Northern District of Georgia

Hid Liquid Meth Inside of Vehicle Gas Tank

ATLANTA - Gabriel Jimenez Antunez, Pablo Saucedo Aparicio, Martin Ascencio, and Javier Munoz Ruiz have been indicted on federal drug and money laundering charges for their roles in the delivery of liquid methamphetamine to a residence in Austell, Ga.

“A seizure of this size reminds us that Atlanta continues to serve as a focal point for the distribution of methamphetamine,” said United States Attorney Sally Quillian Yates.  “Law enforcement agents in our community are doing a remarkable job tracking down and seizing drugs before they can be distributed into our communities.”

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

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

According to United States Attorney Yates, the charges and other information presented in court:  In May 2013, DEA and IRS agents learned that Jimenez, a local distributor for a Mexican drug trafficking cartel, was coordinating the delivery of a shipment of liquid methamphetamine to the metro-Atlanta area and laundering the proceeds of that drug trafficking activity.  In the early morning hours of May 12, 2013, agents tracked the delivery of liquid meth, made by Munoz using a Ford F-350 vehicle, to a residence in Austell, Ga.  

Agents determined that the liquid methamphetamine was stored inside the truck’s gas tank, and observed Jimenez, assisted by Saucedo, arrive at the location with thermoses, which were to be used to transfer and store the liquid methamphetamine before it was further distributed.  Ascencio was in the process of removing the gas tank containing approximately 75 liters of diesel fuel and liquid methamphetamine when agents arrested the defendants and seized the drugs.  With assistance from agents at ICE-Homeland Security Investigations, agents executed search warrants at this and related residences, recovering another 10 pounds of crystal methamphetamine and other evidence.

The indictment charges the defendants: Antunez, a.k.a. “Negrito,” 39, of Mexico; Aparicio, 38, of Mexico; Ascencio, 49, of Mableton, Georgia.; and Ruiz, 54, of Fort Worth, Texas, with conspiring to possess with the intent to distribute more than 500 grams of methamphetamine, a charge that carries a sentence ranging potentially from 10 years to life. 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 charging documents and evidence presented in court 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 Drug Enforcement Administration and Internal Revenue Service Criminal Investigation.

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.

ATLANTA - Detrick Mattox, who operated numerous fraudulent work-from-home businesses has been sentenced to over two years in prison for conspiring to commit mail fraud. 

“This scheme was designed for one simple purpose - to swindle people out of their hard-earned money through lies and deceit,” said United States Attorney Sally Quillian Yates.  “Mattox preyed on folks just trying to earn a living.  Now he’s going to prison.” 

The U.S. Postal Inspection Service has no shortage of work-at-home schemes to investigate.  This is just another example of the defendant’s greed preying on the public’s need to earn an honest living.  Consumers should be suspicious of any offer that does not pay a regular salary because if it sounds too good to be true, it probably is,” said Keith Morris, Postal Inspector in Charge for the Atlanta Division.

According to United States Attorney Yates, the charges and other information presented in court:  Mattox ran numerous businesses that purported to offer its members work-from-home opportunities, including:  Atlanta’s Mailing Company; Atlantis Mailing Company; Brown Staffing Services; Central Mailing Company; Detrick Mattox Enterprises; Georgia Assembly Company; Global Assembly Company; Global Mailing Enterprises; Jobs R US; National Assembly Company; Nationwide Express Mailing; Pacific Mailing Company; Premiere Mailing Company, and Regional Assembly Company.

 Mattox promoted his work-from-home businesses by claiming that members who applied for the program and then paid an initiation fee would be able to work from their homes and earn up to $5,000 per week.  The members were supposed to assemble materials into booklets and mail the booklets to the addresses provided by Mattox. He also claimed that members could earn up to $20 for each booklet that they assembled and mailed. To join the program, prospective members had to pay Mattox an up-front initiation fee of approximately $50 to $500.  He typically instructed prospective members to pay the initiation fee by mailing a money order to one of the named businesses. 

 Once the initiation fee was paid, the majority of the members never received any materials to assemble for their work-from-home businesses.  The few members who did receive materials from Mattox, and assembled and then mailed those materials, were never paid for their services.  After Mattox received a member’s initiation fee, virtually all attempts by the member to contact the work-from-home businesses were ignored. Finally, to avoid consumer complaints and negative public information, Mattox frequently changed the names, websites, and contact information of the work-from-home businesses.

According to an affidavit submitted in support of a search warrant obtained in the case, more than 200 people responded to advertisements by Mattox and became members. Thereafter, a Postal Inspector conducted an undercover investigation, responding to Internet advertisements posted by Mattox, but never received the promised materials after sending payment.

Mattox, 33, of Ellenwood, Ga., was sentenced to 2 years 9 months of in prison to be followed by 3 years of supervised release. He was convicted of the charges on March 18, 2013, upon his plea of guilty.

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

Assistant United States Attorney Jeffrey W. Davis prosecuted the case.

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

Accused of Awarding Computer Contract to Bidder in Exchange for Bribes

ATLANTA – Jerome Oberlton and Mahendra Patel have been arraigned for allegedly receiving kickback payments in exchange for Oberlton using his influence as Chief Information Officer for Atlanta Public Schools to award a $780,000 computer project. 

“As the Chief Information Officer for APS, Oberlton was entrusted with overseeing a program designed to centralize student data,” said United States Attorney Yates.  “Rather than ensuring that venders were selected based upon what was best for the school system the defendants are charged with using Oberlton’s public position to line their private pockets.” 

 “Abusing one’s position of public trust for personal gain should not and will not be tolerated,” stated Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office.  “The FBI, in designating public corruption matters as its number one criminal programs priority, asks that anyone with information regarding such activity to contact their nearest FBI field office.”

“What started as a friendship between Mr. Patel and Mr. Oberlton resulted in them lining their pockets with funds obtained illegally through kickbacks,” stated Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation.  We are committed to ‘following the money trail’ to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice.”

According to United States Attorney Yates, the indictment, and information presented in court:  Jerome Oberlton was the Chief Information Officer (CIO) for Atlanta Public Schools (APS) between June 2004 and August 2007 and had overall management responsibility for APS’ information technology program.  In January 2007, APS issued a request for proposal for a data warehousing project for the school system.  The project’s intent was to centralize information relating to APS operations, including student information, by storing it digitally in a secure, easily-accessible manner. 

The indictment charges that from the start of the project in January 2007, Oberlton influenced the request for proposal process and ultimately caused the winning bidder to be selected in exchange for kickbacks paid to Oberlton and Patel, who was an acquaintance of Oberlton.  In order to hide the bribes, Oberlton created Global Technology Partners and later Global Technology Services and funneled the bribe payments through these shell companies.  Oberlton was able to conceal his ownership of Global Technology Partners and Global Technology Services from APS.  In contrast, the kickbacks to Patel were disguised as sales commissions for non-existent consulting work.  The computer company ultimately paid approximately $60,000 in bribes to Oberlton and Patel for nearly six months and in return the IT company received almost $800,000 in APS project work. 

Oberlton, 47, of Dallas, Texas, and Patel, 45, of Kennesaw, Ga., were indicted on May 28, 2013.  The defendants are charged with conspiracy to defraud APS, which carries a maximum term of five years in prison and a fine of $250,000.  They also are charged with conspiracy under color of official right, a money laundering conspiracy, mail fraud, and wire fraud, which each carry a maximum term of 20 years in prison and a fine of $250,000.  Oberlton additionally is charged with bribery and money laundering, which each carry a statutory maximum penalty of 10 years in prison and a $250,000 fine.  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 defendants made their initial appearances on June 4, 2013, before United States Magistrate Judge Russell Vineyard and were released on a $25,000 bond.

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.

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

Assistant United States Attorneys Kurt R. Erskine and Jill E. Steinberg are prosecuting the case.

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

Defendant Possessed and Distributed Child Pornography

ATLANTA – Milton Hugh Cashwell, a previously convicted sex offender who distributed graphic images of child pornography over the Internet was sentenced today to 20 years in prison. 

“The distribution of images portraying the sexual abuse of children is horrific,” said United States Attorney Sally Quillian Yates. “The crime is made that much more egregious by the fact that the defendant had been previously convicted of molesting children.  We will continue to identify and prosecute offenders who victimize innocent children.”

“While it is no surprise that a sex offender previously convicted of crimes involving children would be involved in the distribution of child pornography, the level of depravity on display in these cases is extremely troubling,” said Brock D. Nicholson, special agent in charge of ICE Homeland Security Investigations in Atlanta. “Everyone has a stake in stopping the sexual exploitation of our children. Trading in this filth is not OK; this is not a victimless crime.”

According to United States Attorney Yates and the information contained in public documents: During an undercover child pornography investigation in July 2012, a Homeland Security Investigations (HSI) Special Agent made contact with Cashwell after Cashwell offered to trade child pornography images online.  Cashwell is a previously convicted sex offender, having been convicted of exploiting several children in Sumter County, Ga. in the 1980s.  Cashwell distributed five separate videos containing graphic images of child pornography to the agent by email, including a video that showed an adult male raping a female child approximately six years of age.  Federal agents subsequently executed a search warrant at Cashwell’s home in Americus, Ga.  During that search, agents found broken pieces of Cashwell’s cell phone in his backyard, a phone he attempted to destroy to avoid being caught with the pornographic images.

Cashwell was sentenced to 20 years in prison, to be followed by a lifetime period of supervised release by United States District Court Judge Steve C. Jones.  There is no parole in the federal system.  Cashwell was convicted of the charge on March 29, 2013, upon his plea of guilty.           

This case was investigated by Special Agents with the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.

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

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

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

ATLANTA - Shawn Brown, Christopher Edwards, Kelly Sue Lonas and Nyron Nelson pleaded guilty in federal district court for their roles in an identity theft and fraudulent tax return ring that sought millions of dollars in fraudulent refunds.   
 
“Those who file false tax refund claims using stolen identities threaten the integrity of our federal income tax system and pose a real danger to the financial security of the individuals whose identities are stolen,” said U.S. Attorney Sally Quillian Yates.  “Citizens of this district should know we are dedicated to prosecuting thieves like these and to deterring similar crimes.”

“IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority,” stated Veronica Hyman-Pillot SAC, Atlanta Field Office.  “These individuals demonstrated a blatant disregard of the integrity of the United States tax system and caused undue hardship to innocent victims.  IRS Criminal Investigation, together with our partners at the U.S. Attorney’s Office remain committed to holding those who engage in similar conduct accountable.”

According to United States Attorney Yates, the charges and other information presented in court: From approximately January 2010 to March 2013, Brown led a criminal organization that engaged in a scheme to defraud the Department of the Treasury by filing fraudulent income tax returns and negotiating fraudulent tax refunds using stolen identities.  This is commonly called stolen identity refund fraud.  Brown had ties to criminal organizations in Chicago and Atlanta that engaged in this type of fraud.  The defendants used the stolen identities along with fake wage and withholding information to prepare over one thousand fraudulent tax returns which claimed over $5 million dollars in refunds.  The defendants also established shell corporations and bank accounts to facilitate the fraud. 

On May 28, 2013, Kelly Sue Lonas and Nyron Nelson pleaded guilty to conspiring to commit wire fraud.  On May 29, 2013, Shawn Brown pleaded guilty to conspiring to commit wire fraud and aggravated identity theft.  On May 30, 2013, Christopher Edwards pleaded guilty to aggravated identity theft.  As part of their plea agreements, the defendants have agreed to forfeit their interest in a luxury vehicle and jewelry purchased using illegal proceeds.

The defendants, Shawn Brown, of Atlanta, Ga.; Christopher Edwards, of Eutaw, Ala.; Kelly Sue Lonas and Nyron Nelson, both of Marietta, Ga.; were indicted in November 2012, along with other co-defendants on one count of conspiring to commit wire fraud and multiple counts of aggravated identity theft.  The wire fraud count carries a maximum sentence of 20 years in prison and the aggravated identity theft charge carries a mandatory two-year consecutive sentence to any other sentence imposed.  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. 

Sentencing hearings will be scheduled in September 2013 before United States District Judge Amy Totenberg.

This case is being investigated by Special Agents of the Internal Revenue Service Criminal Investigation and Task Force Officers with the Federal Bureau of Investigation and Alpharetta Police Department.

Assistant United States Attorney Jeffrey A. 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.

Two Silencers Stolen from Licensed Firearm Dealer

ATLANTA - Kevin S. Lahey has been indicted by a federal grand jury on charges of possessing two firearm silencers which are not registered to him in the National Firearms Registration and Transfer Record, of possessing and receiving seven firearms while being an unlawful user of controlled substances, and for making false statements in connection with the purchase of three firearms.

“This potentially dangerous situation was discovered and defused before it could escalate,” said United States Attorney Sally Quillian Yates.  “Through the diligence of our federal and local law enforcement agencies, we will continue to work hard to keep our District safe and secure.”

  “ATF’s mission and priority is to deny criminals access to firearms and protect the rights of law abiding citizens.  When offenders illegally possess firearms that can be used against our citizens, our children and our community, ATF takes this very seriously,” said ATF Special Agent in Charge Christopher Shaefer.

According to United States Attorney Yates, the charges and other information presented in court, on February 6, 2013, a man, later identified as Lahey, stole two silencers from a Lawrenceville firearms dealer.  On February 9, 2012, Snellville Police arrested Lahey in connection with an alleged shoplifting incident at Wal-Mart where he allegedly attempted to steal two laser sights, a bi-pod stand for a rifle, and a holster.  Lahey resisted arrest when officers attempted to arrest him.  During that fight, officers report that he dropped a loaded handgun.  Lahey was released on bond on February 10.  As a result of this shoplifting arrest, the Snellville police were able to identify Lahey to the Bureau of Alcohol, Tobacco, Firearms, and Explosives as the individual who stole the silencers on February 6, 2013.

After identifying Lahey, an ATF task force officer obtained a warrant for his arrest and a search warrant for his residence.  On February 25, 2013, officers and agents from both the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Gwinnett County Police Department executed the search warrant.  During that search, they found one of the stolen silencers attached to a .22 caliber pistol.  Agents later returned and found the second silencer in the crawlspace below Lahey’s parents’ house.  Neither silencer was registered to Lahey in the National Firearms Registration and Transfer Record as required by federal law.  In addition, during the search, agents found multiple firearms in Lahey’s possession, marijuana, bongs, drug pipes and other drug paraphernalia, and a body armor fragmentation protective vest.

Lahey, 26, of Lilburn, Georgia was originally indicted by a federal grand jury on March 19, 2013, for possession of a silencer that was not registered to him.  That indictment has now been superseded to include additional firearms charges.  The superseding indictment has seven counts, including possession of a firearm silencer which is not registered to the defendant in the National Firearms Registration and Transfer Record, possession of seven firearms by an unlawful user of controlled substances, receipt of three firearms while being an unlawful user of controlled substances, and making false statements in connection with the purchase of three firearms, specifically denying that he was an unlawful user of controlled substances.  The charges each carry 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.

Lahey is scheduled to be arraigned on the superseding indictment on May 30, 2013.  He first appeared in court on March 1, 2013, after he was arrested on a federal complaint.  At that time, Lahey was detained without bond and remanded to the custody of the U.S. Marshal pending trial.  He remains in custody.

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

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

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

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

 Over $15 Million in Fraudulent Tax Refunds Filed for “Stimulus Payments”

ATLANTA – Kevin J. Sonnier pleaded guilty today to filing false federal income tax returns using stolen identities that claimed millions of dollars in bogus refunds. 

“The career of a tax cheat who victimized over 15,000 individuals is over,” said United States Attorney Sally Quillian Yates.  “This defendant will also forfeit millions in ill-gotten tax refunds.  This year we have devoted significant resources to address this growing problem and to taking these criminals off the streets.”

“Today’s announcement exemplifies IRS Criminal Investigation’s intense focus and the rigorous pursuit of identity theft and refund fraud,” said Veronica Hyman-Pillot, Special Agent in Charge. “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.”

“The U.S. Postal Inspection Service is charged with protecting the U.S. mail from illegal use.  Postal Inspectors will remain steadfast in this mission and will continue to partner with other law enforcement agencies and the U.S. Attorney’s Office to bring resolution and justice to individuals who continue to take advantage of the system.” said Keith Morris, Postal Inspector in Charge of the Atlanta Division.

According to United States Attorney Yates, the charges and other information presented in court; from approximately July 2010 to January 2013, Sonnier, 44, of Ellenwood, Ga., operated “Sonnier Tax Service,” a tax preparation business in Clayton County, Ga.  Sonnier, working with others, led thousands of victims to believe that they could apply for “stimulus payments” from the federal government by providing their names and Social Security numbers.  Sonnier used toll-free telephone numbers and web sites to advertise the “stimulus payments” and collect victims’ personal information.  He also recruited “runners” who promoted the scheme by word of mouth and collected victims’ personal information for Sonnier’s use.

In actuality, no stimulus payment existed and Sonnier used the victims’ personal information to file fraudulent tax returns on their behalf that claimed over $15 million in bogus refunds.  On the returns, Sonnier claimed false income amounts, student credits, and earned income credits to receive the bogus tax refunds.  The victims did not know that Sonnier had filed tax returns in their names.  Sonnier used the profits generated from this scheme for his own personal benefit, including the purchase and improvement of real estate throughout the state of Georgia.

As part of the plea agreement, Sonnier has agreed to forfeit his interest in 17 separate pieces of real estate located throughout Clayton County, thousands of dollars that were previously seized from his bank accounts, and over 80 electronic devices and items of jewelry that were previously seized by the government.  In addition, Sonnier agreed to a money judgment of at least $7 million and full restitution to the IRS. 

Sonnier pleaded guilty to one count of wire fraud, one count of conspiracy to defraud the United States, and one count of aggravated identity theft.  The wire fraud count carries a maximum sentence of 20 years in prison, the conspiracy count carries a maximum sentence of five years in prison, and the aggravated identity theft charge carries a mandatory two-year consecutive sentence to any other sentence imposed.  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.

Sentencing is scheduled for September 26, 2013, at 10 a.m. before United States District Judge Charles A. Pannell, Jr.        

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

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

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

Victims Brought to Atlanta and Southeast from Mexico and Guatemala

ATLANTA - Arturo Rojas-Coyotl, Odilon Martinez-Rojas, and Severiano Martinez-Rojas, all of Tenancingo in the state of Tlaxcala, Mexico have been indicted on charges of sex trafficking and alien harboring.  A fourth man, Daniel Garcia-Tepal, also of Tlaxcala, Mexico, is charged with encouraging and inducing aliens to enter and reside in the United States unlawfully. 

“Sex trafficking is a malicious crime whether the victims are American citizens or foreign nationals,” said United States Attorney Sally Quillian Yates.  “The defendants are charged with preying on young women from Mexico and Guatemala, smuggling them into the United States under false pretenses, and forcing them into prostitution.  U.S. laws protect all trafficking victims, and we will prosecute those who engage in this practice.” 

“The enslavement of women forced into prostitution is a heinous crime that occurs all too frequently in our communities,” said Brock D. Nicholson, Special Agent in Charge of ICE Homeland Security Investigations in Atlanta. “Across the country, law enforcement agencies from the federal to the local level are teaming up to identify, arrest and prosecute those who seek to profit at the expense of the suffering of others. This case could not have happened without the excellent relationships we have with the FBI and the U.S. Attorney for the Northern District of Georgia.”

Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s indictments and subsequent arrests are a continuation of the federal law enforcement effort to stem the international trafficking of individuals to fuel the commercial sex industry here in the U.S. and in particular in Atlanta.  The FBI asks that anyone with information regarding this type of activity to contact their nearest FBI field office immediately.”

According to United States Attorney Yates, the charges and other information presented in court: Rojas-Coyotl and his uncles Odilon Martinez-Rojas and Severiano Martinez-Rojas used force, fraud and coercion to compel three women to engage in prostitution in Atlanta and Norcross, Ga. at various times between 2006 and 2008. Daniel Garcia-Tepal and Arturo Rojas-Coyotl are also charged with encouraging and inducing a fourth woman to unlawfully enter and remain in the United States between 2010 and 2013. 

Special Agents of the FBI and ICE Homeland Security Investigations arrested Arturuo Rojas-Coyotl, Odilon Martinez-Rojas, and Daniel Garcia-Tepal in a highly coordinated law enforcement sweep today. Severiano Martinez-Rojas remains a fugitive and is believed to be in Mexico.  The FBI will coordinate with its legal attaché in Mexico City to affect his arrest and subsequent extradition back to the United States.  Four search warrants were also executed today in Atlanta and Norcross, Ga. in conjunction with the arrests.

Rojas-Coyotl, 26, Martinez-Rojas, 41, Martinez-Rojas, 48, and Garcia-Tepal, 28, are scheduled for arraignment today.  Each sex trafficking charge carries a maximum sentence of life in prison while each alien harboring charge has a maximum sentence of 10 years in prison, with all counts carrying a fine of up to $250,000 each.  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 Federal Bureau of Investigation and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.  Interagency cooperation in international sex trafficking operations is imperative and vital to the success of the prosecution. 

Assistant United States Attorney Susan Coppedge and Trial Attorney Benjamin Hawk of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case. 

Anyone with information related to sex trafficking should call the Atlanta FBI hotline at 404-679-9000 or the National Human Trafficking Resource Center at 1-888-3737-888.

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

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

Defendant Charged With Misappropriating Almost $1 Million in Charitable Donations

ATLANTA - A federal grand jury has indicted Tyrone Brooks, Sr. on charges that he misappropriated almost $1 million in charitable funds from Universal Humanities, a charity he founded in 1990, and the Georgia Association of Black Elected Officials (GABEO). 

“This is a disappointing day.  Representative Brooks has done much good in his life, both as a state legislator and civil rights leader," said United States Attorney Sally Quillian Yates.  "But the indictment charges that over many years, Representative Brooks misappropriated nearly one million dollars in charitable donations intended to provide literacy training in underserved communities, and from GABEO – the organization for which he has served as president since 1993.  Sadly, by diverting these funds to his own use, Representative Brooks deprived those most in need of critical assistance.”

Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “While the FBI continues to make public corruption matters its number one priority within its criminal branch, we do so with a clear commitment to the rule of law. Today’s federal grand jury indictment reflects the commitment of the FBI and its law enforcement partners to follow the facts of these investigations wherever they lead us.” 

“Mr. Brooks exploited two charitable organizations for his own personal financial gain which came at the expense of the intended beneficiaries of the charitable donations.  IRS Criminal Investigation is committed to investigating individuals who use charitable organizations for their personal gain,” stated Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “Mr. Brooks defrauded not only the donors but also the American taxpayer by evading his tax obligations. Tax compliance should and must be equally shared among all Americans.”

Brooks, 67, of Atlanta, Ga., was charged by a federal grand jury in a 30-count indictment that includes charges of mail, wire and tax fraud.  The indictment charges that, from the mid-1990s through 2012, Brooks solicited contributions from individuals and corporate donors to combat illiteracy and fund other charitable causes, but then used the money to pay personal expenses for himself and his family.  The indictment was returned today, and Brooks will appear for arraignment on a date set by the Court. 

According to the Indictment: Universal Humanities Scheme

The indictment charges two fraud schemes, the first involving a tax-exempt charity, Universal Humanities, Inc., that Brooks established in the early 1990s.  From at least 1995 through 2012, Brooks solicited contributions for Universal Humanities from corporate and individual donors purportedly to combat illiteracy in disadvantaged communities in Georgia and across the southeastern United States, eventually raising more than $780,000.  Donors included the Coca-Cola Company ($400,000), Georgia Pacific Company ($140,000), Northside Hospital ($240,000), and others who gave smaller amounts.  Brooks made specific false representations in his written solicitations about the work that Universal Humanities was doing to combat illiteracy and how the donated funds would be used, claiming that Universal Humanities had established literacy programs and was conducting workshops and tutoring and mentoring students.  He also falsely claimed that Universal Humanities utilized a staff and operated under the direction of a board of directors.

The indictment alleges that in reality, Brooks did not use the donations to promote and address literacy in Georgia or elsewhere, or to retain a staff, occupy office space, fund workshops, hire instructors, or conduct programs attended by students.  Instead, Brooks used the money to pay personal expenses for himself and members of his family, including home repairs, furniture, lawn service, life insurance, entertainment, personal credit card expenses, utility bills, food and clothing, dry cleaning, electronic equipment, jewelry, and payments on personal loans, among other personal expenses. 

Brooks generally accomplished the diversion of funds by depositing the solicited donations into a bank account he established in the name of Universal Humanities, then almost immediately transferring the funds to a personal account, from which he paid personal expenses.  At times, Brooks paid personal expenses directly from the Universal Humanities account. 

            More specifically, the indictment alleges that:

• Contrary to Brooks’ representations to donors, Universal Humanities never had a functioning board of directors.  The individuals listed on the solicitations and incorporation documents were unaware that Brooks had identified them as Universal Humanities board members, and most had never even heard of the organization;

• Brooks represented in a 1999 solicitation that Universal Humanities had been “so successful” in Georgia that it was expanding its programs to other states in the Southeast, and expected to have a projected budget of $500,000.  In truth, Universal Humanities did not have an operational literacy program inside or outside of Georgia, nor did it have a projected budget of $500,000;

• Brooks represented in a 2010 solicitation that Universal Humanities’ literacy program, which Brooks called “Visions of Literacy,” consisted of a host of “outlets” created to increase literacy and included activities such as seminars, workshops, tutoring, mentoring, and rallies.  Brooks further claimed that Universal Humanities and its “staff ha[d] over 40 years’ experience in assisting U.S. communities through a variety of efforts,” and that 10,000 people would be the direct beneficiaries of the literacy program.  In truth, Universal Humanities and Brooks did not operate a functional literacy program, host the literacy activities described in the solicitation, or have a staff; 

• Brooks represented in a 2011 solicitation that the Visions of Literacy program conducted monthly workshops, seminars, and advocacy outreach activities, and that the solicited funds would be used to hire retired teachers and administrators as “educational consultants” to gain “targeted results.”   Instead, Brooks spent the funds donated in response to this solicitation on payments for a personal credit card charges, personal loan payments, utility bills, and a $500 check to a family member as a Christmas gift; 

• Unbeknownst to GABEO, Brooks represented in a 2011 solicitation that GABEO was a “sister organization” to Universal Humanities and that GABEO was committed to the “growth and advancement of Universal Humanities.”  Brooks falsely claimed that GABEO members spoke in public forums to implement and promote Universal Humanities’ programs; that GABEO members taught at Universal Humanities meetings and classes “alongside” Universal Humanities community organizers; and that GABEO members served on the Universal Humanities’ board of directors, steering committee, fundraising committee, and program management committees, though the purported committees were nonexistent; and

• Brooks submitted a form to the IRS under oath claiming that Universal Humanities incurred expenses of $62,652 for printing, postage, and publications in 2007; $67,601 for “commemorative events” in 2008; and $53,184 for charitable contributions, fundraising, and conferences in 2009.  Just one year before, Brooks had submitted the same form under oath claiming that for the same years, Universal Humanities incurred expenses of only $8,900 for each of those years and had generated income of over $50,000. 

 As a result of Brooks’ misappropriation of donated funds, the intended beneficiaries of the funds did not receive the needed literacy training or assistance.

GABEO Scheme

A second related scheme charged in the indictment alleges that Brooks also diverted charitable donations he solicited on behalf of GABEO and used much of the money to pay personal expenses for himself and his family.   GABEO is an organization of state, county, and municipal elected officials that promotes voter registration, crime prevention, literacy and economic empowerment initiatives.

The indictment alleges that Brooks solicited contributions to GABEO from corporations, organizations and individuals.  When Brooks was elected as GABEO’s President in 1993, the organization already maintained an official bank account at a local bank.  This account was administered by GABEO’s Treasurer, and disbursements required two signatures by GABEO Board members.  In December 1997, Brooks secretly opened a second GABEO bank account at a different bank.  Brooks set himself up as the sole signatory on this account, and had the account statements sent to his address rather than the address of the GABEO Treasurer.   Brooks then deposited the donations he solicited on behalf of GABEO into this undisclosed account, and used much of these funds to pay personal expenses for himself and his relatives.

Between 2002 and 2012, businesses, civic, religious groups and individuals contributed approximately $300,000 to GABEO through Brooks, which he then deposited into the undisclosed GABEO account.  The indictment alleges that Brooks misappropriated donations he solicited on behalf of GABEO from corporations, local teacher unions, small business owners, and individual donors – all of whom relied on Brooks’ assurances that the contributions were intended to further GABEO’s community activities.  The GABEO Board was unaware of this activity and did not approve these transactions.  In fact, the indictment alleges that after Brooks began diverting donations, members of GABEO’s Board of Directors noted the organization’s apparent loss of most of its corporate donations.

The indictment charges that Brooks misappropriated the GABEO funds in much the same manner as the Universal Humanities funds.  The indictment alleges that generally, Brooks deposited funds he solicited on behalf of GABEO into the undisclosed GABEO account, then transferred the funds to his personal account, from which he paid his personal expenses.  While Brooks utilized some of the GABEO donations to pay expenses related to GABEO’s annual meetings, he utilized much of the GABEO funds for personal expenses.

More specifically, the indictment charges that:       

• During the time that Brooks acted as GABEO’s President, a variety of charitable groups, companies and individuals made donations to GABEO through Brooks.  These donors relied on Brooks’ representations that GABEO would use the contributions to defray the costs of the organization’s annual meetings and convention, and to support GABEO’s programs; 

• Brooks made specific false representations to donors about how the solicited funds would be used, claiming that the funds would be used to cover the expenses of annual GABEO meetings, support GABEO crime prevention and child hunger initiatives, voter registration, felon rehabilitation initiatives, and literacy programs.  Donors included Coca Cola ($96,500), Georgia Power ($37,000), the International Brotherhood of Teamsters ($36,000), and others; 

• Additionally, a professional organization of teachers contributed to GABEO through Brooks, relying on his assurances that the funds would go to support GABEO’s annual meetings and convention.  An Atlanta law firm gave to GABEO through Brooks based on his representation that the funds would help fund a children’s school and GABEO’s annual convention.  A bank contributed to GABEO through Brooks based upon his representations that the funds would be used by GABEO to construct a commemorative marker at Moore’s Ford Bridge.  Instead, Brooks deposited these funds into the undisclosed GABEO account that he controlled and then transferred the money to pay to his personal account, ultimately using most of the contributions to pay personal expenses; and

• In November 2011, and May 2012, without the knowledge and consent of GABEO’s Board of Directors, Brooks obtained bank loans on behalf of GABEO.  Brooks told the bank that GABEO intended to use the proceeds of both loans for “Citizenship Education Get Out the Vote” initiatives.  Relying on Brooks’ representations, the bank approved both loans and issued the proceeds to Brooks.  Brooks subsequently used much of the funds to pay personal expenses rather than for GABEO’s education and voter registration programs as he claimed in the loan applications.

By misappropriating GABEO donations for his personal use, Brooks benefitted himself at the expense of both GABEO and the communities most in need of the literacy, crime prevention and voter registration programs for which the funds were intended.

False Tax Returns Charges

Finally, the indictment charges that Brooks substantially underreported his income to the IRS for the years 2007 through 2011.  Despite Brooks’ charged misappropriation of hundreds of thousands in donations to Universal Humanities and GABEO, his tax returns for the years between 2008 through 2011 falsely reported income of only approximately $35,000 annually.   

Overview of the Charges

The indictment charges 30 counts of mail, wire and tax fraud.  The mail and wire fraud charges carry a maximum sentence of 20 years in prison and a fine of up to $250,000.  The tax charges carry a maximum sentence of three years and a fine of up to $100,000.  It is important to note that the sentences imposed may not approach the statutory maximum sentences, as 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 Federal Bureau of Investigation and Internal Revenue Service.

Assistant United States Attorneys Kurt R. Erskine, Richard S. Moultrie, Jr. and Kamal Ghali are prosecuting the case.

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

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

Brooks Indictment

Defendants Allegedly Ran Their Operation from a Buckhead Home

ATLANTA - Steven E. Thompson and Tierra Michelle Waters have been indicted by a federal grand jury on charges of sex trafficking of a juvenile and conspiring to do the same.

“These defendants preyed on a young girl in need requiring her to have sex with men if she wanted to keep a roof over her head,” said United States Attorney Sally Quillian Yates.  “Trafficking children is appalling and unacceptable.  With the help of our partners in the community, we will press on with efforts to reach those who are being exploited, and prosecute those who choose to engage in this inhumane practice.”

“Forced prostitution, especially in the case of children, is a crime that leaves scars long after any physical wounds have healed,” said Brock D. Nicholson, Special Agent in Charge of ICE Homeland Security Investigations in Atlanta. “Thanks to the hard work of HSI special agents, investigators from the Georgia Bureau of Investigation and prosecutors from the U.S. Attorney’s Office, these defendants will be held accountable for their actions before the law.”

According to United States Attorney Yates, the charges and other information presented in court:  Thompson, 42, and Waters, 30, both of Atlanta, Ga., offered the young girl a place to stay at Thompson’s condominium in the Buckhead area of Atlanta.  After the young girl moved in, she was told that she had to earn money for rent, and that she would be required to engage in prostitution.  Thompson and Waters placed advertisements describing the juvenile on Backpage.com, soliciting men to have sex with the young girl either at the condominium or at a place the customer chose.  Some advertisements falsely listed the juvenile as “Sasha” age 19, when in fact she was 17.  Other advertisements showed both Waters and the juvenile, under the name “Naomi”, age 20, requesting a “donation” of $150 an hour. Thompson and Waters also provided marijuana to the juvenile before she had to perform commercial sex acts. 

The indictment charges two counts, one substantive count of sex trafficking of a juvenile by force, fraud or coercion and one count of conspiracy to engage in sex trafficking. The victim is identified in the indictment by her initials.  Each charge carries a maximum sentence of life 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.  Thompson is scheduled for a bond hearing on May 21, 2013 at 11:00 a.m. before United States Magistrate Judge Linda T. Walker.  Waters is scheduled for arraignment on May 31, 2013 at 10:00 a.m. before United States Magistrate Judge Alan J. Baverman.    

This case is being investigated by Special Agents of the Department of Homeland Security and the Georgia Bureau of Investigation.

Assistant United States Attorneys Susan Coppedge and Leslie Abrams are prosecuting the case.

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

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

ATLANTA - C.R. Bard, Inc. has agreed to pay the United States $48.26 million to resolve claims that it knowingly caused false claims to be submitted to the Medicare program for brachytherapy seeds used to treat prostate cancer in violation of the False Claims Act. Bard is a New Jersey based corporation that develops, manufacturers, and markets medical products used for a variety of conditions, including prostate cancer.

 The settlement requires that Bard pay $48.26 million and it resolves claims relating to Bard’s sale of brachytherapy seeds, a form of radiation therapy, to hospitals. The United States alleged that from 1998 to 2006, Bard provided illegal renumeration to customers and physiciansto induce them to purchase Bard’s seedsin violation of the Anti-kickback Statute, 42 U.S.C. § 1320a-7b(b).  The illegal renumeration allegedly took the form of certain grants, guaranteed minimum rebatesconference fees, marketing assistance and/or free medical equipment that Bard paid to customers and/or physicians who used the seeds to perform treatment for prostate cancer.  Hospitals ultimately submitted bills to Medicare for these seeds, which the government alleged were rendered false by Bard’s illegal kickback activity. The government alleged that Bard was liable under the False Claims Act for causing the submission of those false claims. 

Sally Quillian Yates, United States Attorney for the Northern District of Georgia, said, “Illegal kickbacks in any form pervert our health care system, which is designed to insure that health care providers make decisions based solely on what is best for the patient.”

“We will continue to work with our various law enforcement partners in the pursuit of those who abuse publicly funded health care programs such as Medicare and Medicaid, through criminal prosecutions or civil settlements under the False Claims Act,” stated Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office.  “Such abuses as we’ve seen in this case will not be tolerated.”

“Kickbacks, basically no more than bribes, erode trust in the health care system,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General, Atlanta Region.  “Companies paying illegal kickbacks to fatten their bottom lines should be prepared for aggressive investigation and prosecution.”

The civil settlement resolves a lawsuit filed in the U.S. District Court for the Northern District of Georgia by Julie Darity, a former Bard Manager for Brachytherapy Contracts Administration under the qui tam, or whistleblower provisions, of the False Claims Act.  United States ex rel. Darity v. C.R. Bard, Inc., et al., Civ. Action No. 1:06-cv-0208-SCJ (N.D. Ga.). Under the False Claims Act, private citizens may bring suit for false claims on behalf of the United States and share in any recovery obtained by the government.  The former manager will receive $10,134,600 as her share of the civil settlement. 

In addition, pursuant to a Non-Prosecution Agreement with the United States, Bard has agreed to pay an additional $2.2 million and to take numerous remedial steps, many of which the company identified and began to implement prior to the criminal investigation, to enhance its corporate compliance program to prevent similar illegal actions in the future.  For example, Bard has agreed to refine its Code of Conduct and other written policies and procedures that promote Bard’s commitment to full compliance with all Federal health care program requirements and to develop an effective program to monitor medical education grants provided by Bard to ensure compliance with those requirements. 

The resolutions announced today are part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009.  The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.  One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover nearly $10.3 billion since January 2009 in cases involving fraud against federal health care programs.  The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $14.2 billion.
 
These settlements were the result of a coordinated effort by the United States Attorney?s Office for the Northern District of Georgia; the Department of Justice, Civil Division, Commercial Litigation Branch; the Federal Bureau of Investigation, and the Department of Health and Human Services, Office of Inspector General, in investigating the allegations in this case.

The case was prosecuted by Assistant United States Attorneys Neeli Ben-David and Christopher C. Bly. 

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.

Used Hijacked Company Names to File For Fuel Tax Refunds

ATLANTA - Former pilot Charlie Shivers, III, has been sentenced to serve over seven years in federal prison for his role in a tax fraud scheme.

“Tax fraudsters rob not only the government, but honest taxpayers who are paying their fair share,” said United States Attorney Sally Quillian Yates.  The defendant in this case went beyond cheating on his own taxes, to file over a hundred false returns that were totally fictitious, claiming over $35 million in fraudulent fuel tax refunds.  This office is committed to putting tax fraudsters where they belong – behind bars.”

“Today’s sentencing of Mr. Shivers should serve as a stark reminder to others that such greed-based criminal behavior as seen in this case comes with a cost,” stated Veronica Hyman-Pillot, Special Agent in Charge IRS Criminal Investigation.  “Individuals cannot fraudulently enrich their bank accounts at the expense of the United States Treasury and other taxpayers.”

“The United States Secret Service and our law enforcement partners work tirelessly to maintain the taxpayer’s trust in our economic system.  We will continue to combine our investigative capabilities to pursue and arrest offenders who violate this trust,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.

According to United States Attorney Yates, the charges and other information presented in court:  In 2009, 2010, 2011 and 2012, Shivers filed and caused to be filed over 100 fraudulent corporate tax returns, claiming $35 million in refunds for fuel taxes falsely claimed to have been paid on fuel purchased for off-road company vehicles.  The IRS actually paid Shivers and his co-conspirators over $5.6 million from those falsely claimed tax refunds prior to his arrest in May 2012.  The false claims were made in the names of hijacked corporations and shell companies, none of which used off-road vehicles or paid the fuel tax claimed for refund.                                                                   

Shivers, 40, of Atlanta, Ga., pleaded guilty to two counts of filing false claims against the United States on August 9, 2012.  He was sentenced today by United States District Court Judge Thomas W. Thrash to 7 years in prison to be followed by 3 years of supervised release.  He was also ordered to pay $5,630,681.66 in restitution to the United States Treasury. 

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

Assistant United States Attorneys Gale McKenzie and Alana R. Black prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the 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 and the Justice Department in Washington, D.C. have reached a settlement agreement with DeKalb County (GA) School District to resolve the Department’s investigation into allegations of religious and national origin harassment of a Sikh middle school student (“Student”). 

Counsel for the Sikh Coalition filed the complaint with the Department on behalf of the Student, alleging that he had been repeatedly targeted with verbal and physical harassment because of his Sikh faith.  The alleged harassment included claims that a peer had tried to cut the Student’s hair in violation of his religion; that the Student was called "Aladdin" because he wore a turban; that the Student had been told by a peer to “go back to his country”; and that the harassment culminated in a physical altercation with another student. 

The complaint alleged that the school district failed to respond appropriately to numerous incidents, that disciplinary measures had been ineffective in ending the harassment, and that the Student feared continued harassment.  The school district denied the allegations but agreed to work cooperatively with the Department to resolve the complaint and protect the Student.  The Department has authority to investigate and resolve complaints of religious and national origin harassment through its enforcement of Title IV of the Civil Rights Act of 1964. 

The settlement agreement, which will be in effect until the end of the 2014‑2015 school year, requires the school district to work with a consultant to develop and implement anti‑harassment training that addresses religious and national origin bias at both the Student’s middle and high school.  The agreement also requires the district to immediately implement a safety plan for the Student that will ensure that the Student is safe when he is at school and should incidents of harassment occur, that the district responds quickly and effectively to address the incident.  In order to prepare for the Student’s transition to high school, the agreement also requires the school district to meet with the student, his family, and administrators from his middle and high school to identify key school personnel who can support the Student should any incidents of harassment occur at his new school. 

“Every student should be able to attend school without fear of being harassed and bullied because of his skin color or religious beliefs,” said United States Attorney Sally Quillian Yates.  “I am encouraged by DeKalb County’s willingness to take immediate steps to ensure that students attending DeKalb County schools are free of this type of harassment and bullying.”

In Washington D.C., Jocelyn Samuel, Principal Deputy Assistant Attorney General for the Civil Rights Division said, “Students of all faiths must be protected from harassment and other forms of discrimination.  We commend the district for stepping forward and putting student safety first.  We are encouraged by the district’s resolve to support and provide anti-harassment training on issues facing students from the Sikh, Muslim, Arab American and South Asian communities.” 

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

Assistant United States Attorney Aileen Bell Hughes is representing the United States for the Northern District of Georgia 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.

Dix Defrauded the USDA of Over $400,000

ATLANTA - Herbert Dix pleaded guilty today in federal district court to defrauding the U.S. Department of Agriculture and possessing forged Women, Infant and Children (WIC) vouchers.

“Many people rely on government assistance to feed their families and children,” said United States Attorney Sally Quillian Yates.  “This conviction demonstrates our commitment to prosecute those who defraud the USDA of funds meant for the neediest families.”

Karen Citizen-Wilcox, Special Agent-in-Charge of the USDA-OIG said, “The USDA-OIG takes fraud in its nutritional programs very seriously and will work with the Department of Justice and other federal and state law enforcement entities to vigorously investigate and prosecute individuals who defraud USDA programs.  In these economic times, the need for nutritional assistance has increased.  Taxpayers expect their tax dollars to be used effectively and only within the confines of the rules and regulations of nutritional assistance programs.  Trafficking in benefits by purchasing those benefits for cash is illegal.  The OIG is committed to maintaining integrity in the USDA programs and continuing its investigations into these illegal activities.”

“We applaud the difficult work of our law enforcement partners,” said Brenda Fitzgerald, M.D., commissioner of the Georgia Department of Public Health. “Along with DPH’s team of inspectors, law enforcement and the courts have worked tirelessly to identify, investigate, prosecute and eliminate elements of fraud from the state’s WIC program, saving Georgia taxpayers tens of millions of dollars.”

According to United States Attorney Yates, the charges and other information presented in court:  Dix owned and operated a store front grocery in Griffin named Spank’s Quick Stop.  The store was authorized by the State of Georgia to redeem Women, Infant and Children (WIC) vouchers for specified food items, such as infant formula, milk, and cheese.  The Georgia Department of Public Health issues WIC vouchers to low income - at risk families which they can use to purchase specified food items from authorized grocers.  Contrary to federal law and state regulations, Dix and his employees paid cash for the WIC vouchers instead of accepting them as payment for the food items listed on the vouchers.

On 18 separate occasions, an undercover law enforcement officer entered Spank’s Quick Stop where Dix and his employees redeemed blank WIC vouchers for cash.  Dix then filled in an amount on the vouchers significantly greater than what he paid for the vouchers and deposited the vouchers into his bank account.  In December 2010, federal, state and local law enforcement officers executed a search warrant at Spank’s and seized over 100 forged blank WIC vouchers.  An analysis of Dix’s bank records revealed that between 2010 and 2011 Dix defrauded the USDA of in excess of $400,000.

Dix, 49, of Riverdale, Ga., was indicted in July 2012, on 18 counts of WIC fraud and 83 counts of possession of forged securities.  He pleaded guilty to the entire indictment. On Counts One through Eighteen on each count, he could receive a maximum sentence of five years in prison and a fine of up to $25,000.  On Counts Nineteen through One Hundred-One, on each count he could receive a maximum sentence of ten 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 July 17, 2013 at 10:00 a.m., before United States District Judge Timothy C. Batten, Sr.

This case is being investigated by Special Agents of the United States Department of Agriculture, Office of Inspector General, Georgia Department of Public Health, Office of Inspector General, and the Griffin Police Department.

Assistant United States Attorney David Leta 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 – Jeree E. Grey was sentenced today to serve more than seven additional years in federal prison following his conviction by a jury for assaulting the warden of the United States Penitentiary in Atlanta.
 
“Even an isolated act of violence against an employee inside a federal prison places the safety of all prison staff and inmates at risk,” said United States Attorney Sally Quillian Yates.   “In this case, the warden was carrying out his duty to maintain safety, security, and good order at the penitentiary when, without provocation, Inmate Grey attacked him.”

“The federal inmate in this matter will be held accountable for his violent actions,” said Mark F. Giuliano, Special Agent in Charge of the FBI’s Atlanta Field Office. “The FBI remains ready to provide its investigative resources and other assets as needed in assisting the U.S. Bureau of Prisons and their staff in maintaining law and order within U.S. Penitentiary-Atlanta.”

According to United States Attorney Yates, the charge and other information presented during Grey’s trial, on the morning of March 26, 2012, Grey, 33, of Birmingham, Alabama, was walking in a line with other inmates headed to their morning work call in the United States Penitentiary in Atlanta.  Without warning, Grey stepped from the line and struck the warden multiple times, injuring the warden’s face and neck.  At the time of the assault, Grey was serving a ten-year prison sentence for possession with intent to distribute more than five kilograms of cocaine. 

Grey was sentenced before United States District Court Judge Thomas W. Thrash, Jr. to serve an additional seven years, three months in prison to be followed by three years of supervised release.

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

Assistant United States Attorney Brent Alan Gray prosecuted the case.

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

Defendant Manufactured an Improvised Explosive Device

ATLANTA - Mark Young was sentenced today to serve over five years in federal prison on charges of possessing a destructive device by United States District Judge Steven C. Jones.

"The recent tragedy in Boston underscores the havoc a homemade bomb can wreak,” said United States Attorney Sally Quillian Yates.  “We are committed to aggressively prosecuting those who put the safety and security of our citizens at risk by constructing explosives devices.”

“ATF agents, working closely with our local law enforcement partners, arrested a violent individual who posed a significant danger to our community,” said ATF Special Agent in Charge Christopher Shaefer.  “Through this cooperative effort, we were able to stop any potential harm to the citizens of Atlanta, Georgia.”

According to United States Attorney Yates, the charges and other information presented in court:  On or about January 13, 2012, an undercover officer (UC) met with Young and received a sample of what Young referred to as homemade explosives. In the days leading up to this, the UC had received information that Young had manufactured his own “C-4,” which is a type of plastic explosive  The UC called Young, who spoke in “code” over the phone and said he had made something he was willing to give the UC a free sample of. Young then met the UC in a mall parking lot and provided the UC with an unknown substance on a paper plate. Young described the substance as being capable of making an explosion that would be similar to a few “M-80’s going off.”  Young added that the amount he gave to the UC could blow up a car if the UC used it as a “shape charge on the gas tank.”

In February 2012, Young told the UC that he had made a new batch of C4. Young sold the UC the new material through a middleman, and ATF chemists determined that it was an explosive.  Next, on April 2, 2012, Young told the UC that he had made a new bomb.  Young met the UC wearing a ballistic vest and had a .44 caliber Smith & Wesson revolver sitting on his lap. Young sold the UC the bomb for $750. He was then arrested, and the bomb was rendered safe.  ATF determined that the bomb was in fact an IED (Improvised Explosive Device).    

Young, 46, of Cobb County, Ga., was sentenced to five years, three months in prison to be followed by three years of supervised release.  Young was convicted of these charges on February 27, 2013, after he pleaded guilty.

This case was investigated by Special Agents of the Bureau of Alcohol, Tobacco, Firearm and Explosives and members of the Atlanta Police Department.

Assistant United States Attorney Stephanie Gabay-Smith prosecuted the case.

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

ATLANTA –Hamza Bendelladj, an Algerian national also known as “Bx1,” will be arraigned on Federal cybercrime charges for his role in developing, marketing, distributing, and operating the malicious computer virus “SpyEye.” 
 
“No violence or coercion was used to accomplish this scheme, just a computer and an Internet connection,” said United States Attorney Sally Quillian Yates.  “Bendelladj’s alleged criminal reach extended across international borders, directly into victims’ homes.  In a cyber-netherworld, he allegedly commercialized the wholesale theft of financial and personal information through this virus which he sold to other cybercriminals.  Cybercriminals take note; we will find you.  This arrest and extradition demonstrates our determination to bring you to justice.”

“Hamza Bendelladj has been extradited to the United States to face charges of controlling and selling a nefarious computer virus designed to pry into computers and extract personal financial information,” said Acting Assistant Attorney General Mythili Raman.  “The indictment charges Bendelladj and his co-conspirators with operating servers designed to control the personal computers of unsuspecting individuals and aggressively marketing their virus to other international cybercriminals intent on stealing sensitive information.  The extradition of Bendelladj to face charges in the United States demonstrates our steadfast determination to bring cybercriminals to justice, no matter where they operate.”

“The FBI has expanded its international partnerships to allow for such extraditions of criminals who know no borders,” stated Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office. “The federal indictment and extradition of Bendelladj should send a very clear message to those international cybercriminals who feel safe behind their computers in foreign lands that they are, in fact, within reach.”

Bendelladj, 24, was indicted by a Federal grand jury in Atlanta, GA. on December 20, 2011.  The 23-count indictment charges him with one count of conspiring to commit wire and bank fraud, ten counts of wire fraud, one count of conspiracy to commit computer fraud, and 11 counts of computer fraud.  Bendelladj was apprehended at Suvarnabhumi Airport in Bangkok, Thailand, on January 5, 2013, while he was in transit from Malaysia to Egypt.  The indictment was unsealed on May 1, 2013.  Bendelladj was extradited from Thailand to the United States on May 2, 2013, and will be arraigned in United States District Court before United States Magistrate Judge Janet F. King.

According to court documents, the SpyEye virus is malicious computer code or “malware,” which is designed to automate the theft of confidential personal and financial information, such as online banking credentials, credit card information, usernames, passwords, PINs and other personally identifying information.  The SpyEye virus facilitates this theft of information by secretly infecting victims’ computers, enabling cybercriminals to remotely control the computers through command and control (C&C) servers.  Once a computer is infected and under the cybercriminals’ control, a victim’s personal and financial information can be surreptitiously collected using techniques such as “web injects,” which allow cybercriminals to alter the display of web pages in the victim’s browser in order to trick them into divulging personal information related to their financial accounts.  The financial data is then transmitted to the cybercriminals’ C&C servers, where criminals use it to steal money from the victims’ financial accounts. 

The indictment alleges that from 2009 to 2011, Bendelladj and others developed, marketed and sold various versions of the SpyEye virus and component parts on the Internet and allowed cybercriminals to customize their purchases to include tailor-made methods of obtaining victims’ personal and financial information.  Bendelladj allegedly advertised the SpyEye virus on Internet forums devoted to cybercrime and other criminal activities.   In addition, Bendelladj allegedly operated C&C servers, including a server located in the Northern District of Georgia, which controlled computers infected with the SpyEye virus.  One of the files on Bendelladj’s C&C server in the Northern District of Georgia allegedly contained information from approximately 253 unique financial institutions.

If convicted, Bendelladj faces a maximum sentence of up to 30 years in prison for conspiracy to commit wire and bank fraud; up to 20 years for each wire fraud count; up to five years for conspiracy to commit computer fraud; up to five or ten years for each count of computer fraud; and fines of up to $14 million dollars.

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 Federal Bureau of Investigation.

Special Assistant United States Attorney Nicholas Oldham and Assistant United States Attorney Scott Ferber of the Northern District of Georgia, and Trial Attorney Carol Sipperly of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case.  Valuable assistance was provided by the Criminal Division’s Office of International Affairs, which worked with its international counterparts to effect the extradition.

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.

Victims Were Two Girls in Defendant’s Care

GAINESVILLE, Ga.  – Michael Cannon, II, was arraigned today on charges that he produced, distributed, and received child pornography.  The indictment was returned by a federal grand jury on April 9, 2013.

“Photographing molestation and trading the images over the Internet with like-minded individuals in exchange for more child pornography is horrendous,” said United States Attorney Sally Quillian Yates.  “Child pornography robs children of their innocence.  It also places a permanent record of the victimization of these children on the internet.  To make matters even worse, in this case the two girls were in the defendant’s care.  Law enforcement officers have identified and rescued the children, and the defendant will now have to answer for participating in this cycle of victimization.”

“While HSI special agents are working around the clock and around the world to drain the cesspool that is child pornography, the identification and rescue of victims suffering at the hands of depraved child predators is of the highest priority,” said Brock D. Nicholson, Special Agent in Charge of Homeland Security Investigations, Atlanta. “Every single law enforcement agency in this country is absolutely dedicated to hunting down these predators and holding them accountable for their despicable actions. I strongly encourage citizens everywhere to do their part to help protect our innocent children by reporting any signs of abuse they witness. It will take the collective efforts of law enforcement and members of our communities to successfully bring these monsters to justice.”

According to United States Attorney Yates, the charges and other information presented in court:  In mid-December 2012, Cannon, 33, of Gainesville, Ga., allegedly posted several images of a 10-year-old girl on a foreign-based website where people could post and share photographs.  At least one of the images was child pornography.  Several individuals posted comments on Cannon’s photographs and asked about trading photos. According to the information presented in court, Cannon gave them his e-mail address and, when they wrote him, he sent them explicit photographs showing him in the act of molesting two young girls.  In return, he received dozens of e-mails containing images and videos of other children being sexually abused.  As part of their investigation, special agents determined the true identities of the two minor victims that Cannon is alleged to have .photographed and posted online.

The charge of producing child pornography carries a mandatory minimum period of confinement of 15 years and a maximum sentence of 30 years in prison.  The charge of receiving child pornography carries a mandatory minimum confinement period of 5 years and a maximum term of 20 years in prison.  The charge of possessing child pornography carries a maximum sentence of 10 years in prison.  Each charge carries a fine of up to $250,000 and a period of supervised release from 5 years to life.  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 indictments only contain charges.  The defendants are presumed innocent of the charges and it will be the government’s burden to prove each defendant’s guilt beyond a reasonable doubt at trial.

These cases are 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.

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

Assistant United States Attorney Paul R. Jones 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 Ran an Interstate Prostitution Ring Involving a Juvenile

ATLANTA - Jessica Loren Posey was sentenced today to serve over seven years in federal prison for transporting a 16-year-old juvenile girl to Tennessee, Kentucky, and Ohio for the purpose of prostitution.

“Child sex trafficking is an horrific crime committed by both men and women,” said United States Attorney Sally Yates.  “This defendant had no regard for the vulnerability of her victim and lured her into a quick-money lifestyle that led to the juvenile’s repeated sexual exploitation.  Human traffickers should take note:  You will be found and prosecuted for your role in sexual exploitation.”

“The FBI will continue to make those who engage in human trafficking a priority for investigation and prosecution,” stated Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office.  “Today’s sentencing of defendant Posey should provide some solace for those whom she victimized in that she has now been taken off the streets.”

According to United States Attorney Yates, the charges and other information presented in court:  In or about April 2010, Posey met the juvenile girl at a party.  While the victim was only 16 years old, Posey caused her to engage in prostitution.  To facilitate the girl’s commercial sex acts, Posey used a laptop computer to create advertisements of the child that she placed on websites, including backpage.com; uploaded nude photographs of the juvenile on her cell phone and on a website that Posey created; arranged for customers to engage in sex acts with the victim; and rented the hotel rooms where she caused the girl to engage in prostitution.  Posey also drove the juvenile, and other young women, to various locations outside Georgia to commit commercial sex acts, including Chattanooga and Knoxville, Tennessee, Ohio and Kentucky.  Posey received one half of the proceeds earned by the juvenile victim and the other young women.  Following Posey’s arrest, the victim returned to live with her family.

Posey, 25, of Atlanta was sentenced by United States District Judge Richard W. Story to seven years, three months in prison to be followed by five years of supervised release.  She was also ordered to pay restitution in the amount of $1,200 to the minor victim, perform 100 hours of community service, and register as a sex offender.    Posey was convicted of these charges on February 6, 2013, following her entry of a guilty plea.

This case was investigated by Special Agents of the Federal Bureau of Investigation (FBI) with assistance from the FBI’s Metro Atlanta Child Exploitation Task Force, including the Atlanta Police Department, Gwinnett County Police Department, City of Marietta Police Department, Fulton County Police Department, Clayton County Police Department, and the Sandy Springs Police Department. 

If anyone has any information about human trafficking, they are encouraged to report the information to the FBI at 404-679-9000.

Assistant United States Attorneys Susan Coppedge and Richard Moultrie 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 - Federal inmates Donald R. Lafond, Jr., and Jason Robert Widdison, have been indicted for the 2011 murder of a fellow prisoner at the United States Penitentiary in Atlanta, Ga.  

“Offenders who commit violent acts like this must be prosecuted to the fullest extent of the law,” said United States Attorney Sally Quillian Yates. “The Department of Justice and its Bureau of Prisons endeavors to protect the life and safety of every federal inmate.  We remain vigilant and will do everything we can to ensure that prisons are as safe as possible for every inmate and employee.”

According to United States Attorney Yates, the charges and other information presented in court, on March 1, 2011, Lafond, 52, and Widdison, 34, were exercising inside the prison’s special housing unit recreation area.  The victim, a fellow inmate, joined the defendants in the area and attempted to make conversation and walk around with them. 

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

Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “The basic civil liberties of the victim federal inmate in this case were absolutely ignored by fellow inmates Lafond and Widdison and that will not be ignored by federal authorities.  The FBI will continue to provide investigative assistance and other assets as needed in assisting the U.S. Bureau of Prisons maintain order within U.S. Penitentiary- Atlanta.”

Lafond and Widdison appeared today in federal court in Atlanta before United States Magistrate Judge Janet F. King.  The indictment charges that the defendants, aided and abetted by one another and with malice aforethought, killed the victim by punching and stomping him.  The charge carries a maximum sentence of life in prison and a maximum 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 sentence ranges for most offenders. 

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

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

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 Filed Over 5,000 False Claims for “Stimulus Money”

ATLANTA – Mauricio Warner has been indicted by a federal grand jury for stealing the identities of thousands of individuals to file federal tax returns claiming over $6 million in bogus refunds. 

 “This defendant and identity thieves like him steal millions in taxpayer dollars every year,” said United States Attorney Sally Quillian Yates.  “We have seen a decided trend in identity thieves turning to phony IRS refunds instead of more traditional credit card fraud schemes, and have allocated increased resources to reverse this trend.  Our office will continue to protect the citizens of this district, bring fraudsters to justice, and return the stolen money to the U.S. Treasury.”

“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 approximately January 2011 to April 2012, Warner, 37, of Smyrna, Ga., allegedly filed over 5,000 false tax returns using the names and social security numbers of unsuspecting victims.  Victims were told they could submit an application for a “stimulus payment” or “Free Government Money” by providing their names and social security numbers.  It is alleged that in some instances, he used toll-free telephone numbers to collect victims’ personal identifying information.  Warner then used the victims’ names and social security numbers to claim millions of dollars in fraudulent refunds.  The victims did not know tax returns were being filed in their names.

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

Warner was arraigned in front of United States Magistrate Judge Linda T. Walker yesterday on the charges.  The indictment charges 16 counts of wire fraud, 16 counts of aggravated identity theft, 16 counts of filing false claims, and 2 counts of money laundering.  Each wire fraud count carries a maximum sentence of 20 years in prison, each false claim count carries a maximum sentence of 5 years in prison, and each money laundering count carries a maximum sentence of 10 years in prison.  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.  The United States is also seeking the forfeiture of all funds derived from or involved in this scheme. 

In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.

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

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

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 the defendant’s guilt beyond a reasonable doubt at trial.

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 - Late Tuesday a federal grand jury returned a superseding indictment of DeMarco Doxie adding 26 counts of wire fraud relating to theft from his former employer.  He was first indicted last month on 21 counts of mail fraud.

“While entrusted with an important position in his company, this defendant took advantage of and violated his employer’s trust, using his position to embezzle money on a routine basis over a long period of time,” said United States Attorney Sally Quillian Yates.  “People who brazenly steal from their employers in this manner should expect to be held accountable.”

According to United States Attorney Yates, the charges and other information presented in court:  Doxie, 43, of Peachtree City, Ga., served as the Corporate Environmental Health & Safety Manager for Ennis Paint (currently known as Ennis-Flint).  Ennis, headquartered in Dallas, Texas, manufactures and sells a variety of road marking and pavement surface treatments. Doxie worked at a facility Ennis maintains in Atlanta.

During more than four years of his employment, from June 2007 through August 2011, Doxie used Outlook Environmental & Safety Solutions, LLC - a sham business that he created and owned - as his main vehicle to systematically embezzle large sums of money from Ennis.  Beginning in June 2007, Doxie created and submitted fictitious invoices for environmental work that Outlook had supposedly performed for Ennis.  Doxie knew the work had not been performed and that there were no Outlook employees.  Ennis was never informed that Doxie was the actual owner of Outlook, and would never have paid the invoices had it known.

The superseding indictment further charges that Doxie also defrauded Ennis by using an American Express Corporate Card issued by Ennis that was supposed to be used for Ennis’ expenses.  Doxie used the American Express company credit card to make payments to Outlook even though Outlook had not performed any work for Ennis.  Ennis paid the monthly bill on Doxie’s Corporate American Express card.  Ennis would not have approved the payments had it known that Doxie was the true owner of Outlook. 

In total, Doxie received more than $700,000 from Ennis as a result of his fraud schemes.

The indictment charges 21 counts of mail fraud and 26 counts of wire fraud.  Each count carries a maximum sentence of 20 years in prison and a fine of up to $250,000.  In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.

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

Assistant United States Attorney Glenn D. Baker is prosecuting the case.

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

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

ATLANTA – Ralph Clark pleaded guilty today to embezzling more than $1.1 million from the Woodruff Arts Center while serving as Woodruff’s Director of Facilities.

“The Woodruff Arts Center is an important part of the fabric of our community,” said United States Attorney Sally Quillian Yates.  “This defendant embezzled over $1 million from funds intended for the benefit of our citizens.”

"Mr. Clark chose to violate his position of trust at the Woodruff Arts Center,” stated Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office.  “In addition, he violated federal law by attempting to profit through arrangements with various contracted vendors.  The FBI will continue to provide assistance and investigative resources in such matters that negatively impact our non-profit, cultural institutions such as the Woodruff Arts Center.”

According to United States Attorney Yates, the charges and other information presented in court:  In June 2006, Clark was promoted to Director of Facilities at the Woodruff Arts Center.  He had been acting in this capacity for several months before he was promoted.  His duties included ensuring that the Arts Center was properly maintained.  As Director of Facilities, he was authorized to approve vendor contracts up to $50,000.  While carrying out these duties between November 2005 and October 2012, Clark embezzled more than $1.1 million from the Woodruff Arts Center.

Clark embezzled the money by submitting invoices for bogus expenses to Woodruff Arts Center’s accounts payable department. The bogus invoices included invoices from his wife’s business – Lowe’s Services – which was an apartment cleaning business set up by his wife in 2003.   The bogus Lowe’s Services invoices were for goods and services that were never provided to the Woodruff Arts Center, or were performed by Clark himself.  After the accounts payable department received the invoice, they generated checks from their checking account at SunTrust Bank.  Clark would then pick the checks up in person, and deposit them into accounts on which he had signatory authority. 

Clark also defrauded the Woodruff Arts Center by requiring another vendor who provided maintenance services to pay him kickbacks based on inflated invoices.  Clark told the vendor that in order for him to get future work he would have to inflate invoices Clark ultimately submitted to Woodruff Arts Center by 30%, and then give that 30% back to Clark. 

Clark, 42, of Ellenwood, Ga., could receive a maximum sentence of ten years in prison and 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. 

Sentencing is scheduled for August 7, 2013, at 2:30 p.m. before United States District Judge Julie E. Carnes.

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

Assistant United States Attorney Bernita B. Malloy is prosecuting the case.

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

ATLANTA – Ralph Clark pleaded guilty today to embezzling more than $1.1 million from the Woodruff Arts Center while serving as Woodruff’s Director of Facilities.

“The Woodruff Arts Center is an important part of the fabric of our community,” said United States Attorney Sally Quillian Yates.  “This defendant embezzled over $1 million from funds intended for the benefit of our citizens.”

“Mr. Clark chose to violate his position of trust at the Woodruff Arts Center,” stated Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office.  “In addition, he violated federal law by attempting to profit through arrangements with various contracted vendors.  The FBI will continue to provide assistance and investigative resources in such matters that negatively impact our non-profit, cultural institutions such as the Woodruff Arts Center.”

According to United States Attorney Yates, the charges and other information presented in court:  In June 2006, Clark was promoted to Director of Facilities at the Woodruff Arts Center.  He had been acting in this capacity for several months before he was promoted.  His duties included ensuring that the Arts Center was properly maintained.  As Director of Facilities, he was authorized to approve vendor contracts up to $50,000.  While carrying out these duties between November 2005 and October 2012, Clark embezzled more than $1.1 million from the Woodruff Arts Center.

Clark embezzled the money by submitting invoices for bogus expenses to Woodruff Arts Center’s accounts payable department. The bogus invoices included invoices from his wife’s business – Lowe’s Services – which was an apartment cleaning business set up by his wife in 2003.   The bogus Lowe’s Services invoices were for goods and services that were never provided to the Woodruff Arts Center, or were performed by Clark himself.  After the accounts payable department received the invoice, they generated checks from their checking account at SunTrust Bank.  Clark would then pick the checks up in person, and deposit them into accounts on which he had signatory authority. 

Clark also defrauded the Woodruff Arts Center by requiring another vendor who provided maintenance services to pay him kickbacks based on inflated invoices.  Clark told the vendor that in order for him to get future work he would have to inflate invoices Clark ultimately submitted to Woodruff Arts Center by 30%, and then give that 30% back to Clark. 

Clark, 42, of Ellenwood, Ga., could receive a maximum sentence of ten years in prison and 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. 

Sentencing is scheduled for August 7, 2013, at 2:30 p.m. before United States District Judge Julie E. Carnes.

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

Assistant United States Attorney Bernita B. Malloy is prosecuting the case.

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

ATLANTA - Keith Wade was sentenced in federal court today to serve over 16 years in federal prison after a jury found him guilty on September 27, 2012, of possession of ammunition by a convicted felon.   

“This seventeen-time felon has been victimizing the citizens of Georgia for over 20 years, committing crime after crime, many of which involved firearms,” said United States Attorney Sally Quillian Yates.  “Assault weapons and high capacity magazines in the hands of convicted felons like the defendant threatens the safety of law enforcement and the citizens of Georgia.”

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

According to United States Attorney Yates the charges and other information presented in court or contained in public documents: Wade was on parole when his parole officer received a call from a person who wished to remain anonymous.  The caller stated that the defendant was threatening him and his girlfriend.  The girlfriend had dated Wade at one time.  The caller told the defendant’s parole officer that Wade had made threatening phone calls, sent threatening text messages, and had driven past the caller’s house several times.  The caller forwarded one of the text messages, which included a picture of the defendant holding an assault rifle.

On December 29, 2010, the defendant’s parole officer, along with Special Agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, conducted a search of the defendant’s residence in College Park, Ga.  During the search, officers found two fully loaded assault rifle magazines containing 60 rounds of 7.62 mm ammunition and a box containing 24 rounds of 9 mm ammunition.  Because he was a convicted felon, Wade was prohibited from possessing ammunition.

Prior to Wade’s arrest in December 2010, he had been convicted of at least 17 felonies, including drug-related convictions, theft, and several violent felonies.  The defendant’s violent felony convictions include felony obstruction of law enforcement, battery, and attempted armed robbery. 

Wade, 43, of College Park, Ga. was convicted of violating Title 18, United States Code, Sections 922(g) and 924(e), and sentenced before Senior United States District Court Judge Willis B. Hunt, Jr. to serve 16 years, 3 months in prison to be followed by five years of supervised release.  Because this conviction was rendered after the defendant sustained three prior violent felonies, the law required a mandatory minimum confinement period of 15 years in prison and a fine of up to $250,000.

This case was investigated by Special Agents of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Georgia Board of Pardons and Paroles.

Assistant United States Attorney Leslie J. Abrams prosecuted the case.

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

First Convictions in Georgia for Violations of the
Sexual Orientation Section of the Federal Hate Crimes Law

ATLANTA – Christopher Cain and Dorian Moragne both of Atlanta, Ga., pleaded guilty today in federal court before Senior United States District Judge J. Owen Forrester to beating a man because of his sexual orientation. 

“Violence against another person because of his or her sexual orientation has no place in our civilized society,” said United States Attorney Sally Quillian Yates.  “The citizens of this district should know that we are committed to aggressively prosecuting hate crimes.”

“Hate-fueled violence will not be condoned,” said Roy L. Austin Jr., Deputy Assistant Attorney General for the Civil Rights Division. “The Justice Department will use all the tools in our law enforcement arsenal to investigate and prosecute hate crimes.”

“The FBI remains committed to ensuring the civil rights of all individuals, to include those singled out and attacked because of their perceived differences,” stated Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office.  “These acts of violence should be reported and aggressively investigated to ensure that we send a clear message that these actions will not be tolerated.”

According to United States Attorney Yates, the charges and other information presented in court:  On February 4, 2012, Cain, 19, Moragne, 21, and a juvenile, all associated with the Jack City street gang, targeted a 20-year-old gay man as he left a grocery store located in Atlanta’s Pittsburgh neighborhood.  Cain punched the victim in the head and pushed him to the ground.  Cain, Moragne and the juvenile surrounded the victim and repeatedly punched and kicked him while the group yelled anti-gay epithets, including “No f****** in Jack City.”  Moragne then picked up a tire and struck the victim with it.  The group also stole the victim’s cell phone.  A fourth person, also with the defendants, recorded the assault using a cell phone. The video footage was posted to the Internet. 

Cain and Moragne admitted to violating the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act, which expanded federal jurisdiction to include certain assaults motivated by the victim’s sexual orientation.  The federal hate crimes law criminalizes certain acts of violence motivated by a victim’s actual or perceived race, color, national origin, religion, sexual orientation, disability, gender or gender identity.  This case is the first in Georgia to charge a violation of the sexual orientation section of the federal hate crimes law. 

Last year, Cain, Moragne and the juvenile, who was considered an adult under Georgia law, were prosecuted in Fulton County Superior Court for offenses that did not include a hate crime.  In State court, Cain and Moragne were sentenced to a term of imprisonment of ten years suspended upon the service of five years.  As part of their plea agreement, Federal prosecutors recommended that their Federal and State sentences run concurrently.

This case is being investigated by Special Agents of the Federal Bureau of Investigation and Detectives with the Atlanta Police Department. 

The case is being prosecuted by Assistant United States Attorney Brent Alan Gray and Trial Attorney Nicole Lee Ndumele of the Justice Department’s Civil Rights Division.

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.

Defendant Deported Three Times Previously

ATLANTA - Rogelio Lopez-Velasquez has been indicted by a federal grand jury for the offense of illegal re-entry after deportation and being found in the United States without admission or parole.   

“Our officers work diligently with prosecutors from the U.S. Attorney’s Office for the Northern District of Georgia to hold accountable aliens who show such flagrant disregard for our nation’s immigration laws,” said Felicia S. Skinner, field office director of U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) field office in Atlanta. “Aliens who consider illegally re-entering the United States after removal should know we are serious about prosecuting them for this felony offense. Their very illegal presence in the United States provides all of the evidence we need.” Skinner oversees ERO operations in Georgia and the Carolinas.

According to United States Attorney Yates, the charge and other information presented in court: ICE agents encountered Lopez-Velasquez, 29, of Oaxaca, Mexico, on January 15, 2013, in Gwinnett County, Ga.  After a background check, agents determined that Lopez-Velasquez, who initially gave a false name of “Rogelio Santiago-Lopez,” had been deported from the United States on three prior occasions between September 2007, and November 2011.  His most recent deportation resulted from a June 14, 2011, conviction for illegal entry in the District of Arizona, Tucson Division.

The indictment alleges one count of illegal re-entry after deportation.  The charge carries a maximum sentence of two years in prison, a fine of up to $250,000, and a period of supervised release of up to one year.  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 Deportation Officers of the Department of Homeland Security, Immigration and Customs Enforcement’s - Enforcement and Removal Operations.

Special Assistant United States Attorney Njeri B. Maldonado is prosecuting the case.

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

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

Defendant Refused to Surrender for Service of Sentence

ATLANTA - Bandele Adekunle Adeneye has been indicted by a federal grand jury on charges of escape and bail jumping for failing to report to prison seventeen years ago.

“Those who flee to avoid serving their sentence should understand that they will be found and brought to justice,” said United States Attorney Sally Quillian Yates.

“This arrest should send a message to all federal fugitives that the United States Marshals Service never stops looking for you regardless of how long you have been on the run,” said Beverly Harvard, United States Marshal for the Northern District of Georgia.

According to United States Attorney Yates, the charges and other information presented in court:  The United States Postal Service arrested Adeneye in 1994 for theft and possession of stolen mail in the Northern District of Georgia. Adeneye pleaded guilty to the unlawful possession of stolen mailbox keys, was sentenced to serve two years in federal prison, and ordered to pay more than $89,000 in restitution to the victims of his crimes.

In September 1995, Adeneye disregarded the court’s direction to either turn himself in to the U.S. Marshals in Atlanta, Ga., or to report to the Federal Correctional Institution in Tallahassee, Fla.  Instead he fled, avoiding custody for nearly two decades.

Adeneye, a 45-year-old foreign-born national, avoided capture for 17 years after he fled Georgia by assuming a new identity and relocating to a different part of the United States.  He remained a fugitive until several Deputy U.S. Marshals conducted an intensive investigation, reviewing and re-analyzing every known aspect of Adeneye’s life. Their careful work led them to someone who they believed to be Adeneye living in Reynoldsburg, Ohio, under a fictitious name.  Once the Deputy U.S. Marshals positively identified this person was Adeneye, they requested assistance from the Southern Ohio Fugitive Apprehension Strike Team (SOFAST) who arrested Adeneye within 48 hours.

The indictment charges Adeneye with escape and bail jumping.  The charges carry a maximum sentence of 10 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.

This case is being investigated by the United States Marshals Service.

Assistant United States Attorney William R. Toliver and Special Assistant United States Attorney Uchenna Ekuma-Nkama are prosecuting the case.

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

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

ROME, Ga. – Joshua L. Greeson pleaded guilty today to obstructing a pending public corruption and civil rights investigation by tampering with a witness while employed as a deputy with the Murray County Sheriff’s Department.
           
“The criminal justice system is based on the premise that police officers must be honest and truthful above all,” said United States Attorney Sally Quillian Yates.  “Mr. Greeson wasn’t and such conduct cannot stand.  This investigation is continuing and we will follow the evidence wherever it leads.”

"Such conduct as described in this case cannot be tolerated and the FBI will continue to identify, investigate, and bring forward for prosecution those officers who betray the public's trust," said Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office

“Those who are entrusted with upholding and enforcing the law must have honesty and integrity,” said GBI Director Vernon M. Keenan.  “The GBI will continue to work with our federal law enforcement counterparts to insure those in a position of trust are held accountable.”

According to United States Attorney Yates, the charges and other information presented in court, in August 2012, Greeson, was employed with the Murray County Sheriff’s Office as a Deputy Sheriff.  On August 14, 2012, he conducted a traffic stop of a white Dodge vehicle.  During the traffic stop, Greeson found methamphetamine in a metal can hidden under the tire well of the car.  After locating the drugs, Greeson arrested the driver and the owner of the vehicle – who at the time was the front seat passenger. 

On August 15, 2012, Greeson met with a state court judge to obtain a search warrant for the urine of the owner of the white Dodge vehicle.  During the meeting, Greeson stated to the judge, in sum and substance, that he had not received any prior information about the white Dodge vehicle prior to stopping it.

Shortly thereafter, the Georgia Bureau of Investigation (“GBI”) received information that the drugs had been planted on the vehicle by another individual in an attempt to falsely inculpate the owner of the white Dodge.  As a result of that information, the local district attorney’s office dismissed the charges against the owner of the white Dodge.

GBI agents interviewed Greeson on August 23, 2012, in connection with an investigation of public corruption and civil rights violations. During the interview, Greeson again falsely stated to the GBI agents that he had not received any information about the white Dodge car before he pulled it over.

Greeson met with the GBI for a second interview on August 27, 2012.  During this meeting, Greeson admitted to the GBI that he had lied – admitted that prior to stopping the white Dodge he had, in fact, been provided with information that the vehicle was supposed to be carrying drugs.

On August 29, 2012, Greeson was terminated from the Murray County Sheriff’s Office.

Greeson, 26, of Murray County, Georgia, could receive a maximum sentence of 20 years in prison and 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. 

Sentencing is scheduled for June 28, 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.

 Accused of Using School to Issue Fraudulent Student Visas

ATLANTA – The head of College Prep Academy in Duluth, Ga. and other school officials have been indicted on charges of conspiring to bring illegal aliens into the country and issuing them fraudulent immigration documents. 

 “These defendants are charged with using a student visa program as a front to cashing in on bringing immigrants here to work in local bars,” said United States Attorney Sally Quillian Yates.  “From manufacturing false documents, to charging thousands of dollars in tuition payments to maintain the immigrants on their rolls, the defendants are charged with subverting the purpose of the student VISA program for profit.”

“Granting access to American schools to foreign students enriches both the student and the United States,” said Brock D. Nicholson, special agent in charge of Homeland Security Investigations, Atlanta. “Protecting the integrity of that system from fraud and abuse is an important part of our overall enforcement of immigration law.”

“The FBI remains a key law enforcement partner with respect to the ongoing and continued efforts to enforce immigration laws,” said Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office.  Those individuals who systematically abuse our generous system that provides for higher education within the U.S. should rightly be a focus of those law enforcement efforts.”

According to United States Attorney Yates, the charges and other information presented in court; Dong Seok Yi, 52, of Duluth, Ga., is the President and CEO of the English language school named College Prep Academy.  He also owns the Korean Times Atlanta, a newspaper company.  In 2009, Yi filed an application with the U.S. Department of Homeland Security, Student and Exchange Visitor Program, and obtained approval for College Prep Academy to enroll foreign-born students and issue I-20 forms, which enables students to stay in the United States.  Foreign-born students who are issued I-20s from universities and other institutions of higher education can get F-1 student visas permitting them to remain in the United States during the time of their schooling.

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

Co-defendant Sook An Kil, a/k/a Stacy Kil, 41, of Duluth, Ga., who is the Academic Coordinator and Designated School Official for College Prep Academy, signed the I-20s under penalty of perjury.  She also certified in the Student and Exchange Visitor Information System, a computerized system maintained by the Department of Homeland Security, that College Prep Academy’s “students” were active and attending class even though most never attended.  Student and Exchange Visitor Information System records show that the school claimed enrollment of up to 100 students when less than half that number were attending class.  Many simply began living and working in the country after obtaining a student visa from College Prep Academy.

Yi and co-defendant Chang Seon Song, 51, of Suwanee, Ga., the Academic Director for CPA, referred individuals to another co-defendant, Sang Houn Kim a/k/a Chris Park, 53, of Diamond Bar, Calif., to obtain false documents to support their F-1 visa applications.  Kim allegedly manufactured and provided fraudulent passports, I-94 forms, school transcripts, bank statements, family registries, and other false documents to illegal immigrants to use in support of applications for F-1 visas.  Kim charged the aliens thousands of dollars for the fraudulent documents.  Yi and College Prep Academy profited by charging thousands in quarterly tuition payments for maintaining the immigrant on the student rolls.

A federal grand jury indicted the defendants on March 5, 2013, and returned a superseding indictment against them on April 2, 2013.  Federal agents also executed a federal search warrant at the school this morning and seized bank accounts associated with the school.

The indictment charges one count of conspiracy and eight counts of making false statements in immigration documents.  The conspiracy count carries a maximum sentence of five years in prison, and each false statement count carries a maximum sentence of ten years in prison.  Each count 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.

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

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

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

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

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.

Hill Made Millions Reselling Stolen Merchandise Acquired From Identity Thieves

ATLANTA – Robert A. Hill was sentenced today to serve over seven years in federal prison for selling over $9 million in stolen property from his eBay store and shipping the goods across state lines to his customers. 

“Robert Hill fueled his Internet-based fraud with the help of a group of identity thieves who gave him a steady supply of merchandise,” said United States Attorney Sally Quillian Yates.  “His use of the Internet expanded his reach and magnified the crime, ending in millions of dollars of damage to both individual victims and retailers.  Today’s prison sentence does justice for the widespread damage he caused.”

“The defendant’s criminal actions reflect how advancements in digital technology can also have a negative effect on our communities.  The Secret Service, in conjunction with our law enforcement partners, will continue to actively investigate and arrest those that commit crimes that prey on unsuspecting victims,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.

“This case demonstrates the ever-increasing need for law abiding citizens to remain vigilant about their personal identifying information and credit profiles,” said Cherokee County Sheriff Roger Garrison.  “The ongoing increase of identity related crimes is concerning and troubling both to the economy and the criminal justice system.  The Cherokee Sheriff’s Office is proud to see justice on behalf of the many victims in this case.”

According to United States Attorney Yates, the charges and other information presented in court:  For over ten years through December 2011, Hill operated a scheme out of Roswell, Ga. that involved shipping stolen merchandise across state lines.  Hill had an eBay store called atlantis_discount_ warehouse_llc, where he sold the merchandise online to buyers from across the United States.  To get merchandise for sale, Hill worked with a group of identity thieves who used fraudulent credit cards opened in the names of numerous identity theft victims to buy expensive items, such as iPads, iPods, iPhones, computers, Wii game systems, cameras, golf clubs, and tools, from large retail stores.  These co-conspirators used fake drivers’ licenses to apply for new credit cards and take over existing accounts at the stores.  They targeted accounts at Best Buy, Sam’s Club, Home Depot, Lowe’s, Walmart, Target, and Dick’s Sporting Goods.

Hill then bought the items from his co-conspirators for about 60% of their retail value, knowing that the merchandise had been stolen and obtained by fraud.  He sometimes gave the thieves lists of items that he needed for his eBay store.  Hill stored the merchandise at a storage facility in Alpharetta, Ga.  He sold it at just under retail value to buyers from around the United States.  As part of the scheme, he shipped items to buyers in numerous states, including California, New York, Florida, New Hampshire, Indiana, Maryland, Colorado, North Carolina, Michigan, Illinois, Washington, Virginia, Utah, and Maine. 

During the course of the scheme, Hill sold millions of dollars’ worth of stolen merchandise through his eBay store.  Search warrants executed at his residence and storage facility uncovered over $44,000 in cash and a large quantity of high-value electronic equipment in boxes ready for sale.

Hill, 51, now of Swainsboro, Ga., was sentenced today by United States District Judge Richard W. Story to serve seven years, three months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $740,446.58.  In a parallel civil action, Judge Amy Totenberg also ordered the forfeiture of over $44,000 in cash, two bank accounts with over $47,000, a 1999 Lexus RS 300, and thousands of dollars’ worth of electronics equipment and jewelry.  Hill was convicted of these charges on December 19, 2012, after pleading guilty.

This case was investigated by Special Agents of the United States Secret Service and Investigators with the Cherokee County Sheriff’s Office.

Assistant United States Attorneys Stephen H. McClain and Jeffrey Viscomi 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.

GAINESVILLE, Ga. - Former bank vice president Adam Teague was sentenced today to serve over five years in federal prison for conspiring to defraud Appalachian Community 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.  “Our state has led the nation in bank failures since 2008, with 85 banks failing - including this one.  This bank was robbed from the inside, not by a bandit carrying a gun, but a bank officer carrying a pen.”

Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s sentencing of Mr. Teague should serve as a stark reminder to others that such greed based criminal behavior as seen in this case comes with a cost.  Understanding the potential impact on the banking institution itself, the FBI will continue to dedicate extensive investigative resources toward addressing bank fraud in its many and varied forms.”

Jon T. Rymer, Inspector General for the Federal Deposit Insurance Corporation (FDIC) said, “The Federal Deposit Insurance Corporation (FDIC) Office of Inspector General is pleased to join our law enforcement colleagues in announcing the sentence of this former bank official for his role in a complex bank fraud perpetrated through the failed Appalachian Community Bank.  It is especially important to investigate and prosecute cases where trusted insiders abuse their positions to cause harm to the institution and undermine the integrity of the financial services industry as a whole. We are committed to preventing and addressing such threats to the safety and soundness of FDIC-insured banks throughout the country.”

“Teague contributed to the failure of TARP-applicant Appalachian Community Bank by fraudulently masking the bank’s true financial condition while enriching himself,” said Christy Romero, Special Inspector General for TARP (SIGTARP).  “Driven by greed and risky behavior, Teague engaged in an ‘extend and pretend’ scheme using the proceeds of new bank loans to hide past-due loans.  He also hid the bank’s growing inventory of foreclosed property by directing the bank to finance sales of the properties to buyers including two Teague-controlled shell companies, GPH (“God Please Help”) Investments and PHL (“Please Help Lord”) Investments.  SIGTARP and our law enforcement partners will root-out fraud related to TARP, hold fraudsters accountable, and bring justice to American taxpayers.”   

Steve Linick, Inspector General Federal Housing Finance Agency said, “Protecting the integrity of the Federal Home Loan Bank system is critical to our nation’s economic recovery and we along with our law enforcement partners will aggressively pursue anyone seeking to take advantage of that system.”

According to United States Attorney Yates, the charges and other information presented in court, Teague was Senior Vice President of Appalachian Community Bank, which was headquartered in Ellijay, Ga.  Due to its poor financial condition, Appalachian was forced to close on March 19, 2010, and the FDIC was appointed as receiver.  The investigation of Appalachian’s loan transactions uncovered extensive fraudulent activity in which Teague was involved:

Concealment of Past-Due Loans

In an attempt to prevent the FDIC from discovering certain past-due loans on Appalachian’s books, between June 2008 and August 2009, Teague and unindicted coconspirator T.N, arranged a number of sham real estate transactions and caused the bank to make approximately $7 million in fraudulent loans to unindicted coconspirator M.L.  Teague and M.L. intended to make it appear as if M.L. had purchased certain properties from Appalachian’s foreclosure inventory and was making regular monthly payments on the new mortgages.

Panama City Beach Condominiums

In April 2009, Teague and unindicted coconspirator T.N., used shell corporations to purchase two condominiums in Panama City Beach, Fla. and caused Appalachian to finance them at a total cost of approximately $566,000.  Approximately two months later, the two refinanced their mortgages and pocketed more than $875,000 which they then used to pay other personal debts, make monthly loan payments on the refinanced mortgages, pay condominium fees, and purchase new furniture for their condominiums.

GPH Investments, LLC. and PHL Investments LLC

In August 2009, Teague and unindicted coconspirator T.N. created two shell companies: GPH Investments, LLC. and PHL Investments, LLC.  GPH is an acronym for “God Please Help,” and PHL is an acronym for “Please Help Lord.”  Teague and T.N. then engaged in a sham real estate transaction designed to make it appear as if GPH had purchased 11 residential properties from Appalachian’s foreclosure inventory for a total of approximately $3.7 million. 

Teague and T.N. then caused Appalachian to loan GPH 90 percent of the purchase price and caused GPH to represent at closing that it was paying the other 10 percent of the purchase price out of its own funds, even though the two of them knew that to be untrue.  The 10 percent down payment, closing costs, and monthly interest payments on this loan were all paid out of the proceeds from a $500,000 line of credit that Teague and unindicted coconspirator T.N. fraudulently caused Appalachian to extend to PHL.

Soak Creek Preserve Partners Land Flips

Teague and three other individuals owned Soak Creek Preserve Partners, LLC (Soak Creek), a Georgia limited liability company formed for the sole purpose of engaging land flips, that is, buying real estate and immediately reselling it at a higher price.  Specifically, Soak Creek was formed to purchase and resell two adjoining tracts of land in Tennessee.  One tract consisted of approximately 5,043 acres and the other tract consisted of approximately 2,160 acres.  Before Soak Creek purchased either tract, Teague and his partners made arrangements to resell both tracts to an investment group from Texas.

Teague then caused Appalachian to make three separate $100,000 loans to unindicted coconspirator B.H. under false pretenses between March 7, and September 4, 2007.  Teague knew that B.H. was a silent partner in Soak Creek.  He also knew that in obtaining these loans from the bank, B.H. was acting as a straw borrower for Soak Creek.  And Teague also knew that Soak Creek intended to use the proceeds of these loans as down payments on the 5,043 acres and the 2,160 acres. But Teague did not disclose any of these facts to Appalachian Community Bank.  In fact, he actively hid his involvement in at least one of these loan transactions by altering the bank’s records to make it appear that someone else had acted as the loan officer.  By not disclosing to Appalachian’s loan committee that he had a personal financial interest in these transactions, Teague violated the bank’s conflict-of-interest policy.

To finance Soak Creek’s purchase of the 5,043 acres, on April 20, 2007, Teague caused Appalachian to wire transfer approximately $7.2 million of the bank’s money to the escrow account of the Tennessee law firm that handled the loan closing.  He did not record this wire transfer in the bank’s books and records.  At the time of this transfer, Soak Creek’s account at Appalachian had a zero balance.  Therefore, this wire transfer caused Soak Creek’s account to be overdrawn by approximately $7.2 million.  The amount of this overdraft exceeded Teague’s lending authority at the bank.

On April 24, 2007, Soak Creek flipped the 5,043 acres to the Texas investment group for approximately $9.3 million, thereby realizing a same-day profit of approximately $2 million.

To finance Soak Creek’s purchase of the 2,160 acres, on September 28, 2007, Teague caused Appalachian to wire transfer approximately $3 million of the bank’s money to the escrow account of the Tennessee law firm that handled the loan closing.  He also did not record this wire transfer in Appalachian’s books and records.  At the time of this wire transfer, there was only four dollars in Soak Creek’s account at the bank.  The wire transfer caused Soak Creek’s account to be overdrawn by approximately $3 million.  The amount of this overdraft exceeded Teague’s lending authority at the bank.

On September 28, 2007, Soak Creek flipped the 2,160 acres to the Texas investment group for approximately $3.7 million, thereby realizing a same-day profit of approximately $500,000.

Teague, 39, of Ellijay, was convicted on these charges on August 22, 2012, after he pleaded guilty.  United States District Judge Richard W. Story sentenced him to five years, ten months in prison to be followed by five years of supervised release.  Teague was also ordered to forfeit $5,840,517.98, which is equal to the amount of the illegal proceeds he obtained as a result of the conspiracy, as well as all of the real property that he purchased with the proceeds of the conspiracy.

This case was investigated by Special Agents of the Federal Bureau of Investigation, the Federal Deposit Insurance Corporation, Office of Inspector General, the Department of Treasury, Special Inspector General - Troubled Asset Relief Program, and the Federal Housing Finance Agency, Office of Inspector General.

Assistant United States Attorneys Russell Phillips and Mike 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.

TSA Caught Defendant with Nearly 100 Fraudulent Credit Cards

ATLANTA - Elton Lee Flenaugh has been indicted on charges of conspiracy, possession of counterfeit access devices, and aggravated identity theft after TSA discovered fraudulent credit cards in his carry-on bag during pre-flight security screening.   

“Identity theft and credit card fraud is a pervasive problem that comes to light in many different ways, usually after the damage is already done,” said United States Attorney Sally Quillian Yates.  “Alert TSA agents should be commended for catching this thief red-handed and referring him to law enforcement.”

According to United States Attorney Yates, the charges, and other information presented in court, on February 9, 2013, Flenaugh and a female companion, who reside in the San Francisco Bay Area, were scheduled to fly from Atlanta to Phoenix, Az. on United Airways Flight 88 at 7:40 a.m.  As they approached TSA’s main pre-flight security screening checkpoint, Flenaugh handed his backpack to his companion.  He then left her and presented himself for screening without any carry-on items.  He used TSA’s identity verification process because he claimed to be flying without any photo identification.  Flenaugh provided TSA with an alias during this process, using the name “Joshua Ford.”

Flenaugh’s companion presented carry-on bags to TSA for screening, including Flenaugh’s backpack.  While the backpack was being x-rayed, an alert TSA employee noticed a suspicious package.  Upon further inspection a stash of nearly 100 fraudulent credit cards was discovered hidden inside an empty Lay’s potato chip bag.  The credit cards were in various male and female names -- including 33 in the name of Flenaugh’s female companion.  Additionally, 21 of the credit cards had not yet been embossed with names or account numbers. 

A subsequent search of the backpack by the Atlanta Police Department (APD) revealed multiple fraudulent drivers licenses secreted in various places in the backpack.  Licenses from various states including Arizona, New Jersey, and Ohio were found under the insole of a pair of men’s tennis shoes.  Three had different names bearing Flenaugh’s photograph.

Flenaugh tried to flee but was arrested by APD, and charged with state credit card fraud offenses.  On March 4, 2013, the U.S. Secret Service arrested him and charged him by complaint with one count of possession of 15 or more counterfeit or unauthorized access devices. 

On March 7, 2013, U.S. Magistrate Judge Linda T. Walker ordered Flenaugh, 33, a/k/a Joshua Ford a/k/a Ali Emir Waheed, of Richmond, Calif., to remain in federal custody pending trial both as a flight risk and as a danger to the community.  Walker based her ruling on his ready access to false identity documents and credit cards, his use of aliases, and his extensive criminal history. 

“The Secret Service will continue to collaborate with our law enforcement partners to aggressively target and arrest individuals who commit financial crimes,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.

Flenaugh’s companion was arrested by APD at the airport and charged with state credit card fraud crimes.  She remains in state custody.

The indictment charges Flenaugh with one count of conspiracy to possess 15 or more counterfeit or unauthorized access devices, one count of possession of 15 or more counterfeit or unauthorized access devices, and nine counts of aggravated identity theft.  The conspiracy charge carries of maximum sentence of 5 years in federal prison, the possession charge carries a maximum sentence of 10 years in federal prison, and each of the aggravated identity theft charges carries a mandatory minimum sentence of two years in federal prison, at least one count of which is required to be imposed consecutive to any sentence imposed on the underlying charges.  Each of the charges also authorizes a fine of up to $250,000 per count.  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 United States Secret Service.

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

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

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

Used His Home Computer to Receive and Store Images

ATLANTA – David Rice was arraigned Thursday, March 28, 2013, for possession and receipt of child pornography, and has been released on bond with conditions including electronic monitoring, and a requirement that he not have unsupervised contact with children.

“The possession and receipt of child pornography attempts to normalize the exploitation of children,” said United States Attorney Sally Quillian Yates. “It not only harms the minor victims portrayed in those images, it fuels a heinous market.  We will protect children, so individuals in our District interested in acquiring and using these images need to understand that we will prosecute them.”

“The child pornography cases we investigate reveal the disturbing and sobering truth that some adults will go to great lengths to sexually exploit children,” said Brock D. Nicholson, Special Agent in Charge of Homeland Security Investigations, Atlanta. “While we cannot give back the innocence that's been stolen from these children, we can make sure that those who commit these horrible crimes are brought to justice.”

According to United States Attorney Yates and the information presented in court:  In April and May 2012, a federal agent with Homeland Security Investigations determined that Rice possessed approximately 950 files containing known or suspected child pornography at his home.  Those files included images of minor girls being molested by adult males.  In June 2012, law enforcement officers executed a search warrant at Rice’s home.  Agents seized his home computer during that search, which contained numerous images of child pornography.

The indictment charges Rice, 51, of Ellenwood, Ga., with receipt of child pornography, which carries a maximum term of imprisonment of 20 years and a fine of $250,000.  He is also charged with possession of child pornography, which carries a maximum term of imprisonment of ten years and a fine of $250,000.  Both charges carry no less than five years to a lifetime of supervised release.  His arraignment was held before United States Magistrate Judge Gerrilyn G. Brill.

If convicted, Rice will be required to 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.

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.

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

This case is being investigated by 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. - Michael Henderson pleaded guilty today to obstructing a pending civil rights investigation by tampering with a witness while employed as a Murray County Sheriff’s Captain.
           
“Mr. Henderson violated both the law and the public’s trust when he lied to his fellow law enforcement officers and obstructed a civil rights investigation,” said United States Attorney Sally Quillian Yates.  “Bottom line, the citizens of Murray County at minimum deserve police officers who obey the laws that they have sworn to enforce.” 

“The citizens of this State should have every expectation that those who serve do so with integrity and within the bounds of the law,” said Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office.  “The conduct of this now former law enforcement officer, as presented in this case, was clearly not within those standards and the FBI will continue to work with its law enforcement partners in ensuring that the public’s trust is well deserved.”                                 

“The State of Georgia will not tolerate criminal activity by those officials with the duty to enforce its laws,” said Vernon Keenan, GBI Director.

According to United States Attorney Yates, the charges and other information presented in court, sometime in July 2012, then-Captain Henderson received information that a white Dodge vehicle was being used to carry drugs. He passed this information along to other deputies with the Murray County Sheriff’s Office.

Henderson and separately charged former Deputy Sheriff Joshua L. Greeson participated in a traffic stop of the white Dodge car on August 14, 2012.  During the stop, Greeson found methamphetamine in a metal can hidden under the wheel well of the car.  After finding the drugs, they arrested the driver and owner/ passenger of the vehicle.  Shortly thereafter, the Georgia Bureau of Investigation (GBI) received information that the drugs had been planted on the vehicle by another individual, in an attempt to falsely implicate the car’s owner. As a result, the state drug charges against the owner of the white Dodge were dismissed.

On August 22, 2012, agents from the GBI interviewed Henderson in connection with a civil rights investigation. During the interview, Henderson falsely stated to the GBI agents that he had never told any other members of the Murray County Sheriff’s Office that he had received information that the white Dodge was allegedly carrying drugs. As stated above, Henderson had in fact received information that the white Dodge vehicle carried controlled substances.

On August 31, 2012, Henderson was fired from the Sheriff’s Office.

Henderson, 41, of Murray County, Ga. could receive a maximum sentence of 20 years in prison and 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. 

Sentencing is scheduled for May 31, 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.

ATLANTA - Kenneth Lewis Martin, 25, of Guatemala, was sentenced today to serve over four years in federal prison for importing and possession with intent to distribute heroin.

“Our commitment to the safety of our citizens includes safeguarding our airports and holding accountable those who attempt to breach that security,” said United States Attorney Sally Quillian Yates.  “Thanks to vigilant Customs and Border Protection agents, this defendant was unable to slip through security with the drugs he concealed in his suitcase.”

According to United States Attorney Yates, the charges and other information presented in court:  On May 28, 2012, Martin arrived in Atlanta on Delta Air Lines flight 456, which originated in Guatemala City, Guatemala.  Martin then claimed one piece of checked luggage from the baggage carousel.  When Customs and Border Protection agents inspected Martin’s luggage, they found 2.5 kilograms of heroin hidden within artwork.  Martin’s ultimate destination was Providence, Rhode Island. 

“With today’s sentencing, Homeland Security Investigations (HIS) sends the clear message that no matter the level of sophistication, HSI will vigilantly investigate drug smuggling activities and bring all those involved to justice.” said Brock D. Nicholson, Special Agent in Charge of HSI Atlanta. “HSI will continue working with our Department of Homeland Security, federal, and local partners to identify, arrest, and prosecute those involved in the illegal trafficking of narcotics.”

United States District Judge Willis B. Hunt, Jr. sentenced Martin to four years, two months in prison followed by three years of supervised release.  Martin was convicted of these charges on November 28, 2012 after he pleaded guilty.

 This case was investigated by Special Agents with the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, National Security Investigations Division.

Assistant United States Attorneys C. Brock Brockington and Tasheika Hinson 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.

Defendant Stole Money From Escrow Account

ATLANTA – Neal Landers, 46, of Duluth, Georgia, was sentenced today to two years, three months in prison, for using funds taken from real estate transactions he oversaw for his personal use.

“Landers violated the law and the trust of his clients when he used his firm’s escrow account as his own personal piggy bank,” said United States Attorney Sally Quillian Yates.

“The FBI worked diligently in building a solid criminal investigation in this matter and hopes that those victimized by Mr. Landers’ egregious breach of trust can take some solace in today’s sentencing,” said Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office.

According to United States Attorney Yates, the charges, and other information presented in court, beginning in 2007, Landers exploited his position as a real estate closing attorney by misappropriating the funds from real estate closings. Specifically, Landers received money transfers into his escrow account from several real estate closings but did not distribute them as required.  He deliberately delayed paying out the funds for weeks and sometimes months rather than promptly disbursing the funds for the recently closed properties.  Instead, Landers would use those funds to pay out the parties from previously completed transactions. He also transferred funds, in amounts that far exceeded any closing fees and/or costs, from his escrow account to his business checking account.  He then used that money to pay various personal expenses.

United States District Judge Thomas W. Thrash, Jr. sentenced Landers to two years, three months in prison, to be followed by three years of supervised release.  He was also ordered to pay more than $850,000 in restitution.

The Georgia Bar disbarred Landers in 2008.

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

Assistant United States Attorney Jeffrey W. Davis 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.

Programs Allegedly Violated Inventory Provisions of the Controlled Substances Act

ATLANTA – New Horizons Treatment Center and Epiphany Center, Rome Inc. located in Rome, Ga., have agreed to civil settlements and will pay penalties to resolve allegations they violated inventory requirements of the Controlled Substances Act. Epiphany Center, Rome Inc. has also agreed to voluntarily surrender its DEA license.

 “Narcotic treatment programs that distribute prescription drugs must maintain proper records of the drugs they distribute. By failing to keep an accurate count of their controlled substances inventories, these narcotic treatment programs created the potential that prescription drugs would be diverted to illegitimate uses,” said United States Attorney Sally Quillian Yates.  “We are committed to detecting and stopping the diversion of controlled substances by enforcing the recordkeeping requirements of the Controlled Substances Act,” she said.

The government alleges that Epiphany Center, Rome Inc. failed to maintain a current, complete and accurate record of all controlled substances received, sold, delivered, or otherwise disposed of.  Accountability audits conducted by the DEA revealed overages of methadone in 2011 and shortages of methadone in 2012.  Significantly, the 2012 audit found a shortage of approximately 460,000 milligrams of methadone.  The government also alleges that Epiphany Center failed to conduct its first biennial inventory of methadone, failed to conduct a biennial inventory in compliance with all applicable laws and regulations, failed to maintain a dispensing log, and failed to comply with all applicable laws and regulations regarding written orders for methadone.

The government alleges that New Horizons Treatment Center failed to maintain a current, complete and accurate record of all controlled substances received, sold, delivered, or otherwise disposed of.  A 2011 accountability audit of New Horizons conducted by the DEA revealed overages of methadone liquid and buprenorphine and a shortage of methadone diskettes.

“The civil penalties set forth in this case are appropriate for the civil violations that these businesses engaged in,” said Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division.  “DEA is in the business of keeping the public safe by making sure that such establishments are playing by the rules which will make the diversion of controlled analgesics less likely.”

Both claims settled in these civil settlements are allegations only, and there has been no determination of liability. Epiphany Center has agreed to voluntarily surrender its DEA license and to pay $12,500 to resolve these allegations. New Horizons has agreed to pay $5,000 and to additional oversight from the DEA.

The Controlled Substances Act was enacted to ensure that controlled substances are properly regulated and to help prevent drug diversion.  Thus, narcotic treatment programs that receive and dispense controlled substances are required to maintain complete and accurate inventories and records of all controlled substances that they purchase, receive, dispense, or destroy.  In order to enforce the recordkeeping requirements of the Controlled Substances Act, the Act imposes civil penalties for refusing or negligently failing to maintain the records required by the Act.

These cases, which are unrelated, were investigated by Diversion Investigators from the Drug Enforcement Agency.

The civil settlements were reached by Assistant United States Attorneys Lena Amanti and Darcy 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.

Sroufe Presented a Tax Return to the IRS Falsely Claiming a $1.7 Million Refund

ATLANTA - A federal jury in Atlanta convicted Donus R. Sroufe, 55, of Suwanee, Ga. of interfering with the administration of revenue laws and making a false claim for a $1.7 million tax refund. 

“Millions of Americans file their tax returns honestly every year, while Mr. Sroufe tried to defraud the Government out of $1.7 million dollars,” said United States Attorney Sally Quillian Yates.  “Fortunately, the IRS intercepted the return and, as a result, no taxpayer funds were paid out.  Given the present climate with the federal budget, it is critically important to prevent fraudsters from stealing tax funds instead of paying them.”

“The prosecution of individuals who intentionally try to impede the IRS by submitting frivolous and fraudulent documents is a vital element in maintaining public confidence in our tax system,” stated Veronica Hyman-Pillot, Special Agent in Charge of IRS Criminal Investigation. “Hopefully the verdict today will send a message to other individuals like Sroufe, that this conduct will not be tolerated.”

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.  He claimed a tax refund of $1.7 million.  On that tax return, Sroufe falsely claimed that he received $2.5 million from a United States Treasury bond, and that he had paid over $2.6 million in federal taxes.  In fact, the $2.5 million bond was a fake and he had not paid any income taxes for 2008.

In April 2009, the IRS notified Sroufe that his 2008 tax return was “frivolous” and warned him that he could face a penalty for filing a false return.  Also, 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. 

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

Today, the jury found Sroufe guilty of interfering with the administration of the revenue laws and for making a false claim for a tax refund.   The most serious of the charges (filing a false claim) carries 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 May 30, 2013, at 10:00 a.m. before United States District Judge Charles A. Pannell, Jr.

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

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

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

ROBBERY CREW MEMBER WHO IMPERSONATED LAW ENFORCEMENT SENTENCED

Defendant Dressed as Police Officer to Commit Home Invasion

ATLANTA - Torrez Seymore, 25, of Baltimore, Md., was sentenced today by United States District Judge Timothy C. Batten, Sr., for possessing with the intent to distribute marijuana obtained by robbery and discharging a firearm in connection with that robbery.

“The violence associated with drug crimes is especially disturbing to our community,” said United States Attorney Sally Quillian Yates. “We work hard to maintain public confidence that people are safe.  Homes being raided by criminals dressed in law enforcement gear, carrying guns and yelling police is extremely unsettling. This case effectively dismantled this robbery crew,” she said.       

According to United States Attorney Yates, the charges and other information presented in court:  On January 14, 2010, Seymore and four others dressed as police officers and carrying guns assaulted a suburban house on Hyland Drive in DeKalb County, Ga.  He and his fellow robbers used a vehicle tracking device on the victim’s cars to find the location of the house.  The crew thought that the residents were marijuana suppliers. 

The robbers wore fake police badges and vests with the word “Police” printed on them. They also carried handcuffs and firearms.  As they pulled into the victim’s driveway, he came out of the house.  The robbers yelled, “DeKalb County Police get down, cuff him!”  Their goal was to force the victim take them to a “stash” house where they believed additional drugs were stored.  While the robbers were in the middle of trying to kidnap the victim, a friend of the victim arrived and the robbers traded gunfire with him on the lawn. The robbers then beat and kidnaped the victim. The victim took the crew to his girlfriend’s home, under the pretense that it was the “stash” house that the robbers sought to find.  The victim’s girlfriend fled the home through the back door and called police, who came and rescued the victim.

“Gun violence perpetrated by anyone tears at the very fabric of our communities; but when this violence is committed by impersonating law enforcement; an alarming message of intolerance needs to be sent to those who dare to engage in such offenses,” said Bureau of Alcohol, Tobacco, and Firearms (ATF) Assistant Special Agent in Charge Aladino Ortiz. “As the violent crime bureau, ATF will see to it that individuals who illegally arm themselves are removed from our streets so that our communities can remain a safe place to live and prosper.”

Seymore was sentenced to 13 years, 10 months in prison to be followed by 5 years of supervised release.  Seymore was convicted of these charges on March 7, 2013, upon his plea of guilty.

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

Assistant United States Attorneys Kim Dammers and Timothy Storino 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 – Brandon Lamar Young, 25, of Lawrenceville, Ga. was sentenced today by United States District Judge Thomas W. Thrash, Jr. for conspiracy to defraud Bank of America as part of a plot to take over a Georgia resident’s bank account.

“Prosecuting bank fraud and identity theft continues to be one of the major priorities of the Department of Justice,” said United States Attorney Sally Quillian Yates.  “These defendants are being held accountable for their fraudulent conduct because of an honest citizen who refused to go along with the fraud scheme and the hard work of law enforcement agents who moved quickly and successfully stopped the crime before a Georgia resident was further victimized.”

“Identity theft is a serious issue and can, as in this case, involve stealing and misusing confidential personal information,” said Steve Linick, Inspector General, Federal Housing Finance Agency.  “My office is committed to investigating and prosecuting such cases and we are proud to have worked with our law enforcement partners on this case.”

According to United States Attorney Yates and the information presented in court:  On several occasions between June 2011 and May 2012, Brandon Young bought confidential financial information relating to 12 financial accounts from Alex Dantzler for a total of $1,800.  Dantzler worked for the Federal National Mortgage Association, commonly known as “Fannie Mae,” in Dallas, TX, and had access to electronic loan files and other confidential financial information pertaining to Fannie Mae’s customers. One of the account profiles Dantzler sold to Young was of a Georgia resident, and included the Georgia resident’s Social Security number, date of birth, Georgia driver’s license number, and Bank of America account number. 

Young took the Georgia resident’s financial information and asked an acquaintance, Oluwashina Daniel Akinfenwa, of Marietta, Ga., to help him find a Bank of America employee who would be willing to help him take over the individual’s account.  Akinfenwa recruited Bank of America employee Letitia Perry, of Atlanta, Ga., who had access to the bank’s computer system.  Akinfenwa asked Perry to help take over the individual’s account.  Young and Akinfenwa agreed to give Perry one-third of whatever money they could get out of the individual’s account.

Perry then used Bank of America’s computer system to access confidential information pertaining to the Georgia resident’s account on at least three separate occasions.  On August 10, 2012, she deliberately deleted the account holder’s true telephone number from the computer system and replaced it with Young’s telephone number.  Perry then gave the telephone password and other confidential information pertaining to the individual’s account to Young and Akinfenwa.

Young contacted another friend on August 14, 2012, and asked him if he knew a white male who might be willing to impersonate the individual so they could illegally withdraw funds from the account.  Young’s friend said that he would find someone who would do it.  Instead, Young’s friend contacted the FBI.  The FBI quickly arranged for one of its white male undercover employees to pose as a person who would be willing to impersonate the individual.

On August 14, 2012, the FBI undercover employee telephoned Young and introduced himself.  Young told the FBI undercover employee that he had identified an account that he wanted to take over.  He also stated that a female bank employee had deleted the real account holder’s telephone number from official bank records and had replaced it with his telephone number.  Young further stated that he was in possession of the real account holder's account profile.

Young instructed the FBI undercover employee to have his photograph taken and to send it to him as soon as possible.  He wanted the photo so he could obtain a fake driver’s license in the real account holder’s name.  Young gave the FBI undercover employee specific instructions on what the photograph should look like.  The FBI undercover employee had his photograph taken according to Young’s directions and sent it to him.

One week later, on August 21, 2012, Young sent the FBI undercover employee a text message containing the individual’s account profile.  He also sent the FBI undercover employee a text message containing a photograph of a fake Georgia driver's license bearing the individual’s name, address, and the picture.

Young, Akinfenwa, and Perry were arrested before they could remove any money from the Georgia resident’s account.  Young’s arrest also prevented him from victimizing the persons associated with the other 11 stolen accounts.

Akinefenwa, Perry, and Dantzler pleaded guilty to this offense.  On February 5, 2013, Perry was sentenced to five months in federal prison, to be followed by five months of home confinement, and one year of supervised release.  On February 5, 2013, Akinfenwa was sentenced to 15 months in federal prison to be followed by one year of supervised release.

Young was sentenced to serve 2 years, 9 months in federal prison to be followed by 3 years of supervised release.  Young was convicted on December 13, 2012, upon his plea of guilty.

Dantzler is scheduled to be sentenced on May 8, 2013, at 10:00 a.m. before United States District Judge Thomas W. Thrash, Jr.  He 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.

The Young, Akinfenwa, and Perry cases were investigated by special agents of the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Russell Phillips. 

The Dantzler case is being investigated by special agents of the Federal Bureau of Investigation and the Federal Housing Finance Agency, Office of Inspector General, and is also being prosecuted by Assistant United States Attorney Russell Phillips.

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.

Over $614,000 Worth of Methamphetamine and Heroin Seized From
Delta Air Lines Flight from Mexico City

ATLANTA - Luis Marroquin, 36, of Atlanta, Ga., Carlos R. Springer, 42, of Hampton, Ga., and Kelvin Rondon, 28, of Miami, Fla., were sentenced today by United States District Judge Orinda Evans for conspiracy to possess with the intent to distribute methamphetamine and heroin. 

“We serve the citizens of our district by promoting healthy and safe communities and we will prosecute anyone who uses our airports to import deadly drugs,” said United States Attorney Sally Quillian Yates.  “People have a reasonable expectation when boarding an airplane that airline personnel will be professionals who value their safety,” she said, “and will not expose them to illegal activity.”

According to United States Attorney Yates, the charges and other information presented in court:  On January 13, 2012, Delta Air Lines flight 364 arrived at the Atlanta Hartsfield-Jackson International Airport from Mexico City.  A Delta agent discovered an unclaimed piece of luggage at a baggage carousel with a tag for flight 364.  Customs and Border Protection agents inspected the luggage, and determined that it contained multiple packages of suspected illegal narcotics.  Later that same day, Springer was interviewed by Homeland Security Investigations agents.  Springer was the performance leader for the shift of ramp employees who off-loaded the baggage on flight 364. 

During a search of Springer’s cellular telephone, agents found coded, incriminating text messages between Springer and Marroquin around the time of the arrival of the flight.  Rondon was observed on the video of the arrival and unloading of flight 364, although he was off-duty and had no authorization to work the flight.

Agents also learned that Marroquin recruited Rondon.   Rondon was to make sure that the bag was on the flight, and was to be paid $500 per package.  The day before flight 364 arrived Rondon was shown a photo of the drug-laden bag on Marroquin’s telephone.  Rondon stated when he arrived on the tarmac he helped unload the cargo and attempted to find the bag but was unsuccessful.

“The security of critical infrastructure like Hartsfield-Jackson Airport is a key national security concern,” said Brock D. Nicholson, Special Agent in Charge of ICE Homeland Security Investigations in Atlanta. “HSI special agents and our partners like U.S. Customs and Border Protection and the Delta security team are committed to identifying those who seek to exploit the system and ensuring they are held accountable for their actions.”

Following the return of the indictment on May 1, 2012, Marroquin fled the Atlanta area but was apprehended several days later in a residence in Coral Springs, Fla.

Marroquin was sentenced to 15 years, 8 months in prison to be followed by 5 years of supervised release. 

Springer was sentenced to 11 years, 3 months in prison to be followed by 5 years of supervised release.  

Rondon was sentenced to 5 years, 3 months in prison to be followed by 5 years of supervised release.  

Marroquin, Springer, and Rondon were convicted of the above charges upon their pleas of guilty last year.

This case was investigated by Special Agents with the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and Task Force Officers, with assistance from Delta Air Lines Corporate Security,

Assistant United States Attorney Michael Herskowitz prosecuted the case.

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

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

ATLANTA - A New York broker has been indicted for conspiring to defraud 350 financially strapped customers of more than $1.2 million.  Kenneth J. Enrico, 46, of Bohemia, New York, was arraigned today on a federal indictment before United States Magistrate Janet F. King on one count of conspiracy, three counts of mail fraud, and thirteen counts of wire fraud. The federal grand jury indicted Enrico on February 19, 2013.

“The public is once again reminded that if a deal sounds too good to be true, it usually is,” said United States Attorney Sally Quillian Yates.  “The charges against Enrico reflect our continuing commitment to protect our more financially vulnerable victims from the fraudsters who prey upon them.”

According to United States Attorney Yates, the charges and other information presented in court, between June 2011 and August 2012, Enrico offered property buyers private lender loans of 105% of the property’s selling price at a 4.99% interest rate, regardless of the buyer’s credit score, as long as the buyers had jobs that generated enough income to qualify for the loan amount and monthly payments.  Enrico required the buyers to pay him an up-front fee of $2,500 per loan, which he claimed covered loan processing fees and the appraisal.  Enrico publicized his offer through several brokers, two of whom were located in the metropolitan Atlanta area.  The broker tacked on additional fees.    

More than 350 individuals responded to Enrico’s pitch and sent in more than $1.2 million in up-front fees either to Enrico directly or through the brokers.  Enrico approved all of the buyers for loans.  However, none of the buyers ever received a loan from Enrico.  He gave the buyers numerous excuses as to why their loans never closed.  Not only did the buyers lose the fees paid to Enrico, they lost the earnest money they paid to the sellers of the properties they were trying to buy when their sales contracts expired.  The buyers often relied on Enrico’s excuses and entered into sales contracts on second properties with additional earnest money payments, which they later lost when Enrico never funded their loans.

The charges each carry a maximum statutory penalty of 20 years in prison and a fine of up to $250,000.  In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.

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

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

Assistant United States Attorney David Leta is 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.

Second Bank Officer Charged With Fraud

GAINESVILLE, Ga. – A former bank employee was indicted by a federal grand jury on February 26, 2013, on charges arising out of a scheme to defraud his former employer Appalachian Community Bank (also known as Gilmer County Bank).  William R. “Rusty” Beamon, Jr., 52, of DeKalb County, Ga. will be arraigned today at 2:15 p.m., before United States Magistrate Judge J. Clay Fuller in Gainesville, Ga.

“Bank fraud is a critical problem throughout the United States, but it has hit Georgia especially hard,” said United States Attorney Sally Quillian Yates.  “Georgia leads the nation in bank failures since 2008, with 78 banks failing – including Appalachian Community Bank, the bank this defendant is accused of defrauding.  Prosecuting bank fraud continues to be one of the major priorities of our office and the United States Department of Justice,” she said.

According to United States Attorney Yates, the indictment, and other information presented in court, Beamon was Vice President of Appalachian Community Bank, which had its headquarters in Ellijay, Ga.  He was responsible for Appalachian’s foreclosure liquidation department. 

In 2009, Beamon told a real estate agent that he personally owned a house in Cumming, Ga. and then hired that agent to market and lease the property on his behalf.  The property, however, was owned by Appalachian Community Bank and was part of the bank’s foreclosure inventory.  The real estate agent found someone to lease the property and negotiated a lease on Beamon’s behalf.  Beamon then deposited into his personal bank account more than $20,000 in rent payments and security deposits from the illegal lease. 

Beamon also allowed Appalachian Community Bank to make loans to his wife, and to a shell company that he owned, to finance fraudulent real estate purchases of properties in the bank’s foreclosure inventory.  Each property was sold at a price substantially below fair market value. 

Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “The lack of responsible, ethical leadership at Appalachian Community Bank eventually led to that bank’s failure.  The FBI understands the harm caused by such criminal behavior of bank employees or their executives and asks that anyone with information on such activity to contact their nearest FBI field office.”

Due to its poor financial condition, Appalachian Community Bank was forced to close on March 19, 2010, and the FDIC was appointed as receiver.

“The Federal Deposit Insurance Corporation Office of Inspector General is pleased to join our law enforcement colleagues in announcing this indictment,” said Jon T. Rymer, Inspector General, FDIC.  “We are particularly concerned when officers of a bank abuse their positions of trust and jeopardize the viability of their banks.   We will continue to pursue such offenders in the interest of maintaining the safety and soundness of our nation’s banks and protecting the Deposit Insurance Fund.”

 Beamon is not the first insider at Appalachian Community Bank to face federal criminal charges arising out of his employment at the bank.  Adam Teague, 38, of Ellijay, Ga. was charged with conspiracy to commit bank fraud and pleaded guilty to that offense on August 23, 2012.  Teague, who was Senior Vice President of Appalachian, is scheduled to be sentenced by United States District Judge Richard W. Story on April 5, 2013.  Teague faces a maximum sentence of 30 years in prison and a fine of up to $1,000,000.

Both cases are being investigated by Special Agents of the FBI and the FDIC Office of Inspector General.  The Teague case is also being investigated by Special Agents of the Department of Treasury, Special Inspector General Troubled Asset Relief Program, and the Federal Housing Finance Agency, Office of Inspector General.

The indictment charges 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.

Assistant United States Attorney Russell Phillips is prosecuting both 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.  

Defendant Also Traveled to Georgia to Buy Firearms
While Under Indictment in South Carolina

ATLANTA - Patrick Randell McIntosh, 28, of Charleston, South Carolina, was arraigned today before United States Judge Linda T. Walker, on charges of possessing three firearms and ammunition while under indictment for a felony, and for threatening the life of the President of the United States on Facebook. 

“McIntosh is charged with making violent and disturbing threats online and via email to several people, including a threat to the life of the President of the United States,” said United States Attorney Sally Quillian Yates.   “Many state, local and federal law enforcement agencies have worked together to bring this potentially dangerous man into custody to protect the citizens of the United States.”

According to United States Attorney Yates, the charges and other information presented in court, McIntosh posted on his Facebook page his intention to shoot patrons at a local Atlanta lounge and to kill the President of the United States. After posting the various threats, the defendant purchased three firearms from individuals who advertised weapons for sale.   

McIntosh also threatened a woman in the Atlanta area.  The woman reported to Gwinnett County authorities that McIntosh was stalking her.  She gave police the location of a hotel where McIntosh was staying.  Law enforcement officers subsequently arrested McIntosh at the location and recovered guns and ammunition in his possession. 

“With the increased use of the various forms of social media comes increased online threats that vary in nature,” said Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office.  “The FBI, as well as law enforcement as a whole, takes such online based threats seriously and they can easily evolve into federal criminal charges for those individuals making them.”

“Threats against the President of the United States and others we are statutorily authorized to protect are the Secret Service’s number one investigative priority.  Every threat, no matter if made by telephone, in person, in writing, or on social media is examined to the fullest extent possible.  Working with our partners in law enforcement and the U.S. Attorney’s Office we will continually seek to bring those who make threats to justice,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office. 

“I’m proud of the Atlanta Police Department’s active participation in the investigation that led to the removal of this dangerous individual off of the streets,” said Atlanta Police Chief George N. Turner. “This arrest and indictment underscores the importance of solid relationships with our local, state and federal law enforcement partners. We’re all safer today as a result of this cooperation.”

McIntosh was indicted by a federal grand jury in Atlanta on January 15, 2013, and charged with illegally possessing three firearms and a large amount of ammunition while under indictment for a felony offense, and for threatening the President.   He had been released on state bond after being indicted in the state of South Carolina for felony stalking.

McIntosh faces a maximum possible sentence of five years in prison on the firearms charge, and ten years in prison on the threat charge.  McIntosh could be also be fined up to $250,000.00 on each charge.  In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding on the Court but provide appropriate sentencing ranges for most offenders.

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

This case is being investigated by the Joint Terrorism Task Force (“JTTF”), which includes agents with the Federal Bureau of Investigation, the United States Secret Service, and the Federal Air Marshal Service.  The threat was initially investigated by detectives of the Atlanta Police Department and subsequently referred to the JTTF.

Assistant United States Attorney Katherine M. Hoffer 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 Stole Millions in U.S. Treasury Checks from Postal Facility

ATLANTA – Three defendants, including two former postal workers, were sentenced today in federal court for stealing more than $3.5 million in U.S. Treasury checks from an Atlanta mail distribution facility.  Over 1,800 victims had their tax refund, Social Security, and Veterans checks stolen during the scheme.  The defendants were convicted of conspiracy, theft of government money, and possession of stolen Treasury checks.

United States Attorney Sally Quillian Yates said, “With today’s sentencings, a major U.S. Treasury check theft ring that plagued this State for many years has been successfully dismantled.  The defendants stole millions in tax refund, Social Security, and Veterans checks from good people who had expected to receive their checks in the mail only to discover they had been diverted to criminals and identity thieves.  The task force will continue to target those who are responsible for making Georgia a hotbed for this kind of criminal activity.”

Special Agent in Charge Guy P. Fallen, Office of the Inspector General, Social Security Administration stated, “Social Security payments are a lifeline for many Americans who are unable to work due to a temporary or permanent disability.  Our office is gratified by the U.S. Attorney’s shared commitment to investigate and prosecute those who defraud Social Security trust funds.  One of our highest priorities is ensuring that those who steal SSA payments are swiftly detected and prosecuted.  Social Security fraud affects all Americans.  The individuals sentenced today are a testament to our serious commitment to pursuing those who would victimize Social Security beneficiaries.” 

“Check fraud is one of the largest challenges facing financial institutions today.  This case illustrates the importance of task force partnerships with state, local and federal law enforcement agencies.  The Secret Service will continue to work with our law enforcement partners in combating threats to our nation’s financial payment systems and to protect innocent victims,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.

Special Agent in Charge Quentin G. Aucoin, Department of Veterans Affairs, Office of Inspector General stated, “Thefts of VA benefits checks intended for veterans who honorably served this country will not be tolerated.  VA OIG vigorously investigates allegations of criminal activities impacting VA programs.”

According to United States Attorney Yates, the charges and other information presented in court:  Gerald Eason worked as a supervisor at the Atlanta Processing and Distribution Center, a centralized mail distribution center, on Crown Road in Atlanta, Georgia.  That facility processes mail for delivery to dozens of zip codes in Georgia.  Deborah Fambro-Echols worked as a mail handler at the facility.  While on the job, Eason and Fambro-Echols stole thousands of U.S. Treasury checks and provided them to a network of brokers and check cashers who would then negotiate the checks and split the criminal proceeds with them.  These individuals forged endorsements and used fake identification to pose as the intended recipients of the checks when cashing them.  Federal authorities believe that Eason and Fambro-Echols are responsible for a significant portion of the U.S. Treasury checks reported stolen in Georgia over the last four years.

In April 2011, law enforcement authorities searched Fambro-Echols’ residence in Hapeville.  They found 661 Treasury checks totaling over $590,000.  Almost all of the checks discovered during the search were dated from April 8 to 19, 2011, and thus stolen over less than a two-week period.

On March 7 and 11, 2012, Eason stole over 1,300 Treasury checks worth more than $2.8 million.  Federal agents video recorded him stealing the checks at the mail facility and then observed him drive the checks to a residence, where he thought they would be distributed to co-conspirators who would cash them.  He was arrested while attempting to collect his portion of the proceeds from the second delivery.

Eason and Fambro-Echols stole millions in U.S. Treasury checks during their employment with the U.S. Postal Service.  Wendy Frasier and Daralyn M. Weaver acted as brokers for Fambro-Echols.  They recruited others to cash the stolen checks at banks and business establishments.  Jabril O. McKee and Ohmar D. Braden worked as check cashers in the scheme, negotiating stolen checks with the help of fake identification documents and sharing the proceeds with their co-conspirators.  In March 2011, McKee and Braden were arrested at a BestBank in Decatur, Georgia attempting to negotiate a stolen Social Security check while impersonating the intended recipient of the check.

United States District Judge Charles A. Pannell, Jr. sentenced Eason, Fambro-Echols, and Weaver today, and previously sentenced McKee and Braden:

• Gerald Eason, 47, of Stockbridge, Georgia, was sentenced to 7 years, 3 months in prison, to be followed by 3 years of supervised release, and fined $15,000.

• Deborah Fambro-Echols, 50, of Hapeville, Georgia, was sentenced to 6 years, 6 months in prison, to be followed by 3 years of supervised release, and fined $12,500.

• Daralyn M. Weaver, 31, of Atlanta, Georgia, was sentenced to 3 years in prison, to be followed by 3 years of supervised release, and fined $5,000.

• Jabril O. McKee, 25, of Riverdale, Georgia, was sentenced on January 30, 2013, to two years, four months in prison, to be followed by three years of supervised release, and fined $3,000.

• Ohmar D. Braden, 37, of Covington, Georgia, was sentenced on December 18, 2012, to two years, four months in prison, to be followed by three years of supervised release, and fined $2,000.

The sentencing for Wendy Frasier, 35, of Atlanta, Georgia is scheduled for March 14, 2013 at 4 p.m. by United States District Judge Charles A. Pannell, Jr.

This case was investigated by the United States Secret Service; United States Postal Service, Office of Inspector General; Social Security Administration, Office of Inspector General; United States Postal Inspection Service; U.S. Department of Veterans Affairs, Office of Inspector General; U.S. Department of the Treasury, Office of Inspector General; Georgia Department of Revenue, Office of Special Investigations; and DeKalb Police Department; with valuable assistance provided by the Fulton County Sheriff’s Office. 

This case was brought as part of the U.S. Attorney’s Stolen Treasury Check Task Force.  The Task Force is an informal group of 14 federal, state, and local law enforcement agencies working together to address the problem of stolen U.S. Treasury checks in the Northern District of Georgia.

Assistant United States Attorneys Stephen H. McClain, Loranzo M. Fleming, Christopher C. Bly, and Jeffrey Viscomi 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.

Defendant Refused To Appear In Court During Trial And Sentencing

ATLANTA – An Atlanta man was sentenced today by United States District Judge Julie E. Carnes to 30 years on charges of bank fraud, credit card fraud, and aggravated identity theft.  Jean-Daniel Perkins, 37, of Atlanta, Georgia was convicted of defrauding American Express, SunTrust Bank, and hundreds of individual credit card holders.

United States Attorney Sally Quillian Yates said of today’s sentencing, “This defendant was a habitual fraudster and a world-class manipulator.  He bought, sold, and traded in other people’s personal information to enrich himself, and he tried to manipulate the court system to his own advantage.  Today’s sentence reflects the seriousness of his crimes.”

Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI remains committed in conducting such investigations that help build solid criminal prosecutions against aggressive fraudsters such as Mr. Perkins.  Today’s sentencing not only holds Mr. Perkins accountable for his actions but puts an end to his reckless victimization of others through his fraudulent financial schemes.”

Perkins was sentenced to 30 years, to be followed by 5 years of supervised release. He was also ordered to pay $510,509 in restitution.  Perkins was convicted on June 27, 2011 after a five-day jury trial.

Judge Carnes orally pronounced the sentence on a “tentative” basis because Perkins refused to leave his jail cell to be escorted to the courtroom for the sentencing hearing.  Perkins further refused to meet with his lawyer to discuss the potential sentence.

Perkins, who also was is in custody at the time of his trial, refused to attend court during the trial as well.  Instead, he viewed a live video and audio feed of the proceedings while remaining in a cell at the courthouse.  Because Perkins was not present at the sentencing, Judge Carnes gave him 30 days to file any objections to her oral sentence, after which it will become final.

According to United States Attorney Yates and the evidence and testimony at trial and sentencing:  From November 2008 through February 2010, Perkins executed several different fraud schemes in Atlanta.  An undercover FBI agent, posing as an employee of a company with financial data, made contact with Perkins, offering to make the sensitive financial data available to Perkins.  The undercover agent ultimately met in person with Perkins, who gave the agent a dozen counterfeit credit cards, and the two discussed a wide variety of criminal schemes involving financial data and credit cards.  The FBI agent recorded approximately 30 telephone calls with Perkins in which they discussed the schemes, and how the maximum amounts of money could be withdrawn from victim financial institutions and their customers.

The evidence at trial showed that, in one of his fraud schemes, Perkins purchased information needed to make credit cards, such as account numbers, from a source in Ukraine.  He then encoded credit cards with the data and used the cards.  The dozen credit cards Perkins gave to the FBI agent were in fact encoded with information obtained from the source in Ukraine.

The evidence at trial also showed that from February 2009 through February 2010, Perkins engaged in another fraud scheme in which he gained internal SunTrust account information and impersonated the account holders, resulting in the transfer of money from victim accounts to accounts under his control.  In one instance involving an account held by a local construction company, Perkins impersonated the company’s president, signed up for online banking services from SunTrust, and authorized transfers of over $3,500,000 from the company’s account to approximately 100 accounts under his control. Fortunately, SunTrust was able to recover the transferred money before Perkins spent it.

In yet another fraud scheme, Perkins set up numerous fictitious merchant accounts with American Express.  The evidence at trial showed that Perkins set up the merchant accounts at American Express to allow him to accept American Express credit cards as payment for nonexistent goods and services.  Perkins, using stolen American Express credit card account numbers, then ran American Express credit card transactions through the merchant accounts, resulting in American Express paying millions of dollars to the fictitious merchants.  The American Express credit cards used by Perkins belonged to hundreds of individual credit card holders. 

On the day of Perkins’ arrest, law enforcement officials recovered dozens of counterfeit credit cards from Perkins, as well as digital media connecting Perkins to the fraud schemes.  On the same day, law enforcement seized from Perkins’ apartment hundreds of counterfeit credit cards; items used to make counterfeit credit cards; including a device used for encoding cards with stolen credit card information; machines used to make counterfeit identification cards; items purchased with counterfeit credit cards; and additional digital evidence linking Perkins to several of the fraud schemes. In total, Perkins had approximately 100,000 credit card numbers on his digital devices.

This case was investigated by Special Agents of the Federal Bureau of Investigation and the Duluth Police Department.

Former Assistant United States Attorneys Robert McBurney and Nick Oldham, and Assistant United States Attorneys Lawrence Sommerfeld and Kurt Erskine 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.

Defendants Charged With Providing Security for Undercover Cocaine Transactions

ATLANTA – Seven Metro Atlanta police officers, two former DeKalb County jail officers, a contract officer with Federal Protective Services, and five others have been charged with accepting thousands of dollars in cash payments to provide protection during drug deals in a federal undercover operation.  

The defendants are making their initial appearances today before United States Magistrate Judge Alan J. Baverman.  U.S. Attorney Sally Quillian Yates announced the case during a press conference today at the Richard Russell Federal Building, joined by FBI Special Agent in Charge Mark Giuliano and ATF Special Agent in Charge Scott Sweetow.  Atlanta Police Department Chief George Turner, DeKalb Interim Police Chief Lisa Gassner, Forest Park Police Department Chief Dwayne Hobbs, MARTA Police Department Chief Wanda Dunham, DeKalb County Sheriff Thomas Brown, Stone Mountain Police Department Chief Chauncy Troutman, and Federal Protective Service District Commander Jim Longanecker also attended the press conference.

United States Attorney Yates said, “This is a troubling day for law enforcement in our City.  The law enforcement officers charged today sold their badges by taking payoffs from drug dealers that they should have been arresting.  They not only betrayed the citizens they were sworn to protect, they also betrayed the thousands of honest, hard-working law enforcement officers who risk their lives every day to keep us safe.  We will continue to work with our local law enforcement partners to pursue this corruption wherever it lies.” 

Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “In recognizing the need for the criminal justice system and those who work within that system to firmly have the public’s trust, the FBI considers such public corruption investigations as being crucial.  The FBI will continue to work with its various local, state, and other federal law enforcement agencies in ensuring that the public’s trust in its law enforcement officers is well deserved.”

“Corrupt public officials undermine the fabric of our nation’s security, our overall safety, the public trust, and confidence in those chosen to protect and serve,” said ATF Special Agent in Charge Scott Sweetow. “The corruption and abuse of power exemplified in this case can tarnish virtually every aspect of society.”

The law enforcement officers arrested today were: Atlanta Police Department (APD) Officer Kelvin Allen, 42, of Atlanta; DeKalb County Police Department (DCPD) Officers Dennis Duren, 32, of Atlanta and Dorian Williams, 25, of  Stone Mountain, Georgia; Forest Park Police Department (FPPD) Sergeants Victor Middlebrook, 44, of Jonesboro, Georgia and Andrew Monroe, 57, of Riverdale, Georgia; MARTA  Police Department (MARTA) Officer Marquez Holmes, 45, of Jonesboro, Georgia; Stone Mountain Police Department (SMPD) Officer Denoris Carter, 42, of  Lithonia, Georgia, and contract Federal Protective Services Officer Sharon Peters, 43, of Lithonia, Georgia. Agents also arrested two former law enforcement officers: former DeKalb County Sheriff’s Office (DCSO) jail officers Monyette McLaurin, 37, of Atlanta, and Chase Valentine, 44, of Covington, Georgia.

Others arrested today were: Shannon Bass, 38, of Atlanta; Elizabeth Coss, 35, of Atlanta; Gregory Lee Harvey, 26, of Stone Mountain, Georgia; Alexander B. Hill, 22, of Ellenwood, Georgia; and Jerry B. Mannery, Jr., 38, of Tucker, Georgia.

According to United States Attorney Yates, the charges and the criminal complaints: 

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

In affidavits filed in support of the charges, an FBI agent described how drug traffickers sometimes recruit law enforcement officers to maintain a physical presence at drug deals.  The traffickers hope that the officers’ presence at the drug deals will prevent rival drug groups from intervening and stealing their drugs or money, and also keeps legitimate law enforcement officers away from the scene.  In return for the corrupt officers’ services, the drug dealers often pay the officers thousands of dollars, according to the affidavits.

Acting at the direction of FBI and ATF, the cooperator communicated to gang members and their associates that the cooperator sought police protection for upcoming drug deals.  In response, three individuals—Bass, Coss, and Mannery—while not law enforcement officers themselves, provided the cooperator with the names of police officers who wanted to provide security for drug deals.  Once these officers were identified, FBI and ATF agents arranged with the cooperator, as well as with Bass, Coss, and/or Mannery, for the officers to provide security for drug transactions that were described in advance to involve the sale of multiple kilograms of cocaine.   The individuals charged today participated in undercover drug sales involving agents and/or cooperators, during which the agents and/or cooperators exchanged cash for kilograms of sham cocaine.  The police officers, usually in uniform and displaying a weapon and occasionally in their police vehicles, patrolled the parking lots where the deals took place and monitored the transactions.  These transactions were audio and video recorded.

The defendants arrested today include the seven police officers and one contract federal officer who protected the undercover drugs deals, as well as two former sheriff’s deputies who falsely portrayed themselves to be current deputies, and two individuals who falsely represented themselves as officers despite having no connection to a local police department.  The defendants also include four individuals who are not law enforcement officers but who acted as intermediaries between the agents and/or cooperators and corrupt officers and also assisted with the scheme. 

Specifically, the undercover investigation included the following transactions:

DeKalb County Police Department

Between October 2011 and November 2011, DeKalb County Police Officer Dennis Duren, working together with Bass, provided protection for what he and Bass believed were four separate transactions in the Atlanta area that involved multiple kilograms of cocaine.  Duren and Bass accepted cash payments totaling $8,800 for these services.  During the transactions, Duren was dressed in his DeKalb County Police uniform and carried a gun in a holster on his belt, as he patrolled on foot in the parking lots in which the undercover sales took place.  After the first two transactions, Duren allegedly offered to drive his patrol vehicle to future transactions for an additional $800 fee, and afterward received an additional $800 in cash for using his patrol vehicle in the final transaction in November 2011.  Duren and Bass are each charged with conspiring to commit extortion by accepting bribe payments and attempted possession with intent to distribute more than five kilograms of cocaine.  Duren also is charged with possessing a firearm in furtherance of a drug trafficking crime.

Between January and February 2013, DeKalb County Police Officer Dorian Williams, working together with Mannery and Bass, provided protection for what he and Mannery believed were three separate transactions in the Atlanta area that involved multiple kilograms of cocaine.   Williams and Mannery accepted cash payments totaling $18,000 for these services.  During the transactions, Williams was dressed in his DeKalb County Police uniform and carried a gun in a holster on his belt, and he patrolled the parking lots in which the undercover sales took place in his DeKalb Police vehicle.  During a meeting between the three transactions, Williams allegedly instructed Bass to remove any cocaine from the scene if Williams had to shoot someone during the upcoming sale.  In another meeting, Williams suggested that future drug transactions should take place in the parking lot of a local high school during the afternoon, so that the exchange of backpacks containing drugs and money would not look suspicious.  Williams and Mannery are each charged with conspiring to commit extortion by accepting bribe payments and attempted possession with intent to distribute more than five kilograms of cocaine.   

Stone Mountain Police Department

Between April and September 2012, Stone Mountain Police Officer Denoris Carter, working together with Mannery, provided protection for what he and Mannery believed were five separate transactions in the Atlanta area that involved multiple kilograms of cocaine.   For these services, Carter and Mannery accepted cash payments totaling $23,500.  For all five transactions, Carter dressed in his Stone Mountain Police uniform.  In four of the deals, he arrived in his police cruiser and either patrolled or parked in the parking lots in which the undercover sales took place and watched the transactions.  During the final transaction in September 2012, Carter was on foot, displaying a firearm in a holster on his belt, and he walked through the parking lot in which the transaction took place and watched the participants.   Finally, during one of the transactions, Carter agreed to escort the purchaser of the sham cocaine in his police vehicle for several miles, until the purchaser reached Highway 78.  Carter is charged with conspiring to commit extortion by accepting bribe payments, attempted possession with intent to distribute more than five kilograms of cocaine, and possessing a firearm in furtherance of a drug trafficking crime. 

Atlanta Police Department

Between June and August 2012, Atlanta Police officer Kelvin D. Allen, working together with Coss, provided protection for what he and Coss believed were three separate transactions in the Atlanta area that involved multiple kilograms of cocaine.   Allen and Coss accepted cash payments totaling $10,500 for their services.  For two transactions, Allen dressed in his Atlanta Police uniform and carried a gun in a holster on his belt.  Allen patrolled on foot in parking lots in which the undercover sales took place and appeared to be monitoring the transactions.  During a meeting after the three transactions, a cooperator gave Allen and Coss each a $1,000 bonus payment in return for protecting the three transactions.  Allen and Coss are each charged with conspiring to commit extortion by accepting bribe payments and attempted possession with intent to distribute more than five kilograms of cocaine.  Allen also is charged with possessing a firearm in furtherance of a drug trafficking crime.

MARTA Police Department

Between August and November 2012, MARTA Police Department Officer Marquez Holmes, working together with Coss, provided protection for what he and Coss believed were four separate transactions in the Atlanta area that involved multiple kilograms of cocaine.   For these services, Holmes and Coss accepted cash payments totaling $9,000.  During the transactions, Holmes was dressed in his MARTA Police uniform and carried a gun in a holster on his belt.  In two of the transactions, Holmes patrolled on foot in the parking lots in which the undercover sales took place and monitored the transactions.  During the other two deals, Holmes drove to the site in his MARTA police cruiser and parked next to the vehicles in which the undercover drug sale took place.  Holmes is charged with conspiring to commit extortion by accepting bribe payments, attempted possession with intent to distribute more than five kilograms of cocaine, and possessing a firearm in furtherance of a drug trafficking crime.

Forest Park Police Department

Between October to December 2012, Forest Park Police Sergeants Victor Middlebrook and Andrew Monroe, sometimes working alone and at other times together, provided protection for what they believed were six separate drug deals in the Atlanta area, all involving multiple kilograms of cocaine.   For his services in the first four transactions, Middlebook accepted cash payments totaling $13,800.  During these transactions, Middlebrook wore plain clothes, but displayed his badge and a firearm in a holster on his belt.  He patrolled on foot in the parking lots nearby the vehicles in which the undercover sales took place and appeared to be monitoring the transactions.  For the final two transactions, both Middlebrook and Monroe provided security and were given cash payments totaling $10,400.  Middlebrook again monitored the transactions on foot in plain clothes while displaying his badge and gun, while Monroe watched from his vehicle in the parking lot and afterward escorted the purchaser of the sham cocaine for several miles.  Middlebrook and Monroe are charged with conspiring to commit extortion by accepting bribe payments and attempted possession with intent to distribute more than five kilograms of cocaine; Middlebrook is also charged with possession of a firearm in furtherance of a drug trafficking crime.  

DeKalb County Sheriff’s Office

In January 2013, former DeKalb County Sheriff Jail Officer Monyette McLaurin, working together with Harvey, provided protection for what they believed were two separate drug transactions in the Atlanta area that involved multiple kilograms of cocaine.   Harvey already had provided security for two undercover drug transactions in December 2012, falsely representing that he was a DeKalb County detention officer and wearing a black shirt with the letters “SHERIFF” printed across the back during the transactions.  Harvey then stated that he knew other police officers who wanted to protect drug deals, and in January 2013 he introduced McLaurin as one of these officers.  During a meeting to discuss future drug transactions, McLaurin falsely represented that he was a deputy employed by the DeKalb Sheriff’s office, even though his position as a jail officer ended in 2011.  McLaurin and Harvey further stated during this meeting that they may need to kill another person who knew that Harvey had protected drug deals, if this person reported the activity to others. 

During the two transactions in January 2013, McLaurin was dressed in a DeKalb County Sheriff’s Office uniform with a badge, and he carried a gun in a holster on his belt.  He accompanied the undercover seller of the cocaine to pick up the drugs from a warehouse, counted the kilograms the seller received, and stood outside the purchaser’s vehicle during the actual transaction.  He further discussed with the seller whether they should agree upon a signal for the seller to indicate that the sale had gone awry, requiring McLaurin to shoot the drug buyer.  For their services, McLaurin and Harvey were paid $12,000 in cash.  McLaurin and Harvey are each charged with attempted possession with intent to distribute more than five kilograms of cocaine and with possessing a firearm in furtherance of a drug trafficking crime.

Later in January 2013, McLaurin and Harvey introduced a second former DeKalb County Sheriff’s Jail Officer, Chase Valentine, to help provide security for future drug deals.  Like McLaurin, Valentine falsely represented himself to be a DeKalb County Sheriff’s Deputy, even though his position as a jail officer ended in 2010.  Together with Harvey, Valentine provided security for one undercover drug transaction on January 17, 2013, during which he wore a DeKalb Sheriff’s Office uniform and a pistol in a holster on his belt.  During the transaction, Valentine escorted the seller to pick up the sham cocaine, counted the number of kilograms delivered, and stood outside the purchaser’s car during the actual transaction.  For these services, Valentine received $6,000 in cash.  Valentine is charged with attempted possession with intent to distribute more than 500 grams of cocaine and possession of a firearm in furtherance of a drug trafficking crime.

Federal Protective Services

In November 2012, Sharon Peters, who was a contract officer for the Federal Protective Services, worked together with Mannery to provide protection for what they believed were two separate transactions in the Atlanta area that involved multiple kilograms of cocaine.   For these services, Peters and Mannery accepted cash payments totaling $14,000.  For both transactions, Peters parked her vehicle nearby the cars where the sham drugs and money were exchanged, and watched the transactions.  Before both transactions, Peters told others that she had her pistol with her in the car.  Peters is charged with attempted possession with intent to distribute more than five kilograms of cocaine, and possession of a firearm in furtherance of a drug trafficking crime. 

Imposter Clayton County Police Officer

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

Each charge of attempted possession with intent to distribute at least five kilograms of cocaine carries a maximum penalty of life imprisonment, a mandatory minimum sentence of 10 years in prison and a fine up to $10,000,000.   Each charge of attempted possession with intent to distribute at least 500 grams of cocaine carries a maximum penalty of 40 years in prison, a mandatory minimum sentence of five years in prison and fine of up to $5,000,000.  Each charge of possession of a firearm in furtherance of a drug trafficking crime carries a maximum penalty of life imprisonment, a mandatory minimum sentence of five years in prison and a fine of up to $250,000.  Each charge of conspiring to commit extortion by accepting bribe payments carries a maximum sentence of 20 years in prison and 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 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.

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

Assistant United States Attorneys Kim Dammers, Jill Steinberg and Brent Alan Gray are prosecuting these cases.

           

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

Attachments:

• Bass, Shannon Criminal Complaint
• Coss, Elizabeth Criminal Complaint
• Harvey, Gregory Lee Criminal Complaint
• Mannery, Jerry B Jr. Criminal Complaint

Defendant Allegedly Stole Approximately $800,000 from His Business Investors

ATLANTA – The co-founder of Geometrix has been charged in a federal criminal information with defrauding business investors of approximately $800,000.  Kevin Patrick Loughery, 49, of Atlanta, Georgia, who co-founded Geometrix in 2007, was arraigned today before United States Magistrate Judge Alan J. Baverman on the federal charge of wire fraud, and was released on bond.

“Instead of keeping his business investors’ funds secure in an escrow account, the defendant is charged with using hundreds of thousands of dollars to support his lavish lifestyle,” stated United States Attorney Sally Quillian Yates.  “The charges against Loughery reflect our ongoing commitment to crack down on investment fraud.”

Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “When the defendant diverted investor funds to his personal account, he left behind his multiple investors-turned-victims now suffering substantial financial losses while he pursued a life of affluence.  The FBI remains well-suited and committed to investigating such cases of wire fraud that often significantly impact many victims.”

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 the investor would receive 400,000 shares of Geometrix for his investment. The investor never received those shares. 

In total, Loughery solicited $780,000 in investments from various investors that were supposed to be kept in escrow but instead were spent by Loughery.  Loughery subsequently declared bankruptcy. 

This case was investigated by special agents of 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 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 Was Charged in Atlanta and Washington, D.C.
With Sexually Abusing Inmates

ATLANTA - Dr. Lewis Jackson, 34, of Atlanta, was sentenced today in federal district court for sexually assaulting three inmates at the United States Penitentiary in Atlanta while employed as a physician with the U.S. Bureau of Prisons.  Jackson was sentenced to 2 years, 1 month in prison by United States District Court Judge Amy Totenberg.  He is awaiting sentencing in the District of Columbia where he pleaded guilty in January to sexually assaulting an inmate while working at the District of Columbia jail.

United States Attorney Sally Quillian Yates said, “The federal inmates who relied on Dr. Jackson for their care believed he would treat them humanely.  He exploited this trust when he sexually abused three inmates at the United States Penitentiary in Atlanta and another inmate at the District of Columbia jail.  His conduct cost him his license to practice medicine and ensured he will spend the next several years as an inmate himself.”

This case was investigated by Special Agents of the Department of Justice Office of the Inspector General (OIG).  Inspector General Michael E. Horowitz stated:  “Dr. Jackson’s actions victimized inmates and undermined the good work of the correctional staff at USP Atlanta.  The OIG will not tolerate conduct by Justice Department employees that risks the safety of inmates and correctional officers.”

According to United States Attorney Yates, the charges and other information presented in court, from January, 2011 through July, 2012, Jackson was a physician at the United States Penitentiary (USP) in Atlanta where he provided medical care to inmates in USP's medical ward.  The USP houses medium security male inmates and has a satellite camp for minimum security male inmates.

In October 2011, Jackson molested three inmates who were seeking medical treatment at the USP.  When confronted by special agents with the Department of Justice’s, Office of Inspector General, Jackson originally denied engaging in the sex acts.  After agents played an undercover recording made by one of the inmates, however, Jackson admitted he sexually assaulted the inmates.

Jackson recently pleaded guilty in the Superior Court of the District Columbia to three counts of sexually abusing another inmate in the District of Columbia Jail in 2008.  According to that indictment, Jackson performed a series of sex acts on the inmate after he sought medical treatment from Jackson.  Jackson was on bond in that case at the time of his arrest in Atlanta.

This case is being investigated by Special Agents of the Department of Justice, Office of Inspector General.

Assistant United States Attorney Kurt R. Erskine is 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.