Northern District of Georgia

ATLANTA - Attorney General Pamela Bondi has appointed Theodore S. Hertzberg as Interim United States Attorney for the Northern District of Georgia pursuant to 28 U.S.C. § 546, which provides that “the Attorney General may appoint a United States [A]ttorney for the district in which the office of United States [A]ttorney is vacant.” This appointment took effect on May 13, 2025. Chief U.S. District Judge Timothy C. Batten, Sr. administered Mr. Hertzberg’s oath of office on May 14, 2025.

Mr. Hertzberg previously served as an Assistant U.S. Attorney for nearly ten years. His tenure with the Justice Department began in the Savannah headquarters of the U.S. Attorney’s Office for the Southern District of Georgia. In Savannah, Mr. Hertzberg prosecuted violent criminals, drug dealers, fraudsters, and money launderers while also serving as chief of the asset forfeiture section. Upon relocating to Atlanta in 2018, Mr. Hertzberg transferred to the U.S. Attorney’s Office for the Northern District of Georgia, where he prosecuted gang leaders, child sex predators, gun traffickers, armed felons, and other dangerous offenders.

Before joining the Department of Justice, Mr. Hertzberg practiced law in the New York office of Kramer Levin Naftalis & Frankel LLP, and he served as a law clerk to the Honorable Kristi K. DuBose of the U.S. District Court for the Southern District of Alabama.

U.S. Attorney Hertzberg is a graduate of Amherst College and New York University School of Law.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6280. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

A Georgia attorney was sentenced today to 16 months in prison for obstructing the IRS in connection with his participation in the promotion of abusive syndicated conservation easement tax shelters.

The following is according to court documents and statements made in court: Vi Bui was an attorney and partner at Sinnott & Co., an Atlanta-based company. Beginning at least in 2012 and continuing through at least May 2020, Bui participated in a scheme to defraud the IRS by organizing, marketing, implementing, and selling illegal syndicated conservation easement tax shelters created and organized by co-conspirators Jack Fisher, James Sinnott, and others. Fisher and Sinnott were convicted at trial for their involvement in the scheme, and in January 2024, they were sentenced to 25 and 23 years in prison, respectively.

The scheme entailed the creation of partnerships that purchased land and land-owning companies and then donated conservation easements over that land or the land itself. Appraisers generated fraudulent and inflated appraisals of the conservation easements. The partnerships then claimed a charitable contribution tax deduction based on the inflated value of the conservation easement, resulting in a fraudulent tax deduction flowing to the wealthy clients who purchased units in the partnership. Many of these clients joined the tax shelters after the donation of the interest in land and after the end of the relevant tax year. Bui knew that in order to make it appear that the participants had timely purchased their units in the tax shelters, Fisher, Sinnott, and others backdated and instructed others to backdate documents, including subscription agreements, checks, and other documents.

Bui anticipated that the syndicated conservation easement transactions would be audited. In order to deceive the IRS, Bui and others took steps to make the partnerships appear as legitimate real estate development companies. They created and disseminated lengthy documents disguising the true nature of the transaction, instituted sham “votes” for what to do with the land that the partnership owned despite knowing that outcome was predetermined, and falsified paperwork such as appraisals and subscription agreements.

In one instance, when investigators conducted an undercover operation in 2018, Bui, believing that the IRS was auditing an individual’s tax returns, prepared false documents related to a 2014 syndicated conservation easement tax shelter with the intent to make it appear that the documents were executed before the purported donation of the conservation easement in 2014 and before the 2014 tax returns had been filed.

Bui earned substantial income for his role in the illegal scheme. He also used the fraudulent tax shelters to evade his own taxes, filing false personal tax returns from 2013 through 2018 that claimed false tax deductions from the illegal syndicated conservation easement tax shelters.

In addition to his prison sentence, U.S. District Court Chief Judge Timothy C. Batten Sr. for the Northern District of Georgia ordered Bui to serve one year of supervised release and to pay $8,250,244 in total restitution to the IRS.

Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and U.S. Attorney Theodore S. Hertzberg for the Northern District of Georgia made the announcement. They also thanked the U.S. Attorney’s Office for the Western District of North Carolina for their assistance in the investigation of this matter.

IRS Criminal Investigation and the U.S. Postal Inspection Service investigated the case.

Senior Litigation Counsel Richard M. Rolwing, and Trial Attorneys Parker Tobin, Jessica Kraft, and Nicholas Schilling of the Tax Division prosecuted the case, with support from Assistant U.S. Attorney Samir Kaushal for the Northern District of Georgia. 

ATLANTA – In honor of National Police Week, Acting U.S. Attorney Richard S. Moultrie, Jr. recognizes the service and sacrifice of federal, state, local, and Tribal law enforcement. This year, the week is observed Sunday, May 11, 2025, through Saturday, May 17, 2025.

“Law enforcement officers faithfully and selflessly help to protect our families, friends, and neighbors while risking their own lives to safeguard the public,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “We owe these men and women our gratitude and support for the dedication and bravery they display each day, often through unpublicized altruistic acts of service to the community.”

In 1962, former U.S. President John F. Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices.  During National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty, and commitment to keeping our communities safe.

The National Law Enforcement Officer Memorial Fund’s report indicates that 148 law enforcement officers died in the line of duty in 2024 (https://nleomf.org/memorial/facts-figures/roll-call-of-heroes/). Here, in the Northern District of Georgia, we solemnly commemorate the seven officers who tragically died in the line of duty within the past year and solemnly extend our regards to their families, for especially whom the impact of the loss is ongoing:

• Deputy Sheriff Brandon Tyler Cunningham, Paulding County, GA, Sheriff's Office, End of Watch: Saturday, August 17, 2024.
• Investigator Taylor Jaimeson Bristow, Carroll County, GA, Sheriff's Office, End of Watch: Friday, August 23, 2024.
• Deputy Sheriff Eric Anthony Minix, Coweta County, GA, Sheriff's Office, End of Watch: Thursday, January 4, 2024.      
• Trooper Jimmy Cenescar. Georgia State Patrol, End of Watch: Sunday, January 28, 2024.
• Police Officer Jeremy R. Labonte, Roswell, GA, Police Department, End of Watch: Friday, February 7, 2025.
• Trooper First Class Chase Winston Redner, Georgia State Patrol, End of Watch: Tuesday, February 20, 2024.
• Captain Helio Armando Garcia, III, South Fulton, GA, Police Department, End of Watch: Wednesday, April 16, 2025.

Also each year, the National Law Enforcement Officer Memorial Fund in Washington, D.C. hosts an Annual Candlelight Vigil to memorialize those who sacrificed their lives. The names of hundreds of officers killed in the line of duty are engraved on the walls of the Memorial and their names will be read aloud during this year’s 37th annual vigil scheduled for tomorrow, on Tuesday, May 13, 2024, at 8 PM (https://nleomf.org/memorial/programs/national-police-week-2025/candlelight-vigil/). The vigil will livestream on YouTube: YouTube.com/NLEOMF and Facebook: Facebook.com/NLEOMF.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6280. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Orville Andrew Pernell, also known as “Oneil Christopher Reid,” 32, of Saint Mary, Jamaica, was arraigned today before the Honorable John K. Larkins, III, United States Magistrate Judge, on a federal charge of possession of a firearm by an alien illegally or unlawfully present in the United States.  Pernell was indicted by a federal grand jury seated in the Northern District of Georgia on April 23, 2025.

“Pernell is an international fugitive who was charged with murder before escaping custody in both Saint Lucia and Jamaica, and then unlawfully entering the United States under a false identity,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “Our office is proud of the collaborative work of our United States, Saint Lucian, and Jamaican law enforcement partners whose efforts resulted in Pernell’s identification and apprehension.”

“Law enforcement collaboration is instrumental in apprehending violent individuals locally and internationally,” said Assistant Special Agent in Charge Beau Kolodka. “This arraignment sends a direct message to criminals that ATF and our local and international law enforcement partners will investigate and protect its citizens.”

“This case demonstrates the far-reaching impact of Homeland Security Investigations in identifying and apprehending fugitives who pose a threat to public safety across international borders,” said Steven N. Schrank, the Special Agent in Charge of Homeland Security Investigations in Georgia and Alabama. “Pernell’s ability to evade law enforcement in multiple countries and unlawfully enter the United States under a false identity underscores the importance of strong global partnerships. Thanks to the coordinated efforts of HSI and our domestic and international counterparts, a dangerous individual is now off the streets and facing justice.”

According to Acting U.S. Attorney Moultrie, Jr., the charges, and other information presented in court: Pernell was charged with the murder of Clius Alfred in Saint Lucia on October 8, 2020.  He then escaped custody in Saint Lucia while awaiting trial.  He was arrested in Jamaica on July 21, 2021, but then escaped Jamaican custody while awaiting his extradition to Saint Lucia.

Pernell was then encountered by immigration authorities on December 7, 2022, when he attempted to illegally enter the United States via an unmanned border area near the San Ysidro point of entry.  He gave the false name of “Oneil Christopher Reid” and was allowed to enter the United States pending further immigration proceedings.

On July 21, 2023, Pernell, using the Reid alias, was stopped by the Clayton County, Georgia, Sheriff’s Office after being observed traveling 115 miles per hour on a motorcycle.  He attempted to flee but was forced to stop after he encountered a heavily congested intersection.  Once he was stopped, officers determined that the motorcycle he was driving was stolen. During a search that followed, officers found a firearm in the front pocket of his jacket.  Officers also determined that the firearm was stolen from a Southern Freight Lines firearms shipment.  He was arrested for possession of a stolen motorcycle, possession of a stolen firearm, and attempting to evade arrest.

Pernell is facing federal charges of possession of a firearm by an alien illegally or unlawfully present in the United States.  He has been ordered detained pending trial, and is subject to removal and extradition back to Saint Lucia once the proceedings in the United States are concluded.

Members of the public are reminded that the indictment only contains a charge.  The defendant is presumed innocent of the charge 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 Bureau of Alcohol, Tobacco, Firearms and Explosives and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.

Assistant United States Attorney Benjamin Wylly is prosecuting the case.

This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6280.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA – Six members of a drug trafficking organization have been sentenced for their roles in distributing deadly fentanyl and methamphetamine throughout the metro-Atlanta area.

“These defendants distributed substantial amounts of fentanyl and methamphetamine with no regard for the grave public safety risk,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “Our Office will continue to closely coordinate with our federal, state, and local law enforcement partners to prosecute drug traffickers and prevent dangerous narcotics from poisoning our communities.”

“These drug traffickers endangered countless lives by distributing large quantities of deadly fentanyl and methamphetamine,” Jae W. Chung, the Acting Special Agent in Charge of the DEA Atlanta Division commented on the case. “DEA will continue to aggressively pursue the criminals that contribute to the drug crisis.”

“This case highlights the critical role Homeland Security Investigations plays in dismantling transnational drug trafficking organizations operating in our communities,” said Steven N. Schrank, Special Agent in Charge of Homeland Security Investigations in Georgia and Alabama. “The defendants in this case were responsible for introducing massive quantities of deadly narcotics into the metro-Atlanta area—methamphetamine that was trafficked across borders, chemically altered, and distributed without regard for the devastating impact on public health and safety. Through the combined efforts of HSI and our federal, state, and local partners, we’ve disrupted a dangerous supply chain and brought key members of this organization to justice.”

According to Acting U.S. Attorney Moultrie, the charges, and other information presented in court: In 2022, federal special agents discovered that a drug trafficking organization (DTO) was distributing drugs obtained from a Mexico-based supplier throughout metro-Atlanta. These drugs included methamphetamine which arrived from Mexico in liquid form and was converted to crystal methamphetamine.

During an early phase of the investigation, defendant Erik Rosales-Lopez was arrested in December 2022 at a residence used to process liquid methamphetamine that had been mixed with paint. Rosales Lopez had distributed methamphetamine on three previous occasions, including to an undercover agent. During a search of his residence, investigators seized 11 kilograms of finished crystal methamphetamine. 

In April 2023, agents surveilled defendants Brayan Garcia-Picasso and Bryan Pacheco-Carranza as they left a residence believed to be used as a methamphetamine lab. Local law enforcement then conducted a traffic stop of their vehicle. Police officers seized approximately 16 kilograms of methamphetamine during a search of the vehicle. Agents later searched the residence as well and, while doing so, confirmed that the location was a methamphetamine lab. The agents found approximately six kilograms of methamphetamine and methamphetamine conversion equipment on the premises.

Following the arrests of Garcia-Picasso and Pacheco-Carranza, agents continued to investigate the DTO. In June 2023, defendant Alex Chamorro-Valencia was arrested after a search of a vehicle he was driving was found to contain nearly a kilogram of methamphetamine. Investigators also searched the residence from which he was seen departing and discovered a second methamphetamine lab used by the DTO. Agents recovered 15 gallons of liquid methamphetamine and 135 kilograms of finished crystal methamphetamine in the residence. Defendant Hedgarciney Gameno-Cortez was encountered in the residence and arrested.  

The following defendants were convicted and sentenced:

• Juventino Rodriguez was sentenced earlier today by U.S. District Judge Victoria M. Calvert to 54 months in prison followed by four years of supervised release. Rodriguez was convicted of conspiracy to possess with intent to distribute fentanyl after he pled guilty on December 19, 2024.
• Garcia-Picasso was sentenced by U.S. District Judge Michael L. Brown to 12-and-a-half years in prison followed by four years of supervised release. Garcia-Picasso was convicted of conspiracy to possess with intent to distribute methamphetamine after he pled guilty on November 7, 2023.
• Pacheco-Carranza was sentenced by Judge Brown to six years in prison followed by three years of supervised release. Pacheco-Carranza was convicted of conspiracy to possess with intent to distribute methamphetamine after he pled guilty on January 18, 2024.
• Chamorro-Valencia was sentenced by U.S. District Judge Eleanor L. Ross to eight years in prison followed by four years of supervised release. Chamorro-Valencia was convicted of conspiracy to possess with intent to distribute methamphetamine and cocaine after he pled guilty on October 16, 2023.
• Hedgarciney Gameno-Cortez was sentenced by Judge Ross to eight years in prison followed by four years of supervised release. Gameno-Cortez was convicted of conspiracy to possess with intent to distribute methamphetamine and cocaine after he pled guilty on February 28, 2024.
• Erik Josue Rosales-Lopez was sentenced by U.S. District Judge Steven D. Grimberg to seven years in prison followed by three years of supervised release. Rosales-Lopez was convicted of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine after he pled guilty on July 31, 2023.

The case was investigated by the Drug Enforcement Administration and Department of Homeland Security’s Homeland Security Investigations, with valuable assistance from the Clayton County Police Department, Henry County Police Department, Georgia State Patrol, DeKalb County Police Department, Fulton County Sheriff’s Office, and Cobb County Sheriff’s Office.

Assistant U.S. Attorneys Lauren E. Renaud and Sandra E. Strippoli, and former Assistant U.S. Attorney Zachary Howard, prosecuted the case. 

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. The specific mission of the David G. Wilhelm Atlanta OCDETF Strike Force (Atlanta Strike Force) is to eliminate transnational organized crime syndicates and major drug trafficking and money laundering organizations in the Atlanta metropolitan area and the Northern District of Georgia. To accomplish this mission, the Atlanta Strike Force will target these organizations’ leaders, focusing on targets designated as Consolidated Priority Organization Targets, Regional Priority Organization Targets, and their associates.  The Atlanta Strike Force is comprised of agents and officers from ATF, DEA, FBI, HSI, USMS, USPIS, and IRS, as well as numerous state and local agencies; and the prosecution is being led by the Office of the United States Attorney for the Northern District of Georgia.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6280.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

NEWNAN, Ga. - Arthur Gene Young, a multi-convicted felon with a history of violence, has been sentenced to federal prison for unlawfully possessing a firearm while resisting police officers in a small west Georgia city.                                                                                                                                      

“Armed felons cannot be allowed to terrorize the citizens of our district,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “After Young was arrested with a firearm for the third time in two years, local law enforcement wisely sought federal assistance to ensure he would be removed from the community. We will continue to work with our partners at all levels to protect the public from gun violence and repeat violent offenders.”

“The law-abiding citizens of this community are safer because of today’s sentence which will ensure the incarceration of a dangerous criminal and contribute to the restoration of order and peace to this area,” said ATF Special Agent in Charge Benjamin Gibbons.  “This sentence sends a direct message to criminals that ATF and our local law enforcement partners will investigate violent criminals and protect citizens.”

“The partnership of local, state and federal law enforcement agencies is imperative to help local communities stay safe,” said Bremen Police Department Lieutenant Joshua Newman. “The Bremen Police Department would like to thank all the agencies and law enforcement officers that were involved in this case.”

According to Acting U.S. Attorney Moultrie, the charges and other information presented in court: On May 2, 2023, less than a month after his release from state prison for other criminal conduct, Arthur Gene Young shoplifted from a pharmacy located in Bremen, Georgia. He returned to the pharmacy the following morning and argued with the store manager. Police officers responded and, upon learning of the earlier shoplifting incident, escorted Young from the store to arrest him. Young refused to obey the officers’ commands and shouted that he would not go back to prison as he fled the scene. 

As officers pursued Young through the center of town and towards a church preschool, Young exclaimed that he was armed and demanded to be left alone. As additional officers responded, Young crossed a highway, scaled a berm, and walked onto an active train track. There, he grabbed the wrist and arm of a deputy sheriff who attempted to detain him. Ultimately, Young tripped, giving officers an opportunity to place handcuffs around one of his wrists. But Young fought the officers and refused to comply as the officers attempted to fully cuff him. During the struggle, one of the officers noticed the grip of a loaded 7.65mm semiautomatic pistol in Young’s right pants pocket. The officer managed to secure the weapon before Young was finally handcuffed. 

As a multi-convicted felon, Young was legally prohibited from possessing firearms. Young’s decade-long criminal record included convictions for crimes of violence, such as attempted robbery by intimidation and terroristic threats, as well as other offenses. Additionally, at the time of his arrest following the incident at the Bremen pharmacy, Young was under indictment and on pretrial release in three cases brought in 2021 and 2022 charging him with attempted armed robbery, attempted robbery by intimidation, and two counts each of felon in possession of a firearm, aggravated assault, and simple assault.

Arthur Gene Young, 34, of Bremen, Georgia, was sentenced on April 22, 2025, by Chief U.S. District Judge Timothy C. Batten, Sr. to 14 years in prison to be followed by three years of supervised release. Young was convicted of possession of a firearm by a prohibited person on January 14, 2025, after he pleaded guilty in the middle of a jury trial.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Bremen Police Department. The Haralson County Sheriff’s Office, Carroll County Sheriff’s Office, and Georgia State Patrol provided valuable assistance.

Assistant United States Attorneys Theodore S. Hertzberg and Amy M. Palumbo prosecuted the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6280. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA – Seven defendants have been sentenced for their roles in distributing fentanyl, methamphetamine, and other deadly drugs within and outside the metro-Atlanta area. Karla Lopez-Delgado, the ringleader, was also convicted of possessing methamphetamine with intent to distribute on a premises where a minor resided.                                                                                                                                      

“This case underscores our Office’s unwavering commitment to dismantle drug trafficking networks that threaten our communities with deadly substances,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “And the convictions that our Office and our federal and local partners achieved in this case further amplify our collective determination to relentlessly pursue and prosecute those who profit by distributing the drugs that harm our citizens. I commend the exceptional work of our law enforcement partners in bringing these defendants to justice.”

“Drug dealers who poison our communities will be held accountable. These sentences serve as a warning to anyone who thinks they can profit off addiction — we will find you, and you will be prosecuted,” said Steven N. Schrank, Special Agent in Charge of Homeland Security Investigations in Georgia and Alabama. “HSI and our partners remain relentless in our fight to shut down drug operations and protect the safety of our streets.”

According to Acting U.S. Attorney Moultrie, the charges, and other information presented in court: Beginning in 2022, HSI investigated a drug trafficking operation led by Karla Lopez-Delgado. She ran the organization with the assistance of Jonathon Torres-Aguirre, who, at the time, was incarcerated at Washington State Prison in Davisboro, Georgia. During the investigation, HSI agents seized methamphetamine and fentanyl from Lopez-Delgado’s customers on seven occasions.

When agents executed a search warrant at Lopez-Delgado’s Dunwoody apartment—a two-bedroom apartment she shared with her four-year-old daughter—they found approximately 4.5 kilograms of fentanyl, over 80 kilograms of methamphetamine, almost 20 kilograms of cocaine, and a handgun. Agents also found several cell phones with hundreds of conversations with Torres-Aguirre about their drug trafficking activities across the state of Georgia and into Alabama, North Carolina, and Tennessee.

The following defendants were sentenced by U.S. District Judge Steven D. Grimberg:

• Karla Lopez-Delgado was sentenced to 19 years, eight months in prison, followed by five years of supervised release, after she pleaded guilty.
• Jonathon Torres-Aguirre was sentenced to 12 years, seven months in prison, followed by five years of supervised release, after he pleaded guilty.
• Marco Camacho-Escobar was sentenced to 10 years, one month in prison, followed by three years of supervised release, after he pleaded guilty.
• Issac Duran-Gomez was sentenced to three years, seven months in prison,  followed by three years of supervised release, after he pleaded guilty.
• Carlos Santiago was sentenced to five years, three months in prison, followed by four years of supervised release, after he pleaded guilty.
• Bennie Shelton was sentenced to three years, ten months in prison, followed by five years of supervised release, after he pleaded guilty.
• Kiara Jones was sentenced to one year of home detention, followed by three years of supervised release, after she pleaded guilty.

This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, with invaluable assistance provided by U.S. Secret Service, the United States Marshals Service, Brookhaven Police Department, Bartow-Cartersville Drug Task Force, Cobb County Police Department, and Henry County Police Department.

Assistant United States Attorney Matthew R. LaGrone, and former Assistant United States Attorney Tyler Mann, prosecuted the case.

This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to eliminate the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.

The specific mission of the David G. Wilhelm Atlanta OCDETF Strike Force (Atlanta Strike Force) is to eliminate transnational organized crime syndicates and major drug trafficking and money laundering organizations in the Atlanta metropolitan area and the Northern District of Georgia. To accomplish this mission, the Atlanta Strike Force will target these organizations’ leaders, focusing on targets designated as Consolidated Priority Organization Targets, Regional Priority Organization Targets, and their associates.  The Atlanta Strike Force is comprised of agents and officers from ATF, DEA, FBI, HSI, USMS, USPIS, and IRS, as well as numerous state and local agencies; and the prosecution is being led by the Office of the United States Attorney for the Northern District of Georgia.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6280.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Alexander Arellano has been sentenced to federal prison for distributing large amounts of fentanyl in the Atlanta area while possessing firearms.

“Fentanyl traffickers pose a tremendous threat to public safety especially when they illegally possess firearms in furtherance of their drug trafficking crimes,” said Acting U.S. Attorney Richard S. Moultrie, Jr.  “Defendants like Arellano who peddle this poison in our communities are being held accountable, including through lengthy prison sentences, thanks to the collaborative work of our federal, state, and local law enforcement partners.”

“Arellano endangered countless lives by trafficking large quantities of deadly fentanyl,” Jae W. Chung, the Acting Special Agent in Charge of the DEA Atlanta Division commented on the case. “The success of this investigation is proof that those destroying our communities with fentanyl will be held accountable.” 

According to Acting U.S. Attorney Moultrie, the charges and other information presented in court:  On May 3, 2024, special agents of the Drug Enforcement Administration saw Arellano sell a half kilogram of fentanyl to another individual in a Marietta gas station parking lot.  Agents followed Arellano back to an apartment on Windy Hill Road in Marietta.  A short time later, Arellano was arrested at the apartment complex and agents obtained a federal search warrant for his apartment. 

During the search, agents found 10 kilograms of fentanyl, two loaded firearms, including an AK-47 pistol, and $120,000 in cash inside a bedroom belonging to Arellano.  Arellano had been previously convicted for trafficking methamphetamine and was on probation at the time of his arrest. 

Alexander Arellano, 25, of Atlanta, Ga., was sentenced on April 14, 2025, by United States District Judge William M. Ray II to 13 years, three months in prison, followed by four years of supervised release.  He was convicted of conspiracy to possess with intent to distribute a controlled substance and possession of a firearm in furtherance of a drug trafficking crime, after he pleaded guilty to the charges on August 29, 2024.

This case was investigated by the Drug Enforcement Administration, with valuable assistance provided by the Georgia Bureau of Investigation and the Cobb County Police Department.

Assistant United States Attorney Bethany L. Rupert prosecuted the case

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6280.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

On April 1, seven individuals in Georgia and Mexico were indicted by a federal grand jury seated in the Northern District of Georgia related to a drug trafficking and money laundering ring tied to a Mexico-based trafficker. Five of these defendants, all of Norcross, Georgia — Sandra Beatriz Hernandez Chilel, 49; Karina Beatriz Perez Hernandez, 22; David Miranda Vinalay, 39; Jerome Lewis, 47; and Irving Joel Hernandez, 34 — were arrested earlier today in a coordinated effort by the Drug Enforcement Administration (DEA), IRS Criminal Investigation (IRS-CI), and local law enforcement. The defendants were arraigned before a U.S. Magistrate Judge following their arrests.

“Thanks to the great investigative work of our federal partners and local law enforcement, five individuals working on behalf of the violent Cartel de Jalisco Nueva Generación (CJNG) have been taken off our streets,” said Attorney General Pamela Bondi. “We will not allow these criminal enterprises to continue profiting off of the death and destruction of American lives.”

“The defendants allegedly trafficked high volumes of fentanyl and other deadly drugs into our community and then laundered the illicit proceeds of their activities as directed by a Mexico-based drug trafficker, including more than $1 million during a mere two-month period,” said Acting U.S. Attorney Richard S. Moultrie Jr. for the Northern District of Georgia. “Although these individuals took great measures to conceal their alleged criminal conduct, a determined and coordinated effort by our federal and local law enforcement partners helped to secure the federal charges in this case.”

“The deadly impact of fentanyl on our communities is devastating,” said Acting Special Agent in Charge Jae W. Chung of the DEA’s Atlanta Division. “These arrests should be a clear message to the traffickers that keeping our communities safe is our highest priority.”

“Using our expertise in financial investigations, IRS Criminal Investigation is following the money, despite attempts by criminals to cover their tracks,” said Special Agent in Charge Demetrius Hardeman of IRS-CI’s Atlanta Field Office. “IRS Criminal Investigation special agents in partnerships with the U.S. Attorney’s Office and other law enforcement agencies, will continue our work investigating and holding accountable those responsible for bringing dangerous drugs into our communities.”

According to Acting U.S. Attorney Moultrie for the Northern District of Georgia, the indictment, and other information presented in court: In September 2024, the DEA uncovered a scheme involving drug traffickers delivering bulk currency from drug sales to a middleman in Norcross. The middleman then allegedly delivered the drug proceeds to defendants Sandra Beatriz Hernandez Chilel (Chilel) and her daughter Karina Beatriz Perez Hernandez (Perez), who then laundered the proceeds as directed by a Mexico-based drug trafficker. Chilel and Perez allegedly operated a money service business (MSB) in Norcross called “La Pulga Esperenza.”

Between September and November 2024, DEA saw several traffickers deliver hundreds of thousands of dollars of suspected drug proceeds to the middleman in Norcross, who then transferred the cash to Chilel and Perez. Agents with IRS-CI analyzed the MSB’s transactions and determined that the cash was wired to Mexico but was transferred in small increments so as not to raise suspicion by federal regulators. During a period of approximately two months, this ring of individuals allegedly laundered over $1 million in drug proceeds smuggled to Mexico.

During the investigation, the DEA identified several alleged traffickers who transported the drug proceeds to Norcross, including defendants David Miranda Vinalay, Jerome Lewis, and Irving Joel Hernandez. DEA identified one of the primary traffickers as being a member or associate of the CJNG. Additionally, as alleged in the indictment, some of the traffickers also possessed methamphetamine and fentanyl that they intended to distribute on behalf of the drug trafficking ring.

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

This case is being investigated by the DEA and IRS-CI. Valuable assistance was also provided by the Georgia State Patrol, Dekalb County, Georgia, Police Department, Gwinnett County, Georgia, Police Department, and Gwinnett County Sheriff’s Office.

Assistant U.S. Attorneys Bethany L. Rupert and Dwayne A. Brown Jr. for the Northern District of Georgia are prosecuting the case.

This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Justice Department to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

This effort is part of an OCDETF operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.  Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

An indictment is merely an accusation. All defendants are presumed innocent unless and until proven guilty.

ATLANTA – On April 1, 2025, seven individuals in Georgia and Mexico were indicted by a federal grand jury seated in the Northern District of Georgia related to a drug trafficking and money laundering ring tied to a Mexico-based trafficker. Five of these defendants, all of Norcross, Georgia – Sandra Beatriz Hernandez Chilel, age 49, Karina Beatriz Perez Hernandez, age 22, David Miranda Vinalay, age 39, Jerome Lewis, age 47, and Irving Joel Hernandez, age 34 – were arrested earlier today, on April 15, 2025, in a coordinated effort by the Drug Enforcement Administration, Internal Revenue Service, Criminal Investigation, and local law enforcement. The defendants were arraigned before a United States Magistrate Judge following their arrests. 

“Thanks to the great investigative work of our federal partners and local law enforcement, five individuals working on behalf of the violent Cartel de Jalisco Nueva Generación (CJNG) have been taken off our streets,” said Attorney General Pamela Bondi. “We will not allow these criminal enterprises to continue profiting off of the death and destruction of American lives.”

“The defendants allegedly trafficked high volumes of fentanyl and other deadly drugs into our community and then laundered the illicit proceeds of their activities as directed by a Mexico-based drug trafficker, including more than $1 million during a mere two-month period,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “Although these individuals took great measures to conceal their alleged criminal conduct, a determined and coordinated effort by our federal and local law enforcement partners helped to secure the federal charges in this case.”

“The deadly impact of fentanyl on our communities is devastating,” said Jae W. Chung, Acting Special Agent in Charge of the DEA Atlanta Division. “These arrests should be a clear message to the traffickers that keeping our communities safe is our highest priority.”

“Using our expertise in financial investigations, IRS Criminal Investigation is following the money, despite attempts by criminals to cover their tracks,” said Special Agent in Charge Demetrius Hardeman, IRS Criminal Investigation, Atlanta Field Office. “IRS Criminal Investigation special agents in partnerships with the U.S. Attorney’s Office and other law enforcement agencies, will continue our work investigating and holding accountable those responsible for bringing dangerous drugs into our communities.”

According to Acting U.S. Attorney Moultrie, the indictment, and other information presented in court: In September 2024, the Drug Enforcement Administration (DEA) uncovered a scheme involving drug traffickers delivering bulk currency from drug sales to a middleman in Norcross. The middleman then allegedly delivered the drug proceeds to defendants Sandra Beatriz Hernandez Chilel (“Chilel”) and her daughter Karina Beatriz Perez Hernandez (“Perez”), who then laundered the proceeds as directed by a Mexico-based drug trafficker. Chilel and Perez allegedly operated a money service business (“MSB”) in Norcross called “La Pulga Esperenza.”

Between September and November 2024, DEA saw several traffickers deliver hundreds of thousands of dollars of suspected drug proceeds to the middleman in Norcross, who then transferred the cash to Chilel and Perez. Agents with the Internal Revenue Service, Criminal Investigation (“IRS-CI”) analyzed the MSB’s transactions and determined that the cash was wired to Mexico but was transferred in small increments so as not to raise suspicion by federal regulators. During a period of approximately two months, this ring of individuals allegedly laundered over $1 million in drug proceeds smuggled to Mexico.

During the investigation, the DEA identified several alleged traffickers who transported the drug proceeds to Norcross, including defendants David Miranda Vinalay, Jerome Lewis, and Irving Joel Hernandez. DEA identified one of the primary traffickers as being a member and/or associate of the Jalisco New Generation Cartel (“CJNG”). Additionally, as alleged in the indictment, some of the traffickers also possessed methamphetamine and fentanyl that they intended to distribute on behalf of the drug trafficking ring.

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

This case is being investigated by the Drug Enforcement Administration and Internal Revenue Service, Criminal Investigation. Valuable assistance was also provided by the Georgia State Patrol, Dekalb County, Georgia, Police Department, Gwinnett County, Georgia, Police Department, and Gwinnett County Sheriff’s Office.

Assistant United States Attorneys Bethany L. Rupert and Dwayne A. Brown, Jr. are prosecuting the case.

This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation.  OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.  Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6280. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

Siblings Johnny Hurtado Olascoaga — also known as El Pez, Pescado, and Mojarra — and Jose Alfredo Hurtado Olascoaga — also known as El Fresa, El Feyo, and La Fruta — both of Guerrero, Mexico, and co-leaders of the La Nueva Familia Michoacana (LNFM) drug cartel, were charged by a federal grand jury seated in the Northern District of Georgia with conspiracy to manufacture and distribute heroin, cocaine, methamphetamine, and fentanyl knowing those controlled substances would be imported into the United States, conspiracy to import those controlled substances into the United States, and conspiracy to possess with the intent to distribute those controlled substances.

The indictments were returned in September 2024 and recently unsealed. Prior to his indictment, Johnny Hurtado Olascoaga was designated as a Consolidated Priority Target (CPOT) by the Organized Crime Drug Enforcement Task Force (OCDETF) program. Both Hurtado Olascoaga brothers are fugitives believed to be residing in Mexico. In addition, today the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced new sanctions against Johnny and Jose Alfredo Hurtado Olascoaga and their siblings, LNFM members Ubaldo Hurtado Olascoaga and Adita Hurtado Olascoaga. On Feb. 20, the U.S. Department of State also announced the designation of LNFM as a Foreign Terrorist Organization (FTO) and Specially Designated Global Terrorist (SDGT). Additionally, the Department of State announced a Narcotics Rewards Program offer of up to $5 million and $3 million, respectively, for information leading to the arrests or convictions of Johnny and Jose Alfredo Hurtado Olascoaga.

Franco Tabares Martinez, 51, of Guerrero, Mexico, a high-ranking member of LNFM was charged by a federal grand jury seated in the Northern District of Georgia with conspiracy to possess methamphetamine with the intent to distribute and related substantive counts of drug trafficking. The indictment was unsealed against Franco Tabares Martinez on July 7, 2023, after which he was sanctioned by OFAC. On June 20, 2024, his brother Uriel Tabares-Martinez was also sanctioned by OFAC. Another brother, Pablo Tabares Martinez, pleaded guilty on Jan. 13 to conspiracy to possess methamphetamine with intent to distribute. Their sister, Guadalupe Tabares Martinez — also known as Yosel Medrano Hernandez and Lupe — of Mableton, Georgia, has now been charged by a federal grand jury seated in the Northern District of Georgia with conspiracy to commit international money laundering, conspiracy to operate an unlicensed money services business, and related substantive counts. The indictment was returned on April 8 and recently unsealed.                 

“Today’s indictments and OFAC sanctions against high-ranking LNFM cartel members sends a clear message: if you contribute to the death of Americans by peddling poison into our communities, we will work relentlessly to find you and bring you to justice,” said Attorney General Pamela Bondi.

“These cartel members are allegedly responsible for importing massive amounts of cocaine, methamphetamine, heroin and fentanyl from Mexico to the Atlanta area and across the United States, and then wiring hundreds of thousands of dollars in proceeds from distributing those drugs back to Mexico,” said Acting U.S. Attorney Richard S. Moultrie Jr. for the Northern District of Georgia. “These federal indictments, in conjunction with the imposition of OFAC sanctions, send a strong message that we will tirelessly investigate, prosecute, and defund individuals around the globe who choose to import deadly drugs into, and risk the lives of the members of, our communities.”

“Today’s action underscores our commitment to intensify the pressure on violent drug cartels like LNFM, who continue to traffic deadly fentanyl and other drugs, smuggle illegal aliens over our Southwest border, and attack law enforcement,” said Secretary of the Treasury Scott Bessent. “The Trump administration will continue to use all available tools to target the cartels and other violent organizations that attempt to exploit our communities and harm Americans.”

“President Trump has promised to crack down on the flow of deadly drugs into our country,” said Senior Bureau Official F. Cartwright Weiland of the Department of State’s Bureau of International Narcotics and Law Enforcement Affairs (INL). “And today, working with the DEA and Homeland Security Investigations, the Department of State is delivering on that promise by offering rewards totaling up to $8 million for information leading to the arrest and/or conviction of the Hurtado brothers.”

“Cases like this exemplify the value of partnerships,” said Acting Special Agent in Charge Jae W. Chung of the Drug Enforcement Administration (DEA) Atlanta Division. “The volume of dangerous drugs and violence impacts our communities beyond comprehension. This investigation and subsequent indictments demonstrate DEA’s commitment to protecting our community by destroying these drug trafficking organizations.”

“The indictment of senior leaders of this brutal Mexican cartel and subsequent OFAC sanctions makes one thing clear, we are coming after these criminal networks and utilizing every weapon in our arsenal,” said Special Agent in Charge Steven N. Schrank of Homeland Security Investigations (HSI) in Georgia and Alabama. “Through aggressive interagency coordination, HSI and our law enforcement partners are not only seizing their drugs and arresting their members, but we are also cutting off their money, dismantling their infrastructure, and bringing their leaders to justice. This operation underscores our unwavering commitment to protecting our communities and dismantling the criminal enterprises that profit from violence and addiction.”

According to Acting U.S. Attorney Moultrie for the Northern District of Georgia, the indictments, and other information presented in court: In 2021, agents of the DEA and HSI began an investigation of LNFM cartel members importing methamphetamine, heroin, cocaine, and fentanyl into the United States, including into the Northern District of Georgia. As part of the investigation, agents identified Franco Tabares Martinez as a then-high-ranking member of the LNFM cartel who allegedly distributed multi-kilogram quantities of methamphetamine in the metro Atlanta area.

In addition, agents identified Franco Tabares Martinez’s sister, Guadalupe Tabares Martinez, as an Atlanta-based money launderer allegedly helping her brother and other drug traffickers by picking up bulk currency and then using her money service business, Noyola Multiservice, to transmit those drug proceeds to drug trafficking associates in Mexico. Through the investigation, agents also identified Johnny Hurtado Olascoaga and Jose Alfredo Hurtado Olascoaga as the cartel’s co-founders and kingpins, who conspired with cartel members in Mexico and throughout the United States to import heroin, methamphetamine, cocaine, and fentanyl across the U.S.-Mexico border for distribution in various cities and states, including Atlanta.

This case is being investigated by the DEA and HSI.

Assistant U.S. Attorneys Laurel Milam and Bethany Rupert for the Northern District of Georgia are prosecuting the case against the Hurtado Olascoaga brothers, Franco Tabares Martinez and Guadalupe Tabares Martinez. Assistant U.S. Attorney Michael Morrison for the Middle District of Georgia provided valuable contributions to the investigation of Guadalupe Tabares Martinez.

This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Justice Department to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

This prosecution is part of an OCDETF Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi¬ jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.

The specific mission of the David G. Wilhelm Atlanta OCDETF Strike Force (the Strike Force) is to degrade and dismantle major drug trafficking and money laundering organizations (DTMLOs) in the Atlanta metropolitan area and the Northern District of Georgia. To accomplish this mission, the Strike Force will target these organizations’ leaders, focusing on targets designated as Consolidated Priority Organization Targets (CPOTs), Regional Priority Organization Targets (RPOTs), and their associates.  The Atlanta Strike Force is comprised of agents and officers from ATF, DEA, FBI, HSI, USMS, USPIS, and IRS; as well as numerous state and local agencies, and the prosecution is being led by the Office of the U.S. Attorney for the Northern District of Georgia.

An indictment is merely an accusation. All defendants are presumed innocent unless and until proven guilty.

ATLANTA – Siblings Johnny Hurtado Olascoaga, also known as “El Pez,” “Pescado,” and “Mojarra,” 52, and Jose Alfredo Hurtado Olascoaga, also known as “El Fresa,” “El Feyo,” and “La Fruta,” 41, both of Guerrero, Mexico, and co-leaders of the La Nueva Familia Michoacana (LNFM) drug cartel, were charged by a federal grand jury seated in the Northern District of Georgia with conspiracy to manufacture and distribute heroin, cocaine, methamphetamine, and fentanyl knowing those controlled substances would be imported into the United States, conspiracy to import those controlled substances into the United States, and conspiracy to possess with the intent to distribute those controlled substances. 

The indictments were returned in September 2024 and recently unsealed. Prior to his indictment, Johnny Hurtado Olascoaga was designated as a Consolidated Priority Target (“CPOT”) by the Organized Crime Drug Enforcement Task Force (“OCDETF”) program. Both Hurtado Olascoaga brothers are fugitives believed to be residing in Mexico. In addition, today the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) announced new sanctions against Johnny and Jose Alfredo Hurtado Olascoaga and their siblings, LNFM members Ubaldo Hurtado Olascoaga and Adita Hurtado Olascoaga. On February 20, 2025, the U.S. Department of State also announced the designation of LNFM as a Foreign Terrorist Organization (“FTO”) and Specially Designated Global Terrorist (“SDGT”). Additionally, the Department of State announced a Narcotics Rewards Program offer of up to $5 million and $3 million, respectively, for information leading to the arrests and/or convictions of Johnny and Jose Alfredo Hurtado Olascoaga.

Franco Tabares Martinez, 51, of Guerrero, Mexico, a high-ranking member of LNFM was charged by a federal grand jury seated in the Northern District of Georgia with conspiracy to possess methamphetamine with the intent to distribute and related substantive counts of drug trafficking. The indictment was unsealed against Franco Tabares Martinez on July 7, 2023, after which he was sanctioned by OFAC. On June 20, 2024, his brother Uriel Tabares-Martinez was also sanctioned by OFAC. Another brother, Pablo Tabares Martinez, pleaded guilty on January 13, 2025, to conspiracy to possess methamphetamine with intent to distribute. Their sister, Guadalupe Tabares Martinez, also known as “Yosel Medrano Hernandez” and “Lupe,” 48, of Mableton, Georgia, has now been charged by a federal grand jury seated in the Northern District of Georgia with conspiracy to commit international money laundering, conspiracy to operate an unlicensed money services business, and related substantive counts. The indictment was returned on April 8, 2025, and recently unsealed.                                                                                                                                       

“Today’s indictments and OFAC sanctions against high-ranking LNFM cartel members sends a clear message: if you contribute to the death of Americans by peddling poison into our communities, we will work relentlessly to find you and bring you to justice,” said Attorney General Pamela Bondi.

“These cartel members are allegedly responsible for importing massive amounts of cocaine, methamphetamine, heroin and fentanyl from Mexico to the Atlanta area and across the United States, and then wiring hundreds of thousands of dollars in proceeds from distributing those drugs back to Mexico,” said Acting U.S. Attorney Richard S. Moultrie, Jr.  “These federal indictments, in conjunction with the imposition of OFAC sanctions, send a strong message that we will tirelessly investigate, prosecute, and defund individuals around the globe who choose to import deadly drugs into, and risk the lives of the members of, our communities.”

“Today’s action underscores our commitment to intensify the pressure on violent drug cartels like LNFM, who continue to traffic deadly fentanyl and other drugs, smuggle illegal aliens over our Southwest border, and attack law enforcement,” said Secretary of the Treasury Scott Bessent.  “The Trump administration will continue to use all available tools to target the cartels and other violent organizations that attempt to exploit our communities and harm Americans.”

“President Trump has promised to crack down on the flow of deadly drugs into our country,” said Senior Bureau Official F. Cartwright Weiland of the Department of State’s Bureau of International Narcotics and Law Enforcement Affairs (INL). “And today, working with the DEA and Homeland Security Investigations, the Department of State is delivering on that promise by offering rewards totaling up to $8 million for information leading to the arrest and/or conviction of the Hurtado brothers.”

“Cases like this exemplify the value of partnerships,” said Jae W. Chung, Acting Special Agent in Charge of the DEA Atlanta Division. “The volume of dangerous drugs and violence impacts our communities beyond comprehension. This investigation and subsequent indictments demonstrate DEA’s commitment to protecting our community by destroying these drug trafficking organizations.”

“The indictment of senior leaders of this brutal Mexican cartel and subsequent OFAC sanctions makes one thing clear, we are coming after these criminal networks and utilizing every weapon in our arsenal,” said Steven N. Schrank, Special Agent in Charge of Homeland Security Investigations (HSI) in Georgia and Alabama. “Through aggressive interagency coordination, HSI and our law enforcement partners are not only seizing their drugs and arresting their members, but we are also cutting off their money, dismantling their infrastructure, and bringing their leaders to justice. This operation underscores our unwavering commitment to protecting our communities and dismantling the criminal enterprises that profit from violence and addiction.”

According to Acting U.S. Attorney Moultrie, the indictments, and other information presented in court: In 2021, agents of the Drug Enforcement Administration (“DEA”) and the Department of Homeland Security-Homeland Security Investigations (“HSI”) began an investigation of LNFM cartel members importing methamphetamine, heroin, cocaine, and fentanyl into the United States, including into the Northern District of Georgia.  As part of the investigation, agents identified Franco Tabares Martinez as a then-high-ranking member of the LNFM cartel who allegedly distributed multi-kilogram quantities of methamphetamine in the metro Atlanta area.

In addition, agents identified Franco Tabares Martinez’s sister, Guadalupe Tabares Martinez, as an Atlanta-based money laundering allegedly helping her brother and other drug traffickers by picking up bulk currency and then using her money service business, Noyola Multiservice, to transmit those drug proceeds to drug trafficking associates in Mexico. Through the investigation, agents also identified Johnny Hurtado Olascoaga and Jose Alfredo Hurtado Olascoaga as the cartel’s co-founders and kingpins, who conspired with cartel members in Mexico and throughout the United States to import heroin, methamphetamine, cocaine, and fentanyl across the U.S./Mexico border for distribution in various cities and states, including Atlanta, Georgia.

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 the defendants’ guilt beyond a reasonable doubt at trial.

This case is being investigated by the Drug Enforcement Administration and Department of Homeland Security-Homeland Security Investigations.

Assistant U.S. Attorneys Laurel Milam and Bethany Rupert are prosecuting the case againstthe Hurtado Olascoaga brothers, Franco Tabares Martinez and Guadalupe Tabares Martinez.  Assistant U.S. Attorney Michael Morrison with the U.S. Attorney’s Office for the Middle District of Georgia provided valuable contributions to the investigation of Guadalupe Tabares Martinez.

This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi¬ jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.

The specific mission of the David G. Wilhelm Atlanta OCDETF Strike Force (the Strike Force) is to degrade and dismantle major drug trafficking and money laundering organizations (DTMLOs) in the Atlanta metropolitan area and the Northern District of Georgia. To accomplish this mission, the Strike Force will target these organizations’ leaders, focusing on targets designated as Consolidated Priority Organization Targets (CPOTs), Regional Priority Organization Targets (RPOTs), and their associates.  The Atlanta Strike Force is comprised of agents and officers from ATF, DEA, FBI, HSI, USMS, USPIS, and IRS; as well as numerous state and local agencies, and the prosecution is being led by the Office of the United States Attorney for the Northern District of Georgia.

The Office of the U.S. Attorney for the Northern District of Georgia recommends that parents and children learn about the dangers of drugs at the following websites: www.justthinktwice.gov; www.operationprevention.com/; and www.dea.gov/onepill.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6280.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA – Aliakbar Mohammad Amin has been arrested and charged pursuant to a criminal complaint with transmitting interstate threats to injure Director of National Intelligence (DNI) Tulsi Gabbard and her family. 

“Threatening to harm public officials is a criminal act that cannot be excused as political discourse,” said Acting U.S. Attorney Richard S. Moultrie, Jr.  “Our Office, in coordination with our law enforcement partners, will vigorously prosecute individuals who commit these acts of violence.”

“The FBI sees all threatening communications as a serious federal offense. We will employ every investigative tool and resource available to identify those responsible and ensure they are prosecuted to the fullest extent of the law,” said Paul Brown, Special Agent in Charge of FBI Atlanta. “Let this arrest serve as a clear warning: if you engage in this kind of criminal behavior, you will be caught and you will go to prison.”

According to Acting U.S. Attorney Moultrie, the complaint, and other information presented in court: Between March 29 and April 1, 2025, Amin allegedly sent text messages that included threats against DNI Gabbard and her husband, including the following statements: 

• “You and your family are going to die soon” and “I will personally do the job if necessary.”
• “Death to America means death to America literally, Tulsi is living on borrowed time.
• “The home you two own . . . is a legitimate target and will be hit at a time and place of our choosing.”
• “Prepare to die, you, Tulsi, and everyone you hold dear. America will burn.”

During the investigation, federal agents also discovered similar threats allegedly made by Amin in social media posts, including an image depicting a firearm pointed at a photograph of DNI Gabbard,  and a second image of a firearm pointed at a photograph of DNI Gabbard and her husband. Federal agents later recovered a firearm while executing a warrant to search Amin’s home.

Aliakbar Mohammad Amin, 24, of Lilburn, Georgia, was charged on April 11, 2025, via a previously sealed criminal complaint alleging a violation of Title 18, United States Code, Section 875(c). He was ordered detained pending trial by a U.S. Magistrate Judge after making his initial appearance in federal court.

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

This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6280.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA – Five individuals have been charged in the Northern District of Georgia with firearms-related offenses during a multi-agency immigration enforcement operation in metro-Atlanta during the past week. The operations involved coordinated investigations led by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and Enforcement and Removal Operations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and Federal Bureau of Investigation, with valuable support from several local law enforcement partners. In addition to the individuals charged federally, law enforcement seized more than a dozen firearms and hundreds of rounds of ammunition in connection with the operations.

“Our office is proud to support our law enforcement partners in this effort and other enforcement initiatives to protect our communities and safeguard our national security,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “This initiative sends a strong message to those engaged in criminal activity, whether regarding immigration-related or firearms offenses, that the ongoing and determined coordinated efforts of our federal and local law enforcement partners will achieve measurable results in making our communities safer.”

“The successful enforcement actions taken during this multi-agency operation underscore HSI’s unwavering commitment to upholding immigration laws and targeting illegal aliens allegedly possessing and trafficking in firearms,” said Steven N. Schrank, special agent in charge of HSI Atlanta, which covers Georgia and Alabama. “By leveraging our partnerships and resources, we are identifying and apprehending those who exploit our immigration system to engage in criminal activities that threaten public safety and national security.”

“ATF along with our federal law enforcement partners will utilize all resources to investigate firearms trafficking by transnational criminal organizations and cartels,” said Special Agent in Charge Benjamin Gibbons. “The success of these investigative efforts could not be accomplished without cohesive partnerships, which keep our communities safe.”

“The DEA, along with our law enforcement partners, are sending a clear message to the Mexican drug cartels and their criminal associates, that keeping our communities safe is our highest priority,” said Jae W. Chung, Acting Special Agent in Charge of the DEA Atlanta Division. 

“FBI Atlanta is dedicated to supporting our federal partners in achieving our mutual objective of ensuring the safety of our communities,” said Paul Brown, Special Agent in Charge of FBI Atlanta. “This case clearly illustrates the success that can be achieved when federal agencies unite their resources and expertise to combat violent criminals."

According to Acting U.S. Attorney Moultrie, the charges, and other information presented in court: From March 24 to April 2, 2025, federal law enforcement agencies conducted a series of enforcement operations targeting individuals allegedly committing firearms and other violations, including those illegally present in the United States.  During the operation, law enforcement seized 13 firearms and hundreds of rounds of ammunition.  Significantly, resulting investigations revealed that many of the firearms were bound for Mexico.

The following defendants have been charged in connection with the operations:

• Lucio Hernandez Mora, 45, of Riverdale, GA, was charged in a Criminal Complaint with possession of a firearm by an alien unlawfully present in the United States.  On April 1, 2025, special agents with the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Department of Homeland Security, Enforcement and Removal Operations, executed a search warrant on a residence in Riverdale, Georgia and encountered Hernandez Mora, an illegal alien.  During a search of the residence, agents located two firearms, allegedly belonging to Hernandez Mora.
• Cameron Vick, 22, of Atlanta, GA was indicted by a federal grand jury on nine counts of making a false statement to a firearms dealer in connection with the acquisition of firearms. Vick’s purchases included two belt-fed M249S rifles, believed to be destined for Mexico.  He was arrested on March 27, 2025.
• Bernice Macias Montes, 31, of Atlanta, GA, was charged in a Criminal Complaint with making a false statement to a firearms dealer in connection with the acquisition of firearms.  ATF agents seized five firearms during a search of her residence on March 27, 2025.
• Teresa Gonzales-Hoppo, 56, of Lithia Springs, GA, was charged in a Criminal Complaint with possession of a firearm by an alien unlawfully present in the United States.  On March 27, 2025, ATF agents executed a search warrant on Gonzales-Hoppo’s residence and located a firearm, allegedly belonging to Gonzales-Hoppo.    
• Carlos Sambrano, 28, of Rex, GA, was charged in a Criminal Complaint with unlawful possession of a firearm by a convicted felon. ATF agents located seven firearms in his residence during the execution of a March 27, 2025, search warrant. 

Hernandez Mora made his initial appearance before U.S. Magistrate Judge Linda T. Walker on April 1, 2025.  Gonzales-Hoppo made her initial appearance before U.S. Magistrate Judge John K. Larkins, III on March 28, 2025.  Vick, Macias Montes and Sambrano also made their initial appearances before Judge Larkins on March 27, 2025. 

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

These cases are being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and Enforcement and Removal Operations, and Federal Bureau of Investigation, with valuable assistance provided by U.S. Customs and Border Protection, U.S. Secret Service, Georgia State Patrol, Sandy Springs Police Department, Doraville Police Department, Fayette County Sheriff’s Office, Clayton County Police Department, South Fulton Police Department, Douglas County Sheriff’s Office, Gwinnett County Police Department, Clarkston Police Department and East Point Police Department.

Assistant U.S. Attorneys with the Northern District of Georgia, including those assigned to the Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN), provided valuable support for these operations.

This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

The specific mission of the David G. Wilhelm Atlanta OCDETF Strike Force (Atlanta Strike Force) is to eliminate transnational organized crime syndicates and major drug trafficking and money laundering organizations in the Atlanta metropolitan area and the Northern District of Georgia. To accomplish this mission, the Atlanta Strike Force will target these organizations’ leaders, focusing on targets designated as Consolidated Priority Organization Targets, Regional Priority Organization Targets, and their associates.  The Atlanta Strike Force is comprised of agents and officers from ATF, DEA, FBI, HSI, USMS, USPIS, and IRS, as well as numerous state and local agencies; and the prosecution is being led by the Office of the United States Attorney for the Northern District of Georgia.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6280.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga. 

ATLANTA - Antwuan Brown, 39, of Alpharetta, Ga., made an initial appearance earlier today before United States Magistrate Judge Linda T. Walker on a Criminal Complaint, charging him with possession with the intent to distribute fentanyl.  Brown allegedly possessed for distribution approximately 240,000 fentanyl pills and 4.5 kilograms of fentanyl powder, making this the largest seizure of fentanyl in the district’s history.

“Our federal and local law enforcement partners undoubtedly saved countless lives through their diligent investigation and seizure of this immense quantity of deadly fentanyl,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “Our office will continue to work with our federal, state, and local law enforcement partners to aggressively target alleged fentanyl dealers who seek to poison our communities for profit.” 

“DEA will continue to combat the fentanyl crisis by holding the most dangerous and prolific drug traffickers accountable,” said Jae W. Chung, Acting Special Agent in Charge of the DEA Atlanta Division. “Locking away criminal drug dealers who choose to push poison on our streets will save lives as fentanyl is the number one killer among Americans aged 18-45.”

A representative from the Sandy Springs Police Department said, “The Sandy Springs Police Department is committed to reducing the impact of illegal drugs in our city, especially fentanyl. We work closely with our federal law enforcement partners, such as the DEA/HIDTA to strengthen our efforts. We appreciate the U.S. Attorney's Office in Atlanta for their support and for prosecuting this case.”

According to Acting U.S. Attorney Moultrie, the charges, and other information presented in court: On March 21, 2025, as part of a drug trafficking investigation, federal investigators of the Drug Enforcement Administration’s High Intensity Drug Trafficking Area program, and Sandy Springs, Georgia, Police Department officers, executed search warrants of an apartment and a vehicle located in Sandy Springs.  Investigators found a pill press containing fentanyl powder and two firearms inside the apartment.

Law enforcement officers then encountered Brown who had the key to the vehicle of interest in his pocket.  Officers located the vehicle in the apartment complex’s parking deck, opened it with Brown’s key, and discovered approximately 240,000 fentanyl pills, 4.5 kilograms of fentanyl powder, cocaine, and methamphetamine.  Brown was arrested at the scene. 

Members of the public are reminded that the Criminal Complaint 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 Drug Enforcement Administration and the Sandy Springs Police Department.

Assistant United States Attorney Matthew R. LaGrone is prosecuting the case.

This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

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.gov.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6280.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Joshua Timothy Rex has pleaded guilty to possession of two firearms by a convicted felon after law enforcement officers intercepted him on his way to confront a student on the campus of Reinhardt University.

“Rex is a repeat violent offender who placed the citizens of Cherokee County and the Reinhardt University community at serious risk by bringing guns to campus in anticipation of an encounter with a student,” said Acting U.S. Attorney Richard S. Moultrie, Jr.  “We are relieved that local law enforcement intervened before Rex harmed anyone, and we are grateful for the collaborative efforts of our federal and local law enforcement partners who aided this successful prosecution.”

“Rex posed a serious threat to the public,” said Special Agent in Charge Benjamin Gibbons.  “Identifying and apprehending Rex shows that ATF and our law enforcement partners will continue to utilize all resources to protect the community.” 

According to Acting U.S. Attorney Moultrie, Jr., the charges and other information presented in court: Joshua Rex is prohibited by law from possessing firearms due to his record of prior felony drug convictions and a prior conviction of domestic violence.  But in spite of his previous criminal history, on July 20, 2024, he drove to the campus of Reinhardt University armed with two fully loaded firearms and extra magazines of ammunition.  Law enforcement was alerted to Rex’s apparent violent intentions when they received a 911 call stating that Rex was en route to the school to confront and potentially harm a student.

Officers of the Cherokee County, Georgia, Sheriff’s Office and Reinhardt University Department of Public Safety prevented a potentially life-threatening incident when they intercepted Rex just as he entered the campus and arrested him for driving under the influence of alcohol and bringing firearms to the campus.  Rex later admitted to federal agents that he had armed himself in anticipation of an encounter with a Reinhardt University student.

Sentencing is scheduled for July 9, 2025, at 2:00 p.m. before Senior United States District Judge Thomas W. Thrash, Jr. 

This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with valuable assistance provided by the Cherokee County Sheriff’s Office and Reinhardt University Department of Public Safety.

Assistant United States Attorney Benjamin Wylly is prosecuting the case.

This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

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 U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ROME, Ga. - Deaja Simone Clemons has been sentenced for conspiracy to possess with the intent to distribute fentanyl.                                                                                                                                        

“Clemons sold thousands of fentanyl pills at a time that the illegal distribution and use of this drug was continuing to ravage communities within and outside our district,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “Our Office is grateful for the collaboration among our federal, state, and local law enforcement partners which makes it possible to combat the threat of drug traffickers like Clemons.”

“Illicit drugs like fentanyl has destroyed countless lives,”  said Jae W. Chung, the Acting Special Agent in Charge of the DEA Atlanta Division. “Keeping our communities safe is our highest priority.”

According to Acting U.S. Attorney Moultrie, the charges, and other information presented in court: In February 2024, the Drug Enforcement Administration’s (DEA) Rome, Georgia, Field Office received information that Deaja Clemons was dealing fentanyl in the Rome area. A subsequent investigation revealed that in the month of February, Clemons sold 121 blue pills marked with M30 (counterfeit pills made to resemble oxycodone 30 mg pills) that contained fentanyl. Clemons had sold 60 of those fentanyl pills in Rome, and 61 in Cedartown, Georgia. 

In early April 2024, DEA special agents and Polk County police officers followed Clemons from Rome to Polk County. Polk County officers stopped Clemons en route back to Rome and, during a search of her car, recovered 124 blue, counterfeit “M30” pills containing fentanyl and $3,922 in cash. Clemons was arrested and, during the investigation that followed, DEA special agents discovered that Clemons had been selling about 300 fentanyl pills a week for approximately three months.

United States District Judge William M. Ray, II, sentenced Deaja Simone Clemons, 29, of Rome, Ga., to 63 months in prison, followed by five years of supervised release. Clemons was convicted of the charges on December 13, 2024, after she pleaded guilty.          

This case was investigated by the Drug Enforcement Administration, the Atlanta-Carolinas High Intensity Drug Trafficking Area (AC-HIDTA), and the Polk County Police Department.

Assistant United States Attorneys Thomas M. Forsyth, III and Calvin A. Leipold, III prosecuted the case.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strategic Initiative focused on combatting the fentanyl crisis in northwest Georgia. OCDETF identifies and eliminates the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

Anyone with information about drug sales/trafficking in their area can report it to the GBI at1-800-597-TIPS (8477) or DEA’s Atlanta Division Office at (404) 893-7000. Online tips can be submitted at https://www.dea.gov/submit-tip.

The Office of the U.S. Attorney for the Northern District of Georgia encourages parents and children to learn about the dangers of fentanyl and other drugs at the following websites: www.justthinktwice.gov, www.GetSmartAboutDrugs.com, www.operationprevention.com/, www.CampusDrugPrevention.gov, and www.dea.gov/onepill.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6280. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

NEWNAN, Ga. - Timmy S. Stephens has been sentenced for stealing money intended as disability benefits from the Social Security Administration.  For approximately 20 years, Stephens claimed that he was disabled in order to receive benefits all while he worked at a local funeral home.

 “Stephens perpetrated a two-decades long fraud on the Social Security Administration,” said Acting U.S. Attorney Richard S. Moultrie, Jr.  “The disability program is a wage replacement program for those members of our society who cannot work due to a physical or mental health condition. Stealing benefits from the Social Security trust fund betrays the Social Security Administration and the people the program is designed to help.” 

According to Acting U.S. Attorney Moultrie, Jr., the charges and other information presented in court: The evidence uncovered during the investigation showed that Stephens began receiving disability benefits due to a cardiac condition in or about August 2002.  At that time and regularly thereafter, the Social Security Administration (SSA) informed him that if his condition improved or if he returned to work, he must report any change in his condition or work activity to the SSA.  Despite notice of these reporting requirements, Stephens began working at a local funeral home in January 2003 and did not report the work activity to SSA. Instead, to conceal his work activity from SSA, Stephens arranged with the funeral home for his earnings to be reported to the Internal Revenue Service using a relative’s social security number.  

SSA later learned of this arrangement and about Stephen’s work activity. Stephens then submitted a false work activity report claiming that he had not worked since 2001.  In response, federal special agents interviewed Stephens about his work activity. During the interview, he lied to the agents and also produced falsified time sheets to the funeral homeowner, directing her to give the false records to law enforcement.  In total, Stephens received more than $360,000 in disability benefits when he was in fact able to work and not disabled.     

Timmy Stephens has been sentenced to nine months in prison to be followed by three years of supervised release, and ordered to pay a fine of $5,500.00 and restitution in the amount of $126,560.50.  Stephens was convicted on these charges on October 17, 2024, after he pleaded guilty.

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

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

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6280.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ROME, Ga. - Robert Burkich, M.D., of Chattanooga, Tennessee and Preventive Medicine Anti-Aging & Chelation, Inc., his practice in Ringgold, Georgia, have settled claims under the False Claims Act to resolve allegations that they knowingly submitted false claims to Medicare for medically unnecessary chelation therapy.

“By falsely certifying that services provided to patients are medically necessary, healthcare providers deplete the resources available to Medicare beneficiaries who are actually in need of care,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “In coordination with our law enforcement partners, our Office will continue to identify and pursue individuals who commit acts of waste, fraud, and abuse against the Medicare program.”

“Providers who knowingly submit unreasonable and medically unnecessary claims prioritize personal profits over their duty to patients and federal health care programs,” said Kelly J. Blackmon, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG, in partnership with our law enforcement allies, remains committed to investigating fraudulent billing practices that undermine the integrity of federal health care programs and jeopardize the well-being of beneficiaries.”

“We must assure patients and taxpayers that the care provided by federally- funded healthcare programs is dictated by clinical needs, not fiscal greed,” said Paul Brown, Special Agent in Charge of FBI Atlanta. “The FBI and our partners are committed to combining resources to investigate and hold providers accountable for billing the government only for necessary services.”

The United States alleges that between September 2009 and January 2017, Dr. Burkich billed Medicare for administering the chelation drug edetate calcium disodium (EDTA) to Medicare beneficiaries who were not suffering from lead poisoning. EDTA is a rarely used drug that is indicated for use only in individuals suffering from lead poisoning and lead encephalopathy.

Medicare has several long-standing rules preventing reimbursement for EDTA when not used for cases of lead poisoning or lead encephalopathy. The United States alleges that Dr. Burkich falsely represented to Medicare that his patients suffered from lead poisoning or other heavy-metal-related diseases to avoid Medicare’s restrictions and obtain reimbursement.

Based on these allegations, the U.S. Attorney’s Office for the Northern District of Georgia filed suit against Dr. Burkich and his practice, accusing them of violating the False Claims Act, 31 U.S.C. 3729, et seq. That statute prohibits, among other conduct, the knowing submission of false claims for payment to government agencies. The case is titled United States v. Burkich et al., No. 1:19-cv-03510-MLB (N.D. Ga.).

The settlement was reached under the Department of Justice’s ability-to-pay guidelines, which can be used to settle cases where defendants lack the financial ability to pay a merits-based settlement. The guidelines require defendants to submit to a rigorous financial analysis to determine their ability to pay a settlement. Per the resolution, Dr. Burkich and his practice will jointly pay $700,000 to the United States to be used as restitution to Medicare.

This matter was litigated by Assistant U.S. Attorney Anthony DeCinque and former Assistant U.S. Attorney Paris Wynn.

The claims resolved by the settlement are allegations only, and there has been no determination of liability.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6280.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA, Ga. – Jana Kanyadan, the former Global Chief Information Officer of Mohawk Industries, Inc. (“Mohawk”), has been sentenced to more than seven years in federal prison for defrauding Mohawk. 

 “Kanyadan held a position of authority as a C-suite executive at Mohawk and abused his fiduciary duty by stealing from the company that trusted him,” said Acting U.S. Attorney Richard S. Moultrie, Jr.  “His sentence is a reasonable one that reflects the seriousness of his criminal conduct.”

“The defendant stole money that should have gone to his employer,” said FBI Atlanta Special Agent in Charge Paul Brown.  “We will continue to investigate and hold accountable anyone who attempts to scam their employer out of funds.”

According to Acting U.S. Attorney Moultrie, the indictment, and other information presented in court: Kanyadan was Mohawk’s Global Chief Information Officer, responsible for Information Technology (“IT”) services and decisions. In 2019, Mohawk began a large, multi-year IT project and outsourced work for the project to IT consulting firms.  Kanyadan secretly organized and controlled a Georgia company, Meta Technology Platforms, LLC (“Meta Tech”), and used his position at Mohawk to retain Meta Tech as a Mohawk vendor and divert Mohawk’s outsourced IT consulting work to Meta Tech.

Between approximately May 7, 2022, and October 2, 2022, Meta Tech submitted invoices to Mohawk totaling approximately $3,016,011.40.  But these invoices did not disclose Kanyadan’s relationship to Meta Tech.  Moreover, the invoices charged Mohawk for services that had not actually been performed and for software that had not actually been provided.  The invoices also charged Mohawk inflated hourly rates that Kanyadan approved on Mohawk’s behalf.  Based on the fraudulent invoices, Mohawk paid Meta Tech approximately $1,857,741.40, in total, with approximately $820,577.40 of that amount arising from fraud.

Jana Kanyadan, 54, of Marietta, Georgia, was sentenced to seven years, six months in prison to be followed by three years of supervised release.  Kanyadan was also ordered to pay a $250,000 fine and $985,166.66 in restitution.  Kanyadan pleaded guilty to one count of wire fraud conspiracy and seven counts of wire fraud on November 1, 2024. 

This case was investigated by the Federal Bureau of Investigation.

Assistant U.S. Attorney Samir Kaushal and former Assistant U.S. Attorney Tal C. Chaiken prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6280.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

An indictment was unsealed yesterday in the Northern District of Georgia charging eight members and associates of the GoodFellas Gang for their alleged roles in a criminal enterprise engaged in attempted murder, assault with a dangerous weapon, and attempted carjacking in and around Atlanta.

According to the indictment, the GoodFellas are a violent gang that heavily recruits members in Atlanta neighborhoods, local jails, and Georgia Department of Corrections facilities. Members engage in violence to enhance the violent reputation of the gang.

As alleged in the indictment, six of the defendants shot and attempted to murder four victims. Additionally, two GoodFellas members and associates allegedly attempted a carjacking and assaulted three victims with a dangerous weapon.

Frank Hubbert, also known as Capo Frank, 38; Montavis Jones, also known as Nigel Woods, Jitt, and Git, 37; Darian Sheppard, also known as Lil D, 27; De’Andre Jackson, also known as Gen, Glock, and Glizzy, 22; Ephram Marshall, also known as Lil E, 24; Tahj Rankine, also known as Biggz, 26; and Leonunte Carson, also known as Lil Tae, 22, are each charged with multiple counts of attempted murder in aid of racketeering and with using a firearm during these crimes.

Hubbert and Ahday Nelson-George, also known as Baby K, 25, are each charged with multiple counts of assault with a dangerous weapon, and attempted carjacking.

Seven of the defendants face a maximum penalty of life in prison; Nelson-George faces a maximum penalty of 75 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Supervisory Official Matthew R. Galeotti, head of the Justice Department’s Criminal Division, Acting U.S. Attorney Richard S. Moultrie Jr. for the Northern District of Georgia, and Special Agent in Charge Paul Brown of the FBI Atlanta Field Office made the announcement.

The FBI is investigating the case with valuable assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Fulton County (Georgia) Sheriff’s Office; Georgia Department of Corrections; and the Atlanta Police Department.

Trial Attorney Sarah J. Rasalam of the Criminal Division’s Violent Crime and Racketeering Section and Assistant U.S. Attorney Lauren Renaud for the Northern District of Georgia are prosecuting the case.

This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to achieve the total elimination of cartels and transnational criminal organizations (TCOs) and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

ATLANTA – Spencer Askew, the founder and former CEO of E-Freight Solutions Worldwide, LLC, a Georgia-based logistics and supply chain company, pleaded guilty to defrauding Vinings Bank in connection with obtaining a $1 million line of credit. Askew also pleaded guilty to making false statements to the United States Department of Veterans Affairs (VA) in June 2020, falsely claiming that he had a relationship with 3M and could supply the VA with KN95-like masks during the COVID-19 pandemic.

“Askew can no longer avoid the consequences of engaging in a fraudulent scheme that resulted in the loss of millions of dollars and of aggravating his criminal conduct by making false statements to law enforcement,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “This prosecution underscores our commitment to work with agency partners to combat all forms of fraud and deception.”

“The defendant in this case was brought to justice for submitting falsified financial information about his companies to financial institutions in order to fraudulently obtain millions of dollars in loans and lines of credit,” said Special Agent in Charge Kyle A. Myles, of the Federal Deposit Insurance Corporation, Office of Inspector General, Atlanta Region. “The FDIC OIG will continue to work diligently with our law enforcement partners to investigate and hold accountable those who commit such fraudulent offenses that threaten the safety and soundness of our Nation’s financial institutions.”

“This guilty plea holds the defendant accountable for his egregious attempt to exploit VA programs and services during a global pandemic,” said Special Agent in Charge David Spilker, Department of Veterans Affairs, Office of Inspector General’s Southeast Field Office. “The VA OIG is dedicated to working with our law enforcement partners to ensure schemes like this are uncovered, investigated, and prosecuted to the fullest extent of the law.”

According to Acting U.S. Attorney Moultrie, the charges, and other information presented in court: Askew started E-Freight Solutions Worldwide, LLC in March 2010. E-Freight Solutions was a logistics and supply company that provided a network for carriers and suppliers of goods to partner and arrange the transportation of goods. In May 2015, Askew founded another entity, Techknowlogi Holdings, LLC d/b/a Teknowlogi. Teknowlogi conducted little or no actual business. Between February and April 2018, Askew executed a scheme to defraud Vinings Bank to obtain financing on behalf of Teknowlogi.

Initially, Askew falsely claimed to Vinings Bank that he was seeking the financing to acquire another logistics company, SaaS Transportation. But ultimately he obtained the financing by submitting materially false information regarding the nature of Teknowlogi’s business and financial condition. Also, several years later, in June 2020, Askew repeatedly lied to a federal special agent about his ability to provide protective personal equipment – KN-95-like masks – to the VA during the COVID-19 pandemic.

In April 2023, a federal grand jury returned a sealed indictment against Askew, charging him with bank fraud and money laundering. In April 2024, Askew was arrested in Arizona after crossing the border from Mexico. Under the terms of his plea agreement, Askew agreed to pay more than $6 million in restitution.

On March 6, 2025, Spencer Askew, 46, of Newnan, Georgia, pleaded guilty to a criminal information charging him with one count of bank fraud and one count of making false statements to a federal agency. His sentencing is scheduled on May 15, 2025, at 10:00 am, before Chief U.S. District Judge Timothy C. Batten, Sr.

This case is being investigated by the Federal Deposit Insurance Corporation, Office of Inspector General, and U.S. Department of Veterans Affairs, Office of Inspector General.

Assistant U.S. Attorney Alex R. Sistla is prosecuting the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6280.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA – Frank Hubbert, Montavis Jones, Darian Sheppard, De’Andre Jackson, Ephram Marshall, Tahj Rankine, Leonunte Carson, and Ahday Nelson-George, alleged members and associates of the street gang GoodFellas, have been indicted on federal charges including Attempted Murder in Aid of Racketeering and Aggravated Assault with a Deadly Weapon in Aid of Racketeering. A federal grand jury seated in the Northern District of Georgia returned the 12-count indictment on March 4, 2025, and it was unsealed earlier today, on March 13, 2025.

“This indictment reflects the collective determination of our Office and law enforcement partners to confront the deadly cycle of gang violence perpetrated by criminal organizations like GoodFellas whose violence and disregard for public safety threaten the security of our communities,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “The alleged gang members and associates charged in this case were allegedly involved in three shootings, including one that injured a child. While the offenses occurred several years ago, these charges are intended to demonstrate that our Office, and our federal, state, and local law enforcement partners, never cease to seek justice on behalf of victims and their family members impacted by crimes of violence.”

“These are not victimless crimes. Communities are hurting and will continue to be impacted as long as violent gangs engage in bloody street wars,” said FBI Atlanta Special Agent in Charge Paul Brown. “The FBI will continue to work with it’s local, state, and federal partners in this fight to identify, disrupt, and dismantle violent criminal organizations.”

“This case shows the importance of law enforcement collaboration successfully targeting violent gang members, said Special Agent in Charge Benjamin Gibbons.  This indictment sends a direct message to criminals that ATF and our law enforcement partners will investigate and protect our citizens.”     

According to Acting U.S. Attorney Moultrie, the indictment, and other information presented in court: The GoodFellas are an Atlanta-based gang that primarily recruits members in Atlanta neighborhoods and jails and prisons within the state of Georgia. The GoodFellas generate money for the gang through, among other criminal activities, drug trafficking, robbery, carjacking, fraud, and firearms trafficking. The gang protects its operation, turf, and reputation through violence and threats of violence, including murder, attempted murder, and obstruction of justice. Defendants Frank Hubbert, Montavis Jones, Darian Sheppard, De’Andre Jackson, Ephram Marshall, Tahj Rankine, Leonunte Carson, and Ahday Nelson-George, are alleged members and associates of the GoodFellas who committed multiple violent crimes in this district, including Attempted Murder in Aid of Racketeering and Aggravated Assault with a Deadly Weapon in Aid of Racketeering.

Specifically, the indictment alleges, among other allegations, that, on or about January 17, 2021, Hubbert and Nelson-George allegedly accosted three individuals who were filming a music video at an Atlanta apartment complex. Hubbert and Nelson-George allegedly demanded the keys to their vehicle at gunpoint which led to an exchange of gunfire.

On or about February 2, 2021, Sheppard, Jackson, Marshall, Rankine, and Carson allegedly fired dozens of rounds at an Atlanta gas station, wounding a patron. The five members were attempting to target members of another gang.

And further, on or about February 10, 2021, Sheppard, Jackson, and Marshall, aided and abetted by Hubbert and Jones, allegedly fired approximately 50 rounds at a woman, severely wounding her and two bystanders, including a child. Hubbert was incarcerated when he allegedly ordered, and aided and abetted, the charged offense.

The following defendants are charged in the case as follows:

• Frank Hubbert, also known as “Capo Frank,” 38, of Atlanta, Georgia, an alleged leader of GoodFellas, is charged with three counts of Attempted Murder in Aid of Racketeering, three counts of Aggravated Assault with a Deadly Weapon in Aid of Racketeering, one count of Attempted Carjacking, and three counts of Discharge of a Firearm in Furtherance of a Crime of Violence.
• Montavis Jones, also known as “Nigel Woods,” “Jitt,” and “Git,” 37, of Union City, Georgia, an alleged leader of GoodFellas, is charged with three counts of Attempted Murder in Aid of Racketeering, and three counts of Discharge of a Firearm in Furtherance of a Crime of Violence.
• Darian Sheppard, also known as “Lil D,” 27, of Atlanta, Georgia, is charged with four counts of Attempted Murder in Aid of Racketeering and four counts of Discharge of a Firearm in Furtherance of a Crime of Violence.
• De’Andre Jackson, also known as “Glock,” “Gen,” and “Glizzy,” 22, of Atlanta, Georgia, is charged with four counts of Attempted Murder in Aid of Racketeering and four counts of Discharge of a Firearm in Furtherance of a Crime of Violence.
• Ephram Marshall, also known as “Lil E,” 24, of Atlanta, Georgia, is charged with four counts of Attempted Murder in Aid of Racketeering and four counts of Discharge of a Firearm in Furtherance of a Crime of Violence.
• Tahj Rankine, also known as “Biggz,” 26, of Atlanta, Georgia, is charged with one count of Attempted Murder in Aid of Racketeering and one count of Discharge of a Firearm in Furtherance of a Crime of Violence.
• Leonunte Carson, also known as “Lil Tae,” 22, of Atlanta, Georgia, is charged with Attempted Murder in Aid of Racketeering and one count of Discharge of a Firearm in Furtherance of a Crime of Violence.
• Ahday Nelson-George, also known as “Baby K,” 25, of Atlanta, Georgia, is charged with three counts of Aggravated Assault with a Deadly Weapon in Aid of Racketeering and one count of Attempted Carjacking.

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

The case is being investigated by the Federal Bureau of Investigation, with valuable assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, Fulton County Sheriff’s Office, Georgia Department of Corrections, and Atlanta Police Department.

Assistant U.S. Attorney Lauren E. Renaud of the Northern District of Georgia and Trial Attorney Sarah J. Rasalam of the Department of Justice’s Violent Crime and Racketeering Section are prosecuting the case. Northern District of Georgia Assistant U.S. Attorney Erin Spritzer and former Assistant U.S. Attorney Lauren Macon also contributed to the prosecution.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6280. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Jordan Pack has been sentenced for two counts of unlawful possession of a firearm and ammunition by a convicted felon and one count of unlawful possession of ammunition by a convicted felon.

“Pack continued to possess firearms and commit violent offenses after being previously convicted of a violent felony,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “This case is another example of the effective law enforcement partnerships in our district that enable the successful prosecutions of dangerous repeat offenders like Pack.”

“This sentence reflects ATF commitment to ensure that those with a history of crime are held accountable”, said Special Agent in Charge Benjamin Gibbons.  Convicted felons possessing firearms presents a danger to the community and ATF along with our law enforcement partners will work hard to remove them from our community.”  

According to Acting U.S. Attorney Moultrie, the charges, and other information presented in court: In October 2008, Jordan Pack was convicted of Armed Robbery (involving a firearm) in the Superior Court of Douglasville, Georgia. He was sentenced to 20 years of imprisonment, with 10 years to serve in custody and the remainder to be served on probation. He was released from prison in April 2018.

On October 22, 2021, officers responding to a motor vehicle collision in Dacula, Georgia, arrested Pack for giving false identifying information to a police officer. A crossbody satchel that Pack was wearing at the time of his arrest contained live .38 caliber ammunition, and officers later learned that, after the accident, Pack had discarded a .38 caliber Taurus revolver under a nearby vehicle. Upon recovering the revolver, officers discovered that the firearm was loaded with the hammer cocked.

Later, on June 17, 2022, Atlanta Police Department (APD) officers responded to the scene of a shooting at a single-family home in Northwest Atlanta. A female resident of the home advised that, following a domestic dispute, Pack had threatened to shoot her. He then retrieved a firearm from his vehicle, fired multiple shots into the air, and fled the scene. Both the victim and her young child were present in the home at that time. Officers recovered five spent .45 caliber shell casings from the driveway of the home.

On August 10, 2022, officers with the APD fugitive unit located Pack at an apartment complex in Southwest Atlanta. Pack was working at the location as an armed security guard (under the alias “William Tate”) and in possession of a Tokarev 12-gauge semi-automatic shotgun. During a search of Pack incident to his arrest, officers recovered a .45 caliber Highpoint semi-automatic pistol which was loaded with 17 rounds of ammunition in a high-capacity magazine, a pair of brass knuckles, a pocketknife, a canister of bear mace, and a large machete. In addition, during a search of Pack’s vehicle, officers seized the Tocarev shotgun, two magazines, 14 rounds of 12-gauge shotgun shells, and several .45 caliber cartridge casings.

On March 6, 2024, Chief District Judge Timothy C. Batten, Sr. sentenced Jordan Pack, also known as “William Tate,” 35, of Atlanta, Ga., to 66 months of incarceration, followed by three years of supervised release. Pack pleaded guilty to the charges on November 12, 2024. 

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

Assistant United States Attorney Joshua May, and former Assistant U.S. Attorneys Jesika French and Norman Barnett, prosecuted the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6280.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Shevoy Brown, a former officer with the Hapeville (GA) Police Department, has been arraigned on charges of using unreasonable force by repeatedly tasing a handcuffed detainee who had been arrested for trespassing.                                                                                                                                     

“Our local law enforcement partners employ dedicated officers who risk their lives and safety every day to help make our district safer.  This indictment alleges conduct by a former officer that runs counter to the culture of professionalism and public service that epitomizes the work performed by police officers in and outside our district,” said Acting United States Attorney Richard S. Moultrie, Jr.

“People being held under arrest have the right to be treated humanely,” said FBI Atlanta Special Agent in Charge Paul Brown. “The FBI and our law enforcement partners will continue to protect the civil rights of the public and ensure those who abuse their power are held responsible.”

According to Acting U.S. Attorney Moultrie, the indictment, information provided in court, and other publicly available information: On June 3, 2024, Hapeville, Georgia Police Department officers arrested a man for trespassing and transported him to the department’s headquarters.  The man was placed alone in a small holding cell and handcuffed to a stationary bench.  Although the detainee was a threat to no one, former Hapeville Police Officer Shevoy Brown allegedly tased him at least six times without any legal justification. The repeated tasing injured the detainee and required medical attention.  Following the tasing, Brown allegedly wrote a false use of force report to cover up his conduct.  So in addition to the offense of excessive force, Brown is also charged with obstruction of justice.

Shevoy Brown, of Hampton, Georgia, was arraigned before Chief U.S. Magistrate Judge Russell G. Vineyard.  He was indicted by a federal grand jury on February 12, 2025.

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

This case is being investigated by the Federal Bureau of Investigation with assistance from the Georgia Bureau of Investigation.

Assistant United States Attorneys Brent Alan Gray and Bret R. Hobson are prosecuting the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6280.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA – Jerry Baptiste, the last of 20 defendants charged in a wide-ranging criminal scheme to steal Paycheck Protection Program funds during the COVID-19 pandemic, has been sentenced for his role in the scheme.

“This defendant and his co-conspirators used an unprecedented global crisis to defraud the government and the American people,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “Today’s tough, but fair, sentence sends the message that stealing from the government does not pay.” 

“This sentencing wraps up an exhaustive investigation into a fraud scheme that stole emergency funds from businesses and individuals that desperately needed them during the Covid-19 pandemic,” said Paul Brown, Special Agent in Charge of FBI Atlanta.  “The FBI will make every effort to ensure federal funds are used as intended and punish anyone who would steal from our government.”

“The sentencings of the 20 defendants serves as a reminder to those who committed PPP fraud that investigations into their criminal acts have not ended,” said Special Agent in Charge Demetrius Hardeman, IRS Criminal Investigation, Atlanta Field Office. “IRS Criminal Investigation special agents will continue their diligent search for those who defrauded the American people during the COVID-19 pandemic.”

According to Acting U.S. Attorney Moultrie, the third superseding indictment, and other information presented in court: from April 2020 through May 2020, Jerry Baptiste conspired with Darrell Thomas, Denesseria Slaton, Amanda Christian, Charles Petty, Bern Benoit, and others to submit a fraudulent Paycheck Protection Program (“PPP”) loan application for Transportation Management Services Inc. (“Transportation Management”), a company that Benoit purported to own. The PPP loan application for Transportation Management falsely represented that it maintained 66 employees and an average monthly payroll of $332,167, and that it would use the PPP funds for payroll, lease payments or mortgage interest, and utilities.

To support its payroll figures, Transportation Management submitted with its PPP loan application false IRS Form 941s, which are the Employer’s Quarterly Federal Tax Return, for each quarter of 2019. Transportation Management also included with its PPP loan application a fraudulent bank statement. Through the Transportation Management PPP loan application, Baptiste and his co-conspirators fraudulently obtained $830,417. Baptiste also participated in preparing other fraudulent PPP loans.

Jerry Baptiste, 47, of Miami, Florida was sentenced by U.S. District Judge J. P. Boulee to six and a half years in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of$830,417. On October 29, 2024, Baptiste pleaded guilty to money laundering pursuant to a negotiated plea agreement.

All the defendants in Baptiste’s case have now been convicted and sentenced, with punishments ranging from probation to 15 years’ imprisonment:

• Darrell Thomas. On June 16, 2021, Thomas pleaded guilty to charges of conspiracy to commit bank and wire fraud and money laundering. On May 9, 2022, Thomas was sentenced to 180 months’ imprisonment followed by five years of supervised release, and ordered to pay $13,206,752.10 in restitution.
• Andre Lee Gaines. On June 17, 2021, Gaines pleaded guilty to the charge of making a false statement. On October 5, 2021, Gaines was sentenced to five years’ probation and ordered to pay $806,710 in restitution.
• Kahlil Gibran Green. On September 1, 2020, Green pleaded guilty to the charge of conspiracy to commit bank and wire fraud. On January 14, 2021, Green was sentenced to 41 months’ imprisonment followed by five years of supervised release, and ordered to pay $830,000 in restitution.
• Bern Benoit. On March 11, 2021, Benoit pleaded guilty to the charge of conspiracy to commit bank and wire fraud. On September 8, 2021, Benoit was sentenced to 27 months’ imprisonment followed by five years of supervised release, and ordered to pay $1,105,217 in restitution.
• Carla Jackson. On February 15, 2024, Jackson was found guilty of money laundering by jury verdict. On May 16, 2024, Jackson was sentenced to 36 months’ imprisonment followed by two years of supervised release, and ordered to pay $335,238.22 in restitution.
• Ricky Dixon. On August 1, 2022, Dixon pleaded guilty to the charges of aggravated identity theft and conspiracy to commit money laundering. On January 25, 2023, Dixon was sentenced to 100 months’ imprisonment followed by three years of supervised release, and ordered to pay $4,320,928.31 in restitution.
• Meghan Thomas. On July 27, 2022, Thomas pleaded guilty to the charge of conspiracy to commit wire fraud. On May 23, 2023, Thomas was sentenced to 18 months’ imprisonment followed by three years of supervised release, and ordered to pay $2,381,760.35 in restitution.
• Jesika Blakely. On March 15, 2022, Blakely pleaded guilty to the charge of conspiracy to commit money laundering. On February 8, 2023, Blakely was sentenced to 36 months’ imprisonment followed by three years of supervised release, and ordered to pay $5,348,498.89 in restitution.
• Amanda Christian. On March 5, 2022, Christian pleaded guilty to the charge of conspiracy to commit wire fraud. On September 13, 2022, Christian was sentenced to 41 months’ imprisonment followed by three years of supervised release, and ordered to pay $835,542 in restitution.
• Dwan Ashong. On June 29, 2022, Ashong pleaded guilty to the charge of conspiracy to commit money laundering. On October 31, 2022, Ashong was sentenced to 51 months’ imprisonment followed by three years of supervised release, and ordered to pay $3,604,807 in restitution.
• John Gaines. On January 31, 2024, Gaines pleaded guilty to the charge of money laundering. On June 26, 2024, Gaines was sentenced to 63 months’ imprisonment followed by three years of supervised release, and ordered to pay $806,710 in restitution.
• Charles Petty. On November 2, 2021, Petty pleaded guilty to the charge of conspiracy to commit bank and wire fraud. On February 25, 2022, Petty was sentenced to 46 months’ imprisonment followed by five years of supervised release, and ordered to pay $830,417 in restitution.
• Derek Parker. On April 14, 2022, Parker pleaded guilty to the charge of conspiracy to commit wire fraud. On August 31, 2022, Parker was sentenced to 18 months’ imprisonment followed by three years of supervised release, and ordered to pay $163,620.40 in restitution.
• David Belgrave II. On May 25, 2022, Belgrave pleaded guilty to the charge of conspiracy to commit bank and wire fraud. On August 25, 2022, Belgrave was sentenced to nine months’ imprisonment followed by three years of supervised release, with 18 months on home detention, and ordered to pay $877,000 in restitution.
• Charles Hill IV. On September 29, 2021, Hill pleaded guilty to conspiracy to commit wire fraud. On January 12, 2022, Hill was sentenced to five years’ probation, with 27 months on home detention, and ordered to pay $1,004,805 in restitution.
• Ryan Whittley. On May 25, 2022, Whittley pleaded guilty to the charge of conspiracy to commit wire fraud. On August 29, 2022, Whittley was sentenced to 21 months’ imprisonment followed by three years of supervised release, and ordered to pay $797,275 in restitution.
• El Hadj Sall. On August 24, 2022, Sall pleaded guilty to the charge of conspiracy to commit wire fraud. On November 29, 2022, Sall was sentenced to 27 months’ imprisonment followed by three years of supervised release, and ordered to pay $973,585 in restitution.
• Rick McDuffie. On April 27, 2022, McDuffie pleaded guilty to the charge of conspiracy to commit wire fraud. On August 23, 2022, McDuffie was sentenced to 24 months’ imprisonment followed by one year of supervised release, and ordered to pay $5,125 in restitution.
• Teldrin Foster. On February 15, 2024, Foster was found guilty of conspiracy to commit wire fraud, conspiracy to commit bank and wire fraud, wire fraud, bank fraud, making a false statement to a federally insured bank, and money laundering by jury verdict. On June 25, 2024, Foster was sentenced to 121 months’ imprisonment followed by three years of supervised release, and ordered to pay $9,606,627.35 in restitution. 

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

Assistant U.S. Attorneys Samir Kaushal and Nathan Kitchens, and former Assistant U.S. Attorneys Tal Chaiken and Norman Barnett, of the Northern District of Georgia, and Trial Attorney Siji Moore of the Criminal Division’s Fraud Section, prosecuted the case.

The Department of Justice remains vigilant in detecting, investigating, and prosecuting wrongdoing related to the COVID-19 pandemic. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (“NCDF”) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.         

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6280. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA – Following a five-day jury trial, Ivan Van Beverhoudt, 45, of St. Thomas, U.S. Virgin Islands, has been convicted of importing and possessing with intent to distribute more than 16 kilograms of cocaine.

“Van Beverhoudt used his trusted position as a U.S. Customs and Border Protection officer to circumvent the law and smuggle dangerous drugs into our community,” said Acting U.S. Attorney Richard S. Moultrie, Jr.  “Thanks to the diligent efforts of our law enforcement partners, Van Beverhoudt is now being held accountable and faces time in federal prison.”

According to Acting U.S. Attorney Moultrie, the charges, and other information presented in court: On January 10, 2020, Van Beverhoudt, a former U.S. Customs and Border Protection officer, boarded a commercial flight from St. Thomas, U.S. Virgin Islands to Atlanta with 16 bricks of cocaine in two carry-on bags.  To avoid TSA screening in St. Thomas, Van Beverhoudt traveled in his official capacity with his loaded CBP-issued firearm.  Upon arriving at the Atlanta Hartsfield-Jackson International Airport, en route to his final destination of Baltimore, Maryland, a trained narcotics K-9 officer in the jetway alerted to Van Beverhoudt’s luggage, resulting in the discovery of the cocaine. 

At the conclusion of his jury trial, Van Beverhoudt was convicted of conspiracy to import cocaine into the United States, importation of cocaine into the United States, conspiracy to possess with intent to distribute cocaine, and possession with intent to distribute cocaine.  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 U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, with valuable assistance provided by the U.S. Customs and Border Protection and Department of Homeland Security, Office of the Inspector General. 

Assistant U.S. Attorneys Bethany L. Rupert and Bret R. Hobson are prosecuting the case.  Assistant U.S. Attorney Laurel B. Milam also contributed to the prosecution of 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.gov.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6280.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Omar Cuenca-Marino, 41, of Guerrero, Mexico, has been arraigned before Chief United States Magistrate Judge Russell G. Vineyard on federal charges of conspiracy to possess with the intent to distribute, and unlawful import of, methamphetamine, cocaine, and heroin into the United States, and conspiracy to commit money laundering.  Cuenca-Marino, who was the alleged leader of the Los Rojos Mexican Drug Cartel, was indicted by a federal grand jury on December 21, 2016.  

“Robust law enforcement partnerships, tenacious investigators, and a resilient determination to eliminate cartels that import deadly drugs into our communities culminated in the charges and recent extradition of this alleged drug cartel leader,” said Acting United States Attorney Richard S. Moultrie, Jr. “This prosecution sends a strong message to the cartels and their leadership, no matter where they reside: you will face justice.”

“The arrest and extradition of Omar Cuenca-Marino, the alleged Los Rojos cartel leader, marks a significant success for the ongoing U.S. efforts to dismantle drug trafficking cartels and secure our borders,” said Steven N. Schrank, Special Agent in Charge of HSI Atlanta, which covers Georgia and Alabama. “As part of our commitment to combating the opioid crisis and transnational crime, we are leveraging every available resource to disrupt cross border criminal operations. This case sends a clear message that we, alongside our law enforcement partners, will not tolerate those who seek to profit from the distribution of dangerous narcotics.”

“The success of this investigation demonstrates DEA will use all of its resources to destroy drug distribution networks that are endangering our communities,” said Jae W. Chung, Acting Special Agent in Charge of the DEA Atlanta Division.

“Drug cartels have caused the death of many people in the United States and Mexico through violence and the distribution of illegal drugs,” said Special Agent in Charge Demetrius Hardeman, IRS Criminal Investigation, Atlanta Field Office. “Once identified by the Organized Crime Drug Enforcement Task Forces, IRS Criminal Investigation special agents investigate these cartels finances and their involvement with narcotics to help bring them down.”

According to Acting U.S. Attorney Moultrie, the charges, and other information presented in court: An investigation by law enforcement authorities identified a drug cartel based in Mexico that, between approximately 2013 and 2016, was responsible for importing large, distribution quantities of heroin, methamphetamine, and cocaine from Mexico into the United States.  The investigation identified Cuenca-Marino as the alleged Mexico-based leader of the cartel who oversaw the preparation of thousands of kilograms of cocaine, methamphetamine, and heroin in Mexico and arranged to have the drugs smuggled into the United States, using buses and tractor-trailers.  In addition, Cuenca-Marino allegedly directed the collection of millions of dollars of drug proceeds for transport from the United States back to Mexico.

For instance:

• On October 11, 2013, a law enforcement operation in Vinings and Hiram, Georgia led to the seizure of approximately 75 kilograms of methamphetamine, 23 kilograms of heroin, and 47 kilograms of cocaine.  Cuenca-Marino allegedly directed the smuggling of these drugs into the United States for distribution in the Atlanta-metro area.
• On November 20, 2015, law enforcement seized 76 packages of cocaine from a vehicle in a parking lot in Duluth, Georgia.  The investigation revealed that Cuenca-Marino had relayed the phone number of the Atlanta-based trafficker who was about to take possession of the drugs.
• On February 9, 2016, law enforcement stopped a vehicle traveling on Interstate 44 in Phelps County, Missouri and found $425,900 in drug proceeds.  The driver, who was enroute to Mexico, allegedly contacted Cuenca-Marino the following day to report that the vehicle had been in an “accident.”

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

The investigation and prosecution of this case is led by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Drug Enforcement Administration, and Internal Revenue Service Criminal Investigation, with valuable assistance from the U.S. Marshals Service, the Cobb County Police Department, Cobb County Sheriff’s Office, Marietta Police Department, Powder Springs Police Department, Henry County Police Department, Clayton County Sheriff’s Office, Georgia Bureau of Investigation, DeKalb County Police Department, Alabama Drug Task Force, Newnan Police Department, Conyers Police Department, Gwinnett County Judicial Task Force, United States Customs and Border Protection, and the Georgia State Patrol.

Assistant U.S. Attorney Michael Herskowitz is prosecuting the case.  Former Assistant U.S. Attorneys Nicholas Hartigan and Michael J. Brown, as well as the U.S. Department of Justice, Criminal Division’s Office of International Affairs and Office of Enforcement Operations, provided valuable assistance in the investigation. Also, the Department of Justice's Office of International Affairs coordinated with law enforcement partners in Mexico to secure the arrest and extradition Cuenca-Marino.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to eliminate the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.

The specific mission of the David G. Wilhelm Atlanta OCDETF Strike Force (Atlanta Strike Force) is to eliminate transnational organized crime syndicates and major drug trafficking and money laundering organizations in the Atlanta metropolitan area and the Northern District of Georgia. To accomplish this mission, the Atlanta Strike Force will target these organizations’ leaders, focusing on targets designated as Consolidated Priority Organization Targets, Regional Priority Organization Targets, and their associates.  The Atlanta Strike Force is comprised of agents and officers from ATF, DEA, FBI, HSI, USMS, USPIS, and IRS, as well as numerous state and local agencies; and the prosecution is being led by the Office of the United States Attorney for the Northern District of Georgia.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6280.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Irma Elvira Cruz, also known as “Huzipol” and “Madre,” 60, of Mexico, has been arraigned before Russell G. Vineyard, Chief United States Magistrate Judge, on federal charges of Conspiracy to Unlawfully Import Cocaine into the United States and Possession of Cocaine with Intent to Distribute.  Cruz was indicted by a federal grand jury on February 14, 2017. 

“Cruz allegedly played a critical role in the trafficking of hundreds of kilograms of cocaine into the United States,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “Cruz’s extradition from Mexico is an important step in holding her accountable for her alleged role in bringing dangerous drugs into the United States and into our local communities. We thank our federal, state, and local law enforcement partners for their work in this investigation and our international partners for their cooperation in helping us bring Cruz to justice.”

“Drug traffickers exploit vulnerable members of our community to generate profits,” said Jae W. Chung, Acting Special Agent in Charge of the Atlanta Division. “Cases like this clearly demonstrate the resolve of the DEA to hold drug traffickers accountable.”

“The extradition and arraignment of Irma Elvira Cruz, an alleged key figure in an international cocaine trafficking organization, demonstrates the unwavering commitment of HSI and our partners to dismantling transnational criminal networks,” said Steven N. Schrank, Special Agent in Charge of HSI Atlanta, which covers Georgia and Alabama. “By targeting those who facilitate the flow of dangerous narcotics into our communities, we are sending a strong message that we will pursue justice across borders and hold traffickers accountable.”

According to Acting U.S. Attorney Moultrie, Jr., the charges, and other information presented in court: In 2013, United States law enforcement identified a Mexico-based drug trafficking organization that, between approximately 2013 and 2016, imported large quantities of cocaine from Colombia, through Mexico and into the United States for distribution, and transported drug proceeds from the United States to Mexico. The investigation identified Irma Elvira Cruz as an associate of the drug trafficking organization, allegedly responsible for the quality control testing of multi-kilogram quantities of cocaine, sent from Colombia to Costa Rica and Mexico, and intended to be delivered into the United States.

Cruz allegedly conspired with others in Mexico, Colombia, Guatemala, and elsewhere to coordinate the transportation of multi-kilogram quantities of cocaine from Colombia through the coast of Central America for distribution in Mexico and the United States, including Atlanta, Georgia. Specifically, Cruz was allegedly responsible for testing the quality of a large shipment of cocaine ultimately destined for Atlanta.

The investigation revealed that on or about September 3, 2015, Cruz traveled to the organization’s stash house in Heredia, Belen, Asuncion, Costa Rica, to test the purity of the cocaine to be delivered into the United States. The following day, law enforcement authorities stopped vehicles driven by Cruz’s associates leaving the stash house and seized approximately 100 kilograms of cocaine. Law enforcement authorities then searched the stash house and seized approximately 221 kilograms of cocaine.

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

This case is being investigated by the Drug Enforcement Administration, United States Coast Guard, United States Navy, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, United States Border Patrol, DeKalb County Police Department, and Georgia State Patrol.

Assistant U.S. Attorneys Thomas M. Forsyth, III and Elizabeth M. Hathaway are prosecuting the case. Former Assistant U.S. Attorney Lisa Tarvin contributed to the prosecution as well. Also, the Department of Justice’s Office of International Affairs coordinated with law enforcement partners in Mexico to secure the arrest and extradition of Cruz.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation.  OCDETF identifies and eliminates the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.  Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6280.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Brian H. Sperber and Edmond S. Norkus have received prison sentences for conspiring to commit wire fraud in a scheme in which the men tricked expectant purchasers of personal protective equipment out of more than $14 million. 

“Sperber and Norkus cashed in on the unprecedented scarcity and skyrocketing price of personal protective equipment to get rich quick at a time when the COVID-19 pandemic was exploding,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “Now they justifiably confront prison terms for their cynical, illegal cash grab.”

“These sentences underline the FBI’s commitment to holding those who exploit federal relief programs for personal gain accountable,” said FBI Atlanta Acting Special Agent in Charge Sean Burke.

According to Acting U.S. Attorney Moultrie, the charges, and other information presented in court: Shortly before the COVID-19 pandemic began, Brian H. Sperber became an authorized distributor for a Georgia-based personal protective equipment (“PPE”) manufacturer. Edmond S. Norkus operated warehouse space in Florida and was Sperber’s longstanding business associate. As the pandemic worsened, demand for, and market value of, PPE steeply increased. Even though Sperber was only authorized to sell to customers in a specific geographic sales territory and manufacturers had only extremely limited supplies available, Sperber and Norkus promised to sell large quantities of PPE to a wide range of would-be buyers. 

But to make it appear that they could deliver on their promise, Sperber and Norkus diverted and showcased products already earmarked for other customers. They also provided customers with a variety of altered and counterfeit documents, designed to deceive customers into believing the products they had ordered were on the way. Ultimately, there were no products to supply and Sperber and Norkus pocketed the money while providing the victims with nothing.

United States District Judge Michael J. Brown sentenced Brian H. Sperber, 48, of Plantation, Fla., to two years, two months in prison, followed by three years of supervised release. He was also ordered to pay restitution in the amount of $14,231,605.36. Sperber was convicted on May 28, 2024, after he pleaded guilty.

Judge Brown sentenced Edmond S. Norkus, 61, of Deerfield Beach, Fla., to three years in prison, followed by three years of supervised release. Norkus was ordered to pay restitution in the amount of $13,821,605.36. Norkus was convicted on May 28, 2024, after he pleaded guilty.

Sperber used proceeds from the scheme to purchase a multi-million dollar waterfront mansion in Boca Raton, Florida. In a related civil forfeiture action, the United States and Sperber agreed to sell the property, netting approximately $4 million, and resolve the forfeiture in the criminal prosecution. As part of Sperber’s sentence, the district court forfeited Sperber’s interest in the funds. The United States, in Sperber’s plea agreement, agreed to recommend that the funds seized from the sale of the property be restored to the victims named in the restitution order. 

This case was investigated by the Federal Bureau of Investigation.

Assistant United States Attorneys Alana R. Black and C. Brock Brockington prosecuted the case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6280.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Rajesh Motibhai Patel has been sentenced to two years in federal prison for violating his patient’s constitutional right to bodily integrity while acting under color of law and for the offense of abusive sexual contact.                                                                                            

“Patel used his position of trust as a VA physician to sexually assault his female veteran patient who had honorably served our country,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “His crimes were an egregious breach of that trust and an abuse of his power. This sentence prevents Patel from causing future harm to veterans who seek care from the VA.”

“This sentence holds Dr. Patel accountable for the vile acts he committed while serving as a VA physician,” said Special Agent in Charge David Spilker with the Department of Veterans Affairs Office of Inspector General’s Southeast Field Office. “VA employees are entrusted with keeping our nation’s veterans safe while receiving care. Acts of violence against veterans in VA facilities are reprehensible and erodes that trust. The VA OIG commends the dedicated prosecutors at the U.S. Attorney’s Office for their efforts in this case.”

According to Acting U.S. Attorney Moultrie, the charges, and other information presented in court: Rajesh Motibhai Patel, a physician at the Veterans Affairs Medical Center, was convicted of sexually assaulting a female veteran patient during what should have been a routine medical exam in January 2020. During the exam, Patel unlawfully touched the victim’s body, including her breast and vaginal area, in ways that violated her consent and for no legitimate medical purpose.

Rajesh Motibhai Patel, 69, of Lilburn, Ga., was sentenced to two years in prison to be followed by 15 years of supervised release. Patel is prohibited from practicing medicine while on supervised release. Patel was found guilty by a jury on November 5, 2024, of violating his patient’s constitutional right to bodily integrity while acting under color of law and of the offense of abusive sexual contact. 

This case is being investigated by the Department of Veterans Affairs, Office of Inspector General.

Assistant United States Attorneys Erin N. Spritzer and Jennifer Keen prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6280. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Montrez Ballard has been sentenced to ten years in prison after firing a machine gun at a Georgia State Patrol officer. 

“Ballard’s brazen actions endangered the life of a law enforcement officer,” said Acting U.S. Attorney Richard Moultrie, Jr.  “This lengthy prison sentence reflects Ballard’s dangerous, and potentially lethal, attack on a Georgia State Patrol trooper whose very mission is to help keep our community safe.”

“The swift and coordinated response of law enforcement ensured that a dangerous individual was taken off the streets before he could inflict further harm. ATF will not stand by while criminals use illegally modified weapons to terrorize our communities. We will continue to be relentless in our pursuit of those who believe they can act without consequence,” said Bureau of Alcohol, Tobacco, Firearms and Explosives Assistant Special Agent in Charge Alicia D. Jones.

According to Acting U.S. Attorney Moultrie, the charges, and other information presented in court:  On July 21, 2023, Ballard, driving a Nissan Maxima, abruptly cut off a Georgia State Patrol (GSP) trooper in Atlanta.  Ballard fled from the trooper after the officer activated his emergency equipment to stop Ballard.  In his attempt to evade the trooper, Ballard drove more than 20 miles per hour above the speed limit in a residential neighborhood, ran stop signs, and nearly struck another motorist. 

Minutes into the chase, Ballard’s vehicle crashed into a stop sign.  Ballard then exited his vehicle and fled on foot.  When the trooper chased him, Ballard confronted the officer and fired at least three shots at the trooper.  The trooper returned fire but Ballard escaped.

Other law enforcement agencies, including the Atlanta Police Department and Fulton County Sheriff’s Office, responded to help locate Ballard.  Officers eventually arrested Ballard – who was on probation for a state robbery offense at the time – and recovered his firearm.  Ballard’s gun, a Glock 19 9mm handgun, was examined and determined to be equipped with a device that converted the weapon into a machine gun, allowing the gun to fire continuously without multiple trigger pulls. 

 Montrez Ballard, 21, of Hampton, Ga., was sentenced by U.S. District Judge J.P. Boulee to ten years in prison, followed by three years of supervised release.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Georgia Bureau of Investigation, with valuable assistance from the Atlanta Police Department and Fulton County Sheriff’s Office.

Assistant United States Attorney Dwayne A. Brown, Jr. prosecuted the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6280. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA, Ga. -- Gregory Rehberg pleaded guilty today to wire fraud for stealing hundreds of thousands of dollars from the U.S. Postal Service based on false invoices.

“Rehberg concealed the use of subcontractors, made false statements, and provided false documents to overcharge the U.S. Postal Service for maintenance work he never performed,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “Our office is committed to prosecuting those who defraud the United States and its agencies for their personal gain at the expense of taxpayers. We will continue to investigate and identify those who exploit government contracts and hold those bad actors accountable.”

“We are pleased to have contributed to this investigation and applaud the exceptional work by the United States Attorney’s Office for protecting both U.S. Postal Service funds and the integrity of our repairs and maintenance program,” said Executive Special Agent in Charge Kenneth Cleevely of the U.S. Postal Service (USPS), Office of Inspector General (OIG). “Special Agents of the USPS OIG will continue to aggressively investigate those who would engage in fraudulent activities designed to defraud the Postal Service.” 

According to Acting U.S. Attorney Moultrie, the charges, and other information presented in court: GLR Group LLC., operated by Gregory Rehberg, was contracted by EMCOR Facilities Services, Inc. to work on repairs and construction work at U.S. Postal Service locations in Georgia, Florida, Alabama, North Carolina, and South Carolina.  Rehberg submitted false invoices to EMCOR for supposed services he had performed, when in fact, he subcontracted the work for lower rates than reported on the invoices he submitted. 

Rehberg routinely marked up the price on his invoices, at times as much as forty percent. In total, Rehberg submitted nearly 900 invoices on behalf of GLR to EMCOR between 2019 and 2024, receiving approximately $2.9 million in payments, and overbilling by more than $730,000.

Sentencing for Gregory Rehberg, 55, of Atlanta, Georgia, is scheduled for May 15, 2025 at 10:30 a.m. before Chief United States District Judge Timothy C. Batten, Sr.       

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

Assistant United States Attorney Natasha Cooper is prosecuting the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6280. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

A New York man pleaded guilty yesterday in the Northern District of Georgia for his role in a scheme to defraud investors in connection with two commercial real estate investments.

According to court documents, Elchonon “Elie” Schwartz, 46, of New York City, engaged in a scheme to defraud investors who sought to invest in commercial real estate through the crowdfunding commercial real estate investing website CrowdStreet Marketplace (CrowdStreet). Beginning May 2022, Schwartz solicited investments through CrowdStreet for a large commercial real estate complex in Atlanta and ultimately raised approximately $54 million from about 654 investors. Beginning in November 2022, Schwartz solicited investments again through CrowdStreet in connection with a mixed-use building in Miami Beach, Florida, and ultimately raised approximately $8.8 million from about 167 investors. In total, Schwartz raised approximately $62.8 million from investors through CrowdStreet.

As part of the investment solicitation process, Schwartz executed agreements that stated, in part, that the funds raised from CrowdStreet investors would be held in segregated bank accounts controlled by Schwartz. In the documentation provided to CrowdStreet investors, Schwartz represented that he would only use the investors’ money to fund the investment in each property and that he had a fiduciary duty to safeguard the funds and to prohibit commingling or use of the money that did not benefit each investment.

Contrary to these representations, however, Schwartz misappropriated and converted the CrowdStreet investor funds for his own use. Schwartz directed substantially all the CrowdStreet investor money into his personal bank, personal brokerage account, and accounts for unrelated commercial real estate investments he controlled. For example, Schwartz used the CrowdStreet investor funds to purchase luxury watches, to invest in stocks and options in his brokerage account, and to pay for payroll expenses for his unrelated commercial real estate businesses. Ultimately, in mid-July 2023, the two corporate entities that Schwartz had formed to receive funds from CrowdStreet investors both filed for Chapter 11 bankruptcy.

Schwartz pleaded guilty to one count of wire fraud. He is scheduled to be sentenced on May 19 and faces a maximum penalty of 20 years in prison. A sentencing hearing will be scheduled at a later date. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, Acting U.S. Attorney Richard S. Moultrie Jr. for the Northern District of Georgia, and Acting Special Agent in Charge Sean Burke of the FBI Atlanta Field Office made the announcement.

The FBI Atlanta Field Office investigated the case. The U.S. Securities and Exchange Commission’s Division of Enforcement provided valuable assistance in the investigation.

Trial Attorney Matthew F. Sullivan of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kelly Connors for the Northern District of Georgia are prosecuting the case. Former Assistant U.S. Attorneys David O’Neal and Christopher Huber for the Northern District of Georgia provided substantial assistance with the investigation and prosecution.

ATLANTA, Ga. – Thirty-eight members of a drug trafficking organization, including several State of Georgia prison inmates, have been sentenced for their roles in coordinating and distributing deadly heroin, methamphetamine, and fentanyl throughout the metro-Atlanta area, as well as laundering drug proceeds to Mexico.

“The successful dismantling of this large organization is a result of a tenacious multi-year effort from federal, state, and local authorities to root out narcotics trafficking originating from state prisons,” said Acting U.S. Attorney Richard S. Moultrie, Jr.  “Our office will continue to work closely with our law enforcement partners to leverage all resources to identify, apprehend, and prosecute entire networks of offenders responsible for distributing deadly drugs into our communities.” 

“These sentences mirror the destructive impact on the community caused by this violent drug trafficking organization,” said Jae W. Chung, Acting Special Agent in Charge of the DEA Atlanta Division. “Wherever you operate, if you distribute dangerous drugs, DEA will find you and hold you accountable.”

“Thanks to the hard work and collaboration of our local, state, and federal law enforcement partners, thirty-eight members of this extensive drug distribution network will spend significant time behind bars where they will no longer be able to plague our community with poison,” said Sean Burke, Special Agent in Charge of FBI Atlanta. 

According to Acting U.S. Attorney Moultrie, the charges and other information presented in court: During the investigation, federal special agents learned that a network of prison inmates was using contraband cell phones to broker drug transactions throughout the metro-Atlanta area, including importing drug shipments from Mexico and other states. These prison brokers relied on conspirators on the outside to store, package and distribute multiple types of illegal drugs. Other members of the organization were responsible for laundering the proceeds from the drug sales to Mexico using local money remitters.  The organization also repeatedly threatened violence to uncooperative members.  In one case, agents learned of a plot to abduct and murder a narcotics dealer.  In response, law enforcement quickly mobilized to disrupt the plan.

After the first phase of the investigation concluded, a Grand Jury sitting in the Northern District of Georgia returned an indictment against 19 of the conspirators for drug trafficking and money laundering offenses.  During the second phase of the investigation, agents identified additional conspirators including two of the high-level prison brokers, Jesus Sanchez-Morales and Juan Ramirez, who were later indicted by the Grand Jury for drug trafficking offenses.  After Ramirez was brought into federal custody, he used another contraband cell phone to broker drug deals, including the attempted distribution of fentanyl.  The Grand Jury later charged him with this new conduct.  

Through this multi-year investigation, agents seized over 250 kilograms of methamphetamine, 25 gallons of liquid methamphetamine, more than 12,000 fentanyl pills, kilogram-quantities of fentanyl powder, heroin, and marijuana, and over $450,000 in drug proceeds. 

The defendants were convicted and sentenced by U.S. District Judge Leigh Martin May:

• Juan Ramirez was sentenced earlier today to 27 years in prison to be followed by five years of supervised release .  Ramirez was convicted of ten drug trafficking counts including Conspiracy and Possession with the Intent to Distribute  Methamphetamine, Heroin, and Fentanyl, after a jury found him guilty of these charges on July 25, 2024.
• Jesus Sanchez-Morales was sentenced to 27 years in prison to be followed by five years of supervised release. Sanchez-Morales was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine, Heroin, and Fentanyl on June 22, 2020, after he pleaded guilty.
• Martin Maldonado was sentenced to 19 years, seven months in prison to be followed by five years of supervised release. Maldonado was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine, Heroin, and Fentanyl on April 26, 2021, after he pleaded guilty.
• Benjamin Villareal Perez was sentenced to 19 years, seven months in prison to be followed by five years of supervised release. Perez was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine, Heroin, and Fentanyl on September 17, 2019, after he pleaded guilty.
• Jaime Chavez was sentenced to 17 years in prison to be followed by five years of supervised release. Chavez was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine, Heroin, and Fentanyl and Possession of a Firearm in Furtherance of a Drug Trafficking Crime on April 30, 2021, after he pleaded guilty.
• Aszavious Anderson was sentenced to 15 years in prison to be followed by five years of supervised release. Anderson was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine, Heroin, and Fentanyl and Possession of a Firearm in Furtherance of a Drug Trafficking Crime on May 28, 2020, after he pleaded guilty.
• Kristofer Ty Armistead was sentenced to 15 years in prison to be followed by five years of supervised release. Armistead was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine on June 7, 2021, after he pleaded guilty.
• Mario Castillo was sentenced to 15 years in prison to be followed by five years of supervised release. Castillo was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine and Possession of a Firearm in Furtherance of a Drug Trafficking Crime on September 25, 2019, after he pleaded guilty.
• Aricus Cantrell Holloway was sentenced to 15 years in prison to be followed by five years of supervised release. Holloway was convicted of Conspiracy and Possession with Intent to Distribute Methamphetamine on April 24, 2023, after he pleaded guilty.
• Cristian Hernandez-Lovo was sentenced to 15 years in prison to be followed by five years of supervised release. Hernandez-Lovo was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine, Heroin, and Fentanyl and Possession of a Firearm in Furtherance of a Drug Trafficking Crime on September 24, 2019, after he pleaded guilty.
• Jesus Antonio Molina-Ortiz was sentenced to 15 years in prison to be followed by five years of supervised release. Molina-Ortiz was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine, Heroin, and Fentanyl and Possession of a Firearm in Furtherance of a Drug Trafficking Crime on August 10, 2020, after he pleaded guilty.
• Jamar Tyrone Zanders was sentenced to 15 years in prison to be followed by five years of supervised release. Zanders was convicted of Conspiracy and Possession with Intent to Distribute Methamphetamine on September 24, 2020, after he pleaded guilty.
• Brandon Richard Duncan was sentenced to 14 years in prison to be followed by five years of supervised release. Duncan was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine on July 9, 2021, after he pleaded guilty.
• Joseph Dominic Edwards was sentenced to 14 years in prison to be followed by five years of supervised release. Edwards was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine, Heroin, and Fentanyl on August 4, 2023, after he pleaded guilty.
• Rafael Alvarez was sentenced to 13 years in prison to be followed by five years of supervised release. Alvarez was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine, Heroin, and Fentanyl on August 13, 2019, after he pleaded guilty.
• Jason Garcia-Lara was sentenced to 13 years in prison to be followed by five years of supervised release. Garcia-Lara was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine on June 23, 2020, after he pleaded guilty.
• Jordan Duane Bowers was sentenced to 12 years, six months in prison to be followed by five years of supervised release. Bowers was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine, Fentanyl, and Heroin on May 10, 2022, after he pleaded guilty.
• Emmanuel De Santos Nieto was sentenced to 12 years in prison to be followed by five years of supervised release. De Santos Nieto was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine, Heroin, and Fentanyl on September 9, 2019, after he pleaded guilty.
• Salvador Valencia-Zavala was sentenced to 11 years, three months in prison to be followed by five years of supervised release. Valencia-Zavala was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine, Heroin, and Fentanyl on January 27, 2020, after he pleaded guilty.
• Marvin Gaye Banks was sentenced to 11 years in prison to be followed by five years of supervised release. Banks was convicted of Possession with Intent to Distribute Methamphetamine on July 15, 2020, after he pleaded guilty.
• Samantha Fagundes was sentenced to 11 years in prison to be followed by five years of supervised release. Fagundes was convicted of Conspiracy and Possession with the Intent to Distribute Methamphetamine, Heroin, and Fentanyl, on January 15, 2020, after she pleaded guilty.
• Alejandro Vasquez-Lopez was sentenced to 10 years, nine months in prison to be followed by five years of supervised release. Vasquez-Lopez was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine on May 24, 2021, after he pleaded guilty.
• Shelly Denise Class was sentenced to 10 years in prison to be followed by five years of supervised release. Class was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine, Heroin, and Fentanyl on October 10, 2019, after she pleaded guilty.
• Edgar Ochoa Martinez was sentenced to 10 years in prison to be followed by five years of supervised release. Martinez was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine, Heroin, and Fentanyl on July 22, 2019, after he pleaded guilty.
• Allison Nichole Daniel was sentenced to 10 years in prison to be followed by five years of supervised release. Daniel was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine on May 27, 2020, after she pleaded guilty.
• Enrique Rodriguez-Govea was sentenced to 10 years in prison to be followed by five years of supervised release. Rodriguez-Govea was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine, Heroin, and Fentanyl on May 30, 2019, after he pleaded guilty.
• Taurus Basil Stephens was sentenced to 10 years in prison to be followed by five years of supervised release. Stephens was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine on December 16, 2020, after he pleaded guilty.
• Raheem Jamal Morris was sentenced to nine years in prison to be followed by three years of supervised release. Morris was convicted of Conspiracy and Possession with Intent to Distribute Methamphetamine on June 26, 2023, after he pleaded guilty.
• Lilia Martinez Rodriguez was sentenced to eight years in prison to be followed by three years of supervised release. Martinez Rodriguez was convicted of Conspiracy to Commit Money Laundering on September 21, 2020, after she pleaded guilty.
• Roberto Rojas was sentenced to eight years in prison to be followed by five years of supervised release. Rojas was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine on January 13, 2023, after he pleaded guilty.
• Nicholas Charles Johnson was sentenced to seven years, eight months in prison to be followed by five years of supervised release. Johnson was convicted of Conspiracy and Possession with Intent to Distribute Methamphetamine on July 10, 2023, after he pleaded guilty.
• Leonardo Rosas was sentenced to six years in prison to be followed by five years of supervised release. Rosas was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine, Heroin, and Fentanyl on October 3, 2019, after he pleaded guilty.
• Daniel Gonzalez was sentenced to five years, four months in prison to be followed by five years of supervised release. Gonzalez was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine, Heroin, and Fentanyl on July 11, 2019, after he pleaded guilty.
• Juan Torres Chavez was sentenced to a time-served sentence of approximately four years, nine months in prison to be followed by three years of supervised release. Chavez was convicted of Possession with Intent to Distribute Methamphetamine on December 14, 2023, after he pleaded guilty.
• David Chavez-Ortiz was sentenced to four years in prison to be followed by five years of supervised release. Chavez-Ortiz was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine, Heroin, and Fentanyl on October 21, 2019, after he pleaded guilty.
• Antwonette Jarnez Thomas was sentenced to four years in prison to be followed by five years of supervised release. Thomas was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine on January 7, 2021, after she pleaded guilty.
• Erin Cortez was sentenced to three years in prison to be followed by three years of supervised release. Cortez was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine on January 22, 2020, after she pleaded guilty.
• Joaquin Flores, Jr. was sentenced to three years in prison to be followed by three years of supervised release. Flores was convicted of Conspiracy and Possession with Intent to Distribute Methamphetamine on January 19, 2024, after he pleaded guilty. 

Eusebio Paniagua-Paz remains a fugitive.  If you have any information about his whereabouts, please contact your local law enforcement agency. 

This case was investigated by the Drug Enforcement Administration and the Federal Bureau of Investigation, with valuable assistance provided by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Federal Bureau of Investigation, United States Marshals Service, Atlanta Police Department, Cobb County Sheriff’s Office, Coweta County Sheriff’s Office, DeKalb County Police Department, Forsyth County Sheriff’s Office, Georgia Department of Corrections, Georgia State Patrol, and the South Fulton Police Department.

Assistant United States Attorneys Alison B. Prout, Amy M. Palumbo, Elizabeth M. Hathaway, Sarah Klapman, and Nicholas Evert, together with former Assistant United States Attorneys Tyler Mann, Scott McAfee, and Erin H. Harris, prosecuted the case.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6280.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Elchonon “Elie” Schwartz pleaded guilty today to wire fraud for executing a massive investment fraud scheme that caused more than 800 investors to send approximately $62.8 million to Schwartz, which he then diverted for his own use. Approximately $54 million dollars in investments were intended for the Atlanta Financial Center, a planned commercial real estate complex on Peachtree Road. 

“Seeking to do nothing more than pad his own bank accounts and buy expensive luxury items, Elie Schwartz betrayed hundreds of investors who sought the opportunity to invest in these commercial real estate projects,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “This office is committed to protecting investors from individuals, like Schwartz, who defraud donors out of their hard-earned money and seek to prioritize their own greed at the expense of legitimate investors.”

“Although investment fraud schemes are not violent crimes, they are just as destructive as they can destroy the livelihoods of entire families. Schwartz admitted to this complex scheme out of pure greed and will now face the steep consequences,” said Sean Burke, Acting Special Agent in Charge of FBI Atlanta. 

According to Acting U.S. Attorney Moultrie, the charges, and other information presented in court: Elie Schwartz ran a successful commercial real estate investment firm. Beginning in May 2022, he solicited investments through CrowdStreet Marketplace in connection with a large commercial real estate complex in Atlanta, Georgia (“Atlanta Financial Center”), and ultimately raised approximately $54 million from approximately 654 investors for this venture. Later, beginning in November 2022, Schwartz again solicited investments through CrowdStreet concerning a mixed-use building in Miami Beach, Florida (“Lincoln Place”), and ultimately raised approximately $8.8 million from approximately 167 investors for this development. In total, Schwartz raised approximately $62.8 million from investors through CrowdStreet for the investments in the Atlanta Financial Center and Lincoln Place. The CrowdStreet investor funds were deposited into a segregated bank account for each investment.

As part of the investment solicitation process, Schwartz executed agreements with CrowdStreet that stated, among other terms, that the funds raised from CrowdStreet investors would be held in segregated bank accounts controlled by Schwartz. In the documentation that was provided to CrowdStreet investors, Schwartz represented that he would only “use any proceeds from this Offering, net of any organizational and offering expenses, to fund” the investment in each property and that Schwartz had a fiduciary duty to safeguard the funds and prohibit commingling or use of the money that did not benefit each investment.

But contrary to the representations he made to CrowdStreet investors, and before either the Atlanta Financial Center or Lincoln Place transaction closed, Schwartz misappropriated and converted CrowdStreet investor funds for his own use. Beginning in June 2022, and continuing through June 2023, Schwartz transferred nearly all of the $62.8 million raised through CrowdStreet for the Atlanta Financial Center and Lincoln Place investments out of the segregated bank accounts. He then diverted these funds to his personal bank account, personal brokerage account, and accounts for other unrelated commercial real estate investments affiliated with, and controlled by, him.

Schwartz used the funds raised from the CrowdStreet investors to, among other things, pay for payroll expenses for his commercial real estate businesses, purchase luxury watches, and invest in stocks and options in his brokerage account. Ultimately, in mid-July 2023, the corporate entities that Schwartz formed to receive funds from CrowdStreet investors for their investments in the Atlanta Financial Center and Lincoln Place both filed for Chapter 11 bankruptcy.

Schwartz, 46, of New York, New York, pleaded guilty to one count of wire fraud and faces a maximum penalty of 20 years in prison. 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 19, 2025, at 2:00 p.m. before U.S. District Judge Steven D. Grimberg.       

This case is being investigated by the Federal Bureau of Investigation. The Securities and Exchange Commission’s Division of Enforcement provided valuable assistance in the investigation.

Assistant U.S. Attorney Kelly K. Connors and Trial Attorney Matthew F. Sullivan of the Criminal Division’s Fraud Section are prosecuting the case. Former Assistant U.S. Attorneys David O’Neal and Christopher Huber provided substantial assistance in the investigation and prosecution.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6280.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Thomas Addaquay has been sentenced following his conviction of 30 felonies related to two nationwide fraud schemes involving tax refund, business email compromise, and romance fraud scams.

“Addaquay’s fraud schemes impacted numerous victims across the country and resulted in millions in losses to the IRS and private citizens,” said Acting U.S. Attorney Richard S. Moultrie, Jr.  “The combined efforts of our federal and local law enforcement partners secured Addaquay’s successful prosecution and made it possible to obtain justice for the numerous innocent taxpayers whose lives were disrupted by this defendant’s criminal conduct and greed.”

“Addaquay’s criminal activities emotionally and financially harmed the lives of many innocent victims,” said Special Agent in Charge Demetrius Hardeman, IRS Criminal Investigation, Atlanta Field Office. “IRS Criminal Investigation is committed to bringing to justice those who victimize others through fraudulent financial schemes.”

“Scammers like Addaquay enrich themselves by preying on innocent people with no care for the lasting damage they cause,” said Frederick D. Houston, Special Agent in Charge, United States Secret Service Atlanta Field Office.  “As part of our dual protective and investigative mission, we are tasked with safeguarding the United States’ financial and payment systems from criminal exploitation. The U.S. Secret Service is committed to investigating cases of fraud and we work hand-in-hand with our law enforcement partners to pursue justice for victims of financial crime across the country.”

Stolen Identity Tax Refund Scheme

According to Acting U.S. Attorney Moultrie, the charges and other information presented in court: a trial jury found Addaquay guilty of 29 counts of fraud-related offenses including conspiracy to commit wire fraud, wire fraud, aggravated identity theft, money laundering conspiracy, and money laundering. His conduct related to a stolen identity tax refund fraud scheme. From at least 2011 to at least 2016, Addaquay obtained stolen names, social security numbers, and dates of birth of taxpayers to prepare and file fraudulent federal income tax returns. The filing of these fraudulent tax returns resulted in the issuance of thousands of tax refund checks. The district court determined that his scheme led to a loss to the IRS of more than $4 million.

Business Email Compromise and Romance Scams

In addition, Addaquay participated in schemes to defraud multiple victims through business email compromise and romance scams. His schemes involved, among other conduct, the use of false identities and hacked or spoofed email accounts to gain the confidence of victims to divert funds into bank accounts. Addaquay pleaded guilty to structuring the proceeds. Victims across the country lost over $3 million as a result of his scams.

Thomas Addaquay, 50, of Atlanta, Ga., was sentenced to a combined term of imprisonment of 12 years and six months, followed by three years of supervised release. He was also ordered to pay more than $7 million in restitution.

These cases were investigated by Internal Revenue Service-Criminal Investigation and the United States Secret Service, with valuable assistance from the Cobb County, Georgia, Sheriff’s Office.

Assistant United States Attorneys Sekret T. Sneed and Angela Adams prosecuted the cases.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6280. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA – Fourteen individuals have been sentenced to federal prison for their involvement in a prison-based drug trafficking ring responsible for the distribution of methamphetamine and heroin in the metro Atlanta area.

“Several of the defendants even continued their criminal activity by orchestrating drug transactions from prison, posing a serious risk to public safety,” said Acting U.S. Attorney Richard S. Moultrie, Jr.  “These sentences reflect the dedication and collaborative efforts of our federal, state, and local law enforcement partners to disrupt the distribution of poisonous drugs into our communities.”

 “These sentences reflect the destructive impact on the community caused by this drug trafficking organization,” said Jae W. Chung, Acting Special Agent in Charge of the DEA Atlanta Division. “Wherever you operate, if you distribute dangerous drugs, DEA will find you and hold you accountable.”

According to Acting U.S. Attorney Moultrie, the charges and other information presented in court: In January 2018, special agents with the Drug Enforcement Administration (DEA) discovered that Jesus Garcia-Gutierez and Miguel Elorza, while inmates at the Jenkins Correctional Center in Millen, Georgia, used a contraband cellphone to arrange drug transactions outside the prison facility.  Garcia-Gutierez and Elorza worked with numerous individuals outside the prison to coordinate several methamphetamine and heroin deals in the metro Atlanta area.

The defendants’ drug trafficking activity included the following conduct:  

• On May 24, 2018, Garcia-Gutierez arranged for David Crider, Jr. to receive two ounces of methamphetamine from another individual in Atlanta.  Following the deal, Georgia State Patrol (GSP) troopers stopped Crider’s vehicle and seized the drugs.
• On June 3, 2018, Anthony Bernard Jordan consulted with Garcia-Gutierez and then arranged for Sheila Hardy, Larry Mosley, and Nathaniel Jackson to travel from Albany, Georgia to Atlanta, to pick up heroin and methamphetamine from another drug dealer.  After the trio obtained the drugs, GSP troopers stopped their vehicle and seized 982 grams of methamphetamine and 475 grams of heroin.
• On August 16, 2018, Christopher Butler, who was Elorza’s former cellmate, coordinated with Joseph Brown to sell a kilogram of methamphetamine to a drug customer in Douglasville, Georgia. But Butler and Brown saw Douglas County Sheriff’s officers following them prior to the deal and discarded the drugs in a neighborhood yard, which were recovered by the officers.
• On August 30, 2018, Quantavius Foster, who was a counselor at the Jenkins Correction Center, met with Corea-Uriostegui in Augusta, Georgia to obtain over 100 grams of methamphetamine to smuggle into the prison for Garcia-Gutierez.  The plan was foiled when Richmond County Sheriff’s officers stopped Foster’s vehicle and seized the drugs.
• On October 16, 2018, Garcia-Gutierez instructed Darrell White, an Alabama heroin distributor, to travel to Doraville, Georgia to pick up drugs from another individual.  After the deal, GSP troopers stopped White’s vehicle and discovered more than 100 grams of heroin hidden in White’s clothes.
• On November 1, 2018, Garcia-Gutierez and Corea-Uriostegui arranged for Tiffany Julian and Jonathan Tyler Bryant to pick up 76 grams of methamphetamine and 48 prescription pills from a drug supplier in Atlanta.  After this deal, Bryant led GSP] troopers on a high-speed chase on Interstate 75 South through midtown Atlanta. During the pursuit, Bryant and Julian tossed the drugs from the car window, which were later recovered by law enforcement. 

 In total, the organization was responsible for the distribution of 14 kilograms of methamphetamine and 860 grams of heroin in the Northern District of Georgia.

 All of the defendants pleaded guilty to conspiracy to possess with intent to distribute controlled substances and were sentenced by U.S. District Judge Amy Totenberg as follows:

• Jesus Garcia Gutierez, 43, of Atlanta, Georgia, was sentenced to 15 years, six months in prison, consecutive to a state sentence, followed by five years of supervised release.
• Miguel Elorza, 32, of Atlanta, Georgia, was sentenced to 14 years in prison, served consecutive to a state sentence, followed by five years of supervised release.
• Anthony Bernard Jordan, 33, of Albany, Georgia, was sentenced to 10 years in prison followed by five years of supervised release.
• Nathaniel Jackson, 65, of Albany, Georgia, was sentenced to seven years, six months in prison followed by four years of supervised release.
• Tiffany Julian, 37, of Atlanta, Georgia, was sentenced to six years, six months in prison followed by three years of supervised release.
• Darrell White, 41, of Anniston, Alabama, was sentenced to six years, five months in prison followed by three years of supervised release.
• Christopher Butler, 37, of Atlanta, Georgia, was sentenced to six years, two months in prison followed by five years of supervised release.
• David Crider, Jr., 52, of Atlanta, Georgia, was sentenced to five years in prison followed by four years of supervised release.
• Jonathan Tyler Bryant, 30, of Atlanta, Georgia, was sentenced to four years in prison followed by five years of supervised release.
• Berenice Corea-Uriostegui, 28, of Atlanta, Georgia, was sentenced to three years, four months in prison followed by five years of supervised release.
• Larry Mosley, 46, of Albany, Georgia, was sentenced to three years in prison followed by five years of supervised release.
• Sheila M. Hardy, 51, of Albany, Georgia, was sentenced to two years, one month in prison followed by five years of supervised release.
• Quantavius Foster, 33, of Swainsboro, Georgia, was sentenced to one year, three months in prison followed by one year of supervised release.
• Joseph Brown, 58, of Villa Rica, Georgia, was sentenced to one year, one day in prison, followed by three years of supervised release.

 This case was investigated by the Drug Enforcement Administration and the Georgia Bureau of Investigation with valuable assistance provided by the Georgia State Patrol, Georgia Department of Corrections, Georgia Bureau of Investigation West Metro Regional Drug Enforcement Office, Douglas County Sheriff’s Office, Richmond County Sheriff’s Office, and the Doraville Police Department.

Assistant U.S. Attorney Bethany L. Rupert and former Assistant U.S. Attorney Nicholas Joy 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.gov.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6280. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

Rome, Ga. -- Nicholas Grindle was sentenced today for conspiracy to possess methamphetamine with the intent to distribute and bribery. During his sentencing hearing, Grindle was challenged for asking the Court for mercy based on false claims that he had been injured in combat during his military service. 
    
“Grindle violated his oath of office by smuggling drugs into a prison he swore to protect,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “He then compounded this crime by lying about his military service.”

“It’s alarming to think that this prison guard was brazen enough to distribute dangerous drugs and other contraband,” said Jae W. Chung, Acting Special Agent in Charge of the Atlanta Division. “He must now face the consequences.”

“The GDC does not tolerate actions of individuals who choose to bring discredit to the values of our agency and put their fellow officers at risk,” said Tyrone Oliver, Commissioner of the Georgia Department of Corrections.  “We appreciate the support of our federal partners in ensuring that justice will be served, and we are proud of those officers involved who were diligent in stopping further introduction of dangerous contraband into one of our facilities.”

According to Acting U.S. Attorney Moultrie, the charges, and other information presented in court: While employed as a guard at Hays State Prison, Grindle smuggled methamphetamine and other contraband to inmates for over a month in late 2023 and early 2024. Grindle was caught by fellow officers after they searched his locker and located methamphetamine, cell phones, and other contraband he planned to distribute within the prison. A review of his financial records also showed that he was receiving bribery payments from inmates to bring drugs and other contraband into the prison.

Grindle had previously deployed to Afghanistan while in the United States Army. During his sentencing hearing Grindle falsely told the Court that, while in Afghanistan, he had been stabbed in the shoulder by a Taliban fighter and killed the fighter with his pistol. A review of Grindle’s military records as well as multiple letters submitted to the Court by former members of his unit demonstrated that his claims of heroism and sustaining an injury in combat were false.

Grindle, 32, of Summerville, Georgia, was sentenced by United States District Judge William M. Ray, II, to 87 months of confinement, followed by three years of supervised release. Grindle was convicted on these charges on November 21, 2024, after he pleaded guilty.

This case was investigated by the Drug Enforcement Administration, the Georgia Department of Corrections Office of Professional Standards, and the Lookout Mountain, Georgia, Drug Task Force.

Assistant United States Attorney Calvin A. Leipold, III 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.gov.

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

ATLANTA - Johnny Narcisse, and his cousin Johnson Dieujuste, have been sentenced to prison for their scheme to defraud the Paycheck Protection Program (“PPP”) and Economic Injury Disaster Loan (“EIDL”) program of more than $2 million. 

“These defendants brazenly stole funds from programs designed to help individuals and businesses suffering during the COVID-19 pandemic,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “We are grateful to our law enforcement partners for identifying and investigating these individuals which led to their successful prosecution.”

According to Acting U.S. Attorney Moultrie, Jr., the charges and other information presented in court: In July 2021, federal agents investigating a Florida resident for suspected tax crimes obtained and executed a search warrant for the home, computer and cellular phone of Johnny Narcisse in Georgia. The search of the computer and phone revealed a large volume of evidence showing that Narcisse and his cousin, Johnson Dieujuste, had been engaged in an extensive conspiracy with each other to recruit small business owners and then file fraudulent applications for COVID-19 relief loans, including both PPP and EIDL loans, on their behalf.

Narcisse and Dieujuste, after obtaining the names, business names, and employer identification numbers from the would-be borrowers, simply invented the rest of the information needed to apply for the fraudulent loans. If the loan was approved, the borrowers kicked back a percentage of the loan proceeds to Narcisse and/or Dieujuste. Dozens of loans were applied for as part of the scheme, with over $2 million dispersed.

Johnny Narcisse, 46, of Atlanta, Georgia, was sentenced by U.S. District Judge Eleanor L. Ross to two years, four months in prison followed by three years of supervised release. He was also ordered to pay restitution in the amount of $2,000,332. Narcisse was convicted on October 21, 2024, after he pleaded guilty to one count of conspiracy to commit wire fraud.

Johnson Dieujuste, 37, of Loganville, Georgia, was sentenced by Judge Ross on January 8, 2025, to two years, eight months in prison followed by three years of supervised release. He was also ordered to pay restitution in the amount of $2,081,559. Dieujuste was convicted on September 24, 2024, after he pleaded guilty to one count of conspiracy to commit wire fraud.

In addition to their conspiracy to file fraudulent loan applications on behalf of others, the evidence showed that Narcisse and Diejuste each independently filed for fraudulent COVID-19 loans for themselves. Both men were held accountable for those loans as well during the sentencing process, and the losses that resulted from this additional conduct were included in each defendant’s restitution order.

This case was investigated by the U.S. Treasury Inspector General for Tax Administration and Small Business Administration, Office of Inspector General.

Assistant U.S Attorney Alana R. Black, and Trial Attorneys Jennifer Bilinkas and David A. Peters of the Department of Justice Criminal Division’s Fraud Section, prosecuted the case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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 U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Gilberto Contreras has pleaded guilty to possessing with intent to distribute nearly 1,000 pounds of methamphetamine. 

“Contreras distributed massive quantities of dangerous drugs that posed a significant threat to the health and safety of our communities,” said Acting U.S. Attorney Richard S. Moultrie, Jr.  “Our office is grateful for the diligent work of our federal and local law enforcement partners who work tirelessly to remove these poisons from our streets and to hold accountable those who peddle them.”

“This case represents the continued commitment of the DEA to identify and hold accountable those who engage in the distribution of dangerous drugs, such as methamphetamine,” said Jae Chung, Acting Special Agent in Charge of the DEA Atlanta Division.

According to Acting U.S. Attorney Moultrie, the charges and other information presented in court: On July 2, 2024, DEA special agents received information about a local methamphetamine trafficker with multiple kilograms of methamphetamine for sale.  The investigation led agents to a parking lot in Clayton County, Georgia, where the agents encountered Contreras.  Law enforcement stopped Contreras’s vehicle a short time later and located a black trash bag containing approximately 44 pounds of methamphetamine.  Agents then searched Contreras’s residence and backyard in Ellenwood, Georgia and located approximately 915 pounds of methamphetamine and $40,000 in cash.

Gilberto Contreras, 54, of Ellenwood, Georgia, is scheduled to be sentenced on May 13, 2025, at 2:00 p.m. before U.S. District Judge Thomas W. Thrash, Jr.

This case is being investigated by the Drug Enforcement Administration with valuable assistance provided by the Clayton County Police Department.

Assistant U.S. Attorney Dwayne A. Brown, Jr. is prosecuting the case.

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

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

ATLANTA – Acting U.S. Attorney Richard S. Moultrie, Jr. announced that the Northern District of Georgia was responsible for collections and forfeitures of more than $72 million in Fiscal Year 2024.

“Obtaining financial justice for victims of crime and United States taxpayers is a high priority for this District,” said Acting U.S. Attorney Richard S. Moultrie, Jr.  “These results for Fiscal Year 2024 reflect our commitment to leverage both criminal and civil enforcements to recuperate money for crime victims and the public through all available legal resources.”

During Fiscal Year 2024, our office collected more than $36 million through the district’s Financial Litigation Program, which is responsible for the collection of civil and criminal debts, fines, and monetary penalties due to victims of crime and the United States.  Specifically, our office obtained over $14 million in restitution, fines and/or assessments imposed against defendants in criminal cases.  Federal law requires that defendants who commit certain crimes pay restitution to the victims of those crimes. Criminal fines and assessments paid by defendants go to the Department of Justice’s Crime Victims Fund, which distributes the funds to federal and state victim compensation and victim assistance programs.

We also collected more than $21 million in affirmative civil enforcement cases.  The United States initiates affirmative civil enforcement cases to recover government money lost to fraud or other misconduct, or to collect fines imposed on individuals and/or corporations for violations of federal health care, safety, or environmental laws and controlled substance regulations, among other laws.

In addition, the district deposited over $36 million into the Department of Justice’s Asset Forfeiture Fund and the Department of Treasury and Department of Homeland Security’s Forfeiture Fund through civil and criminal forfeiture actions handled by the office’s Money Laundering and Asset Recovery Section.  Of the total amount forfeited, over $21 million was forfeited in civil forfeiture cases and more than $14 million was forfeited in criminal cases.  The Department of Justice uses forfeited property to compensate crime victims as well as for a variety of other law enforcement purposes, and shares these proceeds with federal, state and local law enforcement partners.  In Fiscal Year 2024, more than $1 million was returned to crime victims and over $3 million was shared with the district’s law enforcement partners.

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 U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Following an eight-day trial, Tiffany Brown was found guilty by a jury of defrauding the Federal Emergency Management Agency (“FEMA”) in connection with a nearly $156 million contract she was awarded to provide self-heating meals to the residents of Puerto Rico in the aftermath of Hurricane Maria, and for fraudulently obtaining $700,000 in litigation advances from the Litigation Funding Group of Georgia (“LFG”) by falsely claiming that she had settled with a logistics company who failed to deliver the meals to FEMA. 

“Brown resorted to extraordinary lengths to defraud FEMA during a critical period when individuals were in desperate need of food resources during the devastating aftermath of Hurricane Maria,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “Our Office, along with our law enforcement partners, will remain vigilant in pursuing and prosecuting individuals who exploit the devastation caused by natural disasters as an opportunity to commit fraud.”

“We will continue to investigate and support the prosecution of fraudsters who target vulnerable populations for their own gains,” said DHS Inspector General Joseph V. Cuffari, Ph.D.

“Brown greedily deceived the federal government during a natural disaster to enrich herself,” said Sean Burke, Acting Special Agent in Charge of FBI Atlanta. “The FBI and our partners will aggressively pursue any person who seeks to defraud the government, especially during times of tragedy.”

According to Acting U.S. Attorney Moultrie, the charges and other information presented in court: On September 20, 2017, Hurricane Maria made landfall as a Category 4 hurricane in Puerto Rico. In its wake, FEMA issued a solicitation for 40 million self-heating meals per week to deliver to the island. Meals requiring a microwave or an external heating source, such as for boiling water, were unacceptable. FEMA issued the meal solicitation because it had exhausted its existing supply of self-heating meals from its own warehouses, primary vendors, and federal agency partners in responding to Hurricanes Harvey and Irma— both Category 4 hurricanes that impacted broad swaths of Texas, Louisiana, and the U.S. Virgin Islands.

On September 28, 2017, Brown submitted a proposal to FEMA falsely representing that her Georgia-based company, Tribute Contracting LLC, could provide the necessary self-heating meals. In doing so, Brown misrepresented that Tribute: (a) could deliver 10 million meals per day utilizing 210 trucks; (b) would provide 300,000 meals prepositioned; and (c) had partnered with C.H. Robinson, a major shipping and logistics broker, to meet FEMA’s delivery requirements.

But Tribute was incapable of delivering 10 million meals, never prepositioned any meals, and did not have the claimed partnership. A FEMA contacting officer spoke with Brown after receiving Tribute’s proposal. The contracting officer knew that U.S.-based manufacturers could not produce the number of meals that Brown claimed in her proposal. In response, Brown falsely represented that she was procuring the self-heating meals from Action Meals, a Canadian manufacturer. Brown sent FEMA a doctored image of an Action Meals package with a fraudulent expiration date.

Based on her conversation with the contracting officer, Brown submitted a revised proposal falsely representing that she had firm confirmation from her “core suppliers for 30 million self-heating meals in 30 days” and that she could begin delivering one million meals a day beginning on October 7, 2017.

On October 3, 2017, FEMA awarded Tribute and Brown a $155,982,000 contract requiring the delivery of 30 million self-heating meals between October 7 and October 23, 2017. FEMA had to confirm that Tribute’s proposed meal was “technically acceptable” before approving the delivery. FEMA approved Brown’s proposal in part because it understood that Brown would deliver self-heating meals manufactured by Action Meals. Unbeknownst to FEMA, Brown had not secured a supplier when she was awarded the FEMA contract. After being awarded the contract, Brown repeatedly mispresented to FEMA the status of her suppliers and timing of deliveries.

On October 19, 2017, FEMA terminated its contract with Brown and Tribute. Before doing so, however, FEMA paid Brown $255,000 based on her submission of fraudulent invoices and bills of ladings claiming that she had successfully delivered 50,000 self-heating meals. Brown in fact had delivered 50,000 non-compliant, dehydrated meals. After FEMA terminated the contract, Brown continued making false representations to FEMA. For example, Brown submitted fraudulent invoices in December 2017 and June 2019 claiming to have purchased tens of thousands of dollars of heaters.

In March 2019, Brown falsely represented to LFG that she had a tentative $5 million settlement with a logistics company, Total Quality Logistics (“TQL”). Brown claimed that TQL was willing to settle with her because it failed to timely deliver meals to FEMA, which she claimed was the reason FEMA terminated her contract. In truth, TQL obtained a default judgment against Brown for unpaid deliveries.

To secure the fraudulent litigation financing, Brown provided LFG with a mix of actual and fabricated documents. For instance, she provided the real FEMA contract, but a fraudulent tentative settlement agreement, and fabricated emails between TQL’s general counsel and “Jerry Rosenstein,” Tribute’s purported in-house counsel. Brown further perpetrated the fraud by using her attorney to create the illusion that she was a successful government contractor who was negotiating directly with TQL. Brown later falsely claimed she settled with TQL for $6.5 million, which she evidenced by an agreement that TQL’s CEO supposedly signed. The scheme unraveled when TQL did not pay the $6.5 million, and Brown’s attorney received an email from a “James Wilson,” who was supposedly an in-house attorney at TQL. “James Wilson” wrote that he was willing to release the settlement funds in exchange for $500,000. Investigators later determined that Brown was responsible for creating the fake “Jerry Rosenstein” and “James Wilson” personas.   

Tiffany Brown, 45, of Atlanta, Georgia is scheduled to be sentenced on April 22, 2025, at 10:00 a.m. by U.S. District Judge Thomas W. Thrash, Jr.  Brown was found guilty by a federal jury on January 17, 2025, of 11 counts of major disaster fraud, 17 counts of wire fraud, one count of theft of government money, and three counts of money laundering.

This case is being investigated by the U.S. Department of Homeland Security, Office of Inspector General, and the Federal Bureau of Investigation, with valuable assistance from the Federal Emergency Management Agency’s Office of Chief Counsel.

Assistant U.S. Attorneys Alex R. Sistla and Jessica C. Morris 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 U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA – Milan Patel has been sentenced to prison in connection with a years-long market manipulation scheme in which he and his co-conspirators conceived, drafted, and disseminated false rumors about publicly traded companies and then profitably traded on these rumors by purchasing and selling mainly short-term call options.

“The defendants used their financial acumen to manipulate the securities markets by releasing false information about publicly traded companies,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “Our Office is committed to working with our law enforcement partners to investigate and prosecute all forms of securities fraud.”

“These sentencings should serve as a reminder to anyone attempting to tilt the balance of financial markets in their direction using insider trading, investigating this illegal behavior is a top priority of the FBI and you will be held accountable,” said Sean Burke, Acting Special Agent in Charge of FBI Atlanta.

According to Acting U.S. Attorney Moultrie, the charges and other information presented in court: Between approximately October 2017 and January 2020, Milan Patel, Bart Ross, Mark Melnick, Anthony Salandra, and Charles Parrino conspired to trade securities—primarily short-term call options—in large, publicly traded companies based on materially false rumors about those companies that they generated and disseminated. These materially false rumors were intended to increase the price of the securities (both the underlying stock and options).

Call options are essentially a contract that gives the options’ holder the right, but not the obligation, to buy shares of the underlying stock at a set price per share—the option’s strike price—on or before a set future date (the option’s expiration date). Generally, the holder of a call option benefits when the price of the underlying stock increases. Short-term call options are ones that generally expire within a week.

Ross, Salandra, and Parrino, were formerly registered brokers with the Financial Industry Regulatory Authority (FINRA) and were responsible for drafting some of the fraudulent rumors. The conspirators would often refine a proposed rumor by exchanging drafts among themselves using the Trillian instant messaging application.

Melnick was a day trader and T3 Live Senior Trading Strategist who often provided technical evaluations on whether a particular false rumor would be successful. These rumors were carefully crafted to: (a) appear plausible enough to other market participants to move the price of the underlying security; and (b) move the price of the security in a particular direction—namely move the stock or option price up—so that Patel and the other conspirators could profitably trade on the rumors.

Patel was responsible for disseminating the rumor via Trillian to multiple accounts, which would in turn result in the false rumor being distributed over one or more market subscription services, including Trade The News, TradeXchange, and Benzinga, as well as various Twitter accounts.

Before Patel disseminated the rumor, the co-conspirators would acquire a position in the publicly traded company that was the subject of the rumor. The co-conspirators purchased short-term call options often mere seconds before Patel disseminated the rumor. The conspirators often purchased short-term call options because the price of such options is more sensitive than the price of the underlying stock. The conspirators profited from their scheme by selling the options (or other securities) after they increased in price. They would then sell off their positions shortly after the rumor was disseminated and the price of the option or underlying stock had increased.

In total, the defendants executed more than 500 trades and made $2,651,320 in profits as a result of their fraudulent scheme.

U.S. District Judge Leigh Martin May sentenced the defendants in the case as follows:

•Milan Patel, 49, of Cumming, Georgia, was sentenced on January 23, 2025, to 18 months in prison followed by three years of supervised release. He was also ordered to pay a $10,000 fine. Patel was convicted on August 20, 2024, after he pleaded guilty to conspiracy to commit securities fraud.

•Charles Parrino, 59, of West Palm Beach, Florida, was sentenced on January 17, 2025, to one year and one day in prison followed by three years of supervised release. He was also ordered to pay a $10,000 fine. Parrino was convicted on September 27, 2022, after he pleaded guilty to conspiracy to commit securities and wire fraud.

•Mark Melnick, 44, of Marlboro, New Jersey, was sentenced on December 18, 2024, to three years’ probation with the first six months to be served on home confinement. He was also ordered to pay a $4,000 fine. Melnick was convicted on September 21, 2021, after he pleaded guilty to conspiracy to commit securities and wire fraud.

•Anthony Salandra, 60, of Delray Beach, Florida, was sentenced on December 5, 2024, to three years’ probation with the first six months to be served on home confinement. Salandra was convicted on April 11, 2022, after he pleaded guilty to conspiracy to commit securities and wire fraud.

•Bart Ross, 60, of Atlanta, Georgia, was sentenced on September 7, 2022, to three years’ probation. Ross was convicted on December 18, 2020, after he pleaded guilty to conspiracy to commit securities and wire fraud.

This case was investigated by the Federal Bureau of Investigation with assistance from the Securities and Exchange Commission.

Assistant U.S. Attorney Alex R. Sistla prosecuted the case.

The SEC is investigating potential civil violations of the U.S. securities laws relating to above-described scheme. In connection with its investigation, the SEC filed separate civil enforcement actions against Patel, Parrino, Melnick, Salandra, and Ross in the U.S. District Court for the Northern District of Georgia.

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 U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA – Dr. Kamal Kabakibou and his medical practice, Kamal Kabakibou, M.D., P.C., doing business as “The Center for Pain Management,” have settled claims under the False Claims Act (“FCA”) and the Controlled Substances Act (“CSA”) arising from their alleged billing for medically unnecessary testing and for pre-signing opioid prescriptions to be dispensed by a nurse practitioner while Dr. Kabakibou was out of the country.  As part of the settlement, they will jointly pay $3.5 million to the United States and have agreed to submit regular monitoring reports to the Drug Enforcement Administration for the next five years.  Dr. Kabakibou and his medical practice have also entered into a three-year integrity agreement with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), which includes an annual claims review by an independent review organization.

“Our office will continue to insist that dangerous opioids be properly dispensed and that federal healthcare dollars be wisely spent,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “On behalf of those healthcare providers who correctly bill for medical procedures, and for the patients who rely on the safety net of federal healthcare programs, our office will continue to work vigorously with our federal agencies and law enforcement partners to identify and hold accountable those providers who engage in misconduct.”

“Health care professionals are entrusted with accurately billing federal health care programs and prescribing controlled substances responsibly,” said Special Agent in Charge Kelly J. Blackmon of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG remains committed to collaborating with our law enforcement partners to hold accountable those who engage in fraud schemes that exploit federal health care programs and jeopardize patient safety.”

“Medical providers who submit false claims to the U.S. Department of Labor’s (DOL) Office of Workers’ Compensation Programs (OWCP) for medically unnecessary services place illegal profits above patient safety,” said Mathew Broadhurst, Special Agent-in-Charge, Southeast Region, U.S. Department of Labor Office of Inspector General.  “We will continue to work with our law enforcement partners and OWCP to protect the integrity of DOL’s worker compensation programs.”

“This settlement should serve as a strong deterrent to healthcare practitioners who abandon their Hippocratic Oath while seeking to exploit and defraud TRICARE, the military healthcare system relied on by our servicemembers, retired military members, and their families,” said Special Agent in Charge Jason Sargenski, Department of Defense, Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “DCIS, alongside our law enforcement partners, will continue to aggressively investigate allegations of healthcare fraud that affect the Department of Defense and put its personnel at risk.”

“Dr. Kamal Kabakibou had a responsibility to issue controlled substance prescriptions for a legitimate medical purpose, while acting in the usual course of his professional practice, in order to prevent the diversion of dangerous prescription drugs, especially opioids,” said Jae Chung, Acting Special Agent in Charge of the DEA Atlanta Division. “The moment he decided to carelessly distribute drugs and ignore his corresponding responsibility, he became nothing more than a dangerous drug trafficker.”

“Medicare beneficiaries should never have to question whether treatment recommendations are based on their doctors’ best financial interests rather than their best medical advice,” said FBI Atlanta Acting Special Agent in Charge Sean Burke. “This case is further proof that the government will vigorously pursue those who attempt to cheat the taxpayer-funded system that pays for medical care for millions of Americans.”

Dr. Kabakibou operates pain-management clinics in Atlanta and Blue Ridge, Georgia. The clinics use an in-house laboratory to conduct urine drug tests. The government alleges that Dr. Kabakibou performed medically unnecessary and duplicative laboratory testing on patients and submitted claims for those tests to federal health insurance (including Medicare, TRICARE, and the Department of Labor). The government further alleges that when Dr. Kabakibou travelled abroad, which he did regularly, he pre-signed prescriptions and left them for his nurse practitioners to dispense. Many of these prescriptions were for Schedule II controlled substances, including opioids, which could not be dispensed by unsupervised nurse practitioners.

The CSA was enacted by Congress to deter the illegal importation, manufacture, distribution, possession, and improper use of controlled substances, including prescription medications. The CSA prohibits DEA registrants from issuing prescriptions outside the usual course of professional practice. State law prohibited pre-signing prescriptions. DEA registrants who issue improper prescriptions are subject to civil monetary penalties for each violation.

The case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Department of Health and Human Services, Office of the Inspector General, the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, the Federal Bureau of Investigation, the Drug Enforcement Administration and the U.S. Department of Labor, Office of the Inspector General.

The civil settlement was reached by Assistant U.S. Attorney Anthony DeCinque. The civil case was also investigated by former Assistant U.S. Attorney David O’Neal.

The claims resolved by the settlement are allegations only, and there has been no determination of liability.

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

 

ATLANTA - Arden McCann has been sentenced to 30 years in federal prison for his role in operating an international narcotics distribution ring over the dark web where millions of counterfeit Xanax pills were imported and sold to customers in the United States.

“Counterfeit pill production and distribution continues to pose a grave threat to public safety, especially when trafficked anonymously using dark web marketplaces,” said Acting U.S. Attorney Richard S. Moultrie, Jr.  “Due to the diligent investigative efforts of our state, federal, and foreign law enforcement partners, McCann’s illegal drug operation has been dismantled.”

“Arden McCann’s actions put profits before public health and safety,” said Jae Chung, Acting Special Agent in Charge of the DEA Atlanta Division. “DEA will continue to make sure those who hide behind a keyboard and use the dark web to profit off lives are held accountable.”

“This country is in the midst of a catastrophic overdose epidemic where the threat from synthetic opioids disguised as fake prescription medication is extremely high. The FBI will do whatever is necessary to hold criminals who sell counterfeit drugs accountable,” said Sean Burke, Acting Special Agent in Charge of FBI Atlanta. “This sentencing is a testament to the great law enforcement collaboration by agencies here in Georgia, as well as nationally and internationally.”

“McCann’s sentencing sends a clear message that drug trafficking and the devastation it brings to our communities will not be tolerated. We remain committed to holding those accountable who distribute this poison and threaten public safety,” said Steven N. Schrank, Special Agent in Charge of HSI Atlanta, which covers Georgia and Alabama. “Our office will continue working alongside our law enforcement partners to disrupt these dangerous networks and protect the well-being of our citizens.”

“This drug trafficking investigation required significant coordination from multiple federal, state and local law enforcement agencies along with our international partners to identify and interrupt the distribution of these dangerous drugs,” said Jason Krizmanich, Acting Inspector in Charge of the Atlanta Division. “Postal Inspectors will continue to pursue anyone who illegally utilize the mail system.”  

“The issue of fentanyl and illicit opioids remains a top concern for the Royal Canadian Mounted Police (RCMP), and we remain committed to collaborating with our international law enforcement partners to actively pursue the criminal networks that are fueling this public health epidemic,” said Superintendent Marie Eve Lavallée, Assistant Criminal Operations Officer, Organized Crime Program, RCMP Federal Policing – Eastern Region

According to Acting U.S. Attorney Moultrie, the charges and other information presented in court: In October 2015, McCann was arrested by the Laval (Quebec, Canada) Police after he was identified as selling drugs on the dark web using the moniker “DRXanax.”  As part of that investigation, Canadian authorities seized approximately two million counterfeit Xanax pills, five pill presses, alprazolam powder, 3,000 MDMA pills, over $200,000 in cash, 15 firearms, ballistic vests, and drug ledgers. The drug ledgers revealed McCann and others purchased alprazolam from China, pressed the alprazolam into counterfeit Xanax pills, then sold the pills to customers throughout the United States.

Despite his arrest, McCann continued to operate on the dark web to sell narcotics, including fentanyl analogues.  A subsequent investigation by U.S. law enforcement revealed that from at least November 2015 to February 2020, McCann operated numerous vendor pages on over ten marketplaces on the dark web.  The investigation also revealed that McCann, who used various monikers, was one of the largest drug vendors on the dark web between 2015 and 2020, distributing drugs to 49 states and generating more than $10 million dollars of revenue.

McCann was arrested by Canadian authorities on February 26, 2020, on the charges from the Northern District of Georgia, and was extradited to the United States on June 9, 2022.

Arden McCann, 37, of Quebec, Canada, was sentenced by U.S. District Judge J.P. Boulee to 30 years in prison followed by 10 years of supervised release. He was also fined $1 million dollars.  McCann was convicted of drug importation and money laundering conspiracies on September 23, 2023, after he pleaded guilty. 

This case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Food and Drug Administration, Homeland Security Investigations, the United States Postal Inspection Service and the Internal Revenue Service Criminal Investigation, with invaluable assistance provided by the Royal Canadian Mounted Police.

Assistant U.S. Attorney C. Brock Brockington and former Assistant U.S. Attorneys Tal Chaiken and Nick Hartigan prosecuted the case. Trial Attorneys from the Office of International Affairs also provided assistance in this case.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

ATLANTA – C.R. Bard, Inc. (“Bard”) and its affiliates, Liberator Medical Supply, Inc., Liberator Holdings and Rochester Medical Corporation (collectively the “Liberator Defendants”), have agreed to pay $17 million to resolve allegations that they violated the False Claims Act and various state false claims act statutes by providing free samples and discounts to encourage urology practice groups to use Bard’s prescription form for prescribing intermittent catheters for their patients.

“The use of inducements to influence a physician’s medical decisions undermines the important physician-patient relationship and interferes with the goal of doing what is best for the patient,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “Our office will coordinate with our federal and state partners to hold accountable those companies who violate federal law for financial gain.”

“Patients should be able to trust the recommendations they receive from their physician are what’s best for their health, not what’s financially beneficial to another provider,” said Georgia Attorney General Chris Carr. “We’re committed to putting a stop to any type of fraud or abuse within our healthcare system while protecting taxpayer dollars no matter the amount.”

“Kickback schemes undermine the trust patients place in our health care system,” said Special Agent in Charge Kelly J. Blackmon of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Our office will continue to collaborate with our law enforcement partners to safeguard federal health care programs.”

“Illegal kickbacks in any form pervert our health care system, which is designed to ensure that health care providers make decisions based solely on what is best for the patient,” said Sean Burke, Acting Special Agent in Charge of FBI Atlanta.  “This settlement is part of the FBI and our partners’ on-going effort to eliminate the payment of illegal kickbacks to health care providers.”

“This settlement sends a strong message to healthcare practitioners who blatantly disregard patient-centered care for their own personal enrichment and potentially harm TRICARE, the military healthcare system relied on by our servicemembers, retired military members, and their families,” said Special Agent in Charge Jason Sargenski, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office.  “DCIS, alongside our law enforcement partners, will continue to aggressively investigate allegations of healthcare fraud that affect the Department of Defense and put our personnel at risk.”

The Government alleges that, between 2016 and February 2020, the Liberator Defendants provided discounts, excessive free samples, and cost savings for in-office supplies to urology practice groups to persuade those practice groups to use Bard’s own “Link” prescription form to prescribe intermittent catheters to their patients. The provision of remuneration – anything of value – to induce a physician to prescribe certain devices over others is prohibited by the Anti-Kickback Statute, 42 U.S.C. § 1320a-7b.

Bard began marketing intermittent catheters in 2013, after it acquired Rochester Medical, Inc., a developer and supplier of urological products.  Intermittent catheters are single-use catheters provided to persons suffering from urinary retention to drain the bladder several times a day. They are typically prescribed by the patient’s physician.  The patient then takes the prescription to a medical equipment supplier (“DME supplier”) to purchase the intermittent catheters.

The Government alleges that soon after the acquisition of Rochester, Bard sales representatives began leveraging discounts on and free samples of in-office urological products to convince urology practice groups to make Bard’s “Link” prescription form – which listed the various Bard intermittent catheters – the standard catheter prescription form for its group.  The patients would then take the Link prescription to a DME supplier to purchase the catheters.

Two years later, Bard announced its acquisition of Liberator Medical and Liberator Holdings to create its own medical equipment subsidiary for the sale of intermittent catheters directly to Medicare and Medicaid beneficiaries.  The Government alleges that after this acquisition, Bard used the Link prescription form to encourage urology practices to prescribe intermittent catheters through Liberator Medical rather than other DME suppliers.

The settlement resolves allegations filed by Dirk Etheridge, a former employee of 180 Medical, under the qui tam, or whistleblower, provisions of the False Claims Act, which authorizes private parties to sue for false claims on behalf of the United States and share in the recovery.  The lawsuit was filed in the Northern District of Georgia and is captioned United States, ex rel. Dirk Etheridge, et al. v. Liberator Medical Holdings, Inc., et al., No 1:17-cv-05187-LMM (N.D. Ga.).  Mr. Etheridge will receive a share of the settlement.

The U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Department of Health & Human Services Office of Inspector General, the Federal Bureau of Investigation, the Department of Defense Office of Inspector General, Defense Criminal Investigative Service, and the Georgia State Attorney General’s Medicaid Fraud Division investigated this case.

The civil settlement was reached by Assistant U.S. Attorney Neeli Ben-David, former Assistant U.S. Attorney Akash Desai, and Georgia State Assistant Attorney General Sara Vann.

The claims resolved by the settlement are allegations only, and there has been no determination of liability.

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

ATLANTA - Craig Allen, executive officer of C.M. Allen Capital Management, Inc., has been sentenced to seven years in federal prison for operating an investment scheme involving a private fund called “the Cheetah Fund,” which defrauded dozens of investors of more than $9 million.

“Allen lied to investors when he sent them account documents that intentionally inflated the Cheetah Fund’s performance,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “Allen abused the investors’ trust by failing to invest their money as promised and diverting these funds to maintain his lifestyle. For some victims, these stolen funds comprised their life savings.”

“While it is easy to dismiss financial fraud cases as being almost benign because of their lack of violence, there is however, a very real victimization felt and lives are changed forever,” said Sean Burke, Acting Special Agent in Charge of FBI Atlanta.  “The FBI is hopeful that Allen’s sentencing will send a strong message to anyone who would try to take advantage of unsuspecting investors for their own personal greed.”

According to Acting U.S. Attorney Moultrie, the charges, and other information presented in court: Allen, the sole shareholder and executive officer of C.M. Allen Capital Management, Inc., defrauded dozens of investors across the country out of millions of dollars through his management of the Cheetah Fund. In his roles with C.M. Allen Capital Management, Allen was responsible for managing Cheetah and its investment portfolio. Prospective investors received tear sheets that reported Cheetah achieved annual investment returns as high as 73%. Once invested in Cheetah, investors received fraudulent monthly account statements showing false investment gains, and fake tax documents reporting the false gains. In reality, Allen reported gains even as the Fund continuously lost money.

In addition, Allen at times used investors’ money to write checks payable to himself to fund his lifestyle. Cheetah investors lost more than $9 million due to Allen’s investment fraud scheme.

Craig Allen, 53, of Atlanta, Georgia, was sentenced by U.S. District Judge Thomas W. Thrash, Jr. to seven years, two months in prison followed by three years of supervised release. He was also ordered to pay restitution in the amount of $9.2 million to the victims.

This case was investigated by the Federal Bureau of Investigation. The SEC provided valuable assistance. The SEC’s separate civil case is SEC v. Craig Allen, Case Number 1:24-cv-01771-SDG.

Assistant U.S. Attorney Natasha Cooper and former Assistant U.S. Attorney Christopher J. Huber prosecuted the case.

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

ATLANTA – First Assistant U.S. Attorney Richard S. Moultrie, Jr. has succeeded U.S. Attorney Ryan K. Buchanan as the Acting U.S. Attorney for the Northern District of Georgia, effective January 20, 2024, at 12:00 a.m., pursuant to the Federal Vacancies Reform Act, 5 U.S.C § 3345.

“Richard S. Moultrie, Jr. is an accomplished trial lawyer and a career prosecutor who lives the mission of the Department of Justice,” said Mr. Ryan K. Buchanan. “Additionally, he is a capable and experienced leader who has the trust and faith of the public servants of the United States Attorney’s Office, our law enforcement partners, and our community stakeholders. He is a worthy steward of the leadership of this office, and he will work tirelessly to keep the people of the district safe, to uphold the rule of law, and to protect civil rights. As a resident of the Northern District of Georgia, I look forward to his service as Acting United States Attorney.”

“It has been an incredible privilege to work side-by-side with U.S. Attorney Buchanan as the District’s First Assistant U.S. Attorney,” said Mr. Moultrie. “Along with the dedicated and talented attorney, administrative, and legal support staff of our office, I will steadfastly continue our District’s mission to prosecute federal crimes, seek justice on behalf of victims and their families, represent the interests of the United States and its agencies in civil litigation, and maintain our robust relationships with law enforcement partners and community stakeholders.”

Mr. Moultrie has extensive experience in handling complex, high-profile matters in federal court. He formerly served as Chief of the Office’s Violent Crime & National Security Section. A member of the American College of Trial Lawyers, he is also the previous recipient of the U.S. Attorney General’s Distinguished Service Award and the Executive Office of U.S. Attorneys Director’s Award for Superior Performance.

Mr. Moultrie received his Juris Doctor from the University of Texas at the Austin School of Law and a Bachelor of Arts from Morehouse College.

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 U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Boeroepae Jordan has been sentenced to a new term in prison for defrauding the Paycheck Protection Program (“PPP”) and Economic Injury Disaster Loan (“EIDL”) program of more than $323,000, less than a year after being released from federal prison for firearms and drug crimes. 

“Jordan quickly returned to his criminal activity after his release from prison, this time committing fraud to obtain money intended to help individuals and businesses who were suffering from the COVID-19 pandemic,” said U.S. Attorney Ryan K. Buchanan. “This case demonstrates our continuing resolve to identify and prosecute individuals who wrongfully exploited the pandemic relief programs.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: On September 9, 2019, Jordan completed a 72-month federal prison sentence for possession of a firearm by a prohibited person and possession of a firearm during a drug trafficking crime and began a six-year term of supervised release. On April 5, 2020, Jordan applied to the U.S. Small Business Administration (“SBA”) for an EIDL advance of $5,000, claiming he owned a business named A/E Multi-Diamond Entertainment Incorporated which had five employees. In reality, the business existed in name only and had no employees. Jordan requested the funds be deposited into a business bank account that he arranged for a family member to open, claiming that the family member owned the business. The SBA then deposited the $5,000 into the bank account.

The following month, Jordan applied for an SBA-guaranteed PPP loan of $291,250 for the same fake business. Jordan claimed he had 18 employees and needed the loan to continue providing payroll during the pandemic. Jordan supported the application by providing fake IRS documents and altered bank statements. Jordan received the loan into his bank account on May 20, 2020, and immediately began withdrawing cash and spending large amounts of the money at restaurants, retail stores, nail salons, and furniture stores. By July 31, 2020, less than $5,000 of the loan funds was left in the account. Jordan caused an overall loss to the SBA of $323,433.31.

Boeroepae Jordan, 51, of Atlanta, Georgia, was sentenced to three years, five months in prison to be followed by three years of supervised release. He was also ordered to pay restitution to the U.S. Small Business Administration in the amount of $323,433.31. Jordan was convicted on October 10, 2024, after he pleaded guilty to two counts of wire fraud.

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

Assistant U.S. Attorneys Garrett L. Bradford and Erin N. Spritzer prosecuted the case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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 U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.