Western District of Virginia

ROANOKE, VIRGINIA –Assistant United States Attorneys Randy Ramseyer and Rick Mountcastle of the U.S. Attorney’s Office for the Western District of Virginia, were two of 154 Department of Justice employees nationwide to be recognized by Attorney General Eric Holder and Executive Office for U.S. Attorneys (EOUSA) Director H. Marshall Jarrett with a 2013 Director’s Award.  

United States Attorney Timothy J. Heaphy presented the Director’s Awards to members of the Abbott prosecution team at a ceremony yesterday in Roanoke.

“The prosecution of Abbott Labs resulted in a total settlement of $1.5 billon, the largest single-drug settlement of an off-label pharmaceutical fraud case in the history of the Department of Justice,” U.S. Attorney Heaphy said at today’s ceremony. “Significant federal cases like the Abbott matter help deter waste, fraud and abuse in the health care system.  AUSAs Ramseyer and Mountcastle and other lawyers in this office have historically tackled a number of these labor-intensive cases.   Time and again our AUSAs have proven to be the very best in the business in handling these complex cases.  We will try to perpetuate their success and continue our work in this important area.”

In May 2012, global health care company Abbott Laboratories Inc., pleaded guilty in United States District Court in Abingdon, Virginia, to unlawful promotion of the prescription drug Depakote for uses not approved as safe and effective by the Food and Drug Administration.   As part of its plea agreement with the Department of Justice, the company agreed to pay $1.5 billion to resolve criminal and civil liability arising from the company’s conduct.  Following a lengthy investigation led by AUSAs Ramseyer and Mountcastle, Abbott pleaded guilty to misbranding Depakote by promoting the drug to control agitation and aggression in elderly dementia patients and to treat schizophrenia when neither of these uses were supported by evidence or were FDA approved. During a ceremony today at the United States Attorney’s Office for the Western District of Virginia in Abingdon, U.S. Attorney Timothy J. Heaphy honored those on the prosecution team for their hard work and dedication to the lengthy successful federal investigation of Abbott Laboratories.

In letters to Ramseyer, Mountcastle, Attorney General Eric Holder told the awardees that they showed “exceptional efforts to promote the fair and impartial administration of justice for all Americans.”

“Each day the members of the US Attorneys’ community go to work for the citizens of this country with one goal in mind – to do everything they can to protect the rights of all Americans,” said EOUSA Director Jarrett.  “I am continually humbled by their resiliency, dedication, and unparalleled work ethic to accomplish this noble mission. Today’s awardees exemplify what it truly means to be a patriot and it is an honor to recognize them for their extraordinary service.”

U.S. Attorney Heaphy presented AUSA Randy Ramseyer, and members of Abbott prosecution team, with Department of Justice Achievement Award at a ceremony on November 13, 2013

ROANOKE, VIRGINIA – Officials announced this morning the formation of the Western District of Virginia Human Trafficking Task Force, a joint effort spearheaded by the United States Attorney’s Office for the Western District of Virginia and the Office of the Attorney General for the Commonwealth of Virginia.

The task force will operate across the entirety of the Western Judicial District with the goal of providing comprehensive support for law enforcement, training and victim services in relation to incidents of human trafficking.

“Human trafficking is an emerging issue in the Western District of Virginia, one that must be met with a comprehensive approach,” United States Attorney Timothy J. Heaphy said today. “The establishment of this task force will help law enforcement coordinate efforts to recognize and combat this problem.  The group will provide training to law enforcement and other organizations and facilitate investigations and prosecutions of traffickers.  It will also connect victims of human trafficking with local service providers.  As with other public safety challenges, success in this area requires that we augment our enforcement work with prevention and education.”

The Western District of Virginia Human Trafficking Task Force is broken into four distinct regions: Region One covers the Winchester, Staunton and Harrisonburg areas; Region Two covers the Charlottesville and Lynchburg areas, Region Three covers the area of Roanoke and Danville and Region Four covers the Abingdon and Big Stone Gap regions.

LYNCHBURG, VIRGINIA – A pair of men who were returning stolen or clearance items to local home improvement stores for profit pled guilty yesterday in the United States District Court for the Western District of Virginia in Lynchburg to wire fraud charges.

Desirique Darnell Rorie, 38, and Alphonzo Jermaine Christian, 35, both of Charlotte, North Carolina, each pled guilty yesterday to one count of conspiracy to commit wire fraud.

“These two individuals devised a scheme that defrauded a major home improvement store out of more than $400,000.” United States Attorney Timothy J. Heaphy said today. “Through the hard work of law enforcement professionals in multiple jurisdictions, they have been held accountable for their actions.”

Rorie and Christian admitted yesterday to conspiring to defraud Lowe’s Home Improvement stores in Virginia, North Carolina, South Carolina and Georgia. It was part of the scheme for merchandise to either be stolen or purchased on clearance from Lowe’s stores and later returned, at full price, in exchange for Lowe’s gift cards. The gift cards were later sold on the street for cash.

Rorie and Christian also admitted to using several co-conspirators, or “Boosters,” to steal or purchase products on clearance, from Lowe’s stores. They also hired “returners” to return items. These “boosters” and “returners” were paid cash for their services. Often times the “boosters” and “returners” were recruited from homeless shelters, soup kitchens, people off the street or family and friends.

At sentencing, both Rorie and Christian face a maximum possible penalty of up to five years in prison and/or a fine of up to $250,000.

The investigation of the case was conducted by the United States Secret Service, the Roanoke County Police Department and the Roanoke County Commonwealth Attorney’s Office. Assistant United States Attorney Charlene R. Day will prosecute the case for the United States.

ROANOKE, VIRGINIA -- A former medical doctor from Dublin, Va., who in February was convicted on 172 criminal counts of diverting pain medication, was sentenced today in the United States District Court for the Western District of Virginia in Roanoke.

Linda Sue Cheek, 64, of Dublin, Va., was indicted in May 2012 and charged with 86 counts of distributing scheduled controlled substances without holding a valid certificate of DEA Registration, 81 counts of using a DEA registration number issued to another person, five counts of using a DEA registration number which has been revoked or suspended and one count of maintaining a drug-involved premise.

Following an eight-day trial in February of this year in the United States District Court in Roanoke, a jury convicted the former doctor on 172 of the 173 counts leveled against her. Today in District Court, Cheek was sentenced to 33 months of federal incarceration. She was also ordered to pay a special assessment of $17,125.

            “Prescription drug abuse is an epidemic that is destroying lives and ruining too many Virginia communities,” United States Attorney Timothy J. Heaphy said today. “Despite losing her license to prescribe medicine, Dr. Cheek illegally fed the addiction of hundreds of patients while collecting their money.  The criminal prosecution of unethical medical professionals like Dr. Cheek is a central part of our comprehensive strategy to address the prescription drug crisis.   We must also continue to reduce demand and provide effective treatment if we are to have an impact on this public health emergency.”

Evidence presented at trial by Assistant United States Attorney Jennie L.M. Waering, determined that Cheek wrote prescriptions for controlled substances on her revoked DEA number and wrote prescriptions on a DEA number that belonged to another person.

The investigation of the case was conducted by the Drug Enforcement Administration, the Department of Health and Human Services and the Virginia State Police.  Assistant United States Attorney Jennie L.M. Waering and Virginia Assistant Attorney General and Special Assistant United States Attorney Vaso T. Doubles are prosecuting the case for the United States.

DANVILLE, VIRGINIA – Officials from local, state and federal law enforcement agencies announced today the culmination of an investigation that took nearly 50 drug dealers off the streets of Danville.

Operation Clean Sweep was the result of collaborative work by the Federal Bureau of Investigation, the Virginia State Police, the Danville Police Department, the Pittsylvania County Sheriff’s Office, the Danville Commonwealth’s Attorneys’ Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Department of Homeland Security, the Drug Enforcement Administration, Virginia Department of Corrections, the United States Office of Probation and Parole and the Danville City Sheriff’s Office.

During the course of the investigation, more than forty-nine individuals have been convicted in both state and federal court for distributing crack cocaine in and around the City of Danville. In addition, many of the defendants were also convicted on firearms charges.  

Overall, of the 49 individuals charged as part of the operation, 42 were prosecuted by state officials. Those charges included more than 64 counts of drug and firearms related offenses. Seven defendants were prosecuted by federal officials. The federal charges included more than 20 counts of drug and firearms related offenses. Throughout the course of the investigation more than 20 firearms were seized.

“Operation Clean Sweep successfully took nearly 50 drug dealers and violent criminals off the streets of Danville,” United States Attorney Timothy J. Heaphy said today. “This operation was a success due to the cooperation of local, state and federal authorities. We must continue to join together in the Danville region if we are going to truly make the city safer.  We must also augment our targeted enforcement work with support for effective crime prevention and offender reentry programs.  Only a comprehensive approach will truly achieve public safety in Danville and elsewhere.”

“The conclusion of this extensive investigation and the accumulative prison time of more than 68 years among the defendants should send a clear message that criminal narcotic and gang activity will not be tolerated in Danville or any other region of the Commonwealth,” said Captain G.W. Austin, Jr., Commander of the Virginia State Police Bureau of Criminal Investigation’s Salem Field Office. “Thanks to the collaborative efforts of local, state and federal law enforcement, we were able to eradicate a significant criminal network and validate our commitment to making our communities safer.”

“This intensive narcotics and gang enforcement project focused on addressing street-level narcotics activity and subsequent crimes of violence in the Danville area.  Arrests, seizures and the identification of gang members was the result of the hard work and dedication of the many local, state and federal law enforcement partners who dedicated resources and personnel towards this important task,” said Jeffrey C. Mazanec, Special Agent in Charge of the FBI’s Richmond Division.

“This successful law enforcement initiative between local, state and federal partners resulted in the prosecution of a number of armed narcotics traffickers and violent criminals.  This operation has had a positive effect on the Danville community and efforts to aggressively investigate armed violent offenders in the Danville area will continue,” said Carl Vasilko, Special Agent in Charge of the ATF Washington Field Division.

“This combined effort by local, state and federal law enforcement agencies was very effective, especially in addressing the street-level drug crime and violence involving members of one of Danville’s most violent gangs,” said Danville Police Chief Philip Broadfoot.  “The lengthy federal sentences given to several defendants for drug and firearm offenses should be a wake-up call to all gang members.”

“The Danville Commonwealth’s Attorney’s Office wishes to thank the dedicated work of all the law enforcement officers from the Virginia State Police, local police department, and all other agencies for providing the thousands of man hours necessary to make this operation a success,” Danville Commonwealth’s Attorney Michael Newman said today. “We are dedicated to continue to work with all local, state, and federal agencies to take and keep these violent criminals off the streets.”

The following defendants were prosecuted federally by the United States Attorney’s Office for the Western District of Virginia:

Parnell Moore, 24, of Danville, Va., convicted on multiple counts of distributing crack cocaine and multiple firearms offenses, sentenced to 420 months in federal prison.

Damien Courtney Fitzgerald, 27, of Danville, Va., convicted of distributing crack cocaine and a firearms offense, sentenced to 180 months in federal prison.

Demetrius Townes, 26, of Danville, Va., convicted of distributing crack cocaine and a firearms offense, sentenced to 106 months in federal prison.

Christopher Mayo, 27, of Danville, Va., convicted of a pair of firearms offenses, sentenced to 97 months in federal prison.

Ryan Neil Polk III, 27, of Danville, convicted of distributing crack cocaine, sentenced to 12 months and one day in federal prison.

Antonio Davis, 36, of Danville, Va., convicted of distributing crack cocaine, sentenced to 12 months and one day in federal prison.

Tyrell Keoni Saunders, 20, of Danville, Va., convicted of distributing crack cocaine and a firearms offense, sentenced to 240 months in federal prison.

Other agencies that assisted in the investigation include the United States Marshall’s Service, Virginia Probation and Parole, the North Carolina Highway Patrol and the Virginia Alcohol Beverage Commission.

ABINGDON, VIRGINIA – Brenda Gale Vance and Billy Leonard Vance of Rosedale, Virginia, pled guilty yesterday in United States District Court to conspiring to defraud the United States. The Vances admitted to conspiring to defraud the United States by concealing the fact that Billy Vance was working and earning income while receiving Social Security disability benefits.

At the guilty plea hearing, the Court was informed that from 2003 through 2012, Brenda Vance and Billy Vance were employed by the same company. However, to keep Billy Vance’s employment hidden from the Social Security Administration, the Vances’ employer kept Billy Vance’s employment off of the books and reported all of Billy Vance’s income to the government as having been earned by Brenda Vance. Accordingly, the Social Security Administration was not aware that Billy Vance was working and, as a result, continued to pay him Social Security disability benefits.

“Social Security provides needed support to Americans who are unable to work due to disability,” United States Attorney Timothy J. Heaphy said today. “Individuals who lie about disability and circumvent the Social Security system undercut the system’s efficiency. We will continue to seek out and prosecute individuals who falsely obtain Social Security benefits and ensure the system continues to serve the truly disabled.”

At sentencing, each defendant faces a sentence of up to five years in prison and a fine of up to $250,000.00. As part of the plea agreement, at the guilty plea hearing the Vances made full restitution to the Social Security Administration in the amount of $186,677.00. A sentencing hearing has been scheduled for December 11, 2013.

The investigation of the case was conducted by the Internal Revenue Service – Criminal Investigation and the Social Security Administration – Office of Inspector General. Assistant United States Attorney Randy Ramseyer is prosecuting the case for the United States.

ROANOKE, VIRGINIA – A Radford, Va., man who allegedly bilked investors out of more than $590,000 with promises of high interest returns on investments in his company, has been charged by a federal grand jury sitting in the United States District Court for the Western District of Virginia in Roanoke.

In an indictment returned today, the grand jury has charged Charles G. Shomo, 63, of Radford, with three counts of mail fraud, two counts of securities fraud and one count of money laundering.

Charges were filed following a thorough and cooperative investigation by the United States Postal Inspection Service, the Virginia State Corporation Commission, the Commonwealth’s Attorneys’ Offices for Giles, Smyth, Floyd and Wythe counties, along with the Sheriff’s Offices for Giles, Smyth, Floyd, Wythe and Pulaski counties.

According to the indictment, in 1999 Shomo founded P&G Enterprises LLC, a business originally established to purchase and set-up retail ATM and credit card processing systems throughout Virginia, West Virginia and North Carolina. P&G purportedly developed revenue from fees charged to users who obtained cash from P&G ATMs and from retailers that used P&G’s credit card processing service.

It is alleged that between December 2006 and June 2013 Shomo solicited investors under the representation that investor funds would be used to load ATM units and generally fund the operation of the ATM business. In return, Shomo offered investors promissory notes that typically matured over a one-year time period and paid an annualized interest rate of at least 5.95 percent. Unbeknownst to investors, Shomo was using investor funds for his personal expenses and to help fund an unrelated scooter business.

Additionally, Shomo is accused of using new investors’ funds to pay existing P&G note holders. The indictment claims that between March 2010 and June 2013, Shomo received in excess of $595,000 in proceeds from the sale of P&G promissory notes to investors.

Assistant United States Attorney C. Patrick Hogeboom III and Gauhar R. Naseem, Associate General Counsel-Financial Services, Office of General Counsel for the Virginia State Corporation Commission 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.

Almaz Nezirovic is Wanted in Bosnia for War Crimes Against Civilians

ROANOKE, VIRGINIA – A former guard at the Rabic camp in Derventa Municipality of Bosnia and Herzegovina, who allegedly committed abuses against Serb civilians being detained at the camp, has been certified for extradition to Bosnia by a federal judge sitting in the United States District Court for the Western District of Virginia in Roanoke.

Almaz Nezirovic, 54, of Roanoke, Va., is wanted in Bosnia to stand trial on the charge of War Crimes Against Civilians, allegations that arise out of actions claimed to have occurred between April and July 1992 during the Bosnian War. In April 1992, Nezirovic joined a paramilitary group, the HVO, and became a prison guard. Bosnian officials charge that while serving as a prison guard, Nezirovic committed war crimes by beating, humiliating and traumatizing unarmed civilian prisoners, causing severe personal injury.

            In July 2012, the United States, on behalf of the government of Bosnia, filed a complaint to extradite Nezirovic pursuant to an extradition treaty between the two countries that has been in place since 1901 and the United Nations Convention Against Torture.  After several hearings before United States Magistrate Judge Robert S. Ballou, yesterday the court found sufficient evidence to sustain the allegation and certified the extradition request to the Secretary of State.  Today’s ruling provides the legal basis for the Secretary of State to decide whether Nezirovic will be extradited to Bosnia, where war crimes charges are pending against him.

            “Almaz Nezirovic stands charged with horrific acts of torture by the government of Bosnia and Herzegovina,” United States Attorney Timothy J. Heaphy said today.  “Today’s ruling moves this matter one step closer to ultimate resolution in that country.  Mr. Nezirovic can now be subject to extradition and surrender to his home country, where he will stand trial for these offenses.”

The investigation of the case was conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations, the Criminal Division of the Department of Justice and the Office of International Affairs. United States Attorney Timothy J. Heaphy and Assistant United States Attorney Elizabeth Wright are prosecuting the case for the United States.

ABINGDON, VIRGINIA-- United States Attorney Timothy J. Heaphy announced today that 11 members of a crack cocaine distribution conspiracy have been sentenced to prison in the United States District Court for the Western District of Virginia in Abingdon.

On September 10, 2013, Ashanti Rhan Henry, 36, Knxoville, Tenn., was sentenced thirty years imprisonment following his earlier plea of guilty to one count of conspiracy to distribute 280 grams or more of cocaine base.

Ten members of the conspiracy have also previously been sentenced to terms of imprisonment:

Summer Shoulders, 21, of Bristol, Va., was sentenced to three years and one month imprisonment following her earlier plea of guilty to one count of possession with the intent to distribute 28 grams or more of cocaine base.

Marcus Stines, 21, of Bristol, Va., was sentenced to ten years imprisonment following his earlier plea of guilty to one count of conspiracy to distribute 280 grams or more of cocaine base.

Orrett Ordine Anderson, 37, of Mt. Vernon, N.Y., was sentenced to ten years imprisonment following his earlier plea of guilty to one count of conspiracy to distribute 280 grams or more of cocaine base.

Karen Jade Nicole Miller, 27, of Bristol, Va., was sentenced to five years imprisonment following her earlier plea of guilty to one count of conspiracy to distribute 280 grams or more of cocaine base.

Kedrick Jamel Harris, 26, of Bristol, Tenn., was sentenced to ten years imprisonment following his earlier plea of guilty to one count of conspiracy to distribute 280 grams or more of cocaine base.

Bredgette Dewan Shaw, 24, of Bristol, Va., was sentenced to three years and six months imprisonment following her earlier plea of guilty to one count of conspiracy to distribute 280 grams or more of cocaine base.

Jason Troy Pritchard, 36, of Bristol, Va., was sentenced to three years and six months imprisonment following his earlier plea of guilty to one count of conspiracy to distribute 280 grams or more of cocaine base.

James Carl Almaroad, 32, of Bristol, Va., was sentenced to three years and six months imprisonment following his plea of guilty to one count of conspiracy to distribute 280 grams or more of cocaine base.

Jamie Lynn Stover, 36, of Bristol, Va., was sentenced to three years imprisonment following her earlier plea of guilty to one count of conspiracy to distribute 280 grams or more of cocaine base.

Brittany Nicole Finch, 24, of Bristol, Va., was sentenced to three years and six months imprisonment following her earlier plea of guilty to one count of conspiracy to distribute 280 grams or more of cocaine base.

According to evidence presented at the guilty plea hearings by Assistant United States Attorney Zachary Lee, Ashanti Rhan Henry, a previously convicted drug trafficker, supplied the Bristol, Virginia and Tennessee areas with large quantities of crack cocaine from sources in Knoxville, Tennessee and New York which was then distributed by other members of the conspiracy. More than 30 controlled purchases of crack cocaine were made from Henry and other members of the conspiracy and five search warrants were executed during the multi-year investigation by local, state and federal law enforcement. On March 25, 2012, a search warrant was executed by law enforcement at an apartment in the Rice Terrace apartment complex in Bristol, Virginia and Henry, Shoulders, and Finch were found to be in possession of more than two ounces of crack cocaine.

The investigation of this case was conducted by the Bristol, Virginia Police Department, Washington County, Virginia Sheriff’s Office, Bristol, Tennessee Police Department, Virginia State Police, Sullivan County Sheriff’s Department, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the United States Marshals Service. The Washington County, Virginia Commonwealth’s Attorney’s Office, City of Bristol, Virginia Commonwealth’s Attorney’s Office, and the Sullivan County District Attorney’s Office also assisted in the investigation. Assistant United States Attorney’s Zachary T. Lee of the United States Attorney’s Office in Abingdon is prosecuting the case.

ABINGDON, VIRGINIA – United States Attorney Timothy J. Heaphy announced today that Ernest Julius Benko, 67, of Norton, Va., was sentenced yesterday in the United States District Court for the Western District of Virginia in Abingdon to 15 months incarceration  following his earlier guilty pleas to charges related to the obstruction of a federal criminal investigation.

Benko had earlier entered a plea of guilty to one count of obstruction of an official proceeding and one count of conspiracy to cause false statements and obstruct an official proceeding.

According to evidence presented at his guilty plea hearing by Assistant United States Attorney Zachary T. Lee, between 2008 and 2013, Benko was employed as a private investigator, videographer, notary public, and a court reporter for the Circuit Court of Wise County, Virginia and the United States Bankruptcy Court for the Western District of Virginia.

During this time, the Federal Bureau of Investigation and Virginia State Police had an ongoing investigation regarding attorney Robert Stuart Collins’ involvement in the illegal possession and distribution of controlled substances.  In May 2009, Benko was hired by Collins to record sworn statements from individuals cooperating in the FBI and Virginia State Police’s investigation in which the witnesses were told to falsely represent that Collins had no involvement in anything that was illegal or unethical.

These false statements were conducted in order to obstruct the criminal investigation into Collins. One of the witnesses, whose statement Benko recorded, was also told to falsely state that he had been threatened by an FBI agent in order to secure his cooperation in the FBI's investigation.  At the time of the taking of these false sworn statements Benko was aware that Collins had a drug problem and had been involved in the illegal activity that was the subject of the criminal investigation.  On September 13, 2012, Benko was interviewed by agents of the FBI and Virginia State Police.  Benko falsely stated that he had no knowledge of Collins being involved in illicit drug use.

The investigation of this case was conducted by the Virginia State Police, Federal Bureau of Investigation, Wise County Commonwealth’s Attorney’s Office, and the Southwest Virginia Drug Task Force.  Assistant United States Attorney Zachary T. Lee is prosecuting the case for the United States.

ABINGDON, VIRGINIA – United States Attorney Timothy J. Heaphy announced today that GM-Southwest Inc., and the company’s  CEO and former owner, have pled guilty to charges of racketeering and money laundering.

In a 57-count indictment filed April 8, 2013, John Paul Gutschlag Sr., 73, of Aubrey, Texas and GM-Southwest Inc., were charged with racketeering, wire fraud, mail fraud, money laundering and conspiracy charges. Today in District Court, Gutschlag pled guilty to one count of conspiracy to violate the Racketeering Act and two counts of money laundering by engaging in monetary transactions involving property derived from wire and mail fraud. In addition, GM-Southwest, through its corporate counsel, pled guilty to the same three charges.

“Mr. Gutschlag and GM-Southwest bilked Virginia Tech and thousands of the university’s students out of more than a million dollars,” United States Attorney Timothy J. Heaphy said today. “This conspiracy was sophisticated and wide-ranging and caused considerable harm to its victims.  In an age where health care costs are rising for each and every American, the Department of Justice will do everything possible to identify and prosecute waste, fraud and abuse in the health care delivery system.”

“Healthcare is a very important issue for students, parents and the public.  Mr. Gutschlag and GM-Southwest’s conspiracy negatively impacted thousands of students who depended on them to provide a very important service,” said Thomas J. Kelly, Special Agent in Charge of the IRS-Criminal Investigation, Washington DC Field Office. “IRS-CI will continue to work closely with the US Attorney’s Office to investigate corporate fraud and to hold corporations and executives accountable for complying with the law.”

According to evidence presented at today’s guilty plea hearing by Assistant United States Attorney Anthony Giorno, GM-Southwest was in the business of collecting health insurance premiums from students and universities, paying claims and providing reports related to the premium collection and claims payment both to the university and the carriers. The carriers, in turn, paid GM-Southwest a set commission or fee, typically a percentage of the gross premium collected. From August 2003 through the end of the 2010-2011 school year, GM-Southwest, under the direction of Gutschlag, provided student health insurance for Virginia Tech’s undergraduate and graduate students.

Today in District Court, the defendants admitted that beginning in 2005, Gutschlag, and others, devised a scheme to defraud colleges and universities by providing false and fraudulent claims reports and other misrepresentations designed to increase the income of GM-Southwest and to personally enrich Gutschlag. They did this by devising and utilizing a “claims modifier” to alter the claims numbers to produce an inflated dollar amount which overstated the claims paid and loss ratios, causing students and Virginia Tech to pay significantly higher premium costs.

Gutschlag and GM-Southwest admitted to overstating the amount of claims paid on behalf of Virginia Tech by over $1 million from 2003-2004 through the 2009-2010 academic years. The plea agreement provides for restitution to Virginia Tech and the students in the amount of $1.2 million and forfeiture of an additional $1.2 million to the government.    The defendants agreed that the restitution figure agreed to by the government would not prevent Virginia Tech or the students from seeking additional restitution through the civil courts.

In a related matter, in July 2013, James Lane, of Botetourt, Va., entered into a deferred prosecution agreement with the United States for his role in the fraud. He has paid $250,000 to Virginia Tech as restitution for his conduct.  This is in addition to the restitution to be paid the Gutschlag and GMS.   Lane also pled guilty to one-count of filing a false tax return for tax year 2008 and one count of filing a false tax return for tax year 2009.

In addition, Carolyn Beck, Gutschlag Sr.’s administrative assistant, has previously pled guilty to one count of conspiracy to commit wire fraud, mail fraud and money laundering. Beck had access to the false premiums and claims data on the GM-Southwest computer system at the company’s office in Texas. At Gutschlag’s direction, she provided false claims reports to Lane, who in turn provided the false reports to Virginia Tech.

At sentencing, Gutschlag faces a maximum possible penalty of up to 20 years in prison on the racketeering charge and up to 10 years in prison on each of the money laundering charges.

The investigation of the case is being conducted by SA Phillip Barnett of the Internal Revenue Service Criminal Investigation.  Assistant United States Attorneys Anthony Giorno and Randy Ramseyer prosecuted the case for the United States.

DANVILLE, VIRGINIA – An 18-year-old Bassett man, who previously pled guilty to breaking into a Henry County Post Office and causing almost $20,000 worth of damage, was sentenced last week in the United States District Court for the Western District of Virginia in Danville.

Matthew Fitzgerald, 18, of Bassett, Va., previously pled guilty to one-count of willfully committing a depredation against property of the United States, Specifically the Fieldale, Va., Post Office. Last Friday in District Court, the defendant was sentenced to six months in prison, three years of supervised release and was ordered to pay $19,309 in restitution.

According to evidence presented at previous hearings by Assistant United States Attorney Charlene R. Day, Fitzgerald admitted that on April 18, 2013 he broke into the Fieldale Post Office located in Henry County and damaged property inside.

Fitzgerald admitted to breaking windows, glass, damaging computers, discharging a fire extinguisher, throwing more than 1,000 keys on the floor and breaking florescent light tubes. In all, Fitzgerald caused $19,309 in damages.

The investigation of the case was conducted by the United States Postal Inspection Service and the Henry County Sheriff’s Office. Assistant United States Attorney Charlene Day is prosecuting the case for the United States.

ABINGDON, VIRGINIA – Bryant Alexander Hairston, 20, of Martinsville, Virginia, was sentenced today, in the United States District Court for the Western District of Virginia, in Abingdon, to the five days of jail time already served and supervised release for a term of two years for his conviction of one count of making false statements in a matter within the jurisdiction of the Executive Branch of the United States and one count of making false statements under oath. United States District Judge James P. Jones also ordered that Hairston make restitution in the amount of $4,010.00 to reimburse the various law enforcement and counseling agencies for their costs in responding to the 911 call and dealing with traumatized students.

On January 23, 2013, Hairston told a 911 dispatcher there was a gunman on the campus of the University of Virginia’s College at Wise (“UVa-Wise”) who was trying to get into one of the residence halls. Hairston told the dispatcher that the man had a pistol. The campus was placed on lock down and law enforcement officers from various agencies responded to the scene. Armed officers went door to door through the residence hall searching for the alleged gunman. While the search was ongoing, Hairston made statements indicating he was happy that he had saved the lives of his fellow students. Officers became suspicious of Hairston and questioned him. After some time, Hairston admitted he had made up the story about a man having a gun because he wanted to look like a hero.

“When Mr. Hairston falsely claimed to have seen a gunman on the campus of UVa-Wise, he instigated an immediate emergency response and caused significant stress among his fellow students and their families,” United States Attorney Timothy J. Heaphy said today. “Upon hearing of his despicable lie, students barricaded themselves in rooms and parents worried their children would become victims of another mass shooting. Hairston created a highly charged and dangerous situation for law enforcement and others. His false report reignited the fear that lingers in our district, which has experienced the awful reality of campus violence in our recent past. Our aggressive pursuit of this case demonstrates our desire to hold accountable those who make false reports to law enforcement. An act like this, which in years past may have been viewed as a harmless hoax, is now extremely serious and warrants a felony conviction.”

The government’s investigation uncovered evidence that another resident of Hairston’s residence hall was at the door on the evening of January 23, wearing a ski mask because of the cold weather, and had asked Hairston to let him in. Hairston did not open the door and raced upstairs. At today’s sentencing hearing, Hairston testified that after running upstairs he falsely told a fellow student that a man with a gun was trying to get into the building and then repeated the lie to the 911 operator and various responding law enforcement officers. Hairston admitted he never saw a gun. At today’s hearing, Hairston expressed remorse for his conduct, stating “I know it was wrong to say that there was a gun when there was not and I am very sorry I scared so many people at my college and caused so much trouble for the police.”

Hairston previously pled guilty to these charges on May 31, 2013, pursuant to a plea agreement. Pursuant to the plea agreement, the government agreed to recommend the sentence that the Court imposed today.

The investigation of the case was conducted by the police departments of UVa-Wise, Pound, and Wise; the Wise County Sheriff’s Office; the Virginia State Police; and the Bristol Office of the Federal Bureau of Investigation. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.

CHARLOTTESVILLE, VIRGINIA – The three Charlottesville residents accused of producing tens of thousands of fraudulent driver’s licenses and shipping them across the country pled guilty this morning in the United States District Court for the Western District of Virginia in Charlottesville.

Alan McNeil Jones, 31, Kelly Erin McPhee, 31, and Mark Guerin Bernardo, 34, all of Charlottesville, Va., waived their rights to be indicted and pled guilty this morning to a two-count Information. The three defendants each pled guilty to one count of conspiracy to commit identification document fraud and one count of aggravated identity theft.

“These three defendants developed a sophisticated scheme to produce and sell high-quality false identification documents throughout the nation,” United States Attorney Timothy J. Heaphy said today. “Their criminal enterprise was tremendously lucrative, generating profits of more than $3 million over several years. By producing and distributing these fraudulent identification documents, Mr. Jones and his co-conspirators endangered national security. Law enforcement personnel involved in this case will take every available step to recover these counterfeit driver’s licenses and ensure that they cannot be used to facilitate additional criminal activity.”

“The defendants in this case primarily used the U.S. Mail to facilitate their criminal scheme. Postal Inspectors were able to quickly identify the scheme and worked aggressively with our partnering law enforcement agencies and the U.S. Attorney's Office to locate the subjects involved and ultimately dismantle their criminal enterprise. Through cases like these, the Postal Inspection Service upholds it's long standing mission of protecting the public and preventing criminal misuse of the U.S. Mail,” said Keith A. Fixel, Inspector in Charge, U.S. Postal Inspection Service - Charlotte Division.

“Regardless of the reasons for seeking fraudulent documents, U.S. Immigrations and Customs Enforcement (ICE) Homeland Security Investigations (HSI) strives to detect, deter and disrupt individuals and organizations that present an active threat to national security or public safety, and who seek to undermine the integrity of the laws and regulations of the United States,” said Scot Rittenberg, Acting Special Agent in Charge, Washington. D.C. Field Office.

Today in District Court, Jones, McPhee and Bernardo admitted to conspiring to created high-quality fraudulent driver’s licenses out of the home they shared on Rugby Road in Charlottesville, Va. The conspiracy, which began in 2010 and operated under the name Novel Design, produced and sold more than 25,000 fraudulent driver’s licenses, primarily to college students, throughout the nation.

As part of the scheme, Jones paid commissions to students at the University of Virginia, and elsewhere, to refer his service to other students interested in obtaining fraudulent driver’s licenses. He also outsourced some of the manufacturing work to companies in Bangladesh and China.

During the entire period of time in which Novel Design was in operation, Jones, McPhee and Bernardo produced approximately 25,000 fraudulent driver’s licenses for customers. They charged anywhere from $75 to $125 per fake license and the three obtained more than $3 million from customers. To date, over $2.7 million in assets have been seized by law enforcement.

At the height of the conspiracy, Jones, McPhee and Bernardo, were able to create fraudulent driver’s licenses for the states of Arizona, Connecticut, Florida, Georgia, Illinois, Louisiana, Maryland, Maine, Mississippi, Montana, New Jersey, Pennsylvania, Ohio, Rhode Island, South Carolina, Tennessee and Virginia.

At sentencing, each defendant faces a maximum possible penalty of up to 15 years in federal prison on the conspiracy charge and a mandatory additional two-year sentence on the aggravated identify theft charge.

The investigation of the case was conducted by the Department of Homeland Security Investigations, the United States Postal Inspection Service and the Virginia State Police. Assisting in the investigation was the Homeland Security Investigations Laboratory, the United States Postal Inspection Service Laboratory, US Customs and Border Protection, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Albemarle County Police Department, The Charlottesville Police Department, the State Attorney General’s Office for the Commonwealth of Virginia, the United States Secret Service and the Federal Bureau of Investigation, the College of Charleston, the Texas Highway Patrol and the University of Virginia Police. United States Attorney Timothy J. Heaphy and Assistant United States Attorney Ronald Huber are prosecuting the case for the United States.

DANVILLE, VIRGINIA – A Danville man who previously pled guilty to the illegal sale of a firearm to a convicted felon at a local flea market, was sentenced this afternoon in the United States District Court for the Western District of Virginia in Danville.

James Calvin Wilson, 67, of Danville, Va., previously pled guilty to one count of selling a firearm to a person who had previously been convicted of a felony. This afternoon in District Court, Wilson was sentenced to 18 months in federal prison.

“Keeping guns out of the hands of convicted felons is a crucial part of protecting our communities,” United States Attorney Timothy J. Heaphy said today. “This defendant endangered public safety by making a gun available to an individual prohibited by law from owning a firearm. We will continue to do all we can to keep guns out of the hands of convicted felons while also protecting the second amendment rights of law-abiding gun owners.”

Previously, Wilson admitted that in August 2012 he first approached undercover officers with the Pittsylvania County Sheriff’s Office and attempted to sell handguns and a shotgun out of the trunk of his car. Over the course of several weeks, undercover officers purchased 12 guns from Wilson at his home in Danville.

In October 2012, a confidential informant, who is a convicted felon and working with law enforcement, approached Wilson at a flea market regarding the purchase of a 9mm semi-automatic pistol. The confidential informant told Wilson he could not purchase a gun from a gun store because he was a convicted felon. Upon hearing this, Wilson raised his hand to the informant and told him “don’t tell me that.” Wilson proceeded to sell the firearm to the informant for $500.

The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pittsylvania County Sheriff’s Office and the Campbell County Sheriff’s Office. Assistant United States Attorney Daniel Bubar is prosecuting the case for the United States.

HARRISONBURG, VIRGINIA – A Winchester man who has admitted to enticing 19 minors into engaged in sexually explicit conduct via web cams, pled guilty yesterday afternoon in the United States District Court for the Western District of Virginia in Harrisonburg.

Brian Patrick Aronhalt, 32, of Winchester, Va., pled guilty to one count of conspiracy to produce child pornography, one count of enticing minors to engage in sexually explicit conduct, four counts of producing child pornography, one count of possession of child pornography and one count of distributing child pornography.

“Mr. Aronhalt admitted that he used deception to repeatedly abuse children,” United States Attorney Timothy J. Heaphy said today. “His case serves as a grim reminder for parents to monitor what their children are doing online. Those of us who work in law enforcement will continue to pursue and prosecute predators like Mr. Aronhalt. We won’t be successful, however, unless parents acknowledge the threat and take steps to help their children stay safe online.”

Aronhalt admitted yesterday to posing as a minor female online and enticing 19 minor boys to masturbate for him via webcam. The defendant learned from others online how to use a sexually explicit video of a female to appear as a live webcast to the minor boys. Using the pre-recorded video, Aronhalt enticed the boys to masturbate for him via webcam and recorded the sexually explicit conduct.

In addition, during the execution of a search warrant, agents from the Federal Bureau of Investigation and the DC Internet Crimes Against Children Task Force found thousands of images depicting child pornography on Aronhalt’s computers.

At sentencing, the defendant faces a mandatory minimum sentenced of 15 years in Federal prison and a maximum possible penalty of life in prison. He also faces a potential lifetime of supervised release.

The investigation of the case was conducted by the Federal Bureau of Investigation, the DC Internet Crimes Against Children Task Force and the Child Exploitation and Obscenity Section of the Department of Justice. Assistant United States Attorney Nancy Healey will prosecute the case for the United States along with Trial Attorney Sarah Chang, U.S. Department of Justice, Child Exploitation and Obscenity Section (CEOS). CEOS’s High Technology Investigative Unit (HTIU) conducted computer forensic analysis for the case.

ABINGDON, VIRGINIA – In May 2012, global health care company Abbott Laboratories Inc., pleaded guilty in United States District Court in Abingdon to unlawful promotion of the prescription drug Depakote for uses not approved as safe and effective by the Food and Drug Administration. As part of its plea agreement with the Department of Justice, the company agreed to pay $1.5 billion to resolve criminal and civil liability arising from the company’s conduct.

Following a lengthy investigation led by AUSAs in the Western District of Virginia, Abbott pleaded guilty to misbranding Depakote by promoting the drug to control agitation and aggression in elderly dementia patients and to treat schizophrenia when neither of these uses was FDA approved. The company is currently on probation for this conduct and is implementing a series of changes designed to prevent off label marketing in the future.

“The federal prosecution of Abbott Labs resulted in a total settlement of $1.5 billon, the largest single-drug settlement of an off-label pharmaceutical fraud case in Department history,” U.S. Attorney Heaphy said today. “Substantial cases like this one help deter waste fraud and abuse in our health care system. The Assistant United States Attorneys in the Western District of Virginia have a long, distinguished track record of successfully bringing cases against drug manufacturers. We will continue to prioritize health care fraud cases and ensure that federal health care dollars are responsibly utilized.

HARRISONBURG, VIRGINIA – The final member of a conspiracy that purchased untaxed cigarettes in Virginia and transported them throughout the United States was sentenced this week in the United States District Court for the Western District of Virginia.

Anjay Patel, 37, of South Carolina, and others, were indicted in November 2011 on a variety of conspiracy, trafficking and money laundering charges. In February 2013, Patel pled guilty to conspiracy to distribute contraband cigarettes, conspiracy to commit money laundering, trafficking in contraband cigarettes, promotional money laundering, concealment money laundering and engaging in monetary transactions involving more than $10,000 in criminal proceeds. Wednesday in District Court, Patel was sentenced to 84 months incarceration, 2 years of supervised released, and ordered to forfeit substantial assets, including cash, real estate, vehicles, bank accounts, and personal property.

“Anjay Patel and his co-conspirators bought and sold millions of dollars’ worth of contraband cigarettes in an attempt to avoid paying taxes,” United States Attorney Timothy J. Heaphy said today. “In this sophisticated criminal operation, these defendants purchased untaxed cigarettes in Virginia and transported them to New York and other northeastern states for resale. In so doing, they deprived those states of substantial tax revenue. The extremely productive and skilled work of the ATF and other agents who pursued this case ensured that much of this tax money will be repaid and the defendants brought to justice.”

CHARLOTTESVILLE, VIRGINIA – A 61-year-old former employee of the Library of Congress pled guilty this morning in the United States District Court for the Western District of Virginia in Charlottesville to charges involving stalking and identification fraud.

Kenneth Edward Kuban, 61, of Reva., Va., was indicted in April 2013 on a variety of stalking-related charges. This morning in District Court, Kuban pled guilty to one count of stalking in violation of a protective order, one count of identification fraud and one count of violating a protective order within the special maritime and territorial jurisdiction of the United States.

“Mr. Kuban used his government computer and the internet to harass and intimidate the victim in this case,” United States Attorney Timothy J. Heaphy said today. “While his actions caused the victim months of emotional trauma, they could have resulted in much more serious harm.  Fortunately, law enforcement acted swiftly and put an end to Mr. Kuban’s horrific behavior before it resulted in violence.  This case shows both the dangerous potential of web portals like the one Mr. Kuban used to stalk his victim, and our commitment to vigorously pursue actual or threatened violence against women in whatever form it takes.”

Today in court, Kuban admitted to posing online as the victim and using the website Craigslist to post advertisements and lure third parties to the victim’s home in anticipation of having direct contact with the victim for the purpose of having sexual encounters. The defendant admitted to posting more than 165 advertisements on the website between January and March of 2013. Many of these advertisements contained the victim’s address and/or photograph. Fifty-four of those advertisements were posted from Kuban’s personal computer while 111 were posted from his government-issued computer at the Library of Congress, his place of employment.

Between January and March 2013 more than 100 men appeared at or around the victim’s home seeking sexual encounters with her based upon the ads posted by Kuban. In one instance, a man arrived at the victim’s home with a crowbar in order to pry open an electronic gate the victim had installed to protect herself.  The man brought the crowbar at the urging of Kuban, posing as the victim. The threat to the victim’s safety became so great that local law enforcement felt it necessary to post deputies at her home to deter trespassing and harassment.

At a sentencing hearing scheduled for November 15, 2013, Kuban faces a maximum possible penalty of up to 15 years in prison.

The investigation of the case was conducted by the Library of Congress-Office of the Inspector General.  United States Attorney Timothy J. Heaphy and Assistant United States Attorney Ronald Huber are prosecuting the case for the United States.

ABINGDON, VIRGINIA – United States Attorney Timothy J. Heaphy announced today that Samuel Robert Conrad, III, 51, and Lynn Spencer Conrad, 53, both of Max Meadows, Va., were sentenced yesterday in the United States District Court for the Western District of Virginia in Abingdon to serve terms of imprisonment for violating federal firearms laws.

Samuel Conrad was ordered to serve 96 months imprisonment for one count of possession of a firearm by a convicted felon.  Lynn Conrad was ordered to serve six months imprisonment for providing a firearm to a convicted felon.          

According to evidence presented at the guilty plea hearings by Assistant United States Attorney Zachary T. Lee, in September 2008, investigators with the Wythe County Sheriff’s Office executed a search warrant at the Conrad’s residence in Max Meadows during an unrelated investigation.  Officers found a number of firearms at the residence which were seized based upon Samuel Conrad’s status as a convicted felon.  Through their investigation, law enforcement determined that these firearms had been provided to Samuel Conrad by his wife Lynn Conrad.    

The investigation of this case was conducted by the Wythe County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.  Assistant United States Attorney Zachary T. Lee of the United States Attorney’s Office in Abingdon prosecuted the case.

ROANOKE, VIRGINIA -- A police officer employed by the Rocky Mount Police Department and another man have been indicted by a Federal grand jury sitting in the United States District Court for the Western District of Virginia in Roanoke on charges related to the straw purchasing of firearms.

Following an investigation headed by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the grand jury has charged David Carson Haskins, age 57, with 18 counts of making false statements to a license firearms dealer in relation to the purchase of a firearm. In addition, Haskins, along with James Marion Slate, age 25, of Rocky Mount, Va., have been charged with one count of conspiracy to make straw purchases of firearms.

Each defendant faces a maximum possible penalty of up to five years in prison on the conspiracy charge. In addition, Haskins faces a maximum possible penalty of up to 10 years in prison on 10 counts of making a false statement to a licensed firearms dealer and a maximum possibly penalty of up to five years on the remaining eight counts of making false statements.

The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Donald Wolthuis 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.

WASHINGTON – John Stuart Dowell, 47, of Santa Cruz, Calif., was sentenced late yesterday in Harrisonburg, Va., to serve 960 months in prison, followed by a lifetime of supervised release, for producing child pornography.

The sentence was announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the Western District of Virginia Timothy J. Heaphy.

Dowell was sentenced by U.S. District Judge Michael Urbanski in the Western District of Virginia.

In October 2012, Dowell pleaded guilty to 12 counts of using a minor to engage in sexually explicit conduct for the purpose of producing visual depictions of that conduct and one count of transportation of child pornography.

According to a statement of facts entered into the record by the government and agreed to by the defendant, Dowell admitted that in late 2010 and early 2011 he was staying at a residence in Frederick County, Va. While staying at the home, Dowell repeatedly sexually abused a 3-year-old girl and filmed the abuse. A computer forensic examination further revealed that Dowell, in separate incidents, produced two videos of a 5-year-old female engaging in sexually explicit conduct. According to testimony provided at the sentencing hearing, Dowell also had a collection exceeding 70,000 images and videos of other child pornography and child erotica.

The investigation of the case was conducted by the Northern Virginia-District of Columbia Internet Crimes Against Children Task Force, with assistance from the FBI, the Department of Homeland Security’s Immigration and Customs Enforcement, and the San Jose, Calif., Police Department, as well as Danish law enforcement officers and Interpol. The High Tech Investigative Unit from the Department of Justice’s Child Exploitation and Obscenity Section (CEOS) conducted the forensic examination. Assistant U.S. Attorney Nancy S. Healey and CEOS Trial Attorney Darcy Katzin are prosecuting the case for the United States.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

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ABINGDON, VIRGINIA -- - United States Attorney Timothy J. Heaphy announced today that the former Chief of Police in Marion, Virginia pled guilty today in the United States District Court for the Western District of Virginia in Abingdon to a charge involving the distribution of methamphetamine, cocaine, oxycodone and hydrocodone.

Michael Dean Roberts, a.k.a., “Fireball”, age 54, of Saltville, Va., entered a plea of guilty to a one-count Information charging conspiracy to distribute methamphetamine, cocaine, oxycodone and hydrocodone. Roberts faces a potential maximum sentence of up to 20 years imprisonment and a potential fine of $1,000,000.

According to evidence presented at the guilty plea hearing by Assistant United States Attorney Zachary Lee, Roberts was involved in the distribution of cocaine, methamphetamine, oxycodone and hydrocodone between 2006 and June 2013, all while employed as the Chief of Police of the Marion, Virginia Police Department. As part of a joint investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, the Drug Enforcement Administration, the Virginia State Police, and the Washington County Sheriff’s Department, law enforcement officers utilized a confidential informant to obtain hydrocodone pills from Roberts on three separate occasions in May and June of 2013.

The investigation determined that Roberts was involved in the distribution of at least 7,331 hydrocodone pills, 365 grams of methamphetamine, and small amounts of cocaine and oxycodone. The investigation further determined that Roberts used his position as chief of police to obtain some of these drugs from the Marion Police Department evidence room.

Sentencing has been set for October 9, 2013 in the United States District Court for the Western District of Virginia in Abingdon.

The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, the Virginia State Police, the Drug Enforcement Administration, and the Washington County Sheriff’s Department. Assistant United States Attorney Zachary Lee is prosecuting the case for the United States.

LYNCHBURG, VIRGINIA -- A man who was a fugitive from justice for more than a year was sentenced this morning in the United States District Court for the Western District of Virginia in Lynchburg on a variety of fraud charges.

James Gordon Fields, 47, whose last known address is unknown, pled guilty earlier this year to two counts of bank fraud, one count of making a false statement in relation to a loan, one count of aggravated identity theft, one count of making a false statement under oath in relation to a bankruptcy case and one count of engaging in a monetary transaction in criminally derived property of a value greater than $10,000.

This morning, Fields was sentenced to 10 years in federal prison.

“Mr. Fields repeatedly committed brazen acts of fraud, then tried to flee when apprehended,” United States Attorney Timothy J. Heaphy said today. “He was ultimately brought to justice and held accountable for the tremendous financial loss he caused during his criminal scheme. This office will remain vigilant in our investigation and prosecution of those who commit financial fraud.”

Fields previously admitted to submitting forged signatures on guarantees for loans, submitting fraudulent documentation showing he was the beneficiary of a $77 million trust, which in fact did not exist, and lying about all of the above during his bankruptcy proceedings.

The defendant also forged documents in September 2007 and March 2008 that caused Wachovia bank to issue more than $14 million in fraudulent loans. In addition, he admitted that at the time of his arrest, he removed a screen from a second story window and attempted to escape capture by United States Marshals. He was eventually apprehended two houses away.

The investigation of the case was conducted by the United States Postal Inspection Service, the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation and the United States Marshal’s Service. Assistant United States Attorney Randy Ramseyer is prosecuting the case for the United States.

ABINDGON, VIRGINIA -- The Police Chief of the Marion, Va., Police Department was arrested this morning on federal charges related to the distribution of a controlled substance.

Michael Dean Roberts, a.k.a. “Fireball,” age 54, of Saltville, Va., was arrested via a federal criminal complaint earlier this morning and charged with one count of distribution of a controlled substance.

According to a probable cause affidavit filed with the United States District Court for the Western District of Virginia in Abingdon, Roberts is charged with distributing the name brand prescription pain killer Lortab, which contained the schedule III narcotic hydrocodone.

The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Drug Enforcement Administration, the Virginia State Police and the Washington County Sheriff’s Office. Assistant United States Attorney Zachary Lee will prosecute the case for the United States.

A criminal complaint 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 -- - United States Attorney Timothy J. Heaphy announced today that Ernest Julius Benko pled guilty in the United States District Court for the Western District of Virginia in Abingdon to charges related to the obstruction of a federal criminal investigation..

Ernest Julius Benko, 67, of Norton, Va., entered a plea of guilty to one count of obstruction of an official proceeding and one count of conspiracy to cause false statements and obstruct an official proceeding. Benko faces a potential maximum sentence of up to 25 years imprisonment and a potential fine of $500,000.

"Mr. Benko deliberately impeded a federal investigation,” United States Attorney Timothy J. Heaphy said today. “Lying to federal investigators is a serious crime and will be vigorously pursued by this United States Attorney’s Office.”

According to evidence presented at the guilty plea hearing by Assistant United States Attorney Zachary T. Lee, between 2008 and 2013, Ernest Julius Benko was employed as a private investigator, videographer, notary public, and a court reporter for the Circuit Court of Wise County, Virginia and the United States Bankruptcy Court for the Western District of Virginia.

During this time, the Federal Bureau of Investigation and Virginia State Police had an ongoing investigation regarding attorney Robert Stuart Collins’ involvement in the illegal possession and distribution of controlled substances. In May 2009, Benko was hired by Collins to record sworn statements from individuals cooperating in the FBI and Virginia State Police’s investigation in which the witnesses were told to falsely represent that Collins had no involvement in anything that was illegal or unethical.

These false statements were conducted in order to obstruct the criminal investigation into Collins. One of the witnesses, whose statement Benko recorded, also was told to falsely state that he had been threatened by an FBI agent in order to secure his cooperation in the FBI's investigation. At the time of the taking of these false sworn statements, Benko was aware that Collins had a drug problem and had been involved in illegal activity that was the subject of the FBI and Virginia State Police’s criminal investigation. On September 13, 2012, Benko was interviewed by agents of the FBI and Virginia State Police. Benko falsely stated that he had no knowledge of Collins being involved in illicit drug use.

Sentencing has been set for September 10, 2013, at 1:30 p.m. in the United States District Court for the Western District of Virginia in Abingdon.

The investigation of this case was conducted by the Virginia State Police, Federal Bureau of Investigation, Wise County Commonwealth’s Attorney’s Office, and the Southwest Virginia Drug Task Force. Assistant United States Attorney Zachary T. Lee is prosecuting the case for the United States.

LYNCHBURG, VIRGINIA -- A pair of North Carolina men pled guilty this morning in the United States District Court for the Western District of Virginia in Lynchburg to charges that they stole checks from mailboxes throughout Central Virginia, altered the checks and cashed them for their personal use.

Getony Barnette, 28, of Charlotte, N.C. and Jeremy Brown, 29, also of Charlotte, N.C., both pled guilty this morning. Brown pled guilty to one count of conspiracy to commit bank fraud and identity fraud. Barnette pled guilty to one count of conspiracy to commit bank fraud, mail theft and identity fraud and one count of aggravated identity fraud.

“These defendants stole checks sent through the mail, altered them, then attempted to cash the checks at local businesses," United States Attorney Timothy J. Heaphy said today. “This simple fraud scheme had a tremendous impact on the individuals whose checks were stolen. We will do all we can to make these victims whole, and to protect the safety and integrity of the U.S. Mail."

According to a statement of facts filed today and agreed to by the defendants, Barnette, Brown, and others, traveled from Charlotte, N.C. to the Western District of Virginia in order to steal mail containing checks, alter those checks and convert the money for their personal use. The pair admitted to stealing checks from mailboxes, scratching off the addressee’s name, and sometimes the amount the check was written for, and making the checks out to “check cashers” who were then paid to go cash the checks at local banks. The checks were cashed throughout Central Virginia, including in Salem, Roanoke, Lynchburg, Bedford County, Blacksburg and Christiansburg. In all, more than $300,000 was stolen.

The investigation of the case was conducted by the United States Postal Inspection Service, the Lynchburg Police Department, the Roanoke Police Department, the Bedford County Sheriff’s Office, the Salem Police Department, the Christiansburg Police Department and the Blacksburg Police Department. Assistant United States Attorney C. Patrick Hogeboom III will prosecute the case for the United States.

CHARLOTTESVILLE, VIRGINIA -- A local insurance agent, who pled in March to insurance fraud, was sentenced today in the United States District Court for the Western District of Virginia in Charlottesville.

Graham Hutson Messer, 32, of Bremo Bluff, Va., was originally charged in September 2012 with 13 counts of mail fraud. In March, Messer waived his right to be indicted and pled guilty to a one count Information charging him with insurance fraud. This afternoon in District Court he was sentenced to seven months of federal incarceration. In addition, Messer will serve three years of supervised release, the first seven months of which must be served on home confinement. He was also ordered to pay $60,019 in restitution to the victims of his fraudulent activity.

“Mr. Messer diverted money from his clients that they had paid in order to obtain insurance,” United States Attorney Timothy J. Heaphy said today. “His criminal conduct left his victims uninsured and placed the financial futures of many local families in jeopardy. A coordinated law enforcement effort uncovered Mr. Messer’s scheme and led to his conviction. This case demonstrates our continuing commitment to investigating and prosecuting all forms of financial fraud.”

Messer operated as an independent agent offering insurance and insurance products for sale to clients throughout Virginia. Messer purported to sell insurance offered by a variety of insurance companies. Though some policies were in fact placed with the proper companies, many were not.

Messer admitted that he would instruct his clients to send payments for insurance premiums directly to him. The defendant told his clients that he would then remit the payments to the insurance companies. However, Messer admitted that he embezzled those funds for his own, personal use, never sending them to the insurance company, while also deceiving his clients into believing they had insurance coverage when they did not.

The investigation of the case was conducted by the Federal Bureau of Investigation, the Albemarle County Police Department, the Virginia Bureau of Insurance and the Charlottesville City Police Department. Special Assistant United States Attorney Elliott Casey is prosecuting the case for the United States.

Inmate Larry Scott Intentionally Possessed Marijuana, his girlfriend Peggy Evans provided contraband to a federal inmate at USP Lee

United States Attorney Timothy J. Heaphy announced today that a federal inmate currently serving a prison sentence at United States Penitentiary Lee has been sentenced to serve additional federal time after he was involved in possession of contraband, marijuana.  In addition, his girlfriend was also sentenced to serve federal time after she was involved in providing the marijuana to a federal inmate.

Larry Scott, 33, was sentenced in the United States District Court for the Western District of Virginia in Abingdon on June 6, 2013, for possession of contraband (marijuana).

Scott, who was sentenced on June 25, 2003 to 154 months of incarceration by the Northern District of Alabama for bank robbery and brandishing a firearm during and in relation to a crime of violence, was sentenced to serve an additional 60 months of federal incarceration following his most recent conviction.

Peggy Evans was sentenced to time served and four months of home confinement following her guilty plea for providing a federal inmate with contraband, specifically marijuana.

According to evidence provided by Special United States Attorney Debbie Stevens, on July 30, 2011, Scott was found to be in possession of marijuana after a visit with his girlfriend, Peggy Evans.

The investigation was handled by the Federal Bureau of Investigation and Special Investigative Unit of the Bureau of Prisons.  Special Assistant United States Attorney Debbie Stevens prosecuted the cases for the United States.

DANVILLE, VIRGINIA -- An 18-year-old Bassett, Va., man pled guilty this morning to breaking into a Henry County Post Office and causing close to $20,000 worth of damage.

Matthew Fitzgerald, 18, of Bassett, Va., pled guilty this morning in the United States District Court for the Western District of Virginia in Danville to one count of willfully committing a depredation against property of the United States, specifically the Fieldale Post Office.

“Mr. Fitzgerald caused major damage to the Fieldale Post Office and for that he has been justly held accountable,” United States Attorney Timothy J. Heaphy said today. “My hope is that restitution will be ordered in this case to cover the cost of the defendant’s destructive behavior.”

According to evidence presented at today’s guilty plea hearing by Assistant United States Attorney Charlene R. Day, Fitzgerald admitted that on April 18, 2013 he broke into the Fieldale Post Office located in Henry County and damaged property inside.

Fitzgerald has admitted to breaking windows, glass, damaging computers, discharging a fire extinguisher, throwing more than 1,000 keys on the floor and breaking florescent light tubes. In all, Fitzgerald caused $19, 309 in damages.

At sentencing, the defendant faces a maximum possible penalty of up to 10 years in prison and/or a fine of up to $250,000.

The investigation of the case was conducted by the United States Postal Inspection Service and the Henry County Sheriff’s Office. Assistant United States Attorney Charlene Day is prosecuting the case for the United States.

ABINGDON, VIRGINIA – Bryant Alexander Hairston, 20, of Martinsville, Virginia, pled guilty today, in the United States District Court for the Western District of Virginia, in Abingdon, to one count of making false statements in a matter within the jurisdiction of the Executive Branch of the United States and one count of making false statements under oath.

On January 23, 2013, Hairston told a 911 dispatcher there was a gunman on the campus of the University of Virginia’s College at Wise (“UVa-Wise”) who was trying to get into one of the dormitories. Hairston told the dispatcher that the man had a pistol. The campus was placed on lock down and law enforcement officers from various agencies responded to the scene. Armed officers went door to door through the dormitory searching for the alleged gunman. While the search was ongoing, Hairston made statements indicating he was happy that he had saved the lives of his fellow students. Officers became suspicious of Hairston and questioned him. After some time, Hairston admitted he had made up the story about a gunman because he wanted to look like a hero.

“When Mr. Hairston falsely claimed to have seen a gunman on the campus of UVa-Wise, he instigated an immediate emergency response and caused significant stress among his fellow students and their families,” United States Attorney Timothy J. Heaphy said today. “Upon hearing of his despicable lie, students barricaded themselves in rooms and parents worried their children would become victims of another mass shooting. Hairston created a highly charged and dangerous situation for law enforcement and others. His false report reignited the fear that lingers in our district, which has experienced the awful reality of campus violence in our recent past. Our aggressive pursuit of this case demonstrates our desire to hold accountable those who make false reports to law enforcement."

United States District Judge James P. Jones scheduled the sentencing hearing for September 9, 2013, at the Federal Courthouse in Abingdon. As part of the plea agreement reached in the case, Hairston will make restitution of over $4,000.00 (four thousand dollars) to reimburse the various law enforcement and counseling agencies for their costs in responding to the 911 call and dealing with traumatized students.

The investigation of the case was conducted by the police departments of UVa-Wise, Pound, and Wise; the Wise County Sheriff’s Office; the Virginia State Police; and the Bristol Office of the Federal Bureau of Investigation. Assistant United States Attorney Randy Ramseyer is prosecuting the case for the United States.

BIG STONE GAP, VIRGINIA -- The former police chief of the Pennington Gap, Virginia Police Department, who pleaded guilty in January to felony charges related to his involvement in the distribution of prescription pain killers and the burglary of a pharmacy, was sentenced today in the United States District Court for the Western District of Virginia in Big Stone Gap.

William Bryan Young, 39, of Duffield, Va., pled guilty in January to one count of conspiracy to possess with the intent to distribute and distribute oxycodone and one count of burglary of a pharmacy, related to the burglary of the Rite-Aid pharmacy in Pennington Gap, Virginia, on September 28, 2012. Young’s co-defendants, Kevin Andrew Young, 35, of Duffield, Va., and Chris Miles, 35, of Duffield, Va., previously entered guilty pleas to one count of burglary of a pharmacy.

Today in District Court, Young was sentenced to 108 months in prison and three years of supervised release thereafter. In addition, he was ordered to pay $11,571 in restitution.

“Rather than using his police power to protect and serve, William Bryan Young abused his authority to facilitate his drug habit,” United States Attorney Timothy J. Heaphy said today. “Young arranged numerous transactions in which he sold prescription medication to other drug abusers. He even coordinated a commercial burglary as part of his ongoing, desperate search for pills. Mr. Young tarnished the badge he once wore and betrayed the trust of the people of Pennington Gap. This sad case demonstrates how pervasive and dangerous prescription drug abuse can be, and how it pervades all levels of society. This office will continue to bring a comprehensive approach to the prescription drug problem, combining strong enforcement with education and treatment.”

“William Bryan Young not only violated the law, but he also violated the trust placed in him by the public that he was sworn to serve and protect,” said ATF Special Agent in Charge Carl Vasilko. “ATF remains committed to aggressively investigate any person who commits firearm related violent crime in our communities.”

According to evidence presented at the guilty plea hearings by Assistant United States Attorney Zachary Lee, in the Spring of 2012, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) began investigating William Bryan Young’s associations with known drug distributors in Lee County, Virginia. Their investigation, aided by other state, local, and federal law enforcement agencies, determined that William Bryan Young was a long-time user of controlled substances, had distributed controlled substances while employed as the police chief, and that he had orchestrated the burglary of the Rite Aid pharmacy in Pennington Gap, Virginia to obtain prescription pain killers.

Specifically, the investigation determined that on September 28, 2012, William Bryan Young sent all other Pennington Gap Police Department personnel home to ensure that he would be the only police officer working the night shift. At approximately 2:50 a.m. a burglary of the Rite-Aid pharmacy in Pennington Gap, Virginia occurred. Just prior to the burglary, William Bryan Young, who was on duty at the time, contacted officers with the Lee County Sheriff’s Office to determine their positions relative to the location of the pharmacy. After determining that there were no law enforcement officers in close proximity to the pharmacy, William Bryan Young contacted Kevin Young, Jimmy Johnson and Chris Miles to tell them it was clear for them to break-in to the Rite Aid pharmacy. Kevin Young drove himself, Johnson and Miles to the Rite-Aid. Miles broke into the Rite-Aid pharmacy through the drive-thru window and stole approximately 5,000 oxycodone pills. William Bryan Young later received stolen pills from the pharmacy robbery.

On October 18, 2012, William Bryan Young, in his police department issued uniform, sold twenty oxycodone pills to a confidential informant cooperating with the ATF in their investigation. Shortly thereafter, William Bryan Young was arrested by agents with the ATF at the Lee County Courthouse in Jonesville, Virginia.

William Bryan Young admitted to being an illegal user of controlled substances for a number of years and admitted to distributing twenty Percocet pills earlier that day. William Bryan Young also admitted to distributing twenty Percocet pills the previous day, and to distributing six Percocet pills the previous weekend. A search of William Bryan Young’s police cruiser located the pre-recorded United States currency used by the confidential informant to purchase twenty Percocet pills earlier that day. Agents also located thirteen Percocet pills and one oxicodone pill in the police cruiser.

On October 18, 2012, a search warrant was executed at William Bryan Young’s residence located in Duffield, Virginia by federal agents, the Lee County Sheriff’s Office, and the Virginia State Police. Law enforcement officers found 548 Percocet pills and firearms in the residence. In addition, agents located empty evidence bags from the Pennington Gap Police Department in William Bryan Young’s personal vehicle that appeared to have previously contained controlled substances.

The investigation of the case was conducted by the Lee County Sheriff’s Office, Virginia State Police, Southwest Virginia Drug Task Force, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Drug Enforcement Administration, Federal Bureau of Investigation, and United States Marshals Service. Assistant United States Attorney Zachary Lee is prosecuting the case for the United States.

ABINGDON, VIRGINIA – Attorney Stuart Collins, 42, of Wise, Va., pled guilty today, in the United States District Court for the Western District of Virginia, in Abingdon, to four felony counts of obtaining controlled substances by fraud.

The plea agreement provides that a significant variance above the guideline range is appropriate based on the conduct underlying the offenses which are being dismissed pursuant to the agreement – including Collins’ attempts to obstruct the investigation of his illicit drug activity. If the Court accepts the plea agreement, Collins will be sentenced to imprisonment for a term of 20 months, a sentence higher than the otherwise applicable guidelines range of imprisonment for these crimes.

“The guilty pleas entered today demonstrate that no person is above the law,” United States Attorney Timothy J. Heaphy said today. “The 20 month sentence of imprisonment called for in this plea agreement reflects the United States Attorney’s Office insistence that Collins’s obstructive conduct be taken into account in determining an appropriate punishment.”

United States District Judge James P. Jones scheduled the sentencing hearing for September 10, 2013, at the Federal Courthouse in Abingdon.

The investigation of the case was conducted by the Bristol Office of the Federal Bureau of Investigation with the assistance of the Virginia State Police, Southwest Regional Drug Task Force, Wise County Sheriff’s Office and Wise Police Department. Assistant United States Attorneys Jennifer Bockhorst, Donald Wolthuis and Randy Ramseyer prosecuted the case for the United States.

DANVILLE – Jean Claude Bridges pleaded guilty earlier this year to deliberately setting a church on fire and was sentenced this morning in the United States District Court for the Western District of Virginia in Danville. Bridges was sentenced to serve two years in prison, two years of supervised release and ordered to pay $141,773.68 in restitution.

Bridges, 18, of Henry County, Va., pleaded guilty to one count of destroying a religious property by fire. Prior to his guilty plea, the court granted a government motion to transfer Bridges to adult status for criminal prosecution. The defendant was 17-years-old when the criminal conduct occurred.

“Mr. Bridges’ racial bias led him to commit the dangerous crime of arson,” United States Attorney Timothy J. Heaphy said today. “When he set fire to the New Holy Deliverance Outreach Ministry, he endangered neighbors and first responders. This act of prejudice offended the entire community. This office will protect the civil rights of everyone and vigorously prosecute crimes like that committed by Mr. Bridges. Racism has no place in Axton or anywhere else in the Western District of Virginia.”

“The freedom to practice the religion that we choose in a safe environment without being subjected to hateful acts is among our nation’s most cherished rights,” said Roy L. Austin, Jr., Deputy Assistant Attorney General of the Justice Department’s Civil Rights Division. “Anyone who violates this right will be prosecuted to the fullest extent of the law.”

According to filings in the case, on May 20, 2012, at approximately 1:20 a.m., Bridges and another juvenile intentionally set fire to New Holy Deliverance Outreach Ministry, a church with a predominantly African American congregation, located in Axton, Va. In pleading guilty to this offense, Bridges admitted that he burned down New Holy Deliverance Outreach Ministry because of the race, color and ethnic characteristics of its congregants.

The investigation of the case was conducted by the Henry County Department of Public Safety, the Henry County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Thomas Cullen, assisted by Trial Attorney Christopher Lomax of the Department of Justice’s Civil Rights Division, will prosecute the case for the United States.

ROANOKE, VIRGINIA -- A Check, Va. man, who previously pled guilty to lying to federal investigators about his dealings in firearms, was sentenced yesterday in the United States District Court for the Western District of Virginia in Roanoke.

Thomas Zachariah Jeffries, 45, of Check, Va., previously pled guilty to one count of lying to investigators about his possession of a semiautomatic shotgun. Yesterday morning, he was sentenced to six months of federal incarceration to be followed by six months of home incarceration. In addition, as part of the plea agreement the defendant forfeited 171 firearms, valued at more than $75,000, to the United States.

“Mr. Jeffries illegally sold firearms for profit and lied to federal investigators about his actions,” United States Attorney Timothy J. Heaphy said today. “Illegal gun sales by unlicensed dealers put the public in danger and will not be tolerated.”

The investigation of Mr. Jeffries began in 2010 when agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives [ATF] delivered a “Notice Of Unlicensed Firearms Dealing In Violation Of Federal Law” letter to the defendant. ATF officials told Mr. Jeffries to either stop dealing in firearms or get a license to do so lawfully.

In May 2012, investigators discovered that the defendant had 33 firearms for sale on a public website. Later in 2012, investigators, in conjunction with a search of Jeffries home, interviewed the defendant, during which time the defendant stated that he had never owned, possessed or even seen a semiautomatic shotgun, commonly referred to as a “street sweeper.” Investigators later determined that in fact the defendant had been in possession of the firearm in question.

The investigation of the case was led by Special Agent Stephen Levesque of the Bristol ATF Office, with assistance from the Roanoke ATF Office. Special Assistant United States Attorney Albert Mayer prosecuted the case for the United States.

ABINGDON, VIRGINIA -- A Washington D.C.-based doctor has been indicted by a Federal Grand Jury sitting in the United States District Court for the Western District of Virginia in Abingdon on allegations of illegally distributing prescription drugs.

The grand jury has charged Alen Johannes Salerian, 65, of Bethesda, Md., in a 36-count indictment that was unsealed this afternoon following the defendant’s initial court appearance.

Salerian has been charged with one count of conspiring to distribute OxyContin, oxycodone, methadone, Opana ER and fentanyl, all schedule II controlled substances, without a legitimate medical purpose and beyond the bounds of medical practice and 35 counts of distributing OxyContin, oxycodone, and methadone, all schedule II controlled substances, without a legitimate medical purpose and beyond the bounds of medical practice.

According to the indictment, between 2001 and 2010, Salerian, a medical doctor, operated the Washington Center for Psychiatry in Washington D.C. In 2010, Salerian renamed his practice The Salerian Center for Neuroscience and Pain.

During the time relevant to this indictment, office fees for pain management patients at the Washington Center for Psychiatry and The Salerian Center for Neuroscience and Pain were increased so that pain management patients were charged higher fees for office visits than psychiatric patients. In 2009, according to the practice's fee schedule, an "Initial Assessment" cost $290, and "Medication visits 10-15 minutes" cost $155. There was no separate cost listed for pain management patients. In 2010, according to the practice's fee schedule, the fee for a new psychiatric patient visit was $295, "Medication Visits 10-15 minutes" cost $160, and psychotherapy visits lasting 25-30 minutes cost $260. All appointments for pain management patients in 2010 cost $350. In 2011, the fee for a new psychiatric patient visit was increased to $310 and subsequent office visits cost $170. A new patient visit for a pain management patient was increased in 2011 to $1000, and the "monthly fee" was increased to $370.

During times relevant to this indictment, pain management patients at the Washington Center for Psychiatry and The Salerian Center for Neuroscience and Pain were provided materials advising them monthly consultations were required, either in person or via telephone. Some patients were advised orally that every second, third, and fourth appointment could be conducted via telephone or via live Internet communication. Phone and Internet consultations were billed at the same rate as follow-up monthly office visits. Following a phone or Internet consultation, prescriptions were either available for pick-up at the Center or were sent to the patient or pharmacy.

The indictment alleges that between 2007 and April 5, 2012, Salerian distributed and dispensed, and caused the distribution and dispensing, of the prescription pain medications OxyContin, oxycodone, methadone, Opana ER, and fentanyl to pain management patients without a legitimate medical purpose and beyond the bounds of medical practice.

If convicted, the maximum possibly penalty faced by the defendant for each count of conviction is up to 20 years in prison and/or a fine of up to $1,000,000.

The investigation of the case was conducted by the Drug Enforcement Administration, the Department of Health and Human Services-Office of the Inspector General, the Office of Personnel Management-Office of the Inspector General, the Virginia State Police, and the Federal Bureau of Investigation. Assistant United States Attorney Jennifer Bockhorst and Special Assistant United States Attorney Dennis 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.

WASHINGTON – The last conspirator charged in the Western District of Virginia was sentenced today for his role in a conspiracy that disseminated thousands of images and videos of the sexual abuse of children, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and the U.S. Attorney for the Western District of Virginia Timothy J. Heaphy.

Jesse Leon Coleman, 48, of Lynchburg, Va., was sentenced today following his previous plea to one count of receipt of child pornography by Senior U.S. District Judge Norman K. Moon in the Western District of Virginia to serve 135 months.  Following his release, Coleman must register as a sex offender.

In January 2012, a grand jury charged nine individuals, including Coleman, with conspiracy to receive, distribute, possess and access with intent to view child pornography.

Co-defendants Manuel Antonio Mares, 57, of Miami; Jeremy Hart Yost, 26, of West Bend, Ore.;  Richard Phillip Allen, 66, of Redondo Beach, Calif.;  James Calvin Boyd, 59, of Pell City, Ala.; and  Peter Franklin Ortiz, 57, of Greenville, S.C., were previously sentenced in the Western District of Virginia for their roles in the conspiracy.  Co-defendants Thomas Syfor, 71, and Matthew Ackerman, 49, both of Bethlehem, Pa., were previously transferred to the Eastern District of Pennsylvania for disposition in that district. The ninth defendant, known as “Andy Danilov” is believed to reside in Russia and remains at large.

According to court documents, beginning in August 2010 and continuing until at least November 2011, Danilov distributed emails to a group of individuals, including the defendant, that contained links to compressed files and file attachments depicting minors engaged in sexually explicit conduct. Danilov often used the screen name “Cinemaboy” in the emails. According to information presented at the plea hearing, forensic analysis of each of the defendants’ computers confirmed their involvement in the conspiracy, and some of the defendants were found to possess very large numbers of images and movies depicting the sexual abuse of children.

Evidence presented at the sentencing hearing indicated that, while in the military, Coleman was convicted for possession of child pornography, and sexually abused three minor boys overseas. 

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

The investigation of the case was conducted by the FBI Innocent Images Operations Unit. The case is being prosecuted by Assistant U.S. Attorney Nancy Healey of the Western District of Virginia and Trial Attorney Darcy Katzin of the Criminal Division’s Child Exploitation and Obscenity Section.

CHARLOTTESVILLE, VIRGINIA -- Crime impacts tens of millions of Americans every year. It not only deprives victims of property and physical safety, but also shakes their sense of security and peace. Crime victimization has significant emotional, physical and financial consequences for victims, families, friends and communities.

Only 30 years ago, crime victims had no rights, access to compensation, or services to help rebuild their lives. They were often excluded from courtrooms and treated as an afterthought by the criminal justice system.

Through decades of advocacy and hard work, we have come a long way. Today, every state has enacted crimes victims’ rights laws and established crime victim compensation funds. More than 10,000 victim service agencies help victims throughout the nation. Every year, states and localities receive millions of federal dollars to support these services.

These resources help survivors of crime bravely face the task of reshaping their lives after victimization. Through participation in the criminal justice process, crime victims today routinely obtain access to counseling and other victim assistance services, secure restitution or forfeiture to provide financial recovery, and ensure that their voices are heard by judges as cases are resolved.

This month, the Department of Justice will join with people across the country to recognize National Crime Victims’ Rights Week (April 21-27), a time to honor local champions of crime victims’ rights. This year’s theme – New Challenges. New Solutions. – highlights the ongoing effort to provide needed services to crime victims of every kind. During this week we will honor victims and salute victim advocates and criminal justice professionals who fight for heighted awareness of victim’s issues.

On Wednesday, April 24 at 2 p.m., leaders from across Central Virginia honored National Crimes Victims’ Rights Week during a ceremony at Darden Towe Park in Charlottesville.

Leaders from the City of Charlottesville, Albemarle County, Greene County, Louisa County, the Department of Homeland Security, The Shelter for Help in Emergency, the Charlottesville/Albemarle County Domestic Violence Advocate and the Sexual Assault Resource Agency joined together to commemorate the power and strength shown by victims of crime. We will release biodegradable balloons honoring those who have advanced the cause of victims’ rights in the areas of domestic violence and stalking, violent crimes, crimes against the elderly, human trafficking, white collar and financial fraud, sexual assault and crimes against children and for those victims who have yet to be identified.

This event was being sponsored by the victim/witness advocacy programs from: Albemarle County, the United States Attorney’s Office for the Western District of Virginia, the City of Charlottesville, Fluvanna County, Greene County, Homeland Security Investigation, and the Sexual Assault Resource Agency, the Shelter for Help in Emergency and the Albemarle/Charlottesville Domestic Violence Advocacy Program.

United States Attorney Timothy J. Heaphy, Shirley Atkins, and others, released balloons Thursday during an event to honor National Crime Victims’ Rights Week.

LYNCHBURG, VIRGINIA -- a 54-year-old Lynchburg woman, who previously pleaded guilty to hiding income from the Social Security Administration, was sentenced yesterday in the United States District Court for the Western District of Virginia in Lynchburg.

Teresa Gayle Helms, 54, previously waived her right to be indicted and pleaded guilty to one count of theft of government money. Yesterday in District Court, she was sentenced to six months incarceration and six months of home confinement. She was also ordered to pay restitution of $78,696 to the Social Security Administration, $1,124 to Medicaid and $24,759 to Medicare.

“Programs like Social Security, Medicaid and Medicare are important safety nets that protect the health and safety of many Americans,” United States Attorney Timothy J. Heaphy said today. “When criminals like Ms. Helms steal from these programs, this office will bring them to justice.”

Helms previously admitted to stealing more than $104,800 in public money by concealing the fact that she worked as the owner and manager of two Lynchburg-area Adult Erotica stores while receiving Social Security, Medicare and Medicaid benefits.

The investigation of the case was conducted by the Lynchburg Police Department, the Social Security Administration, the Department of Health and Human Services. Assistant United States Attorney Charlene Day is prosecuting the United States.

ABINGDON, VIRGINIA -- United States Attorney Timothy J. Heaphy announced today that Travis Dewayne Crasten a/k/a “Tater”, age 31, and Jessica Michelle Morefield, age 26, both of Abingdon, Va., were sentenced in the United States District Court for the Western District of Virginia in Abingdon to serve fourteen years in prison for their involvement in the manufacture of methamphetamine.

Following their convictions by a jury on October 17, 2012, Crasten and Morefield were each ordered to serve 168 months imprisonment and serve eight years supervised release for one count of conspiracy to manufacture 50 grams or more of methamphetamine, one count of manufacturing methamphetamine, one count of maintaining a place for the purpose of manufacturing methamphetamine, and one count of purchasing pseudoephedrine for the purpose of manufacturing methamphetamine. Previously, co-defendant Timothy Doss was sentenced to 10 years imprisonment and co-defendant Kelli Nicole Harris was sentenced to 51 months imprisonment following their guilty pleas to one count of conspiracy to manufacture 50 grams or more of methamphetamine.

According to evidence presented at trial and other hearing by Assistant United States Attorney Zachary T. Lee, Drug Enforcement Administration agents began investigating large quantities of pseudoephedrine being purchased by Crasten, Moorefield, Doss, and Long in Abingdon, Bristol, Virginia, and Bristol, Tennessee, beginning in November 2011 and continuing through February 2012. On February 23, 2012, agents with the Drug Enforcement Administration, Washington County Sheriff’s Office, Abingdon Police Department and Virginia State Police executed a search warrant at Crasten and Moorefield’s residence on Sugarbush Lane in Abingdon, Virginia. Agents found Crasten, Moorefield, Doss and Long in the residence, a red phosphoreus methamphetamine lab, and approximately nine grams of methamphetamine.

The investigation of this case was conducted by the Drug Enforcement Administration, Washington County Sheriff’s Office, Abingdon Police Department and Virginia State Police. Assistant United States Attorney Zachary T. Lee of the United States Attorney’s Office in Abingdon prosecuted the case.

New Challenges. New Solutions

            CHARLOTTESVILLE, VIRGINIA -- Crime impacts tens of millions of Americans every year.  It not only deprives victims of property and physical safety, but also shakes their sense of security and peace. Crime victimization has significant emotional, physical and financial consequences for victims, families, friends and communities.

Only 30 years ago, crime victims had no rights, access to compensation, or services to help rebuild their lives. They were often excluded from courtrooms and treated as an afterthought by the criminal justice system.

Through decades of advocacy and hard work, we have come a long way. Today, every state has enacted crimes victims’ rights laws and established crime victim compensation funds. More than 10,000 victim service agencies help victims throughout the nation.  Every year, states and localities receive millions of federal dollars to support these services.

These resources help survivors of crime bravely face the task of reshaping their lives after victimization.  Through participation in the criminal justice process, crime victims today routinely obtain access to counseling and other victim assistance services, secure restitution or forfeiture to provide financial recovery, and ensure that their voices are heard by judges as cases are resolved.

This month, the Department of Justice will join with people across the country to recognize National Crime Victims’ Rights Week (April 21-27), a time to honor local champions of crime victims’ rights. This year’s theme – New Challenges. New Solutions. – highlights the ongoing effort to provide needed services to crime victims of every kind.  During this week we will honor victims and salute victim advocates and criminal justice professionals who fight for heighted awareness of victim’s issues.

On Wednesday, April 24 at 2 p.m., leaders from across Central Virginia will honor National Crimes Victims’ Rights Week during a ceremony at Darden Towe Park in Charlottesville.

Leaders from the City of Charlottesville, Albemarle County, Greene County, Louisa County, the Department of Homeland Security, The Shelter for Help in Emergency, the Charlottesville/Albemarle County Domestic Violence Advocate and the Sexual Assault Resource Agency will join together to commemorate the power and strength shown by victims of crime.  We will release biodegradable balloons honoring those who have advanced the cause of victims’ rights in the areas of domestic violence and stalking, violent crimes, crimes against the elderly, human trafficking, white collar and financial fraud, sexual assault and crimes against children and for those victims who have yet to be identified.

Please join us on Wednesday, April 24 at 2 p.m. in Darden Towe Park to honor those who have advanced the cause of victims’ rights – an effort that impacts us all.

This event is being sponsored by the victim/witness advocacy programs from: Albemarle County, the United States Attorney’s Office for the Western District of Virginia, the City of Charlottesville, Fluvanna County, Greene County, Homeland Security Investigation, and the Sexual Assault Resource Agency, the Shelter for Help in Emergency and the Albemarle/Charlottesville Domestic Violence Advocacy Program.

ROANOKE, VIRGINIA -- The former foreman of an asbestos company, hired to remove asbestos-containing materials from Virginia Tech’s Cowgill Hall in 2007, pled guilty this morning in the United States District Court for the Western District of Virginia in Roanoke for violating the Clean Air Act.

Edward K. Durst, 52, of Richmond, Va., was charged in a five count indictment in October 2012. Durst pled guilty, today, to one count of knowingly disposing of and causing the disposal of, regulated asbestos-containing materials in violation of the Clean Air Act and the federal regulations regarding proper handling of asbestos.

“The Clean Air Act requires construction officials to follow basic rules that ensure a safe and clean environment for future generations,” United States Attorney Timothy J. Heaphy said today. “When individuals like Mr. Durst violate this important environmental protection, this office and the Blue Ridge Environmental Task Force will hold them criminally accountable.”

"Asbestos is a known carcinogen, can cause other fatal diseases and has no safe exposure level,” said David G. McLeod, Jr., Special Agent in Charge of EPA’s criminal enforcement program in Virginia. “The defendant directed workers to sell the window frames to a recycling center rather than taking them to a facility equipped to handle hazardous wastes safely and legally. Unsafe disposal of any hazardous material endangers human health. This way of ‘doing business’ is both dangerous and criminal. EPA and its partner agencies will vigorously prosecute those who place profit ahead of public health and the environment.”

According to evidence presented at today’s hearing by Special Assistant United States Attorney David Lastra and Assistant United States Attorney Jennie Waering, Durst’s former employer, an asbestos abatement company, was hired to oversee the removal and disposal of asbestos-containing materials from Cowgill Hall on the campus of Virginia Tech in 2007. The materials were aluminum window frames with asbestos glazing.

Instead of properly handling, transporting and disposing of those materials, in compliance with the Clean Air Act, Durst, instructed others to remove and dispose of the window frames from a designated asbestos waste container and load them into unlabeled vehicles. Durst later instructed others to transport those materials to a metal recycling facility and kept the cash payments for the scrap aluminum.

At sentencing, the maximum possible penalty faced by the defendant is up to five years in prison and/or a fine of up to $250,000.

The investigation of the case began when the president of the asbestos abatement company became aware of Durst’s conduct and contacted the Virginia Tech Police Department. The federal investigation was conducted by the Blue Ridge Environmental Task Force, the Environmental Protection Agency, the Office of Inspector General United States Housing and Urban Development, the Virginia Tech Police Department and the Christiansburg Police Department. Special Assistant United States Attorney David Lastra (EPA Regional Criminal Enforcement Counsel) and United States Attorney Jennie L.M. Waering are prosecuting the case for the United States.

LYNCHBURG, VIRGINIA -- A Winchester man who willfully failed to file personal tax returns for three years and attempted to obstruct the administration of the Internal Revenue Code, was sentenced this morning in the United States District Court for the Western District of Virginia.

Following a jury trial in January 2013, James Bowers Johnson, 47, of Winchester, Va., was found guilty of one count of obstructing the Internal Revenue Service and three counts of willfully failing to file personal tax returns.

“All Americans must pay their fair share of federal taxes - something that Mr. Johnson intentionally chose not to do,” United States Attorney Timothy J. Heaphy said today. “Instead of abiding by the law and paying his taxes. Mr. Johnson hid income from the IRS and clogged the tax adjudication system with frivolous lawsuits and court filings. Today’s sentence demonstrates our commitment to holding tax cheats accountable and obtaining these much-needed funds from criminals who attempt to evade their legal obligation.”

Today in District Court, Johnson was sentenced to 48 months in Federal prison. In addition, Honorable Judge Norman K. Moon added 30 days of additional incarceration to the end of Johnson’s sentence after finding the defendant in contempt due to his behavior during today’s hearing.

Based on evidence presented at trial by Assistant United States Attorney C. Patrick Hogeboom III, the jury found that Johnson, who was self-employed, hid his gross income, derived from the sale of prepaid telephone cards, rental receipts and capital gains, from the Internal Revenue Service in a number of ways. He requested that customers place payments in a variety of nominee entities he controlled, used money orders or cash and concealed his owners of assets by placing assets, including his residence, and bank accounts in the names of limited liability companies, foundations, companies, corporations and domestic and foreign trusts. Between 1999 and 2007, Johnson attempted to conceal more than $1.4 million in income.

In addition, the jury found that Johnson, despite earning $160,000 in income in 2005, $385,000 in income in 2006 and $123,000 in income in 2007, willfully failed to file a tax return in any of those years.

The investigation of the case was conducted by the Internal Revenue Service Criminal Investigation. Assistant United States Attorney C. Patrick Hogeboom III prosecuted the case for the United States.

CHARLOTTESVILLE, VIRGINIA -- A resident of Reva, Virginia, who was arrested in March on a Federal criminal complaint, has been indicted by a Federal Grand Jury sitting in the United States District Court for the Western District of Virginia in Charlottesville.

The grand jury has charged Kenneth Edward Kuban, 61, of Reva, Virginia, with one count of stalking, one count of stalking in violation of a protection order, one count of identification fraud and one count of violating a protection order within the special maritime and territorial jurisdiction of the United States

The charges in the indictment allege that Kuban knowingly caused others to travel in interstate commerce to unknowingly stalk the victim, thereby placing the victim in fear of serious bodily injury and causing substantial emotional distress.

If convicted, the defendant faces a maximum possible penalty of up to five years in prison and/or a fine of up to $250,000 on each count.

The investigation of the case was conducted by the Library of Congress-Office of the Inspector General. Special Assistant United States Attorney Jason Beaton 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.

ABINDGON, VIRGINIA -- United States Attorney Timothy J. Heaphy announced today that a Federal Grand Jury sitting in the United States District Court for the Western District of Virginia in Abingdon has charged GM-Southwest Inc., and the company’s former owner, with racketeering, conspiracy, money laundering and fraud charges.

In a sealed indictment returned April 8, 2013 and unsealed today, the grand jury has charged John Paul Gutschlag Sr., 73, of Aubrey, Texas and GM-Southwest, Inc., in a 57-count indictment. Gutschlag, the former owner of GM-Southwest and the corporation have been charged with one count of racketeering, one count of conspiracy to commit wire fraud, seven counts of wire fraud, one count of conspiracy to commit mail fraud, 41 counts of mail fraud, one count of money laundering conspiracy and five counts of money laundering. The Indictment also seeks forfeiture of real and personal property, including business and personal bank accounts associated with the defendants.

According to the indictment, under the direction of Gutschlag, GM-Southwest was in the business of collecting health insurance premiums from students and universities, paying claims and providing reports related to the premium collection and claims payment both to the university and the carriers. The carriers, in turn, paid GM-Southwest a set commission or fee, typically a percentage of the gross premium collected.

From August 2003 through the end of the 2010-2011 school year, GM-Southwest, under the direction of Gutschlag, provided student health insurance for Virginia Tech’s undergraduate and graduate students. The indictment alleges that in 2005, Gutschlag, and others, devised a scheme to defraud colleges and universities by providing false and fraudulent claims reports and other misrepresentations designed to increase the income of GM-Southwest and to personally enrich Gutschlag. They did this by devising and utilizing a “claims modifier” to alter the claims numbers to produce an inflated dollar amount which overstated the claims paid and loss ratios, causing students and Virginia Tech to pay significantly higher premium costs.

The indictment accuses Gutschlag and GM-Southwest of overstating the amount of claims paid on behalf of Virginia Tech by over $9 million from 2003-2004 through the 2009-2010 academic years.

If convicted, Gutschlag faces a maximum possible penalty of up to 20 years in prison on each count and/or fines ranging from $250,000 to $500,000 on each count. GM-Southwest Inc. faces corporate probation and/or fines ranging from at least $500,000 per count.

The investigation of the case is being conducted by the Internal Revenue Service Criminal Investigation. Assistant United States Attorneys Anthony Giorno and Randy Ramseyer will prosecute the case for the United States.

LYNCHBURG, VIRGINIA -- A man who was a fugitive for more than a year, pled guilty this morning in the United States District Court for the Western District of Virginia in Lynchburg to a variety of fraud charges.

James Gordon Fields, 47, whose last known address in unknown, pled guilty this morning to two counts of bank fraud, one count of making a false statement in relation to a loan, one count of aggravated identity theft, one count of making a false statement under oath in relation to a bankruptcy case and one count of engaging in a monetary transaction in criminally derived property of a value greater than $10,000.

Today in District Court, Fields admitted to submitting forged signatures on guarantees for loans, submitting fraudulent documentation showing he was the beneficiary of a $77 million trust, which in fact did not exist, and lying about all of the above during his bankruptcy proceedings.

Fields admitted that he forged documents in September 2007 and March 2008 that caused Wachovia bank to issue more than $14 million in fraudulent loans. In addition, he admitted that at the time of his arrest, he removed a screen from a second story window and attempted to escape capture by United States Marshals. He was eventually apprehended two houses away.

At a sentencing hearing scheduled for July 2, 2013, Fields faces a maximum possible penalty of up to 30 years in prison and/or a fine of up to $1,000,000 on the bank fraud charges, a maximum possible penalty of up to 30 years in prison and/or a fine of up to $1,000,000 on the false statement charge, a mandatory two-year prison term on the aggravated identity theft charge, a maximum possible penalty of up to five years in prison and/or a fine of up to $250,000 on the bankruptcy charge and a maximum possible penalty of up to 10 years in prison and/or a fine of up to $250,000 on the monetary transaction charge.

The investigation of the case was conducted by the United States Postal Inspection Service, the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation and the United States Marshal’s Service. Assistant United States Attorney Randy Ramseyer is prosecuting the case for the United States.

ABINGDON, VIRGINIA -- The former president of the Saltville Rescue Squad was sentenced today in the United States District Court for the Western District of Virginia in Abingdon on healthcare fraud charges.

Following a jury trial last September, Eddie Wayne Louthian Sr., 60, of Saltville, Va., was found guilty on one count of conspiracy to commit healthcare fraud, one count of healthcare fraud, four counts of making false statements in relation to a healthcare matter and one count of making a false statement to a federal grand jury.

Today in District Court he was sentenced to 48 months in Federal prison and three years of supervised release thereafter.

“Mr. Louthian used the Saltville Rescue Squad as a vehicle to defraud the Medicare program,” said United States Attorney Timothy J. Heaphy. “A jury found him guilty to fraudulently billing Medicare for unnecessary services, acts for which he was now been justly punished. This office will continue to root out health care fraud, which drives up costs to consumers.”

“Not only did Mr. Louthian defraud the Medicare system of hundreds of thousands of dollars, he also robbed from seniors in need of medical care. Fraud like his inevitably drives prices up for medical services, which all of us end up paying for,” said Virginia Attorney General Ken Cuccinelli.

Monica Hicks, a member of the rescue squad also charged in the scheme, previously pleaded guilty to one count of conspiracy to commit healthcare fraud.

Following evidence presented by Virginia Assistant Attorneys General and Special Assistant United States Attorneys Janine Myatt and Vaso Doubles, a jury found that Louthian and Hicks conspired to fraudulently bill Medicare and Anthem Blue Cross Blue Shield for non-emergency ambulance services for Medicare eligible patients.

In order to receive Medicare reimbursements for non-emergency ambulance transports patients must be bed-confined or otherwise in such a medical condition that ambulance transport is necessary. The jury found that the defendant was obtaining reimbursement for transporting patients that did not qualify for non-emergency transport.

The jury found that between December 6, 2005 and September 17, 2011, the defendant fraudulently billed Medicare approximately $1,650,000 and fraudulently received approximately $750,000 in reimbursements for Medicare ambulance transports.

In addition, the jury found that between December 20, 2005 and September 3, 2011, the defendant fraudulently billed Anthem approximately $1,000,000 and fraudulently received approximately $130,000 in reimbursements for ambulance transports.

The defendant was also found guilty of submitting fraudulent trip sheets and Certificates of Medical Necessity forms for billing purposes and made false statements before a Federal Grand Jury.

The District Court also imposed a money judgment against Louthian for $907,521, the full amount of the fraud. The court also forfeited assets associated with Louthian, including bank accounts, vehicles, real estate, and an ambulance service, in partial satisfaction of the money judgment. The court will determine the interest of other persons in these assets at a later hearing.

The investigation of the case was conducted by the Department of Health and Human Services Office of the Inspector General, the Virginia Office of the Attorney General’s Medicaid Fraud Control Unit and the Internal Revenue Service Criminal Investigation. Janine Myatt and Vaso Doubles prosecuted the case for the United States.

LYNCHBURG, VIRGINIA -- A former route driver for a shredding company, and two other associates, were sentenced today in the United States District Court for the Western District of Virginia in Lynchburg on fraud charges.

Mark Allen Mobley, 33, of Concord, Va., Sean Patrick Mixon, 40, of Lynchburg, Va., and Spencer Glenn Payne, 23, of Gladys, Va., all previously pled guilty to one count of credit card fraud for the unauthorized use of gift cards.

According to evidence presented by Assistant United States Attorney Daniel Bubar, while working on his shred route, Mobley would steal discarded but still active gift cards from the shred bins he was hired to empty at an area mail fulfillment company. He then either used these cards for his personal use or gave them to Mixon and Payne, who both accepted the gift cards knowing they were stolen.

In all, Mobley was responsible for intended financial losses in excess of $120,000. Payne caused financial losses of at least $40,000 and Mixon caused financial losses of at least $29,000. Today in District Court, Mobley was sentenced to 21 months incarceration, Payne was sentenced to six months incarceration and Mixon was sentenced to five years of supervised probation.

The investigation of the case was conducted by the United States Secret Service and the Campbell County Sheriff’s Office. Assistant United States Attorney Daniel Bubar prosecuted the case for the United States.

CHARLOTTESVILLE, VIRGINIA -- A Gordonsville man was recently indicted by a Federal grand jury sitting in the United States District Court for the Western District of Virginia in Charlottesville on charges related to the manufacturing of methamphetamine.

On February 27, the grand jury charged Jerry Richard Blackwell, 43, of Gordonsville, Va., with one count of conspiring to manufacture, to possess with the intent to distribute and to distribute over 50 grams of methamphetamine, one count of possessing pseudoephedrine with the intent to manufacture methamphetamine and one count of manufacturing methamphetamine while creating a substantial risk of harm to human life.

The investigation of the case was conducted by the Blue Ridge Narcotics and Gang Task Force and the Drug Enforcement Administration. Special Assistant United States Attorney Robert Abendroth is prosecuting the case for the United States.

At sentencing, Blackwell faces a sentence of 10 years to life in prison and/or a fine of up to $10,000,000 on count one, a maximum possible penalty of up to 20 years in prison and/or a fine of up to $250,000 on count two and a maximum possible penalty of up to 10 years in prison and/or a fine of up to $250,000 on count three.

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 -- United States Attorney Timothy J. Heaphy announced today that Ronald Green, 49, of Isom, KY., was sentenced in the United States District Court for the Western District of Virginia in Abingdon to serve twenty years in prison for his involvement in the robbery of a bank in Norton, Virginia.

“Mr. Green put the lives of both bank employees and customers at risk with his brazen act of violence,” United States Attorney Timothy J. Heaphy said today. “Violent criminals like Mr. Green must be held accountable for their actions, as occurred today in federal court.”

Green was ordered to serve 240 months imprisonment and serve five years supervised release for his convictions for one count of bank robbery with a dangerous weapon and one count of brandishing a firearm in furtherance of a crime of violence.

According to evidence presented at hearings by Assistant United States Attorney Zachary T. Lee, in early December 2011 Green staked out numerous banks in Kentucky and Southwest Virginia in preparation for finding a bank to rob. On December 9, 2011, Green entered the Norton branch of New Peoples Bank and brandished a large caliber handgun at the bank tellers demanding money. After receiving the money, Green exited the bank and escaped the scene on a bicycle. Green was arrested on December 23, 2011, and found to be in possession of a large amount of money stolen from the bank.

The investigation of this case was conducted by the Wise County Sheriff’s Office, Town of Wise Police Department, City of Norton Police Department, Virginia State Police, Kentucky State Police, Letcher County, Kentucky Sheriff’s Office, the Federal Bureau of Investigation, and the United States Marshals Service. Assistant United States Attorney Zachary T. Lee of the United States Attorney’s Office in Abingdon prosecuted the case.