Eastern District of Virginia

ALEXANDRIA, Va. – A New Jersey woman was sentenced today to two years in prison for engaging in a bribery and procurement fraud scheme while she served as a contracting officer for the Broadcasting Board of Governors (BBG).

“The defendant sold out her position by receiving bribe payments in exchange for providing preferential treatment to a contracting firm that received millions of dollars in taxpayer money,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “This case serves as another example of our firm commitment to seeking equal justice under the law and holding accountable government officials who betray their oaths and violate the public’s trust.”

According to court documents, Diane D. Sturgis, 62, of Glassboro, served as a contracting officer for the BBG’s International Broadcast Bureau, Office of Contracts until September 2017. Sturgis, among other things, supervised several contracts awarded to a Virginia information technology and data management firm, including a blanket purchase agreement.

In September 2014, the BBG and the U.S. Department of Defense used the firm’s blanket purchase agreement to issue a task order that subsequently served as a vehicle for procuring millions of dollars in services from the firm. In November 2014, Sturgis and the firm’s owner used the same task order to fill several contracting positions in Sturgis’ office in exchange for initial payments totaling at least $330,000. Sturgis and the firm’s owner agreed that the firm would nominally hire Sturgis’ relative to fill one of these positions in exchange for preferential treatment and the performance of official acts benefitting the firm.

Between December 2014 and June 2015, the firm issued four payments to Sturgis’ relative totaling $30,000. The relative performed no consulting work in exchange for these payments. Instead, Sturgis prepared the periodic consulting reports and accompanying invoices for the relative, and Sturgis instructed the relative to save the periodic reports and invoices on the relative’s computer and then submit the invoices for payment. The firm sought approval for payments from the BBG, which Sturgis authorized and approved.

“When a public official accepts bribes during the government contracting process, it is a betrayal of the U.S. taxpayer and the principle of fairness in government contracting,” said James A. Dawson, Special Agent in Charge of the FBI Washington Field Office Criminal Division. “Today’s sentencing is yet another example of the dedication and perseverance of the FBI and our partners to root out corruption and deceit. Sturgis defrauded the U.S. and taxpayers and will be held accountable for her unlawful and duplicitous actions.”

On July 28, 2020, Sturgis pleaded guilty to conspiracy to commit bribery and honest services wire fraud. As part of her sentencing today, Sturgis was ordered to pay $45,000 in restitution and a $10,000 fine.

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; Special Agent in Charge Elisabeth Heller of the U.S. Department of State Office of Inspector General; and Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office made the announcement after sentencing by Senior U.S. District Judge Liam O’Grady.

The Department of State’s Office of Inspector General and the FBI investigated the case.

Special Assistant U.S. Attorney for the Eastern District of Virginia and Senior Litigation Counsel Edward P. Sullivan of the Public Integrity 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. 1:20-cr-158.

A New Jersey woman was sentenced today to two years in prison for engaging in a bribery and procurement fraud scheme.

According to court documents, Diane D. Sturgis, 62, of Glassboro, served as a contracting officer for in the International Broadcast Bureau, Office of Contracts, of the Broadcasting Board of Governors (the BBG) until September 2017. In that capacity, Sturgis, among other things, supervised several contracts awarded to a Virginia information technology and data management firm, including a blanket purchase agreement.

In September 2014, the BBG and the U.S. Department of Defense used the firm’s blanket purchase agreement to issue a task order that subsequently served as a vehicle for procuring millions of dollars in services from the firm. In November 2014, Sturgis and the firm’s owner used the same task order to fill several contracting positions in Sturgis’ office in exchange for initial payments totaling at least $330,000. Sturgis and the firm’s owner agreed that the firm would nominally hire Sturgis’ relative to fill one of these positions in exchange for Sturgis giving the firm preferential treatment.

Between December 2014 and June 2015, the firm issued four payments to Sturgis’ relative totaling $30,000. The relative performed no consulting work in exchange for these payments; instead, Sturgis prepared the periodic consulting reports and accompanying invoices for the relative and instructed the relative to save the periodic reports and invoices on the relative’s computer and then submit the invoices for payment. The firm sought approval for payments from the BBG, which Sturgis authorized and approved.

On July 28, 2020, Sturgis pleaded guilty to conspiracy to commit bribery and honest services wire fraud. As part of her sentencing today, Sturgis was ordered to pay $45,000 in restitution and a $10,000 fine.

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

The Department of State, Office of Inspector General and the FBI investigated the case.

Special Assistant U.S. Attorney for the Eastern District of Virginia and Senior Litigation Counsel Edward P. Sullivan of the Criminal Division’s Public Integrity Section prosecuted the case.

A Virginia man was sentenced today to more than eight years in prison for his involvement in a fraud scheme resulting in millions of dollars of losses to investors.

Daniel Boice, 41, of Alexandria, pleaded guilty to one count of securities fraud and one count of wire fraud on Dec. 3, 2020. According to court documents, beginning in 2015, Boice fraudulently solicited investments in Trustify, an Arlington-based company that Boice promoted as the “Uber” of private investigator services. Boice raised more than $18 million from over 250 individual and corporate investors by, among other things, falsely overstating Trustify’s financial performance. To secure investor capital, Boice inflated Trustify’s monthly and annual revenues in detailed fraudulent financial statements and investor presentations, and he fabricated large corporate business relationships to support his false statements about Trustify’s growth. In addition, Boice created a fake email account to pose as a prominent potential investor, and he then used the account to send a fraudulent email to successfully convince an investment firm to invest nearly $2 million in Trustify.

Boice also made false statements to investors about the amount of investor funds that he would personally receive, while diverting a substantial amount of the investor money to his own benefit. Boice personally derived at least $3.7 million in proceeds from the fraud, including several million dollars in transfers from Trustify to bank accounts under his control and in personal charges on credit cards paid with Trustify funds. Boice diverted Trustify funds, for example, to secure the down payment on a $1.6 million house in Alexandria and a $1 million beach house in New Jersey, as well as to pay for a chauffeur, house manager, and various luxury items. Boice also used Trustify funds to pay for family vacations, private jet trips, and over $100,000 for premium seats at sporting events.

In 2019, faced with declining revenues and the consequences of Boice’s diversion of company assets for his personal expenditures, Trustify was placed into corporate receivership by the Delaware Chancery Court. The company’s collapse led to over $18 million in losses to investors and over $250,000 in unpaid wages and associated costs for Trustify’s employees.

Additionally, Boice was ordered to pay $18,131,742.21 in restitution and forfeit $3.7 million.

Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Raj Parekh of the Eastern District of Virginia; and Special Agent in Charge James A. Dawson of the FBI’s Washington Field Office Criminal Division made the announcement.

The FBI’s Washington Field Office investigated the case with assistance from the Virginia State Corporation Commission. 

Trial Attorney Blake Goebel of the Justice Department’s Fraud Section and Assistant U.S. Attorney Russell L. Carlberg of the U.S. Attorney’s Office for the Eastern District of Virginia prosecuted the case.

ALEXANDRIA, Va. – The CEO and co-founder of Trustify Inc., a privately-held technology start-up company that connected customers with private investigators, was sentenced to over eight years in prison today for conducting a fraudulent scheme that led to the company’s collapse and resulted in over $18 million in losses to more than 250 individual and corporate investors.

“By spinning an elaborate web of lies, Boice fraudulently induced victims to invest over $18 million in his company so that he could misappropriate millions of those dollars to fund his lavish lifestyle and personal aggrandizement,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “This case demonstrates that we will hold corporate executives accountable when they cast aside their fiduciary duties for personal financial gain.”  

According to court documents, beginning in 2015, Daniel Boice, 41, of Alexandria, fraudulently solicited investments in Trustify, an Arlington-based company that Boice promoted as the “Uber” of private investigator services. Boice raised more than $18 million from over 250 individual and corporate investors by, among other things, falsely overstating Trustify’s financial performance. To secure investor capital, Boice inflated Trustify’s monthly and annual revenues in detailed fraudulent financial statements and investor presentations, and he fabricated large corporate business relationships to support his false statements about Trustify’s growth. In addition, Boice created a fake email account to pose as a prominent potential investor, and he then used the account to send a fraudulent email to successfully convince an investment firm to invest nearly $2 million in Trustify.

Boice also made false statements to investors about the amount of investor funds that he would personally receive, while diverting a substantial amount of the investor money to his own benefit. Boice personally derived at least $3.7 million in proceeds from the fraud, including several million dollars in transfers from Trustify to bank accounts under his control and in personal charges on credit cards paid with Trustify funds. Boice diverted Trustify funds, for example, to secure the down payment on a $1.6 million house in Alexandria and a $1 million beach house in New Jersey, as well as to pay for a chauffeur, house manager, and various luxury items. Boice also used Trustify funds to pay for family vacations, private jet trips, and over $100,000 for premium seats at sporting events.

In 2019, faced with declining revenues and the consequences of Boice’s diversion of company assets for his personal expenditures, Trustify was placed into corporate receivership by the Delaware Chancery Court. The company’s collapse led to over $18 million in losses to investors and over $250,000 in unpaid wages and associated costs for Trustify’s employees.

Boice was sentenced today to 97 months in prison, followed by three years of supervised release. In addition, he was ordered to pay $18,131,742.21 in restitution and $3.7 million in forfeiture.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis, III. 

Acting U.S. Attorney Parekh also commended the Philadelphia Regional Office of the Securities and Exchange Commission and the Virginia State Corporation Commission, which conducted a parallel civil investigation of Boice and Trustify.

Assistant U.S. Attorney Russell L. Carlberg and Trial Attorney Blake Goebel of the Justice Department’s Fraud 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. 1:20-cr-167.

ALEXANDRIA, Va. – The U.S. Attorney's Office for the Eastern District of Virginia announced today the seizure of seven websites as part of ongoing efforts by Homeland Security Investigations (HSI) to combat online fraud schemes that seek to exploit the increased interest in vaccines, treatments, and employment opportunities associated with the COVID-19 pandemic.

According to court records, the United States obtained court authorization to seize four domains that purported to be the legitimate websites of Pfizer, Inc. (“Pfizer”)—specifically, “pfizermx.com,” “pfizer-vaccines.com,” “pfizerstockrate.com,” and “pfizerksa.com.” In addition, the government seized three websites claiming to be associated with the United Nations International Children’s Emergency Fund (UNICEF)—specifically, “unicefcovid19relief.com,” “unicefeverychild.com,” and “unicefinternship.com.” Although each of the seized domains purported to be the legitimate websites of either Pfizer or UNICEF, the sites instead appeared to have been designed to obtain the personal information of website visitors for nefarious purposes, such as fraud or phishing attacks.

“The online fraud and phishing schemes that were embedded within these seven sham websites sought to capitalize on the misfortunes of others during the global pandemic,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We urge the public to safeguard your sensitive personal information at all times, including from these fraudulent COVID-19 schemes. EDVA and our law enforcement partners will continue to aggressively seek justice for vulnerable community members who are preyed upon by these scammers.”

“The COVID-19 pandemic has created significant opportunities for fraudsters to take advantage of individuals seeking information, cures, or vaccines to protect themselves and others. The websites seized in these cases are alleged to be simply masquerading as legitimate COVID-related sites to steal personal information for potentially nefarious purposes,” said Special Agent in Charge Raymond Villanueva for HSI’s Washington, D.C. field office. “We urge the public to use extreme caution sharing any personal information online, especially in regards to COVID-19 vaccines, treatments, personal protective equipment or with unsolicited employment opportunities.”

According to the affidavits filed in support of these seizures, HSI identified and opened investigations into the seized domains between December 2020 and February 2021 after learning of their use in fraud schemes through notifications from the affected entities, and through an ongoing operation by HSI’s Cyber Crimes Center (C3) targeting malicious websites.

The domains “pfizermx.com,” “pfizerksa.com,” “pfizer-vaccines.com,” and “pfizerstockrate.com,” were used in websites that fraudulently displayed the registered trademarks of Pfizer and BioNTech SE (“BioNTech”) to facilitate apparent phishing schemes geared towards exploiting the increased interest in Pfizer and BioNTech-related products, including the Pfizer/BioNTech COVID-19 vaccine. The websites associated with pfizermx.com and pfizerksa.com presented themselves as Spanish and Arabic-language websites for Pfizer, respectively, and purported to facilitate orders of Pfizer products. Likewise, the website associated with “pfizer-vaccines.com” falsely presented itself as an online platform for obtaining information on the COVID-19 virus and Pfizer/BioNTech vaccine, while the website associated with “pfizersotckrate.com,” appeared to present itself as an online platform for advertising trading and stock options for Pfizer.

In reality, none of these websites appear to serve a legitimate purpose. Each instead used names, logos, and graphics of Pfizer and, in some instances BioNTech, as part of an apparent effort to trick visitors into submitting sensitive information. For instance, the websites using the domains pfizermx.com and pfizer-vaccines.com attempted to deceive individuals interested in obtaining information on the COVID-19 vaccine into contacting fraudulent phone numbers and email addresses that Pfizer did not control. The websites associated with the domains pfizerksa.com and pfizerstockrate.com similarly sought to trick visitors into submitting personal information to the perpetrators through the website, including bank account information through pfizerksa.com.

The websites associated with “unicefcovid19relief.com,” “unicefeverychild.com,” and “unicefintern ship.com” likewise leveraged the trademarks of UNICEF to facilitate apparent phishing schemes geared towards exploiting the increased interest in helping individuals who need assistance during the COVID-19 pandemic. Notably, the websites associated with each of these seized domains falsely claimed to offer employment opportunities associated with distributing COVID-19 relief funds, and the sites encouraged interested employees to submit personal information. According to the affidavit supporting the seizure warrant, each of these seized domains appeared to have been designed to collect the personal identifying information of website visitors for use in criminal schemes, such as fraud or phishing attacks, and to enlist unwitting victims in money laundering schemes.

The seizure of these seven domains by the government will prevent third parties from acquiring the names and using them to commit additional crimes. Individuals visiting those sites now will see a message indicating that the site has been seized by the federal government, and visitors will be redirected to another site for additional information.

Federal law enforcement agencies are united in their efforts to fight against COVID-19 fraud. HSI has identified tips to recognize and report COVID-19 fraud, and additional information and resources are available from the Department of Justice and the U.S. Attorney’s Office (EDVA). If you believe you are a victim of a fraud or attempted fraud involving COVID-19, you may also call the National Center for Disaster Fraud Hotline at 1-866-720-5721.

The seizure of the domain names was announced by Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C.

Acting U.S. Attorney Parekh commended the HSI Cyber Crimes Center, HSI Intellectual Property Rights Center (IPRC), and the HSI Washington Field Office for their work in these investigations.

The government is represented by Special Assistant U.S. Attorney Aarash Haghighat in these matters.

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. – The United States has seized “r-m-n.net” and “Almaalomah.com,” two websites that were unlawfully utilized by Kata’ib Hizballah, a Specially Designated National and a Foreign Terrorist Organization.

“The internet must not be used as a recruitment tool for terrorist organizations to promote violent extremism and spread their hateful rhetoric,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We stand committed with our law enforcement partners to use all available resources to combat terrorism.”

“Special Agents with the Bureau of Industry and Security’s Office of Export Enforcement will use all of the tools at our disposal to protect American citizens, including our military service members, from terrorist acts of violence inspired and directed via online platforms,” said Kevin J. Kurland, who is performing the non-exclusive duties of the Assistant Secretary for Export Enforcement at the Bureau of Industry and Security. “We will continue to aggressively disrupt Foreign Terrorist Organizations such as Kata’ib Hizballah and their efforts to utilize U.S. cyber infrastructure to harm U.S. national security.”

On July 2, 2009, the U.S. Secretary of Treasury designated Kata’ib Hizballah, an Iran-backed terrorist group active in Iraq, as a Specially Designated National for committing, directing, supporting, and posing a significant risk of committing acts of violence against Coalition and Iraqi Security Forces. On the same day, the U.S. Department of State designated Kata’ib Hizballah as a Foreign Terrorist Organization for committing or posing a significant risk of committing acts of terrorism.

On Aug. 31, 2020, pursuant to a seizure warrant in the District of Arizona, the United States seized “Aletejahtv.com” and “Aletejahtv.org.” “Aletejahtv.com” and “Aletejahtv.org,” served as Kata’ib Hizballah’s media arm and published internet communications such as videos, articles, and photographs. Within weeks, federal agents located the content from “Aletejahtv.com” and “Aletejahtv.org” on “Aletejah.tv” and “kataibhezbollah.com,” including the Kata’ib Hizballah flag and the words “Islamic Resistance, Kataib Hizbollah.” The content even included false information about COVID-19 designed to damage the perception of the United States in the minds of Iraqi citizens and to destabilize the region to the benefit of Iran.

On Oct. 14, 2020, pursuant to a seizure warrant issued in the Eastern District of Virginia, the United States seized “Aletejah.tv” and “kataibhezbollah.com.”

On March 25, 2021, pursuant to a seizure warrant issued in the Eastern District of Virginia, the United States seized “Almaalomah.com” and “r-m-n.net.” Visitors to the site received the following message:

Federal law prohibits designated entities like Kata’ib Hizballah from obtaining or utilizing goods or services, including website and domain services, in the United States without a license from the Office of Foreign Assets Control. “Almaalomah.com” and “r-m-n.net” are domain names that are owned and operated by a U.S. company based in Reston, Virginia. Kata’ib Hizballah did not obtain a license from the Office of Foreign Assets Control prior to utilizing the domain names.

This seizure was investigated by the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, Miami Field Office.

The U.S. Attorney’s Office for the Eastern District of Virginia and the Department of Justice’s National Security Division prosecuted the seizure.

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. – A Quantico man pleaded guilty today to wire fraud in connection with a scheme to embezzle over $380,000 from his former union, which represented federal law enforcement officers at the Pentagon.

“The defendant routinely embezzled money that belonged to a federal law enforcement union to fund his personal expenditures while vacationing in the Dominican Republic and to pay for his personal gambling at a casino,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “EDVA will continue to hold accountable those who steal and siphon off critical funds from our law enforcement partners.”

According to court documents, Arthur Penn, 64, served from 1999 through 2015 as the Chairman of the Fraternal Order of Police Defense Protective Service Labor Committee Pentagon, a local union that represented officers of the Pentagon Force Protection Agency. During his tenure, Penn routinely embezzled funds from the Union for his personal benefit, and spent the stolen funds on gambling, to pay for a personal trip to the Dominican Republic, and for his day-to-day living expenses.

“As alleged, for years Arthur Penn stole money from funds intended to benefit his fellow law enforcement colleagues and used the money for his own personal benefit and entertainment,” said James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division. “The FBI and our partners are dedicated to rooting out this type of opportunistic corruption and fraud, and ensuring those who commit these crimes are brought to justice.”

Penn sought to conceal and prevent the detection of his embezzlement by failing to make regular reports to Union members, by violating his obligation to file regular financial reports with the Department of Labor’s Office of Labor-Management Standards, and by siphoning off most of the embezzled funds through cash transactions, thereby avoiding the creation of financial records that would have revealed the fraud.

Penn is scheduled to be sentenced on July 2. He 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; Mark Wheeler, District Director, Washington District Office, U.S. Department of Labor, Office of Labor-Management Standards; and James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division, made the announcement after Senior U.S. District Judge T.S. Ellis, III accepted the plea.

Assistant U.S. Attorneys Matthew Burke and Christopher Hood 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. 1:20-cr-251.

ALEXANDRIA, Va. – A Mexican national pleaded guilty today to two counts of production of child pornography.

According to court documents, in March 2018, Abel Ambrocio, 54, of Alexandria, Virginia, developed an online relationship with a woman in Honduras over a social media platform. From around October 2018 through at least February 2019, Ambrocio instructed the woman to record and send him over 100 images of herself sexually abusing her two children—an approximately three-year-old boy and an approximately ten-year-old girl. Ambrocio instructed the mother to engage in specific sex acts with her children and record herself doing so on multiple occasions, even when she told Ambrocio that one of the children was in pain and crying from the previous sex act. Later, in March 2019, Ambrocio distributed images of the woman sexually abusing her three-year-old son over a social media platform.

“The defendant’s conduct, which caused the sexual abuse of two young children, is both horrific and heartbreaking” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “The production of child pornography inflicts devastating and lifelong harm to society’s most vulnerable victims. EDVA is committed to working with our law enforcement partners to bring child sexual predators to justice.”

Ambrocio pleaded guilty to two counts of production of child pornography. He is scheduled to be sentenced on August 4 and faces a mandatory minimum penalty of 15 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Nicholas L. McQuaid, Acting Assistant Attorney General of the Justice Department’s Criminal Division; James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division; and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after U.S. District Judge Anthony J. Trenga accepted the plea.

Special Assistant U.S. Attorney William G. Clayman and Assistant U.S. Attorney Jonathan S. Keim are prosecuting the case.

This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking. Significant assistance in this matter was provided by the Fairfax County Police. Tips regarding child exploitation and human trafficking can be provided to the task force at 1-800-CALL-FBI or tips.fbi.gov.

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 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. 1:20-cr-135.

ALEXANDRIA, Va. – The U.S. Attorney’s Office for the Eastern District of Virginia and the FBI condemn all acts of violence, racism, xenophobia, and intolerance against Asian Americans and Pacific Islanders across the nation and in our communities.

“Hate crimes and discrimination against anyone, including Asian Americans and Pacific Islanders, are reprehensible acts that are contrary to the ideals of our Nation and have no place in our society,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We will not stand still amid the horrific reports of racist and xenophobic acts of violence targeting Asian American and Pacific Islander individuals and communities nationwide. I reaffirm our Office’s unwavering commitment to ensuring that those who perpetrate federal crimes fueled by hate are held accountable, and EDVA stands united with our law enforcement partners in combating these injustices. Asian Americans and Pacific Islanders are our fellow Americans, and like all human beings, deserve dignity, respect, and the right to live without fear. As part of our collective responsibility to ensure equality and justice for all, I urge members of the community to report hate-based crimes to law enforcement to ensure that anyone who engages in this deplorable conduct can be brought to justice.”

“The Asian American and Pacific Islander community can trust that the FBI is dedicated to investigating hate crimes, which can have a devastating impact and bring fear to entire communities,” said Steven M. D’Antuono, Assistant Director in Charge of the FBI’s Washington Field Office. “A Core Value of the FBI is respecting the dignity of all those we protect. The FBI is committed to working with all communities to build trust and address the fears they experience due to hate and biased-based crimes, which have no place in our Nation.”

The U.S. Attorney’s Office for the Eastern District of Virginia urges the community to be vigilant and to report any suspected hate-based crime to the FBI by submitting an online tip at fbi.gov/tips, by calling 1-800-CALL-FBI, or by calling 911 in an emergency.

Federal law protects against discrimination based on race, gender, religion, national origin, sexual orientation, gender identity, disability, age, and citizenship in several important aspects of daily life, such as housing, employment, places of public accommodation, educational opportunities, and other areas. More information about these and other federal civil rights protections is available at https://civilrights.justice.gov/#your-rights.

Additional resources regarding hate crimes and bias incidents are available at https://www.fbi.gov/investigate/civil-rights/hate-crimes.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, Steven M. D’Antuono, Assistant Director in Charge of the FBI’s Washington Field Office, Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, and Christopher Derrickson, Acting Special Agent in Charge of the FBI’s Richmond 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.

ALEXANDRIA, Va. – A Warrenton man was sentenced today to 31 years in prison for a years-long “sextortion” scheme running from 2016 to 2020 in which he coerced numerous preteen and teenage victims to create and send him electronic images of themselves engaged in sexually explicit conduct.

“The defendant manipulated, coerced, and tormented children across the country by using an arsenal of repulsive tactics, which subjected these vulnerable minors to trauma that will painfully stay with them and their families forever,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “While no amount of jail time can ever undo the devastating physical and emotional damage the defendant has caused, we hope that today’s sentence will provide some measure of justice for the victims.”

Filippo Parlagreco, 36, pleaded guilty to the production, distribution, and possession of child pornography on November 5, 2020. According to court documents, in summer 2017, Parlagreco—posing as a teenage girl on social media—began communicating with a 14-year-old girl and persuaded her to send him sexually explicit photographs of herself. After she did so, Parlagreco posted the explicit photographs to another social media application and demanded that she produce and send him additional explicit images if she wanted them removed. Despite the victim blocking him on social media and reporting the crimes to law enforcement, Parlagreco continued to contact her with demands for sexually explicit images over the course of three years.

“This case demonstrates the grave dangers that children face online, where predators can pretend to be anyone and use sophisticated tactics to exploit the most vulnerable among us,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “The defendant used an array of technology to target and torment innocent children for his own perverse pleasure, but as this prosecution shows, the Department of Justice will continue to marshal its resources to pursue these predators and combat this epidemic.”

“The Federal Bureau of Investigation and its local, state, and federal partners work tirelessly on a daily basis to investigate and bring to justice individuals engaged in the exploitation and sexual abuse of children,” said Steven M. D’Antuono, Assistant Director in Charge of the FBI’s Washington Field Office. “With this sentencing, we have removed a dangerous child predator from the community, and sent a clear message that acts of sextortion against minors over the internet are taken seriously and will be investigated and brought to justice.”

Once law enforcement was able to identify Parlagreco, further investigation revealed that he had sexually exploited at least 13 other minor victims nationwide between 2016 and 2020 in a similar manner, including some as young as 11 years old. Parlagreco’s tactics ranged from false promises of confidentiality and misrepresentation of his identity to extortion and threats of prosecution. The evidence further showed that he traded child sexual abuse material with other offenders online, and that he possessed hundreds of images and dozens of videos of child sexual abuse in an encrypted portion of his phone.

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 D’Antuono of the FBI’s Washington Field Office made the announcement.

Assistant U.S. Attorney Jonathan Keim and Trial Attorneys Jessica Urban and Gwendelynn Bills of the Justice Department’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case.

The FBI’s Washington Field Office investigated the case with assistance from local law enforcement throughout the country.

The case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.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. 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-243.

A Virginia man was sentenced today to 31 years in prison for a years-long sextortion scheme in which he coerced numerous preteen and teenage victims to create and send him images of themselves engaged in sexually explicit conduct. The defendant was further sentenced to a lifetime of supervised release and ordered to pay restitution to the victims.

Filippo Parlagreco, 36, of Warrenton, pleaded guilty to production, distribution, and possession of child pornography on Nov. 5, 2020. According to court documents, the defendant — posing as a teenage girl on social media — began communicating with a 14-year-old girl and persuaded her to send him sexually explicit photographs of herself. After she did so, he posted the explicit photographs to another social media application and demanded that she produce and send him additional explicit images if she wanted them removed. Despite the victim blocking him on social media and reporting the crimes to law enforcement, the defendant continued to contact her with demands for sexually explicit images over the course of three years. Once law enforcement was able to identify the defendant, further investigation revealed that the defendant sexually exploited at least 13 other minor victims nationwide in a similar manner, including some as young as 11 years old; that he traded child sexual abuse material with other offenders online; and that he possessed hundreds of images and videos of child sexual abuse material in an encrypted portion of his phone.

“This case demonstrates the grave dangers that children face online, where predators can pretend to be anyone and use sophisticated tactics to exploit the most vulnerable among us,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “The defendant used an array of technology to target and manipulate children for his own perverse pleasure.  As this prosecution shows, the Department will continue to marshal its resources to pursue child predators and hold them accountable for victimizing children.”

“The defendant manipulated, coerced, and tormented children across the country by using an arsenal of repulsive tactics, which subjected these vulnerable minors to trauma that will painfully stay with them and their families forever,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “While no amount of jail time can ever undo the devastating physical and emotional damage the defendant has caused, we hope that today’s sentence will provide some measure of justice for the victims.”

“The FBI and its local, state, and federal partners work tirelessly on a daily basis to investigate and bring to justice individuals engaged in the exploitation and sexual abuse of children,” said Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office. “With this sentencing, we have removed a dangerous child predator from the community and sent a clear message that acts of sextortion against minors over the internet are taken seriously and will be investigated and brought to justice.”

This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force, which is composed of FBI Agents, along with task force officers from federal, state, and local law enforcement agencies in Northern Virginia and the District of Columbia. Significant assistance was provided from local law enforcement throughout the country.

Trial Attorneys Jessica Urban and Gwendelynn Bills of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Jonathan Keim of the Eastern District of Virginia prosecuted the case.

The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.

NEWPORT NEWS, Va. – A federal jury convicted a Washington, D.C. man today on charges of murder with a firearm, robbery, and conspiracy to possess and distribute cocaine.

According to court records and evidence presented at trial, on January 15, 2017, Dawhan Archible, 27, and his co-conspirators, murdered Luke Michael Dudley, 23, with a firearm in the aftermath of a drug deal. Archible is a self-proclaimed “bloods boss” and admitted he has been in the Bloods gang since he was 13 years old.

“Today’s verdict represents justice for victim Luke Dudley and his family, who will forever endure the unimaginable pain and heartache of losing him,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “EDVA remains steadfast in our fight against all forms of violence, and we are grateful to our prosecutors and law enforcement partners for their tireless commitment and dedication to this case.”

On the morning of the murder, Archible traded heroin for cocaine, which he then traded with Dudley for what he believed to be Percocet pills. Following the drug transaction, Archible learned that Dudley had provided him fake drugs instead of Percocet. In response, Archible and his co-conspirators broke into Dudley’s rooming house in Newport News and confronted him. Archible directed a co-conspirator to bring a firearm. Archible shot Dudley several times with a 9mm Glock pistol and then handed the gun to his co-conspirator, who also shot Dudley.

Later that afternoon, local law enforcement officers responded to a burglary call and found Dudley deceased from 17 gunshot wounds to the head, torso, and extremities. Archible’s DNA was linked to blood recovered from the scene.

Archible faces a maximum penalty of life imprisonment on the murder charge and 20 years on each of the remaining counts when sentenced on August 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; Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division; and Steve R. Drew, Chief of Newport News Police, made the announcement after U.S. District Judge David J. Novak accepted the verdict.

Assistant U.S. Attorneys Howard J. Zlotnick, Lisa R. McKeel, and Brian J. 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. 4:20-cr-15.

NORFOLK, Va. – A Portsmouth man was sentenced today to 31 months in prison for defrauding an elderly victim of over $228,000 based upon false promises to develop a solar farm on her rural North Carolina property.

“This defendant cruelly tricked a vulnerable widower out of her retirement income as a result of his elaborate lies and deception,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “EDVA, along with our law enforcement partners, will continue to vigorously investigate and prosecute fraud that impacts the elderly and other vulnerable members of our communities.”

According to court documents, David Pharr, 46, promised the victim—a retired teacher whose husband had recently passed away—that he would develop a solar farm on her rural property in Sampson County, North Carolina. The victim agreed to pay Pharr an initial investment amount in exchange for the right to receive a share of the profits of the project. Pharr never installed the solar farm on the victim’s property and never paid the victim any returns. Instead, from approximately March 2014 through May 2018, Pharr fraudulently induced the victim to mail, wire, and transfer him funds for purported expenses for the solar farm that he did not actually incur. The victim lost over $228,000 as a result of Pharr’s scheme.

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, and Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.

Assistant U.S. Attorney Daniel P. Shean 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-72.

NORFOLK, Va. – The former president of an escrow and title company pleaded guilty today to 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, 57, 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, 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.

Hamrin pleaded guilty to wire fraud and is scheduled to be sentenced on July 26. 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, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. District Judge Raymond A. Jackson accepted the plea.

Assistant U.S. Attorney Alan M. Salsbury 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-2.

ALEXANDRIA, Va. – A Vienna man was sentenced today to 33 months in prison for his role in a conspiracy that involved multiple swatting attacks targeting journalists, a Virginia university, a historic Virginia church, an Islamic Center in Arlington, Texas, and a former U.S. Cabinet member.  

“Swatting attacks are serious crimes that disrupt the operations of local emergency agencies, take first responders away from real emergencies, and place victims, community members, and law enforcement officers in grave danger,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “EDVA will continue to bring to justice those who threaten public safety with these menacing hoaxes, especially when those threats are motivated by racial or religious animus, which are intolerable and have no place in our society.”

According to court documents, John William Kirby Kelley, 20, conspired with John Cameron Denton, a former leader of the Atomwaffen Division in Texas, and others to conduct “swatting” calls. Swatting is a harassment tactic that involves deceiving emergency dispatchers into believing that a person or persons are in imminent danger of death or bodily harm, thus causing the dispatchers to send police and emergency services to an unwitting third party’s address.

“Swatting is not only harassment, but these calls also waste resources and put innocent people and first responders in danger,” said James A. Dawson, Special Agent in Charge of the FBI Washington Field Office Criminal Division. “The FBI and our law enforcement partners take all threats seriously and investigate instances of swatting. Law enforcement and first responders put their lives at risk every day, and swatting instances which increase that risk will not be tolerated.”

Kelley managed the online chatroom where conspirators chose targets and regularly coordinated the swatting calls. Many of the conspirators held white supremacist views and targeted individuals because they were motivated by racial animus. Kelley communicated with these white supremacists and used racial epithets.

Kelley is a former student at Old Dominion University. In early November 2018, he asked conspirators to swat Old Dominion University, which conspirators ultimately did on November 29 and December 4, 2018. In response to the bomb threat on November 29, 2018, university officials issued a shelter-in-place order and law enforcement officers were forced to search and clear every building on campus.

During the conspiracy, members placed at least 134 swatting calls to jurisdictions across the country. In addition to the swatting calls against Old Dominion University, conspirators conducted two additional swatting calls in the Eastern District of Virginia, including a call to the Alfred Street Baptist Church in November 2018, and to a former U.S. Cabinet member living in northern Virginia in January 2019.

During today’s sentencing, the Court applied both a hate crime and an official victim enhancement after finding that Kelley participated in a conspiracy that, in part, targeted individuals because of their race or status as government officials.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and James A. Dawson, Special Agent in Charge, Criminal Division, FBI Washington Field Office, made the announcement after sentencing by Senior U.S. District Judge Liam O’Grady.

Assistant U.S. Attorney Carina A. Cuellar prosecuted the case. FBI’s Memphis Field Office provided significant assistance investigating this 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. 1:20-cr-82.

NORFOLK, Va. – An Arizona man was sentenced today to 16 years in prison for his participation in a nationwide investment fraud conspiracy that cost victims over $23 million in total losses.

“This defendant made millions of dollars by deceiving innocent investors and perpetuating a scheme that defrauded vulnerable victims out of their hard-earned retirement funds,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Today’s sentence sends a strong message that anyone in the financial services industry who lies, manipulates, and steals their way to success acts at their own peril and risks substantial jail time if they do not operate their practices truthfully and with integrity.”

According to court documents, Kent Maerki, 78, of Scottsdale, the founder of Dental Support Plus Franchise, LLC, and Janus Spectrum, LLC, made a multitude of misrepresentations about those businesses in materials used to solicit investments, including during appearances on radio shows and in a presentation about investments in wireless spectrum he called “Money From Thin Air.”

As part of this scheme, Maerki and his conspirators controlled numerous entities that sold purported “franchises” and “private equity” opportunities through salesmen across the country. Through these salesmen, the defendants targeted individuals at or near retirement and made numerous material misrepresentations and omissions to sell them illiquid, highly speculative investment vehicles. Maerki, who had been barred by a federal court in 1984 from selling securities, continued to sell the investments without disclosing that the U.S. Securities and Exchange Commission, the Virginia State Corporation Commission, and the Arizona State Corporation Commission were investigating the conspirators for fraud.

Many of the victims targeted in this scheme were elderly. Unsuspecting investors cashed out 401(k) retirement plans and other retirement accounts to invest in companies founded by Maerki, without knowledge that significant portions of their money were being transferred to other companies controlled by members of the conspiracy. As a result, some individual investors—including investors who were blind, disabled, or otherwise unable to return to work—lost hundreds of thousands of dollars from their retirement savings. The total amount of victim losses from this scheme exceeded $23 million, and over $4 million of those fraudulently obtained funds went to Maerki.

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; Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); and Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.

Assistant U.S. Attorneys Melissa E. O’Boyle, Elizabeth M. Yusi, and Andrew Bosse 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. 2:19-cr-47.

NEWPORT NEWS, Va. – A previously convicted felon was sentenced today to 51 months in prison for engaging in a COVID-19 related loan fraud scheme with losses of nearly $200,000.

“During a global pandemic, the defendant took advantage of aid programs intended to provide critical relief for hardworking members of our communities impacted by the COVID-19 outbreak,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Our Office will continue to hold accountable individuals who exploit and disadvantage others in order to unlawfully enrich and advantage themselves.”

According to court documents, Joseph Cherry, 40, of Norfolk, engaged in a scheme to obtain COVID-related loan benefits through the Small Business Administration (SBA) and affiliated lenders. In addition to traditional SBA funding programs, the CARES Act, which was signed into law in March 2020, established several new temporary programs and provided for the expansion of others to address the COVID-19 outbreak. Such programs include the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL).

“Exploiting programs meant to help businesses in need during a global pandemic is appalling. Today, Cherry learned his actions have repercussions,” said Kelly R. Jackson, IRS-CI Special Agent in Charge. “We will continue to prioritize COVID-19 fraud investigations on those who essentially rob struggling businesses of the assistance they truly need.”

In March and April 2020, Cherry submitted multiple applications for PPP and EIDL loans. Cherry provided false information on the loan applications related to his claimed businesses, income, employment, and criminal record. As a result of these false applications, Cherry fraudulently obtained $196,900 in loan proceeds from the U.S. Treasury. In a brief period of time in April 2020, Cherry withdrew over $100,000 in the form of cash and a cashier’s check and made various purchases inconsistent with the purposes of the PPP and EIDL programs.

Cherry previously was convicted in the Eastern District of Virginia in 2009 for an extensive fraud, money laundering, and identity theft scheme involving losses of over $1.5 million. He has been convicted of over a dozen felony charges in federal and state courts since 2002, and he was under terms of supervision in both federal and state courts when he committed these additional fraud offenses in 2020.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Hannibal “Mike” Ware, Inspector General of the Small Business Administration; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation; and Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by Senior U.S. District Judge Rebecca Beach Smith.

Assistant U.S. Attorney Brian J. Samuels 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. 4:20-cr-27.

RICHMOND, Va. – A federal jury convicted a Richmond man today for distributing fentanyl on multiple occasions.   According to court records and evidence presented at trial, Quotez Tyveck Pair, 33, a known drug trafficker operating in Mosby Court, a Richmond public housing community, engaged in two separate distributions of fentanyl to a law enforcement cooperator.   “Fentanyl is 50 times more potent than heroin and is extremely lethal, especially when sold under false pretenses,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “This type of conduct has unfortunately helped fuel the fires of the opioid crisis. EDVA will continue to hold accountable individuals who peddle this harmful substance in our communities for profit and risk the lives of our loved ones.”  

Between October 2019 and November 2019, Drug Enforcement Administration agents utilized a cooperator to execute two controlled drug purchases from Pair. The cooperator, working with law enforcement, purchased one ounce of heroin on October 30, 2019, and two ounces of heroin on November 12, 2019, from Pair. Upon inspection, both substances purchased from Pair were found to be fentanyl.

Pair was found guilty on two counts of unlawfully distributing more than 40 grams of a mixture and substance containing fentanyl. Pair faces a mandatory minimum of five years and a maximum of 40 years in prison when sentenced on May 20. 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 Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s Washington Division, made the announcement after Senior U.S. District Robert E. Payne accepted the verdict.

Assistant U.S. Attorney Olivia L. Norman 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. 3:20-cr-3.

RICHMOND, Va. – A federal jury convicted a Richmond man today for possessing with the intent to distribute a mixture of heroin, cocaine, and fentanyl.

“Synthetic opioids, including fentanyl, unfortunately continue to play a disproportionate role in drug overdoses and overdose deaths, inflicting devastation on families across the United States and in EDVA,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We are grateful to our law enforcement partners who continue the fight to keep these lethal substances out of our communities and away from harming our loved ones.”

According to court records and evidence presented at trial, in May 2019, law enforcement initiated an investigation into certain heroin and cocaine trafficking activities in the Richmond metropolitan area. On September 26, 2019, a warrant was issued for the residence of Fernardo Lee Jordan, 67. Inside his home in Richmond, law enforcement agents discovered bags containing brown and white substances and $18,560 in U.S. currency. Agents also found a scale and packaging material, among other items associated with drug trafficking. The substances were later determined to be over a quarter of a kilogram of a mixture and substance containing heroin and fentanyl, over a quarter of a kilogram of cocaine powder, and several ounces of heroin, with a combined street value of over $40,000.

Jordan was convicted of possession with the intent to distribute controlled substances including over 100 grams of a mixture of heroin and fentanyl, a quantity of heroin, and a quantity of cocaine hydrochloride. Jordan faces a mandatory minimum penalty of five years in prison and a maximum of 40 years in prison when sentenced on May 20. 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; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s Washington Division; and Colonel Jeffrey S. Katz, Chesterfield County Police Department, made the announcement after Senior U.S. District Judge Robert E. Payne accepted the verdict.

Assistant U.S. Attorney Olivia L. Norman 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. 3:20-cr-31.

RICHMOND, Va. – A Richmond man was sentenced today to 97 months in prison for his role in an investment scheme that defrauded investors of $5.7 million.

According to court documents and evidence presented at trial, James Michael Johnson, 69, participated in a worldwide scheme through Chimera Group Ltd., a purported investment company based out of the United Kingdom. Johnson was convicted by a federal jury of conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering on October 30, 2020, after a four-day trial.

“For more than four years, the defendant and his co-conspirators stole over $5 million from victim investors, which included individuals, startup business entities, and a volunteer fire department,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Thanks to the outstanding work of the trial team and our law enforcement partners, the defendant has been held accountable for inflicting significant economic harm on his victims and abusing their trust.”

From July 2014 to March 2019, the fraud operated as an advance-fee scheme in which the defendants acted as promoters who promised to pay the victims a sum of money at a later date, in exchange for an upfront advanced payment. Among other misrepresentations, Johnson and his co-conspirators told potential victims that their principal payments would be protected based on letters of credit and other documents that purported to be from a large financial institution. However, these letters were fabricated. The evidence also showed that Johnson and his co-conspirators used escrow attorneys, who were themselves part of the scheme, in order to give the victims the impression that their money would remain secure until the conspirators’ promises had been kept.

Johnson and his co-conspirators stole approximately $5.7 million from their victims. Co-conspirator James Leonard Smith, 64, of Midlothian, Virginia, is scheduled to be sentenced on May 27, and Stuart Jay Anderson, 54, of Alisa Viejo, California, was sentenced to four years in prison on December 3, 2020. Brian Michael Bridge, 46, of London, England, a fugitive, was also charged in the superseding indictment and is presumed innocent unless and until proven guilty.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Nicholas L. McQuaid, Acting Assistant Attorney General of the Justice Department’s Criminal Division; Delany De Leon-Colón, Inspector in Charge of the U.S. Postal Inspection Service’s Criminal Investigations Group; Christopher R. Derrickson, Acting Special Agent in Charge of the FBI’s Richmond Field Office; and Judith Williams Jagdmann, Chair of the Virginia State Corporation Commission, made the announcement.

Assistant U.S. Attorney Michael C. Moore and Trial Attorneys Christopher Jackson and Vasanth Sridharan of the Justice Department’s Fraud 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. 3:19-cr-117.

A Virginia man was sentenced today to over eight years in prison for his role in an investment-fraud scheme in which he and his co-conspirators stole at least $5.7 million from victim investors.

James Michael Johnson, 69, of Richmond, was convicted by a federal jury of conspiracy to commit wire fraud, wire fraud, and money laundering on Oct. 30, 2020, after a four-day trial.

According to the evidence presented at trial, Johnson participated in a worldwide scheme through Chimera Group Ltd., a purported investment company based out of the United Kingdom. The fraud operated as an advance-fee scheme in which the defendants acted as promoters who promised to pay the victims a sum of money at a later date in exchange for an up-front payment. Among other misrepresentations, Johnson and his co-conspirators told potential victims that their principal payments would be protected based on letters of credit and other documents that purported to be from a large financial institution. However, these documents were fabricated. The evidence also showed that Johnson and his co-conspirators used escrow attorneys, who were themselves part of the scheme, in order to give the victims the impression that their money would remain secure until the defendants’ promises had been kept. Johnson and his co-conspirators stole at least $5 million from their victims.

Co-defendant James Leonard Smith, 64, of Midlothian, Virginia, is scheduled to be sentenced on May 27, 2021. Co-defendant Brian Michael Bridge, 46, of London, England, a fugitive, was also charged in the superseding indictment.

Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Raj Parekh of the Eastern District of Virginia; Inspector in Charge Delany De León-Colón of the U.S. Postal Inspection Service Criminal Investigations Group; Acting Special Agent in Charge Christopher R. Derrickson of the FBI’s Richmond Field Office; and Chair of the Virginia State Corporation Commission Judith Williams Jagdmann made the announcement.

The U.S. Postal Inspection Service, FBI’s Richmond Field Office, and Virginia State Corporation Commission investigated the case.

Trial Attorneys Christopher Jackson and Vasanth Sridharan of the Justice Department’s Fraud Section and Assistant U.S. Attorney Michael C. Moore of the Eastern District of Virginia prosecuted the case.

NEWPORT NEWS, Va. – A federal jury convicted a Newport News man today on 20 counts relating to his participation during a series of more than 12 robberies of gas stations, convenience stores, and fast food restaurants stretching from Fredericksburg to Virginia Beach.

“As demonstrated during the trial, this defendant served as the mastermind of an armed robbery spree that was chilling in its nature and scope,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Today’s verdict sends a clear message that our Office, along with its law enforcement partners, will work tirelessly to seek justice on behalf of victims and hold accountable individuals who spread fear in our communities.”

According to court records and evidence presented at trial, between 2013 and 2014, Christopher Ray Robertson, 36, served as the mastermind behind a series of retail business robberies in the Eastern District of Virginia. In the fall of 2013, Robertson enlisted the help of convicted felon, Michael Ellison, 30, Newport News, to commit multiple robberies of retail businesses in central and southeast Virginia. Robertson selected the businesses, directed Ellison’s actions, and served as the lookout during the robberies. After robbing or attempting to rob four businesses in Fredericksburg and Spotsylvania from September 24 to October 13, 2013, Ellison and Robertson parted company for approximately one year to evade law enforcement detection.

Between November 2013 and the fall of 2014, Robertson was living in Durham, North Carolina, where he met Aquilla Jones, 31, Durham, North Carolina. Robertson and Jones began a relationship before moving back to Newport News in 2014. Robertson and Ellison then reconnected in Newport News and Robertson suggested they restart robbing businesses. In December 2014, Robertson, Jones, Ellison, and a juvenile robbed or attempted to rob eight businesses using a firearm provided by Robertson. Robertson provided instructions to his co-conspirators during these robberies, and he and Jones served as lookouts while Ellison and the juvenile entered the businesses wearing masks.

On December 13, 2014, during a Subway restaurant robbery, bystanders in the parking lot identified the vehicle driven by Ellison. This ultimately led to Ellison being arrested for the robbery in Spotsylvania County. Law enforcement identified Ellison as being associated with the robberies and further identified Robertson as a co-conspirator. Phone analysis showed Robertson’s phone in the immediate vicinity of all the robberies committed in 2014.

Jones and Ellison both pleaded guilty on February 6, 2019, and September 11, 2017, respectively, for their roles in the robberies.

Robertson was convicted of conspiracy to commit robbery, interference with commerce by robbery, and brandishing a firearm during a crime of violence. He faces a mandatory minimum of 42 years in prison and a maximum of life when sentenced on July 20. 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 verdict.

Assistant U.S. Attorneys Eric M. Hurt and Peter G. Osyf 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. 4:18-cr-27.

NEWPORT NEWS, Va. – A federal grand jury returned an indictment yesterday charging four Ecuadorian nationals after they were intercepted on the Pacific Ocean while traveling on unflagged vessels with over 700 kilograms of cocaine.

According to the indictment and to a criminal complaint filed earlier this year, Julio Luis Rosado Benitez, 47, Maunel Alexi Quijije Mero, 26, Oscar Arcenio Sanchez Garcia, 26, and Kevin Antonio Franco Bonilla, 24, were found traveling on unflagged go-fast vessels several hundred nautical miles off the coast of Mexico and Guatemala. A U.S. Coast Guard cutter intercepted the boats, and boarding teams recovered a total of over 700 kilograms of cocaine.

All four defendants are charged with possession with the intent to distribute more than five kilograms of cocaine onboard a vessel without nationality. If convicted, they face a mandatory minimum sentence of ten years and a maximum sentence of life 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; Marty J. Martinez, Special Agent in Charge, Coast Guard Investigative Service, Chesapeake Region; and Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s Washington Division, made the announcement.

Assistant U.S. Attorneys Eric M. Hurt and 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. 4:21-cr-4.

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

A federal jury convicted a Virginia man today for downloading images and videos depicting children as young as four years old being sexually abused and for utilizing the Darknet to solicit and promote child pornography.

According to court documents and evidence presented at trial, Christopher Sueiro, 39, of Fairfax, used a peer-to-peer network to download images of child sexual abuse. Sueiro was also a member of a Darknet hidden service website dedicated to trafficking in child sexual abuse material of preteen boys, where he made posts promoting and soliciting images and videos of child sexual abuse and attempted to receive it from other users of the website. Sueiro’s electronic devices included documents describing graphic sexual abuse of children and a guide to how to find child pornography online. He downloaded images and videos of child sexual abuse repeatedly over the course of at least four years, amassing thousands of images and videos.

Sueiro was convicted of four counts: receipt; attempted receipt; possession; and solicitation of child pornography. He is scheduled to be sentenced on June 16, 2021, and faces a mandatory minimum penalty of five years in prison. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia; Special Agent in Charge Raymond Villanueva of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington, D.C.; and Colonel Erin Schaible, Chief of the City of Fairfax Police Department made the announcement. 

HSI and the City of Fairfax Police Department investigated the case, with significant assistance from the High Technology Investigative Unit (HTIU) of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).

CEOS Trial Attorney James E. Burke IV and Assistant U.S. Attorney Nathaniel Smith III of the U.S. Attorney’s Office for the Eastern District of Virginia are prosecuting the case.

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

ALEXANDRIA, Va. – A federal jury convicted a Fairfax man today for downloading images and videos depicting children as young as four years old being sexually abused and for utilizing the Darknet to solicit and promote child pornography.

“The evidence admitted at trial demonstrated that thousands of images and videos of child sexual abuse were found on the defendant's electronic devices,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “The trafficking of child pornography causes incalculable and irreparable harm to society’s most vulnerable victims, which often continues long after the abuse has occurred. Thanks to the painstaking efforts of our law enforcement partners and prosecutors on this case, the defendant has been held accountable by a jury of his peers for his heinous criminal conduct.”

According to court records and evidence presented at trial, Christopher Sueiro, 39, used a peer-to-peer network to download images and videos of child sexual abuse. Sueiro also was a member of a Darknet hidden service website dedicated to trafficking in child sexual abuse material of preteen boys, where he made posts promoting and soliciting images and videos of child sexual abuse and attempted to receive it from other users of the website. Sueiro’s electronic devices included documents describing graphic sexual abuse of children and a guide to finding child pornography online. The evidence showed that he downloaded images of child sexual abuse repeatedly over the course of at least four years, amassing thousands of images and videos.

Sueiro was convicted of receipt of child pornography, possession of child pornography, attempted receipt of child pornography, and promotion and solicitation of child pornography. Sueiro faces a mandatory minimum sentence of five years in prison and a maximum penalty of 20 years for each count of conviction when sentenced on June 16. 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.

Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia; Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Special Agent in Charge Raymond Villanueva of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington, D.C.; and Colonel Erin Schaible, Chief of the City of Fairfax Police Department, made the announcement after U.S. District Judge Rossie D. Alston Jr. accepted the verdict.

HSI and the City of Fairfax Police Department investigated the case, with significant assistance from the High Technology Investigative Unit (HTIU) of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).

Assistant U.S. Attorney Nathaniel Smith III and CEOS Trial Attorney James E. Burke IV are prosecuting 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 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. 1:17-cr-284.

ALEXANDRIA, Va. – A former U.S. government official agreed to pay $33,000 to resolve allegations that she had an improper conflict of interest with a company while she served as a division chief at U.S. Citizenship and Immigration Services (USCIS).

According to allegations of the United States, Sarah Fahden, of Fort Washington, Maryland, engaged in employment negotiations with eGlobaltech (“eGT”), a company that had a contract with USCIS, while Fahden was employed as the Division Chief of USCIS’s Identity, Records and National Security Division. While negotiating employment with eGT and after agreeing to an employment arrangement with eGT, Fahden is alleged to have participated personally and substantially on a modification to a contract between USCIS and eGT that added additional funding and positions for eGT on the contract. That contract modification allegedly was under Fahden’s official responsibility during her last year at USCIS.

After leaving her position at USCIS in July 2018 and becoming employed as a subcontractor to eGT, Fahden communicated with USCIS officials with the alleged intent of influencing those officials to approve Fahden and her colleague to fill contractor positions that were added through the modification of the USCIS contract.

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 and the Office of Inspector General for the Department of Homeland Security’s Major Frauds & Corruption Unit.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Joseph V. Cuffari, Inspector General for the Department of Homeland Security, made the announcement. The matter was investigated by Assistant U.S. Attorney Krista Anderson.

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

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 Pittsburgh man was sentenced today to 126 months in prison for conducting sexually explicit online communications and traveling to Virginia in an attempt to engage in a sexual relationship with a fictitious 10-year-old girl.

According to court documents, in November 2019, Brian Kosanovich, 58, then a firefighter in Pittsburgh, responded to a profile posted by an FBI undercover officer on a website that hosts a network of members interested in alternative forms of sexual relationships, including a variety of fetishes. The undercover officer’s profile indicated that she was a single mother with a 10-year-old daughter.

After establishing contact on the website, Kosanovich and the undercover officer began communicating via an instant messaging application. Kosanovich and the undercover officer engaged in extensive conversations of a sexually explicit nature for several months, much of which focused on Kosanovich engaging in a sexual relationship with who he believed to be a 10-year-old girl, as well as the mother. Over the period of the investigation, Kosanovich sent the undercover officer nude pictures and a prepaid credit card, so that the mother could buy certain items to use with the daughter.

Ultimately, in February 2020, Kosanovich drove from Pittsburgh to Richmond for the stated purpose of engaging in a sexual relationship with the mother and daughter, and he was arrested by FBI officials upon his arrival in Midlothian.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Christopher R. Derrickson, Acting Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck.

Assistant U.S. Attorney Brian R. Hood 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. 3:20-cr-103.

ALEXANDRIA, Va. – A federal grand jury returned an indictment today charging a Herndon man with failing to file Reports of Foreign Bank and Financial Accounts (FBARs) and filing false documents with the IRS.

According to the indictment, Azizur Rahman, 70, had a financial interest in and signature authority over more than 20 foreign financial accounts, including accounts held in Switzerland, the United Kingdom, the Republic of Singapore, and Bangladesh. For the years 2010 through 2016, Rahman allegedly did not disclose his interest in all of his financial accounts on annual FBARs, as required by law. Rahman also allegedly filed false individual tax returns for the tax years 2010 through 2016 that did not report to the IRS all of his foreign bank accounts and income.

Rahman is also charged with filing a false “Streamlined Submission” in conjunction with the IRS Streamlined Domestic Offshore Procedures. Those procedures allowed eligible taxpayers residing within the United States, who failed to report gross income from foreign financial accounts on prior tax returns, failed to pay taxes on that gross income, or who failed to submit an FBAR disclosing foreign financial accounts, to voluntarily disclose their conduct to the IRS and to pay a reduced penalty if their conduct was non-willful. The indictment alleges that Rahman’s Streamlined Submission did not truthfully disclose all the foreign bank accounts in which he had an interest, and falsely claimed that his failure to report all income, pay all tax, and submit all required information returns, such as FBARs, was non-willful.

If convicted, Rahman faces a maximum sentence of three years in prison for each of the counts related to filing false tax documents. Rahman also faces a maximum sentence of five years in prison for each count relating to his failure to file an FBAR or filing a false FBAR. 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; Stuart M. Goldberg, Acting Deputy Assistant Attorney General of the Justice Department's Tax Division; and Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation, made the announcement.

Assistant U.S. Attorney Jamar Walker and Trial Attorneys Sean Beaty and Brian Flanagan of the Justice Department’s 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. 1:21-cr-22.

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

A federal grand jury in Alexandria, Virginia, returned an indictment on March 3, 2021, charging a Virginia man with failing to file Reports of Foreign Bank and Financial Accounts (FBARs) and filing false documents with the IRS.

According to the indictment, Azizur Rahman of Herndon, had a financial interest in and signature authority over more than 20 foreign financial accounts, including accounts held in Switzerland, the United Kingdom, the Republic of Singapore, and Bangladesh. From 2010 through 2016, Rahman allegedly did not disclose his interest in all of his financial accounts on annual FBARs, as required by law. Rahman also allegedly filed false individual tax returns for the tax years 2010 through 2016 that did not report to the IRS all of his foreign bank accounts and income.

Rahman is also charged with filing a false “Streamlined Submission” in conjunction with the IRS Streamlined Domestic Offshore Procedures. Those procedures allowed eligible taxpayers residing within the United States, who failed to report gross income from foreign financial accounts on prior tax returns, failed to pay taxes on that gross income, or who failed to submit an FBAR disclosing foreign financial accounts, to voluntarily disclose their conduct to the IRS and to pay a reduced penalty if their conduct was non-willful. The indictment alleges that Rahman’s Streamlined Submission did not truthfully disclose all the foreign bank accounts in which he had an interest, and falsely claimed that his failure to report all income, pay all tax, and submit all required information returns, such as FBARs, was non-willful. 

If convicted, Rahman faces a maximum sentence of three years in prison for each of the counts related to filing false tax documents. Rahman also faces a maximum sentence of five years in prison for each count relating to his failure to file an FBAR or filing a false FBAR.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia, and Special Agent in Charge Kelly R. Jackson of IRS-Criminal Investigation made the announcement.

IRS-Criminal Investigation conducted the investigation, and Assistant U.S. Attorney Jamar Walker and Trial Attorneys Sean Beaty and Brian Flanagan of the Tax Division are prosecuting the case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.

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

ALEXANDRIA, Va. – During this year’s Women’s History Month, the U.S. Attorney’s Office for the Eastern District of Virginia (EDVA) honors the achievements and invaluable contributions women have made over the course of American history and today.

“Women have made, and continue to make, immeasurable contributions to our Office,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Their unparalleled leadership and dedication have helped secure the safety of our Nation and have promoted equal justice for all. Our Office recognizes that these changes did not take place overnight, and we are deeply committed to ensuring that all participants in the legal process, no matter their race, gender, religion, national origin, sexual orientation, gender identity, disability, or citizenship, have equal opportunity and equal protection under the law. As a part of that commitment, EDVA is dedicated to furthering our collective efforts to promote diversity and inclusion in all forms through our hiring, advancement, and community outreach practices.”

During this year’s Women’s History Month celebration, EDVA will host multiple events, including a virtual discussion with Judge Cheryl Ann Krause of the U.S. Court of Appeals for the Third Circuit, and a virtual discussion with Principal Deputy Assistant Attorney General Pamela Karlan of the Justice Department’s Civil Rights Division.

Women’s History Month had its origins as a national celebration with a 1987 presidential proclamation. Since 1995, Presidents have issued a series of annual proclamations designating the month of March as “Women’s History Month.” These proclamations celebrate the achievements women have made over the course of American history in a variety of fields. The National Women’s History Alliance extended the theme, “Valiant Women of the Vote: Refusing to Be Silenced,” for the 2021 celebration.

In recent decades, women have held senior leadership positions in the Department of Justice, including as Attorney General, Deputy Attorney General, and throughout the country’s 94 U.S. Attorneys’ Offices—including EDVA.

Women serve an essential role in and contribute to every aspect of the Eastern District of Virginia’s mission. Over 60% of the more than 300 total staff members in EDVA, to include prosecutors, civil litigators, and support personnel, are women.

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 Fayetteville, North Carolina man was sentenced today to 30 months in prison for participating in a scheme to steal, alter, and cash business checks from Richmond-area mailboxes.

Sammy Marquelle Bethea, 25, was convicted of conspiracy to commit mail and bank fraud following a four-day jury trial in October 2020. According to the government’s evidence at trial, in 2018, Bethea and his cousin, Lareese Mallety, 27, repeatedly traveled from their North Carolina homes to the Richmond area to steal business checks from mailboxes in and around industrial parks. The cousins would manually alter the checks using razorblades and a typewriter, after which they would add the name of a recruited homeless or indigent individual who would walk the check into a local Virginia bank to obtain cash. In 2018, members of the conspiracy successfully cashed more than $30,000 worth of stolen and counterfeit checks.

Law enforcement uncovered the scheme in October 2018, when Bethea and Mallety's vehicle was stopped by the Virginia State Police while traveling to Richmond. At that time, the officers discovered that Bethea and Mallety were in possession of a pry bar, typewriter, and razorblades, as well as stolen packages and nearly 50 checks stolen from more than 40 businesses worth over $120,000.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Colonel Gary T. Settle, Superintendent of Virginia State Police; and Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by Senior U.S. District Judge Robert E. Payne.

Assistant U.S. Attorneys Thomas A. Garnett and Kevin Elliker 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-77.

NEWPORT NEWS, Va. – Two Norfolk men pleaded guilty today to conspiracy to commit wire fraud and aggravated identity theft as part of a scheme to purchase alcohol for resale from Virginia Alcoholic Beverage Control Authority (ABC) stores with stolen credit, debit, and pre-paid gift card numbers.

According to court documents, Dion Melton, 28, and Dominic Smith, 29, joined with two other men to defraud Virginia ABC stores by using credit, debit, and pre-paid gift cards re-encoded with the stolen financial information of identity theft victims. The conspirators obtained the stolen credit and debit card numbers by purchasing the numbers online, among other means. Investigators have identified 31 direct victims of identity theft from Smith’s role in the scheme and 18 direct victims of identity theft from Melton’s role in the scheme. There are at least 82 victims of the broader conspiracy.

Melton and Smith are scheduled to be sentenced on June 25. The conspiracy to commit wire fraud offense carries a maximum sentence of 30 years in prison, and the aggravated identity theft offense carries a mandatory consecutive term of two years in prison. Their codefendant, Tyrell Jackson, previously pleaded guilty to the same charges on December 9, 2020, and is scheduled to be sentenced on March 24. 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; Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; Steve R. Drew, Chief of Newport News Police, and Tom Kirby, Chief of Virginia ABC’s Bureau of Law Enforcement, made the announcement after Senior U.S. District Judge Henry E. Hudson accepted the pleas.

Assistant U.S. Attorney Mack Coleman 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. 4:20-cr-45.

ALEXANDRIA, Va. – An Arlington man was sentenced today to 151 months in prison for participating in a conspiracy to distribute over seven kilograms of fentanyl.

According to court documents, Cornelius Frazier, 32, and others would press illicit pills containing fentanyl, among other substances, to resemble prescription pills such as Oxycodone, for illegal distribution and financial gain.

“As this case demonstrates, fentanyl is not only extremely dangerous because of its potency, but also because it may be hidden in counterfeit prescription pills,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We are grateful to the numerous law enforcement agencies that worked with our Office on this investigation and prevented kilograms of fentanyl from poisoning our communities and harming our loved ones. Their tireless efforts are saving lives.”

A June 1, 2020 court-authorized search of Frazier’s residence resulted in the seizure of a blender containing approximately one kilogram of a mixture and substance containing fentanyl. Law enforcement also seized paraphernalia associated with prescription drug trafficking, including a hydraulic jack, two dust collectors with a large amount of residue, an inductor motor, various cutting agents, and pill presses with several insets containing markings consistent with those found on controlled prescription painkillers such as Oxycodone. In addition, law enforcement seized approximately $34,828 in U.S. currency and a loaded AK-47 with thirty bullets in the magazine. Additional ammunition for this semi-automatic weapon and other firearms was also found in the residence.

Additionally, a June 1, 2020 court-authorized search of one of Frazier’s vehicles resulted in the seizure of two brick-like packages weighing over 1.6 kilograms, which tested positive for the presence of fentanyl. The vehicle also contained 5,307 pills, which tested positive for fentanyl and weighed approximately 4.4 kilograms. In another vehicle owned by Frazier, two machines used to create kilogram packages of controlled substances were seized pursuant to a search warrant.

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; Mary Gavin, Chief of Falls Church Police; Acting Chief Andy Penn, Arlington County Chief of Police; Michael L. Brown, Alexandria Chief of Police; and David Huchler, Chief of Police, Metropolitan Washington Airports Authority Police Department, made the announcement after sentencing by U.S. District Judge Rossie D. Alston, Jr.

Assistant U.S. Attorney Bibeane Metsch and Special Assistant U.S. Attorney Rachel Roberts 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. 1:20-cr-207.

NORFOLK, Va. – A Virginia Beach man was sentenced today to two years in prison for aiding and assisting the filing of fraudulent and false tax returns.

According to court documents, from 2013 to 2016, Ryan Dalletezze, 42, prepared tax returns through a Virginia Beach company, D&D Tax Services LLC. Dalletezze was a “ghost preparer,” in that he received money as a paid preparer but failed to report or identify himself on his customers’ returns. Dalletezze routinely claimed exemptions on his customers’ returns that were false, such as education and business expenses, energy credits, and business losses.

Dalletezze’s customers had no knowledge of the fraud. Dalletezze personally received the resulting refunds and kept substantial portions for himself. The filing of these false and fraudulent returns resulted in a tax loss of over $291,000.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation, made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar.

Assistant U.S. Attorney Elizabeth M. Yusi 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-12.

RICHMOND, Va. – Two Indian nationals pleaded guilty today to conspiracy charges relating to their involvement in an overseas-based robocalls scheme that defrauded thousands of victims out of millions of dollars.

“Pradipsinh Parmar crisscrossed the United States to collect nearly $6 million that was stolen from more than 4,000 victims in an international robocalls scam,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “By falsely impersonating representatives of the FBI, DEA, Social Security Administration, and other government agencies, members of this conspiracy preyed on thousands of unsuspecting victims, many of whom were elderly. This Office is committed to working with our law enforcement partners to combat international financial fraud and elder abuse schemes.”

According to court documents, Pradipsinh Parmar, 41, collected money on behalf of the robocall conspiracy that victims had sent either by a parcel delivery carrier or through a wire service. Upon receiving the victims’ money, Parmar deposited these funds into bank accounts as directed by the conspiracy’s leader, Shehzadkhan Pathan, 39, who previously pleaded guilty on January 15.

Pathan operated a call center in Ahmedabad, India, from which automated robocalls were made to victims in the United States. After establishing contact with victims through these automated calls, Pathan and other “closers” at his call center would coerce, cajole, and trick victims to send bulk cash through physical shipments and electronic money transfers.

Pathan and his conspirators used a variety of schemes to convince victims to send money, including impersonating law enforcement officials from the FBI and DEA, and representatives of other government agencies, such as the Social Security Administration, to threaten victims with severe legal and financial consequences. Conspirators also convinced victims to send money via wire transfer as initial installments for falsely promised loans. A significant number of victims who were tricked or coerced into sending bulk cash were elderly.

As part of his guilty plea, Parmar admitted that over a two-year period from March 2017 to April 2019, he traveled to 30 states and collected at least 4,358 wire transfers sent by victims via Western Union, MoneyGram, and Walmart2Walmart, with losses totaling at least $4,312,585. Additionally, Parmar, working for Pathan and another individual, received and attempted to receive at least 91 packages of bulk cash sent by victims from several states, including Virginia, via FedEx, UPS, or USPS, totaling at least $1,593,591. Parmar also received at least 549 counterfeit identification documents sent to him by Pathan for his use in retrieving these packages and wires sent by victims.

In addition to Parmar’s guilty plea today, Sumer Patel, 37, also pleaded guilty for his role in working for Pathan. As reflected in court documents accompanying his guilty plea, from October 2018 to March 2019, Patel retrieved over 250 individual wire transfers from 230 individual victims on behalf of Pathan. These wires totaled $219,520.98. Patel received these wires in the states of Virginia, Connecticut, and Rhode Island, and he deposited the funds as instructed by Pathan. While living in Chesterfield County, Virginia, Patel also received eight packages of cash sent by victims via FedEx. Four of the eight FedEx packages are known to have contained a total of $56,200 in cash.

Parmar and Patel are scheduled to be sentenced on June 18, 2021. Each defendant faces a maximum sentence of 20 years in prison for the conspiracy count, and Parmar faces an additional mandatory minimum sentence of two years on the aggravated identity theft count. 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 James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division, made the announcement after Senior U.S. District Judge Henry E. Hudson accepted the plea.

Assistant U.S. Attorneys Brian Hood and Kaitlin G. Cooke 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. 3:19-cr-160.

RICHMOND, Va. – A former corporate executive of a construction management company was sentenced today to 27 months in prison for his role in a corporate accounting scheme that concealed millions of dollars in debt owed by the company.

“Over a five-year period, Patrick Lindsey served an integral role in a large-scale corporate accounting fraud scheme designed to conceal the fact that MGT Construction was more than $20 million in debt,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “That deceit not only maintained the defendant’s job and padded his annual compensation package, but it also proved devastating to the individuals who worked on MGT Construction projects and were left holding the bag after the fraud scheme was uncovered and the company subsequently collapsed. This Office is committed to working with our law enforcement partners to combat corporate malfeasance and hold accountable executives who manipulate others for personal gain.”

According to court documents, Patrick Lindsey, 43, of Midlothian, was the Vice President of Preconstruction Services at MGT Construction, a Richmond-based construction company offering preconstruction planning and construction management services. From 2011 through November 2016, MGT Construction engaged in a fraudulent accounting scheme that sought to conceal MGT’s true financial position through job-cost manipulations within the company’s accounting software system.

Lindsey had primary day-to-day management of the accounting scheme, which involved the regular movement of job-cost invoices from nearly finished projects to more recent construction projects. This cost-shifting falsely inflated profit margins and concealed losses, which generated a wholly inaccurate picture of MGT’s profitability. MGT and its parent company submitted the products of these fraudulent accounting manipulations as part of MGT’s application packages to banks and insurance companies for lines of credit and bonding coverage.

During the conspiracy, Lindsey moved or deleted thousands of job cost invoices, concealing the fact that, by the time the scheme was uncovered in November 2016, MGT Construction was over $20 million in debt. When the accounting fraud was exposed, MGT Construction owed millions of dollars in outstanding invoices that it could not pay to dozens of contractors, subcontractors, and vendors who had provided their services or products to MGT Construction. As a result, MGT filed for Chapter 7 bankruptcy in early 2018.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Christopher R. Derrickson, Acting Special Agent in Charge of the FBI’s Richmond Field Office; Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); and Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck.

Assistant U.S. Attorney Thomas A. Garnett 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. 3:20-cr-22.

NORFOLK, Va. – A Stratford, New Jersey man was sentenced today to two years in prison for transporting two women across state lines for the purpose of engaging in prostitution.

According to court documents, in April 2020, Rockwell Woodrow Pohlig, 30, transported two women to the Eastern District of Virginia, after having convinced one of the women that she was in a relationship with him and that they would open a business together. Pohlig also told the other woman that she was indebted to Pohlig because he had recently paid the funeral expenses for her family member. Once the women were in Virginia, Pohlig told them that they needed to earn money by engaging in commercial sex, and he directed one of them to advertise online their services for prostitution. Pohlig then paid for a third woman to fly to Virginia to engage in prostitution.

At the time of this conduct, Pohlig was being supervised in New Jersey for an unrelated offense.

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 (ICE) Homeland Security Investigations (HSI) Washington, D.C.; and Paul Nudigate, Chief of Virginia Beach Police, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.

Assistant U.S. Attorney Megan Montoya 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-63.

ALEXANDRIA, Va. – A Virginia man who was dishonorably discharged from the U.S. Air Force was sentenced today to seven years in prison for receiving images of child sexual abuse and failing to maintain his sex offender registration as required.

“Bryson Miller not only accessed and retained thousands of videos and images of child sexual abuse from the dark web, but he also failed to update his sex offender registration while employed in a position in which he interacted with children,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Protecting society’s most vulnerable and innocent members—including children—is a top priority for EDVA and the Department of Justice.”

According to court documents, Bryson McNeal Miller, 40, of Alexandria, received a substantial amount of child pornography over the course of several years by accessing sites on the “dark web.” Miller retained thousands of these videos and images of child sexual abuse on various electronic devices in his possession. Additionally, Miller failed to maintain an accurate record of his employment with the Virginia sex offender registry, in that Miller failed to inform authorities that he was employed at a northern Virginia martial arts studio where some of his students were children. Miller was required to register as a sex offender due to a 2006 conviction for possession of child pornography while Miller was serving in the U.S. Air Force.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division, made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton.

Assistant U.S. Attorney Seth Schlessinger prosecuted the case.

The FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force, composed of FBI agents and local, state, and federal partners, investigated 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. 1:20-cr-200.

RICHMOND, Va. – A North Carolina man, formerly employed by the Bureau of Prisons at Federal Correctional Institution (FCI) Petersburg, pleaded guilty today to taking bribes to allow for the introduction of contraband into the prison. Today’s guilty plea follows a former correctional officer’s plea last week for taking bribes as part of the same scheme.

“Stephen Taylor and Shanice Bullock flagrantly violated their positions of trust as federal prison officials by engaging in a bribery scheme inside FCI Petersburg instead of safeguarding the security of the facility and protecting its inmates,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Our Office will continue to seek equal justice under the law and hold accountable government officials who corrupt their oaths and betray the public’s trust.”

According to court documents, Stephen Taylor, 48, then a case manager at FCI Petersburg, received over $17,000 in Walmart-2-Walmart transfers from an inmate’s mother from March 2018 to March 2019. In return, Taylor permitted the introduction of contraband items into the prison—namely Suboxone, marijuana, cellular telephones, and tobacco. In addition, Taylor received contraband and sums of cash from the inmate’s girlfriend.

In addition to Taylor, former correctional officer Shanice Bullock, 28, of South Hill, Va., pleaded guilty on February 9 for her role in the same prison bribery scheme. Specifically, Bullock took bribes from the same inmate’s mother to facilitate the introduction of Suboxone, marijuana, heroin, cigarettes, and cellular telephones into FCI Petersburg.

Taylor is scheduled to be sentenced on August 6, and he faces a maximum penalty of 15 years in prison. Bullock will be sentenced on August 11 and faces a maximum penalty of 15 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; Christopher R. Derrickson, Acting Special Agent in Charge of the FBI’s Richmond Field Office; and Russell W. Cunningham, Special Agent in Charge, Department of Justice Office of the Inspector General, Washington Field Office, made the announcement after U.S. District Judge David J. Novak accepted the plea.

Assistant U.S. Attorneys Kenneth Simon Jr. and Michael C. Moore 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. 3:20-cr-125.

NEWPORT NEWS, Va. – A Nigerian national was sentenced today to 10 years in prison for his involvement in a computer-based intrusion fraud scheme that caused approximately $11 million in known losses to his victims.

“Through subterfuge and impersonation, Obinwanne Okeke engaged in a multi-year global business email and computer hacking scheme that caused a staggering $11 million in losses to his victims,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Today’s sentence further demonstrates EDVA’s and FBI’s worldwide reach in vigorously pursuing justice on behalf of American victims and others and holding international cybercriminals accountable, no matter where they commit their crimes.”

According to court documents, Obinwanne Okeke, 33, operated a group of companies known as the Invictus Group based in Nigeria and elsewhere. From approximately 2015 to 2019, Okeke and others engaged in a conspiracy to conduct various computer-based frauds. The conspirators obtained and compiled the credentials of hundreds of victims, including victims in the Eastern District of Virginia.

As part of the scheme, Okeke and other conspirators engaged in an email compromise scheme targeting Unatrac Holding Limited, the export sales office for Caterpillar heavy industrial and farm equipment. In April 2018, a Unatrac executive fell prey to a phishing email that allowed conspirators to capture login credentials. The conspirators sent fraudulent wire transfer requests and attached fake invoices. Okeke participated in the effort to victimize Unatrac through fraudulent wire transfers totaling nearly $11 million, which was transferred overseas. Additionally, Okeke engaged in other forms of cyberfraud, including sending phishing emails to capture email credentials, creating fraudulent web pages, and causing other losses to numerous victims.

“The FBI will not allow cyber criminals free reign in the digital world to prey on U.S. companies,” said Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office. “This sentencing demonstrates the FBI’s commitment to working with our partners at the Department of Justice and our foreign counterparts to locate cyber criminals across the globe and bring them to the United States to be held accountable.”

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 Chief U.S. District Judge Rebecca Beach Smith.

Assistant U.S. Attorney Brian Samuels 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. 4:19-cr-84.

RICHMOND, Va. – A Glen Allen man pleaded guilty today to wire fraud, engaging in an unlawful monetary transaction using fraud proceeds, and receipt of child pornography.

“Gordon Miller’s extensive fraudulent scheme exacted a heavy financial and emotional toll on his victims,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “In addition, Miller undermined the federal procurement process, and even more appalling, he further victimized the vulnerable children depicted in hundreds of images and videos of child sexual abuse by inexcusably receiving those materials online and collecting them at his home.”

According to court documents, Gordon G. Miller III, 56, was the sole owner and operator of G3 Systems, Inc., a software engineering company, and G3i Ventures, LLC, purportedly a venture capital company. Starting around 2017, Miller began to engage in overlapping fraud schemes to prevent his companies from going out of business and to maintain his lifestyle in the absence of legitimate income.

One scheme involved the solicitation of contacts in an online question-and-answer forum, where Miller falsely represented himself as an entrepreneur with a significant net worth, multiple advanced degrees, and expertise investing in technology companies. Between 2017 and 2018, through various misrepresentations, Miller fraudulently obtained approximately $1 million from at least ten individuals through this scheme.

Another fraud entailed the diversion of a federal subcontract to G3 Systems, which he obtained using misrepresentations regarding his educational experience. Once he secured the subcontract, Miller submitted fraudulent timesheets and invoices to obtain more than $300,000 in payments from the prime contractor. Between 2018 and 2019, Miller took checks he received from the contractor to a check-cashing store in Richmond to convert the proceeds of the contract-fraud scheme to cash.

During the investigation of the above-described fraud schemes, federal agents obtained a search warrant for Miller’s residence. During the preliminary examination of devices seized from Miller’s home, agents discovered child sexual abuse material. After the execution of a search warrant targeting such material, agents discovered more than 700 images or videos constituting child pornography, including images or videos Miller obtained between August 2017 and September 2020.

Miller is scheduled to be sentenced on June 14. For the wire fraud and unlawful monetary transaction offenses, he faces maximum penalties of 20 years and 10 years in prison, respectively. For the receipt of child pornography offense, he faces a five-year mandatory minimum and a maximum term 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; Christopher R. Derrickson, Acting Special Agent in Charge of the FBI’s Richmond Field Office; and Peter R. Rendina, 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.

Assistant U.S. Attorneys Katherine Lee Martin and Kevin 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. 3:20-cr-109.

ALEXANDRIA, Va. – A doctor, formerly of Great Falls, Virginia, pleaded guilty today to willful failure to pay employment taxes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting United States Attorney Raj Parekh for the Eastern District of Virginia.

According to court documents, from 2011 through 2018, Arshad Pervez Cheema owned and operated Walk-In Medical Center, PC, a medical practice located in Falls Church and Herndon, Virginia.  Cheema was responsible for collecting and paying to the IRS payroll taxes, which consisted of Social Security, Medicare, and income taxes that had been withheld from his employees’ wages, as well as an employer portion.  Over a four-year period from 2012 to 2016, Cheema willfully did not pay over $500,000 in payroll taxes.  Instead, he used some of the withheld funds for other business ventures, including to open and run a restaurant in Washington, D.C.  In addition, Cheema did not pay corporate taxes for Walk-In Medical Center, PC, nor did he pay employment taxes for another doctor’s office, Falls Church Family Care PC, which he operated.  In total, Cheema did not pay over $2 million in employment and corporate taxes. 

U.S. District Judge Anthony J. Trenga scheduled sentencing for June 23, 2021. At sentencing, Cheema faces a maximum sentence of five years’ imprisonment.  Cheema also faces a period of supervised release, restitution, and a fine.

Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Parekh commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Casey S. Smith and Assistant U.S. Attorney Russell L. Carlberg, who 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-cr-13.

NORFOLK, Va. – A criminal complaint was filed in the U.S. District Court for the Eastern District of Virginia today charging a Chesapeake man with multiple federal crimes, including attempted murder, related to his alleged attack on a security guard at a Social Security Administration building.

According to court documents, William Douglas Rankin, 44, is alleged to have entered the Social Security Administration building in Norfolk on February 8, armed with a .380 firearm, a 9 millimeter rifle, and approximately 600 rounds of ammunition, including three fully loaded extended 9mm magazines.

After a brief verbal interaction with the security guard on duty, Rankin allegedly raised his .380 handgun and fired a series of bullets at the guard, who suffered non-fatal injuries. The security guard was shot in the arm, shoulder, both legs, and chest area. A ballistic vest stopped the shots to the guard’s chest, and he returned fire and struck Rankin.

Approximately 150 people, including 68 federal employees and a number of Administrative Law Judges, work at the Social Security building on Lake Herbert Drive in Norfolk. Due to the ongoing COVID-19 pandemic, the majority of them were not present at the time Rankin entered the building.

Rankin was charged with the following federal crimes: 1) attempted murder of a person assisting an officer or employee of the U.S. government; 2) possession and discharge of a firearm in furtherance of a crime of violence; 3) assault of a person assisting an officer or employee of the U.S. government; 4) possession of firearms in a federal facility; and 5) felon in possession of a firearm and ammunition.

Based on the charges in the criminal complaint, if convicted, Rankin faces a mandatory minimum penalty of 10 years’ imprisonment and a maximum of life 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; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; L. Eric Patterson, Director of the Federal Protective Service; and Larry D. Boone, Chief of Norfolk Police, made the announcement.

Assistant U.S. Attorneys John F. Butler and E. Rebecca Gantt 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. 2:21-mj-52.

A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty.

ALEXANDRIA, Va. – A Florida man pleaded guilty today to unlawfully distributing thousands of prescription opioid pills in exchange for over half a million dollars through the “dark web.”

According to court documents, between 2012 and 2020, Daren James Reid, 35, of Fort Lauderdale, used the dark web to distribute oxycodone. Under the monikers “Oxyflight” and “Imperial Royalty,” Reid sold over 12,000 oxycodone pills, the sales of which yielded a profit of over $500,000. Reid used dark web sites such as Silk Road, Wall Street, and Apollon to advertise and sell oxycodone pills of various strengths and prices. Reid utilized the U.S. Postal Service to illegally mail the pills to his customers across the U.S. in exchange for Bitcoin payments. Reid also possessed over one kilogram of oxycodone, morphine, and other pills in a storage facility in Florida.

“Reid preyed upon the vulnerabilities of others by illegally distributing over half a million dollars of highly addictive opioids through dark web markets,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “EDVA, along with its law enforcement partners, will continue to investigate and hold accountable individuals who pose a significant danger to our communities by placing profits over lives.”

Reid pleaded guilty to unlawful distribution and possession with the intent to distribute oxycodone. He is scheduled to be sentenced on June 1 and faces a maximum penalty of 20 years in prison for each of the counts. 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; Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations, Metro Washington Field Office; James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division; and Antonio J. Gomez, Inspector in Charge of the Miami Division of the U.S. Postal Inspection Service, made the announcement after Senior U.S. District Judge Liam O’Grady accepted the plea.

Special Assistant U.S. Attorney Karolina Klyuchnikova is prosecuting the case.

This investigation was conducted by the FBI Washington Field Office’s Hi-Tech Opioid Task Force, which is composed of FBI agents and task force partners, including special agents and officers of the Food and Drug Administration’s Office of Criminal Investigations, DEA, U.S. Postal Inspection Service, and detectives from local assisting police agencies. The task force is charged with identifying and investigating the most egregious Dark Web marketplaces, and the vendors operating on the marketplaces who are engaged in the illegal acquisition and distribution of controlled substances, to include fentanyl, methamphetamine, and other opioids.

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-6.

ALEXANDRIA, Va. – Acting U.S. Attorney Raj Parekh announced today that the United States Attorney’s Office for the Eastern District of Virginia (EDVA) collected approximately $242,000,000 in criminal, civil, and asset forfeiture actions in Fiscal Year 2020 on behalf of private and government victims.

“It is an honor to serve with my colleagues in the Eastern District of Virginia, all of whom have supported each other with tremendous resolve as we face the many challenges of the ongoing pandemic together,” said Acting U.S. Attorney Raj Parekh. “Our criminal and civil recovery teams worked tirelessly during a very difficult year to make crime victims whole, use asset forfeiture to reclaim the illicit proceeds of crimes, and protect the public fisc. We will continue our firm commitment to preserving the principles of equality, equity, and justice for all as we uphold victims’ rights and protect our communities throughout 2021 and beyond.”

During FY2020, EDVA recovered approximately $242 million in criminal matters on behalf of crime victims and in civil matters where federal money was at stake. Of these recoveries, $22.3 million involved restitution for victims within EDVA’s criminal cases, and $41.1 million was collected through civil actions and settlements where the federal government was a victim, such as defense procurement fraud, healthcare fraud, and qui tam (whistleblower) cases, as well as the collection of agency debts and other related civil enforcement matters. The remaining $167.9 million was recouped civilly in joint matters with EDVA and the Justice Department’s Civil Division or various Department litigating components, working with other U.S. Attorneys’ Offices and the Virginia Office of the Attorney General’s Medicaid Fraud Control Unit.

Working with DOJ partner agencies and divisions, EDVA also collected a total of approximately $10.6 million through asset forfeiture in FY2020. Of that amount, EDVA deposited over $8.3 million into the Justice Department’s Assets Forfeiture Fund in FY2020, while the other approximately $2.3 million was restored or remitted to victims. EDVA also used asset forfeiture statutes and processes to restrain an additional $13.6 million, which was ultimately returned directly to victims in lieu of forfeiture.

In addition to a team of legal support staff and contractors, EDVA’s asset recovery efforts are led by Deputy Chief of the Asset Recovery Unit for Financial Litigation Laura M. Grimes, Deputy Chief of the Asset Recovery Unit for Asset Forfeiture Kevin P. Hudson, Chief of the Asset Recovery Unit Jessica D. Aber, and Assistant U.S. Attorneys Janet Jin Ah Lee, Ron Fiorillo, and Annie Zanobini.

Civil recoveries are the result of litigation and debt collection efforts by attorneys, analysts, and contractors supporting the Affirmative Civil Enforcement (ACE) and Civil Rights Enforcement Units. Those efforts are led by ACE Unit Supervisor Gerard Mene and Assistant U.S. Attorneys Ilene Albala, Krista Anderson, Deirdre G. Brou, Robert Coulter, Steve Gordon, Garry Hartlieb, William Hochul, Robert P. McIntosh, Lauren F. Oberheim, Kristin S. Starr, and Clare P. Wuerker.

The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the federal government and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. Restitution is paid to the victim; criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which then distributes the funds collected to federal and state victim compensation and assistance programs.

The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected civil penalties imposed on individuals and/or corporations for violations of federal health, safety, civil rights, drug diversion, or environmental laws. In addition, civil debts were collected on behalf of various federal agencies, including the U.S. Department of Housing and Urban Development, Veterans Affairs, Health and Human Services, Internal Revenue Service, Small Business Administration, and Department of Education.

The Justice Department, as a whole, collected more than $15.9 billion in civil and criminal actions in 2020. This amount is more than five times the approximately $3.2 billion appropriated budget for all 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department. The total includes all monies collected through Justice Department-led enforcement actions and negotiated civil settlements. It also includes more than $13.5 billion in payments made directly to the Justice Department and more than $2.4 billion in indirect payments made to other federal agencies, states, and other designated recipients.

NORFOLK, Va. – A Portsmouth man was sentenced today to 11 years in prison for his role in a fentanyl and heroin distribution ring that led to multiple overdoses and at least one death.

According to court documents, Deshawn Jones, 29, dealt heroin and fentanyl as part of a Hampton Roads-based group that sold powerful narcotics to individuals from South Hampton Roads and the Outer Banks region of North Carolina. On November 23, 2018, Jones sold a mixture of fentanyl and heroin to C.H., who used the drugs, overdosed, and died as a result. Jones continued to sell narcotics after learning of C.H.’s death, and when police executed a search warrant at his Portsmouth home in June 2019, they found fentanyl, heroin, and a loaded semi-automatic handgun with an extended magazine.

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.

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.; J. Phillip Webster, Chief of the Nags Head Police Department; and Kelvin L. Wright, Chief of the Chesapeake Police Department, made the announcement after sentencing by U.S. District Judge John A. Gibney, Jr.

Assistant U.S. Attorneys Andrew Bosse and William B. Jackson 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. 2:19-cr-163.

ALEXANDRIA, Va. – An Arlington businessman pleaded guilty today to 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.

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, 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, and 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.

“Stewart’s fraudulent conduct during a critical time in our Nation’s fight against COVID-19 undermined the government’s ability to provide much needed PPE to the community, including to the front-line health care workers serving our military veterans,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “In addition, by fraudulently obtaining government-backed loans intended to be lifelines to keep businesses afloat, Stewart unlawfully took and misused resources devoted to help struggling Americans.”

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.

“Exploiting COVID-19 relief efforts for personal gain, to receive lucrative contracts with no intention of fulfilling them, is unconscionable,” said DHS Inspector General Joseph V. Cuffari. “I am proud of everyone at DHS OIG who worked on this case. I am also thankful to our law enforcement partners who helped us bring a swift end to this scheme.”

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. The loss to the U.S. government from this fraud is approximately $261,500.

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.

“By falsely claiming to have served in the U.S. Marine Corps to unlawfully increase his veteran’s benefits, Stewart stole money dedicated to providing resources and services to American military veterans and their families. This was an affront to those who honorably served,” said Acting U.S. Attorney Parekh. “We thank our law enforcement partners for bringing Stewart to justice.”  

Stewart pleaded guilty to making false statements, wire fraud, and theft of government funds and is scheduled to be sentenced on June 16, 2021. He faces a maximum penalty of 35 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; James A. Dawson, Special Agent in Charge of the FBI’s 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 U.S. District Judge Rossie D. Alston, Jr. accepted the plea.

Assistant U.S. Attorney William Fitzpatrick 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. 1:21-cr-5.

ALEXANDRIA, Va. – As part of a long-standing tradition spanning more than 25 years, the U.S. Attorney’s Office for the Eastern District of Virginia (EDVA) will honor the contributions and history of the African American community during this year’s Black History Month.

“Our Office will continue to recognize the proud traditions and rich history of the African American community, while also acknowledging the challenging realities, both past and present, that Black Americans have experienced here in Virginia and across our Nation,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “As it is inscribed on the walls of the U.S. Department of Justice Building, ‘the place of Justice is a hallowed place,’ and we are deeply committed in EDVA to ensuring that all participants in the legal process—including victims, parties, and members of the Bench and Bar—are treated with respect and dignity as we seek equal justice under the law. As part of that commitment, we are dedicated to furthering our collective efforts to promote diversity and inclusion in all forms through our hiring, advancement, and community outreach practices.”

The annual tradition of Black History Month in February is commemorated by the Association for the Study of African American Life and History, which establishes a national theme for each year. The theme for 2021 is “The Black Family: Representation, Identity, and Diversity.” For over 25 years, EDVA has hosted events based on the national theme, or closely related topics, with speakers and performers appearing during programs held at EDVA’s offices. Those speakers have included prominent members of the legal community—such as judges, prosecutors, defense attorneys, Justice Department leadership, and law professors—as well as scholars, historians, and performing artists.

Notable examples of memorable Black History Month programs held in EDVA have included a 2014 panel with members of the 1971 T.C. Williams High School Football Team, who inspired the 2000 film Remember the Titans; Deval L. Patrick, then-Assistant Attorney General for DOJ’s Civil Rights Division (1995); John W. Marshall, then-U.S. Marshal for EDVA (1998); Eric H. Holder, Jr., then-Deputy Attorney General (2000); Lt. General Daniel James III, then-Director of the Air National Guard (2005); Virginia Supreme Court Justice S. Bernard Goodwyn (2016); U.S. District Judge Raymond A. Jackson (2018); and representatives of the renowned National Museum of African American History and Culture in Washington, D.C. (2017, 2019).

EDVA’s tradition of hosting annual Black History Month celebrations began in 1994 and has been led by EDVA’s Black Affairs Special Emphasis Program Manager, Sabrina A. Black, since inception. The Diversity Committee was established in 2010 and includes a cross-section of EDVA’s administrative staff, legal support, and attorneys, and it has been instrumental in tackling key issues such as work/life balance, training and retention of existing employees, and diversity and inclusion in EDVA’s recruitment and hiring practices. Over time, EDVA has increased the diversity of its senior management ranks, with half of the current senior management team consisting of women and racial minorities, including Acting U.S. Attorney Parekh, the first person of color to lead the Office.

“We extend our deepest appreciation to the members of EDVA’s Black History Month and Diversity committees for their leadership and commitment in spearheading our diversity and inclusion-oriented programs for the benefit of the entire Office,” said Acting U.S. Attorney Parekh. “EDVA’s dedicated and selfless workforce is, and will always be, the heart and soul of our Office.”

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. – The mastermind behind an extensive drug trafficking ring entered a guilty plea this week, and four other defendants either entered pleas or were sentenced recently to substantial terms in prison for distributing large amounts of fentanyl, heroin, and cocaine in Newport News and North Carolina.

“Fentanyl and heroin have inflicted immeasurable amounts of pain and brought devastation to families across the United States and in EDVA,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Due to their tenacity and commitment, our federal, state, and local law enforcement partners seized 24 illegal firearms, 30 kilograms of heroin, and enough fentanyl to kill over 14 million people, saving our communities from significant loss of life and destruction.”

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, Texas, 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, NC using a bootleg mobile phone.

Ramirez-Barreto entered his guilty plea on January 25, 2021, and he is scheduled to be sentenced on July 12, 2021, by U.S. District Judge David J. Novak. Ramirez-Barreto’s residence—where law enforcement found 19 kilograms of heroin and over $600,000 in cash—is being forfeited in connection with this case. In addition, he faces a mandatory minimum term of 20 years in prison and a maximum term of life in prison.

In addition to Ramirez-Barreto, four additional defendants either entered guilty pleas or were sentenced this week by Judge Novak for their role in the drug trafficking conspiracy described above:

• Tangynika Johnson, 44, of Henderson, NC, assisted co-defendant Cory Bullock, an inmate in a West Virginia federal prison, in getting drug proceeds delivered to Ramirez-Barreto. Johnson pleaded guilty on January 29, 2021, to using a communication facility in furtherance of drug trafficking. She is scheduled to be sentenced on July 12, 2021, and faces a maximum penalty of four years in prison.
   
• James Noyes, 55, of Newport News, was a mid-level heroin distributor within co-conspirator Damarcus Mackie’s drug trafficking organization. Noyes was sentenced to 10 years in prison on January 29, 2021.
   
• Keith A. Brownson, 42, of Henderson, NC, was a cocaine and heroin dealer who arranged drop-offs of drugs and drug proceeds with Ramirez-Barreto. Brownson pleaded guilty on January 29, 2021, to conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine. He is scheduled to be sentenced on July 21, 2021, and faces a mandatory minimum of five years and a maximum penalty of 40 years in prison.

• Russell P. Johnson, 50, of Suffolk, VA, was sentenced to 140 months in prison on January 25, 2021, for conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin, 400 grams or more of fentanyl, and 500 grams or more of cocaine.
   

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.

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.

“This operation shows our resolve, along with our area law enforcement partners, to never stop working—even throughout a global pandemic—to protect the communities we serve from these deadly drugs,” said Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s Washington Division. “Operation Cookout successfully removed a number of violent drug organizations from the streets, and will enable these communities to focus on what matters most right now—the health and safety of their loved ones.”

“Operation Cookout demonstrates the extraordinary results that can be achieved when local and federal law enforcement work together to combat drug trafficking,” said Raymond Villanueva, Special Agent in Charge for the Homeland Security Investigations (HSI) Washington, D.C. field office. “Drug trafficking is a transnational problem and coordination like what we’ve seen here is the best way to combat and disrupt these trafficking networks.”

To date, 45 total defendants have been charged in Operation Cookout. Of those, 42 have admitted their criminal conduct and pleaded guilty. Thus far, 30 defendants have been sentenced, with the majority being sentenced to prisons terms ranging from two to ten years, and three defendants sentenced between 15 to 25 years in prison.

These prosecutions are 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.

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; Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation; Colonel Gary T. Settle, Superintendent of Virginia State Police; Steve R. Drew, Chief of Newport News Police; Terry L. Sult, Chief of Hampton Police Division; Col. K.L. Wright, Chief of Chesapeake Police; and Hampton Commonwealth’s Attorney Anton A. Bell made the announcement.

Assistant U.S. Attorneys Peter G. Osyf and Kevin Hudson 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.

ALEXANDRIA, Va. – A Palm Bay, Florida man was sentenced today to six years in prison for an investment fraud scheme involving the supposed production and sale of motorized surfboards.

According to court documents, Roberto Clark, 50, previously a resident of Bethesda, Maryland, operated a scheme to defraud small investors in Virginia, Maryland, and the District of Columbia. As part of the scheme, Clark falsely promised that the investments made with Clark’s company, KRM Services, would go toward manufacturing “Jetboards” for resale to third parties at substantial profits. Instead, Clark spent the money on maintaining his lavish lifestyle.

To execute the scheme, Clark falsified sales contracts with cruise lines and water sports companies; forged signatures and notary stamps; fabricated emails from supposed buyers of the Jetboards; and falsified a patent report so that it would appear he could obtain a patent on the Jetboard. He provided all of this false information to investors to convince them to invest in KRM Services. In reality, Clark had purchased a Chinese-made motorized surfboard that had serious mechanical and design problems and never properly functioned. Clark never sold a single surfboard to any buyer.

Clark primarily defrauded small investors, including people he met socially in local restaurants and bars. He maxed out one victim’s personal credit card on Christmas Eve so that she could not buy her daughter a present or travel to see family. According to court documents, Clark stole more than $400,000 from 14 victims between 2016 and 2019, causing substantial financial hardship to a number of them.

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; Matthew S. Miller, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office; and Michael L. Brown, Alexandria Chief of Police, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis, III. The Fairfax County Police Department and the Securities and Exchange Commission also provided assistance in the investigation.

Assistant U.S. Attorneys Russell L. Carlberg and Kimberly Riley Pedersen 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. 1:19-cr-332.