Eastern District of Virginia

ALEXANDRIA, Va. – A multi-year investigation into the Nine Trey Gangsters Bloods criminal street gang, a set of the East Coast United Blood Nation, concluded yesterday as the final defendant in the district wide investigation pleaded guilty.

The Organized Crime Drug Enforcement Task Force (OCDETF) investigation into the Nine Trey Gangsters, designated Operation Ruby Red and Operation Full Blooded Ink, led to the arrest and prosecution of 37 gang members in the Eastern District of Virginia since 2013, resulting in a total of approximately 415 years in prison for the gang members. Much of the criminal activity in the investigation centered on the distribution of narcotics in Virginia, Maryland and the D.C. metro area, namely large quantities of crack cocaine. Other related criminal activity, which often accompanies criminal street gangs, was also discovered, including conspiracy to commit racketeering, violence in aid of racketeering, conspiracy to commit sex trafficking, conspiracy to commit armed robbery, conspiracy to distribute counterfeit currency, and possession and use of firearms.

“The ultimate success of this case is due in large part to the terrific effort of our prosecutors combined with our agency partners and case agents,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “My hope is that our efforts to investigate and prosecute these gang members will send a clear message to our communities: Violent gangs and their members will not be tolerated. They will be aggressively pursued and prosecuted at every opportunity.”  

“The results announced today are due in no small part to the coordination and cooperation of the law enforcement agencies and prosecutors focused on eliminating the threat posed by violent gangs in our region,” said Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office.  “We will continue to investigate violent gang members through collaborative efforts with the U.S. Attorney’s Office and the agencies that worked this case.”

Below is a complete list of the individuals who were prosecuted, and the respective outcome of their case:

Michael Smallwood, aka Heavenly Sovereignty, 45, of Manassas: Pleaded guilty on April 9, 2013, to conspiracy to distribute crack cocaine. Sentenced on July 10, 2013, to 30 years in prison.

Raymond Dawes, aka Veins, 35, of Manassas: Pleaded guilty on April 23, 2013, to conspiracy to distribute crack cocaine. Sentenced on July 23, 2013, to 12 years 7 months in prison.

Lovell Ritchie, aka Snax, 31, of Manassas: Pleaded guilty on April 23, 2013, to conspiracy to distribute crack cocaine.  Sentenced on Dec. 12, 2013, to 12 years 7 months in prison.

Amanda Ewell, aka Amanda Sovereignty, 30, of Manassas: Pleaded guilty on June 5, 2013, to conspiracy to distribute crack cocaine. Sentenced on Sept. 23, 2013, to 10 years in prison.

Brynn Lackey, aka BEZ, 33, of Washington DC: Pleaded guilty on July 3, 2013, to conspiracy to distribute crack cocaine. Sentenced on Oct. 01, 2013, to 10 years in prison.

Thaddaeus Snow, aka Storm, 25, of Manassas: Found guilty at trial on Feb. 21, 2014, of various crimes, including sex trafficking, distribution of narcotics, robbery and counterfeit money, violence in aid of racketeering, conspiracy to distribute 280 grams or more of crack cocaine, possession of a firearm, Hobbs Act Robbery, etc. Sentenced on May 9, 2014, to 40 years in prison.

Curtis Martino, aka Curtis Dodd, aka Red Rum, 31, of Elkridge, Maryland: Pleaded guilty on Nov. 20, 2013 to conspiracy to commit sex trafficking. Sentenced on March 21, 2014, to 21 years in prison.

William Sykes, aka Black Gambino, 31, of Bealeton: Found guilty at trial on Feb. 21, 2014, of various crimes, including sex trafficking, distribution of narcotics and counterfeit money, violence in aid of racketeering, conspiracy to distribute crack cocaine, and conspiracy to commit sex trafficking. Sentenced on May 9, 2014, to 30 years in prison.

George Williams, aka Champ, 30, of Bealeton: Pleaded guilty to conspiracy to commit racketeering, and use and discharge of a firearm during an act of violence in aid of racketeering. Sentenced on April 8, 2014, to 12 years in prison.

Markeith Kerns, aka LTK, 22, of Summerduck: Pleaded guilty on Oct. 16, 2013, to conspiracy to commit racketeering, and conspiracy to commit sex trafficking. Sentenced on Jan. 3, 2014, to 10 years in prison.

Janee Yates, aka Alazia, 25, of Warrenton: Pleaded guilty on Oct. 3, 2014, to conspiracy to commit racketeering, and conspiracy to distribute crack cocaine. Sentenced on Jan. 17, 2014, to 10 years in prison.

Deontae Holland, aka D-Boy, 29, of Bealeton: Pleaded guilty on Oct. 28, 2013, to conspiracy to commit racketeering, and conspiracy to distribute crack cocaine. Sentenced on Jan. 17, 2014, to 15 years in prison.

William Sharp Manning aka Ill Will, 26, of Warrenton: Pleaded guilty on Dec. 9, 2013, to conspiracy to commit racketeering, and conspiracy to distribute crack cocaine. Sentenced on March 7, 2014, to 15 years in prison.

James Watson, aka Black Kat, 36, of Gainesville: Pleaded guilty on Feb. 10, 2014, to conspiracy to commit racketeering with the predict acts being distribution of heroin, and marijuana and sex trafficking. Sentenced on April 28, 2014, to 2 ½ years in prison.

Christopher Head aka Briss, 27, of Washington, D.C.: Pleaded guilty on Nov. 25, 2014, to conspiracy to commit racketeering, and conspiracy to distribute crack cocaine. Sentenced on Feb. 21, 2014, to 11 years in prison.

Nicole Yates aka Merlot, 29, of Fairfax: Pleaded guilty on Oct. 3, 2013, to conspiracy to commit sex trafficking, and conspiracy to commit armed robbery. Sentenced on Jan. 3, 2014, to 10 years in prison.

Candy Minor, 30, of Fredericksburg: Pleaded guilty on Nov. 6, 2013, to conspiracy to commit sex trafficking. Sentenced on Jan. 24, 2014, to 2 years in prison.

Kaleef Tweedy, aka Bloody Tweed, 25, of Dumfries: Pleaded guilty on Dec. 13, 2013, to conspiracy to commit sex trafficking, conspiracy to commit armed robbery and using a firearm during a crime of violence in aid of racketeering. Sentenced on March 14, 2014, to 15 years in prison.

Justin Finley, aka J Mo, 26, of Manassas: Pleaded guilty on Nov. 26, 2013, to conspiracy to distribute crack cocaine. Sentenced on Feb. 28, 2014, to 11 years 8 months in prison.

Stephon Greene aka Blitz, 23, of Manassas: Pleaded guilty on Jan. 30, 2014, to conspiracy to distribute crack cocaine. Sentenced on April 18, 2014, to 10 years in prison.

LaTonya Snow, aka Lady Dynasty, 32, of Manassas: Pleaded guilty on Jan. 30, 2014, to conspiracy to violate the Mann Act by transporting prostitutes across state lines. Sentenced on April 18, 2014, to 90 days in prison and three years of active probation.

Devante Jordan, aka Trey, 23, of Alexandria: Pleaded guilty on Jan. 14, 2014, to conspiracy to commit armed robbery and using a firearm during a crime of violence. Sentenced on March 28, 2014, to 11 years 8 months in prison.

Aayron Marshal, aka Mook, 25, of Warrenton: Pleaded guilty on Oct. 10, 2013, to conspiracy to distribute crack cocaine. Sentenced on Jan. 17, 2014, to 10 years in prison.

Joshua Pendleton Brooks aka Wacko, 29, of Manassas: Pleaded guilty on Jan. 23, 2014, to conspiracy to distribute crack cocaine. Sentenced on April 8, 2014, to 5 years 10 months in prison.

Lionel Ritchie, aka Boogie, 31, of Remington: Pleaded guilty on Oct. 3, 2013, to conspiracy to distribute crack cocaine. Sentenced on Jan. 3, 2014, to 7 years in prison.

Jameel Aleem, aka Nino B, 33, of Washington, D.C.: Pleaded guilty on Nov. 12, 2014, to conspiracy to distribute crack cocaine. Sentenced on Dec. 12, 2014, to 3 years 4 months in prison.

Antwan Minor, aka Noid, 35, of Manassas: Pleaded guilty on Oct. 1, 2013, to conspiracy to distribute crack cocaine. Sentenced on Jan. 17, 2014, to 14 years in prison.

Deyonka Gaskins, 31, of Manassas: Pleaded guilty on Feb. 6, 2014, to conspiracy to distribute crack cocaine. Due to Gaskin’s lack of criminal history she was eligible for the safe valve guidelines for sentencing (which removes the ten year mandatory minimum portion of her final sentence). Sentenced to 6 days in prison and 3 years of active probation.

Gracier Isique, 30, of Manassas: Pleaded guilty on Jan. 16, 2014, to conspiracy to distribute crack cocaine. Sentenced to 3 years of active probation.

Ricardo Simmons, 26, of Alexandria: Pleaded guilty on April 21, 2014, to use and discharge of a firearm during an act of violence, and conspiracy to commit Hobbs Act robbery. Sentenced on July 11, 2014, to 12 years 6 months in prison.

Abdur Roland, aka Boo, 27, of Woodbridge: Pleaded guilty on Feb. 19, 2015, to Hobbs Act robbery, conspiracy to commit Hobbs Act robbery, brandishing of a firearm during an act of violence, and possession of a firearm by a convicted felon. Sentenced on May 08, 2015, 13 years in prison.

Brien Hughes, aka Poncho, 32, of Fredericksburg: Pleaded guilty on March 4, 2015, to two separate charges of brandishing of a firearm during an act of violence. Sentenced on Aug. 7, 2015, to 30 years in prison.

Jonathan Coleman, aka Swagg, 24, of Woodbridge: Pleaded guilty on March 18, 2015, to brandishing of a firearm during an act of violence. Sentenced on June 19, 2015, to 7 years in prison.

Robert Bates, aka Kid, 27, of Staunton: Pleaded guilty on April 16, 2015, to possession of a firearm during an act of violence. Sentenced on July 21, 2015, to 5 years in prison.

Joshua Lewis, aka Smiley, 25, of Woodbridge: Pleaded guilty on May 26, 2015, to possession of a firearm during an act of violence. Sentenced on Aug. 14, 2015, to 7 years in prison.

Dajuan Burrous, aka Baggz, 26, of Dumfries: Pleaded guilty on Sept. 3, 2015, to brandishing a firearm during or in a relation to a crime of violence. Sentencing set for Nov. 20, 2015.

The case was investigated by OCDETF, Operation Ruby Red.  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.

Agencies who participated in some or all of this investigation include: FBI’s Washington Field Office, Fairfax County Police Department, Northern Virginia Regional Gang Task Force, Hampton Police Department, Fauquier County Sheriff’s Office, Manassas City Police Department, Prince William County Police Department and the United States Marshal Service.  Assistant U.S. Attorneys Dennis Fitzpatrick, Angela Mastandrea-Miller, and Zach Terwilliger prosecuted the cases along with former Assistant U.S. Attorney Adam B. Schwartz and former Special Assistant U.S. Attorney Catherine Ahn.  The federal prosecutors were assisted by the Prince William and Spotsylvania County Commonwealth Attorneys’ Offices.

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. – The final defendant in a major drug case that ultimately dismantled a massive heroin trafficking operation in the Tidewater area pleaded guilty today. All eight co-conspirators have now pleaded guilty for their involvement in the organization’s distribution of between 30 and 90 kilograms of heroin.

Deyonta Hinton, 31, of Portsmouth, pleaded guilty today for his involvement in a massive heroin trafficking operation.  Hinton faces a mandatory minimum penalty of 20 years in prison and a maximum penalty of life in prison when he is sentenced on Dec. 10, 2015.

Alonzo Outten, the head of the Outten Organization, and seven of his co-conspirators were indicted by a grand jury earlier this month.  In the early morning hours of July 14, 2015, search warrants were executed simultaneously on 14 properties in Portsmouth, Chesapeake, and Suffolk, by more than 250 law enforcement officials from three states and the District of Columbia.  Seven weeks later all eight co-conspirators have pleaded guilty to conspiracy to manufacture, distribute, and possess with the intent to distribute heroin.

Name

Date of Guilty Plea

Date of Sentencing

Jermaine Jones

July 29, 2015

Oct. 29, 2015

Garnett Brown

July 29, 2015

Nov. 2, 2015

Latina Jackson

July 29, 2015

Nov. 5, 2015

Alonzo Outten

July 30, 2015

Nov. 2, 2015

Troy Gay

Aug. 6, 2015

Nov. 5, 2015

Jerald Outten

Aug. 10, 2015

Nov. 17, 2015

Sherita Nicks

Aug. 10, 2015

Nov. 17, 2015

Deyonta Hinton

Sept. 4, 2015

Dec. 10, 2015

 

According to the statement of facts in Deyonta Hinton’s case, he set up a base of operations to sell his heroin at the Sleep Inn and Comfort Suites motels on Western Branch Boulevard in Portsmouth. Hinton used at least six identified individuals to help facilitate the distribution of heroin and paid for one family member to live at the Sleep Inn to help generate a consistent presence that would regularly bring in heroin addicts.  Hinton, whose primary supplier of heroin was Alonzo Outten, admits to distributing more than 3.5 kilograms of heroin during the course of the conspiracy.

Alonzo Outten, the leader of the organization from November 2013 to July 2015, managed the manufacture and distribution of between 30 and 90 kilograms of heroin (an estimated street value between $1.5 and $4.5 million dollars).  The Outten Organization supplied kilogram amounts of heroin to at least two Bloods gang sets: the Imperial Gangsta Bloods led by “Godfather” Chris Smith aka Killa, who pleaded guilty July 28, 2015, and the Gorilla Mafia Piru gang led by “Godfather” Theodore Vann aka Flatline, who pleaded guilty on June 25, 2015.

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 plea were accepted by U.S. District Judge Mark S. Davis.

This case was investigated by the FBI’s Norfolk Field Office and the Chesapeake Police Department with the assistance of the Portsmouth Police Department, the Virginia State Police, and the Naval Criminal Investigative Service.  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 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-80 (Outten, et. al.); 2:15-cr-93 (Jackson); 2:15cr7 (Smith); and 2:15cr60 (Vann).                                                         

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NORFOLK, Va. – Robert James Gibson, 25, of Roxobel, North Carolina, pleaded guilty today to charges of possession of stolen firearms.

According to a statement of facts filed with the plea agreement, Gibson and a co-conspirator broke into AWH Arms in Virginia Beach and stole 22 firearms which Gibson and the co-conspirator were selling to people on the streets.  This case came to light when a drunken individual left a night club and started shooting a gun into the air.  After responding to a call about the shooting, police recovered the firearm and discovered it was stolen from the break-in at AWH Arms.  The drunken individual identified both Gibson and the co-conspirator who sold him the stolen firearm.

Gibson was indicted by a federal grand jury on June 3, 2015. Gibson faces a maximum penalty of 10 years in prison when sentenced on Dec. 3, 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 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 Mark S. Davis.  Assistant U.S. Attorney William D. 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-69.

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ALEXANDRIA, Va. – A Manassas man who served as a volunteer with the music programs at Osbourn High School and Grace E. Metz Middle School in Manassas has been charged by criminal complaint with production of child pornography.

According to court documents and court proceedings, David Alexander Battle, II, 23, who worked for a private music company in Manassas, was arrested by the Manassas City Police Department on June 16, 2015, after law enforcement executed a search warrant at his residence and discovered evidence of child pornography, including two gigabytes of videos that appeared to be child pornography involving infants. Other evidence found at Battle’s residence included child pornography primarily of young boys and girls.

Battle initially faced child pornography charges in Prince William County, however, as the investigation into his online activity continued, federal prosecutors became involved and he was charged federally on Aug. 6, 2015.  Battle is currently detained and awaiting trial.

Battle faces a mandatory minimum of 15 years in prison and a maximum penalty of 30 years, 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.

Anyone with information about this case is encouraged to contact the Northern Virginia-Washington, DC Internet Crimes Against Children (ICAC) Task Force, or the Manassas City Police Department Investigative Services Division at 703-257-8092.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Douglas W. Keen, Manassas City Chief of Police; and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, made the announcement after Battle’s initial appearance before U.S. Magistrate Judge Theresa Carroll Buchanan on Aug. 24, 2015.  Assistant U.S. Attorney Jay Prabhu 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-mj-416.

A criminal complaint 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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The U.S. government extradited U.S. citizen Kevin Dahlgren to the Czech Republic today to stand trial on murder charges in that country.

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

Dahlgren, 23, formerly of Sacramento, California, is wanted for the brutal murders of four of his extended family members, on or about May 21, 2013, at their home in Brno, Czech Republic.  According to court documents, Dahlgren was visiting those family members and left that country immediately after the murders.  On May 23, 2013, U.S. law enforcement authorities arrested Dahlgren upon his arrival in the United States at Dulles International Airport, Virginia, based upon a provisional arrest request by the government of the Czech Republic pursuant to its extradition treaty with the United States.

After hearings in 2013 before the U.S. District Court for the Eastern District of Virginia, Dahlgren’s extradition was certified.  Thereafter, Dahlgren’s further appeals were denied.  Dahlgren has been detained throughout his extradition proceedings and appeals.

The FBI, including personnel from the Legal Attache’s office in Prague, the Washington Field Office and the International Operations Division at FBI headquarters,  coordinated U.S. law enforcement efforts with Czech authorities and transported the fugitive to the Czech Republic.  The U.S. Attorney’s Office for the Eastern District of Virginia and the Criminal Division’s Office of International Affairs and Appellate Section represented the interests of the Czech Republic in proceedings before the U.S. courts.

Dahlgren Extradition Complaint

NEWPORT NEWS, Va. – Anika N. Greene, 42, of Bronx, New York, was convicted today by a federal jury on charges of conspiracy to commit bank and wire fraud, bank fraud, wire fraud, access device fraud and three counts of aggravated identity theft.

Green was charged in a superseding indicted on July 15, 2014. According to court records and evidence presented at trial, Greene and three other individuals, Jeffrey Washington, Alice Howard, and Catya J. Craig, burglarized Wells Fargo mortgage offices throughout New York, New Jersey, Connecticut and Maryland in 2012 and 2013. The defendants stole over 1,800 mortgage files that were then used in a variety of bank customer impersonation and retail credit fraud schemes, targeting various banks and retailers. Washington recruited individuals to go into banks, impersonate customers and remove funds via setting up business accounts and transferring funds from the accounts of bank customers. Washington and other defendants, including Greene, traveled from New York to the Eastern District of Virginia on multiple occasions throughout 2012 and 2013.

Green faces a maximum penalty of 30 years in prison for the conspiracy to commit bank and wire fraud, and bank fraud convictions; 20 years on the wire fraud conviction; 10 years on the access device fraud conviction; and 24 months consecutive to all other counts on each of the aggravated identity convictions. Green will be sentenced on December 3, 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.

Washington pleaded guilty to conspiracy to commit bank fraud and aggravated identity theft for which he was sentenced to 176 months in prison. Craig pleaded guilty to conspiracy to commit bank fraud and was sentenced to 21 months in prison. Howard pleaded guilty to conspiracy to commit bank fraud and aggravated identity theft and was sentenced to 65 months in prison.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Kathy A. Michalko, Special Agent in Charge of the U.S. Secret Service’s Washington 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 verdict was accepted by U.S. District Judge Arenda L. Wright Allen. Assistant U.S. Attorneys Brian J. Samuels and Kaitlin C. Gratton prosecuted the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:14-cr-32.

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ALEXANDRIA, Va. – Alexis Rahkeem Carter, aka Bishop, of Fairfax, pleaded guilty today to sex trafficking of a child.

In a statement of facts filed with the plea agreement, Carter was a member of a group known as “Scheme Team.” Scheme Team prostituted at least two teenage girls and one adult woman and operated in northern Virginia, Maryland, Pennsylvania, and West Virginia. Initially the gang robbed individuals and businesses, and eventually moved to selling narcotics and firearms, and sex trafficking.

To groom the minor victims for commercial sexual activity, Carter performed sex acts on the minor victims. Carter obtained sex customers for the women and girls he prostituted by posting advertisements on the Internet.  Carter also set the prices that the women and girls he prostituted were supposed to charge sex customers for commercial sex acts, ranging from $80 for a “short stay,” to $500 for sex acts that involved a customer having sex with two girls.  Carter instructed the victims to submit to any sex act that customers wanted to perform on them.  Victims were required to earn $1,000 per day, and Carter took nearly all of this money, even searching the victims to ensure that they were not withholding money from him. Carter told the victims that he had guns, and would threaten violence and sometimes used physical violence on the victims.

In addition to threats and violence, to keep the victims compliant Carter frequently provided them with alcohol and controlled substances, including prescription painkillers, molly, spice, and marijuana.

Carter faces a mandatory minimum penalty of 10 years in prison, and a maximum penalty of life in prison when sentenced on Nov. 13, 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 Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, made the announcement after the plea was accepted by U.S. District Judge Claude M. Hilton.

Carter was apprehended by officers from the Special Problems Unit of the Stafford County Sheriff’s Office after they discovered him prostituting a minor victim in Stafford County.

This case was investigated by ICE/HSI and the Stafford County Sheriff’s Office, with assistance from the Stafford County Commonwealth’s Attorney’s Office. Assistant U.S. Attorney Michael J. Frank 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-256.

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Ali Shukri Amin, 17, of Manassas, Virginia, was sentenced today to 136 months in prison to be followed by a lifetime of supervised release and monitoring of his internet activities for conspiring to provide material support and resources to the Islamic State in Iraq and the Levant (ISIL), a designated foreign terrorist organization.

Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Assistant Director in Charge Andrew G. McCabe of the FBI’s Washington, D.C., Field Office and Chief Stephan Hudson of the Prince William County, Virginia, Police Department made the announcement after sentencing by U.S. District Judge Claude M. Hilton of the Eastern District of Virginia.

 “Ali Shukri Amin is a young American who used social media to provide material support to ISIL,” said Assistant Attorney General Carlin.  “ISIL continues to use social media to send their violent and hateful message around the world in an attempt to radicalize, recruit and incite youth and others to support their cause.  More and more, their propaganda is seeping into our communities and reaching those who are most vulnerable.  The Department of Justice will continue to use all tools to disrupt the threats that ISIL poses, and our efforts will be furthered by parents and other members of our community willing to take action to confront and deter this threat wherever it may surface.”

“Today’s sentencing demonstrates that those who use social media as a tool to provide support and resources to ISIL will be identified and prosecuted with no less vigilance than those who travel to take up arms with ISIL,” said U.S. Attorney Boente.  “The Department of Justice will continue to pursue those that travel to fight against the United States and our allies, as well as those individuals that recruit others on behalf of ISIL in the homeland.”

“Today marks a personal tragedy for the Amin family and the community as we have lost yet another young person to the allure of extremist ideology focused on hatred,” said Assistant Director in Charge McCabe.  “Amin’s case serves as a reminder of how persistent and pervasive online radicalization has become.  The FBI, through our Joint Terrorism Task Forces, remains dedicated to protecting the United States against the ongoing violent threat posed by ISIL and their supporters.”

“Observations made by school staff and subsequent follow-up by the School Resource Officer were some of the earlier indicators of suspicious behavior regarding this individual,” said Chief Hudson.  “Those observations were quickly relayed to our partners with the JTTF who acted upon this information very quickly.  We greatly appreciate that these observations were observed and reported to the proper authorities proved to be instrumental in the overall investigation in stopping a dangerous network such as ISIL from further infiltrating our community.”

Amin pleaded guilty on June 11, 2015.  According to court documents, Amin admitted to using Twitter to provide advice and encouragement to ISIL and its supporters.  Amin, who used the Twitter handle @Amreekiwitness, provided instruction on how to use Bitcoin, a virtual currency, to mask the provision of funds to ISIL, as well as facilitation to ISIL supporters seeking to travel to Syria to fight with ISIL.  Additionally, Amin admitted that he facilitated travel for Reza Niknejad, an 18-year-old Prince William County resident who traveled to Syria to join ISIL in January 2015.  Niknejad was charged on June 10, 2015, in the Eastern District of Virginia with conspiring to provide material support to terrorists, conspiring to provide material support to ISIL and conspiring to kill and injure people abroad.

This case was investigated by the FBI’s Washington Field Office.  Assistant U.S. Attorney Michael P. Ben’Ary and Special Assistant U.S. Attorney Caroline H. Friedman of the Eastern District of Virginia prosecuted the case, with substantial assistance provided by Trial Attorney Stephen Sewell of the National Security Division's Counterterrorism Section.

RICHMOND, Va. – Connie Richardson, 65, of Richmond, was sentenced today to 24 months in prison, followed by three years of supervised release for bribery concerning a program receiving federal funds. Richardson was also ordered to pay $158,428.09 in restitution.

Richardson pleaded guilty on May 13, 2015. According to court documents, Richardson was employed by the Virginia Department of Juvenile Justice (VDJJ) as the Runaway Coordinator.  In that role, Richardson was responsible for administering services related to the interstate compact for juveniles, which governs the transportation of juveniles from one state to another.  Christopher C. Connor, 37, of Virginia Beach, Virginia, was the owner of Patriot Protective Services, Inc. (Patriot), a security company based in Norfolk, Virginia. In September 2010, VDJJ issued an invitation for bids soliciting sealed bids from contractors interested in providing transportation and escort services for juvenile offenders returning to the Virginia.  In October 2010, Patriot and another security company, Border Security Solutions, LLC (Border), were awarded contracts to provide transportation and escort services to VDJJ for a period of two years, with an option to renew the contracts for three successive years.  One week after the contracts were awarded, Connor paid Richardson $1,500 and continued to make periodic payments to Richardson from October 2010 through February 2015.  During that period of time, Connor paid Richardson over $30,000 via cash, checks, deposits to a prepaid Visa card, and transfers between SunTrust bank accounts. 

In exchange for these payments from Connor, Richardson steered the vast majority of VDJJ’s transportation and escort requests to Patriot.  She also knowingly approved inflated and falsified invoices submitted to Patriot.  Richardson was informed by Border’s owner that his company had the capacity to transport more juveniles and charged less per hour for transportation and escort services than Patriot. Nonetheless, Richardson stopped assigning any new work to Border and Border closed for lack of business in September 2011. 

As a result of the relationship between Richardson and Connor, VDJJ paid Patriot over $469,000 for transportation and escort services from October 2010 through February 2015.

Connor pleaded guilty on July 28, 2015 and will be sentenced on Oct. 29, 2015.

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 Robert E. Payne.

This case was investigated by the FBI and the Virginia State Police.  Assistant U.S. Attorney Katherine Lee Martin 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 Nos. 3:15-cr-78 and 3:15-cr-133.

ALEXANDRIA, Va. – Ali Shukri Amin, 17, of Manassas, Virginia, was sentenced today to 136 months in prison, followed by a lifetime of supervised release and monitoring of his internet activities, for conspiring to provide material support and resources to the Islamic State in Iraq and the Levant (ISIL), a designated foreign terrorist organization.

“Today’s sentencing demonstrates that those who use social media as a tool to provide support and resources to ISIL will be identified and prosecuted with no less vigilance than those who travel to take up arms with ISIL,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia.  “The Department of Justice will continue to pursue those that travel to fight against the United States and our allies, as well as those individuals that recruit others on behalf of ISIL in the homeland.”

“Ali Shukri Amin is a young American who used social media to provide material support to ISIL,” said John Carlin, Assistant Attorney General for National Security.  “ISIL continues to use social media to send their violent and hateful message around the world in an attempt to radicalize, recruit and incite youth and others to support their cause.  More and more, their propaganda is seeping into our communities and reaching those who are most vulnerable.  The Department of Justice will continue to use all tools to disrupt the threats that ISIL poses, and our efforts will be furthered by parents and other members of our community willing to take action to confront and deter this threat wherever it may surface.”

“Today marks a personal tragedy for the Amin family and the community as we have lost yet another young person to the allure of extremist ideology focused on hatred,” said Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office.  “Amin’s case serves as a reminder of how persistent and pervasive online radicalization has become. The FBI, through our Joint Terrorism Task Forces, remains dedicated to protecting the United States against the ongoing violent threat posed by ISIL and their supporters.”

“Observations made by school staff and subsequent follow-up by the School Resource Officer were some of the earlier indicators of suspicious behavior regarding this individual,” said Stephan Hudson, Chief of Prince William County Police Department. “Those observations were quickly relayed to our partners with the JTTF who acted upon this information very quickly. We greatly appreciate that these observations were observed and reported to the proper authorities proved to be instrumental in the overall investigation in stopping a dangerous network such as ISIL from further infiltrating our community.”

Amin pleaded guilty on June 11, 2015.  According to court documents, Amin admitted to using Twitter to provide advice and encouragement to ISIL and its supporters.  Amin, who used the Twitter handle @Amreekiwitness, provided instruction on how to use Bitcoin, a virtual currency, to mask the provision of funds to ISIL, as well as facilitation to ISIL supporters seeking to travel to Syria to fight with ISIL.  Additionally, Amin admitted that he facilitated travel for Reza Niknejad, an 18-year-old Prince William County resident who traveled to Syria to join ISIL in January 2015.  Niknejad was charged on June 10, 2015, in the Eastern District of Virginia with conspiring to provide material support to terrorists, conspiring to provide material support to ISIL, and conspiring to kill and injure people abroad.

U.S. District Judge Claude M. Hilton presided over the case and delivered the sentence. This case was investigated by the Joint Terrorism Task Force of the FBI’s Washington Field Office. Assistant U.S. Attorney Michael P. Ben’Ary and Special Assistant U.S. Attorney Caroline H. Friedman prosecuted the case. Substantial assistance was provided by Trial Attorney Stephen Sewell of the National Security Division's Counterterrorism Section.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-164.

ALEXANDRIA, Va. – Five men have pleaded guilty to multiple felonies arising from a five-year conspiracy to defraud banks by manufacturing fraudulent checks using compromised account information and to deposit the checks into bank accounts under false identities. 

The following men have pleaded guilty to felonies arising from this conspiracy: Ray Ekobena, 27, of Alexandria; Stefan Ekobena, 24, of Atlanta; Rodney Hardy, 25, of Hyattsville, Maryland; Alan Lamin, 25, of Washington, D.C.; and Jerome Johnson, 32, of Washington, D.C.

According to statements of fact filed with the plea agreements, Ray Ekobena and his younger brother, Stefan Ekobena, printed fraudulent checks using victims’ bank account information.  The Ekobenas’ obtained this information by enlisting bank tellers and other insiders who had access to sensitive personal information through their employment.  Co-conspirators such as Hardy, Lamin, and Johnson furthered the conspiracy by depositing the fraudulent checks into bank accounts under false names and withdrawing the resulting funds before the banks discovered the fraud.  Ray Ekobena also obtained loans in the names of his identity theft victims to buy luxury vehicles, including a Mercedes-Benz, a Porsche, and an Audi. In total, the conspiracy victimized over 200 individuals, small businesses, and charities, including the Leukemia & Lymphoma Society and the Children’s National Medical Center.

The defendants were indicted by a federal grand jury on June 25, 2015.  For the bank fraud conspiracy, they each face a maximum penalty of 30 years in prison when sentenced in November 2015. Ray and Stefan Ekobena will also receive a mandatory two-year sentence for their convictions for aggravated identity theft.  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; David G. Bowers, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service (USPIS); Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; and Colonel Edwin C. Roessler Jr., Chief of the Fairfax County Police Department, made the announcement after the final plea was accepted by U.S. District Judge Claude M. Hilton.  Assistant U.S. Attorney Kellen S. Dwyer and Special Assistant U.S. Attorney Joseph V. Longobardo 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-180.

A North Carolina man pleaded guilty today to reproducing and distributing without permission millions of infringing digital copies of copyrighted works, including copies of popular songs and albums before they were commercially available. 

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Special Agent in Charge Clark E. Settles of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) in Washington, D.C., made the announcement.

Rocky P. Ouprasith, 23, of Charlotte, North Carolina, pleaded guilty to one count of criminal copyright infringement before U.S. Magistrate Judge Douglas E. Miller of the Eastern District of Virginia.  Sentencing is scheduled for Nov. 17, 2015.

According to admissions made in connection with his guilty plea, between May 2011 and October 2014, Ouprasith operated RockDizMusic.com, a website originally hosted on servers in France and later in Canada, from which Internet users could find and download infringing digital copies of popular, copyrighted songs and albums.  Ouprasith admitted that he obtained digital copies of copyrighted songs and albums from online sources, and that he encouraged and solicited others, referred to as “affiliates,” to upload digital copies of copyrighted songs and albums to websites, including RockDizFile.com, that were hosted on servers in Russia, France and the Netherlands, and that hosted hyperlinks to content being offered for download on RockDizMusic.com.  Ouprasith further admitted that to encourage such activity, he agreed to pay the affiliates based on the number of downloads from his website.

According to the Recording Industry Association of America, in 2013, RockDizFile.com was the second-largest online file sharing website specializing in the reproduction and distribution of infringing copies of copyrighted music in the United States.  Ouprasith admitted that, in 2013 and 2014, he either ignored or pretended to take remedial action in response to complaints from copyright holders and their representatives that the website contained links to infringing copies protected songs and albums.

In October 2014, federal law enforcement authorities shut down RockDizMusic.com and RockDizFile.com, and law enforcement authorities in the Netherlands and France seized file-hosting servers utilized by Ouprasith. 

In connection with his guilty plea, Ouprasith admitted that the market value of his illegally pirated material was more than $2.5 million.

This case is being investigated by ICE-HSI.  The case is being prosecuted by Assistant Deputy Chief for Litigation John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Randy Stoker of the Eastern District of Virginia.  The CCIPS Cyber Crime Lab, the Criminal Division’s Office of International Affairs, as well as Dutch, French and Canadian law enforcement officials have provided significant assistance.

The enforcement action announced today is related to the many efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force).  The IP Task Force supports prosecution priorities, promotes innovation through heightened civil enforcement, enhances coordination among federal, state, and local law enforcement partners, and focuses on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders.  To learn more about the IP Task Force, go to www.justice.gov/dag/iptaskforce.

Ouprasith Plea Agreement

Ouprasith Statement of Facts

NORFOLK, Va. – A North Carolina man pleaded guilty today to reproducing and distributing without permission millions of infringing digital copies of copyrighted works, including copies of popular songs and albums before they were commercially available.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Special Agent in Charge Clark E. Settles of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) in Washington, D.C., made the announcement.

Rocky P. Ouprasith, 23, of Charlotte, North Carolina, pleaded guilty to one count of criminal copyright infringement before U.S. Magistrate Judge Douglas E. Miller in Norfolk, Virginia. Sentencing is scheduled for Nov. 17, 2015.

According to admissions made in connection with his guilty plea, between May 2011 and October 2014, Ouprasith operated RockDizMusic.com, a website originally hosted on servers in France and later in Canada, from which Internet users could find and download infringing digital copies of popular, copyrighted songs and albums. Ouprasith admitted that he obtained digital copies of copyrighted songs and albums from online sources, and that he encouraged and solicited others, referred to as “affiliates,” to upload digital copies of copyrighted songs and albums to websites, including RockDizFile.com, that were hosted on servers in Russia, France and the Netherlands, and that hosted hyperlinks to content being offered for download on RockDizMusic.com. Ouprasith further admitted that to encourage such activity, he agreed to pay the affiliates based on the number of downloads from his website.

According to the Recording Industry Association of America, in 2013, RockDizFile.com was the second-largest online file sharing website specializing in the reproduction and distribution of infringing copies of copyrighted music in the United States. Ouprasith admitted that, in 2013 and 2014, he either ignored or pretended to take remedial action in response to complaints from copyright holders and their representatives that the website contained links to infringing copies protected songs and albums.

In October 2014, federal law enforcement authorities shut down RockDizMusic.com and RockDizFile.com, and law enforcement authorities in the Netherlands and France seized file-hosting servers utilized by Ouprasith.

In connection with his guilty plea, Ouprasith admitted that the market value of his illegally pirated material was more than $2.5 million.

This case is being investigated by ICE-HSI. The case is being prosecuted by Assistant Deputy Chief for Litigation John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Randy Stoker of the Eastern District of Virginia. The CCIPS Cyber Crime Lab, the Criminal Division’s Office of International Affairs, as well as Dutch, French and Canadian law enforcement officials have provided significant assistance.

The enforcement action announced today is related to the many efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). The IP Task Force supports prosecution priorities, promotes innovation through heightened civil enforcement, enhances coordination among federal, state, and local law enforcement partners, and focuses on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to www.justice.gov/iptf.

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-95.

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ALEXANDRIA, Va. – Following a year-long investigation by a task force of federal and local law enforcement officers in four states and the District of Columbia, the United States has charged fourteen defendants in a federal indictment with conspiracy to distribute five kilograms or more of cocaine.

According to the indictment, which was issued yesterday, the defendants represent various components in a criminal enterprise responsible for importing bulk quantities of cocaine from Mexico into the United States and distributing it throughout the Washington, D.C. metropolitan area. The defendants include alleged street level dealers with ties to the transnational 18th Street gang. During the course of arrests in June 2015, agents recovered multiple firearms, distribution quantities of cocaine, and over $45,000 in U.S. currency.

The defendants charged in yesterday’s indictment include:

• Roberto Carlos Esparza Suarez, also known as “Soldier,” 26, of Dale City, Virginia

• Joaquin Santana Rivera Mejia, also known as “Chino,” 37

• Christopher Flores, also known as “Magic,” 36, of Gaithersburg, Maryland

• Juan Delao, also known as “Tony” and “Chiki,” 41, of Triangle, Virginia

• Josue Emmanuel Rivera Lemus, also known as “Chipi,” 32, of Riverdale, Maryland

• Fredy Armando Pereira, also known as “Shakira” and “Rat,” 36, of Adelphi, Maryland

• Lisette Natali Cordova, 24, of Dale City, Virginia

• Laura Shepherd, 38, of Berwyn Heights, Maryland

• Jose Komairo Hernandez Lopez, 34, of Woodbridge, Virginia

• Alexander Lorenzo, 33, of Hyattsville, Maryland

• Jeovany Francisco Andrade, 29, of Rockville, Maryland

• Marco Valdez Hernandez, 35, of Denver, Colorado

• Jorge Enrique Mendez Limon, 34, of Berwyn Heights, Maryland

• Luis Manuel Villa Castelan, 34, of the Bronx, NY

Almost all of the defendants face a minimum penalty of ten years and a maximum penalty of life in prison if convicted. The minimum and maximum statutory sentences are prescribed by Congress and are provided here for informational purposes only, as the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

Furthermore, eight guilty pleas have been entered by co-conspirators in this case. Those include:

• Edgar Hernandez, also known as “Pelon,” 33, of Berwyn Heights, Maryland, who pleaded guilty on August 18, 2015 to charges of conspiracy to distribute five kilograms or more of cocaine and possession of a firearm used in furtherance of a drug trafficking crime.

• Jose Ulloa Sanchez, also known as “Alfredo Ulloa” and “Mexico,” 35, of Dumfries, Virginia, who pleaded guilty on August 18, 2015 to a charge of conspiracy to distribute five kilograms or more of cocaine.

• Jessica Hernandez, of Berwyn Heights, Maryland, who pleaded guilty on August 19, 2015 to a charge of conspiracy to distribute five kilograms or more of cocaine.

• Walter Blanco Lopez, 21, of Alexandria, Virginia, who pleaded guilty on August 19, 2015 to a charge of conspiracy to distribute cocaine.

• Guillermo Castellon, also known as “Memo,” 27, of Woodbridge, Virginia, pleaded guilty on August 13, 2015 to a charge of conspiracy to distribute 500 grams or more of cocaine.

• Rodrigo Torres, also known as “Jerry Reyes,” 29, of Riverdale, Maryland pleaded guilty August 11, 2015 to a charge of conspiracy to distribute five kilograms or more of cocaine.

• Oscar Marroquin, also known as “Joker,” 27, of Manassas, Virginia, pleaded guilty on August 13, 2015 to a charge of conspiracy to distribute 500 grams or more of cocaine.

• Sifredo Anthony Barrientos, also known as “Big Boy,” 24, of Manassas, Virginia, pleaded guilty on July 17, 2015 to a charge of conspiracy to distribute 500 grams or more of cocaine.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington; and Stephan M. Hudson, Prince William County Chief of Police, made the announcement after the pleas were accepted by U.S. District Judges Gerald Bruce Lee, Claude M. Hilton, and James C. Cacheris.

This case was investigated by the FBI’s Washington Field Office, ICE-HSI Washington, and the Prince William County Police Department. Special Assistant U.S. Attorneys Jennifer A. Clarke and Andrea Duvall 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-183.

RICHMOND, Va. – A federal prison guard in Petersburg, Virginia pleaded guilty yesterday to accepting bribes in exchange for smuggling cigarettes to inmates.

Jermaine Brown, 37, of Chesterfield, Virginia, pleaded guilty to one count of bribery of a public official. In a statement of facts filed with the plea agreement, Brown admitted that he accepted bribes in exchange for providing contraband cigarettes to inmates while he was employed as a correctional officer at Federal Correctional Institute–Petersburg. After providing the contraband cigarettes, Brown instructed the inmates to have their friends or family members wire transfer money to a known associate of Brown.

On or about February 10, 2011, Brown’s associate picked up two Western Union wire transfers totaling $1,450 sent by or on behalf of the inmates, and the associate delivered the money to Brown as a bribe for providing contraband cigarettes to inmates at FCI Petersburg. As part of his plea, Brown agreed that he received and accepted a total of $3,050 in bribes from federal inmates.

As a result of his conduct, Brown will be terminated from his employment as a federal correctional officer. Brown faces a maximum penalty of 15 years in prison when he is sentenced on November 19, 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; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; and Michael Tompkins, Special Agent in Charge of the Department of Justice Office of the Inspector General’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge M. Hannah Lauck.

This case was investigated by the Department of Justice Office of Inspector General and the FBI’s Richmond Field Office. Assistant U.S. Attorneys Erik S. Siebert and Michael C. Moore 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-93.

ALEXANDRIA, Va. – SB Medical Inc., and TC Medical Group, companies based in Toronto, Canada, and St. Michael, Barbados, were fined $45 million and required to forfeit another $30 million for orchestrating a multi-year conspiracy to smuggle misbranded prescription pharmaceuticals into the United States. During the conspiracy, SB Medical Inc. and TC Medical Group received over $33 million in proceeds from selling misbranded prescription pharmaceuticals to U.S. doctors and clinics.

SB Medical, Inc. and TC Medical Group pleaded guilty on May 7, 2015. According to court documents, from at least 2011 through 2014, the companies smuggled orthopedic injections, rheumatology infusions, cosmetic devices, optomology products, and oncology drugs into the United States. The non-FDA approved prescription pharmaceuticals were sourced from other foreign countries, including India, Turkey, France, Italy, and other countries. The pharmaceuticals included Lucentis, Mabthera, Botox, Dysport, Euflexxa, Remicade, Restylane, Synvisc, Prolia, Orencia, Orthovisc, and other products.

Members of the conspiracy working for SB Medical Inc. and TC Medical Group used false names to sell the pharmaceutical products throughout the United States. To smuggle pharmaceuticals across the U.S. border, large shipments were broken down into multiple small shipments. Those shipments were sent to addresses in Maryland, New Jersey, Florida, and other locations under different false names over several days. Customs forms falsely stated the contents and value of the shipments. Drop shippers in the United States received these packages, removed indicia that they were from abroad, and re-shipped them to doctors and clinics in the United States so that packages would have a United States-based return address. These drop shippers stored the drugs and medical devices in the basements of their private residences, often in violation of safety regulations requiring the pharmaceuticals to be stored at cool temperatures.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; George M. Karavetsos, Director, FDA Office of Criminal Investigations; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington; and David G. Bowers, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after the sentence was imposed by U.S. District Judge Anthony J. Trenga.

This case was investigated by the FDA’s Office of Criminal Investigations, ICE-HSI, and the U.S. Postal Inspection Service. Assistant U.S. Attorneys Kellen S. Dwyer and Jay V. Prabhu 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. 1:14-cr-397.

ALEXANDRIA, Va. – Rosita Vilchez, 39, a fugitive in Lima, Peru, until she was extradited to the United States in June 2015, pleaded guilty yesterday to leading a wide-ranging mortgage fraud conspiracy that targeted hundreds of victims in the northern Virginia Hispanic community. The mortgage fraud scheme, which operated between August 2005 and August 2007, generated nearly $7.4 million in fraudulent proceeds and caused losses of more than $15 million to lenders, most of which were federally insured.

Vilchez pleaded guilty to conspiracy to commit bank fraud and wire fraud affecting a financial institution. According to court documents, Vilchez operated a real estate firm (Vilchez & Associates), a title insurance company (Pino Title), and the branch of a loan brokerage business (Mount Vernon Capital Corporation) in Manassas, Va., all of which she used to carry out the fraud scheme. Vilchez and her co-conspirators submitted fraudulent loan documents that falsified their real estate clients’ income, employment, and assets so that they could obtain loans to buy property through Vilchez & Associates, which received commissions of as much as six percent of the selling price of every home.

The Vilchez conspiracy targeted Hispanic clients who were not proficient in spoken or written English, and the borrowers often were unable to read their loan documents and were unaware of the false statements submitted to the lenders on their behalf. According to court filings, the fraudulent loan applications made it possible for the borrowers to qualify for loans they could not afford to repay. Most of these borrowers later lost their homes to foreclosure.

To date, thirteen defendants have been convicted in connection with this conspiracy. Vilchez faces a maximum penalty of 30 years in prison when she is sentenced on December 4, 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; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; and Matthew Alessandrino, FDIC Assistant Inspector General for Investigations, made the announcement after the plea was accepted by U.S. District Judge Liam O’Grady.

This case was investigated by the FBI’s Washington Field Office and the FDIC’s Office of Inspector General. Assistant U.S. Attorneys James P. Gillis and Julia K. Martinez 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. 1:12-cr-394.

RICHMOND, Va. – Sean M. Weaver, 33, of Alexandria, Virginia, pleaded guilty today to mail fraud and money laundering for filing false claims resulting in over $20 million in sales and use tax refunds to two corporate clients.

According to a statement of facts filed with the plea agreement, Weaver was a member of the transaction tax practice group in the Arlington, Virginia office of Ryan LLC, a tax services firm headquartered in Dallas, Texas. The transaction tax practice group specialized in submitting claims to state and local taxing authorities to obtain refunds of sales and/or use tax overpayments made by Ryan LLC’s corporate clients. Ryan LLC generally entered into compensation agreements with its clients whereby it would receive as a fee a percentage of the overpayments that it recovered on behalf of its clients.

Weaver managed a team of 10 to 15 employees and was responsible for submitting claims to the state taxing authorities on behalf of Ryan LLC’s clients. For engagements to which he and his team were assigned, Weaver would receive as a bonus payment a percentage of the fee received by Ryan LLC.

Between October 2011 and December 2014, Weaver submitted and caused to be submitted several false claims for sales and/or use tax refunds to the Virginia Department of Taxation and the Texas Comptroller of Public Accounts on behalf of two of Ryan LLC’s corporate clients. In submitting the false claims, Weaver manipulated client transactional data and falsified invoices and other transactional records to inflate the amount of sales and/or use tax actually paid by the clients during certain transactions. As a result of the scheme, the state taxing authorities issued over $20 million in fraudulent refunds to Ryan LLC clients and Weaver received over $350,000 in personal bonus payments.

Ryan LLC voluntarily reported Weaver’s actions to law enforcement and fully cooperated in the investigation. As part of the plea agreement, Weaver admitted that he acted alone and that no one else from Ryan LLC or its clients took part in the scheme. Weaver further agreed to forfeit $250,480 seized by the United States as property involved in the offense and the value of his account with a peer-to-peer lending company.

Weaver faces a maximum penalty of 30 years in prison sentenced on December 1, 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; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; Thomas Jankowski, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); and David G. Bowers, Acting Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service (USPIS), made the announcement after the plea was accepted by U.S. District Judge John A. Gibney, Jr.

This case was investigated by the FBI’s Richmond Field Office, IRS-CI, and USPIS. Assistant U.S. Attorneys Dominick S. Gerace and Michael S. Dry 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-139.

RICHMOND, Va. – Aldair Hodza, 36, and Laura Sorensen, 31, of Clive, Iowa, were sentenced today for their roles in a heinous crime involving the kidnapping, forced prostitution, and torture of a young woman the couple kidnapped in Iowa. 

Hodza was sentenced to 500 months (41.6 years) in prison and Sorensen was sentenced to 480 months (40 years) in prison, each to be followed by 20 years of supervised release. They were also ordered to pay restitution to the victim for her medical care, and both will be required to register as sex offenders. Hodza, who is not a United States citizen, will be subject to deportation upon completion of his sentence.

“This couple coerced and kidnapped a young woman who trusted them,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “They drugged her, physically and sexually abused her, prostituted her, and tortured her. For that, they will spend the better part of the rest of their lives in prison. The Eastern District of Virginia has always aggressively pursued sex trafficking crimes, and we will continue to do so. I would like to thank the trial team of Angela Mastandrea-Miller, Heather Hart, and Dominick Gerace, and our investigative partners for their hard work on this case.”

“This case shocks our conscience and reminds us that evil does exist in the world,” said Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office.  “There is no punishment for the perpetrators of this heinous crime which will undo the trauma suffered by their victim.  I hope today’s sentencing, however, gives her some comfort that they no longer pose a threat.  The quick thinking and heroic action by a trucker and the keen instinct and honed professionalism of a Virginia State Police trooper are what saved the victim in this case.  The FBI thanks each of them for their vigilance and service.  Success in cases like this requires citizens to be aware of their surroundings and immediately report suspicious situations to authorities.” 

Hodza and Sorensen pleaded guilty to charges of sex trafficking by force, fraud, or coercion, and interstate transportation of a person for prostitution on May 1, 2015.  According to court documents, the defendants admitted that on Dec. 19, 2014, they convinced the victim to join them in their recreational vehicle (RV) using a ruse.  When the victim arrived, the defendants took away her phone, forced her to consume alcohol and marijuana, and sexually assaulted her.  The defendants told the victim that she was no longer free to leave, and they forced her into prostitution for the next several days.  

On Christmas Eve 2014, the defendants began their trip to Virginia to visit Hodza’s minor daughter, forcing the victim to accompany them. The defendants attempted to prostitute the victim along the trip at various truck stops.  Upon arriving in Virginia several days later, the pair went to various campgrounds in Virginia and North Carolina, where they continued to force the victim to engage in prostitution.  During this time, the defendants engaged in a pattern of torture and abuse toward the victim while Hodza’s minor daughter was present in the RV. This included “hog-tying” the victim and holding her down while they burned her on her back and abdomen with a key and scissors that had been heated on a stove; kicking her repeatedly and viciously, causing severe injuries to the victims legs, abdomen, and torso; putting cigarettes out on the victim’s back and chest; whipping the victim with a rope; driving nails into the victim’s feet; spraying bleach into the victim’s wounds; and hitting her over the head with a bottle.  The defendants repeatedly told the victim that they were going to kill her.   

On Jan. 6, 2015, New Kent County Sheriff’s Deputies and Virginia State Police troopers responded to a call at a gas station in Providence Forge, Virginia, after a concerned truck driver observed suspicious behavior coming from the RV.  Upon arriving, the officers entered the RV and observed the victim displaying signs of fright and malnourishment. They removed her from the RV to speak with her alone, at which time the victim told the officers that she had been kidnapped and was being held against her will. The victim showed the officers some of the injuries that had been inflicted on her by Hodza and Sorensen. The victim was immediately transported to the hospital where she remained in the burn unit for more than a week. Seven months after being rescued, the victim is still being treated for her injuries. 

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 Henry E. Hudson, who cited the depravity and severe torture inflicted by the defendants on the victim, and the long-term damage the defendants caused to the victim and Hodza’s daughter as just some of the reasons for imposing the sentences of 40 plus years.

This case was investigated by the FBI’s Richmond Field Office, the New Kent County Police Department, and Virginia State Police. Assistant U.S. Attorneys Angela Mastandrea-Miller, Heather L. Hart, and Dominick S. Gerace prosecuted the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15-cr-032.

An Ashburn, Virginia, resident was sentenced to prison today for mortgage and tax fraud, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Dana J. Boente of the Eastern District of Virginia.

Charise Stone, 46, was convicted by a federal jury on May 27 of 13 counts of mortgage fraud, passing fictitious financial instruments and tax fraud.  U.S. Senior District Judge Claude M. Hilton of the Eastern District of Virginia sentenced Stone to serve five years in prison to be followed by three years of supervised release, and ordered her to forfeit $721,552.55 and pay $2,330,722 in restitution to the victim financial institutions and $143,218 in restitution to the Internal Revenue Service (IRS).  

According to court records and evidence introduced at trial, from 2007 to 2010, Stone targeted distressed homeowners who owed more on their mortgage loan than the market value of the home with false promises of financial recovery.  Stone acquired the distressed homeowners’ properties in her own name or under entities she controlled, made false representations to mortgage lenders in order to induce approval of the short sales and then resold the properties – often the same day or the next – to new buyers at a price above the short sale amount in violation of agreements made with mortgage lenders.

Co-defendant Jose Marinay owned a settlement company that closed every short sale transaction for Stone.  Marinay pleaded guilty to wire-fraud conspiracy on May 27, 2014.  At his and Stone’s direction, fraudulent HUD-1 settlement statements were prepared to facilitate the transactions.  Stone destroyed some of the incriminating documents after closings.  Financial institutions suffered at least $2.2 million in losses from the scheme.  Stone profited more than $700,000 from these transactions and failed to file individual income tax returns.  She also sent fictitious bonds to the IRS in an attempt to pay off her tax liability, and sent fake international promissory notes to creditors purporting to satisfy her credit card debt as well as her mortgage loan.

Acting Assistant Attorney General Ciraolo and U.S. Attorney Boente commended special agents of the FBI Washington Field Office and IRS-Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Uzo Asonye of the Eastern District of Virginia and Assistant Chief Todd A. Ellinwood of the Tax Division, who prosecuted the case.

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

ALEXANDRIA, Va. – Charise Stone, 46, of Ashburn, Virginia, was sentenced today to 60 months in prison, followed by three years of supervised release for her role in a real estate short sale scheme that included tax and mortgage fraud, and passing fraudulent financial documents. Stone was also ordered to forfeit $721,552, and ordered to pay restitution of $2,441,174 to the victim financial institutions and the IRS.

Stone was found guilty by a federal jury on May 27, 2015. According to court documents, from 2007 to 2010 Stone targeted distressed homeowners who owed more on their mortgage loan than the market value of the home with false promises of financial recovery. Stone acquired distressed homeowners’ properties in her own name or under entities she controlled, made false representations to mortgage lenders in order to induce approval of the short sales, and then re-sold the properties – often the same day or the next – to new buyers at a price above the short sale amount, in violation of agreements made with mortgage lenders.

Jose Marinay owned a settlement company that closed every short sale transaction for Stone. Marinay pleaded guilty to wire-fraud conspiracy on May 27, 2014.  At his and Stone’s direction, fraudulent HUD-1 settlement statements were prepared to facilitate the transactions, and Stone destroyed some of the incriminating documents after closings. Financial institutions suffered losses of at least $2.2 million from the scheme, while Stone profited more than $720,000 from these transactions but failed to file individual income tax returns. She also sent fictitious bonds to the IRS in an attempt to pay off her tax liability, and she sent fake international promissory notes to creditors purporting to satisfy her credit card debt as well as her mortgage loan.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Caroline D. Ciraolo, Acting Assistant Attorney General of the Justice Department’s Tax Division; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; and Thomas Jankowski, Special Agent in Charge of IRS-Criminal Investigation’s (IRS-CI) Washington, D.C. Field Office, made the announcement after sentencing by U.S. District Judge Claude M. Hilton.

This case was investigated by the FBI’s Washington Field Office and IRS–CI. Assistant U.S. Attorney Uzo Asonye and Assistant Chief Todd Ellinwood of the Justice Department’s Tax Division are prosecuting the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-127.

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ALEXANDRIA, Va. – Jonathan Ernesto Godoy, 25, of Frederick, Maryland, was indicted by a federal grand jury today on charges relating to his alleged involvement in two firebombings of the Loudoun County Department of Community Corrections (DCC) building.  The charges include arson affecting interstate commerce, conspiracy to commit arson, attempted arson, possession of an unregistered destructive device, and the use and carry of a destructive device during or in relation to a crime of violence. 

According to court documents, Godoy was serving a one year term of supervised probation through DCC.  While on probation, Godoy tested positive for continued drug use and was told that his violations could result in him being sent to prison.  In addition to submitted “dirty” urine samples, Godoy also missed scheduled drug testing and probation appointments.  In an effort to avoid violating his probation and being sent to jail, Godoy devised a plan to destroy DCC through the use of destructive devices—gasoline filled bottles with cotton wicks—commonly referred to as a “Molotov Cocktail.”  The indictment alleges that Godoy and a co-conspirator threw Molotov Cocktails at DCC in the early morning hours of Nov. 14, 2012.  The fire on that date at the DCC caused serious damage to the building, causing DCC to relocate to another location.

According to the indictment, after the first fire Godoy missed additional appointments with his probation officer in Loudoun and was told to report on Dec. 19, 2012 to provide documentation for the missed appointments.  On Dec. 19, 2012, Godoy allegedly attempted to destroy the relocated DCC by throwing a Molotov Cocktail at that location.

Godoy faces a mandatory minimum of 30 years in prison and a maximum penalty of life 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; Linda Hale, Chief Fire Marshal, Loudon County Department of Fire, Rescue, and Emergency Management; and Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement.

This case was investigated by the Loudoun County Fire Marshal’s Office and the ATF.  Assistant U.S. Attorneys Michael Rich and Zach Terwilliger are prosecuting the case, with assistance from the Loudoun County Commonwealth Attorney’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. 1:15-mj-382.

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.

NEWPORT NEWS, Va. – Eric Thomas Boettcher, 58, of Newport News, was sentenced today to 120 months in prison, followed by 20 years of supervised release for receipt of child pornography. 

Boettcher pleaded guilty on April 16, 2015. According to court documents, federal agents were able to determine that someone using a particular internet protocol address was sharing child pornography files.  That online activity was then linked to Boettcher’s residence.  Agents executed a search warrant on Boettcher’s home in Newport News, Virginia on Oct. 17, 2014. Agents seized numerous electronic devices found in the home. A forensic exam of the devices revealed over 150,000 images of child pornography, including video depicting actual and simulated sadistic or masochistic abuse by an adult male with a minor male child and oral-genital sexual intercourse by an adult male with a minor male child.

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

This case was investigated by the FBI’s Norfolk Field Office.  Assistant U.S. Attorney Lisa R. McKeel 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. 4:15-cr-8.

RICHMOND, Va. – Marcus D. Bennett, 31, of Henrico County, Virginia, pleaded guilty today to charges of robbery and brandishing a firearm in furtherance of that robbery.

According to court documents, on Jan. 9, 2015, Bennett entered a McDonald’s restaurant located in Henrico, Virginia, while armed with a revolver.  Once inside, Bennett approached the shift manager, and while brandishing the firearm, ordered the manager to open the safe and hand over the money. After getting the money, Bennett went to the cashier who was working the drive through window, and demanded money from the register. 

In entering his plea today before Magistrate Judge David J. Novak, Bennett admitted in the signed statement of facts that he had committed three additional armed robberies, to include a second McDonald’s restaurant in Henrico, and two subway restaurants, one in Henrico and the other in Richmond.  

Bennett was arrested in May 2015 after an investigation was conducted by officers and detectives with the Henrico and Richmond Police Departments in conjunction with the FBI’s Central Virginia Violent Crime Task Force.

Bennett faces a sentence of up to 20 years in prison for the robbery, and a maximum of life in prison for brandishing the firearm when he is sentenced on Nov. 13, 2015.  Bennett faces additional time in prison because he was on federal supervised release when he committed this series of robberies. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

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

This case was investigated by the FBI, members of the Henrico County Police Department, and members of the Richmond Police department.  Assistant U.S. Attorney Angela Mastandrea-Miller 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-134.                                                          

RICHMOND, Va. – Eddie Blanchard, 37, of Miami, Florida, was sentenced today to 204 months in prison, followed by three years of supervised release for his role in a stolen identity tax refund fraud scheme. Blanchard was also ordered to pay $568,625.07 in restitution.

Blanchard was found guilty by a federal jury on May 6, 2015.  According to evidence presented at trial and other hearings, Blanchard participated in a Miami-based stolen identity refund fraud scheme.  He and three confederates, Ramoth Jean, Junior Jean Merilia, and Jimmy Lord Calixte traveled repeatedly to Richmond in the early part of 2012 and used stolen personal identifying information to file hundreds of fraudulent tax returns, utilizing online tax preparation programs.  Blanchard and his accomplices claimed significant refunds on those fraudulent returns, and requested that those refunds be placed on pre-paid debit cards, which were later mailed to Richmond addresses selected by the conspirators. 

The scheme began to unravel when a Henrico County police officer encountered Jean removing a box containing stolen personal identifying information from a storage unit rented by the co-conspirators.  Following  Jean’s subsequent arrest on June 20, 2013, Blanchard convinced him to mislead federal investigators about the identity of his actual co-conspirators, going so far as to facilitate the creation of a fictional accomplice.  Jean ultimately refused to testify before a federal grand jury about this matter. 

On January 9, 2014, Jean was sentenced to 114 months in prison for his role in the fraud scheme.  He was subsequently sentenced to an additional eight months in prison on a separate contempt charge for his refusal to testify before the grand jury.  On June 19, 2015, Merilia was sentenced to a total of 133 months in prison for his role in the fraud scheme and the subsequent obstruction of justice.  Calixte is currently a fugitive. 

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Thomas Jankowski, Special Agent in Charge, Washington D.C. Field Office, IRS-Criminal Investigation (IRS-CI); and David G. Bowers, Acting Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service (USPIS), made the announcement after sentencing by U.S. District Judge Henry E. Hudson.

This case was investigated by IRS-CI and USPIS, with assistance from the Henrico County Police Department as part of the Metro-Richmond Identity Theft Task Force.  Other member agencies of the Task Force include: Bureau of Diplomatic Security, U.S. Department of State, and Chesterfield County Police Department.  Prosecutions for the Task Force are handled by the United States Attorney’s Office and the Office of the Attorney General for the Commonwealth of Virginia. Assistant U.S. Attorneys Michael C. Moore and Thomas A. Garnett 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. 3:13cr136,  3:14cr73, 3:14cr139, and 3:15cr39.

NORFOLK, Va. – Raymond Wyche, 47, of Chesapeake, Virginia, was indicted by a federal grand jury on Aug. 5, 2015, on robbery and firearms charges related to a series of robberies in Virginia Beach and Chesapeake in 2014. Specifically, Wyche faces eight counts of interference with commerce by means of robbery and two counts of using a firearm during a crime of violence.

According to the indictment, the government alleges Wyche committed the following armed robberies:

1. 7-Eleven at 6673 Indian River Road in Virginia Beach on Feb. 11, 2014;
2. Wilco-Hess gas station at 6048 Indian River Road in Virginia Beach on March 19, 2014;
3. 7-Eleven at 201 S. Witchduck Road in Virginia Beach on March 25, 2014;
4. Exxon gas station at 841 S. Military Highway in Virginia Beach on April 25, 2014;
5. BP gas station at 4900 Princess Anne Road in Virginia Beach on June 6, 2014;
6. Exxon gas station at 1102 S. Military Highway in Chesapeake on June 25, 2014;
7. 7-Eleven at 5444 Virginia Beach Boulevard in Virginia Beach on June 29, 2014;
8. Gulf gas station at 6029 Indian River Road in Virginia Beach on July 16, 2014.

Wyche faces a mandatory minimum penalty of 32 years in prison, and a maximum penalty of life 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; Mark R. Herring, Attorney General 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 Wyche was apprehended by federal agents.

This case was investigated by ATF’s Washington Field Division with assistance from the Chesapeake and Virginia Beach Police Departments.  Assistant U.S. Attorney William D. Muhr and Virginia Assistant Attorney General and Special Assistant U.S. Attorney John F. Butler 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-97.

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.

Six out of seven co-conspirators have pleaded guilty for their involvement in the organization’s distribution of between 30 and 90 kilograms of heroin

NORFOLK, Va. – Jerald Outten, 26, and Sherita Nicks, 41, both of Portsmouth, Virginia, pleaded guilty today for their involvement in a massive heroin trafficking operation.

Jerald Outten is the brother of Alonzo Outten, the head of the Outten Organization. Alonzo Outten and six of his co-conspirators were indicted by a grand jury on July 8, 2015.  In the early morning hours of July 14, 2015, search warrants were executed simultaneously on 14 properties in Portsmouth, Chesapeake, and Suffolk, Virginia, by more than 250 law enforcement officials from three states and the District of Columbia.  Less than a month later, six of the seven of the co-conspirators have pleaded guilty to conspiracy to manufacture, distribute, and possess with the intent to distribute heroin.  Jermaine Jones and Garnett Brown pleaded guilty on July 29, 2015. Alonzo Outten pleaded guilty on July 30, 2015; and Troy Gay, responsible for distributing heroin that led to five overdoses, pleaded guilty on Aug. 6, 2015. Alonzo Outten’s girlfriend, Latina Jackson, pleaded guilty to maintaining a drug premises on July 29, 2015.

According to court documents, Jerald Outten was arrested on July 14, 2015, with 135 grams of raw heroin, a .40 caliber firearm, and $1,702 in cash. 

According to court documents, Sherita Nicks exchanged a series of text messages with Alonzo Outten and her New York suppliers negotiating the purchase of heroin and cocaine. Ms. Nicks was subsequently arrested by Delaware State Police in November 2013 with over 500 grams of heroin and 168 grams of cocaine.  Nicks was a wanted fugitive for her crimes in Delaware until she turned herself in to federal authorities on July 20, 2015.

Alonzo Outten, the leader of the organization from November 2013 to July 2015, managed the manufacture and distribution of between 30 and 90 kilograms of heroin (an estimated street value between $1.5 and $4.5 million dollars).  The Outten Organization supplied kilogram amounts of heroin to at least two Bloods gang sets: the Imperial Gangsta Bloods led by “godfather” Chris Smith a/k/a “Killa” who pled guilty July 28, and the Gorilla Mafia Piru gang led by “godfather” Theodore Vann a/k/a “Flatline” who pled on June 25, 2015.

Jerald Outten faces a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison when he is sentenced on November 17, 2015. Sherita Nicks, who is originally from Brooklyn, New York, faces a mandatory minimum sentence of 5 years in prison and a maximum sentence of 40 years in prison when she is sentenced on November 17, 2015.

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 pleas were accepted by U.S. District Judge Mark S. Davis.

This case was investigated by the FBI’s Norfolk Field Office and the Chesapeake Police Department with the assistance of the Portsmouth Police Department, the Virginia State Police, and the Naval Criminal Investigative Service.  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 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-80(Outten, et. al.); 2:15-cr-93(Jackson); 2:15cr7(Smith); and 2:15cr60(Vann). 

 Led Attack on U.S. and Afghan Forces in Afghanistan in 2009

Irek Ilgiz Hamidullin, 55, a Russian national and former Russian army tank commander, was convicted today by a federal jury of conspiring to provide material support to terrorists, conspiring to shoot down American helicopters and to kill U.S. and Afghan soldiers, conspiring to use a weapon of mass destruction and several other charges related to an attack he led on U.S. and Afghan forces in Afghanistan in November 2009.

Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Assistant Director in Charge Andrew G. McCabe of the FBI’s Washington, D.C., Field Office made the announcement.

“Irek Hamidullin was convicted of numerous terrorism offenses in connection with orchestrating and conducting a violent attack on Afghan and U.S. forces in Afghanistan in 2009, including conspiring to kill members of the U.S. military,” said Assistant Attorney General Carlin.  “Hamidullin was captured and detained by the U.S. military in Afghanistan and brought to the United States for trial.  This case once again demonstrates our resolve to find and bring to justice, using all available tools, those who target U.S. citizens and interests around the world.”

“This case is an example of our criminal justice system functioning exactly the way it was designed,” said U.S. Attorney Boente. “I want to commend our trial team for their hard work in this case, bringing it from indictment to conviction in 10 months. I would also like to thank our partners at the FBI’s Washington Field Office for their efforts on this case.”

“Hamidullin’s conviction today should serve as a reminder to terrorists around the globe that the FBI is committed to finding justice for Americans who are attacked both overseas and at home,” said FBI Assistant Director in Charge McCabe.  “Along with our partners at the U.S. Attorney’s Office, we will aggressively bring to justice those who seek to kill U.S. troops and who provide material support to terrorist organizations.”

Hamidullin was indicted by a federal grand jury in October 2014, followed by a superseding indictment on April 23, 2015.  The guilty verdict was accepted by U.S. District Judge Henry E. Hudson of the Eastern District of Virginia.

According to court records and evidence at trial, Hamidullin was a former Russian army tank commander who had contact with high level Taliban and Haqqani Network personnel.  On Nov. 28, 2009, Hamidullin led a group of fighters in an attack on U.S. and Afghan forces at Camp Leyza, located in the Khost Province of Afghanistan, near the border of Pakistan.  He had planned the attack for months, received approval from the Taliban and Haqqani Network, recruited other fighters and acquired weapons for the attack, including IED’s, heavy machine guns and a shoulder-fired rocket, with the intent of shooting down U.S. helicopters responding to the attack.

According to evidence presented at trial, on the night of Nov. 28, 2009, Hamidullin and his fighters initiated their attack, beginning with firing into Camp Leyza.  Soon after the attack began, two U.S. Army helicopters responded to Camp Leyza, just as Hamidullin knew from his months of planning and reconnaissance.  He positioned himself on a nearby hill, away from his fighters, where he had a clear view of the battlefield and could radio orders to his fighters.  As the helicopters approached, he ordered his fighters to fire the anti-aircraft weapons he had strategically placed in the area.  Both weapons malfunctioned and the helicopters were not fired upon.  He then ordered his fighters to pack up their weapons and other gear and return to Pakistan.  During their retreat, U.S. forces ultimately identified and eliminated approximately 20 of Hamidullin’s fighters.

The next morning, as U.S. and Afghan forces were conducting a battle damage assessment, Hamidullin was found hiding on the battlefield.  After a brief firefight with U.S. Army soldiers, the two insurgents were killed and Hamidullin was wounded and captured. 

Hamidullin faces a maximum penalty of life in prison when he is sentenced on Nov. 6, 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.

This case was investigated by the FBI’s Washington, D.C., Field Office.  The case is being prosecuted by Assistant U.S. Attorneys Michael Gill and James P. Gillis of the Eastern District of Virginia and Trial Attorney Jennifer E. Levy of the National Security Division’s Counterterrorism Section.

Hamidullin Evidence (Photograph of Surrender)

Hamidullin Evidence (Photograph of Weapons)

A former National Geospatial-Intelligence Agency (NGA) official pleaded guilty to making false statements to federal investigators regarding his financial interest in a private company.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Assistant Inspector General for Investigations Patricia C. Langford of NGA and Acting Special Agent in Charge Paul Sternal of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office made the announcement.

Brian P. Hearing, 43, of Falls Church, Virginia, pleaded guilty before U.S. District Judge T. S. Ellis III of the Eastern District of Virginia to an information charging him with making material false statements to federal investigators.

According to the statement of facts filed along with his plea agreement, Hearing worked at NGA from 2011 to 2015 in its Innovision Directorate, an applied science and technology research group.  Hearing admitted that, during this time, he also co-founded a private company for the purpose of developing and commercializing a certain type of automated detection system.  Hearing also admitted that he inappropriately used his position with the NGA to promote the company.

In connection with his guilty plea, Hearing also admitted that, when questioned by federal agents about his involvement with the company, he lied to conceal his conflict of interest.  Among other things, Hearing admitted to falsely claiming that another individual was the only founder of the company and to denying having any legal or financial connections to the company when, in fact, he co-founded the company and shared equal ownership of it. 

This case was investigated by the NGA-OIG and the DCIS.  The case is being prosecuted by Trial Attorney Heidi Boutros Gesch of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Paul J. Nathanson of the Eastern District of Virginia.

Hearing Plea Agreement

ALEXANDRIA, Va. – Brien Keith Hughes, 32, formerly of Alexandria, was sentenced today to 360 months in prison, followed by five years of supervised release for convictions related to his role in two violent robberies where firearms were used.

Hughes pleaded guilty on March 4, 2015. According to court documents and statements made in court, Hughes, who previously served as a leader of the Nine Trey Gangster Bloods clique of the United Blood Nation transnational street gang, was involved in two violent robberies on May 13, 2013. In both instances, Hughes, along with other co-conspirators, targeted a low-level marijuana dealer and engaged in what is referred to as a “drug rip,” where after setting up a drug transaction, the purchaser robs the drug dealer of their narcotics and any other valuables.  In this case, Hughes and other Bloods members executed an armed robbery of the victim and stole his narcotics, identification, vehicle, and keys.

After waiting for a period of time, Hughes and his co-conspirators, using the information found on the victim’s stolen identification, traveled to the home where the victim was residing.  In addition to the victim, two other individuals, innocent bystanders who merely rented a room to the victim, were also present when the defendant and his fellow gang members made entry into the home. 

The defendant and his co-conspirators, armed with handguns and zip-ties, forced entry into the home and quickly assaulted the three sleeping occupants and restrained the victims using zip-ties. Once the victims were tied up and partially blindfolded, some gang members ransacked the house looking for drugs, valuables, and weapons, while the other gang members, including the defendant, interrogated the three victims regarding the location of additional marijuana.  This interrogation was particularly heinous as it involved physical and sexual assault.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew G. McCabe, 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.

This case was investigated by the Fairfax County Police Department’s Gang Unit and the FBI’s Washington Field Office, with assistance from the Spotsylvania County Sheriff’s Department and City of Fredericksburg Police Department.  Assistant U.S. Attorney Zachary Terwilliger and former Special Assistant U.S. Attorney Catherine Ahn prosecuted the case. A special thanks to our prosecutorial partners at the Spotsylvania County Commonwealth Attorney’s Office for their assistance. 

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-70.

ALEXANDRIA, Va. – Brian P. Hearing, 43, of Falls Church, Virginia, a former official with the National Geospatial-Intelligence Agency (NGA), pleaded guilty today to lying to federal investigators to conceal his ownership of a private company he was inappropriately using his official position to promote.

According to the statement of facts filed along with his plea agreement, Hearing worked at NGA from 2011 to 2015 in its Innovision Directorate, an applied science and technology research group.  Hearing admitted that, during this time, he also co-founded a private company for the purpose of developing and commercializing a certain type of automated detection system.  Hearing also admitted that he inappropriately used his position with the NGA to promote the company. 

In connection with his guilty plea, Hearing also admitted that, when questioned by federal agents about his involvement with the company, he lied to conceal his conflict of interest.  Among other things, Hearing admitted to falsely claiming that another individual was the only founder of the company and to denying having any legal or financial connections to the company when, in fact, he co-founded the company and shared equal ownership of it. 

Hearing faces a maximum penalty of five years in prison when sentenced on Nov. 13, 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; Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division; Patricia C. Langford, Assistant Inspector General of NGA; and Paul Sternal, Acting Special Agent in Charge for the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office, made the announcement after the plea was accepted by U.S. District Judge T.S. Ellis, III.

This case was investigated by the NGA Office of Inspector General and DCIS.  Assistant U.S. Attorney Paul J. Nathanson of the Eastern District of Virginia, and Trial Attorney Heidi Boutros Gesch of the Criminal Division’s Public Integrity Section 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-214.

Three tax return preparers were indicted today by a federal grand jury in Richmond, Virginia, on charges of conspiracy to defraud the United States and aiding and assisting in the preparation of false federal income tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Dana J. Boente of the Eastern District of Virginia.

According to the allegations in the indictment, from around December 2011 to spring 2012, Erik Pittman, 35, Jeremy Blanchard, 35, and Corey Taylor, 25, operated three locations of a tax return preparation business known as Mo Money Taxes.  The indictment alleges that the three men, along with others, created and inflated fictitious and fraudulent tax credits, including the Earned Income Credit and the American Opportunity Credit, to claim tax refunds that customers were not entitled to receive.  All three defendants are charged with conspiracy to defraud the United States.  Pittman is charged with six counts of assisting in the preparation of false federal income tax returns, Blanchard is charged with eight counts of assisting in the preparation of false federal income tax returns and Taylor is charged with five counts assisting in the preparation of false federal income tax returns.

If convicted, each defendant faces a statutory maximum sentence of five years in prison and a fine of $250,000 for the conspiracy count and a statutory maximum sentence of three years in prison and a $250,000 fine for each count of preparing false tax returns.

Acting Assistant Attorney General Ciraolo and U.S. Attorney Boente commended the special agents of IRS–Criminal Investigation, the FBI and the U.S. Postal Inspection Service, who investigated the case, as well as Assistant U.S. Attorney Stephen W. Miller of the Eastern District of Virginia and Trial Attorneys Todd P. Kostyshak and Kevin F. Sweeney of the Tax Division, who are prosecuting the case.

An indictment merely alleges that a crime has been committed, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt.

RICHMOND, Va. – Erik Pittman and Jeremy Blanchard, both 35 and from Memphis, Tennessee, and Corey Taylor, 25, of Richmond, were indicted by a federal grand jury today on charges of conspiracy to defraud the United States and aiding in the preparation of 19 false and fraudulent U.S. individual tax returns.

According to the indictment, Pittman, Blanchard and Taylor held themselves out as tax preparers for tax year 2011, operating three locations of a business known as Mo’ Money Taxes.  The indictment alleges that the three men, along with others, created and inflated fictitious and fraudulent tax credits, including the Earned Income Credit and the American Opportunity credit, to claim tax refunds that customers were not entitled to receive.

If convicted, Pittman faces a maximum penalty of 23 years in prison; Blanchard 29 years; and Taylor 20 years.  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; Caroline Ciraolo, Acting Assistant Attorney General for the Department of Justice Tax Division; Thomas Jankowski, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); Adam S. Lee, Special Agent in Charge of the FBI’S Richmond Field Office; and David G. Bowers, Acting Inspector in Charge of the U.S. Postal Inspection Service (USPIS), made the announcement after the indictment was returned by the grand jury.

This case was investigated by IRS-CI, the FBI’s Richmond Field Office, and the USPIS. Assistant U.S. Attorney Stephen W. Miller, and Department of Justice Attorneys Todd Kostyshak and Kevin Sweeney 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-196.

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.

ALEXANDRIA, Va. – Kristen Michelle Ayala, aka “Amber Lynch,” aka “Olivia Benet,” aka “Grace Williams,” 30, and Joshua Manuel Sanchez, aka “Nelson Cruz,” aka “Chris Ward,” “Daniel Mora,” 34, both formerly of Las Vegas, have pleaded guilty to conspiracy to commit wire fraud for their role in a $3.8 million dollar mortgage modification scam. 

In a statement of facts filed with the plea agreement, from in and around October 2012 through September 2014, Ayala, Sanchez, and others, executed a scheme to defraud vulnerable victim homeowners who were at risk of foreclosure.  Ayala and Sanchez developed fraudulent documents, telephone scripts, and aliases in an effort to defraud the victim homeowners.  Their scheme lulled victim homeowners into believing that the defendants were part of the legitimate U.S. Government “Home Affordable Modification Program” (“HAMP”).  During the execution of the ruse, the Ayala and Sanchez used documents containing fraudulent government seals, made statements regarding modification of the victims’ mortgages through the HAMP program, and the victims’ mortgage payments to their own accounts rather than to the victims’ lenders.  To date, the scheme defrauded more than 400 victims, caused losses of over $3.8 million dollars, and resulted in many victims losing their homes, despite the victims’ efforts to modify their mortgages and continue to make payments on their loans.  

Ayala and Sanchez were indicted by a federal grand jury on May 1, 2015. Each faces a maximum penalty of 20 years in prison when sentenced on Oct. 29, 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 Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP), made the announcement after the plea was accepted by U.S. District Judge James C. Cacheris.

This case was investigated by SIGTARP. Assistant U.S. Attorneys Zach Terwilliger and James P. Gillis are prosecuting the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-147.

NORFOLK, Va. – Jonathon Giddens, 24, of Virginia Beach, Virginia, was sentenced yesterday to 360 months in prison, followed by lifetime of supervised release for production of child pornography.  The court directed that this sentence was to run consecutively to the sentence imposed on Giddens in a related case in the City of Virginia Beach. 

Giddens pleaded guilty on April 20, 2015.  According to court documents, Giddens produced child pornography by tricking adolescent boys into masturbating on camera.  Giddens developed numerous female alter egos, to whom he gave life by creating email addresses and accounts on dozens of social media sites.  While posing as one of these girls, Giddens would then strike up online relationships with teenaged boys – both by email and chat services – and send them photographs or videos of a teenage girl exposing herself or masturbating.  In exchange for these images, Giddens would convince these boys to take pictures or videos of themselves masturbating and email them to Giddens.  Additionally, posing as one of his female aliases, he requested that the minors perform those acts on webcam which Giddens would then record.  Giddens did not produce this pornography for its own end, but rather to use to trade with other pedophiles.  In this way, Giddens amassed a collection of 6,000 images and 1,500 videos of child pornography, including a significant number of depictions of infants and toddlers being sexually abused, as well as sadomasochistic conduct, and bestiality.  He also communicated with other persons about his method of successfully tricking these boys, and encouraged them to do the same. 

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., made the announcement after sentencing by U.S. District Judge Mark S. Davis.

This case was investigated by HSI.  Assistant U.S. Attorneys V. Kathleen Dougherty and Joseph L. Kosky prosecuted the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-117.

ALEXANDRIA, Va. – Jonathan Ernesto Godoy, 25, of Frederick, Maryland, made his initial appearance in federal court today on charges of using a destructive device during or in relation to the arson of the Loudoun County Department of Community Corrections building.

According to court documents and court proceedings, in the fall of 2012 Godoy was on supervised probation in Loudoun County stemming from possession of narcotics charges. In danger of violating his conditions of probation due to missed appointments, adulterated urine samples, and positive drug tests, Godoy, along with a co-conspirator, allegedly made two destructive devices using glass bottles, gasoline, and scraps of cotton t-shirt, commonly known as “Molotov cocktails,”  and attempted to throw the devices into Godoy’s probation officer’s window. 

According to court documents, at least one of the devices exploded inside of the Loudoun County Department of Corrections building and caused severe fire damage.  The fire, which occurred during the early morning hours of Nov. 14, 2012, caused such destruction that the occupants of the Corrections building had to move to an alternate location. 

Godoy faces a mandatory minimum of 30 years in prison and a maximum penalty of life 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; Linda Hale, Chief Fire Marshal, Loudon County Department of Fire, Rescue, and Emergency Management; 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 Godoy’s initial appearance before U.S. District Magistrate Judge Theresa Buchanan.

This case was investigated by the Loudoun County Fire Marshal’s Office and the ATF.  Assistant U.S. Attorneys Michael Rich and Zach Terwilliger are prosecuting the case, with assistance from the Loudoun County Commonwealth Attorney’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. 1:15-mj-382.

NORFOLK, Va. – Alonzo Outten, 35, and Jermaine Jones, 38, of Portsmouth; Garnett Brown, 34, of Chesapeake; and Latina Jackson, 27, of Suffolk, Virginia, pleaded guilty this week for their involvement in a massive heroin trafficking operation.  Outten faces a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison when he is sentenced on November 2, 2015.

Alonzo Outten, the head of the Outten organization, and six of his co-conspirators were indicted by a grand jury on July 8, 2015.  In the early morning hours of July 14, 2015, search warrants were executed simultaneously on 14 properties in Portsmouth, Chesapeake and Suffolk by more than 250 law enforcement officials from three states and the District of Columbia.  Nearly two weeks later, Outten and several of his co-conspirators pleaded guilty for conspiracy to manufacture, distribute, and possess with intent to distribute in excess of one kilogram of heroin.

According to the statement of facts in Outten’s case, he was the leader of an organization from November 2013 to July 2015 that managed the manufacture and distribution of between 30 and 90 kilograms of heroin (an estimated street value between $1.5 and $4.5 million dollars).  Outten managed six mid-level drug operatives, who in turn managed approximately a dozen other individuals that either directly assisted or facilitated the trafficking and distribution of heroin.

Alonzo Outten supplied kilogram amounts of heroin to at least two Bloods gang sets: the Imperial Gangsta Bloods led by “godfather” Chris Smith a/k/a “Killa,” who pleaded guilty Tuesday, and the Gorilla Mafia Piru gang led by “godfather” Theodore Vann a/k/a “Flatline,” who pleaded guilty on June 25, 2015.

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 pleas were accepted by U.S. District Judge Mark S. Davis.

This case was investigated by the FBI’s Norfolk Field Office and the Chesapeake Police Department with the assistance of the Portsmouth Police Department, the Virginia State Police, and the Naval Criminal Investigative Service.  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 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-80 (Outten, et. al.); 2:15-cr-93 (Jackson); 2:15-cr-7 (Smith); and 2:15-cr-60 (Vann).

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NORFOLK, Va. – Ronald Chisholm, 53, of Norfolk, was convicted today by a federal jury on charges of conspiracy, mail fraud, and aggravated identity theft in connection with a scheme to defraud the IRS.

Chisholm originally pleaded guilty on Oct. 6, 2014, and later withdrew his plea.  According to court records and evidence presented at trial, Chisholm’s scheme was discovered in 2013 after a local check cashing business noticed one of its employees had cashed over $2 million in U.S. Treasury checks.  The employee of the check cashing business identified Ronald Chisholm as the person who paid her $200 per check to cash the treasury checks in violation of the company’s policies.  A subsequent IRS investigation determined that Chisholm, along with unidentified co-conspirators, stole the personal identifying information of numerous people and filed at least 810 fraudulent income tax returns.  As a result of these false returns, Chisholm and his co-conspirators received a total of $2.6 million in fraudulent income tax refunds.

Chisholm faces a maximum penalty of 128 years in prison when sentenced on Nov. 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; and Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation, made the announcement after the verdicts were accepted by Senior U.S. District Judge Robert G. Doumar. Assistant U.S. Attorney Joseph L. Kosky is prosecuting the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-132.

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NORFOLK, Va. – The “Godfather” of the Portsmouth-based Imperial Gangsta Bloods, a set affiliated with the United Blood Nation, pleaded guilty today to conspiring to manufacture, distribute, and possess with intent to distribute over one kilogram of heroin.

Christopher Smith, aka Killa, 32, of Portsmouth, Virginia, also pleaded guilty to possessing a firearm in furtherance of a drug trafficking crime.  Over the course of the conspiracy, Smith and the Imperial Gangsta Bloods trafficked multiple kilograms of heroin in the Hampton Roads region, and numerous guns were seized during the investigation of the case.

In a statement of facts filed with the plea agreement, from early 2014 until September 2014, Smith and others working at his direction traveled to New York City, where they bought bulk quantities of heroin from Imperial Gangsta Bloods member Ricky Jackson, aka Sosa.  The heroin was transported from New York City back to the Hampton Roads area where it was cut and prepared for street-level distribution by other members of the gang, including high-ranking members Junious Whitaker, aka Redd, and Howard Foust, aka Lil’ Howard.  (Case details on Jackson, Whitaker, Foust and Stigger are in the table presented below).

In August 2014, Smith and other members of the gang were involved a series of violent altercations with twin brothers Jason and Jeremy Saunders, who ran a separate heroin trafficking organization in Portsmouth.  On August 18, 2014, a member of the Imperial Gangsta Bloods gang shot Jeremy Saunders multiple times.  Saunders survived the shooting.  Days later, Smith, Whitaker and another gang member were involved in a separate shooting incident with the Saunders brothers (both of whom were later convicted in a separate federal drug prosecution).  Several weeks after the second August shooting, Smith, Foust and two other individuals were stopped on the Eastern Shore of Virginia on their way back from New York City, where they had purchased approximately 275 grams of heroin.

Smith was indicted by a federal grand jury on April 22, 2015. He faces a maximum penalty of life in prison and a mandatory minimum of 25 years in prison when he is sentenced on October 30, 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.

Name

Age, Hometown

Charges

Status

Christopher Smith

32, Portsmouth

Conspiring to distribute narcotics; possession of firearms in furtherance of a drug trafficking crime

Pleaded guilty July 28. Sentencing October 30, 2015.

Ricky Jackson

37, Hempstead, New York

Conspiracy to distribute narcotics

Pleaded guilty May 28, 2015. Sentencing Oct. 23, 2015.

Junious Whitaker

28, Portsmouth

Conspiracy to distribute narcotics; possession of firearms in furtherance of a drug trafficking crime

Pleaded guilty March 18, 2015. Sentenced June 23, 2015 to 25 years in prison.

Howard Foust

31, Portsmouth

Conspiracy to distribute narcotics

Pleaded guilty Feb. 2, 2015. Sentencing Oct. 23, 2015.

Jermarrieo Stigger

30, Virginia Beach, Virginia

Conspiracy to distribute narcotics; possession of firearms in furtherance of a drug trafficking crime

Pleaded guilty on June 15. Sentencing Sept. 22, 2015.

 

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the guilty plea was accepted by U.S. Magistrate Judge Douglas Miller.

This case was investigated by the FBI’s Norfolk field office in conjunction with the ATF, the Portsmouth, Virginia Beach, and Norfolk Police Departments, and the Virginia State Police. This investigation was 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.

Assistant U.S. Attorneys Andrew Bosse and Joseph DePadilla 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. 2:15cr7.

 

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NORFOLK, Va. – Raynard R. Heckstall, 26, of Norfolk, pleaded guilty today to theft of mail matter by a postal employee.

In a statement of facts filed with the plea agreement, Heckstall was employed by the U.S. Postal Service as a rural carrier assistant at the Princess Anne Station in Virginia Beach, Virginia.  He began his employment on April 5, 2014.  Between December 2014 and April 2015, the defendant stole mail intended to be delivered by him to customers on his assigned route. Items stolen included gift and greeting cards, cash and other items of personal property.  As a result of complaints of missing and opened mail by customers on his route, the Postal Service initiated an investigation.  Video surveillance set up by the Postal Service showed the defendant rifling through and opening mail in his postal vehicle while on his route.  In addition, video surveillance footage taken at a department store showed the defendant and a friend redeeming a number of the gift cards he had stolen.  In a voluntary interview on April 14, 2015, Heckstall admitted to law enforcement agents that he had stolen mail intended for delivery.  He estimated that since January 2015 he had stolen as many as 10 greeting cards, three times per week.  He also admitted to stealing $400 to $500 in cash.  After the interview, Heckstall voluntarily turned over to agents a plastic bag containing 25 additional gift cards that he had stolen from the mail.  These cards had a total value of over $1,000.

Heckstall was indicted by a federal grand jury on May 20, 2015.  He faces a maximum penalty of five years in prison when he is sentenced on October 29, 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 Paul L. Bowman, Special Agent in Charge of the U.S. Postal Service Office of Inspector General made the announcement after the plea was accepted by U.S. Magistrate Judge Lawrence R. Leonard.

This case was investigated by the Office of Inspector General of the U.S. Postal Service. Assistant U.S. Attorney Alan M. Salsbury 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-65.

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Arlington man was in custody on bank robbery charges when he escaped 

ALEXANDRIA, Va. – Wossen Assaye, 43, of Arlington, Virginia, pleaded guilty today to 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.

In the statement of facts filed with the plea agreement, 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.

Assaye was indicted by a federal grand jury on May 28, 2015. He faces a mandatory minimum of 32 years in prison and a maximum penalty of life in prison when he is sentenced on Oct. 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; Andrew G. McCabe, 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 the indictment was returned.

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 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-115.

Involved multiple investors and up to $1 million in investor deposits

ALEXANDRIA, Va. – On the third day of trial, after prosecutors had presented 10 witnesses and entered over 200 exhibits into evidence, Philip Barnard, Jr., 54, of McLean, Virginia, pleaded guilty yesterday to 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.

In a statement of facts filed with the plea agreement, 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. 

Barnard was indicted by a federal grand jury on Feb. 26, 2015. He faces a maximum penalty of 20 years in prison on the wire fraud count, and a maximum penalty of 10 years in prison on each money laundering count. Barnard is scheduled to be sentenced on Oct. 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; Andrew G. McCabe, 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 the plea was accepted by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorneys Uzo Asonye and Christopher Catizone 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-60.

ALEXANDRIA, Va. – Jason Gregory Colley, 36, of Luray, Virginia, pleaded guilty today to tampering with evidence for moving the body of a drug overdose victim.

In a statement of facts filed with the plea agreement, on or about Sept. 12, 2014, Colley sold cocaine to Jason Laytham, 37, of Leesburg, Virginia, and another individual at an extended stay hotel in Ashburn, Virginia. 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.

Colley was charged via criminal complaint on April 2, 2015. He faces a maximum penalty of 20 years in prison when he is sentenced on Oct. 16, 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; 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 the plea was accepted by U.S. District Judge Leonie M. Brinkema.

This case was investigated by the Loudon County Sheriff’s Office and the DEA’s Washington Field Division. Assistant U.S. Attorneys Michael P. Ben’Ary and Tobias D. Tobler 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-203.

ALEXANDRIA, Va. – In an eighteen-count indictment unsealed today, six men were charged by a federal grand jury with aggravated identity theft, fraud, money laundering, and conspiracy.

The men charged in the indictment are: Ray Ekobena, 27, of Alexandria; Stefan Ekobena, 24, and Gani Cole, 27, both of Atlanta, Georgia; Rodney Hardy, 25, of Hyattsville, Maryland; Deallto Davis, 20, and Jerome Johnson, 32, both of Washington, D.C.

According to the indictment, since at least 2009, Ray Ekobena led a conspiracy involving his five co-defendants and others, the goal of which was to defraud financial institutions through the deposit of fraudulent and stolen checks.  The conspirators would recruit other individuals via social media websites (such as Instagram) to provide debit cards and personal information in exchange for a cash payment.  The conspirators would then deposit fraudulent checks into the accounts of the debit cardholders and withdraw the money before the banks discovered the fraud.  The conspirators also stole real checks, including two checks totaling $223,570.00 that were intended for the Children’s National Medical Center in Washington, D.C.

The indictment further alleges that Ray Ekobena stole social security numbers and other personal identifying information and used them to further his fraudulent schemes.  For example, Ekobena used some of the stolen social security numbers to obtain identification from the District of Columbia bearing a photo of Ekobena, but a victim’s name and date of birth.  Ekobena also used stolen personal information to obtain financing to buy or lease several vehicles, including a Mercedes.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; David M. McGinnis, Acting Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service (USPIS); Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; and Colonel Edwin C. Roessler Jr., Chief of the Fairfax County Police Department, made the announcement after the indictment was unsealed.

This case is being investigated by the USPIS, the FBI’s Washington Field Office, and the Fairfax County Police Department.  Assistant U.S. Attorney Kellen S. Dwyer and Special Assistant U.S. Attorney Joseph V. Longobardo 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-180.

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. – Brenda Ann Blair, 37, of Bonita Springs, Florida, formerly of Goochland County, Virginia, was sentenced today to 27 months in prison, followed by five years of supervised release for participating in a fraud scheme that obtained approximately $2.4 million worth of mortgage backed loans from federally backed financial institutions.

Blair was charged in a criminal information on Dec. 4, 2014, and pled guilty on Dec. 19, 2014.  In a statement of facts filed with the plea agreement, Blair admitted that she and others devised and participated in a scheme from 2006 to 2008 to fraudulently obtain $2.42 million worth of mortgage backed loans from Washington Mutual Bank, SunTrust Bank, Fannie Mae and Freddie Mac.  The mortgage loans were obtained in approximately 16 different real estate transactions, and produced actual losses in the approximate amount of $916,700.  This scheme also defrauded HUD, which lost an additional $63,964, for a total loss of $980,664.

The essence of the scheme was to mislead the lender about the true creditworthiness of the borrowers and the true value of the properties securing the loan.  For example, the schemers made various misrepresentations on the loan applications about such topics as the employment status, income, assets and debts of the buyers.  Other times the schemers would falsify information to make it appear that the buyer had made a down payment when in fact he or she had not.

 

In another aspect of the scheme, some borrowers purchased more than one property in a short period of time, resulting in some mortgage loan liabilities not appearing on the borrowers’ credit reports and the mortgage loan applications.  Even though Blair was the loan officer for all of the transactions, she failed to report to the lenders that the borrowers had obtained other outstanding mortgage loans which affected their debt-to-income ratios, and would have affected the lenders’ decision to approve the loans.

 

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Cary Rubenstein, Special Agent in Charge, Mid-Atlantic Region of the Office of Inspector General of HUD; David M. McGinnis, Inspector in Charge of the Washington Division of the United States Postal Inspection Service (USPIS); and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after the sentencing by U.S. District Judge James R. Spencer.

 

This case was investigated by the Office of the Inspector General of HUD, USPIS, and the FBI. Assistant U.S. Attorney David T. Maguire prosecuted the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14-cr-172.

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RICHMOND, Va. – Noland Anthony Harper, 61, of Henrico County, Virginia, pleaded guilty today to charges of engaging in a child exploitation enterprise.

According to court documents, Harper conspired with three other adult males to sexually abuse three juvenile victims, photograph the abuse, and then distribute the photos to other individuals over the Internet.  In 2014, Harper traveled from Richmond to Desert Hot Springs, California on three separate occasions where he rendezvoused with the coconspirators who were residents of California and Arizona.  While there, Harper and the others met up with the three minor boys, all of whom were under 16-years-old, including two who were 11-years-old, and sexually abused them, which included engaging in various sexual acts.  During these trips, Harper took the boys to the beach, Disneyland, and the house of a coconspirator in Arizona, where he bought various gifts for the victims to induce them to pose for sexually explicit photographs.  Harper would subsequently upload the sexually explicit images to a website from his Henrico residence and distribute them to willing recipients.  Law enforcement initially detected Harper after one of the enterprise participants was arrested in California on outstanding warrants for child exploitation offenses.  Evidence recovered from that arrest revealed that the arrestee was in possession of credit cards in Harper’s name, that he was in constant contact with Harper’s cell phone number, and that $10,000 had recently flowed through a bank account in both Harper’s and the arrestee’s name.

Harper was indicted by a federal grand jury on March 4, 2015.  Harper faces a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison when he is sentenced on October 9, 2015.  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.  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 Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after the plea was accepted by U.S. Magistrate Judge Roderick C. Young.

This 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, 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-36.

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RICHMOND, Va. – Spencer A. Coley, Jr., 25, of Richmond, was sentenced today to 324 months in prison, followed by three years of supervised release for the Dec. 9, 2014, armed robbery at the College Mart convenience store in Richmond and the Dec. 11, 2014, armed robbery of an employee of the Red House Chinese Restaurant outside a SunTrust Bank, also in Richmond.  Coley was also sentenced to 24 months in prison to run concurrently with the above-referenced sentence for committing multiple violations while on federal supervised release.

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 Robert E. Payne.

Coley plead guilty on April 9, 2015, to two counts of interference with commerce by robbery, and one count of brandishing a firearm in furtherance of a crime of violence. According to court documents, Coley admitted that on Dec. 9, 2014, he entered the College Mart convenience store, located at 1501 Chamberlayne Parkway, and brandished a firearm at the clerk and demanded money.  After obtaining $400 in cash he fled.  Coley also admitted that on Dec. 11, 2014, he entered the SunTrust bank, located at 1101 Azalea Avenue, and observed an employee of the Red House Chinese Restaurant making a withdrawal from the restaurant business account.  Coley waited outside for the employee to leave the bank and robbed him at gunpoint of $4,160.  Both businesses were involved in interstate commerce.  

This case was investigated by the FBI’s Richmond Field Office and the Richmond Police Department.  Assistant U.S. Attorney Erik S. Siebert 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-18.

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ALEXANDRIA, Va. – Three owners and the CEO of a government contracting company headquartered in Falls Church, Virginia – all of whom are retired Army National Guard colonels – were indicted today for their alleged participation in a scheme to bribe an active-duty Army National Guard colonel in order to obtain millions of dollars of Army National Guard marketing, retention and recruitment contracts.

“These criminal charges reflect our continued commitment to rooting out public corruption wherever it occurs,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “The public contracting process should be one of integrity and fairness, and these cases should send a strong message that public corruption will be vigorously prosecuted in the military as well as other areas of government.”

“As alleged in the indictment, four retired colonels have been charged with using their corporate marketing firm to funnel bribe payments to high-ranking accomplices in the Army National Guard to corruptly obtain lucrative marketing contracts,” said Leslie Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division.  “This case is emblematic of the Criminal Division’s ongoing efforts to root out corruption wherever it may be found, including at the highest ranks of our armed services.”

“The FBI’s top criminal priority is investigating and stopping corrupt officials and the organizations they do business with,” said Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office.  “These indictments outline a significant bribery scheme that undermined a fair government contracting process.”

“The actions of the defendants have brought them dishonor and erode confidence in the integrity of a contracting process intended to support their fellow citizen soldiers,” said Paul Sternal, Acting Special Agent in Charge of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office.  “The Defense Criminal Investigative Service, alongside its law enforcement partners and the U.S. Attorney's Office, remain vigilant and committed to bringing individuals who subvert the acquisition system to justice.”

“Today's indictment illustrates our commitment and cooperation shared between law enforcement agencies investigating this type of corruption and bribery,” said Frank Robey, Director of the U.S. Army Criminal Investigative Command’s Major Procurement Fraud Unit (Army-CID).  “It is unconscionable how these former military officers betrayed the offices they once held for monetary gain.”

Edwin Stuart Livingston III, 67, of The Villages, Florida; Ronald Joseph Tipa, 68, of Sunny Isles Beach, Florida; Thomas Edward Taylor, 66, of Alexandria; and Ross Bernard DeBlois Sr., 55, of Fairfax Station, Virginia, were indicted by a federal grand jury today with one count of conspiracy to commit bribery, one count of bribery of a public official, one count of conspiracy to commit honest services fraud, and five counts of honest services fraud. Livingston, Tipa and Taylor are owners of a Military Personnel Services Corporation (MPSC).  DeBlois is the company’s chief executive officer.

The National Guard Bureau (NGB) is a joint activity of the U.S. Department of Defense (DOD), the state units of the Army National Guard and the Departments of the Army and Air Force.  The NGB, whose offices are located in Arlington, Virginia, oversees the distribution of federal funding provided to the Army National Guard and its state units.

The DOD provides millions of dollars of federal funds to the Army National Guard for, among other things, advertising, marketing and sponsorships in order to recruit new members.  The NGB then uses these funds to promote the Army National Guard on a national level by entering into marketing contracts.

The indictment charges that Livingston, Tipa, Taylor and DeBlois corrupted the NGB’s contracting process by providing an Army National Guard colonel, Robert Porter, 51, of Columbia, Maryland, with 1 percent of the gross contract amount for all contracts he steered to MPSC.

According to the indictment, Livingston, Tipa and Taylor – along with John Jones, 77, of Stafford, Virginia – were each a 25 percent owner of MPSC and constituted MPSC’s board of directors.  The indictment charges that in 2010 or 2011, Livingston and Tipa offered to pay Porter – a then active-duty Colonel in the Army National Guard who held a high level position at the NGB – 1 percent of the gross contract amount of any contracts that he steered to MPSC while he remained in uniform.  As part of this alleged corrupt agreement, the 1 percent bribe payment would be paid to Porter only after he retired from the NGB and began working for MPSC, and the payment would be concealed as an “incentive fee” or “bonus” payment in MPSC payroll records.

The indictment charges that throughout 2011 and 2012, in his role as the director of NGB’s Guard Strength Directorate, Porter steered at least three NGB marketing contracts to MPSC, known as the Michael Jordan American Motorcycle Association Motorsports Program, the Trademark Licensing Agency Program contract and the Guard Strength Directorate’s Strength Readiness Support Center Services.  These contracts were worth approximately $5.5 million in total, according to the indictment.

MPSC paid Porter his 1 percent bribe payment in three checks:  $10,326.50 on July 23, 2015, $10,326.50 on Aug. 19, 2014, and $10,899 on Sept. 10, 2014, according to the indictment.

Porter pleaded guilty to conspiracy to commit bribery and bribery of a public official in September 2014.  Jones, a retired brigadier general from the New York Army National Guard and founder of MPSC, pleaded guilty to conspiracy to commit bribery and bribery of a public official in February 2015.

The case was investigated by the FBI’s Washington Field Office, DCIS’s Mid-Atlantic Field Office and Army-CID’s Major Procurement Fraud Unit.  The case is being prosecuted by Assistant U.S. Attorney Jonathan Fahey, and Trial Attorney Alison L. Anderson of the Criminal Division’s Fraud Section.

Individuals with allegations of bribery or corruption within the NGB’s retention and recruitment contracting or at MPSC are encouraged to contact the Criminal Division of the FBI’s Washington, D.C. Field Office at (202) 278–2000.

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.

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. – Joshua Ray Abernathy, 37, of Chesapeake, was sentenced today to 90 months in prison, followed by 3 years of supervised release for mail fraud and unlawful money transactions.  The Court also ordered Abernathy to pay $1,181,755.08 in restitution to his victims and to forfeit all of the proceeds from his offense.

Abernathy pleaded guilty on March 13, 2015.  According to court documents, Abernathy, a licensed broker and financial advisory, engaged in a six-year Ponzi scheme.  Abernathy convinced his clients to transfer funds from legitimate IRA accounts to his company “Omega Investment Group.”  Abernathy claimed that he could invest the funds in “puts” and “calls” and reap fantastic returns.  In reality, Abernathy invested only a tiny portion of the money in his personal E*Trade account and used the majority of the monies to fund his extravagant lifestyle including paying for living expenses, home furnishings, restaurants, sporting goods, electronics, clothing and entertainment.  Abernathy also spent substantial investor funds for traveling including cruises, ski trips, vacations to Texas, Florida, Mexico, New York, and a three-month tour of England.  Abernathy also spent over $250,000 of client monies renting luxury automobiles including a bright orange Lamborghini.  After spending all of the client funds and with investors asking questions, Abernathy walked in to the FBI and confessed to running the Ponzi scheme.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; David M. McGinnis, Acting Postal Inspector in Charge of the U.S. Postal Inspection Service (USPIS) – Washington Division, Thomas Jankowski, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Mark S. Davis.

This case was investigated by the Tidewater Complex Financial Crimes Task Force.  Members of the Task Force include the U.S. Postal Inspection Service, the IRS Criminal Investigations Divisions, and the FBI’s Norfolk Field Office.  Assistant U.S. Attorney Melissa O’Boyle 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-21.

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