Eastern District of Virginia

A Chinese national and naturalized U.S. citizen pleaded guilty yesterday to his involvement in a conspiracy to launder at least $30 million in drug proceeds on behalf of foreign drug-trafficking organizations. Another Chinese national was sentenced to seven years in prison today for his role in the same conspiracy.

According to court documents, Xizhi Li, 48, played a leadership role within a years-long conspiracy to use a foreign casino, foreign and domestic front companies, foreign and domestic bank accounts, false passports and other false identification documents to launder money on behalf of transnational drug-trafficking organizations, whose main drug-trafficking activities involved cocaine. The defendant dealt directly with members of drug-trafficking organizations or their representatives to obtain and service “contracts” to move their drug proceeds. Once the defendant and his co-conspirators obtained a “contract” to launder drug proceeds, they would engage in financial transactions that were designed to conceal the illicit source of the original funds, in return for the payment of commissions.

“The defendants laundered millions of dollars on behalf of drug traffickers through the global financial system in a manner that concealed the source and nature of the illicit funds,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Global money-laundering networks enable drug cartels to profit from their deadly trade, and yesterday’s guilty plea and today’s sentence underscore the Justice Department’s commitment to dismantling the financial infrastructure of transnational criminal organizations to take the profit out of crime. This plea and sentence would not have been possible without the tireless efforts of our federal law enforcement partners and the United States Attorney’s Office for the Eastern District of Virginia.”

“This prosecution demonstrates the enormous value of collaborating with agencies across the government and with our international partners to dismantle and hold accountable transnational criminal organizations that pose a significant danger to the public,” said Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia. “The far-reaching conspiracy in this case involved the laundering of millions of dollars of illegal proceeds on behalf of transnational drug-trafficking organizations through the use of a casino, front companies, foreign and domestic bank accounts, false identification documents, and bulk cash smuggling. We greatly appreciate the essential and innumerable contributions from our partner agencies, all of whom worked closely together to thoroughly follow the facts and evidence that led to the unraveling of this multimillion-dollar money-laundering scheme.”

“DEA’s mission is to make our communities safer and healthier, which means bringing to justice the most dangerous individuals and organizations that traffic drugs in the United States and around the world,” said Administrator Anne Milgram of the Drug Enforcement Administration. “Through the collective efforts of the DEA and our law enforcement partners, we relentlessly pursue individuals, like the one here, who allegedly laundered more than $30 million in drug profits.”

“The successful outcome of this complex, multi-year investigation is owed to dogged determination by the dedicated men and women of the Drug Enforcement Administration, working closely with our federal law enforcement partners,” said Special Agent in Charge J. Todd Scott of DEA’s Louisville Division. “We will continue to be relentless in our efforts to stop transnational criminal organizations from operating within our borders, and we will use every tool available in our mission to protect the American people.”

Co-defendant Tao Liu, 46, of Hong Kong, helped to execute the money laundering scheme. At times, Liu accepted bulk drug cash on behalf of Xizhi Li, which he later deposited into bank accounts that Li provided. Additionally, Liu was the target of a months-long undercover investigation during which he attempted to bribe what he believed was a corrupt U.S. Department of State official to obtain U.S. passports for individuals, including Liu himself, who were not otherwise entitled to use or possess such documents. This purportedly corrupt official was actually an undercover DEA agent. Liu agreed to pay $150,000 per passport as part of this scheme.

Li pleaded guilty to conspiracy to launder money. He is scheduled to be sentenced on Oct. 26 and faces a maximum penalty of 20 years in prison as well as a $10-million forfeiture money judgment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Liu pleaded guilty to his role in the conspiracy and a separate bribery charge on April 14 and was sentenced today to seven years in prison.

On April 14, co-defendants Jiayu Chen, 46, of Brooklyn, New York, and Jingyuan Li, 49, of San Gabriel, California, pleaded guilty to their roles in the conspiracy. On July 20, Chen was sentenced to 60 months’ imprisonment and ordered to forfeit $2.8 million dollars.

Additionally, on June 16, Eric Yong Woo, 43, of Alhambra, California, also pleaded guilty to his role in the money-laundering conspiracy. He is scheduled to be sentenced on Sept. 21 and faces a maximum penalty of 20 years in prison.

Finally, Jianxing Chen, 40, of Belize, was charged in the superseding indictment for his alleged involvement in this money-laundering and drug-trafficking conspiracy. He is pending extradition following his arrest in Lima, Peru. Chen was captured with significant assistance from The International Criminal Police Organization (INTERPOL).

The DEA’s Louisville Division and the DEA’s Special Operations Division–Bilateral Investigations Unit are investigating this case, with assistance from the DEA’s Office of Special Intelligence, Document and Media Exploitation Unit and the DEA’s offices in New York, Chicago, Los Angeles, Houston, Omaha, Atlanta, Newark, Portland, Dallas, Mexico City, Merida (Mexico), Guatemala City, Belmopan (Belize), Beijing, Hong Kong, Jakarta (Indonesia), Manila (Philippines), Tokyo, Seoul, Bangkok, Lima (Peru), and Canberra (Australia). The U.S. Department of State’s Diplomatic Security Service (DSS), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Postal Inspection Service, Interpol, and U.S. Customs and Border Protection National Targeting Center (CBP – National Targeting Center) were partners in the investigation of this case.

Assistant U.S. Attorneys David A. Peters and Michael P. Ben’Ary and Trial Attorneys Kerry Blackburn, Mary K. Daly, and Stephen A. Sola of the Justice Department’s Money Laundering and Asset Recovery Section are prosecuting the case.

The Justice Department’s Office of International Affairs provided significant assistance. The Australian Criminal Intelligence Commission, the Australian Federal Police, the Australia Department of Home Affairs, the Mexican Federal Police, the Guatemalan National Civil Police and the New Zealand Police also provided significant assistance.

This prosecution is part of two Organized Crime Drug Enforcement Task Force (OCDETF) investigations. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

ALEXANDRIA, Va. – A Chinese national and naturalized U.S. citizen pleaded guilty yesterday to his involvement in a conspiracy to launder at least $30 million in drug proceeds on behalf of foreign drug trafficking organizations. Another Chinese national was sentenced to 7 years in prison today for his role in the same conspiracy.

According to court documents, Xizhi Li, 48, played a leadership role within a years’ long conspiracy to use a foreign casino, foreign and domestic front companies, foreign and domestic bank accounts, false passports and other false identification documents, and bulk cash smuggling to launder money on behalf of transnational drug trafficking organizations, whose main drug trafficking activities involved cocaine. The defendant dealt directly with members of drug trafficking organizations or their representatives to obtain and service “contracts” to move their drug proceeds. Once the defendant and his co-conspirators obtained a “contract” to launder drug proceeds, they would engage in financial transactions that were designed to conceal the illicit source of the original funds, in return for the payment of commissions.

“This prosecution demonstrates the enormous value of collaborating with agencies across the government and with our international partners to dismantle and hold accountable transnational criminal organizations that pose a significant danger to the public,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “The far-reaching conspiracy in this case involved the laundering of millions of dollars of illegal proceeds on behalf of transnational drug trafficking organizations through the use of a casinos, front companies, foreign and domestic bank accounts, false identification documents, and bulk cash smuggling. We greatly appreciate the essential and innumerable contributions from our partner agencies, all of whom worked closely together to thoroughly follow the facts and evidence that led to the unraveling of this multimillion-dollar money laundering scheme.”

“The defendant laundered millions of dollars on behalf of drug traffickers through the global financial system in a manner that concealed the source and nature of the illicit funds,” said Assistant Attorney General Kenneth A. Polite Jr. “Global money laundering networks enable drug cartels to profit from their deadly trade, and yesterday’s guilty plea and today’s sentence underscores the Justice Department’s commitment to dismantling the financial infrastructure of transnational criminal organizations to take the profit out of crime. This plea and sentence would not have been possible without the tireless efforts of our federal law enforcement partners and the United States Attorney’s Office for the Eastern District of Virginia.”

“DEA’s mission is to make our communities safer and healthier, which means bringing to justice the most dangerous individuals and organizations that traffic drugs in the United States and around the world,” said Anne Milgram, Drug Enforcement Administration Administrator. “Through the collective efforts of the DEA and our law enforcement partners, we relentlessly pursue individuals, like the one here, who admitted to laundering more than $30 million in drug profits.”

Co-defendant, Tao Liu, 46, of Hong Kong, helped to execute the money laundering scheme. At times, Liu accepted bulk drug cash on behalf of Xizhi Li, which he later deposited into bank accounts that Li provided. Additionally, Liu was the target of a months-long undercover investigation during which he attempted to bribe what he believed was a corrupt U.S. Department of State official to obtain U.S. passports for individuals, including Liu himself, who were not otherwise entitled to use or possess such documents. This purportedly corrupt official was actually an undercover DEA agent. Liu agreed to pay $150,000 per passport as part of this scheme.

Li pleaded guilty to conspiracy to launder money. He is scheduled to be sentenced on October 26 and faces a maximum penalty of 20 years in prison as well as a $10 million forfeiture money judgment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Liu pleaded guilty to his role in the conspiracy and a separate bribery charge on April 14 and was sentenced today to 7 years in prison.

On April 14, co-defendants Jiayu Chen, 46, of Brooklyn, New York, and Jingyuan Li, 49, of San Gabriel, California, pleaded guilty to their roles in the conspiracy. On July 20, Chen was sentenced to 60 months’ imprisonment and ordered to forfeit $2.8 million dollars.

Additionally, on June 16, Eric Yong Woo, 43, of Alhambra, California, also pleaded guilty to his role in the money laundering conspiracy. He is scheduled to be sentenced on September 21 and faces a maximum penalty of 20 years in prison.

Finally, Jianxing Chen, 40, of Belize, was charged in the superseding indictment for his alleged involvement in this money laundering and drug trafficking conspiracy. He is pending extradition following his arrest in Lima, Peru. Chen was captured with significant assistance from The International Criminal Police Organization (INTERPOL).

The DEA’s Louisville Division and the DEA’s Special Operations Division – Bilateral Investigations Unit are investigating this case, with assistance from the DEA’s Office of Special Intelligence, Document and Media Exploitation Unit and the DEA’s offices in New York, Chicago, Los Angeles, Houston, Omaha, Atlanta, Newark, Portland Dallas, Mexico City, Merida (Mexico), Guatemala City, Belmopan (Belize), Beijing, Hong Kong, Jakarta (Indonesia), Manila (Philippines), Tokyo, Seoul, Bangkok, Lima (Peru), and Canberra (Australia). The U.S. Department of State’s Diplomatic Security Service (DSS), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Postal Inspection Service, INTERPOL, and U.S. Customs and Border Protection (CBP – National Targeting Center) were partners in the investigation of this case.

Assistant U.S. Attorneys David A. Peters and Michael P. Ben’Ary and Trial Attorneys Kerry Blackburn, Mary K. Daly, and Stephen A. Sola of the Justice Department’s Money Laundering and Asset Recovery Section are prosecuting the case.

The Justice Department’s Office of International Affairs provided significant assistance. The Australian Criminal Intelligence Commission, the Australian Federal Police, the Australia Department of Home Affairs, the Mexican Federal Police, the Guatemalan National Civil Police, and the New Zealand Police also provided significant assistance.

This prosecution is part of two Organized Crime Drug Enforcement Task Force (OCDETF) investigations known as Operation Dark Castle and Operation Taishan Triangle. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-334.

RICHMOND, Va. – The U.S. Attorney’s Office for the Eastern District of Virginia (EDVA) will join community organizers, neighbors, and law enforcement partners to participate in National Night Out events this evening, August 3. During this year’s National Night Out, Acting U.S. Attorney Raj Parekh will attend community events in the Richmond area with Chief of Richmond Police, Gerald M. Smith.

“Keeping our communities safe is a top Justice Department priority, as it is for state, local and Tribal police departments across the country,” said Attorney General Merrick B. Garland. “Law enforcement is most effective when it has the trust and support of the communities it serves. That is why events like National Night Out are so important and effective; they help to bridge the gap between neighbors and their police departments in a positive and informal setting.”

“Participating in community-based events and strengthening the bonds of trust and friendship with the residents we serve are essential to our crime reduction efforts across the Eastern District of Virginia,” said Acting U.S. Attorney Raj Parekh. “We are committed to working closely with our communities to keep our neighborhoods safe, eliminate injustices, and protect civil rights and civil liberties. When we stand united with our neighbors in looking out for each other, we can make meaningful, long-lasting improvements in the safety of our cities and streets.”

National Night Out is a community-building and crime prevention program that promotes partnerships and camaraderie between law enforcement and the communities they serve to make our neighborhoods safer places to live. National Night Out was established in 1984 with funding from the Bureau of Justice Assistance of the U.S. Department of Justice. The program is administered by the National Association of Town Watch, a nationwide non-profit organization.

During National Night Out, community involvement in crime prevention is generated through a variety of local events that help strengthen neighborhood spirit and unity, such as block parties, cookouts, festivals, parades, safety demonstrations, seminars, youth events, visits from emergency personnel, and more. National Night Out sends a message that neighbors are united and working together to keep their communities and each other safe.

This year, National Night Out organizers are expecting over 16,000 communities and millions of people from all 50 states, U.S. territories, and military bases worldwide to take part in community events. The program concludes annually on the first Tuesday of August in most areas of the country. 

EDVA staff members have been encouraged to participate in community events located in or around the Office’s Alexandria, Richmond, Norfolk, and Newport News Divisions. For more information, visit https://natw.org/ or click on each of the preceding links for examples of National Night Out Events taking place across the Eastern District of Virginia.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.

RICHMOND, Va. – A New Zealand man pleaded guilty today to production of child pornography.

According to court documents, between February and March 2018, Troy George Skinner, 28, interacted with a minor child online and used the child to produce numerous videos and image files of child pornography.

“Although no prosecution can undo the irreparable damage the defendant caused, we hope it is some measure of relief to the victim, the victim’s family, and the community that the defendant now faces lengthy and significant consequences for this heinous conduct when he is sentenced by the Court,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We will continue to hold accountable those who exploit and prey on vulnerable members of our community.”

“The FBI will aggressively investigate any matter where persons prey on our children, and work with our partners to hold these predators accountable with the goal of removing them from our community,” said Special Agent in Charge Stanley M. Meador of the Federal Bureau of Investigation’s (FBI) Richmond Field Office. “Mr. Skinner's solicitation of this minor victim is unfortunately not uncommon for sexual predators; what is rather unusual is for a predator to travel this extensively to gain access to their victim. Had it not been for the intervention of an adult, this incident could have been much worse. We encourage anyone who may have fallen victim to a similar situation of sharing images or videos, to report it to law enforcement as soon as possible, so we can help end the trauma.”

According to the Statement of Facts filed with the plea agreement, on June 20, 2018, Skinner departed from Auckland, New Zealand, en route to Virginia. On June 22, 2018, Skinner traveled to the victim’s home in Goochland, the location of which he learned in his online conversations with the minor victim. Upon arriving at the victim’s home in Goochland, the defendant approached the house and attempted to speak to family members inside. Skinner threw a paving stone through the glass window of the kitchen door to the house and attempted to enter. After several verbal warnings, the victim’s mother fired a handgun to prevent Skinner from entering the home, striking him once in the neck. Skinner fled from the house but collapsed in a neighbor’s yard, where he was apprehended by members of the Goochland County Sheriff’s Office.

According to additional court filings submitted by the government, a search at the scene of Skinner’s belongings revealed duct tape, pepper spray, and a folding pocketknife. Officials also seized two mobile phones from Skinner, which investigators later determined contained images of child pornography depicting the minor victim. U.S. authorities also made a mutual legal assistance request to officials with the government of New Zealand. New Zealand investigators executed a search warrant on the defendant’s apartment in New Zealand and conducted a forensic examination of the defendant’s laptop, and later provided to U.S. investigators a thumb drive containing 120 video and 56 image files depicting the minor victim.

Skinner pleaded guilty to production of child pornography and is scheduled to be sentenced on February 11, 2022. He faces a mandatory minimum term of 15 years and a maximum term of 30 years in prison. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after U.S. District Judge M. Hannah Lauck accepted the plea.

Significant and valuable assistance was provided by the Government of New Zealand and the Goochland County Sheriff's Office.

Assistant U.S. Attorneys Brian R. Hood and Katherine Lee Martin prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-cr-19.

NORFOLK, Va. – A Canadian man was sentenced to 40 years in prison today for orchestrating an online sextortion scheme and producing images of child sexual abuse.

“The defendant repeatedly engaged in the sexual exploitation and extortion of numerous young girls using threats and fear to commit devastating crimes,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “As this case demonstrates, we will aggressively pursue perpetrators of this unfathomable form of abuse – no matter how long it takes – to help bring a measure of justice and healing for the victims.”

According to court documents, Marco Viscomi, 36, of Ontario, was first identified by the Virginia Beach Police Department (VBPD) and Homeland Security Investigations (HSI) in 2012. In January 2012, a father of two girls, then ages 13 and 17 years old, reported to the VBPD that his daughters had been sexually extorted by someone they met online. The person online threatened the girls and forced the sisters to engage in sexually explicit conduct while he watched online from Canada. The VBPD and HSI traced the culprit to Ontario and identified Viscomi as the person responsible. Viscomi was a 26-year-old medical student at that time.

“After nearly a decade, this case is finally coming to a close because of the relentless work of law enforcement,” said Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C. “Viscomi manipulated young victims into engaging in sexually explicit conduct, and then, once identified, fought tirelessly to avoid facing charges for his actions. Today, justice was served, and another child predator is behind bars.”

Additional investigation uncovered Viscomi had engaged in similar sextortion conduct with hundreds of other victims, but not all victims were able to be identified. HSI was able to identify and locate over 70 such minors, including several sets of sisters who Viscomi terrorized online. In July 2012, Viscomi was charged in federal court in the Eastern District of Virginia and arrested in Canada. He fought extradition to the United States until December 2019, when the Canadian courts finally ordered him to be extradited to Norfolk to face the charges.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C.; and Paul Neudigate, Chief of Virginia Beach Police, made the announcement after sentencing by Senior U.S. District Judge Rebecca Beach Smith.

Assistant U.S. Attorneys Elizabeth M. Yusi and E. Rebecca Gantt prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the 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 via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:12-cr-134.

NORFOLK, Va. – A Virginia inmate pleaded guilty today to his involvement in a scheme to obtain pandemic-related unemployment benefits by using the personal identifying information of over 30 other Virginia prison inmates.

According to court documents, in 2020, Michael Lee Lewis, Jr., 41, of Chesapeake, was incarcerated at the Augusta Correctional Center. Beginning in May 2020, he worked with Mary Landon Benton, 38, of Portsmouth, and Angelica Cartwright-Powers, 35, of Norfolk to collect the personally identifiable information of other inmates to fraudulently apply for Virginia unemployment benefits during the COVID-19 pandemic. Lewis provided Benton and Cartwright-Powers information for inmates at the Augusta Correctional Center, resulting in approximately twenty-one successful unemployment claims for inmates there. Benton, with the help of Lewis and the others, submitted successful applications for Virginia unemployment benefits for 31 inmates, and Cartwright-Powers submitted successful applications for four inmates.

Lewis and his co-conspirators, along with the prisoners whose information was used for the unemployment applications, shared the proceeds of the crimes, which amounted to over $330,000. Although the conspirators initially obtained $436,834, the Virginia Employment Commission was able to reclaim some of the disbursed funds after discovering the fraud.

Benton and Cartwright-Powers have since pleaded guilty to their respective roles in the conspiracy. Lewis pleaded guilty to one count of mail fraud and is scheduled to be sentenced on December 2. He faces a maximum penalty of 30 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Joseph V. Cuffari, Inspector General for the Department of Homeland Security; Derek Pickle, Special Agent-in-Charge of the Washington, DC Regional Office, U.S. Department of Labor, Office of Inspector General; and Paul Haymes, Chief of Investigations, Virginia Department of Corrections, Special Investigations Unit, made the announcement after U.S. District Judge Raymond A. Jackson accepted the plea.

Assistant U.S. Attorney Rebecca Gantt is prosecuting the case.

This investigation was conducted under the auspices of “Operation Checkmate,” the Virginia Department of Corrections Inmate Unemployment Insurance Fraud Task Force. The task force is led by the U.S. Attorney’s Office for the Eastern District of Virginia, DOL-OIG, DHS-OIG, and the Virginia Department of Corrections. This investigation included assistance from the U.S. Secret Service’s Richmond Field Office, the Portsmouth Police Department, and the Virginia Employment Commission.

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

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:21-cr-33.

A Tennessee man was sentenced today to 45 months in prison followed by three years of supervised release for illegally obtaining classified national defense information and disclosing it to a reporter.

According to court documents, Daniel Everette Hale, 33, of Nashville, began communicating with a reporter beginning in April 2013 while enlisted in the U.S. Air Force and assigned to the National Security Agency (NSA). Hale admitted to meeting with the reporter in person on multiple occasions and communicating with the reporter via phone, text message, email and, at times, an encrypted messaging platform.

In February 2014, while working as a cleared defense contractor at the National Geospatial-Intelligence Agency (NGA), Hale printed six classified documents unrelated to his work at NGA and soon after exchanged a series of messages with the reporter. Each of the six documents printed were later published by the reporter’s news outlet.

According to court records, while employed as a cleared defense contractor for NGA, Hale printed 36 documents from his Top Secret computer, including 23 documents unrelated to his work at NGA. Of the 23 documents unrelated to his work at NGA, Hale provided at least 17 to the reporter and/or the reporter’s online news outlet, which published the documents in whole or in part. Eleven of the published documents were marked as Top Secret or Secret.

According to court records, in August 2014, Hale’s cell phone contact list included contact information for the reporter. He also possessed a thumb drive that contained a page marked “SECRET” from a classified document that Hale had printed in February 2014 and had attempted to delete from the thumb drive. In addition, Hale possessed on his home computer another document that he had stolen from NGA.

Hale pleaded guilty to retention and transmission of national defense information on March 31.

Acting Assistant Attorney General Mark J. Lesko of the Justice Department’s National Security Division made the announcement.

The FBI’s Baltimore Field Office investigated the case.

Assistant U.S. Attorneys Gordon D. Kromberg and Alexander P. Berrang for the Eastern District of Virginia and Senior Trial Attorney Heather M. Schmidt of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.

NORFOLK, Va. – The former president of an escrow and title company was sentenced today to 18 months in prison for misappropriating $715,000 of closing funds in connection with 48 real estate transactions for which she served as the settlement agent.

According to court documents, Tammy Hamrin, formerly known as Tammy A. Cheek, 58, of Virginia Beach, was a licensed title and settlement agent and was the president, secretary, and treasurer of Preferred Escrow and Title, Inc. During 48 real estate transactions between January 2018 and approximately February 2018, Hamrin misappropriated $715,000 of closing funds that had been deposited by various lenders and individual buyers into the company’s escrow account. She did so by making seven unauthorized wire transfers of funds from the escrow account to certain entities at the request of a person with whom Hamrin had an online personal relationship.

During this period, Hamrin partially replenished the funds that she had misappropriated by depositing approximately $199,000 of her own money into the escrow account, resulting in a remaining shortage of approximately $516,000. As a result, all 48 closings were affected. Among others, losses were sustained by sellers, buyers, business entities, financial institutions, various lienholders, municipal clerks of court and treasurer offices, and a title insurance company.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.

Assistant U.S. Attorney Alan M. Salsbury prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:21-cr-2.

ALEXANDRIA, Va. – The U.S. Department of Justice has launched five cross-jurisdictional strike forces to help reduce gun violence by disrupting illegal firearms trafficking in key regions across the country. Leveraging existing resources, the regional strike forces will better ensure sustained and focused coordination across jurisdictions and help stem the supply of illegally trafficked firearms from source cities, through other communities, and into five key market regions: New York, Chicago, Los Angeles, the San Francisco Bay Area/Sacramento Region, and Washington, D.C.

Each strike force region will be led by designated United States Attorneys, who will collaborate with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and with state and local law enforcement partners within their own jurisdiction (where firearms are used in crimes), as well as law enforcement partners in areas where illegally trafficked guns originate. These officials will use the latest data, evidence, and intelligence from crime scenes to identify patterns, leads, and potential suspects in violent gun crimes.

“All too often, guns found at crime scenes come from hundreds or even thousands of miles away. We are redoubling our efforts as ATF works with law enforcement to track the movement of illegal firearms used in violent crimes. These strike forces enable sustained coordination across multiple jurisdictions to help disrupt the worst gun trafficking corridors,” said Attorney General Merrick B. Garland. “The Department of Justice will use all of its tools – enforcement, prevention, intervention, and investment – to help ensure the safety of our communities – the department’s highest priority.”

According to gun trace data, a significant number of firearms recovered in Washington, D.C. originate from outside the city. The new strike force will help ensure sustained and focused coordination between law enforcement and prosecutors in the Washington, D.C., metropolitan area, including in the Eastern District of Virginia, with their counterparts in locations where many of the firearms originate.

Acting U.S. Attorney Raj Parekh said: “Disrupting the flow of illegally trafficked firearms is critical to reducing the painful toll that gun violence inflicts on our communities and loved ones. Through our participation in the cross-jurisdictional strike force, EDVA will bring to justice gun traffickers and others who enable this tragic cycle of violence. We will also amplify our community engagement efforts to continue building the degree of trust that is required for positive and lasting change to occur. Because many of the firearm source locations for the Washington, D.C., metropolitan area overlap with the source locations for firearms recovered in the New York City area, we will work closely with our New York City counterparts to help make our communities safer for everyone.”

The strike forces represent one important, concrete step in implementing the Department’s Comprehensive Violent Crime Reduction Strategy, which was announced on May 26, 2021. The comprehensive strategy supports local communities in preventing, investigating, and prosecuting gun violence and other violent crime—and requires U.S. Attorneys’ offices to work with federal, state, local, and tribal law enforcement, as well as the communities they serve, to address the most significant drivers of violence in their districts. In guidance to federal agents and prosecutors as part of that comprehensive strategy, the Deputy Attorney General made clear that firearms traffickers providing weapons to violent offenders are an enforcement priority across the country.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.

RICHMOND, Va. –Three individuals made their initial appearances in federal court this afternoon on charges of participating in a bribery scheme.

According to the indictment, Susan May Keim, 52, and Russell John Keim, Sr., 59, of Hopewell, allegedly accepted bribes from Rodney Gale Wilson, 65, of Imperial, Missouri, in return for Susan Keim’s award of federal subcontracts to Wilson’s company, C&L Supply.

According to the indictment, Susan Keim worked for Skookum Educational Services, a company that contracted with the federal government to provide maintenance and supply services at Fort Lee.  Rodney Wilson was the owner of C&L Supply, a company formed for the sole purpose of selling supplies for Skookum for use at Fort Lee. From 2013 to 2018, in return for the award of the subcontracts valued at least $912,765.89 and the supply of confidential information, Wilson allegedly provided various things of value, totaling at least $92,039.79, to Susan and her spouse, Russell Keim, including: (1) checks and cash payments to Russell Keim disguised as compensation to Russell Keim for work performed for C&L Supply, when, in fact, Russell Keim never worked for that company; and (2) payments for work done on a property owned by Susan and Russell Keim.

All three individuals are charged with conspiracy and payment, and receipt of bribes. If convicted, each defendant faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

The defendants will be arraigned before U.S. District Judge John A. Gibney, Jr. on August 16.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Kenneth A. Polite Jr., Assistant Attorney General of the Justice Department’s Criminal Division; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; L. Scott Moreland, Special Agent in Charge of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit’s (MPFU) Mid-Atlantic Fraud Field Office; and Chris Dillard, Special Agent in Charge for Department of Defense Office of Inspector General, Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office, made the announcement.

Assistant U.S. Attorney Michael C. Moore of the Eastern District of Virginia and Trial Attorney Rebecca M. Schuman of the Justice Department’s Public Integrity Section are prosecuting the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:21-cr-083.

An indictment is merely an accusation. The defendants are presumed innocent until proven guilty.

RICHMOND, Va. – A former Richmond attorney pleaded guilty today to obstructing an official proceeding in connection with his attempts to thwart a 2019 investigation into his own fraudulent conduct as a bankruptcy trustee.

According to court documents, Bruce H. Matson, 64, misled the U.S. Trustee’s Office in 2019 when he made false statements in response to allegations that he misappropriated funds as a court-appointed trustee in the bankruptcy of LandAmerica Financial Group (LFG). A federal investigation into those allegations uncovered multiple instances of Matson’s embezzlement from the LFG Trust between 2015 and 2018, totaling approximately $800,000 in misappropriated funds.

“Matson abused his position as an attorney, officer of the court, and bankruptcy trustee to enrich himself at the expense of the people whose very interest the court appointed him to protect,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “As part of our unwavering commitment to pursuing equal justice under the law, we will continue to root out the fraudulent conduct of those who violate the public’s trust and use their positions of power to conceal their crimes.”

Additionally, Matson manipulated the budget for LFG’s post-bankruptcy wind-down period so that he could divert residual funds to himself and others after the close of the LFG bankruptcy, when he would no longer be subject to scrutiny by LFG creditors and the Bankruptcy Court. In particular, Matson misrepresented the amount of money needed for the wind-down process and obscured the amount of money actually retained in Trust accounts. In order to access these residual funds, Matson also inserted language into the budget the night before it was filed with the Bankruptcy Court. This language seemingly gave Matson the authority to pay discretionary bonuses using residual funds. Matson knew the last-minute language included in the budget contradicted other court filings, but he instructed other trust professionals not to amend the filings, including the proposed Final Decree ultimately endorsed by the Bankruptcy Court in December 2015. As a result of this conduct, Matson was able to siphon away more than $3.2 million for personal payments to himself and others, depleting the Trust account more than two years before the end of the wind-down period.

The federal investigation also uncovered an unrelated instance of Matson embezzling approximately $23,000 in 2016 from the estate of Forefront Capital, a defunct futures broker for which Matson served as receiver and debtor-designee. In total, between 2015 and 2019, Matson wrongfully obtained more than $4 million in bankruptcy-related assets.

Matson is scheduled to be sentenced on November 22. He faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

“The investigation into Mr. Matson's conduct as a bankruptcy trustee resulted in authorities uncovering a separate, unrelated incident. His plea today, for obstruction, is an admittance of responsibility,” said Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office. “This plea is also a reflection of the investigative team's hard work and partnership between the FBI, the U.S. Postal Inspection Service, and the United States Attorney's Office, Eastern District of Virginia.”

“This guilty plea highlights the joint efforts of the U.S. Postal Inspection Service, our law enforcement partners, and the U.S. Attorney’s office to prosecute those who seek to exploit and embezzle by misleading the government,” said U.S. Postal Inspector in Charge for the Washington Division Daniel Adame. “The mission of the U.S. Postal Inspection Service is to protect consumers by ensuring the nation's mail system is not used in furtherance of criminal activity, which safeguards our customers’ trust in the United States Postal Service.”

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; and Daniel A. Adame, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after U.S. District Judge John A. Gibney, Jr. accepted the plea. The U.S. Trustee Program provided significant assistance in this case.

Assistant U.S. Attorneys Katherine Lee Martin and Kevin S. Elliker are prosecuting the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:21-cr-79.

NORFOLK, Va. – A Portsmouth man was sentenced today to 18 years in prison for illegal possession of a firearm as a convicted felon, aggravated identity theft, and credit union fraud.

“With today’s sentence, the defendant has been held accountable for the serious nature of his crimes, including his recruitment of over 50 co-conspirators to participate in an extensive fraud scheme involving the Dark Web that inflicted significant financial loss on numerous victims,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Thank you to our law enforcement partners for risking their lives to apprehend the defendant following his reckless high-speed chase during which he placed community members in danger. We appreciate the hard work and dedication of all our partner agencies who helped bring the defendant to justice on behalf of the victims in this case.”

According to court documents, between December 2018 and January 2019, Armad Jamall Gatling, aka “Peso Chapo,” 26, a dealer for a drug trafficking organization based in Portsmouth, sold cocaine to a cooperating source four times. In July 2019, Gatling sold an AR-style rifle to the cooperating source, who Gatling knew to be a convicted felon.

On September 11, 2019, after he was federally indicted, Gatling fled in his vehicle from pursuing Chesapeake Police Department law enforcement officers, traveling as fast as 120 mph, running red lights, driving into oncoming traffic on a bridge, and finally abandoning the vehicle and fleeing on foot, at which point he was arrested. Police searched his vehicle and recovered nine credit cards in other people’s names, a credit card swipe reader, a license with Gatling’s photo but listing a different name, and a security baton.

A court-authorized search of Gatling’s social media accounts and electronic devices revealed that, from January 2019 to September 2019, he was part of a check fraud scheme in which he recruited others to open credit union accounts, then deposited counterfeit checks into those accounts and quickly withdrew the funds before the fraud was detected. He also spearheaded a scheme in which he used Personal Identifying Information (PII) illegally obtained from the Dark Web to create cloned credit cards, and then used the credit cards to purchase trailers, lawn equipment, motorcycles, and other property, which he resold. One of Gatling’s devices contained PII for dozens of victims. Gatling recruited more than 50 co-conspirators to participate in his scheme, resulting in at least 50 victims suffering financial losses totaling more than $368,000.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Charlie J. Patterson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; George D. Purefoy, Resident Agent in Charge of the U.S. Secret Service’s Norfolk Resident Office; Gregory Scovel, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office; and Col. K.L. Wright, Chief of Chesapeake Police, made the announcement after sentencing by Senior U.S. District Judge Rebecca Beach Smith.

This case is part of Operation High Tide, a proactive, large-scale narcotics trafficking and firearms investigation that focused on high-impact targets driving crime in some of the hardest hit neighborhoods in Hampton Roads.

Assistant U.S. Attorney William Jackson prosecuted the case.

This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-153.

ALEXANDRIA, Va. – A Virginia-based consulting group and its president and majority owner agreed to a $4.8 million settlement with respect to allegations that they paid kickbacks, announced Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia.

Sage Consulting Group, Inc. (Sage), a federal government contractor located in Vienna, specializes in providing information technology services to the U.S. Department of Defense (DOD). Robert Pleghardt, of Vienna, is the President and 99.5% owner of Sage. Sage and Pleghardt agreed to pay $4.8 million to settle allegations that they paid kickbacks to companies certified by the Small Business Administration (SBA) as 8(a) small businesses, which are owned and operated by socially and economically disadvantaged citizens, in order to obtain subcontracts on 8(a) set-aside contracts. According to the United States’ allegations, Sage and Pleghardt falsely represented to government agencies that the 8(a) certified companies would be performing at least 50% of the work on these contracts when, in fact, Sage performed 100% of the work.

The United States alleged that Wete and Company, Inc. (Wete), formerly an 8(a) certified company, agreed to subcontract work on 8(a) set-aside contracts and task orders for the Department of Defense Education Activity (DODEA) to Sage in exchange for an hourly fee paid by Sage to Wete for every hour of work Wete subcontracted to Sage. The United States also alleged that Pleghardt falsely represented, in a proposal submitted to DODEA, that Wete employees would be working on a task order when he knew that all the work on the task order would, in fact, be performed by Sage employees.

The United States further alleged that Index Systems, Inc. (Index), an 8(a) certified company, agreed to subcontract work on 8(a) set-aside contracts for DODEA and the Defense Human Resources Activity (DHRA) to Sage in exchange for an hourly fee paid by Sage to Index for every hour of work Index subcontracted to Sage. The United States also alleged that Pleghardt falsely represented to DHRA officials that Index employees would be working on a DHRA contract when he knew that all the work on the contract would, in fact, be performed by Sage employees.

The settlement resolves federal civil claims under the False Claims Act and the Anti-Kickback Act. Sage and Pleghardt cooperated with the government’s investigation.

The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia, the Defense Criminal Investigative Service, and the General Services Administration Office of Inspector General.

This matter was investigated by Assistant U.S. Attorney Krista Anderson.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.

The civil claims settled by this agreement are allegations only; there has been no determination of civil liability.

RICHMOND, Va. – A Texas woman was sentenced today to 50 months in prison for defrauding the Virginia Medicaid program out of nearly $3 million.

“For over six years, the defendant stole over $2.8 million from the Virginia Medicaid program, using those funds to go on a spending spree at casinos, luxury retail stores, and foreign travel destinations,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “This prosecution underscores our steadfast commitment to protecting essential government resources that are intended to help those in need of this critical assistance throughout our communities.”

According to court documents, Katrina Lynch, 39, of Cypress, Texas, owned and operated A Tender Heart, LLC, a company based in Midlothian. A Tender Heart was enrolled with the Virginia Medicaid Program as a Service Facilitator, a Medicaid provider that ensures Medicaid recipients receive needed and required services.

“We must hold fraudulent healthcare providers accountable, not only because they are stealing from our healthcare system but they are also stealing from Virginia taxpayers in the process,” said Mark R. Herring, Attorney General of Virginia. “I want to thank my hardworking Medicaid Fraud Control Unit for their work on this case, as well as our state and federal partners for their collaboration.”

Between 2011 and 2018, Lynch routinely submitted bills to Medicaid for services that her company never provided. For example, Lynch submitted bills to Medicaid for services supposedly provided to Medicaid recipients that had died, recipients that were hospitalized, recipients that transferred to other service facilitators, and recipients that had not been visited by any company employees for months. Due to these fraudulent submissions, Medicaid paid Lynch at least $2,816,633 to which she was not entitled.

“The Medicaid system is a lifeline for so many who depend on those funds to receive the necessary medical care they would otherwise not be able to afford. The FBI will not take an idle approach to the abuse of government programs,” said Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office. “We will work with our investigative partners to hold criminals accountable; and demonstrate to the American people we are committed to upholding the law and seeking justice for those who need it. If you have information to share about potential Medicaid fraud, please contact the FBI at tips.fbi.gov or by calling our local field office (804-261-1044).”

Lynch received warnings about her billing practices during two audits performed at the direction of the Virginia Department of Medical Assistant Services (DMAS). As a result of these audits, A Tender Heart was required to repay over $335,000 to Virginia Medicaid. Lynch, however, continued her fraudulent scheme after these audits.

Lynch used the fraudulently obtained Medicaid funds to engage in extensive personal expenditures, including overseas travel, restaurants, gambling, cosmetic surgery, jewelry, and vehicles. For example, Lynch spent over $47,000 of Medicaid funds at casinos, including the Bellagio in Las Vegas, Nevada, and Harrah’s in New Orleans, Louisiana. In addition, she spent over $100,000 on clothing and jewelry at luxury stores such as Neiman Marcus, Saks Fifth Avenue, Tiffany & Co., and Louis Vuitton. Lynch further spent over $250,000 on travel expenses, including a trip to London in 2018, a trip to Atlantis Paradise in the Bahamas in 2017, a Royal Caribbean Cruise also in 2017, as well as trips to Hollywood, California, and Miami, Florida. Finally, she spent more than $25,000 on beauty services such as nail and hair salons, and she spent approximately $29,000 on entertainment expenses, including concert tickets, movie theaters, and golf.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge David J. Novak.

Assistant U.S. Attorney Katherine Lee Martin prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-cr-174.

NORFOLK, Va. – On Friday, a federal jury convicted a Kennewick, Washington man on charges of conspiracy to distribute and possession with intent to distribute cocaine, and distribution of cocaine.

According to court records and evidence presented at trial, Juan Gabriel Rodriguez-Preciado, 43, facilitated the trafficking of kilogram quantities of cocaine between a Mexican cartel and a regional drug trafficking organization (DTO) run by Adian Barth, 35, of Chesterfield. During July and August 2019, Rodriguez-Preciado stayed at a Richmond residence owned by Barth to assist him in a cocaine drug trafficking conspiracy. From that residence, Rodriguez-Preciado distributed approximately 10 kilograms of cocaine every other week to members of Barth’s DTO over a two-month period. In return, Rodriguez-Preciado collected approximately $30,000 per kilogram, which he funneled back to Mexico.

“The jury’s verdict holds the defendant accountable for dangerously facilitating the distribution of significant quantities of cocaine between an international drug cartel and a regional drug trafficking organization,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “EDVA is grateful to everyone who worked tirelessly on this case to protect the public and pursue justice against those who placed profits over the well-being of our communities.”

“I’m really proud that my team was able to help shutdown this significant, international drug trafficking operation that threatened the health and safety of Virginians,” said Mark R. Herring, Attorney General of Virginia. “We appreciate our continuing, productive partnership with the U.S. Attorney’s Office and all the partner agencies who work each and every day to keep Virginians safe.”

Rodriguez-Preciado faces a mandatory minimum sentence of five years and a maximum of 60 years in prison when sentenced on November 29. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

On May 11, Barth was sentenced to 225 months in prison for charges of conspiracy to distribute, possession with intent to distribute, and distribution of cocaine.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; Charlie J. Patterson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; and Col. K.L. Wright, Chief of Chesapeake Police, made the announcement after Senior U.S. District Judge Robert G. Doumar accepted the verdict.

Assistant U.S. Attorney Megan Montoya and Special Assistant U.S. Attorney Kristin Bird are prosecuting the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-164.

ALEXANDRIA, Va. – On Saturday, a federal jury convicted a former Internal Revenue Service (IRS) employee of access device fraud.

“As the evidence at trial showed, the defendant engaged in a scheme involving fraudulent purchases and payments, including by using a fictitious charity website, for his own benefit,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We thank the trial team and our partner agencies for ensuring that the defendant has been held accountable for inexcusably committing this crime while he was serving as a federal employee.”

According to court records and evidence presented at trial, a former Information Technology Specialist for the IRS, Kwashie Senam Zilevu, 37, of Woodbridge, operated a fraud scheme in which he used a line of credit in a victim’s name to make hundreds of purchases totaling more than $58,000, for his own benefit. In connection with this scheme, identity information was obtained from the Dark Web. Ultimately, a credit card in the victim’s name was mailed to the defendant’s home in Woodbridge.

Zilevu’s purchases included international plane tickets, expensive hotel rooms, interior decorating services, and construction materials used to remodel his home, among other goods and services. Evidence presented at trial also demonstrated that Zilevu made fraudulent payments to himself using financial instruments belonging to other people, including routing charitable donations to a fictitious African charity website he created, controlled, and used to further his criminal activity, and by receiving payments from a PayPal account associated with the credit card opened in the victim’s name.

Zilevu faces a maximum penalty of 15 years in prison when sentenced on November 10. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; J. Russell George, Treasury Inspector General for Tax Administration; and Daniel A. Adame, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after U.S. District Judge Rossie D. Alston, Jr. accepted the verdict.

Assistant U.S. Attorneys Ronald P. Fiorillo II and Jamar K. Walker are prosecuting the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-356.

ALEXANDRIA, Va. – A Senior Executive Service (SES) employee of the National Aeronautics and Space Administration (NASA) was sentenced today to 18 months in prison for submitting fraudulent applications for over $350,000 in COVID-19 economic relief loans and benefits.

“While serving in a high-ranking position at NASA, this defendant used the identities of others to carry out a brazen scheme in which he exploited taxpayer-funded programs during the global pandemic for his own personal benefit,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “This case serves as another example of EDVA’s commitment to pursuing justice against those who attempt to take advantage of essential programs that are intended for deserving community members.”

According to court documents, Andrew Tezna, 36, of Leesburg, fraudulently submitted three loan applications to two financial institutions totaling $272,284, under the Paycheck Protection Program (PPP), a federal initiative designed to help businesses pay their employees and meet their basic expenses during the COVID-19 pandemic. Tezna also submitted two Economic Injury Disaster Loan Program applications to the Small Business Administration totaling $69,500, and he applied for COVID-related unemployment benefits, totaling $15,950, from Virginia, ostensibly for his mother-in-law, who was retired and did not qualify for the benefits. In support of the fraudulent PPP loan applications, Tezna submitted fabricated IRS tax returns and fraudulently claimed payroll expenses that did not exist.

Tezna successfully obtained over $285,000 from the PPP loans and unemployment benefits. The bulk of the money came from PPP loans applied for in his and his mother-in-law’s names for businesses that did not exist. He then spent the funds, among other things, to pay off a personal loan for a residential pool, a personal loan for a minivan, personally incurred credit card debt, a down payment on a new car, and a dog-breeder. In addition, Tezna also admitted to filing a false Financial Disclosure Report with NASA.

“Tezna made fraudulent representations to obtain funds from COVID-19 relief programs designed to aid businesses and individuals that were struggling as a result of the pandemic.  In doing so, he stole funds from American taxpayers that he ultimately used to pay down personal debt and purchase luxury items,” said Special Agent in Charge Mark J. Zielinski, NASA Office of Inspector General, Eastern Field Office. “Today’s sentencing should serve as a deterrent to all those trying to game the system for personal gratification.”

“COVID-19 relief programs are not meant to be used for paying off personal indulgences. Tezna, despite having an executive position, stole funds from the government meant to aid struggling businesses during the pandemic. Today, the penalties of his actions were realized,” said Darrell J. Waldon, Acting Special Agent in Charge of the Internal Revenue Service-Criminal Investigation (IRS-CI) Washington D.C. Field Office.

In addition to the 18 months of imprisonment, Tezna was sentenced to 3 years of supervised release and $285,449.11 of restitution and forfeiture.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Darrell J. Waldon, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-CI; and Mark J. Zielinski, Special Agent in Charge, NASA Office of Inspector General, Eastern Field Office, made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton.

Assistant U.S. Attorneys Kimberly M. Shartar and Jamar K. Walker prosecuted the case.

On May 17, 2021, Attorney General Merrick Garland established the COVID-19 Fraud Enforcement Task Force, led by the Deputy Attorney General, to bring together the full resources of the federal government to bolster fraud enforcement efforts. If you think you are a victim of a scam or attempted fraud involving COVID-19, contact the National Center for Disaster Fraud Hotline at 866-720-5721 or via email at disaster@leo.gov. Members of the public in the Eastern District of Virginia are encouraged to call 804-819-5416, or email USAVAE.COVID19@USDOJ.GOV to reach their local Coronavirus Fraud Coordinator.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-77.

ALEXANDRIA, Va. – A Beltsville, Maryland man and long-time fugitive pleaded guilty today to aiding and abetting a drug-related murder nearly a decade ago.

According to court documents, Saul Pacheco Mejia, 55, arranged to sell cocaine to individuals in Reston on December 12, 2011. On that date, Mejia and two associates arrived at an apartment in Reston in anticipation of the cocaine transaction. Instead of purchasing the cocaine, the intended customer attempted to steal the cocaine and flee. Mejia’s associates chased, shot, and killed the man. Mejia did not have a firearm, but knew the two other individuals did have firearms. Mejia and the others fled to Honduras shortly after the crime. In late 2019, Mejia was located in the United States and arrested in Texas.

Mejia pleaded guilty to aiding and abetting the use of a firearm in furtherance of a drug trafficking conspiracy, causing death. Mejia pleaded guilty to aiding and abetting the use of a firearm in connection with a drug conspiracy resulting in death. Mejia is scheduled to be sentenced on November 10. Under the plea agreement entered today, the parties have agreed that the Court will not sentence the defendant to more than 25 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and David M. Rohrer, Fairfax County Interim Chief of Police and Deputy County Executive for Public Safety, made the announcement after U.S. District Judge Rossie D. Alston, Jr. accepted the plea.

Assistant U.S. Attorney Michael P. Ben’Ary is prosecuting the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-2.

NORFOLK, Va. – A Southampton County man was sentenced today to 40 years in prison for producing and possessing images of child sexual abuse.

James William Thomas, III, 36, was found guilty by a jury on February 13, 2020, of seven counts of production of child pornography and three counts of possession of child pornography. According to court records, Thomas’s crimes were discovered in 2014 after he was caught burglarizing a coin shop in Franklin. Southampton County investigators obtained a search warrant for Thomas’s residence and seized evidence related to over 25 unsolved burglaries in Virginia and North Carolina. Part of this seizure included computers and other digital storage devices.

The evidence presented at trial showed that a review of these electronic devices revealed the presence of child pornography. Moreover, investigators found detailed folders on the devices with names of child victims and saved chat sessions. Over multiple years, Thomas, then in his late 20s, posed as a 17-year-old teen and befriended female victims on social media who were generally between the ages of 12-16. Thomas then groomed these victims and convinced them to produce naked images of themselves to send to him. In some instances, he convinced them to masturbate over a webcam, which Thomas recorded and saved. Thomas saved these chat sessions and the images in the folders on the electronic devices.

The evidence adduced at trial further demonstrated that Thomas chatted online with dozens of minor victims. To keep track of them, he employed a “cheat sheet” at the top of the saved chat sessions for each victim, which contained information  including their name, age, phone number, and other facts, such as how easily they provided him with naked images. In one instance, he convinced a 14-year-old girl to meet him for sex on three separate occasions. Each time, Thomas had the victim pose naked for photographs and then recorded their sexual encounters.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.

Assistant U.S. Attorney Joseph L. Kosky prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the 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 via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-58.

NORFOLK, Va. – A Chesapeake man was convicted today on methamphetamine and money laundering charges after a three-day bench trial.

According to court records and evidence presented at trial, Xavier Howell, 35, led the Virginia side of a multi-state, multi-kilogram methamphetamine conspiracy. He and his co-conspirators imported over 10 kilograms of high-purity methamphetamine, sourced from a California-based Grape Street Crips gang member, through the mail with the assistance of a corrupt U.S. Postal Service supervisor. The group also smuggled fentanyl into Hampton Roads on a commercial air flight.

“With the assistance of a corrupt federal employee and others, the defendant flooded South Hampton Roads with methamphetamine as part of a cross-country conspiracy supplied by a California-based gang,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Through the hard work and dedication of the trial team, this defendant and others have been brought to justice for threatening the safety of our communities.”

Howell faces a mandatory minimum sentence of 10 years and a maximum sentence of life when he is sentenced on November 12. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; Daniel A. Adame, U.S Postal Inspector in Charge for the Washington Division; and Col. K.L. Wright, Chief of Chesapeake Police, made the announcement after U.S. District Judge John A. Gibney, Jr. announced the verdict.

Assistant U.S. Attorneys Andrew Bosse and Amanda Turner are prosecuting the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-11.

NEWPORT NEWS, Va. – The ringleader behind an extensive drug trafficking ring was sentenced today to 33 years in prison for distributing large amounts of fentanyl, heroin, and cocaine in Newport News and North Carolina.

“This defendant served in a significant leadership role as the regional distributor of heroin, fentanyl, and cocaine for the Sinaloa Cartel, one of the most prolific and violent cartels in the world,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “EDVA will continue working with our law enforcement partners to combat these transnational criminal organizations in order to protect the health and safety of our communities.”

According to court documents, Ramiro Ramirez-Barreto, 44, from the Mexican State of Morelos, operated a continuing criminal enterprise with ties to Virginia, North Carolina, and California. Ramirez-Barreto was linked to the Sinaloa Cartel in Mexico, as were his drug sources, and his operation supplied cocaine, heroin, and fentanyl to numerous drug trafficking organizations in Newport News, Virginia, and in Henderson and Greensboro, North Carolina. According to one of Ramirez-Barreto’s many North Carolina customers, Ramirez-Barreto supplied him with 60 kilograms of heroin from early 2018 to mid-2019. Another one of Ramirez-Barreto’s customers was an inmate in federal prison operating a drug trafficking organization in Henderson, North Carolina, using a bootleg mobile phone.

In addition to his sentence, Ramirez-Barreto was ordered to pay a forfeiture money judgment of $4,200,000 and forfeit his house in Lawrenceville.

Barreto was arrested in 2019 as a result of Operation Cookout.

Background on Operation Cookout

In August 2019, over 120 law enforcement officers from 30 law enforcement agencies in Virginia, North Carolina, and Texas executed a major operation, known as Operation Cookout, which resulted in 35 defendants being arrested for their respective roles in the conspiracy, along with the seizure of 24 firearms, 30 kilograms of fentanyl, 30 kilograms of heroin, 5 kilograms of cocaine, and over $700,000 in cash.

To date, 45 total defendants have been charged in Operation Cookout. All 45 defendants have admitted their criminal conduct and pleaded guilty. Thus far, 41 defendants have been sentenced, with the majority being sentenced to prisons terms ranging from two to ten years, and five defendants sentenced between 15 to 25 years in prison.

These prosecutions are part of an Organized Crime Drug Enforcement Task Force’s (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington D.C.; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s Washington Division; Darrell J. Waldon, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); Colonel Gary T. Settle, Superintendent of Virginia State Police; Steve R. Drew, Chief of Newport News Police; Mark Talbot, Chief of Hampton Police; Col. K.L. Wright, Chief of Chesapeake Police; and Hampton Commonwealth’s Attorney Anton A. Bell, made the announcement after sentencing by U.S. District Judge David J. Novak.

Assistant U.S. Attorneys Kevin Hudson and Peter G. Osyf and Special Assistant U.S. Attorney Amy E. Cross are prosecuting the case.

The following law enforcement agencies provided significant assistance during the investigation and arrest operation: U.S. Marshals Service, Newport News Sheriff’s Office, Chesapeake Sheriff’s Office, York-Poquoson Sheriff’s Office, Tennessee Highway Patrol, Amarillo Police, and Brunswick County Sheriff’s Office. Approximately 30 law enforcement agencies assisted in the arrest operation in Virginia, North Carolina, and Texas.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:19-cr-47.

NEWPORT NEWS, Va. – A Hampton man was sentenced on Friday to 30 years in prison for his role in a gang-related racketeering conspiracy, murder, and attempted murder.

According to court documents and evidence presented at trial, Ryan Taybron, 24, along with members of the 36th Street Bang Squad gang, were involved in multiple violent crimes in Hampton and Newport News between 2015 and 2017. On June 5, 2015, Taybron and four of his fellow gang members gathered at his Hampton home and discussed killing a rival gang member who was suspected of murdering a 36th Street Bang Squad member two days prior. Taybron provided a handgun to one of the gang members when the gang member left to find the rival. Once at the location, other 36th Street members and associates joined the group and followed a Hampton City school bus in two vehicles, waiting for their target to get off at a stop. When the target exited the bus, the co-defendants and associated gang members chased him into an apartment complex. With Taybron’s encouragement, the gang members carried loaded firearms and planned to kill the target if he was found, which he was not.

Throughout the conspiracy, Taybron actively used social media to taunt rival gangs and make threats of violence towards anyone who would disrespect the 36th Street Bang Squad. On September 1, 2015, Taybron provided a pistol-grip shotgun to a fellow gang member and had two gang members shoot a residence in Newport News because the female resident had disrespected the gang. The house was struck by multiple gun shots. After the shooting, the gang members returned the firearm to Taybron. On January 2, 2017, alongside a fellow gang member, Taybron verbally provoked and engaged in a shoot-out with rival gang members who were standing outside a convenience store in downtown Newport News.

On December 10, 2019, after a seven-week jury trial, Taybron was convicted of racketeering conspiracy, attempted murder in aid of racketeering activity, discharge of a firearm in furtherance of a crime of violence, conspiracy to distribute and possess with intent to distribute controlled substances, and possession of a firearm in furtherance of a drug trafficking crime.

Co-defendant Martin L. Hunt, 24, of Newport News, was sentenced to multiple life sentences for his role in the conspiracy on May 6. Co-defendant Deshaun Richardson, 25, of Newport News, was sentenced to 17 years for his role in the conspiracy on June 5. Co-defendant Eric Nixon, 25, of Hampton, was sentenced to 30 years in prison for his role in the conspiracy on June 28. Co-defendant Xavier Greene, 26, of Newport News, was sentenced to four life sentences for his role in the conspiracy on July 2.

Two additional co-defendants were convicted by a federal jury in the same trial for their roles in the racketeering conspiracy. Those co-defendants currently are scheduled for sentencing through August 2.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Charlie J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division; Steve R. Drew, Chief of Newport News Police; Kenneth Mark Talbot, Chief of Hampton Police; and Anton A. Bell, Commonwealth Attorney for the City of Hampton, made the announcement after sentencing by Chief U.S. District Judge Mark S. Davis.

Assistant U.S. Attorney Brian Samuels, former Assistant U.S. Attorney Howard J. Zlotnick, and Special Assistant U.S. Attorney Amy E. Cross from the Eastern District of Virginia, and Trial Attorney Chad McHenry from the Justice Department’s Organized Crime and Gang Section, prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-52.

NEWPORT NEWS, Va. – A federal jury convicted a Hampton man Friday of aiding and assisting in the preparation of false tax returns, theft of government funds, and failing to file federal income tax returns.

According to court records and evidence presented at trial, from at least 2013 through 2019, Karl Burden-El Bey prepared false tax returns for clients. On his clients’ returns, Burden-El Bey claimed false dependents, residential energy credits, gifts to charity, deductions, and child and dependent care expenses in order to inflate refunds obtained from the Internal Revenue Service (IRS). Burden-El Bey also stole $5,000 by directing a portion of his client’s refunds into his personal bank account.  As to his own taxes, Burden-El Bey did not file individual tax returns for 2013 through 2017 with the IRS, despite being legally obligated to do so.

“The evidence at trial demonstrated that the defendant’s criminal conduct in this case spanned several years and included assisting in the preparation of false tax returns, stealing government funds, and failing to file personal federal income tax returns even though he held a trusted position as a tax preparer,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Our Office expresses its appreciation to the trial team, and we are grateful for the jury’s verdict, which holds the defendant accountable for betraying the public’s trust and unlawfully enriching himself through this multi-year fraud scheme.”

Burden-El Bey faces a statutory maximum sentence of ten years in prison for theft of government funds, three years in prison for each count of aiding and assisting in the preparation of a false tax return, and one year in prison for each count of failing to file a tax return when sentenced on December 7. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; General Stuart M. Goldberg, Acting Deputy Assistant Attorney of the Department of Justice’s Tax Division; and Darrell J. Waldon, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after U.S. District Judge David J. Novak accepted the verdict.

Assistant U.S. Attorneys Lisa McKeel and Brian Samuels and Trial Attorneys Grace Albinson and Francesca Bartolomey of the Tax Division are prosecuting the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:20-cr-17.

ALEXANDRIA, Va. – Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia (EDVA), announced today the launch of “UnMasked,” a community-based educational outreach and prevention program in Virginia dedicated to raising awareness about the prevalence of online sexual exploitation involving children and young adults.

“Online predators target some of the most vulnerable members of our society and can cause a devastating impact on our communities and loved ones,” said Acting U.S. Attorney Raj Parekh. “The first step to fighting back is awareness—educating our youth and parents with information on how to prevent these crimes from happening. UnMasked will help achieve these goals by establishing a community-based program that is designed to raise awareness and combat the often-hidden scourge of cyber abuse.”

UnMasked is a multi-disciplinary partnership of local, state, federal, and non-profit stakeholders committed to raising awareness of threats and resources through education. The initiative provides a platform to educate middle school, high school, and college students, along with parents, teachers, and the broader community, about the potential dangers of the internet. UnMasked presentations will use real-life case examples of online sexual exploitation, as illustrated by law enforcement agents, prosecutors, and survivors of these crimes.

The program name, “UnMasked,” alludes to the often hidden and clandestine nature of online sexual exploitation. Not only are internet predators able to use online identities as a mask to lure in their victims, but those victims are often also “masked” as a result of the fear and stigma that can accompany cyber exploitation. This educational initiative seeks to address both sides of these issues to “unmask” and expose these invisible dangers. The program will also provide a safe environment and opportunity for students and adults to disclose if they have been victims of online exploitation.

The UnMasked initiative will involve educational presentations at schools, colleges, and universities throughout the Eastern District of Virginia. The core curriculum is provided by the National Center for Missing and Exploited Children’s (NCMEC) NetSmartz program. Participants and others in the audience will hear personal stories by real survivors, along with presentations from experts in the investigative, forensic, and mental health fields. These events, which are set to begin during the 2021–2022 school year, will include interactive components, as well as live and video testimonials from survivors cautioning students about the dangers of online communications. UnMasked will offer lessons learned, tips, and best practices on how to avoid being subjected to exploitation, as well as what to do if they or someone they know becomes a victim.

According to NCMEC, online exploitation exploded in 2020 during the COVID-19 pandemic as social isolation and online activity increased. NCMEC’s “CyberTipline” received more than 21.4 million reports of child sexual exploitation from electronic service providers in 2020, as well as over 303,000 reports of online sexual exploitation from the public. This represents a 27% annual increase in reporting from electronic service providers, as well as a more than doubling in reports from the public. According to NCMEC, online exploitation encompasses a broad range of offenses, including “online enticement of children for sexual acts, child sexual molestation, child sexual abuse material, child sex tourism, child sex trafficking, unsolicited obscene materials sent to a child, misleading domain names, and misleading words or digital images on the internet.” Cyber exploitation often begins with perpetrators contacting potential victims through social media applications, video games, and websites, typically using false online profiles, and such conduct can involve both online sexual exploitation and in-person sexual abuse.

EDVA’s partners in this community-based initiative will include the Washington, D.C., Richmond, and Norfolk Field Offices of the Federal Bureau of Investigation (FBI) and Homeland Security Investigations (HSI); the U.S. Department of Defense’s Naval Criminal Investigative Service (NCIS) Washington, D.C., and Norfolk Field Offices; and NCMEC, among other law enforcement, educational, and community organizations.

“In those unfortunate instances when these horrific crimes occur, EDVA will prosecute the perpetrators to the fullest extent of the law, seek justice for all victims, and send a strong message to deter others from engaging in this reprehensible conduct,” said Acting U.S. Attorney Parekh.

To report an incident involving online sexual exploitation, call 1-800-843-5678 or submit a report at report.cybertip.org. The CyberTipline is operated by NCMEC in partnership with the FBI and other law enforcement agencies. To request an UnMasked event at your school or organization, please contact EDVA’s Community Outreach Coordinator at USAVAE-UnMasked@usdoj.gov.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.

NEWPORT NEWS, Va. – A Newport News man was sentenced yesterday to four life sentences in prison for his role in a gang-related racketeering conspiracy, murder, and attempted murder.

According to court documents, Xavier Greene, 26, along with members of the 36th Street Bang Squad gang, were involved in multiple violent crimes in Hampton and Newport News between March and August 2015. On March 8, 2015, Greene and two other gang members shot and killed Dwayne Parker, 18, in Newport News. On April 6, 2015, Greene and three other members of the 36th Street Bang Squad drew firearms and began shooting at people outside a residence in Newport News. Two teenagers were killed during this incident.

On August 1, 2015, Greene, who was armed with a firearm, and two other people ran to a convenience store in Newport News to help gang members who were being jumped by a rival gang. When Greene did not fire at the rival gang, another gang member grabbed the gun and fired eight rounds at the store. A customer was grazed by bullets striking the storefront. Less than a week later, Greene and three other individuals stole more than 30 firearms from a federally licensed firearms dealer outside Richmond. Greene distributed some of the firearms to members of the gang immediately upon returning to the Tidewater area.

On December 10, 2019, after a seven-week jury trial, Greene was convicted on eight counts of crimes in aid of racketeering, including racketeering conspiracy, three murders, using a firearm in each murder, and an attempted murder.

Co-defendant Martin L. Hunt, 24, of Newport News, was sentenced to multiple life sentences for his role in the conspiracy on May 6. Co-defendant Deshaun Richardson, 25, of Newport News, was sentenced to 17 years for his role in the conspiracy on June 5. Co-defendant Eric Nixon, 25, of Hampton, was sentenced to 30 years in prison for his role in the conspiracy on June 28.

Three additional co-defendants were convicted by a federal jury in the same trial for their roles in the racketeering conspiracy. Those co-defendants currently are scheduled for sentencing on various dates through August 2.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Charlie J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division; Steve R. Drew, Chief of Newport News Police; Kenneth Ferguson, Interim Chief of Hampton Police; and Anton A. Bell, Commonwealth Attorney for the City of Hampton, made the announcement after sentencing by Chief U.S. District Judge Mark S. Davis.

Assistant U.S. Attorneys Brian Samuels and Howard J. Zlotnick and Special Assistant U.S. Attorney Amy E. Cross from the Eastern District of Virginia, and Trial Attorney Chad McHenry from the Justice Department’s Organized Crime and Gang Section, prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-52.

NORFOLK, Va. – A Portsmouth man was sentenced today to two years in prison for defrauding the Virginia Medicaid program by submitting over $188,000 in false claims for a residential nursing facility.

“For three years, the defendant used his position as a nursing home operator to fraudulently obtain over $188,000 from the Virginia Medicaid program,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Health care fraud takes funding and critical services away from those who truly need it. We will continue to hold accountable those who exploit these essential health care programs at the expense of vulnerable members of our communities.”

According to court documents, Lopez Scott, 47, operated Turning Points Residential Care, a business authorized to provide residential support services and skilled nursing services to recipients of Medicaid. Between October 2016 and October 2019, Scott submitted numerous false and fraudulent claims to Virginia Medicaid, known as the Virginia Medical Assistance Program (VMAP), which misrepresented that 5,847.75 hours of skilled nursing services had been provided to a Medicaid recipient. As a result, Scott received approximately $188,297.39 in health care payments to which he was not entitled.

“When Lopez Scott launched his fraud scheme, he threatened the integrity of the Medicaid program and illegally pocketed taxpayer funds meant to pay for the legitimate care of needy patients,” said Special Agent in Charge Maureen R. Dixon of the U.S. Department of Health and Human Services (HHS) Office of the Inspector General. “Along with our law enforcement partners, we will continue to hold such fraudsters accountable for their unprincipled actions.”

According to court documents, in order to conceal and cover up the fact that no skilled nursing services had been provided to the Medicaid recipient, Scott created fraudulent entries of nursing notes in the electronic office records of Turning Points, including the forged signature of a nurse, which falsely indicated that such services had been provided. Scott also asked this nurse to falsely state to investigators that she had continued to work for the company even after her employment had ceased.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General for HHS, made the announcement after sentencing by U.S. District Judge Robert G. Doumar.

Assistant U.S. Attorney Alan Salsbury prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-104.

ALEXANDRIA, Va. – Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia (EDVA), announced today the formation of a Civil Rights Team in the Office’s Criminal Division, which will be responsible for enforcing the Nation’s federal criminal civil rights laws in EDVA, including additional resources to investigate and prosecute hate crimes, bias-related incidents, and alleged law enforcement misconduct, and to enhance outreach and awareness among impacted communities. The development of the Civil Rights Team in EDVA’s Criminal Division builds upon the prior establishment of the Civil Rights Enforcement Unit in EDVA’s Civil Division, which has engaged in trailblazing efforts to protect the civil rights of military servicemembers and individuals with disabilities, among others.

“Every individual has the right to enjoy their lives free from violence or discrimination based on race, color, national origin, religion, gender, gender identity, sexual orientation, age, disability, or any other protected basis,” said Acting U.S. Attorney Parekh. “Far too often, victims of hate crimes and discrimination suffer in silence. Through the creation and expansion of the Civil Rights Teams in both our Criminal and Civil Divisions, we aim to bring awareness, improve reporting of hate crimes and discrimination, increase enforcement of civil rights protections, and ensure the prosecution of those who infringe on the civil rights of others.”

These initiatives implement President Biden’s and Attorney General Garland’s directives to confront violence, hatred, and discrimination through modern, comprehensive methods that address the complexity of these issues. In a May 2021 memorandum, Attorney General Garland directed U.S. Attorneys’ Offices nationwide to bolster the Department’s effectiveness in this area, stating that these actions “will enhance our current efforts to combat unlawful acts of hate by improving incident reporting, increasing law enforcement training and coordination at all levels of government, prioritizing community outreach, and making better use of civil enforcement mechanisms.”

The civil rights enforcement efforts in EDVA’s Criminal and Civil Divisions are designed to meet these goals through close coordination with our federal, state, and local partners, and through sustained collaboration with impacted communities in the Eastern District of Virginia.

EDVA’s Criminal Civil Rights Team will focus on violations of federal civil rights laws, including hate crimes and bias-related incidents, alleged law enforcement misconduct, and other federal civil rights offenses. Assistant U.S. Attorney (AUSA) Nicholas U. Murphy II will continue to serve as the district-wide Civil Rights and Hate Crimes Coordinator for EDVA’s Criminal Division. Acting U.S. Attorney Parekh also announced today that he is appointing the following AUSAs to serve as additional Civil Rights Coordinators in all four of EDVA’s geographic divisions: Jamar K. Walker (Alexandria); Stephen E. Anthony (Richmond), E. Rebecca Gantt (Norfolk), and D. Mack Coleman (Newport News). These Civil Rights Coordinators will serve as internal subject matter experts and provide legal advice and training to other AUSAs and EDVA personnel on best practices for investigating and prosecuting federal hate crimes and other civil rights violations, in coordination with the Justice Department’s Civil Rights Division. In addition, the Civil Rights Coordinators will engage with federal, state, and local partners to expand EDVA’s existing outreach programs by improving awareness and proactively engaging with communities to increase hate crimes reporting and strengthen law enforcement’s collective response on these critical issues.

The creation of the Criminal Civil Rights Team follows last year’s announcement of the establishment of the Civil Rights Enforcement Unit in EDVA’s Civil Division, in connection with the 30th anniversary of the Americans with Disabilities Act (ADA). EDVA’s Civil Rights Enforcement Unit has engaged in groundbreaking work to enforce the ADA and ensure equal access to public accommodations, such as health care providers, and state and local government services, such as polling locations, in addition to protecting the rights of military servicemembers and veterans under the Servicemembers Civil Relief Act and the Uniformed Services Employment and Reemployment Rights Act. The Civil Rights Enforcement Unit has also interacted extensively with the vulnerable communities that these laws seek to protect, providing essential education so that impacted individuals can understand and exercise the rights that the law affords.

Although the work of the Civil Rights Enforcement Unit has focused primarily on the enforcement of federal laws protecting the civil rights of veterans and individuals with disabilities, Acting U.S. Attorney Parekh announced today that the Unit’s work would expand to include the enforcement of federal civil rights laws for all protected individuals in connection with housing discrimination and harassment, actions that unduly burden religious expression, and law enforcement and correctional entities that engage in a pattern or practice of unlawful conduct.

The Civil Rights Enforcement Unit in EDVA’s Civil Division includes AUSA Steve Gordon, who serves as the Civil Rights Enforcement Coordinator, and AUSAs Lauren F. Oberheim, Deirdre G. Brou, and Clare P. Wuerker. AUSA Wuerker will focus her civil rights work on pattern or practice allegations in the law enforcement and correctional context.

“These enhanced efforts within EDVA’s Criminal and Civil Divisions will strengthen our Office’s unwavering commitment to ensuring that the civil rights of all who call the Eastern District of Virginia home—especially those in vulnerable communities—are vigorously protected,” said Acting U.S. Attorney Parekh.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.

ALEXANDRIA, Va. – Armed Forces Services Corporation d/b/a Magellan Federal (“AFSC”), located in Alexandria, agreed to pay $4,342,651 to resolve allegations that three former AFSC executives accepted kickbacks in exchange for awarding subcontracts on federal government contracts, announced Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia.

The United States alleged that from 2010 to 2015, a former AFSC executive directed a subcontractor to mark up the cost of services that the subcontractor provided to AFSC primarily in support of various Wounded Warrior programs. The United Sates further alleged that the former AFSC executive directed the subcontractor to divide the proceeds of the scheme between the subcontractor, the former AFSC executive, and two other former AFSC executives in exchange for awarding the subcontracts.

AFSC’s current ownership submitted a written contractor disclosure to the U.S. Small Business Administration describing potential kickbacks to the former executives, and cooperated in full in the ensuing investigation. The settlement resolves federal civil claims under the Anti-Kickback Act and the False Claims Act.

The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia; the Defense Criminal Investigative Service, U.S. Army Criminal Investigation Command, Major Procurement Fraud Unit; and the Naval Criminal Investigative Service.

The matter was investigated by Assistant U.S. Attorneys William Hochul and Kristin S. Starr.

The civil claims settled by the settlement agreement are allegations only; there has been no determination of civil liability.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.

ALEXANDRIA, Va. – A Fredericksburg man pleaded guilty today to the unlawful sale of endangered species, including elephant and whale ivory.

According to court documents, Gary L. Cooper, 60, operated online storefronts to sell elephant and whale ivory, all in violation of the Endangered Species Act. From at least June 2015 through early 2020, Cooper used online platforms, such as Craigslist and eBay, to list for sale individual carvings made in whole, or in part, from ivory. These items ranged in size, including two raw elephant tusks that measured at least 28 inches long. In addition to several raw and carved tusks, the advertisements offered numerous elephant ivory carvings and both raw and scrimshawed sperm whale teeth. Cooper told his clients, including an undercover agent, that he was selling off an estate belonging to an elderly couple in poor health, when in reality he was regularly buying ivory online and flipping the pieces for profit. 

Over about a sixteen-month period beginning in September 2018, Cooper did business with United States Fish and Wildlife Service (USFWS) undercover agents by selling or offering for sale no less than 50 pieces of elephant ivory, with a total market value between $40,000 and $95,000. During their correspondence, Cooper and the undercover agents discussed the illegality of buying and selling ivory across state lines. On November 17, 2018, Cooper offered to sell to an undercover USFWS Special Agent multiple ivory pieces for a total cost of $8,125. On November 26, 2018, Cooper sold two pieces of carved elephant ivory to the undercover agent and mailed the items from Virginia to New York. Upon forensic investigation, the items were confirmed to be genuine elephant ivory.

Cooper is scheduled to be sentenced on August 31. As part of the plea, Cooper will forfeit approximately 136 pieces of raw and carved ivory. He faces a maximum penalty of 1 year in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Ryan Noel, Special Agent-in-Charge, United States Fish and Wildlife Service, Office of Law Enforcement, made the announcement after U.S. Magistrate Judge John F. Anderson accepted the plea.

This investigation was conducted by the United States Fish and Wildlife Service, Office of Law Enforcement, with assistance from the Virginia Department of Wildlife Resources.

Assistant U.S. Attorney Gordon Kromberg and Special Assistant U.S. Attorneys Alejandra Arias and Sara Hallmark are prosecuting the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-mj-212.

NEWPORT NEWS, Va. – A Hampton man was sentenced today to 30 years in prison for his role in a gang-related racketeering conspiracy that engaged in multiple murders, attempted murders, and drug trafficking.

According to court documents, Eric Nixon, 25, along with members of the 36th Street Bang Squad gang, were involved in multiple violent crimes in Hampton and Newport News between 2015 and 2017. On January 2, 2017, Nixon and another gang member engaged in a shoot-out with rival gang members who were standing outside a convenience store in downtown Newport News. On February 26, 2017, Nixon shot a rival gang member in the head during a drive-by shooting in Newport News, because the rival had disrespected the gang on social media. The rival gang member survived the shooting after undergoing brain surgery.

On December 10, 2019, after a seven-week jury trial, Nixon was convicted on six counts of crimes in aid of racketeering, including racketeering conspiracy, two attempted murders, using a firearm in each crime, and having another person unlawfully purchase a firearm for him.

Co-defendant Martin L. Hunt, 24, of Newport News, was sentenced to multiple life sentences for his role in the conspiracy on May 6. In addition to Hunt and Nixon, five co-defendants were convicted by a federal jury in the same trial for their roles in the racketeering conspiracy. Those co-defendants currently are scheduled for sentencing on various dates through August 2.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Charlie J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division; Steve R. Drew, Chief of Newport News Police; Kenneth Ferguson, Interim Chief of Hampton Police; and Anton A. Bell, Commonwealth Attorney for the City of Hampton, made the announcement after sentencing by Chief U.S. District Judge Mark S. Davis.

Assistant U.S. Attorneys Howard Zlotnick and Brian Samuels and Special Assistant U.S. Attorney Amy Cross from the Eastern District of Virginia, and Trial Attorney Chad McHenry from the Justice Department’s Organized Crime and Gang Section, prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-52.

ALEXANDRIA, Va. – A Bluemont man was sentenced today to 19 years in prison for the production and distribution of child pornography.

According to court documents, Kevin Hewlett, 36, was convicted by a federal jury on October 8, 2020, of producing and distributing child pornography. According to court documents and evidence presented at trial, Hewlett was a farrier, a craftsman who trims and shoes horses’ hooves. He was hired to be the farrier to a minor girl’s horses. Hewlett began communicating with the minor regularly through text messages and social media applications. Then in August 2018, Hewlett recorded himself engaging in sexually explicit conduct with the minor in his bedroom. A few months later, in January 2019, Hewlett sent the minor the recording.

Acting U.S. Attorney Raj Parekh of the Eastern District of Virginia; Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; and Assistant Director in Charge Steven M. D’Antuono of the FBI Washington Field Office made the announcement.

This case was investigated by the Loudoun County Sheriff’s Office and the FBI’s Washington Field Office’s Child Exploitation and Human Trafficking Task force, which is composed of FBI agents along with local, state, and federal partners.

Former Assistant U.S. Attorney Nathaniel Smith III and Trial Attorney Gwendelynn Bills of the Criminal Division’s Child Exploitation and Obscenity Section prosecuted the case.

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

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-64.

ALEXANDRIA, Va. – Level 3 Communications, LLC (Level 3), a multinational telecommunications and Internet service provider company with offices throughout the world, including in McLean, agreed to pay $12,772,843 to settle allegations involving: kickbacks paid to former Level 3 officials in return for favorable treatment to subcontractors in connection with government contracts; improperly obtaining competitive bid information; and misstating compliance with woman-owned small business subcontracting requirements.

“Kickbacks paid in connection with government contracts defraud the American taxpayer and undermine the federal procurement process,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “EDVA is firmly committed to utilizing all available civil remedies to combat such alleged conduct and protect the public fisc.”

Level 3 entered a contract issued by the General Services Administration under which the U.S. Department of Defense Office of Inspector General ordered supplies and services, known as the “WITS 3” contract. Level 3 subcontracted work under the WITS 3 contract to MSO Tech, Inc. (MSO Tech) and P.V.S. Inc. (PVS), two Florida-based companies owned by William S. Wilson.

The United States alleged that in 2012, Wilson paid kickbacks to Level 3 senior managers Ronald Capallia and another individual to induce them to steer Level 3 subcontract work to MSO Tech and PVS. In return for these alleged kickbacks, MSO Tech and PVS were allegedly given favorable treatment and subcontracts. The United States also alleged that Capallia knowingly obtained protected competitor bid information in connection with the WITS 3 contract to gain an advantage in bidding on task orders on the contract.

Level 3 also entered into a contract with the U.S. Department of Homeland Security (DHS), known as the “Terrawatt” contract. The United States alleged that in 2011, Level 3 informed DHS that PVS qualified as a woman-owned small business in order to satisfy contractual obligations to award a certain portion of work under the Terrawatt contract to a woman-owned small business, despite Capallia and another individual knowing that PVS was owned and controlled by Wilson, and that the work awarded to PVS was in fact performed by MSO Tech.

The settlement resolves federal civil claims under the False Claims Act, the Anti-Kickback Act, and the Procurement Integrity Act. Level 3 cooperated during the investigation.

The settlement arises in connection with a lawsuit filed by a former Level 3 employee under the whistleblower provision of the False Claims Act. A whistleblower suit, or qui tam action under the False Claims Act, is commenced by an individual, known as a “relator,” filing a complaint under seal in the U.S. District Court, and providing a copy of the complaint and other evidence to the U.S. Attorney’s Office. The United States then has an opportunity to investigate the claims. The False Claims Act provides whistleblowers with a share of the government’s recovery.

The resolution obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia, the Defense Criminal Investigative Service, and the Department of Homeland Security’s Office of Inspector General.

This matter was investigated by Assistant U.S. Attorneys Krista Anderson and Gerard Mene.

The civil claims settled by this agreement are allegations only; there has been no determination of civil liability.

Related court documents and information from the civil lawsuit can be accessed on PACER by searching for Case No. 1:13-cv-1453. Court documents regarding related criminal proceedings can be found at Case Nos. 1:17-cr-223 and 1:17-cr-222.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.

NORFOLK, Va. – A federal jury convicted a Norfolk man yesterday on one count of illegally possessing firearms as a felon, four counts of witness tampering and obstruction of justice, and one count of unlawful possession of a controlled substance.

According to court records and evidence presented at trial, in October and November 2017, Adonis Marquis Perry, 31—a five-time convicted felon who had sustained two state convictions and one federal conviction for being a felon in possession of firearms and ammunition—took pictures of himself holding a Glock, Model 17, 9mm semi-automatic handgun, loaded with an extended magazine, and a Taurus, Model 66, .357 magnum revolver.

According to the evidence presented at trial, on December 18, 2017, Perry was arrested at a traffic stop in Norfolk after attempting to elude law enforcement by running through stop signs and making rapid turns, finally stopping in a residential parking lot. When law enforcement caught up to the car, they ordered the two occupants out of the vehicle. After receiving permission to search the vehicle, officers found the Taurus revolver and the Glock handgun—the latter loaded with the same magazine that was in the defendant’s pictures.

According to the evidence presented at trial, Perry spent the next seven months after his arrest making recorded calls from the jail to engage in witness tampering and obstruction of justice, specifically involving a series of efforts to interfere with the potential testimony of the second person who was in the car during Perry’s arrest encounter.

Perry faces a maximum penalty of 92 years in prison when sentenced on November 17. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Charlie J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after Senior U.S. District Judge Rebecca Beach Smith accepted the verdict.

Assistant U.S. Attorneys William B. Jackson and Joseph E. DePadilla are prosecuting the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-113.

NORFOLK, Va. – A Portsmouth woman pleaded guilty today to her involvement in a fraudulent scheme to obtain over $300,000 in pandemic-related unemployment benefits by using the personal identifying information of over 30 Virginia prison inmates.

“This scheme resulted in the deliberate theft of unemployment funds that were intended to serve as a lifeline for members of our communities who faced financial hardship during the pandemic,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “As Attorney General Garland recently emphasized, we will continue to work with our law enforcement partners to use all available tools to protect these essential taxpayer-funded resources and hold accountable those who seek to illegally profit from the pandemic.”

According to court documents, Mary Landon Benton, 38, worked with inmates at three Virginia correctional institutions to collect the personally identifiable information of other inmates to fraudulently apply for Virginia unemployment benefits during the COVID-19 pandemic. Benton submitted successful applications for Virginia unemployment benefits for 31 inmates across three Virginia correctional facilities. Benton also attempted to file approximately ten to twenty other unemployment claims that were not approved because someone else had already filed a claim for that inmate. Each application that Benton submitted contained numerous false statements that made the application successful, such as the inmates’ contact information and last employer, and that they were ready and willing to work.

According to the Statement of Facts entered with her guilty plea, Benton took a portion of the successful claims and provided a portion of the proceeds to the inmate facilitators as well.

“Today’s guilty plea affirms the U.S. Department of Labor Office of Inspector General’s commitment to working with our federal and state agency partners to investigate fraud and identity theft that adversely impacts the integrity of the unemployment insurance program. We are grateful to the U.S. Attorney’s Office, the U.S. Department of Homeland Security Office of Inspector General, and the Virginia Employment Commission for their continued partnership,” said Derek Pickle, Special Agent-in-Charge, Washington, D.C. Region, U.S. Department of Labor Office of Inspector General.

"Defrauding the U.S. unemployment insurance and FEMA’s Lost Wage Assistance program, especially during the COVID-19 pandemic, is unconscionable,” said Joseph V. Cuffari, Inspector General for the Department of Homeland Security. “This investigation and resulting guilty plea speaks to the strength of our law enforcement partnerships with the Department of Labor – Office of Inspector General, U.S. Attorney’s Office, and the Virginia Employment Commission which ensure these limited public funds go to the intended beneficiaries."

Benton was indicted for her role in the conspiracy on April 8, 2021, along with three other defendants. The criminal cases against Benton’s three co-defendants remain pending, and each individual is presumed innocent until proven guilty.

Benton is scheduled to be sentenced on October 25. She faces a maximum penalty of 30 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Joseph V. Cuffari, Inspector General for the Department of Homeland Security; Derek Pickle, Special Agent-in-Charge of the Washington, D.C. Regional Office, U.S. Department of Labor Office of Inspector General; and Paul Haymes, Chief of Investigations, Virginia Department of Corrections, Special Investigations Unit, made the announcement after U.S. District Judge Raymond A. Jackson accepted the plea.

Assistant U.S. Attorney Rebecca Gantt is prosecuting the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:21-cr-33.

ALEXANDRIA, Va. – A federal jury convicted two men today for participating in a bribery and kickback conspiracy involving a contract for the U.S. Department of Defense’s Office of Inspector General (DoD OIG).

According to court records and evidence presented at trial, beginning in 2010 and continuing through 2015, William S. Wilson, 56, of Florida, was the owner of a small construction company based in Lake Butler, Florida that paid numerous kickbacks and bribes to his co-conspirators. Among other things, Wilson paid tens of thousands of dollars in bribes to Matthew K. LumHo, 46, of Fairfax Station, then employed with the DoD OIG’s Information Services Directorate. In return, LumHo took official acts that benefitted Wilson’s companies, including steering work to Wilson’s company by placing fraudulent service orders through a government contract that LumHo controlled.

The evidence presented at trial further proved that, over the same time period from 2010 through 2015, Wilson also paid numerous kickbacks to Ronald Capallia and another employee for a telecommunications company that was a prime contractor to the government. Wilson paid these kickbacks to Capallia and the other individual to cause them to steer work and provide favorable treatment to Wilson’s companies as subcontractors to the telecommunications company.

One of the key subcontracts steered to Wilson’s company related to a prime contract between the telecommunications firm and the DoD OIG, in which the telecommunications firm was supposed to supply various information technology-related services to the government. Wilson’s company was awarded this subcontract despite its lack of any relevant experience or expertise, and despite having no employees based in or near northern Virginia, where all the work was to be performed.

Wilson frequently disguised the bribes and kickbacks to Capallia, LumHo, and another individual through fake invoices for services that were never provided, or by masking the payments as payroll to relatives of Capallia and LumHo for jobs that did not in fact exist.

As the scheme progressed, the co-conspirators caused the government to submit numerous false and fraudulent service orders through the prime contract. The false service orders typically described the items being provided as specialized IT-related support services, when in fact the co-conspirators were simply buying standard, commercially available items, dramatically marking up the price, and billing the government as though it had been provided with the specialized IT-related services. The co-conspirators also used fraudulent service orders to conceal bribes in the form of high-end camera equipment and stereo equipment sent from Wilson to LumHo, thereby causing the government to pay for the very bribes that Wilson was sending to LumHo.

The evidence adduced at trial further demonstrated that the co-conspirators repeatedly sought to interfere with the criminal investigation by creating false documentation, making false statements to law enforcement officials, lying on a financial disclosure form, committing perjury during sworn civil deposition testimony, and tampering or attempting to tamper with a witness. In addition, Wilson threatened to murder Capallia and his family members by slitting their throats if Capallia ever testified on behalf of the government.

Co-conspirator Ronald A. Capallia, Jr., 40, pleaded guilty on January 25, 2018 to his role in the conspiracy and will be sentenced on September 14, 2021.

Wilson and LumHo each face a maximum penalty of 20 years in prison when sentenced on October 15. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Timothy R. Thibault, Acting Special Agent in Charge of the FBI Washington Field Office Criminal Division; and Kelly P. Mayo, Deputy Inspector General for Investigations at the Department of Defense’s Office of Inspector General, made the announcement after Senior U.S. District Judge Liam O’Grady accepted the verdict.

Assistant U.S. Attorneys Matthew Burke and Russell L. Carlberg are prosecuting the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-222.

RICHMOND, Va. – A Richmond woman pleaded guilty yesterday to mail fraud for abusing her authority as a case worker at the Richmond Department of Social Services to divert income and food-related benefits to herself.

According to court documents, De’Nisha Juanita Wilson, 47, was a case worker for the Richmond Department of Social Services, where she assisted with and oversaw needy individuals’ receipt of financial benefits and had access to state and city systems containing beneficiaries’ personal information. In May 2019, one of Wilson’s clients, a young woman who was receiving benefits on behalf of five children, tragically died in a car accident. Following the woman’s death, Wilson accessed the deceased woman’s personal identifying information, caused the issuance of new prepaid benefits cards, and directed those cards to herself. Wilson then used the prepaid benefits cards issued under the deceased woman’s name for her own purposes. In total, Wilson diverted more than $13,000, spending approximately $8,000 on food, entertainment, and other personal expenses. The scheme was halted in January 2020.

Wilson is scheduled to be sentenced on October 18. She faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; and James Osuna, Inspector General, City of Richmond Office of the Inspector General, made the announcement after U.S. District Judge John A. Gibney, Jr. accepted the plea.

Assistant U.S. Attorney Kevin Elliker is prosecuting the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:21-cr-69.

NEWPORT NEWS, Va. – A New York man pleaded guilty yesterday to the murders of two men in Newport News in June and July 2014.

According to court documents, Mark Anthony Skeete, a.k.a. Mark Brown, 33, was a member of the Nine Trey Gangsters, an offshoot of the California-based “Bloods” street gang. In June 2014, Skeete came to Virginia to assist in the prostitution of adult women in the Richmond area. On June 28, 2014, Skeete and others traveled to Newport News to assist in the prostitution of a female from New York. When a client was unable to pay, Skeete shot and killed him to maintain his position as part of the Nine Trey enterprise.

After the June 2014 murder, Skeete and others fled to North Carolina. Skeete and others then returned to Newport News and killed another man on July 16, 2014 during a drug transaction. Skeete also robbed the victim of money, drugs, and a cell phone. Shortly thereafter, Skeete returned to Richmond. On September 17, 2014, Skeete, a previously convicted felon, possessed a firearm in Richmond that was later forensically linked to the Newport News murders. Cartridge casings recovered from the June and July 2014 murder scenes revealed that the same Ruger .45 caliber firearm recovered on September 17, 2014 in Richmond was the weapon used in both of those murders.

Skeete is scheduled to be sentenced on December 1. He faces a maximum sentence of up to two life terms in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. District Judge David J. Novak accepted the plea.

This investigation was conducted by the FBI’s Peninsula Safe Streets Task Force, a partnership that includes the FBI, Virginia State Police, Hampton Police Division, James City County Police Department, and Newport News Police Department. This task force investigates the most violent criminal enterprises operating on the Virginia Peninsula. Tips regarding gang activity and other violent crimes in the region can be reported to the FBI at 1-800-CALL-FBI or https://tips.fbi.gov/.

Assistant U.S. Attorneys Howard J. Zlotnick, Lisa McKeel, and Brian Samuels are prosecuting the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:19-cr-62.

ALEXANDRIA, Va. – An Arlington businessman was sentenced today to 21 months in prison with three years of supervised release for making false statements to multiple federal agencies in order to fraudulently obtain multimillion-dollar government contracts, COVID-19 emergency relief loans, and undeserved military service benefits.

“In the early stages of the global pandemic, the defendant engaged in three egregious fraudulent schemes that he brazenly concocted to enrich himself,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “He falsely represented to the federal government that he could provide $38 million in life-saving N95 masks, and simultaneously, he fraudulently obtained over $1 million in pandemic assistance intended for deserving families and businesses. The defendant also continued an offensive seven-year scheme to obtain unearned veterans benefits by falsely claiming to have served as a Marine. This case underscores our commitment to holding accountable those who exploit essential government programs at the expense of veterans, front-line medical personnel, and vulnerable members of our communities.”

According to court documents, Robert S. Stewart, Jr., 35, was the owner and president of Federal Government Experts (FGE) LLC, an Arlington-based company that purported to provide various services to the U.S. government. In this capacity, between April 1, 2020 and May 14, 2020, Stewart made false statements to the Federal Emergency Management Agency (FEMA) and the Department of Veterans Affairs (VA) in order to obtain lucrative contracts to provide COVID-19 personal protective equipment (PPE). In addition, Stewart fraudulently obtained loans under the federal Paycheck Protection Program and the Economic Injury Disaster Loan Program. He also defrauded the VA by falsely claiming to be entitled to veteran’s benefits for serving in the U.S. Marine Corps when, in fact, he never served in the Marines.

As part of his PPE scheme, Stewart falsely stated to procurement officials from FEMA and the VA that he was in possession of large quantities of PPE, including N95 masks. Based on Stewart’s false statements, the VA and FEMA awarded FGE contracts valued at $35,000,000 and $3,510,000, respectively. The VA intended to use the PPE purchased from FGE to protect employees and patients at various Veterans Health Administration facilities, which serve the medical needs of over nine million veterans each year. FGE failed to supply any PPE to the VA and FEMA. The U.S. government suffered no financial loss because the contract called for payment upon delivery and inspection of the goods.

“These were crimes against the American people. Stewart fraudulently pursued contracts that were needed to supply VA hospital patients and staff with critical personal protective equipment during the COVID-19 pandemic, and stole taxpayer dollars intended to help local businesses stay afloat during the pandemic. In addition, he lied about his service in the military and received veterans benefits for which he was not entitled,” said VA Inspector General Michael J. Missal. “This sentence should send a clear message that the VA Office of Inspector General will work diligently with its law enforcement partners to ensure those who would defraud the nation’s veterans and the public will be caught and prosecuted.”

“We continue to collaborate with our law enforcement partners to pursue and dismantle schemes aimed at exploiting critical COVID-19 resources, and we are grateful for today’s sentencing decision, which sends a strong message to help deter potential fraudsters,” said Joseph V. Cuffari, Inspector General for the Department of Homeland Security (DHS).

“Today’s sentencing shows that we will not allow criminals to get away with exploiting government relief efforts that were designed to assist millions of Americans during the COVID-19 pandemic. Stewart fraudulently obtained government-backed loans, and his nefarious and unethical actions were for his own personal gain,” said Robert E. Bornstein, Acting Special Agent in Charge of FBI’s Washington Field Office Criminal Division. “The FBI and our partners are committed to protecting the American people and the integrity of government assistance programs and will work to identify, arrest, and prosecute those who choose criminal activity and greed over principle and the law.”

Stewart also applied for various loans on behalf of FGE under the federal Paycheck Protection Program and the Economic Injury Disaster Loan Program. These programs were designed to provide emergency financial assistance to the millions of people suffering the economic effects of the COVID-19 pandemic. The loan applications submitted by Stewart falsely overstated the number of FGE employees and the amount of FGE’s payroll, two factors that were important in determining loan eligibility and the proper amount of the loan. In addition, Stewart used some of the loan proceeds for personal expenditures rather than to pay employees or for other appropriate business expenses. As a result of these fraudulent loan applications, Stewart obtained approximately $1,066,000 in government-backed loans during the pandemic.

In a separate fraudulent scheme, Stewart, an Air Force veteran, submitted an application for benefits to the VA. The application was fraudulent in that Stewart falsely claimed that he also served in the U.S. Marine Corps. Stewart created fraudulent documents that stated he attained the rank of Corporal in the Marine Corps and was honorably discharged after receiving several awards and commendations, including the Rifle Expert Badge, Pistol Expert Badge, Meritorious Mast, National Defense Service Medal, Sea Service Deployment Ribbon, Southwest Asia Service Medal, Certificate of Appreciation, and the Kuwaiti Liberation Medal. Stewart, in fact, never served in the Marines. Based on his fraudulent application, he received excess benefits in the amount of $73,722.45 between September 2013 and October 2020.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Robert E. Bornstein, Acting Special Agent in Charge of FBI Washington Field Office Criminal Division; Joseph V. Cuffari, Inspector General for the Department of Homeland Security (DHS); and Michael J. Missal, Inspector General for the U.S. Department of Veterans Affairs, made the announcement after sentencing by U.S. District Judge Rossie D. Alston, Jr.

Assistant U.S. Attorney William Fitzpatrick prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-5.

ALEXANDRIA, Va. – A Fredericksburg man pleaded guilty today in connection with a conspiracy to illegally straw purchase 62 firearms from federal firearms licensees (FFLs) in Virginia.

“The straw purchasing of firearms poses a significant threat to our communities by placing guns in the hands of unlicensed and potentially dangerous individuals,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “As a convicted felon and fugitive, the defendant ran a firearms trafficking operation, using co-conspirators to conduct 62 fraudulent gun purchases throughout Virginia. As Attorney General Garland recently emphasized, the Department of Justice is determined to take concrete steps to reduce the tragic toll of gun violence in our communities. Alongside our partners at the ATF, EDVA will continue to investigate, prosecute, and dismantle straw purchasing rings that could potentially feed into this senseless violence.”

According to court documents, Jesus Funez Fuentes, 37, was convicted in 2011 of a felony firearms-related offense in New York. Fuentes was also wanted by law enforcement in Virginia for his failure to appear for court proceedings in a separate felony narcotics case in 2017. While still a fugitive, Fuentes used two co-conspirators to straw purchase 62 firearms on his behalf from FFLs in Virginia. As a convicted felon, Fuentes was prohibited by law from purchasing the firearms himself or possessing any firearms and ammunition.

Shelby Lee Apperson, 37, of Fredericksburg, pleaded guilty on April 29 to making a false statement in connection with a firearms purchase. As part of her guilty plea, Apperson admitted to straw purchasing 32 firearms for Fuentes between August 2018 and January 2020.

Maria Antonia Lovos, 31, of Fredericksburg, also pleaded guilty today to her role in the conspiracy to make false statements to FFLs in the course of purchasing firearms. As part of her guilty plea, Lovos admitted to purchasing 30 firearms for Fuentes in less than one month in 2019. In each transaction, Apperson and Lovos falsely represented that they were the actual transferees of the firearms. Apperson and Lovos then provided the firearms to Fuentes, who sold all but one of the guns for a profit.

Multiple firearms straw purchased in connection with this conspiracy have been recovered by police officers in Baltimore and in Virginia. An automated ballistics evaluation conducted by the ATF’s National Integrated Ballistic Information Network (NIBIN) revealed that one of the firearms straw purchased by Lovos and subsequently sold by Fuentes had been used by others in Baltimore, including in three separate attempted homicides in May 2020.

As part of today’s plea, Fuentes pleaded guilty to one count of conspiracy to make false statements to FFLs in the course of purchasing firearms, and one count of possessing ammunition as a prohibited person. Fuentes is scheduled to be sentenced on October 20, and he faces a maximum penalty of 15 years in prison. Apperson and Lovos will each face up to five years in prison when they are sentenced on September 22 and October 27, respectively. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Charlie J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after U.S. District Judge Anthony J. Trenga accepted the plea.

Assistant U.S. Attorney John C. Blanchard is prosecuting the case.

This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 1:21-cr-136, 1:21-cr-102, and 1:21-cr-86.

RICHMOND, Va. – A Glen Allen woman pleaded guilty today to mail fraud for her role in a conspiracy to fraudulently obtain pandemic-related unemployment benefits for 22 prison inmates, which she shared with the inmate beneficiaries.

“These critical unemployment funds were intended for deserving members of our communities to help alleviate their economic hardship during the pandemic,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “This prosecution and the defendant’s guilty plea send a clear message that EDVA will bring to justice those who unlawfully exploit taxpayer-funded assistance for personal gain.”

According to court documents, Virginia Smith, 37, conspired with an inmate at Baskerville Correctional Center to collect the personally identifiable information of inmates to fraudulently apply for Virginia unemployment benefits from around June 2020 to January 2021, during the COVID-19 pandemic. Smith, with the assistance of the inmate co-conspirator, submitted successful applications for Virginia unemployment benefits for at least 22 inmates at Baskerville Correctional Center, resulting in the dispersal of at least $223,984.72 in fraudulent benefits.

“Smith and her co-conspirators used the identities of prisoners housed at the Baskerville Correctional Center to file fraudulent unemployment claims and unlawfully collect more than $223,000 in resulting benefit payments,” said Derek Pickle, Special Agent-in-Charge, Washington Region, U.S. Department of Labor Office of Inspector General. “As the primary law enforcement agency responsible for investigating unemployment insurance fraud, the Department of Labor Office of Inspector General is committed to supporting the prosecution of individuals who take advantage of unemployment insurance programs. We are grateful to the U.S. Attorney’s Office, the Virginia Employment Commission, and our law enforcement partners for their invaluable support of our mission.”

“Intentional abuse of COVID-19 unemployment benefits for personal gain is appalling,” said Joseph V. Cuffari, Inspector General for the Department of Homeland Security. “Today’s sentencing illustrates that DHS OIG and our law enforcement partners will work tirelessly to dismantle these greed-driven schemes.”

As part of their scheme, Smith’s co-conspirator would provide her with the names, dates of birth, and Social Security numbers of inmates serving a sentence at Baskerville Correctional Center. Smith would then file unemployment claims with the Virginia Employment Commission using that information. Once the applications were approved, Smith would share the proceeds of the crime with the inmates whose personal information she used to file the fraudulent claims, keeping a portion of the proceeds for herself. The applications contained several false statements such as a false physical address, rather than the address of the correctional facility at which the inmates were actually living; a false last employer; and a false certification that the inmates were ready, willing, and able to work in the event employment became available.

Smith is scheduled to be sentenced on September 9. She faces a maximum penalty of 30 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Derek Pickle, Special Agent-in-Charge of the Washington, DC Regional Office, U.S. Department of Labor, Office of Inspector General; Joseph V. Cuffari, Inspector General for the Department of Homeland Security; Jerald W. Page, Special Agent in Charge of the U.S. Secret Service’s Richmond Field Office; and Eric D. English, Chief Henrico County Police Division, made the announcement after U.S. District Judge John A. Gibney, Jr. accepted the plea.

This investigation was conducted under the auspices of “Operation Checkmate,” the Virginia Department of Corrections Inmate Unemployment Insurance Fraud Task Force. The task force is led by the U.S. Attorney’s Office for the Eastern District of Virginia, DOL-OIG, DHS-OIG, and the Virginia Department of Corrections. This investigation included significant assistance from the Virginia Employment Commission.

Assistant U.S. Attorney Kashan Pathan is prosecuting the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:21-cr-60.

NORFOLK, Va. – Today, a Jacksonville, Florida man was the sixth and final defendant to enter a guilty plea for his role in a multi-state anabolic steroid conspiracy that operated in multiple states across the country.

According to court documents, law enforcement received information in February 2020 that Erik Eckert, 34, a Petty Officer with the U.S. Navy, was distributing anabolic steroids to an individual in Norfolk. The investigation revealed that Eckert was receiving wholesale quantities of anabolic steroids from a drug trafficking organization run by his co-conspirator, Michael Lambert, who pleaded guilty to drug distribution charges earlier this year. Eckert then sold the steroids to others, including fellow servicemembers.

Eckert is one of six members of the trafficking network, led by Michael Lambert, who have been charged in this case. In early 2020, Lambert and his wife, Laura Lambert, rented a residence in Surry County, where they used raw materials received from China to manufacture liquid and pill-form steroids for wholesale distribution. Lambert’s products were advertised on various underground internet forums and, with the assistance of his co-conspirators, the group shipped wholesale quantities of steroids through the U.S. Postal Service to various states for further distribution.

The organization concealed its activities by using false names and identity information, encrypted messaging platforms, and cyber-currency accounts. The Lamberts used the proceeds from the conspiracy to purchase luxury vehicles, jewelry, and a horse, among other items.

The following defendants involved in the organization have pleaded guilty to the crimes listed below:

Name, Age

Charges

Total Maximum Penalties

Sentencing Date

Michael Steven Lambert, a/k/a “Christopher DeCamillo,” 36

Conspiracy to Distribute and Possess with the Intent to Distribute Controlled Substances; Possession with the Intent to Distribute; and Felon in Possession of a Firearm

50 years

July 13, 2021

Laura Frances Lambert, a/k/a “Laura Purcell,” 31

Conspiracy to Distribute and Possess with the Intent to Distribute Controlled Substances; Possession with the Intent to Distribute=

20 years

Sept. 23, 2021

Adam Morin, 35

Making an Unregistered Silencer

10 years

Aug. 31, 2021

Hamdy Sayed, 36

Conspiracy to Distribute and Possess with the Intent to Distribute Controlled Substances

10 years

Sept. 9, 2021

Clyde Edward Peele, a/k/a “Bo,” 45

Conspiracy to Distribute and Possess with the Intent to Distribute Controlled Substances

10 years

Oct. 5, 2021

Erik Eckert, 34

Conspiracy to Distribute and Possess with the Intent to Distribute Controlled Substances

10 years

Oct. 12, 2021

Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service (USPIS); Gregory Scovel, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office; Charlie J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division; and Paul Neudigate, Chief of Virginia Beach Police, made the announcement after U.S. District Judge Roderick C. Young accepted the plea.

Special Assistant U.S. Attorney Kristin Bird and Assistant U.S. Attorney Andrew Bosse are prosecuting the case.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-112.

ALEXANDRIA, Va. – A federal jury convicted a Woodbridge man yesterday of illegally possessing a firearm after previously being convicted of a felony.

According to court records and evidence presented at trial, on March 22, 2019, Marc Allen Williams, 34, was staying at an apartment in Triangle rented by an acquaintance. Williams, who previously was convicted of a felony, had in his possession a nine-millimeter handgun. Later that afternoon, FBI agents and officers from the Prince William County Police Department executed a search warrant at the apartment in connection with a separate investigation.

When law enforcement knocked and announced their presence, Williams ran into the back bedroom of the apartment and into the bathroom. There, he stashed the firearm in the bathroom’s flush tank. Despite his efforts, law enforcement located the loaded gun.

When the defendant was arrested following the search warrant, he provided a false last name to law enforcement. The last name he provided matched the last name of the original purchaser of the firearm. Further, the FBI recovered DNA from the firearm. A sample of the defendant’s DNA, taken pursuant to a search warrant, was a match for the DNA on the firearm.

Williams faces a maximum of ten years in prison when sentenced on September 17. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division; and Peter Newsham, Chief of Prince William County Police, made the announcement after Senior U.S. District Judge Liam O’Grady accepted the verdict.

Assistant U.S. Attorneys Katherine E. Rumbaugh and Rachael C. Tucker are prosecuting the case.

This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-242.

ALEXANDRIA, Va. – 360 Patriot Enterprises, LLC (360 Patriot), located in Alexandria, Virginia, and its former minority shareholder, 360 Ventures LLC (360 Ventures), located in Wilmington, Delaware, agreed to pay a combined $1.12 million to settle civil fraud allegations that 360 Patriot was awarded two U.S. Army contracts set aside for service-disabled veteran-owned small businesses (SDVOSB) at a time when 360 Patriot was not controlled by a service-disabled veteran (SDV), announced Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia. 

In order to qualify as a SDVOSB, companies must meet defined eligibility criteria, including that the company is at least 51% unconditionally and directly owned and controlled by one or more SDVs. The United States alleged that from March 2015 to December 2017, 360 Patriot was controlled by a non-SDV, and 360 Ventures facilitated the non-SDV’s control of the company under previous ownership and management. During that time, 360 Patriot was awarded two Army contracts that were set aside for qualified SDVOSBs. 

360 Patriot’s current management submitted a written contractor disclosure to the Department of Defense Office of Inspector General in October 2020, describing the company’s likely prior control by a non-SDV.   

The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia; the Defense Criminal Investigative Service; U.S. Army Criminal Investigation Command, Major Procurement Fraud Unit; and the Naval Criminal Investigative Service.

The matter was investigated by Assistant U.S. Attorneys Kristin S. Starr and William Hochul.

The civil claims settled by the settlement agreement are allegations only; there has been no determination of civil liability.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.

ALEXANDRIA, Va. – KC Investments Group, Inc. (KC Inc.) and its sole individual owner, Sunu P. KC, of Chantilly, have agreed to pay $230,414.65 to settle civil fraud allegations that KC Inc., through Sunu P. KC, obtained multiple loans during the first draw of the Paycheck Protection Program (PPP), announced Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia.

The PPP was established in March 2020 as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, and the program has been managed by the Small Business Administration (SBA). The PPP was intended to provide loans to qualified businesses to allow them to maintain payroll and operations through the COVID-19 pandemic. Each qualified business was allowed to receive only one PPP loan during the first phase of the program that ran from February 15, 2020 to December 31, 2020.

The government alleged that in April 2020, Sunu P. KC applied for PPP loans through both KC Inc. and his former company, KC Investments Group, LLC, the latter of which was not operating at the time. The government further alleged that in the loan applications, Sunu P. KC certified that KC Inc. would not receive multiple PPP loans, but both PPP loans were deposited into KC Inc.’s bank account.

As part of the resolution, KC Inc. and Sunu P. KC agreed to repay the second PPP loan within 30 days, together with the loan processing fee paid to the bank by the SBA, as well as an additional monetary amount pursuant to the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA).

The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia and the SBA’s Office of General Counsel and Office of Inspector General.

The matter was investigated by Assistant U.S. Attorneys William Hochul and Kristin S. Starr.

The civil claims settled by this agreement are allegations only; there has been no determination of civil liability. A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.

RICHMOND, Va. – Last Friday, a federal jury in Richmond convicted Ronnell Kareem Levon Johnson, 27, of Norfolk, for his role in robbing a Sprint Store in Colonial Heights in January 2019.

“As the evidence at trial demonstrated, the defendant and his co-conspirator participated in an armed robbery in which they restrained and frightened the victims,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Thanks to the thorough investigative efforts of our law enforcement partners and the trial team, the defendant has been held accountable for his role in jeopardizing the safety of our community members.”

According to court records and evidence presented at trial, on the afternoon of January 7, 2019, Johnson and his co-conspirator, T.R., traveled from the Norfolk area to Colonial Heights to commit a violent armed robbery of a Sprint Store. During the robbery, T.R. brandished a loaded .40 caliber Ruger semi-automatic pistol and forced two employees into a back room of the store, where he let Johnson in through the back entrance. Johnson entered the store and started gathering Sprint Store merchandise into a bag.

Johnson and T.R. then held the two employees hostage in the back room, and attempted to tie up both employees while they completed the robbery. Due to a time-delay lock on the store’s safe, the defendants had to wait approximately twenty minutes for the safe to open. During that time, two separate customers entered the front of the store. T.R. let one of the employees assist each customer, along with a warning that the employee would be killed if he tried to alert anyone about the crime. The employee followed those instructions and the final customer left without incident. Minutes after the second customer departed, the time-delay lock on the safe opened, allowing Johnson and T.R. to steal dozens of cellular telephones and other store merchandise valued at approximately $25,000.

During a court-authorized search of T.R.’s residence, officers recovered the loaded .40 caliber Ruger semi-automatic pistol used in the robbery, various stolen Sprint Store items, and other evidence. T.R. later pleaded guilty for his role in the armed robbery, as well as additional charges. Using toll records and cellular tower data, law enforcement later identified Johnson as T.R.’s co-conspirator in the armed robbery based on Johnson’s travel to and from the Colonial Heights Sprint Store on January 7, 2019, along with other evidence.

The jury convicted Johnson on one count of robbery affecting commerce. Johnson faces a maximum penalty of 20 years in prison when sentenced on August 13. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Charlie J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division; Colonel Gary T. Settle, Superintendent of Virginia State Police; and Colonel Jeffrey W. Faries, Chief of Colonial Heights Police, made the announcement after Senior U.S. District Judge Robert E. Payne accepted the verdict. Assistant U.S. Attorneys Kenneth R. Simon, Jr. and Michael Gill are prosecuting the case.

This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:20-cr-133.

ALEXANDRIA, Va. – On May 28, 2021, pursuant to court orders issued in the Eastern District of Virginia, the United States seized two command-and-control (C2) and malware distribution domains used in recent spear-phishing activity that mimicked email communications from the U.S. Agency for International Development (USAID). This malicious activity was the subject of a May 27, 2021 Microsoft security alert, titled “New sophisticated email-based attack from Nobelium,” in which Microsoft attributed the activity to a nation-state group.

The Department’s seizure of the two domains was aimed at disrupting the malicious actors’ follow-on exploitation of victims, as well as identifying compromised victims. However, the actors may have deployed additional backdoor accesses between the time of the initial compromises and the seizures.

“Cyber intrusions and spear-phishing email attacks can cause widespread damage throughout affected computer networks, and can result in significant harm to individual victims, government agencies, NGOs, and private businesses,” said Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia. “As demonstrated by the court-authorized seizure of these malicious domains, we are committed to using all available tools to protect the public and our government from these worldwide hacking threats.”

“Last week’s action is a continued demonstration of the Department’s commitment to proactively disrupt hacking activity prior to the conclusion of a criminal investigation,” said Assistant Attorney General John C. Demers for the Justice Department’s National Security Division. “Law enforcement remains an integral part of the U.S. government’s broader disruption efforts against malicious cyber-enabled activities, even prior to arrest, and we will continue to evaluate all possible opportunities to use our unique authorities to act against such threats.”

“The FBI remains committed to disrupting this type of malicious cyber activity targeting our federal agencies and the American public,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “We will continue to use all of the tools in our toolbelt and leverage our domestic and international partnerships to not only disrupt this type of hacking activity but to impose risk and consequences upon our adversaries to combat these threats.”

“Friday’s court-authorized domain seizures reflect the FBI Washington Field Office’s continued commitment to cyber victims in our region,” said Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office. “These actions demonstrate our ability to quickly respond to malicious cyber activities by leveraging our unique authorities to disrupt our cyber adversaries.”

As described in the seizure documents, on or about May 25, 2021, malicious actors commenced a wide-scale spear-phishing campaign leveraging a compromised USAID account at an identified mass email marketing company. Specifically, the compromised account was used to send spear-phishing emails, purporting to be from USAID email accounts and containing a “special alert,” to thousands of email accounts at over one hundred entities

Upon a recipient clicking on a spear-phishing email’s hyperlink, according to the court documents, the victim computer was directed to download malware from a sub-domain of theyardservice[.]com. Using that initial foothold, the actors then downloaded the Cobalt Strike tool to maintain persistent presence and possibly deploy additional tools or malware to the victim’s network. The actors’ instance of the Cobalt Strike tool received C2 communications via other subdomains of theyardservice[.]com, as well as the domain worldhomeoutlet[.]com. It was those two domains that the Department seized pursuant to the court’s seizure orders.

The United States Attorney’s Office for the Eastern District of Virginia and the National Security Division’s Counterintelligence and Export Control Section are investigating this matter in coordination with the FBI’s Cyber Division and Washington Field Office. 

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; John C. Demers, Assistant Attorney General for National Security; Bryan Vorndran, Assistant Director of the FBI’s Cyber Division; and Steven M. D’Antuono, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia.

WASHINGTON – On May 28, pursuant to court orders issued in the Eastern District of Virginia, the United States seized two command-and-control (C2) and malware distribution domains used in recent spear-phishing activity that mimicked email communications from the U.S. Agency for International Development (USAID). This malicious activity was the subject of a May 27 Microsoft security alert, titled “New sophisticated email-based attack from Nobelium,” and a May 28 FBI and Cybersecurity and Infrastructure Security Agency joint cybersecurity advisory.

The Department’s seizure of the two domains was aimed at disrupting the malicious actors’ follow-on exploitation of victims, as well as identifying compromised victims. However, the actors may have deployed additional backdoor accesses between the time of the initial compromises and last week’s seizures.

“Last week’s action is a continued demonstration of the Department’s commitment to proactively disrupt hacking activity prior to the conclusion of a criminal investigation,” said Assistant Attorney General John C. Demers for the Justice Department’s National Security Division. “Law enforcement remains an integral part of the U.S. government’s broader disruption efforts against malicious cyber-enabled activities, even prior to arrest, and we will continue to evaluate all possible opportunities to use our unique authorities to act against such threats.”

“Cyber intrusions and spear-phishing email attacks can cause widespread damage throughout affected computer networks, and can result in significant harm to individual victims, government agencies, NGOs, and private businesses,” said Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia. “As demonstrated by the court-authorized seizure of these malicious domains, we are committed to using all available tools to protect the public and our government from these worldwide hacking threats.”

“Friday’s court-authorized domain seizures reflect the FBI Washington Field Office’s continued commitment to cyber victims in our region,” said Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office. “These actions demonstrate our ability to quickly respond to malicious cyber activities by leveraging our unique authorities to disrupt our cyber adversaries.”

“The FBI remains committed to disrupting this type of malicious cyber activity targeting our federal agencies and the American public,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “We will continue to use all of the tools in our toolbelt and leverage our domestic and international partnerships to not only disrupt this type of hacking activity but to impose risk and consequences upon our adversaries to combat these threats.”

On or about May 25, malicious actors commenced a wide-scale spear-phishing campaign leveraging a compromised USAID account at an identified mass email marketing company. Specifically, the compromised account was used to send spear-phishing emails, purporting to be from USAID email accounts and containing a “special alert,” to thousands of email accounts at over one hundred entities.

Upon a recipient clicking on a spear-phishing email’s hyperlink, the victim computer was directed to download malware from a sub-domain of theyardservice[.]com. Using that initial foothold, the actors then downloaded the Cobalt Strike tool to maintain persistent presence and possibly deploy additional tools or malware to the victim’s network. The actors’ instance of the Cobalt Strike tool received C2 communications via other subdomains of theyardservice[.]com, as well as the domain worldhomeoutlet[.]com. It was those two domains that the Department seized pursuant to the court’s seizure order.

The National Security Division’s Counterintelligence and Export Control Section and the United States Attorney’s Office for the Eastern District of Virginia are investigating this matter in coordination with the FBI’s Cyber Division and Washington Field Office.

RICHMOND, Va. – Four defendants pleaded guilty in the Eastern District of Virginia to federal dogfighting and conspiracy charges for their roles in an interstate dogfighting network across the District of Columbia, Maryland, Virginia, and New Jersey.

“Dogfighting is absolutely intolerable and callously subjects defenseless animals to inhumane treatment and abuse,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We must protect and care for these animals—not cruelly turn them against each other for profit. Those who engage in this deplorable conduct will face justice to the fullest extent of the law.”

According to court documents filed in connection with the cases, four defendants—Odell S. Anderson Sr., 52, of the District of Columbia; Emmanuel A. Powe Sr., 46, of Frederick, Maryland; Chester A. Moody Jr., 46, of Glenn Dale, Maryland; and Carlos L. Harvey, 46, of King George, Virginia—and their co-conspirators participated in animal-fighting ventures from April 2013 through July 11, 2018. Those ventures involved training, transporting, and breeding dogs for dogfighting events, including at least one specific “two-card” event on April 3, 2016.

For the April 2016 event, Anderson, Powe, and Harvey met up with others in the parking lot of Walmart in King George, Virginia, and they followed one of the people in their vehicles to the location of a fight. Moody, Powe, and Anderson then participated in a pre-scheduled “two-card” dogfight, which is an event involving two separate dogfights with different dogs and handlers. This event involved a strict training regimen the dogfighters put the dogs through for several weeks before the event. At least one of the dogs died due to its injuries in this April 2016 dogfight.

The defendants also maintained other fighting dogs at their residences, as well as dogfighting equipment, including dog treadmills, “med kits,” “breeding stands” used to immobilize female dogs, and chains weighing up to several pounds per linear foot.

“Organized dogfighting—whether on a professional, hobbyist or street fighter level—does not have a place in our society. Dogfighting is an extremely violent and secretive venture of animal abuse, and bringing young children to these fighting events also exposes another generation to indifference towards animal cruelty and disrespect for the law against this violent and illegal activity,” said Acting Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division (ENRD).

“The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures, which often entail other forms of criminal activity,” said Special Agent in Charge Bethanne M. Dinkins of the U.S. Department of Agriculture-Office of Inspector General (USDA-OIG). “Together with the Department of Justice, animal fighting is an investigative priority for USDA-OIG, and we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal-fighting ventures.”

Odell Anderson Sr. pleaded guilty today to conspiracy to violate the animal-fighting prohibitions of the Animal Welfare Act by conspiring with others to sponsor and exhibit dogs in a dogfight, as well as to buy, sell, possess, train, transport, deliver, and receive dogs for the purposes of having those dogs participate in animal-fighting ventures. Additionally, Anderson pleaded guilty to one felony count of causing a child under the age of 16 to attend an animal-fighting venture.

Previously, on May 10, 2021, Emmanuel Powe Sr. pleaded guilty to conspiracy to violate the animal-fighting prohibitions of the Animal Welfare Act. On April 28, 2021, Chester Moody Jr. and Carlos Harvey each pleaded guilty to the same conspiracy. All four defendants entered their guilty pleas before U.S. District Judge John A. Gibney Jr. in Richmond, Virginia.

Moody will be sentenced on August 27, followed by Powe and Harvey on September 1 and Anderson on October 6. Each animal-fighting conspiracy charge carries a maximum sentence of five years in prison and a $250,000 fine. The charge against Anderson of taking a minor to attend a dogfight carries a maximum sentence of three years in prison and a $250,000 fine. The District Court will determine each defendant’s sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

This case was prosecuted as part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dogfighting. The phrase “Grand Champion” is used by dogfighters to refer to a dog with more than five dogfighting “victories.”

Assistant U.S. Attorney Olivia L. Norman of the U.S. Attorney’s Office for the Eastern District of Virginia and Trial Attorney Shennie Patel of the Justice Department’s Environmental Crimes Section prosecuted the cases. The case is being investigated by the USDA-OIG, with assistance from the FBI. The Humane Society of the United States, along with other entities, assisted with the care of the dogs seized by federal law enforcement.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 3:21-cr-23, 24, 25, and 26.

ALEXANDRIA, Va. – For the month of June, the U.S. Attorney’s Office for the Eastern District of Virginia (EDVA) will honor the vast contributions and important history of the Lesbian, Gay, Bisexual, Transgender, and Queer community during LGBTQ+ Pride Month.

“Our Office commemorates the immense contributions of LGBTQ+ members of our community and celebrates the victories they have achieved in pursing equality,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “While enduring intolerable and unjust legal and cultural discrimination, LGBTQ+ individuals have served honorably in every aspect of our Nation’s government, from the military to elected office to the judicial system, including as essential members of EDVA. We recognize their past struggles to receive equal treatment under the law. We further commit ourselves to the continued elimination of discrimination against our LGBTQ+ colleagues, friends, and family, who strengthen our communities through the courage of their example, clearing a path for individuals of all sexual orientations and gender identities.”

In 1969, after a police raid on the Stonewall Inn in New York City, members of the LGBTQ+ community engaged in several days of protest of discrimination against LGBTQ+ people. The following year, activists organized the first annual Pride March on June 28, 1970, a several-thousand-person march from the Stonewall Inn to Central Park commemorating the riots and protesting discrimination against LGBTQ+ people. Although not the first demonstration against LGBTQ+ discrimination, that Pride March marked the beginning of the galvanizing force that became a national civil rights movement to demand equal rights and protections for LGBTQ+ citizens under the law, ultimately culminating in the creation of the first gay pride parades in Chicago, Los Angeles, New York City, and San Francisco. Since 1970, the LGBTQ+ community has celebrated every June as Pride Month and held annual Pride Marches in a growing number of cities, including internationally.

The first presidential proclamation recognizing Pride Month occurred in 1999. On January 20, 2021, President Biden issued Executive Order 13988, directing the heads of every federal agency to take steps to prevent and combat discrimination on the basis of sexual orientation and gender identity, both in the federal government itself and in its enforcement of anti-discrimination laws such as Title VII. Pride Month 2021 takes place during a time of continued hardship for the LGBTQ+ community, including a rise in violence against transgender individuals, predominately transgender women of color.

This month, EDVA will host several office-wide events, including informational sessions on civil rights and other issues facing the LGBTQ+ community. EDVA’s commemoration of LGBTQ+ Pride Month will also include an office-wide virtual panel discussion with the Honorable Todd M. Hughes of the U.S. Court of Appeals for the Federal Circuit, who became the first openly gay judge on a federal appellate court (2013); the Honorable J. Paul Oetken of the U.S. District Court for the Southern District of New York, who became the first openly gay male federal judge (2011); and the Honorable Marisa J. Demeo of the Superior Court of the District of Columbia, who served as the co-founder of the Justice Department’s Pride organization and its first President (1994).

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.

NEWPORT NEWS, Va. – A Virginia Beach man pleaded guilty today to defrauding the IRS out of more than $2.5 million of taxes by, among other things, hiding assets, making false statements about his ability to pay, using a nominee company to conduct business, and diverting huge sums of money to pay creditors instead of the IRS.

“The defendant attempted to evade the payment of over $2.5 million in taxes and instead used his ill-gotten gains for personal expenses such as an oceanfront home, luxury travel, and yacht club dues,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “EDVA is committed to holding accountable those who try to defraud the system rather than paying their fair share.”

According to court documents, Richard Yanek, 52, has owned and operated a credit card processing business since at least 1995. Between 2013 and 2018, Yanek withheld employment taxes from his employees but failed to consistently pay more than a million dollars of those withholdings to the IRS. Each year, Yanek provided false employment tax forms to his employees, who filed their own taxes and mistakenly believed that the amounts withheld from their wages had been paid to the Social Security program.

Yanek had not filed a personal income tax return or paid personal income taxes since 2010, despite earning and spending millions of dollars on the mortgage for his oceanfront home, personal credit cards, private school tuition, and golf and yacht club dues. Yanek had his personal tax returns prepared by his accountant for the years 2011 through 2015, all of which reported substantial taxes due and owing. However, Yanek intentionally chose not to file these returns with the IRS, and he later made false statements to the IRS and law enforcement when asked why those returns had not been filed.

Yanek is scheduled to be sentenced on September 27. He faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Darrell J. Waldon, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after U.S. District Judge Raymond A. Jackson accepted the plea.

Assistant U.S. Attorneys Mack Coleman and Howard Zlotnick are prosecuting the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:21-cr-26.