Northern District of Georgia

ATLANTA – Eric Campbell has been sentenced to four years, nine months in prison for operating a multi-million dollar surety bond fraud scheme which caused not only financial losses, but also created delays in construction projects across the country and compromised bids resulting in some contracts being awarded to unqualified construction companies.

“This defendant lied to building contractors and government agencies about his qualifications to issue surety bonds.  When his fraud was uncovered and a new valid surety bond had to be found, the construction bidding process was compromised for various projects across the country.  There were construction delays, and the construction firms that unwittingly purchased fraudulent surety bonds from the defendant lost hundreds of thousands of dollars in premiums they had paid,” said Acting U.S. Attorney John Horn.  

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The level of fraud seen in this case was costly in many ways to those doing business with Mr. Campbell.  It is hoped that the sentencing of Mr. Campbell will send a clear message to others that these types of criminal schemes to defraud are destined to fail and those involved will be held accountable.”

“Mr. Campbell orchestrated a scheme whereby he defrauded numerous individuals, businesses, and state and local governments of money based on false representations and promises” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation.  “Hopefully the sentence today will send a message to other individuals like Campbell, that this conduct will not be tolerated.”

According to Acting U.S. Attorney Horn, the charges and other information presented in court: From August 2012 until July 2013, Campbell used several corporations to sell fraudulent surety bonds on construction projects.  Surety bonds are three party bonding agreements in construction projects where a surety company assures the project owner that a contractor will perform a construction contract.  The federal government and many state and local governments require a surety bond for certain construction contracts. 

Campbell caused fraudulent surety bonds to be submitted to DeKalb County, Georgia; McDonough, Georgia; the U.S. Veterans Administration; Palo Alto, California; the Commonwealth of Kentucky; American Somoa; the Army Corps of Engineers; Nogales, Arizona; and several United States military bases, among others. 

The defendant fraudulently held himself out to contractors and government agencies as having the authority to execute or issue surety bonds on behalf of Federal Insurance Company and Pacific Indemnity Company, affiliates of the Chubb group.  To perpetuate the scheme, Campbell created fraudulent surety bonds, embossed the bonds using a counterfeit seal and forged the signatures of Chubb group officials.  Campbell and his associates issued bonds with a face value of more than $100 million and received premium payments of more than $2.2 million during the course of the fraud.  In addition to financial losses, Campbell’s fraud scheme caused delays in several construction projects and compromised the construction bidding process because contracts were sometimes awarded to unqualified construction companies.   

Campbell, 57, of Orange Park, Florida,was sentenced by U.S. District Judge Thomas W. Thrash, Jr., to four years, nine months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $1,904,376.67.  Campbell was been convicted on this charge on October 20, 2014, after he pleaded guilty.

This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation.

Assistant U.S. Attorney Jeffrey Brown prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the 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 – Former Dunwoody Police Detective Robert Pasquale Bentivegna has pleaded guilty to disclosing sensitive law enforcement information in exchange for receiving kickbacks for him and his family.

“It is a sad day when a career law enforcement officer turns his back on decades of public service by selling his access to sensitive law enforcement information,” said Acting U.S. Attorney John Horn.  “Bentivegna’s conduct undermines trust in law enforcement and could have exposed the public to significant harm.” 

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI’s number one criminal investigative program remains that of public corruption due to the vast harm that it can cause.  The guilty plea of former Dunwoody Det. Bentivegna illustrates the betrayal of the badge by a very seasoned law enforcement officer and the consequences that he now faces for this betrayal.”    

“Acts of corruption within the Department of Homeland Security represent a serious threat to our nation and undermines the integrity of all DHS employees, who strive to maintain the integrity of the Department.  The Office of Inspector General and its law enforcement partners will continue to pursue allegations of corruption and hold such shameless individuals like Mr. Bentivegna accountable,” said James E. Ward, Special Agent in Charge, DHS-OIG.

According to Acting U.S. Attorney Horn, the charges and other information presented in court: In July 2011, Bentivegna, a career law enforcement officer employed at the time with the Dunwoody, Georgia, Police Department and who had also served as a federal task force officer, began using an individual connected with a variety of illegal activities as a confidential informant. 

In exchange for valuable personal items for himself and his family, Bentivegna performed searches and informed the confidential informant about any active arrest warrants listed under the informant's name in the Georgia Crime Information Center (“GCIC”) database.  Such information can be valuable information to criminals, allowing them to flee before authorities can arrest them.  In exchange, over the course of approximately 18 months, Bentivegna received airline tickets for himself and his wife to travel to New York, his daughter received a convertible car which she used for over a year, and his son received a car to drive for a period of time. 

Bentivegna, 64, of Woodstock, Georgia, pleaded guilty to computer fraud for accessing information in the GCIC database for an improper purpose.  Sentencing is scheduled for June 1, 2015 before United States District Judge Leigh Martin May.

This case is being investigated by the Federal Bureau of Investigation and Department of Homeland Security - Office of the Inspector General.

Assistant United States Attorney Garrett L. Bradford 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 – Former Dunwoody Police Detective Robert Pasquale Bentivegna has pleaded guilty to disclosing sensitive law enforcement information in exchange for receiving kickbacks for him and his family.

“It is a sad day when a career law enforcement officer turns his back on decades of public service by selling his access to sensitive law enforcement information,” said Acting U.S. Attorney John Horn.  “Bentivegna’s conduct undermines trust in law enforcement and could have exposed the public to significant harm.” 

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI’s number one criminal investigative program remains that of public corruption due to the vast harm that it can cause.  The guilty plea of former Dunwoody Det. Bentivegna illustrates the betrayal of the badge by a very seasoned law enforcement officer and the consequences that he now faces for this betrayal.”    

“Acts of corruption within the Department of Homeland Security represent a serious threat to our nation and undermines the integrity of all DHS employees, who strive to maintain the integrity of the Department.  The Office of Inspector General and its law enforcement partners will continue to pursue allegations of corruption and hold such shameless individuals like Mr. Bentivegna accountable,” said James E. Ward, Special Agent in Charge, DHS-OIG.

According to Acting U.S. Attorney Horn, the charges and other information presented in court: In July 2011, Bentivegna, a career law enforcement officer employed at the time with the Dunwoody, Georgia, Police Department and who had also served as a federal task force officer, began using an individual connected with a variety of illegal activities as a confidential informant. 

In exchange for valuable personal items for himself and his family, Bentivegna performed searches and informed the confidential informant about any active arrest warrants listed under the informant's name in the Georgia Crime Information Center (“GCIC”) database.  Such information can be valuable information to criminals, allowing them to flee before authorities can arrest them.  In exchange, over the course of approximately 18 months, Bentivegna received airline tickets for himself and his wife to travel to New York, his daughter received a convertible car which she used for over a year, and his son received a car to drive for a period of time. 

Bentivegna, 64, of Woodstock, Georgia, pleaded guilty to computer fraud for accessing information in the GCIC database for an improper purpose.  Sentencing is scheduled for June 1, 2015 before United States District Judge Leigh Martin May.

This case is being investigated by the Federal Bureau of Investigation and Department of Homeland Security - Office of the Inspector General.

Assistant United States Attorney Garrett L. Bradford 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 - Michael C. Sibley made his initial appearance on federal charges that he intentionally conveyed false information relating to the unlawful use of an explosive device, and attempting to damage federal property by use of an explosive device, in connection with a device found in Vickery Creek Park in Roswell, Georgia, in November, 2014.  Sibley was arrested by the FBI pursuant to a criminal complaint on March 21, 2015.   

“The defendant allegedly placed a bag containing what appeared to be pipe bombs in Vickery Creek Park.  This arrest should reassure the community that serious crimes like this will be investigated thoroughly and all leads followed to identify the perpetrator,” said Acting U. S. Attorney John Horn.

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Reports of backpacks containing possible explosive devices are obviously taken seriously by the FBI and its Joint Terrorism Task Force (JTTF).  The law enforcement response by Roswell Police, the FBI and its JTTF, as well as a significant response by area Explosives Ordnance Disposal units, was not only time consuming but costly to the taxpayers.”

According to Acting United States Attorney Horn, the charges, and other information presented in court: On November 4, 2014, a citizen reported the presence of a suspicious package in Vickery Creek Park, located in Roswell, Georgia.  That day, Roswell, Georgia, police officers found a backpack along a trail in the park that contained two partially assembled improvised explosive devices, also referred to as pipe bombs.  The backpack also contained a Falcons schedule, a MARTA schedule and other papers, books and clothing.

On March 20, 2015, FBI agents identified Sibley as the individual who placed the device in the park and arrested him on a criminal complaint.  The complaint charges Sibley with 1) intentionally conveying false information under circumstances where such information reasonably indicated that a violation of a federal statute prohibiting the unlawful use of an explosive device would take place, in violation of 18 U.S.C. Section 1038; and 2) attempting to damage federal property by use of an explosive device, in violation of 18 U.S.C. Section 844(f)(1).

Michael C. Sibley, 67, of Marietta, Georgia, appeared today before United States Magistrate Judge Linda T. Walker. 

Members of the public are reminded that the Criminal Complaint 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 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/gan/.

NEWNAN, Ga. - Jasen Minter and Louis E. Nock have each been sentenced to four years, nine months in prison for stealing more than $2.7 million from a United States Government bank account while they were on active duty in the United States Army stationed in Riyadh, Saudi Arabia.

“This was an egregious abuse of trust by two former U.S. Army soldiers who had access to millions of dollars of government money,” said Acting U.S. Attorney John Horn.  “Their conduct betrayed their trust and honor as servicemembers and took substantial funds away from the United States Military Training Mission in Saudi Arabia.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “While the sentencing of both former U.S. Army Captain Jasen Minter and Sgt. First Class Louis Nock will finally hold them accountable for their criminal actions in stealing over two million dollars in government monies, it remains to be seen if they will be able to repay the government in spite of the fact that, as part of their sentencing, they are ordered by the court to do so.  While both Minter and Nock were stationed in Saudi Arabia, their purpose as Finance Officers was to support the war fighter through the U.S. Military Training Mission.  They, instead, literally sent boxes of U.S. cash back to the States for their own personal gain. This has been an extensive and protracted investigation initiated by the U.S. Army Criminal Investigative Division and the Department of Defense- Office of Inspector General. The FBI will continue to work with its military components in ensuring that U.S. funds designated for military use are used as intended and not diverted to personal bank accounts as was seen in this case.”

“Instead of serving their country honorably while stationed overseas in a sensitive assignment, these two U.S. Army finance officers betrayed it by abusing their positions of trust and embezzling more than $2.7 million in American taxpayer funds,” said John F. Khin, Special Agent in Charge, Southeast Field Office, Defense Criminal Investigative Service.  “This sentencing should serve as a constant reminder that DCIS and our law enforcement partners will relentlessly pursue corruption, fraud, and abuse within Department of Defense programs anywhere in the world, and bring violators to justice.”

“This sentencing is another great example of the work our special agents do on a daily basis,” said Frank Robey, the director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit. “The defendants attempted to profit by compromising the readiness of our servicemembers during a time of war, but this joint investigation unraveled their scheme and now they are being held responsible for betraying the trust placed in them.”

According to Acting U.S. Attorney Horn, the charges and other information presented in court: Minter and Nock served as the Finance Officer and Deputy Finance Officer, respectively, for the United States Military Training Mission in Riyadh, Saudi Arabia from 2006 to 2007. As part of their duties in the Finance Office, Minter and Nock had access to a U.S. government bank account that was held at the Saudi American Bank.

In June 2006, the defendants withdrew approximately $1.2 million in cash from the bank account and kept those funds for their own benefit. In August 2006, they made another withdrawal of more than $1.5 million in cash, and again kept the funds for their own use instead of returning them to the Finance Office. Before leaving Saudi Arabia, both defendants falsely affirmed in Finance Office records that there were no missing funds from the bank account. An audit conducted by the Department of Defense later revealed the theft of funds. 

Jasen Minter, 44, of Fayetteville, Georgia, has been sentenced to four years, nine months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $2,216,617.97.  Minter was convicted on these charges on November 21, 2014, after he pleaded guilty.

Louis E. Nock, 48, of Orlando, Florida, has been sentenced to four years, nine months in prison to be followed by three years of supervised release. He was also ordered to pay restitution in the amount of $2,216,617.97 to the United States Army. Nock was convicted of these charges on January 5, 2015, after he pleaded guilty.

This case was investigated by the United States Army Criminal Investigation Division, the Federal Bureau of Investigation, the United States Air Force Office of Special Investigations, and the Department of Defense, Office of the Inspector General.

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

ATLANTA - Veria Fields, a former employee of Bronner Bros., Inc., has been arraigned on nine counts of mail fraud relating to theft from her former employer.   Fields was indicted by a federal grand jury on March 4, 2015.

“Small businesses depend on their finance and accounting personnel to safeguard the financial health of the company and its employees,” said Acting U.S. Attorney John Horn.  “This defendant is charged with violating this trust and helped herself to millions of the company’s dollars over several years.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The loss amount in this case is significant and, with the federal indictment and arrest of Ms. Fields, the former Accounts Receivable Manager at the victim company, this matter will have its day in court.”

According to Acting U.S. Attorney Horn, the charges and other information presented in court: Fields was the Accounts Receivable Manager for Bronner Bros. Inc., a wholesaler of African American hair care products headquartered in Marietta, Georgia, Fields also informally performed customer service functions for the company.  From 2006 through 2010, Fields allegedly embezzled over $2.5 million from Bronner Bros. by offering customers unauthorized discounts of five to ten percent in exchange for cash payments made directly to her.  Thereafter, customers continued to submit orders with the expectation that they would receive the cash discounts promised by the defendant.  To conceal the unauthorized discounts and her theft from Bronner Bros, Fields allegedly used her position as Accounts Receivable Manager to create false and fraudulent accounting entries. 

Fields, 54, of Atlanta, Georgia, was arraigned on March 19, 2015, before U.S. Chief Magistrate Judge Janet F. King. 

Members of the public are reminded that the indictment contains only 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 Bernita B. Malloy 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 – Elaine Boyer, former Commissioner of District 1 in DeKalb County, Georgia, has been sentenced for embezzling county funds and misusing her government credit card.

“Elaine Boyer helped herself to over $75,000 in taxpayer funds which were intended to benefit and improve DeKalb County,” said Acting U.S. Attorney John A. Horn.  “Instead, she used the money for things like her personal travel and for purchases at high-end department stores.   The citizens of DeKalb County deserve to be represented by honest elected officials who put the interests of the public first.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The sentencing of former Dekalb County Commissioner Boyer concludes a lengthy career serving the people of Dekalb County.  In spite of her otherwise admirable service to her community, Ms. Boyer lost her way and crossed the line of the law, resulting in the end of her public service career and time in federal prison to reflect on it all.”

According to Acting U.S. Attorney Horn, the charges, and other information presented in court:  In DeKalb County, Georgia, the Board of Commissioners (“BOC”) serves as the legislative branch of the DeKalb County Government. The BOC is comprised of seven part-time commissioners, who are elected to serve four-year terms. Each of the seven Commissioners is responsible for the management of their respective offices, which includes controlling the offices’ budget and hiring staff members, contractors, and consultants.  In recent years, the operating budget for a Commissioner’s office has been approximately $250,000 per year. The Commissioners may use their budget only for county-related business.

In 1992, Ms. Boyer began serving as the Commissioner of District 1, which served citizens in north DeKalb County, including in Brookhaven, Dunwoody, Tucker, and Smoke Rise, Georgia. Among other responsibilities, Ms. Boyer sat on the BOC’s Finance, Budget, and Audit Committee and was the Chairwoman of the Employee Relations and Community Services Committee. Although Boyer’s term of office did not expire until 2016, she resigned on August 25, 2014, the day before she was charged in this case.

In September 2009, as the Commissioner of District 1, Ms. Boyer retained an individual (“Advisor”) supposedly to assist her with government consulting and advisory duties on issues that affected her constituents. From September 2009 to November 2011, false invoices were submitted to Ms. Boyer’s office for consulting services purportedly rendered by the Advisor. In fact, the Advisor performed no services for Ms. Boyer, District 1 constituents, or DeKalb County.  Ms. Boyer used the false invoices as a basis to authorize payments to the Advisor. Based on requisition requests from Ms. Boyer, DeKalb County issued approximately 35 checks to the Advisor for consulting services that were never performed. In total, DeKalb County paid the Advisor approximately $80,000, believing that legitimate services had been performed for the county.

After being paid by DeKalb County, the Advisor funneled approximately 75% of the money received from DeKalb County into Ms. Boyer’s personal bank account.  Between September 2009 and November 2011, the Advisor deposited approximately $60,000 in DeKalb County funds into Ms. Boyer’s personal bank account (while retaining the remainder of the money). In turn, Ms. Boyer used the money deposited into her account to pay personal expenses, including purchases at hotels and high-end department stores.

Additionally, in her capacity as a Commissioner, DeKalb County issued Ms. Boyer a Visa Purchasing Card (“P-Card”) to make county-related purchases. On January 14, 2010, she signed a Cardholder Users’ Agreement stating she would not use the P-Card to make personal purchases. 

From October 2010 to February 2014, Ms. Boyer made more than 50 personal purchases on her P-Card, including purchasing airline tickets and hotel rooms for herself and her family for personal travel. In total, she made over $15,000 worth of purchases on her P-Card for personal goods and services.

On September 3, 2014, Elaine Boyer, 58, of Stone Mountain, Georgia, pleaded guilty to one count of conspiring to commit mail fraud and one count of wire fraud. Today, Boyer was sentenced to one year, two months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $87,350.

On February 20, 2015, Elaine Boyer’s husband, John Boyer, 62, of Stone Mountain, Georgia, also pleaded guilty to one count of conspiring to commit mail fraud.  Mr. Boyer is scheduled to be sentenced on May 6, 2015, at 2:00 p.m., before the Honorable Orinda D. Evans.

This case is being investigated by Federal Bureau of Investigation.

Assistant United States Attorneys Jeffrey W. Davis and Kurt R. Erskine 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/.

GAINESVILLE, Ga. - Austin Herring has been arraigned on federal charges of accepting bribes and conspiring to possess with intent to distribute cocaine in relation to his efforts to smuggle cocaine into the Hall County Jail. Herring was indicted by a federal grand jury on March 3, 2015.

“This former corrections officer allegedly accepted bribes on two occasions to smuggle what he believed to be cocaine into the Hall County Jail,” said Acting U.S. Attorney John Horn. “We are committed to doing what we can to eradicate drugs and other contraband from jails.  Jails are the single place above all others where citizens should have confidence that the inmates are no longer breaking the law.”      

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI takes all allegations of public corruption within law enforcement very seriously and acted on its investigation involving former Hall County Detention Officer Herring promptly.   While these cases are disheartening to those working them, it should be noted that the vast majority of those in law enforcement are dedicated to their sworn oaths of office.  The FBI would like to thank Hall County Sheriff Gerald Couch and his staff for their understanding and cooperation during this investigation.”

According to Acting U.S. Attorney Horn, the charges, and other information presented in court: Herring was employed as a jailer with the Hall County Sheriff's Office. On two occasions in February 2015, Herring was paid $500 to take a package he was told contained cocaine to an inmate inside the jail. After Herring delivered each 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.

Herring, 19, of Murrayville, Georgia, was arraigned March 16, 2015, before United States Magistrate Judge J. Clay Fuller.  He was arrested on these charges on February 20, 2015.

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

This case is being investigated by the Federal Bureau of Investigation with assistance from the North Georgia Major Offenders Task Force and the Hall County Sheriff's Office.

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

ATLANTA - Ephren Taylor II, and Wendy Connor have been sentenced in connection with the fraud scheme they perpetrated while officers at City Capital Corporation.  The scheme victimized over 400 people who invested over $16 million.

“Taylor’s ‘Building Wealth’ tour accomplished exactly the opposite, victimizing hundreds of investors and leaving many of them financially ruined,” said Acting U.S. Attorney John Horn.  “At churches across the country he touted himself as a socially conscious investor, but his investment opportunities were nothing but a Ponzi scheme designed to build his own personal wealth.  This sentencing brings a measure of justice to those who remain devastated by his actions.”

“These defendants are habitual fraudsters and world-class manipulators,” stated Special Agent in Charge Veronica Hyman-Pillot, IRS Criminal Investigation. “Taylor and Connor knew that the investments they were touting were based entirely on deception and lies, which were driven by their insatiable greed.  Today, Taylor and Connor have to face the choices they have made and live with the consequences.”

“This case demonstrates the wide-reaching effects of fraudulent investment schemes and their impact on innocent victims. The fact that Ephren Taylor took advantage of people during a time of reverence and trust is particularly heinous,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office. “Today’s sentence should serve as a reminder that criminals will not get away with taking advantage of unsuspecting victims without bearing the consequences.”

According to Acting U.S. Attorney Horn, the charges and other information presented in court:  Taylor, the CEO of City Capital Corporation, directed a nationwide Ponzi scheme.  All told, he defrauded over 400 victims and convinced them to invest over $16 million.  From at least April 2009, when Wendy Connor joined City Capital, through October 2010, 278 victims were defrauded of over $5.8 million. 

As part of the scheme, Taylor traveled around the country on a “Building Wealth Tour,” where he gave wealth management seminars to church congregations and where he targeted the African American and Christian communities.  During this tour, Taylor claimed to be a socially conscious investor and falsely claimed that 20% of profits were donated to charity.  One of the churches on the “Building Wealth Tour” was the New Birth Missionary Baptist Church in Lithonia, Ga.  While there, Taylor and Connor met potential investors to discuss possible investments.  Over 80 individuals from Georgia lost more than $2 million because of Taylor’s scheme.

The investments pushed by Taylor and Connor included purchasing promissory notes, where the funds invested would be used to support small businesses, such as laundries, juice bars, and gas stations.  Taylor and Connor falsely represented the revenues and returns for these businesses knowing that they were not profitable.

Taylor and Connor also pushed an investment in sweepstakes machines.  Sweepstakes machines are computers loaded with various games that allow players to win cash prizes.  City Capital published offering materials that falsely claimed the average sweepstakes machine would generate 300% investor returns.  As part of the fraud scheme, Taylor and Connor also promised that the sweepstakes machine investments were 100% risk free.

Taylor and Connor knew that the investments he was touting were not profitable and that investors were not receiving actual returns from their investments.

As part of the scheme, Taylor and Connor encouraged investors to use self-directed IRAs to make their investments.  Many victims transferred their retirement savings to trust companies that act as custodians for self-directed IRAs, expecting these funds to be used to fund the investments pushed by Taylor.

After victims funded their self-directed IRAs, Taylor and Connor directed the use of those funds.  The money was not invested as promised, but rather was used to pay ongoing business expenses of City Capital, pay personal expenses for Taylor and Connor, and in some limited instances, to pay supposed returns to earlier investors.

In late 2010, the scheme collapsed and Taylor's victims lost virtually all of their investments.

Taylor, 32, of Overland Park, Kansas, was sentenced by United States District Judge William S. Duffey, Jr., to 19 years, seven months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $15,590,752.81.  Wendy Connor, 46, of Raleigh, North Carolina, was also sentenced by Judge Duffey to five years in prison, to be followed by three years of supervised release, the first eighteen months of which are home confinement, and ordered to pay restitution in the amount of $5,818,299.13.  Taylor was convicted on these charges on October 8, 2014, after he pleaded guilty to conspiracy to commit wire fraud.  Connor was convicted on these charges on October 8, 2014, after she pleaded guilty to the interstate transportation of money taken by fraud.

This case was investigated by the United States Secret Service and Internal Revenue Service Criminal Investigation with significant assistance from the United States Securities and Exchange Commission.

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

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the 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 - A criminal indictment was unsealed yesterday against Viet Quoc Nguyen and Giang Hoang Vu, both citizens of Vietnam, who resided for a period of time in the Netherlands, for their role in a massive data breach of Email Service Providers all over the United States. In addition, a federal grand jury returned an indictment this week against David-Manuel Santos Da Silva, a citizen of Canada, who is charged with conspiring with Nguyen and others to money launder the proceeds of Nguyen’s computer hacking offenses.

“This case reflects the cutting-edge problems posed by today’s cybercrime cases, where the hackers didn’t target just a single company; they infiltrated most of the country’s email distribution firms,” said Acting U.S. Attorney John Horn.  “And the scope of the intrusion is unnerving, in that the hackers didn’t stop after stealing the companies’ proprietary data—they then hijacked the companies’ own distribution platforms to send out bulk emails and reaped the profits from email traffic directed to specific websites.”

“These men — operating from Vietnam, the Netherlands, and Canada — are accused of carrying out the largest data breach of names and email addresses in the history of the Internet,” said Assistant Attorney General Caldwell.   “The defendants allegedly made millions of dollars by stealing over a billion email addresses from email service providers. This case again demonstrates the resolve of the Department of Justice to bring accused cyber hackers from overseas to face justice in the United States.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Large scale and sophisticated international cyber hacking rings are becoming more problematic for both the law enforcement community that is faced with the challenges of identifying them and laying hands on them, but also the Fortune 500 companies that are so often their targets.  The federal indictments, apprehensions, and extradition in this case represents several years of hard work as the FBI and its cadre of cyber trained agents and technical experts acted quickly to stop the ongoing damage to the numerous victim companies as a result of these individuals’ hacking activities.  In August, 2012, the FBI, with the assistance of its legal attachés stationed abroad, and in conjunction with Dutch law enforcement officials, executed a search warrant in the Netherlands that disrupted continued compromises of those companies while allowing U.S. authorities to advance its investigation.  That investigation targeted not only the hackers but the businesses that helped monetize the data that was stolen from those victim companies.  This case further reflects the productive partnership of the FBI and the U.S. Secret Service in aggressively addressing this 21st century crime problem.”

“Our success in this case and other similar investigations is a result of our close work with our law enforcement partners,” said Reginald Moore, Special Agent in Charge of the Atlanta Field Office. “The Secret Service worked closely with the Department of Justice and the FBI to share information and resources that ultimately brought these cyber criminals to justice.  This case demonstrates there is no such thing as anonymity for those engaging in data theft and fraudulent schemes.”

“Those individuals who line their pockets with money gained through deceiving others should know they will not go undetected and will be held accountable,” stated Special Agent in Charge, Veronica F. Hyman-Pillot.  “IRS Criminal Investigation is committed to unraveling financial transactions to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice.”

According to Acting U.S. Attorney Horn, the charges, and other information presented in court:  Between approximately February 2009 and June 2012, Viet Quoc Nguyen allegedly hacked into at least eight Email Service Providers (ESPs) all over the United States, including two ESPs based in the Northern District of Georgia, and stole confidential information, including proprietary marketing data containing over one billion email addresses.

Email Service Providers are companies that generally offer legitimate email marketing or bulk email services to their clients. Clients hire ESPs to assist with sending bulk emails to customers or potential customers who have opted to receive such emails. “Spam,” by contrast, is a commonly-used term for unsolicited email. ESPs generally take affirmative steps to ensure that their email campaigns are not blocked or classified as “spam” by the recipients’ email programs. 

Nguyen allegedly hacked into the ESPs’ computer databases and, in conjunction with Vu, used his unauthorized access to launch spam attacks on tens of millions of email recipients.  The data breach into certain ESPs was the subject of a congressional inquiry and testimony before a U.S House of Representatives subcommittee on June 2, 2011. 

The indictment alleges that Nguyen used various methods to gain unauthorized access into the ESPs’ computer databases.  In some instances Nguyen allegedly directed email phishing campaigns at employees of the ESPs, which are fraudulent emails designed to resemble emails from trustworthy persons or entities, but in fact are designed to trick the recipients into clicking a link on the email. Nguyen’s phishing campaigns allegedly delivered malware, which allowed him backdoor access to the ESP employees’ computer systems and enabled him to steal sensitive information, including the employees’ access credentials for the ESPs’ computer systems. Using stolen access credentials, Nguyen was not only able to allegedly steal confidential information by downloading the information from the ESPs’ computer systems to a server that he controlled in the Netherlands, but was also able to utilize the ESPs’ computer systems to launch spam attacks on tens of millions of stolen email addresses.

A federal grand jury returned a 29-count sealed indictment against Nguyen, 28, and Vu, 25, on October 3, 2012.  The indictment was unsealed in its entirety for the first time yesterday. Vu was arrested by Dutch law enforcement in Deventer, Netherlands, in 2012 and extradited to the United States in March 2014.  On February 5, 2015, Vu pleaded guilty to conspiracy to commit computer fraud. He is scheduled to be sentenced on April 21, 2015, at 10:00 am, before the Honorable Timothy C. Batten Sr.  Viet Quoc Nguyen is not in custody and remains a fugitive.

On Wednesday March 4, 2015, David-Manuel Santos Da Silva, 33, of Montreal, Canada, was indicted by a federal grand jury for conspiracy to commit money laundering with Nguyen and others. Da Silva was arrested by criminal complaint at Ft. Lauderdale International Airport, in Florida, on February 12, 2015, and will be arraigned today at 3:00 p.m., before U.S. Magistrate Judge E. Clayton Scofield III, in Atlanta, Georgia.

It is alleged that Da Silva, the co-owner, President and a Director of 21 Celsius, Inc., a Canadian corporation that ran Marketbay.com, entered into an affiliate marketing arrangement with Nguyen that allowed him to generate revenue from his computer hacks.  As an affiliate marketer, Nguyen allegedly received a commission on sales generated from internet traffic that he directed to websites promoting specific products. Nguyen allegedly used his computer hacks into the ESPs to direct “spam” attacks to tens of millions of stolen email addresses. The unsolicited emails received through Nguyen’s and Vu’s spam attacks enticed the recipients by promoting specific products and providing hyperlinks for the recipients to purchase the products. The hyperlinks directed the recipients to one of Nguyen’s affiliate marketing websites associated with Marketbay.com.

Da Silva allegedly knew that Nguyen was spamming to stolen email addresses in order to direct high volumes of internet traffic to his affiliate marketing websites with Marketbay.com. Da Silva allegedly conspired with Nguyen and others to promote Nguyen’s hacking and spamming activities by providing him with a platform, through Marketbay.com, to generate sales commission from his computer hacks into the ESPs. Between approximately May 2009 and October 2011, Nguyen and Da Silva received approximately $2 million for the sale of products derived from Nguyen’s affiliate marketing activities.

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

This case is being investigated by the Federal Bureau of Investigation with the valuable assistance of the United States Secret Service and Internal Revenue Service Criminal Investigation.  Law enforcement in the Netherlands also provided valuable assistance.

Assistant United States Attorney Steven D. Grimberg and Trial Attorney Peter Roman with the U.S. Department of Justice Computer Crime and Intellectual Property Section are prosecuting the case.

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 - Tammi Stephens, Daynna Gregory, and Richard Cantrell have been arraigned on federal charges of theft of public funds and conspiracy stemming from an alleged check fraud scheme to steal from a victims’ restitution fund controlled by the Georgia Department of Corrections, where Stephens and Gregory worked until recently. 

“These defendants are charged with stealing from a fund set up to compensate victims of crime,” said Acting U.S. Attorney John Horn.  “At the time of their alleged actions, Stephens and Gregory were Georgia Department of Corrections employees, holding positions in which they were responsible for issuing checks to crime victims.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The allegations contained within this federal indictment involve a serious breach of trust by these defendants.  The FBI remains committed toward investigating and presenting for prosecution those individuals who would use their positions of trust within government for personal gain.”

“The abuse of public trust by Stephens and Gregory as state employees, and their betrayal of the victims we serve are actions that won’t be tolerated,” said Homer Bryson, Commissioner of the Georgia Department of Corrections.  “We appreciate the swift response by the FBI, and the diligence of our staff in identifying this serious breach.  We are committed to fully cooperating and assisting with the investigation and prosecution of these former employees,” added Bryson.

According to Acting U.S. Attorney Horn, the indictment, and other information presented in court: From September 2013 to June 2014, Stephens and Gregory used their positions as clerks in the Georgia Department of Corrections’ banking unit to issue fraudulent checks drawn on a fund established to provide restitution to victims of other crimes.  The indictment further alleges that Stephens and Gregory made the checks payable to a flower shop owned by Cantrell, who was not an employee of the Department.  The defendants purposely issued fraudulent checks to the flower shop in order create the appearance that the restitution checks were being paid to real crime victims.  After printing the fraudulent checks, Stephens and Gregory allegedly altered the Department’s financial records to hide their theft.  The fraudulent checks were then delivered to Cantrell, who cashed them and split the proceeds with Stephens and Gregory.  In total, the defendants allegedly stole more than $232,000, which they then spent at big box stores and department stores.
Tammi Stephens, 37, of Forsyth, Georgia, Daynna Gregory, 41, of Lithonia, Georgia, and Richard Cantrell, 54, of Marietta, Georgia were indicted by a federal grand jury on March 3, 2015.  All three defendants were arraigned this afternoon before Magistrate Judge E. Clayton Scofield, III.

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 Kurt R. Erskine and Special Assistant United States Attorney Trevor C. Wilmot 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 - Gregg A. Kaminsky has been sentenced for wilfully failing to file a Foreign Bank Account Report with the U.S. Department of Treasury in connection with his concealment of income and assets in accounts in Switzerland, Hong Kong, and Thailand over several years, as well as his failure to report certain income earned in the virtual world, “Second Life.”

“Federal tax revenue is crucial to protecting our borders; fighting terrorism, cybercrime, and other national security threats; providing disaster relief; and to performing other critical government functions,” said Acting U. S. Attorney John Horn.  “This office is committed to investigating and prosecuting those who intentionally avoid paying their fair share, whether their schemes involve income earned or hidden offshore, here at home, or even in a virtual world.”

“U.S. citizens who seek to avoid their tax obligations by hiding income in undeclared bank accounts abroad should by now be fully on notice that they will be held accountable for their actions, both civilly and criminally,” stated IRS Criminal Investigation Special Agent in Charge, Veronica F. Hyman-Pillot. “Americans who file accurate, honest and timely returns can be assured that the government will hold accountable those who don't.”

According to Acting U.S. Attorney Horn, the charges and other information presented in court:  Citizens and residents of the United States who have a financial interest in, or signature authority over, a financial account in a foreign country with an aggregate value of more than $10,000 at any time during a calendar year are required to file with the U.S. Department of Treasury a “Report of Foreign Bank and Financial Accounts,” commonly referred to as the “FBAR.”  The FBAR for the applicable year must be filed by June 30 of the following year.

Kaminsky is an Internet entrepreneur who serves as the Chief Executive Officer of Circlenet LLC, based in Atlanta, Georgia.  From 2000 through mid-2009, Kaminsky owned and controlled a foreign bank account with Union Bank of Switzerland AG (“UBS”), one of the biggest banks in Switzerland and largest wealth managers in the world.  By 2006, Kaminsky’s UBS account held approximately $1.1 million.  From time to time between 2002 and 2009, Kaminsky caused funds to be wire-transferred from his UBS account in Switzerland to other foreign bank accounts controlled by him in Thailand and Hong Kong.  Also during that time, Kaminsky caused his income from at least two different U.S. companies to be direct-deposited into his UBS account in Switzerland.

Yet, over this period, Kaminsky did not disclose his UBS account or other foreign financial accounts to the U. S. Treasury Department as required, and thereby concealed several hundred thousand dollars in taxable income, interest, and dividends from the U.S. Internal Revenue Service (IRS).

In addition, in 2007 and 2008, Kaminsky omitted his UBS account and associated income from Free Applications for Federal Student Aid (FAFSA) that he electronically filed with the U.S. Department of Education in order to qualify for need-based federal financial aid to fund his tuition for an Executive MBA program at Emory University.  At the time of the FAFSA applications, Kaminsky controlled over a half million dollars in his UBS account, which would have made him ineligible for federal student loan assistance.

On June 30, 2008, the U.S. Department of Justice sought court approval to compel UBS to disclose the identities of U.S. account holders who may be using UBS accounts to hide assets overseas and thereby evade U.S. taxes.  The request and the order authorizing it were widely reported by the media throughout the United States, and this coverage continued throughout 2008 and 2009 as the U.S., UBS, and Switzerland negotiated a resolution and UBS began disclosing U.S. account holders to the IRS.

Following this news, Kaminsky closed his UBS account and transferred the balance of his UBS account to an account that he controlled at HSBC Bank in Hong Kong.  Further, in spring 2010, Kaminsky filed FBARs for his Swiss and Hong Kong accounts for the very first time, also filing amended individual income tax returns for 2007 and 2008 that disclosed the previously unreported income in his UBS account.  However, in his amended 2007 and 2008 returns, and in his subsequently filed returns for 2009 through 2012, Kaminsky still failed to report nearly $150,000 in taxable income earned from his business activities in the virtual world, “Second Life.” 

Participants in Second Life, referred to as “residents,” can engage in a wide variety of business activities, including buying, renting, and sub-leasing virtual land and buying and selling other virtual goods, services, and experiences for their “avatars.”  Transactions are conducted using a virtual currency, “Linden Dollars.”  Linden Dollars can be bought and traded on the “Linden Exchange,” and are redeemable for cash. 

Including his virtual world income, Kaminsky failed to report over $400,000 in income to the IRS between 2000 and 2012, resulting in a loss to the IRS of approximately $125,000.

Kaminsky, 46, of Atlanta, Georgia, was sentenced today to serve four months in federal prison to be followed by two years of supervised release, two months of home confinement, and 200 hours of community service.  Kaminsky was also ordered to pay restitution to the IRS in the amount of $91,983.  Kaminsky was convicted on these charges on December 18, 2014, after he pleaded guilty.  As part of his plea agreement with the United States, Kaminsky was also required to pay a civil penalty to the IRS in the amount of $250,635.20, which is equivalent to fifty percent of the value of the balance in Kaminsky’s HSBC account in Hong Kong as of June 30, 2009.  

This case was investigated by Special Agents of the Criminal Investigation Division of the Internal Revenue Service.  Valuable assistance was also provided by Special Agents of the U.S. Department of Education, Office of Inspector General.

Assistant United States Attorney David M. Chaiken prosecuted the case.

Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, 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/gan/

ATLANTA - Donald Thomas, the former payroll director for the Grady Memorial Hospital Corporation, was sentenced to seven years, three months in prison for stealing nearly half a million dollars from the longstanding public institution. 

“As a result of the defendant’s embezzlement, Grady Hospital lost hundreds of thousands of dollars that otherwise would have gone towards patient care,” said Acting U.S. Attorney John Horn.   “Grady has made monumental changes to restore its financial health, and Thomas used his position of trust at the hospital to harm these efforts simply for his own personal gain. Today he goes to prison.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “This sentencing is the price paid for stealing funds from a valued health care institution such as Grady Hospital.  The FBI will continue to provide investigative assistance to help protect these institutions that give so much back to their community as Grady does.”

According to Acting U.S. Attorney Horn, the charges and other information presented in court: From December 1994 through June 2011, Thomas served as Assistant Controller for Grady Memorial Hospital Corporation.  Grady Hospital has provided health care to thousands of Atlanta-area residents – a large portion of whom are uninsured – for over one hundred years.  It has long provided low-cost or free medical care to indigent patients. 

While serving as payroll director, Thomas had nearly exclusive control over Grady’s payroll systems.  For over three of those years, he falsified additional vacation pay and severance pay for former Grady employees and had the funds deposited into his own accounts.  Because Thomas was careful about reversing his fraudulent changes to the payroll system and had most of the funds deposited into a business account, rather than his own, the scheme went undetected.  Thomas was laid off in a workforce reduction in 2011, before the fraud was discovered. 

Prior to leaving Grady in 2011, Thomas became less careful about covering his tracks, and as a result, some of the falsified pay was reported as income on the former employees’ federal W-2 tax forms.  In early 2012, one of those employees noticed the inflated income amount and reported it to Grady.  Further investigation led to the discovery of 136 fraudulent transactions in all.  Over the course of the scheme, Thomas stole over $480,000. 

Thomas, 55, of Atlanta, Georgia, was sentenced by U.S. District Judge Charles A. Pannell, Jr. to seven years and three months in federal prison and three years of supervised release, and ordered to pay $482,851.76 in restitution to Grady Hospital.  On December 5, 2014, a jury convicted Thomas of six counts of theft from an organization receiving federal funds, six counts of wire fraud, and two counts of bank fraud.  At trial, witnesses from Grady explained how Thomas manipulated the payroll system, as well as the effect of the financial loss on Grady’s ability to provide medical services.  

This case was investigated by the Federal Bureau of Investigation.

Assistant U.S. Attorneys Shanya Dingle and G. Scott Hulsey 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 - DeMarco Doxie has been sentenced to four years and five months in prison for his theft of more than $1 million from his former employer, Ennis Paint (currently known as Ennis-Flint).

“The defendant manipulated, lied to, stole from, and violated the trust of his employer.  He created a fictitious company to bill Ennis for environmental and safety compliance work that his made-up company never performed, and then used a significant portion of the stolen money to upgrade and remodel his home,” said Acting U.S. Attorney John Horn.  

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Extensive white collar based fraudulent schemes can, over time, add up to significant loss amounts for the victim companies, as seen in this case.  Mr. Doxie, the defendant in this matter, displayed extensive disregard for his employer and will now be held accountable for his criminal conduct.”

“In addition to stealing from his employer, Mr. Doxie concealed the income and failed to pay taxes on it,” stated IRS Criminal Investigation, Special Agent in Charge, Veronica F. Hyman-Pillot. “Individuals who line their pockets with profits from fraudulent schemes should know the money is taxable and you will be held accountable."

According to Acting U.S. Attorney Horn, the charges and other information presented in court: Doxie was the former Corporate Environmental Health & Safety Manager for Ennis Paint.  Ennis, headquartered in Dallas, Texas, manufactures and sells a variety of road marking and pavement surface treatments. Ennis maintains a facility in Atlanta, Georgia, where Doxie worked.

During more than four years of his employment, from June 2007 through August 2011, Doxie used a sham business that he created and owned – Outlook Environmental & Safety Solutions, LLC (Outlook) – as his main vehicle to systematically embezzle large sums of money from Ennis.

Beginning in June 2007, Doxie began creating fictitious invoices for environmental work that Outlook had supposedly performed for Ennis Paint, when Doxie was well aware that Outlook had not performed any such work and had no employees.  Ennis Paint was never informed by Doxie that he was the actual owner of Outlook while Doxie was submitting fraudulent invoices to Ennis Paint for payment to Outlook, and would never have paid the invoices had it known.

Doxie also defrauded Ennis by using an American Express Corporate Card issued by Ennis Paint that was supposed to be used for Ennis expenses.  Doxie used the American Express company credit card to make payments to Outlook even though Outlook had not performed any work for Ennis.  Ennis Paint paid the monthly bill on Doxie's American Express card.  Ennis Paint would not have approved the payments if it knew that Doxie was the true owner of Outlook, a fact that Doxie intentionally concealed from Ennis.  Doxie also paid for some of his personal expenses using his Ennis-issued credit cards in 2011.  In total, Doxie stole more than $1 million from Ennis paint as a result of his fraudulent schemes.  Additionally, Doxie was convicted of filing false tax returns, because he under-reported his actual income to the IRS for tax years 2008, 2009, 2010, and 2011 by failing to include the income that he had received from the fraud. As a result, Doxie underpaid his taxes by nearly $300,000.

Doxie, 44, of South Bend, Indiana, was sentenced to four years, five months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $1,008,417.49 to Ennis Paint and $299,750 in restitution to the IRS.  Doxie was convicted of these charges on September 29, 2014, after he pleaded guilty to all the charges in the indictment.

This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation.

Assistant U.S. Attorneys Glenn D. Baker and 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/.

ROME, Ga. – Felix Moreno-Garcia and Fabian Pineda-Garcia have been sentenced for possessing over four pounds of methamphetamine with the intent to distribute.

“These brothers were significant contributors to the Northwest Georgia methamphetamine market,” said Acting U.S. Attorney John Horn.  “Thankfully, DEA agents and the Lookout Mountain Drug Task Force successfully put an end to this family drug dealing business.”

Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division stated, “These methamphetamine distributors were driven by greed and power. Today they stand powerless and will spend well-deserved time in prison. This case would not have been possible without the high level of cooperation between our law enforcement counterparts.”

According to Acting United States Attorney Horn, the charges and other information presented in court:  In July 2012, the Lookout Mountain Judicial Circuit Drug Task Force (“Lookout Mountain Task Force”) initiated an investigation of a Mexican drug trafficking organization operating out of Chattooga County, Georgia.  The Lookout Mountain Task Force developed an informant who provided information regarding Fabian Pineda-Garcia’s narcotics trafficking. 

In August 2012, the DEA joined the investigation focusing on Fabian Pineda-Garcia’s brother, Felix Moreno-Garcia.  Agents conducted a series of controlled purchases before successfully introducing an undercover officer to Moreno-Garcia in November 2013.  Moreno-Garcia sold the undercover officer multi-ounce quantities of methamphetamine on several occasions.  On March 19, 2014, Moreno-Garcia sold the undercover officer eight ounces of methamphetamine in the parking lot of the Wal-Mart in Trion, Georgia.  Immediately after the sale, officers arrested Moreno-Garcia before he could leave the parking lot.  Later that evening, agents executed search warrants at four locations, including a residence in Trion, Georgia.  There, law enforcement officers discovered three and a half pounds of methamphetamine hidden under a mattress in a bedroom.  Agents also located a 12-gauge shotgun in the corner of the bedroom.  Agents arrested Fabian Pineda-Garcia and an unindicted coconspirator at the residence. 

Both Moreno-Garcia and Pineda-Garcia were convicted of conspiring to distribute methamphetamine upon their pleas of guilty on November 19, 2014.

Felix Moreno-Garcia, 33, of Trion, Georgia, was sentenced to 15 years, four months in prison to be followed by five years of supervised release.  Fabian Pineda-Garcia, 34, also of Trion, Georgia, was sentenced to ten years, one month in prison to be followed by five years of supervised release.  Both were sentenced by United States District Judge Harold L. Murphy.

This case was investigated by the Drug Enforcement Administration and Lookout Mountain Judicial Circuit Drug Task Force.

Assistant United States Attorney C. Brock Brockington 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 Rome Division is http://www.justice.gov/usao/gan/.

ATLANTA – Eugene Harvey, a former baggage handler for Delta Air Lines, has been arraigned on federal charges of conspiring to carry dangerous weapons on an aircraft, firearms trafficking, and illegally entering an airport area to evade security and commit crimes.  Harvey was indicted by a federal grand jury on February 18, 2015.

“The indictment alleges that Harvey used his security badge again and again to bypass security and avoid screening, so that he could smuggle over one hundred firearms - many loaded - onto passenger planes” said Acting U.S. Attorney John Horn. “Reducing firearms trafficking is a priority for this office, especially when it threatens the safety of passengers at our airports.”
 
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI continues to play a vital role in working with its many law enforcement partners in ensuring that our nation’s airports and those traveling in and out of them remain safe.  Those who violate procedures in place that jeopardize that security will be investigated and presented for federal prosecution.”

According to Acting U.S. Attorney Horn, the charges, and other information presented in court: Throughout 2014, Harvey, then a baggage handler for Delta Air Lines, worked with another former Delta employee to smuggle firearms through airport-controlled security checkpoints and onto planes.  Specifically, after using his security badge to smuggle the firearms into the secure area of Hartsfield-Jackson, Harvey would transfer the firearms to his accomplice who would then conceal the firearms in his carry-on luggage and take the firearms into the passenger cabins of flights traveling between Atlanta and New York's JFK and LaGuardia Airports.  Harvey's accomplice then flew to New York with the guns, where they were illegally sold.

The federal investigation into Harvey began when the New York Police Department (NYPD) and the Kings County, New York, District Attorney's Office notified the FBI that a then-unidentified individual was helping a gun-trafficker move guns illegally from Georgia into New York.  By that time, the NYPD had identified and arrested the New York seller of the illegal firearms, and was working with Atlanta FBI to investigate how the guns were being smuggled into New York.  Upon learning the firearms were being smuggled by passenger plane, Delta Airlines worked closely with law enforcement to identify Harvey and immediately terminated him.

Since January 2014, Harvey trafficked 135 firearms between Georgia and New York.  The last shipment on December 10, 2014, contained 18 firearms, 7 of which were loaded. 

Harvey, 31, of College Park, Georgia, was arrested on December 20, 2014, and was arraigned before U.S. Magistrate Judge E. Clayton Scofield III.  Members of the public are reminded that the indictment only contains charges.  The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.

This case is being investigated by the Federal Bureau of Investigation, the U.S. Federal Air Marshal Service, and the Transportation Security Administration.

Assistant United States Attorneys L. Skye Davis and Kim S. Dammers 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 - Daphne Maria Patterson has been arraigned on federal charges of health care fraud and aggravated identity theft.  She allegedly stole patients and their family member’s identities and billed insurance providers for services she did not render.  Patterson was indicted by a federal grand jury on February 17, 2015.

“This health care provider is charged with committing an egregious violation of her patients’ trust.  The indictment alleges that she not only used patients’ information to submit false claims to insurance companies, she also tried to make even more profits by stealing the personal information of patients’ family members and filing additional false claims on their behalf,” said Acting U.S. Attorney John Horn. “When someone steals money through health care fraud, it’s not just a matter of illegal profit by the thief, as the theft impacts all of our medical costs.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Health care programs are critical to those who are truly in need. Such conduct by those individuals who would divert those much needed but limited funds for personal gain should not and will not be condoned. The FBI takes all allegations of health care fraud very seriously and will continue to work with its various law enforcement partners to present for prosecution those individuals involved in this criminal activity.”

“Thanks to the combined efforts of my office and federal agencies, I believe we have stopped a major perpetrator of insurance fraud,” said Georgia Insurance Commissioner Ralph Hudgens.  “I credit the excellent investigative work by all agencies with breaking this case open.”

According to Acting U.S. Attorney Horn, the charges, and other information presented in court: Daphne Patterson is a registered nurse practitioner and owner of Healthier U 4 Ever Wellness Center, a clinic in Stone Mountain, Georgia. The indictment alleges that while employed with another medical practice in Lawrenceville, Georgia, Patterson stole the personal information of her patients to file false claims with United Insurance Company for various allergy tests and treatment that the patients never received. Additionally, she used her access to the patients’ personal information in order to steal family members’ identifying information and to seek further reimbursement from United for services she had not rendered to patients she had never seen.

The indictment further alleges that after leaving the medical office and opening her own clinic in Stone Mountain, Patterson continued the fraudulent scheme by billing several insurance companies for allergy tests and treatments that she did not provide to her patients. In total, Ms. Patterson obtained more than $1 million from the insurance companies on the basis of her false claims.

Daphne Maria Patterson, 44, of Stone Mountain, Georgia, was arraigned before U.S. Magistrate Judge E. Clayton Scofield III.  Members of the public are reminded that the indictment only contains charges.  The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.

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

Assistant United States Attorney Jamie 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/gan/.

ATLANTA – John Boyer, the husband of former DeKalb County, Georgia, Commissioner Elaine Boyer, has pleaded guilty to stealing county money that was paid to a third party, who then funneled the funds into a personal bank account used by the Boyers.  The plea stems from Elaine Boyer’s conviction on similar charges in September, 2014.

“John Boyer exploited his wife’s position as a DeKalb County Commissioner to steal thousands of dollars in county funds. The Boyers’ scheme put tax payer money in their pockets – and left the citizens of DeKalb County with the tab,” said Acting U.S. Attorney John Horn.

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The use of public office for personal gain is a serious breach of trust that should not be tolerated.  The FBI has ranked public corruption as its number one criminal program priority due to its vast harm created along many lines and asks that anyone with information regarding such activity to please contact their nearest FBI field office.”

According to Acting U.S. Attorney Horn, the charges, and other information presented in court: In DeKalb County, Georgia, the Board of Commissioners serves as the legislative branch of the DeKalb County Government. The Board of Commissioners is comprised of seven part-time commissioners, who are elected to serve four-year terms. Each of the seven Commissioners is responsible for the management of their respective offices, which includes controlling the offices’ budget and hiring staff members, contractors, and consultants. In recent years, the operating budget for a Commissioner’s office has been approximately $250,000 per year. The Commissioners may use their budget only for county-related business.  In 1992, Elaine Boyer began serving as the Commissioner of District 1, which serves citizens in north DeKalb County, including in Brookhaven, Dunwoody, Tucker, and Smoke Rise, Georgia. In August 2014, Elaine Boyer resigned as the Commissioner of District 1.

In 2009, Elaine and John Boyer experienced financial difficulties. As a result, John Boyer devised an unlawful kickback scheme to obtain money from DeKalb County. In particular, in or about September 2009, Elaine Boyer, as the Commissioner of District 1, hired a family friend as a political advisor (“Advisor”), allegedly to assist her with government consulting.

From September 2009 to November 2011, false invoices were submitted to Elaine Boyer’s office for services supposedly rendered by Advisor. In fact, Advisor performed no services for DeKalb County. Elaine Boyer used the false invoices as the basis to authorize payments to Advisor. Based on requisition requests from Elaine Boyer, DeKalb County mailed approximately 35 checks, via the United States Postal Service, to Advisor for consulting services that were never performed. In total, DeKalb County paid Advisor more than $80,000.

John Boyer then instructed Advisor to deposit the money that the Advisor received from DeKalb County into a bank account used by Elaine and John Boyer. Consequently, after being paid by DeKalb County, Advisor funneled approximately $60,000 received from DeKalb County into a personal bank account used by the Boyers. In turn, the Boyers used the money deposited into the account to pay personal living expenses.

On September 3, 2014, Elaine Boyer, 58, of Stone Mountain, Georgia, pleaded guilty to one count each of conspiring to commit mail fraud and wire fraud. Ms. Boyer is scheduled to be sentenced before U.S. District Judge Orinda D. Evans on March 20, 2015, at 1:30 p.m.

John Boyer, 62, of Stone Mountain, Georgia, was charged via a criminal information with conspiring to commit mail fraud. Boyer pleaded guilty to that charge. In determining Boyer’s sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders. 

The sentencing hearing for Mr. Boyer is scheduled for May 6, 2015, at 2:00 p.m., also before Judge Evans.

This case is being investigated by Federal Bureau of Investigation.

Assistant U.S. 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 - Paul Anderson has been sentenced to six years and eight months in prison for his role in a scheme to defraud Northwest and Delta Air Lines of more than $36 million.  Anderson and his co-defendant Michael Yedor submitted false invoices to both airlines, for work that was not performed but was billed for by a company allegedly owned by Yedor.

“The defendant’s lucrative and long-running scheme came crashing down when Delta uncovered his deception and informed law enforcement,” said Acting U.S. Attorney John Horn. “For more than a decade, Anderson used his position of trust within these airline companies to steal millions of dollars from the airlines for himself and a codefendant.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI remains well positioned and committed toward investigating those individuals who would engage in such complex wire fraud based schemes that generate high loss amounts as seen in this case.  The sentencing of Mr. Anderson brings to a close a lengthy fraud scheme that spanned almost 15 years and targeted two major airlines.”

According to Acting U.S. Attorney Horn, the charges and other information presented in court: Anderson had been an employee of Northwest Airlines since 1979.  In 2008, Delta Air Lines purchased Northwest. The two airlines merged into a single company in December 2009, at which time Anderson became a managerial employee of Delta, working in its Minneapolis, Minnesota office. 

From at least 1999 through 2013, Anderson and co-defendant Michael Yedor engaged in a scheme to defraud Northwest and later, Delta, by submitting numerous false invoices on behalf of a company purportedly owned by Yedor, Airborne Voice and Data. The invoices sought payment from the airlines for goods provided and services supposedly rendered by Airborne Voice and Data, when in fact both Anderson and Yedor knew that Yedor’s company had not provided any such goods or services.

In order to receive payment for the false invoices, Yedor sent the invoices to Anderson, who had the authority to approve them for payment.  Once Anderson approved the invoices, falsely indicating that the goods or services had been received, the airlines issued payments to Airborne Voice and Data. In exchange for approving each of the invoices, Anderson received a portion of the proceeds of the fraud. The defendants acknowledged that they received more than $36 million from the airlines during the scheme.

Anderson, 57, of Apple Valley, Minnesota, was sentenced by U.S. District Judge Timothy Batten to six years, eight months in prison, to be followed by three years of supervised release.  He was also ordered to pay restitution of more than $36 million and to forfeit his individual retirement accounts.  Anderson was indicted on June 10, 2014, and pleaded guilty on September 15, 2014, to conspiracy to commit mail fraud.

Co-defendant Michael Yedor, 62, of Los Angeles, California, was sentenced on January 9, 2015, by U.S. District Judge Timothy Batten to ten years in prison, followed by three years of supervised release. He was also ordered to pay restitution of more than $36 million, in addition to a personal money judgment of more than $36 million, and forfeiture of his interest in an array of real properties and luxury goods, including a Beverly Hills mansion and a 71.9 foot yacht. 

Delta Air Lines cooperated fully with the investigation.

This case was investigated by the Federal Bureau of Investigation.

Assistant U.S. Attorneys Glenn D. Baker, Jamie L. Mickelson, and Jenny 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 - Kenneth Horner and his wife Kimberly Horner have been found guilty of tax fraud following a three-day jury trial for skimming more than $1.5 million in cash from their business without disclosing the income.

“This jury recognized the defendants’ handling of cash for what it really was: a ploy to avoid disclosing income and paying taxes,” said Acting U.S. Attorney John Horn. 

“In willfully failing to report their total business income to the IRS, the Horners cheated the system and dodged the same basic responsibility that millions of other business owners comply with every year:  fairly and honestly reporting their earnings,” said Principal Deputy Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.  “Today’s verdict establishes that those who engage in such criminal conduct will be held accountable. The Tax Division is committed to working with its law enforcement partners to identify, investigate and vigorously prosecute these offenders.”

“At this time of year, when hard-working citizens are sitting down to prepare their tax returns, it is especially disappointing to see the overt steps some individuals will take to hide their taxable funds from the government,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation.  “Taxpayers deserve our vigilance in the investigation and prosecution of individuals who willfully underreport their income and evade the payment of their fair share of taxes.”

According to Acting United States Attorney Horn, the charges and other information presented in court: Kenneth and Kimberly Horner owned Topcat Towing and Recovery, Inc. (“Topcat Towing”), a towing business in Lithonia, Georgia.  Between 2005 and 2008, Topcat Towing had an exclusive contract with DeKalb County, Georgia, for all county car tows needed from the south precinct of the county.  Between 2005 and 2008, the defendants skimmed more than $1.5 million in cash receipts from their towing business and deposited those cash receipts into their personal bank account without disclosing the income to their tax return preparer or on corporate and personal tax returns filed with the IRS. The defendants tried to conceal their cash deposits from the government by “structuring” their deposits, which is the act of splitting up cash deposits that exceed $10,000 for the purpose of evading a Currency Transaction Report from being filed.

Most financial institutions, including banks, are generally required to file Currency Transaction Reports (CTRs) for cash transactions that exceed $10,000.  CTRs are submitted to the U.S. Department of Treasury.  In 2007 and 2008, the defendants used their unreported cash, in part, to build a custom home in Conyers that was appraised at more than $900,000.  The defendants owe approximately $400,000 in taxes to the IRS for their unreported income.

The defendants were charged with filing false corporate and personal tax returns for the years 2007 and 2008.  They were convicted of all four counts charged. 

Sentencing for Kenneth Horner, 58, and Kimberly Horner, 53, both of Milledgeville, Georgia, is scheduled for May 6, 2015, at 10:00 a.m. before U.S. District Judge Timothy C. Batten Sr.

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

DOJ Criminal Tax Division Trial Attorney Christopher J. Maietta and Assistant U.S. Attorney Steven D. Grimberg are prosecuting the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the 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 – Jeremy “Jerry” Clark, a former member of the DeKalb County Zoning Board of Appeals, has pleaded guilty to a federal bribery charge.  Clark accepted money in exchange for his vote allowing a business to operate as a late-night dance club.

“It took only $3,500 to subvert the purpose of this DeKalb zoning ordinance, which was to regulate the operation of late-night nightclubs,” said Acting United States Attorney John Horn. “This case demonstrates how a corrupt public official can sell out the legitimate interests of the communities and citizens he serves, solely for his own profit.  DeKalb County citizens deserved better.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The guilty plea of Mr. Clark should remind those in public office of the serious consequences of succumbing to the temptations that can come their way.  The FBI’s Public Corruption Program remains prepared to identify, investigate, and present for prosecution those individuals who would abdicate their integrity for personal greed.”

According to Acting United States 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 placement and operation of late-night establishments and nightclubs. As a general matter, the ordinance mandated 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.

In DeKalb County, the Zoning Board of Appeals hears and decides zoning appeals when a property owner alleges that a county official committed a zoning error.  From January 2009 to May 2013, Clark served as a member of the Zoning Board of Appeals.

Based on the zoning change, in September 2012, the DeKalb County Department of Planning and Sustainability issued a warning to the owner of a late-night establishment in Tucker, Ga., (“Business Owner”), advising him that the establishment could not operate as a nightclub without a Special Land Use Permit. The Business Owner responded that the establishment 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. Notably, almost a year earlier in November 2011, the Department of Planning and Sustainability had advised the late-night establishment in writing that it was grandfathered in only as a late-night business, could not operate as a nightclub, and could not have a dance floor. 

Ultimately, the Business Owner appealed the decision to the DeKalb County Zoning Board of Appeals.  Prior to the hearing on the appeal, Clark met with the Business Owner. During those meetings, the Business Owner made it clear to Clark, that if the Zoning Board of Appeals approved the Business Owner’s request to operate as a nightclub, Clark would be rewarded. In November 2012, the Zoning Board of Appeals approved the Business Owner’s request to operate as a nightclub. Clark voted in favor of the Business Owner.  Thereafter, the Business Owner paid Clark approximately $2000 in cash and donated approximately $1,500 to a non-profit interest with which Clark was involved.

On February 10, 2015, Clark, 42, of Lithonia, Ga., was charged in a criminal information with one count of bribery.  The sentencing hearing is scheduled for April 30, 2015, at 10:00 a.m., before United States District Judge Leigh Martin May.

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

Assistant United States Attorney Jeffrey 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 – Miguel Guevara, Irvin Mejia Cruz, and Walter Aldana - members of the street gang known as Mara Salvatrucha 13, or MS-13 - have been sentenced for violent crimes they committed, including the murder of one man and the shootings of two others, one of whom was a 14-year-old boy.

“The gratuitous acts of violence these now-convicted gang members committed were intended to spread fear of their gang throughout the community,” said Acting United States Attorney John Horn. “Gangs like MS-13 have worked to establish a foothold in counties outside of Atlanta for years, and this case reveals the worst of the senseless violence that can arise from their activities—shooting at cars on the highway, or firing a gun into a group of middle school students playing basketball.  This case also highlights the difficulties faced by youths who try to escape from the gang culture, as a murder occurred simply because a gang member wanted to drop out.  Our strategy in cases like this is to decimate the entire gang structure, and eradicate the gang activity so that our citizens can go about their lives safely.”

“Violent criminal street gangs like MS-13 threaten everyone in our communities,” said Ryan L. Spradlin, acting special agent in charge of ICE Homeland Security Investigations in Atlanta. “These sentences, and the dozens of other convictions that resulted from this massive investigation, have made Atlanta neighborhoods safer places to live.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The lengthy federal prison sentences handed down to these three violent members of MS-13, a Central American based gang known for its violence, will not only make our community safer but will send a message to other gang members that the FBI and its law enforcement partners will aggressively continue its efforts to disrupt and dismantle these organized crime groups such as MS-13.”

According to Acting United States Attorney Horn, the charges and other information presented in court:  MS-13 is an international gang that has operated in the greater Atlanta, Ga, area since at least 2005.  During the course of this investigation, which ended in 2010, more than 75 MS-13 members were arrested, charged, and/or deported.  MS-13 members were organized into “cliques,” or groups, but they operated under the larger umbrella of MS-13.  Each clique had a leader, often referred to as “the first word,” who conducted weekly meetings.  At these meetings, members discussed their crimes against rival gang members and their plans to retaliate against rivals.  The clique leaders collected dues from the gang members, which they used to buy guns and post bail for jailed gang members.  Clique leaders often sent money back to MS-13 leaders in their home countries of El Salvador and Honduras, and clique leaders often reported back to MS-13 leaders in their home countries about MS-13 activities in the Atlanta area.  The gang members staked out Gwinnett and DeKalb Counties as their home territory, where they committed murders, attempted murders, and armed robberies.

The evidence gathered during the investigation reflected that Miguel Guevara, a/k/a Blacky, was a member of MS-13 in 2006.  He decided that he wanted to become less active in the gang and sought permission to “calm down” from the leader of his clique, Miguel Alvarado-Linares, a/k/a Joker.  Alvarado-Linares discussed this with other members at a meeting of the clique on December 23, 2006.  Everyone agreed that Guevara would have to shoot at a suspected rival gang member before he could become inactive. They went to the nightclub El Chaparral on Buford Highway, in DeKalb County, Ga., where they waited outside looking for suspected rival gang members.

In the early morning hours of December 24, 2006, they saw Celso Villalobos and Angel Gonzales walk out of the nightclub and drive away in a Toyota Corolla.  As the Corolla pulled out of the parking lot, multiple MS-13 members began following it.  The Corolla got onto I-85 and headed north.  Guevara was in the passenger side of a Ford truck following the Corolla. The Ford truck pulled alongside the Corolla as it exited I-85 onto Highway 316 in Gwinnett County, Ga.  At that moment, Guevara fired multiple shots. He hit the passenger, Angel Gonzales, in the head.  He also struck the driver, Celso Villalobos, in the arm.  Villalobos drove Gonzales to the Gwinnett County Medical Center, where he died of the gunshot wound to the head.

The evidence gathered during the investigation also showed that Irvin Mejia Cruz, a/k/a Triste, a/k/a Lil Triste, and Walter Aldana, a/k/a Goofy, belonged to the same clique of MS-13.  On August 21, 2008, Mejia Cruz told Aldana that he would have to shoot someone if he wanted to earn more respect within the gang.  Mejia Cruz then gave a gun to Aldana.  Aldana left Mejia Cruz’s house and went a short distance where he saw a group of 13- and 14-year-olds gathered, some of whom were playing basketball.  Aldana asked, “Who do you claim?” (that is, what gang do you belong to?).  Without waiting for an answer, he started firing into the crowd and struck a 14-year-old boy in the back.  Aldana then called out “Mara Salvatrucha” as he fled on foot.  He returned the firearm to Mejia Cruz.  The 14-year-old boy underwent surgery to have the bullet removed.

Miguel Guevara, a/k/a Blacky, 31, of Fort Walton Beach, Fla., has been sentenced to 30 years in prison to be followed by five years of supervised release.  Guevara was convicted on these charges on Oct. 29, 2013, after he pleaded guilty.

Irvin Mejia Cruz, a/k/a Triste, a/k/a Lil Triste, 24, of Duluth, Ga., has been sentenced to nine years in prison to be followed by five years of supervised release.  He was convicted on these charges on Oct. 21, 2013, after he pleaded guilty.

Walter Aldana, a/k/a Goofy, 24, of Norcross, Ga., has been sentenced to ten years in prison to be followed by five years of supervised release. Aldana was convicted of these charges on Oct. 21, 2013, after he pleaded guilty.

To date, 22 defendants have been convicted of RICO conspiracy for their participation in the violent activities of MS-13.  16 of the 22 defendants have already been sentenced.  An additional 14 members of MS-13 were charged in separate indictments and have already been convicted and sentenced in federal court for their crimes as gang members.

This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Federal Bureau of Investigation, Gwinnett County Police Department, and DeKalb County Police Department.

Assistant United States Attorney Paul R. Jones and U.S. Department of Justice, Organized Crime and Gang Section, Trial Attorney Joseph K. Wheatley 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 - Bonnie Monique Youn has been arraigned on additional federal charges that she submitted false documentation on behalf of three new clients who were aliens seeking immigration status in the United States.  She has been charged with two new counts of visa fraud, two new counts of alien harboring, and two new counts of witness tampering. 

“The additional charges against this attorney reflect that her illegal actions on behalf of certain immigration clients are more extensive.  Instead of working within the bounds of the law, she filed false immigration documents with the U.S. Government and encouraged several clients to lie to federal agents who were conducting an investigation,” said Acting United States Attorney John Horn.

“The defendant, who swore to uphold the law, instead allegedly sought to enrich herself by undermining the integrity of our immigration system by filing false documents,” said acting Special Agent in Charge Ryan L. Spradlin, ICE Homeland Security Investigations in Atlanta. “To compound these initial crimes, the defendant now stands accused of tampering with witnesses in the investigation in a failed attempt to conceal her illicit activities. Creating vulnerabilities in our immigration system raises serious national security concerns that HSI will vigorously investigate.”

According to Acting United States Attorney Horn, the charges and other information presented in court: From February 9, 2009, to the present, for her personal financial gain, immigration attorney Bonnie Monique Youn encouraged and induced three aliens to reside in the United States in violation of the law.  Youn also engaged in visa fraud by filing documents that were false with respect to material facts.  Then, once the investigation into Ms. Youn was underway, she engaged in witness tampering by telling two aliens to provide false information to federal agents when they were questioned.  Youn also attempted to persuade one of the aliens to provide a false statement to a Federal grand jury. 

Bonnie Monique Youn, 45, of Atlanta, Ga., was arraigned today before United States Magistrate Judge Gerrilyn G. Brill.  The superseding indictment, which added charges against Youn, was returned by a federal grand jury on January 27, 2015.  Youn was previously released on a $25,000 unsecured bond, and ordered to surrender her United States passport.

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 Homeland Security Investigations (HSI) Document Benefit Fraud Task Force comprised of Special Agents with HSI, the United States Department of Labor-Office of the Inspector General, the United States Department of State, Diplomatic Security Service, as well as Fraud Detection/National Security Officers of the United States Citizenship and Immigration Services.

Assistant United States Attorneys Susan Coppedge and William L. McKinnon, Jr.  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 - Andrew Avery has been arraigned on federal charges of wire fraud and mail fraud stemming from an alleged investment fraud scheme. He was indicted by a federal grand jury on October 7, 2014.  Avery fled the country, but was extradited from Thailand and arrested on January 26, 2015.  He is currently in federal custody. 

“This defendant is charged with taking advantage of unknowing investors, stealing millions of dollars with false promises and misrepresentations about the profitability of purported Real Estate Investment Notes sold by New Day Atlanta Financial,” said Acting United States Attorney John Horn. 

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI fully understands that investment fraud in not a victimless crime and it is hoped that the indictment, apprehension and return to the U.S. of Mr. Avery will illustrate that to the many victims in this case.”

According to Acting United States Attorney Horn, the charges, and other information presented in court: From April 2007 through May 2010, the defendant allegedly operated a company called New Day Atlanta Financial (NDA).  Avery represented to potential investors that NDA sold “Real Estate Investment Notes,” or REINs, in a fund of “premium real estate investments” called “the Magnolia Fund.” 

According to NDA’s website and prospectus, the REINs were promissory notes that would mature after a one- to five-year period, earning the investors up to 13% interest.  The term “REIN” was invented by Avery, and a REIN is not an investment vehicle actually used by financial institutions.  The Magnolia Fund was a purported $6 million dollar portfolio of Atlanta, Ga., properties that would be profitable through rental income, lease purchase income, or future sales. 

Avery allegedly concealed the fact that NDA’s properties were worth far less than $6 million dollars.  In addition, Avery used investor funds to purchase businesses in his own name, and for his own personal expenses.  Over the course of NDA’s operation, over 70 investors lost over $3 million as a result of Avery’s misrepresentations.

In May 2010, the United States Securities and Exchange Commission filed a civil lawsuit in the Northern District of Georgia to shut down NDA.  Shortly after being deposed by the SEC in connection with the lawsuit, Avery left the United States for Thailand.  He was extradited from Thailand and arrested on January 26, 2015, and is currently in federal custody.  Andrew Avery, 39, was arraigned before United States Magistrate Judge Gerrilyn G. Brill.

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 Shanya J. Dingle is 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. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, 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/gan/.

ATLANTA - John Harold McGill, the former principal of Mt. Carmel Elementary School in Douglas County, Ga., has been sentenced to ten years in prison for using emails and text messages to attempt to entice a minor to engage in unlawful sexual activity.  McGill was arrested on March 2, 2014, and was convicted after a two-day trial in December 2014.

“It is deeply disturbing and disappointing that an elementary school principal would attempt to have sex with a thirteen-year-old girl,” said Acting United States Attorney John Horn. “We will continue to devote every resource possible to protecting children and prosecuting those who prey upon them.”

According to Acting United States Attorney Horn, the charges, and evidence presented in court: On Saturday, March 1, 2014, McGill responded to an Internet advertisement named “casual encounters,” purportedly posted by a mother who was seeking a man to introduce her thirteen-year-old daughter to sexual intercourse. McGill communicated with who he thought was the girl's mother by email and text throughout the evening and into early Sunday morning, March 2, 2014.

With his wife out of town at a conference, McGill put his children to bed, and then drove more than 50 miles from Douglasville, Ga., to Lithonia, Ga. He arrived at the mother's house at 1:45 a.m. with a condom in his pants pocket. But the “mother” was an FBI Task Force Officer, and McGill was arrested.

In addition to sentencing John Harold McGill, 57, of Douglasville, Ga., to ten years in prison, United States District Judge William S. Duffey ordered that McGill remain on supervised release for the rest of his life after his imprisonment ends.

This case was investigated by the Federal Bureau of Investigation, the Georgia Bureau of Investigation, the Cobb County Police Department, and the DeKalb County District Attorney’s Office.

Assistant United States Attorney William G. Traynor 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/.

GAINESVILLE, Ga. - Walt Verrill, who was a member of the Black Pistons Motorcycle Club, and Tony Parrott, who was an affiliate of the same motorcycle club, are the last two defendants in a long-term investigation of motorcycle gangs in North Georgia.  Both have been sentenced for possessing methamphetamine with intent to distribute.

“These sentencings close a comprehensive investigation into drug trafficking and illegal gun and explosives offenses by members of motorcycle gangs operating in North Georgia,” said Acting United States Attorney John Horn. “The case reflects our commitment to make sure the communities in North Georgia are safe, and prevent gang members involved in drug and gun offenses from establishing a foothold there.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “This sentencing concludes an extensive investigation by the FBI and its law enforcement partners into criminal activities associated with several biker groups located in the North Georgia region.  The FBI is well positioned to conduct and coordinate such investigations and will continue to work with area law enforcement in making sure that North Georgia remains free from such individuals and groups attempting to set up organized criminal enterprises.”

According to Acting United States Attorney Horn, the charges and other information presented in court: Beginning in mid-2010, the FBI conducted a long-term undercover investigation in north Georgia into allegations that members of the Outlaw Motorcycle Club, the Black Pistons Motorcycle Club, and other motorcycle clubs were engaged in various forms of criminal activity, including drug distribution and illegal firearms and explosives offenses. An undercover agent posed as a drug dealer from Florida who was looking to expand his drug dealing into North Georgia. He was introduced to members of the motorcycle clubs by a club member who was working as an informant for the FBI.

The undercover agent conducted actual and ruse drug deals in which he either bought methamphetamine from motorcycle club members or recruited club members to assist him in moving what they were led to believe were significant quantities of methamphetamine or cocaine from North Georgia to Tennessee. The undercover agent also obtained firearms from convicted felons and engaged two defendants in discussions about making an unregistered explosive device for him.

The investigation also took a side route into the Hispanic SUR-13 gang, which was operating in Hall County, Ga.  A second informant introduced SUR-13 gang members and affiliates to the undercover agent, and they then moved what they were led to believe were significant quantities of cocaine through Hall County, Ga., to Tennessee. The undercover agent also conducted illegal firearms transactions with SUR-13 gang members.

In mid-July 2012, the FBI learned that members of the Outlaw Motorcycle Club suspected that one of the FBI’s informants was working for the FBI. The undercover investigation was terminated at that time. On August 16, 2012, 22 defendants were arrested on drug, firearms, and obstruction of justice charges. Six other defendants were arrested later. Since then, 20 defendants have pleaded guilty to various charges, two defendants were convicted after jury trials, and five defendants were acquitted at trial. One defendant, David Rizo-Troncoso, absconded after he was released on bond. Rizo-Troncoso remains a fugitive.          

• Verrill, 50, of Sautee Nacoochee, Ga., has been sentenced by United States District Judge Richard W. Story to three years, four months in prison to be followed by four years of supervised release.  Verrill was convicted on these charges on July 23, 2013, after he pleaded guilty.

• Parrott, 38, of Ellijay, Ga., has been sentenced to two years, four months in prison to be followed by four years of supervised release.  Parrott was convicted on these charges on October 30, 2013, after he pleaded guilty.

• Winfred Turner, 63, from Watkinsville, Ga., was convicted at trial of conspiring to aid and abet and aiding and abetting the possession with intent to distribute cocaine. Turner was sentenced to five years in prison.

• Bobby McGlothlin, 50, of Murrayville, Ga., was convicted at trial of selling a firearm to a convicted felon with knowledge that the buyer had a felony conviction. McGlothlin was sentenced to four months in prison.

• Howard Haney, 44, Alpharetta, Ga., pleaded guilty to possession of methamphetamine with intent to distribute. Haney was sentenced to ten years in prison.

• Larry Samples, 45, of Hall County, Ga., pleaded guilty to conspiring to possess methamphetamine with intent to distribute and possession of a firearm during a drug trafficking crime. Samples was sentenced to ten years in prison.

• Dawen Lloyd, 50, of Winterville, Ga., pleaded guilty possession of a firearm during a drug trafficking crime. Lloyd was sentenced to five years in prison.

• James Brown, 43, of Danielsville, Ga., pleaded guilty to using a communication facility in furtherance of a drug trafficking crime. Brown was sentenced to two years in prison.

• Denny Riley, 38, of Avonmore, Penn., pleaded guilty to using a communication facility in furtherance of a drug trafficking crime. Riley was sentenced to one year and six months in prison.

• George Jordan, 48, of Hall County, Ga., pleaded guilty to using a communication facility in furtherance of a drug trafficking crime. Brown was sentenced to three years and six months in prison.

• Davey Honeycutt, 47, Gainesville, Ga., pleaded guilty to conspiring to aid and abet the possession of cocaine with the intent to distribute. Honeycutt was sentenced to five years in prison.

• Phillip Honeycutt, 48, of Gainesville, Ga., pleaded guilty to using a communication facility in furtherance of a drug trafficking crime. Honeycutt was sentenced to one year and six months in prison.

• Tom Coley, 60, Danielsville, Ga., pleaded guilty to conspiring to aid and abet the possession of cocaine with the intent to distribute. Coley was sentenced to three years and one month in prison.

• Brandon Musser, 29, Gainesville, Ga., pleaded guilty to conspiring to aid and abet the possession of cocaine with the intent to distribute.  Musser was sentenced to two years and four months in prison.

• Josue Guerrero, 22, of Gainesville, Ga., pleaded guilty to conspiring to aid and abet the possession of cocaine with the intent to distribute. Guerrero was sentenced to five years in prison.

• Jesse Castillo, 23, from Gainesville, Ga., pleaded guilty to using a communication facility in furtherance of a drug trafficking crime. Castillo was sentenced to one year and six months in prison.

• Reynol Castrejon, 33, of Gainesville, Ga., pleaded guilty to conspiring to possess methamphetamine with intent to distribute. Castrejon was sentenced to five years and six months in prison.

• Dan Redding, 28, of Justin, Texas, pleaded guilty to using a communication facility in furtherance of a drug trafficking crime. Redding was sentenced to one year and six months in prison.

• Franscisco Montano, 28, of Gainesville, Ga., pleaded guilty to conspiring to sell a firearm to a convicted felon. Montano was sentenced to five years in prison.

• Juan Pablo Hurtado, 26, of Gainesville, Ga., pleaded guilty to possessing a firearm with an obliterated serial number. Hurtado was sentenced to one year and six months in prison.

• Raymond Sellers pleaded guilty to conspiring to make and transfer a destructive device. Sellers was sentenced to two years and nine months in prison.

• George Norwood pleaded guilty to conspiring to make and transfer a destructive device. Norwood was sentenced to two years in prison.

The investigation was conducted by the FBI with assistance from the North Georgia Major Offenders Task Force and the Georgia Bureau of Investigation.

Assistant United States Attorneys William L. McKinnon, Jr. and Sally B. Molloy prosecuted these cases.

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

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the 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 - Nicholas L. Thomas has been sentenced to serve three years and ten months for conspiring to commit bank fraud by submitting fraudulent loan applications to a local car dealer.

“Thomas’s scheme represents a classic fraud conspiracy where false paperwork for car loans enabled him to steal the bank’s money and walk away with the cars,” said Acting United States Attorney John Horn.

“The United States Secret Service will continue to collaborate with our law enforcement partners to investigate and arrest those who commit bank fraud.  Today’s sentencing shows that those who ignore the law for their personal gain will face the consequences in court,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.

According to Acting United States Attorney Horn, the charges and other information presented in court:  In September 2013, Thomas and unindicted coconspirator C.W. met with a salesman at a Ford dealership in Sandy Springs, Georgia, and agreed to purchase three 2013 Ford Fusions in the name of a Georgia company whose identity they had stolen.  During the negotiations, Thomas and C.W. fraudulently represented that Thomas owned the company and was authorized by the company to purchase the vehicles.  Thomas and C.W. provided false information and fraudulent documents to the dealership and submitted false credit applications to a federally insured bank in order to obtain financing for the vehicles.

In reliance upon the false information and documents provided by Thomas and C.W., the bank made three loans totaling approximately $75,000, and the dealership delivered the vehicles to Thomas.  The evidence showed that Thomas and C.W. had engaged in similar conduct prior to this, and that the total loss to various banks as a result of the conspiracy exceeded $400,000.

Thomas, 31, of Atlanta, Ga., has been sentenced to three years, ten months in prison to be followed by five years of supervised release, and ordered to pay restitution in the amount of $400,518.19.  Thomas was convicted on these charges on October 10, 2014, after he pleaded guilty.

This case was investigated by the United States Secret Service.

Assistant United States Attorney J. Russell Phillips prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the 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 - Ryan Hornback, a former Cobb County Parks and Recreation employee who also ran a photography business as a second job, has been sentenced to 20 years in prison for producing child pornography. 

“Hornback desired access to more child pornography, and his solution was to produce more on his own to trade in the online community,” said Acting United States Attorney John Horn.  “Victimizing the children he viewed online wasn’t enough, so he tragically brought yet another innocent victim to face the horrors of child porn on a personal level.  This office devotes significant resources to combat child pornography, and will always focus on those offenders who take the despicable step of producing it.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Our community and its children are much more safe with this lengthy prison sentence handed down to Mr. Hornback.  The FBI’s Violent Crimes Against Children Program will continue to provide significant investigative resources toward those individuals like Mr. Hornback who choose to prey on and exploit our nation’s children.”

According to Acting United States Attorney Horn, the charges and other information presented in court: On April 18, 2014, a federal search warrant was executed at Hornback’s residence in Kennesaw, Ga., based on information that he was actively trading child pornography.  During a search of the home, Hornback acknowledged he used a Google email address to send child pornography he produced to another suspect in the state of Washington.  He confessed he liked to trade the images with other people to get more child pornography for himself.  He also acknowledged that he produced sexually explicit images of a minor victim over Thanksgiving in 2013, keeping these pictures on a thumb drive he owned.  FBI agents were later able to identify the minor victim in the case through interviews and other investigative steps.

Hornback, 28, of Kennesaw, Ga., has been sentenced by United States District Court Judge Thomas W. Thrash to 20 years in prison to be followed by five years of supervised release.  Hornback was convicted on these charges on October 7, 2014, after he pleaded guilty.

This case was investigated by the Federal Bureau of Investigation.

Assistant United States Attorney Kurt R. Erskine 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 – Gerry Sanders has been sentenced to fourteen years and six months in prison for the attempted armed robbery of a Citizens Trust Bank in Decatur, Ga. in September 2012.

“This defendant’s use of a toy gun during an armed bank robbery led the security guard of the bank to fire his weapon several times, seriously harming not only the defendant, but also a bank teller,” said Acting United States Attorney John Horn.  “His violent acts led to both physical and emotional injuries to innocent people.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated:  “This case represents the dangerous consequences set in motion when a person goes into a bank and announces a robbery.  The defendant in this case demonstrated a complete disregard for others when he chose to rob the Citizens Trust Bank and, having a history for such reckless criminal behavior, he will now be held accountable with a lengthy prison sentence.”

“The reprehensible acts of this defendant put the lives of innocent people at risk and left physical and emotional scars that will last a lifetime, “said Interim DeKalb Police Chief James Conroy.  “I only hope the sentencing of this defendant helps the healing process for these innocent victims.”

According to Acting United States Attorney Horn, the charges and other information presented in court: On September 19, 2012, at approximately 9:10 a.m., Sanders burst through the front doors of the Citizens Trust Bank, located in Decatur, Ga., and pointed what appeared to be a semi-automatic handgun as he quickly approached a bank teller.  He then pushed aside a customer whom the teller was assisting and stated, “Give me all the hundreds you have,” while pointing the weapon at the teller.  Sanders also pushed a light colored pillow case through the porthole of the glass at the teller's window.  

As the teller was putting cash from her teller drawer into the pillow case, the bank security guard yelled at Sanders to “Freeze, drop the gun!”  Sanders turned, pointed his weapon at the bank security guard, and started moving toward him.  The guard fired several shots, striking Sanders in the leg.  A bullet also grazed the leg of a bank teller, resulting in a serious and long-lasting injury.  The bank security guard detained Sanders until DeKalb County Police Officers and FBI agents arrived.  After Sanders was arrested, the weapon he used was determined to be a toy gun.

Sanders, 42, of Atlanta, Ga., was sentenced to fourteen years, six months in prison, to be followed by five years of supervised release.  Sanders was convicted of these charges on October 1, 2014, after a jury trial.

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

Assistant United States Attorney Suzette A. Smikle prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the 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 - Marc E. Bercoon and William A. Goldstein have been indicted and arrested on federal charges that they manipulated the market for shares of Medcareers Group, Inc., a publicly traded company, and that they carried out a second investment fraud scheme using a new business corporation that they organized as the bait for investors. 

“These defendants are charged with manipulating the stock of a publicly traded company by carrying out pump and dump schemes,” said Acting United States Attorney John Horn.  “They are also charged with orchestrating an investment fraud scheme using a separate, private company, and laundering the proceeds of that fraud.  This office is committed to fighting all types of investment fraud – including securities fraud involving publicly traded companies.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Investment based fraud is not a victimless crime and the FBI will continue to dedicate significant resources toward identifying, investigating, and presenting for prosecution those individuals involved.”

According to Acting United States Attorney Horn, the charges, and other information presented in court: From July 2009 through September 2011, the defendants conspired with each other and others to manipulate the market for shares of Medcareers Group, Inc., a publicly traded company quoted on the over-the-counter bulletin board under the ticker symbol MCGI.  The conspiracy culminated in two “pump and dump” schemes carried out in March and May 2010.  To carry out the pump and dump schemes, Bercoon and Goldstein arranged for Medcareers Group, Inc. to issue a series of misleading press releases and SEC filings, at the same time as co-conspirators sent out mass emails touting the stock.  While the price of MCGI and the demand for the stock were both artificially high because of these efforts, the defendants orchestrated a massive sell-off of their stock, coordinating activity in multiple “nominee” accounts, which were titled in the names of other people and entities to hide the defendants' involvement.

The indictment further alleges that from May 2009 through June 2010, Bercoon and Goldstein also carried out a second investment fraud concerning a privately held company.  Specifically, Bercoon and Goldstein organized a private corporation, Findcom Acquisition, Inc., and then solicited investments from dozens of individuals.  Bercoon and Goldstein told investors, and induced brokers working for them tell investors, that their funds would be used to develop an Internet search engine named “Find.com.”  In fact, Bercoon and Goldstein used the bulk of the over $1.5 million raised from investors for unrelated purposes, such as subsidizing their other business ventures and making payments to themselves and their family members.  In fact, much of the $1.5 million invested in Find.com was simply withdrawn from the bank in cash shortly after being invested.

As part of the scheme, investors were provided with written offering materials.  In addition to stating that the investments would be used to develop the Find.com Internet search engine business, the written materials stated that investors were being offered the opportunity to buy stock at a uniform price of $1.00/share, and that no more than 12.5% of investments would go toward commissions.  Despite these representations in the written offering materials, Bercoon and Goldstein sold stock to some investors at heavily discounted prices, without informing other investors, and paid commissions of up to 35% to brokers on some investments.

These charges flow from a securities fraud investigation conducted by the Federal Bureau of Investigation, in which court-authorized wiretaps were used to intercept telephone conversations. 

Marc E. Bercoon, 54, of Dunwoody, Ga. and William A. Goldstein, 51, of Atlanta, Ga., were arrested and had initial appearances and bond hearings before Linda T. Walker, United States Magistrate Judge, on federal charges of conspiracy, mail fraud, wire fraud, securities fraud, and money laundering in connection with two fraudulent schemes.  Goldstein was also arraigned at the court hearing.  Bercoon and Goldstein were indicted by a federal grand jury on January 21, 2015.

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

This case is being investigated by the Federal Bureau of Investigation.  Valuable assistance has been provided by the staff of the U.S. Securities and Exchange Commission.

Assistant United States Attorneys Alana R. Black and Stephen H. McClain 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. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, 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/gan/.

ATLANTA - Odilon Martinez Rojas, a/k/a Chino, a/k/a Saul, and Arturo Rojas Coyotl, a/k/a Taco, a/k/a Jonathan have been sentenced for sex trafficking by force, fraud and coercion two young women from Guatemala and one young woman from Mexico. 

“Sex trafficking is a horrendous crime that robs the victims of their freedom and dignity, leaving them feeling isolated and powerless,” said Acting United States Attorney John Horn.  “This case hits new lows in depravity given the number of times these girls were victimized each day.  These defendants are being held accountable by U.S. laws which protect all victims of human trafficking.”

“Human trafficking is modern-day slavery-- period. No matter the label, the of use violence, intimidation, psychological coercion, deception, or fear to exploit fellow human beings is repugnant,” said Acting Deputy Attorney General Sally Quillian Yates.  “The long sentences handed down today are just one of the latest examples of the Justice Department's unshakable resolve to dismantle human trafficking networks and prosecute those who would commit these unspeakable crimes against some of the most vulnerable in our society."  Yates’ previous service as United States Attorney from 2010 to 2015 included making her district—the Northern District of Georgia—one of several key U.S. districts engaged in the Bilateral Human Trafficking Enforcement Initiative.

“These defendants targeted vulnerable individuals, preying on their hopes and dreams, dominating and deceiving them, and selling their bodies to strangers, all so the defendants could collect thousands of dollars in prostitution proceeds while the victims lived in fear, denied control over their own lives,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division.  “The Civil Rights Division is unwavering in its commitment to bringing human traffickers to justice and restoring the rights and dignity of the courageous survivors of all forms of modern-day slavery.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “This case represents one of the worst examples of human trafficking and why it is such a priority matter for not only law enforcement but for the many non-government agencies who help law enforcement in reporting human trafficking and providing assistance to those with nowhere else to turn.  The FBI urges anyone with information regarding human trafficking activities to contact authorities and help put an end to modern day slavery.”

“The defendants mercilessly manipulated, abused and exploited these women in a criminal scheme that is all too common in our communities,” said Ryan L. Spradlin, Acting Special Agent in Charge of ICE Homeland Security Investigations in Atlanta. “Sex trafficking and other forms of human trafficking are a scourge on our society that HSI is dedicated to ending.”

According to Acting United States Attorney Horn, the charges and other information presented in court:  In February 2006, Rojas Coyotl romanced a young woman in Mexico City, Mexico, telling her he loved her and wanted a life with her.  He told the young woman that she should travel with him to the United States to work in a legitimate job and make money for their future life together.  After smuggling the young woman across the border, he sent her to his uncle and co-defendant, Martinez Rojas.  Martinez Rojas informed the victim that she was here illegally, owed a large smuggling debt, and the only way to earn the money to repay her debt was through prostitution.  Rojas Coyotl and Martinez Rojas used violence and threats, fear and intimidation, trickery and deception, and emotional and psychological manipulation to compel the victim to prostitute in the Atlanta, Ga., area, and in Alabama, until she managed to escape in November 2007.

In March 2007, Rojas Coyotl and Martinez started romancing two young Guatemalan women and lured them to the United States in October 2007, under the same false pretenses.  The defendants then employed a nearly identical coercive scheme to compel the young women to prostitute in Georgia and Alabama before they escaped at separate times in early 2008.  The defendants had made the young women fearful of law enforcement and, thus, the victims did not immediately come forward.  Once investigators did find and speak to them, the details of the trafficking emerged: The defendants ran a high volume, low cost business compelling the young women to have sex, at times with upwards of 20 men a night in 15 minute increments, for payment of $30- $35.  The money earned by the victims was split between the defendants and others who drove the young women to the clients.  One of the young women became ill and suffered great pain due to the repeated commercial sex acts she had to endure.     

Since 2009, the Departments of Justice and Homeland Security have collaborated with Mexican law enforcement counterparts in a Bilateral Human Trafficking Enforcement Initiative, aimed at strengthening high-impact prosecutions under both U.S. and Mexican law, in order to more effectively dismantle human trafficking networks operating across the U.S.-Mexico border, bring human traffickers to justice, restore the rights and dignity of human trafficking victims and reunite victims with their children held under the trafficking networks’ control.  These efforts have resulted in successful prosecutions in both Mexico and the United States, including U.S. federal prosecutions of over 50 defendants in multiple cases in Georgia, New York, Florida, and Texas since 2009, in addition to numerous Mexican federal and state prosecutions of associated sex traffickers.

Arturo Rojas Coyotl, 28, of Tenancingo, Mexico, has been sentenced to 16 years in prison to be followed by five years of supervised release and a $600 special assessment.  Odilon Martinez Rojas, 43, of Tenancingo, Mexico, has been sentenced to 21 years, ten months in prison to be followed by five years of supervised release and a $600 special assessment.  Each defendant was ordered to pay restitution in amount of $190,000 which will be divided between three victims.  Rojas Coyotl was convicted on these charges on October 27, 2014, after he pleaded guilty.  Martinez Rojas was convicted on these charges on October 28, 2014, after he pleaded guilty.

A third co-defendant, Daniel Garcia-Tepal, pleaded guilty to related immigration offenses.  A fourth co-defendant, Severiano Martinez-Rojas, remains a fugitive.

This case was investigated by the Federal Bureau of Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.  If anyone has information pertaining to human trafficking, they are encouraged to call the national human trafficking hotline at 1-888-373-7888 or the local office of the FBI at 404-679-9000.

Assistant United States Attorney Susan Coppedge and Department of Justice Trial Attorney Benjamin J. Hawk of the Civil Rights Division’s Human Trafficking Prosecution Unit 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/.

NEWNAN, Ga. – Former Spalding County Fire Battalion Chief Dwayne Tyrone Coggins and former Firefighter Michael Owens have been sentenced for tipping off drug dealers to police activity in the Griffin, Ga., area.  Both were convicted in October 2014, after a jury trial.

“The police thought there was no safer place to gather than a fire station.  Instead, Coggins and Owens reported what they saw and heard to drug dealers operating in the area without ever considering the safety of the officers who trusted them with sensitive information,” said Acting United States Attorney John A. Horn.  “The Court’s sentences in this case demonstrate that there are real consequences that come from tipping off criminals to police activity.” 

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The sentencing of these two former Spalding County firefighters concludes an unfortunate but very necessary investigation and prosecution. Those who serve within the public safety community should be able to depend on each other, to include their own safety and security as they carry out their duties, and that was not the case with former Spalding County Fire Battallion Chief Coggins and former firefighter Owens.  The FBI will continue to provide significant resources toward identifying, investigating, and presenting for prosecution those individuals who betray their badges and their oaths of office.”

According to Acting United States Attorney Horn, the charges, and other information presented in court:  Coggins was employed by the Spalding County Ga., Fire Department since 1990 and, most recently, served as a Battalion Chief.  Owens had been employed by the Spalding County Ga., Fire Department as a firefighter for approximately four years.

Police regularly gathered at the Spalding County Fire Department before scheduled police activity such as serving arrest warrants.  In April and May 2014, Coggins and Owens warned drug dealers about law enforcement activity in the area before it occurred because they had been told by the police about the investigation or had seen officers gathering near the fire station.

Police were unaware that Coggins and Owens were tipping off drug traffickers until they heard the drug dealers talking about the tips on a wiretapped telephone.  During a series of wiretapped calls, the drug dealers discussed the specific information provided by the firefighters as well as how they could dispose of the drugs before the police arrived.  In one recorded call, Owens himself was intercepted asking whether the drug dealer had already cleaned out the drugs before police executed a search warrant.  Owens cautioned the drug dealer that he should immediately remove the drugs out of his stash house before it was too late.

Coggins, 47, of Griffin, Ga., was sentenced to four years in federal prison followed by one year of supervised release, and 100 hours of community service.  Owens, 37, also of Griffin, Ga., was sentenced to two years, six months in prison followed by one year of supervised release, and 100 hours of community service.  Both were sentenced before United States District Court Judge Timothy Batten. 

This case was investigated by the Federal Bureau of Investigation.

Assistant United States Attorney Kurt R. Erskine and Jeffrey W. Davis prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the 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 - Rahsaan Jackson Garth has been sentenced to federal prison for committing health-care fraud by faking the results of allergy tests that patients’ doctors had ordered.

“Garth endangered the health and safety of citizens, including children, by faking their allergy test results and misleading their doctors,” said United States Attorney Sally Quillian Yates.  “People trust doctors to make decisions that could permanently affect a patient’s health based on those results.  Garth put his own financial wealth ahead of people’s health.”    

“The defendant placed the pursuit of his own prosperity ahead of the well-being of patients, many of whom were children and the elderly” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta.  “Today’s sentence should serve as an example of the OIG’s commitment to pursue those who seek to exploit the trust and confidence of patients and doctors for their own gain.”

According to United States Attorney Yates, the charges and other information presented in court:  The defendant, Rahsaan Jackson Garth, a/k/a/ R. Jackson Garth, opened an allergy laboratory in 2011, named Polaris Allergy Labs, Inc., located in East Point, Ga.  Doctors sent their patients’ blood samples to Polaris Allergy Labs, Inc. to be tested for food and environmental allergies.  Beginning in approximately September 2012, and continuing through February 2014, Garth directed his allergy laboratory technician not to test some of the blood samples for allergens in order to save money by not using the allergen reagents necessary for testing.  Instead of testing the blood, Garth created fake allergy test result reports for the patients, and then had the fake test result reports sent back to the patients’ doctors.  

Sometimes Garth created results showing no allergic reaction, and other times he created results showing an allergic reaction, in order to avoid raising the suspicions of the doctors to whom he sent fake test result reports. The patients’ doctors were unaware that Garth was sending them fake allergy test results for their patients, putting each of those patients at risk. 

After creating a fake allergy test report for a patient, Garth caused a bill to be submitted to the patient’s health care benefit program, even though no service had in fact been provided.

During the investigation, law enforcement officials notified the doctors and patients who were potentially affected by Garth’s fraudulent testing activities.

Garth, 40, of Hampton, Ga., was sentenced by United States District Judge Timothy C. Batten, Sr., to three years and ten months in federal prison, three years of supervised release, ordered to pay $246,536.50 in restitution, and perform 100 hours of community service.  On July 22, 2014, Garth pleaded guilty to one count of healthcare fraud. 

This case is being investigated by Special Agents of the U.S. Department of Health and Human Services, Office of the Inspector General.

Assistant United States Attorney Mary L. Webb prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the 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 – Michael Yedor has been sentenced to ten years in prison for his role in orchestrating a scheme to defraud Northwest and Delta Air Lines of more than $36 million.

“The scope and magnitude of this fraudulent scheme is astounding,” said United States Attorney Sally Quillian Yates.  “The millions of dollars the defendants stole hurt the honest operations of an important company and its many customers, as well as other honest vendors who play by the rules.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The sentencing of Yedor represents the end of not only a complex scheme to defraud Northwest Airlines and Delta Airlines but also the resulting extensive federal investigation into those involved.  The FBI remains well positioned to investigate these types of complex white collar based crimes and will continue to remain responsive to the needs of the corporate sector when these cases are uncovered.”

According to United States Attorney Yates, the charges and other information presented in court: Yedor’s co-defendant Paul Anderson had been an employee of Northwest Airlines since 1979.  In 2008, Delta Air Lines purchased Northwest. The two airlines merged into a single company in December 2009, at which time Anderson became a managerial employee of Delta, working in its Minneapolis, Minn., office.  

From at least 1999 through 2013, Yedor and Anderson orchestrated a scheme to defraud Northwest and, later, Delta, by submitting numerous false invoices on behalf of a company, Airborne Voice and Data, purportedly owned by Yedor. The invoices sought payment from the airlines for goods provided and services supposedly rendered by Airborne Voice and Data. In fact, as both Anderson and Yedor knew, Yedor’s company had not provided any goods or services to the airlines.

In order to receive payment for the false invoices, Yedor sent the invoices to Anderson, who had the authority to approve them for payment. Once Anderson approved the invoices, falsely indicating that the goods or services had been received, the airlines issued payments to Airborne Voice and Data.  In exchange for approving each of the invoices, Anderson received a portion of the proceeds of the fraud. The defendants acknowledged that they received at least $36 million from the airlines during the scheme.

Michael Yedor, 62, of Los Angeles, Calif., was sentenced by United States District Judge Timothy Batten to ten years in prison, to be followed by three years of supervised release. He was also ordered to pay restitution of more than $36 million, in addition to a personal money judgment of more than $36 million, and forfeiture of his interest in an array of real properties and luxury goods, including a Beverly Hills mansion and a 71.9 foot yacht.  Yedor was indicted on June 10, 2014, and pleaded guilty on October 20, 2014, to conspiracy to commit mail fraud.

Co-defendant Paul Anderson pleaded guilty to conspiracy to commit mail fraud on September 15, 2014. He is scheduled to be sentenced on January 23, 2015.

Delta Air Lines cooperated fully with the investigation.

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

Assistant United States Attorneys Glenn D. Baker, Jamie L. Mickelson, and Jenny 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/.

GAINESVILLE, Ga. - William R. Beamon, Jr., a/k/a “Rusty” Beamon, has been convicted by a federal jury of carrying out a scheme to defraud Appalachian Community Bank, in Ellijay, Ga.

“Bank fraud is a critical problem throughout the United States, but it has hit Georgia especially hard,” said United States Attorney Sally Quillian Yates.  “Georgia leads the nation in bank failures since 2008, with 88 banks failing—including Appalachian Community Bank, the bank this defendant defrauded.  These failures have significantly affected the economy, making these cases important to safeguard the nation’s financial health.”

“The Federal Deposit Insurance Corporation (FDIC) Office of Inspector General is pleased to join our law enforcement colleagues in announcing the conviction of Mr. Beamon for his role in a fraudulent scheme that caused harm to Appalachian Community Bank,” said Fred W. Gibson, Principal Deputy Inspector General, Federal Deposit Insurance Corporation.  “One of our top priorities is to investigate and prosecute cases where trusted insiders abuse their positions to undermine the integrity of the financial services industry. We are committed to preventing and addressing such threats to the safety and soundness of FDIC-insured banks throughout the country.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Bank fraud comes in many forms but when it comes in the form of the bank’s own vice president, it becomes all the more intolerable.  Mr. Beamon, as a banking executive, should have protected his bank and its assets from fraud but instead he saw an opportunity to enrich his own bank account.  The federal sentencing handed down to Mr. Beamon will be not only the closing note to one man’s banking career but also to the bank that he caused to fail.”

“Beamon was convicted after a jury found him guilty of using his position at TARP-applicant Appalachian Community Bank to defraud the bank in order to line his own pockets,” said Christy Romero, Special Inspector General for TARP (SIGTARP).  “Beamon’s greed and self-dealing at the expense of the bank left holes in the bank’s books that the bank tried to fill when it applied for TARP funds.  SIGTARP and our law enforcement partners will ensure that justice is served for perpetrators of fraud related to TARP.”

According to United States Attorney Yates, 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 the Appalachian’s foreclosure liquidation department.  In 2009, he represented to a real estate agent that he personally owned a house in Cumming, Ga.  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. 

William R. Beamon, Jr., a/k/a “Rusty” Beamon, 54, of Atlanta, Ga., was convicted on five counts of bank fraud.  Sentencing has not yet been scheduled.

This case is being 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 and Douglas W. Gilfillan 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 Gainesville Division is http://www.justice.gov/usao/gan/.

ATLANTA – Kendrick Watkins and Charles Jackson have been sentenced to 18 years, 4 months, and 19 years in federal prison for their respective roles in the robbery and near-fatal shooting of a postal truck driver on December 20, 2013, during a routine pick-up at the Conley, Ga. post office.

“These defendants shot the victim, tied up his legs and threw away his cell phone so that he could not run or call for help,” said United States Attorney Sally Quillian Yates.  “Watkins and Jackson’s callous disregard for human life nearly cost the victim his for simply doing his job.  The lengthy sentences imposed are an appropriate response for this heinous crime.”

“Protecting the employees of the Postal Service is a top priority of the U.S. Postal Inspection Service. When someone attempts to take the life of one of our employees, we stop at nothing to identify those responsible,” stated Inspector in Charge Tom Noyes.  “We extend appreciation to the DeKalb Police Department for their assistance and would like to thank the U.S. Attorney's Office for their continued support in the prosecution of those who assault postal employees.”   

According to United States Attorney Yates, the charges, and other information presented in court:  Kendrick Watkins and Charles Jackson worked together with co-defendant Latonya Evans, a former postal employee in Jackson, Ga., to develop a scheme to rob a postal truck just before Christmas in 2013, when postal volume was at its highest.  Evans provided Watkins and Jackson with non-public information that enabled them to plan and carry out the robbery. 

On December 20, 2013, at the post office in Conley, Ga., Watkins and Jackson approached the postal truck they had targeted and demanded keys from the truck’s driver as Jackson brandished a loaded pistol.  When the driver did not immediately comply with these demands, Jackson shot the driver through the torso, lacerating the victim’s internal organs and nearly taking his life.  The robbers then bound the victim’s feet with zip-ties and took his cell phone, leaving him for dead.  Watkins and Jackson drove away with the stolen truck and all its contents.  The victim struggled to reach the nearest road where he eventually flagged down a passerby for help, after waiting almost 20 minutes.  Watkins met with Evans later that same evening to discuss the robbery and how to divide up the proceeds. 

Kendrick Watkins, 40, of Rex, Ga., was sentenced by U.S. District Judge Thomas W. Thrash, Jr., to 18 years, four months in prison, to be followed by five years of supervised release.  He was also ordered to pay restitution in the amount of $14,888.  Watkins was convicted on these charges on August 13, 2014, after he pleaded guilty to armed postal robbery and discharge of a firearm during a crime of violence, pursuant to a negotiated plea agreement.

Charles Jackson, 56, of Griffin, Ga., was sentenced by Judge Thomas W. Thrash, Jr., to 19 years in prison, to be followed by five years of supervised release.  He also has been ordered to pay restitution in the amount of $14,888.  Jackson was convicted on these charges on August 5, 2014, after he pleaded guilty to armed postal robbery and discharge of a firearm during a crime of violence, pursuant to a negotiated plea agreement.

Latonya Evans, 44, of Jackson, Ga., was sentenced by Judge Thrash on November 21, 2014, to 15 years, eight months in prison, to be followed by three years of supervised release.  Evans was also ordered to pay restitution in the amount of $14,888.  Evans was convicted on September 9, 2014, after pleading guilty to conspiring to interfere with commerce by robbery, pursuant to a negotiated plea agreement. 

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

Assistant United States Attorneys Mary Kruger, John Ghose, and Angela Garland 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 - Three drug traffickers have been sentenced to federal prison for conspiracy to possess with the intent to distribute methamphetamine stemming from their roles in the delivery of liquid methamphetamine to residences in Austell, Ga., and Mableton, Ga.

“Over a period of many months, these defendants shipped liquid methamphetamine to Atlanta from the Mexican border and then distributed it throughout the Atlanta metropolitan area,” said United States Attorney Sally Quillian Yates.  “Given that law enforcement seized record amounts of methamphetamine at the Mexican border in 2014, this case reflects both a disturbing trend in trafficking methamphetamine produced in Mexico and our efforts to disrupt this trend.”

“Methamphetamine continues to ravage many communities in our nation,” said Harry S. Sommers, Special Agent in Charge of the DEA Atlanta Field Division. “Because of the positive results yielded in this case, other methamphetamine traffickers in the Atlanta metropolitan and surrounding areas are being put on notice that DEA and its law enforcement partners will not tolerate their continued efforts to manufacture and distribute this insidious drug.”

“The attack on money laundering is an essential front in the war on narcotics,” stated Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation.  “We are proud to have contributed our financial expertise in order to dismantle the drug-trafficking operation that has been targeting the metro Atlanta citizens.”

According to United States Attorney Yates, the charges and other information presented in court: In October 2012, DEA and IRS agents were investigating Gabriel Jimenez-Antunez, a known local distributor for a Mexican drug trafficking cartel, who was coordinating the delivery of shipments of liquid methamphetamine to the metro-Atlanta, Ga., area and laundering the proceeds of that drug trafficking activity to Mexico.  In early spring 2013, agents learned that Jimenez recruited his brother-in-law, Pablo Saucedo Aparicio, and associate Martin Ascencio, to carry out the day-to-day activities of the organization, including receiving methamphetamine shipments from couriers at residences in Mableton, Ga., and depositing drug proceeds at local banks.   

In the early morning hours of May 12, 2013, agents tracked the delivery of liquid methamphetamine to a residence in Austell, Ga.  Agents determined that the liquid methamphetamine was stored inside the gas tank of a Ford F-350 vehicle.  That evening agents observed Jimenez, assisted by Saucedo, arrive at the residence with thermoses, which were to be used to transfer and store the liquid methamphetamine before it was further distributed.  Ascencio was in the process of removing the gas tank containing approximately 75 liters of diesel fuel and liquid methamphetamine when agents arrested the defendants and seized the drugs.  Agents executed search warrants at this and related residences, recovering another ten pounds of crystal methamphetamine and other evidence.

Three defendants, who pleaded guilty in 2014, have been sentenced by U.S. District Court Judge Orinda D. Evans:

• Gabriel Jimenez-Antunez, a.k.a. “Negrito,” 39, of Mexico, was sentenced to 25 years in prison, to be followed by five years of supervised release.

• Pablo Saucedo-Aparicio, 38, of Mexico, was sentenced to 16 years and eight months in prison, to be followed by five years of supervised release.

• Martin Ascencio, 49, of Mableton, Ga., was sentenced to five years in prison, to be followed by five years of supervised release.

This case was investigated by the Drug Enforcement Administration and the Internal Revenue Service Criminal Investigation, with valuable assistance provided by agents at ICE-Homeland Security Investigations.

Assistant United States Attorney Laurel R. Boatright prosecuted the case.

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

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the 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 - Rupert Morgan has been sentenced to two years, and three months in federal prison for theft of VA and Social Security funds paid to a beneficiary who died in 1997. 

“Morgan stole more than $400,000 to which he was not entitled,” said United States Attorney Sally Quillian Yates.  “This case is particularly troubling because he had a successful and lucrative career in the legal profession during the entire time period that he was committing this fraud on the United States government.”

Special Agent in Charge Monty Stokes, U.S. Department of Veterans Affairs Office of Inspector General (VA OIG) – Southeast Field Office, said “this sentencing is a testament to the excellent interagency cooperation with VA OIG, Social Security Administration, and the Department of Justice.  We are committed to aggressively pursuing those who commit fraud against our nation’s veterans, the Department of Veterans Affairs and its programs.”

“The Social Security Office of the Inspector General is committed to pursuing those who violate the public’s trust by failing to report Social Security beneficiary deaths and continuing to receive the deceased’s benefits, sometimes for many years. We are working closely with Social Security and the Department of Justice to identify and prosecute these people and recover stolen funds, as one of our many efforts to protect the integrity of Social Security’s programs for those who rely on them now and into the future,” said Thomas Caul, Special Agent-in-Charge of the SSA OIG’s Atlanta Field Division.

According to United States Attorney Yates, the charges and other information presented in court: In December 1996, Morgan was a paralegal who has been employed by various law firms in the Atlanta area, and R.V., a VA disability and Social Security Administration (SSA) retirement beneficiary, was a patient at a personal care home owned and operated by Morgan’s now ex-wife.  Morgan and R.V. opened a joint SunTrust bank account into which R.V.’s benefits were deposited.  R.V. died in November 1997.  After R.V.’s death, the defendant kept the joint bank account open while VA and SSA benefits continued to be deposited into the account.  

In 2007, ten years after R.V.’s death, the defendant opened a second joint bank account in both his and R.V.’s names.  He then frequently transferred money from the original joint account to the second joint account. Morgan often let large sums of money accumulate in the accounts before he spent it.  When the SSA discovered the fraud, it was able to reclaim over $101,000 that was sitting in the defendant’s and R.V.’s joint bank account.   In total, the defendant stole $258,045.00 from the VA and $142,372.00 from the SSA. 

Morgan, 53, of Atlanta, Ga., has been sentenced to two years, three months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $299,164.75.  Morgan was convicted of these charges on September 26, 2014, after he pleaded guilty.

This case was investigated by the Social Security Administration, Office of the Inspector General and Department of Veterans Affairs, Office of Inspector General.

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

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

January 1, 2015

GAINESVILLE, Ga. - David M. Treadwell, a Hall County Deputy Sheriff, has been arraigned on federal charges of accepting bribes and conspiring to possess with intent to distribute marijuana.  Treadwell was indicted by a federal grand jury on January 28, 2015.

“When a police officer becomes the exception and betrays his badge to protect criminals and promote crime, he undermines the dedication and sacrifices of his fellow officers that allow our citizens to trust and respect law enforcement,” said Acting United States Attorney John A. Horn. “This case unfortunately follows too closely on the heels of other instances of police corruption in this district, but we are committed to aggressively investigating and prosecuting these cases to ensure that people have faith and confidence in our police.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Allegations of public corruption at all levels is a priority concern to us at the FBI, but allegations involving a law enforcement officer offer additional challenges and concerns. The FBI, upon receiving such allegations in this case, worked aggressively with its law enforcement partners to quickly investigate those allegations and present that investigation to federal prosecutors.”  

 “When you have a seasoned deputy sheriff who makes the conscious choice to violate his oath of office and seek illegal financial gain it must be dealt with expeditiously,” said Hall County Sheriff Gerald Couch.  “I will not tolerate this kind of criminal action and I am thankful for the duty-bound officers who brought these heinous activities to the forefront.”  

According to Acting United States Attorney Horn, the charges, and other information presented in court: Treadwell was employed as a deputy sheriff with the Hall County Sheriff's Office.  On five occasions in late 2014, Treadwell accepted $200 or $300 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.  

David M. Treadwell, 33, of Gainesville, Ga., was arraigned before United States Magistrate Judge J. Clay Fuller.  Members of the public are reminded that the indictment only contains charges.  The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.

This case is being investigated by the Federal Bureau of Investigation with assistance from the North Georgia Major Offenders Task Force that includes members of the Hall County Sheriff’s Office which assisted in the investigation.

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

ATLANTA - Eugene Harvey, a baggage handler at Hartsfield-Jackson International Airport, has been arrested on a federal complaint charging him with trafficking in firearms and entering the secure areas of the airport in violation of security requirements.

“The complaint alleges that Harvey repeatedly evaded airport security with bags of firearms, some of which were loaded,” said United States Attorney Sally Quillian Yates.  “He then passed the guns off to an accomplice who transported them as carry-on luggage to New York, where they were illegally sold.” 

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI has dedicated significant investigative resources at our nation’s airports to not only address those special jurisdiction cases involving air travel itself, but also to provide assistance to those agencies responsible for the security of those airports and all that travel through them.  This case represents a serious security breach at Atlanta's Hartsfield Jackson airport and the FBI's Atlanta Field Office continues to work with its various law enforcement partners in addressing this breach and preventing future ones.”

According to United States Attorney Yates, the charges, and other information presented in court:  On at least five occasions in 2014, Harvey, a baggage handler for Delta Air Lines, worked with another former Delta employee to smuggle firearms through airport-controlled security checkpoints for Delta employees, and thus he was not required to go through the screening performed for passengers by TSA.  Once through the airport-controlled security checkpoints, the firearms were carried in carry-on baggage into the passenger cabins of aircraft.  Each time, Harvey’s accomplice flew to New York with the guns, where they were illegally sold. 

The federal investigation into Harvey began when the New York Police Department and the Kings County District Attorney’s Office notified the FBI that a then-unidentified individual was helping a gun-trafficker move guns illegally from Georgia into New York.  By that time, the New York Police Department had identified and arrested the New York seller of the illegal firearms, and was investigating how the guns were being smuggled into New York.  Since January 2014, Harvey’s accomplice has trafficked approximately 129 firearms between Georgia and New York. The last shipment on December 10, 2014, contained 18 firearms, 7 of which were loaded.

Upon learning of the information, Delta Air Lines worked closely with law enforcement to identify Harvey and immediately terminated him.

Eugene Harvey, 31, of College Park, Ga., made his initial appearance Monday before Linda T. Walker, United States Magistrate Judge.  Harvey was arrested Saturday on federal charges of trafficking in firearms and entering the secure areas of the airport in violation of security requirements.  He was released on bond.

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

This case is being investigated by the Federal Bureau of Investigation, the U.S. Federal Air Marshal Service, and the Transportation Security Administration.

Assistant United States Attorney L. Skye 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 - Shinkweon Park has been sentenced for conspiring to commit healthcare fraud by submitting false claims for doctor visits, acupuncture, and physical therapy to Medicare and Blue Cross Blue Shield.

“Park cheated our healthcare system by filing over $2 million in fraudulent claims, diverting precious healthcare resources,” said United States Attorney Sally Quillian Yates.  “He is now being held accountable for his crimes.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “This case not only provides an example of the problems facing the health care industry by those who engage in such extensive schemes to defraud that industry, but also the government’s efforts to eradicate the fraud that is putting such a strain on this industry.  The FBI continues to work with its corporate healthcare partners such as Blue Cross Blue Shield, as well as its law enforcement partners, including the U.S. Health and Human Services Office of Inspector General, in stemming the tide on such damaging healthcare fraud cases that divert programs and services away from those who truly need them.”

“Shin Park used his position to take advantage of the Medicare program by submitting fraudulent claims for services he never rendered for hundreds of Medicare beneficiaries who placed their trust in him to do the right thing,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services, Office of Inspector General, Atlanta Regional Office.  “Today’s sentence demonstrates that HHS OIG is committed to combatting fraud and protecting America’s most vulnerable citizens, and shows how quickly justice can be achieved when we work closely with our fellow federal law enforcement partners and civilian counterparts.” 

          According to United States Attorney Yates, the charges and other information presented in court:  From November 2009 through May 2012, Park owned and operated the LOMA Clinic in Norcross, Ga.  Beginning in April 2010, the clinic began submitting false claims to Medicare in three ways.  First, Park, a licensed acupuncturist, submitted claims for acupuncture treatments, which were not reimbursable by Medicare under any circumstances.  Second, LOMA billed for massage and physical therapy services that were not performed by licensed physical therapists or physical therapy assistants, as required by Medicare.  Third, LOMA billed Medicare for office visits purportedly performed by a medical doctor.  In fact, the doctor hired by LOMA to serve as medical director of the clinic never examined or treated patients.  However, all of LOMA’s claims were submitted using his unique provider code.  Similar false claims were made to Blue Cross Blue Shield.

          Over two years, LOMA submitted over $1.6 million in false claims to Medicare, along with an additional $475,000 in false BCBS claims.  Based upon the claims, Medicare paid LOMA over $969,000, and LOMA received over $210,000 from BCBS.

          Park, 43, of Suwanee, Ga., was sentenced by United States District Judge Thomas W. Thrash, Jr., to two years, nine months in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $1,190,166.31.  Park was convicted on these charges on January 6, 2014, after he pleaded guilty to one count of conspiracy to commit healthcare fraud.

          This case was investigated by the Federal Bureau of Investigation and the United States Department of Health and Human Services, Office of the Inspector General.

          Assistant United States Attorney Shanya J. Dingle 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 - Robert Lee Hatcher III, Willie Dewayne Lynch, Andrew Oliver, and Arthur James Freeman have been convicted and sentenced for defrauding and conspiring to defraud The Home Depot, Inc. 

“These defendants executed a long-term, sophisticated scam to defraud The Home Depot out of more than $600,000,” said United States Attorney Sally Quillian Yates.  “Security measures at The Home Depot helped uncover and stop this scheme before they could steal more.  This case should remind those who believe they have concocted the perfect scam that they will be caught.”   

“The U.S. Secret Service and our law enforcement partners work tirelessly to protect our nation’s electronic financial payment systems,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.  “This sentence should serve as a reminder that criminals will not get away with using Point of Sale terminals to fund their criminal activity.”

According to United States Attorney Yates, the charges and other information presented in court: Beginning in at least January 2011, Hatcher, Lynch, and Oliver entered Home Depot stores in Georgia, Alabama, Florida, Tennessee, North Carolina, South Carolina, Kentucky, Louisiana, Mississippi, and Texas, and selected merchandise for purchase.  Prior to purchasing the merchandise, they covered the UPC labels on high-priced items with UPC labels they removed from lower-priced items – a practice commonly called “ticket-switching.” The defendants then took the merchandise to a sales terminal, where they purchased it for the lower price. 

After fraudulently purchasing the merchandise, Hatcher, Lynch, and Oliver removed the lower-priced UPC label, revealing the original, higher-priced UPC label.  Next, the defendants returned the fraudulently purchased merchandise to Home Depot stores and obtained refund cards in the amounts of the actual (and higher) price of the merchandise.  Hatcher, Lynch, and Oliver then sold the refund cards to Freeman in exchange for cash at 60% of the actual value contained on the refund cards. Thereafter, Freeman used the fraudulently obtained refund cards to buy merchandise at Home Depot stores, which he used to stock two retail stores that he owned and operated in Atlanta, Ga., known as “Bargain Wholesale.”

•             On October 28, 2014, Robert Lee Hatcher III, 32, of Atlanta, Ga., was sentenced to five years in prison, followed by three years of supervised release, and was ordered to pay $647,391.02 in restitution.
•             On October 28, 2014, Willie Dewayne Lynch, 30, of Atlanta, Ga., was sentenced to three years, nine months in prison, followed by three years of supervised release, and was ordered to pay $647,391.02 in restitution.
•             On October 6, 2014, Andrew Oliver, 62, of Stone Mountain, Ga., was sentenced to three years, four months in prison, followed by three years of supervised release, and was ordered to pay $86,858.46 in restitution.
•             Finally, on December 18, 2014, Arthur James Freeman, 54, of Atlanta, Ga., was sentenced to six months in prison, eight months of home confinement, followed by three months of supervised release, and was ordered to pay $113,527.50 in restitution.

This case was investigated by the United States Secret Service, the Governor’s Office of Consumer Protection, the Gwinnett County Police Department, the Woodstock Police Department, and the Atlanta Police Department, with assistance from Corporate Investigators with The Home Depot, Inc.

Assistant United States Attorneys Jeffrey W. Davis and Teresa D. Hoyt 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 is http://www.justice.gov/usao/gan/.

ATLANTA, GA – Eight drug traffickers have been sentenced to federal prison for conspiracy to possess with the intent to distribute methamphetamine. 

“These defendants thought that their drug trafficking operations would go unnoticed in Clayton County neighborhoods,” said United States Attorney Sally Quillian Yates.  “They were wrong.  Due to the outstanding efforts of DEA agents and their local law enforcement partners, these traffickers are off our streets and headed to federal prison.” 

“The success of this investigation is a tribute to the strong local, state, and federal partnerships that demonstrate our combined impact on targeting and dismantling those methamphetamine trafficking organizations that peddle poison to our neighborhoods,” said John S. Comer, Acting Special Agent in Charge of the U.S. Drug Enforcement Administration’s Atlanta Field Division.

According to United States Attorney Yates, the charges and other information presented in court:  In or about 2012, Candido Ortuno Alvear, who was on parole in Texas for a cocaine trafficking offense, moved to the Atlanta, Ga. area to set up a methamphetamine manufacturing and distribution organization.  Alvear recruited his then 19-year-old son, Victor Ortuno-Penaloza, brother-in-law Vicente Arana Galvan, cousin Tomas Sanchez Juarez, and associate Pablo Maldonado Penalosa to carry out the day-to-day operations of the organization.  The organization rented several “stash houses” in Clayton County, Ga., which were used to manufacture, store, package, and distribute large quantities of methamphetamine, including homes on Needle Drive in Forest Park, Ga., and on Maple Avenue in Morrow, Ga.  Alonso Alfonso Rivera, who resided in a home on Brian Court in Forest Park, served as a methamphetamine distributor for the organization. 

On January 18, 2013, agents observed Maldonado Penalosa meet with Robert Dale Penland at the Maple Avenue residence in Morrow, to provide Penland with a quantity of methamphetamine.  After Penland departed the residence, law enforcement conducted a traffic stop of Penland on Interstate 75 in Henry County, Ga., and located approximately 10 pounds of “ice” methamphetamine under the back passenger seat.  Penland was traveling in the vehicle with his wife and ten-month-old grandson, who had in fact accompanied Penland into the garage of the Maple Avenue residence earlier that day. 

Several days later, on January 22, 2013, Maldonado provided Octavio Cruz Albar with a quantity of methamphetamine outside of the Maple Avenue residence.   Law enforcement conducted a traffic stop of Albar, who was traveling in a taxi, and located approximately two pounds of “ice” methamphetamine inside a shoebox where Albar had been seated.  The investigation revealed that Juarez had manufactured the seized “ice” methamphetamine in the Needle Drive residence in Forest Park, in coordination with Alvear, Ortuno-Penaloza, and Galvan.

Later that evening, agents executed federal search warrants at the Maple Avenue and Needle Drive residences, and located methamphetamine and methamphetamine processing materials inside both houses.  Agents also executed a search warrant at Rivera’s Brian Court residence, in Forest Park arrested Rivera, and located a 9mm Beretta 92FS handgun under a couch cushion.  Agents arrested Juarez and Ortuno-Penaloza in a nearby motel and Galvan, Alvear, and Maldonado in a residence on Kennesaw Drive in Forest Park. 

• Candido Ortuno Alvear, 40, of Forest Park, Ga., was sentenced to 21 years and ten months in prison, to be followed by five years of supervised release. 

• Victor Ortuno-Penaloza, 21, of Forest Park, Ga., was sentenced to nine years and eight months in prison, to be followed by five years of supervised release.    

• Vicente Arana Galvan, 44, of Morrow, Ga., was sentenced to ten years and eight months in prison, to be followed by five years of supervised release.    

• Tomas Sanchez Juarez, 27, of Forest Park, Ga., was sentenced to twelve years and seven months in prison, to be followed by five years of supervised release.   

• Pablo Maldonado Penalosa, 30, of Forest Park, Ga., was sentenced to nine years in prison to be followed by three years of supervised release.  

• Octavio Cruz Albar, 29, of Atlanta, Ga., was sentenced to six years and six months in prison to be followed by three years of supervised release.   

• Robert Dale Penland, 55, of Asheville, NC., was sentenced to eight years and five months in prison, to be followed by five years of supervised release.

• Alonso Alfonso Rivera, 31, of Forest Park, Ga., was sentenced to ten years in prison, to be followed by five years of supervised release.  In addition to the methamphetamine conspiracy charge, Rivera was sentenced on the charge of possession of a firearm by an alien illegally and unlawfully in the United States.

All defendants were convicted of the above charges upon their pleas of guilty last year.  They were sentenced by United States District Judge Amy Totenberg.

This case was investigated by DEA Special Agents and Task Force Officers with valuable assistance provided by the Bureau of Alcohol Tobacco and Firearms, Internal Revenue Service, Federal Bureau of Investigation, Georgia Bureau of Investigation, MCS (Marietta Cobb Smyrna) Narcotics Unit, Flint Circuit Drug Task Force, Georgia State Patrol, Clayton County Sheriff’s Office, Henry County Sheriff’s Office, and Henry County Police Department.

Assistant United States Attorney Michael Herskowitz 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 Information 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 www.justice.gov/usao/gan.

ATLANTA – Gregg A. Kaminsky has pleaded guilty to one count of wilfully failing to file a Foreign Bank Account Report with the U.S. Department of Treasury in connection with his concealment of income and assets in accounts in Switzerland, Hong Kong, and Thailand over several years, as well as his failure to report certain income earned in the virtual world, “Second Life.”   

“This prosecution is a yet another reminder that the days of Americans hiding income and assets overseas are over,” said United States Attorney Sally Quillian Yates.  “It also sends a strong message that U.S. taxpayers are required to report all of their taxable income to the IRS, whether that income is earned in the real world or in a virtual world.”

“U.S. citizens who seek to avoid their tax obligations by hiding income in undeclared bank accounts abroad should by now be fully on notice that they will be held accountable for their actions, both civilly and criminally,” stated IRS Criminal Investigation Special Agent in Charge, Veronica F. Hyman-Pillot. “Americans who file accurate, honest and timely returns can be assured that the government will hold accountable those who don’t.”  

According to United States Attorney Yates, the charges and other information presented in court:  Citizens and residents of the United States who have a financial interest in, or signature authority over, a financial account in a foreign country with an aggregate value of more than $10,000 at any time during a calendar year are required to file with the U.S. Department of Treasury a “Report of Foreign Bank and Financial Accounts,” commonly referred to as the “FBAR.”  The FBAR for the applicable year must be filed by June 30 of the following year.

Kaminsky is an Internet entrepreneur who serves as the Chief Executive Officer of Circlenet LLC, based in Atlanta, Ga.  From 2000 through 2008, Kaminsky owned and controlled a foreign bank account with Union Bank of Switzerland AG (“UBS”), one of the biggest banks in Switzerland and largest wealth managers in the world.  By 2006, Kaminsky’s UBS account held approximately $1.1 million.  From time to time between 2002 and 2009, Kaminsky caused funds to be wire-transferred from his UBS account in Switzerland to other foreign bank accounts controlled by him in Thailand and Hong Kong.  Also during that time, Kaminsky caused his income from at least two different U.S. companies to be direct-deposited into his UBS account in Switzerland.

Yet, over this period, Kaminsky did not disclose his UBS account or other foreign financial accounts to the U. S. Treasury Department as required, and thereby concealed several hundred thousand dollars in taxable income, interest, and dividends from the U.S. Internal Revenue Service (IRS).

In addition, in 2007 and 2008, Kaminsky omitted his UBS account and associated income from Free Applications for Federal Student Aid (FASFA) that he electronically filed with the U.S. Department of Education in order to qualify for need-based federal financial aid assistance to fund his tuition for an Executive MBA program at Emory University.  At the time of the FASFA applications, Kaminsky controlled over a half million dollars in his UBS account, which would have made him ineligible for federal student loan assistance.

On June 30, 2008, the U.S. Department of Justice sought court approval to compel UBS to disclose the identities of U.S. accountholders who may be using UBS accounts to hide assets overseas and thereby evade U.S. taxes.  The request and the order authorizing it were widely reported by the media throughout the United States, which coverage continued throughout 2008 and 2009 as the U.S., UBS, and Switzerland negotiated a resolution and UBS began disclosing U.S. account holders to the IRS.

Following this news, Kaminsky closed his UBS account and transferred the balance of his UBS account to an account that he controlled at HSBC Bank in Hong Kong.  Further, in spring 2010, Kaminsky filed FBARs for his Swiss and Hong Kong accounts for the very first time, also filing amended individual income tax returns for 2007 and 2008 that disclosed the previously unreported income in his UBS account.  However, in his amended 2007 and 2008 returns, and in his subsequently filed returns for 2009 through 2011, Kaminsky still failed to report nearly $150,000 in taxable income earned from his business activities in the virtual world, “Second Life.” 

Participants in Second Life, referred to as “residents,” can engage in a wide variety of business activities, including buying, renting, and sub-leasing virtual land and buying and selling other virtual goods, services, and experiences for their “avatars.”  Transactions are conducted using a virtual currency, “Linden Dollars.”  Linden Dollars can be bought and traded on the “Linden Exchange,” and are redeemable for cash. 

Including his virtual world income, Kaminsky failed to report over $400,000 in income to the IRS between 2000 and 2012, resulting in a loss to the IRS of over $100,000.

Kaminsky, 46, of Atlanta, Ga., faces a maximum sentence of five years in prison and a criminal fine of up to $250,000.  In addition, as part of his plea agreement with the United States, Kaminsky has agreed to pay a civil penalty to the IRS in the amount of $250,635.20, which is equivalent to fifty percent of the value of the balance in Kaminsky’s HSBC account in Hong Kong as of June 30, 2009. 

Sentencing is scheduled for March 4, 2015 at 10:00 a.m. before Senior United States District Judge Willis B. Hunt.

This case is being investigated by Special Agents of the Criminal Investigation division of the U.S. Internal Revenue Service.  Valuable assistance has also been provided by Special Agents of the U.S. Department of Education, Office of Inspector General.

Assistant United States Attorney David M. Chaiken 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 - Janet Baquet, a former Sheriff's deputy in Orleans Parish, La., has pleaded guilty to charges that the she stole nearly $90,000 in Social Security benefits from the federal government. 

“This defendant’s repeated acts of criminal conduct lasted for more than eight years and cost the United States Treasury nearly $90,000,” said United States Attorney Sally Quillian Yates.  “She deliberately and methodically broke the law that she swore to uphold as a deputy sheriff.”

“The Social Security Administration, Office of the Inspector is grateful for the support and diligent efforts by the US Attorney’s Office in prosecuting those that seek to  defraud the Social Security Administration’s benefit programs,” said Thomas Caul, Special Agent in Charge, of the Office of the Inspector General for the Social Security Administration.      

According to United States Attorney Yates, the charges and other information presented in court: Baquet’s father, who was a Social Security retirement benefits recipient, died in May 2006, and her mother died one month later.  After her parents death, her father’s Social Security benefits continued to be deposited in a bank account that Baquet’s parents shared.  For more than eight years, Baquet stole her deceased father’s benefits by writing checks to herself out of her parents’ joint account, forging her deceased mother’s signature on the checks.  In total, she received $89,379.13 of government benefits to which she was not entitled. 

Sentencing for Baquet, 56, of New Orleans, La., is scheduled for March, 4, 2015.

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

Special Assistant United States Attorney Diane C. Schulman 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 - Nicholas Mazza, who worked as a girls softball coach in Cobb County, Ga., has been arraigned on federal charges of distributing and possessing child pornography.  Mazza was indicted by a federal grand jury on December 9, 2014.

“The victimization of children is one of the most heinous and despicable crimes imaginable,” said United States Attorney Sally Quillian Yates.  “Distributing images of the sexual abuse of children on the Internet only compounds the harm done to the children.  We will continue to vigorously pursue and prosecute those persons who collect and trade these images.”

According to United States Attorney Yates, the charges, and other information presented in court:  In late October 2014, special agents of the Department of Homeland Security were monitoring a peer-to-peer program to identify individuals who were making child pornography available for others to download onto their computers.  A peer-to-peer program allows users to share digital files directly with other persons who use the same program.  The agents found that the defendant had child pornography videos available on his computer.  After determining that this activity was occurring from his house in Powder Springs, Ga., they obtained a federal search warrant and executed it at the defendant's home on November 6, 2014.  They found a computer and hard drive that contained thousands of images and videos of young girls being sexually abused. 

Mazza, 66, of Powder Springs, Ga., was arrested on November 7, 2014.  Prior to his arrest, he worked as a fast-pitch softball coach at “GeorgiaScout” in Cobb County for girls between the ages of 8 and 17 years.  He was arraigned before United States Magistrate Judge Linda T. Walker. 

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

This case is being investigated by the 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 Atlanta Division is http://www.justice.gov/usao/gan/.

ATLANTA - Kenneth Campbell, a/k/a “Scrilla,” Corey Thomas, a/k/a “Lil Corey,” Adrian Bridges, Juarez Johnson, Justin Cody, a/k/a “Decatur Slim,” and Aeshia Wilmore have been sentenced for their roles in a $1 million fraudulent income tax refund scheme.

“Identity theft unfortunately has become the crime of choice given the availability or stolen or lost personal information,” said United States Attorney Sally Quillian Yates.  “With each offense, an innocent person’s financial livelihood is put at risk.  We will continue to investigate and prosecute these crimes and will seek sentences that deter and punish this conduct.”

“Identity thieves are becoming more devious, creative, and conniving,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS-Criminal Investigation. "These defendants perpetuated an elaborate scheme driven by insatiable greed and a blatant disregard for the tremendous damage inflicted on innocent victims. These criminals must be and will continue to be pursued in order to obtain justice for the victims as well as justice for our nation.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The sentencing of these individuals concludes an extensive criminal investigation that now holds those involved with victimizing so many accountable for their actions.  The FBI will continue to work with its law enforcement partners in aggressively addressing these fraudulent tax refund schemes that not only victimize the U.S. Government but also those individuals whose identities have been stolen.”

According to Paul Bowman, Area Special Agent in Charge of the United States Postal Service, Office of Inspector General, “Adrian Bridges reflects just a very small percentage of employees who failed to uphold the trust and integrity placed in them.  The U.S. Postal Service, Office of Inspector General takes these cases very serious and investigates them to the fullest extent of the law.  The general public should be reminded that the majority of postal employees remain committed to exhibiting the highest moral character and trust that our customers expect and deserve.”

According to United States Attorney Yates, the charges and other information presented in court: From as early as July 2012 to October 2013, the defendants participated in a scheme to defraud the United States Department of the Treasury and the Michigan Department of Revenue by filing hundreds of fraudulent income tax returns using stolen identities.  This type of scheme is commonly called stolen identity refund fraud.  Campbell and Thomas used stolen personal identification information of hundreds of victims, along with fake wage and withholding information, to prepare numerous fraudulent tax returns, claiming over $400,000 in tax refunds.  After the refunds were processed, Campbell and Thomas had the refunds applied to blank prepaid debit cards that they later used for their own benefit.

In order to increase the number of fraudulent tax refunds that they could receive at one time, Campbell and Thomas had the prepaid debit cards mailed to different addresses throughout the Atlanta area.  Many of these addresses were associated with an apartment complex in Cobb County, Ga., where Bridges served as a mail carrier for the United States Postal Service.  Working at the direction of Campbell, Bridges would retrieve the debit cards from the United States mail and deliver them to Campbell. 

During the course of the scheme, Campbell recruited Johnson, then an employee of the Fulton County Ga., Superior Court Clerk's Office, to provide him with stolen identity information.  In September 2013, Johnson accessed county databases on several occasions to obtain identity information for dozens of people who had been booked into the Fulton County Ga., Jail.  Johnson later provided this identity information to Campbell.

Campbell also worked with other individuals to file fraudulent federal and state tax returns, including Justin Cody, a/k/a “Decatur Slim.”  In a related case, Cody and his wife, Aeshia Wilmore, were charged for their involvement in a scheme similar to Campbell’s where they claimed over $600,000 in fraudulent tax refunds. 

The defendants were convicted and sentenced by United States District Judge Steve C. Jones, as described below:

• Kenneth Campbell, a/k/a “Scrilla,” 31, of Atlanta, Ga., was convicted on charges of conspiracy to commit mail fraud and aggravated identity theft on August 26, 2014, after he pleaded guilty.  On November 17, 2014, Campbell was sentenced to serve seven years and three months in federal prison and ordered to pay restitution in the amount of $139,610. 

• Corey Thomas, a/k/a “Lil Corey,” 28, of Atlanta, Ga., was convicted on charges of conspiracy to commit mail fraud and aggravated identity theft on August 26, 2014, after he pleaded guilty.  On November 20, 2014, Thomas was sentenced to serve five years and one month in federal prison and ordered to pay restitution in the amount of $114,754. 

• Adrian Bridges, 43, of Mableton, Ga., was convicted on charges of conspiracy to commit mail fraud and mail theft on August 26, 2014, after he pleaded guilty.  On December 16, 2014, Bridges was sentenced to serve four years in federal prison, three years of supervised release, and ordered to pay restitution in the amount of $81,878. 

• Juarez Johnson, 30, of Atlanta, Ga., was convicted of identity theft on May 15, 2014, after he pleaded guilty.  On July 30, 2014, Johnson was sentenced to serve one year of probation.

• Justin Cody, a/k/a “Decatur Slim,” 33, of Atlanta, Ga., was convicted on charges of theft of government funds and aggravated identity theft on November 22, 2013, after he pleaded guilty.  On April 28, 2014, Cody was sentenced to serve seven years and three months in federal prison and ordered to pay restitution in the amount of $150,329.

• Aeshia Wilmore, 26, of Atlanta, Ga., was convicted of theft of government funds on November 22, 2013, after she pleaded guilty.  On April 28, 2014, Wilmore was sentenced to serve two years in federal prison and ordered to pay restitution in the amount of $150,329.

This case is being investigated by the Internal Revenue Service Criminal Investigation, the Federal Bureau of Investigation, and the United States Postal Service Office of the Inspector General.

Assistant United States Attorney Nekia S. Hackworth 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/.

ROME, Ga. – Former Murray County Chief Magistrate Judge Bryant L. Cochran has been found guilty by a federal jury for arranging the false arrest of a woman who alleged that she had been sexually propositioned by Cochran, for tampering with a witness, and for sexually assaulting a county employee.

“Cochran abused the trust placed in him by the people of Murray County,” said United States Attorney Sally Quillian Yates.  “Cochran used the power and influence of his judicial position in a way that is the fundamental opposite of justice, arranging to have a citizen falsely arrested after she accused him of sexual misconduct.  There is no greater breakdown in the justice system than when a judge uses his authority to wrongly seek to deprive a citizen of her liberty.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated:  “The FBI continues to commit significant resources toward investigating allegations of criminal conduct by public officials. This conviction of former Magistrate Judge Cochran in federal court illustrates our commitment in following the facts in these otherwise sensitive investigations.”

“The GBI is committed to working with our federal partners to hold accountable those whom the public trust to uphold the law. When someone in a position of authority victimizes citizens, law enforcement must be prepared to fully investigate these abuses of power,” said Vernon Keenan, Director, the Georgia Bureau of Investigation.

According to United States Attorney Yates, the charges, and other information presented in court: From January 1, 2004, to August 15, 2012, Bryant Cochran served as the Chief Magistrate Judge in Murray County, Ga. In that position, Cochran sexually assaulted a Murray County employee and unlawfully searched the personal cellular telephone of another Murray County employee.

In addition, on April 9, 2012, Cochran met with a female citizen regarding a legal matter.  During the meeting, Cochran made inappropriate sexual advances towards the citizen. By mid-July 2012, the allegations of Cochran’s sexual misconduct towards the citizen had become public. In response, Cochran called several local police officers providing them with a “tip” – that the citizen carried drugs in her vehicle.

In an effort to discredit the citizen, on or about August 12, 2012, Clifford J. Joyce (who was a tenant of Cochran’s and who has been convicted of conspiring to distribute a controlled substance based on the attempted “framing”) planted a metal tin containing five packets of methamphetamine under the citizen’s car.

Two days later, on August 14, 2012, Murray County Sheriff’s Office Deputy Joshua Greeson (who has since been convicted of witness tampering) conducted a traffic stop on a car occupied by the citizen. During the traffic stop, several officers and a police drug dog searched the car for approximately ten minutes – but did not find any drugs.  Thereafter, Captain Michael Henderson (who is Cochran’s cousin and who has also been convicted of witness tampering) had an approximately two minute telephone conversation with Cochran. Following that call, Henderson told an officer at the scene that according to his information; the citizen hid her drugs in a magnetic box under the left, rear of her car. Upon receiving that information, Greeson found the metal box magnetically attached to the car in that precise location. Inside the box, Greeson recovered five small packets containing methamphetamine. Greeson then told the citizen that he had recovered drugs from her car. At that point, the citizen stated that she had been set up. Despite this, Greeson arrested the citizen and transported her to jail.

On August 15, 2012, the day after the arrest, Cochran resigned his position as Murray County’s Chief Magistrate Judge.  On August 22, 2012, Joyce admitted to law enforcement officers that he planted drugs – after which the local District Attorney dismissed the charges against the woman.  Finally, in an apparent effort to cover up the framing of the woman, Cochran tried to persuade a witness to provide false information to law enforcement officers.

On May 13, 2014, a federal grand jury indicted Cochran, 44, of Chatsworth, Ga. for: (1) Conspiracy against Rights; (2) Deprivation of Rights under Color of Law, (3) Conspiracy to Distribute a Controlled Substance, and (4) Tampering with a Witness.  The trial in this case began on Tuesday, December 2, and the jury began deliberations on December 10, 2014.  The jury returned guilty verdicts on all counts the following day, December 11, 2014.  Cochran will be sentenced February 20, 2015, at 1:30 p.m.

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

Assistant United States Attorneys Jeffrey W. Davis and William L. McKinnon, Jr.  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/gan/.

ATLANTA - Paul L. Black, a/k/a Marcus Lively and Ednecdia Sutina Johnson, a/k/a Tina Johnson have both been sentenced to 15 years in prison for access device fraud, possession of device-making equipment, possession of false identification documents, and possession of a document-making implement.

“This case demonstrates that so-called white collar crime can also give rise to incredible violence,” said United States Attorney Sally Quillian Yates.  “This credit card lab and large volume of account numbers is a reflection of the increasingly sophisticated tools of identity thieves.”

“The defendants endeavored to use technology to their benefit and others’ detriment,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office, “This case illustrates that there are no victimless crimes and the sentences prove that those who commit crimes will be put behind bars.”

According to United States Attorney Yates, the charges and other information presented in court: Early in the morning of December 21, 2011, Clayton County officers responded to a 911 call reporting a home invasion at the residence of the defendants.  When they arrived at the scene, officers found one of the presumed home invaders at the foot of the driveway with a bullet wound to his head.  The officers also found the front door of the house kicked in and saw a sawed-off pump shotgun in a large pool of blood in the foyer.  Blood was also on the columns in the foyer and the walls had multiple bullet holes. 

The responding officers searched the house where they found more blood in the master bedroom, including on both doors and at the foot of the bed. The bedroom door also had been shot by a shotgun and the door that led from the bedroom to the backyard was also smeared with blood. The officers moved to the basement, where they discovered a trail of blood leading to a locked door that had blood smeared on its handle.  Officers forced the door open and when they entered the room they found a highly sophisticated credit card lab that contained credit card presses, computers, printers, card embossers, stacks of blank credit cards and partially completed cards, cash, and two handguns. 

Ultimately, the United States Secret Service determined that the lab had over 97,000 unique credit and debit card account numbers, over 800 completed fraudulent credit cards, and about 100 fake IDs.  They also found $199,000 in cash, over $380,000 in jewelry, and gift cards worth more than $43,000.

Paul L. Black and Ednecdia Sutina Johnson lived alone at the house.  As a result of the discovery of the credit card lab, fraudulent credit cards, and fake IDs, Black and Johnson were indicted by a federal grand jury in a four count indictment charging access device fraud, that is possession of counterfeit credit cards, possession of device-making equipment, the credit card making machines, possession of false identification documents, and possession of document-making implements.  At the time of their arrest, Johnson was on supervised release relating to her earlier conviction for federal bank fraud.

Black, 48, of Jonesboro, Ga., has been sentenced by United States District Court Judge Richard Story to 15 years in prison to be followed by three years of supervised release.  Black was convicted on these charges on March 18, 2014, after he pleaded guilty.  Johnson, 48, also of Jonesboro, Ga., has been sentenced to 15 years in prison to be followed by three years of supervised release.  Johnson was convicted on these charges on March 18, 2014, after she pleaded guilty.

This case was investigated by the United States Secret Service.

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

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the 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 - Rodney Byrd and Reginald Byrd have been arraigned on federal charges of unlawfully purchasing vouchers of the Georgia Women, Infants and Children (WIC) program and debit cards of the Supplemental Nutrition Assistance Program (SNAP). 

“These defendants are charged with stealing money that was intended to be used to provide nutritious food to low-income mothers and children,” said United States Attorney Sally Quillian Yates.  “Our office will continue to pursue those individuals who seek to abuse government assistance programs for their own greed.”

“These defendants sought to benefit financially from their fraudulent activities” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation.  “Their actions also resulted in a loss to the government, but more importantly, they are charged with stealing from individuals who depend on the WIC program for assistance.”

According to United States Attorney Yates, the charges, and other information presented in court: Rodney Byrd owned and operated several Atlanta, Ga., metropolitan-area stores named “Tweet Baby Tweet,” “Chicos and Chicas Variety Store,” and “Tweets, Treats, and Nic Nacs.”  Reginald Byrd managed at least one of these stores.  The defendants directed employees of the stores to make cash payments to customers in return for the customers’ WIC vouchers and for the use of the customers’ SNAP debit cards, which is a violation of the terms of the WIC program and SNAP.  The defendants caused employees to cash checks made out to the employees’ names and used the proceeds to purchase customers’ WIC vouchers and EBT cards.    

Rodney Byrd, 39, of Lawrenceville, Ga., and Reginald Byrd, 38, of College Park, Ga., were arraigned before United States Magistrate Judge Janet F. King. Both defendants were indicted by a federal grand jury on November 24, 2014.   

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 Agriculture, Office of the Inspector General, and Internal Revenue Service Criminal Investigation.

Assistant United States Attorney Thomas J. Krepp is prosecuting the case.

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