Northern District of Georgia

ATLANTA - Donald Thomas, the former payroll director for the Grady Memorial Hospital Corporation, has been convicted by a jury for stealing over $480,000 from one of Georgia’s largest hospitals.

“Thomas embezzled from a longstanding public institution that provides medical care to the poor and underserved in the Atlanta area and beyond,” said United States Attorney Sally Quillian Yates.  “By its guilty verdict, the jury has held him accountable for stealing from taxpayers and Grady’s patients.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “At a time when health care institutions such as Grady Hospital are under the strain to meet the needs of their community, to include those served by publicly funded programs, the criminal actions of former Grady Hospital Payroll Director Thomas are all that more egregious.  The conviction of Thomas should serve as a reminder that the FBI is part of an oversight process involving any and all allegations of thefts from federal health care programs and their related institutions and anyone involved in such activity could find themselves in front of a jury trial on similar charges.”

According to United States Attorney Yates, 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”).  Grady is one of the largest providers of charitable care in the state of Georgia.  It relies significantly on federal funding, including Medicare and grants, to provide medical services regardless of ability to pay. 

From January 2008 until June 2011, Thomas oversaw payroll for all 5500 Grady employees.  He had access to and knowledge of Grady’s payroll system, which he used to falsify additional vacation pay and severance pay for terminated Grady employees.  Since the employees had already left Grady, Thomas calculated that it was less likely that his fraud would be detected.  After adding the additional compensation to the terminated employees’ payroll records, Thomas then removed their bank account numbers and replaced them with his own.  As a result, the fraudulent payments were deposited into his own bank accounts.  A total of 134 fraudulent payments were made in this manner.

Additionally, in two instances, Thomas falsified pay and created paper checks for the additional compensation.  The checks were made payable to terminated Grady employees; however, Thomas forged the employees’ signatures to endorse the checks, and deposited them into his own bank account.

The scheme was discovered when a terminated employee contacted Grady to inform the payroll staff that her 2011 W-2 tax form showed more compensation than she had actually earned.  Further investigation revealed that her payroll records had been altered and additional pay in her name had been deposited into an account controlled by Thomas.  Though Thomas had attempted to cover up his embezzlement by reversing most of the fraudulent changes, in a few instances, he had failed to do so.  As a result, additional wages and compensation were added to several employees’ year-end W-2 tax forms.

Over the course of the scheme, Thomas obtained over $480,000 in falsified vacation and severance pay. 

The jury convicted Thomas, 55, of Atlanta, Ga., of six counts of theft from an organization receiving federal funds and six counts of wire fraud related to the fraudulent direct deposit payments.  He was also convicted of two counts of bank fraud related to the forged checks.  Sentencing is scheduled for February 25, 2015, at 10:30 a.m. before United States District Judge Charles A. Pannell, Jr.

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

Assistant United States Attorneys Shanya Dingle and G. Scott Hulsey 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 - John Harold McGill, the former principal of Mt. Carmel Elementary School in Douglas County, Ga., has been convicted after a jury trial, of using emails and text messages to attempt to entice a minor to engage in unlawful sexual activity. 

“The idea that an elementary school principal would attempt to have sex with a thirteen-year-old girl is disgraceful,” said United States Attorney Sally Quillian Yates. “McGill violated a public trust and all sense of common decency, and a jury has held him criminally responsible.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI’s Violent Crimes Against Children program, along with the FBI Atlanta based Metro Atlanta Child Exploitation (MATCH) Task Force, remains ever vigilant for individuals such as Mr. McGill, who not only represent a threat to our children, but who are also in a position of trust over those very children.  The conviction by jury trial of Mr. McGill, a former elementary school principal, on federal charges of attempting to entice a minor child for sex removes a very real and serious threat from our community.  The FBI and its MATCH Task Force will continue to work with its area law enforcement partners as it maintains it’s much needed vigilance in protecting our children from those who would exploit them.”

According to United States Attorney Yates, 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 texts 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. However, the “mother” was an FBI Task Force Officer, and McGill was arrested.

McGill, 57, of Douglasville, Ga., was the principal of Mt. Carmel Elementary School in Douglas County, Ga., until he was arrested on March 2, 2014.   He was convicted after a two-day trial. Federal District Judge William S. Duffey, Jr., remanded McGill into custody and set sentencing at 9:30 a.m. on February 6, 2015. 

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/.

COLUMBIA, SC – Joel Perrin Robinson has been arraigned on federal drugs and weapons charges in relation to the shooting of a DEA Agent while a search warrant was being executed at his home on October 20, 2014.

“This defendant is charged with opening fire on federal agents while they were serving a federal narcotics search warrant.  A DEA Special Agent was seriously injured,” said United States Attorney Sally Quillian Yates.  “This office will continue to work with its law enforcement partners to ensure that he is held accountable for his actions.”

John S. Comer, the Acting Special Agent in Charge of the DEA Atlanta Field Division stated, “The wounding of our agent during the execution of a Federal Search Warrant reinforces the daily dangers law enforcement officers face while conducting narcotics investigations.  The DEA will work closely with our federal, state and local counterparts to assist the US Attorney’s Office in the prosecution of this matter.”

David A. Thomas, Special Agent in Charge of the FBI’s Columbia Field Office said, “This case is the result of an unfortunate reality that happens far too often to law enforcement officers working selflessly to make our communities safer. It is a grim reminder of the violence associated with the illegal drug trade and the dangers faced by law enforcement officers trying to stop it.”

According to United States Attorney Yates, the charges, and other information presented in court:   Beginning in 2007, Robinson, along with co-conspirators Coleman Warnock and Adrian Banks (both have been charged with narcotics offenses in the Northern District of Georgia) allegedly purchased, stored, brokered, distributed and used a number of chemicals, including piperidine, a PCP precursor, to manufacture large quantities of PCP, a controlled substance.  At the direction of Warnock, Banks transported chemicals used to manufacture PCP from the Atlanta, Ga., area to Robinson, who stored the chemicals at his residence in Orangeburg, SC.  Then, Robinson, Warnock and Banks allegedly transported chemicals used to manufacture PCP from South Carolina to other jurisdictions. 

On July 6, 2013, Warnock and two other individuals were processing chemicals associated with PCP manufacturing at a residence located in Fairburn, Ga.  On that date, a green GMC Canyon pickup truck registered to a relative of Robinson was located at the residence, along with two trailers which had been used by Warnock, Banks, and Robinson to transport chemicals associated with PCP manufacturing.  One of the trailers was purchased and titled in the name of a relative of Robinson.  At some point during the processing of the chemicals, a fire erupted and burned for two days - destroying the residence.

On or about December 4, 2013, at the direction of Warnock, another individual transported a trailer which contained, among other items, 55-gallon drums of piperidine to Robinson’s Orangeburg residence.

On October 20, 2014, at approximately 6:15 a.m., DEA Special Agents and Task Force Agents were executing a federal search warrant to search Robinson’s Orangeburg residence for evidence of a drug trafficking crime while announcing “police, search warrant” in a loud and continuous manner.  The indictment alleges that Robinson fired four shots from his bedroom. Then, he walked out of his bedroom into the pool area of the residence.  At that time, Robinson allegedly used a laser sight on his .45 caliber pistol and fired an additional two rounds at DEA agents who were part of the search warrant team, providing coverage for agents executing the search warrant in the garage area. One of the rounds fired by Robinson struck a DEA Special Agent in the right elbow, causing the agent serious injury.  Robinson then surrendered to law enforcement and was placed under arrest.

During the search of the residence, agents also located an AR-15 rifle with three magazines and Aim Shot scope, a 16-gauge shotgun, a semi-automatic rifle, a .22 caliber semi-automatic rifle, a 12-gauge shotgun, a bolt action rifle, a .22 caliber revolver, a .38 caliber revolver with laser grip sight, and a 380 handgun with magazine and laser sight.  A bulletproof vest was also recovered from Robinson’s bedroom.

A federal grand jury seated in the District of South Carolina returned the indictment for Joel Perrin Robinson, 32, of Orangeburg, SC., on November 20, 2014.   He was arraigned before a United States Magistrate Judge in Columbia, SC.  

The United States Attorney’s Office for the Northern District of Georgia is handling the prosecution of Robinson as the United States Attorney’s Office for the District of South Carolina has voluntarily recused itself from the case. 
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.

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

Assistant United States Attorneys Michael Herskowitz, and Vivek Kothari, who have been admitted as Special Assistant U.S. Attorneys in the District of South Carolina, are prosecuting the case.

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

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the 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 - Emmanual Hidalgo, and Edwin Menjivar, have been sentenced for their participation in violent crimes that they committed as members of the street gang known as Mara Salvatrucha 13, or MS-13.

“MS-13 preyed on innocent civilians and suspected rival gang members,” said United States Attorney Sally Quillian Yates. “They spread fear and terror through large swaths of Gwinnett and DeKalb counties. People who choose to join gangs and commit violent crimes will learn firsthand that they will be held accountable for their actions and will spend time in prison.”

“The defendants in this case indiscriminately brought murderous violence against rival gang members and innocent civilians alike,” said Brock D. Nicholson, special agent in charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Atlanta. “HSI is proud to continue to partner with the FBI and the U.S. Attorney’s Office to target violent transnational gang members who threaten the safety of our communities.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The sentencing of these violent MS-13 gang members to federal prison will have a meaningful and positive impact on public safety in those areas of metro Atlanta that this gang for so long called their home. This case truly represents the problem posed and what is required to address these transnational gangs that bring their level of organized crime from their countries into ours.  The FBI will continue to dedicated extensive investigative resources toward the combatting of these violent groups.”

According to United States Attorney Yates, the charges and other information presented in court: MS-13 is an international gang whose members come primarily from Central American countries.  By 2005, MS-13 had established a presence in the Atlanta area, staking out Norcross and Chamblee as their strongholds.  Members of MS-13 violently attacked suspected rival gang members.  They also committed countless armed robberies of civilians as well as businesses.  The defendants were sentenced today for their participation in the following crimes:

• Emmanual Hidalgo, also known as Scooby, along with other gang members, planned to rob a suspected drug dealer at a hotel in DeKalb County in April 2007.  When the suspected drug dealer turned out to have his own gun, Hidalgo and his fellow MS-13 members engaged in a shootout with him that spilled outside the hotel room.  Surveillance video showed one of the MS-13 members stopping to pick up the suspected drug dealer’s weapon, which he later showed off as a trophy.

• Edwin Menjivar, also known as Vago and Chilly Willy, drove fellow gang member Ernesto Escobar in October 2007 on a mission to shoot suspected rival gang members.  They went to an apartment complex in Gwinnett County where many members of the gang SUR-13 lived.  As Menjivar drove, Escobar fired shots, hitting one man in the neck as he was standing outside his apartment patio.  The police later recovered the firearm that Escobar used underneath Menjivar’s bedroom mattress.  Ernesto Escobar was charged in the same indictment; was convicted after a jury trial; and is now serving a life sentence.

            The court sentenced the defendants as follows:

• Emmanual Hidalgo, 25, of Chamblee, Ga., has been sentenced to 25 years in prison to be followed by five years of supervised release.  Hidalgo was convicted on these charges on August 2, 2013, after he pleaded guilty RICO conspiracy and use of a firearm in relation to a crime of violence.

• Edwin Menjivar, 33, of Norcross, Ga., has been sentenced to eleven years in prison to be followed by three years of supervised release.  Menjivar was convicted on these charges on June 7, 2013, after he pleaded guilty to RICO conspiracy and Violent Crime in Aid of Racketeering.

These defendants will be deported upon completion of their prison sentences. There is no parole in the federal system.

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

Assistant United States Attorneys Paul R. Jones and Kim S. Dammers and 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 - LaTonya Evans, a former United Stated Postal Service employee, has been sentenced to federal prison for participating in a conspiracy that culminated in the robbery and shooting of a postal truck driver on December 20, 2013, in Conley, Ga.

“By providing her co-defendants with inside information, Evans enabled a robbery that nearly killed her co-worker,” said United States Attorney Sally Quillian Yates.  “Evans used her knowledge of the Postal Service for personal gain and violated the trust of the public and her fellow postal workers.”

“The safety and security of Postal Service employees is core to the mission of the Postal Inspection Service. Postal Inspectors are committed to bringing to justice those who commit violent crimes against postal employees.” said Thomas Noyes, Postal Inspector in Charge of the Charlotte Division.

According to United States Attorney Yates, the indictment, and other information presented in court:  LaTonya Evans helped develop a scheme, with co-defendants Kendrick Watkins and Charles Jackson, to rob a postal truck driver.  During phones calls and face-to-face meetings, Evans provided Watkins and Jackson with non-public information that enabled them to commit the robbery.  On December 20, 2013, during a routine pick-up in Conley, Ga., Jackson and Watkins approached the postal truck they had targeted and demanded keys from the driver.  When the victim did not immediately comply, Jackson shot the victim through the torso, nearly taking his life.  The robbers bound the victim’s feet and took his cell phone so that he could not run or call for help.  Jackson and Watkins drove away with the stolen truck, and all its contents, and met with Evans later that same evening to discuss the robbery.  The victim struggled to reach the nearest road where he eventually flagged down a passerby for help, after waiting almost 45 minutes.

LaTonya Evans, 44, of Jackson, Ga., was sentenced by U.S. District Judge Thomas W. Thrash, Jr., to 15 years and eight months in prison, followed by three years of supervised release.  Evans was convicted on September 9, 2014, after pleading guilty to conspiring to interfere with commerce by robbery. 

Co-defendants Kendrick Watkins, 39, of Rex, Ga., and Charles Jackson, 55, of Griffin, Ga., were convicted on August 13, 2014, and August 5, 2014, respectively, after both men pleaded guilty to armed postal robbery and discharge of a firearm during a crime of violence.  Watkins and Jackson will be sentenced on January 7, 2015.  They both face a maximum sentence of life imprisonment.    

This case was investigated by the United States Postal Inspection Service.

Assistant United States Attorneys Mary Kruger, John Ghose and Angela Garland prosecuted this case.

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

ATLANTA – Miguel Angel Hernandez and Maria del Pilar Moreira have been indicted on charges of conspiracy and healthcare fraud for filing fraudulent claims with Medicare and the Georgia Medicaid program. 

“These defendants are charged with preying on senior citizens to steal millions of dollars in Medicare and Medicaid funds,” said United States Attorney Sally Quillian Yates.  “They are now being held accountable for their outrageous conduct.”

“Health care business owners who try to make a quick buck by billing taxpayer-funded health care programs for services they never actually provided will instead pay a high price for their greed-fueled fraud,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta.

Attorney General Sam Olens said, “The alleged scam by the defendants in this case is reprehensible.  We work diligently to protect our Medicaid dollars, and we will not allow our finite funds to be used as a personal piggy bank for dishonest providers.  We look forward to working with the U.S. Attorney’s Office in prosecuting this case.”

According to United States Attorney Yates, the charges and other information presented in court:  Hernandez and Moreira owned and operated two medical clinics, East Point Medical Center in East Point, Ga., and Family First Medical Center, in Chamblee, Ga.  From 2010 to 2013, the defendants allegedly submitted false claims to Medicare and Medicaid for medical services that were never provided to their clinics’ patients.

As part of the alleged scheme, the defendants transported patients in vans daily from locations including senior centers, with up to 60 patients arriving for treatment each day.  Physical therapists sometimes led the patients in group exercises, but other times unlicensed aids supervised the patients.  Although these patients received little medical treatment, the defendants allegedly submitted bills claiming falsely that each patient had received multiple physical therapy procedures.  The defendants billed Medicare and Medicaid over $2 million for various individual physical therapy procedures they claimed to have provided to patients.  A Medicare audit revealed that on occasion the defendants billed more than 24 hours’ worth of medical services in a single day. 

The defendants also allegedly billed Medicare and Medicaid for numerous trigger point injections that were never given.  Although some patients received a limited number of trigger point injections as a treatment for pain, the defendants billed for many more injections than were actually given.  The defendants sometimes gave patients Vitamin B-12 injections and then billed them as trigger point injections.  This part of the fraud was particularly profitable, because Medicare paid $0.66 for a B-12 shot whereas it paid $58.52 and $60.56 for two kinds of trigger point injections.

The defendants submitted the bills to Medicare and Medicaid under the name of a medical doctor who did not perform the services claimed.  The doctor was in the clinic only a couple of days a week and saw a limited number of patients, yet his name appeared as the provider for most of the services billed by the defendants.

The defendants also designed and implemented promotions to attract patients to their clinic.  They offered the patients massages, cash, gift cards, food, dollar prizes, and raffles for televisions, to induce the patients to visit the clinic on a regular basis.  They also held Bingo games at the clinic and hosted holiday luncheons for the patients.

Three holiday luncheons are described in the indictment.  On November 28, 2011, the defendants had patients driven to a Thanksgiving party at Big Daddy’s Dish restaurant in College Park, Ga.  On December 30, 2011, patients were driven to a Christmas party at Piccadilly restaurant in Atlanta, Ga.  On May 14, 2012, patients were driven to a Mother’s Day party again at Piccadilly restaurant.  The defendants submitted bills to Medicare and Medicaid for physical therapy procedures and trigger point injections allegedly provided to the patients on the days of these parties, even though the patients received no medical services there.  At the Thanksgiving and Christmas parties, the defendants held raffles and gave away televisions.

A federal grand jury indicted Hernandez, 58, and Moreira, 47, both formerly of Atlanta, Ga.  The indictment charges the defendants with one count of conspiracy to commit healthcare fraud and 24 counts of healthcare fraud.  The defendants’ whereabouts are currently unknown.  Anyone with information about the location of these defendants is asked to contact the U.S. Department of Health and Human Services, Office of Inspector General toll-free at 1-888-476-4453, or submit this form:  https://forms.oig.hhs.gov/hotlineforms/fugitive-form.aspx.

Members of the public are reminded that the indictment contains only allegations.  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 Special Agents of the U.S. Department of Health and Human Services, Office of the Inspector General, and Investigators from the Georgia Medicaid Fraud Control Unit and the Georgia Department of Community Health.

Assistant United States Attorney Stephen H. McClain and Georgia Assistant Attorney General Lyndie M. Freeman are prosecuting the case.

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 HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.

ATLANTA – Michael J. Ellis has been sentenced for stealing the bank debit card numbers and passwords of individuals in Georgia and Florida through an ATM skimming device.

“This sentencing marks the end of an ATM skimming ring that victimized over 5,000 people in Georgia and Florida,” said United States Attorney Sally Quillian Yates.  “Identity theft is a growing problem that damages the good names and credit of too many innocent people, and we remain committed to combatting this insidious crime in all of its various forms.”

“The Secret Service, in conjunction with our law enforcement partners, will continue to arrest those that commit crimes that prey on unsuspecting victims,” 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 defrauding victims and ignoring the consequences of their actions.”

According to United States Attorney Yates, the charges and other information presented in court:  Ellis, working with co-defendants Zira M. Bailey and Bryan S. Kees, used illegal skimming devices to steal over $130,000 from bank customers by installing the devices at SunTrust automated teller machines (ATM’s) in Georgia and Florida.  When a customer used the ATM with a skimming device installed, the device electronically recorded the customer’s debit card number and a small camera in the device video recorded the ATM keyboard as the customer entered his or her password.

The defendants then downloaded the information from the device to a computer.  Using a magnetic stripe card reader/writer, they re-encoded gift cards with the stolen account information.  They then used the altered gift cards at ATMs to drain money from the victims’ bank accounts.  Over 500 victims were linked to Bailey, Ellis, and Kees from the SunTrust ATMs. 

On December 28, 2012, Bulgarian Customs officials notified the United States Secret Service in Atlanta that a DHL parcel containing illegal skimming devices was being shipped to the United States.  The Secret Service obtained a federal search warrant for the package and found three skimming devices.  The package was addressed to a UPS Store in Atlanta, Ga.  Ellis, Bailey, and another co-conspirator, WB Wohrman, were listed as authorized recipients of mail to the UPS box.  In a later search of a garage controlled by Ellis, law enforcement found 250 financial transaction cards, magnetic reader/writers, false ATM overlays, laptops with ATM videos and debit card information, and a wig. 

Ellis, 36, of Decatur, Ga., was sentenced by United States District Judge Orinda D. Evans to eight years and five months in federal prison and three years of supervised release, and ordered to pay $136,374.31 in restitution. 

Judge Evans previously sentenced Kees, 37, of Savannah, Ga., to seven years in federal prison, and Bailey, 27, of Picayune, Miss., to five years and five months in federal prison.  Kees and Bailey were also sentenced to three years each of supervised release and $136,374.31 in restitution.  All three defendants pleaded guilty to conspiracy, access device fraud, and aggravated identity theft.

In a related case, Plamen Atanasov, Stoyno Filtshev, Tsvetil Iliev, Nedyalko Palazov, and WB Wohrman were charged with using ATM skimming devices at Bank of America, JP Morgan Chase, and Wells Fargo ATMs in the metro Atlanta area.  These defendants stole over $380,000 from bank customers, and over 4,700 victims were linked to this related scheme.  Iliev, 34, formerly of Atlanta, Ga., is currently a fugitive, having fled the United States after his indictment with the assistance of Kees and Bailey.  The other four defendants pleaded guilty to conspiracy, access device fraud, and aggravated identity theft.  Judge Evans sentenced those four defendants as follows:

• Atanasov, 31, of Sandy Springs, Ga., was sentenced on April 25, 2014, to seven years in prison, three years of supervised release, and $386,951.12 in restitution.

• Filtshev, 53, of Atlanta, Ga., was sentenced on April 25, 2014, to seven years and eleven months in prison, three years of supervised release, and $386,951.12 in restitution.

• Palazov, 29, of Atlanta, Ga., was sentenced on April 25, 2014, to eight years and eleven months in prison, three years of supervised release, and $386,951.12 in restitution.

• Wohrman, 37, of Buford, Ga., sentenced on April 28, 2014, to eight years and three months in prison, three years of supervised release, and $386,951.12 in restitution.

This case was investigated by Special Agents of the United States Secret Service.

Assistant United States Attorney Stephen H. McClain prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the 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 – Daniel K. Lane, Jr. has been sentenced for conspiring to commit healthcare fraud by filing fraudulent claims with Medicare, Blue Cross Blue Shield, and other insurers. 

“This healthcare fraud scheme reached all the way up to the Vice President of Compass Healthcare,” said United States Attorney Sally Quillian Yates.  “While serving as Vice President and CFO, the defendant set up the business to automatically bill insurance companies for expensive medical equipment never provided to customers, and then forged prescriptions to make the claims look legitimate.  Corporate executives who engage in healthcare fraud face federal prison.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Mr. Lane’s criminal conduct was driven by personal greed and today’s sentencing will not only hold him accountable for those actions but will serve as a reminder to others that the FBI and its law enforcement partners will identify, investigate, and present for prosecution those individuals involved in similar such activities.”

“Today’s sentence demonstrates that regardless of one’s position within a corporation, if you defraud Medicare you will be held accountable,” 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.  “Falsifying patients’ medical files in order to generate more corporate revenue at tax payers’ expense will not be tolerated and we will vigorously pursue all such cases.”

According to United States Attorney Yates, the charges and other information presented in court:  Daniel K. Lane, Jr. was the Vice President and Chief Financial Officer for Compass Healthcare, Inc., a durable medical equipment business headquartered in St. Louis, Mo., with offices in Atlanta, Ga. and other cities.  Compass Healthcare specializes in providing compression stockings to patients who have been diagnosed with medical conditions such as chronic venous insufficiency and edema.  Doctors may prescribe compression stockings, which come in different levels of tightness, as treatment for these conditions.

Lane’s position included the responsibility for billing insurance companies for the compression stockings that Compass Healthcare provided to individuals who were covered by insurance.  He fraudulently set up the company’s billing system so that in most instances it would automatically bill the insurers for the highest compression stocking, regardless of which stocking had actually been provided to the individual, in order to generate higher payments from Medicare, Blue Cross, and other insurers.  As a result, Compass Healthcare routinely “upcoded” the claims it submitted to insurers for the stockings it had provided to individuals.

Lane conspired with an Office Manager for Compass Healthcare, Holly Keisker, and others, to submit these false claims and conceal the fraudulent upcoding.  Also as part of the scheme, Compass Healthcare included false diagnoses on its insurance claims to ensure payment.  These false claims represented that Compass Healthcare customers had been diagnosed with various medical conditions, including chronic venous insufficiency and edema, to support the claims for high compression stockings, when in fact the customers had not been diagnosed by a doctor.  Instead, Compass Healthcare used “blanket” diagnosis codes that were false to support insurance claims for compression stockings provided to customers who had no medical condition.  Lane, Keisker, and others conspired to forge and alter doctors’ prescriptions so that they would support the fraudulent claims that had been submitted to insurers.  They altered the prescriptions to falsely reflect that a high compression stocking had been prescribed and that the patient had been diagnosed with a medical condition.  In 2011, Lane submitted altered prescriptions to Blue Cross in response to an audit conducted by the insurer.

Lane, 57, of St. Louis, Mo., was sentenced by United States District Judge Willis B. Hunt, Jr. to one year and six months in federal prison and three years of supervised release, 100 hours of community service, and ordered to pay $597,304.76 in restitution.  On August 27, 2014, Lane pleaded guilty to one count of conspiracy to commit healthcare fraud. 

On September 19, 2013, Keisker, 62, also of St. Louis, Mo., pleaded guilty to one count of conspiracy to commit healthcare fraud.  Her sentencing is scheduled for December 10, 2014, at 10 a.m., before Judge Hunt.

This case was investigated by Special Agents of the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, Office of the Inspector General.

Assistant United States Attorneys Stephen H. McClain 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 is www.justice.gov/usao/gan.

ATLANTA - The United States Attorney’s Office and the Department of Justice reached a settlement agreement with the DeKalb County, Ga., School District to resolve the Department’s inquiry into the district’s ability to prevent and effectively respond to harassment based on national origin and religion. 

“Every child should be able to attend school without the fear of being taunted and physically assaulted based on his religion or national origin,” said United States Attorney Sally Quillian Yates.  “I am encouraged that DeKalb County School District has demonstrated a commitment to ensure that its schools are free of harassment.”

“We commend the DeKalb County School District’s commitment to ensuring that all students – including Sikhs, Muslims, Arabs, and South Asians – can grow and learn in a safe and supportive environment free from discrimination based on religion or national origin,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division.  “DeKalb County school district has worked hand-in-hand with the department to identify and expand those policies that are successful at protecting kids while modifying those practices that need improvement, and we are confident that the district will continue its work to eliminate harassment in its schools.”         

The agreement ensures that the more than 100,000 students in DeKalb County School District (DeKalb County) will be protected by clear and comprehensive anti-harassment policies and procedures in compliance with federal civil rights laws.  It also ensures that parents and students will have access to essential information, including discipline policies and procedures, in their preferred language. 

In May 2013, DeKalb County, the Department of Justice (DOJ), and the United States Attorney’s Office reached a settlement agreement that resolved specific allegations of religious and national origin harassment of a Sikh student.  At the time of the 2013 agreement, the DOJ, the United States Attorney’s Office, and DeKalb County agreed to continue working collaboratively to resolve the remaining concerns regarding the content and implementation of the school district’s anti-harassment policies and the training of employees and students on such policies.  Since then, DeKalb County has worked with the DOJ and the United States Attorney’s Office to develop a plan for enhancing anti-harassment protections and increasing access to information for all parents and students; today’s agreement is the result of that collaboration. 

The agreement requires, among other things, that the DeKalb County School District develop and implement annual age and position appropriate trainings on religious and national origin harassment for all students, staff who interact with students (including administrators, teachers, counselors, and bus drivers), and district-level administrators who interact with students or who are involved in addressing harassment or bullying in the district.  The training will include topics related to post-9/11 backlash and harassment that perpetuates negative stereotypes impacting the Sikh, Muslim, Arab-American, and South Asian communities.

The enforcement of Title IV is a top priority of the DOJ’s Civil Rights Division.  Additional information about the Civil Rights Division of the DOJ is available on its website at www.justice.gov/crt.   

Assistant United States Attorney Aileen Bell Hughes handled this matter on behalf of the United States Attorney’s Office. 

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

ATLANTA – Ray H. Adams and Samuel J. Crump have been sentenced to federal prison for possessing and conspiring to possess the biological toxin ricin for use as a weapon.

“Both the words and actions of these defendants supported an idea dangerous to our democracy – that violence is justifiable when citizens grow frustrated with government,” said United States Attorney Sally Quillian Yates.  “This case demonstrates that we must remain vigilant in protecting our country, not only from the threat posed by international violent extremists, but also from those within our own borders who threaten our safety and security.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Today's sentencing of Adams and Crump concludes a thorough and extensive investigation as well as an equally extensive and intensive prosecution. On this occasion, we would like to remind the public that the FBI's absolute number one priority is to prevent another terrorist attack on U.S. soil.  We believe that we did that here.  While the FBI fully understands and respects our citizens' rights to free speech, our investigations into these matters always look at the overt actions taken in furtherance of the free speech.  While only time would tell the true intentions of these individuals, the FBI and its law enforcement partners cannot wait and the public expects no less from us.”

According to United States Attorney Yates, the evidence, and testimony presented in court:  Between March 2011 and November 2011, Ray H. Adams and Samuel J. Crump conspired to produce and possess ricin, a deadly biological toxin.  During this time period both defendants and others attended meetings where participants discussed targeting various government officials, including employees of federal agencies.  These meetings were monitored by FBI agents through the attendance of a confidential source, who recorded the meetings and provided the information to the FBI. 

During a recorded meeting in September 2011, Crump stated that he wanted to make ten pounds of ricin and disperse it in various cities, including Washington, D.C. and Atlanta, Ga. Crump described a scenario for dispersing the ricin in Atlanta in which the toxin would be blown from a car traveling on interstates. Crump allegedly also said that he possessed the ingredient used to make the toxin and cautioned the source about the dangers of handling it.

On November 1, 2011, FBI agents arrested Crump and Adams and executed search warrants at their residences.  During a search of Adams’ residence, agents recovered castor plants, castor beans, a recipe for extracting ricin from castor beans, five mason jars and other items.  During a search of Crump’s residence agents also recovered castor beans.  On December 1, 2011, agents searched a storage unit rented by Crump and recovered castor beans and a copy of the same ricin recipe recovered during a search of Adams’ residence.

In June 2013, after receiving information that Adams had successfully extracted ricin from the castor beans, FBI laboratory testing detected ricin in the five mason jars seized from Adams’ property.  In July 2013, based on the presence of ricin in the five mason jars, the FBI obtained and executed a second search warrant at Adams’ residence and seized 28 additional mason jars, some labeled as fruit preserves.  In November 2013, laboratory testing confirmed the presence of ricin in the 28 mason jars. 

FBI experts found that the ricin detected in mason jars was in its non-active state and experts were unable to determine whether the ricin would have been lethal if it were inhaled or ingested.  There is no evidence that Adams distributed any jars of preserves that contained ricin.

Adams, 58, of Toccoa, Ga., has been sentenced to ten years in prison to be followed by five years of supervised release.  Crump, 71, also of Toccoa, Ga., has also been sentenced to ten years in prison to be followed by five years of supervised release.  Adams and Crump were found guilty by a jury on January 17, 2014.

This case was investigated by the Joint Terrorism Task Force (JTTF), which includes agents of the FBI, Federal Protective Service (FPS), Georgia Bureau of Investigation (GBI), and Treasury Inspector General for Tax Administration (TIGTA).  Assistance in this case has been provided by law enforcement agencies from Habersham County and Stephens County (Georgia), and the District Attorney’s Office for the
Mountain Judicial Circuit.

Assistant United States Attorneys Jeffrey A. Brown and William L. McKinnon, Jr. 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 - Enkeleon Manati has been sentenced to three years in prison for his role in an alien smuggling operation based in Greece. 

“It is imperative that we verify the true identities of those entering our country,” said United States Attorney Sally Quillian Yates.  “Two people with fraudulent Greek passports, which the defendant helped them obtain, attempted to enter the U.S.  Thanks to the diligence and training of Customs and Border Protection agents at Hartsfield-Jackson International Airport, both were detained and Manati’s criminal conduct was discovered.    Those who assist individuals in illegally entering the United States will be held accountable.”

“Preserving the integrity of our immigration system is a key aspect in upholding our national security,” said Brock D. Nicholson, special agent in charge of ICE Homeland Security Investigations (HSI) in Atlanta. “Thanks to some great screening work by U.S. Customs and Border Protection officers we have now sealed off a potential vulnerability in the system.”

According to United States Attorney Yates, the charges and other information presented in court:  Beginning in or about October 2012, Enkeleon Manati and co-conspirator Matrona Koulga began smuggling Albanian citizens into the United States using fraudulently obtained Greek passports issued under assumed identities.  According to Koulga, Manati referred Albanian citizens to Koulga who wished to travel to the U.S. but could not lawfully obtain visas.  Manati arranged for at least six Albanian citizens to meet with Koulga in Greece for this purpose.  Albanian family members in New York had contacted Manati for help in smuggling relatives into the United States. 

In October 2012, for instance, Koulga and an Albanian citizen using a fraudulently obtained Greek passport, traveled from Switzerland to Florida.  In April 2013, Koulga and two Albanian citizens using Greek passports issued under assumed identities, traveled from Italy to France to Atlanta, Ga.  They then attempted to enter the United States at Hartsfield-Jackson International Airport using fraudulently obtained Greek passports that Manati and Koulga helped them acquire.  According to these individuals, both of whom were called as witnesses during Manati’s trial, they each met Koulga in Greece, after which Koulga took them to Greek government offices to obtain officially issued Greek passports in assumed identities. 

Manati traveled to Atlanta to meet with the family members of the Albanian citizens attempting to enter the United States.  One family member testified that he brought $24,000 which he intended to pay Manati, once his relative, a nephew, was in the United States.  But the plan was thwarted when U.S. Customs and Border Protection agents realized that these Albanian individuals, attempting to enter the United States through Atlanta on Greek passports, were unable to speak Greek.  The Albanian citizens were promptly detained, and Manati and Koulga were later arrested.      

On September 30, 2013, Koulga pleaded guilty to alien smuggling.  She received a sentence of seven months of confinement and agreed to testify at Manati’s trial.  Law enforcement in Greece investigated the smuggling operatives in that country and have made arrests in the case as well.      

Following a jury trial on August 29, 2014, Manati, a/k/a Keli, 41, of Jacksonville, Fla., was convicted of conspiracy to commit, and commission of, alien smuggling.  He was sentence to three years in prison, to be followed by three years of supervised release.  Manati was also sentenced to perform 150 hours of community service. 

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

Assistant United States Attorney Susan Coppedge 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 - Ethel Elaine Daniels has been sentenced for filing false tax returns that claimed over $20 million in fraudulent refunds, including filing false tax returns in the names of over 1,000 stolen identity victims.

“This defendant victimized thousands of innocent citizens by misusing their identities to perpetrate her scheme,” said United States Attorney Sally Quillian Yates.  “She also sought millions of dollars in fraudulent refunds from the U.S. Treasury over the course of three years.  Those who try to profit by filing false returns will be prosecuted to the fullest extent of the law.”

“Daniels perpetuated a scheme that was driven by greed and a blatant disregard for the tremendous damage it inflicted on innocent victims” said Veronica F. Hyman-Pillot, Special Agent in Charge. “Today's sentencing of Daniels should serve as a stark reminder to others that such greed based criminal behavior comes with a cost, prison time.”

According to United States Attorney Yates, the charges and other information presented in court:  Daniels owned and operated two tax preparation businesses in the metro-Atlanta, Ga., area.  The first, Elaine Taxes, was located in College Park, Ga.  The second, Elaine Taxes #2, was located in Riverdale, Ga.  Daniels carried out two schemes from both tax preparation businesses.

From November 2010 through May 2013, Daniels and her co-conspirators obtained personal identifying information, including names and Social Security Numbers, of thousands of individuals without their knowledge or consent.  Daniels and her co-conspirators got the stolen identities by recruiting people to work as runners to bring in lists of the stolen identity information.  Then, unbeknownst to the stolen identity victims, Daniels and her co-conspirators electronically filed fraudulent tax returns in the victims' names.  The false tax returns contained fabricated information such as fake claimed-income amounts, business losses, and tax refunds due.  Daniels and her co-conspirators fabricated the information to insure that a tax refund would be issued.  Daniels and her co-conspirators then shared the fraudulently obtained tax refunds. 

Daniels and her co-conspirators also filed fraudulent tax refunds on behalf of individuals who actually visited Elaine Taxes and Elaine Taxes #2 to have their tax returns prepared.  Daniels was the leader, and trained new employees to prepare the tax returns for customers by adding false income information and business loss and expense information to the tax returns to insure that a tax refund would be due.    Daniels and her co-conspirators would keep a portion of the fraudulently obtained tax refund as a tax preparation fee.

In all, Daniels’ conspiracy obtained over $20 million in fraudulent income tax refunds through their two false tax return schemes run out of Elaine Taxes and Elaine Taxes #2.

Daniels used her illegally gotten funds to do things like take her extended family on a gambling trip to Biloxi, Miss., go on spending sprees for thousands of dollars of clothes and electronics, and buy cars for family and friends. 

Daniels, 46, of Riverdale, Ga., has been sentenced to 16 years in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $12 million.  Daniels was convicted on charges of conspiracy to commit wire fraud, wire fraud, and aggravated identity theft on May 28, 2014, after she pleaded guilty.

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

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 – Armed career criminal Tavares Keith has been sentenced to nineteen and a half years in prison for the armed robbery of a BB&T Bank in Riverdale, Ga.

“This defendant terrorized bank employees and customers during an armed bank robbery, leaving lasting psychological scars,” said United States Attorney Sally Quillian Yates.  “His violent actions earned the lengthy sentence the court imposed on him today.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: "The quick response by the officers of the Riverdale Police Department set in motion not only the apprehension and prosecution of a career violent offender, but also to today's sentencing and his removal from our streets for many years.  The FBI commends those officers and prosecutors who ensured that Mr. Keith would be held accountable for his criminal career with today's lengthy prison sentence."

According to United States Attorney Yates, the charges and other information presented in court: On March 10, 2014, Keith entered the BB&T Bank at 6375 Highway 85 in Riverdale, Ga., wearing a brown hooded sweatshirt and a black ski-mask.  He pointed a loaded .40 caliber handgun into the bank manager’s stomach and yelled, “Give me all the money!”  When the manager said he did not have any money, Keith forced the manager to take him to the teller line where Keith demanded that the tellers hand over the bank’s cash.  While Keith pointed his weapon at the bank tellers, the bank manager ran into his office and called the police.

After robbing the bank of approximately $4,140, Keith ran from the bank.  The police arrived quickly, and a witness pointed out the direction of Keith’s flight.  The police pursued Keith on foot and apprehended him after a short chase.  The police were able to recover all the money stolen from the bank, the black ski-mask, the brown hooded sweatshirt, a cell phone, a pair of gloves, and the loaded handgun.

Keith, 33, of Atlanta, Ga., has been sentenced to 19 years, seven months in prison to be followed by five years of supervised release.  Keith was convicted of these charges on July 25, 2014, after he pleaded guilty.  Keith, originally of Charleston, S.C., is an armed career criminal who had been previously convicted of multiple crimes, including at least four felonies.

This case was investigated by the Federal Bureau of Investigation and the Riverdale 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 – Patrice Hairston, Bonnie Rose, Sarah Hyldahl, and Ronnika Allen have been sentenced for their roles in a scheme to defraud mortgage lenders of over $2 million in mortgage loans.

“Mortgage fraud has dragged down our economy, blighted our communities, and put in jeopardy the financial security of many Americans.  We will diligently pursue those who misuse the dream of home ownership to line their own pockets by fraud and deceit,” said United States Attorney Sally Quillian Yates.     

“The U. S. Postal Inspection Service is committed to protecting the American Public from individuals who make misrepresentations to prey on innocent victims,” said Thomas L. Noyes II, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service.  “The collaborative effort between federal agencies in this case is an excellent example of the partnerships that focus on bringing those to justice who violate the law and defraud hardworking citizens.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Today's sentencing of this group engaged in mortgage fraud represents the federal government's commitment toward combatting such criminal activities. The FBI will continue to work with its various law enforcement partners in identifying such individuals engaged in this activity.”

According to United States Attorney Yates, the charges and other information presented in court:  Hairston, a licensed real estate agent, and Rose were long time business partners, operating an office rental business on Covington Highway in DeKalb County, Ga.  In late 2007 or 2008, Hyldahl and Allen began working out of Hairston and Rose’s office space. 

Beginning in 2008, Hairston, Rose, Hyldahl, and Allen worked together to locate properties, recruit straw borrowers, and obtain mortgage loans using false information about the borrowers’ employment, income, and assets.  Hairston created false W-2s and pay stubs (or earning statements) that were submitted to the lenders to obtain mortgage loans, along with fake bank statements that the co-conspirators obtained from other sources.  The false documents represented that the straw borrowers earned significant salaries working for a company owned by Hairston and Rose.  When lenders attempted to verify the straw borrower’s employment by contacting the company, Hairston, Rose, or their co-conspirators falsely verified the straw borrower’s employment, posing as a human resources manager or other high-level employee of Hairston and Rose’s company. 

In addition to helping obtain fraudulent loans for straw borrowers, Rose and Allen purchased homes for themselves to live in using the same kind of false qualifying information that they used for straw borrowers.  Hairston helped a straw borrower obtain and close a loan for a home based on false qualifying information, and then moved into the straw borrower’s home.  

For certain loans, the co-conspirators induced the mortgage lender and seller to pay a “marketing fee” to companies owned by the co-conspirators that ranged from $58,000 to $75,000 per property.  When the lender questioned the purpose of the “marketing fee” for one such property Hairston created a fake invoice for Hyldahl to submit to the lender that falsely portrayed the fee as having been paid for legitimate services.  When the loans closed, the co-conspirators split the proceeds among themselves.  Hairston, a licensed real estate agent, also received real estate commissions in the range of $7,000 to $9,000 on three of the properties.

The co-conspirators also used the funds obtained as “marketing fees” to pay the straw borrowers kickbacks as much as $15,000 after closing.  In addition, for certain loans, the co-conspirators advanced straw borrowers the down payment which they were supposed to make from their own funds.  Rose provided a cashier’s check which enabled the loan to close and then was paid back plus a small profit out of the “marketing fee” when the loan closed.

On January 22, 2009, federal and state law enforcement agents stopped a loan closing for a straw borrower that was based on false qualifying information and arrested Hyldahl, who was present for the closing.  The closing paperwork for this loan reflected that the co-conspirators were attempting to obtain over $75,000 as a false “marketing fee.”  Hairston was arrested when she arrived at the closing with the straw borrower’s down payment check, which she had obtained from Rose before coming to the closing.

Before the fraud ring was broken, the co-conspirators obtained over $2.7 million in total loans.  Lenders suffered an actual loss to date of $1.1 million on these loans, and may incur additional losses in the future as a result of these loans.  In addition to the properties that three co-defendants moved into, the co-conspirators obtained or attempted to obtain over $220,000 in cash from these closing (i.e., the “marketing fees”) and an additional approximately $23,000 in real estate commissions.

The defendants were sentenced as described below:

• Hairston, 52, of Lawrenceville, Ga., was convicted at trial earlier this year on multiple charges of conspiracy and mail and wire fraud, and has been sentenced to five years, four months in prison to be followed by three years of supervised release, and restitution will be determined.

• Hyldahl, 32, of Marietta, Ga., pleaded guilty to conspiracy and cooperated with the Government, and has been sentenced to one year and one day in prison to be followed by three years of supervised release, and ordered to pay $798,299 in restitution.

• Rose, 54, of Jonesboro, Ga., pleaded guilty to conspiracy and cooperated with the Government, and has been sentenced to three years of probation, the first eight months of which will be served in home confinement, and ordered to pay $339,531 in restitution.

• Allen, 30, of Powder Springs, Ga., pleaded guilty to conspiracy and cooperated with the Government, and has been sentenced to two years of probation, the first 60 days of which are home confinement, and restitution of $192,458.

This case was investigated by the U.S. Postal Inspection Service and the Federal Bureau of Investigation.

Assistant United States Attorneys Doug Gilfillan and Christopher Huber prosecuted the case.

Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. 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 - Robert A. Christy has been sentenced to four years and nine months in prison for stealing investor funds in a currency trading fraud scheme.

“This defendant defrauded victims from across the country and, like many investment fraudsters, he preyed on seniors, retirees, and others simply looking for safe and secure returns,” said United States Attorney Sally Quillian Yates said.  “In the end, his fraud was revealed and he has been held accountable for his actions.” 

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “While it is easy to dismiss such financial fraud cases as being almost benign because of their lack of violence, there is, however, a very real victimization felt and lives are changed forever.  At the end of the day, the sentencing of Mr. Christy to federal prison is really a small token of justice to those many victims who have suffered so much from his criminal activities.”

According to United States Attorney Yates, the charges and other information presented in court: From 2008 until approximately April 2012, Christy portrayed his firm, Crabapple Capital Group LLC, as a reputable and well-established investment firm, claiming that Crabapple profitably traded currency since 2006 and was affiliated with a larger investment firm, which purportedly had over $50 million in assets under management.  Christy advertised a “conservative” currency trading investment strategy that targeted annual returns of approximately eight percent with a low risk of loss.  Christy gave prospective customers marketing literature, including a formal disclosure document and monthly bulletins, which showed from 2006 to 2011: (a) average annual returns ranging from 15 percent to 20 percent; (b) 55 profitable months compared to only 10 unprofitable ones; and (c) the highest monthly losses reaching only negative 0.74 percent. 

This performance history was fraudulent however, as Christy's actual trading records show consistent and significant losses from 2006 to 2011.  Christy's claim that Crabapple was affiliated with a larger investment firm with $50 million in assets was also false.  Christy recruited the majority of his investors during trade shows in Las Vegas, Nev. and Orlando, Fla., and through his affiliation with Grove City College, a Christian liberal arts college in Grove City, Penn.  Christy, who is an alumnus of Grove City College, marketed himself as a Christian investor and solicited funds from Grove City College students, students’ families, and a faculty member.

To perpetuate his fraud scheme, Christy prepared and distributed false monthly account statements that fraudulently showed investors earning monthly profits on their investments, even in months when Christy was losing money in all his firm's trading accounts.  Christy defrauded at least 20 investors who invested over $1.4 million dollars.  Instead of using investors’ money to trade currency, Christy used it to pay for, among other things, travel, jewelry, restaurant meals, and other personal expenses, and made payments to members of his own family.  In total, Christy stole over $1 million dollars.

Christy, 58, of Alpharetta, Ga., 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 $1,148,234.81.  Christy was convicted of wire fraud on July 24, 2014, after he pleaded guilty.

This case was investigated by the Federal Bureau of Investigation.

Assistant United States Attorney Jeffrey Brown prosecuted the case.

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

NEWNAN, Ga. - Michael E. Benton has been sentenced for theft of public funds for unlawfully purchasing vouchers of the Georgia Women, Infants and Children (WIC) program in exchange for cash. 

“As an authorized vendor in the WIC program, this defendant made a commitment to sell nutritional foods to low-income mothers and children,” said United States Attorney Sally Quillian Yates.  “Instead he repeatedly exchanged food vouchers for cash, undermining an important program designed to protect the health of pregnant women and young children.”

Karen Citizen-Wilcox, SAC, United States Department of Agriculture, Office of the Inspector General, stated, “Individuals such as Michael Benton continue to think that the fraud perpetrated by them against Agriculture programs, such as the EBT and WIC program, will go unnoticed and unprosecuted.  USDA-OIG is committed to working with its partners at the Georgia Department of Human Resources, local police departments like the Griffin Police Department, and DOJ to ensure that individuals like Mr. Benton continue to be prosecuted and sentenced to prison for defrauding both the programs meant to help people and the tax payers who fund such programs.”

According to United States Attorney Yates, the charges and other information presented in court: Benton owned and operated a small food store, “Healthy Oasis,” in Griffin, Ga., from August 2008 until December 2010.  Healthy Oasis became an authorized Georgia WIC vendor in March 2009.  Georgia WIC is a program that provides supplemental foods to low-income women who are pregnant, nursing, or postpartum, and to infants and children up to the age of five who are found to be nutritionally at risk.  The U.S. Department of Agriculture provides federal funds to the state of Georgia for the WIC program.  WIC program participants receive paper vouchers which are to be used exclusively for the purchase of authorized food items from retail vendors.  Vendors can only accept WIC vouchers in exchange for the purchase of authorized food items.  Vendors then deposit the vouchers into their bank accounts, where they are processed similarly to checks.

An investigation of Healthy Oasis was initiated in January 2010 after the Griffin Police Department received a complaint that WIC vouchers were being purchased in exchange for cash at the store.  During an undercover investigation conducted from January through September 2010, Michael Benton and one of his employees, acting at Benton’s direction, purchased approximately 117 WIC vouchers in exchange for cash paid to the undercover agents, who were posing as WIC program recipients.  Benton deposited the vouchers into the business bank account for Healthy Oasis.  Georgia WIC cancelled Healthy Oasis’s vendor authorization in September 2010.  Analysis of Georgia WIC records and the Healthy Oasis bank account, which Benton exclusively controlled, showed that Healthy Oasis redeemed hundreds of thousands of dollars more in WIC vouchers than other WIC-authorized vendor stores of comparable size in the same geographic area during the same period of time that Healthy Oasis was in operation.      

Benton, 56, of Atlanta, Ga., was sentenced today by United States District Judge Timothy C. Batten, Sr., to three years and five months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $1,422,902.70 to the Georgia WIC program.  Benton was convicted on these charges on June 6, 2014, after he pleaded guilty.

This case was investigated by the United States Department of Agriculture, Office of the Inspector General, with assistance from the Griffin Police Department.

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

ATLANTA - Remberto Argueta, a/k/a Pitufo has been sentenced to two concurrent life sentences for his role in a gang-related murder and attempted murders in the Atlanta metropolitan area.

“Argueta helped MS-13 live up to its reputation as a ruthless, violent gang that spread fear throughout the community,” said United States Attorney Sally Quillian Yates. “He displayed a callous disregard for human life and has fittingly earned his place behind prison walls for the remainder of his life.”

“Nearly two dozen MS-13 members have been convicted as a part of this investigation, wiping out the leaders and top members of an international street gang that spread violence and fear throughout the Atlanta area,” said Assistant Attorney General Caldwell. “Sentences like the one handed down today help us to put MS-13 out of business in Atlanta and throughout the United States.”

“The world will be a safer place with this defendant behind bars for the rest of his life,” said Special Agent in Charge Brock D. Nicholson, ICE Homeland Security Investigations (HSI) in Atlanta. “HSI is strongly committed to working with our partners at the FBI and local law enforcement agencies to identify and arrest the dangerous transnational gang members victimizing our communities.”    

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “This sentencing of a hardened MS-13 gang member is one of a series of convictions and sentences of members of this gang known for their violence in the northern metro Atlanta area.  While these dangerous gang members have now been neutralized, the FBI will continue to dedicate substantial investigative resources in this area to ensure that the void now created will not be filled by additional gang members or other gangs.”

According to United States Attorney Yates, the charges and other information presented in court: MS-13 is an international gang that has operated in the Atlanta, Ga., area since at least 2005. The gang members staked out Gwinnett and DeKalb Counties as their home territory and used violence to defend their territory, attack rival gang members and commit armed robberies. The evidence presented at trial showed that Argueta, along with other members of MS-13, planned to rob Arpolonio Rios-Jarquin, a suspected drug dealer, at a hotel in April 2007. When Rios-Jarquin turned out to have his own gun, Argueta and his fellow MS-13 members engaged in a shootout with Rios-Jarquin that spilled outside the hotel room. Rios-Jarquin died from the multiple gunshot wounds inflicted on him.  Surveillance video showed one of the MS-13 members stopped to pick up Rios-Jarquin’s weapon, which he later showed off as a trophy.

Additional evidence showed that in October 2007, Argueta and several other MS-13 members were at an apartment complex in Gwinnett County when Argueta spotted suspected rival gang members. He approached them and asked them who they “claimed”—that is, what gang they belonged to. When Christian Escobar responded that he and his friend, Jose Garcia-Barajas, were members of the rival 18th Street gang, Argueta said, “You’re going to die.” Argueta pulled out a handgun and started chasing and shooting at Escobar and Garcia-Barajas. He shot Escobar in the back and Garcia-Barajas in the hip and arm. While shooting at them, Argueta also fired shots into the apartments of nearby residents. An elderly woman testified that one of Argueta’s bullets hit the headrest of an armchair that she had been sitting in just a few minutes earlier.

Argueta, 27, of Lilburn, Ga., has been sentenced to two concurrent life sentences in prison. On November 22, 2013, after a trial lasting three weeks, a jury found Argueta guilty of RICO conspiracy involving murder, violent crime in aid of racketeering involving murder, and using a firearm to commit a crime of violence. Parole has been abolished in the federal system.

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

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 – Heriberto Almonte-Reyes, the last of nineteen defendants in a large-scale money laundering organization, has been sentenced for his part in a conspiracy that laundered drug proceeds from Mexico, Australia, England, Spain, the Dominican Republic, Jamaica, the Bahamas, Guatemala, Miami, New York, and Puerto Rico.

“International drug trafficking is a sophisticated business, and money launderers provide the financial lifeline for the cartels,” said United States Attorney Sally Quillian Yates.  “These defendants, most of whom were extradited from Columbia, were responsible for laundering tens of millions of dollars of drug money.”

John S. Comer, the Acting Special Agent in Charge of the DEA Atlanta Field Division commented, “Drug traffickers utilize a multitude of sophisticated methods in which to hide their assets, but one of DEA’s highest priorities is to relentlessly pursue and destroy these drug trafficking and money laundering organizations. This global money laundering investigation was a success because of the local, regional, national, and foreign law enforcement partnerships and our commitment to bring this organization to justice in the United States.

According to United States Attorney Yates, the charges and other information presented in court:  In 2005, the DEA infiltrated an international money laundering organization through the use of a confidential informant. Targets of the investigation asked the informant to assist them in laundering drug proceeds across the globe.  Undercover DEA agents and local agents picked up the drug money in Mexico, Australia, England, Spain, the Dominican Republic, Jamaica, the Bahamas, Guatemala, as well as Miami, Fla., New York and Puerto Rico. The drug money, totaling over $11 million was then deposited into undercover bank accounts in the Atlanta, Ga., area.

The investigation resulted in the seizure of over $15 million and resulted in the prosecution of high-level targets such as Severo Escobar Garzon, IV, who is reported to be the nephew of Pablo Escobar. Most of the defendants were extradited from Colombia to face federal charges, and two were extradited from the Dominican Republic and England.  All of the defendants pleaded guilty to conspiring to launder drug proceeds.  All of the defendants are expected to be deported to their country of origin after the completion of their sentences. 

The defendants and their sentences are as follows:

• Victor Andres Murcia-Reyes, 40, of Bogota, Colombia, was sentenced to ten years in prison, on September 5, 2014.

• Luis Carlos Rodriguez-Vaca, 50, of Bogota, Colombia, was sentenced to nine years in prison, on December 16, 2010.

• Dario Vicente Caballero-Caballero, 51, of Barranquilla, Colombia, was sentenced to eight years, four months in prison, on April 16, 2014.

• Carlos Mario Becerra-Restrepo, 52, of Medellin, Colombia, was sentenced to eight years, four months in prison, on March 6, 2014.

• Alfredo Betancourt-Munoz, 66, of Bogota, Colombia, was sentenced to eight years in prison, on October 27, 2011.

• Heriberto Almonte-Reyes, 41, of Puerto Plata, Dominican Republic, was sentenced to seven years, three months in prison, on October 17, 2014.

• Severo Escobar Garzon, IV, 55, of Bogota, Colombia, was sentenced to six years, five months in prison, on January 12, 2012.

• Fernando Martinez-Borreaz, 49, of Bogota, Colombia, was sentenced to six years, four months in prison, on April 26, 2013.

• Juan Cenen Avila-Pena, 51, of Bogota, Colombia, was sentenced to six years in prison, on April 23, 2010.

• Carlos Mario Torres, 47, of Bogota, Colombia, was sentenced to four years, ten months in prison, on December 1, 2011.

• Oscar Eduardo Galvis-Pena, 41, of Bogota, Colombia, was sentenced to four years, five months in prison, on December 12, 2013.

• Hernando Valencia Munoz, 61, of Bogota, Colombia, was sentenced to four years, four months in prison, on January 13, 2012.

• Fabio Bravo-Russy, 59, of Bogota, Colombia, was sentenced to four years, four months in prison, on June 1, 2011. 

• Ampara Balaquera-Zarta, 53, of Bogota, Colombia, was sentenced to four years in prison, on November 29, 2011.

• Alexander Salazar-Duarte, 43, of London, England, was sentenced to three years, four months in prison, on December 1, 2011. 

• Jaime Moreno-Bravo, 70, of Bogota, Colombia, was sentenced to three years in prison, on July 22, 2011.

• Jersson Ramirez-Huertas, 38, of Bogota, Colombia, was sentenced to two years, six months in prison, on May 26, 2011.

• Martha Camacho-Roa, 48, of Bogota, Colombia, was sentenced to one year, eleven months in prison, on January 6, 2011.

This case was investigated by the Drug Enforcement Administration.  Valuable assistance was provided by the Internal Revenue Service, the United States Postal Service, United States Customs and Border Patrol, international law enforcement partners, and the Doraville, Ga., Duluth, Ga., and Lawrenceville, Ga., Police Departments.

Assistant United States Attorneys Sandra Strippoli, Scott Ferber, and Jeffrey Viscomi 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 - Sergei Nicolaevich Tšurikov has been sentenced to eleven years in prison for conspiracy to commit wire fraud and computer intrusion for his involvement in an elaborate scheme which stole over $9.4 million from a credit card processor.

“A leader of one of the most sophisticated cybercrime rings in the world has been brought to justice and sentenced,” said United States Attorney Sally Quillian Yates. “In just one day in 2008, an American credit card processor was hacked in perhaps one of the most sophisticated and organized computer fraud attacks ever conducted.  Almost exactly one year later, the leaders of this attack were charged.  This prosecution was successful because of the efforts of the victim, and unprecedented cooperation from various law enforcement agencies worldwide.”

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

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

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

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

Tšurikov, 30, of Tallinn, Estonia was sentenced by United States District Judge Steve C. Jones to eleven years, three months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $8,400,000.  Tšurikov pleaded guilty to these charges on September 11, 2012.

This case was investigated by Special Agents of the Federal Bureau of Investigation.  Assistance was provided by international law enforcement partners. The United States Secret Service also participated in the investigation. RBS World Pay immediately reported the crime and has substantially assisted in the investigation.

Assistant United States Attorneys Lawrence R. Sommerfeld and Kamal Ghali prosecuted the case.  Assistance was provided by the Justice Department Criminal Division’s Computer Crime and Intellectual Property Section and the Office of International Affairs.         

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. - Damian Alarcon-Morales has been arraigned for fraudulently using the identities of Mexican nationals to obtain income tax refunds.  Alarcon-Morales was indicted by a federal grand jury on October 14, 2014.

“This defendant is charged with engaging in a cross-border scheme to defraud the tax system of over $700,000 in fraudulent refunds,” said United States Attorney Sally Quillian Yates.  “Attempts to profit from fraudulent tax returns are increasing, and we will continue to aggressively investigate and prosecute these cases.” 

“Identity theft is a despicable crime that victimizes honest taxpayers and causes immense hardship,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “Individuals who devise schemes to steal public money face federal prosecution and federal prison.”

According to United States Attorney Yates, the charges, and other information presented in court: On September 15, 2014, Alarcon-Morales was found in possession of federal income tax returns, Internal Revenue Service correspondence, Mexican identification documents, and handwritten notes.  The documents contained personal identifiers that corresponded to over 200 individuals, most of whom are Mexican nationals.  In most cases, the Mexican identification documents were used to obtain Individual Taxpayer Identification Numbers (“ITIN”) which are assigned to foreign nationals and others not eligible for Social Security Numbers, but who are required to file United States tax returns. 

The identifiers in Alarcon-Morales’ possession were linked to at least 175 fraudulent tax returns filed between 2011 and 2014.  Based upon these returns, the IRS issued over $700,000 in tax refund checks, which were dispersed to Alarcon-Morales and others.  This conduct is commonly referred to as Stolen Identity Refund Fraud.

Damian Alarcon-Morales, 31, of Newnan, Ga., was arraigned before United States Magistrate Judge Justin S. Anand.

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

This case is being investigated by the Internal Revenue Service - Criminal Investigation.  If you believe you may be a victim of tax return-related identity theft please contact the IRS Identity Protection Specialized Unit at 800-908-4490, extension 245 (Mon. - Fri., 7 a.m. - 7 p.m. local time).

Assistant United States Attorney Shanya J. Dingle is prosecuting the case.

Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. 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 Newnan Division is http://www.justice.gov/usao/gan/.

ATLANTA – Billy Gene McCorkle, Jr., a registered sex offender, has been sentenced to 17 years in federal prison for distributing child pornography.

“McCorkle’s choice to continue to exploit children, even as a convicted sex offender has resulted in his exit from society” said United States Attorney Sally Quillian Yates.  “Recidivist offenders like this defendant prey on the most innocent in our society who depend on us to protect them.  We will continue to prosecute those who traffic in these horrific images and exhibit such blatant disregard for the welfare of young children.”

“The defendant’s repeated sexual exploitation of children is an egregious crime and well deserves this lengthy sentence,” said Brock D. Nicholson, Special Agent in Charge of ICE Homeland Security Investigations in Atlanta. “The distribution of child pornography continues the exploitation of its victims and creates a demand for the further abuse of other children. HSI is grateful to have such a strong partner in the U.S. Attorney’s Office for the Northern District of Georgia to aggressively investigate and prosecute the perpetrators of these vile crimes.”

According to United States Attorney Yates, the charges, and other information presented in court:  On November 4, 2013, a special agent with the Department of Homeland Security Investigations (HSI) discovered that McCorkle had accessed a website used to exchange images of child pornography.  On November 5, 2013, the agent, acting in an undercover capacity, sent an email to McCorkle, based on his profile information.  During the email exchange that followed, McCorkle offered to, and did, send child pornography to the undercover agent depicting a young, nude girl who appeared to be about eight years old.  The subsequent investigation revealed multiple occasions that McCorkle sent and received files containing child pornography.

On December 13, 2013, HSI special agents arrested McCorkle for distributing child pornography, and related offenses.  At the time of his arrest, federal agents also seized a cellular telephone from McCorkle.   When agents searched McCorkle’s telephone pursuant to a search warrant, they found more than 13,000 images of child pornography.  Agents also learned that McCorkle was a registered sex offender, having been previously convicted of child molestation on February 22, 2006.

McCorkle, 46, of Canton, Ga., was sentenced to 17 years in federal prison, to be followed by lifetime supervised release.  McCorkle pleaded guilty on May 8, 2014.

The case was investigated by the Department of Homeland Security.

Assistant United States Attorney Richard S. Moultrie, Jr. prosecuted the case.

This case is a 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 - The United States Attorney’s Office announced that it has reached a settlement with Medical Business Service, Inc. (MBS), which agreed to pay $1.95 million to settle claims that it violated the False Claims Act by fraudulently changing diagnosis codes on claims to Medicare and Medicaid, in order to get the rejected claims paid on behalf of radiologists.  MBS was located in Florida, with an office in Duluth, Ga. 
 
“Billing companies provide a key check-point to combat medical billing fraud.  Consequently, they will be examined with the same scrutiny as healthcare providers,” said United States Attorney Sally Quillian Yates. 

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Federal funds designated for use through the Medicare and Medicaid programs are much needed but limited.  When those funds are not used as intended, the system does not work as intended and people suffer.  The FBI will continue to work with its various law enforcement partners in dedicating significant investigative resources toward ensuring that these federally funded healthcare based programs are not abused.”

“The health care providers who contracted with MBS placed their trust in the company to correctly process claims and not submit fraudulent information to the Medicare and Medicaid programs,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta.  “The lack of compliance and oversight by MBS placed all these providers at risk.  Billing services such as MBS have no less of a duty to ensure truthful information on claims than do the providers who use these services.”

The civil settlement resolves the United States’ investigation into MBS’s billing practices.  The United States alleges that MBS improperly coded and billed claims by radiologists that were submitted to the Medicare and Medicaid programs.  Medicare and Medicaid issue guidance stating that they will not pay for certain procedures given to patients with specific diagnoses.  Medicare and Medicaid will reject claims for payment that combine those procedures and diagnoses.  MBS allegedly changed the diagnosis codes on previously rejected claims to avoid those restrictions in order to have the claims paid.  The settlement covers a three year period, 2008-2010, during which the conduct allegedly occurred.

This civil settlement resolves a lawsuit filed by Katlisa N. Vaughn under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the United States and share in any recovery obtained.   The case, pending in the Northern District of Georgia, is filed under United States of America, State of Florida, State of Georgia, State of New York, State of Tennessee, and State of Texas ex rel. Katlisa N. Vaughn v. Medical Business Service, Inc., Civ. No. 1:10-CV-2953.  The Federal government will receive $1.917 million from the settlement, while Florida, Georgia, New York, and Texas will split the remainder of the settlement.   Ms. Vaughn will receive a share of the settlement payment that resolves the qui tam suit that she filed.  The claims settled in the civil settlement are allegations only, and there has been no determination of liability.

This resolution is part of the government’s emphasis on combating health care fraud under the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services, in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover more than $14 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $20 billion.

This case was investigated by Special Agents of the Federal Bureau of Investigation and Health & Human Services, Office of Inspector General. 

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

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

GAINESVILLE, Ga. -- Jonathan Lee Whitmire has been sentenced to the statutory maximum sentence of 20 years in federal prison for distributing child pornography.

“This defendant amassed a large collection of photos and videos depicting the sexual assault of very young children,” said United States Attorney Sally Quillian Yates.  “We will continue to pursue significant sentences for those who trade in the victimization of the most innocent and vulnerable among us.”    

“As long as there are predators in our society who traffic in the rape of children for their perverse desires, there will be HSI special agents a few steps behind them working tirelessly to seek justice for the victims of this pernicious crime,” said Brock D. Nicholson, Special Agent in Charge of ICE Homeland Security Investigations in Atlanta. “We will follow every lead, we will pull every thread, and we simply will not stop until every depraved degenerate who distributes this filth understands we will be knocking at their door the minute they hit ‘send.’”

According to United States Attorney Yates, the criminal indictment, and information presented in court:  In September 2013, Homeland Security Investigations (HSI) executed a search warrant in Cheyenne, Wyo., at the home of an individual using an international website to exchange child pornography.  Investigators found that the Wyoming subject was also trading child pornography with numerous individuals using electronic mail.  Based on a search of the Wyoming subject’s email accounts, HSI identified Jonathan Lee Whitmire as an individual who traded child pornography with the Wyoming subject.  Subsequent searches of Whitmire’s email accounts showed Whitmire traded sexually explicit images of young children with a substantial number of other individuals using various email accounts.

In January 2014, a search warrant was executed at Whitmire’s home in Auburn, Ga.  A forensic examination of electronic media found in Whitmire’s home showed that he had a large collection of images and videos of young children being sexually assaulted.  The investigation also revealed that Whitmire molested at least two young girls.

Whitmire, 36, of Auburn, Ga., was sentenced by United States District Judge William C. O’Kelley to 20 years in prison to be followed by 20 years of supervised release.  Whitmire was also ordered to pay a $3,000.00 fine and a $100 special assessment.  The defendant will be required to register as a sex offender when he is released from prison.

Whitmire is charged with two counts of child molestation and two counts of aggravated sexual battery in Barrow County, Ga.

This case was investigated by Homeland Security Investigations, the Barrow County Sheriff’s Office, and the Barrow County District Attorney’s Office.

Assistant United States Attorney William McKinnon prosecuted the case.

This case is being brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute individuals who sexually exploit children and to identify and rescue victims.

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 www.justice.gov/usao/gan.

ATLANTA - Ephren Taylor, II, has pleaded guilty to conspiracy to commit mail and wire fraud by defrauding hundreds of victims of their retirement savings.

“Taylor’s guilty plea brings a measure of justice for the hundreds of his victims, including those hard-working Georgians who lost their life savings to his criminal scheme,” said United States Attorney Sally Quillian Yates.

“Mr. Taylor exploited numerous investors by perpetrating a scheme that was based entirely on lies,” stated Special Agent in Charge Veronica Hyman-Pillot, IRS Criminal Investigation. “Mr. Taylor’s guilty plea today is an opportunity for him to admit to the deception and face the consequences of his actions.”

“The United States Secret Service is aggressive in our investigative mission to arrest those who commit financial crimes.  In this case, we were particularly resolved to bring to justice a criminal who chose to take advantage of unsuspecting members of the public in environments of reverence and trust,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.

According to United States Attorney Yates, the charges and other information presented in court: From at least April 2009 through October 2010, Ephren Taylor, II, then CEO of City Capital Corporation, and his co-defendant Wendy Connor, the former COO of City Capital Corporation, participated in a conspiracy to defraud investors.  In pleading guilty, Taylor acknowledged that he defrauded hundreds of investors of more than $7 million nationwide.  In a separate hearing, co-defendant Wendy Connor also pleaded guilty to interstate transportation of money taken by fraud.

As part of the scheme, Taylor traveled around the country on a “Building Wealth Tour,” where he gave wealth management seminars to church congregations.  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 included investing in promissory notes, where the funds invested would be used to support small businesses, such as laundries, juice bars, and gas stations.  Taylor falsely represented the revenues and returns for these businesses knowing that they were not profitable.

Taylor also pushed an investment in sweepstakes machines.  Sweepstakes machines are computers loaded with various games that allow players to win cash prizes.  Taylor published offering materials that falsely claimed the average sweepstakes machine would generate 300% investor returns.  He also stated that the sweepstakes machine investments were 100% risk free.

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

The sentencing for Ephren Taylor, 32, of Overland Park, Kan., is scheduled for December 18, 2014, at 2:30 p.m.  Wendy Connor, 45, of  Raleigh, N.C., is scheduled to be sentenced on December 18, 2014, at 9:30 a.m.

This case is being investigated by the Internal Revenue Service Criminal Investigation and the United States Secret Service.

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

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the 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 - Forensic accountant and certified fraud examiner Howard Bloomberg has pleaded guilty to willfully failing to disclose to the U.S. Treasury Department a foreign bank account he controlled in Switzerland.

“The era of hiding money in secret Swiss bank accounts is over,” said United States Attorney Sally Quillian Yates.  “Citizens should understand that failing to abide by their banking disclosure obligations to the U.S. Treasury Department could mean criminal prosecution.”

“The Internal Revenue Service and the U.S. Attorney’s office will continue to pursue those who attempt to fraudulently obstruct or impede our Nation's tax system.” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS-Criminal Investigation.

According to United States Attorney Yates, the charges and other information presented in court:  From 1997 to 2008, Bloomberg 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 2001, Bloomberg’s foreign bank account with UBS had a high balance of approximately $930,000.

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 is due to be filed by June 30 of the following year.  Bloomberg pleaded guilty to willfully failing to file a FBAR for the 2008 year, even though that same year he wired over $540,000 from his Swiss UBS bank account to a United States bank account that he controlled.

Sentencing for Bloomberg, 55, of Atlanta, Ga., is scheduled for December 19, 2014 at 10:30 a.m. before United States District Judge Thomas W. Thrash.

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

Assistant United States Attorney Steven D. Grimberg 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 - Laura Romina Delgado has been sentenced for filing false tax returns that claimed over $3.6 million in fraudulent refunds.

“Honest, hard-working taxpayers who file their tax returns and pay their fair share of taxes should be assured that those who try to profit by filing false returns will be prosecuted to the fullest extent of the law,” said United States Attorney Sally Quillian Yates.

“The sole objective of Ms. Delgado’s scheme was to unjustly enrich herself at the expense of the IRS,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “We will continue to pursue individuals like Delgado, who abuse positions of trust to commit crimes and ruin the lives of innocent citizens by misusing their identities.”

According to United States Attorney Yates, the charges, and other information presented in court:  Delgado operated a business named Servicios Hispanos in Norcross, Ga., which offered various financial and legal services, mainly to members of the Hispanic community.  Between January 2013 and May 2014, Delgado electronically filed approximately 1,300 federal income tax returns, claiming over $3.6 million in fraudulent refunds.

Many of the fraudulent returns filed by Delgado were in the names of individuals who were not documented to work in the United States.  In some instances, she assisted these individuals in obtaining Individual Tax Identification Numbers (ITINs) from the IRS to facilitate the fraud.  Delgado also submitted false and misleading W-2 forms with the returns she filed and assisted in negotiating U.S. Treasury checks representing the proceeds of the fraud.  She also notarized and filed fraudulent ITIN applications.  

Delgado, 33, of Lawrenceville, Ga., was sentenced to four years, three months in prison, to be followed by three years of supervised release.  She was ordered to pay restitution in the amount of $2,148,440, and a special assessment of $100.  Delgado was convicted on these charges on July 7, 2014, after she pleaded guilty to a criminal indictment charging her with wire fraud.

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

Assistant United States Attorneys J. Russell Phillips and Michael 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 - Artavius Brown has been sentenced to 32 years in prison for his use of a firearm during the commission of multiple armed robberies. 

“Brown terrorized our community and put the lives of many innocent people at risk,” said United States Attorney Sally Quillian Yates.  “This crime spree was brought to an end through the coordinated efforts of our state and federal law enforcement partners.  Violent criminals should understand that in our district, significant federal penalties await them.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s sentencing of Mr. Brown to thirty two years in  federal prison for his extensive and violent crime spree illustrates that there is no tolerance for those who show a total and repeated disregard for law and order.  Because of the lengthy sentences available for these types of offenders in the federal system and also noting that there is no parole in the federal system, it is important for law enforcement to consider federal prosecution in these types of cases.”

According to United States Attorney Yates, the charges, and other information presented in court:  During a five-month crime spree, that spanned four counties in the Atlanta, Ga., area, Brown committed 24 armed robberies of Family Dollar and Dollar General stores and one armed robbery of a PNC Bank – often committing multiple robberies on the same day:

Date

Business

Address

2/18/2013

Family Dollar

3855 Lawrenceville Hwy., Tucker, Ga.

2/21/2013

Family Dollar

319 N. Stone Mountain-Lithonia Road, Stone Mountain, Ga.

2/25/2013

Dollar General

6633 Covington Highway, Lithonia, Ga.

2/25/2013

Family Dollar

4787 Covington Highway, Decatur, Ga.

3/4/2013

Dollar General

5570 Lawrenceville Highway, Lilburn, Ga.

5/1/2013

Family Dollar

3590 Panola Road, Lithonia, Ga.

5/1/2013

Dollar General

2552 Wesley Chapel Road, Decatur, Ga.

5/9/2013

Family Dollar

7184 Rockbridge Rd., Stone Mountain, Ga.

5/9/2013

Dollar General

4312 Chamblee Tucker Road, Atlanta, Ga.

5/9/2013

Family Dollar

4624 Jimmy Carter Blvd., Norcross, Ga.

5/14/2013

Dollar General

4351 Hugh Howell Road, Tucker, Ga.

5/17/2013

Dollar General

5610 Singleton Road, Norcross, Ga.

5/23/2013

Dollar General

3900 Glenwood Road, Decatur, Ga.

5/26/2013

Family Dollar

3500 Martin Luther King Dr., Atlanta, Ga.

5/28/2013

Family Dollar

1400 Moreland Avenue, Atlanta, Ga.

5/29/2013

Family Dollar

5403 Covington Highway, Decatur, Ga.

5/30/2013

Family Dollar

1455 Pleasant Hill Rd., Lawrenceville, Ga.

5/31/2013

Dollar General

2846 Lavista Road, Decatur, Ga.

5/31/2013

Dollar General

1500 Pleasant Hill Road, Duluth, Ga.

6/2/2013

Family Dollar

807 Cascade Road, Atlanta, Ga.

6/6/2013

Family Dollar

5279 Lawrenceville Highway, Lilburn, Ga.

6/6/2013

Family Dollar

6928 Main Street, Lithonia, Ga.

6/11/2013

Dollar General

1910 Jodeco Road, Stockbridge, Ga.

6/12/2013

Dollar General

1005 Brentwood Parkway, Stockbridge, Ga.

6/21/2013

PNC Bank

2355 Main Street, Tucker, Ga.

Brown, 24, of Atlanta, Ga., was sentenced by U.S. District Judge William S. Duffey, Jr., to 32 years in prison to be followed by five years of supervised release.  He was ordered to pay restitution in the amount of $4,509.35.  

Brown was convicted of these charges on March 19, 2014, after pleading guilty to a criminal information that charged him with one count of brandishing a firearm during a crime of violence (a Hobbs Act robbery) that occurred on May 26, 2013, and one count of brandishing a firearm during a crime of violence (armed bank robbery) that occurred on June 21, 2013.  Conviction on the first count carried a mandatory minimum prison term of seven years, and conviction on the second count carried a mandatory minimum prison term of 25 years, to run consecutive to the seven year term of imprisonment.

This case was investigated by the Federal Bureau of Investigation, the DeKalb County Police Department, the Atlanta Police Department, the Gwinnett County Police Department, the City of Lithonia Police Department, and the City of Lilburn Police Department.

Assistant United States Attorneys Angela M. Garland and John S. Ghose prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the 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 - Steven E. Thompson has been sentenced to 25 years for sex trafficking of a minor by threats of force, fraud and coercion, conspiring to do the same, and inducing adult women to travel interstate for prostitution.  His accomplice, Tierra Waters, has been sentenced to eight years for conspiracy to engage in sex trafficking of a minor.

“These defendants exploited a 17-year-old girl from West Africa who desperately needed a place to live,” said United States Attorney Sally Quillian Yates.  “The pair coerced the minor into engaging in prostitution at hotels and residences in Atlanta.  Sex trafficking has no place in our society.  And those who exploit vulnerable children in this way will face the kind of lengthy prison sentences that the defendants justly received today.”

“Like many of the young women we see exploited by sex traffickers in our investigations, this child was vulnerable and in need of help when she fell victim to this predator,” said Brock D. Nicholson, special agent in charge of ICE Homeland Security Investigations in Atlanta. “Make no mistake, it was no chance encounter that brought this child into contact with the defendants. Sex traffickers are constantly on the lookout for vulnerable women and children they can exploit for their so-called ‘escort’ businesses. As these defendants have learned, law enforcement agencies like HSI and GBI are constantly on the lookout for these abusive predators and will hold them accountable for their heartless crimes.”

“Protecting children is a top priority for the GBI.  We will continue to work in partnership with the U.S. Attorney’s Office to identify, investigate, and assist in the prosecution of individuals who have exploited children.  It is imperative for law enforcement to protect those who cannot protect themselves,” said Vernon Keenan, Director, Georgia Bureau of Investigation.

According to United States Attorney Yates, the charges and other information presented in court: Between April and June 2011, Thompson, a convicted felon who used the nickname “Silk,” advertised a 17-year-old refugee from Sierra Leone, West Africa for prostitution on the website Backpage.com, falsely listing her as ages 19 and 20 years.  When the juvenile met Thompson and Waters, she was living in the United States without her parents; relying on relatives and friends for housing and support; and frequently homeless.   In February 2011, Clayton County, Ga., Juvenile Court declared her a deprived child and placed her in a temporary shelter.  Her grandmother took custody of her, but soon left the country, leaving the minor to fend for herself. 

In April 2011, Thompson and Waters offered to allow the minor to live with them while she waited to enter the Job Corps.  After living with Thompson and Waters only a few weeks, the defendants told the minor that she must have sex with men to earn money or leave their condominium.  During this time, the juvenile saw Thompson verbally and physically abuse Waters, who worked as a prostitute for Thompson.  Thompson also forced the minor to have sex with him on more than one occasion.  Thompson and Waters transported the minor to the various locations where they coerced her into engaging in prostitution, and kept all her earnings.  Thompson and Waters also angrily confronted the juvenile after discovering that she was avoiding calls from customers responding to the Backpage.com ads. 

A witness who met the minor through the Backpage.com ads agreed to cooperate in the investigation.  According to the witness, he was initially unaware that the girl was underage.  But after the witness engaged in a commercial sex act with the minor, he began receiving threatening text messages from Thompson.  In the text messages, Thompson disclosed that the girl was a minor and attempted to extort money from the witness.    

In addition to the minor victim, Thompson also advertised two adult women for prostitution in Internet ads: A.M. from Washington, and F.F. from Alabama.  Thompson met the women on the Internet and persuaded them to travel to Atlanta to work as prostitutes for him.  Between March and August 2011, Thompson induced both women to travel interstate for that purpose.

Thompson, 44, of Atlanta, Ga., a repeat offender, having been previously convicted of federal offenses involving counterfeiting currency and being a felon in possession of a firearm, was sentenced to 25 years in federal prison, to be followed by ten years of supervised release.  Thompson was convicted on June 25, 2014, of conspiracy to commit, and commission of, sex trafficking of a minor, and inducing adult women to travel interstate for prostitution, following a jury trial.  Thompson must register as sex offender as a condition of his supervised release.

Waters, 30, of Atlanta, Ga., pleaded guilty on July 25, 2013, to conspiracy to commit sex trafficking of a minor and was sentenced to eight years in federal prison, to be followed by five years of supervised release. 

This case was investigated by Homeland Security Investigations-Immigration and Customs Enforcement, and the Georgia Bureau of Investigation.

Assistant United States Attorneys Susan Coppedge and Leslie J. Abrams 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 - Shantel Bowens, Debbie Bailey, and Babatunde “Babs” Abass have been sentenced for stealing funds from the federal Housing Choice Voucher Program, known as “Section 8,” which provides rental assistance to low-income families.

“By stealing funds from the Section 8 program these defendants deprived needy families of suitable, safe housing,” said United States Attorney Sally Quillian Yates.  “We will continue to aggressively prosecute government program fraud and criminals who steal from those most in need.”

Nadine E. Gurley, Special Agent in Charge for the U. S. Department of Housing and Urban Development, Office of Inspector General said: “HUD’s Office of Inspector General is dedicated to protecting taxpayers’ dollars and ensuring HUD programs are free from fraud, waste and abuse. This partnership between the U.S. Attorney’s Office and HUD’s Office of Inspector General has helped demonstrate to our recipients that those who seek to unlawfully profit by defrauding HUD programs will be vigorously prosecuted.”

According to United States Attorney Yates, the charges and other information presented in court: Bowens and Bailey worked for the City of Marietta’s Housing Choice Voucher Program, which oversees tenant and landlord participation in the Section 8 program.  HUD provides the program with over $4 million per year in Section 8 funding.  Abass and a fourth defendant, Tunji “Chris” Imoukhuede, were enrolled as landlords in the program. 

In 2011, Bowens began identifying former Section 8 tenants, and reactivating their accounts, which had been closed.  In particular, Bowens and Bailey selected tenants who were eligible for the largest Section 8 payments, based upon their employment and family size.  Bowens altered computer records to link these tenants to Abass and Imoukhuede.  The falsified records then indicated that the former tenants were now residing in properties owned by Abass and Imoukhuede.  As a result, the two landlords began receiving fraudulent Section 8 payments.  Abass and Imoukhuede kept 40% of the funds for themselves, and withdrew the remaining 60% in cash.  In turn, they gave the cash to Bailey, who split it with Bowens. 

During the scheme, which took place from January 2011 through June 2013, the four defendants obtained over $230,000 as a result of their fraudulent actions.  In addition, from January 2010 through June 2013, Bowens lived rent-free in Section 8 housing under false pretenses.  She falsified computer records so that a rental subsidy would be paid monthly to her own landlord, purportedly on behalf of a former tenant in the program.  Over $40,000 in Section 8 funds went to Bowens’ own housing.

Bowens, 43, of Atlanta, Ga., has been sentenced to two years and two months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $275,871.  Bowens was convicted on these charges on July 17, 2014, after she pleaded guilty. 

Bailey, 41, of Rome, Ga., was sentenced on August 18, 2014, to one year and two months in prison to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $234,977.  She pleaded guilty to these charges on May 27, 2014. 

Abass, 48, of Mableton, Ga., was sentenced to ten months in prison to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $80,349.  He was convicted on these charges on June 11, 2014, after he pleaded guilty.

Tunji Imoukhuede was arraigned on September 17, 2014.

This case was investigated by the U.S. Department of Housing and Urban Development, the City of Marietta, and the Marietta Police Department.

Assistant United States Attorney Shanya J. Dingle 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 - Anita R. Ford, a/k/a Anita R. Dixon, has been sentenced to four years and three months in prison for preparing and filing approximately $7 million worth of fraudulent personal income tax returns.

“This defendant filed thousands of fraudulent tax returns with the IRS over five years, seeking millions of dollars in fraudulent refunds from the U.S. Treasury,” said United States Attorney Sally Quillian Yates.  “On one of those occasions, the taxpayer was not her client, but was instead an undercover IRS agent.  This conviction should make abusive return preparers think twice before attempting to rob the U.S. Treasury.”

“IRS special agents work year round to investigate and root out dishonest return preparers,” stated IRS Criminal Investigation, Special Agent in Charge, Veronica F. Hyman-Pillot. “The message this case sends is that participation in refund fraud schemes does not pay and those who do will be prosecuted.  Ms. Ford violated the confidence of her clients, stole from the American taxpayer and today she is being held responsible for her actions.”

According to United States Attorney Yates, the charges and other information presented in court:  Between 2004 and 2012, Ford owned and operated Georgia Peach Financial & Fast Tax Service (“Georgia Peach”), an Atlanta, Ga., personal income tax preparation business.  During that time Ford prepared and electronically filed (“e-filed”) thousands of Form 1040 individual income tax returns with the IRS that intentionally misstated her clients’ income in order to generate fraudulent refunds.  In particular, Ford made up fake side businesses with fake income and fake expenses, and then attached false Schedule C’s (“Profit or Loss from Business”) to the clients’ tax returns showing the made up income and expenses.  This had the effect of off-setting her clients’ income tax liability from their real salaries, as reflected in Forms W2 (“Wage & Tax Statement”) issued by their real employers, generating false credits and refunds.

In March 2011, a Special Agent of IRS-CI visited Georgia Peach in an undercover capacity, posing as a taxpayer seeking to have a return prepared.  Ford began preparing a tax return in the agent’s cover identity, based on a Form W2 in the cover identity, and informed the agent that they would owe approximately $200.  In truth, the agent would have been due a refund of almost $400.  Ford then created a fictitious Schedule C for a fake beauty salon business, with $30,000 in fake business expenses, generating a fraudulent refund of over $4,000, and e-filed the completed tax return with the IRS.  To prepare and e-file the return, Ford charged a fee of $510.  Ford did not provide a copy of the tax return to the undercover agent or review it with the undercover agent before e-filing it.   

The returns identified in the scheme sought fraudulent refunds ranging from several thousand dollars to tens of thousands of dollars, including at least one fraudulent refund of more than $30,000.  The returns sought a total of $6,934,337.92 in fraudulent refunds for Ford’s clients, portions of which Ford retained as tax preparation fees.

Ford, 50, of Jonesboro, Ga., was sentenced by U.S. District Judge Timothy C. Batten, Sr., to four years, three months in federal prison to be followed by two years of supervised release, and ordered to pay restitution to the United States Treasury in the amount of $5,732,021.50.  Ford was convicted of these charges on December 3, 2013, after she pleaded guilty.

This case was investigated by Special Agents of IRS-Criminal Investigation.

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

The IRS would like to remind people that while most preparers provide excellent service to their clients, the IRS urges taxpayers to be very careful when choosing a tax preparer. Taxpayers should be as careful as they would be in choosing a doctor or a lawyer. It is important to know that even if someone else prepares a tax return, the taxpayer is ultimately responsible for all the information on the tax return.

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 J. Enrico has been sentenced to 12 years in prison for posing as a mortgage broker to defraud over 300 borrowers nationwide out of $1.2 million in application fees for loans that he could not close.

“This defendant preyed on prospective home owners across the country that were pursuing the American dream of owning their own home,” said United States Attorney Sally Quillian Yates. 

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The facts of this case clearly illustrate that mortgage fraud is not a victimless crime.  Because of the extensive harm done in these types of cases, the FBI will continue to aggressively identify, investigate, and present for prosecution those individuals involved.”

According to United States Attorney Yates, the charges and other information presented in court: From 2009 until approximately October 2012, Enrico held himself out as a mortgage or real estate loan broker, doing business as Enrico Corporation, in Bohemia, N.Y.  Enrico purported to offer a residential mortgage loan program that would finance as much as 105% of a home purchase at rates as low as 4.99%.  Enrico marketed his loan program to people who had sufficient income to make the monthly payment, regardless of their credit score.  He required prospective borrowers to pay him an up-front fee of $2,500 or more per loan, which supposedly was to cover the costs of processing and approving the loan application that borrowers submitted.   Enrico recruited brokers around the country, including in the Atlanta area, to market his fraudulent loan program nationwide.  Enrico incentivized the brokers by directing them to tack on extra application fees for themselves and promising them profits from the promised loan closings.

Enrico and his brokers received more than $1.2 million in application fees from more than 300 individuals across the country.  Although many of these individuals received a letter informing them that they had been approved for a loan, Enrico never closed a single loan.  In fact, Enrico lacked any source of funding for the loan program that he was marketing and appears to have done little or no work to obtain any such funding.  Enrico operated out his apartment, equipped with a telephone and a fax machine.  When the FBI executed a search warrant on his apartment in October 2012, special agents found boxes of loan applications stacked on the floor of Enrico’s closet.  Enrico had removed the checks from borrowers and brokers from such boxes and negotiated or cashed such checks.  Agents also found a total of $198,000 in cash in a safe, and other locations in Enrico’s apartment.

When buyers and brokers began questioning why loans never closed, Enrico gave numerous excuses and continued to promise that loans would close once various issues were resolved.  While prospective borrowers lost fees paid to Enrico and the brokers, many also lost additional funds (such as earnest monies and fees paid for appraisals or inspections) when their real estate purchase fell through after Enrico’s failure to close their loan.  Even after being indicted, Enrico continued to solicit loan application fees for loans that he could not close. 

Enrico, 47, of Bohemia, N.Y., has been sentenced to 12 years in prison to be followed by three years of supervised release.  The Court left restitution open for a period not to exceed 90 days to facilitate the final identification of Enrico’s victims and their loss amounts.  Enrico was found guilty of 17 counts of conspiracy, mail fraud, and wire fraud by a jury on March 28, 2014.

This case was investigated by the Federal Bureau of Investigation.

Assistant United States Attorneys Doug Gilfillan and Christopher Huber prosecuted the case.

Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. 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 – A federal grand jury has indicted 19 people for stealing government money, credit card fraud, and aggravated identity theft, based on their involvement in an extensive scheme to steal and cash United States Treasury checks and use fraudulently obtained credit cards.    

“Fraud and identity theft crimes are now perceived as lucrative alternatives for criminal organizations,” said United States Attorney Sally Quillian Yates.  “People who commit these crimes prey upon unsuspecting victims, stealing the victims’ money and compromising their livelihoods, sometimes causing lifelong financial consequences.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “These indictments and arrests are a direct result of an extensive 16 month multi-agency investigation focusing on a network of individuals who facilitated their criminal enterprise through various fraudulent schemes and other criminal activities.  The elaborate networking of this group allowed them to expand their criminal activities throughout multiple states as they increased their victim base.  The FBI would like to extend its gratitude to those participating law enforcement agencies at all levels as this investigation now moves into the court system for prosecution.”

According to United States Attorney Yates, the charges, and other information presented in court: From approximately June 2012 until September 2014, the defendants worked together to steal and then cash United States Treasury checks from various sources, including the United States mail.  The checks were originally issued to those entitled to the federal funds, including taxpayers receiving refunds, retired federal employees receiving pension benefits, military families, and Social Security beneficiaries receiving social security and disability payments. 

Each defendant had a critical role in the fraud scheme.  First, the indictment alleges that check suppliers, such as Erica Willis and Corey Howell, obtained and sold the stolen checks to other defendants.  Check purchasers, including Hussain Abdullah, Asad Abdullah, Hudhayfah Abdullah and Hafid Abdur-Rabbani, were frequent customers of the check suppliers and purchased checks by either paying 25% of the check’s face value or splitting the proceeds from the check in half with the supplier.  After purchasing the stolen checks, the defendants would pay identification manufacturers, like Ibrahim Abdur-Rabbani and Khalil Majeed, to make fake Georgia driver’s licenses matching the names and addresses of the victims, but containing photos of “check runners.”  In exchange for a fee, the “runners” would use the fake driver’s licenses to cash the stolen checks at retail locations throughout the Atlanta, Ga., area, such as Wal-Mart, Kroger, and Publix.

In addition to the check-cashing scheme, the indictment charges several defendants with a separate credit card fraud scheme against Wal-Mart and Sam’s Club.  Between April 2011 and November 2011, defendants Asad Abdullah, Mikal Majeed, and Billee Cosby obtained and used counterfeit identification documents to pose as real Sam’s Club members.  After presenting the fraudulent documents at various Sam’s Club locations in Georgia, Tennessee, and Alabama, the defendants requested replacement store credit cards in the names of the victims, which the defendants then used to buy gift cards, gas, groceries, and other items at various Sam’s Club and Wal-Mart locations.

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

The 19 defendants have been indicted on multiple charges of theft of government funds, credit card fraud, related conspiracy offenses, and aggravated identity theft.  The indictment also contains other charges against individual defendants, ranging from passport fraud to illegally obtaining a firearm. The defendants were indicted by a federal grand jury on September 11, 2014, and some have already made their initial appearances before United States Magistrate Judge Alan J. Baverman.

Those indicted and arrested, or already in custody, and their charges include (all from Atlanta, except where otherwise indicated):

• Hussain Abdullah, 33, conspiracy to Commit Theft of Government Funds, Theft of Government Funds, Aggravated Identity Theft, and Conspiracy to Commit Hobbs Act Robbery.

• Hudhayfah Abdullah, 31, conspiracy to Commit Theft of Government Funds, Theft of Government Funds, Aggravated Identity Theft, and Lying on Required Form to Purchase a Firearm.

• Asad Abdullah, a/k/a “Baldhead,” 36, conspiracy to Commit Theft of Government Funds, Theft of Government Funds, Aggravated Identity Theft, Conspiracy to Commit Access Device Fraud, and Access Device Fraud.

• Hafid Abdur-Rabbani, 36, conspiracy to Commit Theft of Government Funds, Theft of Government Funds, and Aggravated Identity Theft.

• Ibrahim Abdur-Rabbani, 32, of Decatur, Ga., conspiracy to Commit Theft of Government Funds, Theft of Government Funds, and Aggravated Identity Theft.

• Khalil Majeed, 34, conspiracy to Commit Theft of Government Funds, Theft of Government Fund, and Aggravated Identity Theft.

• Sayeed Valdez, 37, conspiracy to Commit Theft of Government Funds, Theft of Government Funds, and Aggravated Identity Theft.

• Erica Willis, 35, conspiracy to Commit Theft of Government Funds, Theft of Government Funds, and Aggravated Identity Theft.

• Dexter Willis, a/k/a Qadir Monies, a/k/a “Dent,” 35, conspiracy to Commit Theft of Government Funds.

• Antonio Slaton, 36, conspiracy to Commit Theft of Government Funds.

• Cory Howell, 42, conspiracy to Commit Theft of Government Funds.

• Damion Davis, 30, of College Park, Ga., conspiracy to Commit Theft of Government Funds.

• Ali Al-Amin, 35, conspiracy to Commit Theft of Government Funds, Theft of Government Funds, and Aggravated Identity Theft.

• Zakariyah Abdullah, 34, conspiracy to Commit Theft of Government Funds, Theft of Government Funds, Aggravated Identity Theft, and Improper Use of a Passport.

• Billee Cosby, 33, conspiracy to Commit Access Device Fraud, Access Device Fraud, and Aggravated Identity Theft.

• Mikal Majeed, 32, of Ellenwood, Ga., conspiracy to Commit Access Device Fraud, Access Device Fraud, and Aggravated Identity Theft.

• Muhajid Ahmad, 32, conspiracy to Commit Theft of Government Funds, Theft of Government Funds, and Aggravated Identity Theft.

• Joann Drigo, 26, conspiracy to Commit Theft of Government Funds.

• Jasmine Proctor, 19, conspiracy to Commit Theft of Government Funds, and Theft of Government Funds.

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

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

Assistant United States Attorneys Kim S. Dammers and Nekia S. Hackworth 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, GA - The United States Attorney’s Office announced it has reached settlements with Banks-Jackson-Commerce Hospital and Nursing Home Authority d/b/a Banks Jackson Commerce Medical Center (BJC) and Dr. Narasimhulu Neelagaru that total over $500,000. 
 
“Kickbacks pervert our health care system, which is designed to insure that health care providers make decisions based solely on what is best for the patient,” said Sally Quillian Yates, United States Attorney for the Northern District of Georgia.

“The sustainability of the Medicare Trust Fund is dependent, in large part, upon medical facilities and professionals being prudent and responsible in their billing of health care programs,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta.  “This settlement demonstrates the OIG’s commitment to ensuring that those who bill the government for services do so in a manner that is in accordance with the law.”

The civil settlement resolves the United States’ investigation into BJC’s practices related to paying compensation to Dr. Neelagaru for professional services and medical director services that was in excess of fair market value.  The alleged period for these improper payments and patient referrals was from 2000-2009.  Because of the nature of these payments to Dr. Neelagaru by BJC, the United States claims that BJC received improper payments by the Medicare program for patients referred to BJC by Dr. Neelagaru.

This settlement also resolves a lawsuit filed by Ralph D. Williams under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the United States and share in any recovery obtained.

The case, pending in the Northern District of Georgia, is filed under United States of America ex rel. Ralph D. Williams v. Banks-Jackson-Commerce Hospital and Nursing Home Authority d/b/a Banks Jackson Commerce Medical Center (“BJC”), Narasimhulu Neelagaru, M.D. and North Georgia Cardiology, PC, No. 1:08-cv-3235.   Mr. Williams will receive a share of the settlement payment that resolves the qui tam suit that he filed.  The claims settled in the civil settlement are allegations only, and there has been no determination of liability.

BJC reached its settlement with the United States in September 2010, but the case remained under seal pursuant to a Court order until the United States settled with Dr. Neelagaru.  In connection with its settlement, BJC entered into a Corporate Integrity Agreement with the Department of Health and Human Services.  That agreement imposes certain obligations on BJC to bolster its compliance program, including independent review of BJC’s financial arrangements with medical providers who refer patients to BJC.

BJC paid $329,000 to settle the case and Dr. Neelagaru has agreed to pay $200,000.  The settlement resolves claims that BJC improperly billed the Medicare program for certain procedures and services rendered to patients in violation of the Physician Self-Referral Law, commonly known as the Stark Law, and in violation of the Anti-Kickback Statute.  

This resolution is part of the government’s emphasis on combating health care fraud under the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009, by Attorney General Eric Holder and Kathleen Sebelius, then-Secretary of the Department of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover more than $14 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $20 billion.

This case was investigated by Special Agents of the Health & Human Services, Office of Inspector General.  The civil settlement was reached by Assistant United States Attorney Christopher J. Huber.

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

ATLANTA – Destin Whitmore has pleaded guilty to threatening and extorting teen girls with sexually explicit images of themselves, and to distributing and possessing child pornography.

“Whitmore preyed on vulnerable girls who had the misfortune of crossing his path, both in person and online,” said United States Attorney Sally Quillian Yates.  “We cannot emphasize enough the dangers to children of revealing personal information and sexually explicit images to others online.  This case shows that those images could resurface in the most unexpected and unfortunate ways.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s guilty plea will begin the process of removing a manipulative child predator from our streets.  The criminal conduct of Mr. Whitmore, as well as those like him, ensures that the FBI will continue to work with our law enforcement partners in providing significant investigative resources toward the protection of our nation’s youth from those that would exploit or harm them.”

“In our continued partnership with the F.B.I., the Cobb County District Attorney’s Office, and the U.S. Attorney’s Office, and as a member of I.C.A.C. (Internet Crimes Against Children) Task Force, the Cobb County Police Department’s Crimes Against Children Unit will continue to aggressively pursue and prosecute those individuals who seek to exploit and harm our children,” said Sergeant Dana Pierce, Public Information Officer, Cobb County Police Department.

According to United States Attorney Yates, the criminal indictment, and information presented in court: In April 2012, a teen girl in Arizona reported that she was contacted using a popular social media website by an individual using a profile name “Ralph Jenkins.”  The individual using the “Jenkins” profile, later identified as Destin Whitmore, sent back to the teen compromising images of herself that she had previously sent to Whitmore, and threatened to send those images to others, including her family members, if she did not immediately create additional images for him. 

A subsequent investigation of that profile, along with a profile using the name “Lenny Carlington” showed that both profiles were used by the Defendant, along with his own social media accounts, to transmit pornographic images of numerous teen girls back to the girls to extort them for additional images.  If they did not comply with his demands, he threatened to distribute the pornographic images to others and post them on various websites for public consumption.  Many of the girls Whitmore extorted were known to him through personal relationships or through long term communications using web cameras with the girls online.  Some of the girls had previously sent sexually explicit images to Whitmore or had provided such images to others, which Whitmore subsequently obtained.

Whitmore, 23, of Canton, Ga., pleaded guilty to five counts of extortion, three counts of distribution of child pornography, and two counts of possession of child pornography. Sentencing for Whitmore is scheduled for December 9, 2014, at 10:30 a.m. before U.S. District Court Judge Charles A. Pannell, Jr.
This case is being brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute individuals who sexually exploit children and to identify and rescue victims.

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

Assistant United States Attorneys Jill E. Steinberg and Mary L. Webb are prosecuting the case.

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

ATLANTA - Patrick Jackson, a former janitorial services manager for DeKalb County and Georgia World Congress Center, has been indicted and arraigned on charges of mail fraud and bribery. 

“Jackson is charged with abusing his official positions with DeKalb County and the Georgia World Congress Center,” said United States Attorney Sally Quillian Yates.  “According to the indictment, over a six-year period he accepted bribes in exchange for his helping a company attain and maintain exclusive government contracts.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: "The FBI Atlanta office's public corruption program remains very active and determined in exposing the criminal conduct of public officials. The investigation and indictment of Mr. Jackson serves as further example of the FBI's commitment toward accountability for those serving the public and holding positions of trust."

According to United States Attorney Yates, the charges, and other information presented in court: Jackson was simultaneously employed by two government entities, DeKalb County and Georgia World Congress Center, from approximately 2006-2012. In both positions, he served as the manager of janitorial services. The indictment alleges that Jackson used his position as a public official to obtain favors from a company, identified only as “Company A,” that provided janitorial services to both DeKalb County and Georgia World Congress Center. Jackson was employed by “Company A” prior to his employment with DeKalb County and Georgia World Congress Center.

While employed by DeKalb County and Georgia World Congress Center, Jackson lived in a luxury apartment in Atlanta that was being paid for and furnished by “Company A.” In exchange, Jackson agreed to use his position as a public official to benefit the interests of “Company A” in its business dealings with DeKalb County and Georgia World Congress Center. Jackson did not disclose to either employer that “Company A” was providing him with an apartment. The indictment alleges that, by accepting these bribes, Jackson deprived his employers of their right to his honest services.

Patrick Jackson, 55, of Loganville, Ga., was arraigned before United States Magistrate Judge Linda T. Walker.  Jackson was indicted by a federal grand jury on September 9, 2014.

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

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

ATLANTA – Former attorney Michael Rene Berlon has been arraigned on federal charges of mail and wire fraud. 

“This defendant is charged with defrauding his own clients out of over $1.8 million,” said United States Attorney Sally Quillian Yates.  “They came to him for legal help, and instead he drained their bank accounts.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Individuals relying on the professionalism and trust of individuals like Mr. Berlon should be able to turn to someone when that trust is violated. The FBI, in being well positioned to investigate such allegations involving the diversion of funds through mail and wire fraud, is that someone.”

According to United States Attorney Yates, the charges, and other information presented in court: Berlon, who practiced in Grayson, Ga., through his law firm, the Law Office of Michael R. Berlon, is charged with obtaining funds from clients of his law firm and other individuals through false pretenses. The indictment alleges that some clients provided money to him believing that he would create a trust for them, and would hold the funds in trust. Instead, Berlon used the funds for personal expenses, including to pay his American Express bill and to repay other clients.

The indictment also alleges that in one instance, Berlon obtained money from two individuals who were looking for his assistance with starting a new business. He told the victims that he would help them get a loan, but they were required to provide a percentage of the requested loan amount as a down payment. Instead of assisting them with obtaining a loan, Berlon used the funds for his personal expenses and debts. In total, it is alleged that Berlon received at least $1.8 million in client funds from 2008-2013. 

Berlon, 55, of Grayson, Ga., was arraigned before United States Magistrate Judge Justin S. Anand.  He was indicted by a federal grand jury on September 9, 2014.

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 Jamie L. Mickelson is prosecuting the case.

Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. 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 – Johnathon Kelly has been sentenced to eleven years for interstate transportation of a minor for prostitution.

“This defendant took advantage of a young girl who was especially vulnerable, having run away from her home in Alabama, and exploited her for his personal gain,” said United States Attorney Sally Quillian Yates.  “But she was saved as a result of the training and diligence of two state and local law enforcement officers who, during a routine traffic stop, recognized that the defendant might be sexually exploiting this child.  The officers’ suspicions proved to be well-founded.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s sentencing of Johnathon Kelly serves as a reminder to all that there are people like him waiting for the opportunity to exploit our nation’s youth.  Today’s sentencing of Kelly also illustrates that there are dedicated law enforcement officers who are aware of this type of criminal activity and who remain vigilant in efforts toward protecting those being exploited.”

According to United States Attorney Yates, the charge, and other information presented in court:  On or about November 22, 2012, Kelly drove 17-year-old R.W. from her home in Birmingham, Ala., to Atlanta, Ga.  After R.W.’s arrival in Atlanta, Kelly posted photographs of R.W. on an Internet website.  Using multiple Internet ads of R.W., Kelly obtained prostitution clients for the girl, both in and outside Georgia – including the states of Louisiana and Texas.  Kelly caused R.W. to engage in prostitution at various hotels, including hotels in Augusta and Norcross, Ga., Bossier City, La., and Dallas, Texas. 

R.W. was rescued from Kelly on January 9, 2013, after Kelly was stopped for speeding while driving on Interstate 20.  R.W. was a passenger in the vehicle.  A Greene County Sheriff’s deputy, who had recently undergone training in identifying human trafficking victims, and a Georgia State Patrol officer, involved in the traffic stop noticed that R.W. appeared frightened of Kelly; separated R.W. from Kelly; and, after briefly interviewing her, discovered that Kelly was causing R.W. to engage in prostitution.

Kelly, 31, of Atlanta, GA, was sentenced to eleven years in federal prison, to be followed by 20 years of supervised release.  He must also register as a sex offender as a condition of his supervised release.  Kelly must also pay the victim $7,500 in restitution.  Kelly pleaded guilty on June 30, 2014.

The case was investigated by the Federal Bureau of Investigation, Georgia Bureau of Investigation, Greene County Sheriff’s Office, and Georgia State Patrol.

Assistant United States Attorneys Mary F. Kruger, Richard S. Moultrie, Jr., and Susan Coppedge prosecuted the case.

This case is a 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/.

WASHINGTON – Assistant United States Attorneys Glenn D. Baker, William G. Traynor, Dahil D. Goss, J. Russell Phillips, Stephen H. McClain, Investigator Donna J. Davis, IT Solutions Manager Michael Laskowski, and Paralegal Specialist Barbara A. McIntosh of the U.S. Attorney’s Office in the Northern District of Georgia were among the 243 members of the Department of Justice recognized by Attorney General Eric Holder and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 30th annual Director’s Awards Ceremony today in Washington D.C.

The Northern District of Georgia was one of 44 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.

In his prepared remarks to awardees, Attorney General Holder said, “Locally, nationally, and internationally, you represent the very best that this Department has to offer.  Your work embodies our ongoing commitment – not merely to win cases, but to do justice; to protect our fellow citizens from crime, violence, and terrorism; to empower the most vulnerable among us; and to uphold the rule of law.” 

EOUSA Director Monty Wilkinson echoed those sentiments, saying to the recipients, “You have persevered, and remained focused and motivated – achieving remarkable results in work that makes a difference in the lives of citizens across our great country. The vast scope of your collective accomplishments is nothing short of exceptional.”

“We are fortunate to have public servants of the highest caliber working to seek justice on behalf of the citizens of this district,” said United States Attorney Sally Quillian Yates.  “Each of these deserving award recipients is remarkably talented and dedicated to protecting our community.”

The EOUSA Director’s Awards recipients from the United States Attorney’s Office for the Northern District of Georgia are as follows:

• AUSAs Russell Phillips and Steve McClain received a Director’s Award for Superior Performance as AUSAs in recognition of their investigation and conviction of Andrew S. Mackey and his common-law-wife, Inger Jensen, who operated a $12 million Ponzi scheme that victimized more than 150 investors throughout the United States. Mackey and Jensen pretended to be financial experts who, acting as ASM Financial Funding Corporation, invested funds for “sophisticated investors” and promised earnings of 20% per month.  They never generated any return on their investments however, and lost all of the principal they invested.  Most of the Georgia victims were members of the same church who invested because their pastor did so and appeared to be receiving huge returns.  A jury convicted Mackey and Inger on 15 counts of wire fraud, mail fraud, and conspiracy after an eight-day trial.  Mackey was sentenced to serve 27 years, and Jensen was sentenced to serve 14 years.  Mackey’s sentence is the longest ever in the Northern District of Georgia for a case of this type.

• AUSAs Glenn D. Baker, William G. Traynor, and Dahil D. Goss; Investigator Donna J. Davis; and Paralegal Specialist Barbara A. McIntosh received a Director’s Award for Superior Performance by a Litigative Team for their investigation and prosecution of George Houser for healthcare and tax fraud.  Houser was a nursing home owner who accepted $32.9 million in Medicare and Medicaid funds while his operation of the nursing homes exhibited a long term pattern and practice of conditions that were so poor that any services provided were of no value to the residents.  The residents of three nursing homes went hungry and lived in abominable conditions.  One resident’s physician removed a cockroach that had burrowed deep into the resident’s ear when she was hospitalized for dehydration and malnutrition.  Also, a nurse from another nursing home, who had been called in to assist, described her shock when she found one bed-ridden resident covered from her neck to her feet with small black bugs, and the woman's eyes matted shut from lack of care and cleaning.

After a four-week trial, Houser was found guilty of conspiring to defraud the Medicare and Georgia Medicaid programs by billing for services he did not provide in the operation of three nursing homes between 2004 and 2007.  At Houser’s sentencing, the district judge described the conditions at the nursing homes as “barbaric, inhumane and uncivilized,” and commented that if he had a case alleging these same conditions in a prison, he would close that prison on Eighth Amendment grounds.  The court sentenced Houser to 20 years in prison. The significant sentence Houser received generated considerable awareness at both the local and national levels.  

• IT Solutions Manager Michael Laskowski is being recognized as part of the team whose innovative work helped migrate the entire community of 94 United States Attorneys’ offices and the Executive Office for United States Attorneys to the Microsoft Office suite during 2013.  This initiative achieved a major milestone in transforming the community’s ability to work with mobile devices and applications essential to functioning in the 21st century law enforcement environment.  The team harnessed the transition to develop powerful new ways for attorneys and their colleagues to work.  They created the Word USATab that includes many custom features for legal documents, such as embedding the Lexis and Westlaw Table-of-Authorities for citation style formatting and legal entity insertion.  The team also created a set of standardized intelligent templates to automate the reuse of content and legal references and reduce keyboarding and mistakes.  This effort saved $820,875 in fiscal year 2013, with savings expected to continue into the future.

EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.

ATLANTA – Charles Pelts, who was already a registered sex offender, has been sentenced to 15 years in prison for receipt of child pornography.

“By trafficking in graphic images of pornography depicting very young children, Pelts contributed to the horrifying child exploitation trade,” said United States Attorney Sally Quillian Yates.  “We remain steadfast in partnering with federal and local law enforcement officers to vigorously prosecute those engaged in the market for child pornography.”

“The defendant’s egregious disregard for the law and his perverse desire to witness the rape of children simply have no place in our society,” said Ryan L. Spradlin, acting special agent in charge of ICE Homeland Security Investigations in Atlanta. “The victims whose abuse is so starkly recorded in collections like this know exactly what sort of sick pleasure the defendant derived from seeing the worst moments of their lives. It’s enough to make anyone’s skin crawl.”

According to United States Attorney Yates, the charge, and other information presented in court:  In or about November 2013, special agents with the Department of Homeland Security Investigations, Immigration and Customs Enforcement (“HSI”), discovered that Pelts, a resident of Marietta, Ga., had used two e-mail accounts to transfer images of child pornography to others – including images depicting graphic sex acts involving very young children.  HSI special agents subsequently obtained warrants to search Pelts’ e-mail accounts and his cell phone.  A review of his e-mail accounts revealed that Pelts had received approximately 11,000 images of child pornography, including images of toddlers and infants.  His cell phone contained approximately 4,050 images of child pornography.  The agents also learned that Pelts had been registered as a sex offender since 2004.

Pelts, 35, of Marietta, Ga., was sentenced to 15 years in federal prison, to be followed by lifetime supervised release.  Pelts will also be required to register federally as a sex offender when he is released from prison.  He pleaded guilty on May 14, 2014.

The case was investigated by Homeland Security Investigations, Immigration and Customs Enforcement.

Assistant United States Attorney Ryan K. Buchanan prosecuted the case.

This case is a 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 – Todd Alexander Pell has been sentenced to 29 years in federal prison for producing pornographic images of young boys.

“The repeated acts of sexual abuse committed by Pell are appalling” said United States Attorney Yates.  “We applaud the victim who had the courage to come forward and expose this abuse; he likely saved other young boys from the same fate.” 

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s lengthy prison sentence of Pell removes a dangerous child predator from our community and prevents him from harming others in this manner.  In working with our various law enforcement partners in keeping America’s youth safe, the FBI will continue to provide significant assets and resources toward the investigation of violent crimes against children.”

According to United States Attorney Yates, the criminal indictment, and information presented in court:  In June 2013, a fourteen (14) year old male reported to Duluth Police that he had been sexually assaulted by Pell from December 2012 through February 2013 at Pell’s residence on Bromley Rowe in Duluth, Ga. Pell initially paid the victim to do yard work, but later propositioned the victim to engage in sex acts with Pell.  In late 2012, Pell began taking sexually explicit photos of the victim and sexually abusing him.  After each assault by Pell, Pell gave the victim money and took the victim out to eat. Pell also brought two older teens into his home to sexually assault the victim.  Pell took photographs of these older males engaged in sex acts with the victim.  During the course of the investigation, law enforcement also discovered two additional minor victims who were sexually abused by Pell.  During the execution of a search warrant at Pell’s home, law enforcement recovered the camera Pell used to capture the sexual assaults and computers on which child pornography was found.

Pell, 44, of Duluth, Ga., was sentenced by United States District Judge Steve C. Jones to 29 years in prison to be followed by lifetime supervised release.  He was also ordered to pay a $100 special assessment.  The defendant will be required to register as a sex offender when he is released from prison. As part of his plea agreement with federal and state authorities, Pell will also enter a guilty plea to six counts of aggravated sodomy in Gwinnett County Superior Court.

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

This case is being brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute individuals who sexually exploit children and to identify and rescue victims.

Assistant United States Attorney Jill E. Steinberg prosecuted the case.

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

ATLANTA - Antonio T. Hurt has been sentenced to two years and one month in federal prison for stealing nearly $2 million from a federal program that partially reimburses daycare centers for the cost of meals for needy children.

“Hurt used the child nutrition funds to expand his day care business, lease cars, buy jewelry, and pay for other personal expenses,” said United States Attorney Sally Quillian Yates.  “Stealing almost $2 million in taxpayer money is bad enough, but stealing funds intended to feed underprivileged children is outrageous.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Stealing federal funds destined to feed needy children and using those funds to purchase luxury personal items is the epitome of a selfish act.  This sentencing will hold Mr. Hurt accountable for his selfish act and serve as a reminder that the FBI will make every effort to identify and present for prosecution those individuals abusing their positions by diverting and stealing federal funds from their intended purpose for personal gain.”

“It is unfortunate that programs funded by the government, such as this one which assists in providing healthy meals to eligible day care children, are sometimes seen as a mechanism for fraud by individuals who continue to think they can get away with schemes to enrich themselves.  Taxpayers trust that when such funding is provided that it will be utilized to help people and not be misused and misappropriated by those entrusted to deliver the programs.  The United States Department of Agriculture, Office of Inspector General, continues to dedicate its resources to work with the U.S. Attorney’s Office and its federal, state, and local law enforcement partners to investigate and prosecute such individuals.  We hope that today’s sentencing of Mr. Hurt sends a strong message to others that fraud will not be tolerated in government funded programs,” said Karen Citizen-Wilcox, Special Agent-in-Charge for USDA’s Office of Inspector General.

According to United States Attorney Yates, the charges, and other information presented in court:  Between 2007 and 2010, Hurt served as the chief executive officer of Bright Star Early Learning Center, which owned and operated multiple daycare centers throughout metropolitan Atlanta, Ga., and in other parts of north Georgia under the name Bright Star. Hurt also entered into franchise agreements that allowed multiple additional third-party daycare centers to operate under the Bright Star name.

In February 2006, Hurt arranged for Bright Star Early Learning Center to apply to participate in the Child & Adult Care Food Program (CACFP). CACFP, which is funded by the U.S. Department of Agriculture under the National School Lunch Act of 1964, is a federal program that partially reimburses daycare centers for the cost of serving breakfast and lunch to eligible children whose family income falls below certain thresholds. In Georgia, the program is administered by the Georgia Department of Early Care & Learning. Child and adult care centers that are eligible to participate in the program are required to submit monthly claims to the Department of Early Care & Learning to detail the number of eligible students, meals, and other information for each 30-day period. The Department of Early Care & Learning then reimburses the daycare centers.

Beginning in October 2007 and continuing through January 2010, Hurt submitted millions of dollars in CACFP reimbursement claims to the Department of Early Care & Learning on behalf of his own daycare centers and his franchisees. Hurt’s reimbursement claims intentionally misstated the number of eligible students, meals, and other information. As a result, the Department of Early Care & Learning issued fraudulently inflated reimbursement funds to accounts that Hurt controlled. Hurt then issued the expected payments to the unsuspecting daycare centers and retained the fraudulently inflated portion for himself, amounting to approximately $1.9 million over a two-year period. Hurt used the money to expand and fund the operation of his daycare business and to live beyond his means.

Hurt, 39, of Macon, Ga., was formerly a high school principal in Georgia and Maryland.  Hurt was sentenced by U.S. District Judge Amy Totenberg to two years, one month in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $1,872,152.78.  Hurt was convicted on these charges on April 9, 2014, after he pleaded guilty.

This case was investigated by the Federal Bureau of Investigation.

Assistant United States Attorney David M. Chaiken 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 – Angela Thicklin (f/k/a Angela Stanback Kinlaw) has been indicted for allegedly conspiring with Raytosha Elliott, a former contracting official with the Georgia Department of Defense, to obtain contracts in exchange for illegal kickbacks.   

“Thicklin is the second vendor charged in this corruption case involving a former Georgia National Guard employee who is charged with awarding contracts to her friends, like Thicklin, in exchange for illegal kickbacks,” said United States Attorney Sally Quillian Yates.    

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated:  “The alleged actions of these defendants reflect that they have no sense of duty and that they defy the rule of law.  They exhibited a very active scheme to defraud.  The FBI, in working with its many law enforcement partners, will continue to make such public corruption cases an investigative priority.”

Special Agent in Charge John F. Khin, Southeast Field Office, Defense Criminal Investigative Service, commented, “Ensuring the integrity of Department of Defense programs will always remain one of DCIS' top priorities.  DCIS special agents, in collaboration with our Federal and State partners, will fully investigate and bring to justice corrupt employees who undermine the public trust, and use their Government positions for personal gain.”

“Corruption at any level diminishes the hard work and dedication of the thousands of government employees who are dedicated to providing honest services to the American public,” stated Special Agent in Charge, IRS Criminal Investigation Veronica F. Hyman-Pillot.  “IRS-Criminal Investigation stands committed to weed out individuals who to take the path to financial success through greed and corruption.”

Interim Inspector General Deb Wallace of the State of Georgia Office of Inspector General said, “This second indictment should serve notice that the State of Georgia Office of Inspector General and its investigative counterparts will vigorously pursue all parties who choose to perpetrate fraud schemes in government.”

According to United States Attorney Yates, the charges and other information presented in court:  From May 2007 through April 2012, Elliott worked for the Georgia Department of Defense, the state agency charged with coordinating and supervising all agencies and functions of the Georgia National Guard.  Elliott worked as an Engineering Operations Manager out of the Clay National Guard Center, located at Dobbins Air Reserve Base, in Marietta, Ga.  In that position, Elliott worked with engineering firms to develop bid-ready construction projects, prepared bid documents, and oversaw no-bid purchase orders.  Under the rules governing the contracting process that Elliott oversaw, projects that cost less than $5,000 did not need to go through a competitive bidding process, allowing Elliott to award the contracts.  She then certified that the work had been completed for those projects, and facilitated payment to the vendors who allegedly completed such projects.

In that position, Elliott awarded numerous contracts under $5,000 to vendor companies created by her friends and associates, including co-defendant Angela Thicklin.  In return, the friends and associates paid Elliott kickbacks, equal to 50% of the value of the contracts, for steering the contracts to them.  Elliott falsely certified that work had been completed when, in fact, it had not been, in order to facilitate payment.  One of the vendor companies was 3M Construction LLC, which was owned by co-defendant Thicklin.  Elliott awarded 3M Construction at least six contracts with a total value of approximately $25,000.  Those contracts were for a variety of services supposedly to be performed by 3M Construction, including electrical work, landscaping, and HVAC work. 

Instead, the defendants split the money awarded under these contracts and spent it on personal items, including travel, meals, and merchandise.  As part of the scheme, Elliott owned a company named Tech Group Investments, LLC.  Thicklin took money she had obtained from the Georgia Department of Defense contracts, and paid kickbacks to Elliott through this company.

Elliott also awarded at least 17 contracts, worth approximately $75,000, to a company named Total Source Solution, LLC, which was owned by Lakeysha Ellis.  On March 27, 2014, Ellis pleaded guilty to conspiring with Elliott to obtain these contracts in exchange for kickbacks.  The alleged scheme involving Total Source Solution worked in a similar fashion to the one involving 3M Construction.

Additionally, Ellis pleaded guilty to conspiring with Elliott to defraud Baumueller-Nuermont Corporation, an industrial equipment company with offices in Atlanta, Ga.  The indictment alleges that Elliott and Ellis defrauded the company from January 2009 through May 2011, when Ellis was an accountant there.  Ellis falsified employee records in the corporation’s payroll system to disguise payments to the defendants’ two companies.  Ellis created at least two phantom employees by altering the names of real employees (by switching their first and last names) and slightly changing their Social Security numbers.  She then caused the payroll system to make fraudulent salary payments to Total Source Solution and Tech Group Investments for these new, non-existent employees.  Baumueller-Nuermont lost about $85,000 from this scheme.

The 15-count superseding indictment charges Elliott, 34, and Thicklin, 43, both of Atlanta, Ga., with conspiracy and bribery of a public official.  Elliott is also charged with separate counts of conspiring with Ellis and wire fraud.  After the original indictment was returned on January 14, 2014, Ellis, 36, of Atlanta, Ga., pleaded guilty to two counts of conspiracy.

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

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

Assistant United States Attorney Stephen H. McClain is prosecuting the case.

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

ATLANTA - Zerry Feaster has been sentenced for stealing over $80,000 from the Department of Veterans Affairs (VA), where she worked as a secretary, and making false statements. 

“Rather than supporting the men and women who have served our country honorably, Ms. Feaster stole from the VA to gamble and buy herself luxury goods at Coach and Tiffany,” said United States Attorney Sally Quillian Yates.  

“Feaster’s betrayal of the public trust for personal gain is reprehensible” said Special Agent in Charge Monty Stokes, Office of Inspector General, U. S. Department of Veterans Affairs.  “The VA OIG will vigorously investigate allegations of the misuse of public funds whether for the funds whenever the funds are related to VA programs and operations.”

According to United States Attorney Yates, the charges and other information presented in court: Feaster was employed as a secretary in the Police Services Division at the Atlanta VA Medical Center (VAMC) in Decatur, Ga.  From February 2010 through February 2012, Feaster stole over $80,000 from the VA by misusing her government-issued credit card.  The credit card was supposed to be used to purchase office supplies and other equipment for the Police Services Division at the Atlanta VAMC.  Feaster instead misused her government-issued credit card to purchase pre-paid gift cards, which she then used to buy personal items, such as luxury accessories and jewelry, as well as to gamble.  Feaster attempted to hide the gift cards purchases by creating and submitting fake purchase orders to the VA, falsely claiming that she was using the government credit card to buy office supplies and equipment. 

Feaster, 46, of Ellenwood, Ga., has been sentenced to one year, one month in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $88,264.47.  Feaster was convicted of these charges on June 27, 2017, after she pleaded guilty to seven counts of theft of government funds, and five counts of making false statements.

This case was investigated by the Department of Veterans Affairs, Office of 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 – Daniel K. Lane, Jr. has pleaded guilty to conspiring to commit healthcare fraud for filing fraudulent claims with Medicare, Blue Cross Blue Shield, and other insurers. 

“This healthcare fraud scheme originated in the executive suite of Compass Healthcare and ended with the company filing thousands of false insurance claims,” said United States Attorney Sally Quillian Yates.  “After cheating the insurers by getting them to pay for high-cost medical equipment never provided, the defendant papered up the fraud by sending in altered prescriptions with false patient diagnoses to support the claims.  His business model was really a scam.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Leadership within the healthcare industry should be part of the cure, not the problem with respect to healthcare fraud related matters.  The FBI will make every effort to focus its investigative resources and assets in identifying individuals such as Mr. Lane and presenting them for federal prosecution.”

"Protecting patients from unscrupulous billing practices and protecting the Medicare trust fund remains this agency's top priority," said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. "In addition to billing for services that were not provided, in some instances, this owner reported false diagnosis codes, making it difficult for the patients to subsequently obtain health insurance. Justice was well served in this instance."

According to United States Attorney Yates, the charges and other information presented in court:  Daniel K. Lane, Jr. is the Vice President and Chief Financial Officer for Compass Healthcare, Inc., a durable medical equipment business headquartered in St.  Louis, Mo., with offices in Atlanta, Ga., and other cities.  Compass Healthcare specializes in providing compression stockings to patients who have been diagnosed with medical conditions such as chronic venous insufficiency and edema.  Doctors may prescribe compression stockings, which come in different levels of tightness, as treatment for these conditions.

Lane’s position included responsibility for the billing of insurance companies for the compression stockings that Compass Healthcare provided to individuals who were covered by insurance.  He fraudulently set up the company’s billing system so that in most instances it would automatically bill the insurers for the highest compression stocking, regardless of which stocking had actually been provided to the individual, in order to generate higher payments from Medicare, Blue Cross, and other insurers.  As a result, Compass Healthcare routinely “upcoded” the claims it submitted to insurers for the stockings it had provided to individuals.

Lane conspired with an Office Manager for Compass Healthcare, Holly Keisker, and others to submit these false claims and conceal the fraudulent upcoding.  Also as part of the scheme, Compass Healthcare included false diagnoses on its insurance claims to ensure payment.  These false claims represented that Compass Healthcare customers had been diagnosed with various medical conditions, including chronic venous insufficiency and edema, to support the claims for high compression stockings, when in fact the customers had not been diagnosed by a doctor.  Instead, Compass Healthcare used “blanket” diagnosis codes that were false to support insurance claims for compression stockings provided to customers who had no medical condition.  Lane, Keisker, and others conspired to forge and alter doctors’ prescriptions so that they would support the fraudulent claims that had been submitted to insurers.  They altered the prescriptions to falsely reflect that a high compression stocking had been prescribed and that the patient had been diagnosed with a medical condition.  In 2011, Lane submitted altered prescriptions to Blue Cross in response to an audit conducted by the insurer.

Lane, 57, of St. Louis, Mo., pleaded guilty to one count of conspiracy to commit healthcare fraud.  On September 19, 2013, Keisker, 61, of St. Louis, Mo., pleaded guilty to one count of conspiracy to commit health care fraud. 

Sentencing for Lane is scheduled for November 19, 2014, at 10:00 a.m., before United States District Judge Willis B. Hunt, Jr..  Sentencing for Keisker is scheduled for December 10, 2014, at 10 a.m., before Judge Hunt.

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

Assistant United States Attorneys Stephen H. McClain and Jeffrey W. Davis 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 is www.justice.gov/usao/gan.

ATLANTA – Elaine Boyer, the former Commissioner of District 1 in DeKalb County, Ga., has been arraigned on charges relating to her embezzlement of county funds and misuse of her DeKalb County credit card.

“As an elected County Commissioner, Ms. Boyer had a duty to serve the best interests of the citizens of DeKalb County,” said United States Attorney Sally Quillian Yates.  “Instead of honoring that commitment, Ms. Boyer stole from the citizens she was sworn to serve by diverting thousands of dollars in county funds to her personal bank account and using her county-issued credit card like it was her own.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Public corruption based investigations often stem from actions that would be seen as clearly improper and illegal to the average person.  The charges in this case, however, reflect criminal actions of a twenty-two year veteran DeKalb County Commissioner who knew fully the nature of her actions and she will now face the consequences of those actions.  The FBI places a high priority toward investigating allegations of public corruption due to the extensive harm that it can cause on many levels and we ask that anyone with information regarding such allegations to please contact their nearest FBI field office.”

According to United States Attorney Yates, the charges, and other information presented in court:  In DeKalb County, Ga., 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.

Since 1992, Ms. Boyer served as the Commissioner of District 1, which serves citizens in north DeKalb County, including in Brookhaven, Dunwoody, Tucker, and Smoke Rise, Ga. 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. Boyer’s term of office was to expire in 2016; however, Boyer resigned yesterday.

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 Advisor. In fact, 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 Advisor. Based on requisition requests from Ms. Boyer, DeKalb County mailed approximately 35 checks to Advisor for consulting services that were never performed. In total, DeKalb County paid Advisor more than $78,000, believing that legitimate services had been performed for the county.

After being paid by DeKalb County, Advisor funneled approximately 75% of the money received from DeKalb County into Ms. Boyer’s personal bank account.  Between September 2009 and November 2011, Advisor deposited more than $58,000 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.

Elaine Boyer, 57, of Stone Mountain, Ga., was charged via Criminal Information with conspiring to committed mail fraud and with wire fraud.  She is scheduled to plead guilty at 3:00 p.m., on September 3, 2014, before U.S. District Court Judge Orinda D. Evans.

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

This case is being investigated by 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/.

ATLANTA - Michael Awiti has been sentenced to six years and three months in prison for filing fraudulent tax returns using the stolen identities of children.

“This defendant used the stolen identities of children in his scheme to steal from the United States Treasury,” said United States Attorney Sally Quillian Yates.   “This office in collaboration with our law enforcement partners will continue to do our best to stop these fraudulent schemes and protect the public from identity theft.”

“Identity thieves are becoming more devious, creative, and conniving,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS-Criminal Investigation.  “They steal our identities, steal government money and prey upon innocent citizens. 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.”

According to United States Attorney Yates, the charges and other information presented in court: From 2010 through 2012, Awiti owned and operated Fidelity Financial, LLC in Smyrna, Ga.  During that time, Awiti engaged in a scheme to defraud the Department of the Treasury by filing over 500 fraudulent income tax returns using stolen identities. This type of scheme is commonly called stolen identity refund fraud. Awiti used the stolen personal identification information of hundreds of victims, along with fake wage and withholding information, to prepare fraudulent tax returns.  The majority of the identity theft victims were children.  Awiti sought fraudulent refunds totaling approximately $2,678,725.35; however, the IRS rejected some of the claims, resulting in an actual loss to the U.S. Treasury of $1,783,316.00.    

Awiti, 29, of Smyrna, Ga., was sentenced by U.S. District Court Judge Charles A. Pannell, Jr. to six years, three months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $1,783,316.00.  Awiti was convicted on these charges on May 5, 2014, after he pleaded guilty.

This case was investigated by Special Agents the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation.  If you believe you may be a victim of tax return-related identity theft please contact the IRS Identity Protection Specialized Unit at 800-908-4490, extension 245 (Mon. - Fri., 7 a.m. - 7 p.m. local time).

Assistant United States Attorney Jeffrey Brown prosecuted the case.

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

ATLANTA –Mauricio Warner has been sentenced to 20 years in prison for using the identities of thousands of unsuspecting individuals to file federal tax returns claiming over $5 million in bogus refunds. 

“Lengthy prison sentences wait for the growing number of criminals who use other people’s personal information to file phony tax returns,” said United States Attorney Sally Quillian Yates.  “Mr. Warner deceived over 5,000 victims to get his hands on their names and Social Security numbers, and then used their information to steal over $5 million in fraudulent tax refunds.  He will now spend years behind bars and have to pay back his ill-gotten gains.  As this sentence shows, tax fraud and identity theft are crimes that do not pay.”

“IRS Criminal Investigation will remain proactive in the investigation of individuals who engage in stealing the identities of innocent people,” said Veronica F. Hyman-Pillot, Special Agent in Charge, Internal Revenue Service-Criminal Investigation. “We will continue to utilize every tool available to investigate those who victimize members of our community and innocent taxpayers for their own personal gain.  As the defendant in this case has learned, stealing from the American people will not be tolerated.”

According to United States Attorney Yates, the charges and other information presented in court:  From approximately January 2011 to April 2012, Warner filed over 5,000 false tax returns using the names and Social Security numbers of unsuspecting victims.  Victims were told they could submit an application for an “Obama stimulus payment” or “Free Government Money” by providing their names and Social Security numbers.  In addition to word-of-mouth marketing, Warner used toll-free telephone numbers to collect victims’ personal identifying information.  He then used the victims’ names and Social Security numbers to claim millions of dollars in fraudulent refunds.  On the returns, Warner claimed false income amounts and student credits to generate the bogus tax refunds, and directed the IRS to pay the refund amounts to bank accounts he controlled.  The victims did not know tax returns were being filed in their names.

Warner, 38, of Smyrna, Ga., was sentenced by United States District Judge Charles A. Pannell, Jr. to 20 years in federal prison and three years of supervised release, and ordered to pay $5,041,869  in restitution.  The Court also ordered the forfeiture of seven bank accounts controlled by Warner that contain $4,185,455.31 in funds derived from or involved in this scheme.  On April 18, 2014, a jury convicted Warner of 16 counts of wire fraud, 16 counts of aggravated identity theft, 16 counts of filing false claims, and two counts of money laundering.  Numerous victims testified at trial.  Warner was taken into custody after the verdict.

This case was investigated by Special Agents of the Internal Revenue Service– Criminal Investigation.  If you believe you may be a victim of tax return-related identity theft please contact the IRS Identity Protection Specialized Unit at 800-908-4490, extension 245 (Mon. - Fri., 7 a.m. - 7 p.m. local time).             

Assistant United States Attorneys Stephen H. McClain and Thomas J. Krepp prosecuted the case.

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 HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.

ATLANTA – Annamalai Annamalai, a/k/a Dr. Commander Selvam, a/k/a Swamiji Sri Selvam Siddhar, the former leader of the now defunct Hindu Temple of Georgia, was convicted of 34 felony counts following a two-week jury trial.

“This defendant traded on his perceived religious authority and spiritual powers to cheat the faithful who believed in him,” said United States Attorney Sally Quillian Yates.  “The jury saw through his deception, and he is being held accountable for his fraud.”

“Annamalai Annamalai clearly took advantage of his religious standing in the community as well as the individuals who respected and revered him” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS-Criminal Investigation. He used deceit and fraud, to circumvent the bankruptcy courts and to collect money for his own personal benefit. Today’s verdict should send a strong message that this will not be tolerated.”

According to United States Attorney Yates, the indictment, and other information presented in court:  Annamalai generated income through the Hindu Temple of Georgia (“the Hindu Temple”) by charging fees to his followers in exchange for providing spiritual or related services.   In a typical transaction, a follower agreed to purchase a particular service for a communicated price, and provided a credit card number by telephone to guarantee payment.  Annamalai caused the followers’ credit card numbers to be charged on multiple occasions, in excess of the agreed amount and without authorization.  If the followers disputed the charges with their respective credit card companies, Annamalai submitted false documentation to the credit card companies in support of the unauthorized charges, which formed the basis for his conviction on bank fraud charges. 

The income generated by the Hindu Temple through these credit card charges was used to fund the personal lifestyle of Annamalai and his family, who owned or controlled numerous homes and real properties, luxury vehicles, and foreign bank accounts in India.  Annamalai was convicted of willfully filing a false tax return for the 2007 year, for failing to disclose his financial interest in foreign bank accounts held in India.

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

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

Finally, Annamalai was convicted of conspiring with his spouse and co-defendant, Parvathi Sivanadiyan, and others to conceal the arrest of co-defendant Kumar Chinnathambi.  Chinnathambi was later arrested and pled guilty to conspiracy to commit bankruptcy fraud on July 17, 2014.  He is scheduled to be sentenced on October 24, 2014, at 10 a.m. before District Court Judge Timothy C. Batten, Sr.  Sivanadiyan is awaiting trial.

Annamalai was convicted of bank fraud offenses, filing a false tax return, bankruptcy fraud offenses, money laundering, obstruction, false statement offenses, and conspiring to conceal a person from arrest.   He is scheduled to be sentenced on November 13, 2014, at 10 a.m. before District Court Judge Timothy C. Batten, Sr.

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

Assistant United States Attorneys Steven D. Grimberg and Samir Kaushal 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 - Frederick Todd Anderson and David Starks have been sentenced for an attempted robbery of a business where the business owner was carjacked, abducted, pistol-whipped, and left lying in a stream behind an abandoned house.  A third defendant, Deshawn Antoine Mackey, was sentenced previously.

“This was a terrifying and horrific crime that left the victim with lasting injuries. No one should suffer like this victim,” said United States Attorney Sally Quillian Yates.  “The defendants struck the victim, stole his car, and beat him to get his ATM PIN number before they finally left him for dead in a stream behind an abandoned house.   The lengthy prison sentences the court imposed on Anderson and Starks today are warranted by the savagery of this crime.”   

“These individuals acted in a cold and callous manner with little regard for the life of the victim, and today, justice has been served,” said Acting Special Agent in Charge Ryan L. Spradlin, who currently oversees Homeland Security Investigations in Georgia and the Carolinas. “This case highlights the effective collaboration between federal and local law enforcement agencies to ensure that violent criminals are put behind bars.”

“The victim and the community deserve safety and justice,” said Clayton County Police Chief Greg Porter.  “We will continue to work hard as everyone in this case did, to ensure justice is served for the victims, and criminals are captured and investigated. Safety is paramount for the Clayton County community. We appreciate the partnerships that existed with this particular investigation.”

According to United States Attorney Yates, the charges and other information presented in court:   On March 11, 2013, the three federal defendants – Anderson, Starks, and Mackey – along with two minors who are being prosecuted by the state, jumped the victim as he walked from his vehicle to his office in College Park, Ga. to begin his workday at a shipping company located near Hartsfield-Jackson airport.  The robbers took his wallet, wedding ring, and car keys, and Anderson instructed the minors to take the victim’s car.  The victim was then forced into the backseat of the robbers’ vehicle, where he was repeatedly beaten by Anderson until he provided his ATM PIN number.  Video surveillance captured Starks and Mackey going to several ATM machines to withdraw money from the victim’s account. 

At one point, the victim told the robbers that he had $5000 back at the business location, hoping that police would have already responded to that location.  The robbers went back to the office parking lot with the victim, but left when they saw police nearby.  From there, they drove the victim to an abandoned house, forced him into the backyard, and pistol-whipped him until they left him for dead, lying in the stream.  The victim managed to make it to the street, where a passerby stopped and called police. The victim, who spoke at the sentencing hearings, told the court that he believed that he was going to be killed and that even though he suffered some permanent injury from the beating, he is back at work.

Frederick Todd Anderson, 26, of Riverdale, Ga., has been sentenced to 19 years, 7 months in prison to be followed by five years of supervised release, and ordered to pay restitution in the amount of $8,060.  David Starks, 30, of College Park, Ga., has been sentenced to eleven years, eleven months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $8,060.  Both Anderson and Starks were assessed a fee of $300.  He was convicted on these charges on May 2, 2014, after he pleaded guilty.  Deshawn Antoine Mackey, 19, of Riverdale, Ga., was sentenced earlier to five years in federal prison.

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

Assistant United States Attorney Kim S. Dammers prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the 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 - Radric Davis, a/k/a Gucci Mane, has been sentenced to three years and three months in federal prison on firearms charges.

“Davis has a long history of violence and of illegally possessing and using guns,” said United States Attorney Sally Quillian Yates.  “One of our highest priorities is to remove violent repeat offenders from our streets so that our neighborhoods and cities are safer.”

“This sentence is a direct message to criminals that ATF and our law enforcement partners are observant and will not allow violations of our laws to go unpunished, regardless of celebrity status,” said Acting Special Agent in Charge Ray Brown. “ATF is committed to utilizing the frontline strategy and working with partners to prevent violent crime and ensure that violators are prosecuted and removed from our streets.”

“The proliferation and use of guns by criminals has wreaked havoc on the streets of Atlanta for far too long,” Atlanta Police Chief George Turner said. “I hope this sentence sends a strong message that we simply will not tolerate this type of irresponsible, criminal behavior from anyone, regardless of who they are.”

According to United States Attorney Yates, the charges and other information presented in court: On Sept. 14, 2013, the Atlanta Police Department received a call from a concerned citizen and acquaintance of Davis, who told police that the defendant was acting violent and had a handgun.   When police arrived, they found Davis pacing the street, smelling strongly of marijuana, waving a loaded Glock 40 caliber handgun, and making threatening comments.  Just two days earlier, police had been called to a different location in DeKalb County, where they found Davis with a different firearm, making threatening comments.

Radric Davis, 34, of Atlanta, Ga., was sentenced to three years, three months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $5,000.  He was also ordered to forfeit all firearms listed in the indictment.  Davis was convicted on these charges on May 13, 2014, after he pleaded guilty.
As part of the plea agreement and the Court’s sentence, Davis will seek mental health treatment once he is released from prison. 

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

Assistant United States Attorney Kim S. Dammers prosecuted the case.

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