Northern District of Alabama
Press releases recorded for this federal judicial district.
Chilton County Man to Serve to Life in Prison for Transporting Two Minors and Producing, Transporting, and Possessing Child PornographyRead the Press Release
BIRMINGHAM – Chilton County man sentenced today for transporting two minor girls for illegal sexual activity and producing, transporting, and possessing child pornography, announced U.S. Attorney Jay E, Town and FBI Special Agent in Charge Johnnie Sharp Jr.
U.S. District Judge Madeline H. Haikala sentenced BRUCE NICHOLSON, 56 to life in prison.
NICHOLSON was convicted on October 18, 2018, for production, transportation, and possession of child pornography and transporting two minors with the intent to engage in unlawful sexual activity with them. According to the sentencing memorandum, for many years Nicholson had sexually abused both girls and fled the state of Alabama with them in 2012. They were on the road for more than month and spent time in Florida, North Carolina, and New York, before law enforcement authorities found them in Kentucky.
“The sentence handed down today ensures that this man, who stole the innocence of two girls, and a large part of their childhoods, can no longer take advantage of them or any other vulnerable child,” Town said. “Nicholson gave no sanctuary to these innocent girls and now has been sent away to federal prison for life where there is no sanctuary of parole.”
“A long prison sentence is well deserved for the defendant in this case,” SAC Sharp said. “The FBI will continue to use their tools to identify those who commit these horrendous acts, and will seek justice on behalf of their victims.”
FBI investigated the case, which Assistant U.S. Attorneys J.B. Ward and Don Long prosecuted.
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Number of Federal Defendants Charged and Imprisoned Rises in 2018Read the Press Release
BIRMINGHAM – The number of people charged with federal crimes in the Northern District of Alabama in 2018 and the percentage of those defendants sentenced to prison was the highest since 2007, announced U.S. Attorney Jay E. Town.
“I believe that our numbers are a reflection of effort and my office turned in a tremendous effort in FY18,” Town said. “Each Division is coordinating with the others in a true phalanx and, as a result, the office was more productive than at any time in recent memory. Because of this team effort, the citizens of NDAL are safer, our communities are better, and our partnerships with local law enforcement are stronger than ever before.”
The priorities of the Department of Justice to reduce illegal gun crimes, reduce violent crime, pursue criminal immigration matters, to aggressively address the opioid epidemic in Alabama, and protect the public fisc were all successfully executed by the Northern District in 2018. The U.S. Attorney’s Office showed vast improvement in all categories in 2018 over the previous fiscal year, which was itself one of the most productive years in over a decade.
The data provided by the Department of Justice indicates that the Northern District’s conviction rate of 99 percent is the highest since at least 2004. Defendants charged totaled 575 for Fiscal Year 2018, up 6.5% from the 540 defendants charged in FY 2017. The number of defendants sentenced to prison in 2018 rose 19%, from 325 in 2017 to 387 in 2018.
The 259 defendants charged with violent crimes in 2018 was an 80% increase over the 144 charged with violent crimes in 2015. The 169 defendants charged with drug-related crimes in 2018 was the largest number since 2008.
Illegal firearms prosecutions rose 27% in FY 2018 to 286, from 225 in FY 2017. FY 2018 marked the largest number of illegal firearms prosecutions ever recorded in the Northern District of Alabama.
In FY 2018, the prosecution of criminal immigration cases saw a 116% increase in the number of defendants found guilty, which is the largest increase in the history of the Northern District of Alabama.
Our Civil Division achieved favorable judgments in nearly every category of litigation.
Our Appellate Division was successful in all civil and criminal appeals.
In addition to the prosecutorial numbers, the Department of Justice, through grant funding, invested over $8.5 million last year in the Northern District of Alabama.
Beware of Fraudulent Tax Return Preparers and Tax Schemes PromotersRead the Press Release
BIRMINGHAM – With the tax deadline quickly approaching for individual taxpayers, it is important to be aware of tax scams as well as the importance of being compliant in filing and paying federal taxes timely. Tax cheats are becoming more sophisticated in their schemes and are finding new ways to cheat the system as well as gaining access to your personal and tax information.
“As the tax deadline approaches it is important that our citizens know that tax fraud and schemes is an increasingly serious problem,” U.S. Attorney Jay E. Town said. “The U.S. Attorney’s Office and IRS-Criminal Investigation will continue to aggressively pursue those who attempt to defraud America’s tax system and cheat the public treasury.”
“We have IRS Special Agents located here in Alabama working around the clock to uncover, stop and work with the U.S. Attorney’s Office in prosecuting tax crimes. With the filing season coming to an end, it’s important that the public be aware of various tax schemes and report the scheme to either the IRS or their local police department,” said Thomas J. Holloman, Special Agent in Charge of IRS-CI, Atlanta Field Office.
The U.S. Attorney’s Office for the Northern District of Alabama, along with agents of IRS-Criminal Investigation and other law enforcement partners, is actively engaged in investigating various ways of committing tax fraud as well as combatting those criminals willing to steal identities and commit tax fraud for the unsuspecting public. As of last filing season, multiple tax investigations have been ongoing in our jurisdiction. Approximately 8 convicted individuals have been sentenced as a part of fraudulent tax schemes since May of 2018 in the Northern District of Alabama. The following are highlights of some of those cases:
Pamela Whitt
On November 27, 2018, Pamela Whitt of Bessemer, AL, was sentenced to two years in federal prison, to be followed by one year of supervised release and ordered to pay restitution of $146,177 to the IRS for filing false tax returns to the IRS. Whitt made false representations on her 2011 and 2012 individual tax returns by willfully underreporting receipts from her business and further falsely listed her filing status as single. The receipts related to over 1,000 federal income tax returns prepared. Whitt also filed false tax returns for her clients, to inflate the amount of tax refund they would receive.
Joel Gilbert & David Roberson
On October 24, 2018, Former Alabama State Representative David Roberson was sentenced to two years, six months in federal prison, to be followed by one year of supervised release and a $25,000 fine and Joel Gilbert of was sentenced to five years in federal prison, to be followed by two years of supervised release and a $25,000 fine with 200 hours of community service for their involvement in a Birmingham bribery scheme in which Gilbert bribed Robinson with a $375,000 contract paid to him through his non-profit called the Oliver Robinson Foundation. Robinson pleaded guilty to a tax charge and helped assist in the jury trial against Gilbert.
Patrice Anderson
On July 9, 2019, Patrice Anderson of Fairburn, GA, was sentenced to five years in federal prison, to be followed by one year of supervised release and ordered to pay restitution of $86,703 to the IRS for preparing filing fraudulent tax returns. Anderson filed tax returns claiming refundable credits to which her clients were not entitled so that they could receive much larger refunds from the government than they were eligible to receive. In return, Anderson would charge the clients abnormally high fees – up to $3,000 per fraudulent return – to file their taxes, according to testimony. The court determined that Anderson, who operated Queen’s Fast Tax from 2009 through 2012, had filed tax returns claiming more than $3.6 million in refunds in 2010 and 2011 alone, and that at least half the claimed refunds in those years were fraudulent.
Lanika Brown & Lashan Brown
On May 15, 2018, Lashan Brown was sentenced to three years, ten months in federal prison, to be followed by three years of supervised release and ordered to pay restitution of $120,671 to the IRS and Lanika Brown was sentenced to two years in federal prison, to be followed by three years of supervised release and ordered to pay restitution of $71,500 to the IRS for preparing and filing false tax returns with the IRS. Starting in 2010, Lashan Brown and Lanika Brown were return preparers at Brown Tax Service located in Tuscaloosa, AL. The Brown’s conspired together to prepare at least twenty fraudulent tax returns claiming false education credits for the tax years 2012 and 2013 for a total of $65,500 claimed in fraudulent refunds.
Go to https://www.irs.gov/newsroom/irs-concludes-dirty-dozen-list-of-tax-scams-for-2019-agency-encourages-taxpayers-to-remain-vigilant-year-round for more information on the Dirty Dozen for the 2019 filing season.
For in person interview requests or questions, please contact the Atlanta Field Office IRS-Criminal Investigation Public Information Officer at [email protected].
For further information from the United States Attorney’s Office, please contact the U.S. Attorney’s Office Public Information Officer at [email protected].
ATF Director Thomas Brandon Visits Huntsville, ALRead the Press Release
Huntsville --- Yesterday, ATF Director Thomas Brandon visited Huntsville, AL for the grand opening the National Integrated Ballistics Information (NIBIN) National Correlation and Training Center. Having this facility in the Northern District of Alabama is representative of the growth and capabilities in Huntsville, and the impressive advancement that law enforcement has made in order to stay ahead of criminal threats to the public.
The Grand Opening was attended by ATF Director Tom Brandon, several members of his leadership team, USA Louis Franklin (MDAL), USA Zach Terwilliger (EDVA), USA Jeff Jensen (EDMO), ATF ASAC David Hyche, Congressman Mo Brooks (AL-5), Huntsville Mayor Tommy Battle, Madison County District Attorney Rob Broussard, Madison County Sheriff Kevin Turner, Huntsville Police Chief Mark McMurray, members of the National Crime Gun Intelligence Governing Board, and many other dignitaries and members of law enforcement.
National Integrated Ballistics Information Network, or NIBIN, is a national database of digital images of spent bullets, shell casings, and cartridge cases that were found at crime scenes or test-fired from confiscated weapons. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) manages the system and provides the equipment to crime labs around the country. There are NIBIN machines in many areas in Alabama, to include Birmingham, Huntsville, Mobile, Montgomery and are being considered in several other cities.
“The NIBIN system is DNA for ballistics. The NIBIN National Correlation & Training Center is where we test that ballistic DNA,” U.S. Attorney Jay Town said. “The ability to take a shell casing from a crime scene in California and match it with shell casings found in Birmingham or Huntsville is next generation crime intelligence. This ATF-driven technology is bad for bad guys. More shooters will be captured. More shooters will go to federal prison. And as a result, more justice for victims and more neighborhoods will be returned to their rightful owners…the law abiding citizens who have lived there for too long behind locked doors.”
Man Who Led Police on Chase on Lookout Mt. SentencedRead the Press Release
BIRMINGHAM – A federal judge on Tuesday sentenced a northeast Alabama man for illegal gun possession, announced U.S. Attorney Jay E. Town and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
U.S. District Judge Karon O. Bowdre sentenced Dennis John Johnson, 43, to 87 months in prison and three years of supervised release.
Dennis John Johnson pled guilty in November 2018 to the federal charge of being a convicted felon in possession of a Smith & Wesson .40 Caliber semi-automatic pistol. According to the indictment Johnson had prior felony convictions of second-degree assault in Marshall County Circuit Court in November 1997, unlawful possession of a controlled substance in Etowah County Circuit Court in June 2001, and third-degree robbery in Marshall County Circuit Court in April 2014.
“Career criminals and illegal firearms are a dangerous combination,” Town said. “Anyone who endangers the lives of law enforcement and civilians trying to escape justice will be prosecuted vigorously.”
Johnson had the handgun with him when police arrested him on April 9 as he ran from a pickup truck he abandoned on Georgia Highway 48 in Chattooga County, Ga., according to a Fort Payne Police arrest report. Johnson jumped from the truck after fleeing police in Fort Payne and speeding away along U.S. Highway 11 to Hammondville. His flight took him onto Alabama Highway 117 and through Valley Head and Mentone before crossing the state line into Georgia, according to the arrest report.
Fort Payne officers had tried to pull over the pickup truck because the license plate was registered to a different vehicle, the police report said. In the ensuing chase, speeds topped 100 mph as Johnson ran vehicles off the narrow roads, swerved toward police vehicles and aimed his speeding truck at the Hammondville police chief, who was running across the road to deploy a stop strip. The first Fort Payne police vehicle in pursuit behind Johnson hit the stop strip and crashed, seriously injuring one Fort Payne officer, according to the police report.
ATF investigated the case in conjunction with the Fort Payne Police Department, DeKalb County Sheriff’s Office and the Chattooga County, Ga., Sheriff’s Office. Assistant U.S. Attorney Jonathan S. Keim prosecuted the case
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Huntsville Man Convicted on Multiple Counts of Tampering with Vehicle Odometers and Bank FraudRead the Press Release
Huntsville – A federal jury on Thursday, April 4, 2019, convicted a Huntsville man on multiple counts of tampering with vehicle odometers and three counts of bank fraud, announced U.S. Attorney Jay E. Town and U.S. Secret Service Special Agent in Charge Michael Williams.
Following a four day trial before U.S. District Judge Abdul K. Kallon, and only a 20-minute deliberation by the jury, Randy Eugene Greene, 62, was convicted of 11 counts of tampering with vehicle odometers and 3 counts of bank fraud. A sentencing date has been set before Judge Abdul K. Kallon on July 17, 2019.
Randy Eugene Greene, d/b/a RJ’s Auto Sales on South Memorial Parkway in Huntsville, was convicted by the jury of 11 counts of tampering with vehicle odometers and 3 counts of bank fraud. In the 11 counts related to odometer tampering, the offenses occurred between approximately October 1, 2014, and November 2, 2016. The largest discrepancy in the changed odometer reading was approximately 218,678 miles. The average discrepancy in the mileage on the odometers for the various vehicles was 122,046 miles. In the three counts related to Bank Fraud, Greene engaged in a scheme to defraud Redstone Federal Credit Union. The fraud occurred when the credit union financed three of the vehicles on which the odometers had been changed. Greene was served with a notice of forfeiture related to the bank fraud counts, which includes but is not limited to a money judgement in the amount of $28,000.
During the trial, the government presented testimony from the eleven victims who purchased the vehicles from Greene and his business. All said that they would not have bought the vehicles or would not have paid what they did had they known the true mileage on the vehicles. The government also presented evidence from auto auction dealers who testified about the mileage that was on the vehicles when they were originally sold to Greene. Witnesses, as well as Greene, who took the witness stand, said that changing odometer readings is a clear violation of federal law.
“This type of economic fraud hurts both consumers and financial institutions,” Town said. “Our investigators and prosecutors will continue to protect the public from fraud whenever it occurs so that they have confidence when making vehicle purchases, what is traditionally the second largest consumer purchase Americans make. This conviction reinforces the message to every individual who would engage in this kind of thieving behavior for personal gain that the United States Attorney’s Office will bring the weight of a federal prosecution upon them and make their victims whole.”
“It is very important that consumers and financial institutions know that the vehicle being purchased from any auto dealership represents the true odometer reading,” Williams said. “If you have purchased a vehicle from RJ’s Auto Sales of Huntsville within the last five years and believe you are a victim of odometer rollback fraud, please contact the U.S. Secret Service at 256-922-5408.”
Tampering with an odometer carries a maximum 3-year prison sentence and a maximum $250,000 fine.
Bank fraud carries a maximum penalty of 30 years in prison and a maximum $1,000,000 fine.
The U.S. Secret Service investigated the case, which Assistant United States Attorneys Russell E. Penfield and Leann White prosecuted.
Jefferson County Man Pleads Guilty to Filing a False Tax Return Omits More than $300,000 in Business IncomeRead the Press Release
BIRMINGHAM - A Jefferson County man pled guilty today in federal court to filing a false tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Jay E. Town and Internal Revenue Service Criminal Investigation Special Agent in Charge Thomas J. Holloman.
According to court documents, LARRY WAYNE BATTLE owned and operated a tax preparation business in Jefferson County, Alabama. On his 2014 tax return, Battle filed a Schedule C for his tax preparation business that reported gross receipts of $128,000. He understated his gross receipts by approximately $321,638, resulting in a tax loss of $163,401.
“There is zero tolerance for tax preparers who cheat on their own income taxes,” said U.S. Attorney Jay E. Town. “Federal prosecutors in this district will continue to make prosecuting these cases a priority.”
“Return preparers have a duty to be honest and truthful on their tax returns they submit throughout the filing season, including their own,” said Thomas J. Holloman, Special Agent in Charge of IRS-CI for the Atlanta Field Office. “This guilty plea is another success in our efforts of defeating the tax cheat and holding them accountable for their actions.”
Sentencing is scheduled for July 30, 2019. Battle faces a maximum sentence of three years in prison, as well as a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Town commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Allison Garnett and Assistant United States Attorney Melissa Atwood, who are prosecuting the case.
Federal Grand Jury Indicts Sylacauga Man for Attempted Child EnticementRead the Press Release
BIRMINGHAM - A federal grand jury in March indicted a Sylacauga man for attempted coercion and enticement of a minor announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp, Jr.
JERRY WAYNE HAMILTON, 49, is charged in an indictment filed in the U.S. District Court with attempting to coerce and entice an alleged 15 year old girl to meet him for sexual acts. When Hamilton drove to meet the minor child for a sexual encounter, he was instead met by law enforcement.
“Our office along with our federal and state law enforcement partners stand committed to see child predators brought to justice,” Town said. “The tolerance for those who prey on innocent children is none.”
The penalty for attempted coercion and enticement of a minor is 10 years to life in prison.
FBI Birmingham Division Child Exploitation Task Force along with Mountain Brook Police Department investigated the case. Assistant U.S. Attorney R. Leann White is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Federal Grand Jury Indicts Birmingham College Student on Child Pornography ChargesRead the Press Release
BIRMINGHAM - A federal grand jury in March indicted a Birmingham college student for Advertisement, Sale, and Possession of Child Pornography announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp, Jr.
A five-count indictment filed in the U.S. District Court, charges DAVID DRAKE, 19, with advertising child pornography on the internet and selling those images and videos on the internet. Drake is charged with 1-count of advertisement of child pornography and 2-counts of sale of child pornography. Drake is also charged with 2 counts of possession of child pornography.
“Our law enforcement will continue to vigilantly monitor the internet using all available resources available to uncover child exploitation and abuse,” Town said. “These predators need to know that they will be arrested, prosecuted and once convicted, sentenced to time in a federal prison where there is no possibility for parole.”
The maximum penalty for advertisement of child pornography is a maximum of 30 years in prison.
The maximum penalty for the sale of child pornography is 20 years in prison.
The maximum penalty for possession of child pornography is 20 years in prison since the collection of images and videos include children under the age of 12 years.
FBI Birmingham Division Child Exploitation Task Force along with ALEA investigated the case. Assistant U.S. Attorney R. Leann White is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Father of a Huntsville Elementary School Shooting Victim SentencedRead the Press Release
BIRMINGHAM – A federal judge on Monday sentenced the father of a Huntsville elementary school shooting victim, announced U.S. Attorney Jay E. Town and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
U.S. District Judge Karen O. Bowdre sentenced LETROY COLE, JR, 41 to 26 months in prison and three years of supervised release.
Letroy Cole Jr., 41, pled guilty in November to the federal charge of being a convicted felon in possession of firearm. Cole possessed a Kel Tec model P-32 .32-caliber semi-automatic pistol. Cole’s son, a second-grader, found the gun hidden in their home and took it to school to show it to a friend. On September 17, 2018, the second-grader accidently shot himself while showing it to a friend, in a restroom at Blossomwood Elementary school.
“Felons in unlawful possession of firearms are not only a threat to all of us when those weapons are illegally in their hands, but made worse when those weapons get into the hands of children”, Town said. “A child was shot and injured with the handgun that Cole illegally possessed. This situation could have been much worse. We are thankful for the efforts of the Madison County District Attorney, Huntsville Police Department, and the ATF in once again assuring the public with this federal prosecution that illegal gun crimes are taken seriously.”
“ATF Crime Gun Intelligence Centers are the driving force to reduce the potential for violent crime and disrupting the shooting cycle that plagues our neighborhoods, to include firearms recovered in the school systems.” Watson said.
ATF investigated the case, in partnership with the Huntsville Police Department and the Madison County District Attorney’s Office. Assistant U.S. Attorney Robert J. Becher Sr. prosecuted the case.
Alabama Man Pleads Guilty to Filing a False Tax ReturnRead the Press Release
A Jefferson County man pleaded guilty today in the U.S. District Court for the Northern District of Alabama to filing a false tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Jay E. Town for the Northern District of Alabama.
According to court documents, Larry Wayne Battle owned and operated a tax preparation business in Jefferson County, Alabama. On his 2014 tax return, Battle filed a Schedule C for his tax preparation business that reported gross receipts of $128,000. He understated his gross receipts by approximately $321,638, resulting in a tax loss of $163,401.
“There is zero tolerance for tax preparers who cheat on their own income taxes,” said U.S. Attorney Jay E. Town. “Federal prosecutors in this district will continue to make prosecuting these cases a priority.”
“Return preparers have a duty to be honest and truthful on their tax returns they submit throughout the filing season, including their own,” said Thomas J. Holloman, Special Agent in Charge of IRS-Criminal Investigation for the Atlanta Field Office. “This guilty plea is another success in our efforts of defeating the tax cheat and holding them accountable for their actions.”
Sentencing is scheduled for July 30, 2019. Battle faces a maximum sentence of three years in prison, as well as a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Town commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Allison Garnett and Assistant United States Attorney Melissa Atwood, who are prosecuting the case.
Birmingham Woman Arrested for Obstruction of Justice and Making a False StatementRead the Press Release
BIRMINGHAM – Federal agents on Tuesday arrested a Birmingham woman for obstruction of justice and making false statements to federal law enforcement, announced U.S. Attorney Jay E. Town, FBI SAC Johnnie Sharp, Jr. and U.S. Marshal Martin Keely.
VERANDA RENEE HARRIS, 59, of Birmingham, Alabama, was arrested on April 2nd on a two-count indictment for obstruction of justice and making false statements to federal law enforcement. The grand jury returned the indictment against Harris on March 28th.
On October 29, 2018, Harris followed and photographed a juror in the employee break room at the juror’s workplace following a guilty verdict against Harris’ brother, Derrick Johnson, in federal court in October 2018, according to the indictment.
Harris was interviewed by representatives of the FBI and U.S. Marshals Service about her contact with the juror. During the interview, Harris continued to deny the juror’s allegations, despite being confronted with evidence from audio and video recordings.
“Jury service is one of the most important duties of a United States citizen, and trial by jury is one of the most important concepts of our government,” Town said. “We take very seriously those who try to impede, influence, or intimidate jurors, whether before, during, or after trials.”
The maximum penalty for obstruction of justice is ten years in prison and a maximum fine of $250,000.
The maximum penalty for making false statements to federal law enforcement is five years in prison and a maximum fine of $250,000.
FBI and U.S. Marshals Service investigated the case, which Assistant United States Attorney John J. Geer, III is prosecuting.
Alabama Husband and Wife Business Owners Indicted for Payroll Tax FraudRead the Press Release
BIRMINGHAM - A federal grand jury returned an indictment on Thursday charging a Crane Hill, Alabama, husband and wife with five counts of failing to pay over payroll taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Jay E. Town for the Northern District of Alabama.
According to the indictment, Walter Michael Williams and Amy Butler Williams operated Dixie Steel Erectors (DSE), a commercial construction business in Hanceville, Alabama. Walter Michael Williams, president and owner of DSE, and Amy Williams, bookkeeper and office manager of DSE, were allegedly responsible for withholding and paying over DSE’s payroll taxes. The indictment charges that during 2012 and 2013, DSE accrued payroll tax liabilities and that the Williams withheld those taxes from the pay of the business’s employees, but willfully failed to pay over the withheld amounts to the Internal Revenue Service (IRS). The indictment further alleges that, while failing to pay over payroll taxes to the IRS, Walter Michael and Amy Williams used DSE’s funds to pay for numerous personal expenses, including mortgage payments on a lake house and condominium and alimony payments.
If convicted, both Walter Michael and Amy Williams face a maximum of five years in prison for each count of failure to pay over the employment taxes. In addition, they face a period of supervised release, restitution, and monetary penalties.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Town commended special agents of IRS Criminal-Investigation, who conducted the investigation, and Tax Division Trial Attorney Allison Garnett and Assistant United States Attorney Melissa Atwood, who are prosecuting the case.
Alabama Husband and Wife Business Owners Indicted for Payroll Tax FraudRead the Press Release
A federal grand jury sitting in the Northern District of Alabama returned an indictment yesterday charging a Crane Hill, Alabama, husband and wife with five counts of failing to pay over payroll taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Jay E. Town for the Northern District of Alabama.
According to the indictment, Walter Michael Williams and Amy Butler Williams operated Dixie Steel Erectors (DSE), a commercial construction business in Hanceville, Alabama. Walter Michael Williams, president and owner of DSE, and Amy Williams, bookkeeper and office manager of DSE, were allegedly responsible for withholding and paying over DSE’s payroll taxes. The indictment charges that during 2012 and 2013, DSE accrued payroll tax liabilities and that the Williams withheld those taxes from the pay of the business’s employees, but willfully failed to pay over the withheld amounts to the Internal Revenue Service (IRS). The indictment further alleges that, while failing to pay over payroll taxes to the IRS, Walter Michael and Amy Williams used DSE’s funds to pay for numerous personal expenses, including mortgage payments on a lake house and condominium and alimony payments.
If convicted, both Walter Michael and Amy Williams face a maximum of five years in prison for each count of failure to pay over the employment taxes. In addition, they face a period of supervised release, restitution, and monetary penalties.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Town commended special agents of IRS Criminal-Investigation, who conducted the investigation, and Tax Division Trial Attorney Allison Garnett and Assistant United States Attorney Melissa Atwood, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Local Agencies and Law Enforcement to Present Park Celebration for Crime Victims and SurvivorsRead the Press Release
Local Agencies and Law Enforcement to Present Park Celebration for Crime Victims and Survivors
BIRMINGHAM – Forty social service, support and law enforcement agencies will present “One Heart in the Park” on Sunday, April 7, as an uplifting day to stand in solidarity with the community's victims of crime.
First Assistant U.S. Attorney Lloyd Peeples, FBI Special Agent in Charge Johnnie Sharp, Alabama Attorney General Steve Marshall, Jefferson County Sheriff Mark Pettway, University of Alabama at Birmingham Police Chief Anthony Purcell, Birmingham Police Chief Patrick D. Smith, and VOCAL (Victims of Crime and Leniency) Director Janette Grantham will join a host of social service organizations that will be at the community festival to provide information about resources and support for crime victims and their families. The community festival is part of National Crime Victims' Rights Week 2019. The event will be held from 2 p.m. to 4 p.m. on the UAB Green, 1501 University Blvd., Birmingham. Admission is free.
The event will offer complimentary refreshments, a children’s play area, live entertainment by Lipsey Switch, local fire and law enforcement equipment and booths where participating agencies will offer services and support. The festival is made possible through the support of the Department of Justice Office of Victims of Crime, the National Center for Victims of Crime and the Junior League of Birmingham.
“One Heart in the Park” grew out of a desire to connect crime victims and members of the community with agencies and advocates that can provide assistance and services. “This occasion will emphasize how the crime victims’ field can better ensure that every crime victim has access to services and support, and how professionals, organizations, and communities can work in tandem to reach all victims,” said Jefferson County Sheriff’s Office Victim Assistance Coordinator Wanda Miller.
Increasing the public’s awareness of the array of services for crime victims, survivors and their families can be a critical service to the community by promoting healthy coping skills and support measures for those affected by crime, Miller said.
There will be a space in the park dedicated to honoring crime victims by presenting their photographs or personal statements. Those attending the event who have loved ones who were victims of crime are encouraged to bring a photograph for display, and anyone who has been a victim of crime is encouraged to bring a statement of his or her victimization. The display will enable crime victims to express the effects and challenges of being victimized, and put a face to their stories. Supplies and assistance will be available to anyone wanting to participate in the display.
According to the “Crime in Alabama” report compiled by the Alabama Law Enforcement Agency, there were 25,188 Violent Crimes reported in Alabama in 2016, a 13 percent increase over 2015. On average, there were 69 violent crimes reported per day in 2016.
Allison Dearing, executive director of One Place Metro Alabama Family Justice Center, emphasized the critical importance of a community offering supportive services for victims and survivors. “We are fortunate to have so many agencies in the Greater Birmingham area who seek to provide counseling, support groups, financial assistance, advocacy, and other needed services to individuals and their families who have been impacted by crime. If timely connections are made to appropriate resources, we know that these services have the potential to impact victims of crime in a positive way, especially in the first days and weeks following victimization.”
EVENT: One Heart in the ParkDATE: Sunday, April 7, 2019
TIME: 2 PM – 4 PM
LOCATION: UAB Green, 1501 University Blvd, Birmingham, Alabama
COST: FREE
AGE: All Ages
CONTACT: WANDA MILLER - 205-731-2814 JCSO 205-296-3837 Cell
Participating Agencies
U.S. Attorney’s Office Northern District of Alabama
Bureau of Alcohol, Tobacco, and Firearms
Homeland Security
Alabama Attorney General’s Office
FBI Birmingham
Jefferson County Sheriff’s Office
Birmingham Police Department
UAB Police & Public Safety Department
Jefferson County District Attorney’s Office - Birmingham Division
Jefferson County District Attorney’s Office - Bessemer Cutoff Division
Crisis Center of Birmingham
One Place Metro Alabama Family Justice Center
Junior League of Birmingham
Hispanic Interest Coalition Alabama - HICA
YWCA Birmingham
DHR - Bessemer
Magic City Acceptance Center
Parents Against Violence
Oasis Counseling
Children’s of Alabama - PIRC
VA Outreach - Birmingham VA Medical Center
VOCAL - Victims of Crime & Leniency
Crime Stoppers of Metro Alabama
American Legion Post 911
Prescott House Children’s Advocacy Center
MADD - Mothers Against Drunk Driving
Jefferson County Housing Authority
Impact Family Counseling
JCCEO
Gateway Counseling Center
Clay House Children’s Advocacy Center
21st District American Legion
One Roof
Volunteer Lawyers Birmingham
Center Point Fire & Rescue
CAPS Birmingham
Resource Recovery Center
Moms Demand Action
Alabama Department of Rehabilitation Services
Jefferson County 911
BPRBS – Black People Run Bike And SwimFederal Jury Convicts Birmingham Man on Drug and Gun ChargesRead the Press Release
BIRMINGHAM – A federal jury on Wednesday evening, convicted a Birmingham man, of possessing with the intent to distribute more than 50 grams of methamphetamine with the intention to distribute, two counts of carrying a gun in relation to a drug-trafficking crime, two counts of possession of a firearm by a convicted felon, and possessing with the intent to distribute methamphetamine on a second occasion, announced U.S. Attorney Jay E, Town and Bureau of Alcohol Tobacco and Firearms Special Agent in Charge Marcus Watson.
Evidence at the trial proved that on October 2, 2017, JARRETT DENARD BOYKINS, 28, of Birmingham, was found in the Pleasant Grove City Park after dark with more than 50 grams of methamphetamine and a firearm. Approximately six months later, Boykins was stopped by a Homewood police officer and found to have approximately 152 tablets that contained methamphetamine in a diaper bag in the back seat of the vehicle next to his infant child. Also inside the diaper bag was another firearm. On October 2, 2018, Alcohol, Tobacco, Firearms & Explosives agents along with officers from the Birmingham Police Department travelled to a residence in to arrest Boykins. Upon entering the residence, agents found Boykins in possession of another firearm, a non-controlled substance that was packaged for sale to appear like methamphetamine, and a large quantity of various calibers of ammunition scattered throughout the residence.
“This conviction serves as notice to every individual engaged in illegal narcotics distribution”, Town said. “Drug dealers who arm themselves to further their illegal drug trade have a bunk waiting for them in federal prison.”
“This sentence illustrates that the shooting cycle will be disrupted by the use of law enforcement and community partnerships,” Watson said. “ATF’s Crime Gun Intelligence Centers focus on removing the illegal firearms that affect our neighborhoods”.
Boykins will be sentenced by District Court Judge Abdul K. Kallon in June.
The penalty for possessing with intent to distribute 50 grams or more of methamphetamine is a minimum of 10 years in prison.
The minimum penalty for carrying a gun in relation to a drug crime is 5 years in prison. However, based on the second conviction for possessing a gun in furtherance of another drug crime, the penalty requires an extra 5 years.
The maximum penalty for being a convicted felon in possession of a firearm is 10 years in prison. Due to Boykins’ three prior robbery first-degree convictions at the time of his arrest in this case, this sentence could be increased in light of his extensive criminal history.
Bureau of Alcohol, Tobacco, Firearms, and Explosives, along with the Pleasant Grove Police Department, Homewood Police Department, and Birmingham Police Department investigated the case, which Assistant United States Attorneys Brad Felton and Alan Baty prosecuted.
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California Man Sentenced to 50 Months for Fraudulent Bank AccountsRead the Press Release
BIRMINGHAM – A federal judge on Tuesday sentenced a California man for stealing identities and using them to open accounts at the Birmingham-based BBVA Compass Bank, as well as using them for access device fraud against residents of Hickory, North Carolina, announced U.S. Attorney Jay E, Town and FBI Special Agent in Charge Johnnie Sharp, Jr.
In two cases, U.S. District Judge Madeline H. Haikala sentenced EDUARDO FERNANDO VILLANUEVA ARANGUENA, 32, of Reseda, Calif., to a combined sentence of 50 months in prison for aggravated identity theft and access device fraud. Aranguena also was ordered to pay $89,447.31 in restitution to the victims of his crimes.
“Stealing someone’s identity takes more than just their money,” Town said. “It robs them of their privacy and sense of security. Identity thieves take note: we will find you and send you on a lengthy and involuntary tour of the federal prison system.”
“A stolen identity is a powerful cloak of anonymity for criminals and terrorists and a danger to national security and private citizens alike,” Sharp said. “I particularly want to express my thanks and appreciation to the agents, both here in Alabama and North Carolina, who worked to bring Aranguena to justice.”
According to a plea agreement filed in the case from the Western District of North Carolina, Aranguena obtained access to the online accounts of more than 10 individuals. Those individuals resided in the Hickory, North Carolina area. While in California, Aranguena reset account passwords, added email addresses to the accounts and changed call-forwarding options. Aranguena used the information obtained from these compromised accounts to then compromise numerous individuals’ email accounts, where he obtained personally identifiable information. Using this information, Aranguena opened an account or accounts in those individuals’ names. Aranguena used the fraudulently established accounts to transfer money, set up electronic bill pay, as well as to make purchases, apply for credit cards, and make hotel reservations.
Aranguena pled guilty in October 2018. Aranguena had been charged in the U.S. District Court for the Northern District of Alabama in March 2018. He was subsequently charged by the U.S. Attorney’s Office for the Western District of North Carolina in August 2018. This case was ultimately transferred to the Northern District of Alabama after the defendant indicated his intention to plead guilty to the charges.
FBI’s Birmingham and Charlotte Field Offices investigated the case, which Assistant U.S. Attorney Jonathan Keim prosecuted. The U.S. Attorney’s Offices for the Central District of California and the Western District of North Carolina assisted in the investigation.
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Father and Son Conviceted of Multimillion-Dollar Investment Fraud SchemeRead the Press Release
BIRMINGHAM – A federal jury found a father and son guilty Friday of multiple charges for their roles in investment fraud and bank fraud schemes in which they stole over $10 million from individual investors—including multiple former professional athletes—and Alamerica Bank of Birmingham, Alabama.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jay E. Town of the Northern District of Alabama and Special Agent in Charge Johnnie Sharp Jr. of the FBI Birmingham Field Office made the announcement.
Donald Watkins Sr., 70, of Atlanta, Georgia, was convicted on seven counts of wire fraud, two counts of bank fraud and one count of conspiracy. Donald Watkins Jr., 46, of Birmingham was convicted on one count of wire fraud and one count of conspiracy. Sentencing is set for July 16 before U.S. District Court Judge Karon O. Bowdre of the Northern District of Alabama, who presided over the trial.
“The jury’s verdict today sends a clear message: Donald Watkins Sr. and Donald Watkins Jr. are frauds, plain and simple,” said Assistant Attorney General Benczkowski. “They induced their victims to part with more than $10 million of supposed ‘investment capital’ and used it to support their lavish lifestyle. I want to thank the prosecutors and law enforcement agents for their hard work investigating and prosecuting this case.”
“This was a case about deception and greed at the expense of too many,” said U.S. Attorney Town. “The findings of guilt for these two individuals should forewarn anyone who would seek to defraud investors so brazenly. We appreciate the labor of the jurors whose role as citizens in this process is so critical to our system of justice. We are also grateful to the Alabama Securities Commission and the Department of Justice’s Fraud Section for allowing their personnel to engage in this prosecution.”
“Both of the men found guilty today are financial predators who truly represent pure greed,” said FBI Special Agent in Charge Sharp. “We are pleased that the defendants in this case are being held accountable for their crimes and we will continue to work with our law enforcement partners to investigate and prosecute those who commit these types of financial crimes.”
According to evidence presented at trial, between approximately 2007 and 2013, Donald Watkins Sr. sold “economic participations” and promissory notes connected with Masada Resource Group, a company that he ran as manager and CEO. Investors paid millions of dollars after Donald Watkins Sr. and Donald Watkins Jr. falsely represented that the money would be used to grow Masada, which Donald Watkins Sr. described as a “pre-revenue” company that supposedly had technology that could convert garbage into ethanol. Instead of investing the money into Masada, however, Donald Watkins Sr. and Donald Watkins Jr. diverted funds to pay personal bills and the debts of their other business ventures. The evidence showed that victim money was used to pay for Donald Watkins Sr.’s alimony, hundreds of thousands of dollars in back taxes, personal loan payments, a private jet and clothing purchased by Donald Watkins Jr. and his wife. Emails introduced at trial also showed that Donald Watkins Jr. and Donald Watkins Sr. planned to obtain millions of dollars for these purposes from one victim on multiple occasions, when they knew that their victims trusted them to put their money to use in growing Masada. The defendants’ scheme eventually grew to include another business venture, Nabirm Global, a company that Donald Watkins Sr. claimed held mineral rights in Namibia.
Donald Watkins Sr. also defrauded Alamerica Bank, an entity in which Donald Watkins Sr. was the largest shareholder, the evidence showed. In order to pay hundreds of thousands in litigation expenses associated with another one of Donald Watkins Sr.’s business ventures, Donald Watkins Sr. executed a plan to use a straw borrower to take out money from Alamerica Bank and give it to them. This straw borrower—Donald Watkins Sr.’s long-time mentor and a prominent figure in the Birmingham community—took over $900,000 in loans from Alamerica Bank and then immediately permitted Donald Watkins Sr. and Donald Watkins Jr. to use those funds for their personal benefit.
The investigation was conducted by the FBI’s Birmingham Field Office. Trial Attorney Kyle C. Hankey of the Criminal Division’s Fraud Section and First Assistant U.S. Attorney Lloyd C. Peeples III, Special Assistant U.S. Attorney Beau Brown (on detail from the Alabama Securities Commission) and Special Assistant U.S. Attorney Xavier O. Carter Sr. of the Northern District of Alabama prosecuted the case.
Husband and Wife Plead Guilty in Connection with Pain Clinic Pill Mill SchemeRead the Press Release
BIRMINGHAM – A Springville couple involved in a St. Clair County pill mill scheme entered dual guilty pleas today in federal court, announced U.S. Attorney Jay E. Town, Drug Enforcement Administration-Birmingham Acting Assistant Special Agent in Charge Andy Langan and Internal Revenue Service-Criminal Investigation Special Agent in Charge Thomas J. Holloman.
CINDY LOUISE HYCHE DUNN, 53, pleaded guilty to one count of conspiracy to distribute controlled substances outside the usual course of professional practice and not for a legitimate medical purpose and to one count of conspiracy to commit money laundering for purposes of promoting the pill mill scheme. Her husband, THOMAS MASON DUNN, 56, pleaded guilty to the same money laundering conspiracy. The couple entered their guilty pleas before U.S. District Judge R. David Proctor. A sentencing date has not been set.
From January 2012 through December 2015, Cindy Dunn ran a pain management clinic in Moody, Alabama operating under the name Cindy Dunn & Dr. Buckingham, M.D., Weight Loss Clinic and Pain Management (CDPM). CDPM was not a legitimate pain clinic. It was a pill mill churning out thousands of prescriptions for opioid painkillers. Thomas Dunn performed financial transactions on behalf of CDPM to further the pill mill scheme. He also received prescriptions for opioid painkillers from CDPM.
“This couple operated a pain management clinic with reckless disregard for patient safety,” U.S. Attorney Town said. “To those who continue to poison our communities by this illegal practice and enable the growth of the opioid crisis in our state, you will be caught, you will be prosecuted, and you will have a bed in federal prison.”
“This investigation demonstrates the fact that if you are a doctor in the state of Alabama and you are illegally prescribing controlled substances we will find you and you will pay a heavy price,” Acting Assistant Special Agent in Charge Langan said. “This is another example of the great teamwork between federal, state, and local law enforcement partners to positively impact the lives of the good people living in our communities.”
“Pill Mills continue to plague our communities as the illegal distribution of prescription drugs remains a profitable criminal enterprise,” Special Agent in Charge Holloman said. “IRS-CI pledges to follow the money to the profiteers and work with our partners to shut down these illegal operations. Today’s guilty pleas are a step forward in law enforcement’s efforts to address the prescription drug problem in our community”.
As part of their plea agreements, the couple will forfeit their Springville home to the United States. The agreement with Cindy Dunn stipulates a 10-year prison sentence. The agreement with Thomas Dunn stipulates a 30-month prison sentence. Judge Proctor accepted the couples’ guilty pleas today, but reserved decision on whether to accept the stipulated prison sentences until the couples’ sentencing hearings. The plea agreements entered by Cindy Dunn and Thomas Dunn with the United States are binding, meaning any party may withdraw if the court does not accept the stipulated prison sentences.
According to her plea agreement, as the owner and president of CDPM, Cindy Dunn ran its day-to-day operations, and hired and directed physicians and staff. Two doctors issued the majority of CDPM’s controlled substance prescriptions, neither were pain management specialists. John Ladd Buckingham was CDPM’s primary physician while Steven Bruce Hefter also issued prescriptions for CDPM at various times. CDPM attracted patients from all over Alabama and outside the state. Patients came from Huntsville, Muscle Shoals, Florence, and Mobile, Alabama. Patients also flocked to CDPM from Florida, Georgia, and Tennessee. CDPM received anywhere from forty to eighty patients in a single day.
CDPM typically did not treat patients with anything other than high doses of opioid painkillers, according to Cindy Dunn’s plea agreement. Prescribed opioids included fentanyl, hydrocodone, methadone, morphine, oxycodone, and oxymorphone. CDPM rarely, if ever, ordered diagnostic tests, such as x-rays or MRIs, to identify and potentially treat the source(s) of pain. Patients often received opioid prescriptions or dosage increases upon request. CDPM also issued prescriptions for a combination of drugs known as “the holy trinity,” which consists of an opioid painkiller, a muscle relaxer, and a benzodiazepine. The plea agreement states that this “cocktail” has a high potential for abuse and carries a significant risk of overdose.
According to her plea agreement, Cindy Dunn had no formal medical education, qualifications, or licensing, yet she directed, oversaw, and guided prescriptions for opioids and other controlled substances at CDPM. For example, Cindy Dunn allowed patients to continue receiving opioid prescriptions after failing multiple drug tests. She also permitted patients who admitted buying pills on the street and/or who had a history of drug abuse to receive opioid prescriptions. It further states that Cindy Dunn devised a system for pre-signing prescriptions in order to maximize revenue. CDPM staff wrote prescriptions, which the doctors signed far in advance of patient visits. The pre-signed prescriptions were then handed to patients in exchange for cash without the doctor seeing the patient. Cindy Dunn, Thomas Dunn, and others used the money generated through CDPM’s pill mill scheme to continue CDPM’s operations, according to both plea agreements.
“The Dunns had no business running a pain management clinic,” said Assistant United States Attorney Mohammad Khatib. “They harnessed the prescribing power of their physician co-conspirators for the sole purpose of making fast money. Their greed spread the opioid epidemic in Alabama and inflicted real damage on the legitimate medical community. For that, they must pay a very dear price.”
Doctor Hefter pleaded guilty for his involvement with CDPM in December 2017.
DEA and IRS-Criminal Investigation investigated the case, which Assistant U.S. Attorneys Mohammad Khatib and Robin Beardsley Mark are prosecuting.
Father and Son Convicted of Multimillion-Dollar Investment Fraud SchemeRead the Press Release
A federal jury in Birmingham, Alabama found a father and son guilty Friday of multiple charges for their roles in investment fraud and bank fraud schemes in which they stole over $10 million from individual investors—including multiple former professional athletes—and Alamerica Bank of Birmingham, Alabama.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jay E. Town of the Northern District of Alabama and Special Agent in Charge Johnnie Sharp Jr. of the FBI Birmingham Field Office made the announcement.
Donald Watkins Sr., 70, of Atlanta, Georgia, was convicted on seven counts of wire fraud, two counts of bank fraud and one count of conspiracy. Donald Watkins Jr., 46, of Birmingham was convicted on one count of wire fraud and one count of conspiracy. Sentencing is set for July 16 before U.S. District Court Judge Karon O. Bowdre of the Northern District of Alabama, who presided over the trial.
“The jury’s verdict today sends a clear message: Donald Watkins Sr. and Donald Watkins Jr. are frauds, plain and simple,” said Assistant Attorney General Benczkowski. “They induced their victims to part with more than $10 million of supposed ‘investment capital’ and used it to support their lavish lifestyle. I want to thank the prosecutors and law enforcement agents for their hard work investigating and prosecuting this case.”
“This was a case about deception and greed at the expense of too many,” said U.S. Attorney Town. “The findings of guilt for these two individuals should forewarn anyone who would seek to defraud investors so brazenly. We appreciate the labor of the jurors whose role as citizens in this process is so critical to our system of justice. We are also grateful to the Alabama Securities Commission and the Department of Justice’s Fraud Section for allowing their personnel to engage in this prosecution.”
“Both of the men found guilty today are financial predators who truly represent pure greed,” said FBI Special Agent in Charge Sharp. “We are pleased that the defendants in this case are being held accountable for their crimes and we will continue to work with our law enforcement partners to investigate and prosecute those who commit these types of financial crimes.”
According to evidence presented at trial, between approximately 2007 and 2013, Donald Watkins Sr. sold “economic participations” and promissory notes connected with Masada Resource Group, a company that he ran as manager and CEO. Investors paid millions of dollars after Donald Watkins Sr. and Donald Watkins Jr. falsely represented that the money would be used to grow Masada, which Donald Watkins Sr. described as a “pre-revenue” company that supposedly had technology that could convert garbage into ethanol. Instead of investing the money into Masada, however, Donald Watkins Sr. and Donald Watkins Jr. diverted funds to pay personal bills and the debts of their other business ventures. The evidence showed that victim money was used to pay for Donald Watkins Sr.’s alimony, hundreds of thousands of dollars in back taxes, personal loan payments, a private jet and clothing purchased by Donald Watkins Jr. and his wife. Emails introduced at trial also showed that Donald Watkins Jr. and Donald Watkins Sr. planned to obtain millions of dollars for these purposes from one victim on multiple occasions, when they knew that their victims trusted them to put their money to use in growing Masada. The defendants’ scheme eventually grew to include another business venture, Nabirm Global, a company that Donald Watkins Sr. claimed held mineral rights in Namibia.
Donald Watkins Sr. also defrauded Alamerica Bank, an entity in which Donald Watkins Sr. was the largest shareholder, the evidence showed. In order to pay hundreds of thousands in litigation expenses associated with another one of Donald Watkins Sr.’s business ventures, the defendants, Donald Watkins Sr. executed a plan to use a straw borrower to take out money from Alamerica Bank and give it to them. This straw borrower—Donald Watkins Sr.’s long-time mentor and a prominent figure in the Birmingham community—took over $900,000 in loans from Alamerica Bank and then immediately permitted Donald Watkins Sr. and Donald Watkins Jr. to use those funds for their personal benefit.
The investigation was conducted by the FBI’s Birmingham Field Office. Trial Attorney Kyle C. Hankey of the Criminal Division’s Fraud Section and First Assistant U.S. Attorney Lloyd C. Peeples III, Special Assistant U.S. Attorney Beau Brown (on detail from the Alabama Securities Commission) and Special Assistant U.S. Attorney Xavier O. Carter Sr. of the Northern District of Alabama prosecuted the case.
Federal Grand Jury Indicts Gadsden Man for Multiple CarjackingsRead the Press Release
BIRMINGHAM – A federal grand jury indicted a Gadsden man for two November 25, 2018 carjackings announced U.S. Attorney Jay E. Town, FBI Special Agent in Charge Johnnie Sharp, Jr. and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
Luis Sebastian Tello, 23, is charged in a five-count indictment filed in U.S. District Court with stealing a vehicle at gunpoint from a pizza delivery driver in Gadsden, Alabama and then carjacking a second vehicle from two out-of-state travelers at a gas station in Trussville, Alabama. Springville Police Department then stopped Tello for speeding on Interstate 59. Tello fled into the woods and officers from multiple agencies engaged in a manhunt that resulted in his capture later that evening. Tello is charged with two counts of carjacking, two counts of possession of a firearm during a crime of violence, and one count of being a felon in possession of a firearm.
“We commend the FBI, ATF, St. Clair Correctional Facility’s tracking dog team, St. Clair County Sheriff’s Office, Alabama Law Enforcement Agency, and the police departments of Gadsden, Trussville, Springville, and Odenville for their investigation and quick apprehension of this individual,” Town said. “Violent offenders who prey on unsuspecting victims will be taken of the street.”
The maximum penalty for carjacking is 15 years in prison. The penalty for possession of a firearm during a crime of violence is not less than 7 years in prison. The maximum penalty for being a felon in possession of a firearm is 10 years in prison. Each of the charges carries a maximum fine of $250,000.
FBI investigated the case along with ATF, St. Clair County Sheriff’s Office, Alabama Law Enforcement Agency, Gadsden Police Department, Trussville Police Department, Springville Police Department and Odenville Police Department. Assistant U.S. Attorney Alan Baty is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Federal Grand Jury Indicts Birmingham Man for CarjackingRead the Press Release
BIRMINGHAM – A federal grand jury indicted a Birmingham man for a November 5, 2018 carjacking announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp, Jr.
Corderrel Dwayne Poole, 32, is charged in a one-count indictment filed in U.S. District Court with taking the victim’s SUV by violence and intimidation at a business on Green Springs Highway in Homewood, Alabama. Poole was apprehended the same evening by the Lincoln Police Department at the scene of a one-vehicle crash on Interstate 20 in Talladega County.
“The U.S. Attorney’s Office encourages citizens to be vigilant in the parking areas of businesses they visit and commends the individuals who came forward to assist the victim after she was forcibly removed from her vehicle,” Town said. “Thanks to the work of the Homewood Police Department, Lincoln Police Department, and Alabama Law Enforcement Agency for their efforts in bringing this investigation to a quick conclusion.”
The maximum penalty for carjacking is 15 years in prison and a $250,000 fine.
The FBI investigated the case along with the Homewood Police Department, Lincoln Police Department and Alabama Law Enforcement Agency. Assistant U.S. Attorney Alan Baty is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Alabama Man Indicted for Allegedly Producing Child PornographyRead the Press Release
A federal grand jury in Birmingham, Alabama returned an indictment on Feb. 27 charging an Alabama man, who was arrested earlier today, with production, distribution and receipt of child pornography, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Jay E. Town of the Northern District of Alabama.
Benjamin Eugene Walter, 38, of Decatur, Alabama, was charged by indictment with five counts of production of child pornography, one count of distribution of child pornography and one count of receipt of child pornography. Walter was arrested on March 7 pursuant to an arrest warrant issued in conjunction with the indictment.
The indictment alleges that, between Nov. 2013 and July 2014, Walter used and attempted to use five minors to engage in sexually explicit conduct for the purpose of transmitting a live visual depiction of such conduct. The indictment further alleges that Walter distributed child pornography in December 2015 and received child pornography between November 2013 and December 2015.
The charges in the indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI is investigating this case. Trial Attorney William M. Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney R. Leann White of the Northern District of Alabama are prosecuting the case.
This investigation is a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Alabama Man Indicted for Allegedly Producing Child PornographyRead the Press Release
BIRMINGHAM – A federal grand jury returned an indictment on Feb. 27 charging an Alabama man, who was arrested earlier today, with production, distribution and receipt of child pornography, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp, Jr.
Benjamin Eugene Walter, 38, of Decatur, Alabama, was charged by indictment with five counts of production of child pornography, one count of distribution of child pornography and one count of receipt of child pornography. Walter was arrested on March 7 pursuant to an arrest warrant issued in conjunction with the indictment.
The indictment alleges that, between Nov. 2013 and July 2014, Walter used and attempted to use five minors to engage in sexually explicit conduct for the purpose of transmitting a live visual depiction of such conduct. The indictment further alleges that Walter distributed child pornography in December 2015 and received child pornography between November 2013 and December 2015.
This investigation is a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The FBI is investigating this case. Trial Attorney William M. Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney R. Leann White are prosecuting the case.
The charges in the indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Federal Grand Jury Indicts Opelika Woman for Wire FraudRead the Press Release
BIRMINGHAM – A federal grand jury indicted a Opelika woman on multiple counts of wire fraud announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp.
Andrea Payne, 63, is charged in a ten-count indictment filed in U.S. District Court with stealing money from the Talladega County Association of Volunteer Fire Departments. Payne previously served as the Treasurer of the Talladega County Association of Volunteer Fire Departments. Between 2012 and 2018, the Association received quarterly checks from the Talladega County Commission as distributions from the two-cent sales tax revenue. The purpose of the distributions was to provide financial assistance to fifteen volunteer fire departments throughout Talladega County. As the Treasurer, Payne was responsible for receiving the funds from the Talladega County Commission and distributing the funds equally among the fifteen volunteer fire departments within Talladega County. Payne was not authorized to receive any compensation for her role as the elected Treasurer and was not authorized to use the funds for personal use. Payne embezzled funds from the Association by using the funds to pay for her personal credit card. The defendant’s scheme resulted in Payne stealing over $640,000 from the Association.
“The defendant is facing federal charges due to the outstanding work of the Talladega County Sheriff’s Office and the FBI,” Assistant U.S. Attorney Robin Beardsley Mark said. “The defendant’s actions in stealing money from local volunteer fire departments threatens the safety and security of residents of Talladega County. The money should have been used to aid in training volunteer firemen, to provide equipment and supplies, and to assist with disaster or emergency services.”
The maximum penalty for each count of wire fraud is 20 years in prison and a $250,000 fine.
The FBI investigated the case, along with the Talladega County Sheriff’s Office, which Assistant U.S. Attorney Robin Beardsley Mark is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Northern District of Alabama U.S. Attorney’s Office Collects $9,044,060.80 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2018Read the Press Release
Birmingham, AL-- U.S. Attorney Jay E. Town announced today that the Northern District of Alabama collected $9,044,060.80 in criminal and civil actions in Fiscal Year 2018. Of this amount, $7,221,160.63 was collected in criminal actions and $1,822,900.17 was collected in civil actions.
Additionally, the Northern District of Alabama worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $1,651,100.00 in cases pursued jointly by these offices.
As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2018. The $14,839,821,650 in collections in FY 2018 represents is nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for the 94 U.S. Attorneys’ offices.
“The men and women of the U.S. Attorneys’ offices across the country work diligently, day in and day out, to see that the citizens of our nation receive justice. The money that we are able to recover for victims and this country as a whole is a direct result of their hard work,” Director James A. Crowell, IV, Executive Office for U.S. Attorneys.
“The prosecutors and support staff in my office strive each day to put criminals behind bars and protect the public fisc, and the collection of civil and criminal debts is an essential part of that,” Town said. “The forfeitures collected shows our continued commitment to pursue the recovery of those ill-gotten gains so that victims of crime and the federal treasury can be given restitution. We will continue to do so aggressively.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.
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Federal Jury Convicts a Tuscaloosa County Man of Possessing MethamphetamineRead the Press Release
A federal jury on Tuesday evening, convicted a Tuscaloosa County man of possessing methamphetamine, announced U.S. Attorney Jay E. Town and Bureau of Alcohol, Tobacco and Firearms and Explosives Special Agent in Charge Marcus Watson.
Following a two- day trial before U.S. District Court Judge L. Scott Coogler, a jury convicted Carlos Gabriel DeAza, 48, of possessing more than 50 grams of methamphetamine with the intention to distribute, possession of a gun in furtherance of a drug-trafficking crime, and possession of a firearm by a convicted felon. DeAza will be sentenced in June.
According to the evidence at the trial, agents of the West Alabama Narcotics Task Force executed a search warrant at DeAza’s home on May 31, 2018, where they found nearly 75 grams of pure methamphetamine, scales and bags for distribution, and four handguns. The methamphetamine was hidden inside of a shoe in the laundry room of the Holt-area home.
“Felons who have disregard for the law will be prime targets by federal law enforcement and will be taken out of our communities,” Town said. “We are committed to working with our federal, state and local law enforcement partners to find these criminals and send them to federal prison where there is no sanctuary for parole.”
“ATF’s Crime Gun Intelligence focuses on reducing violent crime and disrupting the shooting cycle that negatively impact our neighborhoods,” Watson said. “The priority of protecting the public is evident with the partnerships with the West Alabama Narcotics Task Force and the U. S. Attorney’s Office.”
The penalty for possessing with intent to distribute 50 grams or more of methamphetamine is a minimum of 10 years in prison.
The minimum penalty for possessing a gun in furtherance of a drug crime is 5 years in prison.
The maximum penalty for being a convicted felon in possession of a firearm is 10 years in prison. Due to DeAza’s extensive criminal history, this sentence could be increased.
ATF investigated the case, along with the West Alabama Narcotics Task Force. Assistant United States Attorneys Melissa K. Atwood and Kristy Peoples prosecuted the case.
Three U.S. Attorneys in Alabama Recognize the Service and Sacrifice of Law EnforcementRead the Press Release
Tuscaloosa, Alabama- U.S. Attorneys Jay E. Town, Louis V. Franklin, Sr., and Richard W. Moore, take time to stop, remember, and recognize all federal, state and local law enforcement officers and pay tribute to their service and sacrifice. Law enforcement has the difficult and dangerous task of making our communities safer, while placing their own lives and well-being at risk.
Sadly, each year many officers make the ultimate sacrifice and give their lives in performance of their duties. In the State of Alabama, three officers have been shot and killed over the past year, with two of those deaths taking place just last month. Mobile Police Officer Sean Paul Tuder, was shot and killed on January 20, 2019 while attempting to serve an arrest warrant. Just a week before, on January 13, 2019, Sergeant Wytasha Carter of the Birmingham Police, was also shot and killed attempting to make an arrest. Last year, Mobile Police Department Officer Justin Billa was killed while assisting in the apprehension of a murderer.
We know that law enforcement is the foundation of a safe community. They work diligently each day to maintain order while risking everything for the greater good. Far too many are killed each year for simply doing their jobs. We must also never forget that it is not only the officers that deserve our respect and support, but their families as well. Officers always have our backs and we should always have theirs, including their loved ones.
“Those willing to commit malicious acts of violence against members of law enforcement would not give a second thought to leveling that same violence against the rest of us,” U.S. Attorney Town said. “An attack on the men and women who wear the badge is an attack on the very foundations of our community and the sanctity of our cities. We should never forget that the line of duty is endowed by sacrifice, selflessness, and courage and we should all take care to honor those whose end of watch came much too soon.”
“A law enforcement officer begins each day uncertain as to whether he or she will be asked to make the ultimate sacrifice to protect his or her community,” stated U.S. Attorney Franklin. “Too often, these daily acts of bravery go unnoticed. It should not take the tragic deaths of our officers for all of us to recognize the selfless sacrifices of law enforcement that take place each and every day.”
“An assault on a police officer is an assault on the rule of law and our democratic principles,” said U.S. Attorney Moore. “The citizens of Alabama have an interest in helping us to get the word out that you do not shoot a police officer. That needs to start at home and in our schools. This has become a national problem that all of us need to address together. The three U.S. Attorneys are committed to doing our part to ‘back the blue.’”
Statement from United States Attorney Jay E. Town on this Morning’s Shooting of Two Birmingham Police OfficersRead the Press Release
“This tragedy is a heartbreaking reminder of the dangers all law enforcement face while we sleep. While they keep us safe. While they do the job. Our thoughts and prayers are with the families of the officers, the officer still fighting for life, and the fallen officer whose end of watch came much too soon.”
North Alabama Man Sentenced to More than 10 Years for Online Drug-Trafficking ConspiracyRead the Press Release
BIRMINGHAM - A Madison man who used the internet’s dark markets in an online drug trafficking conspiracy was sentenced on Wednesday, to more than a decade in federal prison, announced U.S. Attorney Jay E. Town, U.S. Postal Inspection Service Inspector in Charge Adrian Gonzalez and DEA Associate Special Agent in Charge Brad Byerley.
U.S. District Judge Madeline Hughes Haikala sentenced JOSEPH WILLIAM DAVIS, 26, to 126 months in prison for distributing, possessing with intent to distribute and conspiring to distribute or to possess with intent to distribute more than 50 grams of methamphetamine, more than 40 grams of fentanyl, 2.81 grams of cocaine, and more than 80,000 units of Alprazolam.
“Federal law enforcement will continue to shine a spotlight on drug dealers operating in the darkest corners of the internet,” Town said. “Federal prison beds await them all.”
“I commend the hard work and countless hours put forth by all of the law enforcement agencies involved,” Gonzalez said. “Together we will continue to be vigilant in identifying and working to prosecute those who illegally utilize the mail while keeping the safety of the American public and our Postal Service employees at the forefront.”
“The successful prosecution of Joseph Davis is a direct result of outstanding partnerships with federal, state, and local law enforcement,” Byerley said. “It should put others who engage in this type of activity on notice: if you sell drugs, whether on the street corner or online on the dark web, you will face federal charges and a lengthy prison sentence. This sentence in federal prison sends a message of our unending resolve to pursue drug traffickers who wreak havoc in our communities.”
Davis, also known on the internet’s dark markets as OlympusXans, or OX, pled guilty in August to conspiracy to traffic drugs, including fentanyl and methamphetamine, and to possessing firearms in furtherance of drug trafficking. Davis used encrypted internet chats to arrange smuggled shipments of illegal drugs, which he arranged to be delivered via U.S. Mail to addresses in Madison County.
U.S. Postal Inspectors, the Drug Enforcement Administration, Huntsville-Madison County STAC, and the Cullman County Sheriff's Department investigated the case, which Assistant U.S. Attorney Jonathan S. Keim prosecuted.
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Two Birmingham Men Plead Guilty to Using a Firearm During a Carjacking in Homewood, ALRead the Press Release
BIRMINGHAM –Two Birmingham men pled guilty in federal court to carjacking and the use of a firearm during a violent crime, announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp, Jr.
KEVIN ELICE PAYNE, 20, entered his plea before U.S. District Court Judge Karon O. Bowdre today to one count of carjacking and one count of using a firearm in relation to a violent crime, in Jefferson County, Alabama, on October 5 2018. PAYNE’S co-defendant, KENMARIOUS MARKEON FAULKNER, 18, plead guilty to the same charges yesterday. The sentencing for PAYNE and FAULKNER is scheduled for April 17th.
“These violent defendants have been brought to justice and they will have plenty of time in a federal prison to pay for their crimes”, Town said. “These crimes are far too prevalent in the Northern District and thus our local, state, and federal law enforcement agencies will remain in their phalanx to not only police violent crime, but defeat it.”
“Thanks to the work of the Homewood Police Department these dangerous and violent criminals were quickly taken into custody and have now admitted to their crimes,” Sharp said. “The FBI will continue to work with our partners to address this type of violent crime.”
On October 5, 2018, the victim was shopping at the Walmart Supercenter on Lakeshore Parkway in Homewood, Alabama. As the victim got into her vehicle, PAYNE and FAULKNER prevented her from closing the door. Wearing a ski mask and brandishing a pistol, PAYNE explained, “I’ll blow your head off if you don’t give me your money.” PAYNE and FAULKNER then grabbed the victim and forcibly removed her from the vehicle. The assailants then stole the victim’s car and sped away. Shortly thereafter, Homewood Police Department alerted patrol officers to be on the lookout for the victim’s vehicle. Moments later, the car was spotted by an officer traveling on I-65 North. Following a lengthy pursuit, officers rammed the fleeing vehicle, causing it to crash. PAYNE and FAULKNER were immediately taken into custody.
The maximum penalty for carjacking is 15 years in prison. Brandishing a firearm during a crime of violence carries a mandatory minimum sentence of five years in prison, to be served consecutively to any other sentence imposed for the crime.
The Federal Bureau of Investigation investigated the case along with Homewood Police Department, which Assistant U.S. Attorney Brad Felton prosecuted.
Morgan County Sheriff Agrees to Plead Guilty to Failure to File a Tax ReturnRead the Press Release
BIRMINGHAM – Morgan County Sheriff ANA WOODARD FRANKLIN has been charged in a one-count information charging failure to file a tax return announced U.S. Attorney Jay E. Town and IRS-Criminal Investigation Special Agent in Charge Thomas J. Holloman.
A one-count information filed in United States District Court today, charges ANA WOODARD FRANKLIN, 54, of Hartsell, with willfully failing to file a personal income tax return for tax year 2015.
“We expect all of our citizens, to include and especially our public officials to promptly and accurately file their tax returns,” Town said. “The Department of Justice will continue to federally charge those who fail to do so. We appreciate the investigative work of IRS-CID and FBI Birmingham.”
"As we approach the tax filing season, this case should be an example of what happens when you fail to file and pay your taxes,” Holloman said. “Doing so may subject you to significant penalties, fines, and the possibility of jail time.”
The penalty for willfully failing to file a tax return is a maximum of 1 year in prison and a maximum fine of $100,000.
IRS-CID investigated the case along with FBI Birmingham. Assistant U.S. Attorney Robert O. Posey is prosecuting.
Deputy Attorney General Rod Rosenstein Visits Huntsville, ALRead the Press Release
Huntsville- Today Deputy Attorney General Rod Rosenstein visited Huntsville, AL to tour facilities at Redstone Arsenal, to include FBI’s Terrorist Explosive Device Analytical Center (TEDAC), ATF’s National Center for Explosives, Training and Research (NCETR) and NASA, announced U.S. Attorney Jay E. Town.
“It was an honor to receive Deputy Attorney General Rod Rosenstein today and tour the many impressive facilities aboard the Redstone Arsenal campus”, Town said. “It comes as no surprise that the DAG was impressed by the growth and capabilities here. We began the day touring NASA, a remarkable ambassador to the 40,000+ employees that serve aboard the Redstone Arsenal each day. Touring NASA is always impressive. The FBI’s Terrorist Explosive Device Analytical Center and ATF’s National Center for Explosives Training and Research and National Integrated Ballistic Information Network (NIBIN) facilities truly reminds us of the impressive advancement that law enforcement has made in order to stay ahead of criminal threats to the public. We were fortunate to be joined by ATF Director Tom Brandon as well. Our federal law enforcement capacities are tremendous but are only successful due to the hard work, dedication, and bravery of the men and women of all of our federal law enforcement agencies.”
Deputy Attorney General Rod Rosenstein with U.S. Attorney Jay E. Town at NASA Marshall Flight Center
DAG Rosenstein and USA Town with FBI TDAC Officials DAG Rosenstein (centered) and USA Town with FBI and ATF officials who toured the facilities on Tuesday.Tax Preparer Sentenced to Two Years in Prison for Filing Fraudulent ReturnsRead the Press Release
BIRMINGHAM - A federal judge on Tuesday sentenced tax preparer PAMELA WHITT a/k/a PAMELA MOTLEY, of Bessemer, Alabama, to two years in prison for filing false tax returns, announced U.S. Attorney Jay E. Town and Internal Revenue Service Criminal Investigation Special Agent in Charge Thomas J. Holloman.
“The U.S. Attorney’s Office and IRS-Criminal Investigation will continue to aggressively pursue those who threaten the integrity of the tax system,” Town said. “Dishonest and abusive tax preparers like Whitt, who make their living preparing and filing false tax returns, will be charged with federal crimes and will go to federal prison.”
“As we enter the tax return filing season, it is important that every taxpayer reviews their tax return and verifies that all of the information is correct on that return. This case is a prime example of a return preparer who was not credible and in addition to filing her own false tax returns, she filed false tax returns for her clients,” said Thomas J. Holloman, Special Agent in Charge, IRS-Criminal Investigation.
Whitt pleaded guilty in July to her role in filing false tax returns. According to her plea agreement, Whitt made false representations on her 2011 and 2012 individual tax returns by willfully underreporting receipts from her business and further falsely listed her filing status as single. The receipts related to over 1,000 federal income tax returns prepared. Whitt also filed false tax returns for her clients, to inflate the amount of tax refund they would receive. Whitt agreed to pay restitution of $146,177.00.
IRS-CI investigated the case, which Assistant U.S. Attorney Robert O. Posey prosecuted.
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Pell City Woman Indicted for Wire and Bank FraudRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Pell City woman on multiple counts of wire fraud and bank fraud, announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp.
Julia Hollis Meyers, 53, is charged in a seventeen-count indictment filed in U.S. District Court with stealing money from her former employer. Meyers was previously employed by Hibbett Sports, Inc., as a Senior Lease Administrator. While employed by Hibbett Sports, Meyers obtained checks for vendor lease payments from Hibbett Sports and deposited the checks into her personal bank account. Additionally, Meyers engaged in a scheme to direct ACH payments from Hibbett Sports to her personal bank account. The defendant’s scheme resulted in Meyers stealing over $200,000 from her employer.
“This is yet another example of an employee stealing from her employer,” Town said. “This outright theft and misuse of funds will not be tolerated and those who continue to operate these type schemes, will be prosecuted in federal court.”
The maximum penalty for each count of wire fraud is 20 years in prison and a $250,000 fine. The maximum penalty for each count of bank fraud is 30 years and a $1,000,000 fine.
The FBI investigated the case, which Assistant U.S. Attorney Robin Beardsley Mark is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Fultondale Doctor Charged with Prescribing Controlled Substances and Healthcare Fraud and Demopolis Pharmacist and Tuscaloosa Sales Representative Indicted for Healthcare FraudRead the Press Release
BIRMINGHAM – A federal grand jury today, in a 103-count superseding indictment, charged a Fultondale doctor with conspiracy to prescribe controlled substances and participating in a healthcare fraud conspiracy with a Demopolis pharmacist and a Tuscaloosa sales representative, announced U.S. Attorney Jay E. Town, DEA Special Agent in Charge Stephen G. Azzam, and FBI Special Agent in Charge Johnnie Sharp, Jr.
PAUL ROBERTS, M.D., 46, of Fultondale, Ala. is charged with multiple counts of conspiring and dispensing controlled substances without a legitimate medical purpose. The drugs Roberts prescribed include Adderall, a drug used to treat attention deficit hyperactivity disorders, Suboxone, a drug used to treat opioid addiction, and oxycodone, an opioid. The indictment charges Roberts with prescribing oxycodone to an individual described as C.H. “in exchange for sexual favors performed by C.H. at various locations.”
Roberts is also charged with participating in a healthcare fraud conspiracy and scheme that involved delegating responsibility for seeing patients with opioid addictions to staff such as his X-ray technician and office manager, but billing Blue Cross Blue Shield of Alabama as though he personally saw the patients. The indictment also charges Roberts, along with STANLEY F. REEVES, 60, of Demopolis, Ala., a pharmacist and owner of F&F Drugs, a pharmacy, and BRETT TAFT, 45, of Tuscaloosa, Ala. with defrauding third-party administrators of health insurance plans of over $10.5 million in fraudulently billed compounded drugs. Reeves is also charged with making false statements to federal agents and with tampering with a witness, and both Reeves and Taft are charged with spending the proceeds of health care fraud.
“The U.S. Attorney’s Office and our law enforcement partners will continue to aggressively pursue doctors who demonstrate such blatant disregard for their patients’ well-being, and to prosecuting individuals who defraud the healthcare insurance plans that exist to help the citizens of this district pay for healthcare,” Town said. “Dope dealers sometimes wear a white coat.”
"DEA is fully committed to the pursuit of any individual who abandons their oath as a medical professional,” Azzam said. “We will continue to work with our law enforcement partners, the medical community and the public to identify and stop those responsible for endangering lives in our communities and bring them to justice.”
The maximum punishment for the dispensing controlled substances charges is 20 years in prison and a $1,000,000 fine. The maximum penalty for health care fraud and conspiracy charges is 10 years in prison and a $250,000 fine. The maximum penalty for the false statement charge is five years in prison and a $250,000 fine. The maximum penalty for the witness tampering charge is 20 years in prison and a $250,000 fine. The maximum penalty for the spending proceeds of healthcare fraud charge is 10 years in prison and a $250,000 fine.
DEA and FBI investigated the cases, which Assistant U.S. Attorneys Austin Shutt and Chinelo Dike-Minor are prosecuting.
An indictment contains only charges. Defendants are presumed innocent unless and until proven guilty.
Statement from United States Attorney Jay E. Town on the Shooting of Marengo County District Attorney Greg GriggersRead the Press Release
“Our thoughts and prayers are with Greg and his family. District Attorney Griggers is a dedicated public servant and an honorable man. This serves as yet another reminder of the perils and dangers that law enforcement at every level face daily.”
U.S. Attorney Jay E. Town Appointed to the Justice Department’s China InitiativeRead the Press Release
BIRMINGHAM – U.S. Attorney Jay E. Town appointed to serve on the Justice Department’s China Initiative.
The group is led by Assistant Attorney General John Demers, who heads the Department of Justice’s National Security Division. Town is one of five U.S. Attorneys—to include U.S. Attorneys from Massachusetts, California, New York and Texas— serving on the working group along with other Department of Justice leaders, senior FBI officials, and Assistant Attorney General for the Criminal Division, Brian Benczkowski.
The Initiative will pursue high priority Chinese economic espionage and trade secret cases. It reflects the Department’s strategic priority of countering Chinese national security threats and reinforces President Trump’s overall national security strategy.
“It is an honor and a privilege to join my colleagues in the FBI and Department of Justice to expose any threats to our national security posed by the theft of American innovation, American technology, and American intelligence. I look forward to the leadership of Assistant Attorney General John Demers,” Town said. “The Department of Justice remains on the front lines of these threats to our national security. U.S. companies, many of them with a footprint here in the Northern District of Alabama, spend billions developing intellectual property, trade secrets, and other proprietary information only to see it infringed upon by foreign bad actors. Whether state secrets or trade secrets, the China Initiative will offer profound resolve to those inimical threats posed to our sovereignty, by China.”
“China wants the fruits of America’s brainpower to harvest the seeds of its planned economic dominance,” said Assistant Attorney General for National Security John Demers. “Preventing this from happening will take all of us, here at the Justice Department, across the U.S. government, and within the private sector. We will confront China’s malign behaviors and encourage them to conduct themselves as they aspire to be: one of the world’s leading nations.”
Initiative Goals:
- Identify priority trade secret theft cases, ensure that investigations are adequately resourced; and work to bring them to fruition in a timely manner and according to the facts and applicable law;
- Develop an enforcement strategy concerning non-traditional collectors (e.g., researchers in labs, universities, and the defense industrial base) that are being coopted into transferring technology contrary to U.S. interests;
- Educate colleges and universities about potential threats to academic freedom and open discourse from influence efforts on campus;
- Apply the Foreign Agents Registration Act to unregistered agents seeking to advance China’s political agenda, bringing enforcement actions when appropriate;
- Equip the nation’s U.S. Attorneys with intelligence and materials they can use to raise awareness of these threats within their Districts and support their outreach efforts;
- Implement the Foreign Investment Risk Review Modernization Act (FIRMA) for DOJ (including by working with Treasury to develop regulations under the statute and prepare for increased workflow);
- Identify opportunities to better address supply chain threats, especially ones impacting the telecommunications sector, prior to the transition to 5G networks;
- Identify Foreign Corrupt Practices Act (FCPA) cases involving Chinese companies that compete with American businesses;
- Increase efforts to improve Chinese responses to requests under the Mutual Legal Assistance Agreement (MLAA) with the United States; and
- Evaluate whether additional legislative and administrative authorities are required to protect our national assets from foreign economic aggression.
Federal Jury Convicts a Marshall County Man for Distributing MethamphetamineRead the Press Release
BIRMINGHAM – A federal jury Wednesday convicted a Marshall County man for distributing and possessing with the intent to distribute methamphetamine, announced U.S. Attorney Jay E, Town and FBI Special Agent in Charge Johnnie Sharp Jr.
The jury returned a guilty verdict against Michael Pedro Andres, 31, after two days of testimony before U.S. District Court Judge Abdul Kallon. A sentencing date has been set for February 19, 2018 at 10:30 a.m. in Birmingham.
The evidence at trial showed that in August 2017, on two separate occasions, Andres unlawfully distributed 36.127 grams of methamphetamine and 49.336 grams of methamphetamine, totaling over a pound of methamphetamine. On August 16, 2017, Andres was arrested for possessing 421.10 grams of methamphetamine with the intent to distribute.
“My office is dedicated to stop the influx of dangerous drugs like methamphetamine into our communities,” Town said. “The fact that more than a pound of this illegal narcotic is off the streets is significant as are the penalties associated with this criminal activity. This defendant faces a potential life sentence for his role in putting this poison on our streets. So to other drug dealers out there, rest assured, we will pursue you and stop you.”
“Drug trafficking is a dangerous business that ruins lives every day,” Sharp said. “Thanks to the guilty verdict handed down today, north Alabama is safer with Anders off the street and unable to carelessly endanger our communities with the poison he was peddling.”
FBI, along with the DeKalb County Drug Task Force and FBI North Alabama Safe Streets Task Force investigated the case, which Assistant U.S. Attorney Laura Hodge prosecuted.
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Madison Woman Pleads Guilty to Making False StatementRead the Press Release
BIRMINGHAM – Today a Madison, Alabama woman pled guilty in federal court to making a false statement, announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp, Jr.
XI QING YUN a/k/a Carolyn Xi, 52, entered her plea before U.S. District Judge Abdul K. Kallon. Xi was employed by the Army’s Aviation and Missile Research Development and Engineering Center at Redstone Arsenal, when she failed to disclose foreign contacts on a questionnaire for a national security position. She is scheduled for sentencing before Judge Kallon on February 21, 2019 in Huntsville.
“It is critical that people with a security clearance, or people applying for a security clearance, are upfront and honest regarding questions about foreign contacts and their background,” Town said. “A failure to be honest compromises the integrity of checks put in place to protect our national security.”
“Ms. Xi’s lack of candor not only called into question her reliability, trustworthiness, and ability to protect sensitive information, it also resulted in her prosecution,” Sharp said. Let this be a lesson to those seeking a position of trust with the United States—show you can be trusted by being truthful in your responses for a security clearance.”
The maximum penalty for making a false statement is 5 years in prison and a $250,000 fine.
FBI and Army Counterintelligence investigated the case, which Assistant U.S. Attorney Davis Barlow and Trial Attorney Scott Claffee, National Security Division are prosecuting.
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Alabama Woman Indicted for Attempting to Provide Material Support and Resources to a Foreign Terrorist OrganizationRead the Press Release
BIRMINGHAM – A federal grand jury on Monday indicted a woman, who is a former resident of Alabama, with attempting to provide material support and resources to al Qaeda, a designated foreign terrorist organization, and aiding and abetting others, in violation of Title 18, United States Code, Sections 2339B and 2, announced Assistant Attorney General John Demers of the National Security Division, United States Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp Jr.
According to court filings, Alaa Mohd Abusaad instructed an FBI undercover employee (UCE) about how to send money to the mujahedeen—fighters engaged in jihad. Abusaad told the UCE that money “is always needed. You can’t have a war without weapons. You can’t prepare a soldier without equipment.” Abusaad also advised the UCE on how to send money without getting caught, such as by using fake names and addresses. Subsequently, Abusaad introduced the UCE to a financial facilitator who could route the UCE’s money to “brothers that work with aq (al Qaeda).”
“Federal agents and prosecutors are working tirelessly and using every available lawful tool to disrupt the evil schemes of those who would support foreign terrorist organizations to do harm to our troops, our allies, or our homeland”, Town said. “The FBI did an excellent job investigating this matter, effectively engaging with other districts, and worked tirelessly to investigate this terrorist behavior. I would like to extend my personal gratitude to our local FBI field office, FBI-Cleveland, FBI’s Counterterrorism Division, Northern District of Ohio U.S. Attorney Justin Herdman, and the entirety of the Department of Justice’s National Security Division for their diligent and enormous efforts in developing this case. Our collective vigilance as law enforcement and in our community must resolve to continue to say something if you see something.”
The maximum penalty is 20 years in prison, up to a life term of supervised release and a $250,000 fine.
FBI, including FBI offices in Birmingham and in Cleveland and Toledo, Ohio, investigated the case, which the Assistant United States Attorneys Henry Cornelius and Manu Balachandran, and Trial Attorney Jennifer Levy of the National Security Division’s Counterterrorism Section are prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
The complaint was announced in a press release on October 23, 2018.
2-Month Operation Nets 36 Defendants, Takes 40 Guns Off N. Alabama StreetsRead the Press Release
BIRMINGHAM – A 2-month operation focused on reducing violent crime in Tuscaloosa resulted in federal charges against 36 defendants, with 40 guns seized, announced U.S. Attorney Jay E. Town, Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson, Tuscaloosa Police Chief Steven Anderson, Tuscaloosa County Sheriff Ron Abernathy and Tuscaloosa District Attorney Hays Webb.
The U.S. Attorney’s Office and ATF joined with local law enforcement in Tuscaloosa County, Alabama Attorney General’s Office, Alabama Law Enforcement Agency, University of Alabama Police Department, Northport Police Department, 17th Judicial Drug Task Force, and the West Alabama Narcotics Task Force in an intense effort in September and October to charge violent offenders and take guns off the streets.
“These indictments represent the hard work of our federal, state and local law enforcement partners and our continued efforts to work together to remove these criminals from our streets with severe punishment, and return our communities back to their rightful owners…the law abiding citizens,” Town said. “We have bed space in federal prison for these folks and we will fill it.”
“These arrests represent use of ATF’s Crime Gun Intelligence partnership with law enforcement and the community to ultimately disrupt the shooting cycle that negatively impact Tuscaloosa County,” Watson said. “The arrests are part of Operation Focused Remedy which leverages technology and partnerships statewide to provide a safe environment to our neighborhoods.”
“The Tuscaloosa Police Department is extremely delighted to have the assistance of the ATF in removing dangerous criminals, who commit gun crimes, from our City,” Anderson said. “We are grateful for their assistance in reducing gun violence and making Tuscaloosa a safer place.”
“This is a great example of federal and local agencies working together here in Tuscaloosa,” Abernathy said.
The majority of the 36 defendants facing current gun charges have at least 3 prior felony convictions. The total number of prior convictions tops 122. Among these arrests for violent offenses, include charges such as domestic violence, assault and attempted murder, rape and sodomy. Of the 36, there are 2 individuals that have 11 felony convictions each and 1 individual that has 10 felony convictions. Among the 40 firearms seized, 12 were identified as stolen, according to the ATF.
These cases are part of Project Safe Neighborhoods, a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Two Tampa Men Indicted for Conspiracy to Commit Identity Theft CrimesRead the Press Release
BIRMINGHAM – A federal grand jury today indicted two Tampa men for conspiracy to commit identity theft crimes announced U.S. Attorney Jay E. Town and U.S. Secret Service Special Agent in Charge Michael Williams.
This case involved use of counterfeit access devices – debit or credit cards – trailing from South Carolina to Alabama to purchase goods or pre-paid gift cards.
A three-count federal indictment charges OSMANI RAMIREZ CHAVEZ and YANKO TORRES VADELLA ALBA of Tampa, Florida, with conspiring in October 2018 in Jefferson County and elsewhere to traffic in counterfeit access devices by using them to obtain money, goods and services. The indictment also charges them with separate counts of using a counterfeit device and possession of more than fifteen counterfeit access devices on October 9, 2018 in Jefferson County.
As part of the conspiracy, Chavez and Alba went on an extended weekend spree that spans from South Carolina to Alabama buying goods and pre-paid gift cards with counterfeit credit and debit cards. They hit Walmart stores in North Augusta, South Carolina, Augusta, and Thomson, Georgia, and Oxford, Pell City, Leeds, Hoover, Homewood and Birmingham, Alabama. The defendants were arrested in Birmingham, Alabama and were found in possession of the largest number of counterfeit credit and debit cards seized by the Task Force in the Northern District of Alabama.
“The defendants in this case are facing federal charges due to the collaborative work of the Secret Service Financial Crimes Task Force with Regions Bank and Walmart Global Investigations to identify the culprits and gather the evidence of widespread fraud,” Town said. “Defendants should know that if you travel to the Northern District of Alabama with the intention of committing identity theft crimes, you will be prosecuted in federal court.”
“The prosecution of suspects committing financial crimes is an investigative priority of the U. S. Secret Service, Birmingham Field Office. Our financial crimes task force aggressively investigates financial crimes and seeks to bring offenders to justice,” Williams said. “This case is a perfect example of our mandate. We have to protect our local economy from fraudsters who travel from neighboring states to commit crimes in the Northern District of Alabama.”
The maximum penalty for the conspiracy charge is five years in prison and a $250,000 fine. The maximum penalty both for making purchases with the counterfeit access devises and for possessing device-making equipment is 10 years in prison and a $250,000 fine.
The Secret Service Financial Crimes Task Force investigated the cases in conjunction with Regions Bank and Walmart Global Investigations. Assistant U.S. Attorney Robin Beardsley Mark is prosecuting the cases.
Mexican National Indicted on Illegal Re-entry Charges Faces 5th Removal if ConvictedRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Honduran national on illegal re-entry charges, announced U.S. Attorney Jay E. Town and ICE Homeland Security Investigations Assistant Special Agent in Charge for Alabama James G. Hernandez.
A one-count indictment filed in U.S. District Court charges GERARDO FRASCO-GUTIERREZ, 44, with being in the United States illegally on Feb. 10 after having been removed from Texas on four previous occasions. Frasco-Gutierrez was living in Boaz. Frasco-Gutierrez was first removed in March of 2006. In 2007, Frasco-Gutierrez was convicted of distributing methamphetamine in Etowah County and subsequently removed in March of 2008 and again in April 2012. In July of 2016, Frasco-Gutierrez was convicted of illegally reentering the United States in the United States District Court for the Northern District of Alabama and sentenced to 27 months in federal prison. This arrest marks the fifth time Frasco-Gutierrez has been found within the United States.
The maximum penalty for illegal re-entry when a prior aggravated felony conviction exists is 20 years in prison and a $250,000 fine.
“Entering the United States without following lawful processes is a federal crime. Doing it five times is intolerable, especially while dealing poisonous methamphetamine in our District,” Town said. “Our nation’s laws must be respected, followed, and enforced fully, all elusive concepts for this illegal immigrant. The federal prison bed this defendant recently left will remain available for his return and we will work hard to ensure his stay behind bars is even longer.”
“The HSI Alabama Team is committed to promoting public safety in both the state of Alabama and the Nation,” Hernandez said. “HSI, in concert with our state and local partners, tirelessly pursues dangerous criminals threatening our society. We are proud to partner with U.S. Attorney Town in these efforts here in the Northern District of Alabama.”
Immigration and Custom Enforcement’s HSI investigated the cases, which the Assistant United States Attorney Michael Pillsbury is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Marshall County Woman Indicted for Producing Child PornographyRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Marshall County woman for producing child pornography, announced U.S. Attorney Jay E. Town and ICE Homeland Security Investigations Assistant Special Agent in Charge for Alabama James G. Hernandez.
An indictment filed in U.S. District Court charges ANNA MARIE GOMEZ, 31, with two counts of persuading a minor child to engage in sexually explicit conduct to produce an image of that conduct and transmit it across state lines. Gomez took sexually explicit pictures of a five-year old girl and sent them to a person in Florida.
“These crimes are detestable and our investigators and prosecutors will remain ever vigilant in protecting victims”, Town said. “Those who violate these laws can expect to find themselves facing a federal charge in federal court and, if convicted, a federal prison bed.”
The penalty for producing child pornography is 15 to 30 years in prison and a maximum $250,000 fine.
Immigration and Custom Enforcement’s HSI investigated the cases, which the Assistant United States Attorney Robert Becher, Sr. is prosecuting.
An indictment contains only charges. A Greene is presumed innocent unless and until proven guilty.
Huntsville Man Indicted on Multiple Counts of Tampering with Vehicle OdometersRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Huntsville man on multiple counts of tampering with vehicle odometers, announced U.S. Attorney Jay E. Town and U.S. Secret Service Special Agent in Charge Michael Williams.
A 15-count indictment filed in U.S. District Court charges RANDY EUGENE GREEN, 62, d/b/a RJ’s Auto Sales of Huntsville, with 12-counts of tampering with vehicle odometers and 3-counts of bank fraud. In the twelve counts related to odometer tampering, the offenses occurred between approximately October 1, 2014, and November 2, 2016. The largest discrepancy in the changed odometer reading was approximately 218, 678 miles. The average discrepancy in the mileage on the odometers for the various vehicles was 122,046 miles. In the three counts related to Bank Fraud, Greene engaged in a scheme to defraud Redstone Federal Credit Union. The fraud occurred when the credit union financed three of the vehicles on which the odometers had been changed. Greene was originally charged in a one count Information for odometer tampering on December 21, 2017, and the facts of that charge are included in the indictment. The indictment also indicates that Greene may have been aided and abetted by others. Green was served with a notice of forfeiture related to the bank fraud counts, which includes but not limited to a money judgement in the amount of $28,000.
“Anyone who violates federal laws and commits fraud will be vigorously investigated and prosecuted,” Town said. “Congress passed these kinds of laws to protect consumers, financial institutions, and the economy as a whole, and people who engage in this kind of shameful activity should know that there will be serious consequences when they are caught.”
“It is very important that consumers and financial institutions know that the vehicle being purchased from any auto dealership represents the true odometer reading,” Williams said. “If you have purchased a vehicle from RJ’s Auto Sales of Huntsville within the last five years and believe you are a victim of odometer rollback fraud, please contact the U.S. Secret Service at 256-922-5408.”
Tampering with an odometer, carries a maximum 3-year prison sentence and a maximum $250,000 fine. Bank fraud carries a maximum penalty of 30 years in prison and a maximum $1,000,000 fine.
U.S. Secret Service is investigating the case, which Assistant United States Attorney Russell E. Penfield is prosecuting.
An indictment contains only charges. A Greene is presumed innocent unless and until proven guilty
Georgia Man Indicted for Organizing and Operating an Interstate Jury-Duty Scam Out of His State Prison Cell in GeorgiaRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Georgia man for organizing and operating an interstate jury-duty scam out of his state prison cell in Georgia, announced U.S. Attorney Jay E. Town, FBI Special Agent in Charge Johnnie Sharp Jr. and U.S. Marshal Martin Keely.
A nine-count indictment filed in U.S. District Court charges RICO RAYMOND COOK, 45, of Georgia, with wire fraud, conspiracy to commit wire fraud and impersonating a federal officer. A federal grand jury in July indicted two other Georgia residents, TEIANA MARIE TAYLOR, 35, and ORENTHIAL WALKER, 42, for conspiracy to commit wire fraud with false information concerning jury duty.
“The federal government has many ways to make good on debts owed to the United States,” Town said. “Sometimes we knock on your door. Sometimes we don’t even knock. But we never will cold call you.”
“Sometimes we find our suspects in the front yard or back yard, it is not often we find our suspects in the prison yard,” said Keely. “This sends the message that we will find you.”
According to Cook’s indictment, he procured a cell phone for use inside the Georgia state prison where he was serving time. Georgia state prison system records show that Cook is currently serving a sentence for armed robbery, possession of a firearm by a convicted felon, false imprisonment, aggravated assault and first-degree burglary. While in prison, Cook provided the contraband cell phone to a co-conspirator who used it to call residents in the Northern District of Alabama and falsely claim to be an employee of the U.S. Marshals Service or the U.S. District Court. The caller also would falsely claim that the Alabama resident had failed to appear for jury duty, that a judge had issued a warrant for his or her arrest, and then would demand money, according to the indictment.
If the resident agreed to pay, the caller would demand that the victim transfer the money by means of gift cards or through commercial money transfer services to an account controlled by Cook and his co-conspirators, according to his indictment. Cook instructed his co-conspirators to withdraw proceeds of the scheme and transfer the money at his direction, often to members of his family, according to the indictment.
The maximum penalty for conspiracy to commit wire fraud is 20 years in prison and a $250,000 fine. The maximum penalty for wire fraud is 20 years in prison and a fine of $250,000 or twice the gross amount of gain or loss, whichever is greater. The maximum penalty for impersonating a federal official is three years in prison and a $250,000 fine or twice the gross amount of gain or loss, whichever is greater.
Victims of this fraud commonly report that the scammers sound convincing and speak authoritatively. The scammers may use real information about the victim and accurate court addresses. They may also use the real names of law enforcement officers, court officials, and federal judges to make the scam appear more credible. They may even “spoof” the phone number on caller ID so that it falsely appears to be from the court or a government agency.
Citizens can protect themselves by knowing these facts about federal jury service:
- The court will always send a jury summons by U.S. Mail.
- The court and law enforcement will never demand payment over the phone.
- The court and law enforcement will never demand a gift card number to satisfy an obligation.
- A prospective juror who disregards a jury summons will be contacted through the mail by the court clerk’s office and may, in certain circumstances, be ordered to appear before a judge. Such an order will always be in writing and signed by the judge.
- A fine will never be imposed until after the individual has appeared in court and been given the opportunity to explain his or her failure to appear. If a fine is imposed, it will be in open court and reduced to writing (and will not be payable by gift card number).
Citizens who wish to verify whether they were summoned for federal jury duty may contact the Northern District of Alabama’s jury office at 1-800-222-8715. Citizens can report a scam phone call by contacting the FBI Birmingham Field Office at 205-326-6166.
The FBI and the U.S. Marshals Service investigated this case, which Assistant U.S. Attorney Jonathan S. Keim is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Justice Department’s Criminal Division Creates Appalachian Regional Prescription Opioid Strike Force to Focus on Illegal Opioid PrescriptionsRead the Press Release
WASHINGTON - Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division today announced the formation of the Appalachian Regional Prescription Opioid Strike Force (ARPO Strike Force), a joint law enforcement effort that brings together the resources and expertise of the Health Care Fraud Unit in the Criminal Division’s Fraud Section (HCF Unit), the U.S. Attorney’s Offices for nine federal districts in five states, as well as law enforcement partners at the FBI, U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) and U.S. Drug Enforcement Administration (DEA). The mission of the ARPO Strike Force is to identify and investigate health care fraud schemes in the Appalachian region and surrounding areas, and to effectively and efficiently prosecute medical professionals and others involved in the illegal prescription and distribution of opioids.
Assistant Attorney General Benczkowski was joined in the announcement by U.S. Attorney Robert M. Duncan Jr. for the Eastern District of Kentucky; U.S. Attorney Russell M. Coleman for the Western District of Kentucky; U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio; U.S. Attorney William J. Powell for the Northern District of West Virginia; U.S. Attorney Michael B. Stuart for the Southern District of West Virginia; U.S. Attorney J. Douglas Overbey for the Eastern District of Tennessee; U.S. Attorney Donald Q. Cochran for the Middle District of Tennessee; U.S. Attorney D. Michael Dunavant for the Western District of Tennessee; U.S. Attorney Jay E. Town for the Northern District of Alabama; Assistant Director Robert Johnson of the FBI’s Criminal Investigative Division; Deputy Inspector General for Investigations Gary L. Cantrell of the Department of Health and Human Services Office of Inspector General (HHS-OIG) and Assistant Administrator John J. Martin of the DEA Diversion Control Division.
“While the opioid epidemic continues to inflict untold pain and suffering on people across the country, the devastation in the Appalachian region and adjacent areas has been particularly staggering,” said Assistant Attorney General Benczkowski. “It is all the more reprehensible when unscrupulous physicians and pharmacies contribute to the epidemic by illegally supplying dangerous prescription painkillers. Working with our partners in U.S. Attorney’s Offices and law enforcement, the Appalachian Regional Prescription Opioid Strike Force will combat illegal prescription opioids and health care fraud by holding accountable corrupt medical professionals who seek to profit off the crisis of opioid addiction.”
“The creation of the Appalachian Regional Prescription Opioid Strike Force will bring together critical resources from the FBI and our partners to fight health care fraud in this region and the growing opioid epidemic that faces the United States,” said FBI Assistant Director Johnson. “Healthcare fraud touches every corner of the United States, and through this strike force, the FBI will continue our tireless work to combat illegal opioid prescriptions and bring to justice those medical professionals who put their greed over the health and wellbeing of their patients.”
“The opioid epidemic has had a devastating impact on Americans across the country, including the people of the Appalachian region,” said HHS-OIG Deputy Inspector General for Investigations Cantrell. “The Strike Force model is a proven mechanism to target illicit conduct and hold accountable criminals involved in illegal opioid prescription and distribution schemes. We will continue to work closely with our federal, state, and local law enforcement partners to curb this damaging epidemic.”
“Our nation’s opioid crisis requires us to work with unprecedented urgency in attacking drug diversion at every level,” said DEA Assistant Administrator Martin. “These joint strike force efforts will save lives, while allowing us to better target and bring to justice those who facilitate addiction and profit at the expense of the weakest and most afflicted.”
“The creation of this Strike Force is yet another example of the Department of Justice’s commitment to aggressively addressing our nation’s opioid crisis,” said U.S. Attorney Jay E. Town. “This Strike Force won’t just effectively and thoroughly prosecute pill mill doctors who have chosen to sacrifice the efficacy of care for their own personal greed, it will save lives in the process. The leadership of Attorney General Sessions in addressing this public health emergency has been unwavering and relentless.”
Prior to this announcement, the HCF Unit operated Medicare Fraud Strike Force’s in 12 locations across the United States including Miami, Florida; Los Angeles, California; Detroit, Michigan; Houston, Texas; Brooklyn, New York; Baton Rouge and New Orleans, Louisiana; Tampa/Orlando, Florida; Chicago, Illinois; and Dallas, Texas, along with a Corporate Strike Force located in Washington, D.C., and the Newark/Philadelphia Regional Medicare Fraud Strike Force. The Strike Forces represent a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI, HHS-OIG and the DEA.
The ARPO Strike Force will be made up of prosecutors and data analysts with the HCF Unit, prosecutors with the nine U.S. Attorney’s Offices in the region, and special agents with the FBI, HHS-OIG and DEA. The ARPO Strike Force will operate out of two hubs based in the Cincinnati/Northern Kentucky, and Nashville, Tennessee, areas, supporting the nine districts that make up the ARPO Strike Force region. In addition, the APRO Strike Force will work closely with other various federal law enforcement agencies, including the U.S. Postal Inspection Service and IRS Criminal Investigation, and State Medicaid Fraud Control Units.
The ARPO Strike Force will target criminal conduct associated with the improper prescription and distribution of prescription opioids and other dangerous narcotics throughout the Appalachian region and surrounding areas – focusing on criminal conduct by physicians, pharmacists, and other medical professionals. The ARPO Strike Force will also investigate and prosecute violations of health care fraud whenever such fraud is detected throughout the region.
In June, Attorney General Jeff Sessions and Department of Health and Human Services (HHS) Secretary Alex M. Azar III noted the success of the Strike Force model while announcing the largest ever health care fraud enforcement action involving 601 charged defendants across 58 federal districts, including 165 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $2 billion in false billings. Of those charged, 162 defendants, including 76 doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. More information can be obtained at https://www.justice.gov/opa/documents-and-resources-june-28-2018.
In August, Assistant Attorney General Benczkowski announced the Newark/Philadelphia Medicare Fraud Strike Force, which focuses on health care fraud and illegal opioid prescriptions in the Newark/Philadelphia region.
The Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the prosecutors in the 12 Medicare Fraud Strike Force locations have charged over 4,000 defendants who collectively have falsely billed the Medicare program for over $14 billion. Since January 2017, the HCF Unit has charged over 85 defendants, including 33 doctors with the illegal prescription of opioids (nearly 30 million pills).
Tuscaloosa Man Sentenced to Ten Years in Federal Prison for Gun Possession Thanks to Joint Law Enforcement EffortRead the Press Release
A federal judge on Tuesday sentenced STANLEY KEON WALKER, 23, of Tuscaloosa to 120 months in prison for being a felon in possession of a firearm, announced U.S. Attorney Jay E. Town, Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agent in Charge Marcus S. Watson and Tuscaloosa County District Attorney Hays Webb.
“Developing stronger relationships with local and state law enforcement continues to be a top priority for my office,” Town said. “This defendant got the jurisdictional maximum sentence of ten years for possessing a firearm. Our state partners recognized that this defendant was one of their worst offenders, knew a state charge would likely result in probation or a short sentence, and helped us prosecute this case in federal court where there are real consequences and real time behind bars. This is the new normal!”
ATF Special Agent in Charge, Marcus Watson said. “ATF’s Crime Gun Intelligence Centers are the driving force to reduce the violent crime that plagues our neighborhoods. This sentencing illustrates the effective partnerships with law enforcement and the community.”
It starts with good relationships, and I am very happy with our collaborations with the U.S Attorney’s Office,” Webb said. “Our shared focus is public safety, and I am always pleased when we get violent criminals off of our Tuscaloosa County streets.”
Court records relate the arrest that led to Walker’s conviction as follows:
On or about June 29, 2016, officers of the Tuscaloosa Police were dispatched to an apartment complex after a caller advised that several people with guns were preparing to fight there. Officers responding to the scene and observed the car that had been identified as belonging to Walker, who was involved in the pending altercation.
Officers approached the car, which had a window partially down, and gave orders for Walker to get out of the car. Walker initially acted as though he were going to comply, but then accelerated toward the officers and their patrol vehicles, striking a police officer, a police car and a civilian vehicle. He exited the vehicle and ran. Officers found Walker hiding under an SUV in the apartment complex parking lot. Officers found a gun in the driver’s side floorboard of the car that Walker was driving.
Walker previously was convicted of two counts of attempted murder in May 2015 in Circuit Court of Tuscaloosa County.
Walker pleaded guilty to the charge in June.
ATF investigated the case, in partnership with the Tuscaloosa Police Department and the Tuscaloosa District Attorney’s Office, which Assistant U.S. Attorney Melissa K. Atwood prosecuted.
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DEA Prescription Drug Take-Back Day is October 27Read the Press Release
BIRMINGHAM – Saturday is the Drug Enforcement Administration’s 16th National Prescription Drug Take-Back Day, announced U.S. Attorney Jay E. Town.
“Opioids that you no longer need are not just loaded guns sitting in your medicine cabinet. They are loaded guns with a hair trigger and no safety,” Town said. The opioid crisis in America is the deadliest in our history. Let’s do our part to protect our loved ones from prescription drug abuse, opioid addiction, and even potential progression to heroin use, and clean out our medicine cabinets and drop those drugs off for proper disposal.”
This weekend, more than 5,400 collection sites manned by more than 4,400 partner law enforcement agencies will be open 10 a.m. to 2 p.m. local time. The public can find a nearby collection site at www.DEATakeBack.com
or by calling 800-882-9539. (DEA cannot accept liquids, needles or sharps.)
The National Prescription Drug Take Back Day Initiative addresses a critical public safety and public health issue. Rates of prescription drug abuse in the United States continue to be alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. The Environmental Protection Agency and the Food and Drug Administration have advised the public that flushing their prescription drugs down the toilet or throwing them in the trash pose potential safety and health hazards. The DEA prescription drug take back program provides an anonymous and safe way to dispose of prescription medications.
National Take Back Day has received robust public support since its inception in 2010. Last April, the public turned in 456 tons (912,305 pounds) of prescription drugs at more than 5,800 sites operated by the DEA and nearly 4,700 of its local and tribal partners nationwide. In the New Orleans Field Division, the following amounts were collected last April: Louisiana – 4,800 pounds; Mississippi – 4,455 pounds; Alabama – 6,074 pounds; and Arkansas – 27,809 pounds.
Parents and children are encouraged to educate themselves about the dangers of drugs by visiting DEA’s interactive websites at www.JustThinkTwice.com, www.GetSmartAboutDrugs.com and www.dea.gov.
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