Western District of Virginia

ABINGDON, VIRGINIA – Two defendants, who were part of a cash selling scheme involving over $10 million dollars in structured transactions which was designed to defraud the Internal Revenue Service, were sentenced today in the United States District Court for the Western District of Virginia in Abingdon.

Calling this “a very serious crime,” United States District Judge James P. Jones sentenced William "Bill" F. Adams, Jr., 55, Yukon, W.Va., and John B. Ward, 43, War, W.Va. to imprisonment for a term of 36 months. He also ordered Adams to forfeit $2.1 million and Ward to forfeit $2.2 million dollars. The defendants operated various coal mines near Caretta, West Virginia, including RS Mining, WA Mining and War Creek Mining. At the conclusion of a three week jury trial in January 2014, both defendants were found guilty of the felony charge of conspiring to defraud the United States in the collection of taxes and structuring cash transactions to avoid reporting requirements. In addition, Ward was found guilty of 24 felony counts of illegally structuring transactions and Adams was convicted of 13 counts of illegally structuring transactions.

Ward and Adams were investigated and prosecuted as part of an investigation titled “Operation 10%.” The name was based on the fact that the people who sell cash to coal operators for purposes of tax evasion typically charge a fee of 10 percent. The scheme typically involved a coal operator’s company writing a check to a cash seller for a certain amount of money – for example, $77,000. The cash seller, disguised as a mine supply business, would then deposit the check in a bank and then make multiple cash withdrawals of $10,000 or less to avoid reporting requirements. Using this example, the cash seller would provide the coal operator $70,000 in cash and keep a fee of 10% - $7,000. The coal operator than pocketed the cash or used it to pay his employees in cash. The coal operator deducted the payment to the cash seller as a business expense and did not report the cash he kept as personal income and did not pay employment taxes on the cash paid to employees.

Operation 10% has resulted in seizures and recovery by the United States of over $8.7 million to be forfeited or applied to evaded taxes. In addition to Ward and Adams, the following twenty-three defendants previously pled guilty to felony charges and received sentences ranging from probation to imprisonment for a term of 24 months:

Name City Age Sandra Marahlee Addair War, W.Va. 46 Timothy Gregory Allen Hurley, Va. 44 Henry Lee Barnett Tazewell, Va. 43 Carl Demas Blevins Tazewell, Va. 55 David Lee Cordill Doran, Va. 64 Billy Ray Dotson Meadowview, Va. 61 Michael Wayne Dunlap Sumerco, W.Va. 58 Darrell Wayne Felts Ballard, W.Va. 60 Elmer Fuller Bristol, Va. 64 Jeffrey Kennis Justus Pounding Mill, Va. 59 Charles Edward "C.E." McReynolds Vallscreek, W.Va. 63 J.D. "Dot" McReynolds Tazewell, Va. 44 Truong “Hoppy” Van Nguyen Tazewell, Va. 78 Hung “Sang” Quoc Nguyen Iaeger, W.Va. 40 Melvin Parsley Williamson, W.Va. 57 Angela Denise Payne War, W.Va. 48 Michael Dwaine Poskas III North Tazewell, Va. 63 David Raber Tazewell, Va. 54 Clinton Lester Ramey Abingdon, Va. 58 Rosie Diane Ritchie War, W.Va. 40 John Duane Tolliver Iaeger, W.Va. 58 Kermit Clayton Wiley Princeton, W.Va. 64 Allen Henry Workman Huddy, Ky. 57

Information obtained as part of Operation 10% also led to several federal convictions in U.S. District Court in Beckley, WV.

Assistant United States Attorney Randy Ramseyer prosecuted the case on behalf of the United States. The case was investigated by the Bristol, Virginia, Office of the Internal Revenue Service – Criminal Investigation. The Charleston, West Virginia, offices of the United States Attorney’s Office and the Internal Revenue Service – Criminal Investigation assisted in the investigation and prosecutions.

ABINGDON, VIRGINIA – Acting United States Attorney Anthony P. Giorno announced today that Glenn Ming Young, 30, of Washington, D.C., was sentenced to 47 months imprisonment in the United States District Court for the Western District of Virginia in Abingdon after having previously been found guilty by a jury of one count of bribery of a public official, one count of conspiracy to bribe a public official. Young also pleaded guilty to possession of contraband.

According to evidence presented at the trial by Assistant United States Attorney Zachary T. Lee and Special Assistant United States Attorney Kevin Jayne, Young was an inmate at the United States Penitentiary Lee County, Virginia, in Jonesville, Virginia, and between August 2013 and November 2013, Young made multiple monetary payments, totaling at least $2,000, to a correctional officer of the United States Bureau of Prisons at the penitentiary in return for the officer smuggling tobacco products and a cellular telephone into the penitentiary. These items were then provided to Young in violation of Bureau of Prisons regulations.

The investigation of this case was conducted by the Federal Bureau of Investigation, United States Bureau of Prisons Special Investigative Service at United States Penitentiary Lee County, and the United States Department of Justice Office of the Inspector General. Assistant United States Attorney Zachary T. Lee and Special Assistant United States Attorney Kevin Jayne prosecuted the case for the United States.

ROANOKE, VIRGINIA – A Roanoke County doctor who was indicted in August on charges of prescribing oxycodone outside the usual course of professional practice and receipt of child pornography, pled guilty today in the United States District Court for the Western District of Virginia in Roanoke.

Steven Joseph Collins, 51, of Roanoke County, Virginia, pled guilty today to one count of receiving child pornography and two counts of dispensing oxycodone by illegal prescribing. At sentencing, Collins faces a period of incarceration between a mandatory five years and twenty years.

According to evidence presented at today’s hearing by Assistant United States Attorney Jennie L.M. Waering, between July 2010 and July 2013, Collins received digital video and image files of a minor who had not obtained 12 years of age, engaged in sexual activity. This sexual activity included prepubescent children engaging in oral sex with adult males.

In addition, Collins admitted that on separate dates in January 2014 and April 2014, in his role as a medical doctor, authorized controlled substance prescription orders for oxycodone to be issued outside the usual course of professional practice. In one instance, he wrote a prescription for oxycodone in the name of the husband of a patient to avoid having too many prescriptions in the patient’s name. The husband was not, and had never been, a patient.

The investigation of the case was conducted by the Tactical Diversion Squad (TDS) of the Drug Enforcement Administration (DEA) and the Department of Homeland Security. The local TDS is comprised of law enforcement officers from the Virginia State Police (VSP), Roanoke County Police Department, Montgomery County Sheriff’s Office, Bedford County Sheriff’s Office, Pittsylvania County Sheriff’s Office, Washington County Sheriff’s Office, Health and Human Services Office of Inspector General and DEA. Assistant United States Attorney Jennie Waering is prosecuting the case for the United States.

ROANOKE, VIRGINIA – A Roanoke woman, who fraudulently used her employer’s DEA Registration Number to illegally prescribe controlled prescription drugs to her son, daughter-in-law, and others, pled guilty this morning in the United States District Court for the Western District of Virginia in Roanoke.

Vicki Chilton Mullen, 63, of Roanoke, Va. and her son, Gregory Daniel Mullen, 39, of Vinton, Va., pled guilty today in District Court. Today in District Court, each defendant pled guilty to one count of distributing hydrocodone (Lortab), one count of distributing Ambien, one count of conspiring to distribute hydrocodone, one count of conspiring to distribute Ambien, one count of using a DEA registration number issued to another person, and one count of acquiring a controlled substance by misrepresentation or fraud. In addition, Gregory Keith Roach, 44, of Hurt, Va., pled guilty last week to one count of obtaining possession of a controlled substance through misrepresentation or fraud and one count of conspiracy to obtain controlled substances by fraud. Chastity Carter Mullen, 39, of Vinton, Va., wife of Gregory Daniel Mullen, also pled guilty last week to one count of conspiracy to distribute controlled substances and to obtain controlled substances by fraud.

“The abuse of prescription drugs is an epidemic in the Western District of Virginia. The illegal use and abuse of these drugs is destroying lives and communities,” Acting United States Attorney Anthony P. Giorno said today. “We will continue to be vigilant in attacking this problem through vigorous enforcement and effective prevention programs.”

According to evidence presented at today’s guilty plea hearing by Assistant United States Attorney Jennie L.M. Waering, Vicki Mullen worked in a Roanoke podiatrist’s office from 2004 to 2012. By virtue of her position she had the access and ability to call in patient prescriptions to pharmacies and advising pharmacies of refill requests. From around December 2007 to August 2012, Vicki Mullen used the podiatrist’s DEA registration number to call in prescriptions and to fax prescriptions for hydrocodone (Lortab), Ambien and others drugs, to pharmacies for Greg Mullen, Chastity Mullen, Gregory Roach, and others. In addition, Gregory Mullen, and others, provided Vicki Mullen with the names and personal identifying information of individuals for the purpose of Vicki Mullen calling in unauthorized prescriptions in those persons’ names, without their knowledge. The unauthorized prescriptions were picked up at various locations by Vicki Mullen, Gregory Mullen, Chastity Mullen, Gregory Roach and others. Vicki Mullen, Greg Mullen and others were addicted to prescription drugs and used some of these prescriptions for personal use. Approximately 45 names were used unknowingly for this drug scheme.

Between 2008 and 2012, 127,686 pills of Lortab (hydrocodone) were dispensed by Vicki Mullen using her using employer’s DEA Registration Number to call-in prescriptions and to fax refill authorizations. During that same time, 5,370 Ambien pills were dispensed in the same manner.

In addition, David Brian Turner was also charged as part of the same conspiracy and is scheduled to plead guilty next week. Walter Bingham has also been charged and could face a March jury trial.

The investigation of the case was conducted by Tactical Diversion Squad of the Drug Enforcement Administration, which includes agents from the Department of Health and Human Services, Office of Inspector General, the Virginia State Police, the DEA Diversion Program, and Task Force law enforcement officers from local jurisdictions that include the Montgomery County Sheriff’s Office, Bedford County Sheriff’s Office, Pittsylvania County Sheriff’s Office, Washington County Sheriff’s Office and Roanoke County Sheriff’s Office. Assistant United States Attorney Jennie L.W. Waering is prosecuting the case for the United States.

ABINGDON, VIRGINIA – A Lee County, Virginia, attorney, who failed to take appropriate action after learning his assistant was stealing money from the accounts of an elderly woman for whom he was appointed conservator of accounts, pled guilty today in the United States District Court for the Western District of Virginia in Abingdon.

Joseph W. Rasnic, age 62, of Jonesville, Virginia, waived his right to be indicted and pled guilty this afternoon to a one count Information charging him with misprision of felony.

“Mr. Rasnic failed to protect the assets of an elderly woman for whom he had been appointed conservator of accounts and instead protected the criminal activity of his assistant,” Acting United States Attorney Anthony P. Giorno said today. “This is certainly a sad day for everyone involved in this case, including Mr. Rasnic and his family. Nevertheless, we will vigorously prosecute attorneys and others who fail to ensure that money entrusted to them is protected.”

According to evidence presented by Assistant United States Attorney Randy Ramseyer, Rasnic operated a law office in Jonesville, Virginia, where Mandie Marie Bishop worked as his secretary and assistant. Rasnic admitted today he became aware Bishop was committing bank fraud by forging signatures to facilitate her theft of money from various bank accounts held by an elderly woman for whom Rasnic had been appointed conservator of accounts. Bishop obtained funds by forging Rasnic’s signature on checks.

Rasnic admitted after becoming aware of Bishop’s thefts he failed to remove her access to the accounts, which allowed her to continue stealing from the victim. In addition, Rasnic withheld information from law enforcement about Bishop’s behavior and actively sought to hide the extent of her criminal activity.

When questioned by agents of the United States Secret Service, Rasnic failed to disclose his knowledge of the full extent of Bishop’s criminal activity and lied about the nature of his personal relationship with Bishop.

In July 2014, Rasnic resigned and was removed as the conservator of the victim’s accounts. Between May 2013 and August 2014, Rasnic paid back $104,990 into the victim’s accounts. As part of the plea agreement, Rasnic was required to pay back all of the money taken by Bishop as well as his guardian and conservator fees and unnecessary expenses caused by the mismanagement of the victim’s accounts. The total amount required to be repaid, including the amount already paid, was $183,726. Rasnic submitted the remaining $78,736 today. Accordingly, the victim will receive full restitution.

Rasnic was released on a $10,000 unsecured bond. At sentencing, scheduled for May 28, 2015, he faces a maximum possible penalty of up to three years in prison and a fine of up to $250,000. Mandie Marie Bishop previously pled guilty to bank fraud charges and, in December 2014, was sentenced to 24 months of federal incarceration. There is no parole in the federal system.

The investigation of the case was conducted by the United States Secret Service. Assistant United States Attorney Randy Ramseyer is prosecuting the case for the United States.

BIG STONE GAP, VIRGINIA – A dentist from Wise, Virginia, who previously pleaded guilty to illegally possessing and distributing more than 10,000 dosages of hydrocodone, was sentenced today in the United States District Court for the Western District of Virginia in Big Stone Gap.

In August 2014, Newton Carroll Mullins, 66, of Wise, Va., waived his right to be indicted and pled guilty to a two-count Information charging him with one count of possession with the intent to distribute and distributing hydrocodone and one count of causing the possession of more than 10,000 dosage units of hydrocodone by fraud. Today in District Court he was sentenced to two months of federal incarceration to be followed by four months on home incarceration.

“The abuse of prescription drugs continues to plague communities in Southwest Virginia and across the country,” Acting United States Attorney Anthony P. Giorno said today. “The problem impacts all levels of society and destroys communities. Long-term abuse of prescription drugs often leads to use of other opioids like heroin. We will continue to aggressively combat the abuse of opioids through vigorous enforcement actions and targeted outreach initiatives.”

Mullins previously admitted that between December 2012 and March 2014 he ordered large amounts of hydrocodone from a drug distributor for use by his dental practice. However, Mullins and his friend used the hydrocodone for their personal use. In addition, Mullins admitted to writing prescriptions for hydrocodone to his employees, who would fill the prescriptions and provide the drugs to Mullins.

The investigation of the case was conducted by the Drug Enforcement Administration’s Tactical Diversion Squad. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.

HARRISONBURG, VIRGINIA – A Winchester, Virginia man who previously pleaded guilty to two charges related to child pornography, was sentenced late yesterday in the United States District Court for the Western District of Virginia in Harrisonburg.

Justin Katz, 22, of Winchester, Va., previously pled guilty to one count of possession of child pornography and one count of distribution of child pornography. Yesterday in District Court, Katz was sentenced to 96 months of federal incarceration.

“The United States Attorney’s Office, along with our federal and state partners, will continue to prioritize cases involving the exploitation of children,” Acting United States Attorney Anthony P. Giorno said today. “Those dedicated to investigating and prosecuting crimes again children will continue to search out those individuals who traffic in this obscene material and bring them to justice.”

“The possession and distribution of child pornography is not a victimless crime,” said Clark E. Settles, special agent in charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C. “Each time a predator like Katz views or shares those images and videos, a child is victimized all over again. Let this sentence be a warning to child predators. We will find you, investigate you and ensure you are prosecuted to the fullest extent of the law.”

According to evidence presented at previous hearings by Assistant United States Attorney Elizabeth G. Wright, on April 10, 2012, an agent with Homeland Security Investigations, working out of San Diego, Calif., was working in an undercover capacity while browsing the Gnutella network, a large peer-to-peer file sharing network often utilized by child pornographers to trade child pornography.

Through the file sharing feature of the network, the undercover agent was able to download two child pornography video files from an IP address associated with the residence of Mr. Katz in Winchester, Virginia. A search warrant of the defendant’s residence was executed in September 2012. A forensic examination of the defendant’s computer revealed 194 images depicting child pornography, which included 172 images depicting pre-pubescent child pornography, and 202 videos depicting child pornography, which included 100 videos depicting pre-pubescent child pornography.

The investigation of the case was conducted by Homeland Security Investigations with assistance from the Computer Forensic Unit of the Virginia Office of the Attorney General. Assistant United States Attorney Elizabeth G. Wright prosecuted the case for the United States.

LYNCHBURG, VIRGINIA – A Staunton, Virginia woman, who worked as a financial advisor for a Staunton-based branch of a national bank chain, pled guilty today in the United States District Court for the Western District of Virginia in Lynchburg to wire fraud charges.

Kirsten Flynn Hawkins, 45, of Staunton, Va., waived her right to be indicted and pled guilty to a three count Information charging her with three separate counts of wire fraud. Hawkins will be sentenced on May 5, 2015 and faces a maximum possible penalty of up to 30 years in prison and/or a fine of up to $1,000,000 for each of the three charges for which she was convicted. In addition, Hawkins’ plea agreement calls for restitution to be made to her victims in an amount of approximately $500,000.

“Through a series of lies and deceitful measures, Ms. Hawkins betrayed the trust of those who gave her control of their finances,” Acting United States Attorney Anthony P. Giorno said today. “I only hope the restitution to be ordered by the court in this matter can restore to the victim the money which was stolen.”

According to evidence presented at today’s guilty plea hearing by Assistant United States Attorney Daniel Bubar, Hawkins worked as a financial advisor for “Bank One.” During that time, between August 2011 and August 2014, the defendant devised a scheme to defraud and obtain money though false representations and promises.

Evidence showed that it was the purpose of the scheme for Hawkins to take control of “Victim One’s” various bank and investment accounts, which were located in “Bank One.” At various times between 2011 and 2014 and on the three separate occasions charged, Hawkins caused money to be transferred from the accounts of Victim One to her personal banking accounts. The funds were used to pay various living expenses, utilities, rent, travel, jewelry, clothing, eating out and to provide other economic benefit for herself and her family.

The investigation of the case was conducted by United States Secret Service. Assistant United States Attorney Daniel Bubar is prosecuting the case for the United States.

ABINGDON, VIRGINIA – Acting United States Attorney Anthony P. Giorno announced today that Scottie Austin was sentenced in the United States District Court for the Western District of Virginia in Abingdon on charges of receiving bribes.

Scottie Austin, 44, of Kingsport, Tenn., who at the time of his offenses worked as a correctional officer at United States Penitentiary Lee County, previously pled guilty to a one count Information charging him with accepting a bribe as a public official. Today in District Court, Austin was sentenced to 12 months and one day of federal incarceration.

“Mr. Austin betrayed the trust placed in him by the Department of Corrections through his illegal and potentially dangerous activity,” Acting United States Attorney Anthony P. Giorno said today. “The investigation and prosecution of this case shows that our office and our investigative partners will pursue justice no matter the position of the individual who breaks federal law.”

According to evidence presented at the guilty plea and sentencing hearings by Assistant United States Attorney Zachary T. Lee, Austin was employed as a correctional officer for the United States Bureau of Prisons at United States Penitentiary Lee County, Virginia, in Jonesville, Va. Between April 2013 and April 2014, Austin received multiple monetary payments, totaling at least $10,000, from family members of an inmate at the penitentiary in return for Austin smuggling tobacco products and cellular telephones into the penitentiary. These items were then provided to the inmate in violation of Bureau of Prisons regulations.

The investigation of this case was conducted by the Federal Bureau of Investigation, United States Bureau of Prisons Special Investigative Service at United States Penitentiary Lee County, and the United States Department of Justice Office of the Inspector General. Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.

ROANOKE, VIRGINIA – A former investment advisor employed by the Roanoke, Va. branch of an unnamed global financial services firm, was sentenced today in the United States District Court for the Western District of Virginia in Roanoke on wire fraud and tax evasion charges.

Donna J. Tucker, 58, of Roanoke, Va., previously waived her right to be indicted and pleaded guilty to a two-count Information charging her with one count of wire fraud and one count of tax evasion. Today in District Court, Tucker was sentenced to 60 months of Federal incarceration. In addition, was ordered to pay $976,485 in restitution to victims.

In evidence presented at today’s sentencing by Assistant United States Attorney Daniel P. Bubar and United States Secret Service Special Agent Andrew Beaman, Tucker stole directly from and caused loss to the accounts of two sets of victims. Evidence showed that all of the victims in this case were elderly and one couple was particularly vulnerable, as they are both legally blind. The Court took these factors into consideration and specifically included the recommended sentencing enhancements regarding the vulnerability of these victims and Tucker’s abuse of a position of trust.

According to information presented at previous hearings, Tucker was an investment advisor in Roanoke from 2007 through April 2013. In August 2010, Tucker forged the signature of one of her clients, an elderly couple who held a joint account, in order to obtain a line of credit, supposedly for the clients, through her firm’s banking arm. Tucker took these actions without the knowledge or consent of the victim.

Approximately one year later, on August 4, 2011, Tucker caused to be transmitted a wire transfer of $295,000 from the victim’s account to her own account at a local credit union. These funds were used to benefit Tucker and her family. In addition, Tucker took steps to ensure the victims did not learn of the unauthorized transfer by instructing others at her firm to place the victims in an all-electronic delivery system that would send the victim’s account statements by email. Tucker also made false statements to the victims, other employees at the firm and created false documents in order to carry out the scheme.

Additionally, in calendar year 2011, Tucker reported to the Internal Revenue Service a taxable income of $125,333. The defendant has admitted to knowingly failing to report additional taxable income of at least $340,000, which resulted in an additional tax of at least $115,000 being owed to the United States.

The investigation of the case was conducted by the United States Secret Service, the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigations and the Roanoke City Police Department. Assistant United States Attorney Daniel P. Bubar and Special Assistant United States Attorney Drew Bradylyons prosecuted the case for the United States.

HARRISONBURG, VIRGINIA – A Florida man, who along with eight other individuals conspired to sell large quantities of crack cocaine in the Winchester, Va. area, was sentenced this morning in the United States District Court for the Western District of Virginia in Harrisonburg.

Ethan Edward Jackson, 26, of Winchester, Va. and Clewiston, Fl., pled guilty in January 2014 to one count of conspiring to distribute and possess with the intent to distribute more than 280 grams of crack cocaine. This morning in District Court, Jackson was sentenced to 120 months’ imprisonment and five years of supervised release.

“These defendants operated a sophisticated illegal business importing dangerous drugs into our community,” United States Attorney Timothy J. Heaphy said today. “We must do all we can to punish those who profit from the addiction of others. We must also pursue education and treatment programs to reduce the demand for illegal drugs. A comprehensive approach is necessary in our continuing struggle to stem the flow of illegal drugs into our communities.”

In all, nine individuals have been convicted of trafficking large amounts of crack cocaine from Florida to the Winchester area for distribution. The crack cocaine brought into Winchester was sold in usually $50-$250 quantities and was sold to both end-users and other distributors. Members of the conspiracy made multiple runs to Florida per month and often operated out of hotels in the Winchester area. They traveled together, stayed in hotel rooms near one another and provided drugs to each other to further the conspiracy. One co-conspirator, Jeremiah Dion McMillan, was also transporting pressed heroin – heroin that had been compressed into pill form to resemble prescription pills – and prescription pills to the area and selling them here. Another co-conspirator, Johnny Lewis Hunter, transported and distributed powder cocaine in addition to crack cocaine from Florida.

Previously sentenced for their roles in the conspiracy are Kareem Lomax Robinson, 204 months; Bobby Clyde Stewart Jr., 180 months; Jeremiah Dion McMillian, 132 months; Johnny Lewis Hunter, 120 months; Lacy Leann Shuck, 120 months; Andrew James Thomas, 120 months; Wendal Anthony Ferguson, 96 months; Susan Ann Ruppenthal, 24 months.

The investigation of the case was conducted by the Northwest Virginia Regional Drug Task Force, which includes the Virginia State Police, and the Drug Enforcement Administration. The Task Force includes law enforcement from the counties of Frederick, Clarke, Shenandoah, Warren and Page as well as the cities and towns of Winchester, Front Royal and Strasburg. Assistant United States Attorney Elizabeth Wright prosecuted the case for the United States.

HARRISONBURG, VIRGINIA – A pair of individuals who ran a Harrisonburg-area restaurant have been indicted by a federal grand jury in the Western District of Virginia in Harrisonburg on charges related to the inducing and harboring of aliens.

Maria Rosalba Alvarado McTague, [Alvarado], 47, and Felix Adriano Chujoy, 26, both of Harrisonburg, Va., were indicted by a federal grand jury on December 4, 2014. That indictment was unsealed Friday evening following the defendants’ arrests and initial court appearances.

Alvarado and Chujoy have each been charged with one count of conspiracy to violate immigration statutes, two counts of harboring an alien, and two counts of inducing an alien for financial gain. In addition, Alvarado has been charged with one count of visa fraud.

According to the indictment, Alvarado and Chujoy, who are originally from Peru but have since become Naturalized United States Citizens, managed Inca’s Secret, a restaurant in Harrisonburg. Alvarado is accused of making regular trips to Peru, where she attempted to recruit victims to immigrate illegally to the United States for the purpose of working at Inca’s Secret.

The defendants promised to help smuggle the victims into the United States, told victims they would be paid for working at the restaurant and that they would be provided a place to live. In exchange, the victims had to work for Alvarado and Chujoy at Inca’s Secret for six months to work off the “debt” owed for smuggling and housing the victims.

However, once arriving in the United States, the indictment alleges, victims were forced to work 12-hours per day, seven days per week and provide services outside of their work at the restaurant. The victims were paid approximately $450 per month, effectively resulting in an hourly wage of less than $1.50 per hour. Alvarado and Chujoy housed the victims at their home and, according to the indictment, the victims did not feel free to leave.  Other documents unsealed at the initial appearance reflect that Alvarado and Chujoy controlled the victims through isolation, threats, and harassment.

 In addition, the indictment alleges that when one victim in Peru refused to cross into the United States illegally, Alvarado arranged to have a VISA application submitted to the U.S. Embassy in Peru on behalf of the victim which contained a variety of false and fraudulent information.

The victims were identified by a Good Samaritan who called the National Human Trafficking hotline who passed the tip onto law enforcement.  The National Human Trafficking hotline can be reached at 1-888-373-7888.

The Indictment includes six counts.  If convicted, the defendants could face ten years in prison and/or a fine of up to $250,000 for each charge.

The investigation of the case was conducted by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Federal Bureau of Investigation and the Commonwealth of Virginia Attorney General’s Office.  Assistant United States Attorney Heather Carlton is prosecuting the case for the United States.

A Grand Jury Indictment is only a charge and not evidence of guilt.  The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.

ABINGDON, VIRGINIA – Mandie Marie Bishop, 34, of Big Stone Gap, Va., was sentenced today in the United States District Court for the Western District of Virginia in Abingdon to 24 months in federal prison for defrauding an elderly woman of $183,726.83.

United States District Judge James P. Jones imposed sentence based on Bishop’s September 25, 2014, guilty plea to two counts of bank fraud and one count of making false statements in a matter within the jurisdiction of the executive branch of the United States.

According to evidence presented at previous hearings, Bishop worked as a legal assistant in a law office located in Lee County, Virginia.  Bishop’s employer, an attorney in Lee County, Virginia, became conservator of an elderly woman’s assets in late December 2011.  Bishop’s employer allowed Bishop to access the elderly woman’s bank accounts at Farmers and Miners Bank and Lee Bank and Trust Company, but Bishop did not have signature authority on the accounts.  As early as January 17, 2012, Bishop began fraudulently issuing and cashing checks from the elderly woman’s accounts.  Between January 17, 2012, and May 16, 2013, Bishop caused $106,672.37 to be fraudulently obtained from the elderly woman’s bank account at Lee Bank and Trust Company.  Between June 29, 2012 and May 16, 2013, Bishop caused at least $11,382.90 to be fraudulently obtained from the checking account at Farmers and Miners Bank.  On May 16, 2013, after Farmers and Miners Bank made her employer aware of the fraudulent activity at the bank, her employer deposited $10,558.25 into the account to replace a portion of the missing funds.

Bishop continued in her role as a secretary and assistant with the same employer and between May 17, 2013, and December 10, 2013, caused at least an additional $53,002.82 to fraudulently be obtained from the elderly woman’s checking account.  In addition, the victim incurred $12,668.74 in unnecessary expenses.   The Court ordered Bishop to make restitution for the total amount of loss incurred by the victim -- $183,726.83.  To date, Bishop’s employer has repaid $104,990.15.

The investigation of the case was conducted by the United States Secret Service.  Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.

ABINGDON, VIRGINIA – A Crooksville, Ohio man, who threatened to shoot officers of the Lee County, Virginia Sherriff’s Office, was sentenced yesterday in the United States District Court for the Western District of Virginia in Abingdon.

Jeffrey Allen Hinkle, Jr., 31, of Crooksville, Ohio, previously pled guilty to one count of transmitting in interstate commerce a threat to injure another person. At his plea hearing, Hinkle admitted that on May 21, 2014, he called the Lee County, Virginia Sherriff’s Office and threated to “pull-up beside every cruiser . . .with [a] county deputy and shoot the officer in his face” if the Sheriff’s Office did not intervene in a civil dispute Hinkle’s relatives were having with a neighbor in Lee County, Virginia. Yesterday in District Court, Hinkle was sentenced to 30 months of federal incarceration.

“United States Attorney Timothy J. Heaphy praised the swift action of the Federal Bureau of Investigation and United States Marshal’s Service in responding to the threat and ensuring that Mr. Hinkle was promptly taken into custody, stating “Those who threaten law enforcement officers will always be vigorously prosecuted by our office.”

The investigation of the case was led by the Federal Bureau of Investigation with the assistance of the Lee County, Virginia Sheriff’s Office. The United States Marshals Service led the execution of the arrest warrant in Ohio. Special Assistant United States Attorney Kevin L. Jayne prosecuted the case for the United States.

CHARLOTTESVILLE, VIRGINIA – The first three of nine defendants charged with federal drug distribution conspiracy charges pled guilty today in the United States District Court for the Western District of Virginia in Charlottesville.

James Alexander Clore, 23, of Culpeper, Va., Renee Harris, 43, of Charlottesville, Va. and Marcus Lee Strother, 23, of Culpeper, Va., were indicted in August 2014, along with six other individuals, on charges related to a conspiracy to distribute cocaine and heroin.

“Mr. Clore, an armed drug dealer, along with Ms. Harris and Mr. Strother, imported and sold large amounts of crack cocaine and heroin, endangering the health and safety of our community,” United States Attorney Timothy J. Heaphy said today. “Because of the effective work of a multi-agency team of investigators, their illegal business has been dismantled and our safety enhanced.”

Today in District court, Clore pled guilty to one count of conspiring to distribute and possess with the intent to distribute 280 grams or more of crack cocaine, one count of conspiring to distribute and possess with the intent to distribute heroin and one count of possessing and using firearm in furtherance of a drug trafficking crime.

Also today in District Court, Strother pled guilty to one count of conspiring to distribute and possess with the intent to distribute crack cocaine, one count of conspiring to distribute and possess with the intent to distribute heroin. Harris pled guilty to a lesser offense of conspiring to distribute and possess with the intent to distribute crack cocaine.

According to a statement of facts proffered today in court by the United States, during the summer of 2013, several individuals living in the Culpeper area organized and established themselves along with individuals from Charlottesville for the purpose of selling crack cocaine, heroin and firearms. The group came to the attention of law enforcement in late 2013 and was known informally as “Culpeper & Associates.” Clore has been identified by law enforcement as the “second in charge” and “right hand man” in Culpeper and Associates.

In December 2013, law enforcement believes a rival group, known informally as “South First Street,” stole a gun from a vehicle owned by a member of Culpeper and Associates. The suspected robbery set off a series of four different shootings between the two groups during the months of December 2013, February 2014, April 2014 and May 2014. Due to the threat to public safety, the Jefferson Area Drug Enforcement Task Force (JADE), the Federal Bureau of Investigation and the Drug Enforcement Administration immediately began an investigation into the activities of each group.

The investigation established that beginning in January 1, 2013, members of Culpeper and Associates were involved in the trafficking of narcotics and firearms, multiple shootings and the establishment and maintenance of a drug involved premises at 366 Riverside Avenue, an apartment within the City of Charlottesville and within 1,000 feet of Riverview Park.

At sentencing, Clore faces a maximum possible penalty of up to life in prison and/or a fine of up to $10 million on the cocaine conspiracy charge and a maximum possible penalty of up to 20 years in prison and/or a fine of up to $1 million on the heroin conspiracy charge. Clore also faces a mandatory five years in prison on the gun charge. Harris and Strother each face up to 20 years in prison and/or a fine of up to $1 million on the cocaine conspiracy charge. Strother also faces up to 20 years in prison and/or a fine of up to $1 million on the heroin conspiracy charge.

The investigation of the case was conducted by the Jefferson Area Drug Enforcement Task Force, the Charlottesville Police Department, the Albemarle County Police Department, the Federal Bureau of Investigation, the Drug Enforcement Administration, the Culpeper Police Department and the Commonwealths Attorney’s Offices for the City of Charlottesville and the County of Albemarle. Special Assistant United States Attorneys Joseph Platania and Assistant United States Attorney Ronald Huber, with the assistance of third-year University of Virginia Law student Sarah Brigham, are prosecuting the case for the United States.

HARRISONBURG, VIRGINIA – The final four members of a heroin distribution ring that brought hundreds of grams of heroin per week into the Winchester area, pled guilty late last week in the United States District Court for the Western District of Virginia in Harrisonburg to federal drug conspiracy charges. In all, the conspiracy brought multiple kilograms of heroin into the area during the life of the conspiracy.

In all, thirteen individuals have been convicted of drug distribution conspiracy and an additional defendant from New York has been arrested and charged via federal criminal complaint.

“Mr. Jones and his co-conspirators supervised a significant illegal business that imported heroin from New York and distributed it across Virginia,” United States Attorney Timothy J. Heaphy said today.  “We will continue to do all we can to identify patterns of heroin trafficking and dismantle the criminal conspiracies that bring this poison into our communities.  We must also do all we can to enhance prevention efforts and provide treatment services to those struggling with addiction.  A comprehensive approach is essential if we are going to stem the tide of heroin abuse in our communities.”

“This is another excellent example of Inter-Agency cooperation in eradicating a violent and dangerous drug gang. I commend the courage and dedication of all the agents and officers, whether they be ATF, State or Local, who worked so diligently on this investigation to bring it to its successful conclusion” said Charles E. Smith, Special Agent in Charge of the Washington Field Division. “It is part and parcel of ATF’s “Frontline Initiative” which concerns the investigating and targeting of the most violent and destructive elements of society today.”

As of last week, thirteen defendants have pled guilty to drug distribution conspiracy charges. Those defendants who have pled guilty are as follows:

• Ronny Maurice Jones, 37, of Woodstock, Virginia
• Kareem Allen Shaw, 39, of Oxon Hill, Maryland
• Columbus Butler, 59, of Edinburg, Virginia
• Charles William Smith Jr., 47, of Edinburg, Virginia
• Joshua Adam Pettyjohn, 29, of Woodstock, Virginia
• Logan Montgomery Rose, 26, of Woodstock, Virginia
• Arthur Marquinton Ronnelle Kinnard, 29, of Winchester, Virginia
• Ashton Grace Kern, 23, of Strasburg, Virginia
• Francis D. Alvarez, 38, of Woodstock, Virginia
• Arthur Sean Bailey, 36, of Sterling, Virginia
• Kimberle Ann Hodsden, 31, of Stafford, Virginia
• Keith Thomas Marshall,  39, of Reston, Virginia
• Ryan Kenneth McQuinn, 28, of Stafford, Virginia

In addition, Matthew Santiago, of New York, has been arrested and charged via a federal indictment with heroin distribution conspiracy charges.

According to evidence presented at various hearings by Assistant United States Attorney Donald Wolthuis, Jones and Shaw were major heroin cocaine distributors in the western and eastern districts of Virginia. Jones supplied heroin to sub-distributors for locations in the Western District of Virginia (Rockingham County, Frederick County, Shenandoah County, Page County, Warren County) while Shaw controlled the flow of heroin to locations in the Eastern District of Virginia (Prince William County, Stafford County).

The United States has put forth evidence that Jones was bringing approximately 80-150 grams of heroin into the Western District of Virginia each week. Shaw, operating in the Eastern District of Virginia, was bringing in hundreds grams of heroin each week. In addition to charges again Jones, Shaw and their local sub-distributors, the United States Attorney’s Office for the Western District of Virginia has also arrested and charged, via a federal indictment, Matthew Santiago, the man charged as the source of heroin for both Jones and Shaw.

In addition, several firearms were recovered as part of the investigation, including one stolen pistol from Shenandoah County.

The investigation of this case was conducted by the Martinsburg Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Washington Field Division, the Virginia State Police’s Northwest Virginia Regional Drug Task Force and RUSH Drug Task Force and the Stafford County Special Investigation Unit. Assistant United States Attorney Donald Wolthuis is prosecuting the case for the United States.

ROANOKE, VIRGINIA – Timothy J. Heaphy announced today that he will step down as the United States Attorney for the Western District of Virginia at the end of 2014, after serving more than five years in office. Mr. Heaphy has informed President Obama and Attorney General Eric Holder of his decision.  After leaving office, Mr. Heaphy will become Chair of the White Collar Defense and Government Investigations practice at an international law firm based in Richmond, VA.  First Assistant United States Attorney Anthony Giorno will become Acting United States Attorney on January 1, 2015.

“Serving as United States Attorney for the Western District of Virginia has been the greatest honor and privilege of my career,” United States Attorney Heaphy said today.  “I am grateful for the trust placed in me by President Obama and appreciate the opportunity I have had to work with Attorney General Holder and the other dedicated professionals across the Department of Justice.  I leave inspired by the ongoing commitment to justice displayed every day by the lawyers and staff in the Western District, who work hard to protect the safety of communities across the Commonwealth.  I am proud of their success and confident that it will continue.”

“Over the past five years, Tim Heaphy has been an outstanding United States Attorney for the Western District of Virginia and a key national leader on a host of pressing criminal justice issues,” United States Attorney General Eric Holder said today. “Throughout his distinguished career -- from our days together in the U.S. Attorney’s Office for the District of Columbia, to his current post -- I have known Tim as a dedicated public servant and a champion of the cause of justice. He has been a fierce advocate for groundbreaking community outreach initiatives within and far beyond his district. And he has worked tirelessly to promote data-driven prevention, intervention, and reentry programs to improve public safety at the national level. As a talented attorney, a dedicated prosecutor, and a leader of both patriotism and principle, Tim Heaphy has been an indispensable member of the U.S. Department of Justice. From the prosecutions he has led to the policies he has championed, Tim's work has touched countless lives across Virginia and throughout the nation. I have been proud to count him as a friend. On behalf of our colleagues and the American people, I thank him for his service and wish him all the best in every future endeavor.”

On October 13, 2009, Mr. Heaphy, a graduate of the University of Virginia and the University Of Virginia School Of Law, was unanimously confirmed by the United States Senate as the United States Attorney for the Western District of Virginia.   He was sworn in by then Chief United States District Judge James Jones in Abingdon, VA on October 16, 2009, and has served continuously since that date.  Attorney General Holder attended his ceremonial Investiture as United States Attorney on December 4, 2009, in Charlottesville, VA.

During his tenure as United States Attorney, Mr. Heaphy served for 2 years on Attorney General Holder’s Advisory Committee (“AGAC”), a group that advises the Attorney General on emerging policy issues.  Mr. Heaphy has also served as Chairman of the AGAC’s Subcommittee on Law Enforcement Coordination, Victims Issues, and Community Outreach, and he has been a member of the Subcommittees on Criminal Practice, Violent and Organized Crime, and Civil Rights.  Through his work with the AGAC, Mr. Heaphy helped conceive and implement Attorney General Holder’s anti-violence strategy and, most recently, the Department’s “Smart on Crime” initiative.   Mr. Heaphy testified three times before the Congressional committees on issues ranging from guns to synthetic drugs to sentencing reform. 

“My time on AGAC gave me a unique opportunity to contribute to the discussion of important policy issues faced by Attorney General Holder and the Department of Justice,” United States Attorney Heaphy observed.  “I was privileged to have a voice in the creation of the Smart on Crime initiative, and I have been pleased to subsequently work to implement the components of that strategy in our District.  I believe these and other initiatives on which the AGAC has worked have made the Department more effective, and that these reforms will last well beyond my time as United States Attorney.” 

Under Mr. Heaphy’s leadership, the Western District of Virginia has achieved notable success in numerous criminal cases and complex civil matters.  The office has protected national security, defended the civil rights of all Virginians, held corrupt public officials accountable, and prosecuted financial fraud in various forms.  AUSAs have aggressively pursued crimes of violence, taken gang members and other violent criminals off our streets, and protected children from exploitation.  During his tenure, the office has vigorously pursued health care and other program fraud and obtained civil settlements which recovered millions of dollars for crime victims.  The rich diversity of the Western District presents a range of public safety challenges, which has required flexibility and judgment in the deployment of enforcement resources.

While serving as United States Attorney, Mr. Heaphy personally investigated and tried numerous criminal cases.  He reopened a cold case homicide in Orange, Virginia, and convicted the charged defendant at trial.  He identified a long-running pattern of fraud committed by a financial advisor against a celebrity client, then negotiated a guilty plea which resulted in a jail sentence and restitution obligation of over $1 million.  He supervised the investigation of a lucrative online business in which the defendants manufactured high-quality false identification documents, which also resulted in lengthy jail sentences and forfeiture of millions of dollars.  Most recently, he has led the investigation of the murder of a Waynesboro, VA reserve police officer, which has led to the pending indictment of 9 members of a regional set of the Bloods gang responsible for that murder and numerous other violent crimes.

In addition to his supervision of the office’s varied and important litigation, Mr. Heaphy was also responsible for integrating community outreach and crime prevention initiatives into the daily work of this United States Attorney’s Office.  He worked to augment the office’s core enforcement work with support for viable prevention programs.  Under his leadership, the office helped establish and grow reentry and treatment courts and prevention programs for youth.  He has also convened several statewide summits and helped increase awareness of emerging criminal justice challenges.  His comprehensive vision of community safety has guided the work of AUSAs and staff and will endure long past his departure.

“To achieve true community safety, we must do much more than arrest and incarcerate,” United States Attorney Heaphy said today.  “To be effective, we must supplement our core enforcement work with support for prevention and reentry programs.  True community safety is a “three-legged stool,” which must be built upon targeted enforcement, effective prevention, and viable reentry, all working contemporaneously.”

HARRISONBURG, VIRGINIA – A 65-year-old Winchester man who was previously accused of exploiting two young girls, pled guilty yesterday in the United States District Court for the Western District of Virginia in Charlottesville.

Phillip Daniel Rush, 65, of Winchester, Va., pled guilty yesterday to one count of production of child pornography. At his sentencing hearing on March 4, 2014, the defendant faces a possible penalty of between 15-30 years in federal prison.

“Mr. Rush’s despicable act of abusing eight and seven year old girls has justly landed him in federal prison,” United States Attorney Timothy J. Heaphy said today. “When pornographers like Rush exploit children, they will be held accountable.”

According to a factual summary filed during yesterday’s guilty plea hearing, around July 2012, Rush exploited a seven-year-old girl and an eight-year-old girl while they were visiting him. The defendant filmed the two girls engaging in sexually explicit conduct.

Specifically, Rush turned on the webcam of his computer and provided a sexual device to one of the girls. He also later provided a jar of Vaseline. The defendant can be seen during various portions of the hour-long film. An adult pornography movie can be heard playing in the background.

The Winchester Police Department began the investigation into Rush after the mother of an older child notified police that her child had viewed the video of the two minor girls Rush’s computer.

The investigation of the case was conducted by the Winchester Police Department, the United States Secret Service and the Frederick County Sheriff’s Office. Assistant United States Attorneys Nancy S. Healey and Heather Carlton are prosecuting the case for the United States.

ROANOKE, VIRGINIA – U.S. Attorney Timothy J. Heaphy announced today that the Western District of Virginia collected $4,261,639 in criminal and civil actions in Fiscal Year 2014. Of this amount, $3,289,598 was collected in criminal actions and $972,041 was collected in civil actions.

Additionally, the Western District of Virginia worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $1,823,978 in cases pursued jointly with these offices, all of this money was collected in civil actions.

Additionally, the U.S. Attorney’s Office for the Western District of Virginia, working with partner agencies and divisions, collected $30,689,223 in asset forfeiture actions in FY 2014. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.

Attorney General Eric Holder announced on November 19, 2014 that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending September 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budgets for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.

“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”

“The lawyers and staff in the Western District of Virginia have established a long, successful track record of recovering funds for restitution and forfeiting assets obtained or used by criminals,” United States Attorney Timothy J. Heaphy said today. “We may be a small District, but our slingshot is lethal. We will continue to do all we can to deprive criminals of their ill-gotten gains and recover assets for crime victims.”

The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.

The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.

ROANOKE, VIRGINIA – Three individuals who were previously convicted of robbing Carter Bank and Trust in Ararat, Virginia, were sentenced this afternoon in the United States District Court for the Western District of Virginia in Roanoke.

Devin Montae Robinson, 23, of Kernersville, North Carolina, Jamel Clifton Allen, 37, of Holly Hill, South Carolina and Whitney Nicole Ceasar, 20, of Mount Airy, North Carolina, were previously convicted of charges related to the August 2, 2013 armed robbery of the Carter Bank and Trust on Ararat Highway in Ararat, Va. Specifically, Robinson and Allen pleaded guilty to armed bank robbery and use of a firearm in relation to a crime of violence and Ceasar pleaded guilty to bank robbery. Today in District Court, Robinson was sentenced to 120 months of federal incarceration. Allen was sentenced to 240 months of federal incarceration, and Ceasar was sentenced to 30 months of federal incarceration.

“These three defendants were just punished today for their brazen and dangerous bank robbery,” United States Attorney Timothy J. Heaphy said today. “We will continue to prioritize violent crimes involving firearms, as these acts have the potential for extreme danger to victims.”

According to evidence presented at previous hearings by Assistant United States Attorney Daniel Bubar, on August 2, 2013, Allen and Robinson drove to Carter Bank and Trust in Ararat, armed with handguns, for the purpose of robbing the bank. Just after 9:30 a.m. on August 2, 2013, Robinson, while wearing a mask and carrying a firearm, entered Carter Bank and Trust, threatened an employee, brandished the firearm, and through intimidation did steal $7,370.

While Robinson was robbing the bank, Allen was waiting for him in a car outside the bank. When Robinson exited the bank, Allen drove the two of them away from the bank. While Allen and Robinson fled the bank after the robbery, bystanders who had observed the robbery followed Allen and Robinson in their own car and took pictures of the robbers’ car and recorded the license plate number. Robinson fired at least two shots from his handgun back toward the eyewitnesses’ vehicle to scare them off. The bystanders stopped following and called 911.

Robinson and Allen then met Cesar, Robinson’s girlfriend at the time, at a pre-determined location and entered a second getaway vehicle that Cesar drove to further assist Robinson and Allen in fleeing the bank robbery. Ceasar drove Robinson and Allen to another location in North Carolina. Through details given by various eyewitnesses, law enforcement officials were able to locate the vehicles used in the robbery and eventually located the suspects.

The investigation of the case was conducted by the Federal Bureau of Investigation, the Patrick County Sheriff’s Office, the Winston-Salem Police Department, the Virginia State Police and the Surry County Sheriff’s Office. Assistant United States Attorney Daniel Bubar and Special Assistant Steven Bans prosecuted the case for the United States.

LYNCHBURG, VIRGINIA – The former majority owner of construction company Genesis Mansions, who recruited a number of strawbuyers to defraud financial institutions of millions of dollars thorough an intricate mortgage fraud conspiracy, pled guilty today in the United States District Court for the Western District of Virginia in Lynchburg.

Susanne Helbig, 50, previously a resident of Roanoke, Va., was indicted in May 2014 on a series of federal charges related to a mortgage fraud scheme.  This afternoon in U.S. District Court, Helbig pled guilty to one count of mortgage fraud conspiracy and one count of tax fraud. As part of the plea agreement entered into between the United States and the defendant, Helbig will face a period of incarceration between 51 and 121 months. In addition, the plea agreement calls for Helbig to pay $10,620,121 in restitution to the financial institutions that were defrauded and $179,593 to the Internal Revenue Service.

“Ms. Helbig and others executed a sophisticated scheme to defraud numerous financial institutions,” United States Attorney Timothy J. Heaphy said today. “Her repeated acts of recruiting straw buyers and submitting false statements to banks and other lenders allowed her to steal almost $11 million from her victims.  This case demonstrates our commitment to identify and prosecute those who commit mortgage fraud, a serious crime with wide-ranging impact on the housing market.”

“Ms. Helbig’s conviction sends a powerful message to those who seek illegal profits by exploiting our nation’s mortgage industry,” said Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Division. “The FBI’s commitment to identifying mortgage fraud and working with our prosecutorial, law enforcement, and industry partners to mitigate the threat is evidenced by cases like this one.  We will use every investigative technique available to us to ensure the integrity of our critical commercial institutions such as mortgage lending.”

“Ms. Helbig let greed get the better of her and in doing so she victimized the financial institutions that lent her money and the honest American taxpayers that have to pay more because of her cheating,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington, D.C. Field Office. “The impact of the actions of Ms. Helbig and her co-conspirators are wide ranging and negatively affect all of us. Ms. Helbig’s guilty plea today is an opportunity for her to admit to the deception and face the consequences of her actions.”

"In addition to stealing from the lenders, criminal schemes, such as Ms. Helbig's,  victimize legitimate borrowers by making it more difficult for them to obtain mortgages. This investigation is another shining example of the great partnership that exists between local, state, and federal law enforcement agencies across the country in detecting and investigating mortgage fraud," said Dugan Wong, Inspector in Charge of the Pittsburgh Division of the Postal Inspection Service. "

Helbig admitted today that between March 2006 and December 2007 she, and others, conspired to defraud financial institutions through the submission of false and fraudulent mortgage loan applications and settlement statements in the name of strawbuyers. Helbig, and others, took these actions to induce financial institutions to finance the purchase and construction of approximately 30 properties near Smith Mountain Lake. The fraudulent actions of Helbig, and others, caused nearly $11 million in losses.

According to evidence presented at today’s guilty plea hearing by Assistant United States Attorney Laura Day Rottenborn, Helbig was the leader of a conspiracy who, along with her co-conspirators, recruited strawbuyers to pose as purchasers for properties Helbig owned near Smith Mountain Lake. Helbig paid the strawbuyers between $5,000 and $20,000 to pretend that they had purchased property from Helbig and needed a loan to build a primary residence on the land. In reality, however, the strawbuyers had no intention of owning or living in the house and instead Helbig took the loan disbursements for herself.  She used some of the money to build homes on the land, which she intended to flip and sell for substantial profit but never did.  She also used the loan money to pay herself a substantial income; gave some of the money to her co-conspirators to incentivize their participation in the scheme; and took money from one loan institution to pay off debts she owed to other financial institutions.

            To induce lenders to make the loans, Helbig and her co-conspirators helped the strawbuyers falsify their loan applications.  The loan applications stated an artificially inflated value for the land, inflated the strawbuyer’s income and assets, misrepresented the strawbuyer’s employment, misrepresented that the property would be the strawbuyer’s primary residence, and misrepresented the true source of  funds provided to the strawbuyer for closing.   Helbig personally gave strawbuyers substantial sums of money to help them qualify for loans that they could not otherwise afford, as well as kickbacks to the strawbuyers for their services– without disclosing either such gifts to the lenders.  In many instances, Helbig then took back the “gifts” used to inflate the strawbuyer’s assets as soon as the loan closed.  Helbig further signed settlement statements and loan applications even though she knew they contained materially false information designed to trick the banks into making substantial loans.  She then filed false tax returns claiming improper deductions, resulting in a grossly underestimated tax liability.

            Throughout the life of the conspiracy, about a half dozen lending institutions unknowingly made over $17 million in loans to Helbig based on the false and fraudulent statements in the loan application packets. Helbig ran a Ponzi scheme, making the loan payments on properties using the loan proceeds from other loans.  Meanwhile, Helbig had not completed the construction of virtually any homes.  When Helbig could no longer obtain additional financing, due in part to her supply of strawbuyers drying up and the tightening of the extension of credit in connection with the mortgage crisis of 2008, she stopped making payments on the loans, causing the properties to go into foreclosure and causing the lenders substantial loss.   The strawbuyers were also put into financial ruin when the defaults and foreclosures were reported negatively on their accounts with the credit bureaus.

The investigation of the case was conducted by the Internal Revenue Service-Criminal Investigations, the Federal Bureau of Investigation and the United States Postal Inspection Service.  Assistant United States Attorneys Laura Day Rottenborn and Heather Carlton are prosecuting the case for the United States.

HARRISONBURG, VIRGINIA – A Winchester man, who distributed heroin to two local residents who later died of heroin overdoses, was sentenced this week in the United States District Court for the Western District of Virginia in Harrisonburg.

Tyler Christian Clements, 25, of Winchester, Va., previously pled guilty to two counts that stemmed from the distribution of heroin resulting in serious bodily injury and death. The two heroin overdose deaths took place on August 16, 2013 and September 23, 2013. Today in District Court, Clements was sentenced to 264 months of federal incarceration.

“The epidemic of heroin abuse has infected many communities in the Western District of Virginia,” United States Attorney Timothy J. Heaphy said today. “We will continue to react to the scourge of heroin in our communities by apprehending and incarcerating those who bring this poison into our communities. At the same time, we must continue to support education, prevention and treatment programs. Only a comprehensive approach which couples targeted enforcement with aggressive prevention will be effective.”

“This investigation was about the tragic deaths of two people whose lives were ended far too soon. Today, Mr. Clements will begin to pay the price for his actions. He will no longer be able to sell this poison to members of this community,” said Drug Enforcement Administration Special Agent in Charge Karl C. Colder. “The sentencing of Mr. Clements is the result of the hard work and dedication of DEA and its state and local law enforcement counterparts. Our message is simple: DEA will relentlessly pursue those individuals that cause these senseless deaths. We will continue to work closely with our partners in targeting and dismantling heroin trafficking networks operating in Frederick County.”

Clements previously admitted to traveling to Baltimore and purchasing heroin. He returned to the Winchester area and sold the heroin he purchased in Baltimore to individuals who later used the drug provided by Clements and died as a result of heroin overdoses. Local and federal law enforcement worked with their counterparts in Baltimore and identified his source of the heroin.

On August 16, 2013, Clements sold heroin that he had purchased in Baltimore to Derek Lee Spouse. Mr. Spouse used the heroin and died as a result of a heroin overdose. The medical examiner concluded that the cause of Mr. Spouse’s death was “adverse effect of ethanol and heroin.” The medical examiner also determined that, in his opinion, “without the heroin, Mr. Spouse would not have died.”

Less than two months later, on September 24, 2013, Clements again went to Baltimore and purchased heroin. He returned to Winchester where he distributed it to an unnamed victim who used the drugs provided by Clements and later died of a heroin overdose. In this case, after the victim overdosed, Clements removed from the scene and disposed of evidence, including needles and other drug paraphernalia, before emergency personnel and law enforcement had arrived. The medical examiner determined that the victim died as a result of “acute heroin poisoning.”

The investigation of this case was conducted by the Northwest Virginia Regional Drug Task Force, which includes the Virginia State Police, and the Drug Enforcement Administration. The Task Force includes law enforcement from the counties of Frederick, Clarke, Shenandoah, Warren and Page as well as the cities and towns of Winchester, Front Royal and Strasburg.

BIG STONE GAP, VIRGINIA – United States Attorney Timothy J. Heaphy announced today that a Big Stone Gap jury returned a verdict of guilty on multiple counts related to controlled substance analogues in a trial that concluded on October 22, 2014.

Following a six-day jury trial, Cecil A. McConnell, Jr., 68, of Pound, Va., was convicted of one count of conspiracy to distribute controlled substance analogues, one count of distribution of controlled substance analogues, one count of maintaining a place for the purpose of distributing controlled substance analogues, misbranding of a drug with the intent defraud, and one count of possession with the intent to distribute a controlled substance analogue.

“These defendants operated a lucrative illegal business selling dangerous synthetic drugs,” United States Attorney Timothy J. Heaphy said today. “These substances are extremely dangerous and can lead to harmful consequences for users. Those of us who work in law enforcement will continue to remove this harmful material from our communities. We must also ensure that the people of Southwest Virginia understand that these synthetic drugs are unsafe and illegal.”

Douglas Eugene Stephens, 63, of Pound, Va., was convicted of one count of conspiracy to distribute controlled substance analogues, one count of maintaining a place for the purpose of distributing controlled substance analogues, misbranding of a drug with the intent defraud, and one count of offering for sale drug paraphernalia.

Six other defendants had previously pleaded guilty to charges related to the scheme to distribute synthetic cannabinoids in Florida and Southwest Virginia. Those defendants are:

Emmanual Vestal, 43, of Interlachen, Fla., previously pleaded guilty to one count of misbranding a drug with the intent to defraud and one count of conspiracy to misbrand a drug with the intent to defraud.

Victoria Hoyt, 41, of Interlachen, Fla., previously pleaded guilty to one count of misbranding a drug with the intent to defraud and one count of conspiracy to misbrand a drug with the intent to defraud.

Vicki Curry, 33, Gainesville, Fla., previously pleaded guilty to one count of misbranding a drug with the intent to defraud.

Cynthia Johns, 53, Hollister, Fla., previously pleaded guilty to one count of conspiracy to distribute controlled substance analogues.

James Pirtle, 72, Coeburn, Va., previously pleaded guilty to one count of misbranding a drug with the intent to defraud and one count of conspiracy to misbrand a drug with the intent to defraud.

Linda Pirtle, 66, Coeburn, Va., previously pleaded guilty to one count of conspiracy to distribute a controlled substance analogue.

According to evidence presented at the jury trial by Assistant United States Attorney, Zachary Lee, Cecil A. McConnell, Jr., assisted in the operation of Cecil’s Variety, a store located in Pound, Virginia. Douglas Eugene Stephens operated Get It Here, also a store in Pound, Virginia. Both distributed illegal synthetic cannabinoid products, namely, XLR-11, UR144, PB-22, and 5F-PB-22, marketing their products as legal “potpourri” or “incense” in order to attempt to evade federal and state law. The products sold by Stephens and McConnell were obtained from Emmanuel Vestal and Victoria Hoyt who operated stores named Smokeez in both Gainesville, Florida and Coeburn, Virginia.

The jury heard evidence that employees of Smokeez would mix chemicals received from China containing synthetic cannabinoids with acetone and plant materials before packaging the products and shipping them to Virginia. These products were then distributed in large quantities to stores in Southwest Virginia, including Get It Here, Cecil’s Variety, Get It Gone in Pound, Virginia, which was operated by James Pirtle, and Linda’s Place in Coeburn, Virginia, which was operated by Linda Pirtle. These businesses then sold the products to their customers in packaging claiming the products were “potpourri” and “incense.” The operators of these businesses also attempted to conceal their illegal activity by claiming that the products were “not for human consumption” even though the testimony of many witnesses at trial was that operators of the stores knew their products were being smoked by the purchasers in order to achieve effects similar to smoking marijuana.

The evidence at trial demonstrated that the Southwest Virginia Regional Drug Task Force in Big Stone Gap and the Wise County Sheriff’s Office began investigating the operations of McConnell, Stephens, Vestal, Jim Pirtle, Linda Pirtle, and others, in 2012. This investigation included numerous controlled purchases of synthetic cannabinoids, surveillance, package interceptions, financial investigation, and interviews. Law enforcement in Wise County coordinated their investigation with ongoing investigations being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Drug Enforcement Administration, Gainesville Police Department, Alachua County Sheriff’s Department, and Palatka Police Department.

On September 27, 2013, nine state and federal search warrants were executed by local, state and federal law enforcement in Wise County, Virginia, Gainesville, Florida, and Palm Coast, Florida at businesses and residences of those involved in the illegal distribution ring. As a result of the search warrants, law enforcement seized more than forty kilograms of synthetic cannabinoid products and more than $50,000 in United States currency. Evidence heard by the jury from employees of the businesses involved included that the cannabinoid products were sold at a price of $10 a gram and that daily sales for each store ranged from $800 - $2,000 a day. During the trial, experts in pharmacology testified that the products sold by McConnell, Stephens, and others, were extremely harmful when ingested by humans causing seizures, organ damage, hallucinations, and agitation.

At sentencing, Cecil A. McConnell, Jr., faces a potential maximum sentence of eighty-three years imprisonment and fines of up to $3,750,000. His sentencing is scheduled for January 22, 2015.

At sentencing, Doulas Eugene Stephens faces a potential maximum sentence of forty-four years imprisonment and fines of up to $1,750,000. His sentencing is scheduled for January 22, 2015.

At sentencing, Emmanuel Vestal faces a potential maximum sentence of eight years imprisonment and a fine of up to $500,000. His sentencing is scheduled for January 8, 2015.

At sentencing, Victoria Hoyt faces a potential maximum sentence of eight years imprisonment and a fine of up to $500,000. Her sentencing is scheduled for January 8, 2015.

At sentencing, James Pirtle faces a potential maximum sentence of eight years imprisonment and a fine of up to $500,000. His sentencing is scheduled for January 6, 2015.

At sentencing, Linda Pirtle faces a potential maximum sentence of twenty years imprisonment and a fine of up to $1,000,000. Her sentencing is scheduled for January 8, 2015.

At sentencing, Vicki Curry faces a potential maximum sentence of three years imprisonment and a fine of up to $250,000. Her sentencing is scheduled for January 6, 2015.

At sentencing, Cynthia Johns faces a potential maximum sentence of twenty years imprisonment and a fine of up to $1,000,000. Her sentencing is scheduled for January 8, 2015.

The investigation of the case was conducted by the Southwest Virginia Regional Drug Task Force in Big Stone Gap, Virginia, Wise County Sheriff’s Office, St. Paul Police Department, St. Paul, Virginia, Coeburn Police Department, Coeburn, Virginia, Virginia Alcohol Beverage Control, Virginia State Police, Gainesville Police Department, Gainesville, Florida, Alachua County Sheriff’s Department, Gainesville, Florida, Palatka Police Department, Palatka, Florida, Drug Enforcement Administration, United States Marshals Service, and Bureau of Alcohol, Tobacco, Firearms, and Explosives. The Wise County Commonwealth’s Attorney’s Office and the United States Attorney’s Offices for the Northern and Middle Districts of Florida assisted in the investigation and prosecution of this case. Assistant United States Attorney Zachary Lee prosecuted the case for the United States.

HARRISONBURG, VIRGINIA – A citizen of Honduras who previously pled guilty to charges related to human trafficking was sentenced today in the United States District Court for the Western District of Virginia in Harrisonburg.

Elin Coello-Ordonez, 32, who pled guilty in June 2013 to one count of conspiring to recruit, entice, harbor, transport, provide, obtain and maintain a person in an interstate venture that used force, threats of force, fraud or coercion to cause a person to engage in a commercial sex act, was sentenced this morning in District Court to 10 years in federal prison. The defendant is currently serving a five-year federal prison term on an immigration charge which rose out of the same investigation. In total, Coello-Ordonez will serve 15 years in federal prison for this matter.

“Mr. Coello-Ordonez forced the young victim in this case to engage in prostitution, then physically abused her when she resisted,” United States Attorney Timothy J. Heaphy said today. “We must continue to do all we can to identify and aggressively pursue similar patterns of human trafficking, which is sadly on the rise in our communities. We must also connect the victims of these awful crimes with services and relief, as the scars of trafficking are extremely difficult to erase.”

“Sex trafficking is one of the most heinous crimes HSI investigates. It sickens me that someone can treat another human being like a mere commodity,” said Clark Settles, Special Agent in Charge of Homeland Security Investigations Washington, D.C. “Our special agents and law enforcement partners work tirelessly to eradicate sex trafficking- no one should have to endure the horrors associated with this crime.”

“The Albemarle County Police Department takes human trafficking very seriously. We are working with our federal, state and local partners to uproot human trafficking in our community. This is an example of successful multi-jurisdictional collaboration,” said Colonel Steve Sellers, Chief of Police for the Albemarle County Police Department.

According to evidence previously presented by Assistant United States Attorney Craig “Jake” Jacobsen, Coello-Ordonez travelled to Honduras in February 2010 and soon thereafter met Jane Doe #1 (the victim), a 17-year-old Honduras citizen. The two soon became boyfriend and girlfriend. The defendant promised the victim that he could get her a waitressing job in Harrisonburg, Virginia. Consequently, in August 2010, days before the victim’s eighteenth birthday, the defendant smuggled her across the border and into the United States.

Upon arrival in Harrisonburg, Virginia, it soon became clear to the victim that the defendant was involved in the operation of a prostitution ring, which consisted of brothels located in Harrisonburg and Charlottesville, Virginia. It became equally clear that there was no waitressing job for the victim. After several months, the defendant told the victim she was going to have to work as a prostitute and have sex with men to earn money. The victim refused. As a result, the defendant verbally and physically abused her. The defendant slapped, kicked and punched the victim until she agreed.

From January 2011 to July 2011, the defendant forced the victim to work as a prostitute at his brothels in Virginia, as well as brothels operated by others in Pennsylvania and Maryland. The victim was forced to have sex with as many as 30 men a day.

On July 16, 2011, the victim called 911 several times because the defendant was beating her. When the police arrived, the victim began to shake uncontrollably and told police the defendant had physically assaulted her. The victim had sustained multiple bruises and her right eye was swollen shut. The defendant was arrested and the victim placed in a shelter for Human Trafficking victims.

The investigation of the case was conducted by the Western District of Virginia’s Human Trafficking Task Force, headed by the United States Attorney’s Office for the Western District of Virginia. Agencies who assisted in the investigation include: U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Albemarle County Police Department, the United States Secret Service, the Department of State Diplomatic Security, the Hyattsville, Maryland Police Department, the Virginia Fusion Center, the Computer Crimes Division of the Virginia Attorney General’s Office, the Virginia State Police, the Harrisonburg Police Department and the University of Virginia’s Women’s Center. Assistant United States Attorney Craig “Jake” Jacobsen prosecuted the case for the United States.

ABINGDON, VIRGINIA – United States Attorney Timothy Heaphy and Virginia Attorney General Mark Herring announced that Walter Dale Stumbo, age 52, Sonya K. Stumbo, age 51, and Joshua Dale Stumbo, age 26, of Floyd County, Kentucky, were sentenced to prison today in United States District Court in Abingdon, Virginia, for their roles in operating the “Big Blue” cock fighting pit in McDowell, Kentucky. In addition, the Court ordered the Stumbos to forfeit $905,208.64. Law enforcement agents seized all of the Stumbos’ assets to be credited to the forfeiture.

“The Big Blue Sporting Club was a sophisticated criminal operation that collected substantial profits by abusing animals,” United States Attorney Timothy J. Heaphy said today. “The fighting birds were horribly mistreated by these defendants. Cases like this help bring illegal private gambling and animal cruelty out of the shadows. Thanks to the persistence and creativity of law enforcement, this operation has been exposed, its profits disgorged, and its operators held accountable.”

Sonya Stumbo was convicted on all counts at the conclusion of a three day trial on August 6, 2014. Walter Dale Stumbo and Joshua Dale Stumbo both pled guilty to all charges without the benefit of a plea agreement. The Stumbos each were convicted of one count of conspiring to operate an illegal gambling enterprise and illegally conduct cock fights; five counts of transporting fighting roosters across state lines; and five counts of transporting bird fighting knives across state lines. Two other co-defendants, Wesley Dean Robinson and his son, Jonathan Robinson, pled guilty pursuant to plea agreements, cooperated with law enforcement and were sentenced previously in accordance with their plea agreements. Jonathan Robinson also pled guilty to a drug distribution charge and his sentence included time for that offense. Wesley Dean Robinson was ordered to forfeit $50,000 and Jonathan Robinson was ordered to forfeit $10,000.

The sentences imposed on the five defendants in the case are as follows:

DEFENDANT TERM OF IMPRISONMENT Walter Dale Stumbo 18 months Sonya Stumbo 10 months Joshua Dale Stumbo 10 months Jonathan Robinson 12 months and 1 day Wesley Dean Robinson 6 months

In imposing sentence, United States District Judge James P. Jones stated “It does not enhance the human being to inflict pain on animals. It simply doesn’t. It’s something that ought to stop. There is no good purpose for it, and, as the government points out, bad things happen around these types of events -- gambling obviously occurred, people spending money that they have no business spending, and we can all imagine the grief that may occur in families and individuals who become addicted to something like this. It diminishes us as human beings to treat animals in this fashion, and I think Congress has enacted a law that deserves enforcement.”

The successful prosecution was the result of a joint undercover operation by Virginia and Federal authorities. Evidence showed that the Stumbos, Robinsons and others organized a large scale and comprehensive cock fighting operation at the Big Blue Sportsmen’s Club (“Big Blue”) in McDowell, Kentucky, which included collecting “parking fees” from spectators, entrance fees from handlers and offering for sale such services as antibiotics for fighting birds, a full-service restaurant for spectators, cock houses for rental, and fighting gaffes for fighting cocks. The Robinsons transported birds and fighting gaffes from Wise County, Virginia, to Big Blue in Kentucky. On fight weekends at Big Blue, spectators and handlers traveled from Virginia, North Carolina, South Carolina, Michigan, Ohio, West Virginia, Maryland, Georgia and other states. Spectators and participants were only allowed entry if they held a valid membership card. Each person was charged a one-time fee of $20 for the membership card. Entry fees to participate in the fighting were as high as $2,500 per entrant. At times, over 400 people attended and paid the $20 “parking fee.” While fights were taking place and after spectators had arrived, Dale Stumbo caused a bulldozer to be placed on the entrance road to the pit. The bulldozer remained in place until the fights concluded. Investigators executed search warrants on May 3, 2014, the second day of a two day derby billed as the “World Championship” and seized over $100,000 in cash from the Stumbos’ home near McDowell, Kentucky. Assistant United States Attorney Randy Ramseyer and Special

Assistant United States Attorney/Virginia Assistant Attorney General Michelle Welch prosecuted the case on behalf of the United States. The case is being investigated by the United States Department of Agriculture – Office of Inspector General, the Virginia Alcohol Beverage Control Bureau of Law Enforcement, and the Spotsylvania County Sheriff’s Office. In addition, the following agencies assisted in the arrests or related proceedings: Virginia Animal Fighting Task Force; Virginia State Police Tactical Team; Southwest Virginia Regional Task Force; Botetourt County Commonwealth’s Attorney’s Office; Wise County, Virginia, Sheriff’s Office and Commonwealth’s Attorney’s Office; Virginia State Veterinarian’s Office; United States Homeland Security Investigations; Kentucky State Police; the United States Attorney’s Office for the Eastern District of Kentucky; and the American Society for the Prevention of Cruelty to Animals.

HARRISONBURG, VIRGINIA – A Winchester, Va., man, who previously admitted to distributing the heroin that caused the overdose deaths of his father and his father’s girlfriend in June 2013, was sentenced this morning in the United States District Court for the Western District of Virginia in Winchester.

Following an investigation by members of the Northwest Virginia Regional Drug Task Force, and the Drug Enforcement Administration, Thomas Allen Breeden, 27, pled guilty to one count of distributing heroin. Today in District court, Breeden was sentenced to 14 years in federal prison and five years of supervised release thereafter.

“This case is another tragic example of the rising tide of heroin abuse we are experiencing in this district and around the country,” United States Attorney Timothy J. Heaphy said today. “Law enforcement agencies have combined resources to more effectively target and prosecute the distribution of this dangerous drug. But enforcement alone won’t be enough to reverse this dangerous trend. As we bring these cases, we must also educate the community about the dangers of heroin and provide viable treatment solutions to those struggling with addiction. A comprehensive approach to the problem is essential to impact change and reverse the trend of destruction we have seen.”

Breeden previously admitted to driving to Baltimore, Md., on June 10, 2013 and purchasing 1 gram of heroin for $125. He took that heroin to the Winchester Budget Motel where he met his father and his father’s girlfriend. All three used the heroin purchased by Breeden. After leaving the motel room for a short period of time, Breeden returned to find both his father and the girlfriend unconscious. Breeden attempted to revive both parties by splashing cold water on their faces and wrapping cold, wet towels around their necks. With no success, Breeden called 911 at 10:06 p.m. First responders arrived and declared both parties dead at 10:17 p.m. It was later determined that both parties died from “adverse effects of heroin.”

The investigation of this case was conducted by the Northwest Virginia Regional Drug Task Force, which includes the Virginia State Police, and the Drug Enforcement Administration. The Task Force includes law enforcement from the counties of Frederick, Clarke, Shenandoah, Warren and Page as well as the cities and towns of Winchester, Front Royal and Strasburg. Assistant United States Attorney Donald Wolthuis prosecuted the case for the United States.

ROANOKE, VIRGINIA – Today, Michael Botticelli, Acting Director of National Drug Control Policy (ONDCP), announced the designation of 26 additional counties and cities in 11 states as High Intensity Drug Trafficking Areas (HIDTAs). The designations will enable the 26 counties and cities to receive Federal resources to further the coordination and development of drug control efforts among Federal, state, local, and tribal law enforcement officials. It also will allow local agencies to benefit from ongoing HIDTA-coordinated initiatives working to reduce drug use and its consequences across the United States.

Locally, Tazewell County in Southwest Virginia was added to the Appalachia HIDTA.

“The admission of Tazewell County into the Appalachia HIDTA program will provide much needed resources for law enforcement in our ongoing effort to stem the tide of opiate abuse in Southwest Virginia,” United States Attorney Timothy J. Heaphy said today. “HIDTA provides valuable assistance to investigators, including funding for training, overtime and equipment. HIDTA also facilitates information sharing about particular cases and targets across jurisdictional lines. These much-needed resources will support ongoing efforts in Tazewell County and plug that county into a larger, multi-state enforcement network.”

Created by Congress in 1988, the HIDTA program serves as a catalyst for coordination among Federal, state, local, and tribal law enforcement agencies operating in areas determined to be critical drug trafficking regions of the United States. Law enforcement organizations working within HIDTAs assess drug-trafficking problems and design specific initiatives to decrease the production, transportation, distribution, and chronic use of drugs and money laundering. There are currently 28 HIDTAs located in 47 states, as well as in Puerto Rico, the U.S. Virgin Islands, and the District of Columbia.

In July, the Obama Administration released a science-based drug policy that addresses the national drug challenge as a public health issue, not just a criminal justice issue. The 2014 National Drug Control Strategy is built upon the latest scientific research demonstrating that addiction is a chronic disease that can be successfully prevented and treated, and from which people can recover. The Strategy directs Federal agencies to expand community-based efforts to prevent drug use before it begins, empower healthcare workers to intervene early at the first signs of a substance use disorder, expand access to treatment for those who need it, support the millions of Americans in recovery, and expand “smart on crime” approaches to drug enforcement while reducing the stigma associated with substance use disorders.

For more information about the Office of National Drug Control Policy visit: http://www.whitehouse.gov/ondcp.

For information on the High Intensity Drug Trafficking Areas program visit: www.whitehouse.gov/ondcp/high-intensity-drug-trafficking-areas-program.

ABINGDON, VIRGINIA – Mandie Marie Bishop, age 33, of Jonesville, Virginia, pled guilty yesterday, in the United States District Court for the Western District of Virginia in Abingdon to two counts of bank fraud and one count of making false statements in a matter within the jurisdiction of the executive branch of the United States.

Evidence was presented at yesterday’s hearing that Bishop worked as a secretary and assistant in a law office located in Lee County, Virginia. Bishop’s employer, an attorney in Lee County, Virginia, became conservator of an elderly woman’s assets in late December 2011. Bishop’s employer allowed Bishop to access the elderly woman’s bank accounts at Farmers and Miners Bank and Lee Bank and Trust Company, but Bishop did not have signature authority on the accounts. As early as January 17, 2012, Bishop began fraudulently issuing and cashing checks from the elderly woman’s accounts.

Between January 17, 2012, and May 16, 2013, Bishop caused $106,672 to be fraudulently obtained from the elderly woman’s bank account at Lee Bank and Trust Company. Between June 29, 2012 and May 16, 2013, Bishop caused at least $11,382 to be fraudulently obtained from the checking account at Farmers and Miners Bank. On May 16, 2013, after Farmers and Miners Bank made her employer aware of the fraudulent activity at the bank, her employer deposited $10,558 into the account to replace a portion of the missing funds.

Bishop continued in her role as a secretary and assistant with the same employer and between May 17, 2013, and December 10, 2013, caused at least an additional $50,341 to fraudulently be obtained from the elderly woman’s checking account.

In addition to fraudulently issuing and cashing checks, Bishop caused over $7,000 to be used from the conservator accounts for unnecessary expenses. As a part of Bishop’s scheme to defraud, she also caused certificates of deposit to be cashed and caused money to be transferred from an interest bearing savings account to a non-interest bearing checking account, thereby causing the elderly woman to be deprived of accumulated interest that she otherwise would have received.

On May 8, 2014, Bishop’s employer deposited $82,246 into the elderly woman’s Lee Bank and Trust Company bank account and on August 19, 2014, her employer caused $7,285 to be deposited into the elderly woman’s Lee Bank and Trust Company bank account.

As part of the plea agreement, Bishop agreed to have restitution ordered for all funds directly taken as well as amounts paid for services not rendered and for unnecessary expenses that were incurred.

United States District Judge James P. Jones scheduled sentencing for December 15, 2014, at 10:30 a.m. At sentencing, Bishop faces a statutory maximum sentence of 65 years in prison and a fine of $2,250,000. The sentencing guidelines will call for a sentence significantly less than the statutory maximum.

The investigation of the case was conducted by the United States Secret Service. Assistant United States Attorney Randy Ramseyer is prosecuting the case for the United States.

ROANOKE, VIRGINIA – On Wednesday, September 24, 2014, the Roanoke High Intensity Drug Trafficking Area (HIDTA) group, which consists of officers from the City of Roanoke, Roanoke County, City of Salem, Town of Vinton, Virginia State Police and the Drug Enforcement Administration Roanoke Resident Office, served a series of search and arrest warrants in relation to a long-term heroin trafficking investigation. These warrants were executed throughout the area and resulted in multiple arrests.

As a result of yesterday’s HIDTA operation, four people have been arrested and charged via federal criminal complaints. Those charged include:

Vaughn Dixon Baylor, Jr., 46, of Roanoke, has been charged with one count of distributing heroin.

Stephon Clifford Bryant, 35, of Roanoke, has been charged with two counts of distributing heroin.

Anthony Curtis Barnes, 42, of Salem, has been charged with one count of distributing cocaine and one count of possessing with the intent to distribute heroin.

Jamaal Eugene Barber, 33, of Roanoke, has been charged with one count of distributing heroin.

The investigation is part of the Roanoke HIDTA Group’s continued focus on combating the rising presence of heroin in and around the Roanoke Valley. The investigation of the case was conducted by the members of the Roanoke High Intensity Drug Trafficking Area (HIDTA) group, which consists of officers from the City of Roanoke, Roanoke County, City of Salem, Town of Vinton, Virginia State Police and the Drug Enforcement Administration Roanoke Resident Office. Assistant United States Attorney Ashley B. Neese will prosecute the case for the United States.

A criminal complaint is only a charge and not evidence of guilt. The defendants are entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.

ABINGDON, VIRGINIA – A Federal grand jury sitting in the United States District Court for the Western District of Virginia in Abingdon has indicted three individuals on healthcare fraud and kickback charges.

In an indictment returned today, the grand jury has charged Beth Palin, 46, of Bristol, Tenn., Joseph Webb, 52, of Bristol, Tenn., and Mary Curtiss, 59, of Bristol, Tenn., each with one count of healthcare fraud, one count of conspiracy to commit healthcare fraud and one count of offering or paying a kickback.

According to the indictment, Palin and Webb owned Bristol Laboratories and Mountain Empire Medical Care. Dr. Curtiss, an ear, nose and throat specialist, was the physician of record at Mountain Empire Medical Care. While working at Mountain Empire Medical Care, Curtiss purported to be running a substance abuse treatment program, prescribing Suboxone, Subutex and generic buprenorphine for the treatment of opiate addiction. Mountain Empire Medical Care operated on a cash-only basis and did not accept Medicare, Medicaid or insurance of any kind, charging cash patients as much as $250 per visit.

Mountain Empire Medical Care also required that every patient undergo a urine drug screen at every weekly appointment, which was sent exclusively to Bristol Labs, which did accept private insurance, Medicare and Medicaid. The urine drug screen was a precondition to getting a Suboxone prescription. Bristol Labs, Mountain Empire Medical Care, and CKK, a now-deceased doctor who operated a substance abuse clinic in the same manner as Mountain Empire Medical Care, and also exclusively used Bristol Labs for urine drug screens, treated insured patients with two different, expensive automated urine drug screens. Uninsured patients were treated using one, much cheaper non-automated test, referred to as a “point of care” or “quick cup” drug screen.

Medicaid, Medicare or a patient’s private insurance carrier were charged up to $2,000 for each urine drug screen for the in-house testing. Medicaid, Medicare or a patient’s private insurance carrier were additionally charged up to $1,125 for each urine drug screen confirmation sent to an outside laboratory. Insured patients paid nothing out of pocket for either test. Patients without insurance were charged between $10-$25 cash for the single “quick cup” drug screen.

While working as Mountain Empire Medical Care’s primary physician, Curtiss was paid $1,400 per day, no matter how much work she did or how many patients she saw. Curtiss’ salary was well above market value and was only possible due to the large income generated by her procedure of ordering each and every patient to undergo weekly drug screening at Bristol Labs. A Bristol Labs employee was also always working at Mountain Empire Medical Care, serving as office manager, urine drug screen “collector” and receptionist.

During the course of the scheme, Palin, Webb, Curtiss and CKW, caused fraudulent billing in the amount of $12,459,211 to be submitted to Virginia Medicaid, TennCare, Medicare and private insurance companies, and received over $1,203,000 to which they were not entitled.

If convicted each defendants faces up to 25 years in prison and fines of $750,000.

The investigation of the case was conducted by the Department of Health and Human Services, Office of Inspector General, the Virginia Office of the Attorney General, Medicaid Fraud Control Unit, the Tennessee Bureau of Investigation, the United States Attorney’s Office for the Eastern District of Tennessee, the Virginia State Police, the Bristol, Virginia Police Department, the Bristol, Tennessee Police Department, the Scott County Sheriff’s Office and the Internal Revenue Service, Criminal Investigations Division. Special Assistant United States Attorney Janine Myatt and Assistant United States Attorney Zachary Lee will prosecute the case for the United States.

A Grand Jury Indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.

September 23, 2014

DANVILLE, VIRGINIA – A former corrections officer at the Danville Adult Detention Center pled guilty today to a charge related to his admitted stealing of mail addressed to inmates at the facility.

Ezra Lamont Price, 33, of Danville, waived his right to be indicted today and pled guilty to an Information that charged him with one count of theft of mail. At sentencing, the defendant faces up to five years in federal prison and/or a fine of up to $250,000.

Today in District Court, Price admitted to taking mail intended for inmates being housed at the Danville Adult Detention Center, opening that mail and taking things of value contained within. Those items included cash, money orders and gift cards.

During an investigation by the United States Postal Service-Office on the Inspector General, several pieces of mail containing gift cards were sent in an undercover capacity from federal agents to prisoners at the Danville Adult Detention Center. That mail and the gift cards contained within, were diverted by Price and used at local businesses.

The investigation of the case was conducted by the United States Postal Service- Office of the Inspector General, the United States Postal Inspection Service and the Danville City Police Department.  Assistant United States Attorney Laura Rottenborn will prosecute the case for the United States.

ROANOKE, VIRGINIA – A Federal grand jury sitting in the United States District Court for the Western District of Virginia in Roanoke has charged a local doctor with federal drug and child pornography charges.

In an indictment returned today, the grand jury has charged Steven Joseph Collins, age 51, of Roanoke County, Virginia, with one count of receipt of child pornography and two counts of distributing oxycodone by authorizing controlled substance prescription orders outside the usual course of professional practice.

According to the indictment, between July 2010 and July 2013, Collins received digital video and image files of a minor who had not obtained 12-years-of-age, engaged in sexual activity. In addition, the indictment alleges that on separate occasions, January 7, 2014 and April 2, 2014, Collins, in his role as a medical doctor, authorized controlled substance prescription orders for oxycodone outside the usual course of professional practice.

The investigation of the case was conducted by the Tactical Diversion Squad (TDS) of the Drug Enforcement Administration (DEA) and the Department of Homeland Security. The local TDS is comprised of law enforcement officers from the Virginia State Police (VSP), Roanoke City Police Department, Montgomery County Sheriff’s Office, Bedford County Sheriff’s Office, Health and Human Services Office of Inspector General and DEA. Assistant United States Attorney Jennie Waering will prosecute the case for the United States.

ABINGDON, VIRGINIA – United States Attorney Timothy J. Heaphy announced today that the Anti-Defamation League [ADL] has awarded a local team of prosecutors and investigators with the group’s 2014 SHIELD Award. SHIELD stands for Service, Honor, Integrity, Excellence, Leadership and Dedication.

Assistant United States Attorney Zachary Lee of the United States Attorney’s Office for the Western District of Virginia, FBI Special Agent Timothy Burke of the Richmond Division and FBI Special Agent Stanley Slater of the Atlanta Division were presented with their awards during a September 17 ceremony in Washington D.C. The three were presented the award for the investigation and prosecution of Michael Lee Fullmore.

“The Fullmore prosecution was yet another example of the strong level of interagency cooperation we enjoy in Southwest Virginia,” United States Attorney Heaphy said today. “We are pleased and grateful that the Anti-Defamation League recognized that coordination and the extraordinary efforts of AUSA Lee and the agents who pursued this case.”

Fullmore, a member of the Georgia Knights of the Ku Klux Klan, was sentenced to 52 months of federal incarceration following pleading guilty to two counts of providing firearms to a convicted felon. According to information presented in court by AUSA Lee, Fullmore began taking steps to establish a more violent and radical sub-group of the KKK, which he intended would commit violent crimes against minorities.  Fullmore believed the new KKK sub-group could be supported by selling firearms to convicted felons and militia groups.

On numerous occasions, Fullmore sold firearms, including an AR-15 assault rifle and an AK-47 assault rifle with an obliterated serial number, to a convicted felon in Georgia and Virginia who was working with the FBI as a confidential informant.

At the ceremony the ADL honored law enforcement heroes who have protected the nation and communities from hate crimes and terrorist threats.  The SHIELD award was created in 2010 to annually honor law enforcement for major successes in the fight against hate crimes and domestic and international terrorism.  The Award’s name reflects law enforcement’s role as protectors, and is also an acronym for the core values of the profession:  Service, Honor, Integrity, Excellence, Leadership, and Dedication.

AUSA Zachary Lee, along with FBI SAs Tim Burke (far left) and Stan Slater, were recently awarded the Anti-Defamation League's 2014 SHIELD Award.

CHARLOTTESVILLE, VIRGINIA – A pair of men, previously convicted of operating one of the largest marijuana grow operations encountered in the area, were sentenced yesterday afternoon in the United States District Court for the Western District of Virginia in Charlottesville.

Joaquin Gonzalez Vicencio, 30, and Joaquin Berumen Cortes, 24, both Mexican citizens who had been living locally in Harrisonburg, Va., were convicted of four counts related to a conspiracy to grow marijuana within the George Washington and Jefferson National Forests in Highland County following a three-day jury trial in December 2013. Cortes was also convicted of illegally reentering the United States. Yesterday District Court, Vicencio was sentenced to 134 months of federal incarceration to be followed by five years of supervised release. Cortes was sentenced to 120 months of federal incarceration to be followed by five years of supervised release.

“The misuse of federal land to cultivate marijuana remains an enforcement priority of the Department of Justice,” United States Attorney Timothy J. Heaphy said today. “These defendants operated one of the largest outdoor marijuana growing sites we have encountered in this or many other districts, conduct for which they have now been held accountable.”

According to evidence presented at trial by Assistant United States Attorney Elizabeth G. Wright, Cortes and Vicencio conspired together to grow at least 4,571 marijuana plants in the George Washington and Jefferson National Forests in Highland County until they were caught on July 2, 2013. Both defendants planted and cultivated the marijuana plants, which were contained in four gardens that were connected by footpaths. Cortes and Vicencio resided in a camp at the grow site and routinely used fertilizer, insecticides, pesticides and rat poison around the area to protect their crop.

The investigation of the case was conducted by the U.S. Forest Service and the Alleghany Highlands Drug Task Force, with assistance from the Drug Enforcement Administration. The Alleghany Highlands Drug Task Force includes officers from the counties of Alleghany, Highland and Bath, as well as the City of Covington and the Virginia State Police. Assistant United States Attorney Elizabeth G. Wright prosecuted the case for the United States.

ABINGDON, VIRGINIA – A former sponsored residential services provider, who pled guilty in May to charges that she illegally converted Social Security disability benefits for her own use, was sentenced yesterday in the United States District Court for the Western District of Virginia in Abingdon.

Tamara Rochelle Cox Parnell, 36, Galax, Virginia, waived her right to be indicted on May 13, 2014 and pled guilty to two counts of knowingly and willfully converting to her own use Social Security disability payments to another for which she was representative payee. Yesterday in District Court, Parnell was sentenced to four months imprisonment and three years of supervised release. She was also ordered to pay $34,899 in restitution.

Parnell has admitted that while serving as a sponsored residential services provider for Victim 1, a mentally disabled adult, she willfully and without the knowledge of Victim 1, converted $29,715 of Social Security disability benefits paid to Victim 1 to her own personal use.

The investigation of the case was conducted by the Galax Police Department and the United States Secret Service. Assistant United States Attorney Jennifer Bockhorst prosecuted the United States.

WASHINGTON – Assistant United States Attorney Jeb Terrien of the U.S. Attorney’s Office for the Western District of Virginia was one of 243 members of the Department of Justice recognized by Attorney General Eric Holder and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 30th annual Director’s Awards Ceremony today in Washington D.C.

The Western District of Virginia was one of 44 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.

In his prepared remarks to awardees, Attorney General Holder said, “Locally, nationally, and internationally, you represent the very best that this Department has to offer. Your work embodies our ongoing commitment – not merely to win cases, but to do justice; to protect our fellow citizens from crime, violence, and terrorism; to empower the most vulnerable among us; and to uphold the rule of law.”

EOUSA Director Monty Wilkinson echoed those sentiments, saying to the recipients, “You have persevered, and remained focused and motivated – achieving remarkable results in work that makes a difference in the lives of citizens across our great country. The vast scope of your collective accomplishments is nothing short of exceptional.”

Assistant United States Attorney Jeb T. Terrien is recognized for his leadership in a three-year undercover investigation of a contraband cigarette trafficking network that resulted in the successful prosecution of 26 defendants and the forfeiture of over $10 million. Working with two Special Agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives, AUSA Terrien supervised a long-running undercover operation that involved a commercial warehouse in which agents bought and sold untaxed and contraband cigarettes.

This investigation uncovered criminal enterprises that spanned multiple states and foreign countries, and involved domestic and international money laundering, contraband and counterfeit cigarette trafficking, drug smuggling, and other offenses. When one particular defendant went to trial, AUSA Terrien and his trial team presented almost 500 exhibits to obtain a conviction. AUSA Terrien’s diligent and persistent work over the course of this long-running investigation led to the issuance of six separate indictments and numerous guilty pleas.

“AUSA Terrien and the agents who worked these cases devoted countless hours to this investigation, which resulted in numerous convictions and tens of millions of dollars in forfeited assets,” United States Attorney Timothy J. Heaphy said today. “The trafficking of counterfeit and untaxed cigarettes deprives Americans of tax revenue and will be vigorously prosecuted by this Department.”

EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.

ABINGDON, VIRGINIA – A Crooksville, Ohio man has admitted to threatening to injure officers of the Lee County, Virginia Sherriff’s Office during a hearing this week in the United States District Court for the Western District of Virginia in Abingdon.

Jeffrey Allen Hinkle, Jr., 31, of Crooksville, Ohio, pled guilty to a one-count Information charging him with transmitting in interstate commerce a threat to injure another person.

This week in the United States District Court, Hinkle admitted that on May 21, 2014, he called the Lee County, Virginia Sherriff’s Office and threated to “pull-up beside every cruiser . . .with [a] county deputy and shoot the officer in his face” if the sheriff’s office did not intervene in a civil dispute Hinkle’s relatives were having with a neighbor in Lee County, Virginia.

At the sentencing scheduled for December 4, 2014 in Big Stone Gap, Hinkle faces a maximum possible penalty of up to 5 years in prison and/or a fine of up to $250,000.

The investigation of the case was led by Federal Bureau of Investigation with the assistance of the Lee County, Virginia Sheriff’s Office. The United States Marshals Service led the execution of the arrest warrant in Ohio. Special Assistant United States Attorney Kevin Jayne is prosecuting the case for the United States.

CHARLOTTESVILLE, VIRGINIA – Three men, including the athletic director at Monticello High School and the vice president of Downtown Athletic Store, pled guilty this morning in the United States District Court for the Western District of Virginia to a federal misdemeanor charge related to bid rigging.

In separate hearings this morning in Federal Court, Fitzgerald Arnette Barnes, 50, of Louisa, Va., David Mayhew Deane, 54, of Keswick, Va., and Charles Albert Phillips, 48, of Annapolis, Md., waived their right to be indicted and pled guilty to a one-count Information charging each with one count of knowingly embezzling money belonging to the United States.

“When school officials spend taxpayer dollars, they must comply with procurement rules that encourage competition and ensure that schools obtain the best possible price,” United States Attorney Timothy J. Heaphy said today. “These three individuals worked together to circumvent these important procurement regulations by creating dummy bids for athletic apparel and equipment. This case demonstrates our continuing commitment to ensuring that public funds are responsibly handled.”

Barnes, the athletic director at Monticello High School, has admitted to being involved with Deane, the Vice President of Downtown Athletic, and Phillips, the Vice President of Sales for Team Distributor, a sports apparel retailer in Maryland, in a scheme to fix bids on athletic apparel purchased for Monticello High School.

The three have admitted that between August 2008 and August 2010 they fraudulently created price bids that were used as the basis for contracts involving the sale of athletic equipment and apparel from Downtown Athletic to Monticello High School. Albemarle County policy requires a bid from three different vendors when entering into contracts with private companies for goods and services which cost more than $1000.

Over the course of several years, Barnes directed Deane to obtain and submit to Monticello High School the three required bids, one bid for Downtown Athletic and two representing other, fictitious retailers, ensuring Downtown Athletic would be awarded the contract.

On several occasions, Deane contacted Phillips and asked him to also submit false bids to Monticello High School that were higher than the bid submitted by Downtown Athletic Store. After receiving the two false and one authentic bid, Barnes awarded multiple contracts for the sale of athletic apparel and equipment to Deane and Downtown Athletic.

Following today’s guilty plea hearing, all three defendants were sentenced. Phillips was ordered to pay a $350 fine, Barnes was ordered to pay a $750 fine and Deane was ordered to pay a $1,500 fine.

The investigation of the case was conducted by the Federal Bureau of Investigation. United States Attorney Timothy J. Heaphy and Assistant United States Attorney Ronald Huber prosecuted the case for the United States.

ABINGDON, VIRGINIA – A Wise, Va. dentist has admitted to obtaining hydrocodone by fraud and to illegally distributing over 2,500 hydrocodone pills.

Newton Carroll Mullins, 65, of Wise, Va., who operates a dental practice in Wise, Virginia, waived his right to be indicted this morning and pled guilty to a two-count Information charging him with one count of possession with the intent to distribute and distributing hydrocodone and one count of obtaining hydrocodone by fraud.

“The abuse of prescription drugs continues to plague communities in Southwest Virginia and across the country,” United States Attorney Timothy J. Heaphy said today. “The problem impacts all levels of society and destroys communities. Long-term abuse of prescription drugs often leads to the other opioids like heroin. We must attack this problem with a comprehensive approach which combines enforcement with prevention and treatment.”

Today in District Court, Mullins admitted that between December 2012 and March 2014 he ordered 7400 hydrocodone pills from a drug distributor for use by his dental practice. However, Mullins instead used the hydrocodone for his personal use and the use of his then girlfriend. In addition, Mullins admitted to writing prescriptions for hydrocodone to his employees, who would fill the prescriptions and provide the drugs to Mullins.

At sentencing, Mullins faces a maximum possible penalty of up to 10 years in prison and a fine of up to $500,000 for count one and a maximum possible penalty of up to four years in prison and a fine of up to $250,000 for count two.

The investigation of the case was led by the Drug Enforcement Administration’s Tactical Diversion Squad (“TDS”), and included the assistance of the Health and Human Services – Office of the Inspector General. The Virginia State Police assisted the TDS with the execution of a search warrant of Dr. Mullins’ practice on April 23, 2014. Assistant United States Attorney Randy Ramseyer is prosecuting the case for the United States.

HARRISONBURG, VIRGINIA – Officials from the United States Attorney’s Office, the Virginia State Police, members of the Northwest Virginia Regional Drug Task Force, and the Drug Enforcement Administration announced today the most recent results of their ongoing fight against the growing heroin epidemic in the Western District of Virginia. Among those results was the sentencing of a pair of Strasburg residents who brought enough heroin into that Shenandoah County town to provide each resident of Strasburg with a dose of heroin.

The heroin epidemic, which in recent years has seen the number of overdose deaths and injuries spike in the northwest part of the district, continues to be a top priority for law enforcement officials in the region, and across the Commonwealth.

Today in District Court, Dwayne Fletcher and Megan Wooddell were sentenced for their participation in a multi-ounce heroin distribution conspiracy in and around Strasburg, Virginia. The conspiracy, which operated for several months and obtained large quantities of heroin from Philadelphia, Pennsylvania, brought enough of the drug into Strasburg to provide each of the town’s 6,398 residents with a dose of heroin.

This morning, Fletcher was sentenced to 87 months in federal prison. Wooddell was sentenced to 60 months in federal prison.

Officials also announced the sentencing of Dean Allen Roberson, 32, of Stephens City, Virginia. Roberson was previously convicted of distributing heroin which resulted in an overdose injury to another person. In that instance, Roberson traveled to Baltimore, Maryland and bought heroin. On March 21, 2014, he sold part of that heroin, and it led to the overdose of a woman in Stephens City. The victim was taken to the hospital shortly after overdosing and medical personnel concluded that if they had not intervened when they did, the overdose would have been fatal. Roberson was also convicted for his role in a conspiracy to distribute methamphetamine.

Today in District Court, Roberson was sentenced to 15 years of federal incarceration.

The United States Attorney’s Office for the Western District of Virginia, the Northwest Virginia Regional Drug Task Force which includes the Virginia State Police and the Drug Enforcement Administration continue to use all available resources to combat the epidemic rise of heroin abuse and overdose rates in the region.

In recent years, this cooperative group of law enforcement agencies has taken a proactive approach to address the rise in the use of heroin.

“Slowing the tide of heroin abuse has become an urgent priority for law enforcement,” United States Attorney Timothy J. Heaphy said today. “We must continue to vigorously pursue heroin traffickers and others who profit from the addiction of others. As we pursue this targeted enforcement, we must also support ongoing education, prevention and treatment initiatives. Like so many other issues plaguing our communities, we cannot simply arrest our way out of this problem. If we want to make real progress in our efforts to end heroin abuse, we must pursue a holistic, multi-pronged approach.”

“The significance of these arrests is measured in the total number of lives potentially saved,” said Captain Gary T. Settle, Commander of the Virginia State Police Bureau of Criminal Investigation’s Culpeper Field Office. “Through the persistent investigative efforts of the Northwest Virginia Regional Task Force, local, state and federal law enforcement across this region remain committed to protecting our residents from a heroin epidemic that has become a very deadly reality for so many families.”

“Heroin abuse equals death. Once this drug takes hold, it shatters dreams and ends lives. The DEA tirelessly works with our schools and communities to educate our youths and adults, alike, of the perils of heroin use,” said Special Agent in Charge Karl C. Colder of the DEA’s Washington Field Office. “Today’s sentencings are the result of DEA’s strong partnership with local and state law enforcement agencies in investigating and prosecuting criminal drug organizations that significantly affect our communities. DEA will continue to stand with our state and local authorities, dedicating all manpower and resources at our disposal to combat these ruthless heroin trafficking organizations.”

In addition to enforcement efforts, the cooperative agencies have taken a number of steps to educate the public about the dangers of heroin use and abuse. Over the course of the past 12 months, the agencies have hosted three heroin summits, which brought together community members, school leaders, prevention professionals and treatment officials for frank discussions about the heroin issue and how it can be addressed going forward.

“These initial meetings are just the beginning of what our communities need to do in addressing the heroin problem,” U.S. Attorney Heaphy said today. “We need communities hit by heroin abuse to continue this prevention work going forward. We will only be successful if we keep working as a team, across jurisdictional lines.”

The investigations of these cases were conducted by the Northwest Virginia Regional Drug Task Force, which includes the Virginia State Police, and the Drug Enforcement Administration. The Task Force includes law enforcement from the counties of Frederick, Clarke, Shenandoah, Warren and Page as well as the cities and towns of Winchester, Front Royal and Strasburg.

Assistant United States Attorney Elizabeth Wright prosecuted the cases for the United States.

DANVILLE, VIRGINIA – A Florida man, who was previously convicted of similar theft charges, pled guilty Monday, August 25, 2014, in the United States District Court for the Western District of Virginia in Danville to charges related to his theft of employee pension plan contributions and failing to pay the IRS the federal employment taxes withheld from employee paychecks.

Patrick Vincent Crowe, 62, most recently a resident of Florida, waived his right to be indicted and pled guilty to a two-count Information charging him with one count of theft or embezzlement from employee benefit plan and one count of failure to truthfully account for and pay withheld federal payroll taxes. As part of his plea agreement, Crowe was sentenced the same day to ten (10) years of federal incarceration.

“Mr. Crowe stole from his employees and ran a thriving local business into the ground,” United States Attorney Timothy J. Heaphy said today. “The United States Attorney’s Office will continue to pursue those like Mr. Crowe who fail to pay required federal taxes.”

According to a statement of facts entered into the record during the guilty plea hearing by Assistant United States Attorney Jennie L.M. Waering, Crowe was convicted in 2009 of two counts of theft and embezzlement from an employee benefit plan in Rhode Island and two counts of failing to pay over withheld employee taxes.  As a result, he served 48 months in prison and, upon his release, was prohibited by the Employee Retirement Income Security Act of 1874, from serving any employee benefit plan as an administrator or representative in any capacity.

Prior to his release on February 28, 2012, Crowe filed articles of incorporation for The Loyola Fund, Inc., listing himself as Vice President.  On February 29, 2012, the day after his release from federal incarceration, Crowe amended his articles of incorporation to list himself as President of The Loyola Fund, Inc., and almost immediately began to pursue the purchase of Southside Manufacturing Corporation in Danville, Virginia, for $2,922,780,  a purchase which was completed on April 5, 2013.

Following the sale of Southside Manufacturing to Crowe, office bookkeepers continued to prepare 401(K) plan contribution checks, but Crowe would not release the funds. When confronted about the missing contributions, Crowe said that the checks fell out of his briefcase.  In subsequent months, Crowe refused to sign similar checks. Others were returned with insufficient funds, despite the fact that Crowe was still paying himself $1,000 per week in salary.

In addition, upon the purchase of Southside manufacturing, Crowe ceased paying payroll taxes and often missed payments on the company’s employee medical plan.  In December 2013, after Southside defaulted on their loans, creditors exercised their rights to take possession of Southside’s collateral, which included the premises and equipment.  As a result, Southside Manufacturing closed its doors and more than 40 employees lost their jobs.

The federal employee tax withholding not paid by Crowe was $109,536, and the unpaid employer portion was $49,225.00.   The pension plan theft loss totaled $8,765.79.  The health plan theft loss was $6,421.86.  The total restitution Crowe was ordered by the Court to pay was $173,949.01.

The investigation of the case was conducted by the United States Department of Labor, Office of Inspector General and the Employee Benefits Security Administration, the United States Internal Revenue Service, Criminal Investigations Division, and the Pittsylvania County Sheriff’s Office.  Assistant United States Attorney Jennie L.M. Waering prosecuted the case for the United States.

LYNCHBURG, VIRGINIA – Eight individuals from the Lynchburg area have been charged with a variety of federal crimes related to an alleged cocaine distribution conspiracy that is accused of dispersing more than 500 grams of cocaine in the Lynchburg region between September 1998 and August 2012.

In an indictment returned July 24, 2014 by a Federal Grand Jury sitting in United States District Court for the Western District of Virginia in Roanoke, the following have been charged:

• Edward Dennis Jones, 38, of Lynchburg, Va., has been charged with one count of conspiracy to possess with the intent to distribute and to distribute cocaine, three counts of distributing cocaine and one count of illegal possession of a firearm.

• Bryce Lewis Carter, 29, of Lynchburg, Va., has been charged with one count of conspiracy to possess with the intent to distribute and to distribute cocaine and one count of distributing cocaine.

• Carlos Demetrice Jackson, 28, of Amherst, Va., has been charged with one count of conspiracy to possess with the intent to distribute and to distribute cocaine.

• Jeroid Montezs Matthews, 36, of Madison Heights, Va., has been charged with one count of conspiracy to possess with the intent to distribute and to distribute cocaine and two counts of distributing cocaine.

• Tony Sylvester Monroe, 40, of Evington, Va., has been charged with one count of conspiracy to possess with the intent to distribute and to distribute cocaine.

• Tyrone Edwin Lewis, 28, of Madison Heights, Va., has been charged with one count of conspiracy to possess with the intent to distribute and to distribute cocaine.

• Lateef Yusef Jones, 36, of Roanoke, Va., has been charged with one count of conspiracy to possess with the intent to distribute and to distribute cocaine and attempt to distribute cocaine.

• Randall Aaron Falwell, 28, of Lynchburg, Va., has been charged with one count of conspiracy to possess with the intent to distribute and to distribute cocaine.

The investigation of the case was conducted by Federal Bureau of Investigation and the Drug Enforcement Administration, the Central Virginia Drug Task Force, the Virginia State Police, the Amherst County Sheriff’s Office, the Lynchburg Police Department, the Campbell County Sheriff’s Office, the Appomattox County Sheriff’s Office and US Probation and Parole. Assistant United States Attorney Craig “Jake” Jacobsen will prosecute the case for the United States.

A Grand Jury Indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.

CHARLOTTESVILLE, VIRGINIA – In an indictment returned under seal on July 23, 2014, and unsealed today following the initial court appearances of the final defendants, a federal grand jury sitting in the United States District Court for the Western District of Virginia in Charlottesville has indicted nine individuals on a variety of charges related to a conspiracy to distribute heroin, crack cocaine and powder cocaine, as well as several charges related to the illegal possession and use of firearms.

The grand jury has charged the following:

• Solomon Anthony Francis, 25, of Culpeper, Va., with one count of conspiracy to distribute crack cocaine, one count of conspiracy to distribute heroin, one count of distributing crack cocaine, one count of distributing heroin and one count of distributing a controlled substance near a playground.
• James Alexander Clore, 23, of Culpeper, Va., with one count of conspiracy to distribute crack cocaine, one count of conspiracy to distribute heroin, four counts of distributing crack cocaine, four counts of distributing a controlled substance near a playground, two counts of attempting to distribute crack cocaine, one count of distributing heroin and two counts of possession of a firearm in furtherance of a drug trafficking crime.
• Renee Harris, 43, of Charlottesville, Va., with one count of conspiracy to distribute crack cocaine, one count of conspiracy to distribute heroin, one count of maintaining drug-involved premises near a playground and one count of distribution of a controlled substance near a playground.
• Marcus Lee Strother, 23, of Culpeper, Va., with one count of conspiracy to distribute crack cocaine, one count of conspiracy to distribute heroin and two counts of distributing a controlled substance near a playground.
• Richard A. Barracks, 32, of Esmont, Va., with one count of conspiracy to distribute crack cocaine, one count of conspiracy to distribute heroin, two counts of possession with the intent to distribute heroin, one count of distributing crack cocaine and one count of illegal possession of a firearm by a prohibited person.
• Jamel Jovan Jackson, 24, of Charlottesville, Va., with one count of conspiracy to distribute crack cocaine, one count of distributing crack cocaine and one count of possession of cocaine.
• Octavius Deshaw Eubanks, 20, of Charlottesville, Va., with one count of conspiracy to distribute crack cocaine.
• Richard Jerome Koonce, III, 41, of Charlottesville, with one count of conspiracy to distribute heroin, one count of possession of heroin and one count of possession of cocaine.
• Reg-juan Antonio Smith, 20, of Charlottesville, Va., with one count of conspiracy to distribute crack cocaine, one count of distribution of crack cocaine and one count of possession of stolen firearm.

According to the indictment, members of the group conspired to distribute more than 280 grams of crack cocaine and a measurable amount of heroin from January 2013 to the present. In addition, Renee Harris is accused of maintaining a drug house at 366 Riverside Avenue in Charlottesville, within 1,000 feet of Christ Community Church and Riverview Park where two public playgrounds are located.

The indictment also accuses several members of the conspiracy of illegally possessing and using firearms, including a stolen firearm.

The investigation of the case was conducted by the Jefferson Area Drug Enforcement Task Force, the Charlottesville Police Department, the Albemarle County Police Department, the Federal Bureau of Investigation, the Drug Enforcement Administration, the Culpeper Police Department and the Commonwealths Attorney’s Offices for the City of Charlottesville and the County of Albemarle. Special Assistant United States Attorneys Joseph Platania and Elliott Casey and Assistant United States Attorney Ronald Huber are prosecuting the case for the United States.

A Grand Jury Indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.

ROANOKE, VIRGINIA – A former investment advisor employed by the Roanoke, Va. branch of an unnamed global financial services firm, pled guilty yesterday afternoon in the United States District Court for the Western District of Virginia in Roanoke to wire fraud and tax evasion charges.

Donna J. Tucker, 58, of Roanoke, Va., waived her right to be indicted yesterday afternoon and pled guilty to a two-count Information charging her with one count of wire fraud and one count of tax evasion. In addition, Tucker’s plea agreement holds her accountable for restitution to victims including but not limited to up to $1 million.

“Ms. Tucker violated the trust of her clients and schemed to steal their hard-earned savings,” United States Attorney Timothy J. Heaphy said today. “Our office will continue to use all the resources available to investigate fraud and pursue restitution for its victims.”

According to information presented at yesterday’s guilty plea hearing by Special Assistant United States Attorney Drew Bradylyons, Tucker was an investment advisor in Roanoke from 2007 through April 2013. In August 2010, Tucker forged the signature of one of her clients, an elderly couple who held a joint account, in order to obtain a line of credit, supposedly for the clients, through her firm’s banking arm. Tucker took these actions without the knowledge or consent of the victim.

Approximately one year later, on August 4, 2011, Tucker caused to be transmitted a wire transfer of $295,000 from the victim’s account to her own account at a local credit union. These funds were used to benefit Tucker and her family. In addition, Tucker took steps to ensure the victims did not learn of the unauthorized transfer by instructing others at her firm to place the victims in an all-electronic delivery system that would send the victim’s account statements by email. Tucker also made false statements to the victims, other employees at the firm and created false documents in order to carry out the scheme.

Additionally, in calendar year 2011, Tucker reported to the Internal Revenue Service a taxable income of $125,333. The defendant has admitted to knowingly failing to report additional taxable income of at least $340,000, which resulted in an additional tax of at least $115,000 being owed to the United States.

At sentencing, Tucker faces a maximum possible penalty of up to 20 years in prison and/or a fine of up to $250,000 on the wire fraud charge and a maximum possible penalty of up to five years in prison and/or a fine of up to $250,000 on the tax evasion charge.

The investigation of the case was conducted by the United States Secret Service, the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigations and the Roanoke City Police Department. Assistant United States Attorney Daniel Bubar and Special Assistant United States Attorney Drew Bradylyons are prosecuting the case for the United States.

HARRISONBURG, VIRGINIA – The last of seven defendants convicted of conspiring to distribute large amounts of heroin in and around the Winchester, Va. region, was sentenced today in the United States District Court for the Western District of Virginia in Harrisonburg.

Christopher Haack, 29, of Winchester, Va., previously pled guilty to one count of conspiring to distribute and possess with the intent to distribute more than 100 grams but less than 400 grams of heroin and one count of possessing with the intent to distribute and distributing heroin. Today in District Court, Haack was sentenced to 24 months of imprisonment and five years of supervised release.

“The issue of heroin abuse has risen to epidemic levels in parts of Virginia,” United States Attorney Timothy J. Heaphy said today. “We will continue to work to reverse this disturbing trend through rigorous law enforcement as well as education, prevention and treatment programs. If we are going to make progress in the fight against this deadly drug, we must work together and approach the problem with a comprehensive strategy.”

Previously convicted and sentenced for their roles in the conspiracy were: Raymond Thomas Conrad, 26, of Strasburg, Va., 120 months; William Russell Carroll, II, 27, of Winchester, Va., 30 months; Dana James Hardy, 27, of Fredericksburg, Va., 84 months; Jennifer Elizabeth Breeden, 26, of Winchester, Va., 84 months; Brian Gary Pelczynski, 29, of Winchester, Va., 44 months; and Charles Lynwood Kline, 26, of Winchester, Va., 120 months.

According to information presented at previous hearings by Assistant United States Attorney Donald Wolthuis, this conspiracy consisted of a group of people who were working together to bring heroin from Baltimore, Md. to the Winchester, Va. area both for use and re-distribution. While the group had no formal organization, the central player in the conspiracy was Raymond Conrad. Heroin was purchased on the streets of Baltimore for $90-$120 per gram and later sold on the streets of Winchester for $50 per 1/10 of a gram.

The investigation revealed that during the life of the conspiracy, April 2010 to June 2013, some two kilograms of heroin were re-distributed, representing roughly 20,000 dosage units of heroin being put on the streets in Winchester, and the surrounding areas.

The investigation of the case was conducted by the Northwest Virginia Regional Drug Task Force and the Drug Enforcement Administration. The Northwest Virginia Regional Drug Task Force is comprised of nine participating jurisdictions, the counties of Frederick, Clarke, Shenandoah, Warren, and Page, the cities and towns of Winchester, Front Royal, and Strasburg, and the Virginia State Police. Assistant United States Attorney Donald Wolthuis prosecuted the case for the United States.  

ABINGDON, VIRGINIA – United States Attorney Timothy Heaphy and Virginia Attorney General Mark R. Herring announced that three individuals pled guilty in United States District Court for the Western District of Virginia in Abingdon, who previously had been arrested on warrants executed during a joint federal/state multi-agency operation in Virginia and Kentucky on May 3, 2014. United States District Judge James P. Jones accepted the guilty pleas of the following individuals:

Walter Dale Stumbo, 51, and his son, Joshua Dale Stumbo, 25, of Floyd County, Kentucky, (“Stumbos”) each pled guilty to one count of conspiring to (a) operate an illegal gambling enterprise and (b) illegally conduct cock fights; five counts of transporting fighting roosters across state lines; and five counts of transporting bird fighting knives across state lines. They pled guilty without the benefit of a plea agreement and face up to fifty-years in prison and a fine of up to $2.75 million. Joshua Dale Stumbo is scheduled to be sentenced on October 14, 2014. Walter Dale Stumbo is scheduled to be sentenced on October 9, 2014.

Jonathan Robinson, 33, of Wise County, Virginia, pled guilty to one count of conspiring to (a) operate an illegal gambling enterprise and (b) illegally conduct cock fights; one count of transporting fighting roosters across state lines; one count of transporting bird fighting knives across state lines; and one count of illegally distributing oxycodone. He pled guilty pursuant to a plea agreement and faces up to 35 years in prison and a fine of up to $1.75 million. He is scheduled to be sentenced on October 8, 2014.

Wesley Dean Robinson, 57, of Wise County, Virginia, and father of Jonathan Robinson previously pled guilty on June 16, 2014, to to one count of conspiring to (a) operate an illegal gambling enterprise and (b) illegally conduct cock fights; one count of transporting fighting roosters across state lines; one count of transporting bird fighting knives across state lines; and one count of illegally distributing oxycodone. He also pled guilty pursuant to a plea agreement and faces up to 15 years in prison and a fine of up to $750,000. He is scheduled to be sentenced on August 27, 2014.

United States Attorney Heaphy praised the law enforcement officers who conducted the undercover operation. “The cruel and inhumane practice of cockfighting has no place in a civilized society and is against federal law. The outstanding work of the state and federal agents who investigated this case made it possible to bring these operators of a major cockfighting pit to justice. We will vigorously investigate and prosecute individuals who attend, facilitate, or profit from the misery inflicted on animals during these barbaric fights.”

The successful prosecution was the result of a joint undercover operation by Virginia and federal authorities. Evidence proffered to the court today showed that the Stumbos, Robinsons and others conspired to have cock fights at the Big Blue Sportsmen’s Club “Big Blue” in McDowell, Kentucky, and organized a large scale and comprehensive cock fighting location at Big Blue, which included collecting “parking” fees from spectators, entrance fees from handlers and offering for sale such services as antibiotics for fighting birds, a full-service restaurant for spectators, and fighting gaffes for fighting cocks. The Robinsons transported birds and fighting gaffes from Wise County, Virginia, to Big Blue. On fight weekends at Big Blue, spectators and handlers traveled from Virginia, North Carolina, South Carolina, Michigan, Ohio, West Virginia, Maryland, Georgia and other states. Spectators and participants were only allowed entry if they held a valid membership card. Each person was charged a one-time fee of $20 for the membership card. In addition, each person was charged a $20 “parking fee.” Big Blue had approximately 5,000 members. Entrance fees for the fights at Big Blue typically were $250 per entry with approximately 40 to 80 total entries per derby. Investigators executed search warrants on May 3, 2013, the second day of a two day derby billed as the “World Championship.” Entrance fees for the “World Championship” were $2,500. Officers seized over $90,000 in cash at the Stumbos’ home. While fights were taking place and after spectators had arrived, Dale Stumbo caused a bulldozer to be placed on the entrance road to the pit. The bulldozer remained in place until the fights concluded.

The trial of Sonya Stumbo, 51, of Floyd County, Kentucky, is scheduled to begin August 4, 2014, in United States District Court in Abingdon. Ms. Stumbo is entitled to a fair trial and is presumed innocent until proven guilty beyond a reasonable doubt.

Assistant United States Attorney Randy Ramseyer and Special Assistant United States Attorney and Virginia Assistant Attorney General Michelle Welch are prosecuting case on behalf of the United States. The case is being investigated by the United States Department of Agriculture – Office of Inspector General, the Virginia Alcohol Beverage Control Bureau of Law Enforcement, and the Spotsylvania County Sheriff’s Office. In addition, the following agencies assisted in the arrests or related proceedings: Virginia Animal Fighting Task Force; Virginia State Police Tactical Team; Southwest Virginia Regional Task Force; Botetourt County Commonwealth’s Attorney’s Office; Wise County, Virginia, Sheriff’s Office and Commonwealth’s Attorney’s Office; Virginia State Veterinarian’s Office; United States Homeland Security Investigations; Kentucky State Police; the United States Attorney’s Office for the Eastern District of Kentucky; and the American Society for the Prevention of Cruelty to Animals.

CHARLOTTESVILLE, VIRGINIA – A Louisa County man who was convicted of kidnapping his estranged wife, transporting her to West Virginia and sexually assaulting her, was sentenced today in the United States District Court for the Western District of Virginia in Charlottesville.

Thomas Earl Faulls, 48, of Mineral, Va., was convicted by a jury earlier this year of one count of kidnapping, one count of interstate domestic violence and one count of possession of a firearm in furtherance of a crime of violence. Today in District Court, he was sentenced to 295 months in federal prison and 15 years of supervised release thereafter. Because the jury found that the kidnapping conviction involved a sex offense as well, Faulls was further ordered to register as a sex offender upon his release.

“Mr. Faulls carefully planned and executed a scheme to kidnap and assault his estranged wife,” United States Attorney Timothy J. Heaphy said today. “His actions were the culmination of a long-running pattern of abuse he visited upon the victim in this case. If not for the brave actions of the victim, this incident could have had a more tragic ending.”

According to evidence presented during the February 2014 jury trial, and other hearings, by Assistant United States Attorney Nancy S. Healey, Faulls and the victim were married for more than 20 years before the victim ended the marriage due to a long history of domestic abuse by the defendant. When the victim finally decided to leave her husband, Faulls engaged in escalating threatening and assaultive behavior against his ex-wife, including the display of a firearm, a claim of possession of a firearm, striking his ex-wife’s vehicle and making a threat or suggestion that he would kill his ex-wife.

On August 22, 2012, Faulls called his estranged wife and requested that she come to the home they formerly shared in Mineral, Va., and transport him to his truck, which he claimed was in the shop for repairs. The victim agreed and met him at the home later that evening. Unbeknownst to the victim, in preparation for the encounter Faulls had parked his truck behind the home and out-of-sight. The defendant had packed the truck with clothes and camping gear. He also disabled the front passenger door handle and window, thus making it impossible to escape through that door. Upon arrival, Faulls threatened to bind the victim and showed her zip ties that he previously fashioned into constraints. The defendant also brought thousands of dollars of cash and a shotgun. He also discarded the victim’s cell phone. Faulls also rebuffed various family members’ attempts to check on the well-being of the victim.

The evidence at trial showed that the victim was transported, against her will, to West Virginia, where she and the defendant stayed the night in a hotel. The following morning, against her will, the defendant engaged in sexual intercourse with the victim.

The victim ultimately made a decision to get the defendant drunk at a local restaurant, and while they were walking back to the hotel through a nearby neighborhood, the victim was able to run and solicit help from two good Samaritans who called 911 and drove her to find local law enforcement.

Following his arrest and prior to his trial, Faulls made several jailhouse phone calls during which he attempted to convince his mother to contact the victim in the case and persuade her to change her story and drop the charges against him.

The investigation of the case was conducted by the Federal Bureau of Investigation, the Louisa County Sheriff’s Office and the Greenbrier, West Virginia, Sheriff’s Office. Assistant United States Attorneys Nancy S. Healey and Robert Abendroth prosecuted the case for the United States.

WASHINGTON – A Crozet, Virginia man who previously pleaded guilty to child pornography charges was sentenced today in the U.S. District Court for the Western District of Virginia in Charlottesville for distribution and possession of child pornography.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Timothy J. Heaphy for the Western District of Virginia and Special Agent in Charge Adam S. Lee of the FBI’s Richmond Field Office made the announcement.

Michael G. Morris, who used the screen name “funshooter2006,” age 50, of Crozet, Virginia was indicted in 2013 and pleaded guilty on April 21, 2014 to two counts of distributing or receiving images of child pornography and one count of possessing child pornography. During the offenses charged, Morris was employed as an associate dean at the University of Virginia’s McIntyre School of Commerce. Morris was sentenced today before U.S. District Judge Norman K. Moon to 106 months in prison followed by 20 years of supervised release.

“Michael Morris was an associate dean at one of our country’s top universities, but instead of inspiring young minds academically, he was sharing and viewing pornographic images of young children,” said Assistant Attorney General Caldwell. “Today’s sentence demonstrates that those who trade and possess child pornography, no matter what positions of authority they may hold, will face the consequences for fueling an industry that causes immense damage to children.”

“Each and every time defendants like Mr. Morris download and share images depicting child pornography the children in those images suffer re-victimization,” U.S. Attorney Timothy J. Heaphy said today. “The Department will continue to use all available resources to seek out those who trade in this lurid material and bring them to justice.”

“The Richmond-based Child Exploitation Task Force will pursue and bring to justice anyone who produces, distributes, or possesses child pornography,” said Special Agent Lee. “The Morris case is an example of the FBI’s commitment to Virginia’s communities to keep our kids safe. I would like to thank the United States Attorney’s Office for achieving a positive conclusion to this case, the Charlottesville Police Department for their commitment to the Task Force, and the Task Force officer and FBI agent who led the case for their outstanding investigative work.”

According to evidence presented during the plea hearing and in court documents, a law enforcement officer, acting in an undercover capacity, successfully downloaded videos depicting minors engaged in sexually explicit conduct that Morris had made available to him on a publicly available file-sharing site on Jan. 6, 2012 and March 19, 2013. Morris also admitted that on Nov. 6, 2013, he possessed images or videos depicting prepubescent minors who the defendant knew had not attained 12 years of age. Investigators recovered computers and other items that contained child pornography during a search of Morris’s home.

The case was investigated by the FBI, with the assistance of the Charlottesville Police Department and the Department of Justice’s High Technology Investigative Unit. The case was prosecuted by Trial Attorney Herbrina Sanders of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Nancy Healey of the Western District of Virginia.

ABINGDON, VIRGINIA – A West Virginia woman, who was part of a Nigerian wire fraud scheme, was sentenced yesterday in the United States District Court for the Western District of Virginia in Abingdon.

Audrey Elaine Elrod, 47, of Bluefield, W.Va., was sentenced to imprisonment for a term of 52 months. Elrod previously pled guilty to an Information charging her with one count of structuring transactions to avoid reporting requirements and one count of conspiracy to commit wire fraud.

At sentencing, Elrod testified that an individual who identified himself as “Duke McGregor” befriended her on Facebook. She developed a romantic attachment with “Duke” through instant messaging. “Duke” eventually asked her to send money to his friend, “Sinclair,” in Nigeria.  Over time, “Duke” caused hundreds of thousands of dollars to be sent to accounts controlled by Elrod.  These amounts were unwittingly sent to Elrod by victims of the scheme. Elrod then structured the money out of her accounts, keeping the amounts below $10,000 to avoid the filing of Currency Transaction Reports with the IRS. She then sent the money by Western Union and MoneyGram to accounts in Nigeria. Elrod played an important role in the scheme because using her accounts disguised from the victims the fact that their money was ending up in Nigeria.  Between March 2012 and July 2013, Elrod received $ $446,927.59 in wire transfers into bank accounts she controlled. Between July 2012 and July 2013, Elrod structured $411,411.20 in cash transactions in an effort to hide her activity from the government.  

Elrod was arrested on federal charges on April 15, 2013.  After the Court released her on bond, Elrod continued to receive and send money as part of the fraud scheme.  She then absconded to Charlotte, North Carolina, and continued the scheme there.  On August 29, 2013, she was apprehended in Charlotte and has remained in federal custody ever since.

The investigation of the case was conducted by the Internal Revenue Service, Criminal Investigations, the United States Marshal Service, the Russell County Sheriff’s Office, the Bluefield Virginia Police Department, and the Bluefield West Virginia Police Department.  Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.

ROANOKE, VIRGINIA – The United States Attorney’s Office for the Western District of Virginia is saddened to hear the news of the passing of Federal District Court Judge James Turk and offers condolences to Judge Turk’s friends and family in this time of mourning.

“For forty years, Judge Turk worked tirelessly to ensure that the federal judicial system in this District was fair and unbiased,” United States Attorney Timothy J. Heaphy said today. “He brought a level of civility and common courtesy to the bench – qualities that endeared him to the lawyers in this office and all those who practiced before him. His tradition of shaking hands with defendants after their cases concluded was a perfect manifestation of his essential humanity and his ability to recognize the good in all people, regardless of circumstance. For that quality, above all others, Judge Turk will always be remembered.”