Carjacking and Firearms Conviction

Albert Eugene Dunn, age 26 of Valdosta, Georgia, was found guilty on May 10,2010 after a five-day federal jury trial in Valdosta, Georgia. Dunn was convicted on three counts of carjacking and four counts of federal firearm violations which involved two separate home invasions.

The evidence introduced at trial showed that Dunn, with the help of an accomplice, invaded the homes of college students through the use of firearms and knives. He then demanded valuables and took vehicles belonging to the victims with the intent to cause death and serious bodily injury. In one instance, the jury found that the intended serious bodily injury included Dunn causing another person to engage in a sexual act by using force. The Honorable Louis Sands, U.S. District Judge, presided over the trial. Sentencing will be scheduled by the Court at a later date.

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Emanuel County Couple Plead Guilty to Mortgage Fraud Scheme

BRIAN STEPTOE, 41, and NATASHA STEPTOE, 38, both from Emanuel County, Georgia, pleaded guilty today in federal district court to bank fraud and conspiracy to commit bank fraud, respectively.

“The U.S. Attorney’s Office will continue to work with law enforcement partners to investigate and prosecute those who engage in financial crimes,” stated United States Attorney Ed Tarver.

Evidence presented during their guilty pleas revealed that the Steptoes, with the assistance of others, knowingly submitted a false loan application and other documentation to Bank of America with regard to a $400,000 home loan. The investigation revealed that the Steptoes’ scheme was to defraud Bank of America in order to pocket sizeable sums of money for themselves and others. The property went into foreclosure soon after it was sold and remains on the market to this day.

BRIAN STEPTOE faces a maximum penalty of thirty (30) years' imprisonment, a $1,000,000 fine, and five (5) years' of supervised release. He is currently incarcerated and awaits sentencing. NATASHA STEPTOE faces a maximum penalty of five (5) years' imprisonment, a $250,000 fine, and three (3) years' of supervised release. She remains on bond pending her sentencing hearing, which has not yet been scheduled.

This case was brought in coordination with President Barack Obama's Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

U.S. Attorney Tarver recognized the extensive efforts of the FBI in bringing this criminal activity to light, and particularly praised the efforts of Statesboro FBI Special Agent Cornelius Harris, who investigated this case.

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Augusta Man Charged with Interstate Travel to Engage in Illicit Sexual Conduct and with Producing Child Pornography

ROBERT FRANCIS KWASNIAK, 38, of Augusta, Georgia, has been indicted by a federal grand jury on charges of interstate traveling to engage in illicit sex with a minor; producing child pornography; and possessing child pornography.

United States Attorney Edward J. Tarver said, “This defendant has been charged with producing child pornography and traveling across state lines to engage in illicit sex with a minor. Our children deserve protection from those who abuse and prey on them. The U.S. Attorney’s Office will continue to aggressively prosecute individuals involved in the sexual exploitation of children.”

The indictment of KWASNIAK arises out of a joint investigation by the Georgia Bureau of Investigation, the North Carolina Bureau of Investigation, and the Federal Bureau of Investigation. The indictment alleges KWASNIAK traveled to North Carolina to engage in sexual acts with a 15-year-old girl.

Tarver emphasized that an indictment is only an accusation and is not evidence of guilt. The defendant is entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.

Tarver commented that this case was brought as part of Project Safe Childhood, which is a nationwide U.S. Department of Justice initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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 identify and rescue victims.

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Firearms Industry Matches ATF Reward in Woodstock Firearms Theft

The National Shooting Sports Foundation (NSSF) -- the trade association for the firearms industry -- has announced a $5,000 reward for information leading to the arrest and/or conviction of those responsible for the recent theft of 24 firearms from Pannell's Firearms, located at 10102 Main Street in Woodstock, Ga. The case is being jointly investigated by ATF special agents and Cherokee Sheriff's Office (CSO) investigators. The NSSF reward offer matches a $5,000 reward offered by the Bureau of Alcohol, Tobacco, Firearms and Explosives.

Steve Sanetti, president of the NSSF, said, "Our matching reward offer will hopefully help assist ATF and local law enforcement in solving this crime against a federally licensed firearms dealer and lead to the swift recovery of stolen firearms before they can enter the illegal underground black market where they can be misused to commit violent crimes."

The matching reward payment by NSSF will be granted only following payment of the initial ATF reward, which is up to $5,000 for information leading to the arrest and conviction of those responsible for the crime.

Investigators are seeking the public's help with identifying the suspects and providing information on the location of any of the stolen firearms. Anyone with information is encouraged to call ATF's toll-free, 24-hour hotline at 1-888-ATF-TIPS (1-888-283-8477) or the Cherokee Sheriff's Office Criminal Investigations Division at 770-928-0239. Callers can remain anonymous.

For any questions about the theft of these firearms, please contact ATF at the numbers listed above.

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Reward Offered for Information on Retail Gun Theft

/PRNewswire/ -- The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Atlanta Field Division today (May 6) announced a reward of up to $5,000 for information leading to the arrest and/or conviction of those responsible for a recent firearms theft at Pannell's Firearms, located at 10102 Main Street in Woodstock, Ga. The case is being jointly investigated by ATF special agents and Cherokee Sheriff's Office (CSO) investigators.

The early morning burglary occurred at Pannell's Firearms and Range, a federal firearms licensee (FFL), on Tuesday, April 27. Store security video shows two subjects approaching the business at 3:15 a.m. Once inside, they are seen smashing glass countertops and placing firearms into bags before fleeing the area. In approximately one minute, the suspects were able to steal a total of 24 firearms.

"Investigating firearms thefts from federally licensed gun dealers is a top priority for ATF," said Special Agent in Charge Gregory Gant. "We all have a vested interest in arresting those responsible and recovering these stolen guns. Solving this crime will be a team effort among ATF, the Cherokee Sheriff's Office and concerned members of the public."

Sheriff Roger Garrison said, "We are pleased that ATF has offered a reward to assist in this investigation. I strongly encourage anyone with any information related to this incident or the suspects involved to come forward."

Investigators are seeking the public's help with identifying the suspects and providing information on the location of any of the stolen firearms. Anyone with information is encouraged to call ATF's toll-free, 24-hour hotline at 1-888-ATF-TIPS (1-888-283-8477) or the Cherokee Sheriff's Office Criminal Investigations Division at 770-928-0239. Callers can remain anonymous.

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Georgia Food Equipment Hardware Manufacturer and Its Former President Agree to Plead Guilty to Customer Allocation Conspiracy

/PRNewswire/ -- A New York corporation, whose principal place of business is Newnan, Ga., and its former president have agreed to plead guilty to conspiring to allocate customers for the sale of food service equipment hardware, including walk-in refrigeration equipment, the Department of Justice today announced.

According to a one-count felony charge filed in U.S. District Court in Atlanta, Kason Industries Inc. and Peter A. Katz, its former president, participated in a conspiracy to allocate customers for food service equipment hardware sold in the United States and elsewhere from December 2004 until at least December 2008. The department said that the purpose of the charged conspiracy was to reduce and eliminate competition in the sale of the food service equipment hardware manufactured or sold by Kason Industries, Katz and their co-conspirators.

Food service equipment hardware includes fabricated parts, such as cafeteria hardware, equipment legs and casters, and fabrication supplies, and walk-in refrigeration components, such as metal racks, door hinges, handles, latches, closers and panel fasteners. According to the plea agreements, which are subject to court approval, Kason Industries and Katz have agreed to cooperate with the department's ongoing antitrust investigation.

According to court documents, Katz and co-conspirators agreed during meetings and telephone and e-mail discussions to allocate customers of food service equipment hardware; not to compete for one another's protected customers or to submit intentionally high prices or bids to certain customers; to exchange prices to customers so as not to undercut one another's prices; and to sell food service equipment hardware at collusive and noncompetitive prices.

Kason Industries and Katz are each charged with allocating customers in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million fine for individuals and a $100 million fine for corporations. The maximum fines may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either of those amounts is greater than the statutory maximum fines.

Today's charge is the first to arise from an ongoing federal antitrust investigation of customer allocation in the food service equipment hardware industry. The investigation is being conducted by the Antitrust Division's Atlanta Field Office and the FBI's Atlanta Office.

Anyone with information concerning customer allocation or other anti-competitive conduct in the food service equipment hardware industry should contact the Antitrust Division's Atlanta Field Office at 404-331-7100 or visit www.justice.gov/atr/contact/newcase.htm.

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Former Mortgage Broker Sentenced to 25 Years in Prison in Multiple Mortgage Fraud Schemes Worth $23 Million

EDWARD WILLIAM FARLEY, 47, of Hoschton, Georgia, was sentenced today by United States District Judge Timothy C. Batten, Sr. to serve 25 years in federal prison on charges of bank fraud and conspiracy involving mortgage fraud, a real estate investment “Ponzi” scheme with over 100 victims, a check-kiting scheme, and bankruptcy fraud. WALTER JULIUS HERMANN, 41, of Dunwoody, Georgia, was also sentenced by Judge Batten to serve over two years in federal prison on charge of bank fraud involving real estate appraisals he submitted in the FARLEY mortgage fraud scheme.

United States Attorney Sally Quillian Yates said, “Not only did these different mortgage fraud schemes cause the lenders to suffer cash losses of $23 million, they contributed to the losses that many homeowners and communities have experienced because of the blight of empty houses. Homeowners think someone new is moving in, their houses will keep their value, and their community is growing. But just the opposite happens. Flipped houses turn into eyesores and the neighborhood quickly suffers. This creative mortgage fraudster is now going to federal prison.”

Brian Lamkin, Special Agent in Charge, FBI Atlanta, said, “While justice is served in the sentencing of Mr. Farley and his associates to federal prison, over a hundred victims suffering large monetary losses remain. Mr. Farley’s greed was far reaching in that he crossed over into several schemes to defraud. The mortgage fraud scheme run by Mr. Farley relied on others to pull off the scam, but he relied on the complete and ill-placed trust of the victims in an aggressive real estate Ponzi scheme offering investors high rates of returns. The FBI is pleased in the role that it played in removing from society these few individuals that preyed on so many.”

FARLEY was sentenced to 25 years in prison to be followed by five years of supervised release, and ordered to pay restitution of $24,131,857. FARLEY pleaded guilty to these charges on November 5, 2009.

HERMANN was sentenced to two years and nine months in prison to be followed by five years of supervised release, and ordered to pay restitution of $2,023,077. HERMANN was also prohibited from requesting reinstatement of his appraiser’s license during his prison sentence or during his supervised release. HERMANN pleaded guilty to this charge on December 16, 2009. There is no parole in the federal system.

According to United States Attorney Yates, the charges and other information presented in court: FARLEY, a former mortgage broker, operated through “Creative Home Search,” “Southern Land Partners,” “Georgia Land Group,” and “Global Mortgage” in Dunwoody and Norcross, Georgia, to defraud mortgage lenders through same-day “flips” of properties located in Buford, College Park, Conyers, Cumming, Dacula, Grayson, Lawrenceville, Lithonia, Norcross, Marietta, Roswell, Snellville, and Suwanee.

FARLEY paid appraiser HERMANN to fraudulently inflate the value of each property by $50,000 to $100,000, and recruited often unqualified investor/borrowers to purchase them from one of his companies. The loan applications of these investor/borrowers were often supported by false income, employment, bank deposits, bank statements, W2’s and/or leases. However, as is common with “flips,” FARLEY did not purchase the properties he was selling to the investors/borrowers until after the fraudulently obtained loan proceeds on the “second” “subsequent” purchase had been disbursed. During the “first” purchase, he purchased the properties for up to $100,000 less than the amount of the inflated mortgage loans he had arranged for the investor/borrowers in the “second” purchase. As a result of the defendant’s lies and manipulations, the lenders lost millions of dollars in this flip scheme.

In a separate real estate investment/Ponzi scheme, FARLEY operated under the name “Alliance Resource Management” (“ARM”) in Lawrenceville, Georgia, to conceal his new source of income from prior victims. He falsely represented that ARM was in the business of purchasing primarily residential properties which were being renovated and sold at a profit, when in reality ARM had insufficient equity and income to do so. Real estate investors and lenders, including private investors, corporate lenders, and banks were induced to participate through FARLEY’s false promises that their investments and loans were fully secured by a first security position in property, plus a personal guarantee, and sometimes title insurance. FARLEY also provided promissory notes falsely promising those ARM lenders an interest rate between 14 percent to 60 percent. The same property was used to “fully secure” multiple investors and lenders, causing losses in excess of $20 million. As is common in such Ponzi schemes, FARLEY made repayments to early victims from scheme proceeds generated from newer investors and lenders.

FARLEY also fraudulently obtained $1.2 million from Washington Mutual Bank in a check kiting scheme by transferring funds he did not have among several ARM bank accounts, and withdrawing scheme proceeds before the “insufficient funds” checks were returned. He then used $400,000 in investor funds solicited for property refinance loans to address his check-kiting problem. The evidence also showed that FARLEY diverted assets of ARM to himself after a bankruptcy petition was filed, and concealed that diversion from the United States Bankruptcy Court and ARM creditors.

A co-defendant related to FARLEY’s Ponzi scheme, TRENT EDWARD WRIGHT, 38, of Cumming, Georgia, was a real estate closing attorney used by FARLEY in his scheme to issue title policies without paying off prior security holders. WRIGHT pleaded guilty to mail fraud on December 17, 2009, and was sentenced on March 12, 2010, by Judge Batten to serve one year and nine months in prison, to followed by three years supervised release, and ordered to pay restitution of $2,409,760.

These cases were investigated by special agents of the Federal Bureau of Investigation with the assistance of the Office of the United States Trustee.

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Lawrenceville Man Arrested for Armed Bank Robbery

Special Agent in Charge (SAC) Brian Lamkin, FBI Atlanta, announces the arrest today of Christopher Watts, also known as Christopher Kanusie, age 24, of Lawrenceville, Georgia, in connection with today’s armed robbery of the Bank of America, located at 615 Pike Street, Lawrenceville, Georgia.

On Monday, May 3, 2010, at approximately 10:30 a.m., a lone black male entered the above Bank of America branch and presented tellers with a detailed demand note announcing a robbery. The lone male robber then made his way to the branch manager’s office wherein he brandished a handgun and made further demands for money. Units from the Lawrenceville Police Department responding to the bank arrived to find Christopher Watts, aka Christopher Kanusie, a native of Liberia, still in the bank lobby brandishing the handgun. Watts was taken into custody without incident and turned over to special agents of the Federal Bureau of Investigation. Watts is being charged federally with one count of bank robbery and one count of using a weapon in the commission of a crime.

Watts will appear before a U.S. Magistrate Judge for his initial appearance on Tuesday, May 4, 2010 in Atlanta, Georgia.

The public should be reminded that all persons are presumed innocent until proven guilty in a court of law.

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Northeast Georgia Man Pleads Guilty to His Role in Internet Child Molestation

GREGORY HUNTER, 50, of Mt. Airy, Georgia, pleaded guilty today (April 30) in federal court in Gainesville, Georgia, to coercing a 9-year-old girl to engage in sexually explicit conduct before a webcam for the purpose of transmitting a live depiction of the child and the graphic images over the Internet.

United States Attorney Sally Quillian Yates said, “This defendant conspired with the stepfather of a 9-year-old to have the child engage in sexually explicit conduct before a webcam. Our children deserve our protection, and those who abuse and prey on children deserve to go to prison.”

Brian D. Lamkin, Special Agent in Charge, FBI Atlanta, said, “The national investigation which uncovered the victimization of this 9-year-old child as well as child predator Gregory Hunter reminds us that the Internet can be a dangerous place in that it provides access by these predators to our children. The FBI has many agents throughout the country dedicated to working with their local and state law enforcement partners regarding crimes against children matters and the value of the information sharing process in these investigations cannot be overstated.”

According to United States Attorney Yates and information presented in court: A national FBI child pornography investigation initiated in Oklahoma between 2008 and 2009 led agents to a number of subjects across the country, including HUNTER. Based on evidence gathered during the investigation, a federal search warrant was executed at HUNTER's home on February 3, 2009, and HUNTER was arrested. HUNTER acknowledged that in 2008 he began communicating via the Internet with a man in California regarding child pornography. The California man ultimately offered that his own stepdaughter, who at the time was 9 years old, was available for live, sexually explicit performances before a webcam in his home. On numerous occasions over the course of the next three months, HUNTER conspired with the stepfather to persuade and induce the girl to engage in sexually explicit conduct for the purpose of a live webcam session that he transmitted over the internet to HUNTER. During the sessions, HUNTER repeatedly made graphic requests of the girl and on at least one occasion suggested that the stepfather get the child “a little drunk” and engage in sexual intercourse with her.

In August 2009, in Sacramento, California, the stepfather was sentenced to 30 years in prison following his convictions in federal district court for producing, transporting, and possessing child pornography.

HUNTER is scheduled to be sentenced by United States District Court Judge Richard W. Story, who has not yet set a date for the sentencing hearing. HUNTER faces a maximum sentence of 30 years in prison and a maximum fine of $250,000. In determining the actual sentence, the court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.

This case is being investigated by special agents of the FBI.

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