Northern District of Georgia

GAINESVILLE, Ga. - Christopher Castleberry has been sentenced to one year and six months in prison after pleading guilty to stealing his children’s Social Security Survivor’s benefits.

 “This defendant stole his sons’ benefits and left them to be raised by their maternal grandparents while he continued to receive and spend their money,” said United States Attorney Sally Quillian Yates.  “We hope that this sentence gives the boys a small measure of comfort to know that the defendant will answer for his crime against them.”

According to United States Attorney Yates, the charges and other information presented in court: The defendant became the representative payee for his two minor sons’ Title II Survivor’s benefits after his wife died in 2001.  In 2009, the children moved in with their maternal grandparents and the defendant continued to receive their benefits.  The defendant refused to sign the appropriate paperwork that would have allowed the grandparents to enroll the boys in high school.  Because of the defendant’s refusal, the boys were unable to attend or finish high school.  The defendant did, however, complete paperwork falsely swearing to the Social Security Administration that the boys continued to reside with him and that he spent their benefits on their care and support.

Castleberry, 49, of Albany, Ga., has been sentenced to one year and six months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $46,200.  Castleberry pleaded guilty to these charges on June 2, 2014.

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

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

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

ATLANTA - Former Fulton County Deputy Sheriff Reginald Warren has been sentenced for demanding bribe payments from security officers he scheduled to work at the City of Atlanta's public swimming pools.

“Mr. Warren’s conviction and sentence are a reflection of our commitment to make sure those who work within the law enforcement community respect and keep the public’s trust,” said United States Attorney Sally Quillian Yates.  “This former deputy sheriff used his position and badge to extort kickbacks from workers contracted by the City of Atlanta to make the pools safe for its citizens and, consequently, betrayed the people he promised to help.” 

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI remains committed to identifying, investigating, and presenting for prosecution those law enforcement officers who would sell their badges for personal gain and today's sentencing reflects that commitment.  The FBI, in carrying out its public corruption mandate, asks that the public report such activity to their nearest FBI field office.”

According to United States Attorney Yates, the charges and other information presented in court: During the summer of 2011, while Warren was employed as a deputy with the Fulton County Sheriff’s Office, he contracted with the City of Atlanta to coordinate and supervise security at the city’s public swimming pools.  In that capacity, Warren hired a number of security officers and scheduled them to work various shifts at pools located throughout the city.  Soon after the officers were hired, Warren demanded payments from at least three officers in exchange for continuing to schedule them for more work.  Over a three-month period, Warren accepted thousands of dollars in kickbacks from the officers which he pocketed for himself. 

Warren, 50, of Covington, Ga., was sentenced to one year, three months in federal prison, to be followed by supervised release for two years.  He pleaded guilty on May 6, 2014. 

This case was investigated by the Federal Bureau of Investigation.

Assistant United States Attorney Brent Alan Gray prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the 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. - Jessica Regas has been sentenced for falsifying government grant applications and fraudulently obtaining $600,000 in government anti-drug grant funds. 

 “Regas stole over $600,000 in grant funds intended to fight youth substance abuse,” said United States Attorney Sally Quillian Yates.  “Rather than steering young people away from drug abuse, she lined her own pocket.  Not only did the federal government lose grant funds, but those intended to benefit were cheated as well.”

“Jessica Regas was greedy and she manipulated the grant process to steal federal funds needed for substance abuse prevention,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta.  “Grant fraud is a priority for the Office of Inspector General and we will continue to work closely with our law enforcement partners to identify individuals who steal crucial grant funds and victimize taxpayers.”

“Ms. Regas used deceit and fraud, to obtain money that she was not entitled and used the money for her own personal benefit”, stated Veronica F. Hyman-Pillot, Special Agent in Charge, Internal Revenue Service Criminal Investigation.  “This sentence is a message to others that there are consequences for submitting fraudulent information to an agency of the United States Government.”

“Our team did an outstanding job coordinating local and federal agencies to bring swift justice.  We will remain vigilant identifying, investigating and prosecuting crimes of this nature,” said Forsyth County Sheriff Duane K. Piper.

According to United States Attorney Yates, the charges and other information presented in court: Regas and her husband operated a private business named the “Georgia Martial Arts Foundation,” in Cumming, Ga.  Beginning in 2004, Regas, acting on behalf of the Georgia Martial Arts Foundation, applied for a federal grant from the U.S. Department of Health and Human Services, Substance Abuse and Mental Health Services Administration (SAMHSA).  The grant required grantees to coordinate a coalition of members from at least 12 community sectors, including, but not limited to law enforcement agencies, media, religious and fraternal organizations, and schools.  The grantee was required to, among other things, run coalition meetings that focused on substance abuse among youth, maintain minutes from those meetings, and certify that the grantee had obtained non-federal funding. 

The purpose of the grant is to reduce substance abuse among youth; help community coalitions strengthen collaboration; enhance inter-governmental communication and coordination; enable communities to conduct data-driven research-based prevention planning; and provide communities with technical assistance, guidance, and financial support.  Georgia Martial Arts Foundation received such a grant on an annual basis from 2004 through 2013.  Georgia Martial Arts Foundation was designated as the grantee in charge of a coalition named the “Drug Free Forsyth Coalition.” 

Regas submitted numerous annual continuation applications to SAMHSA with materially false statements, including that the “Drug Free Forsyth Coalition” had representatives from the 12 required sectors of the community, had substantial involvement from volunteer leader or members, and could be sustained as an ongoing concern with non-federal financial support.  In fact, the “Drug Free Forsyth Coalition” never had representatives from the 12 required sectors of the community, rarely held meetings, and lacked the required non-federal matching funds.

Beginning in 2011, the “Georgia Martial Arts Foundation” ceased to exist.  Despite the fact that the “Georgia Martial Arts Foundation” no longer existed, the Defendant continued to submit continuation applications to SAMHSA using the “Georgia Martial Arts Foundation” as the name of the grantee.  These renewal applications continued to have materially false statements.  Based upon these renewal applications, SAMHSA continued to send $125,000 a year to Regas. 

Regas, 62, of Cumming, Ga., was sentenced by U.S. District Judge William C. O’Kelley to one year, nine months in federal prison, three years of supervised release, and ordered to pay $600,000 in restitution.    

This case was investigated by the U.S. Department of Health & Human Services, Office of Inspector General, Internal Revenue Service Criminal Investigation, and Forsyth County Sheriff's Office.

Assistant United States Attorney Thomas J. Krepp prosecuted the case.

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

ATLANTA –Tracey Cota and Gary Lang have pleaded guilty to conspiracy to violate the Anti-Kickback Statute by paying and receiving illegal remuneration in exchange for Medicaid patient referrals to hospitals in the Atlanta area and on Hilton Head Island, S.C.  

“Our federal health care programs depend on providers exercising independent judgment in the best interests of patients,” said United States Attorney Sally Quillian Yates.  “These illegal referral arrangements resulted in women being steered to deliver their babies at hospitals on the basis of Clinica’s and the hospitals’ financial self-interest, regardless of whether it was in the women’s best interest.”

“These medical executives enriched themselves by using uninsured pregnant women and newborn babies as commodities, whose health care could be bought and sold for kickbacks and bribes,” said Principal Deputy Assistant Attorney General Miller.  “Unlawful payments for patient referrals can lead to increased Medicaid costs, corrupt medical decision-making, overutilization of medical services, and unfair competition – and most importantly, insufficient or inadequate care for patients.  The Justice Department is committed to investigating and prosecuting those who illegally pay for patients.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s guilty pleas will hold two individuals who were in positions of trust and authority accountable for their participation in a criminal scheme in which decisions on patient care were driven by illegal monetary gain instead of the patients’ best interest. The FBI will continue to partner with HHS-OIG and the Department of Justice to ensure that the many facets of the health care industry operate as intended and are free from those who seek opportunity to illegally profit by manipulating federal programs designed to aid those in need.”

“It is unacceptable that health care providers would scheme to refer uninsured mothers about to deliver their babies to hospitals based on a kickback agreement designed to boost profits rather than based on who would provide the best health care to the mothers and newborns.  Our agency is dedicated to unearthing such illegal kickback schemes, which undermine the public’s trust in the medical profession,” said Special Agent in Charge Derrick L. Jackson, U.S. Department of Health and Human Services, Office of Inspector General’s Atlanta Regional Office.

According to United States Attorney Yates, the charges and other information presented in court:  Cota was the co-owner and chief operating officer of Hispanic Medical Management, Inc. d/b/a Clinica de la Mama (“Clinica”), a Georgia corporation that operated several medical clinics in the Atlanta, Ga., area and on Hilton Head Island, S.C.  These clinics specialized in the provision of prenatal care services to primarily undocumented Hispanic women.  Because of their immigration status, the women, who lacked other means of medical insurance, were ineligible for Medicaid coverage.  Georgia and South Carolina Medicaid, however, did cover and pay certain costs associated with their labor and delivery and the care of their newborns at hospitals, as well as the professional fees of the physicians providing labor and delivery services.  Lang was the Chief Executive Officer of an Atlanta area hospital that was enrolled as a provider in the Georgia Medicaid program.

Between July 2000 and July 2012, Cota conspired with executives from Atlanta area hospitals, including Lang, and from a hospital on Hilton Head Island, to compensate Clinica for the referral of Clinica’s patients to the hospitals. To accomplish this goal, the hospitals contracted with, and paid, Clinica to provide certain services, including translation services and Medicaid eligibility determination services, but the true purpose of the arrangements were to pay Clinica for patient referrals.  These referrals ultimately triggered Medicaid reimbursements of over $100 million to the hospitals. 

Cota, 50, of Dunwoody, Ga., and Lang, 58, also of Atlanta, Ga., were each charged in separate Criminal Informations on June 28, 2014, with one count of conspiracy to pay and receive remuneration in exchange for Medicaid patient referrals.  Sentencing has not yet been scheduled.

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

Assistant United States Attorney Sally B. Molloy and Assistant Chiefs Ben Curtis and Rob Zink with DOJ Criminal Division’s Fraud Section are prosecuting the case.

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

ATLANTA – Thirteen defendants, including nine former police officers, have been sentenced to federal prison this week for accepting thousands of dollars in cash payments to provide protection during staged drug deals that were part of a federal undercover operation.  

“This case sent shock waves through Georgia law enforcement offices, both local and federal,” said United States Attorney Sally Quillian Yates.  “Certainly, these departments are filled with dedicated officers who literally risk their lives every day to make our communities safe.  But this case revealed a troubling number of officers from a variety of law enforcement agencies who betrayed their oaths to protect and serve, taking cash from the very criminals they should have been arresting.”   

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “While the sentences in this extensive law enforcement corruption matter ends the careers of those law enforcement and correctional officers involved, it can serve as an opportunity to those many other law enforcement officers and personnel to re-dedicate themselves to the oaths of office that they took when they accepted the badge. It also serves as a reminder to the public that the FBI remains responsive to such allegations of police misconduct and corruption and will investigate and present for prosecution those involved.”

“The vast majority of law enforcement officers serve the public with honor and distinction,” said Acting Special Agent in Charge Ray Brown of the Atlanta ATF Field Office. “Officers like these unfortunately tarnish the badge of the committed men and women of law enforcement.  These individuals will now have to face the consequences for their deplorable actions.  ATF will remain on the frontline of preventing violent crime through the dynamic level of law enforcement cooperation with our partners.”

Seven defendants who have been sentenced were active law enforcement officers during the time when they protected drug deals.  Once the officers were arrested in February 2013, they were fired and are no longer police officers.  All pleaded guilty before a federal judge.  Those sentenced were:

• Kelvin Allen, 42, of Atlanta, Ga., an officer with the Atlanta Police Department, was sentenced to five years in prison to be followed by five years of supervised release;
• Dennis Duren, 32, of Atlanta, Ga., an officer with the DeKalb County Police Department, was sentenced to seven years in prison to be followed by five years of supervised release;
• Dorian Williams, 25, of  Stone Mountain, Ga., an officer with the DeKalb County Police Department, was sentenced to seven years in prison to be followed by five years of supervised release;
• Victor Middlebrook, 44, of Jonesboro, Ga., a Forest Park Police Department Sergeant, was sentenced to seven years in prison to be followed by five years of supervised release;
• Marquez Holmes, 45, of Jonesboro, Ga., a MARTA  Police Department Officer, was sentenced to five years in prison to be followed by five years of supervised release;
• Denoris Carter, 42, of  Lithonia, Ga., a Stone Mountain Police Department Officer, was sentenced to three years, one month in prison to be followed by five years of supervised release; and
• Federal Protective Services Officer Sharon Peters, 43, of Lithonia, Ga., was sentenced to three years in prison to be followed by five years of supervised release.

Also sentenced this week were two defendants who were former DeKalb County Sheriff’s Office jail officers at the time they protected the purported drug deals:

• Monyette McLaurin, 37, of Atlanta, Ga., was sentenced to six years in prison to be followed by five years of supervised release; and  
• Chase Valentine, 44, of Covington, Ga., was sentenced to two years, nine months in prison to be followed by five years of supervised release.

Also sentenced were four defendants who were not law enforcement officers, but who participated in the drug transactions:

• Elizabeth Coss, 35, of Atlanta, Ga., was sentenced to six months in custody to be followed by six months of home confinement, and five years of supervised release;
• Gregory Lee Harvey, 26, of Stone Mountain, Ga., was sentenced to nine years in prison to be followed by five years of supervised release;
• Alexander B. Hill, 22, of Ellenwood, Ga., was sentenced to five years in prison to be followed by five years of supervised release; and
• Jerry B. Mannery, Jr., 38, of Tucker, Ga., was sentenced to four years in prison to be followed by three years of supervised release.

           
According to United States Attorney Yates, the charges, and other information presented in court:  The undercover operation arose out of an ATF investigation of an Atlanta, Ga., area street gang in August 2011.  ATF agents learned from an individual associated with the gang that police officers were involved in protecting the gang’s criminal operations, including drug trafficking crimes.  According to this cooperating individual, the officers—while wearing uniforms, driving police vehicles, or otherwise displaying badges—provided security to the gang members during drug deals. 

Three individuals, while not law enforcement officers themselves, provided the cooperator with the names of police officers who wanted to provide security for drug deals.  Once these officers were identified, FBI and ATF agents arranged with the cooperator for the officers to provide security for drug transactions that were described in advance to involve the sale of multiple kilograms of cocaine.  The police officers, almost always wearing their uniform and displaying a weapon and occasionally in their police vehicles, patrolled the parking lots where the deals took place and monitored the transactions.  These transactions were audio and video recorded.

Specifically, the undercover investigation included the following transactions:

DeKalb County Police Department

Dennis Duren.  Between October 2011 and November 2011, then DeKalb County Police Officer Dennis Duren provided protection for what he believed were four separate transactions in the Atlanta area that involved multiple kilograms of cocaine.  Duren and a co-defendant accepted cash payments totaling $8,800 for these services.  During the transactions, Duren was dressed in his DeKalb County Police uniform and carried a gun in a holster on his belt, as he patrolled on foot in the parking lots in which the undercover sales took place.  Duren pleaded guilty to one of those deals, which occurred on November 1, 2011.    

Dorian Williams. Between January and February 2013, then DeKalb County Police Officer Dorian Williams provided protection for what he believed were three separate transactions in the Atlanta area that involved multiple kilograms of cocaine.   Williams and his co-defendant accepted cash payments totaling $18,000 for these services.  During the transactions, Williams was dressed in his DeKalb County Police uniform and carried a gun in a holster on his belt, and he patrolled the parking lots in which the undercover sales took place in his DeKalb Police vehicle.  Williams pleaded guilty to one of those deals that occurred on January 28, 2013.     

Stone Mountain Police Department

Denoris Carter.  Between April and September 2012, then Stone Mountain Police Officer Denoris Carter provided protection for what he believed were five separate transactions in the Atlanta area that involved multiple kilograms of cocaine.   For these services, Carter and his co-defendant accepted cash payments totaling $23,500.  For all five transactions, Carter wore his Stone Mountain Police uniform.  In four of the deals, he arrived in his police cruiser and either patrolled or parked in the parking lots in which the undercover sales took place and watched the transactions.  During the final transaction in September 2012, Carter was on foot, displaying a firearm in a holster on his belt, and walked through the parking lot in which the transaction took place while watching the participants.  Carter pleaded guilty to one of those deals that occurred on September 20, 2012. 

Atlanta Police Department

Kelvin D. Allen.  Between June and August 2012, then Atlanta Police officer Kelvin D. Allen provided protection for what he believed were three separate transactions in the Atlanta area that involved multiple kilograms of cocaine.   Allen and his co-defendant accepted cash payments totaling $10,500 for their services.  For two transactions, Allen dressed in his Atlanta Police uniform and carried a gun in a holster on his belt.  Allen patrolled on foot in parking lots in which the undercover sales took place and appeared to be monitoring the transactions.  Allen pleaded guilty to one of those deals that occurred on July 6, 2012.

MARTA Police Department

Marquez Holmes.  Between August and November 2012, then MARTA Police Department Officer Marquez Holmes provided protection for what he believed were four separate transactions in the Atlanta area that involved multiple kilograms of cocaine.   For these services, Holmes and a co-defendant accepted cash payments totaling $9,000.  During the transactions, Holmes was dressed in his MARTA Police uniform and carried a gun in a holster on his belt.  In two of the transactions, Holmes patrolled on foot in the parking lots in which the undercover sales took place and monitored the transactions.  During the other two deals, Holmes drove to the site in his MARTA police cruiser and parked next to the vehicles in which the undercover drug sale took place. Holmes pleaded guilty to one of those deals that occurred on November 8, 2012.

Forest Park Police Department

Victor Middlebrook.  Between October to December 2012, then Forest Park Police Sergeant Victor Middlebrook provided protection for what he believed were six separate drug deals in the Atlanta area, each involving multiple kilograms of cocaine.   For his services in the first four transactions, Middlebook accepted cash payments totaling $13,800.  During these transactions, Middlebrook wore plain clothes, but displayed his badge and a firearm in a holster on his belt.  He patrolled on foot in the parking lots nearby the vehicles in which the undercover sales took place and appeared to be monitoring the transactions.  Middlebrook pleaded guilty to one of those deals that occurred on December 7, 2012.

DeKalb County Sheriff’s Office

Monyette McLaurin.  In January 2013, former DeKalb County Sheriff Jail Officer Monyette McLaurin provided protection for what he believed were two separate drug transactions in the Atlanta area that involved multiple kilograms of cocaine.  For his services, McLaurin and a co-defendant were paid $12,000 in cash.  During a meeting to discuss future drug transactions, McLaurin falsely represented that he was a deputy employed by the DeKalb Sheriff’s office, even though his position as a jail officer ended in 2011. During the two transactions McLaurin was dressed in a DeKalb County Sheriff’s Office uniform with a badge, and he carried a gun in a holster on his belt.  McLaurin pleaded guilty to one of those deals that occurred on January 3, 2013.

Chase Valentine.  In January 2013, former DeKalb County Sheriff’s Jail Officer, Chase Valentine, helped McLaurin and another co-defendant, Gregory Lee Harvey, provide security for what he believed were drug deals.  Like McLaurin, Valentine falsely represented himself to be a DeKalb County Sheriff’s Deputy, even though his position as a jail officer ended in 2010.  Valentine provided security for one undercover drug transaction on January 17, 2013, during which he wore a DeKalb Sheriff’s Office uniform and a pistol in a holster on his belt.  Valentine pleaded guilty to that one deal, which occurred on January 17, 2013.

Gregory Lee Harvey.  In December 2012, Harvey falsely represented that he was a DeKalb County detention officer and protected what he believed were two multiple kilogram deals of cocaine while wearing a black shirt with the letters “SHERIFF” printed across the back.  After this, Harvey stated that he knew other police officers who wanted to protect drug deals, and in January 2013 he introduced McLaurin as one of these officers.  Harvey protected a total of seven separate transactions and pleaded guilty to one transaction, which occurred on December 17, 2012.

Federal Protective Services

Sharon Peters.  In November 2012, Sharon Peters, who was then a contract officer for the Federal Protective Services provided protection for what she believed were two separate transactions in the Atlanta area that involved multiple kilograms of cocaine.   For these services, Peters and a co-defendant accepted cash payments totaling $14,000.  For both transactions, Peters parked her vehicle nearby the cars where the sham drugs and money were exchanged, and watched the transactions.  Peters pleaded guilty to one of those deals that occurred on November 19, 2012.

Imposter Clayton County Police Officer

Alexander B. Hill.  Between December 2012 and January 2013, Alexander B. Hill falsely represented himself to be an officer with the Clayton County Police Department while providing security for what he believed were three separate drug transactions in the Atlanta area that involved multiple kilograms of cocaine.   During an initial meeting, Hill wore a uniform that appeared to be from Clayton Police, but during the transactions he wore plain clothes and, for at least the first deal, a badge displayed on his belt.  For these services, Hill received payments totaling $9,000 in cash.  Hill pleaded guilty to one of those deals that occurred on December 20, 2012.

The Recruiters

Jerry B. Mannery, Jr.  Mannery never presented himself as a law enforcement officer, but he introduced corrupt officers Carter and Peters to the informant, and coordinated the drug deals that those officers’ protected.  Mannery, along with one or more corrupt law enforcement officer, provided security for what he believed were ten separate drug transactions in the Atlanta area that involved multiple kilograms of cocaine. For these services, Mannery and his co-defendants received payments totaling over $30,000 in cash.  Mannery pleaded guilty to drug conspiracy for deals occurring between April 9, 2012 and February 1, 2013.  

Elizabeth Coss.  Like Mannery, Coss never presented herself as a law enforcement officer, but instead introduced corrupt officers Holmes and Williams to the informant.  Coss, along with one of the two corrupt law enforcement officers, provided security for what she believed were five separate drug transactions in the Atlanta area that involved multiple kilograms of cocaine. For these services, Coss and her co-defendants received payments totaling over $17,000 in cash.  Coss pleaded guilty to one drug deal that occurred on August 15, 2012.       

These cases were investigated by special agents of the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

Assistant United States Attorneys Kim Dammers and Brent Alan Gray prosecuted these cases.

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

ATLANTA - Maario Coleman and Angela Russell have been sentenced for stealing the identities of Emory University and University of Georgia students in order to apply for student loans. 

“Just as these law and medical students were graduating to embark on their careers, they found themselves victims of identity theft,” said United States Attorney Sally Quillian Yates.  “We encourage citizens to diligently review their credit reports and bank accounts to spot fraudulent activity as soon as possible.” 

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “This elaborate and aggressive scheme to defraud targeted not only those students at Emory University and the University of Georgia, but also Discover Bank and serves as an example of the harm that can be caused by several well placed individuals using their access and others’ personal information in this manner.  FBI Atlanta is proud of the role that its capable cyber trained investigators played in working with Emory University’s Police Department to interrupt this criminal scheme and to bring these individuals to justice.”

“We are proud of the efforts of our investigators and grateful for the cooperative assistance the FBI provided in bringing resolution to this situation,” said Emory Police Chief Craig Watson.

According to United States Attorney Yates, the charges and other information presented in court: Coleman obtained the names of over 100 members of the 2013 class of graduating law and medical students at Emory University and five law students at the University of Georgia.  After obtaining partial social security numbers and dates of birth for the students, he asked Russell to supply the remaining personal identifiers.  At the time, Russell had access to credit reporting databases through her employment.  Together, the defendants compiled students’ birthdates and social security numbers.  Using that information, Coleman then applied for over $400,000 worth of post-graduate bar exam study loans and medical residency loans through Discover Bank. 

In many cases, Discover required student transcripts before it would approve and fund the loans.  To facilitate approval of the loans, Coleman used the students’ personal identifiers to obtain passwords to Emory’s online portal, where he ordered transcripts and had them mailed to his associates.  The transcripts were then sent to Coleman, who forwarded them on to Discover.  Coleman also arranged for the loan proceeds to be deposited into bank accounts fraudulently opened in the victims’ names.  After the loans were funded, other associates of Coleman withdrew the funds via ATM.  The defendants obtained $52,000 worth of loans before the scheme was uncovered. 

Maario Coleman, 28, of Atlanta, Ga., pleaded guilty to computer fraud and aggravated identity theft on May 13, 2014.  He was sentenced by United States District Judge Thomas W. Thrash, Jr., to four years, nine months in prison, to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $52,000.  Angela Russell, 43, of Atlanta, Ga., was also sentenced by Judge Thrash to two years in prison to be followed by one year of supervised release, and was ordered to pay restitution in the amount of $26,000.  She pleaded guilty to aggravated identity theft on May 13, 2014.   

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

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/.

ROME, Ga., - Joshua James Geer has been sentenced to 30 years in federal prison for child pornography production, coercion of minors to engage in unlawful sex acts, and possession of child pornography.

“This defendant coerced children into engaging in sexual activity and forced them to send him photos of that activity,” said United States Attorney Sally Quillian Yates.  “He is the type of predatory monster parents fear when their children are on the internet.  He deserves every day of the sentence the court imposed.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Having this disturbing child predator off of our streets is not only a tremendous victory for those investigators and prosecutors working this matter, but for the victims involved and for those who would have become victims had Mr. Geer been allowed to continue with his cyber based criminal exploitation of minors.  The FBI will continue to provide significant investigative resources toward the investigation and apprehension of individuals such as Mr. Geer who choose to exploit and prey on children.”

According to United States Attorney Yates, the charges, and other information presented in court:  on or about February 18, 2013, Geer contacted N.B., a 17-year-old boy living in Illinois, through an on-line communication service.  Initially, Geer befriended the boy during their online chats.  But then Geer coerced N.B. to use a cellular telephone to take photographs of N.B. and his 11-year-old sister engaged in graphic sex acts.  Geer threatened to expose N.B. to others if the boy refused to send the images to Geer; so N.B. transmitted the images to Geer using an iPod computer device.  Investigators identified Geer through his chats with N.B., which revealed Geer’s telephone number.

Several months later, on June 20, 2013, Pinellas County, Fla., Sheriff’s Office Detective Jennifer Zinge (“Det. Zinge”) received a complaint made by V.O., a 16 year old girl.  V.O. told Det. Zinge that on June 19, 2013, she began chatting on line with a person who initially identified himself as a girl using the online profile “TNT.”  Federal agents subsequently identified “TNT” as Geer.   

During their online exchanges, Geer sent a photograph of a child who appeared to be a girl of about 4 years old to V.O.  The photograph depicted the child nude above her waist.  V.O. then attempted to end her online chats with Geer.  But when V.O. tried to terminate her contact with Geer, he sent a text message to V.O. in which he claimed that V.O. was in possession of child pornography.  In his message, Geer stated that if V.O. did not comply with his demands that he would report her to the police.  Geer forced V.O. to send him nude photographs of her using her cellular telephone.  V.O. did so.  The photographs depict V.O.’s pubic area and V.O. posed in various lascivious positions under Geer’s written instructions.

Investigators were able to identify Geer as the person corresponding with V.O. using an internet account, as well as his cellular telephone number.  FBI agents in Atlanta, Ga., learned that Geer had used the same telephone number to contact and demand pornographic images from N.B., the boy in Illinois. 

On June 20, 2013, FBI agents obtained an arrest warrant for Geer, as well as a warrant to search his home in Cartersville, Ga.   Federal agents seized an iPhone from Geer at the time of his arrest.  An examination of the device revealed that it contained more than 300 images of child pornography, including graphic images depicting infants.  Additionally, federal agents discovered more instances of Geer coercing minors to produce child pornography that he forced the victims to send him via the Internet, and that he distributed to others online.  During a search of Geer’s closet, federal agents also found a handwritten note detailing how to commit a rape, along with various items bearing the description, “kidnapping kit.”

Geer, 22, of Cartersville, Ga., was sentenced to 30 years in federal prison, to be followed by supervised release for life.  He must also register as a sex offender as a condition of his supervised release.  Geer pleaded guilty on May 22, 2014.

This case was investigated by the Federal Bureau of Investigations.

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 – Jae Jun Bae has been sentenced to one year and one day in prison for offering bribes to Doraville employees in exchange for a zoning modification.

“Bae tried to buy his way around zoning restrictions by offering bribes to Doraville employees,” said United States Attorney Sally Quillian Yates. “As anticipated, those employees reported Bae’s conduct and assisted law enforcement authorities to bring him to justice.  Bae opened his wallet looking to circumvent the law.  What he found was a felony conviction and a prison cell.”

“Doraville Police Department is dedicated to ensuring the integrity of the city government,” said Doraville Police Chief John King.  “Our message is don't bring your corruption or bribery attempts to Doraville or you will face prosecution.  We would like to thank the U.S. Attorney's office and the FBI for helping us maintain this integrity and ensuring the proper sentence for Mr. Bae.”

According to United States Attorney Yates, the charges, and other information presented in court:  Bae is the owner of Moon Lingerie, a lingerie business located in Doraville, Ga. In April 2012, Bae bought a commercial building located on Buford Highway in Doraville, Ga.  At the time of the purchase, the property was zoned for retail use and could not be used as a wholesale location as Bae wanted. In August 2012, Bae met with an employee of the City of Doraville and attempted to give the employee an envelope of cash, in an effort to have the Buford Highway property re-zoned. The employee did not take the envelope and reported Bae’s attempt to local law enforcement authorities.

In October 2013, Bae asked to meet with a member of Doraville’s Community Development Department. Based on the allegations from August 2012, the staff member (SM) reported Bae’s request for a meeting to law enforcement authorities and agreed to cooperate with them. Thereafter, the FBI and the Doraville Police Department conducted a series of undercover operations involving Bae.  In particular, on October 17, 2013, Bae met with the SM and an undercover officer (UC), who was posing as a member of Doraville’s Community Development Department.  During the meeting, Bae agreed to pay approximately $100,000 to have the Buford Highway property re-zoned to permit wholesale uses.  On October 18, 2013, Bae met with the UC and re-negotiated the price to obtain a wholesale re-zoning from $100,000 down to $70,000. On October 29, 2013, Bae made a $5,000 payment to the SM as a deposit to get the Buford Highway property re-zoned.  On the next day, Bae gave the UC a $3,000 payment, which the UC said would secure a vote in favor of Bae’s re-zoning application. On November 14, 2013, the FBI arrested Bae.

On April 3, 2014, Bae, 35, of Duluth, Ga., pleaded guilty to one count of honest services wire fraud.   He was sentenced to one year and one day in prison to be followed by three years of supervised release, ordered to pay a $1,000 fine, and to serve 200 hours of community service.

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

Assistant United States Attorney Jeffrey W. Davis and Special Assistant United States Attorney Erin Sanders 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 - Rahsaan Jackson Garth has pleaded guilty to a charge of health care fraud for faking the results of allergy tests that patients’ doctors had ordered.

“Garth put his own greed above the health and safety of citizens,” said United States Attorney Sally Quillian Yates. “This defendant seriously endangered the lives of children and adults in Atlanta when he faked their allergy test results and misled their doctors.”

“Such reckless conduct cannot be tolerated” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General in Atlanta.  “The blatant disregard for potential patient harm is inexcusable, especially when many of the patients affected were children and the elderly.  Today’s plea demonstrates the OIG’s commitment to bringing to justice those who put profit before patient safety.”

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

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

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

The sentencing for Garth, a/k/a R. Jackson Garth, 39, of Marietta, Ga., has not yet been scheduled.

This case is being investigated by the Department of Health and Human Services.

Assistant United States Attorney Mary L. Webb 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 - Woodrow Rudolph Dixon, Jr., and Cornelius Bernard Wilson each have been sentenced to federal prison for planning to rob a drug stash house while dressed as police officers. 

“These two planned to conduct home invasions while impersonating police officers,” said United States Attorney Sally Quillian Yates. “The safety of our citizens is a top priority for this office.  Their removal from our community will make Atlanta safer.”

“Individuals brazen enough to pose as law enforcement to commit armed robberies are clear and present dangers to our community,” said Special Agent in Charge Christopher Shaefer. “These sentences send an unequivocal message that this conduct will not be tolerated and provide more evidence of ATF’s commitment to combating violent crime through use of the Frontline strategy by utilizing all available resources to make our communities safer.”

Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division stated, “Drug dealing breeds violence and drug traffickers often commit acts of violence while carrying out their criminal activities. In this case, these dangerous criminals never had the opportunity to commit yet another robbery because of the dedicated efforts of all law enforcement agencies involved.”

According to United States Attorney Yates, the charges and other information presented in court: In May 2012, the ATF began investigating Dixon, based on information the agency received that Dixon was an experienced leader of a crew of men who conducted armed home invasion style robberies of drug stash houses in the Atlanta, Ga., area.  At that time, Dixon was planning to have his crew rob a man named “Tony,” a man who Dixon believed to be a high-level cocaine trafficker in the Atlanta area.  “Tony” was in fact an undercover narcotics Task Force Officer for the DEA, who Dixon had met when “Tony” tried to buy cocaine from Dixon as a part of an investigation.

As the ATF investigation into Dixon's armed robbery plans continued, the investigation revealed that Dixon, leading a crew, had carried out previous armed robberies of houses with the purpose of stealing cocaine or other drugs.  The ATF investigation later identified Wilson as a member of the crew Dixon assembled to rob “Tony.”   On June 21, 2012, the day of the planned robbery, Wilson and other members of the robbing crew met in advance to prepare for the robbery.  Dixon, who had left Atlanta, directed their actions over the telephone. 

To prepare for the robbery, the men dressed up in police gear, including police badges, and armed themselves with loaded firearms: a sawed-off shotgun, a .44 caliber revolver, and a .40 caliber semi-automatic pistol.  They then met with two undercover ATF agents who they believed were going to lead them to “Tony’s” stash house so that the crew could carry out the robbery. Instead, once the men met with the undercover agents, they were arrested.  Dixon, the leader of the crew, was arrested five days later after he returned to Atlanta. 

Both Dixon and another member of the robbing crew, Kirk Floyd, were convicted on November 25, 2013, after a week-long jury trial on federal charges of conspiracy to commit armed robbery, possession of firearms in connection with the armed robbery charge, and conspiracy to possess with intent to distribute cocaine for leading a crew of armed home invasion robbers in the Atlanta area who sought to rob what the crew believed to be a cocaine “stash house.”  Wilson, a member of the armed robbery crew, pleaded guilty on December 3, 2013, to federal charges of conspiracy to possess with intent to distribute cocaine and possession of a firearm in connection with the drug charge.     

Woodrow Rudolph Dixon, Jr., a/k/a Dro, 42, of Atlanta, Ga., was sentenced to 20 years in prison to be followed by six years of supervised release. Dixon was found guilty by a jury on November 25, 2013.  Cornelius Bernard Wilson, a/k/a Dog-man, 45, of Atlanta, Ga., was sentenced to 15 years in prison to be followed by five years of supervised release. Wilson pleaded guilty on December 3, 2013.  Kirk Floyd was found guilty by a jury on November 25, 2013, and is scheduled to be sentenced at a later date.

This case was investigated by the David G. Wilhelm OCDETF Strike force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration.

Assistant United States Attorneys Mary L. Webb and William Tolliver 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 - Advanced Power & Lighting (“APL”) and two of the company’s former officers and/or employees, Richard Lee Robertson and Greg Piccione, have agreed to pay a total of $780,000 to settle allegations that they deliberately underpaid workers on several federally funded projects covered by the Davis-Bacon Act, and then violated the False Claims Act by submitting false and fictitious payroll records to conceal their conduct. 

“The underlying False Claims Act lawsuit alleges that APL, Robertson and Piccione deliberately took advantage of workers, at a time when they were most vulnerable,” said United States Attorney Sally Quillian Yates.  “The settlement reflects the reality that individuals and entities that exploit workers will be held accountable by the government.” 

U.S. Department of Commerce Inspector General Todd Zinser commended the cooperative effort by the staffs of the U.S. Attorney’s for the Northern District of Georgia, the U.S. Department of Labor Office of Inspector General and the Commerce Department OIG to ensure APL was held accountable for funds it received under the American Recovery and Reinvestment Act of 2009.  Zinser also noted the importance of Federal Whistleblower laws that led to the revelations of APL underpaying its workers.

Special Agent in Charge Richard L. Walker of the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations stated, “This case is a great example of the OIG's work with its law enforcement partners to actively investigate fraud involving federal contracts, including the filing of false payroll records to facilitate cheating workers of their earned wages.”

The relevant conduct arose in connection with the American Recovery and Reinvestment Act of 2009 (the “Recovery Act”), which was enacted to stimulate the economy and create jobs by funding infrastructure projects.  Pursuant to a Recovery Act initiative known as the Broadband Technologies Opportunities Program (“BTOP”), the federal government provided the U.S. Department of Commerce with $4.7 billion to promote, through grants, the deployment of broadband infrastructure – e.g., miles of fiber-optic cable and supporting structures – throughout North Georgia. 

To effectuate the Recovery Act’s goal of providing high wage jobs, contractors on BTOP projects were required to comply with the Davis-Bacon Act, which requires that workers be paid not less than the applicable prevailing wage, which is set by the U.S. Department of Labor, and can be fulfilled by providing the applicable wage in all cash, or through a combination of cash and bona fide fringe benefits. 

In late 2010, APL was awarded a BTOP subcontract to assist with broadband projects in North Georgia, and the company repeatedly acknowledged – and promised to comply with – the projects’ Davis-Bacon Act requirements.  The False Claims Act lawsuit alleges that, despite these repeated promises, in order to increase their own profit margins and/or bonuses, APL, Robertson and Piccione – over an extended period of time – deliberately underpaid certain workers by approximately $10.00 per hour. 

The lawsuit further alleges that, to conceal the underpayments, APL, Robertson and Piccione submitted fictitious payroll documentation, which falsely represented that workers were receiving approximately $10.00 per hour in training and uniforms, which they erroneously characterized as fringe benefits.  In truth, however, no such training or uniforms were provided to workers, and these items did not even qualify as fringe benefits under the criteria set forth by the Wage and Hour Division of the U.S. Department of Labor. 

This civil settlement resolves a lawsuit filed by a former APL employee 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., v. Advanced Power & Lighting, Richard Lee Robertson and Greg Piccione, et. al., Civ. No. 1:12-cv-3825-AT (N.D. Ga. Nov. 1, 2012).  The claims settled in the civil settlement are claims only, and there has been no determination of liability.

The case was investigated by the United States Attorney’s Office for the Northern District of Georgia; the U.S. Department of Labor, Office of the Inspector General; and the U.S. Department of Commerce, Office of the Inspector General.

This matter was handled for the United States by Assistant United States Attorney Paris A. Wynn.

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 - Eric M. Martin, Mark Megalli, and Richard T. Posey have been sentenced to federal prison for their roles in insider trading conspiracies involving Carter’s, Inc. stock.

“Illegal insider trading undermines confidence in the nation’s stock markets.  Today’s sentences are a step towards restoring that confidence.  These sentences send a strong message to company insiders and investment industry professionals in this district and elsewhere that they are required to follow the same rules that govern regular investors, and that the consequences for failing to do so can be severe,” said United States Attorney Sally Quillian Yates.

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Those individuals who choose to ignore insider trading laws do so at the risk of becoming targets of federal investigations.  The FBI will continue to provide substantial investigative resources toward such insider trading activities with the primary goal of maintaining a fair and equitable stock market for all.”

According to United States Attorney Yates, the charges and other information presented in court:  Carter’s, Inc. is a major children’s clothing company headquartered in Atlanta, Georgia.  Carter’s is a public company registered with the U.S. Securities & Exchange Commission (“SEC”), and its common stock is listed on the New York Stock Exchange.

Martin was employed as Carter’s Director and later Vice President of Investor Relations between 2003 and March 2009.  In this capacity, Martin participated in and helped the company’s key executives prepare for Carter’s public disclosure of its quarterly and annual financial results at the end of each quarter or fiscal year.  These and other duties afforded Martin regular access to material, non-public information about Carter’s upcoming earnings releases and other significant developments and transactions.

On a consistent basis between early 2005 and his separation from Carter’s in March 2009, Martin disclosed material, non-public information about Carter’s upcoming earnings releases and other developments to a former Wall Street analyst identified by the government as “Cooperator Number 1,” for the purpose of making illegal insider trades.  Cooperator Number 1 repeatedly bought and sold Carter’s stock on the basis of this information, earning substantial illegal profits and illegally avoiding substantial losses.  Cooperator Number 1 also tipped others, including Titan Capital Management LLC, a New Jersey hedge fund that had retained him as an outside consultant.  Martin disclosed this and other material, non-public information in exchange for friendship, reciprocal stock tips about other public companies to which Cooperator Number 1 had access, and future business and networking opportunities.

After Martin separated from Carter’s in March 2009, Martin continued to obtain inside information in advance of Carter’s earnings releases and other events from Posey, who was his friend and former Carter’s co-worker.  Posey was employed as a Vice President of Operations for various Carter’s brands and divisions and later as Vice President of Operations for the company’s wholesale sales business from in or about July 2002 until his termination in January 2013.  Posey disclosed the information to Martin from early 2009 through July 2010 in exchange for friendship, reciprocal stock tips, and future business and networking opportunities.

Martin in turn traded on the information himself and also continued to provide the inside information to Cooperator Number 1 and others through July 2010.  Further, in or about September 2009, Martin began providing the inside information to several financial institutions and investment firms that hired him as an outside consultant, including multibillion dollar New York hedge fund Level Global Investors LP.  Martin’s contact at Level Global was Mark Megalli, who was employed as the portfolio manager for Level Global’s consumer sector.  Megalli in turn caused Level Global to execute multimillion dollar trades in Carter’s stocks based on the inside information received from Martin from September 2009 through July 2010.

Martin and Posey also traded in Carter’s stock for their own benefit on the basis of material, non-public information in advance of Carter’s earnings releases and other events during their employment with the company.  This trading took place during company-wide trading blackout periods that preceded the company’s quarterly and annual earnings releases, even though company policies prohibited company insiders from trading in Carter’s stock at those times.

Martin’s illegal trading and tipping of others between 2005 and 2010 resulted in over $7 million in insider trading gains and losses avoided for Martin and his downstream tippees.  Posey’s illegal trading and tipping of Martin between 2009 and 2010 resulted in over $5 million in insider trading gains and losses avoided.  Megalli’s illegal trading between 2009 and 2010 resulted in over $3 million in insider trading gains and losses avoided for Level Global.

• Martin, 44, of Roswell, GA, was sentenced to two years in prison to be followed by 3 years of supervised release, ordered to pay restitution in the amount of $950,000, and ordered to perform 80 hours of community service.  Martin was convicted on these charges on December 18, 2012, after he pleaded guilty.

• Posey, 53, of Duluth, GA, was sentenced to one year, three months in prison to be followed by 3 years of supervised release, ordered to pay restitution in the amount of $750,000, and ordered to perform 80 hours of community service.  Posey was convicted on these charges on June 19, 2013, after he pleaded guilty.

• Megalli, 42, of New York, NY, was sentenced to one year and one day in prison to be followed by 3 years of supervised release, ordered to pay restitution in the amount of $50,000, and ordered to perform 100 hours of community service.  Megalli was convicted on these charges on November 14, 2013, after he pleaded guilty.

A fourth defendant, Steven E. Slawson, 67, of Lebanon, New Jersey, was indicted by the grand jury on May 20, 2014.  Slawson, a co-founder of Titan Capital Management, is alleged to have traded on tips obtained from Cooperator Number 1 and later directly from Martin from early 2005 through July 2010.  The case has been assigned to U.S. District Judge Richard W. Story for trial.  A trial date has not yet been set.

The cases are being investigated by the Federal Bureau of Investigation.

Assistant United States Attorneys David M. Chaiken and Stephen H. McClain are prosecuting the cases.

The Atlanta Regional Office of the SEC has conducted a separate investigation into potential civil violations of the U.S. securities laws relating to insider trading in Carter’s stock.  In connection with its investigation, the SEC has filed civil enforcement actions against multiple individuals.

Carter’s, Inc. is cooperating in the investigation.

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 is 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 – Devon Campbell, a/k/a Wilmott Alvin Livingston, a former Jamaican police officer who illegally entered the United States and then became a U.S. citizen and a College Park police officer, was sentenced to ten months in prison for committing immigration fraud.

“For more than a decade, Campbell violated this country’s immigration laws and deceived this nation’s immigration authorities,” said United States Attorney Sally Quillian Yates. “We require honesty and integrity from our police officers, and Campbell’s fraud on the immigration system violated this trust.”

“The defendant used his fraudulently obtained U.S. citizenship to become a police officer in this country, making a mockery of the very laws he was sworn to uphold,” said Brock D. Nicholson, special agent in charge of Homeland Security Investigations in Atlanta. “U.S. citizenship is eagerly sought by millions of people across the world, and HSI special agents work hard to maintain the integrity of our system by identifying those like Mr. Campbell who seek to gain it through fraud.”

According to United States Attorney Yates, the charges, and other information presented in court:  In 2000, Campbell lived in Jamaica, where he had previously been employed as a police officer with the Jamaican Constabulary Force.  On November 7, 2000, Campbell left Jamaica and entered the United States using a Jamaican passport bearing the fabricated name Wilmott Alvin Livingston and a false date of birth.

While in the United States, Campbell lived under the Livingston alias. On April 19, 2001, Campbell (using the Livingston alias) married a United States citizen in Jonesboro, Ga.  Shortly thereafter, Campbell (under the Livingston name) petitioned to become a Lawful Permanent Resident. On August 13, 2004, U.S. immigration authorities granted the application and Campbell (under the Livingston name) became a permanent resident of the United States.

On October 15, 2007, Campbell, using the Livingston name and date of birth, filed an Application for Naturalization with U.S. immigration services.  Although the application required Campbell to list any previously-used names, Campbell marked that section with the letters “N/A,” meaning ‘Not Applicable.’ Campbell also signed the form under penalty of perjury using the fabricated name Wilmott Alvin Livingston. On April 11, 2008, Campbell (under the Livingston alias) became a naturalized U.S. citizen.  Later that month, Campbell applied for and was subsequently issued a U.S. passport. On the passport application, Campbell listed his false name and date of birth. Campbell has used his fraudulently-obtained passport to travel back and forth to Jamaica.

Two months after becoming a U.S. citizen, on June 12, 2008, Campbell (under the Livingston identity) and his wife divorced. Eight days later, Campbell (under the Livingston identity) married another woman.

Since 2011, Campbell has served as a police officer with the College Park Police Department.  In obtaining his Georgia Peace Officer Standards and Training certification, Campbell falsely claimed to be a naturalized United States citizen and submitted an unlawfully obtained Certificate of Naturalization.

On April 8, 2014, Campbell, 46, of Ellenwood, Ga., pleaded guilty to one count of Unlawfully Procuring Citizenship or Naturalization and one count of Using a Passport Secured by False Statements.   

As part of his conviction, Campbell’s United States citizenship has been revoked.  In addition, after completing his prison sentence, Campbell will be removed from the United States.

This case was investigated by Homeland Security Investigations.

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

Nida Used Fake Collection Agencies And Databases To Target Identity Theft Victims

ATLANTA - Apollo E. Nida, 35, of Atlanta, Ga., was sentenced today for conspiring to commit mail, wire and bank fraud in a complex fraud scheme which spanned over four years and harmed over 50 victims.

“Identity theft continues to be a focus for my office as thieves continue to refine devious schemes to exploit our citizens,” said United States Attorney Sally Quillian Yates.  “This defendant organized two separate fake collection agencies, used them to harvest data from databases like Equifax and LexisNexis, and then deployed that data in identity theft attacks tailored to the vulnerabilities and characteristics of each victim.”

“Today’s sentencing exemplifies impartial justice regardless of economic class or perceived celebrity status.  Nida’s sentence should be an eye opener for other like-minded criminals who scheme to steal victims’ identities, defraud them and ignore the consequences of their actions,” 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: Beginning in August 2009, Nida, 35, of Atlanta, Ga., and others obtained stolen checks by stealing them or buying them from other criminal associates.  The stolen checks involved in the scheme included United States Treasury Checks, as well as checks stolen from the pension fund of Delta Airlines.  Additionally, the conspirators obtained funds by filing fraudulent tax returns with the Internal Revenue Service and making fraudulent claims against the U.S. Department of Housing and Urban Development, and at least eleven states, all in the names of victims whose identities had been stolen. 

Many of these checks were mailed to a large network of mailboxes rented by the conspirators at UPS Stores in the Northern District of Georgia and throughout the nation, for eventual forwarding to the conspirators.  The conspirators also obtained fraudulent auto loans secured by vehicles that they had no ownership interest in whatsoever.  To convince banks to issue these loans, Nida and his conspirators created fake documents and websites appearing to belong to legitimate auto dealerships.

Once the conspirators obtained the stolen checks, they laundered them through numerous victim financial institutions.  Often, the conspirators laundered the checks by opening bank accounts in the names of the payees listed on the face of the checks.  This involved impersonating each payee and stealing his or her identity.  The conspirators prepared for these impersonations by researching their victims using databases like LexisNexis and Equifax, to which they obtained access through fake collection agencies they had opened as part of the scheme.  Sometimes, the conspirators negotiated checks by laundering them in bulk through accounts which appeared to belong to legitimate businesses, such as one in the name “Signature Tax Collections.”

The illegal conduct ended only when agents of the U.S. Secret Service confronted Nida and seized his laptop computer, pursuant to a search warrant, on September 13, 2013.

Nida has been sentenced to 8 years in prison to be followed by 5 years of supervised release.  U.S. District Court Judge Charles A. Pannell, Jr. also ordered Nida to pay restitution to the victims of his offenses, and scheduled a separate hearing to take place on July 17, 2014, to calculate the restitution amount.  Nida was convicted on May 6, 2014, when he pleaded guilty.

                This case was investigated by the United States Secret Service and the Georgia Governor’s Office of Consumer Protection.

                Assistant United States Attorney Alana R. Black 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 - Kevin S. Lahey has been sentenced to serve seven years and three months in prison after pleading guilty to possessing seven firearms while being an unlawful user of controlled substances. 

“The significant sentence imposed by the Court serves as a warning that illegal possession of a firearm will be taken seriously by the United States,” said United States Attorney Sally Quillian Yates.  “Here, federal and local law enforcement agencies were able to work together to avert what could have been a tragedy by identifying and arresting Kevin Lahey before he could use his weapons to harm others in the community.”

“ATF’s involvement in securing this sentence is a prime example of the successful use of federal laws to confront, engage and eliminate criminal activity by staying on the frontline of preventing violent crime,”  said ATF Special Agent in Charge Christopher Shaefer.  “Criminals must understand that there are serious repercussions for the illegal possession of firearms and that ATF and our law enforcement partners will contribute all necessary time and effort to ensure criminals are brought to justice.”

According to United States Attorney Yates, the charges and other information presented in court: On February 6, 2013, a man, later identified as Lahey, stole two silencers from a Lawrenceville, Ga., firearms dealer.  Three days later, police in Snellville, Ga., arrested Lahey in connection with a shoplifting incident at Wal-Mart where he allegedly attempted to steal two laser sights, a rifle bi-pod stand, and a holster.  Lahey resisted arrest when officers attempted to take him into custody.  Officers report that, during that scuffle, Lahey dropped a loaded handgun.  After his arrest, Lahey was released on bond on February 10, 2013.  As a result of this shoplifting arrest, Snellville police were able to identify Lahey as the individual who stole the silencers on February 6, 2013, and they notified the ATF.

A short time later, an ATF task force officer obtained a warrant for Lahey’s arrest and a search warrant for his residence.  On February 25, 2013, officers and agents from both the ATF and the Gwinnett County Police Department executed the search warrant.  During that search, investigators found one of the stolen silencers attached to a .22 caliber pistol.  They later returned and found the second silencer in the crawlspace underneath the home of Lahey’s parents.  Neither silencer was registered to Lahey in the National Firearms Registration and Transfer Record, as required by federal law.  Also during the search, investigators found multiple firearms - including three rifles and four handguns - in Lahey’s possession.  In addition to the firearms, agents seized over 10,000 rounds of ammunition, military-style and hunting knives, marijuana, bongs, drug pipes and other drug paraphernalia, and a body armor fragmentation protective vest. 

Lahey, 27, of Lilburn, Ga., has been sentenced to seven years, three months in prison to be followed by three years of supervised release.  He was indicted on federal firearms charges on May 21, 2013.  On December 2, 2013, Lahey pleaded guilty to the illegal possession of seven firearms while being an unlawful user of controlled substances.

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

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

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

ATLANTA - A federal judge has sentenced Buffy Drake to three years and nine months in prison for filing false tax returns that claimed over $2.5 million in bogus refunds. 

“This defendant stole millions of dollars from American taxpayers through her criminal conduct.  She is now going to federal prison as a result of her actions,” said United States Attorney Sally Quillian Yates.

“Return preparer fraud is like a contagious disease, it affects not only the preparer, but the individuals who have filed false information with Internal Revenue Service,” said Veronica F. Hyman-Pillot, Special Agent in Charge, IRS-Criminal Investigation. “Criminal Investigation is determined to stop these false tax refund schemes. It is our hope that this sentence will send a strong message that participation in refund fraud schemes does not pay and those who chose to participate will be prosecuted.”

According to United States Attorney Yates, the charges and other information presented in court: Drake operated a tax preparation business in Griffin named “Imagine That.”  While operating “Imagine That,” Drake filed hundreds of false tax returns that claimed millions of dollars in fraudulent refunds.  In total, from 2011 through 2012, Drake filed tax returns claiming in excess of $2,500,000 in fraudulent refunds.  Drake retained a substantial portion of the proceeds from this scheme.  In some instances, tax returns were filed without the permission of the individuals whose identities were used on the tax returns. 

Drake, 43, of Griffin, Ga., was sentenced to three years and nine months in prison and three years of supervised release, and ordered to pay over $2.5 million in restitution.   Drake pleaded guilty on March 5, 2014, to one count of wire fraud.

This case was investigated by Special Agents of the Internal Revenue Service‑Criminal Investigation with the assistance of the City of Griffin Police Department.

Assistant United States Attorney Thomas J. Krepp 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 - Paulette Bryant has been sentenced to three years in prison for obstructing and impeding the IRS’s collection of almost $3 million in payroll taxes that her business withheld from employee paychecks over a ten year period.

“Honest, hardworking citizens should be assured that employers or business owners who withhold payroll taxes from paychecks and then fail to pay those funds to the IRS will be prosecuted,” said United States Attorney Sally Quillian Yates. 

“The manipulation of the payroll system to steal income and evade taxes is a serious offense,” stated Veronica F. Hyman-Pillot, Special Agent in Charge with IRS Criminal Investigation. “This sentence is a vital element in maintaining the public confidence in our legal and financial system.”

According to United States Attorney Yates, the charges and other information presented in court: Bryant owned and operated a temporary employment staffing business with several locations in North Georgia.  Bryant’s business was responsible for withholding payroll taxes from employee paychecks and, along with quarterly filings, paying those taxes and her company’s share of employment taxes to the IRS. 

Between 1998 and 2009, except for brief periods during or relating to an IRS audit, Bryant’s business failed to make the required quarterly filings and to pay the IRS the payroll taxes owed by her employees and business. In 2001, the IRS audited her business and assessed Bryant a personal penalty of $1 million in unpaid payroll taxes going back to 1998.  Even after this audit and penalty, which went unpaid, Bryant and her businesses continued to fail to file with the IRS and to pay payroll taxes.  By 2009, the unpaid payroll taxes and penalty totaled $2,914,931.12.

Bryant used the funds that should have been paid to the IRS to operate her company and fund her personal lifestyle.  Although the operation of her business essentially remained the same during this period, Bryant formed and used new, overlapping corporate identities that had various names and that used various pseudonyms as corporate officers.  The effect of this was to delay and hinder the IRS’s efforts to collect the employment taxes that her business owed.  The business identities used by Bryant included Selective Employment Services, Inc. (formed in 2001), Corporate Staffing, Inc. (formed in 2002), Corporate Solutions Group, Inc. (formed in 2004), and Optimum Staffing Solutions Corporation (formed in 2009).

Bryant, 68, of Stockbridge, Ga., has been sentenced to three years in prison to be followed by 1 year of supervised release, and ordered to pay restitution in the amount of $2,914,931.12.  Bryant was convicted of obstructing and impeding the IRS’s collection of payroll taxes on October 9, 2013, after she pleaded guilty to an Information.

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

Assistant United States Attorney Douglas W. Gilfillan prosecuted the case.

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

ATLANTA - Michael Yedor and Paul Anderson have been indicted by a federal grand jury on charges that they participated in a long-running scheme to defraud Delta Air Lines of millions of dollars. Yedor was arrested in San Diego, Calif. on Saturday, June 21, 2014.

“The longevity and scope of the scheme to defraud Delta is simply astonishing,” said United States Attorney Sally Quillian Yates.  “The indictment is an important first step in finally bringing these defendants to justice after so many years of engaging in fraud.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI was not only uniquely positioned to investigate and present for prosecution this extensive case of fraud targeting Delta Air Lines, but also to coordinate the arrest of one of those individuals upon his return to the U.S.   The FBI would like to thank our many law enforcement partners for their assistance in this matter, particularly those involved with the apprehension of Mr. Yedor at San Diego, California.”

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

The indictment alleges that, from at least 2004 through 2013, Anderson was involved with Yedor in a scheme to defraud Northwest and, later, Delta, by submitting numerous false invoices on behalf of a company, Airborne Voice and Data, purportedly owned by Yedor. The invoices sought payment from the airlines for goods provided and services supposedly rendered by Airborne Voice and Data, when in fact, both Anderson and Yedor knew that Yedor’s company had not provided any such goods or services.

The indictment also alleges that Yedor sent the invoices to Anderson to be approved.  Anderson approved the fraudulent invoices, which caused the airlines to issue payments to Airborne Voice and Data.  In exchange for approving each of the invoices, Anderson received a portion of the proceeds of the fraud. The indictment alleges that Yedor and Anderson caused Northwest and Delta to issue approximately $22 million in payments to Airborne on the basis of the false invoices between 2004 and 2013.

Yedor, 62, of Los Angeles, Calif., and Anderson, 57, of Apple Valley, Minn., were indicted on June 10, 2014, and have each been charged with conspiracy to commit mail fraud and ninety-six counts of mail fraud.  The indictment was unsealed after Yedor’s arrest on Saturday, June 21, 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.

Delta Air Lines is fully cooperating with the investigation.

This case is being investigated by the Federal Bureau of Investigation.  The arrest of Michael Yedor involved the assistance of and the FBI’s coordination with several federal and local authorities in locating and interdicting Yedor’s motor yacht, including: U.S. Customs and Border Protection Office of Air and Marine; U.S. Coast Guard; U.S. Border Patrol; San Diego Regional Coordinating Mechanism (ReCoM); San Diego Harbor Police; and San Diego Joint Harbor Operations Center.

Assistant United States Attorneys Glenn D. Baker, Jamie L. Mickelson, and Jenny Turner are prosecuting the case.

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

ATLANTA – Abuse of pain medications like oxycodone continues to plague Georgia communities at epidemic levels and now accounts for six times more deaths than all of the traditional illegal drugs combined.  The United States Attorney’s Office in the Northern District of Georgia has enhanced its prosecution efforts on the prescription drug abuse problem as part of a broad effort to reverse this deadly trend. 

“The abuse of prescription drugs and its related criminal activity is a significant public safety problem in many Georgia communities - one we have made a central focus of our office,” said United States Attorney Sally Quillian Yates.  “This problem is too big to prosecute away and requires solutions from doctors, pharmacists, legislators, and public health officials.  But we are committed to prosecuting and punishing those who are the primary contributors to this problem.”

“Over the past decade Oxycodone and other opioids have risen to be the most abused and overdose related drugs in the State of Georgia,” said C. Richard Allen, Director of the Georgia Drugs & Narcotics Agency.  “Five of the top eight drugs found in overdose deaths are opioids. Of those eight, Oxycodone products are #2 on this list. Ten of the top twenty five most prescribed drugs are opioids. We applaud the U.S. Attorney's office and its efforts to help stop, or at least slow down, this deadly epidemic.”

In the past year, the U.S. Attorney’s Office has successfully prosecuted three cases that reflect the broad spectrum of criminal activity associated with prescription drug abuse. 

Most recently, nine of eleven defendants were sentenced for participating in a scheme to obtain and sell painkillers using forged prescriptions.   “Many of the defendants sentenced were themselves addicts, some of whom became addicted after receiving a lawful prescription for oxycodone,” said Yates.  “Some of them even engaged in further criminal behavior to feed their own addiction.   These criminal acts also perpetuated the addiction of others by putting the drugs on the street.  It’s a terrible cycle.”       

According to United States Attorney Yates, the charges and other information presented in court in the prosecution of eleven defendants:  Holly Worley forged prescriptions for oxycodone using the names of actual doctors.  The remaining ten defendants would then present the forged prescriptions at numerous pharmacies throughout the Atlanta and North Georgia area to obtain what appeared to be legitimately obtained pain medication.  Once the conspirators received the drugs, Worley and Jason Johns would deliver the drugs to others to have them sold on the streets.  Worley rewarded the co-conspirators for the participation with either cash or a portion of their oxycodone pills.

 All eleven defendants pleaded guilty to conspiring to possess oxycodone with intent to distribute, and many were sentenced by United States District Court Judge Orinda D. Evans on June 19 and 20, 2014:

•           Holly Noel Worley, 29, of Cuming, Ga., received a sentence of eight years in prison, to be followed by three years of supervised release;

•           Jason Cody Johns, 30, of Gainesville, Ga., received a sentence of eight years, seven months in prison, to be followed by three years of supervised release;

•           Shayna Marie Massara, 23, of Alpharetta, Ga., received a sentence of five years of probation with a condition of eight months of home confinement;

•           Kelly Webb Ardizone, 26, of Cumming, Ga., received a sentence of two years, three months in prison, to be followed by three years of supervised release;

•           Michael Ardizone, 28, of Cumming, Ga., received a sentence of one year in prison, in addition to receiving credit for an additional 18 months already served, to be followed by three years of supervised release;

•           Keva Lee Hamrick, 23, of Cumming, Ga., received a sentence of five years of probation;

•           Andrew Derek Johnson, 30, of Lawrenceville, Ga., received a sentence of two years in prison;

•           Tyler Starnes Newsom, 24, of Suwanee, Ga., received a sentence of two years, six months in prison, to be followed by three years of supervised release; 

•           James Cory Linder, 24, of Roswell, Ga., received a sentence of two years in prison.

James Brandon Sweatman, 27, and Brian Thompson Myers, 33, both of Cumming, Ga., are scheduled to be sentenced on July 7, 2014.

“This case demonstrates cycle of harm caused by the abuse of prescription drugs,” said U.S Attorney Yates.  “Through the combination of incarceration and substance abuse treatment, we hope to break this cycle so that the defendants can become productive members of society.”

Prescription drug abuse manifests itself in many different ways.  Falsifying prescriptions, theft, or just purchasing pills on the street are some of the more popular methods of illegally obtaining oxycodone.  However, many abusers of prescription drugs also obtain oxycodone from illegitimate pain clinics, known as “pill mills.” 

“Illegitimate pain clinics prey on so-called patients who are addicted to opiates,” said Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division.  “Some of the doctors who dispense these addictive analgesics often operate under the guise of a stethoscope and a white coat, when in actuality they are nothing more than drug traffickers.”

In one recent “pill mill” prosecution, Jason Cole Votrobek and Roland Rafael Castellanos were non-physician owners of the ‘Atlanta Medical Group’ (AMG) medical clinic in Cartersville, Ga., which served as a front for the mass distribution of addictive pain killers. 

“The defendants in this case preyed upon those addicted to prescription drugs in order to line their own pockets,” said Yates. 

In their respective capacities, Votrobek and Castellanos, along with Jesse Violante, financed the clinic and worked to procure and distribute oxycodone pills to addicts and distributors.   Votrobek, Castellanos, and Violante directed the clinic’s doctors to see as many patients as possible, and to prescribe as many oxycodone pills as possible, in order to generate mass profits.  Dr. James Chapman allegedly did so, however, without conducting sufficient medical examinations and, indeed, according to evidence produced at trial, was frequently incapacitated due to intoxication. Tara Atkins served as the office manager.  She filled out prescriptions for the doctor to sign, and the amounts of pills distributed to patients were excessive, and with unusual dosage patterns.

Evidence offered at trial established that the clinic was really a drug distribution operation with over 98 % of its patients traveling to the clinic from surrounding states, the majority from Kentucky and Tennessee.  Many of those visiting had obvious signs of being addicts.  The clinic engaged in unusual practices, like, permitting non-medical staff to assist with medical procedures, such as taking blood pressure, to maximize the number of patients seen.  Indeed, in 2011, the clinic was one of the ‘Top 15’ purchasers of oxycodone in the nation.  Votrobek and Castellanos made millions of dollars during the clinic's approximately one year of operation.  Votrobek and Castellanos established multiple bank accounts, many in third party names, to conceal the windfall profits.

Jason Cole Votrobek had previously been acquitted in Florida of similar charges stemming from his ownership of a Florida pain clinic.  During trial, the government offered evidence that Votrobek, 30, of Vero Beach Fla., Roland Rafael Castellanos, 34, of Hollywood, Fla., and Jesse Violante, 35, of Vero Beach, Fla., financed and operated the clinic. Tara Atkins, 36, of Cartersville, Ga., served as the office manager. Dr. James Chapman, 64, of Macon, Ga., served as the primary doctor. 

Both Votrobek and Castellanos were convicted on March 26, 2014, after a month-long jury trial on federal drug and money laundering charges for owning and operating the AMG pain clinic, and, on June 19, 2014, they were each sentenced to 15 years in federal prison.  Jesse Violante was sentenced to four years and four months in prison and Tara Atkins was sentenced to two years in prison.  Dr. James Chapman is presently awaiting trial.   

In another recent case, Gerald Young and Rodney Strachan were two Florida men who supplied large amounts of the prescription narcotic oxycodone to pill distributors in northwest Georgia.  They were sentenced to federal prison in February 2014. 

Young and Strachan stockpiled copious amounts of oxycodone pills, which they would then provide to John Gregory Alvarez and his co-conspirators on consignment.  Alvarez’s drug trafficking organization was part of a thirteen-person conspiracy that distributed oxycodone in northwest Georgia and laundered the proceeds of the illicit sales of the pills.  The organization obtained the vast majority of its pills from Florida.  Specifically, Alvarez, and later co-defendants that he recruited, would travel to Florida on a monthly basis to obtain prescription oxycodone painkillers from both Young and Strachan.    

Members of the Alvarez organization would sell the pills for a profit, and then reinvest the proceeds into the organization by using the funds to pay for the previous month’s supply of narcotics.  The reach of this organization’s illegal oxycodone distribution included not only the northwest Georgia area, but also extended into Tennessee, West Virginia, and Kentucky.  Investigators determined that this conspiracy was responsible for trafficking hundreds of thousands of oxycodone pills.

Young, 69, of Ft. Lauderdale, Fla., was sentenced to ten years, one month in prison to be followed by three years of supervised release.  Strachan, 58, of Pompano Beach, Fla., Strachan was sentenced to nine years in prison to be followed by three years of supervised release.  They were the last defendants to be sentenced for their roles in this oxycodone distribution ring based in Rossville, Ga.  For his role in leading the northwest Georgia drug trafficking organization, Alvarez was sentenced on October 21, 2011, to 21 years, ten months in prison to be followed by six years of supervised release. 

“The significant sentences imposed for Young and Strachan are another indicator of our office’s continued commitment to ending the illegal distribution of prescription painkillers in our community,” said Yates.  “In recent years, the abuse of oxycodone has risen to epidemic proportions, and fatal overdose rates continue to rise.  Anyone who is involved in the illegal acquisition and distribution of pain killers, including unscrupulous doctors, pharmacists, or clinic owners, is on notice that they will be found out and prosecuted.”

In addition to prosecuting criminal cases, the U.S. Attorney’s Office has conducted outreach events to spread the warning to Georgia communities about the dangers of prescription drug abuse and the need for treatment and services for those who become addicted to the substances.  In 2011, the office hosted a prescription drug summit at Georgia State University that brought together speakers from national and local law enforcement agencies, medical experts in prescription drug abuse, pharmacists, and substance abuse counselors, to explore the scope of the prescription drug abuse problem and steps to address the problem.  In 2014, the office hosted a second summit focusing on the rising dangers of synthetic drugs, convening law enforcement together with medical experts, educators, and university and school officials to publicize the devastating effects of these drugs and how we can best target the problem. 

The Worley case was prosecuted by Assistant United States Attorney Elizabeth M. Hathaway, and it was investigated by Special Agents of the Drug Enforcement Administration, the Forsyth County Sheriff’s Office, Dawson County Sheriff’s Office, and the Georgia Drugs and Narcotics Agency.

The Votrobek and Castellanos case was prosecuted by Assistant United States Attorneys G. Scott Hulsey, Cassandra J. Schansman, and Laurel R. Boatright, and investigated by the Georgia Bureau of Investigation, Drug Enforcement Administration’s Diversion Group, Bartow/Cartersville Drug Task Force, Georgia Drugs and Narcotics Agency, and the Internal Revenue Service-Criminal Investigation; with special assistance from the Tennessee Bureau of Investigation and the Kentucky State Police.

Assistant United States Attorney C. Brock Brockington prosecuted the Young and Strachan case, and the investigation was conducted by Special Agents of the Drug Enforcement Administration, officers of the Lookout Mountain Judicial Circuit Drug Task Force, and deputies of the Catoosa County Sheriff’s Office.

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 - Thomas W. Dickson has been sentenced for stealing over $300,000 from his law firm’s clients.

“When Dickson stole over $300,000 of his clients’ money, he violated the law,” said United States Attorney Sally Quillian Yates.   

According to United States Attorney Yates, the charges and other information presented in court: In December 2008, while employed with a large Atlanta, Ga., law firm, Dickson was retained by Tenants In Common (TIC), owners of commercial real estate purchased through DBSI Inc., an Idaho based company.  DBSI sold TIC investments or fractional ownership interests in commercial real estate to investors across the country.  In November 2008, DBSI filed bankruptcy and many of the investors lost their life savings.  In December 2008, several TIC property owners retained Dickson to represent their interests in the bankruptcy action.  In 2009, Dickson encouraged TIC owners to transfer rents and other income into his law firm’s trust account.

Between February 24, 2010, and January 6, 2012, Dickson fraudulently directed his law firm’s accounting department to unlawfully transfer over $300,000 from the law firm’s trust account to a checking account controlled by Dickson and his wife.  Dickson led the firm’s accounting department to believe that the funds were being transferred on behalf of TIC clients to pay legitimate third party expenses.  In March 2013, Dickson was disbarred by the Georgia State Bar.

Dickson, 53, of Boulder, Colo., has been sentenced by United States District Judge Willis B. Hunt, Jr., to 12 months and one day in prison to be followed by three years of supervised release, with the first six months of supervised release to be served in home confinement, 120 hours of community service, and ordered to pay restitution in the amount of $175,951.98.  Dickson pled guilty to wire fraud on August 14, 2013.

This case was investigated by the Federal Bureau of Investigation.

Assistant United States Attorney Jeffrey A. 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 - Jason Elledge, who schemed to obtain controlled substances from local pharmacies, has pleaded guilty to impersonating a federal officer, making false statements to law enforcement, and attempting to obtain fraudulent prescriptions.

“Elledge victimized several doctors with his prescription fraud scheme,” said United States Attorney Sally Quillian Yates.  “He used the doctors’ identities to call in fraudulent prescriptions and then, by pretending to be a DEA agent, extracted information from the doctors that he then used to avoid detection by law enforcement.  Despite Elledge’s efforts to hide his crimes, today he answered for them.”

Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division commented, “DEA is fully committed to tirelessly pursuing those who knowingly break the law by victimizing healthcare professionals with prescription fraud schemes.  Mr. Elledge’s criminal actions of prescription drug fraud, impersonating a federal officer and making false statements ultimately led to his demise. This successful investigation was built upon the collaborative efforts of a multitude of law enforcement agencies.”

According to United States Attorney Yates, the charges and other information presented in court: From January 2013 through November 2013, Elledge engaged in a scheme to illegally obtain controlled substances from local pharmacies and avoid detection by law enforcement.  First, Elledge selected certain Atlanta, Ga., area doctors to target.  Using those doctors’ identities, Elledge called in prescriptions to local pharmacies using various aliases as patient names.  The prescriptions typically would consist of 120 tablets of Lortab 10/500mg or Norco 10/325mg, both Schedule III controlled substances, and other non-narcotic drugs.  Elledge included non-narcotics in the prescriptions to avoid raising suspicion with the pharmacists that the prescriptions were fraudulent.

Elledge then called the offices of the doctors whom he had targeted and identified himself as DEA agent ‘Alan Velez’ or ‘Jason McDonald.’  He explained to the doctors’ staff that unknown individuals were using the doctors’ identities to call in fraudulent prescriptions to area pharmacies.  Elledge claimed that he was investigating the fraudulent prescriptions and needed ‘real time’ information from the doctors’ staff about calls from pharmacies seeking to verify prescriptions.  To that end, he instructed the doctors’ staff to contact him whenever they received calls from pharmacies seeking to verify prescriptions for individuals who were not patients of the doctors.  Elledge told the doctors’ staff that having this information would allow him to send a member of his team to the pharmacies to arrest the individual(s) who arrived to pick up the fraudulent prescriptions.

In reality, when the doctors’ staff contacted Elledge to report a verification call from a pharmacy about a fraudulent prescription and the prescription was one Elledge had called in, he knew to not go to that pharmacy to pick up that prescription because the pharmacy knew the prescription was fraudulent.  Attempting to pick up a prescription that the pharmacy had verified as fraudulent exposed Elledge to the risk of encountering law enforcement.

Several of the doctors’ offices Elledge targeted complied with his instructions because they initially believed Elledge was in fact a real DEA agent.

As part of this scheme, on August 1, 2013, Elledge attempted to pick up a fraudulent prescription for 120 tablets of Norco 10/325mg in the name of ‘Kenneth Mayes’ from a Target pharmacy in East Point, Ga.  On November 5, 2013, Elledge attempted to pick up a fraudulent prescription for 120 tablets of Lortab 10/500mg in the name of ‘John Coventa’ from a Walgreens pharmacy in Conyers, Ga.  On November 7, 2013, Elledge attempted to pick up a fraudulent prescription for 120 tablets of Norco 10/325mg in the name of ‘Sam(uel) Garcia’ from the Atlantic Station Target pharmacy.

On November 7, 2013, when DEA agents made contact with Elledge at the Atlantic Station Target pharmacy, he claimed that another individual, J.L.K., called in the fraudulent prescriptions for Lortab and Norco tablets to various area pharmacies using aliases; J.L.K. would direct him to visit the pharmacies J.L.K. contacted and pick up the fraudulent prescriptions; and Elledge would give 100 of the 120 Lortab and Norco tablets from each fraudulent prescription that he picked up to J.L.K., who would often barter the Lortab and Norco tablets for Oxycodone tablets.  Elledge later admitted to DEA agents that these statements were false and that J.L.K. was not involved in the scheme.

On March 18, 2014, Elledge, 40, of Atlanta, Ga., was indicted by a federal grand jury on one count of impersonating a federal officer, one count of making false statements to law enforcement, and three counts of attempting to obtain prescriptions by fraud.

The sentencing hearing is scheduled for September 4, 2014, at 10:30 a.m. before United States District Judge Charles A. Pannell Jr.,

This case is being investigated by the Drug Enforcement Administration.

Special Assistant United States Attorney DeLana M. Jones is prosecuting the case.

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

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the 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 - Jason Cole Votrobek and Roland Rafael Castellanos, owners of the “Atlanta Medical Group,” have been sentenced to 15 years in federal prison, respectively.  Both Votrobek and Castellanos were convicted on March 26, 2014, after a month-long jury trial on federal drug and money laundering charges for owning and operating a ‘pill mill’ pain clinic which served as a front for the mass distribution of addictive pain killers. 

"The abuse of pain medication has become epidemic and now accounts for six times more deaths than that of all of the traditional illegal drugs combined,” said United States Attorney Sally Quillian Yates.  “The defendants in this case preyed upon those addicted to prescription drugs in order to line their own pockets.  The abuse of prescription drugs and its related criminal activity has become a danger in many of our communities - one we have made a central focus of our office.  Today justice has been served.”

“This is a great illustration of the positive impact law enforcement has when local, state, and federal agencies work together,” said Vernon Keenan, Director of the Georgia Bureau of Investigation.  “The increasing abuse of prescription drugs is a significant problem in Georgia that the GBI will continue to address with our local and federal partners.”

Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division commented, “Pain clinics prey on so-called patients who are addicted to opiates. Some of the doctors who dispense these addictive analgesics often operate under the guise of a stethoscope and a white coat, when in actuality they are nothing more than drug traffickers. This successful investigation was a direct result of hard work put forth by all law enforcement agencies involved.”

“The sentences handed down today are a culmination of the hard work of numerous agencies and speak to the effort of the men and women with boots on the ground,” said Captain Mark Mayton, Commander of the Bartow-Cartersville Drug Task Force.  “This shows criminal prosecution was a success. To receive a conviction and sentencing is a testament to the job the men and women did making the case. This closure highlights the success interagency cooperation can produce. Nobody worked by the shape of their badge — they worked to solve a problem.”

“IRS Criminal Investigation is proud to contribute our financial expertise in an effort to halt the illegal sale and distribution of prescription drugs,” stated Special Agent in Charge, Veronica F. Hyman-Pillot. “We are committed to ‘following the money trail’ to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice.”

According to United States Attorney Yates, the charges and other information presented in court:  In May 2010, using information from the Bartow/Cartersville Drug Task Force, multiple agencies joined in an expanded investigation of  “Atlanta Medical Group,’ learning that the clinic, located in Cartersville, Ga., was prescribing pain pills outside the bounds of legitimate medical practice.

During trial, the government offered evidence that Jason Cole Votrobek, 30, of Vero Beach Fla., Roland Rafael Castellanos, 34, of Hollywood, Fla., and Jesse Violante, 35, of Vero Beach, Fla., financed and operated the clinic. Tara Atkins, 36, of Cartersville, Ga., served as the office manager. Dr. James Chapman, 64, of Macon, Ga., served as the primary doctor.  U.S. District Court Judge Robert L. Vining, Jr. sentenced Votrobek and Castellanos each to 15 years in federal prison.

In their respective capacities, Votrobek and Castellanos worked to procure and distribute Oxycodone pills to addicts and distributors and directed the clinic’s doctor to see as many patients as possible, and to prescribe as many Oxycodone pills as possible, in order to generate mass profits.  Dr. Chapman allegedly did so, however, without conducting sufficient medical examinations and, indeed, was frequently incapacitated due to intoxication. Atkins herself filled out prescriptions for the doctor to sign, and the amounts of pills distributed to patients were excessive, and with unusual dosage patterns.

Evidence offered at trial established that the clinic was really a drug distribution operation with over 98 % of their patients traveling to the clinic from surrounding states, the majority from Kentucky and Tennessee.  Many of those visiting had obvious signs of being addicts.  The clinic engaged in unusual practices, like, permitting non-medical staff to assist with medical procedures, such as taking blood pressure, to maximize the number of patients seen.  Indeed, in 2011, the clinic was one of the ‘Top 15’ purchasers of Oxycodone in the nation.  Votrobek and Castellanos made millions of dollars during the clinic's approximately one year of operation.  Votrobek and Castellanos established multiple bank accounts, many in third party names, to conceal the windfall profits.

Votrobek had previously been acquitted in Florida of similar charges stemming from his ownership of a Florida pain clinic.  Jesse Violante and Tara Atkins, who both previously pleaded guilty to charges related to their conduct at the clinic, will be sentenced on a later date.  Dr. James Chapman is presently awaiting trial. 

This case was investigated by the Drug Enforcement Administration’s Diversion Group, Georgia Bureau of Investigation, Bartow/Cartersville Drug Task Force, Georgia Drugs and Narcotics Agency, and the Internal Revenue Service-Criminal Investigation; with special assistance from the Tennessee Bureau of Investigation and the Kentucky State Police.

Assistant United States Attorneys G. Scott Hulsey, Cassandra J. Schansman, and Laurel R. Boatright prosecuted the case.

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

ATLANTA - Ephren Taylor, II, has been arrested on a federal indictment charging him and another defendant with defrauding investors across the country of more than $5 million.

“Mr. Taylor came into our community, promising hard-working citizens a way to make their retirement money go farther,” said United States Attorney Sally Quillian Yates.  “The investments he pitched proved to be worthless, along with his promises.”     

“This case demonstrates the wide-reaching effects of fraudulent investment schemes, its impact on innocent victims, our northern Georgia communities, and the importance of cooperation among our law enforcement partners to suppress this type of criminal activity," said Reginald Moore, Special Agent in Charge of the United States Secret Service Atlanta Field Office.

“Illegal activity involving the investment industry has brought financial ruin to many Americans,” stated Special Agent in Charge Veronica Hyman-Pillot, IRS Criminal Investigation. “The indictment of Mr. Taylor illustrates our commitment to pursuing those individuals who victimize investors, violate the public trust and enrich themselves financially at the expense of the investor.”

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.  The scheme allegedly defrauded hundreds of investors of more than $5 million nationwide.

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 is alleged to have 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 allegedly knew that the investments he was touting were not profitable and that investors were not receiving actual returns from their investments.

As part of the scheme, Taylor, 31, of Overland Park, Kan., encouraged investors to use self-directed IRAs to make their investments.  Many victims transferred their retirement savings to trust companies that acted as custodians for self-directed IRAs, expecting these funds to be used to fund the investments pushed by Taylor.

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

Taylor was indicted by a federal grand jury on June 10, 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 United States Secret Service and Internal Revenue Service Criminal Investigation.

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

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the 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 - Dwayne Tyrone Coggins and Michael Owens have been arraigned on federal charges for tipping off drug traffickers to police activity in the Griffin area.  Coggins and Owens were indicted by a federal grand jury on June 11, 2014.

“When called upon to assist the police, Coggins and Owens’ first instinct was to call the drug dealers to warn them," said United States Attorney Sally Quillian Yates.  “Now, they face federal charges for protecting drug dealers.” 

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Many of today’s criminal investigations are complex in nature and often involve other jurisdictions and the assistance of other agencies.  While the FBI values the partnerships of those agencies that provide us with so much assistance, the criminal conduct alleged in the federal indictment of these two Spalding County Firefighters cannot be tolerated.”

According to United States Attorney Yates, the charges, and other information presented in court:  Coggins has been employed by the Spalding County Fire Department since 1990 and, most recently, served as a Battalion Chief.  Owens is also employed by the Spalding County Fire Department as a firefighter.

Police regularly gathered at the Spalding County Fire Department before scheduled police activity such as serving arrest warrants.  In April and May 2014, both Coggins and Owens warned drug dealers about law enforcement activity in the area before it occurred.  They were aware of the police activity because they had been informed by law enforcement about the investigation or had seen officers gathering near the fire station before serving warrants.  Police became aware that Coggins and Owens were tipping off drug traffickers to law enforcement activities during the course of an on-going drug investigation. 

Dwayne Tyrone Coggins, 47, and Michael Owens, 37, of Griffin, Ga., were arraigned today before Magistrate Judge Alan J. Baverman.

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

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

Assistant United States Attorney Kurt R. Erskine is prosecuting the case.

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

ATLANTA – Steven L. Jackson has been sentenced today to 24 years and six months in prison for recidivist armed bank robber and brandishing a firearm during a crime of violence.

“Jackson terrorized the bank employees, forcing them to lie face down on the floor of the bank while he pointed a gun at them,” said United States Attorney Sally Quillian Yates.  “His long history of committing violent crimes merited the lengthy sentence that he received, and his removal from our community will make the Atlanta area a safer place.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The streets of our community will be much safer with today’s sentencing of Mr. Jackson as a career offender.  The FBI will continue its investigative focus toward such repeat offenders that plague our communities and burden our criminal justice resources that have to deal with them.”

According to United States Attorney Yates, the charges, and other information presented in court:  On Thursday, April 9, 2009, at approximately 8:20 a.m., Jackson entered BB&T Bank located at 6343 Roswell Road in Sandy Springs, Ga.  He entered the bank through a rear window prior to the bank opening for the day, but after employees had arrived.  Jackson placed tape on the glass of one of the rear windows of the bank and then broke the glass.  Once inside the bank, Jackson walked to the branch manager’s office and pointed a gun at him.  Jackson ordered the manager and two more bank employees to take him to the vault where he stole $16,180.30 in United States currency.  After taking the money, Jackson forced the employees to lie face down on the floor of the bank while he fled the scene.

Because Jackson has several prior convictions relating to robbery, he was sentenced as a Career Offender.  His prior convictions include the following:

• A May 2, 1986, sentence of four years of imprisonment for robbery, arising from an October 29, 1984, arrest;

• A July 30, 1999, sentence of twenty years of imprisonment for robbery, arising from an October 30, 1996, arrest; and

• An October 10, 1997, sentence of eight years of imprisonment for conspiracy to commit armed robbery, arising from a May 9, 1997, arrest.

Jackson was sentenced by United States District Court Judge Steve C. Jones to 24 years and six months of imprisonment, to be followed by five years of supervised release, and ordered to pay restitution in the amount of $16,180.30.  Jackson pleaded guilty on November 2, 2012, to the offenses of armed bank robbery, and brandishing a firearm during a crime of violence.

This case was investigated by the Federal Bureau of Investigation.

Assistant United States Attorney Richard S. Moultrie, 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 - Frederick Jenkins and Willie Jenkins have been arraigned on federal charges that they conspired to prepare and file false federal tax returns that claimed over $1 million in tax refunds. 

“Citizens trust that tax preparers will accurately prepare their returns,” said United States Attorney Sally Quillian Yates.  “Citizens also expect preparers to maintain the integrity of the tax system.  Tax preparers who abuse the system for their own financial gain will be investigated by the Internal Revenue Service and, where appropriate, criminally prosecuted.”

“IRS special agents work year round to investigate and root out dishonest return preparers and protecting taxpayer money is a matter IRS takes extremely serious,” stated IRS Criminal Investigation, Special Agent in Charge, Veronica F. Hyman-Pillot.   “It is also important to note that even if someone else prepares someone’s return, the taxpayer is ultimately responsible for all the information on the tax return. Therefore, choose your tax preparer carefully.”

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

Frederick Jenkins, 42, of Atlanta, Ga., and Willie Jenkins, 44, of Fairburn, Ga., were arraigned today before United States Magistrate Judge Linda T. Walker.  The Defendants were indicted by a federal grand jury on May 20, 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 Internal Revenue Service Criminal Investigation, and the Georgia Department of Revenue.

Assistant United States Attorneys Bernita B. Malloy 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 - Chenhsin Chan, a/k/a Paul Chan has been arraigned on federal charges of mail fraud, the introduction into interstate commerce of adulterated food, the knowing distribution of a listed chemical, and money laundering. 

“Chan is charged with marketing and selling dietary supplements that he knew contained ephedrine which the FDA has determined creates unreasonable risks when used for dieting,” said United States Attorney Sally Quillian Yates.  “By putting those unsafe products on the market, he put his customers at risk of illness.   Public safety is our priority.  We will protect our citizens and the marketplace through criminal prosecution, if necessary.”   

According to United States Attorney Yates, the charges, and other information presented in court:  Chenhsin Chan owned and operated The Wholesale Source, LLC, a company that marketed and sold dietary supplements, primarily through affiliated websites including www.thatswholesale.com and www.ephedrawholesale.com. 

From at least July 2005 through August 2012, Chan allegedly marketed and sold dietary supplements on his websites that contained ephedrine alkaloids.  In April 2004, the United States Food and Drug Administration (“FDA”) published a final rule declaring dietary supplements containing ephedrine alkaloids to be adulterated food because they present an unreasonable risk of illness or injury.  Chan was allegedly warned by FDA investigators in June 2005 that it was illegal to sell dietary supplements containing ephedrine, but he continued to do so. 

Chan’s websites allegedly made materially false and misleading claims concerning the use of ephedrine, such as that ephedrine has been approved by the FDA for treatment of any disease, and that ephedrine has “never been illegal.”  These false claims were allegedly designed to lure customers into believing that it was legal to purchase dietary supplements containing ephedrine, when it was not.  During the period of the scheme, Chan allegedly sold over $4.3 million in dietary supplements that were adulterated with ephedrine, including to customers in the Northern District of Georgia. 

Chan is also charged with money laundering for using proceeds from the alleged mail fraud scheme to purchase real property in New York for over $1 million in cash and a 2012 Mercedes Benz for over $50,000 in cash.  The indictment seeks criminal forfeiture of, among other things, the same real property and Mercedes Benz, as well as a 2005 Lamborghini Gallardo and over $666,000 in cash. 

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

This case is being investigated by the U.S. Food and Drug Administration Office of Criminal Investigations.

Assistant United States Attorneys Steven D. Grimberg and Michael J. Brown are prosecuting the case.

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

ATLANTA - The United States Attorney's Office for the Northern District of Georgia has reached a settlement agreement with Gwinnett College to resolve an investigation into allegations that it violated Title III of the Americans with Disabilities Act (“ADA”) by not allowing an individual who has HIV to fully participate in its programs and classes. 
           
“Despite years of education regarding HIV and AIDS, many people still encounter discrimination based on the stigma of this disability,” said United States Attorney Sally Quillian Yates.  “Our office will continue to devote resources to fight injustices for people with HIV.”

The settlement resolves allegations arising from a complaint filed with the United States Attorney's Office that Gwinnett College would not allow an individual with HIV to participate in its Medical Assistant Program. 

The Complainant applied for admission as a student in the Medical Assistant Program at Gwinnett College.  As part of the enrollment process, Gwinnett College was informed that the Complainant has HIV.  The College accepted the Complainant into the Program, and the Complainant successfully completed one quarter of courses.  Only then did Gwinnett College tell the Complainant she could not continue in the program’s Medical Assistant Program because she was a safety risk to others.  As a result of being forced from the Program of her choosing, the Complainant left Gwinnett College.  Gwinnett College fully cooperated with the United States Attorney's Office to resolve the complaint.

Gwinnett College has agreed to make changes to its enrollment process, including removing questions related to HIV/AIDS on its application.  The College has also agreed to draft new policies and procedures indicating that it does not discriminate against applicants or students on the basis of disability, including HIV.  Based on the Agreement, Gwinnett College will conduct ADA training for all its employees, with a focus on HIV‑related discrimination.  The College has also agreed to pay $23,000 to repay a portion of Complainant’s student loans, and compensate her for emotional distress, pain and suffering. 

Title III of the ADA prohibits places of public accommodations, such as Gwinnett College, from excluding people with disabilities, including people with HIV, from participating in or benefitting from the goods, services, facilities, privileges, advantages, or accommodations. 

Assistant United States Attorney Aileen Bell Hughes represented the United States in this matter. 

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

ATLANTA - Jennifer Wynn has pleaded guilty to charges that she stole nearly $200,000 from the federal government by illegally receiving and spending her mother-in-law's Social Security benefits for nearly 20 years after her mother-in-law's death. 

“The amount of money Wynn stole and her persistence in stealing for nearly 20 years shows her shameful disregard of the law,” said United States Attorney Sally Quillian Yates. “Those who steal from federal entitlement programs are on notice that they will be prosecuted to the fullest extent of the law.  This type of crime harms not only the federal government, but the proper beneficiaries of these programs.”

“Of all the ways in which criminals attempt to steal Social Security benefits, few are as shameless and as certain to be detected as concealing the death of a family member,” said Thomas Caul, Special Agent in Charge, Office of the Inspector General for the Social Security Administration.  “I’m grateful to the United States Attorney for her commitment to ensuring that these cases are prosecuted to the fullest extent of the law, preserving Social Security funds for those who need and deserve them.”

According to United States Attorney Yates, the charges and other information presented in court: Wynn's mother-in-law died in 1994.  The defendant kept the deceased woman's bank account open, and the benefits, which were intended solely for her mother-in-law, were deposited into the account. Wynn used the money for her own personal expenses. Wynn attempted to conceal her mother-in-law’s death by writing checks to herself each month, and forging her mother-in-law's signature. In total, she received $195,304 in government benefits to which she was not entitled. 

Sentencing for Wynn, 50, of Marietta, Ga., is scheduled for August 13, 2014, at 2:00 p.m. before United States District Judge Orinda D. Evans.

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

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

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

ATLANTA - Steven E. Thompson has been convicted by a federal jury of sex trafficking of a juvenile, conspiring to do the same, and transportation for prostitution.

“This defendant maintained his lifestyle on money made through prostitution,” said United States Attorney Sally Quillian Yates.   “Thompson had no problem with sexually exploiting women, even going as far as forcing a homeless 17-year old to have sex with strange men for a place to sleep.  Sex trafficking is despicable.  Our office will use every asset available to eradicate this practice from our community.”

‘"The sale of under-aged girls for sex is a plague on our society and my agents will not rest while we know there are more victims out there being exploited by these 'pimps' who should be more accurately known as child rapists,” said Special Agent in Charge Brock D. Nicholson, head of Homeland Security Investigations in Atlanta.  “I am grateful to the GBI for joining us in this investigation and for their larger commitment to target the criminals engaging in sex trafficking in Georgia.”

According to United States Attorney Yates, the charges and other information presented in court: Thompson and his co-defendant, Tierra Waters, who pled guilty to conspiracy to sex-traffic a minor, lived in the Grandview Condominiums in the Buckhead area of Atlanta, Ga.  Thompson advertised his prostitution business on Backpage.com, posting advertisements inviting men to contact women for sex.  The men then came to the Buckhead condo for sex or met the women at residences or hotels around Atlanta. 

Between April and June of 2011, Thompson advertised a 17-year old refugee from West Africa for prostitution, falsely listing her age as 19 and 20.  Because she came to the United States without her parents, the teen was at the mercy of various relatives and friends for shelter and support and went through frequent periods of homelessness.  In February of 2011, the teen was declared a deprived child by the Clayton County, Ga., Juvenile Court and was placed in a temporary shelter.  Her grandmother took custody of her, but soon left the country, leaving the teen to fend for herself.  In April 2011, Thompson and Waters offered the homeless teenager a couch to sleep on while she waited to get into Job Corps. 

After a few weeks, they told her that she would have to have sex with men for money or get out of the condo.  For the next six weeks, the teen was forced to have sex with three to five men each night at the condo and other places around Atlanta, Ga.  The teen was arrested in an undercover operation at the Intercontinental Hotel in Atlanta on June 11, 2011.

Men who think they are buying sex from a consenting adult may actually be contributing to sex trafficking of minors unwittingly.   A customer testified at trial that he had found the minor on Backpage.com, not realizing she was underage.  This witness also testified regarding threatening text messages he received from Thompson advising him of the teen's age and attempting to extort money from him.      

In addition to the teen, Thompson, 43, who went by the name ‘Silk,’ also posted ads on Backpage.com for A.M., a prostitute from Washington, and F.F., a prostitute from Alabama.  Thompson met A.M. on the Internet and invited her to come to Atlanta to work as a prostitute.  In March 2011, A.M. flew from Seattle, Wash., to Atlanta.  She moved in with Thompson and Waters and continued to engage in prostitution from the condo.  Likewise, Thompson found F.F. on Backpage.com.  Thompson told F.F. that she could make more money being a prostitute in Atlanta than she could in Alabama and convinced her to come to Atlanta in August 2011.

This case was investigated by Special Agents of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations 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 - Missy A. Sledge has been sentenced to four years and nine months in prison for mail fraud and aggravated identity theft in connection with a fraud scheme she carried out using her position as an IRS employee.

“As an IRS employee for over twelve years, Sledge reviewed suspicious returns to protect the government from being victimized by fraud,” said United States Attorney Sally Quillian Yates.  “Instead, she used her IRS access to victimize 60 taxpayers, and cost the government over $500,000.00 in losses.  Citizens file their taxes expecting government employees to handle their returns and trust that their information will be safe.  Identity theft is a growing problem, one we combat daily.”

“The misuse of public office for private gain, especially by those employees who are entrusted with the fair and honest administration of our Nation’s tax laws, is a particularly heinous crime,” said J. Russell George, the Treasury Inspector General for Tax Administration. “In carrying out our duty to safeguard the integrity of the tax administration system, our office will continue to investigate vigorously allegations of corruption and to ensure that those responsible for misconduct are held accountable.”

According to United States Attorney Yates, the charges and other information presented in court: Sledge used her position as an IRS employee to carry out the scheme, which also involved the assistance of other individuals.  In general, the other individuals would file fraudulent tax returns using the stolen identities of real taxpayers.  These individuals would then provide the Social Security numbers associated with the fraudulent returns to Sledge.  If the returns in question were routed to Sledge for review as part of her job, she would make sure that the fraudulent return payment was released by the IRS. 

The scheme also involved some tax returns that were not fraudulent.  Sledge would look for large, valid tax refunds pending in the IRS computer systems, and then provide the other individuals with information needed to fraudulently change the address of those taxpayers in the IRS systems.  The valid refund would then be mailed to the address controlled by the individuals working with Sledge, rather than to the taxpayers' actual addresses.  The individuals working with Sledge paid her a share of the proceeds from these activities.

As a result of Sledge's misconduct, a total of 60 taxpayers either had fraudulent tax returns filed or released using their social security numbers, or had valid refunds they were lawfully due redirected to criminals waiting to steal those refunds.  The total loss to the government was $501,048.40, with a larger loss of $2,378,678.35 having been attempted, but rejected by the IRS before refunds were issued.  Sledge's conduct continued until she was arrested at her desk at work on November 26, 2013.

Sledge, 47, of Atlanta, Ga., has been sentenced to four years and nine months in prison to be followed by five years of supervised release, and ordered to pay restitution in the amount of $501,048.40.  Sledge was convicted on these charges on February 18, 2014, after she pleaded guilty.

This case was investigated by the U.S. Treasury Inspector General for Tax Administration.

Assistant United States Attorney Alana R. Black 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 - Demetrius Pullins, who has been convicted multiple times for illegal possession of both firearms and drugs, has been sentenced to 21 years and ten months.

“Pullins’ armed drug dealing had plagued the community for many years,” said United States Attorney Sally Quillian Yates.  “Despite three prior felony convictions for drug trafficking spanning two decades, he was unrepentant.  This sentence ends Pullins’ ability to sell drugs in our community.”

“This sentence is a direct message to career criminals that law enforcement is observant and will not allow egregious violations of our laws to go unpunished,” said ATF Special Agent in Charge Christopher Shaefer.  “ATF and our law enforcement partners will remain on the frontline to reduce violent crime by targeting career criminals such as Pullins to ensure such violators are prosecuted and removed from our streets.”

According to United States Attorney Yates, the charges and other information presented in court: After receiving a tip about a drug stash house located at 2020 Donald Lee Hollowell Parkway (formerly Bankhead Highway), the Atlanta Police Department (APD) investigated the matter, observed a heavy volume of traffic coming to and from the residence and observed a car registered to Demetrius Pullins parked at the residence.  After APD made undercover buys of ‘crack’ cocaine from this residence, a State Court Judge issued a warrant to search the residence.  On December 14, 2012, APD executed the search warrant just as Pullins left the house.  During the search, the police seized:  two firearms, a scale, 931 grams of ‘crack’ cocaine in 485 bags, and $5,340 in United States currency.  The ‘crack’ cocaine seized from Pullins had an estimated street value of $95,000.  During his guilty plea Pullins claimed ownership of all of these items.

Pullins previous convictions were:

•           May 19, 1994, he was sentenced to five years’ probation for possession of cocaine with intent to distribute, arising from at November 27, 1993 arrest.

•           May 19, 1994, he was sentenced to five years’ probation for possessing cocaine with intent to distribute, arising from a January 5, 1994 arrest.

•           August 28, 1996, he was sentenced to three years and ten months imprisonment and three years of supervised release for possession of a firearm by a convicted felon.

•           August 28, 1996, after he was released from federal prison, he was sentenced to an additional two years in prison for violating the terms of his supervised release because he frequented a place where illegal drugs were sold.

•           February 23, 2009 he was sentenced to a ten year suspended sentence for trafficking in cocaine.

Demetrius Pullins, a/k/a “Foosie,” 40, of Atlanta, Ga., was sentenced by United States District Court Judge William S. Duffey, Jr. to 21 years and ten months of imprisonment, to be followed by five years of supervised release, and ordered to forfeit the $5,340 in drug proceeds seized from him.  Pullins pleaded guilty on February 27, 2014, of possessing ‘crack’ cocaine with intent to distribute and being a felon in possession of firearms, after he pleaded guilty.   

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

Assistant United States Attorney Joseph Plummer 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 - Donald R. LaFond, Jr., was sentenced today to life imprisonment, and Jason Robert Widdison was sentenced to 31 years and eight months in federal prison, for murdering a fellow prison inmate at the United States Penitentiary in Atlanta.  Both defendants were convicted of second-degree murder after a jury trial on February 3, 2014. 

“These defendants, members of a white supremacist prison gang, brutally murdered another inmate for not objecting to having an African-American cellmate,” said United States Attorney Sally Quillian Yates. “Whether racially-motivated violence occurs on our streets or in our prisons, we will hold the perpetrators accountable.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Law and order within a correctional facility setting is paramount in protecting the safety and lives of not only those inmates living within the walls of the facility but also for those working there.  The FBI will continue to provide investigative assistance to the U.S. Bureau of Prisons in ensuring that these inmates with gang or supremacy affiliations are held accountable for their violent actions.”

According to United States Attorney Yates, the charges and other information presented in court: On March 1, 2011, LaFond and Widdison, both members of white supremacist prison gangs, were exercising inside the special housing unit recreation area of the United States Penitentiary in Atlanta, Ga.  The victim, a white inmate who was not a gang member, joined the defendants in the area and attempted to make conversation and walk around with them. 

After a short period of time, LaFond and Widdison suddenly began to punch the victim from both front and behind, knocking the victim to the ground.  Both LaFond and Widdison then stomped on the victim’s head and neck, as many as ten times each.  Corrections officers witnessed the incident and intervened.  Both men complied with the officers’ orders to stop beating the victim, but by then, the victim was unconscious.  The victim was taken to a hospital but never regained consciousness.   As a result of his injuries, the victim died on April 5, 2011.

The evidence at trial showed that, in the weeks leading up to the assault, LaFond and Widdison expressed anger towards the victim because the victim refused to protest the fact that he had an African-American cellmate.  The defendants pressured the victim to take any steps necessary to be reassigned to another cell.  Further evidence showed that the victim refused to comply with the defendants’ demands and that the defendants regarded this refusal as a violation of their gang code.

Donald R. LaFond, Jr., 53, of New Bedford, Massachusetts, and Jason Robert Widdison, 35, of Morgan, Utah, were convicted by a jury of second-degree murder on February 3, 2014, after a week-long trial.  The sentences were imposed by U.S. District Judge William S. Duffey, Jr., and will be served consecutively to the defendants’ current prison sentences. 

This case was investigated by the Federal Bureau of Investigation.

Assistant United States Attorneys Nekia S. Hackworth and Brent Alan Gray prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the 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 – Seventeen members of a Mexico-based drug ring were indicted by a federal grand jury on May 28, 2014, on federal charges, including conspiracy to distribute methamphetamine, heroin and cocaine and conspiracy to commit money laundering.

“These defendants are charged with using the metropolitan Atlanta area as their hub for the importation and distribution of millions of dollars’ worth of illegal deadly drugs,” said United States Attorney Sally Quillian Yates.  “As a result of the tremendous cooperation between federal agencies and local law enforcement partners, this drug ring is now out of business.”

“This investigation unmasked a massive smuggling conspiracy involving staggering amounts of heroin, cocaine and methamphetamine brought  into Atlanta from the southwest border, and a significant amount of bulk cash destined for Mexico,” said Special Agent in Charge Brock D. Nicholson, head of Homeland Security Investigations in Atlanta. “Thanks to a complex and coordinated effort by more than a dozen federal, state and local law enforcement agencies, we have been able to dismantle this transnational criminal network and bring these perpetrators to justice.”

“The attack on money laundering is an essential front in the war on narcotics,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation.  “We will continue to unite with our law enforcement partners at the local, county, state and federal levels, and utilize every tool available to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice.”

According to United States Attorney Yates, the charges, and other information presented in court: Atenogenes Alvarado-Delgado was the alleged Mexico-based leader of this drug trafficking organization, and allegedly conspired with his brother, Jose Alvarado-Delgado, and associates, Reberiano Arroyo-Santana and Manuel Arroyo-Delgado, Jr., to import large amounts of cocaine, methamphetamine, and heroin into the Atlanta area from Mexico.  The investigation revealed that this organization used passenger buses, owned by Alejandro Carmona, to transport the drugs from Mexico, across the border into the United States, and directly to the Atlanta area. 

After unloading the narcotics-laden buses in local warehouses, Jose Antonio Pineda-Maldanado, Enrique Arroyo, Blanca Hernandez, Rufino Pineda-Perez, and Miguel Salinas would allegedly distribute the drugs in the Atlanta, Ga., area, as well as in Florida.  Jose Cardenas-Garcia allegedly off-loaded drugs and loaded drug proceeds into elaborate concealed compartments in the buses.  Rubi Torres-Aguilar, Yarely Pineda, and Reynaldo Maldonado-Guipes also allegedly transported drug proceeds on the buses in their suitcases. Alan Arnold Lopez allegedly supervised the border crossings of the buses and also traveled to the Atlanta area aboard at least one drug-filled bus.

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

• 39 pounds of methamphetamine seized on October 8, 2013, from Miguel Salinas after a traffic stop in Doraville, Ga.;

• 165 pounds of methamphetamine seized on October 11, 2013, pursuant to a search warrant of an apartment on Cleburne Parkway in Hiram, Ga.;

• 178 pounds of cocaine and heroin seized on October 11, 2013, pursuant to a search warrant of an apartment on Cumberland Pkwy in Cobb County, Ga.;

• $386,000 in drug proceeds seized on December 7, 2013, in Cuba, Ala. from suitcases transported on a passenger bus.  The bus had departed Atlanta, Ga., en-route to Mexico;

• 132 pounds of methamphetamine seized on January 3, 2014, from Jose Antonio Pineda-Maldanado after a traffic stop in Austell, Ga.;

• Eleven pounds of methamphetamine seized on January 3, 2014, from an apartment on Jameson Pass in Alpharetta, Ga., which was used by the organization as a methamphetamine laboratory.  Law enforcement had discovered the methamphetamine after an explosion at the apartment;

• 26 kilograms of heroin seized off a passenger bus at the U.S.-Mexico border in Laredo, Texas on January 20, 2014.  The bus was destined for the Atlanta area from Mexico; and

• $277,490 in drug proceeds seized on March 19, 2014, from a passenger bus in Douglasville, Ga.  The drug proceeds were concealed in false compartments within the bus frame.

Each of the following defendants has been arrested or located and will have an initial appearance before a United States Magistrate Judge in Atlanta or in the district in which they were arrested: Atenogenes Alvarado-Delgado, 35, of Powder Springs, Ga.; Jose Alvarado-Delgado, 35, of Austell, Ga.; Reberiano Arroyo-Santana, 36, of Atlanta, Ga.; Jose Antonio Pineda-Maldanado, 22, of Smyrna, Ga.; Yarely Pineda, 22, of Smyrna, Ga.; Alejandro Carmona, 63, of Arlington, Texas; Jose Cardenas-Garcia, 48, of Kennesaw, Ga.; Alan Arnold Lopez, 24, of Mableton, Ga.; Blanca Hernandez, 41, of Alpharetta, Ga.; Ranferi Pineda, 24, of Norcross, Ga; Rufino Pineda-Perez, 48, of Lawrenceville, Ga.; and Miguel Salinas, 22, of Lawrenceville, Ga.

Law enforcement officers continue to search for Manuel Arroyo-Delgado, Jr., 23, of Sandy Springs, Ga.; Enrique Arroyo, 38, of Atlanta, Ga.; Reynaldo Maldonado-Guipes, 56, of Cumming, Ga.; Rubi Torres-Aguilar, 44, of Austell, Ga.; and one additional male known only as “Mocha.”

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

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

Assistant United States Attorney Michael Herskowitz is prosecuting the case.

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

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the 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 Atlanta Public Schools (APS) Chief Information Officer (CIO) Jerome Oberlton was sentenced to three years and five months in federal prison for conspiring to receive kickbacks in exchange for awarding a $780,000 contract to a computer vendor. 

“Oberlton lined his own pockets at the expense of the APS students and teachers who depended on him,” said United States Attorney Sally Quillian Yates.  “In a time when schools struggle to make the most of every dollar, Oberlton put his own greed before his obligation to protect scarce resources.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Oberlton’s sentence will afford him the opportunity to reflect upon his actions and should serve as a reminder to all who serve the public that manipulating the system for self-gain in this manner is not only wrong but criminal and that it will not be tolerated.”

“This sentence is a vital element in maintaining public confidence that this individual and others who commit similar crimes will be held accountable,” stated Special Agent in Charge, Veronica F. Hyman-Pillot. “IRS Criminal Investigation is committed to addressing financial fraud at every level and is proud to have worked with our law enforcement partners to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice.”

According to United States Attorney Yates, the charges and other information presented in court: Oberlton, as APS’ CIO, had overall management responsibility for the APS information technology program.  In January 2007, the school system issued a request for proposal (RFP) for a Data Warehousing (DW) project.  The DW project was intended to centralize information relating to APS operations, including student information, so that it was maintained digitally in a secure, easily-accessible manner. 

From the start of the project in January 2007, co-defendant Mahendra Patel and Oberlton conspired to influence the RFP process and, ultimately, caused the winning bidder to be selected in exchange for kickbacks paid to both.  In order to hide the bribes, Oberlton created Global Technology Partners (GTP) and, later, Global Technology Services (GTS), funneling the bribe payments through these shell companies.  Oberlton concealed his ownership of GTP and GTS from the school system, even when questions arose in 2007. 

In contrast, the kickbacks to Patel were disguised as sales commissions for non-existent consulting work he supposedly performed for the shell companies.  In reality, Patel acted as an intermediary, helping to negotiate the kickbacks to Oberlton from the vendor. The computer vendor ultimately paid approximately $60,000 in bribes to Oberlton over almost six months and, in return, the company received $780,000 in APS project work. 

Oberlton was APS’ CIO between June 2004 and August 2007 and, most recently, was the Chief of Staff for the Dallas Independent School District before he resigned in May 2013, shortly after he was indicted. 

Oberlton was sentenced 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 $735,130.  Oberlton was convicted on these charges on January 8, 2014, after he pleaded guilty.

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

Assistant United States Attorneys Kurt R. Erskine and Jill 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 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 - Five defendants have been indicted on federal charges of conspiring to illegally import into the United States male enhancement products that contained the active ingredient in Viagra.

“These defendants are charged with importing mislabeled products that contained the active ingredient in Viagra which can only be obtained in the United States after being prescribed by a licensed physician,” said United States Attorney Sally Quillian Yates. “According to the indictment, they then distributed the products to retail outlets throughout the United States. The laws the defendants are charged with violating are intended to protect consumers from unknowingly using products that might cause serious side effects. Along with our law enforcement partners we will vigorously prosecute individuals who violate the food and drug laws in the way these defendants allegedly did.”

“Today’s announcement demonstrates the continued commitment of the Food and Drug Administration’s Office of Criminal Investigations to aggressively pursue those who offer and sell unapproved and misbranded drugs,” said Special Agent in Charge David W. Bourne.  “We will remain vigilant in our efforts to protect consumers from these fraudulent and potentially dangerous products.”

According to United States Attorney Yates, the charges, and other information presented in court:  The defendants imported from China male enhancement products with names such as, “Maxman,” “Herb Viagra,” “Rock Hard Weekend,” “Stiff Nights,” “Happy Passengers,” “Hard Ten Days” “Zhen Gongfu,” to sell throughout the United States. These products contained the same drug that is the active ingredient in Viagra. Because the products contained a drug that is only available in the United States when prescribed by a licensed physician, if the products were properly labeled, the Food and Drug Administration and United States Customs and Border Protection would have stopped the products from entering the United States. In order to evade import restrictions on the products, the defendants directed their suppliers to mislabel the boxes containing the products to make it appear that the boxes contained items that can be legally imported into the United States, such as beauty products, pottery, coffee, and tea. By causing the shipments to be mislabeled, the defendants were able to import the products illegally.

The defendants received the illegally imported products at multiple addresses in the Atlanta area. They rented storage units at different locations where they repackaged the products for distribution to wholesale and retail locations in the Atlanta area and throughout the United States. In order to evade detection by law enforcement authorities, the defendants moved their illegal operations regularly, used aliases, false addresses, and fake business names, and misrepresented the nature of their business when renting storage units and mail boxes.

In the past three years the defendants wire transferred more than $2 million in United States currency to bank accounts in China to pay for the illegally imported merchandise.

Ismail Ali Khan, 26, of Decatur, Ga.; Arbab Salim, 27, of Stone Mountain, Ga.; Hardik Kumar Desai, 24, of Stockbridge, Ga.; and Natenael Zeyid, 34, of Clarkston, Ga., were arraigned today before Janet F. King, United States Magistrate Judge, on federal charges of conspiring to illegally import into the United States male enhancement products that contained the active ingredient in Viagra.  Ahmed Ali Khan, 37, of Alabaster, Ala., was arrested in Alabama and will make his initial appearance before a U.S. Magistrate Judge in Alabama.  The defendants were indicted by a federal grand jury in Atlanta, Ga., on May 28, 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 Food and Drug Administration, Office of Investigations, with the assistance of Homeland Security Investigations.

Assistant United States Attorney William L. McKinnon, Jr. is prosecuting the case.

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

ATLANTA - Steven E. Slawson has been indicted by a federal grand jury for participating in a long-running insider trading conspiracy involving Carter’s, Inc. stock.

“The charges against Slawson reflect that for over five years, Slawson obtained a sneak preview of Carter’s not-yet-released quarterly and annual financial results and other confidential internal information,” said United States Attorney Sally Quillian Yates.  “He is charged with buying and selling tens of thousands of shares of Carter’s stock ahead of the news to make illegal profits in the stock market.  Insider trading simply isn’t worth it.  Sooner or later, you will be brought to justice.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Insider trading laws are in place to prevent those on the inside from having unfair advantage over the public and to further the desire to have and maintain a transparent stock market.  The FBI will continue to work with its partners at the U.S. Securities and Exchange Commission in the enforcement of these federal laws.”

According to United States Attorney Yates, the charges, and other information presented in court:  Carter’s, Inc. is a major children’s clothing company headquartered in Atlanta, Georgia.  Carter’s is a public company registered with the U.S. Securities & Exchange Commission (SEC), and its common stock is listed on the New York Stock Exchange.

Slawson, 67, of Lebanon, N.J., was the co-founder of Titan Capital Management LLC., a hedge fund manager located in Parsippany, N.J.  At Titan, Slawson co-managed a multimillion dollar portfolio of the securities of publicly-traded companies.  Beginning in or about early 2005, and continuing through in or about July 2010, Slawson is alleged to have obtained inside information about Carter’s quarterly and annual financial results and other events in advance of the public announcement of the information.  Slawson is alleged to have obtained the inside information from an individual identified in the indictment as “Cooperator Number 1,” who was working as a paid outside consultant to Titan.  The indictment alleges that, at the time, Cooperator Number 1 was a retired equity research analyst formerly associated with the New York, New York office of a prominent global financial institution.

The indictment alleges that Slawson in turn caused Titan to execute transactions in Carter’s securities between early 2005 and July 2010 based on the inside information received from Cooperator Number 1, earning illegal profits and illegally avoiding losses for Titan.  It further alleges that, in 2009 and 2010, Slawson also bought and sold Carter’s securities based on inside information in his own personal accounts, in addition to the hedge fund’s account.

According to the indictment, Cooperator Number 1 received the inside information from Eric M. Martin, who was employed as Carter’s head of Investor Relations between 2003 and March 2009.  After Martin separated from Carter’s in March 2009, Martin is alleged to have obtained the inside information from Richard T. Posey, who was then employed as Carter’s Vice President of Operations.  Martin in turn continued to provide the information to Cooperator Number 1 through July 2010.  The indictment alleges further that, beginning in or about March 2010, Martin began providing the inside information to Slawson directly, in addition to providing it through Cooperator Number 1.

The May 20, 2014, grand jury indictment charges Slawson with one count of conspiracy to commit securities fraud and wire fraud, 25 counts of securities fraud, and 9 counts of wire fraud.  Based on current estimates, the government alleges that Slawson is responsible for illegal insider trading gains and losses avoided resulting from the conspiracy, his own trading, and relevant conduct in the amount of approximately $1.7 million.  Today Slawson had his initial appearance on the indictment before Chief U.S. Magistrate Judge Janet F. King.  The case has been assigned to U.S. District Judge Richard W. Story for trial.  A trial date has not yet been set.

Slawson is the fourth individual to be charged in a criminal investigation into insider trading in Carter’s stock, and the sixth person overall to be criminally charged in connection with the accounting fraud and insider trading investigations arising out of Carter’s October 27, 2009 earnings delay and multi-year financial restatement.

Eric M. Martin, 44, of Roswell, Ga., was indicted on November 7, 2012 for conspiracy, securities fraud, and wire fraud in connection with his participation in an insider trading conspiracy and for his own insider trading in Carter’s stock between 2005 and 2009, while Martin was still employed as Carter’s head of investor relations.  The conspiracy charge alleged that Martin repeatedly provided inside information about Carter’s to Cooperator Number 1 ahead of the company’s earnings releases and other events between 2005 and 2009.  This included tipping Cooperator Number 1 about Carter’s May 2005 acquisition of competitor Oshkosh B’Gosh before the news became public.  Martin pleaded guilty to the conspiracy charge on December 8, 2012.

Richard T. Posey, 53, of Duluth, Ga., was charged by Criminal Information and pleaded guilty to conspiracy to commit securities fraud on June 19, 2013.  The conspiracy charge against Posey related to his disclosure of insider information to Martin ahead of quarterly and annual earnings releases and other events between early 2009 and July 2010, after Martin’s separation from Carter’s.

A third individual, Mark Megalli, 42, of New York, N.Y., was charged by Criminal Information and pleaded guilty to conspiracy to commit securities fraud on November 15, 2013.  The conspiracy charge against Megalli related to trades that Megalli executed in Carter’s securities between September 2009 and July 2010 on behalf of multibillion dollar New York hedge fund Level Global Investors LP, based on inside information that he received from Martin.  At that time, Megalli was employed as the portfolio manager for Level Global’s consumer sector.  The illegal trading included Level Global’s liquidation of an approximately $9 million position in Carter’s stock in the days leading up to the October 27, 2009 earnings delay announcement.

Sentencing for Martin, Megalli, and Posey is scheduled for July 8, 2014, before U.S. District Judge Richard W. Story.

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 David M. Chaiken and Stephen H. McClain are prosecuting the case.

The Atlanta Regional Office of the SEC has conducted a separate investigation into potential civil violations of the U.S. securities laws relating to insider trading in Carter’s stock. In connection with its investigation, the SEC has filed civil enforcement actions against multiple individuals.

Carter’s, Inc. is cooperating in the investigation.

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 is 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 – Veronica Bullard has been sentenced to three years and nine months in federal prison for her role in the commission of a series of armored truck robberies in the Atlanta area between October 2010 and March 2011.

“Bullard chose to endanger many of her co-workers’ lives as well as guards from other armored car companies,” said United States Attorney Sally Quillian Yates.  “The inside information she gained in her position at Dunbar Armored, Inc., a local armored truck service, fueled a crime spree that left one man dead and another seriously injured.  She thought nothing of the escalating violence in each attack.  Instead, she continued to abuse her position and access to information all motivated by pure greed.  Bullard deserves time in prison, and will now get it.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “This defendant’s actions were despicable and her betrayal to her employer and the courier industry as a whole led to the injury of one courier and the fatal shooting of Garda courier Gary Castillo.  Today’s sentencing will not only hold Ms. Bullard accountable for those actions but will give her much opportunity to reflect on the great harm to others that those actions caused.”

According to United States Attorney Yates, the charges and other information presented in court: The defendant, Veronica Bullard, was an employee of Dunbar Armored in 2010.  Bullard provided information to co-defendants Quentin Booker and Stacey Dooley about the location and amount of cash handled during Dunbar Armored cash pick-ups.  This information was used them to plan and to execute multiple robberies of Dunbar Armored couriers.  During the robberies, one or two gunmen would approach a courier after the courier made a cash pick-up from a location, or as the courier was about to restock an ATM machine with cash.  Other members of the robbery crew would act as lookouts during the robberies, with one acting as the designated getaway driver.

The information Bullard provided to the robbers was also used to target couriers from other armored car companies.  As the number of robberies escalated, so did the level of violence.  In fact, during the robbery of a Loomis Armored courier who was restocking cash in an ATM machine on January 21, 2011, at a Wells Fargo Bank located in Stone Mountain, Ga., co-defendant Ashley Henderson shot and seriously injured the courier.  During the robbery of a Garda Cash Logistics courier outside the Kroger Grocery Store located on LaVista Road in DeKalb County, Ga., Ashley Henderson fatally shot the courier, Gary Castillo, after Castillo made a cash pick-up of $11,000 from the store.  Altogether, members of this robbing crew were responsible for six robberies involving thefts of over $470,000.

The evidence established that Bullard and her co-conspirators were specifically involved in the commission of the following robbery:

• The robbery of a Dunbar Armored courier just after he made a cash pick-up on October 7, 2010, at the Mex America Latino Services located in Marietta, Ga.

• The evidence further established that Bullard’s co-conspirators were involved in the commission of the following additional robberies:

• The robbery of a Dunbar Armored courier who was restocking cash in an ATM machine on November 11, 2010, at a Bank of America located in Buford, Ga.;

• The robbery of a Loomis Armored courier who was restocking cash in an ATM machine on November 29, 2010, at a Wells Fargo Bank located in Snellville, Ga.;

• The robbery of a Dunbar Armored courier who was heading to an ATM machine to restock it with cash inside the Mall of Georgia on December 7, 2010;

• The robbery of a Loomis Armored courier who was restocking cash in an ATM machine on January 21, 2011, at a Wells Fargo Bank located in Stone Mountain, Ga.; and

• The robbery of a Garda Cash Logistics courier on March 15, 2011, outside the Kroger Grocery Store located on LaVista Road in DeKalb County, Ga.

Bullard was sentenced to three years and nine months in federal prison, followed by three years of supervised release.  She was also ordered to pay $104,694 in restitution. Bullard pleaded guilty to one count of Hobbs Act robbery (armed robbery of a Dunbar courier).    

In addition to Bullard, the following defendants have also entered guilty pleas as a result of their role in the robberies:

• Ashley Henderson, 30 of Atlanta, Ga., pleaded guilty to five counts of Hobbs Act robbery (armed robbery of the couriers) and three counts of carrying and using a firearm during the commission of a violent crime.  He was sentenced to 75 years in prison.

• Stacey Dooley, 37, originally from Charlotte, NC, pleaded guilty to six counts of Hobbs Act robbery and two counts of carrying and using a firearm during the commission of a violent crime.  He was sentenced to 40 years in prison.

• Quentin Booker, 36, of Douglasville, Ga., pleaded guilty to five counts of Hobbs Act robbery and two counts of carrying and using a firearm during the commission of a violent crime.  He was sentenced to 32 years in prison.

• Edwin Thornton, 31, of Atlanta, Ga., pleaded guilty to three counts of Hobbs Act robbery and one count of carrying and using of a firearm during the commission of a violent crime.  He was sentenced to 15 years and 10 months in prison.

• Michael Johnson, 31, of Atlanta, Ga., pleaded guilty to two counts of Hobbs Act robbery and one count of carrying and using a firearm during the commission of a violent crime. He was sentenced to 15 years in prison.

• Ronnie Little, 22, of Stone Mountain, Ga., pleaded guilty to one count of Hobbs Act robbery and one count of carrying and using a firearm during the commission of a violent crime. He was sentenced to 12 years and nine months in prison.

• Desiree Jones, 29, of Snellville, Ga., pleaded guilty to two counts of unlawfully transferring a firearm knowing it would be used in a crime of violence and received a sentence of five years in federal prison. 

• Derrick Powell, 26, of Atlanta, Ga., pleaded guilty to two counts of Hobbs Act robbery and one count of carrying and using a firearm during the commission of a violent crime.  He is scheduled to be sentenced on June 18, 2014.

This case was investigated by the Federal Bureau of Investigation with significant assistance and resources provided by the Gwinnett Police Department.  Other departments providing invaluable assistance were the Gwinnett County District Attorney's Office, the DeKalb County Police Department, the DeKalb County District Attorney's Office, the Marietta Police Department, and the Cobb County District Attorney's Office.

Assistant United States Attorneys Tracia M. King and Jill E. Steinberg 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.

ROME, Ga. - Margie Sue Goad has pleaded guilty in federal court to theft of government funds for stealing her granddaughter's Social Security benefits. 

“The defendant was her granddaughter’s only family.  She betrayed the child by relinquishing her into state custody and then stealing her benefits” said United States Attorney Sally Quillian Yates.  “Goad’s guilty plea cannot undo the harm done to her granddaughter.  It does, however, show our commitment to justice and it should serve as a deterrent to others.”

“Stealing Social Security benefits intended for the care of a child is a shameful, selfish crime,” said Thomas Caul, Special Agent in Charge, Office of the Inspector General for the Social Security Administration.  “I’m gratified to see this defendant brought to justice and grateful to the U.S. Attorney for ensuring that Ms. Goad’s actions did not go unpunished.  Hopefully others charged with the care of children, and receiving Social Security benefits to provide that care, will take notice that there are serious consequences for violating that trust.”

According to United States Attorney Yates, the charges and other information presented in court: Marie Goad was appointed representative payee for her minor granddaughter’s Title II Social Security Survivor’s Benefits and Title XVI Supplemental Security Income (SSI) in September 2002.  She was required to use these benefits solely for the care and support of her granddaughter.  Her granddaughter began receiving SSB from her deceased father's account in 1994, and SSI in 2001.  Goad was required to complete yearly reports for the Social Security Administration (SSA) confirming that her granddaughter resided with her.  

Goad did not notify SSA that she relinquished permanent physical and legal custody of her granddaughter to DFACS in 2002, and that the child was growing up in foster care and group homes.  Instead, Goad continued to receive her granddaughter's benefits money, and spent the money on herself, and not on the child. 

Sentencing for Goad, 68, of Dalton, Ga., is scheduled for July, 31, 2014, at 10:00 a.m. before United States District Judge Robert L. Vining Jr.

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

Special Assistant United States Attorney Diane C. Schulman is prosecuting the case.

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

ATLANTA - Jeffrey David Shamp, a former Senior National Account Executive with The Coca-Cola Company, was sentenced to two years and three months in prison for siphoning over $400,000 in corporate American Express gift checks for his personal use.

“Corporate employees who steal hurt their employer, fellow colleagues, their customers, and the community,” said United States Attorney Sally Quillian Yates.  “By putting his personal gain above all else, Shamp has earned this time in federal prison.”

“The United States Secret Service and our law enforcement partners will continue to take an aggressive approach to arresting individuals who violate the trust of businesses to further their personal financial gain,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.

“This sentence is a message to others that there are consequences for taking what doesn’t belong to you,” stated Veronica F. Hyman-Pillot, IRS Criminal Investigation, Special Agent in Charge. “Individuals cannot fraudulently enrich their bank accounts and expect to go unpunished.”

According to United States Attorney Yates, the charges, and other information presented in court:  Jeffrey Shamp worked for The Coca-Cola Company from approximately July 2002 to November 2011, most recently as a Senior National Account Executive based in Massachusetts.  In his position, Shamp was authorized to order American Express (AMEX) gift checks to be used as part of a sales incentive program for Coca-Cola’s customers.  From approximately November 2005 through September 2011, Shamp fraudulently obtained AMEX gift checks under the false pretense that the checks would be used as part of Coca-Cola’s sales incentive program, when in fact Shamp used them to pay for over $400,000 in personal expenses, including alimony and rent payments, and as gifts to friends and relatives.

Shamp, 40, of Cincinnati, Ohio, pleaded guilty to one count of wire fraud before United States District Court Steve C. Jones on February 27, 2014.  In addition to his two year and three month sentence, Shamp was ordered to pay $411,550 in restitution to The Coca-Cola Company.

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

Assistant United States Attorney Steven D. Grimberg prosecuted the case.

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

ROME, Ga. – Former Murray County Chief Magistrate Judge Bryant L. Cochran has been indicted for sexually assaulting a county employee, for framing a woman who alleged that she had been sexually propositioned by Cochran, and for tampering with a witness.

“Cochran is charged with crimes that reflect that he completely abused the power and trust given to him by the people of Murray County,” said United States Attorney Sally Quillian Yates.  “First, he attempted to use his judicial position to solicit sexual favors from a female citizen. And, once the alleged misconduct came to light, Cochran tried to use his power and influence to cover up the incident by having the citizen framed for drug possession and by tampering with a witness.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “This latest indictment brings to light additional details of an orchestrated scheme full of false allegations lodged against one citizen but, in the end, costing the careers and reputations of those public servants making them. The FBI will continue to work with its various law enforcement partners in investigating all matters regarding public corruption.”

“It is important for citizens to have confidence in public officials, especially those entrusted with upholding and enforcing the law.  The indictment of Cochran shows that people in these positions will be held accountable when they are involved in criminal activity.  The GBI is committed to work with our federal partners to insure those in a position of trust are held accountable,” said Vernon Keenan, Director, the Georgia Bureau of Investigation.

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

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

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

Two days later, on August 14, 2012, Murray County Sheriff’s Office Deputy Joshua Greeson (who has since been convicted of witness tampering) conducted a traffic stop on a car occupied by the citizen. During the traffic stop, several officers and a police drug dog searched the car for approximately 15 to 20 minutes – but did not find any drugs.  Thereafter, Captain Michael Henderson (who is Cochran’s cousin and who has also been convicted of witness tampering) had an approximately two minute telephone conversation with Cochran. Following that call, Henderson told an officer at the scene that according to his information; the citizen hid her drugs in a magnetic box under the left, rear tire well. Upon receiving that information, Greeson found the metal box magnetically attached to the car in that precise location. Inside the box, Greeson recovered five small packets containing methamphetamine. Greeson then told the citizen that he had recovered drugs from her car. At that point, the citizen stated that she had been set up. Despite this, Greeson arrested the citizen and transported her to jail.

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

On May 13, 2014, a federal grand jury indicted Cochran, 44, of Chatsworth, Ga. for: (1) Conspiracy against Rights; (2) Deprivation of Rights under Color of Law, (3) Conspiracy to Distribute a Controlled Substance, and (4) Tampering with a Witness. The most serious of the charges carries a maximum sentence of 20 years in prison and a fine of up to $250,000.  In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.

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

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

Assistant United States Attorneys Jeffrey W. Davis and William L. McKinnon Jr. are prosecuting the case.

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

ATLANTA - Radric Davis, a/k/a Gucci Mane, who is a previously convicted felon, has pleaded guilty to illegally possessing a gun.  

“Davis has a long history of violence and of illegally possessing and using guns," said United States Attorney Sally Quillian Yates.  “This Office will prosecute those who illegally possess firearms, especially when, as Davis did, they have a history of violence and threaten others with firearms.  Our priority is to take violent repeat offenders off our streets to build safer communities.”

“The criminal history of the defendant, Radric Davis shows a complete and utter disregard for the lives of others as well as for their personal pursuits,” said ATF Acting Special Agent in Charge Aladino Ortiz. “As an agency and unified law enforcement community, we will not tolerate armed violent felons continually terrorizing and reducing the quality of life in the neighborhoods where we live, work, and play.”

“The Atlanta Police Department is constantly working to prevent and solve crime in the City of Atlanta.  The arrest and conviction of Mr. Radric Davis ensures that we are one step closer to making Atlanta the safest big city in the nation.   Our partnership with the U.S. Attorney’s Office is the best example of how we all work together to keep criminals in prison and off our streets”, said Atlanta Police Chief George N. Turner.

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, who told police that Davis was acting violent and had a handgun.   Police found the defendant on the street, smelling strongly of marijuana, with a Glock, 40 cal. handgun loaded with 11 rounds of ammunition in his possession.  When police arrived, Davis was waving the handgun and making threatening comments.  

As part of the plea agreement, the district court, upon accepting the plea, will sentence Davis, 34, of Atlanta, Ga. to serve 39-months in a federal prison for his crime.  Sentencing has been set for July 28, 2014, at 11:30 a.m., before United States District Court Judge Steve C. Jones.
This case is being investigated by the Atlanta Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives.

Assistant United States Attorney Kim S. Dammers 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 – Corey Charles Plunkett has been sentenced to 12 years in federal prison for distributing a pornographic image of his one-year-old daughter to an undercover law enforcement officer.

“Distribution of child pornography is in and of itself a heinous crime,” said United States Attorney Sally Quillian Yates.  “This case is all the more disturbing because the victim was the defendant’s one-year-old daughter.  We will continue to aggressively prosecute those who exploit our children.”  

“J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI has, for many years, not only investigated those who would sexually exploit children, but has also helped to educate the public and parents on how to better protect their children.  To see a case, such as this, where the child’s father was sexually exploiting his own child leaves many of our seasoned investigators without words.”

According to United States Attorney Yates, the criminal indictment, and information presented in court:  On September 26, 2013, a law enforcement officer in Ohio was engaged in an undercover investigation identifying subjects involved in the on-line victimization of children using two chat rooms known for attracting individuals with a sexual interest in children.  He was contacted by a subject later identified as Corey Charles Plunkett.  Plunkett wrote that he had a one year old daughter and asked whether a one year old was too young for sexual activity.  He also stated that he wanted his daughter to perform oral sex.  Shortly thereafter, Plunkett sent an image of himself, a non-pornographic image of his daughter, and later that day a pornographic image of his daughter to the undercover officer.  During the execution of a search warrant at the defendant’s home in Cobb County, Ga., police seized Plunkett’s phone and located the image that Plunkett had sent to the undercover officer.

Plunkett, 27, of Marietta, Ga., was sentenced by United States District Judge Steve C. Jones to 12 years in prison to be followed by supervised release for life.  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.

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

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 - Jermaine Eric Gibson has been convicted by a federal jury of unlawfully possessing a firearm as a convicted felon, in connection with his illegal occupation of a foreclosed property as a “sovereign citizen.” 

“Sovereign citizens do not believe that laws apply to them except when it is to their benefit,” said United States Attorney Sally Quillian Yates.  “This conviction demonstrates that our laws do apply to everyone.  If you violate the law, you will be prosecuted.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Individuals and even groups who feel that our laws don’t apply to them can pose a more significant risk to law enforcement, particularly when they illegally arm themselves.  The conviction in federal court of Mr. Gibson, a self-described sovereign citizen, is a clear reminder that he is not above the law.”

According to United States Attorney Yates, the charges and other information presented in court: In March 2013, Jermaine Gibson, a self-professed sovereign citizen, moved into a foreclosed home located in an upscale, gated community in Lithonia, Ga.  The home, however, was under contract to be sold, and the Gibson was not the buyer.  Gibson declared ownership of the property after he filed a deed in DeKalb County, Ga., in which he claimed that he had deeded the home to himself.  After he moved into the residence, he changed the locks on the doors and posted a warning to real estate agents to stay off the property. 

While Gibson was in the home, several people observed long-barreled guns at that residence.  Efforts to convince Gibson to vacate the property failed.  The real estate agent called the police to the residence, but was told that the matter was a civil matter.  The homebuyer went to the residence and spoke to Gibson.  When asked to leave because the homebuyer would be closing soon, Gibson refused to leave.  Gibson told the homebuyer that someone lied to her because she would not be moving into that home. 

The home was sold in April 2013, but the new buyer could not move into her home because Gibson still remained in the home.  The bank and the homeowner joined together to file paperwork in DeKalb County to have Gibson evicted.  In the meantime, warrants were obtained in DeKalb County for Gibson’s arrest.

On May 2, 2013, Gibson, 36, of Atlanta, Ga., was arrested and a search warrant was executed at the residence.  During the search, officers found a .38 Smith and Wesson revolver in Gibson's bed.  Because Gibson is a convicted felon, he cannot legally possess a firearm.

During the trial, agents testified that in a post-arrest interview, Gibson declared that the laws of the government do not apply to him.  He advised further that he possessed the handgun for protection.

Sentencing is scheduled for July 29, 2014, at 10:30 a.m. before United States District Judge Thomas W. Thrash.

This case was investigated by the Federal Bureau of Investigation.

Assistant United States Attorney Tracia  King is prosecuting the case.

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

ATLANTA – Ashley Henderson has been sentenced to 75 years and Stacey Dooley has been sentenced to 40 years in federal prison for committing a series of armored truck robberies in the Atlanta area between October 2010 and March 2011.

“The sentencing of these two defendants closes one chapter on a disturbingly violent robbery crew that had all Atlanta area law enforcement on high alert back in 2010 and 2011,” said United States Attorney Sally Quillian Yates.  “These robberies grew increasingly violent and dangerous not only to armored car couriers, but to the public who had the misfortune to be nearby.  The dismantling and sentencing of this robbery crew makes our district a safer place, and the long prison terms provide justice for the truly senseless murder of Mr. Castillo.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The sentencing of both Dooley and Henderson removes two violent career criminals from our streets. While the FBI is pleased with the role it played in bringing these two individuals to justice, our thoughts and prayers remain with those harmed in the wake of this violent crime spree, particularly the family of mortally wounded Garda courier Gary Castillo.”

According to United States Attorney Yates, the charges and other information presented in court: The defendants, Ashley Henderson and Stacey Dooley, were part of a group that robbed armored car couriers between October 7, 2010, and March 30, 2011.  During the robberies, one or two gunmen would approach a courier after the courier made a cash pick-up from a location or as the courier was about to restock an ATM machine with cash.  Other members of the robbery crew would act as lookouts during the robberies, with one being the designated getaway driver.  During a robbery in January 2011, Henderson shot the victim courier multiple times at close range, critically injuring him.  In March 2011, Henderson shot the victim courier multiple times, which resulted in the victim’s death.  Altogether, members of this crew were responsible for six robberies involving over $470,000. 

The evidence established that Henderson, Dooley, and their co-conspirators, were involved in the commission of the following robberies:

• The robbery of a Dunbar Armored courier just after he made a cash pick-up on October 7, 2010, at the Mex America Latino Services located in Marietta, Ga.

• The robbery of a Dunbar Armored courier who was restocking cash in an ATM machine on November 11, 2010, at a Bank of America located in Buford, Ga.

• The robbery of a Loomis Armored courier who was restocking cash in an ATM machine on November 29, 2010, at a Wells Fargo Bank located in Snellville, Ga.

• The robbery of a Dunbar Armored courier who was heading to an ATM machine to restock it with cash inside the Mall of Georgia on December 7, 2010.

• The robbery of a Loomis Armored courier who was restocking cash in an ATM machine on January 21, 2011, at a Wells Fargo Bank located in Stone Mountain, Ga.  Ashley Henderson shot and seriously injured the courier during the robbery.

• The robbery of a Garda Cash Logistics courier outside the Kroger Grocery Store located on LaVista Road in DeKalb County, Ga.  Ashley Henderson fatally shot the courier, Gary Castillo, after Castillo made a cash pick-up of $11,000 from the store. 

Henderson pleaded guilty to five counts of Hobbs Act robbery (armed robbery of the couriers) and three counts of carrying and using a firearm during the commission of a violent crime.  Dooley pleaded guilty to six counts of Hobbs Act robbery and two counts of carrying and using a firearm during the commission of a violent crime.  

In addition to Henderson and Dooley, the following persons have also entered guilty pleas as a result of their role in the robberies:

• Quentin Booker, 36, of Douglasville, Ga., pleaded guilty to five counts of Hobbs Act robbery and two counts of carrying and using a firearm during the commission of a violent crime.

• Edwin Thornton, 31, of Atlanta, Ga., pleaded guilty to three counts of Hobbs Act robbery and one count of carrying and using a firearm during the commission of a violent crime.

• Derrick Powell, 26, of Atlanta, Ga., pleaded guilty to two counts of Hobbs Act robbery and one count of carrying and using a firearm during the commission of a violent crime.

• Michael Johnson, 31, of Atlanta, Ga., pleaded guilty to two counts of Hobbs Act robbery and one count of carrying and using a firearm during the commission of a violent crime.

• Ronnie Little, 22, of Stone Mountain, Ga., pleaded guilty to one count of Hobbs Act robbery and one count of carrying and using a firearm during the commission of a violent crime.

• Veronica Bullard, 35, of Lithia Springs, Ga., pleaded guilty to one count of Hobbs Act robbery.

Desiree Jones, 29, of Snellville, Ga., pleaded guilty to two counts of unlawfully transferring a firearm knowing it would be used in a crime of violence and received a sentence of five years in federal prison.

Henderson, 30, of Atlanta, Ga., was sentenced by United States District Judge Thomas W. Thrash, Jr., to 75 years in prison to be followed by five years supervised release.  He was also ordered to pay an $800 special assessment.  Dooley, 37, originally from Charlotte, NC, was sentenced to 40 years in prison on April 16, 2014 to be followed by five years supervised release.  He was also ordered to pay an $800 special assessment.

This case is being investigated by the Federal Bureau of Investigation with significant assistance and resources provided by the Gwinnett Police Department.   Other departments providing invaluable assistance were the Gwinnett County District Attorney's Office, DeKalb County Police Department, the DeKalb County District Attorney's Office, Marietta Police Department, and the Cobb County District Attorney's Office.

Assistant United States Attorneys Jill E. Steinberg and Tracia M. King 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 HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.

ATLANTA – Dong Seok Yi, the former head of College Prep Academy in Duluth, Ga., and a co-conspirator have been sentenced for bringing illegal aliens into the country and issuing them fraudulent immigration documents.

“This defendant’s fraud scheme exploited a federal program that offers valuable educational opportunities to foreign students, and he instead took advantage of this program for his own personal gain,” said United States Attorney Sally Quillian Yates.  “It’s especially disappointing when someone victimizes a program like this that is designed to give foreign students a beneficial educational experience.”

“The Student and Visitor Exchange Program provides foreign students with a valuable opportunity to be educated in the United States,” said Brock D. Nicholson, special agent in charge of Homeland Security Investigations (HSI) in Atlanta. “By abusing the system to disguise workers as students, the defendant and his co-conspirators sought to enrich themselves and have damaged the educational experience of their legitimate students. HSI and our partners at the FBI will continue to work together to bring those who attempt to undermine the integrity of our immigration system to justice.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “These defendants took advantage of the generous student studies programs offered by the United States to instead engage in alien smuggling.  This sentencing will afford these defendants the time and opportunity to reflect upon their criminal actions.”

According to United States Attorney Yates, the charges and other information presented in court: Dong Seok Yi was the President and CEO of an English language school named College Prep Academy (CPA).  He also owns the Korean Times Atlanta, a newspaper company.  In 2009, Yi filed an application with the U.S. Department of Homeland Security, Student and Exchange Visitor Program, and obtained approval for CPA to enroll foreign-born students and issue I-20 forms, which enable students to stay in the United States.  Foreign-born students who are issued I-20s from universities and other institutions of higher education can get F-1 student visas permitting them to remain in the United States during the time of their schooling.

Once Yi obtained Student and Exchange Visitor Program certification for CPA, he and his co-defendants began facilitating the issuance of F-1 student visas to foreign-born individuals who were not entitled to, or eligible for, the visas.  Yi conspired with Korean bar owners to enroll females into the school with the understanding that the females would not attend classes as required but would instead work in the bars, which are also known as room salons.  CPA issued the females fraudulent I-20s that included false financial information. 

Co-defendant Sook An Kil, a/k/a Stacy Kil, 42, of Duluth, Ga., who was the Academic Coordinator and Designated School Official for CPA, signed the I-20s under penalty of perjury.  She also certified in the Student and Exchange Visitor Information System, a computerized system maintained by the Department of Homeland Security, that CPA’s “students” were active and attending class even though many never attended.  Student and Exchange Visitor Information System records show that the school claimed enrollment of up to 100 students when less than half that number were attending class.  Many simply began living and working in the country after obtaining a student visa from CPA.

Yi, 53, of Duluth, Ga., and co-defendant Chang Seon Song, 52, of Suwanee, Ga., the former Academic Director for CPA, referred individuals to another co-defendant, Sang Houn Kim a/k/a Chris Park, 54, of Diamond Bar, Calif., to obtain false documents to support their F-1 visa applications.  Kim manufactured and provided fraudulent passports, I-94 forms, school transcripts, bank statements, family registries, and other false documents to illegal immigrants to use in support of applications for F-1 visas.  Kim charged the aliens thousands of dollars for the fraudulent documents.  Yi and CPA profited by charging thousands in quarterly tuition payments for maintaining the immigrant on the student rolls.

Yi was sentenced to one year, ninth months in prison.  Kim was sentenced to one year in prison by United States District Judge Orinda D. Evans.  Both defendants were sentenced to three years of supervised release.  The Court also ordered the forfeiture of $36,867 from the bank accounts associated with the school, which were seized at the time of the defendants’ arrests and the execution of a federal search warrant at the school.  On February 7, 2014, Yi was convicted of immigration document fraud after pleading guilty.  On January 8, 2014, Kim was convicted of conspiring to commit immigration document fraud after pleading guilty.

Song and An Kil are scheduled to be sentenced by Judge Evans on July 1, 2014, at 3:00 p.m.  Both have pleaded guilty to conspiring to commit immigration document fraud.  In determining the sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.

Assistant United States Attorneys Stephen H. McClain, Susan Coppedge, and G. Jeffrey Viscomi are prosecuting the case.

This case is being investigated by Special Agents of the United States Department of Homeland Security, Homeland Security Investigations, and the Federal Bureau of Investigation. 

Given the enforcement action against College Prep Academy’s owner, designated school official, and academic director, investigators have been working with the U.S. Department of State – Consular Affairs Section to provide legitimate and prospective students with information regarding their options for maintaining their F-1 status.  Students were given the option of enrollment and transfer to another accredited educational program or returning to their home countries voluntarily.

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.

ROME, Ga. - Rodney Scott Blankenship has been sentenced for carjacking a Cedartown woman at gun point on August 31, 2012.

“This Defendant showed no regard for who he might have injured or killed during his crime spree,” said United States Attorney Sally Quillian Yates.  “The violent carjacking and police chase started in northwest Georgia, and the significant sentence appropriately reflects the serious danger he caused to both citizens and police.”

“This sentence is another reminder that ATF remains on the frontline of preventing violent crimes along with our law enforcement partners,” said ATF Special Agent in Charge Christopher Shaefer.   “We will not allow residents to suffer such criminal behavior, especially that which threatens the safety of innocent civilians and law enforcement officers.”        

According to United States Attorney Yates, the charges and other information presented in court: Rodney Scott Blankenship took a Cedartown woman's car at gunpoint on the evening of August 31, 2012.  During the course of the carjacking, he twice pointed his gun at the woman's boyfriend and pulled the trigger.  Fortunately for all, on both occasions, the gun failed to discharge.  The woman's boyfriend called 911, and when law enforcement arrived on the scene Blankenship fled in the woman's car, ramming a Cedartown patrol car in the process.  Blankenship then led police on a high speed chase until he crashed the vehicle.  After crashing the vehicle he attempted to flee the police on foot, but was apprehended.

Blankenship, 31, of Cedartown, Ga., has been sentenced by United States District Judge Harold L. Murphy, to 17 years, four months in prison to be followed by three years of supervised release.  Blankenship was convicted on these charges on December 6, 2013, after he pleaded guilty.

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

Assistant United States Attorney Matthew S. Carrico prosecuted the case.

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

ATLANTA – Former Fulton County Deputy Sheriff Reginald Warren pleaded guilty in federal court to charges that he demanded bribe payments from security officers assigned to work at the City of Atlanta's public swimming pools.

“Those who work within the law enforcement community must maintain the public’s trust and respect,” said United States Attorney Sally Quillian Yates.  “By entering his guilty plea, he acknowledges he violated his oath of office and betrayed those he promised to protect.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The integrity of those working within our law enforcement community is paramount in maintaining a criminal justice system that the public can trust.  The FBI will continue to dedicate significant investigative resources toward such public corruption matters that have the potential to do so much harm.” 

According to United States Attorney Yates, the charges and other information presented in court: During the summer of 2011, while Warren was employed as a deputy with the Fulton County Sheriff’s Office, he contracted with the City of Atlanta to coordinate and supervise security at the City’s public swimming pools.  In that capacity, Warren hired a number of security officers and, scheduled them to work various shifts at pools located throughout the city.  Soon after the officers were hired, Warren demanded payments from at least three officers in exchange for continuing to schedule them for more work.  Over a three-month period, Warren, 50, of Covington, Ga., accepted thousands of dollars in kickbacks.

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

Assistant United States Attorney Brent Alan Gray is prosecuting the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the 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 - Apollo E. Nida has pleaded guilty to conspiring to commit mail, wire and bank fraud in a complex scheme spanning over four years, harming over 50 victims, and causing over $2.3 million in losses.

“This defendant participated in a sweeping fraud scheme that exploited many segments of the financial system, including phony claims submitted to federal and state agencies, loans secured by vehicles, and even basic identity theft associated with stolen checks,” said United States Attorney Sally Quillian Yates.  “The extensive nature of the fraud is unfortunate and breathtaking.  Prosecutions like this case help to highlight the vulnerabilities in the financial system, so that we can prevent future schemes and protect our citizens and government agencies from theft like this.”

“Nida and his conspirators were conniving and creative in their scheme to steal victims’ identities and defraud them. The United States Secret Service will continue to adapt its investigative methodologies to arrest criminals who use their technological savvy to violate unsuspecting victims such as those in this case,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.

“Many everyday citizens, legitimate businesses and taxpayers have been victimized by this complicated and long running fraudulent scheme.  After an intensive investigation with the cooperation of federal, state and local law enforcement, we are very pleased to at long last see this criminal brought to justice,” said John D. Sours, Administrator, Governor’s Office of Consumer Protection.

According to United States Attorney Yates, the charges and other information presented in court:  Beginning in August 2009, Nida, 35, of Atlanta, Ga., and others conspired to commit mail, wire, and bank fraud.  The conspirators obtained stolen checks by stealing them or buying them from other criminal associates.  The stolen checks involved in the scheme included United States Treasury Checks, as well as checks stolen from the pension fund of Delta Airlines.  Additionally, the conspirators obtained funds by filing fraudulent tax returns with the Internal Revenue Service and making fraudulent claims against the U.S. Department of Housing and Urban Development, and at least eleven states, all in the names of victims whose identities had been stolen. 

Many of these checks were mailed to a large network of mailboxes rented by the conspirators at UPS Stores in the Northern District of Georgia and throughout the nation, for eventual forwarding to the conspirators.  The conspirators also obtained fraudulent auto loans secured by vehicles that they had no ownership interest in whatsoever.  To convince banks to issue these loans, Nida and his conspirators created fake documents and websites appearing to belong to legitimate auto dealerships.

Once the conspirators obtained the stolen checks, they laundered them through numerous victim financial institutions.  Often, the conspirators laundered the checks by opening bank accounts in the names of the payees listed on the face of the checks.  This involved impersonating each payee and stealing his or her identity.  The conspirators prepared for these impersonations by researching their victims using databases like LexisNexis and Equifax, to which they obtained access through fake collection agencies they had opened as part of the scheme.  Sometimes, the conspirators negotiated checks by laundering them in bulk through accounts which appeared to belong to legitimate businesses, such as one in the name “Signature Tax Collections.”

The illegal conduct ended only when agents of the U.S. Secret Service confronted Nida and seized his laptop computer, pursuant to a search warrant, on September 13, 2013.

Assistant United States Attorney Alana R. Black is prosecuting the case.

This case is being investigated by the United States Secret Service and the Georgia Governor’s Office of Consumer Protection.

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

ROME, Ga. - Joseph Franklin Ellis has been sentenced to 14 years in prison for traveling from Alabama to Georgia to meet an undercover agent who said that he had 12-year-old and 5-year-old boys available for sex.

“Ellis made a decision to prey on innocent and vulnerable children when he traveled to have sex with them,” said United States Attorney Sally Quillian Yates.  “Because he was making the arrangements through an undercover officer, Ellis was stopped and his quest to molest children was ended.  These types of crimes are unimaginable and those who believe they can evade the law while carrying on this type of crime will learn as he did, you will be caught and you will go to jail.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “This case demonstrates the need to remain vigilant with regard to the protection of our children.  The FBI is committed to identifying, investigating, and presenting for prosecution individuals who have demonstrated the desire to exploit and harm children.”

According to United States Attorney Yates, the charges and other information presented in court: In February 2011, an undercover FBI task force officer placed a notice on a website designed for people to meet others for sexual purposes, saying that he had access to two minor boys.  Joseph Ellis began communicating with the undercover officer and believed that the officer had a 12-year-old boy and a 5-year-old boy that he would make available for sex.  Ellis wrote that he wanted to meet the undercover officer for the express purpose of having sex with the boys.  The two eventually made arrangements to meet on May 30, 2011, at a Hampton Inn in Ringgold, Ga., where Ellis would have sex with the two children.  When Ellis showed up at the arranged location, FBI agents attempted to arrest him.  Ellis fled and led the police on a high-speed chase that only ended when he crashed his car.

Joseph Franklin Ellis, 33, of Attalla, Ala., has been sentenced to 14 years in federal prison to be followed by 20 years of supervised release.  Ellis was convicted of these charges on February 25, 2014, after he pleaded guilty to attempting to have sex with minors.

This case was investigated by the Federal Bureau of Investigation.

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

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

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