Southern District of Georgia

AUGUSTA, GA:  Allison Michelle Waddell, 33, of Beech Island, South Carolina pled guilty last week to information charging her with making false statements, in violation of 18 U.S.C. § 1001.  The false statements concerned the number of hours she worked for a National Security Agency (“NSA”) subcontractor.  In total, Waddell claimed she worked almost 750 more hours than she actually did, which caused the government to pay out $60,000 more than was actually owed.

According to the evidence presented during the guilty plea hearing, Waddell worked as an analytic reporter for an NSA subcontractor from August 2009 through October 2010 and again from October 2011 to September 2012.  During those time periods, Waddell submitted numerous timesheets falsely stating the number of hours she had worked.

United States Attorney Edward J. Tarver said, “False claims submitted to our United States Government for payments not owed is theft and should be punished to the full extent of the law.  Americans cannot afford, and can no longer turn a blind eye to, this type of corruption.  The number one priority of the United States Attorney’s Office is the protection of the American people.” 

Waddell faces a maximum penalty of 5 years in prison and a $250,000.00 fine.  In addition, the Court can order Waddell to pay full restitution.  As part of her plea agreement with the government, Waddell has already paid $10,000.00 toward restitution.

NSA Office of Inspector General Investigators Kristen M. McGrath and Robert L. Gaskill and Paul A. Tarnuzzer, an agent with the Defense Criminal Investigative Service, conducted the investigation which led to the information and plea.  Assistant United States Attorney C. Troy Clark is the prosecutor in this case.  For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.

Federal authorities dismantled an organization that operated 13 phony grocery stores across Georgia which trafficked in Food Stamp and WIC benefits

SAVANNAH, GA: Rashella Reed, 41, a former Atlanta Public School teacher from Riverdale, Georgia, was sentenced on Wednesday by United States District Judge William T. Moore, Jr. to serve 14 years in prison for her role in a massive $8 million fraud upon the Food Stamp and WIC programs.  Earlier this year, Reed and 2 others were convicted after a 4-day jury trial of conspiring to defraud the Supplemental Nutrition Assistance Program (SNAP), commonly known as the Food Stamp Program, and the Women, Infant and Children Program (WIC).  In addition to her prison sentenced, Reed was ordered to serve 3 years of supervised release upon her release from prison and to pay $8,254,239.46 in restitution.    

According to evidence presented during the trial and at Reed’s sentencing, Reed and others conspired to traffic over $8 million in government benefits from the Food Stamp and WIC programs, and to launder the proceeds of their ill-gotten gains.  The scheme involved 13 storefronts throughout Georgia, including stores in Savannah, Augusta, Atlanta, Decatur, Macon and Columbus.  Reed owned and operated the Decatur, Georgia store known as, “The Baby Spot.”  The 13 stores amounted to “pretend” grocery stores, which were used as a front to buy over $8 million in food stamp benefits and WIC vouchers for cash.  Food Stamp and WIC recipients were paid anywhere from $.10 to $.60 on the dollar for their benefits; Reed and other conspirators pocketed the rest.  The organization was attempting to expand into Alabama and Tennessee when it was dismantled by federal agents investigating the case.  A total of 16 defendants were charged with the scheme; 13 pled guilty and 3 were convicted at trial.  To date, this case was the largest prosecution of its kind in the State of Georgia.  

United States Attorney Edward J. Tarver said, “SNAP and WIC are part of the hunger safety net put in place to provide assistance to eligible, low income individuals and families who qualify.  These defendants scammed federal food programs, swindled American taxpayers and literally took food out of the mouths of children.  The work of dedicated and hardworking federal agents prevented this scam from spreading further into neighboring states and costing taxpayers many more millions of dollars.  This case is an example of the work that federal agents and prosecutors are doing to end fraud in federal programs.”

Karen Citizen-Wilcox, Special Agent-in-Charge of the United States Department of Agriculture, Office of Inspector General said, “This OIG investigation shows how greed attracts individuals at all levels.  Ms. Reed was college educated and employed as a teacher.  However, she found it necessary to take part in a multi-million dollar fraud scheme that offended the sensibilities of the American taxpayer and deprived needy individuals of nutrition.  The jury conviction and 14 year sentence handed down by U.S. District Court Judge Moore serves as an extreme eye opener for individuals who think that such crimes only get a slap on the hand.  OIG remains ever committed to such investigations and to working with the DOJ to prosecute individuals consumed by such greed.”

The prosecution of this case arose out of an investigation led by Special Agent Salina Walker of the USDA-OIG.  Assistant United States Attorneys James D. Durham and E. Gregory Gilluly prosecuted the case for the United States.  For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.

Brunswick, GA - Pierce County Sheriff's Deputy Randy Strickland, 55, was arrested on federal charges yesterday for his role in the trafficking of methamphetamine.  Strickland had his initial appearance today in federal court in Brunswick, Georgia before United States Magistrate Judge James E. Graham, where he was ordered detained without a bond.  

According to papers filed with the District Court, Deputy Strickland allegedly agreed to act as “security” for individuals he believed were dealing meth, by acting as the lookout.  Strickland’s drug activities allegedly occurred while he was in uniform and while he was driving his police vehicle.  When Pierce County Sheriff Ramsey Bennett received information about Strickland’s apparent criminal activities, he immediately requested federal law enforcement assistance.  

United States Attorney Edward Tarver stated, "Police corruption leaves a permanent stain on the good work of our law enforcement community.  Make no mistake that defendants who violate the trust of this community, law enforcement or otherwise, will be prosecuted to the fullest extent of the law.”

“This defendant took an oath to uphold the law and protect the citizens of Pierce County,” said ATF Special Agent in Charge Christopher Shaefer.  “Instead, he is alleged to have betrayed the community he swore to protect.  Corrupt officers unfortunately tarnish the badge worn proudly by the committed men and women of law enforcement.  The success of this investigation would not have been possible without the dynamic level of law enforcement cooperation.”

“The result of this arrest demonstrates the strong relationships HSI has established with our federal and local partners,” says HSI Special Agent in Charge Brock D. Nicholson, Atlanta, Georgia.  “It is a disappointing day when we have to arrest a law enforcement officer in a position of public trust, but maintaining the integrity of our law enforcement system is of upmost importance.”

Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated, “Public corruption matters in general continue to be the FBI’s highest investigative priorities due to the potential it has to erode public trust.  When those corrupt and illegal activities involve a law enforcement official operating within the color of law, the FBI will address them with a greater sense of urgency.  While these cases constitute a serious breach of trust by the official or officer involved, the public should be reminded that the vast majority of those working within the criminal justice system are dedicated to their sworn oaths of office.  Furthermore, the public should be reassured that the FBI remains committed to working vigorously with our federal, state and local partners to investigate such matters and hold these individuals committing such crimes accountable for their actions.” 
Pierce County Sheriff Ramsey Bennett said, “This is a situation where there are no winners.  This gives the Office of the Sheriff a black eye and erodes the confidence of the public in law enforcement.  As Sheriff, I will not tolerate this type of conduct.  I want to reassure the public that we will police ourselves as well as the general public.”
The present charge against Strickland carries a maximum prison sentence of 40 years, and a fine up to $5,000,000.  Mr. Tarver emphasized that a criminal complaint is only an accusation and is not evidence of guilt.  The defendant is entitled to a fair trial, during which it will be the government's burden to prove guilty beyond a reasonable doubt.

This case was investigated by ATF, HSI, FBI and local law enforcement.  Assistant United States Attorneys Greg Gilluly and Tania Groover are prosecuting the case on behalf of the United States.  For additional information, please contact First Assistant United states Attorney James D. Durham at (912) 201-2547.

Savannah, GA - Gene Hoyt Vandiver, 34, of Richmond Hill, Georgia, was indicted earlier this month by a federal grand jury sitting in Savannah on charges related to the burning of a cross in his neighbor's yard.  Vandiver was charged with one count of interfering with housing rights and with one count of arson.  Vandiver had his initial appearance in federal court before United States Magistrate Judge G.R. Smith on October 10, 2013. 

According to information presented in court, Vandiver, who is white, allegedly burned a cross in the yard of his neighbor, whom Vandiver believed to be African-American.  Vandiver also left a sign in his neighbor’s yard with a racial slur and a hand-drawn picture of a person being lynched.

United States Attorney Edward Tarver stated, "Cross-burning remains a vicious symbol of hate and no one should have to suffer the fear and intimidation caused by such a cruel act.  My office will work diligently with our law enforcement partners to prosecute criminal civil rights violations of any form."

The interfering with housing rights charge against Vandiver carries a 10-year maximum prison sentence; the arson charge carries a 10-year consecutive prison sentence.  Mr. Tarver emphasized that an indictment is only an accusation and is not evidence of guilt.  The defendant is entitled to a fair trial, during which it will be the government's burden to prove guilt beyond a reasonable doubt.

This case was investigated by the FBI and the Richmond Hill Police Department.  Assistant United States Attorneys Tania Groover and Greg Gilluly are prosecuting the case on behalf of the United States.  For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.

AUGUSTA, GA - A federal indictment, unsealed yesterday in federal court, has charged 14 defendants conspiring to traffic large amounts of methamphetamine from Mexico to Richmond, Columbia, and McDuffie Counties in Georgia, and to areas of South Carolina.

The charges result from a joint investigation by the FBI’s Safe Streets Task Force, the DEA, the Richmond County Sheriff’s Office, State of Georgia Pardons and Parole Office, and the Georgia Bureau of Investigation.

United States Attorney Edward Tarver said, ASuccessful investigations such as these are the result of great cooperation between federal and local law enforcement agencies.  We are committed to bringing justice to those who profit from the scourge of illegal narcotics trafficking, and to seizing and forfeiting their ill-gotten gains.@

Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated, “ This Mexico-based criminal enterprise is alleged to have established its methamphetamine distribution base of operations within the Central Savannah River area and, after an intensive investigation culminated in an extensive law enforcement action this week, those operations have come to a sudden end.  The FBI’s Safe Streets Task Force (SSTF) operating out of the Augusta area brought in additional resources from the Richmond County Sheriff’s Office, the DEA, the Georgia Bureau of Investigation (GBI), as well as officers from the Georgia State Pardons and Parole Office in order to better neutralize this organized and structured international drug distribution enterprise.”

If convicted of the drug trafficking conspiracy charge, each defendant faces a maximum of life in prison and a potential fine of $10,000,000. Tarver noted that the United States is also seeking to forfeit various items of personal property involved in the offenses, including $2 million as the alleged proceeds of the defendants= drug trafficking.

Of the 14 defendants charged, 11 have been arrested :

-           Florentino Binzha- Elisa, 46, of Warrenville, SC; -           Gilberto Fabona Gaona, 38, of Augusta, GA; -           Jesus Avala Lombera, 32, of Augusta, GA; -           Oscar Piedra, aka Oscar Hernandez, 39, of Augusta, GA; -           Fidel Sanchez Garcia, 32, of Augusta, GA; -           Henri Vertez Travis, 38, of Hephzibah, GA; -           Tyler James Barcenas, 21, of Augusta, GA; -           Naun Padilla, 34, of Augusta, GA; -           Huber Romero, 37, of Augusta, GA; -           Victor Eduardo Ovalle, Jr., 20, of Harlem, GA; and, -           Jose Ines Davila, 34, of North Augusta, SC.

The 3 remaining defendants still at large are:

-           Eduardo Juarez Gallegos, 44, of Ridgeland, SC; -           Jorge Perez Rodriguez, 31, of Harlem, GA; and, -           Maximo Moreno, aka Maximo Castillo, 70, Harlem, GA.

            Anyone with information as to the whereabouts of these 3 defendants are asked to call the FBI at: (706) 722-3702.

Mr. Tarver emphasized that the indictment is only an accusation and is not evidence of guilt. The defendants are entitled to a fair trial, during which it will be the Government=s burden  to prove guilt beyond a reasonable doubt.

Assistant United States Attorney Patricia Green Rhodes is prosecuting the case for the Government.  For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.

All 23 defendants in custody have now pled guilty arising out of
Human/Sex Trafficking Investigation Dark Night  

SAVANNAH, GA - Joaquin Mendez-Hernandez, a/k/a, El Flaco, 35, formerly of  Mexico, pled guilty last week before Senior United States District Court Judge B. Avant Edenfield for his role in a sex trafficking organization which operated in Savannah, Georgia, parts of Florida, South Carolina and North Carolina, and in Mexico.  El Flaco faces a possible life sentence for his role in the sex trafficking organization.

Each of the 23 defendants that were charged earlier this year in an operation dubbed “Dark Night” have pled guilty.  2 additional defendants, Eugenio Prieto-Hernandez and Daniel Ribon-Gonzalez, remain fugitives.  Operation Dark Night represents the largest sex-trafficking investigation ever prosecuted in the Southern District of Georgia.
           
According to evidence presented during numerous guilty pleas, local and federal law enforcement agencies identified and dismantled an international sex trafficking enterprise that spread from Mexico to Savannah, Georgia.  Members of the organization enticed women from Mexico, Nicaragua and elsewhere to travel to the United States with false promises of the American dream.  Once inside the United States, these women were threatened and forced to commit acts of prostitution at numerous locations in Savannah and throughout the southeast.  Women were forced to engage in sexual activity with as many as 30-50 people a day.  To make sure the women complied, members of the organization threatened the women; used violence against the women; and held children hostage in Mexico.  Members of the organization would also trade their victims to other members who operated in other states.

United States Attorney Edward Tarver states, “It is with great pride that I announce the convictions of all of the defendants who were indicted and arrested in connection with ‘Operation Dark Night.’  This case serves as an example of how local and federal law enforcement can work together to rescue women, save lives, and prosecute criminals.  In this case, justice was swift; and we expect the punishment to be severe.”

“The conviction of the monsters arrested in this heinous sex trafficking scheme marks the end of a life of misery inflicted on these innocent victims of human trafficking.  The perpetrators, ranging from street-level customers to international sex traffickers, will be held accountable for their repeated victimization and exploitation of these vulnerable women,” said Brock D. Nicholson, special agent in charge of Homeland Security Investigations (HSI) Atlanta.  “We are deeply gratified by the significant support we received from our law enforcement partners, non-governmental service organizations and the U.S. Attorney’s Office for the Southern District Georgia for bringing Operation Dark Night to a successful conclusion.”

The 23 defendants who pled guilty in Operation Dark Night are: 

Joaquin Mendez-Hernandez, a/k/a, “El Flaco,” 35, Savannah, Georgia

Juan Carlos Pena, 55, Bonaire, Georgia

Luisa Capilla-Lancho, a/k/a “Marisol” 32, Savannah, Georgia

Jorge Lira-Xochicale, a/k/a “Roger,” a/k/a “Juan De Dios,” a/k/a “Juan Diablo,” 35, Atlanta, Georgia

Mayer Sanchez-Calderon, a/k/a “Maye,” 22, Charlotte, North Carolina

Claudio Sanchez-Calderon, a/k/a “Borrego,” 43, Charlotte, North Carolina

Omar Peralta-Rodriguez, a/k/a “Erick Peralta,” a/k/a “El Negro,” 42, Baxley, Georgia

Neurby Celenia Diaz, a/k/a “Dona Rosa,” 48, Baxley, Georgia

Antonio Ubaldo Mendez-Lopez, 46, Naples, Florida

Cesar Aguilar-Rebollar, a/k/a “Cesar Nicholas Jaime,” 44, Tampa, Florida

Sylvia Barrera, 30, Warner Robbins, Georgia

David Reyes, 29, Savannah, Georgia

Antonio Ramirez-Catalan, a/k/a “Joel,” 30, Monroe, North Carolina

Jose Ricardo Vazquez-Garcia, 39, W. Columbia, South Carolina

Marisol Ferreriras, 38, Marietta, Georgia

Paresh Patel, 55, Savannah, Georgia

Sergio Valazquez Martinez, 35, Savannah, Georgia

Fernando Pelayo Silverio, 27, Savannah, Georgia

Arturo Salquil- Gomez, 41, Savannah, Georgia

Jose Hernandez-Trujillo, 29, Savannah, Georgia

Silvstre Aguilar Sayago, a/k/a “Chucky,” 27, Savannah, Georgia

Rodolfo Hernandez Guiterrez, 44, Savannah, Georgia

Alex Martinez Monzon, 36, Savannah, Georgia

Many of these defendants are awaiting sentencing.

12 victims were rescued as a part of Operation Dark Night.  HSI provides relief to victims of human trafficking by allowing for their continued presence in the United States during criminal proceedings.  Victims may also qualify for a T visa, which is issued to victims of human trafficking who have complied with reasonable requests for assistance in investigations and prosecutions.  Anyone who suspects instances of human trafficking is encouraged to call the HSI tip line at 1-866-DHS-2-ICE (866-347-2423) or the Human Trafficking Hotline at 1-888-373-7888.  Anonymous calls are welcome.

Operation Dark Night was led by HSI, with assistance from the FBI; the ATF; U.S. Customs and Border Protection (CBP); CBP Air and Marine Operations; IRS-Criminal Investigations; the Savannah-Chatham Metropolitan Police Department; the Chatham County Sheriffs Office; the Garden City Police Department; and, the Chatham County Counter Narcotics Team.  Assistant United States Attorney Tania D. Groover and E. Greg Gilluly, Jr. are prosecuting the case on behalf of the United States.  For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.

STATESBORO, GA - Two federal indictments, unsealed today in federal court, have charged 11 defendants with conspiracy to commit theft of public money and access device fraud in connection with fraudulent tax returns.  Both of these indictments allege that the defendants illicitly obtained and possessed debit cards and tax refund checks stemming from the preparation and submission of fraudulent tax returns.  The initial court appearances were held today at 10:00 a.m. in the Federal Courthouse in Statesboro, Georgia.

United States Attorney Edward J. Tarver said, “These indictments demonstrate the continued commitment of the United States Attorney’s Office to protecting the hard-earned money of honest taxpayers.  Our law enforcement partners will continue to investigate and prosecute those who seek to profit from the preparation and filing of fraudulent tax returns.”

IRS Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot said, "Today's announcement exemplifies the intense focus on the rigorous pursuit of identity theft by IRS and our law enforcement partners.  IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority and we will continue to vigorously pursue those who undermine the integrity of the U.S. tax system."

Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated, "The FBI will continue to work with our local, state, and other federal law enforcement partners to aggressively pursue criminals who defraud the U.S. government by stealing the identities of unwitting and innocent victims.”

Joshua Waites, Chief, Office of Special Investigations, Georgia Department of Revenue, stated, “Today’s arrests show how serious the State of Georgia is at finding and arresting individuals committing identity theft fraud.  The Georgia Department of Revenue will continue to work with our federal and local law enforcement officials to combat this growing trend.”

Statesboro Director of Public Safety Wendell Turner said, “The Statesboro Police Department has been working with our local and federal counterparts to apprehend the persons responsible for defrauding the government and individuals through a variety of criminal schemes.  We are very proud of these partnerships and the results they yield for our citizens.  This investigation is just another example of everyone working together, sharing resources, information and expertise for the common good of our community.”

Mr. Tarver emphasized that an indictment is only an accusation and is not evidence of guilt.  The defendants are entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt. 

FBI Special Agent Marcus Kirkland, IRS Special Agent Gwen Weston and SPD Sgt. James Winskey, assisted by their agencies’ colleagues, conducted the investigation which led to the indictments.  The United States Marshals Service, Georgia State Patrol, Georgia State Probation Office, Sylvania Police Department and the sheriff’s offices for Bulloch and Screven counties assisted in the arrests of numerous defendants.

Assistant United States Attorneys David Stewart and Lamont A. Belk are prosecuting the cases on behalf of the United States.  For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.

List of 11 Federal Defendants

RICHARD PARKER, 60, of Sylvania, Georgia

EULA MAE RODRIGUEZ, 47, of Sylvania, Georgia

TACARRO MORGAN, 25, of Sylvania, Georgia

SIRBRINA BANGS, 26, of Statesboro, Georgia

DEQUILLIA HILL, 43, of Sylvania, Georgia

KANDICE WHITE, 25, of Sylvania, Georgia

ALECEIA LOVETT, 29, of Statesboro, Georgia

CIERRA JOHNSON, 22, of Statesboro, Georgia

DANIELLE CLARK, 26, of Statesboro, Georgia

DEVANG SHAH, 32, of Sylvania, Georgia

TAMEIKA CLARK, 24, of Statesboro, Georgia

BRUNSWICK, GA Cortez Arbery, 25, of Brunswick, pled guilty earlier this month before Chief United States District Court Judge Lisa Godbey Wood to being a felon in possession of a firearm.  If Arbery is determined to be an “armed career criminal,” he faces a minimum of 15 years in federal prison.  During the guilty plea hearing, the evidence showed that Arbery possessed a stolen .38 caliber pistol after having been previously convicted of three felony drug offenses.

Arbery’s guilty plea was the latest in a series of federal prosecutions focusing on gun, drug and violent crime in the Brunswick, Georgia area.  Five others previously pled guilty in federal court for their role in weapons and drug offenses: Gromyko Green, 33, pled guilty to possessing a sawed-off shotgun and cocaine; John Wesley Boone, 27, pled guilty to being a felon in possession of a firearm; Calvin Grovener, 24, pled guilty to being a felon in possession of a firearm; Patrick Tenney, 23, pled guilty to receiving a firearms while under indictment; and, Reginald Beckham, 19, pled guilty to trafficking crack cocaine.  The sentencings of each of the six defendants will take place after the United States Probation Office conducts pre-sentence investigations.

United States Attorney Edward J. Tarver said, “The number one priority of the United States Attorney’s Office is the protection of the citizens of the Southern District.  Those who commit violent offenses in the Brunswick area by trafficking in guns, drugs and the fear of others can expect to have their operations relocated to a federal prison cell.”

All six cases were investigated by the Glynn/Brunswick Violent Crime Task Force, which consists of agents and officers from the ATF, the FBI, the Glynn County Police Department, the Brunswick Police Department, the Glynn County Sheriff’s Office, and the Georgia State Probation Office. The Task Force was formed in December 2012 to combat growing gun violence in Glynn County.  Thus far, over 53 guns have been seized.  Investigations are ongoing and further federal prosecutions are expected.

Assistant U.S. Attorneys Charlie Bourne and Shane Mayes prosecuted the cases on behalf of the United States.  For additional information, please contact First Assistant United States Attorney James Durham at (912) 201-2547.

AUGUSTA, GA – Fawad Shah Syed, 47, of Martinez, Georgia, was convicted on Wednesday by a federal jury after a 2-day trial before U.S. District Court Judge J. Randal Hall for the Attempted Online Enticement of a Minor to Engage in Sexual Activity, Destruction of Records in a Federal Investigation, and Attempted Destruction of Records in a Federal Investigation.

United States Attorney Edward Tarver said, “This defendant was convicted of engaging in inappropriate communications with a girl whom he believed to be 14 years old in order to engage in illicit sexual conduct, and destroying evidence related to that charge.  The online solicitation of minors for sexual purposes is deplorable, and the U.S. Attorney’s Office aggressively prosecutes individuals, like this defendant, who are involved in such predatory acts towards our children.  Syed’s conviction will help protect our children from such future predatory acts.”

Evidence presented during the trial revealed that Syed, posing as a man in his twenties named “Daniel,” engaged in online communications with a person he believed to be a 14-year-old girl who he initiated contact with online.  After four days of text messaging and several attempts to meet the girl, Syed showed up at what he believed to be the girl’s residence with condoms and alcohol.  He was immediately arrested by law enforcement officers.  Shortly thereafter, he contacted his wife from jail, and before telling her what charges he faced, instructed her to delete his email account and remotely wipe his phone.  He also asked her to wipe his computer.  Mrs. Syed cooperated with law enforcement thereafter, providing an investigator with Defendant’s computer and testifying at trial.  Syed’s computer was searched, and revealed online texts that the Defendant had last summer with a 13-year-old girl. 

Syed faces up to life in prison, a fine of up to $250,000, and between 5 years and life of supervised release for the enticement charge.  He also faces up to 10 years in prison for each destruction of evidence charge.  Syed remains in custody pending his sentencing hearing.  A sentencing date will be scheduled following completion of a presentence investigation and report.

This prosecution was the result of a joint investigation of the Richmond County Sheriff’s Office and the FBI’s Computer Crime Child Exploitation Task Force.  This case was brought as part of Project Safe Childhood, which is a nationwide U.S. Department of Justice initiative designed to protect children from online exploitation and abuse.  Led by the United States Attorneys’ Offices, 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 identify and rescue victims.

Assistant United States Attorney Nancy Greenwood, Deputy Criminal Chief in the Augusta U.S. Attorney’s Branch Office and Project Safe Childhood Coordinator, is prosecuting the case on behalf of the United States.  For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.

WAYCROSS, GA – Charles W. Johns, 60, of Hoboken, Georgia was sentenced last month by United States Chief District Court Judge Lisa Godbey Wood to 78 months in prison for his role in a methamphetamine conspiracy operating in the Waycross, Georgia area.  Judge Wood previously sentenced 4 others from the Waycross area for their roles in the drug trafficking conspiracy.  Stephen Miles, 30, was sentenced to 124 months in prison; Pamela Moore, 45 and the wife of defendant Johns, was sentenced to 48 months in prison; Corey B. Perkins, 33, was sentenced to 37 months in prison; and, Anna Hambrick, 28, was sentenced to 20 months in prison.       
           
Evidence presented during the sentencing hearings showed that defendant Miles was the leader and organizer of a methamphetamine trafficking ring operating out of the Ware and Brantley County areas.  In January 2012, several undercover purchases of methamphetamine were made from members of the conspiracy.  Eventually, investigating agents executed search warrants where a weapon and a significant amount of methamphetamine were seized.
           
The investigation of the case was led by the DEA and the Brantley County Sheriff’s Office.  The GBI and the Charlton County Sheriff’s Office also assisted in the investigation.  Assistant United States Attorney Carlton Bourne prosecuted the case on behalf of the United States.  For additional information, contact First Assistant United States Attorney James D. Durham at (912) 201-2547.   

STATESBORO, GA - Three federal defendants – PORSCHE S. PINKNEY, TIDAESHA V. TAYLOR, and GREGORY F. SMITH, JR. – pled guilty last week before United States District Court Judge B. Avant Edenfield for their involvement in a stolen identity and tax fraud scheme that was centered in Statesboro, Georgia. 
           
Earlier this year, these 3 defendants, along with 10 others who were also involved in the scheme, were charged with federal crimes ranging from conspiracy to defraud the IRS to identity theft from medical records.  According to evidence presented during hearings in these cases, the participants in the scheme illicitly obtained personal identifiers, such as names, dates of birth, and Social Security numbers, which they then used to prepare and submit fraudulent tax returns in order to unlawfully obtain tax refunds. 
           
The 3 defendants who pled guilty last week were the last to be convicted of the 13 defendants originally charged in this identity theft and tax fraud scheme.  Each of the defendants are listed as follows:

ERICA BALDWIN, 31, of Statesboro, Georgia, pled guilty on June 25, 2013 to wire fraud conspiracy, aggravated identity theft, and misusing medical records.

TRACY DENSON, 44, of Statesboro, Georgia, pled guilty on July 30, 2013 to wire fraud conspiracy, aggravated identity theft, and misusing medical records.

SHAKITA EASON, 30, of Statesboro, Georgia, pled guilty on June 18, 2013 to wire fraud conspiracy, aggravated identity theft, and misusing medical records.

YOLANDA EDMOND, 36, of Statesboro, Georgia, pled guilty on July 11, 2013 to wire fraud conspiracy, aggravated identity theft, and misusing medical records.

GLORIA EVANS, 44, of Statesboro, Georgia, pled guilty on July 11, 2013 to wire fraud conspiracy and aggravated identity theft.

JOSHUA MINCEY, 20, of Statesboro, Georgia, pled guilty on June 25, 2013 to wire fraud conspiracy, aggravated identity theft, and misusing medical records.

PORSCHE S. PINKNEY, 19, of Augusta, Georgia, pled guilty on August 21, 2013 to wire fraud conspiracy, aggravated identity theft, and misusing medical records.

DWAN SCOTT, 32, of Statesboro, Georgia, pled guilty on July 30, 2013 to wire fraud conspiracy and aggravated identity theft.

JENNA SCOTT, 28, of Jacksonville, Florida, pled guilty on July 30, 2013 to wire fraud conspiracy and aggravated identity theft.

GREGORY F. SMITH, JR., 21, of Stone Mountain, Georgia, pled guilty on August 21, 2013 to wire fraud conspiracy and aggravated identity theft.

ASHA K. SPAULDING, 37, of Claxton, Georgia, pled guilty on March 12, 2013 to wire fraud conspiracy, aggravated identity theft, and assisting in the preparation of false tax returns.

TIDAESHA V. TAYLOR, 27, of College Park, Georgia, pled guilty on August 21, 2013 to wire fraud conspiracy and aggravated identity theft.

ANDREA WEBB, 31, of Register, Georgia, pled guilty on June 5, 2013 to wire fraud conspiracy and aggravated identity theft.
           
These defendants face a maximum penalty of twenty years imprisonment for the conspiracy charges, ten years imprisonment for the charge of misusing medical records, and a two-year mandatory, consecutive prison sentence for aggravated identity theft.  Each of these charges also carries a fine of up to $250,000.  Sentencing dates for these defendants have not yet been scheduled.
           
United States Attorney Edward J. Tarver said, “These convictions demonstrate the continuing commitment of the Department of Justice to protecting the identities and the privacy of medical records of American citizens.  This investigation is ongoing.  Our law enforcement partners will continue to track down identity thieves and bring them to justice.”

FBI Special Agent Marcus Kirkland and IRS Special Agent Gwen Weston are the federal law enforcement officers who have been leading the investigation in these cases, in connection with the Statesboro Police Department and other state and local agencies.  Assistant United States Attorneys David Stewart and Lamont A. Belk are prosecuting the cases.  For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 341-7842.

Operation Ruffian targeted drug and gun crimes committed in
Savannah high-crime areas

            SAVANNAH, GA - United States Attorney Edward J. Tarver today announced the successful completion of a joint federal and state anti-gang/violent crime initiative dubbed “Operation Ruffian,” which targeted offenders in the Cuyler-Brownsville and Carver Heights neighborhoods of Savannah.  The investigation was spearheaded by the Savannah Area Regional Gun Enforcement Task Force (SARGE) which was jointly led by the ATF and the Savannah Chatham Metropolitan Police Department (SCMPD). 
           
A total of 40 individuals were targeted for prosecution in the operation.  23 of these defendants are being prosecuted by the Chatham County District Attorney’s Office.  The following 17 individuals were convicted and sentenced in the United States District Court for the Southern District of Georgia:

Samuel A. Graham, 36, of Savannah, Georgia was convicted of drug trafficking.  Graham was sentenced on October 12, 2011 to 151 months imprisonment.

Antwan L. Cross, 35, of  Savannah, Georgia was convicted of possessing a firearm in furtherance of drug trafficking.  Cross was sentenced on July 27, 2011 to 60 months imprisonment.

Brian R. Fallon, Jr., 25, of Savannah, Georgia was convicted of possessing an unregistered firearm.  Fallon was sentenced on November 18, 2011 to 20 months imprisonment.

Johnny J. Early, 34, of Savannah, Georgia was convicted of drug trafficking and for possessing a firearm as a felon.  Early was sentenced on May 9, 2012 to 50 months imprisonment.

Kewan G. Roberson, 23, of Savannah, Georgia was convicted of drug trafficking and for possessing a firearm as a felon.  Roberson was sentenced on May 23, 2012 to 49 months imprisonment.

Randy M. Lewis, 25, of Savannah, Georgia was convicted of drug trafficking and for possessing a firearm as a felon.  Lewis was sentenced on May 7, 2012 to 54 months imprisonment.

Marco O. Washington, 34, of Savannah, Georgia was convicted of drug trafficking.  Washington was sentenced on March 22, 2013 to 60 months imprisonment.

Leearnell J. White, Jr., a.k.a. “Scrootney,” 31, of Savannah, Georgia was convicted of drug trafficking.  White was sentenced on November 7, 2012 to 48 months imprisonment.

Edward B. Cone, 33, of Savannah, Georgia was convicted of possessing a firearm as a felon.  Cone was sentenced on October 17, 2012 to 66 months imprisonment.

Linwood A. Brown, 53, of Savannah, Georgia was convicted of drug trafficking.  Brown was sentenced on November 28, 2012 to 114 months imprisonment.

Eric L. McPherson, 41, of Savannah, Georgia was convicted of drug trafficking.  McPherson was sentenced on October 31, 2012 to 160 months imprisonment.

Dominique A. Bostic, 19, of Savannah, Georgia was convicted of drug trafficking and a related firearm offense.  Bostic was sentenced on October 12, 2011 to 151 months imprisonment.

Willie L. Smith, 30, of Savannah, Georgia was convicted of drug trafficking and for possessing a firearm as a felon.  Smith was sentenced on April 11, 2013 to 72 months imprisonment.

Edward D. Singleton, 31, of Savannah, Georgia was convicted of drug trafficking.  Singleton was sentenced on May 13, 2013 to 151 months imprisonment.

Michael P. Griffin, 23, of Savannah, Georgia was convicted of two separate federal firearm offenses.  Griffin was sentenced on July 24, 2013 to 154 months imprisonment.

Travis L. Young, 19, of Savannah, Georgia was convicted of two separate federal firearm offenses.  Young was sentenced on July 25, 2013 to 180 months imprisonment.

Cedric Reynolds, 24, of Savannah, Georgia for possessing a firearm as a prohibited person.  Reynolds was sentenced on June 21, 2013 to 188 months imprisonment.

According to statistics kept by the SCMPD and evidence presented during numerous guilty plea and sentencing hearings, the individuals charged in the course of this operation were responsible for distributing cocaine and other street drugs valued at over $188,000.  During the operation, investigators executed 14 search warrants and recovered 43 firearms, including 11 stolen firearms, which were used in the commission of crimes.

United States Attorney Tarver made several observations about the significance of the operation: “The persons indicted in this operation were responsible for a consistent pattern of drug dealing and firearms violations in these Savannah neighborhoods.  The criminal acts which they engaged in made it difficult and dangerous for law-abiding residents to go about their daily routines.  As a result of this investigation, 40 offenders have been removed from the two neighborhoods, including 17 convicted of federal offenses in the United States District Court.  The disruption of two local gangs and the incarceration of numerous dangerous criminals should send a firm message to those who would plague our neighborhoods that federal, state, and local authorities are committed to keeping our streets safe from violent drug dealers and gun traffickers.”

The investigative agencies which took part in Operation Ruffian included SCMPD’s Central Precinct Crime Suppression Unit, the Savannah Area Regional Intelligence Center, the Georgia Bureau of Investigation, K9 units of the Chatham County Sheriff’s Office and SCMPD, the SCMPD S.W.A.T. team, the United States Marshal’s Service, the FBI, and the Chatham County District Attorney’s Office.  The operation was led by ATF Special Agent Toby Taylor and SCMPD Detective Kevin Grogan.

The cases presented in United States District Court were prosecuted by Assistant United States Attorneys Karl Knoche, Shane Mayes, Jennifer Solari, and Greg Gilluly.  For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.

AUGUSTA, GA – Carl Lamont Brandon, 39, of Augusta, Georgia, was convicted yesterday by a federal jury after a 1-day trial before U.S. District Court Judge J. Randal Hall for possessing a firearm as a felon on October 8, 2012.

United States Attorney Edward Tarver said, “Through Project CeaseFire, the United States Attorney’s Office will continue to vigorously enforce federal firearms laws to rid the streets of violent felons who carry guns.  Felons who possess firearms can expect to be returned to prison, and serve federal time without the possibility of parole.”

Evidence presented during the trial revealed that Brandon led police on a high speed chase down Bobby Jones Expressway and through parking lots after Columbia County deputies were dispatched to respond to a possible shoplifting offense committed by Brandon at a nearby Wal-Mart.  Upon being cornered by the deputies, Brandon surrendered to authorities and officers found a loaded firearm concealed in a CD case in Brandon’s car.  Brandon was on parole at the time of the incident.

Brandon’s prior felonies include an Aggravated Battery and a Possession of a Firearm During the Commission of a Crime, which resulted after Brandon shot a Richmond County deputy in 1990.  His other violent felony convictions include Criminal Attempt to Commit Armed Robbery, Armed Robbery, and Aggravated Assault.

If deemed to be an Armed Career Criminal, Brandon faces a mandatory minimum sentenced of 15 years to Life, a fine of up to $250,000, and 5 years of supervised release.  Brandon remains in custody pending his sentence.  A sentencing date will be scheduled following completion of a presentence investigation and report.

The case was investigated by Columbia County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).  The case was prosecuted under Project Ceasefire, a joint federal, state and local firearms initiative involving the U.S. Attorney’s Office, ATF and various local police departments.

Assistant U.S. Attorney Nancy C. Greenwood prosecuted the case on behalf of the United States.  For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.

SAVANNAH, GA – HAROLD CHILDERS, 36, and LAVONTAY GATSON, 20, both of Savannah, were arrested on federal charges last week on charges arising from two separate bomb threats.  CHILDERS was charged with making a false statement to FBI agents in connection with a September 18, 2012 bomb threat at Southern States Phosphates on East President Street in Savannah.    GATSON was charged with telephoning a Wal-Mart in Savannah and making a bomb threat on March 2, 2013.

The charge against CHILDERS carries a maximum sentence of 5 years in prison  and a $250,000 fine.  GATSON’S charge carries a maximum penalty of 10 years in prison and a $250,000 fine.  U.S. Attorney Ed Tarver emphasized that a criminal complaint is only an accusation and is not evidence of guilt.  The defendants are entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.

Both arrests arose out of investigations by the FBI. Assistant United States Attorney Charlie Bourne is prosecuting the case on behalf of the United States.  For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.

Assets of Defendants convicted in U.S. v. Bradley also used to satisfy $39.5 million forfeiture order and approximately $15 million in fines

SAVANNAH, GA – United States Attorney Edward J. Tarver announced today the payment of over $27 million in restitution to the victims of the largest fraud case ever prosecuted in the Southern District of Georgia, United States v. Martin J. Bradley III, et al., Case No. 405-059 (S.D. Ga.).

The Bradley case involved the dismantling of a criminal enterprise dealing in blood derivative prescription drugs obtained by fraud and through the black market, then resold through Bio-Med Plus (Bio-Med), then the largest privately held secondary wholesaler of blood derivatives in the country.  Martin Bradley III and Martin Bradley, Jr. were the leaders of the corrupt enterprise who orchestrated fraud schemes from Georgia to Florida to California, Puerto Rico, the Bahamas, and elsewhere, with shell companies and offshore accounts used to perpetrate and conceal the schemes.  After a lengthy investigation, a grand jury sitting in Savannah returned a 288-Count RICO indictment alleging a dozen different schemes to defraud Medicare, Medicaid programs, drugs manufacturers and others of tens-of-millions of dollars worth of prescription drugs essential to the lives of cancer patients and those suffering from AIDS, hemophilia and other illnesses.  After a six-week trial held in Savannah, the jury convicted the Bradleys and Bio-Med of racketeering, money laundering and related charges.  Bio-Med was forfeited to the Government and the Bradleys received stiff prison sentences, 25 years for Bradley III and 15 years for Bradley, Jr.  The Court also entered a restitution order of over $27.8 million; a forfeiture judgment of $39.5 million; and fines totaling over $30 million against the Bradleys and Bio-Med.

A federal receiver was appointed to liquidate the assets of the Bradleys after their convictions.  More than $60 million in assets were liquidated, including jet planes, automobile collections, yachts, vacation homes and office buildings.  As part of the liquidation, the assets of Bio-Med were also sold.

After the Defendants’ direct appeal rights were exhausted, the Government moved the Court to direct that restitution be made to all victims of the Bradley case.  As a result, the Clerk of Court for the Southern District of Georgia this week forwarded United States Treasury checks in the following amounts to the following victims: $2,738,373.50 to Medicare; $10,117,601.03 to Florida Medicaid; $10,419,801.96 to the Genetically Handicapped Persons Program; $2,260,514.01 to Medi-Cal; and, $353,338.52 to Blue Shield of California. An additional $1,907,975.53 will be provided to the SCEET.  In addition to the payments of restitution, proceeds from the liquidation of the Bradleys’ assets have been used to satisfy the $39.5 million forfeiture judgment and approximately $15 million of the fines imposed.

United States Attorney Edward Tarver stated, “Restitution payments made this week to the victims of the Bradley case represent the largest payment of restitution in the history of the Southern District of Georgia.  This is the culmination of an enormous effort by agents and prosecutors to put an end to a corrupt enterprise that sold prescription drugs with fabricated pedigrees and unknown histories to hospitals, pharmacies and doctors nationwide.  No matter how complex the scheme, our mission is to investigate and prosecute criminal enterprises intent upon stealing from the taxpayers of the United States.  Let this case serve as notice to any would-be fraudster that the end of the road not only involves a lengthy prison sentence but also the return of your ill-gotten gains.”

The investigation of the Bradley case was led by FDA-OIG Special Agent Pamela Chambers and IRS-CI Special Agent Michael Palmer.  Agents with ICE Homeland Security Investigations and the Florida Medicaid Fraud Control Unit also assisted with the investigation.   Assistant United States Attorneys James D. Durham, Jeffrey J. Buerstatte, Frederick W. Kramer III, Joseph D. Newman and R. Brian Tanner prosecuted the case on behalf of the United States.

BRUNSWICK, GA: STEPHEN A. KEATING, 53, of Jesup, Georgia, was sentenced yesterday by Chief United States District Court Judge Lisa Godbey Wood to 110 years in prison for his sexual exploitation of minors through the production and distribution of numerous images of child pornography.  Evidence presented at the guilty plea and sentencing hearings showed that between 2009 and 2011, KEATING repeatedly sexually molested three children under the age of 12 to create pictures and videos of that conduct, then distributed images of the abuse.  In addition to those three children, further investigation following KEATING’s guilty plea revealed that KEATING sexually molested 12 minor victims whose abuse was not captured on film.

United States Attorney Edward J. Tarver said, “This Defendant’s lengthy sentence represents the lifetime of pain and anguish he has brought upon his victims.  Depraved acts such as these will bring together every facet of law enforcement to garner the severest punishment allowed by law.  Protecting this country’s children is the highest priority for the Department of Justice and this United States Attorney’s Office.”

“The hideous abuse Stephen Keating inflicted on more than a dozen children can never be erased, but hopefully his victims can find some comfort in the fact that he will never again be a free man,” said Brock D. Nicholson, special agent in charge of HSI Atlanta. “This investigation is a perfect example of the revolution in international law enforcement cooperation in cases involving child exploitation and victim identification. After Danish police first discovered the photos, and less than 24 hours after we identified Keating as the perpetrator, HSI and a host of federal, state and local law enforcement agencies were searching his residence, putting him in handcuffs and rescuing his victims.”  Each count of child exploitation to which KEATING pleaded guilty carried a mandatory minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison, followed by at least 5 years of supervised release.  The count of distribution of child pornography carried a mandatory minimum sentence of 5 years in prison and a maximum sentence of 20 years in prison, followed by at least 5 years of supervised release.  KEATING was also ordered to register as a sex offender.

 The charges against KEATING arose out of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).  This case was brought as part of Project Safe Childhood, a unified and comprehensive strategy to combat child exploitation. Initiated by the Department of Justice in May, 2006, Project Safe Childhood combines law enforcement efforts, community action, and public awareness to reduce the incidence of sexual exploitation of children.  Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Assistant United States Attorney Jennifer G. Solari prosecuted the case on behalf of the United States.  For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 341-7842.                       

AUGUSTA, GA - Carlton Jevon Barnette, 27, originally from Durham, North Carolina, but living in Augusta, Georgia, was sentenced on Tuesday by United States District Court Judge J. Randal Hall to 10 years in prison, followed by 20 years of supervised release, for possessing child pornography.  Barnette will be required to register as a sex offender.  At the conclusion of the sentencing, Barnette was returned to the custody of the United States Marshal Service to serve his sentence.

According to the evidence presented at Barnette’s plea and sentencing hearings, in May 2011, Homeland Security Investigation agents identified an Internet user in Atlanta, later identified as Barnette, who was sharing child pornography through a peer-to-peer file-sharing program on his computer.  Agents learned that in June 2011, Barnette moved with his fiancé to Augusta, where he continued to download and possess child pornography, unbeknownst to his fiancé and her family.  Upon the execution of a federal search warrant, several of Barnette’s computer devices were seized and found to contain at least 95 videos depicting the sexual abuse of children of various ages, including some as young as five years old.  There was no evidence, however, to suggest that Barnette created any of the images he possessed.  Barnette admitted to agents that he had been downloading, viewing, and sharing child pornography for over a year.

United States Attorney Edward J. Tarver stated, “Viewing and sharing images depicting the sexual exploitation of innocent children is a serious and pervasive crime.  The harm inflicted on these young victims continued every time the Defendant viewed these images and shared them with others.  There is no higher priority within the Department of Justice than the protection of our Nation’s children.  The United States Attorney’s Office will continue to prosecute those who promote, facilitate and create markets for the exploitation of children.” 

This case was brought as part of Project Safe Childhood, a U.S. Department of Justice initiative designed to protect children from online exploitation and abuse.  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 identify and rescue victims.
     
The case was the result of an investigation conducted by the Department of Homeland Security, Homeland Security Investigations (formerly Immigration and Customs Enforcement) out of Atlanta.  Assistant U.S. Attorney Nancy Greenwood prosecuted the case.  For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.

BRUNSWICK, GA – Gerald Roberson, 46, of Nahunta, Georgia, was sentenced today by United States Chief District Judge Lisa Godbey Wood to 262 months in prison for his roles in a drug trafficking conspiracy and an insurance fraud scheme.

During the guilty plea and sentencing hearings, the evidence showed that Roberson was a leader of a conspiracy that stretched from Georgia, to Texas, to Mexico, and involved over 1,000 pounds of marijuana, over 50 pounds of methamphetamine, and an untold number of prescription drugs.  In addition, Roberson helped commit an arson in an effort to defraud insurance companies of over $58,000 in claims.

Chief Judge Wood earlier sentenced two additional Brantley County residents for their roles in the criminal conduct. Harold Lee Ragland, 48, was sentenced on July 2, 2013, to 18 years in prison for his role in the drug trafficking conspiracy and insurance fraud scheme.  Decia Roberson, 45, was sentenced to 44 months for her role in the drug trafficking conspiracy.  Decia Roberson is the ex-wife of Gerald Roberson.

The case was investigated by the DEA, the GBI, and the Brantley County Sheriff’s Office.  Assistant U.S. Attorney Carlton Bourne prosecuted the case on behalf of the United States.  For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.        

AUGUSTA, GA:  Doctors Hospital of Augusta, LLC, which is owned and operated by the for-profit hospital chain, HCA Inc., and Radiation Oncology Associates, LLP, of Augusta, Georgia, have agreed to pay the United States a total of $1,020,000 to settle allegations that they submitted or caused the submission of false claims to the Medicare and TRICARE programs for certain radiation oncology procedures that were allegedly performed without the requisite level of physician supervision.

The civil settlement resolves allegations that were originally part of a federal lawsuit unsealed on July 3, 2013.  The lawsuit was filed under the whistleblower provisions of the False Claims Act.

The case was investigated by Special Agent Ryan S. Coble, Department of Health and Human Services, Office of Investigations; Special Agent Randy J. Temples, Department of Defense, Defense Criminal Investigative Services; and Investigator Kimberly Reinken of the United States Attorney’s Office, Southern District of Georgia.  The United States was represented by Assistant United States Attorney Scott R. Grubman.

For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.

SAVANNAH, GA: RASHELLA REED, 41, from Riverdale, Georgia; DERRICK ROBINSON, 41, also from Riverdale; and, TORY HARDWICK, 21, from Chattanooga, Tennessee, were convicted last week after a 4-day jury trial before United States District Court Judge William T. Moore, Jr. for their roles in an $8 million fraud upon the Supplemental Nutrition Assistance Program (SNAP), commonly known as the Food Stamp Program, and the Women, Infant and Children Program (WIC). 

According to evidence presented during the trial, the defendants conspired to traffick over $8 million in government benefits from SNAP and the WIC program, and to launder the proceeds of their ill-gotten gains.  The scheme included 13 storefronts throughout Georgia, including stores in Savannah, Augusta, Atlanta, Decatur, Macon and Columbus.  Defendants Reed, Robinson and Hardwick owned or operated the Decatur, Georgia store known as “The Baby Spot.”  The 13 stores amounted to “pretend” grocery stores, which were used as a front to buy over $8 million in food stamp benefits and WIC vouchers for cash.  SNAP and WIC recipients were paid anywhere from $.10 to $.60 on the dollar for their benefits; the defendants and other conspirators pocketed the rest.  A total of 16 defendants were charged with the scheme; the other 13 defendants pled guilty.

United States Attorney Edward J. Tarver said, “SNAP and WIC are food programs set up to help those who need help.  These defendants scammed federal food programs and swindled American taxpayers.  Let this case serve as notice to any would-be fraudster that if you exchange food stamps and WIC vouchers for cash, you can expect your next meal to be served from the chow-line at a federal prison.”

Karen Citizen-Wilcox, Special Agent-in-Charge of the USDA-OIG said, “The United States Department of Agriculture, Office of Inspector General, remains diligent in working with federal, state, and local law enforcement and the Department of Justice to investigate and prosecute individuals and entities bent on defrauding, through trafficking, Agriculture food programs that have been created to provide food purchasing power to those who would otherwise not have such purchasing power.  The American taxpayer expects that the tax dollars used to fund such programs will be used for the intended purposes of the programs. The Office of Inspector General will continue its diligence in working with its law enforcement partners to pursue prosecution of individuals such as those convicted in this investigation to ensure the integrity of Agriculture programs.”    

The prosecution of this case arose out of an investigation led by Special Agent Salina Walker of the United States Department of Agriculture, Office of Inspector General.  Assistant

AUGUSTA, GA – Christopher Ceolinski, 38, of Blackstone, Massachusetts pled guilty today before United States District Court J. Randal Hall for receiving child pornography and transferring obscene material to a person under the age of 16. Ceolinski faces a mandatory minimum of five years imprisonment and a maximum of thirty years on the two charges. He will be required to register as a sex offender, and will be subject to a term of supervised release of between five years and life. Following the guilty plea, Ceolinski was returned to the custody of the United States Marshal Service to await sentencing.

According to the evidence presented at Ceolinski’s plea hearing, in July 2011, Ceolinski, initially posing as a 20-year-old, sent an unsolicited friend request to a 15-year-old girl in Lincolnton, Georgia, which was accepted. The two began regular communications, which quickly became sexual in nature. Beginning in August 2011, Ceolinski, who had admitted his true age of 36, sent obscene images of himself to the girl over the Internet and through messaging systems. Several months later, he also sent an iPod Touch to the girl so she could send sexually explicit images of herself to him, as he requested. Ultimately, Ceolinski traveled to Georgia to secretly meet with the girl. Some time later the girl’s mother became aware of the communications, and contacted law enforcement.

When Ceolinski was arrested in Massachusetts on a federal complaint filed in Augusta, his mobile phone was found to contain illegal images of the 15-year-old victim. Ceolinski admitted to Federal Bureau of Investigation agents the length and nature of his contact with the Lincolnton girl. Ceolinski was subsequently detained and transferred to Georgia to face the charges here.

United States Attorney Edward J. Tarver stated, “This Defendant used social networking sites to locate and prey on innocent children. This type of exploitation constitutes a serious and heinous crime that results in an immeasurable, long-lasting, impact on the child. There should be no doubt that the United States Attorney’s Office will prosecute those who promote and facilitate these crimes, as there is no higher priority within the Department of Justice than to protect our Nation’s children. ”

This case was brought as part of Project Safe Childhood, a U.S. Department of Justice initiative designed to protect children from online exploitation and abuse. 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 identify and rescue victims.

The case was the result of an investigation conducted by the Lincoln County Sheriff’s Office and the Federal Bureau of Investigation. Assistant U.S. Attorney Nancy Greenwood prosecuted the case. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.

AUGUSTA, GA: BRYANT KEITH EVANS WEBB, 44, of Augusta, Georgia, was sentenced on June 27, 2013 by United States District Court Dudley H. Bowen, Jr. to 15 years imprisonment based on WEBB’s earlier guilty pleas to three counts of bank fraud, one count of wire fraud, and one count of aggravated identity theft.

Evidence presented at hearings in this case showed that while working at Peoples Funeral Home in Augusta, Georgia, WEBB defrauded his employer and deceased individuals’ families out of more than $215,000 from insurance policy proceeds and bank accounts. After leaving Peoples Funeral Home, WEBB began working at Mother and Daughter Personal Care Home in Augusta, Georgia, where he stole over $33,000 from disabled nursing home residents, some of whom are veterans.

United States Attorney Edward J. Tarver said, “Even though this defendant had an extensive history of financial crimes, he obtained employment that gave him access to some of the most vulnerable victims possible. In those positions of trust, he took advantage of the elderly, the disabled, and grieving families. The lengthy prison sentence in this case protects the community from the defendant’s continued crimes and sends a message that such reprehensible conduct cannot be tolerated.”

Judge Bowen has delayed ordering WEBB to pay restitution to the victims of his crimes for 90 days to allow time for anyone who believes that they are a victim of WEBB’s crimes to come forward with that information. If you believe you are a victim, please contact:

David M. Stewart
United States Attorney’s Office
P.O. Box 2017
Augusta, Georgia 30903
(706) 724-0517

After he is released from prison, WEBB will serve five years of supervised release. Regarding the length of the prison sentence, Tarver noted that there is no parole in the federal system.

Investigator Michael Lanham of the Richmond County Sheriff’s Office and FBI Special Agent Paul Kubala conducted the investigation of WEBB. Assistant United States Attorney David Stewart prosecuted the case. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.

AUGUSTA, Ga. – Demetrius L. McKinney, 33, of Augusta, Georgia, was sentenced today by United States District Judge J. Randal Hall, to 18 years 9 months in prison for possessing a handgun as a convicted felon.  He was also sentenced to serve 5 years of supervised release upon his release from prison.

Evidence presented during the guilty plea and sentencing hearings revealed that in May 2012, McKinney possessed a loaded firearm in the glove-compartment of a car.  McKinney said he had the gun “for protection.”  Prior to possessing the gun McKinney had been convicted of Burglary, two serious drug offenses, and an Aggravated Assault, making him an “armed career criminal” under federal law and subjecting him to a minimum mandatory sentence of 15 years.

During the sentencing hearing the evidence revealed that McKinney committed a number of his prior felonies while on bond, parole, or probation in the state judicial system.  The Court cited McKinney’s complete lack of respect for the law, high likelihood of recidivism, and clear record of an inability to abide by release conditions, as factors contributing to the lengthy prison term.

The case was investigated by Georgia State Patrol, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).  The case was prosecuted under Project Ceasefire, a joint federal, state and local firearms initiative involving the U.S. Attorney’s Office, ATF and various local police departments.

United States Attorney Edward Tarver said: “Through Project Ceasefire, the United States Attorney’s Office will continue to vigorously enforce federal firearms laws.  Project Ceasefire has proven to be an effective tool in the Department of Justice’s efforts to rid the streets of dangerous felons who carry guns.  Felons who possess firearms can expect to be returned to prison, and serve federal time without the possibility of parole. ”

Assistant U.S. Attorney Lamont A. Belk prosecuted the case on behalf of the United States.  For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.

AUGUSTA, GA – Starke Allen Hawkins, 60, of Austell, Georgia was sentenced on June 19, 2013 by United States District Court J. Randal Hall to 17½  years in prison, followed by 20 years of supervised release, for receiving child pornography.  Hawkins will be required to register as a sex offender.  At the conclusion of the sentencing, Hawkins was returned to the custody of the United States Marshal Service to serve his sentence.

According to the evidence presented at Hawkins’ plea and sentencing hearings, in April 2012, a computer storage device, later determined to be that of Hawkins, contained approximately 100 images of child pornography depicting prepubescent children engaged in sexual acts.  The device also reflected online chats of a highly sexual nature between Hawkins and at least one minor.  When interviewed by an Federal Bureau of Investigation agent, Hawkins admitted that he had downloaded and viewed child pornography images, and had shared images with a minor female.  Hawkins’ computer and storage media were found to contain over 530 still images and at least 3 video images of child pornography. At the sentencing hearing, Hawkins admitted to having a serious problem and hoped to get treatment while in prison.

  United States Attorney Edward J. Tarver stated, “The exchange of images depicting the sexual exploitation of innocent children is a serious and heinous crime.  The abuse to these young victims continued every time the Defendant viewed these images and shared them with others.  There is no higher priority within the Department of Justice than the protection of our Nation’s children.  There should be no doubt that the United States Attorney’s Office will prosecute those who facilitate and create a market for the violent sexual assault of children.” 

This case was brought as part of Project Safe Childhood, a U.S. Department of Justice initiative designed to protect children from online exploitation and abuse.  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 identify and rescue victims. 
   
The case was the result of an investigation conducted by the Federal Bureau of Investigation.  Assistant U.S. Attorney Nancy Greenwood prosecuted the case. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.

Undercover ATF agents purchased, seized 189 firearms during “Operation Pulaski”

SAVANNAH, GA – 17 federal indictments, unsealed today in federal court, have charged 33 defendants with federal firearm, drug trafficking or other federal offenses.  Four defendants were charged by Chatham County authorities on state firearm and drug offenses.   Additionally, eight defendants were previously indicted and prosecuted in 2012.  All of the federal and state charges derive from a lengthy undercover investigation dubbed “Operation Pulaski.”      
                 
The United States Attorney’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Savannah-Chatham Metropolitan Police Department (SCMPD) initiated Operation Pulaski in late 2011.  During the operation, undercover ATF agents purchased guns and drugs from multiple criminal organizations whose scope ranged from regional to international.  The undercover agents were able to infiltrate these organizations over a period of time, ultimately purchasing 189 firearms, including handguns, assault rifles, sawed-off shotguns and machine guns; illegal drugs, including over 200 grams of heroin and more than 4 kilograms of cocaine; and stolen vehicles.  The investigation revealed that the vehicles were stolen in the New York City area and then transported to the southeastern United States for resale or for shipment abroad for resale.  Agents worked in cooperation with the National Insurance Crime Bureau for the return or re-designation of the automobiles recovered in the investigation.  26 of the individuals who sold firearms and drugs to the undercover agents are alleged to be convicted felons.  11 of the individuals investigated are believed to be illegal aliens.  In addition, a number of the guns purchased by undercover agents were previously reported stolen.

United States Attorney Edward J. Tarver stated, “The Department of Justice works tirelessly to protect the personal safety and the property of its citizens.  Operation Pulaski was a relentless effort to remove illegal guns from the streets of our communities and to halt the illegal sale of guns, especially where the transactions were being conducted by violent criminals.  This undercover operation serves as notice to the criminal element that if you traffic in firearms, drugs, or stolen cars in this district, you will be apprehended and you will be prosecuted.”
                                                           
“This operation is the essence of great law enforcement collaboration and teamwork in removing illegal firearms and narcotics from our communities,” said Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Christopher Shaefer. “ATF and our law enforcement partners stay committed to identifying, apprehending, and prosecuting dangerous criminals and this investigation exemplifies this commitment.”

SCMPD Chief Willie Lovett said, “The success of Operation Pulaski was achieved through the coordinated efforts of Metro, the U.S. Attorney and ATF and that cooperation of the three agencies will continue in other operations. The numbers of guns, stolen vehicles and drugs seized in Pulaski are more than significant; they are staggering, considering the criminal history of most of those arrested. I have no doubt those weapons would have been used against innocent victims and the drugs would have ruined lives. We are very appreciative of the agencies that helped make this possible and look forward to this continued relationship.”    
Mr. Tarver praised the exemplary partnership between the ATF and the Savannah-Chatham County Metropolitan Police Department, and noted that additional investigative support was provided by United States Immigration and Customs Enforcement (ICE), including Customs and Border Patrol, the National Insurance Crime Bureau, and the United States Secret Service.

Following numerous arrests on Tuesday, June 18, and Wednesday, June 19, initial appearances for several of the federally indicted defendants will be held in United States District Court, Statesboro, Georgia, on June 20, 2013. A listing of the 33 defendants newly indicted on federal charges is attached.                                             

Mr. Tarver stressed that an indictment is only an accusation and is not evidence of guilt. All defendants are entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.

Assistant United States Attorneys Cameron Heaps Ippolito and T. Shane Mayes are prosecuting the federal cases for the United States.

For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.

Operation Pulaski Defendants

NAME

AGE

HOMETOWN

Alejandro Jorge Barrero-Rojas

29

Bolivia

Akeem Jamal Edwards

22

Savannah, GA

Alvon Mitchell

33

Savannah, GA

Anthony Solis-Reyes

25

Honduran National

Augustin Rubio-Garcia

31

Hardeeville, SC

Cedric Austin

26

Savannah, GA

Demetrius Mumford

28

Savannah, GA

Derrick Stephens

35

Atlanta, GA

Eduardo Cruz-Camacho

32

Savannah, GA

Naquan Trell Elliot

19

Savannah, GA

Eric Dyches

41

Savannah, GA

Hermino Garcia-Rodriguez

25

Garden City, GA

Gustavo Reyes-Sosa

25

Bluffton, SC

Herbert Carter

31

Savannah, GA

Javier Garcia-Rodriguez

29

Garden City, GA

Javier Murillo-Solis

32

Hilton Head, SC

Jeffrey Barnes

50

Savannah, GA

Juan Zapien-Pacheco

26

Hardeeville, SC

Leonardo Moreno-Romero

23

Hardeeville, SC

Luis Alonso

34

Hardeeville, SC

Markus Brown

29

Savannah, GA

Martin Anguiano

45

Ridgeland, SC

Maximigo Ortega

34

Savannah, GA

Michael Holsey

21

Savannah, GA

Miguel Hernandez-Landeros

26

Garden City, GA

Mikael Oliver

18

Savannah, GA

Sonny Vasquez

28

Bluffton, SC

Tyreik Watson

34

Savannah, GA

Walis Parra-Reyes

31

Bluffton, SC

Wendell Brantley

35

Bluffton, SC

Reginald Black

20

Garden City, GA

Roberto Barrero

45

Bolivia

Matthew Vasquez

22

Savannah, GA

SAVANNAH , GA: ROBERT A. FLAESCH, 46, of Savannah, Georgia, was sentenced last week to serve 20 years in federal prison by U.S. District Court Judge William T. Moore, Jr. for sexually exploiting a minor.         
                                
United States Attorney Edward J. Tarver said, “This defendant admitted to knowingly using a child to engage in sexually explicit conduct for the purpose of producing child pornography. The U.S. Attorney’s Office aggressively prosecutes individuals, like this defendant, who are involved in the sexual exploitation of children.  FLAESCH’S prosecution sends a message that we will do all in our power to protect our children from such predatory acts.”  
  
 The evidence presented during FLAESCH’S guilty plea and sentencing hearings showed that between 1998 and 2003, FLAESCH was involved in a relationship with the minor’s mother.  He periodically resided with the mother and child at different locations in the Southern District of Georgia, including Tybee Island and Pooler Georgia.  During this time, FLAESCH hid a video camera at different locations within the residences and filmed the young child in various states of undress.  He also crept into the sleeping child’s room and filmed himself engaging in sexually explicit conduct with the minor child.  In 2011, the Garden City Police Department was provided with a tape of the videos recorded by FLAESCH.  The FBI investigated the matter and was able to determine the identity of the child on the videos, who is now an adult.  Federal agents arrested FLAESCH this year in Detroit, while he was returning from a trip to the Philippines.

FLAESCH was also ordered to serve 3 years of supervised release and to register as a sex offender upon his release from prison.  There is no parole in the federal system. 

SAVANNAH , GA: WILLIAM ELLIEN, 57, of Savannah, Georgia, was sentenced yesterday in federal court by U.S. District Court Judge William T. Moore, Jr., to 30 months in prison for exchanging prescriptions for highly addictive drugs in exchange for sex.  Ellien was also sentenced to serve 3 years of supervised release upon his release from prison and ordered to surrender all of his medical licenses.

According to the evidence presented during the guilty plea and sentencing hearings, from 2009 until 2012, Dr. William Ellien, a once prominent Savannah Psychiatrist and a former Lt. Col. with the United States Army, traded hundreds of prescriptions for oxycontin, hydrocodone, Xanax, and other highly addictive drugs in exchange for sexual acts with multiple women.  Some of Ellien’s victims were strip-club dancers, who he befriended and then exchanged prescriptions for sexual favors.  The evidence also showed that Ellien met numerous women at hotels, restaurants and other locations to engage in the illicit activity.  None of these women were his patients; many were addicts or became addicted as a result of Ellien’s criminal conduct.

United States Attorney Edward Tarver stated, “This defendant completely ignored his oath to ‘do no harm,’ all the while feeding the addiction of others for his own personal gratification.  Now, he’ll do no harm serving a stiff prison sentence.”

This case was investigated by the DEA and prosecuted by Assistant United States Attorney E. Greg Gilluly, Jr.  For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.

SAVANNAH, GA: RICO LAVON EDWARDS, 30, of Savannah, Georgia, pled guilty earlier this month before United States District Court Judge B. Avant Edenfield for his role in the armed robberies of the Savannah Postal Credit Union and of Barnett Educational Supplies. 

According to evidence presented during his guilty plea hearing, on November 8, 2012, EDWARDS, along with an accomplice, committed an armed bank robbery at the Savannah Postal Credit Union, and took less than $1000 in cash.  Less than two weeks later, on November 19, 2012, EDWARDS robbed Barnett Educational Supplies in Savannah, Georgia.

The armed bank robbery count to which EDWARDS pled guilty carries a maximum statutory penalty of up to 25 years in prison; a fine up to $250,000; and 5 years of supervised release.  The commercial robbery count to which EDWARDS also pled guilty carries a maximum statutory penalty of up to 20 years in prison; a fine up to $250,000; and 3 years of supervised release. EDWARDS sentencing will be scheduled after the United States Probation Office completes a presentence investigation.

The charges against EDWARDS were the result of a joint investigation conducted by the FBI and the Savannah-Chatham Metropolitan Police Department.  Assistant United States Attorneys J. Maria Waters and Brian Rafferty are prosecuting the case on behalf of the United States.  For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.

BRUNSWICK, GA – Thomas John Mumford, 26, of Kingsland, Georgia was sentenced on May 13, 2013 by United States District Court Judge Lisa Godbey Wood to 17½  years in prison, followed by 15 years of supervised release, for distributing child pornography.  Mumford will be required to register as a sex offender.  At the conclusion of the sentencing, Mumford was returned to the custody of the United States Marshal Service to serve his sentence.

According to the evidence presented at Mumford’s plea and sentencing hearings, in February 2012, Mumford was posting child pornography images on the Internet to be shared with others.  When interviewed by a special agent with Federal Bureau of Investigation, Mumford admitted that he had regularly downloaded and viewed child pornography images, and encouraged a young person to live-stream a video of themself taking a shower to him.  Mumford’s computer was found to contain over 730 still images and 25 video images of child pornography. At the sentencing hearing, Mumford admitted to having a serious problem and hoped to get treatment while in prison.

United States Attorney Edward J. Tarver stated, “The sharing of images depicting the sexual abuse of innocent children is a serious and heinous crime.  The abuse to these young victims continued every time the Defendant viewed these images and made them available to others over the Internet.  There is no higher priority within the Department of Justice than the protection of our Nation’s children.  There should be no doubt that the United States Attorney’s Office will prosecute those who facilitate and create a market for the violent sexual assault of children.” 

This case was brought as part of Project Safe Childhood, a U.S. Department of Justice initiative designed to protect children from online exploitation and abuse.  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 identify and rescue victims.
   
The case was the result of an investigation conducted by the Federal Bureau of Investigation.  Assistant U.S. Attorney Nancy Greenwood prosecuted the case. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.                     

BRUNSWICK, GA: STANLEY SMITH, 61, of Douglas, Georgia, pled guilty yesterday before Chief U.S. District Court Judge Lisa Godbey Wood for distributing drugs to his customers without a legitimate medical purpose.

According to evidence presented during his guilty plea hearing, SMITH owned and operated Malcolm’s Drug Store located in Douglas, Georgia.  A month ago, state and federal investigators received information that Smith had been trading very addictive prescription drugs for sex acts with multiple women since 2010.  Some of women were addicts or became addicted to the drugs SMITH provided.  In one instance, SMITH provided a woman with up to 360 hydrocodone pills a week.  In an effort to hide his criminal activity, SMITH used aliases at various hotels, and would tape drugs and money on the outside of an electric box outside of his pharmacy.  When approached by investigating agents, SMITH admitted he had traded drugs for sex for more than two years.

U.S. Attorney Edward Tarver stated, “This defendant used his pharmacy license as a license to deal drugs.  He preyed upon those addicted to drugs and caused others to become addicted, all for his own personal gratification.  This pharmacist will now exchange a white coat for an orange jumpsuit.”

SMITH faces up to 10 years in prison and a fine up to $500,000.  There is no parole in the federal system.  SMITH will be sentenced after the U.S. Probation Office completes a presentence investigation.

This case was investigated jointly by the DEA and the Georgia Drugs and Narcotics Agency.  E. Greg Gilluly, Jr. is prosecuting the case on behalf of the United States.  For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.        

DUBLIN, GA – A federal indictment has charged six defendants with a conspiracy to manufacture methamphetamine.  The indictment results from a joint investigation by the ATF and the Johnson County Sheriff’s Office (JCSO).

United States Attorney Edward Tarver said, “Investigations like these are the result of outstanding cooperation between federal, state and local law enforcement agencies.  We are committed to bringing justice to those who profit from trafficking meth and other poison in our communities.”

If convicted of the drug conspiracy charge, each defendant faces a maximum statutory penalty of 20 years in prison and $1 million fine.  The six defendants indicted on federal charges include:

            James A. Willis, 31, Tennille, Georgia;             April M. Johnson, 34, Wrightsville, Georgia;             Jenna N. Waller, 28, Tennille, Georgia;             Daniel L. Wittmer, 28, Wrightsville, Georgia;             Krystal N. Wynn, 31, Wrightsville, Georgia; and,             Justin H. Price, 23, Wrightsville, Georgia.
           
            The JCSO and ATF arrested the defendants earlier this week.  Initial court appearances were held on May 2 at the federal courthouse in Dublin.

            Mr. Tarver emphasized that the indictment is only an accusation and is not evidence of guilt.  The defendants are entitled to a fair trial, during which, the Government bears the burden to prove guilt beyond a reasonable doubt.

            Assistant United States Attorney Lamont A. Belk is prosecuting the case for the United States.  For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.

BRUNSWICK, GA: AVETIK MOSKOVIAN, 46, an Armenian National, plead guilty Tuesday before Chief United States District Court Judge Lisa Godbey Wood to his role in a conspiracy launder approximately $1.5 million in funds defrauded from Medicare through a phony medical business in Brunswick, Georgia.

MOSKOVIAN, who resided in Los Angeles until the time of his arrest and was here in the United States on a permanent residence card from Armenia, pleaded guilty to Money Laundering Conspiracy in violation of Title 18, United State Code, Section 1956(h), before Chief United States District Court Judge Lisa Godbey Wood.
           
According to the evidence presented at MOSKOVIAN’S guilty plea hearing:

From 2007 through 2008, various conspirators defrauded Medicare through a durable medical equipment company in Brunswick, Georgia, known as Brunswick Medical Supply.  These conspirators submitted millions of dollars in phony claims for health care services that were never provided.  The evidence showed that the conspirators stole the identities for doctors and patients from multiple different states, including Alaska, California, New York, and Ohio, and even submitted claims for people that were deceased at the time that he claimed to have provided them the medical equipment.

Once Medicare paid for these phony claims, MOSKOVIAN and other took numerous steps to launder the stolen money.  MOSKOVIAN helped form at least four sham businesses in Los Angeles, opened multiple bank accounts in the names of these businesses, and used these bank accounts to launder the proceeds of the fraud at Brunswick Medical Supply.  MOSKOVIAN engaged in multiple financial transactions within these accounts, including wire transfers and counter withdrawals of tens of thousands of dollars in cash, as part of his effort to help hide the money defrauded from Medicare.

MOSKOVIAN now faces a maximum statutory penalty of up to twenty (20) years in prison; a fine up to $500,000; and 5 years of supervised release.  His sentencing will be scheduled after the United States Probation Office completes a presentence investigation.

United States Attorney Edward J. Tarver said, “Moskovian and others in this criminal organization thought that they could exploit Medicare to steal from this nation’s taxpayers and then avoid detection through this defendant’s money laundering operations.  They were wrong.  With this money laundering conviction, this Office and its law enforcement partners have taken another important step towards cleaning up the fraud in our nation’s health care programs.”

Derrick L. Jackson, Special Agent in Charge of the Atlanta Region for the Office of Inspector General of the Department of Health and Human Services, said “Avetik Moskovian engaged in a scheme to defraud Medicare by conducting numerous financial transactions with money that was generated through unlawful activity.  The OIG strongly pursues those who abuse government healthcare programs for financial gain.”

Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI remains very committed toward providing the much needed investigative resources in protecting such federally funded programs like Medicare from fraud and abuse.  Mr. Moskovian, in diverting those public funds to his personal bank account, denied other individuals the health care that those funds were intended for.”

The prosecution of MOSKOVIAN was part of a multi-jurisdictional investigation involving more than $100 million worth of phony claims submitted to Medicare.  More than 35 defendants were charged as part of this investigation in Brunswick, Georgia, New York, Los Angeles, Cleveland and Albuquerque.  The investigation in the Southern District of Georgia was the result of a multi-agency team of federal, state and local agents, led by the FBI and HHS-OIG), working together to combat health care fraud.

Assistant United States Attorney Brian T. Rafferty prosecuted the case.  For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.

BRUNSWICK, GA: SCHELLA HOPE, 47, a licensed dietician whose business, Hope Nutritional Services, was located in Brunswick, Georgia, and ARLENE MURRELL, 65, a licensed dietician whose business, Quality Nutrition Services, was located in Newnan, Georgia, were charged with various health care fraud offenses in a forty-five count indictment returned by a federal grand jury sitting in Savannah, Georgia earlier this month.

The indictment alleges that HOPE and MURRELL conspired to fraudulently bill the Georgia Medicaid program for nutrition services that were purported to have been provided to children enrolled in Head Start centers located across Georgia.  The indictment also alleges that between January 2005 and September 2011, HOPE submitted bills to Medicaid for these services totaling almost $4 million.

HOPE made her first court appearance in this case on Wednesday at the federal courthouse in Tallahassee, Florida, while MURRELL’s initial court appearance occurred yesterday at the federal courthouse in Brunswick, Georgia.  A trial date has not yet been scheduled.

United States Attorney Edward J. Tarver said, “As the Georgia Medicaid program is jointly funded by the United States government and the State of Georgia, it is fitting that the investigation and prosecution of this case has been a team effort by this office, federal law enforcement agencies, and the Georgia Medicaid Fraud Control Unit.  The United States Attorney's Office and its partners are committed to protecting the financial well-being of government-funded health programs.”

Georgia Attorney General Sam Olens said, “Fraud of taxpayer monies will not be tolerated in any form. Head Start is a program intended to offer assistance to children from low income families.  The allegations that these defendants used the Head Start program and children in need to assist in their scam is especially appalling.”

“This indictment sends a clear message to those who corruptly take advantage of the Medicaid system," said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General for the Atlanta region. “The taxpayers and vulnerable recipients pay the price of Medicaid fraud and those who commit these offenses will be held accountable.”

If convicted, HOPE and MURRELL both face a maximum penalty of ten years imprisonment for the conspiracy charge, while HOPE also faces ten years imprisonment for each of the nineteen counts of health care fraud, and two years imprisonment for each of the twenty-five counts of aggravated identity theft.  Each of these charges also carries a fine of up to $250,000.

United States Attorney Edward J. Tarver emphasized that an indictment is only an accusation and is not evidence of guilt. The defendant is entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt. 

BRUNSWICK, GA – Dustin Francisco Struckman, 24, of Peoria, Illinois was sentenced on yesterday by United States District Court Judge Lisa Godbey Wood to 11 years in prison, followed by 10 years of supervised release, for attempting to distribute child pornography.  Struckman will be required to register as a sex offender.  At the conclusion of the sentencing, Struckman was returned to the custody of the United States Marshal Service to serve his sentence.

According to the evidence presented at Struckman’s plea and sentencing hearings, in January and May of 2011, Struckman, who was then enlisted in the U.S. Navy and located in Kings Bay, was making available for distribution over a peer to peer network various child pornography videos and images.  When interviewed by a special agent with the Naval Criminal Investigation Service, Struckman admitted that he had been downloading and viewing child pornography images for several years, and utilizing a peer to peer network for that purpose.  Struckman’s computer was found to contain at least 33 videos and 16 still images depicting child sexual abuse, with at least one video depicting a child as young as three years old.

United States Attorney Edward J. Tarver stated, “The distribution of images depicting the sexual abuse of innocent children is a heinous crime.  The abuse to these young victims continued every time the Defendant viewed these images and made them available to others through a file-sharing network.  There is no higher priority within the Department of Justice than the protection of our Nation’s children.  There should be no doubt that the United States Attorney’s Office will prosecute those who facilitate and create a market for the violent sexual assault of children.” 

This case was brought as part of Project Safe Childhood, a U.S. Department of Justice initiative designed to protect children from online exploitation and abuse.  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 identify and rescue victims.    

The case was the result of an investigation conducted by the Kingsland Police Department, the Naval Criminal Investigation Service, and the Coast Guard Investigation Service.  Assistant U.S. Attorney Nancy Greenwood prosecuted the case.  file://www.projectsafechildhood.gov/file://www.projectsafechildhood.gov/For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.

SAVANNAH, GA: BO DUKES, 29, and EMILY DUKES, 29, husband and wife from Savannah, Georgia, pled guilty on Monday before United States District Court Judge William T. Moore, Jr. to conspiring to steal over $150,000 worth of property paid for by the Army.

Evidence presented at the guilty plea hearing showed that BO DUKES, a Unit Supply Specialist in the United States Army, ordered televisions, cameras, power tools, cooper wires and other property totaling over $150,000, which he was able to fraudulently bill to the Army through the General Services Administration (GSA).  BO DUKES caused the fraudulently obtained items to be shipped to his personal residence.  He and his wife EMILY DUKES then pawned the items for their own personal benefit.

United States Attorney Edward J. Tarver said, “These Defendants used Bo Dukes position of trust and his authorization to enter into transactions on behalf of the United States Government to steal from the American taxpayers.  Their plan was both unsophisticated and hazardous.  Neither the law nor this United States Attorney’s Office can allow this type of fraud to go unpunished.”

Frank Robey, Director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit said, "We are very pleased with the guilty pleas.  Stealing money during a time of war is reprehensible and we, along with our federal counterparts, will continue to do everything in our investigative power to bring those responsible to justice."

General Services Administration Inspector General Brian D. Miller said, "By working with our law enforcement partners, we were able to stop these individuals from their continuous abuse of American taxpayer money and stealing of government goods.  We will remain vigilant against people who use GSA for personal gain."

BO and EMILY DUKES both face a maximum penalty of 5 years in prison and a fine of up to $250,000.  A sentencing date will be set after the United States Probation Office conduct a presentence investigation.

Agrees to Forfeit $2 Million in Connection with the Operation of a Purported Garden City, Georgia Pain Clinic

SAVANNAH, GA - Nuvest, LLC, a Florida corporation, has pleaded guilty to an offense involving a purported pain clinic in Garden City, Georgia.  Appearing before United States District Court Judge Dudley H. Bowen, Jr. on April 11, the corporation, through counsel, entered a plea of guilty to maintaining a drug-involved premises known as East Health Center.  The corporation, which provided the funds used to launch and operate the clinic, admitted that the clinic was opened for the purpose of dispensing oxycodone, hydrocodone, and other drugs without legitimate medical purpose.  The clinic operated in Garden City from February through May of 2011.  As part of a plea agreement, the corporation agreed to forfeit the sum of $2,000,000, representing proceeds obtained as a result of the violation.

United States Attorney Edward Tarver said, “Pill mills are opened for the sole purpose of  profiting from the unlawful dispensation of powerful, addictive, and often dangerous drugs.  These drugs are abused by either the patients visiting the clinics or end up being unlawfully sold to others.  An important goal in all of our law enforcement efforts is to deprive violators of their ill-gotten gains. I am confident that this prosecution sends a clear and unmistakable message that the United States intends to pursue the forfeiture of unlawful drug proceeds with great vigor.”

An extensive financial investigation of Nuvest, LLC was conducted by the DEA, GBI, and IRS - Criminal Investigations.  Assistant United States Attorneys Karl Knoche, Greg Gilluly, and Jeff Buerstatte are prosecuting the case for the Government.  For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.

BRUNSWICK, GA - Lewis Jackson Sr., 58, a resident of Brunswick, Georgia, was sentenced last week by Chief United States District Judge Lisa Godbey Wood to 6 months in prison for unlawfully acquiring loggerhead sea turtle eggs, in violation of the Lacey Act.  Among other things, the Lacey Act makes it unlawful for any person to acquire, receive, and transport loggerhead sea turtle eggs, as loggerheads are endangered species under federal law.
    
According to evidence presented during the guilty plea and sentencing hearings, in May, 2012, Jackson took over 156 loggerhead sea turtle eggs from nests on Sapelo Island, Geogia.  When seized from Jackson, the loggerhead eggs were packaged in a manner indicating they would be sold to others.  Loggerhead eggs fetch as much as $15 per egg on the black market.

United States Attorney Edward Tarver said, “This defendant attempted to profit by unlawfully exploiting an endangered species.   Loggerhead sea turtles are a national treasure that must be protected for our enjoyment and that of future generations.”

Darwin Huggins, Acting Special Agent in Charge, Southeast Region, U.S. Fish and Wildlife Service, Office of Law Enforcement, said of Jackson’s sentence: “This sentence sends a loud and clear message that the commercialization of Southeast Georgia coastal natural resources will not be tolerated. We take very seriously our mission to support our state counterpart wildlife enforcement agencies and we will continue to concentrate on and aggressively pursue individuals who are involved in the illegal trade of protected species of wildlife.”    

In addition to his prison sentence, Jackson was ordered to perform 156 hours of community service, an hour for each loggerhead sea turtle egg taken.

Assistant United States Attorneys E. Greg Gilluly, Jr. prosecuted the case for the United States.  For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.          

Law Enforcement Officers Arrest 23 on Federal and State Charges

STATESBORO, GA: The federal grand jury sitting in Savannah, Georgia returned six indictments yesterday charging 12 defendants with 115 violations of federal law involving fraudulent tax returns. The federal crimes charged in these indictments range from a conspiracy to defraud the Internal Revenue Service to identity theft from medical records. All of these indictments allege that the defendants illicitly obtained personal identifiers, such as names, dates of birth, and Social Security numbers, and used these means of identification to prepare and submit fraudulent tax returns in order to obtain tax refunds which were then converted to the defendants’ use.

Based on these federal charges and related state crimes, law enforcement officials are arresting 21 individuals today in Georgia, one defendant in Ohio, and one defendant in Florida, who are listed below. These arrests are part of the same long-term investigation which led to multiple search warrants being executed in Statesboro, Georgia in September 2012. Initial federal court appearances for the federally indicted defendants who were arrested in Statesboro, Georgia are scheduled for April 4, 2013 in Savannah, Georgia.

United States Attorney Edward J. Tarver said, “These indictments and arrests demonstrate the commitment of the United States Attorney’s Office to protecting the privacy of medical records and the hard-earned money of honest taxpayers. While April 15th is traditionally seen as the end of tax season, this investigation is ongoing. Our law enforcement partners will continue to trace electronically-filed fraudulent tax returns to track down these identity thieves and put them in handcuffs.”

IRS Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot said, “Today's announcement exemplifies IRS Criminal Investigation's intense focus and rigorous pursuit of perpetrators of identity theft and refund fraud. IRS is extremely grateful for the cooperation and assistance we have received from our partners at the local, state and federal level. Be assured that IRS Criminal Investigation, with our law enforcement partners, will continue to be proactive in the investigation of those individuals who engage in similar behavior.”

Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated, “Today’s extensive joint law enforcement actions resulting in almost two dozen arrests demonstrates the growing problem involving tax refund related fraud and, more importantly, the growing law enforcement response to address it. The FBI will continue to work with its various law enforcement partners, to include providing additional resources, to disrupt such groups engaged in these types of tax fraud activities.”

Statesboro Director of Public Safety Wendell Turner said, “The Statesboro Police Department has been working with our local and federal counterparts to apprehend the persons responsible for defrauding the government and individuals through a variety of criminal schemes. We are very proud of these partnerships and the results they yield for our citizens. This investigation is just another example of everyone working together, sharing resources, information and expertise for the common good of our community.”

If convicted, each federal defendant faces a maximum penalty of twenty years imprisonment for the conspiracy charge, twenty years imprisonment for each count of filing fraudulent tax returns, ten years imprisonment for the charge of misusing medical records, and a two-year mandatory, consecutive prison sentence for each charge of aggravated identity theft. Each of these charges also carries a fine of up to $250,000.

United States Attorney Edward J. Tarver emphasized that an indictment is only an accusation and is not evidence of guilt. The defendants are entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.

FBI Special Agent Marcus Kirkland, IRS Special Agent Gwen Weston, and SPD Sgt. James Winskey, assisted by their agencies’ colleagues, are conducting the investigation which led to these indictments and arrests. Also assisting in today’s arrests are the U.S. Secret Service, Georgia Bureau of Investigation, Georgia State Probation Office, and the sheriff’s offices for Bulloch and Richmond counties. Assistant United States Attorneys David Stewart and Lamont A. Belk are the federal prosecutors in these cases. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 341-7842.

List of 12 Federal Defendants with their age and current residence

ERICA BALDWIN, 31, of Statesboro, Georgia
TRACY DENSON, 44, of Statesboro, Georgia
SHAKITA EASON, 30, of Statesboro, Georgia
YOLANDA EDMOND, 36, of Statesboro, Georgia
GLORIA EVANS, 44, of Statesboro, Georgia
JOSHUA MINCEY, 20, of Statesboro, Georgia
PORSCHE PINKNEY, 19, of Augusta, Georgia
DWAN SCOTT, 32, of Statesboro, Georgia
JENNA SCOTT, 28, of Jacksonville, Florida
GREGORY SMITH, 21, of Statesboro, Georgia
TIDAESHA TAYLOR, 27, of College Park, Georgia
ANDREA WEBB, 31,of Register, Georgia

List of 11 Individuals Arrested on State Warrants with their age and current residence

SANTRAVIS JERROD BROWN, 23, of Statesboro, Georgia
REGINALD RAYNARD ELLISON, 29, of Statesboro, Georgia
SANCHEZ ORTEGA HARDEN, 28, of Statesboro, Georgia
CHRYSTAL N. HARLIE, 32, of Statesboro, Georgia
VICTORIA QUINN JOHNSON (BALDWIN), 28, of Statesboro, Georgia
SEAN LEE, 34, of Statesboro, Georgia
MYRON KELSEY RAWLS, 30, of Statesboro, Georgia
VERA RICHMOND, 69, of Statesboro, Georgia
LANIKA LOYONDA WALDEN (MINCEY), 37, of Statesboro, Georgia
MELISSA SHANTEL WHITFIELD, 33, of Statesboro, Georgia
LASHARETT GENET WILKERSON, 30, of Statesboro, Georgia

AUGUSTA, GA:  JAEQUAN S. MALONE, 24, of Columbia, South Carolina, was sentenced earlier this week by United States District Court Judge J. Randal Hall to 48 months imprisonment for his involvement in a conspiracy to fraudulently possess and use credit, debit, and gift cards and electronically-stored account numbers, as well as equipment for making counterfeit cards.  MALONE’s co-defendant, SHIKYM R. WILLIAMS, 25, also of Columbia, South Carolina, was sentenced on February 20, 2013 by the same judge to 72 months imprisonment.

Evidence presented at hearings in this case showed that, in the early morning of May 31, 2011, Taliaferro County Deputy Sheriff Lewis Blanchard pulled over a rental vehicle on Interstate 20 that MALONE, with WILLIAMS as his passenger, was driving 100 miles per hour from Columbia, South Carolina towards Atlanta, Georgia.  A search of the vehicle revealed several credit, debit, and gift cards and a laptop computer and credit card encoder for making counterfeit cards.  Also found in the vehicle was a loaded 9mm pistol.  Further analysis of this evidence revealed over 350 electronically-stored credit and debit card numbers that belonged to other people.

United States Attorney Edward J. Tarver said, “Those who seek to live life in the fast lane using the stolen credit card numbers of innocent victims should take notice of the prison sentences for these defendants.  This office works hand in hand with federal and local law enforcement to see that identity thieves serve hard time.”

In addition to the prison sentences, MALONE was ordered to pay restitution and WILLIAMS was ordered to pay a fine.  Both men will serve three years of supervised release after they are released from prison. Regarding the length of the prison sentences, Tarver noted that there is no parole in the federal system.

Secret Service Special Agent Tom Norris and ATF Special Agent Ron Rhodes conducted the investigation of this case with assistance from the Taliaferro County Sheriff’s Office.  Assistant United States Attorney David Stewart prosecuted the case.  For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.

AUGUSTA, GA: Carlos Newton, 43, from Waynesboro, Georgia, was indicted by a federal grand jury sitting in Savannah earlier this month for his role in the preparation of numerous false and fraudulent federal tax returns.  Newton was arraigned on his federal charges yesterday before U.S. Magistrate Judge W. Leon Barfield.

According to allegations within the indictment, Newton held himself out as an income tax preparer for hire from 2009 through 2011.  During this time, Newton put fictitious businesses, fictitious income, and fictitious expenses on federal income tax forms, which fraudulently qualified some of his clients for refunds through the earned income tax credit.  Newton would then allegedly take a cut of the refunds fraudulently received. 

The indictment charges Newton with 22 separate counts of preparing false tax returns.  If convicted, Newton faces a maximum statutory penalty of 3 years in prison and a $250,000 fine on each count.  An indictment is only an accusation and is not evidence of guilt.  The Defendant is entitled to a fair trial, during which it will be the Government’s burden to prove the Defendants’ guilt beyond a reasonable doubt. 

SAVANNAH , GA: WILLIAM ELLIEN, 57, of Savannah, Georgia, pled guilty yesterday before the United States District Judge William Moore, Jr., for distributing drugs to his customers without a legitimate medical purpose.         

According to evidence presented at the guilty plea hearing, Ellien, a Savannah psychiatrist, exchanged prescriptions for very addictive prescription drugs for sex acts with various women from 2009 through 2012.  Ellien, who remains in federal custody, is facing up to 20 years in prison and a $1,000,000 fine.  There is no parole in the federal system.  A sentencing date will be set upon the completion of a presentence investigation by the United States Probation Office.

United States Attorney Edward J. Tarver said, “This doctor violated his oath, preyed upon patients, and turned into a common criminal, all for his own personal gratification.  Whether street pushers or physicians, all drug dealers can expect that justice will be swift and the punishment will be severe.”    
           
This case is being prosecuted by Assistant United States Attorney, E. Greg Gilluly, Jr.  For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.        

BRUNSWICK, GA: KHOREN GASPARIAN, 30, an Armenian national, was sentenced last Friday by Chief United States District Court Judge Lisa Godbey Wood to 41 months in prison for his role in a conspiracy to defraud Medicare through phony medical businesses in Savannah, Georgia.

GASPARIAN, who at the time of these offenses was in the United States on an expired Visa from Armenia, previously pleaded guilty to a conspiracy to defraud Medicare.  According to the evidence presented at GASPARIAN’s guilty plea and sentencing hearings:

 From 2008 through 2010, GASPARIAN and others opened medical equipment companies in Savannah, Georgia, known as Healthy Family, SOJ Group and Savana Medical.  Once opened, GASPARIAN and his cohorts stole the identities of hundreds of Medicare beneficiaries; stole the identities of dozens of doctors; and, used this stolen information to submit hundreds of thousands of dollars in phony claims to Medicare for health care services that were never provided.  GASPARIAN and others used the stolen identities of doctors and patients from multiple different states, including Alaska, California, New York, and Ohio, and even submitted claims for people that were dead at the time they were alleged to have been provided medical equipment.  GASPARIAN was also connected with at least two other phony health care businesses located in California and New Mexico.  He was responsible for approximately $1 million worth of fraudulent claims submitted to Medicare.

United States Attorney Edward J. Tarver said, “Medicare fraud affects every American taxpayer.   The United States Attorney’s Office has aggressively pursued healthcare fraudsters from around the world who’ve attempted to set up shop here in the Southern District of Georgia.  The risk of detection is high for those who submit fraudulent claims to Medicare and the penalty will be substantial.”

“Criminals who steal from Federal health care programs and taxpayers will be prosecuted to the fullest extent of the law,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General for the Atlanta region.   “The Office of Inspector General and our law enforcement partners will continue to aggressively pursue these thieves to ensure they are held accountable.”

Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI will continue to work with its various law enforcement partners to identify, investigate, and bring forward for prosecution those individuals such as Mr. Gasparian who would steal funds from much needed federal programs such as Medicare.”

In addition to being sentenced to 41 months in prison, GASPARIAN was ordered to pay restitution in the amount of $182,735, and to serve 3 years of supervised release upon completion of his prison sentence.  There is no parole in the federal system.  At the time of his guilty plea in Georgia, GASPARIAN was serving a prison sentence based on his guilty plea to a health care fraud offense in the United States District Court for the District of New Mexico.  After GASPARIAN finishes serving his prison sentences, he will face immigration proceedings that will likely result in his deportation to Armenia.

The prosecution of GASPARIAN in the Southern District of Georgia is part of a multi-jurisdictional investigation involving more than $200 million worth of phony claims submitted to Medicare.  More than 35 defendants were arrested as part of this investigation.  in addition to the Southern District of Georgia, numerous charges were filed in New York, Los Angeles, Cleveland and Albuquerque.

The investigation in the Southern District of Georgia was the result of a multi-agency team of federal, state and local agents, led by the Federal Bureau of Investigation (FBI), the Department of Health and Human Services, Office of the Inspector General (HHS/OIG), and Immigration and Customs Enforcement (ICE), working together to combat health care fraud.  Assistant United States Attorney Brian T. Rafferty prosecuted the case on behalf of the United States.  For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.

BRUNSWICK, GA: Leon Buu Dam, 48, a naturalized American citizen from South Vietnam, pleaded guilty before Chief Judge Lisa Godbey Wood on Thursday, February 28 to two charges relating to the firebombing of Cindy Nails, a business operating on South Tallahassee Street in Hazlehurst, Georgia. The bombing resulted in the total loss of the contents of the business, totaling over $21,000.     

United States Attorney Edward J. Tarver stated, “Whatever his motive, firebombing a commercial business is never the solution.  At a minimum, this Defendant now faces a 15 - year prison sentence.  It is unfortunate that he will now be forced to surrender the rights that he earned on his quest for citizenship.  His arson days are now extinguished.”

Evidence presented at the guilty plea hearing showed that Cindy Nails caught fire just after business hours on December 7, 2010.  The fire destroyed the interior of the building and all its contents.  Arson investigators discovered a ball-style trailer hitch, an alarm clock, and a bundle of matches wrapped in duct tape, along with evidence of a flammable accelerant inside the building. The investigation revealed that Dam had purchased a trailer hitch and alarm clock, just like those found in the business, along with a quart of Coleman kerosene, at a nearby Wal-Mart a few weeks earlier. Surveillance video from nearby businesses on the night of the bombing placed Dam and his vehicle at the business that night.

Dam now faces a mandatory minimum sentence of 15 years in prison.  Mr. Tarver noted that there is no parole in the federal system.  He is presently in the custody of the United States Marshal.

The case was the result of a joint investigation conducted by the ATF, the Georgia State Fire Marshall, and the Hazlehurst Fire Department. Assistant United States Attorney Cameron Heaps Ippolito is prosecuting this case on behalf of the United States.  For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.

STATESBORO, GA – Gary Lenion McDonald, 36, of Pembroke, Georgia, was sentenced to 20 years in prison yesterday by Senior U.S. District Court Judge B. Avant Edenfield for his role in two separate kidnappings in the Bryan County area.

United States Attorney Edward J. Tarver stated, “The kidnappings committed by this defendant and others caused extreme pain and harm to victims they targeted.  Because of timely action by the FBI and its partners in the law enforcement community, the United States Attorney’s Office was able to prosecute those responsible. The United States Attorney’s Office will continue to have as its highest priority the protection of U.S. citizens.”

McDonald pleaded guilty to conspiracy to commit kidnappings, and cooperated in the investigation and prosecution of codefendants Antonio Lamont Murray and Cecil DeWitt Nelson, both of whom were convicted for their roles in the two kidnappings and sentenced to life in prison.  Judge Edenfield took McDonald’s cooperation into account when fashioning his sentence.

The evidence presented during McDonald’s guilty plea hearing, and the trial of codefendant Antonio Lamont Murray, revealed that McDonald, Murray and Nelson conspired to commit two separate kidnappings in the Bryan County area in late 2011 and early 2012. The first kidnapping occurred on December 1, 2011. During this incident, the victim was abducted at gunpoint, beaten, and later released only after a ransom was paid. The second kidnapping occurred on January 12, 2012. The second victim was also abducted at gunpoint and released only after a ransom was paid.

In addition to being sentenced to 20 years imprisonment for his conviction, McDonald was also sentenced to serve a term of 5 years of supervised release, and to pay restitution to the victims of these kidnappings in the amount of approximately $500,000.  Tarver noted that there is no parole in the federal system.

The convictions of McDonald, Murray and Nelson resulted from a joint investigation by the FBI, the U.S. Marshals, NCIS, the Georgia Bureau of Investigation, the Georgia State Patrol, the Bryan County Sheriff’s Office, the Tattnall County Sheriff’s Office, the Bulloch County Sheriff’s Office, the Liberty County Sheriff’s Office, the Richmond Hill Police Department, the Pooler Police Department, the Pembroke Police Department and the Hinesville Police Department.

Assistant United States Attorneys Brian T. Rafferty and Carlton R. Bourne, Jr. prosecuted the case on behalf of the United States.  For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.

BRUNSWICK, Ga. – Alex M. Bennett, 32, of Broxton, Georgia, was sentenced yesterday by Chief United States District Judge Lisa Godbey Wood to 15 years in prison for possessing an assault rifle as a convicted felon.  He was also sentenced to serve 5 years supervised release upon his release from prison.

Evidence presented during the guilty plea and sentencing hearings revealed that Bennett burglarized a residence in Hazlehurst, Georgia, where he stole an SKS semi-automatic rifle with a 20 round magazine.  Because Bennett had three prior convictions for drug offenses and robberies, he was classified as an “armed career criminal” under federal law and faced a minimum mandatory sentence of 15 years.

The case was investigated by the Hazlehurst Police Department and the ATF.  The case was prosecuted under Project Ceasefire, a joint federal, state and local firearms initiative involving the U.S. Attorney’s Office, the ATF and various local police departments.

United States Attorney Edward Tarver said: “Through project Ceasefire, the United States Attorney’s Office will be relentless in its enforcement of federal firearms laws.  Project Ceasefire has proven to be an effective tool in the Department of Justice’s efforts to rid the streets of dangerous felons who carry guns.  Felons who possess firearms can expect to be returned to prison. ”

Assistant U.S. Attorney Carlton Bourne prosecuted the case on behalf of the United States.  For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.

4 Additional Defendants Have Already Pled Guilty for Their Roles in the
Operation of a Purported Garden City, Georgia Pain Clinic

SAVANNAH, GA - A federal indictment, unsealed yesterday in federal court, has charged 6 defendants with conspiring to traffic oxycodone, hydrocodone, and other drugs through a purported pain clinic known as East Health Center, which operated in Garden City, Georgia from February through May of 2011.

The indictment alleges that during the time that East Health Center was open, members of the conspiracy unlawfully prescribed and caused to be prescribed more than four million milligrams of oxycodone without any legitimate medical purpose.  During this same period, prescriptions were written for numerous “patients” who lived outside the state of Georgia, including over 130 from Kentucky; over 50 from North Carolina; over 30 from South Carolina; and over 80 from Florida.

United States Attorney Edward Tarver  said, “During the last two years, we’ve seen a number of pill-mills relocate their unlawful businesses to the State of Georgia.  These so-called clinics operate under the guise of a stethoscope and a white coat, and they prey upon their so-called ‘patients.’ Any pill mills that seek to do business in the Southern District of Georgia can expect to be investigated and prosecuted like every other drug trafficking organization that pushes poison in our communities.”

Harry S. Sommers, Special Agent in Charge of the Atlanta Field Division of the DEA, remarked, “ The DEA will continue to aggressively investigate those who cause to be dispensed addictive pain medications without legitimate medical purpose under the pretext of a medical doctor’s care.”

The indictment results from a joint investigation by the DEA, IRS - Criminal Investigations, GBI, Chatham Savannah Counter Narcotics Team (CNT), and the United States Marshals Service.  Personnel from the Ware County Sheriff’s office assisted in making arrests.

Any defendant found guilty of the drug conspiracy charged in the indictment faces a maximum penalty of up to 20 years in prison and a fine of $1,000,000.  The money laundering count also charged carries a maximum penalty of 20 years in prison and a fine of $500,000.  The United States is also seeking to forfeit various items of personal property involved in the offenses, including $365,000 as the alleged proceeds of the defendants’ drug operation.  The indictment is only an accusation and is not evidence of guilt.  The defendants are entitled to a fair trial, during which it will be the Government’s burden  to prove guilt beyond a reasonable doubt.

            The 6 defendants indicted are:

            Sean Michael Clark, 34, of Boca Raton, Florida;

            Adelaida M. Lizama, 27, of Boca Raton, Florida;

            Daniel John Wise, 34, of Fort Lauderdale, Florida;

            Dr. Najam Azmat, 55, of Waycross, Georgia;

            Candace Anne Carreras, 25, of Boca Raton, Florida; and,

            Shelly Lynn Morford, 31, of Fort Lauderdale, Florida.

Other targets of the investigation have already pled guilty for their role in the East Health Center pill-mill.  Adelard LeFrancois, III, 43, of Boca Raton, Florida and Francis J. Barbuscia, 36, of Plantation, Florida, entered guilty pleas before U.S. District Court Judge William T. Moore, Jr. on August 3, 2012.  Each pled guilty to conspiring to dispense controlled substances, including oxycodone, without a legitimate medical purpose.   Konstantinos Afthinos, 32, of Florida pled guilty to misprision of felony on November 5, 2012.  On November 7, 2012, Dr. Kenneth Gossett, 51, of Rome Georgia, pleaded guilty to conspiring to dispense controlled substances, including oxycodone, without a legitimate medical purpose.

Assistant United States Attorneys Karl Knoche, Greg Gilluly, and Jeff Buerstatte are prosecuting the case for the Government.  For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.

AUGUSTA, GA: JEFFREY SPONSELLER, 47, of Augusta, Georgia pleaded guilty today before United States District Court Judge J. Randal Hall to submitting over $800,000 in fraudulent claims to Medicare.

Evidence presented at today’s guilty plea hearing showed that SPONSELLER, an optometrist and an owner of Eye Care One, located at 3152 Washington Road in Augusta, Georgia, submitted claims to Medicare for payment for eye examinations of nursing home patients. Instead of billing Medicare for the actual service he was providing at the nursing homes, SPONSELLER claimed that he was conducting the most expensive type of eye examination which typically lasts 45 minutes. An example of this health care fraud presented at today’s guilty plea hearing involved a July 27, 2009 visit by SPONSELLER to a nursing home in Americus, Georgia where SPONSELLER billed Medicare for 177 patients that he claimed to have examined individually for 45 minutes each during that one-day visit. As a result this type of fraudulent billing, Medicare paid SPONSELLER for that type of eye exam more than any other doctor in the United States in 2009.

United States Attorney Edward J. Tarver said, “Health care fraud is a cancer on the financial health of our nation. In many cases, such as with this Defendant, it is committed by professionals who are well educated and highly regarded. Whether that fraud is perpetrated by an optometrist willing to claim that he worked the equivalent of 5½ days during a one-day visit to a nursing home – like this defendant did – or a medical equipment supplier that bills Medicare without authorization, the ultimate injury is to the American taxpayer. The United States Attorney’s Office and its law enforcement partners will actively pursue those who abuse our country’s health care programs for financial gain.”

Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General for the Atlanta region, said, “Any time false claims are submitted for payment, our nation's health insurance programs and beneficiaries suffer. Protecting precious Medicare funds remains a top priority for the Inspector General and our law enforcement partners.”

SPONSELLER faces a maximum penalty of five years imprisonment and a fine of up to $250,000, in addition to paying restitution. The date for SPONSELLER’s sentencing hearing has not yet been scheduled.

FBI Special Agents Paul Kubala and Jason Gustin, U.S. Attorney’s Office Investigator Kimberly Reinken, HHS-OIG Special Agent David Graupner, and IRS Special Agents Roger Garland and Jeffrey Hale participated in the investigation of this case. Assistant United States Attorney David Stewart is prosecuting in this case. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.

BRUNSWICK, GA: – John Kenneth Rosenbaum, 24, from Jacksonville, Florida, was convicted yesterday by a federal jury after a 3-day trial before Chief U.S. District Court Judge Lisa Godbey Wood for lying to agents with the U.S. Fish and Wildlife service when he orchestrated a hoax concerning a Black Mamba snake.

United States Attorney, Edward J. Tarver said, “Lying to federal agents is a crime. This defendant caused an unnecessary panic and wasted the resources of dozens of law enforcement personnel. For his crime, he will now face the cell of a federal prison.”

Luis Santiago, Special Agent in Charge for the Office of Law Enforcement, Southeast Region, United States Fish and Wildlife Service, stated, “Many times our investigations go well beyond violations of wildlife laws, as in this case where concern for public safety was also a key element. Causing such public concerns by making false statements concerning such a dangerous species is absolutely inexcusable.”

The evidence presented during trial revealed that on November 21, 2011, Rosenbaum went to a hospital in South Georgia and reported that he had been bitten by a Black Mamba snake. Black Mamba snakes originate in Africa, are highly aggressive, and haves toxic venom that can kill within minutes. It is a violation of the federal Lacey Act to possess a Black Mamba in Georgia. Rosenbaum told an emergency room physician that he had driven across the Florida border to Exit 3 on Interstate 95 for the purpose of buying a Black Mamba snake. Rosenbaum said the snake escaped and bit him. Because Rosenbaum had puncture wounds and had written “Black Mamba Snake” on his arm, the physician immediately began snake-bite treatment, and then called law enforcement.

Over concerns that a Black Mamba snake was on the loose in a populated area, a coordinated search and investigation by United States Fish and Wildlife Service, Georgia Department of Natural Resources, Kingsland Police Department, Camden County Sheriff’s Department, and Florida Fish and Wildlife Commission was mobilized.

Rosenbaum continued to tell the story of the Black Mamba to federal agents and others for nearly five months. Over 1000 hours of law enforcement time were utilized in the search and investigation. Federal agents later determined that Rosenbaum’s story was a hoax, and that he had actually been bitten by his pet Egyptian Banded Cobra, which he kept in his home. Rosenbaum faces a maximum statutory penalty of 5 years in prison; a fine of $250,000; and, 3 years of supervised release. Rosenbaum remains in custody pending his sentence. A sentencing date will be scheduled following completion of a presentence investigation and report.

Assistant United States Attorneys T. Shane Mayes and Brian T. Rafferty prosecuted the case for the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.

SAVANNAH, GA – Charles Starks, 22, of Savannah, Georgia was sentenced yesterday by Senior United States District Court Judge B. Avant Edenfield to 162 months in prison for possessing a firearm as a convicted felon and for a related drug offense.  Starks was classified as a “career offender” under the federal sentencing guidelines due to his previous convictions for burglary, obstruction, firearms possession and drug trafficking.  Evidence presented at the sentencing hearing revealed that Starks distributed marijuana to an underage female while he possessed a stolen, loaded .38 caliber Smith and Wesson revolver.

The case was investigated and prosecuted under Project Ceasefire, a joint federal, state and local firearms initiative involving the U.S. Attorney’s Office, the Chatham County District Attorney’s Office, the ATF and the Savannah-Chatham Metropolitan Police Department.

United States Attorney Tarver said: “Project Ceasefire is an effective program designed to remove from our streets previously convicted felons who, after their initial release from confinement, continued to engage in criminal activity by using and carrying firearms.  The career path chosen by this very young Defendant is extremely unfortunate.  Because of his multiple felony convictions, he has qualified for designation into an exclusive category known as the “career offender.”  Felons with guns, serve hard time, for a long time.”

Assistant United States Attorney Carlton R. Bourne prosecuted the case on behalf of the United States.  For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.

SAVANNAH , GA: WILLIAM ELLIEN, 57, of Savannah, Georgia, was indicted yesterday by a federal grand jury sitting in Savannah, Georgia for felony drug charges related to the unlawful distribution of prescription drugs, including percocet and hydrocodone.  According to the Indictment and an earlier filed Criminal Complaint, Ellien, a Savannah physician, exchanged prescriptions for very addictive prescription drugs for sex acts with various women from 2009 through 2012. 

United States Attorney Edward J. Tarver said, “Prescription drug abuse has become an epidemic in Georgia and across our nation.   The indictment and other court documents in this case allege that this doctor violated his oath to‘do no harm,’ by trading prescriptions for highly addictive medications for sex.  Swift justice can be the only response to this grave violation of the trust and responsibility bestowed upon the Defendant by the people of Georgia.”

Ellien, who remains in federal custody, is facing up to 20 years in prison and a $1,000,000 fine.  An indictment is only an accusation and is not evidence of guilt.  The Defendant is entitled to a fair trial, during which it will be the Government’s burden to prove the Defendants’ guilt beyond a reasonable doubt.    

This case is being prosecuted by Assistant United States Attorney, E. Greg Gilluly, Jr.  For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.