Northern District of Georgia

ATLANTA - Kamali Rives was sentenced to 19 years, six months in federal prison on fraud and identity theft charges.  Rives and his co-conspirators ran multiple fraud and identity theft schemes that ultimately stole over $2 million.

“Rives made his living for years by victimizing hundreds of people,” said U.S. Attorney John Horn. “He used the stolen identities to open bank accounts and write checks in other people’s names, as well as taking out loans and making purchases on phony credit cards.  He ultimately had no regard for the financial hardships he caused the people whose identities were stolen.”

Thomas Noyes II, U.S. Postal Inspector in Charge of the Charlotte Division stated, “The U.S. Postal Inspection Service will continue to go after those who use the U.S. Mail to defraud the American public.  This case demonstrates the importance of cooperation among our law enforcement partners to pursue those individuals who insist on  defrauding unwitting victims by stealing their identities and attacking their personal well-being.”

“This case illustrates the negative impact that bank fraud and identity theft have on the citizens of the United States.  The sentence imposed today should be a reminder that the Secret Service, in conjunction with our law enforcement partners, will continue to arrest criminals who violate innocent victims and threaten our financial systems,” said Malcolm D. Wiley, Sr., Acting Special Agent in Charge of the United States Secret Service, Atlanta Field Office.

According to U.S. Attorney Horn, the charges and other information presented in court:  Rives and co-defendant Rashon Bohannon, 34, of Lilburn, Georgia, ran multiple fraud and identity theft schemes for many years, dating back to at least 2010.  Rives and Bohannon maintained hundreds of files that contained “profiles” of their victims.  These profiles included names, dates of birth, Social Security numbers, bank information, credit card numbers, and credit reports.  They used this information to open bank accounts, cash checks, take out loans, manufacture credit cards, and make credit purchases. 

In one of the schemes, Rives and Bohannon conspired with Jimia Fannin, 36, and Ashley Posey, 31, both of Atlanta, Georgia, to steal corporate checks from Bank of America.  Fannin was employed by Bank of America in its lockbox unit, where her job was to process checks that had been mailed to post office box numbers assigned to Bank of America corporate clients.  As part of processing the checks, Fannin was supposed to post them as deposits to the appropriate Bank of America accounts.  Instead, Fannin stole numerous checks and gave them to Rives and Bohannon. 

Rives and Bohannon then recruited “runners,” including Posey, to open checking accounts at other banks in Georgia and deposit the checks.  The defendants opened the accounts in the names of corporations that were similar or identical to the payee corporations on the stolen corporate checks. 

Rives and Bohannon also used the information obtained from the stolen checks to access the bank accounts held by the account holders who had written the checks.  The defendants called the banks and changed the customer information, including the addresses, email addresses, and phone numbers, for the customers’ existing accounts.  After changing the account information, Rives and Bohannon withdrew money from the victims’ accounts for their own use. 

The defendants stole over $2 million in this bank fraud scheme alone.

Rives also maintained an office in College Park, Georgia, where he conducted credit card fraud.  In November 2013, officers from the College Park Police Department executed a search warrant at the office space after an individual claimed he had been held against his will there and pressured to engage in identity theft.  The officers went to location, and after smelling marijuana and seeing evidence of drug and identity theft activity, obtained a search warrant.  Inside, they found abundant evidence of identity theft, including hundreds of counterfeit credit cards, a credit-card-manufacturing machine, numerous files with credit card information (purchased from illicit Internet web sites), and other documents with personal identifiers.

At the sentencing, the government introduced evidence that Rives continued to engage in credit card fraud and identity theft even when he was placed in pretrial detention on the federal charges.  He used fraudulent credit cards to transfer money to inmates’ commissary accounts in the detention facility.  Rives then purchased commissary items and received payments from other inmates from the accounts.

Kamali Rives, 37, of Riverdale, Georgia, was sentenced by United States District Judge Thomas W. Thrash, Jr., to 19 years, six months in prison to be followed by three years of supervised release, and ordered him to pay restitution in the amount of $602,388.32.  Rives was convicted on these charges on December 16, 2015 after he pleaded guilty to a 23-count indictment charging him with conspiracy, bank fraud, access device fraud, and aggravated identity theft. 

Bohannon, Fannin, and Posey are scheduled to be sentenced on March 9, 2016 before Judge Thrash.

This case is being investigated by the United States Postal Inspection Service and United States Secret Service.  The College Park Police Department and the Hapeville Police Department provided valuable assistance in the 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 - Shedrick Giles and Tasheen Raphael Pickett, both of whom owned and operated moving companies, have been sentenced for their roles in fraudulently obtaining unsuspecting citizens’ household goods.

“The defendants took advantage of trusting citizens who sought help with moving to a new home,” said U.S. Attorney John Horn.  “Who could conceive of movers taking all of their possessions and then simply disappearing?  Others that would consider following in their footsteps and attempt such brazen thefts can expect the same outcome; prosecution.”

“The sentencing of Tasheen Raphael Pickett and Shedrick Giles for conspiring to fraudulently obtain household goods is a strong signal to those that would defraud customers seeking to transport their household goods,” said Marlies T. Gonzalez, regional Special Agent-In-Charge, U.S. Department of Transportation Office of Inspector General (DOT-OIG).  “We will continue working with our prosecutorial, law enforcement and Federal Motor Carrier Safety Administration colleagues to prevent, detect and prosecute violations of Federal law and regulation designed to protect the public.”

According to U.S. Attorney Horn, the charges and other information presented in court: since at least November 2013, Pickett and Giles have been traveling the United States, picking up shipments of innocent victims’ personal property, and promising to deliver those shipments to agreed-upon locations.  But instead of delivering the property, Pickett and Giles would take control of the property, keeping some of it for themselves and disposing of the rest.

After a criminal complaint was filed against Pickett in Amarillo, Texas, in July 2014, the DOT-OIG was notified.  In September 2014, DOT-OIG agents searched storage units at a Public Storage Facility in East Point, Georgia, and discovered that the units were stacked full with approximately 14 individuals’ personal property—property that had been taken by Pickett months before and never delivered.  Other property taken by Giles was discovered in a second Public Storage Facility in Decatur, Georgia, in January 2015.  Although both Pickett and Giles have worked as movers for several years, neither is authorized to transport household goods by the Federal Motor Carrier Safety Administration (FMCSA), the federal agency tasked with providing oversight over household goods movers.  Pickett, the primary perpetrator of the scheme, intended to cause over $600,000 in losses to 36 people.  Giles assisted Pickett in three of the moves. 

Pickett and Giles sentences are as follows:

• Shedrick Giles, 43, of Brentwood, New York, was sentenced to one year and two days in federal prison, to be followed by three years of supervised release.Giles was ordered to pay $144,007 in restitution to the victims of the crime and complete 40 hours of community service.

• Tasheen Raphael Pickett, 41, of College Park, Georgia, was sentenced on January 6, 2016, to four years in federal prison, to be followed by three years of supervised release.Pickett was ordered to pay $427,809.85 in restitution to the victims of the crime.

This case was investigated by the Department of Transportation – Office of Inspector General.

Assistant United States Attorney Samir Kaushal prosecuted the case.

More than 5,800 household goods moving companies are registered with the FMCSA.  In 2014, FMCSA received more than 2,800 consumer complaints about household goods movers, down from more than 3,100 in 2013.  Among the most common complaints are shipments being held hostage, loss and damaged goods, delay of shipments, unauthorized movers, and deceptive practices such as unwarranted overcharges.  Consumers can report unsafe and unlawful moving companies by calling FMCSA’s nationwide complaint hotline at 1-888-368-7238 (1-888 DOT-SAFT) or by visiting the database at http://nccdb.fmcsa.dot.gov.  Consumers can visit www.protectyourmove.gov to find out more about the “red flags” of moving fraud.

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 - Sholondrell Taylor has pleaded guilty to theft of government funds in a $1.6 million food stamp fraud scheme. Taylor’s stores allowed customers to exchange their food stamps for cash, buying Women, Infants, and Children (WIC) vouchers at less than face value and redeeming them at full price. 

“The defendant abused the food stamp program for her own financial gain, taking advantage of families in need and stealing over a million dollars from taxpayers,” said U.S. Attorney John Horn.  “Taylor’s elaborate scheme even included a driver to pick up food stamps and WIC vouchers from those willing to sell them for a fraction of their value.” 

“Taylor’s plea should serve as a warning to all stores that participate in the WIC and EBT programs as vendors, that fraud and trafficking (purchasing those benefits for cash) will be vigorously investigated and prosecuted by the USDA-OIG, the US Attorney’s Office, and all of its federal, state, and local partners that have a stake in ensuring that fraud is eliminated from tax payer funded programs,” said Karen Citizen-Wilcox, Special Agent-in-Charge, USDA-OIG-Investigations.

According to U.S. Attorney Horn, the charges and other information presented in court: From January 2008 through January 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 her customers to exchange their food stamp benefits for cash at the rate of 50 cents on the dollar.  Taylor also purchased Women, Infants, and Children (WIC) vouchers from benefit recipients at less than their actual value and redeemed the vouchers for full value with the U.S. Department of Agriculture. 

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 on 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 because Taylor employed a driver to retrieve WIC vouchers and food stamp cards in exchange for cash.

This case came to the attention of federal authorities as a result of a 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.

Sentencing for Sholondrell Taylor, 47, of Ellenwood, Georgia, has not yet been scheduled.

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

Assistant United States Attorney Loranzo M. Fleming 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 - Samuel Kwushue has pleaded guilty to eight counts of wire fraud for illegally exchanging food stamp benefits for cash in his convenience store.  Between late 2010 to approximately June 2015, Kwushe exchanged food stamp benefits for pennies on the dollar. 

“The federal food stamp program is intended to help low-income citizens obtain needed nutritional assistance for themselves and their families,” said U. S. Attorney John Horn.  “Instead, Kwushue abused the program by exchanging food stamp benefits for cash so he could enrich himself.”

“The federally funded food stamp program was designed with the best of intentions for those individuals truly in need.  Kwushue was not one of those truly in need.  This guilty plea in federal court will now firmly hold him accountable for his greed driven criminal acts of preying on those in need and stealing from a government program,” 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 August 2011 until at least June 2015, Kwushue owned and operated KD Metro Tropical Market, a convenience store in Atlanta, Georgia, where he unlawfully exchanged his customers’ food stamp benefits for cash at the rate of approximately 60 cents on the dollar.  Stores that participate in the food stamp program are prohibited by law from exchanging cash for food stamp benefits or accepting food stamp benefits for the purchase of alcohol, tobacco, and non-food items. 

During the investigation, law enforcement obtained data showing that KD Metro Tropical Market, a small convenience store, gradually raised its food stamp benefits transactions each month from approximately $1,100 in October 2010, to approximately $200,000 in June 2015.  During undercover transactions where Kwushue paid agents cash in exchange for food stamp benefits, agents saw a collection of foodstuffs that could not justify the substantial sums Kwushue charged to the food stamp program each month.  The scheme allegedly netted Kwushue approximately $2 million.  He also allegedly handed out nearly $3 million in cash to customers.  

Sentencing for Samuel Kwushue, 54, of Union City, Georgia, has not yet been scheduled.

This case is being investigated by the United States Department of Agriculture – Office of Inspector General and the Federal Bureau of Investigation.

Assistant United States Attorney Samir Kaushal 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 indictment unsealed today charges Nathan E. Hardwick IV and Asha R. Maurya with conspiracy, wire fraud, and related crimes in connection with Hardwick’s alleged theft of over $20 million from the attorney escrow accounts and operating accounts of Morris Hardwick Schneider and LandCastle Title, an Atlanta-based law firm and title agency in which Hardwick and Maurya once served as top executives.  In addition to charges against Maurya for assisting with Hardwick’s theft, the indictment also charges Maurya with stealing approximately $900,000 from the firm’s accounts to pay her own personal expenses.

“The indictment alleges an embezzlement scheme dating back years,” said U.S. Attorney John Horn.  “Along the way, Mr. Hardwick is alleged to have repeatedly lied to his clients, law partners, banks and others.  The allegations are especially troubling given that the actions were orchestrated by a lawyer who swore an oath to uphold the law and to represent his clients with integrity.”

“The magnitude of theft as alleged in the federal indictments of these two defendants clearly merited the resulting federal investigation and prosecution.  The allegations describe a trusted corporate officer and attorney in personal financial troubles conspiring with another corporate officer to steal from their employer, primarily through escrow accounts entrusted to their company.  Today’s federal grand jury indictments will now move those allegations into federal court,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated.

According to U.S. Attorney Horn, the indictment, and other information presented in court:  Morris Hardwick Schneider and LandCastle Title (“MHS”) was a law firm and title insurance agency headquartered in Atlanta, Georgia.  MHS employed approximately 80 lawyers and 800 non-lawyer employees in 16 states.  MHS’s law practice specialized in residential real estate closings and default and foreclosure matters.  MHS’s title insurance business involved selling title insurance policies in connection with residential real estate closings.

During periods of high activity in the real estate market, MHS performed thousands of residential real estate closings per month, and received hundreds of millions of dollars in closing funds that it was required to hold in trust in attorney escrow accounts until disbursed in accordance with its clients’ closing instructions for each transaction.  At any given time, a single MHS attorney escrow account might contain millions of dollars.  MHS also had operating accounts for purposes of funding its operations.  MHS’s accounting and escrow account operations were based out of the firm’s Atlanta headquarters.

From MHS’s formation in 2005 until Hardwick’s resignation in August 2014, Hardwick served as managing partner of the law firm and Chief Executive Officer of the title insurance agency.  Hardwick was also the majority shareholder of MHS.  Hardwick worked out of MHS’s Atlanta headquarters, supervised virtually all of MHS’s day-to-day operations, and had virtually unlimited access to, and control over, MHS’s financial affairs.

Maurya was an accounting department employee of MHS from April 2009 until her termination in November 2014.  Maurya was hired to be MHS’s Escrow Account Controller and was eventually promoted to the position of Chief Financial Officer of MHS’s closing division.  Maurya managed MHS’s attorney escrow account operations and other accounting operations under Hardwick’s supervision.

Hardwick allegedly began experiencing severe financial problems in the late 2000s, when a sharp decline in the residential real estate market made MHS less profitable, and he was subject to a July 2008 divorce decree requiring him to pay his ex-wife over $550,000 per year in alimony and other payments for five years.  Hardwick’s legitimate income could not keep pace with his lavish lifestyle, which included private jet travel; multi-million dollar homes; high-end retail goods and services; gambling at casinos in Louisiana, Mississippi, New Jersey, and Nevada; and payments to bookies and girlfriends.

The Alleged Embezzlement Conspiracy

To maintain the illusion of wealth and success despite his financial problems, and to continue to live beyond his means, in or about 2011, Hardwick allegedly began directing Maurya to make millions of dollars in shareholder distributions, bonuses, and other payments for Hardwick’s benefit, directly out of MHS’s bank accounts, in amounts that exceeded the share of MHS’s profits to which Hardwick was entitled. This occurred at times when no shareholder bonuses or distributions were scheduled to be made, and without causing or directing proportionate bonuses or distributions to be made to the other MHS shareholders.  The excess bonuses, distributions, and payments to and for Hardwick’s benefit included payments to casinos, private jet charter companies, credit card issuers, and other creditors and accounts.

To fund the vast majority of these illicit payments, Hardwick and Maurya allegedly caused millions of dollars to be wire transferred to and for Hardwick’s benefit out of MHS’s attorney escrow accounts.  Hardwick and Maurya fraudulently concealed Hardwick’s excess payments from the other MHS shareholders, MHS employees, outside auditors, title insurance underwriters, and others through false statements, half-truths, and by the omission of material facts, and by distributing false and misleading financial information and records. 

According to the indictment and based on information presented in court, when other MHS shareholders, MHS employees, and one of MHS’s title insurance underwriters began to uncover the conspiracy in July and August 2014, Hardwick and Maurya took further steps to conceal the illicit payments and to delay and obstruct the discovery of their scheme, including by making false statements about the nature, amount, and cause of the excess payments and any resulting escrow account shortages.  In particular, Maurya allegedly provided excuses and denials that attempted to attribute any problems to bank error. 

Before the other MHS shareholders and employees knew the full extent of the scheme, Hardwick also allegedly tried to conceal the amount of his illicit payments and the severity of the resulting escrow account shortages by lying to obtain and to attempt to obtain loans from various individuals and entities to repay part of the money that he had stolen. 

The indictment also charges Hardwick with lying to obtain over $3.5 million in loans from federally-insured banks in 2009, 2011, 2013, and 2014. 

Maurya’s Alleged Embezzlement

In addition to charges against Maurya for her assistance with Hardwick’s alleged theft of over $20 million, the indictment charges Maurya separately with a scheme to defraud MHS by tricking MHS into issuing checks to pay off her personal credit card bills.  Maurya is alleged to have diverted over $900,000 from MHS’s attorney escrow accounts and operating accounts to pay off her credit card bills and home mortgages.

Overview of The Charges

The indictment charges Hardwick and Maurya with one count of conspiracy to commit wire fraud and 18 counts of wire fraud.  It charges Hardwick with one count of bank fraud and three counts of making false statements to federally-insured financial institutions.  The indictment charges Maurya with 11 counts of mail fraud.  The conspiracy, wire fraud, and mail fraud charges against Hardwick and Maurya each carry a maximum sentence of 20 years in prison and a fine of up to $250,000 per count.  The bank fraud and false statements charges against Hardwick each carry a maximum sentence of 30 years in prison and a fine of up to $1 million per count.  In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.

A federal grand jury in Atlanta returned the sealed indictment against Hardwick, 50, formerly of Atlanta, and Maurya, 40, of Atlanta, on February 9, 2016.  Both defendants made their initial appearances today before U.S. Magistrate Judge Justin S. Anand.

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 each defendant’s guilt beyond a reasonable doubt at trial.

This case is being investigated by Special Agents of the FBI.  Valuable assistance has also been provided by Special Agents of the Criminal Investigation Division of the IRS.

Assistant United States Attorneys David M. Chaiken and J. Russell Phillips are 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.

ATLANTA - Veria Fields, a former employee of Bronner Bros., Inc., a hair care products company in Marietta, Georgia, has been sentenced to serve two years and four months in federal prison on charges of mail fraud relating to a theft from her former employer.

“Small businesses depend on their finance and accounting personnel to safeguard the financial health of the company,” said U.S. Attorney John Horn. “Instead, Fields violated the company’s trust by stealing millions of dollars for herself.”

“Today’s sentencing of Ms. Fields to federal prison will provide her with significant time to reflect on her ill-conceived greed driven theft scheme that diverted over three million dollars from her company to her own bank account.  The FBI will continue to dedicate its investigative resources toward those individuals engaged in such unbridled and damaging white collar based criminal schemes as seen here,” 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:  Fields was the Accounts Receivable Manager for Bronner Bros. Inc., a wholesaler of African-American hair care products headquartered in Marietta, Georgia.  Fields also informally performed customer service functions for the company. 

From 2006 through 2010, Fields embezzled over $3.3 million from Bronner Bros. by offering customers unauthorized discounts of five to15 percent in exchange for customers making account payments to her in cash.  Rather than applying the discounted payments to the customers’ accounts as the customers expected, Fields instead pocketed the cash for herself.  To conceal the unauthorized discounts and the thefts, Fields used her position as the company’s Accounts Receivable Manager to allocate portions of the payments from other Bronner Bros. customers to cover the shortfalls she created.  She also wrote off portions of the bills owed by the customers. 

Veria Fields, 54, of Atlanta, Georgia, has been sentenced to two years, four months in federal prison, to be followed by three years of supervised release, and to pay restitution of $3,330,828.02.  Fields was convicted of these charges on November 20, 2015, after she pleaded guilty.

This case was investigated by the Federal Bureau of Investigation.

Assistant United States Attorney Bernita B. Malloy 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 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 - Tessema Lulseged has been sentenced to serve four years and three months in federal prison for using his Decatur, Georgia, convenience store to illegally traffic in food stamps.  Lulseged allowed his customers to exchange their food stamp benefits for cash in a scheme that netted him $6.5 million.

“The purpose of the food stamp program is to offer low-income citizens nutritional assistance, and this defendant undermined the program solely for his own profit and cost taxpayers more than $6.5 million,” said U.S. Attorney John Horn.

The United States Department of Agriculture, Office of Inspector General- Investigations, actively investigates allegations of fraud in the Supplemental Nutritional Assistance Program (SNAP).  Annually, this type of fraudulent activity undermines this program by misdirecting millions of dollars of taxpayer funds from the purposes they were intended.  We would like to thank U.S Attorney's Office for aggressively prosecuting perpetrators of fraud and sending a strong message that illegally profiting by defrauding USDA programs will not be tolerated,” said Karen Citizen-Wilcox, Special Agent-in-Charge for USDA’s Office of Inspector General. 

“This case represents an individual systematically exploiting those in need and diverting U.S. funds intended for the needy to his own bank account.  The FBI is pleased with its role in bringing this case forward for prosecution which resulted in today’s federal prison sentence for Mr. Lulseged,” 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 January 2009 through April 2014, Lulseged operated Tess Market, Inc.,  d/b/a Big T Supermarket, a convenience store in Decatur, Georgia, where he unlawfully allowed his customers to exchange their food stamp benefits for cash at the rate of 60 cents on the dollar. As part of the deal, Lulseged required customers to purchase eligible food products equal to 10% of the value of the transaction. For example, if a customer wanted to sell $100 worth of food stamp benefits for $60, that customer also had to purchase $10 worth of eligible food products from Lulseged’s store. The fraudulent scheme netted Lulseged approximately $6.5 million.

Pursuant to search and seizure warrants that were executed in February 2014, the government seized and forfeited over $700,000 in funds tainted by the fraud. The government also forfeited two pieces of real property: the defendant’s personal residence in Gray, Georgia, and his store property in Decatur, Georgia, on the grounds that they were proceeds of the fraud and properties involved in money laundering transactions.

Tessema Lulseged, 49, of Decatur, Georgia, was sentenced to four years, three months in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $5,930,450.16.  Lulseged was convicted on these charges on July 7, 2015, after he pleaded guilty.

This case was investigated by the U.S. Department of Agriculture, Office of Inspector General, Investigations Division, and the Federal Bureau of Investigation.

Assistant U.S. Attorneys J. Russell Phillips, Dahil D. Goss, and Jenny R. Turner prosecuted the case.

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

ATLANTA – The co-owners, chief operating officer, and an alleged paid promoter of Sterling Currency Group, which at one time billed itself as one of the largest sellers and exchangers of the Iraqi dinar in the U.S., have been indicted for their roles in a scheme to fraudulently induce investors into purchasing the Iraqi dinar.  Tyson Rhame, James Shaw, Terrence Keller, and Frank Bell, have been indicted in this case and had their initial appearances before U.S. Magistrate Judge Alan J. Baverman. 

“Investors in the Iraqi dinar, like all investors, are entitled to make an informed choice based on honest and transparent information,” said U. S. Attorney John Horn. “These defendants are alleged to have defrauded investors by spreading misinformation about the investment potential of the Iraqi dinar in order to profit from sale of the currency.  We urge anyone who believes they were impacted by this scheme to contact the FBI.”

“This federal indictment represents extensive efforts by the government to protect investors from those who would make alleged unsubstantiated claims involving the potential revaluation of certain foreign currency.  The FBI, along with the IRS Criminal Investigative Division, has made every effort to provide some protection for those who have already invested by seizing millions of dollars, the disposition of which will be further determined as this case now moves into the U.S. Courts system,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.

“Investment fraud schemes are designed to appeal to people's hope, often resulting in the total loss of their investment,” stated Special Agent in Charge Veronica F. Hyman-Pillot, IRS Criminal Investigation. “Individuals who line their pockets with money gained through deceiving others should know they will not go undetected and will be held accountable. The indictment of these individuals illustrates our commitment, along with our law enforcement partners, to pursue those individuals who victimize investors, violate the public trust and enrich themselves financially at the expense of the investor.”

According to U.S Attorney Horn, the indictment, and other information presented in court:  During the scope of the conspiracy, the Iraqi dinar – which is the currency of the country of Iraq - was touted by some as a potential investment opportunity. Information publicly available on certain internet websites, blogs, chat rooms, and conference calls fueled this speculation by predicting that a “revaluation” of the Iraqi dinar would occur imminently.  A “revaluation” or “RV,” in this context, meant a sudden, exponential rise in the value of the Iraqi dinar as compared to the U.S. dollar and other relatively stable global currencies. Individuals who owned Iraqi dinar would realize potentially enormous gains if an “RV” ever occurred in this manner. 

Sterling Currency Group, LLC, which also did business as Sterling Online Processing Services, LLC, and Dinar Banker (collectively, “Sterling”), was a Georgia corporation with its principal place of business in Atlanta, Georgia. Sterling sold and exchanged so-called “exotic currencies,” including most predominantly the Iraqi dinar.Tyson Rhame and James Shaw were co-owners of Sterling, which began operations in 2004. Frank Bell began working for Sterling in 2010 and became Sterling’s Chief Operating Officer in 2011.

According to the indictment, Terrence Keller, who was also known as “TerryK,” led an internet-based group known as “The GET Team,” which consisted of a website, an internet chat forum and weekly conference calls in which, among other things, information was disseminated to participants concerning the potential investment value of the Iraqi dinar.Keller, through The GET Team, was one of the leading internet-based proponents of the “RV” theory.  On The GET Team’s website, internet chat forum, and on weekly conference calls, Keller is alleged to have falsely claimed to have information from, and verified by, high-level confidential sources in the United States government, the Iraqi government, international organizations, and major financial institutions, regarding an imminent “RV.” However, Keller did not have information from, or contact with, these supposed high-level confidential sources. The indictment alleges that Keller, Rhame, Shaw, and Bell knew and believed that representations concerning an imminent “RV” of the Iraqi dinar, particularly claims that the information came from one or more supposed high-level confidential sources, would boost sales for Sterling. 

Keller allegedly claimed, directly and indirectly, to The GET Team followers that he had no financial or other ulterior motive to promote the Iraqi dinar as an investment, but, rather, that he was simply disseminating his knowledge and information so that others could benefit from it as well. To that end, Keller affirmatively told his followers that he did not make substantial profits from his dealings with Sterling and other dinar dealers that advertised with the GET Team.Keller allegedly had a secret arrangement with Rhame, Shaw and Bell to promote and “pump” the Iraqi dinar in exchange for payments made by Sterling to benefit Keller.  Since at least as early as August 2011, Sterling paid Keller over $160,000.  Keller consistently downplayed these financial benefits to his followers and listeners.  

The correlation between Sterling’s increased sales and Keller’s promotion of the Iraqi dinar was allegedly further cemented by the presence of a Sterling representative, including, at times, Rhame and Bell, on The GET Team’s conference calls and internet forums. At various times, Rhame, Bell and other Sterling representatives participated in conference calls and internet forums in which Keller made representations to followers concerning the imminent Iraqi dinar “RV,” his access to high-level confidential sources, and claims that he was just trying to be helpful and received no financial benefit for providing this information to others.  The presence and participation of Rhame, Bell, and other Sterling representatives on The GET Team’s conference calls and internet forums provided further validation to followers that Keller’s claims about an imminent “RV” of the Iraqi dinar should be believed.

The indictment alleges that the promotional activities of Keller and other dinar promoters were essential to Sterling’s financial success and generated Sterling millions of dollars in dinar and other currency sales. In December 2010, Rhame is alleged to have told colleagues that Keller and the GET Team pushed 80% of Sterling’s business.  In December 2011, Bell is alleged to have referred to the GET Team as Sterling’s “largest referrer.”  Between approximately 2010 and June 2015, Sterling grossed over $600 million in revenue from the sale of the Iraqi dinar and other currencies.  During this same time period, Rhame and Shaw received over $180 million in distributions from Sterling.

Tyson Rhame, 51, and James Shaw, 53, both of Atlanta, Georgia, Frank Bell, 54, of Decatur, Georgia, and Terrence Keller, also known as “TerryK,” 55, of Grayson, Kentucky, are each charged with conspiracy to commit mail and wire fraud as well as several counts of mail fraud and wire fraud.  Rhame and Shaw are also charged with conspiracy to commit money laundering and 12 counts of money laundering.    

The indictment also includes criminal forfeiture listing numerous assets to which the defendants may have an interest.  Specifically, the government is seeking the forfeiture of millions of dollars held in financial accounts, foreign currencies, three private airplanes, three automobiles, numerous corporate and trust entities, as well as real property in Georgia, Florida, North Carolina, and Iowa.  Also, the government filed motions to amend two civil forfeiture complaints, which similarly seek the forfeiture of a variety of assets allegedly linked to this scheme.  The government’s motions and amended civil forfeiture complaints can be found at United States v. 225 Valley Road, NW, Atlanta, GA et. al., 1:15-CV-2032-LMM (Doc. 217) and United States v. Approximately 8,671,456,050 in Iraqi Dinars, et. al., 1:15-CV-2677-LMM (Doc. 212).

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 Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation.

Assistant United States Attorneys Thomas J. Krepp, Steven D. Grimberg, and Jamie L. Mickelson are prosecuting the case.  Assistant United States Attorneys Kelly K. Connors, Dahil D. Goss, and Thomas J. Krepp are handling the parallel civil forfeiture actions. 

Members of the public who believe they were impacted by this scheme are encouraged to contact the FBI at https://forms.fbi.gov/iraqi-dinar-investment-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 U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

            Eighteen defendants have been sentenced in a large, stolen U.S. Treasury check and identity theft ring. The defendants ran an elaborate scheme that obtained stolen checks, manufactured fake Georgia driver’s licenses to use in cashing the stolen checks, and opened credit card accounts in the names of unsuspecting victims. 

            “Fraud and identity theft crimes are a growing problem in our community,” said U.S. Attorney John Horn. “These crimes have long-lasting effects on the victims, destroy credit ratings and deprive victims of benefit checks they often desperately need.  For many, it can take years to undo the damage caused by these schemes.”

            “The federal prison sentences handed down to this aggressive and organized theft ring are the direct result of the efforts of a large group of committed and dedicated investigators and prosecutors that clearly saw the level of victimization to individuals, corporations, and even the U.S. government.  The FBI is proud of the role that it played in bringing this case forward for the successful prosecution that now holds these individuals fully accountable for their criminal actions,” 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 June 2012 until September 2014, the defendants worked together to obtain and cash U.S. Treasury checks stolen from the U.S. Mail. The checks were originally issued to people entitled to the federal funds, including taxpayers receiving refunds, retired federal employees receiving pension benefits, military families, and Social Security beneficiaries receiving Social Security and disability payments.

            The defendants played different roles in the scheme: Defendants Erica Willis, Dexter Willis, Sayeed Valdez and Antonio Slatton sold stolen checks to other defendants.  Check purchasers, including Hussain Abdullah, Asad Abdullah, Hudhayfah Abdullah and Hafid Abdur-Rabbani, were frequent customers of the check sellers and purchased checks by either paying 25% of the check’s face value or splitting the proceeds from the check with the supplier. After purchasing the stolen checks, the defendants would pay identification manufacturers like Ibrahim Abdur-Rabbani and Khalil Majeed to make fake Georgia driver’s licenses matching the names and addresses of the victims, but containing photos of “check runners.” In exchange for a fee, the “check runners” would use the fake driver’s licenses to cash the stolen checks at retail locations throughout the Atlanta metropolitan area, such as Wal-Mart and Publix.

           As part of the investigation, FBI and other law enforcement agents worked with a confidential informant, which put them in a position to recover the stolen checks and false identifications.  During the investigation, the government reimbursed the stores that agreed to help in the investigation by cashing the stolen checks, thus aiding law enforcement in identifying the members of the scheme.

           In a separate credit card fraud scheme, defendants Asad Abdullah, Mikal Majeed, Sayeed Valdez and Billie Cosby, obtained and used counterfeit identification documents to pose as real Sam’s Club members. After presenting the fraudulent documents at various Sam’s Club locations in Georgia, Tennessee, and Alabama, the defendants obtained replacement store credit cards in the names of the victims, which the defendants then used to buy gift cards, gas, groceries, and other items at various Sam’s Club and Wal-Mart locations.

            In total, the defendants defrauded the federal government, Wal‑Mart, and Sam’s Club of close to $1,000,000.

            The defendants were indicted by a federal grand jury on September 11, 2014.  All were convicted by either guilty plea or trial, and all but one has been sentenced.  The defendants, and their charges and sentences are as follows:

 

• Asad Abdullah, 37, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, aggravated identity theft and conspiracy to commit credit card fraud.  He pleaded guilty and was sentenced to seven years, eight months in months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $72,182.12  

 

• Erica Willis, 36, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft.  She was convicted at trial and was sentenced to three years in months in prison to be followed by three years of supervised release. 

   

• Hussain Abdullah, 34, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft. He pleaded guilty and was sentenced to four years, eight months, followed by three years supervised release and 100 hours of community service. 

   

• Hudhayfah Abdullah, 32, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft.  He pleaded guilty and was sentenced to three years, six months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $7,325.00. 

   

• Hafid Abdur-Rabbani, 37, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft.  He pleaded guilty and was sentenced to four years in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $2,684.30. 

   

• Ibrahim Abdur-Rabbani, 33, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft. He pleaded guilty and was sentenced to three years, seven months in prison to be followed by three years of supervised release.

 

• Khalil Majeed, 35, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft.  He pleaded guilty and was sentenced to four years, ten months in prison to be followed by three years of supervised release.

   

• Ali Al-Amin, 36, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft after pleading guilty.  He was sentenced to three years, seven months in prison to be followed by three years of supervised release.

 

• Zakariyah Abdullah, 35, of Atlanta, Georgia, was convicted of aggravated identity theft and using a passport belonging to another after pleading guilty.  He was sentenced to three years, two months in prison to be followed by three years of supervised release.

 

• Sayeed Valdez, 38, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds after he pleaded guilty.  He was sentenced to two years, nine months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $55,623.17. 

 

• Antonio Slaton, 37, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds after pleading guilty.  He was sentenced to one year in prison to be followed by three years of supervised release.

   

• Cory Howell, 43, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds after pleading guilty.  He was sentenced to three months in prison to be followed by three years of supervised release.

   

• Damion Davis, 31, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds after entering a guilty plea.  His sentencing is scheduled for April 8, 2016.

   

• Dexter Willis, 36, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds after pleading guilty.  He was sentenced to five years in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $118,199.16

   

• JoAnn Drigo, 37, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds after pleading guilty.  She was sentenced to three years’ probation.

   

• Muhajid Ahmad, 33, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds after pleading guilty.  He was sentenced to three years of probation.

 

• Billee Cosby, 34, of Atlanta, Georgia, was convicted of conspiracy to commit credit card fraud after pleading guilty.  She was sentenced to four months of a combination of community and home confinement, three years of probation and ordered to pay restitution in the amount of $5,635.47.

 

• Mikal Majeed, 33, of Atlanta, Georgia, was convicted of aggravated identity theft after pleading guilty.  He was sentenced to three years in prison to be followed by one year of supervised release, and ordered to pay restitution in the amount of $50,929.34.

 

• Jasmine Proctor, 20, of Atlanta, Georgia, was convicted of interfering with the U.S. Mail after pleading guilty.  She was sentenced to 18 months of probation.

            This case was investigated by the Federal Bureau of Investigation. Investigative assistance in this case was provided by the following federal agencies: Federal Air Marshal Service; United States Customs and Border Protection; Bureau of Alcohol, Tobacco, Firearms, and Explosives; IRS-Criminal Investigations; United States Secret Service; United States Postal Service; and the Department of Homeland Security. The following state and local agencies also assisted: Georgia Bureau of Investigation; Georgia Office of Consumer Protection; Georgia Department of Corrections; Atlanta Police Department; Woodstock Police Department; Fulton County Sheriff’s Office; Henry County Police Department; Gwinnett County Police Department; Dunwoody Police Department; Brookhaven Police Department; Sandy Springs Police Department; DeKalb County Police Department, and Chamblee Police Department.

            Assistant U.S. Attorneys Nekia Hackworth and Kim S. Dammers, along with DOJ Trial Attorney Hans Miller 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 - John Letcher Edens has been sentenced to one year in federal prison for impersonating a United States Marshal.

“Edens misrepresented that he was a U.S. Marshal to gain sensitive personal information to use in his skip tracing business,” said U.S. Attorney John Horn.  “He abused the trust that is placed in law enforcement to make exigent requests for phone location data.  Instead of using the data to rescue kidnapped children, he used it to repossess cars.”

“When someone fraudulently represents themselves as a deputy U.S. Marshal – or any law enforcement officer – the consequences can be serious. Eden was able to gain access to non-public information, which allowed him to harass one victim. His crimes had the potential to damage the trust that the U.S. Marshals Service has worked long and hard to establish with the public, private companies and fellow law enforcement agencies”, said U.S. Marshal Beverly Harvard.

According to U.S. Attorney John Horn, the charges and other information presented in court: In October and November, 2014, Edens falsely claimed to be a Deputy U.S. Marshal and submitted exigent request forms to a cellular phone provider in order to obtain location information about private citizens. Edens then used that private location information for his business as a skip tracer, in which he located individuals for the purpose of repossessing their vehicles.  Precise location information is provided by cellular phone companies to law enforcement with a search warrant, or when exigent circumstances require the disclosure of such information before a search warrant may be obtained.  

When submitting the exigent request forms, Edens fraudulently represented that children had been kidnapped and were in immediate danger in order to trick the cellular provider into providing private citizens’ location information without a search warrant.  In one instance, Edens even harassed a victim. 

On May 6, 2015, a grand jury charged Edens, 56, of Sandy Springs, Georgia, with seven counts of false impersonation of a U.S. Officer.  Edens pleaded guilty to six of the seven counts on September 24, 2015.  On February 10, 2016, U.S. District Judge Eleanor L. Ross Sentenced Edens to one year and one day, and ordered him to serve three years of supervised release and pay a special assessment of $600.

This case was investigated by the United States Marshals Service.

Assistant United States Attorney Jolee Porter prosecuted the case.

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

ATLANTA – More than 45 current and former Georgia Department of Corrections officers and contract correctional officers have been charged in seven separate federal indictments with smuggling contraband into prisons and with accepting bribe payments in exchange for providing protection for drug deals that were part of a federal undercover operation.  

“It’s troubling that so many officers from state correctional institutions across Georgia were willing to sell their badges for personal payoffs from purported drug dealers,” said U. S. Attorney John Horn.  “They not only betrayed the institutions they were sworn to protect, but they also betrayed the ideals that thousands of honest, hard-working correctional officers uphold every day.”

“While the vast majority of those working within Georgia’s correctional facilities are dedicated and loyal officers and employees, today’s FBI led an operation focused on the apprehension of those who strayed.  These arrests represent an extensive FBI Atlanta and Georgia Department of Corrections’ investigation which initially focused on inmate criminal activities but also revealed a significant public corruption problem within eleven of the 35 Georgia Department of Corrections facilities,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.

“We truly appreciate the swift response to our request for assistance from our partners at the FBI,” said GDOC Commissioner Homer Bryson. “We stand committed in our continuing efforts to bring to justice to those who pose a threat to the safety of the public and to the operations of our facilities. Shedding light on individuals involved in this type of corruption will remain our focus, and we will seek prosecution to the fullest extent of the law.”

According to U.S. Attorney Horn, the indictments, and other information presented in court: The Georgia Department of Corrections (“GA DOC”) is the agency responsible for overseeing the operations of the Georgia state prison system and its more than 50,000 inmates. During a federal investigation of GA DOC employees and inmates, the Federal Bureau of Investigation uncovered that correctional officers were smuggling contraband (liquor, tobacco, cell phones) into state prisons.  Many of those contraband cell phones were then used by inmates to commit wire fraud, money laundering, identity theft and drug trafficking.  

The operation also revealed that numerous GA DOC officers were willing to use their law enforcement credentials to protect what they believed were drug deals involving multiple kilograms of methamphetamine and cocaine.  In a series of undercover operations, more than 45 correctional officers used their law enforcement status to protect drug deals in exchange for thousands of dollars in cash bribe payments.  During the undercover deals, the correctional officers generally wore their GA DOC uniforms or had their GA DOC badges in an effort to avoid law enforcement scrutiny.

In connection with this most recent phase of the operation, a federal grand jury has returned multiple indictments charging the following individuals:

1. Ashley Jenee Barnes, 21, of Sparta, Georgia, a Correctional Officer at Riverbend Correctional Facility, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
2. Selena Black, 22, of Oglethorpe, Georgia, a Correctional Officer at Macon State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
3. Michael Bostic, 32, of Lawrenceville, Georgia, formerly a Correctional Officer at Phillips State Prison, has been charged with accepting bribe payments to smuggle contraband into a prison, with accepting bribe payments to protect drug transactions, and with attempted drug trafficking.
4. William Dale Bragg, 25, of Warner Robins, Georgia, a GA DOC inmate, has been charged with conspiring to commit money laundering.
5. Crystal Sasha Brooks, 22, of Tennille, Georgia, formerly a Correctional Officer at Hancock State Prison, has been charged with accepting bribe payments to smuggle contraband into a prison, with accepting bribe payments to protect drug transactions, and with attempted drug trafficking.
6. Jessica Brown, 30, of Milledgeville, Georgia, a Correctional Officer at Baldwin State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
7. Christopher Clayton, 28, of Americus, Georgia, formerly a Correctional Officer at Macon State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
8. Chasity Coleman, 22, of Cordele, Georgia, formerly a Correctional Officer at Dooly State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
9. Patrick Coleman, 43, of Tucker, Georgia, formerly a Correctional Officer at Phillips State Prison, has been charged with accepting bribe payments to smuggle contraband into a prison, with accepting bribe payments to protect drug transactions, and with attempted drug trafficking.
10. Angela Dinkins, 25, of Morrow, Georgia, formerly a Correctional Officer at Dooly State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
11. Quardarrius Duhart, 29, of Tennille, Georgia, has been charged with attempted drug trafficking.
12. Travonne Ferrell, 22, of Milledgeville, Georgia, a Correctional Officer on the GA DOC tactical unit or COBRA Squad, has been charged with accepting bribe payments to protect drug transactions and with drug trafficking.
13. Benjamin Floyd, 23, of Hawkinsville, Georgia, formerly a Correctional Officer at Dooly State Prison and a jailor at Pulaski County Sheriff’s Office, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
14. Dantavis Fluellen, 26, of Milledgeville, Georgia, a Correctional Officer on the COBRA Squad, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
15. Jeremy Fluellen, 26, of Sparta, Georgia, formerly a Correctional Officer at Hancock State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
16. Tacowan Fluellen, 24, of Milledgeville, Georgia, a Correctional Officer on the COBRA Squad, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
17. Justin Gennings, 29, of Port Royal, South Carolina, formerly a Correctional Officer at Phillips State Prison, has been charged with accepting bribe payments to smuggle contraband into a prison.
18. Charisma Glenn, 22, of Milledgeville, Georgia, a Correctional Officer at Riverbend Correctional Facility, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
19. Jaleel Green, 23, of Oglethorpe, Georgia, a Correctional Officer at Dooly State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
20. Kenny Grover, 28, of Fort Valley, Georgia, formerly a Correctional Officer at Macon State Prison prior to his arrest, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
21. Kierria Harvey, 23, of Milledgeville, Georgia, a Correctional Officer at Riverbend Correctional Facility, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
22. Cortavius Henderson, 23, of Cordele, Georgia, formerly a Correctional Officer at Dooly State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
23. Pierre Hill, 33, of Warrenton, Georgia, formerly a Correctional Officer at Hancock State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
24. Joshua Johnson, 20, of Kingsland, Georgia, formerly a Correctional Officer at Macon State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
25. Marvin Johnson, 33, of Rochelle, Georgia, has been charged with attempted possession with intent to distribute a controlled substance.
26. Tamika Johnson, 34, of Forsyth, Georgia, a Correctional Officer on the COBRA Squad, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
27. Winfred Johnson, 25, of Sandersville, Georgia, formerly a Correctional Officer at Riverbend Correctional Facility, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
28. Ethan Kilgore, 24, of Dublin, Georgia, a Correctional Officer at Dodge State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
29. Kewanda Love, 26, of Cochran, Georgia, formerly a Correctional Officer at Pulaski State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
30. Chelsey Mayweather, 24, of Milledgeville, Georgia, formerly a Correctional Officer at Baldwin State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
31. Tiawanna McDonald, 24, of Centerville, Georgia, a Correctional Officer at Dooly State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
32. Jarratt Ken Melvin, 23, of Thomaston, Georgia, formerly a Correctional Officer at Pulaski State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
33. Phoenicia Minor, 30, of Bonaire, Georgia, a Correctional Officer at Pulaski State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
34. Shameka Mobley, 27, of Warner Robins, Georgia, a Correctional Officer at Pulaski State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
35. Brandon Mullino, 34, of Hawkinsville, Georgia, a Correctional Officer at Dooly State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
36. Trevon Newsome, 22, of Warner Robins, Georgia, a Correctional Officer at Macon State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
37. Angelique Pate, 25, of Montezuma, Georgia, formerly a Correctional Officer at Macon State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
38. Ebony Scott, 26, of Tennille, Georgia, a Correctional Officer at Riverbend Correctional Facility, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
39. Anthony Shoffner, 23, of Kathleen, Georgia, a Correctional Officer at Macon State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
40. Sarne Sylvester, 28, of Albany, Georgia, formerly a Correctional Officer at Autry State Prison, has been charged with accepting bribe payments to smuggle contraband into a prison.
41. Tavia Trammer, 34, of Lawrenceville, Georgia, formerly a Correctional Officer at Phillips State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
42. Tramaine Tucker, 27, of Milledgeville, Georgia, formerly a Correctional Officer at Riverbend Correctional Facility, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
43. Brandon Watkins, 24, of Warner Robins, Georgia, formerly a Correctional Officer at Dooly State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
44. James Julius Watkins, Jr., 26, of Sparta, Georgia, formerly a Correctional Officer at Hancock State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
45. Alice Whitfield, 24, of Unadilla, Georgia, a Correctional Officer at Dooly State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
46. Branden Wiley, 24, of Cordele, Georgia, a Correctional Officer at Dooly State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
47. Christopher Tate Williams, 25, of Sparta, Georgia, formerly a Correctional Officer at Hancock State Prison, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
48. Tonia Williams, 25, of Warner Robins, Georgia, a Correctional Officer on the COBRA Squad, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.
49. Keyerra Winkfield, 24, of Milledgeville, Georgia, formerly a Correctional Officer at Riverbend Correctional Facility, has been charged with accepting bribe payments to protect drug transactions and with attempted drug trafficking.

Previously, numerous others have been charged as part of the overall investigation of the GA DOC.  In particular:

• On January 21, 2016, more than 50 Georgia Department of Corrections employees, inmates, and non-incarcerated co-conspirators were charged federally with conspiring to commit wire fraud, conspiring to commit money laundering, and accepting bribes to smuggle contraband into prisons. Many of the alleged criminal activities were committed inside Georgia state prisons.

• On January 13, 2016, three GA DOC inmates and 14 others were charged federally with participating in a wide-ranging drug trafficking conspiracy that operated within several state prisons.Using contraband cellular telephones inside of prison, and employing a network of brokers, distributers, and runners outside of prison, GDOC inmates controlled and managed the distribution of illegal narcotics throughout the Atlanta-metropolitan area and the southeast region of the United States.

• On September 24, 2015, 12 prison employees, inmates, and others were charged federally in a wide-ranging conspiracy that involved drug trafficking, identity theft, and credit card fraud. Many of the alleged criminal activities were committed inside Georgia state prisons.

In total, this extensive operation has resulted in charges against approximately 130 prison employees, inmates, and non-incarcerated co-conspirators. 

Members of the public are reminded that the indictments 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.

These cases are being investigated by the Federal Bureau of Investigation, the Georgia Bureau of Investigation, and the Georgia Department of Corrections Office of Professional Standards.

First Assistant United States Attorney Kurt R. Erskine and Assistant United States Attorneys Brent A. Gray, John S. Ghose, Trevor Wilmot, Brian Pearce, Jennifer Whitfield, and Jeffrey W. Davis are prosecuting the cases.

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 - Michael C. Sibley has been sentenced to two years in prison for creating a hoax when he left a backpack containing two inoperable pipe bombs in Vickery Creek Park in Roswell, Georgia.

“Sibley built two nearly-operable pipe bombs that he recklessly left in Vickery Creek Park in a place intended to inflict maximum panic among the public,” said U. S. Attorney John Horn.  “He compounded the crime by preying on stereotypical fears and prejudices by making it appear the bombs were planted by a Muslim.  Thankfully an alert park visitor discovered and immediately reported the bag containing the bombs to police.” 

“The sentencing of Mr. Sibley to two years in federal prison should clearly illustrate to him and to others the serious nature of leaving a backpack device in a public setting for the specific purpose of creating panic and distress.  The law enforcement response and the resulting federal investigation was extensive and costly to the taxpaying public,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.

According to U.S. Attorney Horn, the charges and other information presented in court: Sibley placed a backpack alongside one of the trails in Vickery Creek Park.  Roswell Police Department contacted FBI after a park visitor discovered the suspicious bag, which contained two pipe bombs that fortunately omitted one component and therefore were not capable of immediate detonation.  Approximately 400 nails and screws were attached to the outside of the tubing consistent with construction designed for maximum fragmentation upon explosion, making the device more lethal.          

On the bag containing the bombs, Sibley wrote a traditionally Muslim name on the backpack and he placed inside the bag, among other things, two books: one titled “The Rape of Kuwait” and the other titled “The Holy Qur’an.”  He also placed papers printed from three websites in the bag: the 2015 Atlanta Falcons schedule, a printout from a website for a Jewish Community Center in the Atlanta area, and a printout from the Metropolitan Atlanta Rapid Transit Authority’s (“MARTA”) website.  These printouts were included to convey threats to these locations as well.

Based on the items recovered from the backpack, the FBI narrowed its focus to Sibley.  On March 20, 2015, Sibley voluntarily met with the FBI and confessed to making the devices and to placing them in Vickery Creek Park. He stated that he placed the bag with these devices, the books and other items in the park to “wake-up” people in the United States.  He related that he believes the Mexican border is poorly defended and that many people are entering this country illegally.  He also said that he made the explosive devices and placed them in the park to make people realize that if this can happen in Roswell, Georgia, it can happen anywhere.   

Michael C. Sibley, 67, of Marietta, Georgia, was sentenced to two years in prison to be followed by one year of supervised release.  Sibley was convicted on these charges on September 9, 2015, after pleading guilty.

This case was investigated by the Federal Bureau of Investigation.

Assistant United States Attorney Tracia M.King 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 - Travis Sentall  Robinson, a/k/a “Triggaplay,” a/k/a “Trigga,” of Lawrenceville, Georgia, was convicted last week following a three-week jury trial of multiple sex-trafficking charges, including conspiracy to commit and commission of sex trafficking of a minor and sex trafficking by force, fraud or coercion.

“Calling himself the ‘King of Diamonds,’ Robinson attempted to build a sex trafficking empire by exploiting vulnerable young women and a minor,” said U.S. Attorney John Horn.  “Thanks to the courage of his victims and the diligence of the law enforcement officers whose efforts led to his arrest, Robinson is now officially out of business.”  

“The FBI is pleased with the role that it played in getting Mr. Robinson and his co-defendant Ladrigus Stuckey off of our streets.  Robinson, in particular, displayed a complete disregard for those who he exploited within sex trafficking industry. The conviction of Robinson and the earlier guilty plea of Stuckey should resonate among those other individuals out there who might consider this reprehensible criminal conduct acceptable.  The FBI and its law enforcement partners have made human trafficking a priority matter,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.

“The jury saw Robinson for what he truly is - a predator,” stated Lt. Christopher Rafanelli, Gwinnett County Police Department.  “The verdict is the result of countless hours of hard work and cooperation by the Gwinnett Vice Unit and the FBI.  My hope is that this outcome will serve as a warning to anyone that is considering sexually exploiting victims in Georgia.”

According to U.S. Attorney Horn, the charges, and evidence presented during the trial:  From the summer of 2013 until his arrest at a hotel in downtown Atlanta on May 14, 2014, Robinson, the self-proclaimed “King of Diamonds,” ran a commercial sex operation he referred to as the “Queen of Diamonds.”   Robinson used fraud to recruit female victims between the ages of 17 and 22, promising to hire the victims as models and party promoters for his business.  Five of the victims testified at trial that Robinson lured them into prostitution by claiming that he was connected to Atlanta’s music scene and to a Grammy-nominated musician and producer.  Robinson bought plane or bus tickets for the victims to travel to Atlanta and then, upon their arrival, invited the victims to live at his large Lawrenceville home.  He took them shopping, to a recording studio, and to nightclubs. 

After Robinson’s victims were indebted to and trusted him, he posted the victims’ names in “escort” sections of online classified websites. Robinson then forced the victims to commit commercial sex acts with customers who responded to the ads. Robinson’s scheme used force, threats of force, and psychological coercion to force his victims to engage in prostitution and involved regular beatings of the victims, causing them to suffer black eyes and other injuries. Several victims testified that Robinson frequently assaulted other victims in their presence, further increasing the victims’ fear of disobeying or attempting to escape from him. He required the victims to work seven days a week, plying them with a drug, “Molly,” so that they could work without sleep.  He installed a program on their cell phones that enabled him to read their text messages and monitor their locations. And he kept the victims’ earnings, requiring them to ask permission to use money for food and personal hygiene items.  

The evidence at trial established that Robinson caused the victims to travel to at least nine states for the purpose of committing commercial sex acts, including Alabama, Florida, South Carolina, North Carolina, Louisiana, Indiana, Illinois, Mississippi and New York.  Robinson also used hotels throughout the metro-Atlanta area for his sex-trafficking operation.  He spent at least $31,000 on hotel rooms for this purpose between September 2013 and April 2014.

The jury convicted Robinson of 10 counts. He faces a mandatory minimum sentence of 15 years of imprisonment and up to a statutory maximum sentence of life imprisonment for six counts of sex trafficking by force, fraud or coercion.  He faces a mandatory minimum sentence of 10 years of imprisonment and up to a maximum sentence of life imprisonment for a single count of sex trafficking of a minor. And, he faces up to 20 years of imprisonment for two counts of obstruction. Robinson could also receive a maximum fine of $250,000 on each count of conviction, and he must register as a sex offender. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.

Robinson’s co-conspirator, Ladrigus Dondrea Stuckey a/k/a “Dreek,” pled guilty to conspiracy to commit sex trafficking by force, fraud or coercion on September 11, 2015. 

Robinson’s and Stuckey’s sentencing dates have not yet been set.

This case was investigated by the Federal Bureau of Investigation and the Gwinnett County Police Department with the assistance of the FBI's Metro Atlanta Child Exploitation (MATCH) Task Force, a partnership of police departments in the Atlanta area working together to identify, investigate, and prosecute organized child prostitution enterprises.

Assistant United States Attorneys Jessica C. Morris and Phyllis Clerk 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.

A former certified public accountant in Georgia pleaded guilty today to one count of filing a false tax return, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney John A. Horn of the Northern District of Georgia announced. 

According to court documents and information presented in court, Thomas D. Ziff was a licensed certified public accountant in Georgia, and from approximately January 2006 through December 2010, Ziff operated a tax return preparation and accounting business.  During that time, Ziff was the trustee of a trust that was associated with the last will and testament of another individual.  As the trustee, Ziff opened a bank account in the name of the trust at Wachovia Bank over which he had sole signatory authority; he then proceeded to embezzle and cause to be transferred approximately $300,000 from the trust bank account to other bank accounts that he controlled and then used the funds for his personal use.  Ziff failed to report the embezzled funds as income on his federal income tax returns for the years 2008, 2009 and 2010.

Ziff faces a statutory maximum sentence of three years in prison, one year of supervised release and a $250,000 fine.  As part of his plea agreement, Ziff also agreed to pay restitution to the Internal Revenue Service (IRS).  U.S. District Judge Steve C. Jones of the Northern District of Georgia set sentencing for April 11, 2016.

Acting Assistant Attorney General Ciraolo and U.S. Attorney Horn commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorney Christopher J. Maietta of the Tax Division and Assistant U.S. Attorney Steven D. Grimberg of the Northern District of Georgia, who prosecuted the case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.

ATLANTA – Angelo Alleca and Mark Morrow have been arraigned on charges of orchestrating a multi-million dollar investment fraud scheme.  The Defendants 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.  According to the new indictment, they instead used the money to pay redemptions to earlier investors, to acquire and operate several businesses, and to pay personal expenses.

“These defendants are charged with stealing millions of dollars from unsuspecting investors with false promises,” said U. S. Attorney John Horn.  “Their misrepresentations on how funds would be invested serves as a reminder that citizens need to be careful when choosing where to invest their hard earned money.”   

“The FBI is pleased with the role that it played in bringing this matter forward for prosecution.  While financial restitution to the victim investors remains an issue for another day, it is hoped that these federal criminal charges will provide some solace to those victims,” 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. Morrow served as the administrator of several of the funds.  During the course of the scheme, fraudulent account statements were mailed to investors showing gains, when there was no money in the funds. 

In 2007, Morrow established Detroit Memorial Partners LLC, which sold promissory notes to acquire and manage cemeteries in Michigan.  The indictment alleges that 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 offering documents contained material misrepresentations, including that the notes would be secured by real property when 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 the Defendants fraud schemes, over 300 investors lost over $35 million dollars invested in the Summit Funds and Detroit Memorial Partners LLC.

Alleca and Morrow formed Summit Capital Trading, a registered investment advisor and broker dealer in New York and Ohio in 1997.  Alleca led the Buffalo, New York office and Morrow ran the Cincinnati and Cleveland, Ohio offices.  

Angelo Alleca, 46, of Buffalo, New York, and Mark Morrow, 54, of Cincinnati, Ohio, were indicted on December 15, 2015.      

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 – Larry Webman, Randy Webman, Dara Webman, Dr. George Williams, George Borbas, and Liz Gaitan have been sentenced for illegally selling and distributing prescriptions for opiate-based narcotics and other controlled substances to addicts and drug dealers under the guise of a pain clinic in the Lilburn, Georgia area.  The Webman brothers were the pain clinic owners.  Dara Webman was an office manager and the daughter of Randy Webman.  Dr. George Williams was a physician at the clinic.  George Borbas was a patient and recruiter for the clinic.  Liz Gaitan was a clinic employee. 

“Larry, Randy, and Dara Webman came to Georgia for the sole purpose of profiting from the illicit prescribing of prescription narcotics to addicts and drug dealers, without regard to the safety and well-being of our community,” said U.S. Attorney John Horn. “Once here, they employed the services of an unscrupulous doctor and an employee with no medical training to issue bogus prescriptions for painkillers. The abuse of prescription drugs in Georgia unfortunately has led to record levels of overdoses and addiction as well as a disturbing resurgence in heroin use by people who transition from abusing prescription pain killers to using heroin.”

Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division, commented, “The success of this investigation illustrates how DEA and the law enforcement community are committed to stopping prescription drug abuse which continues to plague this country. These Pill Mill operators will spend well-deserved time in prison.”

“It is our goal as financial investigators to assist our law enforcement partners in dismantling organizations conspiring to illegally distribute and dispense large amounts of prescription meds without a legitimate medical purpose,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS-Criminal Investigation. “The sentence today does not negate the lives that were potentially ruined due to this scheme. However, it does illustrate that IRS Criminal Investigation, along with our law enforcement partners, are committed to pursuing individuals who violate the public trust and enrich themselves financially at the expense of others.”

“I’m incredibly grateful to our Federal and out of State partners who worked hand in hand with our agency to mitigate a substantial risk to our community. Peace and harmony has been restored to our business corridor where the Pain Clinic once illegally operated. We are grateful that justice has been served and that the illegal dispensing of pain medications have been eradicated from our City. These actions are due to the dedicated work from the Lilburn Police Department, DEA, IRS, NC State Bureau of Investigation, and the U.S. Attorney’s Office for the Northern District of Georgia,” said Lilburn Police Chief Bruce Hedley.

“We will always work with our law enforcement partners to combat the illegal sale and use of prescription pills that continue to harm society,” said B.W. Collier, Director, North Carolina State Bureau of Investigation.

According to U.S. Attorney Horn, the charges and other information presented in court: From approximately February 2012 through January 2013, Larry Webman and Randy Webman operated an illegal enterprise, variously known as Premier Medical Management, Inc.; Premier Pain Management, Inc.; Premier Pain Management; and Premier Pain Management and Physical Therapy, located in Lilburn, Georgia.  Dara Webman worked at the clinic as an office manager handing out prescriptions for narcotic opiates to customers in exchange for cash payments ostensibly collected for office visits.

Larry Webman and Randy Webman managed and controlled the clinic.  Though neither had any medical training, they often directed the decisions of the clinic’s physician, Dr. George Williams, with respect to prescribing controlled substances.  The clinic saw as many as 60 customers a day, each paying between $250 and $350 a visit. These customers almost always left with a prescription for controlled substances, which often included Oxycodone, a highly addictive painkiller.  The clinic’s customers regularly traveled long distances to obtain prescriptions for controlled substances.  Most hailed from outside the state, including North Carolina, Kentucky, Tennessee, Ohio, South Carolina, and Florida.  Dr. George Williams saw a customer only at the initial visit, at which time he conducted a brief examination. 

When customers made return visits, they rarely saw the clinic’s physicians, but instead obtained additional prescriptions for controlled substances based solely upon an exam by Liz Gaitan, a clinic employee with no medical authority to do so.  On at least one occasion, Dara Webman mailed opiate prescriptions to undercover officers posing as customers. 

George Borbas sponsored the visits of numerous customers to the clinic in exchange for receiving a portion of the prescription pills the customers were ultimately prescribed.  Almost all customers paid cash.  Larry Webman and Randy Webman personally used that money to promote the clinic’s ongoing illegal activity by, for example, purchasing an on-site MRI machine.

United States District Judge Steve C. Jones sentenced the defendants in this case as follows:

• Larry Webman, 68, of Hollywood, Florida, pleaded guilty to drug trafficking conspiracy and engaging in a money laundering conspiracy, and was sentenced to ten years in prison, three years of supervised release, and a $100,000 fine.

• Randy Webman, 62, of Hollywood, Florida, pleaded guilty to drug trafficking conspiracy and engaging in a money laundering conspiracy, and was sentenced to eleven years in prison and three years of supervised release.

• Dr. George Williams, 48, of Duluth, Georgia, pleaded guilty to drug trafficking conspiracy, and was sentenced to seven years in prison, and five years of supervised release.Williams Dr. Williams has also agreed to forfeit his State of Georgia Physician's License

• Dara Webman, 31, of Hollywood, Florida, pleaded guilty to using the mail to illegally distribute drugs, and was sentenced to one year, six months in prison, and one year of supervised release.

• George Borbas, 54, of Raleigh, North Carolina, pleaded guilty to drug trafficking conspiracy, and was sentenced on December 29, 2015, to five years, ten months in prison.

• Liz Gaitan, 29, of Lawrenceville, Georgia, pleaded guilty to wire fraud, and was sentenced to four years in prison, three years of supervised release, and $525 in restitution.

This case was investigated by the Drug Enforcement Administration, Internal Revenue Service Criminal Investigation, the Lilburn Police Department, and the North Carolina State Bureau of Investigation.

Assistant United States Attorneys Laurel R. Boatright, C. Brock Brockington, and Katherine Terry 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 home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.

ATLANTA – Numerous Georgia Department of Corrections employees, inmates and individuals outside the prison system have been charged federally with conspiring to commit wire fraud, conspiring to commit money laundering, and accepting bribes to smuggle contraband into Georgia prisons.  Much of the alleged criminal activity was committed inside Georgia state prisons and was initiated by inmates.

“The indictments allege that inmates managed and directed a number of elaborate fraud schemes that victimized citizens from across the country from within the Georgia prison system using contraband cell phones,” said U.S. Attorney John A. Horn.  “Since September 2015, we have charged 75 people with criminal conduct that is initiated from within state prisons.  The unfortunate common denominator to this criminal conduct is the pervasive availability of contraband cell phones, which allows too many prison inmates to continue victimizing our communities while serving their sentences.”

“Prisons should be a deterrent for individuals on both sides of its walls.  Acquiring cell phones and smart phones have, however, emboldened current and former inmates and their associates to engage in criminal conduct with a perceived impunity from law enforcement officials.  In many of these cases, the corrections officers themselves facilitated the introduction of the prohibited cell phones into the prisons, thereby allowing these criminal enterprises to continue and even expand.  The FBI will continue to pursue investigations involving public corruption as seen here and will continue to work with its Georgia Department of Corrections partners in addressing these and other problems posed by the illegal introduction of cell phones within the confines of prison walls,” 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:  The Georgia Department of Corrections (“GA DOC”) is the agency responsible for overseeing the operations of the Georgia state prison system and its more than 50,000 inmates. Jimmy Autry State Prison (“Autry”) is a GA DOC prison located in Pelham, Georgia.  Autry is a medium security prison that houses approximately 1,700 adult male inmates. 

Under the Official Code of Georgia § 42-5-18, it is unlawful to give an incarcerated GA DOC inmate a cellular telephone and it is unlawful for a GA DOC inmate to possess a cellular telephone while incarcerated. Accordingly, within the GA DOC prison system, cellular telephones are considered to be contraband.

Nevertheless, GA DOC inmates regularly obtained cellular telephones while incarcerated.  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.  Frequently, the seized cellular telephones were smuggled into GA DOC prisons by correctional officers or other prison employees.  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.  The indictments also allege that correctional officers smuggled other contraband into Autry, such as tobacco products and drugs in exchange for bribes. 

Inmates allegedly 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.

After a victim provided an inmate with the account number of the pre-paid cash card, the inmates then used their contraband cellular telephones to contact 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.

In connection with these schemes, a federal grand jury has returned multiple indictments charging the following individuals:

• Shalonda Baker, 33, of Bainbridge, Georgia, formerly a Correctional Officer at Autry State Prison, has been charged with conspiring to accept bribe payments to smuggle contraband into the prison.

• Leanna Bearden, 25, of Cairo, Georgia, has been charged with conspiring to commit money laundering.

• Iesha Bell, 25, of Waco, Texas, has been charged with conspiring to commit money laundering.

• Austin Bradley, a/k/a “Red,” 22, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud and money laundering.

• Ashley Butler, 28, of Macon, Georgia, has been charged with conspiring to commit money laundering.

• Karhary Campbell, 37, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud, to commit money laundering, and to bribe correctional officers to smuggle contraband into the prison.

• Toccara Cantrell, 30, of Gainesville, Georgia, has been charged with conspiring to commit money laundering.

• Cellie Clark, 35, of Lynchburg, Virginia, has been charged with conspiring to commit money laundering, and money laundering.

• Jokelera Copeland, 28, of Doerun, Georgia, a Correctional Officer at Autry State Prison, has been charged with conspiring to accept bribe payments to smuggle contraband into the prison.

• Jonathan Jamaal Daniels, 22, of Camilla, Georgia, formerly a Correctional Officer at Autry State Prison, has been charged with accepting bribe payments to smuggle contraband into the prison.

• Willa Davis, 60, of Las Vegas, Nevada, has been charged with conspiring to commit money laundering.

• Tyler Dickens, 22, of Bainbridge, Georgia, formerly a Correctional Officer at Autry State Prison and formerly an Early County Sheriff’s Deputy, has been charged with conspiring to accept bribe payments to smuggle contraband into the prison.

• Renaldo Freeman, 30, of Pelham, Georgia, a Correctional Officer at Autry State Prison, has been charged with conspiring to accept bribe payments to smuggle contraband into the prison.

• Caeser Futch, 36, of Lithonia, Georgia, a paroled inmate from Autry and Phillips State Prisons, has been charged with conspiring to commit money laundering.

• Dayia Gilbert, 23, Camilla, Georgia, formerly a Correctional Officer at Autry State Prison, has been charged with conspiring to accept bribe payments to smuggle contraband into the prison.

• Keri Hatcher, 29, of Aurora, Colorado, has been charged with conspiring to commit money laundering.

• Chameta Isom, 32, of Camilla, Georgia, a Correctional Officer at Autry State Prison, has been charged with conspiring to accept bribe payments to smuggle contraband into the prison. 

• Bettie Jones, 53, of Dawson, Georgia, has been charged with conspiring to bribe correctional officers at Autry State Prison to smuggle contraband into the prison. 

• Brian Kennedy, 25, of Thomasville, Georgia, formerly a Correctional Officer at Autry State Prison, has been charged with accepting bribe payments to smuggle contraband into the prison.

• Laporshia Knight, 40, of Macon, Georgia, has been charged with conspiring to commit money laundering.

• Ricky Knight, a/k/a “Slick,” 36, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud, to commit money laundering, and to bribe correctional officers to smuggle contraband into the prison.

• Melissa Lloyd, 35, of Lawrenceville, Georgia, has been charged with conspiring to commit money laundering.

• Jessee Lopez, a/k/a “Loco,” 37, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud, to commit money laundering, and to bribe Correctional Officers to smuggle contraband into the prison.

• Calvin Martin, 21, of Albany, Georgia, formerly a Correctional Officer at Autry State Prison, has been charged with conspiring to accept bribe payments to smuggle contraband into the prison.

• Amber Mayes, 29, of Dublin, Georgia, has been charged with conspiring to commit money laundering.

• Sharron McCoy, a/k/a “Ron G,” 26, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud, to commit money laundering, and to bribe correctional officers to smuggle contraband into the prison.

• Cassaundra McGhee, 45, of McDonough, Georgia, has been charged with conspiring to bribe correctional officers to smuggle contraband into the prison.

• Tadia Mercer, 41, of Leesburg, Georgia, formerly a Correctional Officer at Autry State Prison, has been charged with extortion under color of official right.

• Kiatya Milton, 42, of Sylvester, Georgia, formerly a Correctional Officer at Autry State Prison, has been charged with conspiring to commit wire fraud and money laundering.

• Tangela Parks, 33, of Lithonia, Georgia, has been charged with conspiring to commit money laundering.

• Steven Patterson, 29, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud and money laundering.

• Reginald Perkins, 35, of Atlanta, Georgia, a paroled inmate from Autry State Prison, has been charged with conspiring to commit money laundering.

• David Pinder, a/k/a “Wolf,” 30, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud and money laundering.

• Anthony Powell, a/k/a “Bo,” 39, formerly an inmate at Autry State Prison, has been charged with wire fraud, conspiring to commit money laundering, and money laundering.

• Aida Rosa, 27, of Virginia Beach, Virginia, has been charged with conspiring to commit money laundering.

• Anthony Sanders, a/k/a “Stick ‘em Up,” 25, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud and money laundering.

• Terrance Shields, a/k/a “DK,” 41, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud and money laundering.

• Clifford Smalls, a/k/a “D Boy,” 31, formerly an inmate at Autry State Prison, has been charged with wire fraud and money laundering.

• Shameik Spinks, 22, formerly an inmate at Autry State Prison, has been charged with conspiring to bribe correctional officers to smuggle contraband into the prison.

• Shebrikia Stewart, 28, of Albany, Georgia, formerly a Correctional Officer at Autry State Prison, has been charged with conspiring to accept bribe payments to smuggle contraband into the prison.

• Joseph Tate, Jr., a/k/a “Cool,” 34, formerly an inmate at Autry State Prison, has been charged with conspiring commit wire fraud and money laundering.

• Edward Townsend, 40, formerly an inmate at Autry State Prison, has been charged with conspiring to commit money laundering.

• Derrick Watson, 36, formerly an inmate at Autry State Prison, has been charged with conspiring to smuggle contraband into the prison.

• Veronica Watters, 38, Atlanta, was charged with conspiring to have contraband smuggled into the prison.

  Douglas Welch, 34, of Cordele, Georgia, has been charged with conspiring to commit money laundering and conspiring to bribe correctional officers to smuggle contraband into the prison.

• Benjamin Williams, a/k/a “Ohio,” 24, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud and money laundering.

• Quintavious Williams, 20, of Dawson, Georgia, has been charged with conspiring to bribe corrections officers to smuggle contraband into the prison.

• Shameka Williams, 31, of Albany, Georgia, a Correctional Officer at Autry State Prison, has been charged with accepting bribe payments in exchange for not reporting criminal acts of other Corrections Officers.

• Christina Wilson, 34, of Albany, Georgia, formerly a Correctional Officer at Autry State Prison, has been charged with conspiring to accept bribe payments to smuggle contraband into the prison.

• Ermesha Wingfield, 25, of Albany, Georgia, formerly a Correctional Officer at Autry State Prison, has been charged with conspiring to bribe Correctional Officers to smuggle contraband into the prison.

• Rokei Winston, a/k/a “Double R,” 32, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud and money laundering.

In total, 15 current or former Autry correctional officers, 19 current or former GA DOC inmates, and 17 individuals have been charged by the grand jury in the fraud and bribery schemes.

Members of the public are reminded that the indictments 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.

These cases are being investigated by the Federal Bureau of Investigation the Georgia Bureau of Investigation and the Georgia Department of Corrections Office of Professional Standards.

Assistant United States Attorneys Brent Gray, Shanya Dingle, John Ghose, Steven Grimberg, Nicolas Hartigan, Christopher Huber, Jennifer Keen, Brian Pearce, William Traynor, and Mary Webb are prosecuting the case.

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

ATLANTA - Israel Garcia-Villanueva has been sentenced to over 17 years in prison for his involvement in a conspiracy to traffic over 400 kilograms of methamphetamine.  He received shipments of methamphetamine and coordinated its delivery in Atlanta, Georgia, and throughout the Southeast. 

“The Mexican cartel that employed Garcia-Villanueva shipped massive amounts of methamphetamine into the Atlanta area from the Mexican border,” said U.S. Attorney John Horn.  “Garcia-Villanueva was this cartel’s point of contact, coordinating drug shipments for distribution in this country.  We are committed to disrupting these sophisticated drug organizations by seizing their shipments of narcotics and getting their members off the streets.”   

Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division said of the sentencing, “Mexican drug cartels are the source of so many dangerous drugs destined for our country and are responsible for much of the violence in Mexico today. This sentencing illustrates how DEA and its law enforcement counterparts will not allow these drug traffickers to wreak havoc on our society.”  

According to U.S. Attorney Horn, the charges and other information presented in court: From at least April 2014 through the November 2014, Israel Garcia-Villanueva coordinated large shipments of methamphetamine into the Atlanta metro-area on behalf of a group affiliated with the Knights Templar drug cartel in Mexico.  His co-conspirators sent methamphetamine from Mexico into the United States in a variety of ways, including hiding it in cars with sophisticated, hidden electronic traps, car batteries, diesel fuel tanks, and even statue molds.  Garcia-Villanueva also coordinated delivery of the methamphetamine throughout the Southeast. 

As part of his drug trafficking operations, Garcia-Villanueva used multiple residential homes as methamphetamine “stash houses,” including one house in the Lawrenceville, Georgia area.   The houses were used to safeguard methamphetamine shipments, process the drugs for redistribution, and store drug proceeds.  Garcia Villanueva was also tasked with sending drug proceeds back to Mexico and did so by sending cash with people who drove it over the U.S.-Mexico border and by wiring money to a number of individuals in Mexico.  Although Garcia-Villanueva executed orders given by members of his organization in Mexico, he supervised and managed a crew in the United States that assisted him with his methamphetamine distribution operations.

Israel Garcia-Villanueva, 22, of Guerrero, Mexico, has been sentenced to 17 years, six months in prison to be followed by five years supervised release.  Garcia-Villanueva was convicted on these charges on June 8, 2015, after he pleaded guilty.

This case was investigated by the Drug Enforcement Administration.

Assistant U.S. Attorney Kamal Ghali 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 – Former DeKalb County Zoning Board of Appeals Member Jeremy “Jerry” Clark and Ismail Sirdah have been sentenced to federal prison on corruption charges.  Clark accepted a bribe from Sirdah in exchange for voting for a zoning variance for Sirdah’s late-night billiard hall in DeKalb County, Georgia.

“This is another unfortunate incident of corruption in DeKalb County,” said U.S Attorney John Horn.  “Again, I reiterate that the citizens of DeKalb County expect public officials to act with honestly and integrity.  Public officials who may be tempted by money and graft remember; we remain committed to investigating and prosecuting acts of corruption regardless of who commits them or where they are.”

“Today’s sentencing serves as a reminder to not only these defendants but other public officials that there are consequences for such actions as seen in this case.  Because of the extensive potential damage involved, the FBI regards public corruption investigations as its number one criminal investigative priority and, as such, urges the public to partner with our agents in reporting those who abuse their public offices,” 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 November 2008, the DeKalb County (Georgia) Board of Commissioners passed a zoning ordinance that regulated the operation of late-night establishments and nightclubs. As a general matter, the ordinance required that new businesses obtain a Special Land Use Permit if they wanted to operate either as a late-night establishment or as a nightclub. The zoning ordinance provided an exception to the new rule for pre-existing late-night establishments and nightclubs, which allowed those businesses to be exempt from the 2008 zoning ordinance change.

Ismail Sirdah was the owner and Chief Executive Officer of 2841 Investments, Inc., which did business as LuLu Billiards.  LuLu Billiards was a pool hall and bar located in Tucker, Georgia, which is located in DeKalb County.

Based on the new zoning ordinance, in November 2011, the DeKalb County Department of Planning and Sustainability informed LuLu Billiards in writing that it was grandfathered in only as a late-night business – and thus could neither operate as a nightclub nor have a dance floor.  Despite the notice, Lulu Billiards operated as a nightclub and possessed a dance floor.

In September 2012, the Department of Planning and Sustainability issued a warning to Sirdah through LuLu Billiards for operating as a nightclub with a dance floor. In the warning, Sirdah was again advised that under the new zoning ordinance, LuLu Billiards could not operate as a nightclub or have a dance floor without a Special Land Use Permit.

Sirdah responded that LuLu Billiards had operated as a nightclub prior to the 2008 zoning ordinance – and as a result, should be grandfathered in as a nightclub under the new zoning rule.

Sirdah appealed not being able to operate LuLu Billiards as a nightclub to the DeKalb County Zoning Board of Appeals. The Zoning Board of Appeals hears and decides zoning appeals when a property owner alleges that a county official committed a zoning error. From January 2009 to May 2013, Jeremy Clark served as a member of the Zoning Board of Appeals.

Prior to the hearing on the appeal, Sirdah met with Clark. During those meetings, Sirdah made it clear to Clark, that if the Zoning Board of Appeals approved Sirdah’s petition to operate as a nightclub, Clark would be rewarded.

In November 2012, the Zoning Board of Appeals approved Sirdah’s request to operate as a nightclub. Clark voted in favor of LuLu Billiards being able to operate as a nightclub. In return for the vote, Sirdah paid Clark approximately $2000 in cash and donated approximately $1,500 to a non-profit interest with which Clark was involved.

On February 19, 2015, Clark, 43, of Lithonia, Georgia, pleaded guilty to accepting a bribe from Sirdah. He was sentenced to nine months in prison followed by three years of supervised release and order to pay a $3,500 fine. 

On April 2, 2015, Sirdah, 53, of Duluth, Georgia, pleaded guilty to bribing Clark.  He was sentenced to six months in prison followed by two years of supervised release and order to pay a $10,000 fine. 

These cases were investigated by the Federal Bureau of Investigation.

Assistant United States Attorney Jeffrey W. Davis prosecuted the cases.

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

ATLANTA - The U.S. Attorney’s Office for the Northern District of Georgia has reached a settlement agreement with Grady Memorial Hospital (Grady), the largest hospital in the State of Georgia and located in Atlanta, Georgia, to resolve an investigation into allegations that it violated Title III of the Americans with Disabilities Act (ADA) by failing to ensure effective communication with individuals who are deaf and hard of hearing.

“When a deaf patient or caregiver is unable to understand what is happening during a medical visit or procedure, it can be a terrifying experience and adversely affect the quality of care,” said U.S. Attorney John Horn.    “I am encouraged that Grady has demonstrated an ongoing commitment to ensure that people who are deaf or hard of hearing have equal access to quality medical care.”  

The U.S. Attorney’s Office initiated an investigation after receiving a complaint alleging that Grady failed to provide appropriate auxiliary aids and services when necessary to ensure effective communication. The complainant, who is deaf and relies on American Sign Language as his primary means of communication, was treated in the Emergency Care Center at Grady after falling from a ladder.  The complainant alleged that he was in a lot of pain during his six hour stay in the Emergency Care Center.  Complainant did not understand most of what was being communicated because he was not provided a sign language interpreter or other auxiliary aid or service. 

Under the settlement agreement, Grady has agreed to ensure effective communication to patients who are deaf and hard of hearing.  Among other things, Grady has agreed to provide mandatory in-service training to all its Emergency Care Center personnel and provide reports to the U.S. Attorney’s Office regarding its compliance with the settlement agreement. The training will address the needs of deaf and hard of hearing patients and companions.  Grady also agreed to pay $5,000 to the complainant.          

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

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

Assistant United States Attorney Aileen Bell Hughes and Assistant United States Attorney Neeli Ben-David are representing the United States in this matter.

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

ATLANTA - Marvious D. Hester has been sentenced to four years and nine months in federal prison for theft of government funds and aggravated identity theft.  The defendant was purchasing U.S Treasury checks which had been stolen in the metropolitan Atlanta, Georgia, area and elsewhere.

“Hester and his co-conspirator deposited over $750,000 in stolen U.S. Treasury checks,” said U.S. Attorney John Horn.  “Money that rightfully belonged to honest taxpayers and Social Security beneficiaries.  Unfortunately, Treasury Check schemes like this are becoming more and more common in Atlanta.”

“This sentencing again emphasizes that the Internal Revenue Service and U.S. Attorney’s office will continue their aggressive pursuit of those who use fraudulent methods in an attempt to steal from the American public,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS-Criminal Investigation.  “This sentence is a message to others that such greed based criminal behavior as seen in this case comes with a cost.”

Thomas Noyes II, U.S. Postal Inspector in Charge of the Charlotte Division stated, “This is a textbook example of solid investigative work and cooperation on everyone’s part.  We are proud to have prevented further victimization by these individuals, who could have caused even more considerable financial damage to law abiding taxpayers.”      

According to U.S. Attorney Horn, the charges and other information presented in court: In approximately 2011, Hester met Rasheda Thomas, who operated a tax preparation business which she used to file fraudulent tax returns.  Hester convinced Thomas to abandon her tax preparation business and, instead, use her business bank account to deposit stolen U.S. Treasury checks which Hester was able to obtain. 

Together, Hester and Thomas deposited over $750,000 in stolen U.S. Treasury checks into various J.P. Morgan Chase bank accounts.  On December 10, 2013, Thomas was charged in a federal indictment with theft of government funds and aggravated identity theft.  She pleaded guilty on April 28, 2014, and provided information that incriminated Hester.  Hester was indicted on the same charges on May 5, 2015 and pleaded guilty on September 30, 2015. 

Marvious D. Hester, 35, of Atlanta, Georgia, has been sentenced was sentenced by U.S. District Judge Orinda D. Evans to four years, nine months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $752,744.19.  Hester was convicted on these charges on September 30, 2015, after he pleaded guilty.

Rasheda D. Thomas was sentenced on July 28, 2014 to four years, nine months in federal prison, followed by three years supervised release, and ordered to pay $686,886.53 in restitution.  Thomas was convicted on these charges on April 28, 2014, after she pleaded guilty.

This case was investigated by the Internal Revenue Service Criminal Investigation, Social Security Administration - Office of the Inspector General, and United States Postal Inspection Service.

Special Assistant United States Attorney Diane C. Schulman and Assistant United States Attorney Steven D. Grimberg prosecuted the case.

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

ATLANTA – Three current Georgia Department of Corrections (GDOC) inmates and fourteen others have been charged federally for their roles in a wide-ranging drug trafficking conspiracy operating from within prison walls.  Using contraband cellular telephones inside of prison, and employing a network of brokers, distributers, and runners outside of prison, GDOC inmates controlled and managed the distribution of illegal narcotics throughout the Atlanta metropolitan area and the southeast region of the United States. 

“Once again, inmates have gained access to contraband cellular telephones and used them to organize and manage an extensive criminal enterprise from inside prison,” said U.S. Attorney John Horn.  “This indictment alleges that these inmates capitalized on their near unfettered access to cell phones to not only continue their criminal activities, but to direct the criminal activities of others outside of prison.  It makes no sense that, where prison is supposed to remove criminals from our community and rehabilitate them, the inmates continue to victimize society from behind prison bars.”

“This case clearly illustrates the growing problems stemming from cell phones within prison walls and in the hands of unrepentant inmates determined to further inflict harm on individual victims or the general public with their continued criminal activity.  Prisons should serve as a deterrent for those on both sides of its walls but cell phones, smart phones, or other such available contact with the outside world gives those individuals the unmitigated opportunity to conduct these criminal enterprises in a manner that is difficult at best for law enforcement to detect and neutralize and costly in terms of resources and manpower at worst,” 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: The indictment alleges that GDOC prison inmates across several prisons conducted a wide-ranging drug trafficking conspiracy by leading, directing, and managing a wide-ranging drug trafficking conspiracy and the activities of brokers, distributers, and runners outside of prison via the use of contraband cellular telephones.  The cellular telephones were often equipped with touch screens and internet access that enabled prisoners to coordinate drug transactions.  Further, on numerous occasions, multiple cellular telephones were used simultaneously to communicate with the larger network of drug suppliers, distributers, and couriers using voice calls, text messages, and WhatsApp Messenger to coordinate illegal drug transactions. 

The following individuals have been indicted, and many of the defendants made their initial appearances before United States Magistrate Judge Linda T. Walker:

The GDOC inmates who were charged are:

• Francisco Palacios Baras, a/k/a “Chapparro,” a/k/a “Shorty,” a/k/a “Kiko,” 36, an inmate at Hancock State Prison in Sparta, Georgia.Palacios Baras has been charged with one count of conspiring to distribute at least 50 grams of methamphetamine and eleven counts of possessing methamphetamine with the intent to distribute.

• Johnathan Corey McLoon, a/k/a “Drop,” 30, an inmate at Valdosta State Prison in Valdosta, Georgia, has been charged with one count of conspiring to distribute at least 50 grams of actual methamphetamine and two counts of possessing methamphetamine with the intent to distribute.

• Christopher Wayne Hildebrand, 33, an inmate at Costal Transition Center in Savannah, Georgia has been charged with one count of conspiring to distribute at least 50 grams of actual methamphetamine and one count of possessing methamphetamine with the intent to distribute.

While they were inmates at Hancock State Prison, Valdosta State Prison and Costal Transition Center, Palacious, McLoon and Hildebrand allegedly obtained contraband cellular telephones and used them to lead and manage an extensive drug trafficking network responsible for the trafficking in crystal methamphetamine in the Atlanta and elsewhere.

A paroled GDOC inmate who was charged, and who allegedly participated in the drug trafficking network outside of prison is:

Ruben Antonio Ruiz, a/k/a “Scrapy,” a/k/a “Flaco,” 36, of Gainesville, Georgia.Ruiz has been charged with one count of conspiring to distribute at least 50 grams of actual methamphetamine, and one count of possessing methamphetamine with the intent to distribute.

The other individuals who were charged and participated in the drug trafficking network outside of prison are:

• Salvador Pineda Melendez, a/k/a “Tomas Pineda Medoza,” 30, of Marietta, Georgia, has been charged with one count of conspiring to distribute at least 50 grams of actual methamphetamine, and two counts of possessing methamphetamine with the intent to distribute.

• Olga Veronica Ramirez Reyes, 27, of Marietta, Georgia, has been charged with one count of conspiring to distribute at least 50 grams of actual methamphetamine, and five counts of possessing methamphetamine with the intent to distribute.

• Gustavo Adolfo Ramirez Reyes, a/k/a “Primo,” 24, of Marietta, Georgia, has been charged with one count of conspiring to distribute at least 50 grams of actual methamphetamine, and three counts of possessing methamphetamine with the intent to distribute.

• Jose Rolando Ramos Remez, 25, of Gainesville, Georgia, has been charged with one count of conspiring to distribute at least 500 grams of a mixture and substance containing a detectable amount of methamphetamine, one count of possessing methamphetamine with the intent to distribute, and one count of possessing a firearm in furtherance of a drug trafficking crime.

• Yony Israel Yanes Padilla, 26, of Gainesville, Georgia, has been charged with one count of conspiring to distribute at least 500 grams of a mixture and substance containing a detectable amount of methamphetamine, one count of possessing methamphetamine with the intent to distribute, and one count of possessing a firearm in furtherance of a drug trafficking crime.

• Troy Oneal Watkins, 46, of Roswell, Georgia, has been charged with one count of conspiring to distribute at least 50 grams of actual methamphetamine, and one count of possessing methamphetamine with the intent to distribute.

• Gregory Landon Smith, 55, of Plainville, Georgia, has been charged with one count of conspiring to distribute at least 50 grams of actual methamphetamine, and one count of possessing methamphetamine with the intent to distribute.

• Robert Lynn White, 55, of Silver Creek, Georgia, has been charged with one count of conspiring to distribute at least 50 grams of actual methamphetamine, and one count of possessing methamphetamine with the intent to distribute.

• Billy Joe Foster, 35, of Tennessee, has been charged with one count of conspiring to distribute methamphetamine, and one count of possessing methamphetamine with the intent to distribute.

• George Travis Roach, 36, of Chattanooga, Tennessee, has been charged with one count of conspiring to distribute at least 50 grams of a mixture and substance containing a detectable amount of methamphetamine, and one count of possessing methamphetamine with the intent to distribute.

• Melissa Leann Waters, 30, of Tennessee, has been charged with one count of conspiring to distribute at least 50 grams of a mixture and substance containing a detectable amount of methamphetamine, and one count of possessing methamphetamine with the intent to distribute.

• Charles Randall Warthen, 52, of Mableton, Georgia, has been charged with one count of conspiring to distribute at least five grams of actual methamphetamine, and one count of possessing methamphetamine with the intent to distribute.

• Walter Alvarado Lopez, a/k/a “Andy,” 28, of Atlanta, Georgia, has been charged with one count of conspiring to distribute at least five grams of actual methamphetamine, and one count of possessing methamphetamine with the intent to distribute.

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 Tasheika Hinson 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 – Anthony Alika, Sonia Alika, and Rapheal Atebefia, all residents of Austell, Georgia, have been indicted for laundering fraudulent tax refunds using stolen identities.  The charges include money laundering, conspiracy to money launder, structuring monetary transactions, access device fraud, and aggravated identity theft.

“These defendants allegedly received hundreds of thousands of dollars in fraudulent tax refunds using stolen identities,” said U.S. Attorney John A. Horn.  “Stolen-identity tax return fraud unfortunately is a growing problem, and the perpetrators are becoming more sophisticated at concealing the proceeds of their crimes.”

“A vital element in this investigation was following the flow of money being received by the defendants in order to determine the true source of the funds,” stated Veronica F. Hyman-Pillot, Special Agent in Charge.  “These defendants conduct cost the U.S. Treasury thousands of dollars, and IRS Criminal Investigation will continue to utilize every tool necessary to unravel financial transactions related to fraudulently obtained tax refunds and the theft of innocent individual’s identities.”

“This investigation was an excellent example of a partnership between federal law enforcement agencies working together to dismantle a fraud conspiracy,” said Thomas Noyes II, U.S. Postal Inspector in Charge of the Charlotte Division.  “I fully commend the hard work and countless hours put forth by all agencies involved including the U.S. Attorney’s Office, which resulted in bringing the individuals in this case to justice.”

According to U.S. Attorney Horn, the charges, and other information presented in court:  The indictment charges that these defendants conspired together to launder the proceeds from a stolen identity refund fraud scheme, according to allegations in the indictment.  It is alleged that the defendants and others obtained means of identification of actual individuals, including their names and social security numbers and used this information to access the Internal Revenue Service’s (IRS) “Get Transcript” database. 

Anthony Alika, Atebefia and others are also alleged to have obtained prepaid debit cards from stores located in multiple states, registered the cards in the names of the stolen identities and then filed false income tax returns using the stolen identities and directed the IRS to deposit the tax refunds onto these cards.  To conceal their fraud, Anthony Alika, Atebefia and others allegedly used the prepaid debit cards to purchase money orders, which Anthony Alika, Sonia Alika and Atebefia deposited into bank accounts and then structured cash withdrawals of the proceeds in order to prevent the bank from filing Currency Transaction Reports.   

Anthony Alika, 42, Sonia Alika, 27, and Rapheal Atebefia, 33, all of Austell, Georgia, were indicted by a federal grand jury on January 5, 2016.  Atebefia was arraigned before U.S. Magistrate Judge Linda T. Walker. 

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 the United States Postal Inspection Service.

DOJ Criminal Tax Division Trial Attorneys Michael Boteler and Charles Edgar, Jr., and Assistant United States Attorney Shanya J. Dingle 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 – Anthony Paul Smith has been sentenced 18 years, six months in federal prison for a series of violent armed robberies of six small businesses that he committed in Clayton County, and Henry County, Georgia. 

“The hard working citizens of our community deserve to feel safe and secure at their workplaces,” said U.S. Attorney John A. Horn.  “The defendant’s numerous acts of violence against multiple victims, including several who knew him, show a complete disregard for people’s lives.   The sentence should reassure citizens of our District that we will find, prosecute, and ultimately remove from the community those who place others in danger through their own violent acts.”

“This investigation and sentence is another example of ATF remaining on the frontline of preventing violent crime through excellent cooperation with our law enforcement partners.  Through this cooperative effort we were able to apprehend and successfully prosecute a violent and dangerous individual who posed a significant threat to the public,” said ATF Assistant Special Agent in Charge John Schmidt.

According to U.S. Attorney Horn, the charges and other information presented in court:  Between December 10, 2013, and January 14, 2014, Smith committed the listed six armed commercial robberies and theft of a firearm from a federal firearms licensee: 

• December 10, 2013 - Smith entered Papa John’s Pizza store located in Jonesboro, Georgia.  He approached employee, L.C., and demanded money from her at gunpoint.  During the robbery, Smith also grabbed employee B.M. around the neck, placed the barrel of the gun to her neck, and said “I want the money.” Smith threatened to shoot both B.M. and L.C., and fled the restaurant after stealing $1,500.

• January 5, 2014 - K.D., an employee of Boost Mobile located in Jonesboro, Georgia, reported to Clayton County Police officers that a man robbed her at gun point of $2,000 while she stood at the cash register.  K.D. identified Smith as the armed robber, who she recognized as a former customer at the store. During the robbery, Smith took K.D.’s personal cell phone, ordered her to remove all the money from the cashier drawer, and demanded that she unplug the landline phone in the office and go to the back of the store.

• January 7, 2014 - Smith committed an armed robbery of a Metro PCS store in Stockbridge, Georgia.  Just after the robbery, employee K.K. met with investigators and stated that Smith had entered the store several minutes before the robbery and inquired about an iPhone.  K.K. identified Smith as the individual who robbed him at gun point of $6,785. 

• January 8, 2014 - Smith entered Forest Park Army and Navy store located in Forest Park, Georgia, a federal firearms licensee, and stole a Ruger pistol. Surveillance video footage from the store captured images of Smith during the burglary.

• January 9, 2014 - Smith entered Big D’s Tobacco and Gifts located in McDonough, Georgia.  He approached employee T.F. at the customer counter, pointed a silver handgun at her, and demanded money.  Smith left the store after stealing more than $400 from T.F. T.F. recognized him as a recent customer.

• January 11, 2014 - Smith committed an armed robbery of Metro PCS located in Jonesboro, Georgia.  He approached employee K.H., cocked and pointed a gun at her, and demanded money from the store’s register and safe.  K.H. recognized Smith as a former high school classmate.  Smith fled the store after stealing $3,767.

• January 14, 2014 - Smith entered another Metro PCS store in Jonesboro, Georgia.  He approached employee A.G., pointed a silver revolver at her, and stole $939, as well as a Samsung Galaxy phone, Samsung Galaxy Tablet, and the store’s cordless phone.

Anthony Paul Smith, 24, of Jonesboro, Georgia, was sentenced on January 6, 2015, to 18 years, six months in federal prison, to be followed by five years of supervised release, and restitution of $16,000. 

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives as well as the Clayton County Police Department and Henry County Police Department.

Assistant United States Attorneys Richard S. Moultrie, Jr. and Suzette Smikle 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 - Edgar Valdez-Villareal, a/k/a La Barbie, who was born in the United States and rose to be a high-level leader of Mexico's Beltran-Leyva Cartel, has pleaded guilty to charges of cocaine importation and distribution, and money laundering.

“Valdez’s conviction is a victory for the people in both the United States and Mexico whose lives were affected by his cocaine trafficking, through drug addiction and community decay or through the violence and corruption associated with the cartel’s daily business,” said U. S. Attorney John Horn.  “Valdez stands as a prime example of the Mexican cartels’ influence over the U.S. drug trade, as truckload after truckload of his cocaine traveled across the border to Atlanta for further transport to cities throughout the eastern United States.  We are grateful for the cooperation of the Mexican government in securing Valdez’s arrest and extradition to Atlanta to face these charges.”

“Since 2004, Edgar Valdez-Villarreal (La Barbie) was responsible for the distribution of 1000’s of kilograms of Cocaine throughout the Southeast, and more specifically the Northern District of Georgia.  This is a great day for DEA, the Government of Mexico and literally hundreds of DEA’s federal, state and local partners throughout the United States. I want to thank the US Attorney in the Northern District of Georgia, and his staff for their outstanding efforts throughout this investigation.  This is a victory for this great Nation and our partners in the Republic of Mexico.” Said Atlanta’s DEA Special Agent in Charge Daniel R. Salter.   

According to U.S. Attorney Horn, the charges and other information presented in court: As early as the year 2000, Valdez began his drug trafficking career as a marijuana distributor in Laredo, Texas.  He soon developed cocaine customers in New Orleans, Louisiana, Memphis, Tennessee, and Mississippi, and his activities escalated into regular shipments of 150-180 kilograms of cocaine to his customers.  Valdez eventually entered into a relationship with Arturo Beltran-Leyva, who was then associated with the Sinaloa Cartel in Mexico, and began coordinating shipments of cocaine into Mexico from Colombia and other South American countries using speedboats and airplanes, while also paying bribes to local law enforcement officials.  The cocaine was then transported across the border into the United States.

In 2004, Valdez and his partners sought out a more formalized distribution organization for their cocaine customers in Memphis and Atlanta.  Valdez obtained cocaine from Colombia, exported the cocaine from Mexico to customers located in the United States in tractor trailer loads of up to 300 kilograms twice per week, then arranged for currency to be smuggled back across the border to the organization’s supervisors in Mexico.  In Atlanta alone, the organization distributed a total of 1,500 kilograms of cocaine in just six months in 2005.  DEA agents were able to build the case against Valdez using wiretaps, seizures of over 100 kilograms of cocaine and $4 million of drug proceeds, and witness testimony.

Each of the drug trafficking charges in this case carries a maximum sentence of life in prison, a fine of up to $10,000,000, a lifetime term of supervised release, and a $100 special assessment, and requires a mandatory minimum sentence of 10 years imprisonment and five years of supervised release.

The money laundering charge carries a maximum sentence of 20 years in prison, a fine of up to $500,000 or twice the amount of funds that were laundered, a three-year term of supervised release, and a $100 special assessment.  In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.

Sentencing for Edgar Valdez-Villareal, a/k/a La Barbie, 42, has not yet been scheduled.

This case is being investigated by the Drug Enforcement Administration.

United States Attorney John Horn and Assistant United States Attorneys Elizabeth M. Hathaway and Garrett L. Bradford are prosecuting the case.  The Justice Department’s Office of International Affairs provided assistance with this 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 - Gary Hilliard has pleaded guilty to embezzling more than $272,000 from the Salvation Army Metro Atlanta Area Command while serving as its finance manager.  

“The Salvation Army provides a wide range of charitable programs and services to needy citizens in our community,” said U. S. Attorney John Horn.  “Unfortunately, Mr. Hilliard chose to disregard his former employer’s motto of ‘Doing the Most Good’ by fraudulently diverting charitable funds to his own use without regard for the underprivileged who are in such desperate need of this help.”

“The United States Secret Service will continue to collaborate with its law enforcement partners to target and arrest individuals who violate the trust of our community to further their personal financial gain,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.           

According to U.S. Attorney Horn, the charges and other information presented in court:  Hilliard was hired as the finance manager for the Metro Atlanta Area Command in June 2008.  As the finance manager, Hilliard supervised the accounts payable department and had the authority to approve vendor invoices and countersign checks to vendors.  While carrying out these duties between December 2010 and December 2012, Hilliard embezzled more than $272,000.

Hilliard embezzled a significant portion of that money by creating and submitting bogus invoices and documents that purported to be from legitimate vendors and business partners of the Metro Atlanta Area Command to the accounts payable department.  He submitted bogus invoices from advertising agencies who conducted fundraising campaigns on behalf of the Metro Atlanta Area Command, consultants, and other business partners.  He chose vendors and businesses who submitted invoices to the Salvation Army on a routine basis because it was unlikely that these invoices or payments would be questioned, and because Hilliard was directly involved in the reconciliation of some of these accounts. He approved or caused these bogus invoices to be approved, which led to checks being generated from the Metro Atlanta Area Command’s operating account.  Hilliard countersigned these checks in his role as finance manager, obtained or forged the appropriate authorized signature, then deposited them into bank accounts he controlled. 

Initially, Hilliard deposited the checks into his personal checking and savings accounts.  Beginning in June 2011, Hilliard opened bank accounts in some of the vendors’ names and deposited the fraudulently obtained checks.  To accomplish this, Hilliard submitted three separate false sworn applications to Cobb County, Georgia, to register businesses in the names of the vendors. 

On each of these applications, Hilliard falsely stated that he was conducting business in Cobb County in the name of the vendor, provided information on the vendor’s line of business, and stated that he was the sole person composing the business.  He then presented each business certificate issued by Cobb County to the bank to open a business bank account in the vendor’s name, and deposited checks made out to the vendor into that account.  Hilliard’s scheme unraveled in December 2012, when his bank questioned a discrepancy between the name of the payee on a Metro Atlanta Area Command check and the depository account and decided to contact the Metro Atlanta Area Command.  

Sentencing for Gary Hilliard, 47, of Mableton, Georgia, is scheduled for March 31, 2016, at 9:00 a.m. before United States District Judge Leigh Martin May.

This case is being investigated by the United States Secret Service.  The Salvation Army Metro Atlanta Area Command fully cooperated with the investigation. 

Assistant United States Attorney Sally B. Molloy 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 - Horacio Sanchez-Lopez has been sentenced to one year and two months in federal prison for conspiring to manufacture, sell, and distribute counterfeit federal Permanent Resident and Social Security cards.

“Trafficking in counterfeit immigration and Social Security documents threatens the integrity of systems which verify employment,” said U. S. Attorney John Horn. “Forged documents not only circumvent those systems, but can also be used for more nefarious activities.”

“Fraudulent identity documents pose a serious threat to public safety as they enable people to commit a broad range of criminal offenses from identity theft to financial crimes,” said Nick S. Annan, special agent in charge of ICE Homeland Security Investigations Atlanta. “HSI will continue to actively pursue individuals who engage in this type of criminal activity that threatens the safety and security of our communities.”

According to U.S. Attorney Horn, the charges and other information presented in court: In the summer of 2014, Homeland Security Investigations (HSI) agents began investigating a conspiracy that sold counterfeit identification documents in the Chamblee, Georgia, area. Working through cooperating individuals, agents bought several pairs of Permanent Resident and Social Security cards from Horacio Sanchez-Lopez and a co-conspirator, Jorge Manuel Rosado. Sanchez-Lopez or Rosado delivered the documents to customers who ordered them over the phone from another individual, and they sold the documents to confidential informants for between $80 and $120 per set.

On October 16, 2014, agents executed a search warrant at the house in Chamblee where Sanchez-Lopez, Rosado, and others lived.  While the conspirators had moved the computer they had been using to make the fraudulent documents, agents found, among other things, a used printer ribbon that lab analysis later found contained 215 images of ID cards. Agents also recovered 93 fraudulent cards that had been cut in half and thrown in a trash can, and a smart phone that contained thousands of passport-style photos for ID cards.

Horacio Sanchez-Lopez, 42, of Chamblee, Georgia, was sentenced by U.S. District Judge Leigh Martin May to one year, two months in prison, followed by three years of supervised release. Sanchez-Lopez is an illegal alien from Mexico, and has been ordered to be transferred for deportation proceedings. Sanchez-Lopez was convicted on these charges on October 8, 2015, after he pleaded guilty.

Jorge Manuel Rosado, 45, of Chamblee, Georgia, pleaded guilty on September 11, 2015, to a conspiracy charge and was sentenced to prison for fifteen months by Judge May.

The conspiracy remains under investigation by the Homeland Security Investigations.

Assistant United States Attorney William G. Traynor 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 - Chiedu “George” Chukwuka has been sentenced in connection with his lead role in a mortgage fraud ring that spanned five years and caused millions in losses.  Chukwuka, along with his co-defendants and other co-conspirators, engaged in a massive property-flipping scheme resulting in over $5.8 million in actual losses to financial institutions between 2006 and 2011. 

“At the height of the recent mortgage-fraud crisis, this property-flipping scheme caused scores of homes to fall into foreclosure, costing financial institutions millions of dollars in losses,” said U. S. Attorney John Horn.  “Many communities in our district have been decimated by mortgage fraud during the last 15 years and even now struggle to recover from the effects of these schemes.” 

“The sentencing of Mr. Chukwuka brings to a close a lengthy investigation and prosecution of a criminal enterprise that targeted the banking industry through their prolific mortgage fraud schemes.  Mr. Chukwuka, considered by law enforcement and prosecution to be head of this enterprise, caused extensive damage with high loss amounts to those victim banks involved.  The FBI is pleased with the role it played in bringing about this sentencing to federal prison of Mr. Chukwuka as well as the previous sentencings of his co-defendants in this matter,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.

According to U.S. Horn, the charges and other information presented in court:  Chukwuka, along with his co-defendants and co-conspirators, recruited straw buyers to purchase homes at a discounted price, typically a bank-owned or distressed property.  The group then recruited a second straw buyer to purchase the same home at a dramatically inflated price. In turn, Chukwuka, his co-defendants and co-conspirators applied for an acquisition loan for the second straw buyer, supporting the loan application with false income, fake employment, and fraudulent net worth data.

The group profited from their scheme by pocketing the acquisition loan proceeds paid by the victim bank to the straw seller (who was the straw purchaser in the first transaction). The amount of profit was the difference between the price paid by the straw purchaser in the first transaction and the price paid by the straw purchaser in the second transaction, less transaction costs.  Since none of the straw purchasers made any significant loan payments, the targeted properties usually went into foreclosure, resulting in over $5.8 million in actual losses to financial institutions between 2006 and 2011. 

Chiedu “George” Chukwuka, 47, of Stone Mountain, Georgia, was sentenced by U.S. District Court Judge Timothy C. Batten, Sr. to serve nine years in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $5,868,243.80.  Chukwuka was convicted of conspiracy to commit wire fraud on August 10, 2015, after he pleaded guilty.

The following five defendants also pleaded guilty for their roles in the scheme, and were previously sentenced by U.S. District Court Judge Timothy C. Batten, Sr. as follows:

• Shelly Gee, a/k/a Shelly Baker, 48, of Atlanta, Georgia, was sentenced on November 10, 2015, 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 $2,243,909.99. Gee was convicted after pleading guilty on June 17, 2015.

• Sandra Petgrave, 43, of Stone Mountain, Georgia, was sentenced on December 4, 2015, 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 $1,051,970.77. Petgrave was convicted after pleading guilty on August 18, 2015.

• Kennedy Simmonds, 54, of Snellville, Georgia, was sentenced on December 17, 2015, to three years, ten months in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $5,868,243.80. Simmonds was convicted after pleading guilty on July 6, 2015.

• Marcelle Welch, 37, of Stone Mountain, Georgia, was sentenced on December 17, 2015, to two years, three months in prison, followed by three years of supervised release, and ordered to pay restitution in the amount of $2,554,189.25. Welch was convicted after pleading guilty on July 29, 2015.

• Leah Freeman, 43, of Atlanta, Georgia, was sentenced on December 17, 2015, to two years in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $1,828.532.94. Freeman was convicted after pleading guilty on June 19, 2015.

In a related case, Chinedum Oli, 42, of Snellville, Georgia, was sentenced on February 19, 2013, by Senior U.S. District Court Judge Marvin H. Shoob to five years in prison, followed by five years of supervised release, and ordered to pay restitution in the amount of $4,373,281.63. Oli was convicted after pleading guilty on October 9, 2012.

These cases were investigated by the Federal Bureau of Investigation.

Assistant United States Attorneys Jamie L. Mickelson and Steven D. Grimberg prosecuted the cases.

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 - Daphne Maria Patterson has been sentenced to five years and one month in federal prison for health care fraud and aggravated identity theft for filing claims with health insurance companies in which she sought reimbursement for providing medical care to patients that she never provided. Patterson stole personal identifying information from her patients and their family members so she could file more than $2 million in claims from five health insurance companies.

“This defendant was a trusted health care official who stole personal information from her patients’ and their families to enrich herself,” said U.S. Attorney John Horn. “Patterson thought nothing of defrauding health insurance companies or the effects that her scheme could have on her patients’ lives.”

“The defendant in this case displayed a complete disregard for those patients that she victimized as well as the insurance companies that she stole from.  The FBI will continue to work with its various law enforcement partners to better protect health care insurance providers and their clients from this type of fraud,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.

“Fraudulent actions like Ms. Patterson’s not only betrayed the trust that patients placed in her, but they also made everyone’s insurance premiums go up,” Commissioner Hudgens said. “I’m appreciative that U. S.  Attorney Horn’s office diligently pursued prosecution in this case.”

According to U.S. Attorney Horn, the charges and other information presented in court: Patterson’s fraud began when she worked as a nurse practitioner for a general medical practice in Lawrenceville, Georgia. Although she was not supposed to bill insurance companies as an employee, she stole identifying information of her patients, and their family members—most of whom Patterson had not treated at all.  She filed false claims with the insurer claiming to have provided various allergy tests and treatments to the beneficiaries, when in fact she had not provided these services.

Once her employment with the general medical practice ended, Patterson opened her own clinic, called Healthier U 4 Ever Complete Wellness Center in Stone Mountain, Georgia. While there, Patterson used her patients’ personal information to continue her scheme, and billed various health insurance companies for expensive allergy tests and treatments, when in fact most patients were receiving weight loss advice and assistance. In total, Patterson received more than $1 million from the health insurance companies as a result of her false claims.

Daphne Maria Patterson, 44, of Lithonia, Georgia, has been sentenced to five years, one month in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $1,153,383.76.  Patterson was convicted of these charges on October 7, 2015, after she pleaded guilty.

This case was investigated by the Federal Bureau of Investigation and the State of Georgia Office of Commission of Insurance.

Assistant United States Attorney Jamie L. Mickelson prosecuted the case.

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

ATLANTA - Jessica Hills and Kiisha Hills have been sentenced for their roles in a tax fraud scheme involving Direct Tax, a tax preparation business with three locations in the Atlanta-College Park area.  Jessica Hills owned and operated Direct Tax, and her sister, Kiisha Hills, acted as a supervisor in one office.

“The Hills’ stole the identities of thousands of taxpayers and then used the information to steal millions of dollars from the U.S. Treasury by filing fraudulent tax returns,” said U. S. Attorney John Horn.  “Sadly, these “false filing” schemes are now all too common.  As we approach tax filing season, this case is a reminder that taxpayers should carefully guard their Social Security numbers and other sensitive personal information and monitor any tax filing made on their behalf.”

“Return Preparer fraud is a priority for IRS Criminal Investigation and we have committed many resources to investigating and prosecuting cases just like this one,” stated Veronica F. Hyman-Pillot, Special Agent in Charge. “It is our hope that today's sentencing will send a strong message to other return preparers that committing refund fraud is a crime and can result in jail time.”        

“Using the Social Security number of another to commit fraud, unfortunately, has become a common occurrence”, said Margaret Moore-Jackson, Special Agent-in-Charge, Social Security Administration-Office of the Inspector General.  “SSA-OIG special agents are well-trained to detect, investigate, and locate identity thieves,” and that her office, “will utilize collaborations between law enforcement agencies at all levels, and continue to present cases to the U.S. Attorney’s Office to prosecute those who commit identity theft and financial fraud.”

According to U.S. Attorney Horn, the charges and other information presented in court:  During tax years 2012, 2013, and 2014, Direct Tax filed over 2,000 federal income tax returns, seeking millions of dollars in refunds.  These returns included either fraudulent information designed to increase the refund amount, or were filed using stolen identities.  Direct Tax not only continued to file fraudulent tax returns after College Park police executed a search warrant at the College Park location, it also filed fraudulent tax returns after the IRS canceled its electronic filing number and after Jessica L. Hills was detained on federal charges.  In total, Direct Tax filed returns claiming over $4 million in tax refunds.

Jessica L. Hills, 30, of Atlanta, Georgia, was sentenced by U.S. District Judge Steve C. Jones to 12 years in federal prison, followed by three years supervised release, and ordered pay restitution in the amount of $954,756.00 to the IRS and $62,528.00 to Georgia Department of Revenue.  Jessica L. Hills was convicted on these charges on August 25, 2015, after she pleaded guilty.  

Kiisha Hills, 26, of Atlanta, Georgia, was also sentenced by U.S. District Judge Steve C. Jones to four years and three months in federal prison, followed by three years supervised release, and ordered to pay $346,850.00 in restitution to the IRS, and $9,248 to the Georgia Department of Revenue.  Kiisha Hills was convicted on these charges on September 14, 2015, after she pleaded guilty.

This case was investigated by the Internal Revenue Service Criminal Investigation, Georgia Department of Revenue, Social Security Administration, and U.S. Secret Service.

Special Assistant United States Attorney Diane C. Schulman and 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 U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA – Eight members of a traveling robbery crew—based out of Detroit, Michigan, and linked to jewelry store robberies in several states—have been sentenced to federal prison for their roles in the June 2013 smash-and-grab robbery of the Mayors Jewelry Store in Lenox Square Mall, in Atlanta, Georgia.

“These defendants traveled the country searching for the most expensive jewelry stores to rob,” said U. S. Attorney John Horn.  “They used sledgehammers during business hours to terrify store employees, smash open display cases, and steal jewelry to sell on the black market.  The arrest and conviction of this crew has prevented an untold number of additional smash-and-grab robberies of jewelry stores on the eastern half of the United States.”

“The FBI is pleased to now have this violent and prolific robbery crew off of our streets. Their violent tactics during these robberies, to include the 2013 robbery at a Lenox Mall based jewelry store in Atlanta, illustrated a complete disregard for the safety of the public. We are appreciative of the hard work and dedication of the many investigators and prosecutors who stayed the course of this extensive and lengthy investigation,” 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 robbery crew consisted of eight individuals, all from Detroit, and each of whom has been convicted and sentenced to federal prison time:  Damien Gayles, Kamauri Kennedy, Corey Burrows, Allen Adams, Lorenzo Terry, Anthony Hill, Jason Arnold, and Jasmine Dozier.  The crew was led by Kenneth Thomas, now deceased.  Several members of the crew are linked to similar jewelry store robberies in Michigan, Virginia, Florida, and elsewhere.

In June 2013, the robbery crew planned to travel from Detroit to Atlanta specifically to commit a “smash-and-grab” style robbery, using sledgehammers, of the Mayors Jewelry Store, in Atlanta, Georgia.  Mayors, a high-end retail chain based in Florida, has locations in several states that offer a wide selection of Rolex watches.  The robbers’ plan was to steal the watches and return to Detroit, where they could be sold to “fences,” or dishonest jewelry dealers via unreported cash transactions.  The fences would then sell the stolen merchandise on the black market, including to buyers overseas.

Thomas, Gayles, Kennedy, and Dozier planned the robbery mission, identified the location to be robbed, conducted surveillance of the store prior to the robbery, and acquired the hammers, vehicles, and other materials needed to commit the crime.   Terry, Hill, Burrows, Adams, and Arnold were recruited by the planners to actually commit the smash-and-grab robbery.  Burrows and Adams were selected to wield the sledgehammers, due to their larger physical size.  Terry, Hill, and Arnold were selected to grab the watches after Burrows and Adams bashed open the display cases.

On June 21, 2013, Burrows, Adams, Terry, Hill, and Arnold entered the Mayors Jewelry Store, in Lenox Square Mall, during business hours in order to rob it.  Burrows and Adams concealed sledgehammers in their pants, and then used the sledgehammers to smash open the store’s glass display cases.  Hill, Terry, Adams, and Arnold grabbed and stole approximately 19 Rolex watches from the smashed display cases, valued between $25,000 and $65,000 each, and fled the store with the stolen merchandise.  The total retail value of the stolen property was approximately $637,600.  Kennedy and Dozier served as getaway drivers afterwards.  Gayles and Thomas took control of most of the stolen watches and paid their co-conspirators for their efforts.  They then sold several of the watches to fences in Detroit.

Using a variety of investigative means, FBI eventually identified the perpetrators of the robbery, who were also suspects in other similar robberies that had occurred throughout the country.  In July 2013, Thomas and several other members of the robbery crew were stopped just outside a high-end mall in Aventura, Florida, as they approached that mall in order to commit another smash-and-grab robbery of a jewelry store.  Thomas was placed under arrest.  FBI’s efforts subsequently led to several indictments and the conviction of these eight defendants.

The following five defendants pleaded guilty to interfering with commerce by robbery, and/or conspiring to interfere with commerce by robbery, and were sentenced by U.S. District Judge Thomas W. Thrash as follows:

• Corey Burrows, 27, was sentenced on September 3, 2015, to four years, three months in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $276,465.Burrows was convicted of these charges on May 26, 2015.
• Jasmine Dozier, 26, was sentenced on May 6, 2015, to two years, three months in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $276,465.Dozier was convicted of these charges on February 27, 2015.
• Damien Gayles, 25, was sentenced was sentenced on March 2, 2015, to seven years, eight months in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $276,465.Gayles was convicted of these charges on October 10, 2014.
• Allen Adams, 28, was sentenced on November 10, 2014, to four years, three months in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $276,465.Adams was convicted of these charges on August 22, 2014.
• Kamauri Kennedy, 26, was sentenced on September 9, 2014, to five years, ten months in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $276,465.  Kennedy was convicted of these charges on June 17, 2014.

The following three defendants pleaded guilty to interfering with commerce by robbery, and/or conspiring to interfere with commerce by robbery, and were sentenced by U.S. District Judges in the Eastern District of Michigan, as follows:

• Lorenzo Terry, 22, was sentenced on December 9, 2015, to four years in prison, by Judge David Lawson, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $276,465.Terry was convicted of these charges on August 5, 2015.
• Anthony Hill, 26, was sentenced on August 25, 2015, to four years, nine months in prison, by Chief Judge Gerald E. Rosen, to be followed by two years of supervised release, and ordered to pay restitution in the amount of $276,465.Hill was convicted of these charges on May 19, 2015.
• Jason Arnold, 21, was sentenced on May 20, 2015, to three years in prison, by Chief Judge Gerald E. Rosen, to be followed by two years of supervised release, and ordered to pay restitution in the amount of $276,465.Arnold was convicted of these charges on November 14, 2014.

This case was investigated by Special Agent Paul Szabo and Task Force Officer William Kimball Murdock of the Federal Bureau of Investigation, with assistance from the Atlanta Police Department.

Assistant United States Attorneys John S. Ghose and Brent Alan Gray 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.

A former U.S. State Department employee pleaded guilty today to 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 indicted by a grand jury in the U.S. District Court for the Northern District of Georgia on Aug. 18, 2015, with nine counts of cyberstalking, seven counts of computer hacking to extort and one count of wire fraud.  The names of the victims are being withheld from the public to protect their privacy. 

Ford pleaded guilty to all charges and admitted that between January 2013 and May 2015, he used various aliases that included “David Anderson” and “John Parsons” and engaged in 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.

Ford posed as a member of the fictitious “account deletion team” for a well-known e-mail service provider and sent 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 then hacked into hundreds of e-mail and social media accounts using the passwords collected from his phishing scheme, where he searched for sexually explicit photographs.  Once Ford located such photos, he then searched for personal identifying information (PII) about his victims, including their home and work addresses, school and employment information, and names and contact information of family members, among other things.

Ford then used the stolen photos and PII to engage in an ongoing cyberstalking campaign designed to demand additional sexually explicit material and personal information.  Ford e-mailed his victims with their stolen photos attached and threatened to release those photos if they did not cede to his demands.  Ford repeatedly demanded that victims take sexually explicit videos of “sexy girls” undressing in changing rooms at pools, gyms and clothing stores, and then send the videos to him.

When the victims refused to comply, threatened to go to the police or begged Ford to leave them alone, Ford responded with additional threats.  For example, Ford wrote in one e-mail “don’t worry, it’s not like I know where you live,” then sent another e-mail to the same victim with her home address and threatened to post her photographs to an “escort/hooker website” along with her phone number and home address.  Ford later described the victim’s home to her, stating “I like your red fire escape ladder, easy to climb.”  Ford followed through with his threats on several occasions, sending his victims’ sexually explicit photographs to family members and friends. 

Ultimately, Ford sent thousands of fraudulent “phishing” email messages to potential victims, successfully hacked into at least 450 online accounts belonging to at least 200 victims, and forwarded to himself at least 1,300 stolen email messages containing thousands of sexually explicit photographs.  Ford sent threatening and “sextortionate” online communications to at least 75 victims. 

During the relevant time period, Ford was employed by the U.S. Embassy in London.  The majority of Ford’s phishing, hacking and cyberstalking activities were conducted from his computer at the U.S. Embassy. 

“With nothing more than a computer and a few keystrokes, modern predators like Michael Ford can victimize hundreds of people around the world,” said Assistant Attorney General Caldwell.  “While this criminal prosecution may never return the victims’ sense of security, I hope that today’s guilty plea brings them some peace of mind.”

“Ford engaged in an international sextortion campaign,” said U.S. Attorney Horn.  “He tormented numerous women by threatening to humiliate them unless they provided him with sexually explicit photos and videos, and in some cases, he followed through on his threats.  This case demonstrates the need to be careful in safeguarding personal information and passwords, especially in response to suspicious e-mails.”

“When a public servant in a position of trust commits any form of misconduct, to include federal crimes such as cyberstalking and computer hacking, we vigorously investigate such claims,” said Director Miller.  “The Diplomatic Security Service is firmly committed to investigating and working with the Department of Justice, U.S. Attorney’s Office and our other law enforcement partners to investigate criminal allegations and bring those who commit these crimes to justice.”

“The allegations contained in this federal indictment portray an individual consumed with sexually themed cyber-stalking and exploitation as well as an individual who felt he was beyond detection and grasp of authorities,” said Special Agent in Charge Johnson.  “The FBI is proud of the role it played in working with our law enforcement partners to bring Mr. Ford in for prosecution.”

U.S. District Judge Eleanor L. Ross of the Northern District of Georgia scheduled Ford’s sentencing hearing for Feb. 16, 2016. 

The Diplomatic Security Service and the FBI are investigating 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 are prosecuting the case.  The Criminal Division’s Office of International Affairs and the U.S. Embassy in London provided assistance in this case.  

ATLANTA – Michael C. Ford, a former U.S. State Department employee, has pleaded guilty to perpetrating a widespread, international e-mail phishing, computer hacking, and cyberstalking scheme against hundreds of women in the United States and abroad. Using e-mail passwords obtained by phishing, he hacked into hundreds of victims’ e-mail and social media accounts, stole thousands of sexually explicit photographs, and threatened at least 75 victims that he would release their photos and other personal information unless they agreed to his “sextortionate” demands.

“Ford engaged in an international sextortion campaign,” said U.S. Attorney John Horn.  “He tormented numerous women by threatening to humiliate them unless they provided him with sexually explicit photos and videos, and in some cases, he followed through on his threats.  This case demonstrates the need to be careful in safeguarding personal information and passwords, especially in response to suspicious e-mails.”

“With nothing more than a computer and a few keystrokes, modern predators like Michael Ford can victimize hundreds of people around the world,” said Assistant Attorney General Caldwell.  “While this criminal prosecution may never return the victims’ sense of security, I hope that today’s guilty plea brings them some peace of mind.”

“The allegations contained in this federal indictment portray an individual consumed with sexually themed cyber-stalking and exploitation as well as an individual who felt he was beyond detection and grasp of authorities. The FBI is proud of the role it played in working with our law enforcement partners to bring Mr. Ford in for prosecution,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.

“When a public servant in a position of trust commits any form of misconduct, to include federal crimes such as cyberstalking and computer hacking, we vigorously investigate such claims,” said Director Miller.  “The Diplomatic Security Service is firmly committed to investigating and working with the Department of Justice, U.S. Attorney’s Office and our other law enforcement partners to investigate criminal allegations and bring those who commit these crimes to justice.”

According to U.S. Attorney Horn, the charges and other information presented in court: From January 2013 and May 2015, he used various aliases that included “David Anderson” and “John Parsons” and engaged in 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.

Ford posed as a member of the fictitious “account deletion team” for a well-known e-mail service provider and sent 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 then hacked into hundreds of e-mail and social media accounts using the passwords collected from his phishing scheme, where he searched for sexually explicit photographs.  Once Ford located the photos, he then searched for personal identifying information (PII) about his victims, including their home and work addresses, school and employment information, and names and contact information of family members, among other things.

Ford then used the stolen photos and PII to engage in an ongoing cyberstalking campaign designed to demand additional sexually explicit material and personal information.  Ford e-mailed his victims with their stolen photos attached and threatened to release those photos if they did not cede to his demands.  Ford repeatedly demanded that victims take sexually explicit videos of “sexy girls” undressing in changing rooms at pools, gyms and clothing stores, and then send the videos to him.

When the victims refused to comply, threatened to go to the police or begged Ford to leave them alone, Ford responded with additional threats.  For example, Ford wrote in one e-mail “don’t worry, it’s not like I know where you live,” then sent another e-mail to the same victim with her home address and threatened to post her photographs to an “escort/hooker website” along with her phone number and home address.  Ford later described the victim’s home to her, stating “I like your red fire escape ladder, easy to climb.”  Ford followed through with his threats on several occasions, sending his victims’ sexually explicit photographs to family members and friends. 

Ultimately, Ford sent thousands of fraudulent “phishing” email messages to potential victims, successfully hacked into at least 450 online accounts belonging to at least 200 victims, and forwarded to himself at least 1,300 stolen email messages containing thousands of sexually explicit photographs.  Ford sent threatening and “sextortionate” online communications to at least 75 victims. 

During the relevant time period, Ford was employed by the U.S. Embassy in London.  The majority of Ford’s phishing, hacking and cyberstalking activities were conducted from his computer at the U.S. Embassy. 

Ford was initially charged by criminal complaint and arrested on May 17, 2015 at the Hartsfield-Jackson International Airport in Atlanta, Georgia. 

Sentencing for Michael C. Ford, 36, of Atlanta, Georgia, is scheduled for February 16, 2016, before U.S. District Judge Eleanor L. Ross.

The case is being investigated by the U.S. Department of State, Diplomatic Security Service and the Federal Bureau of Investigation.

The case is being 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.  Assistance was provided by the Criminal Division’s Office of International Affairs and the U.S. Embassy in London.  

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 – U.S. Attorney John A. Horn announced today that the Northern District of Georgia collected $255,099,419 in criminal and civil actions in Fiscal Year 2015.  Of this amount, $12,171,472 was collected in criminal actions and $242,927,947 was collected in civil actions. 

Additionally, the Northern District of Georgia worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $498,040,851 in cases pursued jointly with these offices.   Of this amount, $12,708 was collected in criminal actions and $498,028,143 was collected in civil actions.   The U.S. Attorney’s Office for the Northern District of Georgia ranks seventh among districts in the country for collections for which it was directly responsible and sixth in the country for overall collections-both direct and shared.     

Attorney General Loretta E. Lynch announced on December 3, 2015, that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2015.  Collections in FY 2015 represent more than seven and a half times the approximately $2.93 billion of the Justice Department’s combined appropriations for the 94 U.S. Attorneys’ offices and the main litigating divisions in that same period. 

“The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources, and protecting the American people from exploitation and abuse,” said Attorney General Loretta Lynch.  “The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver.  I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”

“As reflected in this year’s collection figures, financial enforcement is an integral part of our office’s efforts to combat fraud and other crimes from every angle,” said U. S. Attorney John Horn.  “With the help of partner agencies, we continue to root out efforts to cheat the public and the government and to hold the perpetrators financially accountable.”

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

The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws.  For example, over $212 million dollars was recovered by the U.S. Attorney’s Office in a settlement with First Tennessee Bank, N.A. to resolve allegations that it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s Federal Housing Administration that did not meet applicable requirements.  In addition, civil debts were collected on behalf of other federal agencies, including the Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.

One of the largest criminal collections for FY2015 was recovered in United States v. Rupert Morgan for theft of government funds from the Social Security Administration and Veterans Administration.  Over $213,000 was recovered in the case through garnishment of the defendant’s investment accounts.   The United States also recovered over $127,000 for DeKalb County and the World Congress Center in United States v. Cecil Clark, a case involving conspiracy to commit bribery.

Additionally, the Asset Forfeiture section of the U.S. Attorney’s Office, working with partner agencies and divisions, collected $16,979,004.00 in forfeited funds and restored to victims $1,362,679 in FY 2015.  Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.

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

ATLANTA – Alwin Peterson, Jr. and three co-conspirators were sentenced late Tuesday for a bank fraud scheme that targeted over 150 Bank of America accounts and involved over $4 million in fraudulent withdrawals.

 “Their criminal actions damaged not only the small businesses they targeted, but also the employees and vendors who depended on timely payments to meet their day-to-day needs,” said U.S. Attorney John Horn.  “This case reminds business owners that they need to be vigilant in protecting sensitive personal and bank account information.”

“The U.S. Secret Service and our law enforcement partners work tirelessly to protect consumers and businesses against bank fraud schemes such as this,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.  “These sentences are a testament to that collaborative effort.”

According to U.S. Attorney Horn, the charges and other information presented in court:  From approximately November 2012 through his arrest in August 2014, Peterson led a bank fraud scheme that targeted over 150 corporate accounts at Bank of America.  Peterson first collected personal information about the individuals listed on the accounts, many of which belonged to small businesses.  Using that information, he then called Bank of America’s customer service and impersonated the true account holders.  In those calls, Peterson obtained additional account information, monitored account balances, and learned about the latest transactions on existing accounts.  Peterson also changed the online banking passwords for some of the accounts so that he could access the accounts by computer. 

After fraudulently acquiring the account information, Peterson employed a group of “runners” to enter bank branches and withdraw money from the accounts.  Using fake identifications, the runners posed as the true account holders and wired money from the victims’ accounts to other accounts Peterson opened.  Peterson also used counterfeit checks to steal money from the accounts.  Co-defendants Vivienne Bloch, Kori Henegar, and Allen Parham were all runners in the scheme.  The defendants traveled to numerous bank branches in different states throughout the country in an attempt to evade detection.  Peterson is responsible for over $4 million in fraudulent withdrawals from the targeted accounts.

All of the defendants were convicted of bank fraud conspiracy after pleading guilty, and were sentenced by United States District Judge Steve C. Jones as follows:

• Alwin Peterson, Jr., 38, of Fayetteville, Ga., was sentenced to 12 years, 1 month in prison to be followed by 5 years of supervised release, and ordered to pay $1,019,381.40 in restitution.
• Parham, 46, of Atlanta, Ga., was sentenced to 6 years, 6 months in prison to be followed by 5 years of supervised release, and ordered to pay $85,414.11 in restitution.
• Bloch, 54, of Decatur, Ga., was sentenced to 5 years in prison to be followed by 5 years of supervised release, and ordered to pay $538,383.50 in restitution.
• Henegar, 35, of Spring, Texas was sentenced to 2 years, 9 months in prison to be followed by 5 years of supervised release, and ordered to pay $395,583.87 in restitution.

This case was investigated by Special Agents with the United States Secret Service.  Bank of America fraud investigators provided valuable assistance throughout the investigation.

Assistant United States Attorneys Stephen H. McClain and 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 U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

 

ATLANTA - Jemel Broussard Harris has been indicted by a federal grand jury on charges of assaulting and injuring a Customs and Border Protection officer while at Hartsfield-Jackson International Airport.

“Tragic events across the world remind us that security at airport inspection areas is critical, and customs officers need to fulfill this mission without attacks and assaults as alleged in this case,” said U.S. Attorney John Horn.  “These kinds of disruptions create safety issues for both the officers and other travelers.”

“This assault illustrates the inherent danger that law enforcement officers face every day while helping to keep our communities safe,” said Stephen Kremer, CBP Port Director for the Port of Atlanta. “The safety and security of our officers and of our travelers remains of paramount concern for Customs and Border Protection.”

According to United States Attorney Horn, the charges, and other information presented in court: Harris returned to the United States from the Dominican Republic on November 15, 2015. He allegedly became verbally abusive as he passed through the Customs inspection area of Hartsfield-Jackson International Airport. When Customs and Border Protection officers (CBP) told Harris that he could collect his belongings and go home, he continued his profane tirade, and threw a can of deodorant at a CBP officer. When an officer approached Harris and asked him to collect his belongings and go home, Harris surprised the officer by striking him. In the struggle that ensued, Harris allegedly pulled the officer across an inspection platform before he was subdued and arrested. The officer who Harris struck suffered a cut on his head and suffered other bodily injuries.

The grand jury issued the single-count indictment charging Jemel Broussard Harris, 38, of Newnan, Ga., on Monday, November 23, 2015.

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

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

Assistant United States Attorney William Traynor 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 – Ladarious Gibbs, Derek C. Turner, Andre Clark, Brandon Washington, and Raphael Banks have been sentenced to federal prison for a series of violent armed carjackings in the Atlanta area.

“The defendants’ crimes were alarmingly violent,” said U.S. Attorney John A. Horn.  “These young men preyed upon the citizens of our community.  A carjacking is a jarring event alone, but a string of them instills fear and unease throughout the entire community.  We hope the long sentences here restore a sense of safety and send a message to anyone who might think of committing this type of crime.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated, “These individuals, through their unified criminal acts, were responsible for a significant violent crime spike in and around the City of Atlanta.  It is cases such as this that really do require the combined efforts and resources of law enforcement working together and across jurisdictional boundaries to get these violent offenders off of our streets and into prison.”

“These violent repeat offenders, who are responsible for many crimes throughout the Metro Atlanta, will now be held responsible for their heinous actions,” said Atlanta Police Chief George Turner. “Our partnership efforts with the FBI as well as Cobb, Gwinnett, DeKalb and Cobb Counties and other law enforcement agencies prove that joint efforts lead to successful outcomes.”

According to United States Attorney Horn, the charges and other information presented in court: Between December 29, 2012, and January 18, 2013, the defendants committed at least seven carjackings in Fulton, Gwinnett, Cobb, and DeKalb Counties.  During several of the robberies, the defendants pointed guns at the victims and threatened to kill them. The defendants then robbed victims of their cars, personal belongings, cash and cellular telephones. One of the victims was a pregnant woman who suffered pre-term labor as a result of her carjacking and had to be hospitalized.  One of the defendants was apprehended following a 100-mile-per-hour chase through downtown Atlanta that endangered dozens of innocent people.

A federal grand jury indicted the defendants on May 20, 2014.  Gibbs, Turner, Clark, and Washington pleaded guilty to carjacking and possession of a firearm in furtherance of a crime of violence.  Banks pleaded guilty to being an accessory to the crimes.  The men received the following sentences:

• Ladarious Gibbs, a/k/a, “Lil D,” 24, of Atlanta, Georgia was sentenced to 30 years in prison, to be followed by five years of supervised release.He was ordered to pay restitution in the amount of $29,080.68.

• Derek C.Turner, a/k/a, “Snoop,” 22, of Atlanta, Georgia, was sentenced to 27 years in prison, to be followed by five years of supervised release.He was ordered to pay restitution in the amount of $29,080.68.

• Andre Clark, a/k/a, “Yammy,” 23, of Atlanta, Georgia, was sentenced to 10 years and one month in prison, to be followed by five years of supervised release.He was ordered to pay restitution in the amount of $1428.

• Brandon Washington, a/k/a, “Lil B,” 21, of Atlanta, Georgia, was sentenced to nine years and nine months in prison, to be followed by five years of supervised release.

• Raphael Banks, 26, of Atlanta, Georgia, was sentenced to four years and nine months in prison, to be followed by three years of supervised release.He was ordered to pay restitution in the amount of $500.

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

Assistant United States Attorneys Stephanie Gabay-Smith and Ryan K. Buchanan 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 - Maksim Mikhaiov Pikulev was sentenced to seven months in prison after pleading guilty to falsely reporting a plot to obtain bombs that would be detonated at a local Wal-Mart and threatening an FBI Special Agent.

“Law enforcement officers who serve and protect the citizens of this district should not be subjected to threats of violence,” said U.S. Attorney John Horn.  “Not only did Pikulev report a false bomb threat, which diverted critical law enforcement resources, but after the FBI agent investigating the matter discovered his claim was a hoax, Pikulev threatened to kill the agent.”

J. Britt Johnson, Special Agent in Charge,  FBI Atlanta Field Office, stated: “Today’s sentencing in federal court should make it very clear to Mr. Pikulev that the U.S. Government takes bomb threats and threats to its federal agents very seriously.  It is hoped that Mr. Pikulev will use his time in prison to reflect on his poor decisions that led to his criminal acts.”

According to United States Attorney Horn, the charges and other information presented in court: On October 17, 2014, Pikulev called Atlanta’s FBI office and falsely reported that two men asked him to build a bomb to blow up a local Wal-Mart.  During the investigation, Pikulev stated that he planned to deliver two bombs in his possession to the unknown males and to record the transaction for the FBI.  But when an FBI Agent requested to see the bombs, Pikulev refused.  The FBI eventually determined that the matter was a hoax. 

On December 7, 2014, Pikulev placed a call to the FBI office located in Washington DC.  During that recorded call, Pikulev said that he wanted to make a complaint against FBI-Atlanta agents.  Pikulev became agitated and angry during the call after he was told to call the Atlanta Division to make his complaint.  Pikulev refused to call the FBI Atlanta office and threatened to kill the FBI agent who investigated his bomb hoax.    

Pikulev, a/k/a Max, 30, of Lilburn, Ga., has been sentenced to seven months in prison to be followed by three years of supervised release.   Pikulev was convicted on these charges on August 14, 2015, after he pleaded guilty.

This case was investigated by the Federal Bureau of Investigation.

Assistant United States Attorney Tracia  M. King 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 - Frazier Todd, Jr., Roberta Sheffield, and Cozzie Walker, have been arraigned on federal charges of conspiring to defraud their clients and the IRS by intentionally misrepresenting to the IRS that those clients incurred qualified education-related expenses and were entitled to receive a refundable tax credit.

“One of the ways the federal government encourages people to enroll in and complete their college education is by offering a refundable tax credit for certain expenses students incur, such as for tuition and books,” said U.S. Attorney John Horn. “These defendants allegedly exploited that tax credit by convincing thousands of clients—who were often elderly, disabled, unemployed, and low-income—that the refund was a “stimulus” program they were entitled to receive.  The defendants knew that their clients had no qualified education expenses and were not eligible for the refund.”

“IRS Special Agents work year round to investigate and root out dishonest return preparers,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation.  “These defendants clearly took advantage of the people in their community as well as other unsuspecting Americans. The indictment of these individuals helps reassure our communities that return preparers who lack integrity and engage in illegal activities will be held accountable for their actions.”

According to U.S. Attorney Horn, the indictment, and other information presented in court: Walker, Sheffield, and Todd, Jr. were principals of Diverse Resources Business and Tax Firm, a Union City tax preparer business, and People Helping the Community, Inc., a fraudulent non-profit organization. Acting through these entities, the defendants operated a scheme to exploit the American Opportunity Tax Credit (“AOTC”), a refundable tax credit for qualified postsecondary education expenses such as tuition and related costs. Students for whom the AOTC is claimed must be enrolled at least part-time in a degree- or certificate-seeking program at an eligible institution, and they must incur actual education-related expenses. Students can qualify for up to a $1,000 refund, even if they are not otherwise required to file taxes.  

The defendants marketed the AOTC as a “stimulus” available to almost anyone, regardless of whether that person incurred education expenses or was even enrolled in school. Some clients did not even know the defendants were filing a tax return on their behalf. To make the scheme appear legitimate, the defendants manufactured a phony curriculum of short videos on topics such as healthy eating, exercise for seniors, and street safety, which they sent to clients after already claiming the AOTC. Even if the clients had paid tuition for these so-called “life enrichment courses,”—which they did not—the defendants knew these courses would not qualify their clients for the AOTC.

The defendants filed tax returns claiming the maximum AOTC refund for every client, representing to the IRS that each client had incurred several thousand dollars in qualified education expenses. Many of the tax returns were fraudulent in other ways too, such as claiming bogus income and business losses. The government estimates that the defendants’ conduct generated over $3.5 million in fraudulent refunds, some of which went to the clients and some of which the defendants retained for themselves. The majority of the defendants’ clients lived in the Atlanta, Georgia and Charlotte, North Carolina areas.

Frazier Todd, Jr., 57, Roberta Sheffield, 42, and Cozzie Walker, 41, all of Atlanta, Ga., are charged with conspiracy to commit wire and mail fraud and fourteen counts of aiding and abetting each other in presenting false and fraudulent claims for payment to the federal government. They were arraigned today before United States Magistrate Judge Russell G. Vineyard, after they were indicted by a federal grand jury on November 9, 2015.

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.

Anyone who has information concerning the allegations described in the indictment is encouraged to contact IRS-Criminal Investigation at 404-338-7519.

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

Assistant United States Attorney Lynsey M. Barron 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 – Three individuals were charged in an indictment unsealed today with an international scheme to hack into E*TRADE Financial Services Corporation and Scottrade Financial Services, Inc. to steal sensitive personal identifying information from millions of customers and build their own securities brokerage using the companies’ proprietary databases.

“The massive scale of these data breaches is staggering. But the methods and goals of this scheme are all too familiar and highlight the critical threat that cyber-crime poses to our nation’s economic security,” said U.S. Attorney John Horn. “The indictment alleges that the defendants launched sophisticated cyber-attacks against financial institutions and stole personal identifying information of millions of customers. The charges announced today send a clear message that international borders will not impede our efforts to prosecute cyber-criminals who seek to breach our computer networks.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated, “This investigation, and the charges announced today, clearly illustrates that the FBI and its partners will not tolerate attacks of any kind on our nation’s financial infrastructure, and will continue to pursue those responsible as part of our collective effort to protect our citizens’ personal information. While corporations that hold our citizens’ data continue to be the targets of the evolving cyber threat, they are also the key to defeating it. This investigation is a prime example of how collaborative efforts between the public and private sector lead to tangible results in the fight against digital crimes.”

According to the indictment unsealed today: Between November 2012 and August 2014, Gery Shalon, a/k/a/ Garri Shalelashvili, Joshua Samuel Aaron, and an unidentified third hacker conspired to hack into the computer networks of financial institutions and media companies to steal customer data. In online chats, Shalon and the hacker discussed their plan to use the stolen customer contact information to build their own brokerage database for marketing stocks to potential investors, boasted about their early success in “cold-calling” investors, and expressed hope that a bank would pay to acquire their database.

The indictment alleges that Shalon directed the hacker to breach companies with large customer databases of investors, including E*TRADE and Scottrade, and the hacker infiltrated their networks using sophisticated hacking techniques. In late November 2013 and early December 2013, the hacker breached Scottrade’s network and E*TRADE’s network using overseas servers provided by Shalon. After gaining a foothold in both networks, the hacker asked Shalon for the login credentials of a customer account at both companies in order to locate their customer databases. In response, Aaron provided Shalon with login credentials that Aaron wrongfully obtained from a United States victim, including the victim’s username and password, and Shalon sent the information to the hacker.

The indictment alleges that, using the victim’s login credentials, the hacker located E*TRADE’s and Scottrade’s customer databases. Shalon and the hacker discussed the personal identifying information information visible in the databases, and at Shalon’s direction, the hacker exported stolen customer data, including names, residential addresses, phone numbers, and email addresses, to an overseas server provided by Shalon.

In total, the defendants compromised customer databases containing the personal information of more than 10 million customers of E*TRADE and Scottrade alone.

A federal grand jury in Atlanta, Ga., returned a 10-count sealed indictment against Shalon, Aaron, and the third hacker on October 27, 2015.  The indictment was unsealed today.  The indictment charges them with one count of conspiracy to commit wire fraud, three counts of wire fraud, one count of conspiracy to commit computer fraud, two counts of computer fraud, and three counts of aggravated identity theft. Shalon, 31, a resident of Israel, was arrested by Israeli law enforcement in Savyon, Israel on July 21, 2015, and remains in custody in Israel, where extradition proceedings are pending. Aaron, 31, a United States citizen and resident of Israel, is not in custody.

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

This case is being investigated by the Federal Bureau of Investigation with valuable assistance provided by the New York Field Office of the United States Secret Service. E*TRADE and Scottrade cooperated fully in the investigation. Foreign law enforcement partners also made significant contributions to the investigation, including the exceptional support and cooperation provided by the National Cyber Unit of the Israel Police. Valuable assistance also was provided by the Criminal Division’s Office of International Affairs and the U.S. Attorney’s Office for the Southern District of New York.

Assistant United States Attorney Nathan P. Kitchens 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 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 - Leonard Nathaniel Peragine, Jr., has been arraigned on federal charges of using the internet to entice a child for sexual activity, and distributing and possessing child pornography.  Peragine was indicted by a federal grand jury on October 27, 2015. 

“Peragine is accused of shopping online for sex with children,” said U.S. Attorney John Horn.  “Such conduct is as dehumanizing as it is dangerous.  Predators may feel safe in the anonymity of the internet, but this case shows that we will find these predators and bring them to justice.”

“The FBI Violent Crimes Against Children program continues to target and present for prosecution individuals such as Mr. Peragine who, as alleged in the federal indictment, would sexually exploit our nation's children.  The FBI asks that anyone with information regarding child exploitation 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:  The defendant, Leonard Nathaniel Peragine, Jr., responded to a classified advertisement that was posted online that purported to offer sexual access to a child.  The ad was posted by an undercover agent as part of an FBI investigation.  While communicating with the undercover agent to arrange to have sex with the child, said to be a 9-year-old girl, Peragine sent child pornography videos to the undercover agent that depicted adult men committing sex acts on prepubescent children.  Peragine sent the videos via messenger application in order to have the agent show the videos to the child to persuade her to have sex with the defendant. 

Peragine later spoke with who he thought was the child and asked the child whether she had seen the videos, and whether she wanted to try those activities with him.  After the child said she might be interested, Peragine arranged to meet the undercover agent and the child on September 29, 2015, at a location in Suwanee, Georgia.  When Peragine showed up for the meeting, he was arrested and searched.  Condoms were found in his car, and additional child pornography was located on his cell phone.

Leonard Nathaniel Peragine, Jr., 32, of Lawrenceville, Georgia, 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 John S. Ghose is prosecuting 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 – Paulette Shorter and Lakisha Grimes have been sentenced to federal prison for stealing personal identifying information from fellow employees of The Home Depot, Inc. in order to submit fraudulent applications for credit cards.

“The defendants stole the very personal information they were entrusted to protect,” said U.S. Attorney John Horn. “They applied for fraudulent credit cards with personal identifying information taken from The Home Depot’s human resources database. Grimes and Shorter violated the trust of their employer and their fellow employees, and they did so to enrich themselves at the expenses of others.”

“The U.S. Secret Service and our law enforcement partners work tirelessly to protect consumers against identity theft fraud,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.  “These sentences should serve as a reminder that criminals will not get away with maliciously using their entrusted positions for personal gain.”

According to United States Attorney Horn, the charges, and other information presented in court: Paulette Shorter and Lakisha Grimes worked as Human Resources employees in the Atlanta, Georgia headquarters of the Home Depot, Inc., where they had access to employee databases containing employee names, Social Security numbers, and birth dates. The defendants used personal identifying information stolen from the Home Depot employee database and other sources to apply online for Capital One credit cards in the names of different individuals, including Home Depot employees and job applicants. Home Depot Corporate Security discovered the fraudulent scheme based on a tip from a Home Depot employee and reported the identity theft to federal investigators.

In total, thirty-two fraudulent Capital One credit card applications were submitted as part of the scheme using stolen personal identifying information, and two of the approved credit cards were mailed to Shorter’s and Grimes’s residences. Two of Shorter’s relatives used a credit card issued in the fraudulent scheme to purchase merchandise at several outlet stores.

Paulette Shorter, 32, of Orlando, Florida was sentenced on November 4, 2015, by United States District Court Judge Steve C. Jones to two years and one day in prison to be followed by three years of supervised release, and she was ordered to pay $166.90 in restitution to Capital One. Shorter was convicted on this charge on July 30, 2015, after she pleaded guilty.

Lakisha Grimes, 38, of Conyers, Georgia was sentenced on January 16, 2015, by United States District Court Judge Steve C. Jones to two years in prison to be followed by one year of supervised release. Shorter was convicted on this charge on November 3, 2014, after she pleaded guilty.

This case is being investigated by the United States Secret Service.

Assistant United States Attorney Nathan P. Kitchens 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 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 - Jalita Jenera Johnson has been sentenced for lying when she bought a gun and 50-round drum magazine for her convicted felon boyfriend, Marcus Wheeler. Wheeler later used the gun and magazine to kill an Omaha, Nebraska, police officer while the officer was attempting to serve a warrant on Wheeler for his arrest.

“The tragic result in this case is a stark reminder of how firearm purchasing laws are designed to protect the public,” said U.S. Attorney John Horn. “Ms. Johnson’s case shows that if you buy a gun for someone else and lie about it, you never know where that gun will end up or what it will be used for. Illegally bought guns not only pose a risk to our community, but any other community where the gun is ultimately taken.”

“This sentence serves as a reminder to all law enforcement that we need to remain vigilant in curtailing the illegal trafficking of firearms in order to protect the safety of innocent civilians,” said ATF Special Agent in Charge Carl Walker.

According to U.S. Attorney Horn, the charges and other information presented in court: In April 2015, Jalita Jenera Johnson bought a Glock semiautomatic firearm, a 50‑round drum magazine, and ammunition from a pawnshop in Jonesboro, Georgia. When Johnson bought the firearm, she was required to fill out a Bureau of Alcohol, Tobacco, Firearms and Explosives Form 4473. That form requires the purchaser of the firearm to disclose the identity of the true buyer or transferee of the firearm. Johnson stated on the form that she was the true buyer. But in fact, Johnson was buying the firearm for her boyfriend, Marcus Wheeler, who was a convicted felon and so could not buy the gun for himself. Wheeler provided Johnson with the money to buy the gun and magazine. He also directed Johnson on which gun and magazine to buy.

In May 2015, using the gun and magazine that Johnson bought for him, Wheeler got into an armed confrontation with the City of Omaha Police Department in Omaha, Nebraska, during which Wheeler used the Glock firearm to shoot and kill an Omaha Police Officer.  Wheeler also was killed during the shootout. 

Jalita Jenera Johnson, 26, of Jonesboro, Georgia, has been sentenced to one year of probation, 40 hours of community service, and 180 days’ home confinement.  Johnson was convicted on these charges on August 19, 2015, after she pleaded guilty.

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

Assistant United States Attorney Mary L. Webb 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.

ROME, Ga. - Pelaralyss Young has been sentenced to 10 years in federal prison for her role in the December 20, 2012, robbery of the Catoosa Teachers Federal Credit Union, in Ringgold, Georgia.  Young’s co-conspirator, Laron Burns, was sentenced in the Eastern District of Michigan to 18 years in federal prison. 

“Young and Burns targeted a small town credit union at a time when they thought it would be most vulnerable—the Christmas season,” said U.S. Attorney John Horn.  “Armed with air pistols, they jumped a teller counter, broke a teller’s leg, and forced employees and customers into the vault, where they were held for the remainder of the robbery.  We hope the resolution of this case will help restore the victims and citizens of Ringgold to feeling safe, and will deter anyone else from this senseless violence.”

“This was a very violent robbery and the two defendants in the matter are most deserving of the extensive federal prison sentences handed down. While the customer and bank employees turned victims are left to deal with their emotional or even physical trauma, the FBI and its law enforcement partners working this matter hope that these stiff prison sentences provide some solace toward their continued recovery,” 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 December 20, 2012, Pelaralyss Young and Laron Burns, armed with realistic-looking air pistols, and wearing dark clothing, masks, and gloves, entered the Catoosa Teachers Federal Credit Union, in Ringgold, Georgia.  Burns jumped over a teller counter and knocked a female bank employee to the ground, breaking her leg in the process.  She was then forced to crawl at gun point into a room containing the bank’s safe.  Other employees and customers were also forced at gun point into that room, where they were held for the remainder of the robbery. 

The robbery occurred immediately after a cash delivery, and the defendants fled with nearly $170,000.  They also seized and fled with the cell phones of customers in order to prevent any attempts to alert police.

Pelaralyss Young, 27, of Alexandria, Virginia, was sentenced on October 30, 2015, by U.S. District Judge Harold L. Murphy, Northern District of Georgia, to 10 years in prison, to be followed by five years of supervised release.  Young was convicted on these charges on August 13, 2015, after she pleaded guilty without a plea agreement.

Laron Burns, 45, of Flint, Michigan, was sentenced on April 13, 2015, by U.S. District Judge Laurie Michelson, Eastern District of Michigan, to 18 years, 3 months in prison, to be followed by three years of supervised release.  Burns was convicted on these charges on December 17, 2014, after he pleaded guilty pursuant to a negotiated plea agreement that also resolved additional criminal conduct committed in Michigan. 

Both defendants have also been ordered to pay $166,340 in victim restitution.

This case was investigated by the Federal Bureau of Investigation, the Georgia Bureau of Investigation, the Catoosa County Sheriff's Office, and the Ringgold Police Department.

Assistant United States Attorney John S. Ghose 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 were convicted by a federal jury Monday, October 26, 2015, on charges that they conspired to prepare and file false federal tax returns that claimed over $1 million in tax refunds. 

“The actions of these defendants reflected a willful disregard for our tax system,” said U.S. Attorney John Horn.  “Our citizens will not tolerate tax preparers who abuse the system for their own financial gain, and tax cheats will be investigated by the Internal Revenue Service and, where appropriate, criminally prosecuted.” 

“This verdict exemplifies IRS Criminal Investigation’s intense focus on the rigorous pursuit of tax refund fraud,” stated Special Agent in Charge, Veronica F. Hyman-Pillot. “These unscrupulous defendants thought they had devised a clever scheme which preyed on unsuspecting victims and benefited them financially.  Return preparers cannot fraudulently steal public money and enrich their bank accounts at the expense of the United States Treasury and other taxpayers and not expect to go unpunished.”

“The Jenkins’ did a disservice to legitimate tax preparers who comply with Georgia Tax Law. We will continue to find and track others who seek to defraud the taxpayers of our state.” said Lynne Riley, State Revenue Commissioner, Georgia Department of Revenue.

According to U.S. Attorney Horn, the charges, and other information presented in court: Since 2006, brothers Frederick and Willie Jenkins owned and operated Global Tax Service LLC (GTS), a tax preparation business with multiple locations throughout the metropolitan Atlanta area, and in other states, including Alabama.  During the tax years under investigation, 2008 through 2011, the Jenkins brothers prepared and filed false income tax returns for clients.  The false items primarily consisted of fraudulent and fictitious business income and losses in order to inflate tax refunds. 

For some clients, the Defendants made up a business that did not exist, and then falsified business expenses to make it appear that the business had lost money.  For other clients with established businesses, the Defendants fraudulently added false business expenses.  The fraudulent business and business expenses were added by the Defendants without the clients’ knowledge. 

The end result was the same:  The refunds were inflated.  Higher refunds led to more money for the Defendants, who often took a percentage of the refund as their fee.  Subsequently, when clients sought copies of their tax returns, Jenkins provided them with altered copies, or refused to give copies all together.

After a 5-day jury trial, the jury found Frederick Jenkins guilty on 11 counts and Willie Jenkins guilty on 7 counts.  Both were indicted by a federal grand jury on May 20, 2014.

Sentencing for Frederick Jenkins and Willie Jenkins of Fairburn, Georgia, will be scheduled before United States District Judge Orinda D. Evans at a date to be determined. 

This case is being investigated by the Internal Revenue Service Criminal Investigation, and the Georgia Department of Revenue.

Assistant United States Attorneys Bernita B. Malloy and Chris Bly 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 home page for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao/gan/.

ATLANTA – Tammi Stephens, Daynna Gregory, and Richard Cantrell have been sentenced to federal prison for stealing victims’ restitution money from a fund controlled by the Georgia Department of Corrections (GDOC), where Stephens and Gregory formerly worked in its banking department.

“Stephens and Gregory stole from a fund that compensates crime victims, a fund that the two had been entrusted to help administer,” said U.S. Attorney John Horn.  “By printing false checks and delivering them to Cantrell to launder through his business, Stephens and Gregory callously abused that trust, and effectively preyed upon crime victims a second time.”

“This sentencing holds all three defendants fully accountable for their organized criminal scheme to deprive previous crime victims of monies fully due them.  The fact that two of the defendants were State employees abusing their positions of trust made the crimes all the more reprehensible,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.

“We are pleased to see justice served on these individuals for their role in abusing the public’s trust, thanks to the actions by both GDOC’s internal investigations unit and the cooperation of the FBI,” said Homer Bryson, Commissioner of the Georgia Department of Corrections.  “The sentencing of Stephens and Gregory sends a strong message that this type of conduct will not be tolerated,” continued Bryson.

According to U.S. Attorney Horn, the charges and other information presented in court: From September 2013 to June 2014, Stephens and Gregory were employees in the Georgia GDOC banking unit where they were responsible for issuing checks drawn on a restitution fund set up to compensate victims of other crimes.  The defendants formed and carried out a plan to steal victim restitution money by having Stephens and Gregory use their access to the fund to issue fraudulent checks payable to a flower shop owned by Cantrell, who was not a GDOC employee.  The checks were purposely issued to Cantrell's flower shop to hide the defendants’ involvement in the theft. Cantrell agreed to use his business to launder the stolen money. 

After printing the fraudulent checks, Stephens and Gregory altered the Department’s financial records to further disguise their theft.  Stephens and Gregory issued 29 fraudulent checks to the flower shop, which were then delivered to Cantrell, who cashed them and split the proceeds with Stephens and Gregory.  In total, the defendants stole more than $232,426.76 in restitution funds, which they then spent on a variety of retail purchases.

• Tammi Stephens, 37, of Forsyth, Georgia, was sentenced to three years in prison to be followed by three years of supervised release, and ordered to pay restitution of $232,426.76.
• Daynna Gregory, 41, of Lithonia Georgia, was sentenced to two years and nine months in prison to be followed by three years of supervised release, and ordered to pay restitution of $232,426.76.
• Richard Cantrell, 54, of Marietta, Georgia, was sentenced to two years in prison to be followed by three years of supervised release, and ordered to pay restitution of $232,426.76.

This case was investigated by the Federal Bureau of Investigation and the Georgia Department of Corrections.

Assistant U.S. Attorneys Trevor C. Wilmot and Kurt R. Erskine 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 home page for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao/gan/.

ROME, Ga. - Clinton Briggs Miller has been arraigned on federal charges of enticing minors to produce child pornography, by allegedly blackmailing them to send him sexually explicit images of themselves.  Miller was indicted by a federal grand jury on October 19, 2015.

“Enticing, tricking, and intimidating children into taking sexually explicit photographs of themselves with their cell phones is as repulsive as it is illegal,” said U.S. Attorney John Horn.  “This case illustrates the dangers faced by minors who send racy photos of themselves on phones or over social media.”

“As we have seen in countless other cases, child predators will exploit any technology they can to feed their perverse appetites,” said Special Agent in Charge Nick S. Annan, ICE Homeland Security Investigations in Atlanta. “I strongly encourage parents to educate themselves on how to protect their children from these predators by entering the keyword ‘iGuardian’ in the search box at www.ice.gov.”

According to U.S. Attorney Horn, the charges, and other information presented in court: In July 2015, Miller allegedly exchanged text messages with two minor females, one in California and one in Georgia. He befriended them, persuaded them to send him explicit photographs of themselves, and then threatened to post those photographs on social media websites unless they continued to send him increasingly explicit photographs.

Clinton Briggs Miller, 26, of Rome, Georgia, was arraigned before U.S. Magistrate Judge Walter E. Johnson.

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

This case is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Rome, Georgia, Police Department.

Assistant U.S. Attorney William G. Traynor is prosecuting 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.

Leonard Dreyer, a captain with the DeKalb County, Georgia, Sheriff's Office, has been indicted by a federal grand jury in the Northern District of Georgia on charges of encouraging Dwight Hamilton, a former corrections officer, to use excessive force against an inmate at the DeKalb County Jail and for attempting to obstruct justice by persuading officers who witnessed the incident to write false reports.  Dreyer was also charged with obstructing justice by making false statements to an FBI agent investigating the allegations. 

Dreyer, 50, of Decatur, Georgia, was arraigned today.  He was indicted by a federal grand jury on Oct. 20, 2015.

Hamilton, who was indicted earlier this year for using excessive force and writing false reports, has been charged in the same indictment with additional counts of excessive force and obstruction of justice.

According to the indictment and other information presented in court: Dreyer began working for the DeKalb County Sheriff’s Office in 2004 and worked as a supervisor in the jail from 2010 to 2012.  Hamilton worked in the jail from 2005 to 2012.  In 2011 and 2012, Hamilton, who was supervised by Dreyer, tased inmates without justification, many of them multiple times, in five separate incidents during his time at the jail.  The inmates suffered injuries as a result of the tasing.  The superseding indictment charges that in all five instances, Hamilton used excessive force and thereby violated the inmates’ Constitutional rights. 

Following four of the five tasing incidents, Hamilton wrote a false report with the intent of impeding, obstructing and improperly influencing the investigation.  In the first report, Hamilton falsely reported that the victim “made a step toward” Hamilton immediately before Hamilton tased him.

In another report, Hamilton falsely wrote that the victim failed to comply with Hamilton’s commands before Hamilton tased him.  Before one of the five incidents, Dreyer directed Hamilton to tase an inmate who was mouthing off to him.  After Hamilton repeatedly tased the inmate without legal justification, Dreyer encouraged three witness officers to write false reports that were favorable to Hamilton and would justify the tasing.  During the federal investigation of the incident, Dreyer also made false statements to an FBI agent.

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.  This case is being prosecuted by Assistant U.S. Attorney Brent Alan Gray of the Northern District of Georgia and Trial Attorney Christopher Perras of the Civil Rights Division.

Dreyer Superseding Indictment

ATLANTA – Leonard Dreyer, a Captain with the DeKalb County Sheriff's Office, has been arraigned on charges of encouraging former Corrections Officer Dwight Hamilton to use excessive force against an inmate at the DeKalb County Jail and for attempting to obstruct justice by persuading officers who witnessed the incident to write false reports.  Dreyer was also charged with obstructing justice by making false statements to an FBI agent investigating the allegations. 

Hamilton, who was indicted earlier this year for using excessive force and writing false reports, has been charged in the same indictment with additional counts of excessive force and obstruction of justice.

“What’s most troubling about this investigation is that a supervisor is alleged to have played a significant role in the commission of these crimes,” said U.S. Attorney John Horn.  “We recognize that detention officers – and their supervisors – have a difficult job as they maintain order and protect inmates in our county jails and prisons.  But under no circumstances can we allow a detention officer to abuse his power by participating in violent assaults on inmates, nor can we stand by and allow that officer to file false reports to cover up such an incident.”

“Leadership sets the tone at any law enforcement agency.  The allegations contained in these charges against Dekalb County Sheriff’s Captain Dreyer are disheartening because it was his role to ensure that rules were followed, that inmates were treated humanely, and that their basic civil rights were not violated.  Instead, the allegations indicate that Captain Dreyer used his position to influence or encourage others at the Dekalb County Jail to violate those rules and those rights, to include the tasing of inmates,” 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:  Dreyer began working for the DeKalb County Sheriff’s Office in 2004 and worked as a supervisor in the jail from 2010 to 2012.  Hamilton worked in the jail from 2005 to 2012.  In 2011 and 2012, Hamilton, who was supervised by Dreyer, used his Taser multiple times on inmates without justification.  The inmates suffered injuries as a result of the tasing.  The superseding indictment charges that in all five instances, Hamilton used excessive force and thereby violated the inmates’ constitutional rights. 

Following four of the five tasing incidents, Hamilton wrote a false report with the intent to impede, obstruct and improperly influence the investigation.  In the first report, Hamilton falsely reported that the victim inmate “made a step toward” Hamilton immediately before Hamilton tased him. 

In another report, Hamilton falsely wrote that the victim inmate failed to comply with Hamilton’s commands before Hamilton tased him.  Before one of the five incidents, Dreyer directed Hamilton to tase an inmate who was mouthing off to him.  After Hamilton repeatedly tased the inmate without legal justification, Dreyer encouraged three witness officers to write false reports that were favorable to Hamilton and that would justify the tasing.  During the federal investigation of the incident, Dreyer also made false statements to an FBI agent. 

Leonard Dreyer, 50, of Decatur, Georgia, was indicted by a federal grand jury on October 20, 2015.

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

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

Assistant U.S. Attorney Brent Alan Gray and DOJ Civil Rights Division Trial Attorney Christopher Perras 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 – Nineteen defendants have been convicted in a large, stolen U.S. Treasury check and identity theft ring, with the final defendants convicted by a jury trial which concluded on Friday October 16, 2015.  The defendants ran an elaborate scheme in which they stole checks, manufactured fake state driver’s licenses to use for identity theft and check cashing, and opened credit card accounts in the names of unsuspecting victims. 

“Fraud and identity theft crimes are a serious and growing problem in our community,” said U.S. Attorney John Horn. “Thieves who commit these crimes prey upon unsuspecting victims, steal their money, and compromise the victims’ livelihoods, sometimes causing lasting financial charges for them and their families.”

“The convictions in this case were the result of an extensive joint investigation involving many local, state and other federal agencies, who, along with persistent federal prosecutors, clearly saw a mandate to disrupt this organized group’s repeated victimization of the U.S. government.  The FBI is pleased with the role that it played in bringing this investigation forward for prosecution and it thanks those many dedicated law enforcement officers and prosecutors for staying the course on such a lengthy and complex case,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.

According to U.S. Attorney Horn and information presented in court: From approximately June 2012 until September 2014, the defendants worked together to obtain and cash United States Treasury checks stolen from the U.S. Mail. The checks were originally issued to people entitled to the federal funds, including taxpayers receiving refunds, retired federal employees receiving pension benefits, military families, and Social Security beneficiaries receiving Social Security and disability payments.

The defendants played different roles in the scheme: Defendants Erica Willis, Dexter Willis, and Antonio Slatton sold stolen checks to other defendants.  Check purchasers, including Hussain Abdullah, Asad Abdullah, Hudhayfah Abdullah and Hafid Abdur-Rabbani, were frequent customers of the check sellers and purchased checks by either paying 25% of the check’s face value or splitting the proceeds from the check in half with the supplier. After purchasing the stolen checks, the defendants would pay identification manufacturers like Ibrahim Abdur-Rabbani and Khalil Majeed to make fake Georgia driver’s licenses matching the names and addresses of the victims, but containing photos of “check runners.” In exchange for a fee, the “ check runners” would use the fake driver’s licenses to cash the stolen checks at retail locations throughout the Atlanta, Georgia, metropolitan area, such as Wal-Mart and Publix.

As part of the investigation, FBI and other law enforcement agents worked with a confidential informant, which put them in a position to recover the stolen checks and false identifications.  The government reimbursed the stores that cashed the stolen checks for the losses they incurred. 

In a separate credit card fraud scheme, defendants Asad Abdullah, Mikal Majeed, and Billie Cosby, obtained and used counterfeit identification documents to pose as real Sam’s Club members. After presenting the fraudulent documents at various Sam’s Club locations in Georgia, Tennessee, and Alabama, the defendants obtained replacement store credit cards in the names of the victims, which the defendants then used to buy gift cards, gas, groceries, and other items at various Sam’s Club and Wal-Mart locations.

Across the two schemes, the defendants defrauded the federal government, Wal‑Mart, and Sam’s Club of approximately $350,000. 

The defendants are as follows:

• Asad Abdullah, 37, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, aggravated identity theft and conspiracy to commit credit card fraud.
• Erica Willis, 36, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft.
• Hussain Abdullah, 34, of Atlanta, Georgia, was convicted ofconspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft.
• Hudhayfah Abdullah, 32, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft.
• Hafid Abdur-Rabbani, 37, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft.
• Ibrahim Abdur-Rabbani, 33, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft.
• Khalil Majeed, 35, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft.
• Ali Al-Amin, 36, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft.
• Zakariyah Abdullah, 35, of Atlanta, Georgia, was convicted of aggravated identity theft and using a passport belonging to another.
• Sayeed Valdez, 38, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds.
• Antonio Slaton, 37, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds.
• Cory Howell, 43, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds.
• Damion Davis, 31, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds.
• Dexter Willis, 36, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds.
• JoAnn Drigo, 37, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds.
• Muhajid Ahmad, 33, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds.
• Billee Cosby, 34, of Atlanta, Georgia, was convicted of conspiracy to commit credit card fraud.
• Mikal Majeed, 33, of Atlanta, Georgia, was convicted of aggravated identity theft.
• Jasmine Proctor, 20, of Atlanta, Georgia, was convicted of interfering with the U.S. Mail.

Sentencing for the defendants has not yet been scheduled.

This case was investigated by the Federal Bureau of Investigation. Assistance in this case was provided by the following federal agencies: Federal Air Marshal Service; United States Customs and Border Protection; Bureau of Alcohol, Tobacco, Firearms, and Explosives; IRS-Criminal Investigations; United States Secret Service; United States Postal Service; and the Department of Homeland Security. The following state and local agencies also assisted: Georgia Bureau of Investigation; Georgia Office of Consumer Protection; Georgia Department of Corrections; Atlanta Police Department; Woodstock Police Department; Fulton County Sheriff’s Office; Henry County Police Department; Gwinnett County Police Department; Dunwoody Police Department; Brookhaven Police Department; Sandy Springs Police Department; DeKalb County Police Department, and Chamblee Police Department.

Assistant U.S. Attorneys Nekia Hackworth and Kim S. Dammers, along with DOJ Trial Attorney Hans 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.