Eastern District of Virginia

NORFOLK, Va. – Ronald Henderson, 58, of Lewiston, North Carolina, was sentenced today to 13 months in prison for Federal Employees’ Compensation Fraud. He was also ordered to pay $163,956.23 in restitution to the Department of Labor.

Henderson pleaded guilty on Dec. 2, 2015.  According to court documents, on June 11, 2011, Henderson falsely claimed to have injured his shoulder while performing his duties as a mail carrier in Suffolk.  The injury had actually occurred previously while off-duty.  In addition to receiving compensation as a result of the false disability claim, Henderson filed hundreds of false travel claims seeking reimbursement for expenses related to obtaining medical treatment.  He also failed to notify the Department of Labor after he returned to work and was able to unlawfully
“double-dip” by receiving workers’ compensation payments and his normal paycheck at the same time.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, made the announcement after sentencing by Chief U.S. District Judge Rebecca Beach Smith.  Assistant U.S. Attorney Randy Stoker prosecuted the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-120.

ALEXANDRIA, Va. – Agape Health Management, Inc., which operates under the name Agape Adult Day Healthcare Center, located in Alexandria, has agreed to pay $385,917 to settle federal and state civil fraud allegations that claimed Agape submitted false claims for reimbursement to the Virginia Medicaid Program.

Agape operates a facility located in Alexandria that provides adult day health care primarily for Virginia Medicaid recipients. The services provided include community-based health, therapeutic, and social services designed to meet the specialized needs of elderly and disabled recipients.  Agape also provides transportation services to and from their facility. The allegations include claims that Agape knowingly submitted false or fraudulent claims for transportation services purportedly provided to Virginia Medicaid recipients that were not present or transported to the Agape facility on the claimed dates of service.

The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney's Office for the Eastern District of Virginia, the Virginia Attorney General’s Office Medicaid Fraud Control Unit, the U.S. Department of Health and Human Services Office of Inspector General, the Virginia Department of Medical Assistance Services, and the FBI's Washington Field Office.

The matter was investigated by Assistant U.S. Attorney Monika Moore, Assistant Attorney General Erica Bailey, and Assistant Attorney General Megan Winfield of the Virginia Attorney General’s Office Medicaid Fraud Control Unit.  The civil claims settled by this Federal False Claims Act and Virginia Fraud Against Taxpayers Act agreement are allegations only; there has been no determination of civil liability.

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

ALEXANDRIA, Va. – Dae Hyuck Ko, aka James Ko, aka Minghua Hong, 59, was sentenced today to 15 years in prison for conspiracy to commit bank fraud, bank fraud, and aggravated identity theft. Ko was also ordered to pay forfeiture and restitution in the amount of approximately $3 million.

Ko was convicted at trial on Jan. 13. According to court documents, Ko was the leader and organizer of a sophisticated bank fraud and identity theft scheme that targeted banks and individual victims throughout the nation.  The victims, like Ko and the co-conspirators he recruited, were of Korean ethnicity.  Ko directed his co-conspirators to open numerous checking accounts, credit accounts, and personal lines of credit using the stolen identities of these victims.  Ko then directed the complicated movement of money between these accounts to build up a banking history, which ultimately enabled him to deposit bad checks and cash out those accounts before the checks failed to clear.  Ko enforced his control of the conspiracy through violence when necessary, including by having one co-conspirator beaten and sent to the emergency room with a broken nose and fractured eye socket.  Three of Ko’s co-conspirators—Jaejoon Song, Jungtaek Kim, and Minho Yang—have previously pleaded guilty in the case and have been sentenced to 66, 40, and 33 months, respectively.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Maria L. Kelokates, Inspector in Charge of the U.S. Postal Inspection Service, Washington Division, made the announcement after sentencing by U.S. District Judge Liam O’Grady.  Assistant U.S. Attorneys Grace L. Hill and Kosta S. Stojilkovic prosecuted the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-109.

ALEXANDRIA, Va. – Mohsin Raza, 51, and his wife, Humaira Iqbal, 40, of Woodbridge, were sentenced to 24 months and 15 months in prison, respectively, for conspiracy and wire fraud affecting a financial institution.  

The four defendants were convicted by a federal jury on Feb. 3.  According to court documents and evidence presented at trial, in 2005 Raza was hired by SunTrust Mortgage (STM) as a vice-president tasked with opening an office in Annandale.  Raza hired his wife and her brothers, Farukh Iqbal, 41, and Mohammad Ali Haider, 33, both of Chantilly, to work as loan officers at SunTrust Mortgage.  From 2006 until 2007, when the defendants left SunTrust Mortgage, they falsified loan applications for borrowers and purchased fake tax documents to support the false loan applications.  SunTrust Mortgage underwriters in Richmond approved the loans totaling several million dollars based in large part upon the fake documents in the files, and ultimately borrowers were given loans to buy homes that they could not afford.

Iqbal and Haider were each sentenced today to one year and one day in prison.  In addition to their prison sentences, Raza and Humaira Iqbal were also ordered to forfeit two properties and $40,000 and pay restitution to victims in the amount of $1,923,324.53.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and Olga Acevedo, Special Agent in Charge, Federal Housing Finance Agency Office of Inspector General, made the announcement after sentencing by U.S. District Judge Claude M. Hilton.  Assistant U.S. Attorney Jack Hanly and Special Assistant Attorney Joseph Capone prosecuted the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-118.

ALEXANDRIA, Va. – Wayne Shelby Simmons, 62, of Annapolis, Maryland, a former Fox News commentator who has falsely claimed he spent 27 years working for the Central Intelligence Agency (CIA), pleaded guilty today to major fraud against the government, wire fraud, and a firearms offense.

“Wayne Simmons is a convicted felon with no military or intelligence experience,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “Simmons admitted he attempted to con his way into a position where he would have been called on to give real intelligence advice in a war zone.  His fraud cost the government money, could have put American lives at risk, and was an insult to the real men and women of the intelligence community who provide tireless service to this country.  This case is a prime example of this office’s ongoing commitment to vigorously prosecute government fraud and threats to national security.”

“Mr. Simmons lied about his criminal history and CIA employment in order to fraudulently obtain government contracts, and separately, defrauded a victim through a phony real estate investment deal,” said Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office.  “With these criminal actions, Mr. Simmons abused the trust of others, both in and outside of government, for his own personal financial gain.  I commend the work of the talented FBI personnel and prosecutors who vigorously pursued this case and brought about today’s guilty plea.”

In a statement of facts filed with his plea agreement, Simmons admitted he defrauded the government in 2008 when he obtained work as a team leader in the U.S. Army’s Human Terrain Systems program, and again in 2010 when he was deployed to Afghanistan as a senior intelligence advisor on the International Security Assistance Force’s Counterinsurgency Advisory and Assistance Team.  Simmons admitted making false statements about his financial and criminal history, and admitted that there are no records or any other evidence that he was ever employed by or worked with the CIA, or ever applied for or was granted a security clearance by that agency.  Simmons also admitted that in order to obtain the senior intelligence advisor position, he lied about work he had done a year earlier as a team leader on the Human Terrain Systems program.  Simmons admitted to making similar false statements in 2009 as well, in an unsuccessful attempt to obtain work with the State Department’s Worldwide Protective Service.

As to the wire fraud charge, Simmons admitted to defrauding an individual victim, identified as E.L., out of $125,000 in connection with a bogus real estate investment.  Simmons admitted to sending E.L. promised monthly disbursements to make it appear as if her funds had been invested as promised, and to repeatedly lying to her about the whereabouts of her money in order to perpetuate the fraud.  As Simmons admitted, he simply spent the funds on personal purposes and there was never any actual real estate investment project. 

As to the firearms charge, Simmons admitted that at the time he was arrested in this case, he was unlawfully in possession of two firearms, which he was prohibited from possessing on account of his prior felony convictions, including a prior Maryland felony conviction and two prior federal felony firearms convictions.

Simmons was indicted by a federal grand jury on Oct. 14, 2015, and faces a maximum penalty of 10 years in prison on the major fraud against the government count, a maximum penalty of 20 years in prison on the wire fraud count, and a maximum penalty of 10 years in prison on the felon-in-possession of a firearm count when sentenced on July 15.  The maximum statutory sentences are prescribed by Congress and are provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by Senior U.S. District Judge T.S. Ellis, III.  Assistant U.S. Attorneys Paul J. Nathanson and James L. Trump, along with the assistance of Senior Trial Attorney Robert E. Wallace of the Counterintelligence and Export Control Section of the Department of Justice’s National Security Division are prosecuting the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1: 15-cr-293.

NEWPORT NEWS, Va. – Nader Elnegery, 41, of Norfolk, was sentenced today to 30 months in prison for mail and wire fraud charges based on a scheme to defraud Canon, U.S.A. (Canon) and other companies of professional cameras and lenses. Elnegery was also ordered to pay $54,639 in restitution to the victims of his offense and to forfeit $38,000 recovered from his home.

Elnegery pleaded guilty on Jan. 13, just minutes before his trial was to begin. According to court documents, Elnegery admitted to falsely certifying his eligibility for membership in a program offered by Canon to professional photographers and filmmakers.  Specifically, in 2013 and 2014, Elnegery applied for memberships in his own name and in the names of five aliases, falsely claiming to own several items of professional camera equipment that he had rented from a second company, ATS Rentals.  Ownership of such equipment is the primary condition of membership in the Canon program.  Elnegery then used the Canon memberships to obtain evaluation loans of high-end, professional cameras and lenses from Canon.  Elnegery failed to return these items, as well as several items he had rented from ATS Rentals, resulting in significant losses to both companies.  In March and April 2014, Elnegery sold the majority of these items in eBay auctions, collecting the proceeds from these sales through a PayPal account.  Elnegery transferred the majority of the money he earned from these sales to his own checking account.  The items not sold were recovered from Elnegery’s home. 

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Maria Kelokates, Acting Inspector in Charge of the U.S. Postal Inspection Service, Washington Division, made the announcement after sentencing by U.S. District Judge Mark S. Davis.  Assistant U.S. Attorneys Kaitlin C. Gratton and Brian J. Samuels prosecuted the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:14-cr-48.

ALEXANDRIA, Va. – Raju Kosuri, 44, and Smriti Jharia, 45, of Ashburn, as well as four co-conspirators, were indicted by a federal grand jury yesterday on charges of conspiracy to defraud the United States and visa fraud, among other charges.

According to the indictment, Kosuri, his spouse Jharia, and their co-conspirators have fraudulently applied for more than 800 illegal immigration benefits under the H-1B visa program.  Since 2008, and at much greater scale since 2011, Kosuri has built a staffing business that amounts to a visa-for-sale system, in violation of federal law. 

The indictment alleges that Kosuri has set up a network of shell companies that he presents to immigration authorities as independent businesses in need of Indian workers, but which he in fact owns and controls.  The indictment further alleges that Kosuri and his co-conspirators use these entities to file petitions for non-existent job vacancies at Kosuri’s data center in Danville.  Kosuri is alleged to require workers to pay their own visa processing fees, in violation of H-1B program rules; and he is alleged to treat the beneficiaries as hourly contractors, again in violation of H-1B visa program rules.  The visa fraud scheme involves the forgery of numerous individuals’ signatures on visa petitions and exhibits without their knowledge.  The indictment alleges that Kosuri has generated gross proceeds of at least $20 million over the life of the scheme.

Separately, the indictment alleges that Kosuri and Jharia conspired with a consultant named Raimondo Piluso to defraud the Small Business Administration, by submitting fraudulent HUBZone applications.  Kosuri, Jharia, and Piluso are alleged to have concealed the true location, ownership, and employees of a business called EcomNets Federal Solutions in order to obtain federal loan and contract preferences, from which they have generated $150,000 in loan proceeds and five contract awards.  

Kosuri, Jharia, and Piluso face a maximum penalty of 30 years in prison, if convicted.  The other co-conspirators face a maximum penalty of 10 years in prison, if convicted.  The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington; Bill A. Miller, Director of Diplomatic Security Service, U.S. Department of State; and Robin Blake, Special Agent in Charge of the Washington Regional Office of the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, made the announcement after the indictment was unsealed. Special Assistant U.S. Attorneys Paul K. Nitze and Angela Fiorentino-Rios are prosecuting the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-CR-43.

NORFOLK, Va. – Quinn Ausidi Goffigan, 35, of Virginia Beach, pleaded guilty today to charges of possession with intent to distribute cocaine base.

According to a statement of facts filed with the plea agreement, Goffigan was caught selling crack cocaine at a Virginia Beach hotel on Feb. 19, 2014.  Virginia Beach Police were conducting surveillance at the hotel and observed Goffigan engaging in a hand-to-hand transaction with another man.  After Goffigan’s transaction concluded, police approached Goffigan and saw that he had a bag containing a number of off-white rocks in plain view in the car.  Suspecting the off-white rocks were crack cocaine, police went to arrest Goffigan and he fled.  Police were unable to catch Goffigan that night, but arrested him on state drug trafficking charges in connection with this incident two months later.  The off-white rocks were sent to the Virginia Department of Forensic Science and tested positive for crack cocaine.

Goffigan was indicted by a federal grand jury on March 9, 2016.  Due to the fact that he has seven prior felony drug trafficking convictions through the Virginia state courts, Goffigan faces a maximum penalty of 30 years in prison when sentenced on September 6, 2016.  The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after the plea was accepted by U.S. District Judge Raymond A. Jackson.  Assistant U.S. Attorney Kevin Hudson is prosecuting the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-34.

NORFOLK, Va. – Alvin Norlee Moore III, 29, of Norfolk, was sentenced today to 188 months in prison for sex trafficking of a child.  He was also sentenced to 15 years of supervised release.

Moore pleaded guilty on January 6, 2016.  According to court documents and evidence presented at sentencing, “Jane Doe,” a 15 year-old runaway, was found by her family after fleeing from Moore after several weeks of being forced to prostitute for him in the Tidewater area. The family then contacted the Virginia Beach Police Department.  Moore had been a violent abuser of several young women since 2010.  He was originally arrested by Virginia Beach, but was transferred to federal custody on a criminal complaint.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Mark S. Davis. Assistant U.S. Attorney Elizabeth M. Yusi prosecuted the case.

The case was investigated by the FBI’s Norfolk Field Office and the Virginia Beach Police Department.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15cr52.

NEWPORT NEWS, Va. – Mark Anthony Lowe, 63, of Fort Worth, Texas, pleaded guilty today to charges of coercion and enticement of a child and penalties for a registered a sex offender.

In a statement of facts filed with the plea agreement, Lowe admitted he sexually assaulted a 6-year-old child while visiting the child’s family on Langley Air Force Base during the 2015 Christmas holiday. The child was taken to an area hospital and examined by a Sexual Assault Nurse Examiner and a sexual assault forensic report was completed.

Lowe, a registered sex offender, has a criminal record which includes numerous sexual assault offenses with a child in 1993 in Tarrant County, Texas.

Lowe was indicted by a federal grand jury on March 14, and faces a maximum penalty of life in prison when sentenced on Sept. 7. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the plea was accepted by U.S. District Judge Raymond Jackson.  Assistant U.S. Attorney Lisa McKeel and Kaitlin Gratton are prosecuting the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:16cr31.

NORFOLK, Va. – Sophia Dix, 35, of Newport News, pleaded guilty today to charges of wire fraud.

According to a statement of facts filed with the plea agreement, Dix was a service representative for the Social Security Administration (SSA) in its Norfolk office.  In her position, Dix had computer access to SSA beneficiary information, including bank account data for the direct deposit of benefit payments.  From April 2014, through August 2015, Dix rerouted over $56,000 in other persons’ SSA benefits to her own bank account. 

Dix was indicted by a federal grand jury on March 9, and faces a maximum penalty of 20 years in prison when sentenced on July 21. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Michael McGill, Special Agent in Charge, Social Security Administration Office of the Inspector General, made the announcement after the plea was accepted by Senior U.S. District Judge Robert G. Doumar.  Assistant U.S. Attorney Elizabeth M. Yusi is prosecuting the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16cr32.

ALEXANDRIA, Va. – Christopher Craft, 41, of Woodbridge, pleaded guilty today to receipt of child pornography.

In a statement of facts filed with the plea agreement, from July 25, 2014, through Oct. 8, 2014, Craft used a peer-to-peer file sharing program to receive and collect child pornography videos and images, including videos of children as young as 5 years-old being sexually abused. In total, Craft’s child pornography collection included 480 images and 111 videos of children being sexually exploited, including images and videos depicting sadistic or masochistic conduct.

Craft faces a mandatory minimum penalty of five years in prison, and a maximum penalty of 20 years in prison when sentenced on July 8. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge T.S. Ellis, III.  Assistant U.S. Attorney Kellen S. Dwyer and Special Assistant U.S. Attorney Scott Claffee are prosecuting the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-47.

ALEXANDRIA, Va. – Derek Leon Mantilla, 21, formerly of Fairfax, pleaded guilty today to sex trafficking of minor.

Based on court documents, from at least November 2014 through February 2015, Mantilla, together with Ismael Antonio Mendez and Caitlyn Ann Smith, recruited a 15 year-old girl to engage in commercial sex acts to pay off a debt that was owed to Mantilla by Mendez.  The adults taught the girl how to prostitute, took photos of her to use in advertisements, and created advertisements for commercial sex that were posted on the Internet.  The three adults knew the girl was a minor and instructed her to lie about her age to customers.  Over a three month period, the adults traveled with the girl through various states, including Virginia, for the purposes of advertising and engaging the girl in commercial sex.  During that period, the girl worked seven days a week and saw an average of 10 to 12 customers a night.  Once the girl had earned enough to pay off the debt, the Mantilla directed her to leave the adults, and she did. 

Co-defendants Ismael Antonio Mendez and Caitlyn Ann Smith previously pleaded guilty in the case. 

Mantilla faces a mandatory minimum of 10 years and a maximum penalty of life in prison when sentenced on July 8. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and Colonel Edwin C. Roessler, Jr., Chief of the Fairfax County Police Department, made the announcement after the plea was accepted by U.S. District Judge Leonie M. Brinkema.  Assistant U.S. Attorney Whitney Dougherty Russell and Special Assistant U.S. Attorney Lauren Britsch are prosecuting the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-91.

RICHMOND, Va. –Bon Secours Health System, Inc., located in Marriottsville, Maryland, and one of its surgical oncologists, Dr. Eugene Y. Chang, M.D., of Suffolk, have agreed to pay $400,000 to settle civil fraud allegations that while at Bon Secours Maryview Medical Center in Portsmouth,  Dr. Chang billed Medicare and other federal healthcare payors for non-covered breast examinations and ultrasounds. 

The settlement resolves allegations that from June 1, 2010, through Dec. 31, 2014, Dr. Chang falsified documents with diagnosis codes, such as "lump or mass in breast," where none existed. Chang allegedly did this in order to induce federal healthcare payors such as Medicare to pay for non-covered “screening” breast examinations in connection with routine screening mammograms as if they had been reimbursable “diagnostic” breast examinations. Chang would assign a code that requires a chief complaint from the patient, indicating to Medicare and other payors that the examination was “diagnostic,” while patient charts maintained by Dr. Chang indicated that the patient had no complaint.  Additional allegations resolved by the settlement include  arranging  for certain patients to receive screening breast examinations and screening breast ultrasounds at approximately six-month intervals following screening mammograms, and improperly billing these services as “diagnostic,” which resulted in federal healthcare programs paying for non-covered screening examinations and ultrasounds.

The settlement resolves allegations in a lawsuit filed in the U.S. District Court for the Eastern District of Virginia by a former Bon Secours practice manager and a former colleague of Dr. Chang under the qui tam, or whistleblower provisions of the False Claims Act.  Under the False Claims Act, private citizens, also known as relators, can bring suit on behalf of the United States and share in any recovery.  The relator share in this settlement is $108,000.

The relators alleged that Bon Secours’ management had specific knowledge of Dr. Chang’s activities after the relators alerted Bon Secours  to the problem in August 2011.

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

The matter was investigated by Assistant U.S. Attorney Robert McIntosh.  The civil claims settled by this False Claims Act agreement are allegations only; there has been no determination of civil liability.

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

RICHMOND, Va. – Julius Ripley, 60, of Richmond, pleaded guilty yesterday for his in role the robberies of a Sprint Wireless store located in Colonial Heights and the robbery of a Verizon Wireless store located in Mechanicsville.  Ripley was also ordered to pay $49,002 in restitution to the victims of the offense.

In a statement of facts filed with the plea agreement, Ripley admitted that on February 1, 2015, he robbed the Adcomm store (Sprint) located in Colonial Heights.  He entered the business with a small, semi-automatic handgun and demanded the employees give him cell phones and cash.  He then had the employees remove their clothing and ordered them at gunpoint into the bathroom.  Ripley obtained $39, 912 worth of phones and tablets from the robbery, and $140.00 in cash. Ripley also admitted that on March 2, 2015, he robbed the Wireless Zone store (Verizon) located in Mechanicsville.  Ripley entered the business with a small semi-automatic handgun and demanded the employees give him cell phones.  He then had the employees remove their clothing and ordered them at gunpoint into the back room of the store.  Ripley obtained approximately $8,950.00 worth of phones and tablets from the robbery. 

Ripley was indicted by a federal grand jury on June 2, 2015, and faces a maximum penalty of twenty years in prison when sentenced on July 28, 2016. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; and Douglas A. Middleton, Chief of Police for the Henrico County Police Division, made the announcement after the plea was accepted by U.S. District Judge John A. Gibney.

This case was investigated by officers and detectives with the Henrico County Police Division in conjunction with the FBI’s Central Virginia Violent Crime Task Force.  Assistant U.S. Attorney S. David Schiller is prosecuting the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15-cr-107.

RICHMOND, Va. – James E. Dunivan, Jr., 52, of Powhatan, was sentenced today to 27 months in prison for wire fraud.  Dunivan was also ordered to pay $500,000 in restitution to victims of the offense.

Dunivan pleaded guilty on January 15.  According to court documents, Dunivan was formerly the president of Virginia Financial Associates, Inc., an insurance and investment firm located in Richmond.  Between May 2012 and January 2015, Dunivan engaged in a scheme to defraud two investors by convincing both to invest in two separate limited liability companies (LLCs). Dunivan represented to one investor that an LLC established by Dunivan would operate a hedge fund, and that the investor’s money would be used as capital to establish, market, and operate the hedge fund.  Between May 2012 and July 2013, the investor provided Dunivan with $425,000 for investment in the hedge fund.  Instead of using the investor’s money for the promised purposes, Dunivan used the funds to pay for personal and lifestyle expenses—including mortgage payments for his personal residence and over $20,000 in private school tuition—and to make interest payments owed to the investor and others related to separate investments.  Between September 2014 and January 2015, Dunivan then solicited money from a second investor, representing to that investor that an LLC established by Dunivan would function as a proprietary trading firm, and that the investor’s money would be used to trade futures.  After initially obtaining $50,000 from the investor, Dunivan then told the investor that the investor’s capital account had increased due to trading gains, causing the investor to invest another $25,000.  In fact, Dunivan used most of the investor’s money for his own personal expenses.  

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Douglas F. Mease, Special Agent in Charge of the U.S. Secret Service’s Richmond Field Office, made the announcement after sentencing by Senior U.S. District Judge James R. Spencer.  Assistant U.S. Attorney Dominick S. Gerace prosecuted the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15-cr-202.

ALEXANDRIA, Va. – Donna L. Jennings, 44, of Winchester, was sentenced today to 54 months in prison for embezzling over $1 million from Winchester Community Federal Credit Union. Jennings was also ordered to forfeit and pay $1,059,767.52 in restitution to her victims.

Jennings pleaded guilty on Dec. 18, 2015. According to court documents, Jennings admitted to stealing over $1 million in funds from Winchester Community Federal Credit Union where she was employed as its manager.  From 2001 through 2014, Jennings took cash from teller drawers, fraudulently opened financial accounts, conducted financial transactions without customers’ knowledge, made false entries into accounting records, and approved loans without authority.  Jennings funneled the proceeds of her fraud into accounts she controlled and used the stolen funds to purchase gifts for herself and pay credit card bills.  When federal bank examiners questioned Jennings about suspicious transactions, she made false statements and altered Board of Director meeting minutes to support her lies.  As a result of Jennings’ conduct, the National Credit Union Administration placed Winchester Community Federal Credit Union into a restricted status and invited another financial institution to merge with it for the protection of its membership and the National Credit Union Administration insurance fund.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Liam O’Grady.  Assistant U.S. Attorney Uzo Asonye prosecuted the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-358.

A member of an international child exploitation conspiracy was sentenced to 21 years in prison today for his participation in two websites that were operated for the purpose of coercing and enticing minors as young as eight years old to engage in sexually explicit conduct on web camera. 

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Section Chief Calvin A. Shivers of the FBI’s Violent Crimes Against Children Section (VCACS) made the announcement.

Brian K. Hendrix, 42, of Mt. Juliet, Tennessee, was sentenced by U.S. District Judge T.S. Ellis III of the Eastern District of Virginia, who also ordered Hendrix to serve a 10 year term of supervised release.  Hendrix will also be required to register as a sex offender.  In January, Hendrix was convicted at trial by a federal jury on child pornography charges.  The investigation, Operation Subterfuge, identified more than 300 minor victims in the United States and an estimated 1,600 minor victims were lured to the websites.

According to evidence presented at trial, Hendrix’s co-conspirators created false profiles on social networking sites, such as YouTube, posing as young teenagers to lure children to the websites they controlled.  Once children were on the conspirators’ websites, the conspirators, including Hendrix, showed the children pre-recorded videos of prior minor victims, often engaging in sexually explicit conduct, to make the new victims think that they were chatting with another minor.  Using these videos, Hendrix and co-conspirators coerced and enticed children to engage in sexually explicit activity on their own web cameras, which the website automatically recorded.  Conspirators earned points based on their contribution to the success of website objectives, which allowed them access to the sexually exploitative videos of children.  Several of these sexually exploitative videos were found on digital devices belonging to Hendrix.  Law enforcement agencies have disabled both websites.

Trial Attorney Lauren Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Tracy Doherty-McCormick of the Eastern District of Virginia prosecuted the case.  CEOS Trial Attorney Ravi Sinha assisted with the prosecution.

VCACS special agents led the investigation with the assistance of the FBI’s Operation Rescue Me and the FBI’s Digital Analysis and Research Center.  The South Africa Police Service, Family Violence, Child Protection and Sexual Offenses, Gauteng; Dutch Police Service Agency, KLPD; Royal Canadian Mounted Police, National Child Exploitation Coordination Centre; and the Australian Federal Police, Child Protection Operations, Sydney were active partners in the investigation.  The U.S. Attorney’s Office of the Middle District of Tennessee contributed to the investigation and the prosecution. 

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. – Kyle Cary, 25, of Hyattsville, Maryland, was sentenced today to 40 months in prison and three years of supervised release for conspiracy to commit bank fraud for his role in a five-year check fraud and identity theft conspiracy.

Cary pleaded guilty on January 8.  As detailed in the below chart, seven co-conspirators were previously sentenced to significant prison terms for their roles in this same conspiracy.   

According to statements of fact filed with the plea agreements, Ray Ekobena and his younger brother, Stefan Ekobena, printed fraudulent checks using victims’ bank account information.  The Ekobenas obtained victims’ bank account information by enlisting bank tellers and other insiders who had access to sensitive personal information through their employment.  The Ekobenas also employed a network of recruiters.  One such recruiter was Cary (aka Hugo Stacks), who would recruit bank account holders to provide him with their debit card, the PIN for the debit card, and other information which Cary would then provide to his co-conspirators via middlemen such as Gani Cole and Rodney Hardy.  Co-conspirators such as Jerome Johnson, Deallto Davis and Alan Lamin also furthered the conspiracy by depositing the fraudulent checks into bank accounts under false names and withdrawing the resulting funds before the banks discovered the fraud.   

In total, the conspiracies victimized over 200 individuals and caused an actual loss amount of $712,231. Victims include well-known small businesses and charities, including the Leukemia & Lymphoma Society.

Name

Age

Hometown

Sentencing Information

Ray Ekobena

27

Alexandria

Sentenced Nov. 6, 2015 to 104 months in prison and three years of supervised release. Ordered to forfeit $712,231.22 and pay that amount in restitution.

Stefan Ekobena

24

Atlanta, Georgia

Sentenced Nov. 6, 2015 to 66 months in prison and three years of supervised release. Ordered to forfeit $199,808.29 and pay that amount in restitution.

Rodney Hardy

25

Hyattsville, Maryland

Sentenced Nov. 6, 2015 to 30 months in prison and three years of supervised release. Ordered to forfeit $20,618.41 and pay that amount in restitution.

Jerome Johnson

32

Washington, D.C.

Sentenced Dec. 4, 2015 to 30 months in prison and three years of supervised release. Ordered to forfeit $100,000.00 and pay $19,091.30 in restitution.

Deallto Davis

20

Washington, D.C.

Sentenced on Dec. 4, 2015 to 6 months in prison and three years of supervised release. Ordered to forfeit $7,678.24 and pay $60,954.75 in restitution.

Gani Cole

27

Bryans Road, Maryland

Sentenced on April 1, 2016 to 30 months in prison and three years of supervised released.  Ordered to forfeit $5,247.48 and pay that amount in restitution.

Kyle Cary

25

Hyattsville, Maryland

Sentenced today to 40 months in prison and three years of supervised released.  Ordered to forfeit $78,000.00 and pay $18,906.27 in restitution.

Alan Lamin

25

Washington, D.C.

Sentenced July 8, 2015 to 54 months in prison and three years of supervised release. Ordered to pay $124,640 in restitution.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Maria Kelokates, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service (USPIS); Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and Colonel Edwin C. Roessler Jr., Chief of the Fairfax County Police Department, made the announcement after sentencing by U.S. District Judge Claude M. Hilton.  Assistant U.S. Attorney Kellen S. Dwyer and Special Assistant U.S. Attorney Joseph V. Longobardo prosecuted the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-180 and 1:15-cr-327.

NORFOLK, Va. – David A. Parker, 49, of Virginia Beach, was sentenced today to 24 months in prison for evading income tax assessment and payment. Parker was also ordered to pay restitution in the amount of $1,070,358.26 and a fine of $50,000.

Parker pleaded guilty on Oct. 22, 2015.  According to court documents, Parker is the owner of Rudee Inlet Jet Skis and Adventure Parasail, Inc. – two companies that are in the business of providing jet ski rentals and parasailing tours at the Virginia Beach oceanfront to tourists and residents.  During the relevant timeframe, Parker was also a partner in Duck Parasail, Inc., located in Duck, North Carolina, which provided similar services.  In a statement of facts filed with the plea agreement, Parker admitted that from 2005 until 2011, he completely failed to file individual federal income tax returns and, also declined to file business income tax returns after 2007.  For several years, Parker ignored attempts by the Internal Revenue Service to recoup his tax balance.  In February 2012, an IRS Revenue Officer – again attempting to recover Parker’s outstanding tax balance – interviewed Parker about his failure to file individual income tax returns and his current finances.  Parker failed to disclose all of his assets to the officer and maintained that he had little money, thus could not pay his tax balance.  In the weeks after his meeting with the revenue officer, and rather than repay any portion of his tax balance, Parker traveled to casinos in Florida and Atlantic City, where he purchased nearly $50,000 in chips.  Despite this meeting with the Revenue Officer, Parker continued to choose not to file his tax returns for the next several years.  The combined tax due and owing resulting from Parker’s failure to file individual and business income tax returns for tax years 2005 through 2011 is over $1 million.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Thomas Jankowski, Special Agent in Charge, Washington D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by U.S. District Judge Arenda L. Wright Allen.  Assistant U.S. Attorney V. Kathleen Dougherty prosecuted the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-113.

RICHMOND, Va. – Nassau Isiah Lucas, 26, of Henrico County, was sentenced today to 140 months in prison for possessing a high capacity firearm while being a convicted felon.

Lucas was found guilty after a jury trial on Dec. 30, 2015.  According to court documents and evidence presented at trial, Lucas possessed a 9-millimeter semi-automatic pistol and a 7.62 millimeter semi-automatic rifle when he sold them in August 2014 and September 2014.  During the two-day jury trial, evidence was presented that Lucas, a convicted felon, possessed and then sold the firearms to individuals he believed were gun runners who would sell the firearms in New York   In fact, the individuals were undercover police officers with the Richmond Police Department.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Michael F. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; Alfred Durham, Chief of the Richmond Police Department; and Douglas A. Middleton, Chief of Henrico County Police Department, made the announcement after sentencing by U.S. District Judge Robert E. Payne. Assistant U.S. Attorney David T. Maguire prosecuted the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15-cr-077.

A civilian employee of the U.S. Department of Defense’s 501st Military Intelligence Brigade pleaded guilty today in the Eastern District of Virginia to illegally obtaining over $141,561 in Living Quarters Allowance (LQA) funds.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Deputy Assistant Inspector General for Investigations Stanley A. Newell of the Defense Criminal Investigative Service (DCIS), Director Frank Robey of the U.S. Army Criminal Investigative Command’s (CID) Major Procurement Fraud Unit and Assistant Director in Charge Deirdre Fike of the FBI’s Los Angeles Field Office made the announcement.

Koo Hyung Jung, 61, of Fairfax, Virginia, pleaded guilty to one count of knowing conversion of government property before U.S. District Judge Anthony J. Trenga of the Eastern District of Virginia.  Jung will be sentenced on July 1, 2016.

According to admissions made in connection with his plea, in 2008, 2010 and 2012, Jung submitted false documents in order to obtain LQA funds from the Department of Defense.  Jung then converted the funds to his own personal benefit, contrary to the applicable regulations, allowing him to obtain government funds without paying the requisite taxes on the lump sum LQA payments, he admitted.

DCIS, CID and the FBI are investigating the case with assistance from the FBI Legal Attaché Jin W. Kim in the Republic of Korea and the Justice Department’s Office of International Affairs.  Trial Attorneys Richard B. Evans and Justin D. Weitz of the Public Integrity Section and Assistant U.S. Attorney Uzo Asonye of the Eastern District of Virginia are prosecuting the case.

ALEXANDRIA, Va. – Thomas Eugene Ahalt, 71, of Berryville, pleaded guilty today to conspiracy to commit bribery concerning federal program funds for his role in a bribery scheme that caused over $500,000 in losses to the U.S. government. 

According to the statement of facts filed with the plea agreement, Ahalt has served as the President of Mobile Auto Truck Repair (Mobile Auto), an automotive repair business in Purcellville, since 2007.  Mobile Auto provided repair services to Virginia Regional Transit (VRT), a not-for-profit 501(c)(3) organization that provides transportation services throughout Northern Virginia.  VRT is funded by a combination of federal, state and local grants, including from the U.S. Department of Transportation. 

According to the plea agreement, Ahalt participated in two fraud schemes from January 2007 through December 2015.  In the first scheme, Ahalt and M.M., a former chief executive officer of VRT, agreed Mobile Auto would submit—and VRT would approve—false invoices for certain labor charges.  In exchange, Ahalt would make bi-weekly kickback payments to M.M. totaling half of the additional labor charges.  Accordingly, between 2007 and 2015, M.M. approved and VRT paid to Mobile Auto approximately $380,000 in fraudulent additional labor charges.  During the same period, Ahalt gave M.M. approximately $190,000 in illegal kickback payments.

In addition to the kickback payment scheme, Ahalt also regularly caused Mobile Auto to submit false invoices to VRT for parts and labor associated with maintaining VRT vehicles.  Ahalt, for example, frequently added fictitious entries to invoices for repairs that had not occurred and for parts that had not been installed.  Mobile Auto submitted at least $136,000 in false invoices to VRT between 2012 and 2015.  VRT subsequently paid these false invoices using, in part, federal funds from the U.S. Department of Transportation. 

Ahalt faces a maximum penalty of five years in prison and a $250,000 fine when sentenced on June 21. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office;  Floyd Sherman, Regional Special Agent-in-Charge of the U.S. Department of Transportation Office of Inspector General, made the announcement after the plea was accepted by U.S. District Judge Gerald Bruce Lee.  Assistant U.S. Attorney Uzo Asonye is prosecuting the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-79.

ALEXANDRIA, Va. – David Patrick Diaz, 36, of Poughkeepsie, New York, was sentenced today to nine months in prison and three years of supervised release for interference with flight crew members and attendants.  Diaz was also ordered to complete mental health and substance abuse treatment programs, and pay restitution to United Airlines in the amount of $22,151.77.

Diaz pleaded guilty on Jan. 15, 2016.  According to court documents, Diaz admitted to shouting threatening statements as he charged the cockpit of a United Airlines flight shortly after it took off from Dulles International Airport in March 2015.  After being tackled by a group of passengers, Diaz said the word, “Jihad,” and he also said that there was something in the belly of the plane.  The passengers and flight attendants were able to restrain Diaz until the plane returned safely to Dulles.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga.  Assistant U.S. Attorneys Tyler McGaughey and Jonathan Fahey prosecuted the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-324.

NORFOLK, Va. – Vernon Michael Norvell, 43, and his wife, Cheron Johnson, 31, of Portsmouth, both pleaded guilty today to various drug, tax, and money laundering crimes.  Norvell pleaded guilty to conspiring to distribute of cocaine and conspiracy to commit money laundering. Johnson pleaded guilty to money laundering and making a false statement in a tax filing.

According to court documents, Norvell was a kilogram level cocaine dealer that regularly conducted transactions at his home in the Crystal Lake neighborhood of Portsmouth, at his cake business, “G’s Cake Shop – Cake For All Occasions” in Virginia Beach, and at a Food Lion parking lot off Airline Boulevard, in Portsmouth.  One confidential source regularly purchased ounce quantities of cocaine for $1,350 to $1,500 over the course of several years. Another source purchased in excess of five kilograms, often paying $46,000 per kilogram.  At times, Norvell was accepting between $60,000 and $70,000 a week for cocaine.  On five occasions from October 2014 to July 2015, the DEA, in partnership with the Chesapeake and Portsmouth Police Department, conducted controlled purchases of cocaine and crack from Norvell.

According to court documents, Norvell and Johnson used the proceeds of his cocaine distribution to purchase a home in the Crystal Lake neighborhood of Portsmouth, several automobiles, expensive clothing and other material items.  The real estate purchase was one way the couple concealed the cocaine proceeds. While the home appraised for $315,000, they purchased it for $160,000, yet they made over $80,000 in payments before and after the closing, $14,000 of which was in cash.

In addition to the drug and money laundering crimes and according to court documents, from 2012 to 2014, Norvell and Johnson reported a combined adjusted gross income of $157,916, yet during that same period they deposited $926,854, including $338,860 in cash, into nearly a dozen bank accounts, including one off shore account located in Curaҫao.  From January 2011 through August 2015 the couple deposited $468,500 in cash into their accounts.

Both Norvell and Johnson will be sentenced on June 22. Norvell faces a mandatory minimum sentence of 10 years in prison and a maximum of life in prison, while Johnson faces a maximum sentence of 20 years in prison.  The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Karl C. Colder, Special Agent in Charge of Drug Enforcement Administration (DEA) Washington Field Division; and Thomas Jankowski, Special Agent in Charge, Washington D.C. Field Office, IRS-Criminal Investigation, made the announcement after the pleas were accepted by U.S. Magistrate Judge Douglas E. Miller.  The case is being prosecuted by Special Assistant U.S. Attorney John F. Butler and Assistant U.S. Attorneys Andrew C. Bosse and Joseph E. DePadilla.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 2:16-cr-48 (Johnson) and 2:16-cr-49 (Norvell).

Two members of an international child exploitation conspiracy were sentenced today for their participation in two websites that were operated for the purpose of coercing and enticing minors as young as eight years old to engage in sexually explicit conduct on web camera. 

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Section Chief Calvin Shivers of the FBI’s Violent Crimes Against Children Section (VCACS) made the announcement.

Stephen R. Funk, 35, of Milwaukee, and James E. Hancock, 45, of Boston, Georgia, were sentenced to 252 and 90 months in prison, respectively, by U.S. District Judge T.S. Ellis III of the Eastern District of Virginia.  Both Funk and Hancock will be required to register as sex offenders.  In December 2015, Funk and Hancock each pleaded guilty to one count of conspiracy to distribute and receive child pornography.  The investigation, Operation Subterfuge, identified more than 300 minor victims in the United States and an estimated 1,600 minor victims were lured to the websites.

In connection with their guilty pleas, the defendants admitted that they and other members of the conspiracy created false profiles on social networking sites, such as YouTube, posing as young teenagers to lure children to the websites they controlled.  Once on the conspirators’ websites, the conspirators showed the children pre-recorded videos of prior minor victims, often engaging in sexually explicit conduct, to make the new victims think that they were chatting with another minor.  Using these videos, the conspirators coerced and enticed children to engage in sexually explicit activity on their own web cameras, which the website automatically recorded.  Conspirators earned points based on their contribution to the success of website objectives, which allowed them access to the sexually exploitative videos of children.  Law enforcement agencies have disabled both websites.

Trial Attorney Lauren Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Tracy Doherty-McCormick of the Eastern District of Virginia prosecuted the case.  CEOS Trial Attorney Ravi Sinha assisted with the prosecution.

VCACS special agents led the investigation with the assistance of the FBI’s Operation Rescue Me and the FBI’s Digital Analysis and Research Center.  The South Africa Police Service, Family Violence, Child Protection and Sexual Offenses, Gauteng; Dutch Police Service Agency, KLPD; Royal Canadian Mounted Police, National Child Exploitation Coordination Centre; and the Australian Federal Police, Child Protection Operations, Sydney were active partners in the investigation.  The U.S. Attorneys’ Offices of the Eastern District of Wisconsin and the Middle District of Georgia contributed to the investigation and the prosecution. 

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.

NORFOLK, Va. – Marsha King, 38, of Lakeland, Tennessee, was sentenced today to 100 months in prison for theft of government money and aggravated identity theft.

On July 30, 2015, after a week-long jury trial, King was found guilty of two counts of theft of government property and 12 counts of identity theft.  According to court documents and evidence presented at trial, King resided with her sister in Memphis, Tennessee.  King’s sister was employed as a school teacher in Memphis and actively engaged in various extra-curricular programs.  At various times, King’s sister would print out rosters of her students and bring them home.  On these rosters were various means of identification of the students in King’s sister’s class.  Unbeknownst to King’s sister, the names and means of identification of these students were used by Marsha King to file false and fraudulent federal income tax returns and fraudulently receive income tax refunds. 

The income tax returns were filed electronically from Memphis, and according to IRS records, a number of the false and fraudulent income tax returns can be traced back to IP addresses that originated from Marsha King’s Sprint account and her University of Memphis student account.  Marsha King was a student at the University of Memphis and had a student account and access to the University of Memphis intranet system.  Based upon the instructions on the false and fraudulent income tax returns, the IRS made direct deposits into a number of different bank accounts.  At least one of these accounts was in the name of Marsha King.  Other accounts were in the name of Marsha King’s friends and family members, including her ex-husband who was in prison. 

During this time period, Marsha King had another sister who lived in Norfolk.  Some of the funds obtained from these false and fraudulent tax returns were deposited into accounts in the name of King’s sister. When Marsha King traveled to Norfolk to visit her sister, she ultimately withdrew in excess of $140,000 of the fraudulently obtained income tax refunds.  In total, King filed approximately 500 fraudulent returns for approximately $611,000 in loss to the government. 

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Thomas Jankowski, Special Agent in Charge, Washington D.C. Field Office, IRS-Criminal Investigation, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.  Assistant U.S. Attorneys Stephen Haynie and Joseph Kosky prosecuted the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-65.

Marcel Lehel Lazăr, 44, of Arad, Romania, allegedly the hacker “Guccifer,” made his initial appearance today in federal court in Alexandria, Virginia. 

Lazăr had been temporarily surrendered from Romania to face U.S. charges relating to unauthorized access of protected computers, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office, Principal Deputy Assistant Secretary Bill A. Miller of the U.S. Department of State Bureau of Diplomatic Security (DSS) and Special Agent in Charge James M. Murray of the U.S. Secret Service’s Washington Field Office.

“Marcel Lazar is the latest of a dozen high-level cybercriminals who have recently been extradited to face justice in the United States,” said Assistant Attorney General Caldwell.  “Old-fashioned investigative work, enhanced international law enforcement relationships, and a long memory can ensure that foreign-based hackers have no safe haven even in the remote corners of the globe.  As the saying goes, ‘they can run, but they can’t hide.’”

“Mr. Lazar violated the privacy of his victims and thought he could hide behind the anonymity of the Internet,” said U.S. Attorney Boente.  “No matter where they are in the world, those who commit crimes against U.S. citizens will be held accountable for their actions, pursued by our investigators and prosecutors and brought to justice.” 

“As a direct result of relentless investigative efforts and cooperation with our international partners, Marcel Lazar, also known as Guccifer, will begin answering for his alleged cyberhacking activities today in the U.S. judicial system,” said Assistant Director in Charge Abbate.  “I commend the dedicated work of the agents, analysts, prosecutors and our federal partners to identify Guccifer, who is alleged to have gained unauthorized access to on-line accounts and violated the privacy of victims, while attempting to hide unsuccessfully behind the anonymity of the Internet.”

In the United States, Lazăr is charged in a nine-count indictment with three counts of wire fraud, three counts of gaining unauthorized access to protected computers, and one count each of aggravated identity theft, cyberstalking and obstruction of justice.  Lazăr's case will be heard before U.S. District Judge James C. Cacheris of the Eastern District of Virginia.

According to the indictment, from December 2012 to January 2014, Lazăr hacked into the email and social media accounts of high-profile victims, including a family member of two former U.S. presidents, a former U.S. Cabinet member, a former member of the U.S. Joint Chiefs of Staff and a former presidential advisor.  After gaining unauthorized access to their accounts, Lazăr publicly released his victims’ private email correspondence, medical and financial information and personal photographs.  The indictment also alleges that in July 2013 and August 2013, Lazar impersonated a victim after compromising the victim’s account.

The charges and allegations contained in an indictment are merely accusations.  The defendant is presumed innocent until and unless proven guilty. 

The FBI’s Washington Field Office, the DSS and the U.S. Secret Service are investigating the case with assistance from the Romanian National Police.

Senior Counsels Ryan K. Dickey and Peter V. Roman of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Jay V. Prabhu and Maya D. Song of the Eastern District of Virginia are prosecuting the case.  The Criminal Division’s Office of International Affairs has provided significant assistance.

ALEXANDRIA, Va. – The hacker "Guccifer," alleged to be Marcel Lehel Lazăr, 44, of Arad, Romania, made his initial appearance today here in federal court on charges relating to unauthorized access of protected computers.

According to the indictment, from December 2012 to January 2014, Lazăr hacked into the email and social media accounts of high-profile victims, including a family member of two former U.S. presidents, a former U.S. Cabinet member, a former member of the U.S. Joint Chiefs of Staff and a former presidential advisor.  After gaining unauthorized access to their accounts, Lazăr publicly released his victims’ private email correspondence, medical and financial information and personal photographs.  The indictment also alleges that in July 2013 and August 2013, Lazar impersonated a victim after compromising the victim’s account.

“Mr. Lazar violated the privacy of his victims and thought he could hide behind the anonymity of the Internet,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “No matter where they are in the world, those who commit crimes against U.S. citizens will be held accountable for their actions, pursued by our investigators and prosecutors, and brought to justice.” 

Lazăr had been temporarily surrendered from Romania to face U.S. charges relating to unauthorized access of protected computers.  In the United States, Lazăr is charged in a nine-count indictment with three counts of wire fraud, three counts of gaining unauthorized access to protected computers, and one count each of aggravated identity theft, cyberstalking and obstruction of justice.  If convicted, he faces a maximum of 20 years in prison, with a two-year mandatory minimum for the aggravated identity theft charges.  Lazăr’s next court appearance will be a detention hearing on Tuesday at 2 p.m.

“Marcel Lazar is the latest of a dozen high-level cybercriminals who have recently been extradited to face justice in the United States,” said Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division. “Old-fashioned investigative work, enhanced international law enforcement relationships, and a long memory can ensure that foreign-based hackers have no safe haven even in the remote corners of the globe.  As the saying goes, ‘they can run, but they can’t hide.’”

"As a direct result of relentless investigative efforts and cooperation with our international partners, Marcel Lazar, also known as Guccifer, will begin answering for his alleged cyberhacking activities today in the U.S. judicial system,” said Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office. “I commend the dedicated work of the agents, analysts, prosecutors, and our federal partners to identify Guccifer, who is alleged to have gained unauthorized access to on-line accounts and violated the privacy of victims, while attempting to hide unsuccessfully behind the anonymity of the Internet."

The FBI’s Washington Field Office, the DSS and the U.S. Secret Service are investigating the case with assistance from the Romanian National Police.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; Bill A. Miller, Principal Deputy Assistant Secretary of the U.S. Department of State Bureau of Diplomatic Security (DSS); and James M. Murray, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, made the announcement.

The case is being prosecuted by Assistant U.S. Attorneys Jay V. Prabhu and Maya D. Song, along with Senior Counsel Ryan K. Dickey and Trial Attorney Peter V. Roman of the Criminal Division’s Computer Crime and Intellectual Property Section. The Criminal Division’s Office of International Affairs has provided significant assistance.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-213.

Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.

ALEXANDRIA, Va. – Frank Michael Pearson, 45, a former Loudon County Sheriff’s Deputy from Winchester, was convicted after a bench trial today on four counts of theft in relation to his embezzlement of over $229,000 from the asset forfeiture fund at the Loudon County Sheriff’s Office.

Pearson was indicted on July 9, 2015.  According to court records and evidence presented at trial, beginning in 2006 Pearson was designated as the deputy responsible for overseeing the asset forfeiture program for the Loudon County Sheriff’s Office. The evidence presented at trial showed that beginning in or about February 2010, and continuing through October 2013, Pearson embarked on a scheme and continuing course of conduct to embezzle and steal money that had been seized by other members of the Loudoun County Sheriff’s Office for potential asset forfeiture.  The evidence showed that Pearson embezzled money from 80 separate cases over this period, taking in excess of $229,000 that had been entrusted to him.

The evidence further proved that Pearson concealed his embezzlement scheme by making false statements to his coworkers and others about the timing and fact of whether he had deposited seized money into an escrow account maintained by the Loudoun County Sheriff’s Office at a local bank.  For example, the evidence showed that on two separate occasions, Pearson re-used an old deposit slip from an unrelated case and passed it off as a new deposit slip to conceal the fact that he had not deposited all of the money entrusted to him.  The evidence further showed that in at least one instance, Pearson took money seized in one case and passed it off as money that had been seized in another case, to hide his ongoing embezzlement.

Pearson will be sentenced on June 17, and faces a maximum penalty of 10 years in prison on each of the four counts.  The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the verdict was delivered by U.S. District Judge T.S. Ellis, III. 

This case was investigated by the FBI’s Washington Field Office and the Virginia State Police. The Loudon County Sheriff’s Office cooperated with the investigation.  Assistant U.S. Attorneys Matthew Burke and Mark D. Lytle prosecuted the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-193.

ALEXANDRIA, Va. – Five California men have pleaded guilty for their roles in a nationwide home loan modification scam that defrauded over 400 homeowners out of over $3.8 million.

Roscoe Umali, 38; Jefferson Maniscan, 34; Raymund Dacanay, 47; Isaac Perez, 33; and Joshua Johnson, 36, all resided in the greater Los Angeles area. 

According to statements of facts filed with their plea agreements, from at least October 2012 through September 2014, the defendants and their co-conspirators targeted struggling homeowners and made a series of misrepresentations to induce those homeowners to make payments of thousands of dollars in exchange for supposed home loan modification assistance.  Operating under the names of fictional companies like “Equity Restoration Group,” the defendants falsely held themselves out as a non-profit organization or as affiliated with a real government program, the “Home Affordable Modification Program” (HAMP), designed to help homeowners at risk of foreclosure. Through mass mailings, phone calls, faxes, and emails with their victims, the defendants convinced homeowners to send them “reinstatement fees” and to make several monthly “trial mortgage payments” to the conspiracy, rather than to the homeowners’ lenders.  The defendants then did nothing to help modify any mortgages.  Instead, they used the victims’ payments for their own personal benefit and to further the fraud scheme.

This scam victimized over 400 individuals and families nationwide, resulting in a total loss of over $3.8 million.  It also resulted in many victims losing their homes, despite the victims’ efforts to modify their mortgages and continue to make payments on their loans.

The defendants were indicted on Oct. 22, 2015, and each faces a maximum penalty of 20 years in prison. Umali, Maniscan, and Dacanay will be sentenced on June 23, while Perez and Johnson will be sentenced on July 7. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program; and Robert Wemyss, Inspector in Charge of the Los Angeles Division of the U.S. Postal Inspection Service, made the announcement after the pleas were accepted by Senior U.S. District Judge James C. Cacheris.  Assistant U.S. Attorneys Samantha P. Bateman and James P. Gillis are prosecuting the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15cr301.

ALEXANDRIA, Va. – Solomon Oyesanya, 33, of Brooklyn, New York, pleaded guilty today to a charge of conspiracy to commit wire fraud.

Oyesanya admitted that he was part of a conspiracy, led by two Nigerian nationals, to fraudulently obtain computer hardware and products from contractors and vendors who were approved to do business with the U.S. Government, specifically the U.S. Department of Defense (“U.S. DoD”).  To accomplish this scheme, members of the conspiracy created fake U.S. DoD and other U.S. government agency websites and email accounts (sometimes called “spoofed” websites and email accounts) and placed fraudulent government purchase orders with victim contractors and vendors for large quantities of computer hardware and similar products.  In furtherance of the conspiracy, Oyesanya, using false identification, picked up or attempted to pick up fraudulently ordered shipments from legitimate carriers to divert the shipments to co-conspirators in Nigeria.  The actual and intended losses to the government contractors and vendors targeted by the conspiracy exceeded $1.5 million.

Oludayo Edgal, 32, of West Covina, California, also pleaded guilty on February 4 to a felony arising from this conspiracy.

Oyesanya, who will be sentenced on June 24, and Edgal, who will be sentenced on April 29, each face a maximum penalty of 20 years in prison, respectively.  The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Jeffery Thorpe, Special Agent in Charge of the Defense Criminal Investigative Service Cyber Field Office; and Kevin Perkins, Special Agent in Charge of the FBI’s Baltimore Field Office, made the announcement after the plea was accepted by U.S. District Judge Leonie M. Brinkema.  Assistant U.S. Attorney Kellen S. Dwyer and Special Assistant U.S. Attorneys John D. Filamor and Nima R.T. Binara are prosecuting the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-69.

ALEXANDRIA, Va. – Rohit Jawa, 25, formerly of Cincinnati, Ohio, was sentenced today to 48 months in prison for wire fraud and aggravated identity theft.

Jawa pleaded guilty on Nov. 17, 2015. According to court documents, from at least February 2013 through June 16, 2015, the defendant devised and executed a complex identity theft scheme to defraud financial institutions, insurance companies, and others.  The defendant managed numerous PayPal accounts that were engaged in a scheme to defraud eBay buyers and eBay’s third-party parcel insurance company.  During this period, the defendant repeatedly transferred money representing the proceeds of his fraud scheme from and between accounts he controlled in victim names to accounts he controlled in his own name.  In connection with this scheme, the defendant stole the identity of a Special Agent of the United States Postal Service Office of Inspector General (USPS OIG), and then used that identity to fraudulently gain access to law enforcement databases from which he stole personal identifying information of multiple victims. The defendant then used the identifying information of those individuals to open further fraudulent financial accounts in their names, without their knowledge or consent.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and Rico Medina, Deputy Assistant Inspector General for Investigations for USPS OIG, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. 

This case was investigated by the FBI’s Washington Field Office Cyber Task Force.  Assistant U.S. Attorney Whitney Dougherty Russell prosecuted the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-239.

NORFOLK, Va. – Adam Cain, 41, of Roanoke Rapids, North Carolina, was sentenced today to 360 months in prison for coercion and enticement of a minor.  He was also sentenced to 30 years’ supervised release.

Cain pleaded guilty on Dec. 10, 2015.  According to court documents, in August 2015, a concerned relative of a 15 year old girl contacted the Windsor Police Department because she found sexually explicit conversations on a computer tablet between the girl and Cain.  Cain was a registered sex offender living in Roanoke Rapids, North Carolina, and also a relative of the 15 year old girl.   The investigation revealed that Cain and the girl had been speaking online for some months.  Then, Cain drove to Windsor, picked up the girl, and then drove back to his residence in North Carolina.  There, they engaged in sexually explicit conduct.  Cain also took sexually explicit pictures with his phone of the girl.  Later on, Cain drove the girl back to Windsor. 

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Arenda L. Wright Allen.  Assistant U.S. Attorney Elizabeth M. Yusi prosecuted the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-130.

NORFOLK, Va. – Trazzonna Jacobs, 27, of Virginia Beach, pleaded guilty today to one charge of stealing from the United States Mail.

In a statement of facts filed with the plea agreement, Jacobs, who worked as a postal clerk at the Bayside Postal Station in Virginia Beach, admitted to stealing a $100 gift card and $7,000 in cash from two separate packages.  According to court records, an investigation ensued when a postal customer complained of the missing gift card.  An investigation determined the gift card had been used at local retailers and surveillance video identified Jacobs as the individual redeeming the gift card. 

The Postal Service received another complaint against Jacobs when a postal customer had $7,000 in cash stolen from a package being sent overseas.  The customer identified Jacobs as the mail clerk who had handled her package.  The customer stated she informed Jacobs of the $7,000 in the box to ensure its safety.  When the package arrived, the money was missing. The package was provided to the United States Postal Inspection Service, Office of Inspector General, where it was sent off to be fingerprinted by the U.S. Postal Inspection Service.  The U.S. Postal Inspection Service processed the package for fingerprints and Jacobs’ fingerprints were found on the inside of the package.

Ultimately, Jacobs confessed to her actions and admitted to stealing the items in question, as well as other gift cards, in order to help pay bills and support her family.

Jacobs was indicted by a federal grand jury on February 18, 2016. Jacobs faces a maximum penalty of five years in prison when sentenced on July 7, 2016. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul L. Bowman, Special Agent in Charge, United States Postal Service, Office of Inspector General, made the announcement after the plea was accepted by U.S. District Judge Arenda Wright Allen.  Assistant U.S. Attorney Joseph L. Kosky is prosecuting the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-26.

ALEXANDRIA, Va. – Three Syrian nationals, all current or former members of the Syrian Electronic Army (SEA), were charged with multiple conspiracies related to computer hacking, according to two criminal complaints unsealed today here in the U.S. District Court of the Eastern District of Virginia.

Ahmad Umar Agha, 22, known online as “The Pro,” and Firas Dardar, 27, known online as “The Shadow,” were charged with a criminal conspiracy relating to: engaging in a hoax regarding a terrorist attack; attempting to cause mutiny of the U.S. armed forces; illicit possession of authentication features; access device fraud; unauthorized access to, and damage of, computers; and unlawful access to stored communications.  Dardar and Peter Romar, 36, also known as Pierre Romar, were separately charged with multiple conspiracies relating to: unauthorized access to, and damage of, computers and related extortionate activities; receiving the proceeds of extortion; money laundering; wire fraud; violations of the Syrian Sanctions Regulations; and unlawful interstate communications.  The court has issued arrest warrants for all three defendants. 

“The tireless efforts of U.S. prosecutors and our investigative partners have allowed us to identify individuals who have been responsible for inflicting damage on U.S. government and private entities through computer intrusions,” said U.S. Attorney Boente.  “Today’s announcement demonstrates that we will continue to pursue these individuals no matter where they are in the world.”

According to allegations in the first complaint, beginning in or around 2011, Agha and Dardar engaged in a multi-year criminal conspiracy under the name “Syrian Electronic Army” in support of the Syrian Government and President Bashar al-Assad.  The conspiracy was dedicated to spear-phishing and compromising the computer systems of the U.S. government, as well as international organizations, media organizations and other private-sector entities that the SEA deemed as having been antagonistic toward the Syrian Government.  When the conspiracy’s spear-phishing efforts were successful, Agha and Dardar would allegedly use stolen usernames and passwords to deface websites, redirect domains to sites controlled or utilized by the conspiracy, steal email and hijack social media accounts.  For example, starting in 2011, the conspirators repeatedly targeted computer systems and employees of the Executive Office of the President.  Despite these efforts, at no time was an EOP account or computer system successfully compromised.  Additionally, in April 2013, a member of the conspiracy compromised the Twitter account of a prominent media organization and released a tweet claiming that a bomb had exploded at the White House and injured the President.  In a later 2013 intrusion, through a third-party vendor, the conspirators gained control over a recruiting website for the U.S. Marine Corps and posted a defacement encouraging U.S. marines to “refuse [their] orders.”

“The Syrian Electronic Army publicly claims that its hacking activities are conducted in support of the embattled regime of Syrian President Bashar al-Assad,” said Assistant Attorney General Carlin. “While some of the activity sought to harm the economic and national security of the United States in the name of Syria, these detailed allegations reveal that the members also used extortion to try to line their own pockets at the expense of law-abiding people all over the world. The allegations in the complaint demonstrate that the line between ordinary criminal hackers and potential national security threats is increasingly blurry.”

Today, the FBI announced that it is adding Agha and Dardar to its Cyber Most Wanted and offering a reward of $100,000 for information that leads to their arrest.  Both individuals are believed to be residing in Syria.  Anyone with information is asked to contact their nearest FBI field office or U.S. Embassy or consulate.

“Cybercriminals cause significant damage and disruption around the world, often under the veil of anonymity,” said Assistant Director Trainor.  “As this case shows, we will continue to work closely with our partners to identify these individuals and bring them to justice, regardless of where they are.”

According to allegations in the second complaint, beginning in or around 2013, SEA members Dardar and Romar engaged in multiple conspiracies dedicated to an extortion scheme that involved hacking online businesses in the United States and elsewhere for personal profit.  Specifically, the complaint alleges that the conspiracy would gain unauthorized access to the victims’ computers and then threaten to damage computers, delete data or sell stolen data unless the victims provided extortion payments to Dardar and/or Romar.  In at least one instance, Dardar attempted to use his affiliation with the SEA to instill fear into his victim.  If a victim could not make extortion payments to the conspiracy’s Syrian bank accounts due to the Syrian Sanctions Regulations or other international sanctions regulations, Romar would act as an intermediary in an attempt to evade those sanctions.

“These three members of the Syrian Electronic Army targeted and compromised computer systems in order to provide support to the Assad regime as well as for their own personal monetary gain through extortion,” said Assistant Director in Charge Abbate.  “As a result of a thorough cyber investigation, FBI agents and analysts identified the perpetrators and now continue to work with our domestic and international partners to ensure these individuals face justice in the United States.  I want to thank the dedicated FBI personnel, federal prosecutors, and our law enforcement partners for their tremendous efforts to ensure on-line criminal activity is countered, U.S. cyber infrastructure is safeguarded, and violators are held accountable under the law.”

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John P. Carlin, Assistant Attorney General for National Security; James Trainor, Assistant Director of the FBI’s Cyber Division; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the charges were unsealed.

The case is being investigated by the FBI’s Washington Field Office, with assistance from the NASA Office of the Inspector General, Department of State Bureau of Diplomatic Security and other law enforcement agencies.  The case is being prosecuted by Assistant U.S. Attorneys Jay V. Prabhu and Maya D. Song of the Eastern District of Virginia, and Special Assistant U.S. Attorney Brandon Van Grack and Trial Attorneys Scott McCulloch and Nathan Charles of the National Security Division’s Counterintelligence and Export Control Section.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 1:14-mj-292, and 1:14-mj-498.

Criminal complaints contain allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.

Two Fugitives Believed to be in Syria Added to FBI Cyber’s Most Wanted

Three Syrian nationals, all current or former members of the Syrian Electronic Army (SEA), were charged with multiple conspiracies related to computer hacking, according to two criminal complaints unsealed today in the U.S. District Court of the Eastern District of Virginia. 

The announcement was made by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Assistant Director James Trainor of the FBI’s Cyber Division and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office.

Ahmad Umar Agha, 22, known online as “The Pro,” and Firas Dardar, 27, known online as “The Shadow,” were charged with a criminal conspiracy relating to: engaging in a hoax regarding a terrorist attack; attempting to cause mutiny of the U.S. armed forces; illicit possession of authentication features; access device fraud; unauthorized access to, and damage of, computers; and unlawful access to stored communications.  Dardar and Peter Romar, 36, also known as Pierre Romar, were separately charged with multiple conspiracies relating to: unauthorized access to, and damage of, computers and related extortionate activities; receiving the proceeds of extortion; money laundering; wire fraud; violations of the Syrian Sanctions Regulations; and unlawful interstate communications.  The court has issued arrest warrants for all three defendants. 

According to allegations in the first complaint, beginning in or around 2011, Agha and Dardar engaged in a multi-year criminal conspiracy under the name “Syrian Electronic Army” in support of the Syrian Government and President Bashar al-Assad.  The conspiracy was dedicated to spear-phishing and compromising the computer systems of the U.S. government, as well as international organizations, media organizations and other private-sector entities that the SEA deemed as having been antagonistic toward the Syrian Government.  When the conspiracy’s spear-phishing efforts were successful, Agha and Dardar would allegedly use stolen usernames and passwords to deface websites, redirect domains to sites controlled or utilized by the conspiracy, steal email and hijack social media accounts.  For example, starting in 2011, the conspirators repeatedly targeted computer systems and employees of the Executive Office of the President (EOP).  Despite these efforts, at no time was an EOP account or computer system successfully compromised.  Additionally, in April 2013, a member of the conspiracy compromised the Twitter account of a prominent media organization and released a tweet claiming that a bomb had exploded at the White House and injured the President.  In a later 2013 intrusion, through a third-party vendor, the conspirators gained control over a recruiting website for the U.S. Marine Corps and posted a defacement encouraging U.S. marines to “refuse [their] orders.”

Today, the FBI announced that it is adding Agha and Dardar to its Cyber Most Wanted and offering a reward of $100,000 for information that leads to their arrest.  Both individuals are believed to be residing in Syria.  Anyone with information is asked to contact their nearest FBI field office or U.S. Embassy or consulate.

According to allegations in the second complaint, beginning in or around 2013, SEA members Dardar and Romar engaged in multiple conspiracies dedicated to an extortion scheme that involved hacking online businesses in the United States and elsewhere for personal profit.  Specifically, the complaint alleges that the conspiracy would gain unauthorized access to the victims’ computers and then threaten to damage computers, delete data or sell stolen data unless the victims provided extortion payments to Dardar and/or Romar.  In at least one instance, Dardar attempted to use his affiliation with the SEA to instill fear into his victim.  If a victim could not make extortion payments to the conspiracy’s Syrian bank accounts due to the Syrian Sanctions Regulations or other international sanctions regulations, Romar would act as an intermediary in an attempt to evade those sanctions.

“The Syrian Electronic Army publicly claims that its hacking activities are conducted in support of the embattled regime of Syrian President Bashar al-Assad,” said Assistant Attorney General Carlin.  "While some of the activity sought to harm the economic and national security of the United States in the name of Syria, these detailed allegations reveal that the members also used extortion to try to line their own pockets at the expense of law-abiding people all over the world.  The allegations in the complaint demonstrate that the line between ordinary criminal hackers and potential national security threats is increasingly blurry.”

“The tireless efforts of U.S. prosecutors and our investigative partners have allowed us to identify individuals who have been responsible for inflicting damage on U.S. government and private entities through computer intrusions,” said U.S. Attorney Boente.  “Today’s announcement demonstrates that we will continue to pursue these individuals no matter where they are in the world.”

“Cybercriminals cause significant damage and disruption around the world, often under the veil of anonymity,” said Assistant Director Trainor.  “As this case shows, we will continue to work closely with our partners to identify these individuals and bring them to justice, regardless of where they are.”

“These three members of the Syrian Electronic Army targeted and compromised computer systems in order to provide support to the Assad regime as well as for their own personal monetary gain through extortion,” said Assistant Director in Charge Abbate.  “As a result of a thorough cyber investigation, FBI agents and analysts identified the perpetrators and now continue to work with our domestic and international partners to ensure these individuals face justice in the United States.  I want to thank the dedicated FBI personnel, federal prosecutors, and our law enforcement partners for their tremendous efforts to ensure on-line criminal activity is countered, U.S. cyber infrastructure is safeguarded, and violators are held accountable under the law.”

The case is being investigated by the FBI’s Washington Field Office, with assistance from the NASA Office of the Inspector General, Department of State Bureau of Diplomatic Security and other law enforcement agencies.  The case is being prosecuted by Assistant U.S. Attorneys Jay V. Prabhu and Maya D. Song of the Eastern District of Virginia, and Special Assistant U.S. Attorney Brandon Van Grack and Trial Attorneys Scott McCulloch and Nathan Charles of the National Security Division’s Counterintelligence and Export Control Section.

Agha and Dardar Complaint

Romar and Dardar Complaint

ALEXANDRIA, Va. – Coastal International Security, Inc., based in Upper Marlboro, Maryland, agreed to pay a total of $1.65 million to resolve criminal and civil allegations that the company defrauded the State Department during performance of a security contract and later concealed the fraud from contracting officials, and civil allegations that the company improperly obtained and used competitors’ pricing information to underbid competitors on government task orders.

The government’s investigation focused on the relationship between Marvin Hulsey, a former program manager for Coastal International Security, and Tony Chandler, a former contracting official of the State Department. According to court documents, Hulsey and Chandler conspired together to submit false invoices to the State Department for unallowable costs of nutritional supplements. Chandler, as an authorized distributor of the nutritional supplements, received commissions from the approximate $170,000 in fraudulent nutritional supplement billings. Independent of this scheme, Hulsey admitted to causing approximately $140,000 in additional fraudulent billings through a company owned by his wife.

The government discovered during its investigation that Curtis Wrenn, in his capacity as president of Coastal International Security, learned of Hulsey’s and Chandler’s nutritional supplement scheme.  Wrenn knew that he had a responsibility under the Federal Acquisition Regulation to timely disclose to the government credible evidence of fraud, but instead intentionally omitted facts related to the fraud from a letter delivered to the State Department.

Chandler and Wrenn both pleaded guilty on June 12, 2015, and were both sentenced on Sept. 18, 2015. Chandler was sentenced to six months in prison, while Wrenn was sentenced to one year of probation for the false statement to the State Department.  Hulsey pleaded guilty on July 24, 2015, and was sentenced on Oct. 30, 2015, to one year and one day in prison and two years of supervised release.

Under the terms of the agreement entered into between Coastal International Security and the United States to resolve the criminal allegations, the United States agreed not to bring criminal charges against the company related to the conduct that is the subject of the agreement in part because of the significant changes to the company’s ethics and compliance program.  Coastal International Security has agreed to accept responsibility for the conduct of its former employees, continue its cooperation with federal investigators, pay a monetary penalty of $150,000 and maintain an effective ethics and compliance program, with particular attention to employee training, federal reporting requirements for suspected fraud, and whistleblower protection.  The U.S. Attorney’s Office may seek to prosecute Coastal International Security for the admitted conduct of its employees, or to assess a further penalty of up to $500,000 if during the two year term of the criminal agreement, an executive management official commits federal crimes as outlined in the agreement, and the company fails to report the misconduct to the U.S. Attorney’s Office.    

Coastal International Security simultaneously agreed to pay $1.5 million to resolve civil claims under the False Claims Act for the above conduct, as well as claims under the Procurement Integrity Act arising out of Coastal International Security’s knowledge and use of a competitor’s publicly unavailable bid proposal information.  The competitor’s information allegedly enabled Coastal International Security to underbid the competition on bids that Coastal International Security made between Nov. 4, 2008, and Oct. 7, 2011, in connection with various Department of State task orders.

The civil claims settled by Coastal International Security and the United States are allegations only. There has been no determination of civil liability.  The resolutions obtained were the result of parallel investigations by the criminal and civil divisions of the U.S. Attorney’s Office for the Eastern District of Virginia.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Steve A. Linick, Inspector General for the U.S. Department of State and Broadcasting Board of Governors; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the agreements were released.  Special Assistant U.S. Attorney Brian D. Harrison and Assistant U.S. Attorney Grace L. Hill prosecuted the criminal case.  Assistant U.S. Attorney Gerard Mene handled the civil case.

This case was investigated by the U.S. Department of State, Office of Inspector General (DOS-OIG) and the FBI’s Washington Field Office. Substantial assistance was provided by the Criminal Analysis Branch of the DOS-OIG.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-137 and 1:15-cr-150.

NORFOLK, Va. – Larry Carl Homan, 71, of Norfolk, was sentenced today to 300 months in prison and lifetime supervised release for production of child pornography.

Homan pleaded guilty on Dec. 21, 2015.  According to court documents, in May 2015, a concerned parent complained to her daughter’s school that Homan, a school bus driver in Chesapeake, had acted inappropriately towards her daughter.  A review of the surveillance footage from Homan’s school bus resulted in Homan being suspended without pay.  The Chesapeake Police Department (CPD) became involved and executed a search warrant at Homan’s residence in Norfolk.  A number of electronic devices were seized from Homan’s apartment.  The CPD analyzed the electronic devices and found that Homan had been producing child pornography inside his apartment in Norfolk.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Norfolk; Michael Goldsmith, Chief of Norfolk Police; and Col. K.L. Wright, Chief of Chesapeake Police, 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 may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-129.

ALEXANDRIA, Va. – Joseph Hassan Farrokh, 28, of Woodbridge, pleaded guilty today to conspiring to provide material support and resources to a foreign terrorist organization, namely the Islamic State of Iraq and the Levant (ISIL).

In a statement of facts filed with the plea agreement, beginning in or about August 2015, and continuing through January 15, 2016, Farrokh conspired with Mahmoud Amin Elhassan, 25, of Woodbridge, to travel from the United States to Syria in order to fight with ISIL. As part of their plan, Farrokh would travel first, followed by Elhassan at a later date. Farrokh and Elhassan spoke in detail about their potential travel, including discussing the different routes each would take to travel to Syria. Farrokh also provided $600 to Elhassan to aid in Elhassan’s future travel to Syria.  Both men spoke openly with each other about supporting ISIL and supporting violent jihad, with Farrokh saying on Oct. 2, 2015, that he had no patience and wanted to go right away and “chop their heads.” 

According to the statement of facts, in an effort to conceal their plans to support ISIL, Farrokh and Elhassan communicated in a manner in which they thought they could not be detected by law enforcement, such as using apps they believed were safe from law enforcement detection.  In the summer 2015, Farrokh and Elhassan talked more seriously about going to join ISIL. When Farrokh and Elhassan discussed ways to reach ISIL, they concluded that they needed someone to help them do so.

According to the statement of facts, from November 2015 through Jan. 15, 2016, Farrokh and Elhassan conspired with other persons they believed would help facilitate their travel to Syria. Over the course of many meetings, the men discussed in detail their travel plans and efforts to avoid law enforcement detection, including having Farrokh shave his beard and to fly out of Richmond International Airport to avoid what Farrokh believed to be stricter law enforcement scrutiny at Reagan National Airport.  Farrokh and Elhassan agreed that Farrokh should tell his family that he intended to travel to Saudi Arabia to study.

On Jan. 15, 2016, Elhassan picked up Farrokh at his home in Woodbridge and drove him to Richmond to a location approximately one mile from the airport. Farrokh then took another cab to the airport, checked in for his flight, cleared security and was arrested as he was approaching his departure gate.

Farrokh was charged by criminal complaint on Jan. 16, 2016, and faces a maximum penalty of 20 years in prison when sentenced on July 15, 2016. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John Carlin, Assistant Attorney General for National Security; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Anthony J. Trenga.  The case is being prosecuted by Assistant U.S. Attorneys Gordon D. Kromberg and Dennis M. Fitzpatrick, along with Trial Attorney D. Andrew Sigler of the Justice Department’s National Security Division’s Counterterrorism Section. The FBI’s Joint Terrorism Task Force is investigating the case.  

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-20.

An Annandale, Virginia, man was sentenced today to 10 years in prison to be followed by 10 years of supervised release for sex trafficking of a minor.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office and Colonel Edwin C. Roessler Jr., Chief of the Fairfax County, Virginia, Police Department, made the announcement.

Ismael Antonio Mendez, 20, pleaded guilty on Dec. 29, 2015, to sex trafficking of a minor.  Mendez will be required to register as a sex offender.

In connection with his plea, Mendez admitted that from at least November 2014 through February 2015, he and two adult co-conspirators recruited a 15-year-old girl to engage in commercial sex acts to pay off a debt that Mendez owed to one of the co-conspirators.  The adults taught the girl how to prostitute, took photos of her to use in ads and created commercial sex ads that were posted on the Internet, he admitted.  Mendez admitted that the co-conspirators knew that the girl was a minor and instructed her to lie about her age to customers.  According to Mendez’s plea, over a three-month period, the co-conspirators traveled with the girl throughout Virginia, in New York and every state in between for the purposes of advertising and engaging the girl in commercial sex.  Mendez admitted that during that time period, the defendants prostituted the girl every day, with an average of 10 to 12 customers a night until she earned enough to repay Mendez’s debt, at which point she was directed to leave the co-conspirators.

Trial Attorney Lauren Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Whitney Dougherty Russell of the Eastern District of Virginia prosecuted the case.

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

ALEXANDRIA, Va. – Ismael Antonio Mendez, 20, of Annandale, was sentenced today to 120 months in prison and 10 years of supervised release for sex trafficking of a minor. Mendez was also ordered to register as a sex offender upon release from prison.

Mendez pleaded guilty on Dec. 29, 2015. According to court documents, Mendez admitted that from at least November 2014 through February 2015, he and two adult co-conspirators recruited a 15-year-old girl to engage in commercial sex acts to pay off a debt that Mendez owed to one of the co-conspirators.  The adults taught the girl how to prostitute, took photos of her to use in ads and created commercial sex ads that were posted on the Internet, he admitted.  Mendez admitted that the co-conspirators knew that the girl was a minor and instructed her to lie about her age to customers.  According to Mendez’s plea, over a three-month period, the co-conspirators traveled with the girl throughout Virginia, in New York and every state in between for the purposes of advertising and engaging the girl in commercial sex.  Mendez admitted that during that time period, the defendants prostituted the girl every day, with an average of 10 to 12 customers a night until she earned enough to repay Mendez’s debt, at which point she was directed to leave the co-conspirators.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and Colonel Edwin C. Roessler Jr., Chief of the Fairfax County Police Department, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.  Assistant U.S. Attorney Whitney Dougherty Russell and Special Assistant U.S. Attorney Lauren Britsch prosecuted the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-349.

Joseph Hassan Farrokh, 28, of Woodbridge, Virginia, pleaded guilty today to conspiring to provide material support and resources to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.  The plea was accepted by U.S. District Judge Anthony J. Trenga of the Eastern District of Virginia. 

The plea was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office.

According to a statement of facts filed with the plea agreement, beginning in or about August 2015, and continuing through Jan. 15, 2016, Farrokh conspired with Mahmoud Amin Elhassan, 25, of Woodbridge, to travel from the United States to Syria in order to fight for, and at the direction of, ISIL.  As part of their plan, Farrokh would travel first, followed by Elhassan at a later date.  Farrokh and Elhassan spoke in detail about their potential travel, including discussing the different routes each would take to travel to Syria.  Farrokh also provided $600 to Elhassan to aid in Elhassan’s future travel to Syria.  Both men spoke openly with each other about supporting ISIL and supporting violent jihad, with Farrokh saying on Oct. 2, 2015, that he had no patience and wanted to go right away and “chop their heads.” 

According to the statement of facts, in an effort to conceal their plans to support ISIL, Farrokh and Elhassan communicated in a manner in which they thought they could not be detected by law enforcement, such as using apps they believed were safe from law enforcement detection.  In the summer 2015, Farrokh and Elhassan talked more seriously about going to join ISIL.  When Farrokh and Elhassan discussed ways to reach ISIL, they concluded that they needed someone to help them do so.  

According to the statement of facts, from November 2015 through Jan. 15, 2016, Farrokh and Elhassan spoke with other persons they believed would help facilitate their travel to Syria.  Two of the individuals Farrokh spoke to were, in fact, sources for the FBI.  Over the course of many meetings, the men discussed in detail their travel plans and efforts to avoid law enforcement detection, including having Farrokh shave his beard and to fly out of Richmond International Airport, to avoid what Farrokh believed to be stricter law enforcement scrutiny at larger airports.  Farrokh and Elhassan agreed that Farrokh should tell his family that he intended to travel to Saudi Arabia to study.

On Jan. 15, 2016, Elhassan picked up Farrokh at his home in Woodbridge and drove him to Richmond to a location approximately one mile from the airport.  Farrokh then took another cab to the airport, checked in for his flight, cleared security and was arrested as he was approaching his departure gate.

Farrokh was charged by criminal complaint on Jan. 16, 2016, and faces a maximum penalty of 20 years in prison when sentenced on July 15, 2016.  The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

The case is being investigated by the FBI’s Joint Terrorism Task Force.  The case is being prosecuted by Assistant U.S. Attorneys Gordon Kromberg and Dennis Fitzpatrick of the Eastern District of Virginia, along with Trial Attorney D. Andrew Sigler of the National Security Division’s Counterterrorism Section. 

Farrokh Plea Agreement

Farrokh Statement of Facts

A California man was sentenced to 216 months in prison today for two counts of conspiracy to commit wire fraud and one count of conspiracy to commit international money laundering in connection with an international “pump and dump” scheme involving stocks traded on the over-the-counter (OTC) market.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office made the announcement.

Harold Bailey Gallison II, 58, of Valley Center, California, pleaded guilty on Dec. 10, 2015, and was sentenced by U.S. District Judge Anthony J. Trenga of the Eastern District of Virginia, who also ordered Gallison to pay $1,724,770 in restitution.  Gallison was charged in an indictment unsealed on July 14, 2015, along with eight other individuals for their roles in complex international stock manipulation and money laundering schemes.

In his guilty plea, Gallison admitted that he conspired to artificially “pump” or inflate the trading volume and price of the shares of Warrior Girl Corp., quoted on the OTC market under the ticker symbol WRGL, and Everock Inc., quoted on the OTC market under the ticker symbol EVRN, by touting business activities and deceptive revenue forecasts and by engaging in coordinated trading activity to create the appearance of increasing market demand.  Gallison also admitted that he and others then “dumped” or sold the shares at the inflated prices and laundered proceeds through bank accounts in the United States and overseas.  Gallison facilitated the schemes through an offshore brokerage and money laundering platform that went by various names, including Sandias Azucaradas, Moneyline Brokers and Trinity Asset Services (collectively Moneyline), he admitted.  According to the plea, through Moneyline, Gallison created nominee accounts in the names of shell companies to conceal both the true source and ownership of the securities and the flow of funds.  In addition, Gallison pleaded guilty to one count of conspiring to launder the proceeds of a number of securities fraud schemes, including Warrior Girl and Everock, totaling more than $25 million. 

The FBI’s Washington Field Office is investigating the case.  Senior Trial Attorney N. Nathan Dimock and Trial Attorney Michael O’Neill of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kosta S. Stojilkovic of the Eastern District of Virginia are prosecuting the case.  The Securities and Exchange Commission, the Financial Industry Regulatory Authority and the Criminal Division’s Office of International Affairs also provided significant assistance.  

ALEXANDRIA, Va. – Harold Bailey Gallison II, 58, of Valley Center, California, was sentenced today to 18 years in prison for two counts of conspiracy to commit wire fraud and one count of conspiracy to commit international money laundering in connection with an international “pump and dump” scheme involving stocks traded on the over-the-counter (OTC) market. Gallison was also ordered to forfeit more than $1.7 million.

Gallison pleaded guilty on Dec. 10, 2015. According to court documents, Gallison admitted that he conspired to artificially “pump” or inflate the trading volume and price of the shares of Warrior Girl Corp., quoted on the OTC market under the ticker symbol WRGL, and Everock Inc., quoted on the OTC market under the ticker symbol EVRN, by touting business activities and deceptive revenue forecasts and by engaging in coordinated trading activity to create the appearance of increasing market demand.  Gallison also admitted that he and others then “dumped” or sold the shares at the inflated prices and laundered proceeds through bank accounts in the United States and overseas.  Gallison facilitated the schemes through an offshore brokerage and money laundering platform that went by various names, including Sandias Azucaradas, Moneyline Brokers and Trinity Asset Services (collectively Moneyline), he admitted.  According to the plea, through Moneyline, Gallison created nominee accounts in the names of shell companies to conceal both the true source and ownership of the securities and the flow of funds.  In addition, Gallison pleaded guilty to one count of conspiring to launder the proceeds of a number of securities fraud schemes, including Warrior Girl and Everock, totaling more than $25 million. 

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga.

Assistant U.S. Attorney Kosta Stojilkovic, Senior Trial Attorney N. Nathan Dimock and Trial Attorney Michael O’Neill of the Criminal Division’s Fraud Section prosecuted the case. Assistant U.S. Attorneys James P. Gillis and G. Zachary Terwilliger assisted in the prosecution. The FBI’s Washington Field Office investigated the case, while the Securities and Exchange Commission, the Financial Industry Regulatory Authority and the Criminal Division’s Office of International Affairs provided significant assistance. 

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-178.

ALEXANDRIA, Va. – Linda Diane Wallis, aka Lynn Wallis Miller, 51, of Fairfax, was sentenced today to 56 months in prison for her role in three fraud schemes totaling over $1.4 million in losses, including embezzling $653,000 from Virginia State Senator Richard Saslaw’s campaign fund. Wallis was also ordered to pay restitution in the amount of $1,429,599.

“Those who abuse a position of public and private trust by engaging in sophisticated fraud schemes will be held accountable for their actions,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “This prosecution should serve as a deterrent to anyone contemplating similar theft for their own benefit.” 

Wallis pleaded guilty on Oct. 15, 2015. According to court documents, Wallis participated in three separate fraud schemes from in or around January 2013 through in or around February 2014. In the first scheme, Wallis, along with a co-conspirator, D.M., created two fraudulent companies, the first known as Federal Legal Associates, and the second was The Straile Group. Through various methods including fraudulent wire transfers and checks, Wallis caused approximately $368,400 in loss to Company A.

The second scheme involved the embezzlement of approximately $653,000 from the campaign account of Senator Saslaw. From June 2013 to September 2014, Wallis served as the treasurer of the Saslaw for State Senate campaign. During that time, Wallis issued or caused to be issued, approximately 73 fraudulent checks from the Saslaw for State Senate campaign bank account, which totaled approximately $653,000.  Wallis made the checks payable to the aforementioned Federal Legal Associates, The Straile Group, and herself.  All of the checks were issued without knowledge or permission of Senator Saslaw or his campaign staff, and were deposited into accounts she independently controlled or that were jointly controlled with co-conspirator D.M.

The third scheme involved misuse of funds from a charitable organization, of which Wallis was Executive Director, and co-conspirator D.M., co-founded. The Community College Consortium on Autism and Intellectual Disabilities (CCCAID) claimed to provide assistance to community colleges for program development and implementation and information on the availability of resources for sustainability of programs.  Wallis and D.M. marketed CCCAID as a non-profit entity, but they never applied for non-profit status for the organization.  In April 2010, Wallis established CCCAID’s bank account, and between April 2010 and April 2013, community colleges located around the country contributed approximately $293,000 to CCCAID.  Additionally, a Bulgarian businessman associated with co-conspirator D.M. donated $500,000 to CCCAID.  The funds contributed to CCCAID were to be used to further the mission of the organization and not to enrich Wallis or co-conspirator D.M.  Despite these restrictions, from April 2010 to August 2014, Wallis authorized approximately $482,000 in transfers from CCCAID’s account to other bank accounts Wallis and co-conspirator D.M. controlled.  A significant percentage of the $482,000 CCCAID was used to pay Wallis’ and co-conspirator D.M.’s personal expenses, such as mortgage payments, expenses related to food and restaurants, merchandise purchases, and a vacation. 

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge T.S. Ellis III.  Assistant U.S. Attorney Uzo Asonye prosecuted the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-285.

NORFOLK, Va. – LaCharles Hodges, a/k/a “Boogie,” 28, and Charles Battle, a/k/a “C.J.,” 37, of Portsmouth, Virginia, pleaded guilty this week for their involvement in a Portsmouth-based crack cocaine trafficking operation.  Norman Stephenson, 35, pleaded guilty February 3, 2016.  All were members of the “Corna Sto Boys,” a group formed in the late 1990s by individuals who were distributing crack cocaine near the corner of Elm Avenue and Fayette Street in Portsmouth, Virginia.  An affiliate of the group, Samuel Gray, a/k/a “Pig,” 35, also pleaded guilty today to conspiring to distribute crack cocaine. 

According to court documents, the “Corna Sto Boys” most recently dealt crack cocaine around an intersection across the street from Brighton Elementary School in Portsmouth.  The Portsmouth Police Department has identified over 30 individuals affiliated with the group, several of whom are currently being prosecuted by the Portsmouth Commonwealth Attorney’s Office.  In August 2015, the Portsmouth Police Department conducted 17 controlled purchases of crack cocaine from members of the organization.

Hodges, who pleaded guilty today, was one of the group’s primary suppliers of cocaine.  During a six-month period in 2014, he distributed approximately 30 kilograms of the drug.  Hodges was a supplier for several drug trafficking organizations in Hampton Roads, including one led by twin brothers Jason and Jeremy Saunders, who were federally prosecuted last year. 

Hodges and Gray face a mandatory minimum sentence of 10 years in prison and a maximum of life in prison. Battle and Stephenson face a mandatory minimum sentence of 20 years in prison and a maximum of life in prison.  The statutory sentences are prescribed by Congress and are provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Karl C. Colder, Special Agent in Charge of Drug Enforcement Administration (DEA) Washington Field Division; John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office; and Tonya D. Chapman, Chief of the Portsmouth Police Department, made the announcement after Hodges’ plea was accepted by U.S. Magistrate Judge Lawrence Leonard.  Assistant U.S. Attorneys Andrew C. Bosse and Joseph E. DePadilla, and Special Assistant U.S. Attorney John F. Butler, are prosecuting the cases.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 2:16-cr-16 (Stephenson); 2:16-cr-19(Gray); 2:16-cr-3 (Battle); and 2:16cr18 (Hodges). 

ALEXANDRIA, Va. –Jonathan Ernesto Godoy, 26, of Fredrick, Maryland, was sentenced today to 190 months in prison for his involvement in two firebombings of the Loudoun County Department of Community Corrections building.

Godoy pleaded guilty on Nov. 9, 2015, to arson affecting interstate commerce and using fire or an explosive device in the commission of a federal felony.  According to court documents and court proceedings, in the fall of 2012, Godoy was on supervised probation in Loudoun County stemming from a possession of narcotics charges.  In danger of violating his conditions of probation due to missed appointments, adulterated urine samples, and positive drug tests, Godoy, along with a co-conspirator, made two destructive devices using glass bottles, gasoline, and scraps of cotton t-shirt, commonly known as “Molotov cocktails,” and attempted to throw both devices into Godoy’s probation officer’s window. At least one of the devices exploded inside of the Loudoun County Department of Corrections building and caused severe fire damage.  The fire, which occurred during the early morning hours of Nov. 14, 2012, caused such destruction that the occupants of the building had to move to an alternate location.  The fire caused over $300,000 in property damage and relocation costs.

In July 2014, Godoy was served with four felony state warrants related to the fire at the probation office, and he was incarcerated at the Loudoun County Adult Detention Center.  While there, in a series of telephone calls and letters, Godoy expressed his belief that if his friend and a Loudoun County Assistant Fire Marshal, who was involved in the investigation, were eliminated as witnesses, then the criminal case against him would collapse.  Thereafter, Godoy solicited a fellow inmate to murder the two.  Unbeknownst to Godoy, however, the fellow inmate was cooperating with law enforcement and kept them informed of Godoy’s plot.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Linda Hale, Chief Fire Marshal, Loudoun County Department of Fire, Rescue, and Emergency Management; and Michael F. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga.  Assistant U.S. Attorneys Michael E. Rich and William M. Sloan prosecuted the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-260.

NORFOLK, Va. – Raymond Wyche, 47, of Chesapeake, was sentenced today to the maximum possible penalty, 51 months in prison, for his role in eight armed robberies in Virginia Beach and Chesapeake. 

Wyche pleaded guilty on Dec. 3, 2015.  The date and location of the eight armed robberies are listed in the table below.

Date

Location

Feb. 11, 2014

7-Eleven, 6673 Indian River Road, Virginia Beach

March 19, 2014

Wilco-Hess, 6048 Indian River Road, Virginia Beach

March 25, 2014

7-Eleven, 201 S. Witchduck Road, Virginia Beach

April 25, 2014

Exxon, 841 S. Military Highway, Virginia Beach

June 6, 2014

BP, 4900 Princess Anne Road, Virginia Beach

June 25, 2014

Exxon, 1102 S. Military Highway, Chesapeake

June 29, 2014

7-Eleven, 5444 Virginia Beach Boulevard, Virginia Beach

July 16, 2014

Gulf, 6029 Indian River Road, Virginia Beach

 

According to court documents, on March 19, 2014, Wyche entered the Wilco-Hess gas station located on Indian River Road in Virginia Beach, brandishing what looked like a real firearm at two employees and demanded that they give him all the money in the cash registers.  The employees complied and gave him the money in the cash registers which totaled approximately $376.   

On June 25, 2014, Wyche entered an Exxon gas station in Chesapeake and brandished what looked like a real firearm at the employee and demanded that she give him all the money in the cash registers.   The employee complied and gave the defendant the money in the cash registers which totaled approximately $275.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; and Michael F. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge Mark S. Davis. 

This case was investigated by ATF’s Washington Field Division with assistance from the Chesapeake and Virginia Beach Police Departments.  Assistant U.S. Attorney William D. Muhr and Special Assistant U.S. Attorney John F. Butler prosecuted the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-97.

RICHMOND, Va. – Deontae Jamar Hargrave, 23, of Petersburg, was sentenced today to 237 months in prison for two separate offenses, including robbery affecting interstate commerce, and using, possessing, carrying, brandishing and discharging a firearm in furtherance of a crime of violence.

Hargrave was indicted by a federal grand jury on March 4, 2015.  According to court documents, on Nov. 3, 2014, Hargrave robbed a 7-Eleven convenience store in Petersburg and brandished a .40 caliber firearm.  Hargrave threatened the cashier with the firearm and demanded the funds in the cash register.  When they cashier paused, Hargrave raised the firearm next to the cashier and fired a round into a display case behind the clerk.  Hargrave obtained approximately $40 and three packs of cigarettes from the robbery.  Subsequently, Hargrave sent a threatening letter which was the subject of testimony at the sentencing hearing.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael F. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Office; and John I. Dixon III, Chief of Petersburg Bureau of Police, made the announcement after sentencing by U.S. District Judge Robert E. Payne.  Assistant U.S. Attorney S. David Schiller prosecuted the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15-cr-37.