Seeking Assistance in Locating Armed Serial Bank Robber

Special Agent in Charge (SAC) Brian D. Lamkin, FBI Atlanta, requests the assistance of the public in identifying and locating two armed bank robbers responsible for the July 27 armed robbery of the Wachovia Bank, located at 2725 Clairmont Road, Atlanta, Georgia (Dekalb County).

On Tuesday, July 27, 2010, at 10:44 a.m. two black males entered the Wachovia Bank, 2725 Clairmont Road, and announced a robbery. Robber #1 jumped the teller counter with a blue canvass bag and obtained an undisclosed amount of money from the teller stations. Robber #2, brandishing a silver semi automatic handgun, remained in the lobby of the bank and ordered customers to the ground. Both robbers departed the bank shortly thereafter without further incident.

The robbers are described as follows:

Robber #1: Black male, 20-30 years in age, wearing a short black wig, glasses and t-shirt.

Robber#2: Black male, 20-25 years in age, wearing a shoulder length wig, black in color, cammo shorts, timberlake style boots, stocky build, brandishing a silver semi auto handgun.

The robbers are believed to be traveling in a 2005 Toyota Corolla, grey in color, bearing Georgia license plate BIG-9533. This vehicle was stolen in a carjacking on 7/26/10 at 3:10 a.m. in the 4000 block of Treecrest Parkway (Crestview Apartments), Dekalb County, Georgia.

Anyone with information regarding this matter should contact the FBI Atlanta office at tel. (404) 679-9000.

-----
Community News You Can Use
www.fayettefrontpage.com
Fayette Front Page
www.georgiafrontpage.com
Georgia Front Page
Follow us on Twitter:  @GAFrontPage

Georgia Woman Imprisoned for 18 Months for Mortgage Fraud

The United States Attorney’s Office for the Middle District of Pennsylvania announced that an Atlanta, Georgia resident was sentenced to 18 months in federal prison by Senior U.S. District Court Judge William J. Nealon for her role in a Luzerne County mortgage fraud scheme in 2005 and 2006.

According to United States Attorney Peter J. Smith, Nancy Barlet, age 52, previously pleaded guilty to a charge of mail fraud as an aider and abettor. Barlet admitted to providing false employment and income information on mortgage applications for numerous properties in the Wilkes-Barre area in 2005 and 2006. The fraud involved mortgages worth more than $400,000.

Barlet was charged in a criminal information filed by the United States Attorney’s Office in October 2008. The charge resulted from an investigation by the Federal Bureau of Investigation and Wilkes-Barre Police.

Judge Nealon also ordered Barlet to serve three years of supervised release following her prison sentence, and pay a special assessment of $100. The amount of restitution will be determined within 90 days.

-----
www.fayettefrontpage.com
Fayette Front Page
www.georgiafrontpage.com
Georgia Front Page
Follow us on Twitter:  @GAFrontPage

Atlanta Man Pleads Guilty to Obtaining $315,000 Through “Advance Fee” Wire Fraud Scheme

A 59-year-old Atlanta man, Kenneth Lane Milstead, has pled guilty to one count of wire fraud for obtaining $315,080.25 through an “advance fee” scheme in which he promised—but never made—loans to potential borrowers across the United States from 2005 to 2008, U.S. Attorney Ronald C. Machen Jr. and Shawn Henry, Assistant Director of the FBI’s Washington Field Office, announced today.

Milstead entered his guilty plea July 22 before the Honorable Rosemary M. Collyer, in the U.S. District Court for the District of Columbia. When he is sentenced on September 24, 2010, he faces up to 20 years of imprisonment under the statute, and a likely sentencing range of 37 to 46 months in prison under the sentencing guidelines. As part of his plea agreement, Milstead agreed to make restitution, and to forfeit a money judgment, in the amount of $315,080.25. According to the government’s evidence, as part of the scheme to defraud, Milstead portrayed himself, at different times, as three different non-existent top corporate executives:

* as “Franklin Lane,” CEO of Franklin Investments, in Atlanta.
* as “Lance Edwards,” CEO of Edwards Capital Group, in Washington D.C.
* as “Kenneth Martin,” Chairman of the Board of KLMEEI, in Boston.

The evidence showed that these companies were “shell companies,” which had actual websites and bank accounts, but only “virtual” offices, and corporate staff who did not exist. The evidence showed that Milstead would approach potential borrowers on line (on venture capital websites), and offer to make substantial loans (usually $1 million) to them, but first requiring that they send him “earnest money” (usually $10,000, and sometimes a second payment). In all, 28 victims—small businessmen/women—made 40 payments, but Milstead never sent any individual borrower any investment capital loan, and instead provided a series of excuses as to why the loan was delayed, and refused to return the “earnest money.”

As a further part of the scheme, Milstead convinced one person to work as the purported Secretary-Treasurer of Edwards Capital Group, and to then take various actions that (unknown to the person) furthered the scheme, including opening a bank account and four credit cards using the person’s personal information (date of birth, social security number), resulting in credit card expenditures more than $100,000 in furtherance of the scheme and charged against the person individually and the credit card companies.

In a search warrant at the time of arrest, of a storage facility connected with Milstead’s residence in Atlanta, the FBI recovered a file, meticulously organized, containing materials relevant to all of the fraudulent loan transactions by “Franklin Lane,” “Lance Edwards,” and “Kenneth Martin.”

In announcing the guilty plea, U.S. Attorney Machen praised the work of the FBI agents on the case. He also acknowledged the efforts of several U.S. Attorney’s Office support staff personnel—Paralegal Specialist Diane Hayes, Legal Assistant Jamasee Lucas, SEEP Student Sierra Tate, and former auditor Robert Jodoin—as well as Assistant U.S. Attorneys Diane Lucas, who assisted with the forfeiture aspect of the case, and Daniel Friedman, who is handling this prosecution.

-----
www.fayettefrontpage.com
Fayette Front Page
www.georgiafrontpage.com
Georgia Front Page
Follow us on Twitter:  @GAFrontPage

Crime Stoppers Atlanta Launches New Interactive Website

/PRNewswire/ -- Crime Stoppers Atlanta announced the launch of a new website, www.CrimeStoppersAtlanta.org , to engage metro Atlanta citizens through social media tools and provide them with a comprehensive source of information to help keep their communities safe. The new website extends the reach of law enforcement and helps foster communication with the public to further metro-wide efforts to get criminals off the streets and behind bars.

"The Crime Stoppers Atlanta website enables us to engage the community in a new way," said Miguel Sepulveda, Director of Crime Stoppers Atlanta. "Crime Stoppers Atlanta, in the past, has relied on TV, radio and billboards to reach the community. Now we can connect directly with residents where they spend much of their time - online and on social networks."

Through the new interactive platform, citizens can browse an online database of wanted criminals and unsolved cases, share the information to alert friends and followers on Facebook and Twitter and submit anonymous tips to help investigators solve crimes and capture fugitives with a click of a button. Additionally, featured articles written by industry experts provide site visitors with advice on how to best protect themselves, their families, homes and valuables.

Community members also can contribute to the Crime Stoppers Atlanta reward fund via the site, increasing the incentive for knowledgeable residents to offer up tips that could ultimately save lives. Other features of the site include a Crime Stoppers Atlanta newsletter, links to participating law enforcement agencies throughout metro Atlanta and a tribute to sponsors of the program and its initiatives.

"Crime Stoppers Atlanta has become an important tool for law enforcement in metro Atlanta," said Atlanta Police Chief George Turner. "Solving crimes takes more than just police - it's a collaboration with the community. Crime Stoppers provides an important portal for people to offer anonymous information, and this new website will greatly increase our efforts at establishing a true crime-fighting partnership."

Community members can follow Crime Stoppers Atlanta on Twitter, @StopCrimeATL, and Facebook, http://www.facebook.com/pages/Crime-Stoppers-Atlanta, or search for the latest popularly voted news on DIGG.

Crime Stoppers Atlanta has proven an effective tool for law enforcement to identify and apprehend wanted criminals. Since its inception in 2007, Crime Stoppers Atlanta has helped investigators close more than 191 cases and put more than 139 criminals behind bars.

Information on unsolved crimes or wanted criminals can be submitted anonymously to the Crime Stoppers Atlanta tip line at 404-577-TIPS (8477), online www.crimestoppersatlanta.org or by texting CSA and the tip to CRIMES (274637). Providing an anonymous tip could result in a reward of up to $2,000.

For more information on Crime Stoppers visit www.crimestoppersatlanta.org.

-----
www.fayettefrontpage.com
Fayette Front Page
www.georgiafrontpage.com
Georgia Front Page
Follow us on Twitter:  @GAFrontPage

Former Police Officer Convicted of Witness Tampering and Obstruction of Justice

A jury in federal district court has returned a guilty verdict against MARK HOWELL SPARKS, 40, of Felton, Georgia on charges of witness tampering, obstruction of justice, and possession of a motor vehicle with an altered vehicle identification number (VIN).

“The defendant was a police officer who encouraged a witness to withhold information about criminal activity from law enforcement authorities,” said United States Attorney Sally Quillian Yates. “He also obstructed a criminal investigation by tipping off targets of the investigation that the witness was wearing a recording device. The defendant was trying to protect friends who he knew were involved in criminal activity. But the citizens of Polk County employed the defendant as a police officer to protect them from the criminals, not for him to protect the criminals from the police. The defendant now faces time in federal prison for tampering with a witness and obstructing justice.”

According to United States Attorney Yates, the charges and other information presented in court, in June and July 2008, SPARKS was the supervisor of the detective squad at the Polk County Police Department when an investigation into chop shop activity in Polk County was opened by the FBI and the Polk County Police Department. SPARKS was directly involved in the investigation. SPARKS was personally acquainted with several of the potential targets of the investigation. Early on in the investigation SPARKS tipped off an individual that a search warrant was going to be executed at his residence and that detectives were looking for vehicles with altered vehicle identification numbers that the individual had sold to others. SPARKS later convinced the same individual to talk to FBI agents and Polk County detectives about the primary target of the investigation being involved in chop shop activity, but at the same time the individual was to withhold information he knew about SPARKS’ friends who were also operating chop shops. SPARKS did so in an effort to derail the investigation against his friends. Based upon Sparks’ encouragement, the individual told the FBI and Polk County detectives about chop shop activity committed by one specific target, but intentionally withheld information about other targets.

The individual agreed to wear a recording device in an effort to gather evidence against the one target about whom he provided information. Later SPARKS obstructed the investigation by telling other targets of the investigation that the individual was recording conversations and that they should not talk to him. When the individual learned that SPARKS was telling others that the individual was cooperating and wearing a recording device, the individual told FBI agents and Polk County detectives the truth about SPARKS’ efforts to obstruct the investigation.

Also evidence was presented that established that during the time that SPARKS was a police officer he knowingly drove a stolen Chevrolet pick up truck that had an altered VIN plate. When SPARKS was arrested on October 6, 2009, he confessed to driving the pick up truck knowing that it was stolen and knowing that it had an altered VIN. SPARKS resigned from the Polk County Police Department in October, 2009.

The jury acquitted SPARKS on charges that he maintained a chop shop and possessed motor vehicle parts with obliterated or removed VINs.

SPARKS was indicted on these charges on March 23, 2010.

SPARKS could receive a maximum sentence of 10 years in prison and a fine of up to $250,000 on each of the witness tampering and possession of a motor vehicle with an altered VIN charges and a maximum sentence of five years in prison and a $250,000 on the obstruction of justice charge. Sentencing is scheduled for Friday October 1, 2010 at 1:30 p.m. before United States District Judge Harold L. Murphy. 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 was investigated by special agents of the Federal Bureau of Investigation, police officers with the Polk County Police Department, and law enforcement officers with the Northwest Georgia Criminal Enterprise Task Force.

------
www.fayettefrontpage.com
Fayette Front Page
www.georgiafrontpage.com
Georgia Front Page
Follow us on Twitter:  @GAFrontPage

Atlanta Man Faces Charges for Sex Trafficking Three Juveniles

DEMETRIUS DARNELL HOMER, 29, of Atlanta, Georgia, has been arrested and was arraigned July 22 on federal charges of sex trafficking of three juveniles. HOMER was indicted by a federal grand jury on July 13, 2010. HOMER was arraigned before United States Magistrate Judge Gerrilyn Brill who ordered HOMER detained.

United States Attorney Sally Quillian Yates said of the case, “This defendant allegedly recruited very young girls and turned them into prostitutes, robbing them of their youth, their dignity, and their freedom. Vigorously prosecuting those who exploit children and young women is a top priority for our office.”

FBI Atlanta Special Agent in Charge Brian D. Lamkin said, “The FBI has responded to the serious problem of sex trafficking of juveniles by establishing a federally funded task force that understands the problem and, in turn, works with area law enforcement agencies in targeting predators that exploit juveniles by recruiting or forcing them into the world of prostitution. The FBI is proud of the role it plays in making the streets safer for its youth and encourages the public to contact the Atlanta office FBI with any information regarding such heinous activities as child prostitution.”

According to United States Attorney Yates, the charges and other information presented in court: HOMER faces three counts of sex trafficking relating to three different juveniles, identified in court documents as under the age of 18. According to the indictment, from January 2009 through at least November 2009, HOMER recruited, enticed, harbored, transported, provided, obtained, and maintained three different juvenile females for prostitution. In the case of one victim, HOMER is also charged with using force, fraud, and coercion to cause her to engage in prostitution.

Two of the charges carry a mandatory minimum of 10 years in prison and the third charge carries a mandatory minimum of 15 years in prison, with all charges having a maximum sentence of life in prison and a fine of up to $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.

The government proffered evidence that he had assaulted at least one victim on multiple occasions in the past, and pulled a gun on another young woman with whom he was involved. The court noted HOMER’s history of violence, his extensive arrest and conviction record, the nature of the offenses charged and the possibility of violence against the victims if he was released in ordering HOMER detained without bond.

Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government's burden to prove the defendant's guilt beyond a reasonable doubt at trial.

This case is being investigated by Special Agents of the Federal Bureau of Investigation with assistance from the FBI's Metro Atlanta Child Exploitation Task Force including Atlanta Police Department, Gwinnett County Police Department, City of Marietta Police Department, and Sandy Springs Police Department. If anyone has any information about human trafficking, they are encouraged to report the information to the Federal Bureau of Investigation at 404-679-9000.

-----
www.fayettefrontpage.com
Fayette Front Page
www.georgiafrontpage.com
Georgia Front Page
Follow us on Twitter:  @GAFrontPage

Former Fulton County Deputy Sheriff Pleads Guilty to Corruption and Drug Offenses

ANTHONY C. ATWATER, 33, of Atlanta, Georgia, pleaded guilty July 21 in United States District Court to corruption and drug offenses related to a scheme to provide protection to people identified to him as drug dealers.

United States Attorney Sally Quillian Yates said, “This former deputy took money to protect men he thought were drug dealers at the expense of the public he was sworn to protect. He even wore his sheriff’s uniform and weapon while witnessing and protecting what he believed to be a major cocaine deal. Today he admitted he is guilty of this reprehensible conduct.”

FBI Atlanta Special Agent in Charge Brian D. Lamkin said, “Maintaining the public trust is paramount for law enforcement and government entities in order to function as needed. As such, the FBI places a high priority on public corruption investigations. Rogue and corrupt conduct such as former Fulton County Deputy Sheriff Atwater’s, if left unchecked, undermines that much valued public trust and make the work of other law enforcement officers much more difficult. The FBI encourages anyone with information regarding public corruption to contact the Atlanta office FBI.”

Fulton County Sheriff Ted Jackson said, “Most law enforcement officers take pride in wearing the badge and have a clear sense of duty and honor. However, when one who has taken the oath to serve and protect violates the law, it tarnishes and damages the reputations of those who are committed to doing the right thing. The Fulton County Sheriff's Office has been aware of this investigation this since January and cooperated fully with the FBI. This collaboration between the Fulton County Sheriff's Office and the FBI will continue. The crimes of this individual should not reflect upon the many men and women who put their lives on the line for public safety on a daily basis.”

According to United States Attorney Yates, the charges and other information presented in court: Between January and March 2010, ATWATER, in exchange for $4,000 in cash payoffs, used his position as a sheriff's deputy to provide armed protection for alleged drug dealers. The alleged drug dealers were in fact undercover FBI special agents. ATWATER provided armed protection for alleged shipments of cocaine on January 23, 2010, and March 12, 2010. During the alleged drug deals, ATWATER, while wearing his Fulton County Sheriff's Department uniform, accompanied the alleged “drug dealers” to meetings with alleged drug suppliers and provided armed protection against robbery from outsiders or competing drug dealers. ATWATER also agreed to assist the alleged drug dealers in the event they were stopped by law enforcement officers.

ATWATER was indicted on the charges on April 6, 2010. Today he pleaded guilty to attempting to aid and abet the possession of cocaine with the intent to distribute, and accepting corrupt payments. ATWATER could receive a maximum sentence of up to 40 years in prison on the drug count and up to 20 years in prison on the corruption count, and a fine of up to $2,000,000 on the drug count and up to $250,000 on the corruption count. In determining the actual sentence, the court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for many offenders.

Sentencing is scheduled for October 20, 2010 at 10:30 a.m., before United States District Judge Owen B. Forrester.

The U.S. Attorney's Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.

This case is being investigated by Special Agents of the Federal Bureau of Investigation.

-----
www.fayettefrontpage.com
Fayette Front Page
www.georgiafrontpage.com
Georgia Front Page
Follow us on Twitter:  @GAFrontPage

Georgia Man Sentenced to 20 Years in Prison for Production of Child Pornography Using Hidden Videos in Store Bathrooms

/PRNewswire/ -- Jeffrey Alan Wasley of Kennesaw, Ga., was sentenced today to 20 years in prison for producing child pornography through the surreptitious videotaping of young boys using public restrooms in Atlanta-area establishments, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney for the Northern District of Georgia Sally Quillian Yates.

Wasley pleaded guilty to production of child pornography before U.S. District Court Judge Clarence Cooper on March 16, 2010. According to court documents and proceedings, Wasley was a church youth counselor and former performing magician who followed young boys in retail stores and children's attractions. Wasley admitted that when he observed young boys entering a restroom unaccompanied by an adult, he would also enter and secretly videotape the boys.

As described in court documents, in July 2008, Wasley victimized five and seven year-old brothers in the men's restroom of a store in Kennesaw, according to information filed with the court and discussed at the plea hearing. These boys reported Wasley's conduct to their mother, who in turn notified store security. According to court documents, store security and Cobb County police were able to identify a likely suspect from store surveillance footage. When store security observed this same individual in the store several days later, they followed him to his car and noted his car's tag number, which was linked to Wasley. A subsequent search of Wasley's home yielded a computer containing six videos Wasley admitted he produced of boys in public restrooms, along with thousands of additional images of child pornography that Wasley had downloaded from the Internet.

-----
www.fayettefrontpage.com
Fayette Front Page
www.georgiafrontpage.com
Georgia Front Page
Follow us on Twitter:  @GAFrontPage

Former Grady Hospital Emergency Room Doctor Sentenced to Over 26 Years in Child Exploitation Case

DR. ADAM WAYNE LEBOWITZ, 50, of Decatur, Georgia, was sentenced July 12 by United States District Judge Richard W. Story on charges of producing child pornography and attempting to coerce and entice a minor to engage in unlawful sex acts. LEBOWITZ was convicted of the charges by a jury on February 25, 2010, after a seven-day trial.

United States Attorney Sally Quillian Yates said of the sentence, “As a doctor, this defendant took an oath to ‘never do harm’ to anyone. He not only violated that oath, he sexually violated children and then published his violation on the Internet, victimizing the children each time the videos were viewed. His long term of incarceration ensures that he will no longer threaten another child.”

FBI Atlanta Special Agent in Charge Brian D. Lamkin said, “Today's sentencing should remind us all that child predators come from all walks of life and efforts to offer profiles of such individuals to a concerned public are elusive at best for this very reason. The investigation and resulting successful prosecution of Mr. Lebowitz also serves as a good example of the need for parents to not only remain vigilant but to report suspicious activities to law enforcement authorities in order to protect their children from such predators.”

Coweta County Sheriff Michael Yeager said, “I appreciate a lot of hard work by many agencies to bring this case to a successful conclusion. Parents, get involved and stay involved with your children. Know where they are and who they are in contact with. As long as individuals like this continue to prey on our youth, law enforcement will be there to put them away, hopefully for a long time.”

LEBOWITZ was sentenced to 26 years and eight months in federal prison. He was also ordered to have no contact with victims in the case, and must register as a sex offender upon release from prison.

According to United States Attorney Yates, and the evidence presented in court at his trial: LEBOWITZ came to the attention of law enforcement officers at the Coweta County Sheriff’s Office on October 26, 2006, after a victim, a 15-year-old boy, received a series of e-mails and sexually graphic instant messages from LEBOWITZ. The victim’s mother contacted the sheriff’s office and reported these online messages sent by LEBOWITZ to her son. The sheriff's office then began an undercover investigation of LEBOWITZ that culminated in his arrest in the driveway of the victim’s home on November 2, 2006. Evidence at trial showed LEBOWITZ had multiple condoms and sexual lubricants inside his vehicle at the time of his arrest, and had planned to transport the victim to LEBOWITZ’s home in Decatur, Georgia.

Following the arrest, the sheriff’s office obtained and executed a search warrant of LEBOWITZ’s home. During the search, investigators seized three computers, two of which contained video recordings of LEBOWITZ engaged in sex acts with two young boys. Members of the FBI’s Safe Child Task Force identified the victims in the video recordings and contacted them. Both victims revealed that LEBOWITZ had recorded himself engaged in graphic sex acts with these victims when both were minors. An examination of LEBOWITZ’s computers, performed by the Georgia Bureau of Investigation (GBI), revealed that LEBOWITZ had sent images from his recordings of the two young victims over the Internet. He was indicted on the charges on June 12, 2007, and a superseding indictment was filed on February 9, 2010.

This case was brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney's Offices around the country, Project Safe Childhood marshals federal, state, and local resources to apprehend and prosecute individuals who exploit children via the Internet. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

This case was investigated by members of the FBI’s Safe Child Task Force, the Coweta County Sheriff’s Office, the Clayton County Police Department, and the Georgia Bureau of Investigation (GBI), with valuable assistance from U.S. Immigration and Customs Enforcement’s Computer Forensics Division. Assistance in this case was also provided by the Coweta County District Attorney’s Office.

-----
www.fayettefrontpage.com
Fayette Front Page
www.georgiafrontpage.com
Georgia Front Page
Follow us on Twitter:  @GAFrontPage

Disbarred Attorney Sentenced to Federal Prison for Defrauding Elderly Clients

M. DEWEY BAIN, 59, of Sugar Hill, Georgia, was sentenced today by United States District Judge Thomas W. Thrash, Jr. to serve over five years in federal prison for defrauding his clients of over $4.3 million in trust funds that he had misrepresented were in safe investments earning good returns but which in fact he had stolen.

United States Attorney Sally Quillian Yates said of the case, “This defendant, an attorney formerly licensed in Georgia and Texas, entered into trust agreements with elderly victims, told them that he was placing their money in safe investments, and then lost it all—over $4.3 million in retirement savings and inheritance money—after diverting it to his own personal and business use. His shameful abuse of trust has now landed him in federal prison.”

Reginald G. Moore, United States Secret Service Special Agent in Charge, said, “The Secret Service takes an aggressive approach to the prevention and investigation of con artists who prey upon innocent victims by promising future large financial gain for a small initial investment. This case demonstrates the wide-reaching effects of bogus financial and real estate schemes, the impact on innocent victims, and the importance of cooperation among our law enforcement partners.”

BAIN was sentenced to five years and three months in prison, to be followed by three years of supervised release, and was ordered to pay $4,354,000 in restitution to his victims. BAIN pleaded guilty to the charge of wire fraud on April 6, 2010. BAIN was disbarred in Georgia in October 2009.

According to United States Attorney Yates, the charges and other information presented in court: Between May 2006 and March 2009, BAIN, an attorney formerly licensed in Georgia and Texas, stole over $4.3 million of his clients’ money based on a fraudulent trust scheme. He entered into trust agreements with the defrauded clients, many of whom were elderly, and agreed to act as their financial advisor and invest their retirement savings and inheritances in safe accounts, such as certificates of deposit and loans to third parties that were allegedly secured by real estate and other valuable property. During the scheme, however, BAIN diverted their money to pay for his own personal expenses and, without their permission, used it to support his business interests. His business, “DnC Multimedia Corp.,” formerly known as “PlanetLink Communications, Inc.,” later filed for bankruptcy. Through early 2009, BAIN falsely assured his victims that their trust accounts were earning good interest based on the investments, when in fact the accounts had no value by at least February 2009.

As an example, under one of the trust agreements, BAIN originally invested the money of an elderly victim in certificates of deposit and paid her personal expenses out of the trust. He later liquidated the certificates based on false pretenses and moved the money to a bank account in his name. He then used the money in his business, even though she had specifically refused to permit such an investment because it was too risky. He also wrote checks off of her credit card account without her authorization. As the result of BAIN’s fraud, this victim lost nearly $1 million and was no longer able to pay for her assisted living residence. She traveled from another state with family and addressed the court at today’s sentencing.

This case was investigated by special agents of the Federal Bureau of Investigation and the United States Secret Service and by detectives with the Topeka, Kansas Police Department, with the assistance of the Attorney General’s Office for the State of Kansas. The case was referred for criminal prosecution by the Office of the U.S. Trustee in Atlanta, Georgia, as well as by the Atlanta Division Office of the Securities and Exchange Commission.

-----
www.fayettefrontpage.com
Fayette Front Page
www.georgiafrontpage.com
Georgia Front Page
Follow us on Twitter:  @GAFrontPage

Former Officers of Failed Atlanta Bank Plead Guilty to Fraud

Douglas Ballard, 40, pleaded guilty July 6 in federal district court to one count of conspiracy to commit bank fraud and to receive bribes, and to one count of tax evasion; and Joseph Todd Foster, 42, pleaded guilty to securities fraud. Ballard and Foster, both of Atlanta, were senior vice presidents of Integrity Bank, a $1 billion financial institution that failed and was taken over by the Federal Deposit Insurance Corporation (FDIC) in August 2008.

“Among the roots of our nation’s financial crisis were criminal acts by bank insiders and major borrowers that contributed to the failures or bailouts of financial institutions previously believed to be secure,” said U.S. Attorney Sally Quillian Yates. “Today we announce that two of these corrupt insiders here in Atlanta will be trading in their corporate offices for federal prison.”

“Those who line their pockets with profits of bank fraud schemes should know they will not go undetected and they will be held accountable,” said Internal Revenue Service (IRS)-Criminal Investigation Special Agent in Charge Reginael McDaniel. “IRS-Criminal Investigation is proud to be part of the law enforcement dragnet bringing these individuals to justice.”

According to U.S. Attorney Yates, the charges and other information presented in court: Ballard, Integrity Bank’s former executive vice president in charge of lending, admitted that he conspired with the bank’s major customer, co-defendant Guy Mitchell, to receive bribes from Mitchell and to assist Mitchell in receiving millions in loan draws under false pretenses. Ballard admitted in court to receiving over $200,000 in cash and other corrupt payments from Mitchell in exchange for Ballard’s assistance in distributing millions of loan draws. During this same time, Ballard caused Integrity Bank to distribute nearly $20 million in loan proceeds to Mitchell’s personal account, much of which was allegedly used for Mitchell’s personal consumption (including the purchase of a private island in the Bahamas). Mitchell requested and Ballard paid nearly $7 million of these draws out of a construction loan relating specifically to supposed construction and renovation at the “Casa Madrona,” a luxury hotel owned by Mitchell in Sausalito, Calif. The indictment alleges that none of this money was used for construction, and in fact no renovations had occurred.

Foster, Integrity’s former vice president in charge of risk management, pleaded guilty to charges that he committed securities fraud by way of what is commonly referred to as “insider trading.” Specifically, he admitted to having sold nearly all his shares of Integrity’s stock on the basis of material adverse information about the company of which Foster was aware by virtue of his inside position, but of which the public was generally unaware. Specifically, Foster dumped his shares of Integrity stock based on his knowledge that the bank was facing an increasingly substantial but undisclosed risk that its major customer, Mitchell, would default on over $80 million in outstanding loans.

Ballard was indicted in April 2010 on more than 20 counts of bank fraud, receipt of bribes, securities fraud, evasion of currency reporting requirements, and conspiracy. He pleaded guilty to conspiracy and one additional new count of tax evasion. He could receive a maximum sentence of up to 10 years in prison and a fine of up to $500,000. Foster, also indicted in April 2010, was indicted on two counts of securities fraud and today pleaded guilty to one count. He could receive up to 20 years in prison and a fine of up to $5 million. A date for sentencing has not yet been set before U.S. District Judge Julie E. Carnes.

This case is being investigated by Special Agents of the FBI, FDIC-Office of the Inspector General, and the IRS as part of President Barack Obama’s Financial Fraud Enforcement Task Force. The investigation remains ongoing as to other potential misconduct relating to the failure of this major Atlanta bank. Both defendants have agreed to cooperate in that ongoing investigation.

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.

-----
www.fayettefrontpage.com
Fayette Front Page
www.georgiafrontpage.com
Georgia Front Page
Follow us on Twitter:  @GAFrontPage

Fulton County Jailer Sentenced to Six Months on Federal Charges of Excessive Force

DENITA RENAE SHAW, 41, of Smyrna, Georgia, a former Fulton County Sheriff’s Detention Officer was sentenced June 24 by United States District Court Judge Owen J. Forrester to serve six months in federal prison on a felony charge of violating the civil rights of an inmate by using excessive force at the Fulton County Jail.

United States Attorney Sally Quillian Yates said, “This officer violated the Constitution and her oath of office when she assaulted a handcuffed inmate. For this reprehensible conduct, she will now walk in the shoes of her victim by becoming an inmate herself.”

Fulton County Sheriff Theodore Jackson said, “The preservation of an inmate's civil rights is vital to our legal system and while a person is being held at the Fulton County Jail it is crucial for detention officers to respect that. This type of behavior will not be tolerated and we will cooperate fully with federal authorities to punish offenders, no matter who they are.”

SHAW was sentenced to three months in prison, and three months of home confinement to be followed by three years of supervised release, and ordered to perform 120 hours of community service. SHAW pleaded guilty to the charge on February 17, 2010.

According to United States Attorney Yates, the charges and other information presented in court: On January 26, 2009, SHAW, working as a detention officer at the Fulton County Jail, used excessive force when she struck a handcuffed inmate with a milk crate at the Fulton County Jail. SHAW was terminated as a result of the incident.

This case was investigated by Special Agents of the Federal Bureau of Investigation.

-----
www.fayettefrontpage.com
Fayette Front Page
www.georgiafrontpage.com
Georgia Front Page
Follow us on Twitter:  @GAFrontPage

Marietta Man Sentenced to Prison for Receiving Child Pornography

JUSTIN CROY, 25, of Marietta, Georgia, was sentenced June 28 by United States District Judge Charles A. Pannell, Jr. to serve six years in federal prison on a charge of receiving child pornography.

United States Attorney Sally Quillian Yates said of the case, “This defendant possessed a large collection of videos depicting the violent rape, molestation, and exploitation of the most vulnerable among us—our children. This office will continue to work with federal, state, and local law enforcement agencies to prosecute those who choose to use the Internet to proliferate images of the violent sexual assault of children.”

CROY was sentenced to six years in prison to be followed by 10 years of supervised release. CROY was convicted of these charges by a federal jury on March 19, 2010, after a four-day trial.

According to United States Attorney Yates, the charges and other information presented in court: In January 2009, a detective with the Smyrna Police Department was conducting an online, undercover investigation regarding the sexual exploitation of children. During the investigation, the detective received information that someone residing at the defendant's residence was involved with child pornography. In March 2010, officers with the Cobb County Police Department's Crimes Against Children Unit executed a search warrant at CROY's residence and recovered computer equipment that contained over 100 videos of prepubescent children, including infants and toddlers, being sexually assaulted.

The images recovered from CROY's computer equipment were sent to the National Center for Missing and Exploited Children's Victim Identification Program, where many of the children depicted in the images were determined to be known victims of child exploitation. The defendant’s child pornography collection included a video titled “The Pre Teen Toy Story” that provided step-by-step instructions on how to sexually assault infants and toddlers, including tips on how to avoid detection. CROY confessed to authorities that he had downloaded and repeatedly viewed the child pornography.

This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney's Offices around the country, Project Safe Childhood marshals federal, state, and local resources to apprehend, and prosecute individuals who exploit children via the Internet. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

This case was investigated by the Crimes Against Children Unit of the Cobb County Police Department and the Smyrna Police Department.

-----
www.fayettefrontpage.com
Fayette Front Page
www.georgiafrontpage.com
Georgia Front Page
Follow us on Twitter:  @GAFrontPage

Former Dodge County Sheriff and Deputy Sentenced for 2004 Election Fraud

MICHAEL LAWTON DOUGLAS, JR., 38, the former Sheriff of Dodge County, and OLIN NORMAN GIBSON, 44, a former Dodge County Deputy Sheriff, were sentenced June 28 before The Honorable Dudley H. Bowen, Jr., United States District Judge, at the federal courthouse in Dublin, Georgia.

At an earlier change-of-plea hearing, Douglas pled guilty to conspiring to buy votes and to vote more than once in connection with his election in 2004 as Dodge County Sheriff. Gibson pled guilty to buying votes for Douglas during that election. Evidence at the hearing established that Douglas provided money to various supporters, including Gibson, to be used to pay hundreds of voters to vote for him in the election. Douglas’s supporters also paid voters for absentee ballots, and in particular blank absentee ballots, in order to fill those ballots out for Douglas and cast them improperly in the election. Douglas was elected as Dodge County Sheriff in 2004 and served as Sheriff until his re-election campaign was defeated in 2008.

Judge Bowen today sentenced Douglas to 18 months in prison to be followed by a three year term of supervised release. Douglas was additionally ordered to pay a $2,000 fine and complete 150 hours of community service. Gibson received four months in prison, a three year term of supervised release, a $1,000 fine, and 150 hours of community service.

United States Attorney Edward J. Tarver said, “Election fraud strikes at the very heart of our democracy. This office and our law enforcement partners will exercise zero tolerance in our efforts to apprehend and prosecute those who seek to steal or dilute the constitutional rights of citizens in the electoral process.”

U.S. Attorney Tarver recognized the efforts of the Georgia Bureau of Investigation and Federal Bureau of Investigation, and particularly GBI Special Agent Eve Rodgers and FBI Special Agent Ed Sutcliff.

-----
www.fayettefrontpage.com
Fayette Front Page
www.georgiafrontpage.com
Georgia Front Page
Follow us on Twitter:  @GAFrontPage