Northern District of Georgia

ATLANTA - Amberula Levitt, who owned Tax Time Tax Service, a tax preparation business with multiple locations throughout metro Atlanta, has been sentenced to serve one year and nine months in federal prison for committing tax fraud on her own personal tax returns.  

“Individuals in the business of preparing tax returns for others should set an example of tax compliance,” said United States Attorney Sally Quillian Yates.  “Instead, Levitt used her knowledge and skills of the tax system defraud it.  For that, she will be punished.”

“While most preparers provide excellent service to their clients, a few dishonest return preparers give the industry a black eye,” stated IRS Criminal Investigation, Special Agent in Charge, Veronica F. Hyman-Pillot.  “Return preparers must comply with the same tax obligations as the clients that they serve.  No one is above the law.”

According to United States Attorney Yates, the charges and other information presented in court: From 2004 through 2010, Levitt owned and operated Tax Time Tax Service (“Tax Time”), a tax preparation business with multiple locations throughout metro Atlanta.  Levitt fraudulently under-reported her earnings from Tax Time on her personal tax returns.  For the years 2004 through 2009, Levitt owes approximately $620,000 in back taxes to the IRS.

Levitt has been sentenced by U.S. District Court Judge Amy Totenberg to one year, 9 months in prison to be followed by one year of supervised release, ordered to pay restitution to the IRS in the amount of $620,004, and complete 100 hours of community service.  Levitt, 45, of East Point, Ga., was convicted on two counts of filing false tax returns for the 2004 and 2005 tax years, after she pleaded guilty on October 29, 2013.

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

Trial Attorney Christopher J. Maietta of the Justice Department’s Tax Division and Assistant United States Attorney Steven D. Grimberg prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the 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 – Justin Cody, and his wife, Aeshia Wilmore, have been sentenced for their roles in a fraudulent income tax refund scheme.
                                                                       
“Stealing identities of innocent people has become all too common,” said United States Attorney Sally Quillian Yates. “The sentence these two received makes it clear that we are committed to exposing and bringing to justice anyone who engages in this conduct.”

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

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI is pleased with the role it played in bringing these defendants to justice.  The FBI will continue to provide its investigative resources and assets in protecting individuals’ identities and their use in these growing schemes involving false tax returns.”

According to United States Attorney Yates, the charges and other information presented in court:  From as early as February 2013 to May 2013, Justin Cody and his wife, Aeshia Wilmore, participated in a scheme to defraud the Department of the Treasury by filing hundreds of fraudulent income tax returns using stolen identities. This type of scheme is commonly called stolen identity refund fraud. Cody used stolen personal identification information of hundreds of victims, along with fake wage and withholding information, to prepare numerous fraudulent tax returns, claiming over $600,000 in tax refunds.  After the refunds were processed, Cody had the refunds applied to blank prepaid debit cards that he and Wilmore used at various ATM machines throughout the Atlanta area.  

Justin Cody, 33, of Atlanta, Ga., was sentenced to serve seven years and three months in federal prison.   Aeshia Wilmore, 25, also of Atlanta, was sentenced to two years in federal prison by United States District Judge Steve C. Jones.  On November 22, 2013, Cody and Wilmore each pleaded guilty to count three of the indictment, which is a substantive  count of theft of public funds.  Cody also pleaded guilty to aggravated identity fraud. 

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

Assistant United States Attorneys Karlyn J. Hunter and Nekia Hackworth prosecuted the case.

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

ATLANTA - Robert Lee Hatcher III, Willie Dewayne Lynch, Andrew Oliver, and Arthur James Freeman have been indicted by a federal grand jury on charges of defrauding and conspiring to defraud Home Depot. 

“These defendants are charged with participating in a scheme to defraud Home Depot over a period of several years, in ten states that span as far north as Kentucky and North Carolina, all the way south to Florida and west to Texas,” said United States Attorney Sally Quillian Yates. 

“The Secret Service has established a long history of protecting the American consumer and private industry from various types of prepaid and credit card fraud. This case illustrates not just the significance of an aggressive and cutting edge approach to combat this type of fraud, but also illustrates the importance of partnerships with state and local law enforcement agencies in protecting our nation’s electronic financial payment systems,” said Reginald Moore, Special Agent in Charge of the United States Secret Service in Atlanta.

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

After fraudulently purchasing the merchandise, Hatcher, Lynch, and Oliver removed the lower-priced UPC label, revealing the original, higher-priced UPC label.  Hatcher, Lynch, and Oliver then returned the fraudulently purchased merchandise to Home Depot without a receipt, in order to obtain refund credit cards in the amount of the actual, and higher, retail price of the merchandise.  Hatcher, Lynch, and Oliver then sold the refund credit cards to Freeman in exchange for cash in an amount less than the face value of the refund credit cards.  Defendant Freeman used the fraudulently obtained refund credit cards to purchase merchandise from Home Depot, which he used to stock inventory in two retail stores that he owns and operates in Atlanta, Ga., known as “Bargain Wholesale.”

Robert Lee Hatcher III, 31, of Atlanta, Ga., Willie Dewayne Lynch, 29, of Atlanta, Ga., have been arraigned before U.S. Magistrate Judge Justin S. Anand.  Arthur James Freeman, 53, of Atlanta, Ga., is scheduled to be arraigned on Friday April 25, 2014, before Judge Anand.  Andrew Oliver, 61, of Stone Mountain, Ga., is still at large.

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

Assistant United States Attorneys Teresa D. Hoyt and Jeffrey W. Davis are prosecuting the case.

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

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 - Six defendants, including three former police officers, pleaded guilty this week in federal court to accepting thousands of dollars in cash payments to provide protection during staged drug deals which were part of a federal undercover operation.  

“The audacity of police officers protecting drug deals is shocking,” said United States Attorney Sally Quillian Yates.  “For these police officers, protecting and serving our citizens was little more than a slogan, and their brazen actions are unacceptable.  Brave and honest law enforcement officers go to work every day to keep us safe, expecting their colleagues to serve the community unselfishly.  Instead, these officers put greed before all else.” 

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Public corruption investigations, particularly those involving law enforcement officers, remain one of the FBI’s top criminal investigative priorities.  The FBI extends its gratitude to its ATF partners for highlighting the corruption aspect of its case early on which allowed the FBI to dedicate its investigative resources accordingly.”

“These defendants took an oath to uphold the law and protect the citizens,” said ATF Acting Special Agent in Charge Ray Brown.  “Instead they betrayed the community they swore to protect.  Officers like these unfortunately tarnish the badge worn proudly by the committed men and women of law enforcement.  The success of this investigation would not have been possible without the dynamic level of law enforcement cooperation.”

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 and drug gang in August 2011.   During the investigation, 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. That individual could not specifically identify the officers but provided investigators with the officers’ nicknames.  Shortly after the investigation began, three individuals who have pleaded guilty, Shannon Bass, Jerry Mannery, and Elizabeth Coss, none of whom were police officers, provided officers’ names to a police informant and told the informant that the officers would provide security for drug deals in exchange for cash.

The public corruption investigation, conducted by FBI and ATF agents, lead to the indictment of ten law enforcement officers.  Three of the indicted officers have pleaded guilty.  They are: former Stone Mountain Police Officer Denoris Carter, 43, of Lithonia, Ga., former DeKalb County Police Officers Dennis Duren, 33, of Atlanta, Ga., and Dorian Williams, 25, of Stone Mountain., Ga.  All three officers were fired after their arrests in February 2013 and are no longer police officers.

In addition to the officers, three others pleaded guilty to their roles in the scheme: Shannon Bass, 39, of Atlanta, Ga., Elizabeth Coss, 36, also of Atlanta; and Jerry B. Mannery, 39, of Tucker, Ga.

Between April and September 2012, former Stone Mountain Police Department Officer Denoris Carter, working together with Jerry Mannery, provided protection for what he and Mannery believed were five separate transactions in the metro Atlanta, area which involved multiple kilograms of cocaine.  For all five transactions, Carter was on duty and dressed in his police uniform.  During one transaction, he drove up in his marked patrol vehicle, got out and walked through the parking lot to keep watch over the purported drug deal.  During the final transaction, Carter was on foot and wore a gun on his belt.  Denoris Carter pleaded guilty to one count of attempted distribution of cocaine and one count of extortion by accepting a bribe to use his position as a police officer to facilitate the deal. 

Between October 2011 and November 2011, former DeKalb County Police Officer Dennis Duren, working together with Shannon Bass, provided protection for what he and Bass believed were four separate drug deals in the Atlanta area.  During the transactions, Duren who was on duty, armed and in uniform, stood watch over the immediate area surrounding the undercover transaction. Dennis Duren pleaded guilty to one count of attempted distribution of cocaine and one count of extortion by accepting a bribe to use his position as a police officer to facilitate the deal.  Bass pleaded guilty to attempted distribution of cocaine.

Between January and February 2013, former DeKalb County Police Officer Dorian Williams, working together with Mannery and Bass, provided protection for what he believed to be three drug deals involving multiple kilograms of cocaine.  On each occasion, Williams was in uniform and carrying a gun.  He used his marked police vehicle to patrol the parking lots where the deals took place.  Williams admitted that he specifically protected the drug deals from interference from legitimate police officers.  Dorian Williams pleaded guilty to one count of attempted distribution and one count of extortion by accepting a bribe to use his position as a police officer to facilitate a deal.  Mannery pleaded guilty to conspiring with the police officers to distribute cocaine. 

Elizabeth Coss pleaded guilty to attempted distribution of cocaine for her role in working with former MARTA police officer Marquez Holmes, to provide security for a drug deal in August 2012.

The Court will likely sentence the defendants this summer.   

This case is being investigated by the Federal Bureau of Investigation and Bureau of Alcohol, Tobacco, Firearms and Explosives.

Assistant United States Attorneys Kim  S.  Dammers and Brent Alan Gray 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 - Amedisys Inc. and its affiliates (Amedisys) have agreed to pay $150 million to the federal government to resolve allegations that they violated the False Claims Act by submitting false home healthcare billings to the Medicare program, the Department of Justice announced today.  Amedisys, a Louisiana-based for-profit company, is one of the nation’s largest providers of home health services and operates in 37 states, the District of Columbia and Puerto Rico. 

“Home health services are a large and growing part of our federal health care system,” said Sally Quillian Yates, United States Attorney for the Northern District of Georgia.  “Health care dollars must be reserved to pay for services needed by patients, not to enrich providers who are bilking the system.”

“It is critical that scarce Medicare home health dollars flow only to those who provide qualified services,” said Stuart F. Delery, Assistant Attorney General for the Civil Division.  “This settlement demonstrates the department’s commitment to ensuring that home health providers, like other providers, comply with the rules and don’t misuse taxpayer dollars.”

The settlement announced today resolves allegations that, between 2008 and 2010, certain Amedisys offices improperly billed Medicare for ineligible patients and services.  Amedisys allegedly billed Medicare for nursing and therapy services that were medically unnecessary or provided to patients who were not homebound, and otherwise misrepresented patients’ conditions to increase its Medicare payments.  These billing violations were the alleged result of management pressure on nurses and therapists to provide care based on the financial benefits to Amedisys, rather than the needs of patients. 

Additionally, this settlement resolves certain allegations that Amedisys maintained improper financial relationships with referring physicians.  The Anti-Kickback Statute and the Stark Statute restrict the financial relationships that home healthcare providers may have with doctors who refer patients to them.  The United States alleged that Amedisys’ financial relationship with a private oncology practice in Georgia – whereby Amedisys employees provided patient care coordination services to the oncology practice at below-market prices – violated statutory requirements.

“Combating Medicare fraud and overbilling is a priority for my office, other components of the Department of Justice, and United States Attorneys’ Offices across the country,” said Zane David Memeger, United States Attorney for the Eastern District of Pennsylvania.  “We have recovered billions of dollars in federal health care funds from schemes such as the one alleged in this case.  Those are health care dollars that should be spent on legitimate medical needs.”

“Amedisys made false Medicare claims, depriving the American taxpayer of millions of dollars and unlawfully enriching Amedisys,” said Joyce White Vance, U.S. Attorney for the Northern District of Alabama.  “The vigorous enforcement work by assistant U.S. attorneys in my office, along with their colleagues in North Georgia, Eastern Pennsylvania, Eastern Kentucky and the Civil Division of the Justice Department, has secured the return of $150 million to the taxpayers and stands as a warning to future wrongdoers that we will aggressively pursue them.”

“This settlement represents a significant recovery of public funds and an important victory for the taxpayers,” said Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky.  “Fighting health care fraud and recovering tax payer dollars that fund our vital health care programs is one of the highest priorities for our district.”

Amedisys also agreed to be bound by the terms of a Corporate Integrity Agreement with the Department of Health and Human Services – Office of Inspector General that requires the companies to implement compliance measures designed to avoid or promptly detect conduct similar to that which gave rise to the settlement. 

“Improper financial relationships and false billing, as alleged in this case, can shortchange taxpayers and patients,” said Daniel R. Levinson, Inspector General for the U.S. Department of Health and Human Services.  “Our compliance agreement with Amedisys contains strong monitoring and reporting provisions to help ensure that people in Federal health programs will be protected.”

This settlement resolves seven lawsuits pending against Amedisys in federal court – six in the Eastern District of Pennsylvania and one in the Northern District of Georgia – that were filed 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.  As part of today’s settlement, the whistleblowers – primarily former Amedisys employees – will collectively split over $26 million.

This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Secretary of Health and Human Services Kathleen Sebelius.  The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.  One of the most powerful tools in this effort is the False Claims Act.  Since January 2009, the Justice Department has recovered a total of more than $19.2 billion through False Claims Act cases, with more than $13.6 billion of that amount recovered in cases involving fraud against federal health care programs.

The United States’ investigation was conducted by the Justice Department’s Commercial Litigation Branch of the Civil Division; the United States Attorneys’ Offices for the Eastern District of Pennsylvania, Northern District of Alabama, Northern District of Georgia, Eastern District of Kentucky, District of South Carolina, and Western District of New York; the Department of Health and Human Services’ Office of Inspector General; the Federal Bureau of Investigation; the Office of Personnel Management’s Office of Inspector General; the Defense Criminal Investigative Service of the Department of Defense; and the Railroad Retirement Board’s Office of Inspector General.

The lawsuits are captioned United States ex rel. CAF Partners et al. v. Amedisys, Inc. et al. 10-cv-2323 (E.D. Pa.); United States ex rel. Brown v. Amedisys, Inc. et al., 13-cv-2803 (E.D. Pa.); United States ex rel. Umberhandt  v. Amedisys, Inc., 13-cv-2789 (E.D. Pa.); United States ex rel. Doe et al. v. Amedisys, Inc., 13-cv-3187 (E.D. Pa.); United States ex rel. Ognen et al. v. Amedisys, Inc. et al. 13-cv-4232 (E.D. Pa.); United States ex rel. Lewis v. Amedisys, Inc., 13-cv-3359 (E.D. Pa.); and United States ex rel. Natalie Raven et al. v. Amedisys, Inc. et al., 11-cv-0994 (N.D. Ga.).  The claims settled by the agreement are allegations only, and there has been no determination of liability. 

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

ATLANTA – Angela Pratt Avery pleaded guilty in federal court to fraudulently obtaining FEMA assistance funds intended for the victims of Hurricane Ike.

“These defendants lied by claiming they were victims of Hurricane Ike in 2008 and, based on those lies, stole over $50,000 in disaster relief funds that were intended for the true victims,” said United States Attorney Sally Quillian Yates.  “The Disaster Fraud Task Force was created in 2005 to target those fraudsters who would seek to turn the tragedy of a natural disaster into an opportunity to enrich themselves at the expense of the American people.”

“I am pleased by today’s guilty plea. DHS-OIG will continue its commitment towards working with this U.S. Attorney's Office and our law enforcement partners to identify and aggressively investigate these egregious violations,” said James Ward, Special Agent in Charge, Office of Investigations, Atlanta, Department of Homeland Security, Office of the Inspector General.  “In the future, DHS-OIG will remain vigilant in seeking prosecutions in such cases to uphold the integrity of our Federal Emergency Programs, which are intended for law abiding citizens."

According to United States Attorney Yates, the charges and other information presented in court:  Avery, 45, of Lawrenceville, Ga., and two co-defendants, John A. Wheeler, 57, and Melody Lockett Carter, 49, both of Wilmerding, Pa., worked together to file three fraudulent FEMA claims for Hurricane Ike disaster relief funds.  The defendants filed the claims in September 2008 and January 2009, falsely claiming that Avery and Carter lived at a West Ventura Drive address in Galveston, Texas, at the time of Hurricane Ike and that their personal property had been damaged by the storm.  In fact, all three defendants lived in Norcross, Ga., at the time of Hurricane Ike and were not victims of the storm.  The defendants received over $50,000 in disaster assistance from FEMA based on their fraud.

On September 13, 2008, Hurricane Ike made landfall near Galveston, causing widespread damage along the Texas, Louisiana, Mississippi, and Florida coastlines and the surrounding areas.  After Hurricane Ike struck the Texas coastline, FEMA provided financial disaster assistance to displaced individuals who resided in various counties in Texas.  Those individuals could make an application for disaster assistance funds by filing a claim with FEMA that included the Texas address where they were living at the time of the hurricane.

Avery pleaded guilty to one count of theft of government money.  On January 10, 2014, Wheeler and Carter each pleaded guilty to one count of theft of government money.  Sentencing for the defendants has not yet been scheduled.

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

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

In September 2005, the Attorney General established the Disaster Fraud Task Force to deter, detect, and prosecute disaster-related federal crimes such as charity fraud, identity theft, procurement fraud, and insurance fraud related to the Hurricane Katrina disaster.  As multiple disasters occurred in subsequent years, the Task Force expanded its mandate to all types of disaster fraud.  The Task Force, chaired by Acting Assistant Attorney General David O’Neil of the Criminal Division, includes the FBI, the Postal Inspection Service, the U.S. Secret Service, the Federal Trade Commission, the Securities and Exchange Commission, federal Inspectors General, and various representatives of state and local law enforcement.

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 jury found Mauricio Warner guilty of using the identities of thousands of unsuspecting individuals to file federal tax returns claiming over $5 million in bogus refunds. 

“This verdict represents yet another conviction in a series of recent cases involving identity thieves who use the personal information of unsuspecting victims to file bogus tax returns and steal millions of dollars from the U.S. Treasury,” said United States Attorney Sally Quillian Yates.  “We will continue to do all we can to stop these schemes and protect our citizens identities from theft.”

“Despite all of the notices from the IRS, financial institutions, and even criminal investigators, that his actions were criminal, Mr. Warner continued to steal from the government,” said Veronica Hyman-Pillot, Special Agent in Charge, IRS-Criminal Investigation.  “Today, a jury of his peers gave Warner his final notice; ‘guilty’ of committing fraud.  IRS-CI is proud to have been a part of bringing justice to Mr. Warner, and to those who are victims of identity theft.”

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

The United States has seized seven bank accounts controlled by Warner that contain $4,185,455.31 in funds derived from or involved in this scheme.

Warner was convicted on 16 counts of wire fraud, 16 counts of aggravated identity theft, 16 counts of filing false claims, and two counts of money laundering.  He was taken into custody after the verdict.  The United States is also seeking the forfeiture of all funds derived from or involved in this scheme. 

Sentencing for Warner, 38, of Smyrna, Ga., is scheduled for June 25 at 2:00 p.m. before United States District Judge Charles A. Pannell, Jr.  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.

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

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

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

ATLANTA - Synthetic drugs are a growing problem that threaten the health and safety of the younger population across Georgia.  As these drugs — commonly marketed under nonthreatening labels such as “bath salts,” spice,” or “molly”— have increased in popularity, communities have struggled to understand what these substances are and the threats they present.

“Synthetic drugs pose a deadly danger for our young people who, in search of a ‘good time,’ choose to ignore the risks,” said United States Attorney Sally Quillian Yates.  “Our ability to turn the tide on this growing problem is not just through prosecutions and convictions; it is through education as well.  We are seeking the help of those who touch every part of a child’s life to help reinforce the message that synthetic drugs -- by whatever name they are called -- is not the way to go.”

Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division commented, “The sale of synthetic drugs has become a growing problem locally, regionally and nationally. These drugs are made from a variety of dangerous chemical compounds that can be fatal upon one use. This educational summit is a proactive step in combatting the growing trend of synthetic drug abuse. Each stakeholder can contribute a positive course of action to combat this growing problem.”

Mistakenly perceived as legal alternatives to illicit drugs such as marijuana, ecstasy, and LSD, synthetic drugs also have the unfortunate street reputation of being safer to consume than traditional illegal drugs. In fact, the real consequences of abusing these drugs are far different.  Consumption of synthetic drugs has been linked to multiple fatalities in Georgia alone.  Moreover, many of the more popular substances have been linked with serious health problems including seizures, panic disorders, and kidney and liver failure, to name just a few. The effects are unpredictable, because the substances often contain a number of unknown drugs chemicals at varying potencies, so that the consumer has no idea what he or she is taking, and those who manufacture these substances constantly change their chemicals and formulas in an effort to stay hidden from law enforcement.

To promote better understanding in combating this problem, the U.S. Attorney’s Office for the Northern District of Georgia, the Drug Enforcement Administration, the Georgia Bureau of Investigation, and the Georgia World Congress Center Department of Public Safety are conducting this summit to explore the abuse of synthetic drugs in Georgia. This one-day summit, happening April 15, 2014, features prominent speakers from law enforcement, public health, and drug abuse victims who seek solutions to these problems.

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

ATLANTA - Shantel Bowens, Debbie Bailey, and Babatunde “Babs” Abass have been arraigned on charges of stealing funds from the federal Housing Choice Voucher Program, also known as “Section 8,” which provides rental assistance to low-income families. 

“These defendants stole federal funds designed to help families afford safe and decent housing,” said United States Attorney Sally Quillian Yates.  “In addition, the two defendants who were employed by the City of Marietta violated the public trust by abusing their positions in order to divert public money for their own use.”

“This indictment should send a strong message that HUD-OIG will aggressively pursue landlord fraud, especially when it is facilitated by persons in positions of public trust,” said Lester Fernandez, Special Agent in Charge for Region 4, U.S. Department of Housing and Urban Development – Office of Inspector General.  “In partnership with state and local law enforcement and federal agencies, we are deeply committed to ensuring that scarce resources are not diverted to those who seek to enrich themselves. We will continue to seek program accountability and promote honest stewardship of taxpayer funds by grantees entrusted with taxpayer monies.”

“We always deeply regret the theft of public funds, but I am grateful that we have highly qualified City employees, whom we can count on to alert us to issues such as these,” said Mayor Steve Tumlin.  “It is important to note that City Staff uncovered these discrepancies which were vigorously investigated by our own Police Department and in turn given to Federal authorities.  The City strongly supports the prosecution of those responsible and we seek to ensure this type of crime never happens again.”

“The City of Marietta takes our responsibility to be good shepherds of Federal funds very seriously,” said Marietta Police Chief Dan Flynn.  “Thus when our internal auditing process uncovered irregularities with Section 8 funds our City staff promptly referred the matter to the Marietta Police Department.  When the police department investigation confirmed possible theft by former employees, we promptly notified our Federal HUD partners and the U.S. Attorney’s Office, and together we worked to expose the entire theft scheme and bring the responsible individuals into the criminal justice system.  Overall, we appreciate the seamless cooperative manner in which our local and Federal partnership functioned and we fully support the U.S. Attorney’s Office in the on-going prosecution of this case.  We believe it will send the right message that we are united and will not tolerate any theft of public funds.”

According to United States Attorney Yates, the charges, and other information presented in court: Bowens and Bailey were employed by the City of Marietta and were responsible for administering landlord and tenant enrollment for Section 8 participants in Marietta.  To defraud the Section 8 program, Bowens and Bailey first identified former tenants who had been terminated from the program and reactivated the tenants’ accounts.  They specifically chose tenants who were listed as unemployed or as having very low incomes, which would result in larger Section 8 payments. 

Bowens and Bailey then altered computer records, linking the terminated tenants to Abass and Tunji “Chris” Imoukhuede, who were already registered as Section 8 landlords.  As a result, the falsified computer records indicated that the terminated tenants were residing at properties purportedly owned by Imoukhuede and Abass.  In fact, Imoukhuede and Abass did not own or rent the properties, and they were not the landlords of the terminated tenants.    

As a result of Bowens’ and Bailey’s falsification of landlord, tenant and rental property information, federal Section 8 payments were issued to bank accounts controlled by Imoukhuede and Abass.  In turn, Imoukhuede and Abass each withdrew the money and kept approximately 40 percent for himself.  Each landlord then gave approximately 60 percent of the stolen funds to Brown, who split that amount with Bowens. 

The scheme took place from January 2011 through June 2013.  During that period, Marietta’s Housing Choice Voucher Program received over $4 million annually in Section 8 funds from the United States Department of Housing and Urban Development.  As a result of the fraud, Bowens, Bailey, Imoukhuede and Abass obtained over $230,000 in federal funds.

In addition, from January 2010 through June 2013, Bowens arranged for a landlord enrolled in the Section 8 program to receive funds for a fictional tenant who was purported to be Bowens’ aunt.  In fact, Bowens herself moved into the landlord’s property and lived there rent-free for over three years.  Bowens’ housing costs, paid for through Section 8, totaled over $40,000.

Shantel Bowens, Debbie Bailey, Tunji “Chris” Imoukhuede, and Babatunde “Babs” Abass were indicted by a federal grand jury on March 25, 2014.  Tunji Imoukhuede will be arraigned at a later date.

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 was investigated by the U.S. Department of Housing and Urban Development Office of the Inspector General, the City of Marietta, and the Marietta Police Department.   

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

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

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

ATLANTA – Last week Attorney General Eric Holder warned U.S. taxpayers to beware a “rising threat” of scammers seeking fraudulent federal tax refunds based on stolen identities, which he described as an “increasingly urgent problem.”  He should know. Attorney General Holder has been the victim of identity theft himself.

“Tax cheats come in many different stripes,” said United States Attorney Sally Quillian Yates.  “Some steal identities and use them to file fraudulent tax returns, while others file fraudulent tax returns in their own name.  Either way, all hardworking citizens who pay their own fair share of taxes are the victims.  As the tax filing deadline nears, we want to remind members of our community that we will investigate and prosecute tax fraud in all its various forms.” 

Indeed, the U.S. Attorney’s Office for the Northern District of Georgia has prosecuted over 20 individuals over the last 12 months for so-called Stolen Identity Refund Fraud.  These cases charge individuals who use third-party personal information – names, social security numbers, and dates of birth – to file false federal tax returns for refunds.  Many times the victims, whose information is taken through internet scams or from public sources, do not realize that their identity has been stolen until they try to file a tax return of their own with the IRS, only to learn that someone else has already filed a tax return in their name. 

"These unscrupulous defendants thought they had devised clever schemes to thwart the IRS and steal from American taxpayers" stated Veronica F. Hyman-Pillot.  “As the defendants in these cases have learned, stealing from the American people will not be tolerated and you will be held accountable.  IRS Criminal Investigation, along with its law enforcement and Department of Justice partner's, will continue to actively investigate those individuals who prey on unsuspecting victims and try to undermine the integrity of the U.S. tax system."

“These cases affirm that the Department of Justice is committed to investigating and prosecuting all types of tax fraud,” said Assistant Attorney General for the Tax Division Kathryn Keneally.  “I thank the U.S. Attorney’s Office and IRS-Criminal Investigation for their diligent efforts to fight tax fraud, and we in the Tax Division will continue to work with our law enforcement partners to bring tax cheats to justice.”

In addition to Stolen Identity Refund Fraud prosecutions, federal prosecutors in the Northern District of Georgia, in conjunction with the U.S. Department of Justice Tax Division, and Special Agents of the Internal Revenue Service Criminal Investigation, continue to investigate and prosecute more “traditional” tax fraud cases, where individuals are charged with fraudulently filing tax returns of their own. 

          Current tax prosecutions include the following:

• Earlier this week, Kenneth and Kimberly Horner of Conyers, Ga., were arraigned before United States Magistrate Judge Gerrilyn G. Brill on an indictment that charges them with four counts of filing false personal and corporate tax returns for the years 2007 and 2008.  The indictment alleges that the Horners, who owned and operated Topcat Towing and Recovery, Inc., materially underreported gross receipts or sales and total income on their corporate and personal tax returns, respectively. 


• On April 29, 2014, Amberula Levitt, of East Point, Ga., is scheduled to be sentenced following her guilty plea in October 2013, to willfully filing false tax returns.  According to the indictment and other information presented in court, Levitt operated Tax Time Tax Service (“Tax Time”), a tax preparation business with multiple locations throughout metro Atlanta.  Levitt fraudulently under-reported the earnings from Tax Time on her personal tax returns.  For the years 2004 through 2009, Levitt owes approximately $620,000 in back taxes to the IRS. 


• On March 6, 2014, DeMarco Doxie of Peachtree City, Ga., was arraigned on a superseding indictment charging him with multiple wire and mail fraud counts, and four counts of filing false tax returns for the years 2008 through 2011.  The indictment alleges that from June 2007 through August 2011 Doxie defrauded his employer by creating a fictitious company that he then used to submit to his employer numerous fraudulent invoices for payment.  The indictment further charges that Doxie materially underreported his income on his personal income tax returns from 2008-2011.

And as an example of the long memory federal law enforcement can have, Ali Ibrahim, formerly of Tucker, Georgia, pled guilty on February 5, 2014 to federal tax evasion for underreporting his taxable income on his 1990 tax return.  Ibrahim became a fugitive from justice following his indictment in January 2001, only to be arrested and extradited from Canada almost 13 years later in December 2013.  Ibrahim was sentenced on March 26, 2014 to a time served sentence of approximately 18 months.   

Members of the public are reminded that indictments only contain charges.  A 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.

These cases are being investigated by the Internal Revenue Service Criminal Investigation. 

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

ATLANTA - Bonnie Monique Youn has been arraigned on federal charges that she submitted false documentation to the United States on behalf of a client who was an alien seeking lawful permanent resident status in the United States, inducing the alien to reside unlawfully in the United States, and witness tampering. 

“We expect lawyers to uphold and defend the rule of law, not assist clients in breaking the law, as Ms. Youn is charged in this indictment,” said United States Attorney Sally Quillian Yates.  “Specifically, Ms. Youn is charged with obtaining legal status for a client in this country by filing false documents with the United States Government, and encouraging them to lie to federal agents.”

“The defendant stands accused of illegally attempting to manipulate our immigration system for her own personal gain,” said HSI Atlanta Special Agent in Charge Brock Nicholson. “Homeland Security Investigations and the partner agencies on our Document and Benefit Fraud Task Force work diligently to preserve the integrity of our immigration system by aggressively investigating these types of fraud.”

According to United States Attorney Yates, the charges and other information presented in court: From February 9, 2009, to the present, Bonnie Monique Youn, an immigration attorney, encouraged and induced an alien, identified by her initials in the indictment, to reside in the United States in violation of the law, and for Youn’s financial benefit.  Youn also filed documents with immigration that were false with respect to material facts, thereby engaging in visa fraud.  Then, once the investigation was underway, Youn engaged in witness tampering by contacting the alien and encouraging her to provide false information to federal agents when they questioned her. 

Bonnie Monique Youn, 44, of Atlanta, Ga., was arraigned today before United States Magistrate Judge Gerrilyn G. Brill.  Youn, who was indicted by a federal grand jury on April 1, 2014, was released on a $25,000 unsecured bond, and ordered to surrender her United States passport.

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

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

Assistant United States Attorneys Susan Coppedge and William L. McKinnon, Jr.  are prosecuting the case.

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

ATLANTA - Antonio T. Hurt pleaded guilty to stealing nearly $2 million from a federal program that partially reimburses daycare centers for the cost of meals for needy children.

“This defendant stole nearly $2 million in funds intended to feed underprivileged children,” said United States Attorney Sally Quillian Yates.  “This critically important program provides basic sustenance for those most in need.  Instead of paying for school day nutrition, he used the money to expand his daycare business, lease luxury cars, buy jewelry, and pay for other personal expenses.  We will continue to hold accountable those who siphon off public funds for personal use.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI remains well positioned to identify, investigate, and present for prosecution those individuals such as Mr. Hurt who would steal from the much needed and publicly funded federal programs such as the Child & Adult Care Food Program, all for their own personal gain.  Today’s guilty plea ensures that this defendant, who demonstrated extraordinary greed as well as disregard for so many, will be held accountable for his criminal actions.” 

“On behalf of the Georgia children and families who rely on this program, I want to thank U.S. Attorney Sally Quillian Yates and the Northern District of Georgia for bringing Dr. Hurt to justice,” said Bobby Cagle, Commissioner of Bright from the Start: Georgia Department of Early Care and Learning (DECAL), the state agency responsible for administering the Child and Adult Care Food Program (CACFP).  “No amount of waste or fraud or even attempted waste or fraud will be tolerated and we will continue to turn these cases over for criminal prosecution and seek restitution wherever it is appropriate.  This is literally taking food from those who need it most--infants, young children, the elderly, and chronically impaired disabled persons.  Those who would take advantage of this program through fraud or deception have now been warned.”

“USDA-OIG’s investigative branch will continue to work diligently with the US Department of Justice and its law enforcement partners in investigating and prosecuting individuals and organizations who defraud the CACFP and all other USDA funded assistance programs,” said Karen Citizen-Wilcox, Special Agent-in-Charge, USDA-OIG-Investigations. 

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

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

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

Hurt, 38, of Baltimore, Md., was formerly a Georgia high school principal.

Sentencing is scheduled for June 18, 2014, at 2:00 p.m. before United States District Judge Amy Totenberg.

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

Assistant United States Attorney David M. Chaiken is prosecuting the case.

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

ATLANTA – April 6, 2014, marks the beginning of “National Crime Victim’s Rights Week,” a time to honor crime victims, celebrate our nation’s progress in advancing their rights, and work toward future goals.  This year the Northern District of Georgia celebrates the 30th Anniversary of the Victims of Crime Act.

“It is appropriate for us to pause every year to remember the suffering of crime victims and their loved ones and to recommit ourselves to support them and to facilitate their healing and restoration,” said United States Attorney Sally Quillian Yates.  “This year’s theme for Crime Victims’ Rights Week, ‘30 Years: Restoring the Balance of Justice,’ not only marks the tremendous growth and advancement of victims’ rights and services, but looks forward to continuing to expand the reach of victim service programs.  Crime impacts not only the victim but also the victim’s family and community, and we must be mindful of this in every case we investigate and prosecute.”

Crime Victims’ Rights Week is marked nationwide not only by the Department of Justice and all of its United States Attorney's Offices, but by other federal, state and local participating agencies.  Many of the agencies and community programs receive financial, volunteer, and other support to maintain their services for crime victims.

Every year, the United States Department of Justice’s Office for Victims of Crime (OVC) awards millions of dollars to supplement Georgia’s crime victim compensation program, which allows crime victims to receive financial help with their medical bills and other crime-associated expenses.

Here in the Northern District of Georgia, the number of federal cases alone demands an extraordinary effort to support and notify victims.  Last year, our office, through our Victim-Witness Unit, notified 17,425 federal crime victims about matters including their rights as crime victims, the times of court hearings, and outcomes of court proceedings.

In addition, fines and penalties collected each year by U.S. Attorneys, the U.S. Courts and the Bureau of Prisons are deposited into the Crime Victims Fund and are available for grant awards the following year.  This fund was established by the Victims of Crime Act of 1984 (VOCA) and is administered by OVC.  In 2013, approximately $730 million was allocated into this fund for crime victim assistance and compensation. 

This year, as we celebrate three decades of defending victims’ rights, we are reminded of how far we have come—and how much work is yet to be done. Only 30 years ago, crime victims had virtually no rights and no assistance. The criminal justice system often seemed indifferent to their needs. Victims were commonly excluded from courtrooms and denied the chance to speak at sentencing. They had no access to victim compensation or services to help rebuild their lives. There were few avenues to deal with their emotional and physical wounds. Victims were on their own to recover their health, security, and dignity.

Our nation has made dramatic progress in securing rights, protections, and services for victims. Every state has enacted victims’ rights laws and all have victim compensation programs. More than 10,000 victim service agencies now help people throughout the country. In 1984, Congress passed the bipartisan Victims of Crime Act (VOCA), which created a national fund to ease victims’ suffering. Financed not by taxpayers but by fines and penalties paid by offenders, the Crime Victims Fund supports victim services, such as rape crisis and domestic violence programs and victim compensation programs that pay many of victims’ out of-pocket expenses from the crime, such as counseling, funeral expenses, and lost wages.

Victims’ rights advocates have scored remarkable victories over the last 30 years. But there is still a lot of work to be done. As we move forward, we are increasingly expanding our reach to previously underserved victim populations, including victims of color, American Indians and Alaska Natives, adults molested as children, victims of elder abuse, and LGBTQ victims. Over three decades, VOCA pioneered support efforts for victims of once-hidden crimes, like domestic and sexual violence. Today, we are shining a spotlight on other abuses that have long been unreported and often not prosecuted—hate and bias crimes, bullying, and sex and labor trafficking, among others.

“Our commitment to reaching every victim of crime is stronger than ever,” said Joye E. Frost, Director, Office for Victims of Crime (OVC), U.S. Department of Justice. “For 30 years, VOCA has represented hope, healing, and justice. Our message to all victims of crime is this: You are not alone.”

Information about Georgia's victim assistance and crime victim compensation programs can be found through the Criminal Justice Coordinating Council.  Barbara Lynn Howell, the Agency's Executive Director, can be reached at 104 Marietta Street, Suite 440, Atlanta, Georgia, 30303, or by telephone at 404-657-1956

For more ideas on how to volunteer to help crime victims, visit the Office for Victims of Crime website, www.ovc.gov , or by calling the Office for Victims of Crime at 202-307-5983.

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 pleaded guilty to offering bribes to Doraville employees to obtain a zoning change for his business.

“Bae attempted to buy his way around certain zoning restrictions by offering bribes to Doraville employees,” said United States Attorney Sally Quillian Yates. “But, we all play by the same rules. As expected, those employees reported Bae’s conduct and, as a result, Bae has been brought to justice.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “While this case serves to remind us of those individuals so willing to violate the law at any level, it should also reaffirm a faith in our public servants who saw this for what it was and reported it to the proper authorities.  The FBI will continue to dedicate significant investigative resources as we work with our various law enforcement partners in combating public corruption.”

“Doraville is thankful to be able to work in partnership with the FBI.  Public corruption erodes the confidence and trust that our citizens have in our government officials and employees,” said Doraville Police Chief John King.  “Doraville Police works tirelessly with the citizens and our partnering law-enforcement agencies to make sure that our city is free of corruption and filled with trust.”

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 (“Staff Member”) 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 Staff Member and an undercover officer (“UC”), who was posing 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 Staff Member 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 December 3, 2013, Bae, 35, of Duluth, Ga., was indicted by a federal grand jury on charges of wire fraud and bribery. Today, Bae pleaded guilty to one count of honest services wire fraud.  In determining Bae’s sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders. 

The sentencing hearing is scheduled for June 30, 2014, at 10:00, before United States District Judge Thomas W. Thrash, Jr.

This case is being 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 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 - Adrian Banks has been arraigned on federal charges relating to the manufacture of PCP which led to a dangerous house fire when the clandestine laboratory exploded.  Coleman Warnock, a second defendant named in the indictment, is being sought by law enforcement.

“An entire neighborhood was put at risk by the explosion of this PCP lab,” said United States Attorney Sally Quillian Yates.  “This type of drug also puts our entire community at risk.  Thankfully, this lab is out of business and our citizens in that neighborhood are safe.”

Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division commented on the case, “These volatile chemicals are venomous to the consumer and leave behind a trail of devastation and destruction by those who manufacture it, as was the case in this investigation. Because of the collective efforts of local, state and federal law enforcement, these defendants will have to face the consequences of their unlawful acts.”

“Not only were these men putting dangerous drugs on the street, they were also endangering completely innocent people by operating a PCP lab in a neighborhood,” said Georgia Bureau of Investigation Director Vernon Keenan.  “We will continue to work with our local and federal partners to insure people who endanger the lives of others are held accountable.”

According to United States Attorney Yates, the charges and other information presented in court:  On July 6, 2013, Fulton County Fire/Rescue responded to a citizen’s call about a house fire in a Fairburn, Ga., neighborhood.  The house was destroyed after burning for almost two days. Further investigation revealed the presence of numerous barrels and canisters of chemicals suggesting the presence of a large, clandestine, PCP lab in the residence. No one other than the individuals involved in the manufacture of PCP was harmed in the fire.

On January 14, 2014, a federal grand jury returned an indictment against the defendants, Coleman Warnock, 41, of Powder Springs, Ga. and Adrian Banks, 39, of Atlanta, Ga., charging them with one count of conspiracy to manufacture PCP, four counts related to the manufacture of at least one kilogram of PCP, and one count of creating a substantial risk of harm to human life while attempting to manufacture PCP.

On January 16, 2014 Adrian Banks was arrested and has been detained.  Coleman Warnock remains a fugitive.  If anyone has any information on Warnock’s whereabouts please contact the DEA at (404) 893-7000.

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.

The Drug Enforcement Administration is leading the investigation of the case. The Georgia Bureau of Investigation, Fulton County Fire/Rescue, Fulton County Police, Fulton County Fire Department Hazmat Team, SWS Environmental Services, the Georgia State Fire Marshal’s Office, the Atlanta Fire Department, and the Atlanta Fire Department Clandestine Laboratory Enforcement Team have also been involved in the clean-up of the residence and investigation of the case.

Assistant United States Attorney Vivek Kothari 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 – Heath J. Kellogg and Stacy P. Smith have been sentenced to federal prison for counterfeiting offenses.

“These defendants--who referred to their counterfeit money as ‘Monopoly,’ as if it were some kind of game--effectively stole from thousands of businesses, nonprofit organizations, and citizens throughout Georgia and the United States,” said United States Attorney Sally Quillian Yates.  “Counterfeiting is far from a victimless crime because the person who unknowingly accepts the counterfeit bill usually absorbs the full amount of the loss.  In this case, the victims included citizens, churches, and family-run businesses, as well as banks and large retail stores.”

“Every person, business or organization that receives a counterfeit note is a victim, and as such experiences a real economic loss. The United States Secret Service will continue to take an aggressive approach to arrest criminals like Smith and Kellogg. These sentences should be a warning to other like-minded criminals that manipulating and stealing from the American people will not go unpunished,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.

According to United States Attorney Yates, the charges and other information presented in court:  From approximately February 1, 2011 until November 15, 2012, the defendants conspired to manufacture and distribute counterfeit U.S currency.  The defendants focused on $50 bills, but also manufactured $20 bills. Heath Kellogg, a self-taught graphic artist, developed a manufacturing process for counterfeit currency. Smith helped Heath Kellogg manufacture the counterfeit currency, and both men purchased supplies on various occasions.

Smith distributed the counterfeit currency through a network of individuals, which ultimately spread the bills throughout the United States. Smith and Heath Kellogg used feedback from their ultimate customers, who victimized businesses, individuals and banks by passing the counterfeit currency in the community, to refine and improve their manufacturing process over time. The defendants sold the counterfeit currency to customers in exchange for genuine U.S currency, at various discounted rates.

On November 15, 2012, Secret Service agents executed search warrants yielding a wide variety of physical evidence, including completed and partially completed counterfeit currency, a large roll of special paper of the sort used in commercial printing presses, numerous printers, and a flash drive containing encrypted digital files with high definition images of various features of the counterfeit bills. 

The counterfeiting operation was extensive. The Secret Service reports that counterfeit currency matching the distinctive characteristics of those produced by the defendants totaling over $1.4 million in face value has been returned to it by local police departments, banks, merchants and individuals victimized when the counterfeit currency was passed.  The counterfeit currency was returned to the Secret Service from victims across the United States and internationally.

Heath J. Kellogg was sentenced on Friday, March 24, 2014 to twelve years in federal prison, to be followed by three years of supervised release.  Heath Kellogg was convicted on November 5, 2013 of one count of conspiracy to counterfeit and deal in counterfeit obligations of the United States in violation of 18 U.S.C. § 371, two counts of counterfeiting currency in violation of 18 U.S.C. § 471, and two counts of dealing in counterfeit obligations in violation of 18 U.S.C. § 473, after pleading guilty to the Indictment.  At sentencing, the court found Kellogg responsible for manufacturing counterfeit currency with a face value of over $1 million.

Smith was sentenced on Wednesday, March 26, 2014, to three years in federal prison, to be followed by three years of supervised release.  Smith was convicted, on his plea of guilty on June 11, 2013, of one count of counterfeiting obligations or securities of the United States in violation of 18 U.S.C. § 471.  At sentencing, the court found Smith responsible for manufacturing counterfeit currency with a face value of over $1 million.

Four co-defendants in the same case were previously sentenced after pleading guilty:

• Kenyada Barrion, 37, of Lithonia, Ga., was sentenced on August 28, 2013, to eighteen months in federal prison, to be followed by three years of supervised release.  Barrion was convicted on March 27, 2013, of dealing in counterfeit obligations of the United States.  

• Cameron Longshore, 31, of Atlanta, Ga., was sentenced on October 10, 2013, to one year and one day in federal prison, to be followed by three years of supervised release.  He was convicted August 1, 2013, of a single count of dealing in counterfeit obligations. 

• Ian Longshore, 28, of Atlanta, Ga., was also sentenced on October 10, 2013, to one year and one day in federal prison, to be followed by three years of supervised release.  He was convicted on August 1, 2013, of a single count of dealing in counterfeit obligations. 

• James Kellogg, 63, of Marietta, Ga., was sentenced on December 2, 2013, to five years of probation, including six months of home confinement.  James Kellogg was convicted on June 11, 2013, of conspiracy to counterfeit and deal in counterfeit obligations of the United States.

This case was investigated by the United States Secret Service. 

Assistant United States Attorney Alana R. Black prosecuted the case.

Anyone can become the victim of currency counterfeiters.  To learn more about how to detect counterfeit currency and guard against forgery loss, visit the Know Your Money websites maintained by the United States Secret Service at:  http://www.secretservice.gov/know_your_money.shtml and http://www.newmoney.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 - LaTonya Evans has been indicted by a federal grand jury on conspiracy and armed robbery charges for her role in planning a postal robbery in Conley, Ga., on December 20, 2013—a robbery that resulted in the near-fatal shooting of a postal truck driver by two other defendants charged with Evans in the same indictment. 

“Evans is charged with exploiting her inside knowledge of the Postal Service for personal profit,” said United States Attorney Sally Quillian Yates.  “The conspiracy she is charged with participating in resulted in the near-death of a fellow postal worker whom Evans knew.  The indictment charges that he was shot, bound, and left for dead by Evans’ co-defendants.  We will always aggressively prosecute anyone who commits this kind of horrendous act.”

“The U.S. Postal Inspection Service’s mission and priority is the protection of postal employees,” said Keith Fixel, Postal Inspector in Charge, Charlotte Division.  “Acts of violence are crimes of unspeakable consequences which Postal Inspectors will investigate with rigorous tenacity.  While the investigation included a postal employee, Evans’ actions do not represent the vast majority of postal employees committed to doing their jobs.”

According to United States Attorney Yates, the indictment, and other information presented in court:  LaTonya Evans helped to develop the scheme to rob a postal truck, and worked with co-defendants Kendrick Watkins and Charles Jackson to carry out the plan.  Evans met with Watkins and Jackson to plan the robbery of the postal truck driver.  On December 20, 2013, during a routine pick-up in Conley, Ga., Jackson and Watkins approached the U.S. Postal employee who was driving the truck and demanded the keys to the postal truck.  When the victim did not immediately comply, the men shot him in the torso, nearly taking his life.  The robbers then bound the victim’s feet and took his cell phone so that he could not run or call for help.  Jackson and Watkins drove away with the stolen truck and all its contents and met with Evans afterwards to discuss the robbery.  The victim was forced to crawl several hundred feet to the nearest road where he flagged down a passerby for help.

LaTonya Evans, 44, of Jackson, Ga., has been charged along with Kendrick Watkins, 39, of Rex, Ga., and Charles Jackson, 55, of Griffin, Ga.  Watkins and Jackson are accused of carrying out the armed robbery and shooting.

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 defendant’s guilt beyond a reasonable doubt at trial.

This case is being investigated by the United States Postal Inspection Service.

Assistant United States Attorneys Mary Kruger and John Ghose are prosecuting this case.

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

ATLANTA - Darrell Mathis has been sentenced to five years in federal prison for possessing a firearm during a drug transaction.

“Mathis abandoned his oath as a deputy sheriff, and chose the life of a drug dealer,” said United States Attorney Sally Quillian Yates. “His decision to violate the law also violated the trust the public places in law enforcement.  Mathis will have the next five years in prison to consider his conduct.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s sentencing of former Deputy Mathis should serve notice that, while noting that the vast majority of those who serve within the criminal justice system are faithful to their oaths, the FBI will make those individuals who do violate their sworn oaths as law enforcement officers a priority for investigation and prosecution.”

According to United States Attorney Yates, the charges and other information presented in court: In April 2013, it came to the attention of the FBI that Darrell Mathis, a deputy sheriff with the Newton County Sheriff’s Office, was distributing marijuana.  From May through September 2013, Mathis sold various quantities of marijuana to a confidential source who was working with the FBI, as well as to an undercover FBI agent.  On at least two occasions, Mathis sold marijuana from his marked patrol vehicle while wearing his Newton County Sheriff’s Office uniform. 

On August 8, 2013, Mathis sold one pound of marijuana to an undercover FBI agent.  Following that sale, Mathis and the undercover FBI agent went to meet with another undercover FBI agent to discuss the sale of additional quantities of marijuana.  Mathis brought his NCSO badge and his firearm to the meeting. Mathis told the undercover agent that he was bringing his firearm to the meeting “just in case.”  During the meeting, Mathis told the second undercover FBI agent, who Mathis believed to be a marijuana and cocaine trafficker, that he was a police officer, pulled out his badge, and stated, “Don't worry, I'm on your side.” Mathis was arrested on September 19, 2013, when he met with the undercover FBI agent while in possession of one pound of marijuana.

Mathis, 41, of Lithonia, Ga., has been sentenced to five years in prison to be followed by two years of supervised release.  Mathis was convicted on the charge on December 6, 2013, after he pleaded guilty.

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

Assistant United States Attorney Jamie L. Mickelson 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 - Jason Cole Votrobek and Roland Rafael Castellanos have been convicted 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.  Votrobek had previously been acquitted in Florida of similar charges stemming from his ownership of a Florida pain clinic.

“The abuse of pain medication has become epidemic and now accounts for more 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 on 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.”

Harry S. Sommers, Special Agent in Charge of the DEA Atlanta Field Division commented on the case, “DEA and its state and local counterparts continue to target pill mills and pain clinics that violate the law by illegally distributing prescription pharmaceuticals. In this case, those charged had an insatiable desire to traffic these dangerous and sometimes deadly substances, but they will not have the power to commit such acts anymore. This case would not have been a success without collaborative law enforcement partnerships.”

“Georgia citizens who served on the federal jury in this case sent a clear message that operating pill mills and the illicit diversion of controlled substances will not be tolerated in our state.  As law enforcement saw the early migration of pill mills to Georgia we quickly began investigating organizations involved in this activity.  The GBI is very pleased a multi-agency effort resulted in the conviction of these individuals,” said Vernon Keenan, Director, Georgia Bureau of Investigation.

Bartow-Cartersville Drug Task Force Commander Captain Mark Mayton said, “This was an important case for our local community as well as the prosecution of future “pill mill” cases. The hard work put into this case by all the agencies involved was apparent by the swift guilty verdict. Prescription diversion is a rapidly growing problem and hopefully this will serve as a strong message to those individuals who choose to exploit other who suffer addiction for their financial gain. We are grateful to the United States Attorney’s Office who believed in our case and support our efforts to keep our community safe.”

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.

The investigation revealed 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.  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.

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.

Jason Votrobek, and Roland Castellanos will be sentenced at a later date.  Jesse Violante and Tara Atkins, who both previously pleaded guilty to charges related to their conduct at the clinic, will also be sentenced at 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, 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 Atlanta Division is http://www.justice.gov/usao/gan/.

ATLANTA – Kevin Hickey, a former church youth director and Director of Parish Outreach for Life Teen International, has been sentenced to ten years in federal prison for distributing child pornography.

“This Defendant was entrusted with counseling and protecting children, but instead collected and distributed highly graphic images portraying their sexual exploitation and abuse” said United States Attorney Yates.  “We will to continue to aggressively prosecute those who pose such a great threat to our children.” 

“HSI puts special emphasis on investigating consumers of child pornography who have access to children through positions of trust,” said Special Agent in Charge Brock D. Nicholson, Homeland Security Investigation (HSI) Atlanta. “My special agents, our law enforcement partners and prosecutors at all levels are engaged in a relentless pursuit of child pornographers. By putting men like Kevin Hickey behind bars, I have no doubt that we are saving innocent children from the trauma of rape and exploitation.”

According to United States Attorney Yates, the criminal indictment, and information presented in court:  Kevin Hickey was identified as an individual with a sexual interest in children and who collected and distributed child pornography.  In June 2013, Hickey, using his online screen name “funguyatl77,” engaged in an online communication, monitored by federal agents, in which he stated that he was watching “perving vids” and offered to share child pornography.  On June 3, 2013, Hickey transmitted a video showing two prepubescent males being sodomized by an adult male.  Hickey further displayed photographs of children he took surreptitiously in public places and was heard gratifying himself sexually during the online conversation.  A subsequent investigation by Homeland Security Investigations agents led them to Hickey and to Hickey’s home, where he maintained his computer and engaged in the collection and distribution of these pornographic images.  Thousands of images of child exploitation have been located on Hickey’s electronic devices.

Hickey, 39, of Atlanta, Ga., was sentenced by United States District Judge Timothy C. Batten, Sr. to ten years in prison to be followed by lifetime supervised release.  He was ordered to pay $1,000 in restitution, and 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 Homeland Security Investigations, Immigration and Customs Enforcement.

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

ATLANTA - William Kimbrell has been arraigned on federal charges of accessing with intent to view child pornography.  Kimbrell was indicted by a federal grand jury on March 18, 2014.

"This now-former middle school teacher has been indicted on child pornography charges," said United States Attorney Sally Quillian Yates. "Through the vigilance of our law enforcement partners, this defendant is no longer teaching, and will face the consequences of his actions."

“Consumers of child pornography create a demand for the sexual exploitation of children that has resulted in an explosion of abuse across the United States,” said Special Agent in Charge Brock D. Nicholson of Homeland Security Investigations (HSI) in Atlanta. “No matter how cleverly a suspect may think he has covered his tracks by deleting or encrypting illegal photos and videos, our special agents and computer forensic analysts are highly trained and skilled at finding the evidence of their crimes.”

According to United States Attorney Yates, the charges, and other information presented in court:  Starting in October 2012, a sheriff's office detective in southern Georgia found that a person at an apartment complex in Statesboro, Ga., was distributing child pornography.  In late December 2012 and continuing into January 2013, this same person was still offering child pornography for distribution, but this time the computer’s Internet protocol address came back to a residence in Covington, Ga. 

When special agents with Homeland Security Investigations learned of the offense this year, they identified the subject as William Kimbrell, and obtained federal search warrants for his home in Covington.  At that time, Kimbrell was working as a middle school teacher in Barrow County, Ga.  When the agents executed the search warrants, they found that Kimbrell had deleted the bulk of the child pornography on his computer.  The computer forensics analyst, however, was able to find remnants of files on the computer and was able to determine that Kimbrell had accessed child pornography on the Internet from October to December 2013, which includes the period that he was working as a teacher.  Kimbrell resigned from his position as a middle school teacher on March 17, 2014.

William Kimbrell, 27, of Covington, Ga., was arraigned before United States Magistrate Judge Russell G. Vineyard.  Members of the public are reminded that the indictment only contains charges.  The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.

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

Assistant United States Attorney Paul R. Jones is prosecuting the case.

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

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

ATLANTA - Brenda Joyce Davidson, Gwendolyn Lockett, Sheryl Monique Taylor, and Keresa Foster, have been arraigned on indictments returned by a federal grand jury on March 12, 2014, charging them with accepting cash bribes in exchange for issuing Georgia car titles.

“These defendants are charged with taking official actions that were motivated by their personal financial gain instead of their duty to serve the citizens of this state with integrity,” said United States Attorney Sally Quillian Yates.  “Thanks to the collaborative efforts of federal and state law enforcement agencies, the defendants are no longer in a position to subvert Georgia’s car titling system for their personal gain.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Public corruption at all levels erodes the public’s trust placed in not only those individuals but also the organization they represent.  The FBI will continue to provide significant investigative resources toward public corruption related matters, noting that it is one of the FBI’s top criminal investigative priorities.”

Staci Guest, Director of the Office of Special Investigations, stated: “The suspect’s indictments show how serious the State of Georgia is at finding individuals who erode public trust and confidence. The Georgia Department of Revenue will continue to work with our federal and local law enforcement officials to combat individuals who commit fraud.”

According to United States Attorney Yates, the charges, and other information presented in court: Davidson, Lockett, Taylor, and Foster were all customer service representatives at the Georgia Department of Revenue’s Motor Vehicle Division, responsible for processing and issuing car titles and registration documents.  In 2012 and 2013, each of the defendants accepted bribes from individuals they believed to be customers in need of car titles.  The individuals were actually FBI agents posing as customers or other individuals working under the direction of the FBI.  Soon after accepting the bribes, each defendant accessed Georgia’s official car titling databases to process, print, and provide the fraudulent car titles.  The defendants would meet with the purported customers outside of normal business hours and at various locations throughout the metropolitan Atlanta area.  During those meetings, the defendants would accept cash bribes, obtain titling paperwork, and provide the fraudulent titles.

At the time the defendants provided the car titles, they knew or suspected that the titling paperwork was incomplete or fraudulent.  On one occasion, a defendant accepted a cash bribe in exchange for processing and printing a car title.  The defendant soon discovered that she could not print the car title because the Department of Revenue changed its title printing policy for individual car owners.  Later, in order to circumvent the Department of Revenue’s title printing restrictions, the defendant accessed Georgia’s car titling database to obtain the name of a defunct car dealer, provided that dealer’s name to the purported customer, and processed fraudulent paperwork containing the dealer’s name despite knowing that the dealer was not involved in the unlawful transaction. 

Brenda Joyce Davidson, 55, Gwendolyn Lockett, 49, Sheryl Monique Taylor, 31, and Keresa Foster, 44, all of the Atlanta, Ga. area, were arraigned before United States Magistrate Judge Linda T. Walker.

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

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

Assistant United States Attorney Nekia S. Hackworth 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 - Larry Pratt has been sentenced in federal court to 17 years in prison to be followed by a five years of supervised release for his part in a robbery crew. 

“By impersonating police and invading houses in residential areas, this robbery crew undermined the public’s trust in real law enforcement officers,” said United States Attorney Sally Quillian Yates. “Citizens must be able to trust that those who look like police are, in fact, really police.  Although it may be tempting to characterize this as merely drug dealer on drug dealer crime; the fact that this robbery crew also used SWAT-like tactics, kidnapped victims, and exchanged gun fire on residential streets to steal drugs and cash demonstrates a lack of respect for people’s lives.  Their arrest and prosecution is an important way to maintain public trust.”

"Individuals who impersonate law enforcement and pursue a criminal path of armed robberies and home invasions threaten the safety of our communities,” said ATF Acting Special Agent in Charge Ray Brown.  “ATF along with our law enforcement partners remain on the frontline of preventing such criminal activities.”

According to United States Attorney Yates, the charges and other information presented in court:  Pratt and the five other men indicted with him by the Fulton County District Attorney’s Office belonged to a robbery crew that targeted suspected drug dealers.  The robbers used tracking devices they secretly put on the victims’ cars to learn their habits and where their intended victims stored drugs and money.  The armed robbers would dress like police, including wearing bullet-proof vests, raid jackets, and hats with the word “POLICE” printed on them.  They would then storm the victims’ houses in a “SWAT”-like tactic – yelling “Police, get down.”  From there, they would tie up and beat the victims until they provided the locations of the drugs and money. 

In one robbery, on the evening of January 14, 2010, Pratt and nine other robbers targeted a residence in DeKalb County, Ga.  Dressed as police, the robbers approached the house just as the victim was walking out the front door.  The robbers rushed the victim, and had him in handcuffs on the front lawn when the victim’s friend drove up.  The robbers shot at the victim’s friend, and a gunfight between the friend and the robbers took place in the front yard.  The robbers then kidnapped the victim in an attempt to get him to tell them where the drugs were located.   The robbers drove the victim around for several hours, all the time keeping him handcuffed in the back of the vehicle.  The victim was certain he would be killed.  The ordeal ended only when the robbers drove the victim to his residence in Conyers, Ga., and his girlfriend recognized that something was wrong and called police. 

Pratt, 40, of Decatur, Ga., was sentenced to 17 years in prison, and five years of supervised release.  Pratt pleaded guilty on November 10, 2011, and his sentencing was delayed until after the trial of his co-defendants. 

Besides this robbery, the crew committed other robberies including ones in Rockdale, Fulton, Bartow and Cobb Counties.  The crew included three men from Baltimore, Maryland, who travelled here for the sole purpose of committing these robberies:  Torrez Seymore, who was sentenced on March 7, 2013, to 13 years, eight months in prison, Kenneth Patterson, who was sentenced on November 8, 2013, to ten years and one month in prison, and Rashaad Wilson, who is scheduled to be sentenced on April 15, 2014.  Two members of the crew are from Atlanta, Ga.; Charles Hutcheson, aka Charlie Boy, who was sentenced July 12, 2013, to 19 years, six months, and Taylor Richardson, who is scheduled to be sentenced on April 15, 2014.  One other member of the crew, Ryan Whitt, of Decatur, Ga., was sentenced on January 6, 2013, to 16 years in prison.          

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

Assistant United States Attorneys Kim S. Dammers and Leslie Abrams 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 sentenced Yafait Tadesse to one year and one day in prison for using the identities of over ten individuals, including the Attorney General of the United States, to file false and fraudulent tax returns.

 “Identity theft affects people from all walks of life, from hardworking taxpayers trying to make ends meet, to senior government officials,” said United States Attorney Sally Quillian Yates.  “Identity thieves should be aware that we will continue to aggressively pursue them no matter who their victims happen to be.”

“Identity thieves have figured out that if they can obtain your Social Security Number they can file false tax returns with the IRS,” said Veronica Hyman-Pillot, IRS Special Agent in Charge IRS Criminal Investigation.  “It does not matter your political position, economic status, or social standing, you are susceptible to identity theft. No one is immune.”

FBI Atlanta, Special Agent in Charge J. Britt Johnson said, “This investigation serves as a warning to those who conspire to devise schemes to defraud and steal money from hard-working citizens through embezzlement and identity theft.  Regardless of whom the victims may be, the FBI takes these violations very seriously and will continue to work with our Federal law enforcement partners in investigating violations of income tax refund fraud.”

According to United States Attorney Yates, the charges, and other information presented in court:  From November 2012 through April 2013, Tadesse and co-defendant Eyaso Abebe carried out a scheme to obtain the names and social security numbers of unsuspecting victims from various websites and use this information on false tax returns that claimed fraudulent refunds.  The tax returns falsely claimed that the victims earned similar wage and withholding amounts and worked at Wal-Mart.  The returns all claimed fraudulent refunds that were to be loaded onto pre-paid debit cards.  These pre-paid debit cards listed Tadesse’s apartment complex in Carrollton, Ga., as the mailing address. 

While the IRS stopped several of the false returns from being fully processed, several fraudulent refunds were directed onto prepaid debit cards.  Surveillance videos showed that Tadesse used one of these prepaid cards at stores in Carrollton, Ga. 

One of the tax returns filed by Tadesse and Abebe used the name, social security number, and date of birth of U.S. Attorney General Eric H. Holder, Jr.  There is no indication that the Attorney General was specifically targeted as a result of his position.  The defendants obtained their victims’ information from publicly available websites that publicize the names, social security numbers, and other personally identifying information of unsuspecting individuals. 

The other individuals targeted in this scheme were not government officials and were located across the United States.  One of the victims wrote in a letter to the sentencing judge that at the time of the offense, his wife was pregnant with the couple’s seventh child and that the defendant’s actions prevented the couple from getting their legitimate tax refund, causing a financial burden to the family. 

Tadesse, 21, of Dekalb County, Ga., was sentenced by United States District Judge Amy Totenberg to one year and one day in federal prison and three years of supervised release, and ordered to pay $4,014 in restitution to the IRS.  The Court also ordered Tadesse to forfeit his interest in computers that were used to carry out this offense.  Tadesse pleaded guilty on November 13, 2013, to theft of government funds.  The co-defendant in this case, Eyaso Abebe, pleaded guilty on October 16, 2013, to theft of government funds and will be sentenced on August 7, 2014. 

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

Assistant United States Attorneys Thomas J. Krepp and Steven D. Grimberg are prosecuting the case.

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

ATLANTA – Bradford Thomas has been sentenced to ten years and one month in prison for using stolen identities of prisoners to file false federal income tax returns that claimed millions of dollars in fraudulent refunds.

“This defendant used the stolen identities of prisoners to steal millions of taxpayer dollars and enrich his own lifestyle,” said United States Attorney Sally Quillian Yates.   “This case exemplifies our continuing efforts to combat identity-theft schemes designed to steal tax dollars, which have grown to disturbing levels.”

“We would like this sentence to serve as a strong message that there are consequences for stealing and using other individual’s personal identifying information,” stated IRS Criminal Investigation, Special Agent in Charge, Veronica F. Hyman-Pillot. “Be assured that we will continue to be proactive in the investigation of individuals who engage in similar behavior.”

According to United States Attorney Yates, the charges, and other information presented in court:  From January 2010 through May 2013, Thomas orchestrated a scheme to file over 1,200 false tax returns using the names and Social Security numbers of various victims, many of whom were incarcerated in jails or prisons throughout the country.  These false tax returns claimed over $5.5 million in fraudulent tax refunds which were directed to be deposited into bank accounts controlled by Thomas or individuals working with him.  The scheme caused an actual loss of over $1.6 million in taxpayer money. 

In conjunction with the arrest of Thomas in August 2013, federal agents searched two locations from which the tax returns were electronically submitted to the IRS, including a business named “Immaculate Autos” at 2691 McCollum Parkway, Suite E, Kennesaw, Ga., and Bradford Thomas's primary residence in Acworth, Ga.  At those locations, investigators uncovered $438,080 in cash, two handguns, jewelry, and various luxury automobiles, including a 2005 Rolls Royce Phantom, a 2008 Maserati Granturismo, a 2005 Bentley 2D, a 2006 Mercedes Benz, a 2003 Hummer H2, a 2007 Mercedes Benz S550, a 2004 Land Rover Range Rover, and a 2002 GMC Denali XL. 

Thomas, 47, of Cobb County, Ga., was sentenced by United States District Judge Steve C. Jones to ten years and one month in federal prison and three years of supervised release, and ordered to pay $1,663,035 in restitution to the IRS.  The Court also ordered Thomas to forfeit his interest in the cash, weapons, jewelry, and luxury automobiles found at his business and residence.  Thomas pleaded guilty on November 22, 2013, to wire fraud and aggravated identity theft.

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

Assistant United States Attorneys Thomas J. Krepp and Mary F. Kruger are prosecuting the case.

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

ATLANTA – Michael Winfield has been sentenced to 25 years in federal prison for using a firearm in the commission of an armed bank robbery.

“Winfield’s persistence in pursuing a life of crime is matched by law enforcement’s commitment to requiring him to face justice for those crimes,” said United States Attorney Sally Quillian Yates.  “The sentence imposed should serve as notice to others that if you choose to participate in violent crimes, you will be subject to severe penalties.”

According to United States Attorney Yates, the charges and other information presented in court: Winfield was identified and arrested by agents from the FBI after they received an anonymous tip and confirmed Winfield’s identity by bank surveillance videos.  The FBI was able to confirm that Winfield had committed three different robberies of two banks and one grocery store.  On February 4, 2013, Winfield robbed a Kroger Grocery Store located in Smyrna Ga.; on February 11, 2013, he robbed a BB&T Bank, located in Alpharetta, Ga.; and on February 19, 2013, Winfield robbed a Wells Fargo Bank, located in Tucker, Ga.  On December 4, 2013, Winfield pleaded guilty to carrying a firearm during the commission of a crime of violence.

Mr. Winfield had previously been convicted in federal court of armed bank robbery and was sentenced to prison.  In 2013, he began to repeat his pattern of committing armed bank robberies.  A second federal conviction of carrying a firearm during the commission of a violent crime carries a 25-year mandatory minimum sentence.  

Based upon the charge to which he pleaded guilty and his criminal history, Winfield, 42, of Atlanta, Ga., was sentenced by U.S. District Court Judge Stephen C. Jones, to a mandatory minimum sentence of 25 years in prison, to be followed by ten years of supervised release, and ordered to pay restitution in the amount of $8,136.00.  Winfield pleaded guilty on December 4, 2013.

This case was investigated by Federal Bureau of Investigation Special Agent Perry Meador.

Assistant United States Attorney Stephanie Smith 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 - Buffy Drake has pleaded guilty to one count of wire fraud by filing false federal tax returns claiming fraudulent refunds in excess of $2.5 million.

“Filing false tax returns is stealing money right from the pockets of millions of honest taxpayers,” said United States Attorney Sally Quillian Yates.  “Dishonest tax return preparers who choose to conduct business this way will be caught and prosecuted.”

“Return preparer fraud is a priority for IRS Criminal Investigation and we have committed many resources to investigating and prosecuting cases just like this,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation.  “This defendant stole from the American taxpayer by filing false tax returns and today she is being held responsible for her actions.”

According to United States Attorney Yates, the charges and other information presented in court: Drake operated a tax preparation business in Griffin, Ga., 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.  

Drake, 43, of Griffin, Ga., has agreed to pay restitution to the IRS in the amount of $2,611,928.  

In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.  Sentencing is scheduled for May 20, 2014, at 10:00 a.m. before United States District Judge Timothy C. Batten Sr.

This case is being investigated by Special Agents of the Internal Revenue Service Criminal Division with the assistance of the City of Griffin Police Department.

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

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

ATLANTA - Rex Anyanwu has been sentenced to federal prison for arranging fraudulent marriages that allowed illegal aliens to remain in the U.S, alien harboring, obtaining his own citizenship in violation of the law, and conspiracy to commit visa fraud.

“Anyanwu abused the same immigration system that allowed him to become a U.S. citizen,” said United States Attorney Sally Quillian Yates.  “His price for defrauding the government is high – not only will he spend a significant amount of time in jail, Anyanwu will also lose his United States citizenship and be deported to his native Nigeria upon completion of his sentence.”

“Providing a legal avenue for the spouses of United States citizens to immigrate to our country is one of the bedrock principles of our immigration system,” said Special Agent in Charge Brock D. Nicholson of Homeland Security Investigations in Atlanta. “The defendant exploited that avenue for his own enrichment. The investigation by HSI, U.S. Citizen and Immigration Services and the Diplomatic Security Service will ensure that he pays for his crimes and loses something even more precious, his citizenship.”

According to United States Attorney Yates, the charges and other information presented in court:  Beginning at least by February 2001 and continuing until his arrest in 2012, Rex Anyanwu ran a fraudulent marriage factory, the product of which was sham marriages designed to deceive immigration.  U.S. citizens testified at trial that “Rex” would drive from the Atlanta area to Huntsville, Ala. and lure them into a marriage with a stranger with the promise of quick, easy money.  One young woman testified that she recruited for Anyanwu, and was paid to find approximately 50 other U.S. citizens willing to engage in sham marriages, primarily to Africans from Kenya and Nigeria.  The U.S. citizens were paid approximately $700 for the marriage; they could earn additional payments of approximately $500 for trips to Atlanta to participate in Citizen and Immigration Services interviews designed to establish that the couple shared their lives and had a valid marriage.  Frequently, the “couple” did not even live in the same state, much less together.  Anyanwu would coach the U.S. citizen and the alien on how to answer the questions to make it appear that the marriage was real.

Some of the alien spouses testified at trial that they came to “Rex” because they heard he could help them stay in the United States.  Anyanwu not only introduced them to the U.S. spouse, but also provided fraudulent documents required by Immigration such as lease agreements, verification of employment, W-2s and 1040 income tax returns.  Anyanwu charged an additional fee for the fraudulent documents.  The aliens further testified that they paid Anyanwu as much as $10,000 and often met their intended spouse the same day and place they were to marry them.  From the number of marriages he arranged, Anyanwu earned at least a million dollars. 

Immigration policy provides that a marriage between a U.S. citizen and a foreign-born spouse who is a citizen of another country is one path through which an alien can become a U.S. citizen.  However, participating in a marriage solely to obtain citizenship is a crime.  Evidence at trial showed that Anyanwu filed fraudulent applications for visas on behalf of the aliens who hired him and would forge U.S. citizen names on the paperwork submitted to Immigration.

One alien witness testified that after Anyanwu was under investigation he contacted her and told her that if anyone asked about him, “Say you don’t know me.”    Another U.S. citizen witness stated that he was scared of Anyanwu, who threatened that if he did not show up for the Immigration interview Anyanwu would have others hurt him.  Anyanwu’s efforts to obstruct the investigation did not succeed, and cost him more time in jail.

Anyanwu, 51, of Lithia Springs, Ga., was found guilty by a jury on November 15, 2013.  He was sentenced by United States District Judge Thomas W. Thrash to five years and ten months in prison to be followed by three years of supervised release, and he was ordered to pay a special assessment in the amount of $6,000.  Anyanwu was also stripped of his U.S. citizenship. 

This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.  United States Citizenship and Immigration Services, Fraud Detection and National Security Unit, and U.S. Department of State, Diplomatic Security Service also assisted in the case.

Assistant United States Attorney Susan Coppedge, Special Assistant United States Attorney Njeri Maldonado and Intern Annalise Lisson prosecuted the case.

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

ATLANTA – Destin Whitmore has been arraigned and detained on charges of extortion, enticement of a minor, and distribution and possession child pornography.  Whitmore was indicted by a federal grand jury on February 19, 2014.  

“This defendant preyed on teenage girls and attempted to extort them to create and send him pornographic images,” said United States Attorney Sally Quillian Yates.  “He threatened to post compromising images of the girls on the internet and to send them to their friends and family.  This is a stark reminder of the need for parents to talk with their children about internet safety.”

Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “This case exemplifies the need to remain vigilant against child predators and others who would exploit the vulnerabilities of minor children over the internet.  The FBI remains uniquely positioned to investigate and bring forward for prosecution those individuals who would exploit and harm our nation’s children and we ask that anyone with information regarding such activity to call their nearest FBI field office.”

According to United States Attorney Yates, the charges, and other information presented in court: In April 2012, a teen girl in Arizona reported that she was contacted using a popular social media website by an individual using a profile name “Ralph Jenkins.”  The individual using the Jenkins profile, later identified as the Defendant, Destin Whitmore, sent the teen compromising images of herself and threatened to send those images to others, including her family members, if she did not immediately create additional images for him.  A subsequent investigation of that profile, along with a profile using the name “Lenny Carlington” showed that both profiles were used by the Defendant, along with his own social media accounts, to transmit pornographic images of numerous teen girls to the girls to extort them for additional images.  If they did not comply with his wishes, he threatened to distribute the pornographic images to others and post them on various websites for public consumption.  Many of the girls Whitmore extorted were known to him through personal relationships or through long term communications using web cameras with the girls online.

The indictment charges Whitmore, 22, of Canton, Ga., with five counts of extortion, one count of enticing a minor to engage in sexual activity, three counts of distribution of child pornography and five counts of possession of child pornography.    

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 Cobb County Police Department and the Federal Bureau of Investigation.

Assistant United States Attorney Jill E. Steinberg is prosecuting the case.

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

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

ATLANTA - Elton Lee Flenaugh and Deje D. Silas have been sentenced to federal prison for credit card fraud and identity theft crimes.

“Identity theft and credit card fraud exacts both a financial and emotional toll on its victims, harming credit histories, bank accounts, and emotional well-being,” said United States Attorney Sally Quillian Yates.  “Undoing the damage can be agonizing for individual victims.  Financial institutions spend untold resources investigating, detecting, and deterring such schemes.  These defendants callously ignored the consequences of their scheme, and will now serve justly deserved terms in federal prison.”

“This case validates the impact of identity theft on innocent victims and our communities. The United States Secret Service will continue to collaborate with its law enforcement partners and prosecutors to ensure those nefarious individuals that commit these crimes are put behind bars,” 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:  Flenaugh and Silas had a romantic relationship dating back several years.  On February 9, 2013, Flenaugh and Silas were scheduled to fly from Atlanta to Los Angeles.  During the pre-flight security screening process in Atlanta, alert TSA security officers noticed a suspicious package in Flenaugh’s carry-on bag and, upon further inspection, found nearly 100 fraudulent credit cards secreted inside a double-sealed manila envelope, which had been hidden inside an empty, foil-lined Lay’s potato chip bag. Thirty-three of the cards were embossed in Silas’ name, 28 were embossed in three different aliases used by Flenaugh, and 21 were blank and had not yet been embossed. Subsequent searches by the Atlanta Police Department revealed fraudulent driver’s licenses inside the protective case attached to Silas’ cell phone and underneath the removable insole of one of Flenaugh’s shoes in the carry-on bag.

Additional investigation revealed fraudulent credit cards, licenses, and stolen credit card account and identity information of hundreds of people. These were found in personal items seized from and during searches of Google e-mail accounts controlled by Flenaugh and Silas, an Apple iPad seized from them at the airport, and a 2007 BMW M6 automobile registered to one of Flenaugh’s aliases.

The investigation showed that the scheme began at least by early 2012 and continued until Flenaugh and Silas’ arrests in February 2013. The scheme involved obtaining credit and debit card account information of hundreds of people, which were then used to manufacture fraudulent credit cards. The cards were made to appear as if they had been issued by major financial institutions such as Chase Bank, U.S. Bank, and Capital One. The defendants also obtained personal identifying information—including Social Security numbers, dates of birth, and credit information—of dozens of people, which were used to create fraudulent driver’s licenses to use with the fraudulent credit cards. The fraudulent credit cards were then embossed with the names used on the fraudulent driver’s licenses. The issuing banks and the names embossed on the fraudulent credit cards were merely a front to make them appear legitimate. The magnetic stripes on those cards were encoded with the actual debit and credit card account information of account holders at dozens of financial institutions throughout the country, but primarily at credit unions located in California, Florida, Georgia, Oregon, and Washington. 

In at least three instances identified to date, Flenaugh and Silas opened fraudulent credit card accounts in one of the stolen identities and made thousands of dollars in unauthorized charges.

Elton Lee Flenaugh, a/k/a Josh Ford, a/k/a Ali Waheed, 34, of Richmond, Calif., was sentenced today to nine years, three months in federal prison, to be followed by four years of supervised release.  Flenaugh was convicted on these charges on December 4, 2013, after he pleaded guilty.  At sentencing, the court held Flenaugh responsible for using the credit and debit card account information and identity information of over 100 different victims to make counterfeit credit cards and driver’s licenses, and for losses between $200,000 and $400,000.

In a separate case, Deje D. Silas, 22, of San Francisco, Calif., was sentenced on August 28, 2013 to three years, 5 months in federal prison, to be followed by three years of supervised release.  Silas was convicted on these charges on May 21, 2013, after she pleaded guilty.        

This case was investigated by the United States Secret Service.  Valuable assistance was provided by the Hartsfield-Jackson Atlanta International Airport division of the Atlanta Police Department, the Office of the Chief Counsel of the Transportation Security Administration, the city of Atlanta Department of Aviation, the Miami-Dade State’s Attorney’s Office, the San Francisco Field Office of the Federal Bureau of Investigation, the Investigations Division of the California Department of Motor Vehicles, and the Oakland Police Department.

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

Anyone who believes they may be the victim of identity theft is strongly encouraged to request and review their credit reports from the three nationwide consumer credit reporting companies; Equifax, Experion, and Trans Union, to be sure everything on the reports are authorized, and that they request a fraud alert from the companies.  It is also suggested that they immediately close any accounts that have been compromised or opened fraudulently.  Those who do online banking or manage other accounts online, check these accounts regularly and be sure passwords are strong.  To report identity theft, contact the Federal Trade Commission at:  http://www.consumer.ftc.gov/articles/0277-create-identity-theft-report or the FTC Identity Theft Hotline at 1-877-438-4338 or TTY 1-866-653-4261.

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 - Kendrick Watkins and Charles Jackson have been indicted by a federal grand jury for conspiracy, armed postal robbery, and discharge of a firearm during a crime of violence, in connection with the robbery and near-fatal shooting of a postal truck driver in Conley, Ga., on December 20, 2013.

“The victim in this case--an on-duty postal employee--was shot, bound, and left for dead,” said United States Attorney Sally Quillian Yates.  “Postal Service employees should not have to work in fear of attack as they carry out their duties.  We will prosecute violent criminals with such little regard for human life.”

“The safety and security of Postal Service employees and customers is core to the mission of the U.S. Postal Inspection Service,” said George Frazier, Assistant U.S. Postal Inspector in Charge of the Atlanta Field Office.  “These types of crimes against postal employees are rare, but when they do occur, they become top priority for us.”

According to United States Attorney Yates, the charges, and other information presented in court:  On December 20, 2013, a postal truck driver conducting a routine mail pick-up in Conley, GA, was approached by two robbers, Kendrick Watkins, 39, of Rex, Ga., and Charles Jackson, 55, of Griffin, Ga.  Jackson and Watkins demanded the keys to the postal truck, and when the victim did not immediately comply, the men shot him in the torso, nearly killing him.  Jackson and Watkins also bound the victim’s feet and took his cell phone so that he could not run or call for help.  They then drove away with the stolen truck and all its contents.  The victim was forced to crawl several hundred feet to the nearest road where he flagged down a passerby for help.

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

This case is being investigated by the United States Postal Inspection Service.

Assistant United States Attorneys Mary Kruger and John Ghose are prosecuting the case.

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

ATLANTA - Herschell Harvell, Jr. made his initial appearance in federal court on charges of making false statements to a bank to obtain a mortgage loan and conspiring to obstruct an investigation into his real estate transactions by the U.S. Department of Housing and Urban Development, Office of Inspector General (HUD-OIG).  Until he was terminated last year, Harvell was the Special Agent in Charge of HUD-OIG’s Atlanta office, which encompasses several southeastern states.  Harvell’s co-defendant and nephew, Tavus A. Wright also made his initial appearance on federal charges of conspiracy, obstruction of justice, and perjury. 

“As a federal law enforcement officer, Harvell was entrusted with supervising mortgage fraud investigations," said United States Attorney Sally Quillian Yates.  “It is particularly troubling that someone responsible for investigating mortgage fraud is charged with committing it and with obstructing justice to cover up his crimes.” 

“It is a regrettable day for the dedicated, hard-working men and women of our organization.  We cannot tolerate or condone the abuse of trust and the violation of the very laws that Mr. Harvell was sworn to investigate and that is why I brought this matter to the attention of the U.S. Attorney,” said David A. Montoya, Inspector General of the Department of Housing and Urban Development.  “I am profoundly disappointed at that break down of our former employee’s ethical and moral compass.” 

According to United States Attorney Yates, the charges, and other information presented in court: Between 2007 and 2012, Harvell served as a supervisory Special Agent in several HUD-OIG offices, including as a Special Agent in Charge in Fort Worth and Atlanta.  Harvell also owned residential homes in the Atlanta area as investment properties.  During 2007 and 2008, he acquired and refinanced several more homes with mortgage loans.  In addition, in January and February 2008, Harvell purchased a Precision Tune automobile care franchise, incurring significant expenses in connection with that purchase.

On March 25, 2008, Harvell refinanced one of his rental homes and received over $23,000 in cash.  Harvell’s loan application represented that he had a $70,000 certificate of deposit and that he received $6,180 in monthly rental income from six residential homes.  The indictment alleges that these representations were false.  It is alleged that Harvell had cashed in the certificate of deposit more than a month before, during the time period that he was purchasing the Precision Tune Franchise.  In addition, it is alleged that Harvell’s houses were not rented or producing the rental income as stated on his loan application.  For example, it is alleged that Harvell in fact received less than $900 in rent in March 2008 and for the year to date, had received less than $6,000 total in rental income.

The indictment alleges that during the course of the HUD-OIG investigation of the accuracy of Harvell’s loan application, Harvell’s nephew, Tavus Wright, provided false information to agents and perjured himself before the grand jury about whether he had signed a document used to demonstrate to Harvell’s lender that one of his houses was rented. 

Harvell, 53, of Conyers, Ga., and Wright, 32, of Milledgeville, Ga., were indicted by a federal grand jury on February 25, 2014.  Harvell and Wright are charged with one count of conspiring to obstruct justice under 18 U.S.C. § 371 and two counts of obstruction of justice under 18 U.S.C. § 1505.  Wright also is charged with three counts of perjury under 18 U.S.C. § 1623.  Harvell also is charged with two counts of making a false statement to a bank under 18 U.S.C. § 1014.

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 Department of Housing and Urban Development, Office of Inspector General, Special Investigations Division, Washington, DC.

Assistant United States Attorney Douglas W. Gilfillan 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/.

ROME, Ga. – Gerald Young and Rodney Strachan, two Florida men who supplied large amounts of the prescription narcotic Oxycodone to pill distributors in northwest Georgia, have been sentenced to prison. 

“The significant sentences imposed reflect our office’s continued commitment to ending the illegal distribution of prescription painkillers in our community,” said United States Attorney Sally Quillian Yates. “The defendants sentenced today supplied a drug trafficking organization with tens of thousands of Oxycodone tablets.  In recent years, the abuse of Oxycodone has risen to epidemic proportions, and fatal overdose rates continue to rise.  We will pursue anyone involved in the illegal acquisition and distribution of pain killers, including unscrupulous doctors, pharmacists, and clinic owners.”

Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division commented on the case, “One of DEA’s top priorities are addressing the problem of the diversion and abuse of controlled pharmaceuticals. These pill peddling perpetrators trafficked scores of Oxycodone pills. Now, they are deserving of the prison term they received. This case was successful because of the unified efforts of our federal, state and local law enforcement partners.”

According to United States Attorney Yates, the charges and other information presented in court:  An investigation by the Drug Enforcement Administration, the Lookout Mountain Judicial Circuit Drug Task Force, and the Catoosa County Sheriff’s Office, revealed that John Gregory Alvarez was the leader of a thirteen-person conspiracy to distribute Oxycodone and launder the proceeds of the illicit sales of the pills.  This drug trafficking organization obtained the vast majority of its pills from Florida.  Specifically, co-defendant 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.

Young and Strachan stockpiled copious amounts of Oxycodone pills, which they would then provide to Alvarez and his co-conspirators on consignment.  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., and Strachan, 58, of Pompano Beach, Fla., were sentenced by United States District Judge Harold L. Murphy.  Young was sentenced to ten years, one month in prison to be followed by three years of supervised release.  Strachan was sentenced to nine years in prison to be followed by three years of supervised release.  Both are 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, on October 21, 2011, Alvarez was sentenced to 21 years, ten months in prison to be followed by six years of supervised release. 

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.

This case was investigated 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.

Assistant United States Attorney C. Brock Brockington prosecuted the case.

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

ROME, Ga. - Brian Cannon and Cory Williamson appeared in federal court today for preliminary and bond hearings on federal charges of conspiring to receive and possess unregistered destructive devices, specifically pipe bombs and thermite devices.  According to a federal complaint filed this week, the defendants sought to obtain the explosive devices as part of a militia operation.

"This case is a stark reminder of the threat we face not just from abroad, but from within our own borders from our own citizens,” said United States Attorney Sally Quillian Yates.  “When plans turn violent, law enforcement must step in to protect our communities from harm. Fortunately, the FBI was able to stop these defendants before they were able to carry out their plans." 

Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI can no longer wait to respond to the aftermath of a radicalized individual's or group's threats. Instead, we have to bring our investigative and analytical assets to bear in getting ahead of those threats and potential attacks and do so within the rule of law. The FBI would like to thank the Bartow-Cartersville Drug Task Force, Floyd County Police Department, Polk County Police Department, Rome Police Department, and the Bartow County Sheriff's Office for their investigative and operational assistance in this matter.”

According to United States Attorney Yates, the charges, and other information presented in court: Between January  23, 2014, and February 15, 2014, Cannon, Williamson, and Terry Eugene Peace, the third defendant,  participated  in  online  chat  discussions  during  which  they  discussed  carrying  out  an operation  against  the  government.  During  on online chat on January  23,  2014,  Peace  spoke  about  a  mission  that  was  to  be launched in February.  Peace encouraged members of the  militia  to  review  guerilla  warfare  tactics,  small  unit  tactics,  accumulate supplies,  and  prepare  their families.  Peace also identified targets such as “…TSA, DHS, non-emergency FEMA, road blocks, etc.”  The discussions were reported to the FBI, and the FBI then began consensually monitoring the communications.

Pursuant to this mission, Peace asked a cooperating witness to provide them with 12 pipe bombs and two thermite grenades.  Peace, Cannon and Williamson subsequently planned to meet with the cooperating witness in order to take possession of the items after the items were made. 

On February 15, 2014, Peace, Cannon and Williamson drove to a location in Cartersville to meet the cooperating witness.  Prior to their arrival, the cooperating witness was provided with 12 inert pipe bombs and 2 inert thermite devices that were constructed to look like real explosives.  The three defendants were arrested as they were taking possession of the devices.

Terry Peace, 45, Brian Cannon, 37, and Cory Williamson, 28, of Rome, Ga., all had initial appearances before Walter E. Johnson, United States Magistrate Judge, on February 18.  Cannon and Williamson were detained at the conclusion of today’s hearing.  All three were charged in a criminal complaint on February 18, 2014.  

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

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

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

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

ATLANTA – Dwayne Penn, formerly a police officer with the Clayton County Police Department assigned to the U.S. Marshals Service Fugitive Task Force, was sentenced today to ten years in prison for conspiring to distribute cocaine.      

“The public rightfully expects police officers to protect them from drug dealers, not go into business with them,” said United States Attorney Sally Quillian Yates.  “The defendant crossed over to become one of the bad guys, and now he will suffer their fate.” 

Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI, as the lead investigative agency and coordinating body for the Atlanta Public Corruption Task Force consisting of numerous local, state, and other federal agencies, regards all public corruption matters, in particular those involving law enforcement officials, to be a priority investigative matter.  As such, the FBI asks that anyone with information regarding such activity to contact their nearest FBI field office.”

Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division commented, “It is always disturbing when someone in a position of trust such as a law enforcement officer tarnishes the badge by violating his or her oath. Law enforcement officers are held to a higher standard and any misconduct that they engage in will not be tolerated. Penn’s actions were deplorable and he is deserving of the sentencing handed down today.”

According to United States Attorney Yates, the charges, and other information presented in court:  In August 2013, Penn, who was employed with the Clayton County Police Department at the time, conspired with Adrian Austin, an Atlanta-based drug dealer, to use Penn’s official position as a police officer to stage a fake traffic stop of a car that he and Austin believed would contain six kilograms of cocaine, conduct a fake arrest of the car’s occupant, seize the cocaine for themselves, and then sell the cocaine, sharing their ill-gotten gains.  Fortunately, the person whom Penn and Austin sought to recruit for this corrupt endeavor was cooperating with federal law enforcement and agreed to record his/her meetings with Penn and Austin. 

In the lead up to the fake arrest and seizure, Penn and Austin met face-to-face with the confidential informant on two separate occasions to plan their operation.  Penn drove his police car to the planning meetings.  While together, Penn, Austin, and the confidential informant discussed the confidential informant obtaining cocaine from his/her drug source of supply.   Penn would then conduct a fake traffic stop and arrest of the confidential informant in front of the source, using Penn’s police vehicle and lights, and seize the cocaine, leading the source to mistakenly believe the drugs had been seized by law enforcement.  They would divide up the seized cocaine among themselves according to the plan.  As part of the charade, Penn agreed to handcuff the confidential informant, put the drugs in the trunk of his police car, and drive the confidential informant to a second location.  During one of the meetings, Penn even drove Austin and the confidential informant around the parking lot, scouting out possible spots for various events the next day.   Penn reassured the confidential informant that they could cover his/her tracks with the source of supply to deflect suspicion.

As planned, on the morning of August 28, 2013, Penn and Austin arrived at the appointed Decatur parking lot.  Penn drove his police car and parked it in view of where the drug deal was to occur.  While waiting, Penn ran the tags of a number of vehicles in the area through law enforcement databases.  Penn also called task force officers with the DeKalb County Police Department and DeKalb County Sheriff’s Office and asked if DeKalb County had any surveillance vehicles that fit the description of vehicles Penn saw in the parking lot that morning.  Penn rebuffed offers of assistance from his fellow officers, claiming he was just doing surveillance.

Before the deal’s consummation, the confidential informant met with Austin in Austin’s car in the parking lot.  Austin relayed information between the confidential informant and Penn over his cellphone.  The confidential informant and Austin discussed the imminent deal, with the confidential informant’s describing where s/he would put the drugs after receiving them.
The confidential informant exited Austin’s car and shortly thereafter met with the supposed drug dealer (also a law enforcement source) in the parking lot in view of Penn.  The confidential informant received a shopping bag containing six kilogram-size bricks of fake cocaine, walked back to his/her vehicle, and placed the bag inside, placing two kilogram bricks in the back seat and leaving the remaining four kilogram bricks in the shopping bag in the front seat. 

After the confidential informant emerged from his/her vehicle, Penn sped over in his police car with the lights on and blocked the confidential informant from leaving.  Penn jumped out of his car with his firearm drawn and pointed it at the confidential informant.  Penn was wearing a bulletproof vest, which read “Police,” and a black baseball hat.  Penn ordered the confidential informant to get on the ground and to keep his/her “hands behind your back,” which the confidential informant did.  Penn holstered his firearm, picked up the confidential informant from the ground, and patted him/her down.  Penn then ushered the confidential informant into Penn’s police car.  The confidential informant told Penn that s/he had already taken his/her two and that there were four in the bag.  Penn walked over to the confidential informant’s vehicle and removed the shopping bag with the four kilogram bricks from the front seat, leaving the confidential informant’s share (two kilograms) in the car.  Penn placed the shopping bag in the trunk of his police car, told the confidential informant to “get out of here,” and drove away with the cocaine-like substance, leaving the confidential informant and the two kilogram bricks behind at the parking lot.

Penn and Austin were arrested shortly afterward in the vicinity of the Decatur parking lot.  Each had a loaded firearm with a round in the chamber.  The shopping bag with substituted cocaine was recovered from Penn’s vehicle.

On August 28, 2013, Penn was terminated from the Clayton County Police Department and the Marshals Service Task Force. 

Penn pleaded guilty to conspiring to distribute over five kilograms of cocaine, pursuant to a negotiated plea agreement, on January 21, 2014.  His codefendant, Adrian Austin, pleaded guilty to the same charge on January 14, 2014.

In addition to the ten-year term of imprisonment, Penn was also sentenced by United States District Judge Amy Totenberg to five years of supervised release, 120 hours of community service following his release from prison, and ordered to pay a $100 special assessment. 

Sentencing for Austin is scheduled for April 10, 2014, at 2:00 p.m. also before United States District Judge Totenberg.

The case is being investigated by Special Agents of the Federal Bureau of Investigation and Drug Enforcement Administration.

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

ATLANTA – Lawrence Eppelbaum has been sentenced to 50 months in prison and fined $3.5 million following his trial conviction on health care fraud, tax fraud and money laundering charges.

“Our Medicare system is premised on the ability of patients to make a choice about their doctor and their treatment without undue interference, and our tax system is based on each taxpayer paying his or her fair share,” said United States Attorney Sally Quillian Yates.  “The defendant cheated both systems by illegally enticing his patients with gifts and then evading paying taxes on the substantial income he earned from treating those patients.  His choice to practice fraud along with medicine has earned him substantial time in federal prison.”

“Those who swindle and deceive the Medicare program should expect to pay dearly for their crimes,” said Derrick L. Jackson, Special Agent in Charge of the Office of the Inspector General for the U.S. Department of Health and Human Services Atlanta Region.  “Having been outsmarted by federal law enforcement, Eppelbaum was aggressively prosecuted and will now do years of hard time.” 

Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s sentencing of Dr. Eppelbaum should serve as a reminder to others considering similar such fraudulent and criminal activities targeting our publicly funded health care programs that federal agencies, including the FBI, are prepared to investigate them and hold them accountable for those criminal actions.”

“In addition to abusing the Medicare system, Eppelbaum committed tax fraud by claiming contributions to charitable organizations that he did not make,” stated Veronica F. Hyman-Pillot, Special Agent in Charge with IRS Criminal Investigation.  “The sentence announced today reinforces the commitment by law enforcement and the United States Attorney’s Office that individuals who steal from the government will be held accountable.”

According to United States Attorney Yates, the charges and other information presented in court: Eppelbaum is a physician who is licensed to practice medicine in Georgia and operates the “Atlanta Institute of Medicine and Rehabilitation” (“AIMR”) and the “Pain Clinic of AIMR” in Atlanta.  In 2004, Eppelbaum created the “Back Pain Fund,” a purported charitable organization that he controlled both directly and indirectly.  Eppelbaum, through the Back Pain Fund, paid for Medicare patients to travel to Atlanta to receive medical treatment from his practice, then travel to Florida to visit a local hot spring for approximately four days, before returning to Atlanta to receive additional treatment. 

Eppelbaum was the primary donor to the Back Pain Fund and paid the vast majority of its operating expenses.  Eppelbaum tried to disguise his financial control over the Back Pain Fund by entering into an arrangement with the Torah Day School, a Jewish Day School in Atlanta, whereby the parents of students attending the Torah Day School were instructed to make their tuition checks payable to the Back Pain Fund instead of to the school, and in turn, Eppelbaum repaid the Torah Day School for the amount of the tuition, plus an additional 25 percent.  Eppelbaum entered into similar arrangements with other organizations, and even caused patients who were treated at his medical practice to make their checks payable to the Back Pain Fund.  Between 2004 and 2009, Eppelbaum treated hundreds of Back Pain Fund patients and received approximately $16 million for their treatment from Medicare.

Eppelbaum also utilized the Back Pain Fund as a vehicle for committing tax fraud.  Between 2006 through 2008, Eppelbaum deducted as charitable donations all the payments he made to the Back Pain Fund, the Torah Day School, and other organizations with which he had a financial arrangement, even though Eppelbaum derived substantial personal income from treating Back Pain Fund patients.  Eppelbaum evaded approximately $1 million in federal income taxes through his scheme.  

Eppelbaum, 54, of Roswell, Georgia, was sentenced by United States District Judge Amy Totenberg.  He was charged with 27 counts of healthcare fraud, tax fraud and money laundering. Following a two-week trial in June 2013, the jury found him guilty of all 27 counts. 

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

Assistant United States Attorneys Steven D. Grimberg and Stephen H. McClain prosecuted the case.

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

ATLANTA – Carl Skow, who attempted to purchase a fourteen year old girl from an undercover federal agent, has been sentenced to ten years in federal prison for enticing a child to engage in illegal sexual activity.

“It is shocking that this defendant would endeavor to buy a young girl, imported from another country, as his personal sex slave,” said United States Attorney Yates.  “Sex trafficking is a horrendous trade.  Those who insist on preying on innocent people this way should expect jail in their future. We commend Homeland Security Investigations for its proactive work in identifying child predators and removing them from our community.” 

“The defendant’s attempt to purchase an underage girl from Guatemala makes plain the fact that human trafficking is indeed a form of modern day slavery,” said Special Agent in Charge Brock D. Nicholson, who oversees Homeland Security Investigations operations in Georgia and the Carolinas. “Protecting children from these malicious predators is a top priority for my agency, and we will continue to work closely with the U.S. Attorney’s Office to identify them and bring them to justice.”

According to United States Attorney Yates, the criminal indictment, and information presented in court:  In June 2011, an undercover federal agent responded to an ad posted by Skow on an online classifieds website in which Skow offered a younger girl money for sex.  Between early June 2011 and July 6, 2011, Skow and the agent communicated several times through electronic mail, by telephone, and in person, regarding Skow’s interest in purchasing a minor female from Guatemala for sexual services.  Skow agreed to pay the agent $2,500 for a year of her services and made a down payment of $1,250 for the minor.  The agent and Skow agreed to meet at Hartsfield-Jackson International Airport on July 6, 2011, where Skow planned to pick up the minor female, and make the final $1,250 payment to the undercover agent.  On that date at the agreed meeting location, Skow was arrested in possession of the final payment.  Also on July 6, 2011, agents executed a search warrant on Skow’s home and found, among other items, a large collection of child pornography on his home computer.   They additionally found posted on a wall a list of rules for the minor female to follow, including the rule that she have sex with Skow whenever he chose.

Skow, 37, of Norcross, Ga., was sentenced today by United States District Judge Charles A. Pannell, Jr. to ten years in prison to be followed by lifetime supervised release.  He was also ordered to pay a $100 special assessment.  The defendant will be required to register as a sex offender when he is released from prison.

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

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

ATLANTA – A federal judge has sentenced Bernando O. Davis to 21 years and seven months in prison for using stolen identities to file false federal income tax returns that claimed millions of dollars in bogus refunds. 

“This lengthy prison sentence reflects the serious damage suffered by more than 15,000 victims across the country at the hands of a prolific identity thief and tax cheat,” said United States Attorney Sally Quillian Yates said.  “Mr. Davis lied to his victims to steal their personal information, which he then used to file over $19 million in phony tax returns, making this one of the largest stolen identity tax return cases prosecuted in this district.  Given the unfortunate popularity of these schemes, the stiff sentences received by these defendants should send a strong message to identity thieves to get out of this business.”

“The IRS is deeply concerned about those individuals who may have been the victims of stolen identity refund fraud,”   stated Veronica Hyman-Pillot, IRS Criminal Investigation Special Agent in Charge. “Identifying, investigating and vigorously prosecuting those individuals involved in these tax related identity theft schemes remains a top priority for IRS Criminal Investigation.”

“A large part of the U.S. Postal Inspection Service’s mission is to ensure public trust in the mail.  When that trust is challenged, Postal Inspectors will aggressively investigate and remain steadfast in its resolve to seek justice against those who would seek illegal profiting from the U.S. mail.” said George Frazier, Assistant U.S. Postal Inspector in Charge, Atlanta Field Office.

According to United States Attorney Yates, the charges and other information presented in court:  From approximately July 2010 to January 2013, Davis operated “Davis Tax Service,” a tax preparation business in Clayton County, Ga.  Davis, working with others, including Kevin J. Sonnier of Ellenwood, Ga., and Carla L. Jefferson of Lancaster, Ca., led thousands of victims to believe that they could apply for “government stimulus payments” or “free government money” from the federal government by providing their names and Social Security numbers.  Davis and his conspirators used toll-free telephone numbers, web sites, flyers, and radio advertisements to advertise the “stimulus payments” and collected victims’ personal information when they applied for the payments.  They also recruited “runners” who promoted the scheme by word of mouth and collected victims’ personal information. 

In addition to the “stimulus” charade, Davis and his co-conspirators acquired names from a variety of sources, including prisons and homeless shelters, to use in the fraud.  Many victims testified that they had never heard about the “stimulus payments,” but their identities were nonetheless used by Davis and his co-conspirators to file bogus tax returns. 

In actuality, no stimulus program existed, and Davis and his co-conspirators instead used the victims’ personal information to file fraudulent tax returns that claimed a total of over $19 million in bogus refunds.  On the returns, Davis claimed false income amounts and student credits to generate the bogus tax refunds.  In many of the returns, Davis directed the IRS to pay the refund amounts to bank accounts controlled by him or his co-conspirators.  The victims did not know that Davis had filed tax returns in their names.  The scheme affected over 15,000 victims in virtually every state across the country.

The evidence at trial showed that Davis had over 1,600 tax refund checks sent to his home address in Stockbridge, Ga., by listing his home address as the victims’ address on the tax returns he filed in their names.  In addition to the checks, Davis received thousands of letters addressed to the victims from the IRS, Social Security Administration, and other government agencies.  After seeing such a large number of Treasury checks coming to Davis’ home address, a mail carrier seized over 1,000 of these checks and provided them to law enforcement. 

Federal agencies executed a search warrant at Davis’ and Sonnier’s business location in February 2013.  There they found numerous lists of names, Social Security numbers, and birth dates of victims which were used to file tax returns.  They also found tax forms with victims’ signatures taped onto the forms to make it look like the victims had authorized the tax returns.  In reality, Davis and his co-conspirators had cut the signatures from the “stimulus” applications and taped them to the tax forms to make their business appear legitimate if anyone asked any questions.  When agents first entered the business to execute the search, Davis fled out of the back of the building and was arrested with the assistance of Clayton County law enforcement. 

Davis also faxed a fraudulent Georgia driver’s license and tax forms to a Texas detective in 2012, when the detective asked questions about a tax return Davis had fraudulently filed in a Texas victim’s name.  Davis falsely represented that the license had been given to him by the taxpayer.  Numerous text messages were also introduced at trial where co-conspirators sent Davis names and Social Security numbers, including from prisoners, for use in the scheme.

Davis, 28, of Stockbridge, Ga., was sentenced by United States District Judge Charles A. Pannell, Jr. to 21 years and seven months in federal prison and three years of supervised release, and ordered to pay $7 million in restitution.  On December 12, 2013, a jury convicted Davis of one count of conspiracy, 15 counts of wire fraud, and 15 counts of aggravated identity theft.  Over 20 victims testified at trial.  Davis was detained after the verdict.

On January 9, 2014, Sonnier, 45, of Ellenwood, Ga. was sentenced to eight years in prison and three years of supervised release, and ordered to pay $7 million in restitution.  The Court also ordered Sonnier to forfeit his interest in 17 separate pieces of real estate located throughout Clayton County, thousands of dollars that were previously seized from his bank accounts, and over 80 electronic devices and items of jewelry that were previously seized by the government.  Sonnier pleaded guilty on May 22, 2013, to conspiracy, wire fraud, and aggravated identity theft.

On November 20, 2013, Jefferson, 48, pleaded guilty to conspiracy for her role in the scheme.  Her sentencing is scheduled for March 19, 2014, before Judge Pannell.

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

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

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

ATLANTA – Annamalai Annamalai, a/k/a Dr. Commander Selvam, a/k/a Swamiji Sri Selvam Siddhar, the former leader of the now defunct Hindu Temple of Georgia, has been charged in a superseding indictment with 32 counts of fraud and obstruction-related charges.

“This defendant is charged with using his position in the temple to promote his fraud schemes,” said United States Attorney Sally Quillian Yates.  “We urge anyone who believes they may have been defrauded by this defendant to notify law enforcement.”

"Annamalai exploited his position as a leader and spiritual adviser to enrich himself, by fleecing the people who trusted him with their most personal information," stated IRS Criminal Investigation, Special Agent in Charge, Veronica F. Hyman-Pillot.  "IRS Criminal Investigation has 'followed the money trail' to ensure that these actions do not go unpunished."

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

For example, in some instances Annamalai delivered a free magazine to the followers through the United States mail with a certified mail receipt.  The followers had not requested the free magazine, but it is alleged that Annamalai later submitted the signed certified mail receipt to the followers’ credit card companies in a false attempt to demonstrate that the followers had agreed to the disputed charges.  The superseding indictment charges Annamalai with seven counts of bank fraud for causing false documents to be submitted to his followers’ credit card companies.  The superseding indictment further alleges that the income generated by the Hindu Temple through these credit card charges was used to fund the personal lifestyle of Annamalai and his family, who owned or controlled numerous homes and real properties, luxury vehicles, and foreign bank accounts in India.

The superseding indictment also charges Annamalai with willfully filing a false tax return for the 2007 year, for failing to disclose his financial interest in foreign bank accounts held in India.

Annamalai, 48, of Baytown, Texas, and a co-defendant are also charged with one count of conspiring to commit bankruptcy fraud and 10 counts of bankruptcy fraud, in connection with the Hindu Temple’s petition for bankruptcy protection in August 2009.  It is alleged that Annamalai and his co-defendant concealed assets from creditors and others by diverting credit card receipts and donations intended for the Hindu Temple to bank accounts in the name of a different entity.  Annamalai is also charged with 10 counts of money laundering for allegedly using proceeds from the bankruptcy fraud to pay mortgages on properties that he owned, and payments to himself.

Finally, Annamalai is charged with three counts of obstruction or false statements in connection with the grand jury investigation and the bankruptcy proceeding.  It is alleged that Annamalai transmitted a fraudulent email to an IRS Special Agent, which was falsely made to appear as if the email had been written and authored by a witness of the criminal investigation.  The superseding indictment also alleges that Annamalai submitted a false affidavit to the grand jury, and a false affidavit to the Bankruptcy Court in connection with the Hindu Temple’s bankruptcy proceeding.  Annamalai was detained following his arrest in November 2013, and remains in custody.

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

This case is being investigated by Special Agents of the Internal Revenue Service Criminal Investigation.  The United States Trustee’s Office provided valuable assistance throughout the investigation.

Individuals who believe they have been the victims of these alleged schemes are encouraged to call 404-338-7533. 

Assistant United States Attorney Steven D. Grimberg is prosecuting the case.

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

ATLANTA - Cathy Thomas has been arraigned in federal court on charges arising out of a scheme to obtain benefits that should have been used for a disabled, mentally incompetent beneficiary. 

“This Defendant was entrusted with the responsibility of making certain that the Social Security benefits were used to care for this defenseless woman who was unable to care for herself, and could not even communicate her name to others" said United States Attorney Sally Quillian Yates.  "Instead, the Defendant stole her money and let her languish in various hospitals where they did not even know her true identity."

“The Office of the Inspector General has no higher priority than the protection of those Social Security beneficiaries least able to defend themselves,” said Thomas Caul, Special Agent in Charge, of the Office of the Inspector General for the Social Security Administration.  “Representative payees are appointed to ensure the well-being of a beneficiary when the beneficiary is unable to administer his or her own affairs, and the violation of that trust will be prosecuted.  We are gratified to see this case brought to a successful conclusion, and appreciative of the U.S. Attorney’s commitment to helping us protect those most in need.”

According to United States Attorney Yates, the indictment, and other information presented in court:  In August 2010, an unidentified, mentally incompetent woman was abandoned at an Alabama hospital emergency room.  Because she was unable to communicate she remained unidentified until August 2013, when the Alabama Bureau of Investigation, working in connection with the Georgia Bureau of Investigation, was able to identify her.  The Social Security Administration (SSA) determined that the woman was a Supplemental Security Income (SSI) beneficiary.  They further determined that Cathy Thomas was the woman’s representative payee, and was continuing to receive the woman’s monthly SSI benefits. 

Thomas, 59, of Douglasville, Ga. was arraigned on February 7, 2014, on an indictment that charged her with one count of wire fraud in violation of Title 18 USC Section 1343, three counts of false statements to a federal agency in violation of Title 18 USC Section 1001, and one count of representative payee fraud in violation of Title 42 USC Section 1383a(a)(4). 

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 Social Security Administration, Office of the Inspector General.

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

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

ATLANTA – Jerome Bushay has been sentenced to prison for trafficking more than 185,000 pills of ecstasy (MDMA), methamphetamine, BZP (which is a drug similar to ecstasy), and ketamine.

 “Bushay headed an organization that distributed a staggering amount of drugs in this district,” said United States Attorney Sally Quillian Yates.  “Through his conduct, Bushay earned every day of his prison sentence. Once again, to those enticed by the allures of the drug trade— like money, cars, and clubs – be warned. It’s more likely that you will end up sitting behind bars than you will end up drinking at them.”

Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division stated, "Ecstasy is anything but what its name implies – it offers only addiction, pain, and in some instances, death.” Ketamine, often referred to as “Special K,” and BZP, commonly referred to as “Legal Ecstasy,” are all dangerous and sometimes deadly synthetic drugs.  Operation Rude Beast illustrates how DEA and its local, state and federal partners are committed to removing such dangerous substances from our streets. This defendant will now have plenty of time in prison to think about his unlawful acts.”

According to United States Attorney Yates, the charges and other information presented in court: From late-2009 to late-2010, several state, federal, and international agencies conducted an investigation of an Atlanta drug trafficking organization with ties to a corrupt federal customs officer. The investigation (code named Operation Rude Beast) led to the arrest, indictment, and conviction of more than 15 defendants, including Bushay.

Bushay organized and supplied countless drug transactions – in addition to supervising several lower-level drug traffickers. In total, Bushay distributed over 185,000 pills.  Bushay also used former-Customs and Border Protection Officer Devon Samuels to transport his drug money (Samuels was sentenced to 8 years for his conduct).  For example, on November 12, 2010, Bushay had Samuels smuggle $40,000 in drug money into Atlanta’s Hartsfield-Jackson International Airport.  Inside the airport, Samuels used his badge to bypass airport security, which resulted in the bag not being screened. Thereafter, Samuels gave the bag to Bushay’s associate, who was destined for Texas.

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

Bushay, 35, of Lithonia, Ga., has been sentenced to 15 years in prison to be followed by three years of supervised release.  Bushay pleaded guilty on November 22, 2013.

This case was investigated by the Drug Enforcement Administration; Immigration Customs Enforcement (ICE); ICE - Office of Professional Responsibility; ICE - Office of Inspector General; ICE - Homeland Security Investigations; Jamaican Constabulary Force - Anti-Corruption Branch; DeKalb County Police Department; Internal Revenue Service - Criminal Investigation; Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Delta Airlines Corporate Security.

Assistant United States Attorneys Jeffrey W. Davis, Dahil Goss, and L. Skye Davis 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 - Quentin Booker who participated in five robberies of armored car couriers in the Metro Atlanta area, pleaded guilty today to the charges of aiding and abetting the armed robberies, and aiding and abetting the carrying and use of a firearm during the commission of those crimes of violence. 

“These violent robberies terrorized the community,” said United States Attorney Sally Quillian Yates. “This is not the Wild West where robbers ride off into glory after a heist.  This is reality.  Violent criminals like these will be caught, and prosecuted, even the lookouts.”

Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s guilty plea brings some degree of closure to those many local, state and federal investigators and prosecutors who worked many long hours on this matter but the victims left in the wake of this violent robbery crew will live the rest of their lives with the scars inflicted by these robbers.  The FBI will continue to work with its various law enforcement partners in ensuring that our streets are rid of such callous criminals.”

According to United States Attorney Yates, the charges and other information presented in court: The defendant, Quentin Booker, was part of a group who 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.  Altogether, members of this crew were responsible for six robberies in which over $470,000 in cash was taken. 

The evidence established that Booker specifically acted as a lookout during five 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.  This courier was shot and seriously injured during the robbery.

In addition to these robberies, members of this robbery group, Stacey Dooley and Ashley Henderson, along with Ronnie Little committed a sixth armed robbery on March 15, 2011, outside the Kroger’s Grocery Store located on LaVista Road in DeKalb County, Ga.  During the commission of that robbery, Garda Cash Logistics courier Gary Castillo was fatally shot after making a cash pick-up of $11,000. 

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

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

• Ashley Henderson, 29, of Snellville, Ga., pleaded guilty to six counts of Hobbs Act Robbery, two counts of carrying and using a firearm during the commission of a violent crime, and one count of causing the death of another through the use of a firearm.

• Stacey Dooley, 37, of Snellville, Ga., pleaded guilty to six counts of Hobbs Act robbery, one count of carrying and using a firearm during the commission of a violent crime, and one count of causing the death of another through the use of a firearm.

• 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.

• 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.  

           
Booker’s sentencing is scheduled for May 19, 2014, before United States District Judge Thomas W. Thrash.

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 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 Atlanta Division is http://www.justice.gov/usao/gan/.

ATLANTA - A federal district court jury found Donald R. LaFond and Jason Robert Widdison guilty of second-degree murder.  LaFond and Widdison are both federal prison inmates.

“This verdict shows that, even within the federal prison system, violent offenders must be prosecuted to the fullest extent of the law,” said United States Attorney Sally Quillian Yates. “The fact that this particular homicide was motivated by racial animus makes these defendants’ actions all the more reprehensible.  The Department of Justice and its Bureau of Prisons endeavor to protect the life and safety of every federal inmate.  We remain vigilant and will do everything we can to ensure that prisons are as safe as possible for every inmate and employee.”

Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: "The FBI, with assistance from the U.S. Bureau of Prisons, Special Investigations Section, was determined to bring these two violent inmates forward and hold them accountable for the murder of a fellow inmate with the firm understanding that within the federal prison system, the rule of law still applies."

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.  A correction officer 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, Donald R. LaFond, Jr., 53, of New Bedford, Mass., and Jason Robert Widdison, 35, of Morgan, Utah expressed anger towards the victim because the victim refused to protest the fact that he had a black 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.

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

Assistant United States Attorneys Nekia S. Hackworth and Brent Alan Gray 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 – Aleksandr Andreevich Panin, a Russian national also known as “Gribodemon” and “Harderman,” has pleaded guilty to conspiracy to commit wire and bank fraud for his role as the primary developer and distributor of the malicious software known as “SpyEye,” which, according to industry estimates, has infected over 1.4 million computers in the United States and abroad.   

“As several recent and widely reported data breaches have shown, cyber-attacks pose a critical threat to our nation’s economic security,” said United States Attorney Sally Quillian Yates. “Today’s plea is a great leap forward in our campaign against those attacks.  Panin was the architect of a pernicious malware known as ‘SpyEye’ that infected computers worldwide.  He commercialized the wholesale theft of financial and personal information.  And now he is being held to account for his actions.  Cyber criminals be forewarned: you cannot hide in the shadows of the Internet.  We will find you and bring you to justice.”

“Given the recent revelations of massive thefts of financial information from large retail stores across the country, Americans do not need to be reminded how devastating it is when cyber criminals surreptitiously install malicious codes on computer networks and then siphon away private information from unsuspecting consumers,” said Acting Assistant Attorney General Mythili Raman.  “Today, thanks to the tireless work of prosecutors and law enforcement agents, Aleksandr Panin has admitted to his orchestration of this criminal scheme to use ‘SpyEye’ to invade the privacy of Americans by infecting their computers through a dangerous botnet.  As this prosecution shows, cyber criminals – even when they sit on the other side of the world and attempt to hide behind online aliases – are never outside the reach of U.S. law enforcement.”

Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “This investigation highlights the importance of the FBI’s focus on the top echelon of cyber criminals.  The apprehension of Mr. Panin means that one of the world’s top developers of malicious software is no longer in a position to create computer programs that can victimize people around the world.   Botnets such as SpyEye represent one of the most dangerous types of malicious software on the Internet today, which can steal people’s identities and money from their bank accounts without their knowledge.  The FBI will continue working with partners domestically and internationally to combat cyber-crime."

According to United States Attorney Yates, the charges, and other information presented in court:  SpyEye is a sophisticated malicious computer code that is designed to automate the theft of confidential personal and financial information, such as online banking credentials, credit card information, usernames, passwords, PINs, and other personally identifying information.  The SpyEye virus facilitates this theft of information by secretly infecting victims’ computers, enabling cybercriminals to remotely control the infected computers through command and control (“C2”) servers.  Once a computer is infected and under their control, cybercriminals can remotely access the infected computers, without authorization, and steal victims’ personal and financial information through a variety of techniques, including “web injects,” “keystroke loggers,” and “credit card grabbers.”  The victims’ stolen personal and financial data is then surreptitiously transmitted to the C2 servers, where it is used to steal money from the victims’ financial accounts.

Panin was the primary developer and distributor of the SpyEye virus.  Operating from Russia from 2009 to 2011, Panin conspired with others, including codefendant Hamza Bendelladj, an Algerian national also known as “Bx1,” to develop, market, and sell various versions of the SpyEye virus and component parts on the Internet.  Panin allowed cybercriminals to customize their purchases to include tailor-made methods of obtaining victims’ personal and financial information, as well as marketed versions that targeted information about specific financial institutions including banks and credit card companies.  Panin advertised the SpyEye virus on online, invite-only criminal forums.  He sold versions of the SpyEye virus for prices ranging from $1,000 to $8,500.  Panin is believed to have sold the SpyEye virus to at least 150 “clients,” who, in turn, used them to set up their own C2 servers.  One of Panin’s clients, “Soldier,” is reported to have made over $3.2 million in a six-month period using the SpyEye virus. 

According to industry estimates, the SpyEye virus has infected over 1.4 million computers in the United States and abroad and it was the preeminent malware toolkit used from approximately 2009 to 2011. Based on information received from the financial services industry, over 10,000 bank accounts have been compromised by SpyEye infections in 2013 alone.  Some cyber criminals continue to use SpyEye today, although its effectiveness has been limited since software makers have added SpyEye to malicious software removal programs.

In February 2011, pursuant to a federal search warrant, the FBI searched and seized a SpyEye C2 server allegedly operated by Bendelladj in the Northern District of Georgia.  That C2 server controlled over 200 computers infected with the SpyEye virus and contained information from numerous financial institutions.

In June and July 2011, FBI covert sources communicated directly with Panin, who was using his online nicknames “Gribodemon” and “Harderman,” about the SpyEye virus.  FBI sources then purchased a version of SpyEye from Panin that contained features designed to steal confidential financial information, initiate fraudulent online banking transactions, install keystroke loggers, and initiate distributed denial of service (DDoS) attacks from computers infected with the SpyEye malware. 

On December 20, 2011, a Northern District of Georgia grand jury returned a 23-count indictment against Panin, who had yet to be fully identified, and Bendelladj.  The indictment charged one count of conspiracy to commit wire and bank fraud, ten counts of wire fraud, one count of conspiracy to commit computer fraud, and 11 counts of computer fraud. A superseding indictment was subsequently returned identifying Panin by his true name. 

Bendelladj was apprehended at Suvarnabhumi Airport in Bangkok, Thailand, on January 5, 2013, while he was in transit from Malaysia to Algeria.  Bendelladj was extradited from Thailand to the United States on May 2, 2013.  His charges are currently pending in the Northern District of Georgia.
Panin was arrested by U.S. authorities on July 1, 2013, when he flew through Hartsfield-Jackson Atlanta International Airport.

The investigation also has led to the arrests by international authorities of four of Panin’s SpyEye clients and associates in the United Kingdom and Bulgaria. 

On January 28, 2014, Panin pleaded guilty to conspiring to commit wire and bank fraud.  Sentencing for Panin is scheduled for April 29, 2014 before United States District Judge Amy Totenberg. 

The case is being investigated by Special Agents of the Federal Bureau of Investigation.
Assistant United States Attorney Scott Ferber of the Northern District of Georgia, Trial Attorney Ethan Arenson of the Criminal Division’s Computer Crime and Intellectual Property Section and Senior Litigation Counsel Carol Sipperly of the Criminal Division’s Fraud Section are prosecuting the case.  Former Assistant United States Attorney Nicholas Oldham also participated in the prosecution while with the Criminal Division. 

Valuable assistance was provided by the Criminal Division’s Office of International Affairs and the following international law enforcement agencies:  The United Kingdom’s National Crime Agency, the Royal Thai Police-Immigration Bureau, the National Police of the Netherlands - National High Tech Crime Unit (NHTCU), Dominican Republic’s Departamento Nacional de Investigaciones (DNI), the Cybercrime Department at the State Agency for National Security-Bulgaria, and the Australian Federal Police (AFP). 

Valuable assistance also was provided by the following private sector partners: Trend Micro’s Forward-looking Threat Research (FTR) Team, Microsoft’s Digital Crimes Unit, Mandiant, Dell SecureWorks, Trusteer, and the Norwegian Security Research Team known as “Underworld.no”. 

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

ATLANTA - Roberta L. Allen has been sentenced for filing false tax returns that claimed over $600,000 in fraudulent refunds.

"The millions of honest, hard-working taxpayers who prepare and file their tax returns should be assured that those who evade their civic duty or try to 'game the system' will be investigated by the IRS and, where appropriate, criminally prosecuted," said United States Attorney Sally Quillian Yates.

“IRS does not endorse or recommend tax preparers but we do offer guidelines to help the public choose a reliable tax professional,” stated IRS Criminal Investigation, Special Agent in Charge, Veronica F. Hyman-Pillot, “these guidelines are available on the IRS website (irs.gov). Taxpayers should choose carefully when hiring a tax preparer. As the old saying goes, ‘If it sounds too good to be true, it probably is’.”

According to United States Attorney Yates, the charges and other information presented in court:  Allen prepared fraudulent federal income tax returns at a tax preparation business named Refund Now Tax Services from 2009 through 2010.  On the tax returns, Allen claimed fictitious capital losses and taxes paid which resulted in her clients receiving fraudulent tax credits.  Allen also charged her clients exorbitant fees for preparing the returns. In total, Allen's preparation of false income tax returns resulted in over $600,000 in tax losses to the Department of the Treasury.

Allen, 49, of Lawrenceville, Ga., was sentenced to two years, nine months in prison to be followed by one year of supervised release, 100 hours of community service, and ordered to pay restitution in the amount of $641,421.  Allen was convicted on these charges on October 8, 2013 after she pleaded guilty.

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

Assistant United States Attorney Bernita B. Malloy 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 – Dwayne Penn, formerly a police officer with the Clayton County Police Department assigned to the U.S. Marshals Service Fugitive Task Force, has pleaded guilty to conspiring to distribute over five kilograms of cocaine.      

“This Office is committed to protecting the public’s trust in law enforcement,” said United States Attorney Sally Quillian Yates.  “Penn was a drug dealer with a badge.  He used his official position to traffic drugs and now faces a significant sentence for his betrayal of trust.”

Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s guilty plea brings to an end one man’s law enforcement career while providing an opportunity for those many others working within the criminal justice system to re-examine their own oaths and re-dedicate themselves to those oaths.  The FBI will continue to make public corruption matters, in particular those involving law enforcement officers, a priority investigative matter.”

Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division stated, “This case is a reminder that law enforcement officers are held to a higher standard and are not above the law.  This officer is not representative of the honest and hard-working men and women in law enforcement who do not violate their oaths, but faithfully protect and serve the public daily.”

According to United States Attorney Yates, the charges, and other information presented in court:  In August 2013, Penn, who was employed with the Clayton County Police Department at the time, conspired with Adrian Austin, an Atlanta-based drug dealer, to use Penn’s official position as a police officer to stage a fake traffic stop of a car that he and Austin believed would contain six kilograms of cocaine, conduct a fake arrest of the car’s occupant, seize the cocaine for themselves, and then sell the cocaine, sharing their ill-gotten gains.  Fortunately, the person whom Penn and Austin sought to recruit for this corrupt endeavor was cooperating with federal law enforcement and agreed to record his/her meetings with Penn and Austin. 

In the lead up to the fake arrest and seizure, Penn and Austin met face-to-face with the confidential informant on two separate occasions to plan their operation.  Penn drove his police car to the planning meetings.  While together, Penn, Austin, and the confidential informant discussed the confidential informant obtaining cocaine from his/her drug source of supply.   Penn would then conduct a fake traffic stop and arrest of the confidential informant in front of the source, using Penn’s police vehicle and lights, and seize the cocaine, leading the source to mistakenly believe the drugs had been seized by law enforcement.  They would divide up the seized cocaine among themselves according to the plan.  As part of the charade, Penn agreed to handcuff the confidential informant, put the drugs in the trunk of his police car, and drive the confidential informant to a second location.  During one of the meetings, Penn even drove Austin and the confidential informant around the parking lot, scouting out possible spots for various events the next day.   Penn reassured the confidential informant that they could cover his/her tracks with the source of supply to deflect suspicion.

As planned, on the morning of August 28, 2013, Penn and Austin arrived at the appointed Decatur parking lot.  Penn drove his police car and parked it in view of where the drug deal was to occur.  While waiting, Penn ran the tags of a number of vehicles in the area through law enforcement databases.  Penn also called task force officers with the DeKalb County Police Department and DeKalb County Sheriff’s Office and asked if DeKalb County had any surveillance vehicles that fit the description of vehicles Penn saw in the parking lot that morning.  Penn rebuffed offers of assistance from his fellow officers, claiming he was just doing surveillance.

Before the deal’s consummation, the confidential informant met with Austin in Austin’s car in the parking lot.  Austin relayed information between the confidential informant and Penn over his cellphone.  The confidential informant and Austin discussed the imminent deal, with the confidential informant’s describing where s/he would put the drugs after receiving them.

The confidential informant exited Austin’s car and shortly thereafter met with the supposed drug dealer (also a law enforcement source) in the parking lot in view of Penn.  The confidential informant received a shopping bag containing six kilogram-size bricks of fake cocaine, walked back to his/her vehicle, and placed the bag inside, placing two kilogram bricks in the back seat and leaving the remaining four kilogram bricks in the shopping bag in the front seat. 

After the confidential informant emerged from his/her vehicle, Penn sped over in his police car with the lights on and blocked the confidential informant from leaving.  Penn jumped out of his car with his firearm drawn and pointed it at the confidential informant.  Penn was wearing a bulletproof vest, which read “Police,” and a black baseball hat.  Penn ordered the confidential informant to get on the ground and to keep his/her “hands behind your back,” which the confidential informant did.  Penn holstered his firearm, picked up the confidential informant from the ground, and patted him/her down.  Penn then ushered the confidential informant into Penn’s police car.  The confidential informant told Penn that s/he had already taken his/her two and that there were four in the bag.  Penn walked over to the confidential informant’s vehicle and removed the shopping bag with the four kilogram bricks from the front seat, leaving the confidential informant’s share (two kilograms) in the car.  Penn placed the shopping bag in the trunk of his police car, told the confidential informant to “get out of here,” and drove away with the cocaine-like substance, leaving the confidential informant and the two kilogram bricks behind at the parking lot.

Penn and Austin were arrested shortly afterward in the vicinity of the Decatur parking lot.  Each had a loaded firearm with a round in the chamber.  The shopping bag with substituted cocaine was recovered from Penn’s vehicle.

On August 28, 2013, Penn was terminated from the Clayton County Police Department and the Marshals Service Task Force.  His codefendant, Adrian Austin, pleaded guilty to the same charge on January 14, 2014.

Pursuant to the negotiated plea agreements into which Penn and Austin entered, they each have agreed to a binding ten-year term of imprisonment, to be followed by five years of supervised release.

Sentencing for Penn is scheduled for February 21, 2014, at 2:00 p.m., before United States District Judge Amy Totenberg.  Sentencing for Austin is scheduled for April 10, 2014, at 2:00 p.m. also before United States District Judge Totenberg.

The case is being investigated by Special Agents of the Federal Bureau of Investigation and Drug Enforcement Administration.

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

ATLANTA – Raytosha Elliott, a former contracting official with the Georgia Department of Defense, has been indicted for allegedly awarding contracts in exchange for illegal kickbacks.   

“Ms. Elliott took advantage of the trust her job afforded her to award no-bid contracts by giving them to her friends,” said United States Attorney Sally Quillian Yates.  “The defendants pocketed nearly $75,000 from their scheme for work that was never completed, and denied services meant to maintain facilities supporting those who serve this country.”

Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: "This case is a direct result of government personnel detecting criminal financial irregularities and reporting them to the proper authorities. The FBI will continue to dedicate significant investigative resources to ensure that federal money is spent appropriately and as intended."

Special Agent in Charge John F. Khin, Southeast Field Office, Defense Criminal Investigative Service, said, "In partnership with other law enforcement agencies, the Defense Criminal Investigative Service aggressively pursues all allegations of fraud and corruption impacting the Department of Defense and our warfighting mission, to ensure that American taxpayer dollars are not wasted or stolen.”

“The prosecution of individuals who manipulate normal business transactions in an effort to enrich themselves has always been a priority of IRS and our law enforcement partners”, stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation.  “We are proud to have contributed our financial expertise in order to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice.”

“This case is an excellent example of federal and state law enforcement working together to fight corruption,” said Vernon M. Keenan, Director of the Georgia Bureau of Investigation.

Interim Inspector General Deb Wallace of the State of Georgia Office of Inspector General said, “Our office is dedicated to strengthening the trust between the citizens of Georgia and their public officials by continuously pursuing fraud, waste, abuse and corruption within the executive branch of state government. We would like to thank and recognize the Georgia Department of Defense for its vigilance and willingness to report irregularities within its contracting process. We appreciate the many investigative agencies who assisted on this case through countless hours of hard work to bring it to resolution.”

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

In that position, Elliott awarded numerous contracts under $5,000 to vendor companies created by her friends and associates, including co-defendant Lakeysha Ellis.  In return, the friends and associates paid Elliott kickbacks, equal to 50% of the value of the contracts, for steering the contracts to them.  Elliott falsely certified that work had been completed when, in fact, it had not been in order to facilitate payment.  One of the vendor companies was Total Source Solution, LLC, owned by co-defendant Ellis.  Elliott awarded Total Source Solution 17 contracts with a total value of approximately $75,000.  Those contracts were for a variety of services supposedly to be performed by Total Source Solution, including electrical work, landscaping, and HVAC work.  But the work was never done.  Instead, the defendants split the money awarded under these contracts and spent it on personal items, including travel, meals, merchandise, and even liposuction treatment for Ellis.  As part of the scheme, Elliott owned a company named Tech Group Investments, LLC.  Ellis took money she had obtained from the Georgia Department of Defense contracts, and paid kickbacks to Elliott through this company.

The indictment also alleges that Ellis and Elliott conducted a similar fraud scheme from January 2009, through May 2011, when Ellis was an accountant at Baumueller-Nuermont Corporation, an industrial equipment company with offices in Atlanta.  Her job responsibilities included payroll and paying vendors.

While employed as Baumueller-Nuermont’s accountant, Ellis fraudulently funneled money to the defendants’ two sham companies, Total Source Solution and Tech Group Investments.  Ellis wrote corporate checks to Total Source Solution, signed her name on the checks, and forged the signature of the Vice President on the checks, to ensure that the checks could be negotiated.  Ellis recorded these payments in the check registry to reflect falsely that the checks had been issued to true vendors (such as American Express) when in fact they went to Ellis’ company.

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

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

The ten count indictment charges Elliott, 33, and Ellis, 36, both of Atlanta, Ga., with two counts of conspiracy and seven counts of wire fraud.  Elliott is also charged with accepting a bribe or kickback as a public official.

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

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

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

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

ATLANTA - Rasondo Maurice Norris, who attempted to smuggle cocaine and a Mac-11 machine gun onto a commercial flight has been sentenced to ten years in prison. 

“Security screening at our airports is vital to keeping citizens safe,” said United States Attorney Sally Quillian Yates.  “By using his credentials to bypass security with backpacks of contraband, the defendant tried to allow drugs and a machine gun onboard a commercial flight.  Public safety is a responsibility we take seriously, and our office will continue to prosecute those who are endangering our citizens.”

“The defendant abused his position to enrich himself without any regard for the harm that could have resulted from his actions,” said Brock D. Nicholson, special agent in charge of HSI Atlanta. “HSI special agents will continue to work closely with our partners at Hartsfield-Jackson to ensure the safety of the traveling public.”

“As an integral part of the David G. Wilhelm OCDETF Strike Force, IRS Criminal Investigation is proud to have worked with our Strike Force partners to pursue this individual who disregarded the public trust for his own financial benefit.” stated Special Agent in Charge, Veronica F. Hyman-Pillot. “IRS Criminal Investigation not only enforces the nation's tax laws, but we also take particular interest in cases where the public is at risk due to unlawful activity.”

According to United States Attorney Yates, the charges, and other information presented in court:  Norris, 30, of Stone Mountain, Ga., worked as a baggage handler for AirTran Airlines at the Hartsfield Jackson International Airport.  In May 2013, HSI Special Agents learned that, for a fee, Norris would help people engaged in criminal activity bring contraband onto airplanes by using his security clearance to bypass TSA security. 

On or about May 23, 2013, an HSI Special Agent, acting in an undercover capacity, gave the defendant a backpack containing what was represented to be five kilograms of cocaine.  Norris took the backpack from the undercover agent, bypassed security, and returned the backpack back to the agent once the agent cleared security.  In a similar manner, on May 30, 2013, Norris again bypassed security with a backpack, this time containing what was represented to be $500,000 in drug proceeds.  Finally, on June 5, 2013, Norris once more bypassed security with a backpack carrying what was represented to be three kilograms of cocaine, and a Mac 11 automatic firearm (which had been previously rendered inert by law enforcement agents), a magazine and a silencer.  Norris was paid between $600 and $800 each time he bypassed security with the contraband.

Norris admitted in court that he violated the Hartsfield-Jackson International Airport’s security measures by bringing the Mac-11 machine gun, silencer, and magazine past the TSA security checkpoints and that he attempted to possess five kilograms of cocaine in the airport. 

Norris was sentenced by United States District Judge Steven C. Jones to ten years in prison.  Norris was convicted on October 10, 2013, after he pleaded guilty.  

The agents who investigated this case are assigned to the David G. Wilhelm OCDETF Strike Force and are employed by the following law enforcement agencies: the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; Internal Revenue Service Criminal Investigation; and the Drug Enforcement Administration.

Assistant United States Attorney Kamal Ghali prosecuted the case.

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

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

ATLANTA - Cora Cadia Ford has been sentenced for filing false federal tax returns for refund using stolen identities, including those of homeless and disabled persons.

“Stealing someone's identity for personal gain is bad enough, but this defendant targeted some of the most vulnerable people in our community -- the homeless and disabled,” said United States Attorney Sally Quillian Yates.  “Her crimes left people who were already disadvantaged to deal with yet another obstacle in their lives.  The defendant’s significant sentence today will hopefully bring some solace to those who suffered from her greed.”

“Cora Ford thought she had figured out a clever scheme using the identities of people who were homeless, mentally challenged, and physically disabled to steal and defraud the American taxpayers,” stated IRS Criminal Investigation, Special Agent in Charge, Veronica F.  Hyman-Pillot. “Today's sentence clearly demonstrates that taking advantage, manipulating, and stealing from the American people will not be ignored or go unpunished.”

According to United States Attorney Yates, the charges and other information presented in court:  From approximately January 2007 to May 2011, Ford prepared and filed false tax returns with the IRS, using the names and social security numbers of the poor, homeless and disabled.  Ford intentionally prepared each tax return with false information so that it would generate a tax refund.  Ford obtained the tax refund checks and deposited them into her own bank account or cashed the checks at check-cashing stores, and used the money for her own benefit.  As a result of Ford’s crimes, many of the victims whose names and social security numbers were stolen had their social security disability benefits reduced or eliminated for a period of time. 

Ford obtained the victims’ names and social security numbers in a variety of ways.  Sometimes Ford convinced victims to provide her with their identifying information so that she could apply on their behalf for a homeless grant with the Government.  In fact, no such Government grant existed.  In other instances, Ford, who also ran a small church with her now-deceased husband, told her victims that she would file a tax return on their behalf and it would be “a gift from God.”  Truthfully, Ford used the victims’ identifying information to prepare and file false tax returns, and kept the entire tax refund for herself.  One victim, who testified that her social security disability benefits were reduced to approximately $27 per month as a result of Ford’s crimes, causing her to be unable to afford her own medications, stated that the defendant’s crimes had ruined her life.

Ford, 55, of Stone Mountain, Ga., was sentenced by United States District Judge Thomas W. Thrash, Jr. to nine years, three months in prison to be followed by threeyears of supervised release, and ordered to pay restitution in the amount of $101,015Ford was found guilty by a jury on September 20, 2013, on 30 counts of mail fraud, aggravated identity theft, and filing false claims with the Government.

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

Assistant United States Attorneys Thomas J. Krepp and 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 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 Rothenberg has been sentenced on a charge of wire fraud for defrauding investors and using their money to fund his political campaign for a seat on the DeKalb County Superior Court.

“This defendant committed fraud at the very time that he was asking the voters of DeKalb County to trust him,” said United States Attorney Sally Quillian Yates.  “Now he will spend time in federal prison.”

Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s sentencing of Mr. Rothenberg will not only hold him accountable for his criminal conduct but will provide him with time to contemplate those actions and the harm that he caused others and, ultimately, to himself as well.”

According to United States Attorney Yates, the charges and other information presented in court:  Michael Rothenberg, of DeKalb County, Ga., deceitfully persuaded the owners of WinterHawk Energy and Development Corporation (WinterHawk) into investing a total of $1.35 million.  Rothenberg represented that the invested money would be placed in a trust account, controlled by him, which would be used to fund the trading of notes by large financial institutions.  These notes, according to Rothenberg, would be split into “tranches,” and a ten percent profit would be earned each time a note or “tranch” was traded.  Rothenberg told the investors that the investment involved no risk.

In fact, no investment existed and Rothenberg used the money paid by WinterHawk to fund his political campaign for a seat on the DeKalb County Superior Court as well as to pay personal expenses.  He ultimately was unsuccessful in his bid for a judgeship.  During the scheme, Rothenberg placated the investors’ concerns and lulled them into believing that the investment opportunity was real by emailing them fabricated bank statements, which made it appear as if the money they had invested remained in his trust account and that Rothenberg himself was wealthy.  From time to time Rothenberg returned some of the money to the investors in response to their demands, and claimed falsely that he was making up for the shortfall by personally investing his own money.  But Rothenberg did not invest his own money, and in fact spent the remaining proceeds – approximately $800,000 – without the investors’ knowledge or consent.

Rothenberg, 36, was sentenced today by United States District Judge Steve C. Jones to three years, five months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $800,000.  Rothenberg was convicted on these charges on September 11, 2013, after he pleaded guilty.

This case was investigated by the Federal Bureau of Investigation.

Assistant United States Attorney Steven D. Grimberg prosecuted the case.  The DeKalb County District Attorney’s Office provided valuable assistance.

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/.