Western District of Virginia

ABINGDON, Va. – A Carroll County woman pleaded guilty today to Supplemental Security Income fraud after receiving disability benefits for more than two years for which she was not entitled.

According to court documents, Jessica Lynn Hawks, previously known as Jessica Lynn Wardwell, 37, received benefits from the Social Security Administration for which she was not entitled. Hawks admitted today that from February 7, 2014 to August 1, 2016, she received $21,858 in Supplemental Security Income disability benefits of behalf of a minor child that was no longer in her custody. Hawks agreed under penalty of perjury that she would use all disability benefits made to her as the representative payee for her minor child’s needs.  She also agreed to notify the Social Security Administration of any change in her child’s living arrangements or care.  However, when Hawks lost custody of her child in February 2014, she never informed the Social Security Administration that the minor child was no longer in her care and instead converted the disability benefits she received on the minor’s behalf for her own benefit.

Hawks pleaded guilty to knowingly and willfully converting Supplemental Security Income disability benefits received for the use and benefit of another, in violation of Title 42, United States Code, Section 1383a(a)(4). She is scheduled to be sentenced on September 28, 2021 and faces a period of incarceration of zero to six months, pursuant to a written plea agreement entered with the government. 

Acting U.S. Attorney Daniel P. Bubar of the Western District of Virginia made the announcement.

The Office of the Inspector General – Social Security Administration is investigating the case.

Assistant U.S. Attorney Lena Busscher is prosecuting the case.

ABINGDON, Va. – An inmate at United State Penitentiary- Lee County (USP Lee) pleaded guilty yesterday to conspiring to kill a fellow inmate, attempting to commit murder, and being an inmate in possession of a prohibited object in relation to an assault that occurred in January 2020.

According to court documents, Moris Flores, 32, and four fellow inmates - Carlos Almonte, Julio Chavez, German Hernandez, and Angel Guevara - entered a cell occupied by victim “AZ” on January 15, 2020, with the intent to commit murder. Flores, a member of MS-13, admitted today that he and Guevara entered the prison cell to attack AZ, a member of the Mexican Mafia, while Almonte, Chavez, and Hernandez surrounded the cell and held the door closed, preventing others from interfering with the attack.

Today Flores admitted that inside the cell he and Guevara attacked victim “AZ” with metal shanks and closed fists. Victim “AZ” sustained multiple stab and puncture wounds.  Flores faces up to life in prison on the conspiracy to commit murder charge.

“Violence within our federal prison system simply will not be tolerated and we will do all we can to continue to closely partner with the FBI and Bureau of Prisons to investigate and prosecute those who continue to break the law inside such facilities,” Acting U.S. Attorney Bubar said today.  “I appreciate the hard work of the investigative team, which brought Flores to justice.”

“The FBI will aggressively investigate and work closely with the United States Attorney’s Office, Western District of Virginia, to prosecute violations of an individual’s civil rights and bring those responsible to justice,” Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division said today.

Almonte, Chavez, Hernandez, and Guevara have all been charged for their roles in the assault.

The Federal Bureau of Investigation and the Bureau of Prisons are investigating the case.

Assistant U.S. Attorneys Lena Busscher and Danny Murphy are prosecuting the case.

ABINGDON, Va. – A federal jury convicted an inmate at United States Penitentiary (USP) Lee in Jonesville, Virginia, on June 1, for illegally possessing a knife inside the prison.

According to court documents and evidence presented at trial, Jose Soto-Ramirez, 34, was found in possession of a 12-inch-long handmade knife while housed as an inmate at the prison. A sentencing hearing has been scheduled for September 7, 2021. Soto-Ramirez faces up to five years in prison.

Acting U.S. Attorney Daniel P. Bubar of the Western District of Virginia made the announcement.

The Bureau of Prisons Special Investigative Service is investigating the case.

Assistant U.S. Attorney Randy Ramseyer and Special Assistant United States Attorney Christine Hummert are prosecuting the case.

ABINGDON, Va. – A Clay City, Kentucky woman, who along with two other individuals stole checks and identification documents and committed bank fraud and aggravated identify theft, was sentenced on Thursday to 39 months in federal prison.

Anica Maire Santiago, 34, pleaded guilty in May 2021 to  one count of conspiracy to commit bank fraud and one count of aggravated identity theft. Co-defendants Cregg Mitchell-Feazell and Patricia Butcher have both pleaded guilty and will be sentenced next month.

According to court documents, on May 24, 2020, at the Iron Furnace Trailhead in Lee County, members of the conspiracy broke into several vehicles and stole personal items, including identification documents, Social Security cards, and personal checks. Four days later, the defendants took one of the stolen checks to a drive-through lane at a Commercial Bank in Newport, Tennessee. The check was fraudulently made out to one of the victims of the previously thefts. Butcher produced the fraudulent check and a stolen state-issued photo ID to the bank teller, who cashed the check for $935.

The group used the stolen checks and IDs several other times to cash fraudulent checks.  These events were also part of a larger organized scheme involving other break-ins at other locations, other thefts of checkbooks and identification documents, and the cashing of other fraudulent checks.

Acting U.S. Attorney Daniel P. Bubar of the Western District of Virginia made the announcement.

The National Park Service, with assistance from the Jacksboro, Tennessee Police Department; the Campbell County, Tennessee Sheriff’s Office; the Fentress County, Tennessee Sheriff’s Office; and the Cookeville, Tennessee Police Department investigated the case.

Assistant U.S. Attorneys Whit D. Pierce and Randy Ramseyer prosecuted the case.

ABINGDON, Va. – Anthony Meyers, an inmate at United States Penitentiary (USP) Lee in Jonesville, Virginia, was sentenced recently to 42 months in federal prison for unlawfully possessing a weapon inside the prison.

Meyers, 37, possessed a 6 and one-half inch long prison-made, sharpened knife. He pleaded guilty in February 2021, to one count of illegal possession of contraband inside the prison.

Acting United States Attorney Daniel P. Bubar announced the sentence today.

The investigation of the case was conducted by the Federal Bureau of Prisons.  Special Assistant United States Attorney Debbie Stevens prosecuted the case for the United States.

CHARLOTTESVILLE, Va. – A federal grand jury returned an indictment yesterday charging a Madison, Virginia woman with nearly a dozen counts of fraud related to a scheme in which she took money from victims while purporting to have terminal cancer, vast wealth, and connections to celebrities.

According to court documents, starting in 2014, Christine Favara Anderson, 51, of Reva, Va.,  owned and operated the publishing companies known as Christine F. Anderson Publishing and Media (CFA) and Sage Wisdom. Anderson took money from book authors but later failed to pay the authors their royalties as owed and did not provide products and services as negotiated. In addition, Anderson often falsely claimed to have been diagnosed with cancer to delay payment to the book authors, while also purporting to maintain vast wealth.  

In addition to the alleged book publishing scheme, Anderson is also charged with orchestrating a real estate scheme where she signed contracts for expensive real estate, provided false proof of funds, and then was unable to provide the earnest money deposits.  Often, Anderson would sign bad checks for the earnest money deposits, which would never clear. While she was putting contracts on these properties, Anderson took money from individuals helping her in these real estate schemes, promising to pay these individuals back.  Anderson used her false interest in the expensive real estate to prove to her victims that she was able to pay back the loans, but never did.  Anderson’s excuses for her inability to pay the earnest money deposit and the loans included her false claims of a cancer diagnosis and freezes on her bank accounts.

Anderson is charged with eight counts of wire fraud, three counts of mail fraud, one count of making a false statement, and one count of concealing records in a federal investigation.

Acting U.S. Attorney Daniel P. Bubar of the Western District of Virginia and Special Agent in Charge Stanley M. Meador of the FBI’s Richmond Division made the announcement.

The Federal Bureau of Investigation and the Madison County Sheriff’s Office are investigating the case.

Assistant U.S. Attorney Kate Rumsey and Madison County Deputy Commonwealth’s Attorney  Wade Gelbert are prosecuting the case.

If  you believe you are a victim of fraud or have information about the allegations in this case, please contact the FBI in Charlottesville at 434-293-9663.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

ABINGDON, Va. – A family medicine physician in Bluefield, Virginia, was sentenced yesterday to one month in prison on a charge of misbranding Schedule II controlled substances to three individuals, two of whom his office staff called “back door patients.”

According to court documents, between December 2014 and January 2016, Phillip Peterson, 64, was a family medicine physician at Bluefield Family Medicine in Bluefield, Va. During this time, Peterson saw several patients who did not check in with the receptionist but rather entered through a side door. Office staff called these patients “back door patients.” These patients came through the side door to pick-up Schedule II controlled substances prescriptions, which they had received from Peterson. These “back door patients” were not actually examined by Dr. Peterson each time they picked-up prescriptions and did not pay for office visits. Evidence showed that each of the prescriptions listed for the “back door patients” was issued outside the usual course of professional practice. 

Dr. Peterson also had one patient who brought lists of prescriptions to the front desk of Bluefield Family Medicine for the receptionist to give to Dr. Peterson or his nurse.  Dr. Peterson authorized those prescriptions, including prescriptions for Schedule II controlled substances, on occasion without the patient actually being seen or evaluated by Dr. Peterson.  Evidence showed these prescriptions were issued outside the usual course of professional practice.

Acting U.S. Attorney Daniel P. Bubar and Special Agent in Charge Jared Forget of the Drug Enforcement Administration made the announcement.

The investigation of the case was conducted by Drug Enforcement Administration’s Tactical Diversion Squad. Assistant United States Attorneys Lena L. Busscher, Whit D. Pierce and Randy Ramseyer prosecuted the case for the United States.

ROANOKE, Va. – John Marshall Higgins, the former superintendent of the Rockbridge County Regional Jail, was sentenced today to 51 months in federal prison for charges related to federal civil rights violations and public corruption.

According to court documents, Higgins, 62, a former member of the Rockbridge County Board of Supervisors, was convicted following a six-day bench trial in 2020 of three counts of deprivation of civil rights for denying medical care to an inmate and failing to protect two inmates from physical abuse, one count of conspiracy to commit mail and honest services fraud, and two counts of mail and honest services fraud for accepting things of value in exchange for engaging in official acts.

“Higgins violated the public trust placed in him as jail superintendent.  He repeatedly interfered with certain sentences handed down by Virginia courts, taking matters into his own hands by allowing the abuse of certain inmates, but treating another inmate favorably to enrich himself,” Acting U.S. Attorney Bubar said today.  “As the court found today, this conduct was simply egregious and went on for years.  Today’s significant sentence ought to serve as a deterrent to any public servant who may be tempted to carry out the administration of justice with anything less than fairness under the law.  I thank the FBI, the Virginia State Police, the Rockbridge County Commonwealth Attorney's Office and the prosecution team for their tireless work to bring Higgins to justice.”

“The responsibility of investigating federal Civil Rights and Color of Law violations rests with the FBI, regardless of an individual's status amongst our community or law enforcement affiliation,” Special Agent in Charge Stanley M. Meador of the FBI’s Richmond Division said today. “In his official capacity, Mr. Higgins turned a blind-eye to the medical needs and security of inmates while profiting personally by helping another.  A clear abuse of his position, and catalyst for mistrust in law enforcement - which cannot and should not be tolerated.  We are fully committed to protecting the rights of all citizens, and appreciate the partnership of the Virginia State Police, the Rockbridge County Commonwealth Attorney's Office, and the Western District of Virginia, United States Attorney's Office during this investigation.”

According to evidence presented at his trial, Higgins, as superintendent of the jail, failed to protect the rights of inmates at the regional jail by failing to provide an inmate with medical treatment and failing to protect that inmate from physical abuse from other inmates, which resulted in bodily injury.  On multiple occasions Higgins was made aware of abusive conduct towards certain inmates and did nothing to prevent the abuse from occurring. On one occasion, Higgins refused to allow an inmate with potentially serious injuries to be seen by a physician for three days. The inmate was only provided medical care after other staff members sent the inmate to the hospital emergency room.

In addition, evidence demonstrated that Higgins, while superintendent of the jail, agreed to accept things of value from the family and friends of an inmate at the Rockbridge Regional Jail in exchange for providing preferential treatment to the inmate.  These family members and friends provided at least $3,000 in payments and other items to a scholarship fund operated by Higgins and his family.  The evidence demonstrated that in exchange for these payments, the inmate, who had been ordered to serve a three-year sentence at the Department of Corrections for vehicular manslaughter, received significant privileges while incarcerated at the Rockbridge Regional Jail.  These privileges and preferential treatment included, but were not limited to, unsupervised contact visits with family and friends at the jail and at a farm located in Rockbridge County and deliveries of ice cream from Higgins to the inmate.  Higgins also upgraded the cable package at the jail at the inmate’s request and granted the inmate unfettered access to jail facilities and Higgins’ personal office. Finally, at Higgins’ direction, the inmate was never sent to the Virginia Department of Corrections to serve his sentence, as dictated by policy and procedure, but instead served his entire sentence at the Rockbridge Regional Jail.  

Gary Andrew Hassler, the former head nurse at the jail, was also convicted as part of the investigation. Hassler was convicted in 2020 following a jury trial on one count of impeding a federal investigation into civil rights violations at the Rockbridge Regional Jail by falsifying a document. Evidence at trial showed that on March 5, 2017, Hassler falsified a document to claim an inmate at the jail refused medical care.  Hassler was sentenced to a term of imprisonment of twelve months and one day.

The Federal Bureau of Investigation and the Virginia State Police investigated the case. The Commonwealth Attorney’s Office for Rockbridge County assisted with the investigation.

Assistant U.S. Attorneys Zachary T. Lee and Matthew Miller prosecuted the case.

ABINGDON, Va. –Nancy Degollado, an Atlanta, Georgia woman and the final defendant to be sentenced in a multi-state methamphetamine trafficking conspiracy, was sentenced last week to 204 months in federal prison.

According to court documents, from October 2018 through August 2019, members of a methamphetamine trafficking conspiracy traveled to Georgia, at least three times to acquire a total of seven kilograms of methamphetamine from Degollado, which were then distributed to co-defendants and others in southwest Virginia and northeast Tennessee. 

Co-conspirator Michael Dear, 42, of Bristol, Virginia, and Degollado both accepted responsibility for trafficking 7 kilograms of methamphetamine during the conspiracy. Co-defendants Joshua Sabins,  Donald Thrift, Shannon Chapman, Brandon Cook, Shannon Wilmoth, Robert Osborne, Ashley Firestone, David Sexton, and Nancy Kestner all admitted they distributed methamphetamine acquired from Dear throughout southwest Virginia during this conspiracy.  Multiple firearms were recovered during the course of the investigation, resulting in charges against Dear, Sabins, Thrift, and Chapman for being convicted felons illegally in possession of firearms, and against Osborne for being an unauthorized user of controlled substances in possession of a firearm.   

“Disrupting supply chains of methamphetamine into our region, and the havoc this narcotic wreaks on our citizens, is a high priority for our office,” Acting U.S. Attorney Bubar stated today.  “I am grateful for the dedication and hard work of our law enforcement partners for their efforts in this investigation and disrupting a major source of supply in southwest Virginia.”

“Unfortunately, even though we are still in the middle of a pandemic, our communities have continued to suffer from the effects of dangerous drugs like methamphetamine,” said Attorney General Mark Herring. “My team and I will continue to aggressively go after dangerous individuals who bring drugs into our communities. I want to thank our local, state, and federal partners for their dedication to keeping Virginia safe.”

Dear was sentenced to 188 months in prison for his role in the conspiracy and for being a prohibited person in possession of a firearm.

All eleven defendants have now been sentenced in this case, including:

Sabins, 37, of Bristol, Va, was sentenced to 216 months in federal prison for his role in the conspiracy, as well as charges of possessing a firearm after being a prohibited person and attempting to forcibly assault a federal law enforcement officer. 

Thrift, 31, of Bristol, Va., was sentenced to 60 months in federal prison for his role in the conspiracy, as well as possessing a firearm after being a prohibited person.

Chapman, of Bristol, Va., was sentenced to 72 months in federal prison for her role in the conspiracy, as well as possessing a firearm after being a prohibited person.

Cook, 33, of Marion, Va., was sentenced to serve a total of 168 months in federal prison for his role in this conspiracy, as well as an additional charge of conspiring to distribute methamphetamine in connection with a separate conspiracy. 

Wilmoth, 46, of Bristol, Tn, was sentenced to serve 30 months in federal prison for her role in this conspiracy.

Osborne, 50, of Marion, Va., was sentenced to serve a total of 120 months in federal prison for his role in the conspiracy, as well as a charge of being a user in possession of a firearm and an additional charge of conspiring to distribute methamphetamine in connection with a separate conspiracy.

Firestone, 28, of Saltville, Va., was sentenced to serve 60 months in federal prison for her role in the conspiracy.

Sexton, 45, of Glade Spring, Va., was sentenced to serve 30 months in federal prison for his role in the conspiracy.

Kestner, 41, of Glade Spring, Va., was sentenced to serve 42 months in federal prison for her role in the conspiracy. 

The investigation of the case was led by the Drug Enforcement Administration, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, Bristol, Va. and Bristol, Tn. Police Departments, Smyth County Sheriff’s Office, Smyth County Commonwealth Attorney’s Office, Turner County, Ga. Sheriff’s Office, United States Marshals, and Washington County Sheriff’s Office. 

Special Assistant United States Attorney M. Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, and Special Assistant United States Attorney Roy Evans prosecuted the case for the United States.

ROANOKE, Va., – In honor of National Police Week, Acting U.S. Attorney Daniel P. Bubar recognizes the service and sacrifice of federal, state, local, and Tribal law enforcement. This year, the week is observed Sunday, May 9 through Saturday, May 15, 2021.

“This week is a time to honor our law enforcement officers who have made the ultimate sacrifice in service to our nation,” said Attorney General Garland. “I am constantly inspired by the extraordinary courage and dedication with which members of law enforcement act each day, putting their lives on the line to make our communities safer. To members of law enforcement and your families: we know that not a single day, nor a single week, is enough to recognize your service and sacrifice. On behalf of the entire Department of Justice, you have our unwavering support and eternal gratitude.”

“Every day our police officers put on their badges and risk their lives to protect the safety of our communities,” Acting U.S. Attorney Daniel Bubar stated today.  “They take up the call to serve in the face of great personal sacrifice and increasing adversity.  Specifically, this past year’s global pandemic coupled with rising anti-police sentiment presented unprecedented challenges.  Instead of wilting in the face of these difficult circumstances, these brave men and women provide security and the rule of law against violence and mayhem.  Please join me this week in thanking our law enforcement community and taking time to honor their great sacrifice.”

In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices.  Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.  

 Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty, and commitment to keeping our communities safe. This year the COVID-19 pandemic has highlighted law enforcement officers’ courage and unwavering devotion to the communities that they have sworn to serve.

During the Roll Call of Heroes, a ceremony coordinated by the Fraternal Order of Police (FOP), more than 300 officers will be honored.  Based on data submitted to and analyzed by the National Law Enforcement Officer Memorial Fund (NLEOMF), of the law enforcement officers who died nationwide in the line of duty in 2020, nearly 60 percent succumbed to COVID-19.

Additionally, according to statistics reported by the Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 46 law enforcement officers died as a result of felonious acts and 47 died in accidents in 2020.  LEOKA statistics can be found on FBI’s Crime Data Explorer website. 

The names of the 394 fallen officers who have been added in 2020 to the wall at the National Law Enforcement Officer Memorial will be read on Thursday, May 13, 2021, during a Virtual Candlelight Vigil, which will be livestreamed to the public at 8:00 PM EDT. The Police Week in-person public events, originally scheduled for May, have been rescheduled due to ongoing COVID-19 concerns to October 13-17, 2021. An in-person Candlelight Vigil event is scheduled for October 14, 2021.

Those who wish to view the Virtual Candlelight Vigil on May 13, 2021, can watch on the NLEOMF YouTube channel found at https://www.youtube.com/user/TheNLEOMF. The FOP’s Roll Call of Heroes can be viewed at www.fop.net. To view the schedule of virtual Police Week events in May, please view NLEOMF’s Police Week Flyer.  

To learn more about National Police Week in-person events scheduled for October, please visit www.policeweek.org.

LYNCHBURG, Va. – A Forest, Virginia, man, who owned and operated Lighthouse Properties of Virginia Inc., [LHP], pleaded guilty yesterday in connection with an embezzlement scheme in excess of $550,000.

According to court documents, Timothy Darrell Penick, 38, owned and operated LHP since approximately 2011. LHP provided real estate management services to clients, including homeowners’ associations and property owners. Beginning in June 2018, Penick devised a scheme to defraud multiple LHP clients. He obtained authorization from clients to directly access client bank accounts and would then transfer funds from those accounts to other accounts in LHP’s name. Penick was the only authorized owner and signer on these LHP accounts. Penick used these funds for purposes that were not authorized by the clients and did not benefit the client.

To conceal the misuse of client funds, Penick created fraudulent bank account statements that omitted transactions from the client accounts into the LHP accounts. These fraudulent bank statements would then be used to create financial packets provided to clients and client representatives.

“Penick violated his clients’ trust when he defrauded them.  This behavior is a serious federal crime and simply won’t be tolerated,” said Acting U.S. Attorney Bubar.  “I’m proud of the work of our state and federal law enforcement partners that brought Penick to justice and will provide the victims in this case with restitution for the crimes committed against them.”

“Mr. Penick manipulated his clients and went to great lengths to conceal his criminal activity.  With this plea, Mr. Penick accepts responsibility for his actions and the clients have the justice they deserve,” said Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division. “We are grateful for the partnership of the Campbell County Sheriff's Office and the United States Attorney's Office's - Western District of Virginia in this investigation.”

Penick pleaded guilty to one count of wire fraud. He is scheduled to be sentenced on September 7, 2021. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The  Campbell County Sheriff’s Office and Federal Bureau of Investigation are investigating the case.

Assistant U.S. Attorney Michael Baudinet is prosecuting the case.

LYNCHBURG, Va. – A case involving four people, who between June 2018 and January 2019, conspired to cash checks stolen from residential mailboxes, concluded today in the U.S. District Court.

According to court documents, Justin Rosser and Kristen Knowles stole mail from residential mailboxes, altered any personal or business checks they found, and either cashed them at a bank themselves or enlisted the help of others, Amanda Thomas and Gloria Beckham, to cash the forged checks at their direction. On occasion, members of the group presented stolen driver’s licenses to the banks to cash the checks. In all, Rosser and Knowles stole approximately $8,000. Knowles was later involved in the theft and cashing of additional checks in the fall and early winter of 2019, that netted her an additional $1,000.

On March 4, 2021, Rosser was sentenced to 36 months in prison. On April 19, 2021, Knowles was sentenced to 33 months in prison and Beckham was sentenced to 12 months and 1-day. Yesterday the last remaining defendant, Thomas, was sentenced to 6 months imprisonment.   

The United States Postal Inspection Service and Campbell County Sheriff’s Office investigated the case with the assistance of the Amherst County Sheriff’s Office, Bedford County Sheriff’s Office, Town of Bedford Police Department, City of Lynchburg Police Department, Appomattox County Sheriff’s Office, Campbell County Commonwealth’s Attorneys’ Office, Amherst County Commonwealth’s Attorneys’ Office, Bedford County Commonwealth’s Attorneys’ Office, Appomattox County Commonwealth’s Attorneys’ Office, Lynchburg Commonwealth’s Attorneys’ Office.

Assistant U.S. Attorney Coleman Adams prosecuted the case.

ABINGDON, Va. – A Bristol, Tennessee woman pleaded guilty yesterday to conspiring to defraud the United States as part of the ongoing prosecution into dozens of individuals who fraudulently filed for more than $499,000 in pandemic unemployment benefits and committed mail fraud.

According to court documents, Melissa Hayes, 51, conspired with others, including those previously convicted as part of the ongoing prosecution, to file claims for pandemic unemployment benefits through the Virginia Employment Commission [VEC] website. The scheme involved submitting claims for various individuals who were not eligible to receive pandemic unemployment benefits, including for numerous inmates incarcerated in southwest Virginia regional jails. 

Conspiracy members lied on the filings as part of the scheme to make filers appear eligible for benefits.  Because pandemic unemployment benefits were paid weekly, those filing reverified and re-certified the false statements on numerous occasions throughout the scheme.

In all, the conspiracy filed fraudulent claims for approximately 37 individuals, causing at least $499,000 in false claims to be have been paid.

The aggregate actual loss for all fraudulent claims in which Hayes was directly involved is more than $70,000.

Hayes pleaded guilty to one count of conspiracy to defraud the government and one count of conspiracy to commit mail fraud.  She is scheduled to be sentenced on July 26, 2021. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney Daniel P. Bubar, Jonathan Mellone, Acting Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General and Acting Special Agent in Charge is Darrell J. Waldon of the Internal Revenue Service- Criminal Investigation announced the guilty plea today.

The Department of Labor-Office of the Inspector General and the Internal Revenue Service – Criminal Investigation, the Norton Police Department, and the Russell County Sheriff’s Office are investigating the case.

Assistant U.S. Attorney Daniel J. Murphy is prosecuting the case.

ABINGDON, Va. – A group of three individuals have pleaded guilty to using stolen checks and identification documents to commit bank fraud and aggravated identity theft.

According to court documents, on May 24, 2020, at the Iron Furnace Trailhead in Lee County, Virginia, individuals broke into several vehicles and stole personal items, including identification documents, Social Security cards, and personal checks.  Four days later, Anica Marie Santiago, 34, of Lexington, Kentucky, Cregg Mitchell-Feazell, 28, of Oakland Park, Florida, and Patricia Butcher, 31, of Clay City, Kentucky, took one of the stolen checks to a drive-through lane at a Commercial Bank in Newport, Tennessee. The check was fraudulently made out to one of the victims of the previously thefts. Butcher produced the fraudulent check and a stolen state-issued photo ID to the bank teller, who cashed the check for $935.

The group used the stolen checks and IDs at least three other times to cash fraudulent checks.  These events were also part of a larger organized scheme involving other break-ins at other locations, other thefts of checkbooks and identification documents, and the cashing of other fraudulent checks.

All three defendants pleaded guilty to one count of conspiracy to commit bank fraud and one count of aggravated identity theft. Sentencing hearings have been scheduled for June 3, 2021, July 22, 2021, and July 23, 2021 for Santiago, Mitchell-Feazell, and Butcher, respectively. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The investigation of the case was conducted by the National Park Service, with assistance from the Jacksboro, Tennessee Police Department, the Campbell County, Tennessee Sheriff’s Office, the Fentress County, Tennessee Sheriff’s Office, and the Cookeville, Tennessee Police Department.

Assistant U.S. Attorneys Whit D. Pierce and Randy Ramseyer are prosecuting the case.

ROANOKE, Va. – A former American Electric Power (AEP) employee pleaded guilty yesterday to wire fraud and filing false tax returns.

According to court documents, Gregory Thomas Holland, 63, of Roanoke, was employed at AEP from 1982 until January 2018, where he worked for many years in the credit department. Specifically, Holland was responsible for managing AEP’s interests during customer bankruptcies, filing claims, and reducing debts.

Holland admitted yesterday that in 2001 he opened a personal checking account using AEP’s name and address unbeknownst to anyone else at the company. Beginning in May 2002, Holland began depositing checks into this account, written on behalf of AEP customers, and made payable to AEP. Between May 2002 and January 2018, Holland admitted to depositing more than 300 checks into this account. All the money he deposited into this account belonged to AEP. Nonetheless, Holland used the money from the account for personal expenses such as dues at the Roanoke Country Club, car payments, and clothing purchase, among other things.

Holland did not report any of this additional income on his Form 1040 Individual Income Tax Returns for tax years 2011 through 2017.

In all, it is estimated Holland stole $1.6 million dollars from AEP. The court will determine the exact amount of loss at Holland’s sentencing hearing.

Acting United States Attorney Daniel P. Bubar made the announcement today.

Holland pleaded guilty to one count of wire fraud and one count of willfully filing a false tax return.  He is scheduled to be sentenced on September 10, 2021 and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The United States Secret Service, Internal Revenue Service-Criminal Investigations, and Virginia State Police are investigating the case.

Assistant U.S. Attorney Michael Baudinet is prosecuting the case.

ABINGDON, Va. – A federal grand jury in Abingdon returned an indictment today charging 23 individuals with their roles in a large conspiracy to defraud the United States government by filing fraudulent claims for more than $499,000 in pandemic unemployment benefits, mail fraud and associated offenses.

According to court documents, the defendants conspired to file claims for pandemic unemployment benefits through the Virginia Employment Commission (VEC) website. The scheme involved submitting claims for various individuals who were not eligible to receive pandemic unemployment benefits, including for numerous inmates incarcerated in southwest Virginia regional jails. 

Conspiracy members lied on the filings as part of the scheme to make filers appear eligible for benefits.  Because pandemic unemployment benefits were paid weekly, each of those filings re-verified and re-certified the false statements on numerous occasions throughout the scheme.

In all, the conspiracy filed fraudulent claims for approximately 37 individuals, causing at least $499,000 in false claims to be have been paid.  In addition to those indicted, eight co-conspirators have already entered into plea agreements with the United States.

Those charged by the grand jury today include:

• Jeffrey R. Tackett, 29, one count of conspiracy to defraud the government, one count of emergency relief fraud, one count of mail fraud conspiracy, one count of mail fraud, two counts of aggravated identify theft, one count of obstruction of justice, and one count of making false statements.
• Jimmy W. Barnette, 28, one count of conspiracy to defraud the government, one count of emergency relief fraud, one count of mail fraud conspiracy, one count of mail fraud, one count of aggravated identity theft, and one count of making false statements.
• George L. Buckles, 31, one count of conspiracy to defraud the government, one count of emergency relief fraud, one count of mail fraud conspiracy, one count of mail fraud, one count of aggravated identity theft, and one count of making false statements.
• Joshua S. Carroll, 31, one count of conspiracy to defraud the government, one count of emergency relief fraud, one count of mail fraud conspiracy, one count of mail fraud, and one count of aggravated identity theft.
• Darrell D. Davis, 66, of Lebanon, Va., one count of conspiracy to defraud the government, one count of emergency relief fraud, one count of mail fraud conspiracy, one count of mail fraud, one count of aggravated identity theft, and one count of making false statements.
• Melinda R. Davis, 58, of Lebanon, Va., one count of conspiracy to defraud the government, one count of emergency relief fraud, one count of mail fraud conspiracy, one count of mail fraud, and one count of aggravated identity theft.
• Eugene A. Grizzle, 19, one count of conspiracy to defraud the government, one count of emergency relief fraud, one count of mail fraud conspiracy, one count of mail fraud, and one count of aggravated identity theft.
• Joseph N. Hall, 42, one count of conspiracy to defraud the government, one count of emergency relief fraud, one count of mail fraud conspiracy, one count of mail fraud, and one count of aggravated identity theft.
• Wesley W. Hickman, 24, one count of conspiracy to defraud the government, one count of emergency relief fraud, one count of mail fraud conspiracy, one count of mail fraud, and one count of aggravated identity theft.
• Jacob B. Hicks, 35, one count of conspiracy to defraud the government, one count of emergency relief fraud, one count of mail fraud conspiracy, one count of mail fraud, and one count of aggravated identity theft.
• Timothy H. Hileman, 29, of Castlewood, Va., one count of conspiracy to defraud the government, one count of emergency relief fraud, one count of mail fraud conspiracy, one count of mail fraud, one count of aggravated identify theft, one count of obstruction of justice, and one count of making false statements.
• Ajay Johnson, 25, one count of conspiracy to defraud the government, one count of emergency relief fraud, one count of mail fraud conspiracy, one count of mail fraud, and one count of aggravated identity theft.
• John C. Johnson, Jr., 33, one count of conspiracy to defraud the government, one count of emergency relief fraud, one count of mail fraud conspiracy, one count of mail fraud, and one count of aggravated identity theft.
• John C. Johnson, Sr., 57, one count of conspiracy to defraud the government, one count of emergency relief fraud, one count of mail fraud conspiracy, one count of mail fraud, and one count of aggravated identity theft.
• Randall D. Johnson, 41, one count of conspiracy to defraud the government, one count of emergency relief fraud, one count of mail fraud conspiracy, one count of mail fraud, and one count of aggravated identity theft.
• Marissa L. Kiser, 26, one count of conspiracy to defraud the government, one count of emergency relief fraud, one count of mail fraud conspiracy, one count of mail fraud, and one count of aggravated identity theft.
• Curtis E. Mullins, 25, one count of conspiracy to defraud the government, one count of emergency relief fraud, one count of mail fraud conspiracy, one count of mail fraud, and one count of aggravated identity theft.
• Danny L. Mullins, 49, one count of conspiracy to defraud the government, one count of emergency relief fraud, one count of mail fraud conspiracy, one count of mail fraud, and one count of aggravated identity theft.
• James B. Mullins, 31, one count of conspiracy to defraud the government, one count of mail fraud conspiracy, one count of mail fraud, one count of aggravated identity theft and one count of making false statements..
• Steven J. Mullins, 33, one count of conspiracy to defraud the government, one count of emergency relief fraud, one count of mail fraud conspiracy, one count of mail fraud, and one count of aggravated identity theft.
• Veronica S. Mullins, 47, one count of conspiracy to defraud the government, one count of emergency relief fraud, one count of mail fraud conspiracy, one count of mail fraud, three counts of aggravated identify theft, one count of obstruction of justice, and one count of making false statements.
• Patrick A. Payne, 42, one count of conspiracy to defraud the government, one count of mail fraud conspiracy, one count of mail fraud, and one count of aggravated identity theft.
• Jeffery D. Wiseman, 27, one count of conspiracy to defraud the government, one count of mail fraud conspiracy, one count of mail fraud, one count of aggravated identity theft, and one count of making false statements.

Acting U.S. Attorney Daniel P. Bubar of the Western District of Virginia, Jonathan Mellone, Acting Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General and Acting Special Agent in Charge is Darrell J. Waldon of the Internal Revenue Service- Criminal Investigation made the announcement.

The Department of Labor-Office of the Inspector General and the Internal Revenue Service – Criminal Investigation, the Norton Police Department, and the Russell County Sheriff’s Office are investigating the case.

 Assistant U.S. Attorney Daniel J. Murphy is prosecuting the case.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

ABINGDON, Va. – An inmate serving a federal sentence pleaded guilty and was sentenced today for assaulting an officer at the local jail where he was being held pursuant to a contract with the U.S. Marshals.

Daniel Lee Wade Jr., 35, pleaded guilty today in United States District Court in Abingdon to one count of forcibly assaulting and resisting an officer of the United States Government. The assault happened on April 4, 2021, at the Southwest Virginia Regional Jail in Abingdon, just three days after Wade was sentenced to a four-year sentence in federal court for possessing a weapon in a federal prison.  The officer did not require any medical treatment.

Wade was sentenced to an additional six-month term of imprisonment to be served consecutively to his prior sentences.

Acting U.S. Attorney Daniel P. Bubar of the Western District of Virginia made the announcement.

The case was investigated by the U.S. Marshals Service.

Assistant U.S. Attorney Randy Ramseyer prosecuted the case.

ABINGDON, Va.-  – A Whitewood, Virginia man pleaded guilty today to distributing child pornography using a means or facility of interstate commerce.

According to court documents, Jordan Seth Gross, 21, distributed child pornography to an undercover employee with the Federal Bureau of Investigation (FBI) in November 2020. Gross admitted today to using the KIK computer messenger application to communicate with others in a known child pornography chatroom. Gross accessed his KIK account from both his home in Whitewood, in Buchanan County, Virginia, and his place of employment at Buchanan General Hospital in Grundy, Virginia. Using that account, Gross distributed multiple videos of prepubescent females under the age of twelve engaged in sexually explicit conduct to an FBI employee working undercover in the chatroom.  Gross admitted he had been distributing child pornography since he was fourteen years old.   

“When individuals distribute images and videos of the sexual abuse of children on the internet, they continue these horrific crimes in perpetuity,” U.S. Attorney Bubar stated today.  “I’m thankful for the good work of the FBI and Virginia State Police in this case, which ought to send the strong message to anyone tempted to exploit our children for their own abhorrent desires—we will find you and bring you to justice.”

“The innocence of young children should be nurtured, not tarnished via sexually explicit behavior, and then marketed through websites for the entertainment of predators,” Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division said today. “Our investigators work tirelessly to identify these criminals and hold them accountable, but also to identify and provide helpful resources to these victims and their families.  We are grateful for the partnership of the Virginia State Police and the United States Attorney's Office's for the Western District in this case.”

Gross pleaded guilty to one count of knowingly distributing one or more visual depictions of a minor engaging in sexually explicit conduct that has been mailed or transported in interstate or foreign commerce. He is scheduled to be sentenced on August 5, 2021 and faces a sentence of between 84-120 months imprisonment, followed by a period of supervised release.

The Federal Bureau of Investigation and Virginia State Police are investigating the case.  Assistant U.S. Attorney Lena Busscher is prosecuting the case.

ABINGDON, Va. – A Marion man pleaded guilty today to using force or the threat of force to interfere with federally protected housing rights based on the race or color of the victims.

According to evidence presented at the guilty plea hearing by Assistant United States Attorney Zachary T. Lee, James Brown, 41, burned a cross on the front yard of an African-American family in the early morning hours of June 14, 2020. One of the family members had organized a civil rights protest the day before in Marion, Virginia. Brown admitted to burning the cross to two witnesses and also was known to use racial epithets when referring to the African-American family.

“Acts of hatred, intimidation and the threat of force, carried out by the racially motivated cross burning in this case, illegally interfered with their federally protected housing rights,” Acting U.S. Attorney Bubar said today.  “This illegal, divisive behavior destroys communities and will not be tolerated.  I’m proud of the work of the FBI and our state partners, who brought James Brown to justice.”

“There is absolutely no room for racial intimidation or injustice occurring in our communities,” Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division said today. “FBI Richmond is steadfast in our commitment of protecting residents of the Commonwealth, regardless of race or ethnicity; and will continue to work with our investigative and prosecutorial partners to hold accountable the offenders who attempt to fracture our communities.”

Brown pleaded guilty today to one count of criminal interference with federally protected housing rights based upon the victim’s race.

The Federal Bureau of Investigation, the Marion Police Department, and the Smyth County Sheriff’s Office are investigating the case.

Assistant U.S. Attorney Assistant United States Attorneys Zachary T. Lee and Daniel Murphy are prosecuting the case.

ROANOKE, Va. – Steven Rosine, a former employee at a production facility here that manufactures night vision goggles used by the U.S. military, was sentenced today in U.S. District Court in Roanoke to 18 months in federal prison for stealing night vision devices and other components and selling them over the Internet. Acting United States Attorney Daniel P. Bubar and Special Agent in Charge Raymond Villanueva for the Homeland Security Investigations (HSI) Washington, D.C. field office, made the announcement today.

Rosine, 48, pleaded guilty in September 2020 to one count of interstate transportation of stolen property.

“When Rosine stole critical defense products to sell for his own greed, he committed a serious crime,” Acting United States Attorney Bubar said today. “Today’s sentence ought to send a strong message to those who are trusted with protecting our national security infrastructure that such conduct will not be tolerated.  We appreciate the hard work that went into this case by the dedicated team, including Homeland Security Investigations and the Roanoke County Police.”

“HSI has the authority and the duty to investigate crimes involving the online sale and distribution of stolen or looted property,” said Raymond Villanueva, Special Agent in Charge of the HSI Washington D.C. field office. “Working closely with the Department of Justice on these cases is vital to ensure the individuals and organizations responsible for these crimes are prosecuted.”

According to court documents, from 1996 to 2019, Rosine was employed as a production engineer at Harris Corporation’s night vision manufacturing facility in Roanoke, Va. During his employment Rosine had access to night vision devices and various components used in device manufacturing.

Between approximately 2010 and 2014, Rosine stole approximately 66 pounds of a soft metal called Indium, a crucial element used in the night vision manufacturing process. He sold the stolen Indium on the Internet to a company in California for his own personal financial gain, yielding a profit of $51,622. 

Beginning in 2012 and continuing through 2018, Rosine stole various image intensifier tubes, night vision systems, and component parts from Harris Corporation. Rosine listed these items for sale on an Internet website. Rosine maintained a dedicated PayPal account, into which he deposited more than $119,000 in proceeds from his illicit sale of night vision devices.

A majority of the night vision devices sold by Rosine are classified as third generation image intensifier tubes and were manufactured using classified production data. They are categorized by the Department of State, Directorate of Defense Trade Controls (DDTC) as “Defense Articles,” which are subject to control under the International Trafficking in Arms Regulations (ITAR) and the jurisdiction of the Department of State.

The investigation of the case was conducted by Homeland Security Investigation and the Roanoke County Police Department.  Assistant United States Attorney Kristin B. Johnson prosecuted the case for the United States, in coordination with William Mackie, Counterintelligence & Export Control Section, National Security Division, U.S. Department of Justice.

ABINGDON, Va. – Brittany McReynolds, a Saint Paul, Virginia woman who conspired with others to file for fraudulent pandemic unemployment benefits, pleaded guilty today in U.S. District Court in Abingdon to charges she conspired with others to commit mail fraud and defraud the government of more than $182,474.  Acting United States Attorney Daniel P. Bubar, Jonathan Mellone, Acting Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General and Acting Special Agent in Charge is Darrell J. Waldon of the Internal Revenue Service- Criminal Investigation announced the guilty plea today.

McReynolds, 32, waived her right to be indicted and pleaded to a two-count Information charging her with one count of conspiracy to defraud the government and one count of conspiracy to commit mail fraud.

“McReynolds took advantage of unemployment funds that were to be provided to those in need during the pandemic, defrauding these important programs,” said Acting U.S. Attorney Bubar today. “We will continue to work closely with our partners at the Department of Labor and IRS to ensure that anyone who steals from these benefit programs is brought to justice.”

“The Unemployment Insurance Program exists to provide needed assistance to qualified individuals who are unemployed due to no fault of their own.  Fraud against the Unemployment Insurance Program causes state workforce agencies, like the Virginia Employment Commission, to redirect valuable resources to address fraud and ensure benefits go to individuals who are eligible to receive them. The Office of Inspector General will continue to work closely with the U.S. Attorney’s Office, the Virginia Employment Commission, and our many law enforcement partners, to investigate those who exploit the Unemployment Insurance Program,” said Jonathan Mellone, Acting Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General.

“The CARES Act and the Pandemic Unemployment Assistance program have been a lifeline, helping to sustain taxpayers through these tough times.  Sadly, as these programs were being launched to assist those in need, McReynolds and her co-conspirators found a way to fraudulently take advantage of the benefits,” said Darrell J. Waldon, Acting Special Agent in Charge of the IRS-CI Washington DC Field Office.  “These type investigations remain a priority of IRS-CI.  We will continue to pursue justice against those who deceptively obtain pandemic relief funds to enhance themselves financially.”

McReynolds admitted today that she and others, including her husband Travis Kilgore - who pleaded guilty last week in U.S. District Court to conspiracy and mail fraud charges -filed claims for pandemic unemployment benefits through the VEC website. The scheme involved submitting claims for various individuals who were not eligible to receive pandemic unemployment benefits.  McReynolds and Kilgore lied on the filings as part of the scheme to appear eligible for benefits.  Because pandemic unemployment benefits were paid weekly, McReynolds reverified and re-certified the false statements on numerous occasions throughout the scheme.

In all, the conspiracy filed claims for approximately 21 other individuals, causing at least $182,474 in false claims to be have been paid.

The investigation of the case was conducted by the Department of Labor-Office of the Inspector General and the Internal Revenue Service – Criminal Investigation, the Norton Police Department, and the Russell County Sheriff’s Office. Assistant United States Attorney Daniel J. Murphy is prosecuting the case for the United States.   

ABINGDON, VIRGINIA – Juan Fernando Sanchez, an inmate at the United States Penitentiary (USP) Lee in Jonesville, Virginia, was sentenced yesterday in U.S. District Court in Abingdon to 48 months in prison for unlawfully possessing a weapon inside the prison, Acting United States Attorney Daniel P. Bubar announced today.

Sanchez, 26, possessed a 6.5-inch-long prison-made sharpened metal weapon.  The weapon was discovered in his front pocket during a random search. 

Sanchez pleaded guilty on January 12, 2021. 

The investigation of the case was conducted by the Federal Bureau of Prisons.  Special Assistant United States Attorney Debbie Stevens prosecuted the case for the United States.

ABINGDON, Va. – A North Carolina man, who used the popular social media messaging app Snapchat to solicit minors to send him sexually explicit photographs and videos in exchange for expensive gifts, pleaded guilty today in U.S. District Court in Abingdon, Acting United States Attorney Daniel P. Bubar, Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division, and Grayson County Sheriff Richard Vaughan announced today.

Jason Kelly Inman, 40, of Mount Airy, N.C., waived his right to be indicted and pleaded guilty today to a one-count Information charging him with persuading, enticing, and coercing and attempting to persuade, entice, and coerce minors to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct. At sentencing, Inman faces a term of imprisonment of 15 to 17-and-one-half years, and a mandatory minimum term of supervised release of five years.  A sentencing hearing has been scheduled for July 21, 2021 at 2:30 p.m.  

“This defendant used the internet to prey on vulnerable victims, promising them expensive gifts and cash in order to facilitate this egregious behavior,” United States Attorney Bubar said today. “An unfortunate side effect of living our lives increasingly online is the increased ability of bad actors to reach across the internet into the bedrooms of our children through messaging apps, social media, and other platforms. I am thankful for the work of the FBI and the Grayson County Sheriff’s Office in bringing this case to justice.”

“Sending just one sexually explicit image could be the catalyst for possible child sexual exploitation.  That's why it's imperative that we educate our communities about these threats to our youth, investigate and prosecute those that prey on our children, and mitigate the effects of these crimes.  Reporting these crimes in a timely manner enables trained law enforcement personnel to initiate investigations and arrange for appropriate victim services,” Special Agent in Charge Meador said today. “FBI Richmond is grateful for the partnership of the Grayson County Sheriff's Office, the Virginia State Police and the United States Attorney's Office during this investigation.”

“I commend everyone involved with the investigation, arrest, and successful prosecution of this child predator,” Grayson County Sheriff Richard Vaughan said today. “The school administration, resource officers, investigators, and prosecutors did an outstanding job! We are thankful for the great working relationship we have with our law enforcement partners.”

Today Inman admitted that between June 2020 and December 2020, he used Snapchat to solicit minor victims living in Grayson County, Virginia, to send him sexually explicit photographs and videos of themselves. Inman targeted at least four minor, male victims, all who resided in Galax, Virginia, and ranged in age from 14 to 16 years old.

Inman’s general pattern of behavior was to exchange messages with his victims using Snapchat and provide the victims with gifts, including marijuana, vape cartridges, money, and cell phones. Inman would then turn the conversation toward sexual issues, eventually requesting and receiving sexually explicit photographs and videos from his victims via Snapchat, in exchange for the victims continuing to receive gifts.  Inman also traveled to Grayson County, Virginia, to deliver gifts to his victims and meet with them in-person, including meeting at least one victim at a Grayson County school bus stop.  There is no evidence of actual physical contact between Inman and the victims.    

The investigation of the case was conducted by the Grayson County Sheriff’s Office, the Federal Bureau of Investigation, and the Virginia State Police. Assistant United States Attorneys Lena L. Busscher and Whit D. Pierce are prosecuting the case for the United States.  

DANVILLE, Va. -  Authorities in Durham County, North Carolina arrested Jorge Navarro, a former teller at URW Community Federal Credit Union in Danville, after two years of flight on federal charges of embezzling $617,000, Acting United States Attorney Daniel P. Bubar  and Special Agent in Charge Gerald W. Page of the Secret Service’s Richmond Field Office, announced today.

Navarro, 30, of Danville, was charged in a sealed indictment in October 2019 with one count of embezzlement and one count of passing counterfeit U.S. currency to URW Credit Union. The indictment was unsealed last week following Navarro’s arrest in North Carolina.

According to court documents, Navarro was the head teller at a branch of URW Community Credit Union. Between July 2017 and September 2018 Navarro allegedly embezzled $617,000 from the credit union, replacing the money he stole with counterfeit bills.

Following the illegal activity alleged in the indictment, Navarro fled and remained a fugitive until his arrest on March 31, 2021 in North Carolina. According to court documents filed in the Middle District of North Carolina, on March 31, 2021, Durham, N.C. police responded to a report of gunshots. When officers arrived, they encountered Navarro, who was using a fake name. Navarro was covered in blood and fleeing the scene of the reported gunfire. Police searched an apartment being used by Navarro and discovered cocaine and several firearms. They also found multiple forms of false identification, leading to Navarro’s arrest.  

The investigation of the case was conducted by the Secret Service and Danville Police Department. Assistant United States Attorney Rachel Swartz is prosecuting the case for the United States.  

HARRISONBURG, Va. – Abel Gallegos Hernandez, an inmate serving prison time in Georgia, who coordinated the distribution of more than 500 grams of methamphetamine using drug packages hidden in tires of vehicles being shipped from New Mexico to Virginia, was sentenced last week in U.S. District Court to 180 months in federal prison. Acting United States Attorney Daniel P. Bubar and Special Agent in Charge Raymond Villanueva for HSI’s Washington, D.C. field office announced the sentence today.

Hernandez, 30, pleaded guilty in June 2020 to one count of conspiring to distribute 500 grams or more of methamphetamine and one count of aiding and abetting another’s attempt to knowingly and intentionally possess with the intent to distribute 500 grams or more of methamphetamine.

According to court documents, in June 2018, while incarcerated in the Bureau of Prisons in Georgia, Hernandez was actively involved in the trafficking of virtually pure methamphetamine into the Western District of Virginia.  

Using Facebook and a contraband cellphone from inside McRae Correctional Facility in Georgia, Hernandez arranged for the delivery of four separate shipments of methamphetamine from New Mexico to the Waynesboro area. The shipments, occurring between January and June of 2018, totaled nearly 30 kilograms of pure methamphetamine. Hernandez arranged for the drugs to be hidden inside the tires of vehicles being hauled on tractor-trailer car-haulers.

The investigation of the case was conducted by Homeland Security Investigations, Waynesboro Police Department, the Drug Enforcement Administration and the New Mexico State Police. Assistant United States Attorney Ronald M. Huber prosecuted the case for the United States.  

ABINGDON, Va. – A Castlewood, Virginia man, who illegally possessed military grade explosives, was sentenced yesterday  in U.S. District Court in Abingdon to 72 months in federal prison, Acting United States Attorney Daniel P. Bubar and Charlie Patterson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives Washington Field Division  (ATF) announced.

Thomas Blake Hill, 21, pleaded guilty in November 2020 to two counts of possessing and selling explosive materials that had been shipped in interstate or foreign commerce.

Hill, a convicted felon, attempted to trade military grade C-4 explosives M-60 ignitors for methamphetamine.

The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Virginia State Police and the Sheriff’s Offices of Russell and Washington County. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.  

ABINGDON, Va.- Jaap Willem Lijbers, a Dutch national and member of the Bugaloo Bois, pleaded guilty yesterday to illegally possessing a firearm while being unlawfully present in the United States. Acting United States Attorney Daniel P. Bubar and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division announced the arrest today.

Lijbers, 27, pleaded guilty yesterday to one count of possessing a firearm while being unlawfully present in the United States. Lijbers was living in the United States on an I-94 Visa that expired on May 20, 2014. A review of immigration records showed that Lijbers never applied for adjustment or readmission.

According to court documents, Lijbers, who was residing in Raven, Va., frequently coordinated and communicated online with members of the Bugaloo Bois, a loosely connected group of individuals espousing violent anti-government sentiments.  During some of these interactions, court documents allege that Lijbers encouraged other members of the Bugaloo Bois group to attend political rallies and commit acts of violence, to include taking over government buildings.  Lijbers also encouraged others to participate in violent conduct against law enforcement officers in a “pig roast.”

The investigation of the case was conducted by the Federal Bureau of Investigation and the Department of Homeland Security (DHS) Homeland Security Investigations (HSI). Assistant United States Attorney Christopher Kavanaugh is prosecuting the case for the United States.

ABINGDON, Va.-  Travis Kilgore, a Wise, Va., man who conspired to file for fraudulent pandemic unemployment benefits, pleaded guilty today in U.S. District Court in Abingdon to charges he conspired with others to commit mail fraud and defraud the government of more than $182,474, Acting United States Attorney Daniel P. Bubar and Jonathan Mellone, Acting Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General announced today.

Kilgore, 34, waived his right to be indicted and pleaded guilty today to a two-count Information charging him with one count of conspiracy to defraud the government and one count of conspiracy to commit mail fraud.

“During a worldwide pandemic, Kilgore and his co-conspirators defrauded the government and stole funds targeted to help the most vulnerable in society, who had lost their jobs,” said Acting U.S. Attorney Bubar today. “I am grateful for the Department of Labor and our state partners, whose hard work brought Kilgore to justice, and demonstrate the importance of the integrity of these vital programs.”

“Pandemic unemployment insurance benefits provide needed assistance to qualified individuals who suffered a loss of employment due to the COVID-19 Pandemic. The defendant and his co-conspirators took advantage of this program by lying about their eligibility when filing for Pandemic unemployment insurance for themselves and others. The Office of Inspector General will continue to work diligently with the U.S. Attorney’s Office, the Virginia Employment Commission, and our law enforcement partners to protect the integrity of the unemployment insurance system from those who choose to exploit the program” said Jonathan Mellone, Acting Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General.

Kilgore admitted today that he, and others, developed a scheme beginning in May 2020 to defraud the United States and the Virginia Employment Commission (VEC) through the filing of fraudulent claims for pandemic unemployment benefits.

According to court documents, Kilgore and others filed claims for pandemic unemployment benefits through the VEC website. The scheme involved submitting claims for various individuals, including Kilgore and others, who were not eligible to receive pandemic unemployment benefits.  Kilgore lied on the filings as part of the scheme to appear eligible for benefits.  Because pandemic unemployment benefits were paid weekly, Kilgore reverified and re-certified the false statements on numerous occasions throughout the scheme.

In all, Kilgore filed claims for approximately 21 other individuals, causing at least $182,474 in false claims to be have been paid.

The investigation of the case was conducted by the Department of Labor-Office of the Inspector General and the Internal Revenue Service – Criminal Investigation, the Norton Police Department, and the Russell County Sheriff’s Office. Assistant United States Attorney Daniel J. Murphy is prosecuting the case for the United States.    

LYNCHBURG, Va. -  Eric Joseph Gravette, who was convicted in September 2020 of federal drug conspiracy and weapons charges, was sentenced recently in U.S. District Court in Lynchburg to 262 months in federal prison, Acting United States Attorney Daniel P. Bubar, Lynchburg Police Chief Ryan Zuidema, and Charlie Patterson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives Washington Field Division  (ATF) announced today.

Gravette, 37, of Madison Heights, pleaded guilty in September 2020 to one count of conspiracy to distribute 500 grams or more of methamphetamine, one count of possession with the intent to distribute 50 grams or more of methamphetamine, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of possessing a firearm as a convicted felon. Gravette, who agreed that he was a career offender based upon his criminal record, had recently been released from serving a state sentence for drug distribution prior to committing these offenses.

According to the government’s evidence, on June 24, 2018, the Lynchburg Police Department responded to a report of a suspicious vehicle at a local restaurant. When officers arrived, the driver eluded law enforcement by driving down an embankment and fleeing on foot. Inside the vehicle, police recovered approximately 255 grams of meth, 132 grams of cocaine, and 304 grams of marijuana. On the ground outside the driver’s door they discovered a Smith & Wesson 9mm firearm. Subsequent investigation revealed that Gravette was in fact the driver of the vehicle, possessed the weapon, and in just under a year, had been involved in the trafficking of 9 kilograms of methamphetamine.

The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Lynchburg Police Department, and the U.S. Marshals Service. Assistant United States Attorney Coleman Adams prosecuted the case for the United States.

ABINGDON, Va. – Kathleen Littleford, a Bristol, Virginia, woman who fraudulently opened several bank accounts, deposited counterfeit checks, and shipped large quantities of cash to various individuals across the country in a scam involving a man with whom she was involved in an online relationship, was sentenced today in U.S. District Court here to three years’ probation, four months of which must be spent in home confinement, Acting United States Attorney Daniel P. Bubar announced today.

Littleford, 77, previously pleaded guilty to one count of conspiracy to execute a scheme to defraud financial institutions to obtain money by false pretenses.

According to court documents, beginning in 2018, Littleford opened a series of bank accounts for the purpose of depositing counterfeit checks and receiving fraudulent transfers of funds from other banking institutions. She did so to assist a man she met online calling himself Frank Peterson. Beginning with his introduction and continuing to the present day, Littleford engaged in an amorous relationship with “Peterson”, engaging in frequent emailing, text messaging, Facebook messaging, and phone call communications.

“Peterson” made representations to Littleford over the course of their relationship that he made a lot of money in a trade deal in Dubai, that those funds were encumbered by the IRS due to taxes he owed, that he had a lot of money tied up in stocks, and that he needed Littleford’s help receiving funds from banking institutions because he could not transfer money himself, due to the IRS claims on his accounts.

Littleford admitted today that premised on Peterson’s representations and enticed by a reciprocal love and devotion he showed her, Littleford undertook extraordinary measures to comply with Peterson’s fraudulent financial requests. Littleford knew what she was doing was wrong, but knowingly and willfully engaged in the conduct anyway.

Over the course of the scheme, Littleford opened accounts with at least five local banks and fraudulently received more than $190,000 in funds to which she was not entitled.

The investigation of the case was conducted by the Internal Revenue Service and the Russell County Sheriff’s Office. Assistant United States Attorney Daniel J. Murphy is prosecuting the case for the United States. 

ABINGDON, Va. – Daniel Lee Wade, an inmate at the United States Penitentiary (USP) Lee in Jonesville, Virginia, was sentenced yesterday in U.S. District Court in Abingdon to 48 months in prison for unlawfully possessing weapons inside the prison, Acting United States Attorney Daniel P. Bubar announced today.

Wade, 26, of Greenville, North Carolina, pleaded guilty on October 28, 2020 to one count of possessing contraband inside a prison. 

According to court documents, Wade possessed two prison made knives on March 28, 2020.  One weapon measured 6-and one-half inches in length and 1-inch in width and was made from grey metal sharpened to a knife edge point.  The other weapon measured 6-inches long and came to a sharpened point.  Both had cloth handles and one had a black boot string attached as a lanyard. 

The investigation of the case was conducted by the Federal Bureau of Prisons.  Special Assistant United States Attorney Debbie Stevens prosecuted the case for the United States.

ABINGDON, Va.- Hunter Royal, a Marion, Virginia man who used Snapchat to contact numerous underage girls and coerce them into sending him sexually explicit photos, was sentenced yesterday in U.S. District Court in Abingdon to 324 months in federal prison, Acting United States Attorney Daniel P. Bubar and Special Agent in Charge Raymond Villanueva for HSI’s Washington, D.C. field office announced.

Royal, 23, previously pleaded guilty to one count of persuading, inducing, enticing, and coercing minors to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct. 

“Royal exploited these minor victims, meeting them online, and is a parent’s worst nightmare.  This lengthy sentence ought to send a clear message to would-be online predators: your behavior will not be tolerated, and you will be brought to justice,” Acting U.S. Attorney Bubar said.  “These cases are some of the most important that we do, and I am grateful for the hard work of Homeland Security and our other federal and local law enforcement partners, who will continue to work tirelessly to vindicate the interests of vulnerable victims and protect them from harm.”

“This individual preyed upon minors, using fear and shame to extort exploitative material. The sentence handed down today reflects the seriousness of this crime,” said Special Agent in Charge Raymond Villanueva for HSI’s Washington, D.C. field office. “HSI is committed to investigating and seeking prosecution for those who seek to exploit children online.”

Royal admitted to using several different Snapchat accounts to contact minor females. His general pattern was to pretend to be a young female on Snapchat and initiate contact with other, actual young females. Royal would then exchange messages with his victims to gain their trust, sometimes by sending the victim photos of a young girl he was claiming to be. Royal would steer the conversation toward sexual issues and convince his victim to take and send sexually explicit photos of herself.  He would then use blackmail threats or other coercive tactics to obtain more sexually explicit images from his victim. While carrying out this scheme, Royal also distributed some of the images. 

Some of the victims Royal targeted were as young as 12-years-old.

After he was first arrested and jailed, Royal asked a family member to buy a “burner” phone, log in to his Snapchat accounts using public wi-fi, and delete the contents of his Snapchat accounts.  Ultimately, however, Royal’s attempt to obstruct justice failed.   

The investigation of the case was conducted by Homeland Security Investigations, with assistance from the U.S. Marshals Service, the Marion Police Department, and the Port St. Lucie Police Department. Assistant United States Attorney Whit Pierce prosecuted the case for the United States.  

ROANOKE, Va. –  As the world continues to operate in a more virtual environment due to COVID-19 restrictions, Acting United States Attorney Daniel P. Bubar and Christopher R. Derrickson, Acting Special Agent in Charge of the FBI’s Richmond Division are reminding people to continue to be vigilant when it comes to keeping your family safe online.

“The worldwide pandemic caused by COVID-19 has changed the way we interact with our community. Many of our school, work, and social events are now conducted online, making the need to be aware of the threats posed even greater,” Acting United States Attorney Bubar said today. “Parents need to be aware of who their children are communicating with, what apps they are using, and whether the games they are playing have a messaging or chat function. Predators can use all of these mechanisms to infiltrate our lives. The United States Attorney's Office and our partners at the FBI are doing our part to keep you safe but we want parents, grandparents, and others to have as much information as possible to stay vigilant and protect their families as well.”

FBI Acting Special Agent in Charge Derrickson urges parents to talk to their kids about the dangers of the internet and what to do if someone approaches them with an inappropriate request.

“Sextortion is not a crime defined by sex, race, education, geography, or a family's affluence - any child can be a victim of sexual exploitation.  The FBI is fully committed to working with our law enforcement partners to educate adults and children, investigate allegations, provide appropriate victim services, and prosecute predators,” Acting Special Agent in Charge Derrickson said today. “Prompt reporting is key in stopping these crimes, capturing the perpetrator, and preventing further victimization.  The FBI relies on assistance from the community, especially in these types of sensitive investigations.  Please do not be afraid or ashamed to contact authorities or tell a trusted adult to report suspected or actual exploitation.” 

According to Acting U.S. Attorney Bubar, it is an unfortunate reality that individuals contact minors online and attempt to extort them, seeking inappropriate pictures or videos.

Last month in federal court in Roanoke, the U.S. Attorney’s Office prosecuted a Roanoke man who had been communicating with a minor. Over the course of several months, the defendant used online messaging apps to communicate with the victim, and several other minors, in attempts to convince them to send him nude pictures and videos of themselves.

Acting SAC Derrickson offered some advice on how parents can keep their children safe while navigating the ever-expanding online world:

Advice for Children:

1. Be selective about what you share online.
2. Be cautious of anyone you meet online for the first time - block/ignore messages from strangers.
3. Know that people can pretend to be anything/anyone online.  Images can be altered or stolen.
4. Be suspicious if you meet someone on one app and they ask you to move to a different platform.
5. Know and assume that any content you create online  -- texts, photos/images or videos -- will be made public, permanently.  Nothing "disappears" online, and once sent you have no control over where it goes.
6. Be willing to ask for help.

Advice for Adults:

1. Maintain active engagement with your children.  Open the door and encourage an open and honest conversation about online activity and possible victimization.
2. Place limits on internet use.
3. Consider shutting down Wi-Fi during overnight hours.
4. Review settings on social media and ensure they are set at the strictest level possible.
5. Spot check phones and other devices.
6. Know what apps are being used.
7. Know who is communicating with your child.
8. Be aware of what is being downloaded.
9. Know passwords to electronic devices.

Most importantly, if you feel you may have been a victim, or have seen something online you believe may be illegal, report it immediately by calling your local police department or contacting the FBI at:

• FBI Richmond 804-261-1044
• FBI Tip-Line, 1-800-CALL-FBI (225-5324)
• FBI Online Tipline:  https://tips.fbi.gov/

There are also more resources available at fbi.gov/about/community-outreach/safe-online-surfing-sos-program and sos.fbi.gov/en/.

ROANOKE, Va. – Jeffery Leedy, a former emergency medical services worker for Roanoke County Emergency Medical Services, pleaded guilty yesterday in U.S. District Court in Roanoke to tampering with vials of fentanyl and hydromorphone, Acting United States Attorney Daniel P. Bubar announced.

Leedy, 31, pleaded guilty to one count of tampering with a consumer product (fentanyl and  hydromorphone) that affects interstate commerce with reckless disregard for the risk that another person will be placed in danger of death or bodily injury. At sentencing, Leedy faces a maximum possible sentence of up to ten years in prison and a fine of up to $250,000.

“When Leedy tampered with fentanyl and hydromorphone, he put patients’ care at risk, violated the trust we place in our health care workers, and committed a serious crime,” said Acting U.S. Attorney Bubar today.  “I applaud the good work carried out by FDA and the Virginia State Police to ensure the public receives unadulterated medication.” 

According to court documents, from November 2018 to June 2019, Leedy tampered with at least 50 vials of fentanyl and hydromorphone while working at Centra Lynchburg General Hospital and as an Emergency Medical Services (EMS) worker for Roanoke County Emergency Medical Services.

On May 16, 2019, a Roanoke City EMS ambulance crew member discovered a suspected tampered vial of fentanyl while on an EMS call. When he attempted to administer the vial to a patient, he noticed the cap was not secured and believed the vial has been tampered with. Further investigation revealed that Leedy had tampered with the vial by removing the fentanyl and replacing it with saline.

A supervisor with the Roanoke County EMS queried the access card database and determined that Leedy had been accessing the rescue squad building at night, while he was not working, to take the fentanyl. Further investigation revealed at least 50 vials of fentanyl and hydromorphone had been tampered with.

The investigation of the case was conducted by the Food and Drug Administration – Office of Criminal Investigations and Virginia State Police. Assistant United States Attorney Randy Ramseyer is prosecuting the case for the United States.

HARRISONBURG, Va. – Cironta Commander, who pleaded guilty to possession of a firearm by a convicted felon and possession with the intent to distribute cocaine, was sentenced this week in U.S. District Court in Harrisonburg to 90 months in federal prison and ordered to forfeit his firearms, Acting United States Attorney Daniel P. Bubar, Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division, and Jarod Forget, Special Agent in Charge of the Drug Enforcement Administration’s Washington Division announced today.

Commander, 22, of Berryville, Virginia, pleaded guilty in December 2020 to one count of possession of a firearm by a convicted felon and one count of possession with the intent to distribute and distributing 28 grams or more of cocaine base.

According to court documents, on January 27, 2020 an officer with the Berryville Police Department initiated a traffic stop of Commander. As the officer returned to his cruiser to investigate a potential discrepancy in Commander’s paperwork, Commander sped from the scene at a high rate of speed. When the defendant approached an intersection, he failed to stop at a stop sign and drove into a grassy area between an apartment building and a tree, where there were people present in the common area. As the defendant reentered the roadway, he drove toward a dead end and crashed into a tree.

Commander attempted to flee the scene on foot while carrying a backpack but was detained. In a search of the backpack, officers found a loaded Smith & Wesson, 9mm, semi-automatic pistol containing five rounds of ammunition. In addition, officers found approximately 3.66 oz. of marijuana, $4,738 in cash, a bundle of clear plastic bags commonly used for narcotics distribution, and a small plastic bag of white powder with 2.19 grams of powder cocaine. At the time of his possession of the firearm, Commander was a previously convicted felon prohibited from legally possessing a firearm.

Local police executed a search warrant at the defendant’s residence in Berryville, Va., on February 3, 2020. In the basement of the residence, officers found three rifles and $4,392. In the closet in the master bedroom, agents located a shoebox with an additional $11,000 in cash.

Additionally, during the search of a Cadillac Escalade parked in the driveway, agents recovered an access card for a storage unit in Stephens City, Virginia. Agents went to that location and learned the unit had only been leased following Commander’s arrest. After obtaining a search warrant of the location, agents recovered a variety of narcotics, including 191.64 grams of fentanyl, 32.96 grams of heroin, 349.47 grams of powder cocaine and 181.83 grams of cocaine base.

The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, the Berryville Police Department, the Virginia State Police’s Northwest Virginia Regional Drug Task Force, the Clarke County Sheriff’s Office, and the Office of the Clarke County Commonwealth’s Attorney. Assistant United States Attorney Christopher Kavanaugh prosecuted the case for the United States.

ABINGDON, Va.-  A Max Meadows, Virginia man, who willfully filed false tax returns for tax years 2014 through 2016, pleaded guilty yesterday in U.S. District Court in Abingdon, to a federal felony of willfully filing a false tax return, Acting United States Attorney Daniel P. Bubar and Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service-Criminal Investigations announced today.

Matthew Wood Ridgaway, 61, waived his right to be indicted and pleaded guilty yesterday to one count of willfully filing a false tax return. A sentencing, Ridgaway faces a maximum possible sentence of three years in prison and/or a fine of $250,000. A sentencing hearing has been scheduled for June 17, 2021, at 10:30 a.m.

According to court documents, for tax years 2014 through 2016, Ridgaway failed to disclose on his Forms 1040 income tax returns over $130,000 in payments he received as rental income from  properties he owns.

The investigation of the case was conducted by the Internal Revenue Service - Criminal Investigation.  Assistant United States Attorney Randy Ramseyer is prosecuting the case for the United States.  

ABINGDON, Va. – A pair of Southwest Virginia men pleaded guilty last week in U.S. District Court to illegally selling firearms without a license at the Indian Mountain Trade Center in Wise, Virginia, Acting United States Attorney Daniel P. Bubar and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives Washington Field Division announced today.

In separate hearings held Friday, March 19, James Michael Boggs, 66, and Tommy Roger Dotson, 65, each pleaded guilty to one count of willfully engaging in the business of selling firearms without a license.  Boggs is from Pound, Virginia, and Dotson is from Clintwood, Virginia.   

According to court documents, in October 2019 the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) began an investigation of firearm sales at the Indian Mountain Trade Center to identify and monitor individuals who appeared to be in the business of dealing firearms without a Federal Firearms License (FFL). Investigators with the ATF observed Boggs and Dotson associating with each other and regularly selling firearms to Trade Center attendees.

Dotson sold firearms from a sales booth, where he regularly displayed 25 to 50 firearms for sale.  Boggs kept firearms in his truck and made sales from his truck.  During the investigation, both men sold multiple firearms to undercover agents on various occasions.  Boggs sold firearms to an undercover agent on three occasions, including nine handguns, a shotgun, and an AR-style rifle.  Dotson also sold firearms to undercover agents on three occasions, including three handguns and two rifles.       

During the time of these sales, neither Dotson nor Boggs possessed a Federal Firearms License, which is required to engage in the business of dealing firearms.  Under the respective plea agreements, Dotson will relinquish 59 seized firearms and more than $13,000 in cash, and Boggs will pay a $5,000 fine.  Both men face up to five years in prison.    

The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Virginia State Police. Assistant United States Attorneys Zachary T. Lee and Whit D. Pierce are prosecuting the case for the United States.

ABINGDON, Va. – Leelynn Danielle Chytka pleaded guilty today in U.S. District Court in Abingdon, Va., to charges that she conspired with others to defraud the government of more than $499,000, commit mail fraud, and commit aggravated identify theft, Acting United States Attorney Daniel P. Bubar and  Acting Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General announced today.

Chytka, 28, of Russell County, Virginia, waived her right to be indicted and pleaded guilty today to a four-count Information charging her with one count of conspiracy to defraud the government, one count of conspiracy to commit mail fraud with respect to benefits authorized and paid in connection with a presidentially declared major disaster or emergency, one count of aggravated identity theft, and one count of distribution of suboxone.

“Over the past year, Virginians have endured one of the worst pandemics our country has ever seen. During this time, jobless claims in the Commonwealth dramatically increased, as unemployment spiked. While some struggled to make ends meet, this defendant and her co-conspirators worked to defraud an unemployment system which exists as a safety net for those in need,” Acting United States Attorney Daniel P. Bubar said today. “They filed multiple fraudulent unemployment claims in an effort to collect almost $500,000 in benefits they were not entitled to—benefits that could have gone to Virginians that needed it. I am grateful to the Department of Labor and the Internal Revenue Service – Criminal Investigation, the Norton Police Department, and the Russell County Sheriff’s Office for their diligence in bringing this conspiracy to justice.”

“Pandemic unemployment insurance benefits are a lifeline for those individuals who are qualified and in need. The Defendant along with her co-conspirators, engaged in a scheme to defraud the Virginia Employment Commission by filing for unemployment insurance using the identities of individuals, many of whom were incarcerated and not entitled to receive benefits.  The Office of Inspector General will continue to work diligently with the U.S. Attorney’s Office, the Virginia Employment Commission, and our law enforcement partners to protect the integrity of the unemployment insurance system from those who choose to exploit the program,” said Jonathan Mellone, Acting Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General.

Chytka admitted today to leading a conspiracy to commit fraud against the United States in connection with a scheme involving the filing of fraudulent claims for pandemic unemployment benefits.

According to court documents, Chytka, and others, conspired to collect personal identification information of more than 35 co-conspirators, including 15 inmates in the custody of the Virginia Department of Corrections, and to file fraudulent claims of pandemic-related unemployment.

Over the course of nine months, Chytka filed fraudulent claims for at least 37 individuals, with a total actual loss to the United States of at least $499,000.

The investigation of the case was conducted by the Department of Labor-Office of the Inspector General and the Internal Revenue Service – Criminal Investigation, the Norton Police Department, and the Russell County Sheriff’s Office. Assistant United States Attorney Daniel J. Murphy is prosecuting the case for the United States.  

ABINGDON, Va.- Uzma Ehtesham, a Wise, Virginia psychiatrist who defrauded Virginia Medicaid and Medicare by fraudulently billing these programs for services not performed, was sentenced yesterday to two years’ probation, six months of which must be spent on home detention, Acting United States Attorney Daniel P. Bubar and Virginia Attorney General Mark Herring announced today.

Ehtesham, 52, pleaded guilty in November 2020 to a one-count Information charging her with health care fraud.

“Eradicating health care fraud remains a top priority for this office,” said Acting U.S. Attorney Bubar today.  “When people like Ehtesham’s steal from our state and federal programs, they divert funds from the most vulnerable in our communities.  We will continue to work closely with the local, state, and federal law enforcement partners whose good work brought Ehtesham to justice.”

“Health care providers and other individuals who defraud our health care system just to line their own pockets are not only stealing from Medicaid and Medicare, but they are also stealing from taxpayers and they must be held accountable,” said Attorney General Herring. “I want to thank our state and federal partners for their cooperation on this case, as well as my Medicaid Fraud Control Unit for their hard work and dedication.”

According to court documents, from 2010 to 2016, Ehtesham devised a scheme to defraud Virginia Medicaid and Medicare by billing for individual office visits when she often saw patients in groups.  Frequently, Ehtesham would meet with patients in groups of two to four in a single visit, but subsequently bill as if she had met with them independently. 

In addition, Ehtesham billed for extensive, time consuming, and costly office visits when she was conducting brief office visits with a patient.  In many instances, Ehtesham would only meet with a patient for five to six minutes and then billed for services not supported by required documentation.

During the time of the investigation, Ehtesham was seeing more than 50 patients per day. Prescriptions were often written in advance of a scheduled visit by the office staff, placed in patient files, and signed by Ehtesham during the brief patient visit. At times, Ehtesham did not employ any medically certified staff to compile a patient’s vital statistics – such as blood pressure, pulse, height and weight? -- at each visit. Instead, vital statistics were copied from previous patient visits to each new visit information sheet at Ehtesham’s direction.

As part of the scheme, Ehtesham received $500,000 in fraudulently obtained proceeds from Virginia Medicare and Medicaid.

As part of the plea agreement, Ehtesham is required to pay a total of $1,000,000 in restitution, fines, and forfeiture.

The investigation of the case was conducted by the Virginia Office of the Attorney General’s Medicaid Fraud Control Unit, Norton Police Department, Southwest Virginia Drug Task Force, and Virginia State Police.  The following agencies assisted with the execution of a search warrant during the investigation:  Big Stone Gap Police Department, Virginia Alcohol and Beverage Control Special Investigations Unit, Wise County Commonwealth’s Attorney’s Office, Wise County Sheriff’s Office, and Wise Police Department.  Special Assistant United States Attorney Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Major Crimes and Emerging Threat Unit, is prosecuting the case for the United States.  Virginia Assistant Attorney Generals and Special Assistant United States Attorneys Janine Myatt and Joe Hall also assisted with the investigation.

HARRISONBURG, Va. – Paul Wayne Shell, a convicted felon prohibited from possessing explosive materials, pleaded guilty today in U.S. District Court to possessing a series of military grade explosives items, Acting United States Attorney Daniel P. Bubar and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Washington Field Division announced today.

Shell, 51, pleaded guilty yesterday to one count of possession of explosive materials by a prohibited person. At sentencing Shell faces up to 10 years in prison and a fine of up to $250,000.

According to court documents, in August 2019 the ATF and a Shenandoah County Fire Marshal received information that Shell was in possession of trip mines, dummy mines, tear gas, and other military grade items that he was willing to sell.

On August 29, 2019, investigators with ATF setup a controlled buy from Shell in a parking lot in Quicksburg, Virginia. At that time, Shell sold investigators smoke grenades, tear gas, trip wires, red flare rockets, and hand grenade demos, for $900. 

In an interview with law enforcement on September 3, 2019, Shell admitted he stole the items 10 years earlier from a farm where he worked. Shell told investigators he believed the explosives were being sold to a motorcycle gang.

The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Shenandoah County Fire Marshal. Assistant United States Attorney Heather L. Carlton is prosecuting the case for the United States.  

ABINGDON, Va.- Brett Becker, the owner of Accelerated Genetix, LLC, was sentenced yesterday in U.S. District Court in Abingdon to six months home confinement for introducing unapproved new drugs into interstate commerce, Acting United States Attorney Daniel P. Bubar announced today.

Becker, 32, currently of Concord, Michigan, and Accelerated Genetix, LLC, a sport supplement company based in Argyle, Texas, pleaded guilty in December 2020 to one count of distributing unapproved new drugs with the intent to mislead and defraud the FDA and consumers.

“For years, Becker and his company put their customers’ health at risk by unlawfully distributing drugs without FDA approval, which is a serious crime,” said Acting U.S. Attorney Bubar. “This case should serve as an additional notice that the marketing and distribution of unapproved SARMS will not be tolerated and that we will work with FDA to prosecute those who do.”

“Sports supplements that are manufactured and distributed outside the FDA’s oversight and that contain unapproved and possibly toxic ingredients endanger the health of unsuspecting consumers,” said Assistant Commissioner for Criminal Investigations Catherine A. Hermsen, FDA Office of Criminal Investigations. “Today’s actions represent our continued commitment to pursuing and bringing to justice those who mislead the public and intentionally attempt to subvert the regulatory functions of the FDA through the distribution of unapproved and potentially dangerous products.”

Becker admitted that from approximately January 2016 to March 2019, he and his company unlawfully distributed Selective Androgen Receptor Modulators (“SARMs”) and other substances that the FDA has not approved, including Ostarine and Ligandrol. SARMs are synthetic chemicals designed to mimic the effects of testosterone and other anabolic steroids. The FDA has long warned against the use of SARMs like those found in Accelerated Genetix products, including stating in a public 2017 warning letter to another firm that SARMs have been linked to life-threatening reactions including liver toxicity, and have the potential to increase the risk of heart attack and stroke.

Becker also admitted that he intended to mislead and defraud the FDA and consumers by importing these ingredients even after learning they were mislabeled by the distributor when they were shipped from China to the United States; misrepresenting Accelerated Genetix products as “dietary supplements” to create the impression that they were safe and legal to use; and manufacturing a custom order of a SARMs product despite knowing it was illegal to introduce the unapproved new drug into interstate commerce.

In connection with his plea, Becker agreed to forfeit approximately $3.5 million, reflecting the amount of Accelerated Genetix products sold across the United States through retail outlets and over the internet.

Assistant United States Attorney Randy Ramseyer of the U.S. Attorney’s Office for the Western District of Virginia and Trial Attorney Speare Hodges of the Department of Justice Civil Division’s Consumer Protection Branch are prosecuting the case. This matter was investigated by the Food and Drug Administration’s Office of Criminal Investigations.

ABINGDON, Va.-  Leonardo Acevedo-Vazquez, an inmate at the USP Lee in Jonesville, Virginia, was sentenced yesterday for unlawfully possessing a weapon inside the prison, Acting United States Attorney Daniel P. Bubar announced today.

Acevedo-Vazquez, 28, was sentenced yesterday to 33 additional months of incarceration and a 3-year term of supervised release.

The investigation of the case was conducted by the Federal Bureau of Prisons.  Special Assistant United States Attorney Steven J. Luckie prosecuted the case for the United States.

ROANOKE, Va. -Monta Jordan, a convicted drug kingpin who was subject to one of the largest fentanyl seizures in Virginia at the time, was sentenced yesterday in U.S. District Court in Roanoke to 240 months in federal prison, Acting United States Attorney Daniel P. Bubar; Jared Forget, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Washington Division, and Col. Gary T. Settle, Superintendent of the Virginia State Police announced today.

In February 2020, a jury convicted Jordan, 45, a.k.a. “Ghost” and “Tae” of Roanoke, of one count of conspiring to distribute heroin, fentanyl, methamphetamine, and cocaine, one count of possession with the intent to distribute fentanyl, one count of attempting to possess with the intent to distribute cocaine, one count of attempting to possess with the intent to distribute heroin, and possession of one or more firearms in furtherance of the overall drug conspiracy.

“Monta Jordan oversaw a significant drug distribution network that pumped various deadly narcotics into the Roanoke Valley, including fentanyl,” said Acting U.S. Attorney Bubar today.  “This significant sentence is the product of a lengthy investigation and trial, that could not have been accomplished without the collaboration between our many federal, state and local law enforcement partners, whose hard work brought Jordan to justice.”

“Fentanyl is responsible for killing thousands of people across our area,” Special Agent in Charge Forget said today. “With the help of federal, state, and local partners we are working hard on impactful cases such as this, to halt the distribution of these deadly drugs in our communities and throughout the country.”

Evidence at trial indicated that Jordan was responsible for trafficking more than 54 kilograms of narcotics into this region as part of an extensive drug operation that began no later than the summer of 2016 and extended even beyond his arrest on federal charges in August 2017.   Jordan received deliveries of these narcotics at various locations in the Roanoke Valley and made cash payments toward his purchases of as much as $320,000 during scheduled meetings.

During trial in February 2020, witnesses explained that Jordan trafficked large quantities of narcotics into the Roanoke-area through by mail and through couriers, who were compensated in various ways for their willingness to transport narcotics by car from places such as New York, North Carolina, Tennessee, and Ohio.  Further evidence established that Jordan received narcotics by mail at the residential addresses of his associates and, in turn, mailed large quantities of United States currency to designated recipients in those states.  For example, during the course of the investigation, the United States Postal Inspection Service intercepted two packages mailed by Jordan within the span of one week, containing collectively just under $100,000 in cash.  In one instance, agents found a basketball in one of the contraband packages, wrapped in carbon paper and surrounded by miscellaneous chair cushions.  The basketball itself had been cut and contained $49,950 in rubber-banded currency. 

Jurors also heard evidence regarding Jordan’s methods of transporting narcotics into the Roanoke-area by one or more vehicles outfitted with concealed traps.  Among other vehicles, Jordan owned a burgundy Ford Fusion, which he identified in his own text messages as the “Batmobile.”  On August 5, 2017, surveillance officers conducted a traffic stop of a burgundy Ford Fusion dubbed by Jordan himself as the “Batmobile.” The car was in route from New York to Roanoke and stopped by law enforcement agents near Harrisonburg.  During a subsequent search of that vehicle, specially trained interdiction officers with the Virginia State Police discovered a secret compartment, or trap, underneath the factory-installed carpet in the trunk of the car.  They found approximately 4.5 pounds of fentanyl inside the trap, wrapped in smell-proof bags, and covered in an oily masking agent designed to defeat the scenting capabilities of K-9 drug dogs.  This fentanyl seizure was the largest in Virginia at the time, recovered by investigators at a time when the region was plagued with an increase in drug overdoses attributable in part to the increasing use of fentanyl as a cutting agent in heroin transactions.

The case against Jordan culminated in his arrest on August 10, 2017.  On that date, authorities recovered a package containing approximately one pound each of packaged cocaine and heroin, destined for Jordan.  They replaced the replaced the narcotics with sham, or fake, drugs designed to match the appearance and weight of the seized contraband.  During the subsequent arrest operation, agents made a controlled delivery of the package and observed Jordan as he retrieved and emptied the box along Highway 122 in Bedford County. 

Jordan was intercepted near the intersection of Highway 122 and Morgans Church Road in Bedford County.  In video footage of the ensuing police pursuit, Jordan could be seen throwing the sham drugs out the window of his vehicle and over a bridge, attempting to dispose of what he believed were genuine narcotics in his possession.  He was taken into custody shortly after the sham packages entered the creek below and has remained incarcerated since that time. 

Notwithstanding his arrest, witnesses indicated that Jordan successfully smuggled on or more phones into his cell at a local jail and used the phones to coordinate the delivery and distribution of narcotics from jail, while his case was pending trial. A known girlfriend and associate of Jordan’s, Amany Mohamed Raya, was convicted in January 2020 of attempting to smuggle one of these phones to Jordan in the spine of a fake binder designed to look like confidential legal mail.  In a coordinated effort by the United States Postal Inspection Service (USPIS), the Roanoke City Sheriff’s Department, the United States Marshals Service (USMS), and the Drug Enforcement Administration (DEA), authorities caught Jordan in possession of one of the contraband phones and successfully intercepted Raya’s fake legal mail before it could be delivered to Jordan. 

The investigation of this case  was led by the Drug Enforcement Administration, the Virginia State Police, the Roanoke City and Roanoke County Police Departments, the Salem Police Department,  the United States Postal Inspection Service, and members of the High Intensity Drug Trafficking Area Task Force (HIDTA), with invaluable assistance and support from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Air National Guard, the Department of Homeland Security, the United States Marshals Service, the Salem Police Department, the Roanoke Sheriff’s Office, and the Criminal Investigations Division of the Department of Motor Vehicles. 

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

Assistant United States Attorneys Kari Munro and Anthony Giorno prosecuted the case for the United States.

ROANOKE, Va. - A Roanoke man, who used an online chat website to engage in sexually explicit conversations with a 12-year-old child and later induced the victim to engage in sexually explicit conduct over video chat, was sentenced today in U.S. District Court here to 150 months in federal prison to be followed by 10 years of supervised release, Acting United States Attorney Daniel P. Bubar announced.

Roger Allen Bellini, 31, pleaded guilty in 2020 to one count of coercion and enticement of a minor and one count of possession of child pornography.  

“As this case demonstrates, online predators are all too real and willing to prey upon our children using computers,” Acting U.S. Attorney Bubar stated today.  “We hope that today’s sentence continues the healing process for the victim in this case and reinforces the need for continued vigilance as we spend increasing portions of our lives online.”

According to court documents, Department of Homeland Security (DHS) Homeland Security Investigations (HIS) learned that Bellini used an online messaging service to send and receive child pornography. Forensic review of his devices showed that Bellini possessed dozens of videos and hundreds of images of child pornography. HSI agents interviewed Bellini, who admitted to possessing child pornography. Bellini also admitted to using a video chat website to engage in sexually explicit communications with children. Specifically, Bellini admitted to communicating with a 12-year old child and used screen capture software to record his computer screen while he engaged in video chats with the minor. In these video chats, Bellini exposed his genitals and induced the minor to engage in sexually explicit conduct.

The investigation of the case was conducted by Department of Homeland Security- Homeland Security Investigations. Department of Justice Trial Attorney Leslie Fisher, Trial Attorney Eduardo Palomo, and Assistant United States Attorney Rachel Swartz prosecuted the case for the United States.

ABINGDON, Va.- Jaap Willem Lijbers, a Dutch national and member of the Bugaloo Bois, was arrested yesterday on a federal criminal complaint charging him with illegal possession of a firearm while being unlawfully present in the United States. Acting United States Attorney Daniel P. Bubar and Christopher R. Derrickson, Acting Special Agent in Charge of the FBI’s Richmond Division announced the arrest today.

Lijbers, 26, was living in the United States on an I-94 Visa that expired on May 20, 2014. A review of immigration records showed that Lijbers never applied for adjustment or readmission.

According to court documents, Lijbers, who was residing in Raven, Virginia, frequently coordinated and communicated online with members of the Bugaloo Bois, a loosely connected group of individuals espousing violent anti-government sentiments.  During some of these interactions, court documents allege that Lijbers encouraged other members of the Bugaloo Bois group to attend political rallies and commit acts of violence, to include taking over government buildings.  Lijbers also encouraged others to participate in violent conduct against law enforcement officers in a “pig roast.”

The investigation of the case was conducted by the Federal Bureau of Investigation and the Department of Homeland Security (DHS) Homeland Security Investigations (HSI). Assistant United States Attorney Christopher Kavanaugh is prosecuting the case for the United States.  

A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.

ABINGDON, Va. – Michael Dube, who formerly owned and operated American Toxicology Labs, was sentenced was today in U.S. District Court in Abingdon, Virginia to 36 months in federal prison. Acting United States Attorney Daniel P. Bubar and Virginia Attorney General Mark G. Herring made the announcement today.

Dube, 59, of Johnson City Tenn., previously pleaded guilty in U.S. District Court in Abingdon to two felony counts of health care fraud (one filed in the Western District of Virginia and one filed in the Eastern District of Kentucky).

“Michael Dube took advantage of health care funds, aimed at helping the most vulnerable, for his own greed,” Acting U.S. Attorney Bubar said today. “Today’s significant sentence demonstrates that health care fraud will not be tolerated, and is the product of close partnership between federal, state, and local law enforcement, whose collaboration brought the Dubes to justice.”

“Addressing the opioid crisis is an issue of great concern for our nation and remains a top public health priority for the FDA. It is crucial that treatment providers act with honesty and integrity in combatting the crisis,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations, Metro Washington Field Office. “In cooperation with our federal and state law enforcement partners, we will continue to investigate and bring to justice those who defraud federal programs.”

According to court documents, in March 2011, Michael Dube pleaded guilty in the Eastern District of Tennessee to one count of intentionally omitting information from reports as required under the Controlled Substances Act. As a result of his conviction, the Department of Health and Human Services [HHS] informed Dube in a letter dated June 29, 2012, that he was excluded from participating in any federal health care program.

Nonetheless, in May 2013, Michael and his wife, Regan Dube, established American Toxicology Labs [ATL] in Johnson City, Tennessee, with Regan Dube serving as the company’s registered agent, and using the couple’s home address as the principal office and mailing address. ATL then applied to participate in Medicare and Medicaid. On the applications, Regan Dube was listed as the owner of ATL, and Michael Dube’s name and participation in ATL was omitted.

ATL conducted urine screens for various entities who represented themselves to be opioid treatment facilities. Between May 1, 2014, and January 31, 2020, Medicare, Virginia Medicaid, Kentucky Medicaid and TennCare made payments to ATL that totaled approximately $8.5 million. During this time, Michael Dube made employment decisions, negotiated business arrangements with providers, and otherwise participated in the management of ATL.

In addition, Michael Dube also received kickback payments from third parties for referring individuals to those third parties for services for which payment was made (in whole or in part) by federal health care programs. These payments were deposited in Michael and Regan Dube’s personal checking account in a total amount of $441,646. Regan Dube was previously convicted and sentenced in connection with the scheme. 

As a result of their convictions, Regan and Michael Dube will pay a total of $9,015,046, plus interest, divided between special assessments, fines, restitution, and forfeiture. They will have to repay all of the money they received from Medicare and Medicaid programs.

The investigation of the case was conducted by the Food and Drug Administration Office of Criminal Investigations, Virginia Medicaid Fraud Control Unit of the Office of the Attorney General, the Department of Health and Human Services Office of the Inspector General, the Drug Enforcement Administration, the Virginia State Police, and Internal Revenue Service – Criminal Investigations, and the Tennessee Bureau of Investigation. The prosecution of the case was conducted by the United States Attorneys’ Offices for the Western District of Virginia (Special Assistant United States Attorney and Assistant Attorney General Janine Myatt and Assistant United States Attorneys Whit Pierce, Krista Frith and Randy Ramseyer) and the Eastern District of Kentucky (Assistant United States Attorneys Andrew Smith and Gregory Rosenberg). The United States Attorney’s Office for the Eastern District of Tennessee provided valuable assistance.

ROANOKE, Va. – Acting United States Attorney Daniel P. Bubar and Virginia Attorney General Mark G. Herring announced today the finalization of a $2.1 million civil resolution with Allergy and Asthma Associates Inc. [AAA], a Roanoke-based, family-owned medical practice that billed Medicare and Virginia Medicaid more than $600,000 for expensive asthma treatments in did not purchase or improperly administered to patients. In June 2020, AAA pleaded guilty in U.S. District Court in Roanoke to one count of criminal health care fraud.

“When a medical practice fraudulently bills our Medicare and Medicaid programs, it diverts funds from the most vulnerable in our communities and must be held accountable,” said Acting U.S. Attorney Bubar.  “Today’s civil resolution coupled with AAA’s criminal conviction in June marks the end of a lengthy investigation and demonstrates that we will work closely with our federal and state partners to hold providers responsible for healthcare fraud.” 

“Individuals and health care providers who defraud our health care system are not only stealing from Medicare and Medicaid, but they are also stealing from taxpayers and they must be held accountable,” said Attorney General Herring. “I want to thank both our state and federal partners, as well as my hardworking Medicaid Fraud Control Unit, for their dedication and partnership on this case.”

“Every Medicare or Medicaid dollar paid wrongfully is money no longer available for crucially needed health services,” said Maureen R. Dixon, Special Agent in Charge at the Office of Inspector General for the U.S. Department of Health and Human Services.  “Working with our law enforcement partners we will continue protecting these valuable program funds.”

According to court documents, between January 2010 and September 2017, AAA submitted improper billings to Medicare and Medicaid for Xolair, an expensive asthma treatment sold in single-use vials. Due to the nature of the drug, many patients receive doses of the drug that require health care providers to administer a partial vial of the drug. This results in leftover amounts of Xolair that are not administered to the patient. At relevant times, Medicare and Medicaid allowed providers to bill Medicare Part B and Medicaid one time for an entire single vial of Xolair, which includes both the administered quantity, as well as the discarded quantity of the drug from a single-use vial, up to the amount listed on the vial’s label.

In situations where a patient’s dose resulted in a leftover partial vial of Xolair, AAA administered the leftover amount to another patient and the billed Medicare and Medicaid for administering this amount as if it were the entire single-use vial.

From January 2010 to September 2017, AAA billed Medicare $627,540 for Xolair that AAA did not purchase. In addition, AAA received 129 vials of Xolair from Medicaid which is not documented as being used for a Medicaid patient. These 129 vials represent an approximate loss to Medicaid of $88,878.

Under the terms of the civil resolution finalized last week, AAA will pay a total of $2,149,607 to settle claims they violated the false claims act. Broken down, $1,994,607 will be paid to United States government and $154,648 will be paid to the Commonwealth of Virginia.

The investigation of the case was conducted by the Department of Health and Human Services- Office of the Inspector General, Virginia Office of the Attorney General’s Medicaid Fraud Control Unit, and the Federal Bureau of Investigation. Special Assistant United States Attorney and Virginia Assistant Attorney General Nicole S. Terry prosecuted the criminal case for the United States. Assistant United States Attorney Justin Lugar handled the civil matter. 

ABINGDON, Va. – A former employee of the United States Postal Service pleaded guilty last week in United States District Court in Abingdon to stealing mail containing medication that was intended for United States Veterans, Acting United States Attorney Daniel P. Bubar announced.  

Ammie Hale, 45, Raysal, West Virginia, pleaded guilty today, without a plea agreement, to all charges in the indictment against her - three counts of theft of mail by an employee of the postal service for stealing mail on February 26, 2020, July 1, 2020, and August 5, 2020; and one count of making false statements. At sentencing, Hale faces a maximum statutory penalty of up to 20 years in prison. A sentencing hearing has been scheduled for June 2, 2021, at 2:30 p.m.

According to court documents, from September 2019 through July 2020, the United States Postal Inspection Service- Office of the Inspector General (USPIS-OIG) received over 40 reports from the Salem, Virginia Veterans Affairs Medical Center of medication parcels mailed to veterans in the Tazewell, Virginia area that were never delivered.

Agents of the USPS-OIG reviewed available video footage and observed Hale on two different occasions, while working at the Tazwell Post Office, removing parcels from the sorting area, and taking them to an area of the Post Office where employees keep personal belongings and hiding the parcels in her purse. On August 5, 2020, agents conducted on-site surveillance and caught Hale stealing pills from a package addressed from the Veterans Affairs Medical Center. Hale was interviewed on August 5 and falsely told investigators that she had never stolen mail prior to that day.

The investigation of the case was conducted by the United States Postal Inspection Service - Office of the Inspector General. Assistant United States Attorney Randy Ramseyer is prosecuting the case for the United States.  

ABINGDON, Va.- Daniel Shane Carter, a Wise, Virginia man who distributed methamphetamine in Scott County, Virginia, was sentenced today in United States District Court to 10 years in federal prison, Acting United States Attorney Daniel P. Bubar announced.

Carter, 37, pleaded guilty in 2020 to one count of possessing with the intent to distribute 50 grams or more of methamphetamine and one count of possession of a firearm by a previously convicted felon.

According to court documents, Carter trafficked methamphetamine from Kingsport, Tennessee into Scott County, Virginia and possessed a Ruger, 9mm pistol after having previously been convicted of a felony.

The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Scott County Sheriff’s Office, and the Southwest Virginia Drug Task Force. Assistant United States Attorney Lena Busscher prosecuted the case for the United States.   

LYNCHBURG, Va.- A federal grand jury sitting in U.S. District Court in Charlottesville has indicted five individuals for conspiring to distribute and possess with the intent to distribute cocaine and marijuana, Acting United States Attorney Daniel P. Bubar, Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Washington Field Division, Special Agent in Charge Jarod Forget of the Drug Enforcement Administration’s (DEA) Washington Division, Colonel Gary T. Settle, Superintendent of the Virginia State Police, and City of Lynchburg Police Chief Ryan Zuidema announced today.

The grand jury returned a 14-count superseding indictment yesterday charging Jeremel Lawrence Storey, Donnell Lamont Miller, Maggie Lee Smith, Ricky Donnell Abner, and Charay Lamont Trent each with conspiracy to distribute and possess with the intent to distribute cocaine and marijuana. According to allegations in the indictment, Storey was involved in distributing more than five kilograms of cocaine and Miller, Smith, and Abner were involved in distributing more than 500 grams of cocaine.

In addition, Storey, 43, of Charlotte, North Carolina, is charged with one count of possession with the intent to distribute cocaine, one count of distribution of cocaine, and one count of possession of a firearm in furtherance of drug trafficking, specifically a short-barreled rifle. Miller, 41, of Lynchburg, is charged with an additional count of possession with the intent to distribute cocaine

Smith, 27, of Lynchburg, is charged with an additional two counts of possession with the intent to distribute cocaine, and one count of distribution of cocaine. Trent, 41, of Lynchburg, is charged with five additional counts of distribution of cocaine, one count of possession with the intent to distribute cocaine, and one count of possession of a firearm in furtherance of a drug trafficking crime. Abner, 42, of Charlotte, North Carolina, is also charged with one count of possession of a firearm in furtherance of a drug trafficking crime.

According to court documents, beginning around January 2016 and continuing through January 2021, the defendants conspired to distribute and possess with the intent to distribute cocaine and marijuana.

Court documents allege that Storey was the main source of supply for the conspiracy from his residence in Charlotte, North Carolina. Storey regularly traveled from Charlotte to Lynchburg to supply multiple individuals with kilogram quantities of cocaine and collect payment. Storey also directed couriers to perform these trips and invited distributors, such as Trent, Smith, and Miller, to travel to Charlotte, North Carolina, to obtain narcotics. The indictment also includes notice of the forfeiture of several vehicles, approximately $89,000 in United States currency, and 32 items of jewelry, purses, and shoes alleged to be the proceeds of drug trafficking.

The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, the Virginia State Police’s Central Virginia Drug and Gang Task Force, and the City of Lynchburg Police Department. Assistant United States Attorney Sean Welsh is prosecuting the case for the United States.  

An indictment is merely an accusation. The defendants are presumed innocent until proven guilty in a court of law.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.