Northern District of Georgia

ATLANTA - Sanjay Patel, an attorney who formerly operated a Georgia-based real estate law firm, has pleaded guilty to fraudulently obtaining nearly $300,000 in Economic Injury Disaster Loans (EIDL) during the COVID-19 pandemic, and to using his attorney escrow account to launder more than $250,000 from unrelated investor fraud schemes.

“This office will remain steadfast in coordinating with our federal law enforcement partners to identify and hold accountable those who defrauded the government’s COVID relief programs,” said U.S. Attorney Ryan K. Buchanan. “It is especially aggravating that Patel, an attorney, not only used his professional standing to commit money laundering, but he also defrauded the American taxpayer out of hundreds of thousands of dollars.”

“The U.S. Postal Inspection Service will continue to ensure fraudsters who sought to enrich themselves with funds from pandemic-assistance programs are held accountable,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “This case serves as a reminder to individuals that engage in unlawful activity that law enforcement will spare no resource to bring you to justice for your criminal activity.”

 “This guilty plea is a testament to our commitment to holding accountable those who engage in financial fraud,” said Edwin S. Bonano, Special Agent in Charge of FHFA-OIG’s Southeast Region.

“Even after four years, the FBI and our partners will continue to seek out anyone who abused their positions to defraud the government during the COVID-19 pandemic,” said Keri Farley, Special Agent in Charge of FBI Atlanta.  “This plea proves that no matter how much time has passed, if you commit financial crimes and steal from American taxpayers, you will be held accountable.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: Between August 2020 and March 2021, Patel submitted four fraudulent EIDL loan applications to the Small Business Administration (SBA) seeking at least $421,000 to purportedly operate his business, including his law practice, Worden & Associates.

In the fraudulent applications, Patel repeatedly misrepresented the number of employees his law firm employed, its gross revenues, and in at least one application, the existence of his business. In reliance on Patel’s fraudulent misrepresentations, the SBA funded two of his loans totaling approximately $300,000.

After receiving the loan proceeds, Patel misused the funds for unauthorized purposes. EIDL loans are intended to be used for a business’s working capital to make regular payments for operating expenses, including payroll, rent/mortgage, utilities, and other ordinary business expenses, as well as to pay business debt incurred at any time. But Patel spent the fraudulent EIDL loan proceeds he received on various things, including spending the funds at casinos, personal expenses, and to make payments toward non-business loans.  

Separately, Patel used his Interest on Lawyer Trust Account (IOLTA) to launder the proceeds from various investment frauds. For example, on May 14, 2020, Patel received $350,000 from an investor who believed the funds were going to be used for an energy project. But after receiving those funds, Patel immediately wired $250,000 to another entity, unrelated to the investment. Similarly, in June 2020, Patel received another $350,000 as part of a different energy investment. After receiving this investor money, Patel laundered over $132,000 by conducting a series of wire transfers to other accounts unrelated to the investment. Although Patel was not involved in the underlying fraudulent activity, he knew that these funds were derived from various investor fraud schemes.

Sanjay Patel, 45, of Mobile, Alabama, is scheduled to be sentenced on December 12, 2024, at 3:00 p.m. before U.S. District Judge Steve C. Jones.

This case is being investigated by the United States Postal Inspection Service, Federal Bureau of Investigation, Federal Housing Finance Agency - Office of Inspector General, and Federal Deposit Insurance Corporation - Office of Inspector General.

Assistant U.S. Attorney Alex R. Sistla is prosecuting 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 – Song Wu, a Chinese national, has been indicted on charges for wire fraud and aggravated identity theft arising from his efforts to fraudulently obtain computer software and source code created by the National Aeronautics and Space Administration (“NASA”), research universities, and private companies.

“Efforts to obtain our nation’s valuable research software pose a grave threat to our national security,” said U.S. Attorney Ryan K. Buchanan. “However, this indictment demonstrates that borders are not barriers to prosecuting bad actors who threaten our national security.”

“Once again, the FBI and our partners have demonstrated that cyber criminals around the world who are seeking to steal our companies’ most sensitive and valuable information can and will be exposed and held accountable,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “As this indictment shows, the FBI is committed to pursuing the arrest and prosecution of anyone who engages in illegal and deceptive practices to steal protected information.”

According to U.S. Attorney Buchanan, the indictment, and other information presented in court: Song allegedly engaged in a multi-year “spear phishing” email campaign in which he created email accounts to impersonate U.S.-based researchers and engineers and then used those imposter accounts to obtain specialized restricted or proprietary software used for aerospace engineering and computational fluid dynamics. This specialized software could be used for industrial and military applications, such as development of advanced tactical missiles and aerodynamic design and assessment of weapons.

In executing the scheme, Song allegedly sent spear phishing emails to individuals employed in positions with the United States government, including NASA, the U.S. Air Force, Navy, and Army, and the Federal Aviation Administration.  Song also sent spear phishing emails to individuals employed in positions with major research universities in Georgia, Michigan, Massachusetts, Pennsylvania, Indiana, and Ohio, and with private sector companies that work in the aerospace field. Song’s spear phishing emails appeared to the targeted victims as having been sent by a colleague, associate, friend, or other person in the research or engineering community. His emails requested that the targeted victim send or make available source code or software to which Song believed the targeted victim had access.

According to the indictment, while conducting this spear phishing campaign, Song was employed as an engineer at Aviation Industry Corporation of China (“AVIC”), a Chinese state-owned aerospace and defense conglomerate headquartered in Beijing, China.  AVIC manufactures civilian and military aircrafts and is one of the largest defense contractors in the world.

Song Wu, 39, of China is charged with 14 counts of wire fraud and 14 counts of aggravated identity theft.  Song faces a maximum statutory sentence of 20 years in prison for each count of wire fraud. Song faces a mandatory, two-year consecutive sentence in prison if convicted of aggravated identity theft.

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

This case is being investigated by the Federal Bureau of Investigation and the NASA – Office of Inspector General.

Assistant U.S. Attorney Samir Kaushal is prosecuting the case. Within the National Security Division, this matter is being handled by Trial Attorney Tanner Kroeger of the National Security Cyber Section with assistance from the Counterintelligence and Export Control Section.

This case is being coordinated by the Disruptive Technology Strike Force, an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation-states. Under the leadership of the Assistant Attorney General for National Security and the Assistant Secretary of Commerce for Export Enforcement, the Strike Force leverages tools and authorities across the U.S. Government to enhance the criminal and administrative enforcement of export control laws.

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 – The United States Department of Justice and the U.S. Attorney’s Office for the Northern District of Georgia announce its partnerships, with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Field Division and DeKalb County, Georgia, to develop a plan to reduce intimate partner firearm violence and to prioritize prosecutions of domestic violence offenders.

“In 1994, Congress passed the Violence Against Women Act in 1994 to combat crimes against women associated with domestic violence, sexual assault, stalking, and other offenses,” said U.S. Attorney Ryan K. Buchanan.  “Our close partnerships with law enforcement agencies, local stakeholders, organizations, and others, is critical to combat the scourge of domestic violence to safeguard families and make our communities safer.”

The Department of Justice utilized data to identify DeKalb County and other communities throughout the United States that could benefit from increased focus on intimate partner violence resources. Our office had previously implemented a domestic violence firearm case referral program with the DeKalb County District Attorney’s Office.  In 2018, our offices launched this partnership to identify individuals for federal prosecution who possess a firearm following a conviction for a misdemeanor crime of domestic violence. 

This referral protocol resulted from the development of an innovative framework, by the District Attorney’s Office, for identifying such cases within their office, involving the input of felony and misdemeanor prosecutors, probation officers, and victim advocates. (See e.g. DeKalb County criminal justice partners set out to save lives with a firearm reduction initiative, https://www.preventdvgunviolence.org/community-spotlight/spotlight-dekalb-county-ga.html.)  In September 2019, our partnership was highlighted in a workshop at the Georgia Commission on Family Violence’s Annual Conference.  Through this strategic enforcement initiative, we expect to continue to identify and prosecute the most serious perpetrators of domestic violence – including offenders who use and possess firearms, which greatly increases the risk of serious injury or death to the victim.

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 - Travis Lee Harris has been sentenced to federal prison for wire fraud stemming from his fraudulent acquisition of a Paycheck Protection Program (PPP) loan for nearly $1,000,000, during the COVID-19 pandemic.

“Harris falsified a loan application to obtain PPP funds for his business that he then blatantly used to fund a lavish lifestyle,” said U.S. Attorney Ryan K. Buchanan. “Harris has now been held accountable for his crime. Our office will continue working with our law enforcement partners to investigate and prosecute anyone who defrauds taxpayers out of COVID-19 pandemic relief funds.”

“Fraudulent exploitation of SBA’s pandemic relief programs diverts critical resources from the small businesses that truly need them,” said Amaleka McCall-Brathwaite, Special Agent in Charge of the SBA OIG’s Eastern Region. “Our office is committed to protecting taxpayer funds and ensuring that individuals who attempt to defraud SBA programs are brought to justice. I want to thank the U.S. Attorney’s office and our law enforcement partners for their collaboration and dedication to justice in this case.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: In June 2020, Travis Harris, a former NFL player, signed a PPP loan application for his business, Atlanta Luxury Cars & Trucks LLC, in the amount of $968,405. Harris provided fraudulent information on his application about the number of employees, payroll, and revenue for the business. Based on Harris’ fraudulent representations, the lender deposited $968,405 into the bank account for Atlanta Luxury Cars & Trucks LLC. Harris soon began transferring the PPP loan funds into his personal bank accounts. In the following months, Harris posted to social media pictures of him holding a large stack of cash, buying a Rolex watch and other jewelry, and renting a room at a luxury hotel. Harris also used a portion of the PPP loan funds to finance other start-up businesses.

Travis Lee Harris, 43, of Atlanta, Georgia, was sentenced by U.S. District Court Judge Victoria M. Calvert to one year, four months in prison to be followed by three years of supervised release. He was also ordered to pay restitution in the amount of $997,457.15.  Harris was convicted on these charges on February 14, 2024, after he pleaded guilty.

This case was investigated by the U.S. Small Business Administration Office of Inspector General.

Assistant U.S. Attorneys Thomas M. Forsyth III and Alison B. Prout 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.

ROME, Ga. - Jose Rivera has been sentenced to federal prison for the possession of a stolen firearm, which he discharged at a Cartersville police officer, and for the possession of a firearm as a convicted felon.

“Rivera’s reckless criminal behavior placed the citizens of Cartersville at serious risk,” said U.S. Attorney Ryan K. Buchanan. “The sentencing of this dangerous felon is an example of our office’s commitment to work with our federal, state, and local law enforcement partners to keep our communities safe.”

“The complete disregard shown by Rivera for the safety of civilians, and the law enforcement officer who was shot at, is inexcusable,” said Mitchell Jackson, Senior Supervisory Resident Agent of FBI Atlanta’s Cartersville Office. “This disturbing trend of attacking law enforcement officers will not be tolerated by the FBI and we will continue to work with our partners in these cases to successfully prosecute dangerous repeat offenders.”

“Those that break the law and disregard the safety of our communities in Georgia will be held accountable,” said Chris Hosey, Director, Georgia Bureau of Investigation. “The GBI and our law enforcement partners will not tolerate these reckless criminal acts that place Georgia communities in danger. This case represents our commitment to upholding the safety of citizens across the state.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: On November 17, 2022, Rivera threw a cinderblock through the front door of a local store in Cartersville, Georgia, after which he entered the store and stole a 9mm pistol. He then went to a Circle K in Cartersville, where he pointed the gun at customers and fired the weapon.

An officer with the Cartersville Police Department arrived at the scene and Rivera fled behind the Circle K.  As the officer pursued the suspect, Rivera turned and fired at the officer. The officer returned fire, striking Rivera in the leg and foot. Rivera was arrested and provided with medical treatment. A subsequent investigation revealed that Rivera was a convicted felon and was prohibited from possessing a firearm.

Jose Rivera, 46, of Cartersville, Georgia, was sentenced by U.S. District Judge William M. Ray, II to 18 years, four months in prison to be followed by three years of supervised release. He was also ordered to pay restitution in the amount of $300.  Rivera was convicted on these charges on April 26, 2024, after he pleaded guilty.

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

Assistant U.S. Attorney Calvin A. Leipold, III 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) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Ryan Meyung, a motocross instructor who traveled the country building motocross tracks and mentoring children, has been sentenced for multiple child exploitation offenses.

“Meyung is a predator who sexually abused numerous children while working as a motocross coach,” said U.S. Attorney Ryan K. Buchanan. “This office remains steadfast in our determination to closely coordinate with our law enforcement partners across state lines to ensure justice is served to those who commit these heinous crimes against children.”

“This coach violated his position of trust and profound responsibility to protect and mentor those in his care,” said Homeland Security Investigations Nashville Special Agent in Charge Rana Saoud. “HSI, alongside our partners at the Hamilton County Sheriff’s Office and the Chattanooga Police Department, is fully committed to investigating and removing people who seek to harm our children. Our primary concern is ensuring justice for the victims and supporting their needs.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: Between July 2019 and December 2021, Ryan Meyung caused six minor victims to engage in sexually explicit conduct to produce images and videos of child sexual abuse. At the time, the victims were between six and 13 years old. Meyung also possessed and transported images and videos of child sexual abuse produced by other sex offenders.  Additionally, he sexually abused and recorded other children engaged in sexually explicit conduct.

Ryan Meyung, 33, of no fixed address, was sentenced to 40 years in prison to be followed by supervised release for life. He was also ordered to pay restitution in the amount of $193,500.  Meyung was convicted of six counts of producing child pornography on April 26, 2024, after he pleaded guilty.

This case was investigated by Homeland Security Investigation - Chattanooga (Tennessee) with joint assistance from Homeland Security Investigation – Dalton (Georgia), the Hamilton County Sheriff’s Office (Tennessee), the Chattanooga (Tennessee) Police Department, and Homeland Security Investigation field offices throughout the country.

Assistant U.S. Attorney Erin N. Spritzer and Trial Attorneys Jessica L. Urban and James E. Burke IV of the Justice Department’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case. 

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

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.

A motocross instructor who mentored children was sentenced today to 40 years in prison, followed by a lifetime of supervised release, and ordered to pay at least $193,500 in restitution for sexually exploiting numerous children.

According to court documents, Ryan Meyung, 33, of no fixed address, sexually exploited multiple young children that he met and befriended while traveling the country as a motocross instructor between July 2019 and December 2021. As part of his predatory behavior, Meyung produced images and videos of six different minor victims engaged in sexually explicit conduct, including sex acts with him and with each other. The victims were between 6 and 13 years old at the time. Meyung also possessed and transported images and videos of child sexual abuse produced by other sex offenders and sexually abused and recorded other children engaged in sexually explicit conduct.            

Meyung pleaded guilty in April to six counts of sexual exploitation of a minor (producing child sexual abuse material) and has been in custody since his arrest in December 2021.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia, and Special Agent in Charge Rana Saoud of Homeland Security Investigations (HSI) Nashville made the announcement.

HSI Chattanooga investigated the case, with assistance from HSI Dalton, the Hamilton County, Tennessee, Sheriff’s Office, Chattanooga, Tennessee, Police Department, and HSI field offices throughout the country. 

Trial Attorneys Jessica L. Urban and James E. Burke IV of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Erin N. Spritzer for the Northern District of Georgia prosecuted the case.

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

ATLANTA - Paul Kim, a pediatric dentist, has pleaded guilty to possessing thousands of images and videos of minors, including some 12 years old and younger, engaging in sexually-explicit activity. 

“Kim possessed materials depicting the sexual exploitation of minors at the same time that parents were entrusting their children to his pediatric care,” said U.S. Attorney Ryan K. Buchanan. “Possessing child pornography exploits and abuses children, essentially creating lasting effects for the victims each time the images are distributed online.”

“Every time child exploitation imagery is shared, it re-victimizes innocent and vulnerable children. Our office is focused on using all the resources needed for the very important work of protecting children in Georgia and beyond,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “This plea demonstrates that no person is above the law. Regardless of employment, wealth, or social status, the FBI will continue to seek out all individuals who seek to abuse children and victimize them through the downloading and possession of child pornography.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: An FBI investigation of Paul Kim resulted from a broader investigation into a commercial sexual exploitation ring which advertised and sold child pornography on several online platforms. FBI Special agents identified Kim as one of the suspected purchasers of the material.

In December 2023, the agents executed a search warrant for Kim and his residence in Sandy Springs, Georgia, seizing approximately 30 electronic devices.  The agents located about 1,948 images and 798 videos of child pornography on these devices.  Several videos in Kim’s possession depicted prepubescent females engaged in sexual acts with adult males or objects.

Paul Bogeun Kim, 31, of Sandy Springs, pleaded guilty to possession of child pornography on August 23, 2024.  Kim’s sentencing is scheduled for November 21, 2024, at 10:00 a.m. before U.S. District Judge Thomas W. Thrash, Jr.

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

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

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

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

NEWNAN, Ga. - Barry Lee White has been sentenced to federal prison for willful failure to pay more than $2.4 million in payroll taxes.

“Payroll taxes fund important social insurance programs, including Social Security and Medicare,” said U.S. Attorney Ryan K. Buchanan.  “White refused to pay payroll taxes after withholding those funds from his employees’ paychecks for years – stealing from his employees and United States taxpayers.  Employers who fail to comply with their legal obligations will be held accountable.”

“Employment tax evasion is stealing from the government and the American taxpayer,” said Demetrius Hardeman, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “Business owners are entrusted to collect and turn over IRS withholding taxes; not doing so may affect employees’ future social security and Medicare benefits. Investigating employment tax fraud is very important to IRS Criminal Investigation. Our special agents will work hard to ensure those who engage in this criminal activity are held accountable.”

According to U.S. Attorney Buchanan, the charges and other information presented in court:  Between 2012 and 2019, Barry Lee White owned and operated, at different times, two construction maintenance and electrical companies: I-Barr Construction, Inc. and T-Line Construction, LLC.  As an employer, White’s companies were required to withhold from employees’ gross pay Federal Insurance Contributions Act (FICA) taxes, which represent Social Security and Medicare taxes, and federal income taxes.  Collectively, these withheld taxes are referred to as “payroll taxes.”

As the sole operator of the companies, White had the responsibility to collect, truthfully account for, and pay the IRS the payroll taxes.  From at least 2015 to 2018, White withheld over $1.8 million in payroll taxes from his employees but failed to pay the taxes to the IRS.  In addition, White was required to pay a certain portion of Social Security and federal unemployment tax for the companies; however, he failed to pay more than $600,000 for the employer’s portion of the payroll taxes.

Barry Lee White, 59, of Carrollton, Georgia, was sentenced to one year, 10 months in prison to be followed by three years of supervised release. He was also ordered to pay restitution in the amount of $2,499,473.07.  White was convicted of these charges on May 7, 2024, after he pleaded guilty.

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

Assistant U.S. Attorneys Angela Adams and Erin N. Spritzer 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 - The City of Atlanta’s former Chief Financial Officer, Jimmie “Jim” A. Beard, has been sentenced to federal prison for a multi-year scheme involving theft of funds, purchase and possession of two machine guns, and obstructing federal tax laws using altered documents and a fake business.

“Jim Beard abused the trust and confidence placed in him by the people of the City of Atlanta when he decided to steal tens of thousands of dollars from taxpayers to support his lavish lifestyle,” said U.S. Attorney Ryan K. Buchanan. “Beard’s sentencing is a demonstration of our commitment to hold accountable public officials who trade their position of power for greed and personal gain.”

“As this prosecution shows, the Department of Justice will work vigorously to protect the integrity of federal funds.  Today’s sentence sends a strong message of deterrence to prevent fraud and theft from state and local governments receiving federal benefits,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri. 

“Beard’s actions eroded public trust in government. As one of the most powerful people in Atlanta city government, he stole tens of thousands of dollars from taxpayers so he could go on luxurious trips and even buy custom-made machine guns,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Public corruption is one of the FBI’s top priorities and we continue to work to protect citizens against officials who abuse that trust.”

“Public officials are entrusted by the citizens they serve to conduct the business of government on their behalf,” said Demetrius Hardeman, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “Jim Beard failed in his responsibilities to the community and utilized public tax dollars to satisfy his greed. The sentence today reinforces IRS Criminal Investigation’s commitment to investigating and forwarding for prosecution those who commit financial fraud.”

“Beard repeatedly abused his position, broke the law he was sworn to uphold and betrayed the trust of the people of Atlanta,” said ATF Assistant Special Agent in Charge Alicia D. Jones. “This case demonstrates the partnerships of law enforcement to enforce the law and hold individuals accountable, regardless of their position or status.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: From approximately November 2011 to May 2018, Beard served as the Chief Financial officer (“CFO”) of the City of Atlanta (the “City”). As CFO, Beard directed and managed the Department of Finance, with primary responsibility for oversight and management of the City’s financial condition, earning a salary of over $260,000 per year.

During his tenure, Beard devised and executed a scheme to obtain money and property from the City for private use, including using City funds to: (1) pay for personal luxury travel expenses for himself, his family, and his travel companions; (2) buy items for personal use, including two machine guns; (3) pay for travel to conferences or meetings for which the conference or meeting host reimbursed Beard, with Beard pocketing the reimbursements instead of giving them to the City; and (4) pay for travel that Beard falsely claimed as business deductions on his taxes for a non-existent personal consulting business.

In total, Beard stole at least tens of thousands of dollars from the City.  By way of example only:

•In the summers of 2015 and 2016, Beard charged nearly $4,000 to the City for weekend stays at the J.W. Marriott Hotel in Chicago, Illinois. However, Beard was not in Chicago those weekends and the hotel rooms were actually for his stepdaughter to attend the Lollapalooza music festival.

•In December 2015, Beard ordered two custom-built machine guns using a purchase order and $2,641.90 check from the City, telling the manufacturer that the machine guns were for the exclusive use of the Atlanta Police Department (“APD”) – even though Beard took the guns to his own home and APD had no knowledge of them.

•In April 2016, Beard charged more than $2,600 to the City for airfare and hotels for two weekend trips to the New Orleans Jazz and Heritage Festival. Beard had no City business in New Orleans during either trip, and took his wife one of the weekends and a different personal companion the other.

•In June 2016, Beard charged $975.52 to the City for travel to Washington, D.C. for a meeting with the Municipal Securities Rulemaking Board (“MSRB”). Even though Beard had the City pay for this travel, Beard asked the MSRB to reimburse him personally for these costs and submitted copies of his receipts to the MSRB. As a result, the MSRB issued a check to Beard, which he kept and deposited into his personal bank account.

•In April 2017, Beard charged more than $10,000 to the City for a four-day stay for him and his wife at the Shangri-La Hotel in Paris, in a deluxe suite with a view of the Eiffel Tower.

Beard exploited his position and power to execute his scheme. When lower-level City staff members responsible for processing travel reimbursements asked him for receipts or work justifications for his trips, Beard refused and ordered the staff (who worked for him) to process the reimbursements without the requisite documentation. A City employee described the culture under Beard as, “if the [] CFO asks you for something, you do not ask questions.”

While CFO, Beard also submitted years of fraudulent tax returns in which he claimed personal business expenses to lower what he owed in taxes. During a 2015 audit of one of those returns, Beard lied to the IRS and obstructed auditors by submitting receipts for transactions that were actually paid by the City in connection with Beard’s official duties. The investigation later revealed that Beard did not operate a personal business, and years of tax deductions were based on a lie. 

Jimmie “Jim” A. Beard, 60, of Fort Lauderdale, Florida was sentenced by U.S. District Judge Steve C. Jones to three years in prison to be followed by three years of supervised release. Beard was also ordered to pay a fine of $10,000 and restitution in the amount of $177,197.48.  Beard was convicted on these charges on April 8, 2024, after he pleaded guilty.

This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigations, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives.

Assistant U.S. Attorneys Garrett Bradford and Tiffany Johnson, Department of Justice Trial Attorney Trevor Wilmot, and former Assistant U.S. Attorney Jeffrey Davis prosecuted the case.

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

The United States joined a whistleblower suit and filed a complaint-in-intervention against the Georgia Institute of Technology (Georgia Tech) and Georgia Tech Research Corp. (GTRC) asserting claims that those defendants knowingly failed to meet cybersecurity requirements in connection with the Department of Defense (DoD) contracts. GTRC is an affiliate of Georgia Tech that contracts with government agencies for work to be performed at Georgia Tech. The whistleblower suit was initiated by current and former members of Georgia Tech’s Cybersecurity team.

“Government contractors that fail to fully implement required cybersecurity controls jeopardize the confidentiality of sensitive government information,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department’s Civil Cyber-Fraud Initiative was designed to identify such contractors and to hold them accountable.”

Specifically, the lawsuit alleges that until at least February 2020, the Astrolavos Lab at Georgia Tech failed to develop and implement a system security plan, which is required by DoD cybersecurity regulations, that set out the cybersecurity controls that Georgia Tech was required to put in place in the lab. Even when the Astrolavos Lab finally implemented a system security plan in February 2020, the lawsuit alleges that Georgia Tech failed to properly scope that plan to include all covered laptops, desktops, and servers.

Additionally, the lawsuit alleges until December 2021, the Astrolavos lab failed to install, update or run anti-virus or anti-malware tools on desktops, laptops, servers and networks at the lab. Instead, Georgia Tech approved the lab’s refusal to install antivirus software — in violation of both federal cybersecurity requirements and Georgia Tech’s own policies — to satisfy the demands of the professor who headed the lab.

The lawsuit further alleges that in December 2020 Georgia Tech and GTRC submitted a false cybersecurity assessment score to DoD for the Georgia Tech campus. DoD requires contractors to submit summary level scores reflecting the status of their compliance with applicable cybersecurity requirements on covered contracting systems that are used to store or access covered defense information. The submission of this score was a “condition of contract award” for Georgia Tech’s DoD contracts. The lawsuit alleges that the summary level score of 98 for the Georgia Tech campus that Georgia Tech and GTRC reported to DoD in December 2020 was false because (1) Georgia Tech did not actually have a campus-wide IT system and (2) the score was for a “fictitious” or “virtual” environment and did not apply to any covered contracting system at Georgia Tech that could or would ever process, store or transmit covered defense information.

“Cybersecurity compliance by government contractors is critical in safeguarding U.S. information and systems against threats posed by malicious actors,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “For this reason, we expect contractors to abide by cybersecurity requirements in their contracts and grants, regardless of the size or type of the organization or the number of contracts involved. Our office will hold accountable those contractors who ignore cybersecurity rules.”

“Deficiencies in cybersecurity controls pose a significant threat not only to our national security, but also to the safety of the men and women of our armed services who risk their lives daily,” said Special Agent in Charge Darrin K. Jones of the DoD's Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “As force multipliers, we place a substantial amount of trust in our contractors and expect them to meet the strict standards our service members deserve.”

The whistleblower lawsuit was filed by Christopher Craig and Kyle Koza, who were previously senior members of Georgia Tech’s cybersecurity compliance team, under the qui tam or whistleblower provisions of the False Claims Act, which allow private parties to file suit on behalf of the United States for false claims and to receive a share of any recovery. The act permits the United States to intervene and take over responsibility for litigating these cases, as it has done here. A defendant who violates the act is subject to liability for three times the government’s losses, plus applicable penalties.   

On Oct. 6, 2021, Deputy Attorney General Lisa Monaco announced the department’s Civil Cyber-Fraud Initiative to hold accountable entities or individuals that put U.S information or systems at risk by knowingly providing deficient cybersecurity products or services, knowingly misrepresenting their cybersecurity practices or protocols or knowingly violating obligations to monitor and report cybersecurity incidents and breaches. Information on how to report cyber fraud can be found here.

Senior Trial Counsel Jake M. Shields of the Justice Department's Civil Division and Assistant U.S. Attorneys Adam D. Nugent and Melanie D. Hendry for the Northern District of Georgia are handling the matter.

The case is captioned United States ex rel. Craig v. Georgia Tech Research Corp, et al., No. 1:22-cv-02698 (N.D. Ga.). Investigative support is being provided by the DoD Office of Inspector General, Defense Criminal Investigative Service, Air Force Office of Special Investigations and Air Force Material Command.

The claims alleged by the United States are allegations only. There has been no determination of liability.

Complaint

ATLANTA – The United States has filed a complaint-in-intervention against the Georgia Institute of Technology (Georgia Tech) and Georgia Tech Research Corporation (GTRC) raising claims under the False Claims Act and federal common law alleging that those defendants failed to meet cybersecurity requirements in connection with U.S. Department of Defense (DoD) contracts.

GTRC is an affiliate of Georgia Tech that contracts with government agencies for work to be performed at Georgia Tech and its related entities. On February 20, 2024, the United States intervened in a whistleblower suit brought by current and former members of Georgia Tech’s cybersecurity team against Georgia Tech and GTRC.

“Cybersecurity compliance by government contractors is critical in safeguarding U.S. information and systems against threats posed by malicious actors,” said U.S. Attorney Ryan K. Buchanan. “For this reason, we expect contractors to abide by cybersecurity requirements in their contracts and grants, regardless of the size or type of the organization or the number of contracts involved. Our office will hold accountable those contractors who ignore cybersecurity rules.”

“Government contractors that fail to fully implement required cybersecurity controls jeopardize the confidentiality of sensitive government information,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department’s Civil Cyber-Fraud Initiative was designed to identify such contractors and to hold them accountable.”

“Deficiencies in cybersecurity controls pose a significant threat not only to our national security, but also to the safety of the men and women of our armed services that risk their lives daily,” said Special Agent-in-Charge Darrin K. Jones, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office.  “As force multipliers, we place a substantial amount of trust in our contractors and expect them to meet the strict standards our service members deserve.”

The United States’ complaint alleges that, from at least as early as 2019 and extending for multiple years, Georgia Tech essentially had “no enforcement” of federal cybersecurity regulations in connection with DoD contracts and fostered a “culture of somebody up the line is going to overturn me . . . [so] I might as well go ahead and ignore the policy” with respect to cybersecurity compliance. Georgia Tech, the suit alleges, routinely acquiesced to the demands of “star researchers”—who were treated like “star quarterbacks” because they secured large government contracts—when those researchers “pushed back” on cybersecurity compliance because the researchers found it troublesome. 

Specifically, the lawsuit alleges that from at least May 2019 until at least February 2020, the Astrolavos Lab at Georgia Tech failed to develop and implement a required system security plan that set out the cybersecurity controls that were put in place in the lab to comply with applicable DoD cybersecurity requirements. Nor, until August 2019 at the earliest, did Georgia Tech undertake to implement the required DoD cybersecurity controls at the lab the suit alleges. Even when the Astrolavos Lab finally implemented a system security plan in February 2020, the lawsuit alleges that Georgia Tech failed to properly scope that plan to include all covered laptops, desktops, and servers, and then in the ensuing years failed to monitor and update that plan as required by applicable cybersecurity rules and regulations.

Additionally, the lawsuit alleges that from at least as early as May 2019 until December 2021, the Astrolavos lab failed to install, update, or operate anti-virus or anti-malware tools on desktops, laptops, servers, and networks at the lab. Georgia Tech allegedly approved the lab’s refusal to install antivirus software—in violation of both federal cybersecurity requirements and Georgia Tech’s own policies—to satisfy the demands of the professor who headed the lab. In connection with contracts that DoD entered into with GTRC on behalf of Georgia Tech, defendants were obligated to implement these and other cybersecurity controls at the Astrolavos Lab.

The lawsuit further alleges that in December 2020, Georgia Tech and GTRC submitted a false and fraudulent cybersecurity assessment score to DoD for the Georgia Tech campus. DoD requires contractors to submit summary level scores reflecting the status of their compliance with applicable cybersecurity requirements on covered contracting systems that are used to store or access covered defense information. The submission of this score is a “condition of contract award” for most DoD contracts. The lawsuit alleges that the summary level score of 98 for the Georgia Tech campus that Georgia Tech and GTRC reported to DoD in December 2020 was false and fraudulent because: (1) Georgia Tech did not have, nor could it ever have, a campus-wide IT system; (2) the score was for a “fictitious” or “virtual” environment that was a “construct” since it was not “specifically associated to any active research at Georgia Tech” and was “not actually describing something that exists;” and (3) the score was not for any covered contracting system at Georgia Tech that could or would ever process, store, or transmit covered defense information.

On October 6, 2021, the Deputy Attorney General announced the Department’s Civil Cyber-Fraud Initiative to hold accountable entities or individuals that put United States information or systems at risk by knowingly providing deficient cybersecurity products or services, knowingly misrepresenting their cybersecurity practices or protocols, or knowingly violating obligations to monitor and report cybersecurity incidents and breaches. Information on how to report cyber fraud can be found here.  This lawsuit is the first matter the United States has litigated as part of the Civil Cyber-Fraud Initiative. 

The whistleblower lawsuit was filed by Christopher Craig and Kyle Koza, who were previously senior members of Georgia Tech’s cybersecurity compliance team, under the qui tam or whistleblower provisions of the False Claims Act.  The act allows private parties to file suit on behalf of the United States for false claims and to receive a share of any recovery. The act also permits the United States to intervene and assume responsibility for litigating these cases, as it has done here. A defendant who violates the act is subject to liability for three times the government’s losses, plus applicable penalties.     

This case is being handled by the Justice Department’s Civil Division and the United States Attorney’s Office for the Northern District of Georgia. The case is captioned United States ex rel. Craig v. Georgia Tech Research Corp, et al., No. 1:22-cv-02698 (N.D. Ga.).  Investigative support is being provided by the DoD Office of Inspector General, Defense Criminal Investigative Service, Air Force Office of Special Investigations, and Air Force Material Command.

This matter is being handled by Senior Trial Counsel Jake M. Shields and Assistant U.S. Attorneys Adam D. Nugent and Melanie D. Hendry.

The claims in which the United States has intervened 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.

GAINESVILLE, Ga. - Michael Mayfield, who orchestrated a more than one-million-dollar scheme to defraud his employer by stealing rebate checks and submitting false invoices to his company, has pleaded guilty to conspiracy to commit wire fraud.

“Mayfield stole over one million dollars from his employer related to environmental and recycling programs,” said U.S. Attorney Ryan K. Buchanan. “After being entrusted with a fiduciary role, he betrayed that trust and demonstrated that he cared more about his personal gain than the faith his employer placed in him.”

“Michael Mayfield not only betrayed his employer, but his actions ultimately increased the costs of business not only for the company but it’s customers too,” said FBI Atlanta Assistant Special Agent in Charge Sean Burke. “The FBI is committed following every lead to bring white-collar criminals like Mayfield to face justice.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: Around early December 2016, Michael Mayfield was employed as an environmental manager at the Mars Wrigley factory in Flowery Branch, Georgia. In that role, he oversaw the Health, Safety, and Environmental and Recycling Programs.

The recycling waste produced at the factory was valuable and companies often made direct payments or sent Mars Wrigley rebate checks after disposal of the material. But unbeknownst to Mars Wrigley, Mayfield diverted the checks to his own company, WWJ Recycling. The fraudulently obtained checks totaled over $500,000. Mayfield used the funds to pay for hunting trips worth more than $100,000, a donation to his church for more than $80,000, and more than $200,000 in personal checks.

Mayfield also directed his co-conspirator to create false invoices from ASA Safety Supply, a supplier to Mars Wrigley. The co-conspirator sent the invoiced items to Mayfield for his personal use and then submitted false invoices from ASA Safety Supply to Mars Wrigley for payment. The purchased items included football supplies for the Flowery Branch High School football team, such as cleats and clothing, improvements to the stadium, tickets to a University of Georgia football game, and gift cards. These false invoices totaled over $199,000.

Mayfield also sent invoices from WWJ Recycling to ASA Safety Supply. His co-conspirator directed ASA Safety Supply to pay those invoices and then submit the false invoices to Mars Wrigley for payment for work that was not done. The WWJ Recycle invoices totaled over $750,000.

Michael Mayfield, 55, of Flowery Branch, Georgia, pleaded guilty to one count of conspiracy to commit wire fraud on August 19, 2024. He is scheduled to be sentenced on December 2, 2024, at 10:00 a.m. before U.S. District Judge Richard W. Story in Gainesville, Georgia.

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

Assistant U.S. Attorney Christopher J. Huber is prosecuting the case.

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

ATLANTA - Jorge Rodriguez-Martinez has been sentenced to federal prison for his role in distributing multiple kilograms of methamphetamine in the metro-Atlanta area.

“Methamphetamine traffickers pose a grave threat to our communities and peddle these dangerous drugs in total disregard of the lives they place at risk,” said U.S. Attorney Ryan K. Buchanan. “Thanks to the coordinated and tireless efforts of our federal and state partners, Rodriguez-Martinez will now be held accountable for his crimes.”

“Our communities remain under attack by drug traffickers with no regard for the harm and destruction they cause,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division. “DEA will continue to bring to justice the drug traffickers who drive addiction and destroy our communities.”

“Under DEA leadership, the federal, state and local agencies assigned to the Atlanta Carolinas work tirelessly to thwart this poison from impacting so many communities in North Georgia,” said Dan Salter, Director of the Atlanta Carolinas High Intensity Drug Trafficking Area.  This investigation, culminating with the sentencing of Rodriguez-Martinez, exemplifies that good always prevails and the effort and commitment by agents and task force officers is noble.”      

According to U.S. Attorney Buchanan, the charges and other information presented in court: On October 7, 2020, a confidential source (CS) working with agents from the DEA, made multiple recorded phone calls to Rodriguez-Martinez to purchase several kilograms of methamphetamine. After the phone calls, Rodriguez-Martinez, who was being surveilled by federal law enforcement agents, travelled to a location in the metro-Atlanta area to meet with a drug supplier at a Dunwoody apartment complex.  Rodriguez-Martinez traveled to the CS’s residence where he dropped off his truck containing multiple kilograms of methamphetamine, switched vehicles, then drove away.

The CS placed additional recorded phone calls to Rodriguez-Martinez, during which Rodriguez-Martinez confirmed that the drugs were in the truck and agreed to return to the CS’s residence to pick up the drugs. Rodriguez-Martinez next travelled to the CS’s residence, picked up the methamphetamine, and quickly departed. Shortly thereafter, the Georgia State Patrol stopped Rodriguez-Martinez’s vehicle and located approximately three kilograms of methamphetamine on the front passenger floorboard.

Jorge Rodriguez-Martinez, 56, of Duluth, Georgia, was sentenced by U.S. District Judge Steve C. Jones on August 16, 2024, to 10 years in prison on each count, to be served concurrently, followed by four years of supervised release. Following a three-day trial, a federal jury convicted Rodriguez-Martinez on April 25, 2024, on one count of conspiracy to possess methamphetamine with the intent to distribute, and one count of possessing methamphetamine with the intent to distribute.

This case was investigated by the Drug Enforcement Administration and the Atlanta Carolinas High Intensity Drug Trafficking Area (HIDTA) Task Force, with assistance from the Georgia State Patrol.

Special Assistant U.S. Attorney McClellon D. Cox, III, and Assistant U.S. Attorney Sandra E. Strippoli prosecuted the case. This case was previously prosecuted by Special Assistant U.S. Attorney Rachel S. Lyons.

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 - Mamadou D’Jire, a previously convicted felon, has been sentenced to federal prison for possessing a firearm while illegally selling drugs, damaging a government vehicle while fleeing from law enforcement, and for violating the terms of his supervised release.

“D’Jire is a dangerous felon who resumed his criminal activity shortly after being released from prison,” said U.S. Attorney Ryan K. Buchanan. “This successful prosecution is the result of the collaborative work of our federal, state, and local law enforcement partners whose investigation and apprehension of D’Jire make our community safer.”

“Criminals must understand that there are serious repercussions for the illegal possession of firearms,” said ATF Assistant Special Agent in Charge Alicia D. Jones. “The ATF and our law enforcement partners will contribute all necessary time and effort to ensure criminals are brought to justice.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: On June 14, 2022, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) special agents, and law enforcement officers with the DeKalb County, Georgia, Police Department, surveilled a gas station on Hairston Road in Stone Mountain, Georgia, when they saw Mamadou D’Jire make several marijuana sales.  

As D’Jire departed the gas station driving a white Nissan Altima, a Dekalb County police officer pulled behind the Altima and attempted to conduct a traffic stop. D’Jire pulled into an apartment complex where children were playing outside, but he refused to come to a complete stop. ATF agents then used their government vehicle to block the Altima. As the agents exited their vehicle, D’Jire accelerated, crashed into the agents’ vehicle, and smashed the driver’s side door, causing extensive damage.

D’Jire then fled the scene but was quickly apprehended and placed under arrest. Agents searched the vehicle D’Jire was driving and found a semi-automatic 9mm caliber pistol with an extended magazine, ammunition, marijuana packaged for sale, and a federal supervised release identification card. D’Jire, a convicted felon, was released from prison approximately a month prior to committing these offenses. He had been previously convicted of three violent felonies, including two burglaries and an armed robbery.

Mamadou D’Jire, 29, of Stone Mountain, Georgia, was sentenced by U.S. District Judge Steve C. Jones to 12 years in prison to be followed by three years of supervised release. He was also ordered to pay restitution in the amount of $6,631.99.  D’Jire was convicted of destruction of government property and possession of a firearm in furtherance of a drug trafficking crime on May 14, 2024, after he pleaded guilty.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with valuable assistance provided by the DeKalb County Police Department and the Georgia State Patrol.

Assistant U.S. Attorney Bethany L. Rupert 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) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Roderick Billingslea has been sentenced to federal prison for obtaining a fraudulent Paycheck Protection Program (PPP) loan and operating illegal trucking businesses.

“Billingslea falsified documents in order to receive PPP funds to operate illegal and unsafe businesses that he was ordered to stop operating,” said U.S. Attorney Ryan K. Buchanan. “He has now been held accountable for his crimes.  But our office’s work continues in collaborating with our law enforcement partners to investigate and prosecute those who defraud the United States Government, including by stealing funds from PPP and other important programs.”

“Today’s sentence should send a clear message that, along with our law enforcement and prosecutorial partners, we will tirelessly pursue individuals who compromise trucking safety by intentionally ignoring or circumventing federal orders and regulations,” said Joseph Harris, Special Agent in Charge, U.S. Department of Transportation Office of Inspector General (DOT OIG), Southern Region. “We encourage the public to contact OIG’s Hotline at www.oig.dot.gov/hotline to report suspected PPP loan fraud or other illegal activities that affect the integrity of DOT programs or operations.”

“This case underscores the critical role of oversight in safeguarding taxpayer dollars and ensuring that pandemic relief programs are not exploited by those who seek to commit fraud,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Braithwaite. “Our office will remain steadfast in pursuing those who use such vital resources for personal gain. I want to thank the U.S. Attorney’s office and our law enforcement partners for their collaboration and dedication to justice in this case.”

“Billingslea chose to commit fraud and steal limited pandemic relief funds designated to help businesses struggling to survive,” said Frederick D. Houston, Special Agent in Charge, U.S. Secret Service Atlanta Field Office. “This case signifies our commitment to protect citizens and businesses from fraud and identity theft.  We will continue to work with our local, state, and federal law enforcement partners to prosecute those who abuse these programs.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: In January 2020, the Department of Transportation (DOT) ordered Billingslea’s trucking business, Billingslea’s Inc., to cease all operations due to multiple safety violations. Billingslea was also prohibited from creating any successor trucking entities.

Despite this order, Billingslea filed multiple registrations with DOT for new trucking entities that listed false owners and fake addresses. Billingslea controlled and operated these illegal businesses by stealing the corporate identities of legitimate trucking businesses. He then employed unsuspecting truck drivers who were unaware that they were hired by an illegitimate business.  Billingslea used the drivers until they incurred DOT violations, after which he hired new drivers and moved on to another illegal entity. 

Billingslea funded this illegal trucking enterprise with money he obtained from a PPP loan that he received through false pretenses.  In June 2020, Billingslea applied for and received a PPP loan for $564,363 on behalf of Billingslea, Inc. He lied on his application, claiming that he was not barred from operating a trucking business. Billingslea also inflated the number of employees and monthly wages for the business.  In April 2022, he obtained forgiveness of the loan by submitting false tax documents with the forgiveness application.

Roderick Bashon Billingslea, Jr., 30, of Dacula, Georgia, was sentenced by U.S. District Court Judge Leigh Martin May on August 13, 2024, to two years, six months in prison to be followed by three years of supervised release. He was also ordered to pay restitution in the amount of $591,668.89 and the cost of his incarceration, or $49,770 annually.  Billingslea was convicted on these charges on April 11, 2024, after he pleaded guilty to one count of wire fraud and one count of falsification of records.

This case was investigated by the Department of Transportation – Office of the Inspector General, Small Business Administration – Office of the Inspector General, and the U.S. Secret Service.

Special Assistant U.S. Attorney Diane C. Schulman 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 - Mycheal Arnell Brady, also known as “Michael Brady,” has been indicted on federal charges of wire fraud and aggravated identity theft, for stealing COVID-19 relief funds and submitting fraudulent federal tax refunds using the stolen identities of multiple individuals. Brady has also been charged with possession of unauthorized access devices that contained dozens of the identity theft victims’ personal information, including their Social Security numbers.

“Brady’s alleged scheme defrauded programs designed to support legitimate businesses struggling during the COVID-19 relief pandemic,” said U.S. Attorney Ryan K. Buchanan. “To further perpetrate his fraud, he also allegedly used stolen personal information from unsuspecting victims to file fraudulent tax returns and obtain refunds.”

“This case demonstrates our unwavering commitment to protecting the integrity of COVID-19 relief programs,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Braithwaite. “Fraudulent activities undermine the purpose of these essential programs, designed to support legitimate small businesses struggling during the pandemic. I want to thank the U.S. Attorney’s office and our law enforcement partners for their support and dedication to ensuring that those who exploit federal programs are held accountable.”

“Mycheal Brady’s alleged theft of funds under the CARES Act and other criminal activity led to his indictment today,” said Demetrius Hardeman, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office.  “It is only a matter of time before IRS Criminal Investigation special agents and our law enforcement partners uncover the crimes of many others who defrauded the American people during the COVID-19 pandemic.”

According to U.S. Attorney Buchanan, the indictment, and other information presented in court: Mycheal Brady allegedly submitted several fraudulent Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP) loan applications to authorized lenders and the Small Business Administration. The applications contained fraudulent information regarding gross revenues and fake employees at his various companies and sought over $1.9 million in funding. He also allegedly submitted fraudulent tax forms and bank statements to support his loan applications. Brady allegedly received more than $330,000 from the fraudulent EIDL and PPP loans, which were not used for authorized business purposes.

In connection with his fraudulent schemes, Brady also allegedly possessed dozens of Social Security numbers belonging to the stolen identity theft victims, which Brady then used to apply for federal tax refunds. The victims were not aware of Brady’s use of their personal identifying information nor did they consent to his filing of their federal tax refunds on their behalf.

Mycheal Arnell Brady, also known as “Michael Brady,” 36, of Peachtree City, Georgia was arraigned before U.S. Magistrate Judge J. Christopher C. Bly on August 5, 2024. He was indicted by a federal grand jury on July 23, 2024. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges, and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.

This case is being investigated by the Internal Revenue Service Criminal Investigation and U.S. Small Business Administration Office of Inspector General.

Assistant U.S. Attorneys Natasha Cooper and Samir Kaushal are prosecuting 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 - Dwayne Davis has been indicted by a federal grand jury for wire fraud and money laundering in connection with a scheme to defraud his business partner, Government Employees Insurance Company (GEICO), of more than $5 million.

“Davis occupied a position of trust in his relationship with his business partner and allegedly abused that trust to facilitate and conceal his fraudulent conduct,” said U.S. Attorney Ryan K. Buchanan. “His alleged diversion of his business partner’s funds to pay personal expenses has resulted in Davis potentially facing decades in federal prison.”

“This defendant allegedly took advantage of his business partners, violating their trust and deceiving them for his own personal gain,” said FBI Atlanta Assistant Special Agent in Charge Sean Burke. “Actions like these ultimately impact customers through higher insurance costs. The FBI will continue to partner with law enforcement partners to pursue those who commit financial crimes and steal from trusting individuals.

According to U.S. Attorney Buchanan, the indictment, and other information presented in court:  GEICO was the majority owner, and Davis was the minority owner, of a limited partnership called PIS QOZ Fund 2018-A, LP.  In November 2018, GEICO contributed $26 million to the Partnership as an investment in Riverside Village, a commercial development in North Augusta, South Carolina.

In April 2021, GEICO agreed to contribute another $5.91 million to the Partnership to resolve a multiparty dispute involving unpaid taxes, a construction lawsuit, and foreclosure proceedings. GEICO wire transferred the $5.91 million to the Partnership’s account—an account that Davis controlled—with the understanding that Davis would use the money solely to pay the taxes, settle the lawsuit, and stop the foreclosure proceedings. GEICO did not authorize Davis to use the money for any other purpose.

But almost immediately after taking control of the $5.91 million, Davis allegedly began siphoning off money from the Partnership’s account and secretly transferring it to accounts that he controlled at other banks—accounts that were not related to the Partnership. In all, Davis surreptitiously transferred $5,898,000 out of the Partnership's account. Those transfers served no legitimate Partnership purpose and were allegedly made with the intent to defraud GEICO and the Partnership.

Davis eventually used some of the diverted money to pay taxes owed by the Partnership, but he never made the payments to settle the lawsuit or stop the foreclosure proceedings. Instead, Davis used the remaining money to pay his personal debts and expenses and to pay expenses related to business ventures that did not involve the Partnership or GEICO.

Dwayne Peterson Davis, 54, of Atlanta, Georgia, was indicted by a federal grand jury on August 13, 2024. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges, and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.

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

Assistant U.S. Attorney John Russell Phillips is prosecuting the case.

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

A former detention officer with the Fulton County, Georgia, Sheriff’s Office was sentenced today to 48 months in prison and three years of supervised release for intentionally depriving a detained woman of her civil rights by using unreasonable force.

Monique Clark, 32, of Stone Mountain, Georgia, pleaded guilty last March to one count of deprivation of rights under color of law. According to court documents, Clark strangled a handcuffed arrestee into unconsciousness while processing her for intake at the Fulton County North Annex Jail. As part of his plea, Clark admitted that he knew the woman posed no threat to officers and knew that Sheriff’s Office policy prohibited placing detainees in chokeholds or neck restraints except in life-or-death situations.

“This defendant’s violent assault on a handcuffed arrestee rendered her unconscious and is simply inexcusable,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “As we have seen too many times, chokeholds and neck restraints can prove deadly. Using high-level force against a person in custody who poses no threat is plainly illegal, but using such a dangerous technique gratuitously is especially disturbing. The Justice Department is committed to holding law enforcement officers accountable for use of excessive force and to protecting the rights of people in custody.”

“Instead of carrying out his mission to ensure the safety and security of detainees in his custody at the Fulton County Jail, Clark abandoned his oath of office when he used excessive force to strangle a pre-trial detainee without cause,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “Law enforcement officers who violate their professional duties are not above the law. It is now Clark who will serve time in prison as a result of his reprehensible conduct.”

“Mr. Clark took a sworn oath as a detention officer to uphold the rights of others,” said Executive Assistant Director Michael A. Nordwall of the FBI’s Criminal, Cyber, Response, and Services Branch. “He violated that oath when he abused and strangled a female inmate. Today’s sentencing is a reminder that the FBI will relentlessly work to hold accountable anyone who takes an oath to protect others.”

The FBI Atlanta Field Office and Fulton County Sheriff’s Office’s Office of Professional Standards investigated the case.

Assistant U.S. Attorney Bret Hobson for the Northern District of Georgia and Trial Attorney Alec Ward of the Justice Department’s Civil Rights Division are prosecuting the case.

ATLANTA – Former Fulton County Detention Officer Monique Clark has been sentenced for using excessive force against a pretrial detainee at the Fulton County Jail.

“Instead of carrying out his mission to ensure the safety and security of detainees in his custody at the Fulton County Jail, Clark abandoned his oath of office when he used excessive force to strangle a pre-trial detainee without cause,” said U.S. Attorney Ryan K. Buchanan. “Law enforcement officers who violate their professional duties are not above the law. It is now Clark who will serve time in prison as a result of his reprehensible conduct.”

“This defendant’s violent assault on a handcuffed arrestee rendered her unconscious and is simply inexcusable,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “As we have seen too many times, chokeholds and neck restraints can prove deadly. Using high-level force against a person in custody who poses no threat is plainly illegal, but using such a dangerous technique gratuitously is especially disturbing. The Department of Justice is committed to holding law enforcement officers accountable for use of excessive force and to protecting the rights of people in custody.”

“By violating his sworn oath as a detention officer to protect people, Clark betrayed every honest, hardworking officer, and crossed the line to criminal behavior,” said Special Agent in Charge Keri Farley of the FBI Atlanta Field Office. “Let this sentence be a reminder that the abuse of inmates by prison staff will not be tolerated by the FBI and will always be pursued for prosecution.”

According to U.S. Attorney Buchanan, the charges, information presented in court and other public information: At the time of the crime, Monique Clark was employed as a detention officer at the Fulton County Jail. On June 5, 2023, while Clark was working at the North Jail Annex in Alpharetta, Georgia, he strangled a pretrial detainee without any legal justification. The detainee lost consciousness and suffered bodily injury as a result of the assault.

Monique Clark, 32, of Stone Mountain, Georgia, was sentenced by U.S. District Judge J.P. Boulee to four years in prison to be followed by three years of supervised release. He pleaded guilty to using excessive force on March 26, 2024.

This case was investigated by the Federal Bureau of Investigation.

Assistant U.S. Attorneys Bret R. Hobson and Department of Justice Civil Rights Division Trial Attorney Alec C. Ward prosecuted the case.

ATLANTA – Following a five-day trial, Sherlyn Sims, a/k/a “Sherlyn Dzinzi,” was found guilty by a jury of conspiring to launder, and laundering, proceeds generated from numerous romance fraud scams and business email compromise schemes. These computer-enabled crimes resulted in more than $1.2 million being diverted to bank accounts controlled by Sims, after which she quickly transferred, withdrew, and spent the funds.

“The fraud schemes that Sims perpetrated in this case have become an epidemic in this country,” said U.S. Attorney Ryan K. Buchanan. “Our vulnerable elderly population are often targeted in these crimes, resulting in significant financial loss and unimaginable emotional suffering. The jury’s verdict has ended Sims’s attempts to evade culpability for the role that she played in carrying out these schemes.”

“This case serves as a reminder of the sophisticated methods employed by criminals and the need for vigilance in the digital age,” said FBI Atlanta Special Agent in Charge Keri Farley. “The consequences of this type of fraud scheme are far-reaching, affecting not only people here in Georgia, but also around the world.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: Sherlyn Sims was charged with conspiracy and money laundering related to the receipt of funds stolen from dozens of victims between December 2019 and August 2020. Sims and her co-defendants registered sham businesses, including Grace Trading, LLC, a company Sims registered in the state of Georgia. Grace Trading and the other sham businesses had no legitimate earnings, did not have physical premises, and did not pay wages to employees.

Once the businesses were registered, business bank accounts were opened in the companies’ names at various financial institutions. For instance, two days after Grace Trading became registered with the Georgia Secretary of State, Sims opened business bank accounts at J.P. Morgan Chase Bank and Bank of America. Shortly after the accounts were opened, fraud victims were duped into depositing approximately $200,000 into Grace Trading’s bank accounts. Sims quickly wired the fraud proceeds to China and other foreign countries, withdrew cash from the accounts, and transferred or spent the remaining funds.

Over the following seven months, more than $1.2 million in fraud proceeds were deposited into these accounts from romance scams and business email compromise schemes.  One of the incidents involved a scam that tricked a victim into sending the earnest money deposit for the purchase of a new home to Sims’s Grace Trading account. Sims was not deterred when the banks closed Grace Trading’s accounts, as she would open a new bank account in the sham business’s name. Sims also used Grace Trading to obtain a fraudulent COVID-loan from the Small Business Administration.

Multiple romance fraud victims testified at trial. The victims recounted how they met male strangers online and were soon convinced they were in a romantic relationship with the men, even though the victims were in communication with the individuals for months without meeting in person. Often these men claimed that they wanted to start a life with the victims and were eager to live with them as soon as some kind of issue was resolved. For example, one romance fraud victim was persuaded to send nearly $100,000 to one of Sims’s accounts because her boyfriend (one of the men online) claimed that he was traveling to Boston but had been detained by customs officials and would not be released until his taxes were paid. This victim depleted her life savings and borrowed from friends and family trying to help the man pay his taxes and be released from detention.

Sherlyn Sims, a/k/a “Sherlyn Dzinzi,” 33, of Lawrenceville, Georgia, is scheduled to be sentenced on November 5, 2024, at 2:00 p.m. before U.S. District Judge Steve C. Jones. Sims was found guilty by a federal jury on July 31, 2024.

Co-defendant Bright Eigbedion, 36, of Kearns, Utah, is scheduled to be sentenced on August 29, 2024, at 10:00 a.m. before Judge Jones. Eigbedion was convicted of conspiracy to commit money laundering on March 27, 2024, after he pleaded guilty.

Co-defendant Presley Ihimekpen, 37, of Duluth, Georgia, was previously sentenced by Judge Jones on August 1, 2024, to five years in prison to be followed by three years of supervised release. He was also ordered to pay restitution to the victims. Ihimekpen was convicted of conspiracy to commit money laundering on March 27, 2024, after he pleaded guilty.

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

Assistant U.S. Attorneys Alex R. Sistla and Kelly K. Connors are prosecuting the case.

The U.S. Attorney’s Office for the Northern District of Georgia is part of the Department of Justice Transnational Elder Fraud Strike Force. The Strike Force focuses on investigating and prosecuting defendants associated with foreign-based fraud schemes that disproportionately affect American seniors.  These include romance scams, phone scams, mass-mailing fraud schemes, and tech-support fraud schemes.  For further information on these scams, see https://www.justice.gov/elderjustice/senior-scam-alert.

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 – Alvin Demar and Joshua Carter have been sentenced to federal prison for trafficking dozens of firearms that were later recovered from crime scenes in multiple states and Canada. Jamal Plunkett was sentenced for possessing one of the trafficked firearms.

“Firearm traffickers present an acute and dangerous threat to communities within and outside our district,” said U.S. Attorney Ryan K. Buchanan. “The sentencing of these defendants is an example of our office’s unwavering commitment to work with our federal, state, and local law enforcement partners to identify and dismantle gun trafficking operations, and to prosecute those who jeopardize the wellbeing of our communities by funneling firearms to criminals.”

“Identifying and disrupting firearms trafficking is one of ATF’s key missions,” said ATF Assistant Special Agent in Charge Alicia Jones. “These convictions and subsequent sentences send a clear message that firearm trafficking and the illegal possession and use of firearms will not be tolerated.”

According to U.S. Attorney Buchanan, the charges, and other information presented in court: Between July 2021 and January 2022, Alvin Demar, a convicted felon with convictions for drug trafficking and aggravated robbery, paid individuals, including Joshua Carter, to straw purchase dozens of handguns in the metro Atlanta area.  Demar then sold the straw-purchased weapons to other people who also trafficked them or used them in additional crimes.

The guns purchased and sold by Carter and Demar were recovered from crime scenes in Atlanta, Georgia; Baltimore, Maryland; the District of Columbia; Gainesville, Georgia; French Camp, California; Edmonton, Canada; and Toronto, Canada.  Some of the firearms were used in shootings before they were confiscated by law enforcement. For example, in November 2021, Carter purchased a Glock pistol that was linked to three shootings in Atlanta. Carter also purchased a Ruger pistol equipped with an extended magazine, and within two months of the purchase, Jamal Plunkett, a convicted felon, stole and discharged the pistol 17 times in Gainesville, Georgia.

Demar also illegally possessed numerous firearms for his own use.  For example, in December 2019, Demar was arrested by Atlanta police officers after a loaded Glock pistol was found in a vehicle he was driving. In November 2022, federal agents found another loaded Glock pistol in Demar’s bedroom, and they also seized a USAS-12 semiautomatic shotgun from his garage.  The USAS-12 is a large-bore, military-type assault shotgun with a 10- or 20-round magazine.  Under federal law, the USAS-12 is classified as a destructive device that must be registered in the National Firearms Registration and Transfer Record.  Due to his criminal history, Demar was prohibited from possessing firearms of any type.

Alvin Marvin Demar, 47, of Decatur, Georgia, was sentenced by U.S. District Judge Eleanor L. Ross to 15 years in prison to be followed by three years of supervised release.  Demar was convicted of two counts of possession of a firearm by a prohibited person, conspiracy to make false statements to a federally licensed firearms dealer, making a false statement to a federally licensed firearms dealer, and possession of an unregistered destructive device. He pleaded guilty to these charges on March 27, 2024.

Joshua Carter, 29, of McDonough, Georgia, was sentenced by Judge Ross to three years in prison to be followed by two years of supervised release on June 5, 2024.  Carter was convicted of conspiracy to make false statements to a federally licensed firearms dealer after he pleaded guilty on January 23, 2024.

Jamal Plunkett, 36, of Snellville, Georgia, was sentenced in a separate case on October 10, 2023, by U.S. District Judge Steve C. Jones. He is currently serving a sentence of four years, three months in federal prison to be followed by three years of supervised release. Plunkett was convicted of possession of a stolen firearm after he pleaded guilty on May 19, 2023.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the DeKalb County (Georgia) Police Department and Gainesville Police Department.

Assistant U.S. Attorney Theodore S. Hertzberg 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) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA - Kujo Duako and Sammetrius Brooks have been sentenced for a string of armed robberies that targeted multiple businesses and a bank in metro Atlanta.

“Duako and Brooks terrorized innocent victims and jeopardized their lives during this violent crime spree,” said U.S. Attorney Ryan K. Buchanan. “The men’s arrest and prosecution are an example of the excellent coordination that the FBI and our district’s local law enforcement partners routinely leverage to remove dangerous criminals from our communities.”

“Carrying weapons into peaceful places of business and terrorizing hard-working citizens is something the FBI and our law enforcement partners will make every effort to prosecute and punish,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “These sentences should be a warning to anyone who would consider armed robbery in our community, and hopefully bring some comfort to the victims that were affected during the commission of these crimes.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: On October 29, 2018, Duako attempted to rob a CVS store in the City of South Fulton, Georgia.  During the robbery, Duako pointed a semi-automatic handgun at an employee and ordered her to walk to the cash register. Rather than comply with Duako’s demand, the employee fled to the rear of the store and engaged a fire alarm, thwarting the robbery.

Later that day, Duako robbed a Dollar General store, also located in South Fulton. Again, he pointed a handgun at an employee and demanded cash. On this occasion, Duako stole cash and personal property from the employee.

On October 30, 2018, Duako and a co-defendant, Sammetrius Brooks, drove to various locations in metro Atlanta, including an IHOP restaurant and a Family Dollar store in South Fulton, a Sprint store in Riverdale, Georgia, a Metro PCS store in College Park, Georgia, and a United Community Bank branch in Fairburn, Georgia. Duako robbed each of these businesses at gunpoint, stealing cash and cell phones. Brooks acted as the getaway driver.

Less than two hours after the robbery at the United Community Bank, law enforcement apprehended Duako and Brooks. Law enforcement recovered more than $9,000 in cash in Duako’s possession – the approximate amount of money stolen during the five robberies on October 30, 2018. Police also recovered several cell phones that were taken during the robbery at the Sprint store.

 Kujo Duako, 35, of Ghana, West Africa, was sentenced by U.S. District Judge Jean-Paul “J.P.” Boulee on July 31, 2024, to 16 years in prison to be followed by three years of supervised release. Duako was convicted of robbery, conspiracy to commit robbery, possession of a firearm during a crime of violence, and armed bank robbery on April 24, 2024, after he pleaded guilty.

Sammetrius Brooks, 33, of Atlanta, Georgia, was sentenced by Judge Boulee on September 29, 2021, to 11 years, nine months in prison to be followed by three years of supervised release. Brooks was convicted of conspiracy to commit robbery, armed bank robbery, and possession of a firearm during a crime of violence on June 17, 2021, after he pleaded guilty.

This case was investigated by the Federal Bureau of Investigation, with valuable assistance from the Clayton County Police Department, South Fulton Police Department, Riverdale Police Department and Clayton County Sheriff’s Office.

Assistant U.S. Attorneys Johnny Baer and Joseph Plummer 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) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

ATLANTA – Sean Patrick Cirillo has pleaded guilty to transmitting interstate threats to injure U.S. Representative Marjorie Taylor Greene.

“Threatening to kill a public official is reprehensible,” said U.S. Attorney Ryan K. Buchanan. “Our office will not tolerate any form of violence, threats or intimidation against public officials. The prosecution of individuals who threaten the lives and welfare of public servants is a top priority for our office, as well as for our federal, state, and local law enforcement partners.”

“We will not normalize violent threats in America, whether targeting elected officials or average citizens,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Our democracy depends on the ability of members of Congress to do their jobs without fearing for their safety. We will continue to prosecute threats against public servants made in any form.”

According to U.S. Attorney Buchanan, the charges, and other information presented in court: On three occasions on November 8, 2023, Sean Patrick Cirillo called the Washington, D.C. office of U.S. Representative Marjorie Taylor Greene and spoke with her staffers.  During the calls, Cirillo made multiple threats, including the following:

•“I got a bead on her.  Like a sniper rifle.  A sniper rifle.  And I’m gonna kill her next week.  I’m gonna murder her;”

•“I’ll kill you too if you want;” and

•“You’re gonna die.  Your family is gonna die.”

Sean Patrick Cirillo, 34, of Atlanta, Georgia, pleaded guilty to one count of transmitting interstate threats. A sentencing date has not yet been scheduled.

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

Assistant U.S. Attorneys Bret R. Hobson and Brent Alan Gray are prosecuting the case.

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

Two foreign nationals pleaded guilty today to participating in the LockBit ransomware group—at various times the most prolific ransomware variant in the world—and to deploying LockBit attacks against victims in the United States and worldwide.

“Today’s convictions reflect the latest returns on the Department’s investment in disrupting ransomware threats, prioritizing victims, and holding cybercriminals accountable,” said Deputy Attorney General Lisa Monaco. “In executing our all-tools cyber enforcement strategy, we’ve dealt significant blows to destructive ransomware groups like LockBit, as we did earlier this year, seizing control of LockBit infrastructure and distributing decryption keys to their victims. Today’s actions serve as a warning to ransomware actors who would attack Americans: we will find you and hold you accountable.”  

“The defendants committed ransomware attacks against victims in the United States and around the world through LockBit, which was one of the most destructive ransomware groups in the world,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “But thanks to the work of the Computer Crime and Intellectual Property Section, along with its domestic and international partners, LockBit no longer claims that title. Today’s convictions represent another important milestone in the Criminal Division’s ongoing effort to disrupt and dismantle ransomware groups, protect victims, and bring cybercriminals to justice.”

According to court documents, Ruslan Magomedovich Astamirov (АСТАМИРОВ, Руслан Магомедовичь), 21, a Russian national of the Chechen Republic, Russia, and Mikhail Vasiliev, 34, a dual Canadian and Russian national of Bradford, Ontario, were members of LockBit. In the period between January 2020 and February 2024, LockBit grew into what was, at times, the most active and destructive ransomware group in the world. LockBit attacked more than 2,500 victims in at least 120 countries, including 1,800 victims in the United States. Those victims included individuals, small businesses, multinational corporations, hospitals, schools, nonprofit organizations, critical infrastructure, and government and law-enforcement agencies. LockBit’s members extorted at least approximately $500 million in ransom payments from their victims and caused billions of dollars in additional losses to victims, including costs like lost revenue and for incident response and recovery.

LockBit’s “affiliate” members, including Vasiliev and Astamirov, first identified and unlawfully accessed vulnerable computer systems, and then deployed LockBit ransomware on those systems to both steal and encrypt stored data. When LockBit attacks were successful, LockBit’s affiliate members then demanded ransoms from their victims in exchange for decrypting the victims’ data and then claiming to delete the affiliates’ copies of the data. When victims did not pay the demanded ransoms, LockBit’s affiliates often left the victim’s data permanently encrypted and publish the stolen data, including highly sensitive information, on a publicly accessible internet site under LockBit’s control.

“Astamirov and Vasiliev thought that they could deploy LockBit from the shadows, wreaking havoc and pocketing massive ransom payments from their victims, without consequence,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “They were wrong. We, in New Jersey, along with our domestic and international law enforcement partners will do everything in our power to hold LockBit’s members and other cybercriminals accountable, disrupt and dismantle their operations, and put a spotlight on them as wanted criminals—no matter where they hide.”

“Astamirov and Vasiliev were members of the LockBit ransomware group, which has caused severe harm around the globe by attacking computer systems in over a hundred countries damaging organizations ranging from government and law-enforcement agencies to hospitals and schools,” said FBI Deputy Director Paul Abbate. “Today’s plea shows our relentless and unwavering commitment to ensuring that cyber criminals are brought to justice for their actions. The FBI is proud of the international collaboration that led to these individuals being held accountable under the law for the damage their actions have caused.”

Between 2020 and 2023, Astamirov deployed LockBit against at least 12 victims, including businesses in Virginia, Japan, France, Scotland, and Kenya. Operating under the online aliases “BETTERPAY,” “offtitan,” and “Eastfarmer,” he extorted $1.9 million from those victims. As part of his plea agreement, Astamirov agreed to forfeit, among other assets, $350,000 in seized cryptocurrency that he extorted from one of his LockBit victims. Astamirov was first charged and arrested in this matter in June 2023.

Between 2021 and 2023, Vasiliev, operating under the online aliases “Ghostrider,” “Free,” “Digitalocean90,” “Digitalocean99,” “Digitalwaters99,” and “Newwave110,” deployed LockBit against at least 12 victims, including businesses in New Jersey, Michigan, the United Kingdom, and Switzerland. He also deployed LockBit against an educational facility in England and a school in Switzerland. Through these attacks, Vasiliev caused at least $500,000 in damage and losses to his victims. Vasiliev was first charged in this matter and arrested in Canada by Canadian authorities in November 2022, and extradited to the United States in June.

Astamirov pleaded guilty to a two-count information charging him with conspiracy to commit computer fraud and abuse and conspiracy to commit wire fraud. He faces a maximum penalty of 25 years in prison. Vasiliev pleaded guilty to a four-count information charging him with conspiracy to commit computer fraud and abuse, intentional damage to a protected computer, transmission of a threat in relation to damaging a protected computer, and conspiracy to commit wire fraud. He faces a maximum penalty of 45 years in prison. A sentencing date has not yet been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The LockBit Investigation

Today’s guilty pleas follow a recent disruption of LockBit ransomware in February by the U.K. National Crime Agency’s (NCA) Cyber Division, which worked in cooperation with the Justice Department, FBI, and other international law enforcement partners. As previously announced by the Department, authorities disrupted LockBit by seizing numerous public-facing websites used by LockBit to connect to the organization’s infrastructure and by seizing control of servers used by LockBit administrators, thereby disrupting the ability of LockBit actors to attack and encrypt networks and extort victims by threatening to publish stolen data. This disruption succeeded in greatly diminishing LockBit’s reputation and its ability to attack further victims, as alleged by documents filed in this case.

Today’s guilty pleas also follow prior announcements of charges brought in the District of New Jersey against four other LockBit members, including its alleged creator, developer, and administrator, Dmitry Yuryevich Khoroshev. According to an indictment unsealed in May, Khoroshev allegedly acted as the group’s administrator from as early as September 2019 through 2024. In that role,  Khoroshev recruited new affiliate members, spoke for the group publicly under the alias “LockBitSupp,” and developed and maintained the infrastructure used by affiliates to deploy LockBit attacks. Khoroshev also took 20% of each ransom paid by LockBit victims, allowing him to personally derive at least $100 million over that period. Khoroshev is currently the subject of a reward of up to $10 million through the U.S. Department of State’s Transnational Organized Crime (TOC) Rewards Program, with information accepted through the FBI tip website at https://tips.fbi.gov/home.

Other charges against LockBit members include the following:

• In February 2024, in parallel with the disruption operation, an indictment was unsealed in the District of New Jersey charging Russian nationals Artur Sungatov and Ivan Kondratyev, also known as Bassterlord, with deploying LockBit against numerous victims throughout the United States, including businesses in the manufacturing and other industries, as well as victims around the world in the semiconductor and other industries.
• In May 2023, two indictments were unsealed in Washington, D.C., and the District of New Jersey charging Mikhail Matveev, also known as Wazawaka, m1x, Boriselcin, and Uhodiransomwar, with using different ransomware variants, including LockBit, to attack numerous victims throughout the United States, including the Washington, D.C., Metropolitan Police Department. Matveev is currently the subject of a reward of up to $10 million through the U.S. Department of State’s TOC Rewards Program, with information accepted through the FBI tip website at tips.fbi.gov/.

The U.S. Department of State’s TOC Rewards Program is also offering rewards of:

• Up to $10 million for information leading to the identification and location of any individuals who hold a key leadership position in LockBit; and
• Up to $5 million for information leading to the arrest and/or conviction in any country of any individual participating or attempting to participate in LockBit.

Information is accepted through the FBI tip website at www.tips.fbi.gov/.

Khoroshev, Matveev, Sungatov, and Kondratyev have also been designated for sanctions by the Department of the Treasury’s Office of Foreign Assets Control for their roles in launching cyberattacks.  

Victim Assistance

LockBit victims are encouraged to contact the FBI and submit information at https://lockbitvictims.ic3.gov/. As announced by the Department in February, law enforcement, through its disruption efforts, has developed decryption capabilities that may enable hundreds of victims around the world to restore systems encrypted using the LockBit ransomware variant. Submitting information at the IC3 site will enable law enforcement to determine whether affected systems can be successfully decrypted.

LockBit victims are also encouraged to visit www.justice.gov/usao-nj/lockbit for case updates and information regarding their rights under U.S. law, including the right to submit victim impact statements and request restitution, in the litigation against Astamirov and Vasiliev.

The FBI Newark Field Office, under the supervision of Special Agent in Charge James E. Dennehy, is investigating the LockBit ransomware variant. The FBI Atlanta Field Office, under the supervision of Special Agent in Charge Keri Farley; U.S. Attorney’s Office for the Northern District of Georgia; Ontario Provincial Police in Ontario, Canada; and Crown Attorney’s Office in Toronto, Canada, provided significant assistance in the Vasiliev matter. The United Kingdom’s NCA; France’s  Gendarmerie Nationale Cyberspace Command and Cyber Division of the Paris Prosecution Office; Germany’s Landeskriminalamt Schleswig-Holstein and the Bundeskriminalamt; Switzerland’s Federal Office of Justice and Police, Public Prosecutor’s Office for the Canton of Zurich, and Zurich Cantonal Police; Japan’s National Policy Agency; Australian Federal Police; Sweden’s Polismyndighetens; Royal Canadian Mounted Police; Politie Dienst Regionale Recherche Oost-Brabant of the Netherlands; Finland’s Poliisi; Europol; and Eurojust have provided significant assistance and coordination in both matters and in the LockBit investigation generally.

Trial Attorneys Jessica C. Peck, Debra Ireland, and Jorge Gonzalez of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorneys Andrew M. Trombly, David E. Malagold, and Vinay Limbachia for the District of New Jersey are prosecuting the charges against Astamirov and Vasiliev.

The Justice Department’s Cybercrime Liaison Prosecutor to Eurojust, Office of International Affairs, and National Security Division’s National Security Cyber Section also provided significant assistance.

Additional details on protecting networks against LockBit ransomware are available at StopRansomware.gov. These include Cybersecurity and Infrastructure Security Agency Advisories AA23-325A, AA23-165A, and AA23-075A.       

ATLANTA – John Woodbury has been indicted on federal charges of transmitting interstate threats to injure FBI Director Christopher Wray and others. 

 “Sending threats to physically harm a public official in an attempt to thwart the administration of justice is a criminal offense,” said U.S. Attorney Ryan K. Buchanan. “Director Wray and other law enforcement officials work tirelessly to safeguard our freedoms and to protect our citizens from harm. Threats against such public servants, who have dedicated themselves to enforcing our criminal laws, is especially heinous.  Our office will remain steadfast in helping to ensure that public officials are able to carry out their duties free from fear or intimidation.”

According to U.S. Attorney Buchanan, the indictment, and other information presented in court: On June 7, 2023, Woodbury allegedly posted a message on 4chan.org that threatened violence against FBI Director Wray and others.  In his message, Woodbury made statements that included the following: “Let’s show them what a [expletive] ‘Nazi’ […] looks like […]. It’s time to burn these [expletive] down and hang them from trees. Hit them where it [expletive] hurts. Hit Chris at his home. Make his family fear stepping one foot outside their [expletive] door.”  

John Woodbury, 34, of Roswell, Georgia was arrested and arraigned today before U.S. Magistrate Judge Catherine M. Salinas. Woodbury was indicted by a federal grand jury on July 9, 2024. Members of the public are reminded that the indictment only contains charges.  The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.

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

Assistant U.S. Attorneys Matthew S. Carrico and Jennifer Keen 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 - Teresa Carter and Sharon Crowder have been sentenced for theft of government funds for their unlawful receipt of Social Security benefits intended for relatives, who died years earlier.

“Carter and Crowder chose to assume the responsibility of acting on behalf of loved ones as the recipients of their relative’s Social Security benefits,” said U.S. Attorney Ryan K. Buchanan. “Then they concealed the deaths of their relatives and knowingly and unlawfully continued to receive these government funds to which they were not entitled.  The defendants’ prosecution and sentence should place others on notice that stealing money from the government and taxpayers is a serious offense.”

“As representative payees, these defendants had a responsibility to report the death of the beneficiary, rather they falsified information to the Social Security Administration (SSA) and wrongfully converted funds to their own use, which is a crime. These sentences demonstrate that we will continue to investigate representative payees who misappropriate funds issued by the SSA,” said Rodregas W. Owens, Special Agent in Charge, SSA Office of the Inspector General, Atlanta Field Division. “I want to thank the U.S. Attorney’s Office and Special Assistant U.S. Attorney Diane C. Schulman for their work in this case.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: Teresa Carter was the representative payee for her father’s Social Security benefits. As the representative payee, she was required to spend all of his monthly benefits on his behalf and submit annual reporting statements to the SSA that documented any changes in his condition. Carter’s father died on July 17, 2006.  Rather than report his death to the SSA, Carter continued to submit annual reporting statements to the SSA in which she falsely stated that her father was still alive.

In March 2023, when SSA investigators interviewed Carter, she admitted that her father had died and that she had submitted false statements after his death to continue to receive the benefits. But she falsely claimed that a Social Security employee told her to lie on the annual reporting form so that she could continue to receive the benefits which she falsely claimed were pension benefits from a private pension fund. In total, Carter stole over $130,000 in government funds.

Sharon Crowder acted as the representative payee for her brother’s Social Security benefits. Her brother died on September 10, 2009. Like Carter, Crowder did not report her brother’s death to the SSA. Instead, she submitted annual reporting statements to the SSA in which she falsely stated that her brother was still alive. When confronted by investigators in August 2023 about this deception, Crowder admitted that she submitted the false statements to the SSA and spent the funds knowing that she was not entitled to receive them.  In total, Crowder stole more than $139,000 in government benefits.

Teresa Carter, 66, of Atlanta, Georgia, was sentenced by U.S. District Judge Michael L. Brown two years of probation with the first 90 days to be served on home confinement. She was also ordered to pay restitution in the amount of $130,182.90. Carter was convicted of this charge on March 7, 2024, after she pleaded guilty.

Sharon R. Crowder, 55, of Atlanta, Georgia, was sentenced by Judge Brown to four years of probation with the first six months to be served on home confinement. She was also ordered to pay restitution in the amount of $139,656.00. Crowder was convicted of this charge on March 12, 2024, after she pleaded guilty.

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

Special Assistant U.S. Attorney Diane C. Schulman prosecuted the case.

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

ATLANTA - John Oxendine, the former Georgia Insurance Commissioner, was sentenced to three and a half years in prison for conspiracy to commit healthcare fraud in connection with unnecessary lab testing.

“Oxendine abused his position as the former Georgia Insurance Commissioner by undermining the integrity of the state’s healthcare system when he conspired with a physician to order hundreds of unnecessary and costly lab tests,” said U.S. Attorney Ryan K. Buchanan. “This case demonstrates our office’s commitment to work with our law enforcement partners to hold individuals accountable who prioritize personal greed at the expense of the public’s trust.”

“John Oxendine was motivated more by personal greed than his duty to patients and the citizens of Georgia whom he used to represent,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Not only did the former state insurance commissioner line his pockets off the unnecessary tests, but he also directed another to lie to federal agents to try and cover up the fraud. The FBI will continue to investigate healthcare fraud to ensure those who abuse the system are brought to justice.”

“The sentence imposed today reaffirms our commitment to protecting the integrity of our nation’s health insurance programs from those who illegally profit through fraudulent activities,” said Tamala E. Miles of the United States Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will continue to work closely with our federal law enforcement partners to bring bad actors who defraud our programs to justice.”

“Today’s sentencing should serve as a strong deterrent to those in positions of power who seek to exploit and defraud TRICARE, the military’s healthcare system relied on by our service members, retirees, and their families,” said Special Agent in Charge Darrin K. Jones, Department of Defense (DoD) Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office.  “DCIS and our law enforcement partners will aggressively investigate allegations of healthcare fraud that put DoD personnel and their families at risk.”

 According to U.S. Attorney Buchanan, the charges and other information presented in court: John Oxendine conspired with Dr. Jeffrey Gallups and others to submit fraudulent insurance claims for medically unnecessary Pharmacogenetic, Molecular Genetic, and Toxicology testing.  Physicians associated with Dr. Gallups’ ENT practice were pressured to order these medically unnecessary tests from Next Health, a lab in Texas.  As part of Oxendine’s healthcare fraud scheme, Next Health agreed to pay Oxendine and Dr. Gallups a kickback of 50 percent of the net profit for eligible specimens submitted by Dr. Gallups’ practice to the lab company.

In connection with the scheme, Oxendine gave a presentation at the Ritz Carlton in Buckhead, Georgia where he pressured doctors in Dr. Gallups’ practice to order the unnecessary tests. Next Health later submitted insurance claims seeking more than $3 million in payments from private health insurers for the unnecessary tests. The insurance companies paid more than $750,000 to Next Health because of these fraudulent claims. Next Health then paid $260,000 in kickbacks to Oxendine and Dr. Gallups. Some patients were also charged for the tests, receiving bills of up to $18,000.

To conceal the kickback payments, Oxendine and Dr. Gallups arranged for the payments to be made from Next Health to Oxendine Insurance Services, Oxendine’s insurance consulting business. Oxendine used a portion of the kickback money to pay a $150,000 charitable contribution and $70,000 in attorney’s fees for Dr. Gallups.

When a compliance officer at Dr. Gallups’ practice raised concerns about the kickbacks, Oxendine told Dr. Gallups to lie and say the payments were loans. He also directed Dr. Gallups to repeat the lie after he was questioned by federal agents about Next Health. When Oxendine was interviewed about Next Health by the Atlanta Journal-Constitution in connection with a private lawsuit, he falsely denied working with the lab company or receiving money from the business.

John W. Oxendine, 62, of Port St. Joe, Florida, was sentenced by U.S. District Judge Steve C. Jones to three years, six months in prison to be followed by three years of supervised release. He was also ordered to pay restitution in the amount of $760,175.34, and a $25,000 fine. Oxendine was convicted on these charges on March 22, 2024, after he pleaded guilty.

This case is related to United States v. Gallups, criminal no. 1:21-cr-00370-SCJ, in which Dr. Jeffrey Gallups pleaded guilty to health care fraud and was sentenced to 33 months in prison.

This case was investigated by the Federal Bureau of Investigation, Department of Health and Human Services, Office of the Inspector General, and Defense Criminal Investigative Service.

Assistant U.S. Attorneys Christopher J. Huber and David A. O’Neal prosecuted the case.

A video statement by U.S. Attorney Ryan K. Buchanan can be found here. 

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.

NEWNAN, Ga. – Drevion Evans has been sentenced to federal prison for possessing semiautomatic Glock pistols that were illegally converted to function as fully automatic machineguns, and for attempting to deliver one of those machineguns to his home, along with a pound of marijuana.

“Machinegun conversion devices, commonly known as ‘switches,’ are classified as illegal machineguns under federal law,” said U.S. Attorney Ryan K. Buchanan. “This investigation and subsequent prosecution demonstrate the high priority given by our office, and our federal, state, and local law enforcement partners, to removing these dangerous devices from criminals.”

“One of ATF’s top priorities is to deny criminals access to firearms and protect the rights of law-abiding citizens,” said ATF Assistant Special Agent in Charge Alicia Jones. “The offender illegally possessed firearms that subsequently could have been used against our citizens and our communities; ATF takes this very seriously.”

“I am glad the Chamblee Police Department was a major partner in assisting the U.S. Attorney’s Office with removing another armed and dangerous individual from the streets of our community,” said Chamblee Police Chief Michael Dieppa. “Our primary goal is to uphold justice and maintain the safety and trust of our community.”

“This arrest is only one example of the many benefits of having a valued partnership with our local, state, and federal partners,” stated Chief Mirtha V. Ramos, DeKalb County Police Department. “By working collaboratively, we will continue to reduce crime and violence in our community.”

 According to U.S. Attorney Buchanan, the charges and other information presented in court: On August 15, 2022, a police officer on patrol in Chamblee, Georgia attempted to stop a vehicle driven by Drevion Evans. In response, Evans put his vehicle in reverse and attempted to flee. Evans was ultimately arrested, after which a search of his car revealed a .40 caliber pistol on the driver’s side floorboard. The pistol was loaded with an extended magazine and had been converted to fire automatically. Evans had no prior arrest history and was released from custody on a bond.

On October 20, 2023, Evans attempted to arrange the delivery of a second fully automatic pistol with an extended magazine to his home by hiring an Uber driver to collect a package from a Carroll County, Georgia store. The driver picked up the package but delivered it to the Carrollton Police Department after noticing an odor of marijuana emanating from the package. Police officers searched the package and discovered 16 one-ounce bags of marijuana and the loaded, illegally modified pistol (which had been reported stolen).

Ten days later, police officers in DeKalb County, Georgia saw Evans’s vehicle and stopped him for outstanding warrants issued by a judge in Carroll County. While detaining Evans, one of the officers observed a 9mm pistol with an extended magazine on the floorboard in front of the driver’s seat. This third firearm was also equipped with a machinegun conversion device.

Drevion Micah Evans, 24, of Lithonia, Georgia, was sentenced by Chief U.S. District Judge Timothy C. Batten, Sr. to six years, six months in prison to be followed by five years of supervised release. Evans pleaded guilty to three counts of possession of a machinegun and one count of possession of a firearm in furtherance of a drug trafficking crime on January 10, 2024.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Carrollton Police Department, Chamblee Police Department, and DeKalb County Police Department.

Assistant U.S. Attorney Theodore S. Hertzberg 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.

GAINESVILLE, Ga. - Mitchell Simpson, who orchestrated a $3 million scheme to defraud companies that provided floor-plan financing to his used-car dealership, has pleaded guilty to wire fraud.

“This defendant abused the trust of the companies that loaned him money to operate his car dealership,” said U.S. Attorney Ryan K. Buchanan. “We will continue to prosecute individuals motivated by greed who use illegal practices to deceive unsuspecting businesses.”

“Simpson deceived the lenders who placed their trust in him and now he will be held accountable for his greed,” said Mitchell Jackson, Senior Supervisory Special Agent, of FBI Atlanta’s Gainesville Office. “As this conviction demonstrates, the FBI will not tolerate anyone who fraudulently steals or takes money that they did not earn.”

According to U.S. Attorney Buchanan, the charges and other information presented in court:  From early 2012 through early 2019, Simpson operated Mitch Simpson Motors, a used car dealership in Cleveland, Georgia. Three floor-plan lenders, Dealer Financial Holdings LLC, Americash Advance, Inc., and Floorplan Xpress, LLC-OK, each provided Simpson with a revolving line of credit, also known as floor-plan financing, so that Simpson could purchase an inventory of vehicles to re-sell to customers. Each line of credit was governed by a written contract, also known as a floor-plan financing agreement. Simpson was required to abide by the terms and conditions of the agreements, and he was required to provide the floor-plan lenders with complete and truthful information concerning all matters related to the agreements.

When Simpson wanted to borrow money to purchase a vehicle to add to his dealership’s inventory, he would contact one of the floor-plan lenders and provide that lender with a description of the vehicle, including the vehicle identification number, and the amount of the loan requested. If the vehicle was subject to any other liens or security interests, Simpson was required to disclose that fact to the floor-plan lender. If Simpson led the lender to believe that the vehicle was not subject to any other liens or security interests, the lender would transfer the requested funds to Simpson’s custody and control. In return for the loan, the dealership would grant the floor-plan lender a purchase-money security interest in the vehicle. Simpson was required to keep the vehicle free from all other liens and security interests until sold.

Simpson defrauded the floor-plan lenders by using a single vehicle as collateral for more than one floor-plan loan, which is a deceptive and illegal practice referred to in the used-car industry as double floor-planning and triple floor-planning –a practice expressly prohibited by the floor-plan financing agreements.

To hide the double and triple floor-planning, Simpson made false and misleading statements and omitted material facts in his communications with the floor-plan lenders. Also, whenever Simpson sold a vehicle in which one of the floor-plan lenders held a security interest, Simpson was required to hold the proceeds from the sale of that vehicle in trust for the secured lender and promptly pay the secured lender all amounts due under the applicable floor-plan financing agreement.

But Simpson did not always pay the floor-plan lenders, as required. In addition, he played a shell game with vehicle titles and did not always provide truthful information to lenders concerning the location of vehicles and concerning whether vehicles had been sold. This is an illegal practice referred to in the used-car industry as operating “out of trust,” which was expressly prohibited by the floor-plan financing agreements. Simpson’s fraudulent scheme resulted in a loss of more than $3 million to the floor-plan lenders.

Sentencing for Mitchell C. Simpson, 56, of Cornelia, Georgia, is scheduled for October 8, 2024, at 11:00 a.m. before U.S. District Judge Steve C. Jones in Gainesville, Georgia.

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

Assistant U.S. Attorneys John Russell Phillips and David A. O’Neal 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 – Teldrin Foster, John Gaines, and Carla Jackson have been sentenced for their roles in a scheme to steal Paycheck Protection Program (“PPP”) funds during the COVID-19 pandemic. To date, a total of 23 individuals have been convicted and sentenced in connection with the fraudulent scheme.

“Foster, Gaines, and Jackson, together with 20 other defendants who have already been sentenced for their participation in this criminal scheme, took advantage of a relief program designed to keep small businesses afloat during the COVID-19 pandemic,” said U.S. Attorney Ryan K Buchanan. “These defendants have been held accountable for depriving this program of funds desperately needed by some of the most vulnerable in our society. And their sentences send a clear message that fraud against the government will not be tolerated.”   

“COVID-19 disaster relief loans were issued by the government to help businesses struggling to survive during a pandemic, not to use for personal pleasures like these defendants used them for,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI will continue to hold accountable those who abused taxpayer dollars and diverted them from citizens who desperately needed them.”  

“Those who took advantage of the COVID-19 pandemic relief programs are realizing from these sentences that even after four years since Congress enacted them, they are still being held accountable,” said Demetrius Hardeman, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “IRS Criminal Investigation special agents will continue investigating and forwarding for prosecution to the U.S. Attorney’s Office those who committed fraud against the government.”

According to U.S. Attorney Buchanan, the second superseding indictment, and other information presented in court: From April 2020 through August 2020, Foster worked with co-defendant Darrell Thomas and others to fraudulently obtain at least 14 fraudulent loans. Each of the 14 businesses obtained a PPP loan between $700,000 and $850,000, for a total of over $11 million. The loan applications certified that: each applicant’s business was in operation on February 15, 2020, and had employees for whom it paid salaries and payroll taxes or paid independent contractors; the funds would be used to retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments; and the information provided in the application and in all supporting documents and forms was true and accurate in all material respects.

The PPP loan applications reported that each business maintained between 59 and 69 employees and generated approximately $295,000 to $342,000 in average monthly payroll expenses. To support these payroll figures, each business’s loan application was accompanied by an Internal Revenue Service Form 941, which employers use to report quarterly payroll taxes, for each quarter of 2019 and by a bank statement or a spreadsheet reflecting payroll expenses. In fact, none of the businesses had employees or incurred payroll expenses. The Form 941s, bank statements, and W2 payroll spreadsheets were all fabricated. Some of the supporting documents the businesses submitted were substantively identical, including the Form 941s, bank statements, and W2 payroll spreadsheets – where the reported figures were identical but purported employee names had been changed.

Gaines worked with co-defendant Thomas and others to obtain a fraudulent PPP loan in the amount of $806,710, for a Georgia business called Gaines Reservation and Travel. But that business had no employees or payroll expenses. To support the fraudulent PPP loan application, Gaines provided Thomas with fabricated bank statements for Gaines Reservation and Travel that reflected fake payroll deductions. After the PPP loan was approved, the funds were deposited into an account controlled by Gaines. Gaines later directed payments to Thomas that were disguised as payments for rent and payroll, which are approved expenses under the PPP.

Jackson laundered some of the proceeds of Gaines Reservation and Travel’s PPP loan, receiving over $300,000 of the stolen PPP funds into her business’s bank account. The funds were transferred via a check in the amount of $155,252.50 and a wire transfer in the amount of $179,985.72. The check falsely claimed that the funds were provided to Jackson as consulting fees and daily business management, and the wire transfer documentation falsely stated that the funds were for payroll services. In actuality, Jackson was assisting Gaines in concealing the stolen PPP funds from detection and seizure by federal law enforcement.

U.S. District Judge Jean-Paul “J.P.” Boulee sentenced the defendants as follows:

• Teldrin Foster, 42, of Atlanta, Georgia, was sentenced to 10 years and one month in prison, to be followed by three years of supervised release. He was also ordered to pay restitution in the amount of $9,606,627. On February 15, 2024, he was convicted by a jury of six counts of conspiracy to commit bank fraud and wire fraud, eight counts of conspiracy to commit wire fraud, six counts of bank fraud, fourteen counts of wire fraud, six counts of making false statements to a federally insured financial institution, and one count of money laundering.

• John Gaines, 59, of Marietta, Georgia, was sentenced to five years and three months in prison, to be followed by three years of supervised release. He was also ordered to pay restitution in the amount of $806,710. On January 31, 2024, he pleaded guilty to one count of money laundering.

• Carla Jackson, 56, of Tucker, Georgia, was sentenced to three years in prison, to be followed by two years of supervised release. She was also ordered to pay restitution in the amount of $335,238. On February 15, 2024, she was convicted by a jury of two counts of money laundering.

To date, a total of 24 individuals have been charged in connection with the fraudulent scheme. Twenty other individuals have pleaded guilty and been sentenced, while one defendant’s charges remain pending.

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

Assistant U.S. Attorneys Tal Chaiken, Samir Kaushal, Nathan Kitchens, and Norman Barnett of the Northern District of Georgia and Trial Attorney Siji Moore of the Criminal Division’s Fraud Section are prosecuting 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 – Marcello Banes, Chairman of the Newton County Board of Commissioners, and Stephanie Lindsey, a real estate broker and attorney, have been indicted by a federal grand jury for conspiring to launder money obtained from wire fraud and honest services wire fraud.

“By allegedly laundering proceeds obtained from a fraud conspiracy, these defendants violated the trust placed in them by their client, their constituents, and their fellow commissioners,” said U.S. Attorney Ryan K. Buchanan. “Public officials who undermine the public’s faith in our institutions by abusing their power for personal gain must be held accountable.”

“Banes and Lindsey undermined the public’s confidence in government and business in Georgia,” said FBI Atlanta Special Agent in Charge Keri Farley. “This indictment is a stern warning that anyone who violates our laws will be brought to face justice.”

“This is a case of a public official breaking the public’s trust to enrich himself and a realtor who did not serve her client, but instead, assisted the public official in breaking the law,” said Demetrius Hardeman, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “Criminal Investigation special agents, our law enforcement partners, and the U.S. Attorney’s office are working together to hold those who break the law accountable.”

According to U.S. Attorney Buchanan, the indictment, and other information presented in court: In 1999, Jasper, Morgan, Newton, and Walton Counties established a Joint Development Authority (JDA) to create an industrial area to attract industries to bring jobs and investment to the region. The JDA is controlled by an eight-member board of directors, with two members from each of the four counties. Marcello Banes, as the Chairman of the Newton County Board of Commissioners, represented Newton County on the JDA.

In 2018, a company identified in the indictment as “Company A” expressed an interest in purchasing approximately 40 acres of the JDA’s land for commercial development. Banes responded to Company A’s interest in the parcel by coordinating a brokerage agreement between Company A and Lindsey by which Company A would pay Lindsey’s CSL Realty Group (CSL) $150,000 upon completion of Company A’s purchase of the parcel.

The indictment alleges that at the time Company A entered this brokerage agreement, Banes and Lindsey misled Company A into believing that the commission was only intended for Lindsey. Neither Banes nor Lindsey disclosed to Company A that Lindsey would pay most of the commission -- which was contingent on the JDA voting to approve the sale -- to Banes. Had Company A’s owners known Banes would receive any of the commission, they would not have entered the brokerage agreement.

At a JDA board meeting on January 22, 2019, Banes voted along with other JDA members to pass a resolution authorizing the transfer of the parcel, which allowed the purchase of the land by Company A. Banes allegedly never disclosed to the JDA that, upon Company A’s acquisition of the land, Company A would pay $150,000 to Lindsey, who would funnel most of the payment to Banes.

Company A’s purchase was finalized on March 1, 2019. Although Lindsey was not present at the closing and neither she nor CSL were referenced in the closing documents, Lindsey contacted Company A the next day to collect the $150,000 payment. Shortly after receiving the payment, Lindsey allegedly passed $100,000 of it to Banes through a newly formed business entity they created. Banes used a substantial amount of that payment for a new house he was building in Newton County.

In addition to the money laundering offense, Lindsey is charged with two federal tax violations which allege that she filed two federal income tax returns for 2019 in which she claimed false business deductions to reduce her tax liability for the $150,000 payment.

Banes is also charged with lying to FBI special agents during a 2023 interview. The indictment alleges that he falsely told FBI agents that he was unaware Lindsey was involved as a broker for the sale of the land to Company A.

Marcello C. Banes, 48, and Stephanie R. Lindsey, 52, both of Covington, Georgia, were charged with conspiracy to launder money obtained from wire fraud and honest services wire fraud, and with money laundering. The grand jury also indicted Lindsey for federal income tax fraud and Banes for making materially false statements to FBI special agents.

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

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

Assistant U.S 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) 581-6016. 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. – Yunior Hernandez a/k/a “Yunior Hernandez Guzman,” Roberto Quesada Lopez, Carlos Alberto Valdes, and Yubani Millares Vera have been sentenced to prison for multiple cargo thefts throughout the Southeastern United States totaling more than $1.7 million.

“Thefts of interstate shipments disrupt the production and delivery of needed goods and result in detrimental financial impact on businesses, consumers, and the U.S. economy generally,” said U.S. Attorney Ryan K. Buchanan. “The sentencing of these defendants is an example of our office’s commitment to prosecute these criminals as well as a warning to others that these offenses are an investigative priority for our federal, state, and local law enforcement partners.”

“The FBI takes cargo theft very seriously, due to the significant impact it has on the United States economy, and the potential for stolen goods to be used to fund other criminal organizations,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “This theft conspiracy did not stop at our state border, and neither did our investigation. Thanks to our partnership with Miami agencies, we tracked these thieves across the entire southeast, and now they will be held accountable for their crimes.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: Throughout 2019, the defendants, Yunior Hernandez, Roberto Quesada Lopez, Carlos Alberto Valdes, and Yubani Millares Vera, operated a cargo theft ring throughout the Southeastern United States. In total, the defendants stole cargo worth more than $1.7 million. The stolen goods were then taken to Florida and sold. 

The defendants stole over:

•$500,000 worth of computers in Macon, Georgia, on May 18, 2019;

•$640,000 worth of computers meant for the Centers for Disease Control in Emerson, Georgia, on June 11, 2019;

•$110,000 worth of copper in Denmark, Tennessee, on July 21, 2019;

•$110,000 worth of copper in Glade Springs, Virginia, on September 2, 2019;

•$110,000 worth of copper in Fairview, Tennessee, on October 6, 2019; and

•$340,000 worth of apparel in Kingsland, Georgia, on November 16, 2019.

Yunior Hernandez, 50, of Homestead, Florida, was sentenced to two years, nine months in prison to be followed by three years of supervised release. He was also ordered to pay $880,857.43 in restitution. Hernandez was convicted of conspiracy on December 20, 2022, after he pleaded guilty.

Carlos Alberto Valdes, 55, of Hialeah, Florida, was sentenced to three years, 10 months in prison to be followed by three years of supervised release. He was ordered to pay $1,543,890.60 in restitution. Valdes was convicted of conspiracy on January 19, 2023, after he pleaded guilty.

Roberto Quesada Lopez, 44, of Hialeah, Florida, was sentenced to two years, six months in prison. He was ordered to pay $1,229,888.32 in restitution. Lopez was convicted of conspiracy on July 18, 2023, after he pleaded guilty.

Yubani Millares Vera, 49, of Hialeah, Florida, was sentenced to five years in prison to be followed by three years of supervised release. He was ordered to pay at least $1,760,479.12 in restitution. Millares Vera was convicted of conspiracy on March 14, 2024, after he pleaded guilty.

This case was investigated by the Federal Bureau of Investigation. Assistance was provided by the Miami-Dade County Police Department, Economic Crime Bureau, and the Federal Bureau of Investigation Miami Field Office.

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 - The United States Attorney’s Office entered into a settlement agreement with Fulton County Schools in Georgia to resolve an investigation of the district’s response to an escalating series of student-on-student sexual assaults on a school bus serving students with special needs. The United States conducted its investigation under Title IX of the Education Amendments of 1972, Title II of the Americans with Disabilities Act (ADA), and the Equal Educational Opportunities Act of 1974.

“Children with disabilities can be especially vulnerable and deserve to thrive in a learning environment free of violence of any kind, including when traveling to and from school aboard buses,” said U.S. Attorney Ryan K. Buchanan. “We applaud the school district’s willingness to cooperate with our investigation and to amicably resolve this matter to ensure the protection and safety of these children.” 

“A school district’s responsibility is to protect its students, particularly students whose disabilities make them especially vulnerable,” said Assistant Attorney General Kristen Clarke of the Civil Rights Division. “As a result of the agreement reached today, Fulton County Schools will work to ensure that all students are safe on their school buses, and that bus drivers and monitors are trained to watch for and prevent sexual harassment and assault. Schools have a responsibility to address barriers to reporting sexual assault and to effectively investigate reports, taking into account the special needs or vulnerabilities of any affected students and their families. The Civil Rights Division will hold schools accountable to this critical obligation.”

The United States’ investigation found that the district lacked adequate procedures and failed to train employees in the proper reporting of and response to student-on-student sexual harassment and assault; failed to appropriately accommodate the special needs of students with disabilities in preventing and responding to sexual assault; and failed to make the reporting and complaint process accessible for parents and guardians with limited English proficiency. This agreement will strengthen the district’s policies and procedures for responding to student-on-student sexual assault and ensure that the district’s response accounts for the unique needs of students with disabilities and Limited English Proficient parents.

As a part of the settlement, the school district, among other actions, agrees to:

•revise its policies for responding to complaints of sexual misconduct;

•provide appropriate district personnel with training on student-on-student sexual misconduct, including the vulnerabilities unique to students with disabilities;

•ensure it provides students with disabilities the accommodations they need to participate in the district’s educational programs, particularly accommodations that support the communication needs of students with disabilities; and

•afford appropriate language assistance services to Limited English Proficient parents and guardians.

The U.S. Attorney’s Office for the Northern District of Georgia worked in collaboration with the Department of Justice’s Civil Rights Division’s Educational Opportunities Section to investigate this case. Aileen Bell Hughes, Deputy Chief, Public Integrity and Civil Rights Section was the lead attorney for the district in this matter.

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

The Justice Department announced today a settlement agreement with Fulton County Schools in Georgia to resolve the department’s investigation of the district’s response to an escalating series of student-on-student sexual assaults on a school bus serving students with special needs. The department conducted its investigation under Title IX of the Education Amendments of 1972, Title II of the Americans with Disabilities Act (ADA) and the Equal Educational Opportunities Act of 1974.

“A school district’s responsibility is to protect its students from sexual assault and harassment, particularly students whose disabilities make them vulnerable,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Schools have a responsibility to address obstacles in reporting sexual assault and to take into account the special needs or vulnerabilities of any affected students and their families. The Justice Department will continue working to ensure that our schools are safe learning environments free from sexual harassment and equitable for students with disabilities.”

“Children with disabilities can be especially vulnerable and deserve to thrive in a learning environment free of violence of any kind, including when traveling to and from school aboard buses,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “We applaud the school district’s willingness to cooperate with our investigation and to amicably resolve this matter to ensure the protection and safety of these children.” 

The department’s investigation found that the district lacked adequate procedures and failed to train employees in the proper reporting of and response to student-on-student sexual harassment and assault; failed to appropriately accommodate the special needs of students with disabilities in preventing and responding to sexual assault; and failed to make educational and school communications, particularly those related to the complaint reporting and investigation process, accessible for parents and guardians with limited English proficiency. The agreement will strengthen the district’s policies and procedures for responding to student-on-student sexual assault and ensure that the district’s response accounts for the unique needs of students with disabilities and Limited English Proficient (LEP) parents.

The district cooperated with the department throughout the investigation. Among other actions, under the settlement agreement, the district will:

• Revise its policies for responding to complaints of sexual misconduct;

• Provide district staff with trainings on student-on-student sexual misconduct;

• Ensure it provides students with disabilities the accommodations they need to participate in the district’s educational programs, particularly accommodations that support the communication needs of students with disabilities; and

• Provide appropriate language assistance services to LEP parents and guardians.

The enforcement of Title IX, Title II and the Equal Educational Opportunities Act are top priorities for the Civil Rights Division. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt, and additional information about the Educational Opportunities Section’s work is available at www.justice.gov/crt/educational-opportunities-section. Members of the public may report possible civil rights violations at www.civilrights.justice.gov/.

The U.S. Attorney’s Office for the Northern District of Georgia worked in collaboration with the Civil Rights Division’s Educational Opportunities Section to investigate this case. Information about the U.S. Attorney’s Office for the Northern District of Georgia can be found at www.justice.gov/usao-ndga/about.

El Departamento de Justicia anunció hoy un acuerdo de conciliación con las Escuelas del Condado de Fulton en Georgia para resolver la investigación del Departamento de la respuesta del distrito a una serie de agresiones sexuales entre estudiantes en un autobús escolar que atiende a estudiantes con necesidades especiales. El Departamento llevó a cabo su investigación bajo del Título IX de las Enmiendas Educativas de 1972, el Título II de la ley de Estadounidenses con Discapacidades (ADA, por sus siglas en inglés) y la ley de Igualdad de Oportunidades Educativas de 1974.

«La responsabilidad de un distrito escolar es proteger a sus estudiantes del acoso y la agresión sexuales, especialmente aquellos cuyas discapacidades los hacen especialmente vulnerables», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «Las escuelas tienen la responsabilidad de abordar los obstáculos en la denuncia de agresiones sexuales y de tener en cuenta las necesidades especiales o vulnerabilidades de los estudiantes afectados y sus familias. El Departamento de Justicia continuará a trabajar para garantizar que nuestras escuelas sean entornos seguros del aprendizaje, libres del acoso sexual, y que sean equitativas para estudiantes con discapacidades».

«Los niños con discapacidades pueden ser especialmente vulnerables y merecen florecer en un entorno del aprendizaje libre de cualquier tipo de violencia, incluyendo durante el viaje en autobús hacia y desde la escuela,» declaró Ryan K. Buchanan, el Fiscal Federal para el Distrito Norte de Georgia. «Felicitamos al distrito por su disposición a cooperar con nuestra investigación y a resolver este asunto de manera amistosa, con el fin de asegurar la protección y seguridad de estos niños».

La investigación del Departamento descubrió que el distrito carecía de procedimientos adecuados y no capacitó a los empleados en la adecuada notificación y respuesta ante casos de agresión y acoso sexuales entre estudiantes; no acomodó adecuadamente las necesidades especiales de los estudiantes con discapacidades para prevenir y responder a las agresiones sexuales; y no hizo que las comunicaciones educativas y escolares, especialmente aquellas relacionadas con el proceso de notificación e investigación de quejas, fueran accesibles para los padres y tutores con un dominio limitado del inglés. El acuerdo fortalecerá las políticas y los procedimientos del distrito de respuesta ante agresiones sexuales entre estudiantes y garantizará que la respuesta del distrito considere las necesidades únicas de estudiantes con discapacidades y padres con un dominio limitado del inglés (LEP, por sus siglas en inglés).

El distrito cooperó con el Departamento durante toda la investigación. Entre otras acciones, en virtud del acuerdo conciliatorio, el distrito:

• Revisará sus políticas de respuesta a quejas de conducta sexual indebida;
• Proporcionará capacitaciones al personal del distrito sobre la conducta sexual indebida entre estudiantes;
• Se asegurará de que proporcione a los estudiantes con discapacidades los acomodos que necesitan para participar en los programas educativos del distrito, en particular las adaptaciones que respaldan las necesidades de comunicación de los estudiantes con discapacidades; y
• Proporcionará servicios de asistencia lingüística adecuados a los padres y tutores LEP. 

La aplicación del Título IX, el Título II y la ley de Igualdad de Oportunidades Educativas es una de las principales prioridades de la División de Derechos Civiles. Puede encontrar información adicional sobre la División de Derechos Civiles del Departamento de Justicia en su sitio web en www.justice.gov/crt, e información adicional sobre el trabajo de la Sección de Oportunidades Educativas está disponible en www.justice.gov/crt/educational-opportunities-section. Los miembros del público pueden informarnos de posibles infracciones de los derechos civiles en civilrights.justice.gov/report/.

La Fiscalía Federal para el Distrito Norte de Georgia trabajó en colaboración con la Sección de Oportunidades Educativas de la División de Derechos Civiles en la investigación de este caso. Información sobre la Fiscalía Federal para el Distrito Norte de Georgia se puede encontrar en www.justice.gov/usao-ndga/about.

ATLANTA – Tapestry Hospice of Northwest Georgia, LLC, and its owners and managers, David Lovell, MD, Stephanie Harbour, Ben Harbour, and Andrew Nall (collectively “Tapestry”), agreed to pay $1.4 million to resolve allegations that they violated the False Claims Act by entering into kickback arrangements with medical directors in exchange for referrals of hospice patients to Tapestry.  

“By entering into kickback arrangements, health care providers can cause doctors to make medical decisions that are motivated by financial gain, rather than the patient’s best interest,” said U.S. Attorney Ryan K. Buchanan. “Our office is committed to ensuring the accountability of health care providers who put their own financial needs ahead of their patients.”

“The False Claims Act settlement in this case will hopefully be a deterrent to those who selfishly evade our federal healthcare programs for their own benefit,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The message is clear, the FBI will not tolerate companies operating corporate-wide schemes to illegally line their pockets.” 

“Decisions regarding end-of-life care are incredibly difficult and personal, and families must be able to trust the intentions of their chosen providers,” said Georgia Attorney General Chris Carr. “Those who instead take advantage of the system for their own personal gain will be held accountable.”

This case began when a former employee of Tapestry filed a whistleblower complaint alleging that Tapestry paid kickbacks to medical directors to induce them to refer patients to Tapestry.  These alleged kickbacks included monthly stipends and a signing bonus paid to the medical directors.  The compensation allegedly increased when the medical director referred more patients and decreased when the medical director failed to make referrals.   

The Government alleges that these arrangements violated the Anti-Kickback Statute, 42 U.S.C. § 1320a-7b(b), and caused the submission of false claims in violation of the False Claims Act, 31 U.S.C. § 3729, et seq.

This civil settlement resolves a lawsuit filed in the U.S. District Court for the Northern District of Georgia by Kathy Erwin (the Relator) under the qui tam or whistleblower provisions of the False Claims Act, U.S. ex rel. Erwin v. Tapestry Hospice of Northwest Georgia, LLC, et al., No. 1:18-cv-4320-AT.  Under the False Claims Act, private citizens may bring suit for false claims on behalf of the United States and share in any recovery obtained by the government.  The Relator has received $252,000 from the settlement.

This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia the Federal Bureau of Investigation and the Georgia Medicaid Fraud Control Unit.

The civil settlement was reached by Assistant U.S. Attorney Adam D. Nugent and Georgia Assistant Attorney General Rick Tangum. 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.

Rodolfo Maldonado-Bustos, also known as Don Jose, and Euclides Camacho-Goicochea, also known as El Quilles, who occupy leadership roles in the La Nueva Familia Michoacana drug cartel, were charged by a federal grand jury with conspiracy to possess with the intent to distribute heroin and conspiracy to import heroin into the United States.

Earlier today, the U.S. Department of the Treasury’s Office of Foreign Asset Control (OFAC) announced financial sanctions against Camacho-Goicochea and Maldonado-Bustos, who are fugitives believed to be residing in Mexico.

“These actions demonstrate that in addition to holding cartel leaders accountable for their crimes, we are working together with our partners at the Treasury Department to hit the cartels’ criminal operations where it hurts the most – their profits,” said Attorney General Merrick B. Garland. “We will continue to mobilize a whole-of-government effort to disrupt the cartels profiting from the drug trafficking and human smuggling that devastate communities and endanger our national security.”

“These cartel members allegedly imported massive amounts of heroin from Mexico to the Atlanta area and elsewhere in the United States,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “The federal indictments in conjunction with the recent imposition of OFAC sanctions send a strong message that our office, in coordination with our law enforcement partners, will relentlessly investigate, prosecute, and defund individuals around the globe who import deadly drugs into our communities.”

“Denying drug cartels the profits earned from distributing poison in our communities is an essential tool in DEA’s efforts to combat these drug cartels,” said Special Agent in Charge Robert J. Murphy of the Drug Enforcement Administration (DEA) Atlanta Field Division. “DEA Atlanta will continue to attack the La Nueva Familia cartel on all fronts by arresting its members, as well as seizing their drugs and assets.”

“IRS Criminal Investigation special agents are highly skilled financial investigators who can unravel complex schemes cartels use to hide their money,” said Special Agent in Charge Demetrius Hardeman of IRS Criminal Investigation (IRS-CI)’s Atlanta Field Office. “IRS-CI and other members of the Organized Crime Drug Enforcement Task Forces will continue working together to bring these international criminals to justice.”

According to the indictments and other information presented in court, in September 2016, agents of the DEA and the IRS-CI initiated an investigation into Mexico-based La Nueva Familia Michoacana cartel members allegedly importing heroin, cocaine, and marijuana into the United States, including to the Northern District of Georgia. As part of the investigation, agents identified Maldonado-Bustos as a high-level cartel member who allegedly coordinated the manufacturing of large quantities of heroin in Mexico.

In particular, the investigation revealed that Maldonado-Bustos allegedly directed the harvesting of gum from opium fields, procured chemicals to process the gum into heroin, and supplied Camacho-Goicochea and other conspirators in Mexico with the heroin to import into cities in the United States, including Atlanta, and Houston. The investigation further revealed that Camacho-Goicochea allegedly coordinated the collection and return of drug proceeds from the United States back to Mexico. In early 2017, agents seized over $580,000 in drug proceeds from vehicles and homes in the Atlanta area, which were ultimately destined for the cartel in Mexico.

Rodolfo Maldonado-Bustos, also known as Don Jose, 59, and Euclides Camacho-Goicochea, also known as El Quilles, 51, both of Guerrero, Mexico, were charged with conspiracy to possess with the intent to distribute heroin and conspiracy to import heroin into the United States. Camacho-Goicochea was also charged with conspiracy to launder monetary instruments. The indictments were returned in August 2017 and were recently unsealed.

The DEA and IRS-CI investigated the case.

Assistant U.S. Attorney Rebeca Ojeda for the Northern District of Georgia is prosecuting the case against Camacho-Goicochea and Maldonado-Bustos. Assistant U.S. Attorney Laurel Milam for the Northern District of Georgia and Assistant U.S. Attorney Nicholas Hartigan for the Eastern District of North Carolina, provided valuable assistance to the investigation.

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 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 allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

ATLANTA –Rodolfo Maldonado-Bustos, a.k.a. “Don Jose,” and Euclides Camacho-Goicochea, a.k.a. “El Quilles,” who occupy leadership roles in the La Nueva Familia Michoacana drug cartel, were charged by a federal grand jury with conspiracy to possess with the intent to distribute heroin and conspiracy to import heroin into the United States.  

Earlier today, the U.S. Department of the Treasury’s Office of Foreign Asset Control (OFAC) announced financial sanctions against Camacho-Goicochea and Maldonado-Bustos, who are fugitives believed to be residing in Mexico.

“These actions demonstrate that in addition to holding cartel leaders accountable for their crimes, we are working together with our partners at the Treasury Department to hit the cartels’ criminal operations where it hurts the most – their profits,” said Attorney General Merrick B. Garland. “We will continue to mobilize a whole-of-government effort to disrupt the cartels profiting from the drug trafficking and human smuggling that devastate communities and endanger our national security.”

“These cartel members allegedly imported massive amounts of heroin from Mexico to the Atlanta area and elsewhere in the United States,” said U.S. Attorney Ryan K. Buchanan. “The federal indictments in conjunction with the recent imposition of OFAC sanctions send a strong message that our office, in coordination with our law enforcement partners, will relentlessly investigate, prosecute, and defund individuals around the globe who import deadly drugs into our communities.”

“Denying drug cartels the profits earned from distributing poison in our communities is an essential tool in DEA’s efforts to combat these drug cartels,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division. “DEA Atlanta will continue to attack the La Nueva Familia cartel on all fronts by arresting its members, as well as seizing their drugs and assets.”

“IRS Criminal Investigation special agents are highly skilled financial investigators who can unravel complex schemes cartels use to hide their money,” said Demetrius Hardeman, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “IRS-CI and other members of the Organized Crime Drug Enforcement Task Forces will continue working together to bring these international criminals to justice.” 

According to U.S. Attorney Buchanan, the indictments, and other information presented in court: In September 2016, agents of the Drug Enforcement Administration (DEA) and the Internal Revenue Service Criminal Investigation (IRS-CI) initiated an investigation into Mexico-based La Nueva Familia Michoacana cartel members allegedly importing heroin, cocaine, and marijuana into the United States, including to the Northern District of Georgia.  As part of the investigation, agents identified Maldonado-Bustos as a high-level cartel member who allegedly coordinated the manufacturing of large quantities of heroin in Mexico.  

In particular, the investigation revealed that Maldonado-Bustos allegedly directed the harvesting of gum from opium fields, procured chemicals to process the gum into heroin, and supplied Camacho-Goicochea and other conspirators in Mexico with the heroin to import into cities in the United States, including Atlanta, Georgia and Houston, Texas.  The investigation further revealed that Camacho-Goicochea allegedly coordinated the collection and return of drug proceeds from the United States back to Mexico.  In early 2017, agents seized over $580,000 in drug proceeds from vehicles and homes in the Atlanta area, which were ultimately destined for the cartel in Mexico. 

Rodolfo Maldonado-Bustos, a.k.a. “Don Jose,” 59, and Euclides Camacho-Goicochea, a.k.a. “El Quilles,” 51, both of Guerrero, Mexico, were charged with conspiracy to possess with the intent to distribute heroin and conspiracy to import heroin into the United States. Camacho-Goicochea was also charged with conspiracy to launder monetary instruments. The indictments were returned in August 2017 and were recently unsealed. 

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 Internal Revenue Service Criminal Investigation.

Assistant U.S. Attorney Rebeca Ojeda is prosecuting the case against Camacho-Goicochea and Maldonado-Bustos.  Assistant U.S. Attorney Laurel Milam, as well as Assistant U.S. Attorney Nicholas Hartigan, who is presently with the U.S. Attorney’s Office for the Eastern District of North Carolina, provided valuable contributions to the investigation.

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 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.

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) 581-6016.  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 and former City of Atlanta police officer was sentenced today to seven years and three months in prison for conspiring to defraud the Paycheck Protection Program (PPP) of approximately $15 million. 

According to court documents and evidence presented at trial, Shelitha Robertson, 62, of Atlanta, conspired with Chandra Norton to submit fraudulent PPP loan applications on behalf of businesses that Robertson and Norton each owned. The fraudulent loan applications falsely inflated the number of employees and average monthly payroll for each of the applicant businesses and included false supporting tax documentation, inducing larger PPP loans than Robertson or Norton could legitimately obtain. Robertson and Norton submitted fraudulent applications on behalf of four businesses Robertson owned, resulting in $7,020,779 in PPP funds deposited into bank accounts Robertson owned and controlled. Robertson then used the loan proceeds for her personal benefit, including purchasing luxury items, such as a 10-carat diamond ring, and transferring funds to family members and to Norton.

A federal jury convicted Robertson in December 2023 of on one count of conspiracy to commit wire fraud, three counts of wire fraud, and one count of money laundering. Norton pleaded guilty in November 2020 and is scheduled to be sentenced on Aug. 14.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia; Inspector General Hannibal “Mike” Ware of the Small Business Administration Office of Inspector General (SBA-OIG); Inspector General Jennifer L. Fain of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG); and Acting Inspector General Heather M. Hill of the Treasury Inspector General for Tax Administration (TIGTA) made the announcement.

The SBA-OIG, FDIC-OIG, and TIGTA investigated the case.

Trial Attorney Ariel Glasner of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Bernita Malloy for the Northern District of Georgia prosecuted the case.

ATLANTA - Cody Todd has been sentenced for assault on a Bureau of Prisons correctional officer at the U.S. Penitentiary in Atlanta, Georgia (USP-Atlanta).

“This defendant’s pattern of violent behavior continued while he was in custody, resulting in a vicious attack that left a correctional officer seriously injured,” said U.S. Attorney Ryan K. Buchanan. “Correctional officers must be permitted to do their jobs without the threat or fear of violence, and those who bring them harm will be prosecuted.”

“The FBI has zero tolerance for anyone who uses violence against law enforcement officers,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “We will always hold criminals accountable for their actions and will not hesitate to pursue those who repeatedly violate the law, even behind bars.”

“Todd’s sentencing sends a clear message that those who threaten or harm our correctional officers will be held accountable,” said Randilee Giamusso, Spokesperson for the Federal Bureau of Prisons. “The safety of our corrections employees and security of our facilities will always be the Federal Bureau of Prisons’ top priority in our mission to ensure public safety.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: On January 28, 2021, Cody Todd assaulted a correctional officer while he was in custody as a pretrial detainee at USP-Atlanta. Todd hit the officer in the face, knocked him to the floor, and then struck the officer several more times while the officer was incapacitated. This assault left the officer with significant injuries.

At the time of the assault, Todd was being detained on charges of racketeering activity in connection with his crimes committed as a member of the Ghost Face Gangsters. The racketeering activity included, among other offenses, murder, attempted murder, kidnapping and robbery.

Todd was separately convicted of conspiracy to commit racketeering and sentenced to 16 years in prison. Todd had also previously been convicted of battery on four separate occasions.

Cody Ryan Todd, 34, of Carrollton, Georgia, was sentenced by U. S. District Judge Victoria M. Calvert to six years and five months in prison, two years and 11 months of which will be served concurrently with the sentence on his racketeering conviction. Todd was found guilty by a jury on February 1, 2024.

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

Assistant U. S. Attorneys Richard Beaulieu and Alison Prout 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 – Shelitha Robertson, who formerly served as an Assistant City Attorney and police officer for the City of Atlanta, has been sentenced for fraudulently obtaining approximately $15 million in loans under the Paycheck Protection Program (PPP), a federal stimulus program authorized as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

“Motivated by greed, Robertson deceptively obtained funds that were designated to provide emergency financial relief to struggling small businesses during the COVID-19 pandemic,” said U.S. Attorney Ryan K. Buchanan. “We will continue to work with our law enforcement partners to investigate and prosecute criminals who stole pandemic relief funds.”

“Today the defendant in this case was held accountable for fraudulently obtaining millions of dollars through the Paycheck Protection Program and using those stolen funds to enrich herself, while small businesses were struggling during the pandemic,” said Kyle A. Myles, Special Agent in Charge of the Federal Deposit Insurance Corporation, Office of Inspector General, Atlanta Region. “The FDIC OIG remains committed to working with our law enforcement partners to pursue and bring to justice those who took advantage of such pandemic relief programs and threatened the integrity of our Nation’s financial institutions.”

“Scheming to divert vital funds from legitimate businesses that needed support during the pandemic undermines the integrity of SBA’s programs,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Braithwaite. “Our office remains steadfast in pursuing those who exploit federal programs for personal gain. I would like to thank the US. Attorney’s Office and our law enforcement partners for their unwavering commitment to the pursuing justice in this case.”

“The Treasury Inspector General for Tax Administration will aggressively pursue individuals who commit fraud against the American taxpayer by making false claims to obtain Paycheck Protection Program loans intended for legitimate businesses who needed it to survive the pandemic,” stated Special Agent in Charge Mark H Morini, Jr. “We want to express our gratitude to our federal partners and the U.S. Attorney’s Office for their assistance in holding these individuals to account.”

According to U.S. Attorney Buchanan, the court documents and evidence presented at trial: Shelitha Robertson and other co-conspirators submitted PPP loan applications on behalf of four businesses that she owned and controlled. The loan applications falsely inflated the number of employees and average monthly payroll for each of the four businesses, resulting in larger PPP loans than Robertson would be legitimately entitled to obtain. Robertson and her co-conspirator, Chandra Norton, also submitted false tax documents to support the inflated statements in each loan application. Robertson used the loan proceeds to purchase luxury items, including a 10-carat diamond ring. She also transferred funds to Chandra Norton and family members.

Shelitha Robertson, 62, of Atlanta, Georgia, was sentenced by U.S. District Judge Steven D. Grimberg to seven years, three months in prison to be followed by three years of supervised release. A jury convicted Robertson of one count of conspiracy to commit wire fraud, three counts of wire fraud, and one count of money laundering on December 19, 2023.

This case was investigated by the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), the U.S. Small Business Administration Office of Inspector General (SBA-OIG), and Treasury Inspector General for Tax Administration (TIGTA).

Assistant U.S. Attorneys Bernita B. Malloy and Trial Attorney Ariel Glasner of the Department of Justice Criminal Division’s Fraud Section prosecuted the case.

The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 192 defendants in more than 121 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.

In May 202, 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 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 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 – The U.S. Attorney’s Office for the Northern District of Georgia in partnership with the Fulton County District Attorney’s Office will launch the fourth annual Project Safe Neighborhoods (PSN) Credible Messenger Youth Summer Violence Intervention Program (“Summer Mentorship Program”). The kick-off for this year’s program will be held on May 31, 2024, at the Atlanta Technical College Preparatory Academy.

“This intensive mentoring program is an investment in our youth that will offer a solid foothold on a path to economic, social, and educational opportunities, while keeping them engaged over the summer,” said U.S. Attorney Ryan K. Buchanan. “Our continued partnerships with community leaders, law enforcement, and families are all vital to successfully reducing recidivism and improving community safety.” 

“Every summer during my time as District Attorney, our team has joined with U.S. Attorney Ryan Buchanan and his team to bring the Credible Messenger Program to at-risk youth in Fulton County,” said Fulton County District Attorney Fani Willis. “Our cooperative efforts have made a real difference in getting kids back on track, and we look forward to another summer of working with kids and making Fulton County a safer, more just place for everyone.”

“Community involvement remains the key to maintaining an environment of structure and accountability for our at-risk youth,” said Shawanda Reynolds-Cobb, Commissioner of the Department of Juvenile Justice. “Over the past several years, Project Safe Neighborhood has become an invaluable tool in promoting positive outcomes through reduced recidivism.”

The Summer Mentorship Program will engage youth between the ages of 15 and 19 who are on felony probation, in a 10-week intensive mentorship initiative. Through 10 hours of mentor engagement per week, youth will participate in support forums, career readiness training, community engagement, and an evidence-based, cognitive-behavioral, life-skills session utilizing the Forward Thinking and Project EGRESS curriculum. This year, participants will also be encouraged to simultaneously enroll in Atlanta Technical College’s Dual Achievement Program to earn a high school diploma while also obtaining a technical certificate in a specific career pathway. Youth who actively participate each day will also receive a weekly stipend for their work.

This initiative is being implemented by the Southeast Credible Messengers and the PSN Prevention and Reentry program of the U.S. Attorney’s Office. Southeast Credible Messengers is a community-based collaboration between organizations and individuals working together to achieve common goals: positive youth and young adult mentorship, recidivism reduction, public safety, and family & community engagement. The Southeast Credible Messenger team for this initiative is led by the Offender Alumni Association (OAA), Inc.

We would also like to thank leadership from the Georgia Department of Juvenile Justice Office of Reentry Services, Fulton County Juvenile Court, the City of Atlanta Cure Violence Initiative, the Credible Messenger Mentoring Movement (CM3), Emerging 100 of Atlanta, the Rocket Foundation, and the local business community for their continued partnership and support of the summer program.

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. - James Lewallen Meeks, a Georgia Department of Corrections inmate, and two conspirators, Jamey Michael Latty and Mark Anthony Powell, have been sentenced to federal prison for their roles in trafficking firearms, methamphetamine, and fentanyl in Northwest Georgia.

“While serving a sentence for a violent crime in a Georgia Correctional Facility, Meeks continued his criminal activity by brokering a number of illegal firearm and drug transactions with his co-defendants in Northwest Georgia,” said U.S. Attorney Ryan K. Buchanan. “Meeks will now serve two decades in federal prison after completing his state sentence, and his co-defendants are headed to federal prison as well.”

“This case exemplifies our commitment to prevent drug trafficking and criminal activity from poisoning our communities,” stated ATF Assistant Special Agent in Charge Alicia Jones. “It also sends a clear message that we will relentlessly pursue and prosecute the leaders and members of these violent drug enterprises.”

“Our communities remain under attack by criminal drug trafficking organizations with no regard for the harm and destruction they cause,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division. “This investigation and subsequent arrests of the individuals in this violent drug trafficking organization demonstrate DEA’s commitment to protecting our community by destroying these drug trafficking organizations.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: Starting around February 2022, James Lewallen Meeks, an inmate at Wheeler Correctional Facility in Alamo, Georgia, used a contraband cell phone to coordinate with Jamey Michael Latty and Mark Anthony Powell to sell firearms and drugs. Specifically, in March 2022, Meeks worked with Latty to sell methamphetamine in Rockmart, Georgia, and later sell methamphetamine and a Glock pistol to an individual in Cave Springs, Georgia. Meeks also coordinated repeatedly with Powell to sell methamphetamine and what turned out to be a mixture of fentanyl and xylazine to the same individual in Carrollton, Georgia. Along with the drugs, Powell sold ammunition and five firearms, including an UZI .22 caliber long rifle with a silencer, at the direction of Meeks. In April 2022, Latty separately sold ammunition and four firearms, including an AR-style rifle designed as a machine gun, to the same individual in Rome, Georgia.

On June 2, 2022, Latty was arrested in Hiram, Georgia in possession of approximately one kilogram of methamphetamine. That same day, Powell was arrested in Carrollton after leading law enforcement on a vehicle chase during which approximately one kilogram of methamphetamine was thrown out of Powell’s truck window. A pistol and a substance containing fentanyl was found in Powell’s vehicle at the time of his arrest. Agents also executed a federal search warrant at a residence in Carrollton, where some of the drug and firearms transactions had occurred, and seized six firearms from the residence, including rifles, shotguns, and a pistol. Latty and Powell were prohibited from possessing firearms and ammunition because each had previously been convicted of a felony offense.

 After Latty was indicted, he fled the state and assumed a false identity. Through the efforts of multiple state and federal agencies, Latty was eventually located and apprehended by U.S. Deputy Marshals in Collinsville, Alabama.

After pleading guilty to conspiracy to possess with the intent to distribute a controlled substance, possession with intent to distribute a controlled substance, and carrying a firearm during and in relation to a drug trafficking crime, U.S. District Judge William M. Ray, II sentenced the three men as follows:

• James Lewallen Meeks, 39, of Dallas, Georgia, was sentenced to 20 years in prison to be followed by eight years of supervised release, consecutive to the time he is already serving in state custody.

• Jamey Michael Latty, 45, of Centre, Alabama, was sentenced to 15 years and one month in prison to be followed by five years of supervised release.

• Mark Anthony Powell, 43, of Jackson, Georgia, was sentenced to 10 years, seven months in prison to be followed by eight years of supervised release.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Drug Enforcement Administration, with invaluable assistance from the Georgia State Patrol, Haralson Paulding County Drug Task Force, Paulding County Sheriff’s Office, Polk County Police Department, Michigan State University Police Department, the U.S. Marshals Service Gulf Coast Regional Fugitive Task Force Office, and the Special Response Team of DeKalb County, Alabama Sherriff’s Office.

Assistant U.S. Attorney Rebeca M. Ojeda 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.

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) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

Two alleged members of a transnational money laundering organization were arrested on criminal charges related to their alleged involvement in a scheme to launder millions of dollars in illegal drug proceeds for Mexican drug trafficking organizations, including the Sinaloa and Jalisco cartels (also known as CJNG).

Li Pei Tan, 46, of Buford, Georgia, was arrested today. Chaojie Chen, 41, a foreign national residing in Chicago, was arrested on April 18.

According to court documents, Tan and Chen allegedly worked for a money laundering organization that laundered millions of dollars in proceeds related to the importation of illegal drugs into the United States, primarily through Mexico, and the unlawful distribution of these drugs. Tan, Chen, and their co-conspirators allegedly traveled throughout the United States to collect proceeds derived from trafficking in fentanyl and other drugs (or to cause them to be collected). They allegedly communicated and coordinated with co-conspirators in China and other foreign countries to arrange for the laundering of these proceeds through financial transactions that were designed to conceal the illicit source of the drug proceeds.

According to the Drug Enforcement Administration’s (DEA) National Drug Threat Assessment, the Sinaloa and Jalisco cartels are at the heart of the fentanyl crisis in the United States.

Tan and Chen are charged in separate criminal complaints with conspiring to commit money laundering. If convicted, they each face a maximum penalty of 20 years in prison.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Jessica D. Aber for the Eastern District of Virginia; and DEA Administrator Anne Milgram made the announcement.

The DEA’s Special Operations Division, Bilateral Investigations Unit is investigating the case, with assistance from the DEA’s Office of Special Intelligence, Document and Media Exploitation Unit and the DEA’s offices in Chicago, Atlanta, and Charlotte, North Carolina.

Trial Attorney Mary K. Daly of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Edgardo J. Rodriguez for the Eastern District of Virginia are prosecuting the case, with assistance from the U.S. Attorneys’ Offices for the Northern District of Georgia and Northern District of Illinois.

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 www.justice.gov/OCDETF.

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

ATLANTA – Thirteen individuals, including an Atlanta-area gynecologist and two pharmacists, have now been sentenced for their roles in operating an Atlanta-area “pill mill” network that supplied addicts and drug dealers with large amounts of dangerous prescription drugs through illegal prescribing and dispensing.

“These individuals showed no regard for the safety and well-being of our community when illegally distributing prescription drugs,” said U.S. Attorney Ryan K. Buchanan. “We are resolute in our efforts to fight the opioid epidemic on all fronts, and licensed professionals who exploit and endanger the public with illicit drug operations for personal greed are no exception and will be held accountable.” 

“Pharmaceutical products that are distributed for non-medical reasons can be just as deadly as illicit drugs,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Division. “Dr. Mills distributed vast quantities of pharmaceutical products and had total disregard for human life. The moment he decided to illegally distribute drugs, he became nothing more than a drug trafficker.”

“As one of several members of the Organized Crime Drug Enforcement Task Forces, IRS Criminal Investigation is proud to work side-by-side with other law enforcement partners to combat organized crime,” said Demetrius Hardeman, CI Special Agent in Charge, Atlanta Field Office. “The sentence today signifies the end to an Atlanta area criminal operation.  Criminal enterprises are on notice that their illegal activities will be investigated and forwarded to the U.S. Attorney’s Office for prosecution.”

 According to U.S. Attorney Buchanan, the charges and other information presented in court: Anthony Mills was a medical doctor, licensed to practice medicine in the State of Georgia since 1997, whose specialty was listed with the medical board as "Gynecology.” Since at least October of 2018, Dr. Mills operated a pill mill out of his personal home where he issued hundreds of prescriptions for controlled substances (such as large quantities of oxycodone) to addicts and drug dealing sponsors in exchange for cash. Dr. Mills did not obtain prior medical records of his patients, conduct physical exams, or do anything to establish a valid patient-physician relationship. Instead, he often issued prescriptions in the names of individuals he never met or evaluated.  Some of the prescriptions that Dr. Mills issued were in the names of individuals whose identities had been stolen or who were incarcerated or deceased at the time Dr. Mills wrote the prescriptions.

A large percentage of the illegitimate prescriptions were filled by licensed pharmacist Raphael Ogunsusi through his pharmacies, Evansmill Pharmacy and Retox Pharmacy located in Stonecrest and Conyers, respectively. Ogunsusi knew that Dr. Mills’ prescriptions were illegal, but he nonetheless filled those prescriptions.

Ogunsusi accepted large cash payments in exchange for filling these illegal prescriptions, including as much as $900 to fill just one prescription for oxycodone and $500 to fill one prescription for Percocet. Ogunsusi knew these prices were well over the market value for legitimate controlled substance prescriptions. To disguise the significantly inflated prices that he was charging, Ogunsusi falsified the pricing information on his pharmacy computers to give the appearance that he had charged market prices for the prescriptions.  Ogunsusi also required sponsors to purchase a battery of additional non-controlled substances, which he referred to as the “Shebang,” as a condition for filling illegal controlled substance prescriptions. The purpose of these non-controlled substances was to maximize his profits and to conceal that most of his customers only wanted to fill controlled substances at his pharmacies. Ogunsusi also directed his pharmacy employees, including another licensed pharmacist, to fill the illegal prescriptions.

In addition to Dr. Mills and Ogunsusi, numerous pill sponsors who obtained illegal prescriptions from Dr. Mills were charged and sentenced, with the most recent sentencing occurring on May 22, 2024. These sponsors obtained prescriptions from Dr. Mills and/or Ogunsusi and sold them to drug users.

U.S. District Judge William M. Ray, II sentenced the defendants in this case as follows:

• Anthony Mills, M.D., 57, of Atlanta, Georgia, pleaded guilty to conspiracy to dispense and distribute prescription controlled substances and was sentenced to 11 years in prison and three years of supervised release.

• Raphael Ogunsusi, RPh, 71, of Conyers, Georgia, pleaded guilty to conspiracy to dispense and distribute prescription controlled substances and money laundering and was sentenced to nine years and seven months in prison and one year of supervised release.

• Moses Kirigwi, RPh, 32, of Atlanta, Georgia, pleaded guilty to using a telephone in connection with the unlawful dispensing and distribution of prescription controlled substances and was sentenced to 90 days in prison and one year of supervised release with the first three months served in home detention.

• Thomika Riley, 50, of McDonough, Georgia, pleaded guilty to conspiracy to dispense and distribute prescription controlled substances and was sentenced to six years and six months in prison and three years of supervised release.  

• Brittany Tinker, 30, of Stonecrest, Georgia, pleaded guilty to conspiracy to dispense and distribute prescription controlled substances and was sentenced to six years and six months in prison and three years of supervised release.

• Natalie Jackson, 40, of East Point, Georgia, pleaded guilty to conspiracy to dispense and distribute prescription controlled substances and was sentenced to four years and three months in prison and two years of supervised release.

• Rogerick Smith, 46, of Atlanta, Georgia, pleaded guilty to conspiracy to dispense and distribute prescription controlled substances and was sentenced to seven years and eight months in prison and three years of supervised release.

• Keandre Bates, 31, of Decatur, Georgia, pleaded guilty to conspiracy to dispense and distribute prescription controlled substances and was sentenced to nine years and two months in prison and three years of supervised release.

• Jeana Alston, 43, of Atlanta, Georgia, pleaded guilty to conspiracy to dispense and distribute prescription controlled substances and was sentenced to three years and one month in prison and two years of supervised release.

• Chafulumisa Lisbon, 33, of Atlanta, Georgia, pleaded guilty to conspiracy to dispense and distribute prescription controlled substances and was sentenced to nine years and two months in prison and three years of supervised release.

• Javon Hamilton, 34, of Bluffton, South Carolina, pleaded guilty to conspiracy to dispense and distribute prescription controlled substances and was sentenced to nine years and two months in prison and three years of supervised release.

• Marcena Jordan, 30, of Albany, Georgia, pleaded guilty to conspiracy to dispense and distribute prescription controlled substances and was sentenced to 10 years in prison and three years of supervised release.

• Travious Polain, 33, of Decatur, Georgia, pleaded guilty to conspiracy to dispense and distribute prescription controlled substances and was sentenced to five years and 10 months in prison and three years of supervised release.

This case was investigated by the Drug Enforcement Administration and Internal Revenue Service Criminal Investigation. The Rockdale County Sherriff’s Office, Rockdale County District Attorney’s Office, DeKalb County Police Department, DeKalb County District Attorney’s Office, Richland County (South Carolina) Sheriff’s Department, Saluda County (South Carolina) Sheriff’s Office, Sandy Springs Police Department, Georgia Department of Community Supervision, and Georgia Drugs and Narcotics Agency also provided valuable assistance in this case.

 Assistant U.S. Attorneys David A. O’Neal and Laurel Boatright Milam prosecuted the case.

This prosecution 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 by using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF program can be found at https://www.justice.gov/OCDETF.

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 - Malachi Mullings has been sentenced to 10 years in federal prison for laundering more than $4.5 million derived from romance fraud scams and business email compromise schemes, including a criminal conspiracy that defrauded a health care benefit program.

“Motivated by greed, Mullings and his co-conspirators brazenly stole millions of dollars from companies and elderly victims located throughout the United States,” said U.S. Attorney Ryan K. Buchanan. “This case demonstrates our office’s commitment to collaborate closely with our law enforcement partners to bring to justice those who perpetrate these frauds, including at the expense of elderly citizens especially vulnerable to these schemes.”

“Malachi Mullings used various schemes to fraudulently obtain money to feed his greed, and in some cases took advantage of the elderly to do it,” said Demetrius Hardeman, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “IRS Criminal Investigation special agents are skilled financial investigators who can unravel complex financial transactions and money laundering schemes criminals use to hide their ill-gotten money. We will also continue pursuing criminals who commit financial fraud on government programs, financial system, and the elderly.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: From at least 2019 through July 2021, Mullings opened 20 bank accounts in the name of a sham company, The Mullings Group LLC. Mullings used those accounts to launder millions of dollars of fraud proceeds generated by business email compromise (BEC) schemes targeting, among others, a health care benefit program and private companies, and romance fraud scams targeting numerous individual victims, several of whom were elderly. Together with his co-conspirators, Mullings engaged in financial transactions designed to conceal the fraud proceeds and used some of the funds to purchase luxury items, such as expensive cars and jewelry. In one instance, Mullings laundered $310,000 that was fraudulently diverted from a state Medicaid program and had been intended as reimbursement for a hospital. In another instance, Mullings obtained $260,000 from a romance scam perpetrated on an elderly victim, which Mullings used to purchase a Ferrari.

Malachi Mullings, 31, of Sandy Springs, Georgia, was sentenced by U.S. District Judge Michael L. Brown to 10 years in prison to be followed by three years of supervised release. He was also ordered to pay restitution to victims. He pleaded guilty to one count of conspiracy to commit money laundering and seven counts of various money laundering offenses on January 17, 2023. 

The U.S. Attorney’s Office for the Northern District of Georgia is part of the Department of Justice Transnational Elder Fraud Strike Force. The Strike Force focuses on investigating and prosecuting defendants associated with foreign-based fraud schemes that disproportionately affect American seniors.  These include romance scams, phone scams, mass-mailing fraud schemes, and tech-support fraud schemes.  For further information on these scams, see https://www.justice.gov/elderjustice/senior-scam-alert.

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

Assistant U.S. Attorney Kelly K. Connors prosecuted the case, with Trial Attorneys Gary Winters and Chris Wenger of the National Rapid Response Strike Force of the Criminal Division’s Fraud Section.

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.

 

A Georgia man was sentenced today to 10 years in prison for laundering more than $4.5 million derived from business email compromise (BEC) schemes, including a scheme that defrauded a health care benefit program, and romance fraud schemes.

According to court documents and evidence presented at sentencing, Malachi Mullings, 31, of Sandy Springs, opened 20 bank accounts in the name of a sham company, The Mullings Group LLC. From at least 2019 through July 2021, Mullings used those accounts to launder millions of dollars of fraud proceeds generated by BEC schemes targeting, among others, a health care benefit program and private companies, and romance fraud schemes targeting numerous individual victims, several of whom were elderly. Together with his co-conspirators, Mullings engaged in financial transactions designed to conceal the fraud proceeds and used some of the proceeds to purchase luxury items, such as expensive cars and jewelry. In one instance, Mullings laundered $310,000 that was fraudulently diverted from a state Medicaid program and had been intended as reimbursement for a hospital. In another instance, Mullings obtained $260,000 from a romance scam, which Mullings used to purchase a Ferrari. 

Mullings pleaded guilty in January 2023 to one count of conspiracy to commit money laundering and seven counts of various money laundering offenses. 

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia; Special Agent in Charge Linda T. Hanley of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Kansas City Region; Special Agent in Charge Demetrius D. Hardeman of IRS Criminal Investigation (IRS-CI) Atlanta Field Office; Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division; and Special Agent in Charge Eugene S. Kowel of the FBI Omaha Field Office made the announcement.

HHS-OIG, IRS-CI, and the FBI investigated the case.

Trial Attorneys Gary Winters and Chris Wenger of the National Rapid Response Strike Force of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kelly Connors for the Northern District of Georgia prosecuted the case.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

GAINESVILLE, Ga.- Bobby Joe Holloman has been arraigned on federal charges for distributing fentanyl and possessing a firearm as a convicted felon.

“Holloman’s alleged fentanyl distribution led to two overdoses, resulting in the death of one victim,” said U.S. Attorney Ryan K. Buchanan. “Fentanyl is an extremely potent drug that too often leads to overdosing or death when used in even miniscule amounts. We are committed to prosecuting those who callously peddle this dangerous drug in our communities.”

“Holloman plagued our communities with fentanyl, fueling the deadliest drug epidemic our country has ever seen, and for that he will be held accountable,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “This indictment demonstrates the FBI’s commitment to work diligently along with our partners to investigate and remove these dangerous drug dealers from our streets.”

“The dangers of fentanyl are more evident than ever as we see innocent lives being taken by this drug every day,” said Chris Hosey, Director, Georgia Bureau of Investigation.  “This case is a warning to those who seek to ruthlessly poison our Georgia communities with deadly drugs such as fentanyl, that we will stand with our law enforcement partners to combat this issue and save lives. We will continue to investigate drug related cases and work to hold drug distributors and traffickers accountable for their actions.”

“I am grateful for the hard work of our local, state, and federal partners who have worked tirelessly to help remove dangerous drugs like fentanyl from our community,” said Jay Parrish, Chief of Police, Gainesville Police Department. “This case exemplifies how these partnerships work to make our city safer.”

According to U.S. Attorney Buchanan, the charges, and other information presented in court: Bobby Joe Holloman allegedly sold fentanyl, which resulted in two victims suffering an overdose. One victim survived after paramedics used Narcan to revive him; however, the other victim died. About a month later, Holloman was on the scene during the investigation of another overdose death when a gun was found that belonged to him. At that time, Holloman had been previously convicted in February 2021, of the felony offense of possession with intent to distribute cocaine and a felon in possession of a firearm.

Bobby Joe Holloman, 50, of Gainesville, Georgia, was arraigned before U.S. Magistrate Judge J. Clay Fuller on May 13, 2024. He was indicted by a federal grand jury on May 7, 2024.

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

This case is being investigated by the Federal Bureau of Investigation, the Georgia Bureau of Investigation, and the Gainesville Police Department.

Assistant U.S. Attorney Jennifer Keen 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 – In honor of National Police Week, U.S. Attorney Ryan K. Buchanan recognizes the service and sacrifice of federal, state, local, and Tribal law enforcement. This year, the week is observed Sunday, May 12, 2024, through Saturday, May 18, 2024.

“Every day, law enforcement officers selflessly risk their lives to help protect our families, friends, and neighbors, and all while facing unforeseen dangers,” said U.S. Attorney Ryan K. Buchanan. “We are grateful for the dedication and bravery of these men and women and their commitment to public safety.”

In 1962, 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.  The National Law Enforcement Officer Memorial Fund’s preliminary report indicates that 136 law enforcement officers died in the line of duty in 2023.

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. Here in the Northern District of Georgia we also solemnly commemorate the five officers who tragically died in the line of duty within the past year:

• Sergeant Marc Andrew McIntyre, Spalding County Sheriff's Office, End of Watch: December 29, 2023
• Officer Kenya D. Galloway, Atlanta Police Department, End of Watch: January 4, 2024
• Deputy Sheriff Eric A. Minix, Coweta County Sheriff's Office, End of Watch: January 4, 2024
• Trooper Jimmy Cenescar, Georgia State Patrol, End of Watch: January 28, 2024
• Trooper First Class Chase Winston Redner, Georgia State Patrol, End of Watch: February 20, 2024

Each year, the National Law Enforcement Officer Memorial Fund in Washington, D.C. also 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 the 36th Annual Candlelight Vigil being held tonight, Monday, May 13, 2024, at 8:00 p.m. Eastern Time. The Candlelight Vigil will be livestreamed on YouTube,  Facebook, and Twitter.

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.