Eastern District of Virginia

NORFOLK, Va. – Nicole Racquel Drakeford, 44, of Fountain Island, S.C., was sentenced today to 147 months in prison, followed by a term of supervised release, for armed bank robbery and using, carrying and brandishing a firearm during and in relation to a crime of violence.

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 sentencing by Senior United States District Judge Henry Coke Morgan, Jr.

Drakefordpleaded guilty on January 27, 2014.  According to the statement of facts that were filed with her plea agreement, Drakeford took responsibility for committing a series of bank robberies across Virginia.  Drakeford admitted that she robbed the Bank of America in Fairfax County, Virginia on July 15, 2013 and walked away with $5598.00.  She admitted that on July 20, 2013, she robbed the United Bank in Fairfax County and took $1321.00.  She also admitted that on July 31, 2013 she robbed a Chartway Federal Credit Union (FCU) in Chesapeake, Virginia with a gun and took approximately $302.00.

This case was investigated by the Federal Bureau of Investigation’s Norfolk Field Office and the Chesapeake Police Department.   Managing Assistant United States Attorney Benjamin L. Hatch 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.

Defendant Filed False Income Tax Returns in Names of Clients and Pocketed the Refunds

ALEXANDRIA, Va. – Thuy Tien Le, 40, of Sterling, Va., pleaded guilty today to aiding in the preparation of false income tax returns and to wire fraud, in connection with her operation of a tax return preparation business called T2 Advantage Services, LLC.

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 Investigation, made the announcement after the plea was accepted by U.S. District Judge Claude M. Hilton.

Le faces a maximum penalty of three years in prison on the tax charge and 20 years in prison on the wire fraud charge when she is sentenced on July 18, 2014.

In a statement of facts filed with her plea agreement, Le admitted that from 2005 through 2013, she owned T2 Advantage Services, LLC, a tax return preparation business she operated from her home in Fairfax, Va.  Le prepared federal income tax returns for her clients and led them to believe she had electronically filed legitimate returns with the IRS.  Le admitted, however, that prior to filing, she altered the returns by adding false itemized deductions in order to generate large income tax refunds.  Le admitted that she prepared and filed false income tax returns in this manner for at least 50 clients, without their knowledge or consent, and that she caused the fraudulently generated income tax refunds to be deposited electronically into bank accounts she controlled.  She further admitted that she caused $454,455 in losses to the IRS.

This case was investigated by IRS Criminal Investigation.  Assistant U.S. Attorney Paul J. Nathanson 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 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. – Carlos McClammy, 21, of Virginia Beach, Va., was sentenced today to 432months in prison for his role in the robbery of six financial institutions in Virginia.  Previously, McClammy’s co-conspirators, Taleak Harris and Jaquan Douglas, pled guilty to participating in a total of 11 armed robberies in the Eastern District of Virginia.  On October 2, 2013, Harris was sentenced to 108 months’ imprisonment.  On December 17, 2013, Douglas was sentenced to 432 months’ imprisonment.

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; Bruce Jones, Northampton County Commonwealth Attorney; William W. Davenport, Chesterfield County Commonwealth Attorney; Lyndia P. Ramsey, Sussex County Commonwealth Attorney; and Colin Stolle, City of Virginia Beach Commonwealth Attorney, made the announcement after sentencing by United States District Judge Henry E. Hudson.

McClammypled guilty on January 28, 2014, admitting to his participation in the March 13, 2012 robbery of the SunTrust Bank, located in Nassawadox, Virginia; the March 27, 2012 robbery of the Bank of Southside Virginia, located in Jarratt, Virginia; the April 3, 2012 robbery of the Central Virginia Bank, located in Midlothian, Virginia; the April 19, 2012 robbery of the BB&T Bank, located in Wakefield, Virginia; the April 23, 2012 robbery of the Bank of Southside Virginia, located in Stony Creek, Virginia; and the July 10, 2012 robbery of the Chartway Federal Credit Union, located in Virginia Beach, Virginia.  During the July 20, 2012 robbery, McClammy discharged his firearm inside the credit union in an effort to intimidate the bank teller. 

This case was investigated by the Federal Bureau of Investigation, the Northampton Sheriff’s Office, the Chesterfield County Police Department, the Sussex County Sheriff’s Office, and the City of Virginia Beach Police Department.  Assistant United States Attorneys Erik S. Siebert and Peter Duffey 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. – Stephen Ron Martin II, 20, of Virginia Beach, Va., was charged with distribution of heroin resulting in death in a criminal complaint that was filed on April 21, 2014 and unsealed today.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, Acting Special Agent in Charge Katrina Berger,   U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, and Police Chief Jim A. Cervera, Virginia Beach Police Department, made the announcement.

Martin faces a mandatory minimum of 20 years in prison and maximum penalty of life in prison if convicted.     

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

This case was investigated by HSI Norfolk and the Virginia Beach Police Department.  Assistant United States Attorney Darryl Mitchell is prosecuting the case on behalf of the United States.   

Criminal complaints 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 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. – Daniel L. Jones, 56, of Stafford, pled guilty to two counts of aiding in the preparation of fraudulent tax returns for his clients and one count of making a false statement to the Internal Revenue Service that he was a certified public accountant.      

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 Investigation, made the announcement after the guilty plea in front of Magistrate Judge David J. Novak.  Jones will face a maximum exposure of 11 years in prison, 3 years of supervised release, $750,000 in fines, and full restitution when he is sentenced on August 21, 2014, before United States District Judge Robert E. Payne.

According to the court documents, Jones ran a tax preparation service for many years in the Fredericksburg area called the Tax Doctor Plus.  To increase refunds for his clients, he regularly prepared and electronically filed tax returns that contained false entries and items.  These included:  (a) improper filings statuses for married couples to place both taxpayers into lower tax brackets and create earned income credit opportunities for both; (b) false Schedules C, Business Income or Loss, with enough false deductions so that the client would qualify for the earned income tax credit; (c) 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 taxpayer for the maximum amount of government credits, such as the earned income credit, various education credits, and the making work pay credit. 

In addition, 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 for the various false returns from 2009 to 2012 is approximately $600,000. 

This case was the product of an investigation by the Internal Revenue Service, the Treasury Inspector General for Tax Administration (TIGTA) and the U.S. 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 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. – Darius Nicholson, 33, of Baltimore, Maryland, pleaded guilty today to a single-count indictment charging him with conspiracy to distribute 100 grams or more of heroin, oxycodone and ecstasy pills.

Dana J. Boente, United States Attorney for the Eastern District of Virginia; Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after the plea was accepted by U.S. District Judge Anthony J. Trenga.

Nicholson faces a mandatory minimum term of ten years in prison and a maximum term of life imprisonment when he is sentenced on July 25, 2014.

In a statement of facts filed with the plea agreement, Nicholson admitted that from about February 2012 until February 2013, he distributed various quantities of heroin, oxycodone and ecstasy pills to a co-conspirator who delivered the illegal drugs to a customer in the Eastern District of Virginia.  During the course of the conspiracy, Nicholson distributed approximately 196 grams of heroin, 75 oxycodone pills and 11,600 ecstasy pills.  The conspirators obtained approximately $89,750.00 in profit from the sales of illegal drugs.

This case was investigated by the DEA and the Fairfax County Police Department.  Assistant U.S. Attorney Adam B. Schwartz and Special Assistant U.S. Attorney Nicholis D. Mutton 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.

ALEXANDRIA, Va. – Yousef Mohamid Al-Khattab (a.k.a. Joseph Cohen), 45, of Atlantic City, New Jersey, was sentenced today to 30 months in prison for using his position as a leader of the “Revolution Muslim” websites to use the Internet to place others in fear of serious bodily injury.

Dana J. Boente, United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and William J. Bratton, New York City Police Commissioner, made the announcement after the plea was accepted by U.S. District Judge Liam O’Grady.

According to court records, Al-Khattab and his colleague, Jesse Curtis Morton (a.k.a. Younus Abdullah Muhammad), founded the Revolution Muslim organization in December 2007 to operate Internet platforms and websites to encourage Muslims to support Usama bin Laden, Anwar Al Awlaki, al Qaida, the Taliban and others engaged in or espousing violent jihad.

On Jan. 8, 2009, Al-Khattab posted to the Revolution Muslim website a video encouraging viewers upset about the conflict in Gaza to seek out the leaders of Jewish Federation chapters in the U.S. and “deal with them directly at their homes.”  Al-Khattab gave the names and addresses of synagogues in New York and another Jewish organization in Brooklyn.

On Jan. 20, 2009, Al-Khattab posted a video and photo of the headquarters of the Jewish organization in Brooklyn, with a map and directions to specific facilities.  Al-Khattab also posted a link to “The Anarchist Cookbook,” which is a manual for (among other things) constructing and using explosive devices.  On Jan. 23, 2009, Al-Khattab posted to the Revolution Muslim website a video accusing the Jewish organization of funding terrorism, and urging viewers to find the leaders of Jewish organizations and “hold them responsible.”

As part of the statement of facts accompanying his plea agreement, Al-Khattab admitted that he knew some viewers of the Revolution Muslim websites were inclined to violence, and by making the posts involving Jewish organizations in 2009, Al-Khattab was trying to frighten Jews and Jewish organizations.

On June 22, 2012, Revolution Muslim founder Jesse Morton was sentenced to 138 months in prison.  On Feb. 24, 2011, Revolution Muslim administrator Zachary Chesser was sentenced to 25 years in prison.

This investigation was conducted by the FBI’s Washington Field Office and the New York City Police Department’s Intelligence Bureau.  Assistant U.S. Attorney Gordon D. Kromberg and Special Assistant U.S. Attorney Allison Ickovic of the U.S. Attorney’s Office for the Eastern District of Virginia, along with Trial Attorney John T. Gibbs of the Justice Department’s Counterterrorism Section in the National Security Division, are prosecuting the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia 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. – Jonathan Hartwell Wolberg, 31, of Tucson, Az., was sentenced today to 33 months in prison, followed by 3 years of supervised release, for intentionally causing damage to a protected computer.

Dana J. Boente, United States Attorney for the Eastern District of Virginia and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by United States District Judge Liam O’Grady.

Wolberg pleaded guilty on January 6, 2014. According to court documents, Wolberg formerly worked as a systems administrator for a company identified as “Company A,” a cloud-computing services provider headquartered in the Eastern District of Virginia.  After resigning, Wolberg continued to enter the networks of Company A for the purpose of damaging its servers, its reputation, and its business.  From about March 16, 2012 through about August 1, 2012, Wolberg encouraged Company A’s customers to leave and secretly logged into Company A’s server to issue a shutdown command to a key data server.  As a result, he shut down Company A’s customer networks, making key information – including that of hospitals responsible for surgery and other urgent patient care – unavailable for at least several hours.  Wolberg caused hundreds of thousands of dollars of damage as a result.

This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Alexander T.H. Nguyen 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. – Jorge Avila Torrez, 25, of Zion, Illinois, was sentenced to death today by a federal jury for the premeditated murder on July 11, 2009 of Amanda Jean Snell, 20, in her room at Keith Hall, an enlisted barracks aboard Joint Base Myer-Henderson Hall in Arlington, Va.

U.S. District Judge Liam O’Grady continued sentencing until May 30, 2014, to give Torrez an opportunity to file any post-trial motions.

Dana J. Boente, United States Attorney for the Eastern District of Virginia; Rocco Pierri, Special Agent in Charge of the Naval Criminal Investigative Service’s (NCIS) Washington Field Office; and M. Douglas Scott, Arlington County Chief of Police, made the announcement after the verdict was accepted by Judge O’Grady.

Torrez was indicted on May 26, 2011, by a federal grand jury for the premeditated murder of Snell, who was serving as a Petty Officer Second Class for the U.S. Navy.  According to court records and evidence at trial, at the time he murdered Snell, Torrez was a corporal in the U.S. Marine Corps and lived in a room on the same deck as Snell’s, eight doors away.  Torrez later told a prisoner with whom he was detained in the Arlington County Detention Center that he entered Snell’s room through her unlocked door, jumped on her as she slept in her bed, bound her wrists with the power cord from her laptop computer and strangled her with the rest of the cord.  Torrez stated that he then dragged Snell’s body from the bed to a wall locker, in which he hid her remains.  Snell was discovered there by her Navy supervisor on Monday morning, July 13, 2009, when she failed to report for duty at 11:00 p.m. on the previous Sunday night at the Pentagon.

On April 8, 2014, following a six-day trial, a jury convicted Torrez of the premeditated murder of Snell.  That same jury began hearing evidence on April 21, 2014, to determine whether he should receive the death penalty or life imprisonment without the possibility of release.  Besides evidence relating to Snell’s murder, the jury considered evidence related to Torrez’s prior convictions for having abducted three young women in Arlington, Va. in February 2010, one of whom he raped, sodomized, strangled and left for dead, for which he is currently serving five life sentences in Red Onion State Prison.

This case was investigated by NCIS and the Arlington County Police Department.  Assistant U.S. Attorneys Michael E. Rich, Jonathan L. Fahey, James L. Trump and Special Assistant U.S. Attorney Robert J. Heberle 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 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.

ORFOLK, Va. – David R. Flynn, 44, of Norfolk, Va., pleaded guilty today to mail fraud and unlawful monetary transactions.  

Dana J. Boente, United States Attorney for the Eastern District of Virginia, Royce E. Curtin, Special Agent in Charge of the FBI’s Norfolk Field Office; Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation Field Office in Washington, D.C. (IRS-CI); William Frantzen, Special Agent in Charge of the United States Secret Service’s Richmond Field Office, Gary Barksdale, Inspector in Charge of the Washington Division of the United States Postal Inspection Service, made the announcement after the plea was accepted by Senior United States District Judge Henry Coke Morgan, Jr.

Flynn faces a maximum penalty of 20 years in prison for mail fraud and a maximum penalty of 10 years in prison for unlawful monetary transactions when heis sentenced on July 7, 2014.  

According to a statement of facts filed with the plea agreement, Flynn, an attorney licensed to practice law in Virginia and owner of Assured Title of Virginia, LLC in Virginia Beach, stole over two million dollars from real estate trust accounts in order to cover up problems with his Wells Fargo escrow account that dated back to 2008.  Flynn also used the stolen funds to pay a personal credit card, to travel to tropical destinations, sometimes paying for friends to join him, and on at least one occasion, to charter a private plane. 

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

A copy of this press release may be found on the website of the 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.

NEWPORT NEWS, Va. – Salvatore Lopiccolo, age 35 of Newport News Va., pleaded guilty today to Conspiracy to Distribute Analogues, Cocaine, Cocaine Base, Methylone, Marijuana, Psilocybin and drug paraphernalia.

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 Magistrate Judge Douglas Miller in Newport News.

Lopiccolo was indicted by a federal grand jury on November 14, 2013.  He faces a maximum penalty of 20 years imprisonment and a fine of $1,000,000 when he is sentenced on July 24, 2014 in Norfolk, VA.

In a statement of facts filed with the plea agreement, the defendant was responsible for conspiring with others to distribute and possess with intent to distribute a variety of drugs and drug analogues from Bonsai Pipe and Tobacco. Multiple controlled purchases of cocaine, crack cocaine, marijuana, methylone, psilocybin, drug analogues and drug paraphernalia were made from Bonsai, the defendant and Bonsai employees.

This case was investigated by Homeland Security Investigations, the Internal Revenue Service – Criminal Investigations, the United States Postal Inspection Service, the Virginia State Police Tri-Rivers and Peninsula Task Forces the United States Air Force Office of Special Investigations and the York County Sheriff’s Office. Assistant United States Attorney Eric M. Hurt 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. – Eugene Asomani Williams, also known as “Shine,” 35, of Washington, D.C., was sentenced today to 30 years in prison for conspiring to distribute heroin and possessing a firearm in furtherance of this offense.  At least three individuals died in Fairfax County, Va. as a result of heroin distributed by Williams.

Dana J. Boente, United States Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; and Colonel Edwin C. Roessler, Jr., Fairfax County Chief of Police, made the announcement after Williams was sentenced today by U.S. District Judge Leonie M. Brinkema.

“Williams peddled a dangerous drug and inflicted untold damage to the victims, their families, and our communities,” said U.S. Attorney Boente.  “This case exemplifies the cooperative efforts of federal, state and local law enforcement to combat this pernicious crime.”

Williams pleaded guilty on Jan. 22, 2014 to conspiracy to distribute one kilogram or more of cocaine and possession of a firearm during and in furtherance of a drug trafficking crime.  In a statement of facts filed with the plea agreement, Williams admitted to distributing more than one kilogram of heroin in Virginia, Maryland and the District of Columbia between 2004 and Sept. 26, 2013.  Williams also admitted that Joshua Pearson, 33, of Fairfax County, Va.; Timothy Huffman, 23, an active duty soldier at Fort Belvoir; and Kara Schachinger, 22, of Fairfax County, Va. all died as a result of their use of heroin distributed by the defendant.

“I have heard firsthand from families about the devastation brought by the loss of a loved one in this wave of heroin-related deaths, and about the strain placed on law enforcement and healthcare professionals as they work to respond to it,” said Attorney General Herring.  “Education, prevention and treatment will play a major part in dealing with this emerging threat, but I will also ensure that my office is doing all it can to keep these dangerous drugs, and those who distribute them, off the streets.”

“Today’s sentencing of Eugene Williams closes the book on a drug trafficker who was responsible for trafficking heroin that led to the death of three individuals in Fairfax County, VA,” said Special Agent-in-Charge Karl C. Colder of the Drug Enforcement Administration, Washington Division. “Heroin is a drug that destroys lives, and tragically sometimes takes them. This case clearly demonstrates DEA’s commitment, by working with our law enforcement partners, to stop drug traffickers who profit from the harm (in this case deadly harm), they present to our community,” stated Colder.

"Fairfax County is safer today thanks to the robust partnerships between local, state, and federal law enforcement" said Colonel Edwin C. Roessler, Jr., Fairfax County Chief of Police. "Today’s sentencing is proof positive these partnerships work against drug traffickers and others who set up criminal enterprises in our region."

This case was investigated by the DEA’s Washington Field Division and the Fairfax County Police Department.  Assistant U.S. Attorneys Michael P. Ben’Ary and Julia Martinez and Virginia Assistant Attorney General and Special Assistant U.S. Attorney Marc J. Birnbaum 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 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.

April 15,2014

NORFOLK, Va. – Marcellus N. Williams Jr., a.k.a. “Math,” “P-Shooter,” “Manny,” 27, of Newport News, pleaded guilty today to racketeering conspiracy, as well as possessing and discharging a firearm in furtherance of a crime of violence. 

            Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; David A. O’Neil, Acting Assistant Attorney General for the Justice Department’s Criminal Division; and Royce E. Curtin, Special Agent in Charge of the Federal Bureau of Investigation’s Norfolk Field Office, made the announcement after the plea was accepted by United States Magistrate Judge Tommy E. Miller. 

            Williams was charged in a superseding indictment returned on December 9, 2013, with racketeering conspiracy, two counts of conspiracy to commit murder in aid of racketeering, two counts of attempted murder in aid of racketeering, two counts of possessing and discharging a firearm in furtherance of a crime of violence, and conspiracy to distribute and possess with intent to distribute marijuana.  Williams faces a maximum penalty of 20 years in prison on the racketeering conspiracy charge and a mandatory consecutive sentence of ten years to life in prison on the firearm charge when he is sentenced on July 10, 2014, in Norfolk.

            In a statement of facts filed with his plea agreement, Williams admitted that he was a member of a violent street gang called the Black P-Stones, also referred to as the P-Stone Bloods and Cobra Stones, which operated as a criminal enterprise located primarily in the Beechmont, Courthouse Green, and Woodview neighborhoods in the Denbigh area of Newport News.  The Black P-Stones engaged in various criminal activities including murders, robberies, illegal drug trafficking, and obstruction of justice.  Williams joined the gang in approximately 2002 and held the rank of “First Superior.”  As the First Superior, Williams approved, planned, and participated in criminal activities, including attempted murders, robberies, attempted robberies, and drug trafficking.  On April 27, 2008, Williams and co-conspirators participated in a shooting in broad daylight on Warwick Boulevard in Newport News targeting a rival gang member.  Several bullets were fired at the rival gang member, wounding the rival in the right shoulder, right jaw, and neck areas.  On December 10, 2008, Williams and co-conspirators planned a shooting in Williamsburg to retaliate against a rival gang member who exhibited disrespect toward Williams’s girlfriend.  During the shooting, approximately seven to eight bullets were fired at the rival gang member’s home, with bullets entering the home’s living room and front door while two people were inside.  On March 9, 2009, Williams and co-conspirators planned a shooting in Newport News to retaliate against members of the rival “10-1 Mafia Crips” gang for damaging the reputation of the P-Stones.  Several bullets were fired at a 10-1 Mafia Crip member’s home, with one bullet nearly striking one of the people inside. 

            The investigation of this case was led by the FBI’s Safe Streets Peninsula Task Force, with the assistance of the Newport News Police Department and the James City County Police Department.  Assistant United States Attorney Eric M. Hurt and Trial Attorney Louis A. Crisostomo of the Organized Crime and Gang Section in the Justice Department’s Criminal Division 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.

RICHMOND, Va. – Alexander Edward Bell, 28, of Richmond, Va., pleaded guilty today to Interference with Commerce by Robbery and Using, Carrying, and Brandishing a Short-Barreled Shotgun During and In Relation to a Felony Crime of Violence.  Bell’s coconspirators, Cevin Maurice Johnson, 26, of Richmond, Va., and Jaron Alphonz Minnicks, 21, of Richmond, Va., pleaded guilty to the same charges last week.

Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Washington Field Division; and Richmond Police Chief Ray J. Tarasovic made the announcement after the pleas were accepted by United States District Judge Henry E. Hudson.

Bell, Johnson and Minnicks were indicted on January 21, 2014, by a federal grand jury on charges of Interference with Commerce by Robbery and Using, Carrying and Brandishing a Firearm During and In Relation to a Felony Crime of Violence.  All three men face a maximum penalty of 20 years’ imprisonment on the robbery charge and life imprisonment on the firearm charge when they are sentenced in July 2014.  Bell and Minnicks agreed to recommend to the Court a sentence of 27 years of active incarceration.  Johnson, who served primarily as a getaway driver, made no agreement regarding sentencing.

In a statement of facts filed with the plea agreement, Bell admitted that between October 20, 2013 and December 22, 2013, he committed the armed robberies of the Shop and Go on Mechanicsville Turnpike, Bruce’s Supermarket on Commerce Road, the Night & Day Mart located on Q Street, the One Stop Food Market located on Meadowbridge Avenue, the Clay Street Market located on N. 30th Street, the D.C. Food Market on Brookland Park Boulevard, and the Corner Express Mart on North Avenue, all located in the City of Richmond.  Minnicks admitted to committing all but the Corner Express Mart robbery.  Johnson admitted to committing all but the Shop and Go and Bruce’s Supermarket robberies.  During each of these robberies, one or more of the men would enter the store brandishing a sawed-off shotgun and demand money, while another man would wait outside and serve as a getaway driver.  Approximately $13,000 total was taken during the seven robberies.

This case was investigated by the ATF and the City of Richmond Police Department.  Assistant United States Attorney Olivia L. Norman 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.

NEWPORT NEWS, Va. – Mustafah Kalil Muhammad, 27, of Newport News, Va., pleaded guilty today use of a firearm resulting in the death of Lloyd Robinson on January 8, 2010. 

 Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Royce E. Curtin, Special Agent in Charge of the Federal Bureau of Investigation’s Norfolk Field Office, and Richard W. Meyers, Chief of Newport News Police, made the announcement after the plea was accepted by United States District Judge Raymond A. Jackson. 

 Muhammad was charged, along with others, in a superseding indictment returned in July, 2013, with interference with commerce by robbery and use of a firearm resulting in death.
Muhammad faces a maximum penalty of life in prison when he is sentenced on July 23, 2014, in Norfolk.

 Muhammad is alleged to be part of a criminal organization known locally as “Thug Relations,” alternatively known as “the Duct,” “Warwick Lawnz,” “TR,” and “from the Duct to the Lawnz,” a neighborhood gang operating in the Aqueduct Apartments, St. Michael’s Apartments, Mariner’s Landing Apartments, Heritage Trace Apartments, as well as Warwick Lawns, Warwick Town Home,  Sharon Drive, and the Savage Drive areas of Newport News, Virginia. The alleged gang members are accused in the indictment of protecting their criminal enterprise and activities through murder, attempted murder, witness intimidation, robbery, and narcotics distribution. In a statement of facts filed with his plea agreement Muhammad admitted to his participation in the drug related home invasion and murder of Lloyd Robinson on January 8, 2010. 

This investigation was led by FBI and the Safe Streets Task Force, with assistance from the Newport News Police and the Virginia State Police.  Assistant United States Attorneys Howard J. Zlotnick and Lisa R. McKeel, and Special Assistant United States Attorney Jonathan A. Ophardt 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.

NORFOLK, Va. – Lawrence Leo Hawkins, Jr., 35, of Norfolk, Va., was convicted today by a federal jury of possession with intent to distribute cocaine; possession of heroin; possession of a firearm in furtherance of drug trafficking; and felon in possession of a firearm.

Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Charles E. Smith, Special Agent in Charge of the Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after the verdict was accepted by United States District Judge Arenda Wright Allen.

Hawkins faces a maximum penalty of life in prison when he is sentenced on July 17, 2014.       

Hawkins was previously indicted on December 19, 2012.   According to court records and evidence at trial, the police executed a search warrant at a residence in Norfolk based on the robbery of a cellphone.  GPS indicated that the cellphone was located in or near that residence.  While conducting a search regarding the robbery, the police found significant quantities of cocaine, quantities of heroin, three guns, packaging material, grinders, sieves, scales and other drug related materials.  Several forms of the defendant’s identification were found with these items.  The defendant, who was present at the location, was placed under arrest.  A key found in the defendant’s pocket opened a safe that contained cocaine, heroin, and two firearms.  The robbery of the cellphone was conducted by the son of the defendant’s girlfriend who lived at the residence.  

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney William D. Muhr 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. – David Gil Wilkinson, 43, of Suffolk, Va., was indicted by a federal grand jury today for making death threats against both the President and former First Lady Hillary Clinton.   

Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and William Frantzen, Special Agent in Charge of the United States Secret Service’s Richmond Field Office, made the announcement.   

Wilkinson faces a maximum penalty of 10 years if convicted. 

According to an affidavit previously filed, Wilkinson, a retired Special Forces Navy Chief, called 911 in Southampton County claiming to be a FBI Agent on a secret mission.  When officers responded Wilkinson told them that he was going to run for president and personally execute both the President and Hillary Clinton.  Wilkinson was committed for an emergency mental health evaluation for 72 hours.  Secret Service agents interviewed Wilkinson where he re-iterated his desire to execute the President and Hillary Clinton.  When Wilkinson was released he drove to Henrico County, called 911 and told operators that President Obama was out, people needed to die, and he was part of a group that would take back America.    

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

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

A copy of this press release may be found on the website of the 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.

Defendant engaged in decade-long scheme to export hundreds of kilos of cocaine into U.S.

ALEXANDRIA, Va. – Jairo Cardona, 55, of Medellín, Colombia, pleaded guilty today to conspiracy to distribute five kilograms or more of cocaine for unlawful importation into the United States.

Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Derek S. Maltz, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Special Operations Division, made the announcement after the plea was accepted by U.S. District Judge Leonie M. Brinkema.

Cardona was indicted on Dec. 8, 2011 by a federal grand jury for conspiracy to distribute five kilograms or more of cocaine for unlawful importation into the United States.  Cardona faces a maximum penalty of life in prison when he is sentenced on June 20, 2014.

In a statement of facts filed with the plea agreement, Cardona admitted to being involved in a decade-long scheme to export multi-hundred kilogram shipments of cocaine from Colombia to the United States, by way of Central America and Mexico.  Cardona and his conspirators used aircraft, speedboats and maritime shipments to export the cocaine from Colombia.  Among Cardona’s conspirators was Mexican drug kingpin Joaquin Guzman Loera, also known as “Chapo Guzman.”

This case was investigated by the DEA’s Special Operations Division.  Assistant U.S. Attorney Michael P. Ben’Ary 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 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. – Philip Michael Morris (also known as “Trill Phil”), 27, of Richmond, Va., pleaded guilty today to conspiracy to distribute heroin and possession of a firearm in furtherance of drug trafficking.

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

Morris faces a mandatory minimum of ten years in prison and a maximum penalty of life imprisonment when he is sentenced on June 19, 2014.

In a statement of facts filed with the plea agreement, Morris admitted to working with several co-conspirators to obtain and redistribute heroin in Richmond, Va.  Morris also possessed two firearms in furtherance of the conspiracy, both of which were seized by law enforcement during the investigation.

Several of the defendant’s co-conspirators previously have pleaded guilty.  One co-conspirator, Deonte Lamone Kennedy (also known as “Chop Cold Train”), admitted that the group of heroin dealers discussed the significant risk of their customers dying of heroin overdose.  Kennedy admitted that he told one of his co-conspirators to distance himself from the heroin that the group was selling because it already had caused one overdose death.  Kennedy pleaded guilty on March 14, 2014 to conspiracy to distribute a kilogram or more of heroin and possessing a firearm in furtherance of drug trafficking, and he faces a mandatory minimum of 15 years in prison and a maximum term of life imprisonment when he is sentenced on May 29, 2014.

This case was investigated by the FBI’s Washington Field Office and the Fairfax County Police Department, with assistance from the Drug Enforcement Administration and the Richmond City Police Department.  Assistant U.S. Attorney Lisa L. Owings 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 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. – Jose Rafael Murcia-Garcia, 34, a Mexican National who resided in Boston, Massachusetts, pleaded guilty today to Conspiracy to Engage in Racketeering and Conspiracy to Launder Money.  Murcia-Garcia faces a maximum of 40 years’ imprisonment, a fine of $750,000, and three years of supervised release.  Further, he is illegally within the United States and faces deportation following the service of his prison sentence.

Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; and Katrina W. Berger, Acting Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), made the announcement after the guilty plea was accepted by Magistrate Judge M. Hannah Lauck. 

According to court papers, this defendant is connected to a Fraudulent Document Enterprise (FDE) previously prosecuted in the Eastern District of Virginia in United States v. Israel Cruz Millan, Case No. 3:10CR308.  The FDE originally operated in the United States beginning prior to 2008 and continuing through November 18, 2010, and had cells in Richmond, Norfolk, Virginia Beach, and Manassas, Virginia; Fayetteville and Little Rock, Arkansas; New Haven, Connecticut; Mishawaka, Indiana; Lexington and Louisville, Kentucky; Chelsea, Massachusetts; St. Louis, Missouri; Chapel Hill, Greensboro, Raleigh, and Wilmington, North Carolina; Cincinnati, Ohio; Providence, Rhode Island; and Nashville, Tennessee.   The criminal enterprise was dismantled within the United States on November 18, 2010.  In the prior case and connected prosecutions, a total of 30 defendants were convicted.  On February 16, 2012, United States District Judge James R. Spencer sentenced the overall leader, Israel Cruz Millan to 300 months’ imprisonment.  On March 2, 2012, United States District Judge Henry E. Hudson sentenced Oliverez-Jiminez to two consecutive life terms in prison, after having been convicted by a jury of racketeering, murder, kidnapping, conspiracy to commit money laundering, and conspiracy to produce and transfer false identification documents. 

According to court filings, the FDE restarted its operations while the Israel Cruz Millan, et al. case was still pending.  Beginning at some point prior to February 2012, Manuel Hidalgo Flores, also known as “Chino,” “Chimuelo” and “Julio,” began managing the organization’s operations in the United States, supervising operations in Richmond, Virginia; Springdale, Arkansas; Boston, Massachusetts; Raleigh, North Carolina; Cincinnati, Ohio; and Pawtucket, Rhode Island.  As in the previous case, the FDE produced high-quality false identification cards for distribution to illegal aliens.  In most cities where the organization operated, Hidalgo Flores placed a cell manager to supervise a number of “runners,” the lower level members of the organization who distributed business cards advertising the organization’s services and helped facilitate transactions with customers.  In his sworn Statement of Facts, Jose Rafael Murcia-Garcia, also known as “Juan,” admitted that, while working under Hidalgo Flores, he supervised runners operating in the Boston, Massachusetts cell. 

The cost of fraudulent documents varied depending on the location, with counterfeit Resident Alien and Social Security cards typically selling for approximately $150.  Each cell maintained detailed sales records and divided the proceeds between the runner, the cell manager, and the upper level managers in Mexico.  In addition, the FDE used Western Union and MoneyGram to funnel criminal proceeds to Mexico.

The evidence during the Oliverez-Jiminez trial detailed how members of the organization sought to drive competitors from their territory by posing as customers in search of fraudulent documents and then attacking the competitors when they arrived to make a sale.  According to court filings, the FDE continued those tactics in 2013.  The First Superseding Indictment charges four FDE members, including Manuel Hidalgo Flores, with targeting a competitor in the Richmond, Virginia area on October 6, 2013.  That planned attack was thwarted, however, by law enforcement intervention. 

Counting this guilty plea, 34 members of this organization charged in the Richmond, Virginia federal cases have been convicted.  Currently, Murcia-Garcia is scheduled to be sentenced on July 17, 2014, before United States District Court Judge James R. Spencer.  Out of the 12 defendants arrested in the current case on October 30, 2013, 8 are scheduled to proceed to a jury trial on June 2, 2014.

The case was investigated by the Richmond and Norfolk offices of ICE’s Homeland Security Investigations (HSI), which falls under the Washington, D.C., office.  ICE HSI received assistance from the Virginia State Police, Chesterfield County Police Department, and Henrico County Police Department.  Assistant United States Attorney Michael Gill and Trial Attorney Maria Gonzalez Calvet, of the Criminal Division's Fraud Section, 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.

RICHMOND, Va. – Tarshema Brice, 34, of Richmond, Va., pled guilty today to manufacturing counterfeit currency.  She faces up to 20 years in federal prison, to be followed by three years of supervised release when she is sentenced on August 15, 2014.

Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; and William Frantzen, Special Agent in Charge of the United States Secret Service, Richmond Field Office, made the announcement after the plea was accepted today by United States District Judge Henry E. Hudson.

Brice was initially charged, along with four others, in a Criminal Complaint filed on September 6, 2013.  She was arrested in September and pled guilty today to a Criminal Information that was filed on March 24, 2014.   

According to court documents, Brice obtained genuine Federal Reserve Notes in either one dollar or five dollar denominations, bleached them, and then printed the image from a genuine fifty or one hundred dollar note onto them.  She began the counterfeiting operation in approximately March 2012 and remained involved in counterfeiting currency until her arrest in September 2013.  In the Statement of Facts filed in support of her plea, Brice admitted she manufactured, or passed, between $10,000.00 and $20,000.00 worth of counterfeit currency. 

Last month, Brice’s co-defendant, Norris Heath, who pled guilty to conspiring to manufacture counterfeit currency, was sentenced to 41 months in federal prison.  In February 2014, co-defendant Abraham Emanuel Brotherson was sentenced to 1.5 years in federal prison for his role in aiding and abetting the conspiracy; and Warren Kelly Isaacs, who was charged with passing counterfeit notes, was sentenced to one year.  La’Keesha Kee, who was also charged with passing counterfeit notes, was found guilty at a trial in February 2014.  She is scheduled to be sentenced in May.      

This case was investigated by the United States Secret Service. Assistant United States Attorney Angela Mastandrea-Miller prosecuted the cases 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.

Seven defendants charged in federal court, over 20,000 pills distributed

ALEXANDRIA, Va. – An oxycodone distribution ring operating in northern Virginia has been dismantled as conspirators plead guilty and are sentenced.

Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Michael L. Chapman, Loudoun County Sheriff; and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement.

According to court documents, members of the conspiracy illegally produced fraudulent prescriptions for 30 mg oxycodone pills using a variety of sources in Fairfax, Loudoun and Prince William County.  The conspirators supplied their own identities, and those of family members and others, to the leaders of the conspiracy to create fraudulent prescriptions.  The leaders used those identities to create fraudulent prescriptions, and they paid individuals to act as runners to fill the false prescriptions at various pharmacies.  Each runner subsequently returned the filled illegal prescriptions, usually containing 60 to 120 oxycodone pills, to the leaders for distribution.

The leaders of the conspiracy typically gave the runners approximately ten to fifteen of the pills as payment, and the conspirators sold the remaining pills for approximately $30 to $45 per pill.  The investigation has identified over 20,000 pills distributed through the conspiracy, and about a quarter of the prescriptions were paid for by privately or publicly funded insurance programs.

The following defendants have been charged in this matter:

• Mostaffa Mohamed Al Nimiry, 24, of Alexandria, Va., pleaded guilty on Jan. 22, 2014 to conspiracy to distribute oxycodone, a Schedule II controlled substance.  Al Nimiry was sentenced today by U.S. District Judge Gerald Bruce Lee to four years in prison, followed by three years of supervised release.

• Jacqueline Alfaro, 22, of Fairfax, Va., pleaded guilty on January 16, 2014 to conspiracy to distribute oxycodone.  Alfaro was sentenced today by U.S. District Judge Anthony J. Trenga to three years in prison, followed by three years of supervised release.

• Jennifer Hagerup, 29, of Great Falls, Va., pleaded guilty today before U.S. District Judge Liam O’Grady to conspiracy to distribute oxycodone, and is awaiting sentencing on July 11, 2014.

• Christopher Bryant, 25, of Sterling, Va., pleaded guilty today before Judge O’Grady to conspiracy to distribute oxycodone, and is awaiting sentencing on July 11, 2014.

• Olivia Lee, 22, of Herndon, Va., pleaded guilty on Jan. 9, 2014 before Judge O’Grady to conspiracy to distribute oxycodone, and is awaiting sentencing on April 25, 2014.

• Hilina Damte, 25, of Alexandria, Va., pleaded guilty on Feb. 6, 2014 before Judge O’Grady to conspiracy to distribute oxycodone, and is awaiting sentencing on May 2, 2014.

• Matias Garcia, 23, of Sterling, Va., has been charged with conspiracy to distribute oxycodone.

            This case was investigated by the FBI’s Washington Field Office, the Loudoun County Sheriff’s Office and the Fairfax County Police Department, with assistance from the Alexandria City Police Department, Prince William County Police Department and Montgomery County Police Department.  Special Assistant U.S. Attorneys Beth Groves and Whitney Russell prosecuted the cases 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 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. – Adam C. White, 40, a former vice president of a Chesapeake, Va., government contracting company pleaded guilty today to conspiracy to pay bribes to public officials in exchange for favorable treatment in connection with U.S. government contract work.  

Acting U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office, Acting Executive Assistant Director Charles T. May Jr. of the Naval Criminal Investigative Service (NCIS) Atlantic Operations and Special Agent in Charge Royce E. Curtin of the FBI’s Norfolk Field Office made the announcement after the plea was accepted by U.S. Magistrate Judge Douglas E. Miller in the Eastern District of Virginia.         

White was charged by criminal information on March 28, 2014, with one count of conspiracy to bribe public officials.  White faces a maximum penalty of five years when he is sentenced on July 11, 2014.

According to a statement of facts filed with the plea agreement, White worked for a government contracting company that was created to support the U.S. Navy’s Military Sealift Command (MSC) on various telecommunication projects.  For several years, White and his business partners paid bribes to MSC public officials in exchange for favorable treatment in awarding MSC-related government contract work. 

White admitted that he contributed a portion of his paycheck to the bribe payments by regularly withdrawing approximately $1,000 in cash from his personal bank account after receiving his bi-weekly paycheck and providing it to his business partners.  Together, White and his business partners paid approximately $3,000 to $4,000 a month in cash bribes to two MSC public officials.  White also admits that he was aware his business partners provided other things of value, including flat-screen televisions, to influence the official actions of a MSC public official.     

As a condition of the plea agreement, White has agreed to forfeit $57,000 as the proceeds of the offense. 

In December 2013, White resigned from his position as vice president of the government contracting company.

Prior to entry of this guilty plea, four other individuals pleaded guilty in connection with the same bribery scheme.  On Feb. 12, 2014, Kenny E. Toy, the former afloat programs manager for the MSC N6 Command, Control, Communication and Computer Systems Directorate, pleaded guilty to bribery and admitted receiving more than $100,000 in cash bribes.  On Feb. 18, 2014, Dwayne A. Hardman, one of White’s business partners, pleaded guilty to bribery and admitted to providing more than $140,000 in cash bribes to Toy and another MSC public official.  On Feb. 19, 2014, Michael P. McPhail pleaded guilty to conspiracy to commit bribery and agreed to forfeit $57,000.  On March 5, 2014, Roderic J. Smith, another of White’s business partners, pleaded guilty to conspiracy and agreed to forfeit $175,000.        

The case was investigated by the FBI, DCIS, and NCIS.  The case is being prosecuted by Trial Attorney Emily Rae Woods of the Criminal Division’s Public Integrity Section and Assistant United States Attorney Stephen W. Haynie of the U.S. Attorney’s Office for the Eastern District of Virginia.

RICHMOND, Va. – Fidel Rodriguez, 54, and Yida Perez, 44, of Henrico County, Virginia, were sentenced today to 15 years' imprisonment in U.S. District Court on four counts of production of child pornography.  The defendants were convicted of the charges in a bench trial in November. 

            Dana J. Boente, Acting 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 defendants were sentenced by Senior United States District Judge Robert E. Payne. 

            According to court documents and evidence presented at court, Rodriguez and Perez, who are husband and wife, sexually abused a minor relative for over six years and produced child pornographic images using the victim as a subject.  The images were produced using a digital camera.  Forensic analysts recovered dozens of the child pornographic images and videos saved on various forms of computer media throughout the defendants' residence, along with additional child pornographic images downloaded from the Internet.  Undercover agents initially detected an individual distributing child pornography from the defendants' residence in 2013 and ultimately arrested Rodriguez and Perez on production of child pornography charges after a grand jury indictment in September. 

            Following their term of imprisonment, Rodriguez and Perez, who are Cuban citizens and were granted residency in the United States over six years ago, will be required to register as sex offenders in any U.S. jurisdiction in which they live, work, or attend school. 

            This case was investigated by the Federal Bureau of Investigation, the Henrico County Police Department and the Richmond Police Department as part of the FBI's Innocent Images Task Force.  Special Assistant United States Attorney Gene Fishel of the Virginia Attorney General’s Office 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.

ALEXANDRIA, Va. – Kil Seok (“Michael”) Seo, 49, formerly of Fairfax, Va., was sentenced today to 38 months in prison for engaging in bank fraud and aggravated identity theft as part of a mortgage fraud scheme.  Seo also was ordered to pay restitution of $894,600 to several banks that were the victims of Seo’s criminal conduct.

Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement following today’s sentencing by U.S. District Judge James C. Cacheris. 

Seo was indicted on Dec. 10, 2009, by a federal grand jury on charges related to a scheme to defraud mortgage lenders, and he entered a guilty plea in U.S. District Court on Jan. 14, 2014.

According to court records, Seo, an Annandale, Va., mortgage broker, schemed with others, including Peter Jin, to defraud lenders by transferring title to residential properties into the names of victims without their knowledge or consent and then opening home equity lines of credit in victims’ names, again without their knowledge or consent.  Seo and Jin then opened bank accounts in the victims’ names for the purpose of receiving the fraudulently obtained loan proceeds.  As part of the scheme, Seo obtained from the Virginia Department of Motor Vehicles an identification card in the name of a victim but with Seo’s photo.  He used that fraudulent ID to take out a home equity loan in the victim’s name.  In total, the scheme resulted in losses to the lenders of nearly $900,000.

In 2009, co-defendant Jin pleaded guilty to mail fraud and aggravated identity theft charges in connection with his role in the offense and was sentenced to 48 months in prison.  Seo has resided in South Korea since 2009, and he was extradited to the United States in November 2013 to face the criminal charges contained in the December 2009 indictment. 

This case was investigated by the Federal Bureau of Investigation.  Assistant U.S. Attorneys Timothy D. Belevetz and Mark D. Lytle 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.

NORFOLK, Va. – Jeffrey T. Byrne, 43, pleaded guilty today to charges of making false claims against the United States Coast Guard (USCG).          

Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia and Marty J. Martinez, Special Agent in Charge, Coast Guard Investigative Service (CGIS), Chesapeake Region, made the announcement after the plea was accepted by United States Magistrate Judge Lawrence R. Leonard.      

Byrne was charged by criminal information on March 25, 2014 with presenting false claims to the USCG.  Byrne faces a maximum penalty of five years in prison when he is sentenced on July 2, 2014 by Chief United States District Judge Rebecca Beach Smith.  

According to the statement of facts filed with the plea agreement, in September 2011, Byrne, a USCG reservist assigned to a duty station in Portsmouth, Virginia, received activation orders.  Byrne, who at the time resided in Hampton Roads, claimed that his permanent address was Frisco, North Carolina.  By claiming Frisco, Byrne was allowed to claim higher lodging and per diem costs based on living more than fifty miles from his assigned duty location.  He also began renting a home from his then girlfriend, whom he later married, even though reservists are prohibited from renting their temporary lodging from friends or family.  In July 2012, Byrne married his girlfriend and continued to file lodging and receipts using his spouse’s maiden name, even after she legally changed her last name.  He also continued to enter a false name and date of birth for his spouse on USCG dependent documents in order to prevent the USCG from detecting the fraud.  When CGIS investigators interviewed Byrne on January 24, 2104 regarding his expense claims, he admitted to the fraud.  Byrne has since paid back the estimated loss of $112,346.78 to the U.S. Coast Guard Finance Center, Chesapeake, Virginia.   

This case was investigated by Special Agents of the Coast Guard Investigative Service.  Assistant United States Attorney Stephen W. Haynie and Special Assistant U.S. Attorney Austin D. Shutt, United States Coast Guard, 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.

RICHMOND, Va. – Felipe Alvarado Gonzalez, age 46, a Mexican National who resided in Pawtucket, Rhode Island pleaded guilty today to Conspiracy to Engage in Racketeering and Conspiracy to Launder Money.  Alvarado Gonzalez faces a maximum of 40 years’ imprisonment, a fine of $750,000, and three years of supervised release.  Further, the defendant is illegally within the United States and faces deportation following the service of his prison sentences.

Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; and Katrina W. Berger, Acting Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), made the announcement after the guilty plea was accepted by Magistrate Judge M. Hannah Lauck. 

According to court papers, this defendant is connected to a Fraudulent Document Enterprise (FDE) previously prosecuted in the Eastern District of Virginia in United States v. Israel Cruz Millan, Case No. 3:10CR308.  The FDE originally operated in the United States beginning prior to 2008 and continuing through November 18, 2010, and had cells in Richmond, Norfolk, Virginia Beach, and Manassas, Virginia; Fayetteville and Little Rock, Arkansas; New Haven, Connecticut; Mishawaka, Indiana; Lexington and Louisville, Kentucky; Chelsea, Massachusetts; St. Louis, Missouri; Chapel Hill, Greensboro, Raleigh, and Wilmington, North Carolina; Cincinnati, Ohio; Providence, Rhode Island; and, Nashville, Tennessee.   The criminal enterprise was dismantled within the United States on November 18, 2010.  In the prior case and connected prosecutions, a total of 30 defendants were convicted.  On February 16, 2012, United States District Judge James R. Spencer sentenced the overall leader, Israel Cruz Millan, to 300 months’ imprisonment.   On March 2, 2012, United States District Judge Henry E. Hudson sentenced Oliverez-Jiminez to two consecutive life terms in prison, after a jury convicted him for racketeering, murder, kidnapping, conspiracy to commit money laundering, and conspiracy to produce and transfer false identification documents. 

According to court filings, the FDE restarted its operations while the Israel Cruz Millan, et al. case was still pending.  Beginning at some point prior to February 2012, Manuel Hidalgo Flores, also known as “Chino,” “Chimuelo” and “Julio,” began managing the organization’s operations in the United States, supervising operations in Richmond, Virginia; Springdale, Arkansas; Boston, Massachusetts; Raleigh, North Carolina; Cincinnati, Ohio; and Pawtucket, Rhode Island.  As in the previous case, the FDE produced high-quality false identification cards for distribution to illegal aliens.  In most cities where the organization operated, Hidalgo Flores placed a cell manager to supervise a number of “runners,” the lower level members of the organization who distributed business cards advertising the organization’s services and helped facilitate transactions with customers.  In his sworn Statement of Facts, Felipe Alvarado Gonzalez, also known as “Wicho,” admitted that, while working under Hidalgo Flores, he supervised runners operating in the Pawtucket, Rhode Island cell. 

The cost of fraudulent documents varied depending on the location, with counterfeit Resident Alien and Social Security cards typically selling for approximately $150.  Each cell maintained detailed sales records and divided the proceeds between the runner, the cell manager, and the upper level managers in Mexico.  In addition, the FDE used Western Union and MoneyGram to funnel criminal proceeds to Mexico.

The evidence during the Oliverez-Jiminez trial detailed how members of the organization sought to drive competitors from their territory by posing as customers in search of fraudulent documents and then attacking the competitors when they arrived to make a sale.  According to court filings, the FDE continued those tactics in 2013.  The First Superseding Indictment charges four FDE members, including Manuel Hidalgo Flores, with targeting a competitor in the Richmond, Virginia area on October 6, 2013.  That planned attack was thwarted, however, by law enforcement intervention. 

Counting this guilty plea, 33 members of this organization charged in the Richmond, Virginia federal cases have been convicted.  Currently, Alvarado Gonzalez is scheduled to be sentenced on July 7, 2014, before United States District Court Judge James R. Spencer.  Out of the 12 defendants arrested in the current case on October 30, 2013, 9 are scheduled to proceed to a jury trial on June 2, 2014.

The case was investigated by the Richmond and Norfolk offices of ICE’s Homeland Security Investigations (HSI), which falls under the Washington, D.C. office.  ICE HSI received assistance from the Virginia State Police, Chesterfield County Police Department, and Henrico County Police Department.  Assistant United States Attorney Michael Gill and Trial Attorney Maria Gonzalez Calvet, of the Criminal Division's Fraud Section, 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.

NEWPORT NEWS, Va. – Christopher Devon Barrett, 28, of Hampton, Va., was sentenced today to twenty-five years in prison, and given five years of supervised release, following his convictions for participating in a continuing criminal enterprise and possession of a firearm in furtherance of a drug trafficking crime.

Dana J. Boente, United States Attorney for the Eastern District of Virginia, Leslie Caldwell, Assistant Attorney General for the Criminal Division of the Department of Justice, Karl C. Colder, Special Agent in Charge for Drug Enforcement Administration’s (DEA) Washington Field Division; Richard W. Myers, Chief of Newport News Police, and Terry L. Sult Hampton Police Chief, made the announcement after sentencing by United States District Judge Raymond A. Jackson.

According to court documents Barrett was a leader and organizer of a drug trafficking organization that obtained cocaine and heroin from local and out of state suppliers for distribution to mid- level distributors on the Virginia peninsula and elsewhere in the Eastern District of Virginia. The drug trafficking organization supplied 150 kilograms or more of cocaine during the conspiracy. Barrett arranging for suppliers and ran the day-to-day affairs of the conspiracy from the Colonial Landing Apartment complex in Hampton, Va., and other locations.  He was the eighteenth defendant convicted and sentenced in connection with this investigation.

The investigative team included the DEA Hampton Post of Duty, Newport News Police Department, the Newport News Sheriff’s Department, the Virginia State Police, and the Hampton Police Division.  Assistant United States Attorney Howard Zlotnick and Trial Attorney Rebecca A. Staton of the Organized Crime and Gang Section in the Justice Department’s Criminal Division 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. – Enrique Omar Hinton, a.k.a. “Rico,” 26, of Newport News, pleaded guilty today to racketeering conspiracy, as well as possessing and discharging a firearm in furtherance of a crime of violence. 

Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; David A. O’Neil, Acting Assistant Attorney General for the Justice Department’s Criminal Division; and Royce E. Curtin, Special Agent in Charge of the Federal Bureau of Investigation’s Norfolk Field Office, made the announcement after the plea was accepted by United States Magistrate Judge Tommy E. Miller. 

Hinton was charged in a superseding indictment returned on December 9, 2013, with racketeering conspiracy, conspiracy to commit murder in aid of racketeering, attempted murder in aid of racketeering, possessing and discharging a firearm in furtherance of a crime of violence, and conspiracy to distribute and possess with intent to distribute marijuana.  Hinton faces a maximum penalty of 20 years in prison on the racketeering conspiracy charge and a mandatory consecutive sentence of ten years to life in prison on the firearm charge when he is sentenced on June 26, 2014, in Norfolk.

In a statement of facts filed with his plea agreement, Hinton admitted that he was a member of a violent street gang called the Black P-Stones, also referred to as the P-Stone Bloods and Cobra Stones, which operated as a criminal enterprise located primarily in the Beechmont, Courthouse Green, and Woodview neighborhoods in the Denbigh area of Newport News.  The Black P-Stones engaged in various criminal activities including murders, robberies, illegal drug trafficking, and obstruction of justice.  Hinton joined the gang in approximately 2005 and held the rank of “Foot Soldier.”  As a Foot Soldier, Hinton sold marijuana for the gang, possessed firearms, attended gang meetings, and planned and participated in the gang’s criminal activities.  On December 10, 2008, Hinton and co-conspirators participated in a shooting in Williamsburg to retaliate against a rival gang member who exhibited disrespect toward a co-conspirator’s girlfriend.  During the shooting, approximately seven to eight bullets were fired at the rival gang member’s home, with bullets entering the home’s living room and front door while two people were inside.  Hinton further admitted that on July 13, 2009, he testified falsely before a federal grand jury for the purpose of obstructing the grand jury’s investigation of the Black P-Stones and the December 10, 2008, shooting in which he and co-conspirators participated.

The investigation of this case was led by the FBI’s Safe Streets Peninsula Task Force, with the assistance of the Newport News Police Department and the James City County Police Department.  Assistant United States Attorney Eric M. Hurt and Trial Attorney Louis A. Crisostomo of the Organized Crime and Gang Section in the Justice Department’s Criminal Division 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.

RICHMOND, Va. –Virginia Parks-Bert, 41, of Parkville, Md., was sentenced today to 42 months in prison, followed by 3 years of supervised release, and required to pay $135,835.09 in restitution to the Internal Revenue Service, for participating in a scheme to defraud the United States by filing fraudulent tax returns. 

Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, Internal Revenue Service, Criminal Investigation; and Kathryn Keneally, Assistant Attorney General of the Justice Department's Tax Division, made the announcement after sentencing by United States District Judge John A. Gibney.

             Parks-Bert pled guilty on October 23, 2013, to conspiracy to defraud the government with respect to claims and aggravated identity theft.  According to court documents, from February 2010 to May 2011, Parks-Bert conspired to obtain false tax return refunds by submitting false claims for herself and other to the IRS.  Parks-Bert included false W-2 employer, wages, and tax withholding amount information on these returns.  She and her co-conspirators then directed the false refunds to be deposited into bank accounts that they controlled.  Generally, Parks-Bert purposefully kept the falsely claimed refund amounts below a certain threshold to avoid detection by the IRS.  In total, Parks-Bert filed at least 57 false federal tax returns claiming $260,270 in refunds that the named taxpayers were not entitled to claim.  Moreover, on March 31, 2010, Parks-Bert filed a tax return using the name and Social Security number of an individual whom she knew was deceased.  She directed that the falsely claimed refund of $5,404 be deposited into a bank account that she controlled.

            This case was investigated by the Internal Revenue Service and Chesterfield County Police Department.  Assistant United States Attorney Erik S. Siebert and Department of Justice, Tax Division Trial Attorney and Special Assistant United States Attorney Rebecca Perlmutter 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.

RICHMOND, Va. –Stephen Maurice Burks, 65, of Richmond, Va., was sentenced today to 115 months in prison, followed by three years of supervised release, for mail fraud.  He also was ordered to pay $1,338,971.52 in restitution to his victims as well as forfeiture.  

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

Burks pled guilty on November 20, 2013.   According to court documents, Burks was the Chief Executive Officer of Chelsea Financial Group, LLC (CFG), which operated from locations in Maryland and Richmond, Virginia.  Burks admitted that from at least as early as January 2008 through January 2013, he offered and sold, both individually and through CFG, investments in several different investment schemes both individually and through CFG.  These schemes included, but were not limited to:  Forex (foreign currency exchange) trading; stock market investments; oil investments; payday lending franchises; and group homes.  Burks admitted that he made material misrepresentations and omissions to investors about his background, including false claims that he was an investment professional, registered investment advisor, and commodities trading advisory.  Burks also failed to disclose to investors that he was a convicted felon.  Throughout all of the various schemes, Burks obtained at least $1.2 million in investor funds and failed to disclose that he retained at least 25% of funds for personal and/or non-investment-related use.

This case was investigated by the United States Postal Inspection Service, Federal Bureau of Investigation, and Internal Revenue Service – Criminal Investigative Division, with significant assistance from the Commodity Futures Trading Commission, the U.S. Department of State, Diplomatic Security Service, and the Virginia State Corporation Commission.  Assistant United States Attorney Jessica D. Aber 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.

ALEXANDRIA, Va. – Francisco Samayoa Hernandez (“Samayoa”), 33, of Silver Spring, Md., pleaded guilty today to receiving bribes in connection with his work as a tax assessor supervisor at the Arlington County, Va., Department of Motor Vehicles Select office. 

Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Leonie M. Brinkema. 

Samayoa faces a maximum penalty of ten years in prison when he is sentenced on June 9, 2014.

In a statement of facts filed with his plea agreement, Samayoa admitted to receiving approximately $11,480 in bribes from a vehicle exporter in exchange for providing vehicle titles and falsifying Department of Motor Vehicle paperwork that allowed the exporter to avoid paying state motor vehicle sales and use tax in connection with the registration and titling of various luxury automobiles.  In exchange for the bribes, Samayoa enabled the exporter to avoid paying approximately $24,923 due to the Commonwealth of Virginia for the registration and titling of a Lamborghini and multiple Ferraris, Porsches and Mercedes.

Samayoa was an Arlington County employee, and the Arlington County Commissioner of Revenue contracts with the DMV to provide vehicle-related services at its local office.
Samayoa also admitted to serving as a straw buyer for the exporter and purchasing three BMWs in his name.  In connection with these transactions, Samayoa falsely certified to a dealership that he was not purchasing the vehicle for export, and the dealership relied on that certification in making the sale.

This case was investigated jointly by the FBI’s Washington Field Office and the Virginia DMV Law Enforcement Division Office of Enforcement and Compliance.  Assistant U.S. Attorney Paul J. Nathanson is prosecuting the case.

Any person who believes they may have information regarding public corruption in the Northern Virginia area is encouraged to call the FBI’s Northern Virginia Public Corruption Hotline at 703-686-6225 or send an email to NOVAPC@ic.fbi.gov.

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. – Thomas J. Cicatello, 32, of Woodbridge, Va., pleaded guilty today to charges of submitting false claims to the United States government totaling more than $40,000.

Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Robert Craig, Special Agent in Charge for the Defense Criminal Investigative Service’s Mid-Atlantic Field Office (DCIS), made the announcement after the plea was accepted by United States District Judge Gerald Bruce Lee.

Cicatello faces a maximum penalty of five years in prison when he is sentenced on May 15, 2014.

In a statement of facts filed with the plea agreement, Cicatello admitted that from February 2011 through October 2011, while he was employed as a contractor providing image and data analysis services to the National Geospatial-Intelligence Agency (NGA), he caused his employer to submit to the NGA time reports claiming he had worked for significant amounts of time when in fact he was not at work.  As part of his responsibilities, Cicatello reviewed geospatial intelligence to aid in the identification of improvised explosive devices in active war zones, including Afghanistan and Iraq.  The information he was responsible for preparing was used in reports provided to U.S. military personnel in those areas, who relied on the accuracy of the information they received to make strategic decisions.  In order to conceal his absences, Cicatello prepared false intelligence reports indicating “NSTR,” which meant nothing significant to report, without actually having reviewed the relevant material.

This case was investigated jointly by DCIS and NGA Office of Inspector General.   Assistant United States Attorney Timothy D. Belevetz 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. – Ismael Cuario Estrada, 66, was convicted today of embezzlement, after a four-day jury trial.

Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Charles T. May Jr., the Naval Criminal Investigative Service (NCIS) Acting Executive Assistant Director for Atlantic Operations, made the announcement after the verdict was accepted by Senior United States District Judge Henry Coke Morgan, Jr.  

Estrada faces a maximum penalty of ten years and a fine of $250,000.00 when he is sentenced on June 25, 2014.  

Estrada was indicted on November 6, 2013.  According to court records and the evidence presented at trial, Estrada is a retired Navy enlisted sailor who joined the Military Sealift Command (MSC) as a ship’s purser.  In late 2006, he became a crewman on the USNS Arctic and remained there until March 30, 2013.  In the early part of 2013, Estrada was ordered to become the purser on another USNS ship, the Laramie, whose purser was two months past his time limit on board.  Estrada attempted to remain on the Arctic, but was ordered to leave for the Laramie.  Contrary to the Captain’s orders, Estrada did not do the normal cash verification and placement of the ship’s money in the bank.  Instead, he only did the cash verification and left the money in the ship’s vault.  A cash verification on April 30, 2013 found that approximately $350,118 was missing from the $691,000 that should have been in the safe in the purser’s office, based on a cash verification that had been performed a month earlier.  Estrada was then ordered off the Laramie and returned to Norfolk where he was eventually arrested and indicted for embezzlement.           

This case was investigated by Naval Criminal Investigative Service.  Assistant United States Attorney Steve Haynie and Special Assistant United States Attorney Christopher George 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.

ALEXANDRIA, Va. – Samuel Goines, 61, of Washington, D.C., was sentenced today to 60 months in prison, followed by 3 years of supervised release, for conspiracy to commit bank fraud and obstruction of justice.  Goines also was ordered to pay restitution and forfeiture in the amount of $539,187.36.

Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Valerie Parlave, 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.

Goines pleaded guilty on Dec. 13, 2013.  According to court documents, Goines and his co-conspirators opened business accounts at banks in the Washington metro area, including in the Eastern District of Virginia, and funded them through stolen and counterfeit checks and unauthorized wire transfers.  The conspirators then withdrew money from these fraudulent accounts.  On a single day in 2013, Goines went to eight SunTrust bank branches in northern Virginia and cashed eight checks issued to other people by presenting eight different fake IDs. 

Goines continued to participate in the conspiracy even after he was put on electronic monitoring due to a probation violation in an unrelated case.  In addition, after Goines was arrested, he called a co-conspirator from jail to warn him about the investigation and advise him of steps to take to avoid detection.

This case was investigated by the FBI’s Washington Field Office, the U.S. Secret Service, and the Alexandria Police Department.  Assistant U.S. Attorney Kosta S. Stojilkovic 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 PACER and on the website of the U.S. District Court for the Eastern District of Virginia.

Navy official allegedly set up $1.6 million contract for silencers from unlicensed company

ALEXANDRIA, Va. – A federal grand jury returned a superseding indictment charging Lee Hall, 52, of northern Virginia, and Mark Landersman, 53, of California with conspiracy to illegally manufacture firearms, transport unregistered firearms in interstate commerce and commit mail fraud.  Lee Hall also is charged with theft of government money.

Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Rocco Pierri, Special Agent in Charge of the Naval Criminal Investigative Service’s (NCIS) Washington Field Office; and Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement.

Hallfaces a maximum penalty of 15 years in prison if convicted of both charges.  Landersman faces a maximum penalty of five years if convicted.

According to the indictment, as Intelligence Director of the Office of Plans, Policy, Oversight and Integration for the Deputy Undersecretary of the Navy, Lee Hall initiated a sole source contract between a Navy prime contractor and Mark Landersman’s company, Advanced Machining and Engineering (AME), for the manufacture of 349 silencers at a cost of approximately $1.6 million.

According to court records, neither Landersman nor AME was licensed to manufacture or sell firearms or silencers.  Moreover, although AME was to receive about $1.6 million for the silencers, Landersman subcontracted the actual production of the silencers for a cost of approximately $10,000.  Landersman had the silencers manufactured without serial numbers and shipped them to Maryland in February 2013.

The sole source contract called for Landersman to receive a deposit of approximately $800,000 before starting production, with the balance to be paid shortly after the silencers were shipped from California to Maryland.  In April 2013, Landersman received the remaining balance of approximately $800,000 under the subcontract.  An inspection report submitted before payment of the remaining balance stated that the silencers had been inspected and that they conformed to the contract.  No inspection of the silencers, however, was actually done prior to paying the $800,000 balance.

This investigation is being conducted jointly by NCIS and ATF.  Assistant U.S. Attorneys Morris Parker, Patricia Haynes and Karen Taylor 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 PACER and on the website of the U.S. District Court for the Eastern District of Virginia.

RICHMOND, Va. – Norris Eugene Heath, 39, of North Chesterfield, Va., was sentenced today to 41 months in federal prison, to be followed by three years of supervised release, on charges of conspiring to manufacture counterfeit Federal Reserve Notes; and for passing counterfeit Federal Reserve Notes.  Restitution to one of the victims was also ordered.

Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; and William Frantzen, Special Agent in Charge of the United States Secret Service’s Richmond Field Office, made the announcement after sentencing today by United States District Judge Henry E. Hudson.

Heath was arrested on September 18, 2013, and indicted on October 16, 2013.  He pled guilty on December 2, 2013 to both charges in the indictment. 

According to court documents, Heath obtained genuine Federal Reserve Notes in either one dollar or five dollar denominations, bleached them, and then printed the image of either a fifty dollar or one hundred dollar note onto them.  He joined the conspiracy in approximately August 2012, and remained a part of it until June 7, 2013.  He was held responsible for having manufactured or passed $3,450.00 worth of counterfeit currency. 

In February 2013, co-defendant Abraham Emanuel Brotherson was sentenced to 1.5 years in federal prison for his role in aiding and abetting the conspiracy; Warren Kelly Isaacs, who was charged with passing counterfeit notes, will be sentenced later this month; and La’Keesha Kee, who was charged with passing counterfeit notes, was found guilty after proceeding to trial last month.  She is scheduled to be sentenced in May.  There are also outstanding charges pending against Tarshema Brice.

This case was investigated by the United States Secret Service. Assistant United States Attorney Angela Mastandrea-Miller prosecuted the cases 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.

NEWPORT NEWS, Va. – Kevin L. Ashby, 25, of Newport News, Va., pleaded guilty yesterday to participating in a racketeering conspiracy and violence in aid of racketeering including murder.

Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, FBI Special Agent in Charge Royce E. Curtin, and, Richard Meyers, Chief of Newport News Police, made the announcement after the plea was accepted by United States District Judge Raymond Jackson.

Ashby was indicted by a federal grand jury on July 17, 2013, for his participation in a racketeering conspiracy, two counts of murder in aid of racketeering, as well as numerous firearm and robbery charges.  Ashby faces a mandatory life sentence when he is sentenced on June 26, 2014.

According to court documents,  Ashby was part of a criminal organization known locally as “Thug Relations,” alternatively known as “the Duct,” “Warwick Lawnz,” “TR,” and “from the Duct to the Lawnz,” a neighborhood gang operating in the Aqueduct Apartments, St. Michael’s Apartments, Mariner’s Landing Apartments, Heritage Trace Apartments, as well as Warwick Lawns, Warwick Town Home,  Sharon Drive, and the Savage Drive areas of Newport News, Virginia. Ashby admitted his participation in the racketeering conspiracy as charged in the indictment, that alleged a criminal enterprise engaged in murder, attempted murder, witness intimidation, robbery, and narcotics distribution.  The indictment specifically charged the murders of Andre Horton and Andre Julius Johnson on May 17, 2009, the murder and robbery of Lafayette Bailey on December 15, 2009, and the murder and robbery of Lloyd Robinson on January 8, 2010. Ashby admitted his involvement in this criminal activity in a statement of facts filed in open court at the time of his guilty pleas.

This investigation was led by FBI and the Safe Streets Task Force, with assistance from the Newport News Police and the Virginia State Police.  Assistant United States Attorneys Howard J. Zlotnick and Lisa R. McKeel, and Special Assistant United States Attorney Jonathan A. Ophardt are prosecuting the case on behalf of the United States.

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. – Va Nessa Taylor, 47, of Temple Hills, Md., was charged today by criminal complaint for allegedly engaging in misdemeanor assaults while working as a caregiver at the Cody Child Development Center (CDC) on Joint Base Myer-Henderson Hall (JBM-HH) in Arlington, Va.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Col. Fern O. Sumpter, Joint Base Commander at JBM-HH, made the announcement.
Taylor has been charged with committing the offense of simple assault against a child under 16 years of age at a facility located within the special maritime and territorial jurisdiction of the United States.  The offense is a Class A misdemeanor under federal law, and if convicted, Taylor faces a maximum penalty of one year in prison and a $100,000 fine.

According to court records, Taylor worked at the CDC as a caregiver.  On Jan. 29, 2014, a CDC employee reported to a supervisor that Taylor had been observed withholding food from a two-year-old child during the facility’s lunch period.  After this conduct was reported, officials investigated the allegations and conducted a thorough review of surveillance footage within the CDC.  That investigation ultimately revealed four instances in which Taylor allegedly assaulted four children within her care by hitting and pushing the children.  The children ranged in ages from 18 months to two years, and the observed conduct occurred from Nov. 26, 2013 to Jan. 29, 2014.

Based on the investigation, Taylor’s conduct did not appear to result in sustained physical injury to the children.  Taylor was removed from her duties of supervising children on Jan. 30, 2014, immediately after her conduct was reported to the relevant authorities at JBM-HH.

This case was investigated by the U.S. Army’s Criminal Investigation Command (CID) at JBM-HH.  Special Assistant U.S. Attorney Amanda O’Neil and Assistant U.S. Attorney Rosanne C. Haney are prosecuting the case on behalf of the United States.

The Cody Child Development Center, which cares for infants and school-age children, is the largest in the Department of Defense and serves military and civilian families who work at the Pentagon, Forts Myer-Henderson and McNair and throughout the national capital region.

Criminal complaints 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 PACER and on the website of the U.S. District Court for the Eastern District of Virginia.

Defendant Helped U.S. Customers Conceal Assets in Secret Swiss Bank Accounts and Tax Havens

WASHINGTON – Andreas Bachmann, 56, of Switzerland, pleaded guilty today to conspiring to defraud the Internal Revenue Service (IRS) in connection with his work as a banking and investment adviser for U.S. customers.

Deputy Attorney General James Cole, Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally, Acting U.S. Attorney Dana J. Boente for the Eastern District of Virginia and IRS-Criminal Investigation Chief Richard Weber made the announcement after the plea was accepted by U.S. District Judge Gerald Bruce Lee.

“Today’s plea is just the latest step in our wide-ranging investigations into Swiss banking activities and demonstrates the Department of Justice's commitment to global enforcement against those that facilitate offshore tax evasion,” said Deputy Attorney General Cole.  “We fully expect additional developments over the course of the coming months.”

Bachmann was charged in a one-count superseding indictment on July 21, 2011, and faces a maximum penalty of five years in prison when he is sentenced on Aug. 8, 2014.

In a statement of facts filed with the plea agreement, Bachmann admitted that between 1994 and 2006, while working as a relationship manager in Switzerland for a subsidiary of an international bank, he engaged in a wide-ranging conspiracy to aid and assist U.S. customers in evading their income taxes by concealing assets and income in secret Swiss bank accounts.

As part of that conspiracy, Bachmann traveled to the United States twice each year to provide banking services and investment advice to his U.S. customers.  As a matter of practice, prior to traveling to the United States, Bachmann notified his executive management, including the head of the subsidiary’s private bank in Zurich and the chief executive officer of the subsidiary, of the planned trip and its objectives.

Although Bachmann had been informed of limitations under U.S. law on his ability to provide investment advice to U.S. account holders regarding U.S. securities, the highest ranking executive at the subsidiary was aware that Bachmann was violating U.S. law.  According to the statement of facts, Bachmann was effectively told by the chief executive officer for the subsidiary, “Mr. Bachmann, you know what we expect of you, don’t get caught.”

According to the statement of facts, Bachmann also engaged in cash transactions while traveling in the United States.  In the course of arranging meetings with U.S. customers, some clients would request that Bachmann either provide them with cash as withdrawals from their undeclared accounts or take cash from them as a deposit to their undeclared accounts.  As part of that process, Bachmann agreed to receive cash from U.S. customers and used that cash to pay withdrawals to other U.S. clients.  In one instance, Bachmann received $50,000 in cash from one U.S. customer in New York City and intended to deliver the money to another U.S. client in Southern Florida.  Airport officials in New York discovered the cash but let Bachmann keep the money after questioning him.  The client in Florida refused to take the money after the client learned about the questioning by New York airport officials, and Bachmann returned to Switzerland with the $50,000 in cash in his checked baggage.  Bachmann advised the executive management of the subsidiary about the incident with the cash.

Bachmann also understood that a number of his U.S. customers concealed their ownership and control of foreign financial accounts by holding those accounts in the names of nominee tax haven entities, or structures, which were frequently created in the form of foreign partnerships, trusts, corporations or foundations.

Bachmann dealt with Josef Dorig, a co-defendant, regarding the formation and/or maintenance of structures for U.S. customers, among others.  In approximately 1997, the international bank instructed Dӧrig to form his own company specializing in the formation and management of nominee tax haven entities because it was “too risky” to have Dörig perform that work from inside the international bank.  The international bank then directed the subsidiary and others to use Dorig and his Swiss trust company, Dorig Partner AG, as the preferred choice for the formation and management of structures.

This case is being investigated by IRS-Criminal Investigation.  Assistant U.S. Attorney Mark D. Lytle and Tax Division Trial Attorneys Mark F. Daly, Nanette L. Davis and Jason Poole 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 here and here.

NEWPORT NEWS, Va. – Gregory L. Tropea, 52, of Newport News, Va., was sentenced yesterday to 336 months and a lifetime of supervised release for his convictions on three counts of receipt of child pornography and one count of making a false statement to an agent of the United States.

Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, FBI Special Agent in Charge Royce E. Curtin, and Richard Myers, Chief of Newport New Police, made the announcement after sentencing by United States District Judge Robert Doumar.

Tropea pleaded guilty on November 7, 2013. According to court documents, on May 8, 2013, police responded to the Host Inn where Tropea was living, after a friend of his had not heard from him in several days.  Upon arriving at the hotel, the manager informed them that a surveillance tape showed Tropea leaving the hotel on May 5, 2013, on his bicycle but not returning. Police entered the room to investigate the missing persons report and found numerous phone numbers inside the room. Officers called several people to try and locate Tropea, including his probation officer whose business card was located in the hotel room. While in the room officers found a laptop computer as well as a coffee can full of thumb drives.  After speaking to the probation officer police learned that Tropea was on federal supervised release, for fraud and possession of child pornography, and barred from having a computer. The search was stopped when they discovered he was in violation of his supervision. FBI agents obtained a search warrant and numerous items were seized including the computer and thumb drives.  Tropea was later located at an area jail.  A forensic exam of the computer and thumb drives was conducted and over 40,000 images of child pornography were found.

This case was investigated by FBI and Newport News Police. Assistant United States Attorney Lisa R. McKeel 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.

RICHMOND, Va. – Samuel G. Mamudu, 25, of Henrico, Va., was convicted yesterday by a federal jury on charges for his role in the October 9, 2013, gun-point robbery of Prince Jeweler’s jewelry store in the Chesterfield Towne Center Mall.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field office; and Colonel Thierry Dupuis, Chesterfield County Police Department, made the announcement after the verdict was accepted by United States District Judge Henry E. Hudson.

Mamudu was convicted on one count of interference with commerce by robbery and one count of brandishing a firearm in furtherance of a crime of violence.  Mamudu faces a mandatory minimum sentence of seven years of incarceration and a maximum penalty of life imprisonment when he is sentenced on June 13, 2014.
Mamudu was indicted on December 17, 2013, by a federal grand jury on interference with commerce by robbery and brandishing a firearm in furtherance of a crime of violence.  According to court records and evidence at trial, Mamudu entered into the Prince Jeweler’s jewelry store, located in Chesterfield Towne Center Mall, brandished a firearm, robbed the clerk of several items of jewelry, and fled the scene.  Several days later, Mamudu was identified as the armed robber and arrested by the Chesterfield County Police Department with several of the stolen pieces of jewelry in his possession.  At trial the government’s evidence included fingerprints, surveillance video, and testimony from the victim, who identified the defendant and described the handgun he brandished during the robbery.  Mamudu testified in his own defense at trial, admitting that he stole the jewelry but denied committing an armed robbery.  Assistant United States Attorney Erik Siebert cross-examined Mamudu, highlighting the multiple versions of events he had previously given to law enforcement, including his initial denial that he was even in the store during the robbery.

This case was investigated by the FBI and Chesterfield County Police Department.  Assistant United States Attorneys Erik S. Siebert and Peter S. Duffey 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.

ALEXANDRIA, Va. – John Spangler, 43, of Frederick, Md., pleaded guilty today to mail fraud for a scheme to defraud two government contractors of more than $635,000.

Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by United States District Judge Gerald Bruce Lee.

Spangler pleaded guilty to one count of mail fraud.  Spanglerfaces a maximum penalty of 20 years in prison and fines totaling the greater of $250,000 or twice the gross gain or loss when he is sentenced on June 6, 2014.

In a statement of facts filed with the plea agreement, Spangler admitted that from 2007 to 2012, he defrauded two government contractors out of approximately $635,000 to $735,000 by using his position as an information technology (“IT”) manager for those contractors to funnel funds intended for IT supplies to a shell company run by Spangler.  Over the course of the scheme, Spangler created fraudulent documentation for 19 purported purchases of IT supplies from the shell company that he owned.  In reality, however, Spangler did not provide the supplies at the agreed-upon prices and instead used the funds for personal expenses.  Spangler has agreed to forfeiture and restitution of between $635,843.06 and $735,843.06.

This case is being investigated by the FBI’s Washington Field Office.  Assistant United States Attorney Ryan Faulconer and Special Assistant United States Attorneys Jennifer Ballantyne and Emily Mintz 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.

Defendants stole over 600 identities and caused more than $1 million in victim losses

ALEXANDRIA, Va. – Jenaro Blalock, 31, of Clinton, Md., was sentenced today to 12 years in prison, followed by three years of supervised release, for access device fraud and aggravated identity theft.  Blalock also was ordered to pay full restitution to the victims.

Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Kathy A. Michalko, Special Agent in Charge for the United States Secret Service’s Washington Field Office; and Colonel Edwin C. Roessler, Jr., Fairfax County Chief of Police, made the announcement after sentencing by United States District Judge Claude M. Hilton.

Blalock pleaded guilty on Oct. 29, 2013.

According to court documents, between June 2011 and July 2013, Blalock and co-leader Christopher Bush recruited women with access to identity information through their employers to steal more than 600 identities, primarily belonging to employees of the U.S. Department of State, the U.S. Department of Defense and the U.S. Agency for  International Development.  Blalock provided blank driver’s licenses so that Bush could make fraudulent driver’s licenses bearing the victims’ real names, addresses and dates of birth.  Blalock also made fraudulent credit cards bearing victims’ names.  Members of the identity theft ring, including Blalock, used those fraudulent driver’s licenses and victims’ social security numbers to open instant credit lines at retailers and obtain rental cars, which were frequently sold on the black market with altered vehicle identification numbers.  The identity theft ring caused victim losses of between $1 million and $2.5 million.

On Jan. 17, 2014, co-leader Bush was sentenced to 10 years in prison.

This case was investigated by the United States Secret Service and the Fairfax County Police Department, with assistance from the City of Fairfax Police Department, Prince George’s County Washington Area Vehicle Enforcement, Prince George’s County Financial Crimes Section, the Metropolitan Washington Airport Authority, the Delaware State Police, the Maryland State Police, the D.C. Metropolitan Police Department, the U.S. Postal Inspection Service, the Office of the Inspector General of the U.S. Department of Agriculture, and the Office of the Inspector General of the U.S. Department of State.  Assistant United States Attorney Lindsay Kelly and Special Assistant United States Attorney Peter Roman of the Department of Justice’s Computer Crimes and Intellectual Property Section 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.

Company smuggled and sold over $12 million in non-FDA-approved chemotherapy drugs and injectable cosmetic drugs and devices

ALEXANDRIA, Va. – Talib Khan, 43, of Montreal, Quebec and Barbados, co-founder of Gallant Pharma International Inc., an unlicensed wholesale drug distributor headquartered in Arlington, Va., was sentenced today to 3 years in prison, 2 years of supervised release, and $3.4 million in forfeiture and restitution to victims.

Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Antoinette V. Henry, Special Agent in Charge of the Food and Drug Administration’s (FDA) Office of Criminal Investigations; Gary Barksdale, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; Scot R. Rittenberg, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), Washington; and M. Douglas Scott, Arlington County Chief of Police, made the announcement after sentencing by United States District Judge Claude M. Hilton.

On Oct. 15, 2013, Khan pleaded guilty to conspiracy and sale of misbranded drugs.  According to court documents, between August 2009 and August 2013, Gallant Pharma smuggled into the United States and sold more than $12.4 million in non-FDA-approved chemotherapy drugs and injectable cosmetic drugs and devices, generating profits of $3.4 million.  Many of these drugs were subject to strict temperature controls to protect drug potency.  Gallant Pharma shipped and received such drugs with ice packs, not dry ice used by legitimate distributors, and on at least one occasion, a shipment containing such drugs took more than two weeks to arrive in Virginia from overseas during a July 2012 heat wave.

Many drugs sold by Gallant Pharma also were required to carry a FDA “black box” warning, which indicates that a drug carries a significant risk of serious or life-threatening adverse effects.  The versions sold by Gallant Pharma did not meet this or other FDA labeling requirements.

Also sentenced today was Gallant Pharma sales representative Harvey Whitehead, 68, of Cadillac, Michigan.  Whitehead, was sentenced to 2 years of probation, to include 6 months of home confinement, following his Oct. 3, 2013 guilty pleas to unlicensed wholesale prescription drug distribution and sale of misbranded drugs.  Whitehead also agreed to pay $36,795.85 in restitution to victims.

Nine additional co-defendants, including co-founder Syed “Farhan” Huda, 38, of Arlington, Va., previously pleaded guilty, and eight are awaiting sentencing.  A jury trial is scheduled for March 31, 2014, for alleged co-conspirators Anoushirvan Sarraf, 48, and Eva Montejo Pritchard, 48, both of Rockville, Md.  Sarraf, the owner of Aphrodite Skin Care Clinic in McLean, Va., and Pritchard, the office manager, are alleged to have knowingly received illegal shipments intended for Gallant Pharma, in exchange for a discounted price on non-FDA-approved drugs and devices that they used on Aphrodite patients without the patients’ knowledge or consent.

This case was investigated by FDA’s Office of Criminal Investigations, the Drug Enforcement Agency’s Group 33 Diversion Task Force, HSI Washington and the U.S. Postal Inspection Service, with assistance from the Arlington County Police Department.  Assistant United States Attorneys Lindsay Kelly, Maya Song and Jay Prabhu 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.

Defendant shipped over $250,000 in high-tech items through United Arab Emirates

ALEXANDRIA, Va. – Vahid Hosseini, 62, of Reston, Va., pleaded guilty today to two felony counts arising from his involvement in exporting various unlicensed goods from the United States to Iran.

Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by United States District Judge Liam O’Grady.

Hosseini pleaded guilty to conspiracy to violate the Iranian Transactions and Sanctions Regulations under the International Emergency Economic Powers Act (IEEPA), and a separate count of money laundering.  Hosseini faces a maximum penalty of 15 years in prison and fines totaling $250,000 when he is sentenced on June 6, 2014.

In a statement of facts filed with the plea agreement, from at least as early as January 2008 to July 2013, Hosseini operated a business known as Sabern Instruments from his residence in Reston.  Through this business, Hosseini procured over $250,000 worth of goods from over 60 American manufacturers, which he then repackaged and shipped to entities in Iran.  The list of high-tech goods included tachometers, power supply instruments, high-temperature probes, ammonia test tubes, valves and machinery parts, all of which are used in a variety of commercial applications, including power plants.  Hosseini routed these shipments through the United Arab Emirates (UAE) in an attempt to disguise the fact that the items were destined for Iran.  Such exports are prohibited without a license issued by the Treasury Department’s Office of Foreign Assets Control.

In a related money laundering scheme, Hosseini had over $700,000 wired into his company business account from entities in Iran and the UAE, much of which was derived from his illegal export business.  He then unlawfully withdrew money from his business account for personal expenditures.

This case was investigated by the FBI’s Washington Field Office.  Assistant United States Attorney Neil Hammerstrom 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. – The United States Attorney’s Office announced today a $162,500 settlement under the Americans with Disabilities Act (“ADA”) with Commonwealth Health & Rehab Center (“CHRC”), which is located in Fairfax County, Va. and is part of the Commonwealth Care of Roanoke’s network of skilled nursing facilities, to ensure effective communication with individuals who are deaf or hard of hearing in the provision of medical services.

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

“This settlement exemplifies our unwavering commitment to protect the rights of those who are deaf or hard of hearing and to ensure that they are able to communicate with health care professionals, especially when patients and their companions have critical interactions with medical providers,” said Acting U.S. Attorney Boente.

            The settlement agreement requires that CHRC pay $160,000 to the three aggrieved individuals and a $2,500 penalty to the United States; provide training to the skilled nursing facility’s staff on the requirements of the ADA; and adopt specific policies and procedures to ensure that auxiliary aids and services are provided promptly to patients and companions who are deaf or hard of hearing.

            This matter was handled by Assistant United States Attorney Steven Gordon, who coordinates the Civil Rights Initiative for the United States Attorney’s Office.

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

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

A copy of this press release may be found on the website of the 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. – Wenjing Liu, 32, of Tianjin, China, was convicted today by a federal jury on charges of international parental kidnapping.

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

Liu was indicted on November 6, 2014. According to court records and evidence at trial, on September 4, 2014, Liu accompanied her four-year-old son on a United Airlines direct flight to China. Liu and her husband, the child’s father, were separated but had joint legal custody of the child. Less than 90 minutes before the flight was scheduled to depart Dulles International Airport, Liu sent an email to her estranged husband to advise that she and their son were flying to China that day.  The father, who had court-ordered visitation every weekend, emailed Liu back and expressed his opposition to the child going to China.  The child’s father then traveled to Dulles International Airport in hopes of stopping Liu from taking their son onto the plane. 

Upon arriving at the airport, the father approached officers with the Metropolitan Washington Airports Authority (MWAA), advised them of his estranged wife’s email, and provided a copy of the court order that provided him with weekend visitation.  That court order also prohibited either parent from taking their child out of the United States without first obtaining express written notarized consent from the other parent.  The MWAA officers contacted United Airlines, who advised that Liu and the child were on board Flight 897, and that the plane had already departed Dulles International Airport on its way to Beijing, China.

After consulting with MWAA and the FBI and when Flight 897 was in Canadian airspace, United Airlines ordered Flight 897 to return to Dulles International Airport.  The plane returned approximately 4 hours after it had taken off, and Ms. Liu was arrested for attempted international kidnapping as soon as she got off the plane.

Liu faces a maximum penalty of three years in prison when sentenced on June 5, 2015.  The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

This case was investigated by the FBI’s Child Exploitation Task Force. Assistant U.S. Attorneys Rebeca H. Bellows and Carina A. Cuellar are prosecuting the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-372.

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RICHMOND, Va. – William A. Coles, Jr., 49, of Pamplin, Va., was indicted by a federal grand jury yesterday on seven counts involving the preparation and filing of false tax returns and bank fraud.  The indictment includes one count of conspiracy, five counts of assisting in the preparation and filing of a false tax return, and one count of bank fraud.  Coles faces a maximum penalty of 48 years of incarceration, if convicted.

               Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; and Mark R. Herring, Attorney General of Virginia, made the announcement. 

               The indictment alleges that William Coles and his wife Sybil Coles, who was charged in a related case and pleaded guilty on January 28, 2014, engaged in a false tax return conspiracy.  It is alleged that William Coles recruited individuals from the Piedmont Regional Jail, where he worked as a supervisor, to pay Sybil Coles to prepare and file tax returns that falsely claimed business losses, childcare expenses, job expenses, and charitable donations, among other things, creating a larger refund in an attempt to attract more customers.  In addition, the indictment alleges that William Coles assisted in the preparation of his own false tax returns.  It also alleges that William Coles devised a scheme to defraud a financial institution by submitting falsified W-2 and wage documents to obtain a mortgage loan.  A trial date has not been set by the Court.

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

            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.

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. – Roderic J. Smith, 50, pleaded guilty today to charges of paying bribes to public officials.

Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, made the announcement after the plea was accepted by Senior United States District Judge Henry Coke Morgan, Jr.

Smith was charged via criminal information on March 5, 2014 with conspiracy to bribe public officials.  Smith faces a maximum penalty of five years when he is sentenced on June 23, 2014.

According to a statement of facts filed with the plea agreement, Smith and his business partner, Dwayne A. Hardman, established a government contracting corporation in Chesapeake, Virginia in November 2004, which was to provide support to the Military Sealift Command (MSC) on various telecommunications projects.  Shortly thereafter, in early 2005, Smith and Hardman agreed to pay cash bribes to two MSC officials in exchange for the MSC official steering government contracts to Smith and Hardman’s corporation.  In exchange for the contracts being issued to the corporation, Smith and Hardman agreed to pay cash bribes to the two MSC officials.  From March 2005 until 2007, Smith, Hardman, and others paid the MSC officials a total of approximately $3,000 each month in cash bribe payments.  During this time, Smith and Hardman withdrew approximately $144,000 in cash which was then provided to the two MSC officials, in exchange for the MSC officials’ assistance in securing MSC contracting and subcontracting business for their company.  Hardman left the company in 2009 and Smith managed the company as president until he resigned in late 2013.

On Feb. 12, 2014, one of the MSC officials, Kenny Toy, who was the Afloat Programs Manager for MSC’s N6 Command, Control, Communication, and Computer Systems Directorate, pleaded guilty to accepting bribes in conjunction with this scheme.  On Feb. 18, 2014, Smith’s business partner, Dwayne A. Hardman, pleaded guilty to bribery.  On Feb. 19, 2014, Smith’s business partner, Michael P. McPhail, pleaded guilty to conspiracy.     

This case was investigated by Special Agents of the FBI, the Naval Criminal Investigative Service (NCIS), and the Defense Criminal Investigative Service (DCIS).  Assistant United States Attorney Stephen W. Haynie and Trial Attorney Emily Rae Woods, of the Public Integrity Section, Criminal Division, Department of Justice, 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.