Eastern District of Virginia

RICHMOND, Va. – Dayton M. Waddy, 34, of Lancaster County, Virginia, pleaded guilty today to a charge of possession with intent to distribute 28 grams or more of cocaine base, in violation of Title 18, United States Code, Sections 841(a)(1) and (b)(1)(B)(iii).

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 Field Division, made the announcement after the plea was accepted by U.S. District Judge John A. Gibney, Jr.

Waddy was indicted by a federal grand jury on January 20, 2015, and faces a maximum penalty of forty years and a minimum of five years in prison when sentenced on June 1, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

According to a statement of facts signed by Waddy and filed with his plea agreement, on October 6, 2014, a Lancaster County Sheriff’s Deputy pursued a vehicle driven by Waddy after Waddy attempted to elude the Deputy at a high rate of speed.  Waddy ultimately crashed the vehicle in a ditch and fled on foot.  The Deputy approached the vehicle and found on the front passenger seat a wallet containing Waddy’s identification.  Lancaster County Sheriff’s Department deputies subsequently searched the vehicle pursuant to a search warrant and recovered several personal documents belonging to Waddy; approximately 4.5 ounces of crack cocaine; a scale, spoon, and knife, all having cocaine residue on them; and $9,000 in cash.  Waddy was on federal supervised release for a previous drug conviction at the time of the offense. 

This case was investigated by the DEA and the Lancaster County Sheriff’s Department. Assistant U.S. Attorney Stephen E. Anthony is prosecuting the case on behalf of the United States.

NORFOLK, Va. – Daniel Chase Harris, 31, of Virginia Beach, Virginia, was convicted today by a federal jury after a 12-day trial on 31 counts 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.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Clark Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C.; Randy C. Krantz, Commonwealth’s Attorney for Bedford County; and Bedford County Sheriff Mike Brown of the Southern Virginia Internet Crimes Against Children Taskforce, made the announcement after the verdict was accepted by U.S. District Judge Mark S. Davis.

Harris was indicted by a federal grand jury on a superseding indictment on September 17, 2014.  According to court records and the evidence at trial, Harris was a Lieutenant in the U.S. Navy and a Navy Top Gun instructor stationed at Naval Air Station Oceana and 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. 

Harris faces a maximum penalty of life in prison when sentenced on July 13, 2015.  The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

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.

ALEXANDRIA, Va. – Derron McRae Simon, 45, of Arlington, Virginia, was sentenced today to 180 months in prison, followed by six years of supervised release for his role in an oxycodone conspiracy. 

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 Leonie M. Brinkema.

Simon, a medical doctor, pleaded guilty on December 18, 2014. In a statement of facts filed with the plea agreement, Simon admitted that during the course of the conspiracy, he wrote and sold numerous prescriptions for oxycodone and other controlled substances, and knew that these prescriptions were not for a legitimate medical purpose and were beyond the bounds of medical practice. Simon was responsible for the distribution of at least 11,000 oxycodone 30 mg pills.

According to the statement of facts filed with Simon’s plea agreement, beginning in February 2013 and continuing until around August of 2014, Simon and others conspired to distribute oxycodone throughout northern Virginia. Simon wrote and sold prescriptions for oxycodone and other controlled substances, despite knowing that the individuals in whose names the prescriptions were written were abusing and selling the drugs. Simon never met many of the people for whom he wrote oxycodone prescriptions, as these individuals were not Simon’s medical patients. Over the course of the conspiracy, one of Simon’s co-conspirators paid Simon approximately $500 to $1,000 per fraudulent oxycodone prescription. Simon also directed a co-conspirator to create fraudulent patient history forms and medical records to make it appear that these individuals were actually legitimate patients.

Simon’s medical license was previously suspended on November 24, 2008, for 90 days and he was placed on probation by the Virginia Board of Medicine at the conclusion of this temporary suspension.  Simon’s license to practice medicine was suspended again by the Virginia Board of Medicine on July 11, 2014. On July 28, 2014, Simon signed a consent order with the Virginia Board of Medicine and voluntarily and permanently surrendered his license to practice medicine and perform surgery in Virginia. The consent order states Simon will not be eligible for reinstatement of his license at any future date.

This case was investigated by the FBI’s Washington Field Office. Special Assistant U.S. Attorneys Adam Ptashkin, Jennifer A. Clarke, and Jason M. Scheff 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-300.

NORFOLK, Va. – Lisa Marie Barrett, age 50, of Norfolk, and Jaqueline J. Harris, age 34, of Portsmouth, were both sentenced yesterday for their roles in a massive Medicaid fraud conspiracy.  Ms. Barrett was sentenced to serve a term of 96 months in prison, followed by a three-year term of supervised release, and was ordered to pay $126,126 in restitution to the Virginia Department of Medical Assistance Services.  Ms. Harris was sentenced to serve 60 months imprisonment, followed by three years of supervised release, and ordered to pay $237,570 in restitution. 

Dana J. Boente, United States Attorney for the Eastern District of Virginia; Mark R. Herring, Virginia Attorney General; John S. Adams, Special Agent in Charge of the Federal Bureau of Investigations’ Norfolk Field Office; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C. Field Office; Thomas J. Kelley, Special Agent in Charge, Internal Revenue Service-Criminal Investigations, Washington, D.C. Field Office; and Steven Anderson, Special Agent in Charge for the Washington Regional Office of the U.S. Department of Labor’s Office of Inspector General-Office of Labor Racketeering and Fraud Investigations, made the announcement after sentencing by United States Chief District Judge Rebecca Beach Smith.

Barrett pleaded guilty on December 1, 2014, to one charge each of health care fraud, aggravated identity theft, and perjury.  According to court documents, Barrett worked for Progressive Counseling Services, LLC, as a qualified mental health professional responsible for providing mental health support services to Medicaid-eligible clients who purportedly suffered from severe psychiatric limitations.  In reality, not only was Barrett not qualified to provide such services, she signed false progress notes in order to support reimbursement claims to Medicaid.  Barrett signed progress notes that listed dates, times, and locations that conflicted with other progress notes, that consisted entirely of material copied verbatim from articles available on the Internet, and that contained descriptions of counseling sessions that were identical to the descriptions provided in other progress notes submitted by other counselors.  Additionally, Barrett signed multiple notes that detailed counseling sessions that purportedly occurred while she was working as a parking attendant at a City of Norfolk parking garage.  In total, Barrett personally signed 639 of these progress notes causing Medicaid to reimburse Progressive approximately $126,126.

Harris pleaded guilty on December 2, 2014, to one charge of health care fraud and one charge of perjury.   According to court documents Harris was also not qualified to provide mental health support services, and signed fraudulent progress notes used in support of Medicaid billing.  Harris personally signed 1,305 false and fraudulent progress notes, causing Medicaid to reimburse Progressive $237,570.  The overwhelming majority of progress notes detailed meetings that never occurred.  On the few instances when Harris actually met with clients, she merely drove them to appointments and on errands, provided transportation to their family members, and had them sign blank time sheets, which were then used to back up her false and fraudulent progress notes. 

The total amount Medicaid overbilled Progressive as a result of all of its activities was approximately $2,483,752.00, according to the court documents.

In addition to their roles in Progressive’s Medicaid fraud conspiracy, Barrett and Harris also testified falsely under oath before the federal grand jury investigating Progressive’s Medicaid fraud conspiracy.
 
This case was investigated by the FBI’s Norfolk Field Office, the Medicaid Fraud Control Unit of the Virginia Attorney General’s Office, Homeland Security Investigations’ Norfolk Field Office, U.S. Department of Labor’s Office of Inspector General-Office of Labor Racketeering and Fraud Investigations, and the Internal Revenue Service, Criminal Investigations Division.  Assistant U.S. Attorneys Joseph L. Kosky and V. Kathleen Dougherty are prosecuting the case for 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-137.

NORFOLK, Va. – German Dario Brand Piedrahita, 49, of Medellin, Colombia, was sentenced today to 144 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.
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 the plea was accepted by U.S. District Judge Raymond A. Jackson.
Piedrahita pleaded guilty on September, 23, 2014, to conspiracy to manufacture and distribute cocaine for the purpose of importation into the United States.  According to court documents, Piedrahita, an associate of the Bacrim Los Urabeños, admitted to his role 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, Brand Piedrahita was involved in purchasing cocaine base, producing cocaine, transporting loads of cocaine to the Colombian coast, and coordinating payment for various loads of cocaine.  Brand Piedrahita also assisted in the construction of a cocaine production laboratory in the jungles of Colombia.  All told, Brand Piedrahita was involved in the production and shipment of hundreds of kilograms of cocaine throughout the life of the conspiracy and was held accountable today for the production and distribution of 325 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.

ALEXANDRIA, Va. – Nazanien Ebrahimi, a/k/a “Nancy” Ebrahimi, 32, of Fairfax County, Virginia, was indicted by a federal grand jury on February 26, 2015, on charges of wire fraud, health care fraud, aggravated identity theft, and making false statements relating to health care matters.   

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 Ebrahimi’s initial appearance today in front of U.S. Magistrate Judge John F. Anderson.

If convicted, Ebrahimi faces a maximum penalty of 20 years in prison on each wire fraud count, 10 years in prison on each health care fraud count, a mandatory two-year consecutive sentence for each of the aggravated identity theft counts, and five years in prison on each count of making a false claim regarding health care matters. 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. Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.

According to allegations in the indictment, Ebrahimi, a law school graduate, owned and controlled Dental Arts Group, which purported to provide administrative and consulting services to dental practices. Through her control of Dental Arts Group, Ebrahimi allegedly carried out a scheme to steal the identities of various individuals, including other dentists, and use their identities without their knowledge to open merchant accounts with consumer dental financing programs, including CareCredit. To gain access to these programs, Ebrahimi submitted false and misleading enrollment applications.    

Once the fraudulent CareCredit merchant accounts were opened, Ebrahimi allegedly billed patients for charges that were inflated, never authorized, or never approved. For example, under one CareCredit merchant account that Ebrahimi opened without the victim’s knowledge, patients disputed nearly 50 percent of the total amount Ebrahimi charged for purported dental services. At the time, the dispute rate for all other CareCredit dental merchants was less than 1 percent.  Furthermore, Ebrahimi allegedly submitted false CareCredit charge slips that purported to bear the signatures of patients. 

The indictment further alleges that Ebrahimi defrauded Humana, a private health insurer, by submitting false and inflated insurance claims for dental services that were never rendered.  Ebrahimi allegedly deposited the profits earned from her scheme in various bank accounts that she controlled. Finally, the indictment alleges that Ebrahimi manufactured, or attempted to manufacture, and destroy various patient records. 

This case is being investigated by the FBI’s Washington Field Office. Special Assistant U.S. Attorney Kevin Lowell and Assistant U.S. Attorney Uzo Asonye 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-57.

ALEXANDRIA, Va. – Danny Zhao, 36, of Ashburn, Virginia, pleaded guilty today to conspiracy to commit bank fraud.

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 plea was accepted by U.S. District Judge Leonie M. Brinkema.

Zhao faces a maximum period of five years of imprisonment when he is sentenced on May 15, 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 along with the plea agreement, Zhao acted as a realtor in fraudulent real estate short sale transactions involving Legacy Investment Group, a company owned by his wife.  Zhao fraudulently induced mortgage lenders to approve sales of property for amounts less than what was owed.  In order to do so, Zhao forged the signatures and initials of homeowners in mortgage documents.  Zhao also sent false hardship letters and financial statements to lenders.  Moreover, Zhao failed to disclose material information about his relationship to the owner of Legacy and made misleading representations that the short sales would be arm’s length transactions. 

Zhao participated in six fraudulent short sale transactions resulting in mortgage lenders losses of approximately $924,529. Zhao and his family profited approximately $200,000.

This case was investigated by the FBI’s Washington Field Office.  Assistant United States Attorney Uzo Asonye is prosecuting the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15CR51.

NEWPORT NEWS, Va. – Danish Syed, 19, of Smithfield, Va., pleaded guilty today to Conspiracy to Commit Money Laundering and Harboring a Fugitive.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service Criminal Investigation’s Washington, D.C., Field Office; and John S. Adams, Special Agent in Charge of the FBI’s, Norfolk Field Office, made the announcement after the plea was accepted by U.S. District Judge Raymond A. Jackson.

Danish Syed was indicted by a federal grand jury on December 24, 2014. Syed faces a maximum penalty of twenty years in prison for conspiracy to commit money laundering and ten years in prison for harboring a fugitive. 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 his plea agreement, Danish Syed is the half-brother of Mehdi Syed, who was charged, in March, 2014, with an account take over and identity theft scheme. As alleged in the indictment, Mehdi, under the guise of a legitimate company sought to obtain thousands of dollars from customers of SunTrust Bank by fraudulently transferring funds from individual accounts to nominee checking accounts established by Mehdi in the names of aliases and purported business entities.  In April, 2014, Mehdi was located in North Carolina and agreed to surrender to authorities. Mehdi relocated his family from North Carolina to Smithfield, Virginia; the home of his mother, his step-father and his half-brother, Danish. After Mehdi failed to turn himself in, authorities interviewed his family members and they each claimed they did not know his whereabouts. The next day Mehdi’s mother, “NS,” contacted authorities and admitted they had lied to the FBI and that they did know Mehdi’s location as Danish Syed drove Mehdi to a hotel on the Eastern Shore of Virginia.  Mehdi was arrested and on May 28, 2014 was released on bond and electronic monitoring. In June, 2014, Mehdi opened several bank accounts with FirstView in the names of aliases. On July 9, 2014 Mehdi’s electronic monitoring bracelet was located in a wooded area off of Mercury Blvd. in Hampton, Virginia, and on the same day a warrant was issued for his arrest.

One of the customers whose account was fraudulently accessed was “DS.”  Beginning in August, 2014 Mehdi caused “DS’s” account to be accessed without his permission. Through third party payroll services thousands of dollars were transferred out of “DS’s” account and into the FirstView accounts Mehdi had created while on pre-trial release. FirstView closed several of the accounts they suspected were opened on suspicion of fraud and the funds were mailed to the address on record; Danish Syed’s home in Smithfield. Thereafter Danish Syed communicated with Mehdi Syed about the funds.  On or about October 14, 2014 through October 16, 2014, Danish Syed deposited the FirstView checks,  which represented fraudulent funds, into an account accessible by Mehdi. From October 15, 2014 through October 30, 2014 Mehdi withdrew nearly all of the funds that Danish had deposited into the account from ATM machines located in Lahore, Pakistan.

This case was investigated by IRS-CI and FBI. Assistant U.S. Attorneys Brian J. Samuels and Kaitlin 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. 4:14CR72.

ALEXANDRIA, VA – Dawn Hamilton, 48, of Brownsville, Maryland, the chief executive officer and “figurehead” of a now-defunct Virginia-based security contracting firm, Security Assistance Corporation (“SAC”), has agreed to pay $300,000 to settle civil claims arising from a fraudulent scheme to establish SAC as a front company, which obtained more than $31 million in contract payments intended for disadvantaged small businesses through the Small Business Administration’s (SBA) Section 8(a) program.

As a result of her participation in the scheme, Hamilton pleaded guilty to major government fraud in U.S. v. Hamilton, which can be found on PACER by searching for case number 1:13cr75. Hamilton was sentenced to 48 months in prison and three years of supervised release. She was also ordered to forfeit approximately $1.2 million and pay a fine of $1 million.

According to court documents, in or about 2004, SAC received certification as 8(a) contractor. Prior to obtaining that status, a co-conspirator of the scheme, Keith Hedman, 53, of Arlington, Virginia, the owner of a then 8(a)-ineligible company Protection Strategies, Inc. (“PSI”), agreed with Hamilton to use her as a figurehead owner of SAC based on her Portuguese heritage and history of social disadvantage to obtain 8(a) contracting preferences. The Section 8(a) program allows qualified small businesses to receive sole-source and competitive-bid contracts set aside for minority-owned and disadvantaged small businesses.

According to court documents, to deceive the SBA, Hedman, Hamilton, and other co-conspirators from PSI falsely claimed that Hamilton formed and founded SAC and that she was the only member of SAC’s management, even though SAC was managed by Hedman and PSI senior leadership in violation of 8(a) rules and regulations. After SAC fraudulently obtained 8(a) status in 2004, it netted more than $31 million in fraudulently obtained contract payments in the ensuing years.

As part of the civil settlement, Hamilton, on behalf of herself and the now-defunct SAC, has agreed to pay $300,000 to resolve allegations under the False Claims Act, and other related statutory and common law remedies arising from the fraudulent scheme. The civil claims settled by Hamilton and SAC are allegations only; there has been no determination of civil liability.

The resolutions obtained in this matter were the result of parallel investigations by the Civil and Criminal Divisions of the U.S. Attorney’s Office for the Eastern District of Virginia, and the Civil Division of the Department of Justice. The civil matter was investigated by Assistant U.S. Attorney Peter Hyun and DOJ Trial Attorney Allison Cendali. The criminal case was prosecuted by Assistant U.S. Attorneys Chad Golder and Ryan Faulconer, a former Trial Attorney for the Criminal Division’s Fraud Section.

This case was investigated by NASA Office of the Inspector General (OIG), the SBA -OIG, DCIS-OIG, GSA-OIG, and DHS-OIG, with assistance from the Defense Contract Audit Agency.

NEWPORT NEWS, Va. – Shakeen D. Northcutt, and his twin brother, Rakeen D. Northcutt, both 22, from Newport News, Va., were sentenced today for their individual roles in a conspiracy to commit robberies.  Shakeen Northcutt was sentenced to 78 months in prison and Rakeen Northcutt was sentenced to 97 months in prison. 

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

The Northcutt brothers were convicted on October 3, 2014, following a four day jury trial. According to court documents, the brothers each committed a separate robbery along with other individuals.  During the first robbery, on October 20, 2013, Shakeen Northcutt entered the Osming Buffett in Hampton, through an open back door, fired a shot, and left with $250.00.  In the second robbery, on October 28, 2013, Rakeen Northcutt entered the Buckroe Beach Market, also in Hampton, and confronted the owner who was working behind the counter. He fired two shots before running out the door with no proceeds. The victim was not injured.

This case was investigated by the Bureau of Alcohol, Tobacco and Firearms. Assistant U.S. Attorney Robert E. Bradenham, II 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. 4:14cr38.

ALEXANDRIA, Va. – On the eve of trial, Bryan Christopher Samuel, 38, of Manassas, Virginia, pleaded guilty last night to conspiracy to distribute 700 grams or more of heroin and possession of a firearm in furtherance of a drug trafficking crime.

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 plea was accepted by U.S. District Judge T.S. Ellis, III.

Samuel was most recently indicted by a federal grand jury on December 16, 2014.  He faces a mandatory minimum penalty of 15 years in prison and a maximum penalty of life 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 along with the plea agreement, Samuel obtained distribution quantities of heroin from various sources of supply around the D.C. metro area as well as the I-95 corridor.  Typically, Samuel and his co-conspirators would repackage the larger quantities of heroin purchased into individual user amounts, which they would then sell throughout Prince William County, Virginia.  In addition, Samuel possessed a firearm, which he used for protection once he began buying and selling larger quantities of narcotics as well as during the robbery of a perceived rival drug dealer.

This case was investigated by the FBI’s Washington Field Office with assistance from the Manassas City Police Department.  Special Assistant United States Attorneys John Taddei and Elizabeth Eriksen, and Assistant U.S. Attorney Zach Terwilliger are prosecuting the case.

RICHMOND, Va. – The former First Lady of Virginia, Maureen G. McDonnell, 60, of Glen Allen, Virginia, was sentenced today to one year and one day in prison, 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.

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; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; Richard Weber, Chief, IRS Criminal Investigation (IRS-CI); and Colonel W. Steven Flaherty, Virginia State Police Superintendent, made the announcement after sentencing by Senior U.S. District Judge James R. Spencer.

Former Virginia Governor Robert McDonnell and his wife, Maureen McDonnell, were convicted on Sept. 4, 2014, following a jury trial of one count of conspiracy to commit honest-services wire fraud and one count of conspiracy to obtain property under color of official right. Maureen McDonnell also was convicted of two counts of honest-services wire fraud and four counts of obtaining property under color of official right, while Robert McDonnell was convicted of three counts of honest-services wire fraud and six counts of obtaining property under color of official right. In total, Maureen McDonnell was convicted of eight of 13 counts and Robert McDonnell was convicted of 11 of 13 counts.

According to the evidence presented at trial, from April 2011 through March 2013, the McDonnell’s participated in a scheme to use the former governor’s official position to enrich themselves and their family members by soliciting and obtaining payments, loans, gifts and other things of value from Star Scientific and Jonnie R. Williams Sr. The McDonnell’s obtained these items in exchange for the former governor performing official actions to legitimize, promote and obtain research studies for Star’s products, including the dietary supplement Anatabloc.

According to evidence presented at trial, the McDonnell’s obtained from Williams more than $170,000 in direct payments as gifts and loans, thousands of dollars in golf outings, and numerous items. As part of the scheme, Robert McDonnell arranged meetings for Williams with Virginia government officials, hosted and attended events at the Governor’s Mansion designed to encourage Virginia university researchers to initiate studies of Star’s products and to promote Star’s products to doctors, contacted other Virginia government officials to encourage Virginia state research universities to initiate studies of Star’s products, and promoted Star’s products and facilitated its relationships with Virginia government officials.

The evidence further showed that the McDonnell’s attempted to conceal the things of value received from Williams and Star to hide the nature and scope of their dealings with Williams from the citizens of Virginia by, for example, routing gifts and loans through family members and corporate entities controlled by the former governor to avoid annual disclosure requirements.

The case is being prosecuted by Assistant U.S. Attorneys Michael S. Dry, Jessica D. Aber, and Ryan S. Faulconer of the U.S. Attorney’s Office for the Eastern District of Virginia, and Deputy Chief David V. Harbach II of the Criminal Division’s Public Integrity Section. The case is being investigated by the FBI’s Richmond Division, IRS-CI, and the Virginia State Police.

NORFOLK, Va. – Ronald Chisholm, 53, of Norfolk, was indicted by a federal grand jury on charges that he conspired to commit mail fraud, committed mail fraud, aggravated identity theft, and false claims in connection with a scheme to defraud the Internal Revenue Service.    

Dana J. Boente, United States Attorney for the Eastern District of Virginia; and Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, Internal Revenue Service-Criminal Investigations, made the announcement.

Chisholm faces a maximum penalty of 144 years in prison if convicted of all counts.  The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

The indictment alleges Chisholm’s scheme began in 2010.  Chisholm recruited an employee of a local check cashing business to cash over $2 million in U.S. Treasury checks.  The employee of the check cashing business was paid $200 per check to cash the treasury checks in violation of the company’s policies.  Chisholm, along with unidentified co-conspirators stole the personal identifying information of numerous people and filed at least 698 fraudulent income tax returns.  As a result of these false returns, Chisholm and his co-conspirators received a total of $2,273,119.52 in fraudulent income tax refunds.

This case was investigated by the Internal Revenue Service.  Assistant United States Attorney Joseph L. Kosky is prosecuting the case on behalf of the United States.

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. 2:14-cr-132.

NORFOLK, Va. – Doretha Selby-Diggs, age 41, of Portsmouth, was sentenced today to five years in prison, followed by a three-year term of supervised release for her role in a health care fraud conspiracy.  Ms. Selby-Diggs was also ordered to pay $286,650 in restitution to the Virginia Department of Medical Assistance Services.

 Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Virginia Attorney General; John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C.; and Thomas J. Kelly, Special Agent in Charge, IRS-Criminal Investigations, Washington, D.C. Field Office, made the announcement after sentencing by United States Chief District Judge Rebecca Beach Smith.
                                                     
Selby-Diggs pled guilty to the charge on November 25, 2014.  According to court documents, Selby-Diggs worked for Progressive Counseling Services, LLC, as a qualified mental health professional responsible for providing mental health support services to Medicaid-eligible clients.  In reality, Selby-Diggs did not provide such services, but rather simply signed false progress notes in order to support claims for billing to Medicaid.  Specifically, court records indicate that Selby-Diggs signed progress notes that listed dates, times, and locations that conflicted with other progress notes and contained descriptions of counseling sessions that were identical to the descriptions provided in other progress notes submitted by other counselors.  In one specific example, court documents indicate Selby-Diggs signed a progress note detailing a counseling session that she purportedly provided to a Progressive client here in Virginia, at a date and time when, in reality, she was on a Carnival cruise.  Based on this false and fraudulent note, Medicaid reimbursed Progressive $182.00.  In total, Selby-Diggs personally signed 1,575 of these progress notes causing Medicaid to reimburse Progressive approximately $286,650.  The total amount Medicaid overbilled Progressive as a result of all of its activities was approximately $2,483,752.00, according to the court documents.

This case was investigated by the FBI’s Norfolk Field Office, the Medicaid Fraud Control Unit of the Virginia Attorney General’s Office, Homeland Security Investigations, and the Internal Revenue Service, Criminal Investigations Division.  Assistant U.S. Attorneys Joseph L. Kosky and V. Kathleen Dougherty are prosecuting the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-137.

RICHMOND, Va. – Robert L. Coley, 29, of Richmond, Virginia, was sentenced today to 120 months in prison, followed by 3 years of supervised release, for possessing a firearm as a convicted felon.  Coley was also sentenced to a concurrent term of 18 months in prison for violating the terms of supervised release imposed in connection with his previous federal conviction.  

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’ Washington Field Division, made the announcement after sentencing by U.S. District Judge John A. Gibney, Jr. and  Senior U.S. District Judge James R. Spencer.

A jury found Coley guilty on November 4, 2014.  According to evidence presented at trial, in the early morning hours of April 28, 2014, Coley fled on foot from a traffic stop in downtown Richmond after police officers detected a firearm in his waistband.  During the foot pursuit, officers observed Coley toss the firearm over a fence.  After detaining Coley, officers returned to the area where Coley had tossed the firearm and recovered a Smith & Wesson .40 caliber handgun.  The handgun was lodged in a chain-link fence and was loaded with a magazine containing 14 rounds of ammunition. 

Coley had been convicted of state and federal felony offenses prior to April 28, 2014, and was on supervised release for his prior federal conviction at the time of the instant offense.  Federal law prohibits anyone who has been convicted of a crime punishable by more than one year in prison from possessing a firearm or ammunition.  Coley was also prohibited by the terms of his supervised release for his previous felony conviction from possessing a firearm.  Coley’s possession of the firearm in this case was also the basis for the supervised release violation.      
  
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Richmond Police Department.  Assistant U.S. Attorney Dominick S. Gerace 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. 3:14CR00102.

NORFOLK, Va. –Paula G. Akers, age 51, of Virginia Beach, Va., was sentenced today to two years in prison, followed by three years of supervised release, for mail fraud.

Dana J. Boente, United States 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 Jackson’s sentencing before United States District Judge Raymond A. Jackson.

Akers was charged with the offense in a criminal information that was filed in federal court on August 4, 2014.  Akers later waived indictment and pleaded guilty to mail fraud on September 24, 2014.

According to court records, Akers, who was a long-time trusted bookkeeper of local construction companies, was found to be stealing hundreds of thousands of dollars from the companies.  Akers opened personal credit cards at the same institutions as her clients, and then proceeded to use over $300,000 of the companies’ funds to pay her personal credit card bills for items such as spa visits, vacations, tanning and nail salons and numerous clothing stores.  One of the victim companies almost had to shut its doors due to the theft.

This case was investigated by the FBI with the assistance of the Virginia Beach Police Department.  Assistant United States Attorney Elizabeth Yusi 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-112.

NEWPORT NEWS, Va. – Michael John Baigert, Jr., 21, of Virginia Beach, Virginia was sentenced today, on four counts of production of child pornography, to 240 months in prison for each count, to run concurrently, followed by a lifetime of supervised release. He was also ordered to pay Jane Doe 1 restitution in the amount of $2,031.36.

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

Baigert plead guilty to the indictment on October 16, 2014. According to court documents, Baigert acknowledged that in August, 2013, he travelled from his home in Virginia Beach to York County to visit “Jane Doe 1” whom he met via an on-line messenger app called “KIK.”  Baigert and “Jane Doe 1” entered a wooded area near her home where Baigert committed a number of sex acts on her.  The victim reported to the York-Poquoson Sheriff’s Office that she had been sexually assaulted.  Unbeknownst to the victim, Baigert recorded a portion of the sex acts on his iPhone. Detectives obtained a search warrant for the defendant’s home where they seized a number of items.  Baigert admitted to detectives that he engaged in a number of sex acts with “Jane Doe 1” who he knew to be 14 or 15 years old.  Further investigation revealed three other victims, age 16 or younger, with whom Baigert engaged in sexual activity.  In each instance Baigert asked the victim if he could record their sexual activity and was told “no” each time. Baigert disputes that he asked any of the victims if he could record their sexual activity.  Numerous homemade videos depicting young females engaged in sexually explicit conduct were found on electronic devices recovered from Baigert’ s home following execution of the search warrant.
 
This case was investigated by the Federal Bureau of Investigation.  Assistant U.S. Attorney Lisa R. McKeel is prosecuting the case.

ALEXANDRIA, Va. – David Deptula, 62, of Oakton, Virginia, has agreed to pay $125,000 to settle civil penalty claims relating to allegations that he engaged in a prohibited conflict of interest while he served as the Chief Executive Officer for Mav6, LLC (“Mav6”), a privately owned defense contracting company.

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.

Deptula most recently served as a Lieutenant General with the United States Air Force until his retirement on October 1, 2010. Following his retirement from the Air Force, Deptula became the CEO for Mav6 on February 22, 2011. From June 2011 to July 2012, while serving as CEO of Mav6, Deptula engaged in communications or appearances on behalf of Mav6 before United States’ officers regarding a U.S. military defense program known as Blue Devil Block II, a program in which the United States contends Deptula participated personally and substantially while he was with the Air Force. As part of the civil settlement, Deptula has agreed to pay $125,000 to resolve allegations that his conduct violated conflict of interest prohibitions under federal law. The civil penalty claims settled by Deptula and the United States are allegations only; there has been no determination of civil liability.

This case was investigated by the FBI’s Washington Field Office and the U.S. Air Force Office of Special Investigations. The resolution obtained in this matter was the result of an investigation by Assistant U.S. Attorneys Gerard Mene and Peter Hyun of the Civil Division of the U.S. Attorney’s Office for the Eastern District of Virginia.

NORFOLK, Va. – Kevin D. Jackson, age 35, of Norfolk, Va., was sentenced today to 17 ½ years in prison, followed by lifetime supervised release, for receipt of child pornography.
Dana J. Boente, United States 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 Jackson’s sentencing before Senior United States District Judge Robert G. Doumar.
A Norfolk federal grand jury indicted Jackson on June 19, 2014, on four counts relating to child pornography. Jackson pleaded guilty to receipt of child pornography on October 2, 2014. 
According to court records and evidence, Jackson sought out images of child pornography via the Internet for a number of years.  A forensic examination confirmed that Jackson retained on his computer 54 videos and 189 pictures of child pornography.  Jackson was also found to be sexually abusing a toddler and producing images of that abuse.  Jackson was convicted in the City of Norfolk for the sexual abuse.  Jackson also admitted to sexually abusing other minors.
This case was investigated by the FBI.  Assistant United States Attorneys Randy Stoker and Elizabeth Yusi 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-99.

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ALEXANDRIA, Va. – Michael Anthony Randall, aka “Divine tha Victorious Mack,” 32, previously from Charlottesville, Virginia, and Galveston, Texas, but mostly recently from Houston, Texas, pleaded guilty today to sex trafficking of a child.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C.,; and Colonel Edwin C. Roessler, Jr., Chief of the Fairfax County Police Department, made the announcement after the plea was accepted by U.S. District Judge Liam O’Grady.

Randall faces a maximum penalty of life 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.

In a statement of facts filed with the plea agreement, Randall admitted that he was a member of a sex trafficking venture that was sometimes known as, “Horse Block Pimpin’.”  The sex trafficking venture operated from at least 2009 to at least 2013. Randall conceded that he used force and coercion to maintain control over victims who were prostituted and to keep them from leaving. He and other members of this venture used force, threats of force, and coercion to prostitute more than 55 women and girls, some of whom were minors.

Randall prostituted victims in several different states, including Virginia, North Carolina, Maryland, New Jersey, New York, Pennsylvania, and Texas. Randall held a supervisory role in the sex trafficking venture, which included recruiting, harboring, and prostituting women and girls, and arranging for the transportation of girls and women who were prostituted. Among other things, he used false promises of a better life, force and coercion to recruit women and keep them prostituting.  The victims were required to give nearly all of the prostitution proceeds to Randall and other co-conspirators of Horse Block Pimpin’.

This case was investigated by Homeland Security Investigations and the Fairfax County Police Department, with the assistance of the Stafford County Sheriff’s Office, the Henrico County Police Department, the Spotsylvania County Sheriff’s Office, and the Lynchburg Police Department. Assistant U.S. Attorney Michael J. Frank and Special Assistant U.S. Attorney Kathryn A. Kimball 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-39.

RICHMOND, Va. –James Ashby Moncure, Jr., 42, of Fredericksburg, Virginia, pleaded guilty today to charges of Wire Fraud and Engaging in Unlawful Monetary Transactions. 

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 J. Kelly, 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 – Washington Division, made the announcement after the plea was accepted by U.S. District Judge Henry E. Hudson.

Moncure was indicted by a federal grand jury on October 7, 2014.  He faces a maximum penalty of 30 years in prison when he is sentenced on May 15, 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, 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, Va., along Interstate 95 and US 1, 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.  For the Wire Fraud transaction in Count Four, Moncure admitted receiving $200,000 from investor T.S. on January 28, 2014.  The defendant had promised T.S. that the money would be used to expand and enhance the QCCS and to purchase land.  In reality, on January 29, 2014, Moncure wire transferred $190,000 of T.S.’s funds to his own Options Express, Inc. trading account, where the money was used for his stock trading activities.  He followed the same pattern for the Engaging in Unlawful Monetary Transactions charge in Count Seven.  After receiving $800,000 in QCCS investment monies from investor C.C. on June 6, 2013, Moncure transferred those same funds to his Options Express, Inc. trading account on June 7, 2013.  He then used C.C.’s funds for his stock trading activities, as opposed to investment into the QCCS.

This case was investigated by FBI’s Fredericksburg Resident Agency, Internal Revenue Service-Criminal Investigations, and U.S. Postal Inspection Service.  Assistant U.S. Attorneys Michael Gill and Katherine Martin are prosecuting the case on behalf of the United States.

This investigation has been 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.

NORFOLK, Va. – Stephen Ron Martin II, 21, of Virginia Beach, was sentenced today to 250 months in prison, followed by three years of supervised release for distribution of heroin resulting in death.
United States Attorney Dana J. Boente of the Eastern District of Virginia; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C.; and Police Chief Jim A. Cervera, Virginia Beach Police Department, made the announcement after Martin was sentenced by United States District Judge Raymond A. Jackson of the Eastern District of Virginia.

Martin pled guilty on October 10, 2014.  According to court documents, on October 27, 2013, Martin distributed heroin to Steven Bradley Nichols.  On October 29, 2013, Virginia Beach Police found an unresponsive Nichols while they were conducting a well-being check that had been called into 9-1-1.  Police also found evidence of recent heroin use in plain view inside Nichols’ apartment.  A depressed syringe was found on top of a desk within an arm’s length of Nichols’ body.  A needle mark was on Nichols’ arm.  An open plastic bag containing an off-white powder was found on the kitchen counter.  The substance was later tested and found to contain heroin.  An autopsy confirmed that Nichols had injected heroin and subsequently died as a result of acute heroin intoxication.

This case was investigated by HSI Norfolk and the Virginia Beach Police Department.  Assistant United States Attorney Darryl J. Mitchell 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-78.

RICHMOND, Va. – Heather Elizabeth Coffman, 29, of Glen Allen, Virginia, pleaded guilty today to the charge of making a false statement involving international terrorism.

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 United States District Judge John A. Gibney, Jr.  

Coffman pleaded guilty to a one-count criminal information and will be sentenced on May 11, 2015.

In a statement of facts filed with the plea agreement, Coffman admitted that beginning prior to June 2014 and continuing up through November 2014, she used several Facebook accounts under different names showing her support for the ISIS cause.  These accounts also revealed the defendant’s romantic involvement with an individual referred to as “N.A.,” a foreign national living outside of the United States.  In the months leading up to September 2014, Coffman and N.A. conversed almost daily via Facebook and other communications platforms.  During their conversations, Coffman and N.A. explored options for N.A. to travel to Syria in order to fight for ISIS and die a “Shaheed,” referring to a martyr who dies for “jihad.” 

According to the plea agreement filed today, Coffman admitted that she lied on November 13, 2014, when she told FBI agents that she had no idea when asked whether an individual referred to as N.A. had talked to anybody else who supported ISIS, and that she did not know anybody he talked to when, as Coffman well knew, she had previously put N.A. in contact with ISIS fighters and N.A., in turn, had communicated with them to facilitate N.A.’s travel to Turkey to join ISIS. 

This case was investigated by FBI’s Richmond Field Office and the Richmond Joint Terrorism Task Force (JTTF). The JTTF is a collection of state, federal and local law enforcement agencies, dedicated to the mission of proactively keeping communities safe by thwarting national security and terrorism issues before they become a reality.  Member agencies of the Richmond JTTF who assisted in this particular investigation include Virginia State Police, Henrico County Police, Chesterfield County Police, Richmond Police, Homeland Security Investigations, United States Secret Service, Bureau of Alcohol Tobacco and Firearms and Explosives, Department of State Diplomatic Security Service, Transportation Security Administration and Defense Criminal Investigative Service.

Assistant U.S. Attorneys Michael Gill and Jessica Aber 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. 3:15-cr-016.

NORFOLK, Va. – Sherry R. Kelley, 41, of Exmore, Va., was sentenced today to two years in prison, followed by one year of supervised release, for committing aggravated identity theft.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service-Criminal Investigations Washington Field Office; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C.; and Captain Timothy A. Reibel, Virginia State Police Bureau of Criminal Investigations, made the announcement after Kelley's sentencing before Senior United States District Judge Robert G. Doumar.

A Norfolk federal grand jury indicted Kelley on June 18, 2014 on 10 counts of aggravated identity theft and 10 counts of using others' social security numbers.  On September 16, 2014, Kelley pleaded guilty to aggravated identity theft, as charged in count one of the indictment.

According to court records, Kelley previously owned and operated four H & R Block tax franchise stores located in Belle Haven, Onley, Melfa, and Cheriton on Virginia's Eastern Shore.  While overseeing the operation of these stores, Kelley gained access to and misused the identity information of approximately 20 tax clients.  Unbeknownst to her clients or H & R Block, during a three year period Kelley electronically applied for and obtained 30 lines of credit from H & R Block Bank in her clients' names and forged her clients' signatures to account paperwork.  Then, using debit cards issued with the approved credit lines, Kelley made thousands of dollars in purchases and ATM cash withdrawals against the fraudulently obtained accounts, before later repaying the sums taken.

This case was jointly investigated by agents with the Internal Revenue Service-Criminal Investigation, Homeland Security Investigations, and the Virginia State Police.  Assistant United States Attorney Robert J. Krask 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-92.

Also illegally sold practice grenade fuses

ALEXANDRIA, Va. – Eric Mark Way, 29, of Aliquippa, Pennsylvania, pleaded guilty today to charges of transferring an illegally modified flare gun.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after the plea was accepted by U.S. District Judge Claude M. Hilton.

Way was charged via a one count criminal information. Way faces a maximum penalty of 10 years in prison when sentenced on April 10, 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, Way sold multiple modified flare gun kits.  These kits consisted of a flare gun, an insert that converted the legal signaling device into an illegal 12 gauge device, and a canvass carrying pouch.  One the individuals who purchased this modified weapon from Way was a violent, convicted felon.  In addition to selling the modified flare guns, Way was also caught illegally selling M228 practice grenade fuses.  In order to sell these fuses, both the seller and purchaser must possess a federal explosives license.  Way does not have a federal explosives license.

This case was investigated by ATF. Assistant U.S. Attorney Zachary Terwilliger and Special Assistant United States Attorney Caroline Friedman 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. 1:15CR08.

ALEXANDRIA, Va. – Itzhak Loz, 47, and Ronen Fakiro, 47, both of Rishon Le Zion, Israel, along with brothers Arkadiy Bangiyev, age 37, of Rego Park, New York, and Eduard Bangiyev, age 39 of Forest Hills, New York, have all pleaded guilty to RICO conspiracy involving multiple acts of counterfeiting of U.S. currency and money structuring. 

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Joseph Clancy, Acting Director of the United States Secret Service, made the announcement after the pleas were accepted by U.S. District Judge Liam O’Grady. 

According to court documents filed in this case, Loz, Fakiro, and the Bangiyev brothers participated in a criminal enterprise that engaged in multiple acts involving counterfeiting of U.S. currency and money structuring.  From 2004 through 2014, the Bangiyevs distributed counterfeit high-quality $50 and $100 federal reserve notes that were manufactured in Israel and the United States by Itzhak Loz and others through the off-set printing process.  Beginning around January 2014, Fakiro and Loz imported into the United States from Canada and Israel numerous printing presses and machines.  They shipped this printing equipment to a warehouse they purchased in Cherry Hill, New Jersey, to manufacture counterfeit $100 notes.  At the New Jersey warehouse, Fakiro and Loz manufactured over $2.56 million worth of counterfeit $100 notes.  In addition, Fakiro and Loz were in the process of counterfeiting the $100 note released in October 2013 at the New Jersey warehouse, including certain security features for the $100 note, including watermarks, security thread simulations and blue 3-D ribbons.  In May 2014, the U.S. Secret Service seized approximately $2.56 million worth of counterfeit $100 notes from a storage unit leased by Loz in New York.  According to the United States Secret Service, over $86 million in counterfeit U.S. currency linked to this organization have been passed or seized by law enforcement globally since 1999. 

Loz, Fakiro and the Bangiyev brothers were indicted by a federal grand jury on August 7, 2014. Loz will be sentenced on May 15, 2015.  Fakiro will be sentenced on May 8, 2015. The Bangiyevs will be sentenced on May 1, 2015. All four face a maximum penalty of 20 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

This case was investigated by the United States Secret Service.  Assistant U.S. Attorneys Kimberly R. Pedersen and Gordon L. Kromberg are prosecuting the case on behalf of the United States.

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RICHMOND, Va. – Joseph Giovanni Santiago, 50, of Los Angeles, California, was sentenced today to 78 months in prison, followed by 3 years of supervised release for engaging in a life insurance scheme involving nearly 1,000 individuals across the country. Santiago was also ordered to pay $1,313,749.07 in restitution to two separate insurance companies.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Gary Barksdale, Inspector in Charge of the Washington Division of the United States Postal Inspection Service; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge Henry E. Hudson.

Santiago pleaded guilty on October 14, 2014 to conspiracy to commit mail fraud.  According to court documents, he was the founder of an entity known as Premier Debt Solutions (or “PDS”), which purported to provide faith-based debt restructuring and other services to churches across the country.  Santiago also was the founder of 4Him Ministries, which purported to be a non-profit, religious organization.

In pleading guilty, Santiago admitted that he and his conspirators misled insurance companies by falsely representing that PDS employed hundreds of independent contractors for whom PDS intended to obtain employer-funded whole life insurance policies.  In fact, none of these individuals were employed by PDS.  Rather, Santiago and his conspirators recruited individuals to make false applications for life insurance, posing as PDS employees, so that Santiago and his conspirators could collect the advanced commissions paid for the sale of the policies.  In addition, Santiago and his conspirators convinced the policy holders to assign their rights in those policies to 4Him Ministries.  The initial plan was to use the advanced commissions from the initial sale of the life insurance policies to make premium payments until they could monetize the policies by selling the policies or securitized interests in the policies to investors.

As a result of this conspiracy, insurance companies ING and Unum Group issued over 800 life insurance policies, each with a face value of $100,000, to supposed PDS employees.  The insurance companies mailed these policies to individuals across the country, including individuals within the Eastern District of Virginia.  ING and Unum Group also paid these conspirators more than $1.4 million in advance commissions for the sale of these life insurance policies.  Ultimately, both insurance companies cancelled all the insurance policies issued to PDS members.

Santiago’s co-conspirator Mark Wayne George pleaded guilty on August 24, 2014 to conspiracy to commit mail fraud, and is scheduled to be sentenced before Judge Hudson on January 29, 2015.

This case was investigated by United States Postal Inspection Service and the Federal Bureau of Investigation.  Assistant U.S. Attorney Katherine Lee Martin is prosecuting the case on behalf of the United States.

Produced and possessed images of minors met on the Internet

ALEXANDRIA, Va. – Patrick Joseph Friedel, 29, of Arlington, Virginia, pleaded guilty today to production and possession of child pornography.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C.; and Edwin C. Roessler, Jr., Chief of Police, Fairfax County Police Department made the announcement after the plea was accepted by U.S. District Judge T.S. Ellis, III.

Friedel was originally indicted by a federal grand jury on November 20, 2014.  Friedel faces a mandatory minimum of 15 years in prison and a maximum penalty of 30 years in prison when he is sentenced on April 24, 2015.  The maximum statutory sentence is prescribed by Congress.  It is provided here for informational purposes.  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, Friedel acknowledged meeting five underage teenagers over the Internet and exchanging sexually explicit images with them.  In this pattern of activity, Friedel used persuasion, including sending depictions of minors engaged in sexually explicit conduct, and coercion, including threats to post images online and tell parents.   On three occasions, Friedel picked up one of the minors and engaged in sexual activity with her.  He took pictures and videos of this activity, which according to the plea agreement, included sadistic or masochistic conduct or other depictions of violence.   

This case was investigated by Homeland Security Investigations and the Fairfax County Police Department with the assistance of the Northern Virginia/DC Internet Crimes Against Children Task Force.  Assistant U.S. Attorneys Matthew Gardner and Tracy Doherty-McCormick 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. 1:14-cr-383.

NEWPORT NEWS, Va. – Isaiah Al’Von Holloman, 21, of Newport News, pleaded guilty today to a charge of receiving child pornography.

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

Holloman was indicted by a federal grand jury on Nov. 19, 2014.  According to a statement of facts filed with the plea agreement, law enforcement linked certain file-sharing activity online to Holloman’s residence.  Law enforcement agents executed a search warrant on Holloman’s home and seized a hard drive that contained more than 600 images of child pornography.  Holloman admitted to downloading images of child pornography and to using a peer-to-peer network to share child pornography files.  Holloman also admitted that he used false names to set up accounts to obtain child pornography, and that he possessed hundreds of videos containing child pornography.

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

NORFOLK, Va. – David Beningo, 53, of Virginia Beach, was sentenced today to 90 months in prison, followed by a life term of supervised release for receipt of child pornography.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C., made the announcement after sentencing by U.S. District Judge Mark S. Davis.

Beningo pleaded guilty on June 24, 2014.  According to court documents, Beningo, a retired Navy Chief, was a child pornography file sharer on a peer-to-peer network.  Agents were able to determine that someone using a particular internet protocol address was sharing files.  That online activity was then linked to Beningo’s residence.  Agents executed a search warrant on Beningo’s home and his computer equipment was seized and examined.  The hard drive contained more than 450 videos of child pornography including 4 videos which contained sadistic/masochistic depictions.  Beningo admitted to downloading images of child pornography and to using the peer-to-peer network.  He also acknowledged that the network required him to set up a shared folder from which others could download images.

This case was investigated by Homeland Security Investigations.  Assistant U.S. Attorney Randy Stoker 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. 2:14cr86.

NORFOLK, Va. – Bruce Michael Jarvela II, age 41, of Virginia Beach was sentenced today to 97 months in prison, followed by 25 years of supervised release for possession of child pornography.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, and Susan E. Triesch, Special Agent-in-Charge of the Naval Criminal Investigative Service, Norfolk Field Office, made the announcement after sentencing by Senior United States District Judge Robert G. Doumar.

Jarvela pled guilty to the charge on September 4, 2014.  According to court documents, Jarvela, an active duty petty officer in the Navy, downloaded an image of child pornography to his Facebook page and then tried to distribute that image to another Facebook user.  Facebook flagged the image, shut down Jarvela’s account, and notified the National Center for Missing and Exploited Children.  Investigators executed a search warrant on Jarvela’s Virginia Beach residence in November 2013.  They seized numerous pieces of computer equipment.   Jarvela had been downloading images since 2003 and sharing with others via chat rooms and email since 2008.  He is attributed with having 775 images.
This case was investigated by the Naval Criminal Investigative Service.  Assistant United States Attorney Randy Stoker 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.  2:14-cr-101.

NEWPORT NEWS, Va. – Julie L. Duffield, 45, of Eureka, MT, pleaded guilty yesterday to conspiracy to commit mail and wire fraud.

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

Duffield was indicted by a federal grand jury on November 17, 2014.  Duffield faces a maximum penalty of twenty 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. Duffield is scheduled to be sentenced on May 5, 2015.

In a statement of facts filed with the plea agreement, Duffield admits to owning and operating Professional Closing Company, a business that among other things provided closing serviced for the transfers of timeshare units from 2010 until 2013.  This business was operated at various times from Arizona and Montana and prior to 2010 Duffield provided such services through another company.
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.  As alleged in the indictment, co-defendant Keith Kosco, owned and operated a number of entities involved in travel, tourism and timeshare businesses including Resort Realty, Inc., Resort Solutions, Inc., and Exotic Equity Transfers, LLC (“EET”). Since at least 2007, EET conducted timeshare transfers in exchange for a fee charged to the original owner. It is alleged that 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 Duffield and Professional Closing Company which served as a third party closing entity from 2007 through at least mid-2013. Duffield received a fee from EET for engaging in such services. Beginning in 2009, EET used the names of stolen identities and straw owners as the new owners for the transferred timeshare units.  Duffield and others accomplished the transfers by having a fraudulent deed and contract produced to document the sale, sending the documents by mail to the previous owners and then to the resort company.  Upon completion of the transfers maintenance fee bills were sent to the new purported owners of the timeshares.  Those mailings were collected by EET at a post office and the majority of the fees were never paid.

For a number of years Duffield and other employees used the stolen identity of “SL” as a grantee for transfers of timeshare units. “SL” was unaware that hundreds of timeshare units were being transferred to “SL’s” name. Duffield handled approximately 459 transfers of timeshare units to “SL.”  Due to the number of units transferred to “SL,” certain resort companies raised objections to subsequent EET efforts to transfer units. Duffield and others contacted the resorts falsely claiming to be “SL” in order to accomplish the timeshare transfer. When it became evident that “SL” could no longer be used to transfer timeshares, Duffield recruited “FS” and “AG” to participate as straw buyers. Approximately 252 timeshare units were transferred to “FS” and 63 units were transferred to “AG.”

From 2009 through 2013, Duffield and others caused the transfer of over one thousand timeshare units into the names of stolen identities and straw owners causing losses to various resort companies. During this same time period EET collected fees related to the fraudulent transfers in excess of $600,000
This case was investigated by the FBI and the Internal Revenue Service. Assistant U.S. Attorney Brian J. Samuels is prosecuting the case on behalf of the United States.

NORFOLK, Va. – Shavika Thompson, age 36, of Chesapeake was sentenced yesterday to 41 months in prison for conspiracy to commit wire fraud and a consecutive sentence of 24 months for aggravated identity theft.  Thompson was also ordered to pay restitution in the amount of $99,875.97.

Dana J. Boente, United States Attorney for the Eastern District of Virginia, and Gary Barksdale, Inspector in Charge of the Washington Division of the United States Postal Inspection Service, made the announcement after sentencing by Senior United States District Judge Robert G. Doumar.

Thompson pled guilty to the charge on September 4, 2014.  According to court documents, Thompson and co-conspirator, Sheila Clark Lewis, acquired identity information without authorization from Thompson’s employer, a telephone messaging service that catered to medical offices.  In many cases, they used the information to establish store credit card accounts at K-Mart, Sears, and Kohl’s department stores.  At various times between November 2012 and September 2013, they made purchases using the victims’ accounts.  The identity victims included elderly medical patients.  Surveillance videos showed that Thompson and Lewis were often together at the time of a purchase or attempted purchase.  Over the course of about one year, they purchased or attempted to purchase nearly $100,000 in merchandise.  Both defendants were under supervised release during the time of the offenses.  Both had been previously prosecuted by the Norfolk office.

This case was investigated by the U.S. Postal Inspection Service.  Assistant United States Attorney Randy Stoker 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-88.

NORFOLK, Va. –W. Wayne Perry, Jr., 56, and his wife Angela Perry, 52, formerly of Suffolk, Virginia, were sentenced today for charges including health care fraud, false statements relating to health care matters, alteration of records and aggravated identity theft to W. Wayne Perry, Jr. was sentenced to 63 months in prison, followed by three years of supervised release.  Angela Perry was sentenced today to 25 months in prison, followed by three years of supervised release.  In addition, together they are to pay $1,459.451.08 in restitution. 
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Virginia Attorney General Mark R. Herring and Acting Special Agent in Charge Michael F. Paul of the FBI’s Norfolk Field Office made the announcement after sentencing by U.S. District Judge Mark S. Davis.
W. Wayne Perry, Jr. and Angela Perry were found guilty by a jury on September 16, 2014, following a three week trial.  According to court documents and evidence, W. Wayne Perry, Jr., was the owner and operator of Community Personal Care, a Norfolk business authorized to provide home health care services that were reimbursable by Medicaid, including personal care and respite care services.  Angela Perry, his wife, was an office administrator and executive assistant.  Over a four year period, W. Wayne Perry, Jr. and Angela Perry orchestrated a massive false billing scheme.  Approximately 7,800 fraudulent claims were submitted to the Virginia Medicaid program, falsely representing that personal care and respite care services had been provided to 78 Medicaid recipients by Community Personal Care.  As a result of the fraudulent billing scheme, the defendants obtained health care benefit payments from Medicaid to which they were not entitled, in the approximate amount of $1.4 million.  To conceal the fraudulent payments, the defendants directed employees to alter the company’s office records, including home health aide time sheets.
This case was investigated by the FBI and the Virginia Attorney General’s Medicaid Fraud Control Unit.  Assistant U.S. Attorneys Alan M. Salsbury and Melissa E. O’Boyle 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. 2:13-cr-156.

NORFOLK, Va. – Daniel Brown, 39, of Norfolk, was sentenced today to four years in prison, followed by a ten-year term of supervised release for possessing child pornography.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C., made the announcement after sentencing by U.S. District Judge Mark S. Davis.

Brown pled guilty to possessing child pornography on September 23, 2014.  According to court documents, Brown was discovered during an investigation into a photo sharing website known to be used for sharing child pornography.  Brown was a registered user of the site and posted suggestive pictures of young girls with comments implying he was creating pornographic images of these girls and was willing to trade images with other users.  The investigator further revealed that Brown had posted over 4,000 sexually suggestive comments regarding images of children that had been posted by other users on this particular website. 

Based upon Brown’s activities on the website, investigators obtained a search warrant for Brown’s residence and his email account.  Agents found that Brown possessed child pornography in his email account as well as on the electronic devices in his home.  In addition, Brown was routinely using his email account to trade child pornography with other users from the photo sharing website.  Brown was active duty Army stationed at Little Creek Amphibious Base when he was arrested.
This case was investigated by Homeland Security Investigations.  Assistant U.S. Attorney Joseph L. Kosky is prosecuting the case on behalf of the United States.

ALEXANDRIA, Va. – Lenny Paul Haskins, aka “2 Much,” 34, of Las Vegas, Nevada, and Richmond, California, pleaded guilty today to sex trafficking of a child.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; and Colonel Edwin C. Roessler, Jr., Chief of the Fairfax County Police Department, made the announcement after the plea was accepted by U.S. District Judge Claude M. Hilton.

Haskins faces a maximum penalty of life imprisonment.  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, since at least 2005, Haskins has been a pimp and has derived his income primarily from prostituting women and girls.  Haskins has prostituted women and girls in numerous cities and states, including New York, Nevada, Maryland, Louisiana, Tennessee, Colorado, Utah, California, and various places in Virginia (including Herndon, Reston, Vienna, Sterling, Falls Church, Tysons Corner, Dulles, Fairfax County, Arlington, and Alexandria).

Around June 2014, Haskins encountered two juveniles at a hotel around Sacramento, California.  One was 15 years old and the other was 17 years old.  Both were runaways from foster care.  Haskins provided marijuana and eventually recruited them to prostitute for him.  Once he recruited them, Haskins performed sex acts with the victims.

In August 2014, Haskins instructed the victims to take a bus to Herndon, Virginia, for the purposes of being prostituted there.  Haskins arranged for advertisements to be posted on the Internet site Backpage.com to obtain sex customers for the juveniles.  The juveniles sent prostitution proceeds to Haskins using various money transfer businesses.  The Las Vegas Police Department arrested Haskins in August 2014 but he continued to call the victims and give them directions from jail.

This case was investigated by the FBI’s Washington Field Office and the Fairfax County Police Department.  Assistant U.S. Attorney Michael J. Frank 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. 1:14-CR-432.

NORFOLK, Va. – Dwight McEachin, 19, of Virginia Beach, Virginia, was indicted by a federal grand jury today on charges of distribution, receipt, and possession of child pornography.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C., made the announcement after the return of the indictment by the grand jury. 

McEachin 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.

The indictment alleges that McEachin was using both KIK messenger and e-mail to trade images of child pornography with numerous people.  McEachin was originally arrested by HSI on December 15, 2014.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.  Assistant U.S. Attorney Elizabeth M. Yusi is prosecuting the case on behalf of the United States.

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. 2:15-cr-3.

ALEXANDRIA, Va. – Saul Pacheco Mejia, 48, of Herndon, Virginia, was indicted by a federal grand jury today on charges of conspiracy to distribute cocaine, possession with the intent to distribute cocaine, and the use of a firearm during a drug trafficking crime resulting in death.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Colonel Edwin C. Roessler, Jr., Fairfax County Chief of Police, made the announcement.

Pacheco Mejia faces a maximum penalty of death, or up to life imprisonment 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. The determination as to whether or not to seek the death penalty has not been made in this case.

According to the indictment, Pacheco Mejia and two conspirators traveled to Reston, Virginia, to sell cocaine to Colvin Morris.  After Morris attempted to rob them of the cocaine, Pacheco Mejia and his co-conspirators chased Morris from the apartment, shooting and killing him as he attempted to flee.  Pacheco Mejia and his co-conspirators fled the scene and later fled to Honduras.

This case was investigated by the Fairfax County Police Department. Assistant U.S. Attorneys Jonathan Fahey and Michael Ben’Ary are prosecuting the case on behalf of the United States.
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.1:15cr2.

RICHMOND, Va. – Damion Latoras Foster, 33, of Atlanta, Georgia, pleaded guilty today to charges of Conspiring to Commit Bank Fraud and Aggravated Identity Theft.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Gary Barksdale, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Douglas F. Mease, Special Agent in Charge of the United States Secret Service’s Richmond Field Office, made the announcement after the plea was accepted by U.S. District Judge John A. Gibney.

Foster was indicted by a federal grand jury on October 7, 2014. He faces a maximum penalty of 32 years in prison when he is sentenced on April 21, 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, Foster admitted that he was part of a group that stole business checks from commercial mailboxes and used them to make counterfeit checks. The group then recruited people from areas where the homeless or unemployed would congregate to cash the counterfeit checks.  The check-cashers received a small sum of cash for cashing counterfeit checks made payable to them.   The remaining proceeds went to the recruiters.  Foster’s fingerprints were found on a laptop computer, stolen checks, and other items shipped from a Richmond FedEx store on February 6, 2014, the date co-defendants Brandon Jermaine Johnson and Devante Carson were arrested.  Forensic analysis of the laptop computer revealed digital images of counterfeit checks created using stolen business checks as exemplars.  Foster’s fingerprints were also found on counterfeit checks passed in Kansas City, Missouri and Sioux Falls, South Dakota.  He was arrested at a hotel in Jacksonville, Florida on September 16, 2014, and found in possession of a computer, scanner, printer, check stock, and business checks apparently stolen from the U.S. Mail. 

Five other co-defendants in this case pleaded guilty and have been sentenced to terms of incarceration as follows:  Brandon Jermaine Johnson, 96 months, Jeffrey Keith Barnes, II, 7 ½ months; Devante Carson, 33 months; Christopher Eugene Pope, 15 months; and Kevin Lavon Smith, 9 months.  Another co-defendant, Rasheeda McConnell, was convicted by a jury and sentenced to serve 60 months. 

This case was part of Operation Homeless, a nationwide initiative being conducted by the U.S. Postal Inspection Service and U.S. Attorney’s Offices to aggressively prosecute groups that recruit the homeless and indigent to cash counterfeit checks.   It was investigated by the United States Postal Inspection Service, United States Secret Service, Chesterfield County Police Department, and Henrico County Police Department as members of the Metro-Richmond Identity Theft Task Force.  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.  Virginia Assistant Attorney General and Special Assistant U.S. Attorney Charles A. Quagliato and Assistant U.S. Attorney Michael C. Moore are prosecuting the case on behalf of the United States.

RICHMOND, Va. – Former Virginia Governor Robert F. McDonnell, 60, of Glen Allen, Virginia, was sentenced today 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.

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; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; Richard Weber, Chief, IRS Criminal Investigation (IRS-CI); and Colonel W. Steven Flaherty, Virginia State Police Superintendent, made the announcement after sentencing by Senior U.S. District Judge James R. Spencer.

Robert McDonnell and his wife, Maureen McDonnell, were convicted following a jury trial of one count of conspiracy to commit honest-services wire fraud and one count of conspiracy to obtain property under color of official right.  Robert McDonnell was also convicted of three counts of honest-services wire fraud and six counts of obtaining property under color of official right, while Maureen McDonnell was convicted of two counts of honest-services wire fraud and four counts of obtaining property under color of official right.  In total, Robert McDonnell was convicted of 11 of 13 counts and Maureen McDonnell was convicted of eight of 13 counts.

“As Governor of the Commonwealth of Virginia, Robert McDonnell violated the public’s trust and tarnished the highest office in state government,” said U.S. Attorney Boente.  “This investigation, prosecution and sentence will help restore and maintain the high integrity of the governor’s office, while affirming our commitment to prosecuting public officials who commit crimes.”

“Robert McDonnell corrupted the most powerful office in Virginia and fractured the public’s trust,” said Assistant Attorney General Caldwell.  “Taking bribes in exchange for official actions is not politics as usual—it is an insidious crime that strikes at the heart of public service and will not be tolerated.”
“This case was always about dishonesty and corruption,” said Special Agent in Charge Lee. “Today’s sentence illustrates that plainly.  As I’ve said before, public corruption is the FBI’s highest criminal investigative priority and we will respond to any credible allegation of a public official subverting the public’s trust for their personal gain.  I hope the court’s action today brings closure to Virginia’s concerned citizens and gives them reassurance that no one is above the law.

“Public officials hold positions of trust in the eyes of the public.  Former Governor Robert McDonnell broke that trust when he used his government office for personal gain and today he is being held accountable for his criminal conduct,” said Richard Weber, Chief, IRS-Criminal Investigation.  “IRS-CI will continue to investigate public corruption to ensure everyone plays by the same rules—regardless of job or elected position held.”

According to the evidence presented at trial, from April 2011 through March 2013, the McDonnells participated in a scheme to use the former governor’s official position to enrich themselves and their family members by soliciting and obtaining payments, loans, gifts and other things of value from Star Scientific and Jonnie R. Williams Sr.  The McDonnells obtained these items in exchange for the former governor performing official actions to legitimize, promote and obtain research studies for Star’s products, including the dietary supplement Anatabloc.

According to evidence presented at trial, the McDonnells obtained from Williams more than $170,000 in direct payments as gifts and loans, thousands of dollars in golf outings, and numerous items.  As part of the scheme, Robert McDonnell arranged meetings for Williams with Virginia government officials, hosted and attended events at the Governor’s Mansion designed to encourage Virginia university researchers to initiate studies of Star’s products and to promote Star’s products to doctors, contacted other Virginia government officials to encourage Virginia state research universities to initiate studies of Star’s products, and promoted Star’s products and facilitated its relationships with Virginia government officials.
The evidence further showed that the McDonnells attempted to conceal the things of value received from Williams and Star to hide the nature and scope of their dealings with Williams from the citizens of Virginia by, for example, routing gifts and loans through family members and corporate entities controlled by the former governor to avoid annual disclosure requirements.

Maureen McDonnell is scheduled to be sentenced on February 20, 2015.
The case is being prosecuted by Assistant U.S. Attorneys Michael S. Dry, Jessica D. Aber, and Ryan S. Faulconer of the U.S. Attorney’s Office for the Eastern District of Virginia, and Deputy Chief David V. Harbach II of the Criminal Division’s Public Integrity Section.  The case is being investigated by the FBI, IRS-CI, and the Virginia State Police.

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-12.

NORFOLK, Va. – Justin Carter, 31, of Portsmouth, was sentenced today to 132 months in prison, followed by a life term of supervised release for receipt of child pornography.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C., made the announcement after sentencing by U.S. District Judge Mark S. Davis.
Carter pleaded guilty on August 27, 2014.  According to court documents, Carter was engaged in the soliciting, receiving, and sharing of images of child pornography via the Internet using a computer at a friend’s home.  A forensic examination of the computer showed that Carter exchanged numerous emails with other individuals in which they attached pictures of children engaged in various forms of sexually explicit conduct.  The images included prepubescent girls performing sexual acts with adults.  Some of the children depicted were of toddler age.  The computer contained approximately 547 images of child pornography on the hard drive.
This case was investigated by Homeland Security Investigations.  Assistant U.S. Attorney Randy Stoker is prosecuting the case on behalf of the United States.

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NORFOLK, Va. – Justin Carter, 31, of Portsmouth, was sentenced today to 132 months in prison, followed by a life term of supervised release for receipt of child pornography.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C., made the announcement after sentencing by U.S. District Judge Mark S. Davis.

Carter pleaded guilty on August 27, 2014.  According to court documents, Carter was engaged in the soliciting, receiving, and sharing of images of child pornography via the Internet using a computer at a friend’s home.  A forensic examination of the computer showed that Carter exchanged numerous emails with other individuals in which they attached pictures of children engaged in various forms of sexually explicit conduct.  The images included prepubescent girls performing sexual acts with adults.  Some of the children depicted were of toddler age.  The computer contained approximately 547 images of child pornography on the hard drive.

This case was investigated by Homeland Security Investigations.  Assistant U.S. Attorney Randy Stoker is prosecuting the case on behalf of the United States.

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NORFOLK, Va. – Rebecca Mae Gibbs, age 24, of Lewisport, KY, was sentenced today to 17 ½ years in prison, followed by a life term of supervised release for production of child pornography.
Dana J. Boente, United States Attorney for the Eastern District of Virginia and Susan E. Triesch,

Special Agent-in-Charge of the Naval Criminal Investigative Service Norfolk Field Office, made the announcement after sentencing by United States District Judge Mark S. Davis.

Gibbs pled guilty to the charge on September 30, 2014.  According to court documents, Gibbs’s co-defendant, Douglas Lawrence True, 23, of Clarksville, Indiana, asked her to produce images and videos of child pornography, and facilitate visits wherein True could sexually abuse the minor victim, who had not reached one year of age.  Gibbs performed a sexual act on the victim, recorded it on video, and sent it via cellular phone to True, located in the Eastern District of Virginia.  True pled guilty to receipt of child pornography on November 10, 2014 and is scheduled to be sentenced on February 20, 2015.  True is facing a maximum of 20 years in prison.
This case was investigated by the Naval Criminal Investigative Service, with the assistance of the Kentucky State Police.  Assistant United States Attorney Joseph Kosky 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. 2:14-cr-97.

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ALEXANDRIA, VA – Keith Hedman, 55, of Arlington, Virginia, the former chief executive officer of a Virginia-based security contracting firm, Protection Strategies, Inc., (PSI), has agreed to pay $4.5 million to settle civil claims relating to his involvement in a fraudulent scheme to create a front company to obtain contracts through the Small Business Administration’s (SBA) Section 8(a) program.  The Section 8(a) program allows qualified small businesses to receive sole-source and competitive-bid contracts set aside for minority-owned and disadvantaged small businesses.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, made the announcement after the settlement agreement was signed by both parties.

“The civil settlement illustrates the importance of not stopping at a criminal resolution when a defendant has pled guilty to fraud against the government,” said U.S. Attorney Boente.

The settlement resolves civil claims against Hedman relating to the criminal plea entered by him in U.S. v. Hedman, 1:13cr74. According to court records, in or about 2001 Hedman formed PSI, which was approved to participate in the 8(a) program based on the 8(a) eligibility of its listed president and CEO, an African-American female. When the listed president and CEO left PSI in 2003, Hedman became its sole owner, and the company was no longer 8(a)-eligible.

In 2003, Hedman created Security Assistance Corporation (SAC), another Arlington-based security contractor, to ensure that he could continue to gain access to 8(a) contracting preferences for which PSI was no longer qualified. Prior to applying for SAC’s 8(a) status, Hedman selected an employee, Dawn Hamilton, to serve as a figurehead owner based on her Portuguese heritage and history of social disadvantage. In reality, the new company was managed by Hedman and PSI senior leadership in violation of 8(a) rules and regulations. To deceive the SBA, the co-conspirators falsely claimed that Hamilton formed and founded the company and that she was the only member of the company’s management. Based on those misrepresentations, SAC obtained 8(a) status in 2004.

From 2004 through February 2012, Hedman impermissibly exercised ultimate decision-making authority and control over SAC by directing its finances, allocation of personnel, and government contracting activities.  Hedman nonetheless maintained the impression that Hamilton was leading the company, including through forgeries of signatures of Hamilton to documents she had not seen or drafted. Hedman also retained ultimate control over the shell business’s bank accounts throughout its existence. In total, the scheme netted SAC more than $31 million in fraudulently obtained contract payments.

As a result of Hedman’s criminal plea, he was sentenced to 72 months in prison, two years of supervised release, and was ordered to forfeit approximately $6.1 million and pay a $15,000 fine.

As part of the civil settlement, Hedman has agreed to pay $4.5 million to resolve allegations under the False Claims Act and other related statutory and common law remedies arising from the fraudulent scheme. The civil claims settled by Hedman and the United States are allegations only. There has been no determination of civil liability.
The resolutions obtained in this matter were the result of a coordinated investigation by the Civil and Criminal Divisions of the U.S. Attorney’s Office for the Eastern District of Virginia, and the Civil Division of the Department of Justice. The civil matter was investigated by Assistant U.S. Attorney Peter Hyun and DOJ Trial Attorney Allison Cendali. The criminal case was prosecuted by Assistant U.S. Attorneys Chad Golder and Ryan Faulconer, a former Trial Attorney for the Criminal Division’s Fraud Section.

This case was investigated by National Aeronautics and Space Administration, Office of the Inspector General (OIG), the SBA -OIG, Defense Criminal Investigative Service-OIG, General Services Administration-OIG, and Department of Homeland Security-OIG, with assistance from the Defense Contract Audit Agency.

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RICHMOND, Va. – Brenda Ann Blair, 36, of Bonita Springs, Florida, formerly of Goochland County, Virginia, pleaded guilty today to participating in a fraud scheme that obtained approximately $2.4 million worth of mortgage loans from federally backed financial institutions. 
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Cary Rubenstein, Special Agent in Charge, Mid Atlantic Region of the Office of Inspector General of HUD; Gary Barksdale, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Adam S. Lee, Special Agent in Charge of the Richmond Division of the FBI, made the announcement after the plea was accepted by U.S. Magistrate Judge David J. Novak.

Blair, who was charged in a Criminal Information on December 4, 2014, faces a maximum penalty of 30 years in prison when she is sentenced on March 17, 2015, by United States District Judge James R. Spencer.  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, Blair admitted that she participated with others in a scheme from 2006 to 2008 to fraudulently obtain $2.42 million worth of mortgage backed loans from Washington Mutual Bank, SunTrust Bank, Fannie Mae and Freddie Mac.  The mortgage loans were obtained in approximately 16 different real estate transactions, and produced actual losses of approximately $916,700.  This scheme also defrauded HUD, which lost an additional $63,964, for a total loss of $980,664.

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

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

This case was investigated by the Office of the Inspector General of HUD, the U.S. Postal Inspection Service and the FBI. Assistant U.S. Attorney David T. Maguire 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. 3:14-cr-172.

ALEXANDRIA, Va. – Miguel Arnulfo Valle Valle, 42 and his brother, Luis Alonso Valle Valle, 45, both Honduran nationals, were extradited yesterday from Honduras to face federal criminal charges in the Eastern District of Virginia and the Southern District of Florida.  On June 19, 2014, a federal grand jury in the Eastern District of Virginia returned a superseding indictment charging the brothers and 13 other individuals with committing drug and money laundering crimes from 2005 through June 2014.

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 Washington Field Division; and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the defendants’ initial appearance before U.S. District Judge Ivan Davis.

“As leaders of one of the world’s largest drug trafficking organizations, the Valle Valle brothers are responsible for importing tons of cocaine into the United States each year,” said U.S. Attorney Boente. “Their arrest and extradition is the result of terrific work by our investigating agencies and respective federal governments. I would like to thank the President of the Honduran Republic, Juan Orlando Hernàndez Alvarado, for the assistance and cooperation of the Honduran government during this investigation.”
“The success of this international investigation is a great example of coordination and cooperation between the DEA, FBI, Virginia State Police, and the Government of Honduras” said DEA Special Agent in Charge Colder.  “We look forward to the continued Bi-lateral cooperation in addressing the significant threat of these international drug trafficking organizations.”

“The arrest and extradition of these Honduran drug kingpins is a major step in the international cooperation to combat international narcotics traffickers,” said Assistant Director in Charge McCabe.  “Special Agents and intelligence analysts at the FBI Washington Field Office in coordination with DEA, Fairfax County Police Department and our counterparts in Honduras worked diligently to investigate this case and bring these two to the United States to face justice.”

Both defendants face 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 defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

According to court documents, the defendants lead one of the largest drug trafficking organizations in Honduras, the “VALLE DTO”, responsible for the importation and distribution of multi-ton quantities of cocaine into the United States, valued at millions of dollars.  Honduras is a major transit country for Colombian cocaine and other controlled substances.  The VALLE DTO is based in Copan, located in the northwest region of the country along the border of Guatemala.  The defendants worked with other members of their organization to transport cocaine from Honduras through Guatemala to Mexico, and into the United States.  Additionally, members of the VALLE DTO sent smaller quantities of cocaine directly into the Eastern District of Virginia, and other parts of the United States, using human couriers.

Drug proceeds were laundered from the United States and elsewhere to members of the VALLE DTO in Honduras through wire transfers, bulk cash payments, and deposits into Honduran banking institutions.  The VALLE DTO relied on violence and public corruption to further the objectives of the organization.

On August 20, 2014, the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) designated the VALLE DTO, or the “Los Valles Drug Trafficking Organization,” and the defendants individually, under the Kingpin Act as significant foreign narcotics traffickers.

This case was investigated by the DEA, FBI Washington Field Office, Fairfax County Police Department, and the Virginia State Police as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation “Javelin.” 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.

Mr. Boente would like thank the Office of International Affairs, Criminal Division, U.S. Department of Justice; the FBI’s Washington Field Office; the DEA’s Tegucigalpa Country Office in Tegucigalpa, Honduras; the Fairfax County Police Department; and the Virginia State Police for their efforts 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.  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-135.

NORFOLK, Va. – Eric Kevin Downey, 35, of Norfolk, Virginia, pleaded guilty today to charges of receipt of child pornography.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Special Agent in Charge Clark Settles of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington office, made the announcement after the plea was presented to United States Magistrate Judge Douglas E. Miller.

Downey was indicted by a federal grand jury on November 5, 2014. Downey faces a mandatory minimum of 5 years and a maximum penalty of 20 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.

According to a statement of facts filed with the plea agreement, Downey was identified when it was discovered that he had been surreptitiously filming a minor while she was drying off in a shower.  Not only had he engaged in filming the minor, he also had been collecting images of minors engaged in sexually explicit activity from the Internet.  Downey admitted he had been collecting these images since approximately 1999 or 2000.  He will be sentenced on March 30, 2015.

This case was investigated by Homeland Security Investigations and Norfolk Police Department. Assistant U.S. Attorney Elizabeth M. Yusi 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. 2:14-cr-145.

RICHMOND, Va. – Jeannetta Matthews, 27, of Upper Darby, Pennsylvania, was sentenced today to 24 months in prison, followed by 3 years of supervised release, for conspiracy to commit bank fraud.  She was also ordered to pay $457,967 in restitution to Wells Fargo Bank.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Douglas F. Mease, Special Agent in Charge of the United States Secret Service, Richmond Field Office, made the announcement after sentencing by Senior U.S. District Judge Robert E. Payne.

Matthews pleaded guilty on July 31, 2014. According to court documents, Matthews was a Customer Sales and Service Representative at a Wells Fargo bank branch in Bala Cynwyd, Pennsylvania.  In October 2012, she agreed to use her position at the bank to access and sell customer account and personal identifying information for a fee of approximately $7,000.  Between October and December 2012, Matthews accessed the accounts of and sold information related to over 20 Wells Fargo customers, to include account numbers, social security numbers, and dates of birth.  Using the information provided by Matthews, co-conspirators obtained false identification documents and credit cards in the names of the customers and impersonated the customers at Wells Fargo branches in Virginia, South Carolina, California, Georgia, and New Jersey.  As a result of the scheme, co-conspirators withdrew over $450,000 from customer accounts between November 2012 and February 2013. 

Two other co-conspirators, Anthony Romey Carter, of Elk Grove, California; and Jacquis Depree Nelson, of Atlanta, Georgia, were previously sentenced to 61 months and 51 months in prison, respectively, for their roles in the scheme. 

This case was investigated by the United States Secret Service.  Assistant U.S. Attorney Dominick S. Gerace 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. 3:14CR00094.

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ALEXANDRIA, Va. – Three Colombian nationals were sentenced today for their roles in the kidnapping and murder of Drug Enforcement Administration (DEA) Special Agent James “Terry” Watson in Bogota, Colombia, on June 20, 2013.

Attorney General Eric H. Holder, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, DEA Administrator Michele M. Leonhart and Director Bill A. Miller of the State Department’s Diplomatic Security Service (DSS) made the announcement.

“Throughout his law enforcement career, Special Agent Watson’s service was both selfless and courageous,” said Attorney General Eric Holder.  “With this action, we continue our work to hold accountable those who were responsible for his murder.  In the weeks ahead, we expect to take additional steps to bring the perpetrators to justice.  And in all that we do, our nation's Department of Justice will continue to honor Special Agent Watson’s sacrifice, to safeguard the nation he served, and to protect the values and principles he defended all his life.”

“Special Agent Watson’s kidnapping and murder is a tragic reminder of the dangers that exist for Americans abroad,” said U.S. Attorney Boente. “The sentences delivered today are also a reminder. They are a reminder of the commitment of the Justice Department, this office, and our investigative partners to protect and defend Americans abroad who are victims of crime. We will continue to press forward in this case until all those responsible have been brought to justice.”

“DEA will never forget the sacrifice of Special Agent Terry Watson, nor will we rest until those responsible for his kidnapping and murder are brought to justice for this horrific act,” said DEA Administrator Leonhart.  “While this is certainly not the final step, we are pleased that another criminal facilitator in this awful tragedy is answering for his actions in a U.S. courtroom.”

Hector Leonardo Lopez, 34, Julio Estiven Gracia Ramirez, 32, and Andres Alvaro Oviedo Garcia, 22, previously pleaded guilty to aiding and abetting the murder of an internationally protected person and conspiracy to kidnap an internationally protected person.  Today, U.S. District Judge Gerald Bruce Lee sentenced Lopez to 25 years in prison, Gracia Ramirez to 27 years in prison, and Oviedo Garcia to 20 years in prison. Each also was sentenced to five years of supervised release.

In addition, today, Wilson Daniel Peralta-Bocachica, 31, pleaded guilty to obstruction of justice and, on Dec. 9, 2014, Edwin Gerardo Figueroa Sepulveda, 39, pleaded guilty to aiding and abetting the murder of an internationally protected person and conspiracy to kidnap an internationally protected person.  Sentencing hearings for Peralta-Bocachica and Figueroa Sepulveda are scheduled for Feb. 18, 2015.

In the statements of facts filed with the plea agreements, Lopez, Gracia Ramirez, Oviedo Garcia, and Figueroa Sepulveda admitted that they conspired to conduct “paseo milionarios” or “millionaire’s rides” in Bogota, Colombia in which victims were lured into taxi cabs, kidnapped and then robbed.  They admitted that on the evening of June 20, 2013, they were part of a group that targeted Special Agent Watson.  Gracia Ramirez drove the taxi that picked up Special Agent Watson, Lopez drove the second taxi that was used to carry the assailants, and Figueroa Sepulveda entered the taxi carrying Special Agent Watson and shocked him with a stun gun while another defendant stabbed him.  Special Agent Watson was able to escape from the taxi, but he later collapsed and died from his injuries.  Oviedo Garcia was part of the group that attacked Special Agent Watson, however, shortly before Special Agent Watson was targeted a third taxi encountered mechanical issues and Oviedo Garcia stayed with the disabled taxi.  In the days following the kidnapping and murder, Peralta-Bocachica washed the taxi in which Special Agent Watson was stabbed, removing blood from the back seat of the taxi and discarding the rags that were used to clean the taxi before turning the taxi over to the Colombian National Police.

Two other defendants were charged in this case for their alleged involvement in the murder of Special Agent Watson.  Omar Fabian Valdes Gualtero, 27, and Edgar Javier Bello Murillo, 27, are charged by indictment with second degree murder, kidnapping and conspiracy to kidnap.  Trial for the remaining defendants is set for Jan. 12, 2015.

The charges in the indictment against the other defendants are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

This case was investigated by the FBI, DEA and DSS, in close cooperation with Colombian authorities and with assistance from INTERPOL and the Justice Department’s Office of International Affairs.  The case is being prosecuted by Special Counsel Stacey Luck of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Michael P. Ben’Ary of the U.S. Attorney’s Office for the Eastern District of Virginia.

The Department of Justice gratefully acknowledges the Colombian Attorney General’s Office, Colombian National Police, Colombian Directorate of Criminal Investigation and Interpol (DIJIN), DIJIN Special Investigative Unit, Bogotà Metropolitan Police, Bogotà Police Intelligence Body (CIPOL) Unit and Colombian Technical Investigation Team for their extraordinary efforts, support and professionalism in responding to this incident.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER.

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ALEXANDRIA, Va. – Three Colombian nationals were sentenced today for their roles in the kidnapping and murder of Drug Enforcement Administration (DEA) Special Agent James “Terry” Watson in Bogota, Colombia, on June 20, 2013.

Attorney General Eric H. Holder, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, DEA Administrator Michele M. Leonhart and Director Bill A. Miller of the State Department’s Diplomatic Security Service (DSS) made the announcement.

“Throughout his law enforcement career, Special Agent Watson’s service was both selfless and courageous,” said Attorney General Eric Holder.  “With this action, we continue our work to hold accountable those who were responsible for his murder.  In the weeks ahead, we expect to take additional steps to bring the perpetrators to justice.  And in all that we do, our nation's Department of Justice will continue to honor Special Agent Watson’s sacrifice, to safeguard the nation he served, and to protect the values and principles he defended all his life.”

“Special Agent Watson’s kidnapping and murder is a tragic reminder of the dangers that exist for Americans abroad,” said U.S. Attorney Boente. “The sentences delivered today are also a reminder. They are a reminder of the commitment of the Justice Department, this office, and our investigative partners to protect and defend Americans abroad who are victims of crime. We will continue to press forward in this case until all those responsible have been brought to justice.”

“DEA will never forget the sacrifice of Special Agent Terry Watson, nor will we rest until those responsible for his kidnapping and murder are brought to justice for this horrific act,” said DEA Administrator Leonhart.  “While this is certainly not the final step, we are pleased that another criminal facilitator in this awful tragedy is answering for his actions in a U.S. courtroom.”

Hector Leonardo Lopez, 34, Julio Estiven Gracia Ramirez, 32, and Andres Alvaro Oviedo Garcia, 22, previously pleaded guilty to aiding and abetting the murder of an internationally protected person and conspiracy to kidnap an internationally protected person.  Today, U.S. District Judge Gerald Bruce Lee sentenced Lopez to 25 years in prison, Gracia Ramirez to 27 years in prison, and Oviedo Garcia to 20 years in prison. Each also was sentenced to five years of supervised release.

In addition, today, Wilson Daniel Peralta-Bocachica, 31, pleaded guilty to obstruction of justice and, on Dec. 9, 2014, Edwin Gerardo Figueroa Sepulveda, 39, pleaded guilty to aiding and abetting the murder of an internationally protected person and conspiracy to kidnap an internationally protected person.  Sentencing hearings for Peralta-Bocachica and Figueroa Sepulveda are scheduled for Feb. 18, 2015.

In the statements of facts filed with the plea agreements, Lopez, Gracia Ramirez, Oviedo Garcia, and Figueroa Sepulveda admitted that they conspired to conduct “paseo milionarios” or “millionaire’s rides” in Bogota, Colombia in which victims were lured into taxi cabs, kidnapped and then robbed.  They admitted that on the evening of June 20, 2013, they were part of a group that targeted Special Agent Watson.  Gracia Ramirez drove the taxi that picked up Special Agent Watson, Lopez drove the second taxi that was used to carry the assailants, and Figueroa Sepulveda entered the taxi carrying Special Agent Watson and shocked him with a stun gun while another defendant stabbed him.  Special Agent Watson was able to escape from the taxi, but he later collapsed and died from his injuries.  Oviedo Garcia was part of the group that attacked Special Agent Watson, however, shortly before Special Agent Watson was targeted a third taxi encountered mechanical issues and Oviedo Garcia stayed with the disabled taxi.  In the days following the kidnapping and murder, Peralta-Bocachica washed the taxi in which Special Agent Watson was stabbed, removing blood from the back seat of the taxi and discarding the rags that were used to clean the taxi before turning the taxi over to the Colombian National Police.

Two other defendants were charged in this case for their alleged involvement in the murder of Special Agent Watson.  Omar Fabian Valdes Gualtero, 27, and Edgar Javier Bello Murillo, 27, are charged by indictment with second degree murder, kidnapping and conspiracy to kidnap.  Trial for the remaining defendants is set for Jan. 12, 2015.

The charges in the indictment against the other defendants are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

This case was investigated by the FBI, DEA and DSS, in close cooperation with Colombian authorities and with assistance from INTERPOL and the Justice Department’s Office of International Affairs.  The case is being prosecuted by Special Counsel Stacey Luck of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Michael P. Ben’Ary of the U.S. Attorney’s Office for the Eastern District of Virginia.

The Department of Justice gratefully acknowledges the Colombian Attorney General’s Office, Colombian National Police, Colombian Directorate of Criminal Investigation and Interpol (DIJIN), DIJIN Special Investigative Unit, Bogotà Metropolitan Police, Bogotà Police Intelligence Body (CIPOL) Unit and Colombian Technical Investigation Team for their extraordinary efforts, support and professionalism in responding to this incident.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER.

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