Northern District of Georgia

ATLANTA – Jerome Clarence Barnes, Jr. and Jared F. Walker have pleaded guilty for their roles in a scheme to fraudulently issue emissions certificates for cars that would have failed the emissions inspection required by law.   

“Barnes orchestrated a scheme to take hundreds of thousands of dollars in illegal payments in return for falsely certifying that cars had passed emissions tests,” said United States Attorney Sally Quillian Yates.  “By issuing false certificates, not only did Barnes and his codefendants corrupt the emissions certification system, they also allowed a threat to air quality in Atlanta, and as a consequence, public health.”

“Congress enacted the Clean Air Act to ensure that all Americans have the right to breathe clean, safe air and violators who produce fraudulent emissions data undermine that right.” said Maureen O’Mara, Special Agent in Charge of EPA’s criminal enforcement program in Georgia.  “All of the violations in this case took place in the Greater Atlanta area, a region that exceeds minimum federal standards for hazardous air pollutants. This case is an excellent example of how EPA, working with investigators from the Georgia Environmental Protection Division and other agencies, works to protect both the public and the environment.”

“The result of this investigation sends an important message to anyone who would try to defraud Georgia’s vehicle emissions program,” said Judson H. Turner, Director of the Georgia Environmental Protection Division (EPD).  “The program has a major role in the state’s plan to improve air quality in metropolitan Atlanta, so we are very pleased with this outcome.”

According to United States Attorney Yates, the charges and other information presented in court:  Barnes, 34, of Lithia Springs, Ga., was responsible for issuing over 4,000 fraudulent emissions certificates to car owners in Georgia from September 2011 to September 2012, falsely stating that the owners’ cars passed the required emissions test.  Barnes worked with other individuals to open emissions inspection stations in their names that he would then use to issue fraudulent emissions certificates.  Opening stations in others’ names helped conceal Barnes’ involvement in the fraudulent activity.  He wanted to avoid detection because he previously owned two inspection stations that state authorities had shut down for fraud.  When authorities would discover emissions fraud occurring at one of the inspection stations, Barnes continued the fraud at another station that was opened under the name of a different owner.  During the scheme, Barnes used On Time Emissions in Fulton County, All Clean Emissions in Cobb County, BDH Emissions in Dekalb County, Elite Emissions in Fulton County, and Cleaner Atlanta Emissions in Cobb County, to conduct fraudulent emissions testing.  Walker, 35, of Austell, Ga., owned All Clean Emissions.

Jared F. Walker, and co-defendants Ieka N. Jones, 33, of  Winston, Ga., and Seretha Franklin, 36, of Acworth, Ga., were licensed emissions inspectors who worked with Barnes to issue passing emissions certificates to car owners whose cars would have otherwise failed the emissions test.  Instead of connecting the owners’ real cars to the emissions equipment, the defendants connected different cars they knew would pass the test.  During the tests, the computer system automatically transmitted emissions testing data to a statewide database accessible by the Georgia Environmental Protection Division.  The defendants manually entered other information into the system, such as the make, model, and vehicle identification number, to make it appear that they were testing the owners’ real cars, many of which had already failed an emissions test or showed equipment malfunctions.  The defendants charged $100 to $125 for a fraudulent emissions test, far more than the usual amount charged for a legitimate inspection.  Georgia law prohibits inspection stations from charging more than $25 for an emissions test.

Barnes pleaded guilty to one count of conspiring to commit wire fraud by depriving the State of Georgia and its citizens of their right to his honest services as a licensed emissions inspector.  Walker pleaded guilty to one count of violating the Clean Air Act.  The conspiracy charge against Barnes carries a maximum sentence of 5 years in prison.  The Clean Air Act charge against Walker carries a maximum sentence of 2 years in prison.  Each charge carries a fine of up to $250,000.  In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.     

The Clean Air Act is a federal law that authorizes the United States Environmental Protection Agency to establish air quality standards to protect public health and welfare and to regulate emissions of hazardous air pollutants.  As required by the Act, the State of Georgia has established a vehicle emissions testing program that requires cars in several counties be inspected to ensure that their emissions do not exceed limits for hydrocarbons, nitrogen oxide, and other compounds.  With certain exceptions, car owners must submit an emissions certificate to obtain their annual vehicle registration.  The Clean Air Act prohibits making false statements in records, including emissions certificates and database records, that are required to be maintained by the Act.

Sentencing is scheduled for November 22, 2013, at 10:00 a.m. before United States District Judge Timothy C. Batten, Sr.  The indictment charging Jones and Franklin with conspiracy and Clean Air Act violations remains pending.

This case is being investigated by Special Agents of the United States Environmental Protection Agency, Criminal Investigation Division, and the Georgia Department of Natural Resources, Environmental Protection Division.

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

ROME, Ga. - Jason Antti, who traveled to Georgia to have a sexual encounter with a fictitious 11-year-old and 14-year-old girl has been sentenced on charges of child enticement.

“This office will continue to aggressively pursue individuals who seek to exploit young children,” said United States Attorney Sally Quillian Yates.  “Engaging in sexual acts with children is a vile and violent act, and perpetrators will be held accountable for this reprehensible conduct.”

Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI’s various Child Exploitation Task Forces scattered throughout the country are designed to identify, investigate, and present for prosecution those individuals like Mr. Antti who choose to prey on our nation’s children.  Mr. Antti, having been sentenced in federal court, will now have to answer for his predatory criminal conduct.”

According to United States Attorney Yates, the charges and other information presented in court: In June 2012, a special agent with the FBI’s Northwest Georgia Internet Crimes Against Children Task Force, working online and undercover, posted an ad on Craigslist.  The agent posed as a stepfather looking for people interested in having sexual relations with his two young step-daughters.  Antti responded to the ad.  When Antti was told that the girls were only 11 and 14 years old, he replied that he had a fantasy to engage in sex acts with very young children.  Antti then described in detail the sexual acts he intended to perform with the two young girls.

During subsequent on-line exchanges between the defendant and an undercover agent, Antti indicated that he would be traveling to Georgia from Chattanooga, Tenn.  He agreed to meet the undercover agent and both girls at the Econolodge in Chickamauga, Ga.  On the afternoon of June 8, 2012, Antti drove to the Econolodge in his gray BMW and was arrested.  Agents recovered two boxes of condoms from his vehicle.

Antti, 41, of Chattanooga, Tenn., has been sentenced by United States District Judge Robert L. Vining, Jr., to 15 years in prison today, followed by 15 years of supervised release.  He was convicted of these charges on April 18, 2013, upon his plea of guilty.  The defendant will be required to register as a sex offender when he is released from prison.

This case was investigated by the Federal Bureau of Investigation, the Rossville Police Department, the Murray County Sheriff’s Office, and the Walker County Sheriff’s Office.

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

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

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

ATLANTA – Dwayne Penn, a Clayton County Police Officer assigned to the U.S. Marshals Service fugitive task force, and Adrian Demetric Austin have been arrested on corruption, drug trafficking, and firearm charges. 

 “Penn’s abuse of trust is shocking,” said United States Attorney Sally Quillian Yates.  “Police officers who manipulate their positions create mistrust with the people they are sworn to protect.  As demonstrated by the number of police officer cases charged earlier this year, we are committed to pursuing these cases wherever they arise to restore the public’s trust in honest law enforcement.”

Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “While public corruption matters overall are a priority criminal investigative program within the FBI, any allegation of public corruption involving law enforcement officers takes on a particular sense of urgency. This matter, involving Clayton County Police Officer and U.S. Marshals Task Force Officer Dwayne Penn, was worked with close cooperation and support by the U.S. Drug Enforcement Administration (DEA). While the arrest of Officer Penn is disconcerting, the public should be reminded that the vast majority of those individuals serving within the criminal justice system do so with honor and integrity.”

Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division stated, “The vast majority of law enforcement officers serve the public with honor and distinction. Officers like these unfortunately tarnish the badge of the committed men and women of law enforcement. This individual will now have to face the consequences for his deplorable actions. The success of this investigation would have not been possible without the dynamic level of law enforcement cooperation.”

“The Clayton County Police Department remains dedicated and committed to serving and protecting Clayton County residents and businesses, said Clayton County Deputy Police Chief Christopher L. Butler.  “We ask that you continue your support of those unfaltering officers.”

According to United States Attorney Yates, the complaint and other information submitted in court:  In August 2013, Penn, of the Clayton County Police Department, allegedly conspired with Austin, a suspected 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.

The complaint alleges that the first planning meeting, which was surreptitiously recorded by law enforcement, occurred on August 21, 2013.  Penn drove his police car to the meeting.  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.  Penn reassured the confidential informant that they could cover his/her tracks with the source of supply to deflect suspicion.

Penn, Austin, and the confidential informant met again on August 27, 2013, at a parking lot in Decatur where the drug deal was to occur.  The meeting was at Penn’s request so they could further plan the operation.  Like the August 21 meeting, the August 27 meeting was surreptitiously recorded by law enforcement.  Penn drove his police car to the August 27 meeting as well.  The confidential informant entered Penn’s police car, where Austin was already waiting.  The three continued their discussion of the staged traffic stop, arrest, and seizure, which they agreed would occur the next day at that same parking lot.  Penn worked through the logistics, including where he would park during the cocaine deal; how Penn would conduct the fake traffic stop, arrest, and seizure; and the eventual split of the seized six kilograms of cocaine.   Penn drove Austin and the confidential informant around the parking lot, scouting out possible spots for various events the next day.  Penn even asked if Austin wanted to ride with him the next day.

As planned, on the morning of August 28, 2013, Penn and Austin arrived at the 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.  The confidential informant 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. 

Shortly after the confidential informant emerged from the 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 then 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.  They are charged in a criminal complaint with drug trafficking and firearm charges; Penn is also charged with public corruption. They made their initial appearance in United States District Court for the Northern District of Georgia before United States Magistrate Judge Alan J. Baverman today.

If convicted, Penn, 38, and Austin, 38, both of Atlanta, Ga., face a maximum sentence of up to life imprisonment for the drug trafficking charges; up to life imprisonment for the firearm charge; and, for Penn, up to 20 years on the public corruption charge; as well as fines of over $10 million dollars. 

Members of the public are reminded that the criminal complaint 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.

This 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 - Deborah West has been sentenced to 18 months in federal prison for stealing federal retirement benefits.

 “Federal employees work hard to earn retirement benefits to support them during their golden years,” said United States Attorney Sally Quillian Yates. “For fifteen years this defendant shamelessly stole from the federal retirement system, taking what she never worked for and never earned.”  

 “Fraudulently obtaining annuity payments is a crime of opportunity,” said Office of Personnel Management Inspector General Patrick E. McFarland.  “It is all too easy for individuals to take advantage of an aging relative, neighbor, or ward – and even easier to do so once they have passed away. This conviction demonstrates that we are dedicated to holding these individuals accountable for their crimes.”           

According to United States Attorney Yates, the charges and other information presented in court:  The defendant’s parents were both federal employees who received federal retirement benefits. The defendant’s father passed away in 1980 and his benefits were legitimately transferred to West’s mother. The defendant’s mother, also a federal employee, collected her benefits and her husband’s benefits until 1993, when she died. At that time, all of the benefits should have ended. However, the federal government never learned of the death and continued to pay the benefits directly to the mother’s bank account. The defendant stole those benefits by writing checks to herself from her deceased mother’s account, forging her mother’s signature and keeping the money for herself. In sum, between 1993 and 2008 the defendant stole more than $398,000 of federal benefits to which she was not entitled.

West, 64, of Norcross, Ga., was sentenced to one year, six months in prison to be followed by three years of supervised release by United States District Judge Thomas W. Thrash, Jr.  She was also ordered to pay restitution in the amount of $398,773.96.  West was convicted on these charges on June 10, 2013, after she pleaded guilty.

This case is being investigated by the Office of Personnel Management, Office of Inspector General.

The case was jointly prosecuted by Assistant United States Attorneys Christopher C. Bly in Atlanta and Kristi O’Malley of the District of Maryland.

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.

University Overbilled Medicare and Medicaid for Patients Enrolled in Clinical Trial Research at Emory’s Winship Cancer Institute

ATLANTA - The United States Attorney’s Office for the Northern District of Georgia and Attorney General Sam Olens announced today they have reached a settlement with Emory University, which agreed to pay $1.5 million to settle claims that it violated the False Claims Act by billing Medicare and Medicaid for clinical trial services that were not permitted by the Medicare and Medicaid rules.

Providers generally are not permitted to bill Medicare for medical care and services for which the clinical trial sponsor has agreed to pay.  Here, the United States and the State of Georgia alleged that Emory University billed Medicare and Medicaid for services the clinical trial sponsor agreed to pay (and, in some cases, actually did pay, thereby resulting in Emory’s being paid twice for the same service).  

“This settlement demonstrates our office’s continued commitment to protect crucial Medicare and Medicaid dollars,” said United States Attorney Sally Quillian Yates.  “Treatment of cancer is expensive, and Medicare and Medicaid dollars should be reserved for patients who need services that properly may be billed to these programs.”

“Our investigation of Emory University revealed the institution’s clinical trial false billing and led to today’s settlement,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General for the Atlanta region.  “Protecting Medicare -- and taxpayer dollars -- remains a top priority.”

Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “Federal funds, to include those of Medicare and Medicaid, are limited and are to be used as intended.  The FBI will continue to play a role in enforcing federal law that governs the use of these much needed funds.”

Attorney General Sam Olens stated, “Cancer research is paramount to saving and extending lives. However, strict rules govern the use of Georgia Medicaid dollars.  My office takes seriously its obligation to ensure that these resources are used properly.” 

This civil settlement resolves a lawsuit filed by Elizabeth Elliot under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the United States and share in any recovery obtained.   The case, pending in the Northern District of Georgia, is filed under United States of America and State of Georgia ex rel. Elizabeth Elliott v. Emory University, et al., Civ. No. 1:09-cv-3569-AT (N.D. Ga. Dec. 18, 2009).   Ms. Elliot will receive a share of the settlement payment that resolves the qui tam suit that she filed.  The claims settled in the civil settlement are allegations only, and there has been no determination of liability.

This case was investigated by the United States Attorney’s Office for the Northern District of Georgia; the U.S. Department of Health & Human Services, Office of Inspector General; the Federal Bureau of Investigation; and the Georgia Medicaid Fraud Control Unit. 

The civil settlement was reached by Assistant United States Attorney Darcy F. Coty.

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.

Emory Settlement Agreement

ATLANTA - Kevin Patrick Loughery, co-founder of the former Atlanta-area startup, Geometrix, has been sentenced for defrauding Geometrix’s investors by using approximately $835,000 in the investors’ funds for himself.
                                                                       
 “The defendant had a duty to keep the investor funds secure in an escrow account and to use them for the benefit of Geometrix.  Instead, he used the money to support his lavish lifestyle,” stated United States Attorney Sally Quillian Yates.  “The prosecution of this case and today’s sentence reflects our ongoing commitment protect the public from individuals who offer seemingly attractive investment opportunities, when they only intend to enrich themselves at the expense of others.”

Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s sentencing of Mr. Loughery will hopefully provide some sense of justice to those victim investors who now suffer substantial financial losses at the hands of Mr. Loughery’s greed.  The FBI will continue to identify, investigate, and prosecute individuals such as Mr. Loughery who divert investor-based funds into their own bank accounts.”

According to United States Attorney Yates, the charges and other information presented in court:  In 2008, Kevin Patrick Loughery began soliciting investments from his friends and business associates in Geometrix, a Georgia start-up company that he co-founded in 2007.  Loughery assured investors both telephonically and via email that their investment would remain in escrow until the completion of Geometrix’s issuance of stock and accompanying documentation. 

In an email to one such investor, Loughery assured the investor that the money would be kept in an escrow account, and Loughery instructed the investor to wire the money into such an account.  However, the money never went to an escrow account because Loughery’s wiring instruction was not for an escrow account, but rather was for Loughery’s own account for a separate business, KLM Investments, of which Loughery was the sole proprietor.  The investor wired over $300,000 into the account.  Loughery then sent the investor an email stating that he would receive 400,000 shares of Geometrix for his investment, which the investor never received.  In total, Loughery solicited $835,000 in investments from various investors that were supposed to be kept in escrow but instead were spent by Loughery.  Loughery subsequently declared bankruptcy. 

Loughery, 49, of Atlanta, Ga., was sentenced to two years, six months in prison. He was also ordered to serve three years on supervised release following his prison term and to pay $780,000 in restitution to the victims of his fraud.   On March 22, 2013, Loughery pleaded guilty to a Criminal Information charging him with wire fraud. 

This case was investigated by the Federal Bureau of Investigation.

Assistant United States Attorney Karlyn J. Hunter 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 - Cordell Fleming pleaded guilty today in federal court to extorting money from individuals due Social Security benefits.

 “A federal employee, in a position of public trust, preying on the disabled and the indigent shocks the conscience,” said United States Attorney Sally Quillian Yates. “This defendant extorted money from needy, disabled members of our community by promising them expedited Social Security payments in return.”

According to United States Attorney Yates, the charges and other information presented in court:  Fleming worked as Claims Representative for the Social Security Administration.  As part of his duties, he processed requests for Supplemental Security Income (SSI) payments for eligible individuals.  However, Fleming offered to “expedite” the processing time of SSI payments to SSI beneficiaries and SSI beneficiary payees in exchange for a fee. In an attempt to make the expedited SSI payments appear legitimate, Fleming frequently created false documents that purportedly justified the expedited disbursement of SSI payments.  During the course of the scheme, from October 2012 to April 2013, Fleming extorted and attempted to extort money (in amounts ranging from approximately $500 to $1,800) from at least nine SSI beneficiaries or their representative payees.

On August 14, 2013, Fleming, 46, of Conyers, Ga., was charged with one count of extortion and he pleaded guilty to this count today.  Fleming could receive a maximum sentence of 20 years in prison and a fine of up to $250,000.  In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders. 

Sentencing is scheduled for November 14, 2013, at 11:30 a.m., before United States District Judge Timothy C. Batten, Sr.

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

Assistant United States Attorney Jeffrey W. Davis and Special Assistant United States Attorney Diane C. Schulman are prosecuting the case.

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

ATLANTA - Mark Gary has been sentenced for bribing former Gwinnett County Commissioner Shirley Lasseter in 2009 to secure approval of a proposed waste transfer station in which he held a personal stake.

United States Attorney Sally Quillian Yates said, “Businessmen who pay to play are making a losing bet.  Mr. Gary will now pay with his freedom for corrupting Gwinnett County’s approval of competing real estate developments.”

Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s sentencing illustrates the consequences of bypassing proper procedures of securing contracts and doing business with government agencies.  The FBI will continue to provide its investigative resources and expertise in addressing public corruption matters at all levels of government.”

According to United States Attorney Yates, the charges and other information presented in court:  Mark Gary is a local Gwinnett County businessman.  In or about October 2008, Gary sought to develop a $4 million solid waste transfer station, which would serve as a way station in the trash collection process, consolidating trash from haulers for shipment to more distant landfills.  Gary submitted the necessary application to obtain the requisite County approvals and permits, which required approval by the Gwinnett County Board of Commissioners.

Shirley Lasseter was elected to the Gwinnett County Board of Commissioners as the District 1 representative in the fall of 2008 and took office in January 2009.  Gary worked to help get Lasseter elected as a county commissioner. Almost immediately after taking office, Lasseter appointed Gary to the Gwinnett County Planning Commission.

In March or April 2009, Gary spoke with Lasseter and her son, John Fanning, about Gary’s pending application to allow development of the solid waste transfer station.  Gary offered money to Lasseter and Fanning, who discussed amounts with Gary of as much as $100,000, in exchange for Lasseter’s Commission vote to approve the pending application.  Given her public position and to avoid any scrutiny, Lasseter directed Gary to speak with and to provide the money to Fanning. 

Gary’s permit application came before the Commission for approval on April 28, 2009. Consistent with her agreement with Gary, Lasseter voted to approve the development.  Several months later, Gary lived up to his end of the bargain.  In June 2009, Gary paid Fanning $30,000.  Gary paid this amount by giving Fanning $30,000 worth of chips at an out-of-state casino.

Gary, 40, of Duluth, Ga., was sentenced to two years in prison to be followed by three years of supervised release.  Gary was convicted on October 1, 2012, after he pleaded guilty to an Information charging him with this crime.

Lasseter was sentenced on September 5, 2012, to serve two years, nine months in prison for her role in accepting illegal bribes. Her son, John Fanning, was sentenced on September 18, 2012, to four years, nine months in prison for his role in soliciting and accepting illegal bribes for his mother, as well as a drug offense.

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

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

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

ATLANTA – Hakeem Omar pleaded guilty in federal court to fraudulently obtaining his United States citizenship and for his role in a bribery conspiracy.

“This defendant’s attempts to subvert the immigration process by offering bribes to a federal agent were unsuccessful,” said United States Attorney Sally Quillian Yates.  “The United States is the land of promise for many, but we are also a land of laws.  Bribing a federal agent is against the law, and will only lead to jail and deportation, not U.S. citizenship.”

“Maintaining the integrity of our immigration system is a core mission of the Department of Homeland Security,” said David P. D’Amato, special agent in charge of ICE’s Office of Professional Responsibility (OPR) for the Southeast Region. “Those who seek to undermine the law through bribery and corruption will be investigated, arrested and brought to justice. This guilty plea should be a strong warning that OPR and the U.S. Attorney’s Office take this crime seriously and will prosecute it to the fullest extent of the law.”

According to United States Attorney Yates, the charges and other information presented in court:  Beginning in September 2010, and continuing until at least July 2012, Omar paid a series of bribes to a Special Agent with the Department of Homeland Security who was working in an undercover capacity.  In exchange for the bribes, Omar sought immigration benefits as well as other benefits.  Over a two-year period, he paid thousands of dollars to the undercover special agent for what he believed was assistance with his immigration status in the United States, including obtaining United States citizenship through naturalization.    

Omar, 31, of Atlanta, Ga., could receive a maximum sentence of five years in prison and a fine of up to $250,000.  The defendant will be stripped of his fraudulently obtained U. S. citizenship, and likely faces removal from the United States.  However, 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 October 24, 2013, at 10 a.m., before United States District Judge Steven P. Jones. 

This case is being investigated by the U.S. Immigration and Customs Enforcement’s Office of Professional Responsibility.

Assistant United States Attorney Skye Davis is prosecuting the case.

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

Defendant Claimed Over $5.5 Million in Fraudulent Tax Refunds

ATLANTA - Bradford Thomas has been arraigned on charges of wire fraud, aggravated identity theft, and theft of government funds.  Thomas was indicted by a federal grand jury on August 13, 2013.

 “This defendant is accused of attempting to defraud the U.S. Treasury out of millions of dollars by seeking 1200 tax refunds in the names of unsuspecting taxpayers,” said United States Attorney Sally Quillian Yates. 

 “Identity thieves are becoming more devious, creative, and conniving,” stated Veronica Hyman-Pillot, Special Agent in Charge, IRS-Criminal Investigation.  “They steal our identities, steal government money and prey upon innocent citizens. These criminals must be and will continue to be pursued in order to obtain justice for the victims as well as justice for our nation.”

According to United States Attorney Yates, the charges, and other information presented in court:  From 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.  The 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, two locations, a business named “Immaculate Autos” in Kennesaw, Ga., and his primary residence in Acworth, Ga., were searched by federal agents.  Both are suspected to be places where electronic returns were submitted to the IRS.

Bradford Thomas, 46, of Cobb County, Ga., was arraigned today before United States Magistrate Judge Linda T. Walker.

The indictment charges 10 counts of wire fraud, 10 counts of aggravated identity theft, and 8 counts of theft of government funds.  Each wire fraud count carries a maximum sentence of 20 years in prison and each theft of government funds count carries a maximum sentence of 10 years in prison.  In addition, the aggravated identity theft charges carry at least one mandatory two-year consecutive sentence to any other sentence imposed.  Each count also carries a fine of up to $250,000.  However, 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.  The United States is also seeking the forfeiture of all funds derived from or involved in this scheme.

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

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

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

NEWNAN, Ga. - Hitendrafumar Patel has been sentenced to over two years in prison for hiring an undercover officer to burn his dry cleaning business.

“This defendant’s plot to burn down his own failing business could have had horrific consequences, possibly resulting in the destruction of property and loss of life to firefighters and innocent citizens,” said United States Attorney Sally Quillian Yates. 

“ATF in partnership with our local law enforcement arrested a potentially violent individual who was posing a significant danger to public safety personnel and the community,” said ATF Assistant Special Agent in Charge Ray Brown.  “Through this cooperative effort, we were able to stop any further potential harm to the citizens of Bremen, Georgia.”

According to United States Attorney Yates, the charges and other information presented in court:  In April 2012, the Georgia Bureau of Investigation received a tip from a confidential informant that Hitendrafumar Patel had been making inquiries to find someone who would be willing to burn down his dry cleaning business, Economy Cleaners, located in Bremen, Ga.  The confidential informant, acting at the direction of law enforcement officers, called Patel and gave him the telephone number of an undercover GBI agent, who would pose as an arsonist.  Patel phoned the undercover agent and arranged a meeting at Economy Cleaners to discuss the intended arson.  The meeting took place on June 12, 2012, and was audio-video recorded by the undercover agent.  Patel told the agent that the business was not making money and that he wanted it burned so that he could pay off the mortgage and debts with the insurance proceeds.  The agent and Patel agreed on a price for the arson job, and the agent gave Patel a list of materials that Patel needed to supply the agent to use for the fire.  Patel also told the agent about another property he owned in Bowden, Ga., which Patel said he might hire the agent to burn after the Bremen arson was complete. 

The agent returned to the dry cleaners on June 30, 2012.  Patel had acquired the incendiary materials, and gave them to the undercover agent.  He then showed the agent where he hid the key to the business, and instructed the agent on how to unlock the door.  Patel paid the agent $250, promising to pay him an additional $750 after he had collected the insurance proceeds.  Patel was arrested immediately after the agent left the meeting.     

Patel, 44, of Bremen, Ga., was sentenced to two years, six months in prison to be followed by three years of supervised release by United States District Judge Timothy C. Batten, Sr.  Patel was convicted of these charges on April 29, 2013, after he pleaded guilty.

This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  Assistance was provided by the Georgia Bureau of Investigation and City of Bremen Fire/Rescue. 

Assistant United States Attorney Teresa D. Hoyt prosecuted the case.

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

ATLANTA - Arnold Tobias Gervais, has been sentenced for defrauding the IRS out of more than $3.4 million in federal income tax refunds while he was in state custody. 

“Those who cheat the IRS take money away from everyone who pays his or her fair share of taxes,” said United States Attorney Sally Quillian Yates.  “The United States Attorney’s Office and the IRS are on the lookout for tax cheats and will aggressively pursue those individuals who try to beat the system.”

“Today’s sentence hopefully reassures the public that individuals who attempt to enrich themselves at the expense of the United States Treasury will be held accountable.” stated Special Agent in Charge, Veronica Hyman-Pillot.  “IRS Criminal Investigation will continue to aggressively pursue those individuals who utilize fraudulent methods to steal from the American taxpayer.”

Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “It is hoped that today’s sentencing of Mr. Gervais, the second conviction for him on false tax filing related charges, will have a sufficient deterrent impact on him.  The FBI will continue to work with its various law enforcement partners in investigating such matters involving income tax refund fraud.”

According to United States Attorney Yates, the charges and other information presented in court: Gervais was convicted in May 2008 and sentenced to five years in prison by the Superior Court of Cobb County, Ga., for theft by taking after he submitted a fraudulent tax return in an attempt to obtain a tax refund of more than $600,000 from the State of Georgia. Gervais was incarcerated on that charge from July 13, 2007, through February 26, 2010.

On March 16, 2009, while in state custody, Gervais caused his then wife to file a phony 2008 Form 1040 with the IRS.  The tax return contained a claim for payment of an income tax refund in the amount of $811,073, which Gervais knew to be false, fictitious, and fraudulent.

In addition, Gervais filed, or caused to be filed, six more false claims for federal income tax refunds - five in his own name for tax years 2004, 2005, 2006, 2007, and 2009, and one in the name of an acquaintance for tax year 2009.  All seven of the returns claimed false wages and federal tax withholding. And all seven of the returns falsely claimed that the taxpayer had earned a significant amount of wages from a fictitious company called “Safety Shoes & More, Inc.,” which was allegedly located in Rome, Ga. The returns also falsely claimed that the corporation had withheld from those wages a significant amount of federal income tax.  The total amount of fraudulent tax refunds that Gervais sought from the IRS was $3,488,135.  Of that amount, the IRS paid $2,832,268. 

The United States Attorney’s Office filed two civil forfeiture actions, which resulted in the seizure of $2,232,012 from accounts controlled by Gervais, thereby reducing the out-of-pocket loss to the IRS.

Gervais, 34, of Marietta, Ga., was sentenced by United States District Judge Timothy C. Batten, Sr. to serve the statutory maximum of 5 years in prison.  He was also ordered to serve 3 years on supervised release following his prison term and ordered to pay $2,832,268 in restitution to the IRS.  On January 16, 2013, Gervais pleaded guilty to a Criminal Information charging him with filing false claims for income tax refunds.

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

Assistant United States Attorneys Russell Phillips and Michael J. Brown prosecuted the case.

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

ATLANTA – Mahendra Patel has pleaded guilty to conspiring with former Atlanta Public Schools (APS) Chief Information Officer (CIO) Jerome Oberlton to receive kickbacks in exchange for Oberlton using his influence at APS to award a $780,000 computer project to the firm. 

“Patel subverted the fairness of the contracting process for his own benefit, and ultimately undermined the trust taxpayers place in APS to provide high-quality educational services,” said United States Attorney Sally Quillian Yates.  “In a time when educational resources are scarce or often non-existent, his fraud helped steer a lucrative computer contract to the highest bidder – one that was willing to line his pockets in exchange for work.”

Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “With today’s guilty plea, Mr. Patel acknowledges his criminal wrongdoing for which he will now be held accountable.  The FBI will continue to provide its investigative resources and expertise in exposing such corrupt kickback-based contract deals that subvert the normal process and cost taxpayers additional money.”

“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 Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation.  “Individuals who line their pockets with profits from fraudulent schemes should know, they will not go undetected and will be held accountable.”

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

From the start of the project in January 2007, Patel and Oberlton conspired to influence the RFP process and, ultimately, caused the winning bidder to be selected in exchange for kickbacks paid to both.  In order to hide the bribes, Oberlton created Global Technology Partners (GTP) and, later, Global Technology Services (GTS) and funneled the bribe payments through these shell companies.  Oberlton was able to conceal his ownership of GTP and GTS from APS even when questions arose in 2007.  In contrast, the kickbacks to Patel were disguised as sales commissions for non-existent consulting work that he supposedly performed for the shell companies.  In reality, Patel acted as an intermediary, helping to negotiate the kickbacks between Oberlton and Company A and then signed fake sales consultant agreements to hide his role.  The Detroit-based technology company ultimately paid approximately $60,000 in bribes to Oberlton and Patel over almost six months and, in return, the company received almost $800,000 in APS project work. 

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

Patel, 45, of Kennesaw, Ga., pleaded guilty to conspiring with Oberlton to accept bribes, which carries a maximum term of imprisonment of five years and a fine of $250,000.  In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders. A sentencing date for Patel has not yet been set by the Court. 

A trial date for Jerome Oberlton has not been set.

These cases are being investigated by the Federal Bureau of Investigation and Internal Revenue Service.

Assistant United States Attorneys Kurt R. Erskine and Jill 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 HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.

ATLANTA – Mahendra Patel has pleaded guilty to conspiring with former Atlanta Public Schools (APS) Chief Information Officer (CIO) Jerome Oberlton to receive kickbacks in exchange for Oberlton using his influence at APS to award a $780,000 computer project to the firm. 

“Patel subverted the fairness of the contracting process for his own benefit, and ultimately undermined the trust taxpayers place in APS to provide high-quality educational services,” said United States Attorney Sally Quillian Yates.  “In a time when educational resources are scarce or often non-existent, his fraud helped steer a lucrative computer contract to the highest bidder – one that was willing to line his pockets in exchange for work.”

Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “With today’s guilty plea, Mr. Patel acknowledges his criminal wrongdoing for which he will now be held accountable.  The FBI will continue to provide its investigative resources and expertise in exposing such corrupt kickback-based contract deals that subvert the normal process and cost taxpayers additional money.”

“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 Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation.  “Individuals who line their pockets with profits from fraudulent schemes should know, they will not go undetected and will be held accountable.”

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

From the start of the project in January 2007, Patel and Oberlton conspired to influence the RFP process and, ultimately, caused the winning bidder to be selected in exchange for kickbacks paid to both.  In order to hide the bribes, Oberlton created Global Technology Partners (GTP) and, later, Global Technology Services (GTS) and funneled the bribe payments through these shell companies.  Oberlton was able to conceal his ownership of GTP and GTS from APS even when questions arose in 2007.  In contrast, the kickbacks to Patel were disguised as sales commissions for non-existent consulting work that he supposedly performed for the shell companies.  In reality, Patel acted as an intermediary, helping to negotiate the kickbacks between Oberlton and the Detroit-based technology company and then signed fake sales consultant agreements to hide his role.  The Detroit-based technology company ultimately paid approximately $60,000 in bribes to Oberlton and Patel over almost six months and, in return, the company received almost $800,000 in APS project work. 

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

Patel, 45, of Kennesaw, Ga., pleaded guilty to conspiring with Oberlton to accept bribes, which carries a maximum term of imprisonment of five years and a fine of $250,000.  In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders. A sentencing date for Patel has not yet been set by the Court. 

A trial date for Jerome Oberlton has not been set.

These cases are being investigated by the Federal Bureau of Investigation and Internal Revenue Service.

Assistant United States Attorneys Kurt R. Erskine and Jill 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 HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.

ATLANTA - Thomas Dickson has pleaded guilty to defrauding more than 50 clients out of funds that were deposited into his law firm’s trust account.

“As a lawyer, Dickson had a duty to act with his clients’ best interests in mind,” said United States Attorney Sally Quillian Yates.  “Instead, he used his position at the law firm to steal from clients he was supposed to protect.”

Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “The defendant in this matter displayed a reckless disregard for his firm’s many clients by diverting monies due them to his personal account.  The FBI will continue to investigate such cases of criminal misconduct and bring them forward for prosecution.”

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

Between February 24, 2010, and January 6, 2012, Dickson directed his law firm’s accounting department to unlawfully transfer over $300,000 from the law firm’s trust account to a business checking account in Plano, Texas.  Dickson led the firm’s accounting department to believe that the funds were being transferred on behalf of TIC clients to pay third party expenses. Instead the money was transferred into a personal checking account controlled by Dickson and his wife.

In January 2012, the law firm initiated an internal investigation and Dickson, 52, of Atlanta, Ga., was terminated.  In March 2013, Dickson was disbarred by the Georgia State Bar.        

The charge of wire fraud in this case carries a maximum sentence of 20 years in prison and a fine of up to $250,000.00. 

Sentencing is scheduled for October 30, 2013, at 10:00 a.m. before United States District Judge Willis B. Hunt.

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

Assistant United States Attorney Jeffrey Brown 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.

GAINESVILLE, Ga. – David Alan Wolf has been sentenced to 14 years for enticing a minor to engage in sexual activity.

“After this defendant used the internet to arrange for a sexual encounter with a vulnerable, eight-year-old girl, he then traveled to Atlanta in an effort to commit this repugnant act” said United States Attorney Sally Quillian Yates.  “Thankfully, there was no eight-year-old, and law enforcement arrested him.  Sexual predators have no place in our community and we will see to it that they are caught, prosecuted, and punished.”

“The Barrow County Sheriff’s Office will continue to be vigilant in our attempt to apprehend those who prey on our children,” said Barrow County Sheriff Jud Smith.   “Our Investigators are working very hard every day to keep these predators off the streets and protect our communities.” 

According to United States Attorney Yates, the criminal information, and material presented in court:  In August 2012, a Barrow County investigator, operating undercover and posing as a thirty-four-year-old female with an eight-year-old daughter, was contacted online by an individual later identified as David Alan Wolf.  Wolf indicated that he was interested in engaging in sex acts with the investigator’s eight-year-old daughter, including oral sex and intercourse.  Wolf and the undercover investigator communicated online for close to two weeks.  During that time, Wolf described in detail his sexual fantasies and the sex acts he would perform on the eight-year-old girl.  On August 28, 2012, Wolf traveled from South Carolina to Georgia to meet the investigator and her fictitious daughter and was arrested upon his arrival.

Wolf, 63, of Rock Hill, S.C., was sentenced today by United States District Judge William C. O’Kelley to 14 years in prison to be followed by lifetime supervised release.  He was also ordered to pay a fine of $5,000.  The defendant will be required to register as a sex offender when he is released from prison.

This case was investigated by the Barrow County Sheriff’s Office.

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 - Torrey Marable and two codefendants, Rico Blackwell and Jason Blackwell, were sentenced today to federal prison for armed bank robbery.

“These men terrorized bank employees when they entered the banks they robbed with guns drawn,” said U.S. Attorney Sally Quillian Yates.  “Serious violent crimes should be met with serious prison sentences, such as those imposed in this case, to protect our communities.”

Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s sentencing ends a violent crime spree and removes four dangerous individuals from our streets.  The FBI commends the many law enforcement officers and agents that worked hard in this matter but the contributions made by those observant and responsive officers of the Austell Police Department who conducted the car stop on these individuals after a bank casing there is particularly noteworthy and commendable.”

 According to United States Attorney Yates, the charges and other information presented in court:  Beginning on August 9, 2012, and continuing until his arrest on September 5, 2012, Torrey Marable robbed banks located in Atlanta, Dunwoody, and Marietta, Ga.  Deandre Markee King and Rico Blackwell joined Marable in the Dunwoody robbery, during which all three men brandished their guns and used them to move the tellers into the vault and force them to hand over more than $71,000. 

On September 4, 2012, Marable and King canvassed another bank in Austell, Ga., forming their plan to rob the bank.  On September 5, 2012, Jason Blackwell drove Marable, King and his half-brother Rico Blackwell, near a PNC Bank in Austell.  At the same time, law enforcement was on the lookout for a car matching the description of the one Jason Blackwell was driving.  They were also looking for a man with dreadlocks, which was the style of Marable’s hair.  Before the robbery occurred, Austell police pulled the car Jason Blackwell was driving over, finding Marable, King and Rico Blackwell all with semi-automatic handguns within their reach.  Police also found two surgical masks, two bandanas and latex gloves in the car.   

Marable, 21, of Decatur, Ga., was sentenced by United States District Judge Evans to 27 years in prison to be followed by 5 years of supervised release.  Marable was ordered to pay restitution in the amount of $89,644.  He was convicted of these charges on April 4, 2013, upon his plea of guilty.

Rico Blackwell, 22, of Decatur, Ga., received 138 months in prison and was ordered to pay restitution in the amount of $71,668; and Jason Blackwell, 32, of Decatur, Ga., received 84 months in prison.  These prison sentences will be followed with 3 years of supervised release.  Deandre Markee King, 28, of Decatur, Ga. will be sentenced on August 28, 2013.

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

Assistant United States Attorney Susan Coppedge prosecuted the case.

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

ATLANTA - Laquan Smith was sentenced to 18 years in federal prison for the armed robbery of eight businesses and for possession of a stolen firearm.

 “Over a short three-week span in December 2011, this defendant—who was already on state parole for armed robbery and on bond for burglary—went on an armed robbery rampage in the Memorial Drive area, going so far as to tie up his victims during three robberies,” said United States Attorney Sally Quillian Yates.  “With this conviction and sentence, his life of crime on the streets has ended for the foreseeable future.

 “The criminal history of Smith shows a complete and utter disregard for the law and lives of others,” said ATF Special Agent in Charge Christopher Shaefer. “As an agency and unified law enforcement community, we will not tolerate armed violent felons terrorizing and reducing the quality of life in the neighborhoods where we live, work, and play.”

“The sentencing of Laquan Smith exemplifies the joint commitment of local and federal law enforcement agencies to ensure violent offenders are brought to justice and are not allowed to continue to victimize our community.  This type of lawless behavior is not acceptable and we are steadfast in our efforts to arrest those who engage in such crimes,” said DeKalb County Police Chief Cedric Alexander.

 According to United States Attorney Yates, the charges and other information presented in court:  From December 8 through December 27, 2011, Smith, who was aided by Troy Thomas in two robberies, robbed eight different businesses, including two Dollar General stores on December 20, and 27, 2011; three Family Dollar stores on December 8, 14, and 22, 2011; Pet Supermarket on December 18, 2011; Orbit Video on December 19, 2011; and a Subway on December 22, 2011.  During the robberies, Smith took a total of approximately $7,410.  Smith was arrested two weeks after the December 27, 2011, Dollar General robbery, after an alert individual recorded the license plate number of the getaway car used in that robbery and reported it to law enforcement.

Smith, 24, of Stone Mountain, Ga., was sentenced today by United States District Judge Richard W. Story to serve 18 years in federal prison to be followed by 5 years of supervised release, and fined $900.  Smith was convicted of these charges on January 31, 2013, upon his plea of guilty.

Troy Thomas, Smith’s co-defendant who participated in two of the robberies, was sentenced to 11 years, 2 months on April 29, 2013, by Judge Richard W. Story.

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

Assistant United States Attorney Joseph Plummer prosecuted the case.

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

ATLANTA - Mary Bridges Clark has pleaded guilty in federal district court to theft of government funds.
 
 “Theft of Social Security funds is, at its core, stealing from the elderly, the disabled, and those with the greatest need,” United States Attorney Sally Quillian Yates.  “This defendant stole over $200,000 in Social Security benefits that were intended for her mother for nearly two decades after her mother passed away, even though she knew she was not entitled to them.” 

According to United States Attorney Yates, the charges and other information presented in court:  Clark’s mother received monthly Social Security benefits which were deposited into a joint bank account Clark and her mother shared.  Clark’s mother died in April 1993.  After her mother’s death, Clark continued to receive her mother’s monthly benefits into the joint account.  In total, the United States Treasury, acting on behalf of the Social Security Administration, deposited $219,133.00 into the joint account after her mother’s death.  Clark knew this money was intended for her mother, yet she kept the money and used it for her own personal expenses, and attempted to conceal her mother’s death from the Social Security Administration.

Clark, 64, of Loganville, Ga., was charged in a Criminal Information on July 17, 2013, on one count of theft of government funds and pleaded guilty to that count.  She could receive a maximum sentence of 10 years in prison and a fine of up to $250,000.  In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders. 

Sentencing is scheduled for October 21, 2013, at 3 p.m. before United States District Judge Carnes.

This case is being investigated by Special Agents of the Social Security Administration, Office of Inspector General.

Assistant United States Attorney Glenn D. Baker and Special Assistant United States Attorney Diane C. Schulman are prosecuting the case.

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

ATLANTA - Frederick Roberts has been sentenced to serve over seven years in federal prison for filing fraudulent federal and state tax returns and for stealing the identities of his victims.

“Identity thieves who file fraudulent tax returns rob from the public fisc and cause immeasurable damage to the innocent victims whose names were stolen,” said United States Attorney Sally Quillian Yates. “We have a duty to protect the tax dollars paid by hardworking Americans, and we will not stand idly by while criminals like Roberts steal those funds.”

According to United States Attorney Yates, the charges and other information presented in court: Roberts prepared fraudulent federal and state income tax returns using stolen identities. He submitted tax returns in other people’s names seeking large refunds and had the checks sent to an address where he could retrieve the mail. He cashed the refund checks with unscrupulous check cashers, who were willing to accept the checks even though none of them were in Roberts’ name. Roberts sought over $899,000 in refunds between May 2009 and March 2011, and he actually received $866,436.66.

“Identity thieves are becoming more devious, creative, and conniving,” said Veronica Hyman-Pillot, Special Agent in Charge IRS Criminal Investigation. “They steal our identities, steal government money and prey upon our citizens. Be assured that IRS Criminal Investigation, with our law enforcement partners, will continue to be proactive in the investigation of individuals who engage in similar behavior.   IRS is extremely grateful for the cooperation and assistance we have received from our partners at the local, state and federal level, especially the United States Secret Service, United States Postal Service and the Georgia Department of Revenue.”

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

 Roberts, 51, of Atlanta, Ga., was sentenced today by United States District Judge William S. Duffey, Jr., to seven years, three months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $866,436.66.  Roberts was convicted on these charges on March 8, 2013, after he pleaded guilty.

This case is being investigated by the Internal Revenue Service Criminal Investigation, the United States Secret Service, and the Georgia Department of Revenue Office of Special Investigations.

Assistant United States Attorney Christopher C. Bly 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.

Defendant’s Involvement in Church Youth Group Provided Access to Victim

ATLANTA - Stanley Keith Johnson has been sentenced for producing, receiving and possessing child pornography.

“As a school bus driver and church youth group volunteer, this defendant had access to some of the most innocent and vulnerable members of society,” United States Attorney Sally Quillian Yates said.  “He downloaded child pornography and took explicit photographs of a fatherless young boy he was trusted to mentor.  Children are not sexual objects, and persons who see them that way can expect to be caught and go to prison.”

“The U.S. Postal Inspection Service is pleased with today’s sentencing. As long as child predators use the U.S. mail to exploit children, Postal Inspectors will continue to target those responsible. The use of the U.S. mail to victimize children will not be tolerated, plain and simple,” said Keith Morris, Postal Inspector in Charge of the Atlanta Division.

“Individuals such as Mr. Johnson, who gain the confidence of children through a position of trust in order to victimize children, will be thoroughly investigated and held accountable,” said Vernon Keenan, Director of the Georgia Bureau of Investigation.           

According to United States Attorney Yates, the charges and other information presented in court:  From November 2010 to April 2011, the defendant placed orders with a foreign company for approximately 180 DVDs containing videos of nude boys between the ages of 8 and 14.  He received those videos through the United States mail.  A federal search warrant executed at his house in Mableton, Ga., in December 2012, revealed that he not only had received the videos but that he possessed child pornography on his home computer.  A forensics examination of the computer showed that he had produced images of child pornography going back to May 2004.  The victim was an 8-year-old child whom the defendant had befriended at his church, where he volunteered to work with the youth group and especially with young boys with no fathers in their lives. 

After the search warrant was executed, Cobb County Public Schools fired the defendant from his position as a bus driver and bus driver supervisor.  The defendant had been given a work computer to use for his supervisory duties.  After he was fired, Cobb County Public Schools looked at the computer and saw that the defendant had downloaded images of child pornography on it.  He also used his work computer to check on the delivery status of the child pornography videos that he had ordered.

Johnson, 57, of Mableton, Ga., was sentenced to 15 years in prison to be followed by a lifetime of supervised release.  Johnson was convicted of these charges on April 26, 2013, after he pleaded guilty.

This case was investigated by the United States Postal Inspection Service with assistance from the Georgia Bureau of Investigation and the Cobb County Police Department.

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

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

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

Defendant Sought Immigration Benefits in Pay-to-Play Scheme

ATLANTA – Ibrahim Barrie pleaded guilty in federal court for his role in a bribery conspiracy seeking immigration benefits.

 “This defendant attempted to subvert the immigration process by offering bribes to a federal agent whom he believed would help him,” said United States Attorney Sally Quillian Yates.  “In the end, he faces significant jail time and likely deportation for his actions.”

 “The ICE Office of Professional Responsibility takes bribery of ICE officials very seriously and makes it a priority to thoroughly pursue investigation of such allegations. In this case, Mr. Barrie ignored the lawful route to pursue immigration benefits in favor of offering monetary bribes for expediting his residency status as well as other benefits. As a result, he is instead facing the possibility of prison time followed by deportation,” said David P. D’Amato, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Office of Professional Responsibility for the Southeast Region.

According to United States Attorney Yates, the charges and other information presented in court:  Beginning in September 2010, and continuing until at least July 2012, Barrie paid bribes to a special agent with the Department of Homeland Security who was working in an undercover capacity, in exchange for immigration benefits as well as other benefits.  Over a two-year period, he paid thousands of dollars to the undercover special agent for what he believed was assistance with his immigration status in the United States, including obtaining a permanent resident card, commonly known as a green card. 

Barrie, 32, of Atlanta, could receive a maximum sentence of five years in prison and a fine of up to $75,000.  The defendant likely faces removal from the United States.  However, 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 September 30 2013, at 10:00 a.m. before United States District Judge Steven P. Jones. 

This case is being investigated by U.S. Immigration and Customs Enforcement’s Office of Professional Responsibility.

Assistant United States Attorney Skye Davis is prosecuting the case.

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

Defendants Tried to Rob a Government Cooperator at Gunpoint

ROME, Ga. - Ospicio Olea Aguilar has been sentenced for his role in conspiring to steal cocaine and marijuana from a man he thought was a drug dealer, but who in reality was working at the direction of law enforcement officers.

“These seven defendants played a risky game when they tried to rob a drug dealer at gunpoint,” United States Attorney Sally Quillian Yates said.  “Thanks to the quick action of law enforcement, the armed robbery ended not in tragedy but in the arrests of all the men involved in this conspiracy.”

 According to United States Attorney Yates, the charges and other information presented in court: In October 2011, Aguilar, and co-defendants Tedrick Whiters and Sergio Jovanny Bibiano Vasquez, approached a man in Marietta, Ga., who they believed would be able to sell them cocaine.  Unbeknownst to them, this man had previously cooperated with law enforcement, and he contacted officers to let them know what happened.  He agreed to work at the direction of law enforcement. 

 Over the following weeks, the cooperator spoke and met with Aguilar, Vasquez and Whiters to discuss the drug deal.  Whiters attempted to have the drug deal take place in Atlanta, but the cooperator stated that his supplier was from Dalton, Ga., and would only go as far south as Cartersville.  Whiters, Aguilar and Vasquez convinced the cooperator to go to Atlanta on one occasion to discuss the deal.  The real purpose of the meeting was to rob  him of the drugs in case he happened to have the drugs with him.  Co-defendant Frederico Jerburshio Jones followed the cooperator, and was prepared to rip off the cooperator at gunpoint if he had the drugs with him.  Eventually, Whiters, Aguilar and Vasquez asked the cooperator to provide five kilograms of cocaine and 150 pounds of marijuana for a total cost of $217,500.  They agreed that the deal would take place on November 2, 2011, at the Cracker Barrel restaurant off I-75 exit 290 in Cartersville.

Around 11:00 a.m. on November 2, 2011, law enforcement set up surveillance in an area overlooking Cracker Barrel.  As they set up surveillance, they noted that co-defendants Willie Charles Townsend, Corwin Jackson Finsley and Maurice Jammorow Beavers were setting up counter surveillance.  These three men left their first meeting site and moved to different locations, some of them out of the line of sight of law enforcement. 

 Eventually, Vasquez called the cooperator and said that they were near exit 290.  Vasquez showed up in a car driven by Finsley, with Jones in the front passenger seat.  Jones got out of the car, confirmed that the cooperator had the drugs, and told him that they should move the deal next door to the Shell gas station, which, unlike Cracker Barrel, did not have surveillance cameras.  The cooperator agreed and moved his vehicle to the Shell station. 

 When he got out of his car, Jones pulled a gun on him and ordered him to get into Jones’s car.  The cooperator struggled with Jones and was able to wrestle the gun away.  He threw the gun under a car and ran into the Shell station convenience store.  Jones ran after him, but the cooperator held the doors to the store shut.  The cooperator was wearing a wire while all of this was happening.  Law enforcement knew that what was supposed to be a buy-bust operation was turning into a drug rip and attempted kidnapping.  Agents moved in and arrested Jones as he attempted to flee, and also stopped the car that Finsley was driving.  Law enforcement drew their firearms on Finsley as he attempted to reach under his seat, where officers later found a 9mm Kel-Tech pistol.  Officers also stopped the car that Townsend and Beavers were in as they attempted to drive away.  Because Whiters and Aguilar were in a different area overlooking the scene, they were able to drive away.  But, they were arrested later that day in Atlanta.

Aguilar was the last of seven defendants to be sentenced for this crime.  The defendants were charged with one count of conspiracy to attempt to commit a robbery and one count of possessing firearms in relation to the robbery.  They were also charged with one count of conspiracy to possess with intent to distribute cocaine and marijuana and one count of possessing firearms in furtherance of drug trafficking.  The defendants were sentenced as follows:

•Aguilar, 28, of Atlanta, Georgia, has been sentenced to 15 years in prison to be followed by 5 years of supervised release.  Aguilar was convicted of these charges on April 15, 2013, after he pleaded guilty.

•Whiters, 39, of Atlanta, Georgia, was sentenced on July 23, 2013, to 17 years in prison to be followed by 5 years of supervised release.  Whiters was convicted of these charges on April 15, 2013, after he pleaded guilty.

•Vasquez, 24, of Atlanta, Georgia, was sentenced on August 30, 2012, to 15 years in prison to be followed by three years of supervised release.  Vasquez was convicted of these charges on June 7, 2012, after he pleaded guilty.

•Jones, 41, of Atlanta, Georgia, was sentenced on October 11, 2012, to 15 years in prison to be followed by five years of supervised release.  Jones was convicted of these charges on July 26, 2012, after he pleaded guilty.

•Townsend, 35, of Atlanta, Georgia, was sentenced on January 10, 2013, to 15 years in prison to be followed by five years of supervised release.  Townsend was convicted of these charges on October 18, 2012, after he pleaded guilty.

•Finsley, 43, of Atlanta, Georgia, was sentenced on October 11, 2012, to 15 years in prison to be followed by five years of supervised release.  Finsley was convicted of these charges on July 26, 2012, after he pleaded guilty.

•Beavers, 29, of Atlanta, Georgia, was sentenced on July 23, 2013, to 15 years in prison to be followed by 5 years of supervised release.  Beavers was convicted of these charges on April 18, 2013, after he pleaded guilty.

This case was investigated by the FBI Bartow-Cartersville Drug Task Force with assistance from the United States Marshals Service.

Assistant United States Attorneys William G. Traynor and Paul R. Jones 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 HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.

ROME, Ga. - Miles Lamar Gammage, a recently disbarred attorney, has been sentenced for defrauding more than 50 of his seriously injured worker’s compensation clients out of settlement funds they were owed.

 “This attorney violated the trust placed in him by his clients,” said United States Attorney Sally Quillian Yates.  “Instead of helping his clients receive the compensation that they were owed and needed for the treatment of their injuries, he pocketed the money, stealing from people who were already hurting.”

Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office stated: “While today’s sentencing concludes the Government’s case against Mr. Gammage, the enormous damage left behind will be felt by his former clients for quite some time.  It is our sincere hope that those many victims of Mr. Gammage’s greed will take some solace in the fact that he has been held accountable for his criminal actions.”

“Criminals such as Gammage, who steal from those looking for help after being seriously injured at work, can expect to be brought to justice,” said Vernon Keenan, Director of the Georgia Bureau of Investigations.

According to United States Attorney Yates, the charges and other information presented in court:  Gammage, 59, of Cedartown, Ga., was licensed to practice law in the state of Georgia from June 1979 through January 2012.  He owned and operated The Gammage Firm in Cedartown, where he specialized in workers’ compensation cases and represented people who were seriously injured on the job. From approximately January 2008 through January 2012, Gammage converted more than $1.3 million of his clients’ settlement funds to his own use. He used the stolen funds to pay his own expenses and to pay his law firm’s payroll and operating expenses. Gammage also settled claims on behalf of clients without authorization; failed to notify clients that he had received their settlement checks; forged clients’ names on settlement checks and deposited those checks into bank accounts that he controlled; commingled clients’ funds with his own funds; and refused to provide clients with a full and accurate accounting concerning the disposition of their settlement funds.

When clients asked why they had not received their settlement funds, Gammage blamed the delay on others. He also delayed disbursing any portion of the settlement funds to clients as long as possible. When clients insisted that they needed money to pay medical bills and purchase medication, Gammage tried to pacify them by giving them partial payments, which he referred to as “advances” and “interest-free loans.” By engaging in such tactics, Gammage lulled his clients into a false sense of security and delayed their complaints to law enforcement authorities.

On January 8, 2013, Gammage pleaded guilty to a Criminal Information charging him with mail fraud. United States District Judge Robert L. Vining sentenced Gammage to serve five years and ten months in federal prison.  He was also ordered to serve three years on supervised release following his prison term.  Judge Vining is reviewing the amount of restitution owed to the victims and will announce his decision at a later date.   

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

Assistant United States Attorney Russell Phillips prosecuted the case.

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

GAINESVILLE, Ga. - Celia Alchemy Savage pleaded guilty in federal district court to making and possessing two pipe bombs found at her residence that were not registered in the National Firearms Registration and Transfer Registry, as is required by federal law.
 
 “This defendant said she made and detonated pipe bombs as a hobby,” said United States Attorney Sally Quillian Yates. “Making bombs out of heavy metal pipe, explosive powder, and fuses is a serious crime, not a hobby, that carries significant penalties.”

 “The plea today is another reminder that ATF and our law enforcement partners will hold individuals accountable for any criminal behavior, especially that which threatens the safety of innocent civilians,” said ATF Special Agent in Charge Christopher Shaefer.

According to United States Attorney Yates, the charges and other information presented in court: Savage came to the attention of federal agents after a concerned citizen reported seeing what appeared to be explosive devices in Savage’s home. Federal agents applied for and received a search warrant to search Savage’s residence. When federal, state, and local agents executed the search warrant on May 30, 2012, they found two completed pipe bombs, firearms, small amounts of controlled substances, drug paraphernalia, and material to manufacture more explosive devices in a bedroom. Savage was present at her residence when the search warrant was executed. She admitted that she had previously manufactured approximately five to seven pipe bombs of various sizes at her residence. She described the bedroom where the pipe bombs, materials for making more explosive devices, drugs, and drug paraphernalia were found as her “lab.” She also stated that she knew that it was unlawful to manufacture explosive devices, but that she had a passion for it and considered manufacturing and detonating explosive devices to be her hobby. 

Savage, 24, of Cornelia, Ga., was indicted on June 26, 2012, on one count of making two unregistered pipe bombs, one count of possessing two unregistered pipe bombs, and one count of being a prohibited person in possession of firearms. Today Savage pleaded guilty to making and possessing the pipe bombs.  She could receive a maximum sentence of 20 years in prison and a fine of up to $500,000. In addition, she could be ordered to serve up to six years of supervised release after any term of imprisonment.

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. In the negotiated plea agreement filed in Court today the Government and the defendant agreed to jointly recommend a calculation of the Sentencing Guidelines that could result in an advisory Sentencing Guidelines range of 57-71 months of incarceration. However, Savage retains her right to advocate at her sentencing hearing for a sentence that is below the advisory Sentencing Guidelines range. 

Sentencing will be scheduled before United States District Judge Richard W. Story after a pre-sentence report is prepared.

This case was investigated by Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation.

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

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

Officer Awarded Contracts to Freight Shipper in Return for Cash and Plane Tickets

ATLANTA - Keith Glenn, a former Installation Transportation Officer for the Georgia Army National Guard, pleaded guilty to one count of accepting an illegal gratuity for accepting cash and other benefits from a private freight shipper to whom he awarded contracts to transport military equipment.

United States Attorney Sally Quillian Yates said, “This defendant was responsible for ensuring that contracts to move Georgia Army National Guard military equipment were awarded in compliance with federal rules and regulations.   He personally profited from his position by accepting cash and gifts from a freight shipper and will now be held accountable for breaking the law and the public trust.”

“We are fully committed to tirelessly pursuing all those who knowingly attempt to defraud the government or accept bribes with respect to military contracts, particularly while we at war,” said Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit. “Our commitment is to ensure taxpayer dollars are not wasted or stolen and we will continue to fully investigate those who think they are above the law. During the last 10 years alone, Army CID Special Agents have been instrumental in recovering and returning millions of dollars to the Treasury and the Army from fraudulent practices involving contractors.”

According to United States Attorney Yates, the charges and other information presented in court: In 2008, Glenn became the Installation Transportation Officer for the Georgia Army National Guard (the “Guard”) facility located on Confederate Avenue in Atlanta.  As the Installation Transportation Officer, Glenn was a federal employee working in the United States Property and Fiscal Office (“USPFO”).  The USPFO is the primary focal point for federal funds and property allotted to the Guard.  The Transportation Office of the USPFO is responsible for the award and oversight of all commercial transportation contracts (paid with federal funds) for the movement of Guard equipment and personnel.  Glenn’s responsibilities included supervising the Transportation Office’s day-to-day operations and awarding contracts to private freight carriers for Guard freight shipments.

In March 2008, soon after he began working in the USPFO Transportation Office, Glenn met an individual who owned and controlled multiple companies in the freight shipping or brokerage business.  Several months later, the USPFO Transportation Office began awarding business to that individual’s companies to ship Guard equipment and freight.  Glenn selected the individual’s companies and awarded them shipment contracts to move Guard equipment and freight. 

In making these selections, Glenn violated federal rules and regulations governing the selection of freight carriers and the process for awarding freight contracts.  Glenn accepted cash and other personal benefits, including plane tickets, from that individual for or because of the contracts he awarded to the individual’s companies.  On one occasion, the individual placed $5,000 in cash in Glenn’s car while meeting him at a local restaurant.  Shortly before this payment, Glenn awarded multiple shipping contracts to the individual’s companies.

On June 4, 2013, Glenn, 48, of Lilburn, Georgia, was charged in a Criminal Information with one count of accepting an illegal gratuity.  Today he pleaded guilty to the information and could receive a maximum sentence of two years in prison and a fine of up to $250,000.  In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.

Sentencing is scheduled for September 27, 2013, at 9:30 a.m. before United States District Judge William S. Duffey, Jr.

This case is being investigated by the United States Army Criminal Investigation Command.

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

ATLANTA - Glenn A. Cook has been sentenced to serve over ten years in federal prison on charges of conspiracy to possess and distribute cocaine, money laundering, and possession of a firearm during a drug offense.    

 “A four-month investigation of two Atlanta area cocaine suppliers led to the prosecution of numerous individuals in the distribution chain and stopped key players from continuing to sell cocaine throughout Georgia,” said United States Attorney Sally Quillian Yates.  “The combined effort of federal, state, and local law enforcement led to the removal of dangerous drugs and guns from our community.”

According to United States Attorney Yates, the charges and other information presented in court:  Cook is the last of five defendants to be sentenced in this case, which arose from an investigation of regional cocaine distributors in Georgia that took place from October 2010 through January 2011.  Cook and co-defendant Vincent Lamar Hall, known as “the Million Dollar man,” served as the two main sources of cocaine for another defendant, T’Michael Djuan Jones.  Together, Cook and Hall distributed a total of 676 kilograms of cocaine to Jones and others.  Jones in turn distributed cocaine to co-defendants Phillip La Shawn Massey and Anthony Gasque as well as others in the Macon and Brunswick areas.  

During the investigation, law enforcement used Title III wiretaps to disrupt a two-kilogram cocaine transaction on October 11, 2010, that was worth $60,000 to Jones and Massey.  Massey fled on foot from law enforcement, leaving behind the drugs and a gun.

On October 25, 2010, law enforcement also recovered four kilograms of cocaine that had been discarded by Gasque once he became aware the police were following him.  Once the four kilograms of cocaine were tossed, Jones and Massey came up with a plan to rob Cook near his residence to replace the lost cocaine.  Jones and Massey targeted Cook’s couriers, but the gun misfired and the couriers got away.  As Cook was unaware of this plan, Jones continued to order large quantities of cocaine from Cook, some of which were intended for Massey.
   
Cook and Hall each lived in lavish homes with surveillance cameras on their properties to detect any individuals coming onto the property.  Both men forfeited their personal residences, more than $50,000 in cash and bank funds, numerous high-end automobiles, including a Maserati and a fully-restored 1959 Thunderbird, two waverunners and an ATV, jewelry valued at more than $20,000, and assorted electronic equipment.

“This organization’s cocaine trafficking activities clearly fed many illicit drug users.  Because of the large volume of drugs involved, their sentences are appropriate and they will spend well-deserved time in prison,” said Harry S. Sommers, Special Agent in Charge of the DEA Atlanta Field Division.  “I commend our local law enforcement counterparts who played a crucial role in conducting this investigation.” 

“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 occurring in our neighborhoods,” stated Veronica Hyman-Pillot, Special Agent in Charge.  “We are proud to have contributed our financial skills in a united effort to thwart this organizations ability to launder money and commit crimes against our community.”

Cook, 41, of Atlanta, Ga., pleaded guilty on May 2, 2012, to conspiracy to possess at least 50 kilograms of cocaine, with the evidence demonstrating that he was responsible for approximately 646 kilograms.  Cook was sentenced to ten years and one month in prison to be followed by five years of supervised release, and 100 hours of community service.        

The other defendants previously sentenced in the case include:

• Vincent Lamar Hall, 42, of Lithonia, Ga., on October 11, 2012, received 12 years, 7 months in prison for conspiracy to possess at least 5 kilograms of cocaine, money laundering, and tax evasion.  Hall was responsible for at least 30 kilograms of cocaine and numerous guns were found during the search of his residence. 

• T’Michael Djuan Jones, 39, of Conyers, Ga., on August 6, 2012, received 12 years, 3 months in prison for possession of cocaine, conspiracy to possess at least 5 kilograms of cocaine, and possession of a firearm during a drug offense. 

• Phillip La Shawn Massey, 35, of Hampton, Ga., on December 10, 2012, received 10 years, 3 months in prison for conspiracy to possess at least 5 kilograms of cocaine and possession of a firearm during a drug offense.

• Anthony Gasque, 34, of Fairburn, Ga., on August 3, 2012, received 5 years, 3 months in prison for conspiracy to possess at least 5 kilograms of cocaine.

Each of these defendants also received 5 years of supervised release to follow their term in prison and was ordered to perform 100 hours of community service. 
              
This case was investigated by Special Agents of the Drug Enforcement Administration and Special Agents of the Internal Revenue Service with assistance from the Georgia Bureau of Investigation, the East Point Ga. Police Department, the Fulton County Sheriff’s Office, the Warren County Sheriff’s Office, and the Georgia State Patrol.

Assistant United States Attorney Cassandra Schansman, Susan Coppedge, and Michael J. Brown along with Thomas J. Jaworski of the Department of Justice, Tax Division, 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.

GAINESVILLE, Ga. – Amy B. Williams, 48, of Buford, Ga., has been indicted by a federal grand jury on charges arising out of a scheme to defraud First Coweta Bank.  

 “Bank fraud is a critical problem throughout the United States, but it has hit Georgia especially hard,” said United States Attorney Sally Quillian Yates.  “Georgia leads the nation in bank failures since 2008, with 78 banks failing – including First Coweta Bank, the bank this defendant is charged with defrauding.”

According to United States Attorney Yates, the indictment, and other information presented in court: Williams was the sole owner of United International Mortgage (UIM) Corporation in Buford, Ga., and was in the business of arranging construction loans for residential builders.

In April 2007, UIM closed three construction loans for one of its customers, Mainstreet Builders, Inc.  The loans were intended to finance the cost of constructing three new houses in Suwanee, Ga.  The loans, which totaled more than $1.7 million, were funded by First Coweta Bank.

Williams directed an unindicted coconspirator to forge signatures on loan documents and caused those documents to be faxed to First Coweta Bank.  The bank then wire transferred the loan proceeds to an account controlled by Williams.  Williams was required to hold the money in trust for the builder and to disburse the money to the builder on a draw basis, as work on the three houses progressed.  Instead, she used more than $1.1 million of this money to pay off her personal debt at another bank, and wire transferred $60,000 into her personal checking account.  After converting First Coweta Bank’s money to her own use, Williams attempted to cover up her crime by emailing false documents and misleading photos to the bank.

Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “The actions of Ms. Williams, as alleged in the indictment, directly led to the failure of the First Coweta Bank and, as such, clearly demonstrates the serious nature and impact of those actions.  The FBI will continue to coordinate its bank fraud investigations with its various law enforcement partners in an effort to effectively identify, investigate, and present for prosecution those individuals who do so much harm to the banking industry.”

Jason T. Moran, Special Agent in Charge, Federal Deposit Insurance Corporation- Office of Inspector General Southeast Region, said: “The Federal Deposit Insurance Corporation is committed to its partnerships with others in the law enforcement community as we address mortgage fraud and bank fraud cases throughout the country.  The American people need to be assured that their government is working to ensure integrity in the financial services and housing industries and that those involved in criminal activities that undermine that integrity will be held accountable.”

Williams was arraigned today before United States Magistrate Judge J. Clay Fuller in Gainesville, Ga.

The indictment charges one count of conspiracy and six counts of bank fraud.  Each count carries a maximum sentence of 30 years in prison and a fine of up to $1,000,000.  In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.

Members of the public are reminded that the indictment 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.

This case is being investigated by Special Agents of the FBI and the FDIC Office of Inspector General.

Assistant United States Attorney Russell Phillips is prosecuting the case.

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

Gang Wreaked Havoc in Gwinnett and DeKalb Counties

ATLANTA – After a four-week trial, a federal jury has convicted Miguel Alvarado-Linares, Ernesto Escobar, Dimas Alfaro-Granados, and Jairo Reyna-Ozuna, for committing multiple murders, attempted murders, armed robberies, and firearms offenses in Gwinnett and DeKalb counties.

“The defendants were the leaders of MS-13, an international gang known for its gratuitous murders,” said United States Attorney Sally Quillian Yates.  “They spread fear throughout the community by killing suspected rival gang members and others who cross their path.  We will continue to work with our law enforcement partners to protect our streets from turning into battlegrounds.”  

“These four MS-13 members committed a host of brutal crimes that devastated countless lives in Northern Georgia,” said Acting Assistant Attorney General Raman.  “As a result of the tireless work by the prosecutors and investigators who tackled this case, the defendants will be removed from the streets they have terrorized.”

“The defendants in this case indiscriminately brought murderous violence against rival gang members and innocent civilians alike,” said Brock D. Nicholson, Special Agent in Charge of HSI Atlanta. “HSI is proud to continue to partner with the FBI and the U.S. Attorney’s Office to target violent transnational gang members who threaten the safety of Atlanta communities.”

Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, said: “Removing these violent gang members from the streets of metro Atlanta not only makes for a safer community but further weakens the Southeastern U.S. roots of this international criminal enterprise known as MS-13.  The FBI will continue to work with its various law enforcement partners in targeting this group, and others like them, in a unified and effective manner.”

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

• Alvarado-Linares and Alfaro-Granados, along with another gang member, killed Lal Ko in October 2006.  Ko was a fellow MS-13 member, but Alvarado-Linares, one of the gang leaders, thought that Ko was cooperating with police and ordered his murder.
• In December 2006, when another MS-13 gang member wanted to quit the gang, Alvarado-Linares and Alfaro-Granados ordered him to kill a rival gang member as a condition of leaving MS-13.  On Christmas Eve 2006, that gang member, following orders, shot at a car on Highway 316 that he believed contained rival gang members.  The passenger, Angel Gonzalez, was murdered.  He was 20 years old.
• On New Year’s Eve 2006, Alvarado-Linares was at an apartment complex where he exchanged gang hand signs and insults with two members of the rival gang SUR-13.  Alvarado-Linares pulled out a gun and shot the men.
• In August 2007, Escobar got into a scuffle with two teenagers at a Shell gas station in Gwinnett County.  Escobar reported the incident to Reyna-Ozuna, who was the gang leader at the time.  Reyna-Ozuna gave Escobar a .45 caliber semi-automatic handgun to retaliate.  Escobar went back to the Shell station and shot one of the teenagers as he was painting lines in the parking lot.  The victim, David Hernandez, was only 16 years old.
• In October 2007, Alvarado-Linares was in Gwinnett County and came across a suspected 18th Street member.  Alvarado fired a shotgun and killed Pablo Archila-Baires.  Archila-Baires was only 15 years old.

The sentencing for Miguel Alvarado-Linares, a/k/a Joker, 24, of Norcross, Ga., Ernesto Escobar, a/k/a Pink Panther, 30, of Norcross, Ga., Dimas Alfaro-Granados, a/k/a Toro, 30, of Duluth, Ga., and Jairo Reyna-Ozuna, a/k/a Flaco, 28, of Norcross, Ga., will be scheduled at a later date before United States District Judge Richard W. Story.  Alvarado-Linares, Escobar and Alfaro-Granados were convicted of RICO conspiracy involving murder, which carries a sentence up to and including life.  Reyna-Ozuna was convicted of RICO conspiracy, which carries a sentence of up to 20 years.  Alvarado-Linares, Escobar and Alfaro-Granados were also convicted of committing Violent Crime in Aid of Racketeering, which carries a mandatory sentence of life in prison.  All of the defendants were convicted of firearms offenses, which carry a sentence of up to and including life.  Parole has been abolished in the federal system.

This case is being investigated by Special Agents from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Federal Bureau of Investigation, with assistance from the U.S. Marshals Service, Gwinnett County Police Department, DeKalb County Police Department, Norcross Police Department, Chamblee Police Department, and Gwinnett County Sheriff’s Office.

Assistant United States Attorneys Paul R. Jones and Kim S. Dammers and U.S. Department of Justice, Organized Crime and Gang Section, Trial Attorney Joseph K. Wheatley 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/.

Defendant Possessed Thousands of Sexually Explicit Images of Children

ATLANTA –Thomas Joseph Schloeder, who was the co-owner of the Atlanta business Brushstrokes, has been sentenced for receiving thousands of images and videos of child pornography on his home computer. 

“Collecting images and videos showing the sexual abuse of children is a despicable act,” said United States Attorney Sally Quillian Yates.  “Our continued work to prosecute and punish individuals who possess, receive and distribute child pornography should serve notice to those who may consider engaging in this behavior that it will not be tolerated.” 

“There are few crimes more heinous than the sexual abuse of a child,” said Brock D. Nicholson, special agent in charge of HSI Atlanta. “Protecting our children from those who exploit them is a top priority for HSI. We will continue to work closely with our partners at the DeKalb County Police Department to investigate these crimes and bring child predators to justice.”

According to United States Attorney Yates, the criminal indictment, and information presented in court:  In November 2012,  a detective with the police department of DeKalb County, Ga., conducted an investigation of individuals using peer-to-peer technology to download child pornography and make it available to others.  During that investigation, he determined that a computer located at Thomas Schloeder’s home had made available over 100 images of child pornography over the preceding months.  On November 15, 2012, law enforcement officers executed a search warrant at his home and seized several computers and electronic storage devices.  A subsequent forensic examination of those items revealed several thousand images and videos of child pornography, some of which contained depictions of minors being raped by adults and sex acts between minors and animals.

Schloeder, 47, of Brookhaven, Ga., was sentenced today to 8 years, 1 month in federal prison by United States District Judge Orinda D. Evans to be followed by a lifetime of supervised release.  He was also ordered to pay a fine of $75,000.  The defendant will be required to register as a sex offender when he is released from prison.

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

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 – Kevin Hickey, formerly the Director of Parish Outreach for Life Teen International in Atlanta, Ga., has been arraigned on federal charges of distribution and possession of child pornography. 

“This defendant collected and distributed highly graphic images portraying the sexual exploitation and abuse of young children all while being entrusted to protect, counsel, and serve children,” said United States Attorney Sally Quillian Yates. 

“We expect adults working in positions of trust to serve as role models for our children and safeguard their welfare,” said Brock D. Nicholson, special agent in charge for HSI Atlanta. “HSI is particularly vigorous in pursuing these kinds of cases because our experience has shown that, in many instances, those who collect and distribute child pornography are also hands-on offenders.”

According to United States Attorney Yates, the criminal complaint, and information presented in court:  Hickey was identified as an individual with a sexual interest in children and who collects and distributes 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 Norcross, Ga., was indicted by a federal grand jury on July 1, 2013.  Hickey has been detained.  Distribution of child pornography carries a mandatory minimum sentence of five years and a statutory maximum of twenty years.  Possession of child pornography carries a statutory maximum sentence of ten years.  A conviction on either offense carries a term of supervised release from five years to life and a requirement that the defendant register as a sex offender. 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 U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.

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.

Defendant Worked as a Nurse for the U.S. Postal Service

ATLANTA - Fertina Brown, a former mail carrier, pleaded guilty to one count of making a false document by forging a license to work as a nurse with the United States Postal Service.         

“Brown put people’s health and safety at risk – simply to earn a better wage,” said United States Attorney Sally Quillian Yates. “By presenting a forged nursing license, she defrauded the Postal Service and will now be held accountable for her greed.”

“Fertina Brown reflects just a small percentage of employees who failed to uphold the trust and integrity placed in them.  The U.S. Postal Service, Office of Inspector General takes these cases very serious and investigates them to the fullest extent of the law,” said Paul Bowman, Area Special Agent in Charge of the United States Postal Service, Office of Inspector General.

According to United States Attorney Yates, the charges and other information presented in court:  In 2007, Brown was working for the United States Postal Service (USPS) as a mail carrier, when she applied for and ultimately obtained a nursing position in the Postal Service’s North Metro Distribution Center.  In January 2011, the USPS requested a copy of Brown’s most recent nursing license because the previously-provided copy had an expiration date of January 31, 2011. On February 2, 2011, Brown presented the USPS with a State of Georgia nursing license that turned out to be forged.  Based on an investigation, the USPS determined that Brown’s nursing register number belonged to an individual residing in Texas who was on active duty with the U.S. military.  As a result of the investigation, Brown resigned from the Postal Service in June 2011.  In total, Brown earned over $100,000 in additional income (versus what she would have made as a mail carrier).

On May 7, 2013, Brown, 44, of Henry County, Ga., was charged in a Criminal Information with one count of making a false document.  Today she pleaded guilty to the information and could receive a maximum sentence of 5 years in prison and a fine of up to $250,000.  In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders. 

Sentencing is scheduled for September 13, 2013, at 9:30 a.m. before United States District Judge William S. Duffey, Jr.

This case is being investigated by Agents of the United States Postal Service, Office of Inspector General.

Assistant United States Attorney Jeffrey W. Davis is prosecuting the case.

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

Firearms, Drugs, Police Gear, Stun Guns, and Counterfeit Currency Recovered

ATLANTA – Ten members of a drug ring operating out of Cobb County were sentenced to prison on various federal narcotics, firearms, and immigration-related charges. 

“Multiple agencies working effectively together dismantled a drug trafficking organization and removed their poisonous drugs, dangerous weapons, and counterfeit money from our streets,” said United States Attorney Sally Quillian Yates.   “Now, these defendants have traded their contraband for a combined 141 years, 4 months in federal prison.”  

“Drug-related assaults, often times in the form of kidnappings, are one of the many acts of violence committed by drug traffickers seeking to carry out their ruthless mission,” said Harry S. Sommers, Special Agent in Charge of the DEA Atlanta Field Division.  The DEA and its law enforcement counterparts are committed to protecting our citizens from drug violence and the scourge of drug abuse. These individuals will now have to pay the consequences of their actions by spending well-deserved time in prison.”

“The GBI is committed to working with our federal law enforcement counterparts to identify and bring to justice those involved in drug trafficking,” said Vernon Keenan, GBI Director.

“ATF’s involvement in securing these sentences is a prime example of the successful use of federal laws to confront, engage and eliminate criminal activity.  Criminals must understand that there are serious repercussions for illegal trafficking of narcotics and illegal possession of firearms and that law enforcement will contribute all necessary time and effort to ensure criminals are brought to justice,” said ATF Special Agent in Charge Christopher Shaefer.

“The prison time received by these defendants should serve as a strong warning that tough punishment awaits those who embark on a similar criminal path,” stated Veronica Hyman-Pillot, Special Agent in Charge, IRS-Criminal Investigation. “These sentences are the result of hard work and a true team effort.” 

“This case illustrates not just the significance of partnerships with state and federal law enforcement agencies, but it also illustrates how criminals still continue to use counterfeiting as a means to fund their criminal activity.  The Secret Service and our law enforcement partners will continue to use aggressive and innovative approaches to investigate and arrest these types of criminals,” 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:  While investigating a drug trafficking organization operating in metro-Atlanta, agents learned on February 2, 2012, that Nemias Cintora-Gonzalez had devised a plan to assault a fellow drug dealer because of an outstanding $2,700 drug debt.  On that date, Nemias Cintora-Gonzalez was overheard speaking to another drug associate about his plans to have four others with him the next morning when he inflicted physical injury on the fellow drug dealer for the purpose of motivating him to repay the debt.

A few hours later, while conducting surveillance of Neimas Cintora-Gonzalez’s apartment located in Smyrna, agents observed Edgar Cintora-Gonzalez transferring two large bags from the trunk of a white Honda Accord, registered to an alias of Nemias Cintora-Gonzalez, into the trunk of a white Suzuki Verona, registered to the wife of Israel Edgardo Revera-Pacheco.  At approximately 10:45 p.m. that same evening, agents executed a federal search warrant at the apartment, encountering and arresting Jorge Armando-Reyes, Nemias Cintora-Gonzalez, Edgar Cintora-Gonzalez, Victor Hugo Morales-Avila, Israel Edgardo Revera-Pacheco, and Brenda Perez. 

During the search of the apartment and the Suzuki Verona, agents seized:

•thirteen handguns (including several semi-automatic firearms)
•four assault rifles
•numerous magazines and ammunition for the weapons
•methamphetamine
•cocaine
•two stun guns
•two large crowbars
•one large bolt cutter
•police gear
•a black ski mask, black turtle neck shirt, and black gloves
•over $11,000 in counterfeit U.S. Currency
•drug packaging materials
•zip ties
•two bulletproof vests

During a search of cellular telephones recovered in the apartment, agents found photographs of Armando-Reyes and Morales-Avila posing with assault weapons and police gear. 

On February 23, 2012, federal agents arrested Jose Vazquez Estrada at his residence in Marietta.  Estrada was a significant drug customer of Nemias Cintora-Gonzalez.  During a consent search of Estrada’s apartment, agents located over 909 grams of methamphetamine on dinner plates in the kitchen. 

Agents arrested Pedro Gutierrez Valdiviez on April 18, 2012, who was Estrada’s drug partner, after he attempted to sell six ounces of methamphetamine to an undercover agent in a Marietta Wal-Mart parking lot.

Maria Yobal Perez was arrested on May 16, 2012, at her Marietta residence.  Yobal Perez was overheard conducting methamphetamine transactions on behalf of her husband, Alvaro Carraza Echeverria, who was serving a 30 year sentence in a Georgia state correctional facility for trafficking in methamphetamine.  Echeverria was overheard brokering methamphetamine deals from the correctional facility using an illegally smuggled cellular telephone. 

After being indicted, eight defendants pleaded guilty, and Nemias Cintora-Gonzalez and Jorge Armando-Reyes were convicted after a jury trial. All defendants have now been sentenced by United States District Judge Orinda Evans, as described more fully below:

•Nemias Cintora-Gonzalez, 30, of Smyrna, Ga., was sentenced to 29 years, 4 months in prison to be followed by 5 years of supervised release.  Cintora-Gonzalez was convicted on February 22, 2013, following a federal jury trial, of conspiracy to possess with the intent to distribute and possession with the intent to distribute methamphetamine and cocaine; possession of a firearm in furtherance of a drug trafficking crime; possession of a firearm by an alien unlawfully and illegally in the United States; and possession of counterfeit federal reserve notes with the intent to defraud.

•Jorge Armando-Reyes, 31, of Smyrna, Ga., was sentenced to 17 years, 6 months in prison to be followed by 5 years of supervised release.  Armando-Reyes was convicted on February 22, 2013, following a federal jury trial, of conspiracy to possess with the intent to distribute and possession with the intent to distribute methamphetamine and cocaine; possession of a firearm in furtherance of a drug trafficking crime; possession of a firearm by an alien unlawfully and illegally in the United States; and possession of counterfeit federal reserve notes with the intent to defraud.

•Alvaro Carraza Echeverria, 50, of Marietta, Ga., was sentenced to 21 years in prison to be followed by 5 years of supervised release.   Echeverria pleaded guilty on October 23, 2012, to conspiracy to possess with the intent to distribute methamphetamine.

•Jose Vazquez Estrada, 35, of Marietta, Ga., was sentenced to 15 years, 7 months in prison to be followed by 5 years of supervised release.  Estrada pleaded guilty on May 25, 2012, to conspiracy to possess with the intent to distribute methamphetamine and cocaine and illegal re-entry by a removed alien. 

•Pedro Gutierrez Valdiviez, 48, of Marietta, Ga., was sentenced to 18 years, 9 months in prison to be followed by 5 years of supervised release.  Valdiviez pleaded guilty on July 2, 2012, to conspiracy to possess with the intent to distribute methamphetamine.

•Edgar Cintora-Gonzalez, 26, of Smyrna, Ga., was sentenced to 11 years, 8 months in prison to be followed by 3 years of supervised release.  Edgar Cintora-Gonzalez pleaded guilty on May 29, 2012, to possession with the intent to distribute methamphetamine and cocaine; possession of a firearm in furtherance of a drug trafficking crime; and possession of a firearm by an alien unlawfully and illegally in the United States. 

•Israel Edgardo Revera-Pacheco, 29, of Smyrna, Ga., was sentenced to 10 years in prison to be followed by 3 years of supervised release.  Revera-Pacheco pleaded guilty on May 4, 2012, to possession with the intent to distribute methamphetamine and cocaine; possession of a firearm in furtherance of a drug trafficking crime; and possession of a firearm by an alien unlawfully and illegally in the United States.

•Victor Hugo Morales-Avila, 35, of Smyrna, Ga., was sentenced to 9 years, 4 months in prison to be followed by 3 years of supervised release.  Morales-Avila pleaded guilty on February 19, 2013, to possession with the intent to distribute methamphetamine and cocaine; possession of a firearm in furtherance of a drug trafficking crime; possession of a firearm by an alien unlawfully and illegally in the United States; and illegal re-entry by a removed alien. 

•Maria Yobal Perez, 51, of Marietta, Ga., was sentenced to 8 years, 1 month in prison to be followed by 5 years of supervised release.  Yobal Perez pleaded guilty on August 30, 2012, to conspiracy to possess with the intent to distribute methamphetamine.

•Brenda Perez, 31, of Marietta, Ga., was sentenced to 1 year probation.  Perez pleaded guilty on May 4, 2012, to misprision of a felony (concealing and failing to report her co-defendants’ illegal drug activities.)

These cases were investigated by Special Agents and Task Force Officers of the Drug Enforcement Administration, Georgia Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, United States Secret Service, and Internal Revenue Service.

Assistant United States Attorneys Michael Herskowitz and J. Elizabeth McBath prosecuted the cases.

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

ATLANTA - Guy Mitchell has pleaded guilty to a charge of conspiring to commit bank fraud and to pay bribes to an officer of a financial institution.

 “Mitchell used millions of improperly obtained loan proceeds to fund a lavish lifestyle,” said United States Attorney Sally Quillian Yates.  “His actions corrupted the lending process and jeopardized the safety and soundness of Integrity Bank, which failed and was taken over by the FDIC.  Today, Mitchell’s plea of guilty brings this bank fraud investigation and prosecution to a just conclusion.”

 “The Federal Deposit Insurance Corporation Office of Inspector General is pleased to join our law enforcement colleagues in announcing Mr. Mitchell’s guilty plea,” said Jason Moran, Special Agent in Charge, FDIC Atlanta Region.   “When major borrowers conspire with bank insiders to engage in fraudulent activities that contribute to institution failures, all parties must be brought to justice.  The FDIC OIG is committed to ensuring the safety and soundness of banks throughout the country and protecting the Deposit Insurance Fund against such criminal behavior.”  

According to United States Attorney Yates, the charges and other information presented in court:  Mitchell borrowed more than $40 million from the now-failed Integrity Bank in 2005 and 2006, allegedly to finance his interests in various hotels around the country.  One of these loans was to acquire and renovate the Casa Madrona Hotel, a luxury property overlooking the water in Sausalito, California. During that time, Mitchell was bribing Douglas Ballard, a former loan officer at Integrity, with hundreds of thousands of dollars. Although Mitchell did use some of the money he received from Integrity for hotel purposes, he never performed any renovations on the Casa Madrona. Instead, he used loan draws to buy a private island in the Bahamas, to travel by private jet, and to pay for Miami Heat tickets, fancy jewelry, expensive cars, and a mansion in Coconut Grove.  Mitchell, the bank’s largest borrower, eventually defaulted on his loans, contributing to Integrity Bank’s failure.

Douglas Ballard previously pleaded guilty to conspiracy and tax evasion. Additionally, Todd Foster, another Integrity employee, pleaded guilty to securities fraud.

Mitchell, 53, of Miami, Fl., could receive a maximum sentence of 5 years in prison and a fine of up to $250,000, or twice the greater of the gain or loss.  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 October 10, 2013, at 10:00 a.m. before United States District Judge Julie E. Carnes. 

This case is being investigated by the Federal Bureau of Investigation and the Federal Deposit Insurance Corporation, Office of Inspector General.

Assistant United States Attorneys Douglas W. Gilfillan and Christopher C. Bly are prosecuting the case.

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

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

ATLANTA - The United States Attorney’s Office for the Northern District of Georgia has reached a settlement agreement with Midtown Neurology, P.C. to resolve an investigation into allegations that it violated Title III of the Americans with Disabilities Act (ADA) by failing to ensure effective communication with individuals who are deaf and hard of hearing.

An investigation was initiated by a complaint filed with the United States alleging that on at least three occasions Midtown Neurology failed to provide appropriate auxiliary aids and services when necessary to ensure effective communication.  The complainant (“V.M.”) is deaf and uses American Sign Language as her primary means of communication.  On three separate visits to Midtown Neurology, V.M. alleged Midtown Neurology failed to provide a qualified sign language interpreter when necessary to ensure effective communication.  During one of the visits to Midtown Neurology, V.M.  alleged she underwent an elective medical procedure which was very painful.  Because V.M. did not have effective communication before and during this visit, she was scared and did not understand what was happening.  According to V.M., she cried, yelled, and tried to ask the doctor to stop the procedure.  Because the doctor did not understand her request, the doctor continued the procedure despite V.M’s request.  Midtown Neurology denied these allegations but agreed to cooperate with the United States Attorney’s Office to resolve the complaint. 

“Every person should have the ability to fully participate in their own health care decisions as well as the decisions that impact their loved ones,” said United States Attorney Sally Quillian Yates.  “Our office will continue to devote resources to eradicate barriers to health care for persons with disabilities.”

“The Department of Justice takes these civil rights violations seriously,” said Eve L. Hill, Senior Counselor to the Assistant Attorney General for Civil Rights.  The U.S. Attorneys are key partners in stopping discrimination against individuals with disabilities in the critical area of health care and we are very pleased to be working with them.” 

Under the settlement agreement, Midtown Neurology agreed to ensure that it provides effective communication to patients who are deaf and hard of hearing in the future.  In the future, at the time a person who is deaf or hard of hearing makes an appointment, Midtown Neurology will consult with the person who is deaf to determine which aids and services are appropriate.  Among other things, Midtown Neurology agreed to hire an outside group to conduct mandatory ADA training for all its employees and to provide reports to the United States Attorney’s Office regarding its compliance with the settlement agreement.  Midtown Neurology also agreed to pay $20,000 to the complainant and a civil penalty in the amount of $2,000 to the United States.

The ADA prohibits discrimination against individuals with disabilities by health care professionals.  Under the ADA, health care providers are required to provide effective communication to individuals who are deaf and hard of hearing.  When complex, lengthy communication is involved, the ADA generally requires health care professionals to provide qualified sign language interpreters for the person who is deaf or hard of hearing.

This agreement is part of the Department of Justice’s Barrier-Free Health Care Initiative, which is a partnership of the Civil Rights Division and U.S. Attorneys’ offices across the nation, to target enforcement efforts on a critical area for individuals with disabilities.  The initiative, launched on the 22nd anniversary of the ADA in July 2012, includes the participation of more than 40 U.S. Attorneys’ offices, including the U.S. Attorney’s Office for the Northern District of Georgia.  Information about the initiative can be found at www.ada.gov/usao-agreements.htm.

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

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

Midtown Neurology Settlement Agreement

ATLANTA – Justin Cody, also known as “Decatur Slim,” was arraigned on federal charges of conspiracy to commit theft of public funds, theft of public funds, and aggravated identity theft.
                                                                       
“Fraud schemes in which criminals file fraudulent tax returns and obtain fraudulent refunds using the stolen identities of innocent persons have become all too common in recent years,” said United States Attorney Sally Quillian Yates. “These defendants are charged with engaging in criminal activity that not only harmed the U.S. Treasury, but that also undermined financial security of the individuals whose identities were stolen.”

“These unscrupulous defendants thought they had figured out a clever scheme to thwart the IRS and steal from American taxpayers,” said Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation.  “IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority and we will vigorously pursue those who undermine the integrity of the U.S. tax system.”

“The indictment of Mr. Cody and Ms. Wilmore further illustrates the FBI’s efforts and commitment toward not only protecting public funds but protecting the public from those who would prey on them,” stated Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office.  “The FBI will continue to work with its various law enforcement partners in combating identity theft and tax refund fraud.”

 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, also known as “Decatur Slim,” and 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 is commonly called stolen identity refund fraud. Cody used the electronic filing identification numbers of at least two tax preparer businesses, as well as the stolen identification information of hundreds of victims, along with fake wage and withholding information, to prepare the fraudulent tax returns which claimed 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.  

Cody, 32, of Decatur, Ga., and Wilmore, 24, of Atlanta, Ga. were indicted by a federal grand jury on June 25, 2013.  Cody has been detained.  Wilmore’s arraignment date is pending.  The conspiracy to commit theft of public funds carries a maximum sentence of five years in prison.  Each substantive count of theft of public funds carries a maximum sentence of ten years in prison. Each of the aggravated identity theft charges carry a mandatory minimum two-year consecutive sentence to any other sentence imposed. Each count also carries a fine of up to $250,000. The United States is also seeking the forfeiture of all funds derived from or involved in this scheme.

The public is reminded that criminal charges are 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.

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

Assistant United States Attorney Karlyn J. Hunter is prosecuting the case.

For further information please contact the U.S. Attorney’s 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.

 Defendant Filed False Tax Returns Claiming Over $1.2 Million in Bogus Refunds

ATLANTA – Eugene Gibbons was sentenced today to serve over three years in federal prison for filing false tax returns that claimed over $1.2 million in fraudulent refunds.

 “This defendant’s persistence in filing fraudulent tax returns despite knowing the consequences does not compare to the persistence of law enforcement in seeing through his lies and requiring him to face justice for his fraud,” said United States Attorney Sally Quillian Yates.

“At the IRS, protecting taxpayer money is a matter we take extremely serious,” stated Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation.   “An integral part of the agency’s mission involves detecting and catching fraudulent refund claims.  We identified and investigated the filing of false tax returns submitted by Eugene Gibbons, and as a result of his actions, he will serve time in jail.”

According to United States Attorney Yates, the charges and other information presented in court:  Gibbons prepared fraudulent federal income tax returns at a tax preparation business named C&M Tax Service from 2002 through 2009.  On the tax returns, Gibbons claimed fraudulent deductions, expenses, and credits, which resulted in his clients receiving fraudulent refunds.  Gibbons then received monetary fees from those clients who he helped obtain fraudulent refunds.  In total, Gibbons prepared tax returns claiming over $1.2 million in false and fraudulent refunds. 

Gibbons admitted that he started filing fraudulent tax returns shortly after he was released from prison where he was serving a sentence for a previous conviction for filing false federal tax returns.

Gibbons, 65, of Atlanta, Ga., was sentenced today by United States District Judge Willis B. Hunt, Jr. to three years, six months in prison to be followed by two years of supervised release.  He was also ordered to pay $1,286,486.50 in restitution to the United States Treasury.  Gibbons pleaded guilty on July 31, 2012, to two counts of aiding and abetting in the preparation of false tax returns.             

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

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 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.

Physician Used Purported Charitable Entity He Controlled to Offer Illegal Inducements to Medicare Patients and Evade Income Taxes

ATLANTA - After a two-week trial, a federal jury has convicted Lawrence Eppelbaum, 54, of Roswell, Georgia on health care fraud, tax fraud and money laundering in relation to a scheme in which he illegally induced patients from all over the country to be treated at his medical clinic in Atlanta by providing free travel accommodations through a purported charitable entity that he controlled.

United States Attorney Sally Quillian Yates said, “In addition to the Hippocratic oath, Medicare doctors take a special oath that they will not interfere with a patient’s ability to choose a doctor based on medical needs alone.  This defendant violated that oath in favor of personal greed.  As a result, he has done harm to his future rights and liberties.”

 “Eppelbaum thought his clever scheme was undetectable, but was outwitted by my investigators and other law enforcement officers,” said Derrick L. Jackson, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services Atlanta Region.  “Criminals defrauding government health programs can expect to be brought to justice regardless of how intricate their plots.”

 “Abusing the federally funded Medicare system in such a manner is something that cannot and will not be tolerated,” stated Mark F. Giuliano, Special Agent in Charge, FBI Atlanta.  “With today’s verdict, a jury has clearly indicated that they will not tolerate these abuses and have held the defendant, an Atlanta doctor, accountable for his greed fueled criminal acts.  The FBI urges anyone with information regarding Health Care Fraud contact the FBI Atlanta Field Office at (404) 679-9000.”

 “Today’s verdict clearly illustrates that individuals who engage in these types of illegal activities will be held accountable for their actions,” stated Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation.  “Dr. Eppelbaum clearly took advantage of his professional standing in the community as well as the individuals who respected and revered him. Eppelbaum manipulated the Medicare system and received undeserved tax benefits which resulted in substantial unreported personal income.”

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 owns 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 was charged with 27 counts of healthcare fraud, tax fraud and money laundering. The jury found him guilty of all 27 counts.  The health care charges each carry a maximum sentence of 10 years or 5 years in prison and a fine of up to $250,000.  The tax charges each carry a maximum sentence of 5 years or 3 years in prison and a fine of up to $250,000.  The money laundering charges each carry a maximum sentence of 20 years in prison and a fine of up to $500,000.  In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding, but provide appropriate sentencing ranges for most offenders.

The sentencing will be scheduled at a later date before United States District Judge Amy Totenberg.

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

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

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

NEWNAN, Ga. – Arthur W. Singleton has been sentenced to two years in prison for fraudulently obtaining several government construction contracts reserved for veterans with service-related disabilities.

“Driven by greed, Mr. Singleton took advantage of a service-disabled veteran of the Vietnam War to gain over a million of dollars in federal contracts,” said United States Attorney Sally Quillian Yates. “The defendant’s fraud deprived genuine disabled veteran-owned businesses of the chance to obtain these federal contracts.”

“The United States Department of Agriculture (USDA), Office of Inspector General (OIG), remains diligent in investigating matters such as these that defraud both the department and the taxpayer,” said Karen Citizen-Wilcox, Special Agent-in-Charge, USDA-OIG.

“Aggressive investigative efforts through effective partnerships among several law enforcement agencies were key in bringing this defendant to justice,” said Special Agent in Charge John F. Khin, Southeast Field Office, Defense Criminal Investigative Service.  “This sentencing should serve as a deterrent to others who intend to take advantage of disabled military veterans and defraud the Federal Government.”

“These contracts are supposed to go to genuine service-disabled veteran-owned small businesses,” said Inspector General Peggy E. Gustafson of the Small Business Administration.  “Federal contracts should never be awarded to persons who commit fraud to claim eligibility for contracts set-aside for our nation’s heroes.  I want to thank the U.S. Attorney’s Office and our law enforcement partners for their commitment to seek justice on behalf of the American taxpayer.”

“The Department of Veterans Affairs Office of Inspector General vigorously investigates individuals who fraudulently obtain non-competitive contracts specifically set aside for veterans with service-connected disabilities,” stated Special Agent in Charge Quentin G. Aucoin.   

According to United States Attorney Yates, the charges and other information presented in court: Singleton owned a construction firm named “Singleton Enterprises” and had over 30 years of experience in the construction industry.  In 2007, Singleton approached a Vietnam veteran (who was bedridden from surgeries related to his combat injuries) and advocated creating a business that would exploit the veteran’s disabled status to obtain federal government contracts that were reserved exclusively for companies owned and run by service-disabled veterans. When the veteran agreed to the scheme, Singleton formed two companies using the veteran’s name.  

From September 2007 to September 2008, Singleton entered into contracts with the Department of Veterans Affairs, the Department of Agriculture, the United States Coast Guard, and the United States Army Corps of Engineers to perform construction work around the country.  Singleton used the veteran’s status to bid on these contracts, knowing that he was ineligible for the contracts – given that the veteran performed no work for either company, did not have an ownership stake, and did not control the management or daily operations of either business.  In total, Singleton received over $1.5 million dollars from the fraudulently-obtained contracts.

Singleton, 63, of Coweta County, Ga., was sentenced to two years in prison to be followed by two years of supervised release, and ordered to pay restitution in the amount of $181,000.  On April 15, 2013, Singleton pleaded guilty to one count of making false documents.

This case was investigated by Special Agents of the Small Business Administration, Office of Inspector General - Investigations; the United States Department of Defense, Defense Criminal Investigative Service; the United States Department of Agriculture, Office of Inspector General; the United States Department of Veterans Affairs, Office of Inspector General; and the United States Department of Homeland Security, Office of the Inspector General.

Assistant United States Attorneys Jeffrey W. Davis, Glenn Baker, and Shanya Dingle prosecuted the case.

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

NEWNAN, Ga. – Randolph Wayne Hill has pleaded guilty to charges of wire fraud and money laundering arising out of various fraud schemes he operated over the Internet involving the supply of chemicals used in farming and other industries.

“This defendant used the Internet to steal hundreds of thousands of dollars from small businesses both here in Georgia and abroad,” said United States Attorney Sally Quillian Yates.  “As today’s conviction demonstrates, it is a priority of this office to detect and aggressively prosecute fraudsters who use the Internet to target victims in our district and elsewhere.”

According to United States Attorney Yates, the charges and other information presented in court:  In March and April 2008, Hill falsely advertised on the Internet through his company, Hill Resources, LLC, that he was able to deliver multiple tons of various chemicals to customers throughout the world.  On or about March 15, 2008, Hill misrepresented that he was ready to ship over 120 tons of a fertilizer chemical from the United States to a collective of farmers in Suriname, even though he had no such supplier of the chemical in the United States.  In reliance on Hill’s promise, the individual acting on behalf of the farmers paid Hill over $60,000. 

On or about April 15, 2008, Hill misrepresented that he would supply a company operating in Cartersville, Ga., with over 160 tons of a chemical used in fireproofing fabrics, even though he had no such supplier of the chemical.  In reliance on Hill’s promise, the company in Cartersville paid Hill almost $200,000. 

Hill never delivered any product to either business, nor returned the money.  Hill repaid another customer with $25,000 of the money from the company in Cartersville.  Hill kept the rest of the money for his personal use.

Hill, 71, of Newnan, Ga., could receive a maximum sentence of 20 years in prison and a fine of up to $250,000 on each count.  However, 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 September 4, 2013, at 10:00 a.m. before United States District Judge Timothy C. Batten.

This case was investigated by Special Agents of the Federal Bureau of Investigation and the Coweta County Sheriff’s Department.

Assistant United States Attorney Laurel Boatright 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.

Defendant Tipped Former Co-Worker Between 2009 And 2010

ATLANTA – Richard T. Posey pleaded guilty today to conspiracy to commit securities fraud in connection with a multi-million dollar insider trading conspiracy involving Carter’s stock. 

 “Corporate insiders who disclose company secrets are the enablers who make illegal insider trading possible,” said United States Attorney Sally Quillian Yates.  “Insider trading undermines faith in the nation’s stock markets.  Public company executives and employees should be on notice that when it comes to material, non-public information, they are required to play by the same rules as everyone else.”

Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s guilty plea holds this defendant accountable for his criminal actions and makes it clear that corporate executives are not exempt from the rule of law.  The FBI asks that anyone with information regarding such criminal activity to contact their nearest FBI field office.”

According to United States Attorney Yates, the charges and other information presented in court:  Posey, 52, of Duluth, Ga.,  was employed as a Vice President of Operations for various Carter’s brands and divisions, and later as Vice President of Operations for the company’s wholesale sales business from in or about July 2002 until his termination in January 2013.

Carter’s is a publicly-traded company registered with the U.S. Securities and Exchange Commission (“SEC”), and its stock is listed on the New York Stock Exchange under the ticker symbol “CRI.”  Carter’s is obligated to report its financial results in annual and quarterly filings with the SEC, so that members of the public can make informed investment decisions.

From approximately April 2009 through July 2010, while employed by Carter’s, Posey disclosed inside information about Carter’s upcoming earnings releases and other developments to Eric M. Martin, the company’s former head of investor relations, for the purpose of making illegal insider trades and tipping others.  Martin, who was convicted on December 18, 2012, of tipping a former Wall Street analyst identified as “Cooperator Number 1” during Martin’s employment with Carter’s between 2005 and 2009, repeatedly bought and sold Carter’s stock based on the inside information provided by Posey between 2009 and 2010, and Martin also continued to tip Cooperator Number 1 and others.

For example, Posey tipped Martin in advance of Carter’s October 27, 2009, announcement that it was conducting an internal investigation into accounting problems and would be delaying its earnings release for the third quarter of 2009.  Almost immediately after Posey tipped Martin, on Friday, October 23, 2009, Martin sold his entire position in Carter’s stock, over 35,000 shares valued at approximately $1 million.  Later that morning, Martin passed the tip during a telephone call to an individual identified in the Criminal Information as “Portfolio Manager Number 1,” an employee of a prominent New York hedge fund identified in the Criminal Information as “Hedge Fund Number 1.”  While still on the telephone with Martin, Portfolio Manager Number 1 ordered the sale of Hedge Fund Number 1’s entire position in Carter’s stock, 300,000 shares valued at nearly $9 million.  The very next trading day, Monday, October 26th, Martin tipped Cooperator Number 1 during a telephone call.  Immediately after the call ended, Cooperator Number 1 sold his entire position in Carter’s stock -- 15,000 shares valued at over $400,000 -- and bought November 30th put options, thereby betting on Carter’s stock price to decline significantly.  The next morning, Tuesday, October 27th, Carter’s shocked the market with the news of its internal investigation and earnings delay, and its stock price fell over 20% in one day.  The internal investigation ultimately resulted in a multi-year financial restatement by Carter’s, criminal indictments of two of its former top executives for securities fraud and related offenses, and three SEC enforcement actions.

Posey disclosed this and other inside information to Martin in exchange for reciprocal stock tips about other public companies to which Martin had access, for future networking opportunities, and for friendship.  Posey did so over the phone, at dinners, during drinks, and on the golf course.

Posey also traded in Carter’s stock for his own benefit on the basis of inside information about Carter’s earnings releases during his employment with the company.  Between mid-2005 and late 2009, Posey traded thousands of shares of Carter’s stock during company-wide trading blackout periods that preceded approximately 14 quarterly or annual earnings releases, even though company policies prohibited company insiders from trading in Carter’s stock at those times.  Posey did so without obtaining approval for the trades from Carter’s Chief Financial Officer, which company policies required Posey and a select group of key personnel to do, given their regular access to and receipt of material, non-public information.  Posey’s blackout trading resulted in illegal profits and losses avoided in the amount of approximately $50,000.

Posey was convicted of tipping his former co-worker about Carter’s quarterly and annual financial results and other material, non-public information in advance of the public announcement of the information, beginning shortly after the company terminated Eric M. Martin at the end of March 2009, and continuing through July 2010.  He pleaded guilty to a Criminal Information charging one count of Conspiracy to Commit Securities Fraud.  He has agreed that he is responsible for illegal insider trading gains and losses avoided resulting from the conspiracy, his own trading, and relevant conduct between $2.5 million and $7 million, and has agreed to pay at least $800,000 in restitution to Carter’s, which represents the approximate amount of legal fees Carter’s has incurred to date in connection with the government’s insider trading investigation.  Posey could receive a maximum sentence of five years in prison and a fine of up to $250,000.  In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding, but provide appropriate sentencing ranges for most offenders. 

In a separate case, a federal grand jury indicted Eric M. Martin on November 7, 2012, on one count of conspiracy, seven counts of securities fraud, and three counts of wire fraud in connection with an insider trading conspiracy from early 2005 to March 2009 and his own blackout trading while working for Carter’s.  Martin pleaded guilty to one count of conspiracy on December 18, 2012.  A sentencing date has not yet been set for either case.  Both cases are assigned to United States District Judge Richard W. Story.

This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force.  President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes.  The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

This case is being investigated by the FBI.  The Atlanta Regional Office of the SEC has conducted a separate investigation of possible civil violations of the U.S. securities laws, and on August 22, 2012, the SEC filed a civil enforcement action against Martin for insider trading.  That case is pending.

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

Defendant Stole Over $450,000 From Georgia’s Largest Hospital

ATLANTA - Donald Thomas, the former Assistant Controller for the Grady Memorial Hospital Corporation, was indicted on June 18, 2013, by a federal grand jury for embezzling over $450,000 in public funds. 

 “Thomas is charged with stealing from a hospital that serves the healthcare needs of thousands of people in the Atlanta community and beyond,” said United States Attorney Sally Quillian Yates.  “Because Grady relies on federal funding to provide medical care to those who cannot afford it, money embezzled from Grady cheats both Grady patients and taxpayers.”

Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI launched its criminal investigation into this matter after receiving information that Thomas, a person in a position of trust at Grady Memorial Hospital, was abusing that position and, in fact, embezzling hospital funds.   The federal indictment of Thomas should serve as a message that the FBI will aggressively dedicate its various investigative resources in such matters that can adversely impact our healthcare system and those that provide it.”

According to United States Attorney Yates, the charges and other information presented in court: Thomas was employed as Assistant Controller for the Grady Memorial Hospital Corporation (“Grady”) from December 1994 through June 2011.  Grady is one of the largest public health systems in the United States and oversees Grady Memorial Hospital, the largest hospital in Georgia.  Grady relies significantly on federal funding, including Medicare reimbursement and grants. 

The indictment alleges that, beginning in January 2008, Thomas used his access to Grady’s payroll system to fabricate additional compensation, such as vacation pay and severance pay, to be issued to terminated Grady employees.  Thomas then altered payroll records so that the additional payments were deposited directly into accounts under his control.  In addition, according to the indictment, on two occasions, Thomas created paper checks for falsified compensation made payable to terminated Grady employees.  Thomas allegedly forged the employees’ signatures to endorse the checks before depositing them into one of the bank accounts under his control. 

According to the indictment, the scheme came to light when a former Grady employee expressed concern that her 2011 W-2 tax form indicated a larger amount of compensation from Grady than she had actually earned or received.  Further investigation revealed that her payroll records had been altered and additional pay in her name had been deposited into an account controlled by Thomas.  The indictment states that at least twenty former Grady employees received inaccurate tax forms as a result of Thomas’s alleged crimes.

The indictment alleges that over the course of the scheme, Thomas obtained over $450,000 from Grady.  Thomas unsuccessfully attempted to cover up his embezzlement by reversing some of the changes that he had made in Grady’s payroll system.

Thomas, 53, of Atlanta, Ga., was arraigned today before United States Magistrate Judge Alan J. Baverman on charges of embezzlement, wire fraud and bank fraud, and was released on bond. The charges carry a maximum statutory penalty of 30 years in prison and a fine of up to $1,000,000.  In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.

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

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

Assistant United States Attorneys Shanya J. Dingle and G. Scott Hulsey are prosecuting the case.

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

Business Provided Speech-Language Therapy Services for Children

ATLANTA – Jennifer C. Alsdorf has been indicted on charges of health care fraud and wire fraud for filing over $500,000 in fraudulent claims with the Georgia Medicaid program. 

“This defendant is charged with robbing Medicaid of over half a million dollars intended for children in need.  Her alleged fraud includes billing for medical services never performed, for patients never seen, and in the names of medical professionals who were not working for the defendant,” United States Attorney Sally Quillian Yates.   “Medicaid fraud affects individuals, families, and communities in higher costs, and as this case shows, we have a strong federal-state alliance intent on combatting this serious crime.”

“The FBI continues to work hard in ensuring that federal Medicaid funds are used in the manner intended by law and will continue to work with its various law enforcement partners in identifying, investigating, and presenting for prosecution those individuals who abuse the system,” stated Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office.  “Anyone with information regarding health care fraud should contact their nearest FBI field office immediately.”

“It appears that Ms. Alsdorf viewed Medicaid as a slush fund to enrich herself,” said Attorney General Sam Olens.  “This case sends a strong message that the federal and state governments will work together to aggressively prosecute Medicaid fraud in Georgia.”

According to United States Attorney Yates, the charges and other information presented in court:  Jennifer C. Alsdorf, 43, of Tampa, Fla., is the owner, President, and CEO of Hand in Hand Speech & Language Services, Inc.  The medical business is located in Tampa, Fla. (and prior to 2005 in Vidalia, Ga.) and offers speech-language therapy services for children covered by Medicaid.  Acting on behalf of Hand in Hand, Alsdorf contracted with speech-language pathologists to perform services under independent contractor agreements.  Alsdorf would bill Medicaid for the services provided by the pathologists, and then send a portion of the amount she received from Medicaid to them.

In the contracts, Alsdorf agreed to pay a set fee to the pathologists for each initial evaluation and each subsequent therapy visit rendered by the pathologists to Medicaid recipients.  The fees that Alsdorf paid to the pathologists for those two services were less than, but based on, the amounts that Medicaid reimbursed for the services.  Alsdorf made a profit by keeping the difference between what Medicaid paid and what she remitted to the pathologists.

After rendering services to patients, the pathologists would send Alsdorf treatment notes showing which patients they had seen, how long they had provided therapy, and which services they had provided.  Alsdorf was supposed to use these notes to prepare the claims to submit to Medicaid.  Unbeknownst to the speech-language pathologists, however, in addition to billing Medicaid for initial evaluations and therapy visits, Alsdorf also billed Medicaid for “sensory integration” therapy, a service the pathologists had not provided.  Many of the pathologists did not even know what sensory integration therapy was and had never heard of such a service.  Alsdorf did not send any of the money she received from Medicaid for this service to the pathologists.  She instead kept all of the money she received for sensory integration therapy.

Alsdorf also submitted claims to Medicaid for patient visits that never occurred.  She submitted claims under pathologists’ names for services during times when they were not working with Hand in Hand.  She also submitted claims representing that the pathologists had treated certain patients when, in fact, the pathologists had never seen or treated the patients at any time.  Alsdorf is alleged to have submitted over $500,000 in fraudulent claims to Medicaid.

A federal grand jury indicted the defendant on May 21, 2013, who was arraigned today on the charges before United States Magistrate Judge Justin S. Anand.

The indictment charges 74 counts of health care fraud and 10 counts of wire fraud.  Each health care fraud count carries a maximum sentence of 10 years in prison, and each wire fraud count carries a maximum sentence of 20 years in prison.  Each count also carries a fine of up to $250,000.  In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.

Members of the public are reminded that the indictment 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 and Investigators from the Georgia Medicaid Fraud Control Unit and the Georgia Department of Community Health.

Assistant United States Attorney Stephen H. McClain and Georgia Assistant Attorney General Henry A. Hibbert 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 – Elton Augustin, a former Atlanta Police Department officer, was sentenced to two years in prison today for conspiring to accept bribes and lying to FBI agents. 

 “Police officers are sworn to uphold the law and protect the community they serve, but this defendant protected an illegal business in exchange for cash and then lied to federal investigators,” said United States Attorney Sally Quillian Yates.   “His actions betrayed the community and the honest law enforcement officers who serve honorably every day.”

 “While today’s sentencing ends one police officer’s career, it is important to note that the vast majority of dedicated law enforcement officers that serve our community understand their oaths to the badge and honor their commitment to their positions of trust,” stated Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office. “The FBI urges anyone with information regarding activities involving police corruption to contact their nearest FBI field office.”

According to United States Attorney Yates, the charges and other information presented in court:  From June 2007 through August 2007, while employed as a police officer with the Atlanta Police Department (APD), Elton Augustin worked at an illegal nightclub in Atlanta, Ga.  Augustin, along with two other APD officers, received over $10,000 in cash to provide security and prevent police officers from investigating illegal activity at the nightclub, which included gambling, prostitution, drug sales, and permit violations. 

Augustin and the other officers were posted outside of the nightclub’s parking lot to intercept on-duty police officers responding to emergency calls.  The officers’ presence at the nightclub prevented on-duty officers from discovering the illegal activity and allowed the club to operate undetected for several months.

On September 15, 2007, APD officers shutdown the illegal nightclub and arrested the club’s owners.  In 2010, federal agents learned about the officers’ employment at the illegal nightclub.  When confronted, Augustin lied to federal agents investigating his employment at the illegal nightclub. 

The other two APD police officers, Lucius T. Solomon and Eric Jones, were also convicted of bribery charges.  Solomon pleaded guilty to bribery and drug trafficking charges on September 2, 2010, and was sentenced to 12 years in prison on December 17, 2010.  Jones pleaded guilty to conspiring with Augustin to accept bribes on April 5, 2013, and is awaiting sentencing. 

Augustin, 32, of Stockbridge, Ga., was sentenced today by United States District Judge Timothy C. Batten, Sr. to serve two years in prison, to be followed by two years of supervised release, and to perform 100 hours of community service.  Augustin was convicted of lying to federal agents after a jury trial on December 7, 2012.  On February 14, 2013, Augustin pleaded guilty to conspiring to accept bribes. 

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

Assistant United States Attorney Jeffrey A. Brown prosecuted the case.

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

Defendant Prostituted 17-Year-Old Girls in Metro Atlanta and Montgomery, Ala.

ATLANTA - Demario Hillmon was sentenced today to 10 years in federal prison on charges of sex trafficking of a minor and transporting a minor across state lines for prostitution.

 “This case is another example of a successful investigation and prosecution of a man who took advantage of vulnerable young girls by making false promises to lure them into prostitution,” said United States Attorney Sally Quillian Yates.   

 “Today’s sentencing is the result of the great partnership HSI has with law enforcement in Georgia in our unyielding resolve to bring sex traffickers to justice,” said Brock D. Nicholson, Special Agent in Charge of HSI Atlanta. “Trafficking children for sex is one the most deplorable crimes our HSI special agents investigate. My agency is committed to protecting those who cannot protect themselves.”

“Working with our local and federal law enforcement counterparts to investigate child sex trafficking and bring those responsible for exploiting children to justice is a priority for the GBI,” said Vernon Keenan, GBI Director.

“I would like to commend U.S. Attorney Sally Yates, her staff, and all the law enforcement partners for the investigations, apprehension and conviction of this most dangerous person in our society,” said DeKalb County Police Chief Cedric L. Alexander.

“The successful outcome of this case would not have been possible without the cooperation of all local, state and federal agencies involved in the investigation and prosecution of this case.  This is another shining example of how well law enforcement in Georgia work together to protect our citizens,” said Billy Grogan, Chief of Police for the City of Dunwoody.    

According to United States Attorney Yates, the charges and other information presented in court:  Hillmon met young girls on “Tagged.com,” a social networking website, and on “Backpage.com,” an adult escort website.  Hillmon enticed the victims to engage in prostitution by false promises of money and gifts.  He then advertised the girls on internet websites and arranged for men to engage in commercial sex acts with them in and around metro Atlanta, and in Montgomery, Ala.  Hillmon kept most of the money for himself.

Law enforcement officers discovered Hillmon’s sex trafficking after the family of one of the 17-year-old girls reported her as a runaway.  Hapeville Police Department officers, with the assistance of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Georgia Bureau of Investigation, located the girl.  In the process, the investigators uncovered Hillmon’s sex trafficking operation, and also identified and recovered another 17-year-old victim.

Hillmon, 30, of Douglasville, Ga., was sentenced by United States District Judge Julie E. Carnes to 10 years in prison to be followed by 10 years of supervised release. Hillmon was convicted of these charges on April 8, 2013, upon his plea of guilty.

This case was investigated by Special Agents of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Georgia Bureau of Investigation, and Detectives of the Hapeville Police Department, Dunwoody Police Department, and DeKalb County Police Department.

Assistant United States Attorney Katherine M. Hoffer prosecuted the case.

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

Defendant Allegedly Sent and Received Graphic Images Over the Internet

ATLANTA – Kevin Hickey, who was formerly employed as the Director of Parish Outreach for Life Teen International in Atlanta, Ga., has been arrested on a federal complaint charging him with distributing and possessing child pornography. 

“This defendant collected child pornography at the same time he was entrusted to protect, counsel, and serve children, which reinforces how essential it is that we uncover and prosecute individuals who pose such a great threat to our community,” said United States Attorney Sally Quillian Yates. 

“The terms ‘child predator’ and ‘person in a position of trust’ should never refer to the same individual,” said Brock. D. Nicholson, special agent in charge of ICE Homeland Security Investigations in Atlanta. “While anyone downloading and distributing child pornography is a target for HSI special agents, those who might have access to children will receive our immediate attention. HSI is doing everything in its power to prevent the victimization of innocent children in our society.”

According to United States Attorney Yates, the criminal complaint, and information presented in court:  Law enforcement identified Hickey as an individual with a sexual interest in children who also collects and distributes child pornography.  In June 2013, using his online screen name “funguyatl77,” Hickey engaged in an online communication monitored by federal agents.  In that communication 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 his home where he maintained his computer and engaged in the collection and distribution of these pornographic images.  Thousands of images of child exploitation were discovered on Hickey’s electronic devices.    

Hickey, 39, of Norcross, Ga., was arrested on June 6, 2013, and made his first appearance in federal court on June 7, 2013.  On Friday, June 14, 2013, United States Magistrate Judge Russell G. Vineyard held a detention hearing and Hickey was detained without bond.

The public is reminded that a criminal complaint 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.

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

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.

ROME, Ga. – Clifford J. Joyce has pleaded guilty to planting methamphetamine on the car of a Murray County woman for the purpose of getting her arrested.
           
 “The defendant attempted to manipulate the criminal justice system to serve his own purpose by framing someone for drug possession,” said United States Attorney Sally Quillian Yates.  “While the narcotics charges were ultimately dismissed, this outrageous conduct cannot stand.”  

 “The investigation and prosecution of persons involved in public corruption are a priority of the Georgia Bureau of Investigation. Many of the cases such as this require partnership of local, state and federal authorities,” said GBI Director Vernon M. Keenan.

According to United States Attorney Yates, the charges and other information presented in court:  In July 2012, a Murray County woman met with then-Chief Magistrate Judge Bryant Cochran regarding a legal matter. Thereafter, the woman alleged that during the meeting, Cochran made inappropriate sexual advances towards her.

In an effort to discredit the woman, Joyce and others participated in a scheme to frame the woman for drug possession.  On or about August 12, 2012, Joyce hid a metal tin under the tire well of the woman’s car.  The metal tin contained five small packets of methamphetamine. 

Two days later, on August 14, 2012, Murray County Deputy Sheriff Joshua Greeson (who has since been convicted of witness tampering for lying to law enforcement officers) conducted a traffic stop of the woman’s car. During the traffic stop, Greeson searched the vehicle for drugs. Ultimately, after receiving information from Captain Michael Henderson (who has also been convicted of witness tampering), Greeson found the metal tin of methamphetamine under the tire well.  After locating the drugs, Greeson and Henderson arrested the woman and the driver of the car on narcotics charges. On August 24, 2012, the charges against the woman were dismissed.

Joyce, 27, of Dalton, Ga., could receive a maximum sentence of 20 years in prison and a fine of up to $1,000,000.  However, 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 August 23, 2013, at 1:30 p.m., before United States District Judge Harold L. Murphy.

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

Assistant United States Attorneys Jeffrey W. Davis and Michael Herskowitz are prosecuting the case.

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

Sroufe Falsely Claimed $1.7 Million Tax Refund

ATLANTA – Donus R. Sroufe has been sentenced to over four years in prison for interfering with the administration of the revenue laws and for making a false claim for a $1.7 million tax refund.

“The defendant lied on his tax return and tried to defraud the U.S. Treasury out of $1.7 million,” said United States Attorney Sally Quillian Yates. “Fortunately, the IRS caught his fraudulent return before any taxpayer funds were paid out.”

“This was a case of greed, deceit, manipulation and theft directed at the United States Department of Treasury and the American taxpayer,” stated Veronica Hyman-Pillot, Special Agent in Charge IRS Criminal Investigation. “The prison time received by Mr. Sroufe should serve as a strong warning that tough punishment awaits those who embark on a similar criminal path.”

According to United States Attorney Yates, the charges and other information presented in court:  In March 2009, Sroufe filed a United States Individual Income Tax Return (Form 1040) for 2008, claiming a tax refund of $1.7 million.  On the tax return, Sroufe falsely claimed: (1) to have received $2.5 million from a United States Treasury bond, and (2) that he had paid over $2.6 million in federal taxes.  In fact, the $2.5 million bond was a fake and Mr. Sroufe had not paid any income taxes for 2008.

In April 2009, the Internal Revenue Service (IRS) notified Sroufe that his 2008 tax return was “frivolous” and warned him that he could face a penalty for filing a false return.  Moreover, in June 2009, two IRS Special Agents met with Sroufe in person and notified him that the $2.5 million bond appeared to be a fictitious financial instrument. 

Despite those warnings, in August 2009, Sroufe mailed an identical copy of the 2008 tax return to the United States Department of the Treasury, including a copy of the fake $2.5 million bond, and demanded a $1.7 million tax refund.

On March 13, 2013, a jury found Sroufe guilty of interfering with the administration of the revenue laws and for making a false claim for a tax refund.  

Today, Sroufe, 55, of Suwanee, Ga., was sentenced to four years, three months in prison to be followed by three years of supervised release, and ordered to pay a fine of $75,000.

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

Assistant United States Attorneys Jeffrey W. Davis, Steven D. Grimberg, and Shanya J. Dingle prosecuted the case.

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

Conspiracy Involved over 30,000 Oxycodone Pills

ATLANTA - Kristen Noelle Goduto and 12 other defendants have been sentenced on charges of conspiring to possess oxycodone with the intent to distribute it.  The defendants had all previously pleaded guilty to the charges.

 “These defendants exhibited total disregard for how their pill peddling could destroy lives,” said United States Attorney Sally Quillian Yates.  “This prescription drug can be deadly when not taken under proper medical oversight.  Such brazen forging of prescriptions should serve as a reminder that some in our society will go to any length for illicit gain.  We will continue in our commitment to prosecute law-breakers and keep the citizens of this district safe.”    

  Harry S. Sommers, the Special Agent in Charge of the Atlanta Field Division of the DEA said of the case, “The sharp increase in the distribution of pain pills for non-medical reasons continues to be a major concern. As such, DEA and its local law enforcement counterparts will continue to target those who traffic these addictive pain medications. These individuals are deserving of the sentences that they received today because of the spirited level of law enforcement cooperation.”

According to United States Attorney Yates, the charges and other information presented in court: Kristen Noelle Goduto led these 12 defendants in a conspiracy to possess oxycodone with the intent to distribute it.  Goduto manufactured prescriptions for oxycodone and recruited others to pass the forged prescriptions throughout the Northern District of Georgia.  The majority of the other defendants sentenced today assisted her by passing the prescriptions.  The prescriptions would appear legitimate and would often pass through pharmacies because Goduto would either replace the doctor’s office number with her cellular telephone number, so she could falsely verify that the prescription was legitimate; or she kept the doctor’s true number, but either had the prescriptions passed on nights or weekends (when the doctor’s office was closed).  For one doctor, she recruited an individual who worked at the doctor’s office who would falsely verify prescriptions.  By passing these forged prescriptions, this conspiracy obtained, or attempted to obtain, over 30,000 pills of oxycodone.

The sentences handed down by United States District Court Judge Julie E. Carnes are:

Kristen Noelle Goduto, 29, of Marietta, Georgia, was sentenced to 14 years in prison to be followed by 5 years of supervised release. Kristen Goduto was convicted of these charges on September 13, 2011, upon her plea of guilty.

Kory Joseph Goduto, 32, of Marietta, Georgia, was sentenced to 11 years, 8 months years in prison to be followed by 3 years of supervised release. Kory Goduto was convicted of these charges on December 6, 2011, upon his plea of guilty.

Pasquale Peter Goduto, 62, of Marietta, Georgia, was sentenced to 3 years of probation. Pasquale Goduto was convicted of these charges on February 29, 2012, upon his plea of guilty.

Mark James O’Brien, 36, of Marietta, Georgia, was sentenced to 5 years, 3 months in prison to be followed by 3 years of supervised release. O’Brien was convicted of these charges on December 6, 2011, upon his plea of guilty.

Lori Rene Anderson, 34, of Acworth, Georgia, was sentenced to 3 years of probation, including one year of home confinement. Anderson was convicted of these charges on June 27, 2012, upon her plea of guilty.

Georgia Ann Hulsey, 33, of Marietta, Georgia, was sentenced to time served in prison to be followed by 3 years of supervised release. Hulsey was convicted of these charges on October 3, 2011, upon her plea of guilty;

Phillip David Hobbs, 40, of Canton, Georgia, was sentenced to time served in prison to be followed by 3 years of supervised release. Hobbs was convicted of these charges on July 20, 2011, upon his plea of guilty.

David Lee Tanner, 34, of Acworth, Georgia, was sentenced to time served in prison to be followed by 3 years of supervised release. Tanner was convicted of these charges on October 3, 2011, upon his plea of guilty.

Ryan Patrick Trento, 27, of Marietta, Georgia, was sentenced to three years in prison to be followed by 3 years of supervised release. Trento was convicted of these charges on March 12, 2013, upon his plea of guilty.

Justin Howard, 30, of Braselton, Georgia, was sentenced to 3 years of probation. Howard was convicted of these charges on December 6, 2011, upon his plea of guilty.

Ajian Martine Greene, 29, of Sandy Springs, Georgia, was sentenced to 5 years in prison to be followed by 5 years of supervised release. Greene was convicted of these charges on January 3, 2013, upon his plea of guilty.

Terry Randy Wallace, 24, of Newnan, Georgia, was sentenced to 3 years of probation. Wallace was convicted of these charges on May 11, 2011, upon his plea of guilty.

Carl Clifton Lewis, 25, of Conyers, Georgia, was sentenced to time served in prison to be followed by 2 months in a halfway house and 3 years of supervised release. Greene was convicted of these charges on August 23, 2011, upon his plea of guilty.

This case was investigated by Special Agents of the Drug Enforcement Administration with assistance from the Cartersville Police Department, the Cherokee Muli-Agency Narcotics Squad, the Cobb County Sheriff’s Office, the Smyrna Police Department, the Fannin County Sheriff’s Office, the Rome Police Department, the Bartow County Sheriff’s Office, and the Douglasville Sheriff’s Office.

 Assistant United States Attorney Elizabeth M. Hathaway and C. Brock Brockington prosecuted the case.

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

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

Allowed Contraband to Bypass Security Checkpoints

ATLANTA - Rasondo Maurice Norris has been charged in a federal criminal complaint on charges of attempting to possess cocaine with the intent to distribute. 

 “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 allowed what he believed to be drugs and weapons onboard commercial flights.  Public safety is a responsibility we take seriously, and our office will continue to prosecute those who are endangering our citizens.”

 “HSI special agents and our partners from the ATF, DEA and the Federal Air Marshal Service have identified and eliminated a significant security threat at Hartsfield-Jackson,” said Brock D. Nicholson, Special Agent in Charge of ICE Homeland Security Investigations in Atlanta. “While this defendant may have abused his access to secure areas at the airport for simple greed, HSI and our law enforcement partners will remain vigilant in ensuring that any potential security holes are identified and patched as quickly as possible.”

According to United States Attorney Yates, the charges and other information presented in court:  Norris, 29, of Stone Mountain, Ga., worked as a baggage handler for AirTran Airlines.  In May 2013, Special Agents of HSI learned that, for a fee, Norris would help people involved in criminal activity bring contraband onto airplanes by using his security clearance to bypass 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 Mack 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.

The criminal complaint charges two counts of attempting to possess cocaine with the intent to distribute.  The charges carry a maximum sentence of life imprisonment for count one and 40 years in prison for count two and a fine of up to $10,000,000 for count one and $5,000,000 for count two.  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.

Norris is scheduled for a bond hearing on June 12, 2013 at 1:30 p.m. before U.S. Magistrate Judge Vineyard.

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 is prosecuting the case.

Members of the public are reminded that the complaint 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.

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