Georgia Man and Woman Indicted for Defrauding Investors

GEOFFREY A. GISH, 56, of Marietta, Georgia, was arraigned yesterday before United States Magistrate Judge Janet King on charges that he and another individual operated a Ponzi scheme. A federal grand jury returned an indictment on August 24, 2010, charging GISH and MYRA J. ETTENBOROUGH, 55, of Roswell, GA, with conspiracy and mail and wire fraud arising out of their operation of GISH’s business, Weston Rutledge Financial Services, Inc. (“Weston Rutledge”), which was located in Marietta and, later, Roswell, Georgia. ETTENBOROUGH appeared for her initial appearance on the indictment on Friday.

United States Attorney Sally Quillian Yates said, “Investors lost millions of dollars that they were told was successfully invested and was generating earnings on their investment. Instead, Mr. Gish and Ms. Ettenborough allegedly made false promises and diverted the money to other uses, including their own personal benefit.”

Brian D. Lamkin, Special Agent in Charge, FBI Atlanta Field Office, stated: “The loss amounts sustained by the many victims in this investment fraud scheme represent the greed of those responsible. While it is hard to avoid becoming a victim of these aggressive and well constructed schemes when the facts and figures being provided are blatantly falsified, people should always be extremely cautious of promises of high rates of returns.”

According to United States Attorney Yates, the indictment and other information presented in court: Beginning in 2005 and continuing to May 17, 2006, GISH and ETTENBOROUGH conspired to defraud and defrauded investment clients of Weston Rutledge by fraudulently misrepresenting the ways in which they used their clients’ money and the purported earnings that the clients’ investments generated. On May 17, 2006, a federal judge froze Weston Rutledge’s assets and appointed a receiver to take over Weston Rutledge and find any and all assets derived from the alleged fraud for return to investors. Despite having received almost $29 million in investments from its clients, Weston Rutledge’s bank accounts had only approximately $1 million of the money raised from investors left when it was placed into receivership. The indictment alleges that GISH and ETTENBOROUGH used the invested funds for a variety of purposes that were different than the purposes and uses represented to investors. None of these uses returned any principal, earnings, or profits to Weston Rutledge that were consistent with or that supported the representations that GISH and ETTENBOROUGH made to investors about the earnings and profits generated with their funds.

The indictment alleges that GISH operated, controlled, and was the primary salesperson for Weston Rutledge, which was headquartered in Marietta, Georgia until August 2005, and thereafter at an office in Roswell, Georgia. GISH also established an office for Weston Rutledge in Denton, Texas. ETTENBOROUGH was Weston Rutledge’s Office Manager, responsible for managing its day-to-day operations, answering questions from investors about their accounts at Weston Rutledge, and maintaining Weston Rutledge’s various bank accounts, including the bank accounts established to receive and disburse investment funds raised from investors.

The indictment alleges that Weston Rutledge’s investment offerings included three pooled investment funds or entities named or referred to as “Zamindari Capital,” the “Lexington International Fund,” (the “Lexington Fund”) and “Oxford Adams.” Zamindari Capital purportedly was involved in bond or note trading “projects” or “programs” that varied in length. The Lexington Fund purportedly was involved in currency trading. Oxford Adams purportedly was involved in index or options investing.

The indictment alleges that to obtain investments, GISH made false representations to investors and potential investors about the uses, security, and profits and earnings of investments in Zamindari Capital and the Lexington Fund. When meeting with investors and potential investors, GISH falsely represented that funds invested in Zamindari Capital would be held in a bank account that was blocked, would not be touched, and not depleted during the course of the investment. GISH falsely represented that money invested in the Lexington Fund would be used for currency trading. GISH falsely promised that Zamindari Capital produced gains of 10-15 percent per month and that Lexington produced gains of 4-8 percent per month depending on the amount invested. GISH provided investors and caused investors to be provided with written materials repeating and confirming these false promises and representations.

The indictment alleges that ETTENBOROUGH, as Weston Rutledge's Office Manager, falsely portrayed to investors that Zamindari Capital and the Lexington Fund were successful investments that generated the returns and “earnings” that GISH promised and caused to be promised. GISH and ETTENBOROUGH sent investors monthly statements that falsely reflected earnings on and the growth of their funds invested in Zamindari Capital and the Lexington Fund. These statements showed increases in investors’ total account balances as a result of purported earnings or gains from the supposed investments.

The indictment alleges that GISH and ETTENBOROUGH used the money invested in Zamindari Capital and the Lexington Fund for a variety of uses and purposes that were different than those represented to investors. These uses and purposes included payments to investors who requested withdrawals or distributions of principal and earnings from their Zamindari Capital, Lexington Fund, and Oxford Adams investments; transfers to third parties purportedly for or in connection with investments or, in certain cases, as loans; payments and transfers to GISH and for his personal benefit; payment of Weston Rutledge’s operating expenses, including ETTENBOROUGH’s salary, other employee salaries, office rent, and travel expenses; payment of commissions to the sales representative working out of the Denton, Texas, office; payments to investors for referring new investors; and transfers to other Weston Rutledge bank accounts that GISH and ETTENBOROUGH established that were not related to Zamindari Capital or the Lexington Fund.

The indictment alleges that Weston Rutledge, Zamindari Capital, and the Lexington Fund did not receive significant and meaningful funds, earnings, and gains back from and as a result of GISH and ETTENBOROUGH's uses of investor money. GISH and ETTENBOROUGH's representations about Zamindari Capital and Lexington Fund earnings and gains, including the account statements that they sent and caused to be sent to investors, were not supported by and consistent with any earnings and gains returned or received from the supposed investments and loans made with investor funds. GISH and ETTENBOROUGH allegedly concealed and failed to disclose these material facts to investors.

The indictment alleges that in December 2005, and until it was placed into receivership on May 17, 2006, Weston Rutledge did not have sufficient funds on hand to satisfy all investor requests for withdrawals of principal and earnings. To help fund requested withdrawals, GISH and ETTENBOROUGH attempted to retrieve some of the money they had sent to a third party as a purported investment or loan. GISH and ETTENBOROUGH were unsuccessful and received no money back. GISH and ETTENBOROUGH delayed paying certain withdrawal requests until they could fund requested withdrawals with money from other investors.

The indictment charges one conspiracy count and 10 counts of mail and wire fraud. The conspiracy charge carries a maximum possible sentence of up to five years and a fine of up to $250,000. Each of the mail and wire fraud charges carry a maximum possible sentence of up to 20 years in prison and a possible 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.

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.

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As Hurricane Earl Approaches, FEMA Urges East Coast Residents to be Prepared

Families Should Visit Ready.gov to Learn Steps to Prepare for Hurricanes and Severe Weather

As Hurricane Earl moves toward Puerto Rico and the U.S. Virgin Islands and then up toward the East Coast of the United States, the Federal Emergency Management Agency (FEMA) is urging all Americans in East Coast states to take steps now to prepare their families and businesses for hurricanes and severe weather. While there are currently no hurricane warnings or watches in effect for the U.S. mainland, current projections from the National Hurricane Center show the storm could affect states up and down the East Coast and storm tracks can change quickly and unexpectedly. With this in mind, FEMA is coordinating through its regional offices to aggressively prepare should severe weather affect the East Coast and encouraging all Americans to visit www.ready.gov for helpful tips on preparing for hurricanes, flash flooding, and other disasters.

"Hurricane Earl should serve as a reminder to all of us of the importance of being prepared for hurricanes and other emergencies," said FEMA Administrator Craig Fugate. "At FEMA, we're taking steps to aggressively prepare should a hurricane make landfall along the East Coast, but FEMA is only one part of the team. Even if this storm doesn't make landfall, everyone should visit Ready.gov now and learn how to make your family safer and better prepared."

Steps individuals and families should take to prepare for an emergency include developing a family communications plan, putting together a kit with 72 hours of food and water, and staying informed of risks in their area.

It's also important to remember that hurricanes frequently bring with them heavy rains and the threat of flash flooding, which can occur hundreds of miles inland from the coast. People along the coast should also be aware of dangerous rip tides and surf. Floods are the costliest natural disaster in the United States, and so valuables and important documents should be copied and kept in a safe place.

Hurricane Earl has been categorized by the National Hurricane Center as a Category 4 hurricane. A hurricane warning has been issued for the U.S. Virgin Islands, and a watch has been issued for Puerto Rico. FEMA is coordinating across the federal government and working with commonwealth and territorial officials in the Virgin Islands and Puerto Rico to support their preparedness and response efforts on the ground. Learn more about those efforts.

FEMA personnel are also monitoring the storm and reaching out to Governors and local officials up and down the East Coast to ensure they are prepared should they be affected by severe weather in the coming days. FEMA has life-saving and life-sustaining commodities and supplies strategically located across the country to support states in their response, including in the areas of possible impact. These supplies, including water, meals, tarps, blankets, generators and other essential items, can be replenished through the national logistics supply chain.

Since this weekend, FEMA has been in constant contact with the White House and Department of Homeland Security (DHS) to provide regular updates on the storm's developments. Today Administrator Fugate briefed DHS Secretary Janet Napolitano about FEMA's ongoing preparations for and response to severe weather in the Atlantic Ocean, including Hurricane Earl.

The National Weather Service remains the source of official severe weather watches and warnings, including flash flooding which can take only a few minutes to develop in the case of heavy rains.

FEMA encourages all individuals in the region to listen to NOAA Weather Radio and their local news to monitor for severe weather updates, and to follow the directions provided by their local officials especially concerning any potential evacuations.

4.4 Percent of Prison Inmates and 3.1 Percent of Jail Inmates Reported One or More Incidents of Sexual Victimization During 2008-2009

/PRNewswire/ -- An estimated 88,500 inmates--64,500 in prison and 24,000 in jails--reported experiencing one or more incidents of sexual victimization by another inmate or facility staff during 2008-09, the Justice Department's Bureau of Justice Statistics (BJS) in the Office of Justice Programs announced today. The findings are based on a survey of prison and jail inmates about incidents occurring in the last 12 months or since their admission to the facility, if less than 12 months.

To meet requirements of the Prison Rape Elimination Act of 2003, BJS surveyed more than 81,500 inmates held in 167 state and federal prisons, 286 jails, and 10 special confinement facilities between October 2008 and December 2009. About 4.4 percent of prison inmates and 3.1 percent of jail inmates reported sexual victimization by another inmate or facility staff. Nationwide, 2.1 percent of all prison inmates and 1.5 percent of all jail inmates reported at least one incident involving another inmate; 2.8 percent of prison inmates and 2.0 percent of jail inmates reported having had sex or sexual contact with facility staff.

Among the 463 facilities in the survey, eight male prisons, two female prisons, and six jails were identified as "high rate" facilities based on the prevalence of inmate-on-inmate sexual victimization. Four male prisons, two female prisons, and five jails were identified as "high rate" based on the prevalence rate of staff sexual misconduct.

Among all prison inmates, the reported use or threat of physical force to engage in sexual activity was generally low. An estimated 1.3 percent of prison inmates reported the use or threat of force during inmate-on-inmate victimization and 1.0 percent during staff sexual misconduct. Among all jail inmates,

1.0 percent reported the use or threat of force during inmate-on-inmate victimization and staff sexual misconduct.

Female prisoners (4.7 percent) were more than twice as likely as male prisoners (1.9 percent) to report experiencing sexual victimization by another prisoner. Jail inmates reported a similar pattern of inmate- on-inmate sexual victimization (3.1 percent for females compared to 1.3 percent for males).

Sexual activity with staff was somewhat more prevalent among incarcerated males. An estimated 2.9 percent of male prisoners and 2.1 percent of male jail inmates reported at least one incident with staff, compared to 2.1 percent of female prisoners and 1.5 percent of female jail inmates.

Among male inmates who reported staff sexual misconduct in prison and jail, about two-thirds reported sexual activity with female staff.

White or multi-racial inmates reported higher rates of inmate-on-inmate sexual victimization in prisons and jails than black inmates. Higher rates were also reported among inmates who had a college degree or more compared to those who had not completed high school, who had a sexual orientation other than heterosexual compared to heterosexuals, and who had experienced a sexual victimization before coming to the facility compared to those who had not.

Rates of reported staff sexual misconduct were higher among black inmates compared to white inmates and higher for inmates ages 20 to 24 compared to those age 25 or older. Also, rates of staff sexual misconduct were higher among inmates with a college degree or more compared to those who had not completed high school, and among inmates who had experienced a sexual victimization before coming to the facility compared to those who had not.

About half of the inmates who reported inmate-on-inmate sexual victimizations reported at least one incident of nonconsensual sex, defined as unwanted oral, anal, or vaginal sex, or manual stimulation. Over half of the inmates who reported staff sexual misconduct said that the sexual contact or activity was willing.

Among victims of inmate-on-inmate sexual victimization, 37 percent of males in jail and 21 percent of males in prison reported being injured. Among females, eight percent in jail and 17 percent in prison reported being injured. For victims of staff sexual misconduct, 17 percent of males in jail and nine percent of males in prison reported they had been injured, compared to eight percent of females in jail and 19 percent of females in prison. The most common injuries were bruises, scratches and cuts.

The report, Sexual Victimization in Prisons and Jails Reported by Inmates, 2008-09 (NCJ 231169), was written by BJS statisticians Allen J. Beck and Paige M. Harrison and RTI International staff Marcus Berzofsky, Rachel Caspar, and Christopher Krebs. Following publication, the report can be found at http://bjs.ojp.usdoj.gov/.

Seeking Information on Three Robberies in the Atlanta Metro Area

Special Agent in Charge (SAC) Brian D. Lamkin, FBI Atlanta, requests the assistance of the public in identifying and locating the individuals believed to be responsible for at least three bank robberies in metro Atlanta, Georgia.

On Wednesday, August 25, 2010, at approximately 10:43 a.m., two black males entered the Wachovia Bank, located at 1280 Dogwood Drive, Conyers, Georgia, brandishing handguns and disguising themselves with black wigs while announcing a robbery. After obtaining an undisclosed amount of money, the robbers departed the bank without further incident.

These two robbers are also believed to be responsible for two additional armed robberies within the metro Atlanta area, the details of which are provided below:

On Monday, August 16, 2010, at approximately 10:30 a.m., two black males, armed with handguns, entered the Wachovia Bank located at 3374 Holcomb Bridge Road, Norcross, Georgia and proceeded to take over the banking center. Robber #1 vaulted over the teller counter, while Robber #2 remained in the lobby area, ordering other bank patrons to the ground at gunpoint. The armed robbers obtained an undisclosed amount of cash before fleeing the bank, possibly in a silver Lexus.

On Tuesday, July 27, 2010, at approximately 10:44 a.m., two black males, armed with handguns, entered the Wachovia Bank located at 2725 Clairmont Road, Atlanta, Georgia and announced a robbery. Robber #1 vaulted the teller counter, carrying a blue canvas bag and obtained an undisclosed amount of money from the teller stations. Robber #2, while 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 is described as a black male, 20-30 years in age, wearing a short black wig, glasses, and t-shirt.
Robber #2 is described as a black male, 20-25 years in age, wearing a shoulder length wig, black in color, shorts, work style boots, stocky build.

The robbers are believed to be traveling in a silver Lexus.

Both robbers brandished handguns throughout the robbery and should be considered armed and dangerous.

Anyone with information regarding this matter should contact the Atlanta office FBI at tel. (404) 679-9000 or Conyers PD at tel. (770) 929-4206.

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ATF Offers $5K Reward for Information on Retail Gun Theft

/PRNewswire/ -- The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Atlanta Field Division, today announced a reward of up to $5,000 for information leading to the arrest and convictions of those responsible for a recent firearms theft at Kemp's Pharmacy, a federal firearm licensee in Claxton, Ga. The incident has triggered a multi-jurisdictional investigation, being conducted by ATF, the Georgia Bureau of Investigation, the Evans County Sheriff's Office and the Claxton Police Department.

"Gun thieves play a critical and deadly role in the chain of violence, and ATF places a major emphasis on solving these crimes," said Special Agent in Charge Gregory Gant. "Investigative experience has shown that felons, gang members and juveniles are some of the most common customers for stolen guns in the underground economy of our streets. When guns fall into the wrong hands, the potential for violence increases. Solving this crime will be a team effort, among law enforcement and concerned members of the public."

The early morning burglary occurred on Saturday, June 12 at the business, located at 107 S. Duval St., Claxton, Ga. At approximately 12:50 a.m., the store's security system alerted owners and law enforcement to the burglary. The thieves made entry by smashing the front glass door of the business with a large, metal 55-gallon barrel. Once inside, they smashed two glass display cases and were able to steal a total of 26 handguns and an AK-47 style rifle. Security cameras from an adjacent business filmed two black male subjects fleeing on foot from Kemp's Pharmacy at the time of the theft.

Investigators are seeking the public's help with identifying the subjects involved and providing information on the location of any or all 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). Callers can remain anonymous.

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Georgia Man Convicted of Child Sex Abuse Offenses

Dwain D. Williams was convicted Thursday by a federal jury in Valdosta, Ga., on child sex abuse offenses, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and Acting U.S. Attorney G.F. Peterman III of the Middle District of Georgia.

Williams was convicted of one count of traveling in foreign commerce and engaging in illicit sexual conduct, one count of aggravated sexual abuse, and one count of abusive sexual contact of a child under 12 years of age. The aggravated sexual abuse and the abusive sexual contact charges were committed while Williams was accompanying a member of the Armed Forces outside of the United States in violation of the Military Extraterritorial Jurisdiction Act (MEJA). Williams faces a possible mandatory minimum sentence of 30 years in prison and a maximum sentence of life in prison for his conviction.

At trial, the female victim, currently 15 years old, testified that Williams had repeatedly raped her starting from when she was 9 years old until she was 13, when she lived in Okinawa, Japan.

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 www.projectsafechildhood.gov.

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Georgia Man Sentenced to 30 Years in Prison for Role in Drug Trafficking Conspiracy

MARLON BURTON, 38, of McDonough, Georgia, was sentenced today by United States District Judge Thomas W. Thrash to serve 30 years in federal prison on charges of conspiring to distribute drugs.

United States Attorney Sally Quillian Yates said, “Mr. Burton ran a sophisticated drug-trafficking organization for over 10 years while appearing to operate a legitimate contracting business in Atlanta. In reality, he was purchasing hundreds of kilograms of cocaine and other drugs from a Mexican drug cartel and then distributing the drugs to a variety of street-level dealers working for his organization.”

Atlanta FBI Special Agent in Charge Brian D. Lamkin said, “The FBI, as part of the multi-agency Wilhelm Strike Force, is pleased to have this career offender off the streets. Burton had integrated himself into an international drug cartel and it was his role to bring that cartel’s interests and product to the Atlanta area and beyond.”

According to United States Attorney Yates, the charges and other information presented in court: Beginning in November 2008, the Federal Bureau of Investigation in Atlanta began to investigate BURTON and his drug-trafficking organization. The investigation quickly revealed that BURTON led a large drug-distribution group that operated in Atlanta. BURTON, and those working for him, distributed wholesale quantities of cocaine, heroin and marijuana during the conspiracy.

In November 2008, the United States District Court for the Northern District of Georgia authorized the first wiretaps of telephones used by members of this organization. From November 2008 to December 2009, the FBI monitored telephones carried by its members, including BURTON. It quickly became apparent that BURTON was working with members of a Mexican drug trafficking cartel to obtain his drugs. In fact, it was not uncommon for BURTON to fly to Mexico himself to negotiate with cartel members concerning the price and quantity of drugs they would ship to him in Atlanta.

During the year-long investigation, BURTON was intercepted on the FBI wiretaps directing the distribution of hundreds of kilograms of cocaine and thousands of pounds of marijuana in the Atlanta area. In July 2009, for example, after intercepting coded talk from BURTON concerning a load of drugs, law enforcement stopped a tractor trailer in McDonough, Georgia carrying 40 kilograms of cocaine destined for BURTON.

BURTON also generated millions of dollars in drug proceeds from the sale of the narcotics. In an effort to launder profits from his drug dealing, BURTON funneled drug money through his construction company and the other businesses he owned. It is estimated that BURTON laundered over $1.5 million in drug proceeds this way.

BURTON and eight other individuals were indicted in December 2009, on drug trafficking and money laundering charges relating to the drug conspiracy. PRINSTON CARTER was sentenced to four years in prison on May 18, 2010, for his role in the offense. DECARLO TATUM was sentenced to 11 years, three months’ imprisonment on July 28, 2010. RUFINO PRUNEDA received a nine-year prison sentence on August 18, 2010. INNECENCIO OCHOA, DAVID RUIZ, and OTONIEL HERRERA await sentencing in the case. MARCO DURON remains a fugitive.

BURTON was sentenced to 30 years in prison to be followed by five years of supervised release. The court also ordered the forfeiture of BURTON’s vehicles and house in Clayton County, Georgia. BURTON was convicted of these charges on May 26, 2010, after entering his guilty plea with the District Court.

This case was investigated by special agents of the Federal Bureau of Investigation.

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Clayton County Police Officer Charged with Federal Corruption, Narcotics, and Firearms Violations and Stealing from Motorists

JONATHAN S. CALLAHAN, 27, of Atlanta, a patrol officer with the Clayton County Police Department, has been indicted by a federal grand jury on charges of accepting money to use his law enforcement position to protect illegal drug transactions, possessing a stolen firearm, and stealing personal property from drivers during traffic stops. CALLAHAN made an initial appearance today before United States Magistrate Judge C. Christopher Hagy.

United States Attorney Sally Quillian Yates said, “As a police officer, Officer Callahan took an oath to serve and protect the public. Instead, he abandoned that oath and used his position to protect drug dealers and steal from the citizens he was sworn to protect. Fortunately, thousands of dedicated law enforcement officers in Northern Georgia work tirelessly and honorably to keep us safe. We owe it to each of them to vigorously prosecute those who violate their oath and break the law.”

FBI Atlanta Special Agent in Charge Brian D. Lamkin said, “The egregious acts such as those alleged in the indictment of Officer Callahan can often erode the public’s trust in its law enforcement officers, noting that law enforcement officers are expected to serve and protect the public, not prey on them. It is for this reason that the FBI places a high priority on such investigations. The FBI asks that anyone with information regarding public corruption matters contact its Atlanta FBI Office at (404) 679-9000.”

Clayton County Police Department Interim Chief Timothy R. Robinson said, “When I was named Interim Chief, I was tasked with bringing leadership and direction to the department in order to achieve and maintain organizational discipline and professionalism. The actions alleged in this indictment are despicable. Officer Callahan was sworn to uphold the law, not break it. This case serves as a reminder that no one is above the law. I have no tolerance for officer misconduct and will continue to hold all members of the Clayton County Police Department to the highest standards. Simply stated, officer misconduct will not be tolerated.”

According to United States Attorney Yates, the indictment and information presented in court: On three separate occasions between August 6-13, 2010, CALLAHAN, while on duty, was paid to aid and abet others in possessing with intent to distribute at least 500 grams of cocaine. The indictment further charges that on July 15, 2010, CALLAHAN, while on duty as a patrol officer, allegedly stole two firearms from a motorist CALLAHAN had stopped for a traffic violation. The next day, again while on duty, CALLAHAN stole United States currency from another driver who was also stopped for a traffic violation. The indictment alleges that both thefts violated the drivers’ constitutional right to be free from an unreasonable seizure by a police officer. The indictment also charges that on August 17, 2010, CALLAHAN was in possession of a stolen firearm.

Each charge of attempting to aid and abet others in possessing with intent to distribute at least 500 grams of cocaine carries a maximum penalty of 40 years in prison, a mandatory minimum sentence of five years in prison, and a fine of up to $250,000. Each charge of accepting money to use his law enforcement position to protect illegal drug transactions carries a maximum penalty of 20 years in prison and a fine of up to 250,000. The charge of possession of a stolen firearm carries a maximum sentence of five years in prison and a fine of up to $250,000. Each charge of deprivation of civil rights by stealing property from a driver carries a maximum penalty of one year in prison and a fine of up to $100,000.

Members of the public are reminded that an indictment contains only allegations. A 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 the Federal Bureau of Investigation with assistance from the Clayton County Police Department.

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FBI: Seeking Assistance in Locating Armed Bank Robbery Suspects

Special Agent in Charge (SAC) Brian D. Lamkin, FBI Atlanta, requests the assistance of the public in identifying and locating the individuals believed to be responsible for at least two (2) bank robberies in metro Atlanta, Georgia:

On Monday, August 16, 2010, at approximately 10:30 a.m., two black males, armed with handguns, entered the Wachovia Bank located at 3374 Holcomb Bridge Road, Norcross, Georgia and proceeded to take over the banking center. Robber #1 vaulted over the teller counter, while Robber #2 remained in the lobby area, ordering other bank patrons to the ground at gunpoint. The armed robbers obtained an undisclosed amount of cash before fleeing the bank, possibly in a silver Lexus.

On Tuesday, July 27, 2010, at approximately 10:44 a.m., two black males, armed with handguns, entered the Wachovia Bank located at 2725 Clairmont Road, Atlanta, Georgia and announced a robbery. Robber #1 vaulted the teller counter, carrying a blue canvas bag and obtained an undisclosed amount of money from the teller stations. Robber #2, while 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 is described as a Black male, 20-30 years in age, wearing a short black wig, glasses, and t-shirt.

* Robber #2 is described as a Black male, 20-25 years in age, wearing a shoulder length wig, black in color, shorts, work style boots, stocky build.

The robbers are believed to be traveling in a silver Lexus.

Both robbers brandished handguns throughout the robbery and should be considered armed and dangerous.

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

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Augusta Man Sentenced to Over 29 Years for Cocaine Trafficking

Reginald Darrell Beale, 29, from Augusta, Georgia, was sentenced earlier this week by U.S. District Judge J. Randal Hall to 350 months in prison for his conviction on cocaine trafficking charges. After serving his prison sentence, Beale will be on federal supervised release for five years.

Evidence presented during the sentencing revealed that Beale was a leader of a drug organization that operated in the Dogwood Terrace public housing community which was responsible for distributing up to15 kilograms of cocaine in the Augusta area. Beale has a previous drug conviction arising from his drug trafficking in the same housing community several years earlier.

The case was investigated by the FBI’s Safe Streets Task Force, which consists of officers and agents from the FBI, the Richmond County Sheriff’s Office, the Columbia County Sheriff’s Office, the Georgia Bureau of Investigation and the Georgia State Board of Pardons and Paroles. The Drug Enforcement Administration and the United States Marshal’s Service also participated in the investigation.

United States Attorney Edward J. Tarver stated, “Our public housing communities are a resource that provide safe, clean, affordable housing, not sanctuaries for those who traffic in illegal drugs and other criminal behavior. Operations like the Streets Task Force show law enforcement’s ability to apprehend those who prey on public housing communities.”

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Seeking Assistance in Locating Serial Bank Robber

Special Agent in Charge (SAC) Brian D. Lamkin, FBI Atlanta, requests the assistance of the public in identifying and locating the individual responsible for a series of bank robberies at Gwinnett County, Georgia:

On Wednesday, 8/11/2010, at approximately 12:30 pm, a lone black male entered the Suntrust Bank inside of a Publix Shopping Store located at 4850 Sugarloaf Parkway, Lawrenceville, Georgia and proceeded to one of the bank’s teller counters. The robber opened the bag which contained a handgun and pointed it at the teller while demanding money. The victim teller gave the robber an undisclosed amount of cash and the robber fled on foot.

This same robber is believed to be responsible for a 6/15/2010 armed robbery of the Suntrust Bank, also located inside of a Publix Grocery Store, at 3435 Ashford Dunwoody Road, Atlanta, Georgia (Oglethorpe Crossing).

The robber is described as being a black male, approximately 25-30 years old, 5'9" - 6'00", 160-170lbs, wearing camo baseball cap, black Ralph Lauren brand polo shirt, sunglasses, and carrying a blue Suntrust bag.

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

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International Hacker Arraigned After Extradition

SERGEI TŠURIKOV, 26, of Tallinn, Estonia, has been extradited to the United States. TŠURIKOV appeared today and was arraigned before United States Magistrate Judge E. Clayton Scofield III, on federal charges of conspiracy to commit wire fraud, wire fraud, conspiracy to commit computer fraud, computer fraud, and aggravated identity theft. TŠURIKOV was indicted by a federal grand jury on these charges on November 10, 2010, along with VIKTOR PLESHCHUK, 29, of St. Petersburg, Russia; OLEG COVELIN, 29, of Chişinău, Moldova; and an unidentified individual. The indictment also charged IGOR GRUDIJEV, 32, RONALD TSOI, 32, EVELIN TSOI, 21, and MIHHAIL JEVGENOV, 34, each of Tallinn, Estonia, with access device fraud offenses.

United States Attorney Sally Quillian Yates said of the case, “In November 2008, in just one day, an American credit card processor was hacked in perhaps the most sophisticated and organized computer fraud attack ever conducted. Almost exactly one year later, the leaders of this attack were charged. With cooperation from law enforcement partners around the world, and most particularly in Estonia, we have now extradited to Atlanta one of the leaders of this ring. This success would not have been possible without the efforts of the victim, and unprecedented cooperation from various law enforcement agencies worldwide.”

“Computer hackers who steal from American financial networks must be held accountable for their crimes, whether they operate here or abroad,” said Assistant Attorney General Breuer. “The Department of Justice, working hand in hand with our international law enforcement partners, is committed to denying these criminals safe haven outside the United States and will vigorously investigate and prosecute these crimes.”

Atlanta FBI Special Agent in Charge Brian D. Lamkin stated, “Complex cyber based criminal investigations such as this are becoming all too prevalent. The advances in technology, while aiding the corporate world and the consumer, also aid the criminal in conducting well coordinated fraud or theft based schemes, often across international borders. The FBI extends its gratitude to those international partners who not only assisted with this investigation but with the extradition to the U.S. of one of its chief ring leaders in this multimillion dollar, multi-national theft ring.”

According to United States Attorney Yates, the charges and other information presented in court: During November 2008, PLESHCHUK, TŠURIKOV, and COVELIN allegedly obtained unauthorized access into the computer network of “RBS WorldPay,” the U.S. payment processing division of the Royal Bank of Scotland Group PLC, located in Atlanta. The indictment alleges that the group used sophisticated hacking techniques to compromise the data encryption that was used by RBS WorldPay to protect customer data on payroll debit cards. Payroll debit cards are used by various companies to pay their employees. By using a payroll debit card, employees are able to withdraw their regular salaries from an ATM.

Once the encryption on the card processing system was compromised, the hacking ring allegedly raised the account limits on compromised accounts, and then provided a network of “cashers” with 44 counterfeit payroll debit cards, which were used to withdraw more than $9 million from over 2,100 ATMs in at least 280 cities worldwide, including cities in the United States, Russia, Ukraine, Estonia, Italy, Hong Kong, Japan and Canada. The $9 million loss occurred within a span of less than 12 hours.

The hackers then allegedly sought to destroy data stored on the card processing network in order to conceal their hacking activity. The indictment alleges that the “cashers” were allowed to keep 30 to 50 percent of the stolen funds, but transmitted the bulk of those funds back to TŠURIKOV, PLESHCHUK, and other co-defendants, using means such as WebMoney accounts and Western Union. Upon discovering the unauthorized activity, RBS WorldPay immediately reported the breach, and has substantially assisted in the investigation.

Throughout the duration of the cashout, PLESHCHUK and TŠURIKOV allegedly monitored the fraudulent ATM withdrawals in real-time from within the computer systems of RBS WorldPay. Once the withdrawals were completed, PLESHCHUK and TŠURIKOV allegedly attempted to conceal their activities in the RBS WorldPay computer network by destroying and attempting to destroy data.

TŠURIKOV was not only an alleged hacker, but also distributed fraudulently obtained debit card account numbers and PIN codes to IGOR GRUDIJEV, who, in turn, allegedly distributed the information to Defendants RONALD TSOI, EVELIN TSOI, and MIHHAIL JEVGENOV in Estonia. Together, RONALD TSOI, EVELIN TSOI, and MIHHAIL JEVGENOV allegedly withdrew funds worth approximately $289,000 in U.S. funds from ATMs in Tallinn, Estonia.

The indictment contains 16 counts. Count One charges PLESHCHUK, TŠURIKOV, COVELIN, and a fourth unidentified individual of conspiracy to commit wire fraud. Counts Two through Ten are substantive wire fraud charges brought against PLESHCHUK and TŠURIKOV, aided and abetted by COVELIN and the unidentified hacker, based on the computer commands sent from outside the United States to the computer network of RBS WorldPay in the Northern District of Georgia. Count Eleven charges PLESHCHUK, TŠURIKOV, COVELIN, and the fourth individual with conspiracy to commit computer fraud. Counts Twelve through Fourteen are substantive charges of computer fraud against the defendants. Count Fifteen charges these defendants with aggravated identity theft based on the prepaid payroll card account numbers and associated PIN codes they transferred, possessed, and used without authorization in committing the wire fraud. Count Sixteen charges RONALD TSOI, EVELIN TSOI, and JEVGENOV, aided and abetted by GRUDIJEV, with access device fraud.

The indictment seeks forfeiture of over $9.4 million of proceeds of the crimes from the defendants.

PLESHCHUK, TŠURIKOV, COVELIN, and the unidentified defendant each face a maximum sentence of up to 20 years for conspiracy to commit wire fraud and each wire fraud count; up to five years for conspiracy to commit computer fraud; up to five or 10 years for each count of computer fraud; a two-year mandatory minimum for aggravated identity theft; and fines up to $3.5 million dollars. The charges against GRUDIJEV, the TSOI's, and JEVGENOV carry a maximum of up to 15 years’ incarceration for each count 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 early detection of fraudulent ATM withdrawal activities in Tallinn, Estonia led to an immediate response by the Estonian Central Criminal Police. Their investigative efforts led to the prompt identification of TŠURIKOV, GRUDIJEV, the TSOIs, and JEVGENOV. Cooperation between the Hong Kong Police Force and the FBI also led to a parallel investigation, resulting in the identification and arrest of two individuals who were responsible for withdrawing RBS WorldPay funds from ATM terminals in Hong Kong. The Netherlands Police Agency National Crime Squad High Tech Crime Unit and the Netherlands National Prosecutor’s Office provided key assistance in the investigation.

Since the United States indictment was announced in November 2009, TŠURIKOV, GRUDIJEV, the TSOI’s, and JEVGENOV have been convicted in Estonia of fraud relating to ATM withdrawals. TŠURIKOV has now been extradited from Estonia to the United States to answer to the charges in the United States’ indictment.

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

This case is being investigated by special agents of the Federal Bureau of Investigation. Assistance was provided by international law enforcement partners. The United States Secret Service also participated in the investigation. RBS World Pay immediately reported the crime and has substantially assisted in the investigation.

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U.S. Department of Justice Announces Strategy to Enhance Efforts to Combat Child Exploitation

On Monday, August 2, 2010, Attorney General Eric Holder announced the Department of Justice’s National Strategy for Child Exploitation Prevention and Interdiction, a series of initiatives aimed at combating the rising tide of child exploitation crimes. The National Strategy identifies several areas of particular concern for law enforcement and prosecutive agencies, including the increased availability of child pornography, the growth of online enticement of minors, and the flourishing child sex tourism industry. In related remarks, Acting Deputy Attorney General Gary Grindler announced the creation of dozens of new positions for federal prosecutors dedicated to the handling of child exploitation cases.

“Protecting our children from these predators has been and will remain one of my office’s highest priorities. The Attorney General’s National Strategy will help us build upon a highly successful federal-local law enforcement partnership that has resulted in dozens of child exploitation prosecutions over the past two years,” said United States Attorney Sally Quillian Yates. “As these cases demonstrate, the threat facing our children is significant and comes from all corners of society. While our work has been effective and impacted the problem, there is, sadly, much more to be done.”

Atlanta FBI Special Agent in Charge Brian D. Lamkin said, “The FBI is well suited to conduct the complex, multi-jurisdictional investigations that often arise in child predator and child exploitation matters. With the increased use of computers and the Internet as tools, these predators can emerge from any of the four corners of the map. The investigative network built by the FBI, in conjunction with its many and varied law enforcement partners, is critical to developing these cases for prosecution. The protection of America’s children is clearly a priority and the FBI is proud of the role it and its partners play in this effort.”

The FBI currently operates two task forces in the greater Atlanta metro area dedicated to investigating child sex crimes. The Safe Child Task Force, headquartered in Atlanta and with a unit based in Dalton, brings together investigators from the police departments of Alpharetta, Dalton, Duluth, Henry County, Johns Creek, Lawrenceville, Rossville, Roswell, and Sandy Springs and the sheriff’s offices of Catoosa County, Dade County, Newton County, and Whitfield County to target distributors of child pornography and online child predators. The Metro Atlanta Child Exploitation Task Force (MATCH), which combats the commercial sexual exploitation of children at the local level, combines the resources of the police departments from Atlanta, Marietta, Sandy Springs and Gwinnett County.

In conjunction with the Attorney General’s announcement, the U.S. Attorney’s Office announces the following developments in child exploitation prosecutions and investigations in the Northern District of Georgia:

Today, GREGORY HUNTER, 50, of Mt. Airy, Georgia, a former Baptist minister who conspired with another individual to produce pornographic webcasts of a 9-year-old girl, was sentenced by United States District Judge Richard W. Story to 18 years in federal prison, followed by supervised release for the rest of his life. The case was investigated by the FBI and prosecuted by Assistant United States Attorney Brent Gray.

Today, LAWRENCE PRUITT, 27, of Central Islip, New York, and MARVIS HARRIS, 27, of Columbia, South Carolina, were sentenced by United States District Judge Charles A. Pannell, Jr., for their roles in the sex trafficking of a minor. PRUITT received a sentence of 10 years in federal prison, followed by three years of supervised release; and HARRIS received sentence of four years in federal prison, followed by two years of supervised release. PRUITT, HARRIS, and a fugitive co-defendant advertised their victim on the Craigslist website and caused her to engage in commercial sex acts with approximately 13 men in just two days. Agents from the MATCH task force are continuing their hunt for the third defendant. The case was prosecuted by Assistant United States Attorneys Richard Moultrie and Nekia Hackworth.

Today, JAMES ROBERTS, 44, of Cumming, Georgia was sentenced by United States District Judge Richard W. Story to eight years in federal prison, followed by 10 years of supervised release, for amassing a collection of over 100,000 images and videos of child pornography. The case was investigated by the FBI and prosecuted by Assistant United States Attorney Jill Steinberg.

This past weekend, on August 1, 2010, agents of the Northwest Georgia unit of the Safe Child Task Force arrested MICHAEL YOUNG, 46, of Dunwoody, Georgia, the manager of an Atlanta-based trucking company, when he arrived at a hotel in Ringgold, Georgia to have sex with a 12-year-old girl, a rendezvous he had arranged over the Internet. This was the unit’s 14th such arrest since May of this year.

Last week, on July 29, 2010, agents of the same Dalton-based Northwest Georgia unit of the Safe Child Task Force arrested JAMES LAMPRU, 25, of Atlanta, Georgia, when he showed up at a hotel in Chickamauga, Georgia for a meeting with a 12-year-old girl expecting to have sex her. LAMPRU was employed as a security guard at the World of Coca-Cola in Atlanta.

Last week, MARK STEVENS, 42, of Marietta, Georgia, an IT specialist from Bull Realty, pleaded guilty to attempting to entice over the Internet an 8-year-old girl to have sex with him. STEVENS faces a minimum sentence of 10 years in federal prison, and is scheduled to be sentenced before United States District Court Judge Timothy C. Batten, Sr., on October 14, 2010. This case is being prosecuted by Assistant United States Attorney Robert McBurney.

Also last week, on July 27, 2010, PHILIP EMANUEL, 45, of Atlanta, Georgia, pleaded guilty to receiving and possessing child pornography, to include images in which he inserted the face of a neighborhood girl. EMANUEL faces a minimum sentence of five years in federal prison, and is scheduled to be sentenced before United States District Court Judge Charles A. Pannell, Jr., on October 6, 2010. This case is being prosecuted by Assistant United States Attorney Jeff Brown.

Last month, on July 12, 2010, ADAM LEBOWITZ, 50, of Decatur, Georgia, was sentenced by United States District Judge Richard W. Story to over 26 years’ imprisonment for producing child pornography and attempting to coerce and entice a minor to engage in unlawful sex acts. LEBOWITZ was an emergency room physician at Grady Hospital. The case was investigated by the FBI, the Coweta County Sheriff’s Office, the Clayton County Police Department, and the Georgia Bureau of Investigation (GBI), with assistance from the U. S. Immigration and Customs Enforcement’s Computer Forensics Division and the Coweta County District Attorney’s Office. The case was prosecuted by Assistant United States Attorneys Richard Moultrie and Rodney Bullard.

For the text of Attorney General Holder’s remarks announcing the National Strategy, please see http://www.justice.gov/ag/speeches/2010/ag-speech-100802.html. For the text of Acting Deputy Attorney General Grindler’s remarks providing more specifics of the National Strategy, see http://www.justice.gov/dag/speeches/2010/dag-speech-100802.html.

In February 2006, the Department of Justice 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.

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Former “Most Wanted Fugitive” Receives Two Life Sentences for Four-State Bank Robbery Spree

ANTHONY RAY ARTRIP, 38, of Ashland, Kentucky, was sentenced today by United States District Judge Harold L. Murphy to serve the remainder of his life in federal prison on charges of armed robbery of banks in Calhoun, Georgia; Mt. Airy, North Carolina; Princeton, West Virginia; Marmet, West Virginia; and Frenchtown Township, Michigan.

“Today’s sentencing puts an end to the criminal career of a man who brazenly made his way across half of the United States robbing banks and terrorizing citizens, and brings justice and closure to the many victims of his crimes,” said United States Attorney Sally Quillian Yates.

Atlanta FBI Special Agent in Charge Brian D. Lamkin said, “Artrip failed to take advantage of the many opportunities given to him to set his life on the proper path. Much effort and many resources from not only the FBI but other law enforcement entities were expended in investigating, tracking, and ultimately capturing him. It is with some sense of satisfaction that the criminal justice community, along with other potential victims, will not have to face Artrip on the streets again.”

ARTRIP was sentenced to serve two life sentences without the possibility of release under the federal “three strikes” law, and he was ordered to pay restitution to the banks he robbed in the total amount of $100,132.00. ARTRIP pleaded guilty to these charges on June 22, 2010.

According to United States Attorney Yates, the charges and other information presented in court: ARTRIP robbed the Regions Bank in Calhoun, Georgia, on the morning of September 27, 2007, when he walked into the bank, brandished a handgun, and jumped the teller counter to get money. While pointing the handgun at the tellers, ARTRIP told them not to worry and referred to them as “ladies” and “sweetie,” and even told them to have a good day when he left the bank with nearly $20,000.

The robbery of the Regions Bank in Calhoun, Georgia, was part of a several-month-long multi-state crime spree in the summer and fall of 2007, that began when ARTRIP escaped from the Grant County Detention Center in Williamstown, Kentucky, on June 24, 2007. Over the next three months, ARTRIP robbed banks in West Virginia, North Carolina, Georgia, and Michigan, slipping away from near-capture by authorities many times. Shortly after his robbery of the Regions Bank in Calhoun, Georgia, ARTRIP narrowly escaped capture by police in Chattanooga, Tennessee. However, on October 8, 2007, ARTRIP’s luck ran out and he was captured by U.S. Marshals in a Pittsburgh, Pennsylvania, hotel. According to reports, ARTRIP had crawled into an air vent to try and evade justice yet again, but Marshals evacuated the hotel and used tear gas to flush ARTRIP out. During this criminal odyssey, ARTRIP was placed on the U.S. Marshal’s Most Wanted List, and was featured on the television show “America’s Most Wanted.”

ARTRIP was indicted in the Northern District of Georgia on January 9, 2008, on one count of armed bank robbery and one count of using a firearm during a crime of violence. He was also indicted in other federal districts for the armed robbery of four other banks - two in West Virginia, one in Michigan, and one in North Carolina. ARTRIP agreed to have all of his federal cases transferred to Georgia for disposition, and he pleaded guilty to all of the charges pending against him.

This case was investigated by special agents of the Federal Bureau of Investigation.

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Georgia Man Sentenced to Prison for His Role in a Three-Year Drug Conspiracy

A Georgia resident was sentenced today for his role in a three-year drug conspiracy. Thomaas “30” Redding, 21, of Macon, Georgia, was sentenced to 69 months in prison. Redding previously pleaded guilty in April 2010, admitting he conspired with other dealers to distribute five grams or more of cocaine base in and around the Huntington, West Virginia area. A federal investigation revealed that from 2006 through 2009, Redding and several others participated in a drug conspiracy responsible for distributing quantities of crack cocaine. According to court documents, during this time Redding sold cocaine base and shared in profits made by the conspiracy.

The investigation was conducted by the Huntington Drug and Violent Crime Task Force, Huntington Police Department, West Virginia State Police, Federal Bureau of Investigation, Lawrence County (Ohio) Drug Task Force, Ohio Bureau of Criminal Identification & Investigation, Cabell County Sheriff’s Department, and the Drug Enforcement Administration. United States District Judge Robert C. Chambers presided over the proceedings.

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Atlanta Man Sentenced to Prison for Fraud Related to Failed Omni National Bank

BRENT MERRIELL, 38, of Atlanta, Georgia, was sentenced today by United States District Judge Jack T. Camp to federal prison on charges of making false statements to the Federal Deposit Insurance Corporation (FDIC) and aggravated identity theft.

“The FDIC serves a critical role by insuring the assets of hard-working Americans. Mr. Merriell used stolen identities, created fictitious buyers, and negotiated phony short sale deals for properties, all in an effort to defraud FDIC of millions of dollars he owed on mortgages,” said United States Attorney Sally Quillian Yates. “This double fraud has landed him in federal prison.”

MERRIELL was sentenced to three years and three months in prison to be followed by five years of supervised release. MERRIELL was convicted of these charges on March 23, 2010, upon his plea of guilty.

According to United States Attorney Yates, the charges and other information presented in court: MERRIELL obtained millions of dollars in loans from Omni National Bank as mortgages on numerous properties. Omni later failed and was taken over by the FDIC. Beginning in October 2009, MERRIELL faced foreclosure on 14 different properties subject to Omni mortgages. In response, MERRIELL asked the FDIC to forgive $2.2 million in loan payments and instead allow him to “short sell” the properties to seven new purchasers at significantly reduced amounts. The seven new purchasers, however, were phony: the seven names MERRIEL presented to the FDIC were, in fact, stolen identities whose names were forged on sales contracts and counterfeit loan commitment letters. Under this scheme, if law enforcement had not intervened, Merriell would have retained control of the properties, and could then rent them for amounts in excess of the substantially reduced mortgage payment, or resell them at a profit.

A “short sale” occurs when a lender such as Omni Bank agrees to the sale of property—on which the current owner has defaulted—to a third party for less than the full amount due on the loan. Lenders are willing to accept “short sales” as a means of mitigating their losses on troubled loans. The MERRIELL “short sale” fraud was discovered through a sting operation conducted by the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) with the assistance of the FDIC.

Other Omni-related prosecutions to date include:

JEFFREY L. LEVINE, 68, of Atlanta, Georgia, who pleaded guilty on January 14, 2010, to causing materially false entries that overvalued bank assets to be made in the books, reports, and statements of Omni, is scheduled to be sentenced on September 14, 2010, at 2:00 p.m., before United States District Judge Jack T. Camp.

DELROY OLIVER DAVY, 37, of Lithonia, Georgia, who pleaded guilty on May 11, 2010, to bank fraud and conspiracy to commit bank fraud, mail and wire fraud in connection with a scheme to fraudulently obtain millions of dollars of mortgage loans from Omni and other lenders, is scheduled to be sentenced on September 14, 2010, before United States District Judge Jack T. Camp.

CHRISTOPHER BERNARD LOVING, 32, of McDonough, Georgia, who pleaded guilty on June 24, 2010, to making false statements to agents of the Office of the Special Inspector General for the Troubled Asset Relief Program and the FDIC in connection with an investigation regarding Omni construction contracts, is scheduled to be sentenced on August 24, 2010, before United States District Judge Jack T. Camp.

MARK ANTHONY MCBRIDE, 44, of East Point Georgia, was sentenced on April 1, 2010, to over 16 years in prison for obtaining fraudulent loans from many lenders, including Omni.

This investigation is part of 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.

This case was investigated by special agents of a mortgage fraud task force formed for Omni-related cases, made up of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), Housing and Urban Development Office of Inspector General (HUD-OIG), the United States Postal Inspection Service, the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), and the Federal Bureau of Investigation. The task force is continuing to investigate a number of Omni-related matters.

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