Northern District of Georgia

MACON, Ga. - Michael Paul Atkinson, Jr., has been sentenced for conspiracy to commit wire fraud in connection with the federal food stamp program, known as the Supplemental Nutrition Assistance Program (SNAP).

“The defendant used the food stamp program as an ATM,” said U.S. Attorney John Horn.  “Food stamps provide needed assistance to the most vulnerable citizens in our society.  Schemes like these unfortunately divert critical resources away from the people who need them most.”  

“USDA-OIG stands firm in its mission to safeguard program benefits.  The prosecution of Atkinson serves as a message to those who operate businesses for the purposes of defrauding USDA programs and taxpayers that USDA-OIG will work with its federal, state and local law enforcement partners to vigorously investigate and prosecute you,” stated Karen Citizen-Wilcox, Special Agent-in-Charge, USDA OIG-Investigations.

“The American tax system is designed to provide vital government services to our people,” said Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “Every dollar that Michael Paul Atkinson diverted through fraudulent and criminal activity is a dollar taken away from a child in need or a vulnerable adult. We are proud to work hand-in-hand with our law enforcement partners to ensure that fraudulent benefit schemes are investigated thoroughly and any avenues allowing exploitation of these programs are shut down.”

According to U.S. Attorney Horn, the charges and other information presented in court: Atkinson operated Mid Way Market in Macon, Georgia, from 2010 through March 2015.  During that time, Atkinson paid beneficiaries in cash to redeem SNAP benefits and allowed beneficiaries to use those benefits to purchase non-allowed items.  In addition, Atkinson taught other workers at Mid Way how to process fraudulent claims.  As a result of the fraudulent scheme, the SNAP program paid over $5.1 million in redemptions to Mid Way that should not have been paid. 

Atkinson also agreed that his home was subject to forfeiture because it was purchased with proceeds from the fraud.  His house has been forfeited to the United States.   

Michael Paul Atkinson, Jr., 37, of Hampton, Georgia, has been sentenced to five years in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $5,141,520.28.  Atkinson was convicted on these charges on March 31, 2016, after he pleaded guilty.

The U.S. Attorney’s Office for the Middle District of Georgia is recused from this case.  It was prosecuted by the U.S. Attorney’s Office for the Northern District of Georgia.

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

Special 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 – Anthony and Sonia Alika of Austell, Georgia, have been sentenced to prison for their role in a stolen identity tax refund fraud scheme.   

“This fraud conspiracy featured a literal highlight reel of our current economic crime threats, including cyber intrusions, identity theft, phony tax returns and money laundering, all to the order of millions of dollars,” said U.S. Attorney Horn.  “These schemes create nightmares for citizens who endure the process of repairing their credit and IRS returns, and this case reflects law enforcement’s commitment to punish these criminals and do all we can to prevent further victims.”

“Anthony and Sonia Alika, driven by greed and a fast buck, lined their pockets by laundering more than $1 million stolen from the U.S. Treasury in the form of fraudulent income tax returns filed using data illegally obtained from the IRS Get Transcript database,” said Principal Deputy Assistant Attorney General Ciraolo.  “The sentences imposed today send a clear message to those pursuing similar criminal schemes.  The department, working with the IRS and its other law enforcement partners, will aggressively prosecute and seek substantial prison terms for individuals who engage in stolen identity refund fraud.”

“Today’s sentencing of Anthony Alika and Sonia Alika is a victory for the many American taxpayers who have been victims of sophisticated stolen identity refund fraud schemes,” said Chief Richard Weber of IRS Criminal Investigation. “The Alikas demonstrated a blatant disregard for the integrity of the U.S. tax system and caused immeasurable hardship to innocent victims. We continue to work hard to protect the sanctity and integrity of the tax system while working for justice for those individuals whose identities were stolen.”

In January, Anthony Alika and Sonia Alika were charged with laundering the proceeds from their stolen identity refund fraud scheme.  The indictment alleged that Anthony Alika, along with Rapheal Atebefia, were members of a conspiracy which obtained means of identification of actual individuals, including their names and social security numbers and used this information to access the IRS’s “Get Transcript” database. 

The indictment further alleged that Anthony Alika, Atebefia, and others obtained prepaid debit cards from stores located in multiple states, registered the cards in the names of the stolen identities, filed false income tax returns using the stolen identities and information obtained from the Get Transcript database and directed the IRS to deposit the tax refunds onto these cards.  Get Transcript is an online service the IRS offers to allow taxpayers to order copies of their past tax returns.

To conceal their fraud, Anthony Alika, Atebefia and others were alleged to have used the prepaid debit cards to purchase money orders which were subsequently deposited into bank accounts.  The Alikas and Atefibia then structured cash withdrawals of the proceeds in order to prevent the bank from filing Currency Transaction Reports (CTRs). 

As part of his guilty plea, Anthony Alika admitted that during 2015, he received money orders from several individuals and deposited them into bank accounts in his and his wife’s name.  Anthony Alika structured the cash withdrawals from his bank accounts in amounts less than $10,000 to evade the bank reporting requirements.  Anthony Alika admitted that the funds used to purchase the money orders were the proceeds of illegal activity, including the filing of fraudulent tax returns using stolen identities.  Anthony Alika admitted that he laundered over $1.5 million.  Sonia Alika admitted as part of her guilty plea that between February and June 2015, she withdrew more than $250,000 from multiple bank accounts she controlled in amounts less than $10,000 to prevent the bank from filing CTRs.

U.S. District Chief Judge Thomas W. Thrash Jr. for the Northern District of Georgia, sentenced Anthony Alika, 42, of Austell, Georgia, to serve six years, eight months in prison, followed by three years of supervised release, and was ordered to pay $1,963,251.75 in restitution to the Internal Revenue Service (IRS).  Sonia Alika, 27, also of Austell, Georgia, was sentenced to one year, nine months in prison, followed by three years of supervised release, and to pay $245,790.08 in restitution to the Internal Revenue Service (IRS).  In April, Anthony Alika pleaded guilty to one count of conspiracy to commit money laundering and Sonia Alika pleaded guilty to one count of illegal structuring of cash withdrawals to evade bank reporting requirements.

On June 22, 2016, Rapheal Atebefia, 33, of Austell, Georgia, was sentenced to serve one year, three months in prison followed by three years of supervised release for his role in the scheme.

Many tax fraudsters depend for their success on filing a fraudulent return with a stolen identity before their victims file their genuine returns.   Filing early and avoiding use of obvious usernames and passwords for online tax websites are two ways to help protect yourself. 

IRS-Criminal Investigation and the U.S. Postal Service Investigative Service investigated the case.

Assistant U.S. Attorney Brian Pearce and Trial Attorneys Michael C. Boteler and Charles M. Edgar, Jr., of the Tax Division prosecuted this 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 - Aaron James Glende has been arraigned on federal charges of bank fraud, access device fraud, and aggravated identity theft.  The indictment alleges he advertised criminal services on AlphaBay Market, a hidden services marketplace.

“Glende allegedly sold stolen bank account information on a website designed to traffic criminal goods and services, including weapons, stolen credit cards, and illegal narcotics,” said U. S. Attorney John Horn.  “As cyber criminals increasingly trade financial information for cash, citizens must be vigilant with their account information.”       

“The threat posed by cyber criminals is a persistently increasing problem for everyday citizens here in the U.S. and abroad. This investigation and resulting arrest clearly illustrates that the FBI, however, will not cease in its effort to identify, locate, arrest and seek prosecution of these criminals regardless of how deep in the digital underground they reside,” 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: From about November 5, 2015, Aaron Glende, a.k.a. IcyEagle, began advertising criminal services on a TOR hidden services marketplace known as AlphaBay Market (“AlphaBay”).  The AlphaBay website contained a number of features designed to assist prospective buyers who wished to purchase criminal services. 

For example, the AlphaBay sales listings contained categories corresponding to various types of criminal services; those categories included “Fraud,” “Drugs & Chemicals,” “Counterfeit Items,” “Weapons,” and “Carded Items.”  Moreover, the website had a search functionality that allowed users to search for items by name.   Much like Amazon or eBay, users of the website could rate sellers and search for certain sellers by name, but purchases were made using Bitcoin.    

On May 4, 2016, Glende, using the online nickname “IcyEagle,” allegedly advertised the sale of stolen bank account information on the AlphaBay Market under the “Fraud” category.  In a listing entitled “High Balance SunTrust Logins 30K-150K Available,” using his online nickname, IcyEagle, Glende wrote that “I bring you freshly hacked Sun Trust Bank Account Logins.  The accounts are notorious for having weak security.”  The listing identified the sales price as $66.99 USD and indicated that IcyEagle had sold 11 of the high-balance account logins since November 11, 2015.

On March 19, 2016, Glende allegedly advertised the sale of “Hacked SunTrust Bank Account Logins $100-$500 Balances.”  The listing indicated that the sales price was $9.99 USD, that he had sold 32 since November 5, 2015, and noted that “this listing is for active SunTrust bank account balances of $100-$500.”

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 SunTrust account information from Glende using Bitcoin.  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 five different SunTrust Bank customers. 

Aaron James Glende, 35, of Winona, Minnesota, was arraigned before U.S. Magistrate Judge Janet F. King.  Glende was indicted by a federal grand jury on June 28, 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.  Assistance was provided by Homeland Security Investigations, the U.S. Postal Investigation Service, and the Winona, Minnesota Police Department. 

Assistant United States Attorneys Samir Kaushal and Kamal Ghali 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 - Nicholas Mazza has been sentenced to seven years, three months in federal prison for distributing child pornography.  The defendant is a former girls softball coach who had over 140,000 videos and pictures of sexual abuse of young girls when he was arrested.  Mazza worked as a coach for girls’ softball teams in Cobb County, Georgia.

“It is incomprehensible that anyone could enjoy watching a child as young as three years old being sexually abused,” said U.S. Attorney John Horn.  “Mazza had a massive collection of child pornography, and it is especially disturbing that this defendant worked around children.  This sentence is a stark reminder of the importance of these investigations to the safety of our children.”

“Child pornography is one of the most heinous crimes HSI investigates due to the irrevocable harm it inflicts physically and emotionally upon innocent children,” said HSI Atlanta Special Agent in Charge Nick S. Annan. “This crime is an outrage in all cases; however, it was especially so in this instance given the massive quantity of illegal images recovered and the subject’s proximity to children.  ICE Homeland Security Investigations is committed to investigating and seeking prosecution of child sex offenders as one of the agency’s highest priorities.”

According to U.S. Attorney Horn, the charges and other information presented in court: Mazza used a peer-to-peer file sharing program to search for and download child pornography files on the Internet.  In October 2014, special agents with Homeland Security Investigations downloaded 14 videos of child pornography that Mazza kept in a folder that made the files available to other persons using the same peer-to-peer file sharing program.  While downloading the files, the agents were able to capture the Internet Protocol address of the computer, which identifies the physical location of the computer.  The agents obtained a federal search warrant for the house associated with that Internet Protocol address, and they carried it out in early November 2014.  The agents took multiple computers, hard drives, and thumb drives. 

A computer forensics analysis of all of those items showed that the defendant possessed more than 143,000 images and videos of child pornography involving almost exclusively young girls.  The files included the sexual abuse of children as young as three years old, and many files depicted sadistic abuse of the children. Prior to his indictment in this case, Mazza worked as a coach for girls’ softball teams in Cobb County, Georgia.

Mazza, 67, of Powder Springs, Georgia, was sentenced to seven years, three months in prison to be followed by ten years of supervised release.  Mazza was convicted on these charges on May 10, 2016, after he pleaded guilty.   He was sentenced on July 15, 2016, by U.S. District Judge Leigh May.

This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.

Assistant United States Attorney Paul R. Jones prosecuted the case.

This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse.  Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.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 - Laquitta S. Brackins has been sentenced to federal prison for conspiracy to commit mail and wire fraud by defrauding a cell phone insurance provider.  Brackins, along with a co-conspirator, filed thousands of false insurance claims on cell phones that did not belong to them and received over $1.6 million worth of cell phones from those claims.

“Cell phone insurance fraud drives up costs for all cell phone consumers,” said U.S. Attorney John Horn.  “These defendants submitted thousands of fraudulent claims in the hope they could profit before anyone noticed.”

According to U.S. Attorney Horn, the charges and other information presented in court: Brackins and co-conspirator Nicholas L. Johnson defrauded Asurion Protection Services, LLC, and its cellular service provider clients, by submitting fraudulent cell phone insurance claims. Together, they obtained over $1.6 million worth of cell phones. 

As part of the conspiracy, Brackins recruited cell phone subscribers from the Atlanta area and also traveled out of state to find individuals willing to allow her to use their cell phone contracts in her scheme.  The defendants also used false identification documents and forged cell phone bills to file fraudulent claims with Asurion.  Under Asurion’s insurance program, subscribers receive replacement phones to replace lost or stolen phones covered by the insurance.  Brackins was linked with over 3,600 fraudulent submissions and she received over 2,900 phones as a result.  After the defendants received the fraudulent phones, they and others involved in the scheme sold the phones to electronic wholesalers in the Atlanta area.  Once she was indicted, Brackins fled and lived under false names at various hotels.  She continued the scheme, having fraudulently obtained phones sent to her at the hotels.   

Laquitta S. Brackins, 35, of Atlanta, Georgia, was sentenced by U.S. District Judge Steve C. Jones to seven years, three months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $1,617,629.  Brackins was convicted on these charges on April 19, 2016, after she pleaded guilty to conspiracy to commit mail and wire fraud, as well as to substantive mail and wire fraud counts. 

Judge Jones previously sentenced Nicholas L. Johnson, 33, of Atlanta, Georgia, on March 29, 2016, to one year, nine months in prison to be followed by three years of supervised release, and he was ordered to pay restitution in the amount of $191,093.  Johnson was convicted of these charges on January 4, 2016, after he pleaded guilty to conspiracy to commit mail and wire fraud, as well as to substantive mail and wire fraud counts.

This case was investigated by the Federal Bureau of Investigation.

Assistant United States Attorney Christopher J. Huber and 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 – Former Cumming, Georgia, Police Officer Nathan VanBuren has been arraigned after being charged with wire fraud and computer fraud. 

“This former police officer allegedly used his position to access sensitive information in exchange for money,” said U. S. Attorney John Horn.  “This type of conduct unfortunately impairs the hard work of the police as well as the community’s trust in law enforcement.”

“Investigations into allegations of public corruption involving police officers is a disheartening, but very necessary duty of the FBI.  People have a right to demand that their public safety officers possess integrity and a sense of fairness as they carry out their duties. The FBI asks that anyone with information regarding such matters to contact their nearest FBI field office,” 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: In July 2015, VanBuren, in his official capacity as a police officer, responded to a 911 call at a citizen’s home in Cumming, Georgia. The citizen was arrested. In July and August 2015, VanBuren and the citizen had additional communications. During those communications, VanBuren allegedly asked the citizen for a loan because his wages were being garnished and he had incurred financial debt due to his son’s medical and surgical expenses. In reality, VanBuren’s salary was not being garnished and his son was not ill. The citizen reported VanBuren’s actions and agreed to cooperate with law enforcement.

While cooperating with law enforcement, the citizen provided VanBuren $5,000 in response to VanBuren’s repeated requests for money. During that meeting, the citizen asked whether VanBuren would search a sensitive police database to determine whether an individual was an undercover police officer. In exchange for $1,000, VanBuren unlawfully accessed the law enforcement database and provided the results of that search to the citizen. VanBuren resigned before he was terminated by the Cumming Police Department.

Nathan VanBuren, 34, of Cumming, Georgia, was arraigned before United States Magistrate Judge Janet F. King.  He was indicted by a federal grand jury on June 29, 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. The Cumming Police Department and Forsyth County, Georgia, Sheriff’s Office assisted with the investigation.

Assistant United States Attorney Jeffrey Brown 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 - James G. Maloney has been charged with committing and conspiring to commit mail and wire fraud against the United States and Georgia Tech. James J. Acree and James D. Fraley, III were also charged with participating in the conspiracy.

“The defendants in this case were successful members of the scientific and research communities who allegedly allowed their judgment to be clouded by greed,” said U. S. Attorney John Horn. 

“The allegations contained in the charging federal indictment are disheartening in that these three defendants offered so much to a technical program that very much needed their skills and intellect.  The allegations, however, assert that they chose instead to engage in fraud driven by financial greed,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.

“This case was enabled by the outstanding teamwork with the Federal Bureau of Investigations, Air Force Office of Special Investigations, and US Attorney's office,” OSI Special Agent Natalie Spaur said.  “In addition, it demonstrates the focus of law enforcement agencies to protect the public's critical resources.”

According to U.S. Attorney Horn, the charges, and other information presented in court: The defendants were employed by Georgia Tech and were members of the research faculty at the Georgia Tech Research Institute (GTRI), where they were assigned to the Advanced Concepts Laboratory. The defendants are experts in electromagnetic analysis and measurements and worked on projects funded by the United States Department of Defense, various intelligence agencies, and private industry. The defendants are charged with conspiring to defraud the United States and Georgia Tech by engaging in Georgia Tech Procurement Card (“PCard”) fraud and by engaging in fraudulent consulting activity.

PCard Fraud

As part of his duties and responsibilities at GTRI, Fraley had access to a Georgia Tech PCard. Fraley was supposed to use his PCard to purchase materials and supplies for official Georgia Tech business purposes. Neither he nor anyone else was allowed to charge personal purchases on a PCard. Nevertheless, Maloney, Acree, and Fraley allegedly charged more than $250,000 worth of personal expenses on Fraley’s PCard, including two four-wheelers and a trailer, two Sony 52-inch flat-screen televisions, Apple computers, iPads, OtterBox protective cases, iPods, Kindle E-readers, Leica and Nikon digital cameras, video cameras, a mini micro pinhole video camcorder pen, a night vision monocular, two pairs of binoculars, Bose headphones, a 3D printer, sports watches with heart-rate monitors, sunglasses, materials used to perform defendants’ private consulting contracts, computer monitors and solar panels for a private hunting club, a personal video network for home use, and an uninterruptible power supply for a tennis ball machine.

According to documents filed in court, Maloney and Fraley also used Fraley’s PCard to pay for remodeling and maintenance expenses related to six rental properties they owned together in the name of a Georgia corporation called J’s Services. Some of the payments for the benefit of J’s Services were charged to the United States on one of the contracts that Maloney controlled at GTRI. In addition, Fraley used his PCard to make PayPal payments to friends and relatives who “kicked back” some of the money to him. To make their personal PCard charges look like legitimate Georgia Tech business expenses, the defendants provided and caused others to provide false information and fraudulent documents to Georgia Tech and the United States.

After the defendants learned that they were being investigated by Georgia Tech’s Internal Auditing Department, they met to discuss their PCard fraud, get their stories straight, and plan a cover-up. Fraley recorded these conversations on his phone and later turned the recordings over to the FBI.

Fraudulent Consulting Activity

While employed full-time by Georgia Tech, Maloney, Acree, and Fraley allegedly moonlighted as consultants on various projects for which they were paid a total of more than $600,000. In competing for and performing this outside consulting work, the defendants allegedly diverted customers and revenue away from GTRI for their own personal gain and benefit. In addition, Maloney and Fraley allegedly caused and directed some of the Georgia Tech employees and students they supervised at GTRI to help perform this consulting work.  And Maloney and Fraley allegedly caused those Georgia Tech employees and students to bill their time for such work to the United States on one of the government contracts that Maloney controlled at GTRI.

James G. Maloney, 50, of Marietta, Georgia, was arraigned before United States Magistrate Judge Janet F. King.  Maloney was indicted by a federal grand jury on June 28, 2016. James D. Fraley, III, 38, of Acworth, Georgia, and James J. Acree, 50, of Atlanta, Georgia, also appeared before Judge King, waived indictment, and indicated that they intend to plead guilty to a criminal information charging them with participating in the conspiracy.

This case is being investigated by the Federal Bureau of Investigation and the Air Force Office of Special Investigations.

Assistant United States Attorneys J. Russell Phillips and Stephen H. McClain 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 - Avery Frazier has been sentenced to 20 years in federal prison for a series of violent armed robberies of title loan stores in Rockdale County, and Cobb County, Georgia.

“Frazier repeatedly traumatized hard working people at gunpoint,” said U. S. Attorney John Horn. “He sowed fear throughout our communities, robbing multiple title loan stores over time.  Thankfully, a quick police response helped identify his vehicle and, ultimately, led to his arrest.”

“The FBI is proud of the role that it played in bringing Mr. Frazier forward for federal prosecution. The lengthy prison sentence in this case is reflective of the serious nature of the repeated violent robberies committed and the emotional victimization left in his wake,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.

“Frazier’s actions during these robberies were terrifying to his victims,” stated City of Conyers Chief of Police Gene Wilson.  “We appreciate how the FBI and the US Attorney’s Office took this case to its conclusion and this sentence will help keep the citizens safe for a long time to come.  Because this case was prosecuted in federal court, Frazier got the sentence he deserved.”

According to U.S. Attorney Horn, the charges and other information presented in court:  Between 2013 and 2014, 34 robberies of title loan stores occurred in different areas of the metropolitan Atlanta area.  In each, the robber had a similar method of operation.  He would wear a mask, enter a title loan store brandishing a firearm at employees, and demand the business’s cash. He would then force employees to move to the rear of the store. Eventually, he started forcing the employees to remain in a bathroom or storage room until he left. The robber also threatened store employees by telling them at gunpoint that they must follow his directions or risk never seeing their families again.          

In early 2014, believing that the robberies were being committed by the same individual based on the method of operation and descriptions by witnesses, local law enforcement officers from several different Atlanta-metro police departments formed a task force and began working with the FBI to identify the robber.

On October 30, 2014, a local Conyers Police Department officer, who was responding to a call for assistance at a different location, captured Frazier’s license plate as Frazier fled the scene of a robbery at the Title Bucks store in Conyers, Georgia. After further investigation and information sharing among the FBI and local police departments, Frazier was identified as the suspect in the series of armed robberies. Conyers Police Department officers obtained a warrant for his arrest, and Frazier was arrested on that warrant on November 5, 2014.

On April 19, 2016, Frazier pled guilty to the following four armed commercial robberies:

• February 17, 2014 - Frazier robbed the employees of the Georgia Auto Pawn in Conyers, Georgia, while brandishing a firearm.

• May 20, 2014 - Frazier robbed the employees of a Title Max in Smyrna, Georgia, while brandishing a firearm.

• October 7, 2014 - Frazier robbed the employees of a different Title Max in Smyrna, Georgia, while brandishing a firearm. He told these employees that they had to go into a back room of the store and stay in the room if they wanted to see their families again.

• October 30, 2014 - Frazier robbed the employees of a Title Bucks in Conyers, Georgia, while brandishing a firearm. During the robbery, Frazier rounded up two employees and a customer who was present in the store at gunpoint. Brandishing the gun at them, he made them give him the day’s deposit of cash. He then ordered the three victims at gunpoint to go into a back room of the store and to wait ten minutes. He shut them in the room and left the store with the cash. It was in leaving this robbery that Frazier’s license plate was picked up by a local Conyers officer’s license plate reader.

The investigation revealed that during the time frame of the robberies, Frazier was a serious gambler at a casino in North Carolina, and he was making purchases of tens of thousands of dollars of casino chips in the weeks surrounding the robberies. Investigation further revealed that since Frazier was taken into custody in November 2014, there have been no further robberies of title loan stores in Atlanta that showed the same method of operation.

Avery Frazier, 49, of Douglasville, Georgia, was sentenced to 20 years in prison to be followed by three years of supervised release, and restitution of $14,218.

This case was investigated by the Federal Bureau of Investigation, with special assistance from the Conyers Police Department, Smyrna Police Department, Sandy Springs Police Department, Clayton County Police Department, Cobb County Police Department, Atlanta Police Department, Marietta Police Department, Oakwood Police Department, Douglas Co. Sheriff’s Department, Dekalb County Police Department, Snellville Police Department, Gwinnett Police Department, and Newnan Police Department.

Assistant United States Attorneys Mary L. Webb and Angela Marie Munson 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 - Scott Driscoll Bailey was sentenced for attempting to entice a minor to engage in illegal sexual activity.  The defendant admitted he planned to use prescription muscle relaxers as part of a sexual encounter he sought to have with a young girl.  

“Bailey expected to sexually abuse a young girl for his own perverse pleasure,” said U.S. Attorney John Horn.  “Thankfully, he was caught by the FBI before he could prey on a child.”

“Today’s sentencing to federal prison will firmly hold Mr. Bailey accountable for his criminal behavior of attempting to prey on a minor child.  It is reprehensible cases such as this that necessitates a vigilant and proactive posture by trained law enforcement officers and agents in protecting our nation’s children from those who would target and exploit them,” 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: On August 18, 2015, Bailey responded to an advertisement on the Internet in which a mother said that she was looking for someone to teach her 9-year-old daughter to have sex. Over the next 10 days, Bailey communicated with the mother and said that he had had numerous sexual encounters with young girls. He told her that he was a paramedic, and he said that he would bring something powdered to put in the daughter’s drink to relax her.

Bailey made arrangements to meet with the mother and her daughter at a fast food restaurant in Brookhaven, Georgia, on August 28, 2015. Unbeknownst to Bailey, he was communicating with an undercover FBI agent. He was arrested when he arrived at the restaurant. Agents searched his car and found condoms, lubricant, and a prescription muscle relaxer. Bailey had told the undercover agent that he would bring a muscle relaxer to grind into a powder to give to the child. He also said that he intended to have sex with the child.

Scott Driscoll Bailey, 45, of Fayetteville, Georgia, was sentenced to ten years in prison to be followed by ten years of supervised release.  Bailey was convicted on these charges on March 1, 2016, after he pleaded guilty.

This case was investigated by the Federal Bureau of Investigation.

Assistant United States Attorney Paul R. Jones prosecuted the case.

This case was brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse.  Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.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 – Thirteen members of a drug-trafficking cell which used passenger buses to smuggle staggering amounts of illegal drugs from Mexico to communities in the Northern District of Georgia have been sentenced for conspiracy to distribute methamphetamine, heroin and cocaine, and conspiracy to commit money laundering.

“After distributing these deadly drugs in the Atlanta area and elsewhere, the traffickers then shipped hundreds of thousands of dollars in drug money back to Mexico,” said U.S. Attorney John Horn.  “This case stands as a disturbing example of Atlanta’s role as a trans-shipment hub for the Mexican cartels as they package drugs for distribution across the East Coast and collect the proceeds for transportation back to Mexico.  Due to the tremendous cooperative effort between federal agencies and local law enforcement, this drug organization has been dismantled, and its members are in federal prison.”

“Methamphetamine, heroin and cocaine are highly addictive plagues that drug traffickers inflict upon law-abiding communities without any regard for the violence and destruction that often accompany their use,” said Special Agent in Charge of HSI 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 federal, state and local law enforcement partners to identify and seek prosecution of those engaged in this criminal conspiracy.”

“The role of IRS Criminal Investigation in narcotics investigations is to follow the money so we can financially disrupt and dismantle major drug trafficking organizations,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation.  “The sentences handed down today, mark the successful end of an investigation and serve as a strong message to individuals throughout the region that we will not stand for the destruction that drugs and related criminal activity bring to our communities. IRS Criminal Investigation is proud to provide its financial expertise as we work alongside our law enforcement partners to bring criminals to justice.”

According to U.S. Attorney Horn, the charges and other information presented in court: Atenogenes Alvarado-Delgado, who was initially based in Mexico, directed his brother, Jose Alvarado-Delgado, and associate, Reberiano Arroyo-Santana, in connection with the importation of large amounts of cocaine, methamphetamine, and heroin into the Atlanta, Georgia, area from Mexico. 

The investigation revealed that this organization used passenger buses, owned by Alejandro Carmona, to transport the drugs from Puebla, Mexico, across the border into the United States, and directly to the Atlanta area.  The drugs were often concealed inside of non-functioning batteries stored on the buses.  Alan Arnold Lopez traveled on the drug-filled buses on numerous occasions to ensure their safe passage.  Aside from Lopez and the bus drivers, Carmona’s buses traveled thousands of miles between Atlanta and Mexico without any paying passengers.  

Once the buses arrived in Atlanta, they were concealed in local warehouses where Jose Cardenas-Garcia off-loaded the drugs concealed within secret compartments in the buses. Jose Antonio Pineda-Maldonado, Rufino Pineda-Perez, Ranferi Pineda-Campos and Miguel Salinas distributed the drugs in the Atlanta area.  The drugs were also stored in local residences, including a house in Lilburn, Georgia occupied by Jose Ocampo-Jaimes. 

During the investigation, which commenced in October 2013, law enforcement seized approximately 644 pounds of methamphetamine, 37 kilograms of heroin, 27 kilograms of cocaine, and $680,000 in drug proceeds, which included the following seizures:

• October 8, 2013, agents observed Jose Pineda-Maldonado meet with Miguel Salinas in a parking lot located at 2450 Cumberland Pkwy near Vinings, Georgia.Agents followed Salinas onto Interstate 285 east to Buford Highway, where officers of the Doraville Police Department conducted a traffic stop.Salinas attempted to flee on foot, but was quickly apprehended.A search of Salinas’s vehicle revealed over 17 kilograms of methamphetamine, or “ice”.

   

• October 11, 2013, agents seized 54 kilograms of “ice” methamphetamine pursuant to a search warrant of an apartment on Cleburne Parkway in Hiram, Georgia, and 37 kilograms of cocaine and 18 kilograms of heroin pursuant to a search warrant of an apartment on Cumberland Parkway in Cobb County, Georgia.

   

• December 7, 2013, agents observed Yarley Pineda board a bus at 4600 South Atlanta Road, near Smyrna, Georgia, that was destined for Mexico. Later that day, officers with the Alabama Drug Task Force conducted a traffic stop of the bus and discovered $145,000 in drug money concealed in hollowed out shoes in Yarley Pineda’s suitcase.

   

• January 3, 2014, Jose Pineda-Maldonado delivered five kilograms of methamphetamine to a customer of Blanca Hernandez.Shortly thereafter, Pineda-Maldonado was stopped by the Cobb County Police on the East-West Connector in Cobb County.A search of the car revealed a suitcase with three commercial batteries in the back seat and seven more batteries in the trunk. Agents disassembled the batteries and found six bricks of methamphetamine in each battery, with a total weight of 51 kilograms of methamphetamine.

   

• January 4, 2014, law enforcement responded to an explosion at an apartment on Jameson Pass in Alpharetta, Georgia, which was used by the organization as a methamphetamine laboratory. A search of the apartment revealed a large quantity of liquid methamphetamine as well as approximately 15 grams of cocaine and 535 grams of powder methamphetamine.

   

• January 24, 2014, law enforcement seized approximately 19 kilograms of heroin from a bus at the U.S.-Mexico border in Laredo, Texas.The bus had just entered the United States from Mexico and was enroute to the drug cell in Atlanta.

   

• March 18, 2014, the Georgia State Patrol (GSP) stopped a vehicle on I-85 southbound in Gwinnett County, Georgia.During a search of the vehicle, agents seized approximately one kilogram of cocaine which was concealed in a cereal box and arrested Rufino Pineda-Perez.

   

• March 19, 2014, agents observed a bus used by the organization at a warehouse located at 1311 Fulton Industrial Boulevard in Atlanta.At that time, Jose Cardenas-Garcia loaded the concealed compartment in the bus with drug proceeds.Later that afternoon, the GSP stopped the bus and located $277,490 concealed in false compartments within the bus frame.

   

• May 29, 2014, law enforcement stopped a bus owned by Alejandro Carmona in Cobb County. A search of the bus revealed approximately 22 kilograms of cocaine concealed in the floorboard.

   

• May 29, 2014, agents served a federal search warrant at a residence located at 1055 Omaha Drive in Norcross.Upon entering the residence, law enforcement observed Jose Ocampo-Jaimes attempting to dispose of suspected methamphetamine by washing it down the tub drain.During the search of the residence, agents located approximately five kilograms of “ice” methamphetamine in the kitchen and bedrooms.

 

All defendants in this case were sentenced by Chief United States District Judge Thomas W. Thrash, Jr., as follows:

•    Alejandro Carmona, 65, of Arlington, Texas was sentenced to 20 years in prison, followed by five years of supervised release. Carmona was found guilty of a narcotics conspiracy charge on November 9, 2015 after a week-long federal jury trial.

•    Reberiano Arroyo-Santana, 38, of Atlanta, Georgia was sentenced to 20 years in prison, followed by five years of supervised release on charges of narcotics and money laundering conspiracy.

•    Atenogenes Alvarado-Delgado, 35, of Powder Springs, Georgia was sentenced earlier today to 19 years and seven months in prison, followed by five years of supervised release on charges of narcotics and money laundering conspiracy.

•    Jose Alvarado-Delgado, 37, of Austell, Georgia was sentenced to 19 years and seven months in prison, followed by five years of supervised release on charges of narcotics and money laundering conspiracy.

•    Ranferi Pineda-Campos, 29, of Lilburn, Georgia was sentenced to 11 years and three months in prison, followed by three years of supervised release on charges of narcotics and money laundering conspiracy.

•    Alan Arnold Lopez, 26, of Mableton, Georgia was sentenced to 11 years and three months in prison, followed by five years of supervised release on charges of narcotics and money laundering conspiracy.

•    Jose Antonio Pineda-Maldonado, 24, of Smyrna, Georgia was sentenced to 10 years and one month in prison, followed by five years of supervised release on charges of narcotics and money laundering conspiracy.

•    Miguel Salinas, 24, of Lawrenceville, Georgia was sentenced to eight years and ten months in prison, followed by four years of supervised release on a narcotics conspiracy charge.

•    Blanca Hernandez, 43, of Alpharetta, Georgia was sentenced to eight years and one month in prison, followed by five years of supervised release on a narcotics conspiracy charge.

•    Rufino Pineda-Perez, 50, of Lawrenceville, Georgia was sentenced to six years and six months in prison, followed by three years of supervised release on a narcotics conspiracy and illegal re-entry by a previously removed alien charge.

•    Jose Ocampo-Jaimes, 37, of Lilburn, Georgia was sentenced to five years and ten months in prison, followed by five years of supervised release on narcotics conspiracy and illegal re-entry by a previously removed alien charges.

•    Jose Cardenas-Garcia, 50, of Kennesaw, Georgia was sentenced to four years and nine months in prison, followed by five years of supervised release on charges of narcotics and money laundering conspiracy.

•    Yarely Pineda, 24, of Smyrna, Georgia was sentenced to two years and six months in prison, followed by three years of supervised release on a charge of money laundering conspiracy.

The investigation and prosecution of this case was a coordinated effort through the David G. Wilhelm OCDETF Strike Force, led by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and Internal Revenue Service Criminal Investigations.  Valuable assistance was also provided by the Cobb County Police Department, Cobb County Sheriff’s Office, Marietta Police Department, Powder Springs Police Department, Henry County Police Department, Clayton County Sheriff’s Office, Georgia Bureau of Investigation, DeKalb County Police Department, Alabama Drug Task Force, Newnan Police Department, Conyers Police Department, Gwinnett County Judicial Task Force, United States Customs and Border Protection, and the Georgia State Patrol.

Assistant United States Attorneys Michael Herskowitz, Nicholas Hartigan, 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 - Mary Suzanne Creach has been sentenced to federal prison for wire fraud as part of her scheme to steal over $230,000 from her former employer, an Atlanta-based law firm.  

“Even though well-paid as the Executive Director of her firm, Creach used her position to embezzle money routinely and to pad her comfortable lifestyle,” said U. S. Attorney John Horn. “Stealing is illegal whether it’s from someone's home or from your employer, and in this instance a law firm lost several hundred thousand dollars due to the actions of an unscrupulous senior employee.”

“This case is another unfortunate example of an individual who violated her position of trust to illegally enrich herself,” said Malcolm D. Wiley, Sr., Acting Special Agent in Charge of the United States Secret Service, Atlanta Field Office. “The United States Secret Service will continue to collaborate with its law enforcement partners to target and arrest individuals who commit these types of crimes.”

According to U.S. Attorney Horn, the charges and other information presented in court: From August 2013 until June 2015, Creach was the law firm’s Executive Director, and part of her responsibilities were managing the firm's financial affairs, including employee payroll. Despite being paid a considerable salary well in excess of six-figures, Creach used her authority to initiate unauthorized bank transfers and payroll adjustments that almost doubled what she earned in salary.

At the beginning of her scheme, Creach initiated fraudulent transfers and payroll adjustments in the $1,000 to $3,000 range. She grew considerably bolder over time, and towards the end of the scheme, she was routinely authorizing transfers to herself in the $6,000 to $7,000 range, with some transfers well over $10,000. By the time her theft was discovered by the firm, she had stolen $232,933.40.

Mary Suzanne Creach, 53, of Dunwoody, Georgia, has been sentenced by U.S. District Court Judge Thomas W. Thrash, to one year, six months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $232,933.40.  Creach pleaded guilty on March 28, 2016.

This case was investigated by the United States Secret Service.

Assistant United States Attorney Lynsey M. Barron 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 - Tovias Dunton, has been arraigned on federal charges of conspiring to possess heroin with the intent to distribute, distribution of heroin, and using a minor to distribute and attempt to distribute heroin.  The defendant was indicted as part of the Drug Market Initiative (DMI), which is an on-going commitment to eradicate the heroin market in the English Avenue neighborhood.   

“The cycle of drug trafficking in the English Avenue community is perpetuated by people like Dunton, who allegedly tried to avoid his own prosecution by enlisting minors to traffic heroin,” said U. S. Attorney John Horn.  “We won’t sit on the sidelines when drug dealers attempt to pull the young people in their community into the drug trade.”

“Although we are very pleased with the success of this operation, it highlights the persistence of narcotics trafficking and demonstrates that this type of crime is real and must be continuously battled,” said Assistant Special Agent in Charge John Schmidt, Bureau of Alcohol, Tobacco, Firearms & Explosives, Atlanta Field Division.

“The arraignment of Tovias Dunton on federal charges related to heroin distribution is a win for the City of Atlanta,” said Chief George N. Turner, Atlanta Police Department.  “The cowardly method of using children to commit your crimes shows just how far a criminal will go to carry out his deeds.  We will remain committed to working with our federal partners to protect our youth from every type of threat.”

“This indictment illustrates that drug trafficking at any level will not be tolerated in the state of Georgia.  It is paramount that violators of drug laws and criminals that utilize juveniles to distribute drugs be held accountable.  The Georgia Bureau of Investigation is fully committed to working with our local and federal partners in drug enforcement to address these types of crimes,” said Vernon Keenan, Director, Georgia Bureau of Investigation.

According to U.S. Attorney Horn, the charges, and other information presented in court: Dunton’s indictment stems from the latest phase of the DMI investigation of drug trafficking in the English Avenue community.  Dunton was identified by law enforcement as a heroin seller in the English Avenue community when he allegedly conducted a hand-to-hand transaction with a confidential informant in February 2016.  Beginning that same month, Dunton allegedly conspired with a 15-year old boy and others to possess heroin with the intent to distribute.  On two separate occasions in April and May 2016, Dunton allegedly used the minor distribute and attempt to distribute heroin.

Tovias Dunton, 37, of Atlanta, Georgia, was indicted by a federal grand jury on June 14, 2016, and was arraigned before United States Magistrate Judge Catherine M. Salinas. 

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 Bureau of Alcohol, Tobacco, Firearms and Explosives, Atlanta Police Department, and Georgia Bureau of Investigation. Assistant United States Attorney Nicholas Hartigan is 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 Department of Justice (DOJ) and the Department of Health and Human Services (HHS) announced an unprecedented nationwide sweep led by the Medicare Fraud Strike Force in 36 federal districts, resulting in criminal and civil charges against 301individuals, including 61 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving approximately $900 million in false billings. Twenty-three state Medicaid Fraud Control Units also participated in the arrests. In addition, the HHS Centers for Medicare & Medicaid Services (CMS) also suspended a number of providers using its suspension authority provided in the Affordable Care Act. This coordinated takedown is the largest in the history of the Medicare Fraud Strike Force, both in terms of the number of defendants charged and loss amount.    

“This exemplifies the ongoing commitment to investigate and prosecute those who steal tax dollars that provide essential healthcare to the elderly and low-income families,” said U.S. Attorney John A. Horn. “Those who commit healthcare fraud through filing of false claims, payment or receipt of bribes, or fraudulent medical practices will be held accountable for defrauding the U.S. government.”

“As this takedown should make clear, health care fraud is not an abstract violation or benign offense – it is a serious crime,” said U.S. Attorney General Loretta Lynch. “The wrongdoers that we pursue in these operations seek to use public funds for private enrichment. They target real people – many of them in need of significant medical care.  They promise effective cures and therapies, but they provide none. Above all, they abuse basic bonds of trust – between doctor and patient; between pharmacist and doctor; between taxpayer and government – and pervert them to their own ends. The Department of Justice is determined to continue working to ensure that the American people know that their health care system works for them – and them alone.”

“This indictment demonstrates our office’s continued commitment to protect crucial Medicaid dollars from fraud and abuse,” said Georgia Attorney General Sam Olens. “I would also like to thank our federal partners for their work and cooperation in this case.”

“The FBI, in working with the U.S. Department of Justice and the U.S. Health and Human Services Office of Inspector General, brought these investigative cases forward for federal prosecution as part of a national coordinated effort to firmly and aggressively protect the much needed federal funds that make up the Medicare program.  Those individuals that engage in Medicare fraud are not only stealing from the federal taxpayer but also from those individuals who are counting on Medicare and Medicaid for their healthcare needs,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.

“These actions send a strong message to those who allegedly steal from Medicare and Medicaid: The Office of Inspector General will continue to work hard with our law enforcement partners to eliminate the financial bleeding of our health care system,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. 

Specifically, the Northern District of Georgia case announced as part of the nationwide Medicare Strike Force takedown include:

United States v. Otis Shannon, et. al., Case No. 1:16-CR-218

According to U.S. Attorney Horn, the indictment, and other information presented in court: From on or about 2013 until 2015, Otis Shannon was employed with the Georgia Department of Behavioral Health and Developmental Disabilities. In this position, Shannon was tasked with reviewing mental health provider applications to verify that prospective mental health providers met requisite minimum staffing levels and had proper credentials and licenses to provide proper care to Georgia Medicaid beneficiaries.

According to the indictment, Shannon solicited and accepted bribes from applicants to accept falsified and forged documents. Matthew Harrell, Denise Dixon, Geovon Martin, Marion Simpson, Sharon Zellner, Derrick McDow, and Cortim Martin were owners, operators or employees of health care providers that paid bribes to Otis Shannon to gain approval to provide mental health services to Georgia Medicaid beneficiaries. These mental health providers were approved to bill Georgia Medicaid without meeting program requirements that were in place to ensure that beneficiaries were obtaining quality care. These unqualified providers improperly billed Georgia Medicaid for over $6.6 million and Georgia Medicaid paid the providers over $5.9 million. 

The following defendants have been charged by indictment with conspiracy to commit health care fraud and conspiracy to commit bribery:

• Otis Shannon, 42, of Stone Mountain, Georgia.

   

• Matthew Harrell, 40, of Atlanta, Georgia.

   

• Denise Dixon, 40, of Fayetteville, Georgia.

   

• Geovon Martin, 39, of Mableton, Georgia.

   

• Marion Simpson, 66, of Austell, Georgia.

   

• Sharon Zellner, 58, of McDonough, Georgia.

   

• Derrick McDow, 46, of Greensboro, North Carolina.

   

• Cortim Martin, 31, of Smyrna, Georgia.

   

The case is being investigated by the Georgia State Attorney General’s Medicaid Fraud Control Unit, FBI, and U.S. Department of Health & Human Services, Office of the Inspector General.  Assistant United States Attorney Jeffrey Brown and Special Assistant United States Attorney Robin Daitch are prosecuting this case.  Including the enforcement actions, nearly 1,200 individuals have been charged in national takedown operations, which have involved more than $3.4 billion in fraudulent billings. 

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.

The court documents for each case will posted online, as they become available, here: http://www.justice.gov/opa/documents-and-resources-june-2016-medicare-fraud-strike-force-press-conference.

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 - Stefon D. Clark, Ayanna Johnson, and Quantaves Curry, have been sentenced to three years, five months in federal prison for conspiracy to commit bank fraud in connection with their scheme to deposit fraudulent checks at USAA, the Navy Federal Credit Union, and BB&T.

“These defendants appealed to their victims with promises of ‘fast cash,’” said U.S. Attorney John Horn. “The ease with which they were able to prey on unsuspecting citizens reinforces that bank customers should always carefully guard their bank account information.”

“Bank fraud is not a victimless crime and this case clearly illustrates that those engaging in this type of criminal act will pay a high price for those actions.  The FBI will continue to dedicate significant investigative resources toward the protection of the banking industry and those customers in which it serves from those who would prey on them and defraud them,” 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: the defendants participated in a bank fraud scheme that lasted at least 17 months, compromised more than 240 bank accounts, and resulted in more than $600,000 in losses to three financial institutions.  The scheme generally worked as follows: the defendants would post advertisements on social media sites, such as Instagram, seeking individuals who had bank accounts with certain financial institutions and were looking to make “fast cash.”

Upon learning of an interested party, the defendants would obtain the individual’s bank account information—including account number, PIN number, online banking information, and debit card. The defendants then deposited checks that had been stolen or were for closed bank accounts into the compromised bank account, and would withdraw the funds as cash before the financial institution realized that the checks were not valid.  In total, the defendants deposited more than one million dollars in invalid checks into the compromised bank accounts and withdrew over $600,000 in cash.

All of the defendants pleaded guilty, with Johnson and Curry pleading guilty to conspiracy to commit bank fraud and Clark pleading guilty to conspiracy to commit bank fraud and seven substantive bank fraud counts. Curry pleaded guilty on July 6, 2015, Johnson pleaded guilty on August 26, 2015, and Clark pleaded guilty on January 20, 2016.

Stefon D. Clark, 27, Ayanna Johnson, 23, and Quantaves Curry, 27, all of Atlanta, Georgia, were sentenced to three years, five months in prison to be followed by supervised release, and ordered to pay restitution in the amount of $613,476.25.  Curry and Johnson were sentenced on November 16, 2015 and Clark was sentenced on June 22, 2016.

This case was investigated by the Federal Bureau of Investigation.

Assistant United States Attorney Christopher J. Huber and former Assistant United States Attorney Jamie Mickelson prosecuted the case.

This 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 – A federal grand jury has indicted Oluwatoyin Solarin for filing false Medicaid claims, money laundering, and seeking to evade banking reporting requirements.

“Medicaid funds should benefit truly deserving members of society,” said U. S. Attorney John Horn.  “When medical practitioners allegedly steal Medicaid funds for their own selfish benefit, this diverts scarce resources away from those who need them most.”

“Fighting Medicaid fraud is a top priority for my office,” said Georgia Attorney General Sam Olens.  “Those that steal these funds will be prosecuted.”

“The OIG is committed to investigating all allegations of individuals who target the vulnerable and unsuspecting refugee community,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta.

“The integrity of the medical profession must be protected from people like Dr. Solarin, who allegedly seek to illegally profit by pretending to provide legitimate medical services,” stated Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation.  “Health care fraud diverts funds from individuals who legitimately need care.  Through joint investigations such as this, we intend to continue to aggressively pursue those who steal from taxpayers and receive money that they are not entitled to.”

According to U.S. Attorney Horn, the indictment, a civil forfeiture complaint, and other information presented in court:  Solarin was a dentist who ran “Care Dental,” a small dental franchise with offices in Doraville and Duluth, Georgia.  Over a period of at least four years, Solarin allegedly submitted numerous false bills to the Georgia Medicaid Program that falsely claimed Solarin had performed dental procedures on Medicaid recipients. 

The indictment alleges that on various dates that Solarin claimed she was treating Medicaid recipients, she was not even in the state of Georgia, and was sometimes overseas.  Patients were seen at times by another dentist at Care Dental who Solarin knew was not permitted to file Medicaid claims.  At other points, Solarin allegedly directed at least one employee to falsify service dates on Medicaid claims so that it would appear dental work was being done on dates that the patient was eligible for Medicaid. 

Solarin also allegedly paid individuals to recruit Nepalese refugee children to come to Care Dental for dental services.  Parents were not always consulted when these children were seen at Care Dental. 

The indictment further alleges that Oluwatoyin Solarin, 45, Atlanta, Georgia, tried to mask financial transactions and also used the fraudulent proceeds for her own benefit.  On various occasions during the course of this fraud scheme, Solarin made cash deposits into a bank account directly under $10,000, with the purpose of evading banking reporting requirements.  Solarin used the proceeds of this scheme to purchase rental properties throughout the Atlanta area.  In a separate civil forfeiture action, the government is seeking to forfeit Solarin’s interest in over a dozen real properties located throughout the state of Georgia. 

Members of the public are reminded that the indictment contains only allegations.  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 Health and Human Services, Office of the Inspector General, investigators from the Georgia Medicaid Fraud Control Unit, and Internal Revenue Service Criminal Investigation.

Assistant United States Attorney Thomas J. Krepp and Georgia Assistant Attorney General Lyndie M. Freeman 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 - Veronical Joyner has been sentenced to two years in prison following her guilty plea for stealing her disabled son's Supplemental Security Income (“SSI”).

“Joyner lied to get her disabled son’s Social Security benefits,” said U. S. Attorney John Horn.  “Those benefits were intended to provide much needed care for him.  Instead, Joyner selfishly spent the money on herself.”

“There are few things more egregious than someone that wrongly takes the SSA funds of a disabled child and uses the money for themselves. These investigations demonstrate the seriousness with which Social Security Administration’s Office of the Inspector General (SSA/OIG), responds to allegations of fraud against our agency and its recipients,” said Special Agent-in-Charge Margaret Moore-Jackson, SSA/Office of the Inspector General.  “Though SSA has worked diligently over the years to improve the systems to detect the misuse of benefits, SSA/OIG actively pursues the few determined individuals that continue to manipulate the system. We are pleased with the aggressive action by the US Attorney’s Office that resulted in this sentencing.”

According to U.S. Attorney Horn, the charges and other information presented in court: in 2005, the Defendant applied for SSI on her son's behalf.  At that time, she swore to the Social Security Administration (“SSA”) that her son lived with her and that she would use the benefits for his care and support.  Because of her false statements, she was appointed to be his representative payee, allowing her to receive SSI payments directly.  Subsequently, Joyner completed annual reporting forms swearing that her son continued to live with her and that she spent all of the money on him.  She often included statements in the reporting forms explaining she was “unable to save” any money for her son because of additional expenses associated with his care.  In fact, her son did not live with her and she did not use the money for his care and support.  Rather, she spent the money on her own personal expenses.  Her fraud continued until March 2014, when the SSA discovered that the child did not, and never had, lived with Joyner.

Veronical Joyner, 43, of Conyers, Georgia, was sentenced to two years in prison to be followed by three years of supervised release, a $100 special assessment, and ordered to pay restitution in the amount of $66,425.20.  Joyner was convicted on these charges on March 17, 2016, after she pleaded guilty.

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 - Chenhsin Chan, a/k/a Paul Chan, has been found guilty of 30 felony counts following a three-day jury trial, in connection with his online marketing and sale of dietary supplements containing ephedrine in violation of a federal ban.

“Ephedrine has been banned for use in dietary supplements for over a decade now,” said United States Attorney John Horn.  “Chan, however, continued to market and sell unlawful products to online customers, exposing them to an unreasonable risk for illness or injury.  He willfully broke the law, and his conviction should send a message to those who seek to endanger the online marketplace with unsafe products.”

“This verdict emphasizes that criminals selling unsafe, adulterated dietary supplements to American consumers will be held accountable for their actions,” said Robert J. West, Special Agent in Charge, United States Food and Drug Administration (“FDA”) Office of Criminal Investigations’ Miami Field Office.  “The FDA will continue to pursue and bring to justice those who place profits above the public health.” 

According to U.S. 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 on his websites that contained ephedrine alkaloids.  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. 

Chenhsin Chan, a/k/a Paul Chan, 44, of Elmhurst, New York, 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.

In addition to its guilty verdict on the charges, the jury also criminally forfeited assets the defendant purchased with proceeds from the 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, as well as over $666,000 in proceeds from the crimes. 

Sentencing for Chan has not yet been scheduled.

This case is being 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 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 - Mladen Mitrovic, who served in the Bosnian Serb Army and worked as a prison guard in a camp that was part of the infamous “ethnic cleansing” that occurred during the Bosnian War, was found guilty of obtaining his American citizenship by providing false and fraudulent information on his naturalization application.

“Mitrovic thought that he could bury his past and the horrific human rights violations he committed during the Bosnian War,” said U. S. Attorney John Horn. “A jury saw through his deceit and he will now be held accountable for failing to be truthful during the naturalization process.” 

“This case demonstrates the Justice Department’s continued commitment to denying safe haven to human rights violators,” said Assistant Attorney General Leslie Caldwell.  “No matter how long it takes, we will pursue justice, protect the integrity of our immigration system, and seek accountability for crimes.”

“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. This 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 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.

Sentencing for Mladen Mitrovic, 54, of Loganville, Georgia, is scheduled for August 25, 2016, at 10:30 a.m. before U.S. District Judge Amy Totenberg.

This case is being investigated by the Department of Homeland Security.

Assistant United States Attorneys William Traynor and Jessica Morris, and Christina Giffin, Assistant Deputy Chief of the Human Rights and Special Prosecutions Section of the Justice Department 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.

Mladen Mitrovic, 54, of Loganville, Georgia, was found guilty by a federal jury of obtaining his U.S. citizenship by providing false and fraudulent information on his naturalization application, announced 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. 

Among other things, Mitrovic, who is originally from Bosnia and Herzegovina, failed to disclose his role as a prison guard in a detention camp, which was part of the “ethnic cleansing” that occurred during the Bosnian War from 1992 through 1995.  Mitrovic was convicted yesterday and his sentencing is scheduled for Aug. 25, 2016, before U.S. District Judge Amy Totenberg of the Northern District of Georgia.

“This case demonstrates the Justice Department’s continued commitment to denying safe haven to human rights violators,” said Assistant Attorney General Caldwell.  “No matter how long it takes, we will pursue justice, protect the integrity of our immigration system and seek accountability for crimes.”

“Mitrovic thought that he could bury his past and the horrific human rights violations he committed during the Bosnian War,” said U.S. Attorney Horn.  “A jury saw through his deceit and he will now be held accountable for failing to be truthful during the naturalization process.” 

“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.  This 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.

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 are prosecuting the case.

ATLANTA – Angelo Alleca, the former CEO of Atlanta, Georgia, based Summit Wealth Management, has pleaded guilty to conspiring with a former business partner to defraud investors of over $35 million dollars. Alleca marketed several funds that were supposed to invest in certain assets/investments, such as hedge funds managed by a professional money manager or mortgage debt.  Instead he used the money to pay redemptions to earlier investors, to acquire and operate several businesses, and to pay personal expenses.

“Instead of fulfilling promises of investments, investors were largely swindled out of their money in a Ponzi scheme which directly enriched Alleca,” said U.S. Attorney John Horn.  “This case serves as another reminder that investors need to be careful, and do their research when deciding who to trust with their hard-earned money.”

“The guilty plea of Mr. Alleca is the culmination of a lengthy and extensive federal investigation examining the allegations of many years of financial fraud which victimized so many investors out of millions of dollars.  It is the FBI’s hope that today’s guilty plea will provide some sense of relief to those victims that have suffered so much by Mr. Alleca’s greed driven criminal conduct,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.

According to U.S. Attorney Horn, the indictment, and other information presented in court: From on or about 2004 until 2012,  Alleca acted as the President and Chief Operating Officer of Summit Wealth Management, an investment adviser headquartered in Atlanta, Georgia. During that time, Alleca started several funds and falsely misrepresented that money would be invested in hedge funds and debt securities and managed by professional investment managers.

Instead of investing the money as advertised, Alleca allegedly lost a substantial portion of the funds through securities trading. In addition, Alleca improperly used the funds to operate Summit Wealth Management, make interest payments and redemptions to earlier investors, and to pay personal expenses. During the course of the scheme, fraudulent account statements were mailed to investors showing gains, when there was no money in the funds. 

In 1997 Alleca and Mark Morrow, a co-defendant in the case, and Alleca’s former business partner, formed Summit Capital Trading, a registered investment advisor and broker dealer in New York and Ohio.  Alleca led the Buffalo, New York office and Morrow ran the Cincinnati and Cleveland, Ohio offices. 

In 2007, Morrow established Detroit Memorial Partners LLC, which sold promissory notes to acquire and manage cemeteries in Michigan. 

Between 2007 and 2012, Morrow and Alleca marketed promissory notes in Detroit Memorial Partners to Summit Wealth clients in Atlanta, and throughout the country. Detroit Memorial Partners offered documents which contained material misrepresentations, including that the notes would be secured by real property.  In fact, no security interest was ever recorded with respect to the notes. Moreover, shortly after receiving the note proceeds, Alleca and Morrow, diverted funds for improper purposes including, making interest payments and redemptions to investors in Summit Wealth Management funds and personal expenses.  The indictment alleges that as a result of their fraud schemes, over 300 investors lost over $35 million dollars invested in the Summit Funds and Detroit Memorial Partners LLC.

Sentencing for Angelo Alleca, 46, of Buffalo, New York, is scheduled for August 4, 2016 at 2:00 p.m., before United States District Judge Leigh Martin May. 

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

Assistant United States Attorney Jeffrey Brown 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 - Franklin Latimore has been sentenced to thirteen years, three months in federal prison for possessing an unregistered machine gun while being a felon.  Latimore is considered a “career offender” under federal law because he has two prior felony convictions for either a crime of violence or a drug trafficking offense.   

“Machine guns are an especially dangerous category of firearms,” said U. S. Attorney John Horn.  “When these weapons are possessed by individuals with serious criminal histories, the threat that machine guns pose increases exponentially.”

“The law abiding citizens of this community are safer because of today’s sentence which will ensure the incarceration of a dangerous criminal and contribute to the restoration of order and peace to this area,” said ATF Special Agent in Charge Carl Walker. 

According to U.S. Attorney Horn, the charges and other information presented in court:  Latimore first came to the attention of police after a court-authorized wiretap intercepted a conversation concerning the sale of a large amount of cocaine.  Police did not know who the buyer was going to be, but knew the location and time of the supposed deal.  On that date and time, police made a lawful traffic stop of a vehicle that Latimore was driving near the drug deal and found over $100,000 in the trunk. 

A few days later, a search warrant was served on Latimore’s residence and police found the loaded machine gun, a second firearm, a kilogram press typically used by drug dealers to create brick-shaped blocks of drugs, and material commonly used to package drugs.  Latimore’s criminal history is so severe that special enhanced sentencing applies to him. 

Franklin Latimore, 60, of Atlanta, Georgia, was sentenced by United States District Judge Timothy C. Batten, Sr., to thirteen years, three months in prison to be followed by six years of supervised release, and ordered to forfeit all firearms.   Latimore has been convicted on these charges on December 15, 2015, after he pleaded guilty.

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

Assistant United States Attorneys Suzette A. Smikle, Michael Brown, and Kim S. 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 - Eric Donys Simeu, a/k/a Martell Collins, a citizen of Cameroon, has been arraigned on federal charges of conspiracy, wire fraud, computer fraud and access device fraud.  Simeu was indicted by a federal grand jury in Atlanta on September 23, 2014.

“Cybercrime is borderless, but increasingly, so too are our law enforcement capabilities,” said U.S. Attorney John Horn.  “With the cooperation of France and our international law enforcement partners, we were able to bring to justice a wanted fugitive who was allegedly committing cyber fraud that affected U.S. companies from the streets of West Africa.”

“Those who target US companies and citizens through cyber attacks and spear phishing emails can no longer be confident they will remain anonymous and be protected by geographic boundaries.  The arrest and extradition of Eric Simeu is the result of a multi-national effort led by the FBI, which demonstrates the benefits of global cooperation among international law enforcement and the private sector.  This arrest and extradition serves a strong deterrent to those targeting the computer networks of US companies and US citizens.  It should also serve as a reminder to the public to be vigilant and aware they are frequently targeted through fraudulent emails seeking to steal their personal information,” 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: Eric Simeu is allegedly responsible for a series of “phishing campaigns” which targeted customers of Global Distribution System (“GDS”) companies from approximately July 2011 to September 2014.

A “phishing campaign” is the act of sending targeted emails to individuals for the purpose of acquiring usernames and passwords.  The emails masquerade as an official communication from a legitimate company to gain the trust of the recipient and deceive them into providing protected information. GDS companies provide travel booking services to travel agencies and travel-related websites.  Airline tickets that are issued from sources other than air carriers themselves are generally processed through a GDS company.  Customers of GDS companies, such as representatives from a travel agency or travel-related website, are issued unique login credentials that are utilized to authenticate their identity and facilitate the issuance of airline tickets on GDS servers.

In this instance, Simeu’s alleged phishing campaigns targeted customers of two GDS Companies – one with its principal U.S. operations in Atlanta, Georgia, and another headquartered in Southlake, Texas. Simeu allegedly caused phishing emails to be delivered to customers of these GDS companies for the purpose of obtaining and stealing their unique log-in credentials. Simeu and others allegedly used the stolen log-in credentials to access the servers of the two GDS companies and cause the issuance of fraudulent airline tickets. Simeu and others then allegedly sold these airline tickets to customers, mostly in West Africa, for fractions of the actual cost, or used them for personal travel. The value of the fraudulently issued airline tickets exceeded $2 million.

On September 3, 2014, Simeu was arrested by French law enforcement pursuant to a federal criminal complaint issued out of the Northern District of Georgia. At the time of his arrest, Simeu was traveling from Casablanca, Morocco, to Paris, France, on an alleged fraudulently issued airline ticket in the name of his alias, Martell Collins, utilizing a fraudulent United Kingdom passport under the same name.

Eric Donys Simeu, a/k/a Martell Collins, 32, a citizen of Cameroon, was arraigned before United States Magistrate Judge Russell G. Vineyard.  A federal grand jury in the Northern District of Georgia returned an indictment against Simeu on September 23, 2014.  Simeu has been in French custody since his arrest in September 2014, pending completion of extradition proceedings. 

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 State Department Diplomatic Security Service. 

Assistant United States Attorney Steven D Grimberg and Trial Attorney Peter Roman with the U.S. Department of Justice Computer Crime and Intellectual Property Section are prosecuting the case. The Justice Department’s Office of International Affairs also provided valuable assistance.

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 - Deanna M. Roberts has been arrested on charges that while falsely claiming to be a licensed medical practitioner, she illegally transported liquid silicone from Florida to Atlanta and that she caused the death of another person by injecting the liquid silicone directly into the victim's buttocks.

“Roberts allegedly caused the death of another person by injecting her with silicone after falsely claiming she was a medical professional,” said U. S. Attorney John Horn. “The public should be wary of individuals who use substances like silicone in ways that are not approved by the FDA, or that are administered by persons who are not properly trained or licensed.”

“The FDA protects the public’s health by ensuring, among other things, that medical devices are safe and effective for their intended uses,” said Robert J. West, Special Agent in Charge, FDA Office of Criminal Investigations’ Miami Field Office. “We are fully committed to bringing to justice those who subvert FDA’s requirements and place unsuspecting American consumers at risk of serious harm by using unapproved and unsafe devices.”

“It is always a tragedy when someone loses their life due to the reckless negligence of another. This death shows why there is a need for FDA oversight and highlights the dangers when the system is illegally circumvented. We are thankful for the successful indictment of Deanna Roberts and pray that other lives can be saved by removing her ability to perform this dangerous activity,” Chief John F. King, Doraville Police Department.

“The underground operation of illegal injections has become more common and has threatened the health of victims,” said Atlanta Police Chief George N. Turner. “We will continue to work with our federal partners to combat this crime and expose perpetrators who risk the health of victims, for the sake of making a quick profit.” 

According to U.S. Attorney Horn, the indictment, and other information presented in court: liquid silicone is strictly regulated by the Food and Drug Administration (FDA) and may be legally injected directly into the human body only as a treatment for certain eye conditions. In April, 2004, Roberts began ordering liquid silicone from a business in Arizona.  Before she was allowed to buy the silicone, however, she was required to certify that it was not intended to be injected into humans.  Roberts falsely swore that she did not intend to inject the silicone into humans.  Instead, she claimed that she intended to supply the silicone to a customer for use in lubricating medical equipment.  Between April 2004 and December 2015, Roberts purchased approximately 178 gallons of liquid silicone.  Roberts then allegedly transported the liquid silicone to the Atlanta area and injected it into the hips, buttocks, and other body parts of her customers.  Roberts falsely claimed to her victims that she was a licensed medical practitioner.

On November 16, 2015, Roberts allegedly injected liquid silicone into the buttocks of a victim identified as L.H. in the indictment.  The indictment alleges that in doing so, Roberts caused the death of L.H. The indictment also alleges that Roberts injected another person with liquid silicone on the same date and that Roberts injected two others in October and November 2014.  These individuals, however, did not die from the injections. 

Deanna M. Roberts, 46, of Sanford, Florida, was arrested on May 17, 2016, and made her initial appearance on these charges in federal court in Orlando, Florida.

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 Food and Drug Administration, Office of Criminal Investigations, the Doraville Police Department, and the Atlanta Police Department.

Assistant United States Attorney William L. McKinnon, Jr. and Special Assistant United States Attorney Erin Sanders 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 – The United States Attorney’s Office today announced that it has entered into an extension agreement with the state of Georgia to improve the quality and availability of services for people with developmental disabilities living in the community and to provide supported housing to individuals with significant mental illness who need it. 

“During the past five years, the State of Georgia has significantly changed the way it provides services for people with disabilities,” said John Horn, U.S. Attorney for the Northern District of Georgia.   “Recognizing that we have more work to do in this area, I am encouraged by Georgia’s willingness to continue to partner with the Department of Justice and stakeholders to improve the quality of services for people with developmental disabilities and significant mental illness in our community.”

“By strengthening the services provided by Georgia’s mental health system, this agreement will make a difference in the lives of Georgians with developmental disabilities or mental illness who wish to build lives in the community,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “We look forward to working with Georgia to deliver on the promise of community integration enshrined in the ADA.” 

The extension agreement builds upon a 2010 settlement agreement resolving a lawsuit brought by the department under the Americans with Disabilities Act and the Supreme Court’s Olmstead decision.  The case involves Georgia’s provision of community services for individuals with mental illness and developmental disabilities.  The department found in 2009 that Georgia was forcing people with disabilities into state hospitals instead of providing community-based services, in violation of the ADA’s integration requirements.  In January, the department alleged that Georgia was not in compliance with the 2010 agreement, both regarding helping people move from institutions into their communities and regarding quality and oversight of community-based services.  In light of the agreement and the significant commitments Georgia has made in it, the department has agreed to withdraw its motion to enforce that earlier agreement. 

The agreement will resolve the seven areas of alleged deficiency  identified by the department in its January court filing.  Under the agreement, Georgia will help people with developmental disabilities move from its state hospitals to integrated settings, consistent with their needs and preferences; will identify and address each individual’s needs in the community prior to discharge; and will monitor services and track outcomes for people after their discharge.  For individuals who have moved from the state hospitals to the community, Georgia will monitor their health and wellbeing to ensure that emerging needs are met in a timely fashion.  The extension agreement also calls for creation of at least 675 new Medicaid home- and community-based waiver slots as alternatives to placement in a facility.  Georgia will provide clinical oversight and enhanced support coordination for individuals with developmental disabilities served by the state.   

The extension agreement enhances quality oversight, requiring specific actions in the event of serious incidents and corrective actions to address deficiencies.  The state will collect and review data to identify any trends and develop quality improvement initiatives.  In addition, Georgia will require providers to develop risk management and quality improvement programs.

Under the agreement, at least 600 additional individuals with mental illness will receive bridge funding and at least 633 will receive housing vouchers under the Georgia housing voucher program.  By June 30, 2018, the state is to have capacity to provide supported housing to any of the people with mental illness covered by the settlement agreement that need it.  The extension agreement requires a referral procedure to supported housing for people who need it leaving the state hospitals, jails, prisons, emergency rooms or homeless shelters.

The Civil Rights Division enforces the ADA, which authorizes the Attorney General to investigate whether a state is serving individuals in the most integrated settings appropriate to their needs.  Please visit www.justice.gov/crt to learn more about the Olmstead decision, the ADA and other laws enforced by the Justice Department’s Civil Rights Division.

Assistant U.S. Attorney Aileen Bell Hughes is representing the United States for the Northern District of Georgia 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 U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

The Justice Department today announced that it has entered into an extension agreement with the state of Georgia to improve the quality and availability of services for people with developmental disabilities living in the community and to provide supported housing to individuals with significant mental illness who need it.

The extension agreement builds upon a 2010 settlement agreement resolving a lawsuit brought by the department under the Americans with Disabilities Act and the Supreme Court’s Olmstead decision.  The case involves Georgia’s provision of community services for individuals with mental illness and developmental disabilities.  The department found in 2009 that Georgia was forcing people with disabilities into state hospitals instead of providing community-based services, in violation of the ADA’s integration requirements.  In January, the department alleged that Georgia was not in compliance with the 2010 agreement, both regarding helping people move from institutions into their communities and regarding quality and oversight of community-based services.  In light of the agreement and the significant commitments Georgia has made in it, the department has agreed to withdraw its motion to enforce that earlier agreement.

The agreement will resolve the seven areas of alleged deficiency  identified by the department in its January court filing.  Under the agreement, Georgia will help people with developmental disabilities move from its state hospitals to integrated settings, consistent with their needs and preferences; will identify and address each individual’s needs in the community prior to discharge; and will monitor services and track outcomes for people after their discharge.  For individuals who have moved from the state hospitals to the community, Georgia will monitor their health and wellbeing to ensure that emerging needs are met in a timely fashion.  The extension agreement also calls for creation of at least 675 new Medicaid home- and community-based waiver slots as alternatives to placement in a facility.  Georgia will provide clinical oversight and enhanced support coordination for individuals with developmental disabilities served by the state.

The extension agreement enhances quality oversight, requiring specific actions in the event of serious incidents and corrective actions to address deficiencies.  The state will collect and review data to identify any trends and develop quality improvement initiatives.  In addition, Georgia will require providers to develop risk management and quality improvement programs.

Under the agreement, at least 600 additional individuals with mental illness will receive bridge funding and at least 633 will receive housing vouchers under the Georgia housing voucher program.  By June 30, 2018, the state is to have capacity to provide supported housing to any of the people with mental illness covered by the settlement agreement that need it.  The extension agreement requires a referral procedure to supported housing for people who need it leaving the state hospitals, jails, prisons, emergency rooms or homeless shelters.

“By strengthening the services provided by Georgia’s mental health system, this agreement will make a difference in the lives of Georgians with developmental disabilities or mental illness who wish to build lives in the community,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “We look forward to working with Georgia to deliver on the promise of community integration enshrined in the ADA.”

“During the past five years, the State of Georgia has significantly changed the way it provides services for people with disabilities,” said U.S Attorney John A. Horn of the Northern District of Georgia.  “Recognizing that we have more work to do in this area, I am encouraged by Georgia’s willingness to continue to partner with the Department of Justice and stakeholders to improve the quality of services for people with developmental disabilities and significant mental illness in our community.”

The Civil Rights Division enforces the ADA, which authorizes the Attorney General to investigate whether a state is serving individuals in the most integrated settings appropriate to their needs.  Please visit www.justice.gov/crt to learn more about the Olmstead decision, the ADA and other laws enforced by the Justice Department’s Civil Rights Division.

The agreement was secured due to the efforts of Civil Rights Division’s Special Litigation Section and the U.S. Attorney’s Office of the Northern District of Georgia.  

Georgia ADA Extension Agreement

ATLANTA – Former Clayton County Police Department Officer Grant Kidd, Jr., has been arraigned after being charged for soliciting a bribe to dismiss pending criminal charges against two Clayton County defendants. 

“A law enforcement officer who is allegedly looking to line his own pockets by obstructing justice undermines the dedication and hard work of his fellow officers as well as the community’s trust and respect for its police officers,” said U. S. Attorney John Horn. 

“When a law enforcement officer strays from his sworn oath, as is alleged in our investigation and in the resulting federal grand jury indictment, it is extremely disheartening to us and others who work so hard within the criminal justice system and do so with integrity and commitment.  Due to the vast potential harm that these cases can cause, the FBI will continue to dedicate significant resources toward investigating such matters involving allegations of public corruption involving police officers,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.

According to U. S. Attorney Horn, the indictment, and other information presented in court: Kidd was employed by the Clayton County Police Department (CCPD) as a patrol officer.  In July 2015, Kidd allegedly used a friend to contact two Clayton County criminal defendants who were charged with theft and forgery.  Kidd arranged to meet with the two defendants in a parking lot of a shopping center shortly after they were released from the Clayton County Jail.  During a recorded conversation, Kidd allegedly assured the defendants that their charges would be “administratively dismissed” if they paid him $1,500.  Kidd even offered a money back guarantee to the defendants if their criminal charges were not dismissed.  After these allegations surfaced, Kidd resigned from the CCPD.

Grant Kidd, Jr., 52, of Hampton, Georgia, was indicted by a federal grand jury May 11, 2016.  He was arraigned before United States Magistrate Judge Russell G. Vineyard.

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 Brent Alan Gray 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 - Sholondrell Denise Taylor has been sentenced to federal prison for the theft of $1.9 million in a food stamp fraud scheme.  Her Atlanta stores allowed customers to exchange their food stamps for cash, and purchased Women, Infants, and Children (WIC) vouchers at less than face value, eventually redeeming them with the United States Department of Agriculture (USDA) at full price.

“Taylor cost taxpayers hundreds of thousands of dollars and diverted scarce resources intended to assist those most in need,” said U.S. Attorney John Horn.  “Store owners who provide an outlet for people to commit fraud, while taking profits for themselves, should expect to be caught and prosecuted.” 

“The prosecution of this individual should send a strong message to those individuals who defraud governmental programs that the USDA-OIG will continue to aggressively investigate individuals and businesses that take advantage of our SNAP and WIC programs. Sholondrell Taylor used her businesses for fraudulent purposes and profited immensely in doing so. The victims of these types of crimes are the children that were deprived of the food benefits that they were entitled to. We would like to thank the U.S. Attorney’s Office, the Georgia Department of Public Health and the Georgia Department of Human Services, Office of Inspector General, for assisting us with this investigation” says Karen Citizen-Wilcox, Special Agent-in-Charge, USDA-OIG.
 

According to U.S. Attorney Horn, the charges and other information presented in court: From January 2008 through March 2011, Taylor operated Dandes Food Center, LLC, in Forest Park, Georgia, and Shop Rite Food Mart, LLC, located in Atlanta, Georgia, where she unlawfully allowed customers to exchange their food stamp benefits for cash at the rate of 50 cents on the dollar.  Taylor also purchased WIC vouchers from benefit recipients at less than their actual value and redeemed the vouchers for full value with the USDA. 

Taylor set the rates of redemption, and instructed her employees to keep detailed ledgers of all transactions to ensure that they were not stealing from her.  She trained her employees how to determine the available balances on food stamp cards; and required employees to obtain WIC voucher codes and usable voucher dates before purchasing the vouchers.  Many of the customers who sold their WIC vouchers and food stamp benefits never visited Dandes or Shop Rite.  Taylor employed a driver who travelled throughout metropolitan Atlanta to retrieve WIC vouchers and food stamp cards and dispense illegal payments.

This case came to the attention of federal authorities as a result of an investigation involving Georgia Department of Human Services employees.  In 2011, Gene Tell and Kristy Williams were charged with conspiracy and mail fraud for their roles in the fraudulent creation and distribution of thousands of food stamp cards.  Many of the fraudulent cards were illegally redeemed at Dandes Food Center operated by Taylor.

Sholondrell Denise Taylor, 47, of Ellenwood, Georgia, has been sentenced to four years, six months in prison to be followed by three years of supervised release, ordered to pay restitution in the amount of $1.9 million, and a $100 Special Assessment.  Taylor was convicted on these charges on February 29, 2016, after she pleaded guilty.

This case was investigated by the U.S. Department of Agriculture, Office of Inspector General.

Assistant United States Attorney Loranzo M. Fleming 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 – Four defendants have been sentenced to federal prison for running a tax fraud scheme that involved using an ancestry/genealogy website to find personal information of victims and then file phony tax returns in their names.

“Identity thieves continue to find innovative ways to exploit the many beneficial aspects of the Internet to harvest information and steal money,” said U.S. Attorney John A. Horn.  “These defendants were not seeking ancestors.  Instead, they collected the Social Security Numbers of deceased people and filed over $1 million in bogus tax returns.”

“Sophisticated stolen identity refund fraud schemes have the potential to harm many taxpayers and put large amounts of public money at risk,” said Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “Shawuana Sanders and her co-conspirators demonstrated a blatant disregard of the integrity of the United States tax system and caused immeasurable hardship to innocent victims. We, along with the United States Attorney's Office, continue to do our part in protecting the sanctity and integrity of the tax system and those individuals whose identities were stolen, as well as recovering any monetary loss against the U.S. Treasury.”

According to U.S. Attorney Horn, the charges and other information presented in court:  Four defendants conspired together in a million-dollar tax fraud and identity theft scheme.  Defendant Shawuana Sanders orchestrated the scheme.  She and defendant Monica Person obtained personal identity information, primarily from an ancestry/genealogy website, but also from other sources.  They then filed fraudulent tax returns with the IRS using the names and Social Security numbers found on the website.  Many of the victims were deceased at the time of filing. 

The fraudulent tax returns claimed false income amounts and dependent information, including dependents whose names were also taken from the ancestry/genealogy website.  Sanders and Person had the tax refund checks mailed to various addresses associated with them.  Sanders filed over $1.1 million in fraudulent tax returns, and Person filed over $139,000 in fraudulent tax returns, as part of the scheme.

Defendant Tania Zelada worked as a supervisory teller at a bank in Columbus, Georgia.  At Sanders’ direction, Zelada cashed 127 fraudulent checks from the scheme worth over $463,000.  Zelada received several hundred dollars for each check she cashed.

Sanders’s ex-husband, Jason Sanders, was also involved in the scheme.  He mailed some of the fraudulent returns to the IRS, and on occasion shuttled cash and checks between Sanders and Zelada.  In addition, before the ancestry/genealogy website scheme, while working as a correctional officer at a jail in Muscogee County, Jason Sanders stole the personal information of inmates and gave it to Shawuana Sanders for her to use in filing fraudulent tax returns in 2008.

United States District Judge Timothy C. Batten, Sr. sentenced the defendants as follows:

• On May 12, 2016, Shawuana N. Sanders, 40, of Kennesaw, Georgia, was sentenced to five years, two months in prison, to be followed by three years of supervised release, and ordered to pay $845,809.76 in restitution.Shawuana Sanders was convicted of conspiracy and aggravated identity in February 2016 after pleading guilty.

• On May 12, 2016, Monica L. Person, 37, of Columbus, Georgia, was sentenced to two years, three months in prison, to be followed by three years of supervised release, and ordered to pay $87,112.65 in restitution.Person was convicted of conspiracy and aggravated identity theft in January 2016 after pleading guilty.

• On April 14, 2016, Tania M. Zelada, 26, of Fortson, Georgia, was sentenced to one year, three months in prison, to be followed by three years of supervised release, and ordered to pay $463,113.02 in restitution.Zelada was convicted of conspiracy in August 2015 after pleading guilty.

• On March 28, 2016, Jason L. Sanders, 33, of Columbus, Georgia, was sentenced to one year, six months in prison, to be followed by three years of supervised release, and ordered to pay $845,809.76 in restitution.Jason Sanders was convicted of conspiracy in August 2015 after pleading guilty.

This case was investigated by Special Agents of the Internal Revenue Service Criminal Investigation.

Assistant United States Attorney Stephen H. McClain 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 - Creshika C. Wise, a former Internal Revenue Service (IRS) Revenue Agent who impersonated a taxpayer in order to steal over $470,000, has pleaded guilty to a charge of aggravated identity theft.

It is outrageous for an IRS employee to use her position to steal a citizen’s identity so she could steal taxpayer funds,” said U.S. Attorney John Horn.  “Citizens count on the honesty and integrity of thousands of IRS employees every day to safeguard their private information, and breaches of this trust will be prosecuted and punished.”

“As our voluntary system of tax administration relies heavily upon the public’s confidence in a fair tax system, IRS employees must conduct themselves with the highest level of integrity and their conduct must be above reproach.  Our message is loud and clear:  the Treasury Inspector General for Tax Administration (TIGTA) will vigorously investigate and recommend criminal prosecution for any IRS employee who violates the public trust,” said to J. Russell George, Inspector General, TIGTA.   

According to U.S. Attorney Horn, the charges and other information presented in court:  Creshika Wise worked for the IRS from 2008 until the spring of 2016, when she resigned after her arrest in this case.  While with the IRS, she served as a revenue agent.  In August 2013, Wise was assigned to audit the 2011 tax return of two married taxpayers who had significantly underpaid their 2011 federal income tax.  In September 2013, Wise and the taxpayers’ accountant met, and agreed that the taxpayers owed $758,846, plus interest, to the IRS.  Wise came up with a plan to steal most or all of that money. 

The day after she met with the accountant, Wise placed in the IRS file for the audit a fictitious IRS Form 4549, “Income Tax Examination Changes” for the taxpayers.  This form is used by revenue agents to document changes to tax liability arrived at through the audits they conduct.  Wise falsified the form by dramatically understating the tax due to the IRS, reducing it from $758,846 to $282,363, and also by forging the accountant’s signature.  

A few days later, Wise opened up a new checking account, in the name “Creshika C. Wise sole prop d/b/a U.S. Treasury and Accounting Service.”  In October, 2013, Wise emailed the taxpayer from her official IRS email account, and asked him to wire the funds the taxpayers owed the IRS to her newly opened bank account.  Wise’s email provided the routing and account number for the account, which she described as belonging to “U.S. Treasury and Accounting Services.”  Wise’s email did not disclose to the taxpayer that she personally, rather than the IRS, was actually the owner of the account.            

The taxpayer never wired the funds as requested by Wise, as he had already mailed a check to the IRS for the full amount due.  Wise received the check, and processed it for credit to the taxpayers’ account.  However, Wise did not abandon her scheme.

Wise knew she had altered the IRS’s records to reflect a tax due of $282,363, rather than the agreed upon $758,846.  She also knew that when the IRS processed the check, the system would generate a refund check for any excess – here, over $470,000 – and mail it to the taxpayers’ address of record.  Wise turned her attention to getting the large check she knew would be coming to the taxpayers, and preparing to negotiate it herself.
           

• On 10/21/2013, Wise opened a new UPS mailbox in her own name at a UPS Store location.  Soon afterward, Wise caused the taxpayers’ address to be changed in the IRS computer system from their correct address to that of Wise’s newly opened UPS mailbox, causing IRS correspondence to the taxpayers to be misdirected.

   

• On 12/2/2013, impersonating the taxpayers, Wise filled out an online application for a new joint checking account in their names with a local bank.  On 12/10/13, Wise faxed the signature card, which she had created by forging the signatures of the taxpayers and using the husband’s social security number, to the bank. 

   

• On 12/20/2013, Wise called the bank to inquire whether the account was ready to be used.  This call was recorded and preserved by the bank.  In the call, Wise identified herself by name as one of the taxpayers, the wife, and provided the taxpayer’s correct social security number to confirm that identity.  Posing as the taxpayer, Wise said that it was important the account be opened quickly, because she was expecting a large check from the IRS. 

Wise’s scheme to take most or all of the money owed by the taxpayers to the IRS was unsuccessful, in that neither the taxpayers nor the IRS suffered any monetary loss.

Sentencing for Creshika C. Wise, 31, of Fairburn, Georgia, is scheduled for August 3, 2016, at 2:00 p.m. before U.S. District Judge Amy Totenberg.

This case is being investigated by the Treasury Inspector General for Tax Administration.

Assistant United States Attorney Alana R. Black 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 – A federal grand jury has indicted Daniel Barrs for willfully failing to follow anti-money laundering requirements under the Bank Secrecy Act as well as conspiracy to commit money laundering for his role in operating a money transmitting business that processed hundreds of millions of dollars’ worth of financial transactions for entities located around the world. 

“Our country requires financial institutions to guard against money laundering, terrorist financing, and financial fraud,” said U. S. Attorney John Horn.  “Individuals in the financial services industry who willfully avoid complying with the Bank Secrecy Act are not only engaging in highly risky behavior that facilitates dangerous activities, they also risk criminal prosecution.”

“This indictment is a culmination of many months of intense investigative efforts and document review and the matter now moves into federal court. The federal Bank Secrecy Act is in place for very good reason and the FBI will continue to provide investigative resources toward its enforcement,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.

“This joint effort continues to demonstrate our efforts to ensure that the financial services industry will not be used to launder money and will be operated in a fair and honest manner to promote the public interest,” stated Veronica Hyman-Pillot Special Agent in Charge, IRS Criminal Investigation. “Among the goals of this effort are: protecting the integrity and stability of the international financial system, cutting off the resources available to criminals, and making it more difficult for those engaged in crime to profit from their criminal activities.”

According to U.S. Attorney Horn, the indictment, and other information presented in court: Barrs ran a money transmitting business located in the Atlanta area named “Global Transaction Services” (GTS) along with several interrelated entities that transmitted hundreds of millions of dollars’ worth of wires on behalf of customers located around the world, many of whom Barrs knew were not able to obtain access to U.S. banking on their own and were sending or receiving wires from countries that posed money laundering concerns.  GTS was marketed as a company that could minimize the costs associated with transactions from entities located in one country and customers in other countries.  The Bank Secrecy Act requires money transmitters like GTS to guard against money laundering and illegal activity by developing, implementing, and maintaining an effective anti-money laundering program.  Money transmitters that identify certain types of suspicious financial transactions are also typically required to file a “Suspicious Activity Report” (SAR) with the U.S. Department of Treasury, Financial Crimes Enforcement Network.

The indictment alleges that Barrs took steps that ensured that GTS did not have an effective anti-money laundering program even though he knew it was critical that the company maintained one.  Barrs hired individuals with no experience with the BSA - such as his teenage grandson - to be the compliance officers, failed to train GTS employees to comply with the BSA, and ignored warnings from independent examiners that GTS’s compliance program was inefficient.  He also took various steps to help GTS obtain bank accounts even though domestic financial institutions repeatedly closed GTS accounts. 

At one point, Barrs became a controlling owner over a community bank based in Braselton, Georgia, so that GTS could process millions of dollars’ worth of international wires, even though federal regulators opposed his efforts.  At one other point, Barrs created a shell consulting company so that GTS could obtain a bank account under false pretenses. 

As a result of Barrs’ willful failure to develop, implement, and maintain an effective anti-money laundering program, GTS failed to have sufficient procedures in place to guard against money laundering.  Notably, from 2009 through the end of December 2014, GTS failed to file a single SAR. 

The indictment lists various examples of the types of transactions that GTS processed while Barrs ran the company, none of which resulted in the timely filing of a SAR.  For example, GTS transmitted wires totaling over $700,000 for two entities even though publicly available press releases from the U.S. Department of Justice and Federal Bureau of Investigation stated that the entities had been charged with running a large-scale offshore asset protection, securities fraud, and money laundering scheme.  GTS transmitted wires totaling over $900,000 for another entity even though a publicly available press release from the U.S. Department of Justice stated that an individual under indictment for operating a Ponzi scheme had used the entity to commit the offense. 

In another example, GTS transmitted wires totaling over $1.5 million for a Cyprus-based company that had a limited public profile, with no website or business listings, and that was listed on various publicly available websites as being associated with potential fraudulent credit card charges. 

In yet another example, GTS transmitted wires totaling over $2 million on behalf of a Belize-based company that was publicly listed in various websites as being associated with illegal spamming activity and internet fraud. 

A substantial portion of GTS’ business also came from processing transactions related to the Iraqi dinar.  The indictment alleges that Barrs knew that regulators had concerns regarding the sale of the Iraqi dinar and whether it was part of a scam.  GTS facilitated the transfer of hundreds of thousands of dollars between an Iraqi dinar exchanger and an individual in Japan who was purchased dinar in bulk for sale to his/her own customer base in Japan.  The Japan reseller submitted dozens of wires that listed the remittance reference as “purpose to buy antique books.”  At one point, the Chief Operating Officer of the Iraqi dinar exchanger forwarded a “Confirmation/Statement of Remittance” to GTS that indicated that the Japan reseller was transmitting money “to buy antique books.”  However, GTS failed to file a SAR on any of these transactions. 

Daniel Barrs, 67, of the United Kingdom, was charged with one count of willful failure to maintain an effective anti-money laundering program and one count of money laundering conspiracy. 

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 Internal Revenue Service Criminal Investigation and Federal Bureau of Investigation.

Assistant United States Attorney Thomas J. Krepp 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 - Federal agents have arrested multiple members and associates of the national gang The Gangster Disciples on RICO charges stemming from an indictment returned by a federal grand jury on April 27, 2016.  Agents also arrested Gangster Disciples members on a separate indictment handed down in Memphis, Tennessee.   

“Atlanta has historically been resistant to the incursion of these national gangs, but unfortunately today’s indictment shows how this landscape has changed in just the last few years, as the Gangster Disciples are only one of several gangs that now boast a strong foothold,” said U.S. Attorney John Horn.  “These charges show how a national gang like Gangster Disciples can wreak havoc here and in communities across the country, with crimes that run the gamut from murder to drug trafficking to credit card fraud.  Within Georgia, the leadership of the Gangster Disciples resided mostly in metro Atlanta, yet the reach of the crimes committed extended into far south and west Georgia.  We hope this indictment warns the leaders of these gangs that Atlanta is not a good place to do business.”

“It is the very of core of law enforcement’s mission to ensure that everyone feels safe in their homes and neighborhoods, and it is a hard reality that many people across our country simply do not enjoy this basic sense of security because of gangs like the Gangster Disciples,” said Assistant Attorney General Leslie Caldwell. “That is why it is so significant that today’s indictments charge top leaders within the Gangster Disciples. There are a lot of people out there willing to join gangs, and eager to get easy money from criminal activity. But there are far fewer people with the wherewithal to lead organizations like the Gangster Disciples. These are the people who keep gangs like the Gangster Disciples alive, year in and year out, generation after generation. Cases like these make a difference, and I want to thank all the law enforcement and U.S. Attorney Office and Organized Crime and Gang Section prosecutors who worked so hard to build this case.”

“Today’s Gangster Disciple arrests across nine states merely marks the first wave of the FBI’s strategic campaign to dismantle this violent criminal organization.  The Gangster Disciples are a highly-organized and ruthless gang that recognizes no geographical boundaries, and its members have far too long indiscriminately preyed upon and infected the good people of our communities like a cancer.  The FBI’s Safe Streets Gang Task Forces recognize no boundaries either, and we are committed to identifying, disrupting and dismantling the most violent gangs that seek to harm our communities.  The FBI, along with our law enforcement partners, are committed to seeing this campaign through, and once and for all putting an end to the Gangster Disciples’ reign of violence,” 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: Beginning in 2009, the defendants named in the RICO conspiracy charge committed murder, attempted murder, robbery, extortion, arson, firearm crimes, drug trafficking, wire fraud, bank fraud, credit card fraud, prostitution and obstruction of justice and other crimes in furtherance of the Gangster Disciples. 

The Gangster Disciples are a national gang active in approximately 24 states, including Georgia.  The Gangster Disciples brought money into the gang through, among other things, drug trafficking, robbery, carjacking, extortion, wire fraud, credit card fraud, insurance fraud and bank fraud.  The gang protected its power and operation through threats, intimidation and violence, including murder, attempted murder, assault, and obstruction of justice.  It also promoted the Gangster Disciples enterprise through member-only activities, including conference calls, celebrations of the birthday of the Gangster Disciples founder, the annual Gangster Ball, award ceremonies, and other events. 

The gang also provided financial and other support to members charged with or incarcerated for gang-related offenses, and members who were fugitives from law enforcement would be provided “safe houses” in which to hide from police.  To introduce the criminal nature of the Gangster Disciples to a new member, older members and leaders in the various local groups ordered newer members to commit crimes, including murder, robbery and drug trafficking.  Further, Gangster Disciples members would teach other members how to commit certain crimes, including fraud crimes, and would provide drugs on discount to other Gangster Disciples members who would then resell the drugs. 

Members were organized into different positions, including board members and governor-of-governors who each controlled geographic regions; governors, assistant governors, chief enforcers, and chief of security for each state where Gangster Disciples were active; and coordinators and leaders within each local group.  To enforce discipline among Gangster Disciples and adherence to the strict rules and structure, members and associates were routinely fined, beaten, and even murdered, for failing to follow rules. 

The indictment alleges that Gangster Disciples members committed 10 murders, 12 attempted murders, two robberies, the extortion of rap artists to force the artists to become affiliated with the Gangster Disciples, and fraud resulting in losses of over $450,000.   In addition, the Gangster Disciples trafficked in large amounts of heroin, cocaine, methamphetamine, illegal prescription drugs, and marijuana.  The indictment also seeks forfeiture of 34 different firearms seized as part of the investigation.  

In the Georgia indictment alone, the grand jury indicted Gangster Disciples members from multiple cities in the state to include Atlanta, Decatur, Stone Mountain, Marietta, Valdosta, Macon, and Cochran.  They also arrested gang members in Birmingham, Alabama; Denver, Colorado; Wichita, Kansas; Chicago, Illinois; Detroit, Michigan; Madison, Wisconsin; and San Jose, California.

The RICO conspiracy charge names the following defendants and their alleged roles within the Gangster Disciples:

• Shauntay Craig, 37, of Birmingham, Alabama, held the rank of Gangster Disciples “Board Member”.

• Vancito Gumbs, 25, of Stone Mountain, Georgia, was a member of the Gangster Disciples while at the same time serving as a police officer with the DeKalb County Police Department.

• Alonzo Walton, 47, of Atlanta, Georgia, held at different relevant times the positions of governor and governor of governors, the latter position controlling Georgia, Florida, Texas, Indiana, and South Carolina.

• Mangwiro Sadiki-Yisrael, 43, of Marietta, Georgia, held at different relevant times the positions of a first coordinator, assistant governor of Georgia, and governor of Georgia.

• Kevin Clayton, 43, of Decatur, Georgia, was the chief enforcer for the State of Georgia.

• Donald Glass, 26, of Decatur, Georgia, served as a first coordinator of the eastside group of the Gangster Disciples.

• Lewis Mobely, 38, of Atlanta, Georgia, was an enforcer.

• Vertious Wall, 40, of Marietta, Georgia, was a first coordinator for the Macon Gangster Disciples group.

• Adrian Jackson, 37, of San Jose, California, was the national treasurer for the Gangster Disciples.

• Terrence Summers, 45, of Birmingham, Alabama, held at different relevant times the positions of governor of Alabama and governor of governors for Georgia, Alabama, South Carolina and Florida.

• Markell White, 43, of Atlanta, Georgia, was a regional leader in Macon.  

• Ronald McMorris, 34, of Atlanta, Georgia, was first coordinator of the Atlanta group.

• Perry Green, 29, of Decatur, Georgia, was a member of the Gangster Disciples and acted as enforcer of a Gangster Disciples group.

• Dereck Taylor, 29, of Macon, Georgia, was a member of the Gangster Disciples and acted as security for a Macon group.

• Alvis O’Neal, 37, of Denver, Colorado, was a senior member of and drug trafficker for the Gangster Disciples.

• Jeremiah Covington, 32, of Valdosta, Georgia, was a first coordinator for the Valdosta region.

• Antonio Ahmad, 33, of Atlanta, Georgia, was the chief of security for the state of Georgia.

• Eric Manney, 39, of Atlanta, Georgia, was a member of the Gangster Disciples and stored multiple guns at his house.

• Quiana Franklin, 33, of Birmingham, Alabama, served as treasurer for the state of Alabama.

• Frederick Johnson, 37, of Marietta, Georgia, was a chief enforcer for a Gangster Disciples group.

• Charles Wingate, 25, of Conyers, Georgia, was chief of security for a Covington, Georgia, group.

• Thomas Pasby, 42, of Cochran, Georgia, was a member of the Gangster Disciples.

• Denise Carter, 41, of Detroit, Michigan, was a member of the Gangster Disciples.

• Carlton King, JR., 25, of Cochran, Georgia, was a member of the Gangster Disciples.

• Kelvin Sneed, 26, of Cochran, Georgia, was a member of the Gangster Disciples.

• Arrie Freeney, 32, of Detroit, Michigan, was a member of the Gangster Disciples.

• Myrick Stevens, 26, of Madison, Wisconsin, was a member of the Gangster Disciples.

• Curtis Thomas, 45, of Cochran, Georgia, was a member of the Gangster Disciples.

• Yohori Epps, 36, of Marietta, Georgia, was a member of the Gangster Disciples.

• Michael Drummound, 49, of Marietta, Georgia, was a member of the Gangster Disciples.

In addition to the RICO conspiracy:

• Defendant Lewis Mobely was charged with committing attempted murder in aid of racketeering and using a firearm during that shooting; possessing cocaine with the intent to distribute it; and possessing a firearm in furtherance of that drug charge.

• Defendant Donald Glass was charged with committing a murder in aid of racketeering and using a firearm during that murder.

Defendants Alonzo Walton and Antonio Ahmad were also charged with carjacking.  A third defendant, Laderris Dickerson, 45, of Chicago, Illinois, has been charged with the carjacking, but is not charged in the RICO conspiracy. 

Defendant James Travis Riley, 35, of Wichita, Kansas¸ has been charged with possessing methamphetamine with the intent to distribute it, but is not charged in the RICO conspiracy. 

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 FBI Atlanta’s Safe Streets Gang Task Force (composed of members of the FBI, Alpharetta Police Department, Atlanta Police Department, Clayton County Police Department, DeKalb Police Department, Forest Park Police Department, Georgia Dept. of Community Supervision, Georgia Dept. of Corrections, Gwinnett County Police Department, and Marietta Police Department), Internal Revenue Service Criminal Investigation, the United States Marshal’s Service, and the United States Postal Inspection Services.

Assistant United States Attorneys Kim S. Dammers, Stephanie Gabay-Smith, and Ryan K. Buchanan, and DOJ Organized Crime & Gang Section Trial Attorney Hans B. Miller 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 - Bonnie Monique Youn has been sentenced to two years on probation for her role in submitting a false application to adjust status on behalf of a Korean citizen to the Citizenship and Immigration Services.

“Youn is an immigration attorney and has a thorough familiarity with immigration rules yet she advised an alien to fraudulently file an application with immigration services claiming to be employed by an entity she controlled,” said U. S. Attorney John Horn. “Her sentence and prohibition to practice law for two years are appropriate punishment for submitting false information to United States Immigration authorities.”

“Immigration fraud presents a serious threat to the national security of our country,” said Special Agent in Charge of ICE Homeland Security Investigations Atlanta Nick S. Annan. “Illegal schemes like this not only undermine the integrity of our nation's legal immigration system, but they create potential security vulnerabilities while also cheating deserving immigrants of benefits they rightfully deserve."

According to U.S. Attorney Horn, the charges and other information presented in court:   Youn filed an application to adjust status based upon employment on behalf of her client, C.O.M.P. The application stated that C.O.M.P. worked for the Asian American Educational Foundation of Georgia (AAEFG) as an accountant in 2006-07 and again in 2010. The application included wage and tax and payroll records that would appear to support the representation that C.O.M.P. had worked for AAEFG.

In September 2011, federal agents interviewed C.O.M.P. at the hair products business that she and her husband ran near Baton Rouge, Louisiana. C.O.M.P. initially told the agents that she worked for AAEFG in 2006-07 and 2010. As the interview progressed, however, the agents noticed that C.O.M.P., who was standing behind a counter, appeared to be looking down at something before she would answer their questions. When confronted, C.O.M.P. admitted that she was referring to notes that Youn and Youn’s paralegal helped her prepare in the event that she was interviewed by federal agents about her alleged employment at AAEFG. C.O.M.P. admitted that she never worked for AAEFG and that she never lived in Georgia.

She also admitted that she would send money to AAEFG and that AAEFG would in turn send her payroll checks. The false payroll scheme involving C.O.M.P. began when AAEFG was controlled by Youn.

Youn instructed C.O.M.P. to obtain a Georgia driver’s license to use as proof of her residency in the state during the time that she allegedly worked for AAEFG. Although C.O.M.P. never lived in Georgia, she obtained the state driver’s license with the intent to use it to prove that she lived in Georgia and worked at AAEFG in the event she was ever questioned about her alleged employment at AAEFG.

Bonnie Monique Youn, 46, of Tucker, Georgia, was sentenced to two years on probation by U.S. District Judge Amy Totenberg, and was ordered to pay a $5,245 fine. Pursuant to her plea agreement with the United States, Youn closed her law office on March 31, 2016.  As part of her sentence, Youn is prohibited from practicing law until April 1, 2018.  Youn pleaded guilty on Jan. 20, 2016, to a negotiated plea.

This case was investigated by Special Agents with Homeland Security Investigations and the Office of the Inspector General for the United States Department of Labor.

Assistant United States Attorneys William L. McKinnon, Jr. and Lynsey Barron    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 - Isaiah Jernigan, Darren Williamson, Jr., a/k/a Chef Boy RD, Marie St. Vil, a/k/a Jasmine, and Brianne Marcelin, a/k/a Bri, have been sentenced for sex trafficking three minor girls in Atlanta during the 2013 Final Four NCAA Playoffs. 

“As fans descended on Atlanta for the Final Four in 2013, these defendants operated in the shadows, selling these young girls for sex to anyone who would pay,” said U. S. Attorney John Horn.  “The three teenagers who were exploited in this case are tragic examples of how quickly young women can be entrapped into commercial sex trafficking.”

“The sentencing of these four individuals who were previously convicted in federal court of human trafficking is a tremendous victory for the many investigators, counselors and non-government organizations working so hard to protect our nation’s children from those who would prey on them.  While our streets are now safer with the removal of these callous and reprehensible defendants, the fight to eradicate human trafficking continues and the FBI asks that anyone with information regarding such activity to immediately contact their nearest FBI field office or law enforcement agency,” 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:  From approximately mid-March 2013 to April 20, 2013, the four defendants recruited and enticed three juveniles for committing commercial sex acts.  The juveniles ranged in age from 15 to 17 years old.  The group’s criminal scheme also involved adult women engaged in prostitution.

The group recruited the girls and then provided them a place to live at an apartment in Sandy Springs, Georgia.  At least one of the juveniles was required to have sex with Williamson as an “audition” for working for the group as a prostitute.  Members of the group would take photos of the girls in lingerie and then post the photos in advertisements on the website “Backpage.com,” seeking men for commercial sex acts.   Various members of the group drove the girls to their sex-dates at different hotels around town, and on occasion, male customers would also visit the Sandy Springs apartment for commercial sex.  At one point Jernigan knocked one of the adult women to the ground in front of some of the other girls, dragged her into another room, and shaved off some of her hair. 

The defendants’ scheme was uncovered as part of an FBI undercover operation aimed at locating and identifying minor sex traffickers operating during the NCAA Final Four Playoffs in Atlanta, Georgia in April 2103. 

• Isaiah Jernigan, 27, of Orlando, Florida, has been sentenced to 11 years, seven months in prison to be followed by five years of supervised release.

• Darren Williamson, Jr., a/k/a Chef Boy RD, 28, of Atlanta, Georgia, has been sentenced to ten years, three months in prison to be followed by five years of supervised release.

• Marie St. Vil, a/k/a Jasmine, 27, of Orlando, Florida, was sentenced April 14, 2016, to six years in prison to be followed by five years of supervised release.

• Brianne Marceline, a/k/a Bri, 26, of Atlanta, Georgia, was sentenced April 15, 2016, to five years of prison to be followed by five years of supervised release.

All defendants have received a $100 special assessment and are required to register as sex offenders as a condition of their supervised release. 

This case was investigated by the FBI led Metro Atlanta Child Exploitation (MATCH) Task Force.

Assistant United States Attorney Skye Davis prosecuted the case.

Men who think they are buying sex from a consenting adult may actually be contributing to sex trafficking of minors unwittingly. 

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 – Two international computer hackers; Aleksandr Andreevich Panin, a/k/a Gribodemon, of Russia, and Hamza Bendelladj, a/k/a Bx1, of Algeria, have been sentenced to a combined 24 years, six months in prison for their roles in developing and distributing the prolific malware known as SpyEye, which caused hundreds of millions of dollars in losses to the financial industry around the world.

“It is difficult to over state the significance of this case, not only in terms of bringing two prolific computer hackers to justice, but also in disrupting and preventing immeasurable financial losses to individuals and the financial industry around the world,” said U.S. Attorney John Horn.  “The outstanding work by our law enforcement partners, both domestically and internationally, as well as terrific cooperation from the private sector, serves as a blueprint on how to combat complex cyber-crime syndicates around the world.”

“Through these arrests and sentencing, the risk the public unknowingly faced from the threat posed by the imminent release of a new highly sophisticated version of SpyEye was effectively reduced to zero.  The FBI led investigation that brought one of the world’s most nefarious malware developers to justice and significantly disrupted the prolific SpyEye botnet demonstrates the power of focused investigations that combine the skills and talents of global law enforcement and private industry partners.  Furthermore, the arrests and sentences serve as a strong deterrent to future malware developers and their customers, regardless of where they are located,” 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: Until dismantled by the FBI, SpyEye was the preeminent malware banking Trojan from 2010-2012, used by a global syndicate of cybercriminals to infect over 50 million computers, causing close to $1 billion in financial harm to individuals and financial institutions around the globe. 

SpyEye was designed to automate the theft of confidential personal and financial information, such as online banking credentials, credit card information, usernames, passwords, PINs, and other personally identifying information. The malware facilitated its theft of personal and confidential information by secretly infecting victims’ computers, enabling cybercriminals to remotely control the infected computers through command and control (“C2”) servers.  Once a computer was infected and under their control, cybercriminals remotely accessed the infected computers, without authorization, and stole victims’ personal and financial information through a variety of techniques, including “web injects,” “keystroke loggers,” and “credit card grabbers.”  The victims’ stolen personal and financial data was then surreptitiously transmitted to the C2 servers, where it was used to, among other things, steal money from the victims’ financial accounts.

Panin was the primary developer and distributor of SpyEye.  Panin developed SpyEye as a successor to the notorious Zeus malware that had, since 2009, wreaked havoc on financial institutions around the world.  In November 2010, Panin allegedly received the source code and rights to sell Zeus from Evginy Bogachev, a/k/a Slavik, and incorporated many components of Zeus into SpyEye.  Bogachev remains at large and is currently the FBI’s most wanted cybercriminal.

Operating from Russia between 2009 and 2011, Panin conspired with others, including co-defendant Hamza Bendelladj, to develop, market, and sell various versions of SpyEye and component parts on the Internet.  Panin allowed cybercriminals to customize their purchases to include tailor-made methods of obtaining victims’ personal and financial information, as well as marketed versions that targeted information about specific financial institutions, including banks and credit card companies. 

With the assistance of Bendelladj, a/k/a Bx1, Panin advertised and promoted the SpyEye malware on online, invite-only criminal forums, such as Darkode.com and other exclusive Russian-based criminal forums.  The arrest of Bendelladj in January 2013 was a contributing factor that ultimately led to the dismantling of Darkode.com through a coordinated law enforcement effort involving 20 countries in July 2015.

For his part, Bendelladj transmitted over one million spam emails containing strains of SpyEye and related malware to computers in the United States, yielding hundreds of thousands of infected computers.  He also developed and sold malicious “plugins” or add-ons for botnets, such as a “spreader”, Automated Transfer System (“ATS”), and “web injects”.  These malicious tools were designed to surreptitiously automate the theft of funds from victim bank accounts and to proliferate the spread of malware, including SpyEye and Zeus. Bendelladj used his unauthorized access into infected computers to steal personal identifying information from close to half a million people, hundreds of thousands of credit card and bank account numbers, causing millions of dollars in losses to individuals and financial institutions around the world. Bendelladj also ran a website called VCC.sc where he automated the sale of stolen credit card information to cybercriminals around the world.

On December 20, 2011, a Northern District of Georgia grand jury returned a 23-count indictment against Panin, who had yet to be fully identified, and Bendelladj.  The indictment charged one count of conspiracy to commit wire and bank fraud, 10 counts of wire fraud, one count of conspiracy to commit computer fraud, and 11 counts of computer fraud. A superseding indictment was subsequently returned identifying Panin by his true name. 

Panin was arrested by U.S. authorities on July 1, 2013, when he flew through Hartsfield-Jackson Atlanta International Airport.  On January 28, 2014, Panin pleaded guilty to conspiring to commit wire fraud and bank fraud. Bendelladj was apprehended at Suvarnabhumi Airport in Bangkok, Thailand, on January 5, 2013, while he was in transit from Malaysia to Algeria.  Bendelladj was extradited from Thailand to the United States on May 2, 2013.  On June 26, 2015, Bendelladj pleaded guilty to all 23 counts of the superseding indictment.

The apprehension of Panin and Bendelladj has resulted in several of the world’s top malware developers no longer being in a position to create malware that can victimize people in the U.S. and abroad. The FBI discovered that within months of his arrest, Panin was planning to release a new strain of SpyEye, called “SpyEye 2.0”, which, if released, would have been one of the most prolific and undetectable botnets distributed to date, and cause immeasurable losses to the international banking industry and individuals around the world.  The investigation has also led to the arrests by foreign authorities of four of Panin’s SpyEye clients and associates in the United Kingdom and Bulgaria. 

• Aleksandr Andreevich Panin, a/k/a Gribodemon, 27, of Tver, Russia, was sentenced by United States District Court Judge Amy Totenberg, to nine years, six months in prison to be followed by three years of supervised release.

• Hamza Bendelladj, a/k/a Bx1, 27, of Tizi Ouzou, Algeria, was also sentenced by Judge Totenberg, to 15 years in prison to be followed by three years of supervised release.

This case was investigated by Special Agents of the Federal Bureau of Investigation. The FBI disrupted and dismantled the organizational structure behind SpyEye by utilizing unprecedented levels of cooperation with private industry and 26 international law enforcement agencies, demonstrating international boundaries no longer offer safe havens for cyber criminals.

Assistant United States Attorneys Steven D. Grimberg, Kamal Ghali, and Scott Ferber prosecuted the case. Trial Attorneys from the Criminal Division’s Computer Crime and Intellectual Property Section provided valuable assistance.  The Justice Department’s Office of International Affairs also provided assistance with this case.

Assistance throughout the investigation was also provided by a number of international law enforcement agencies, including the United Kingdom’s National Crime Agency, the Royal Thai Police, the National Police of the Netherlands - National High Tech Crime Unit (NHTCU), Dominican Republic’s Departamento Nacional de Investigaciones (DNI), the Cybercrime Department at the State Agency for National Security-Bulgaria, and the Australian Federal Police (AFP). 

Private sector partners also provided valuable assistance, including Trend Micro’s Forward-looking Threat Research (FTR) Team, Microsoft’s Digital Crimes Unit, Flashpoint, PhishLabs, Dell SecureWorks, Damballa, and the Norwegian Security Research Team known as “Underworld.no”. 

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 it has reached a settlement with dermatologists Margaret Kopchick, M.D., and Russell Burken, M.D., and their practice group, Toccoa Clinic Medical Associates, who agreed collectively to pay $1.9 million to settle claims that they violated the False Claims Act by billing Medicare for evaluation and management (E&M) services that were not permitted by Medicare rules.

“Physicians and practice groups are expected to bill Medicare for the costs of the services they provide.  However, when they improperly bill for those services, it affects those who depend on Medicare by taking available dollars away from the program,” said U.S. Attorney John Horn.  “Those who inflate their Medicare billings can expect recovery of any overpayments, as well as significant penalties under the False Claims Act.”

“The improper billing of evaluation and management services cost the taxpayers millions of dollars each year and drain the Medicare Trust Fund,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) for the Atlanta region.  “The OIG and the U.S. Attorney’s Office will continue to hold health care providers like these responsible for improper claims.”

The civil settlement resolves the United States’ investigation into Drs. Burken and Kopchick’s billing for E&M services on the same day as a procedure. Providers are not permitted to bill both E&M services and a procedure on the same day under the Medicare program’s regulations unless a significant, separately identifiable service has been performed. In addition, where a significant, separately identifiable service has been performed, providers must bill the appropriate level of E&M service. More complex E&M services are reimbursed at higher rates. Here, the United States alleged that Drs. Burken and Kopchick billed for E&M services along with procedures where no significant and separately identifiable service was performed, and upcoded E&M services to higher levels than were appropriate, leading to overpayments by Medicare.

HHS-OIG has identified the inappropriate billing of E&M services as a national issue costing taxpayers billions of dollars. 

This resolution is part of the government’s emphasis on combating health care fraud under the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by the Secretary of the Department of Health and Human Services in May 2009. 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 that effort is the False Claims Act. Since January 2009, the Justice Department recovered more than $27.4 billion through False Claims Act cases, with more than $17.4 billion of that amount recovered in cases involving fraud against federal health care programs.

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

Assistant United States Attorney Emily Shingler reached the civil settlement.

The claims settled by the settlement agreement are allegations only; 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 U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA –Dr. Michael Jon Kell has been arraigned on four counts of tax evasion and one count of interfering with the administration of the Internal Revenue laws. Kell allegedly engaged in a two-decade scheme to evade federal taxes by funneling millions of dollars in assets through a church he created.

“Kell claimed a vow of poverty, but allegedly funneled over $2 million through a church he controlled to avoid paying income taxes on the money he earned,” said U.S. Attorney John Horn.  “With the deadline for filing your 2015 tax return only days away, we urge citizens in our district to think twice about the potential consequences of not truthfully reporting their income and paying their taxes.”  

“Tax evasion is not a victimless crime,” said Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “We all pay when others swindle the government. To maintain faith in our nation's tax system, honest taxpayers need to be reassured that everyone is paying their fair share, including Michael Jon Kell. The IRS and Department of Justice remain determined and vigilant in ferreting out such schemes to cheat the honest taxpayers.”

According to U.S. Attorney Horn, the charges, and other information presented in court:  The indictment alleges the lengths to which Kell went to avoid paying taxes. Although no longer a practicing medical doctor, he developed numerous patented technologies and was a consultant, which generated millions of dollars in income over the years. To hide this income, he founded and served as the “pastor” of the First Meliorite Church, a church he claimed was a branch of the Universal Life Church.

Claiming to be under a “vow of poverty” that precluded him from earning income, Kell directed his substantial income and assets into bank accounts belonging to the church—all of which were under Kell’s exclusive control.  He used these accounts to cover all of his personal expenses including; overseas vacations, dining out, high-end clothing purchases, online dating services, and private school tuition for his children. Kell also transferred ownership of his multi-million dollar residence in Vinings, Georgia, several times over the years to various entities he created and controlled, all in an effort to protect that property from creditors, including the Internal Revenue Service.

Dr. Michael Jon Kell, 66, of Vinings, Georgia, was arraigned by United States Magistrate Judge Janet F. King.

In an unrelated tax fraud case, three individuals, Lorri Jackson-Brown, Cherri Dallas, and Gabrielle Rhodes, have been charged with 41 counts including conspiracy, mail fraud and theft of government money.  The three defendants are alleged to have conspired with each other and with a fourth individual, Wayne Pettway, to register sham businesses with the Georgia Secretary of State, obtain Employer Identification Numbers (EINs) for businesses, and file fraudulent tax returns in the names of those businesses. The filed tax returns allegedly claimed fictitious income amounts, deductions and fuel excise credits, all for the purpose of generating fraudulent tax refunds. 

Lorri Jackson-Brown, 51, of Lawrenceville, Georgia, Cherri Dallas, 45, of Atlanta, Georgia, and Gabrielle Rhodes, 35 of Loganville, Georgia were indicted on March 22, 2016.  Wayne Pettway, 53, of Lawrenceville, Georgia, pled guilty to conspiracy to commit theft of government money on November 21, 2014.

Assistant United States Attorney Lynsey M. Barron is prosecuting the Kell case.  Assistant United States Attorney Stephen H. McClain is prosecuting the above cases.

Members of the public are reminded that the indictments only contain 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.

These cases are being investigated by the Internal Revenue Service Criminal Investigation.

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.

George H. Bell, a former Georgia Department of Transportation maintenance foreman, entered a guilty plea in federal court to accepting bribe payments in exchange for allowing more than 38,000 cubic yards of unsuitable dirt to be dumped at DOT sites in metro-Atlanta.

“As a DOT supervisor, Bell accepted thousands of dollars in bribes in exchange for allowing others to dump unsuitable dirt, all at the expense of the environment and the people of this district,” said U. S. Attorney John A. Horn.  “His criminal conduct resulted in environmental damage and has already left Georgia taxpayers with a staggering $2.5 million clean-up bill.”

“Public corruption comes in many forms but, at its core, established rules and policy are intentionally ignored, often for personal gain. That was the case here and it comes at great expense to the taxpaying public. It is because of the serious consequences as seen here that public corruption remains the FBI’s number one criminal program priority,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.

“The Georgia DOT reported the issue and has cooperated fully with all agencies involved in the investigation to ensure that all responsible parties are held accountable and prosecuted to the fullest extent of the law for these illegal actions,” said Georgia DOT Commissioner Russell R. McMurry.  “We are appalled by the corrupt actions of this lone former employee that in no way reflect the hard work and commitment displayed by more than 4,000 GDOT employees.”

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

From approximately April to December 2014, Bell accepted cash bribe payments from the owners of a dirt hauling company that is not identified in court proceedings (“Owners”). In exchange for those bribe payments, Bell allowed the Owners to dump unsuitable dirt at various GA DOT locations around metro-Atlanta. Unsuitable dirt is dirt that is 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 fragments, and various pieces of metal.

More specifically, in April 2014, one of the Owners asked Bell if the GA DOT would accept multiple loads of dirt. Bell allowed the unsuitable dirt to be dumped at a GA DOT site, but then charged the Owner $600 to dump the dirt.  Bell used GA DOT personnel and equipment to spread the dirt after the Owners had dumped it. After that, Bell and the Owners agreed that Bell would charge the Owners about $5 per load (if the Owners spread the dirt themselves) and $7 per load (if Bell used GA DOT personnel and equipment to spread the dirt).  For several months thereafter, Bell accepted bribe payments from the Owners in exchange for allowing the Owners to illegally dump unsuitable dirt at a GA DOT location. In total, the Owners paid Bell approximately $15,000 in cash bribe payments.

Bell allowed the Owners to dump well over 1000 dump truck loads of unsuitable dirt at the GA DOT sites located at: (1) Hugh Howell Road and Stone Mountain Highway, 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.  Bell permitted over 38,000 cubic yards of dirt to be dumped at the GA DOT location near Hugh Howell Road alone. Unfortunately, Bell also allowed the Owners to dump the dirt at a protected wetland site and at a site 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 have already exceeded $2.5 million.

On August 11, 201, Bell, 49, of Lithonia, Georgia, was indicted by a federal grand jury on bribery charges.  Under federal law, conspiring to accept bribe payments carries a maximum sentence of five years in prison and a fine of up to $250,000.

The sentencing hearing for Bell has been scheduled for June 29, 2016, before U.S. District Judge Thomas. W. Thrash, Jr.

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

Assistant United States Attorney Jeffrey W.  Davis is 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 - Kesia Quinette Jackson, Deanthony L. Foster, and Makisha Renee Sanders have been arraigned on charges of conspiracy to commit armed robbery, armed robber, and use of a firearm during a crime of violence arising from multiple armed robberies of Wal-Mart stores, and a Citgo food mart that took place between May and October, 2015. 

“Armed robberies are dangerous events that traumatize the victims and sow fears throughout the community, and these effects are magnified when the robbers victimize multiple locations over time,” said U. S. Attorney John Horn.  “We hope the arrests and indictments in this case will restore the security felt by the employees and customers of these stores, as well as the surrounding neighborhoods.”

“The allegations contained in these indictments clearly illustrated the need to prioritize this investigation and to have those responsible identified and apprehended. With the federal indictments and this morning’s arrests, that was accomplished.  Numerous jurisdictions were impacted by these multiple commercial armed robberies creating certain challenges for investigators.  Those challenges were, however,  overcome as a direct result of the hard work and determination of the many officers and agents representing numerous metro Atlanta area law enforcement agencies working together with the FBI’s Atlanta Metro Major Offender (AMMO) Task Force,” 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: The defendants allegedly targeted Wal-Mart stores and a Citgo Food Mart in different areas of the Atlanta, Georgia metropolitan area for the purpose of robbing the employees of cash at gunpoint.  Jackson and Sanders acted as scouts or lookouts prior to the robberies by entering the stores and posing as customers in order to determine when employees were removing cash from the self-checkout registers. They would then contact the defendant Foster.  The three defendants used cellular telephones to maintain communication with each other prior to and during the commission of the armed robberies.  Foster would then enter the stores wearing a surgical mask and using a firearm to rob the employees of cash.  In the last robbery, he discharged the firearm into the floor near the employees. 

Kesia Quinette Jackson, 44, Deanthony L. Foster, 27, and Makisha Renee Sanders, 42, all of Atlanta, Georgia, were arraigned before United States Magistrate Judge Janet F. King.  All three were indicted by a federal grand jury on April 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 FBI.

AUSAs Katherine M. Hoffer and Jessica Morris 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.

ROME, Ga. – Seven defendants have been indicted on federal charges of a conspiracy to steal firearms from the premises of federal firearms dealers, possession of multiple stolen firearms, and theft from firearms dealers in the cities of Tallapoosa, Thomson, Monroe, Warner Robins, Dalton, Macon, LaGrange, and Athens, Georgia as well as Heflin, Alabama. 

“Thefts from firearms dealers have become a serious issue in our district and elsewhere, and sometimes stolen firearms are used to commit other crimes,” said U. S. Attorney John A. Horn.  “The arrests and indictment of these seven individuals is a significant step in solving these crimes and helping to prevent the distribution of stolen firearms in our community.” 

“This is another reminder that ATF and our law enforcement partners will remain on the frontlines of preventing violent crime and not allow criminal behavior to threaten 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 October 2015 and December 2015, there were seven thefts and three attempted thefts from firearms dealers in Northwest Georgia, along with other parts of the state, as well as in the state of Alabama. The indictment alleges that during the investigation, these seven defendants were identified as the ones who committed the burglaries.  The perpetrators always struck at night.  They entered either by driving a stolen car through the storefront, or using bolt cutters and a window punch to break into the businesses.  Approximately 130 guns were stolen in these thefts, and there is evidence that some of the conspirators sold some of the stolen guns.  

ATF agents worked closely with local law enforcement to connect the thefts and develop information on the conspirators, including the Tallapoosa Police Department, Dalton Police Department, Clayton County Police Department, Bibb County Sheriff’s Office, Monroe Police Department, Thomson Police Department, Athens-Clarke County Police Department, Warner Robbins Police Department, Lagrange Police Department, and the Pearl, Mississippi Police Department.   

The following defendants were arraigned on April 13, 2016, before United States Magistrate Judge Walter E. Johnson:

• Terry Eugene Brown, 26, of Atlanta, Georgia, has been charged with conspiracy to possess and steal firearms, three counts of theft of firearms from federally licensed dealers, three counts of possession of stolen firearms, and unlawful possession of firearms while pending felony indictment .

• Jakeisia Miller, 19, of Atlanta, Georgia has been charged with conspiracy to possess and steal firearms, three counts of aiding and abetting the theft of firearms from federally licensed dealers, and three counts of aiding and abetting the possession of stolen firearms.

• Demontra Sharod Lucear, 26, of Atlanta, Georgia has been charged with conspiracy to possess and steal firearms.

• Dillon James Leborgne, 21, of Atlanta, Georgia conspiracy to possess and steal firearms, three counts of theft of firearms from federally licensed dealers, and three counts of possession of stolen firearms.

• Eric Jerome Moore, 22, of Atlanta, Georgia, has been has been charged with conspiracy to possess and steal firearms, one count of theft of firearms from a federally licensed dealer, one count of possession of stolen firearms, and unlawful possession by a convicted felon.

The following two defendants will be arraigned on May 3, 2016:

• Jacquez Miller, 23, of Atlanta, Georgia has been charged conspiracy to possess and steal firearms, one count of theft of firearms from a federally licensed dealer, and one count of possession of stolen firearms.

• Jameel Yusef Drinkard, 35, of Atlanta, Georgia, has been charged with conspiracy to possess and steal firearms, one count of theft of firearms from a federally licensed dealer, one count of possession of stolen firearms, and unlawful possession by a convicted felon.

Brown, Jakeisia Miller, Jacquez Miller, Lucear, Leborgne, Moore, and Drinkard were indicted by a federal grand jury on March 22, 2016. 

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 Bureau of Alcohol, Tobacco, Firearms and Explosives, Tallapoosa Police Department, Dalton Police Department, Clayton County Police Department, Bibb County Sheriff’s Office, Monroe Police Department, Thomson Police Department, Athens-Clarke County Police Department, Warner Robbins Police Department, Lagrange Police Department, and the Pearl, Mississippi Police Department.

Assistant United States Attorneys Jennifer Keen and Katherine M. Hoffer 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.

Reginald Perkins, who admitted he laundered approximately $1 million of illegal proceeds from inside Autry State Prison, has pleaded guilty to a charge of conspiring to launder money as part of a wide-ranging federal investigation of criminal activity and corruption inside Georgia State prisons.

“This case re-emphasizes the widespread and corrosive effects that cell phones have in prisons,” said U. S. Attorney John Horn.  “A prison is the last place where criminal activity like this should be occurring, and the fact that the amount of money laundered through this inmate’s conduct totals $1 million is mind-boggling.”

“The level of victimization that this Georgia Department of Corrections inmate could cause is astonishing and disheartening.  Prison can be a mix of punishment or rehabilitation for the many inmates living within its walls.  For Mr. Perkins, his prison experience clearly lacks any signs of rehabilitation and, because of his continued and unrepentant criminal conduct, it will now be longer,” 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 in Jimmy Autry State Prison (“Autry”).  Autry is a Georgia Department of Correction (“GA DOC”) medium security prison located in Pelham, Georgia, that houses approximately 1,700 adult male inmates. 

While Perkins was an inmate at Autry, GA DOC inmates regularly obtained cellular telephones. For example, from 2014 to 2015, GA DOC 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 GA DOC inmates creates a significant risk to prison security and to public safety, as GA DOC 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 potential victims had unlawfully failed to appear for jury duty; (c) that because the potential victims had failed to appear for jury duty, warrants had been issued for the victims’ arrest; and (d) that the potential 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 took 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, 35, of Atlanta, Georgia pleaded guilty to one count of money laundering in a hearing before U.S. District Judge Steve C. Jones.  Sentencing is scheduled for June 20, 2016.

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

ATLANTA – Robert E. Windsor, an Atlanta-area physician, has pleaded guilty to health care fraud for filing claims for surgical monitoring services he did not perform.

“Windsor put patients at risk by passing the surgical monitoring work he was paid to perform to an unauthorized medical assistant and then lied about it,” said U.S. Attorney John Horn. “This doctor’s scam left patients without a qualified physician monitoring their neurological health during surgery and cheated other healthcare providers out of over $1 million.”

“The conduct of Dr. Windsor was not only criminal, it was reckless and irresponsible.  While Dr. Winsor's repeated and extensive practice of falsely billing for services that he himself did not render is at the heart of these federal charges, the potential risk and harm to those many patients who were not getting the required services should not be overlooked.   This guilty plea will hold Dr. Windsor accountable for his greed based criminal conduct,” said J. Britt Johnson, FBI Special Agent in Charge,

“The callous disregard for patient safety, coupled with the arrogance of billing for services performed by an untrained employee, is shocking,” said Derrick Jackson, Special Agent in Charge for the HHS Office of Inspector General.  “Together with our law enforcement partners, we will seek justice for Medicare beneficiaries and the program they depend upon and trust when they need health care services.”

“Health care fraud is a serious problem that undermines the ability of the Department of Defense to focus on warfighting and defense by diverting precious taxpayer dollars from our national security efforts.  DCIS will relentlessly investigate those who defraud DoD’s critical programs, bring violators to justice, and recover funds wherever possible,” said John F. Khin, Special Agent in Charge of the Southeast Field Office-Defense Criminal Investigative Service.

According to United States 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. In 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 contract stated that Windsor would provide real-time monitoring services for patients in surgery via an online platform with technologists in the operating room. Windsor was responsible for providing a final monitoring report at the conclusion of each surgery, and ANA and its sister company would thereafter bill patients and health care benefit programs, including private health insurance companies, for the monitoring. Windsor was paid a fee for each surgery monitored.  

Between at least January 2010 through July 2013, Windsor instead assigned the monitoring to a medical assistant who impersonated Windsor by using Windsor’s log-in credentials in the online platform. The medical assistant was not a doctor and was not permitted to perform the monitoring under the contract with ANA. Windsor submitted final monitoring reports falsely stating that he had conducted the monitoring, which ANA and its sister company relied upon in billing health care benefit programs for his services. On several occasions, Windsor billed ANA for monitoring services he purportedly performed when he was actually traveling on an international flight.

In total, after collecting reimbursements from insurers, ANA paid Windsor over $1.1 million for monitoring services he did not perform during this time period. 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, 54, of Cumming, Georgia, pleaded guilty before U.S. District Court Judge Amy Totenberg. Sentencing for Windsor is scheduled for June 3, 2016 at 10:30 a.m.

This case is being 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 Attorney Nathan P. Kitchens is prosecuting the case. Former Assistant United States Attorney Jamie L. Mickelson prosecuted the case prior to the 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 – Stanley J. Kowalewski has been sentenced to 18 years in federal prison for defrauding the investors in his former hedge funds and obstructing the U.S. Securities and Exchange Commission’s (SEC) investigation into his activities. 

“Investors trusted Kowalewski to invest their money as promised,” said U.S. Attorney John A. Horn.  “Instead, he stole their hard-earned savings and repeatedly lied to them and the SEC about his investments and self-dealing.  Incredibly, while on bond awaiting trial in the case, Kowalewski continued to defraud investors based on false promises relating to a new investment business that turned out to be just another scam.”

“While sentencing Mr. Kowalewski to federal prison does not make his many investor turned victims fiscally whole again, denying him his freedom and the opportunity to enjoy their money does have value.  It is unfortunate, however, that, in the aftermath of the high profile Madoff case and others like it, we are still plagued with large scale investment fraud schemes such as this.  The FBI will continue to work with its many partners, to include the SEC, in identifying, investigating, and presenting for prosecution those individuals that would engage in greed based criminal schemes that defraud so many people,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.

“This criminal action demonstrates the U.S. Department of Labor's resolve to vigorously enforce the law to ensure that those who defraud employee benefit plans are brought to justice. This case also exemplifies our commitment to protect employee benefits in coordination with fellow federal agencies,” said Isabel Colon, Regional Director of the Employee Benefits Security Administration’s Atlanta Regional Office.

According to U.S. Attorney Horn, the charges and other information presented in court:  Kowalewski was the sole owner and Chief Executive Officer of SJK Investment Management, LLC, in Greensboro, North Carolina.  Beginning in 2009, Kowalewski solicited investment money from pension funds, school endowments, hospitals, non-profit foundations, and other investors which he placed in two SJK “hedge fund of funds,” an onshore fund and an offshore fund called the Absolute Return Funds.  Almost immediately after receiving the first investor money, Kowalewski began diverting the proceeds to pay for personal and business overhead expenses.

In December 2009, Kowalewski formed a new SJK fund called the Special Opportunities Fund, which he did not disclose to investors.  He diverted over $16 million from the Absolute Return Funds to the Special Opportunities Fund without disclosing the transfers to investors.  After he secretly transferred the funds, Kowalewski diverted millions from the Special Opportunities Fund to himself through various self-dealing transactions, including having the Special Opportunities Fund buy three homes that Kowalewski owned and in which his family, his parents, and his brother-in-law’s family lived.  Kowalewski also bought a multi-million-dollar beach house in Pawleys Island, South Carolina, and directed that the Special Opportunities Fund pay him $4 million as a fee to which he was not entitled.  Kowalewski created and altered documents in an effort to make these transactions appear legitimate.

Also as part of the scheme, Kowalewski overvalued the assets held by the Special Opportunities Fund and used those fraudulent valuations to calculate the returns for investors in the Absolute Return Funds.  As a result, the monthly statements distributed to SJK investors showed fraudulently inflated returns.  Investors lost over $11 million as a result of Kowalewski’s fraudulent scheme.

On March 30, 2010, the SEC initiated a proceeding to determine whether there had been violations of the federal securities laws in connection with SJK.  As part of its investigation, the SEC subpoenaed Kowalewski to testify under oath.  During his sworn testimony, Kowalewski testified that, after the Special Opportunities Fund had purchased his three homes, the Fund had leased the properties to him and his relatives, each for a yearly rental payment.  He testified further that Michael J. Fulcher, the Chief Financial Officer of SJK, had drafted, and Kowalewski had signed, the leases at or near the time of the homes’ sales.  In truth, however, Kowalewski and his relatives had never leased the homes back from the Special Opportunities Fund.  Prior to Kowalewski’s sworn testimony, Kowalewski and Fulcher conspired to obstruct the SEC proceeding by creating the leases and backdating them, in an effort to document the claimed lease relationships and to conceal Kowalewski’s self-dealing transactions.  Kowalewski provided the fraudulent leases to the SEC as part of the investigation and then testified falsely about them.  Kowalewski further lied to the SEC in his sworn testimony when he testified that he had disclosed the Special Opportunities Fund to investors and attorneys and other professionals had approved of his self-dealing transactions. 

While on bond awaiting trial in this case, Kowalewski defrauded investors in another company he controlled named Global Remediation Solutions.  He solicited money from investors based on false pretenses and then misrepresented to them how he spent the money.  As before, he diverted the investors’ money to his own personal use.  Kowalewski was living in Pawleys Island at the time.  After Kowalewski’s new fraud came to light, his bond was revoked.  Kowalewski has been in custody based on that revocation since September 25, 2015.

Stanley J. Kowalewski, 44, of Pawleys Island, South Carolina, was sentenced by U.S. District Judge Richard W. Story to 18 years in prison, with credit for the time served since September 25, 2015, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $9,436,236.23.  Kowalewski was convicted on 22 counts of wire fraud, one count of conspiracy, and one count of obstructing the SEC proceeding in November 2015 after a jury trial.

Michael J. Fulcher, 59, of Greensboro, North Carolina, has pleaded guilty to one count of conspiring with Kowalewski to obstruct the SEC proceeding.  His sentencing date has not yet been scheduled.

This case was investigated by Special Agents of the Federal Bureau of Investigation, Investigators with the Atlanta Regional Office of the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA), and Special Agents of the Atlanta Regional Office of the U.S. Department of Labor’s Office of the Inspector General.  The Atlanta Division Office of the U.S. Securities and Exchange Commission previously brought a civil action against Kowalewski.  In that case, Kowalewski was ordered to pay over $16 million in disgorgement and civil penalties.

Assistant United States Attorneys Stephen H. McClain and J. Russell Phillips 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 - Ovino Harris has been sentenced to 10 years, 10 months in federal prison for attempting to rob the Wellesley Inn Atlanta Airport Hotel, in what was believed to be one of a string of ATM machine thefts in the Atlanta, Georgia, area.

“Harris and his group were so audacious that they even threatened to shoot a hotel clerk in order to steal an ATM,” said U. S. Attorney John Horn.  “This group has been dismantled thanks to the tremendous work of the Atlanta Police Department and the FBI.” 

“The sentencing of Mr. Harris to federal prison will not only hold him accountable for his criminal actions as well as removing him from our streets, but it also clearly illustrates that Atlanta law enforcement will bring all of its resources to bear in addressing these aggressive theft rings,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.

“Each time we’re able to get a criminal off the streets, it’s a good day,” said Atlanta Police Chief George Turner.  “The arrest and conviction of Ovino Harris is yet another example of why the partnership between the Atlanta Police Department and the FBI is critical to making Atlanta the safest big city in the nation.”

According to U.S. Attorney Horn, the charges and other information presented in court: Harris was believed to be the leader of a group known as the “Green Team,” that operated out of the Pittsburgh area of Atlanta and engaged in various criminal activities including the theft of ATM machines from local businesses.  Green Team members would frequently break into closed businesses, attach chains or ropes to an ATM machine while attaching the other end to a van or truck, and pull the ATM machine from the store. 

During the early morning hours of December 4, 2013, however, Harris traveled to the Wellesley Inn Atlanta Airport Hotel where he and four other Green Team members attempted to steal the ATM machine from within the hotel lobby by threatening to shoot the hotel clerk.  Law enforcement was called to the area, and the men fled before they could be apprehended.

Then, on December 22, 2013, and again on December 27, 2013, members of the Green Team traveled to the CVS Pharmacy located on North Highland Avenue in Atlanta where they attempted to steal the ATM machine from inside the store.  Harris was arrested and arraigned on July 9, 2014.

Ovino Harris, 35, of Atlanta, Georgia, has been sentenced by United States District Judge Amy Totenberg to 10 years, 10 months in prison to be followed by three years of supervised release.  Harris was convicted on these charges on December 15, 2015, after he pleaded guilty.  All of Harris’ co-defendants have also pled guilty in this matter.  Five of Harris’ co-defendants have already been sentenced, with one additional co-defendant awaiting sentencing.

This case was investigated by the Atlanta Police Department and Federal Bureau of Investigation.

Assistant United States Attorneys Matthew S Carrico and Kim S. 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 - Frederick Jenkins and Willie Jenkins have each been sentenced to over six years in federal prison after a jury convicted them of preparing and filing false tax returns with the Internal Revenue Service.

“The defendants in this case blatantly stole from their clients and left them to deal with the tax liability,” said U. S. Attorney John Horn. “It’s important to be careful when selecting someone to prepare tax returns.  Demand to see what your tax preparer files with the IRS and ask questions, especially if the return seems too good to be true.”  

“Return Preparer fraud is a top priority for IRS Criminal Investigation and we have committed many resources to investigating and prosecuting cases just like these,” said Veronica Hyman-Pillot, Special Agent in Charge, Atlanta Field Office. “Return preparers who concoct schemes to defraud the government, the tax paying public and their own clients face federal prosecution and federal prison. It is our hope that the sentencing of Willie and Frederick Jenkins helps reassure our communities that return preparers who lack integrity and engage in illegal activities will be held accountable for their actions.”

“Frederick and Willie Jenkins did a disservice to legitimate tax preparers who comply with Georgia tax law. The Jenkins’ not only violated the integrity of our tax system, but also placed an unfair burden on the hardworking taxpayers of Georgia. We will continue to find and track others who seek to defraud the taxpayers of our state,” said Josh Waites Director of the Office of Special Investigations, Georgia Department of Revenue.

According to U.S. Attorney Horn, the charges and other information presented in court: Between 2009 and 2012, Fredrick and Willie Jenkins prepared and filed thousands of tax returns at Global Tax Service, a business they managed together. The defendants created fictitious, unprofitable businesses that they listed on their clients’ tax returns as a way to generate fraudulent deductions. Those deductions lowered the clients’ taxable income and made their refunds larger. Ultimately, however, the clients were left to resolve their situations with the IRS and state authorities, while the defendants kept the fees they charged for preparing the returns.

In the end, Fred and Willie Jenkins conspired to create fraudulent business deductions that resulted in a tax loss of over $3.5 million.

• Frederick Jenkins, 43, of Douglasville, Georgia, was sentenced to six years, six months in prison to be followed by three years of supervised release, a special assessment of $1100, and restitution of $3.5 million to the IRS.

• Willie Jenkins, 46, also of Douglasville, was sentenced to six years, three months in prison to be followed by three years of supervised release, a special assessment of $700, and restitution of $3.5 million to the IRS.

Both Defendants were found guilty by a jury on October 26, 2015, following a week-long trial.

This case was investigated by the Internal Revenue Service Criminal Investigation and the Office of Special Investigations, Georgia Department of Revenue.

Assistant United States Attorneys Bernita B. Malloy and Christopher C. Bly 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. Debra Johnson-Jordan, who claimed for seven years that she was a “private sovereign citizen” and not subject to federal income tax laws, has been sentenced to one year and one day in federal prison after pleading guilty to a federal tax evasion charge.    

“Hard-working taxpayers should not have to shoulder the burden for people, like Dr. Johnson-Jordan, who fail to pay their taxes because of spurious claims that they’re above the law,” said U.S. Attorney John Horn.  “This case shows that there are serious consequences for those who intentionally avoid their tax obligations.”

“The law is clear on the issue of taxable income and who is required to file and pay taxes: there is no gray area on the subject,” said Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “We should not forget that the ultimate victims in tax fraud cases are the people of the United States – those honest taxpayers who diligently file tax returns each year.  It is our hope that today's sentence will send a strong message, that schemes to avoid paying taxes are a violation of the Federal Tax laws and the consequences of such schemes can and will result in jail time.”

According to U.S. Attorney Horn, the indictment, and other information presented in court: Johnson-Jordan, who practiced medicine in East Point, Georgia, failed to file income tax returns and pay federal income taxes from at least 1997 to 2014.  Johnson-Jordan maintained she was exempt from paying federal income taxes despite earnings in excess of $1.5 million dollars because she claimed she was a “private sovereign citizen” and not subject to federal income tax laws. She ignored numerous notices from the IRS explaining her tax liability and warning of criminal penalties if she failed to comply with tax laws. Despite these warnings, Johnson-Jordan sent correspondence to her employer, the IRS and the U.S. Attorney’s office raising frivolous arguments and continued to challenge her tax liability until she was indicted in August 2015. 

Debra Johnson-Jordan, 58, of Winder, Georgia, was sentenced to one year, one day in federal prison, three years of supervised release, $100 special assessment, 60 hours of community service and restitution in the amount of $464,432.00 to the IRS.

This case was investigated by the Internal Revenue Service Criminal Investigation.

Assistant U.S. Attorney Jeffrey Brown 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 - Ryan Sylvestre, a/k/a Fly, a/k/a Nature has been sentenced to three years, nine months in prison after a jury convicted him of bank fraud conspiracy, bank fraud, and aggravated identity theft stemming from his role in a scheme that stole hundreds of thousands of dollars from banks across the Southeast. 

“Sylvestre and his co-conspirators stole hundreds of thousands of dollars from numerous bank accounts across the Southeast,” said U. S. Attorney John Horn.  “His elaborate scheme reinforces that identity thieves will go to almost any length to enrich themselves at the expense of their victims.”

“Bank fraud is not a victimless crime and the FBI will continue to dedicate significant investigative resources toward investigating and presenting for prosecution those who would engage in such criminal activities.  The FBI is proud of the role that it played in the sentencing of Ryan Sylvestre, which removes a key crime figure from our streets,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.

“Bank fraud is one of the largest challenges facing financial institutions today,” said Malcolm D. Wiley, Sr., Acting Special Agent in Charge of the United States Secret Service, Atlanta Field Office.  “The Unites States Secret Service will continue to collaborate with its law enforcement partners to target and arrest individuals who violate the trust the public has in our economic system.  This sentence should serve as a reminder that criminals will bear the consequences of their actions and be sent to prison for their crimes.”

According to U.S. Attorney Horn, the charges and other information presented in court: In 2013, Sylvestre, along with co-conspirators Richaad T. Mason, a.k.a. “Cap,” Carley Carpenter, and April M. Hayes, stole hundreds of thousands of dollars from SunTrust, Bank of America, and Wells Fargo bank accounts.  After obtaining counterfeit checks that contained the confidential account information of customers at the three banking institutions, this group recruited individuals to cash the counterfeit and forged checks. 

Sylvestre personally recruited women to cash forged checks.  The checks were written out in the names of the recruited check cashers.  The crew was responsible for cashing checks at various banks in Georgia, Virginia, North Carolina, and Florida, among other places.  On multiple occasions, Sylvestre picked up the check cashers from their homes, gave them forged and counterfeit checks, drove them to the bank, and collected the proceeds.  He also permitted his co-conspirators to use his rental car to cash checks in Savannah, Georgia and Virginia. 

Other co-conspirators, some of whom await sentencing, include:

• Richaad T. Mason, a.k.a. “Cap,” 24, or Atlanta, Georgia, who pleaded guilty to aggravated identity theft and bank fraud conspiracy on June 15, 2015.

• Carley T. Carpenter, 26, of Atlanta, Georgia, who pleaded guilty to bank fraud conspiracy on September 18, 2015.

• April M. Hayes, 24, or Braselton, Georgia, who pleaded guilty to aggravated identity theft and bank fraud conspiracy on June 22, 2015.

Ryan Sylvestre, a/k/a Fly, a/k/a Nature, 32, of Atlanta, Georgia, was sentenced to three years, nine months in prison to be followed by three years of supervised release.  He was indicted for bank fraud, conspiracy to commit bank fraud, and aggravated identity theft on October 27, 2015, and found guilty by a jury on December 16, 2015.

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

Assistant United States Attorneys Kamal Ghali and Jeffrey W. Davis 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 – Former U.S. State Department employee Michael C. Ford has been sentenced to four years, and nine months in prison for perpetrating a widespread, international e-mail phishing, computer hacking and cyberstalking scheme against hundreds of victims in the United States and abroad.

“This case unfortunately shows that cyber-stalkers have the ability to torment victims from any corner of the globe,” said U.S. Attorney John A. Horn.  “Hopefully, Ford’s victims can be reassured that he will serve a significant sentence for his conduct.  Members of the public must be extremely careful about disclosing their logins and passwords to anyone, even when the person on the other end of an e-mail or instant message appears to be legitimate.”

“Michael Ford hacked hundreds of email accounts, particularly targeting young women so he could extort them into sending him sexually explicit images,” said Assistant Attorney General Caldwell.  “He preyed on vulnerable victims, leaving them with indelible emotional scars.  His sentence is a necessary step in holding him to account for his crimes and helping his victims move forward with their lives.”

“The sentencing of Mr. Ford will not only hold him accountable for his despicable criminal conduct but will also deny him the ability to further victimize others.  The FBI is proud of the role that it played in bringing this case forward for investigation, apprehension, and federal prosecution and it is hoped that those who were victimized by Mr. Ford will find some relief with this sentencing,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.

“The Diplomatic Security Service is proud of the hard work of everyone involved in the investigation including our partners at the FBI and the Department of Justice.  When a public servant in a position of trust commits crimes like cyberstalking and computer hacking on such a large scale, we will vigorously investigate those crimes and ensure they are brought to justice.  We hope that this sentence will provide some closure for the victims,” said Director Miller.

According to U.S. Attorney Horn, the charges and other information presented in court: Ford admitted that between January 2013 and May 2015, while employed by the U.S. Embassy in London, he used various aliases to commit a widespread, international computer hacking, cyberstalking and “sextortion” campaign designed to force victims to provide Ford with personal information as well as sexually explicit videos of others.  Ford targeted young females, some of whom were students at U.S. colleges and universities, with a particular focus on members of sororities and aspiring models.

Posing as a member of the fictitious “account deletion team” for a well-known e-mail service provider, Ford sent thousands of phishing e-mails to thousands of potential victims, warning them that their e-mail accounts would be deleted if they did not provide their passwords.  Ford admitted he then used the passwords to hack into at least 450 e-mail and social media accounts belonging to at least 200 victims, where he searched for sexually explicit photographs and for victims’ personal identifying information (PII), including their home and work addresses, school and employment information, and names and contact information of family members, among other things. 

Using both the photos and PII, Ford admitted that he then e-mailed at least 75 victims, threatening to release those photos unless they took and sent him sexually explicit videos of “sexy girls” undressing in changing rooms at pools, gyms and clothing stores.

When the victims refused to comply, threatened to go to the police or begged Ford to leave them alone, Ford escalated his threats, according to the plea agreement.  For example, Ford admitted that he wrote in one e-mail “don’t worry, it’s not like I know where you live,” followed by another e-mail with her home address and threatened to post her photographs to an “escort/hooker website” along with her phone number and home address.  On several occasions, Ford followed through with his threats, sending his victims’ sexually explicit photographs to family members and friends, according to the plea.

Additionally, at sentencing, the government presented evidence that Ford engaged in a related scheme targeting aspiring models beginning in 2009.  Posing as a model scout, Ford convinced young women to send their personal information, to include dates of birth and measurements, as well as topless photos for consideration for fictitious modeling opportunities.  During this ruse, Ford obtained topless and partially nude photos from hundreds of women, including several minors.  He also attempted to entice a minor to take voyeuristic videos of her peers in her school locker room.  Some of his early model-scout victims became the first victims of his charged cyberstalking scheme.

Michael C. Ford, 36, of Atlanta, was sentenced by U.S. District Judge Eleanor L. Ross of the Northern District of Georgia, to four years and nine months in federal prison, to be followed by three years of supervised release.  On Dec. 9, 2015, Ford pleaded guilty to nine counts of cyberstalking, seven counts of computer hacking to extort and one count of wire fraud in connection with his ongoing criminal scheme.  The names of the victims are being withheld from the public to protect their privacy. 

The Diplomatic Security Service and the FBI investigated the case. 

The case was prosecuted by Assistant U.S. Attorney Kamal Ghali of the Northern District of Georgia, Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section, and Trial Attorney Jamie Perry of the Criminal Division’s Human Rights and Special Prosecutions Section.  The Criminal Division’s Office of International Affairs and the U.S. Embassy in London provided assistance in this case. 

Anyone who believes that they are the victim of hacking, cyberstalking, or “sextortion” should contact law enforcement.  Resources regarding hacking and other cybercrimes can be found at: https://www.fbi.gov/about-us/investigate/cyber. 

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 – Attorney Bennett L. Kight was arraigned on a federal indictment today charging him with mail fraud while serving as a trustee and manager for assets, investments, and real estate owned by one of his clients.

“Kight was trusted to properly manage assets and investments belonging to an elderly client,” said U. S. Attorney John Horn.  “This indictment alleges that he instead misappropriated $2 million from her by orchestrating a sham real estate transaction involving his former personal residence.”     

According to U.S. Attorney Horn, the charges, and other information presented in court: Kight is a lawyer licensed to practice law in the State of Georgia since 1966.  Kight represented F.B. and members of her family, as well as serving as a trustee and manager for assets, investments, and real estate owned and held for the benefit of F.B. and her family.

In January 2006, Kight used his responsibility over F.B.’s assets to misappropriate approximately $2 million from accounts owned by or held for the benefit of F.B.  Kight used the money he took from F.B.’s accounts to pay off the $500,000 mortgage on his former home in Atlanta and to fund investments for his benefit. Without informing F.B., Kight obtained the money by purporting to sell F.B. his former home.  To facilitate the sale, Kight formed and used two limited liability companies that were supposed to hold title to the house for F.B.’s benefit.  However, no deed transferring Kight’s former home to F.B. or these companies was publicly recorded, and Kight later dissolved these companies. 

Kight’s son ultimately moved into the property Kight allegedly “sold” to F.B. and caused a back dated deed to the property to be prepared and publicly recorded on March 21, 2011.  The back dated deed purported to show that an entity owned and controlled by Kight had owned the house since July 2005, which was several months before Kight obtained $2 million from F.B.’s assets by allegedly selling her the property.

Kight, 75, of Atlanta, Georgia, was arraigned before United States Magistrate Judge John K. Larkins.  He was indicted by a federal grand jury on March 16, 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 FBI.

Assistant United States Attorney Douglas W. Gilfillan is prosecuting 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.

A former U.S. State Department employee was sentenced today to 57 months in prison for perpetrating a widespread, international e-mail phishing, computer hacking and cyberstalking scheme against hundreds of victims in the United States and abroad.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney John A. Horn of the Northern District of Georgia, Director Bill A. Miller of the U.S. Department of State’s Diplomatic Security Service and Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Field Office made the announcement. 

Michael C. Ford, 36, of Atlanta, was sentenced today by U.S. District Judge Eleanor L. Ross of the Northern District of Georgia.  On Dec. 9, 2015, Ford pleaded guilty to nine counts of cyberstalking, seven counts of computer hacking to extort and one count of wire fraud in connection with his ongoing criminal scheme.  The names of the victims are being withheld from the public to protect their privacy. 

According to the plea document, Ford admitted that between January 2013 and May 2015, while employed by the U.S. Embassy in London, he used various aliases to commit a widespread, international computer hacking, cyberstalking and “sextortion” campaign designed to force victims to provide Ford with personal information as well as sexually explicit videos of others.  Ford targeted young females, some of whom were students at U.S. colleges and universities, with a particular focus on members of sororities and aspiring models.

Posing as a member of the fictitious “account deletion team” for a well-known e-mail service provider, Ford sent thousands of phishing e-mails to thousands of potential victims, warning them that their e-mail accounts would be deleted if they did not provide their passwords.  Ford admitted he then used the passwords to hack into at least 450 e-mail and social media accounts belonging to at least 200 victims, where he searched for sexually explicit photographs and for victims’ personal identifying information (PII), including their home and work addresses, school and employment information, and names and contact information of family members, among other things.  Using both the photos and PII, Ford admitted that he then e-mailed at least 75 victims, threatening to release those photos unless they took and sent him sexually explicit videos of “sexy girls” undressing in changing rooms at pools, gyms and clothing stores.

When the victims refused to comply, threatened to go to the police or begged Ford to leave them alone, Ford escalated his threats, according to the plea agreement.  For example, Ford admitted that he wrote in one e-mail “don’t worry, it’s not like I know where you live,” followed by another e-mail with her home address and threatened to post her photographs to an “escort/hooker website” along with her phone number and home address.  On several occasions, Ford followed through with his threats, sending his victims’ sexually explicit photographs to family members and friends, according to the plea. 

Additionally, at sentencing, the government presented evidence that Ford engaged in a related scheme targeting aspiring models beginning in 2009.  Posing as a model scout, Ford convinced young women to send their personal information, to include dates of birth and measurements, as well as topless photos for consideration for fictitious modeling opportunities.  During this ruse, Ford obtained topless and partially nude photos from hundreds of women, including several minors.  He also attempted to entice a minor to take voyeuristic videos of her peers in her school locker room.  Some of his early model-scout victims became the first victims of his charged cyberstalking scheme.

“Michael Ford hacked hundreds of email accounts, particularly targeting young women so he could extort them into sending him sexually explicit images,” said Assistant Attorney General Caldwell.  “He preyed on vulnerable victims, leaving them with indelible emotional scars.  His sentence is a necessary step in holding him to account for his crimes and helping his victims move forward with their lives.”

“This case unfortunately shows that cyber-stalkers have the ability to torment victims from any corner of the globe,” said U.S. Attorney Horn.  “Hopefully, Ford’s victims can be reassured that he will serve a significant sentence for his conduct.  Members of the public must be extremely careful about disclosing their logins and passwords to anyone, even when the person on the other end of an e-mail or instant message appears to be legitimate.” 

“The Diplomatic Security Service is proud of the hard work of everyone involved in the investigation including our partners at the FBI and the Department of Justice,” said Director Miller.  “When a public servant in a position of trust commits crimes like cyberstalking and computer hacking on such a large scale, we will vigorously investigate those crimes and ensure they are brought to justice.  We hope that this sentence will provide some closure for the victims.”

“Today’s sentencing of Mr. Ford will not only hold him accountable for his despicable criminal conduct but will also deny him the ability to further victimize others,” said Special Agent in Charge Johnson.  “The FBI is proud of the role that it played in bringing this case forward for investigation, apprehension, and federal prosecution and it is hoped that those who were victimized by Mr. Ford will find some relief with this sentencing.”

The Diplomatic Security Service and the FBI investigated the case.  Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section, Trial Attorney Jamie Perry of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Kamal Ghali of the Northern District of Georgia prosecuted the case.  The Criminal Division’s Office of International Affairs and the U.S. Embassy in London provided assistance in this case.  

ATLANTA –Jeoffrey Jenkins and Vaughn Chambers have been sentenced for their roles in a two-year long tax refund fraud scheme that generated hundreds of false tax returns and sought over $2.8 million in fraudulent tax refunds.  Jenkins and Chambers, both bank employees, stole personally identifying information from bank customers and used that information to open bank accounts to receive the fraudulent tax refunds.

“This case is one more unfortunate example of the growing problem of stolen-identity tax return fraud,” said U.S. Attorney John Horn.  “As criminals attempt to employ more sophisticated methods, citizens need to be vigilant about protecting their personal information.”   

“These unscrupulous defendants were trusted insiders who abused their positions to commit crimes and victimize members of our community and innocent taxpayers for their own personal gain. The sentences these defendants received will not replace the losses that were incurred or the harm endured by the victims. However, it does illustrate that IRS Criminal Investigation, along with our law enforcement partners, are committed to pursuing individuals who commit these types of crimes,” stated IRS Special Agent in Charge, Veronica F. Hyman-Pillot.

“The United States Secret Service will continue to collaborate with its law enforcement partners to target and arrest individuals who violate their positions of trust to illegally enrich themselves,” said Malcolm D. Wiley, Sr., Acting Special Agent in Charge of the United States Secret Service, Atlanta Field Office. “This sentencing should serve as a reminder that criminals will bear the consequences of their actions and be sent to prison for their crimes.”

According to U.S. Attorney Horn, the charges and other information presented in Court: From at least February 2013 until at least March 2014, Jenkins and Chambers opened numerous bank accounts using stolen personally identifying information.  Those bank accounts were then listed in over 2,000 fraudulent tax returns filed with the Internal Revenue Service, with the intention that any tax refund due for the fraudulent tax returns would be deposited into the fraudulently opened bank accounts.   The scheme came to light primarily through a report from a Suntrust Bank investigator who told law enforcement that Chambers was associated with anomalous banking activity. When confronted by law enforcement, Chambers provided information that implicated Jenkins.  And from there, tax filings and bank records unraveled the defendants’ involvement in the scheme.   

In total, the bank accounts opened by the two men were set up to receive approximately $2.5 million in fraudulent tax refunds.  Out of that amount, approximately $500,000 was actually deposited into the bank accounts by the IRS.  

Jeoffrey Jenkins, 50, and Vaughn Chambers, 40, both from Atlanta, Georgia, were sentenced by U.S. District Judge Mark H. Cohen as follows: 

• Jenkins was sentenced to six years, three months in prison, and was ordered to pay $570,034 in restitution.

• Chambers, who was recruited into the scheme by Jenkins, received two years in prison, and was ordered to pay $9,464 in restitution.

Both defendants were ordered to serve three years of supervised release when they complete their prison terms.

This case was investigated by the Internal Revenue Service Criminal Investigations and United States Secret Service.

Assistant United States Attorney Samir Kaushal 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.