MACON, Ga. – A Metro Atlanta resident who orchestrated a bank fraud scheme involving checks stolen from a Macon mail collection box that he would sell online pleaded guilty to bank fraud in federal court today.Keyon Ponder, 28, of Fayetteville, Georgia, pleaded guilty to one count of bank fraud before U.S. District Judge C. Ashley Royal on March 24. Ponder faces a maximum sentence of 30 years in prison to be followed by five years of supervised release and a $1,000,000 fine. The Court will determine a sentencing date. There is no parole in the federal system.“Keyon Ponder’s stolen check scheme defrauded citizens and businesses alike, a crime that will ultimately cost him years in prison,” said Acting U.S. Attorney C. Shanelle Booker. “I commend the actions of U.S. Postal Inspection Service investigators who quickly responded to reports of theft from a Blue Box, ultimately preventing additional fraud and helping us hold the perpetrator accountable.”“The investigative work conducted by Postal Inspectors with the assistance of the Monroe County Sherriff’s Office led to the arrest of the defendant who would have continued to victimize countless other people,” said Jessica L. Wagner, Acting Inspector in Charge of the Atlanta Division. “The U.S. Postal Inspection Service remains vigilant to protect the nation's mail system from criminal misuse and will continue to aggressively investigate those individuals suspected of such crimes."According to court documents and statements referenced in Court, on May 29, 2024, the United States Postal Inspection Service (USPIS) started investigating mail theft and bank fraud issues occurring in the Macon area after receiving multiple reports of mail stolen from the U.S. Postal Service (USPS) Blue Box on Georgia Avenue near the Macon Post Office on College Street. USPIS investigators found a homemade “trap” in the Blue Box. The "trap" was made of cardboard to prevent the mail from falling completely into the Blue Box, instead keeping it held in the "trap." The “trap” allowed a person to steal the mail by placing their hand in the opening of the collection box to the mail or removing the trap and the mail.On May 31, 2024, a USPS employee reported that a suspicious vehicle was observed at that Blue Box numerous times. The USPS employee took pictures of the black Tesla with a tinted tag cover and license plate and provided them to the USPIS investigator. The USPS employee reported that the vehicle’s driver was not seen placing mail in the Blue Box but instead observed the vehicle stay longer at the collection box. Electronic surveillance also captured video of the black Tesla, as described above, pulling up to the USPS Blue Box on May 31, 2024.On that same day, at approximately 2:22 p.m., USPIS inspectors observed the black Tesla, with Ponder driving, pull up to the USPS blue box, roll down the vehicle’s window, and stick his empty hand deep in the opening of the blue box. Ponder then appeared to shove an item in the blue box but then pulled the item back towards the opening of the blue box. Ponder’s fingerprints were recovered from the “trap” in the blue box. Ponder left the location and traveled on I-75 toward Monroe County. A Monroe County Sheriff’s Office deputy pulled him over for a traffic violation, plus the additional violations observed by the USPIS inspectors. Ponder had a bag of mail in plain view on the front passenger floorboard. Ponder also had outstanding arrest warrants and was placed in custody. The mail was not addressed to Ponder and contained checks. Investigators found cardboard boxes and tape inside his vehicle, which matched the homemade “trap” inside the blue box. The agents also seized two cell phones belonging to Ponder. At the time of arrest, Ponder had 52 pieces of stolen stamped mail, including 42 stolen checks totaling more than $20,000.While incarcerated at the Monroe County Jail, Ponder was observed on jail security video taking something out of his pants and stuffing it behind a screen in the booking area. The Monroe County Sheriff’s Office recovered the envelope containing 17 more checks and one USPS Postal Money Order, none of which listed Ponder as the payee or payor and totaled more than $75,000. In all, Ponder had 59 stolen checks written for approximately $96,000.A federal search warrant executed on Ponder’s two cell phones found evidence of a sophisticated fraud scheme in which Ponder and other individuals stole mail--specifically targeting checks--to operate a fraud ring utilizing originals and copies of checks that Ponder advertised and sold on the Telegram social media and messaging application. The phone data showed 136 individuals participated on Ponder’s stolen checks Telegram channel. Ponder’s cell phone contained more than 500 stolen check images and numerous photos of stolen checks listed for sale on his Telegram channel, along with many detailed conversations regarding various aspects of the transactions of the stolen checks. Ponder admitted that he knew the checks were stolen and that he sold them or offered them for sale to others.The case was investigated by the United States Postal Inspection Service (USPIS) with assistance from the Monroe County Sheriff’s Office.Assistant U.S. Attorney Elizabeth Howard is prosecuting the case for the Government.  

COLUMBUS, Ga. – A Columbus resident pleaded guilty to wire fraud and aggravated identity theft resulting from an investigation that originated with citizen complaints about a suspected driver’s license renewal scheme.

Amanah Childs, 43, of Columbus, pleaded guilty to one count of wire fraud and one count of aggravated identity theft before U.S. District Judge Clay Land on June 13. Childs faces a maximum of 20 years in prison for wire fraud and a maximum of two years in prison for aggravated identity theft. Childs also faces a maximum of three years of supervised release and a maximum $250,000 fine for each count. Sentencing is scheduled for Aug. 29. There is no parole in the federal system.

“The defendant attempted to defraud taxpayers and used unsuspecting citizen’s personal information to commit these crimes,” said U.S. Attorney Peter D. Leary. “This case is a good reminder to all of us to carefully protect our personal identifying information and report suspected fraud to the authorities. Working with our law enforcement partners, our office will hold fraudsters accountable.”

“This is a great example of law enforcement partners working together to investigate and identify a fraudster illegally obtaining funds for her own personal gain,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division, U.S. Postal Inspection Service (USPIS). “Postal Inspectors will not cease in their ongoing efforts to protect the nation’s mail system from criminal misuse.”

“IRS-CI special agents and our federal and local law enforcement partners worked together to stop Childs from her attempts to defraud taxpayers and the federal government,” said Lisa Fontanette, acting Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “Child’s guilty plea serves as a warning to individuals contemplating committing fraud that they better find a legal means to make a living, or they will face the same consequences.”

“When the Columbus Police Department’s Financial Crimes Unit began this investigation, we already had 100 victims throughout the country, including Columbus, Georgia. Two search warrants of Childs’ residence, numerous arrest warrants and several court appearances later, we are getting to see justice achieved. This would not be possible without our amazing partners at the IRS and the U.S. Postal Inspection Service who see the importance of fraud and financial investigations, especially the horrific impact it has on our citizens, society and economy. This also sends a strong message to people who commit these types of crimes that they, too, could face similar punishment,” said Sgt. Jane Edenfield with the Columbus Police Department.

According to court documents, the Columbus Police Department began receiving complaints from people in the community and other states in 2021 about an unknown person using a Columbus, Georgia, address to apply for driver’s license renewals and replacements in their names. Law enforcement suspected this was an attempt to fraudulently apply for credit cards. A subsequent investigation revealed that Childs lived at the address and a search warrant was executed at the residence; investigators found driver’s license replacement and renewal paperwork, credit cards and mail in other people’s names. In addition, evidence revealed that Childs was applying for federal loans in other people’s names without their knowledge or authorization. Law enforcement identified 20 instances where Childs fraudulently applied for Economic Injury Disaster Loans (EIDL) administered by the Small Business Administration (SBA). All the applications, except one, were rejected by the program for suspected fraud. Fourteen fraudulent applications were submitted in the names of other people, using their means of identification and personal identifying information in the online application. Childs also submitted six fraudulent applications in her own name claiming nonexistent businesses with spurious gross revenues, costs of goods sold and other false information. The total intended loss was $1,006,600; the actual loss was $10,000. Childs used the name of a victim to get an advance on an EIDL loan for $10,000.

The case was investigated by the Columbus Police Department, IRS and the U.S. Postal Inspection Service (USPIS).

Assistant U.S. Attorney Crawford Seals is prosecuting the case for the Government.

COLUMBUS, Ga. – The CEO of a New York-based venture capital firm pleaded guilty in a wire fraud conspiracy case impacting more than 50 investors.

George Iakovou, 30, of New York, New York, pleaded guilty to one count of conspiracy to commit wire fraud on Aug. 8 before U.S. District Judge Clay Land. If convicted, Iakovou faces a maximum sentence of 20 years in prison to be followed by three years of supervised release and a $250,000 fine. Sentencing is scheduled for Dec. 19.

“George Iakovou defrauded more than 50 people from around the country of millions of dollars, using these stolen funds to buy luxury items and travel in private jets,” said U.S. Attorney Peter D. Leary. “This jet-setting con artist will now be held accountable, thanks to the hard work of the Secret Service, working in conjunction with our office.”

“George Iakovou is another example of how fraudsters are getting more sophisticated with their schemes to steal money,” said Resident Agent in Charge Clint Bush with the U.S. Secret Service’s Albany, Georgia, Resident Office. “Iakovou created a fictious capital firm for the sole purpose of defrauding American citizens. Iakovou then utilized the stolen funds to live a lavish lifestyle, without regard to the victims. Iakovou’s greed will have an everlasting effect on the victims he defrauded. The United States Secret Service will continue to investigate, arrest and support the successful prosecution of the criminals who choose to commit this and other types of financial fraud in our community and around the nation. “

According to court documents, in July 2021, the U.S. Secret Service (USSS) began investigating a pre-IPO (initial public offering) scheme orchestrated by Iakovou, the CEO of Vika Ventures LLC, a boutique venture capital firm headquartered in New York which purported to specialize in pre-IPO investments in various early and late-stage private companies.

Iakovou advertised that Vika had access to buy pre-IPO shares in private companies such as Palantir, Airbnb, SpaceX and Stripe. He claimed that once these private companies went public and the mandatory six-month lockout period expired, Vika would distribute the purchased shares to the investors. In fact, Iakovou had neither access to pre-IPO shares in the advertised companies nor owned the shares at the time of the solicitations. While Iakovou did take the victim-investors’ money, he did not purchase or acquire any of the promised shares. Iakovou established fake email domains, posed as representatives from private equity brokerage firms and created fake bank statements among other tricks to carry out his fraud scheme.

USSS identified more than 50 victim-investors from across the country who provided capital to Vika between Jan. 2020 and Dec. 2021, including two victims in the Middle District of Georgia. A review of bank records for Vika’s investor account showed that identified victim-investors paid Vika approximately $5,958,505 for the purchase of pre-IPO shares of select private companies, but none received their promised shares. Iakovou rerouted the money to several accounts, including personal bank accounts, and used the money for private jet charters, cars, home furnishings, artwork, luxury clothing and accessories. For example, Iakovou spent $135,528 on a 2021 Corvette Stingray and more than $500,000 on luxury watches, including $231,799 on a single Patek Philippe timepiece.

This case is being investigated by the U.S. Secret Service. The Securities and Exchange Commission (SEC) brought a related civil action against Iakovou.

Assistant U.S. Attorney Christopher Williams is prosecuting the case.

WASHINGTON – Health Management Associates, LLC (HMA), formerly a U.S. hospital chain headquartered in Naples, Florida, will pay over $260 million to resolve criminal charges and civil claims relating to a scheme to defraud the United States.  The government alleged that HMA knowingly billed government health care programs for inpatient services that should have been billed as outpatient or observation services, paid remuneration to physicians in return for patient referrals, and submitted inflated claims for emergency department facility fees. 

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Assistant Attorney General Joseph H. Hunt of the Justice Department’s Civil Division, U.S. Attorney Maria Chapa Lopez for the Middle District of Florida, U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, U.S. Attorney Charles E. Peeler for the Middle District of Georgia, U.S. Attorney John R. Lausch Jr. for the Northern District of Illinois, U.S. Attorney R. Andrew Murray for the Western District of North Carolina, U.S. Attorney William M. McSwain for the Eastern District of Pennsylvania, U.S. Attorney Sherri Lydon for the District of South Carolina, Assistant Director Robert Johnson of FBI’s Criminal Investigative Division, and Acting Assistant Inspector General for Investigations Derrick L. Jackson for the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.

HMA was acquired by Community Health Systems Inc. (CHS), a major U.S. hospital chain, in January 2014, after the alleged conduct at HMA occurred.  Since July 2014, HMA has been operating under a Corporate Integrity Agreement (CIA) between CHS and the HHS-OIG.

As part of the criminal resolution, HMA entered into a three-year Non-Prosecution Agreement (NPA) with the Criminal Division’s Fraud Section in connection with a corporate-driven scheme to defraud Federal health care programs by unlawfully pressuring and inducing physicians serving HMA hospitals to increase the number of emergency department patient admissions without regard to whether the admissions were medically necessary.  The scheme involved HMA hospitals billing and obtaining reimbursement for higher-paying inpatient hospital care, as opposed to observation or outpatient care, from Federal health care programs, increasing HMA’s revenue.  Under the terms of the NPA, HMA will pay a $35 million monetary penalty.  Under the terms of the NPA, HMA and CHS, the current parent company, agreed to cooperate with the investigation, report allegations or evidence of violations of Federal health care offenses, and ensure that their compliance and ethics program satisfies the requirements of an amended and extended CIA between CHS and HHS-OIG.

In addition, an HMA subsidiary, Carlisle HMA, LLC, formerly doing business as Carlisle Regional Medical Center, has agreed to plead guilty to one count of conspiracy to commit health care fraud.  The plea agreement remains subject to acceptance by the court.  Up until 2017, Carlisle HMA, LLC owned and operated Carlisle Regional Medical Center, an acute care hospital located in Carlisle, Pennsylvania.  Carlisle HMA, LLC was charged in a criminal information filed today in the District of Columbia with conspiracy to commit health care fraud.

According to admissions made in the resolution documents, HMA instituted a formal and aggressive plan to improperly increase overall emergency department inpatient admissions at all HMA hospitals, including at Carlisle Regional Medical Center.  As part of the plan, HMA set mandatory company-wide admission rate benchmarks for patients presenting to HMA hospital emergency departments – a range of 15 to 20 percent for all patients presenting to the emergency department, depending on the HMA hospital, and 50 percent for patients 65 and older (i.e. Medicare beneficiaries) - solely to increase HMA revenue.  HMA executives and HMA hospital administrators executed the scheme by pressuring, coercing and inducing physicians and medical directors to meet the mandatory admission rate benchmarks and admit patients who did not need impatient admission through a variety of means, including by threatening to fire physicians and medical directors if they did not increase the number of patients admitted.

“HMA pressured emergency room physicians, including through threats of termination, to increase the number of inpatient admissions from emergency departments—even when those admissions were medically unnecessary,”  said Assistant Attorney General Benczkowski.  “Hospital operators that improperly influence a physician’s medical decision-making in pursuit of profits do so at their own peril.  Where we find such conduct, the Criminal Division’s Health Care Fraud Unit, together with our Civil Division and law enforcement colleagues, will aggressively prosecute those responsible to the fullest extent of the law.”

HMA also agreed to pay $216 million as part of a related civil settlement. The civil settlement resolves HMA’s liability for submitting false claims between 2008 and 2012 as part of its corporate-wide scheme to increase inpatient admissions of Medicare, Medicaid and the Department of Defense’s (DOD) TRICARE program beneficiaries over the age of 65.  The government alleged that the inpatient admission of these beneficiaries was not medically necessary, and that the care needed by, and provided to, these beneficiaries should have been provided in a less costly outpatient or observation setting.  HMA agreed to pay $62.5 million to resolve these allegations with $61,839,718 being paid to the United States and $706,084 being paid to participating States.

The civil settlement also resolves allegations that during the period from 2003 through 2011, two HMA hospitals in Florida, Charlotte Regional Medical Center and Peace River Medical Center, billed federal health care programs for services referred by physicians to whom HMA provided remuneration in return for patient referrals.  To induce patient referrals, Charlotte Regional provided a local physician group with free office space and staff, as well as direct payments, which purportedly covered overhead and administrative costs incurred by the group for its management of a Charlotte Regional physician.  HMA also provided another local physician with free rent and upgrades to his office space.  HMA agreed to pay $93.5 million to resolve these civil allegations, with the United States receiving $87.96 million, and the State of Florida receiving $5.54 million.

Additional allegations that are resolved by the civil settlement are that between 2009 and 2012, two former HMA hospitals, Lancaster Regional Medical Center and Heart of Lancaster Medical Center in Pennsylvania, billed federal health care programs for services referred by physicians with whom the facilities had improper financial relationships.  These relationships stemmed from HMA’s excessive payments to (1) a large physician group in return for two businesses owned by the group and for services allegedly performed by the group, and (2) a local surgeon that exceeded the value of the services provided.  The government alleged that these arrangements were structured in this manner to disguise payments intended to induce the referral of patients.  HMA agreed to pay $55 million to the United States to resolve these civil allegations.

Finally, the civil settlement will also resolve claims that Crossgates Hospital, an HMA facility in Brandon, Mississippi, leased space to a local physician from Jan. 15, 2005 through Jan. 14, 2007, but required the physician to pay rent for only half of the space he was actually occupying, in return for patient referrals to Crossgates Hospital.  HMA agreed to pay $425,000 to the United States to resolve these civil allegations.

Federal law, including the Anti-Kickback Statute and the Stark Law, prohibits hospitals from providing financial inducements to physicians for referrals.  These provisions are designed to ensure that physician decision-making is not compromised by improper financial incentives.

“Billing for unnecessary hospital stays wastes federal dollars,” said Assistant Attorney General Hunt.  “In addition, offering financial incentives to physicians in return for patient referrals undermines the integrity of our health care system.  Patients deserve the unfettered, independent judgment of their health care professionals.”

“The payment of kickbacks in exchange for medical referrals undermines the integrity of our healthcare system,” said U.S. Attorney Chapa Lopez. “Today’s resolution should remind healthcare providers of their duty to comply with the law, and the heavy price to be paid for corrupt practices committed by their executives. Our Civil Division will continue to invest itself in the pursuit of health care providers who violate the law for personal gain.” 

“Our office will continue to enforce prohibitions on improper financial relationships between health care providers and their referral sources, as these relationships can serve to corrupt physician judgment about a patient’s true health needs,” said U.S. Attorney Fajardo Orshan.  “We will devote all necessary resources to ensure that those rendering medical care do so for the sole benefit of the patient and in compliance with the law.”

“By manipulating patient status, HMA increased Medicare costs and pocketed taxpayer funds to which it was not entitled,” said U.S. Attorney Peeler.  “Our Medicare patients and our taxpayers deserve better, and I am proud that justice has been done. Nonetheless, we will continue to pursue those hospitals in our district that would seek to take advantage of the Medicare Program.”

“Government healthcare programs are vital to the welfare of our communities,” said U.S. Attorney Murray for the Western District of North Carolina, where two HMA hospitals were located.  “We will aggressively pursue providers that fraudulently inflate charges to government programs and divert scarce resources from those in need into their own pockets.”

“Our resolution of this matter and the significant recovery we have obtained show once again that no matter how complex the scheme is, we will find it, stop it, and punish it,” said U.S. Attorney McSwain.  “HMA covered up kickbacks for patient referrals with sham joint venture agreements, lease payments, and management agreements. These sorts of improper physician inducements are a form of ‘pay to play’ business practices that will not be tolerated.  Healthcare institutions cannot pad their bottom line at the expense of the American taxpayers.  And most importantly, this conduct must be rooted out because it gets in the way of providing top-notch patient care to American citizens.”

“It is critically important to all of us that the patients’ interest drive the physicians’ decisions on care,” said U.S. Attorney Lydon.  “Unnecessary hospital admissions not only drive up costs but can cause damage to patients and cannot be tolerated.”    

The government further alleged that from September 2009 through December 2011, certain HMA hospitals submitted claims to Medicare and Medicaid seeking reimbursement for falsely inflated emergency department facility charges.  HMA agreed to pay $12 million to resolve these civil allegations, with $11.028 million being paid to the United States and $972,000 being paid to participating States.

“Compliance with government healthcare rules requires that patients only receive treatment they actually need,” said HHS-OIG Acting Assistant Inspector General for Investigations Jackson.  “Then government programs must be billed just for those services.  No more, no less.  Let there be no doubt, we will continue to protect federal healthcare programs and beneficiaries by holding provider organizations fully accountable.”    

“This settlement is a result of the FBI’s hard work and dedication to hold companies accountable for their role in healthcare fraud and abuse,” said FBI Assistant Director Johnson.  “The FBI will not stand by when there are allegations that a company operates a corporate wide scheme to increase their financial gain at the expense of the U.S. government. We appreciate those who come forward with allegations of criminal misconduct and recognize the importance of the public’s assistance in our work.”

The allegations resolved by the settlement were originally brought in eight lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery.  The eight qui tam cases, which were filed in various districts and transferred to the U.S. District Court for the District of Columbia as part of a multi-district litigation presided over by the Honorable Reggie B. Walton, are captioned: United States ex rel. Brummer v. HMA, Inc., 3-09-cv-135 (CDL) (M.D. Ga.); United States ex rel. Williams v. HMA, Inc., 3:09-cv-130 (M.D. Ga.); United States ex rel. Plantz v. HMA, Inc., 13-CV-1212 (N.D. Ill.); United States ex rel. Miller v. HMA, Inc., 10-3007 (E.D. Pa.); United States ex rel. Mason & Folstad v. HMA, Inc., 3:10-CV-472-GCM (W.D.N.C.); United States ex rel. Nurkin v. HMA, Inc., 2:11-cv-14-FtM-29DNF (M.D. Fla.); United States ex rel. Jacqueline Meyer & Cowling v. HMA, Inc., 0:11-cv-01713-JFA (D.S.C.); and United States ex rel. Paul Meyer v. HMA, Inc., 11-62445 cv-Williams (S.D. Fla.).

The whistleblower in United States ex rel. Nurkin will receive approximately $15 million as a share of the recovery, and the whistleblowers in United States ex rel. Miller will receive approximately $12.4 million as their share of the recovery.  The whistleblower shares to be awarded in the remaining cases have not yet been determined.

These matters were investigated by the Civil Division’s Commercial Litigation Branch; the Health Care Fraud Unit of the Criminal Division’s Fraud Section; the U.S. Attorneys’ Offices for the Middle District of Florida, Southern District of Florida, Middle District of Georgia, Northern District of Illinois, Western District of North Carolina, Eastern District of Pennsylvania and the District of South Carolina, the FBI Healthcare Fraud Unit Major Provider Response Team, HHS-OIG and Defense Health Agency Program Integrity.  On behalf of the States, an investigative/settlement team with members from North Carolina, Massachusetts, Virginia, Washington, and Florida assisted with the investigation and resolution of these matters. 

The government’s resolution of this matter illustrates the government’s emphasis on combating healthcare fraud and marks another achievement for the Health Care Fraud and Enforcement Action Team (HEAT) initiative, a partnership between the Department of Justice and the Department of Health and Human Services to focus efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.  One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

Except for those facts admitted to in the guilty plea and in the Non-Prosecution Agreement, the claims resolved by the settlement are allegations only, and there has been no determination of liability.

If you believe you are a victim of this offense, please call (888) 549-3945.

MACON, Ga. – A Lilburn, Georgia resident currently in custody was charged in a 20-count indictment for allegedly filing false tax returns totaling $165,212,271, collecting at least $2,897,192.74 in undeserved tax refunds, announced Charlie Peeler, the U.S. Attorney of the Middle District of Georgia.

Marquet Antwain Burgess Mattox, AKA Marquet Antwain Burgess Mattox El, AKA Marquet Burgess Mattox, AKA Asim Ashunta El, AKA Asim El Bey, 48, of Lilburn, Georgia was charged by a federal grand jury on September 17 with nine counts of wire fraud, ten counts of false claims against the U.S. Government and one count of theft of government funds. The indictment was unsealed on October 16. Following a hearing on Friday, October 23, U.S. Magistrate Judge Charles H. Weigle ordered Mattox remain in custody. An indictment is merely an allegation, and all defendants are presumed innocent unless and until proven guilty in a court of law.

According to the indictment, Mattox is accused of filing fraudulent Form 1041 U.S. Income Tax Returns with the IRS for tax years 2015 through 2017 for at least twelve different trusts. The IRS relied upon information from submitted Forms 1041 in determining and issuing refunds. The indictment alleges that Mattox knew at the time he submitted the tax forms that none of the trusts had any business activities, that the trusts had not earned the income as claimed and that the withholding payments had in fact not been made to the IRS as claimed. Mattox is accused of falsely claiming tax refunds for these purported trusts in the amount of approximately $165,212,271. The IRS issued approximately $2,897,192.74 in federal income tax refunds from one of the alleged fraudulent trusts which the defendant was not entitled to receive.

IRS-CI’s Atlanta Division and Office of the U.S. Treasury Inspector General for Tax Administration are investigating the case. Assistant U.S. Attorney Lyndie M. Freeman of the Middle District of Georgia’s Complex Frauds Unit is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362. The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

COLUMBUS, Ga. – The CEO of a New York-based venture capital firm who conspired to defraud more than 50 investors of millions of dollars in a pre-IPO scam was sentenced to prison today for his crime.

George Iakovou, 30, of New York, New York, was sentenced to serve 97 months in prison to be followed by three years of supervised release by U.S. District Judge Clay Land today. Iakovou pleaded guilty to one count of conspiracy to commit wire fraud on Aug. 8. Iakovou is not eligible for parole.

“George Iakovou’s financial scheme and lies harmed people, causing irreparable damage to his victims,” said U.S. Attorney Peter D. Leary. “Law enforcement at every level in the Middle District of Georgia will continue to do everything in our power to hold con artists accountable for their crimes.”

“George Iakovou’s greed will have an everlasting effect on the victims he defrauded,” said Resident Agent in Charge Clint Bush of the U.S. Secret Service’s Albany, Georgia, Resident Office. “The United States Secret Service will continue to investigate, arrest and support the successful prosecution of the criminals who choose to commit this and other types of financial fraud in our community and around the nation.”

According to court documents, in July 2021, the U.S. Secret Service (USSS) began investigating a pre-IPO (initial public offering) scheme orchestrated by Iakovou, the CEO of Vika Ventures LLC, a boutique venture capital firm headquartered in New York which purported to specialize in pre-IPO investments in various early and late-stage private companies.

Iakovou advertised that Vika had access to buy pre-IPO shares in private companies such as Palantir, Airbnb, SpaceX and Stripe. He claimed that once these private companies went public and the mandatory six-month lockout period expired, Vika would distribute the purchased shares to the investors. In fact, Iakovou had neither access to pre-IPO shares in the advertised companies nor owned the shares at the time of the solicitations. While Iakovou did take the victim-investors’ money, he did not purchase or acquire any of the promised shares. Iakovou established fake email domains, posed as representatives from private equity brokerage firms and created fake bank statements among other tricks to carry out his fraud scheme.

USSS identified more than 50 victim-investors from across the country who provided capital to Vika between Jan. 2020 and Dec. 2021, including two victims in the Middle District of Georgia. A review of bank records for Vika’s investor account showed that identified victim-investors paid Vika approximately $5,958,505 for the purchase of pre-IPO shares of select private companies, but none received their promised shares. Iakovou rerouted the money to several accounts, including personal bank accounts, and used the money for private jet charters, cars, home furnishings, artwork, luxury clothing and accessories. For example, Iakovou spent $135,528 on a 2021 Corvette Stingray and more than $500,000 on luxury watches, including $231,799 on a single Patek Philippe timepiece.

This case was investigated by the U.S. Secret Service.

Assistant U.S. Attorney Christopher Williams prosecuted the case.

MACON, Ga. – A Macon man who participated in a scheme to defraud a community bank pleaded guilty for his role in the conspiracy.

Garland Stephens, 66, of Macon, pleaded guilty to one count of conspiracy to defraud a financial institution before U.S. District Judge Marc Treadwell on Oct. 27. Stephens faces a maximum of 30 years in prison to be followed by five years of supervised release and a $1,000,000 fine. Sentencing is scheduled for Feb. 1, 2023.

“The fraudulent scheme in this case harmed a local business, costing them hundreds of thousands of dollars,” said U.S. Attorney Peter D. Leary. “Protecting citizens and small businesses from fraudsters and ultimately holding them accountable for their criminal actions is a high priority for this office and our law enforcement partners.”

“The FBI works hard to make sure greed like this doesn’t pay off and those who commit fraud are held accountable,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Let this plea and the possibility of 30 years in prison serve as a warning to others to think twice before attempting to steal from the U.S. banking system.”

According to court documents, Stephens was recruited in 2018 by co-conspirator William Spigener, III, 34, of Columbus—an AgGeorgia loan officer at the time—to pretend to be a borrower in order to obtain fraudulent loans from AgGeorgia. Spigener enlisted Stephens and other straw borrowers, and in exchange for using their personal identifying information and appearing at loan closings, he would give them a portion of the loan proceeds, collecting the majority of the money himself. Spigener would create documentation to ensure the loan applications were approved, when in reality, none of these applicants were engaged in any type of farming activity and did not have the income or collateral to support the loans received from AgGeorgia. 

Specifically, Stephens was listed falsely as a farm equipment seller on two approved loan applications. For each of these loans, checks were made out in Stephens’ name and co-conspirator Eary Fuller, 57, of Macon, in June and Oct. 2018. Fuller and Stephens endorsed the loan checks and deposited them. Spigener retained most of the loan proceeds, with some of the money going to Fuller and Stephens.

Stephens then agreed to obtain a fraudulent loan with AgGeorgia in his own name. Spigener used Stephens’ personal information to file the fraudulent loan, and also created and submitted false financial information and farm operating expenses. Stephens was approved for an $85,000 loan.  In reality, Stephens did not have a farm requiring any operating expenses. Stephens was present for the loan closing on Jan. 25, 2019, and collected a $30,000 check, which he signed. The majority of the money was transferred to Spigener. Spigener and other co-conspirators have entered guilty pleas in this case; for more information, please go to: https://www.justice.gov/usao-mdga/pr/former-aggeorgia-loan-officer-sentenced-committing-fraud.

This case was investigated by the FBI.

U.S. Attorney Elizabeth Howard is prosecuting the case.

MACON, Ga. – A former bank loan officer entered a guilty plea in federal court yesterday in an asset misapplication scheme involving $1.2 million dollars.

Mitchell Fowler, 35, of Hawkinsville, Georgia, pleaded guilty to one count of misapplication by a bank employee and one count of embezzlement by a bank employee before U.S. District Judge Tilman E. “Tripp” Self, III on Nov. 15. Fowler faces a maximum sentence of 30 years in prison and a $1,000,000 fine. Sentencing is scheduled for March 7, 2023. 

According to court documents, Fowler was a loan officer at SunMark Community Bank in Bonaire, Georgia, where he handled most of the bank’s construction loans and therefore had the ability to transfer funds between customer accounts. Around Nov. 2019, Fowler began to take funds from customers’ accounts without their authorization and used those funds to pay on and fund loans for other customers. The unauthorized withdrawals and transfers made from these accounts ranged from $1,250 to $100,000 per transaction. None of these withdrawals or transfers were authorized by the customers from whom the funds were taken.  

The issue came to SunMark’s attention on Feb. 16, 2021, when a customer called regarding $400,000 that was missing from their account. The bank discovered that Fowler had electronically transferred the money to another customer’s account over the course of a week. As SunMark dug deeper, they discovered Fowler had transferred money out of other accounts without authorization. SunMark calculated the loss to be $1,129,000. SunMark was able to recoup most of the money through their own prevention and mitigation efforts. The remaining $273,173.71 that they were not able to recoup was repaid by Fowler.

“Although all of the embezzled funds were recovered, it does not reduce the fact that this former bank employee was playing Russian roulette with other people’s money, putting their hard-earned savings in jeopardy and a community bank at risk,” said U.S. Attorney Peter D. Leary. “Fraud of any kind is a serious crime that our office will not ignore. We will continue to work with our law enforcement partners to hold these corporate fraudsters accountable.”

“Banks are institutions that people trust with their life savings, and Fowler tarnished that trust by violating his position and greedily misusing customers money,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Fortunately, an observant customer noticed missing funds and notified the bank, saving further loss to the bank and other customers. Thanks to our partnership with the Perry Police Department, Fowler will pay significantly for his crimes.” 

The case was investigated by the Perry Police Department and FBI.

Assistant U.S. Attorney Elizabeth Howard is prosecuting the case for the government.