Eastern District of Virginia

ALEXANDRIA, Va. – Jon McClellan, 55, of Woodbridge, Virginia, pleaded guilty today to charges of receipt of child pornography.

According to court documents, McClellan used a peer-to-peer file sharing program to receive and collect child pornography videos and images, including numerous videos of children between 5 and 12 years old being sexually abused. In total, McClellan’s child pornography collection included over 1,500 images and 1,800 videos of children being sexually exploited.

McClellan faces a mandatory minimum penalty of five years in prison and a maximum penalty of 20 years in prison when he is sentenced on Oct. 2, 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 Gerald Bruce Lee. This case was investigated by HSI. Assistant U.S. Attorney Whitney Dougherty Russell is prosecuting the case.

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

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-CR-182.

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ALEXANDRIA, Va. – An indictment was unsealed today charging nine defendants with offenses based on their roles in complex, international stock manipulation and money laundering schemes generating approximately $6.5 million in illicit proceeds.

Harold Bailey Gallison II, 57, of Valley Center, California; Anna Hiskey, 42, of Costa Rica; Michael Randles, 47, of Costa Rica; Roger Coleman, 79, of Las Vegas; Carl Kruse Sr., 75, of Miami; Carl Kruse Jr., 50, of Miami; Frank Zangara, 52, of Locust Valley, New York; Mark Dresner, 59, of Dix Hills, New York; and Charles Moeller, 46, of Sea Cliff, New York; were charged in an indictment filed June 24, 2015, and unsealed today in the Eastern District of Virginia.

The indictment charges Gallison, Hiskey, Kruse Jr. and Kruse Sr. with one count of conspiracy to commit wire fraud and one count of securities fraud in connection with a “pump-and-dump” securities manipulation scheme involving the common stock of Warrior Girl Corp., which was quoted on the Over-the-Counter (OTC) market under the ticker symbol WRGL.  The indictment also charges Gallison, Hiskey, Zangara, Moeller and Dresner with one count of conspiracy to commit wire fraud and one count of securities fraud in connection with a pump-and-dump securities manipulation scheme involving the common stock of Everock Inc., which was quoted on the OTC market under the ticker symbol EVRN.  In addition, the indictment charges Gallison, Randles, Hiskey and Coleman with one count of conspiracy to commit money laundering.

According to the indictment, the defendants artificially “pumped” or inflated the trading volume and price of the securities by touting business activities and deceptive revenue forecasts, and by engaging in coordinated trading activity to create the appearance of increasing market demand.  The defendants then allegedly “dumped” or sold the securities at the inflated prices and laundered the proceeds from their scheme through bank accounts in the United States and overseas.

According to the allegations in the indictment, the scheme was facilitated through an offshore brokerage and money laundering platform controlled by Gallison that went by various names, including Sandias Azucaradas, Moneyline Brokers and Trinity Asset Services (collectively, Moneyline).  The defendants allegedly used Moneyline to create nominee accounts in the names of shell companies, and used those accounts to conceal both the true source and ownership of the securities and the flow of funds.

The conspirators also allegedly took elaborate steps to hide their illegal conduct from law enforcement, including the use of proprietary internal chat and telephone systems.  In a recorded call from 2010, Gallison told Randles that Moneyline maintained a private internal telephone system that did not go through a U.S. server on which he and Randles could hold “private conversation[s] that the Fed cannot get a wiretap on.”  In another conversation with Randles, Gallison noted that Moneyline’s proprietary internal chat system, which did not retain records of chats, was better than an internet service provider because “if the Fed came in with a search warrant, they’d take your computer and it’d have your last ninety days’ worth of Yahoo messengers and Skype chats.”

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

This case was investigated by FBI’s Washington Field Office. The Securities and Exchange Commission, the Financial Industry Regulatory Authority and the Criminal Division’s Office of International Affairs also provided significant assistance.  The case is being prosecuted by Assistant U.S. Attorneys James P. Gillis and Zachary Terwilliger of the Eastern District of Virginia, and Senior Trial Attorney N. Nathan Dimock of the Criminal Division’s Fraud 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-178.

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. – Alonzo Outten, 35; Jerald Outten, 26; Jermaine Jones, 38; and Deyonta Hinton, 31, all from Portsmouth, Virginia, and Garnett Brown, 34, from Chesapeake, Virginia, were arrested today on federal conspiracy charges of manufacturing, distributing, and possession with intent to distribute heroin.

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 five federally charged individuals were arrested.

The Outten organization was 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.

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.                                                          

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NORFOLK, Va. – Daniel Chase Harris, 31, of Virginia Beach, Virginia, was sentenced yesterday to 600 months in prison, followed by lifetime supervised release for his crimes including production of child pornography, use of a facility of interstate commerce to entice a minor to engage in criminal sexual activity, receipt of child pornography, transportation of child pornography, possession of child pornography and obstruction of justice.

Harris was found guilty on 31 counts on March 9, 2015, after a 12-day trial. According to court records and the evidence at trial, Harris was a Lieutenant in the U.S. Navy and a Navy Top Gun graduate stationed at Naval Air Station Oceana. Harris was originally arrested by Bedford County Sheriff’s Office in November 2013. The investigation and evidence at trial revealed that Harris posed online as a teenage boy and would convince young teen girls between the ages of 12 and 17 to send him risqué pictures of themselves.  He then extorted the girls to send him additional, sexually graphic and explicit images of themselves or he threatened them with posting the images online or sending the images to family or friends. Nine victims were involved in this case, three of whom are from Virginia.  In pronouncing the sentence, District Judge Mark S. Davis stated Harris’ actions were “sadistic” and equated to “torture.”

Homeland Security Investigations and the Southern Virginia Internet Crimes Against Children Task Force (SOVA ICAC) led the investigation in this case. Assistant U.S. Attorney Elizabeth M. Yusi and Special Assistant U.S. Attorney Wes Nance, Deputy Commonwealth’s Attorney for Bedford County, 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. 2:14-cr-76.

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NEWPORT NEWS, Va. – Keith D. Kosco, 57, of Williamsburg, Va., was sentenced today to 74 months in prison for Conspiracy to Commit Mail and Wire Fraud, Aggravated Identity Theft and Engaging in Monetary Transactions in Property Derived from Specified Unlawful Activity. Additionally, Kosco was ordered to pay restitution, jointly with his co-defendant, Julie Duffield, in excess of $740,000.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, and Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service Criminal Investigation’s Washington, D.C., Field Office made the announcement after sentencing by U.S. District Judge Robert G. Doumar.

Kosco was indicted by a federal grand jury on November 17, 2014, and pled guilty on March 17, 2015.  In a statement of facts filed with his plea agreement Keith Kosco admitted to being the owner and operator of a number of entities involved in travel, tourism and timeshare businesses including Resort Realty, Inc., Resort Solutions, Inc., and Exotic Equity Transfers, LLC (“EET”). A timeshare unit, generally a fully furnished resort accommodation, is a deeded or non-deeded interest in real estate divided into intervals, most commonly by week.  Since at least 2007, EET conducted timeshare transfers in exchange for fees charged to the original owner.

Keith Kosco and his employees represented that the timeshare unit transfers conducted by EET would be legitimate and result in clean title passing to a new owner with no further obligations of timeshare ownership (including maintenance fees) on the original owner once the transfer was complete. Transfer paperwork was handled by EET in coordination with Professional Closing Company which served as a third party closing entity, and was operated by co-defendant Julie Duffield.  From at least 2009 – 2013, Kosco, Duffield and their employees conducted fraudulent transfers of over 1,000 timeshare units into the names of stolen identities, including Kosco’s incarcerated daughter, who were unaware that they were receiving these properties, and straw buyers (about ten total), who they paid $35-$50 for each transferred unit.  The defendants collected fees for conducting the transfers from the original owners.  None of the stolen identities / straw buyers paid the required maintenance fees or taxes on the timeshare units, resulting in over $800,000 in losses to select resorts for the unpaid fees.  Kosco, Duffield and their employees engaged in various fraudulent acts in support of the scheme, including false statements and promises to resorts, propping up stolen identities with email accounts, bank accounts and tax returns, falsely notarizing signatures and preparing fraudulent deed paperwork. The transfers also had a devastating impact on the credit of the stolen identities/straw buyers.

Julie Duffield pled guilty on January 12, 2015, to conspiracy to commit mail and wire fraud. On May 5, 2015, she was sentenced to twenty-six months in prison and ordered to pay restitution, jointly with Kosco, in excess of $740,000. In a related case, Brendan Hawkins pled guilty on December 22, 2014, to conspiracy to commit mail fraud and on April 29, 2015, he was sentenced to 46 months in prison and ordered to pay more than $500,000 in restitution.

This case was investigated by the FBI and the Internal Revenue Service. Assistant U.S. Attorneys Brian J. Samuels and Kaitlin C. Gratton are prosecuting the case on behalf of the United States.

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. 4:14cr66.

RICHMOND, Va. – James Ashby Moncure, Jr., 42, of Fredericksburg, Virginia, was sentenced today to 65 months in prison, followed by three years of supervised release for wire fraud and engaging in unlawful monetary transactions.  Additionally, Moncure was ordered to pay approximately $8.3 million in restitution to his victims.

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 M. McGinnis, Acting Postal Inspector in Charge of the U.S. Postal Inspection Service (USPIS) – Washington Division, made the announcement after sentencing by U.S. District Judge Henry E. Hudson.

Moncure pleaded guilty to these charges on Feb. 6, 2015.  According to court documents, Moncure agreed that, as a partial owner of Moncure Brothers LLC, he had partnered with The Silver Companies to develop property known as the Quantico Corporate Center at Stafford (QCCS), a business park located in Stafford County, Virginia., adjacent to Marine Corps Base Quantico.  Beginning prior to January 2010 and continuing through March 2014, Moncure solicited individuals for investment opportunities in exchange for short term promissory notes offering returns ranging from 10 percent up to 25 percent.  In connection with those investments, Moncure claimed that the investment funds would be used for acquiring and developing land for the QCCS or another specified property.  He also made misrepresentations about how the promised returns would be generated and the security of investment funds.  Instead, Moncure misappropriated a significant amount of investor funds for payment of returns to earlier investors and transfers to investment trading accounts from which he day-traded stocks and options.  

This case was investigated by FBI’s Fredericksburg Resident Agency, IRS-CI, and USPIS.  Assistant U.S. Attorneys Michael Gill and Katherine Lee Martin prosecuted the case.

This investigation was coordinated by the Virginia Financial and Securities Fraud Task Force, an unprecedented partnership between criminal investigators and civil regulators to investigate and prosecute complex financial fraud cases in the nation and in Virginia.  The task force is comprised of several federal and state agencies, including the Virginia Attorney General’s Office, and it also serves as an investigative arm of the President’s Financial Fraud Enforcement Task Force (FFETF), an interagency national task force.  For more information on FFETF, visit www.stopfraud.gov.

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-137.

 

ALEXANDRIA, Va. – Keith Pyndell, 34, of Washington, D.C., was sentenced today to 186 months in prison, followed by five years of supervised release for conspiracy to distribute 280 grams or more of cocaine base, aka crack cocaine, and for possession of a firearm in furtherance of a drug trafficking crime. In connection with this conviction, Pyndell forfeited $47,200 in cash that was seized from his residence by the DEA.

Pyndell pleaded guilty on March 16, 2015.  According to court documents, Pyndell ran an organization that distributed over 280 grams of cocaine base to customers in Northern Virginia, Maryland, and Washington D.C.  Through his organization, Pyndell employed individuals as runners to deliver drugs to his customers and to return cash to him.  One of those individuals, Angela Lemons, previously pleaded guilty to conspiring to distribute cocaine base and was sentenced to serve 40 months in prison followed by three years of supervised release.  Pyndell admitted that a handgun with an obliterated serial number that was seized from his residence was used for protection in connection with his drug trafficking.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Karl C. Colder, Special Agent in Charge for DEA’s Washington Field Division, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorney Whitney Dougherty Russell is prosecuting the case.

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

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-24.

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RICHMOND, Va. – Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, provided the below statement regarding today’s opinion issued by the U.S. Court of Appeals for the Fourth Circuit:

“We are pleased with today’s ruling affirming the conviction of former Virginia governor Robert F. McDonnell. I would like to thank the appellate team for their efforts on this very challenging case: Assistant U.S. Attorneys Richard D. Cooke, Michael S. Dry, Jessica D. Aber, Ryan S. Faulconer, and Deputy Chief David V. Harbach II of the Criminal Division’s Public Integrity Section. I would also like to thank special agents with the FBI’s Richmond Division, the Virginia State Police, and IRS-Criminal Investigations for their hard work and commitment to this case.”

Robert F. McDonnell, 60, of Glen Allen, Virginia, was sentenced Jan. 6, 2015, to two years in prison, followed by two years of supervised release, for soliciting and obtaining payments, loans, gifts and other items from Star Scientific, a Virginia-based corporation, and Jonnie R. Williams Sr., Star Scientific’s then chief executive officer, in violation of federal public corruption laws.

A copy of this press release and others related to this case 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.3:14cr12.

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RICHMOND, Va. – Jerome Russell Lockhart, aka “Rome,” 36, of Chesterfield, Virginia, was sentenced today to a total of 276 months in prison, followed by four years of supervised release, for distributing 38.5 pounds (17.5 kilograms) of heroin, being a felon in possession of a firearm, and for violating the terms and conditions of his supervised release.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Karl C. Colder, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Washington Field Division; and Colonel Thierry G. Dupuis, Chief of Police for  Chesterfield County Police Department, made the announcement after sentencing by U.S. District Judge Henry E. Hudson.

Lockhart pleaded guilty on April 15, 2015, to a criminal information charging him with possession with intent to distribute heroin, and with possession of a firearm by a convicted felon.  According to the statement of facts filed with the court, Lockhart began distributing heroin shortly after he was released from federal prison on a prior drug trafficking offense. His sentence was later reduced as a result of the Fair Sentencing Act, and he was released from federal custody in 2010 to begin serving a four year term of supervised release.  Lockhart admitted to having distributed 17.5 kilograms of heroin during the last 2 ½  years, which resulted in two known overdoses that did not result in death.  Lockhart was sentenced to 240 months on the drug charges, and 120 months on the firearm charge. Those sentences will run concurrently. Lockhart was also sentenced to 36 months for violating the terms and conditions of his supervised release. The 36 months will run consecutive to the 20 years, bringing the total prison time to 23 years.   

This case was investigated by the DEA’s Washington Field Division and the Chesterfield County Police Department. Assistant U.S. Attorney Angela Mastandrea-Miller 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-0054-001-HEH.

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ALEXANDRIA, Va. – Frank Michael Pearson, 44, a former Loudon County Sheriff’s Deputy from Winchester, Virginia, was indicted by a federal grand jury today on four counts of theft concerning programs receiving federal benefits in relation to his alleged embezzlement of over $200,000 from the asset forfeiture fund at the Loudon County Sheriff’s Office.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and David J. LeValley, Special Agent in Charge of the Criminal Division, FBI Washington Field Office, announced the charges after the grand jury returned the indictment today.  An arraignment has been scheduled for July 24, 2015 at 9 a.m. before U.S. District Judge T. S. Ellis, III.

Pearson faces a maximum penalty of 10 years in prison on each count 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.

According to the indictment, beginning in 2006 Pearson was designated as the deputy responsible for overseeing the asset forfeiture program for the Loudon County Sheriff’s Office. The indictment further alleges that from in or about 2010 through in or about 2013, Pearson embarked on a scheme to embezzle and steal money totaling in excess of $200,000, which had been entrusted to him in connection with the program.  The indictment further alleges that Pearson concealed his embezzlement scheme by making false statements to his coworkers and others about the timing and fact of whether he had deposited seized money into an escrow account maintained by the Loudoun County Sheriff’s Office at a local bank.

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

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

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. 1:15cr193.

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RICHMOND, Va. – Carl E. Macchiarulo, 44, of Midlothian, Virginia, was sentenced today to 48 months in prison, followed by three years of supervised release for conspiring to distribute and possess with intent to distribute anabolic steroids.  Macchiarulo was also fined $10,000.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Division; and David McGinnis, Acting Inspector in Charge of the Washington Division of the United States Postal Inspection Service (USPIS), made the announcement after sentencing by U.S. District Judge John A. Gibney, Jr.

Macchiarulo pleaded guilty on April 8, 2015.  According to court documents, Macchiarulo operated an illegal steroid distribution business known as CK Labs out of his home in Midlothian, Virginia, between December 2012 and September 2014.  In operating the business, Macchiarulo imported raw steroid powders and pills from China and other foreign countries, manufactured finished steroid products at his home, and distributed steroids to his customers through the mail.  Macchiarulo advertised his business on various internet sites known to serve as a marketplace for the distribution of anabolic steroids.  During the course of the conspiracy, Macchiarulo imported at least 16 kg of raw steroid powders and thousands of steroid pills, and distributed steroid products to customers located in over 30 states, including to at least one amateur athlete.  As part of the plea agreement, Macchiarulo agreed to forfeit $163,455 in U.S. currency that was seized by law enforcement as proceeds of the conspiracy.

This case was investigated by the FBI’s Richmond Division and the USPIS.  Assistant U.S. Attorneys Dominick S. Gerace and 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. 3:15CR00050.

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ALEXANDRIA, Va. – Fairfax Nursing Center (FNC) has agreed to pay $97,500 to resolve allegations that it violated the Americans with Disabilities Act (ADA) by failing to provide effective communication services to individuals who are deaf or hard of hearing in the provision of medical services.

The investigation began with a complaint from the public alleging that FNC violated the ADA by failing to provide appropriate auxiliary aids and services, including sign language interpreter services, to two individuals who are deaf (two family members of a patient) during critical interactions relating to the patient’s medical care.  The complainants alleged that because of FNC’s failure to provide sign language interpreter services, these individuals were denied the benefit of effective communication with the skilled nursing facility’s clinical staff and the opportunity to effectively participate in treatment decisions.

“This office is committed to protecting the rights of those who are deaf or hard of hearing and to ensure that they are able to communicate with health care professionals, especially when patients and their companions have critical interactions with medical providers,” said U.S. Attorney Boente.

The agreement requires FNC to provide training to the skilled nursing facility’s staff on the requirements of the ADA; to adopt specific policies and procedures to ensure that auxiliary aids and services are provided promptly to patients and companions who are deaf or hard of hearing; pay $80,000 in compensatory damages to the two aggrieved individuals; establish a fund with $12,500 to sponsor training on the ADA’s requirements for others in the Virginia nursing facility industry; and pay $5,000 to the United States in order to vindicate the public interest.

This matter was investigated by Assistant U.S. Attorney Steven Gordon.

This case is a part of the Department of Justice’s Barrier-Free Health Care Initiative, which seeks to enforce the ADA’s prohibition of discrimination against disabled individuals by health care providers, including hospitals.  Through the Barrier-Free Health Care Initiative, U.S. Attorneys’ offices across the nation and the Department’s Civil Rights Division target their enforcement efforts on a critical area for individuals with disabilities—access to medical services and facilities.  The Barrier-Free Health Care Initiative is a multi-phase initiative that includes effective communication for people who are deaf or have hearing loss, physical access to medical care for people with mobility disabilities, and equal access to treatment for people who have HIV/AIDS.

The Department of Justice has a number of publications available to assist entities in complying with the ADA, including a Business Brief on Communicating with People Who Are Deaf or Hard of Hearing in Hospital Settings, at www.ada.gov/hospcombr.htm.  For more information on the ADA and to access these publications, visit ADA.gov or call the Justice Department’s toll-free ADA information Line at 800-514-0301 or 800-514-0383 (TDD).  ADA complaints may be filed by email to ada.complaint@usdoj.gov.

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. The settlement document for this case and others, under the Barrier-Free Health Care Initiative, may be found on ADA.gov.

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NORFOLK, Va. – Jason Marvin Saunders, 33, of Portsmouth, Virginia, was convicted today on narcotics conspiracy and gun charges, including conspiracy to distribute heroin, cocaine, and cocaine base, and possession of a firearm in furtherance of a drug trafficking crime.  Saunders’ twin brother and co-conspirator, Jeremy Lynn Saunders, previously pleaded guilty to drug conspiracy and firearms charges, and was sentenced to 25 years in prison on June 25, 2015.

Saunders was indicted on January 7, 2015.  According to court records and evidence at trial, from January 2012 to about August 2014, the Saunders brothers jointly distributed over 1,000 grams of heroin, over 5,000 grams of cocaine, and over 280 grams of cocaine base through an organization that they managed and used firearms to protect.  On August 23, 2014, Saunders and his brother were involved in an exchange of gunfire with a rival drug organization at another location they operated at Appomattox Avenue in Portsmouth.  In response to that incident, Saunders possessed a Taurus PT 145 Millennium Pro .45 Caliber pistol with 8 cartridges and a Ruger P85 9MM pistol.  During the execution of a search warrant on February 6, 2014, at a different location, Saunders was found in possession of approximately 125 grams of cocaine powder, 50 grams of heroin, 16 grams of crack cocaine, scales, packaging materials, cutting agents, a Makarov Special Edition .380 Caliber semi-automatic pistol with 8 cartridges, a Rohm RG10 .22 Caliber revolver, and approximately $10,274 in U.S. currency.

 

Saunders faces a maximum penalty of life in prison when sentenced on October 14, 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 Karl C. Colder, Special Agent in Charge for DEA’s Washington Office, made the announcement after the verdicts were taken by U.S. District Judge Raymond A. Jackson.  Assistant U.S. Attorneys Joseph DePadilla and Andrew Bosse prosecuted the case.

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

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15cr2.

RICHMOND, Va. – Deandre Yellardy, 24, of Richmond, was sentenced today to 120 months in prison, followed by three years of supervised release for possession of a firearm by a convicted felon.  William Bell, 30, also of Richmond, was sentenced yesterday to 84 months in prison, followed by three years of supervised release for possession of a firearm by a convicted felon and possession with the intent to distribute cocaine base.  Both charges stem from a June 12, 2014, shootout in the parking lot of the EZ Mart convenience store in Southside Richmond.

Yellardy plead guilty on March 20, 2015, and Bell pleaded guilty on March 31, 2015.  According to court documents, on June 12, 2014, a masked gunman later identified as Yellardy fired multiple shots into a vehicle occupied by Bell in the parking lot of the South Richmond EZ Mart convenience store.  Both Bell and his passenger were wounded.  Bell returned fire with a .40 caliber pistol, but failed to hit Yellardy.  Richmond Police officers stopped Yellardy in a vehicle as he was fleeing the scene and recovered both a 9mm firearm and mask in his possession.  Bell fled the scene and failed to report the incident to police.  Shell casings from the EZ Mart shooting scene were later matched to the gun recovered from Yellardy.  At the time of the shooting, Yellardy was a convicted felon, and as a result, was prohibited from possessing a firearm.   

On Sept. 22, 2014, Bell refused to stop for a Virginia State Police Trooper in Richmond related to a traffic offense.  During the ensuing pursuit, Bell threw a .40 caliber pistol and approximately 13 grams of cocaine base from his vehicle.  The firearm and cocaine were later recovered.  Shell casings from the EZ Mart shooting scene were later forensically matched to the gun recovered from Bell.  At the time of both incidents, Bell was a convicted felon, and as a result, was prohibited from possessing a firearm.

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 sentencing by U.S. District Judge M. Hannah Lauck.

This case was investigated by the ATF’s Washington Field Division, the Richmond Police Department, and the Virginia State Police. Assistant U.S. Attorney Erik S. Siebert 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.’s 3:15-cr-19 and 3:15cr20.

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ALEXANDRIA, Va. – VMware Inc. and Carahsoft Technology Corporation have agreed to pay $75.5 million to resolve allegations that they violated the False Claims Act by misrepresenting their commercial pricing practices and overcharging the government on VMware software products and related services. 

VMware is a Delaware corporation that specializes in computer virtualization software and has its principal place of business in Palo Alto, California.  Carahsoft is a privately held Maryland corporation that distributes information technology products to federal, state and local governments and has its principal place of business in Reston, Virginia. 

“Transparency by contractors in the disclosure of their discounts and prices offered to commercial customers is critical in the award of GSA Multiple Award Schedule contracts and the prices charged to government agency purchasers,” said U.S. Attorney Dana J. Boente of the Eastern District of Virginia.

“Today’s settlement demonstrates our continuing vigilance to ensure that those doing business with the government give the taxpayers a fair deal,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Department of Justice’s Civil Division.  “Government contractors who seek to profit improperly at the expense of taxpayers face serious consequences.”

“We will continue to look into all allegations of false claims in GSA contracts,” said Acting Inspector General Robert C. Erickson of the U.S. General Services Administration (GSA).  “I appreciate the hard work of our auditors, our agents and the attorneys on this complex case that has resulted in a large amount of money being returned to the United States.”

Under the Multiple Award Schedule (MAS) Program, prospective vendors agree to disclose commercial pricing policies and practices to the GSA in exchange for the opportunity to gain access to the broad federal marketplace and the ease of administration that comes from selling to any government purchaser under one central contract.  GSA regulations require that, during contract negotiations with GSA, prospective vendors seeking an MAS contract make “current, accurate and complete” disclosures of the standard and non-standard discounts they offer to commercial customers.  The GSA relies on the accuracy of these disclosures in order to negotiate fair pricing for government purchasers.  Additionally, after the MAS contract is awarded, regulations require that MAS Program vendors disclose to the GSA changes in their commercial pricing practices, including improved discounts that are offered to commercial customers, after the MAS contract is in place.

The settlement resolves allegations that VMware and Carahsoft made false statements to the government in connection with the sale of VMware products and services under Carahsoft’s MAS contract.  These false statements allegedly concealed the companies’ commercial pricing practices and enabled the companies to overcharge the government for VMware’s products and services from 2007 through 2013. 

The civil settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the government’s recovery.  The civil lawsuit was filed in the Eastern District of Virginia by Dane Smith, who is a former vice president of the Americas at VMware Inc.  Mr. Smith’s share of the recovery has not been determined.

The settlement was the result of a coordinated effort by the U.S. Attorney’s Office of the Eastern District of Virginia, the Civil Division’s Commercial Litigation Branch, and the GSA’s Office of Inspector General, with assistance from the Defense Criminal Investigative Service Mid-Atlantic Field Office.  This matter was investigated by Assistant U.S. Attorney Steve Gordon and Benjamin Wei of the Department of Justice.

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. 10-CV-769. 

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

ALEXANDRIA, Va. – VMware Inc. and Carahsoft Technology Corporation have agreed to pay $75.5 million to resolve allegations that they violated the False Claims Act by misrepresenting their commercial pricing practices and overcharging the government on VMware software products and related services. 

VMware is a Delaware corporation that specializes in computer virtualization software and has its principal place of business in Palo Alto, California.  Carahsoft is a privately held Maryland corporation that distributes information technology products to federal, state and local governments and has its principal place of business in Reston, Virginia. 

“Transparency by contractors in the disclosure of their discounts and prices offered to commercial customers is critical in the award of GSA Multiple Award Schedule contracts and the prices charged to government agency purchasers,” said U.S. Attorney Dana J. Boente of the Eastern District of Virginia.

“Today’s settlement demonstrates our continuing vigilance to ensure that those doing business with the government give the taxpayers a fair deal,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Department of Justice’s Civil Division.  “Government contractors who seek to profit improperly at the expense of taxpayers face serious consequences.”

“We will continue to look into all allegations of false claims in GSA contracts,” said Acting Inspector General Robert C. Erickson of the U.S. General Services Administration (GSA).  “I appreciate the hard work of our auditors, our agents and the attorneys on this complex case that has resulted in a large amount of money being returned to the United States.”

Under the Multiple Award Schedule (MAS) Program, prospective vendors agree to disclose commercial pricing policies and practices to the GSA in exchange for the opportunity to gain access to the broad federal marketplace and the ease of administration that comes from selling to any government purchaser under one central contract.  GSA regulations require that, during contract negotiations with GSA, prospective vendors seeking an MAS contract make “current, accurate and complete” disclosures of the standard and non-standard discounts they offer to commercial customers.  The GSA relies on the accuracy of these disclosures in order to negotiate fair pricing for government purchasers.  Additionally, after the MAS contract is awarded, regulations require that MAS Program vendors disclose to the GSA changes in their commercial pricing practices, including improved discounts that are offered to commercial customers, after the MAS contract is in place.

The settlement resolves allegations that VMware and Carahsoft made false statements to the government in connection with the sale of VMware products and services under Carahsoft’s MAS contract.  These false statements allegedly concealed the companies’ commercial pricing practices and enabled the companies to overcharge the government for VMware’s products and services from 2007 through 2013. 

The civil settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the government’s recovery.  The civil lawsuit was filed in the Eastern District of Virginia by Dane Smith, who is a former vice president of the Americas at VMware Inc.  Mr. Smith’s share of the recovery has not been determined.

The settlement was the result of a coordinated effort by the U.S. Attorney’s Office of the Eastern District of Virginia, the Civil Division’s Commercial Litigation Branch, and the GSA’s Office of Inspector General, with assistance from the Defense Criminal Investigative Service Mid-Atlantic Field Office.  This matter was investigated by Assistant U.S. Attorney Steve Gordon and Benjamin Wei of the Department of Justice.

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. 10-CV-769. 

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

ALEXANDRIA, Va. – Twin brothers Muneeb and Sohaib Akhter, 23, of Springfield, Virginia, pleaded guilty today to charges of conspiracy to commit wire fraud, conspiracy to access a protected computer without authorization, and conspiracy to access a government computer without authorization.  Muneeb Akhter also pleaded guilty to additional charges of accessing a protected computer without authorization, making a false statement, and obstructing justice.

According to the defendants’ statements of facts, which were filed with their plea agreements, beginning in or about March 2014, Muneeb Akhter hacked into the website of a cosmetics company and stole thousands of its customers’ credit card and personal information.  The Akhter brothers and co-conspirators used the stolen information to purchase goods and services, including flights, hotel reservations, and attendance at professional conferences.  Muneeb Akhter also provided stolen information to an individual he met on the “dark net,” who sold the information to other dark-net users and gave Akhter a share of the profits.

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

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

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

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

The Akhter twins were indicted by a federal grand jury on April 30, 2015.  Muneeb Akhter faces a maximum penalty of 50 years in prison, while Sohaib Akhter faces a maximum penalty of 30 years in prison.  Both men will be sentenced on Sept. 25, 2015.  The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Gregory Marshall, Chief Security Officer, Department of Homeland Security (DHS); Gregory Starr, Assistant Secretary for the U.S. Department of State’s Bureau of Diplomatic Security; and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the pleas were accepted by U.S. District Judge T.S. Ellis, III.

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

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ALEXANDRIA, Va. – Nibedita Mohanty, M.D., 56, of Stafford, Virginia, was sentenced today to 48 months in prison, followed by three years of supervised release for distribution and dispensation of controlled substances and aiding and abetting health care fraud. Dr. Mohanty, who was formerly the Chief of Medicine at Stafford Hospital from June 2009 through Feb. 12, 2013, was also fined $15,000 and ordered to pay a forfeiture of cash proceeds in the amount of $43,120.

Dr. Mohanty pleaded guilty on Feb. 23, 2015. According to court documents, Dr. Mohanty admitted to issuing prescriptions for oxycodone which were not for a legitimate medical purpose and beyond the bounds of medical practice. In one such instance, on May 2, 2011, Dr. Mohanty issued a prescription for oxycodone to patient who experienced a nonfatal narcotics overdose.  Dr. Mohanty subsequently treated the patient at the hospital.  On May 31, 2011, Dr. Mohanty issued another oxycodone prescription to same patient.  The next day, the patient was found deceased in the bathroom of a friend’s home.  The cause of death was determined to be accidental acute combined oxycodone and imipramine toxicity.

In another instance, on Oct. 3, 2011, Dr. Mohanty issued a prescription for oxycodone to a patient. Nine days later the patient was found unresponsive in her home.  Hospital records and testimony would have shown that the nonfatal overdose was oxycodone related.

In addition, Dr. Mohanty admitted that she aided and abetted a patient in the commission of health care fraud.  Dr. Mohanty acknowledged that she did not possess a “X” DEA number, nor was she authorized for office-based narcotic buprenorphine treatment.  Despite this Dr. Mohanty prescribed Subutex, which contains buprenorphine, to a patient who she was treating for drug addiction and dependence, which was billed to and paid for by the patient’s health insurance.

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; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; and Charles E. Jett, Stafford County Sheriff, made the announcement after sentencing by U.S. District Judge Liam O’Grady.

The case was investigated by the Stafford County Sheriff’s Office, and the FBI’s Richmond and Washington Field Offices.  Assistant U.S. Attorney Gene Rossi and Special Assistant U.S. Attorneys Jennifer Ballantyne and Nicole Grosnoff 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-256.

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25 Years in Prison for Distributing in excess of 1,000 grams of heroin

NORFOLK, Va. – Jeremy Lynn Saunders, 33, of Portsmouth, Virginia, was sentenced today to 300 months in prison, followed by 5 years of supervised release, for conspiracy to distribute heroin, cocaine, and cocaine base, and for possession of a firearm in furtherance of a drug trafficking crime.

Saunders pleaded guilty on Jan. 20, 2015.  According to court documents, from January 2012 to about August 2014, Saunders distributed over 1,000 grams of heroin, over 5,000 grams of cocaine, and over 280 grams of cocaine base through an organization that he helped manage and that he used firearms to protect.  Saunders was found in possession of 39 grams of heroin and a firearm by Portsmouth Police Department officers during the execution of a search warrant at an address located at Seventh Street in Portsmouth on Feb. 6, 2014.

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

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

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15cr2.

Bought and sold in excess of one kilogram of heroin in Portsmouth and Norfolk

NORFOLK, Va. – Theodore M. Vann, aka Flatline, 32, of Portsmouth, Virginia, and Antwane L. Williams, aka Neno, 26, also of Portsmouth, pleaded guilty today to charges relating to their distribution of heroin in Norfolk. Vann also pleaded guilty to being a felon in possession of a firearm. 

Vann and Williams were indicted by a grand jury on May 17, 2015, and will be sentenced on Sept. 24, 2015. Vann faces a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison. Williams faces a mandatory minimum sentence of five years in prison and a maximum sentence of 40 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

According to the statement of facts filed with the plea agreements, Vann was the highest ranking member of the Bloods gang set Gorilla Mafia Piru.  Together with his fellow gang member and second in command, Antwane Williams, they manufactured and distributed in excess of one kilogram of heroin in Portsmouth from late 2013 to August 2014.  Vann and Williams conspired with co-conspirators to distribute heroin in the Ghent area of Norfolk, Portsmouth, and other places throughout the Eastern District of Virginia.

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 Raymond A. Jackson.

This case was investigated by the FBI’s Norfolk Field Office with the assistance of the Portsmouth Police Department.  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-60.                         

NORFOLK, Va. – Cornelius J. Gaymon, 34, and Tedrick O. Speller, 33, both of Norfolk, have pleaded guilty to heroin and narcotics charges. Gaymon, who is a 10-time convicted felon, pleaded guilty today to possession with intent to distribute 23 grams of heroin. Speller pleaded guilty yesterday to possession with intent to distribute 100 grams of crack cocaine.

In a statement of facts filed with Gaymon’s plea agreement, law enforcement officers recovered approximately 23 grams of heroin, which was packaged in separate bags – one of which contained 83 capsules filled with heroin. Additionally, law enforcement officers recovered crack cocaine, cocaine, marijuana and $1,313 dollars in cash, and an industrial sized, six-ton hydraulic press machine that is believed to be used to compress heroin in order to expand its size and create greater profits. A cutting agent, packaging materials and a Ziploc bag containing clear glycerin capsules were also recovered. Gaymon faces a maximum penalty of 20 years in prison when he is sentenced on Oct. 2, 2015.

In a statement of facts filed with Speller’s plea agreement, law enforcement officers conducted several undercover purchases of crack cocaine from Speller before executing a search warrant on his residence in the Berkley neighborhood of Norfolk. Law enforcement officers recovered crack cocaine, heroin, cocaine, marijuana, firearms, digital scales, drug packaging materials, and several thousand dollars.  Speller also maintained a storage unit, which contained nearly $50,000 dollars. Speller faces a minimum penalty of five years in prison and a maximum penalty of 40 years in prison when he is sentenced on Oct. 2, 2015.

The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Mark R. Herring, Virginia Attorney General, made the announcement after the pleas were accepted by U.S. Magistrate Judge Douglas E. Miller and Lawrence R. Leonard.

This case was investigated by the DEA’s High Intensity Drug Trafficking Area (HIDTA) Task Force with the assistance of nearly 40 officers from the Norfolk Police Department.  Virginia Assistant Attorney General and Special Assistant U.S. Attorney John F. Butler and Assistant U.S. Attorney Andrew C. Bosse 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-066, and 2:15-cr-067.

Involved in the production and shipment of hundreds of kilograms of cocaine

NORFOLK, Va. – Hermes Andrade Quintero, 45, of Medellin, Colombia, was sentenced today to 164 months in prison, followed by five years of supervised release, for conspiracy to manufacture and distribute cocaine for the purpose of importation into the United States.  His co-conspirator Osvaldo Jose Lopez Herrera, 37, of Ayapel Cordoba, Colombia, was sentenced to a term of 156 months, followed by five years of supervised release, for the same charge.  

Dana J. Boente, United States Attorney for the Eastern District of Virginia; Karl C. Colder, Special Agent in Charge for Drug Enforcement Administration’s (DEA) Washington Office; and John S. Adams, Special Agent in Charge of the Federal Bureau of Investigation’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.

Andrade Quintero and Lopez Herrera pleaded guilty on March 12 and 23, 2015, respectively, to conspiracy to manufacture and distribute cocaine for the purpose of importation into the United States.  According to court documents, both men are associates of the Bacrim Los Urabeños, and admitted to their roles in the production of large quantities of cocaine in Colombia, and the subsequent transport of the cocaine to other members of the conspiracy for the eventual importation into the United States.  Within the conspiracy, Andrade Quintero was responsible for constructing and operating a cocaine laboratory, transporting loads of cocaine, finding sellers of cocaine to fill orders, and coordinating payment for various loads of narcotics.  Over the course of his two-year involvement in the conspiracy, he was attributed with the production and distribution of nearly 900 kilograms of cocaine.  Lopez Herrera’s role was that of a courier, transporting several hundred kilograms of cocaine at a time to the Colombian coast, where additional co-conspirators exported it to the United States and elsewhere.  All told, during the four years he worked with the conspiracy, Lopez Herrera was involved in the transportation of 2,300 kilograms of cocaine. 

This case was investigated by the Norfolk Resident Office and Bogota, Colombia Country Office of the Drug Enforcement Administration, the Federal Bureau of Investigation, and the Colombian National Police.  Assistant U.S. Attorneys V. Kathleen Dougherty and Kevin M. Comstock are prosecuting the case on behalf of the United States.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:13cr122.

Woodbridge Man involved in Armed Robbery and Assault Crimes

ALEXANDRIA, Va. – Johnathan Davon Coleman, aka “Swag,” 23, of Woodbridge, Virginia, was sentenced today to 84 months in prison, followed by five of supervised release for his role in the armed robbery of an escort.

Coleman pleaded guilty on March 18, 2015, to using, carrying, and brandishing a firearm during or in relation to a crime of violence.  According to court documents, Coleman, along with another Bloods gang member, robbed an escort at gun point on June 26, 2013, at a Dumfries, Virginia hotel.  Coleman set up the escort for the robbery by pretending to be a client. He pushed his way into her hotel room, shoved the victim into a mirror, and ultimately robbed her while brandishing a firearm.  Court records also reveal that Coleman took part in a Nov. 10, 2014, assault on a residence that involved attacking an individual who answered the door, throwing bricks through the windows of the residence, and discharging a firearm into the residence.  This incident occurred in Prince William County, Virginia. 

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; and Stephan M. Hudson, Prince William County Chief of Police; made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.

This case was investigated by the FBI’s Washington Field Office, the Fairfax County Police Department, and the Prince William County Police Department.  Assistant U.S. Attorney G. Zachary Terwilliger is prosecuting the case with assistance from the Prince William County 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 by searching for Case No. 1:15-cr-012.

 

Owner’s Son Convicted of Conspiracy and Arson

ALEXANDRIA, Va. – Lawrence Wayne Reese, 56, formerly of Ft. Belvoir, Virginia, was convicted by a jury yesterday of nine separate offenses, including arson, use of fire in commission of another federal offense, and multiple counts of fraud related to the submission of Reese’s fraudulent insurance claim.  Lawrence Reese’s son, Lance Terrell Reese, 28, formerly of Ft. Belvoir, Virginia, was also convicted of arson and conspiracy to commit arson following a jury trial in which he was a co-defendant with his father.

The Reeses were indicted on February 12, 2015, for their respective roles in the February 6, 2013, arson of the “Sub Shop,” which was located on Richmond Highway in Lorton, Virginia.  Lawrence Reese owned and operated the business.  Through over five hundred hours of financial analysis performed by an ATF Senior Forensic Auditor, the United States proved at trial that the business was financially insolvent.  Specifically, Lawrence Reese’s business reported losses of approximately $60,000 on its 2012 U.S. income tax return.  Due to financial strain, Lawrence Reese recruited his son, co-defendant Lance Reese, and Horace Thompson to burn down the Sub Shop.  Horace Thompson was previously tried and convicted in the Eastern District of Virginia.

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

Lawrence and Lance Reese will be sentenced on September 25, 2015.  Lawrence Reese faces a mandatory minimum of ten years and a maximum of twenty years of imprisonment and Lance Reese faces a mandatory minimum of five years and a maximum of ten years in prison at sentencing.  The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police; and Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after the verdict was accepted by U.S. District Judge Liam O’Grady.

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

Manassas man, a retired Army Sergeant Major, was working as a civilian contracting official for the Army at the Pentagon

ALEXANDRIA, Va. – James Glenn Warner, 44, of Manassas, Virginia, was sentenced today to 42 months in prison, followed by three years of supervised release, for soliciting a $500,000 bribe from executives working for a private company on a contract that Warner managed out of the Pentagon. Warner was also ordered to pay $50,000 in forfeiture.

According to court documents, in October 2014, Warner made arrangements to meet with two executives of Company A, a Virginia-based company which held a five-year contract with the Department of the Army worth up to $120 million.  At the meeting, which took place at a restaurant located in the Pentagon Centre in Arlington, Virginia, Warner instructed the two executives to communicate with him by typing messages into his cell phone, which was passed around the table.  Warner then passed a menu to the two executives.  Inside the plastic covering for the center section of the menu was a piece of paper which outlined a bribe and extortion solicitation, suggesting that if Company A paid $500,000 it would secure a contract renewal from the Department of the Army and that alleged damaging information about Company A would be destroyed.  The Company A executives declined Warner’s solicitation, reported the conduct and began cooperating with law enforcement agents.  Acting at the direction of law enforcement, a Company A executive then met with Warner on five subsequent occasions, paying Warner a total of $150,000 cash bribes out of the total $500,000 solicited by Warner.  On Jan. 28, 2015, at the last of these meetings, Warner was arrested while in possession of $100,000 in bribe payments.

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; Robert E. Craig, Special Agent in Charge, Mid Atlantic Field Office, Defense Criminal Investigative Service; and Frank Robey, Director, Major Procurement Fraud Unit, U.S. Army Criminal Investigation Command, made the announcement after the plea was accepted by U.S. District Judge Leonie M. Brinkema.

This case was investigated by the FBI’s Washington Field Office, the Defense Criminal Investigative Service, and the U.S. Army Criminal Investigative Command. Assistant U.S. Attorneys Kosta S. Stojilkovic and Mark D. Lytle are prosecuting the case.

Any person who believes they may have information regarding public corruption or fraud in the Northern Virginia area is encouraged to call the FBI's Northern Virginia Public Corruption Hotline at 703-686-6225, or the Defense Criminal Investigative Service Hotline at 800-424-9098, or the U.S. Army Criminal Investigative Command Hotline at 844-276-9243.

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-77.

 

Distributed child pornography via KIK messenger

NORFOLK, Va. – Dwight McEachin, 20, of Virginia Beach, Virginia, was sentenced today to 120 months in prison, followed by lifetime supervised release for distributing child pornography.

McEachin pleaded guilty on March 3, 2015. According to court documents, McEachin was arrested on Dec. 15, 2014, after admitting to investigators that he used KIK messenger to trade images containing child pornography.  Investigators learned of McEachin during the course of an investigation into another man in Florida who was producing child pornography with two children. During the investigation, an undercover investigator exchanged messages with McEachin via KIK messenger, some of which included images of child pornography being sent by McEachin to the undercover investigator. 

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Norfolk, made the announcement after sentencing by U.S. District Judge Mark S. Davis.

This case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Elizabeth M. Yusi is prosecuting the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-003.

 

Defendant Attempted to Pass Navy Supercarrier Schematics to Egypt

NORFOLK, Va. – Mostafa Ahmed Awwad, 36, of Yorktown, Virginia, pleaded guilty today to charges of attempted espionage relating to his attempt to provide schematics of the Navy’s newest nuclear aircraft carrier, the USS Gerald R. Ford, to Egypt.

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

“Awwad pleaded guilty to leveraging his position within the Navy to share the schematics of the USS Gerald R. Ford nuclear aircraft carrier with what he believed to be a foreign government,” said John Carlin, Assistant Attorney General for National Security.  “The National Security Division will continue to pursue and bring to justice those who abuse their access to sensitive defense information.  I would like to thank all of the special agents, prosecutors and other personnel whose work led to the guilty plea in this case.”

“This case underscores the persistent national security threat posed by insiders stealing critical national defense information in order to benefit foreign governments,” said Randall C. Coleman, Assistant Director of the FBI’s Counterintelligence Division. “Fortunately, the aggressive counterintelligence posture of the FBI and our interagency partners enabled the identification and neutralization of Awwad’s efforts before he transferred any information to a foreign power.   Working together, we prevented the loss of billions of dollars in research costs and the exposure of potential vulnerabilities to our newest generation of nuclear aircraft carrier.”

"This case demonstrates that NCIS aggressively pursues anyone who would endanger our national security by targeting critical platforms like the Ford class carrier,” said Susan Triesch, Special Agent in Charge of the NCIS Norfolk Field Office. “The close collaboration between NCIS and the FBI thwarted this insider threat and we will continue cooperative efforts to safeguard those who protect and serve in the Department of the Navy."

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

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

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

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

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

Awwad pleaded guilty to a criminal information charging him with attempted espionage, and his plea was accepted by U.S. District Court Judge Raymond A. Jackson of the Eastern District of Virginia.  He will be sentenced on Sept. 21, 2015.  The maximum penalty for this offense is life in prison, but the plea agreement recommends that Awwad receive a sentence in the range of eight to 11 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.

This case was investigated by the FBI’s Norfolk Field Office and the Naval Criminal Investigative Service, in cooperation with the Department of Navy. Prosecuting the case on behalf of the United States are Assistant U.S. Attorney’s Benjamin L. Hatch and Joseph E. DePadilla, and Department of Justice, National Security Division Counterespionage Senior Trial Attorney Heather M. Schmidt. 

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-163.

ALEXANDRIA, Va. – Tony Chandler, 68, of Severn, Maryland, pleaded guilty today to charges of conspiracy to commit wire fraud and a conflict of interest related to his conduct as a U.S. Department of State contracting officer’s representative. In a related case, Curtis L. Wrenn, Jr., 60, of Triangle, Virginia, formerly the president of a contractor performing under Chandler’s supervision, pleaded guilty today to making a false statement to the State Department by concealing that an internal investigation conducted by the contractor discovered credible information of fraud involving Chandler and Marvin Hulsey, 52, of Stafford, Virginia, one of Wrenn’s employees.   

In statements of facts filed with the plea agreements, Chandler admitted to conspiring with Hulsey to submit false invoices to the State Department in order to conceal unallowable costs for nutritional supplements purchased by employees under Hulsey’s supervision. As part of the scheme, Hulsey caused the employees to be reimbursed by his employer for the nutritional supplement purchases, and then caused false invoices to be made and submitted to the State Department for the cost of the nutritional supplements. Chandler, as an authorized distributor of the nutritional supplements for a multi-level marketing company, earned commissions in excess of $25,000 from the purchases made by Hulsey’s employees. Despite knowing that he was personally profiting from the sales of the nutritional supplements, Chandler, in his official capacity, approved the majority of the false invoices. The false invoices submitted to the State Department as part of the scheme totaled more than $170,000. 

Wrenn, as the president of the State Department contractor employing Hulsey, later learned of Hulsey’s submission of false invoices to the State Department and of Chandler’s role in the scheme. Wrenn knew that he had a responsibility under the Federal Acquisition Regulation to timely disclose to the government credible evidence of fraud, but instead omitted facts related to the fraud from the final letter delivered to the State Department. After submitting the altered letter, Wrenn met with Chandler and told him he had “saved his bacon.”  Wrenn later wrote in an email that he told Chandler “to get this resolved with minimal questions or we (sic) throw him under the bus.”   

Chandler was previously indicted by a federal grand jury on May 14, 2015. Chandler faces a maximum penalty of 25 years in prison if convicted, while Wrenn faces a maximum penalty of five years in prison if convicted. Both defendants will be sentenced on Sept. 18, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

Hulsey was indicted with Chandler on May 14, 2015 for wire fraud and conspiracy to commit wire fraud. Hulsey pleaded not guilty to all charges before U.S. District Judge Claude M. Hilton on May 29, 2015 and is scheduled for trial on Aug. 17, 2015. 

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Steve A. Linick, Inspector General for the U.S. Department of State and Broadcasting Board of Governors; and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Claud M. Hilton.  

This case was investigated by the U.S. Department of State, Office of Inspector General (DOS-OIG) and the FBI’s Washington Field Office. Substantial assistance was provided by the Criminal Analysis Branch of the DOS-OIG. Special Assistant U.S. Attorney Brian D. Harrison and Assistant U.S. Attorney Grace L. Hill 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 for Chandler and Hulsey may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-137.  Related court documents and information concerning Wrenn may be found on PACER by searching for Case No. 1:15-cr-150.

First Criminal Sentence in the United States For

Campaign Finance Coordination between Political Committees

 

ALEXANDRIA, Va. – Tyler Eugene Harber, 34, of Alexandria, a former campaign finance manager and political consultant, was sentenced today to 24 months in prison, followed by two years of supervised release for coordinating $325,000 in federal election campaign contributions by a political action committee (PAC) to a Congressional campaign committee. 

This is the first criminal prosecution in the United States based upon the coordination of campaign contributions between political committees.  As a condition of Harber’s supervised release, he is prohibited from participating in a political campaign for the duration of his supervised release.

“Campaign finance laws exist to guard against illegal activity such as coordinated campaign contributions,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia.  “The citizens of the Commonwealth of Virginia can rely on this office enforce federal campaign finance law.”

“The significant prison sentence imposed on Tyler Harber should cause other political operatives to think twice about circumventing laws that promote transparency in federal elections,” said Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.  “As the first conviction for illegal campaign coordination, this case stands as an important step forward in the criminal enforcement of federal campaign finance laws.  Illegal campaign coordination can be difficult to detect, which is why we strongly encourage party or campaign insiders to come forward and blow the whistle.”

“As the 2016 election gears up, there may be others, similar to Mr. Harber, who may view campaigns as a venue to misappropriate funds,” said Acting Special Agent in Charge Jennifer Leonard of the FBI’s Washington D.C. Field Office’s Criminal Division.  “With millions of dollars in play, donors should be aware of how their money will be spent prior to making a donation to a SuperPac to ensure that their contributions are being legally expended.”

Harber pleaded guilty on Feb. 12, 2015 to one count of coordinated federal election contributions and one count of making false statements to the FBI.

According to plea documents, Harber was the Campaign Manager and General Political Consultant for a candidate for Congress in the November 2012 general election.  At the same time, Harber participated in the creation and operation of a PAC, which was legally allowed to raise and spend money in unlimited amounts from otherwise prohibited sources to influence federal elections so long as it did not coordinate expenditures with a federal campaign. 

Harber admitted, among other things, that he made and directed coordinated expenditures by the PAC to influence the election with $325,000 of political advertising opposing a rival candidate.  The coordination of expenditures made them illegal campaign contributions to the authorized committee of Harber’s candidate, and Harber admitted that he knew this coordination of expenditures was an unlawful means of contributing money to a campaign committee.  He further admitted that he used an alias and other means to conceal his action from inquiries by an official of the same political party as Harber’s candidate.

Harber further admitted that he told multiple lies when interviewed by the FBI concerning his activities.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division; and Acting Special Agent in Charge Jennifer Leonard of the FBI’s Washington D.C. Field Office’s Criminal Division made the announcement after the sentence was delivered by U.S. District Judge Liam O’Grady.

This case was investigated by the FBI’s Washington Field Office, Northern Virginia Resident Agency.  The case is being prosecuted by Assistant U.S. Attorney Mark D. Lytle of the Financial Crimes and Public Corruption Unit of the Eastern District of Virginia, and Richard C. Pilger, Director of the Election Crimes Branch of the Criminal Division’s Public Integrity 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. 1:14-cr-373.

17-year-old Facilitated Travel to Syria for 18-year-old Prince William County Resident

ALEXANDRIA, Va. – Ali Shukri Amin, 17, of Manassas, Virginia, pleaded guilty today to charges of conspiring to provide material support and resources to the Islamic State in Iraq and the Levant (ISIL), a designated foreign terrorist organization. He will be sentenced on Aug. 28, 2015.

“Today’s guilty plea 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, and prosecute them to the full extent of the law.”

“Ali Shukri Amin is a 17-year-old American who pleaded guilty to providing material support to the Islamic State in Iraq and the Levant, aka ISIL, and he used social media to do so” said John Carlin, Assistant Attorney General for National Security. “Around the nation, we are seeing ISIL use social media to reach out from the other side of the world.  Their messages are reaching America in an attempt to radicalize, recruit and incite our youth and others to support ISIL's violent causes.  This case serves as a wake-up call that ISIL's propaganda and recruitment materials are in your communities and being viewed by your youth.  This challenge requires parental and community awareness and action to confront and deter this threat wherever it surfaces.”

“Ali Amin’s guilty plea is the latest in a series of cases that highlights the impact and danger of online extremist propaganda,” said Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office.  “From the comfort of his home in Northern Virginia, Amin developed a prolific online presence which directly impacted vulnerable individuals to financially support ISIL and propelled at least one of them to travel overseas to join ISIL in Syria. The FBI, through our Joint Terrorism Task Force, is dedicated to protection the United States against the continuing evolution of ISIL and their supporters.”

“As a long standing member of the JTTF we support the investigation and prosecution of persons who pose a threat to our county and our Nation,” said Stephan Hudson, Prince William County Chief of Police. “In order to ensure our safety, it is incumbent upon all of us to pay attention and report suspicious activity to law enforcement. This case is particularly chilling in that our vulnerable young people have been targeted for participation in terrorism.  Social media has many helpful applications however it can be corrupted and used for unlawful purposes.  As parents, we need to do our best to monitor our children's on line activity.”

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

Amin was charged by criminal information during the court hearing today, and faces a maximum penalty of 15 years in prison if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; and Stephan Hudson, Prince William County Chief of Police, made the announcement after the plea was accepted by U.S. District Judge Claude M. Hilton.

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 are prosecuting 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.

Agents recovered high-purity methamphetamine, cocaine and crack cocaine

NORFOLK, Va. – Isaac Deleon Nevares, 51, of Norfolk, pleaded guilty today to drug conspiracy and firearm charges.

Nevares was indicted by a federal grand jury on April 8, 2015.  According to court documents, ATF conducted a series of controlled purchases of cocaine, “crack” cocaine, and handguns from Nevares’s co-defendant Anthony Tillman Quinones, whom Nevares supplied with the drugs.  After executing search warrants on multiple residences involved in the drug-trafficking conspiracy, agents were led to a house that Nevares used to store drugs.  There, they recovered over one kilogram of high-purity methamphetamine, 400 grams of cocaine, 270 grams of crack cocaine, and two handguns and a semiautomatic rifle.  Tillman Quinones, who was indicted with Nevares, pleaded guilty to drug trafficking conspiracy and firearms charges on May 19.

Nevares will face a maximum penalty of life in prison when he is sentenced on October 2, 2015, by Chief Judge Rebecca Beach Smith of the U.S. District Court for the Eastern District of Virginia.  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. Magistrate Judge Lawrence R. Leonard.

This case was investigated by the ATF with the assistance of the Norfolk Police Department.  Assistant U.S. Attorney Andrew C. Bosse 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-38.

NEWPORT NEWS, Va. – Patrick O. Cox, 20, of Heathsville, Va., and Avery Carter, 20, of Chesterfield, Va., plead guilty yesterday to theft of firearms. In addition, Cox pled guilty to being a felon in possession of a firearm.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Charles E. Smith, ATF Special Agent in Charge, made the announcement after the plea was accepted by U.S. District Judge Robert G. Doumar.

Cox and Carter were indicted by a federal grand jury on April 15, 2015. Cox faces a maximum penalty of ten years in prison on each count if convicted.  Carter faces a maximum penalty of ten years in prison if convicted.  The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

According to a statement of facts filed with their plea agreements, at approximately 1:32 a.m. on January 15, 2015, three individuals broke into the Gloucester Pawn Shop.  They wore masks and carried tools to break into the firearm display cases.  They stole a total of twenty firearms and later admitted to participating in the burglary.  Both Cox and Carter will be sentenced on September 15, 2015, in U.S. District Court in Norfolk. A third individual, Donovan Carlos, is proceeding to trial which is currently set for July 7, 2015, in Newport News.

This case was investigated by ATF and the Gloucester Sheriff’s Department. Assistant U.S. Attorney Robert E. Bradenham, II is prosecuting the case on behalf of the United States.

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. 4:15cr20.

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NORFOLK, Va. – German Alvarado Ponce, aka Herman Alvaniz, 37, of Chesapeake, Virginia, was sentenced today to 240 months in prison, followed by five of supervised release on a drug conspiracy charge.

Ponce and five co-defendants were indicted Dec. 17, 2014, and have all pleaded guilty.   According to court documents, Ponce led a drug trafficking ring that distributed in excess of 100 kilograms of cocaine in Chesapeake and Portsmouth, Virginia.  The DEA conducted a 40-day wiretap of Ponce’s phones, and in July 2014 conducted a takedown of the six charged defendants which resulted in the seizure of 5.5 kilograms of cocaine and over $197,000.

Name

Date of Guilty Plea

Date of Sentencing

German Alvarado Ponce

March 6, 2015

June 2, 2015

Ismael Diaz Amestica

March 18, 2015

June 24, 2015

Kenneth Maurice Bell

February 11, 2015

July 29, 2015

Janette Elena Cruz Miller

March 16, 2015

June 24, 2015

Altagracia Acosta Suarez

March 30, 2015

July 21, 2015

Calvin Maurice Murphy

March 19, 2015

July 29, 2015

 

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Karl C. Colder, Special Agent in Charge for Drug Enforcement Administration’s (DEA) Washington Office, made the announcement after sentencing by Chief U.S. District Judge Rebecca Beach Smith.

This case was investigated by the DEA’s Washington Office with the assistance of the Chesapeake Police Department, and was part of the Organized Crime Drug Enforcement Task Forces (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. Assistant U.S. Attorney Darryl J. Mitchell 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-119.

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Defendant possessed loaded gun and demanded $40,000

NEWPORT NEWS, Va. – Harrison Nefale Branche, 36, of  Newport News, Va., was sentenced today to 117 months in prison, followed by five years of supervised release for armed bank robbery and use, carry and possession of a firearm during a crime of violence.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia and Charles E. Smith, Special Agent in Charge of the ATF Washington Field Office made the announcement after sentencing by U.S. District Judge Robert G. Doumar.

Blanche waived indictment and pled guilty to a criminal information on February 2, 2015. According to court documents, on September 11, 2014, Branche robbed the Virginia Educator’s Credit Union, located at 812 Main Street in Newport News.  While brandishing a loaded Hi-Point, semi-automatic pistol, he presented a note to the teller stating he had a gun and demanded $40,000.  The teller provided approximately $8,200 and Branche fled the scene. He then discarded his clothes in the storm drain on a public street. When officers encountered him after leaving the credit union he reached into his waistband to retrieve a firearm. Officers ordered him to drop the firearm and he threw it to the ground. The firearm, and approximately $7,800 in U.S. currency located in Branche’s pockets, were recovered.  He later admitted his involvement in the robbery and apologized to the bank teller.

This case was investigated by the ATF and the Newport News Police Department.  Special Assistant U.S. Attorneys Yvonne Garcia and Ivana Nizich from the Organized Crime and Gang Section of the Justice Department’s Criminal Section, prosecuted the case on behalf of the United States.

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. 4:14cr71.

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

ALEXANDRIA, Va. – A federal grand jury returned a 16-count indictment today against Wossen Assaye, 43, of Arlington, Virginia, charging Assaye with bank robbery, bank burglary, escape, kidnapping, assault, and related firearms offenses.

According to the indictment, beginning in October 2013 until March 2015, Assaye robbed various banks in Northern Virginia on five occasions, twice brandishing a firearm.  In a sixth instance, Assaye entered a bank with the intent to commit bank robbery and larceny. 

Assaye was charged by complaint on March 25, 2015, for a bank robbery offense and was subsequently arrested and detained.  While at a Virginia hospital for treatment, Assaye escaped federal custody.  During the course of his escape, Assaye brandished a firearm to assault two federal officers assigned to guarding him and kidnapped one of the officers.

The indictment also charges Assaye with unlawfully possessing a firearm after being convicted of eight violent felonies.

Assaye faces a mandatory minimum of 122 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; 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 City 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, William M. Sloan, and Special Assistant U.S. Attorney Cindy Chang 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.

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. – Robert Lee Foster, 65, formerly of Falls Church, Virginia, was indicted by a federal grand jury today on charges of wire fraud.

According to the indictment, from 2008 through May 2015, Foster, who is a former career staff member of the U.S. Senate Committee on Commerce, Science and Transportation, devised a scheme to fraudulently obtain money and property from at least three women.  The women are not named, but, according to the indictment, Foster targeted them due to their vulnerability—including their age, health, and marital and family situations—and used his status as a current or retired staff member of the United States Senate to gain their trust and confidence.  The indictment alleges that Foster made various false and fraudulent representations to the women in order to get them to send him money, approximately $500,000, which they did, and that Foster spent the money they sent him for his own personal use and benefit. 

Foster faces a maximum penalty of 20 years in prison if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Assistant Attorney General Leslie Caldwell of the Justice Department’s Criminal Division, made the announcement after the indictment was returned.

This case was investigated by the FBI’s Washington Field Office.  Assistant U.S. Attorney Jamar Walker and Trial Attorneys Kevin Driscoll and Peter Halpern of the Public Integrity Section in the Justice Department’s Criminal 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. 1:15cr148.

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.

RICHMOND, Va. – Justin Fox, 31, of Stafford, pleaded guilty today to Attempted Production of Child Pornography. 

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

Fox was indicted by a federal grand jury on March 18, 2015. He faces a maximum penalty of 30 years in prison and a mandatory-minimum term of 15 years in prison when sentenced on August 27, 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.

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

This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Heather L. Hart is prosecuting the case on behalf of the United States.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No 3:15-cr-47.

Ashburn Resident Did Not Report Over $720,000 Earned from Scheme

ALEXANDRIA, Va. – Charise Stone, 46, of Ashburn, Virginia, was convicted today by a federal jury on 13 charges related to mortgage fraud, passing fictitious financial instruments, and tax fraud.

Stone was indicted on April 15, 2014. According to court records and evidence at trial, Stone targeted distressed homeowners from 2007 to 2010 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, who owned a settlement company that closed every short sale transaction for Stone, pleaded guilty to wire-fraud conspiracy on May 27, 2014. At his and Stone’s direction, fraudulent HUD-1 settlement statements at the direction of Stone to facilitate the transactions. Marinay destroyed some of the incriminating documents after closings. Financial institutions suffered losses of at least $2.2 million from the scheme. Stone profited over $700,000 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.

Stone will be sentenced on Aug. 14, 2015, and faces a maximum penalty of 20 years in prison for each of the wire fraud and wire-fraud conspiracy charges, 30 years in prison for the charges of false statements to a bank, 25 years in prison for the fictitious obligation charges, three years for the charge of corruptly impeding the internal revenue laws, and one year for each count of willful failure to file a tax return.  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 Caroline D. Ciraolo, the Acting Assistant Attorney General for the Justice Department’s Tax Division; Andrew G. McCabe, Assistant Director in Charge of the FBI’S Washington Field Office; and Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation, made the announcement after the verdict was accepted by U.S. District Judge Claude M. Hilton.

This case was investigated by the FBI’s Washington Field Office and IRS-Criminal Investigation. 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.

Law Enforcement Found Defendant on Incest Social Network

 

ALEXANDRIA, Va. – William Andrew Clarke, 44, of Tappahannock, Virginia, was sentenced today to 120 months in prison, followed by a lifetime of supervised release for online coercion and enticement of a minor.

Clarke, who also is a resident of Reston, Virginia, was found guilty by a jury on Feb. 24, 2015. According to court documents and evidence presented at trial, Clarke created a profile page on a social networking website for people who were interested in engaging in incest or sharing their children with others who are interested in sexually abusing children.  Clarke was contacted through the website by an undercover agent with HSI. The agent pretended to be a father with two children, ages eight and nine.  Clarke described to the undercover agent how he was interested in sexually abusing the two children, and Clarke and the agent made arrangements to meet in Fairfax, Virginia.  Clarke traveled from Tappahannock to the designated meeting place, where he was taken into custody.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Clark E. Settles, Special Agent in Charge of the Washington, D.C. Field Office of Homeland Security Investigations (HSI), made the announcement after sentencing by U.S. District Judge Claude M. Hilton.

This case was investigated by the Department of Homeland Security, HSI. Special Assistant U.S. Attorney Scott A. Claffee 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. 1:14-cr-246.

ALEXANDRIA, Va. – Kaixiang Zhu, 44, of Bentonville, Arkansas, was convicted on Wednesday by a federal jury on charges of conspiracy to commit immigration fraud and immigration fraud, stemming from a 2011 attempt at unlawfully obtain a green card.

Zhu was indicted on June 14, 2012. According to court records and evidence presented at trial, Homeland Security Investigations conducted an undercover operation which offered green cards for sale in Northern Virginia hotels.  On Aug. 25, 2011, Zhu and others came to a hotel in Crystal City where they were told on videotape that the cards were being obtained unlawfully through a corrupt public official and if they wished to purchase a card they would be fingerprinted.  Zhu had been present in the United States without legal status for 10 years and agreed to be fingerprinted despite the warning that doing so was a crime.  A total of 24 individuals were charged in 2012.  Zhu was located and apprehended in Rogers, Arkansas, at the end of last year. 

Zhu faces a maximum penalty of 10 years in prison when sentenced on Aug. 14, 2015.  The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Clark E. Settles, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Washington, DC; and Maggie A. DeBoard, Chief of the Herndon Police Department, made the announcement after the verdict was accepted by U.S. District Judge T.S. Ellis, III.

This case was investigated by Homeland Security Investigations and the Herndon Police Department. Special Assistant U.S. Attorney Caroline Friedman and Assistant U.S. Attorney Ronald L. Walutes, Jr., prosecuted the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:12-cr-258.

NORFOLK, Va. – Allen Andre Brown, 36, of Portsmouth, pled guilty today to conspiracy to distribute narcotics.

Dana J. Boente, United States Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; and Karl C. Colder, Special Agent in Charge for Drug Enforcement Administration’s (DEA) Washington Office, made the announcement after the plea was accepted by U.S. District Judge Mark S. Davis.

Brown was charged with the narcotics conspiracy in a criminal information that was filed on April 27, 2015.  He faces a maximum penalty of life in prison when he is sentenced on September 2, 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.

According to the statement of facts filed with the plea agreement, Brown manufactured, distributed and possessed cocaine and heroin from approximately November of 2013 to November of 2014.  After an investigation into Brown’s involvement in the cocaine and heroin distribution throughout the City of Portsmouth, and a controlled purchase, a search warrant was executed at Brown’s residence.  During the execution of the warrant, Brown waived his Miranda rights, admitted his involvement in the conspiracy and directed officers to the recovery of heroin, cocaine, and a firearm from his bedroom.  Brown bought and sold in excess of 13 kilograms of cocaine and 478 grams of heroin, worth an estimated value of $555,850.

This case was investigated by the DEA Norfolk Resident Office with the assistance of the Portsmouth Police Department.  Assistant U.S. Attorney Joseph E. DePadilla 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-54.

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Petersburg Prison Guard Indicted for Smuggling Heroin, Marijuana, and Cigarettes to Inmates in Exchange for Bribes

 

RICHMOND, Va. – Jermaine Brown, 37, of Chesterfield, Virginia, was charged by a federal grand jury on Tuesday with conspiracy to commit bribery and bribery for his alleged role in a prison bribery scheme.

According to the indictment, from the Fall of 2010 until March 25, 2013, while employed as a federal correctional officer and recreational specialist at the Federal Correctional Institution-Medium, Petersburg, Virginia, Brown engaged in a conspiracy to smuggle heroin, marijuana, and cigarettes to multiple inmates within the prison in exchange for bribes.  The indictment charges that inmates would have friends or family outside of the prison wire transfer money to Brown’s co-conspirator, who would then pay Brown.  From December 2010 through March 2011, the indictment alleges, Brown received at least five wire transfers from inmates totaling $3,050 in exchange for contraband.

Brown faces a maximum penalty of 15 years in prison if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Adam S. Lee, Special Agent-In-Charge of the FBI’s Richmond Field Office; and Michael Tompkins, Special Agent-In-Charge, Department of Justice, Office of the Inspector General, made the announcement after Brown’s initial appearance before U.S. Magistrate Judge David J. Novak.

This case was investigated by Department of Justice-Office of Inspector General and the FBI’s Richmond Field Office. Assistant U.S. Attorney Erik S. Siebert 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. 3:15CR93.

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.

NORFOLK, Va. – Linda M. Avila, 50, of Frankford, DE, was sentenced today to 144 months in prison, followed by 3 years of supervised release for conspiring to obtain payment for false claims and mail fraud.

Dana J. Boente, United States Attorney for the Eastern District of Virginia; Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigations; and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C.; made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.

Avila pled guilty on November 17, 2014.  According to court documents, Linda Avila and unindicted co-conspirators devised a scheme to file false income tax returns using forms obtained from illegal aliens on the Eastern Shore of Virginia and elsewhere.   Avila altered the W-2 forms by using white out to cover up the names, social security numbers, and addresses and then wrote in other names and addresses and filed the fraudulent returns.  According to court documents, she also created fake W-2 forms and notarized fake identity documents to facilitate her fraudulent filings.  The addresses listed on the forms were for post office boxes and residential addresses to which she or a co-conspirator had access.  Once the refund checks arrived, she provided fake identification documents to co-conspirators so they could cash the checks.   An arrest warrant and search warrant were executed at her home in Delaware and agents seized approximately 17 boxes of fraudulent tax records.  Templates for fraudulent W-2 forms and identification documents were also found on her computer.  The records included copies of approximately 1,754 tax returns filed between 2008 and 2014 for tax years 2004 through 2013.  The total loss to the IRS based on the fraudulent returns is approximately $7.2 million.

This case was investigated by the Internal Revenue Service and Homeland Security Investigations.  Assistant United States Attorney Randy Stoker is prosecuted the case on behalf of the United States.   

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-108.
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ALEXANDRIA, Va. – United Parcel Service Inc. (UPS) has agreed to pay $25 million to resolve allegations that it submitted false claims to the federal government in connection with its delivery of Next Day Air overnight packages, the Justice Department announced today.  UPS is a package delivery company based in Atlanta.

UPS provides delivery services to hundreds of federal agencies through contracts with the U.S. General Services Administration (GSA) and U.S. Transportation Command, which provides support to Department of Defense agencies.  Under these contracts, UPS guaranteed delivery of packages by certain specified times the following day.  The settlement announced today resolves allegations that from 2004 to 2014, UPS engaged in practices that concealed its failure to comply with its delivery guarantees, thereby depriving federal customers of the ability to request refunds for the late delivery of packages.  In particular, the government alleged that UPS knowingly recorded inaccurate delivery times on packages to make it appear that the packages were delivered on time, applied inapplicable “exception codes” to excuse late delivery  (such as “security delay,” “customer not in,” or “business closed”), and provided inaccurate “on-time” performance data under the federal contracts.

“This conduct affected numerous federal agencies,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “We place high importance on the integrity of companies that provide services to the government. Combating all manner of fraud on the government is a high priority here in the Eastern District of Virginia.”

“Protecting the federal procurement process from false claims is central to the mission of the Department of Justice,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division.  “We will continue to ensure that when federal monies are used to purchase commercial services the government receives the prices and services to which it is entitled.”

“The United States should get what it pays for, nothing less,” said Acting Inspector General Robert C. Erickson of the GSA.

The civil settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the government’s recovery.  The civil lawsuit was filed in the Eastern District of Virginia by Robert K. Fulk, a former employee of UPS, who will receive $3.75 million.

This resolution in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia, the GSA Office of Inspector General (OIG), the Federal Deposit Insurance Corporation OIG, the Defense Criminal Investigative Service, the Treasury Inspector General for Tax Administration, the Department of Treasury OIG, and with assistance from the Department of Veterans Affairs OIG.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Benjamin C. Mizer, Principal Deputy Assistant Attorney General of the Justice Department’s Civil Division; Robert C. Erickson, Jr., Acting Inspector General, General Services Administration (GSA); and Fred W. Gibson, Acting Inspector General of the Federal Deposit Insurance Corporation (FDIC), Robert E. Craig, Special Agent in Charge, Defense Criminal Investigative Service, made the announcement after the case was unsealed by the U.S. District Court for the Eastern District of Virginia.

The matter was investigated by Assistant U.S. Attorneys Peter S. Hyun and Kevin Mikolashek of the Eastern District of Virginia.

The lawsuit is captioned United States ex rel. Fulk v. United Parcel Service, Inc., et al., No. 1:11cv890 (E.D. Va.).  The claims resolved by this settlement are allegations only, and there has been no determination of liability.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:11cv890.

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NEWPORT NEWS, Va. – Edward David Herbert, III, 34, of Hampton, Virginia, pleaded guilty today to charges of Receiving Child Pornography and Obstruction of Justice - Concealing Evidence.

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

Herbert, III, was indicted by a federal grand jury on March 9, 2015, in an eleven count indictment. Herbert faces a maximum penalty of 40 years in prison when sentenced. 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.

In a statement of facts filed with the plea agreement, agents were able to determine that someone using a particular internet protocol address was sharing files.  That online activity was then linked to Herbert’s residence.  Agents executed a search warrant on Herbert’s home in Hampton, Virginia on December 4, 2014. However, Herbert had just moved to the Richmond, Virginia area and had taken his computer equipment with him.  Herbert’s wife, still at the home in Hampton gave the agents written consent to search the new residence in the Richmond area. The agents travelled to his new address and found that his computer equipment was no longer in the residence. Herbert had been alerted to the fact that the FBI was searching for his computer and gave his computer to a relative to hide.  In January 2015, that relative and their attorney turned the computer over to the FBI.  The hard drive contained more than 14,000 images of child pornography

This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Lisa R. McKeel is prosecuting the case on behalf of the United States.

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. 4:14cr68.
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NORFOLK, Va. – Ayanna N. James, also known as Ayanna Wilson James and Ayanna N. Wilson, 39, of Virginia Beach, Va. pleaded guilty today to mail fraud and unlawful monetary transactions.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office; Thomas J. Kelly, Special Agent in Charge, IRS-Criminal Investigations, Washington, D.C. Field Office, and Gary Barksdale, Inspector in Charge of the Washington Division of the United States Postal Inspection Service, made the announcement after the plea was accepted by U.S. Magistrate Judge Douglas E. Miller.

James was charged in a criminal information that was filed on May 6, 2015.  James faces a maximum penalty of 20 years in prison for mail fraud and a maximum penalty of 10 years in prison for unlawful monetary transactions the Court sentences her on August 11, 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.

According to a statement of facts filed with the plea agreement, James was the President and CEO of Wilson Capital Group, Inc. which was a private equity firm that she claimed controlled billions of dollars in investor participation.  Claiming that she controlled a legitimate company, James, and other known conspirators, solicited funds from clients by promising to secure capital and other financing through purported “Standby Letters of Credit” and other fraudulent means.  James, however, immediately converted the funds entrusted to her company to her own personal use to fund her extravagant lifestyle.  For example, James used $34,000 of fraudulent proceeds to purchase season tickets to the Orlando Magic, to travel overseas, for living expenses, and to purchase a 2007 Bentley automobile.

This case was investigated by the Tidewater Complex Financial Crimes Task Force.  Members of the Task Force include the Federal Bureau of Investigation, the Internal Revenue Service, and the Postal Inspection Service.  Assistant U.S. Attorney Melissa E. O’Boyle is prosecuting the case on behalf of the United States.

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-55.

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ALEXANDRIA, Va. – Brandon Scott Hoffman, 37, of Manassas, Virginia, was sentenced yesterday to 15 months in prison followed by three years of supervised release for stealing over $370,000 from his former employer.  Hoffman was also ordered to pay $271,903.36 in restitution and forfeit his criminal proceeds.

Hoffman pleaded guilty on February 6, 2015.  According to court documents, from 2004 through 2014, Hoffman worked as a medical biller and officer manager for a medical practice in Fairfax, Virginia.  Beginning in 2009 and continuing through February 2014, Hoffman intercepted 439 checks from health insurance companies made payable to the medical practice, forged the doctor’s signature or signed his own signature, and deposited the checks into his own personal bank account.  The total amount of money the defendant stole from the medical practice was $370,836.23.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge T.S. Ellis, III.

This case was investigated by the FBI’s Washington Field Office.  Assistant U.S. Attorney Chad R. Golder and Kimberly R. Pedersen 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-034.

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ALEXANDRIA, Va. – Zheng Zhi Han, 30, of Putian, Fujian Province, People’s Republic of China, was indicted yesterday by a federal grand jury on charges of copyright infringement and trafficking in products designed to circumvent security protections of copyrighted works.

According to the indictment, Zheng Zhi Han reproduced and distributed thousands of Microsoft and Adobe copyrighted products through numerous websites, such as www.trustsofts.com.  He also distributed counterfeit product keys/serial numbers for Adobe products that were modified to bypass security features that control access to Adobe software in violation of the Digital Millennium Copyright Act.

Zheng Zhi Han faces a maximum penalty of five years in prison if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

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.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the indictment was returned.

This case was investigated by the FBI’s Washington Field Office.  Assistant U.S. Attorney Tracy Doherty-McCormick 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-141.

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RICHMOND, Va. – Ofori Awauh, 22, of Burke, Virginia; and Dane Ellis, 35, of Brooklyn, New York, were convicted yesterday by a federal jury on charges of Access Device Fraud, Conspiracy to Commit Access Device Fraud, and Aggravated Identity Theft.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Virginia Attorney General; and Douglas F. Mease, Special Agent in Charge of the United States Secret Service, Richmond Field Office, made the announcement after the verdict was accepted by U.S. District Judge John A. Gibney, Jr.

Awuah faces maximum penalties of 10 years’ incarceration on two access device fraud counts, 15 years’ incarceration on a third access device fraud count, 7 years’ incarceration on the conspiracy count, and a mandatory consecutive 2 years on the aggravated identity theft count.  Ellis faces maximum penalties of 7 years’ incarceration on a conspiracy count and 15 years’ incarceration on an access device fraud count.  They are both scheduled for sentencing on August 20, 2015.  The maximum statutory sentences are prescribed by Congress and are provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

Awuah, Ellis, and two other co-conspirators, Keyana Barnes and Michael Bonsu, were indicted on September 2, 2014.

According to evidence presented at trial, the group would make on-line purchases from various stores using stolen credit card numbers and the identities of real individuals who were not part of the scheme.  Because they often would have to present a credit card bearing the name of the person in whose name the items were purchased, the group would rub down the embossed numbers on “My Vanilla” commercial gift cards, and then use an embosser to place the stolen credit card numbers on those cards, along with the name of the person whose credit card number the group had stolen.  

As part of the operation, Awuah stole a Virginia identification card belonging to an acquaintance and used it in an attempt to pick up consumer electronics purchased with a fraudulently obtained credit card number at a Fairfax County WalMart on October 25, 2013.

On January 14, 2014, Awuah, Ellis, Barnes, and Bonsu were arrested after they picked up consumer electronics at Best Buy stores in Stafford County and Fredericksburg that had been purchased on-line with fraudulently obtained credit card numbers.  At the time of their arrest, they had with them an embosser, My Vanilla gift cards and the names of identity theft victims.

On May 4, 2015, Barnes entered pleas of guilty to access device fraud and aggravated identity theft charges.  Her sentencing is scheduled for August 7, 2015.

On May 7, 2014, Bonsu entered a plea of guilty to an access device fraud charge.  His sentencing is scheduled for July 29, 2015.

This case was investigated by the Fredericksburg Police Department, Stafford County Sheriff’s Office, Fairfax County Police Department, and the United States Secret Service as part of the Metro-Richmond Identity Theft Task Force.  Other member agencies of the Task Force include: the Internal Revenue Service’s Criminal Investigation Division, the United States Postal Inspection Service, the Bureau of Diplomatic Security, the U.S. Department of State, Henrico County Police Department, Richmond Police Department, 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.  Special Assistant U.S. Attorney Ann M. Reardon and Assistant U.S. Attorney Michael C. Moore are prosecuting the case on behalf of the United States.

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. 3:14cr121.

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ALEXANDRIA, Va. – Tony Chandler, 68, of Severn, Maryland, and Marvin Hulsey, 52, of Stafford, Virginia, were indicted by a federal grand jury today on charges of conspiracy to commit wire fraud and wire fraud.  Chandler also faces charges for conflicts of interest in the same indictment.

According to the indictment, Chandler was employed by the U.S. Department of State with duties as a contracting officer’s representative in the Bureau of Overseas Buildings Operations.  In that capacity, Chandler was responsible for oversight of the contractor that employed Hulsey as a program manager. Apart from his government employment, Chandler was an authorized distributor of nutritional supplements for a multi-level marketing company.  From 2008 and continuing into 2010, Chandler earned a commission of sales for nutritional supplements that were sold to employees under Hulsey’s supervision.  The employees were reimbursed by Hulsey’s employer for the cost of the nutritional supplements, after which Hulsey, through agreement with Chandler, caused fake invoices to be created and submitted to the U.S. Department of State.  Knowing that the cost of nutritional supplements was not an allowable cost, Chandler approved many of the fake invoices in his official capacity, causing the U.S. Department of State to make fraudulent payments back to Hulsey’s employer. Chandler earned a commission from the multi-level marketing company for each sale of nutritional supplements.

In a related case, on April 23, 2015, Gene Goodsell, the former U.S. Department of State supervisor of Chandler, pleaded guilty to a conflict of interest.  According to documents filed in that case, Goodsell, who sponsored Chandler as an authorized distributor of nutritional supplements and earned commissions on each sale made by Chandler, became aware that Chandler sold nutritional supplements that were billed to the U.S. Department of State, and despite then knowing of his own personal financial interest in the contract, Goodsell continued to make official decisions concerning the contract.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Steve A. Linick, Inspector General for the U.S. Department of State and Broadcasting Board of Governors; and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the grand jury returned the indictment.

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

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

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-137.  Related court documents and information concerning Goodsell may be found on PACER by searching for Case No. 1:15-mj-210.

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ALEXANDRIA, VA – Sand 9, Inc., of Cambridge, Massachusetts, has agreed to pay $625,000 to resolve allegations under the False Claims Act that it misrepresented its accounting and timekeeping systems to the National Science Foundation (NSF), based in Arlington, Virginia, in the award and performance of two Small Business Innovation Research (SBIR) grants.

Sand 9 obtained from the NSF the SBIR Phase II grants in February 2009 and March 2011 to support research into micro-electromechanical system timing products for use in wireless and wired communications systems.

The United States alleged that Sand 9 misrepresented its accounting and timekeeping systems to obtain the grants, and failed to maintain complete timekeeping records for its employees while receiving grant funding for labor.

The United States further contended that Sand 9’s progress reports certified compliance with the grant terms, and that certain reports also certified that all of the funds committed to the grant had been expended as designated in the grant budget, even though Sand 9 failed to maintain its accounting system in a manner that tracked expenditures separately by grant or according to categories of the approved grant budget.  These progress reports caused the NSF to release incremental payments to Sand 9.

The civil claims settled by Sand 9 and the United States are allegations only; there has been no determination of civil liability.

The case was investigated by Assistant U.S. Attorney Gerard Mene and Special Assistant U.S. Attorney Josh Cavinato of the U.S. Attorney’s Office for the Eastern District of Virginia, along with Investigative Attorney Ginna Ingram and Special Agent Michael Pritchard of the NSF’s Office of Inspector General.  Assistant U.S. Attorney Monika Moore and Forensic Auditor Ron Fiorillo of the U.S. Attorney’s Office for the Eastern District of Virginia assisted in the investigation.

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.

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