Eastern District of Virginia

NORFOLK, Va. – Patrick R. Lambert, 56, of Virginia Beach, Va., pleaded guilty today to fraud in connection with a local government receiving federal funds. 

            Neil H. MacBride, United States Attorney for the Eastern District of Virginia and Royce E. Curtin, Special Agent in Charge, Federal Bureau of Investigation Norfolk Office, made the announcement after the plea was accepted by Chief United States District Judge Rebecca B. Smith.

            Lambert faces a maximum penalty of 10 years imprisonment when he is sentenced on August 16, 2013.

            In a statement of facts filed with the plea agreement, Patrick R. Lambert was a facilities maintenance supervisor with the City of Norfolk and was acquainted with Andrew T. Zoby, Jr., who had a plumbing contract with the City of Norfolk.  Lambert owned a home and several rental properties in the Cities of Norfolk and Virginia Beach and at various times from approximately 2006 through 2011, would request that Zoby’s plumbing business perform certain work on the properties.  Zoby’s employees performed the requested work which had a total value of $17,547.57.  Lambert did not pay Zoby or his company for the work that was performed on these properties.  In order to obtain reimbursement for these services, Zoby with the knowledge of Lambert, would submit fraudulent invoices for alleged plumbing services to the City of Norfolk.  Lambert was aware of and acquiesced in the payment of these fraudulent invoices.  As a result of this scheme, Lambert received free plumbing services in the approximate amount of $17,547.57 and Zoby was reimbursed this amount from the City of Norfolk funds.  Zoby has previously pled guilty and will be sentenced on July 10, 2013, in United States District Court in Norfolk Va.     

            This case was investigated by Federal Bureau of Investigation, Norfolk Office.  Assistant United States Attorney Robert J. Seidel, Jr. 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. – Nathan Allen Dunn, 30, of Brookwood, Ala., was sentenced today to 87 months in prison, followed by three years of supervised release, for wire fraud and for receiving bribes in his position as a USCG Transportation Administrator.  Dunn was also ordered to pay $779,549.85 in restitution to the U.S. Treasury. 

            Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Otis E. Harris, Jr., Special Agent in Charge, Coast Guard Investigative Service, Chesapeake Region; and Michael P. Dawson, Special Agent in Charge, Department of Homeland Security, Office of Inspector General, Washington Field Office, made the announcement after sentencing by   United States District Judge Mark S. Davis. 

            Dunn previously pled guilty to the charges on January 4, 2013.  According to court documents, Dunn, formerly an active duty U.S. Coast Guard (USCG) Petty Officer, Second Class was assigned as a Transportation Administrator at the Surface Forces Logistics Center in Norfolk, Va.  Dunn’s primary duty was to coordinate the shipping of large freight such as boats, trailers, generators, etc., between USCG bases located throughout the United States.  Dunn was responsible for operating the Department of Defense Transportation Command (TransCom) automated system to bid out and then contract the shipments with authorized freight brokerage companies. 

            Dunn’s co-conspirator, Huffman Earl Monk, was the owner and operator of 12 freight brokerage companies that were headquartered in a single office in Brookwood, Ala. Most of Monk’s freight brokerage companies contracted with TransCom to ship military-related freight. 
In September 2009, Monk traveled to Norfolk to meet with Dunn, who was only recently assigned as a USCG Transportation Administrator.  As a result of their discussions, Dunn and Monk entered into an agreement whereby Dunn would agree to issue over-priced USCG freight contracts to Monk’s freight companies, in exchange for Monk giving bribes in the form of kickbacks as percentage of the contract profits to Dunn.  Shortly after Monk and Dunn entered into their agreement, Monk began giving monetary bribes to Dunn by providing him with debit cards linked to several of Monk’s business bank accounts.  In order to inflate the profits Monk and Dunn would earn from each contract, Monk encouraged Dunn to fraudulently manipulate various data entered into the TransCom computer system in order to artificially inflate the price of the shipping contracts Dunn steered to Monk’s freight companies.  Dunn and Monk also engaged in creating at least six false shipping contracts for military freight shipments that did not exist, thereafter awarding the contract and profits to one or more of Monk’s companies.  Since no freight was actually shipped pursuant to these false contracts, the USCG payments to Monk’s companies were all profit, resulting in Dunn receiving half of the contract award payments from Monk.  Over a two-year period, Dunn received over $220,000 in bribe payments from Monk.  The total loss to the United States based on these fraudulent military shipping contracts was $779,549.85.

            The military has recently implemented a number of internal changes to TransCom’s computer systems to enhance the integrity of the bidding and contracting process used by Department of Defense and Department of Homeland Security Transportation Officers.

Judge Davis previously sentenced Huffman Monk on April 29, 2013 in Norfolk, Virginia, to a term of 63 months imprisonment, followed by three years of supervised release, for wire fraud and for paying bribes to Dunn.  Monk was also ordered to pay a fine of $15,000 and $779,549.85 in restitution to the U.S. Treasury.  

This investigation was brought as part of the Hampton Roads Procurement Fraud Initiative, a collaboration of defense investigative agencies, Inspectors General, and law enforcement dedicated to strengthening the integrity of the federal procurement system.

This case was investigated by the United States Coast Guard Investigative Service and the Department of Homeland Security, Office of the Inspector General, Washington Field Office, with the cooperation and assistance of the Coast Guard Surface Forces Logistics Center.  Assistant United States Attorneys Stephen W. Haynie and V. Kathleen Dougherty are prosecuting the case on behalf of the United States.

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

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ALEXANDRIA, Va. – Saurabh Agarwal, age 40, of Sterling, Va., was indicted today on one count of abusive sexual contact. 

            Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement following the return of the indictment. 

            Agarwal faces a maximum sentence of two years imprisonment, if convicted.

            According to court documents, Agarwal allegedly fondled the breast of the woman seated next to him on an American Airlines flight from Miami to Reagan National Airport on April 10, 2013.  Agarwal is alleged to have initiated this conduct after the victim fell asleep following take off. 

The investigation is being conducted by FBI’s Washington Field Office.  Assistant United States Attorney Patricia Haynes and Special Assistant United States Attorney Elizabeth Rawlings are prosecuting the case on behalf of the United States.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.

A copy of this press release may be found on the website of the 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. – Phillip Michael Bryant, 26, of Brooklyn, New York was sentenced today to life in prison for the murder of three people in aid of racketeering. Bryant pled to the murder of Sean McCracken on or about November 1, 2009, and the murder of Johnny Avery on March 19, 2010. Both murders were committed on Lincoln Park Housing Development property in Hampton.  In addition, Bryant waived venue in New York and pled guilty to the murder of Jeremy Kane, a New York State Corrections Officer, who was killed on June 28, 2009, outside of a beauty salon in Brooklyn, New York.

            Neil H. MacBride, United States Attorney for the Eastern District of Virginia, Royce E.Curtin, Special Agent in Charge of the FBI's Norfolk Division and Thomas Townsend, Acting Chief of Hampton Police made the announcement after sentencing by United States District Judge Robert G. Doumar.

“Phillip Bryant poisoned the Lincoln Park Towers community with the crack he dealt.  In protecting his drug “turf,” Bryant’s violence caused the death of multiple Hampton residents and left a shaken community in his wake," said U.S. Attorney Neil H. MacBride.  "Bringing the full breadth of criminal justice resources to investigate and prosecute Bryant’s conduct, my office, along with our federal, state, and local a law enforcement partners, sought justice for the victims by advocating that Bryant receive the sentence imposed today-life in prison.”

            According to court records, the defendant and two others from New York were part of a criminal organization known as the “Miller Time Bloods,” a neighborhood set of the national gang known as “the Bloods.”  Bryant and the others travelled to Virginia to operate a drug trafficking business and were known locally as the “New York Boys.” The members and associates engaged in trafficking cocaine base, cocaine and marijuana brought from New York for sale in Lincoln Park. The alleged gang members protected the criminal enterprise and activities through the use of intimidation, violence and threats of violence. In the statement of facts filed at the time of his guilty plea, Bryant admitted to killing Sean McCracken after arguing with him over drug sales taking place outside of the Lincoln Park Tower.  After the murder Bryant attempted to dismember the body with an ax. When that proved unsuccessful, he and a co-defendant disposed of McCracken’s body by removing it from the apartment in a steamer trunk and placing it in a dumpster. The dumpster was transported to the Hampton landfill and, beginning in April, 2010, the FBI and Hampton Police conducted an exhaustive thirty-one day search of the landfill but McCracken’s body was never recovered. Johnny Avery was murdered by Bryant over a territorial drug dispute and what Bryant deemed a lack of respect. Avery was talking with two others outside of the Lincoln Park Tower when Bryant joined the conversation, pulled out a firearm, and shot Avery in the face. Despite Avery’s efforts to flee across the parking lot, he was shot multiple times and died of his injuries. Bryant admitted that both murders furthered his position in the “New York Boys,” and his reputation for violence.  Jeremy Kane, a correctional officer assigned to the Sing Sing correctional facility was murdered outside of a salon in Brooklyn, New York.  It is believed that Bryant murdered Kane in retaliation for Kane pressing charges against a gang member’s brother.   

            This case was investigated by the Federal Bureau of Investigation Safe Streets Task Force and Hampton Police Division. Assistant United States Attorneys Howard J. Zlotnick and Lisa R. McKeel prosecuted this 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. – Robert Kropp, 26, of Colonial Heights, Virginia, pleaded guilty today to one count of using a means or facility of interstate commerce to coerce or entice a minor to engage in sexual activity, and one count of receipt of child pornography.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and JeffreyC. Mazanec, Special Agent in Charge of the FBI’s Richmond Field office made the announcement after the plea was accepted by United States District Judge Henry E. Hudson. 
Kropp was faces a mandatory minimum sentence of ten years, up to life imprisonment, when he is sentenced on August 2, 2013.  

            In a statement of facts filed with his plea agreement, Kropp admitted that in March 2013, he began communicating with a woman who had advertised herself on the internet as a 19 year old prostitute.  Kropp asked the woman if she knew of anyone younger with whom he could engage in sexual activity.  The woman’s account was later taken over by law enforcement, who continued to communicate with Kropp while posing as the female.  During these conversations, Kropp indicated a desire to meet with an individual that he believed to be the prostitute’s 13 year old cousin to engage in sexual activity.  Kropp then began communicating via text message with the purported 13 year old year, including sending sexually suggestive messages and images to the minor.  On March 7, 2013, Kropp arrived at a hotel in Richmond where he believed he would be meeting the 13 year old to engage in sexual activity.  Kropp was subsequently arrested, and in an interview with law enforcement, admitted to downloading and viewing child pornography as well. 
This case was investigated by the Federal Bureau of Investigation with assistance from the Henrico County Police Department.  Assistant United States Attorney Jamie Mickelson 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. – George Washington Crane, V, 47, of Leesburg, Va., was arrested on Friday, and made his initial appearance in court today, on charges of conspiracy to distribute Oxycodone resulting in the 2010 death of a young Loudoun County man.

Neil H. MacBride, 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, Sheriff of Loudon County,  made the announcement after Crane’s initial appearance today before United States Magistrate Judge T. Rawles Jones, Jr.

Crane faces a mandatory minimum sentence of twenty years and a maximum penalty of life imprisonment, if convicted.

       According to court documents and proceedings held today, Crane allegedly purchased Oxycodone from sources in Washington, D.C. from 2006 through 2012.  According to the affidavit filed in support of the criminal complaint, Crane primarily distributed that Oxycodone to individuals in Western Loudoun County, Va.
       On August 8, 2010, a 20 year old Loudoun County man died from an Oxycodone overdose at his home.  This young man had left a drug rehabilitation facility just one day earlier.  The criminal complaint alleges that Crane sold the Oxycodone, through an intermediary, that ultimately resulted in the victim’s death from overdose.

The investigation is being conducted by FBI’s Washington Field Office and the Loudoun County Sherriff’s Office.  Assistant United States Attorney Adam B. Schwartz is prosecuting the case on behalf of the United States.

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

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

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NEWPORT NEWS, Va. – Jeffrey A. Martinovich, 46, of Norfolk, Va., was convicted today by a federal jury for his involvement in fraud related to the mismanagement of a Newport News-based hedge fund. Specifically, he was convicted of conspiracy to commit mail and wire fraud, four counts of wire fraud, five counts of mail fraud, and seven counts of unlawful monetary transactions.

       Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Tom Kelly, Special Agent in Charge of the Internal Revenue Service Criminal Investigation’s Washington, D.C., Field Office; and Royce E. Curtin, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement today after the verdict was accepted by United States District Judge Robert G. Doumar. Martinovich faces a maximum penalty of 20 years in prison for each conviction when he is sentenced on August 7, 2013.

       “As a hedge fund manager, Martinovich promised investors that he would act in their best interest in managing their hard earned money,” said U.S. Attorney MacBride.  “Instead, Martinovich acted solely in his own self-interest and engaged in financial sleight of hand to fraudulently maximize his management fees.  His conviction should send a strong message that fraudsters who violate the trust of the investing public will be brought to justice.”

       Martinovich was indicted on October 10, 2012, on 26 charges of mail fraud, wire fraud, unlawful monetary transactions, and bankruptcy fraud.  According to court records and evidence at trial, Martinovich was the CEO of MICG Investment, LLC, an investment firm based in Newport News, Virginia.  In 2007, Martinovich started three hedge funds through MICG and began seeking investments.  Acting on behalf of MICG, Martinovich purchased approximately two million shares of a privately traded solar energy company for the MICG Venture Strategies, LLC hedge fund.  At the end of each calendar year, in order to calculate the management and incentive fees he had earned as hedge fund manager, Martinovich needed to obtain an estimate of the value of the solar company shares held by Venture Strategies.  Because the solar company was not publicly traded, MICG was required to seek an independent, external, valuation of the company’s worth when calculating the management and incentive fees to be paid.

       In 2008, under the guise of seeking an independent valuation, Martinovich and others fraudulently inflated the value of the solar company to falsely indicate an increase in the overall value of the hedge fund. Martinovich then used this fraudulent, unsupported, and inflated value of the solar company to convince new investors to invest in Venture Strategies, as well as to pay himself greater fees.  The solar company eventually declared bankruptcy, resulting in serious financial problems for many Venture Strategies investors who had collectively invested over 1.5 million dollars.

       This case was investigated by the Internal Revenue Service Criminal Investigations Division and the Federal Bureau of Investigation, with the assistance of the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority, and the Virginia State Corporation Commission.  Assistant United States Attorneys Brian J. Samuels and V. Kathleen Dougherty prosecuted this case on behalf of the United States.

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

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ALEXANDRIA, Va. – Youn Sok Chang, also known as “Michael Chang,” 35, of Gambrills, Md., pleaded guilty yesterday to Conspiracy to Commit Alien Harboring.  Chang, who is originally from South Korea, was the owner and operator of a “doumi” business that provided female escorts to customers at nightclubs in Annandale, Virginia.

            Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and John P. Torres, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Washington, D.C, made the announcement after the plea was accepted by United States District Judge T. S. Ellis, III. 

            Chang faces a maximum penalty of ten years of imprisonment when he is sentenced on July 26, 2013.  Chang also agreed to forfeit $144,000.

            In a statement of facts filed with his plea agreement, Chang admitted that since at least December 2010, he has operated a doumi business that provided female companionship to men in Annandale, Virginia.   Chang’s doumi business was known at various times as “Da Bong,” “Coco,” and “Romance.”  Chang hired illegal aliens from South Korea to work as “doumis,” and he housed these women in an apartment he had rented in Virginia. Various nightclubs in Annandale and Centreville would call Chang and order women for customers.  Chang would then transport the women to the various clubs.  Generally customers were charged $70 per hour to converse, dance, or sing with the women.

            Chang also admitted that he and co-conspirators recruited women from South Korea to serve as doumis and he transported some of the women from Georgia and New York to Virginia.  Chang promised one woman he sought to recruit that she could earn $6,000 per month working for Chang.  Chang and his coconspirators admitted to harboring at least 27 illegal aliens.  One of Chang’s co-conspirators, Taeson Won, previously pleaded guilty to Conspiracy to Commit Alien Harboring and was sentenced to 15 months in federal prison for his role in the offense.

            This case was investigated by Homeland Security Investigations of U.S. Immigration and Customs Enforcement.  Assistant United States Attorney Michael J. Frank is prosecuting the case on behalf of the United States.

A copy of this press release may be found on the website of the 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. – Kimberly Yvette Dinkins, 44, of Manassas, Va., was sentenced to 18 months in prison, followed by two years of supervised release, for dealing firearms without a license.

Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia, and Carl J. Vasilko, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Washington Field Division, made the announcement after the sentencing by United States District Judge Claude M. Hilton.

            According to documents filed in connection with the case, Dinkins purchased 31 firearms – all handguns – on three consecutive weekends from Nov. 17 through Dec. 1, 2012.  She purchased these firearms at three separate gun shows in Chantilly, Richmond, and Hampton, Va.  Dinkins, who was not a federally licensed dealer of firearms, purchased the handguns with the intention of selling them for profit.

            Filings associated with the case state that the firearms bought and sold by Dinkins were eventually recovered from juveniles and felons who utilized the firearms during drug trafficking schemes.  Specifically, on Nov. 30, 2012, local law enforcement in Prince George’s County, Md., recovered one of the firearms bought and sold by Dinkins from a 20 year old Maryland man during the course of a narcotics investigation.  On Dec. 12, 2012, local law enforcement in Prince George’s County recovered a second firearm bought and sold by Dinkins from a 19 year old Maryland man, again during the course of a narcotics investigation.  Both Maryland men have pleaded guilty to possession of firearms-related charges in Maryland state court. 

This investigation is being conducted by ATF’s Washington Field Division.  Special Assistant United States Attorney L. Rush Atkinson and Virginia Assistant Attorney General and Special Assistant United States Attorney Marc J. Birnbaum are prosecuting the case on behalf of the United States.

A copy of this press release may be found on the website of the 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. – Sammie Royal, 41, of Hampton, Va., was sentenced Thursday to 262 months in prison, followed by five years supervised release, after pleading guilty to participating in a conspiracy to distribute cocaine.

            Neil H. MacBride, United States Attorney for the Eastern District of Virginia and Thomas Townsend, Chief of the Hampton Police Division, made the announcement after sentencing by United States District Judge Mark S. Davis. 

            According to court records, between 2006 and 2011, Royal was involved in a conspiracy to possess with the intent to distribute and to distribute more than 15 kilograms of cocaine some of which was obtained through a co-conspirator in Texas.  Royal was in possession of a large amount of cocaine which was recovered during execution of a search warrant at a residence on Shell Road in Hampton in October, 2007.  Court records indicate that Royal was a felony “career offender” with drug, firearm, and abduction convictions dating back to 1994.

            This case was investigated by the Hampton Police Division, the Drug Enforcement Administration, and the office of ICE’s Homeland Security Investigations (HSI). Special Assistant United State 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.

ALEXANDRIA, Va. – Edgar Leonel Estrada-Morales, 56, of Guatemala City, Guatemala, pleaded guilty today to conspiring to distribute pseudoephedrine for unlawful importation into the United States and to aid and abet the manufacture of methamphetamine. 

            Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Derek S. Maltz, Special Agent In Charge of the Drug Enforcement Administration’s (DEA) Special Operations Division, made the announcement after the plea was accepted by United States District Judge T.S. Ellis, III. 

            Estrada-Morales, along with his nephew, Victor Estrada-Paredes, were indicted on February 3, 2011, by a federal grand jury on a charge of conspiring to distribute pseudoephedrine (a chemical used in the manufacture of methamphetamine) for unlawful importation into the United States and to aid and abet the manufacture of 500 grams or more of methamphetamine.  Estrada-Paredes previously pleaded guilty to the indictment on April 25, 2013, before Judge Ellis.  Both Estrada-Morales and Estrada-Paredes face a maximum penalty of life in prison when they are sentenced on August 2, 2013, and July 19, 2013, respectively. 

            In a statement of facts filed with his plea agreement, Estrada-Morales admitted to selling nearly 5,000 pseudoephedrine pills to an individual whom he believed was involved in a methamphetamine production operation based in Houston, Texas.  This individual was, in reality, a DEA cooperating witness.  Estrada-Morales also introduced this individual to his nephew, Estrada-Paredes, who was also involved in this pseudoephedrine trafficking operation.  According to the indictment, Estrada-Morales sold pseudoephedrine to different groups, including the “La Familia” Mexican drug cartel that sold methamphetamine in the United States.

            This case was investigated by the Drug Enforcement Administration.  Assistant United States Attorney Michael P. Ben’Ary, of the Office’s National Security and International Crime Unit, 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.usdoj.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 http://pacer.uspci.uscourts.gov.

ALEXANDRIA, Va. – Robert Edwin Steele, 38, of Alexandria, Virginia, was convicted today by a federal jury of 14 counts of unauthorized access to a protected computer.

            Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the Federal Bureau of Investigation’s Washington Field Office, made the announcement after the verdict was accepted by United States District Judge Gerald Bruce Lee.

            Steele was specifically found guilty of two misdemeanor and twelve felony violations of Title 18, United States Code, Section 1030(a)(2).  When he is sentenced on July 19, 2013, Steele faces a maximum term of imprisonment of one year on each of the two misdemeanor counts and five years on each of the felonies.

            Steele was indicted on December 13, 2012, on fourteen counts of unauthorized access to a protected computer. According to court records and evidence at trial, Steele worked at multiple companies involved in government contracting.  On December 15, 2010, Steele resigned from one government contracting firm, described in court documents as “Company A,” due to a dispute about his compensation with Company A and “Company B,” another government contracting firm that was in the process of acquiring Company A.

            When Steele left Company A on December 15, 2010, he provided verbal and written assurances to officials of Company A that he would not access its systems after his departure, and even urged them to shut down his existing accounts.  That same day, however, Steele began logging into Company A’s email systems using a secret administrative account which he learned about during his work for Company A.  Steele immediately began downloading hundreds of proprietary documents using this administrative account.

            Shortly after resigning, Steele joined another government contractor, “Company C,” that directly competed with Companies A and B for government contracts.  At Company C, Steele worked as “Director of Law Enforcement” and prepared bids for government contracts on law enforcement projects.  In that position, Steele undercut Company A’s bid on a government contract by approximately $100,000, while downloading Company A’s documents on the same contract.  Although his attempt to win the bid failed, Steele continued to methodically sift through thousands of valuable documents stored on computers for Company A.

            From December 15, 2010 until September 2, 2011, when agents for the Federal Bureau of Investigation seized equipment used by Steele to access the account, Company A’s system had been accessed by their former employee more than 79,000 times.

            This case was investigated by the Federal Bureau of Investigation’s Washington Field Office.  The Office of the Inspector General for the General Services Administration provided additional assistance.

            Assistant United States Attorney Alexander T.H. Nguyen and Special Assistant United States Attorney Jonathan Keim are prosecuting the case on behalf of the United States.

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

RICHMOND, Va. – Robert Lee Pernell, 42, of Richmond, Va., was convicted today by a federal jury of conspiracy to interfere with commerce by robbery, attempt to interfere with commerce by robbery and use, carry, brandish and discharge a firearm in furtherance of the attempted robbery. 

Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Carl Vasilko, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, made the announcement after the verdict was accepted by United States District Judge Robert E. Payne.Pernell faces a mandatory minimum term of 10 years of incarceration and a maximum penalty of life imprisonment when he is sentenced on July 25, 2013. 

According to the evidence presented at trial, Pernell and another man, both armed with firearms, ambushed a man and woman as they returned home late at night to their Smoketree South residence, in Chesterfield, Virginia.  The couple attempted to flee into the house, but one of the assailants jammed the barrel of a shotgun in the doorway, preventing it from closing.  A struggle ensued just inside the doorway.  The man was pushed out into the yard and one of the assailants shot a firearm at him.  As this was happening, the woman fled for the back of the house and grabbed a pistol from the bedroom.  Pernell, armed with a shotgun, pursued the woman and as he entered the bedroom fired the shotgun he was carrying.  The woman fired the pistol she had grabbed, shooting Pernell in the arm.  Pernell and his accomplice fled the house.  Fearing for her life, the woman hid in the bedroom closet until the Chesterfield County Police arrived.  A subsequent search of the house resulted in the discovery of approximately 116 grams of crack cocaine and over $125,000 in cash that belonged to the residents.  The male victim and another male resident of the house subsequently pleaded guilty to drug trafficking charges.

This case was investigated by the Chesterfield County Police Department and the ATF.  Assistant United States Attorney Olivia L. Norman is prosecuting the case on behalf of the United States.

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

NEWPORT NEWS, Va. – Ronald W. Carr, 38, of Newport News, Va., pleaded guilty today to twenty-eight counts of robbery without a plea agreement.

            Neil H. MacBride, U. S. Attorney for the Eastern District of Virginia and Carl J. Vasilko, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Washington Field Division, made the announcement after the plea was accepted by United States District Judge Henry C. Morgan.

            Carr was charged in an indictment returned on January 16, 2013, with twenty-eight counts of robbery.  Carr faces a maximum penalty of 20 years in prison on each of the robbery charges when he is sentenced on September 11, 2013, in Norfolk.

            In a statement of facts filed during the plea hearing, Carr admitted to robbing the following stores and restaurants between December 18, 2010 and December 27, 2012: Advance Auto Parts, Auto Zone, Bojangles', Captain D’s, Dollar General, Family Dollar, KFC, and Long John Silver’s. The stores were located in York County, Hampton and Newport News, Va. In some instances, the same franchise was robbed, but in different locations. During the robberies, Carr possessed, brandished and pointed a firearm at store employees and demanded money.

            The investigation of this case was led by the ATF’s Washington Field Division, with the assistance of the York County Sheriff’s Office, Newport News Police Department and the Hampton Police Division. Assistant United States Attorney Robert E. Bradenham, II is prosecuting the case on behalf of the United States.

A copy of this press release may be found on the website of the 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. – Christian Lamont Johnson, 24, of Hampton, Va., was sentenced today to 385 months in prison, followed by 5 years of supervised release, for robbing multiple businesses while armed with a gun in the Hampton Roads area.
            Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Mythili Raman, Acting Assistant Attorney General for the Criminal Division; and James D. Newman, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by Senior United States District Judge Henry Coke Morgan, Jr. 
            Johnson pleaded guilty on Jan. 28, 2013, on the day his jury trial was set to begin in Norfolk Federal Court, and was convicted of one count of robbery and two counts of possessing and brandishing a firearm in furtherance of a crime of violence.
            Johnson was charged with committing three different armed robberies in a five-count superseding indictment returned on Sept. 20, 2012.  According to court documents filed with his plea agreement, Johnson robbed an Approved Cash Advance check-cashing business in Norfolk on June 21, 2012, and a 7-Eleven convenience store in Hampton on July 3, 2012.  During both robberies, he possessed and brandished a firearm to employees of the businesses.  Following the 7-Eleven robbery, Johnson was seen entering a vehicle dressed in a black hooded sweatshirt, t-shirt and jeans, and wearing a black ski mask and gloves, while armed with a handgun.  A witness followed Johnson’s vehicle and reported it to police.  A high speed chase ensued when Johnson failed to yield to law enforcement.  Attempting to evade authorities, Johnson drove at speeds reaching 100 miles per hour, veered into oncoming traffic, forced several motorists off of the road, and ran numerous red lights while narrowly missing other motorists.  Johnson also drove across the James River Bridge and began throwing items out of the car.  The chase ended 30 minutes later in Chesapeake when Johnson struck a median, lost control of the vehicle, and crashed into several trees.  He then fled the scene on foot but was apprehended by the Virginia State Police. 
            The investigation of this case was led by the ATF’s Washington Field Division, with the assistance of the Hampton Police Division, Norfolk Police Department, Chesapeake Police Department, and the Virginia State Police.  Trial Attorneys Louis Crisostomo of the Organized Crime and Gang Section, and Teresa Wallbaum of the Human Rights and Special Prosecutions Section, both in the Justice Department’s Criminal Division, prosecuted the case on behalf of the United States.

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

ALEXANDRIA, Va. – Mustapha Issaka Zico, 41, of Nima, Ghana, was sentenced today to 216 months in prison, followed by five years of supervised release, for conspiring to import heroin from Ghana into the United States. He was also ordered to forfeit $110,000.

Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Karl C. Colder, Special Agent In Charge for Drug Enforcement Administration (DEA) Washington Division Office; and John P. Torres, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Washington, D.C., made the announcement after sentencing by United States District Judge Liam O’Grady.

Zico was found guiltyon January 25, 2013, following a three-day trial. According to court documents, the defendant was one of the ringleaders of a multi-kilogram heroin trafficking organization in Ghana.  The organization used couriers aboard commercial airlines to smuggle heroin from Ghana to the United States, frequently from the Kotoka International Airport in Accra, Ghana, to Dulles International Airport in the Eastern District of Virginia, as well as other airports in the United States.  According to the indictment and evidence at trial, Zico and his co-conspirators paid off airport officials in Ghana to allow safe passage of the heroin.  Zico was directly involved in several heroin shipments and directed the activities of previously convicted co-conspirators Edmund Darkwah, Fred Brobbey, and Matilda Antwi, all of whom pled guilty to charges in the Eastern District of Virginia.  Zico shared leadership of the conspiracy with Edward Macauley, who was also convicted in the Eastern District of Virginia and sentenced to 168 months’ imprisonment.

Five defendants were extradited from Ghana to stand trial in the Eastern District of Virginia after coordinated arrests by the Ghanaian Narcotics Control Board, while other co-conspirators were arrested in New York, Maryland, and Virginia on July 14, 2011.  Still more defendants were charged, arrested, and extradited from Ghana in 2012.  In all, eleven co-conspirators were convicted.

       This Organized Crime and Drug Enforcement Task Force (OCDETF) investigation was conducted by the DEA, including agents in Washington, New York, and Ghana, and by DHS Homeland Security Investigations, with assistance from the Ghanaian Narcotics Control Board and Ghana Police Services, the U.S. Department of Justice's Office of International Affairs, and the U.S. Customs and Border Protection.

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. – Between April 17 and May 29, 2013, eleven defendants have pleaded guilty to mortgage fraud and other fraud-related charges.  This criminal activity involved the owners, operators, employees, and affiliates of several real estate-related businesses located in Annandale, Virginia and nearby Northern Virginia towns.

Neil H. MacBride, United States Attorney for the Eastern District of Virginia and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office made the announcement after the pleas were accepted by the following United States District Judges: Gerald Bruce Lee, Liam O’Grady, and Anthony J. Trenga.

“Rampant fraud in the real estate sector provided the catalyst for the 2008 housing crisis, and continued fraud slows our economic recovery,” said United States Attorney, Neil H. MacBride. “My office is committed to ferreting out and prosecuting those in our Northern Virginia communities who commit fraud against banks and innocent third-parties during the course of real estate transactions.  The conviction of these eleven defendants is proof-positive of our commitment to root out this kind of fraud within the borders of the Eastern District of Virginia.”

            “These defendants have admitted to bilking millions of dollars from our financial institutions by falsely inflating costs of doing business while processing short sales, keeping payoffs from mortgages thought to have been refinanced, and illegally borrowing against escrow accounts of homeowners in Northern Virginia,” said Assistant Director in Charge Parlave. “These pleas should serve as an alert to those who believe fraud is an acceptable way of doing business. Together with our law enforcement partners, the FBI will remain vigilant in investigating mortgage fraud schemes and will hold individuals accountable for their illegal actions.”

Altogether, eleven individuals have been convicted in this fraud ring:

• Theresa Choi, 53, of Centreville, Virginia, pleaded guilty on April 17, 2013, to one count of felony conspiracy to commit wire fraud.  She faces a maximum penalty of 20 years in prison when she is sentenced on July 12, 2013;

• Seung Oh a/k/a Sandy Oh, 44, of Great Falls Virginia, pleaded guilty on April 30, 2013, to one count of felony conspiracy to commit wire fraud.  She faces a maximum penalty of 20 years in prison when she is sentenced on August 16, 2013;

• Haemi Chee, 24, of Fairfax, Virginia, pleaded guilty on May 1, 2013, to one count of felony conspiracy to commit wire fraud.  She faces a maximum penalty of 20 years in prison when she is sentenced on July 19, 2013.

• Hae Mi Son a/k/a Teri Sohn, 37, of Fairfax, Virginia, pleaded guilty on May 2, 2013, to one count of felony conspiracy to commit wire fraud.  She faces a maximum penalty of 20 years in prison when she is sentenced on September 6, 2013.

• Sung Hwan Kim a/k/a Brian Kim, 47, of Fairfax, Virginia,pleaded guilty on May 9, 2013, to one count of felony conspiracy to commit wire fraud.  He faces a maximum penalty of 20 years in prison when he is sentenced on August 16, 2013. 

• James Youngmock Sohn, 55, of Potomac, Maryland, pleaded guilty on May 8, 2013, to one count of felony conspiracy to commit wire fraud.  He faces a maximum penalty of 20 years in prison when he is sentenced on August 16, 2013.

• Joy Park, 37, of McLean, Virginia, pleaded guilty on May 10, 2013, to two counts of felony conspiracy to commit wire fraud.  She faces a maximum penalty of 20 years in prison for each count when she is sentenced on August 9, 2013.

• Yeon Kyung Han, 52, of McLean, Virginia, pleaded guilty on May 15, 2013, to two counts of felony conspiracy to commit wire fraud.  She faces a maximum penalty of 20 years in prison for each count when she is sentenced on August 9, 2013.

• Hee Jung Jenny Shin, 44, of Fairfax Station, Virginia, pleaded guilty on May 29, 2013,  to one count of felony conspiracy to commit wire fraud.  She faces a maximum penalty of 20 years in prison when she is sentenced on September 20, 2013.

• Woo Suk Oh a/k/a Eddie Oh, 41, of Annandale, Virginia, pleaded guilty on May 14, 2013, to one count of felony conspiracy to commit wire fraud.  He faces a maximum penalty of 20 years in prison for each count when he is sentenced on September 6, 2013.

• Min Shik Kim, 40, of Centreville, Virginia, pleaded guilty on May 29, 2013 to one count of felony conspiracy to commit wire fraud.  She faces a maximum penalty of 20 years in prison when she is sentenced on September 6, 2013. 

According to court documents, many of these defendants were involved in overlapping conspiracies whereby they would alter the terms of real estate settlements that had been approved by financial institutions.  Specifically, certain “overages” or illegitimate, inflated costs were added to the settlement paperwork, which induced the real estate lender to provide funds above and beyond what was actually approved to fund the transaction.  The conspirators would provide the lenders, buyers, and sellers falsified real estate documents to mask these illegal “overages.”  The defendants who were involved in conspiracies of this kind enriched themselves by keeping the “overage” funds for themselves.  In another part of the scheme, some of the defendants listed in these overlapping conspiracies laundered the proceeds of cash businesses to avoid paying federal and state taxes.  And other defendants, in addition to the above schemes, misappropriated funds kept in real estate escrow accounts for their own personal use.  Taken together, these multiple, overlapping conspiracies resulted in millions of dollars of losses to financial institutions, the federal government, and the Commonwealth of Virginia.

The defendants’ conspiracies lasted from approximately 2009 to 2012, in Annandale, Virginia, and other nearby Northern Virginia towns.  The following companies were involved in perpetuating the fraud:

• EPRO Technology
• Title One
• Pacific Realty
• Prime Realty and Investment
• Nations Title and Escrow
• Providence Title
• Potomac F&I
• Washington Financial and Investment
• Washington Settlement Group
• Washington Food & Supply of D.C., Inc.

This case was investigated by FBI’s Washington Field Office with investigative assistance provided by Internal Revenue Service Criminal Investigation’s Washington Office and United States Secret Service’s Washington Field Office. Assistant United States Attorney Chad I. Golder is prosecuting the cases on behalf of the United States.

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

RICHMOND, Va. –Jayant Khare, 50, of Powhatan, Va., pleaded guilty today to conspiring to structure more than $10,000,000 in cash transactions for the purpose of preventing banking institutions from reporting those transactions to the Internal Revenue Service (IRS).   

Neil H. MacBride, United States Attorney for the Eastern District of Virginia; John P. Torres, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Washington, D.C.; and Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service Criminal Investigation’s Washington, D.C., Field Office, made the announcement after the plea was accepted by United States District Judge Henry E. Hudson.

Khare was charged by criminal information filed on March 28, 2013, and faces a maximum penalty of five years in prison when he is sentenced on July 19, 2013.   

According to a statement of facts filed with the plea agreement, Khare, along with co-conspirator Loveleen Khare, owned and operated two cigarette retail stores known as Cigarettes America Plus and Cigarettes America at Westchester.  Khare admitted that from October 2011 to December 2012, he and Loveleen Khare conspired to structure over $10,000,000 in U.S. currency by splitting up cash deposits into accounts maintained at six banks, all in an effort to prevent the banks from filing Currency Transaction Reports with the IRS, which must be filed on cash deposits of $10,000 or greater.  The structured cash was obtained by selling large quantities of cigarettes to out-of-state individuals who were known to be transporting the cigarettes to locations outside of the Commonwealth of Virginia for resale as contraband cigarettes.  The sales took place at Khare’s personal residence and from the back door of the retail stores.

Loveleen Khare pled guilty to the conspiracy charge on April 17, 2013 and will also be sentenced on July 19, 2013.  

This case was investigated by HSI, the Internal Revenue Service - Criminal Investigation, and the Tobacco Enforcement Unit of the Office of the Attorney General of Virginia.  Assistant United States Attorneys Dominick S. Gerace and Laura Colombell Marshall are prosecuting the case on behalf of the United States.

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

NORFOLK, Va. – Huffman Earl Monk, 52, Brookwood, Ala., was sentenced today to 63 months in prison, followed by three years of supervised release, for wire fraud and for paying bribes to a U.S. Coast Guard Transportation Officer.  Monk was also ordered to pay a fine of $15,000.00 and $779,549.85 in restitution to the U.S. Treasury. 

            Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Otis E. Harris, Jr., Special Agent in Charge, Coast Guard Investigative Service, Chesapeake Region; and Michael P. Dawson, Special Agent in Charge, Department of Homeland Security, Office of Inspector General, Washington Field Office, made the announcement after sentencing by   United States District Judge Mark S. Davis. 

            Monk previously pled guilty to the charges on January 9, 2013.  According to court documents, Monk was the owner and operator of 12 freight brokerage companies that were headquartered in a single office in Brookwood, Ala. Many of Monk’s freight brokerage companies contracted with Department of Defense Transportation Command (TransCom) to ship military-related freight.  Monk’s co-conspirator was an active duty U.S. Coast Guard (USCG) Petty Officer assigned as a Transportation Administrator at the Surface Forces Logistics Center in Norfolk, Va.  It was the co-conspirator’s primary duty was to coordinate the shipping of large freight such as boats, trailers, generators, etc. between USCG bases located throughout the United States.  The co-conspirator utilized the TransCom automated system to bid out and then contract the shipments with authorized freight brokerage companies.

            In September 2009, Monk traveled to Norfolk to meet with the co-conspirator and told him that in exchange for issuing USCG freight contracts to Monk’s freight companies, Monk would kickback a percentage of the profits to him.  The co-conspirator agreed to Monk’s offer and, shortly thereafter, Monk began offering monetary bribes to the co-conspirator by providing him with debit cards linked to several of Monk’s business bank accounts.  In order to inflate the profits Monk and the co-conspirator would make from each contract Monk encouraged the co-conspirator to fraudulently manipulate various data entered into the TransCom computer system in order to artificially inflate the price of the shipping contracts the co-conspirator steered to Monk’s companies.  Monk and the co-conspirator also engaged in creating false shipping contracts for shipments that did not exist, and thereafter awarding the contract and profits to one or more of Monk’s companies.  Since no freight was actually being shipped pursuant to these false contracts, the USCG payments to Monk was all profit, resulting in the co-conspirator also receiving a larger kickback from Monk.  Over a two-year period, Monk paid out over $220,000 in bribe payments.  The total fraud loss to the United States based on these fraudulent military shipping contracts was over $1 million.

            The military has recently implemented a number of internal changes to TransCom’s computer systems to enhance the integrity of the bidding and contracting process used by Department of Defense and Department of Homeland Security Transportation Officers.

This investigation was brought as part of the Hampton Roads Procurement Fraud Initiative, a collaboration of defense investigative agencies, Inspectors General, and law enforcement dedicated to strengthening the integrity of the federal procurement system.

This case was investigated by the United States Coast Guard Investigative Service and the Department of Homeland Security, Office of the Inspector General, Washington Field Office, with the cooperation and assistance of the Coast Guard Surface Forces Logistics Center.  Assistant United States Attorneys Stephen W. Haynie and V. Kathleen Dougherty 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. –  Andrew Choi, 35, of Springfield, Va., was arrested today on charges of production and possession of child pornography.

Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Chief of Police Douglas W. Keen of the Manassas City Police Department made the announcement after Choi’s initial appearance before United States Magistrate Judge Theresa C. Buchanan.

            According to court documents and court proceedings today, Choi engaged in online video chats with underage boys between May 2012 and January 2013.  The underage boys performed sex acts on camera and Choi recorded it using a screen capture program.  In addition, hundreds of other images and videos of child pornography were also discovered on Choi’s computers.

            Choi is charged with production of child pornography, and faces a mandatory minimum of 15 years and maximum of 30 years in prison, if convicted.  He is also charged with possession of child pornography, and faces a maximum of 10 years in prison, if convicted.

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

The investigation was conducted by the Manassas City Police Department and the Northern Virginia/DC Internet Crimes against Children Task Force.  Special Assistant United States Attorney Alicia J. Yass, a Trial Attorney with the Child Exploitation and Obscenity Section of the Justice Department’s Criminal Division, is 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.usdoj.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 http://pacer.uspci.uscourts.gov.
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RICHMOND MAN CONVICTED OF DISCHARGING FIREARM DURING DRUG
TRANSACTION AT SPOTSYLVANIA TOWN CENTER MALL

RICHMOND, Va. – Travis Doug Burley, 26, of Richmond, Virginia, was found guilty yesterday of using and possessing a firearm during and in relation to a drug trafficking offense.  The jury also unanimously found that the firearm had been discharged during the offense.  Following the jury’s verdict, Judge Gibney immediately remanded Burley into the custody of the United States Marshals Service.  He faces a 10-year mandatory minimum sentence, and a maximum possible sentence of life imprisonment, when he is sentenced on July 23, 2013. 

            Neil H. MacBride, United States Attorney for the Eastern District of Virginia; and Carl Vasilko, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Washington Field office, made the announcement.  

According to evidence at trial, on July 11, 2012, Burley contacted a Spotsylvania-area man, Matthew Johnson, to purchase four ounces of high grade marijuana.  Burley, who was previously unknown to Johnson, used a mutual friend named Ronnie Morgan, Jr., to broker the deal.  Morgan and Johnson negotiated the transaction through a text message conversation, and eventually agreed to meet that evening in the Spotsylvania Town Center Mall, near the Costco store.  When Johnson arrived at the Mall, he parked near a car he saw containing his friend Morgan, the defendant Burley, and a third unidentified man. 

Immediately after Johnson parked his car, Burley got into the passenger seat, brandished a handgun and told Johnson, “You know what this is about” and demanded that Johnson give him the drugs.  Johnson, who did not know Burley, denied having anything, which prompted Burley to hit Johnson repeatedly with one fist while holding a .40 caliber Smith & Wesson semiautomatic pistol in the other.  Johnson grabbed the handgun, which discharged while the men struggled over it.  A single bullet injured both Burley in the hand and Johnson in the hand and left calf. 

Johnson drove a short distance from the scene and attempted to hide the marijuana, and further lied to investigators during his initial 911 call.  However, when later confronted by investigators with various items of evidence, including text messages from his cell phone, he agreed to cooperate.  Johnson, who still has pending drug distribution charges in Spotsylvania County, acknowledged his guilt during his testimony, without the benefit of any immunity or plea agreement from local prosecutors.

During the struggle in Johnson’s car, Ronnie Morgan, Jr, stood outside of Johnson’s car looking in.  After Burley’s handgun went off during the fight, both Morgan and the third, unidentified man fled the scene prior to police arriving.  Morgan, who was a long-time associate of Burley, was subpoenaed to testify before a federal grand jury, during which he lied that he knew who Burley was when shown photographs of his friend.  Morgan later pleaded guilty to perjury as a result of those false statements, and is scheduled for sentencing on May 14, 2013, before Judge Gibney.  Morgan was not called as a witness during the trial.

            The investigation was conducted by the Richmond Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Spotsylvania County Sheriff’s Office.  Mr. MacBride and Special Agent Vasilko wish to acknowledge the significant assistance provided by the offices of Spotsylvania County Commonwealth’s Attorney, William F. Neely, and Spotsylvania County Sheriff, Roger L. Harris, during the federal phase of this investigation.  Assistant United States Attorney Brian R. Hood 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.
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ALEXANDRIA, Va. – AH Computer Consulting, Inc. (AH, Inc.), an international information technology consulting firm based in Rockville, Maryland, pleaded guilty today to having paid thousands of dollars in bribes to Gene Quarles, a former official with the United States Postal Service, in exchange for Quarles’ official assistance in obtaining and facilitating government contracts for that company.  The company’s CEO-Managing Director, Heba Elaraby, 42, of Gaithersburg, Md., also admitted to having paid bribes and entered into a Deferred Prosecution Agreement with the United States earlier today.  The company’s CEO-Technical Director, Adel Elaraby, 45, of Gaithersburg, Md., pleaded guilty to the same offense on April 19, 2013.  Quarles previously pled guilty to bribery of a public official on February 14, 2013, and is scheduled for sentencing on May 17, 2013. 

            Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and 
Special Agent in Charge Tom Frost of the U.S. Postal Service, Office of Inspector General, made the announcement after the pleas were entered in United States District Court for the Eastern District of Virginia.

          AH, Inc., Heba Elaraby, and Adel Elaraby were all charged, through a criminal information, with bribery of a public official.  AH, Inc. faces a maximum penalty of a $250,000 fine and 5 years of probation when it is sentenced on July 26, 2013.  Adel Elaraby faces a maximum penalty of 15 years’ imprisonment and 3 years of supervised released when he is sentenced on the same date. 

            In a statement of facts filed with their plea agreements, both AH, Inc. and Adel Elaraby admitted that, in April 2010, the Elarabys approached Quarles and offered to pay him bribes in exchange for various impermissible contracting preferences and advantages.  Quarles accepted this offer, and from in or about April 2010 through in or about June 2012, AHCC employees paid Quarles numerous cash payments—totaling several thousands of dollars—in exchange for Quarles’ providing advantages to AHCC during the USPS contracting process.  For example, Quarles provided AHCC with confidential USPS contracting information, so that AHCC could tailor its bids to what other potential contractors were bidding.  In addition, Quarles forwarded various private call-in numbers for conference calls between USPS officials, where official business was discussed, so that AHCC employees could anonymously listen in and get a leg-up on their competition.  Quarles also allowed AHCC employees to complete surveys, evaluations, and other review materials in Quarles’ own name so that AHCC could obtain additional government contracts. 

            This case was investigated by the United States Postal Service, Office of Inspector General.  Assistant United States Attorney Chad Golder 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. – Jeffery S. Adams, 41, of Hudgins, Va., was sentenced today to 180 days home confinement with electronic monitoring, followed by three years of probation for violating the Lacey Act by trafficking in illegally-harvested striped bass.  Adams’ corporation, Adams Fishing Adventures, Inc., was sentenced to three years of probation.  One of the conditions of their probation is the requirement to acquire and maintain Vessel Monitoring Units on all vessels owned or operated by them.

David Dwayne Scott, 41, of Lusby, Md., was also sentenced today for trafficking in illegally-harvested striped bass, in violation of the Lacey Act.  Scott was sentenced to three years of probation, a $5,600 fine payable to the Lacey Act Reward Account, and ordered to pay $1,900 restitution to NOAA. One of the conditions of his probation is the requirement that he cannot engage in either charter or commercial fishing industry anywhere in the world, in any capacity to include captaining or mating on a vessel or performing any services in support of a charter or commercial fisherman.

Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Logan Gregory, Special Agent in Charge for NOAA’s Office of Law Enforcement’s Northeast Division, made the announcement after sentencing by United States District Judge Mark S. Davis.

On January 19, 2013, Adams and Adams Fishing Adventures pled guilty to violation of the Lacey Act in the United States District Court in Norfolk, Va.  The Lacey Act, among other things, makes it unlawful for any person to transport, sell, receive, acquire or purchase any fish or wildlife taken, possessed, transported or sold in violation of any law or regulation of the United States.

According to the plea agreement, Adams and Adams Fishing Adventures, Inc., admitted that they sold a chartered Striped Bass fishing trip on January 19, 2010, for $800.  As part of that trip, Adams knowingly took his charter clients into the Exclusive Economic Zone (EEZ) to harvest striped bass, even though Adams knew that it was a violation of federal law to harvest striped bass inside the EEZ.  Adams’ clients illegally harvested 10 striped bass within the EEZ and Adams transported the illegally harvested striped bass back to Rudee Inlet in Virginia Beach, Va.  According to other documents filed in connection with the sentencing, Adams and Adams Fishing Adventures, Inc., routinely harvested striped bass illegally from within the EEZ from 2007 to 2013.  Since 1990, federal law has made it unlawful to fish, catch, or possess striped bass in the Exclusive Economic Zone (EEZ).  The laws were passed in response to a decline in the striped bass populations in the late 1970’s and are designed to protect and preserve striped bass for future generations.

In a statement of facts filed with Scott’s plea agreement, Scott admitted that on February 7, 2009, he took a charter fishing trip into the Exclusive Economic Zone (EEZ) to fish for striped bass and when approached by law enforcement, 19 striped bass were dumped overboard in an attempt to avoid detection by law enforcement.

The cases were investigated by NOAA’s Office of Law Enforcement and the Virginia Marine Police with assistance from the Federal Communications Commission Enforcement Bureau, Norfolk Office.  Assistant U.S. Attorney Stephen W. Haynie of the United States Attorney’s Office for the Eastern District of Virginia and Trial Attorney James B. Nelson of the Department of Justice’s Environmental Crimes 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. - Kathleen D. McGrade, age 64, and Brian C. Collinsworth, age 46, both of Fredericksburg, Va., were indicted by a federal grand jury today on charges stemming from an alleged secret scheme to steer more than $60 million in State Department contracts to a company they controlled. 

            Neil H. MacBride, United States Attorney for the Eastern District of Virginia, Harold W. Geisel, Deputy Inspector General for the Department of State, and Thomas J. Kelly, Special Agent In Charge for IRS Criminal Investigation made the announcement after the indictment was returned. 

McGrade and Collinsworthface a maximum penalty of 20 years imprisonment, if convicted. 

            According to the indictment, from at least December 2007 through August 2011, McGrade was a private contract employee assigned to work as a contract specialist at the U.S. Department of State, in its Office of Acquisition Management located in Arlington, Virginia.  In that position, McGrade assisted in and oversaw the process for awarding and implementing contracts to companies performing work at various U.S. foreign service posts, including U.S. embassies located around the world.  During this same period, McGrade and Collinsworth controlled a Virginia company called the Sterling Royale Group, LLC (SRG), for which McGrade, acting through her position at the State Department, caused to be issued an Indefinite Duration, Indefinite Quantity (IDIQ) contract with the State Department.  During the course of the scheme, Collinsworth acted as SRG’s vice president.  According to the indictment, McGrade and Collinsworth, who were married, actively concealed their marriage and McGrade’s involvement in SRG from officials at the Department of State.  Further, McGrade allegedly misled other State Department officials to believe she was a Contracting Officer while approving payments to SRG.  All told, McGrade’s role in the scheme allegedly resulted in SRG being awarded approximately 17 task orders.  Prior to the scheme being discovered, SRG had submitted invoices resulting in $39 million in payments.  Finally, the indictment alleges that McGrade and Collinsworth used the proceeds of their scheme to purchase a 41 foot boat, a home, a penthouse condominium, and a Lexus automobile, among other things. 

            This case is being investigated by the Office of the Inspector General for the Department of State and the Criminal Investigation Section of the Internal Revenue Service.  Assistant United States Attorneys Jack Hanly and Mark D. Lytle are prosecuting the case on behalf of the United States.

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

A copy of this press release may be found on the website of the 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 Tallman, 53, a merchant mariner on the USNS Laramie stationed in Norfolk, Va., has pleaded guilty to transportation of child pornography.  

            Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and John P. Torres, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Washington, D.C., made the announcement after the plea was accepted by United States Magistrate Judge Douglas Miller. 

            Tallman was indicted on February 21, 2013, by a federal grand jury on charges of transportation, receipt and possession of child pornography.  Tallman faces a minimum penalty of 5 years in prison and a maximum penalty of 20 years in prison when he is sentenced on July 24, 2013.

            According to a statement of facts filed with his plea agreement, Tallman was identified as making payments to persons in the Philippines for live streaming videos and images of child pornography.  Tallman would chat with the women online, and they would live-stream pornographic images of themselves and of the sexual abuse of minors on the Internet or send him images by e-mail.  Tallman had a large collection of child pornography with him at the time of port entry into Norfolk and most of the children appeared to be of Pacific Asian descent.

            This case was investigated by Homeland Security Investigations.  Assistant United States Attorney Elizabeth M. Yusi is prosecuting the case on behalf of the United States.

A copy of this press release may be found on the website of the 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. – Abeselom Hailemariam, 33, of Alexandria, Va., pleaded guilty today for his participation in a conspiracy to steal approximately $1.4 million of visitor parking fees when he was employed by Parking Management, Inc., (PMI), the company contracted to manage parking services at the Smithsonian Institution’s Steven F. Udvar-Hazy Center in Chantilly, Va.

Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Scott S. Dahl, Inspector General for the Smithsonian Institution; and Valerie Parlave, Assistant Director in Charge of the FBI Washington Field Office, made the announcement after the plea was accepted by United States District Judge T.S. Ellis, III.   

            The plea follows Hailemariam’s March 5, 2013, arrest at Dulles International Airport by agents of the Smithsonian Office of Inspector General and Federal Bureau of Investigation.
Hailemariam faces a maximum penalty of five years in prison when he is sentenced on July 19, 2013.
Hailemariam was a full-time location manager for PMI, which managed the 2,000-vehicle parking lot at the Udvar-Hazy Center.  Between March 2009 and July 2012, Hailemariam supervised the PMI booth attendants at the location, accounted for revenues from visitor vehicles that entered the parking lot, and submitted operations reports to PMI and the Smithsonian.  Over the course of three years, Hailemariam and several booth attendants at the site conspired to steal cash entrance fees paid by tens of thousands of museum visitors.  With Hailemariam’s knowledge and approval, the booth attendants withheld parking ticket stubs from paying customers and unplugged electronic vehicle counters in the entrance booths.  At the end of each shift, these attendants would submit false shift summary report to Hailemariam that under-reported the number of vehicles which had entered the parking lot.  Hailemariam compiled the fraudulent data and submitted falsified reports to PMI, which were provided to the Smithsonian.  Some of the booth attendants paid Hailemariam a share of the stolen revenues at the end of the day by bundling unreported cash with the shift summary reports.  Hailemariam also gave instructions to conspiring booth attendants to stop stealing at certain times when the co-conspirators believed the risk of detection of the conspiracy was high.  The total loss due to the conspiracy is at least $1,383,195.  Based on the $15 entrance fee, it is estimated that Hailemariam participated in a conspiracy that stole from at least 92,213 visitor vehicles over the course of the crime.

Prior to today’s guilty plea, former PMI employees Meseret Terefe, 37, of Silver Spring, Md. and Freweyni Mebrahtu, 46, of Sterling, Va., were also convicted and have been sentenced to 20 months and 27 months in prison, respectively, for their roles in the thefts. 
   
The investigation was initiated by the Smithsonian Office of the Inspector General and jointly investigated with the Federal Bureau of Investigation.  Assistant United States Attorney Jasmine Yoon and Special Assistant United States Attorney James McDonald are prosecuting the case on behalf of the United States.

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

RICHMOND, Va. – Carlos Edward Gomez37, of Le Marque, Texas, was sentenced today to 178months in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute over five kilograms of cocaine hydrochloride and one kilogram of heroin.   

            Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Ava A. Cooper-Davis, Special Agent in Charge, of the Washington Field Division of the Drug Enforcement Administration, made the announcement after sentencing by United States District Judge Henry E. Hudson.  Gomez pleaded guilty to the charge on January 11, 2013. 

According to court documents, from June 2011, through August 22, 2012, Gomez and others supplied over 15 kilograms of cocaine hydrochloride and over 10 kilograms of heroin from Galveston, Texas, to drug traffickers in the Eastern District of Virginia and elsewhere for redistribution.  During the course of the investigation, law enforcement seized over four kilograms of cocaine hydrochloride, over six kilograms of heroin, over four pounds of marijuana, over $305,000 in drug proceeds, firearms, and numerous vehicles used to transport illegal narcotics and proceeds from drug sales. 

            Gomez, who the Court found today to be an organizer and supervisor in this drug operation, was the last of the coconspirators to be sentenced.  The others included:

Miguel Alejandro Gomez, 38, of Mexico, sentenced to 144 months on April 12, 2013; Ralph Garcia, 48, of Galveston, Texas, sentenced to 72 months on March 26, 2013; Robert Reyes, 32, of Galveston, Texas, sentenced to 156 months on August 28, 2012; Wilfred Blair, 38, of Fredericksburg, Virginia, sentenced to 276 months on September 14, 2012; and
Duane Brooks Jefferson, 39, of Richmond, Virginia, sentenced to 210 months on November 5, 2012.

            This case was investigated by the DEA Offices in Richmond, Virginia, and Galveston, Texas, and the Richmond Police Department, with the expert assistance of the Virginia State Police Counter-Terrorism and Criminal Interdiction Unit.  Assistant United States Attorney Olivia L. Norman 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. – Robert Chin, 66, of Silver Spring, Maryland, was sentenced today to 150months in prison and a $7,000 fine, followed by a five year term of supervised release, for distributing heroin and oxycodone to numerous young women, including one minor with whom he exchanged narcotics for sex acts.

Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and Stephen M. Hudson, Chief of the Prince William County Police Department, made the announcement after sentencing by United States District Judge T.S. Ellis, III.

            Chinpleaded guilty to enticement of a minor in violation of 18 U.S.C. 2422(b) and distribution of heroin in violation of 21 U.S.C. 841(a)(1) and 846 on January 4, 2013.

According to court documents, between 2008 and 2012, Chin distributed heroin and oxycodone to eight or more women, including a minor.  In exchange for the narcotics, Chin either had these women engage in sex acts with him or in his presence.  On one occasion in 2008, Chin rented a hotel room in Woodbridge, Virginia, and provided the minor with heroin.  He then attempted to have sexual intercourse with her.  On another occasion in June of 2012, Chin rented a hotel room in Woodbridge, Virginia, where he provided heroin and oxycodone to the same minor.  After providing the minor with narcotics, Chin filmed her as she engaged in sexual activity with three adults. 

This case was investigated by the FBI’s Washington Field Office and the Prince William County / Manassas City / Manassas Park Narcotics Task Force.  Assistant United States Attorney Matt J. Gardner 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.usdoj.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 http://pacer.uspci.uscourts.gov.

ALEXANDRIA, Va. – Benjamin F. Weatherly, 31, of Washington, DC, was sentenced today to a total of 120 months in prison, followed by 2 years of supervised release, for conspiracy to commit bank fraud and aggravated identity theft. Weatherly was also ordered to forfeit and pay restitution in the amount of $110,495.57.

        Neil H. MacBride, United States Attorney for the Eastern District of Virginia, Gary R. Barksdale, Postal Inspector in Charge of the U.S. Postal Inspection Service Washington Division, made the announcement after sentencing by United States District Judge Anthony J. Trenga.

According to court documents, Weatherly conspired with others to obtain and use, without lawful authority, credit cards and credit card convenience checks issued to other people.  The conspirators obtained these credit cards and credit card convenience checks by stealing mail.  Weatherly and his co-conspirators also used stolen personal identifying information to apply for and obtain additional credit cards.  The conspirators deposited fraudulently executed stolen credit card convenience checks into bank accounts that they controlled.  Further, they used the stolen and fraudulently obtained credit cards to make purchases in the Eastern District of Virginia and elsewhere.  Weatherly and his conspirators also filed fraudulent tax returns, caused fraudulent tax refunds to be issued in the name of at least one individual whose mail they had stolen, and deposited the returns into a fraudulently opened bank account.  On January 3, 2013, Weatherly pleaded guilty to two counts of an indictment charging him with conspiracy to commit bank fraud and aggravated identity theft.

        This case was investigated by the United States Postal Inspection Service.  Special Assistant United States Attorney Kyle Maurer, Assistant United States Attorney Kosta S. Stojilkovic, and former Special Assistant United States Attorney Stacy L. Bogert 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.usdoj.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 http://pacer.uspci.uscourts.gov.

RICHMOND, Va. –Loveleen Khare, 56, of Powhatan, Va., pleaded guilty today to conspiring to structure more than $10,000,000 in cash transactions for the purpose of preventing banking institutions from reporting those transactions to the Internal Revenue Service (IRS).   

            Neil H. MacBride, United States Attorney for the Eastern District of Virginia; John P. Torres, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Washington, D.C.; and Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service Criminal Investigation’s Washington, D.C., Field Office, made the announcement after the plea was accepted by United States District Judge Henry E. Hudson.

            Khare was charged by criminal information filed on March 28, 2013, and faces a maximum penalty of five years in prison when she is sentenced on July 19, 2013.   

            According to a statement of facts filed with the plea agreement, Khare, along with her co-conspirator Jayant J. Khare, owned and operated two cigarette retail stores known as Cigarettes America Plus and Cigarettes America at Westchester.  Khare admitted that from October 2011 to December 2012, she and Jayant Khare conspired to structure over $10,000,000 in U.S. currency by splitting up cash deposits into accounts maintained at six banks, all in an effort to prevent the banks from filing Currency Transaction Reports with the IRS, which must be filed on cash deposits of $10,000 or greater.  The structured cash was obtained by selling large quantities of cigarettes to out-of-state individuals who were known to be transporting the cigarettes to locations outside of the Commonwealth of Virginia for resale.  The sales took place at Khare’s personal residence and from the back door of the retail stores. 

            This case was investigated by HSI, the Internal Revenue Service - Criminal Investigation, and the Tobacco Enforcement Unit of the Office of the Attorney General of Virginia.  Assistant United States Attorneys Dominick S. Gerace and Laura Colombell Marshall 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. – Parker Drilling Company, a publicly listed drilling-services company, headquartered in Houston, has agreed to pay an $11.76 million penalty to resolve charges related to the Foreign Corrupt Practices Act (FCPA) for authorizing payment to an intermediary, knowing that the payment would be used to corruptly influence the decisions of a Nigerian government panel reviewing Parker Drilling’s adherence to Nigerian customs and tax laws.  U.S. Attorney Neil H. MacBride for the Eastern District of Virginia and Acting Assistant Attorney General Mythili Raman of the Criminal Division announced the charges.

The investigation of Parker Drilling stemmed from the Justice Department’s Panalpina-related investigations, which previously yielded criminal resolutions with Panalpina and five oil and gas service companies and subsidiaries and resulted in more than $156 million in criminal penalties. 

Today, the department filed a deferred prosecution agreement and a criminal information against Parker Drilling in U.S. District Court for the Eastern District of Virginia.  The one-count information charges Parker Drilling with violating the FCPA’s anti-bribery provisions.

According to court documents, in 2001 and 2002, Panalpina World Transport (Nigeria) Limited, working on Parker Drilling’s behalf, avoided certain costs associated with complying with Nigeria’s customs laws by fraudulently claiming that Parker Drilling’s rigs had been exported and then re-imported into Nigeria.  In late 2002, Nigeria formed a government commission, commonly called the Temporary Import (TI) Panel, to examine whether Nigeria’s Customs Service had collected certain duties and tariffs that Nigeria was due.  In December 2002, the TI Panel commenced proceedings against Parker Drilling.  The TI Panel later determined that Parker Drilling had violated Nigeria’s customs laws and assessed a $3.8 million fine against Parker Drilling.

According to court documents, rather than pay the assessed fine, Parker Drilling contracted indirectly with an intermediary agent to resolve its customs issues.  From January to May 2004, Parker Drilling transferred $1.25 million to the agent, who reported spending a portion of the money on various things including entertaining government officials.  Emails in which the agent requested additional money from Parker Drilling referenced the agent’s interactions with Nigeria’s Ministry of Finance, State Security Service, and a delegation from the president’s office.  Two senior executives within Parker Drilling at the time reviewed and approved the agent’s invoices, knowing that the invoices arbitrarily attributed portions of the money that Parker Drilling transferred to the agent to various fees and expenses.  The agent succeeded in reducing Parker Drilling’s TI Panel fines from $3.8 million to just $750,000. 

Under the terms of the agreement, the Justice Department agreed to defer prosecution of Parker Drilling for three years.  Parker Drilling agreed, among other things, to implement an enhanced compliance program and internal controls capable of preventing and detecting FCPA violations, to report periodically to the department concerning Parker Drilling’s compliance efforts, and to cooperate with the department in ongoing investigations.  If Parker Drilling abides by the terms of the deferred prosecution agreement, the department will dismiss the criminal information when the term of the agreement expires. 

In entering into the deferred prosecution agreement with Parker Drilling, the Justice Department took into account a number of considerations.  Parker Drilling conducted an extensive, multi-year investigation into the charged conduct; engaged in widespread remediation, including ending its business relationships with officers, employees, or agents primarily responsible for the corrupt payments, enhancing scrutiny of high-risk third-party agents and transactions, increasing training and testing requirements, and instituting heightened review of proposals and other transactional documents for all the company’s contracts; otherwise significantly enhanced its compliance program and internal controls; and agreed to continue to cooperate with the department in any ongoing investigation of the conduct.

Parker Drilling also reached a settlement of a related civil complaint filed by the U.S. Securities and Exchange Commission (SEC) charging Parker Drilling with violating the FCPA’s anti-bribery, books and records, and internal controls provisions.  As part of that settlement, Parker Drilling agreed to pay $3.05 million in disgorgement and $1.04 million in prejudgment interest relating to those violations.

The criminal case is being prosecuted by Assistant U.S. Attorney Jasmine Yoon of the U.S. Attorney’s Office for the Eastern District of Virginia and Trial Attorney Stephen J. Spiegelhalter of the Criminal Division’s Fraud Section, and is being investigated by the FBI. The department’s Office of International Affairs assisted in the investigation.  The department also acknowledges and is grateful for the assistance of the Crown Prosecution Service, the United Kingdom’s Metropolitan Police Service, and SEC.

Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.

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. – Members of a violent and highly sophisticated jewelry theft ring pleaded guilty this week for their participation in a racketeering conspiracy. 

            Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; and Carl J. Vasilko, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after multiple pleas were entered this week.

Lucesita Argueta, 33, aka “Lucy,” of Richmond, Va., pleaded guilty on Monday before U.S. Magistrate Judge Tommy Miller in the Eastern District of Virginia to racketeering conspiracy.  Jose Alfredo Rivero-Garcia, 52, aka “Alfredo” and “Jose Ribero,” of Richmond, pleaded guilty on Thursday before U.S. Magistrate Judge Douglas Miller in the Eastern District of Virginia to racketeering conspiracy.  Luis Muchado, 33, of Henrico, Va., pleaded guilty today before U.S. Magistrate Judge Douglas Miller in the Eastern District of Virginia to racketeering conspiracy. 

            According to court documents, Alexander Cuadros-Garcia, aka “Alex,” “Brujo,” “Aleto” and “Manuel Gonzalez”, 37, of Richmond, led an organized criminal group that stole more than $4.6 million in jewelry from victims in Virginia and at least six other states.  In March 2012, Cuadros-Garcia, Argueta, Rivero-Garcia, and Muchado were charged along with four other individuals who were members of the Richmond-based ring that regularly conducted lengthy surveillance on jewelry stores to identify vulnerable individuals and then follow their targets back to the individuals’ hotel or home.   

In most of the robberies, several men would suddenly appear as the victims approached or entered their car, punch out the car’s windows, threaten the victims at knife-point and steal the victims’ merchandise.  In addition, the robbers would puncture the victims’car tires and steal their cell phones to reduce the chance of pursuit or apprehension.  After a successful robbery, members of the ring would travel to New York to sell the merchandise to businessmen who coordinated re-selling the stolen property or melting it down for future use. 

At sentencing, Argueta, Rivero-Garcia, and Muchado each face a maximum penalty of 20 years in prison. 

This week’s guilty pleas follow the guilty plea of Cuadros-Garcia, on March 29, 2013, and sentencings of Raul Antonio Escobar-Martinez, on March 7, 2013, and William Leandro Herrera-Bohorquez, on March 14, 2013, who both previously pleaded guilty for their roles in the theft ring.  Escobar-Martinez and Herrera-Bohorquez were each sentenced to serve 87 months in prison, followed by three years of supervised release. ​

The investigation of this case was led by the ATF’s Washington Field Division, with the assistance of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the police departments in Williamsburg, Virginia Beach, Henrico County, Chesterfield, Prince William County and Fairfax County in Virginia, along with the Virginia State Police; the Baltimore County, Md., Police Department; the Port Authority of New York and New Jersey; the New York City Police Department; and the police departments in Rutherford, N.J., and Gwinnett County, Ga.; and the Morris County, N.J. Prosecutor’s Office.   

​
Assistant U.S. Attorney Eric M. Hurt of the Eastern District of Virginia and Trial Attorney Jerome M. Maiatico of the Criminal Division’s Organized Crime and Gang 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.

ALEXANDRIA, Va. – Hamada Makarita, 51, of Oakton, Va. was sentenced to 25 months in prison, followed by a term of supervised release for using his position as a dentist to illegally distribute prescription medication and for using the identity of another dentist to fraudulently bill an insurance company for more than $160,000 in claims.

Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the sentencing by United States District Judge Leonie M. Brinkema. 

On November 16, 2012, after a multi-week trial, Makarita was found guilty by jury on multiple counts to include conspiracy, health care fraud, aggravated identity theft, and five counts of dispensing controlled substances.

According to court records and evidence at trial, Makarita owns and operates a dental practice in Oakton, Va., and advertised online at http://www.fixasmile.com/. From about 2007 to 2012, Makarita illegally distributed and dispensed prescription medicine (Fentanyl, Vicodin, and Valium) to patients, employees, and at least one girlfriend, all without a legitimate dental purpose and beyond the bounds of a dental practice. Makarita directed those who received the prescriptions he issued to return to him some or all the prescribed medicine. On multiple occasions, Makarita would distribute prescription pills to patients and at least one girlfriend in social settings and for sexual purposes. On one occasion, the defendant took explicit photographs of an unconscious girlfriend who was under the influence of alcohol and Vicodin.

In addition, the jury found that Makarita provided more than $160,000 in services to his family members and billed them to an insurance provider in violation of the provider’s contract. He billed the services under the name of another dentist who did not practice in Makarita’s office at that time. Makarita received more than $91,000 in reimbursement from the provider for these fraudulent claims.

The investigation was conducted by the FBI’s Washington Field Office. Special Assistant U.S. Attorneys Mazen M. Basrawi and Danya E. Atiyeh and Assistant U.S. Attorney Gene Rossi prosecuted the case on behalf of the United States.

This case is part of an Organized Crime and Drug Enforcement Task Force (“OCDETF”) investigation (Operation “Cotton Candy”), which has been focusing on the illegal distribution by numerous doctors, pharmacists, nurses, and patients of pain medication. This OCDETF matter has secured more than 200 drug-trafficking convictions.

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. – Daniel A. Vivas, 40, of Oklahoma City, Okla. was sentenced today to 27 months in prison for his role in a bank fraud conspiracy that caused more than $2.5 million in losses to various banks and mortgage lenders. 

             Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Jon T. Rymer, Inspector General of the Federal Deposit Insurance Corporation (FDIC); and John P. Torres, Special Agent in Charge for ICE’s Homeland Security Investigations (HSI) in Washington, D.C., made the announcement after sentencing by United States District Judge Liam O’Grady. 

            Vivas pleaded guilty on January 18, 2013, to conspiracy to commit bank fraud.  According to court documents, in 2005 and 2006, Vivas was a loan officer for Home Savings & Trust Mortgage at its office in Fairfax, Virginia.  As a loan officer, Vivas was responsible for “originating” loans, that is, generating business for Home Savings by marketing its residential loan products and by taking residential mortgage loan applications from borrowers who were seeking a loan. 

            As part of a scheme, Vivas and his co-conspirators submitted fraudulent “tax preparer letters” to support false statements in Vivas’s clients’ loan applications that falsely represented the borrowers’ employment, income, and/or assets.  The tax preparer letters falsely claimed that a tax professional had prepared the borrower’s tax returns for the preceding two tax years, that the borrower was self-employed, and that the borrower owned his own business.  He would also fill in the name of a fictitious business entity supposedly owned by the borrowers.

            In most cases, Vivas and his co-conspirators gave these false statements and documents to the lenders without their clients’ knowledge.  When the borrowers were unable to sustain the monthly payments on their loans, the consequence for many was foreclosure and eviction.

            Vivas is the latest defendant to be sentenced in a series of prosecutions of the conspirators.  Four tax professionals have also been found guilty, including Osvaldo A. Mercado, the owner of Union Hispana Multiservices, a large tax preparation service operating in Northern Virginia.  On June 8, 2012, Mercado was sentenced to 24 months in prison.

            This ongoing investigation is being conducted by the FBI’s Washington Field Office, the FDIC Office of Inspector General, and ICE-HSI. Assistant United States Attorney James P. Gillis 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. – Michael Winston Baynes, 60, of Richmond, Va., was sentenced today to 70months in prison and a $2,500 fine, followed by 10 years of supervised release, for Receipt of Child Pornography, in violation of 18 U.S.C. § 2252A(a)(2)(A).

            Neil H. MacBride, United States Attorney for the Eastern District of Virginia, made the announcement after sentencing by United States District Judge Henry E. Hudson.  Baynes pled guilty on January 4, 2013.

            According to court documents, Baynes ordered a two-disc set of child pornography on the internet from a Canadian company.  A search warrant executed at his home uncovered an additional seven discs of child pornography movies.  Much of Baynes’s former employment involved extensive contact with children, including work at a private school in Henrico County and for a county recreation department.

            This case was investigated by the United States Postal Inspection Service and is part of Operation Spade.  Assistant United States Attorney Jessica Aber Brumberg 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. – Ramy Elmery, 43, of Woodbridge, Va., pleaded guilty today to one count of false statements stemming from his failure to disclose a series of financial transactions with an Iraqi contractor in an application for top secret security clearance.

            Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Stuart W. Bowen, Special Inspector General for Iraq Reconstruction; and Robert Craig, Special Agent in Charge for Defense Criminal Investigative Service Mid-Atlantic Field Office, made the announcement after the plea was accepted by United States District Judge T.S. Ellis, III.

            Elmery faces a maximum penalty of five years in prison when he is sentenced on July 12, 2013.  

            In a statement of facts filed with his plea agreement, Elmery admitted that, while he was stationed in Iraq in 2007, he performed interpretation services in contract negotiations between the U.S. Army and an Iraqi contractor.  In 2008, Elmery returned to the United States and asked the Iraqi contractor to pay him $500,000.  At Elmery’s instruction, the contractor began wiring payments to an Egyptian bank account that belonged to Elmery’s brother.  Elmery then opened an Egyptian bank account in his own name and received a payment into that account as well.  In total, Elmery received approximately $47,000 from the Iraqi contractor. 

            In 2011, Elmery applied for top secret security clearance in conjunction with a defense contractor position.  In his application, he failed to disclose the relationship with the Iraqi contractor and claimed that he had no foreign bank accounts.  In an interview subsequent to submitting the application, Elmery again failed to disclose the relationship with the Iraqi contractor or the existence of the foreign bank accounts.

            Pursuant to the plea agreement, Elmery also will forfeit the money he obtained from the Iraqi contractor.

            This case was investigated by the Federal Bureau of Investigation, the Defense Criminal Investigative Service, the Major Procurement Fraud Unit of the U.S. Army Criminal Investigation Command, and the Special Inspector General for Iraq Reconstruction (SIGIR).  Assistant United States Attorney Kosta S. Stojilkovic of the Eastern District of Virginia and Special Trial Attorney Mark Grider of the Justice Department Criminal Division’s Fraud Section, on detail from SIGIR, 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.usdoj.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 http://pacer.uspci.uscourts.gov.

ALEXANDRIA, Va. – Derek Matthews, 46, of Harwood, Md., pleaded guilty today to accepting bribes from a government contracting company in exchange for using his position to help the company find and win contracts. 

            Neil H. MacBride, United States Attorney for the Eastern District of Virginia, Mythili Raman, Acting Assistant Attorney General for the Justice Department’s Criminal Division, and Charles K. Edwards, U.S. Department of Homeland Security (DHS) Deputy Inspector General, made the announcement after the plea was accepted by United States District Judge Leonie M. Brinkema. 

            Matthews was charged by criminal information on April 11, 2013, with one count of conspiracy to commit bribery.  Matthews faces a maximum penalty of five years in prison when he is sentenced on July 19, 2013.           

            Matthews served as Deputy Assistant Director for Operations for the DHS’s Federal Protective Services (FPS) and was later promoted to FPS Regional Director for the National Capital Region.  In the fall of 2011, Matthews agreed with Keith Hedman, an executive at an Arlington, Va., security service consulting company referred to as Company B in court records, that in exchange for a monthly payment from Company B and a percentage of any new business obtained, Matthews would use his position to help Company B find and win U.S. government contracts, including with FPS.  Matthews engaged in a series of official acts, including lobbying of government officials and sharing of information with Hedman, in an effort to obtain business for Hedman and Company B. In turn, Hedman and Company B paid Matthews three monthly payments totaling $12,500.

            Hedman pleaded guilty on March 18, 2013, to conspiracy to commit bribery in connection with Matthews’ scheme, along with conspiracy to commit major government fraud as part of a separate scheme to fraudulently obtain more than $31 million in government contract payments that should have gone to disadvantaged small businesses.

            This case was investigated by the Washington Field Office for the DHS Office of the Inspector General (OIG), the National Aeronautics and Space Administration OIG, the Small Business Administration OIG, the Defense Criminal Investigative Service, and the General Services Administration OIG. Assistant United States Attorneys Chad Golder and Ryan Faulconer, a former Trial Attorney for the Criminal Division’s Fraud Section, are prosecuting the case on behalf of the United States.

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

Eastern District of Virginia – A member of the Internet piracy group “IMAGiNE” was sentenced today to serve 23 months in prison, announced U.S. Attorney for the Eastern District of Virginia Neil H. MacBride, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, and Special Agent in Charge John P. Torres of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) in Washington, D.C.

Javier E. Ferrer, 41, of New Port Richey, Fla., was sentenced by Senior U.S. District Judge Henry C. Morgan in the Eastern District of Virginia. In addition to his prison term, Ferrer was sentenced to serve three years of supervised release and ordered to pay $15,000 in restitution.

On Nov. 29, 2012, Ferrer pleaded guilty to one count of conspiracy to commit criminal copyright infringement.  Ferrer is the fifth member of the IMAGiNE Group who has been sentenced to prison for the copyright conspiracy. 

On Sept. 13, 2012, Ferrer was charged in a criminal information for his role in the IMAGiNE Group, an organized online piracy ring that sought to become the premier group to first release Internet copies of movies only showing in theaters.  Four other IMAGiNE Group members, including the group’s leader, were indicted on April 18, 2012, for their roles in the IMAGiNE Group. 

According to court documents, Ferrer and his co-conspirators sought to illegally obtain and disseminate digital copies of copyrighted motion pictures showing in theaters.  Ferrer actively participated in the IMAGiNE Group’s illegal efforts to film copyrighted motion pictures currently showing in theaters as his co-conspirators used receivers and recording devices to secretly capture audio sound tracks of copyrighted movies playing in movie theaters.  After the IMAGiNE Group obtained illegal copies of the audio and video portions of copyrighted motion pictures, Ferrer and his co-conspirators also engaged in processing or "encoding" the video files to enhance the picture quality and in synchronizing the audio files with the video files to make completed movies suitable for reproduction and distribution over the Internet, without the permission of the copyright owners. 

According to testimony by a representative of the Motion Picture Association of America, the IMAGiNE Group constituted the most prolific motion picture piracy release group operating on the Internet from September 2009 through September 2011.

Co-defendants Sean M. Lovelady, Willie O. Lambert, Gregory A. Cherwonik and Jeramiah B. Perkins pleaded guilty on May 9, June 22, July 11 and Aug. 29, 2012, respectively, to one count each of conspiracy to commit criminal copyright infringement, before U.S. District Judge Arenda L. Wright Allen in the Eastern District of Virginia.  Lambert and Lovelady were sentenced on Nov. 2, 2012, to serve 30 months and 23 months in prison, respectively. Cherwonik was sentenced on Nov. 29, 2012, to serve 40 months in prison.  Perkins, the leader of the group, was sentenced on Jan. 3, 2013, to 60 months in prison.

The investigation of the case and the arrests were conducted by agents with the HSI Washington, D.C., Field Office.  Assistant U.S. Attorney Robert J. Krask of the Eastern District of Virginia and Senior Counsel John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) are prosecuting the case. Significant assistance was provided by the CCIPS Cyber Crime Lab and the Criminal Division’s Office of International Affairs.

This case is part of efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force) to stop the theft of intellectual property. Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to www.justice.gov/iptf.

This investigation was supported by the HSI-led National Intellectual Property Rights Coordination Center (IPR Center) in Washington. The IPR Center is one of the U.S. government's key weapons in the fight against counterfeiting and piracy. Working in close coordination with the Department of Justice’s IP Task Force, the IPR Center uses the expertise of its 21-member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to IP theft. Through this strategic interagency partnership, the IPR Center protects the public's health and safety, the U.S. economy and our war fighters.

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. – Douglas Lee Payne Jr., 31, of Fairfax County, Va., pleaded guilty today to three child exploitation related charges. 

Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and Lt. Colonel James A. Morris, Acting Fairfax County Chief of Police made the announcement after the plea was accepted by United States District Judge Leonie M. Brinkema. 

Payne pleaded guilty to two counts of production of child pornography, which each carries a mandatory minimum penalty of 25 years and a maximum penalty of 50 years in prison.   This sentence has been enhanced due to a prior conviction of using a computer to solicit a minor in Fairfax County.  Payne also pleaded guilty to one count of attempted enticement of a minor, which carries a mandatory minimum of 10 years and a maximum of life in prison.  Sentencing is scheduled for July 5, 2013.

            According to court documents, during the investigation of a Fairfax County probation violation in December 2011, electronic communications between Payne and a minor victim in Indiana and another minor victim in Pennsylvania were discovered.  In these text messages and online chats, Payne requested that the minor victims send him nude images of themselves.  Payne also instructed the minor females on how to pose in various sexually revealing positions.  Payne possessed at least one child pornography image of each minor victim which they had sent in response to his request.  Payne and the minor victim located in Indiana also had specific conversations about Payne going to Indiana and having sex with her there.  On December 28, 2011, while Payne was on his way to Indiana, he was instructed to return home for a meeting with his Fairfax County probation officer.

            This case was investigated by the Fairfax County Police Department and the FBI Washington Field Office’s Child Exploitation Task Force.  Special Assistant United States Attorney Alicia J. Yass, a Trial Attorney with the Child Exploitation and Obscenity Section of the Justice Department’s Criminal Division, is 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.

ALEXANDRIA, Va. – A federal grand jury has charged Robert Mikail, 40, and Ging-Hwang “Felicia” Tsoa, 58, both of Ashburn, Va., with conspiracy and bank fraud charges related to their alleged roles in a $20 million mortgage fraud scheme involving more than 35 homes.

            Neil H. MacBride, 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.

If convicted, Mikail and Tsoa each face a maximum penalty of 30 years in prison on each count of the indictment. 

According to the seven-count indictment returned on April 4, 2013, Mikail owned a retail jewelry store in Ashburn, Va. known as Opus Jewelry, and Tsoa worked as a loan officer at First Empire Mortgage, in Fairfax, Virginia, and Lifetime Financial Services, in Herndon, Va. 

From 2005 to 2007, Mikail allegedly recruited individuals, known as “straw buyers,” to serve as nominal purchasers in real estate transactions as part of a scheme to profit from fraudulently obtained mortgage loans and the purchase of residential real estate in northern Virginia.  In order to get the straw buyers’ loan applications approved and the transactions closed, Mikail, working with Tsoa and other loan officers, allegedly falsified the straw buyers’ loan applications.  In particular, all of the fraudulent loan applications falsely designated Mikail’s Opus Jewelry as the borrowers’ employer, which Mikail would then falsely verify to the lenders as part of the loan approval process. 

In total, Mikail allegedly engineered the purchase of approximately 36 homes in Ashburn, Va., and obtained from lenders approximately $19,866,150 in loan proceeds on the basis of fraudulent loan applications.  While Mikail and Tsoa profited when these homes were purchased, all of the loans ultimately defaulted, resulting in significant losses to the lenders.

Alleged co-conspirator Bing-Sing “Cindy” Wang, the owner of Lifetime Financial Services, pleaded guilty to related charges on Nov. 20, 2012, and was sentenced to 24 months in prison on Feb. 26, 2013.

            The case is being investigated by the FBI’s Washington Field Office.  Assistant United States Attorney Paul J. Nathanson is prosecuting the case on behalf of the United States.

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

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

ALEXANDRIA, Va. – Robert Fenn, 27, of Herndon, Va., was convicted by a federal jury today of receiving and possessing child pornographyFenn was a special education teacher at Poplar Tree Elementary School in Chantilly, Va., prior to his arrest on related state charges in June 2012.

            Neil H. MacBride, United States Attorney for the Eastern District of Virginia; John P. Torres, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Washington, D.C.; and Lt. Colonel Edwin C. Roessler Jr., Acting Fairfax County Chief of Police, made the announcement after the verdict was accepted by United States District Judge James C. Cacheris. 

Fenn was convicted of one count of receipt of child pornography, which carries a mandatory minimum penalty of five years and a maximum penalty of 20 years in prison; and one count of possession of child pornography, which carries a maximum penalty of 10 years in prison. Fenn was taken into custody following his conviction and will remain in custody pending his sentencing, which is scheduled for June 21, 2013.

            According to court records and evidence at trial, Fenn was identified through an international initiative originated with Italian law enforcement that investigated a website offering access to child pornographic images and/or video files identified by the domain name “liberalmorality.com.” The website was hosted in the United States and HSI obtained Internet records showing each Internet account that accessed the website and the specific images each account accessed.

            Fenn taught special education at Poplar Tree Elementary School in Chantilly, Va. and gave private music lessons to children in their homes.  Fenn admitted an interest in girls between the ages of nine and 14, which corresponded to the ages of the victims of child pornography depicted in images and videos found on Fenn’s computers and external hard drives.

            This case was investigated by HSI’s Child Exploitation Section in the Washington Field Office and the Fairfax County Police Department.  Special Assistant United States Attorney Alicia J. Yass, a Trial Attorney with the Child Exploitation and Obscenity Section of the Justice Department’s Criminal Division, and Assistant United States Attorneys Lindsay Kelly and Jay Prabhu are prosecuting the case on behalf of the United States.

This case was brought as 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 the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”

            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. – Jeffery S. Adams, 41, of Hudgins, Va., was sentenced today to 180 days home confinement with electronic monitoring, followed by three years of probation for violating the Lacey Act by trafficking in illegally-harvested striped bass.  Adams’ corporation, Adams Fishing Adventures, Inc., was sentenced to three years of probation.  One of the conditions of their probation is the requirement to acquire and maintain Vessel Monitoring Units on all vessels owned or operated by them.

David Dwayne Scott, 41, of Lusby, Md., was also sentenced today for trafficking in illegally-harvested striped bass, in violation of the Lacey Act.  Scott was sentenced to three years of probation, a $5,600 fine payable to the Lacey Act Reward Account, and ordered to pay $1,900 restitution to NOAA. One of the conditions of his probation is the requirement that he cannot engage in either charter or commercial fishing industry anywhere in the world, in any capacity to include captaining or mating on a vessel or performing any services in support of a charter or commercial fisherman.

Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Logan Gregory, Special Agent in Charge for NOAA’s Office of Law Enforcement’s Northeast Division, made the announcement after sentencing by United States District Judge Mark S. Davis.

On January 19, 2013, Adams and Adams Fishing Adventures pled guilty to violation of the Lacey Act in the United States District Court in Norfolk, Va.  The Lacey Act, among other things, makes it unlawful for any person to transport, sell, receive, acquire or purchase any fish or wildlife taken, possessed, transported or sold in violation of any law or regulation of the United States.

According to the plea agreement, Adams and Adams Fishing Adventures, Inc., admitted that they sold a chartered Striped Bass fishing trip on January 19, 2010, for $800.  As part of that trip, Adams knowingly took his charter clients into the Exclusive Economic Zone (EEZ) to harvest striped bass, even though Adams knew that it was a violation of federal law to harvest striped bass inside the EEZ.  Adams’ clients illegally harvested 10 striped bass within the EEZ and Adams transported the illegally harvested striped bass back to Rudee Inlet in Virginia Beach, Va.  According to other documents filed in connection with the sentencing, Adams and Adams Fishing Adventures, Inc., routinely harvested striped bass illegally from within the EEZ from 2007 to 2013.  Since 1990, federal law has made it unlawful to fish, catch, or possess striped bass in the Exclusive Economic Zone (EEZ).  The laws were passed in response to a decline in the striped bass populations in the late 1970’s and are designed to protect and preserve striped bass for future generations.

In a statement of facts filed with Scott’s plea agreement, Scott admitted that on February 7, 2009, he took a charter fishing trip into the Exclusive Economic Zone (EEZ) to fish for striped bass and when approached by law enforcement, 19 striped bass were dumped overboard in an attempt to avoid detection by law enforcement.

The cases were investigated by NOAA’s Office of Law Enforcement and the Virginia Marine Police with assistance from the Federal Communications Commission Enforcement Bureau, Norfolk Office.  Assistant U.S. Attorney Stephen W. Haynie of the United States Attorney’s Office for the Eastern District of Virginia and Trial Attorney James B. Nelson of the Department of Justice’s Environmental Crimes Section are prosecuting the case on behalf of the United States.

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

RICHMOND, Va. – Eric Brown, 49, of Richmond, Va., was sentenced today to seven years in prison for stealing a truck that contained audio and visual equipment belonging to the office of the President of the United States. 

Neil H. MacBride, United States Attorney for the Eastern District of Virginia; David E. Beach, Special Agent in Charge of the United States Secret Service’s Washington Field Office; Jeffrey C. Mazanec, Special Agent in Charge of the FBI’s Richmond Field Office; D.A. Middleton, Chief of Police for the Henrico County Police Division; and Col. Thierry G. Dupuis, Chief of Police for Chesterfield County, made the announcement after sentencing by United States District Judge John A. Gibney.

            Court documents show that on Oct. 16, 2011, a truck containing audio equipment utilized by the President of the United States during public appearances was reported stolen in Henrico County.  The theft occurred at a hotel a few days prior to a speaking engagement that the President was attending in Central Virginia.  Video surveillance from the hotel depicted a dark-colored SUV driving into the hotel lot.  Shortly thereafter, the truck containing the President’s equipment was driven off of the lot.  Immediately thereafter, a dark-colored SUV followed the truck containing the President’s equipment off of the hotel lot.  This truck contained a laptop computer and other audio visual equipment bearing the Presidential seal, all of which had a value of approximately $200,000.

            As a part of the plea, Brown admitted to telling others about his role in the theft, selling the laptop, and possessing audio visual equipment that still bore the Presidential seal.  Additional facts in support of Brown’s guilty plea included cell tower data obtained by investigators that showed Brown was in the vicinity of the truck at the time it was stolen.  Some of the equipment was recovered from pawn shops in Prince Georges County, Maryland, and in Montgomery County, Maryland.

The investigation was conducted by the U.S. Secret Service, the FBI’s Richmond Field Office, the Henrico County Police Department, and the Chesterfield Police Department.  Assistant United States Attorney Roderick C. Young 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. – Tasheik Ashanti Champean, 46, of Suitland, Md., was sentenced today to 30 years in prison, followed by a three year term of supervised release, for his role in a 2010 robbery which resulted in the death of Jose Cardona. 

Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Lt. Colonel Edwin C. Roessler, Jr., Acting Fairfax County Chief of Police made the announcement after Sentencing by United States District Judge Anthony J. Trenga.

Champean pleaded guilty on December 7, 2012, to conspiracy to commit Hobbs Act robbery and use of a firearm during a crime of violence causing death.

According to court records, Champean conspired with Reynard Lazaro Prather and another man to rob the owner of a check-cashing facility at the store owner’s residence in Centreville, where the conspirators believed the target kept the store’s proceeds.

On May 17, 2010, Champean and Prather drove from Maryland to a shopping center in Virginia, where a third co-conspirator picked them up and dropped them off at the target’s residence.  Champean and Prather – both armed with semi-automatic pistols – entered the target’s garage to await the target’s arrival. When the owner’s son and an employee, Jose Cardona, attempted to access the garage, they were confronted by Champean and Prather.  The four men immediately engaged in a struggle over the intruders’ two firearms.  During the struggle, Cardona was shot and killed.

Prather was previously prosecuted in the Eastern District of Virginia for his role in the offense.  On June 1, 2012, Prather was also sentenced to 30 years in prison. 

This case was investigated by the Fairfax County Police Department.  Assistant United States Attorneys Michael Rich and Zachary 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.

WASHINGTON – Jeffrey Charles, a resident of Grimstead, Va., was sentenced today to serve 46 months in federal prison for conspiring with his daughter and son-in-law to defraud the United States, aiding and assisting in the preparation of false tax returns in his daughter’s name, and filing a false tax return in his own name, the Justice Department and the Internal Revenue Service (IRS) announced.

On Nov. 6, 2012, following a six-day jury trial in Newport News, Va., Charles was convicted of one count of conspiracy, three counts of aiding and assisting in the preparation of false tax returns, and one count of filing a false tax return. According to the evidence presented at trial, Charles, a registered nurse and the administrator of a rehabilitation center, conspired with his daughter and son-in-law to impair and impede the IRS in ascertaining, computing, assessing and collecting federal income taxes. The evidence also proved that Charles aided and assisted in the preparation of three false tax returns in his daughter’s name for tax years 2000, 2001 and 2005, and attached false documents to each tax return. 

Finally, the evidence at trial also established that Charles filed a false tax return in his own name for tax year 2006 in which he allegedly falsely reported earning $0.00 income. Charles joined American Rights Litigators (ARL), a Florida-based organization, and paid ARL to send fraudulent documents to the IRS on his behalf and on behalf of his daughter. In August 2004, a federal district judge permanently enjoined ARL and two of its promoters from the sale of a nationwide tax scam. In August of 2010, three promoters of ARL were each sentenced in the District of Columbia to 10 years in prison along with ARL founder Eddie Ray Kahn, who received a 20 year sentence.

Senior Judge Henry Coke Morgan Jr. also ordered Charles to pay over $300,000 in restitution to the IRS as part of his sentence. 

In a separate but related case, Charles’s co-conspirators, his daughter and son-in-law Kathryn Miles and John Miles, each pleaded guilty to conspiracy and were sentenced to federal prison. 

Assistant Attorney General Kathryn Keneally for the Justice Department’s Tax Division commended the investigative efforts of special agents of IRS Criminal Investigation, and Tax Division Trial Attorney Justin K. Gelfand and Assistant U.S. Attorney Brian Samuels, who prosecuted the case.

NEWPORT NEWS, Va. – The leader of a violent and highly sophisticated jewelry theft ring pleaded guilty today for his participation in a racketeering conspiracy, announced U.S. Attorney for the Eastern District of Virginia Neil H. MacBride; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; and James Newman, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division.

Alexander Cuadros-Garcia, aka “Alex,” “Brujo,” “Aleto” and “Manuel Gonzalez”, 37, of Richmond, Va., pleaded guilty to racketeering conspiracy before U.S. Magistrate Judge Tommy Miller. At sentencing, scheduled for July 19, 2013, Cuadros-Garcia faces a maximum penalty of 20 years in prison.

According to court documents, Cuadros-Garcia led an organized criminal group that stole more than $4.6 million in jewelry from victims in Virginia and at least six other states.  In March 2012, Cuadros-Garcia was charged along with seven other individuals who were members of the Richmond-based ring that regularly conducted lengthy surveillance on jewelry stores to identify vulnerable individuals and then follow their targets back to the individuals’ hotel or home. 

In most of the robberies, several men would suddenly appear as the victims approached or entered their car, punch out the car’s windows, threaten the victims at knife-point and steal the victims’ merchandise.  In addition, the robbers would puncture the victims’ car tires and steal their cell phone to reduce the chance of pursuit or apprehension.  After a successful robbery, members of the ring would travel to New York to sell the merchandise to businessmen, who coordinated re-selling the stolen property or melting it down for future use.

            Cuadros-Garcia’s co-defendants Raul Antonio Escobar-Martinez, William Leandro Herrera-Bohorquez and Juanita Diaz previously pleaded guilty for their roles in the theft ring.  Escobar-Martinez and Herrera-Bohorquez were sentenced on March 7 and March 14, 2013, respectively, to serve 87 months in prison.

The investigation of this case was led by the ATF’s Washington Field Division, with the assistance of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the police departments in Williamsburg, Virginia Beach, Henrico County, Chesterfield, Prince William County and Fairfax County in Virginia, along with the Virginia State Police; the Baltimore County, Md., Police Department; the Port Authority of New York and New Jersey; the New York City Police Department; and the police departments in Rutherford, N.J., and Gwinnett County, Ga.; and the Morris County, N.J. Prosecutor’s Office. 

            Assistant U.S. Attorney Eric M. Hurt of the Eastern District of Virginia and Trial Attorney Jerome M. Maiatico of the Criminal Division’s Organized Crime and Gang 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.

ALEXANDRIA, Va. – Angel Andrew Gomez-Garcia, 41, an illegal alien from El Salvador, was sentenced today to 24 months in prison, followed by three years of supervised release, for unlawfully reentering the United States after being deported following his conviction for aggravated sexual battery.

            Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and M. Yvonne Evans, Field Office Director of the U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO) Washington Field Office, made the announcement after sentencing by U.S. District Judge Claude M. Hilton.

            According to court records, Gomez-Garcia is a citizen of El Salvador who has unlawfully entered the United States on at least three occasions. Over the past 14 years, he has been convicted of five separate crimes, including aggravated sexual battery in Alexandria in 1999 and Fairfax County in 2009.

            This case was investigated by ICE ERO. Special Assistant United States Attorney Stacey Rohrs 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.

PHILADELPHIA – Honeywell Resins and Chemicals LLC has agreed to pay a $3 million civil penalty for alleged Clean Air Act violations at its Hopewell, Va., plant, and improve the facility’s air pollution control equipment and processes, the Justice Department and the U.S. Environmental Protection Agency (EPA) announced today.

The proposed consent decree resolves violations of federal and state air pollution regulations at the Hopewell plant, the world’s largest single-site producer of caprolactam used in the production of nylon, and ammonium sulfate used for fertilizer.  According to EPA and the Virginia Department of Environmental Quality, the facility violated Clean Air Act limits on emissions of nitrogen oxide (NOx), benzene and other volatile organic compounds (VOCs) and particulate matter.  The plant also allegedly failed to comply with requirements to upgrade air pollution control equipment, to detect and repair leaks of hazardous air pollutants, and to develop safeguards on benzene waste. 

In addition to the $3 million civil penalty, Honeywell has agreed to reduce harmful air pollutants, install selective catalytic reduction at four production trains at the facility, conduct a third-party benzene waste operations audit, and implement an enhanced leak detection and repair program at the facility.  Honeywell will also perform a mitigation project valued at approximately $1 million at the facility. The settlement reduces annual emissions of NOx by about 6,260 tons, and cuts annual emissions of benzene, other VOCs and hazardous air pollutants by 100 tons.  The estimated cost for injunctive relief to address these emissions will be approximately $66 million dollars. The civil penalty will be split evenly between Virginia and the United States.

        As part of the settlement, Honeywell did not admit liability for the violations, but has certified that it is now in compliance with applicable Clean Air Act regulations. The proposed consent decree is subject to a 30 day public comment period and final court approval.  For more information, see http://www.justice.gov/enrd/ConsentDecrees/Honeywell_Consent_Decree_Lodged.PDF.

ALEXANDRIA, Va. –Eric Harroun, 30, of Phoenix, Ariz., was arrested and charged with conspiring to use a rocket propelled grenade (RPG) while fighting with the al-Nusrah Front, which is an alias of “al Qa’ida in Iraq.” Al Qa’ida in Iraq has been designated as a foreign terrorist organization since October 2004.

Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement.

Harroun, a U.S. citizen who served with the U. S. Army from 2000 to 2003, was charged by criminal complaint with conspiring to use a destructive device outside of the United States, which carries a maximum penalty of life in prison, if convicted.  Harroun made his initial appearance today in federal court in Alexandria, Va., before U.S. Magistrate Judge Theresa C. Buchanan.

The al-Nusrah Front is one of several aliases used by the “al Qa’ida in Iraq” terrorist organization, and since November 2011 the group has claimed responsibility for nearly 600 terrorist attacks in Syria.

            According to an affidavit filed in support of the criminal complaint, Harroun allegedly crossed into Syria in January 2013 and fought with members of the al-Nusrah Front against the Bashar al-Assad regime in Syria. The affidavit alleges that Harroun was trained to use an RPG by members of the terrorist organization and that he fired an RPG and posted online multiple photographs of himself carrying or posing with RPGs and other military weapons. Harroun allegedly participated in attacks led by the al-Nusrah Front and was part of an RPG team, for which he carried anti-personnel and anti-armor rockets.

            This case is being investigated by the FBI’s Washington Field Office. Assistant U.S.  Attorneys Andrew Peterson, Carter Burwell and Lynn Haaland are prosecuting the case on behalf of the United States, with assistance from the Justice Department’s National Security Division.

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

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

ALEXANDRIA, Va. – Angel Campos Tellez, aka “Israel Campos Martinez,” “Abel Cruz Bonilla,” and “Abel Campos,” 27, of Maryland, pleaded guilty today to helping lead a commercial sex enterprise that prostituted at least 100 different women throughout Virginia and nearby states.

Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Virginia Attorney General Kenneth Cuccinelli, II; and John P. Torres, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Washington, D.C., made the announcement after the plea was accepted by United States District Judge Claude M. Hilton.

Campos Tellez, a citizen and national of Mexico who is illegally present in the United States, pleaded guilty to transporting individuals to engage in prostitution, which carries a maximum of five years in prison. Sentencing is scheduled for June 21, 2013.

            According to a statement of facts filed with his plea agreement, Campos Tellez was a leader of a commercial sex enterprise that operated between 2009 and July 2012. His organization brought more than 100 women, most of whom were foreign nationals, from New York, New Jersey, Virginia, Maryland and Washington, D.C., to engage in commercial sex in Manassas, Woodbridge, Virginia Beach, Norfolk and Newport News in Virginia, as well as in Baltimore, Md., and in Delaware.

            Campos Tellez admitted that he coordinated different drivers to transport the women; collected the prostitution proceeds; advertised for the enterprise by handing out business cards at Spanish restaurants, check cashing stores, construction sites and day laborer sites; and obtained lodging for members of the enterprise.

            This case was investigated by ICE HSI, with assistance from the Northern Virginia Human Trafficking Task Force. Virginia Assistant Attorney General and Special Assistant United States Attorney Marc J. Birnbaum and Assistant United States Attorney Michael J. Frank are prosecuting the case on behalf of the United States.

Founded in 2004, the Northern Virginia Human Trafficking Task Force is a collaboration of federal, state, and local law enforcement agencies – along with nongovernmental organizations – dedicated to combating human trafficking and related crimes.

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.