Northern District of Georgia

Columbia, SC - Joel Perrin Robinson has been sentenced to eight years in prison for shooting a DEA special agent serving a search warrant at Robinson's house.  Agents had obtained the warrant to search his home for chemicals used to manufacture PCP.

“This defendant shot an agent even though the agent was wearing a vest that clearly displayed the word “POLICE” in large, bold letters,” said Acting U.S. Attorney John Horn. “Instead of returning fire, the agents took the defendant into custody without further incident. Their poise under fire reminds us of the challenges that law enforcement agents face every day while serving and protecting the community.”

“This investigation is a reminder of the dangers that law enforcement officers endure daily while protecting and serving the public,” said Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division. “Through training and tactics, the officers in this case showed poise by not returning fire, despite being fired upon. Instead, they identified and neutralized the threat. This investigation was successfully prosecuted because of the collective effort between DEA, federal, state and local law enforcement and the United States Attorney’s Office.” 

According to Acting U.S. Attorney Horn, the charges and other information presented in court: On July 6, 2013, a house in Fairburn, Georgia burned to the ground. It burned for two days, and when investigators were finally able to enter the house, they found the charred remains of a large, clandestine phencyclidine (“PCP”) laboratory. Investigation into those responsible for the fire led DEA agents to Robinson’s residence.

On October 20, 2014, DEA agents executed a search warrant at Robinson’s Orangeburg, South Carolina home for chemicals used to manufacture PCP. The agents announced their presence by sounding sirens, flashing lights, and yelling “Police, Search Warrant!” When the agents entered, Robinson grabbed a laser-sighted pistol and fired it into a wall without ever identifying a target.

Robinson then put on slippers, walked to a door leading out to a swimming pool, and opened it. Standing in the pool area were two DEA agents. Robinson activated the laser sight on his weapon and aimed it at one of those agents, who was wearing a ballistic vest with the word “POLICE” written across the front in yellow letters. Robinson shot that agent, hitting him in the arm, causing serious injury. None of the other 19 DEA agents at the scene fired back at Robinson, but moved quickly to take Robinson into custody.

Joel Perrin Robinson, 33, of Orangeburg, S.C., was sentenced Monday July 6, 2015, to eight years in prison to be followed by three years of supervised release by J. Michelle Childs, U.S. District Judge for the District of South Carolina.  He was ordered to pay restitution in the amount of $82,518.31, in addition to any medical bills the DEA Special Agent incurs over the next 90 days.  On February 9, 2015, Robinson pleaded guilty to a charge of using a deadly weapon to assault an officer serving a search warrant.

Agents of the Drug Enforcement Administration and the Federal Bureau of Investigation investigated this case. Valuable assistance was also provided by the Georgia Bureau of Investigation, Georgia State Fire Marshal’s Office, Fulton County Fire Department, Atlanta Fire Department, Snellville Police Department, Henry County Sheriff’s Department, Clayton County Sheriff’s Office, South Carolina Law Enforcement Division (SLED), Richland County Sheriff’s Department, Lexington County Sheriff’s Department, Kershaw County Sheriff’s Department, Orangeburg County Sheriff’s Office, Fifth Circuit Solicitor’s Office, and the Columbia Police Department.

Assistant United States Attorneys Michael Herskowitz, Vivek Kothari, Jennifer Whitfield, and Michael J. Brown, who have been admitted as Special Assistant U.S. Attorneys in the District of South Carolina, prosecuted the case.

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

ATLANTA - Tessema Lulseged, the owner and operator of Big T Supermarket in Decatur, Georgia, has pleaded guilty to trafficking in food stamps.  Lulseged allowed his customers to exchange their food stamp benefits for cash in a scheme that netted him $6.5 million.

“Food stamps are intended to provide assistance to our citizens most in need,” said Acting U.S. Attorney John A. Horn. “This defendant ran a corrupt exchange scheme that, until his scheme was discovered, undermined the purpose of the program and resulted in great financial benefit to himself.”

“This defendant, in knowingly and so aggressively stealing government assistance from vulnerable individuals who were already struggling,  demonstrates a new level of insensitivity and greed. The FBI will continue to provide assets and resources to assist in ensuring that these much needed federally funded assistance programs are used as intended and not abused by such individuals as Mr. Lulseged,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.

“USDA-OIG dedicates its resources to ensuring integrity in its programs.  One of the ways in which USDA-OIG does this is through vigorously investigating allegations of fraud in the EBT program,” said Karen Citizen-Wilcox, Special Agent-in-Charge, USDA-OIG.  “Tessema Lulseged made a choice to defraud the EBT program and in doing so defrauded the taxpayers of millions of dollars through purchasing benefits from recipients.  He, like countless others, may look at this as a victimless crime.  However, it is not a victimless crime, but rather a crime that takes away needed food from the mouths of those the program was intended for. More often than not, those victims, many of whom are children, have no say in how the benefits are used.  USDA-OIG will continue to work with DOJ and its law enforcement partners to investigate and prosecute those who greedily and selfishly traffic in EBT benefits.”

According to Acting U.S. Attorney Horn, the charges, and other information presented in court:  From January 2009 through April 2014, Lulseged 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.

Lulseged, 49, of Decatur, Georgia, pleaded guilty before U.S. District Court Judge Leigh Martin May. His sentencing hearing is scheduled for September 22, 2015, at 10:00 a.m.

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

Assistant United States Attorneys J. Russell Phillips and Jenny R. Turner are prosecuting the case.

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

ATLANTA – Four steroid distributors have been sentenced for trafficking in illegal anabolic steroids.  The defendants were importing raw materials from China and selling the finished product online.

"The use of illegal anabolic steroids is far from a harmless pursuit.  They pose significant health risks,” said Acting U.S. Attorney John Horn.  “Users of steroids could suffer kidney failure, liver damage, and younger users can even suffer heart attacks. Thankfully, USPIS and DEA agents put these distributors, who sent their illicit product across the country, out of business.”

“The sentencing’s for the suspects involved in Operation Eliteanabolx should serve as a warning to those who intend to misuse the U.S. Mail for shipping illicit drugs.  The U.S. Postal Inspection Service would like to recognize and commend the efforts of our state and local counterparts who diligently investigated this case as well as the U.S. Attorney's Office of the Northern District of Georgia for their dedication and assistance in a successful resolution. The U.S. Postal Inspection Service remains vigilant in protecting the nation's mail system from all criminal activity to ensure the public's trust in a safe and secure mail system,” said Thomas L. Noyes II, Inspector in Charge, Charlotte Division.

“Steroids pose a significant health risk to users seeking to artificially enhance their athletic abilities,” said Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division commented on the sentencings. “The mission of DEA is unwavering--we relentlessly pursue drug traffickers who distribute dangerous drugs that cause immeasurable damage to our communities.”

According to Acting U.S. Attorney Horn, the charges and other information presented in court: In 2013, Brandon Keith Franklin and Jay Michael Reger began producing and selling anabolic steroids under the name Performance Formulations. They received raw materials for the steroids from China and sold the finished product online. Franklin and Reger were partners in the operation: Franklin managed the website and Reger mixed the raw materials to create the finished product. They hired Austin Britt Shirley and Andrew Chrismer to fill the orders. Shirley packed the orders and Chrismer mailed them. Franklin used the proceeds from his illegal steroid business to fund a lavish lifestyle, purchasing a number of luxury vehicles.

Shirley and Chrismer were arrested on May 28, 2014, when law enforcement agents with the United States Postal Inspection Service and the Drug Enforcement Administration seized tens of thousands of units of steroids from the organization. Franklin was arrested on December 3, 2014. Even after the seizures and arrests, Reger continued to manufacture steroids from his home in Woodstock, Georgia, until he was arrested on December 10, 2014.

The defendants in this case have been sentenced as follows:

• Brandon Keith Franklin, 41, of Canton, Georgia, was sentenced to two years, six months in prison to be followed by three years of supervised release. Franklin was convicted on December 16, 2014, after he pleaded guilty.  His luxury vehicles were also forfeited.

• Jay Michael Reger, 30, of Woodstock, Georgia, was sentenced to two years in prison to be followed by three years of supervised release. Reger was convicted on December 16, 2014, after he pleaded guilty.

• Andrew Chrismer, 25, of Atlanta, Georgia, was sentenced to one year in prison to be followed by two years of supervised release. Chrismer was convicted on June 25, 2014, after he pleaded guilty.

• Austin Britt Shirley, 25, of Acworth, Georgia, was sentenced to two years of probation. Shirley was convicted on September 25, 2014 after he pleaded guilty.

All four defendants were all sentenced by U.S. District Judge Timothy C. Batten, Sr.

This case was investigated by the United States Postal Inspection Service and Drug Enforcement Administration.

Assistant United States Attorney Vivek Kothari 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 - Joan Leger has been sentenced to serve two years in federal prison for filing false tax returns that claimed over $4 million in fraudulent refunds for refugees who were unaware of the fraud.

“This defendant took advantage of refugees’ limited understanding of tax laws to file fraudulent tax returns in their names,” said Acting U.S. Attorney John Horn.  “Her fraudulent actions cost American taxpayers millions of dollars.”

“An integral part of IRS Criminal Investigation’s mission involves detecting, investigating, and stopping fraudulent refund schemes,” stated Acting Special Agent in Charge, James E. Dorsey.  “Special Agents work year round to investigate and root out unscrupulous return preparers like Ms. Leger.”

According to Acting U.S. Attorney Horn, the charges and other information presented in court: Between 2008 and 2012, Leger operated two tax preparation businesses in Stone Mountain, Georgia; “J & Company Tax Service” and “1804 Tax Group, Inc.”  While operating these businesses, she filed thousands of federal income tax returns that claimed fraudulent deductions, expenses, and credits, which resulted in her clients receiving fraudulent refunds.  Leger’s scheme primarily targeted Bosnian refugees who spoke little or no English and had a limited understanding of tax laws.  In particular, Leger included false income and created phony businesses, faking both income and expenses for those businesses.  Leger received monetary fees from the fraudulent refunds.    In total, Leger prepared tax returns claiming over $4 million in fraudulent refunds.

Joan Leger, 48, of Stone Mountain, Georgia, was sentenced to two years in prison to be followed by one year of supervised release, and ordered to pay restitution in the amount of $134,961.  Leger was convicted on March 12, 2015, after she pleaded guilty.

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

Assistant United States Attorney Jeffrey Brown prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the 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 - Stafford S. Maxwell, the former owner and Chief Executive Officer of Millennium Capital Exchange, Inc., has pleaded guilty to 10 counts of wire fraud for orchestrating a multi-million dollar foreign exchange market Ponzi scheme.

“Maxwell lured investors to his forex firm with bravado and false promises of trading success,” said Acting U.S. Attorney John Horn. “Maxwell’s claims led to nothing more than common theft, as he used lies and deceit to fleece people of their savings.”

“It is hoped that this guilty plea will provide some comfort to the many investors turned victims in this case that Mr. Maxwell will be held accountable for his greed based criminal conduct.  The FBI continues to caution investors to be wary of those individuals promising such high rates of returns,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.

According to Acting U.S. Attorney Horn, the charges, and other information presented in court: In March 2007, Maxwell incorporated and owned Millennium Capital Exchange, Inc. (“Millennium”), which purported to be a foreign exchange market trading firm. The foreign exchange market (or forex market) is the global market in which participants buy, sell, exchange, and speculate on currencies. The forex trading market consists of banks, commercial companies, central banks, investment management firms, hedge funds, retail forex brokers, and individual investors. Forex trading involves the trading of currencies from different countries against each other. An example of a forex trade is to buy Japanese yen while simultaneously selling United States dollars. Trading in foreign exchange markets frequently exceeds $5 trillion per day.

From about 2008 to January 2012, Maxwell solicited investments from individuals across the United States with promises of high fixed rates of return to be generated from successful foreign currency trading. In particular, to obtain money from investors, Maxwell falsely stated that: (a) he possessed excellent forex trading skills; (b) he had a long history of forex trading success; (c) he often assured investors that they would earn an annualized rate of return on their investments from approximately 48% to 72%; (d) he used “stops” and “floors” on currency trades to insure that the gains would be large, but that the losses would be small; (e) investors had realized significant gains based on his trading; and (f) he had reserve funds that enabled him to cover any trading losses.

In fact and in truth, Maxwell: (a) had little success executing forex trades; (b) lost almost all the money that he traded in forex markets; (c) was unable to pay investors the promised investment dividends; and (d) possessed no reserve fund to cover forex trading losses.

According to Millennium’s business model, Maxwell was supposed to use the invested funds to make forex trades through accounts at a financial firm in Geneva, Switzerland. Based on his false representations, investors wired Maxwell well over $1 million, expecting that the funds would be traded in the Swiss accounts. After receiving money from investors, however, Maxwell diverted approximately half of the money for other improper purposes. First, in an effort to perpetuate the scheme and make it appear that he was a successful forex trader, Maxwell used the money received from new investors (that was supposed to be traded on the forex market) to pay “dividends” to older investors. Second, Maxwell used the money received from investors (that was supposed to be traded on the forex market) to pay his own personal living expenses. In the end, Maxwell spent or lost almost every dollar invested with him.

On March 17, 2015, Stafford S. Maxwell, 46, of Mableton, Georgia, was indicted on 10 counts of conspiratorial and substantive wire fraud.

Sentencing for Maxwell is scheduled for September 2, 2015, at 10:00 a.m., before United States District Judge Eleanor L. Ross.

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

Assistant United States Attorney Jeffrey W. Davis 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-ndga.

ATLANTA - Samuel London has been sentenced to eight years and four months in federal prison for downloading child pornography.  London’s computer contained thousands of files containing child pornography including images depicting the sexual abuse of infants and toddlers.

“It is beyond belief that anyone could enjoy watching the sexual abuse of infants and toddlers,” said Acting U.S. Attorney John Horn. “This defendant’s conduct fueled the production and trade of this disgusting material.”

“This sentencing of Mr. London removes from our community an individual who has consistently demonstrated his willingness to exploit vulnerable children through child pornography. This case not only reflects the commitment of law enforcement to aggressively pursue these types of cases but also illustrates why we need to,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.

According to Acting U.S. Attorney Horn, the charges and other information presented in court: In August 2013, law enforcement officers in Maryland seized a website that was used by individuals to advertise and distribute child pornography and to discuss the sexual abuse of children. That investigation led to a target in Michigan, who admitted to FBI agents that he had sexually abused his three-year-old daughter while using Skype so that a couple in Georgia could watch the abuse.

FBI agents determined that the couple—Samuel London and Heather Dalton—lived in Sugar Hill, Georgia. FBI agents executed a search warrant at their home on January 24, 2014. Agents found thousands of files containing child pornography on a computer belonging to London, with many of the images depicting the sexual abuse of infants and toddlers.

Samuel London, 30, of Sugar Hill, Georgia, has been sentenced to eight years and four months in prison to be followed by ten years of supervised release.  London was convicted on these charges on April 2, 2015, after he pleaded guilty.

Heather Dalton is being prosecuted by the Gwinnett County District Attorney’s Office on charges of child molestation.

This case was investigated by the Federal Bureau of Investigation.

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

This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse.  Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the 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 – DaVita Healthcare Partners, Inc., the largest provider of dialysis services in the United States, has agreed to pay $450 million to resolve claims that it violated the False Claims Act by knowingly creating unnecessary waste in administering the drugs Zemplar and Venofer to dialysis patients, and then billing the federal government for such avoidable waste.  Davita is headquartered in Denver, Colorado, and has dialysis clinics in 46 states and the District of Columbia.

“Through personal sacrifice and courage, two whistleblowers exposed knowingly wasteful dosing practices designed simply to increase profits and improperly drain the government’s resources,” said Acting U.S. Attorney John Horn.  “This settlement returns hundreds of millions of dollars to the treasury that had been improperly obtained by DaVita through these wasteful practices.”

“This settlement is an example of what can be accomplished as a result of the successful cooperation between the government and whistleblowers in protecting our vital federal health care programs,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.

This civil settlement resolves allegations brought in a whistleblower action that DaVita devised and employed dosing grids and/or protocols specifically designed to create unnecessary waste of the drugs Venofer and Zemplar.  These drugs are packaged in single-use vials, which are intended for one-time use.  Sometimes, the amount of the drug in the vials does not match the dosage specified by the physician, resulting in the remainder of the drug in the vial being discarded.

At the time of the alleged scheme, Medicare would reimburse a dialysis provider for certain waste if the dialysis provider – acting in good faith – discarded the remainder of the drug contained in a single-use vial after administering the requisite dose and/or quantity of the drug to a Medicare patient.  The whistleblowers’ complaint alleged that, to create unnecessary Zemplar waste, DaVita required its employees to provide Zemplar to dialysis patients pursuant to mandatory and wasteful “dosing grids.”  Zemplar, a Vitamin D supplement usually administered at every dialysis session, is packaged in single-use vial sizes of 2 mcg, 5 mcg, and 10 mcg. Davita allegedly created unnecessary waste by requiring its employees to provide Zemplar to dialysis patients pursuant to mandatory “dosing grids,” which were designed to maximize the amount of Zemplar administered to patients.  DaVita then allegedly billed the government not only for the amount of Zemplar administered to patients, but also for the amount “wasted.”

With regard to Venofer, an iron supplement packaged only in a single-use vial size of 100 mg during the relevant time period, DaVita allegedly enacted protocols that required nurses to administer this drug in small amounts, and at frequent intervals, to maximize wastage.  For instance, in certain instances, DaVita’s protocol called for a patient to receive 25 mg of Venofer per week, which resulted in 300 mg of waste per month that was billed to the Government.  In contrast, if the order had been filled by giving the patient the entirety of a single 100 mg vial, once per month, no waste would have resulted.

In 2011, the Centers for Medicare and Medicaid Services changed the manner by which it reimbursed dialysis providers for such drugs.  As a consequence, wastage derived from single-use vials was no longer profitable, and, as a result, DaVita allegedly changed its practices and reduced its drug wastage dramatically.

The allegations resolved today arose from a lawsuit filed and ultimately litigated to this successful resolution by two whistleblowers, Dr. Alon Vanier and nurse Daniel Barbir, under the qui tam provisions of the False Claims Act.  Under the Act, private citizens can bring suit on behalf of the government for false claims and share in any recovery.  The United States may intervene in the action or, as in this case, the whistleblower may pursue the matter.  To bring this case to its successful resolution, whistleblowers Dr. Vainer and Mr. Barbir, along with their attorneys, engaged in extensive and exceptional litigation efforts. 

The lawsuit is captioned United States ex rel. Alon J. Vainer, M.D., F.A.C.P. and Daniel D. Barbir, R.N., Plaintiffs v. DaVita, Inc. and Gambro Healthcare, Inc., and their respective subsidiaries and affiliated companies, Defendants, No. 1:07-cv-2509-CAP (N.D. Ga.).  The claims settled by this agreement are allegations only; there has been no determination of liability.

Assistant United States Attorney Paris A. Wynn handled this matter for the U.S. Attorney’s Office.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the 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 – Craig  D. Near and Genziko, Inc., of Alpharetta, Georgia, were convicted by a federal jury Friday, June 19, 2015, on seven counts of wire fraud and two counts of filing false claims against the United States, all relating to a procurement fraud scheme targeting the National Aeronautics and Space Administration (NASA) and the National Science Foundation (NSF).

“For years this defendant supported himself and his family in a suburban lifestyle, with practically his only earnings being the fruits of his scheme defrauding the government,” said Acting U.S. Attorney John Horn.  “The Small Business Innovation Research Program, which Near defrauded, supports technological innovation by investing federal research funds in critical priorities.  Near’s scheme diverted funds that should have been used for these important goals.”

“The NASA Office of Inspector General is committed to ensuring aggressive oversight of taxpayer funds used for scientific research by NASA contractors and grantees,” said Paul Martin, NASA Inspector General.      

“The Small Business Innovation Research Program sets aside funds to support small companies that conduct innovative research. These convictions of guilt on nine counts, including wire fraud and false claims, send a strong signal to anyone who would seek to defraud this program and divert taxpayer dollars intended for scientific research to personal use.  I commend the U.S. Attorney’s office and our investigative partners for their work on this case,” said Allison Lerner, the National Science Foundation Inspector General.

“The United States Secret Service and our law enforcement partners take an aggressive approach towards investigating individuals who commit fraud to illegally enrich themselves. We will continue to work closely with prosecutors to ensure offenders are put behind bars,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.

According to Acting U.S. Attorney Horn, the charges and other information presented in court:  From approximately June 2008 to June 2014, Near submitted numerous fraudulent grant and contract proposals to various federal agencies seeking funds for scientific research.  Near submitted all of the proposals through his company, Genziko.  All of the proposals falsely stated that Genziko had multiple employees.  The proposals also listed the credentials of an apparently impressive management team with many years of experience in the relevant scientific and engineering specialties, without the knowledge or consent of several of those individuals.

Some of the proposals also contained fraudulent budgets.  Near, through Genziko, Inc., inserted a variety of fake costs into the fraudulent budgets, including salaries for engineers and technicians who were not needed to accomplish the research work.  Near pocketed the salaries for these “phantom employees” and also collected inflated overhead and general and administrative costs from the government based on their fictitious wages.  At the same time, Near pocketed money earmarked for the university subcontractors and scientist consultants who actually completed work on the research projects.  Taken together, these fraudulent techniques allowed Near and Genziko, Inc., to conceal the fact that they were making profits ranging from 79 to 197 percent on the three proposals that were actually granted by the government.  These profits were far in excess of the seven percent maximum that was allowed for these contracts by the NSF and NASA.

In sum, Near and Genziko, Inc., received almost $800,000 in federal research funds on the three granted proposals.  Rather than using the money for the scientific research for which it was intended, Near spent it almost entirely on personal expenses such as mortgage payments, private school tuition for his children, vacations, shopping, and large money wires to family and friends overseas.

Sentencing has been scheduled for 10:00 am on September 1, 2015, before United States District Judge Thomas W. Thrash.

This case is being investigated by the National Aeronautics and Space Administration, the National Science Foundation, and the United States Secret Service.

Assistant United States Attorneys Alana R. Black and Lynsey M. Barron are prosecuting the case.

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

ATLANTA - The United States Attorney’s Office for the Northern District of Georgia has initiated a review of local courthouses in the Northern District of Georgia to determine if they are in compliance with the Americans With Disabilities Act of 1990 (the “ADA”). This initiative is being conducted in accordance with the federal government’s congressionally-mandated responsibility to review compliance with the ADA.

“Access to local courthouses is a fundamental part of our society that everyone in our district is entitled to enjoy,” said John A. Horn, Acting U.S. Attorney for the Northern District of Georgia. “We are hopeful that our local courthouses will partner with us on this very important initiative to ensure that they are in full compliance with the law.”

As part of the review, nine local courthouses are being asked to complete and return a survey form.  Once the survey forms are completed, investigators may follow up with on-site inspections to confirm survey responses and to evaluate compliance with the ADA regulations. The U.S. Attorney’s office hopes to work cooperatively with local courthouses that are found to be non-compliant. The goal is to ensure that government facilities, services, and programs are accessible to persons with disabilities.

The courthouses under review are in DeKalb, Fayette, Floyd, Fulton, Gwinnett, Hall, Rockdale, Spalding, and Troup counties. Any member of the public who wishes to file a complaint alleging that a courthouse or any other place of public accommodation with the Northern District of Georgia is not accessible to people with disabilities may contact the U.S. Attorney’s Office by phone at 404-581-4626 or email at USAGAN.CivilRights@usdoj.gov. 

Additional information about the ADA can be found at www.ada.gov, or by calling the toll-free information line at the Civil Rights Division of the Justice Department at (800)514-0301 (voice) and (800)514-0383(TTY).   

Assistant United States Attorney Aileen Bell Hughes is representing the United States for the Northern District of Georgia in this matter.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the 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 - The United States Attorney’s Office for the Northern District of Georgia announced that it has reached a settlement with Dennis Jaffe and Dennis B. Jaffe D.M.D., P.C., to pay $324,327.05 to settle health fraud claims -- specifically that Jaffe violated the False Claims Act by fraudulently billing Medicaid for tooth extraction procedures and for fraudulently billing for services rendered by a dental assistant when Jaffe was not present in the office.  Under the terms of the settlement, Jaffe is also excluded from all federal and state healthcare programs.

In addition to the civil settlement, Jaffe also pleaded guilty to a charge of theft from a healthcare benefit program in a separate federal criminal action and was sentenced to serve one year of probation.  As part of the plea, Jaffe agreed to surrender his dental license.

“Citizens rely on dentists to treat all patients in accordance with the approved standards of care,” said Acting U.S. Attorney John Horn.  “Patients were placed at risk when a dental assistant, without Jaffe present to supervise, performed procedures a licensed dentist must oversee.  The defendant also enriched himself at the expense of those patients by marking up the bills to Medicaid for the services he was not performing.”             

“All patients should be entitled to the same level of care and providers who choose to cut costs and increase profits by using unlicensed staff bring shame upon the entire profession and more importantly jeopardizes the safety of patients,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “Dr. Jaffe’s case should stand as a warning to those who choose to put profits above patient care.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI, in working with Health & Human Services investigators, is proud of the role that it continues to play in ensuring that federally funded healthcare programs such as Medicaid are not abused by providers such as Mr. Jaffe.  The FBI asks that anyone with information regarding such matters report it to authorities by contacting their nearest FBI field office.”
 

Georgia Attorney General Sam Olens stated:  “The State’s Medicaid Fraud unit is pleased to work with our federal partners in attacking fraud upon vital healthcare programs.  Dr. Jaffe’s actions are inexcusable and clearly warranted the administrative, civil, and criminal actions.  I want to thank Assistant Attorneys General Kevin D. Bradberry and James P. Mooney for all of their hard work on the case.”

The civil settlement resolves allegations that Jaffe, a 71-year-old dentist from Atlanta, Georgia, fraudulently sought payment from Medicaid for higher and more expensive levels of service than were actually performed, a practice commonly referred to as “upcoding.”  The settlement also resolves claims that Jaffe unlawfully billed for services rendered by an unsupervised dental assistant on days in which Jaffe was not present in the office.  Under Medicaid regulations and Georgia law, it is unlawful for dental assistants to render any care outside of the direct supervision of a licensed dentist.

The civil settlement resolves a lawsuit filed by Michelle Smith under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the United States and share in any recovery obtained.   The case, pending in the Northern District of Georgia, is filed under United States ex rel. Michelle Smith v. Dennis B. Jaffe D.M.D., P.C. and Dennis B. Jaffe, Civ. 2:13-CV-1732.  The Federal government will receive $190,635.67, and the State of Georgia will receive the remainder of the settlement.  Ms. Smith will receive a share of the settlement payment that resolves the qui tam suit that she filed.  The claims in the civil settlement are allegations only, and there has been no determination of liability.

This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services.  The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.  One of the most powerful tools in this effort is the False Claims Act.  Since January 2009, the Justice Department has recovered a total of more than $24 billion through False Claims Act cases, with more than $15.3 billion of that amount recovered in cases involving fraud against federal health care programs.

The case was investigated by Special Agents of Health & Human Services, Office of Inspector General and the Federal Bureau of Investigation as well as investigators with the Georgia Medicaid Fraud Control Unit.

The civil settlement was reached by Assistant U.S. Attorney David A. O’Neal and Georgia Assistant Attorney General Kevin D. Bradberry.  The criminal case was prosecuted by Assistant U.S. Attorney Nathan Kitchens and Georgia Assistant Attorney General James P. Mooney.

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 - Dirk Antonious Engram, Jr., has been sentenced to federal prison for taking bribes to smuggle contraband into U.S. Penitentiary-Atlanta while he worked there as a corrections officer. He admitted that he charged $500 every time he smuggled cigarettes, marijuana, or other contraband into the prison for inmates.

“Corrupt corrections officers compromise prison safety while they profit from the underground economy that unfortunately exists in prison,” said Acting U.S. Attorney John Horn.  “Prison is supposed to be a place where the controls are strong enough that additional crime is impossible, but this breaks down instantly when the officers themselves participate in the corruption.”

“The sentencing of Mr. Engram marks the end of his career as a federal corrections officer and the beginning of his time as a federal inmate,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.  “The FBI will continue to vigorously investigate all allegations of corruption within this or other correctional facilities as part of the overall effort to ensure safety and order for both inmates and staff at these facilities.”

According to Acting U.S. Attorney Horn, the charges, and other information presented in court:  In November 2013, Engram began working as a corrections officer at U.S. Penitentiary-Atlanta, a medium-security prison with approximately 2,000 male inmates.  In 2014, Engram began smuggling contraband into the prison for inmates who befriended him.  Engram charged $500 each time that he smuggled cigarettes, marijuana, or other contraband into the prison.

He was arrested on September 11, 2014, by agents with the FBI after he accepted a bribe to smuggle what he believed was heroin into the penitentiary.

Dirk Antonious Engram, Jr., 27, of Atlanta, was sentenced to two years, four months in prison to be followed by three years of supervised release. Engram pleaded guilty to the charges on March 24, 2015.

This case was investigated by the FBI.

Assistant United States Attorney William G. Traynor prosecuted the case.

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

ATLANTA – First Tennessee Bank, N.A. (“First Tennessee”) has agreed to pay the United States $212.5 million 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 (HUD) Federal Housing Administration (FHA) that did not meet applicable requirements, the Justice Department announced today.  First Tennessee is headquartered in Memphis, Tennessee.

“First Tennessee admitted failings that resulted in poor quality FHA loans.  While First Tennessee profited from these loans, taxpayers incurred substantial losses when the loans defaulted,” said John A. Horn, the Acting U.S. Attorney for the Northern District of Georgia.  “The settlement, as well as the investigation that preceded it, illustrates that the Department of Justice will closely scrutinize entities that cause financial injury to the Government, and, in turn, the American taxpayer.”

“First Tennessee’s reckless underwriting has resulted in significant losses of federal funds and was precisely the type of conduct that caused the financial crisis and housing market downturn,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division.  “We will continue to hold accountable lenders who put profits before both their legal obligations and their customers, and restore wrongfully claimed funds to FHA and the treasury.” 

“We are pleased that First Tennessee has acknowledged facts that demonstrate its failure to comply with HUD’s requirements and has agreed to settle with the government,” said Helen Kanovsky, HUD’s General Counsel.  “We thank the Department of Justice and HUD’s Office of Inspector General for all of their efforts in helping us to make this settlement a reality.  We hope this agreement sends a message to those lenders with whom we do business that HUD takes compliance very seriously and so should they.”

“Our investigation found that First Tennessee caused FHA to pay claims on loans that the bank never should have approved and insured in the first place,” said HUD Inspector General David A. Montoya.  “This settlement reinforces my commitment to combat fraud in the origination of single family mortgages insured by the FHA and makes certain that only qualified, creditworthy borrowers who can repay their mortgages are approved under the FHA program.”

Between January 2006 and October 2008, First Tennessee, through its subsidiary First Horizon Home Loans Corporation (“First Horizon”), participated in the FHA insurance program as a Direct Endorsement Lender (DEL).  As a DEL, First Tennessee had the authority to originate, underwrite, and endorse mortgages for FHA insurance. If a DEL such as First Tennessee approves a mortgage loan for FHA insurance and the loan later defaults, the holder of the loan may submit an insurance claim to the U.S. Department of Housing and Urban Development (HUD), FHA’s parent agency, for the losses resulting from the defaulted loan.

Under the DEL program, neither the FHA nor HUD reviews a loan before it is endorsed for FHA insurance. DELs such as First Tennessee are therefore required to follow program rules designed to ensure that they are properly underwriting and certifying mortgages for FHA insurance, to maintain a quality control program that can prevent and correct deficiencies in their underwriting practices, and to self-report any deficient loans identified by their quality control program.  In August 2008, First Tennessee sold First Horizon to Metlife Bank, N.A. (“Metlife”), a wholly-owned subsidiary of Metlife, Inc., which thereafter originated FHA-insured mortgages under the Metlife name.  In February 2015, Metlife agreed to pay $123.5 million to resolve its False Claims Act liability arising from its FHA originations after it acquired First Horizon from First Tennessee.

The settlement announced today resolves allegations that First Tennessee failed to comply with FHA origination, underwriting, and quality control requirements.   As part of the settlement, First Tennessee admitted to the following facts:

• From January 2006 through October 2008, it repeatedly certified for FHA insurance mortgage loans that did not meet HUD underwriting requirements.

• Beginning in late 2007, First Tennessee significantly increased its FHA originations.  The quality of First Tennessee’s FHA underwriting significantly decreased during 2008 as its FHA lending increased.

• Beginning no later than early 2008, First Tennessee became aware that a substantial percentage of its FHA loans were not eligible for FHA mortgage insurance due to its own quality control findings.  These findings were routinely shared with First Tennessee’s senior managers.  Despite internally acknowledging that hundreds of its FHA mortgages had material deficiencies, and despite its obligation to self-report findings of material violations of FHA requirements, First Tennessee failed to report even a single deficient mortgage to FHA.

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

Assistant United States Attorney Paris A. Wynn handled this matter for the U.S. Attorney’s Office.

The investigation of the allegations in the Government’s complaint was a coordinated effort between the Civil Division of the Department of Justice, the U.S. Attorney’s Office for the Northern District of Georgia, HUD, and HUD’s Office of Inspector General.

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/.

ROME, Ga. - Grady Wayne Fricks has pleaded guilty to conspiracy charges arising out of a scheme to defraud Cornerstone Community Bank in Dalton, Georgia.

“This defendant used his connection with a bank insider to obtain a fraudulently inflated loan,” said Acting U.S. Attorney John Horn. “Fricks’ ability to manipulate people to further his scheme left the bank and its stockholders shouldering the loss.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Bank fraud is not a victimless crime.  With this guilty plea, Mr. Fricks will be held accountable for his criminal actions and a clear message sent to others considering such greed based fraudulent acts that this is a serious crime with serious consequences.”

According to Acting U.S. Attorney Horn, the charges and other information presented in court: In November 2004, Fricks contacted a senior vice president at Cornerstone Community Bank and stated that he needed an $850,000 loan to purchase property in Ringgold, Georgia. Fricks did not reveal that he had already signed a contract to purchase the property for only $425,000. Fricks had done business with that senior vice president for many years before this, both at Cornerstone and at the bank where the employee had worked before joining Cornerstone. And Fricks had allowed the bank employee free use of his condominium at a beach in Florida, five to ten times.

The senior vice president violated Cornerstone’s policies and procedures by not obtaining a copy of the sales contract between Fricks and the seller of the property to verify the contract price. The senior vice president also allowed Fricks to select an appraiser to appraise the property. Fricks paid the appraiser $1,000 to inflate the appraised value of the property so that Cornerstone would approve the $850,000 loan Fricks was seeking. In addition, Fricks gave the appraiser $100 in cash as a “tip.” The appraiser provided Fricks with a fraudulently inflated appraisal report, which stated that the market value of the property was $1,010,000.

Prior to the loan closing, Fricks contacted the senior vice president at Cornerstone and asked, “Do you care if I get some money back at closing?” The senior vice president responded, “What the bank cares about is that the HUD-1 settlement statement shows a sales price of $850,000.”

At the direction of Fricks, a real estate closing agent created two HUD-l settlement statements:  a correct one that listed the purchase price of the property as $425,000, and a fraudulent one that listed the purchase price of the property as $850,000. Fricks forged or caused someone else to forge the seller’s signature on the fraudulent HUD-l settlement statement and then caused the fraudulent HUD-1 settlement statement and the fraudulent appraisal report to be submitted to Cornerstone. Cornerstone relied upon the false information provided by Fricks and loaned Fricks $850,000 to purchase the property. Fricks used only half of the loan proceeds for the purpose intended and used the remainder for purposes that were not authorized or approved by Cornerstone.

Approximately two years later, in October 2006, Fricks contacted the same senior vice president at Cornerstone and stated that he wanted to borrow more money against the property. Fricks paid the same appraiser $1,000 to re-appraise the property and once again directed the appraiser to fraudulently inflate its appraised value. Fricks also gave the appraiser another $100 tip. The appraiser provided Fricks with a new appraisal report, which fraudulently stated that the market value of the property was $1,433,000. Fricks caused the new appraisal report to be sent to Cornerstone, knowing that it was fraudulent. The new appraisal was more than 40% higher than the previous appraisal conducted by the same appraiser just two years earlier. As a result of this new appraisal, Cornerstone released the additional collateral pledged by Fricks when the loan was originated in 2004, consisting of five real properties and the guaranty of Fricks Properties, a company owned by Fricks.

In November 2006, in reliance upon the false and misleading information and documents provided by Fricks and his unindicted co-conspirators, Cornerstone loaned Fricks an additional $177,000.  Fricks did not repay the loans, and the bank foreclosed on the property.

Fricks, 65, of Nashville, Tennessee, pleaded guilty before U.S. District Court Judge Harold L. Murphy. Sentencing for Fricks will be August 14, 2015, at 1:30 p.m.

This case is being investigated by the Federal Bureau of Investigation with the assistance of the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP).

Assistant United States Attorney Russell Phillips 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 Rome Division is http://www.justice.gov/usao-ndga.

ROME, Ga. - Brian Cannon, Terry Peace and Cory Williamson have pleaded guilty to conspiring to use weapons of mass destruction—specifically, pipe bombs—in attacks against federal government agencies.

“This case is a startling example of militia activists reaching true extremes, as distrust and hatred of government led these defendants to arm themselves, plan attacks against federal agencies, and seek out explosives to attack a local police department,” said Acting U.S. Attorney John Horn.  “While this level of extremism is fortunately rare, this case illustrates the threats to all our safety that arise from people who turn their hatred into actions.”

“Through the FBI led Joint Terrorism Task Force (JTTF), the FBI and its various law enforcement partners remain vigilant in identifying, investigating and presenting for prosecution individuals such as those seen in this case that would conspire to do harm to the U.S. and its government infrastructure,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office. “The FBI asks that anyone with information regarding such matters to immediately contact their nearest FBI field office.”

According to Acting U.S. Attorney Horn, the charges and other information presented in court:  In January and February 2014, Cannon, Peace and Williamson participated in Internet chat rooms frequented by militia members and others with a shared anti-government ideology.  During the chat room conversations, Cannon, Peace, and Williamson discussed starting a revolution against the federal government by conducting an attack aimed at the infrastructure supporting the Transportation Security Administration, the Department of Homeland Security and the Federal Emergency Management Administration.

According to their conversation, their goals included forcibly removing government officials who the defendants believed acted beyond the scope of the U.S. Constitution.  During one of the online conversations, Peace said they would launch the attack between February 1, and February 15, 2014.  He encouraged the militia members to review guerilla warfare tactics, accumulate supplies and prepare their families.  By February 1, 2014, Cannon and Williamson had moved to Georgia and were living with Peace at his Rome, Georgia residence.

Cannon, Peace and Williamson targeted the infrastructure supporting their federal agency targets because they believed this would reduce the amount of unnecessary casualties and make it difficult for the government to respond to their attack.  The men decided to launch the first attack in Georgia to prompt militia members in other states to begin attacks in their respective states.

Unbeknownst to the defendants, a participant in the chat rooms became alarmed at their plans, informed the FBI of the attack against the government and agreed to assist in this investigation.

On February 8, 2014, Peace asked the cooperating witness to provide twelve pipe bombs and two thermite devices to use in their attack.  Peace said he wanted the pipe bombs designed for “maximum fragmentation” and thermite devices capable of penetrating the engine block of a military-grade armored vehicle.  Peace, Cannon and Williamson then made plans to meet with the cooperating witness after the pipe bombs and thermite devices were constructed. 

On February 15, 2014, the defendants, armed with numerous firearms, drove from Peace’s residence to meet with the cooperating witness at a location in Cartersville, Georgia, to pick up the pipe bombs and thermite devices.  Prior to their arrival, the cooperating witness was provided with twelve inert pipe bombs and two inert thermite devices.  The three defendants were arrested as they were taking possession of the items.  While their online conversations reflected attacks on federal targets, the defendants planned to use the thermite device at a local police department.

Sentencing for Terry Peace, 47, Brian Cannon, 37, and Cory Williamson, 29, all of Rome, Ga., is scheduled for August 7, 2015, at 1:30 p.m., before United States District Judge Harold L. Murphy.

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

Assistant United States Attorneys Tracia M. King and Ryan K. Buchanan are prosecuting the case.

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

ATLANTA - The United States Attorney’s Office for the Northern District of Georgia has reached a settlement agreement with McPal, Inc., a franchisee of McDonald’s, to resolve an investigation into allegations that it violated Title III of the Americans with Disabilities Act (“ADA”) by failing to allow the use of a service dog by a person with a disability.

“This settlement agreement ensures that those who are assisted by service animals will enjoy the same service as all citizens, and we hope it ensures that the same will occur at other restaurants as well,” said Acting U.S. Attorney John A. Horn.

The investigation in this matter was initiated by a complaint filed with the United States, alleging that the complainant’s son is an individual with a disability who uses a service dog for assistance. The complainant and her family visited a McDonald’s restaurant in Canton, Georgia and were met by a restaurant manager who refused to allow the service animal into the establishment. Despite the complainant’s explanation that the dog was a service animal, the manager insisted that the animal could not remain in the facility. 
 

Under the settlement agreement that the government has reached with McPal, the McDonald’s franchisee agreed that it will provide at least one hour of training regarding the ADA to its customer service employees and that it will also provide each employee a copy of its Service Animal Policy. All new employees will also receive this training.

The ADA defines a service animal as any guide dog, signal dog, or other animal individually trained to provide assistance to an individual with a disability. Under the ADA, privately owned businesses that serve the public are prohibited from discriminating against individuals with disabilities. The ADA requires these private businesses, such as restaurants, to allow service animals to accompany people with disabilities in all areas of the facility where the public is normally allowed to go. 
         

Assistant United States Attorneys Aileen Bell Hughes and Cynthia B. Smith represented 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 is http://www.justice.gov/usao-ndga.

ATLANTA - Cecil K. Clark has pleaded guilty to conspiracy to commit bribery of a public official while working for a janitorial services company from 2006-2010.

“Clark attempted to circumvent the process which provides companies an opportunity to bid fairly on government contracts, and in doing so his scheme exposed a corrupt public official who was willing to put his own interests above those of the taxpayers he served,” said Acting U.S. Attorney John Horn.

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “This plea clearly illustrates that the FBI will pursue not only those public officials engaged in corrupt activities but also those individuals who entice or otherwise conspire with those officials in their corrupt and criminal activities.  The FBI considers public corruption as a priority investigative program and asks that anyone with information regarding such matters to contact their nearest FBI field office.”

“When bidding on government contracts, there are strict guidelines and processes that must be followed.  Clark utilized a corrupt public official to obtain a lucrative contract without following the law and is now being held accountable,” said Vernon Keenan, Director of the Georgia Bureau of Investigation.

According to Acting U.S. Attorney Horn, the charges and other information presented in court: Cecil Clark worked for a company, identified as “Company A,” that sought to do business with both DeKalb County and the Georgia World Congress Center (GWCC).  Clark facilitated payments through his company to provide a public official a furnished luxury apartment in Atlanta, Georgia. The official who lived in the apartment was Patrick Jackson.

Jackson was simultaneously employed by both DeKalb County and the GWCC as the manager of janitorial services from approximately 2006-2012. Jackson did not disclose to either employer that the company Clark worked for, Company A, provided him with an apartment.  In exchange for the apartment, Jackson used his position as a public official to benefit the interests of Company A in its business dealings with DeKalb County and the GWCC.  Jackson previously pleaded guilty to accepting the bribes and is scheduled for sentencing on July 16, 2015 at 9:30 a.m.

Sentencing for Cecil K. Clark, 55, of Jonesboro, Georgia, is scheduled for July 31, 2015, at 9:30 a.m., before United States District Judge William S. Duffey Jr.

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

Assistant United States Attorneys Jamie L. Mickelson and Kamal Ghali are prosecuting the case.

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

ROME, Ga. - Taurus Centaur has been sentenced to six years in prison for engaging in a counterfeit check scheme through which he purchased thousands of dollars in jewelry and consumer goods with counterfeit checks.

“The defendant traveled from state to state, using a stolen identity to pass bad checks to purchase luxury items,” said Acting U.S. Attorney John Horn.  “This case serves as a reminder that in this day of sophisticated cybercrime and Internet-based identity theft, there are still traditional, paper-using fraudsters and counterfeiters who prey on unsuspecting citizens and businesses.”

“This case validates the impact of identity theft and check fraud on our communities.  Today’s sentence should serve as a reminder that criminals will not get away with taking advantage of unsuspecting victims without bearing the consequences,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.

According to Acting U.S. Attorney Horn, the charges and other information presented in court: From October 2011 until April 2014, Centaur traveled in states along the East coast of the United States—Georgia, South Carolina, Tennessee, North Carolina, West Virginia, Pennsylvania, Maryland, and New Jersey—purchasing jewelry and other consumer goods with counterfeit checks and, in some instances, pawning the purchased items for cash.

In executing this scheme, Centaur assumed the identity of an individual in custody with the Virginia Department of Corrections and presented checks bearing that individual’s name at various stores.  To assume the name, Centaur forged a “Release Certificate” in the name of the prisoner, used that forged document to obtain a legitimate copy of the prisoner’s birth certificate from the Maryland Division of Vital Records, and then used that birth certificate to request a Social Security card in the name of the prisoner.

Centaur’s spending spree came to an end on April 12, 2014, when he was arrested by the Cartersville, Georgia, Police Department during a traffic stop related to active warrants for his arrest.  Inside Centaur’s vehicle, law enforcement found, among other things: a check embossing machine, a typewriter, and counterfeit cashier’s checks.

Taurus Centaur, 48, of Dallas, Texas, was sentenced to a term of imprisonment of six years and ordered to pay restitution in the amount of $172,465.10.  He was also ordered to serve three years of supervised release, and the court imposed special conditions of supervised release, including that Centaur may not possess any device-making materials which could be used to manufacture counterfeit instruments, such as computers and printers, without permission of the United States Probation Officer.

This case was investigated by the United States Secret Service.

Assistant United States Attorney Samir Kaushal prosecuted the case.

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

ATLANTA - Shawnston Beaudoin has been sentenced to 22 years in federal prison for producing child pornography.

“Producing child pornography is an unspeakable crime,” said Acting U.S. Attorney John Horn. “Beaudoin preyed on the vulnerable and innocent of our society for his own personal pleasure.  This office’s Project Safe Childhood program is dedicated to searching out and prosecuting anyone who victimizes children to contribute to the child pornography market.”

“Those who collect and distribute child pornography victimize and exploit the children in those images again with each re-distribution. To have an individual such as Mr. Beaudoin, who was actually producing child pornography, off of our streets is a major step toward protecting our community’s children from those who would prey on them,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.

According to Acting U.S. Attorney Horn, the charges and other information presented in court: In February 2014, the FBI received information that Shawnston Beaudoin was collecting and distributing child pornography. On March 5, 2014, FBI agents executed federal search warrants at Beaudoin’s apartment and at a business that he managed in Kennesaw, Georgia. Beaudoin initially admitted to having child pornography but denied having any inappropriate contact with a child. He agreed to take a polygraph test to support his claim.

During the polygraph test, his answers to key questions indicated that he was being deceptive. At that time, he admitted to FBI agents that they would find homemade pornographic images of young girls on his computers. The forensics analysis of his computers revealed that he had personally produced pornographic images of three different children between 2005 and 2013.

Shawnston Beaudoin, 31, of Kennesaw, Georgia, has been sentenced to 22 years in prison to be followed by lifetime supervised release.  Beaudoin was convicted on these charges on March 4, 2015, after he pleaded guilty.

This case was investigated by the Federal Bureau of Investigation.

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

This case 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 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 – Former Gwinnett County, Georgia, lawyer Michael Rene Berlon has been sentenced to five years, three months in prison for stealing more than $2 million from clients of his former law firm and using it for his own benefit.

“The defendant was a respected member of the community and held an important position of trust.  Where most lawyers conscientiously live up to this trust, Berlon instead violated it by stealing large sums from his clients for his personal gain with little regard for how it affected those who trusted him with their money,” said Acting U.S. Attorney John Horn.

“While offering up his services as an attorney, Mr. Berlon outright stole from his clients.  This sentence now holds him accountable for his senseless and greed based criminal conduct,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.

According to Acting United States Attorney Horn, the charges and other information presented in court: Berlon was a solo practitioner in Grayson, Georgia, and the owner of the Law Office of Michael R. Berlon. Over the course of nearly six years, from 2008 to 2014, Berlon obtained more than $2 million in client funds. He usually obtained those funds by either telling the clients that he would hold the funds in a trust for safe-keeping, or that he would use the funds to resolve a financial or legal problem on the client’s behalf. Instead, Berlon used the funds for his own benefit, including making personal purchases and paying travel expenses, and, in some instances, repaying other clients.

In one instance, Berlon obtained money from two individuals who were looking for his assistance with starting a new business. Berlon told the victims that he would help them get a loan, but that they had to provide a percentage of the requested loan amount as a down payment. Instead of assisting them with obtaining a loan, Berlon used the funds for his personal expenses and debts. As part of his plea agreement, Berlon agreed to pay restitution of more than $2 million to fifteen different individuals.

Michael Rene Berlon, 55, of Loganville, Georgia, has been sentenced to five years, three months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $2,009,542.81. Berlon was convicted of wire fraud after pleading guilty on February 25, 2015.

This case was investigated by the Federal Bureau of Investigation.

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 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 - George Borbas, Randy Webman, Larry Webman, and Dara Webman have all pleaded guilty to 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 Lilburn, Georgia.

“These defendants came to Georgia for the sole purpose of profiting personally from the sale of prescription narcotics to addicts and drug dealers, without regard to the safety and well-being of our community,” said Acting U.S. Attorney John Horn. “Trafficking in prescription pain killers and other pharmaceuticals continues to be a top public safety issue in Georgia, leading to record levels of overdoses and addiction as well as a disturbing resurgence in heroin use by addicts who transition from abusing prescription pain killers.”

“The arrest of these defendants led to the dismantlement of an organization responsible for the illegal distribution opiate-based analgesics and other controlled substances,” said Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division.  “This case is a perfect example of the success that can be achieved when federal, state and local resources are combined to present a united front.”

“The integrity of the medical profession must be protected from criminal enterprises and those who seek to illegally profit by pretending to provide legitimate medical services,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, Internal Revenue Service Criminal Investigation. “Our communities need assurance that medical professionals who lack integrity and engage in illegal activities will be held accountable for their actions. The guilty pleas today are just one example of how IRS Criminal Investigation and the law enforcement community work together to reassure the public.

“I would like to thank all of our law enforcement partners who helped dismantle and prosecute those responsible for operating this illegal enterprise.  While the pill mill was operating in our town, it unlawfully dispensed thousands of powerful pain killers into the streets, poisoning our community.  After the removal of this pill mill, our business corridor returned to a legal boulevard of opportunity, devoid of the proliferation of illegal dispensing of prescription drugs,” said Bruce Hedley, Chief of Police, City of Lilburn, Georgia.

“We always stand ready to partner with our federal agencies to combat the growing problem of prescription drug diversion. These close working relationships are imperative in this type of multi-jurisdictional and complex drug investigations,” said Director B.W. Collier, North Carolina State Bureau of Investigation.

According to Acting 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 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.  The clinic’s physician allegedly saw a customer only at the initial visit, at which time he conducted a brief examination.

On return visits, a customer rarely saw the clinic’s physicians, but instead was able to obtain additional prescriptions for controlled substances allegedly based solely upon an exam by another clinic employee.  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, and Larry Webman and Randy Webman personally used that money to promote the clinic’s ongoing illegal activity by, for example, purchasing an MRI machine.

     The defendants in this case are as follows:

• George Borbas, 46, of Raleigh, North Carolina, pleaded guilty to drug trafficking conspiracy.

• Randy Webman, 62, of Hollywood, Florida, pleaded guilty to drug trafficking conspiracy and engaging in a money laundering conspiracy.

• Larry Webman, 66, of Hollywood, Florida, pleaded guilty to drug trafficking conspiracy and engaging in a money laundering conspiracy.

• Dara Webman, 31, of Hollywood, Florida, pleaded guilty to using the mail to illegally distribute drugs.     

George Borbas will be sentenced on September 23, 2015, at 11:00 a.m.  Randy, Larry, and Dara Webman will also be sentenced on the same day at 2:00 p.m.  All defendants will be sentenced by United States District Judge Steve C. Jones.  Dr. George Williams and Liz Troncoso are presently awaiting trial.

Criminal charges remain pending against the clinic physician, Dr. George Williams, for prescribing controlled substances outside the course of professional medical practice, and without a legitimate medical purpose.  Charges are also pending against another clinic employee, Liz Troncoso, who is alleged to have conducted exams of patients seeking pills instead of Dr. Williams.  Dr. George Williams and Liz Troncoso are presently awaiting trial.

This case is being 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 Attorney Laurel Boatright prosecuted the case.

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

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the 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 - Ardonus “Donna” Perkins, the former Assistant Vice President of Risk Management of the Credit Union of Georgia, has pleaded guilty to a charge of mail fraud for causing the credit union to disburse over $300,000 in fraudulent loans.

“This now former credit union executive used her institutional knowledge of the financial system to concoct a multi-faceted fraud scheme to steal money from the credit union,” said Acting U.S. Attorney John Horn.  “The Department of Justice and our law enforcement partners will vigorously investigate and prosecute those engaged in fraud that threatens the integrity of the banking system.”

“The United States Secret Service will continue to take an aggressive approach to arrest individuals who violate the trust of businesses 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 Acting U.S. Attorney Horn, the charges and other information presented in court: From January 2008 through August 2010, Perkins, who was the Assistant Vice President of Risk Management for the Credit Union of Georgia, used the names of unknowing family members and friends to open signature loans and true lines of credit at the credit union, which are open-ended personal lines of credit.  Perkins took the funds obtained from these fraudulent loans for her own personal use.  She also secretly refinanced automobile loans without the auto owner’s knowledge, consent, or authorization, and took those proceeds.  Additionally, Perkins established fraudulent VISA accounts in the names of family members and friends and received cash advances on those accounts without their knowledge.   

Perkins’ fraud scheme went undetected at the Credit Union of Georgia until she was fired in 2010 for policy violations.  She continually increased the loan limits and available credit limits on the fraudulent loans to obtain more funds.  In an effort to conceal and continue her scheme, Perkins used some of the money she fraudulently received to make payments on some of the loans, lines of credit, and credit card accounts that she had fraudulently established in the names of others.  To further conceal her scheme, Perkins directed the monthly statements of the fraudulently established accounts to her personal post office box.  As a result of Perkins’ scheme, the Credit Union of Georgia lost more than $300,000.

Sentencing for Ardonus “Donna” Perkins, 40, of Atlanta, Georgia, is scheduled for July 30, 2015, at 10:00 a.m. before United States District Judge Mark H. Cohen.

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

Assistant United States Attorneys Loranzo M. Fleming and Jeff A. Brown are prosecuting the case.

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

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the 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 – Fabian Terran Murray, a/k/a “Shooter,”--one of five men charged in two related cases involving the pimping of three 14-year-old girls and a 16-year-old girl at hotels in Atlanta, Georgia, and elsewhere-- was sentenced to 17 years, nine months in federal prison.  This sentencing brings to a close the prosecution of the two sex-trafficking conspiracies.

Defendants Joshua Thomas Hill, also known as “Cash,” Clinton Saintvil, Richard Douglas King, also known as “Ready,” and Jonathan Branch, were previously sentenced on July 10, 2014, July 14, 2014, and August 1, 2014.

“These men pimped girls as young as 14 years old, who they knew to be runaways and especially vulnerable,” said Acting U.S. Attorney John Horn.  “The coordinated efforts of federal and local law enforcement officers, together with the courage of these young trafficking survivors, rescued four teenage girls from the horrific victimization cycle and restored them to safety.”  

"The sentencing of Fabian “Shooter” Murray continues to mark the successful collaboration of Atlanta area law enforcement in aggressively addressing the juvenile sex industry as well as the trafficking of these juveniles in support of that industry,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.  “The FBI led Metro Atlanta Child Exploitation (MATCH) Task Force, consisting of experienced law enforcement officers and agents working together across many jurisdictional boundaries,  credits its many successful investigations and resulting prosecutions through not only the sharing of information but by also combining resources and assets.  The defendants in these cases represent not only the successes of this task force but also the need for it.”

According to Acting United States Attorney Horn, the charges, and other information presented in court:  The defendants were indicted in two related cases on charges of conspiracy to commit and commission of sex trafficking of a minor. The investigation that led to these indictments is described as follows:

U.S. v. Hill, Murray, and Saintvil

On February 19, 2012, Hill, Murray, and Saintvil met two 14-year-old girls, A.C. and O.M., at a park in Marietta, Georgia.  The girls told the men that they were runaways.  Hill, Murray, and Saintvil drove the girls to a nearby convenience store where they purchased condoms.  When Hill and Murray entered the store, Saintvil told the girls that they would be working for the defendants as prostitutes.  After leaving the convenience store, the men drove the girls to an extended stay hotel.  Hill and Murray caused A.C. and O.M. to commit commercial sex acts at various hotels in the Atlanta metro area, soliciting clients for the girls on the website “Backpage Atlanta.”  Saintvil drove the girls to the various locations where they engaged in commercial sex acts.  On one occasion, Hill and Saintvil drove A.C. and O.M. to meet a male client at a high-rise condominium in Midtown Atlanta.  Cobb County, Georgia, Police Department officers discovered the girls on February 22, 2012, during a search of a hotel room.

During this same time, Hill and Saintvil also caused a third 14-year-old girl, M.Q., to engage in prostitution. Sometime in or about February 2012, Hill engaged in sex acts with the girl, after which he told her that she would be committing commercial sex acts for Hill. Saintvil transported Hill and the girl to various hotels where Hill caused her to engage in prostitution. Marietta, Georgia, Police Department officers found the girl with Hill on February 10, 2012, at a local motel.

U.S. v. Murray, King, and Branch

Additionally, Murray, King, and Branch engaged in conspiracy to commit, and commission of, sex trafficking of J.B., a 16-year-old girl, who the defendants knew was a runaway from New York.  On or about June 30, 2012, Cobb County Police Department officers received a call from J.B., who reported that she was being held against her will. An FBI Special Agent and a detective with the Cobb County Crimes Against Children Unit immediately met with the girl, who told the investigators that she met Murray and King in May 2012. Murray took the girl to an apartment and soon after began, with King, to cause her to engage in prostitution at truck stops on Fulton Industrial Boulevard, and at various motels, in Atlanta.  The men used the website “Backpage Atlanta” to solicit clients for the girl. Branch drove J.B. to the various locations where Murray and King trafficked her.

Sentences Imposed

• Murray, 27, of Tifton, Georgia, pleaded guilty on April 18, 2014, to conspiracy to commit, and commission of, sex trafficking of a minor and was sentenced by United States District Judge William S. Duffey, Jr. to 17 years, nine months in federal prison, followed by five years of supervised release.

• Branch, 24, of Atlanta, Georgia, pleaded guilty on October 13, 2013, to conspiracy to commit sex trafficking of a minor and was sentenced to five years, ten months in federal prison, followed by five years of supervised release.

• Saintvil, 27, of Miami, Florida, pleaded guilty on February 2, 2014, to conspiracy to commit sex trafficking of a minor and was sentenced to six years, six months in federal prison, followed by five years of supervised release.

• Hill, 27, of Atlanta, Georgia, also pleaded guilty on April 18, 2014, to conspiracy to commit sex trafficking of a minor and was sentenced to 16 years in federal prison, followed by five years of supervised release.

• King, 27, of Atlanta, Georgia, pleaded guilty on April 29, 2014, to sex trafficking of a minor and was sentenced to 14 years in federal prison, followed by 5 years of supervised release.

All the defendants must register as sex offenders as a condition of their supervised release.  In addition, Murray, Hill, and Saintvil must pay restitution of $1,000 to minors O.M. and A.C.; Hill and Saintvil must pay restitution of $3,000 to minor M.Q.; and Murray, King, and Branch must pay restitution of $1,000 to minor J.B.

This case was investigated by the Federal Bureau of Investigation’s Metro Atlanta Child Exploitation Task Force with assistance from the Cobb County Police Department’s Crimes Against Children Unit, the Marietta Police Department, and the Cobb County District Attorney’s Office.

Assistant United States Attorneys Richard S. Moultrie, Jr. 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 home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.

GAINESVILLE, Ga. - David M. Treadwell and Austin Herring have pleaded guilty in separate cases to criminal charges arising from corrupt actions they took when they were employed by the Hall County Sheriff's Office. Treadwell pleaded guilty to accepting a bribe to tip off a person he believed was a drug dealer, if the person came under investigation by Hall County law enforcement. Herring pleaded guilty to attempting to possess cocaine with intent to distribute.

“Both of these defendants breached the trust of the people of Hall County by taking actions that—had they occurred outside the context of an undercover investigation—could have endangered others or permitted other crimes to occur,” said Acting U.S. Attorney John A. Horn. “Each defendant has now forfeited his career in law enforcement, and could face prison as a result of his corrupt actions.”

“Ethics and integrity is paramount for those working within law enforcement due to the many temptations that can arise and lead to an officer violating their oath of office as well as the law,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.  “These guilty pleas represent two cases where two promising law enforcement officers gave in to those temptations and now face serious consequences for their criminal actions.”

“Few crimes are as reprehensible as those committed by officers who violate the very laws they are sworn to uphold,” said Hall County Sheriff Gerald Couch.  “The actions of David Treadwell and Austin Herring undermines the efforts of all law enforcement that honorably perform their duties.”     

According to Acting United States Attorney Horn, the charges, and other information presented in court: In late 2014, while Treadwell was employed as a deputy sheriff with the Hall County Sheriff's Office, he accepted $200 or $300 on five occasions from a person he believed was a drug dealer.  In exchange for the money, Treadwell agreed to alert the drug dealer if Treadwell learned that the drug dealer was under investigation in Hall County.

In February 2015, while Herring was employed as a jailer with the Hall County Sheriff's Office, he was paid $500 on two occasions to take a package he was told contained cocaine to an inmate inside the jail. On each occasion Herring took the package to the inmate who was cooperating with the investigation. The inmate then turned the package over to investigators. Herring did not open or tamper with either package, but on each occasion he was specifically told by the person who gave it to him that the package contained cocaine from Mexico. In actuality, neither package contained a controlled substance.

David M. Treadwell, 33, of Gainesville, Georgia, and Austin Herring, 19, of Murrayville, Georgia, have both been fired by the Hall County Sheriff's Office.

Both cases are being investigated by the Federal Bureau of Investigation with assistance from the North Georgia Major Offenders Task Force which includes deputy sheriffs from the Hall County Sheriff's Office.

Assistant United States Attorney William L. McKinnon, Jr. is prosecuting both 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 Gainesville Division is http://www.justice.gov/usao/gan/.

ATLANTA – Marc Bess, a former transportation security officer with the Transportation Security Administration, has pleaded guilty to theft of government funds after he faked an abdominal cancer diagnosis and forged doctor’s notes in order to receive donated leave hours from his TSA coworkers.

“Bess deceived his coworkers, who donated their own paid vacation time out of concern for their colleague, so he could take time off from work at the public’s expense,” said Acting U.S. Attorney John Horn. “He made the mistake of faking a doctor’s note from a physician who had died months earlier. His repeated lies over five years betrayed not only his coworkers but also the passengers he was charged with protecting.”

“Mr. Bess' thoughtless actions to defraud his fellow employees was indeed despicable; he betrayed the general trust of many compassionate TSA employees, who were willing to donate their hard-earned leave in support of a fellow employee,” said James E. Ward, Special Agent in Charge, DHS - Office of Inspector General.   “We are pleased with Mr. Bess’ guilty plea, and the acknowledgment that he will be held responsible for his treachery.”

According to Acting U.S. Attorney Horn, the charges and other information presented in court: The TSA offers a Voluntary Leave Transfer Program to its employees, which permits them to donate paid leave hours to other employees in cases of emergency. In order to be eligible to receive donated leave hours through this program, employees must submit a written application describing the nature and severity of their medical emergency with supporting documentation from the treating physician.

Bess was a TSA employee at Hartsfield-Jackson Atlanta International Airport. Between September 2009 and January 2014, Bess submitted three written applications to the TSA falsely claiming that he was receiving treatment for lymphoma cancer in the abdominal area. In support of these applications, Bess forged the signature of a physician in letters he drafted that described phony radiation therapy and surgical treatments for the fake cancer diagnosis. Based on these false applications, Bess became eligible to receive donated leave hours from coworkers. In reality, Bess has never been diagnosed with or treated for cancer.

Bess also submitted periodic forged physician’s notes to the TSA from 2009 through December 2014 describing fake cancer treatments in support of his requests for additional paid leave hours. Two of the forged letters that were purportedly written by the physician were dated several months after the physician died in July 2014.

In total, Bess received approximately 2240 hours of paid leave hours donated by other federal employees over a five-year span based on his false claim of cancer. Based on these donated hours, the TSA paid Bess approximately $60,000 in salary and benefits while he took time off from work. Bess resigned from the TSA in January 2015 after his fraud was exposed.

Bess, 42, of Atlanta, Georgia, pleaded guilty before U.S. District Court Judge Mark H. Cohen. Sentencing for Bess is scheduled for July 24, 2015, at 10:00 a.m.

This case is being investigated by the Department of Homeland Security, Office of the Inspector General.

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 - Raytosha Elliott, a former contracting official with the Georgia National Guard, has pleaded guilty to awarding contracts in exchange for illegal kickbacks.  Elliott used her position to award numerous contracts under $5,000 to vendor companies created by her friends and associates.

“Ms. Elliott abused her position with the Georgia National Guard by awarding no-bid contracts to her friends in exchange for illegal kickbacks,” said Acting U.S. Attorney John Horn.  “She and one friend alone pocketed nearly $75,000 in funds that were intended to maintain facilities supporting those who serve this country.”

“This guilty plea should send a message that there is a price to pay for such a betrayal of trust as seen in this case. This case also represents the FBI’s commitment to those investigations that protect the integrity of government funds and assets,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.

“The Government relies on the honesty and integrity of its officials engaged in contracting and procurement," stated John F. Khin, Special Agent in Charge, Southeast Field Office, Defense Criminal Investigative Service.  “This guilty plea by a corrupt National Guard employee who misused her position was the result of DCIS' joint efforts with our Federal and State law enforcement partners to investigate corruption within the contracting process.”

“IRS Criminal Investigation will continue to provide its investigative resources and expertise in exposing fraud schemes like the one Elliott orchestrated,” said Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation.

“We hope this case serves as a deterrent to those who desire to pilfer the State and Federal governments’ coffers.  We also believe this case exemplifies how multiple agencies can work together to achieve a common goal: to serve the public who depends on us to defend the integrity of government programs,” said Deb Wallace, State Inspector General, Georgia Office of the Inspector General.

According to Acting U.S. Attorney Horn, the charges and other information presented in court:  From May 2007 through April 2012, Elliott worked for the Georgia Department of Defense, the state agency charged with coordinating and supervising all agencies and functions of the Georgia National Guard.  Elliott worked as an Engineering Operations Manager out of the Clay National Guard Center, located at Dobbins Air Reserve Base, in Marietta, Georgia.

In that position, Elliott worked with engineering firms to develop bid-ready construction projects, prepared bid documents, and oversaw no-bid purchase orders.  Under the rules governing the contracting process that Elliott oversaw, projects that cost less than $5,000 did not need to go through a competitive bidding process, allowing Elliott to award the contracts.  She certified that the work had been completed for those projects, and facilitated payment to the vendors who allegedly completed such projects.

In that position, Elliott awarded numerous contracts under $5,000 to vendor companies created by her friends and associates, including co-defendant Lakeysha Ellis.  In return, Ellis paid Elliott kickbacks, equal to 50% of the value of the contracts, for steering the contracts to Ellis’ vendor company, Total Source Solution, LLC.  Elliott falsely certified that work had been completed when, in fact, it had not.

Elliott awarded Total Source Solution 17 contracts with a total value of approximately $75,000.  Those contracts were for a variety of services supposedly to be performed by Total Source Solution, including electrical work, landscaping, and HVAC work.  But the work was never done.  Instead, the defendants split the money awarded under these contracts and spent it on personal items, including travel, meals, merchandise, and even liposuction treatment for Ellis.  As part of the scheme, Elliott owned a company named Tech Group Investments, LLC.  Ellis took money she had obtained from the Georgia National Guard contracts, and paid kickbacks to Elliott through this company.

Elliott and Ellis conducted a similar fraud scheme from January 2009, through May 2011, when Ellis was an accountant at Baumueller-Nuermont Corporation, an industrial equipment company with offices in Atlanta.  Her job responsibilities included payroll and paying vendors. While employed as Baumueller-Nuermont’s accountant, Ellis fraudulently funneled money to the defendants’ two sham companies, Total Source Solution and Tech Group Investments.  Ellis wrote corporate checks to Total Source Solution, signed her name on the checks, and forged the signature of the Vice President on the checks, to ensure that the checks could be negotiated.  Ellis recorded these payments in the check registry to reflect falsely that the checks had been issued to true vendors (such as American Express) when in fact they went to Ellis’ company.

As part of the scheme, Ellis also falsified employee records in the corporation’s payroll system to disguise payments to the defendants’ two companies.  Ellis created at least two phantom employees by altering the names of real employees (by switching their first and last names) and slightly changing their Social Security numbers.  She then caused the payroll system to make fraudulent salary payments to Total Source Solution and Tech Group Investments for these new, non-existent employees.

Baumueller-Nuermont lost about $85,000 from this scheme.

Elliott, 35, of Atlanta, Georgia, pleaded guilty to two counts of conspiracy today.  As part of her plea agreement, Elliott has also agreed to pay restitution to WebBank based on a fraudulent loan application she submitted to the bank in September 2013.  In that application, Elliott falsely inflated Tech Group Investments’ sales and gross receipts, and provided a fraudulent federal tax return in support of those figures, to obtain the loan.

On March 27, 2014, Ellis, 37, of Atlanta, Georgia, pleaded guilty to two counts of conspiring with Elliott, to commit fraud against the Georgia National Guard and Baumueller-Nuermont.  The indictment also charges a third defendant, Angela Thicklin (f/k/a Angela Stanback Kinlaw), 44, of Atlanta, Georgia, of conspiring with Elliott and bribing a public official.  In her position at the Georgia National Guard, Elliott awarded contracts to 3M Construction LLC, which was a company owned by Thicklin.  The case against Thicklin is pending trial.

Sentencing for Elliott is scheduled for August 13, 2015, at 10:30 a.m., before United States District Judge Amy Totenberg.  Sentencing for Ellis has not yet been scheduled.

This case is being investigated by Special Agents of the Federal Bureau of Investigation; the Georgia Bureau of Investigation; the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service; Internal Revenue Service Criminal Investigation; the U.S. Army Criminal Investigation Command; and Deputy Inspectors General of the State of Georgia Office of the Inspector General.

Assistant United States Attorney Stephen H. McClain 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-ndga.

ATLANTA - Jorge Maturano and Cesar Santos have been arraigned on federal charges of murder-for-hire.  They were arrested May 6, 2015, on a criminal complaint.  Both defendants were allegedly hired to kill a member of a rival drug trafficking organization.

“These arrests demonstrate how law enforcement, working together with concerned citizens, can not only hold criminals accountable for their actions but prevent violence from occurring in our community,” said Acting U.S. Attorney John Horn. 

“Our agents responded quickly to end this alleged murder plot. This case reflects the ever present potential for violence that drug trafficking organizations bring to our community and the FBI will continue to play a role in addressing them,” stated J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.

According to Acting U.S. Attorney Horn, the complaint, and other information presented in court: Maturano and Santos were allegedly hired out of Chicago, Illinois, by a drug trafficking organization to travel to the metro Atlanta area and kill a member of a rival drug trafficking organization who was living in Clayton County, Georgia.

Jorge Maturano, 46, and Cesar Santos, 29, both of Mexico, were arrested on May 6, 2015, and both made initial appearances before United States Magistrate Judge Justin S. Anand on May 7, 2015. 

Members of the public are reminded that the criminal complaint in this matter 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.

In that this remains an ongoing investigation, anyone with information regarding this matter should contact the FBI Atlanta Field Office at (404) 679-9000

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 - John Paul Kill, the former operator of Appeal Insurance Agency, LLC, has pleaded guilty to a charge of insurance fraud.  Kill collected over $3.7 million from nearly 800 trucking companies nationwide for fraudulent cargo insurance policies.

“This defendant swindled hundreds of trucking companies into purchasing phantom cargo insurance policies,” said Acting U.S. Attorney John Horn. “Kill abused his clients’ trust and led many small businesses to operate on our roads unwittingly without proper insurance and put them at risk for catastrophic losses.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated:  “This case was about theft and greed on a large scale.  Mr. Kill displayed a complete disregard for his client companies, leaving them legally and fiscally vulnerable while allowing them to believe that they had appropriate insurance coverage.  The FBI is pleased with the role it played in bringing this case forward for prosecution and holding Mr. Kill accountable for his criminal actions.”

“I applaud Acting U.S. Attorney John Horn for his handling of this case,” said Insurance Commissioner Ralph Hudgens.  “I hope this guilty plea sends a clear signal that my office, and federal authorities, will take decisive action if we catch someone scamming Georgia consumers.”

According to Acting United States Attorney Horn, the charges and other information presented in court: Kill operated an insurance brokerage firm, Appeal Insurance Agency, LLC, in Norcross, Georgia and began offering cargo insurance policies to trucking companies in 2013.  Kill falsely represented to clients that he would bind cargo insurance policies through Lloyd’s of London. In the insurance industry, binding coverage serves as an agreement between the insurance provider and insured parties to provide insurance coverage. In reality, Kill did not bind any policies with Lloyd’s and instead pocketed the premium payments.

For a small portion of victims, Kill bound cargo insurance policies through a different company that offered less extensive coverage than what the trucking companies thought they purchased through Kill. Most of the victims received no insurance policies at all, and Kill instead attempted to pay claims for losses out of the premium payments he collected for new policies.

In total, nearly 800 trucking companies located in Alabama, Arkansas, Colorado, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Missouri, Mississippi, New Jersey, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, and Virginia paid approximately $3.75 million in premiums for these fraudulent insurance policies from 2013 through mid-2014.

Kill, 63, of Norcross, Georgia, pleaded guilty before U.S. District Court Judge Eleanor L. Ross. Sentencing for Kill is scheduled for July 10, 2015, at 10:00 a.m.

This case is being investigated by the Federal Bureau of Investigation and the Georgia Office of Commissioner of Insurance.

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-ndga.

GAINESVILLE, Ga. - William R. Beamon, Jr., a/k/a “Rusty” Beamon has been sentenced to three years, six months in federal prison for defrauding Appalachian Community Bank, in Ellijay, Georgia.  Beamon was convicted by a jury of five counts of bank fraud on December 19, 2014, after a five-day trial.

“Bank fraud is a critical problem that has hit Georgia especially hard,” said Acting United States Attorney John A. Horn.  “Georgia leads the nation in bank failures since 2008, with 88 banks failing—including Appalachian Community Bank, the bank this defendant defrauded.  These failures significantly affect the economy, making these cases important to safeguard the nation’s financial health.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The sentencing of Mr. Beamon will hold him accountable for his actions but, unfortunately, will not be able to restore the bank in which he worked for and betrayed. Bank fraud is not a victimless crime and the FBI will continue to provide extensive resources in investigating those who engage in such criminal acts.”

“Former banker Beamon, of TARP applicant Appalachian Community Bank, was sentenced to three years, six months in federal prison for raiding the bank’s inventory of foreclosed real estate when the bank was seeking a TARP bailout,” said Christy Romero, Special Inspector General for TARP (SIGTARP).  “A federal jury convicted Beamon of bank fraud.  Beamon fraudulently rented out bank-owned properties and collected rent payments for his own use, and he caused the bank to sell properties to his wife and to a shell company he controlled at severely discounted prices—prices well below what others were willing to pay.  He claims he did it to save the bank, but these transactions put the bank in jeopardy, and Beamon profited.  SIGTARP and our law enforcement partners will shut down TARP-related fraud, swindling, and self-dealing and ensure that perpetrators pay for their crimes.”

“The sentencing of Mr. Beamon reflects fitting punishment for an individual who abused his position of trust at Appalachian Community Bank for personal gain and caused irreparable harm to the institution. The Federal Deposit Insurance Corporation Office of Inspector General is firmly committed to helping ensure integrity in our nation’s banks.  We value the cooperative working relationships with our law enforcement partners that bring about such successful outcomes,” said Fred W. Gibson, Acting Inspector General, FDIC.

According to Acting U.S. Attorney Horn, the charges, and other information presented in court:  Beamon was Vice President of Appalachian Community Bank in Ellijay, Ga.  Due to its poor financial condition, Appalachian was forced to close on March 19, 2010, and the FDIC was appointed receiver.

Beamon was in charge of Appalachian’s foreclosure liquidation department.  In 2009, he represented to a real estate agent that he personally owned a house in Cumming, Georgia.  Beamon hired that agent to market and lease the property on his behalf.  In truth, however, the property was owned by Appalachian and was part of the bank’s foreclosure inventory.  Beamon’s real estate agent found someone to lease the property and negotiated a lease on Beamon’s behalf.  Beamon then deposited into his personal bank account more than $20,000 in rent payments and security deposits that he obtained by leasing out the bank’s property as if he were the owner.  Beamon also caused Appalachian to sell bank-owned properties to his wife and to a shell company that he owned—all at prices that were substantially below what other buyers were ready, willing, and able to pay the bank.

Beamon, 54, of Atlanta, Georgia, was sentenced to three years, six months in federal prison, to be followed by five years on supervised release following his prison term, a $500 special assessment, and forfeiture of all real properties involved in the offense.

This case was investigated by the FDIC Office of Inspector General; the Department of Treasury, Special Inspector General Troubled Asset Relief Program; and the Federal Bureau of Investigation.

Assistant United States Attorneys J. Russell Phillips, Douglas W. Gilfillan, 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 home page for the U.S. Attorney’s Office for the Northern District of Georgia Gainesville Division is http://www.justice.gov/usao-ndga.

ATLANTA - Brenda Michael, who embezzled more than $300,000 from Emory University by using a fake PayPal account, has pleaded guilty to wire fraud.

“Michael brazenly abused her position with Emory University by misdirecting student payments to a personal account for more than a year,” said Acting U. S. Attorney John Horn.  “Those funds were owed to the school, paid by students working on their college education.” 

According to Acting U.S. Attorney Horn, the charges and other information presented in court: Brenda Michael was employed as an administrative assistant with Emory University from 2007 through 2014. From 2012 to 2014, while enrolling students for certain classes and programs, she began directing students to make tuition and fee payments which were due to Emory University to a PayPal account. Unbeknownst to the students, the PayPal account where they sent funds was the defendant’s own personal account. She then spent the funds on personal expenses. In total, she fraudulently received more than $317,000 from her scheme. 

Sentencing for Michael, 53, of Atlanta, Georgia, is scheduled for July 8th, 2015 at 10:00 a.m. before United States District Judge Willis B. Hunt.

This case is being investigated by the Federal Bureau of Investigation. Emory University has fully cooperated in this investigation.

Assistant United States Attorney Jamie L. Mickelson 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-ndga.

ATLANTA - Daniel M. Harbison has been arraigned on federal charges of being a felon in possession of a firearm while impersonating a DEA agent after he allegedly performed a traffic stop of an off-duty Doraville police officer.

“Posing as a federal agent creates a genuine safety risk for everyone involved, as well as bystanders, especially when a firearm is present,” said Acting U.S. Attorney John A. Horn. “The event is deeply unsettling to the victim and threatens to undermine legitimate police encounters that take place every day.”

Daniel R. Salter, the Special Agent in Charge of the Drug Enforcement Administration’s Atlanta Field Division said of the case, “When Mr. Harbison pretended to be a DEA agent, he undermined the hard work and dedication of all DEA agents and the other dedicated law enforcement officers who legitimately earned their badges. His actions were exposed because of the hard work conducted by the Doraville Police Department, the Federal Bureau of Investigation’s Atlanta office and DEA. This defendant will now have to pay the price for the crimes he committed.”

“Doraville Police's ability to rapidly react to the DEA impersonator landed him where he needs to be, behind bars. Had he not stopped our officer, who knows what damage he could have done to citizens? We are thankful for both the local and Federal cooperation that will insure Harbison's activity will be fully prosecuted. It is still unknown how many victims remain, but we can say there won't be more,” said John King, Chief of Police, Doraville Police Department.

According to Acting U.S. Attorney Horn, the charges, and other information presented in court: In the spring of 2015, Harbison began impersonating a Drug Enforcement Administration (“DEA”) officer. Specifically, on April 3, 2015, in Doraville, Georgia, Harbison conducted a traffic stop of a Chevrolet Suburban by activating light-emitting diode (“LED”) lights on his vehicle similar to those of a law-enforcement vehicle, except the lights were green and possibly white instead of blue and white. Unbeknownst to Harbison, the Chevrolet Suburban was being driven by an off-duty Corporal with the Doraville Police Department. During the unauthorized traffic stop, Harbison wore a T-shirt printed with the letters “DEA,” carried what appeared to be a .45 caliber handgun in a thigh holster, and possessed an identification card purportedly issued by the DEA. The Doraville Corporal also saw that Harbison possessed a realistic gold and blue badge embossed with the letters “US.”

The Doraville Corporal told Harbison that he was a Doraville Police Officer and asked Harbison why his LED lights were green and white. The indictment alleges that in response to the question, Harbison replied that his LED lights were green and white because he was a federal officer.  The Doraville Corporal then stated that other police officers were in route to check the validity of Harbison’s law enforcement credentials – whereupon Harbison returned to his car and fled the scene.

Further investigation led Doraville and Dunwoody Police Officers to Harbison’s residence and ultimately, officers arrested him. From Harbison’s residence, police officers recovered several items, including: (a) a Springfield .45 caliber handgun, (b) a DEA T-shirt, (c) LED lights, (d) an identification card purportedly issued by the DEA, and (e) a gold and blue badge embossed with the letters “US.” Harbison has previously been convicted of a felony and as a result, could not legally possess the gun.

On April 23, 2015, a grand jury charged Harbison, 40, of Dunwoody, Georgia, with being a felon in possession of a firearm.

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, Doraville Police Department, and Drug Enforcement Administration.

Assistant United States Attorney Jeffrey W. Davis and Special Assistant United States Attorney Erin E. Sanders are prosecuting the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the 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 Medical Center of Central Georgia (MCCG) has agreed to pay $20 million to settle allegations that the hospital violated the False Claims Act by billing Medicare for more expensive inpatient services that should have been billed as less costly outpatient or observation services, the United States Attorney’s Office announced today.  MCCG is located in Macon, Georgia, and is the second largest hospital in the state.

“Overcharging the government for medical services wastes our country’s limited health care resources,” said Acting U.S. Attorney John Horn. “When a provider inflates its billings, we will aggressively seek to recover the overcharges under the False Claims Act.”

“Charging the government for higher cost inpatient services when the patient care received was outpatient or observation services causes Medicare to pay more than it should,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division.  “This department will continue its work to stop abuses of the nation’s health care resources and to ensure patients receive the most appropriate care.”

“Unnecessarily admitting patients who could have been treated in an out-patient or observation setting is not only a waste of taxpayer dollars, but a fundamental breach of trust,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta.  “Medicare beneficiaries must feel secure and know that the care selected for them is in their best interest, and not merely what will generate the most revenue for the facility.”

This settlement resolves the United States’ investigation into MCCG’s inpatient admission practices.  The government contends that from 2004 through 2008, MCCG violated the False Claims Act by knowingly charging Medicare for medically unnecessary inpatient admissions when the care provided should have been billed as less costly outpatient or observation services.  Because hospitals generally receive significantly higher payments from Medicare for inpatient admissions as opposed to outpatient or observation services, the admission of numerous patients whose care should have been billed as outpatient or observation services, as alleged here, can result in substantial financial harm to Medicare.

As part of this agreement, MCCG entered into a corporate integrity agreement with the U.S. Department of Health and Human Services – Office of Inspector General (HHS-OIG) that requires the company to engage in significant compliance efforts over the next five years.  Under the agreement, MCCG is required to retain an independent review organization to review the accuracy of the company’s claims for services furnished to federal health care program beneficiaries.

This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services.  The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.  One of the most powerful tools in this effort is the False Claims Act.  Since January 2009, the Justice Department has recovered a total of more than $24 billion through False Claims Act cases, with more than $15.3 billion of that amount recovered in cases involving fraud against federal health care programs.

The claims settled by the settlement agreement are allegations only; there has been no determination of liability.

This case was investigated by Special Agents of Health & Human Services, Office of Inspector General.

The civil settlement was reached by Assistant United States Attorney Christopher J. Huber.

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 - Ernest E. Abbott has been arraigned on federal misdemeanor charge of unlawfully entering Hartsfield Jackson International Airport and an airplane without submitting to the security requirements for all passengers as administered by Transportation Security Administration (TSA).

“The security of all airline passengers is of paramount concern,” said Acting U.S. Attorney John Horn.  “Neither FAA employees who travel for work nor any other passenger is exempt from the consequences when they fail to submit to the airport security screening process.”   

“Protecting the traveling public and maintaining public confidence in the safety of commercial air travel is of utmost importance,” said Marlies Gonzalez, Special Agent-in-Charge for the U.S. Department of Transportation’s Office of Inspector General. “Working with our Federal, State and local law enforcement and prosecutorial partners, we will vigorously pursue those who violate the law designed to protect the safety of travelers.”

According to Acting U.S. Attorney Horn, the charges, and other information presented in court: Abbott, a Federal Aviation Administration Inspector, flew from Atlanta, Georgia, to New York on January 12, 2015.  Prior to boarding his flight, Abbott used his Hartsfield Jackson International Airport employee access card to bypass TSA passenger screening.  Abbott came to the attention of TSA the very next day after a firearm was detected in his carry-on luggage when he attempted to fly back to Atlanta.  He was subsequently charged in New York with unlawfully possessing a firearm.

Ernest E. Abbott, 69, of Sugar Hill, Georgia, was arraigned before U.S. Magistrate Judge Russell G. Vineyard.  He was charged in a Criminal Information filed on April 15, 2015.

Members of the public are reminded that the Criminal Information 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 Transportation Security Administration and the U.S. Department of Transportation, Office of the Inspector General.

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

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the 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 – Sixteen defendants have been indicted for stealing over $10 million in U.S. Treasury checks from the mail and then cashing them at Walmart, Kroger, and other businesses using fake identifications.  The defendants were indicted by a federal grand jury on March 11, 2015.

“Georgia has the unfortunate distinction of being one of the worst states in the nation for stolen U.S. Treasury checks,” said Acting U.S. Attorney John Horn.  “This crime affects thousands of victims – including senior citizens, the disabled, and veterans – who go to their mailbox looking for a needed check only to discover that it has been stolen by criminals and identity thieves.  These sixteen defendants are charged with stealing over $10 million in U.S. Treasury checks in Georgia and traveling around the country to cash them.”

“Check fraud is one of the largest challenges facing financial institutions and businesses today. The United States Secret Service will continue to collaborate with its law enforcement partners to target and arrest individuals who steal from unsuspecting victims,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.

“The U.S. Postal Inspection Service is committed to protecting the U.S. Mail and taking an aggressive stance on those who violate federal statutes that protect the American Public. We value the investigative efforts with our federal partners and thank the U.S. Attorney's Office for continuing to protect innocent victims.” said Thomas Noyes, Inspector in Charge of the Charlotte Division.

“Social Security payments are a lifeline for many Americans.  We are pleased with the aggressive action by the U.S. Attorney’s Office and our law enforcement partners that resulted in these indictments,” said Special Agent in Charge Thomas Caul, SSA/Office of the Inspector General.

According to Acting U.S. Attorney Horn, the charges, and other information presented in court:  Maurice Shuler and Milton Minter are alleged to have received stolen U.S. Treasury checks that were taken from the mail before reaching their intended recipients.  The stolen checks included tax refund, Social Security, and Veteran Benefits checks.  After receiving the checks, Shuler and Minter provided them to a network of check cashers, including 14 of the defendants charged here, who negotiated the stolen checks, mainly at Walmart and Kroger stores.  The defendants used fake driver’s licenses to pose as the check payees and forged the payees’ signatures on the back of the checks.  They also used other individuals’ Social Security numbers to cash the checks.  In an effort to avoid detection, the defendants traveled to different states, including Alabama, Mississippi, Illinois, Michigan, Minnesota, Kentucky, Iowa, Louisiana, and Tennessee, to cash the stolen checks.  The defendants are charged with  cashing thousands of stolen U.S. Treasury checks worth over $10 million.

The indictment charges the following individuals with conspiracy, theft of U.S. money, and aggravated identity theft:

• Maurice Shuler, a/k/a Fred, 25, of Atlanta, Georgia,
• Gino Shuler, 27, of Atlanta, Georgia,
• Chucky Ransom, 41, of Decatur, Georgia,
• Sepater Ransom, 27, of Atlanta, Georgia,
• Damontra Ransom, a/k/a Pop, 20, of Atlanta, Georgia,
• Milton Minter, a/k/a White Boi, 31, of Riverdale, Georgia,
• Brian K. Hightower, a/k/a Big, 33, of Stockbridge, Georgia,
• Angela L. Williams, 40, of Stockbridge, Georgia,
• Charles E. Bolton, Jr., a/k/a Lightpole Jones, 26, of College Park, Georgia,
• Mariah C. Clark, 24, of Loganville, Georgia,
• Lovely Richardson, 27, of Fairburn, Georgia,
• Osiris O. Hernandez, 23, of Atlanta, Georgia,
• Kimbela Jordan, 19, of Atlanta, Georgia,
• Raymon D. Gales, 26, of Atlanta, Georgia,
• Jeremy Arnold, 28, of Riverdale, Georgia, and
• Rodrekus R. Harris, 26, of Blakely, Georgia.

The 83-count indictment was unsealed and the defendants were arraigned before U.S. Magistrate Judge Russell G. Vineyard.

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 United States Secret Service; United States Postal Inspection Service; Social Security Administration, Office of Inspector General; and Department of Justice Office of the Inspector General.

Assistant United States Attorneys Stephen H. McClain 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 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/.

ROME, Ga. - Judy Elaine Henry has pleaded guilty to wire fraud charges arising out of her theft of more than $500,000 from her former employer, Bec-Don, Inc., a company that supplies concrete reinforcing steel and related products to the construction industry.

“This defendant abused her employer’s trust by stealing money from the company account for nearly eight years, ultimately more than $500,000,” said Acting U.S. Attorney John Horn.  “Businesses have the right to expect honest services from their employees, but they should nonetheless be vigilant and adopt protocols to safeguard against internal fraud.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The guilty plea of Ms. Henry concludes the federal investigation into her eight years of embezzling from her employer.  The loss amounts in this case are significant as well as her breach of trust to those who counted on her to help oversee company funds.”

According to Acting U.S. Attorney Horn, the charges and other information presented in court:  Henry was the manager of Bec-Don’s office in Ringgold, Georgia, and was authorized to sign checks on Bec-Don’s account. From approximately 2006 through 2014, Henry embezzled more than $500,000 in company funds by writing checks payable to herself on Bec-Don’s account, and by making false entries in Bec-Don’s checkbook and accounting records to make it appear that the checks had been issued to pay legitimate company expenses. Henry deposited some of the fraudulent checks into her personal account and then used her debit card to spend the stolen money.

Henry, 50, of Lafayette, Georgia, pleaded guilty before U.S. District Court Judge Harold L. Murphy.  Sentencing for Henry will be July 10, 2015, at 1:30 p.m.

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

Assistant United States Attorney Russell Phillips 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 Rome Division is http://www.justice.gov/usao-ndga.

ATLANTA – Federal authorities have concluded an extensive public corruption and drug trafficking investigation that spanned over five years and resulted in the convictions of a Customs and Border Protection Officer from Atlanta’s airport, a DeKalb County Police Officer, and more than 10 drug traffickers who were responsible for the distribution of approximately 1 million pills of 3,4-methylenedioxy-methamphetamine (MDMA) and benzylpiperazine (BZP), a drug similar to ecstasy.

Mark Tomlinson, a/k/a “Supa,” has been sentenced to 16 years in prison, and is the final defendant in this case which involved multiple federal, state and local law-enforcement agencies.

“This case began with a Customs and Border Protection officer taking payoffs to smuggle guns and purported drug money through Atlanta’s airport, and it ended with the dismantling of a large-scale drug trafficking organization and the seizure of hundreds of thousands of ecstasy pills,” said Acting U.S. Attorney John Horn.

Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division said, “Whether the crimes being committed were public corruption, marriage fraud, or drug trafficking, the coordinated law enforcement response demonstrates how spirited law enforcement cooperation on all levels produce fruitful results. I would like to personally thank everyone who worked tirelessly to make this investigation a success.”

The Department Homeland Security, Office of Inspector General, Special Agent in Charge James E. Ward said: “Today’s announcement sends a strong message, that we remain committed with our law enforcement partners to aggressively pursue such complex investigations. We are pleased with the overall outcome of this investigation; and we will remain vigilant in pursuing the prosecution of criminals, who brazenly defy federal law.”

According to Acting U.S. Attorney Horn, the charges and other information presented in court: Beginning in late-2009, numerous federal, state, and international agencies conducted an extensive investigation into a corrupt federal and local law enforcement officer with ties to a major drug trafficking organization. The investigation led to the arrest, indictment, and conviction of more than 15 defendants.

Federal Corruption

Former Customs and Border Protection Officer Devon Samuels pleaded guilty to conspiring to launder drug money, attempting to bring guns onto an airplane, and conspiring to commit marriage fraud. The charges against Samuels centered around three undercover sting operations during which he smuggled drug money and guns through Hartsfield‑Jackson Atlanta International Airport.

More specifically, on November 3, 2010, an undercover officer (posing as a drug money launderer) gave Samuels approximately $25,000 in money represented to be from the sale of drugs. By unlawfully using his badge to bypass security and avoid screening, Samuels smuggled the money through Atlanta’s airport and onto a plane bound for Jamaica. Once in Jamaica, Samuels delivered the cash to a Jamaican undercover police officer who was posing as an international drug trafficker.

On November 19, 2010, another undercover officer gave Samuels over $50,000 in purported drug money. Samuels took the money, flew from Atlanta to Jamaica, and then delivered the money to Jamaican undercover police officers. While in Atlanta’s airport, Samuels unlawfully used his badge to bypass security and avoid being screened.

Finally, on November 30, 2010, Samuels accepted five firearms and approximately $20,000 in alleged drug money from an undercover police officer. Samuels smuggled the firearms and money into the airport by using his badge to bypass security. Once inside the airport, Samuels gave the firearms and money to a second undercover officer who had explicitly told Samuels that she was going to transport the firearms and money to Arizona for a meeting with members of a Mexican drug cartel.

On June 2, 2011, Devon Samuels, a/k/a “Smokey,” 49, of Stockbridge, Georgia, was sentenced to eight years in prison, followed by three years of supervised release.

Marriage Fraud

Beginning in November 2009, Samuels and his wife Keisha Jones (a former Delta Airlines employee) used Samuels’ intimate knowledge of immigration policies to commit marriage fraud. In that regard, Samuels and Jones taught Carlton Ferguson and Dahlia McLaren how to deceive U.S. immigration authorities into believing that Ferguson and McLaren’s sham marriage was genuine and legitimate. Samuels and Jones were also paid to falsely complete the immigration paperwork necessary for McLaren to obtain United States citizenship through her sham marriage to Ferguson. Samuels, Jones, Ferguson, and McLaren all pleaded guilty to marriage fraud conspiracy charges. After her plea, McLaren was stripped of her U.S. citizenship and removed from the United States to Jamaica.

The following individuals were convicted on the marriage fraud indictment:

• On June 2, 2011, Samuels was sentenced to five years in prison, followed by three years of supervised release.

• On June 2, 2011, Keisha Jones, a/k/a Platinum, 34, of Stockbridge, Georgia, was sentenced six months of home confinement, three years of probation, and 150 hours of community service.

• On April 11, 2011, Carlton Ferguson, a/k/a “Fergie,” 39, of Decatur, Georgia, was sentenced to three years of probation and 150 hours of community service.

• On April 11, 2011, Dahlia McLaren, a/k/a “Dahlia McLaren Ferguson,” 34, formerly of Decatur, Georgia, was sentenced to three years of probation and was removed from the United States.

Drug Trafficking

In a parallel investigation beginning in February 2010, law enforcement officers started investigating a major drug trafficking organization operating in the Atlanta-metropolitan area and in other areas across the country. The organization was led by Jerome Bushay, Otis Henry, and Mark Tomlinson.

Otis Henry was a major distributor of BZP (a drug similar to ecstasy) and marijuana who provided pills and marijuana to several lower-level drug dealers. Most notably, on October 1, 2010, law enforcement officers obtained a federal warrant to search Henry’s residence located in DeKalb County, Georgia. Inside the home, officers seized approximately 700,000 tablets of BZP – which was one of the largest domestic seizures of the drug in U.S. history. In particular, officers found the pills hidden all over the house, including in the walls of the house, behind insulation, under seat cushions, in crawl spaces, and stuffed into luggage. Officers also recovered a handgun, two pounds of marijuana, almost $40,000 in cash, and over 150 grams of methamphetamine from Henry’s residence. The street value of the pills was estimated at $2.8 million.

After agents executed the search warrant, Henry fled from authorities and remained on the run for over a year. Ultimately, in January 2012, Henry was arrested in Tampa, Florida. Thereafter, agents searched Henry’s hotel room and recovered four pounds of marijuana and $3,300 in cash.

Jerome Bushay also organized and supplied countless drug transactions sales, in addition to supervising several lower-level drug traffickers. In total, Bushay distributed over 185,000 pills. Bushay also used former Customs and Border Protection Officer Devon Samuels to transport his drug money through the airport. For example, on November 12, 2010, Bushay had Samuels smuggle $40,000 in drug money into Hartsfield-Jackson Airport. Inside the airport, Samuels used his badge to bypass airport security, which resulted in the bag not being screened. Thereafter, Samuels gave the bag to Bushay’s associate, who was destined for Texas.

On December 15, 2010, law enforcement officers executed a coordinated take-down. As part of the take-down, agents executed a search warrant on Bushay’s home, where they recovered an arsenal of weapons and cache of drug paraphernalia. Specifically, agents recovered: (1) a Cobra 9mm pistol; (2) a .40 caliber semi-automatic pistol; (3) a Bushmaster Assault Rifle; (4) a .22 caliber rifle; (5) a Sturm Ruger Ranch Rifle with a scope; (6) a Glock semi-automatic pistol with a laser sight; (7) a Sten-Type 9mm machine gun; and (8) approximately 700 rounds of ammunition, including ballistic tipped and hollow point rounds. In addition to the weapons, agents found a narcotics ledger, an electronic money counter, two digital scales, and a baseball hat with “Customs and Border Protection” embroidered on it.

Mark Tomlinson also distributed thousands of pills of MDMA and BZP, while simultaneously running Club Intrigue (a nightclub in DeKalb County). In addition, in April 2010, Tomlinson brokered a major marijuana deal, which resulted in the seizure of over $100,000. After law enforcement seized the drug money, Tomlinson and others devised a scheme to make it appear that the money was actually to pay musicians for his nightclub. On December 15, 2010, law enforcement officers searched Tomlinson’s home, where they recovered: (a) a Remington 12 gauge shotgun, (b) a Glock .40 caliber semi-automatic handgun, (c) a Taurus semiautomatic handgun, and (d) a drug ledger. In October 2014, after a one week trial, a federal jury convicted Tomlinson of conspiring to traffic MDMA, BZP, and marijuana.

The following individuals were convicted on the drug trafficking indictment:

• Mark Tomlinson, a/k/a “Supa,” 40, of Stone Mountain, Georgia, was sentenced to 16 years in prison, followed by five years of supervised release.

• Jerome Bushay, a/k/a “Romey,” 36, of Norcross, Georgia, was sentenced to 15 years in prison, followed by five years of supervised release.

• Otis Henry, a/k/a “Wesley Johnson,” 44, of DeKalb County, Georgia, was sentenced to 14 years in prison, followed by five years of supervised release.

• Conrad Harvey, a/k/a “Fowley,” 45, Snellville, Georgia, was sentenced to 10 years, one month in prison, followed by three years of supervised release.

• Roshaun Hood, a/k/a “Shaun,” 33, of Atlanta, Georgia, was sentenced to nine years, three months in prison, followed by five years of supervised release.

• Dave Grant, a/k/a “David Clarke,” a/k/a “Scratchy,” 39, of Lithonia, Georgia; was sentenced to nine years in prison, followed by six years of supervised release.

• Nigel Edwards, a/k/a “Nigel the Barber,” 37, of Stone Mountain, Georgia, was sentenced to four years, four months in prison, followed by three years of supervised release.

• Ricardo Duncan, a/k/a “Ricky,” 32, of Lithonia, Georgia, was sentenced to four years in prison, followed by three years of supervised release.

• Damien Aarons, a/k/a “Damage,” 39, of Covington, Georgia, was sentenced to three years, nine months in prison, followed by three years of supervised release.

• Jermaine Campbell, a/k/a “Fatman,” 35, of DeKalb County, Georgia, was sentenced to three years, one month in prison, followed by three years of supervised release.

• Christopher Williams, a/k/a “Eric Washington,” “Bobby,” “Beagle,” and “Apachee,” 49, of Snellville, Georgia, was sentenced to three years in prison, followed by one year of supervised release.

Local Corruption

During the course of the operation, law enforcement authorities also learned that former DeKalb County Police Officer Donald Bristol abused his law enforcement position to help drug traffickers hide a stolen vehicle; that he unlawfully accessed his police computer; and that he lied to federal agents. More specifically, starting in April 2010, Bristol helped separately-charged defendants Christopher Dixon (currently a fugitive) and Ricardo Duncan hide the fact that the car they were driving was in fact a stolen vehicle. Bristol also misused his access to a sensitive law enforcement database to provide drug traffickers with confidential information, such as whether the drug traffickers had any open warrants. Finally, when questioned about his activities, Bristol made numerous false statements to federal agents.

On October 18, 2011, Bristol, 45, of DeKalb County, Georgia was sentenced to one year and one day of incarceration, followed by three years of supervised release.

This case was investigated by the Immigration Customs Enforcement (ICE); Drug Enforcement Administration; ICE - Office of Professional Responsibility; ICE - Office of Inspector General; ICE - Homeland Security Investigation; Jamaican Constabulary Force - Anti-Corruption Branch; DeKalb County Police Department; Internal Revenue Service - Criminal Investigation; Federal Bureau of Investigation; United States Marshal’s Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; and U.S. Department of State - Bureau of International Narcotics and Law Enforcement Affairs.

Assistant United States Attorneys Jeffrey W. Davis, L. Skye Davis, and Dahil Goss 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 - Obi Emelogu and Oloh Samuel have been sentenced for their involvement in a tax refund fraud scheme in which Emelogu filed false income tax returns and directed that the fraudulent refunds be deposited into bank accounts he and Samuel controlled.

“These defendants brazenly stole money from the American taxpayers with little regard for whom they affect,” said Acting U.S. Attorney John Horn. “We have committed resources to combat this kind of theft, and will aggressively pursue and prosecute those who believe they can file false tax returns.”

“One of the Tax Division’s highest priorities is prosecuting individuals who use stolen identities to file fictitious income tax returns and claim fraudulent refunds,” said Acting Assistant Attorney General Ciraolo. “This street crime threatens the very fabric of tax administration and often victimizes the most vulnerable members of our communities. The Tax Division is committed to working with our partners in law enforcement to identify these schemes, dismantle the criminal operations and seek to incarcerate the offenders who view the Federal Treasury as their own personal bank account.”

“IRS Criminal Investigation will remain proactive in the investigation of individuals and groups especially return preparers, who engage in stealing the identities of innocent people,” said Veronica F. Hyman-Pillot, Special Agent in Charge. “We will continue to utilize every tool available to investigate those who conspire with each other to victimize members of our community for their own personal gain.”

“These sentences send a clear message that the federal government will aggressively investigate and prosecute the crime of identity theft involving stolen tax refunds,” said J. Russell George, Treasury Inspector General for Tax Administration (TIGTA). “While criminals may find it easy to steal someone’s identity using their personal information, they need to know that the punishment for committing this crime will be commensurate with the devastating toll identity theft takes on its victims.”

According to Acting United States Attorney Horn, the charges and other information presented in court: Emelogu owned and operated “O.B. Consulting and Tax Services, LLC,” a tax preparation business in Marietta, Georgia. In 2012, Emelogu filed hundreds of false tax returns claiming fraudulent refunds that were directed into his bank account. Emelgou also filed false tax returns that were deposited into a bank account Samuel controlled. Electronic evidence also showed that additional false tax returns were filed from overseas and refunds were deposited into Samuel’s bank account. Many of the tax refunds that were directed into the defendants’ bank accounts came from tax returns that used stolen names and social security numbers.

Obi Emelogu, 51, of Woodstock, Georgia, has been sentenced to three years, and nine months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $719,872. Emelogu was convicted on these charges on October 10, 2014, after he pleaded guilty.

Oloh Samuel, 33, of Acworth, Georgia, has been sentenced to one year, and six months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $146,179. Samuel was convicted on these charges on December 2, 2014, after he pleaded guilty.

This case was investigated by the Internal Revenue Service Criminal Investigation and the U.S. Treasury Inspector General for Tax Administration.

Assistant United States Attorney Thomas J. Krepp and DOJ Criminal Tax Division Trial Attorney Jason Poole prosecuted the case.

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

ATLANTA – Annamalai Annamalai, a/k/a Dr. Commander Selvam, a/k/a Swamiji Sri Selvam Siddhar, the former leader of the now defunct Hindu Temple of Georgia, has been sentenced to 27 years, three months in prison following his conviction on 34 felony counts, including bank fraud, tax fraud, bankruptcy fraud, and obstruction charges.

“Annamalai perverted the sacred institution of religion by using it as a vehicle for greed and personal profit,” said Acting U.S. Attorney John A. Horn. “He convinced his victims that they had a problem in need of spiritual guidance, and then took advantage of their vulnerabilities for personal financial gain. The sentence rendered against him is lengthy but just and fair considering the irreparable harm he caused to his victims.”

“Annamalai Annamalai, a self-proclaimed “child prodigy” and “priest”, received his fate today for the fraud that he perpetrated on the faithful followers that believed in him,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “This defendant utilized the nation’s financial system to steal money from unsuspecting victims and then used the money for his own personal benefit. This sentence is a vital element in maintaining public confidence in our legal and financial system.”

According to Acting United States Attorney Horn, the indictment, and other information presented in court: Annamalai generated income through the Hindu Temple of Georgia (“the Hindu Temple”) by charging fees to his followers in exchange for providing spiritual or related services. In a typical transaction, a follower agreed to purchase a particular service for a communicated price, and provided a credit card number by telephone to guarantee payment. Annamalai caused the followers’ credit card numbers to be charged on multiple occasions, in excess of their agreed amount and without authorization.

If the followers disputed the charges with their respective credit card companies, Annamalai submitted false documentation to the credit card companies in support of the unauthorized charges. Annamalai later filed spurious lawsuits against followers who disputed his charges and manipulated audio recordings to make it sound as if the followers had agreed to the disputed charges. Annamalai caused these manipulated audio recordings to be submitted to police departments investigating criminal complaints that were lodged against him.

The income generated by the Hindu Temple through these credit card charges was used to fund the personal lifestyle of Annamalai and his family, who owned or controlled numerous homes and real properties, luxury vehicles, and foreign bank accounts in India.

Following a two-week jury trial, Annamalai was convicted on August 25, 2014, for bank fraud and tax fraud offenses. Annamalai was also convicted of bankruptcy fraud offenses in connection with the Hindu Temple’s petition for bankruptcy protection in August 2009. Annamalai concealed assets from creditors and others by diverting credit card receipts and donations intended for the Hindu Temple to a bank account in the name of a different entity. Annamalai was also convicted of money laundering for using proceeds from the bankruptcy fraud to pay mortgages on properties that he owned, and payments to himself.

Annamalai was also convicted on three counts of obstruction and false statements in connection with the grand jury investigation and the bankruptcy proceeding. Annamalai transmitted a fraudulent email to an IRS Special Agent, which was falsely made to appear as if the email had been written and authored by a witness of the criminal investigation. Annamalai submitted a false affidavit to the grand jury, and a false affidavit to the Bankruptcy Court in connection with the Hindu Temple’s bankruptcy proceeding.

Finally, Annamalai was convicted of conspiring with his spouse and others to conceal the arrest of co-defendant Kumar Chinnathambi.

Annamalai Annamalai, 49, of Baytown, Texas, was sentenced to 27 years, three months in prison.

Chinnathambi, 34, of Baytown, Texas, was later arrested and pleaded guilty to conspiracy to commit bankruptcy fraud on July 17, 2014. He will be sentenced at a later date.

In addition to Annamalai’s prison sentence, U.S. District Court Judge Timothy C. Batten, Sr. also ordered Annamalai to not engage in any spiritual service for compensation, directly or indirectly through intermediaries; and to not file frivolous, abusive, or malicious lawsuits against (1) former customers of the Hindu Temple and related entities, and victims of his criminal schemes; (2) parties, creditors, the Trustee, lawyers, or court personnel involved in the Hindu Temple’s bankruptcy case; and (3) attorneys, government agents, the jury, and court personnel involved in the criminal case. Judge Batten also recommended to the Bureau of Prisons that Annamalai be housed in a “Communications Management Housing Unit,” which is a special facility that will be able to monitor Annamalai’s telephone calls and electronic communications from prison.

This case was investigated by Special Agents of the Internal Revenue Service Criminal Investigation, with valuable assistance from the Federal Bureau of Investigation.

Assistant United States Attorneys Steven D. Grimberg 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 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 - C.W. Matthews Contracting Company (“C.W. Matthews”), a Marietta, GA based construction firm, has agreed to pay $1 million dollars to settle allegations that it violated the False Claims Act by submitting false and misleading certifications to the Government regarding: (1) work performed on several federally funded highway construction projects; as well as (2) the company’s compliance with the U.S. Department of Transportation’s Disadvantaged Business Enterprise Program (“DBE Program”).

Additionally, C.W. Matthews has reached a separate settlement with the U.S. Federal Highway Administration, pursuant to which the company has agreed to: (1) adopt an ethics code and a corporate compliance program; (2) appoint a compliance officer; and (3) retain an independent monitor to assess its performance.

“To receive the tangible and intangible benefits that it contracts for, the United States expects companies that actively seek and obtain federally funded contracts to be diligent and forthright in fulfilling their contractual obligations to the Government,” said Acting U.S. Attorney John Horn.

The settlement concerns false certifications that C.W. Matthews provided the Government regarding its compliance with requirements associated with the DBE Program. Pursuant to the DBE Program, federally funded construction contracts contain DBE clauses, which require that a specified percentage of the work be sub-contracted to firms meeting the statutory definition of a Disadvantaged Business Entity (“DBE”).

As a precondition to bidding, a contractor must acknowledge the project’s DBE goals, and then identify the DBE that it proposes to subcontract with if awarded the contract. Additionally, DBE regulations require “real and substantial” work performed by a “viable” and “independent” DBE firm, and state that “there cannot be a contrived arrangement for the purpose of meeting DBE goals.” See, 49 C.F.R. § 26.55. The DBE Program is intended to ensure that DBEs are able to compete for federal construction contracts.

Between 2006 and 2007, C.W. Matthews was awarded several highway construction contracts that contained DBE clauses. In bidding on the contracts, C.W. Matthews promised to subcontract with a DBE firm called Longoria Trucking (“Longoria”) to satisfy the contracts’ DBE goals. As work progressed, C.W. Matthews submitted the requisite DBE Reports to the Government, which: (1) described work Longoria had purportedly performed; and (2) quantified the monetary amounts purportedly paid to Longoria.

The Government’s investigation revealed that the DBE Reports submitted by C.W. Matthews were false and misleading as, in truth, it was a non-DBE trucking firm called G.E. Robinson – not Longoria – that performed most of the work, and received most of the payments, described in the reports. Indeed, the investigation revealed that G.E. Robinson used Longoria as a “front” to obtain, and receive payment under, the applicable contracts. As a non-DBE firm, G.E. Robinson was ineligible to even bid on these subcontracts. To circumvent this restriction, G.E. Robinson assumed the identify of, and controlled, Longoria, which did little work and was paid a small fee by G.E. Robinson for its complicity.

The investigation revealed C.W. Matthews either knew, or should have known, of the scheme between Longoria and G.E. Robinson. However, despite this knowledge, C.W. Matthews continued issuing false and misleading certifications to the Government regarding Longoria’s role in the applicable highway projects.

In certifying that Longoria was performing work under the contracts, despite clear signs that the work was actually being performed by G.E. Robinson, C.W. Matthews, at minimum, was either reckless or deliberately indifferent.

This matter was investigated by the U.S. Department of Transportation – Office of the Inspector General.

Assistant United States Attorney Paris A. Wynn handled 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/gan/.

ATLANTA - Tyrone Brooks, Sr., has pleaded guilty to charges that he misappropriated almost $1 million in charitable funds from Universal Humanities, a charity he founded in 1990, and the Georgia Association of Black Elected Officials (GABEO). From the mid-1990s through 2012, Brooks solicited contributions from individuals and corporate donors to combat illiteracy and fund other charitable causes, but then used the money to pay personal expenses for himself and his family.

“Through two charitable organizations he led, Representative Brooks raised over one million dollars for the causes of illiteracy, crime and voter disenfranchisement that plague our disadvantaged communities, especially ones in poor and rural areas,” said Acting U.S. Attorney John Horn. “Sadly, Representative Brooks misappropriated nearly all of the money to pay personal expenses for himself and his family. By diverting these funds, he deprived those communities from receiving the literacy training and other assistance that they so desperately needed.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “People have a right to expect honesty and integrity from their elected officials. The FBI’s Public Corruption program plays a vital role in ensuring that any such departures from the expected honesty and integrity of public officials that result in violations of the law will be investigated. The FBI launched its investigation in this matter based on information and facts that indicated that a State elected official was using undue influence for personal gain. The FBI, in conjunction with IRS-CI, followed those facts throughout this investigation, which led to this guilty plea of former State Representative Tyrone Brooks.”

“Mr. Brooks exploited his position as representative and director of Universal Humanities and GABEO for his own personal financial gain, which came at the expense of the organizations and people he was trusted to serve,” stated Special Agent in Charge, Veronica F. Hyman-Pillot, IRS Criminal Investigation. “In addition, Brooks stole money from the American taxpayers by failing to report the income and pay taxes on the money he diverted.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: Universal Humanities Scheme

The government presented evidence at the plea hearing that from at least 1995 through 2012, Brooks solicited contributions for Universal Humanities from corporate and individual donors purportedly to combat illiteracy in disadvantaged communities in Georgia and across the southeastern United States, eventually raising more than $800,000. Donors included the Coca-Cola Company, Georgia Pacific Company, Northside Hospital, and others who gave smaller amounts. Brooks made specific false representations in his written solicitations about the work that Universal Humanities was doing to combat illiteracy; he described how the donated funds would be used, claiming that Universal Humanities had established literacy programs, conducted workshops, and tutored and mentored students. He also falsely claimed that Universal Humanities used a staff and operated under the leadership of a board of directors.

In reality, Brooks did not use the donations to promote and address literacy in Georgia or elsewhere, or to retain a staff, occupy office space, fund workshops, hire instructors, or conduct programs attended by students. Instead, Brooks used the money to pay personal expenses for himself and members of his family, including home repairs, furniture, lawn service, life insurance, entertainment, personal credit card expenses, utility bills, food and clothing, dry cleaning, electronic equipment, jewelry, and payments on personal loans, among other personal expenses.

Brooks generally accomplished the diversion of funds by depositing the solicited donations into a bank account that he established in the name of Universal Humanities, then almost immediately transferring the funds to a personal account, from which he paid personal expenses. At times, Brooks paid personal expenses directly from the Universal Humanities account.

Contrary to Brooks’ representations to donors, Universal Humanities never had a functioning board of directors. The individuals listed on the solicitations and incorporation documents were unaware that Brooks had identified them as Universal Humanities board members, and most had never even heard of the organization.

Brooks represented in a 1999 solicitation that Universal Humanities had been “so successful” in Georgia that it was expanding its programs to other states in the Southeast, and expected to have a projected budget of $500,000. In truth, Universal Humanities did not have an operational literacy program inside or outside of Georgia, nor did it have a projected budget of $500,000.

Brooks represented that Universal Humanities’ literacy program, which Brooks called “Visions of Literacy,” consisted of a host of “outlets” created to increase literacy and included activities such as seminars, workshops, tutoring, mentoring, and rallies. Brooks further claimed that Universal Humanities and its “staff had over 40 years’ experience in assisting U.S. communities through a variety of efforts,” and that 10,000 people would be the direct beneficiaries of the literacy program. In fact, Universal Humanities and Brooks did not operate a functional literacy program, did not host the literacy activities described in the solicitation, or did not have a staff.

Brooks represented in a 2011 solicitation that the Visions of Literacy program conducted monthly workshops, seminars, and advocacy outreach activities, and that the solicited funds would be used to hire retired teachers and administrators as “educational consultants” to gain targeted results. Instead, Brooks spent the funds donated in response to this solicitation on payments for personal credit card charges, personal loan payments, utility bills, and a $500 check to a family member as a Christmas gift.

Unbeknownst to GABEO, Brooks represented in a 2011 solicitation that GABEO was a “sister organization” to Universal Humanities and that GABEO was committed to the “growth and advancement of Universal Humanities.” Brooks falsely claimed that GABEO members spoke in public forums to implement and promote Universal Humanities’ programs; that GABEO members taught at Universal Humanities meetings and classes “alongside” Universal Humanities community organizers; and that GABEO members served on the Universal Humanities’ board of directors, steering committee, fundraising committee, and program management committees, though the purported committees were nonexistent.

As a result of Brooks’ misappropriation, the intended beneficiaries of the donated funds did not receive the needed literacy training or assistance.

GABEO Scheme

The government presented evidence at the plea hearing that Brooks also diverted charitable donations he solicited on behalf of GABEO and used much of the money to pay personal expenses for himself and his family. GABEO is an organization of state, county, and municipal elected officials which promotes crime prevention, voter registration, literacy and economic empowerment initiatives.

Brooks solicited contributions for GABEO from corporations, organizations and individuals. When Brooks was elected as GABEO’s President in 1993, the organization already maintained an official bank account at a local bank. This account was administered by GABEO’s Treasurer, and disbursements required two signatures by GABEO Board members. In December 1997, Brooks secretly opened a second GABEO bank account at a different bank. Brooks set himself up as the sole signatory on this account, and had the account statements sent to his address rather than the address of the GABEO Treasurer. Brooks then deposited the donations that he solicited on behalf of GABEO into this undisclosed account, and used much of these funds to pay personal expenses for himself and his relatives.

Between 2002 and 2012, businesses, civic, religious groups and individuals contributed approximately $300,000 to GABEO through Brooks, which he then deposited into the undisclosed GABEO account. Brooks misappropriated donations that he solicited on behalf of GABEO from corporations, local teacher unions, small business owners, and individual donors – all of whom relied on Brooks’ assurances that the contributions were intended to further GABEO’s community activities. The GABEO Board was unaware of this activity and did not approve these transactions.

Brooks misappropriated the GABEO funds in much the same manner as the Universal Humanities funds. Brooks deposited funds he solicited on behalf of GABEO into the undisclosed GABEO account, then transferred the funds to his personal account, from which he paid his personal expenses. While Brooks utilized some of the GABEO donations to pay expenses related to GABEO’s annual meetings, he utilized much of the GABEO funds for personal expenses.

During the time that Brooks acted as GABEO’s President, a variety of charitable groups, companies and individuals made donations to GABEO through Brooks. These donors relied on Brooks’ representations that GABEO would use the contributions to defray the costs of the organization’s annual meetings and convention, and to support GABEO’s programs.

Brooks made specific false representations to donors about how the solicited funds would be used, claiming that the funds would be used to cover the expenses of annual GABEO meetings, support GABEO crime prevention and child hunger initiatives, voter registration, felon rehabilitation initiatives, and literacy programs. Donors included Coca Cola, Georgia Power, the International Brotherhood of Teamsters and others. Instead, Brooks deposited these funds into the undisclosed GABEO account that he controlled and then transferred the money to his personal account, ultimately using most of the contributions to pay personal expenses.

By misappropriating GABEO donations for his personal use, Brooks benefitted himself at the expense of both GABEO and the communities most in need of the literacy, crime prevention and voter registration programs for which the funds were intended.

False Tax Returns Charges

Finally, Brooks pleaded guilty to tax fraud and, in so doing, he admitted he substantially underreported his income to the IRS for the 2011 tax year. Despite Brooks’ misappropriation of Universal Humanities and GABEO funds, his tax return for the 2011 tax year falsely reported a salary of only approximately $35,000 annually.

Brooks, 68, of Atlanta, Georgia, pleaded nolo contendere guilty to five counts of mail and wire fraud and fully admitted his guilt as to one count of tax fraud.

This case is being investigated by Special Agents of the Federal Bureau of Investigation and Internal Revenue Service.

Assistant United States Attorneys Kurt R. Erskine, Richard S. Moultrie, Jr. and Kamal Ghali are prosecuting the case.

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

NEWNAN, Ga. - Emmett Winston Smith, a/k/a Everett Smith, a former facilities assistant and Sunday school teacher at a church in Newnan, Georgia, has been arraigned on federal charges of distributing, receiving, and possessing child pornography. Smith was indicted by a federal grand jury on March 24, 2015.

“Smith allegedly traded images and videos of child pornography with others, and went into Internet chat rooms looking to make contact with others who shared his same interests,” said Acting U.S. Attorney John Horn. “This case, which began with a lead from the Royal Canadian Mounted Police, illustrates our strong partnership with international law enforcement to combat child pornography and to identify and prosecute those who trade images of the sexual abuse of children.”

“The child pornography discovered during this investigation shows the abuse of numerous innocent children who are re-victimized each time images of their sexual exploitation are traded,” said Acting HSI Atlanta Special Agent in Charge Ryan Spradlin. “HSI Special Agents are actively working to disrupt the trade of these illegal images, and will continue to coordinate with our foreign and domestic law enforcement partners to identify and seek prosecution of criminals who possess them.”

According to Acting U.S. Attorney Horn, the charges, and other information presented in court: In 2014, the Royal Canadian Mounted Police investigated a person on allegations that he traded in child pornography. That investigation revealed that the Canadian subject had traded more than 200 e-mails containing child pornography with a person using an e-mail address that eventually led back to a house in Newnan, Georgia. Canadian law enforcement passed this information on to Special Agents of the Department of Homeland Security, who continued the investigation.

Homeland Security Investigations agents identified Emmett Winston Smith as the person trading e-mails with attachments of child pornography. They obtained a federal search warrant for Smith’s house in Newnan and executed it on March 5, 2015, where they found child pornography on three computers at the house. Smith was arrested that same day.

At the time of his arrest, Smith was working as a custodian at a large church in downtown Newnan that had a pre-school attached to it. He was also a Sunday school teacher at that same church.

Smith, 66, of Newnan, Georgia, was arraigned today before U.S. Magistrate Judge Gerrilyn G. Brill. He was indicted on March 24, 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 Paul R. Jones 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 home page for the U.S. Attorney’s Office for the Northern District of Georgia Newnan Division is http://www.justice.gov/usao/gan/.

ATLANTA - Stafford S. Maxwell, the former owner of Millennium Capital Exchange, Inc., has been arraigned on charges of orchestrating a multi-million dollar foreign exchange market Ponzi scheme.  He was indicted March 17, 2015.

“Maxwell allegedly lured investors to his forex firm with false promises of trading success,” said Acting U.S. Attorney John Horn.  “Even with an improving economy, investment fraud schemes are as popular as ever, and citizens need to be careful when choosing where to entrust their hard earned money.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The investigation that led to the indictment and arrest of Maxwell reflects the FBI’s commitment to the many victims that have suffered significant financial losses and hardships as a result of this fraudulent investment scheme as alleged in the indictment.  Investors are reminded to be cautious of investment pitches that promise exceptionally high rates of return such as those allegedly promised in this case.”

According to Acting United States Attorney Horn, the charges, and other information presented in court: In March 2007, Maxwell incorporated and owned Millennium Capital Exchange, Inc. (“Millennium”), which purported to be a foreign exchange market trading firm. The foreign exchange market (or forex market) is the global market in which participants buy, sell, exchange, and speculate on currencies. The forex trading market consists of banks, commercial companies, central banks, investment management firms, hedge funds, retail forex brokers, and individual investors. Forex trading involves the trading of currencies from different countries against each other. An example of a forex trade is to buy Japanese yen while simultaneously selling United States dollars. Trading in foreign exchange markets frequently exceeds $5 trillion per day.

From about 2008 to January 2012, Maxwell solicited investments from individuals across the United States with promises of high fixed rates of return to be generated from successful foreign currency trading. In particular, to obtain money from investors, Maxwell falsely stated that: (a) he possessed excellent forex trading skills; (b) he had a long history of forex trading success; (c) he often assured investors that they would earn an annualized rate of return on their investments from approximately 48% to 72%; (d) he used “stops” and “floors” on currency trades to insure that the gains would be large, but that the losses would be small; (e) investors had realized significant gains based on his trading; and (f) he had reserve funds that enabled him to cover any trading losses.

According to the indictment, Maxwell: (a) had little success executing forex trades; (b) lost almost all the money that he traded in forex markets; (c) was unable to pay investors the promised investment dividends; and (d) possessed no reserve fund to cover forex trading losses.

According to Millennium’s business model, Maxwell was supposed to use the invested funds to make forex trades through accounts at a financial firm in Geneva, Switzerland. Based on his false representations, investors wired Maxwell well over $1 million, expecting that the funds would be traded in the Swiss accounts the indictment alleges. After receiving money from investors, however, Maxwell diverted approximately half of the money for other improper purposes. First, in an effort to perpetuate the scheme and make it appear that he was a successful forex trader, Maxwell used the money received from new investors (that was supposed to be traded on the forex market) to pay “dividends” to older investors. Second, Maxwell used the money received from investors (that was supposed to be traded on the forex market) to pay his own personal living expenses. In the end, Maxwell spent or lost almost every dollar invested with him.

Stafford S. Maxwell, 46, of Mableton, Georgia, was indicted on March 17, 2015, on ten counts of wire fraud.

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 Jeffrey W.  Davis 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 – Ismail Sirdah has pleaded guilty to bribing a member of the DeKalb County Zoning Board of Appeals to secure a variance for his late-night billiard hall, Lulu Billiards in Tucker, Georgia.

“Zoning rules exist to protect neighborhoods from businesses and establishments that might disrupt the residential aspect of our communities,” said Acting U.S. Attorney John Horn. “This case illustrates how greed and cash payments can sell out the legitimate interests of our citizens.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated:  “While the FBI’s focus in public corruption matters is primarily with that of the public official, it can readily shift to those individuals who attempt to corrupt those officials.  That was seen in this case involving Mr. Sirdah, an area business owner, who purchased the vote of a DeKalb County Zoning Board member in a county action that impacted his business.  This guilty plea of Mr. Sirdah for those criminal actions should serve as a reminder that the FBI will not tolerate efforts to unduly and illegally influence government officials in this manner.”

According to Acting 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 must 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 grandfathered in under the 2008 zoning ordinance change.

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

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.  Notwithstanding 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 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.

Prior to the hearing on the appeal, Sirdah met with Jeremy “Jerry” Clark, who was a member from the Zoning Board of Appeals. 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, 42, of Lithonia, Georgia, pleaded guilty to accepting a bribe from Sirdah. Clark is scheduled to be sentenced on April 30, 2015, at 10:00 a.m., before United States District Court Judge Leigh Martin May.

On March 25, 2015, Sirdah, 53, of Duluth, Georgia, was charged via a criminal information with one count of bribery.  Sirdah pleaded guilty to that charge.  The sentencing hearing for Sirdah is scheduled for June 15, 2015, at 11:00 a.m., also before Judge May.

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

Assistant United States Attorney Jeffrey W. Davis 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 - Patrick Jackson, a former janitorial services manager for the DeKalb County Government and Georgia World Congress Center (GWCC), has pleaded guilty to conspiracy to commit honest services fraud, admitting that he used his position as a public official to obtain benefits for himself.   

“Jackson abused his position as a public official by accepting a bribe in exchange for helping a company attain and maintain government contracts at both the Georgia World Congress Center and DeKalb County,” said Acting U.S. Attorney John A. Horn.  “This dishonest conduct threatens to undermine the integrity of the contracting system and the quality of the goods and services produced pursuant to those contracts. Today Jackson admitted his wrongdoing.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI will continue to make public corruption cases at all levels a priority matter and asks that anyone with information regarding such matters to contact their nearest FBI field office.”

According to Acting U.S. Attorney Horn, the charges, the plea agreement, and other information presented in court: From 2006 through 2012, Jackson simultaneously worked for two governmental entities: DeKalb County and GWCC.  He served as the manager of janitorial services for both entities without the knowledge of either entity. In court, Jackson admitted to using his position as a public official to obtain favors from a company (identified in the Indictment as “Company A”) that provided janitorial services to both DeKalb County and GWCC. Jackson worked for “Company A” before he began working for DeKalb County and GWCC.

While employed by DeKalb County and GWCC, Jackson lived in a luxury apartment in Atlanta, Georgia, that “Company A” furnished and paid for.  In exchange, Jackson used his position as a public official to benefit “Company A” in its business dealings with DeKalb County and GWCC.  During that time, “Company A” obtained governmental contracts well in excess of one million dollars with the entities.  Jackson did not disclose to either employer that “Company A” paid for his apartment. By accepting these bribes, Jackson deprived his employers of their right to his honest services.

Patrick Jackson, 56, of Loganville, Georgia, pleaded guilty before United States District Judge William Duffey.  Jackson was indicted by a federal grand jury on September 9, 2014.

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

Assistant United States Attorneys Jamie L. Mickelson and Kamal Ghali are prosecuting the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the 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 – Lockheed Martin Corporation (“Lockheed”) has agreed to pay $2 million to settle allegations that it overbilled the government for fuel it used while manufacturing C-130 aircraft for the United States Air Force. 

“The resources of the United States Government are limited and must be protected.  We expect companies doing business with the United States to be circumspect and forthright in billing the United States and using its resources,” said Acting U.S. Attorney John Horn.  “Here, in causing the government to pay for fuel that was the company’s financial responsibility, Lockheed failed to live up to the terms of the contracts and caused financial injury to the government.  The settlement reflects our resolve to ensure that companies that overbill or overcharge the Government will be identified and held responsible for their actions.”

“This settlement illustrates the diligent work exhibited by a joint Air Force Office of Special Investigations and DCIS investigative team, that sifted through and unwound dense and complicated data to reveal the overcharges,” said Lloyd Clark, Assistant Special Agent in Charge, AFOSI Procurement Fraud Detachment Five.  

“This settlement is the culmination of the tireless investigative efforts of DCIS agents working closely with our Air Force OSI partners,” said John F. Khin, Special Agent in Charge, Southeast Field Office.  Combatting waste and abuse in Department of Defense contracts to protect the integrity of our national defense programs, remains a top priority for the Defense Criminal Investigative Service.”

Between 2006 and 2013, Lockheed manufactured C-130s for the U.S. Air Force at its Marietta facility.  Pursuant to the underlying contracts, the Government provided Lockheed with up to 22,000 gallons of fuel (characterized as government furnished property or “GFP”) per aircraft, which could be used for the engine runs, fuel operations and test flights necessary to manufacture C-130s.  Once Lockheed exhausted its 22,000 gallon allotment on a particular aircraft, Lockheed, not the Government, was financially responsible for any additional fuel. 

However, the Government’s investigation indicated that between 2006 and 2013, Lockheed routinely used fuel in excess of the 22,000 gallons, but failed to reimburse the government for the excess.  Additionally, the evidence suggests that Lockheed used the fuel on other unrelated projects, where the government was either not a party, or had not agreed to furnish fuel. 

This matter was investigated by the United States Air Force Office of Special Investigations, the Defense Criminal Investigative Service, and Defense Contract Audit Agency.

Assistant United States Attorney Paris A. Wynn handled 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/gan/.

ATLANTA - Tasheen Raphael Pickett and Shedrick Giles have been arraigned on federal charges arising from the theft of personal property that was entrusted to them as they held themselves out to be professional movers.  Pickett and Giles were indicted by a federal grand jury on March 10, 2015.

“While acting as a professional movers, the defendants allegedly took innocent victims’ belongings—clothes, furniture, and other personal items—and simply never returned them,” said Acting U.S. Attorney John Horn.     

“This action demonstrates the Department of Transportation’s commitment to combat those household goods movers who take advantage of customers by stealing their belongings or holding their goods hostage,” said Marlies T. Gonzalez, Department of Transportation Office of Inspector General Special Agent-in-Charge. “Working with our law enforcement colleagues across government and Federal Motor Carrier Safety Administration (FMCSA) officials, we will continue our efforts to ensure that movers adhere to Federal laws and regulations designed to protect the public.”

According to Acting U.S. Attorney Horn, the charges, and other information presented in court: Since November 2013, Pickett and Giles traveled the United States, acting as professional movers while picking up innocent victims’ personal property shipments and promising to deliver those shipments to agreed-upon locations.  Instead of delivering the property, however, Pickett and Giles would allegedly take control of the property, keeping some of it for themselves.

After a criminal complaint was filed against Pickett in Amarillo, Texas, in July 2014, the Department of Transportation Office of Inspector General (DOT-OIG) was notified.  In September 2014, DOT-OIG agents searched storage units at a Public Storage Facility in East Point, Georgia.  There it was discovered that the units were stacked full with approximately 14 individuals’ personal property—property that had allegedly been taken by Pickett months prior and never delivered. 

Other property allegedly 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 the last several years, neither is authorized to transport household goods by the Federal Motor Carrier Safety Administration, the federal agency tasked with providing oversight over household goods movers.

Tasheen Raphael Pickett, 40, of College Park, Georgia, and Shedrick Giles, 43, of Brentwood, New York, were arraigned before Chief U.S. Magistrate Judge Janet F. King.  Pickett was arraigned on March 11, 2015, and Giles was arraigned on March 18, 2015.  They are charged with conspiracy, transportation of stolen property, and possession of stolen property.

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 Department of Transportation – Office of Inspector General.

Assistant United States Attorney Samir Kaushal is prosecuting 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 – William Wilkins and Michael Fairnot-Woods have been sentenced to 18 years and 15 years in federal prison, respectively, for their roles in an armed robbery spree that targeted U.S. Postal Service letters carriers in Decatur and Lithonia, Georgia.  The robberies were part of a scheme to steal a rival drug dealer’s marijuana that was being shipped illegally through the mail.  The conspirators also sought to steal financial documents and blank checks that were then used for bank fraud and identity theft.

“Postal workers perform an important public service and should not have their lives jeopardized simply for doing their jobs,” said Acting U.S. Attorney John Horn.  “The fact that they were targeted in broad daylight while delivering mail in quiet residential neighborhoods is one more indication of the disregard those in the illegal drug trade have for other people’s lives.”

“The U.S. Postal Inspection Service is pleased with today's sentence.  A large part of the Postal Inspection Service mission is assuring the safety of postal employees and we want them to have confidence that they can focus on their duties.  These types of crimes against postal employees are rare, but when they do occur, they become top priority for us.” said Tom Noyes, Postal Inspector in Charge of the Charlotte Division –Atlanta Field Office.

According to Acting U.S. Attorney Horn, the charges, and other information presented in court:  On August 18, 2012, in a residential area in Decatur, Georgia, William Wilkins and Michael Fairnot-Woods approached a U.S. Postal Service letter carrier, “K.W,” pointed a military-style assault rifle at her, and stole a package that she was in the process of delivering.  The package contained marijuana shipped illegally by a rival drug dealer.  Wilkins and Woods fled the area in a pick-up truck.

On November 20, 2012, at another residence in Decatur, Wilkins approached a letter carrier, “A.J.,” pointed a handgun at her, and stole several packages and a tray of mail from her postal vehicle.  Wilkins fled the area in a car driven by Fairnot-Woods.  Several blank checks stolen during this robbery were later altered and deposited fraudulently by a co-conspirator, Joshua Ellis.

On November 23, 2012, at a residence in Lithonia, Georgia, Wilkins approached a letter carrier, “D.C.,” pointed a silver handgun at him, and demanded the keys to his postal truck.  D.C. resisted, and Wilkins then fled the scene empty-handed with Woods, who was waiting in a car nearby.

On January 24, 2013, in a residential area in Decatur, Wilkins approached a letter carrier, “C.C.,” pointed a handgun at him, and directed him to open the back door of his postal vehicle.  Wilkins jumped into the truck and began rifling through various packages until he located the particular package containing marijuana that he was looking for.  Wilkins fled the scene with the package in a car driven by Woods.  After receiving a tip about 30 minutes later, DeKalb County Police stopped the car Wilkins and Woods were traveling in and located the stolen marijuana package, the firearm used during the robbery, and other evidence linking the defendants to this crime.  An investigation by federal agents later connected Wilkins and Woods to the earlier robberies and attempted robbery described above.

William James Wilkins, 28, of Decatur, Georgia, pleaded guilty to two counts of armed postal robbery, one count of brandishing a firearm during a crime of violence, and one count of possessing marijuana with the intent to distribute it.  Wilkins was sentenced to 18 years in prison on March 24, 2015, to be followed by five years of supervised release.  He was also ordered to pay restitution in the amount of $2,895.37.

Michael Anthony Fairnot-Woods, 27, of Decatur, Georgia, pleaded guilty to two counts of armed postal robbery, one count of brandishing a firearm during a crime of violence, one count of possessing marijuana with the intent to distribute it, and one count of illegally possessing a firearm after receiving a felony conviction.  Fairnot-Woods was sentenced to 15 years in prison on March 27, 2015, to be followed by five years of supervised release.  He was also ordered to pay restitution in the amount of $2,895.37.

Joshua Ellis, 22, of Decatur, Ga., pleaded guilty to one count of bank fraud and one count of possessing stolen mail.  Ellis was sentenced to three years on probation on March 27, 2015.  He was also ordered to pay restitution in the amount of $2,895.37.

This case was investigated by the United States Postal Inspection Service and the DeKalb County Police Department.

Assistant United States Attorneys John S. Ghose, Katherine M. Hoffer, and Mary F. Kruger prosecuted the case.

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

ATLANTA - Zachary Vaughn, Derek Spinks, Harry Cobb, and William Leese have been sentenced for their respective roles in a conspiracy to steal more than $4 million from the Bank of New York Mellon.

“In 2009, Defendant Vaughn brazenly stole more than $4 million and for years manipulated bank accounts to cover his tracks, all for the benefit of himself and his coconspirators who enjoyed the fruits of the theft,” said Acting U.S. Attorney John Horn.  “Citizens trust financial institutions with their money every day and have the right to expect that bank employees handling their accounts have the utmost integrity.  Those who enrich themselves by stealing someone else’s money will be caught and prosecuted.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The sentencing of these four defendants brings to a close an extensive and expensive bank fraud scheme.  With restitution amounts in excess of $4 million dollars, these individuals will have many years to contemplate their bad decisions.”

According to Acting U.S. Attorney Horn, the charges and other information presented in court: From 2005 to 2013, Zachary Vaughn was employed by the Bank of New York Mellon at its Atlanta, Georgia location. In his position, Vaughn had access to client funds that were held at the bank, including an account that held more than $4.3 million in reserve funds, which belonged to a customer of the bank. Vaughn and defendant Derek Spinks decided to steal the funds from the bank.

In December 2009, Vaughn wired $4.3 million from the Bank of New York to a bank account in the name of a business owned by Derek Spinks. Soon thereafter, Spinks and defendant William Leese decided to invest the money in C&L Logistics and Transportation, LLC, a business owned by Leese and defendant Harry Cobb.  In January 2010, the defendants arranged to move the $4 million to a C&L bank account that was controlled by Leese and Cobb.

The defendants then used the stolen funds for C&L business expenses as well as for personal expenses, including purchasing personal vehicles, a suite at Atlanta Hawks basketball games, gold, and funding personal travel expenses. Vaughn, who remained employed at the Bank of New York until 2013, continually moved client funds from one account to another so that the original theft went undetected until 2013, when he left his employment with the Bank.

The defendants were sentenced by United States District Judge Orinda B. Evans as follows:

• Vaughn, 35, of Atlanta, Georgia, was sentenced on February 19, 2015, to five years, three months in prison to be followed by five years of supervised release. Vaughn was convicted after pleading guilty on August 18, 2014.

• Spinks, 35, of Austell, Georgia, was sentenced March 26, 2015, to two years, nine months in prison to be followed by five years of supervised release. Spinks was convicted after pleading guilty on September 4, 2014.

• Cobb, 48, of Decatur, Georgia, was sentenced March 26, 2015, to one year, eight months in prison to be followed by five years of supervised release. Cobb was convicted after pleading guilty on September 15, 2014.

• Leese, 33, of Duluth, Georgia, was sentenced on February 19, 2015, to three years, one month in prison to be followed by five years of supervised release. Leese was convicted after pleading guilty on December 5, 2014.

Additionally, all of the defendants were ordered to pay restitution to the Bank of New York in the amount of $4,387,598.57. 

This case was investigated by the Federal Bureau of Investigation.

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 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 - Destin Whitmore has been sentenced to 17 years, six months for extortion, distribution of child pornography, and possession of child pornography.  The defendant used a social media site, where he maintained two fake aliases as well as a personal account, to entice and then force nine minors to provide him pornographic images of them. 

“This case is a sad example of the dangers of the Internet for teens that aren’t careful,” said Acting U.S. Attorney John Horn. “This defendant victimized at least nine teenage girls by using their images to extort pornographic images, creating a vicious cycle of exploiting vulnerable victims.”

According to Acting U.S. Attorney Horn, the charges and other information presented in court: In April 2012, a girl in Arizona reported that she had been contacted on Facebook by an individual using the profile name “Ralph Jenkins.” The individual using the Jenkins profile, later identified as Destin Whitmore, sent the teen compromising images of herself that she had previously sent to Whitmore, and he threatened to send those images to other persons, including her family members, if she did not immediately create additional images for him.

A subsequent investigation of that profile, along with a profile using the name “Lenny Carlington,” showed that both profiles were used by Whitmore, along with his own Facebook account, to transmit pornographic images of numerous teen girls to the girls in order to extort them for additional images.  He threatened to distribute the pornographic images to others and post them on various websites for public consumption if they did not comply with his demands.  Whitmore knew many of the girls through personal relationships or through long-term communications using web cameras with the girls online.  Some of the girls had previously sent sexually explicit images to Whitmore or had provided such images to others, which Whitmore subsequently obtained.  The investigation revealed that Whitmore contacted and extorted at least nine minors over a period of six months.

Whitmore, 23, of Canton, Georgia, has been sentenced to 17 years, six months in prison to be followed by supervised release for life.  Whitmore was convicted of these charges on September 22, 2014, when he pleaded guilty.

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

Assistant United States Attorneys Mary Webb and Paul R. Jones prosecuted the case.

This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse.  Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the 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 - Rashard Jones, Octavious Hasting, Xzavius Ogletree, Tony Anthony Goodman, David Combs, Demetrice Coggins, and Shedrick Howard have been charged in two separate federal indictments with illegal firearms dealing, possession of firearms by convicted felons, illegal possession of “sawed-off” shotguns and rifles, and distribution of narcotics. 

“These indictments, which are the result of an undercover investigation, highlight the commitment of federal and local law enforcement to work together to address the problem of illegal guns and drugs in our communities,” said Acting U.S. Attorney John Horn.

“This enforcement action is the product of collaborative efforts on the part of ATF, the Griffin Police Department, and other local and federal law enforcement partners aimed at eliminating perpetrators of violent crime,” said ATF Special Agent in Charge Carl Walker.  “ATF will continue to dedicate our resources in conjunction with other law enforcement agencies to target violent criminal activity within the communities we serve.”

“I am appreciative of the cooperation between the police department and ATF,” said Griffin Police Chief Steve Heaton.  “As a result of this investigation, we were able to remove several dangerous people and illegal weapons from our community.”

According to Acting U.S. Attorney Horn, the charges, and other information presented in court:  After learning that several Griffin men were allegedly involved in the illegal sales of firearms, ATF and the Griffin Police Department launched an investigation.  This investigation led to the identification of two groups of defendants who allegedly were involved in the illegal sales of firearms and narcotics. Each of the defendants is a convicted felon and as a result was prohibited by federal law from possessing a gun, including unregistered “sawed-off” shotguns and rifles, in violation of the National Firearms Act.

Rashard Jones, Octavious Hastings, and Xzavius Ogletree are charged in one indictment with illegal firearms dealing.  Defendant Jones allegedly sold guns directly to a confidential informant in addition to serving as a middle man between the confidential informant and Octavious Hastings and Xzavius Ogletree.  In total, the defendants allegedly sold and possessed seven different firearms, including five hand guns, an assault rifle, and a shotgun -- many of which had previously been reported stolen.  In addition to dealing in firearms, Defendant Jones is charged with distribution of cocaine.

A second indictment charges Tony Goodman, David Combs, Demetrice Coggins, and Shedrick Howard with illegal firearms dealing. Tony Goodman, aided and abetted by Demetrice Coggins, Combs, and Howard, allegedly was involved in the sale of ten different firearms including three “sawed-off” shotguns and a “sawed-off” rifle.  Howard allegedly sold nine different firearms including a “sawed-off” shotgun.  In total, the defendants allegedly sold and possessed 22 firearms, many of which had previously been reported stolen.  Goodman and Howard are also individually charged with the distribution of MDMA.

All of the defendants listed below are from Griffin, Georgia:

• Rashard Jones, a/k/a Bulldog, 26;

• Octavious Hasting, a/k/a Tay Lay, 29;

• Xzavius Ogletree, a/k/a Zay, 35;

• Tony Anthony Goodman, 50;

• David Combs, a/k/a Bishop, 24;

• Demetrice Coggins, a/k/a Meechie, 37;

• Shedrick Howard, a/k/a Petro, 24.

Ogletree, Combs, and Coggins were arraigned before Chief U.S. Magistrate Judge Janet F. King on March 18, 2015.  Goodman was arraigned before Judge King on March 20, 2015.  After detention hearings, Ogletree, Combs, Coggins, and Goodman were detained pending trial.  Jones, Hastings, and Howard are awaiting arraignment.  All were indicted by a federal grand jury in two separate indictments on March 4, 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 Bureau of Alcohol, Tobacco, Firearms and Explosives, and Griffin Police Department.

Assistant United States Attorney Matthew S. Carrico 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 Newnan Division is http://www.justice.gov/usao/gan/.

ATLANTA - David Andres Perez-Pelaez, a/k/a Andres Zapata has been arraigned on federal charges of unlawfully exporting firearms and fraudulently shipping firearms to Medellin, Colombia, and possessing and disposing of stolen firearms, including a handgun stolen from the Clayton County Police Department.  Perez-Pelaez was indicted by a federal grand jury on March 10, 2015.

“Illegal gun trafficking is a major problem in Georgia, but what makes this case even worse is that the defendant is alleged to have shipped stolen guns to Medellin Cartel members in Colombia,” said Acting U.S. Attorney John Horn.   “Colombian cartels don’t need more guns to promote their violent activities, and we at home don’t need a market to reward gun thieves for adding dangerous weapons to the drug trade.  This defendant is alleged to have done both.”

“This arrest is a result of the collaborative efforts of ATF and our American and International law enforcement partners to protect communities from violent criminal organizations,” said ATF Special Agent in Charge Carl Walker.  “During the course of this two year investigation, we utilized every available resource to eradicate firearms violence which threatens citizens both domestically and internationally.”

“This investigation and the charges being brought are excellent examples of law enforcement agencies working together to target firearms smuggling around the world,” said Douglas Hassebrock, Director of the Department of Commerce's Office of Export Enforcement.

“The illegal export of firearms from the United States to violent criminal organizations creates significant public safety hazards throughout the world,” said Acting Special Agent in Charge Ryan L. Spradlin from ICE Homeland Security Investigations in Atlanta. “With this arrest, American and Colombian law enforcement agencies worked together to identify and seal off an alleged source of weapons for these dangerous criminals.”

According to Acting U.S. Attorney Horn, the charges, and other information presented in court:  On March 1, 2013, Colombian Direccion de Antinarcoticos (DIRAN) personnel intercepted a package sent from Marietta, Georgia, destined for Medellin, Colombia, at the El Dorado International Airport in Bogota, Colombia. The package contained three disassembled firearms—two .40 caliber Glock pistols and a 9mm Taurus pistol—as well as five pistol magazines and a variety of ammunition, all concealed inside a piece of equipment.  One of the Glock pistols was stamped as property of the Clayton County, Georgia, Police Department, and had been reported stolen.  The other Glock pistol, also reported stolen, traced back to a seller and purchaser in Milledgeville, Georgia.  The Taurus pistol had been reported stolen from a gun shop in Marietta, Georgia.  The firearms and ammunition were not declared on customs or shipping labels, in violation of both U.S. and Colombian law, and the intended recipient was not a licensed firearm dealer.

Subsequent investigation by American and Colombian authorities revealed that the package had been sent, under the alias “Andres Zapata,” by the defendant, David Andres Perez-Pelaez, and was destined for individuals connected to the La Oficina de Envigado drug cartel, operating out of the Colombian cities of Medellin and Envigado.  La Oficina de Envigado is known to be involved in international drug trafficking, extortion, and the collection of payments for criminal organizations in Antioquia, Colombia.

The investigation revealed that Perez-Pelaez started smuggling firearms to Colombia in June 2011, and continued through 2013.  Perez-Pelaez hid the firearms and ammunition in everyday objects, such as garage door openers, and shipped them—without a truthful declaration of contents—via the freight carriers to Colombia.  The defendant initially acquired these firearms from licensed firearms dealers and gun shows, but eventually started buying stolen firearms from the secondary market, so as to avoid detection.  The defendant illegally shipped approximately 15 firearms in total, including 5.56 caliber rifles, 9mm and .40 caliber semiautomatic pistols, and other firearms and ammunition.  Perez-Pelaez would receive payment from his Colombian buyers via Western Union, and would make up to $3,500 profit per rifle, and up to $2,000 per pistol.

David Andres Perez-Pelaez, a/k/a Andres Zapata, 30, a Colombian national living in Marietta, Georgia, was arraigned before U.S. Magistrate Court Judge Janet F. King on Tuesday, March 24, 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 Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bureau of Industry and Security’s Office of Export Enforcement, and the Department of Homeland Security, Homeland Security Investigations, with assistance from Colombian authorities, including Direccion de Antinarcoticos, and Unidad Nacional de Fiscalias Contra el Terrorismo.

Assistant United States Attorneys Tracia M. King and John S. Ghose are prosecuting the case.

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