Northern District of Georgia

ATLANTA - Six defendants have been sentenced over the last week for their roles in a bank fraud conspiracy scheme that involved withdrawing funds from compromised bank accounts and stealing personal identifying information from victims across the country.

 

“The leaders of this conspiracy sought out bank accounts with large sums of money and then worked with their co-conspirators to obtain the specific account information and personal identifying information for those account holders, eventually draining the accounts of all the money,” said U.S. Attorney John Horn. “Citizens expect that their personal information, as well as their money, is secure, and these defendants threatened that sense of security.”

 

“Financial fraud is one of the largest challenges facing American citizens and businesses today. The United States Secret Service will continue to collaborate with its law enforcement partners to target and arrest individuals who steal from unsuspecting victims,” said Kenneth Cronin, Special Agent in Charge of the U.S. Secret Service, Atlanta Field Office. “This sentencing should be a warning to other like-minded criminals that they will be punished for their wrongdoings.”

 

According to U.S. Attorney Horn, the charges and other information presented in court: Darnell Crutcher and Robert Warren, working together and with others, obtained bank account information of individuals with Home Equity Line of Credit (HELOC) accounts with JP Morgan Chase and other banks. On at least one account, Warren impersonated an account holder to obtain the available balance and days later Crutcher impersonated the same account holder and transferred over $150,000 out of the account.

 

Warren also allowed funds from compromised accounts to be transferred into his own accounts and funneled the money, in wire transfers and cash withdrawals, at Crutcher’s direction. Willie Hubbard, an associate of Crutcher’s, provided Crutcher with his bank account information on accounts he shared with Clifford Waller, his cousin. Crutcher also used these accounts to funnel funds from compromised accounts into, and then directed Hubbard on transferring and withdrawing the compromised funds, activity Waller also facilitated.

 

Juan Enriquez, who knew Crutcher from an Atlanta-area softball team, brought other individuals into the conspiracy. Enriquez’s wife, Anna Enriquez, a former banker with JP Morgan Chase, assisted an impersonator on one of the bank account takeovers who transferred $500,000 out of the victim’s HELOC account.

 

Darnell Crutcher, 55, of Atlanta, Georgia, has been sentenced to nine years and one month in prison to be followed by five years of supervised release, and ordered to pay restitution in the amount of $794,825.90. Crutcher was convicted of bank fraud conspiracy and aggravated identity theft on October 21, 2016, after he pleaded guilty.

 

Robert Warren, 52, of Atlanta, Georgia, has been sentenced to five years and five months in prison to be followed by five years of supervised release, and ordered to pay restitution in the amount of $544,825.90. Warren was convicted of bank fraud conspiracy and aggravated identity theft on December 9, 2015, after he pleaded guilty.

 

Enriquez, 44, of Ft. Lauderdale, Florida, has been sentenced to three years and three months in prison to be followed by five years of supervised release, and ordered to pay restitution in the amount of $252,825.90. Enriquez was convicted of bank fraud conspiracy and aggravated identity theft on August 2, 2016, after he pleaded guilty.

 

Willie Hubbard, 52, of Lithonia, Georgia, has been sentenced to three years and one month in prison to be followed by four years of supervised release, and ordered to pay restitution in the amount of $369,000. Hubbard was convicted of bank fraud conspiracy and aggravated identity theft on July 19, 2016, after he pleaded guilty.

 

Clifford Waller, 41, of Lithia Springs, Georgia, has been sentenced to two years and four months in prison to be followed by five years of supervised release, and ordered to pay restitution in the amount of $472,211.06. Waller was convicted of bank fraud related to his conduct described above, as well as bank fraud conspiracy related to a separate federal investigation, on February 1, 2016, after he pleaded guilty.

 

Anna Enriquez, 44, of Ft. Lauderdale, Florida, has been sentenced to 13 months of probation, including three months of home confinement, and ordered to pay restitution in the amount of $222,825.90. Anna Enriquez was convicted of bank fraud conspiracy on August 2, 2016, after she pleaded guilty.

 

All of the defendants were sentenced by U.S. District Court Judge William S. Duffey, Jr.

 

This case was investigated by the United States Secret Service. The United States Postal Inspection Service also provided valuable assistance.

 

Special Assistant United States Attorney Erin E. Sanders and Assistant United States Attorney Steven D. Grimberg prosecuted the case.

 

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Quinton Jackson, a/k/a Quinton Smith, a/k/a Jaquavious Dixon, has been sentenced to 21 years and 10 months’ imprisonment for possessing a firearm after having been convicted of six prior drug felony offenses. Because of his extensive prior criminal record, Jackson was sentenced as an Armed Career Criminal under federal law.

 

“Jackson reached for a firearm when stopped for routine traffic violation, and fortunately APD officers quickly subdued him and resolved the situation without injury to anyone involved,” said U.S. Attorney John Horn. “Unlawfully possessed weapons are a serious threat to the safety and security of our communities, especially in the hands of dangerous criminals.”

 

“This sentence is another reminder that ATF and our law enforcement partners will hold individuals accountable for any criminal behavior, especially that which threatens the safety of innocent civilians,” said ATF Assistant Special Agent in Charge John Schmidt.

 

“For Atlanta to be a safe city, we must continue to get repeat offenders off our streets,” said Atlanta Police Chief Erika Shields. “A routine traffic stop was the key to holding Mr. Jackson accountable for his various crimes. Our relationships with our law enforcement partners allow us to remove not only weapons but serious criminals from the City of Atlanta.”

 

According to U.S. Attorney Horn, the charges and other information presented in court: On August 22, 2014, Jackson was traveling through the Boulevard Corridor in Atlanta’s Old Fourth Ward neighborhood. Atlanta police officers patrolling the area stopped Jackson’s vehicle for a traffic violation. While approaching the vehicle, an officer noticed Jackson reaching under the driver’s seat. Police then ordered Jackson to stop reaching and open the driver’s window so that an officer could speak with Jackson. After Jackson refused, officers removed Jackson from his vehicle and seized a firearm from underneath the driver’s seat where Jackson had been reaching. Heroin, crack cocaine, and methamphetamine also were discovered in a bag concealed within the console.

 

Law enforcement later questioned Jackson who admitted that he sold drugs, notwithstanding his six previous felony drug convictions. Jackson also admitted that he had been reaching under the seat for the firearm because he did not want to return to prison, suggesting to the officers that Jackson would have resorted to violence to escape the law. Later investigation revealed that during a traffic stop earlier that summer Jackson had dragged another Atlanta police officer down the road when that officer’s arm became trapped in Jackson’s vehicle as Jackson fled the traffic stop.

 

Because five of Jackson’s drug convictions constituted “serious drug offenses” under federal law, Jackson qualified as an Armed Career Criminal subject to an enhanced sentence.

 

Quinton Jackson, a/k/a Quinton Smith, a/k/a Jaquavious Dixon, 36, of Atlanta, Georgia, was sentenced to 21 years, 10 months in prison to be followed by five years of supervised release. Jackson had been found guilty by a jury on July 13, 2016.

 

This case was investigated by the federal Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Atlanta Police Department.

 

Assistant United States Attorney Ryan M Christian prosecuted the case.

 

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA – Dr. Arnita Avery-Kelly, a licensed podiatrist, and Brenda Lewis, Avery-Kelly’s office manager, have been arraigned on federal charges of illegal distribution of opioid pain killers and other drugs at clinic locations purporting to provide podiatric care in Sandy Springs, and Lithonia, Georgia. Dr. Avery-Kelly and Ms. Lewis were indicted by a federal grand jury on December 21, 2016.

 

“Dr. Avery-Kelly was trusted to provide appropriate medical care to her patients,” said U. S. Attorney John Horn. “Instead, with the assistance of Ms. Lewis, she allegedly prescribed addictive opioids without any legitimate medical need. Addiction to powerful prescription opioids unfortunately continues to take a daily toll on many members of our community.”

 

Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division commented on the case, “It is sad commentary when persons in the medical community abuse their positions of trust to hide behind the veil of legitimacy to commit criminal acts. The reckless distribution of pharmaceuticals results in addiction and death. Many thanks to the men and women in law enforcement who made this case a success.”

 

“Health care fraud and the abuse of prescription medications are increasing threats to our local communities,” said Derrick L. Jackson, Special Agent-in-Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “HHS-OIG continues to focus resources on those who divert prescription medication for profit and abuse. Our criminal investigators will continue to work with our law enforcement partners to bring the responsible individuals to justice.”

 

According to U.S. Attorney Horn, the indictment, and other information presented in court: Dr. Arnita Avery-Kelly is a licensed podiatrist, which means she is permitted to evaluate and treat the foot and leg. A nearly three-year federal investigation began after the Georgia Drug & Narcotics Agency (GDNA) visited Dr. Avery-Kelly in November 2013, and February 2014, to discuss high volume, high dosage prescriptions she had written for opioids. The indictment alleges that despite GDNA’s warnings, Dr. Avery-Kelly, with the assistance of office manager, Brenda Lewis, continued to prescribe large volumes of controlled substances without a legitimate medical need and outside the scope of a podiatric practice.

 

For example, during a nine-month period between December 2014 through August 2015, Dr. Avery-Kelly allegedly prescribed over 116,500 oxycodone 30mg pills, 41,800 hydromorphone 8mg pills, and 400 fentanyl patches. In April 2016, agents with the DEA and HHS executed a federal search warrant at Dr. Avery-Kelly’s office in Sandy Springs. At that time, Dr. Avery-Kelly voluntarily surrendered her DEA registration that permitted her to prescribe controlled substances.

 

Dr. Arnita Avery-Kelly, 54, and Brenda Lewis, 55, both of Atlanta, Georgia, were arraigned before U.S. Magistrate Judges Russell G. Vineyard and Catherine M. Salinas, respectively.

 

Avery-Kelly and Ms. Lewis are both charged with conspiring to distribute controlled substances outside the usual course of professional medical practice and for no legitimate medical purpose from November 2013 to December 2015. The drugs allegedly supplied include oxycodone, hydromorphone, fentanyl, hydrocodone, phentermine, alprazolam, and promethazine with codeine. Avery-Kelly is also charged with two counts of maintaining a podiatry clinic – first in Lithonia and later in Sandy Springs – for the purpose of illegally distributing drugs. Finally, Avery-Kelly is charged with fifty-seven individual counts of illegal drug distribution for specific prescriptions written to three separate customers. Ms. Lewis is charged with aiding and abetting Avery-Kelly for eight of those prescriptions.

 

Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.

 

This case is being investigated by the DEA and HHS, with valuable assistance provided by the Georgia Drug & Narcotics Agency, Georgia State Patrol, and the Sandy Springs Police Department.

 

Assistant United States Attorneys Jennifer Whitfield and Michael Brown are prosecuting the case.

 

The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.

 

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Qadir Shabazz, a/k/a Deangelo Moore, a/k/a Deangelo Muhammad, has been sentenced to a prison term of 23 years, one month for running a massive, multi-state fraud scheme in which he operated a fake prison charity that stole thousands of prisoners’ identities to apply for millions of dollars in fraudulent income tax refund dollars. Shabazz was found guilty of 33 felony counts following a jury trial in January 2016.

 

“Shabazz preyed upon prisoners that he promised to help, all in an effort to steal millions from the government,” said U. S. Attorney John Horn. “He thought he could go undetected by using the identities of prisoners, who would not notice tax irregularities, with no regard for the false hope he created for them through his bogus charity. Shabazz will now have an opportunity to better understand the situation of the prisoners he victimized.”

 

“Misusing his position of trust at Indigent Inmate, Qadir Shabazz stole the identities of unsuspecting prisoners and filed false tax returns in their names,” said Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “Individuals who commit refund fraud and identity theft of this magnitude deserve to be punished to the fullest extent of the law. Today, Mr. Shabazz is held accountable for his criminal actions.”
 

Paul D. Mezzanotte, Acting U.S. Postal Inspector in Charge of the Charlotte Division stated, “This is a great example of a law enforcement partnership that worked together to unravel a sophisticated Identity Theft scheme that stole prisoner’s identities for personal financial gain. The U.S. Postal Inspection Service will continue to be vigilant in disrupting criminal organizations who illegally utilize the nation’s mail system.”

 

“I commend all of the law enforcement personnel in Pennsylvania and around the country that helped to bring down this well-organized identity theft and tax fraud scam,” said Pennsylvania Department of Revenue Secretary Eileen McNulty. “Qadir Shabazz took advantage of prisoners through this multi-state conspiracy and he victimized all of us by stealing tax dollars.”
 

According to U.S. Attorney Horn, the charges and other information presented in court: In 2009, Qadir Shabazz started a fraudulent prison charity called Indigent Inmate. The supposed purpose of Indigent Inmate was to provide religious literature and financial assistance to prisoners serving time in state prisons around the country. Shabazz’s employees at Indigent Inmate mailed out thousands of applications for assistance to prisons around the country, and Indigent Inmate received thousands of completed applications back through the mail. Notably, the applications required the prisoners applying for assistance to provide their name, date of birth, and Social Security Number.

 

Various inmates testified at trial that they had sent their information to Indigent Inmate because they hoped they would get some type of assistance while they were incarcerated. One prisoner hoped Indigent Inmate would send him stamps so he could write letters to his parents while another hoped he would get religious materials. Once Shabazz was in possession of this identifying information from the prisoners, he and his co-conspirators filed thousands of fraudulent income tax returns in the names of those prisoners between 2010 and 2012. In total, the tax returns requested over $12,000,000 in fraudulent tax refunds.

 

Notably, the tax returns would list as the home address of the alleged person filing the tax return, addresses that Shabazz or one of his associates controlled in the Atlanta, Georgia, Chattanooga, Tennessee, or Pittsburgh, Pennsylvania areas. The tax refunds would typically be sent to one of these addresses in the form of prepaid debit cards or checks. For instance, from 2010 through 2012, 668 tax returns in the names of Indigent Inmate applicants were filed listing the home address as the same small house located in the Atlanta area.

 

Qadir Shabazz, a/k/a Deangelo Moore, a/k/a Deangelo Muhammad, 41, of Atlanta, Georgia, was sentenced by United States District Judge Timothy C. Batten Sr. to serve 23 years, one month in prison, followed by five years of supervised release. Shabazz was ordered to pay $1,680,299 in restitution to the IRS.

 

This case was investigated by the Internal Revenue Service Criminal Investigation and United States Postal Inspection Service. The Office of the Attorney General for the Commonwealth of Pennsylvania and the Office of Pennsylvania Department of Revenue, Bureau of Criminal Tax Investigations uncovered this scheme and launched a separate state investigation.

 

Assistant United States Attorneys Thomas J. Krepp and Mary L. Webb are prosecuting the case.

 

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - U.S. Attorney John A. Horn announced today that the Northern District of Georgia aided in the collection of over $108 million for U.S. taxpayers in the fiscal year ending September 30, 2016. The Northern District of Georgia directly collected $13,226,147 in criminal and civil actions. Of this amount, $7,596,531 was collected in criminal actions and $5,629,616 was collected in civil actions. Additionally, the Northern District of Georgia worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an extra $95,443,068 in cases pursued jointly with these offices.  Of this joint amount, $546,612 was collected in criminal actions and $94,896,456 was collected in civil actions.

Attorney General Loretta E. Lynch announced on December 14, 2016 that the Justice Department collected nearly $15.4 billion in civil and criminal actions in fiscal year 2016.  The $15,380,130,434 in collections in FY 2016 represents more than five times the appropriated $2.93 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.

"Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Lynch. “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment.  I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”

“Financial enforcement of monetary penalties is a critical element of our office’s mission,” said U.S. Attorney John Horn. “We must ensure that crime does not pay.  With the help of our partner agencies, we continue to focus on efforts to cheat the public and the government and to hold the perpetrators financially accountable.”

The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims.  The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss.  While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.

One of the largest criminal collections for FY2016 in the Northern District of Georgia was recovered in United States v. Jeffrey W. Edwards, an investment fraud case which involved more than thirty individual victims.  Over $710,000 was collected on these victims’ behalf as a result of various enforcement methods, including garnishments.

The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws.  In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.

Additionally, the U.S. Attorney’s Office for the Northern District of Georgia working with partner agencies and divisions, collected $10,014,052 in asset forfeiture actions in FY 2016.  Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Thomas O. Beaurem, 25, of McDonough, Ga., a former postal service employee, has been indicted by a federal grand jury on a charge of unlawfully delaying and destroying mail.  He was arraigned today and pleaded not guilty before federal Magistrate Judge Justin Anand.

“People rely on postal service employees to safely deliver their important letters and packages,” said U. S. Attorney John Horn.  “Beaurem allegedly violated this trust by dumping over four thousand pieces of mail in a wooded area in Decatur.”

“The overwhelming majority of Postal Service employees are honest and dedicated public servants who are worthy of our trust,” said U.S. Postal Service Office of Inspector General Special Agent in Charge Paul L. Bowman.  “However, when we receive allegations of mail delay or destruction, our agency will aggressively investigate these matters to protect the overall integrity of the Postal Service,”

According to United States Attorney Horn, the indictment, and other public information: On October 18, 2016, the United States Postal Service was informed that there appeared to be a significant quantity of undelivered mail in a wooded area in Decatur.  United States Postal Service investigators located the area and found approximately 4,500 pieces of mail, some with cancellation dates as early as October 5, 2016.  Some of the correspondence was too badly damaged to deliver.  Beaurem was allegedly responsible for the delivery of the recovered items.  The mail that was in deliverable condition has since been delivered to its intended recipients by the Postal Service.

Members of the public are reminded that the indictment only contains charges.  The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.

This case is being investigated by the United States Postal Service Office of Inspector General.

Special Assistant U.S. Attorney Nicholas N. Joy is prosecuting the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Robert A. Gist, 66, of Atlanta, Ga., was sentenced to five years of imprisonment for mail fraud in connection with his investment fraud scheme that stole $6.8 million.

"People entrust investment advisors with their life’s savings -- funds that are critical for retirement or their children’s education -- and the sad truth is that there are crooks like Gist who steal these funds for their own benefit.  We encourage investors to thoroughly check out investment opportunities and credentials before entrusting their savings to anyone," said U.S. Attorney John Horn.

David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office, said: "The sentencing of Mr. Gist in federal court holds him fully accountable for his criminal actions.  The FBI hopes that, in addition to the prison sentence handed down today as part of this sentencing, the many victims of this extensive financial fraud scheme are provided some degree of solace."

According to United States Attorney Horn, the charges and other information presented in court: Gist was a registered broker who controlled the investment firm, Gist, Kennedy & Associates and had more than 30 clients who invested more than $6.8 million with him.  Gist obtained investment funds from his clients by misrepresenting that he would make certain conservative investments for them in corporate bonds and other securities, but instead took the funds from his clients and used them for personal expenses, to fund the operations of ENCAP Technologies (an industrial coating company), and to pay other clients purported dividends and proceeds from the investments he falsely claimed to have made for those other clients.  Gist perpetrated the fraud by preparing and mailing false account statements to his clients that falsely showed the conservative investments and returns he was supposed to make but never did.  The victims lost all of their investments.

Gist has been sentenced to 5 years in prison to be followed by 3 years of supervised release, and ordered to pay restitution in the amount of $6,803,260.  Gist was on these charges on August 30, 2016, after he pleaded guilty.

This case is being investigated by the Federal Bureau of Investigation.  Considerable assistance was provided by the Atlanta office of the United States Securities and Exchange Commission.

Assistant United States Attorney Christopher J. Huber prosecuted the case.

Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants.  For more information on the task force, please visit www.StopFraud.gov.”

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA – Dr. Anthony Lefteris, 71, of Atlanta, was indicted today by a federal grand jury, on charges that he prepared false documents and entered false information into the records of the U.S. Department of Transportation so that commercial truck drivers could obtain their licenses.  Lefteris will be arraigned at a later date.

“It is critical that commercial vehicle drivers are physically fit to handle the rigors of driving commercial vehicles, such as tractor trailer trucks,” said U. S. Attorney John Horn.  “When a medical examiner fails to perform the duties entrusted to them or falsifies information, our roads and highways are less safe, putting all drivers at risk.”  

“Today’s indictment of Dr. Anthony Lefteris demonstrates the commitment of the Department of Transportation Office of Inspector General to pursuing fraudulent activities by medical professionals in the motor carrier industry who are willing to compromise the safety of the traveling public for personal gain,” said Marlies Gonzalez, regional Special Agent-in-Charge for the USDOT OIG. “Working with our departmental, law enforcement and prosecutorial partners, we will continue to pursue and detect fraudulent schemes and bring to justice those seeking to compromise the integrity of DOT’s safety programs.”

According to United States Attorney Horn, the indictment, and other information presented in court:  The U.S. Department of Transportation requires that individuals seeking to obtain or renew a state issued commercial driver’s license (CDL) must submit to a medical examination performed by a medical examiner and be medically certified as physically qualified to drive a commercial motor vehicle.  These medical examinations ensure that drivers do not suffer from a medical condition that would otherwise impact their ability to drive a commercial vehicle safely.  Commercial drivers present the U.S. DOT Medical Certificate to their State Driver’s Licensing Agency to document their physical fitness to obtain a CDL.  

Lefteris, a U.S. DOT Medical Examiner, allegedly failed to perform certain procedures during medical examinations that aid in determining a driver's physical fitness to drive a commercial vehicle, including vision examinations, hearing examinations, and urinalyses.  Despite his failure to perform all required procedures, Lefteris allegedly falsified Medical Examination Forms, documenting test results for procedures he never performed.  As part of the scheme, he also issued U.S. DOT Medical Examiner's Certificates to drivers even though he did not did not conduct a complete medical examination.  Lefteris subsequently transmitted his results to the U.S. DOT and certified that he performed the medical examinations in accordance with federal regulations. 

Members of the public are reminded that the indictment only contains charges.  The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.

This case is being investigated by the U.S. Department of Transportation.

Assistant United States Attorney Tracia M. King is prosecuting the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Chenhsin Chan, a/k/a Paul Chan, 44, of Elmhurst, N.Y., was sentenced to a prison term of 11 years, 3 months late Friday in connection with his online marketing and sale of dietary supplements containing ephedrine notwithstanding a federal ban. Chan was found guilty of 30 felony counts following a three-day jury trial in May 2016.

"Today’s sentence reflects the serious implications of distributing substances like ephedrine on the Internet.  Not only was he selling unsafe products, but he was marketing them online with false and misleading statements about their legality and efficacy,” said United States Attorney John Horn.  “We urge members of the public to do their homework before purchasing dietary supplements from any source, especially online."

 "Distributing unlawful, adulterated dietary supplements fraudulently marketed and sold as ‘legal’ products place the U.S. public health at risk," said Justin Green, Special Agent in Charge, FDA Office of Criminal Investigations’ Miami Field Office.  "We will remain vigilant in our efforts to protect American consumers from these fraudulent and potentially dangerous products."

According to United States Attorney Horn, the charges, and other information presented in court:  Paul Chan owned and operated The Wholesale Source, LLC, a company that marketed and sold dietary supplements, primarily through affiliated websites including www.thatswholesale.com and www.ephedrawholesale.com.  From at least July 2005 through August 2012, Chan marketed and sold dietary supplements that contained ephedrine alkaloids on his websites.  In April 2004, the FDA published a final rule declaring dietary supplements containing ephedrine alkaloids to be adulterated because they present an unreasonable risk of illness or injury.  Chan was warned by FDA investigators and others that it was illegal to sell dietary supplements containing ephedrine alkaloids, but he continued to do so. 

Chan’s websites made materially false and misleading claims concerning the use of ephedrine, such as that ephedrine has been approved by the FDA for treatment of any disease, and that ephedrine has “never been illegal.”  The jury found that these false and misleading claims were designed to lure customers into believing that it was legal to purchase adulterated dietary supplements containing ephedrine, when it was not.  Chan sold over $4.5 million in dietary supplements with ephedrine alkaloids, including to customers in the Northern District of Georgia. 

Chan was charged by a federal grand jury on May 29, 2014, with ten counts of mail fraud, ten counts of introducing adulterated food (namely, dietary supplements containing ephedrine alkaloids) into interstate commerce, five counts of knowingly distributing a listed chemical (namely, ephedrine) without obtaining the required registration, and five counts of money laundering. The jury rendered a guilty verdict on all thirty counts of the indictment.

United States District Judge Orinda D. Evans sentenced Chan late Friday to serve 11 years, 3 months in prison, followed by three years of supervised release.  Judge Evans also entered a final order forfeiting Chan’s assets, which the jury found Chan had purchased with proceeds from his crimes, including real property in New York that had been purchased for $950,000, a Mercedes Benz purchased for over $50,000, and a Lamborghini Gallardo purchased for approximately $117,000. The Court also forfeited over $666,000 in cash.

This case was investigated by the FDA’s Office of Criminal Investigations.  The Drug Enforcement Agency provided valuable assistance.

Assistant United States Attorneys Steven D. Grimberg and Kelly K. Connors prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA – Michael Chrisman, an Ohio bookbinder, has been sentenced to one year and nine months in federal prison for stealing nearly $500,000 from his Atlanta business partner in a bookbinding project. The defendant sent false invoices claiming that he completed more than 70 sets of replica Gutenberg Bibles, but he failed to complete all but a handful of sets and instead pocketed the victim’s money to pay for personal expenses.

"Mr. Chrisman tricked the victim into paying false invoices for hand-bound Gutenberg Bible facsimiles that were never completed, and the defendant repeatedly lied to cover up his fraud," said U. S. Attorney John Horn.

"Today’s sentencing in federal court holds the defendant, Michael Chrisman, fully accountable for his criminal actions.  Fraud schemes involving such high loss amounts can do irreparable harm to many businesses, and the FBI remains committed toward assisting and protecting these businesses from those individuals, such as Mr. Chrisman," stated David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.

According to United States Attorney Horn, the charges, and other information presented in court: Michael Chrisman, a bookbinder and rare books restorer, was the owner of Bookbinders Workshop, Inc. in New York. In 2010, Chrisman entered a bookbinding contract with the victim, who had obtained replica loose-leaf pages of the Gutenberg Bible. The original Gutenberg Bible was the first book printed in Western Europe using movable metal type, and the few remaining original copies are among the most valuable books in the world. Chrisman agreed to bind the replica Gutenberg Bible pages using traditional 15th century binding techniques, including hand-binding the pages in pigskin leather with brass clasps. The victim agreed to pay Chrisman’s invoices for each completed set, and the victim planned to sell each replica two-volume set for $12,500 when the entire project was complete.

From October 2010 through June 2013, the defendant sent approximately two dozen invoices to the victim falsely charging him up to $5,500 for each completed Gutenberg Bible set, in addition to bills for supplies. In reality, Chrisman completed binding for only five of the more than seventy sets billed to the victim, resulting in a loss to the victim of over $480,000. Chrisman lied to the victim repeatedly about his progress and only later confessed that he had falsely billed for sets he never completed and that he used the fraudulently obtained money to pay his own living expenses.

Michael Chrisman, 53, of Columbus, OH, was sentenced by U.S. District Court Judge Steve C. Jones to one year and nine months in federal prison to be followed by three years of supervised release, and he was ordered to pay $483,403 in restitution to the victim. Chrisman was convicted on a wire fraud charge on September 6, 2016, after he pleaded guilty.

This case was investigated by the Federal Bureau of Investigation.

Assistant United States Attorney Nathan P. Kitchens prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.

 

ATLANTA – Kevin Edwards, a former political candidate and night club owner, entered a guilty plea today in federal court to stealing federal funds administered by the Atlanta Workforce Development Agency (AWDA).

In connection with the guilty plea, the U.S. Attorney's Office for the Northern District of Georgia announced today that it has reached a civil settlement with the City of Atlanta, on behalf of the AWDA, which agreed to pay over $1.86 million to resolve allegations that AWDA violated the False Claims Act in its expenditure of Department of Labor grant funds for the federal On-the-Job Training (OJT) program.

“The resolution of these related cases ends a troubled chapter for the AWDA,” said U. S. Attorney John A. Horn.  "AWDA exercised lax oversight over the OJT program, and this lack of controls set the stage for Edwards and his companies to abuse the program and steal funds that were intended to help citizens develop skills and find jobs."

“This City of Atlanta settlement resolves the allegations that the AWDA failed to ensure that U.S. Department of Labor funds were used to benefit those who qualified for the Department’s On-the-Job Training Program. We will continue to investigate allegations of DOL grant fraud, especially when Americans workers may be deprived of training and employment opportunities.” stated Rafiq Ahmad, Special Agent-in-Charge of the Atlanta Regional Office of the U.S. Department of Labor, Office of Inspector General.

According to United States Attorney Horn, the indictment, and other information presented in court: AWDA’s OJT program was funded with grants from the United States Department of Labor. The purpose of the OJT program is to increase employment by encouraging companies to hire employees that need additional job skills that the employer is willing to provide in exchange for wage reimbursement.  The ultimate goal of the OJT program is for the employer to hire the participant at the end of the OJT contract period.

Edwards, a former budget analyst with the City of Atlanta, political candidate and nightclub owner, owned or controlled three companies in Atlanta between 2010 and 2012. During this three-year period, the three companies owned or controlled by Edwards received approximately $649,000 in OJT funds from the AWDA.

In participating in the OJT program, Edwards falsely represented to AWDA that his companies, Cronus Development, LLC (Cronus), CGE Construction and Consulting, Inc. (CGE), and The Elite Academy and Learning Center (Elite), would hire and train employees with the goal of full-time employment. Instead, Edwards failed to provide training programs, submitted forged and fraudulent wage reimbursement requests for employees that never worked for his companies, and paid workers only a fraction of the salary reported to AWDA. More specifically, instead of receiving training, OJT employees for CGE and Cronus reported that they did odd jobs, including cleaning up properties, yard work and working at one of Edwards’ nightclubs.  Despite these shortcomings, Edwards received full payments from AWDA through the OJT program.

After the Department of Labor initiated its investigation and identified criminal violations by Edwards and his companies, investigators initiated an investigation of AWDA’s oversight and management of OJT funds.  The investigation identified no additional criminal violations, but resulted in a civil investigation of allegations of inadequate oversight and compliance with reporting regulations designed to ensure that OJT funds were administered properly. 

The civil settlement resolves the United States’ claims that, between 2010 and 2014, AWDA falsely certified compliance with Department of Labor regulations related to OJT.  The government alleged that, contrary to these regulations, AWDA distributed funds to employers that enrolled existing employees instead of new job seekers, failed to provide any training to the OJT enrollees, and hired highly skilled employees, including individuals with professional licenses, who were not eligible for OJT.  The government also alleged that AWDA failed to provide any of the services required by Department of Labor regulations to participants prior to enrolling them in OJT.  The claims settled in the civil settlement are allegations only, and there has been no determination of liability.

This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia and the U.S. Department of Labor, Office of Inspector General.

Assistant United States Attorney David A. O’Neal handled the civil investigation and Jeffrey A. Brown is prosecuting the criminal case for the U.S. Attorney’s Office.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA – Following a three-day jury trial, Frazier B. Todd, Jr. has been found guilty of preparing fraudulent tax returns on behalf of clients.  Todd owned and operated Diverse Resource Business and Tax Firm in Union City, Georgia, along with Cozzie Walker and Robert Sheffield. Walker and Sheffield were also charged in the case and previously pleaded guilty.

"Mr. Todd and his co-conspirators compromised the integrity of our tax system by preparing false tax returns and obtaining fraudulent tax refunds for clients," said U.S. Attorney John Horn.  "As we approach tax season, the public is cautioned to do their homework and choose their return preparers wisely."

"The verdict exemplifies IRS Criminal Investigation’s intense focus on the rigorous pursuit of tax refund fraud," stated Special Agent in Charge, Veronica F. Hyman-Pillot, IRS Criminal Investigation. "Frazier Todd not only violated the integrity of our tax system, but also placed an unfair burden on the hardworking taxpayers of America. We would like this verdict to serve as a strong message to other return preparers that there are consequences for committing refund fraud."

According to U.S. Attorney Horn, the charges and other information presented in court: Todd conspired with Cozzie Walker and Roberta Sheffield to exploit the American Opportunity Tax Credit (“AOTC”), a refundable tax credit for certain college expenses such as tuition and related costs. Marketing the AOTC as a “stimulus” available to almost anyone, Todd and his business partners prepared false tax returns for thousands of clients, many of whom were disabled, elderly, or low-income.

Todd was also convicted for a much broader fraud scheme in which he exploited not only the AOTC but other tax credits as well to maximize his clients' refunds. For example, he filed dozens of corporate tax returns falsely claiming that the businesses purchased tens of thousands of gallons of gasoline for "off-highway business use," and were entitled to the Fuel Tax Credit. He also falsely claimed that clients had installed solar panels on their homes in order to claim the Residential Energy Credit, which is designed for taxpayers who make green energy upgrades to their homes.

The jury found Todd guilty of conspiracy to commit mail and wire fraud, obstructing the internal revenue laws, and ten counts of presenting false claims for refund to the IRS.  The Government voluntarily dismissed two additional counts of presenting false claims prior to the trial. Cozzie Walker pleaded guilty on March 2, 2016, to conspiracy to commit mail and wire fraud.  Roberta Sheffield pleaded guilty on March 21, 2016, to conspiracy to commit mail and wire fraud, and 14 counts of presenting false claims for refund to the IRS.

The sentencing of Frazier B. Todd, Jr., 58, of Atlanta, Georgia, is scheduled for March 8, 2017, also before U.S. District Court Judge Cohen.        

The sentencings of Cozzie Walker, 42, of Atlanta, Georgia, and Roberta Sheffield, 43, also of Atlanta, Georgia, are scheduled for February 23, 2017, before U.S. District Court Judge Mark H. Cohen.

This case is being investigated by the Internal Revenue Service Criminal Investigation.

Assistant United States Attorneys Lynsey M. Barron and Steven D. Grimberg are prosecuting the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA – Trevor King, a sergeant with the Atlanta Police Department (APD), has been indicted by a federal grand jury on charges of using excessive force against a customer at an Atlanta Walmart store.

“We work closely with APD and its dedicated officers every day to make our city safer.  This indictment, however, alleges conduct that is so far outside the bounds of an appropriate police-citizen encounter that this officer must be held accountable,” said U.S. Attorney John Horn. 

According to U.S. Attorney Horn, the indictment, and other public information:  In 2014, APD Sgt. Trevor King was working off-duty as a security officer at the Walmart store located on Martin Luther King, Jr., Boulevard in downtown Atlanta.  On the evening of October 13, 2014, King, dressed in his APD uniform, and carrying an expandable baton, stopped a customer from exiting the store because he wrongfully believed the customer had shoplifted.  King allegedly grabbed the customer’s shirt and began to strike the man with his baton.  King struck the customer multiple times, breaking the customer’s leg. 

Trevor King, 48, of Rex, Georgia, is expected to be arraigned on these charges in federal court within the next week.

Members of the public are reminded that the indictment only contains charges.  The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.

This case is being investigated by the Federal Bureau of Investigation.

Assistant U.S. Attorney Brent Alan Gray and DOJ Civil Rights Division Trial Attorney Sanjay Patel are prosecuting the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.

Atlanta Police Sergeant Trevor King, 48, of Rex, Georgia, was charged by a federal grand jury with violating the rights of a man by using excessive force against him on Oct. 13, 2014.

The indictment was announced today by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division, and U.S. Attorney John Horn of the Northern District of Georgia. 

According to the indictment and other publicly available information, in 2014, King was working off-duty as a security officer at a Walmart store located on Martin Luther King Jr. Boulevard in downtown Atlanta.  On the evening of Oct. 13, 2014, King, dressed in his APD uniform and carrying an expandable baton, stopped a customer from exiting the store because he wrongfully believed the customer had shoplifted.  King allegedly grabbed the customer’s shirt and began to strike the man with his baton.  King struck the customer multiple times, breaking the customer’s leg.  

An indictment is merely an accusation and the defendant is presumed innocent unless proven guilty.

The case is being investigated by the FBI and is being prosecuted by Trial Attorney Sanjay Patel of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Brent Alan Gray of the Northern District of Georgia.

ATLANTA - Aaron James Glende a.k.a. IcyEagle has been sentenced to four years and two months’ imprisonment for access device fraud and aggravated identity theft.  Glende sold stolen personally identifying information and login credentials on AlphaBay Market, a website operating in the so-called “Dark Web,” where anonymity software is used to hide the identities of website visitors.

“Glende sold stolen bank account information and other login credentials on AlphaBay, a ‘Dark Web’ website devoted to the anonymous sale of criminal goods and services, including weapons, stolen credit cards, and illegal narcotics,” said U.S. Attorney John Horn.  “In the process, he didn’t care who he hurt, or the effects on the victims’ lives.  The United States Attorney’s Office recently established our Cybercrime Unit to identify, investigate and, ultimately, prosecute cybercrimes just like this one.”

“The sentencing of Glende to federal prison reflects the commitment of the FBI, along with its various law enforcement partners, to aggressively pursue those criminal elements lurking in the Dark Web and attempting to hide behind TOR devices or sites,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.  “This case generated numerous victims with varied degrees of financial losses but, with today’s sentencing, the FBI hopes that these victims can have some solace that Glende, a.k.a. IcyEagle, is being held fully accountable for his criminal actions.”

According to U.S. Attorney Horn, the charges, and other information presented in court: From about November 5, 2015, until May 4, 2016, Aaron Glende, a.k.a. IcyEagle, advertised and sold stolen personally identifying information on a hidden services website. 

The website contained numerous features to assist prospective buyers who wished to purchase criminal services and goods.  For example, the website contained search categories corresponding to various criminal services; those categories included “Fraud,” “Drugs & Chemicals,” “Counterfeit Items,” “Weapons,” and “Carded Items.”  Much like Amazon or eBay, website users could rate sellers and search for certain items or sellers by name.  Unlike Amazon and eBay, however, transactions on the website were typically executed through Bitcoin, a cryptocurrency that helps hide the identities of buyers and sellers. 

A review of the website revealed that Glende, using the online nickname IcyEagle, had approximately 300 listings advertising login credentials or personally identifying information for sale, including bank account credentials.  For example, one listing by Glende described accounts for sale as “High Balance SunTrust Logins 30K-150K Available.”  Glende wrote in the sales listing: “I bring you freshly hacked Sun Trust Bank Account Logins.”

On multiple dates in March and April 2016, an FBI agent, acting in an undercover capacity, accessed the AlphaBay website.   While on the website, the agent purchased bank account information from Glende.  A review of the information purchased from Glende confirmed that it contained usernames, passwords, physical addresses, email addresses, telephone numbers, and bank account numbers that belonged to bank customers.  A search of Glende’s computer after his arrest revealed that he possessed over 2,800 unauthorized access devices, including 944 usernames and passwords for bank accounts, 1,243 usernames and passwords for other electronic accounts, 123 Social Security numbers, 386 credit card numbers, and 123 bank account numbers.

On November 30, 2016, Aaron James Glende, 35 of Winona, Minnesota, was sentenced to four years and two months’ imprisonment, followed by three years of supervised release.  He pleaded guilty to access device fraud and aggravated identity theft on September 21, 2016.

This case was investigated by the Federal Bureau of Investigation.  Assistance was provided by Homeland Security Investigations, the U.S. Postal Inspection Service, and the Winona, Minnesota Police Department. 

Assistant United States Attorneys Samir Kaushal and Kamal Ghali prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA – A federal judge sentenced Elgin Demarco Jordan for heroin and cocaine trafficking and money laundering in connection with a scheme where he used drug proceeds to purchase numerous properties in and around the English Avenue area of Atlanta.

“Jordan victimized this community twice – first by trafficking drugs, and then by using residential properties to conceal the profits from his drug dealing,” said U. S. Attorney John Horn. “As part of his sentence, Jordan agreed to forfeit 14 properties, two of which will become homes to community police officers from the Atlanta Police Department as part of the Secure Neighborhoods program. Through this program, the police officers who serve the English Avenue community become not only homeowners, but neighbors.”

Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division stated, “The successful prosecution of this case is indeed a victory for drug law enforcement. The collective efforts in this investigation illustrate the true spirit of cooperative law enforcement here in Atlanta. DEA is committed to keeping our communities safe and ultimately the winners in this investigation are the residents in the English Avenue area.”

“Asset forfeiture provides a valuable tool for law enforcement officials, as it is designed to weaken the economic foundations of the illicit drug trade,” stated Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “The forfeiture of Elgin Jordan’s properties is a great example of this tool at work. We are proud to work hand-in-hand with our law enforcement partners and will continue to provide our financial expertise in narcotics investigations.” 

“In partnership with the U.S. Attorney’s Office, the Atlanta Police Department has removed another dangerous and predatory criminal from the City of Atlanta,” said Atlanta Police Chief George N. Turner. “Mr. Jordan’s scheme of using drug money to buy up valuable real estate has backfired and we can now have officers in the English Avenue neighborhood 24 hours a day so the residents in that area will feel safe and protected. The Atlanta Police Department is committed to cracking down on criminal activity and individuals that threaten the safety and quality of life for Atlanta residents and visitors.” 

“The Atlanta Police Foundation is spearheading a public safety strategy through our Westside Security Plan to address the safety concerns on Atlanta’s Westside,” said Dave Wilkinson, President and CEO, Atlanta Police Foundation. “The addition of these two properties to our Secure Neighborhoods program will allow us to provide homeownership opportunities for Atlanta police officers to become residents of the communities they protect and serve.”

According to U.S. Attorney Horn, the charges and other information presented in court: From at least February 2010 to July 2015, Elgin Jordan distributed kilogram quantities of cocaine and half-kilogram quantities of heroin using Northwest Atlanta as his base. To conceal the profits from his illegal drug trade, he laundered the money by structuring cash deposits into bank accounts and then used those funds to purchase numerous properties, often with the help and in the name of family members or other individuals. As of July 2015, Jordan controlled properties with a total tax assessed value of approximately $1.5 million, several of which were residential properties in and around the English Avenue area of Atlanta, Georgia.

Federal law allows for the forfeiture of property used to facilitate or commit felony drug offenses, as well as property involved in money laundering. As a part of Jordan’s plea agreement and the judgment in the case, Jordan forfeited his interest in 14 properties he acquired in connection with his crimes.

As a result of a partnership and collaboration between the Department of Justice and community groups, two of the forfeited properties located in the English Avenue neighborhood will be turned over to the Atlanta Police Department and the Atlanta Police Foundation, to be renovated and used to provide homes for Atlanta Police Officers who will help staff the community policing force in the neighborhood. 

The goal of the Atlanta Police Foundation’s Secure Neighborhoods Initiative is to improve public safety by placing police in Atlanta neighborhoods through housing opportunities. The initiative offers sworn police officers—who are committed to living in the communities they protect and serve—affordable options, incentives to stay, and clear pathways to homeownership. As individuals from the police department become pillars in their communities, it increases the neighborhood's stability and overall security.

Elgin Demarco Jordan, 42, of Atlanta, Georgia, was sentenced by U.S. District Judge Steve C. Jones to eight years in prison to be followed by four years of supervised release. Jordan was convicted on these charges on June 3, 2016, after he pleaded guilty.

This case was investigated by the Drug Enforcement Administration, Atlanta Police Department, and Internal Revenue Service Criminal Investigation.

Assistant United States Attorneys Garrett L. Bradford and Michael J. Brown prosecuted the case.

The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA – The U.S. Attorney’s Office for the Northern District of Georgia announced that pain management physician Dr. Anthony Clavo has agreed to the entry of a consent judgment for $430,000 plus interest to resolve allegations that he violated the False Claims Act by billing Medicare, Medicaid, and TRICARE for medically unnecessary services.  The federal government’s portion of the consent judgment is $322,407, and the State of Georgia’s portion is $107,593. 

“When physicians bill the government for medical services that are not needed by the patient, they violate the trust placed in them by their patients and the government to provide only medically necessary care,” said U. S. Attorney John Horn.  “Healthcare providers should be vigilant about prescribing only medically necessary services for their patients.”

“Those individuals in positions of trust within the healthcare industry have an inherent duty to be forthright in their claims submittals to those government programs that pay for their services.  Through the False Claims Act settlement and the associated monetary judgements announced today, the defendant in this case, Dr. Anthony Clavo, understands this and the U.S. Government’s position on this a lot better.  The FBI will continue to play a role in ensuring that the federal funds providing these healthcare programs are not abused,” said George Crouch, Acting Special Agent in Charge, FBI Atlanta Field Office.

“Delivering medically unnecessary treatment or failing to document the need for that care can be a serious threat to the health of the patient as well as the federal programs they depend upon,” said HHS OIG SAC Derrick L. Jackson. “Together with our law enforcement partners we will be vigilant in pursuing such offenses.”

“Fighting Medicaid fraud has been and will remain a top priority for our office,” said Attorney General Chris Carr. “People who misuse our medical systems divert funds from those in need of care and abuse Georgia taxpayer dollars. We will continue to work with our statewide and national partners to aggressively pursue these instances.”

“This settlement highlights the commitment of the Defense Criminal Investigative Service (DCIS) and its law enforcement partners to protect the integrity of TRICARE, the Department of Defense health care program that serves our Warfighters, their family members, and military retirees,” said Special Agent in Charge John F. Khin, Southeast Field Office.  “With DoD's limited resources and budgets, DCIS must continue to aggressively investigate fraud, waste, and abuse to preserve and recover precious taxpayer dollars for our most vulnerable programs.”

The government alleges that Dr. Clavo submitted or caused the submission of false claims to Medicare, Medicaid, and TRICARE for services that were not medically necessary or where there was insufficient information to determine the amount due the provider during the period from January 1, 2014 through June 22, 2015. 

The settlement resolves allegations filed by Herretta Pickens and Teresa Williams, former employees of Dr. Clavo, under the qui tam, or whistleblower, provisions of the False Claims Act, which authorize private parties to sue for false claims on behalf of the United States and share in the recovery. The lawsuit was filed in the Northern District of Georgia and is captioned United States & State of Georgia ex rel. Herretta Pickens & Teresa Williams v. Southern Pain Institute, P.C. d/b/a Southern Spine & Pain Institute et al., No. 1:15-cv-2381 (N.D. Ga.).  Ms. Pickens and Ms. Williams will receive a share of the settlement. 

This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services.  The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.  One of the most powerful tools in this effort is the False Claims Act.  Since January 2009, the Justice Department has recovered a total of more than $31.6 billion through False Claims Act cases, with more than $19.2 billion of that amount recovered in cases involving fraud against federal health care programs.

The claims resolved by the settlement are allegations only, and there has been no determination of liability.

This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Department of Health & Human Services Office of Inspector General, the Federal Bureau of Investigation, the Defense Criminal Investigative Service, and the Georgia State Attorney General’s Medicaid Fraud Control Unit.

The civil settlement was reached by Assistant United States Attorney Lena Amanti and Georgia Assistant Attorney General Sara Vann.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - John W.  Jackson, Jr., and Corry Sandlin, have been sentenced in federal district court for stealing their deceased parent's government benefits.  Each defendant lied to the government about their parent’s deaths, and continued to receive benefits destined for the deceased.

“Both defendants got away with their lies for years, stealing large sums of taxpayer dollars,” said U. S. Attorney John Horn. “Theft like this directly impacts others who receive these types of benefits.  These two together stole over $500,000 of government money, meant to sustain those who have paid into the system, and expect to have something in retirement.”

“The OIG is committed to working with the Social Security Administration to detect and investigate deceased payee fraud cases, in which individuals conceal death information from SSA to fraudulently receive Social Security benefits intended for the deceased. We thank the U.S. Attorney’s Office in Northern Georgia for prosecuting these and other deceased payee fraud cases,” stated Margaret Moore-Jackson, Special Agent-in-Charge of the Social Security Office of the Inspector General’s Atlanta Field Division.

According to U.S. Attorney Horn, the charges and other information presented in court: Defendant Jackson's father died in 1980 and the Social Security Administration (SSA) continued to pay his retirement benefits until 2014.  When initially questioned in 2015 by Social Security agents about his father's whereabouts, Jackson told the agents this father had run away with a younger woman a year prior and he did not know where his father was.  Only after interviewing another family member did the SSA learn that Jackson's father had died decades earlier.  Eventually, the SSA was able to determine that Jackson's father died in 1980.  In total, Social Security paid out and Jackson improperly received $241,171.60.

Sandlin’s mother died in 2004.  After her death, the SSA continued to pay her spousal retirement benefits and Defense Finance & Accounting Services (DFAS) continued to pay her survivor benefits.  In fact, Sandlin not only never informed the SSA of his mother's death, he completed and submitted 11 annual certifications to DFAS swearing that she remained eligible for the benefits. The SSA paid out $126,103.00 and DFAS paid out $145,716.00, after Sandlin's mother's death.  In total, Sandlin improperly received a total of $271,819.00

John W.  Jackson, Jr., 70, of Decatur, Georgia, has been sentenced to ten months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $241,171.6.  Jackson has been convicted on these charges on July 25, 2016, after he pleaded guilty.

Corry Sandlin, 68, of Marietta, Georgia, has been sentenced to one year, and three months in prison to be followed by three years of supervised release and ordered to pay restitution in the amount of $254,965.14

This case was investigated by the Social Security Administration - Office of the Inspector General.

Special Assistant United States Attorney Diane C. Schulman prosecuted the case.

For further information, please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA – Damilola Solomon Ibiwoye and Olayinka Olaniyi, citizens of Nigeria living in Kuala Lumpur, Malaysia, were extradited to the United States and arraigned in federal court in Atlanta on November 18, 2016, in connection with a series of alleged “phishing scams” that targeted colleges and universities across the country, including the Georgia Institute of Technology (“Georgia Tech”). 

In connection with their arraignment, U.S. Attorney John Horn announced the creation of a Cybercrime Unit within the Atlanta U.S. Attorney’s Office Criminal Division.  The new unit is designed to combat the growing threat of cybercrime in its many forms, such as “hacks” into private networks and theft of proprietary data; the creation and use of malware to harvest personal financial information and logins; and the operation of illicit marketplaces on the darknet. The cyber unit will operate within the office’s Financial Fraud & Cyber Crime Section and will be staffed with five highly-trained and experienced federal prosecutors dedicated to prosecuting cybercrime and assisting federal agencies in their cyber investigative efforts around the world.  

“Our office holds a distinguished history of prosecuting some of the highest-profile cyber matters in the country, from the creators of the SpyEye and Citadel malware to the foreign nationals responsible for the hacks into RBS WorldPay, E*Trade, and other corporations,” said U.S. Attorney Horn. “And we have successfully ensured that some of these criminals, who believe themselves to be safe in the shadows of the darknet, are brought to justice in U.S. court.  The creation of a dedicated Cyber Unit will build on this expertise to aggressively identify and investigate the newest directions in cybercrime whether committed by individuals, syndicates, or even state actors here or abroad.”    

The U.S. Attorney’s Office for the Northern District of Georgia was one of 30 offices across the country that was recently allocated an additional Assistant U.S. Attorney position for the purpose of enhancing its cybercrime prosecution efforts. The awarding of this position reflects the office’s past success in combating cybercrime threats, as well as the need to enhance those efforts against new and emerging cyber threats.

The newly formed cyber unit will investigate and prosecute, among other things, computer hacking, intellectual property theft, and related offenses, including (a) the development or distribution of malware; (b) the theft of property or information from a protected computer, including personal identifying information, health records, financial information, intellectual property, trade secrets, and other sensitive information; (c) distributed denial of service (DDOS) attacks on web servers, and (d) computer intrusions that directly or indirectly impact national infrastructure and national security interests. 

The unit will also focus on building and maintaining productive working relationships with the private sector, collaborating on cyber defense practices through one-on-one meetings, seminars, panels, task forces, and case interactions.  Cyber prosecutors in the office already regularly participate in numerous speaking engagements each year, and will continue to do so as part of the cyber unit. 

The indictment of Damilola Solomon Ibiwoye, 27, and Olayinka Olaniyi, 32, alleges that the defendants directed phishing emails to college and university employees. A “phishing scam” is the act of sending fraudulent emails that appear to come from legitimate enterprises for the purpose of acquiring personal information, including usernames and passwords. The alleged phishing scam targeted Georgia Tech and other colleges and universities in the United States. Once employees entered their login and password information, the defendants captured their personal information and used that information to change payroll direct deposit payment information and fraudulently directed payroll deposits into bank accounts they controlled. The FBI, with the assistance of Georgia Tech, and the Malaysian government, were able to determine that the defendants allegedly launched their phishing attacks while living in Kuala Lumpur, Malaysia. In total, the defendants and co-conspirators allegedly stole over $1 million dollars from over 25 colleges and universities in the United States.

“The arrests and subsequent extraditions of Ibiwoye and Olaniyi are the direct result of global cooperation among US and international law enforcement and the private sector.  Individuals and groups targeting US institutions and citizens from abroad through cyber-attacks and spear phishing emails should no longer feel confident that they will remain anonymous and protected by geographic boundaries.  These efforts demonstrate the FBI’s commitment to identifying and pursuing cyber criminals world-wide, and serves as a strong deterrent to others targeting American institutions and citizens through email phishing scams.  This case should also serve as a reminder to the public to remain vigilant of the continued use of phishing emails seeking to steal their personal information,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office, stated. 

The defendants were arraigned before U.S. Magistrate Judge Linda T. Walker on November 18, 2016. A federal grand jury in the Northern District of Georgia returned an indictment against Damilola Solomon Ibiwoye, 27, and Olayinka Olaniyi, 32, on December 15, 2015, on charges of conspiracy to commit wire fraud, computer fraud and aggravated identity theft. Both defendants have been in Malaysian custody since their arrests last year, pending completion of extradition proceedings.

Members of the public are reminded that the indictment referenced above only contains charges.  The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.

This case is being investigated by the Federal Bureau of Investigation.

Assistant United States Attorney Jeffrey A. Brown is prosecuting the case.

If your company or clients wish to participate in future outreach efforts by the Cyber Unit concerning best practices, or for further information about this case, please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

Senator Unterman and distinguished members of the Opioid Abuse Study Committee, thank you for the opportunity to discuss the Department of Justice’s efforts aimed at combatting the growing problems we face with heroin and opioid abuse in our state.  During my fourteen years with the United States Attorney’s Office for the Northern District of Georgia, I have witnessed firsthand the crippling effects that heroin and opioid addiction and overdoses have on all our communities.  As the U.S. Attorney, I am proud that my district has been working aggressively on this problem and I’m pleased to be able to offer our perspective regarding the threats to our state.

The United States is experiencing a crisis in the abuse of, and overdose deaths caused by, heroin and its more potent analogue, fentanyl.  This epidemic is ravaging countless communities, whether large or small, urban or rural.  Heroin overdose deaths quadrupled from 2000 to 2013, with most of the increase occurring after 2010.  As a result, heroin and fentanyl abuse is the number one public health issue for cities such as Cleveland, Baltimore, Philadelphia, as well as more rural communities in West Virginia and New England.

Outlook for the Atlanta Region: Background and Causal Factors

Georgia fortunately has not experienced the exponential increases that are ravaging the Midwest and Northeast, but our situation is precarious.  We began seeing disturbing spikes in heroin distribution and overdoses in the Atlanta region several years ago, and our statistics remain dramatically higher than anything we’ve seen in the last 20 years.  And, our region appears to be tracking the progression of the worst-hit communities, where those addicted to prescription painkillers transition to cheaper and more deadly substitutes, heroin and fentanyl.  The CDC estimates that 75 percent of heroin abusers today begin their descent into addiction with prescription drugs, and five years ago Georgia’s illicit opioid market skyrocketed, with overdose deaths from prescription drugs exceeding the combined overdose deaths from cocaine, methamphetamine, and marijuana.  Georgia therefore offered a broad base of opioid abusers who were at greatest risk to turn to $5 doses of heroin instead of illicit pills that cost $25 or more. 

At the same time, the Atlanta region’s marketplace shifted, as for many years heroin sales were largely limited to specific neighborhoods in downtown Atlanta.  Unfortunately, Atlanta has long served as a distribution hub for Mexican drug cartels, which noticed the increased demand for heroin and immediately began manufacturing and importing higher-quality heroin to service the growing U.S. customer base.  Consequently, heroin has become readily available through these existing distribution channels throughout the region but especially in counties north of Atlanta, giving addicts access to much purer, cheaper, and more potent heroin.  It also is now available in powder form that need not be injected intravenously, removing a barrier for use for some.  A helpful and thorough summary of this narrative is presented in a report published by the Fulton County District Attorney’s Office, and can be accessed at http://www.atlantada.org/Fulton_County_Heroin_Project___Final_Report.pdf.

Outlook for the Atlanta Region: Recent Statistics

The statistics for the Atlanta region may not be as shocking as in the country’s hardest hit communities, but they are nonetheless stunning.  For example,

• Cobb County experienced a growth from 8 heroin overdose deaths in 2010 to 53 in 2014.  Through the first half of 2015, half of the county’s overdose deaths involved heroin.
• DeKalb County had only 9 heroin overdose deaths in 2013, and jumped to 27 in the first 11 months of 2015, with 21 of those involving fentanyl.
• Fulton County recorded 4 heroin overdose deaths in 2010, and jumped to 31 in 2013 and 77 in 2014.
• Gwinnett County experienced a rash of 17 heroin overdose deaths in a several month period during the fall of 2015. 

 

These statistics are consistent with seizures and interdictions by law enforcement.  On March 1, 2016, agents recorded the largest seizure of fentanyl on record in Georgia, and one of the largest in the United States, during a traffic stop conducted in Bartow County, yielding a total of 40 kilograms of fentanyl. This seizure is even more staggering when considering that fentanyl is dosed in micrograms. 

Creation of the Heroin Working Group

After we noticed the increased heroin activity in our cases about three years ago, the U.S Attorney’s Office convened a Heroin Summit in June 2015, gathering nearly 200 law enforcement and other multidisciplinary participants to take note of these trends, hear from experts in our sister cities, and begin planning our response.  Those who participated expressed interest in continuing the collaborative momentum from the summit, and consequently the Heroin Working Group (HWG) was born.

The purpose of the Heroin Working Group is to employ a broad, multidisciplinary approach to understand and address the growing abuse of heroin, fentanyl, and prescription opioids in our community.  Several state agencies are active participants in the HWG.  Certainly, law enforcement has a critical role in interdicting and prosecuting the importers and distributors of these deadly substances, as well as a broader responsibility in deterring and preventing drug abuse.  However, we recognize that a truly impactful solution to this problem cannot be achieved by arrests and prosecutions alone, and instead requires involvement and contributions from the medical, education, public health, emergency response, public policy, addiction treatment, mental health, and other communities.   The HWG fills this need, bringing together participants from all these constituencies to share information and break down the walls that separate these disciplines and allow us to solve these problems together.

The HWG meets every other month, and has created subcommittees for members to focus on research and data collection; medical and treatment issues; education, prevention, and family intervention; law enforcement and criminal justice; and legislative and public policy initiatives.  After meeting for almost a year and a half, the HWG has gained a deeper understanding of the current landscape as well as several strategies and initiatives that will reduce the threats from opioid addiction and abuse.

Working Group Initiatives

While our region certainly is suffering from substantial growth in heroin and fentanyl abuse, Georgia and the south in general have not seen the exponential increases that have simply devastated the Midwest and Northeast.  However, we fear this crisis is creeping further south.  Helpfully, Georgia already has enacted good Samaritan laws and sanctions the use of opioid antagonists such as naloxone to revive those who have overdosed, both of which are critical tools to fighting this epidemic.

There is much more to be done, and the HWG presently is focusing on several initiatives, including:

• The creation of a centralized database to collect cause of death reports from all coroners and medical examiners, as well as medical reports of overdoses from emergency rooms, paramedics, and peace officers.  The lack of such a database prevents us from accurately identifying the scope of the problem and directing the necessary resources to it.  An informal collaborative effort has yielded the bones of a database that contains drug overdose deaths only.  This has provided many of the preliminary (and alarming) statistics quoted above and confirmed our anecdotal information about this problem.  But the reporting is incomplete and often months late, as currently there is no mandatory reporting in the State.
• The creation of a card that will be provided to people who are revived after overdosing from heroin, urging them to seek treatment and providing them with a list of resources to do so. 
• The dissemination of a law enforcement protocol that peace officers can use when responding to an overdose, so that critical investigative facts can be collected and shared among jurisdictions to aggressively identify and prosecute the distributors of these dangerous substances.
• Supporting a strong and effective prescription drug monitoring plan (PDMP) that has been shown in other states to dramatically reduce the availability and abuse of illicit prescription drugs.
• The encouragement of educational and prevention events in schools, universities, and communities.  The HWG has sponsored two community forums, one of which was livestreamed by WSB-TV and via our office’s Facebook page and Twitter. 
• The identification of a comprehensive listing of addiction treatment providers to help direct those in need of services and evaluate whether the inventory of service providers is sufficient to address the current needs.

   

The list of people who are actively involved with the HWG is quite impressive.  What is even more impressive is that these members have contributed time and resources voluntarily, with no funding.  The dedication of these individuals and agencies to address this public health crisis has been extraordinary, and they have accomplished much as noted above.  However, several of the initiatives taken on by the HWG certainly could be much more impactful if they were operated or implemented by a funded entity or by a public policy entity.  There is certainly much more that can be done, and we must stay ahead of the problem before it becomes as pervasive and dire as experienced in the Midwest and Northeast. 

The U.S. Attorney’s Office will aggressively combat the abuse of heroin, fentanyl, and illicit opioids in our communities, and we will continue our ongoing partnerships with federal, state, and local law enforcement agencies to arrest and prosecute those responsible for perpetuating this crisis.  We also are committed to supporting the HWG in a broader, multidisciplinary approach to solving this problem, and welcome and encourage any and all support to achieve this outcome. <END>

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Walter Lee Parker, Paul Victor Wilson, a/k/a “Ivory Roberson,” Roelisha Housley, Janai Cavitt, and Kaprice Green, have been sentenced for participating in a conspiracy to distribute six kilograms of cocaine which they attempted to smuggle through Atlanta’s Hartsfield-Jackson International Airport.

“Federal agents working with customs officers at Atlanta's Hartsfield-Jackson International Airport permanently ended this drug smuggling ring,” said U.S. Attorney John Horn.  “Drug smugglers continually seek new ways to move their narcotics.  We hope that this case shows that the airport is a poor choice for shipping illegal drugs.” 

“As the world’s busiest airport, Atlanta is a prime target for drug traffickers who think they can hide in plain sight by blending in with other travelers. This case shows just how mistaken that view is for anyone considering testing the system,” said Special Agent in Charge of ICE Homeland Security Investigations Atlanta Nick S. Annan. “These sentencings show the dedication and effectiveness of HSI along with our U.S. Customs and Border Protection partners to identify and arrest anyone who attempts to illegally smuggle contraband into the United States through the Atlanta airport.”

According to U.S. Attorney Horn, the charges and other information presented in court: on February 10, 2016, Janai Cavitt and Kaprice Green arrived at Atlanta’s Hartsfield-Jackson International Airport on a flight from Montego Bay, Jamaica, in transit to their final destination of Cincinnati.  While in Atlanta, customs agents stopped Cavitt and Green and discovered that each defendant had three kilograms of cocaine hidden in the lining of their suitcases.  After obtaining confessions from Cavitt and Green, federal agents determined the two couriers intended to deliver the cocaine to Roelisha Housley and Walter Lee Parker in Cincinnati for $10,000. 

Federal agents in Atlanta, coordinating with law enforcement counterparts in Ohio, also obtained confessions from Housley and Parker, who planned to further distribute the cocaine.  After learning that the sister of one courier, who was not involved in the conspiracy, began to receive threatening text messages demanding the return of the cocaine, agents pinpointed Wilson as the threat maker.  With the assistance of counterparts in Florida, agents ultimately uncovered that Wilson worked with the Jamaican-based cocaine supplier, and that Wilson was the leader of the drug conspiracy and owner of the cocaine. 

Each of the defendants pleaded guilty in federal court in Atlanta, Georgia, to conspiracy to distribute cocaine.  On November 3 and 4, 2016, U.S. District Judge William S. Duffey, Jr., imposed the following sentences:

• Walter Lee Parker, 37, of Cincinnati, Ohio, was sentenced to eight years, one month in prison to be followed by four years of supervised release;

   

• Paul Victor Wilson, a/k/a “Ivory Roberson,” 47, of Weston, Florida, was sentenced to 11 years, five months in prison to be followed by five years of supervised release;

 

• Roelisha Housley, 21, of Fairfield, Ohio, was sentenced to five years, eight months in prison to be followed by four years of supervised release;

 

• Janai Cavitt, 21, of Covington, Kentucky, was sentenced to three years, nine months in prison to be followed by three years of supervised release; and

 

• Kaprice Green, 19, of Cincinnati, Ohio, was sentenced to three years, four months in prison to be followed by three years of supervised release. 

This case was investigated by the Department of Homeland Security.

Assistant United States Attorneys Trevor C. Wilmot and Laurel R. Boatright prosecuted the case.

The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Walter Ray Hamilton and James Robert Jones, a/k/a Sean Jones, were sentenced for conspiracy to distribute cocaine and marijuana for their roles in a drug trafficking organization that operated out of a house located approximately 350 feet from Chamblee Charter High School, in Chamblee, Georgia.  The organization used the house in this residential neighborhood to distribute multi-kilogram quantities of cocaine and marijuana.   

“This Atlanta-based organization brought the scourge of dangerous drugs to our community, and set up its base of operations down the street from a school,” said U. S. Attorney John Horn.  “In doing so, they brought drug trafficking to the doorstep of what should have been a safe place for our children.”

“These cocaine and marijuana distributors were blinded by greed and power. They also had the audacity to conduct their unlawful activities in close proximity to an educational facility, which cannot and will not be tolerated. Now, they stand powerless and will spend well-deserved time in prison. This case would not have been possible without the spirited level of cooperation between all law enforcement agencies involved,” said Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division.

“The US Postal Inspection Service is charged with defending the nation’s mail system from illegal use.  We remain steadfast in our resolve to seek justice to the end and to keep communities safe.  This goal is achieved through collaborative investigative efforts with other law enforcement agencies,” said Thomas Noyes II, U.S. Postal Inspector in Charge of the Charlotte Division.

According to U.S. Attorney Horn, the charges and other information presented in court: In June 2014, agents from the DEA and U.S. Postal Inspection Service, investigating a drug trafficking organization that shipped drugs through the mail from Texas to Atlanta, identified a house in Chamblee that the organization was using as a drug storage and distribution hub.  Hamilton lived in the house and was frequently visited by other members of the organization, including Jones, who brought packages to the house.  On two separate occasions following package deliveries, agents stopped cars leaving the house and seized multiple kilogram quantities of cocaine and marijuana.

On a third occasion, agents observed several organization members, including Hamilton and Jones, gather at the house and drive away together in a caravan of four cars.  Agents stopped the caravan, but Jones sped away in his car while agents pursued him with the help of aerial surveillance.  Jones ultimately abandoned his car and was arrested after a brief foot chase. 

Agents seized 55 kilograms of marijuana, cash, and other drug trafficking materials from the four cars, then returned to the house and seized an additional four kilograms of marijuana, scales, a money counter, and other drug packaging materials from inside. 

During the course of the investigation, law enforcement seized approximately four kilograms of cocaine, six kilograms of methamphetamine, 75 kilograms of marijuana, seven handguns, a bullet proof vest, $65,200 in cash, and a stolen BMW with altered vehicle identification numbers. 

Walter Ray Hamilton, 35, of Stone Mountain, Georgia, was sentenced by U.S. District Judge Mark H. Cohen to six years, three months in prison to be followed by six years of supervised release for charges of conspiracy to possess with the intent to distribute controlled substances, and maintaining a place for distributing drugs within 1,000 feet of a school.  Hamilton was convicted on these charges on June 30, 2016, after he pleaded guilty.

James Robert Jones, a/k/a Sean Jones, 43, of Dallas, Georgia, was also sentenced by U.S. District Judge Mark H. Cohen to five years, ten months in prison to be followed by three years of supervised release for charges of conspiracy to possess with the intent to distribute controlled substances.  Jones was convicted on this charge on August 1, 2016, after he pleaded guilty.  Both Hamilton and Jones were sentenced on November 2, 2016.

Two other members of the organization have already been sentenced.  They are as follows:

• Kevin Michael Johnson, 41, of Lilburn, Georgia, previously was sentenced to six years, six months in prison to be followed by four years of supervised release for conspiracy to possess with the intent to distribute controlled substances in connection with his role as leader of the organization.  Johnson was convicted on January 5, 2016.

   

• Eric Swiney, 41, of Forest Park, Georgia, previously was sentenced to five years, ten months in prison to be followed by four years of supervised release for conspiracy to possess with the intent to distribute controlled substances in connection with his arrest with four kilograms of cocaine after leaving the organization’s house in Chamblee.  Swiney was convicted on February 9, 2016.

 

This case was investigated by the Drug Enforcement Administration and United States Postal Inspection Service, with invaluable support provided by the Georgia State Patrol.

Assistant United States Attorney Garrett L. Bradford prosecuted the case.

The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA – U.S. Attorney John Horn announced that Assistant U.S. Attorney (AUSA) William Toliver will lead the efforts of the Northern District of Georgia Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. 

AUSA Tolliver has been appointed to serve as the District Election Officer (DEO) for the Northern District of Georgia, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.

“Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud,” said U.S. Attorney Horn.  “The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”

The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur.  The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.

Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.  It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them.  For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law.  Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.

The franchise is the cornerstone of American democracy.  We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice.  In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, U.S. Attorney Horn stated that AUSA/DEO Toliver will be on duty in this District while the polls are open.  He can be reached by the public at the following telephone number: (404)581-6001.

In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day.  The local FBI field office can be reached by the public at (404) 679-9000.

Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to voting.section@usdoj.gov or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.

“Ensuring free and fair elections depends in large part on the cooperation of the American electorate.  It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division,” said U.S. Attorney Horn.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Kevin Ray Williamson, has been arraigned on federal armed bank robbery charges relating to a series of bank robberies that began on February 4, 2016, and continued until September 8, 2016.  Williamson was indicted by a federal grand jury on October 25, 2016.

“Williamson is alleged to have committed a series of armed bank robberies that kept bank employees and citizens on edge for over eight months,” said U. S. Attorney John Horn.  “The arrest and indictment in this case put an end to an active, eight-month crime spree, and hopefully returned a sense of safety to the community in Marietta, where most of the robberies occurred.”

“The FBI is proud of the outstanding work of its many agents, task force officers, and analytical personnel in getting the person believed to be responsible for these armed serial bank robberies identified and safely apprehended.   These robberies were particularly egregious in that many of the victim tellers had to endure having a handgun pointed directly at them.  The FBI will continue to make those who bring this type of violent crime into our communities a priority matter,” said George Crouch, Acting Special Agent in Charge, FBI Atlanta Field Office. 

According to U.S. Attorney Horn, the charges, and other information presented in court: On February 4, 2016, Williamson entered a Fifth Third Bank located in Marietta, Georgia.  Williamson is alleged to have pointed a handgun at a bank teller and demanded money from her cash drawer.  Bank surveillance video captured the robbery and showed Williamson carrying a messenger/computer type bag in which the demanded U.S. currency was placed.

• On April 1, 2016, Williamson is alleged to have entered a Regions Bank in Marietta, Georgia, while armed with a handgun.  Williamson approached the bank’s counter and pointed his handgun at the teller, opened his messenger bag and demanded cash.  The teller complied with Williamson’s demands and handed cash to him.  
• The surveillance photographs from the bank security system show that the person who robbed the Regions Bank was the same person who robbed the Fifth Third Bank in February, 2016. 
• On May 25, 2016, Williamson is alleged to have entered a BB&T Bank in Marietta, Georgia.  Williamson approached a bank teller, displayed a black handgun, and demanded cash.  The teller complied with the robber’s demands and gave cash to Williamson.  This robbery was also captured on surveillance video.
• On July 13, 2016, Williamson is alleged to have entered a PNC Bank in Marietta, Georgia.  Bank surveillance images show that as in the other robberies, Williamson was carrying a messenger/computer type bag and approached a bank teller, opened the bag and pointed a black handgun. The teller complied with Williamson’s demands and gave him cash.
• On August 22, 2016, Williamson is alleged to have entered Fidelity Bank located in Atlanta, Georgia.  Inside the bank, the robber pointed a gun at a teller, stated that he was robbing the bank and demanded money.  The teller complied and gave Williamson cash. 
• On September 8, 2016, Williamson is alleged to have entered Renasant Bank located in Johns Creek, Georgia.  He displayed a handgun and demanded money from several drawers. 

 

Kevin Ray Williamson, 51, of Marietta, Georgia, was arraigned before U.S. Magistrate Judge Janet F. King on October 26, 2016.  Williamson was indicted by a federal grand jury on October 25, 2016.

Members of the public are reminded that the indictment only contains charges.  The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.

This case is being investigated by the Federal Bureau of Investigation.

Assistant United States Attorney Suzette A. Smikle is prosecuting the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA – Veterinarian Michael Paul Good, owner of Town & Country Veterinary Clinic, located in Marietta, Georgia, has agreed to pay a civil settlement of $90,000 to resolve allegations that he violated the recordkeeping requirements of the Controlled Substances Act.  Dr. Good also has agreed to additional oversight from the DEA. 

“The illegal diversion of controlled substances from legitimate medical purposes is a problem facing our district and the nation,” said U.S. Attorney John Horn.  “To prevent the diversion of controlled substances, all DEA registrants, including veterinarians, must keep careful track of their controlled substances inventory.  The failure to do so may result in the imposition of significant civil monetary penalties.” 

Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division commented, “The owner of Town & Country Veterinary Clinic spun a web of deception when it failed to maintain accurate recordkeeping of its inventory. Such careless behavior allows for substances to be diverted and sold on the black market with no true measure of accountability. The pursuit of civil penalties is a proactive step that DEA Diversion and its federal, state and local partners can take to discourage other negligent medical entities from engaging in such behavior.”

The government alleges that Dr. Good, among other violations, failed to keep accurate records of controlled substances, failed to report thefts or losses of controlled substances, and failed to maintain controlled substances records properly at Town & Country Veterinary Clinic in Marietta, Georgia.  The claims settled are allegations only, and there has been no determination of liability.

Congress enacted the Controlled Substances Act, 21 U.S.C. §§ 801-904, to deter the illegal importation, manufacture, distribution, possession, and improper use of controlled substances, including prescription medications.  Under the Controlled Substances Act, individuals and entities registered with the DEA are required to maintain complete and accurate records of all controlled substances and security systems so that no controlled substances are lost, stolen, or inappropriately dispensed.  Violations of the recordkeeping requirements subject DEA registrants to civil monetary penalties of up to $14,502 for each violation.

This case was investigated by the Tactical Diversion Squad from the Drug Enforcement Administration, with assistance from the Georgia Drugs and Narcotics Agency and the Georgia Veterinary Board.

The civil settlement was reached by Assistant U.S. Attorney Lena Amanti.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Daniel Allen Days has been sentenced to nine years, seven months in prison for possession of five firearms as an eight-time convicted felon.  Days used a straw purchaser to obtain firearms, which he then planned to sell in New Jersey.

“Despite his eight prior felony convictions, Days was in possession of multiple firearms in order to illegally traffic the weapons to New Jersey,” said U. S. Attorney John Horn.  “This case shows both the dangers of having a repeat felon like Days in illegal possession of a firearm, and also how the use of straw purchasers contributes to the illegal trafficking of guns that head north from Georgia.” 

“Days is the poster child for tough federal sentencing for gun possession by convicted felons,” said George Crouch, Acting Special Agent in Charge (A/SAC), FBI Atlanta. “While serving this lengthy sentence, he will no longer pose a threat to anyone.”

According to U.S. Attorney Horn, the charges and other information presented in court: On February 11, 2015, Days was pulled over in a vehicle carrying five firearms, including an assault rifle with a high-capacity magazine in the trunk.  Days was transporting the firearms to New Jersey for sale.  Days had trafficked firearms to New Jersey on two prior occasions, but was thwarted on his third attempt after FBI surveillance exposed that he used a straw purchaser to obtain firearms earlier that day.  Text messages on Days’ cell phone showed he sent photos of numerous firearms, including multiple rifles with high-capacity magazines, to potential buyers.  

Daniel Allen Days, 39, of Atlanta, Georgia, was sentenced by U.S. District Judge Amy Totenberg to nine years, seven months in prison to be followed by three years of supervised release.  Days was convicted of these charges on July 27, 2016, after he pleaded guilty.

This case was investigated by the Federal Bureau of Investigation.

Assistant United States Attorney Jolee Porter prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA – Robert E. Windsor, an Atlanta-area physician, has been sentenced to federal prison for filing over $1.1 million in false claims for surgical monitoring services that he did not perform.

“Patients rightly expect that their physicians will protect their health and safety,” said U.S. Attorney John A. Horn.  “Windsor violated that basic trust and placed numerous surgery patients at risk at a time when they were most vulnerable and in need of care.  For over three years, he claimed that he had monitored the neurological health of patients during surgery when he actually had an unqualified medical assistant do the work.  Windsor then billed health insurers over $1 million for the services he never performed.”

“It is incomprehensible the lengths that some people will go to defraud our health care system,” said George Crouch, Assistant Special Agent in Charge, FBI Atlanta. “But even more reprehensible is the willingness of health care providers like Dr. Windsor, to thoughtlessly put patients’ health at risk to profit from the system.”

“In my many years of investigating health care fraud, Dr. Windsor’s utter disregard for patient safety and his extreme greed stand out.  His arrogance in billing for fraudulent services performed by an unqualified employee on patients undergoing surgery is truly shocking,” said Derrick L. Jackson, Special Agent in Charge for the HHS Office of Inspector General.  “Our agents, working with our law enforcement partners, strive to protect the well-being of patients and the government health programs designed to serve them.”

“This sentencing highlights the commitment of the Defense Criminal Investigative Service (DCIS) and its law enforcement partners to protect the integrity of the Department of Defense (DoD) health care program,” said Special Agent in Charge John F. Khin, Southeast Field Office.  “DCIS aggressively investigates health care providers that defraud the DoD, to preserve American taxpayer dollars intended to care for our Warfighters, their family members, and military retirees.”

According to U.S. Attorney Horn, the charges and other information presented in court:  Robert E. Windsor, a licensed Georgia physician, entered into a contract with American Neuromonitoring Associates, P.C. (ANA), a Maryland corporation, to provide a medical service called intra-operative monitoring.  During this medical procedure, a physician monitors a patient’s nerve and spinal cord activity during surgery to reduce potential adverse effects to the patient.  The monitoring physician observes the surgery online and communicates with the surgeon in the operating room who is performing the surgery.

Windsor was responsible for providing a monitoring report at the conclusion of each surgery, and ANA and its sister company would then bill patients and health insurance companies for the monitoring.  Windsor was paid a fee for each surgery monitored.  

Between January 2010 through July 2013, Windsor had an unqualified medical assistant monitor surgeries for him, using Windsor’s log-in credentials to make it appear as if he was monitoring the surgeries when he was not.  The medical assistant was not a doctor and was not permitted to perform the monitoring services.  Windsor submitted monitoring reports falsely stating that he had conducted the monitoring, which ANA and its sister company relied on in billing health insurers for his services.  On several occasions, Windsor billed ANA for monitoring services he supposedly performed when he was actually on a plane traveling internationally.

In total, after collecting reimbursements from insurers, ANA paid Windsor over $1.1 million for monitoring services he did not perform.  Investigators uncovered Windsor’s fraud through analysis of Medicare billing data and complaints to the HHS-OIG Hotline at 800-HHS-TIPS.

Robert E. Windsor, 55, of Cumming, Georgia, was sentenced by U.S. District Court Judge Amy Totenberg to three years, two months in prison and three years of supervised release.  He was ordered to serve 200 hours of community service, and to pay $1,169,580 in restitution to health insurers.

This case was investigated by the Federal Bureau of Investigation; the Department of Defense, Defense Criminal Investigative Service; and the Department of Health and Human Services, Office of the Inspector General.

Assistant United States Attorneys Stephen H. McClain and Nathan P. Kitchens prosecuted the case.  Former Assistant United States Attorney Jamie L. Mickelson prosecuted the case prior to Windsor’s guilty plea.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.

ATLANTA - George H. Bell, former Georgia Department of Transportation (“G-DOT”) Assistant Area Maintenance Foreman, was sentenced today to four and a half years’ imprisonment for accepting bribe payments in exchange for allowing more than 2,600 dump truckloads of unsuitable dirt to be dumped in DeKalb County, resulting in substantial environmental damage and more than $1.5 million in clean-up costs.

“For less than $15,000 in bribes, Bell abused his supervisory position with the G-DOT by allowing others to dump massive amounts of unsuitable dirt throughout DeKalb County,” said U.S. Attorney John A. Horn. “Bell’s greed and willingness to compromise the trust of his public office has left all Georgians with environmental damage and a clean-up tab of more than $1.5 million.”

“This case serves as a reminder that public corruption has consequences. The consequences for Mr. Bell in betraying the public’s trust and violating established regulations and policy is a lengthy federal prison sentence.  The consequences for the public in which Mr. Bell was supposed to have been serving is $1.5 million in unanticipated and non-budgeted clean-up costs,” said George Crouch, Acting Special Agent in Charge, FBI Atlanta Field Office.

“It is paramount that public officials committing crimes be held accountable for their actions.  The investigation and prosecution of public corruption is a priority for the Georgia Bureau of Investigation.  The GBI will continue to work with our state and federal partners to ensure that public corruption cases are aggressively pursued,” said Vernon Keenan, Director, Georgia Bureau of Investigation.

“Georgia DOT has cooperated fully with all agencies involved in the investigation to ensure that those responsible for illegal actions are held accountable,” said Commissioner Russell McMurry. “We are appalled by the corrupt actions of this individual that in no way reflect the hard work and commitment displayed by more than 4,100 GDOT employees. We have worked diligently to correct the damage to the impacted sites.”   

According to U.S. Attorney Horn, the charges and other information presented in court: Bell worked for G-DOT for approximately 15 years. By the end of his career, Bell served G-DOT in a supervisory role as an Assistant Area Maintenance Foreman. In that capacity, Bell oversaw various maintenance projects under the control of G-DOT, including repairs of Georgia roadway system and general maintenance activities.

From approximately April to December 2014, Bell accepted cash bribe payments from the owners of a dirt hauling company (“Dirt Company”). In exchange for those bribe payments, Bell allowed the Dirt Company to dump unsuitable dirt at various G-DOT locations in DeKalb County, Georgia. Unsuitable dirt is dirt that has been removed during construction or landscaping projects that cannot be built upon in the future. In this case, the dirt contained construction debris, including nails, concrete and asphalt fragments, and various pieces of metal.

In April 2014, the Dirt Company asked Bell if G-DOT would accept multiple loads of dirt. Bell allowed the unsuitable dirt to be dumped at G-DOT site, but then charged the Dirt Company $600 to dump the dirt. Bell used G-DOT personnel and equipment to spread the dirt after the Dirt Company had dumped it. After that, Bell and the Dirt Company agreed that the Dirt Company would pay Bell $5 per load (if the Dirt Company spread the dirt itself) and $7 per load (if Bell used G-DOT personnel and equipment to spread the dirt). For several months thereafter, Bell accepted bribe payments from the Dirt Company in exchange for allowing it to dump illegally unsuitable dirt at G-DOT locations. In total, the Dirt Company paid Bell almost $15,000 in bribe payments.

Bell allowed the Dirt Company to dump over 2,600 dump truck loads of unsuitable dirt at the G-DOT sites located at: (1) Stone Mountain Highway and Hugh Howell Road, in Stone Mountain; (2) North Decatur Road and I-285, in DeKalb County; (3) 805 George Luther Drive, in DeKalb County; and (4) Chamblee Dunwoody Road and I-285, in DeKalb County. Overall, Bell permitted over 30,000 cubic yards of dirt to be dumped at the G-DOT sites. Unfortunately, Bell also allowed the Dirt Company to dump some dirt in a protected wetland and at a location where the dirt entered Stone Mountain Lake.  Based on the massive amount of unsuitable dirt that Bell allowed to be dumped, the clean-up costs associated with his criminal acts exceeded $1.5 million.

On April 15, 2016, Bell, 50, of Lithonia, Georgia, pleaded guilty to conspiring to accept bribes. He was sentenced to four years, six months in prison, followed by three years of supervised release and was ordered to pay $1,553,184 in restitution.

This case was investigated by the Federal and Georgia Bureaus of Investigation.

Assistant United States Attorney Jeffrey W.  Davis and former Assistant United States Attorney Jamie L. Mickelson prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA – A major U.S. hospital chain, Tenet Healthcare Corporation, and two of its Atlanta-area subsidiaries will pay over $513 million to resolve criminal charges and civil claims relating to a scheme to defraud the United States and to pay kickbacks in exchange for patient referrals 

In addition, two Tenet subsidiaries, Atlanta Medical Center Inc. and North Fulton Medical Center Inc., have agreed to plead guilty to conspiracy to defraud the United States and to pay health care kickbacks and bribes in violation of the Anti-Kickback Statute (AKS).  The plea agreements remain subject to acceptance by the court.  Up until April 2016, Atlanta Medical Center Inc. and North Fulton Medical Center Inc. owned and operated acute-care hospitals located in the greater Atlanta metropolitan area. 

“Our Medicaid system is premised on a patient’s ability to make an informed choice about where to seek care without undue interference from those seeking to make a profit,” said U.S. Attorney John Horn.  “Tenet cheated the Medicaid system by paying bribes and kickbacks to a pre-natal clinic to unlawfully refer over 20,000 Medicaid patients to the hospitals.  In so doing, they exploited some of the most vulnerable members of our community and took advantage of a payment system designed to ensure that underprivileged patients have choices in receiving care.”

“When pregnant women seek medical advice, they deserve to receive care untainted by bribes and illegal kickbacks,” said Principal Deputy Assistant Attorney General Bitkower.  “The Tenet case is the first brought through the assistance of the Criminal Division’s corporate health care fraud strike force.  This is one of more than a dozen active corporate investigations by the strike force, and we are committed to following evidence of health care fraud wherever it leads – whether it be individual physicians, pharmacy owners or corporate boardrooms.”

“The Department of Justice continues to devote enormous resources to exposing and pursuing alleged misconduct of improper financial relationships between hospitals and referral sources,” said Principal Deputy Assistant Attorney General Mizer.  “Such relationships exploit vulnerable populations and threaten to drive up the cost of healthcare for everyone.  In addition to yielding a substantial recovery for taxpayers, this settlement reflects the department’s lack of tolerance for these types of abusive arrangements, and the negative effects they can have on our health care system.”   

“The global resolution of this complex and sophisticated fraud scheme exemplifies what can be accomplished through the cooperation of federal and state investigative and prosecutorial authorities,” said U.S. Attorney Peterman.  “I am particularly proud of the civil attorneys in the U.S. Attorney’s Office for the Middle District of Georgia, working hand in hand with investigators of the U.S. Department of Health and Human Services and attorneys in the Civil Division and the Medicaid Fraud Control Unit of the Office of the Attorney General of Georgia, whose combined efforts greatly contributed to this outstanding result on behalf of the American taxpayers.”

“Tenet took advantage of vulnerable pregnant women in clear violation of the law by paying kickbacks in order to bring their referrals to Tenet hospitals,” said Georgia Attorney General Olens.  “Through this scheme, Tenet defrauded the Georgia Medicaid program, and reaped hundreds of millions of dollars.  This is an unprecedented settlement for the state of Georgia, and reflects my office’s commitment to protecting Georgia taxpayers by uncovering Medicaid fraud and abuse.”

“The FBI continues to play a significant role in ensuring that federal laws related to the healthcare industry, to include the federally funded Medicare and Medicaid programs, are enforced,” said Acting Special Agent in Charge George Crouch.  “The settlement agreements announced today involving Tenet Healthcare Corporation, as well as related guilty pleas by two of its Atlanta-based hospitals, Atlanta Medical Center Inc., and North Fulton Medical Center Inc., are a clear example of those efforts.  In addition, the FBI’s Major Provider Response Team (MPRT) assisted the Atlanta Field Office in the civil and criminal investigation of Tenet.  The MPRT was created in 2011 in response to numerous healthcare related corporate-level schemes resulting in billions in losses to healthcare plans.  The FBI, along with its MPRT, will continue to aggressively address the threat of large-scale corporate healthcare schemes significantly impacting both private and government healthcare benefit plans.”

“OIG continues to emphasize investigation of improper financial relationships between health care providers,” said Special Agent in Charge Jackson.  “Using their positions of trust, health providers – after receiving payments from Tenet – sent expectant women specifically to Tenet hospitals.  Patients were often directed to Tenet facilities miles and miles from their homes and on their journeys passed other hospitals that could have provided needed care.  These women were thereby placed at increased risk during one of the most vulnerable points in their lives.  HHS-OIG will continue to protect patients by exposing such illegal arrangements.”     

Atlanta Medical Center Inc. and North Fulton Medical Center Inc. were charged in a criminal information filed today in federal court in Atlanta with conspiracy to defraud the United States by obstructing the lawful government functions of HHS and to violate the AKS, which, among other things, prohibits payments to induce the referral of patients for services paid for by federal health care programs.  The two Tenet subsidiaries have agreed to plead guilty to the charges alleged in the criminal information and will forfeit over $145 million to the United States – which represents the amount paid to Atlanta Medical Center Inc. and North Fulton Medical Center Inc. by the Medicare and Georgia Medicaid programs for services provided to patients referred as part of the scheme. 

Tenet Health System Medical Inc. and its subsidiaries (collectively THSM) entered into a non-prosecution agreement (NPA) with the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Northern District of Georgia related to the charges in the criminal information.  THSM is the parent company of Atlanta Medical Center Inc., North Fulton Medical Center Inc., Spalding Regional Medical Center Inc. and Hilton Head Hospital, and employed their executives.  THSM is a subsidiary of Tenet Healthcare Corporation.  Under the terms of the NPA, THSM and Tenet will avoid prosecution if they, among other requirements, cooperate with the government’s ongoing investigation and enhance their compliance and ethics program and internal controls.  Tenet has also agreed to retain an independent compliance monitor to address and reduce the risk of any recurrence of violations of the AKS by any entity owned in whole, or in part, by Tenet.  The term of THSM’s and Tenet’s obligations under the NPA is three years, but the NPA may be extended for up to one year. 

In the civil settlement, Tenet agreed to pay $368 million to the federal government, the state of Georgia and the state of South Carolina to resolve claims asserted in United States ex rel. Williams v. Health Mgmt. Assocs., Tenet Healthcare, et al., a lawsuit filed by Ralph D. Williams, a Georgia resident, in the Middle District of Georgia, under the federal and Georgia False Claims Acts.  The acts permit whistleblowers to file suit for false claims against the government entities and to share in any recovery.  The federal share of the civil settlement is $244,227,535.30, the state of Georgia will recover $122,880,339.70 and the state of South Carolina will recover $892,125.  Mr. Williams’ share of the combined civil settlement amount is approximately $84.43 million.

As alleged in the criminal information as well as civil complaints filed by the department and the state of Georgia in 2014 and 2013, Atlanta Medical Center Inc., North Fulton Medical Center Inc., Spalding Regional Medical Center Inc. and Hilton Head Hospital paid bribes and kickbacks to the owners and operators of prenatal care clinics serving primarily undocumented Hispanic women in return for the referral of those patients for labor and delivery medical services at Tenet hospitals.  These kickbacks and bribes allegedly helped Tenet obtain more than $145 million in Medicaid and Medicare funds based on the resulting patient referrals.

According to the criminal information, as part of the scheme, expectant mothers were in some cases told at the prenatal care clinics that Medicaid would cover the costs associated with their childbirth and the care of their newborn only if they delivered at one of the Tenet hospitals, and in other cases were simply told that they were required to deliver at one of the Tenet hospitals, leaving them with the false belief that they could not select the hospital of their choice.  The criminal information alleges that as a result of these false and misleading statements and representations, many expectant mothers traveled long distances from their homes to deliver at the Tenet hospitals, placing their health and safety, and that of their newborn babies, at risk. 

The criminal information also charges Atlanta Medical Center Inc. and North Fulton Medical Center Inc. with conspiring to defraud HHS in its administration and oversight of the Medicare and Medicaid Programs, including HHS-OIG’s enforcement of Tenet’s September 2006 corporate integrity agreement (the CIA).  The criminal information and the civil complaint allege that many of the unlawful payments happened while Tenet was under the CIA.  The criminal information further alleges that certain executives of Atlanta Medical Center Inc., North Fulton Medical Center Inc. and others concealed these unlawful payments from HHS-OIG during the pendency of the CIA by, among other things, falsely certifying compliance with the requirements of the CIA and failing to disclose reportable events relating to the unlawful relationship under the CIA.  

* * *

Randy S. Chartash, Chief of Economic Crime, and Stephen H. McClain, Deputy Chief of Economic Crime, of the U.S. Attorney’s Office of the Northern District of Georgia, and Deputy Chief Joseph S. Beemsterboer, Assistant Chief Robert A. Zink, and Trial Attorneys Sally B. Molloy, Antonio M. Pozos and A. Brendan Stewart of the Criminal Division’s Fraud Section represented the government in the criminal prosecution.

The FBI’s Atlanta Field Office, HHS-OIG and the FBI Healthcare Fraud Unit MPRT investigated the case. 

The criminal information also charges Atlanta Medical Center Inc. and North Fulton Medical Center Inc. with conspiring to defraud HHS in its administration and oversight of the Medicare and Medicaid Programs, including HHS-OIG’s enforcement of Tenet’s September 2006 corporate integrity agreement (the CIA).  The criminal information and the civil complaint allege that many of the unlawful payments happened while Tenet was under the CIA.  The criminal information further alleges that certain executives of Atlanta Medical Center Inc., North Fulton Medical Center Inc. and others concealed these unlawful payments from HHS-OIG during the pendency of the CIA by, among other things, falsely certifying compliance with the requirements of the CIA and failing to disclose reportable events relating to the unlawful relationship under the CIA.

This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of HHS.  The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.  One of the most powerful tools in this effort is the False Claims Act.  Since January 2009, the Justice Department has recovered a total of more than $30.9 billion through False Claims Act cases, with more than $18.6 billion of that amount recovered in cases involving fraud against federal health care programs.

If you believe you are a victim of this offense, please visit this website or call (888) 549-3945.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga

ATLANTA - Lloyd Nathaniel Joyner, a/k/a Zulu, a/k/a Zu, and Dave Montonio Sturgis, Jr., have been convicted in federal district court in connection with a string of armed, drug store robberies in Atlanta and Cobb County, Georgia, in May and June 2015.

“These armed robbers stormed into businesses terrorizing the employees inside,” said U.S. Attorney John Horn. “Through the hard work of the local police, the GBI and the FBI, law enforcement stopped this violent robbery crew, helping to make our community safer.”

“The armed robbery convictions of these two men in federal court signal not only a victory for those many agents and officers working long hours on this matter, but also for those citizens terrorized by their violent robberies. These convictions hold both Joyner and Sturgis fully accountable for their unbridled criminal conduct that spanned several metro Atlanta jurisdictions and their future now rests with a federal judge as they await sentencing,” said George Crouch, Acting Special Agent in Charge, FBI Atlanta Field Office.

“This conviction illustrates the great work of law enforcement in investigating and prosecuting armed robberies in Georgia.  The Georgia Bureau of Investigation remains committed to working with our local and federal partners to pursue these vicious crimes,” said Vernon Keenan, Director, Georgia Bureau of Investigation.

“I am pleased with the efforts of several law enforcement agencies working together to bring two violent criminals to justice,” said Randy Johnson, Chief of the Lawrenceville Police Department.  Johnson emphasized the need for agencies to work together and share information in order to stop violent crime – “Criminals do not recognize jurisdictional limits, nor do they confine their activities to a single jurisdiction,” he said.  He also praised the work of Lawrenceville Police detective Justin Hipps, who recognized the similarity in crimes occurring across metro-Atlanta.  Detective Justin Hipps first noticed the robberies were related and put together a task force to solve the incidents.  “Detective Hipps did a great job to bring agencies together to share information.  We are proud of his tenacious efforts in investigating these crimes,” said Johnson.

According to U.S. Attorney Horn, the charges and other information presented at trial: Joyner and Joseph Stowers, who pleaded guilty prior to the trial, robbed CVS and Walgreens drug stores in Marietta, Smyrna, and Atlanta in May and June 2015.  During the robberies, the men were dressed in black, hooded sweatshirts, their faces were masked, and they brandished semiautomatic pistols.  They burst into the drug stores near closing time or, in the case of 24-hour stores, after midnight, when the stores were empty. They terrorized the employees by rounding them up and taking them to the store office, demanding that the manager open the store safe while the other employees were kept face-down on the floor. In some robberies, the robbers were limited to taking cash from cash registers. They also took the wallets and cell phones of several employees during the robberies, and then fled.

Joyner was convicted of robbing a CVS in Marietta on May 27, 2015; a CVS in Atlanta on June 4, 2015; and a CVS in Smyrna also on June 4th. 

Sturgis joined the robbery crew in mid-June as the driver, and he also went inside the stores before the robberies to scout the target locations. Joyner and Sturgis were convicted of robbing a Walgreens in Smyrna on June 16, 2015; a Walgreens in Marietta on June 18, 2015; and a CVS also in Marietta on June 19, 2015.

Joyner and Sturgis were also convicted on September 27, 2016, of aiding and abetting each other in the brandishing of firearms in the robberies on June 16, 18, and 19, 2015. FBI agents and task force officers arrested Joyner and Sturgis outside of another CVS in Marietta on June 24, 2015. 

Sentencing for Lloyd Nathaniel Joyner, a/k/a Zulu, a/k/a Zu, 25, of College Park, Ga., and Dave Montonio Sturgis, Jr., 25, of College Park, Ga., has not yet been scheduled.

This case was investigated by the Federal Bureau of Investigation, the Georgia Bureau of Investigation, and the Lawrenceville, Smyrna, Marietta, and Cobb County police departments.

Assistant U.S. Attorneys Mary Webb and William Traynor are prosecuting the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga

ATLANTA – Branch, Banking & Trust Company (“BB&T”) has agreed to pay the United States $83 million to resolve allegations that it violated the False Claims Act by falsely certifying that it had complied with critical underwriting and quality control (“QC”) requirements when originating “FHA loans” – i.e., loans insured by the Federal Housing Administration (“FHA”), which is part of the U.S. Department of Housing and Urban Development (“HUD”).  In truth, BB&T, over an extended period of time, had failed to comply with key HUD underwriting and QC requirements. HUD only extends insurance to loans where the borrower is creditworthy and demonstrates the ability to repay the loan based upon the FHA’s underwriting standards.

“While profiting from the FHA program, BB&T exposed the taxpayers to losses by failing to comply with HUD guidelines, and then took the additional step of falsely certifying that it had complied with such guidelines” said John A. Horn, the U.S. Attorney for the Northern District of Georgia.  “This settlement recovers substantial losses caused by BB&T’s decision to place its own profits above its commitment to adhere to HUD underwriting and quality control requirements.”

“The FHA program depends on Direct Endorsement Lenders endorsing only eligible loans for FHA mortgage insurance, and complying with HUD’s quality control requirements,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.  “Lenders like BB&T that participate in the FHA program must make adherence to the FHA program rules a priority.  The Department has and will continue to hold accountable those lenders that prioritize profits over program compliance.”

“Lenders are required to apply FHA’s standards to each mortgage loan we insure and to honestly certify to us that they’ve done so,” said Associate General Counsel Dane M. Narode for HUD’s Program Enforcement.  “Today’s settlement reminds all lenders that sound underwriting is the bedrock of a healthy housing market and the financial futures of homeowners we support.”

“Today’s settlement agreement resolves allegations that BB&T, entrusted by American taxpayers to comply with FHA regulations, failed to conform with certain FHA origination, underwriting and quality control requirements,” said Inspector General David A. Montoya for HUD.  “This settlement demonstrates a continued commitment to address the failures and halt the business practices that potentially harm the FHA program and its participants.”

Between January 2006 and January 2012, BB&T participated in the FHA insurance program as a Direct Endorsement Lender (“DE Lender”).  As a DE Lender, BB&T had the authority to originate, underwrite, and endorse mortgages for FHA insurance.  If a DE Lender such as BB&T approves a mortgage loan for FHA insurance, and the loan later defaults, the holder of the loan may submit an insurance claim to the Government to recover its losses on the loan.

Under the DE Program, the Government does not review a loan before it is endorsed for FHA insurance.  Instead, FHA and HUD rely upon DE Lenders to follow program rules, which require that a lender: (1) adhere to HUD underwriting guidelines; (2) maintain a QC program that can identify and correct deficiencies in their underwriting practices; and (3) self-report to HUD materially deficient loans identified by their QC program, or otherwise. 

The settlement announced today resolves allegations that BB&T failed to comply with FHA origination, underwriting, and QC requirements.  As part of the settlement, BB&T admitted to the following facts: 

• Between January 1, 2006 and September 30, 2014, BB&T certified for FHA insurance mortgage loans that did not meet HUD underwriting requirements and did not adhere to HUD’s QC requirements.  BB&T significantly increased its loan volume between 2006 and 2009 – more than doubling all loan originations, while increasing the number of FHA insured loans six fold.  This increase in volume was accompanied by an increase in the number of loans internally rated “Serious-Marketability” – the most significant BB&T QC defect rating, and a defect that rendered a loan ineligible for FHA insurance.  Between 2007 and 2011, the percentage of loans underwritten by BB&T each year that were rated Serious-Marketability by its QC department always exceeded 30 percent, and exceeded as much as 50 percent in 2010 and 2011.  BB&T nevertheless endorsed many of these loans for FHA insurance and, if they defaulted, sought payment from HUD for the insured loans.

 

• The monthly reviews and reports that BB&T’s QC department shared with management alerted BB&T to deficiencies in many of its FHA loans.  A 2010 BB&T internal memorandum stated that “increased volume of FHA requests and changes to regulatory requirements have resulted in origination, processing and underwriting errors.  Some employees are not applying current and accurate FHA guidelines.”  A proposal to improve BB&T’s underwriting of FHA loans with additional training as well as a testing and certification process for underwriters was prepared in 2010, but neither recommendation was implemented until after 2014.

 

• Additionally, between 2006 and 2014, BB&T’s QC process did not satisfy certain FHA requirements.  Although loan volume more than doubled from 2006 to 2009, the number of QC employees remained the same.  The QC department requested additional employees in 2009, yet new employees were not added until 2013.  Because BB&T’s QC department did not have adequate staff, it instituted a cap on the number of loans it reviewed.  As a result, between 2009 and 2014, the QC department did not always review the number of loans necessary to comply with HUD’s loan review sampling requirements.  Additionally, BB&T did not perform reviews of its lender branch offices, as required by HUD, before beginning the reviews again in late 2014.

 

• Finally, since at least 2006, HUD has required self-reporting.  However, despite internal ratings showing that 30 percent or more of the loans underwritten by BB&T between 2007 and 2011 had Serious-Marketability findings, and were thus ineligible for FHA insurance, BB&T did not self-report any loans containing material underwriting defects until 2013.

   

BB&T’s conduct caused FHA to insure hundreds of loans that were not eligible for insurance and, as a result, FHA suffered substantial losses when it later paid insurance claims on those loans.

Assistant United States Attorneys David A. O’Neal and Paris A. Wynn handled this matter for the U.S. Attorney’s Office.

The investigation of the allegations in the Government’s complaint was a coordinated effort between the Civil Division of the Department of Justice, the U.S. Attorney’s Office for the Northern District of Georgia, HUD, and HUD’s Office of Inspector General.  The claims asserted against BB&T are allegations only, and there has been no determination of liability.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.

ATLANTA – The Office of Justice Programs’ Bureau of Justice Assistance awarded grants totaling $499,899 to create safer neighborhoods through a reduced in gang violence and gun crime.  The awards are funded under the 2016 Violent Gang and Gun Crime Reduction (Project Safe Neighborhoods) Program.  The goal of PSN is to create safer neighborhoods by focusing on in gang violence and gun crime.

“Gang violence and gun crime are two of the most formidable obstacles we face in ensuring that every American lives in safe and secure communities,” said U.S. Attorney General Loretta E. Lynch. “These vital grants give jurisdictions the resources they need to develop comprehensive, collaborative responses to the most serious and destructive crimes.  By combining more effective enforcement with closer cooperation, better data and expanded prevention initiatives, Project Safe Neighborhoods helps communities make meaningful strides towards ending violence, promoting peace, and restoring hope.”

“The PSN grant will enable the DeKalb Task Force to implement a multi-faceted approach to reduce gang violence and gun-related crimes,” said U.S. Attorney John Horn.  “The Task Force’s collaborative approach, which relies on the expertise of our federal, state and local law enforcement partners as well as key community leaders, will help communities that struggle with gang and gun violence to implement meaningful and proven anti-gang and anti-violence measures.”

The program’s effectiveness is based on a cooperative approach and unified strategies led by the U.S. Attorney, a collaborative PSN task force of federal, state, and local law enforcement, community members, and other key partners.  The partners work to implement gang crime and gun violence enforcement, intervention, and prevention initiatives, using data and research with a local research partner.

The U.S. Attorney’s Office DeKalb PSN Task Force will implement a highly refined and proven strategy to mitigate gun and gang violence within three target areas in DeKalb County including Brookhaven, Chamblee, and the South DeKalb County area.  The grant funds also will help the task force agencies exchange intelligence information with other agencies in the Atlanta area.

The 2016 DeKalb PSN Task Force is comprised of the DeKalb County, Brookhaven, and the Chamblee Police Departments.  The Task Force will develop and enhance initiatives focusing on crime suppression, education, and prevention.  The law enforcement partners will form a Gang Task Force that will work jointly in each of the three jurisdictions.  In conjunction with the DeKalb County District Attorney’s Office, training will be conducted for officers on gang recognition and on best practices for compiling evidence for successful gang prosecutions. 

Additionally, Rehoboth Baptist Church in Tucker, Georgia, will provide training on a variety of topics to youth in the target areas, and will conduct community outreach to build strong and lasting relationships within the communities.  The outreach programs are designed to closely implement the recommendations of the President’s 21st Century Task Force on Policing, and specifically the Implementation Guide issued by the Department of Justice last year. 

The efforts of the PSN Task Force will be guided by data collected by members of the task force, and analyses of that data conducted by Applied Research Services, Inc., a national consulting firm based in Atlanta that has extensive experience and a proven track record with PSN initiatives. 

“We're excited and honored to participate with all partners involved in this grant to assist us in the reduction of violent crime and making our areas safer for our residents and businesses,” said Gary Yandura, Chief of Police, City of Brookhaven, Georgia.

“We look forward to working with our partners in this initiative to make our communities safer,” said Donny Williams, Chief of Police, Chamblee, Georgia, Police Department.

“We are grateful for the U.S. Attorney's Office for the Northern District of Georgia and their desire to improve our neighborhoods through local partnerships,” said Dr. Troy Bush, Senior Pastor, Rehoboth Baptist Church.  “This grant and the partnership of federal, state, and local law enforcement along with community partners invests resources in one of the greatest law enforcement needs we have—crime prevention. This initiative is a strategic and timely effort that will make our neighborhoods and communities safer.”

Each applicant addressed the required PSN design features in its application: (1) Partnerships; (2) Strategic Planning, Crime Analysis, and Research Integration; (3) Training; (4) Outreach; and (5) Accountability and Data-Driven efforts.

In addition to the three participating police departments, the DeKalb County District Attorney’s office and Peace Baptist Church in Decatur, Georgia, made invaluable contributions to the grant application.

The Office of Justice Programs (OJP) provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice, and assist victims. OJP has six bureaus and offices: The Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime, and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART). More information about OJP and its components can be found at www.ojp.gov.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Anthony Lepore, John Rife, and Brian Domalik, the former President, Regional Vice President, and Division Manager for Rite Way Service, Inc., were convicted by a federal jury yesterday on conspiracy, bribery and honest services fraud charges after a nearly two-week jury trial.  The charges were brought in connection with a multi-year scheme to bribe a public official who was employed with DeKalb County government and the Georgia World Congress Center Authority.

“This case highlights how public corruption offenses harm our communities —you have greedy company executives who seek an unfair advantage over their competitors, and a crooked public official who is willing to sell their power for personal gain,” said U.S. Attorney John Horn.  “The victims are spread throughout the community, from the citizens who often end up paying more for government services provided by the corrupt company and suffer the loss of honest government, as well as other companies that try to make their living ethically.  The people of DeKalb County and the State of Georgia deserved better.”

“This case and the resulting convictions of these three corporate executives not only illustrates the problems regarding public corruption, but also law enforcement’s very focused and deliberate efforts in addressing it.  The FBI, along with its law enforcement partners and federal prosecutors, will not tolerate those who interfere with or unduly influence the established and proper procedures of our public officials and the offices that they represent.  We ask anyone with information regarding public corruption matters to immediately contact their nearest FBI field office,” said George Crouch, Acting Special Agent in Charge, FBI Atlanta Field Office.

According to U.S. Attorney Horn, the charges and other information presented in court:  Lepore was the President and CEO of Rite Way Service, Inc., an Alabama-based company that sought to do business with both DeKalb County and the Georgia World Congress Center Authority (GWCCA), a state government entity that manages the Georgia World Congress Center, the Georgia Dome, Atlanta’s Centennial Olympic Park, and other properties.  Rife was the Rite Way Regional Vice President who oversaw the company’s Georgia Division, based in Norcross, Georgia.  Domalik was the Division Manager in charge of Rite Way’s Georgia Division between 2010 and 2014. 

Beginning in the summer of 2005, Lepore, Rife, and Domalik’s predecessor as Division Manager of Rite Way’s Georgia Division, Cecil Clark, conspired to bribe Patrick Jackson, a public official who was simultaneously working full time as a contracting official for DeKalb County and the GWCCA, in connection with janitorial services contracts with those government entities.  The government contracts were worth millions of dollars.  The bribes amounted to over $100,000 in payments for Jackson’s rent, utilities, and a garage lease for a luxury apartment over a 6-year period in downtown Atlanta, as well as cash payments, over $24,000 in furniture for the apartment, a $5,100 deposit for event space for a party that that Jackson threw at the Waverly Renaissance Hotel, and other benefits.  Domalik joined the conspiracy in late 2010, when Clark resigned from Rite Way, and continued the scheme with Lepore and Rife through 2012.

In exchange for the payments and other benefits from Rite Way, Jackson used his official position as a public official to help Rite Way win, maintain and increase profits from multi-year janitorial services contracts with DeKalb County and the GWCCA worth millions of dollars.

Jackson, 55, of Loganville, Georgia, was indicted by a federal grand jury on September 9, 2014 on one count of conspiracy to commit honest services fraud, and nine counts of honest services fraud.  Jackson pleaded guilty to one count of conspiracy, and on August 12, 2015, he was sentenced to four years, three months in federal prison, ordered to pay restitution to DeKalb County and GWCCA, and fined $20,000.

Clark, 55, of Jonesboro, Georgia, agreed to waive indictment and pleaded guilty to a Criminal Information charging him with conspiracy to commit bribery on May 26, 2015.  Clark was sentenced on September 30, 2015 to serve one year, five months in federal prison, ordered to pay restitution to DeKalb County and GWCCA, and fined $20,000.

Lepore, 64, of Birmingham, Alabama, Rife, 66, of Cumming, Georgia, and Domalik 49, of Kennesaw, Georgia, were each convicted on one count of conspiracy, ten counts of honest services fraud, and five counts of bribery. 

A sentencing date has not yet been scheduled.

This case is being investigated by Special Agents of the Federal Bureau of Investigation.  Valuable assistance was also provided by Special Agents of the Georgia Bureau of Investigation.

Assistant United States Attorneys Kamal Ghali and David M. Chaiken are prosecuting the case.  Former Assistant United States Attorney Jamie L. Mickelson previously prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA – The government has intervened in a False Claims Act lawsuit against Energy & Process Corporation (“E&P”), of Tucker, Georgia, alleging that E&P knowingly failed to perform required quality assurance procedures and supplied defective steel reinforcing bars (“rebar”) in connection with a contract to construct a Department of Energy (“DOE”) nuclear processing facility, the Justice Department announced today.

“To ensure that the nuclear facility would be safe, the Government paid E&P a sizable premium for exhaustive quality control procedures,” said U.S. Attorney John Horn of the Northern District of Georgia.  “This lawsuit alleges that E&P intentionally failed to perform the quality control work, and then concealed its failing by providing false certifications to the government.  In intervening in this lawsuit, the U.S. Attorney’s Office seeks to ensure that entities that defraud the Government are identified and held responsible.”

“The Department of Justice is committed to ensuring that construction suppliers who are paid a premium to meet high safety standards actually supply the goods and perform the work for which they are paid,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.  “When contractors cut corners, they not only cheat American taxpayers, but they also can put public safety at risk, particularly when their misconduct affects a facility that houses and processes nuclear materials.” 

The lawsuit alleges that, although the DOE – in connection with the construction of the Mixed Oxide Fuel Fabrication Facility at the DOE’s Savannah River Site near Aiken, South Carolina – paid E&P a premium to supply rebar meeting the stringent quality assurance standards promulgated by the United States Nuclear Regulatory Commission (“NRC”), E&P failed to perform most of the necessary quality assurance work, and then concealed this failing by falsely certifying that the quality assurance requirements had been met.  As a result, one-third of the rebar supplied by E&P and used in the construction was found to be defective.

The lawsuit was filed by Deborah Cook, a former employee of the prime contractor building the DOE facility, under the qui tam, or whistleblower, provisions of the False Claims Act.  Under the act, private citizens can bring suit on behalf of the government for false claims and share in any recovery.  The act permits the government to intervene in such lawsuits, as it has done in this case.  Defendants found liable under the act are subject to treble damages and penalties. 

This matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Offices of the Northern District of Georgia and the District of South Carolina, and the DOE’s Office of Inspector General.

The case is captioned United States ex rel. Cook v. Shaw Areva Mox Services, LLC, et al., Case No. 01:13-cv-4023 (N.D. Ga.). 

The claims asserted against E&P are allegations only, and there has been no determination of liability. 

This matter is being handled by Assistant United States Attorneys Paris A. Wynn and Gabriel Mendel.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.

NEWNAN, Ga. - Tony Anthony Goodman has been sentenced on charges of dealing firearms without a license, felon in possession of a firearm, possession of sawed off shotguns, and possessing with intent to distribute cocaine and the drug commonly known as “Molly.”

“Goodman repeatedly broke the law by possessing and distributing drugs and firearms, even after having been convicted of a felony on a previous occasion,” said U. S. Attorney John Horn.  “Guns that are trafficked illegally often turn up in other criminal offenses and place citizens and police alike in danger.”

“The criminal history of the defendant, Tony Goodman, shows a complete and utter disregard for the lives of others residing in our community,” said ATF Acting Special Agent in Charge James Deir.  “ATF will continue to work with our state and local partners to protect the public by investigating and prosecuting violent habitual criminals who unlawfully use firearms to terrorize our communities and reduce our overall quality of life.”     

According to U.S. Attorney Horn, the charges and other information presented in court: Goodman had at least eight prior felony convictions between 1984 and 1997 on charges including forgery, drug dealing, burglary, aggravated assault, possession of a firearm during the commission of a crime, and possession of a firearm by a convicted felon.  From 1997 until he was paroled in 2012 Goodman was in the custody of the Georgia Department of Corrections.  Between January and February, 2015, Goodman sold twelve separate firearms to an undercover ATF officer.  At the time of his arrest on March 18, 2015, Goodman was found in possession of two additional firearms along with various narcotics packaged for distribution. 

Goodman was originally indicted on March 4, 2015, along with co-defendants David Combs, Demetrice Coggins, and Shedrick Howard.  Howard pled guilty to four counts of being a felon in possession of 10 separate firearms and was sentenced to eight years, three months in federal prison on October 13, 2015.  Combs pled guilty to two separate counts of being a felon in possession of firearms and was sentenced on January 7, 2016, to two years, ten months in federal prison.  Coggins pled guilty to one count of being a felon in possession of a firearm and was sentenced on September 22, 2015, to one year and a day in federal prison.

Tony Anthony Goodman, 51, of Griffin, Georgia, has been sentenced by United States District Judge Timothy C. Batten, Sr., to 17 years in prison to be followed by three years of supervised release.  Goodman was found guilty after a bench trial presided over by Judge Batten on May 9, 2016.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.

Assistant United States Attorney Matthew S. Carrico prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA – Local grocery store operators Rodney Byrd and Reginald Byrd have been sentenced for conspiring to commit food stamp fraud.  The defendants utilized a series of stores in the Atlanta area to unlawfully purchase over $5.7 million in vouchers of the Georgia Women, Infants and Children (WIC) program and debit cards of the Supplemental Nutrition Assistance Program (“SNAP”).

“These defendants brazenly stole millions of dollars from government programs designed to help the poor and needy,” said U. S. Attorney John Horn.  “Their sentences show that people who line their pockets with money from government programs will go to prison.” 

“The prosecution of these individuals sends a strong message that we will not tolerate fraudulent abuse of our federally funded Food and Nutrition Service programs. Rodney Byrd and his brother, Reginald Byrd, created and managed businesses for the sole purpose of profiting financially from the benefits of families that needed assistance from the Supplemental Nutrition Assistance Program (SNAP) as well as the Georgia Women, Infants, and Children (WIC) program. We will continue to maintain our aggressive approach to investigate those that are trying to fraudulently take advantage of such programs. We would like to thank the U.S. Attorney’s Office, the Internal Revenue Service, the Georgia Department of Public Health as well as the Georgia Department of Human Services, Office of Inspector General for assisting us with this investigation,” said Karen Citizen-Wilcox, Special Agent-in-Charge, USDA-OIG-Investigations.

“Americans expect and deserve a government that ensures their tax dollars are managed efficiently and with integrity”, said Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “The SNAP and WIC programs cannot succeed without strong public confidence, so good stewardship of tax dollars is one of our most important objectives. Today’s sentencing of Rodney and Reginald Byrd is critical to preserving benefits for the vast majority of participants who play by the rules and need help to ensure their families have access to adequate and nutritious food.”

According to U.S. Attorney Horn, the charges and other information presented in court: Rodney Byrd owned and operated several metropolitan Atlanta area stores named “Tweet Baby Tweet,” “Chicos and Chicas Variety Store,” and “Tweets, Treats, and Nic Nacs.”  Reginald Byrd managed at least one of these stores.  The defendants directed employees of the stores to make cash payments to customers in return for the customers’ WIC vouchers and for the use of the customers’ SNAP debit cards, which is a violation of the terms of the WIC program and SNAP. 

As a result, tens of thousands of WIC vouchers totaling millions of dollars were deposited into bank accounts under the control of Rodney Byrd.  A large number of these vouchers were for prescribed infant formula that is supposed to be given to malnourished infants or infants who cannot use traditional formula.  Instead of selling products such as this to needy recipients, the defendants and their co-conspirators unlawfully purchased the vouchers for cash.  This scheme resulted in an estimated loss to the government of $5,747,817.18. 

U.S. District Judge Leigh Martin May sentenced Rodney Byrd, 41, of Atlanta, Georgia to four years in prison and Reginald Byrd, 40 of Atlanta, Georgia to one year and one day in prison.  Both defendants were also sentenced to three years of supervised release, a special assessment of $100, and ordered to pay restitution in the amount of $5,747,817.18.  The defendants were convicted of conspiracy to commit WIC and SNAP fraud on July 17, 2015, when they pled guilty to these charges.

This case was investigated by the United States Department of Agriculture, Office of the Inspector General and Internal Revenue Service Criminal Investigation.

Assistant United States Attorney Thomas J. Krepp prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.

ATLANTA – Buford investment advisor Blake Bancroft Richards has been sentenced for stealing over $3.2 million from his clients.  The defendant used client funds to make personal loan payments, take personal trips, and pay other personal expenses.

“Investors trusted Richards to invest their money as he promised,” said U.S. Attorney John Horn. “Instead, he stole their savings and repeatedly lied to them about his investments and self-dealing.  Investors need to be careful and thoroughly vet those whom they entrust their hard-earned money.”

“The pain and suffering to the victims of this crime can never be appeased,” said FBI Atlanta Acting Special Agent in Charge George Crouch. “The trust that was violated by Richards has caused life-long damage to these individuals.”

According to U.S. Attorney Horn, the charges and other information presented in court: Richards worked as an investment advisor for LPL Financial, Inc., in Buford, Georgia.  From 2008 through 2013, Richards defrauded his clients of money entrusted to him for investment purposes. He falsely represented that he would invest the money in life insurance, fixed income assets, variable annuities, and stocks. Instead, he deposited the money into bank accounts he controlled and used the money to make his own loan payments, pay real estate taxes, take personal trips, and pay other personal expenses.

To conceal his theft, Richards manufactured certificates and provided investors with fictitious account statements. When investors asked for their money, Richards made payments from his personal account or made excuses about why he could not return their money. During the five years of his scheme, Richards defrauded his clients, including close friends and family, of over $3.2 million.

Blake Bancroft Richards, 39, of Buford, Georgia was sentenced by U.S. District Judge Leigh Martin May to five years in prison to be followed by three years of supervised release, a special assessment of $100, and ordered to pay restitution in the amount of $3,749,485.80.  Richards was convicted on these charges on June 15, 2016, after he pleaded guilty to wire fraud.

This case was investigated by the Federal Bureau of Investigation.

Assistant United States Attorney Bernita B. Malloy prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga

ATLANTA - Mladen Mitrovic has been sentenced to four years, nine months, in prison after being convicted earlier this year of naturalization fraud.  The evidence at his trial showed that Mitrovic provided false and fraudulent information in his naturalization application to hide his work as a prison guard in a concentration camp that was part of the infamous “ethnic cleansing” that occurred during the Bosnian War in 1992.

“Mitrovic believed he could bury his past and the horrific human rights violations he committed during the Bosnian War,” said U. S. Attorney John Horn. “Our immigration system endeavors to flag those who have committed human rights violations, especially for those who seek refugee status from persecution.  Mitrovic’s application turned this humanitarian process on its head.  It’s incredibly fitting that he ultimately was discovered by a refugee from Mitrovic’s own abuses.”

“The defendant tried to game our country’s immigration process to conceal his record of flagrant human rights violations,” said Assistant Attorney General Caldwell.  “Together with our partners at the U.S. Attorney’s Office and HSI, however, the Criminal Division was able to ensure that both his immigration crimes and his human rights abuses saw the light of day.  Cases like this demonstrate how we ensure that the United States does not become a safe haven for human rights violators.”

“Human rights violators who think they can conceal their past to escape accountability in the United States are sorely mistaken,” said Nick S. Annan, Special Agent in Charge of ICE Homeland Security Investigations Atlanta. “This individual tried to cheat our nation's immigration system by lying about his actions during the Bosnian Civil War. Today's result shows that HSI is firmly committed to investigating and identifying criminals who seek to exploit our nation's welcoming policy toward legitimate war refugees.” 

According to U.S. Attorney Horn, the charges and other information presented in court: In 1996, Mitrovic was permitted to immigrate to the United States based on his statements in his refugee application that he feared persecution if he remained in Bosnia.  In 2002, he naturalized as an American citizen.  The evidence presented at trial also demonstrated that on his naturalization application, Mitrovic stated, among other things, that he had never persecuted anyone because of their race, religion or membership in a social group; he had never committed a criminal offense for which he had not been arrested; and he had never provided any false or misleading information to obtain an immigration benefit, such as refugee status.

In reality, as the trial evidence established, during the Bosnian War, Mitrovic had been a guard in one of the prison camps that the Bosnian Serb Army (VRS) opened in May 1992 to “ethnically cleanse” northwest Bosnia of non-Serb minorities.  At trial, one victim testified that Mitrovic had used a sharp military knife to carve a Christian cross into his chest, saying from that moment on, he “was going to be a Serb.”  Others testified that Mitrovic and other soldiers beat non-Serb prisoners into unconsciousness or threatened to kill them with automatic rifles.  Bosnian government documents also showed that in February 1996, Mitrovic applied for and was later awarded veterans’ benefits for his military service in the VRS during the Bosnian War.  Trial evidence showed that Mitrovic failed to disclose any of this conduct or military service on his refugee and naturalization applications.

U.S. authorities began investigating based on information provided by a former prisoner from the prison camp where Mitrovic had served.  That individual, who also came to the United States as a refugee, thought that Mitrovic had died during the war.  But in 2011, he learned that Mitrovic was living in the Atlanta area and he contacted U.S. immigration authorities.  At the sentencing hearing, that prisoner and another former prisoner, also a refugee in the United States, addressed the court.  One said that he would never forget how people looked after Mitrovic and other soldiers had beaten and tortured them.  At trial, the other prisoner testified how shocked and frightened he had been when Mitrovic, a friend before the war, threatened to kill him with an automatic rifle.

Mladen Mitrovic, 55, of Loganville, Georgia, was found guilty by a jury on May 26, 2016.  He has been sentenced to four years and nine months in prison, to be followed by two years of supervised release.  The court also granted a motion to revoke Mitrovic’s citizenship, but the revocation order will not go into effect until after a federal court of appeals reviews Mitrovic’s conviction and sentence.  The Department of Homeland Security will initiate administrative proceedings for the purpose of removing Mitrovic from the United States after his appeal is completed.    

This case was investigated by the Department of Homeland Security.

Assistant U.S. Attorneys William Traynor and Jessica Morris, and Christina Giffin, Assistant Deputy Chief of the Human Rights and Special Prosecutions Section of the Justice Department, prosecuted the case.

If you have information about individuals suspected of engaging in human rights abuses or war crimes, please call the ICE HSI tip line at 866-DHS-2-ICE, or complete its online tip form, https://www.ice.gov/webform/hsi-tip-form#wcm-survey-target-id.  Information may also be provided to the U.S. Department of Justice, Human Rights and Special Prosecutions Section by sending an email to hrsptips@usdoj.gov or calling 1-800-813-5863. Tips may be reported anonymously.   

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Robert A. Gist, who defrauded investors by lying about their investments, has pleaded guilty to a charge of mail fraud.  The defendant used investors’ money to pay his personal expenses and to fund operations of a company in which he had a personal interest. 

“Firms that offer to manage investments for clients have an ethical and fiduciary responsibility to do what they promise,” said U.S. Attorney John Horn.  “Sadly, we see outliers like this who steal from their clients.  Investors must be careful to do their homework before trusting a financial services firm with their hard-earned money.” 

“The number of times we investigate cases like this is overwhelming and discouraging,” said FBI Atlanta Acting Special Agent in Charge George Crouch. “The heartless disregard for the victim’s hard-earned investments cannot be tolerated and we will continue to relentlessly pursue individuals like Mr. Gist.”

According to U.S. Attorney Horn, the charges and other information presented in court: Gist was a registered broker who controlled the investment firm, Gist, Kennedy & Associates, and had more than 30 clients who invested more than $5 million with him.  Gist obtained investment funds from his clients by misrepresenting that he would make certain conservative investments for them in corporate bonds and other securities.  Instead, he took the funds from his clients and used them for personal expenses, to fund the operations of ENCAP Technologies (an industrial coating company), and to pay other clients purported dividends and proceeds from the investments he falsely claimed to have made for those other clients.  Gist perpetrated the fraud by preparing and mailing false account statements to his clients that falsely showed the conservative investments and returns he was supposed to make but never did.  The victims lost all of their investments.

Sentencing for Robert A. Gist, 65, of Atlanta, Georgia, is scheduled for December 1, 2016, at 10:00 a.m., before U.S District Judge Eleanor L. Ross.

This case is being investigated by the Federal Bureau of Investigation.  Considerable assistance was provided by the Atlanta office of the United States Securities and Exchange Commission.

Assistant United States Attorney Christopher J. Huber is prosecuting the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

A Loganville, Georgia, man was sentenced to serve 57 months in prison for obtaining his U.S. citizenship by providing false and fraudulent information on his naturalization application.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney John Horn of the Northern District of Georgia and Special Agent in Charge Nick S. Annan of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Atlanta made the announcement. 

Mladen Mitrovic, 55, who is originally from Bosnia and Herzegovina, was sentenced on Aug. 26, 2016, by U.S. District Judge Amy Totenberg of the Northern District of Georgia.  The court also granted a motion to revoke Mitrovic’s citizenship, although the revocation order will not take effect until after a federal court of appeals has reviewed his conviction and sentence.  Mitrovic was convicted on May 26, 2016, of failing to disclose his role as a prison guard in a Bosnian Serb Army detention camp as part of the “ethnic cleansing” that occurred during the Bosnian War from 1992 through 1995.

“The defendant tried to game our country’s immigration process to conceal his record of flagrant human rights violations,” said Assistant Attorney General Caldwell.  “Together with our partners at the U.S. Attorney’s Office and HSI, however, the Criminal Division was able to ensure that both his immigration crimes and his human rights abuses saw the light of day.  Cases like this demonstrate how we ensure that the United States does not become a safe haven for human rights violators.”

“Mitrovic believed he could bury his past and the horrific human rights violations he committed during the Bosnian War,” said U. S. Attorney Horn.  “Our immigration system endeavors to flag those who have committed human rights violations, especially for those who seek refugee status from persecution.  Mitrovic’s application turned this humanitarian process on its head, and it’s incredibly fitting that he ultimately was discovered by a refugee from Mitrovic’s own abuses.” 

“Human rights violators who think they can conceal their past to escape accountability in the United States are sorely mistaken,” said Special Agent in Charge Annan.  “This individual tried to cheat our nation’s immigration system by lying about his actions during the Bosnian Civil War.  Today's result shows that HSI is firmly committed to investigating and identifying criminals who seek to exploit our nation's welcoming policy toward legitimate war refugees.” 

According to evidence presented at trial, in 1996, Mitrovic was permitted to immigrate to the United States based on his statements in his refugee application that he feared persecution if he remained in Bosnia.  In 2002, he naturalized as an American citizen.  The evidence presented at trial also demonstrated that on his naturalization application, Mitrovic stated, among other things, that he had never persecuted anyone because of their race, religion or membership in a social group; he had never committed a criminal offense for which he had not been arrested; and he had never provided any false or misleading information to obtain an immigration benefit, such as refugee status.

In reality, as the trial evidence established, during the Bosnian War, Mitrovic had been a guard in one of the prison camps that the Bosnian Serb Army (VRS) opened in May 1992 to “ethnically cleanse” northwest Bosnia of non-Serb minorities.  At trial, one victim testified that Mitrovic had used a sharp military knife to carve a Christian cross into his chest, saying from that moment on, he “was going to be a Serb.”  Others testified that Mitrovic and other soldiers beat non-Serb prisoners into unconsciousness or threatened to kill them with automatic rifles.  Bosnian government documents also showed that in February 1996, Mitrovic applied for and was later awarded veterans’ benefits for his later military service in the VRS during the Bosnian War.  Trial evidence showed that Mitrovic failed to disclose any of this conduct or military service on his refugee and naturalization applications.

U.S. authorities began investigating based on information provided by a former prisoner from the prison camp where Mitrovic had served.  That individual, who came to the United States as a refugee, thought that Mitrovic had died during the war.  But in 2011, he learned that Mitrovic was living in the Atlanta area and he contacted U.S. immigration authorities.  At the sentencing hearing, that prisoner and another former prisoner, also a refugee in the United States, addressed the court.  One said that he would never forget how people looked after Mitrovic and other soldiers had beaten and tortured them.  At trial, the other testified how shocked and frightened he had been when Mitrovic, a friend before the war, threatened to kill him with an automatic rifle. 

HSI investigated this case.  Assistant Deputy Chief Christina Giffin of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorneys William Traynor and Jessica Morris of the Northern District of Georgia prosecuted the case.

If you have information about individuals suspected of engaging in human rights abuses or war crimes, please call the HSI tip line at 866-DHS-2-ICE, or complete its online tip form.  Information may also be provided to the Human Rights and Special Prosecutions Section by sending an email to hrsptips@usdoj.gov or calling 1-800-813-5863.  Tips may be reported anonymously.   

ATLANTA - Pamela B. Lewis has been sentenced for stealing over $1.2 million from her employer, an accounting firm, and her employer's client.

“Small firms depend on their accounting personnel to safeguard the financial health of the company and its clients,” said U.S. Attorney John Horn. “Lewis violated this trust and helped herself to $1.2 million held in the firm’s accounts over eleven years.”

“This is a devastating loss not only for the small business owner, but also for the owner’s client,” said FBI Atlanta Acting Special Agent in Charge George Crouch. “We will continue to diligently investigate anyone who callously preys on innocent victims like this.”

According to U.S. Attorney Horn, the charges and other information presented in court: Lewis worked as an accounting clerk for a family-owned accounting firm located in Snellville, Georgia.  From 2002 through 2013, Lewis forged the signature of the sole authorized account holder and owner of the firm on checks she wrote to herself from the company account. Between 2006 and 2013, Lewis also forged the signature of a trustee on checks she wrote to herself from a client's trust account. To conceal her theft, Lewis used her position as an accounting clerk to create false accounting entries, disguising the forged checks as legitimate business expenses or voided checks. During that time, Lewis embezzled over $1.2 million from her employer and her employer's client.

Pamela Lewis, 60, of Tucker, Georgia was sentenced by U.S. District Judge Mark H. Cohen to three years, one month in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $1,230,674.94.  Lewis was convicted on these charges on April 21, 2016, after she pleaded guilty to wire fraud.

This case was investigated by the Federal Bureau of Investigation.

Assistant United States Attorney Bernita B. Malloy prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA – Genaro Anguiar-Guizar has been sentenced to 17 years and six months in prison for his leadership role in a cocaine and methamphetamine trafficking conspiracy. Anguiar-Guizar is the last of five defendants to be convicted and sentenced for charges including conspiracy to possess with intent to distribute methamphetamine and cocaine.

“This Atlanta based drug trafficking organization used a network of couriers and stash houses to smuggle cocaine and methamphetamine from Mexico to our community,” said U.S. Attorney John Horn.  “Atlanta remains a hub for the importation of illegal drugs from Mexico after it crosses the border, and this case reflects our continued efforts to combat the influence and activity of these cartels in our city.”

“ICE Homeland Security Investigations will continue to focus investigative efforts on dismantling and bringing to justice members of drug trafficking organizations that choose to participate in the supply and sale of illicit narcotics like methamphetamine and cocaine. These individuals and organizations show a complete disregard for the violence and destruction that often accompany the use of highly addictive drugs,” said Special Agent in Charge of ICE Homeland Security Investigations Atlanta Nick S. Annan. “The boldness of this criminal group reflected a callous disregard for public safety that seriously underestimated the dedication of HSI and its local law enforcement partners to identify and seek prosecution of those engaged in this criminal conspiracy.”

According to U.S. Attorney Horn, the charges, and other information presented in court:  the Anguiar-Guizar drug-trafficking organization imported large quantities of drugs into the U.S. from Mexico, initially storing them at a local auto body repair shop.  From this location, the drugs were later parceled out to local residences for storage and distribution.  Co-conspirators procured and guarded the residences, and also transported the narcotics and the drug money in secret traps located within vehicles. 

During the course of the investigation, law enforcement seized nearly 19 kilograms of crystal methamphetamine and 69 grams of pure liquid methamphetamine from a residence in Jonesboro, Georgia, as well as nearly 30 kilograms of cocaine from a vehicle and residence in Morrow, Georgia.

Genaro Anguiar-Guizar, 35, of Buenavista, Michoacan, Mexico, was convicted on June 1, 2016, after he pleaded guilty.  He was sentenced to 17 years, six months in prison, to be followed by 15 years of supervised release, and ordered to pay $11,601.00 in restitution.  Four other members of the organization have already been sentenced.  They are as follows:

• Irma Ruelas, 36, of Morrow, Georgia, previously was sentenced to five years and three months of imprisonment, followed by five years of supervised release on the same conspiracy charge. Ruelas was convicted on July 19, 2014.
• Julian Esparza-Tovar, 32, of Morrow, Georgia, previously was sentenced to five years and three months of imprisonment, followed by five years of supervised release on the same conspiracy charge.  Esparza was convicted on July 11, 2014.
• Veronica Hernandez, 44, of Morrow, Georgia, previously was sentenced to 12 years and seven months of imprisonment, followed by five years of supervised release on the same conspiracy charge. Hernandez was convicted on June 19, 2014.
• Manuel Guizar-Sanchez, 23, of Jonesboro, Georgia, previously was sentenced to five years and ten months of imprisonment, followed by three years of supervised release on the charge of possession with intent to distribute methamphetamine.  Guizar was convicted on December 4, 2013.

This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations with assistance of Clayton County Police Department.

Assistant United States Attorneys Tasheika Hinson and Ryan M. Christian prosecuted the case.

The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA – The United States Attorney’s Office and the Justice Department announced today that it has filed a lawsuit against the state of Georgia alleging that its treatment and segregation of students with disabilities in the Georgia Network for Educational and Therapeutic Support (GNETS) Program violates the Americans with Disabilities Act (ADA).                                                                 

“This complaint alleges that many children in the GNETS program are consigned to dilapidated buildings that were formerly used for black children during segregation, or to classrooms that are locked apart from mainstream classrooms, with substantially fewer opportunities of participating in extracurricular activities like music, art, and sports,” said U.S. Attorney John Horn.  “The law mandates that all children, including those with behavior-related disabilities, must have equal opportunities for education, and several existing programs within our Georgia schools show that with appropriate support and services, these students can enjoy far greater integration with their peers.” 

“Seventeen years ago, the Supreme Court made clear that states must serve people with disabilities, including children with disabilities, in the most integrated setting appropriate to their needs,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “Georgia has relegated thousands of students with behavior-related disabilities to separate, segregated, and unequal settings, failing to comply with the Americans with Disabilities Act. The Justice Department seeks to make the promise of community integration a reality for all of the state’s students.  Students with disabilities in Georgia are entitled to access the services and supports that they need in the most integrated setting appropriate, where they can interact with and learn alongside their non-disabled peers and access educational opportunities that are equal to those available to other students in general education classrooms.”

The lawsuit, filed in U.S. District Court of the Northern District of Georgia, alleges that Georgia’s administration of its mental health and therapeutic educational services for students with behavior-related disabilities unnecessarily segregates students with disabilities in GNETS when they could appropriately be served with their peers in general education settings.  The community integration mandate of the ADA and the Supreme Court’s decision in Olmstead v. L.C. require states to make services available to people with disabilities – including children with behavioral disabilities – in the most integrated setting appropriate to their needs.  The department’s complaint seeks declaratory and injunctive relief.

Approximately 4,600 students with disabilities are currently in GNETS.  In July 2015, the department issued an extensive findings letter, notifying the state that it was violating the ADA by unnecessarily providing mental health and therapeutic educational services to students with behavior-related disabilities in segregated settings, denying them opportunities for meaningful interaction with their peers without disabilities.  The department found that most students in GNETS spend their entire school day, including meals, exclusively with other students with disabilities.  Specifically, more than two-thirds of GNETS students are assigned to attend school in regional GNETS centers that exclusively serve students with disabilities in buildings that are often located far from students’ homes.  Other students are assigned to regional GNETS classrooms located within general school buildings, but often in separate wings or isolated sections of the buildings. 

The lawsuit further alleges that as a result of the state’s unnecessary segregation, students in GNETS lack equal access to academic and extracurricular opportunities enjoyed by their peers outside the GNETS Program.  Mental health and therapeutic educational services and supports are available in Georgia to a limited number of students with disabilities in integrated educational settings.  The students who receive such services, many of whom have disabilities similar to GNETS students, are able to interact to the fullest extent possible with their non-disabled peers, participate in curriculum that corresponds to appropriate grade-level standards and partake in a wide range of extracurricular activities.

The ADA prohibits discrimination on the basis of disability by public entities, including state and local governments.  The ADA requires public entities to ensure that individuals with disabilities are provided services in the most integrated setting appropriate to their needs.  The Justice Department’s Civil Rights Division enforces the ADA, which authorizes the Attorney General to investigate allegations of discrimination based upon disability and to conduct compliance reviews regarding the programs and services offered by public entities.  Visit www.ada.gov and www.justice.gov/crt to learn more about the ADA and other laws enforced by the Civil Rights Division.  For more information on the Civil Rights Division’s Olmstead enforcement, please visit: www.ada.gov/olmstead/.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

The Lawsuit is the First Challenge to a State-Run School System for Segregating Students with Disabilities

The Justice Department announced today that it has filed a lawsuit against the state of Georgia alleging that its treatment and segregation of students with disabilities in the Georgia Network for Educational and Therapeutic Support (GNETS) Program violates the Americans with Disabilities Act (ADA).                   

The lawsuit, filed in U.S. District Court for the Northern District of Georgia, alleges that Georgia’s administration of its mental health and therapeutic educational services for students with behavior-related disabilities unnecessarily segregates students with disabilities in GNETS when they could appropriately be served with their peers in general education settings.  The community integration mandate of the ADA and the Supreme Court’s decision in Olmstead v. L.C. require states to make services available to people with disabilities – including children with behavioral disabilities – in the most integrated setting appropriate to their needs.  The department’s complaint seeks declaratory and injunctive relief.

Approximately 4,600 students with disabilities are currently in GNETS.  In July 2015, the department issued an extensive findings letter, notifying the state that it was violating the ADA by unnecessarily providing mental health and therapeutic educational services to students with behavior-related disabilities in segregated settings, denying them opportunities for meaningful interaction with their peers without disabilities.  The department found that most students in GNETS spend their entire school day, including meals, exclusively with other students with disabilities.  Specifically, more than two-thirds of GNETS students are assigned to attend school in regional GNETS centers that exclusively serve students with disabilities in buildings that are often located far from students’ homes.  Other students are assigned to regional GNETS classrooms located within general school buildings, but often in separate wings or isolated sections of the buildings.

“Seventeen years ago, the Supreme Court made clear that states must serve people with disabilities, including children with disabilities, in the most integrated setting appropriate to their needs,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “Georgia has relegated thousands of students with behavior-related disabilities to separate, segregated and unequal settings, and placed other students at serious risk of entering such settings, failing to comply with the Americans with Disabilities Act.  The Justice Department seeks to make the promise of community integration a reality for all of the state’s students.  Students with disabilities in Georgia are entitled to access the services and supports that they need in the most integrated setting appropriate, where they can interact with and learn alongside their non-disabled peers and access educational opportunities that are equal to those available to other students.”

“This complaint alleges that many children in the GNETS Program are consigned to dilapidated buildings that were formerly used for black children during segregation, or to classrooms that are locked apart from mainstream classrooms, with substantially fewer opportunities of participating in extracurricular activities like music, art and sports,” said U.S. Attorney John A. Horn of the Northern District of Georgia.  “The law mandates that all children, including those with behavior-related disabilities, must have equal opportunities for education, and several existing programs within our Georgia schools show that with appropriate support and services, these students can enjoy far greater integration with their peers.”

The lawsuit further alleges that as a result of the state’s unnecessary segregation, students in GNETS lack equal access to academic and extracurricular opportunities enjoyed by their peers outside the GNETS Program.  Mental health and therapeutic educational services and supports are available in Georgia to a limited number of students with disabilities in integrated educational settings.  The students who receive such services, many of whom have disabilities similar to GNETS students, are able to interact to the fullest extent possible with their non-disabled peers, participate in curriculum that corresponds to appropriate grade-level standards and partake in a wide range of extracurricular activities.

The ADA prohibits discrimination on the basis of disability by public entities, including state and local governments.  The ADA requires public entities to ensure that individuals with disabilities are provided services in the most integrated setting appropriate to their needs.  The Justice Department’s Civil Rights Division enforces the ADA, which authorizes the Attorney General to investigate allegations of discrimination based upon disability and to conduct compliance reviews regarding the programs and services offered by public entities.  Visit www.ada.gov and www.justice.gov/crt to learn more about the ADA and other laws enforced by the Civil Rights Division.  For more information on the Civil Rights Division’s Olmstead enforcement, please visit: www.ada.gov/olmstead/.

GNETS Complaint

ATLANTA - Autry State Prison inmate Reginald Perkins has been sentenced to 12 years and seven months in prison for laundering $1 million in fraud proceeds arising from a “jury duty” telemarketing scam conducted by inmates at Georgia Department of Corrections (GDOC) prisons.

“Prisons should be the one place where we have confidence that multi-million-dollar telemarketing schemes are not being conducted,” said U. S. Attorney John Horn.  “Cases like this show how much needs to be done to make sure that those who are convicted and sentenced to prison are not still victimizing citizens from behind bars.  We are working with state and federal law enforcement to eradicate the illegal use of cell phones and fraud in our Georgia state prisons, and will continue to prosecute offenders, whether they are in or out of prison.”

“This case showcases the criminal possibilities available to inmates with cell phones/smart phones and, with today’s sentencing of Mr. Perkins, it also illustrates the punishment available to those inmates who obtain and use them.  The FBI will continue to work with its various law enforcement partners in not only addressing these types of inmate based crimes but also in preventing inmates access to these cell phones that provide the means to do so much harm to the unsuspecting public,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.

According to U.S. Attorney Horn, the charges and other information presented in court: Perkins laundered fraud proceeds while incarcerated at Jimmy Autry State Prison in Pelham, Georgia, which is a Georgia Department of Corrections medium security prison and houses approximately 1,700 adult male inmates. 

While Perkins was serving his sentence at Autry, inmates regularly obtained cellular telephones. For example, from 2014 to 2015, officials seized more than 23,500 cellular telephones from inside Georgia state prisons. Many of the seized cellular telephones possessed Internet capabilities and the latest smartphone features. The possession of cellular telephones by inmates creates a significant risk to prison security and to public safety, as inmates used contraband cellular telephones to commit various criminal acts while incarcerated. 

Inmates used contraband cellular telephones from inside Autry to access Internet websites to identify the names, addresses, and telephone numbers of potential fraud victims. Using the cellular telephones, inmates called the victims whose names and numbers had been obtained. During these calls, the inmates made certain false representations to the victims, including: (a) that the inmates were law enforcement officials; (b) that the victims had unlawfully failed to appear for jury duty; (c) that because the victims had failed to appear for jury duty, warrants had been issued for the victims’ arrest; and (d) that the victims had a choice of being arrested on the warrants or pay fines to have the arrest warrants dismissed. To make the calls seem real, the inmates created fictitious voicemail greetings on their contraband cellular telephones, identifying themselves as members of legitimate law enforcement agencies.

For those victims who wanted to pay a fine, the inmates instructed them to purchase pre-paid cash cards and provide the account number of the cash card or wire money directly into a pre-paid debit card account held by the inmates. Based on these false representations, the victims electronically transferred money to the inmates because they believed that the funds would be used to pay the fine for failing to appear for jury duty and would result in the dismissal of the arrest warrant.

Perkins admitted that he would take the account number of the pre-paid cash card and contacted his co-conspirators, who were not incarcerated, to have those individuals transfer the money from the cash card purchased by the victims to a pre-paid debit card possessed by the co-conspirators. Next, the co-conspirators withdrew the victim’s money, which had been transferred to the pre-paid debit card they controlled, via an automated teller machine or at a retail store. Typically, the co-conspirators then laundered the stolen money by purchasing a new cash card so that the victims’ funds could be transferred back to the inmates. Perkins worked with about 100 individuals outside of the prison and laundered approximately $1 million in proceeds from fraud and other illegal schemes.

Reginald Perkins, 36, of Atlanta, Georgia, has been sentenced to 12 years, seven months in prison to be followed by three years of supervised release.  Perkins was convicted on these charges on March 22, 2016, after he pleaded guilty.

This case was investigated by the Federal Bureau of Investigation.

Assistant United States Attorney Christopher J. Huber prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Charles F. Hubbard has pleaded guilty to extortion and drug trafficking conspiracy charges. The defendant was an officer with the Auburn, Georgia, Police Department who used his law enforcement position and his patrol car to intercept and steal drugs and money.

“Hubbard assisted drug traffickers for his own financial gain,” said U. S. Attorney John Horn.  “He used his position as a police officer to perpetrate his scheme while betraying his community and the honest law enforcement officers who serve honorably every day.”

“It is deeply disappointing when an officer betrays his oath.” said Jack Killorin, Director of the Atlanta-Carolinas High Intensity Drug Trafficking Area. “What should be heartening to the community is that a task force of Federal, State and local police responded by upholding theirs.”

According to U.S. Attorney Horn, the charges and other information presented in court: Hubbard, while an officer with the Auburn Police Department, conspired with at least five other people to steal money and transport drugs.  For example, in January 2015, one of Hubbard’s conspirators ordered six kilograms of cocaine.  Hubbard used his Auburn police vehicle to intercept the drugs.  Afterward, federal court authorized wiretaps exposed Hubbard agreeing to conduct a traffic stop on an individual carrying drugs in exchange for a $5,000 payment. 

Then, on April 4, 2016, wearing clothing identifying himself as a police officer, and using his official police vehicle, Hubbard seized the confidential source's money.  Hubbard provided the confidential source with a receipt purporting to be from the “East Metro Drug Task Force,” a non-existent entity, so that the seizure would look official.  Hubbard then released the confidential source and met with two conspirators to split the money.  Hubbard was taken into custody and, upon searching his vehicle, law enforcement officers found additional unused blank property sheets in the name of the non-existent East Metro Task Force that Hubbard had manufactured.

Sentencing for Charles F. Hubbard, 51, of Loganville, Georgia, is scheduled for November 7, 2016, before U.S. District Judge Leigh Martin May.

This case is being investigated by the Drug Enforcement Administration, the Atlanta-Carolinas HIDTA, and the Georgia State Patrol.

Assistant United States Attorneys Elizabeth M. Hathaway and Vivek Kothari are prosecuting the case.

The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - The U.S. Attorney’s Office for the Northern District of Georgia has reached a settlement agreement with Redmond Regional Medical Center (Redmond), a health care provider located in Rome, Georgia, to resolve an investigation into allegations that it violated Title III of the Americans with Disabilities Act (ADA) by failing to ensure effective communication with individuals who are deaf and hard of hearing.

“Medical providers have an obligation under the ADA to provide effective communication to the deaf or hard of hearing,” said U.S. Attorney John Horn.  “Failure to provide effective communication could create a terrifying experience for the patient and compromised medical care.”           

The U.S. Attorney’s Office initiated an investigation after receiving complaints alleging that Redmond failed to provide appropriate auxiliary aids and services when necessary to ensure effective communication. The complainants, who are all deaf or hard of hearing and rely on American Sign Language as their primary means of communication, were either patients or the primary caregivers of patients at Redmond.  Two of the complainants are a deaf mother and daughter who went to the Redmond ER when the daughter developed a rash on her leg. They allege she was treated without effective communication and then discharged. Two days later, they returned to the Redmond ER after her symptoms worsened.  The daughter was diagnosed with a staph infection and had to undergo a surgical procedure with a four-day stay at the hospital. During this procedure and stay, they allege that they requested but were denied interpretive services. The third complainant is a deaf woman who made three separate visits to the Redmond ER, and alleged that on each visit she requested, but was denied interpretive services.

Under the settlement agreement, Redmond agreed to ensure effective communication to patients who are deaf or hard of hearing.  Among other things, Redmond has agreed to provide mandatory in-service training to all its personnel and provide reports to the United States Attorney’s Office regarding its compliance with the settlement agreement. The training will address the needs of deaf or hard-of-hearing patients and companions.  Redmond also agreed to pay $50,000 to the complainants.

The ADA prohibits discrimination against individuals with disabilities by health care professionals.  Under the ADA, health care providers are required to provide effective communication to individuals who are deaf or hard of hearing.  When complex, lengthy communication is involved, the ADA generally requires health care professionals to provide qualified sign language interpreters for the person who is deaf or hard of hearing.

This agreement is part of the Department of Justice’s Barrier-Free Health Care Initiative, which is a partnership of the Civil Rights Division and U.S. Attorneys’ offices across the nation, to target enforcement efforts on a critical area for individuals with disabilities.  The initiative, launched on the 22nd anniversary of the ADA in July 2012, includes the participation of more than 40 U.S. Attorneys’ offices, including the U.S. Attorney’s Office for the Northern District of Georgia.  Information about the initiative can be found at www.ada.gov/usao-agreements.htm.

Assistant United States Attorney Emily Shingler and Assistant United States Attorney Aileen Bell Hughes are representing the United States in this matter.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.

ATLANTA -  Lavunte Collins has been sentenced on five counts of armed robbery and one count of brandishing a firearm in furtherance of a crime of violence in connection with his robbery of a string of victims that he lured through Craigslist.    

“This case highlights the dangers of meeting strangers for commercial transactions of any kind,” said U.S. Attorney John A. Horn.  “The victims only expected to purchase electronic devices, but may now suffer from the trauma of these encounters for years.  To avoid becoming a victim of these crimes, we urge members of the public to arrange meetings with online vendors in public places, such as local police departments.”

“Today’s sentence is another reminder that ATF and our law enforcement partners will hold individuals accountable for any criminal behavior, especially that which threatens the safety of innocent civilians,” said ATF Assistant Special Agent in Charge John Schmidt.

According to U.S. Attorney Horn, the charges, and other information presented in court:   Between May 6, 2013, and May 20, 2013, Collins robbed five sets of victims of their phones, wallets, and cash after arranging to meet the victims through Craigslist.  In each case the victims arranged to meet Collins to buy an iPhone and recounted a similar story to law enforcement.  Specifically, they contacted a Craigslist vendor offering iPhones and other devices for sale.  The vendor directed the victims to meet at a residence and upon their arrival at the agreed upon location, Collins entered, or attempted to enter, the victims’ car.  Collins then robbed the victims at gunpoint and fled on foot. 

All five robberies also occurred within a two-mile radius of Collins’ residence in Stone Mountain, Georgia.  During one of the incidents, the buyer-victim’s wife and young child were inside the car as the robbery happened, increasing the victims’ trauma.

Lavunte Collins, 23, of Stone Mountain, Georgia, was sentenced by U.S. District Chief Judge Thomas W. Thrash Jr., to 13 years and six months in prison to be followed by five years of supervised release, and ordered him to pay restitution to the victims.  The defendant was convicted on these charges on May 25, 2016, after he pleaded guilty.  Collins is currently serving a five-year state sentence for an unrelated robbery.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) with the assistance of the DeKalb County Police Department.

Assistant U.S. Attorneys Jessica C. Morris and Kim Dammers prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Evgeny Tarasovich Levitskyy, a/k/a Vinchenco, a/k/a Vinch, a/k/a M.U.R.D.E.R.E.R., 31, of Nikolaev, Ukraine, was arraigned today before Catherine M. Salinas, United States Magistrate Judge, on federal charges of conspiracy to commit bank fraud, bank fraud, conspiracy to commit wire fraud, and wire fraud.  Levitskyy was indicted by a federal grand jury on October 13, 2015.  

“In just one day in 2008, an American credit card processor was hacked in perhaps one of the most sophisticated and organized computer fraud attacks ever conducted.  A team of hackers and cashers, stationed in 280 cities around the world, stole over $9 million dollars in 12 hours from 2100 ATMs worldwide,” said U. S. Attorney John Horn.  “Our pursuit of the perpetrators of this international scheme has continued for over seven years and demonstrates that we will persevere in seeking justice for international cyber- criminals for as long as it takes.” 

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The arrest and extradition of Evgeny Levitskyy is the result of a multi-national effort led by the FBI, clearly showing the benefits of global cooperation among US and international law enforcement.  It demonstrates the FBI’s long-term commitment to identifying and pursuing cyber-criminals world-wide, and serves as a strong deterrent to others targeting America’s financial institutions and citizens.   This arrest and extradition also highlights the benefits of forward-deploying FBI cyber special agents to foreign countries, who forge and maintain key relationships to facilitate opportunities such as this.  We must continue to impose real costs on criminals who believe they are far enough away to hack into US companies to steal money or intellectual property without consequences.  Levitskyy’s arrest and extradition removes a cashing leader from the resources available to the cyber-criminal underground, thereby deteriorating the capabilities of cyber-criminal groups seeking to monetize cyber-attacks.”

Michael Breslin, Special Agent in Charge of the United States Secret Service's Criminal Investigative Division, stated: “Based on our longstanding role in transnational cyber investigations and network intrusions, the Secret Service worked in conjunction with our law enforcement partners to provide critical evidence to further this investigation.  Our partnerships in law enforcement, the private sector, and academia are our greatest resources in combatting these sophisticated and complex crimes and today’s arraignment is proof that our strong commitment endures across all borders.”

According to United States Attorney Horn, the charges and other information presented in court: During November 2008, a team of hackers, including Estonian national Sergei Tšurikov and others, obtained unauthorized access into the computer network of RBS WorldPay, what was then the U.S. payment processing division of the Royal Bank of Scotland Group PLC, located in Atlanta, Ga. The group used sophisticated hacking techniques to compromise the data encryption that was used by RBS WorldPay to protect customer data on payroll debit cards.  Payroll debit cards are used by various companies to pay their employees. By using a payroll debit card, employees are able to withdraw their regular salaries from an ATM. 

Once the encryption on the card processing system was compromised, the hacking ring raised the account limits on compromised accounts to amounts exceeding $1,000,000.   The hackers then provided a network of cashers with 44 counterfeit payroll debit cards, which were used to withdraw more than $9 million from over 2,100 ATMs in at least 280 cities worldwide, including cities in the United States, Russia, Ukraine, Estonia, Italy, Hong Kong, Japan, and Canada. The $9 million loss occurred within a span of less than 12 hours.

The hackers then sought to destroy data stored on the card processing network in order to conceal their hacking activity.  The cashers were allowed to keep 30 to 50 percent of the stolen funds, but transmitted the bulk of those funds back to Tšurikov and his co-defendants. Upon discovering the unauthorized activity, RBS WorldPay immediately reported the breach, and has substantially assisted in the investigation.

Throughout the duration of the cash out, Tšurikov and another hacker monitored the fraudulent ATM withdrawals in real-time from within the computer systems of RBS WorldPay. 

Levitskyy, a Ukrainian national, is alleged to have been responsible for cashing out nearly $500,000 associated with a single hacked debit card number. 

The charges in this case carry a maximum sentence of 30 years in prison and a fine of up to $1,000,000 on each count.  In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.

 To date, the U.S. Attorney’s Office for the Northern District of Georgia has charged 14 individuals involved in the hack and cash out, including Russian nationals Viktor Pleshchuk, Evgeniy Anikin, and Roman Seleznev; Estonian nationals Sergei Tsurikov, Igor Grudijev, Ronald Tsoi, Eveilyn Tsoi, and Mikhail Jevgenov; Moldovan national Oleg Covelin; Ukrainian nationals Vladimir Valeyrich Tailar and Evgeny Levitskyy; Nigerian national Ezenwa Chukukere; American national Sonya Martin; and Vladislav Horohorin, who is citizen of Russia, Israel, and Ukraine. 

Members of the public are reminded that the indictment only contains charges.  The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.

This case is being investigated by the Federal Bureau of Investigation and United States Secret Service. 

Assistant United States Attorneys Lawrence R. Sommerfeld and Kamal Ghali are prosecuting the case.  Assistance was provided by the Justice Department’s Office of International Affairs, the Criminal Division’s Computer Crime and Intellectual Property Section, the Republic of Slovenia’s Ministry of Interior Criminal Police Directorate (“MNZ”), and the Czech Republic’s Policie Ceske Republiky (“PCR”).        

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Artaigaous Norwood, Joquize Norwood, and Detravius Brown, have been arraigned on federal charges of conspiracy to commit armed robbery, armed robbery, and use of a fire Three Defendants Indicted for Armed Robbery of Dunbar Armored, Inc., Courier arm in furtherance of a crime of violence.  Artaigaous Norwood was also charged with possessing a firearm after having previously been convicted of a felony offense.    

“The brazen nature of this armed robbery created an extraordinarily dangerous situation.” said U.S. Attorney John Horn.  “The indictment alleges that these defendants, with their guns drawn, put the lives of the victim, other innocent bystanders, and their own lives, at risk.” 

“The federal indictments and resulting arraignments of these three alleged armed robbers is a direct result of many long days and nights of hard work by FBI agents and Task Force Officers from Atlanta P.D.  Because of the threat posed to the public by these types of aggressive armed robberies, I am thankful that this investigation moved as quickly as it did without anyone getting hurt,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.

“This is just another example of how partnership works to keep City of Atlanta citizens safe,” said Atlanta Police Chief George Turner.  “Brazen attacks like this on hard-working people will not be tolerated and we will continue to work with our federal partners to ensure the individuals responsible are held accountable.”

According to U.S. Attorney Horn, the charges, and other information presented in court: On Saturday, May 14, 2016, at around 8:40 a.m., defendants Artaigaous and Joquize Norwood are alleged to have robbed a courier for Dunbar Armored, Inc., at gunpoint as he attempted to make a cash delivery to a business in Atlanta, Georgia.  The defendants approached the victim with their guns drawn just after the victim exited the armored vehicle.  One defendant grabbed the bag containing cash from the victim while the other took the victim’s firearm, holstered at his side.  Cell phone evidence and video surveillance showed that a third man, defendant Detravius Brown, acted as a lookout during the robbery. 

Artaigaous Norwood, 43, and Joquize Norwood, 21, of Atlanta, Georgia, along with Detravius Brown, 23, of Mableton, Georgia, were arraigned on July 21, 2016 before U.S. Magistrate Judge John K. Larkins III.  The defendants were indicted by a federal grand jury on July 12, 2016, after being charged by Criminal Complaint on June 13, 2016.

Members of the public are reminded that the indictment only contains charges.  The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.

This case is being investigated by the Federal Bureau of Investigation with the assistance of the Atlanta Police Department.

Assistant United States Attorney Jessica C. Morris is prosecuting the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.