Eastern District of Virginia

NORFOLK, Va. –Shawn Butler, a/k/a “Dickie,” 39 , of Portsmouth, Virginia, was sentenced today to 170 months in prison, followed by 8 years of supervised release for heroin distribution.
Dana J. Boente, United States Attorney for the Eastern District of Virginia and Karl C. Colder, Special Agent in Charge for Drug Enforcement Administration’s Washington Division Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.
According to court documents, Butler is the leader of a heroin trafficking organization out of Portsmouth, Virginia.  Butler, who has been dealing narcotics since 2005, began selling heroin in 2008.  In 2008, he began referring customers to other dealers whom he was supplying.  Butler and his co-conspirators distributed use amounts of cocaine and heroin to multiple individuals in the Tidewater area between 2008 and 2013.  Butler had a courier who transported heroin from New Jersey to the Tidewater area. He also used multiple street level dealers to push his product out into location communities.

Butler was indicted by a federal grand jury on January 9, 2014 and pleaded guilty to conspiracy to distribute 100 grams or more of heroin on May 12, 2014.
This case was investigated by the Drug Enforcement Administration.  Special Assistant U.S. Attorney Amy Cross 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-11.

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ALEXANDRIA, Va. – Lorene Chittenden, 57, of Centreville, Va., was sentenced today to 42 monthsin prison, followed by three years of supervised release, for conspiracy to commit bank fraud and related charges arising from a multi-million dollar mortgage fraud scheme.  
The amounts in restitution and forfeiture that Chittenden will pay will be determined at a later hearing.  More than $1 million dollars in bank accounts belonging to Chittenden were seized by law enforcement agents when the charges were first filed. 

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; and Fred W. Gibson, Principal Deputy Inspector General for the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General made the announcement after sentencing by U.S. District Judge Liam O’Grady.

Chittendenwas found guilty after a six-day jury trial on May 7, 2014.  According to court documents, Chittenden and her co-conspirators were responsible for over $15 million in losses to various lending institutions that purchased fraudulent loans that Chittenden originated as a loan officer at George Mason Mortgage, a subsidiary of federally-insured Cardinal Bank.  The defendant and her co-conspirators from Manassas, Va., real estate firm Vilchez & Associates, fraudulently inflated the income and assets of their clients to obtain mortgage loans in amounts that the clients were wholly unqualified for.  Chittenden earned hundreds of thousands of dollars in loan commissions from the fraud, while ringleader Rosita Vilchez pocketed millions of dollars in real estate commissions.  The Vilchez conspiracy targeted hundreds of non-English-speaking members of the northern Virginia Hispanic community who were not able to read the loan applications and closing documents they were asked to sign.  Often the amount of the monthly mortgage payments was unknown or even misrepresented to the borrowers.  Vilchez was recently arrested in Peru where she had been a fugitive.  Her brother, Armando Pino, who was also a realtor at Vilchez & Associates, was arrested in Peru in December 2012.  Both Vilchez and Pino are fighting extradition to the United States to face charges.

This case was investigated by the FBI’s Washington Field Office and the FDIC Office of Inspector General.  Assistant U.S. Attorneys James P. Gillis and Julia K. Martinez 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. 1:12-cr-00394.

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RICHMOND, Va. – Dane Scott Mihlon, 25, of King George County, Va., pled guilty today to using the internet on his cellular phone to entice or attempt to entice at least 6 minors to produce child pornography.

Dana J. Boente, United States 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. 

Mihlon was charged in a criminal information on October 2, 2014, with a single count of enticement of a minor, in violation of 18 U.S.C. § 2422(b).  He faces a maximum penalty of life imprisonment when he is sentenced on January 14, 2015.

In a statement of facts filed with his plea agreement, Mihlon admitted to contacting 6 juvenile females through various cellular phone applications and enticing or attempting to entice them to produce sexually explicit pictures of themselves and send them to him over the internet.  His victims ranged in age from 12 to 16 years old and were located across the country.  On one occasion, Mihlon convinced a 15 year old victim living in Oregon to produce and send him over the internet at least five sexually explicit pictures.     

This case was investigated by the Federal Bureau of Investigation.  Assistant United States Attorney Erik S. Siebert 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-098.

NORFOLK, Va. – Kevin D. Jackson, age 35, of Norfolk, Va., pleaded guilty yesterday to receipt of child pornography.

Dana J. Boente, United States 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 United States Magistrate Judge Douglas Miller.

A Norfolk federal grand jury indicted Jackson on June 19, 2014, on four counts relating to child pornography. As a result of his guilty plea, Jackson faces a mandatory minimum sentence of five years of incarceration when he is sentenced on February 2, 2015.

According to the statement of facts filed with the plea agreement, Jackson had 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.

This case was investigated by the FBI.  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 United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.

ALEXANDRIA, Va. – Roger Mina-Cuero, 29, a Colombian national, was sentenced today to three years in prison, followed by three years of supervised release, for interstate transportation of Stolen Property and Illegal Reentry to the United States by a removed alien.  Mina-Cuero’s sentence also included restitution in the amount of $371,760 and forfeiture in the amount of $311,340.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, made the announcement after sentencing by U.S. District Judge James C. Cacheris.

Mina-Cuero pleaded guilty on June 23, 2014.  According to court documents, Mina-Cuero was part of aColumbian burglary crew based in Houston, Texas, that traveled as far as Virginia and Maryland to conduct at least 12 residential burglaries in which they stole jewelry, cash and electronic items.  The co-conspirators cased neighborhoods to identify residences where no one was home, then broke windows in the rear of the houses to gain entry.  Mina-Cuero and his co-conspirators brought stolen jewelry and cash from the burglaries back to Houston for sale and forwarded some of the proceeds of the burglaries to Columbia.

This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations directorate in cooperation with police departments in Montgomery County and Howard County, Maryland; and Loudon County, Virginia. Assistant U.S. Attorney Kimberly Riley Pedersen and Special Assistant United States Attorney Christopher Van Horne prosecuted the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-131.

NORFOLK, Va. – Nina Renee Calderon, 23, of Portsmouth, Virginia, was sentenced today to 15 years in prison, followed by lifetime supervised release, for production of child pornography.

Dana J. Boente, United States Attorney for the Eastern District of Virginia and Clark Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C., Field Office, made the announcement after sentencing by U.S. District Judge Robert G. Doumar.

Calderon pleaded guilty on May 7, 2014.  According to court documents, Calderon became involved in a conspiracy to produce child pornography when she was contacted by coconspirator Robert Harold Scott, Jr. under his assumed online identity of “Mike Pyro.”  Scott would routinely communicate with women in and around the Tidewater area to set up “sex parties,” where the women would work as prostitutes and Scott would pay them for their services.  In reality, Scott would not pay them and, at times, extort the women by threatening to publish sexually explicit videos they had created for the promise of additional money.  In addition to the adult parties, Scott was found to be conspiring with and producing child pornography with several different women, including Calderon.  Law enforcement found that, when discussing the sex parties, sometimes Scott would request these women to produce child pornography and was very specific as to the sex acts he wanted done on camera.  Calderon complied in return for the promise of money.  Specifically, Calderon produced child pornography with a 2 year old female child. 
This case was investigated by Homeland Security Investigations.  Assistant U.S. Attorney Elizabeth M. Yusi prosecuted the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:13-cr-164.

NORFOLK, Va. –Travis Hager, 24, of Norfolk, Virginia, was sentenced today to 54 months in prison, followed by five years of supervised release, following his guilty plea on June 4, 2014, for wire fraud and false claims against the United States.

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, IRS-Criminal Investigations, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.

According to court documents, Travis Hager, along with his co-conspirator Donte Demus, stole the identities of individuals and used them to file false federal income tax returns.  While incarcerated in a Virginia Beach jail, Hager stole the identities of a number of fellow inmates and provided them to Demus by using the jail’s phone system.  Demus then provided the identities to a third unidentified accomplice who filed the false returns.  The conspirators would request the tax refund be loaded on a prepaid debit card and mailed to Norfolk, Virginia where Demus would retrieve them and spend the funds.  In total, Hager, Demus, and their accomplice claimed fraudulent tax refunds from the U.S. Government in the amount of $163,953.

Donte Demus pleaded guilty on September 3, 2014 and is scheduled to be sentenced on December 4, 2014.

This case was investigated by Internal Revenue Service-Criminal Investigations.  Assistant U.S. Attorney Joseph Kosky prosecuted the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-43.

WASHINGTON – Four retired and one active-duty Army National Guard officials and one civilian have been charged for their alleged participation in bribery schemes related to the awarding of millions of dollars of Army National Guard marketing, retention and recruitment contracts.  Two of the retired Army National Guard officials and the civilian pleaded guilty for their roles in the schemes.

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, U.S. Attorney Loretta E. Lynch of the Eastern District of New York, Assistant Director in Charge Andrew McCabe of the FBI’s Washington Field Office, Special Agent in Charge Robert E. Craig Jr. of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office and Director Frank Robey of the U.S. Army Criminal Investigative Command’s Major Procurement Fraud Unit (Army-CID) made the announcement.

“As captured by its motto, the Army National Guard is ‘always ready, always there’ for the American people,” said Assistant Attorney General Caldwell.  “Unfortunately, today’s charges expose National Guard officials who were ‘always ready’ to pocket bribes and ‘always there’ to take kickbacks.  In return, the charged officials allegedly subverted the open bidding process and illegally steered millions of taxpayer dollars to the bribe-payers through marketing and advertising contracts.  Corruption should know no place in American government, but least of all in the military that so honorably serves our country.  The Criminal Division is committed to rooting out corruption wherever we find it, including in the military, so that we can ensure that no one is putting the public’s trust up for sale.”

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

“This investigation has sadly reminded us that even some members of our military are willing to trade on the trust their country placed in them to line their pockets with the profits of corrupt activities,” said U.S. Attorney Lynch.  “We and our law enforcement partners will constantly guard against and root out such corruption wherever we find it.”
Charles Sines, 56, of Stafford, Virginia, a retired colonel from the United States Army National Guard; Wesley Russell, 48, of Albany, Indiana, a retired lieutenant colonel from the Indiana Army National Guard; and Jason Rappoccio, 39, of Hampton, South Carolina, an active-duty sergeant first class from the Army National Guard are charged with conspiracy to solicit bribes and the solicitation of bribes.  Russell and Rappoccio allegedly asked for and received bribes, and Sines allegedly provided bribes.

Robert Porter, 50 of Columbia, Maryland, a retired colonel from the Army National Guard, and Timothy Bebus, 44, of Forest Lake, Minnesota, a retired sergeant major of the Minnesota Army National Guard and owner of Mil-Team Consulting and Solutions LLC, each pleaded guilty in the Eastern District of Virginia in September 2014 to conspiracy to commit bribery and bribery of a public official.  Julianne Hubbell, 45, of Brooklyn Park, Minnesota, a civilian who partnered with her brother, Bebus, as the vice president of operations of Mil-Team, also pleaded guilty in September 2014 to conspiracy to commit bribery.  Sentencing hearings for Bebus and Hubbell are scheduled for Jan. 23, 2015, and for Porter on Jan. 30, 2015.

“The alleged steering of large government contracts is offensive to active duty, reserve and retired members of the National Guard Bureau who took an oath to support and defend the Constitution,” said FBI Assistant Director in Charge McCabe.  “It is also offensive to average American citizens who trust their government and its contractors to use taxpayer money wisely.  We urge anyone who has knowledge of corruption and abuse in federal government contracting to contact the FBI.”

“The Department of Defense places special trust and confidence in its service members, particularly those in positions to influence the expenditure of taxpayer dollars,” said DCIS Special Agent in Charge Craig.  “Guardsmen hold a unique position in our society, representing both their state and military service.  The alleged behavior uncovered in this investigation was a disservice to both, but in no way typical of those honorable women and men that serve in our Army and Air National Guard.  Identifying and investigating fraud and public corruption remains the highest of priorities for the Defense Criminal Investigative Service.  Alongside our law enforcement partners, we will continue to aggressively pursue allegations of fraud impacting Department of Defense resources.”

“We have highly-trained, Army CID special agents who are extremely talented and very capable of rooting out this type of corruption within our ranks,” said Army-CID Director Robey.   “People must realize, both in and out of uniform, that fraud will not be tolerated within the Army and Department of Defense, and greed cannot and will not trump duty and honor.”

As set forth in the indictments and other publicly-filed documents, the National Guard Bureau is a joint activity of the U.S. Department of Defense (DOD), state Army National Guard units and the Departments of the Army and Air Force.  The National Guard Bureau, located in Arlington, Virginia, oversees the distribution of federal funding provided to the Army National Guard and its state units.

The DOD provides millions of dollars of federal funds to the Army National Guard for, among other things, advertising, marketing and sponsorships in order to recruit new members.  The National Guard Bureau uses these funds to promote the Army National Guard by entering into advertising, marketing and sponsorship contracts.  For example, through advertising, marketing and sponsorship contracts, the National Guard was an official sponsor of Dew Tour, Warrior Dash, and American Motorcycle Association Supercross’s events, where recruiters handed out promotional items and recruited new members.  The National Guard also had a contract to sponsor Michael Jordan’s AMA Superbike team.

The National Guard Bureau can avoid a competitive bid process by awarding these federally-funded marketing contracts to Small Business Administration (SBA) certified 8(a) companies, which are minority-owned businesses.  The National Guard Bureau also provides a portion of the federal funds to the state units to allocate. 

The indictments allege that Sines and Rappoccio evaded the competitive bid process by using 8(a) companies to award contracts in exchange for bribes. 

According to allegations in the indictment against him, Sines founded a company, Financial Solutions, after retiring from the Army National Guard as a colonel.  Sines allegedly paid Porter, a then-active-duty colonel in the Army National Guard, a percentage of all contracts that Porter steered to Financial Solutions through 8(a) companies.  As the director of the National Guard Bureau’s Guard Strength Directorate, Porter had substantial influence over the awarding of National Guard Bureau contracts, and allegedly steered approximately $4.5 million worth of contracts to Sines and Financial Solutions.

The indictment against Russell alleges that, while on active duty as a lieutenant colonel in the Indiana Army National Guard, Russell demanded 15 percent of all profits that a private marketing company would receive from state Army National Guard units.  In return for his 15 percent cut of the profits, Russell allegedly promoted and encouraged state Army National Guard units to purchase the marketing company’s products. 

The indictment against Rappoccio, an active-duty sergeant first class in the Army National Guard, alleges that Bebus and Hubbell paid Rappoccio a $30,000 bribe for steering a contract worth approximately $3.7 million to an 8(a) company chosen by Bebus.  In pleading guilty, Bebus and Hubbell admitted to paying this bribe.  In an effort to conceal the bribe payment, Bebus, Hubbell and others allegedly arranged for the payment of $6,000 in cash to Rappoccio, and the remaining $24,000 was allegedly routed from a business account controlled by Hubbell to an account controlled by Bebus and Hubbell’s brother-in-law, and then provided to Rappoccio in the form of a cashier’s check to Rappoccio’s wife. 

An indictment is merely an allegation, and the defendants are presumed innocent unless and until proven guilty.

The case is being investigated by the FBI’s Washington Field Office, with assistance from DCIS’s Mid-Atlantic Field Office and Army-CID’s Expeditionary Fraud Resident Agency’s Major Procurement Fraud Unit.  The case is being prosecuted by Trial Attorney Alison L. Anderson of the Criminal Division’s Fraud Section, Assistant U.S. Attorney Jonathan Fahey of the Eastern District of Virginia and Assistant U.S. Attorneys Marisa Seifan and Martin Coffey of the Eastern District of New York.

Allegations of bribery or corruption within the National Guard Bureau’s retention and recruitment contracting can be reported to the FBI’s Washington Field Office at (202) 278-2000 or the FBI’s Northern Virginia Public Corruption Hotline at (703) 686-6225.

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WASHINGTON – A Pakistani man has been indicted in the Eastern District of Virginia for allegedly conspiring to advertise and sell StealthGenie, a spyware application (app) that could monitor calls, texts, videos and other communications on mobile phones without detection.  This marks the first-ever criminal case concerning the advertisement and sale of a mobile device spyware app. 

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

“Selling spyware is not just reprehensible, it’s a crime,” said Assistant Attorney General Caldwell.  “Apps like StealthGenie are expressly designed for use by stalkers and domestic abusers who want to know every detail of a victim’s personal life – all without the victim’s knowledge.  The Criminal Division is committed to cracking down on those who seek to profit from technology designed and used to commit brazen invasions of individual privacy.”

“StealthGenie has little use beyond invading a victim’s privacy” said U.S. Attorney Boente.  “Advertising and selling spyware technology is a criminal offense, and such conduct will be aggressively pursued by this office and our law enforcement partners.”   

“This application allegedly equips potential stalkers and criminals with a means to invade an individual’s confidential communications,” said FBI Assistant Director in Charge McCabe.  “They do this not by breaking into their homes or offices, but by physically installing spyware on unwitting victim’s phones and illegally tracking an individual’s every move.  As technology continues to evolve, the FBI will investigate and bring to justice those who use illegal means to monitor and track individuals without their knowledge.”

According to allegations in the indictment, Hammad Akbar, 31, of Lahore, Pakistan, is the chief executive officer of InvoCode Pvt Ltd, the company that advertises and sells StealthGenie online.  Akbar and his co-conspirators allegedly created the spyware, which could intercept communications to and from mobile phones, including Apple’s iPhone, Google’s Android, and Blackberry Limited’s Blackberry.  StealthGenie was undetectable by most users and was advertised as being untraceable. 
Akbar was charged in the indictment with conspiracy, sale of a surreptitious interception device, advertisement of a known interception device and advertising a device as a surreptitious interception device.  He was arrested in Los Angeles on Sept. 27, 2014, and is expected to appear before a magistrate judge in the Central District of California later today.

StealthGenie was hosted at a data center in Ashburn, Virginia.  On Sept. 26, 2014, a federal judge in the Eastern District of Virginia issued a temporary restraining order authorizing the FBI to temporarily disable the website hosting StealthGenie.

The indictment alleges that StealthGenie’s capabilities included the following: it recorded all incoming/outgoing voice calls; it intercepted calls on the phone to be monitored while they take place; it allowed the purchaser to call the phone and activate it at any time to monitor all surrounding conversations within a 15-foot radius; and it allowed the purchaser to monitor the user’s incoming and outgoing e-mail messages and SMS messages, incoming voicemail messages, address book, calendar, photographs, and videos.  All of these functions were enabled without the knowledge of the user of the phone.

Akbar and his co-conspirators allegedly programmed StealthGenie to synchronize communications intercepted by the app with the customer’s account so that the customer could review intercepted communications almost immediately from any computer with access to the Internet.  To install the app, a purchaser needed to obtain physical control over the phone to be monitored for only a few minutes.  The purchaser could then review communications intercepted from the monitored phone without ever again having physical control over the phone.  Akbar and others alleged designed SteathGenie to be undetectable to users of the phone.

According to allegations in the indictment, the business plan for the development, sale and advertisement of StealthGenie stated that the target population for the marketing of the app was “[s]pousal cheat: Husband/Wife of (sic) boyfriend/girlfriend suspecting their other half of cheating or any other suspicious behaviour or if they just want to monitor them.”  Language and testimonials on the StealthGenie website focused significantly on potential purchasers who did not have any ownership interest in the mobile phone to be monitored, including those suspecting a spouse or romantic partner of infidelity.  The indictment alleges that Akbar and his co-conspirators fabricated the testimonials.  

An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty in a court of law.

This case is being investigated by the FBI’s Washington Field Office, and prosecuted by Trial Attorneys William A. Hall Jr. and Peter V. Roman of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Jay V. Prabhu of the Eastern District of Virginia.

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ALEXANDRIA, Va. – Othaniel D. Gaither, 25, of Washington, D.C., was sentenced today to 78 months in prison followed by three years of supervised release, for acquiring an assault rifle and semi-automatic pistol, attempting to evade police during a high speed chase and ramming two law enforcement vehicles. 

Dana J. Boente, United States Attorney for the Eastern District of Virginia, and Charles E. Smith, Special Agent in Charge of the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga.

Gaither pleaded guilty on July 8, 2014, to being a felon in possession of a firearm.  According to court documents, Gaither, who was previously convicted of robbery with a dangerous weapon, utilized a female acquaintance to fraudulently acquire (straw purchase) two firearms from a federal firearms dealer in Northern Virginia.  Gaither provided his female companion with over $1,000 which she used to obtain both a semi-automatic AK-47 style rifle and a semi-automatic pistol on his behalf.  Following the purchase, Gaither took possession of both firearms. 

Gaither, despite being a felon, independently purchased over 125 rounds of ammunition as well as a kit that converts a signal flare device into a handgun that fires 12 gauge shotgun shells.  After obtaining the three firearms and ammunition, Gaither, who was being survielled by ATF agents, attempted to evade arrest by traveling at a high rate of speed through a densely populated area. He was ultimately stopped by ATF agents near the Pentagon City Mall in Arlington, Virginia.  Upon being pulled over, Gaither first attempted to drive away, when that proved fruitless he intentionally rammed two law enforcement vehicles, effectively totaling them both.  Following his ramming of the vehicles, Gaither was arrested and the firearms and ammunition were confiscated. As part of his sentence he was required to forfeit the three firearms he illegally acquired and possessed.

This case was investigated by the Falls Church Field Office of the ATF Washington Field Division. Assistant U.S. Attorney G. Zachary Terwilliger prosecuted the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-234.

ALEXANDRIA, Va. – Othaniel D. Gaither, 25, of Washington, D.C., was sentenced today to 78 months in prison followed by three years of supervised release, for acquiring an assault rifle and semi-automatic pistol, attempting to evade police during a high speed chase and ramming two law enforcement vehicles.

Dana J. Boente, United States Attorney for the Eastern District of Virginia, and Charles E. Smith, Special Agent in Charge of the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga.

Gaither pleaded guilty on July 8, 2014, to being a felon in possession of a firearm.  According to court documents, Gaither, who was previously convicted of robbery with a dangerous weapon, utilized a female acquaintance to fraudulently acquire (straw purchase) two firearms from a firearms dealer in Northern Virginia.  Gaither provided his female companion with over $1,000 which she used to obtain both a semi-automatic AK-47 style rifle and a semi-automatic pistol on his behalf.  Following the purchase, Gaither took possession of both firearms.

Gaither, despite being a felon, independently purchased over 125 rounds of ammunition as well as a kit that converts a signal flare device into a handgun that fires 12 gauge shotgun shells.  After obtaining the three firearms and ammunition, Gaither, who was being survielled by ATF agents, attempted to evade arrest by traveling at a high rate of speed through a densely populated area. He was ultimately stopped by ATF agents near the Pentagon City Mall in Arlington, Virginia.  Upon being pulled over, Gaither first attempted to drive away, when that proved fruitless he intentionally rammed two law enforcement vehicles, effectively totaling them both.  Following his ramming of the vehicles, Gaither was arrested and the firearms and ammunition were confiscated. As part of his sentence he was required to forfeit the three firearms he illegally acquired and possessed.

This case was investigated by the Falls Church Field Office of the ATF Washington Field Division. Assistant U.S. Attorney G. Zachary Terwilliger prosecuted the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-234.

RICHMOND, Va. – Cameron Scot Bivins-Breeden, 21, of King George County, Virginia, was sentenced today to 288 months in prison, followed by a life term of supervised release, for using Facebook to entice and attempt to entice 38 minor victims to produce sexually explicit photographs of themselves and send to him over the internet.  In multiple instances, Bivins-Breeden used the threat of sending the sexually explicit images to friends and family of the victims to extort additional pictures from the victims.

Dana J. Boente, United States Attorney for the Eastern District of Virginia; Mark Herring, Commonwealth of Virginia Attorney General; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge John A. Gibney.

Bivins-Breeden pled guilty on June 23, 2014, to one count of production of child pornography, in violation of 18 U.S.C. § 2251, and one count of enticement of a minor, in violation of 18 U.S.C. § 2422.  In a Statement of Facts submitted in support of his pleas, Bivins-Breeden admitted that he contacted 38 juvenile females across the country, ranging in age from 11 to 17 years old, via Facebook on his iPhone.  Posing as a juvenile female, he enticed or attempted to entice them to send him sexually explicit pictures of themselves.  When the victims refused to produce additional child pornography images for him, Bivins-Breeden threatened to send the previously obtained images to the victims’ friends, family, and schoolmates on Facebook.  In total, Bivins-Breeden admitted to sending 95 child pornography images in an effort to convince victims he was in fact a juvenile female and caused victims to produce 45 child pornography images.

This case was investigated by the Federal Bureau of Investigation.  Assistant U.S. Attorney Erik S. Siebert and Commonwealth of Virginia, Office of the Attorney General, Assistant Attorney General and Special United States Attorney Samuel Fishel 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. 3:14-cr-57.

ALEXANDRIA, Va. – Yaoliang Gao, 23, of Flushing, New York, was sentenced today to 30 months in prison, followed by three years of supervised release for one count of possessing 15 or more unauthorized access devices.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Kathy Michalko, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office; and Terry Sheffer, Detective for Loudoun County Sheriff’s Office, made the announcement after sentencing by U.S. District Judge James C. Cacheris.

Gao pled guilty on July 3, 2014.  According to court documents, from March 11, 2014 to April 8, 2014, Gao was employed as a waiter at Moca Asian Bistro in Chantilly, Virginia.  When customers gave Gao their credit cards to pay for their meals, the defendant swiped the customer’s card through a credit card skimming device, which captured the customer’s card information from the magnetic strip.  Prior to beginning his employment, Gao met an individual who gave him the skimmer and agreed to pay him $50 for every credit and debit card number he captured.

On April 8, 2014, Gao was caught in the act by a customer who observed him using the skimming device to illegally obtain his credit card information.  Loudoun County Sheriff’s Deputies were dispatched to the location and took possession of the device, which was discovered to contain 598 unique credit card numbers.  As a result of Gao’s actions, financial institutions lost $8,429.  In addition, Gao, who is a Chinese citizen, overstayed his F-1 Student Visa.

The investigation was conducted by the U.S. Secret Service’s Washington Field Office, with assistance from the Loudoun County Sheriff’s Office.  Special Assistant U.S. Attorney Jennifer Ballantyne prosecuted the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-218.

RICHMOND, Va. – Kensey Lamonte Wright, 43, of Virginia Beach, Virginia, was sentenced today to 41 months in prison, followed by 3 years of supervised release, for wire fraud.  Wright was also ordered to pay $940,600 in restitution to his victims.

Dana J. Boente, United States Attorney for the Eastern District of Virginia; and Joseph Morrison, Assistant Special Agent in Charge of the United States Secret Service’s Richmond Field Office, made the announcement after sentencing by Senior United States District Judge James R. Spencer.
Wright pled guilty on June 10, 2014.  According to court documents, between January 2007 and December 2013, he acted as a representative of Fifth Degree Tours #1, Inc., Fifth Degree Records, Inc., and Turnwright Enterprises, Inc.  In that capacity, Wright solicited individuals in Virginia and elsewhere to invest in concerts, tours, and similar entertainment events to be held throughout the United States.

Wright promised returns as high as 100% within just two weeks to two months, and represented to investors that their funds would be used to produce and promote entertainment events, including ones featuring Prince, Beyoncé, Jay Z, R Kelly, and TLC, among others.  Rather than use the investment funds as he had promised, Wright used the vast majority of the funds for his personal benefit, including for gambling and other expenses at various casinos.

As a result of Wright’s ongoing scheme to defraud, investors lost $940,600.

This case was investigated by the United States Secret Service.  Assistant United States Attorneys Dominick S. Gerace and Michael Gill 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. 3:13CR143.

NORFOLK, Va. – German Dario Brand Piedrahita, 48, of Medellin, Colombia, pleaded guilty yesterday to conspiracy to manufacture and distribute cocaine for the purpose of importation into the United States.  Today, Sonia Cruz Quiceno, 48, of Calarca, Colombia, was sentenced to 168 months in prison, followed by five years of supervised release, for her involvement in the same 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 Washington Division Office, and Royce E. Curtin, Special Agent in Charge of the Federal Bureau of Investigations’ Norfolk Field Office, made the announcements after Cruz Quiceno’s sentencing by U.S. District Judge Raymond A. Jackson.

Brand Piedrahita and Cruz Quiceno were indicted on October 23, 2013 by a federal grand jury on charges stemming from their roles in a cocaine importation, firearms, and narco-terrorism conspiracy.  According to court documents, both Brand Piedrahita and Cruz Quiceno were associates of the Bacrim Los Urabeños, a transnational narco-trafficking organization operating in Colombia.

In a statement of facts filed with his plea agreement, Brand Piedrahita, admitted to his role in the production of large quantities of cocaine in Colombia on behalf of the Bacrim Los Urabeños, 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, constructing a jungle laboratory for the production of cocaine from cocaine base, transporting the cocaine to the coast of Colombia, and collecting payment for various cocaine loads.  All told, Brand Piedrahita was involved in the production and shipment of hundreds of kilograms of cocaine throughout the life of the conspiracy.  He will be sentenced on January 7, 2015.

Cruz Quiceno pleaded guilty on March 19, 2014.  According to court documents, Cruz Quiceno was responsible both for negotiating cocaine sales and moving money on behalf of the Bacrim Los Urabeños.  She is responsible for the movement of millions of U.S. dollars back into Colombia from the sale of cocaine in the United States.

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, Kevin M. Comstock, and Joseph E. DePadilla are prosecuting the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:13-cr-122.

ALEXANDRIA, Va. – Julissa Rauhut, 45, formerly of Springfield, Virginia, was convicted today on five counts of wire fraud after embezzling over $186,000 from her employer from 2009 to 2011.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Earl L. Cook, Alexandria Chief of Police, made the announcement after the verdict was accepted by U.S. District Judge James C. Cacheris.

Rauhut was indicted on May 22, 2014 by a federal grand jury on the wire fraud charges.  According to court records and evidence at trial, between December 2008 and August 2011, Rauhut worked as a personal assistant at a law firm in Alexandria.  While there she stole 120 checks and 64 money orders that were intended as payments to her employer and deposited them into her personal checking account at Bank of America.  In total, Rauhut embezzled $186,178.93.

Rauhut faces a maximum penalty of 20 years in prison for each count when she is sentenced on Dec. 18, 2014. 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 Metro Area Fraud Task Force (MAFTF), which includes agents from the U.S. Secret Service and the Alexandria Police Department.  Assistant U.S. Attorney Jack Hanly and Special Assistant U.S. Attorney Della Sentilles prosecuted the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-186.

RICHMOND, Va. – Billy Gene Jefferson, Jr., 52, of Richmond, was sentenced today to 20 years in prison for engaging in a nearly $13 million tax fraud scheme involving the rehabilitation of historic properties in Richmond, trying to hide and spend millions in ill-gotten gains to avoid paying back his victims after he was charged and pleaded guilty in federal court, and stealing his brother’s identity and trying to flee the country to avoid justice.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; Gary Barksdale, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Colonel W. Steven Flaherty, Virginia State Police Superintendent, made the announcement after the sentence was handed down by U.S. District Judge John A. Gibney, Jr.

On Dec. 19, 2013, Jefferson pleaded guilty to conducting a major fraud against the United States and engaging in unlawful monetary transactions for his role in orchestrating a multimillion dollar rehabilitation tax credit scheme between 2009 and 2012. During that time, Jefferson applied for and received millions in state and federal historic tax credits in connection with the rehabilitation of a former tobacco manufacturing plant in the Manchester Industrial Historic District of Richmond (referred to as the TABAC Project), followed by the rehabilitation of ten historic buildings located in the Fan District of Richmond (referred to as the River City Renaissance Projects).  Jefferson then sold many of those tax credits to corporate investors.  However, Jefferson grossly inflated the rehabilitation costs on the properties at issue, and as a result, he fraudulently obtained millions in state and federal tax credits.  The loss in federal tax credits was $5,754,616, and the loss in state credits was $7,193,270, for a combined total of approximately $12,947,886.

After Jefferson pleaded guilty on Dec. 19, 2013, he was released on bond, allowing him to gather funds to repay his victims before sentencing.  While awaiting sentencing, however, law enforcement discovered Jefferson was stealing and spending funds that could have been used to repay his victims, including orchestrating hundreds of covert transactions designed to spend and conceal over $7 million.   At a hearing held on September 9, 2014, the United States presented evidence that Jefferson had illegally amassed up to $2.5 million for a cash hoard, stole over $2.15 million in assets during a month-long trip to Las Vegas, and opened a new bank account and conducted several financial transactions to evade a pretrial release bond requirement to report any transactions over $25,000 to the IRS.  Investigators also discovered that Jefferson had created a PVC pipe vault designed to hold his cash hoard.  After his arrest, Jefferson asked a friend to throw the pipe away.  Instead, on Feb. 28, 2014, the friend led FBI and U.S. Postal Inspection Service investigators to the empty pipe which was later presented as evidence against the defendant.

In addition to hiding and spending down his assets, Jefferson engaged in a thwarted attempt to flee the United States to avoid sentencing and further prosecution.  As part of this effort, Jefferson created a false Arkansas driver’s license in the name of his brother, but with a picture of himself, and Jefferson then used the false ID while attempting to charter a one-way flight to Cranfield, England.  Jefferson later pleaded guilty on June 4, 2014, to unlawfully transferring a false identification document and aggravated identity theft for using his brother’s identity.

Judge Gibney consolidated both cases for today’s sentencing hearing.  As part of his plea agreement, Jefferson has agreed to pay full restitution for the tax credit scheme, which could range between $9.6 million up to $12.9 million.  Due to issues in identifying the final amount of restitution and the victims, the court continued the restitution hearing for 60 days.

This case was investigated by IRS-CI, FBI’s Richmond Field Office, U.S. Postal Inspection Service, and Virginia State Police, with assistance from the Virginia Department of Historic Resources.  Assistant U.S. Attorneys Michael Gill and Wingate Grant and Senior Assistant Attorney General and Special Assistant United States Attorney Patrick Dorgan Patrick Dorgan 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 Nos. 3:13CR212 and 3:14CR066.

ALEXANDRIA, Va. – Taofik Gbadamosi, 42, of Bowie, Maryland, was sentenced on Friday to seven years in prison, followed by four years of supervised release, for supervising a bank fraud and identity theft scheme in the Washington, D.C. metro area.  Gbadamosi also was ordered to pay restitution and forfeiture of approximately $781,697.

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; Kathy A. Michalko, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office; and Earl L. Cook, Alexandria Chief of Police, made the announcement after sentencing by U.S. District Judge Liam O’Grady.

Gbadamosi pleaded guilty on May 29, 2014 to conspiracy to commit bank fraud and aggravated identity theft.  According to court documents, Gbadamosi and his co-conspirators opened business accounts at banks in the Washington metro area, including in the Eastern District of Virginia, and the group funded the accounts through stolen and counterfeit checks and unauthorized wire transfers.

Gbadamosi was a manager and supervisor in the conspiracy, driving other conspirators from bank to bank and directing them to withdraw stolen funds.  Gbadamosi gave false identification documents to his co-conspirators, who would then enter the banks and use the IDs to cash checks drawn on the fraudulently funded accounts.  These IDs contained the names and birthdates of real people who did not know their identities had been stolen.  On at least one occasion, Gbadamosi gave the real driver’s license of an individual to a co-conspirator, whom Gbadamosi then directed to make unauthorized withdrawals from that individual’s bank account.

Gbadamosi is the second co-conspirator to be sentenced in the case.  On March 14, 2014, Samuel Goines was sentenced to five years in prison and three years of supervised release.  Gbadamosi managed and supervised Goines during his participation in the conspiracy.

This case was investigated by the FBI’s Washington Field Office, U.S. Secret Service, and Alexandria Police Department.  Assistant U.S. Attorney Kosta S. Stojilkovic and Special Assistant U.S. Attorney William E. Johnston prosecuted the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-161.

ALEXANDRIA, Va. – Tayron Tyree Weeks, 24, of Alexandria, pleaded guilty yesterday to engaging in the sex trafficking of a child.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; and Earl L. Cook, Alexandria Chief of Police, made the announcement after the plea was accepted by U.S. District Judge T. S. Ellis, III.

In a statement of facts filed with the plea agreement, Weeks admitted that he met a 14-year-old girl at the Braddock Road Metro Station and eventually took the girl to a friend’s apartment in Alexandria, where Weeks engaged in sexual acts with her.  Weeks then asked the victim if she was interested in earning money by selling her body, and Weeks encouraged the girl to do so.  The victim told Weeks that she was only 14 years old, and Weeks responded “money is money,” and something to the effect of “You might as well get paid for something most girls do for free.”

The victim eventually contacted the police and allowed the police to use her Facebook account.  While posing as the victim, police personnel told Weeks about a fictitious girl named “Alisha,” who purportedly wanted to be prostituted.  A Fairfax County Police detective posed as “Alisha” and called Weeks on the telephone.  Weeks described to “Alisha” how the prostitution would work.  Weeks also informed “Alisha” that she and the victim would perform sex acts with the same customer because customers would pay more for this simultaneous service.

On a few occasions, Weeks and “Alisha” discussed the unlawfulness of prostituting underage girls, and Weeks conceded to “Alisha” that his prostitution of the victim and “Alisha” could result in imprisonment for many years.  Weeks also informed a friend that he intended to prostitute underage girls, and the friend told Weeks that such conduct would constitute “sex trafficking,” that sex trafficking was unlawful and immoral, and that this conduct would likely result in Weeks being imprisoned.  Weeks responded that he did not think the police would catch him.

Weeks faces a maximum penalty of life in prison when he is sentenced on Dec. 12, 2014.  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 Fairfax County Police Department, the FBI’s Washington Field Office, and the Alexandria Police Department.  Assistant U.S. Attorney Michael J. Frank is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-313.

ALEXANDRIA, Va. – James Link, 57, of Washington, D.C., was sentenced today to 35 years in prison, followed by five years of supervised release for two counts of brandishing a firearm during a crime of violence.

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 M. Douglas Scott, Arlington County Chief of Police, made the announcement after sentencing by U.S. District Judge T.S. Ellis, III.

According to court records, the FBI identified Link and co-defendants James McNeal, 63, of Hyattsville, Maryland, and Alphonso Stoddard, 59, of Forest Heights, Maryland, as possible suspects in a string of bank robberies in late 2013.  On Dec. 27, 2013, Link, McNeal and Stoddard were followed by law enforcement agents as they cased two banks in Arlington, Virginia.  One of the banks the defendants were seen casing was a Wells Fargo branch on South George Mason Drive.

On Dec. 31, 2013, McNeal left his residence in Hyattsville and picked up Link and Stoddard before returning to the Wells Fargo branch in Arlington.  At approximately 1:15 p.m., Stoddard and Link entered the bank.  Inside the bank, Link brandished a firearm while Stoddard removed approximately $47,000 in cash from teller drawers.  The two men exited the bank and returned to the vehicle where McNeal was waiting.  The FBI and Arlington police officers arrested the defendants shortly after exiting the Wells Fargo branch.  A handgun and cash were found in the vehicle.

A search of McNeal’s house led to the discovery of an additional firearm believed to be used in earlier bank robberies, cash and gloves.  Stoddard admitted to his involvement in armed robberies at a Wells Fargo in Rockville, Maryland on Oct. 29, 2013 and the Bank of Georgetown in Vienna, Virginia on Oct. 30, 2013.  Link admitted he was involved in the Bank of Georgetown robbery and an armed robbery at a Wells Fargo in Arlington on Nov. 25, 2013.

Link pleaded guilty to two counts of brandishing a firearm during a crime of violence and admitted his involvement in four bank robberies.  Stoddard was convicted at an August 2014 trial on charges involving three separate bank robberies, and McNeal was convicted for his involvement in one bank robbery.  Stoddard faces a mandatory life sentence because of prior convictions for armed bank robberies, and McNeal faces a mandatory minimum sentence of seven years and a maximum sentence of life in prison. Stoddard and McNeal will be sentenced on Nov. 7, 2014.

The investigation was conducted by the FBI’s Washington Field Office, with assistance from FBI’s Baltimore Division and the Arlington County and Fairfax County police departments.  The U.S. Attorney’s Offices for the District of Columbia and the District of Maryland also provided assistance in the investigation.  Special Assistant U.S. Attorney Jennifer A. Clarke is prosecuting the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-76.

ALEXANDRIA, Va. – Tayron Tyree Weeks, 24, of Alexandria, pleaded guilty yesterday to engaging in the sex trafficking of a child.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; and Earl L. Cook, Alexandria Chief of Police, made the announcement after the plea was accepted by U.S. District Judge T. S. Ellis, III.

In a statement of facts filed with the plea agreement, Weeks admitted that he met a 14-year-old girl at the Braddock Road Metro Station and eventually took the girl to a friend’s apartment in Alexandria, where Weeks engaged in sexual acts with her.  Weeks then asked the victim if she was interested in earning money by selling her body, and Weeks encouraged the girl to do so.  The victim told Weeks that she was only 14 years old, and Weeks responded “money is money,” and something to the effect of “You might as well get paid for something most girls do for free.”

The victim eventually contacted the police and allowed the police to use her Facebook account.  While posing as the victim, police personnel told Weeks about a fictitious girl named “Alisha,” who purportedly wanted to be prostituted.  A Fairfax County Police detective posed as “Alisha” and called Weeks on the telephone.  Weeks described to “Alisha” how the prostitution would work.  Weeks also informed “Alisha” that she and the victim would perform sex acts with the same customer because customers would pay more for this simultaneous service.

On a few occasions, Weeks and “Alisha” discussed the unlawfulness of prostituting underage girls, and Weeks conceded to “Alisha” that his prostitution of the victim and “Alisha” could result in imprisonment for many years.  Weeks also informed a friend that he intended to prostitute underage girls, and the friend told Weeks that such conduct would constitute “sex trafficking,” that sex trafficking was unlawful and immoral, and that this conduct would likely result in Weeks being imprisoned.  Weeks responded that he did not think the police would catch him.

Weeks faces a maximum penalty of life in prison when he is sentenced on Dec. 12, 2014.  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 Fairfax County Police Department, the FBI’s Washington Field Office, and the Alexandria Police Department.  Assistant U.S. Attorney Michael J. Frank is prosecuting the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-313.

RICHMOND, Va. – Donnica Crossland, of Washington, D.C., pleaded guilty today to making false statements to federal agents in connection with an investigation of student aid fraud.  Her daughter, Jamanda Crossland, pleaded guilty today to making false statements on student financial aid applications. 
Dana J. Boente, United States Attorney for the Eastern District of Virginia;and Mark A. Smith, Special Agent in Charge of the Technology Crimes Division of the Department of Education Inspector General’s Office, made the announcement after the pleas were accepted by United States District Judge Henry Hudson.

Donnica and Jamanda Crossland each face a maximum penalty of 5 years in prison, a fine of up to $250,000, and full restitution when they are each sentenced on December 12, 2014, by United States District Judge Henry Hudson.

In separate statements of fact filed by each defendant with their written plea agreements, Donnica and Jamanda Crossland admitted that Jamanda Crossland attended Virginia Commonwealth University (VCU), in Richmond, Virginia, as a student from 2009 to 2013.  Between 2009 and 2013, Jamanda Crossland was awarded $69,788 in U.S. Federal Education grants or loans, and $43,400 in tuition grants from the D.C. Office of the State Superintendent of Education, Government of the District of Columbia (“OSSE”) that were used to pay costs associated with attending VCU.  For each year Jamanda Crossland attended VCU between 2008 and 2013, she filed a Free Application for Federal Student Aid (FAFSA) with the U.S. Department of Education and reported her mother Donnica Crossland had no income.  During that same period, Jamanda Crossland filed applications for education grants with the D.C. OSSE, and in those applications stated her mother Donnica Crossland was not employed and received no income.  Jamanda Crossland also submitted a Federal Student Aid Verification worksheet containing false information to VCU and provided additional false documents in support of the worksheet, including: fraudulent copies of Form 1040 for her father, a forged letter from her father regarding his marital status, and a fake utility bill with a false address for her mother.

 To facilitate her daughter Jamanda Crossland obtaining the OSSE grants for use at VCU, and another daughter obtaining the OSSE grants for use at a North Carolina college, on five separate occasions Donnica Crossland affirmed and signed these OSSE applications falsely stating that she was not employed and received no income, which were then submitted to the OSSE.  In fact, for each year during the period from December 2006 through December 2012, Donnica Crossland had a substantial income from employment at the U.S. Department of Transportation (“USDOT”), earning a total of $521,819 from her employment at the USDOT for that time period.

In 2013, the U.S. Department of Education’s Office of the Inspector General commenced an investigation of the Crossland aid applications and supporting documents.  On July 30, 2013, Department of Education Inspector General agents interviewed Donnica Crossland.  During the interview, attempting to conceal her involvement, Donnica Crossland knowingly and falsely stated that she had filled out some of Jamanda Crossland’s paperwork during the summer prior to her first year of college, but she had nothing to do with their financial aid applications thereafter.
On November 7, 2013, Department of Education Inspector General agents again interviewed Donnica Crossland.  During the interview, attempting to conceal her involvement, Donnica Crossland knowingly and falsely stated that she had no knowledge of any of the financial assistance applications submitted by Jasmine Crossland and Jamanda Crossland after 2007.

For restitution and sentencing purposes, Donnica and Jamanda Crossland stipulated that the loss amount resulting from their false statements and filings is $78,688.00.

This case was investigated by the U.S. Department of Education’s Office of the Inspector General.  Assistant U.S. Attorney S. David Schiller 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 Nos. 3:14-cr-115 and 116.

ALEXANDRIA, Va. – Federal prosecutors and members of law enforcement were honored yesterday with the Anti-Defamation League’s SHIELD Award for their role in the investigation and prosecution of three men who conspired to use the “Revolution Muslim” websites as a platform to solicit murder and promote violent extremism.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, accepted the award on behalf of the U.S. Attorney’s Office, and he was joined at the ceremony by Principal Deputy Assistant Attorney General Mary McCord of the Justice Department’s National Security Division; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; and Sergeant Kevin Branzetti of the New York City Police Department’s (NYPD) Intelligence Bureau.

According to court records, Jesse C. Morton and Yousef Mohamid Al-Khattab founded the Revolution Muslim websites in 2007 to encourage followers to terrorize perceived enemies of Islam.  Zachary A. Chesser, formerly of Fairfax, Virginia, joined Revolution Muslim in 2010 as a site administrator.

Morton, Chesser, al-Khattab and their associates used the organization’s Internet platforms to encourage adherents to support Usama bin Laden, Anwar Awlaki, al-Qaeda, the Taliban and others engaged in or espousing jihad.  In spring 2010, Morton and Chesser used Revolution Muslim’s online forums to solicit the murder of the South Park television show’s writers and a Seattle, Washington cartoonist for an alleged insult to Islam.  Chesser also used Revolution Muslim to promote what he called “Open Source Jihad” by posting information on the manufacture and use of explosives against civilians, law enforcement authorities and U.S. military forces at home and abroad.

In 2011, Chesser pleaded guilty to soliciting murder and attempting to support Al-Shabaab, a designated foreign terrorist group based in Somalia, and he was sentenced to 25 years in prison on Feb. 24, 2011.  In 2012, Morton pleaded guilty to soliciting murder, and he was sentenced to nearly 12 years (138 months) in prison on June 22, 2012.  In 2013, Al-Khattab pleaded guilty to using the Internet to place others in fear of serious bodily injury or death, and he was sentenced to 30 months in prison on April 25, 2014.

The cases were prosecuted by Assistant U.S. Attorneys Gordon D. Kromberg, Thomas H. McQuillan, Tracy McCormick, Karen L. Dunn, and Special Assistant U.S. Attorney Allison Ickovic, with the assistance of Management Analyst Loraine McNeill of the U.S. Attorney’s Office for the Eastern District of Virginia; and Trial Attorneys John T. Gibbs and Mazen Basrawi from the Justice Department’s National Security Division and Civil Rights Division, respectively.

According to a media advisory issued by the Anti-Defamation League, the SHIELD Awards were created to honor law enforcement for “major achievements in the fight against hate crimes, domestic and international terrorism, and for protecting civil rights. . . . The award’s name reflects law enforcement’s role as protectors, and is also an acronym for the core values of the profession: Service, Honor, Integrity, Excellence, Leadership, and Dedication.”

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 U.S. District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:10-cr-395 (Chesser), 1:12-cr-35 (Morton), and 1:13-cr-418 (Al-Khattab).

WASHINGTON – A second Colombian man extradited to the Eastern District of Virginia pleaded guilty today for his involvement in the kidnapping and murder of Drug Enforcement Administration (DEA) Special Agent James Terry Watson in Bogotà, 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 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.”

“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.”

Andrés Álvaro Oviedo García, 22, pleaded guilty before U.S. District Judge Gerald Bruce Lee of the Eastern District of Virginia to aiding and abetting the murder of an internationally protected person and conspiracy to kidnap an internationally protected person.  Sentencing is scheduled for Dec. 12, 2014.

In a statement of facts filed with the plea agreement, Oviedo García admitted that he and his conspirators agreed to conduct a “paseo milionario” or “millionaire’s ride” in which victims who were perceived as wealthy were lured into taxi cabs, kidnapped and then robbed.  Oviedo García admitted that he was part of the group of individuals that targeted Special Agent Watson, but his taxi encountered mechanical issues.  Oviedo García remained with the disabled taxi while the other conspirators continued with the group’s plan to conduct the “millionaire’s ride” robberies.  Shortly thereafter, Special Agent Watson was targeted and picked up in a taxi outside a restaurant in Bogotà.  Soon after, two conspirators entered the taxi carrying Special Agent Watson, and one used a stun gun to shock Special Agent Watson and the other stabbed him.  Special Agent Watson was able to escape from the taxi, but he later collapsed and died from his injuries.

Six other defendants were charged in this case for their alleged involvement in the murder of Special Agent Watson.  Gerardo Figueroa Sepúlveda, 39; Omar Fabiàn Valdes Gualtero, 27; Édgar Javier Bello Murillo, 27; and Héctor Leonardo López, 34, are each charged by indictment with second degree murder, kidnapping and conspiracy to kidnap.  Wilson Daniel Peralta Bocachica, 31, was charged for his alleged efforts to destroy evidence associated with the murder of Special Agent Watson. 

On Sept. 3, 2014, Julio Estiven Gracia Ramírez, 31, pleaded guilty to aiding and abetting the murder of an internationally protected person and conspiracy to kidnap an internationally protected person.  Sentencing for Gracia Ramírez is scheduled for Dec. 5, 2014.  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.

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ALEXANDRIA, Va. – Johnny Elegante Lee, 45, of Roosevelt, New York, who was one of 13 alleged members of a criminal counterfeiting operation that manufactured, produced and distributed millions of dollars up and down the eastern United States, pleaded guilty yesterday to participating in a racketeering conspiracy. 

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Kathy Michalko, U.S. Secret Service Special Agent in Charge, Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Liam O’Grady. 

Lee was indicted on Aug. 7, 2014, by a federal grand jury. In a statement of facts filed with his plea agreement, Lee admitted that from 2004 through his arrest in June 2014, he was a member of a criminal enterprise that manufactured, produced,  distributed and uttered  millions of high-quality counterfeit $100 Federal Reserve Notes that were manufactured in Israel and the United States.  The counterfeit U.S. currency was printed on off-set printing presses and sold to dealers such as Lee, and then uttered at retail establishments throughout the eastern United States, resulting in loss to merchants and individuals who provided goods and services in exchange for counterfeit $100 bills. Lee also admitted that his previous counterfeiting conviction in Richmond, Virginia in 2004 was part of his participation in this enterprise.

He faces a maximum penalty of 20 years in prison when he is sentenced on January 9, 2015.  The maximum statutory sentences outlined above are prescribed by Congress and are provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

This case was investigated by the United States Secret Service.  Assistant United States Attorneys Kimberly R. Pedersen and Gordon L. Kromberg 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-00206.

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NORFOLK, Va. – W. Wayne Perry, Jr., 55, and his wife, Angela Perry, 52, formerly of Suffolk, Va., were convicted after a three-week trial late yesterday afternoon by a federal jury of one count of conspiracy to commit health care fraud, four counts of health care fraud, eight counts of false statements relating to health care matters, one count of alteration of records and four counts of aggravated identity theft.

Dana J. Boente, United States Attorney for the Eastern District of Virginia, Virginia Attorney General Mark R. Herring and Special Agent in Charge Royce E. Curtin of the FBI’s Norfolk Field Office made the announcement today.  The verdicts were accepted by United States District Judge Mark S. Davis.

W. Wayne Perry, Jr. and Angela Perry each face a maximum penalty of ten years in prison for conspiracy to commit health care fraud, ten years in prison for each count of health care fraud, five years on each of the false statement counts, twenty years for alteration of records, and two years on each of the aggravated identity theft counts when they are sentenced on January 8, 2015.

W. Wayne Perry, Jr. and Angela Perry were indicted on charges of conspiracy to commit health care fraud and seventeen other counts of related charges by a federal grand on February 5, 2014. According to court records and the evidence presented at trial, W. Wayne Perry, Jr. was the owner and operator of Community Personal Care, a business located in Norfolk, Va. that was authorized to provide home health care services that are reimbursable by Medicaid, including personal care and respite care services.  Angela Perry was an officer and agent of the company.  Between January 2009 and December 2012, Wayne Perry and Angela Perry orchestrated a false billing scheme where numerous fraudulent claims were submitted to the Virginia Medicaid program, falsely representing that personal care and respite care services had been provided to Medicaid recipients by Community Personal Care.  A forfeiture provision in the superseding indictment asserts that the amount of the fraud is approximately $1.3 million dollars.  In order to conceal the fraudulent payments, Wayne Perry and Angela Perry altered the company’s office records, including time sheets.  This was done with the assistance of Allison Hunter-Evans, a former employee in the administration department of the Virginia Medicaid program, who previously pled guilty on May 14, 2014 and is scheduled to be sentenced on October 16, 2014.

This case was investigated by the FBI and the Virginia Attorney General’s Medicaid Fraud Control Unit, with the assistance of the Virginia Department of Medical Assistance Services.  Assistant United States 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 United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.

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NORFOLK, Va. – Sherry R. Kelley, age 41, of Exmore, Va., pleaded guilty today to engaging in aggravated identity theft.

Dana J. Boente, United States 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 Settles, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington; and Captain Timothy A. Reibel, Virginia State Police Bureau of Criminal Investigations, made the announcement after the plea was accepted by Senior United States District Judge Robert G. Doumar.

A Norfolk federal grand jury indicted Kelley on June 18, 2014 on ten counts of aggravated identity theft and ten counts of using others' social security numbers. As a result of her guilty plea to count one of the indictment, Kelley faces a mandatory penalty of two years of incarceration when she is sentenced on January 20, 2015.

As reported in a statement of facts filed with the plea agreement, 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, Kelley electronically applied for and obtained 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 is prosecuting the case on behalf of the United States.

A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.

RICHMOND, Va. – Nathaniel A. McNeil, 46, of Pensacola, Florida, was sentenced today to 68 months in prison, followed by a three year termof supervised release, for engaging in a life insurance scheme with at least 1,249 victims.  McNeil was also ordered to pay $32,835 in restitution to identified victims.

Dana J. Boente, United States 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.

McNeil pleaded guilty to conspiracy to commit mail fraud on June 12, 2014.  According to court documents, he was the founder and president of an entity called Life Transformation Ministries International (or “LTMI”), which purported to be a non-profit, religious organization.  From 2009 through August 2011, McNeil, with the help of his co-conspirator Trudi Batiste, promised LTMI members a universal life insurance policy in exchange for a one-time fee of approximately $25.  To further his scheme, McNeil also attempted to defraud several insurance companies by misrepresenting in insurance applications the net worth of his ministry and that applicants were actually his employees.  Ultimately, McNeil and Batiste obtained nearly $240,000 from at least 1,249 victims across the country.   None of the individuals that paid the fee ultimately obtained a life insurance policy.  Instead, McNeil and Batiste used the money for their own personal purposes.

Batiste pled guilty to the mail fraud on May 8, 2014, and is scheduled to be sentenced before Judge Hudson on September 30, 2014.         

This case was investigated by the United States Postal Inspection Service and the Federal Bureau of Investigation.  Assistant United States Attorney Katherine Lee Martin 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. 3:14-cr-43.

ALEXANDRIA, Va. – The former head of a Virginia-based defense contracting company was sentenced today to serve 18 months in prison for failing to collect and pay more than $2.2 million in employee payroll taxes and engaging in theft of more than $186,000 from an employee pension plan.

U.S. Attorney Dana J. Boente for the Eastern District of Virginia; Deputy Assistant Attorney General Ronald Cimino for the Justice Department’s Tax Division; Special Agent in Charge Thomas J. Kelly for the Internal Revenue Service-Criminal Investigation (IRS-CI) Washington, D.C. Field Office; and Assistant Secretary Phyllis C. Borzi of the U.S. Department of Labor-Employee Benefits Security Administration made the announcement after sentencing.

William P. Danielczyk Jr., 53, formerly of Oakton, Virginia, was ordered to serve three years of supervised release after his prison sentence and to pay more than $1.6 million in restitution to the IRS.  U.S. District Judge James C. Cacheris imposed the sentence, and it will be served consecutively to the 28 months in prison the defendant is already serving for committing campaign finance violations during the 2008 presidential primary and a 2006 U.S. Senate campaign.

Danielczyk pleaded guilty on June 10, 2014.  According to court documents, from March 2009 until December 2011, Danielczyk was the executive chairman of Innolog Holdings Corporation, which acquired Innovative Logistics Technology Inc. in March 2009.  Innovative operated in the government services industry and provided technology-supported logistics services to the U.S. military and various defense organizations.  The principal offices for Innovative and Innolog were located in McLean, and later in Fairfax, Virginia.

From mid-2009 through the end of 2011, Danielczyk was responsible for collecting, accounting for and paying appropriate payroll tax amounts to the IRS.  Although payroll taxes were withheld from the wages of Innovative’s employees, Danielczyk failed to pay both the employee withholdings amounts and the employer’s matching portions to the IRS.  The total tax loss during this time period was $2,232,781.

According to court documents, Innovative’s employees were allowed to contribute money from their bi-weekly paychecks to a qualified pension plan that was administered by an asset custodian (initially Prudential Bank & Trust and later Fidelity Investments).  Under the 401(k) plan, Innovative withheld its employees’ elected contribution amounts from their regular paychecks and the employee withholdings were to be sent to Prudential or Fidelity.  Danielczyk was the person responsible for authorizing payments to the asset custodian, and he failed to send these payments over the course of three years.  From 2009 through 2011, this conduct led to a total loss of $186,263.

According to court records, instead of paying Innovative’s employment taxes and pension plan contributions, Danielczyk made a variety of purchases from company accounts.  Those purchases included $505,871 for the use of an executive suite in the FedEx Field football stadium in Landover, Maryland, along with $40,000 to sponsor the Virginia Gold Cup, a series of Steeple Chase horse races held in northern Virginia.

Danielczyk was sentenced in Alexandria federal court on May 31, 2013 to serve 28 months in prison for engaging in a campaign finance scheme in which he conspired to illegally reimburse more than $186,000 in contributions to the senate and presidential campaign committees of a candidate for federal office, engaged in obstruction of justice, and caused the candidate’s campaign committee to unwittingly file Federal Election Commission reports that contained false information.  Court records show that Danielczyk continued to fail to pay Innovative’s employee taxes and pension plan contributions even after he was indicted in the campaign finance case in February 2011.

The tax and pension fraud case was investigated by IRS-CI and the U.S. Department of Labor-Employee Benefits Security Administration’s Philadelphia Regional Office.  Assistant U.S. Attorney Mark D. Lytle for the Eastern District of Virginia and Trial Attorney Tracy L. Gostyla of the Tax Division prosecuted the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the U.S. District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-146.

RICHMOND, Va. – Mustafa Muhammad, 36, of Clinton, Maryland, was sentenced today to 120 months in prison, followed by 5 years of supervised release, for transporting a minor from Maryland to Virginia for prostitution. 
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; and Clark E. Settles, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI), made the announcement after sentencing by United States District Judge Payne.

Muhammad was found guilty by a federal jury on June 24, 2014.  Evidence at trial established that Muhammad met a 16-year old runaway online in February 2014, and then began communicating with her via text message.  Later that month, Muhammad and the juvenile met in person in Maryland, and Muhammad posted an advertisement on backpage.com featuring the juvenile and offering her for prostitution.  The juvenile provided Muhammad some of the money she made from prostitution.  In March 2014, Muhammad suggested that they travel to Virginia for the juvenile to work in prostitution, and, so, on March 14, 2014, Muhammad drove the juvenile from Maryland to a Holiday Inn in Fredericksburg, Virginia.  Muhammad then posted another advertisement on backpage.com in Fredericksburg, advertising the juvenile for prostitution.  A Stafford Sheriff’s deputy was looking for possible prostitution activity on backpage.com and discovered the juvenile’s ad.  The deputy then arranged to meet the juvenile and discovered that she was a 16-year old runaway.

This case was investigated by the Federal Bureau of Investigation, Homeland Security Investigations, Stafford County Sheriff’s Office, and Spotsylvania County Sheriff’s Office.  Assistant United States Attorney Heather L. Hart 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. 3:14-cr-55.

NORFOLK, Va. – Enrique Omar Hinton, a.k.a. “Rico,” 26, of Newport News, was sentenced today to 255 months in prison, followed by five years of supervised release, for engaging in numerous criminal activities as a member of the Black P-Stones gang, including participating in a shooting that targeted a rival gang member, trafficking marijuana, and lying to a federal grand jury.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; and Special Agent in Charge Royce E. Curtin of the FBI’s Norfolk Field Office made the announcement after sentencing by U. S. District Judge Arenda Wright Allen.

According to a statement of facts filed with his plea agreement, Enrique Omar Hinton (a.k.a. “Rico”), admitted that he was a “foot soldier” in a violent street gang called the Black P-Stones, also referred to as the P-Stone Bloods and Cobra Stones.  The Black P-Stones operated primarily in the Beechmont, Courthouse Green, and Woodview neighborhoods in the Denbigh area of Newport News, and its members engaged in various criminal activities, including murders, robberies, drug trafficking, and obstruction of justice.

According to the statement of facts, Hinton joined the gang in 2005, and as a foot soldier, he sold marijuana for the gang, carried firearms, attended gang meetings, and planned and participated in the gang’s criminal activities.  Additionally, on Dec. 10, 2008, Hinton and others retaliated against a rival gang member who exhibited disrespect toward the girlfriend of a Black P-Stones member.  Approximately seven to eight bullets were fired at the rival gang member’s home, with bullets entering the living room and front door while two people were inside.
Hinton also admitted that on July 13, 2009, he testified falsely before a federal grand jury to obstruct the investigation of the Black P-Stones and the Dec. 10 shooting.

Hinton was charged in a superseding indictment on Dec. 9, 2013, and he pleaded guilty on March 28, 2014 to one count of racketeering conspiracy and one count of discharging a firearm in furtherance of a crime of violence.

The investigation was led by the FBI’s Safe Streets Peninsula Task Force, with the assistance of the Newport News Police Department, James City County Police Department, and the Virginia State Police.  This case is being prosecuted by Assistant U.S. Attorney Eric M. Hurt and Trial Attorney Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:13-cr-96.

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RICHMOND, Va. – Richard A. Long, age 58, of Midlothian, Virginia, pleaded guilty to failing to truthfully account for and pay over employment taxes.  He faces up to five years in prison and a $250,000 fine when he is sentenced by United States District Judge John A. Gibney on January 7, 2015.

Dana J. Boente, United States Attorney for the Eastern District of Virginia; Ron Cimino, Deputy Assistant Attorney General for Criminal Matters, Tax Division; and Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office, announced the plea.

According to a Statement of Facts filed with the plea agreement, Long acknowledged that he owned, operated, and was the president of Mercedes-Volvo Service Center, a Virginia-based automotive repair business specializing in high-end vehicles.  He was the person responsible for collecting, truthfully accounting for, and paying federal income, Social Security, and Medicare taxes for his employees.  Long admits that from 2007 through the first quarter of 2013 he paid employees of Mercedes-Volvo Service Center net wages subject to federal taxes totaling $1,334,418.54.  Instead of making the required $328,952.21 in estimated tax payments to the IRS with the federal taxes that he had withheld from employees’ paychecks, he kept the funds and failed to pay the IRS the taxes due.  Even though Long never paid these federal taxes to the IRS, he annually issued himself and his employees IRS Forms W-2 that reflected the federal tax withholdings.

This case is being investigated by special agents of IRS – Criminal Investigation and is being prosecuted by Special Assistant United States Attorneys Rebecca Perlmutter and Todd Kostyshak, both of whom are trial attorneys with the DOJ Tax Division, and with the assistance of the U.S. Attorney’s Office.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14-cr-117.  More information about the Tax Division and its enforcement efforts can be found at www.justice.gov/tax.

RICHMOND, Va. – William A. Coles, Jr., of Pamplin, Va., was sentenced today to 50 months in prison, 2 years of supervised release, and ordered to pay $1,035,014 in restitution for his role in a conspiracy to defraud the United States through the preparation and filing of false federal income tax returns and bank fraud.

Dana J. Boente, United States Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Ron Cimino, Deputy Assistant Attorney General for Criminal Matters, Tax Division; and Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office, announced the sentence that was imposed by District Court Judge Henry E. Hudson.

Coles was indicted on seven counts by a federal grand jury on March 4, 2014.  The indictment alleged that Coles conspired with his wife, Sybil Coles, from January 2008 until March 2012 to prepare and file fraudulent federal income tax returns for themselves and several other individuals. The indictment also charged William Coles with five counts of assisting in the preparation of fraudulent federal income tax returns and one count of bank fraud.

A jury convicted Coles on all counts on May 22, 2014.  Evidence at trial established that Coles, a supervisor at the Piedmont Regional Jail, solicited colleagues at the Jail to have their federal income tax returns prepared by his wife.  Several of those co-workers testified that Coles claimed his wife knew of secret law enforcement loopholes to get larger tax refunds.  Believing these tax return strategies were legal, the co-workers provided Coles with their tax documents and fees for the preparation of their returns.  Unbeknownst to those colleagues, however, these returns were fraudulently prepared.

The evidence at trial also showed that William and Sybil Coles electronically deposited checks generated from these fraudulent federal and State of Virginia returns into student bank accounts in the name of their college-age daughter.  The Coles spent this money on personal living expenses, including mortgage and car loan payments and family vacations.  In addition, William Coles was interviewed by Special Agents with the Internal Revenue Service Criminal Investigation and failed to disclose the use of the multiple bank accounts where tax refunds and cash were deposited, but admitted that he knew his wife was filing false tax returns and that he had solicited clients from the Jail.

In addition, the trial evidence included multiple sworn claims by William Coles of inflated income and corroborating false documents, including false W-2s and paystubs for him and his wife, that were submitted to the Bank of America and finance companies to obtain a home refinance loan and two car loans.

Sybil Coles pled guilty on January 28, 2014, to a criminal information charging her with aiding and assisting in the preparation of false tax returns and with aggravated identity theft.  Judge Hudson sentenced her on May 12, 2014 to five years’ imprisonment.

The case is being prosecuted by Department of Justice, Tax Division Trial Attorney and Special Assistant United States Attorney, Rebecca Perlmutter, and Assistant Attorney General and Special Assistant United States Attorney Michael Jagels.  IRS-Criminal Investigation in Richmond, Virginia investigated the case.

NEWPORT NEWS, Va. – The owners of a Gloucester, Virginia store that sold synthetic marijuana and amphetamines were each sentenced yesterday to ten years in prison, followed by three years of supervised release, and were ordered to forfeit $425,000 as proceeds of their drug distribution activities.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, made the announcement after the sentences were imposed by U.S. District Judge Raymond A. Jackson.

Daniel Bray, 34, and Rachel Webb-Harvey, 25, both of Gloucester, pleaded guilty in September 2013 to conspiracy to distribute, and possess with intent to distribute, analogue drugs as the owners of the store “A Lil’ of This, a Lil’ of That” on George Washington Highway in Gloucester.  According to court records, from January to July 2012, the defendants sold a variety of analogue drugs commonly referred to as “Spice,” the generic street name for synthetic cannabinoids that mimic the physical effects of marijuana, and “Bath Salts,” which contain substituted cathinones that have effects similar to amphetamines.

Five other defendants were sentenced previously for their roles in the conspiracy.  Those defendants include Jose N. Alvarado, who was sentenced to seven years in prison; Sandra A. Webb, who received 56 months; Shawn R. Woodlen, who received 50 months; Jeromy L. Hawk, who received ten months; and Jeffery A. Fowlkes, who received five months in prison.

This case was investigated by Homeland Security Investigations, IRS-Criminal Investigation, the U.S. Postal Inspection Service, the Virginia State Police Tri-Rivers and Peninsula Task Forces, the U.S. Air Force Office of Special Investigations, and the Gloucester County Sheriff’s Office.  Assistant U.S. Attorney Eric M. Hurt prosecuted the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:13-cr-45.

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ALEXANDRIA, Va. – Erick Estrada Reyes, 31, of Guatemala, was sentenced today to 11 years in prison, followed by three years of supervised release, for conspiring to import several thousand pseudoephedrine pills into the United States for the production of methamphetamine.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Robert W. Patterson, Acting Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Special Operations Division, made the announcement after sentencing by U.S. District Judge T.S. Ellis, III.

Estrada Reyespleaded guilty on June 6, 2014 to conspiracy to unlawfully import pseudoephedrine and aiding and abetting the manufacture of methamphetamine.  According to court records, Estrada Reyes was involved in the sale of nearly 5,000 pseudoephedrine pills to a person he believed was involved in a methamphetamine production operation based in Houston, Texas.  This individual was, in reality, a DEA cooperating witness.  Estrada Reyes, along with his father, Edgar Estrada Morales, and his cousin, Victor Estrada Paredes, negotiated the sale of equipment used to extract pseudoephedrine from pill form for use in the manufacture of methamphetamine.  They also discussed working for the DEA cooperator’s fictitious U.S.-based methamphetamine trafficking organization.  According to the indictment, Estrada Reyes worked for his father’s operation, which sold pseudoephedrine to groups that sold methamphetamine in the United States, including the “La Familia” Mexican drug cartel.

Estrada Reyes, along with his father and cousin, were indicted on Feb. 3, 2011 by a federal grand jury for their involvement in this operation.  Edgar Estrada Morales was sentenced to 14 years in prison on Aug. 2, 2013, and Victor Estrada Paredes was sentenced to 11 years in prison on July 19, 2013.

This case was investigated by the DEA’s Special Operations Division.  Assistant U.S. Attorney Michael P. Ben’Ary 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. 1:11-cr-62.

WASHINGTON – Joshua Vandyk, an investment advisor, was sentenced today to serve 30 months in prison for conspiring to launder monetary instruments, the Justice Department and Internal Revenue Service (IRS) announced.

Vandyk, a U.S. citizen, and Eric St-Cyr and Patrick Poulin, Canadian citizens, were indicted by a grand jury in the U.S. District Court for the Eastern District of Virginia on March 6, and the indictment was unsealed March 12 after the defendants were arrested in Miami.  Vandyk, 34, pleaded guilty on June 12, St-Cyr, 50, pleaded guilty on June 27, and Poulin, 41, pleaded guilty on July 11.  St-Cyr and Poulin are scheduled to be sentenced on Oct. 3. 

According to the plea agreements and statements of facts, Vandyk, St-Cyr and Poulin conspired to conceal and disguise the nature, location, source, ownership and control of property believed to be the proceeds of bank fraud, specifically $2 million.  Vandyk, St-Cyr and Poulin assisted undercover law enforcement agents posing as U.S. clients in laundering purported criminal proceeds through an offshore structure designed to conceal the true identity of the proceeds’ owners.  Vandyk and St-Cyr invested the laundered funds on the clients’ behalf and represented that the funds would not be reported to the U.S. government.
  
According to court documents, Vandyk and St-Cyr lived in the Cayman Islands and worked for an investment firm based there.  St-Cyr was the founder and head of the investment firm, whose clientele included numerous U.S. citizens.  Poulin, an attorney at a law firm based in Turks and Caicos, worked and resided in Canada as well as Turks and Caicos.  His clientele also included numerous U.S. citizens.  Vandyk, St-Cyr and Poulin solicited U.S. citizens to use their services to hide assets from the U.S. government, including the IRS.  Vandyk and St-Cyr directed the undercover agents to create an offshore corporation with the assistance of Poulin and others because they and the investment firm did not want to appear to deal with U.S. clients.  Vandyk, St-Cyr and Poulin used the offshore entity to move money into the Cayman Islands and used Poulin as a nominee intermediary for the transactions.

According to court documents, Poulin established an offshore corporation called Zero Exposure Inc. for the undercover agents and served as a nominal board member in lieu of the clients.  Poulin transferred approximately $200,000 that the defendants believed to be the proceeds of bank fraud from the offshore corporation to the Cayman Islands, where Vandyk and St-Cyr invested those funds outside of the United States in the name of the offshore corporation.  The investment firm represented that it would neither disclose the investments or any investment gains to the U.S. government, nor would it provide monthly statements or other investment statements to the clients.  Clients were able to monitor their investments online through the use of anonymous, numeric passcodes.  Upon request from the U.S. client, Vandyk and St-Cyr liquidated investments and transfered money, through Poulin, back to the United States.  According to Vandyk and St-Cyr, the investment firm would charge clients higher fees to launder criminal proceeds than to assist them in tax evasion.

The case was investigated by special agents of the IRS-Criminal Investigation.  Trial Attorney Todd Ellinwood and Assistant Chief Caryn Finley of the Justice Department’s Tax Division and Assistant U.S. Attorney Kosta Stojilkovic for the Eastern District of Virginia are prosecuting the case.  The Justice Department and the IRS would like to thank the Royal Canadian Mounted Police, the Royal Cayman Islands Police Service and the Royal Turks and Caicos Islands Police Force for their assistance in this investigation.

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

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RICHMOND, Va. – A federal jury returned guilty verdicts today against former Virginia Governor Robert F. McDonnell and former First Lady of Virginia Maureen G. McDonnell for participating in a scheme to violate 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.

Robert McDonnell and Maureen McDonnell, both 60 and of Glen Allen, Virginia, were convicted 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 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 on two of the three honest services wire fraud counts and four of the six counts of obtaining property under color of official right.  Maureen McDonnell also was convicted of one count of obstruction of an official proceeding.  In total, Robert McDonnell was convicted of 11 of 13 counts and Maureen McDonnell was convicted of 9 of 13 counts.

“This is a difficult and disappointing day for the Commonwealth of Virginia and its citizens,” said U.S. Attorney Boente.  “When public officials turn to financial gain in exchange for official acts, we have no choice but to prosecute them.  I thank the prosecutors, FBI, Virginia State Police, and the Internal Revenue Service-Criminal Investigation for their exceptional efforts in the investigation and prosecution of this case.”

“As Virginia’s governor, Robert McDonnell and his wife turned public service into a money-making enterprise, abusing the Commonwealth’s highest office to benefit a Virginia businessman in exchange for more than $170,000 in gifts and loans,” said Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.  “In pursuit of a lifestyle that they could ill-afford, McDonnell and his wife eagerly accepted luxury items, designer clothes, free vacations and the businessman’s offer to pay the costs of their daughter’s wedding.  In return, McDonnell put the weight of the governor’s mansion behind the businessman’s corporate interests.  The former governor was elected to serve the people of Virginia, but his corrupt actions instead betrayed them.  Today’s convictions should send a message that corruption in any form, at any level of government, will not be tolerated.”

“Public corruption, particularly among our elected officials, is the FBI’s highest criminal investigative priority,” said FBI Special Agent in Charge Adam Lee.  “We will engage and engage vigorously when we receive credible allegations of any federal, state, or local public official illegally using the power of their position to receive a personal benefit.  The people of the Commonwealth deserve better than pay-to-play politics.”

“When public officials commit crimes as part of their official duties, they are violating the public trust,” said Richard Weber, Chief, IRS Criminal Investigation.  “IRS-CI agents play a critical role in rooting out public corruption of elected officials.  The public expects more of their leaders in government and our agents work tirelessly on their behalf to ensure that we are all playing by the same rules.”

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, a Virginia-based corporation, and Jonnie R. Williams Sr., then Star Scientific’s chief executive officer.  The McDonnells obtained the things of value in exchange for the former governor performing official actions on an as-needed basis to legitimize, promote, and obtain research studies for Star’s products, including the dietary supplement Anatabloc.

According to court records and evidence, the McDonnells obtained from Williams more than $170,000 in direct payments as gifts and loans, thousands of dollars in golf outings, and numerous other things of value.  As part of the scheme, the official actions that Robert McDonnell performed included arranging meetings for Williams with Virginia government officials, hosting and attending 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 for referral to their patients, contacting other Virginia government officials as part of an effort to encourage Virginia state research universities to initiate studies of Star’s products, and promoting Star’s products and facilitating 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 things of value through family members and corporate entities controlled by the former governor to avoid annual disclosure requirements.

Similarly, on Feb. 15, 2013, Maureen McDonnell was questioned by law enforcement about the loans and made false and misleading statements regarding the defendants’ relationship with Williams.  Additionally, after her interview with law enforcement, Maureen McDonnell drafted a handwritten note to Williams in which she falsely attempted to make it appear that she and Williams had previously discussed and agreed that she would return certain designer luxury goods rather than keep them permanently, all as part of an effort to obstruct, influence, and impede the investigation.

As a result of the jury’s verdicts, the McDonnells could each face a maximum statutory sentence of 20 years in prison and a fine of the greater of $250,000 or twice the gross gain or loss on the conspiracy to commit honest-services wire fraud count, the honest-services wire fraud counts, the conspiracy to obtain property under color of official right count, and the obtaining property under color of official right counts; and a maximum statutory sentence of 20 years in prison and a fine of the greater of $250,000 or twice the gross gain or loss on the obstruction of an official proceeding count.

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

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.

RICHMOND, Va. – A federal jury returned guilty verdicts today against former Virginia Governor Robert F. McDonnell and former First Lady Maureen G. McDonnell for participating in a scheme to violate 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.

Robert McDonnell and Maureen McDonnell, both 60 and of Glen Allen, Virginia, were convicted 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 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 on two of the three honest services wire fraud counts and five of the six counts of obtaining property under color of official right.  Maureen McDonnell also was convicted of one count of obstruction of an official proceeding.  In total, Robert McDonnell was convicted of 11 of 13 counts and Maureen McDonnell was convicted of 9 of 13 counts.

            “This is a difficult and disappointing day for the Commonwealth of Virginia and its citizens,” said U.S. Attorney Boente.  “When public officials turn to financial gain in exchange for official acts, we have no choice but to prosecute them.  I thank the Assistant U.S. Attorneys, FBI, Virginia State Police, and the Internal Revenue Service-Criminal Investigation for their exceptional efforts in the investigation and prosecution of this case.”

            “As Virginia’s governor, Robert McDonnell and his wife turned public service into a money-making enterprise, abusing the commonwealth’s highest office to benefit a Virginia businessman in exchange for more than $170,000 in gifts and loans,” said Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.  “In pursuit of a lifestyle that they could ill-afford, McDonnell and his wife eagerly accepted luxury items, designer clothes, free vacations and the businessman’s offer to pay the costs of their daughter’s wedding.  In return, McDonnell put the weight of the governor’s mansion behind the businessman’s corporate interests.  The former governor was elected to serve the people of Virginia, but his corrupt actions instead betrayed them.  Today’s convictions should send a message that corruption in any form, at any level of government, will not be tolerated.”

            “Public corruption, particularly among our elected officials, is the FBI’s highest criminal investigative priority,” said FBI Special Agent in Charge Adam Lee.  “We will engage and engage vigorously when we receive credible allegations of any federal, state, or local public official illegally using the power of their position to receive a personal benefit.  The people of the Commonwealth deserve better than pay-to-play politics.”

            “When public officials commit crimes as part of their official duties, they are violating the public trust,” said Richard Weber, Chief, IRS Criminal Investigation.  “IRS-CI agents play a critical role in rooting out public corruption of elected officials.  The public expects more of their leaders in government and our agents work tirelessly on their behalf to ensure that we are all playing by the same rules.”

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, a Virginia-based corporation, and Jonnie R. Williams Sr., then Star Scientific’s chief executive officer.  The McDonnells obtained the things of value in exchange for the former governor performing official actions on an as-needed basis to legitimize, promote, and obtain research studies for Star’s products, including the dietary supplement Anatabloc.

According to court records and evidence, the McDonnells obtained from Williams more than $170,000 in direct payments as gifts and loans, thousands of dollars in golf outings, and numerous other things of value.  As part of the scheme, the official actions that Robert McDonnell performed included arranging meetings for Williams with Virginia government officials, hosting and attending 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 for referral to their patients, contacting other Virginia government officials as part of an effort to encourage Virginia state research universities to initiate studies of Star’s products, and promoting Star’s products and facilitating 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 things of value through family members and corporate entities controlled by the former governor to avoid annual disclosure requirements.

Similarly, on Feb. 15, 2013, Maureen McDonnell was questioned by law enforcement about the loans and made false and misleading statements regarding the defendants’ relationship with Williams.  Additionally, after her interview with law enforcement, Maureen McDonnell drafted a handwritten note to Williams in which she falsely attempted to make it appear that she and Williams had previously discussed and agreed that she would return certain designer luxury goods rather than keep them permanently, all as part of an effort to obstruct, influence, and impede the investigation.

As a result of the jury’s verdicts, the McDonnells could each face a maximum statutory sentence of 20 years in prison and a fine of the greater of $250,000 or twice the gross gain or loss on the conspiracy to commit honest-services wire fraud count, the honest-services wire fraud counts, the conspiracy to obtain property under color of official right count, and the obtaining property under color of official right counts; and a maximum statutory sentence of 20 years in prison and a fine of the greater of $250,000 or twice the gross gain or loss on the obstruction of an official proceeding count.

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

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.

ALEXANDRIA, Va. – A Colombian man extradited to the Eastern District of Virginia pleaded guilty today for his involvement in the kidnap and murder of Drug Enforcement Administration (DEA) Special Agent James Terry Watson in Bogotà, 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.

“Special Agent Watson gave his life in the service of his country, and we will do everything in our power to honor his sacrifice,” said Attorney General Holder.  “This conviction is a critical step forward.  But while this action represents the first measure of justice for his kidnapping and murder, it will not be the last.  The Department of Justice will not rest until all those involved in this senseless act of violence have been held to account for their crimes.  Our nation will never yield in the protection and defense of its citizens.  And we will continue to demonstrate that anyone who seeks to harm an American will be found, will be prosecuted, and will be brought to justice.”

Julio Estiven Gracia Ramirez, 31, pleaded guilty before U.S. District Judge Gerald Bruce Lee of the Eastern District of Virginia to aiding and abetting the murder of an internationally protected person and conspiracy to kidnap an internationally protected person.  Gracia Ramirez faces a maximum penalty of any term of years in prison when he is sentenced on Dec. 5, 2014.

In a statement of facts filed with the plea agreement, Gracia Ramirez admitted that he and his conspirators agreed to conduct a “paseo milionario” or “millionaire’s ride” in which victims who were perceived as wealthy were lured into taxi cabs, kidnapped and then robbed.  Gracia Ramirez admitted that he targeted Special Agent Watson and picked him up outside a Bogotà restaurant in his taxi.  Soon after, two conspirators entered Gracia Ramirez’s taxi, and one used a stun gun to shock Special Agent Watson and the other stabbed him.  Special Agent Watson was able to escape from the taxi, but he later collapsed and died from his injuries.

Six other defendants have been charged in an indictment in the Eastern District of Virginia for their alleged involvement in the murder of Special Agent Watson.  Gerardo Figueroa Sepulveda, 39; Omar Fabian Valdes Gualtero, 27; Edgar Javier Bello Murillo, 27; Hector Leonardo Lopez, 34; and Andrés Alvaro Oviedo-Garcia, 22, are each charged with second degree murder, kidnapping and conspiracy to kidnap.  Oviedo-Garcia is also charged with assault.  Wilson Daniel Peralta-Bocachica, 31, is charged for his alleged efforts to destroy evidence associated with the murder of Special Agent Watson.  Trial is set for Jan. 12, 2015.

The charges in the indictment 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.

RICHMOND, Va. – Mohamed Seid Ahmed Mohamed, 56, of North Chesterfield, Virginia, pleaded guilty today to conspiracy to commit wire fraud and to traffic in contraband cigarettes.

Dana J. Boente, United States Attorney for the Eastern District of Virginia; and Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service Criminal Investigation’s Washington, D.C., Field Office, made the announcement after the plea was accepted by United States Magistrate Judge David J. Novak.

Mohamed was charged with the conspiracy on August 25, 2014, in a one-count criminal information.  He faces a maximum penalty of 5 years’ imprisonment, full restitution, and a fine of $250,000, when he is sentenced on December 11, 2014 before Senior United States District Judge Robert E. Payne.

According to the statement of facts filed with the plea agreement, Mohamed was the owner and operator of The Cigarette Club, LLC, a cigarette retail store in Richmond, Virginia, doing business under the name City Cigarettes.  From June 2011 to Jan. 2014, Mohamed and his co-conspirators purchased over 440,000 cartons—worth approximately $19.8 million—of various brands of cigarettes at wholesale stores in the Richmond area using multiple membership accounts.  In making the purchases, Mohamed and his co-conspirators certified that the cigarettes would be resold through Mohamed’s retail business.  As a result, Mohamed and his co-conspirators were able to purchase the cigarettes without paying the applicable Virginia Retail Sales and Use Tax.  However, at the time of each purchase, Mohamed and his co-conspirators intended to sell, and ultimately did sell, the overwhelming majority of the cigarettes to individuals who they knew were transporting the cigarettes to jurisdictions outside of the Commonwealth of Virginia for resale as untaxed cigarettes.  Mohamed and his co-conspirators never intended to and, in fact, did not collect or pay, the applicable Virginia Retail Sales and Use Tax for the cigarettes purchased at the wholesaler.  The activity of the conspiracy resulted in lost sales tax revenue to the Commonwealth of Virginia in the amount of $1,009,046.

This case was investigated by the Internal Revenue Service, with assistance from the Multi-Jurisdictional Special Operations Group.  Assistant United States 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 United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.

NORFOLK, Va. – Donte Demus, 26, of Norfolk, Va., pleaded guilty today in Norfolk federal court to wire fraud and aggravated identity theft for his role in a scheme to steal identities and file false income tax returns with the Internal Revenue Service (IRS).

Dana J. Boente, United States Attorney for the Eastern District of Virginia, made the announcement after the plea was accepted by United States District Judge Raymond A. Jackson.  Demus will be sentenced on December 4, 2014 and faces a mandatory minimum sentence of 2 years and a maximum sentence of 22 years in federal prison.

According to court documents, Demus, along with two other conspirators, devised a scheme by which they stole the identities of individuals and used them to file false income tax returns with the IRS.  Demus obtained a number of identities from Travis Hager, a co-conspirator who was incarcerated in the Virginia Beach jail.  Demus passed these identities to a third co-conspirator who actually filed the false returns.  The refunds were then sent on a prepaid debit card to Demus at an address in Norfolk, Virginia.  According to the indictment, Demus and his co-conspirators attempted to fraudulently obtain in excess of $163,000 in fraudulent tax refunds.  As part of his plea agreement, Demus agreed to make restitution to the United States Treasury.

Travis Hager previously pleaded guilty for his role in the scheme on June 4, 2014.  He is scheduled to be sentenced on October 1, 2014.

This case was investigated by the Internal Revenue Service, Criminal Investigation Division.  Assistant United States Attorney Joseph Kosky prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.

NORFOLK, Va. – Jeffrey Washington, 36, of New York, NY, pled guilty yesterday to conspiracy to commit bank fraud and aggravated identity theft.

Dana J. Boente, United States Attorney for the Eastern District of Virginia made the announcement after the plea was accepted by U. S. District Judge Arenda L. Wright Allen.

Washington was charged in a criminal indictment returned on May 12, 2014, with one count of conspiracy to commit bank fraud, ten counts of bank fraud, seven counts of aggravated identity theft, and two counts of interstate transportation of property converted or taken by fraud. Washington faces a maximum penalty of thirty (30) years in prison on the bank fraud charge and a $1,000,000 fine, and a maximum penalty of a mandatory two (2) years in prison on the aggravated identity theft charge and a fine of $250,000 when he is sentenced on December 5, 2014, in Norfolk.

According to a statement of facts filed with his plea agreement, Washington was a leader of a group that conspired to steal identity and financial information from Wells Fargo Mortgage offices.  There were twelve Wells Fargo offices in New York, Pennsylvania, Maryland and New Jersey that were the subject of burglaries from 2012 through 2014.  Over 1,800 mortgage files were stolen that contained identity and financial information.  The Wells Fargo mortgage customers had bank accounts at various financial institutions including Wells Fargo Bank, M&T Bank, PNC Bank, Capital One Bank, and TD Bank. 

From 2012 – 2013,  Washington and other conspirators traveled from New York to Virginia and other states along the East Coast in order to conduct the scheme.  They impersonated various bank customers, using counterfeit identifications created from the stolen personal information, and opened business accounts in fake business names in order to drain legitimate customer accounts at various banks of hundreds of thousands of dollars.  In August 2013, conspirator Alice Howard was arrested in the course of impersonating a bank customer at a Wells Fargo bank branch in Ashland, Virginia.  Howard was charged with the same scheme and was sentenced to sixty-five (65) months imprisonment in April 2014.  Following Howard’s arrest, Washington continued his involvement in obtaining mortgage files through the burglaries of other mortgage offices.  Currently, two other individuals have been charged in the scheme.   

This case was investigated by the United States Secret Service, the United States Postal Inspection Service and the Newport News Police Department.  Assistant U. S. Attorney Brian Samuels is prosecuting the case on behalf of the United States.

District of Virginia at http://www.justice.gov/usao/vae.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.

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ALEXANDRIA, Va. – A fourth grade teacher from Charlottesville, Virginia was sentenced today to ten years in prison, followed by ten years of supervised release, for enticing and coercing a 15-year-old girl to engage in sexually explicit online chats.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Timothy A. Gallagher, Acting Assistant Director in Charge of the FBI’s Washington Field Office; Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police; Timothy J. Longo, Charlottesville Chief of Police; and Stephan M. Hudson, Prince William County Chief of Police, made the announcement after sentencing by U.S. District Judge Claude M. Hilton.

Corey Schock, 44, pleaded guilty on June 12, 2014 to online coercion and enticement of a minor.  According to court documents, Schock engaged in sexually explicit online chats with a 15-year-old female who lived in Woodbridge, Virginia using the Kik Interactive, Skype, and SnapChat programs.  In those chats, Schock sent the girl several sexually explicit pictures of himself, and he requested that she send him sexually explicit pictures.  In response, the girl sent Schock pictures and videos of herself engaging in sexually explicit behavior.  Schock and the girl also discussed meeting in person to engage in sexual activity, and both specifically referred to their respective ages during online chats.

According to court records and proceedings, Schock engaged in similar conduct over a two-year period with numerous underage girls, 18 of whom have been positively identified by the FBI to date.

This case was investigated by the FBI’s Washington Field Office and the Fairfax County, Charlottesville, and Prince William County police departments.  Assistant U.S. Attorney Matt J. Gardner is prosecuting the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-196.

ALEXANDRIA, Va. – An Arlington, Virginia doctor and five co-conspirators were indicted by a federal grand jury yesterday for operating an oxycodone distribution ring in which the participants allegedly wrote, filled, and sold fraudulent prescriptions for over 11,000 oxycodone pills and other controlled substances throughout Virginia and in other states.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Timothy A. Gallagher, Acting Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement.

The six indicted defendants reside in Virginia and include Dr. Derron McRae Simon, 45, of Midlothian; Donald Alvin Petties, 51, of Sterling; Ereida Arlett Escobar, 23, of Falls Church; Linda Dao, 21, of Arlington; Michael Harris, 21, of Falls Church; and Aaron Kwon, 29, of Manassas.  All six defendants are charged with one count of conspiracy to distribute and dispense controlled substances and one or more counts of possession with the intent to distribute controlled substances.  Simon also is charged with three counts of distributing a controlled substance to persons under the age of 21, and both Simon and Petties are charged with one count of aggravated identity fraud.

According to the nine-count indictment, from January 2013 until around July 2014, Simon was the chief medical director, and often the primary or only medical doctor, at WithinMe MD, a wellness practice in Arlington.  From November 2008 until July 2014, Simon’s medical license was restricted by the Virginia Board of Medicine after having either been suspended or placed on probation.  Simon’s license was summarily suspended on July 11, 2014.

According to court records, beginning in February 2013, Simon and the other five defendants conspired to distribute oxycodone throughout Virginia and other states.  Simon allegedly wrote and sold hundreds of prescriptions for oxycodone and other controlled substances, despite knowing that the individuals in whose names the prescriptions were written were abusing, misusing, distributing, and/or selling the drugs.  Simon allegedly had never met many of these purported patients, and he also wrote prescriptions in the names of his five co-conspirators, as well as friends, relatives, and fictitious individuals.

According to the indictment, Simon directed Escobar, a receptionist and medical assistant at Simon’s practice, to confirm calls from pharmacists seeking to verify his oxycodone prescriptions.  Simon also allegedly directed Escobar to create fraudulent patient history forms and medical records to make it appear that these individuals were actually legitimate patients.  Around May 2013, Simon purchased a pill press so that he and Petties allegedly could make homemade oxycodone tablets without having to go through pharmacies.

The indictment alleges that the defendants conspired to distribute well over 11,000 oxycodone 30 mg pills, for a total value of over $735,000.  For each fraudulent prescription, Simon and/or Escobar received approximately $500 to $1,000.

Each of the defendants faces a maximum penalty of 20 years in prison and a $1 million fine if convicted of the charged conspiracy or possession offenses.  Additionally, Simon faces a mandatory minimum sentence of one year and a maximum penalty of 40 years in prison if convicted of distributing oxycodone to a person under the age of 21.  Simon and Petties also face a mandatory two-year consecutive term in prison if convicted of aggravated identity fraud.

This case was investigated by the FBI’s Washington Field Office.  Special Assistant U.S. Attorneys Jason M. Scheff and Allison Ickovic are prosecuting the case.

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

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-300.

RICHMOND, Va. – Shawn Rives, 33, of Petersburg, Virginia, was sentenced yesterday to 210 months in prison, followed by four years of supervised release, for possession with intent to distribute crack cocaine.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; and John I. Dixon III, Petersburg Chief of Police, made the announcement after sentencing by U.S. District Judge James R. Spencer.

Rives was indicted on Oct. 16, 2013 on two counts of possession with intent to distribute cocaine base, commonly known as “crack,” and three counts of possession with intent to distribute cocaine hydrochloride.  When Rives failed to appear at his arraignment on the charges on Nov. 7, 2013, the court issued a warrant for his arrest.  Rives remained a fugitive until Feb. 25, 2014, when the U.S. Marshal Service Fugitive Task Force, in conjunction with the FBI, arrested Rives at an apartment complex in Richmond, Virginia.  According to an affidavit filed in the case, as the Fugitive Task Force agents made entry into the apartment, Rives kicked through the drywall of a closet in the residence, squeezed through the wall, and entered the adjacent apartment through the bedroom closet, where he attempted to hide.

Rives pleaded guilty on May 22, 2014 to distributing crack cocaine.  According to court documents, law enforcement officers executed search warrants in March and October 2012 at residences in Petersburg where Rives was staying, or that were associated with him.  At both locations, authorities recovered cocaine, chemicals used to prepare cocaine for sale, digital scales, baggies for distribution, and U.S. currency from the sale of cocaine.  In addition, in June 2012, during a search incident to the arrest of Rives, officers recovered cocaine and $2,472 from Rives, along with additional cocaine and a digital scale from a vehicle.

In a statement of facts filed with his guilty plea, Rives admitted that he distributed at least five kilograms of cocaine hydrochloride and between one kilogram and 2.8 kilograms of cocaine base during 2013.
This case was investigated by the FBI’s Richmond Field Office and the Petersburg Bureau of Police.  Assistant U.S. Attorney Angela Mastandrea-Miller prosecuted the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:13-cr-175.

RICHMOND, Va. – Shawn Rives, 33, of Petersburg, Virginia, was sentenced yesterday to 210 months in prison, followed by four years of supervised release, for possession with intent to distribute crack cocaine.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; and John I. Dixon III, Petersburg Chief of Police, made the announcement after sentencing by U.S. District Judge James R. Spencer.

Rives was indicted on Oct. 16, 2013 on two counts of possession with intent to distribute cocaine base, commonly known as “crack,” and three counts of possession with intent to distribute cocaine hydrochloride.  When Rives failed to appear at his arraignment on the charges on Nov. 7, 2013, the court issued a warrant for his arrest.  Rives remained a fugitive until Feb. 25, 2014, when the U.S. Marshal Service Fugitive Task Force, in conjunction with the FBI, arrested Rives at an apartment complex in Richmond, Virginia.  According to an affidavit filed in the case, as the Fugitive Task Force agents made entry into the apartment, Rives kicked through the drywall of a closet in the residence, squeezed through the wall, and entered the adjacent apartment through the bedroom closet, where he attempted to hide.

Rives pleaded guilty on May 22, 2014 to distributing crack cocaine.  According to court documents, law enforcement officers executed search warrants in March and October 2012 at residences in Petersburg where Rives was staying, or that were associated with him.  At both locations, authorities recovered cocaine, chemicals used to prepare cocaine for sale, digital scales, baggies for distribution, and U.S. currency from the sale of cocaine.  In addition, in June 2012, during a search incident to the arrest of Rives, officers recovered cocaine and $2,472 from Rives, along with additional cocaine and a digital scale from a vehicle.

In a statement of facts filed with his guilty plea, Rives admitted that he distributed at least five kilograms of cocaine hydrochloride and between one kilogram and 2.8 kilograms of cocaine base during 2013.
This case was investigated by the FBI’s Richmond Field Office and the Petersburg Bureau of Police.  Assistant U.S. Attorney Angela Mastandrea-Miller prosecuted the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:13-cr-175.

ALEXANDRIA, Va. – Two managers of McLean, Virginia-based Integrated Academics and a former admissions official for Strayer University have been convicted of conspiring to create fraudulent transcripts so that foreign students would appear eligible to retain their student visas in the United States.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Washington, D.C., made the announcement.

Mohamad Yousef Tellawi, 34, of Falls Church, Virginia, was sentenced today by U.S. District Judge T.S. Ellis, III to 22 months in prison, followed by three years of supervised release, for participating in the immigration document fraud conspiracy.  Co-conspirators Lea Dzhin, 37, of Falls Church, Virginia, and Maher Khudari, 28, of Arlington, Virginia, previously pleaded guilty and were sentenced for their roles in the conspiracy.  Tellawi and Dzhin also were ordered to forfeit $265,000 in proceeds from the fraud, and Khudari was ordered to forfeit $30,747.65.

According to court records, Tellawi and Dzhin are managers of Integrated Academics, a company that caters to international students and touts itself as offering a full range of services for students, including securing college admissions and providing academic advising and tutoring.

From about November 2012 to October 2013, Tellawi and Dzhin conspired with Khudari, an admissions official at Strayer University, to fraudulently create at least 58 official Strayer University transcripts in order to help clients of Integrated Academics retain their F-1 non-immigrant student visas and remain in the United States.  Tellawi then would complete the necessary paperwork containing the fraudulent transcripts and meet with school officials on behalf of Integrated Academics’ student clients.  In addition, Tellawi and Dzhin would facilitate their clients’ continued presence as student visa holders by hiring people to take online classes, write papers and take tests for the clients.

This investigation was conducted by ICE-HSI, with assistance from the Internal Revenue Service, Northern Virginia Community College Police Department, and Strayer University.  Special Assistant U.S. Attorney C. Alexandria Bogle is prosecuting this case, with assistance from Special Assistant U.S. Attorneys William P. Jauquet and David Tyler.

Anyone with information concerning immigration fraud involving international students is urged to contact ICE-HSI’s tipline at 1-866-DHS-2-ICE or by email through the website www.ice.gov.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-136.

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ALEXANDRIA, Va. – Mauricio Florian-Polanco, a 39-year-old illegal immigrant from Guatemala who was residing in Manassas, Virginia, pleaded guilty yesterday to conspiracy to commit immigration document fraud.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations Washington (HSI); and Douglas Keen, Chief of the City of Manassas Police Department, made the announcement after the plea was accepted by U.S. District Judge T.S. Ellis, III.

Florian-Polanco faces a maximum penalty of five years in prison when he is sentenced on Dec. 12, 2014.

In a statement of facts filed with the plea agreement, Florian-Polanco admitted to conspiring with others to falsely make Social Security cards and alien registration receipt cards, more commonly known as Green Cards, for individuals whom he believed were illegal immigrants on at least 50 occasions.  In furtherance of the conspiracy, Florian-Polanco would meet with individuals who were looking to obtain counterfeit documents, including government agents acting in an undercover capacity, and take their biographic information.  Florian-Polanco then would meet with a co-conspirator who would, in turn, create the counterfeit documents.

This case was investigated by ICE-HSI and the City of Manassas Police Department, with assistance from the Northern Virginia Gang Task Force.  Special Assistant U.S. Attorney C. Alexandria Bogle is prosecuting the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-283.

ALEXANDRIA, Va. – A leader of a drug trafficking organization based in Guatemala, along with a U.S.-based associate, were indicted by a federal grand jury today for participating in a conspiracy to import and distribute multiple kilograms of heroin and cocaine into the United States.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations Washington (HSI), made the announcement.

Lelo Sandoval, 47, of Jalapa, Guatemala, and Cesar Duran, 55, of Chicago, Illinois, were indicted on four counts of conspiracy to import and distribute one kilogram or more of heroin and at least five kilograms of cocaine.  Sandoval and Duran each face a maximum penalty of life in prison if convicted.

According to the indictment, from late 2009 until September 2013, Sandoval served as a leader of a drug trafficking organization in Guatemala that imported heroin and cocaine from Guatemala and Honduras into the United States through the use of human couriers.  The couriers often traveled on commercial airliners that landed in various U.S. airports, including Dulles, JFK and O’Hare, and they smuggled the drugs within their luggage in containers marked as containing food and drinks—for example, juice boxes, refried beans and powdered milk.  The couriers also drove vehicles carrying concealed heroin and cocaine over the U.S.-Mexico border, while other packages were delivered through the U.S. mail system.

After importation, the heroin and cocaine would be distributed and sold in the United States by members of the drug trafficking organization.  The indictment identifies ten occasions from late 2009 through March 2013 in which members of the conspiracy smuggled or attempted to smuggle at least 28 kilograms of heroin and 13 kilograms of cocaine.  In September 2013, Sandoval and Duran were arrested together in Guatemala while in possession of several kilograms of heroin.

This case was investigated by ICE-HSI, with assistance from the Drug Enforcement Administration and Customs and Border Protection.  Special Assistant U.S. Attorney Catherine S. Ahn and Assistant U.S. Attorney Jonathan Fahey are prosecuting the case.

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

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-289.

RICHMOND, Va. – Daniel L. Jones, age 56, of Fredericksburg, Virginia was sentenced today to 37 months’ imprisonment for aiding in the preparation of fraudulent tax returns for his clients and making a false statement to the Internal Revenue Service.

Dana J. Boente, United States Attorney for the Eastern District of Virginia; Special Agent in Charge Thomas J. Kelly, of the Internal Revenue Service, Washington Field Office; and Special Agent in Charge Robert M. Geary of the Treasury Inspector General for Tax Administration, Washington Field Office, made the announcement after the sentencing before United States District Judge Robert E. Payne. 

According to court documents, Jones ran a tax preparation service for many years in Fredericksburg called the Tax Doctor Plus.  To increase refunds for his clients, Jones regularly prepared and electronically filed tax returns that contained false entries and items.  These included:  (a) improperly splitting married couples into incorrect filings statuses in order to place both taxpayers into lower tax brackets and create earned income credit opportunities for both; (b) filing false Schedules C, Business Income or Loss, with enough false deductions so that the client would qualify for the earned income tax credit; (c) submitting false Schedule A expenses and education credits when there was no basis to claim such deductions or credits; and (d) false income with false W-2’s to qualify the taxpayers for the maximum amount of government credits, such as the earned income credit, various education credits, and the making work pay credit.

In addition, in order to represent his clients before the Internal Revenue Service, Jones submitted to the IRS false Forms 2848 (Power of Attorney and Declaration of Representative) on which he falsely claimed he was a certified public accountant.  He has agreed that the total tax loss from 2009 to 2012 is approximately $598,000.  This amount was based on approximately 630 returns containing false educational credits.  

This case was the product of an investigation by the Internal Revenue Service, Treasury Inspector General for Tax Administration and the United States Attorney’s Office.  Assistant United States 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-049.