Eastern District of Virginia

NORFOLK, Va. – Christopher Salkey, 31, of Suffolk, pleaded guilty today to charges of conspiracy to distribute heroin and possessing a firearm as a convicted felon.

In a statement of facts filed with the plea agreement, in the summer of 2012 up to May 2015, Salkey conspired with his father and two others to distribute heroin in Suffolk and Portsmouth.  Each week Salkey (who has a previous conviction for selling narcotics) and his father would receive a significant quantity of heroin to which they would add a cutting agent and then cap it up for distribution.  During the course of the conspiracy it is estimated they distributed at least eight kilograms of heroin.  On May 20, 2015, the Suffolk Police Department and federal agents from the Drug Enforcement Administration (DEA) executed a search warrant at Salkey’s residence in Suffolk where they recovered a quantity of heroin and packaging material used for distribution. Additionally, agents also discovered a marijuana grow operation with 129 marijuana plants.  Law enforcement later learned Salkey had hidden two firearms in the residence, which agents later recovered.

Salkey was charged by criminal complaint on Sept. 18, 2015. He faces a maximum penalty of life in prison and a mandatory minimum sentence of 10 years in prison when sentenced on Feb. 18, 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 DEA’s Washington Field Division, made the announcement after the plea was accepted by U.S. District Judge Arenda L. Wright Allen.  Assistant U.S. Attorneys William D. Muhr and V. Kathleen Dougherty 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. 2:15cr135.

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NORFOLK, Va. – Jeffery R. Henry, 30, of Portsmouth, was sentenced today to 36 months in prison for his role in a conspiracy to distribute and possess with intent to distribute heroin.

Henry was an associate of the Portsmouth based Gorilla Mafia Bloods, a street gang led by Theodore M. Vann, aka Flatline, 32, and Antwane L. Williams, aka Neno, 26. All three men were indicted by a federal grand jury on May 17, 2015. Vann and Williams pleaded guilty in June 2015, while Henry pleaded guilty in July 2015. Williams was sentenced to 10 years in prison on Sept. 24, 2015.  Vann is scheduled to be sentenced on Nov. 16, 2015.

According to court documents, Henry distributed heroin and other narcotics in the Ghent area of Norfolk, Portsmouth, and other places throughout the Eastern District of Virginia.  Henry also traveled to Richmond, Petersburg, and New Jersey with his co-conspirators on multiple occasions to test the purity of the supply of heroin to ensure that it was a good product for resale.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General 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 Raymond A. Jackson.

This case was investigated jointly by the FBI’s Norfolk Field Office and the Chesapeake and Portsmouth Police Departments.  Virginia Assistant Attorney General and Special Assistant U.S. Attorney John F. Butler, and Assistant U.S. Attorneys Joseph E. DePadilla and Andrew C. Bosse 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-60.                                                         

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NORFOLK, Va. – Cornelius J. Gaymon, 35, of Norfolk, a 10-time convicted felon, was sentenced today to 151 months in prison for possession with intent to distribute heroin.  Co-conspirator Tedrick O. Speller, 33, of Norfolk, was sentenced to 84 months in prison on Oct. 5, 2015.

Gaymon pleaded guilty on June 24, 2015, and Tedrick Speller pleaded guilty on June 23, 2015.  According to court documents, law enforcement officers conducted several undercover purchases of crack cocaine from Speller before executing a search warrant on his residence in the Berkley neighborhood of Norfolk.  Nearly 40 officers from Norfolk’s Special Operations Team and Vice and Narcotics division participated in the execution of the warrant and recovered over $32,000 worth of heroin, crack cocaine, cocaine, and marijuana.  Officers also seized digital scales, drug packaging materials, several thousand dollars, and five firearms.  One firearm was stolen, another had a high capacity extended magazine, and another weapon’s serial number was obliterated.  Speller also maintained a storage unit, which contained nearly $50,000.  In Gaymon’s room, officers recovered a Black-Bull industrial size, six-ton hydraulic press machine used to “cut” and re-press heroin and other narcotics with cutting agents to expand volume and profitability.

Gaymon, a former Bloods gang member, attempted to escape from the arresting officers twice, once through a second floor window and again while in handcuffs.  He had recently been released from a six-year prison term for distributing cocaine.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; and Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.  Chief U.S. District Judge Rebecca Beach Smith sentenced Speller.

This case was investigated by the DEA High Intensity Drug Trafficking Area (HIDTA) Task Force with the assistance of the Norfolk Police Department.  Virginia Assistant Attorney General and Special Assistant U.S. Attorney John F. Butler and Assistant U.S. Attorney Andrew C. Bosse 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-66 (Gaymon) and 2:15-cr-67 (Speller).                                                     

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NORFOLK, Va. – Doriean Barberi, 37, of Greenville, South Carolina, was sentenced today to 188 months in prison for transporting a minor across state lines for prostitution purposes.

Barberi pleaded guilty on May 7, 2015. According to court documents, Barberi was first identified by the Virginia Beach Police Department in September 2014 after  Barberi had posted advertisements on the Internet for herself and a 17 year old minor offering their sexual services at a local hotel.  Upon being interviewed, Barberi and the minor confirmed that they drove into Virginia several days earlier and first worked in Suffolk before moving to Virginia Beach.  Barberi set up the appointments for the minor and the minor gave Barberi all of the money she was paid for having sex with customers.  Barberi used the money, in part, to promote her aspiring rap music career.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office; and James A. Cervera, Chief of Virginia Beach Police, made the announcement after sentencing by Senior U.S. District Judge Henry Coke Morgan, Jr.  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. 2:14-cr-162.

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NEWPORT NEWS, Va. – Michael Newman, 37 of Richmond, pleaded guilty today to charges of conspiring to distribute marijuana and ethylone.

According to a statement of facts filed with the plea agreement, Newman was located at a closed gas station in James City County on May 10, 2015, and found to be in possession of marijuana, ethylone, drug scales and more than $3,000 in cash. The marijuana and ethylone were both intended for distribution.

Newman was indicted by a federal grand jury on Aug. 10, 2015, and faces a maximum penalty of 20 years in prison when he is sentenced on Feb. 25, 2015. 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; David G. Bowers, Acting Inspector in Charge of the U.S. Postal Inspection Services’ Washington Division; and Bradley Rinehimer, Chief of James City County Police, made the announcement after the plea was accepted by U.S. Magistrate Judge Doulas E. Miller.  Assistant U.S. Attorney Eric M. Hurt 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. 4:15cr56.

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NORFOLK, Va. – David A. Parker, 49, of Virginia Beach, pleaded guilty today to evading income tax assessment and payment.

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.  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.

Parker faces a maximum penalty of five years in prison when sentenced on March 4, 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 Thomas Jankowski, Special Agent in Charge, Washington D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after the plea was accepted by U.S. District Judge Arenda L. Wright Allen.  Assistant U.S. Attorney V. Kathleen Dougherty 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. 2:15cr113.

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NORFOLK, Va. – Aaron Michael Burns, 26, of Norfolk, was sentenced today to 312 months in prison for production of child pornography.  In addition to the sentence of imprisonment, he was sentenced to a term of lifetime supervised release.

Burns pleaded guilty on July 8, 2015.  According to court documents, in June 2013, a three year-old girl was taken to a local emergency room because she claimed her live-in babysitter, defendant Burns, had touched her genitals.  Burns was arrested by Norfolk Police Department (NPD), but left his computer powered on at the victim’s residence.  The victim’s father saw a desktop folder on the computer labeled “child-sex.”  Subsequent to a search warrant, NPD searched and seized a number of Burns’ computer devices.  Forensic examinations by NPD and Homeland Security Investigations (HSI) revealed over 20 images of the victim engaging in sexually explicit conduct another set of sexually explicit images of an unidentified toddler, and numerous images that Burns downloaded from the Internet.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Clark E. Settles, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI); and Michael Goldsmith, Chief of Norfolk Police Department, made the announcement after sentencing by Chief U.S. District Judge Rebecca Beach Smith.  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. 2:14-cr-9.

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RICHMOND, Va. – Khadim Myboye Taylor, 29, of Richmond, pleaded guilty today to charges of possession of a weapon by a previously convicted felon.

In a statement of facts filed with the plea agreement, Taylor was a passenger in a vehicle driven by his co-defendant, Joshua Brooks, 28, of Richmond, when Richmond police officers stopped the vehicle for speeding.  After being asked to step out of the car for a pat down for weapons, Taylor attempted to flee and was observed by police dropping a .38 caliber pistol which was recovered.

Taylor was indicted by a federal grand jury on Aug. 4, 2015, and faces a mandatory minimum sentence of 15 years in prison when sentenced on Jan. 19, 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 Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after the plea was accepted by U.S. District Judge Henry E. Hudson.  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. 3:15cr135.

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NORFOLK, Va. – Edgar Brito, 21, of Virginia Beach, was sentenced today to 128 months in prison for the armed robbery of approximately $100,000 in cell phones from numerous businesses throughout Hampton Roads. Co-conspirator Daren Artis, 20, of Chesapeake, was sentenced to 128 months in prison on Sept. 17, 2015, and co-conspirator Alexander Horst, 23, of Virginia Beach, was sentenced to 110 months in prison on Sept. 21, 2015.

According to the statement of facts filed with the plea agreement, the men committed a string of armed robberies of stores that sold cellular phones, including Radio Shack on Colley Avenue in Norfolk on Dec. 2, 2014; T-Mobile on Tidewater Drive in Norfolk on Dec. 7, 2014; and a T-Mobile store on Phoenix Drive in Virginia Beach on Jan. 1, 2015.  During these robberies, the men entered the stores wearing masks and demanded employees at gunpoint to provide cash from the registers and cell phones.

As the three men fled from the Virginia Beach robbery they dropped one of their duffle bags, which contained stolen cell phones and a Greyhound bus ticket bearing Brito’s name.  Detectives from the Virginia Beach Police Department arrested Brito and he confessed to the armed robbery.  Nearly 40 cellular phones, a .357 handgun, and cash from the Virginia Beach armed robbery were recovered from the defendants.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the sentence was imposed by U.S. District Judge Mark S. Davis.

This case was investigated by the FBI’s Norfolk Field Office, and the Norfolk and Virginia Beach Police Departments.  U.S. Attorney William D. Muhr and Virginia Assistant Attorney General 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-46.                                                     

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NEWPORT NEWS, Va. – A Williamsburg attorney was arrested today on a federal indictment returned yesterday, charging her with participating in a conspiracy to commit mail and wire fraud, as well as numerous counts of mail fraud, wire fraud and aggravated identity theft related to the transfer of thousands of timeshare units into the names of stolen identities and straw owners. 

According to court documents and court proceedings, Deborah M. Wagner, 43, of Williamsburg, participated in a timeshare scheme with Keith Kosco, Julie Duffield, Brendan Hawkins and others. Keith Kosco owned and operated a number of entities involved in travel, tourism and timeshare businesses including Resort Realty, Inc., Resort Solutions, Inc., and Exotic Equity Transfers, LLC (EET). Brendan Hawkins owned and operated another timeshare transfer business known as GoodBye Timeshares (GoodBye). A timeshare unit, generally a fully furnished resort accommodation, is a deeded or non-deeded interest in real estate divided into intervals, most commonly by week.  Since at least 2007, EET and GoodBye conducted timeshare transfers in exchange for fees charged to the original owner. It was represented to the seller of the timeshare that clean title would pass to the new owner with no further obligations of timeshare ownership (including maintenance fees) on the original owner once the transfer was complete.

Transfer paperwork was handled by EET in coordination with Professional Closing Company which served as a third party closing entity, and was operated by co-defendant Julie Duffield.  In 2013, Wagner and her firm took over these duties for EET and had worked with Hawkins since at least 2011.  From at least 2009 – 2013, Kosco, Duffield, Hawkins, and their employees conducted fraudulent transfers of over 1,000 timeshare units into the names of stolen identities. The defendants collected fees for conducting the transfers from the original owners.  None of the stolen identities / straw buyers paid the required maintenance fees or taxes on the timeshare units, resulting in over $1,300,000 in losses to select resorts for the unpaid fees.  Kosco, Duffield, Hawkins, and their employees, engaged in various fraudulent acts in support of the scheme, including false statements and promises to resorts, propping up stolen identities with email accounts, bank accounts and tax returns, falsely notarizing signatures and preparing fraudulent deed paperwork. The transfers also had a devastating impact on the credit of the stolen identities/straw buyers. Wagner participated in the scheme from 2011 – 2013 working with both Kosco and Hawkins and their respective companies. It is alleged that she transferred many timeshare units into the names of stolen identities and straw owners, resulting in hundreds of thousands of dollars in losses to the affected resorts due to lost maintenance fees and taxes.

Julie Duffield pleaded guilty and was sentenced to 26 months in prison and ordered to pay restitution, jointly with Kosco, in excess of $740,000. Kosco pleaded guilty and was sentenced to 74 months in prison. In a related case, Brendan Hawkins pleaded guilty and was sentenced to 46 months in prison and ordered to pay more than $500,000 in restitution.

Wagner faces a maximum penalty of 20 years in prison if convicted on each of the mail and wire fraud counts and a mandatory minimum term of 24 months in prison on the aggravated identity theft charges. 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, made the announcement after Wagner’s initial appearance before U.S. District Magistrate Judge Lawrence R. Leonard. Assistant U.S. Attorneys Brian J. Samuels and Kaitlin C. 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. 4:15cr28.

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ALEXANDRIA, Va. – Jason Gregory Colley, 36, of Luray, was sentenced today to 96 months in prison for tampering with evidence for moving the body of a drug overdose victim. Colley was also ordered to pay $17,175.70 in restitution to the family of Jason Laytham, who died of a drug overdose, to cover funeral expenses.

Colley pleaded guilty on July 22, 2015.  According to court documents, on or about Sept. 12, 2014, Colley sold cocaine to Laytham, formerly of Leesburg, and another individual at an extended stay hotel in Ashburn. After using an additional quantity of drugs, Laytham and the other individual became unconscious. Colley dragged Laytham’s body out of the hotel suite (which Colley had rented using his own name) into a common area of the hotel before calling for paramedics. When law enforcement officers arrived the other individual was unconscious in Colley’s hotel suite. While the other individual survived, Laytham died from the adverse effects of cocaine and other substances.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael L. Chapman, Loudon County Sheriff; and Karl C. Colder, Special Agent in Charge of the DEA’s Washington Field Division, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.  Assistant U.S. Attorney Tobias D. Tobler and former Assistant U.S. Attorney Michael P. Ben’Ary 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-203.

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NORFOLK, Va. – Mostafa Ahmed Awwad, 36, of Yorktown, was sentenced today to 132 months in prison for attempted espionage relating to his attempt to provide schematics of the Navy’s newest nuclear aircraft carrier, the USS Gerald R. Ford, to Egypt.

“Mr. Awwad attempted to steal the valuable plans for the USS Ford and to provide them to a foreign government,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “This office is committed to safeguarding our nation’s sensitive defense information, and we will bring to justice those who seek to steal it. I want to commend our partners at the FBI Norfolk and NCIS Norfolk for their excellent work on this case.”

“Awwad took advantage of his position of trust within the Navy to share the schematics of the USS Gerald R. Ford nuclear aircraft carrier with individuals whom he believed were representing a foreign government,” said John Carlin, Assistant Attorney General for National Security. “The National Security Division will continue to seek justice for those who abuse their access to sensitive defense information.”

“This case is a chilling reminder that the insider threat is more pervasive and dangerous than ever," said John S. Adams, Special Agent in Charge of the FBI's Norfolk Field Office. "The defendant’s actions and intent to provide national defense information to a foreign government posed a significant threat to national security and directly endangered the lives of American service members. The incident highlights the critical importance for the FBI to continue to prioritize counterintelligence matters and to vigorously investigate and disrupt any espionage activity directed against the United States.”

"The mission of NCIS includes protecting Sailors and secrets,” said Tim Quick, Special Agent in Charge of NCIS Norfolk Field Office. “Awwad endangered both; for personal gain and to help strengthen another nation's military. It's gratifying that NCIS was a part of bringing him to justice."

Awwad pleaded guilty on June 15, 2015. According to court documents, Awwad began working for the Department of the Navy in February 2014 as a civilian general engineer in the Nuclear Engineering and Planning Department at the Norfolk Naval Shipyard.  Based on a joint investigation, an undercover FBI agent contacted Awwad by telephone on Sept. 18, 2014, and asked to meet him the following day.  Without seeking additional information from the caller, Awwad agreed.  The next day, Awwad met with the undercover FBI agent, who was posing as an Egyptian intelligence officer, in a park in Hampton, Virginia.  During the meeting, Awwad claimed it was his intention to utilize his position with the U.S. Navy to obtain military technology for use by the Egyptian government, including but not limited to the designs of the USS Gerald R. Ford nuclear aircraft carrier, a new Navy “supercarrier.”  Awwad agreed to conduct clandestine communications with the undercover FBI agent, and to conduct “dead drops” in a concealed location in the park.

On Oct. 9, 2014, Awwad and the undercover FBI agent met at a hotel where Awwad described a detailed plan to circumvent U.S. Navy computer security by installing software on his restricted computer system that would enable him to copy documents without causing a security alert.  At this time, Awwad also provided the undercover FBI agent with four Computer Aided Drawings of a U.S. nuclear aircraft carrier downloaded from the Navy Nuclear Propulsion Information system.  During the discussion, Awwad indicated his understanding that the drawings would be sent to and used in Egypt.  Awwad also asked the undercover FBI agent for $1,500 to purchase a pinhole camera that he would wear around the shipyard to photograph restricted material.  At the conclusion of the meeting, Awwad agreed to provide the undercover FBI agent with passport photos which would be used to produce a fraudulent Egyptian passport so that Awwad could travel to Egypt without alerting U.S. government officials.

On Oct. 23, 2014, Awwad traveled to the pre-arranged dead drop site situated on a secluded hiking trail and utilized a concealed container disguised in a hole in the ground.  He retrieved $3,000 before placing an external hard drive and two passport photos inside.

On Dec. 5, 2014, Awwad and the undercover agent met in the Hampton Roads, Virginia, area.  During this meeting, Awwad stated that he planned to travel to Egypt.  Awwad subsequently said he wanted to meet with “high ranking” Egyptian intelligence and military officials in Cairo.  Awwad also stated during the meeting that he had copied all of the schematics. During the meeting, Awwad provided the undercover FBI agent a thumb drive that contained more schematics of the USS Gerald R. Ford.  The undercover FBI agent handed Awwad the “escape plan” – in actuality a manila envelope with no real plan inside – along with $1,000 in currency, shortly before Awwad was arrested.

The schematics of the USS Gerald R. Ford that Awwad provided are information related to the national defense of the United States.  The USS Gerald R. Ford, which is currently under construction, is the first in a new class of aircraft carriers.  When completed, the USS Ford will be the most advanced aircraft carrier in the world, with approximately 4,000 sailors on board.  The schematics contain Naval Nuclear Propulsion Information and they are marked with the handling restriction “NOFORN,” which means they are not releasable to foreign persons.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John Carlin, Assistant Attorney General for National Security; Randall C. Coleman, Assistant Director of the FBI’s Counterintelligence Division; and Tim Quick, Special Agent in Charge of the NCIS Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.

This case was investigated by the FBI’s Norfolk Field Office and NCIS Norfolk, in cooperation with the Department of Navy. Assistant U.S. Attorneys Benjamin L. Hatch and Joseph E. DePadilla, and National Security Division Counterespionage Senior Trial Attorney Heather M. Schmidt 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-163.

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NORFOLK, Va. – Scott Thomas Sandler, 51, of Grand Forks, North Dakota, was sentenced today to 180 months in prison and lifetime supervised release for enticement of a minor.

Sandler pled guilty on March 26, 2015. According to court documents, Sandler met a 13 year-old girl from Virginia Beach on Facebook in March 2014.  The two struck up an online friendship that quickly turned sexual, and Sandler sent numerous images of his genitals to her.  The online relationship lasted about one month.  At that time, the victim’s father found out and reported the crime to the Virginia Beach Police Department (VBPD), who identified Sandler by his self-photographs that he sent to the victim, which included a distinctive shirt that contained the name of Sandler’s employer in North Dakota.  After Sandler was identified, his computers were confiscated and examined.  The VBPD discovered that Sandler had been having online sexual relationships with additional minors, as well as collecting hundreds of sexually explicit images of minors from the Internet.

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 Homeland Security Investigations Washington, D.C. Field Office, and James A. Cervera, Virginia Beach Chief of Police, 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-4.

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ALEXANDRIA, Va. – Ardit Ferizi, a citizen of Kosovo, has been detained by Malaysian authorities on a U.S. provisional arrest warrant alleging that he provided material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, and committed computer hacking and identity theft violations in conjunction with the theft and release of personally identifiable information (PII) of U.S. service members and federal employees.  The criminal complaint was unsealed in the Eastern District of Virginia today.

According to the criminal complaint, Ferizi, also known by his hacking moniker “Th3Dir3ctorY,” is believed to be the leader of a Kosovar internet hacking group called Kosova Hacker’s Security (KHS).  Ferizi hacked into the computer system of a victim company located in the United States and stole the PII of thousands of individuals.  He then provided the PII of over 1,000 U.S. service members and federal employees to ISIL to be used against those employees.  Between June and August 2015, Ferizi provided unlawfully obtained PII to ISIL member Junaid Hussain, aka Abu Hussain al-Britani.  On Aug. 11, 2015, in the name of the Islamic State Hacking Division (ISHD), Hussain posted a tweet titled “NEW: U.S. Military AND Government HACKED by the Islamic State Hacking Division!” which contained a hyperlink to a 30-page document.  That document stated, in part, that “we are in your emails and computer systems, watching and recording your every move, we have your names and addresses, we are in your emails and social media accounts, we are extracting confidential data and passing on your personal information to the soldiers of the khilafah, who soon with the permission of Allah will strike at your necks in your own lands!”  The next 27 pages of the document contained the names, e-mail addresses, e-mail passwords, locations and phone numbers for approximately 1,351 U.S. military and other government personnel.  This posting was intended to provide ISIL supporters in the United States and elsewhere with the PII belonging to the listed government employees for the purpose of encouraging terrorist attacks against those individuals.

“National security is compromised by computer intrusions, and Ferizi is charged with obtaining the personal identifying information of U.S. military and government personnel and providing it to ISIL,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “We will investigate and prosecute these cyber-attacks to fullest extent of the law.”

“As alleged, Ardit Ferizi is a terrorist hacker who provided material support to ISIL by stealing the personally identifiable information of U.S. service members and federal employees and providing it to ISIL for use against those employees,” said Assistant Attorney General Carlin.  “This case is a first of its kind and, with these charges, we seek to hold Ferizi accountable for his theft of this information and his role in ISIL’s targeting of U.S. government employees.  This arrest demonstrates our resolve to confront and disrupt ISIL’s efforts to target Americans, in whatever form and wherever they occur.”

Ferizi faces a maximum penalty of 35 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; 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. Assistant U.S. Attorney Lynn Haaland and Trial Attorney Gregory Gonzalez of the National Security Division’s Counterterrorism Section are prosecuting the case. The investigation is being conducted by the FBI’s Washington Field Office.

The Assistant Attorney General, U.S. Attorney and FBI Assistant Director thanked the Malaysian authorities for their assistance in this matter.

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-MJ-515.

An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.

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ALEXANDRIA, Va. – Wayne Shelby Simmons, 62, of Annapolis, Maryland, a former occasional on-air commentator who appeared on a cable news network, was arrested today after being indicted by a federal grand jury on charges of major fraud against the United States, wire fraud, and making false statements to the government.

According to the indictment, Simmons falsely claimed he worked as an “Outside Paramilitary Special Operations Officer” for the Central Intelligence Agency (CIA) from 1973 to 2000, and used that false claim in an attempt to obtain government security clearances and work as a defense contractor, including at one point successfully getting deployed overseas as an intelligence advisor to senior military personnel.  According to the indictment, Simmons also falsely claimed on national security forms that his prior arrests and criminal convictions were directly related to his supposed intelligence work for the CIA, and that he had previously held a top secret security clearance.  The indictment also alleges that Simmons defrauded an individual victim out of approximately $125,000 in connection with a bogus real estate investment.

Simmons will make his initial appearance at 2 p.m. today in front of Magistrate Judge John F. Anderson at the federal courthouse in Alexandria.

If convicted, Simmons faces a maximum penalty of 20 years in prison on the wire fraud counts, 10 years in prison on the major fraud against the U.S. counts, and 5 years in prison on the false statements count.  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.  Simmons will have his initial appearance later today before U.S. Magistrate Judge John F. Anderson.  Assistant U.S. Attorney Paul J. Nathanson 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: 15-cr-293.

An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.

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ALEXANDRIA, Va. – Linda Diane Wallis, aka Lynn Wallis Miller, 51, of Fairfax, pleaded guilty today for her role in three fraud schemes totaling over $1 million in losses, including embezzling $653,000 from Virginia State Senator Richard Saslaw’s campaign fund.

According to the statement of facts filed with the plea agreement, 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 allegedly 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 involves misuse of funds from a non-profit charitable organization, of which Wallis was Executive Director and co-conspirator D.M. co-founded. The non-profit, known as 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. 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/restaurants, and merchandise purchases.

Wallis will be sentenced on Jan. 29, 2016, and faces a maximum penalty of 20 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; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement.  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. 1:15-cr-285.

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NORFOLK, Va. – Donald G. McManus, 22, and Breanna L. McManus, 23, of Wallingford, Connecticut, pleaded guilty today to charges related to the distribution of heroin aboard the USS George H.W. Bush aircraft carrier that ultimately led to the overdose of an active duty sailor.

Donald McManus and his wife, Breanna, were indicted by a federal grand jury on Sept. 2, 2015.  According to the statement of facts filed with the plea agreements, Donald McManus was an active duty sailor in the United States Navy assigned to the USS George H.W. Bush aircraft carrier in February 2015.  While in a restricted status on-board the USS Bush, Donald McManus had his wife smuggle heroin and syringes aboard the aircraft carrier.  The McManus couple sold heroin to another sailor who was later found unresponsive on the floor in the ship’s berthing area.  The USS Bush’s medical personnel immediately responded and worked with emergency medical technicians in an attempt to save the sailor’s life.  The overdose victim was without a detectable pulse until medical personnel were able to resuscitate the sailor.

Donald and Breanna McManus were charged by criminal complaint on Aug. 13, 2015. Daonald McManus will be sentenced on Jan. 21, 2016, and Breanna McManus will be sentenced on Jan. 27, 2016. Each faces a maximum penalty 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; and Tim Quick, Special Agent in Charge of NCIS’s Norfolk Field Office, made the announcement after the pleas were accepted by U.S. District Judge Raymond A. Jackson.

This case was investigated by NCIS’s Norfolk Field Office.  Special Assistant U.S. Attorney Alyssa Nichol, Virginia Assistant Attorney General and Special Assistant U.S. Attorney John F. Butler, and Assistant U.S. Attorney Andrew C. Bosse 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. 2:15-cr-109.                                                         

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NORFOLK, Va. – Jason Marvin Saunders, 33, of Portsmouth, was sentenced today to 480 months in prison for drug conspiracy and gun crimes, including conspiracy to distribute heroin, cocaine, and cocaine base, and possession of firearms in furtherance multiple drug trafficking crimes.  Saunders’ twin brother and co-conspirator, Jeremy Lynn Saunders, pleaded guilty to drug conspiracy and firearms charges, and was sentenced to 25 years in prison on June 25, 2015.

Saunders was convicted by a federal jury on July 2, 2015.  According to court records and evidence at trial, from January 2012 to about August 2014, the Saunders brothers jointly distributed over 1,000 grams of heroin, over 5,000 grams of cocaine, and over 280 grams of cocaine base through an organization that they managed and used firearms to protect.  On Aug. 23, 2014, Saunders and his brother were involved in an exchange of gunfire with a rival drug organization outside a location they operated on Appomattox Avenue in Portsmouth.  In response to that incident, Saunders possessed a Taurus PT 145 Millennium Pro .45 Caliber pistol with 8 cartridges and a Ruger P85 9MM pistol.  During the execution of a search warrant on Feb. 6, 2014, at a different location, Saunders was found with approximately 125 grams of cocaine powder, 50 grams of heroin, 16 grams of crack cocaine, scales, packaging materials, cutting agents, a Makarov Special Edition .380 Caliber semi-automatic pistol with 8 cartridges, a Rohm RG10 .22 Caliber revolver, and thousands of dollars in cash.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Karl C. Colder, Special Agent in Charge for DEA’s Washington Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.  Assistant U.S. Attorneys Joseph DePadilla and Andrew Bosse prosecuted the case.

The case was investigated by the DEA’s Norfolk Office with the assistance of the Portsmouth Police Department as part of the Organized Crime Drug Enforcement Task Force (OCDETF).  The OCDETF program is a federal, multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.  The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.

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. 2:15cr2.

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NEWPORT NEWS, Va. – Slavik Hayimov, aka Steve Hayimov, 44, of Queens, New York, pleaded guilty today to charges related to laundering the proceeds of a sophisticated jewelry theft ring.

In a statement of facts filed with the plea agreement, Hayimov conspired with a jewelry theft ring that was based in Richmond. The thieves regularly conducted lengthy surveillance on jewelry stores to identify vulnerable individuals and then followed their targets to their hotels or homes.  In most of the robberies, several men would suddenly appear as the victims approached or entered their car, punch out the car’s windows, threatened the victims at knife-point and would steal the victims’ merchandise.  In addition, the robbers would puncture the victims’ car tires and steal their cell phone to reduce the chance of pursuit or apprehension. The theft ring ultimately stole more than $5 million in jewelry from victims in Virginia and at least six other states.

According to court documents, after a successful robbery members of the ring would travel to New York to sell the merchandise to Hayimov. Knowing that the merchandise was stolen, Hayimov paid far less than fair market value for the jewelry.  To conceal his and the theft ring’s activities, he paid for the stolen merchandise in cash and by making anonymous bank deposits.  Members of the group used the funds provided by Hayimov to purchase investment properties and pay for expenses they incurred while committing crimes.

Hayimov was indicted by a federal grand jury on Nov. 18, 2014. He faces a maximum penalty of 20 years in prison when sentenced on Feb. 26, 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; Charles E. Smith, Special Agent in Charge of the Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; 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 Arenda L. Wright Allen.  Assistant U.S. Attorney Eric M. Hurt and Trial Attorney Adam L. Small of the Organized Crime and Gang Section of the Justice Department’s Criminal Division are prosecuting the case.

The case was investigated by the ATF and FBI-Norfolk, with assistance from Virginia police departments in Williamsburg, Virginia Beach, Henrico County, Chesterfield, Prince William County, Fairfax County, and the Virginia State Police. Additional assistance was provided by police departments in Baltimore County, Maryland; Port Authority of New York and New Jersey; New York City Police Department; Rutherford Police Department, New Jersey; and Gwinnett County Police Department, Georgia. Also assisting was the Morris County, New Jersey, Prosecutor’s Office.

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. 4:12-cr-00039.

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ALEXANDRIA, Va. – Jennifer Xanten, 51, of Frederick, Maryland, pleaded guilty today to charges of mail fraud relating to her stealing more than 500 checks totaling approximately $426,000 out of her employer’s incoming mail.

In a statement of facts filed with the plea agreement, Xanten, an employee of a rehabilitation center in Rockville, Maryland, admitted to stealing the checks out of the center’s incoming mail from February 2014 to July 2015.  To effectuate her scheme, Xanten, who was responsible for mailing out the companies’ invoices, would send out invoices to collect payment for services the center performed. One such company who received invoices was located in Chantilly. She would then intercept the incoming check payments and deposit the checks into her personal account without authorization.  Xanten, who was responsible for inputting entries into the bookkeeping records, falsified entries related to the stolen checks in order to conceal her scheme.

Xanten faces a maximum penalty of 20 years in prison when sentenced on Jan. 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; 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 James C. Cacheris.  Assistant U.S. Attorney Jamar K. Walker 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. 1:15cr286.

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RICHMOND, Va. – Zebulon Resolve Wendt, 34, of Chesterfield County, pleaded guilty today to producing child pornography of a local juvenile whom he had babysat and sexually abused and exploited on numerous occasions.

According to court documents, Canadian law enforcement detected Wendt after he uploaded several images of a juvenile female engaged in sexually explicit conduct from his Chesterfield residence to an Internet website.  Federal agents with the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), subsequently executed a search warrant at Wendt’s residence where they recovered several computers, external hard drives, and other computer equipment.  A subsequent forensic examination of the seized items revealed thousands of images and videos of a juvenile female engaged in sexually explicit conduct that Wendt himself had taken with a digital camera and saved onto his computer equipment.  Evidence showed that he then distributed these images and videos to other individuals over the Internet.

Wendt was charged by superseding indictment on July 7, 2015.  Wendt faces mandatory minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison when sentenced on January 14, 2015, before U.S. District Judge Robert E. Payne.  Upon release from prison, Wendt will be required to register as a sex offender in any U.S. jurisdiction in which he lives, works, or attends school.  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 Herring, Attorney General of Virginia; and Clark E. Settles, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI), made the announcement after the plea was accepted by U.S. Magistrate Judge Roderick C. Young.  Special Assistant U.S. Attorneys Stacey E. Rohrs and Samuel E. Fishel of the Virginia Attorney General’s Office 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. 3:15cr095.

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ALEXANDRIA, Va. – Philip Barnard, Jr., 54, of McLean, was sentenced today to 63 months in prison, followed by three years of supervised release for one count of wire fraud and three counts of money laundering for his role in a gold investment fraud scheme involving multiple investors and up to $1 million in investor deposits.  Barnard was also ordered by the court to pay $816,612 in restitution to victims.

Barnard pleaded guilty on July 22, 2015; three days into trial and after prosecutors had presented 10 witnesses and entered over 200 exhibits into evidence.  According to court documents, Barnard owned and operated various companies that purportedly were in the business of coordinating gold transactions.  Barnard claimed to have a global clientele including foreign governments, the world’s richest private investors, foreign private banks, and major purchasers of precious metals.  Barnard solicited funds from investors through false and misleading representations regarding the use of funds, the amount of return on the investments, and the risk associated with investment of the funds.  He also misrepresented that investors would receive minimum and/or guaranteed profits.  For example, Barnard told one victim, “This opportunity involves no risk of losing your investment due to the nature of how we take possession of the bullion we work with ... And, remember, I would never allow you to lose one dime.”  Barnard guaranteed short term returns as high as 1,500 percent.

According to court documents, Barnard sent charts, graphs, and certificates related to the purported investment designed to lull investors into a false sense of profitability.  Unknown to investors, Barnard spent investment funds on personal expenses including private school tuition, personal vehicles, jewelry, and travel.  After the investments failed to yield any profit, Barnard lied to investors about the security of their funds. For example, although he had already spent their funds on personal use, Barnard told one investor, “Your investment is in good hands.  All of the assurances that I made to you are real.  You can rely on my statements.”  When some investors contemplated contacting law enforcement authorities, Barnard coerced them into signing agreements that claimed to immunize him from any civil or criminal liability.  Ultimately, investors suffered losses up to $1 million.

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., Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorneys Uzo Asonye and Christopher Catizone 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-60.

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ALEXANDRIA, Va. – Wossen Assaye, 43, of Arlington, was sentenced today to 384 months in prison, followed by five years of supervised release for two counts of using, carrying, and brandishing a firearm during and in relation to a crime of violence, with both counts based on his armed assaults of two security guards during his March 31, 2015, escape from Inova Fairfax Hospital. Assaye was also ordered to pay restitution in the amount $34,870 for the 12 bank robberies, and was ordered to undergo drug testing and treatment in addition to a mental health evaluation and treatment.

Assaye pleaded guilty on July 23, 2015. According to court documents, Assaye accepted responsibility for not only the firearms offenses, but also additional criminal conduct for which he was charged or suspected to be responsible. According to the statement of facts, beginning in October 2013 and continuing until March 2015, Assaye robbed various banks in Northern Virginia on 11 occasions, two of which were armed robberies.  In another instance, Assaye entered a bank with the intent to commit bank robbery and larceny. After being arrested for his crimes, Assaye escaped from federal custody while at a Virginia hospital for treatment. During the course of his escape, Assaye assaulted a security guard, overpowered her, and took her firearm.  He then pointed the firearm at a second guard before pulling the first guard down the hospital hallway at gunpoint and fleeing the hospital.

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; Colonel Edwin C. Roessler, Jr., Fairfax County Chief of Police; Earl L. Cook, Alexandria Chief of Police; Michael L. Chapman, Loudoun County Sheriff; and Mary Gavin, Falls Church Chief of Police, made the announcement after sentencing by Judge Brinkema.

This case was investigated by the FBI’s Washington Field Office, Fairfax County Police Department, Alexandria City Police Department, Loudoun County Sheriff’s Office, and the Falls Church City Police Department.  Also, during the course of the investigation assistance was received from U.S. Marshals Service, Virginia State Police, Arlington County Police Department, and Metropolitan Police Department of the District of Columbia.  Assistant U.S. Attorneys Michael E. Rich and William M. Sloan, and Special Assistant U.S. Attorney William A. Glaser 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-115.

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RICHMOND, Va. – Noland Anthony Harper, 61, of Henrico County, was sentenced today to 292 months in prison for engaging in a child exploitation enterprise that included sexually abusing young boys as young as 11-years old.  Following his prison term, Harper will be required to register as a sex offender in any U.S. jurisdiction in which he lives, works, or attends school.

Harper pleaded guilty on July 16, 2015. According to court documents, Harper conspired with three other men to sexually abuse three juvenile victims, photograph the abuse, and then distribute the photos to other individuals over the Internet.  Harper helped set up the websites the enterprise used to market and distribute pornographic images of children, and was the enterprise’s principal financier.  In 2014, Harper traveled from Richmond to Desert Hot Springs, California, on three separate occasions. During his trips to California, Harper regularly met up with the three minor boys, all of whom were under 16-years-old, including two boys who were 11-years-old.  Harper would sexually abuse the boys, both at the home of a co-conspirator and during multi-day road trips to, among other places, the beach and Disneyland.  Harper and his co-conspirators recruited the young boys, giving them gifts and cash if the boys agreed to pose for explicit photo shoots.  Harper would subsequently upload the sexually explicit images to his computer and online storage accounts, and sent other images to a co-conspirator for use on the enterprise’s website.  Harper also distributed child pornography from his Henrico residence to willing recipients.

Harper’s alleged co-conspirators are currently facing state charges in California and federal charges in Nevada, respectively.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark Herring, Attorney General of Virginia; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck.  The case was investigated by the FBI as part of the FBI’s Innocent Images Task Force, and Homeland Security Investigations.  Assistant U.S. Attorneys Jessica D. Aber and Thomas A. Garnett, and Special Assistant U.S. Attorney Samuel E. Fishel of the Virginia Attorney General’s Office, 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. 3:15cr36.

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RICHMOND, Va. – Marcel Kiza, 58, of Richmond, was convicted today by a federal jury on charges of theft of government property.

Kiza was indicted on March 18, 2015.  According to court records and evidence at trial, Kiza fraudulently obtained over $50,000 in Child’s Insurance Benefits as a representative payee under the name Marcel Kiza for two children whom he represented to be his deceased brother’s children.  Evidence at trial showed that Kiza did not have a deceased brother, and that he created two identities in order to fraudulently receive Survivors’ Benefits for his own children.  Evidence at trial showed that Kiza had originally entered the country under the name Amuri Ntambwe Kiza, until 2007 when he became a citizen and legally changed his name to Marcel Joshua Kiza.  The government presented social security applications, customs and immigration documents, and a legal name-change petition.  These documents showed the defendant using the same identifiers and, at times, both names.  Additionally, a fingerprint examiner testified that a fingerprint impression taken in 2002 from Amuri matched a 2013 fingerprint taken from Marcel, and both of those fingerprints matched Kiza’s current fingerprint impressions.

Kiza faces a maximum penalty of 10 years in prison when sentenced on Jan. 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 Rod Owens, Resident Agent-in-Charge, Social Security Administration, Office of Inspector General, made the announcement after the verdict was accepted by U.S. District Judge Robert E. Payne.  Assistant U.S. Attorney Heather L. Hart and Special Assistant United States Attorney Margaret Reed 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. 3:15-CR-46.

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ALEXANDRIA, Va. – Linda Diane Wallis, aka Lynn Wallis Miller, 51, of Fairfax, was charged by criminal information today for her alleged role in three fraud schemes totaling over $1 million in losses, including embezzling $653,000 from Virginia State Senator Richard Saslaw’s campaign fund.

According to the criminal information, Wallis is charged with one count of conspiracy to commit wire fraud for allegedly participating 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 allegedly caused approximately $368,400 in loss to Company A.

The second scheme alleged in the criminal information details the embezzlement of approximately $653,000 from the campaign account of Sen. Saslaw. Beginning in or around 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 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 D.M.

The third scheme detailed in the criminal information alleges misuse of funds from a non-profit charitable organization, of which Wallis was Executive Director and D.M. co-founded. The non-profit, known as 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.  In or about April 2010, Wallis established CCCAID’s bank account and between in or about April 2010 to in or about April 2013, community colleges located around the country contributed approximately $293,000 to CCCAID.  Additionally, a Bulgarian businessman associated with 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 D.M.  Despite these restrictions, from in or about April 2010 to in or about August 2014, Wallis authorized approximately $482,000 in transfers from CCCAID’s account to other bank accounts Wallis and D.M. controlled.  A significant percentage of the $482,000 CCCAID was used to pay Wallis’ and D.M.’s personal expenses, such as mortgage payments, expenses related to food/restaurants, and merchandise purchases.

Wallis faces a maximum penalty of 20 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; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement.  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. 1:15-cr-285.

A criminal information contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.

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ALEXANDRIA, Va. – Jon W. McClellan, 55, of Woodbridge, was sentenced today to 60 months in prison and five years of supervised release for charges of receipt of child pornography.

McClellan pleaded guilty on July 14, 2015.  Prior to that date, McClellan worked as an intelligence analyst and held a high-level security clearance.   According to court documents, from March 2010 to February 2014, McClellan used a peer-to-peer file sharing program to receive and collect child pornography videos and images, including numerous videos of children under 12 years old being sexually abused. In total, McClellan’s child pornography collection included over 1,500 images and 1,800 videos of children being sexually exploited, including numerous images and videos depicting sadistic or masochistic conduct.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Washington D.C. office, made the announcement after sentencing by U.S. District Judge Gerald Bruce Lee. This case was investigated by HSI. 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-182.

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Twin brothers Muneeb and Sohaib Akhter, 23, of Springfield, Virginia, were sentenced today for conspiracy to commit wire fraud, conspiracy to access a protected computer without authorization and conspiracy to access a government computer without authorization.  Muneeb Akhter was also sentenced for accessing a protected computer without authorization, making a false statement and obstructing justice.  Muneeb Akhter was sentenced to 39 months in prison and Sohaib Akhter was sentenced to 24 months in prison.  Each man was also sentenced to three years of supervised release.

“The Akhter brothers’ misuse of their computer skills harmed numerous individuals and companies, and their efforts to gain clandestine access to State Department systems represented a threat to national security,” said U.S. Attorney Dana J. Boente for the Eastern District of Virginia.  “Electronic barriers are no less real, or legitimate, than physical ones.  This prosecution sends a clear message to anyone else attempting to weaken the cybersecurity of institutions or use computers to commit crimes.”

The Akhter twins were indicted by a federal grand jury on April 30, 2015, and pleaded guilty on June 26, 2015.  According to court documents, beginning in or about March 2014, Muneeb Akhter hacked into the website of a cosmetics company and stole thousands of its customers’ credit card and personal information.  The Akhter brothers and co-conspirators used the stolen information to purchase goods and services, including flights, hotel reservations and attendance at professional conferences.  Muneeb Akhter also provided stolen information to an individual he met on the “dark net,” who sold the information to other dark-net users and gave Akhter a share of the profits.

In a separate scheme, the Akhter brothers and co-conspirators engaged in a series of computer intrusions and attempted computer intrusions against the U.S. Department of State to obtain sensitive passport and visa information and other related and valuable information about State Department computer systems.  In or around February 2015, Sohaib Akhter used his contract position at the State Department to access sensitive computer systems containing personally identifiable information belonging to dozens of co-workers, acquaintances, a former employer and a federal law enforcement agent investigating his crimes. 

Sohaib Akhter later devised a scheme to ensure that he could maintain perpetual access to desired State Department systems.  Sohaib Akhter, with the help of Muneeb Akhter and co-conspirators, attempted to secretly install an electronic collection device inside a State Department building.  Once installed, the device could have enabled Sohaib Akhter and co-conspirators to remotely access and collect data from State Department computer systems.  Sohaib Akhter was forced to abandon the plan during its execution when he broke the device while attempting to install it behind a wall at a State Department facility in Washington, D.C.

Furthermore, beginning in or about November 2013, Muneeb Akhter was performing contract work for a private data aggregation company located in Rockville, Maryland.  He hacked into the company’s database of federal contract information so that he and his brother could use the information to tailor successful bids to win contracts and clients for their own technology company.  Muneeb Akhter also inserted codes onto the victim company’s servers that caused them to vote for Akhter in an online contest and send more than 10,000 mass emails to students at George Mason University, also for the purpose of garnering contest votes.

In or about October 2014, Muneeb Akhter lied about his hacking activities and employment history on a government background investigation form while successfully obtaining a position with a defense contractor.  Furthermore, in or about March 2015, after his arrest and release pending trial, Muneeb Akhter obstructed justice by endeavoring to isolate a key co-conspirator from law enforcement officers investigating the conspirators’ crimes.  Among other acts, Muneeb Akhter drove the co-conspirator to the airport and purchased a boarding pass, which the co-conspirator used to travel out of the country to the Republic of Malta.  When the co-conspirator returned to the United States, Muneeb Akhter continued to encourage the co-conspirator to avoid law enforcement agents.

U.S. Attorney Dana J. Boente for the Eastern District of Virginia; Acting Chief Security Officer Charles R. Taylor for Department of Homeland Security (DHS); Assistant Secretary Gregory B. Starr for the U.S. Department of State’s Bureau of Diplomatic Security; and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge T.S. Ellis, III.

This case was investigated by the Internal Security and Investigations Division of the Office of the Chief Security Officer, DHS Headquarters; the U.S. Department of State’s Bureau of Diplomatic Security, and FBI’s Washington Field Office.  Special Assistant U.S. Attorneys John Taddei and Jennifer Clarke 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-124.

ALEXANDRIA, Va. – Twin brothers Muneeb and Sohaib Akhter, 23, of Springfield, were sentenced today for conspiracy to commit wire fraud, conspiracy to access a protected computer without authorization, and conspiracy to access a government computer without authorization.  Muneeb Akhter was also sentenced for accessing a protected computer without authorization, making a false statement, and obstructing justice. Muneeb Akhter was sentenced to 39 months in prison, and Sohaib Akhter was sentenced to 24 months in prison. Each man was also sentenced to three years of supervised release.

“The Akhter brothers’ misuse of their computer skills harmed numerous individuals and companies, and their efforts to gain clandestine access to State Department systems represented a threat to national security,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “Electronic barriers are no less real, or legitimate, than physical ones.  This prosecution sends a clear message to anyone else attempting to weaken the cybersecurity of institutions or use computers to commit crimes.”

The Akhter brothers were indicted by a federal grand jury on April 30, 2015, and pleaded guilty on June 26, 2015.  According to court documents, beginning in or about March 2014, Muneeb Akhter hacked into the website of a cosmetics company and stole thousands of its customers’ credit card and personal information.  The Akhter brothers and co-conspirators used the stolen information to purchase goods and services, including flights, hotel reservations, and attendance at professional conferences.  Muneeb Akhter also provided stolen information to an individual he met on the “dark net,” who sold the information to other dark-net users and gave Akhter a share of the profits.

In a separate scheme, the Akhter brothers and co-conspirators engaged in a series of computer intrusions and attempted computer intrusions against the U.S. Department of State to obtain sensitive passport and visa information and other related and valuable information about State Department computer systems.  In or around February 2015, Sohaib Akhter used his contract position at the State Department to access sensitive computer systems containing personally identifiable information belonging to dozens of co-workers, acquaintances, a former employer, and a federal law enforcement agent investigating his crimes.

Sohaib Akhter later devised a scheme to ensure that he could maintain perpetual access to desired State Department systems.  Sohaib Akhter, with the help of Muneeb Akhter and co-conspirators, attempted to secretly install an electronic collection device inside a State Department building.  Once installed, the device could have enabled Sohaib Akhter and co-conspirators to remotely access and collect data from State Department computer systems.  Sohaib Akhter was forced to abandon the plan during its execution when he broke the device while attempting to install it behind a wall at a State Department facility in Washington, D.C.

Furthermore, beginning in or about November 2013, Muneeb Akhter was performing contract work for a private data aggregation company located in Rockville, Maryland.  He hacked into the company’s database of federal contract information so that he and his brother could use the information to tailor successful bids to win contracts and clients for their own technology company.  Muneeb Akhter also inserted codes onto the victim company’s servers that caused them to vote for Akhter in an online contest and send more than 10,000 mass emails to students at George Mason University, also for the purpose of garnering contest votes.

In or about October 2014, Muneeb Akhter lied about his hacking activities and employment history on a government background investigation form while successfully obtaining a position with a defense contractor.  Furthermore, in or about March 2015, after his arrest and release pending trial, Muneeb Akhter obstructed justice by endeavoring to isolate a key co-conspirator from law enforcement officers investigating the conspirators’ crimes.  Among other acts, Muneeb Akhter drove the co-conspirator to the airport and purchased a boarding pass, which the co-conspirator used to travel out of the country to the Republic of Malta.  When the co-conspirator returned to the United States, Muneeb Akhter continued to encourage the co-conspirator to avoid law enforcement agents.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Charles R. Taylor, Acting Chief Security Officer, Department of Homeland Security (DHS); Gregory B. Starr, Assistant Secretary for the U.S. Department of State’s Bureau of Diplomatic Security; 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.

This case was investigated by the Internal Security and Investigations Division of the Office of the Chief Security Officer, DHS Headquarters; the U.S. Department of State’s Bureau of Diplomatic Security, and FBI’s Washington Field Office.  Special Assistant U.S. Attorneys John Taddei and Jennifer Clarke 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-124.

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ALEXANDRIA, Va. – Jose Eduardo Avalos, 30, of Charlotte, North Carolina, was sentenced today to 30 months in prison, followed by two years of supervised release for illegal re-entry into the United States after conviction of an aggravated felony.

Avalos, an El Salvadoran national, pleaded guilty on May 21, 2015. According to court documents, Avalos joined the Mara Salvatrucha (MS-13) criminal gang at age 13, and has identified his rank within the gang as a “nation leader”.  He has illegally entered the United States three times, and has twice been removed following criminal convictions. His first removal in 2004 came after a being convicted of carnal knowledge of a child 13 to 15 years old; while his second removal came in 2011 after being convicted of illegal re-entry and possession of a stolen firearm. Avalos will be removed from the U.S. for a third time following the completion of his prison sentence.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Yvonne Evans, Field Office Director of U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations (ERO), made the announcement after sentencing by U.S. District Judge Gerald Bruce Lee.  Special Assistant U.S. Attorneys William A. Glaser and Nima R.T. Binara 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-138

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ALEXANDRIA, Va. – Giedre Ruseckaite, 24, a Lithuanian citizen who has resided in Nevada, was sentenced today to 120 months in prison for sex trafficking of a child.

Ruseckaite pleaded guilty on June 26, 2015. According to court documents, Ruseckaite was the girlfriend and most trusted assistant of Lenny Paul Haskins, 34, of Las Vegas, who was recently sentenced to 40 years in prison for sex trafficking of a child. She assisted Haskins in sex trafficking and prostituting two teenage girls, one of whom was 15 years old and the other was 17 years old. Haskins frequently provided women and girls who were prostituted with various drugs, including marijuana, ecstasy, liquor, a drug known as “molly,” a drug concoction known as “lean,” and other controlled substances so that they could work longer without sleep.

While Haskins was incarcerated he continued to run his sex trafficking business from jail.  With the assistance of Ruseckaite, proceeds from the sex trafficking conspiracy were forwarded to Haskins while he was in jail so that he could purchase items and make telephone calls.  Because jail calls are monitored, Haskins would give instructions via code words.  Ruseckaite helped Haskins operate his venture in numerous ways, including assisting in the rental of hotel rooms where victims were prostituted; assisting in the collection of prostitution proceeds from victims; transporting victims; purchasing and distributing condoms to victims; advising the victims on how to perform sex acts; and assisting in the creation and posting of prostitution advertisements on Internet websites.

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 sentencing by U.S. District Judge Claude M. Hilton.

This case was investigated by the FBI’s Washington Field Office with substantial assistance from the Fairfax County Police Department and the Herndon Police Department.  Assistant U.S. Attorney Michael Frank 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-157.

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ALEXANDRIA, Va. – Omar T. Butler, 30, of Washington, D.C., pleaded guilty today to charges relating to a 28 mile car chase in June 2015, in which he reached speeds of 180 mph on roads in Virginia, Washington, D.C., and Maryland.

Butler pleaded guilty without a written plea agreement or agreed statement of facts.  The government’s fact proffer noted that at approximately 12:35 a.m. on June 10, 2015, Butler led U.S. Park Police officers on a 28-mile pursuit during which Butler nearly hit and killed two officers.  U.S. Park Police had attempted to stop his vehicle for speeding on the George Washington Memorial Parkway in the area of Spout Run, however, Butler ignored the emergency lights and sirens and fled through Virginia, D.C., and Maryland, reaching a top speed of approximately 180 mph with several dozen federal and state law enforcement officers in pursuit. Butler was ultimately arrested at a gas station in Bryans Road, Maryland, after pulling over to refuel his vehicle.

Butler was indicted by a federal grand jury on Aug. 6, 2015. He faces a maximum penalty of five years in prison when sentenced on Jan. 22, 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 Robert D. MacLean, Chief of the U.S. Park Police, made the announcement after the plea was accepted by U.S. District Judge Liam O’Grady.  Special Assistant U.S. Attorney Timothy Belsan and Assistant United States Attorney Gene Rossi 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-229.

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RICHMOND, Va. – Justin Fox, 31, of Stafford, was sentenced today to 180 months in prison for attempted production of child pornography.

Fox pleaded guilty on May 27, 2015.  According to court documents, Fox admitted he engaged in online messaging with a 13-year-old boy.  During those conversations, Fox portrayed himself as a young female and asked the boy to create and send child pornography via online messenger.  After the boy sent pornographic images to Fox, Fox continued to ask for more, calling the boy his slave.  A search warrant executed at Fox’s residence and a forensic search of Fox’s electronic devices allowed law enforcement to identify two additional victims who Fox attempted to entice to produce child pornography.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge John Gibney, Jr.  Assistant U.S. Attorney Heather L. Hart 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-47.

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NEWPORT NEWS, Va. – Preston Frazier, 22, and Keandre Williams, 24, both of Newport News, pleaded guilty today to charges of conspiracy to commit bank fraud and aggravated identity theft.

In statements of facts filed with their respective plea agreements, Frazier and Williams admitted to conspiring to obtain United States currency from several financial institutions by depositing worthless financial instruments into accounts belonging to other individuals and then conducting debit card transactions at ATM and retail locations throughout Hampton Roads.  Frazier and Williams each admitted to recruiting account holders of several financial institutions via social media to provide access to their debit cards and personal identification numbers for a period of time in exchange for monetary payment.  Frazier, Williams, and other co-conspirators were recorded by video surveillance equipment at ATM and retail locations while engaging in what they termed the “card cracking” scheme.

Frazier, Williams, and two others were indicted by a federal grand jury on June 10, 2015. Frazier and Williams each faces a mandatory minimum penalty of two years in prison to run consecutive to a maximum possible penalty of 30 years in prison.  Both will be sentenced on Jan. 11, 2015.  Charges remain pending against the remaining two co-conspirators. The minimum and 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; Doug Mease, Special Agent in Charge of the U.S. Secret Service’s Richmond Field Office; David G. Bowers, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Richard W. Myers, Chief of Newport News Police, made the announcement after the pleas were accepted by U.S. District Judge Mark S. Davis. Assistant U.S. Attorneys Kaitlin C. Gratton and Brian J. Samuels 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. 4:15cr43.

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ALEXANDRIA, Va. – Lawrence Wayne Reese, 56, and his son, Lance Terrell Reese, 28, both from Fort Belvoir, were sentenced today for their roles in burning down the Sub Shop, a business Lawrence Reese owned in Lorton.

Lawrence Reese was sentenced to 15 years in prison, five years of supervised release, and ordered to pay $34,000 in restitution. Lance Reese was sentenced to five years in prison, two years of supervised release, and ordered to pay $34,000 in restitution.

Lawrence and Lance Reese were convicted at trial on June 19, 2015, for their respective roles in the Feb. 6, 2013, arson of the Sub Shop.  Lawrence Reese owned and operated the business.  Through over 500 hours of financial analysis performed by an ATF Senior Forensic Auditor, the United States proved at trial that the business was financially insolvent.  Specifically, Lawrence Reese’s business reported losses of approximately $60,000 on its 2012 U.S. income tax return.  Due to financial strain, Lawrence Reese recruited his son and Horace Thompson to burn down the Sub Shop.  Thompson was convicted of arson at trial on Oct. 3, 2013, and was sentenced on Dec. 19, 2013, to five years in prison, two years of supervised release, and ordered to pay $34,000 in restitution.

The evidence presented at trial established that Lawrence Reese and Thompson, through the use of the accelerant gasoline, caused an explosion followed by a fire at the Sub Shop.  The fire destroyed the business and left Lawrence Reese and Thompson badly burned.  Following the fire, Lawrence Reese submitted a claim for approximately $200,000 to his insurance company.  His submission of this claim, for an intentionally set fire, resulted in his commission of multiple counts of mail and wire fraud.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police; and Charles E. Smith, 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 Liam O’Grady.

This case was investigated by the Fairfax County Police Department’s Homicide Unit and the Arson Group in ATF’s Washington Field Division, with special assistance from ATF’s Financial Investigative Services Division.  Assistant U.S. Attorneys Michael Rich and Zachary Terwilliger 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-32.

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ALEXANDRIA, Va. – Thomas Anthony George, 65, of Washington, D.C., pleaded guilty today to two counts of using a firearm during the commission of armed bank robberies.

According to the statement of facts filed with the plea agreement, in approximately January 2015, George entered a conspiracy to commit armed bank robberies within the Eastern District of Virginia, and elsewhere.  Over the course of the ensuing two months, George and his co-conspirators, who were known as the Black Hat Bandits, robbed nine banks, including six banks in the Eastern District of Virginia, two banks in the District of Maryland, and one bank in the District of Columbia.  In each of these robberies, George brandished a firearm at bank customers or employees of the bank.  In total, George and his co-conspirators stole approximately $182,104 during the nine bank robberies.    

George was indicted by a federal grand jury on March 19, 2015. George faces a mandatory minimum penalty of 32 years in prison and a maximum penalty of life in prison when sentenced on Dec. 17, 2015. 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; Vincent H. Cohen, Jr., Acting U.S. Attorney for the District of Columbia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and Cathy Lanier, Chief of the Metropolitan Police Department, made the announcement after the plea was accepted by U.S. District Judge James C. Cacheris. Assistant U.S. Attorneys Tobias D. Tobler and Jonathan L. Fahey are prosecuting the case.

The investigation was worked jointly by the FBI's Washington and Baltimore Field Offices, Anne Arundel County Police Department, Charles County Sheriff’s Office, Fairfax County Police Department, Falls Church Police Department, Loudoun County Police Department, the Metropolitan Police Department, Vienna Police Department and Virginia State Police.  Additional assistance was provided by Arlington County Police Department, Maryland State Police and the Montgomery County 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. 1:15-CR-87.

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NORFOLK, Va. – Luis Perdomo, 27, of New York, New York, pleaded guilty today to conspiracy to distribute and possess with intent to distribute 5 kilograms or more of cocaine and 1 kilogram or more of heroin.

In a statement of facts filed with the plea agreement, Perdomo and others obtained kilogram quantities of cocaine and heroin from a source of supply in the New York City area and transported the cocaine and heroin to a stash house in Norfolk prior to its distribution.  Proceeds from the drug distributions were then transported back to New York City in various automobiles equipped with secret compartments.  A traffic stop in Maryland on March 31, 2015, resulted in a search of Perdomo’s car and the discovery of $280,000 cash in three secret compartments inside the car. Police also found a drug ledger and several phones belonging to Perdomo.  One of the phones contained a video recording of Perdomo handling several kilogram sized packages of a white powdery substance.  Another video on the same phone contained GPS data for a residence in Norfolk, which police later determined was a stash house.  Surveillance in April and May 2015 showed that Perdomo frequented the stash house in Norfolk.  GPS tracking devices were put in place on the vehicles at the stash house to track their drive to New York.  When police stopped the vehicles, more drugs and secret compartments were discovered.

Perdomo was indicted by a federal grand jury on July 9, 2015. Perdomo faces a maximum penalty of life in prison when sentenced on Jan. 13, 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 Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C. Field Office, made the announcement after the plea was accepted by U.S. District Judge Raymond A. Jackson.  Assistant U.S. Attorney Darryl Mitchell 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. 2:15-cr-82.

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NORFOLK, Va. – Phillip Jerome Murphy, 41, of Franklin, pleaded guilty today to charges of conspiracy to distribute heroin and possessing a firearm during a drug trafficking crime. A fellow Bloods gang member, Collie Sanks, 37, of Emporia, pleaded guilty to conspiring to distribute heroin on Sept. 17, 2015.

According to court documents, Murphy and Sanks were leaders of a Bloods street gang known as the Red Stone Rydahs, which operated in the Franklin area.  Murphy and Sanks began distributing significant quantities of heroin in Franklin, Smithfield and Emporia in approximately 2012.  As frequently as twice per month, Murphy and Sanks would travel to New York to purchase bulk quantities of heroin and then travel back to southeastern Virginia to distribute the drug.  Both men sold heroin themselves, and also employed other individuals to assist them in their distribution activities.  On several occasions, Murphy completed heroin sales within extremely close proximity to an elementary school that was in session.  In addition to numerous undercover heroin purchases from both Murphy and Sanks, search warrants executed at residences associated with each man yielded heroin, cocaine, narcotics packaging materials, and firearms.

Murphy and Sanks were charged by criminal complaint on July 10, 2015, and Murphy was subsequently indicted by a federal grand jury on Aug. 19, 2015.  Murphy faces a mandatory minimum penalty of 20 years in prison and a maximum penalty of life in prison when he is sentenced on Jan. 6, 2015.  Sanks faces a maximum penalty of 40 years in prison when sentenced on Dec. 9, 2015.  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 S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office; and Phillip Hardison, Chief of the Franklin Police Department, made the announcement after Murphy’s plea was accepted by U.S. District Judge Raymond A. Jackson.  Assistant U.S. Attorneys William D. Muhr and V. Kathleen Dougherty 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 Nos. 2:15cr103 (Murphy) and 2:15cr115 (Sanks).

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NORFOLK, Va. – Dwayne Carter, 38, of Norfolk, was sentenced yesterday to 29 months in prison for conspiracy to engage in food stamp benefits fraud. Carter was ordered to pay $1,928,633.10 in restitution to United States Department of Agriculture (USDA) and the Food and Nutrition Service (FNS).

Carter pleaded guilty on April 27, 2015.  According to court documents, Carter is the son of James Robert Carter, who was the long-time owner and operator of the Merrimac Market, located on Merrimac Avenue in Norfolk. Merrimac Market, classified by the USDA and FNS as a small grocery store, began participating in the Food Stamp and Supplemental Nutrition Assistance Program (SNAP) in April 1993.  From Jan. 1, 2010, to Nov. 7, 2013, the Carters used the Merrimac Market cash register to debit funds from customers who had presented and swiped their EBT card. The person behind the register would then pay the customers half the value of the amount that had been debited in cash.  To avoid detection the Carters debited funds off of a card in multiple transactions over a period of minutes, hours or days.  The Carters obtained approximately $1,928,663 from the USDA/FNS SNAP Program.  James Robert Carter was convicted earlier this year and was sentenced on Jan. 16, 2015, to 30 months in prison and ordered to pay restitution in the amount of $2,275,889.59.  The restitution amounts between the Carters are joint and several.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Williams Squires, Jr., U.S. Department of Agriculture, Office of Inspector General, Special Agent in Charge of the Northeast Region; and Thomas Jankowski, Special Agent in Charge, IRS-Criminal Investigation, Washington D.C. Field Office, made the announcement after sentencing by U.S. District Judge Robert G. Doumar, Sr.  Assistant U.S. Attorney Stephen W. Haynie 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. 2:15cr17

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NORFOLK, Va. – Jermarrieo Javone Stigger, 30, of Portsmouth, was sentenced today to 420 months in prison for conspiracy to distribute narcotics and possession of a firearm in furtherance of a drug trafficking crime.

Stigger pleaded guilty on Feb. 25, 2015.  According to court documents, Stigger was a high-ranking member of the Imperial Gangsta Bloods, a Portsmouth-based set affiliated with the United Blood Nation that engaged in drug trafficking and acts of violence, including multiple shooting incidents during the summer of 2014.  Operating out of Virginia Beach hotel rooms and other residences in Hampton Roads, Stigger bought and sold, and managed others who sold, substantial amounts of cocaine and crack cocaine.  He was regularly armed during the course of the drug conspiracy, including with an assault rifle and numerous handguns.  The defendant and other members of the Imperial Gangsta Bloods who are awaiting sentencing were investigated in a joint operation by the FBI, the Portsmouth Police Department, the Virginia Beach Police Department, and the Virginia State Police.

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 Robert G. Doumar, Sr.  Assistant U.S. Attorneys Andrew Bosse and Joseph DePadilla 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-13.

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Itzhak Loz, 48, of Rishon Le Zion, Israel, the leader of an international counterfeit currency ring responsible for over $70 million in counterfeit U.S. currency, was sentenced today to 180 months in prison for leading a RICO conspiracy involving multiple acts of counterfeiting and money structuring. Loz was also ordered to forfeit $20 million and specific assets including a warehouse in New Jersey where the counterfeit currency was most recently printed.

“Loz was the leader of a conspiracy that printed, distributed and passed over $70 million high-quality counterfeit $50 and $100 bills,” said U.S Attorney Dana J. Boente of the Eastern District of Virginia.  “This international criminal enterprise operated undetected for many years in Israel and the United States and relied upon a close-knit and loyal network of distributors bound by family ties, loyalty and greed.  I want to commend the Secret Service and its law enforcement partners for aggressively investigating this conspiracy and supporting the prosecution of these 13 defendants.”

“The conclusion of this case highlights the Secret Service’s investigative prowess and ability to detect one of the most prolific counterfeit notes in history,” said Special Agent in Charge James M. Murray of the U.S. Secret Service’s (USSS) Washington Field Office.  “This investigation joins a long list of successful counterfeit suppressions over our 150 year history.  We will continue to work closely with our network of law enforcement partners to combat criminal enterprises and protect the Nation’s financial infrastructure.”  

Loz, along with 12 co-conspirators, were indicted by a federal grand jury on Aug. 7, 2014.  According to court documents filed in the case, Loz was the leader of the racketeering enterprise that manufactured and distributed more than $70 million in counterfeit U.S. currency between 2004 and 2014.  The enterprise was financed, in part, by brothers Arkadiy Bangiyev, 38, of Rego Park, New York, and Eduard Bangiyev, 40, of Forest Hills, New York, who operated a retail jewelry store in Long Island and then a gold refinery business in Manhattan’s diamond district. 

Loz, along with the Bangiyev brothers and co-conspirator Ronen Fakiro, 47, also of Rishon Le Zion, manufactured the counterfeit currency on offset and lithography printing machinery in Israel and the United States and produced extremely high-quality notes which replicated the many security features of genuine currency.  At the height of its operations, the enterprise smuggled $3 million worth of counterfeit currency into the United States every three months.  The counterfeit was concealed inside shipping containers containing machinery.  Once the counterfeit was in the United States, the enterprise relied upon a network of distributors who obtained the counterfeit from the Bangiyev brothers.  The ultimate users of the counterfeit passed the notes at locations up and down the east coast of the United States.     

In 2014, Loz and Ronen Fakiro purchased a warehouse in Cherry Hill, New Jersey, to manufacture counterfeit $100 notes and recruited a married couple from Israel, Boaz and Ofra Borohov, 45 and 46, respectively, to assist them in the production of the notes.  Loz attempted to recreate and produce the security features of the most recently issued $100 bill but was unable to do so.  Instead, beginning in April 2014, the enterprise printed $5.3 million in counterfeit $100 bills.  On May 28, 2014, the USSS executed a search warrant at the warehouse and essentially caught the Borohov’s “red handed” as they were operating heat press machines used to manufacture counterfeit currency.  That same day, the USSS also seized approximately $2.56 million in counterfeit $100 bills from Loz’s New York storage unit and other assets, including over $200,000 in genuine U.S. currency, along with jewelry, watches, diamonds, bank accounts, luxury cars and real estate.

All 13 defendants named in the original indictment have pleaded guilty.  Nine defendants have been sentenced, while the remaining four are awaiting sentencing.  The defendants are listed in the indictment in the following order:

Defendant Name & Age

Residence

Arrest Location & Date

Status

Itzhak Loz, 48

Rison Lezion, Israel

Jamaica, New York
May 28, 2014

Pleaded guilty Jan. 20, 2015. Sentenced today to 180 months.

Ronin Fakiro, 47

Rison Lezion, Israel

Jamaica, New York
May 28, 2014

Pleaded guilty Jan. 20, 2015. Sentencing Sept. 21, 2015.

Boaz Borohov, 45

Tel Aviv, Israel

Cherry Hill
May 28, 2014

Pleaded guilty Feb. 6, 2015. Sentenced today to 33 months.

Ofra Borohov, 46

Tel Aviv, Israel

Cherry Hill
May 28, 2014

Pleaded guilty Feb. 6, 2015. Sentenced today to 24 months.

Arkadiy Bangiyev, 38

Rego Park, New York

Rego Park
May 28, 2014

Pleaded guilty Jan. 20, 2015. Sentencing Sept. 21, 2015.

Eduard Bangiyev, 40

Forest Hills, New York

Scranton, Pennsylvania
May 28, 2014

Pleaded guilty Jan. 20, 2015. Sentencing Sept. 21, 2015.

Johnny Elegante Lee, 46

Glen Oaks, New York

Miami, Florida
June 1, 2014

Pleaded guilty Sept. 16, 2014. Sentencing on Sept. 25, 2015.

Tarell Lavon Johnson, 27

Lynbrook, New York

Lynbrook, New York
May 28, 2014

Pleaded guilty Oct. 23, 2014. Sentenced to 36 months on Feb. 27, 2015.

Craig Johnson, 49

Douglasville, Georgia

Douglasville, Georgia
June 13, 2014

Pleaded guilty Oct. 1, 2014. Sentenced to 16 months on Feb. 13, 2015.

Shannon Lamont Smith, 45

Woodstock, Georgia

Atlanta, Georgia
May 28, 2014

Pleaded guilty Sept. 26, 2014. Sentenced to 24 months on July 31, 2015.

Fredrick Barrett, 33

Hempstead, New York

Hempstead, New York
May 28, 2014

Pleaded guilty Oct. 24, 2014. Sentenced to 36 months on Feb. 27, 2015.

Ramel Epps, 25

Freeport, New York

Freeport, New York
May 28, 2014

Pleaded guilty Oct. 20, 2014. Sentenced to 15 months on Feb. 20, 2015.

Brattie Guerra, 23

Freeport, New York

Freeport, New York
May 28, 2014

Pleaded guilty Oct. 3, 2014. Sentenced to 12 months on Feb. 20, 2015.

                                                                                                                  

U.S. Attorney Boente Director Joseph P. Clancy of USSS, made the announcement after sentencing by U.S. District Judge Liam O’Grady.  This case was investigated by the USSS with assistance from U.S. Customs and Border Protection.  Assistant U.S. Attorneys Kimberly R. Pedersen and Gordon D. Kromberg of the Eastern District of Virginia 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.  1:14CR206.

ALEXANDRIA, Va. – Itzhak Loz, 48, of Rishon Le Zion, Israel, the leader of an international counterfeit currency ring responsible for over $70 million in counterfeit U.S. currency, was sentenced today to 180 months in prison for leading a RICO conspiracy involving multiple acts of counterfeiting and money structuring. Loz was also ordered to forfeit $20 million and specific assets including a warehouse in New Jersey where the counterfeit currency was most recently printed.

“Loz was the leader of a conspiracy that printed, distributed and passed over $70 million high-quality counterfeit $50 and $100 bills,” said U.S Attorney Boente. “This international criminal enterprise operated undetected for many years in Israel and the United States and relied upon a close-knit and loyal network of distributors bound by family ties, loyalty and greed.  I want to commend the Secret Service and its law enforcement partners for aggressively investigating this conspiracy and supporting the prosecution of these 13 defendants.”

“The conclusion of this case highlights the Secret Service’s investigative prowess and ability to detect one of the most prolific counterfeit notes in history,” said James M. Murray, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office. “This investigation joins a long list of successful counterfeit suppressions over our 150 year history.  We will continue to work closely with our network of law enforcement partners to combat criminal enterprises and protect the Nation’s financial infrastructure.”

Loz, along with 12 co-conspirators, were indicted by a federal grand jury on Aug. 7, 2014. According to court documents filed in the case, Loz was the leader of the racketeering enterprise that manufactured and distributed more than $70 million in counterfeit U.S. currency between 2004 and 2014. The enterprise was financed, in part, by brothers Arkadiy Bangiyev, 38, of Rego Park, New York, and Eduard Bangiyev, 40, of Forest Hills, New York, who operated a retail jewelry store in Long Island and then a gold refinery business in Manhattan’s diamond district.

Loz, along with the Bangiyev brothers and co-conspirator Ronen Fakiro, 47, also of Rishon Le Zion, Israel, manufactured the counterfeit currency on offset and lithography printing machinery in Israel and the United States and produced extremely high-quality notes which replicated the many security features of genuine currency.  At the height of its operations, the enterprise smuggled $3 million worth of counterfeit currency into the United States every three months.  The counterfeit was concealed inside shipping containers containing machinery.  Once the counterfeit was in the United States, the enterprise relied upon a network of distributors who obtained the counterfeit from the Bangiyev brothers.  The ultimate users of the counterfeit passed the notes at locations up and down the east coast of the United States. 

In 2014, Loz and Ronen Fakiro purchased a warehouse in Cherry Hill, New Jersey, to manufacture counterfeit $100 notes and recruited a married couple from Israel, Boaz and Ofra Borohov, 45 and 46, respectively, to assist them in the production of the notes.  Loz attempted to recreate and produce the security features of the most recently issued $100 bill but was unable to do so.  Instead, beginning in April 2014, the enterprise printed $5.3 million in counterfeit $100 bills.  On May 28, 2014, the U.S. Secret Service (USSS) executed a search warrant at the warehouse and essentially caught the Borohov’s “red handed” as they were operating heat press machines used to manufacture counterfeit currency.  That same day, the USSS also seized approximately $2.56 million in counterfeit $100 bills from Loz’s New York storage unit and other assets, including over $200,000 in genuine U.S. currency, along with jewelry, watches, diamonds, bank accounts, luxury cars and real estate.

*UPDATE* (Sept. 25, 2015) - All 13 defendants named in the original indictment have pleaded guilty and been sentenced.

Defendant Name & Age

Residence

Arrest Location & Date

Status

Itzhak Loz, 48

Rison Lezion, Israel

Jamaica, New York
May 28, 2014

Pleaded guilty Jan. 20, 2015. Sentenced to 180 months on Sept 18, 2015.

Ronin Fakiro, 47

Rison Lezion, Israel

Jamaica, New York
May 28, 2014

Pleaded guilty Jan. 20, 2015. Sentenced to 84 months on Sept. 21, 2015.

Boaz Borohov, 45

Tel Aviv, Israel

Cherry Hill, New Jersey
May 28, 2014

Pleaded guilty Feb. 6, 2015. Sentenced to 33 months on Sept. 9, 2015.

Ofra Borohov, 46

Tel Aviv, Israel

Cherry Hill, New Jersey
May 28, 2014

Pleaded guilty Feb. 6, 2015. Sentenced to 24 months on Sept. 9, 2015.

Arkadiy Bangiyev, 38

Rego Park, New York

Rego Park, New York
May 28, 2014

Pleaded guilty Jan. 20, 2015. Sentenced to 108 months on Sept. 21, 2015.

Eduard Bangiyev, 40

Forest Hills, New York

Scranton, Pennsylvania
May 28, 2014

Pleaded guilty Jan. 20, 2015. Sentenced to 96 months on Sept. 21, 2015.

Johnny Elegante Lee, 46

Glen Oaks, New York

Miami, Florida
June 1, 2014

Pleaded guilty Sept. 16, 2014. Sentenced to 36 months on Sept. 25, 2015.

Tarell Lavon Johnson, 27

Lynbrook, New York

Lynbrook, New York
May 28, 2014

Pleaded guilty Oct. 23, 2014. Sentenced to 36 months on Feb. 27, 2015.

Craig Johnson, 49

Douglasville, Georgia

Douglasville, Georgia
June 13, 2014

Pleaded guilty Oct. 1, 2014. Sentenced to 16 months on Feb. 13, 2015.

Shannon Lamont Smith, 45

Woodstock, Georgia

Atlanta, Georgia
May 28, 2014

Pleaded guilty Sept. 26, 2014. Sentenced to 24 months on July 31, 2015.

Fredrick Barrett, 33

Hempstead, New York

Hempstead, New York
May 28, 2014

Pleaded guilty Oct. 24, 2014. Sentenced to 36 months on Feb. 27, 2015.

Ramel Epps, 25

Freeport, New York

Freeport, New York
May 28, 2014

Pleaded guilty Oct. 20, 2014. Sentenced to 15 months on Feb. 20, 2015.

Brattie Guerra, 23

Freeport, New York

Freeport, New York
May 28, 2014

Pleaded guilty Oct. 3, 2014. Sentenced to 12 months on Feb. 20, 2015.

 

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and James M. Murray, Special Agent in Charge of the U.S. Secret Service's Washington Field Office, made the announcement after sentencing by U.S. District Judge Liam O’Grady.  This case was investigated by the USSS with assistance from U.S. Customs and Border Protection.  Assistant U.S. Attorneys Kimberly R. Pedersen and Gordon D. Kromberg 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.  1:14CR206.

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NORFOLK, Va. – Alonzo Diangelo Bell, 32, of Virginia Beach, pleaded guilty today to charges of manufacturing marijuana and maintaining drug-involved premises.

According to the statement of facts filed with the plea agreement, in February of 2015, Virginia Beach Police conducted surveillance of a storage facility located at the corner of Maxey Drive and Virginia Beach Boulevard after an officer who had been patrolling the area detected a strong odor of marijuana.  Bell who had been observed exiting one of the units of the storage facility was stopped for speeding.  During the stop, officers detected the odor of marijuana and searched Bell’s vehicle, but no contraband was found.  Later, when the police contacted the manager of the storage facility to inquire about Bell, they were informed that several complaints had been made about the smell of marijuana coming from the units that Bell was renting.  The manager consented to a search of units adjacent to the units Bell was renting.  When police determined that the marijuana odor was coming from the two storage units being rented by Bell, search warrants were executed.  In one unit, the police found approximately 1883 grams of marijuana.  In the second unit, police discovered a marijuana grow operation consisting of approximately 30 mature plants, a carbon dioxide generator and grow lights. The total weight of the marijuana seized was approximately 4.665 kilograms.  Latent fingerprints belonging to Bell were found on various items in both units.

Bell was indicted by a federal grand jury on Aug. 5, 2015. Bell faces maximum penalty of 30 years in prison when sentenced on Dec. 17, 2015.  Bell faces an enhanced maximum term of 10 years for manufacturing and possessing with intent to distribute marijuana and 20 years for maintaining drug-involved premises. 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 Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C. Field Office, made the announcement after the plea was accepted by U.S. District Judge Raymond A. Jackson.  Assistant U.S. Attorney Darryl Mitchell 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. 2:15-cr-99.

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RICHMOND, Va. – Maulana Rashada Harrison, aka Bah, 32, of Richmond, was sentenced today to 240 months in prison, followed by five years of supervised release for distributing heroin and being in possession of a firearm in furtherance of drug trafficking.

Harrison pleaded guilty on May 11, 2015, to two counts of an indictment charging him with possession with intent to distribute heroin, and with possession of a firearm in furtherance of drug trafficking.  According to the statement of facts filed with the court, on Oct. 10, 2014, law enforcement officers executed a search warrant at Harrison’s residence in Richmond. While clearing the apartment, officers observed a bag containing individually knotted baggy corners containing approximately 3.8 grams of heroin. Numerous additional items were also recovered during the search of the residence, including: a 9mm semi-automatic pistol; 8 rounds of 9 mm ammunition; a .38 caliber semi-automatic pistol with and obliterated serial number; 8 rounds of .38 ammunition; and two digital scales.  Harrison was arrested immediately following the search.  Both firearms and the ammunition had previously been shipped on interstate commerce.  At the time of his arrest, Harrison was advised of his rights, waived his rights, and admitted that all of the heroin and firearms located inside the residence belonged to him.

Harrison was sentenced to 180 months on the drug charge, and 60 months on the firearm charge. Those sentences will run consecutively, bringing the total prison time to 20 years. 

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; and Ray J. Tarasovic, Chief of City of Richmond Police Department, made the announcement after sentencing by U.S. District Judge Henry E. Hudson.

This case was investigated by the Richmond Police Department, and the Bureau of Alcohol Tobacco Firearms and Explosives. 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-48.

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NORFOLK, Va. – Wesley Paul Hadsell, 37, of Norfolk, was indicted by a federal grand jury today on charges of felon in possession of ammunition.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) Washington Field Office, made the announcement after the grand jury returned the indictment.  Assistant U.S. Attorney Benjamin L. Hatch 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. 2:15-cr-116.

An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.

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NORFOLK, Va. – Benjamin Lloyd Fisher, 42, of Chesapeake, was indicted by a federal grand jury today on charges of smuggling goods into the United States and being a prohibited person based on a prior domestic violence conviction.

According to court documents, the Alcohol, Tobacco, Firearms, and Explosives’ (ATF) investigation of a citizen of Canada revealed that he was smuggling firearms, silencers and mechanisms to convert a semi-automatic firearm into a machinegun, into the United States.  A search of the Canadian citizen’s email account revealed that he was selling silencers to Fisher, and together they had worked out a plan to smuggle the silencers into the United States.  A search warrant was executed at Fisher’s residence in Chesapeake where ATF agents found 13 firearms including pistols, rifles, shotguns, thousands of rounds of ammunitions, and six complete silencers and two silencer parts.  The defendant is a prohibited person as he was previously convicted of a domestic violence crime which makes it illegal for him to possess a firearm.

Fisher faces 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; and Charles E. Smith,  Special Agent in Charge of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) Washington Field Office, made the announcement after the grand jury returned an indictment today against Fisher.  Fisher had previously made an initial appearance before a U.S. Magistrate Judge on a criminal complaint.  Assistant U.S. Attorney William Muhr 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. 2:15-cr-271.

An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.

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RICHMOND, Va. – Steven (Yinhau) Chen, 33, of Fredericksburg, pleaded guilty today to conspiring to commit money laundering to promote his cigarette trafficking operation.

In a statement of facts filed with the plea agreement, between March 2014 and June 2015, Chen, the owner of several Fredericksburg-area small businesses, purchased at least $13.8 million in cigarettes from area wholesale stores for the express purpose of re-selling those same cigarettes to individuals trafficking the cigarettes for eventual re-sale in, among other northern destinations, Pennsylvania and New Jersey.  Chen would subsequently launder the cash proceeds of these cigarettes sales through at least 20 different bank accounts that Chen and others maintained with at least 10 different banks.  Chen maintained these bank accounts in the names of both his legitimate businesses and another business entity that existed only to receive and subsequently transfer the cash proceeds of Chen’s cigarette trafficking conspiracy.  During the 15 months at issue, at least $12.18 million of cigarette trafficking proceeds flowed into and through Chen’s bank accounts before being repurposed to pay off the credit card bills Chen incurred purchasing bulk cigarettes.  The vast majority of Chen’s deposits were made in amounts just under the $10,000 Cash Transaction Report threshold established by Congress.  As part of the plea agreement, Chen agreed to forfeit $1.21 million as proceeds of the offense.

Chen was charged by superseding criminal information on Sept. 15, 2015. Chin faces a maximum penalty of five years in prison when sentenced on Dec. 18, 2015. 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, made the announcement after the plea was accepted by U.S. District Judge Henry E. Hudson.  The case was investigated by officers of the Washington – Baltimore HIDTA task force’s Northern Virginia Financial Initiative.  Assistant U.S. Attorney Thomas Garnett 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. 3:15cr153.

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RICHMOND, Va. – Melvin Hinson, 56, of Kinsale, pleaded guilty today to the charge of possession of firearms with obliterated, removed, or altered serial numbers.

In a statement of facts filed with the plea agreement, Hinson, a retired Westmoreland County Sheriff’s deputy, admitted that starting before March 2014, and continuing through and including March 19, 2014, he received firearms from law enforcement agencies for the purpose of destroying the firearms for the agencies. But instead of destroying the firearms, Hinson removed the serial numbers from the firearms and sold or traded them.  According to the statement of facts, there were eight firearms involved, including a sawed-off shotgun and a sawed-off rifle.  All eight of the firearms entrusted to Hinson for destruction have been recovered by law enforcement.

Hinson, who was indicted by a federal grand jury on May 5, 2015, faces a maximum penalty of five years in prison when sentenced on Dec. 18, 2015. 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 J.D. Durastanti, Assistant Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), made the announcement after the plea was accepted by U.S. District Judge John A. Gibney.  Assistant U.S. Attorney Olivia L. Norman 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-081.

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ALEXANDRIA, Va. – PAE Government Services Inc. (PAE) and RM Asia (HK) Limited (RM Asia) have agreed to pay the United States $1.45 million to resolve allegations that they engaged in a bid-rigging scheme that resulted in false claims for payment under a U.S. Army contract for services in Afghanistan.

“This resolution, following criminal charges that were also brought against the individuals involved, represents the government’s efforts to use all of the criminal and civil tools available to the government to remedy fraudulent conduct,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia.

PAE, headquartered in Arlington, provides integrated global mission services.  RM Asia, located in Hong Kong, provides motor vehicle parts and supplies. In 2007, the Army awarded PAE a contract to provide vehicle maintenance capabilities and training services for the Afghanistan National Army at multiple sites across Afghanistan.  PAE partnered with RM Asia to supply and warehouse vehicle parts.  The government alleged that former managers of PAE and RM Asia funneled subcontracts paid for by the government to companies owned by the former managers and their relatives by using confidential bid information to ensure that their companies would beat out other, honest competitors.

 “Our national security and those of our allies depend on quality goods and services delivered at a fair price,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.  “Today’s settlement demonstrates our continuing vigilance to ensure that those doing business with the government do not engage in bidrigging or other anticompetitive conduct.”

In a related criminal investigation, this office previously obtained guilty pleas from former PAE program manager Keith Johnson; Johnson’s wife, Angela Gregory Johnson; and RM Asia’s former project manager, John Eisner, and deputy project manager, Jerry Kieffer, for their roles in the scheme.

The allegations resolved by this settlement arose from a lawsuit filed by Steven D. Walker, a former employee of PAE, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and share in the recovery.  Walker will receive $261,000.

This case was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the Eastern District of Virginia, the Defense Criminal Investigative Service, the U.S. Department of the Army Criminal Investigation Command-Major Procurement Fraud Unit and the Defense Contract Audit Agency.

The lawsuit is captioned United States ex rel. Walker v. PAE, et al., 1:11CV382-LO/TCB (E.D. Va.).  The claims resolved by the settlement are allegations only; there has been no determination of 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.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER.

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NORFOLK, Va. – Julian Manuel Moreno Martinez, 31, of Turbo, Antioquia, Colombia, was sentenced today to 144 months in prison for his role in a cocaine manufacturing and distribution conspiracy centered in Colombia.

Moreno Martinez pleaded guilty on May 11, 2015.  According to court documents, Moreno Martinez maintained farmland on the northern coast of Colombia where he provided storage and security for loads of cocaine that were in route for exportation to Central America and, ultimately, the United States.  He also personally arranged for transportation of cocaine loads and, at times, made deliveries and sales.  Over the course of approximately two years, Moreno Martinez was involved in the movement of over 1,800 kilograms of cocaine destined for the United States.   Moreno Martinez is the sixth member of this conspiracy sentenced to-date.

Name

Date of Guilty Plea

Sentencing

German Dario Brand Piedrahita

Sept. 23, 2014

Sentenced on March 3, 2015, to 144 months

Jose Nolber Zuluaga Otalvaro

Dec. 17, 2014

Sentenced on April 7, 2015, to 108 months

Hermes Andrade Quintero

March 12, 2015

Sentenced on June 22, 2015, to 164 months

 

Osvaldo Jose Lopez Herrera

March 23, 2015

Sentenced June 22, 2015, to 156 months

 

Sonia Cruz Quiceno

March 19, 2014

Sentenced Sept. 24, 2014, to 168 months

 

 

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; 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 Raymond A. Jackson. Assistant U.S. Attorneys V. Kathleen Dougherty and Kevin M. Comstock prosecuted the case.

This case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF) program, a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.

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. 2:13cr122.

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