Eastern District of Virginia

NORFOLK, Va. – Thaddeus Vidal Peralta, 43, of Winter Park, Fl., and Aaron Anthony Lumpkin 37, of Saint Cloud, Fl. were sentenced on March 3, 2014, for conspiracy to distribute and possess with intent to distribute methamphetamine, commonly known as “ice,” and possessing with intent to distribute a mixture and substance containing a detectable amount of methamphetamine.  Peralta was sentenced to 262 months in prison, followed by five years of supervised release.  Lumpkin was sentenced to 180 months in prison followed by four years of supervised release. 

Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Acting Special Agent in Charge Scot R. Rittenberg of U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), Washington, made the announcement after sentencing by United States District Judge Mark S. Davis.   

Peralta and Lumpkin were both foundguilty of the above charges by a federal jury on October 11, 2013 after a six-day trial.  According to court documents, Lumpkin supplied Peralta and others with large quantities of methamphetamine for distribution in the Eastern District of Virginia.  Beginning in approximately late 2011, Lumpkin sent numerous packages containing methamphetamine from Florida via FedEx to his mother’s residence in Newport News.  Peralta then traveled from Florida to Virginia to distribute the methamphetamine on Lumpkin’s behalf.  Peralta, formerly of Virginia Beach, has been distributing methamphetamine here since approximately 2005.     

This case was investigated by Homeland Security Investigations, the Virginia Beach Police Department and the Norfolk Police Department.  Assistant United States Attorney Darryl J. Mitchell prosecuted the case on behalf of the United States.

A copy of this press release may be found on the website of the 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. – Phillip D. Bosket, 47, of New York, was sentenced yesterday to 262 months in prison for bank robbery and brandishing a firearm in furtherance of a crime of violence.

Dana J. Boente, Acting 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 made the announcement after sentencing by United States District Judge Robert G. Doumar.    

Bosketpleaded guilty on December 3, 2013.  According to court documents, Bosket attempted to rob a Credit Union and robbed a bank.  The defendant entered a Langley Federal Credit Union on Granby Street in Norfolk with a knit hat covering his whole face.  Bosket saw a security guard come around the corner so he took off running.  As he ran he discarded his firearm and his knit hat.  His DNA was on the hat.  A few weeks later he robbed a Wells Fargo Bank on High Street in Portsmouth.  He entered the bank with a knit hat covering his face.  He brandished a firearm at the teller and made off with over $4000.  The police quickly located the defendant resulting in a high speed chase.  As defendant was fleeing he threw out the bag of money, his gun and his knit hat.  The police followed him on a high speed chase from Portsmouth to Virginia Beach.  The chase ended when the defendant crashed his van into a building. 

This case was investigated by the Federal Bureau of Investigation’s Norfolk Field Office. Assistant United States Attorney William Muhr 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. – John Nathan Fitzgerald, 36, of Indianapolis, Indiana, was sentenced today to 360 months in prison, followed by 120 months of supervised release, for his role in a cocaine distribution conspiracy.
Dana J. Boente, Acting 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 Royce E. Curtin, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by United States District Judge Arenda L. Wright Allen.

Fitzgerald pleaded guilty on August 8, 2013.  According to court documents, since approximately 2006, Fitzgerald was a member of a large-scale cocaine distribution conspiracy with a far-reaching distribution network that spanned from Virginia to New York, Pennsylvania, Indiana, Arizona, and other locations.  The group concealed the cocaine for distribution and the proceeds from the sale of the drugs by secreting both inside the lining of coolers and inert, hollowed-out fire extinguishers to avoid detection during transportation.  Fitzgerald ran the Indianapolis, Indiana hub of the organization, where he maintained a stash house for the group to store, re-package, and deliver the cocaine, as well as recruited others to assist in the distribution of cocaine.  He was held responsible today for his role in the distribution of over 130 kilograms of cocaine. 
To date, other defendants that have been convicted and sentenced include:

• Luis Alberto Navarro – Sentenced December 13, 2013 to 360 months;
• Omar A. Martinez - Sentenced June 4, 2013 to 292 months;
• Adrian Demar Blunt - Sentenced February 12, 2013 to 240 months; and
• Mario A. Ruiz - Sentenced September 30, 2013 to 60 months.

This case was investigated by the Drug Enforcement Administration and the Federal Bureau of Investigation and is part of an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, “Fire and Ice.”  Assistant United States Attorneys V. Kathleen Dougherty and Kevin M. Comstock 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. – Michael Brian Dunkel, 60, of Merritt Island, Fl., was sentenced today to 60 months in prison, followed by 2 years of supervised release, for fraudulently obtaining more than $4.4 million in government contract payments that should have gone to disadvantaged small businesses.  Dunkel also was ordered to pay a $12,500 fine and  $2,960,697.37 in forfeiture.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; and Inspector General Paul K. Martin of the National Aeronautics and Space Administration (NASA) made the announcement after sentencing by United States District Judge Gerald Bruce Lee.
Dunkel pleaded guilty on May 23, 2013, to one count of major government fraud.  According to court documents, Dunkel learned in 2005 that Keith Hedman, an executive at an Arlington-based security service consulting company referred to as Company A in court records, illegally controlled Company B, another Arlington-based security service consulting company. Company B was a participant in the Small Business Administration (SBA) “Section 8(a)” program, which enables certain small businesses to receive contracts set aside for minority-owned and disadvantaged small businesses. Although Hedman controlled Company B, Company B had obtained its 8(a) status based on the disadvantaged status of Dawn Hamilton, its titular owner.
Dunkel admitted that he agreed to pay Hedman and Company B a 10-15 percent pass-through fee in exchange for Company B allowing Dunkel to fraudulently use its 8(a) status to obtain NASA and other U.S. government contracts.  Although Company B was required to perform at least 50 percent of the work on the contracts and had represented it would do so, no Company B employees actually performed any work.  Instead, Dunkel and others did 100 percent of the work as independent contractors, but they concealed that fact from the government agencies. In addition, Dunkel submitted fraudulent proposals and invoices to hide their scheme, used a third-party company’s Federal Employer Identification Number to prevent reporting of his contractor income to the IRS, and did not pay any income taxes on the income he received from Company B.
Seven defendants, including Hedman and Hamilton, have previously been sentenced in connection with the government contracting fraud scheme and a related bribery scheme.
This case was investigated by the NASA Office of the Inspector General (OIG), the SBA OIG, the Defense Criminal Investigative Service, the General Services Administration OIG and the Department of Homeland Security OIG.  Assistant U.S. Attorneys Chad Golder and Ryan Faulconer, a former Trial Attorney for the Criminal Division’s Fraud 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.

MIDDLESEX COUNTY, Va. – Connie Rhoades Bowler, 47, of Gloucester, Virginia; Melody Rhoades Green, 52, of Topping, Virginia; John Stacey Rhoades, 41, of Hayes, Virginia; Brandon Bowler, 22, of Gloucester, Virginia; Robert Rhoades, 19, of Hayes, Virginia; Christopher Lowery, 29, of Farnham, Virginia; and Harrell Kenneth Stockwell, Jr., 54, of Gloucester, Virginia, were arrested yesterday on charges of conspiracy to distribute and possess with intent to distribute smokeable synthetic cannabinoids (Schedule I controlled substances or analogues of Schedule I controlled substances) with intent for human consumption, and drug paraphernalia.

Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Scot R. Rittenberg, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HIS) Washington; and Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, Internal Revenue Service-Criminal Investigation, along with Sheriff David P. Bushey of Middlesex County, Virginia; Sheriff  Stanley Clarke of Essex County, Virginia; Chief James G. Ashworth of the Tappahannock Police Department; and W. Steven Flaherty, Superintendent, Virginia State Police, made the announcement after the initial appearances of the defendants before United States Magistrate Judge David J. Novak.

Each of the defendants faces a maximum penalty of 20 years’ imprisonment if convicted of the conspiracy charge.  Additionally, Connie Bowler, Melody Green and John Rhoades are charged with maintaining drug involved premises for the Slipknots Trading & Tobacco stores located in Topping and Tappahannock, Virginia.  That charge also carries up to 20 years’ imprisonment. 

According to the indictment, the seven defendants were engaged in a conspiracy to distribute various forms of synthetic cannabinoids from May 14, 2012 until February 18, 2014.  In court proceedings today and in documents filed with the court, authorities allege that Connie Bowler, Melody Green and John Rhoades were the owners of Slipknots Trading & Tobacco, LLC, a tobacco store that sold smokeable synthetic cannabinoid (“SSC”) products, often commonly referred to as “Spice,” and items ranging from water pipes to rolling papers, used to smoke SSC.  The documents assert that over the course of an 18-month investigation, law enforcement made numerous controlled purchases of SSC from the Slipknots stores in Topping and Tappahannock Virginia.  It is alleged that although some of the SSC that the stores sold was not yet regulated, much of the SSC purchased was in fact illegal Schedule I controlled substances or Schedule I controlled substance analogues.  The authorities allege that Slipknots Trading & Tobacco sold over $3 million of SSC product over an 18 month period of time. 

The investigation was conducted by ICE-HSI, IRS, the VSP Tri-River Drug Task Force and special agents with the VSP Bureau of Criminal Investigations Richmond and Chesapeake Field Offices, the Middlesex Sheriff’s Office, the Essex County Sheriff’s Office, and the Tappahannock Police Department.  Assistant United States Attorney Olivia L. Norman is prosecuting the case on behalf of the United States.
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.

RICHMOND, Va. – Trever Tutwiler, 22, of Henrico, Va., was sentenced today to 78 months in prison, followed by 5 years of supervised release, for his leadership role in conspiring to import a kilogram of methylone into the United States from China.  

            Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Scot R. Rittenberg, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) Washington; and Douglas A. Middleton, Chief of the Henrico County Police Division, made the announcement after sentencing by United States District JudgeJohn A. Gibney.

            Tutwiler pled guilty on November 18, 2013.  According to court documents, Tutwiler served as the leader of a suburban drug trafficking group that imported methylone from China.  As part of the conspiracy, Tutwiler pooled money from his co-conspirators and ordered a kilogram of methylone off the website of a business located in China.  Upon entering the United States, the package of methylone was discovered by law enforcement.  Subsequently, law enforcement conducted a controlled delivery of the methylone to Tutwiler’s residence.  After taking possession of the methylone, Tutwiler left his residence, and was apprehended by police.   
This case was investigated by ICE HSI and the Henrico County Police Division.  Assistant United States Attorney Erik S. Siebert and Special Assistant United States Attorney Matthew Ackley 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. – Henry Washington Yeh, age 32, of Vienna, Va., pleaded guilty today to filing false and fraudulent tax returns.  Henry Yeh’s father, Jimmy An-Twig Yeh, age 57, and his mother Zhi Hua Wang Yeh, age 60, both of Vienna, Va., pleaded guilty to aiding the filing of false tax returns.
Dana J. Boente, Acting 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 Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after the pleas were accepted by United States District Judge Gerald Bruce Lee.
The defendants were indicted on Sept. 24, 2013 by a federal grand jury on money laundering and tax charges.  Each defendant faces a maximum penalty of three years in prison when they are sentenced on May 9, 2014.
In a statement of facts filed with the plea agreement, Henry Yeh, a convicted drug dealer, admitted that he generated almost $1 million in illicit cash proceeds from the distribution of over 100 kilograms of marijuana from 2004 through 2009.  Yeh took steps to conceal from law enforcement and the IRS the true amount of cash proceeds he made from selling marijuana, and he solicited others to help him conceal his drug proceeds.

In 2009, 2010 and 2012, Yeh filed false and fraudulent federal income tax returns with the IRS for taxable years 2005, 2006 and 2007 by misrepresenting the actual source of his gross income and by understating the actual amount of gross income he earned from selling marijuana.  His parents, who knew Yeh earned substantial income from illicit activity, aided him in the filing of a false tax return for 2007.

Yeh purchased a number of assets with his drug proceeds either in his own name or jointly with others.  As part of their pleas, the defendants have agreed to forfeit approximately $2.1 million worth of assets, including real property in Washington, D.C. and Ashburn, Va.; $918,166.73 from an investment brokerage account; an SUV; and $100,000 in cash.

This case was investigated by the DEA’s Washington Field Division and IRS-CI.  Assistant United States Attorneys Kimberly R. Pedersen and Karen L. Taylor 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. – Henry Washington Yeh, age 32, of Vienna, Va., pleaded guilty today to filing false and fraudulent tax returns.  Henry Yeh’s father, Jimmy An-Twig Yeh, age 57, and his mother Zhi Hua Wang Yeh, age 60, both of Vienna, Va., pleaded guilty to aiding the filing of false tax returns.
Dana J. Boente, Acting 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 Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after the pleas were accepted by United States District Judge Gerald Bruce Lee.
The defendants were indicted on Sept. 24, 2013 by a federal grand jury on money laundering and tax charges.  Each defendant faces a maximum penalty of three years in prison when they are sentenced on May 9, 2014.
In a statement of facts filed with the plea agreement, Henry Yeh, a convicted drug dealer, admitted that he generated almost $1 million in illicit cash proceeds from the distribution of over 100 kilograms of marijuana from 2004 through 2009.  Yeh took steps to conceal from law enforcement and the IRS the true amount of cash proceeds he made from selling marijuana, and he solicited others to help him conceal his drug proceeds.

In 2009, 2010 and 2012, Yeh filed false and fraudulent federal income tax returns with the IRS for taxable years 2005, 2006 and 2007 by misrepresenting the actual source of his gross income and by understating the actual amount of gross income he earned from selling marijuana.  His parents, who knew Yeh earned substantial income from illicit activity, aided him in the filing of a false tax return for 2007.

Yeh purchased a number of assets with his drug proceeds either in his own name or jointly with others.  As part of their pleas, the defendants have agreed to forfeit approximately $2.1 million worth of assets, including real property in Washington, D.C. and Ashburn, Va.; $918,166.73 from an investment brokerage account; an SUV; and $100,000 in cash.

This case was investigated by the DEA’s Washington Field Division and IRS-CI.  Assistant United States Attorneys Kimberly R. Pedersen and Karen L. Taylor 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.

MIDDLESEX COUNTY, Va. – Connie Rhoades Bowler, 47, of Gloucester, Virginia; Melody Rhoades Green, 52, of Topping, Virginia; John Stacey Rhoades, 41, of Hayes, Virginia; Brandon Bowler, 22, of Gloucester, Virginia; Robert Rhoades, 19, of Hayes, Virginia; Christopher Lowery, 29, of Farnham, Virginia; and Harrell Kenneth Stockwell, Jr., 54, of Gloucester, Virginia, were arrested yesterday on charges of conspiracy to distribute and possess with intent to distribute smokeable synthetic cannabinoids (Schedule I controlled substances or analogues of Schedule I controlled substances) with intent for human consumption, and drug paraphernalia.

Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Scot R. Rittenberg, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Washington; and Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, Internal Revenue Service-Criminal Investigation, along with Sheriff David P. Bushey of Middlesex County, Virginia; Sheriff  Stanley Clarke of Essex County, Virginia; Chief James G. Ashworth of the Tappahannock Police Department; and W. Steven Flaherty, Superintendent, Virginia State Police, made the announcement after the initial appearances of the defendants before United States Magistrate Judge David J. Novak.

Each of the defendants faces a maximum penalty of 20 years’ imprisonment if convicted of the conspiracy charge.  Additionally, Connie Bowler, Melody Green and John Rhoades are charged with maintaining drug involved premises for the Slipknots Trading & Tobacco stores located in Topping and Tappahannock, Virginia.  That charge also carries up to 20 years’ imprisonment. 
According to the indictment, the seven defendants were engaged in a conspiracy to distribute various forms of synthetic cannabinoids from May 14, 2012 until February 18, 2014.  In court proceedings today and in documents filed with the court, authorities allege that Connie Bowler, Melody Green and John Rhoades were the owners of Slipknots Trading & Tobacco, LLC, a tobacco store that sold smokeable synthetic cannabinoid (“SSC”) products, often commonly referred to as “Spice,” and items ranging from water pipes to rolling papers, used to smoke SSC.  The documents assert that over the course of an 18-month investigation, law enforcement made numerous controlled purchases of SSC from the Slipknots stores in Topping and Tappahannock Virginia.  It is alleged that although some of the SSC that the stores sold was not yet regulated, much of the SSC purchased was in fact illegal Schedule I controlled substances or Schedule I controlled substance analogues.  The authorities allege that Slipknots Trading & Tobacco sold over $3 million of SSC product over an 18 month period of time. 

The investigation was conducted by ICE-HSI, IRS, the VSP Tri-River Drug Task Force and special agents with the VSP Bureau of Criminal Investigations Richmond and Chesapeake Field Offices, the Middlesex Sheriff’s Office, the Essex County Sheriff’s Office, and the Tappahannock Police Department.  Assistant United States Attorney Olivia L. Norman is prosecuting the case on behalf of the United States.
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.

RICHMOND, Va. – Shawn Rives, 33, of Petersburg, Va., was arrested today on an outstanding federal warrant after failing to appear in court on November 7, 2013.  Rives was indicted on October 16, 2013, and failed to appear before United States District Court Judge James R. Spencer for his arraignment.  He is charged with two counts of possession with the intent to distribute cocaine base and three counts of possession with the intent to distribute cocaine hydrochloride.  If convicted, Rives faces a maximum penalty of 40 years in prison on each of the cocaine base counts and 20 years in prison on each of the cocaine hydrochloride counts.

 Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Jeffrey C. Mazanec, Special Agent in Charge of the FBI’s Richmond Field Office; Robert Mathieson, U.S. Marshal for the Eastern District of Virginia; and Ray J. Tarasovic, Chief of Police for the City of Richmond Police Department, made the announcement.

The United States Marshal Service (USMS) Fugitive Task Force, in conjunction with the FBI, arrested Rives early this morning at the Southwood Apartments in Richmond, Virginia.  According to an affidavit filed in the case, as the Fugitive Task Force made entry into the apartment, Rives kicked through the drywall of a closet in the residence, and squeezed through the wall, entering the bedroom of a five year old girl in the apartment next door where he attempted to hide. 

An indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.

This case is being investigated by the FBI and the Richmond Police Department.   Assistant United States Attorney Angela Mastandrea-Miller 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.

Febrary 24, 2014

ALEXANDRIA, Va. – Kenia Verges, 27, and Alicia Garcia Rivera, 47, of Providence, Rhode Island, were convicted today by a federal jury of participating in a conspiracy to import heroin into the Unites States.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Scot R. Rittenberg, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), Washington, made the announcement after the verdict was accepted by United States District Judge James. C. Cacheris.

Verges and Garcia Rivera each face a maximum penalty of twenty years in prison when they are sentenced on May 29, 2014.

Verges and Garcia Rivera were indicted on Nov. 14, 2013, by a federal grand jury on conspiracy to import heroin into the United States.  According to court records and evidence presented at trial, the defendants, who are mother and daughter, were recruited by an international heroin cartel headed by a violent kingpin who recently was apprehended in Guatemala on drug charges.  As part of the cartel’s scheme, the defendants each hid approximately two kilograms of heroin in seemingly innocent packaging for foodstuffs, which the defendants smuggled in their luggage onto commercial airline flights from Guatemala into the United States.

Several members of the cartel smuggled or attempted to smuggle multiple kilograms of heroin through Dulles International Airport in the Eastern District of Virginia, as well as through New York’s John F. Kennedy International Airport and Chicago O’Hare International Airport.  In addition, the cartel’s managers in the United States wired and transferred millions of dollars in drug proceeds to the kingpin in Guatemala.

This case was investigated by HSI Washington.  Assistant United States Attorney Gene Rossi and Special Assistant United States Attorney Edward Reilly 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. – Thaddaeus Snow, a/k/a “Storm,” 34, of Manassas, Va., and William Sykes, a/k/a “Black,” 29, of Bealeton, Va., were convicted today by a federal jury of charges that included conspiracy to commit racketeering, violence in aid of racketeering, robbery, conspiracy to distribute cocaine base, conspiracy to commit sex trafficking by force and coercion, and firearms offenses.  Jameel Aleem, a/k/a “Nino B,” 33, of Washington, D.C., was convicted of conspiracy to distribute cocaine base.

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 verdict was accepted by United States District Judge Leonie M. Brinkema.

The defendants face a maximum penalty of life when they are sentenced on May 9, 2014.  Snow faces a mandatory minimum of forty years in prison, Sykes faces a minimum of twenty years, and Aleem is subject to a mandatory term of ten years.

“These defendants and their fellow gang members threatened the safety of our communities by committing acts of violence, dealing drugs, and dehumanizing women through prostitution by force and coercion,” said Acting U.S. Attorney Boente.  “The 37 convictions that have been obtained against members of the Nine Trey Gangsters over the past year reflect the outstanding cooperation of federal, state and local law enforcement to combat these pernicious crimes.”

“The multiple convictions returned by the jury today send a clear message to members of these violent criminal enterprises: we will not tolerate your illegal activities,” said Assistant Director in Charge Parlave.  “The FBI, through the Northern Virginia Gang Task Force and our partners in local law enforcement, will continue to track down and arrest these brutal gang members who resort to using violent acts in an attempt to threaten our communities.”

Snow, Sykes and Aleem were indicted by a federal grand jury on Sept. 26, 2013, along with twenty-one other members and associates of the Nine Trey Gangsters street gang, on charges of conspiracy to commit racketeering, violence in aid of racketeering, conspiracy to commit sex trafficking, conspiracy to commit robbery, conspiracy to distribute 280 grams or more of crack cocaine and multiple counts related to the possession and use of firearms.

According to court records and evidence presented at trial, the Nine Trey Gangsters are a Bloods street gang set of the United Blood Nation that was founded in New York City in the early 1970’s.  Thaddaeus Snow led a “line-up” of the Nine Trey Gangsters, which operated as a criminal enterprise in Virginia and committed criminal activity in multiple states.  From 2008 until the date of the indictment, Snow’s line-ups of Nine Trey gangsters engaged in racketeering activity involving the sex trafficking of women using force and coercion in Virginia, Maryland, North Carolina, New York and elsewhere; the commission of robberies; and the distribution of cocaine, crack, marijuana, heroin, ecstasy and prescription painkillers.  The evidence at trial also showed that Snow, Sykes and other Nine Trey Gangsters dealt in counterfeit United States currency and used counterfeit currency to finance wholesale drug purchases.

In addition, the evidence at trial showed that Snow and his subordinate gang members undertook several acts of violence.  On or about April 1, 2010, Snow directed Nine Trey Gangsters to give a female victim a “buck-fifty,” consisting of slashing the woman’s face with a knife from mouth to ear with the aim of requiring 150 stiches to close the wound, because the woman had stolen proceeds of Snow’s drug sales and used some of Snow’s drug supply.  The slashing was carried out by Sykes.  Sykes and other gang members beat a man unconscious who may have stolen drugs from a gang member, and Sykes also committed a shooting on April 12, 2010, after the shooting victims became involved in a dispute with one of the gang members.  Additionally, Sykes slapped and choked a prostitute when she concealed money she earned from him.

Snow, Sykes and Aleem were convicted following a trial that began on Feb. 11, 2014. With the conviction of these three defendants, all twenty-four individuals named in the Sept. 26, 2013 indictment have now been convicted.  The following individuals named in the indictment previously pleaded guilty, admitted their involvement with the Nine Trey Gangsters and have been sentenced in federal court: Antawn Minor, a/k/a “Noid,” 33, of Manassas, Va., pleaded guilty to conspiracy to distribute crack cocaine.  He was sentenced to 168 months in prison.
Deontae Holland, a/k/a “D-Boy,” 27, of Bealeton, Va., pleaded guilty to conspiracy to commit racketeering and conspiracy to distribute crack cocaine.  He was sentenced to 15 years in prison.
Markeith Kerns, a/k/a “LTK,” 20, of Summerduck, Va., pleaded guilty to conspiracy to commit racketeering and conspiracy to distribute crack cocaine.  He was sentenced to 10 years in prison.
Janee Yates, a/k/a “Alizia,” 24, of Warrenton, Va., pleaded guilty to conspiracy to commit racketeering and conspiracy to distribute crack cocaine.  She was sentenced to 10 years in prison.
Nicole Yates a/k/a “Merlot,” 27, of Fairfax, Va., pleaded guilty to conspiracy to commit sex trafficking and conspiracy to commit robbery.  She was sentenced to 10 years in prison.
Aayron Marshal, a/k/a “Mook ,” 23, of Warrenton, Va., pleaded guilty to conspiracy to distribute crack cocaine.  He was sentenced to 10 years in prison.
Lionel Ritchie, a/k/a “Boogie,” 30, of Remington, Va., pleaded guilty to conspiracy to distribute crack cocaine.  He was sentenced to 7 years in prison.
Candy Minor, 29, of Fredericksburg, Va., pleaded guilty to conspiracy to commit sex trafficking.  She was sentenced to two years in prison.

            The following individuals named in the indictment previously pleaded guilty, admitted their involvement with the Nine Trey Gangsters and are awaiting sentencing: Curtis Martino, a/k/a “Curtis Dodd,” a/k/a “Red Rum,” 30, of Elkridge, Md., pleaded guilty to conspiracy to commit racketeering and discharging a firearm during a crime of violence.
George Williams, a/k/a “Champ,” 29, of Bealeton, Va., pleaded guilty to conspiracy to commit racketeering and discharging a firearm during a crime of violence.
William Sharp Manning a/k/a “Ill Will,” 25, of Warrenton, Va., pleaded guilty to conspiracy to commit racketeering and conspiracy to distribute crack cocaine.
James Watson, a/k/a “Black Kat,” 35, of Gainesville, Va., pleaded guilty to conspiracy to commit racketeering.
Christopher Head a/k/a “Briss,” 26, of Washington, D.C., pleaded guilty to conspiracy to commit racketeering and conspiracy to distribute crack cocaine.
Kaleef Tweedy, a/k/a “Bloody Tweed,” 24, of Dumfries, Va., pleaded guilty to conspiracy to commit sex trafficking, conspiracy to commit robbery and discharging a firearm during a crime of violence.
Justin Finley, a/k/a “J Mo,” 24, of Manassas, Va., pleaded guilty to conspiracy to distribute crack cocaine.
Stephon Greene a/k/a “Blitz,” 21, of Manassas, Va., pleaded guilty to conspiracy to distribute crack cocaine.
LaTonya Snow, a/k/a “Lady Dynasty,” 30, of Manassas, Va., pleaded guilty to conspiracy to transport a person interstate for the purpose of prostitution.
Devante Jordan, a/k/a “Trey,” 21, of Alexandria, Va., pleaded guilty to conspiracy to commit robbery and discharging a firearm during a crime of violence.
Joshua Pendleton Brooks a/k/a “Wacko,” 27, of Manassas, Va., pleaded guilty to conspiracy to distribute crack cocaine.
Deyonka Gaskins, 29, of Manassas, Va., pleaded guilty to conspiracy to distribute crack cocaine.
Gracier Isique, 29, of Manassas, Va., pleaded guilty to conspiracy to distribute cocaine.

The 24 defendants convicted in this indictment brings the total number of Nine Trey Gangster gang members and associates recently convicted in the Eastern District of Virginia to 37 individuals.  On April 2, 2013, an indictment was filed in Richmond against eight Nine Trey Gangster gang members and associates charging them with conspiracy to distribute 280 grams or more of crack cocaine.  All eight of those defendants have previously pleaded guilty to the drug conspiracy charge.  Five other Nine Trey Gangsters have been convicted in Richmond for illegal possession of firearms and dealing in counterfeit currency.
This case was investigated by the FBI’s Washington Field Office and the Fairfax County Police Department, with assistance from the Northern Virginia Regional Gang Task Force, Hampton Police Department, Fauquier County Sheriff’s Office, Manassas City Police Department and the United States Marshals Service.  Assistant United States Attorneys Adam B. Schwartz and Dennis M. Fitzpatrick are prosecuting the Alexandria defendants on behalf of the United States.  Assistant United States Attorneys Angela Mastandrea-Miller and Adam B. Schwartz are prosecuting the Richmond defendants.

This case is part of an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation dubbed Operation “Ruby Red,” which has been focusing on the illegal distribution of narcotics by alleged organized crime members.

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. – Anthony R. Bilby, 40, of Leesburg, Va., was sentenced today to 16 months in prison, followed by two years of supervised release, for conspiracy to commit wire fraud and major government fraud.  Bilby also was ordered to forfeit $1,065,103.90, representing his personal proceeds from the conspiracy.

Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Carlton Mann, Chief Operating Officer, Department of Homeland Security (DHS), Office of Inspector General; Brian D. Miller, General Services Administration (GSA) Inspector General; Peggy E. Gustafson, Small Business Administration (SBA) Inspector General; and Richard J. Griffin, Acting Inspector General, Department of Veterans Affairs, Office of Inspector General, made the announcement after sentencing by United States District Judge Anthony J. Trenga.

Bilby pleaded guiltyon December 2, 2013.  According to court documents, from April 2007 through November 2012, while Bilby was employed by two service-disabled veteran-owned small businesses, he participated in a conspiracy to obtain government contracts through fraud and misrepresentation.  During this time period, Bilby caused employees at a nominal competitor to submit inflated bids on the same procurements for which Bilby submitted bids on behalf of his employers.  Bilby also gained improper access to the procurement process through co-conspirators working within the government.  These co-conspirators provided Bilby and others with internal government cost estimates, so that Bilby knew how much the government was willing to pay before he drafted his and his competitor’s bids.  Bilby also drafted portions of internal procurement documents in a manner that increased his odds of winning contracts without facing actual competition.

One of Bilby’s employers, with Bilby’s knowlege and assent, agreed to pay ten percent of its profits on a contract worth more than $24 million to co-conspirators within the government.  These co-conspirators, in turn, provided Bilby and his employer with improper access to documents and a competitive advantage in obtaining the contract.  In total, the conduct of Bilby and others resulted in the award of more than $33 million in federal contracts through fraudulent procurement practices.

This case was investigated by the Offices of the Inspector General for DHS, GSA, SBA, and the VA, with assistance from DHS’s Office of the Chief Security Officer, Cyber Forensic Branch.  Assistant United States Attorney Kosta S. Stojilkovic 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.

Straw buyers, false applications used to buy 36 homes with $20 million in loans

ALEXANDRIA, Va. – Ging-Hwang “Felicia” Tsoa, 59, of Broadlands, Va., was sentenced today to 30 months in prison, followed by three years of supervised release, for her role in a mortgage fraud conspiracy that involved approximately 36 properties in northern Virginia and nearly $20 million in fraudulently obtained loans.  Tsoa also was ordered to pay approximately $1.4 million in restitution to lenders and to forfeit to the government $45,738 in proceeds of her crimes.

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 sentencing by United States District Judge James C. Cacheris.

A federal jury convicted Tsoa of conspiracy and bank fraud charges on Nov. 15, 2013.

According to court records and evidence at trial, Tsoa used her position as a loan officer at First Empire Mortgage in Fairfax, Va., and Lifetime Financial Services in Herndon, Va., to defraud mortgage lenders as part of a scheme to profit from fraudulently obtained mortgage loans and the purchase of residential real estate in northern Virginia.  As part of the scheme, co-conspirator Robert Mikail recruited five individuals, known as “straw buyers,” to serve as nominal purchasers in these transactions.  Tsoa worked with Mikail and co-conspirator Bing-Sing “Cindy” Wang, the owner of Lifetime Financial Services, to falsify critical information on the straw buyers’ loan applications in order to get the loans approved, the transactions closed, and her commissions paid.  In particular, virtually all of the fraudulent loan applications falsely identified Mikail’s Ashburn, Va. jewelry store, Opus Jewelry, as the borrower’s employer, which the conspirators would then falsely verify to the lenders as part of the loan approval process.

In total, the conspiracy involved the purchase of approximately 36 homes in and around Ashburn, Va. from 2005 through 2007, and approximately $19.9 million in loan proceeds disbursed on the basis of fraudulent loan applications.  According to the evidence at trial, Tsoa served as the loan officer on at least nine of these transactions, which resulted in approximately $1.4 million in losses to lenders.

Co-conspirator Wang pleaded guilty to a conspiracy charge on Nov. 20, 2012, and was sentenced to 24 months in prison on Feb. 26, 2013.  Co-conspirator Mikail pleaded guilty to a conspiracy charge on July 17, 2013, and was sentenced to 52 months in prison on Jan. 10, 2014.

This case was investigated by the FBI’s Washington Field Office.  Assistant United States Attorneys Paul J. Nathanson and Jasmine H. Yoon 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. – Steven Jay Perrino, 58, of Hampton, Va., was sentenced today to 61 months in prison, followed by 3 years of supervised release, for theft of government money and aggravated identity theft.  He was ordered to pay $122,134.45 in restitution to the United States Department of Veterans Affairs.  

Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Niall E. Meehan, Special Agent in Charge of the U.S. Department of State’s Bureau of Diplomatic Security’s Washington Field Office, made the announcement after sentencing by United States District Judge Arenda L. Wright Allen.

On September 4, 2013, after Diplomatic Security investigative analysts discovered possible fraudulent passport applications, DS special agents, in conjunction with the Department of Veterans Affairs’ Office of the Inspector General, U.S. Postal Inspector’s Office, and the Hampton and Virginia Beach Police Departments executed search and arrest warrants, which resulted in Perrino’s arrest.  On November 20, 2013, Perrinopled guilty to one count of theft of government money and one count of aggravated identity theft.  According to court documents, Perrino assumed the identities of at least 5 different individuals dating back to 1986.  Perrino was able to assume these identities by obtaining personal information and associated documents and then using that information to apply for official forms of identification such as United States passports and driver’s licenses.  Perrino also enlisted in the Navy and Army under stolen identities.  Following a 10-year fraudulent enlistment in the Army, Perrino applied for and received VA benefits in that person’s name.  He was able to obtain more than $138,000 in benefits via the Montgomery and Post 9/11 GI Bills and federal student loans and grants. 

This case was investigated by the U.S. Department of State, Diplomatic Security Service’s Washington Field Office.  Assistant United States Attorney Randy Stoker is prosecuting the case on behalf of the United States.

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

NORFOLK, Va. – Kimberly Gregory, 54, of Richmond, Va., was sentenced today to twenty months in prison, followed by three years of supervised release, for defrauding the U.S. Department of Veterans Affairs.

Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, made the announcement after sentencing by Chief United States District Judge Rebecca Beach Smith.

Gregory pleaded guilty to the charge of making a false statement on November 19, 2013.  According to court documents, Gregory defrauded the Veteran Affairs (VA) out of educational benefits.  Gregory ran a beauty school in Richmond called Become New Beauty (BNB) and was certified by the VA to receive educational funds for veterans enrolled in its programs.  Rose Simmons, who ran a beauty school called Advanced Cosmetology Institute (ACI) located in Chesapeake, was not certified by the VA to receive VA educational funds for veterans enrolled in that school.  In order to tap into the veteran funds, Simmons and Gregory agreed to falsely submit claims to the VA for ACI students by falsely stating that they were attending BNB.  In addition, they raised the tuition of BNB from approximately $5,000 to nearly $17,000.  Gregory and Simmons caused a loss to the government in excess of $85,000.   Simmons also pled guilty on November 14, 2013 and will be sentenced in April. 

This case was investigated by the U.S. Department of Veteran Affairs, Office of Inspector General.  Assistant United States Attorney Joseph Kosky prosecuted the case on behalf of the United States.

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

NORFOLK, Va. – Dwayne Allen Hardman, 44, of Charleston, W.V., pleaded guilty today to charges of paying bribes to public officials.

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

Hardman was charged by criminal information on Feb. 12, 2014, with paying a bribe to public officials.  Hardman faces a maximum penalty of 15 years in prison when he is sentenced on June 6, 2014. 

According to a statement of facts filed with the plea agreement, in November 2004, Hardman and another businessman established a government contracting corporation in Chesapeake, Va. to provide support to the Military Sealift Command (MSC) on various telecommunications projects.  Shortly thereafter, in early 2005, Hardman and his business partner agreed to pay cash bribes to two MSC officials in exchange for official action to steer government contracts to Hardman’s corporation.  From March 2005 and until 2007, Hardman, his business partner and others paid the MSC officials approximately $3,000 each month in cash bribes.  During this time, Hardman and his business partner withdrew approximately $144,000 in cash, which was then provided to the two MSC officials in exchange for their assistance in securing MSC contracting and subcontracting business for Hardman’s company. 

According to court documents, in February 2009, Hardman left his former business and formed another government contracting company in Chesapeake with another businessman.  The two MSC officials again agreed to steer contracting work to Hardman’s new company in exchange for receiving bribes from Hardman and his new business partner.  In May 2009, Hardman and his new business partner paid each of the two MSC officials $25,000 in cash bribes.

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.

This case was investigated by Special Agents of the Defense Criminal Investigative Service, the Naval Criminal Investigative Service, and the FBI Norfolk Field Office.  Assistant United States Attorney Stephen W. Haynie and Trial Attorney Emily Rae Woods, of the Criminal Division’s Public Integrity 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.

ALEXANDRIA, Va. – Keith Johnson, 46, and his wife, Angela Johnson, 45, of Maryville, Tenn., were sentenced today for conspiring to commit wire fraud.  Keith Johnson was sentenced to 30 months in prison, and Angela Johnson was sentenced to serve six months in prison, to be followed by six months of house arrest.  Both defendants also were sentenced to two years of supervised release and ordered to forfeit $2,034,684 to the United States.

Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Mythili Raman, Acting Assistant Attorney General of the Justice Department’s Criminal Division; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Robert E. Craig, Defense Criminal Investigative Service (DCIS) Special Agent in Charge of the Mid-Atlantic Field Office; John Sopko, Special Inspector General for Afghanistan Reconstruction (SIGAR); and Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU), made the announcement after the pleas were accepted by United States District Judge Leonie M. Brinkema.

According to court documents, Keith Johnson served as the Program Manager for a Department of Defense contractor that operated a Central Maintenance Facility (CMF) in Kabul, Afghanistan and other facilities in that country to maintain and repair vehicles used by the Afghan National Army.  In his position during 2007-2008, Keith Johnson was involved in purchasing vehicle parts from vendors.

As part of the scheme, Keith Johnson and his wife, Angela, formed a company in Tennessee, Military Logistics Support (MLS), and listed only the names of relatives as officials in the documents filed.  Angela Johnson operated the company.  When Keith Johnson’s company solicited quotes for different vehicle parts that were needed, Angela Johnson, using her maiden name of “Angela Gregory” to conceal her relationship to Keith Johnson, responded with quotes based on parts that she was able to purchase from other vendors.  Keith Johnson used his position as Program Manager to write letters justifying awards of purchase orders for parts to MLS without seeking competitive quotes, and in instances in which there had been competitive quotes, approving recommendations that the awards be made to MLS.

The Johnsons also conspired with John Eisner and Jerry Kieffer, two individuals who worked at the CMF as subcontractors to Keith Johnson’s company, to have Keith Johnson similarly steer purchase orders for other types of vehicle parts to Eisner’s and Kieffer’s separate company, Taurus Holdings.  Eisner submitted the quotes for Taurus using a fake name to conceal his connection to the subcontractor.  Eisner and Kieffer paid kickbacks to the Johnsons and on occasion engaged in collusive bidding with the Johnsons, so that MLS could win competitions for certain purchase orders.  Eisner and Kieffer were sentenced on Dec. 18, 2013 by Judge Brinkema to one year imprisonment and six months imprisonment, respectively.

As a result of the scheme, MLS was awarded more than $11 million worth of purchase orders for vehicle parts by Keith Johnson’s company.

This case was investigated by DCIS, FBI, SIGAR, and Army MPFU. Assistant United States Attorneys Jack Hanly and Ryan Faulconer of the U.S. Attorney’s Office for the Eastern District of Virginia and Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section, who also is a Special Assistant U.S. Attorney for the Eastern District of Virginia, 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.

One of the Seriously Wounded Victims Was Pregnant

ALEXANDRIA, Va. – Edgar Benitez Hernandez, also known as “Shadow,” 25, of the District of San Miguel, El Salvador, pleaded guilty today to two counts of using and discharging a firearm during or in relation to attempted murder in aid of racketeering.  Benitez Hernandez was extradited from El Salvador to the United States on Dec. 18, 2013, and had been indicted previously by an Eastern District of Virginia grand jury on June 13, 2010, on multiple racketeering charges, including attempted murder.

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 Maggie DeBoard, Town of Herndon Chief of Police, made the announcement after the plea was accepted by United States District Judge Claude M. Hilton.

Acting U.S. Attorney Boente stated, “The apprehension, extradition, and now conviction of this extremely violent gang member is indicative of both the cooperation and commitment of U.S. and Salvadoran law enforcement and prosecutors to bring to justice those criminals who commit violent acts on U.S. soil, even when the perpetrators flee the United States to the perceived safety of the Central American hills.”

“This case is an example of the hard work and partnership between FBI agents and police detectives who serve on the Northern Virginia Gang Task Force,” said Assistant Director Parlave. “Together with prosecutors, their efforts are essential to investigating violent gang members who attempt to instill fear in our communities and bringing those individuals to justice, wherever they may be.”

“The arrest and extradition of Benitez Hernandez is testimony to the importance of integrating local, federal and international law enforcement partners.  It demonstrates a unified, international commitment to justice and in apprehending our most violent criminal suspects,” said Mike Chapman, Sheriff of Loudoun County.

Chief of Police DeBoard stated, “The passage of time does not deter nor diminish the efforts of local and federal law enforcement partners to seek out and prosecute those responsible for committing violence in our communities.  This case serves as an example of law enforcement’s dedication in ensuring those responsible for violent crimes are brought to justice.  It also highlights the invaluable partnership between the Northern Virginia Gang Task Force and local and federal agencies in this region.”

Benitez Hernandez, who now stands convicted of two counts of using and discharging a firearm during or in relation to attempted murder in aid of racketeering, faces a maximum penalty of life in prison and a mandatory minimum period of 35 years in prison when he is sentenced on May 23, 2014.

According to the statement of facts filed with the plea agreement, Benitez Hernandez, a soldier in the notoriously violent transnational street gang Mara Salvatrucha 13 (“MS-13”), attempted to murder two individuals on Sept. 13, 2008, in Loudoun County, Va.  On that date, Benitez Hernandez concealed himself behind some shrubs and when the male and pregnant female victims were within range, he fired multiple shots while yelling “Mara Salvatrucha Cabrones.”  Both of the victims were critically injured and likely would have died were it not for immediate surgical intervention.  The unborn baby also survived the wounding.  Benitez Hernandez committed the double shooting to increase his position within MS-13’s criminal enterprise.

On May 22, 2013, Benitez Hernandez was apprehended in El Salvador by an elite Salvadoran investigative unit known as the Transnational Anti-Gang (TAG) Task Force.  This extradition marks the first time in recent history that a Salvadoran citizen has been extradited to the United States to be held accountable for gang-related crimes committed in the United States.

This case was investigated by the Federal Bureau of Investigation, Loudoun County Sheriff’s Office and the Northern Virginia Gang Task Force, with assistance from the Town of Herndon Police Department.  The United States law enforcement partners involved in the investigation and prosecution of Benitez Hernandez would like to thank the Salvadoran National Police for their outstanding assistance in bringing this fugitive to justice.  Acting U.S. Attorney Dana J. Boente also thanked the FBI’s Legal Attaché Office in El Salvador, the Government of El Salvador, and the U.S. Department of Justice’s Office of International Affairs, each of which were critical in securing the custody and extradition of Benitez Hernandez.  Assistant United States Attorneys Patricia Haynes and Zach Terwilliger 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. – Tyler Eugene Harber, 34, of Alexandria, a former campaign finance manager and political consultant, pleaded guilty today to coordinating $325,000 in federal election campaign contributions by a political action committee (PAC) to a Congressional campaign committee.  This is the first criminal prosecution in the United States based upon the coordination of campaign contributions between political committees.  

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division; and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Liam O’Grady.

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

“The Department of Justice is fully committed to addressing the threat posed to the integrity of federal primary and general elections by coordinated campaign contributions, and will aggressively pursue coordination offenses at every appropriate opportunity,” said Assistant Attorney General Caldwell. 
“Today, Mr. Harber took responsibility for violating federal election campaign laws by illegally coordinating payments between a super pac and a candidate’s campaign committee,” said Assistant Director in Charge McCabe.  “The FBI will continue to investigate allegations of campaign finance abuse which are in place to ensure openness and fairness in our elections so the people’s interests are protected.”

Harber pleaded guilty to one count of coordinated federal election contributions and one count of making false statements to the FBI. He faces a maximum penalty of 10 years in prison when he is 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.

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

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

Harber further admitted that he told multiple lies when interviewed by the FBI concerning his activities.
This case was investigated by the FBI’s Washington Field Office, Northern Virginia Resident Agency.  The case is being prosecuted by Assistant U.S. Attorney Mark D. Lytle of the Financial Crimes and Public Corruption Unit of the Eastern District of Virginia, and Richard C. Pilger, Director of the Election Crimes Branch of the Criminal Division’s Public Integrity Section.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-373.

 

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ALEXANDRIA, Va. – Kyle Alifom, 20, of Vienna, Va., pleaded guilty today to tampering with evidence for hiding the body of Emylee Lonczak, a 16-year-old from McLean, Va. who died after a heroin overdose.

Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Karl C. Colder, Special Agent in Charge for 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 United States District Judge Claude M. Hilton.

Alifom faces a maximum penalty of 20 years in prison when heis sentenced on May 16, 2014.

In a statement of facts filed with the plea agreement, Alifom admitted that he and three other individuals, including Emylee Lonczak, traveled from Virginia into Washington, D.C. to purchase heroin.  All four people used the heroin, and Lonczak became unconscious.  The group traveled back to Virginia, and one of the other individuals dropped off the defendant and Lonczak, who remained unconscious, at the defendant’s residence in Vienna, Va.

Alifom and the other individual put Lonczak in a basement bedroom.  The following morning, Alifom discovered that Lonczak had died.  Alifom then dragged Lonczak’s body into a wooded area behind a neighbor’s house and covered the body with an abandoned window screen that he found nearby.  The Fairfax County Police Department located Lonczak’s body approximately one day later.  An autopsy and toxicology report confirmed that Lonczak had a fatal level of heroin in her system.

This case was investigated bythe Fairfax County Police Department and the DEA. Assistant United States 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 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. – Leurys Antonio Olivo, 29, of the Bronx, New York, was sentenced today to 60 months in prison, followed by two years of supervised release, for conspiracy to defraud the government and aggravated identity theft.  Olivo also was ordered to pay restitution to the U.S. Treasury in the amount of $42,175.28.

Dana J. Boente, Acting 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 sentencing by United States District Judge Leonie M. Brinkema.

Olivo pleaded guiltyon Nov. 21, 2013.  According to court documents, Olivo, who is an illegal alien and a citizen of the Dominican Republic, organized and led a stolen identity refund fraud scheme from his base of operations in the Bronx.  He obtained stolen names, social security numbers, and dates of birth of real people from sources in Puerto Rico.  Olivo then caused others to file fraudulent tax returns on behalf of the identity theft victims, and caused the IRS to mail refund checks to addresses under his or his co-conspirators’ control.

Olivo sought to expand his scheme into the Eastern District of Virginia, and as part of that effort, he sold two fraudulently obtained refund checks to an undercover agent in Woodbridge, Va.  Olivo also recruited a co-conspirator, Juan-Alexis Lima-Castillo, to cash fraudulently obtained refund checks for him in Virginia.  Lima-Castillo previously pleaded guilty to conspiracy and was sentenced to two months in prison.

In total, Olivo caused the IRS to issue at least $351,934.28 in refund checks.  The IRS was able to stop payment on a majority of the checks before they were cashed, thereby limiting actual losses to the U.S. Treasury to $42,175.28.

This case was investigated by IRS Criminal Investigation.  Assistant United States Attorney Kosta S. Stojilkovic 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. – Robert Patrick Hoffman II, 40, of Virginia Beach, Va., was sentenced today to 30 years in prison for attempting to commit espionage against the United States.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; John P. Carlin, Acting Assistant Attorney General of the Justice Department’s National Security Division; Charles T. May Jr., the Naval Criminal Investigative Service (NCIS) Acting Executive Assistant Director for Atlantic Operations; 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 Robert G. Doumar.

“Hoffman attempted to spy on behalf of the Russian Federation and betrayed the trust this country placed in him.  He was willing to place American lives at risk for personal gain,” said Acting U.S. Attorney Boente.  “Today’s sentence should serve as a clear warning to others who would willingly compromise our nation’s most sensitive classified information.”

“By attempting to hand over some of America’s most closely held military secrets, Robert Hoffman put U.S. service members and this country at risk,” said John Carlin, Acting Assistant Attorney General for National Security.  “Today, Mr. Hoffman is being held accountable for his actions.  This prosecution should serve as a warning to others who would compromise our nation’s secrets.  I commend the prosecutors, agents and analysts who worked diligently on this case.”

“Today’s sentencing confirms insider threat exists in our society and pose an enduring risk to our national security,” said Special Agent in Charge Royce Curtin of the Norfolk Field Office of the FBI. “The FBI is dedicated to working with our law enforcement partners to vigorously investigate and disrupt any espionage activity directed against the United States.  Counterintelligence continues to be a very high priority with severe consequences.”

After a five day trial that concluded on August 21, 2013, a Norfolk jury found Hoffman guilty of attempted espionage, as charged in the one count superseding indictment filed on May 8, 2013.  According to court records and the evidence at trial, Hoffman is a U.S. citizen born in Buffalo, New York, who served for 20 years in the U.S. Navy until retiring at the rank of Petty Officer First Class on November 1, 2011. 
Hoffman’s rating in the Navy was as a Cryptologic Technician - Technical (“CTT”).  In that capacity, he worked aboard or in conjunction with U.S. submarines for much of his naval career.  While deployed, Hoffman operated electronic sensors and systems designed to collect data and information about potential adversaries, scanned the operating environment for threats to the submarine, and provided technical and tactical guidance to submarine commanders.  Due to these duties, Hoffman held security clearances and regularly received access to classified national defense information about U.S. submarines and their capabilities and equipment, about adversaries, about specific missions, and about U.S. military and naval intelligence.  As a condition of receiving access to this sensitive information, Hoffman repeatedly signed agreements not to disclose it to those unauthorized to receive it and regularly received training about his obligations to protect the information and to report without delay any suspicious contacts.

In 2012, the FBI initiated an investigation to determine if Hoffman was willing to act as an agent for a foreign government and commit espionage against the United States by divulging classified information.  As part of this investigation, undercover FBI agents posing as operatives of the Russian Federation contacted Hoffman seeking defense information.  In a series of responsive emails and other communications, Hoffman advised that he looked forward to “renewing [a] friendship” with his purported Russian contact, was “willing to develop a mutual trust,” and wanted compensation for his activities in the form of job assistance or payments based upon the risk and effort involved.  Hoffman also emphasized, however, that the need for “security [was] paramount” and suggested they communicate by physical, rather than unsecure electronic means.

In accordance with this request, undercover agents posed a series of questions to Hoffman and directed, if he chose to reply, that he should signal his willingness to do so by means of a coded reply and then leave his answers on a pre-arranged date in the hollow at the base of a tree at a dead drop site located in Virginia Beach, Virginia.  On three occasions in September and October 2012, Hoffman did just that and filled the drop site with encrypted thumb drives containing answers to the questions posed to him by persons he believed to be Russian agents.  In his answers, Hoffman supplied, among other things, national defense information classified at the levels of secret and top secret/sensitive compartmented information.  Following these disclosures, FBI and NCIS agents arrested Hoffman on December 6, 2012 and the Court ordered him detained.

This case was investigated by the FBI and NCIS.  Assistant U.S. Attorneys Robert J. Krask and Alan M. Salsbury, and Trial Attorney Heather M. Schmidt of the Counterespionage Section of the Justice Department’s National Security 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.

NEWPORT NEWS, Va. – Ryan Fultz, 33, of Newport News, Va., was convicted today by a federal jury of possessing and discharging a firearm during a drug trafficking crime, possession with intent to distribute cocaine, and felon in possession of a firearm.

            Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, Royce E. Curtin, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, and, Terry L. Sult Hampton Police Chief, made the announcement after the verdict was accepted by United States District Judge Henry C. Morgan, Jr.

            Fultz was indicted on March 13, 2013 on charges of possession with intent to distribute cocaine base, commonly known as “crack” cocaine, possession, brandishing and discharging a firearm during a drug trafficking crime, and felon in possession of a firearm.

            According to court records, and evidence at trial, on December 27, 2011, Fultz was present during a planned drug deal in the Wal Mart parking lot located at Cunningham Drive, Hampton, Va.  Fultz provided back-up to a drug dealer and when a dispute arose, he participated in a shootout with two other individuals. Fultz discharged a Bushmaster AR-15 high powered rifle during the shooting in which more than 30 shots were exchanged as evidenced by shell casings recovered at the scene.  Fultz is the third participant federally prosecuted as a result of this incident. Fultz faces a minimum of ten years on his firearm conviction but due to his status as a career criminal, he faces a maximum sentence of life in prison when he is sentenced on  May 22, 2014.

            This case was investigated by the FBI Safe Streets Task Force, Hampton Police Division and ATF’s Washington Field Division. Special Assistant United States Attorney Timothy R. Murphy 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 used brutal tactics to victimize multiple women and girls into prostitution

ALEXANDRIA, Va. – Taleek Sherrod Swinney, also known as “Kash da Pimp,” age 26, of Jamaica Queens, New York, was sentenced today to 294 months in prison, followed by 20 years of supervised release, for operating a sex trafficking ring using violence, force, and threats to victimize multiple women and girls.  Swinney also was ordered to pay to the victims over $500,000 in restitution.

Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Scot R. Rittenberg, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), Washington; and Stafford County Sherriff Charles E. Jett, made the announcement after sentencing by United States District Judge Leonie M. Brinkema.

“Swinney was one of the most violent sex traffickers ever found in the Eastern District of Virginia,” said Acting U.S. Attorney Boente.  “My office will continue working to bring to justice sex traffickers who use violence to prey upon vulnerable women, and I thank our partners at Homeland Security Investigations and the Stafford County Sheriff’s Office for their commitment to this issue.”

“This sentencing marks the end of a life of misery inflicted on the victims of Swinney’s heinous sex trafficking operation.  Swinney will be held accountable for his victimization and exploitation of these vulnerable women,” said Scot R. Rittenberg, Acting Special Agent in Charge, HSI Washington.

“Stafford County Sheriff’s Office Deputies have received extensive training in the signs and indicators of sex trafficking,” said Stafford County Sheriff Charles Jett.  “This one case clearly illustrates that a strong partnership with law enforcement agencies nationwide, both federal and local, can bring violent criminals such as Swinney to justice.”

On November 4, 2013, Swinney pleaded guilty to one count of sex trafficking.  According to court documents, Swinney has been prostituting women since at least 2006.  He started in New York City, but later sex trafficked women and girls in multiple states along the East Coast from Connecticut to Florida, including in Virginia, Maryland, and Washington.  As part of his operation, Swinney utilized the website Backpage.com to advertise the women and obtain commercial sex customers.  At least one of his victims was a juvenile when Swinney began prostituting her.

Swinney required the women he prostituted to give him all of the money that they earned.  Swinney frequently set a quota for the women, and those who failed to meet the quota were not allowed to eat.
As detailed in the statement of facts entered at Swinney’s plea, Swinney’s violence included beating one of his victims almost daily.  On one occasion, Swinney used a metal rod to beat this victim, stopped to film the victim naked and bleeding, and then continued beating her.  During this beating, Swinney fractured the victim’s nose and jaw.  Swinney later showed this video to other pimps, including a co-conspirator known as “Prince Charming.”

Swinney often would beat victims in the presence of the other women that he was prostituting as a means of instilling fear in all of them.  In one instance, Swinney lacerated a victim’s face and ear with a box cutter.  When another victim became pregnant, Swinney forced the woman to obtain an abortion.  In another instance, when one of Swinney’s victims refused to get out of his vehicle and walk the streets to obtain customers, Swinney threw her out of the moving vehicle.  Later, when Swinney found out that one of the victims was cooperating with the government, he threatened her and her family with violence.

This case was investigated by HSI Washington and the Stafford County Sheriff’s Office, with assistance from HSI New York and the New York Police Department.  Assistant United States Attorney Michael J. Frank 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. – David Karl Becker, 24, of Norfolk, Va., pleaded guilty today to theft of government property.

Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Charles T. May Jr., the Naval Criminal Investigative Service (NCIS) Acting Executive Assistant Director for Atlantic Operations; and Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after Becker’s plea was accepted today by United States Magistrate Judge Lawrence R. Leonard. 

Becker was indicted on December 20, 2013 by a federal grand jury on charges of theft of government property, sale of stolen ammunition, and sale of stolen explosives.  Becker is scheduled to be sentenced on May 9, 2014.         

According to a statement of facts filed with the plea agreement, Becker, while an active duty Navy SEAL stationed in Virginia Beach, Virginia, was attempting to sell military property through an outdoor equipment auction website.  NCIS agents observed Becker listing military M18 smoke grenades for sale online.  On November 20, 2013, an undercover agent met Becker and purchased two M18 smoke grenades, which were explosive material under federal law and the property of the United States Navy.  A second purchase was arranged for November 25, 2013 at Becker’s residence.  That day, Becker offered to sell the undercover agent numerous firearms and items of military equipment.  The undercover agent purchased two Special Forces grade gas masks and 200 rounds of 5.56 NATO ammunition from Becker.  Everything purchased was property of the United States, taken by Becker from his Navy command.

The case was investigated by the Naval Criminal Investigative Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.  Special Assistant United States Attorney Christopher A. George 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.

NEWPORT NEWS, Va. – Tayvonna Licorish, 26, of Newport News was sentenced today to thirty-three months in prison for her part in the 2008 murder of Jonte Terry, in the K-mart parking lot located at Oriana Drive in Newport News.

            Dana J. Boente, Acting 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 United States District Judge Arenda L. Wright Allen.

            Licorish was charged on January 16, 2013, in a superseding indictment with accessory after the fact and misprision of a felony.  Her boyfriend, Aronte Jarvis was indicted on October 10, 2012 on charges of murder in aid of racketeering activity, discharge of a firearm during a crime of violence, murder with a firearm and drug conspiracy. Jarvis was sentenced to life in prison on September 20, 2013.  Licorish pled guilty on October 21, 2013 to misprision of a felony.

According to court records, Jarvis was a member of a criminal organization known as “Thug Relations,” operating in the Aqueduct Apartments, St. Michael’s Apartments, Warwick Lawns, Warwick Town Homes, Heritage Trace Apartments, Mariner’s Landing Apartments, Sharon Drive and the Savage Drive areas of Newport News.  The defendant and others established the power and prestige of the gang through violence, including the murder of Jonte Terry on February 3, 2008.  Terry, 22, was shot in the K-mart parking lot located at Oriana Drive in Newport News.  Licorish was with Jarvis and their child at the time of the shooting and witnesses told agents that Licorish was driving the car as the victim tried to flee. Following the murder Jarvis, accompanied by Licorish, provided the black pistol used in the murder to an associate gang member who later disposed of it in an effort to hide the weapon from law enforcement officers. Licorish admitted to a number of witnesses that she was present when Jarvis shot Jonte Terry multiple times. 

            This case was investigated by the Federal Bureau of Investigation, with the assistance of the Newport News Police Department and the Virginia State Police.  Assistant United States Attorneys Howard J. Zlotnick and 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.

NORFOLK, Va. – Marcus Warrick, 29, of Virginia Beach, Va., was convicted today by a federal jury on six counts of receipt of child pornography and one count of possession of child pornography.

Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia and Scot R. Rittenberg, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), Washington, made the announcement after the verdicts were accepted by United States District Judge Mark S. Davis.  Warrick faces five years minimum and 20 years maximum in prison for each count when he is sentenced on May 8, 2014.

Warrick was indicted on December 6, 2012 by a federal grand jury.  According to court records and evidence at trial,HSI executed a search warrant and seized his computer on November 8, 2013.   HSI found more than 400 videos and images of child pornography on his computer.  The investigation revealed that he installed ARES on his computer and, using search terms, actively sought out images of child pornography.

This case was investigated by U.S. Immigration and Customs Enforcement, Homeland Security Investigations.  Assistant United States Attorneys Randy Stoker and Elizabeth Yusi are prosecuting the case on behalf of the United States.

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

A copy of this press release may be found on the website of the 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. – Jacquis Depree Nelson, 32, of Atlanta, Georgia, pleaded guilty today to conspiracy to commit bank fraud and aggravated identity theft.

Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; and William G. Frantzen, Special Agent in Charge of the United States Secret Service’s Richmond Field Office, made the announcement after the plea was accepted by United States Magistrate Judge David J. Novak.

Nelson was indicted on November 5, 2013, by a federal grand jury on conspiracy to commit bank fraud and aggravated identity theft charges.  Nelson faces a maximum penalty of thirty years’ imprisonment for the bank fraud conspiracy offense and a mandatory consecutive sentence of two years’ imprisonment for the aggravated identity theft offense when he is sentenced on May 1, 2014, by Senior United States District Judge Robert E. Payne. 

In a statement of facts filed with the plea agreement, Nelson admitted to participating in a conspiracy involving the unauthorized withdrawal of hundreds of thousands of dollars from accounts held at Wells Fargo Bank.  Members of the conspiracy created false forms of identification for several real Wells Fargo accountholders, using personal identifying information obtained without lawful authority.  Nelson and his co-conspirators traveled from Georgia and other locations to bank branches in Virginia and South Carolina, where they posed as the individual accountholders.  Using customer account information and the false forms of identification, Nelson and his co-conspirators withdrew over $260,000 from numerous Wells Fargo accounts between November 2012 and January 2013.  The co-conspirators divided the stolen proceeds among themselves following the withdrawals.

Nelson’s co-conspirator, Anthony Romey Carter, of Elk Grove, California, previously pled guilty and was sentenced on August 8, 2013, to 61 months’ imprisonment for his role in the scheme. 

This case was investigated by the United States Secret Service.  Assistant United States Attorneys Dominick S. Gerace and Michael Gill are prosecuting the case on behalf of the United States.

A copy of this press release may be found on the website of the 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 bribed DMV employee to process applications for over 100 illegal aliens

ALEXANDRIA, Va. – Jose Calderon, 42, of Sterling, Va., was sentenced today to 30 months in prison, followed by three years of supervised release, for engaging in a bribery scheme that resulted in the issuance of driver’s licenses to illegal aliens.

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 sentencing by United States District Judge Leonie M. Brinkema.

“Schemes such as this, trading cash for DMV documents, undermine the enforcement of our immigration laws and potentially threaten public safety,” said Acting U.S. Attorney Boente.  “The U.S. Attorney’s Office is committed to combatting public corruption at all levels of government, and we thank our partners at the FBI for their commitment to this issue.”

“Allegations of public corruption will not be overlooked or downplayed, and those who take part in such activity will be held responsible for their crimes,” said Assistant Director in Charge Parlave.  “Citizens who observe behavior like this are encouraged to call the FBI.”

On Nov. 6, 2013, Calderon pleaded guilty to conspiracy to bribe an employee at Virginia’s Department of Motor Vehicles (DMV), a state agency that receives federal funding.

According to court documents, from September 2007 to July 2010, Calderon solicited cash payments from illegal aliens in return for helping them secure DMV documents for which they were not eligible.  After Calderon collected cash from ineligible applicants, he provided a DMV employee, Maria Cavallaro, 45, of Springfield, Va., a portion of the money to induce her to falsely verify that the ineligible applicants had produced documentation establishing their eligibility for the requested DMV documents.  As part of this scheme, Calderon brought more than 100 ineligible applicants to the DMV Service Center located at the Fair Oaks Mall to obtain driver’s licenses, learner’s permits and identification cards.

Maria Cavallaro pleaded guilty to participating in the conspiracy and also was sentenced during court proceedings today.  A third defendant, Noemi Barboza, 42, of Sterling, Va., previously entered a guilty plea to the bribery conspiracy, and she will be sentenced on Feb. 14, 2014.

This case was investigated by the Federal Bureau of Investigation with assistance from the Department of Homeland Security, Homeland Security Investigations.  Assistant United States Attorney Rebeca H. Bellows prosecuted the case on behalf of the United States.

Any person who believes they may have information regarding public corruption in the northern Virginia area is encouraged to contact the FBI’s Northern Virginia Public Corruption Hotline at 703-686-6225 or 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.

Defendant sold pills primarily to high school students and recent graduates

ALEXANDRIA, Va. – George Washington Crane V, 48, of Leesburg, Va., was sentenced today to 12 years in prison, followed by three years of supervised release, for conspiracy to distribute Oxycodone.

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 Michael L. Chapman, Loudoun County Sheriff, made the announcement after sentencing by United States District Judge Liam O’Grady.

“We have seen a disturbing increase in the use of opiates and heroin by young people across Eastern Virginia,” said Acting U.S. Attorney Boente.  “Crane’s decision to target young people and traffic Oxycodone, an extremely dangerous drug, warrants the 12-year sentence.”

“Drug suppliers, like Crane, ply their illegal trade in our neighborhoods and threaten the safety, health and well-being of citizens,” said Assistant Director Parlave. “The FBI and our law enforcement partners are focused on stopping the movement and illegal sale of controlled prescription drugs and will continue to diligently investigate those who sell them to protect our citizens from the illegal use of these dangerously addictive painkillers.”

“It is gratifying to see Crane held accountable for both drug distribution and the tragic and senseless death of William Huff.  I thank our partners at the FBI and the U.S. Attorney’s Office for working with the Loudoun County Sheriff’s Office to bring this case to a successful conclusion,” said Sheriff Mike Chapman.

Crane pleaded guilty to conspiracy to distribute Oxycodone on Sept. 11, 2013.  According to court documents, between 2008 and 2011, Crane purchased Oxycodone several times each week from sources on the street in Washington, D.C. and Baltimore, Md.  Crane then brought the Oxycodone to Leesburg, Va. and distributed the pills primarily to high school students and recent graduates.  Crane sold Oxycodone to multiple customers daily from his residence and car.

According to the statement of facts filed at the time of Crane’s guilty plea, Crane distributed Oxycodone on Aug. 7, 2010, to a conspirator who later provided it to William Huff.  Huff, who was 20 years old, died at his home in Leesburg on Aug. 8, 2010, as a result of injecting the Oxycodone that Crane distributed.

This case was investigated by the FBI’s Washington Field Office and the Loudoun County Sheriff’s Office.  Assistant United States Attorney Adam B. Schwartz 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.

NEWPORT NEWS, Va. – Four defendants recently pleaded guilty in federal court to charges stemming from a wide-ranging scheme to defraud UniRush, LLC, a provider of prepaid stored value cards.  A total of eight defendants thus far have entered guilty pleas as part of this investigation.

Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; William G. 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; and Richard W. Myers, Chief of Newport News Police, made the announcement after the last plea was accepted today by United States District Judge Raymond A. Jackson.

The four defendants who recently entered guilty pleas in this matter were Jamal Greene, 27, Knhesha Strickland, 27, Almira Dobson, 25, and Sam McGill, 36.  Greene and Strickland reside in Hampton, Va., and Dobson and McGill reside in Newport News, Va.

Green pleaded guilty on Jan. 23, 2014, Dobson and McGill pleaded guilty on Jan. 28, and Strickland pleaded guilty today.  All four defendants pleaded guilty to conspiracy to commit mail and wire fraud, which carries a maximum penalty of twenty years in prison.  Greene also pleaded guilty to a charge of aggravated identity theft, which carries an additional mandatory term of two years in prison.

According to court records, from at least October 2010 through March 2012, the defendants and others engaged in a fraudulent scheme to obtain funds from UniRush, LLC, which does business as UniRush Financial Services.  UniRush provides prepaid Visa debit cards in the United States (referred to as Visa “RushCards”), which are used to deposit money, withdraw cash, make purchases, shop online and pay bills.  Through its RushCard program, UniRush allows customers to “reload” the RushCards in a number of ways, including by direct deposit, at MoneyGram locations and through various online means.

Green Dot Corporation offers prepaid debit or credit cards that work similarly to a RushCard.  Green Dot also offers a product called a “MoneyPak” that can be purchased for a set amount (ranging from $20 to $500 at most retailers and up to $1,000 at Walmart stores).  Individuals who purchase RushCards can use Green Dot MoneyPaks to “reload” money onto their RushCard.

Around March 2012, the Peninsula area of the Eastern District of Virginia experienced a surge in the purchase of Green Dot MoneyPaks from local retailers, including Walgreen’s, Rite Aid and 7-Eleven stores.  Around April 2012, UniRush detected an error in its computer accounting system that allowed customers to make multiple fraudulent loads onto their RushCards using the same MoneyPak.  In this way, certain customers obtained double the value of their MoneyPak.

Around October 2010, defendant Jamal Greene learned online about the fraudulent uploading scheme, and he then began conducting the scheme with others.  From around October 2010 through March 2012, Greene and his confederates made hundreds of fraudulent uploads to their RushCard accounts by using Green Dot MoneyPaks.  The transaction activity also revealed fund transfers between the defendants’ RushCard accounts and the accounts of other individuals who also engaged in the fraudulent uploading scheme.

The total loss to UniRush resulting from the fraudulent conduct was approximately $5.5 million from 2010 through March 2012, with $4.5 million of those losses occurring from December 2011 through March 2012.

Jamal Greene is scheduled to be sentenced on June 2, Almira Dobson is scheduled to be sentenced on June 9, Sam McGill is scheduled to be sentenced on June 10, and Knhesha Strickland is scheduled to be sentenced on June 11, 2014.

In addition to these four defendants, four other individuals—Andre Banks, Steven Banks, Erika Greene and Javon Whitaker—previously were convicted and sentenced in 2013 for their role in the RushCard scheme.

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

The Newport News Financial Crimes Task Force is a partnership between local, state and federal law enforcement to combat financial crimes on the Virginia Peninsula.  Created in July 2010, the task force is comprised of agents from the U.S. Postal Inspection Service, the U.S. Secret Service, the FBI, IRS-CID and other federal agencies, along with dedicated officers from the police departments of Newport News, Hampton, James City County, York County and Gloucester.  Partners of the task force include Tidewater area financial institutions, credit card companies and the National White Collar Crime Center.  Financial crimes with a federal nexus are brought to the attention of the task force by local law enforcement, and members of the task force investigate and refer appropriate cases to the U.S. Attorney’s Office for federal prosecution.

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. – Vernon Matthews, 42, of Chesterfield, Virginia, was sentenced to 48 months’ in prison today for his role in defrauding military personnel and their dependents and stealing more than $200,000 through an investment fraud scheme.  Matthews previously pleaded guilty to Mail Fraud on September 3, 2013.  

            Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Jeffrey C. Mazanec, Special Agent in Charge of the FBI’s Richmond Field office; and United States Postal Inspection Service, Richmond Inspector in Charge Keith Fixel made the announcement after the sentence was imposed today by United States District Judge Henry E. Hudson.  

In connection with his guilty plea, Matthews admitted to operating First Capital Group (FCG), located at 4624 Pembroke Boulevard, Suite 102, Virginia Beach, Virginia.  He solicited United States Military personnel and their dependents to make investments with FCG, with misrepresentations about how the investment funds would be used, the security of the investments, and the promised amount of returns, which he represented ranged from 4% to 300%.  The defendant also misrepresented his affiliation with reputable investment companies and funds, including HB Group and American Funds.  Matthews did not have any relationship with HB Group or American Funds, and no investor funds were provided to either of those companies or any other investment-type company.  Instead, the defendant misappropriated the investors’ money, causing it to be used for his own personal use and benefit and to the investors’ detriment.  

The charged mail fraud centered around the defendant’s acts in defrauding investor A.G., a graduate of the U.S. Naval Academy who was attending medical school.  Through various communications, Matthews led A.G. to believe her investment monies would be transferred to a mutual fund with a guaranteed 7.27% rate of return.  That promised return was later revised to a higher amount (10%-12%), provided A.G. invested additional monies with the defendant.  A.G., in turn, invested the following amounts with FCG: $20,000 (12/21/2010); $3,500 (5/18/2012); and $6,000 (10/20/12).  Although Matthews had promised that these funds would be put in an investment fund, he did not transfer any of A.G.’s money to that promised destination.  When A.G. later tried to withdraw her investment funds, the defendant delayed returning her funds and later mailed her a refund check in the amount of $32,328.55.  Upon receipt of the mailing, A.G. attempted to cash the check, but it bounced. 

Overall, from about July 2010 until about May 2013, Matthews received over $235,600 in funds from the victim investors.  The defendant did not invest any of those monies as promised and used the funds for his own benefit and to repay other investors.  Judge Hudson ordered the defendant to pay the outstanding balance of $204,465 in restitution to the victim investors. 

The investigation was jointly coordinated by the Richmond office of the FBI and the Richmond office of the United States Postal Inspection Service.  Assistant United States Attorney Michael Gill prosecuted the case on behalf of the United States.

This investigation has been coordinated by the Virginia Financial and Securities Fraud Task Force, an unprecedented partnership between criminal investigators and civil regulators to investigate and prosecute complex financial fraud cases in the nation and in Virginia.  The task force is comprised of several federal and state agencies, including the Virginia Attorney General’s Office.  The task force is an investigative arm of the President’s Financial Fraud Enforcement Task Force (FFETF), an interagency national task force.

The FFETF was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.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.

NORFOLK, Va. – Patrick Ryan Hudson, 23, of Chesapeake, Va., was sentenced today to 97 months in prison, followed by 180 months of supervised release for possession of child pornography.

Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Charles T. May Jr., the Naval Criminal Investigative Service (NCIS) Acting Executive Assistant Director for Atlantic Operations; and Acting Special Agent in Charge Scot R. Rittenberg of U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), Washington, made the announcement after sentencing by Chief United States District Judge Rebecca Beach Smith.

Hudson pleaded guilty to a criminal information on October 29, 2013.  According to court documents, in late 2012 Hudson was an active duty Navy sailor stationed in Hampton Roads.  Undercover agents of Homeland Security Investigations discovered Hudson sharing child pornography through an online peer-to-peer file sharing service.  The Naval Criminal Investigative Service also downloaded contraband images from Hudson’s computer.  NCIS and HSI special agents executed a federal search warrant at Hudson’s Chesapeake residence and recovered a computer belonging to Hudson containing hundreds of videos and images of child pornography.  Hudson admitted to investigators that he had amassed a collection of child pornography on his computer through a peer-to-peer file sharing program.

The case was investigated by the Naval Criminal Investigative Service and Homeland Security Investigations.  The Chesapeake Police Department assisted with the search warrant.  Special Assistant United States Attorney Christopher A. George 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. –Thomas B. Peeler, 47, of Washington, D.C., was sentenced today to 240 months in prison, followed by three years of supervised release, for the armed robberies of a BB&T bank in Alexandria and a GameStop store in Clementon, New Jersey. He was also ordered to pay $63,045.88 in restitution.

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

Peeler pleaded guilty on November 7, 2014.  According to court documents, within nine months of being released from a 10 year federal prison sentence for a prior bank robbery, Peeler committed two armed robberies in Alexandria and one armed robbery in Clementon, New Jersey. At sentencing, the court also noted that the defendant committed three additional robberies in New Jersey during this period of time.

As part of his plea agreement, the defendant admitted that he brandished a firearm and threatened to harm or kill employees during his robbery of BB&T bank on April 22, 2010. The defendant also admitted that he displayed a firearm during his robbery of GameStop on May 7, 2010. Peeler was ultimately connected to both robberies after two citizens observed Peeler walking to a getaway car outside the BB&T bank after the robbery and noted the vehicle’s license plate.

This case was investigated by the FBI’s Washington Field Office’s Violent Crimes Task Force with assistance from WFO's Evidence Response Team, the FBI Laboratory’s Forensic Audio Video Image Analysis Unit, and the FBI Laboratory’s Chemistry Unit. Special Assistant U.S. Attorney Robert J. Heberle and Assistant U.S. Attorney Rebeca H. Bellows prosecuted the case on behalf of the United States.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-288.

RICHMOND, Va. – Carlos McClammy, 20, of Virginia Beach, Va., pleaded guilty today to conspiracy to obstruct, delay and affect commerce by robbery; aiding and abetting bank robbery; brandishing a firearm in furtherance of a crime of violence; and discharging a firearm in furtherance of a crime of violence. 

            Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Bruce Jones, Northampton County Commonwealth Attorney; William W. Davenport, Chesterfield County Commonwealth Attorney; Lyndia P. Ramsey, Sussex County Commonwealth Attorney; and Harvey L. Bryant, City of Virginia Beach Commonwealth Attorney, made the announcement after the plea was accepted by United States District Judge Henry E. Hudson.   

            McClammy was charged on January 16, 2014, in a Criminal Information with conspiracy to obstruct, delay and affect commerce by robbery; aiding and abetting bank robbery; brandishing a firearm in furtherance of a crime of violence; and discharging a firearm in furtherance of a crime of violence.  He faces a maximum penalty of life imprisonment when he is sentenced on April 29, 2014. 

            In a statement of facts filed with his plea agreement, McClammy admitted to participating in six armed bank robberies in Virginia.  These include 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 of the Chartway Federal Credit Union in Virginia Beach, McClammy discharged his firearm while fleeing the scene of the bank. 

            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 Attorney Erik S. Siebert is prosecuting the case on behalf of the United States.

A copy of this press release may be found on the website of the 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. – Kevin Lee Bennett, 49, of Richmond, Virginia, was sentenced today to 240 months in prison, followed by 2 years of supervised release for possession of a firearm in furtherance of a drug trafficking crime.

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

Bennett pled guilty on October 27, 2014.  According to court documents, on or about February 21, 2014, Richmond Police Department officers executed a search warrant at Bennett’s Richmond residence.  They found in the kitchen approximately fifteen grams of cocaine base, two digital scales, and several plastic baggies of the type used to distribute crack cocaine.  Additionally, the officers found three different firearms, one of which was in the bed with Bennett and his wife at the time the officers entered the residence.  The other two were in the kitchen where officers found the narcotics.  One of these two firearms was in a safe in the kitchen for which Bennett had the key.  The officers also recovered $6,080 from the safe.

In a post-arrest interview, Bennett admitted selling narcotics over the prior two years.  He also admitted he intended to sell the narcotics the officers found in his residence had accumulated the $6,080 that officers found in his safe over a period of time for selling narcotics. 
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Richmond III Field Office, and the Richmond Police Department Special Investigations Division-Narcotics Unit. Assistant U.S. Attorney Stephen E. Anthony is prosecuting the case on behalf of the United States.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14-CR-144

 

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ALEXANDRIA, Va. – James Glenn Warner, 44, of Manassas, Virginia, was arrested today and charged with soliciting bribes from executives working for a private company on a contract that Warner managed out of the Pentagon.  
  
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; Robert E. Craig, Special Agent in Charge, Mid Atlantic Field Office, Defense Criminal Investigative Service; and Frank Robey, Director, Major Procurement Fraud Unit, 701st Military Police Group, U.S. Army Criminal Investigation Command, made the announcement after Warner’s initial appearance before U.S. Magistrate Judge John F. Anderson.  

Warner faces a maximum penalty of 15 years in prison and up to a $1.5 million fine, if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. Criminal complaints are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.

According to the affidavit in support of the criminal complaint, in October 2014, Warner made arrangements to meet with two executives of Company A, a Virginia-based company which held a five-year contract with the Department of the Army worth up to $120 million.  At the meeting, which took place at a restaurant located in the Pentagon Centre in Arlington, Virginia, Warner instructed the two executives to communicate with him by typing messages into his cellular telephone, which was passed around the table.  As the affidavit alleges, Warner then passed a menu to the two executives.  Inside the plastic covering for the center section of the menu was a piece of paper which outlined a bribe and extortion solicitation, suggesting that if Company A paid $500,000 it would secure a contract renewal from the Department of the Army and that alleged damaging information about Company A would be destroyed.  According to the affidavit, the Company A executives declined Warner’s solicitation, reported the conduct and began cooperating with law enforcement agents.  Acting at the direction of law enforcement, a Company A executive then met with Warner on four subsequent occasions, paying Warner a total of $50,000 cash bribes out of the total $500,000 solicited by Warner.

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

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.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-mj-39.

 

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RICHMOND, Va. – Dane Scott Mihlon, Jr., 26, of King George, Virginia, was sentenced today to 10 years in prison, followed by 15 years of supervised release for using the internet on his cellphone to entice at least 8 minors to produce child pornography.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and FBI SAC Adam S. Lee, made the announcement after sentencing by U.S. District Judge John A. Gibney.

Mihlon pled guilty on October 2, 2014, to coercion and enticement of a minor, in violation of 18 U.S.C. § 2422(b).  According to court documents, he admitted using a variety of applications on his cellphone to entice 8 juvenile females, ranging from 12 to 16 years old, located across the country to produce sexually explicit pictures via the internet.  On one occasion, Mihlon enticed a 15 year old juvenile victim living in Oregon to produce at least five images of her naked, with one image depicting her engaged in a sex act.

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

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14cr98-JAG.

 

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RICHMOND, Va. – Dane Scott Mihlon, Jr., 26, of King George, Virginia, was sentenced today to 10 years in prison, followed by 15 years of supervised release for using the internet on his cellphone to entice at least 8 minors to produce child pornography.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and FBI SAC Adam S. Lee, made the announcement after sentencing by U.S. District Judge John A. Gibney.

Mihlon pled guilty on October 2, 2014, to coercion and enticement of a minor, in violation of 18 U.S.C. § 2422(b).  According to court documents, he admitted using a variety of applications on his cellphone to entice 8 juvenile females, ranging from 12 to 16 years old, located across the country to produce sexually explicit pictures via the internet.  On one occasion, Mihlon enticed a 15 year old juvenile victim living in Oregon to produce at least five images of her naked, with one image depicting her engaged in a sex act.

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

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14cr98-JAG.

 

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ALEXANDRIA, Va. – Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, announced today that U.S. District Judge Leonie M. Brinkema has put a permanent stop to the advertising, marketing, or sale of the spyware application (or “app”) called StealthGenie. The court preliminarily shut down the app in September, when it issued a temporary restraining order.  The court has now permanently enjoined use of and access to the app.  

Before it was shut down the StealthGenie app could be installed on a variety of smartphones and operated without the user’s knowledge.  It allowed the purchaser of StealthGenie software to: monitor the smartphone user’s incoming and outgoing phone calls; intercept calls in real time without the knowledge of the smartphone user; monitor the smartphone user’s email and text messages; and activate the phone without the user’s knowledge so conversations within earshot of the smartphone could be monitored.  All of this could be done without the knowledge of the smartphone user.

In September, the United States filed a civil lawsuit against app creator Hammad Akbar, of Lahore, Pakistan, asking the court to order that the app be shut down immediately, temporarily, and then permanently.  Mr. Akbar was arrested in Los Angeles, California, on September 27, 2014, for violating a federal law that prohibits the manufacturing, sale, or possession of any device whose primary purpose is the surreptitious interception of wire, oral, or electronic communications.  In November 2014, Akbar pled guilty to related charges in the Eastern District of Virginia.  The law also allows the United States to ask a court to prohibit the production, use, or possession of the device. 

The court’s order is the result of a coordinated effort by Assistant U.S. Attorneys Kevin Mikolashek and Jay Prabhu of the U.S. Attorney’s Office for the Eastern District of Virginia; William Hall of the United States Department of Justice Criminal Division; and the Federal Bureau of Investigation.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14cv1273 and 1:14cr276.

 

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Printer Friendly Disclosed classified information about a clandestine operational program designed to undermine Iran’s nuclear weapons program

ALEXANDRIA, Va. – Jeffrey A. Sterling, 47, of O’Fallon, Missouri, was convicted today by a federal jury on charges of disclosing national defense information and obstructing justice.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Attorney General Eric Holder; and FBI Director James Comey made the announcement after the verdict was accepted by U.S. District Judge Leonie M. Brinkema.

“This is a just and appropriate outcome,” said Attorney General Holder.  “The defendant’s unauthorized disclosures of classified information compromised operations undertaken in defense of America’s national security.  The disclosures placed lives at risk.  And they constituted an egregious breach of the public trust by someone who had sworn to uphold it. As this verdict proves, it is possible to fully prosecute unauthorized disclosures that inflict harm upon our national security without interfering with journalists' ability to do their jobs.  And I want to thank the investigators, prosecutors, and support staff who made this outcome possible for their relentless efforts in advancing a complex case that spanned multiple years.”

"He violated his sworn duty to protect our nation's secrets and he betrayed our country,” said FBI Director Comey. “The FBI will continue to pursue these cases vigorously."

“Over 10 years ago a disgruntled former CIA employee disclosed extremely sensitive classified information to a reporter who used the information in a book,” said U.S. Attorney Boente. “That classified information was critical to our national defense, and releasing it was illegal and went against Mr. Sterling’s professional commitments to the CIA. Mr. Sterling’s vindictive and careless choices ultimately led us here today and to this unanimous verdict. I would like to thank the trial team and our partners at the FBI’s Washington Field Office and the Central Intelligence Agency for their hard work and commitment to this case.”

Sterling was indicted on Dec. 22, 2010, arrested on Jan 6, 2011, and will be sentenced on April 24, 2015.

According to court records and evidence at trial, Sterling was employed by the CIA from May 1993 to January 2002.  From November 1998 through May 2000, he was assigned to a classified clandestine operational program designed to undermine the Iranian nuclear weapons program.  He was also the operations officer assigned to handle a human asset associated with that program, a person identified at trial as Merlin.  Sterling was reassigned in May 2000, at which time he was no longer authorized to receive or possess classified documents concerning the program or the individual.

In connection with his employment, Sterling, who is a lawyer, signed various security, secrecy and non-disclosure agreements in which he agreed never to disclose classified information to unauthorized persons, acknowledged that classified information was the property of the CIA, and also acknowledged that the unauthorized disclosure of classified information could constitute a criminal offense.  These agreements also set forth the proper procedures to follow if Sterling had concerns that the CIA had engaged in any “unlawful or improper” conduct that implicated classified information.  These procedures permit such concerns to be addressed while still protecting the classified nature of the information.  The media was not an authorized party to receive such classified information.

In August 2000, Sterling pursued administrative and civil actions against the CIA.  Evidence at trial showed that Sterling, in retaliation for the CIA’s refusal to settle those actions on terms favorable to him, disclosed information concerning the classified operational program and the human asset to a New York Times reporter working on an unpublished article in early 2003 and a book the reporter published in January 2006.  Sterling’s civil and administrative claims were ultimately dismissed by the court.

Evidence demonstrated that in February and March 2003, Sterling made various telephone calls to the reporter’s residence and e-mailed a newspaper article about the weapons capabilities of a certain country that was within Sterling’s previous clandestine operational assignment.  While the possible newspaper article containing the classified information Sterling provided was ultimately not published in 2003, evidence showed that Sterling and the reporter remained in touch from December 2003 through November 2005 via telephone and e-mail.  In January 2006, the reporter published a book that contained classified information about the program and the human asset.

Evidence at trial showed that Sterling was aware of a grand jury investigation into the matter by June 2006 when he was served a grand jury subpoena for documents relating to the reporter’s book.  Nevertheless, between April and July 2006, Sterling deleted the e-mail containing the classified information he had sent from his account in an effort to obstruct the investigation.

This case was investigated by the FBI’s Washington Field Office with assistance in the arrest of the FBI’s St. Louis Field Office. Assistant U.S. Attorneys James L. Trump and Dennis Fitzpatrick, along with Trial Attorney Eric G. Olshan of the Criminal Division’s Public Integrity Section prosecuted the case on behalf of the United States.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:10-cr-485.

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NORFOLK, Va. – Festus Ighalo, 37, of Virginia Beach, Virginia, was sentenced today to 57 months in prison for conspiracy to defraud the government.

Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Thomas J. Kelly, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS-CI); and Trevor Nelson, Assistant Special Agent in Charge, Treasury Inspector General for Tax Administration (TIGTA), made the announcement after sentencing by United States District Judge Arenda Wright Allen.

Ighalo pleaded guilty on October 8, 2013.  According to court documents, Ighalo and his codefendant Emmanuel Effiong, both originally from Nigeria and now naturalized U.S. citizens, were formerly nurses aides at Sentara’s Virginia General Hospital in Virginia Beach.  They used their positions there to obtain Personally Identifiable Information (PII), such as dates of birth and social security numbers, from thousands of patients mostly located in the Tidewater area.  Then, with the help of others located elsewhere in the U.S. and Nigeria, that information was used to submit fraudulent federal tax returns with the Internal Revenue Service and receive tax refunds in the patients’ names.  Effiong was sentenced to 81 months for conspiracy and aggravated identity theft on January 10, 2014.

This case was investigated by IRS Criminal Investigation and the Treasury Inspector General for Tax Administration (TIGTA).  Assistant United States Attorney Elizabeth M. Yusi 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. – Stephanie Olean Chapman, 28, of Fairfax, Va., and Ronnie Pierre Holmes, 30, with no fixed address, were sentenced today to 132 and 168 months in prison, respectively, followed by five years of supervised release, for charges stemming from the prostitution of a 15-year-old girl throughout northern Virginia, Maryland and Washington, D.C.

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 sentencing by United States District Judge Liam O’Grady.

Holmes pleaded guilty on June 25, 2013 to a criminal information charging him with conspiracy to commit sex trafficking of a child.  Chapman was convicted by a federal jury on Oct. 17, 2013 of conspiracy to commit sex trafficking of a child, sex trafficking of a child, and interstate transportation of a minor for the purposes of prostitution.

According to court documents and evidence adduced at Chapman’s trial, between Feb. 27, 2013 and March 12, 2013, Chapman and her boyfriend, Holmes, met a 15-year-old girl and recruited her to be a prostitute for them.  During that time, Chapman and Holmes took sexually suggestive photographs of the girl, sent the photographs to potential customers, posted the photographs on Backpage.com, drove the girl to meet with customers at locations in Virginia, Maryland and the District of Columbia, and took half of the money paid to the girl after she engaged in sex with customers for money.

This case was investigated by the Federal Bureau of Investigation and the Fairfax County Police Department.  Special Assistant United States Attorney Stacey Luck and Assistant United States Attorney Michael J. Frank 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. – Matthew Vincent Deparasis, 30, of Virginia Beach, was sentenced today to 156 months in prison, followed by five years of supervised release for maintaining drug-involved premises and on firearm charges.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Karl C. Colder, Special Agent in Charge for Drug Enforcement Administration’s Washington Office, made the announcement after sentencing by U.S. District Judge Arenda L. Wright Allen.

Deparasis pled guilty on September 26, 2014. According to court documents, Deparasis and his twin brother, Nicholas, sold heroin, cocaine, crack cocaine, and firearms from various drug-involved premises, including an 11th Street apartment in Virginia Beach.  The Deparasis brothers used and maintained the various premises from February of 2010 to approximately May of 2014.

Nicholas Deparasis pled guilty on September 25, 2014 and was sentenced on January 21, 2015, to 96 months in prison on the drug conspiracy charge, and sentenced to an additional 60 months in prison for the charge of possessing a firearm in furtherance of, and using and carrying firearms during and in relation to, one or more drug trafficking crimes.    

This case was investigated by the Drug Enforcement Administration, with the assistance of the Virginia Beach Police Department. Assistant U.S. Attorney Kevin Comstock prosecuted the case on behalf of the United States. A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-85

 

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ALEXANDRIA, Va. – Padraic Collins, 46, of Fairfax, Va., was indicted today by a federal grand jury in the Eastern District of Virginia for production of child pornography after Collins allegedly was found to be in possession of child pornography videos while crossing the border into Canada.

            Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Scot R. Rittenberg, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), Washington, made the announcement after the grand jury returned the indictment to United States Magistrate Judge T. Rawles Jones, Jr.

            Collins faces a mandatory minimum of 15 years in prison and a maximum of 30 years in prison if convicted.

            According to court documents, HSI Washington received information from HSI Toronto regarding Collins, a Fairfax resident, at the Lansdowne, Canada Port of Entry.  Collins was arrested by the Canadian Border Services Agency for importing and possessing child pornography files on a handheld video camera and a laptop.  The videos allegedly show Collins engaging in sexual activity with an underage girl.  HSI Washington, in coordination with HSI Toronto and the Ottawa Provincial Police, determined the identity of the 11-year-old female in the videos.  The victim identified Collins as her abuser and confirmed the details of the sexual abuse, including that it took place in Springfield, Va.

            The investigation was conducted by HSI Washington, with assistance from HSI Toronto, HSI Buffalo, U.S. Customs and Border Protection, the Ottawa Provincial Police and the U.S. Marshals Service.  Special Assistant United States Attorney Alicia J. Yass, a Trial Attorney with the Child Exploitation and Obscenity Section of the U.S. Justice Department’s Criminal Division, 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.

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

            A copy of this press release may be found on the website of the 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 sold heroin that resulted in three overdose deaths in northern Virginia

ALEXANDRIA, Va. – Eugene Asomani Williams, also known as “Shine,” 35, of Washington, DC, pleaded guilty today to conspiracy to distribute one kilogram or more of heroin and to using and possessing a firearm during and in furtherance of drug trafficking.

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

Williams was indicted on November 21, 2013 by a federal grand jury on the charges to which he entered guilty pleas.  Williamsfaces a mandatory minimum term of 15 years of incarceration and a maximum penalty of life in prison when he is sentenced on April 18, 2014.

In a statement of facts filed with the plea agreement, Williams admitted to selling over one kilogram of heroin in the Washington metropolitan area since 2004.  Williams further admitted that heroin he distributed in 2012 and 2013 led to three overdose deaths in Virginia.  As detailed in the indictment and statement of facts, in January 2012, an Army Private stationed at Fort Belvoir died of an overdose after using heroin sold by the defendant.  In February 2012 and April 2013, two other individuals died as a result of using heroin sold by the defendant.

The defendant also admitted to regularly carrying a firearm in furtherance of his heroin trafficking activities.  The defendant stated that the firearm he used most recently was a .38 caliber revolver.  Additionally, DEA seized .45 caliber ammunition from the defendant’s home during the execution of a search warrant in September 2013.

This case was investigated by the DEA’s Washington Field Division, with assistance from the U.S. Army’s Criminal Investigation Division and the Fairfax County Police Department.  Assistant United States Attorneys Michael P. Ben’Ary and Julia K. Martinez 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. – Patricia Mae Huntt, 52, of Stafford, Virginia, was sentenced today to 36 months in prison, followed by three years of supervised release for conspiracy to distribute controlled substances. 
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; and Charles E. Jett, Stafford County Sheriff, made the announcement after sentencing by U.S. District Judge James C. Cacheris.

Huntt pleaded guilty on November 4, 2014.  According to court documents, Huntt is a former patient of Dr. Nibedita Mohanty, a Stafford, Virginia, medical doctor who was indicted on July 24, 2014, on charges of conspiracy to distribute controlled substances, distribution of controlled substances, aiding and abetting health care fraud, and aiding and abetting money laundering.  Mohanty is scheduled for a jury trial on February 24, 2015.

Beginning in January 2010, Huntt and other conspirators began seeing Dr. Mohanty to obtain large quantities of oxycodone and Dilaudid to distribute for profit.  Huntt admitted to selling approximately 3,600 oxycodone pills and 1,200 Dilaudid pills over the previous year.  Throughout the conspiracy Huntt was personally involved in the distribution of an amount of oxycodone and Dilaudid that is equivalent to at least 700 kilograms but less than 1,000 kilograms of marijuana. 

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

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-190.

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NEWPORT NEWS, Va. – Jeffrey Washington, 36, of New York, NY, was sentenced today to 175 months in prison, followed by five years of supervised release, for conspiracy to commit bank fraud and aggravated identity theft. The defendant was ordered to pay restitution in the amount of $254,995.71.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, made the announcement after sentencing by U.S. District Judge Arenda L. Wright Allen.

Washington plead guilty on August 28, 2014. According to court documents, Washington admitted his involvement in a multi-defendant ring of individuals that burglarized Wells Fargo mortgage offices throughout NY, NJ, CT and MD in 2012 -2013. The defendants stole over 1,800 mortgage files that were then used in a variety of bank customer impersonation and retail credit fraud schemes, targeting various banks and retailers.  Washington recruited individuals to go into banks, impersonate customers and remove funds via setting up business accounts and transferring funds from the accounts of bank customers. Washington and other defendants traveled from NY to EDVA on multiple occasions throughout 2012 and 2013.  Following the arrest of a co-defendant in August, 2013, the defendant continued to burglarize mortgage offices until his arrest in May, 2014. Washington was on probation at the time of the offense. Thus far, three defendants have pled guilty and a fourth remains pending trial.

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

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:14CR32.

 

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RICHMOND, Va. – A federal grand today returned a 14-count indictment against former Virginia Governor Robert F. McDonnell and former First Lady Maureen G. McDonnell for allegedly participating in a scheme to violate federal public corruption laws.

Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Mythili Raman, Acting Assistant Attorney General for the Justice Department’s Criminal Division; Jeffrey C. Mazanec, Special Agent in Charge of the FBI’s Richmond Field Office; Richard Weber, Chief of the Internal Revenue Service-Criminal Investigation (IRS-CI); and Colonel W. Steven Flaherty, Virginia State Police Superintendent, made the announcement.

The indictment, returned in the Eastern District of Virginia, charges Robert McDonnell and Maureen McDonnell, both 59 and of Glen Allen, Va., with one count of conspiracy to commit honest-services wire fraud; three counts of honest-services wire fraud; one count of conspiracy to obtain property under color of official right; six counts of obtaining property under color of official right; and one count of making false statements to a federal credit union.  Robert McDonnell is also charged with an additional count of making a false statement to a financial institution, and Maureen McDonnell is charged with one count of obstruction of an official proceeding.

“I thank the Assistant U.S. Attorneys, FBI, Virginia State Police and the Internal Revenue Service-Criminal Investigation for their exceptional efforts in the investigation of this case,” said Acting U.S. Attorney Boente.  “We will continue to work tirelessly with our law enforcement partners to investigate and prosecute public corruption.”

“Today’s charges represent the Justice Department’s continued commitment to rooting out public corruption at all levels of government,” said Acting Assistant Attorney General Raman. “Ensuring that elected officials uphold the public’s trust is one of our most critical responsibilities.”

“One of the most important investigative responsibilities with which the FBI is tasked is ensuring that the integrity of our elected public officials has not been compromised,” said FBI SAC Mazanec.  “The Richmond Division of the FBI and our law enforcement partners have diligently worked this lengthy, detailed and sensitive matter.  I want to thank all those who have worked very hard and with great care on this investigation.”

“The state police and FBI agents assigned to this case have devoted an extensive amount of time and effort to this matter,” said Colonel Flaherty. “They are to be commended for their professionalism, objectivity and dedication to duty in conducting this highly complex and sensitive investigation.”

            “Public officials hold positions of trust and must accept the transparency and accountability that our laws require and their constituents expect,” said IRS-CI Chief Weber. “IRS-CI stands committed to investigating those officials.  This case should serve as a strong warning to those who might consider similar behavior.  No one is above the law and everyone is accountable for their misdeeds.”

According to the indictment, from April 2011 through March 2013, the McDonnells participated in a scheme to use the former governor’s official position to enrich themselves and their family members by soliciting and obtaining payments, loans, gifts and other things of value from Star Scientific, a Virginia-based corporation, and “JW,” then Star Scientific’s chief executive officer.  The McDonnells obtained the things of value in exchange for the former governor performing official actions on an as-needed basis to legitimize, promote and obtain research studies for Star’s products, including the dietary supplement Anatabloc®.

As alleged in the indictment, the McDonnells obtained from JW more than $135,000 in direct payments as gifts and loans, thousands of dollars in golf outings, and numerous other things of value.  As part of the alleged scheme, the official actions that Robert McDonnell performed included arranging meetings for JW with Virginia government officials, hosting and attending events at the Governor’s Mansion designed to encourage Virginia university researchers to initiate studies of Star’s products and to promote Star’s products to doctors for referral to their patients, contacting other Virginia government officials as part of an effort to encourage Virginia state research universities to initiate studies of Star’s products, and promoting Star’s products and facilitating its relationships with Virginia government officials.

The indictment further alleges that the McDonnells attempted to conceal the things of value received from JW and Star to hide the nature and scope of their dealings with JW from the citizens of Virginia by, for example, routing things of value through family members and corporate entities controlled by the former governor to avoid annual disclosure requirements.  Moreover, the indictment alleges that on Oct. 3, 2012, Robert McDonnell sent loan paperwork to a lender that did not disclose the loans from JW, and on Feb. 1, 2013, the McDonnells signed loan paperwork submitted to another lender that did not disclose the loans.  Similarly, the indictment alleges that on Feb. 15, 2013, Maureen McDonnell was questioned by law enforcement about the loans and made false and misleading statements regarding the defendants’ relationship with JW.  Three days later, on Feb. 18, 2013, Robert McDonnell is alleged to have sent loan paperwork to one of the previously mentioned lenders disclosing the loans from JW.  Additionally, after her interview with law enforcement, Maureen McDonnell allegedly wrote a handwritten note to JW in which she falsely attempted to make it appear that she and JW had previously discussed and agreed that she would return certain designer luxury goods rather than keep them permanently, all as part of an effort to obstruct, influence and impede the investigation.

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

If convicted, the McDonnells could each face a maximum statutory sentence of 20 years in prison and a fine of the greater of $250,000 or twice the gross gain or loss on the conspiracy to commit honest-services wire fraud count, the honest-services wire fraud counts, the conspiracy to obtain property under color of official right count, and the obtaining property under color of official right counts; a maximum statutory sentence of 30 years in prison and a fine of the greater of $1,000,000 or twice the gross gain or loss on the false statement counts; and a maximum statutory sentence of 20 years in prison and a fine of the greater of $250,000 or twice the gross gain or loss on the obstruction of an official proceeding count.

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

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