Northern District of Alabama
Press releases recorded for this federal judicial district.
Florence Man Indicted on Federal Domestic Violence and Stalking ChargesRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Florence man on interstate domestic violence and stalking charges for assaulting and sending threatening phone messages to a former girlfriend living on Redstone Arsenal, announced U.S. Attorney Joyce White Vance.
An indictment filed in U.S. District Court charges RONNIE CHRISTOPHER RICKS, 46, with one count of interstate domestic violence for coming into the U.S. government’s special territorial jurisdiction of Redstone Arsenal and striking his former girlfriend with his fists on Aug. 5. The indictment also charges Ricks with interstate stalking for using an electronic communication system of interstate commerce, a cellular telephone, in order to harass or intimidate the woman and cause, or attempt to cause her substantial emotional distress.
The maximum penalty for each count is five years in prison and a $250,000 fine.
The Redstone Arsenal Police investigated the case, which Assistant U.S. Attorney David Estes is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Cullman County Man and Dekalb County Man Indicted Separately for Child PornographyRead the Press Release
BIRMINGHAM – A federal grand jury today returned separate child pornography indictments against a Dekalb County man and a Cullman County man, announced U.S. Attorney Joyce White Vance and Homeland Security Investigations, New Orleans Field Office, Special Agent in Charge Raymond R. Parmer Jr.
Unrelated indictments filed in U.S. District Court charge both FRANK DEWAYNE KELLEY, 46, of Dekalb County, and JAMES KEITH STEWART, 36, of Cullman County, with receiving, distributing and possessing child pornography.
Stewart currently is serving time for a 2013 conviction on state charges in Chilton County for sexual abuse of a child younger than 12. He also was convicted by court martial in 2003 for indecent acts upon a child. Today’s indictment charges Stewart with two counts of distributing child pornography and one count each of receiving and possessing child pornography, all between 2010 and 2012.
Kelley faces one count each of receiving, distributing and possessing child pornography between 2014 and 2015.
The maximum penalty for each count of receiving, distributing, and possessing child pornography is 20 years in prison and a $250,000 fine. The maximum penalty for distribution and receipt of child pornography increases to 40 years and a mandatory minimum of 15 years is imposed for individuals with prior sex offenses. A mandatory minimum of 10 years for possession of child pornography applies to individuals with prior sex offenses.
HSI investigated the cases. Assistant U.S. Attorney Jacquelyn Hutzell is prosecuting Kelley’s case and Assistant U.S. Attorney Erica Barnes is prosecuting Stewart’s case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Office Manager Pleads Guilty to Stealing More Than $580,000 from Birmingham Surgical PracticeRead the Press Release
BIRMINGHAM -- The office manager of a Birmingham surgical practice pleaded guilty Tuesday to charges that she stole at least $580,000 from her employer, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton and Internal Revenue Service and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Veronica Hyman-Pillot.
ANNTWINE MOSS, 49, of Bessemer, entered her plea before U.S. District Judge Karon O. Bowdre to five counts of wire fraud and four counts of tax evasion for stealing from Thoracic and Cardiovascular Surgery of Alabama between 2006 and 2013. Sentencing is scheduled June 9.
According to the indictment and Moss’ plea agreement with the government, she executed a scheme to defraud the surgical practice by using her authority as office manager to write unauthorized checks to herself, make unauthorized direct deposits into her account, and use the company's credit cards for unauthorized personal purchases. As office manager, Moss had authority over several key functions including payroll, accounting, bookkeeping and managing the office's budget. She falsified her personal tax returns for several years by failing to report to the IRS the illicit income she stole from TCVSA.
The maximum penalty for each wire fraud count is 20 years in prison and a fine of $250,000, while the tax evasion count carries a maximum penalty of 20 years in prison and a $100,000 fine.
The FBI and IRS investigated the case, which Assistant U.S. Attorney Xavier O. Carter Sr. is prosecuting.
Former Madison County, Alabama, Deputy Pleads Guilty to Lying Under Oath to Obstruct Investigation into BeatingRead the Press Release
The Justice Department announced today that Justin Watson, 31, a former deputy with the Madison County Sheriff’s Office in Huntsville, Alabama, has pleaded guilty to obstructing a federal investigation into the beating of a local handyman.
According to evidence presented in court, Watson, while off-duty, got into a bar fight with the handyman. Watson searched for the man over the next several weeks, and when he observed the man driving down the highway, Watson pulled him over and ordered him out of his truck. Watson proceeded to strike the man in the face, hit him with a baton and choke him until he was unconscious. At a later criminal proceeding, Watson knowingly and falsely claimed, under oath, that he had never seen the man before the traffic stop and that he had not gotten into a bar fight with the man.
“This deputy, who was sworn to uphold the law, brazenly chose to violate it,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We cannot, and will not, tolerate police officers who lie under oath to obstruct the pursuit of justice.”
“My office is committed to investigating allegations of police misconduct, and prosecuting cases where appropriate, in order to ensure that everyone in our community can expect fair treatment from law enforcement,” said U.S. Attorney Joyce White Vance of the Northern District of Alabama. “Any law enforcement officer who tries to interfere with an investigation into police misconduct should expect scrutiny for that misbehavior, as well. The vast majority of police officers perform their duties with integrity, even in difficult and trying situations, and support efforts to prosecute officers who commit misconduct. We appreciate that professionalism and want the public to be aware that we are committed, alongside of our state and local law enforcement colleagues, to ensuring that police officers behave in a fair and lawful manner.”
Watson faces a maximum sentence of 20 years in federal prison. He will be sentenced at a later date.
This case was investigated by the FBI, and was prosecuted by Assistant U.S. Attorney Mary Stuart Burrell of the Northern District of Alabama and Trial Attorney Christopher Perras of the Criminal Section of the Civil Rights Division.
Watson Plea Agreement
Former Madison County Deputy Pleads Guilty to Lying Under Oath to Obstruct Investigation into BeatingRead the Press Release
HUNTSVILLE – Former Madison County Sheriff’s Deputy Justin Watson, 31, pleaded guilty today to obstructing a federal investigation into the beating of a local handyman, U.S. Attorney Joyce White Vance and the Justice Department announced.
According to evidence presented in court, Watson, while off-duty, got into a bar fight with the handyman. Watson searched for the man over the next several weeks, and when he observed the man driving down the highway, Watson pulled him over and ordered him out of his truck. Watson proceeded to strike the man in the face, hit him with a baton and choke him until he was unconscious. At a later criminal proceeding, Watson knowingly and falsely claimed, under oath, that he had never seen the man before the traffic stop and that he had not gotten into a bar fight with the man.
“This deputy, who was sworn to uphold the law, brazenly chose to violate it,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We cannot, and will not, tolerate police officers who lie under oath to obstruct the pursuit of justice.”
“My office is committed to investigating allegations of police misconduct, and prosecuting cases where appropriate, in order to ensure that everyone in our community can expect fair treatment from law enforcement,” Vance said. “Any law enforcement officer who tries to interfere with an investigation into police misconduct should expect scrutiny for that misbehavior, as well. The vast majority of police officers performs their duties with integrity, even in difficult and trying situations, and supports efforts to prosecute officers who commit misconduct. We appreciate that professionalism and want the public to be aware that we are committed, alongside of our state and local law enforcement colleagues, to ensuring that police officers behave in a fair and lawful manner.”
Watson faces a maximum sentence of 20 years in federal prison. He will be sentenced at a later date.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Mary Stuart Burrell and Trial Attorney Christopher Perras of the Criminal Section of the DOJ Civil Rights Division.
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Federal Jury Convicts Jefferson County Man for Receiving, Distributing and Possessing Child PornographyRead the Press Release
BIRMINGHAM – A federal jury on Wednesday convicted a Jefferson County man on multiple charges of receiving, distributing and possessing child pornography, announced U.S. Attorney Joyce White Vance and Alabama Law Enforcement Agency Secretary Spencer Collier.
Following a three-day trial before U.S. District Judge R. David Proctor, the jury deliberated less than one hour before convicting MARK ALAN LOVE, 50, for receiving, distributing and possessing child pornography between 2010 and 2014.
Love used his home computer and a peer-to-peer file sharing program to download and share thousands of images of child pornography, including images of prepubescent children under 12 years old, according to evidence at trial.
Love remains in federal custody. He is scheduled for sentencing April 19.
The Internet Crimes Against Children Task Force and ALEA’s State Bureau of Investigation investigated the case. Assistant U.S. Attorneys Jacquelyn M. Hutzell and Daniel J. Fortune prosecuted the case.
Alabama Courts Not Free to Disobey U.S. Supreme Court on Marriage Equality: U.S. Attorneys Joyce White Vance & Kenyen BrownRead the Press Release
“The Chief Justice of the Alabama Supreme Court has issued an administrative order, directing probate judges that they may not issue marriage licenses to same-sex couples, despite the U.S. Supreme Court's decision last year on marriage equality. We have grave concerns about this order, which directs Alabama probate judges to disobey the ruling of the Supreme Court,” said U.S. Attorneys Joyce White Vance of the Northern District of Alabama and Kenyen Brown of the Southern District of Alabama. “Government officials are free to disagree with the law, but not to disobey it. This issue has been decided by the highest court in the land and Alabama must follow that law.”
Jasper Pharmacist and a Pharmacy Technician Indicted for Conspiracy to Illegally Distribute Prescription DrugsRead the Press Release
BIRMINGHAM – A Jasper pharmacist and one of his pharmacy technicians turned themselves in to Federal Drug Enforcement Administration agents today on charges that they conspired to illegally distribute opioid painkillers and other controlled substances, announced U.S. Attorney Joyce White Vance and DEA Assistant Special Agent in Charge Clay A. Morris.
The charges are the result of a long-term investigation conducted in connection with DEA’s Operation Pilluted earlier this year in Alabama, Arkansas, Louisiana and Mississippi, which focused on reducing the trafficking and abuse of pharmaceuticals and brought about the prosecution of three Birmingham-area physicians for illegally distributing controlled substances.
A federal grand jury on Monday indicted pharmacist GEORGE RICHARD BOLLING JR., 54, and technician CASSANDRA TAYLOR HOLLIMAN, 44, of Fayette, on one count of conspiring, between January 2013 and March 2015, to illegally distribute and dispense prescription drugs including oxycodone, methadone, morphine sulfate, hydrocodone, ketamine HCL, zolpidem tartrate, alprazolam and clonazepam in Walker, Lamar, Winston and Fayette counties. Bolling owned five northwestern Alabama pharmacies that were implicated in the conspiracy: Berry Discount Apothecary in Berry, Bolling Apothecary in Fayette, Hospital Discount Apothecary in Vernon, Brown’s Discount Apothecary in Jasper, and Gateway Discount Apothecary in Double Springs.
“Alabama leads the nation in the number of per capita prescriptions for opioid painkillers,” Vance said. “Medically necessary use of painkillers is appropriate, but when a pharmacist violates his medical oath and becomes a drug dealer, preying on prescription drug addicts like any other trafficker in illegal drugs, he should expect the same sort of prosecution.
“Abusers of prescription opiates often shift to heroin abuse, and that trend contributes to our epidemic overdose death rates,” Vance said. “Pharmacists should not abuse the trust the community places in them by selling opiates illegally in order to make a profit,” she said.
“The abuse of prescription drugs is a serious problem in our communities,” Morris said. “All too often, this abuse leads to addiction, shattered lives, and even death. For the health and safety of our citizens, DEA and our local law enforcement partners will continue to target those who unlawfully obtain and distribute these potentially dangerous drugs,” he said. “We hope that the arrests in this case serve as a reminder to anyone who might illegally divert pharmaceuticals that they will be held accountable for the harm they cause.”
Monday’s indictment also charges Bolling with two counts of illegally transferring oxycodone, an opioid painkiller, between pharmacies in Walker and Fayette counties, once on March 6, 2013, and once on July 21, 2013. It also charges him with directing a pharmacy employee to destroy evidence, and with 14 counts of using a telephone to facilitate the charged drug-trafficking conspiracy.
The indictment charges Holliman with aiding and abetting Bolling’s illegal transfer of oxycodone between pharmacies in July 2013.
In the course of the Bolling investigation, four other people associated with Bolling have been charged with narcotics offenses. JOSEPH ANTHONY “Stick” CACIOPPO, 52, of Jasper, co-owner of Brown’s Discount Apothecary, pleaded guilty to conspiring to distribute ketamine HCL, a surgical anesthetic. TERI JO TUCK, 53, also of Jasper and a nurse, pleaded guilty to conspiring to distribute ketamine HCL pursuant to fraudulent prescriptions. In addition, two pharmacists employed by Bolling – TERRY DUKE, 60, and his brother, RONNIE DUKE, 63, – were charged today and have entered agreements to plead guilty, Terry Duke to distributing prescription painkillers, and Ronnie Duke to knowingly omitting material information from controlled substance records.
The physicians prosecuted this year are Muhammad Wasim Ali, 51, of Vestavia Hills, who owned a pain clinic in Jasper, Ernest Albert Clayton, 72, who practiced medicine at a Midfield clinic, and Peter Alan Lodewick, 73, who was a physician at Lodewick Diabetes Center on Montclair Road. Ali and Clayton pleaded guilty to dispensing narcotic painkillers without a legitimate medical reason. Lodewick pleaded guilty to assisting someone else in acquiring oxycodone by “misrepresentation, fraud, forgery, deception and subterfuge.”
The maximum penalty for the conspiracy charge is 20 years in prison and a $1million fine. The charges for illegal transfer of narcotics carry a maximum penalty of four years in prison and a $250,000 fine. The maximum penalty for directing a witness to destroy evidence of a crime is 20 years in prison and a $250,000 fine. Each count of using a telephone to further a drug-trafficking crime carries a maximum penalty of four years in prison and a $250,000 fine.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Federal Grand Jury Indicts Two Mexican Men for Knowingly Transporting Illegal Aliens in the United StatesRead the Press Release
BIRMINGHAM -- A federal grand jury today indicted two Mexican men on charges that they knowingly transported illegal aliens within the United States for personal financial gain, announced U.S. Attorney Joyce White Vance and Department of Homeland Security’s Immigration and Customs Enforcement Agency Special Agent in Charge Raymond R. Parmer Jr.
A six-count indictment filed in the U.S. District Court charges Roldan Palacios-Rincon, 31, and Martin Rodriguez-Guadarrama, 33, with transporting five individuals through Greene County on Nov. 9 who they knew were in the United States illegally. According to the indictment, Palacios-Rincon and Rodriguez-Guadarrama transported the individuals for private financial gain.
The maximum penalty for alien smuggling is 10 years in prison and a $100,000 fine.
Also included in the indictment was one count charging Jeronimo Mejia, 52, with illegally re-entering the United States after being convicted of an aggravated felony and deported. The maximum penalty for illegal re-entry is 20 years in prison and a $200,000 fine.
DHS-ICE investigated the case, which Assistant U.S. Attorneys Manu K. Balachandran and Erica W. Barnes are prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Decatur Man Indicted for Failure to Register as a Sex Offender, Misuse of a Social Security Number and Identity TheftRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Decatur man for failing to register as a sex offender and misusing another person’s Social Security number and other means of identification, announced U.S. Attorney Joyce White Vance and U.S. Marshal Martin Keely.
A five-count indictment filed in U.S. District Court charges FREDDIE DEWAYNE LONG, 34, with failure to register as a sex offender after moving from Tennessee to Alabama earlier this year, misuse of another person’s Social Security number on multiple occasions, and aggravated identity theft.
If convicted of failure to register as a sex offender, Long could be sentenced to a maximum 10 years in prison and a $250,000 fine. Each charge of misuse of a Social Security number carries a maximum sentence of five years’ custody and a $250,000 fine. Each aggravated identity theft charge carries a mandatory sentence of two years in prison and a $250,000 fine.
The U.S. Marshals Service and Social Security Administration Office of the Inspector General investigated the case, which Assistant U.S. Attorneys Melissa K. Atwood and John B. Ward are prosecuting.
An indictment contains only charges. A defendant is presumed innocent of the charges unless and until proven guilty.
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IRS Employee Charged in $1 Million ID Theft Tax Fraud SchemeRead the Press Release
BIRMINGHAM -- Federal officials today announced arrests and charges in a stolen identity tax-refund scheme believed to involve more than $1 million in false claims and run by an IRS employee who was supposed to be assisting taxpayers experiencing problems resulting from identity theft.
A federal grand jury earlier this month indicted NAKEISHA HALL, JIMMIE GOODMAN and ABDULLA COLEMAN for their involvement in a 2008 to 2011 scheme operated out of Birmingham that involved stealing personal identity information from the Internal Revenue Service to create fraudulent tax returns and collecting the stolen refunds, announced U.S. Attorney Joyce White Vance, IRS Criminal Investigation, St. Louis Field Office, Special Agent in Charge Karl A. Stiften, and Treasury Inspector General for Tax Administration, Mid-States Field Division, Special Agent in Charge Ruben Florez. The indictment was unsealed with today’s arrests.
Hall, 39, is an IRS employee who worked in the Taxpayer Advocate Service office in Birmingham from July 2007 to November 2011. Since November 2011, Hall has worked in Taxpayer Advocate Service offices in Omaha, Neb., New Orleans, La., and Salt Lake City, Utah. Federal agents arrested Hall today in Holly Springs, Miss. Federal agents also arrested Goodman, 37, of Birmingham, at her Cherry Avenue residence. Coleman, 37, formerly of Birmingham, is already in state custody in Wisconsin on unrelated charges.
In conjunction with the arrests of Hall and Goodman, federal officials also unsealed charges relating to another co-conspirator, LASHON ROBERSON. The Government filed a five-count information in October charging Roberson, 36, of Pelham, with Conspiracy to Commit Mail Fraud Affecting a Financial Institution and four counts of Mail Fraud Affecting a Financial Institution.
“Taxpayers trust, and expect, that IRS employees, as a whole, will safeguard their most sensitive personal information. Taxpayers also must trust that IRS employees in the Taxpayer Advocate Service will not only protect their sensitive information but will actively assist them when it has been compromised by others,” Vance said. “An IRS taxpayer advocate who exploits that trust, and with full knowledge of the significant impacts of identity theft, uses her IRS access to compromise taxpayers’ identities and steal a million dollars from the U.S. Treasury is committing a particularly egregious crime that will not go unpunished,” Vance said. “I thank the TIGTA and IRS-CI investigators who worked diligently with my office to bring this case forward.”
“It is the Treasury Inspector General for Tax Administration's mission to protect the integrity of the Internal Revenue Service and promote the fair administration of our federal tax system,” Florez said. “IRS employees must conduct themselves with the highest level of integrity and their conduct must be above reproach. IRS employees who commit aggravated identity theft, steal government funds and access taxpayer information without authorization cannot be tolerated,” he said. “TIGTA will work closely with the United States Attorney’s Office to hold individuals, particularly those in positions of public trust, responsible for their illegal activities.”
“Individuals who commit refund fraud and identity theft of this magnitude and with this degree of dishonesty and deceit deserve to be punished to the fullest extent of the law,” Stiften said. “IRS Criminal Investigation and our law enforcement partners remain vigilant in identifying, investigating and prosecuting those individuals who seek to willfully defraud the United States Treasury and blatantly disregard the victims of their schemes,” he said. “The bad acts of one IRS employee shouldn’t taint the great work done by the thousands of IRS employees who assist taxpayers each and every day.”
The December indictment charges Hall, Goodman and Coleman with conspiring with others known and unknown to the Grand Jury to commit bank fraud and mail fraud affecting a financial institution. The indictment also charges Hall with one count each of theft of government funds, aggravated identity theft and unauthorized access to a protected computer.
Hall, Goodman, Coleman and others conspired to defraud both the IRS and financial institutions, including Bancorp Bank, between January 2008 and November 2011, and used the U.S. mail to execute the fraud, according to the indictment. Hall, Goodman, Coleman and others also conspired to obtain money from Bancorp Bank and other financial institutions. Bancorp Bank and other financial institutions issue stand-alone debit cards for the purpose of accepting tax refunds.
The multi-year conspiracy was conducted as follows, according to the indictment:
Hall obtained individuals’ names, birth dates and Social Security numbers through unauthorized access to IRS computers. Hall used the personal identity information to prepare fraudulent income tax returns and submitted them electronically to the IRS. Hall requested that the IRS pay the refunds onto debit cards and directed that the cards be mailed to drop addresses that she controlled. Hall solicited and received drop addresses from Goodman, Coleman and other co-conspirators, who also collected the refund cards from the mail.
Hall activated the cards by using stolen identity information. She, Goodman, Coleman and other co-conspirators took the money off the debit cards at ATMs or used the cards for purchases. If the fraudulent returns generated U.S. Treasury checks rather than the requested debit cards, Hall and her co-conspirators used fraudulent endorsements in order to cash the checks. Hall compensated Goodman, Coleman and other co-conspirators by giving them a portion of the refund money, or by giving them refund cards for their own use.
The theft, aggravated identity, and unauthorized access counts relate to two specific taxpayers’ information that Hall accessed and used in 2010.
The conspiracy charge carries a maximum penalty of 30 years in prison and a $1 million fine. The maximum prison penalty for theft of government funds is 10 years in prison. Aggravated identity theft carries a mandatory two-year prison term, and unauthorized access to a protected computer carries a maximum five-year prison term. All three charges carry a maximum $250,000 penalty.
IRS-CI and TIGTA investigated the case, which Assistant U.S. Attorney Erica Williamson Barnes is prosecuting.
An indictment contains only charges. Defendants are presumed innocent unless and until proven guilty.
Jefferson County Chosen as One of Seven National Pilot Sites for DOJ Program to Strengthen the Justice System’s Response to Sexual AssaultRead the Press Release
BIRMINGHAM -- Jefferson County has been selected as one of seven pilot sites nationwide to receive funding through the Department of Justice’s Office on Violence Against Women to improve how the justice system in general, and prosecution in particular, handles sexual assault cases, announced U.S. Attorney Joyce White Vance, Jefferson County District Attorney Brandon Falls, Sheriff Mike Hale and Crisis Center Executive Director Meg McGlamery.
Through OVW’s Sexual Assault Justice Initiative, the Jefferson County Commission will receive $400,000 to implement performance measures that reflect promising practices for prosecuting sexual assault cases and promoting justice for victims. U.S. Attorney General Loretta Lynch announced the seven pilot sites this week. Jefferson County joins the city of Los Angeles, Cobb County, Ga., the city and county of Honolulu, the New Hampshire Department of Justice in Concord, the Cherokee Nation in Tahlequah, Okla., and Sauk County, Wis.
“Sexual and domestic violence is a heinous crime, inflicting physical and emotional trauma that can linger for years, with grave consequences for survivors and their loved ones; for neighborhoods and communities and for our country as a whole,” Lynch said. “The Department of Justice is committed to doing everything it can to help prevent, investigate and prosecute these horrendous crimes – including working to ensure that our greatest partners in this effort, the state and local law enforcement officers on whom we all rely, have the tools, training and resources they need to fairly and effectively address allegations of sexual assault and domestic violence.”
“Sexual assault, domestic violence, dating violence and stalking are serious crimes that require a robust criminal justice system response in coordination with community-based organizations and victim service providers,” Vance said. “I am proud of leaders in our community for putting together this outstanding program, which has earned a pilot site designation from the Department of Justice. This program will strengthen prosecutions and promote justice for victims.”
The Jefferson County District Attorney’s Office, the Jefferson County Sheriff’s Office and the non-profit Crisis Center will collaborate on the goals of the initiative. Specifically, funds awarded to Jefferson County will support the development of a specialized unit within the DA’s Office to coordinate investigation and prosecution of sexual assault crimes. The unit will include a bilingual investigator, rape response advocate and special prosecutor. In addition to coordinating investigation and prosecution of sexual assault crimes across the jurisdiction, the special unit will develop and implement a training program for prosecutors and law enforcement, and establish a vertical prosecution program for sexual assaults in Jefferson County, whereby one prosecutor would be assigned to handle a case from start to finish.
The grant award also will support development of enhanced response protocols for the county-wide criminal justice system, and will address reporting barriers for immigrant victims of sexual violence.
“Next year will be a great year for the expansion of services and training of law enforcement, thanks to this Sexual Assault Justice Initiative and the coordinated efforts aimed at combatting sexual assault crimes,” Falls said. “Already this year, my office has worked with the Crisis Center, the YWCA, and the City of Birmingham to launch a Family Justice Center with a focus on assisting victims of sexual assault and domestic violence across Jefferson County. Now, this grant will complement those efforts as a force multiplier aimed at developing best practices in investigation and prosecution, while providing direct training for law enforcement across the county,” he said. “I am thrilled that our efforts in securing this grant have come to fruition, and I look forward to the results we can achieve.”
“I am excited about the possibilities that participation in the Sexual Assault Justice Initiative will offer to victims in Jefferson County,” Hale said. “My office is committed to the success of this project. Every effort will be made to ensure that our deputies participate in the training, support the initiative, and influence other law enforcement agencies to participate.”
“The Department of Justice’s Office on Violence Against Women’s Sexual Assault Justice Initiative will empower survivors of sexual violence to have increased support with and through the criminal justice system,” McGlamery said. “The Crisis Center is excited to deepen our partnership with the Jefferson County District Attorney’s Office and the Sheriff’s Office to provide advocacy and support for those affected by this terrible and prevalent crime.”
The Crisis Center asks that anyone who needs assistance related to sexual violence, or knows of someone who needs help, please call its Rape Response hotline at (205) 323-7273. All services are free and confidential.
The Sexual Assault Justice Initiative grants are part of the Justice Department’s ongoing commitment to protecting women from violence and strengthening the capacity of communities to respond to domestic and sexual violence.
The pilot initiative is designed to strengthen the justice system’s response to sexual violence and enhance collaborations among sexual assault victim services providers, law enforcement agencies and sexual assault medical forensic services providers. With funding from the Grants to Encourage Arrest Policies and Enforcement of Protection Orders Program, the Rural Sexual Assault, Domestic Violence, Dating Violence and Stalking Grant Program and the Tribal Governments Grant Program, SAJI sites will be able to use the funds to strengthen services in their communities that support sexual assault victims.
For more information on OVW and its programs, please visit: www.justice.gov/ovw.
Jewish Temple’s Former Accounting Manager Sentenced to Prison for Stealing from TempleRead the Press Release
BIRMINGHAM – A federal judge today sentenced the former Temple Emanu-el accounting manager to six months in prison and six months in home detention for stealing from his employer, announced First Assistant U.S. Attorney Robert Posey and FBI Special Agent in Charge Roger C. Stanton.
U.S. District Court Judge Abdul Kallon sentenced CHARLES M. COLLINS, 66, of Moody, on one count of wire fraud as part of Collins’ scheme to steal from the Birmingham temple. The judge ordered Collins to pay the Temple $80,545 in restitution for the $41,098 that he stole, plus the cost of a forensic audit to determine the embezzlement amount. Collins pleaded guilty to the fraud in September. He must report to prison Feb. 16.
Collins worked as the accounting manager for Temple Emanu-el from June 2008 to November 2013, when his scheme was discovered. In his plea agreement with prosecutors, he admitted that he took advantage of his position to send unauthorized wire transfers from a local bank into his own personal bank accounts. Collins agreed to forfeit $41,098 to the government as proceeds of illegal activity.
The FBI investigated the case, which Assistant U.S. Attorney Xavier O. Carter Sr. prosecuted.
Alabama Man Found Guilty of Aggravated Sexual Abuse of a ChildRead the Press Release
A federal jury convicted Rick Lee Evans, 43, of Anniston, Alabama, today of aggravated sexual abuse of a child after a five-day trial, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Joyce White Vance of the Northern District of Alabama announced.
According to evidence introduced at trial, Evans, a former U.S. Army soldier, and his then-wife, a Department of Defense employee, were residing in Germany when they were asked to take temporary custody of a five-year-old child whose parents were deployed to Iraq with the U.S. Army. Evans sexually abused the child on multiple occasions during the 18 months that the child lived with him from May 2007 to December 2008.
Trial Attorney Austin M. Berry of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Jacquelyn Hutzell of the Northern District of Alabama are prosecuting the case. U.S. Army Criminal Investigations Division and the FBI’s Birmingham, Alabama, Division investigated the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and 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.
U.S. Attorney Vance says State of Alabama and ALEA Receive Money from Department of Transportation and are Subject to Title VI Nondiscrimination ProhibitionRead the Press Release
Following widespread closures and reduction in services at driver license offices across Alabama, the U.S. Department of Transportation announced today that it is investigating whether these actions by the State and the Alabama Law Enforcement Agency (ALEA) violate Title VI of the Civil Rights Act of 1964, which prohibits discrimination on the basis of race, color or national origin in programs and activities receiving federal assistance, said Northern District of Alabama U.S. Attorney Joyce White Vance.
DOT has sent a letter to the state informing officials that it is opening a Title VI investigation following the DMV closures.
The State of Alabama and the Alabama Law Enforcement Agency, in particular, receive substantial federal assistance from the Department of Transportation and, therefore, are subject to Title VI's nondiscrimination prohibition, Vance said.
As this is an investigation conducted by the Department of Transportation, any inquiries about the matter should be directed to that department, she said.
North Alabama U.S. Attorney’s Office Collects $2.4 million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2015Read the Press Release
BIRMINGHAM -- U.S. Attorney Joyce White Vance announced today that the Northern District of Alabama office collected $2.4 million in criminal and civil actions in Fiscal Year 2015. Of this amount, $1.9 million was collected in criminal actions and $483,146 in civil actions.
Additionally, the north Alabama office worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $36.7 million in cases pursued jointly with these offices. Those joint cases included a $13 million settlement with the for-profit education company, Education Affiliates, on allegations of fraud against the U.S. Department of Education.
Attorney General Loretta E. Lynch announced today that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2015. That amount represents more than seven and a half times the approximately $2.93 billion that the Justice Department appropriated for the 93 U.S. Attorneys’ offices and the main litigating divisions for the 2015 fiscal year.
“The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources and protecting the American people from exploitation and abuse,” said Attorney General Lynch. “The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”
"My office is committed to the primary goal of seeking justice and, to that end, we work every day to put criminals behind bars and ensure that money taken through wrongful action is returned to the federal government and the American taxpayer,” Vance said. “The $2.4 million our office recovered independently this past year, plus the $36.7 million we recovered working collaboratively with other offices, is more than three times the budget of this office," she said.
Among the civil collections made independently by the U.S. Attorney’s Office for north Alabama was $123,036 from Maurice Gant and the Center for Hearing in Huntsville, and $300,000 from Generics Bidco, a Huntsville pharmaceutical distribution facility. The Center for Hearing paid to settle allegations that it made a series of false claims to the government arising from the provision of audiology services to TVA employees and retirees. Generics Bidco paid penalties to settle allegations that it failed to maintain complete and accurate records and inventories of controlled substances.
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 to 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, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office for the Northern District of Alabama, working with partner agencies and divisions, collected $1.4 million in asset forfeiture actions in FY 2015. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Former Huntsville, Alabama, Police Officer Sentenced for Excessive Use of Force and Obstruction of JusticeRead the Press Release
Former Huntsville, Alabama, Police Officer Brett Russell, 48, was sentenced today to 18 months in prison by U.S. District Court Judge Abdul K. Kallon of the Northern District of Alabama for violating the civil rights of a Huntsville man.
On July 30, 2015, a federal jury in Huntsville convicted Russell of deprivation of rights under color of law for assaulting and injuring G.H., a detainee in his custody, as well as obstruction of justice for filing a false police report regarding this incident. According to evidence presented at trial, on Dec. 23, 2011, G.H. was detained in the rear of a police vehicle parked in a hotel parking lot. After initially uttering profanity and kicking a rear window, G.H. had since been sitting handcuffed, compliant and non-resisting for approximately 30 minutes. As officers attempted to remove G.H. from the vehicle to place shackles on him, Russell yanked G.H. from the vehicle. While G.H. was lying handcuffed on the ground, Russell repeatedly punched and kneed G.H. Other officers placed leg shackles on G.H. and Russell transported G.H. to the Madison County Jail. When the jail refused to accept G.H. because of his injuries, Russell transported G.H. to the Huntsville Hospital. Subsequently, Russell wrote and submitted a false incident report claiming that G.H. tried to kick and head butt the officers. Further, Russell omitted from the false report any reference to the fact that he had used force on G.H.
“Law enforcement officers who abuse their power to willfully subject those in their custody to violence and pain will be held accountable,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Justice Department will continue to vigorously prosecute those who cross the line to engage in such acts of criminal misconduct.”
“The defendant’s abusive and dishonorable behavior is being punished and an errant officer brought to justice,” said U.S. Attorney Joyce White Vance of the Northern District of Alabama. “I thank the FBI and the Civil Rights Division for their work on this case.”
This case was investigated by the FBI’s Florence Resident Agency. It was prosecuted by Trial Attorney Carroll McCabe of the Civil Rights Division and Assistant U.S. Attorneys Daniel Fortune and Xavier O. Carter Sr. of the Northern District of Alabama.
Former Huntsville Police Officer Sentenced for Excessive Use of Force and Obstruction of JusticeRead the Press Release
BIRMINGHAM – U.S. District Court Judge Abdul K. Kallon today sentenced former Huntsville Police Officer Brett Russell, 48, to 18 months in prison for violating the civil rights of a Huntsville man.
On July 30, 2015, a federal jury in Huntsville convicted Russell of deprivation of rights under color of law for assaulting and injuring G.H., a detainee in Russell’s custody, as well as obstruction of justice for filing a false police report regarding this incident. According to evidence presented at trial, on Dec. 23, 2011, G.H. was detained in the rear of a police vehicle parked in a hotel parking lot. After initially uttering profanity and kicking a rear window, G.H. had since been sitting handcuffed, compliant and non-resisting for approximately 30 minutes. As officers attempted to remove G.H. from the vehicle to place shackles on him, Russell yanked G.H. from the vehicle. While G.H. was lying handcuffed on the ground, Russell repeatedly punched and kneed G.H. Other officers placed leg shackles on G.H. and Russell transported G.H. to the Madison County Jail. When the jail refused to accept G.H. because of his injuries, Russell transported G.H. to the Huntsville Hospital. Subsequently, Russell wrote and submitted a false incident report claiming that G.H. tried to kick and head butt the officers. Further, Russell omitted from the false report any reference to the fact that he had used force on G.H.
“The defendant’s abusive and dishonorable behavior is being punished and an errant officer brought to justice,” said Northern District of Alabama U.S. Attorney Joyce White Vance. “I thank the FBI and the Civil Rights Division for their work on this case.”
“Law enforcement officers who abuse their power to willfully subject those in their custody to violence and pain will be held accountable,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Justice Department will continue to vigorously prosecute those who cross the line to engage in such acts of criminal misconduct.”
The FBI’s Florence Resident Agency investigated the case. Assistant U.S. Attorneys Daniel Fortune and Xavier O. Carter Sr., and Trial Attorney Carroll McCabe of the Civil Rights Division prosecuted the case.
Madison Woman Sentenced to 18 Months in Prison for Fraudulent Income Tax Refund SchemeRead the Press Release
BIRMINGHAM -- A federal judge today sentenced a Madison woman to 18 months in prison for a scheme to obtain fraudulent tax refunds, including one for $558,857, announced U.S. Attorney Joyce White Vance, IRS Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot and FBI Special Agent in Charge Roger C. Stanton.
U.S. District Judge R. David Proctor sentenced ANGELIQUE B. HARRIS, 49, on one count each of theft of government property and money laundering as part of the tax-refund scheme. Harris pleaded guilty to the charges in July. She must pay $658,978 in restitution to the IRS and serve three years of supervised release after completing her prison sentence. Through a related civil action, Harris already has forfeited a 2013 Lexus ES350 luxury automobile worth about $45,000 that she bought with some of the criminal proceeds.
Harris, with the aid of others who were not named in the 2014 indictment against her, stole U.S. Treasury refunds between February 2013 and February 2014, according to her guilty plea. She also admitted to money laundering for using proceeds of a fraudulent October 2013 federal income tax refund of $558,857 to purchase the luxury Lexus from a Huntsville dealership. The IRS paid the refund on a tax return fraudulently filed in the name of a couple, identified in court documents as "P. and A.O." The refund was deposited into an account Harris opened at a Huntsville bank.
The IRS and FBI investigated the case, which Assistant U.S. Attorney Russell E. Penfield prosecuted.
Birmingham Man Gets 22 Years in Federal Prison for Armed Pharmacy RobberiesRead the Press Release
BIRMINGHAM -- A federal judge today sentenced a Birmingham man to nearly 22 years in prison for two armed robberies of pharmacies in 2014, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Roger C. Stanton.
TOMMY LEON STEWART, 29, pleaded guilty in April to robbing a CVS Pharmacy on Center Point Parkway in Birmingham on Oct. 21, 2014, and a CVS Pharmacy on Highway 75 in Pinson on Oct. 29, 2014. Stewart also pleaded guilty to brandishing a gun during the Pinson robbery. U.S. District Judge Karon O. Bowdre sentenced Stewart to 14 years and 10 months in prison on the robbery counts and to seven years in prison on the gun count, which must be served consecutively to the robbery sentence.
The judge also ordered Stewart to pay $3,043 in restitution to the Pinson pharmacy and $8,300 to the Center Point pharmacy,
According to Stewart’s plea agreement with the government, he entered both CVS stores wearing a fake mustache and beard and demanded money and narcotics at gunpoint. In both robberies, he placed the stolen money and narcotics in a silver bag and crawled through the customer drive-through window to escape.
While climbing out the window at the Pinson pharmacy, Stewart fell, dropping his wallet from his jacket pocket, according to the plea agreement. The wallet contained his identification and a fingerprint lifted from the window glass matched a known print of Stewart’s.
Stewart has seven first-degree robbery cases pending in Jefferson County Circuit Court for other charged pharmacy robberies.
The FBI investigated the case, which Assistant U.S. Attorney John B. Felton prosecuted.
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Irondale Man Gets Seven Years in Federal Prison for Identity Theft and Stealing $1.7 Million in U.S. Treasury ChecksRead the Press Release
BIRMINGHAM – A federal judge today sentenced an Irondale man to seven years in prison for identity theft and stealing about $1.7 million in U.S. Treasury checks, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton and Internal Revenue Service Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot.
CRAIG MONTRAIL EATMON, 47, pleaded guilty late last year to one count each of theft of government funds and aggravated identity theft. U.S. District Judge Karon O. Bowdre sentenced Eatmon to five years in prison for the theft of treasury checks and two years for the identity theft. The sentence for aggravated identity theft must be served after completion of any other sentence imposed in the case. The judge also ordered Eatmon to pay $1.02 million in restitution to the U.S. Treasury, and to forfeit $442,127 to the government as proceeds of illegal activity.
“Mr. Eatmon deposited 44 fraudulent or stolen U.S. Treasury checks in his bank account within less than a year to steal more than $1 million from the government and delay rightful tax returns to legitimate tax payers,” Vance said. “He also stole an individual’s identity and created a bank account in the victim’s name so he could deposit a $151,000 stolen tax-refund check and access the money. The FBI, IRS-CI and the U.S. Attorney’s Office have shut off his criminal activity and, today, the prison door swings shut on Mr. Eatmon for a long time.”
“The FBI will continue to work cooperatively to investigate stolen identity tax refund fraud,” Stanton said. “These crimes not only victimize law-abiding individuals, but all honest U.S. taxpayers who ultimately foot the bill for this stolen revenue.”
“Craig Eatmon perpetrated a scheme that was fueled by greed, deceit, dishonesty and theft,” Hyman-Pillot said. “He made a profit at the expense of the United States Treasury and other taxpayers. However, it didn’t pay dividends. The penalty for his deception and theft is imprisonment.”
Eatmon has two prior convictions in federal court in the Northern District of Alabama for bank fraud, unauthorized use of an access device and fraud with identification documents. He also pleaded guilty to conspiracy to possess with intent to distribute cocaine in a second case before Judge Bowdre. She sentenced him today to five years in prison on that case, with the sentence to be served at the same time as his sentence for theft of government funds.
According to documents filed with the court, Eatmon conducted the government funds and identity thefts as follows:
He was the sole signatory on accounts for Executive Investors Group at Wells Fargo Bank. Between May 2011 and July 2012, about $1.7 million in U.S. Treasury checks were deposited into the EIG accounts. Wells Fargo seized $633,573 of that money in October 2011 and returned it to the treasury. The deposited checks were a combination of tax refund checks issued as a result of false federal income tax returns that had been filed, or legitimate but stolen refund checks.
Eatmon also sold two treasury checks to an undercover FBI agent. One of the checks was for $9,001 and the other for $11,330 and both were made payable to individuals other than Eatmon.
Eatmon obtained a $151,000 tax refund check made payable to a South Florida resident. He enlisted the help of a Wells Fargo employee to open an account in the name of an existing bank customer whose last name matched the name on the check. Eatmon had the check deposited into the new account and, after it cleared, either he or someone acting on his behalf, withdrew $87,240 from the account.
The FBI, IRS-CI and the Etowah County Drug Enforcement Unit investigated the cases, which Assistant U.S. Attorneys Davis Barlow and John B. Felton prosecuted.
Father and Daughter Tax Return Preparers Sentenced for FraudRead the Press Release
BIRMINGHAM – A federal judge today sentenced a father and daughter who worked together in a Birmingham tax return preparation business for conspiring to defraud the government of more than $490,000 by falsely claiming education tax credits on clients’ tax forms, announced U.S. Attorney Joyce White Vance and Internal Revenue Service Criminal Investigation Special Agent in Charge Veronica Hyman-Pillott.
U.S. District Judge Karon O. Bowdre sentenced DEMETRIUS YOUNG, 52, and DEONDRA YOUNG, 30, both of Birmingham, for the tax fraud conspiracy and ordered them to pay $490,328 in restitution to the IRS. Judge Bowdre sentenced Demetrius Young to two years in prison and his daughter to three years’ probation, to include six months in home detention.
“These defendants committed a serious crime by taking advantage of tax laws and filing hundreds of false tax returns,” Vance said. “It is especially troubling when such fraud is committed by professionals who were trusted by their clients to submit accurate returns to the IRS. The U.S. Attorney’s Office and the IRS continually investigate tax fraud and we will hold perpetrators accountable.”
“Individuals who participate in refund schemes are stealing directly from the United States Treasury,” Hyman-Pillot said. “Internal Revenue Service Criminal Investigation has a zero-tolerance policy for refund fraud. Today’s sentence should serve as a warning to those who are considering similar criminal activities. Let it be known that we will investigate and prosecute anyone who commits refund fraud and steals from the government.”
Demetrius Young was a tax return preparer and owner of Tax of America in Birmingham. His daughter worked as a tax preparer for Tax of America and she and her father planned that she would eventually own and run the business, according to the Youngs’ plea agreements with the government.
According to the plea agreements and other court documents, Demetrius and Deondra Young both prepared fraudulent tax returns for clients and worked in managerial positions overseeing the preparation of fraudulent tax returns by other preparers at Tax of America during the 2010 and 2011 tax years.
The American Opportunity and Lifetime Learning Credits, or “education credit,” provides a tax credit for qualified tuition and related expenses paid during a tax year. The Youngs prepared fraudulent returns by adding false education credits to clients’ tax returns, without the consent or knowledge of the clients, according to court documents. They also approved returns prepared by others at Tax of America that included false education credits.
IRS-CI investigated the case, which Assistant U.S. Attorney Robin Beardsley Mark prosecuted.
Birmingham Business Leaders, U.S. Attorney Discuss Prisoner Reentry and Ban-the-BoxRead the Press Release
Birmingham Business Alliance discusses importance of employment opportunity in reducing crime and recidivism.
BIRMINGHAM – U.S. Attorney Joyce White Vance met today with a group of Birmingham Business Alliance investors to discuss the importance of employment on the successful return to society of people leaving prison. Ex-offenders who find employment are half as likely to reoffend as those who struggle to find employment.
Many employers require job applicants to disclose conviction and arrest history on the initial job application. Often, the applications of those who disclose an offense history are immediately removed from further consideration for employment. The campaign known as, “Ban the Box,” encourages employers to delay consideration of offense history within the hiring process. More than 100 cities and counties and 19 states have joined companies like Walmart, Target, Home Depot, and Koch Industries to ban the box. Earlier this month, President Obama called upon the Office of Personnel Management to ban the box within federal employment applications.
“People who are returning to our communities after paying their debt to society in prison must have an opportunity to become law-abiding, self-supporting, tax-paying citizens,” Vance said. "No one’s fate should be decided by the worst moment of their life. Returning citizens must have an opportunity for redemption,” she said. “Employment is the key to transforming ex-offenders into contributing members of the community”.
Policy-makers and hiring officials from the State of Georgia, Johns Hopkins Medicine, and the Council of State Governments joined local policy-makers and employers to provide information on how best to use conviction history within the hiring process. The State of Georgia and the Washington, D.C.-based Johns Hopkins Medicine have both banned the box within the hiring process. The Council of State Governments provides technical assistance to the State of Alabama with its reforms of prison and community supervision agencies.
“We are pleased to have the opportunity to host this discussion,” said Mark Crosswhite, Alabama Power CEO. “It’s important that members of Alabama’s business community consider issues of employment and qualification. There may not be one right answer for everyone, but it just makes good business sense for us to explore the options and the impacts together.”
Johnny Johns, chairman, president and CEO at Protective Life Corporation said, “We as a society pay a terrible price for the unbroken cycles of crime and recidivism. It just makes good sense to do what we can to help those coming out of prison change their lives, get a second chance and become productive, law-abiding citizens.”
“Workforce is an important economic development issue and finding ways to connect a skilled workforce to companies is critical,” said Brian Hilson, president and CEO of the Birmingham Business Alliance. “This is the beginning of an important discussion and an opportunity for the business community to learn about this issue. We are glad to be a part of this event today.”
Representative Mike Jones, chairman of the Alabama House Judiciary Committee said, “Data clearly states that employment is key in breaking the cycle of criminal recidivism. Not only does employment reduce crime, it builds stronger communities and strengthens families. Rural and urban communities, alike, benefit from a strong labor market where no one is lacking the opportunity to improve their life or support their family”.
State Senator Cam Ward, chairman of Alabama’s Prison Reform Taskforce stated, "The ability to find a job and live an independent, productive life greatly reduces the chances that someone will return to our over-crowded corrections system. I'm glad to see the business community taking such a prominent role in this discussion."
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VA Hospital Union Official Sentenced to Prison for Stealing from UnionRead the Press Release
BIRMINGHAM – A federal judge on Tuesday sentenced the former president of the federal employees union at Birmingham's Veterans Affairs Hospital to six months in prison, plus six months home detention for embezzling more than $92,000 from the local chapter. U.S. Attorney Joyce White Vance, U.S. Department of Veterans Affairs, Office of Inspector General, Special Agent in Charge Monty Stokes, and U.S. Department of Labor, Office of Labor-Management Standards, Investigator Hollis Lindley Jr. announced the sentence.
STEPHANIE HICKS, 44, of Birmingham, pleaded guilty in June to bank fraud and forgery. U.S. District Judge Karon O. Bowdre ordered Hicks to pay $92,000 in restitution to the American Federation of Government Employees, Local 2207, AFL-CIO, as part of her sentence. Hicks must report to prison Jan. 12.
Hicks was elected president of Local 2207 at the Birmingham VA Hospital in July 2007 and served until July 2013 when members elected a new president. The local collects dues biweekly from its more than 440 members. During Hicks' tenure, the local maintained the money in two bank accounts -- a general operating account and a legal fund account, first at Wachovia Bank and, following a merger, at Wells Fargo Bank, according to the indictment and Hick’s plea agreement with the government.
From at least Jan. 1, 2008 until July 26, 2013, Hicks schemed to defraud the banks, using her position as Local 2207 president to conduct unauthorized transactions taking money from the union's accounts to use for her personal benefit, according to the court records. Those transactions included writing checks to herself for travel that did not take place, forging the name of other Local 2207 officers and members on checks she wrote to herself, and making unauthorized debit card purchases and cash withdrawals, according to the records.
To conceal her fraud, Hicks did not maintain records of the financial transactions, as required by federal law and Local 2207's constitution and bylaws, nor did she seek approval for the expenditures.
Veterans Affairs, OIG, and the Department of Labor, OLMS and OIG, investigated the case, which Assistant U.S. Attorney Xavier O. Carter prosecuted.
Tuscaloosa Mail Carrier Pleads Guilty to Accepting Bribes to Deliver Drug PackagesRead the Press Release
BIRMINGHAM – A Tuscaloosa postal carrier pleaded guilty Monday in federal court to accepting bribes to deliver packages of marijuana, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton and U.S. Postal Inspection Service Inspector in Charge Adrian Gonzalez.
JOCELIN LATRICE BETTS, 28, of Tuscaloosa, entered her guilty plea Monday before U.S. District Judge L. Scott Coogler to one count each of conspiracy to distribute marijuana and being a public official who accepted a bribe to deliver the mail. No sentencing date has been set.
According to her plea agreement with the government, Betts provided two Northport addresses in June and July to an FBI informant for use in delivering packages containing marijuana. Betts retrieved the packages from those addresses and accepted at least $300 for delivering two of them to the informant or a drug dealer who had introduced the source to Betts.
Betts faces a maximum sentence of five years in prison and a $1 million fine on the marijuana distribution charge and a maximum sentence of two years in prison and a $250,000 fine for the bribery of a public official charge.
The U.S. Postal Inspection Service, FBI and the Tuscaloosa Police Department investigated the case, which Assistant U.S. Attorney John B. Felton is prosecuting.
Jasper Pain Clinic Physician Pleads Guilty to Illegally Dispensing NarcoticsRead the Press Release
BIRMINGHAM -- A Vestavia Hills physician and owner of a Jasper neurology and pain clinic pleaded guilty today in federal court to illegal drug distribution charges for dispensing narcotic painkillers without a legitimate medical reason, announced U.S. Attorney Joyce White Vance and Drug Enforcement Administration Assistant Special Agent in Charge Clay A. Morris.
Dr. MUHAMMAD WASIM ALI, 51, pleaded guilty before U.S. District Judge L. Scott Coogler to 10 counts of unlawfully distributing controlled substances "outside the scope of professional practice and not for a legitimate medical purpose" to three people working undercover with law enforcement. Ali owns and practiced at the Walker Rural Health Care/Jasper Neurological Care clinic. Following his March arrest, Ali voluntarily surrendered his DEA Controlled Substances Registration, which enabled him to write prescriptions. Ali’s sentencing date has not been set.
According to the charges and Ali’s plea, he dispensed 1,100 oxycodone pills to three undercover officers between August 2014 and November 2014 without conducting acceptable medical examinations or requesting and/or reviewing medical records. Ali’s medical files for the three individuals listed multiple falsified examinations and multiple falsified and baseless diagnoses, according to the plea agreement.
“Proper use of prescribed opioids for pain management is an important part of the practice of medicine, but abuse of these drugs is deadly,” Vance said. “Alabama leads the nation in the number of per capita prescriptions for opioid painkillers, and prescription-drug abusers often shift to heroin abuse. This tragic trend contributes to our epidemic overdose death rates,” she said. “My office and our law enforcement partners are working to ensure that doctors don’t turn into illegal drug dealers.”
“The use, abuse and distribution of opioid-based controlled pharmaceutical drugs are at epidemic proportions in Alabama and across the United States,” Morris said. “Unfortunately, a small number of physicians have abandoned their Hippocratic oath and responsibilities to their patients and communities. Blinded by the allure of greed, deadly and highly addictive pharmaceutical drugs were distributed without regard. The abuse of opioid-based drugs can, and often does have deadly consequences,” he said. “The DEA is committed to protecting our communities from the destruction that comes from drug abuse. Today's court actions should send a clear message to anyone who illegally distributes drugs that law enforcement will work tirelessly in the pursuit of justice and to protect our most important resources -- our communities, children and families.”
Ali was scheduled to go to trial today on a 36-count indictment that included the 10 counts of dispensing controlled substances without a legitimate medical purpose to undercover officers, 26 similar counts of dispensing controlled substances without a legitimate medical purpose to patients, plus two counts of illegally possessing with intent to distribute controlled substances, mostly opioid painkillers. He reached a plea agreement with the U.S. Attorney’s Office on Friday.
As part of that agreement, Ali pleaded guilty to the 10 counts of prescribing oxycodone without a legitimate medical purpose, consented to forfeit $2,450 to the government as proceeds of that illegal activity, and to pay a fine of $85,000. In exchange, the government agreed to dismiss the remaining counts in the indictment. Further, in the plea agreement, the parties agree that Dr. Ali should be sentenced to 30 months in prison. Judge Coogler accepted Ali’s guilty plea today, but reserved his decision on whether to accept the 30-month prison sentence until Ali’s sentencing hearing. The agreement between Ali and the government is a binding plea agreement, so either party may withdraw from it if the court does not accept the stipulated sentence.
Ali was one of three Birmingham-area physicians charged this spring as part of DEA's Operation Pilluted in Alabama, Arkansas, Louisiana and Mississippi, which focused on reducing trafficking and abuse of pharmaceuticals.
Last month, U.S. District Judge Virginia Emerson Hopkins sentenced a Birmingham physician, PETER ALAN LODEWICK, 73, to four years’ probation for illegally supplying controlled substances. She also prohibited him from ever seeking reinstatement of his DEA registration. Lodewick, a physician at Lodewick Diabetes Center on Montclair Road, pleaded guilty to one count of assisting someone else in acquiring the narcotic painkiller, oxycodone, by "misrepresentation, fraud, forgery, deception, and subterfuge."
In September, Judge Hopkins sentenced ERNEST ALBERT CLAYBON, 72, a physician in Midfield, for distributing methadone without a legitimate medical purpose. She sentenced him to four years' probation, fined him $20,000 and ordered him to surrender his medical license and his DEA registration.
The DEA, Internal Revenue Service, Criminal Investigation, and the Alabama Law Enforcement Agency investigated the case, which Assistant U.S. Attorneys Chinelo Diké-Minor, Robin Beardsley Mark and Elizabeth A. Holt are prosecuting.
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Tuscaloosa Man Gets 10 Years in Prison for Coercing and Inducing Child to Engage in Sexual ActivityRead the Press Release
BIRMINGHAM -- A federal judge today sentenced a Tuscaloosa man to 10 years in prison for sending cell phone texts to a minor child over nearly two years to coerce or induce her to engage in sexual activity, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton and Tuscaloosa County Sheriff Ron Abernathy.
U.S. District Judge Virginia Emerson Hopkins sentenced EARL WAYNE BABIN, 49, on one count of coercion and enticement. Babin pleaded guilty to the charge in July. As part of a plea agreement, government prosecutors recommended a 10-year prison sentence. Babin already is in custody. Once he completes his prison sentence, he must remain on supervised release for 15 years, according to the judge's order.
Babin admitted in his guilty plea that he had used hidden cameras and provided provocative lingerie for the child, then sent text messages urging her to try on the inappropriate undergarments so he could produce visual images. He conducted the exploitation between July 2012 and March 2014, when the child was less than 16 years old.
Babin admitted that he engaged in illegal sexual activity with the child and produced images of child pornography that involved her, according court documents.
The FBI and the Tuscaloosa County Sheriff's Office investigated the case, which Assistant U.S. Attorney Jacquelyn M. Hutzell prosecuted.
Texas Man Indicted for Distributing Methamphetamine in Greene CountyRead the Press Release
BIRMINGHAM -- A federal grand jury on Tuesday indicted a Texas man in connection with the illegal distribution of methamphetamine in Greene County, announced U.S. Attorney Joyce White Vance and Drug Enforcement Administration Assistant Special Agent in Charge Clay A. Morris.
A two-count indictment filed in U.S. District Court charges ISACC PINEDO, 22, with conspiracy to distribute 500 grams or more of methamphetamine in Greene County between May 2015 and June 24, 2015. It also charges Pinedo with possessing with intent to distribute 500 grams or more of the illegal drug in Greene County on June 24.
The maximum penalty for both the conspiracy and the possession with intent to distribute charge is life in prison and a $10 million fine.
DEA and the 17th Judicial Circuit Drug Task Force investigated the case, which Assistant U.S. Attorney John B. Felton is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Birmingham Physician Sentenced for Illegally Supplying Opioid PainkillersRead the Press Release
BIRMINGHAM -- A Birmingham physician charged in May with illegally supplying controlled substances must serve four years' probation and never seek reinstatement of the license that allowed him to write prescriptions, announced U.S. Attorney Joyce White Vance, DEA Assistant Special Agent in Charge Clay A. Morris and Alabama Law Enforcement Agency Secretary Spencer Collier.
U.S. District Judge Virginia Emerson Hopkins today sentenced PETER ALAN LODEWICK, 73, a physician at Lodewick Diabetes Center on Montclair Road, on one count of assisting someone else in acquiring the narcotic painkiller, oxycodone, by "misrepresentation, fraud, forgery, deception, and subterfuge." The judge sentenced Lodewick in accordance with a binding plea agreement he entered with the government. Lodewick had voluntarily surrendered his Drug Enforcement Agency Controlled Substances Registration in January.
Lodewick was one of three Birmingham-area physicians charged this spring as part of DEA's Operation Pilluted in Alabama, Arkansas, Louisiana and Mississippi, which focused on reducing trafficking and abuse of pharmaceuticals. ERNEST ALBERT CLAYTON, 72, a physician in Midfield, was sentenced in September for distributing methadone without a legitimate medical purpose. He received four years' probation, a $20,000 fine and was ordered to surrender his medical license and his DEA registration.
The third doctor, MUHAMMAD WASIM ALI, 51, who owns a pain clinic in Jasper, is scheduled for trial Nov. 9 in federal court in Tuscaloosa on charges of illegally distributing narcotic painkillers for other than legitimate medical purposes.
Lodewick admitted in his guilty plea that he issued prescriptions for large amounts of opiates, between May 2013 and December 2014, to two of his patients, even after learning they were pharmacy-shopping with his prescriptions. He discovered the pharmacy-shopping in May 2013 and wrote the two patients letters terminating their physician-patient relationship, but continued to write them opiate prescriptions, according court documents.
DEA, ALEA and Internal Revenue Service, Criminal Investigation, investigated the cases. Assistant U.S. Attorney E. Wilson Hunter is prosecuted Lodewick's case.
Law Enforcement Rounds up Members of Birmingham-based Heroin and Cocaine ConspiracyRead the Press Release
BIRMINGHAM -- Federal and local law enforcement today arrested 16 of 24 defendants indicted in September as part of a multi-million dollar conspiracy to distribute heroin and cocaine, mainly within Jefferson County. U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton, Internal Revenue Service Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot and Jefferson County Sheriff Mike Hale announced the charges and arrests.
Today's arrests bring to 23 the number of people either arrested or served with notice to appear as a result of the nearly three-year Organized Crime Drug Enforcement Task Force investigation into the Birmingham-based drug-trafficking conspiracy.
The man accused as the leader of the organization, PATRICK DEWAYNE “Pat” HALL, 37, and his first lieutenant, LOVODAS DEANGELO “Bo,”“BoMo,” “Dee Dee” BLAKE, 26, already were in custody on federal charges related to a large seizure of cocaine on Aug. 1. An FBI SWAT team arrested both men in the early morning of Aug. 2 after the duo hid for several hours in the attic of a North Birmingham home, according to arrest records. The pair ran to the house after leading police on a high-speed chase through northeast Birmingham, then ditching their Chevrolet Tahoe in a front yard. FBI agents recovered more than 10 kilograms of cocaine and almost $20,000 from the vehicle.
Two other defendants already were in custody on state drug-trafficking charges. They are ROBERT LYNN “Trap” THOMAS JR., 26, and CANDIDA ARROYO LEIMAKAMAE OCASIO, 35.
Ocasio lives in Beaumont, Texas, but Hall, Blake, Thomas, and more than half of the 24 defendants live in Birmingham. Among those charged are two men who are featured performers in the North Birmingham-based and regionally known rap group, Trap Team Entertainment. They are JESSTIFUR JAHALIA FERRARI “Leer Jet,” “Leer,” “Jahleer,” “Jet” HURST, 29, and DAVID WAYNE “Northside Weezy” MCDANIEL, 24.
"Beginning at 6 a.m. today, a group of federal and local law enforcement officers dismantled a drug-trafficking operation charged with dumping heroin and cocaine onto the streets of our city. The indictment of 24 individuals for either drug trafficking or laundering drug money represents years of dedicated work by the FBI, Jefferson County Sheriff's Office, IRS-CI, and prosecutors in my office," Vance said. "Solving the problems of crime and addiction related to those drugs requires more than enforcement, though. It requires community awareness of the problems of abuse and addiction, which often start with prescription pills, and a commitment to address those problems by talking to our children about the dangers, safely disposing of unused and unneeded medications, and removing the stigma of addiction so that treatment is more readily sought."
"As a direct result of this enforcement action, the supply network for cocaine and heroin in Birmingham and Jefferson County has been severely disrupted," Stanton said. "I applaud the hard work and teamwork exhibited by my agents, along with our partners at IRS-CI and the Jefferson County Sheriff’s Office, who once again demonstrated the importance of combining the strengths, resources and expertise of federal and local agencies to fight these drug-trafficking networks.”
“IRS Criminal Investigation is proud to be an integral part of this multi-agency OCDETF investigation," Hyman-Pillot said. “It is our goal as financial investigators to assist our law enforcement partners in dismantling drug-trafficking organizations at every level. This is a great illustration of the positive impact law enforcement has when local, state and federal agencies work together.”
"As we all are acutely aware, heroin has returned to our area and has taken lives with a vengeance and without regard to who or where," Hale said. "It is the Satan of the drug trade that devastates families in every community. We can't bring those loved-ones back and we can't restore what has been lost. We can, however, ensure that these dealers responsible for trafficking this killer drug are shut down and brought to justice," the sheriff said. "If they believe they can operate unabated, then I hope this sends them the clear message that we are united in this fight and our resolve is unwavering."
Of the 24 people named in the indictment, 21 face the charge of conspiracy to distribute heroin, cocaine and crack cocaine between January 2012 and August 2015. The indictment charges two defendants with money laundering only, and one defendant with money laundering and one count of using a telephone to facilitate a drug-trafficking crime. The indictment contains 62 of the telephone counts, which variously include 21 of the 24 defendants. The indictment also includes four heroin and four cocaine distribution counts involving 10 of the defendants.
The indictment seeks to have the defendants forfeit $10 million as proceeds of the charged drug-trafficking crimes. It also seeks forfeiture of property including a 2013 Mercedes roadster, valued at over $130,000, a 2013 Harley Davidson motorcycle, and five pieces of real estate, including two Birmingham houses that the indictment charges were the subjects of money laundering transactions.
Indicted in connection with the drug conspiracy, along with Patrick Hall, Blake, Thomas, Jesstifur Hurst, David McDaniel and Ocasio are: ERIC DEMOND “E,” “E Sosa,” “Sosa” HALL, 39, ROYCE THERMON “Rossie,” “Scoe” JOHNSON, 30, TEDDY TONELL “Fresh” DAVIS, 33, BRANDON DION LEWIS, 30, JAMES MARION ROBINSON III, 45, RODRIQUS TYRONE “Dreek” STURDIVANT, 25, DEANGELA KAY “Dee Kay” MCDANIEL, 42, ISRAEL BRAVO “Migo” OLASOAGAR, 37, LENA KENYA IRVINE, 30, and GERLINE A. JONES, 70, all of Birmingham; JESSE TYRONE “Bat,” “Batman” HURST, 58, COREY LIONEL “Mac” PITTS, 24, and PATRICIA ANN NELSON, 54, all of Bessemer; DEANDRE JADARIUS “Dre,” “Profit” HALL, 21, of Hoover, ANTHONY DEJUAN WILLIAMS, 45, of Pinson, JUSTICE MARTINIQUE HOLDEN, 20, of Huntsville, SONJA DENISE “Momma” MITCHELL, 55, of McCalla, and a DEFENDANT KNOWN ONLY AS “Tweety.”
Patrick and Eric Hall are brothers and Deandre Hall is their cousin. Jesstifur Hurst is Jesse Hurst's son. Deangela McDaniel and David McDaniel are mother and son.
The FBI, working with the IRS, the sheriff's offices of Jefferson, Shelby and Tuscaloosa counties, and the Birmingham, Hueytown, Hoover, Tuscaloosa and Vestavia Hills police departments, assembled 18 teams that fanned out across the Birmingham metro area early today and arrested the following defendants:
Jesstifur Hurst, David McDaniel, Eric Hall, Johnson, Davis, Lewis, Robinson, Sturdivant, Deangela McDaniel, Olasoagar, Jesse Hurst, Pitts, Deandre Hall, Williams, Holden, and Mitchell.
Authorities still are seeking the defendant known as Tweety. Tweety is a Houston, Texas, supplier.
Charged with conspiracy to distribute heroin, cocaine and crack cocaine are Patrick, Eric and Deandre Hall, Blake, Jesstifur and Jesse Hurst, David and Deangela McDaniel, Thomas, Johnson, Davis, Lewis, Robinson, Pitts, Sturdivant, Williams, Holden, Mitchell, Ocasio, “Tweety” and Olasoagar.
The indictment separates defendants by the amount and type of drug attributable to them through their actions in the drug-trafficking conspiracy. The defendants, type and amount of illegally trafficked drug attributed to them, and the maximum prison sentence for that crime are as follows:
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Patrick, Eric and Deandre Hall, Blake, Jesstifur and Jesse Hurst, David McDaniel, Thomas, Johnson, Lewis and Pitts, 1,000 grams or more of heroin, 10 years to life;
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Deangela McDaniel, 100 grams or more of heroin, five to 40 years.
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Patrick, Eric and Deandre Hall, Blake, Jesstifur Hurst, David McDaniel, Davis, Robinson, Sturdivant, Williams, Mitchell, Ocasio, Tweety and Olasoagar, five kilograms or more of cocaine, 10 years to life;
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Lewis, 500 grams or more of cocaine; five to 40 years;
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Patrick Hall, Blake and Jesstifur Hurst, 280 grams or more of crack cocaine; 10 years to life.
Patrick Hall, Blake and Olasoagar also are charged with one count of possessing with intent to distribute five kilograms or more of cocaine. Blake faces an additional count of distributing cocaine.
Jesstifur Hurst is charged with three separate counts of distributing heroin and one count of distributing cocaine. Johnson faces one count of distributing heroin. Jesse Hurst and Eric Hall face one count of distributing heroin, and Mitchell, Ocasio and Tweety face one count of possessing with intent to distribute 500 grams or more of cocaine.
Patrick Hall, Lewis, Irvine, Nelson and Jones are charged with laundering money derived from the drug-trafficking conspiracy. According to the indictment, Patrick Hall conspired with those four co-defendants between January 2012 and August 2015 to buy property titled in their names. The purchases were:
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Harley Davidson FLTRX motorcycle, titled to Lewis;
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2013 Mercedes SL550 roadster, titled to Nelson;
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House at 3909 35th Ave. N, Birmingham, bought in Jones' name;
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House at 356 Killough Drive, Birmingham, bought in Irvine's name.
The maximum penalty for the money laundering charge is 20 years and a fine of $500,000 or twice the value of the property involved in the transaction, whichever is greater.
The FBI, the IRS, the Jefferson County Sheriff’s Office, and other agency members of the FBI’s Safe Streets Task Force investigated the case, which Assistant U.S. Attorneys Gregory R. Dimler and E. Wilson Hunter are prosecuting.
An indictment contains only charges. Defendants are presumed innocent unless and until proven guilty.
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Federal Correctional Officer Pleads Guilty to Accepting Bribes to Bring Contraband into PrisonRead the Press Release
BIRMINGHAM -- A former cook supervisor and correctional officer at Talladega Federal Correctional Institution pleaded guilty Tuesday in federal court to accepting more than $4,000 in bribes to smuggle tobacco and synthetic marijuana into the prison, announced U.S. Attorney Joyce White Vance and U.S. Department of Justice Office of the Inspector General Special Agent in Charge Robert A. Bourbon.
DONALD D. JOHNSON, 25, of Birmingham, entered his plea before U.S. District Judge Abdul K. Kallon to one count of accepting a bribe as a public official. He is scheduled for sentencing Jan. 5.
Federal prosecutors charged Johnson, who entered a plea agreement with the government in September. According to those documents, Johnson was an employee of the U.S. Bureau of Prisons and a public official when he accepted money from inmates to introduce tobacco and K2/Spice, or synthetic marijuana, into the prison.
According to the plea agreement, Johnson attempted to conceal the payments he received from inmates by using prepaid debit cards in other people's names and had money orders mailed to an address not associated with him. After the money orders were mailed, Johnson had other friends cash them for him.
In a June 15, 2015, interview with the DOJ OIG, Johnson admitted that he received two prepaid debit cards worth $3,350 as bribery payments from inmates. Johnson also told the OIG that he received multiple money orders as bribery payments.
The maximum penalty for bribery of a public official is 15 years in prison and a $250,000 fine.
This case was investigated by the DOJ-OIG. It will be prosecuted by Assistant United States Attorney Pat Meadows.
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Huntsville, Tuscaloosa Among Sites for DOJ-Funded Expansion of Intensive Probation Supervision ProgramRead the Press Release
HUNTSVILLE – The Department of Justice has awarded the Alabama Board of Pardons and Paroles $600,000 through a Bureau of Justice Assistance grant to expand the Alabama Certain Enforcement Supervision program to four additional intensive supervision pilot sites across Alabama.
Through the grant, ACES will expand to local Pardons and Paroles offices in Huntsville, Tuscaloosa, Dothan and Andalusia. Those cities, respectively, are in counties that collectively send more than 15 percent of the inmates annually admitted to the Department of Corrections. This funding follows $370,000 from the Department of Justice that established the state’s first four ACES pilot sites early this year.
Within ACES, individuals deemed moderate- to high-risk to reoffend will receive intensive supervision by local Pardons and Paroles officers and will be subject to swift, certain and fair sanctions if they violate the terms and conditions of release. Swift and certain sanction programs are an evidenced-based practice that has been validated to reduce recidivism and improve outcomes for individuals under supervision, while enhancing offenders’ perception that the supervision decisions are fair, consistently applied, and consequences are transparent. Such programs have been proven especially effective at reducing periods of incarceration for technical violations of supervision.
ACES is based upon Hawaii’s Opportunity Probation and Enforcement program. Within three months of its implementation, the HOPE program led to an 83 percent reduction in failed drug tests, 71 percent reduction in missed appointments with probation officers, and a 70 percent reduction in the revocation rate for participating probationers.
“ACES implements the best current evidence-based practices for supervision of ex-offenders," said U.S. Attorney Joyce White Vance. "Programs like ACES that follow the HOPE model have led to lower recidivism rates around the country by not waiting to take action until a probationer becomes a repeat offender. For Alabama to be successful in reducing recidivism and improving public safety, the highest risk ex-offenders within our communities must receive heightened supervision and services so as to improve their likelihood for successful reentry, and additional ACES sites are a step toward that goal,” she said.
"Pardons and Paroles is eager to expand the work it has been doing for the past year in Mobile, Greenville, Montgomery and Decatur, and which it hopes to eventually carry statewide," said Pardons and Paroles Executive Director Phil Bryant. "We hope to see measurable improvement of recidivism rates and decreases in technical violations. Probation and parole officers participating in the ACES pilot sites have gone above and beyond to supervise intensive caseloads in the manner prescribed by ACES, and we sincerely appreciate the cooperation from the judges and local officials who are making the pilots possible."
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Former Non-Profit Health Clinic CFO Sentenced to 28 Months in Prison for Mailing NarcoticsRead the Press Release
BIRMINGHAM -- A federal judge today sentenced the former financial officer for two non-profit health clinics in Alabama to more than two years in prison for mailing narcotics to a co-defendant and the spouse of a federal prosecutor on a separate fraud case, announced U.S. Attorney Joyce White Vance, U.S. Postal Inspector R. Frank Dyer and FBI Special Agent in Charge Roger C. Stanton.
Federal prosecutors recommended a 12-month sentence for TERRI McGUIRE MOLLICA on one count of using the U.S. mail to distribute a controlled substance. Mollica, 48, of Birmingham, pleaded guilty to the charge in July. U.S. District Judge Virginia Emerson Hopkins sentenced Mollica to 28 months in prison, calling her crime "extremely reprehensible."
Mollica had an elaborate scheme to use an out-of-state re-mailing service to send the narcotics without being identified as the sender.
"This sentence from the court sends a strong message that defendants who try to obstruct the prosecution of their own criminal conduct by harassing and threatening prosecutors will face additional time in prison," Vance said.
Mollica pleaded guilty April 27 to a complicated scheme to defraud the government through the two non-profit health clinics where she worked as chief financial officer. She is scheduled for sentencing in that case on Nov. 18. According to court documents, Mollica engaged in more than 200 transactions to enrich herself using a variety of bank accounts and trading accounts, illegally receiving about $1.7 million and laundering about $214,333.
On April 17 and April 21, Mollica mailed the packages that, ultimately, were delivered to the spouse of a prosecutor on her fraud case, and to her co-defendant in that case, who already had pleaded guilty to defrauding the government and a health clinic. The package to Mollica's co-defendant contained a statue of a dog, 76 Valium, 38 Zolpidem (Ambien) and about 100 other pills. The package to the prosecutor's spouse contained a desk clock, 49 Adderall, 41 Ritalin and two prepaid debit cards.
The U.S. Postal Inspection Service and FBI investigated the illegal use of the mail case, which Assistant U.S. Attorneys John B. Felton, Melissa Atwood and Ramona Albin prosecuted.
Bessemer Man Detained at Home for 15 Months, Must Repay $110,295 to Shipping Company for Kickback SchemeRead the Press Release
BIRMINGHAM -- A federal judge last week sentenced a Bessemer man to 15 months of electronically monitored home detention as part of four years' probation for a kickback scheme he ran while working as a freight broker for a Shelby County company, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Roger C. Stanton.
U.S. District Judge Madeline H. Haikala sentenced WILLIAM G. McCULLEY, 31, on one count of wire fraud and ordered him to pay $60,295 in restitution to his former employer, Interstar Transportation Services, plus $50,000 to Auto-Owners Insurance Company, which had paid a related claim from ITS. Judge Haikala also ordered McCulley to forfeit $96,809 to the government as proceeds of illegal activity, and to perform five hours a week of community service during his probation. McCulley pleaded guilty to the wire fraud in June.
ITS is an independent brokerage agency for a Jacksonville, Fla.-based company, Landstar, which operates a fleet of trucks and transportation equipment throughout the United States. McCulley worked as a freight broker for Interstar and was responsible for contracting with various trucking companies across the country.
Between April 2013 and July 2014, McCulley devised a kickback scheme with the owner of an Illinois trucking company, ZDL Express, according to McCulley's guilty plea. To carry out the scheme, ZDL Express inflated its freight costs to Landstar, and McCulley approved the fraudulent charges. McCulley and ZDL's owner split the illegally gained profits after ZDL received payment from Landstar, according to court documents.
McCully committed wire fraud when he faxed Landstar Load Confirmation forms from the ITS corporate office in Shelby County to ZDL Express in Illinois and approved fraudulent charges on the forms, according to his plea.
The FBI investigated the case, which Assistant U.S. Attorney Pat Meadows prosecuted.
Bessemer Man Detained at Home for 15 Months, Must Repay $110,295 to Shipping Company for Kickback SchemeRead the Press Release
BIRMINGHAM -- A federal judge last week sentenced a Bessemer man to 15 months of electronically monitored home detention as part of four years' probation for a kickback scheme he ran while working as a freight broker for a Shelby County company, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Roger C. Stanton.
U.S. District Judge Madeline H. Haikala sentenced WILLIAM G. McCULLEY, 31, on one count of wire fraud and ordered him to pay $60,295 in restitution to his former employer, Interstar Transportation Services, plus $50,000 to Auto-Owners Insurance Company, which had paid a related claim from ITS. Judge Haikala also ordered McCulley to forfeit $96,809 to the government as proceeds of illegal activity, and to perform five hours a week of community service during his probation. McCulley pleaded guilty to the wire fraud in June.
ITS is an independent brokerage agency for a Jacksonville, Fla.-based company, Landstar, which operates a fleet of trucks and transportation equipment throughout the United States. McCulley worked as a freight broker for Interstar and was responsible for contracting with various trucking companies across the country.
Between April 2013 and July 2014, McCulley devised a kickback scheme with the owner of an Illinois trucking company, ZDL Express, according to McCulley's guilty plea. To carry out the scheme, ZDL Express inflated its freight costs to Landstar, and McCulley approved the fraudulent charges. McCulley and ZDL's owner split the illegally gained profits after ZDL received payment from Landstar, according to court documents.
McCully committed wire fraud when he faxed Landstar Load Confirmation forms from the ITS corporate office in Shelby County to ZDL Express in Illinois and approved fraudulent charges on the forms, according to his plea.
The FBI investigated the case, which Assistant U.S. Attorney Pat Meadows prosecuted.
Birmingham Receives $300,000 DOJ Safe Neighborhoods GrantRead the Press Release
Multi-Faceted Approach to Target Violent Gang and Gun Crime
BIRMINGHAM -- The U.S. Department of Justice in September granted the City of Birmingham nearly $300,000 for a program that combines intensified enforcement in high-crime neighborhoods with literacy education and increased supervision and support during probation and parole in a comprehensive approach aimed at reducing gun crime and gang violence, announced U.S. Attorney Joyce White Vance.
DOJ's Bureau of Justice Assistance awarded a Project Safe Neighborhoods grant of $294,867 over two years to Birmingham for its Violent Gang and Gun Crime Reduction Program. The city will use the grant to reduce gang gun violence in Birmingham by implementing saturation patrols in areas with the highest gun crime, and by increasing supervision of at-risk probationers and parolees who live in the high gun-crime areas, according to the grant notification from DOJ's Office of Justice Programs. Birmingham also will implement a Better Basics literacy program for children living in those high crime areas.
The federal PSN program is designed to create safer neighborhoods through a sustained reduction in gun crime and gang violence. The program's effectiveness depends on the cooperation of local, state and federal agencies engaged in a unified approach led by the U.S. attorney. The U.S. Attorney's Office in the Northern District of Alabama has developed numerous partnerships in the Birmingham area, over several years, to help implement a comprehensive PSN strategy to reduce violent crime in the city.
"My office has an effective PSN Task Force that includes law enforcement at all levels," Vance said, "but it also includes researchers and community service providers and support organizations because law enforcement alone will not solve the problem of violent crime," she said. "This DOJ grant will support the multi-faceted approach necessary to fight the crime and to fight the deficits in education and support services that lead new generations into crime and lead those who have served their time in prison to return to crime."
"This grant will help us to achieve the goal of ultimately creating a safer city," said Birmingham Mayor William A. Bell Sr. "The joint effort and interagency support is key to allowing the city to really make great strides in making street-level changes that impact us all.”
"We believe this grant will definitely benefit our efforts to build and sustain a comprehensive approach to reducing violent crime and delinquency in our city," said Birmingham Police Chief A.C. Roper. "This funding will enhance the great teamwork and collaboration amongst our law enforcement agencies and community partners.”
“Pardons and Paroles values its partnership with the U.S. Attorney’s Office for the Northern District, the City of Birmingham, and local community providers as we strategically proceed with creating a safer community by reducing gun crime and gang violence together," said Alabama Pardons and Paroles Board Member Robert P. Longshore. "Funding for much needed agency staff through this grant opportunity will bolster the efforts the state is making to increase public safety by investing in Alabama’s probation and parole officer workforce," he said. "Our local office is committed to dedicating resources in this effort to target high-risk/violent supervised offenders to protect public safety, and assisting with a call-in program to curb the likelihood that supervised offenders will commit new, firearm-based offenses.”
The grant-funded multi-dimensional approach to reducing gang gun violence will bring together the mayor's office, the Birmingham Police Department, the University of Alabama at Birmingham, The Alabama Board of Pardons and Paroles, the non-profit Dannon Project and the Better Basics literacy program.
The city will employ a researcher from UAB to analyze crime and gunshot data to identify the city's violent crime hotspots. The Birmingham Police Department's Neighborhood Enforcement Team and Crime Reduction Team will saturate those hotspots with patrols and will add equipment and training to enhance the department's capacity to combat firearms crime. The Community Policing and Revitalization program in the mayor's office will increase programming within the designated hot spots.
The state pardons and paroles board will work with the U.S. Attorney's Office, the U.S. Marshall Service and the Birmingham Police Department to identify high-risk probationers and parolees and designate them for intensified monitoring, which will make those supervisees eligible for U.S. Department of Labor-funded job-training services from The Dannon Project.
To address the link between academic failure and delinquency, violence and crime, Better Basics will increase its literacy programs for elementary students in schools within identified areas of high violent crime.
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Justice Department Files Lawsuit Alleging Disability-Based Discrimination by Developers of 71 Apartment Complexes in Alabama, Georgia, North Carolina and TennesseeRead the Press Release
The Justice Department filed a lawsuit today in federal court in Birmingham, Alabama, against the owners and developers of 71 multifamily housing complexes in four states for failing to design and construct housing units and related facilities that are accessible to people with disabilities. The 71 complexes contain more than 2,500 ground-floor units that are required by the Fair Housing Act (FHA) to have accessible features. This is the government’s first lawsuit in Alabama alleging violations of the FHA and the Americans with Disabilities Act (ADA) in the design and construction of multi-family housing.
“Those who design and build multifamily housing complexes are required by federal laws that have been on the books for over two decades to provide accessible features for persons with disabilities,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “Unlawful barriers deny Americans with disabilities the basic right to equal housing opportunities.”
“The Fair Housing Act assures individuals with disabilities are provided accessible housing,” said U.S. Attorney Joyce White Vance of the Northern District of Alabama. “My office is committed to taking action in cases where unlawful discrimination violates the access of those with disabilities to fair housing.”
The suit alleges that 36 properties in Alabama, 25 in Georgia, nine in North Carolina and one in Tennessee have significant barriers, including steps leading to building entrances, non-existent or excessively sloped pedestrian routes from apartment units to site amenities (e.g., picnic areas, dumpsters, clubhouse/leasing offices), insufficient maneuvering space in bathrooms and kitchens and inaccessible parking.
The suit names as defendants Alabama-based developers Allan Rappuhn, Gateway Construction Corporation, Gateway Development Corporation and other affiliated companies. The suit seeks a court order requiring the defendants to bring properties into compliance with the FHA and the ADA, as well as monetary damages for persons harmed by the lack of accessibility and a payment of civil penalties to the United States. The complexes at issue, all of which were built with financial assistance from the federal government’s Low-Income Housing Tax Credit program or other federal programs, are:
- Alexander Terrace Apartments, Moulton, AL
- Americus Gardens Apartments, Americus, GA
- Applegate Apartments, Florence, AL
- Autumn Ridge Apartments, Jacksonville, NC
- Bailey Springs Apartments, Lincolnton, NC
- Belle Isle Apartments, Robertsdale, AL
- Blue Springs Apartments, Jacksonville, NC
- Bradbury Apartments, Newton, NC
- Brentwood Landing Apartments, Prattville, AL
- Brentwood Landing II Apartments, Prattville, AL
- Brookstone Village Apartments, Jacksonville, AL
- Canebreak Apartments, Wilmington, NC
- Cedar Glades Apartments, Shelbyville, TN
- Charleston Square Apartments, Troy, AL
- Cherry Ridge Independent Living Apartments, Birmingham, AL
- Cottage Hill Pointe Apartments, Mobile, AL
- Double Creek Apartments, Florence, AL
- Eagle Pointe Apartments, Madison, AL
- Evergreen Village Apartments, Cedartown, GA
- Hamilton Place Apartments, Millbrook, AL
- Harbor Square Apartments, Decatur, AL
- Heatherwood Apartments, Alexander City, AL
- Heritage Vista Apartments, Milledgeville, GA
- Heron Lake Apartments, Valdosta, GA
- Heron Lake II Apartments, Valdosta, GA
- Hickory Run Apartments, Jacksonville, AL
- Hickory Run II Apartments, Jacksonville, AL
- Highland Park Senior Village, Douglasville, GA
- Hunter Pointe Apartments, Centreville, AL
- Ivy Pointe Apartments, Tuscumbia, AL
- Ivy Pointe II Apartments, Tuscumbia, AL
- Kirby Creek Apartments, Cairo, GA
- Kirkwood Trail Apartments, Cedartown, GA
- Lakeshore Crossing Apartments, Huntsville, AL
- Lenox Station Apartments, Rockingham, NC
- Liberty Square Apartments, Montgomery, AL
- Mallard Lake Apartments, LaGrange, GA
- Maple Square Apartments, Jefferson, GA
- Meadowview Apartments, Greenville, AL
- Oakland Mill Apartments, Lincolnton, NC
- Oleander Park Apartments, Mobile, AL
- Orchard Park Apartments, Hayneville, AL
- Palladian Apartments, Mobile, AL
- Palladian-Fairhope Apartments, Fairhope, AL
- Palladian-Jubilee Apartments, Daphne, AL
- Palladian II Apartments, Mobile, AL
- Parkwood Apartments, Pell City, AL
- Pebble Creek Apartments, Butler, AL
- Pinewood Apartments, Pooler, GA
- Powell Place Apartments, Barnesville, GA
- Preston Place Apartments, Quitman, GA
- Shadowood Apartments, Stevenson, AL
- Shellbrooke Pointe Apartments, Fairhope, AL
- Sheppard Station Apartments, Pooler, GA
- Skyline Trace Apartments, Monroe, GA
- Sterling Oaks Apartments, Spindale, NC
- Stoney Creek Apartments, Laurinburg, NC
- Stony Ridge Apartments, Hogansville, GA
- Sullivan Village Apartments, Tuscumbia, AL
- The Park at Rocky Ridge Apartments, Birmingham, AL
- Timberfalls Apartments, Thomaston, GA
- Valley Ridge Apartments, LaGrange, GA
- Village at Wedgewood Apartments, Cairo, GA
- Villas on Forsyth Apartments, Barnesville, GA
- Waring II Apartments, Waycross, GA
- Waterford Farms Apartments, Arab, AL
- Wincliff Apartments, Gainesville, GA
- Woodlawn Terrace Apartments, Valdosta, GA
- Glencoe Trace Apartments, Griffin, GA
- Waring Apartments, Waycross, GA
- Westfork Apartments, Jasper, AL
Anyone with information about the inaccessible conditions at these properties should call the Justice Department at 1-800-896-7743and follow the prompts to enter mailbox number 2.
The FHA prohibits discrimination in housing based on race, color, religion, national origin, sex, familial status and disability. Among other things, it requires all multifamily housing constructed after March 13, 1991, to have basic accessibility features, including accessible routes without steps to all ground floor units and units accessible to wheelchair users and others with disabilities. Enacted in 1990, the ADA requires, among other things, that places of public accommodation—such as rental offices—at multifamily housing complexes designed and constructed for first occupancy after Jan. 26, 1993, be accessible to persons with disabilities. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt.
The complaint is an allegation of unlawful conduct. The allegations in the complaint must still be proven in federal court.
Office Manager Indicted for Stealing More Than $980,000 from Birmingham Surgical PracticeRead the Press Release
BIRMINGHAM -- A federal grand jury on Thursday indicted the office manager of a Birmingham surgical practice on charges related to the theft of more than $987,375 from her employer, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton and Internal Revenue Service and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Veronica Hyman-Pillot.
A nine-count indictment filed in U.S. District Court charges ANNTWINE MOSS, 49, of Bessemer, with five counts of wire fraud and four counts of tax evasion for stealing more than $987,375 from Thoracic and Cardiovascular Surgery of Alabama between 2006 and 2013.
According to the indictment, Moss executed a scheme to defraud the surgical practice by using her authority as office manager to write unauthorized checks to herself, make unauthorized direct deposits into her account, and use the company's credit cards for unauthorized personal purchases. As office manager, Moss had authority over several key functions including payroll, accounting, bookkeeping and managing the office's budget. The indictment also charges that she falsified her personal tax returns for several years by failing to report to the IRS the illicit income she stole from TCVSA.
The maximum penalty for each wire fraud count is 20 years in prison and a $250,000 fine, while the tax evasion count carries a maximum penalty of 20 years in prison and a $1 million fine.
The FBI and IRS investigated the case, which Assistant U.S. Attorney Xavier O. Carter Sr. is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Woman in Prison for BP Oil Spill Fraud Sentenced to Two More Years for Food Stamp Fraud and Tax EvasionRead the Press Release
BIRMINGHAM -- A federal judge today sentenced a McCalla woman to two years in prison for food stamp fraud and evading income taxes. The woman currently is in prison for attempting to defraud the Gulf Coast oil spill claims fund, announced U.S. Attorney Joyce White Vance, Internal Revenue Service, Criminal Investigation, Special Agent in Charge Veronica Hyman-Pillot, and U.S. Department of Agriculture Office of Inspector General, Investigations, Special Agent in Charge Karen Citizen-Wilcox.
U.S. District Judge L. Scott Coogler sentenced SHERICA LACEY LEE, 33, on one count each of tax evasion and wire fraud. Lee pleaded guilty to the charges in August. Lee is serving a one year and day prison sentence for attempting to defraud the Gulf Coast oil spill fund. She is scheduled to complete that sentence in January, and the time she serves between now and then will be applied to the two-year sentenced she received today.
In accordance with Lee's plea agreement with the government on the food stamp fraud and tax evasion charges, Judge Coogler ordered her to forfeit $23,757 to the government as proceeds of illegal activity. She also must pay that same amount in restitution, plus interest, to the Department of Agriculture for food stamp benefits she was not eligible to receive between July 2009 and June 2013, and she must pay $134,448 in restitution, plus interest, to the IRS for taxes not paid in 2008 through 2010. Judge Coogler fined Lee $7,500.
According to Lee's guilty plea, she evaded income taxes for 2008 by preparing and submitting a personal tax return that falsely reported she had no taxable income, when she had $229,147 in taxable income that year. Lee ran a tax preparation business, Lacey's Income Tax Service, with several locations in the Birmingham area. Between 2008 and 2010, Lee's company filed more than 2,000 tax returns and generated about $2.5million in receipts.
Lee committed wire fraud as part of a scheme to obtain federal benefits from the USDA Supplemental Nutrition Assistance Program. USDA administered SNAP, formerly known as the Federal Food Stamp Program, in conjunction with the Alabama Department of Human Resources.
Although Lee had income in excess of $200,000 in 2009, she applied for SNAP benefits by falsely stating on her application to DHR that she had no household income, cash on hand, or money in the bank, according to her plea. Lee submitted additional false application forms in 2010, 2011 and 2012. Her applications caused the $23,757 in SNAP benefits to be wired to an account established in her name and loaded monthly onto an Electronic Benefit Transfer card, which could be used as a debit card to purchase food.
IRS, Criminal Investigation, and USDA-OIG investigated the case, which Assistant U.S. Attorney Pat Meadows prosecuted.
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Law Enforcement Across North Alabama Taking Back Unwanted Prescription Drugs on SaturdayRead the Press Release
Ridding Home of Unused Drugs Discourages Abuse and Addiction
BIRMINGHAM -- U.S. Attorney Joyce White Vance, DEA Assistant Special Agent in Charge Clay A. Morris and law enforcement across north Alabama are asking residents to take advantage of DEA's 10th Prescription Drug Take-Back Day this Saturday to dispose of unused prescription drugs properly and without damage to the environment.It is critical to get unused, unwanted and expired prescription drugs out of family medicine cabinets before they can fall into the hands of children and others who might use them to fuel addiction. This year, along with the take-back sites at community locations across north Alabama, the U.S. Attorney's Office will provide new drug-neutralizing pouches that will be given out at some of the take-back sites for people to try at home.
The patented Deterra Drug Deactivation System neutralizes prescription drugs poured into the foil pouches that contain a proprietary activated carbon, rendering the drugs ineffective for misuse and safe for the environment, according to Deterra's manufacturer, Minneapolis-based Verde Technologies.
"We live in a state with one of the nation's highest per capita rates of opioid painkiller prescriptions," Vance said. "It is a fact that there is a strong link between prescription painkiller abuse and heroin use and, sadly, many addicts get their first dose from a family member's medicine cabinet," she said.
"Cultivating a habit of removing unused prescriptions from our homes is a vital step in curtailing easy access," Vance said. "DEA's nine previous Take-Back Days have cleared tons of prescription drugs from our neighborhoods. With the new drug-neutralizing pouches we are introducing, individuals could have a safe and effective means to dispose of unwanted pharmaceuticals at home, year-round."
“Prescription drug abuse continues to be a problem in Alabama," Morris said. "Parents should talk to their children about the dangers of taking prescription medication not prescribed to them and help reduce the threat of drug abuse, theft, and accidental overdoses. Please take this opportunity to clean out your medicine cabinet and keep your loved ones safe and healthy,” he said.
DEA and local law enforcement will operate take-back sites from 10 a.m. to 2 p.m. on Saturday. For the 10th time in five years, through a national Prescription Drug Take-Back Day, DEA is offering the public a convenient way to prevent pill abuse and theft by ridding their homes of potentially dangerous expired, unused and unwanted prescription drugs.
Sites abound across north Alabama. The Birmingham Police Department will take back prescription drugs at each of its four precincts. The Blount County District Attorney's Office is operating at least six sites at pharmacies throughout the county. Police and sheriff's departments throughout the Greater Birmingham Metro Area and beyond are participating. Exact collection sites can be found by zip code, state or city at www.deadiversion.usdoj.gov/drug_disposal/takeback/.
DEA cannot accept liquids, needles or sharps, only pills or patches. The service is free and anonymous, no questions asked.
Last September, Americans turned in 309 tons -- more than 617,000 pounds -- of prescription drugs at nearly 5,500 sites operated by the DEA and more than 4,000 of its state and local law-enforcement partners. When those results are combined with what was collected in its eight previous Take Back events, DEA and its partners have taken in more than 2,400 tons, or 4.8 million pounds, of pills.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that the majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. In addition, Americans now are advised that their usual methods for disposing of unused medicines — flushing them down the toilet or throwing them in the trash — pose potential safety and health hazards.
For more information about the disposal of prescription drugs or about the September 26 Take Back Day event, go to the DEA Office of Diversion Control site.
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Senior Living Center Employee Sentenced to Nearly Five Years in Prison for ID Theft and $335,000 Fraud Against Elderly ResidentRead the Press Release
BIRMINGHAM -- A federal judge today sentenced a former Hoover senior living center employee to four years and nine months in prison for using the identity of a resident with dementia to steal more than $300,000 from the resident's bank and credit accounts, announced U.S. Attorney Joyce White Vance and U.S. Secret Service Special Agent in Charge Craig Caldwell.
U.S. District Judge Abdul K. Kallon sentenced SHOSTOCKA KEYA WARD, 43, of Pleasant Grove, for bank fraud and aggravated identity theft. In accordance with Ward's plea agreement with the government, the judge also ordered her to pay $335,214 in restitution to the power of attorney for her elderly victim and several financial institutions, and to forfeit the same amount to the government as proceeds of illegal activity. Ward pleaded guilty to the charges in May. She must report to prison Jan. 4.Between Oct. 11, 2011, and Feb. 13, 2014, Ward carried out a scheme to defraud eCO Credit Union of money in the victim’s account through various means and without the victim’s authorization. According to Ward's guilty plea, her fraud included, in part, writing more than $70,000 in unauthorized checks to herself and using the victim's credit cards to charge thousands of dollars for expenses that included financing her own wedding, applying money to someone's prison account, making car and private school tuition payments, and taking trips to Las Vegas, Chicago, Tunica, Miss., and Gatlinburg, Tenn.
According to court documents, Ward worked at Galleria Woods as a resident assistant or a transportation coordinator from about August 2010 to January 2014. In 2011, Ward became acquainted with the victim, a Galleria Woods resident who was 75 years old, had no immediate family, few visitors and an out-of-town family friend who served as her power of attorney, but was not actively involved in her daily care or the management of her daily finances.Ward began assisting the victim with transportation, errands, bill payments and other financial issues, and gained access to the victim’s purse, mail, financial statements, checkbook, and debit and credit cards. Ward maintained her relationship with the victim during her employment at Galleria Woods as the victim’s mental and physical condition declined and she became incapable of managing her financial affairs, according to Ward's plea.
U.S. Secret Service investigated the case, which Assistant U.S. Attorney Erica Williamson Barnes prosecuted.
Law Enforcement Arrests 30 of 33 Defendants Charged in Madison-Morgan County Cocaine ConspiracyRead the Press Release
HUNTSVILLE -- Federal and local law enforcement today arrested 30 of 33 defendants indicted in August as part of a long-running conspiracy to distribute cocaine in north Alabama. U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton, Huntsville Police Chief Mark McMurray, and Decatur Police Chief Ed Taylor announced the charges and arrests.
Most of the defendants live in the Huntsville-Decatur area and are charged with conspiring to distribute and to possess with intent to distribute cocaine from January 2013 to March 2015 in Morgan and Madison counties. The 33-count indictment also includes 26 counts of using a telephone to facilitate the drug conspiracy. All 26 telephone counts cite MARCUS MONDEZ “Bubba” LAMPKIN, 42, of Decatur, in individual calls with 26 of the other defendants.
As part of the investigation, law enforcement earlier seized $468,250 cash, more than 38 kilograms of cocaine and three firearms. In the course of today's arrests, four more handguns and one rifle were seized.
"This investigation successfully took down a major cocaine-trafficking organization operating in northern Alabama," Vance said. "This is another prime example of how federal, state and local law enforcement, working together, are able to successfully dismantle narcotics smuggling organizations and reduce the availability of illegal drugs on the streets," she said.
"The arrests today, and the volume of drugs seized highlight the potentially devastating impact this criminal enterprise had on Madison-Morgan County and the surrounding area," Stanton said. "I particularly want to thank the Decatur Police Department and the Madison-Morgan County HIDTA Task Force (STAC) for their outstanding work in bringing this case to fruition. The public should rest assured knowing that the FBI and our partners will continue to root out these kinds of significant criminal enterprises."
“Numerous officers and agents have devoted countless hours to this investigation, and the arrests made and drugs seized are evidence of their hard work and dedication,” said Huntsville’s Chief McMurray. “The Huntsville Police Department is proud of the relationship we share with our neighboring agencies, as well as those at the state and federal level. Without these relationships, today’s success would not have been possible. I particularly want to thank the members of the HIDTA Task Force (STAC) for the outstanding job they do on a daily basis serving our community in the fight against drugs.”
"These arrests and drug seizures represent a significant impact on drug trafficking in our community and the surrounding area," said Decatur's Chief Taylor. "We are very pleased at the success of this operation that highlighted the partnership of several area agencies, the Madison-Morgan County HIDTA Task Force, the Decatur Police Department and the FBI, working together to combat a significant drug-dealing enterprise," he said. "This successful operation represents hundreds of hours of dedicated work by many law enforcement officers, all of whom should be commended for making our community a better place to live and work."
Indicted in the conspiracy along with MARCUS LAMPKIN are: MICHAEL GREGORY “Udo" SMITH, 31, XAVIER RASHAAD “June” JOYNER, 32, JERMAINE “Main Main” CUNNINGHAM, 37, LAMOND FREDRICK “Lemon” BOYKIN, 39, CLIFFORD ORR, 63, EMEKA KENNGE FOSTER, 38, ANDRE LASALLE “Put” CATER, 43, BRANDON DEWAYNE FENNELL, 33, JAMES EARL “Little James” MITCHELL, 21, RODERICK CORNELIUS “Rara” CUNNINGHAM, 33, VALERIE ANNETTE LYNCH, 27, MARCUS DWAYNE “Butch” TRAMMELL, 45, ALMON JARIE “Beetle” LAMPKIN, 33, FREDERICK ELI “Poochie” BROWN JR., 35, NATASHA MARIE LAMPKIN, 35, LATONYA ROSHELLE “Punkin” ELLIOTT, 27, RASHOD MARTEL “Rara,” LAMPKIN, 23, and LEON TREMAYNE “Ears TEAGUE, 39, all of Decatur, ANTHONY DAWSON “Billy D” McCOMB II, 32, SUN RAJON WOODS, 21, QUINDARRIUS UNTARRIO “OG” McCANTS, 26, DANIEL LEON WORSLEY, 30, DARION DEONTE “Red” McCLENDON, 27, DEMARCUS ANTWAN TONEY, 31, DAVID EARL HARDIN, 45, MARSHALL “Tweetie” HUGHES JR., 42, and JAMES CORTEZ “Punkin” TIMMONS, 26, all of Huntsville, HARVEY JABOR “Jabar” FREEMAN, 43, of Madison, THOMAS ANTHONY STRONG, 22, of Athens, DARIK ONEAL SHARPLEY, 36, of Hillsboro, FELITA VAUGHN, 38, of Florence, and GARY WAYNE ADAMS, 46, of Baton Rouge, La.
The four Lampkins are related. Marcus Lampkin is Natasha Lampkin's uncle. Almon Lampkin and Rashod Lampkin are brothers, and also cousins of Natasha Lampkin.
In an early morning roundup today, FBI agents and members of the Madison-Morgan County High Intensity Drug Trafficking Area Task Force, known as STAC, spread out across north Alabama and arrested all but three of the defendants. Authorities still are seeking Joyner, Sharpley and Hardin.
The indictment separates defendants by the amount of cocaine attributable to them in the conspiracy to distribute the illegal drug.
Marcus Lampkin, Smith, McComb, Woods and Adams are charged with conspiracy to distribute five kilograms or more of cocaine.
McCants, Joyner, Jermaine Cunningham, Boykin, Orr, Worsley, McClendon, Foster, Cater, Fennell, Toney, Sharpley, Mitchell and Roderick Cunningham are charged with conspiring to distribute 500 grams or more of cocaine. Defendants Lynch, Hardin, Trammell, Strong, Hughes, Timmons, Almon Lampkin, Brown, Natasha Lampkin, Elliott, Freeman, Rashod Lampkin, Vaughn and Teague are charged with conspiracy to distribute "an amount of a mixture and substance containing a detectable amount of cocaine hydrochloride."
Along with the 26 counts of using a telephone during a drug crime, the indictment also charges Boykin with one count of distributing crack cocaine in Morgan County, charges McCants with one count of possessing with intent to distribute cocaine in Madison County and charges McComb with using a firearm during a drug-trafficking offense in Morgan and Madison counties. The indictment charges Toney with one count each of possessing with intent to distribute crack cocaine, using a firearm in furtherance of a drug-trafficking crime and being a felon in possession of a firearm.
In a related case indicted in March, four Mexican nationals have pleaded guilty to participating in a conspiracy to distribute more than five kilograms of cocaine in Morgan and Shelby counties between March 2013 and March 2015. The four men are scheduled for sentencing Sept. 29. They are Eric Guadarama “Migo," Rubi, 25, his brother, Luis David Guadarama Rubi, 19, Jorge Gante, 36, and Carlos Juarez Flores, 24.
Maximum penalties for the crimes charged in the indictment unsealed today are as follows:
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Conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine, 10 years to life in prison and a $10 million fine;
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Conspiracy to
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Conspiracy to distribute and possession with intent to distribute cocaine, 20 years in prison and a $1 million fine;
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Using a telephone during or to facilitate a drug-traffickingcrime, four years in prison and a $250,000 fine;
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Distributing crack cocaine and possession with intent to distribute cocaine, 20 years in prison and a $1 million fine;
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Using a gun in furtherance of a drug-trafficking crime, a minimum of five years in prison and a $250,000 fine;
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Possession with intent to distribute 28 grams or more of crack cocaine, five to 40 years in prison and a $5 million fine;
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Convicted felon in possession of a firearm, 10 years in prison and a $250,000 fine.
The FBI, in conjunction with Huntsville, Decatur and Pelham police departments, Madison and Morgan County sheriff's offices, Madison County District Attorney's Office, federal Drug Enforcement Administration, and Alabama Law Enforcement Agency, investigated the case, which Assistant U.S. Attorneys Mary Stuart Burrell and Davis Barlow are prosecuting.
An indictment contains charges. Defendants are presumed innocent unless and until proven guilty.
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Birmingham Store Owner Sentenced to Three Years in Prison for Food Stamp and Tax FraudRead the Press Release
BIRMINGHAM -- A federal judge today sentenced the owner of a Southside Birmingham grocery store to more than three years in prison for food stamp and tax fraud totaling more than $1.6 million, announced U.S. Attorney Joyce White Vance, U.S. Department of Agriculture Office of Inspector General, Investigations, Special Agent in Charge Karen Citizen-Wilcox, and Internal Revenue Service Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot.
U.S. District Judge R. David Proctor sentenced SUFYAN HAZEM SALEH, 33, of Birmingham, to 36 months in prison for subscribing to false tax returns for 2009 and 2010, and to 37 months in prison for food stamp fraud. The sentences are to run concurrently. Saleh pleaded guilty to the charges in June.
As part of Saleh's sentence, and in accordance with his plea agreement with the government, the judge ordered Saleh to pay restitution of $498,470 to the IRS and $1,125,772 to the USDA, which administers the food stamp program under the name Supplemental Nutrition Assistance Program, or SNAP. Salah also must forfeit $375,220 to the government as proceeds of illegal activity. He must report to prison Dec. 9.
Saleh owns the now closed City Supermarket at 1531 13th Place South, a convenience grocery story that was authorized by USDA to accept food stamp benefits, according to his indictment and plea agreement
Individuals in the SNAP program receive benefits from the USDA on an electronic benefit transfer card, which functions like a debit card. Saleh pleaded guilty to redeeming EBT SNAP benefits for cash, which is prohibited, between January 2010 and December 2011. Of the approximate $1.9 million City Supermarket redeemed in EBT SNAP benefits during that period, the USDA estimated that $1,125,772 was food stamp fraud, according to Saleh's plea.
Saleh also pleaded guilty to tax fraud for under reporting to the IRS his 2009 and 2010 income received from redeeming SNAP benefits. Saleh did not report about $1.6 million in income from food stamp redemption for the two tax years, resulting in a tax loss of about $498,470, according to his plea.
The USDA-OIG and IRS-CI investigated the federal case, which Assistant U.S. Attorney Pat Meadows prosecuted.
Birmingham Woman Sentenced for Stealing Grandmother's Social Security Benefits for 21 YearsRead the Press Release
BIRMINGHAM -- A federal judge today sentenced a Birmingham woman to six months in prison and six months home detention for stealing Social Security benefits intended for her grandmother for more than 21 years after her grandmother died, announced U.S. Attorney Joyce White Vance and Social Security Administration Office of Inspector General Resident Agent in Charge Marvin Mauldin.
U.S. District Judge Sharon Lovelace Blackburn ordered WENDI D. BALDWIN, 47, to forfeit $30,934 to the government as proceeds of illegal activity and to pay that same amount in restitution to the Social Security Administration. Baldwin stole more than $155,000 in benefits, but the statute of limitations on the theft charge restricted the government to recovering only five years' worth of benefits. Baldwin pleaded guilty in February to one count of theft of government property.
According to Baldwin's plea agreement with the government, she stole the SS Retirement, Survivors and Disability Insurance benefits between January 1992 and July 2013, following her grandmother's death in December 1991. The benefits were being deposited directly into a bank account Baldwin held jointly with her grandmother. Baldwin failed to notify the Social Security Administration when her grandmother died and converted the benefits to her personal use, according to Baldwin's plea.
The SSA discovered the theft of funds in 2013 after several failed attempts to contact Baldwin's grandmother.
The SSA-OIG investigated the case, which Assistant U.S. Attorney Xavier O. Carter Sr. is prosecuting.
Moody Man Pleads Guilty to Stealing $41,098 from Jewish TempleRead the Press Release
BIRMINGHAM -- A Moody man pleaded guilty this week in federal court to one count of wire fraud as part of his scheme to steal $41,098 from his employer, Temple Emanu-el in Birmingham, announced First Assistant United States Attorney Robert Posey and FBI Special Agent in Charge Roger C. Stanton.
CHARLES M. COLLINS, 66, entered his guilty plea before U.S. District Judge Abdul Kallon. His sentencing is scheduled Dec. 4.
Collins served as the accounting manager for Temple Emanu-el from June 2008 to November 2013, when his scheme was discovered. In his plea agreement with prosecutors, Collins admitted that he took advantage of that position to send unauthorized wire transfers from a local bank into his own personal bank accounts. Collins agreed to forfeit $41,098 to the government as proceeds of illegal activity.
The maximum penalty for wire fraud is 20 years in prison and a $250,000 fine.
The FBI investigated the case, which Assistant U.S. Attorney Xavier O. Carter Sr. is prosecuting.
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Honduran Man Indicted for Knowingly Transporting Illegal Aliens in U.S.Read the Press Release
BIRMINGHAM -- A federal grand jury today indicted a Honduran man on charges he knowingly transported illegal aliens within the United States for personal financial gain, announced U.S. Attorney Joyce White Vance and Special Agent in Charge Raymond R. Parmer Jr. of the Department of Homeland Security's Immigration and Customs Enforcement Agency.
A four-count indictment filed in U.S. District Court charges JULIO ALBERTO BALDARES-GARCIA, 23, with transporting four individuals through Jefferson County on Aug. 5 who he knew were in the United States illegally. According to the indictment, Baldares-Garcia was transporting the individuals for private financial gain.
The maximum penalty for alien smuggling is 10 years in prison and a $250,000 fine.
ICE investigated the case, which the U.S. Attorney's Office for the Northern District of Alabama is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Anniston Army Depot Employee Indicted for Bribery, Providing Contraband to Federal PrisonersRead the Press Release
BIRMINGHAM – A federal grand jury today indicted an Anniston Army Depot employee for bribery and introducing contraband to federal prisoners, announced U.S. Attorney Joyce White Vance and Special Agent in Charge Robert Bourbon of the U.S. Department of Justice Office of the Inspector General’s Miami Field Office.
MARK DAVID THORNTON, 55, of Gadsden, was charged in an 18-count indictment filed in U.S. District Court.
“An individual who supervises prisoners and takes bribes in order to deliver contraband to them corrupts the underpinnings of our prison system,” Vance said. “Those crimes will be punished.”
“The introduction of contraband creates safety hazards for both inmates and staff,” Bourbon said. “The Department of Justice Office of the Inspector General will continue its efforts to ensure that federal prisons are as safe and secure as possible, and that anyone who supervises inmates and accepts bribes is brought to justice.”
Counts one through 15 of the indictment charge Thornton with bribery for corruptly accepting money from inmates at the Federal Correctional Institution, Talladega, in exchange for providing them with contraband between March 2014 and May 2015.
Count 16 charges Thornton with providing a cell phone to one inmate. Counts 17 and 18 charge Thornton with providing, or attempting to provide, t-shirts, protein powder and cigarettes to prisoners housed at FCI, Talladega.
Bribery carries a maximum penalty of 15 years in prison and a $250,000 fine. Introducing contraband into a prison is a misdemeanor, with a maximum sentence of up to one year in prison and a $100,000 fine.
The case was investigated by special agents of the U.S. Department of Justice Office of the Inspector General, and will be prosecuted by Assistant U.S. Attorney Davis A. Barlow.
Members of the public are reminded that an indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Woman in Prison for BP Oil Spill Fraud Pleads Guilty to Food Stamp Fraud and Tax EvasionRead the Press Release
BIRMINGHAM -- A McCalla woman, already serving time for attempting to defraud the Gulf Coast oil spill claims fund, pleaded guilty today in federal court to charges of food stamp fraud and evading income taxes. U.S. Attorney Joyce White Vance, Internal Revenue Service, Criminal Investigation, Special Agent in Charge Veronica Hyman-Pillot, and U.S. Department of Agriculture Office of Inspector General, Investigations, Special Agent in Charge Karen Citizen-Wilcox announced the plea.
SHERICA LACEY LEE, 33, entered her guilty pleas to one count each of tax evasion and wire fraud before U.S. District Court Judge L. Scott Coogler. Her sentencing date has not been set.
The U.S. Attorney's Office filed the charges against Lee in June and Lee entered a plea agreement with the government at that time. As part of her plea, Lee agrees to forfeit $23,757 to the government as proceeds of illegal activity. She also agrees to pay restitution of $134,448 to the IRS for taxes not paid in 2008 through 2010, plus $23,757 to the Department of Agriculture for food stamp benefits she was not eligible to receive between July 2009 and June 2013.
According to the charges and Lee's plea, she evaded income taxes for 2008 by preparing and submitting a personal tax return that falsely reported she had no taxable income, when she had $229,147 in taxable income that year. Lee ran a tax preparation business, Lacey's Income Tax Service, with several locations in the Birmingham area. Between 2008 and 2010, Lee's company filed more than 2,000 tax returns and generated about $2.5million in receipts.
Lee committed wire fraud as part of a scheme to obtain federal benefits from the USDA Supplemental Nutrition Assistance Program. USDA administered SNAP, formerly known as the Federal Food Stamp Program, in conjunction with the Alabama Department of Human Resources.
Although Lee had income in excess of $200,000 in 2009, she applied for SNAP benefits by falsely stating on her application to DHR that she had no household income, cash on hand, or money in the bank, according to her plea. Lee submitted additional false application forms in 2010, 2011 and 2012. Her applications caused the $23,757 in SNAP benefits to be wired to an account established in her name and loaded monthly onto an Electronic Benefit Transfer card, which could be used as a debit card to purchase food.
Lee is serving a one-year and a day prison term for attempting to defraud the Gulf Coast Claims Facility.
IRS, Criminal Investigation, and USDA-OIG investigated the case, which Assistant U.S. Attorney Pat Meadows is prosecuting
Federal Jury Convicts Serra Nissan Controller for Fraud Conspiracy at Birmingham DealershipRead the Press Release
BIRMINGHAM – A federal jury today convicted the controller at Birmingham's Serra Nissan dealership for conspiring to defraud Nissan North America through the manufacturer's sales incentive program, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton, and Internal Revenue Service-Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot.
Jurors found KIMBERLY H. BRANCH, 34, of Trussville, guilty of conspiracy following three days of testimony before U.S. District Judge Madeline H. Haikala. No sentencing date has been set, and Branch remains free on bond.
"Whether it is consumers or corporate victims, my office takes fraud very seriously and will continue to prosecute those who deceive and cheat others," Vance said.
According to court testimony, Branch and others at Serra Nissan falsified sales reports submitted by wire to the manufacturer between March 2013 and April 2013 so Serra Nissan could receive sales incentive payments it did not earn. Branch and other Serra Nissan employees falsified the reports to reflect that the Birmingham dealership sold 15 specific vehicles that, in fact, were sold at Serra Visser Nissan in Cullman. The process is sometimes called “pooling sales” and occurs when a dealer who owns or is associated with more than one dealership combines or attributes sales from one dealership to another in order to meet sales incentives levels that each dealership would not reach on its own.
Branch assisted another Serra Nissan employee in creating false files, or "jackets," on each sales transaction to hide the fraud, in the event Nissan North America audited the dealership, according to testimony. The 15 vehicle sales fraudulently reported at Serra Nissan caused Nissan North America to pay the dealership $82,750 in unearned incentives.
Branch's conviction follows a guilty plea in July from Randy D. Visser, general manager of Serra Nissan, to conspiracy to defraud Nissan North America through its dealership incentive programs. Visser, 45, of Liberty Park, admitted he directed officers at the Birmingham dealership to falsify sales reports in order to pool sales from the Cullman dealership. Visser is scheduled for sentencing Nov. 17.
Eight other Serra Nissan managers or salesmen pleaded guilty early this year in a separate conspiracy to boost loan approvals and car sales by creating and submitting falsified loan documents to lenders.
FBI and IRS-CID investigated the case, which Assistant U.S. Attorneys Amanda S. Wick and Jennifer S. Murnahan are prosecuting.
Hoover Man Sentenced to Seven Years in Prison for Ponzi Scheme that Bilked Millions from InvestorsRead the Press Release
BIRMINGHAM -- A federal judge today sentenced a Hoover man to more than seven years in prison for defrauding investors out of more than $3 million through an illegal Ponzi scheme, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton, Alabama Securities Commission Director Joseph P. Borg and Hoover Police Chief Nick Derzis.
U.S. District Judge Virginia Emerson Hopkins sentenced BRYAN W. ANDERSON, 41, to seven years and three months in prison for wire fraud, money laundering and securities fraud. Anderson pleaded guilty to the charges in March. In accordance with his plea agreement with the government, the judge also ordered Anderson to pay restitution of almost $3.1 million to the victim investors and to forfeit that same amount to the government as proceeds of illegal activity. Anderson must report to prison Oct. 19
"Brian Anderson ran a Ponzi scheme for years, lying about investment options, risks and potential returns to lure unwitting investors into his snare," Vance said. "Those investors trusted Anderson, and when his Ponzi scheme inevitably crashed down, they lost millions. I am proud of the collaboration among the FBI, Alabama Securities Commission, Hoover Police Department and the U.S. Attorney's Office that, today, brings Anderson to punishment for his crimes," she said.
“Along with our partners, the FBI remains committed to investigating those who hide behind deceptive financial fraud schemes and victimize innocent consumers," Stanton said. "I encourage members of the public to learn ways to protect themselves from fraud at www.stopfraud.gov.”
“While this sentence sends a strong message to Anderson and other con-artists thinking about victimizing Alabamians, nothing will ever make up for the damages caused to victims and their families who lost millions of dollars," said the ASC's Borg. "We appreciate the team effort of all agencies involved and were glad to provide resources to assist in an investigation that led to the prosecution of Anderson.”
“I’m very proud of the role our detectives played in the resolution of this complex investigation," Derzis said. "Our Financial Crimes Unit is continuing to see bigger cases with significant financial losses to victims. In this particular case, we recognized the extent of the fraud committed by Mr. Anderson and contacted the Alabama Securities and Exchange Commission and the FBI," he said. "We continue to have excellent relationships with our law enforcement partners and this case represents what can be accomplished when we work together.”
According to court documents in the case, Anderson conducted his investment scheme as follows between 2009 and May 30, 2014:
During most of that time, Anderson was a registered financial broker working, first, with MetLife Securities, from October 1998 to February 2012, then with Pruco Securities, from February 2012 to Sept. 13, 2012, when Pruco terminated his employment.
As part of his scheme to defraud investors, he solicited them to invest in stock options that he said employed various trading strategies. The stock options he described were not registered securities, and Anderson had no authority to solicit investor money for the funds.
Anderson also offered investments in a company he owned, 360 Properties. Beginning about 2009, Anderson falsely represented to certain 360 Properties investors that their returns would come from leased property income, when there were no leased properties. Some of the investors believed the 360 Properties investments were affiliated with MetLife, and Anderson did nothing to correct that false belief.
Between January 2009 and January 2014, Anderson's false investment promises caused about 18 individual and family investors to deliver more than $8.4 million to Anderson, which he deposited into an account he and his wife held at BancorpSouth, a bank based in Tupelo, Miss. When Anderson's investment scheme collapsed in May 2014, about 12 investors lost about $3.1 million.
Anderson was operating a Ponzi scheme with investor funds, paying returns to existing investors with money from new investors, as well as paying personal expenses. He transferred investor money from one of his and his wife's bank accounts to another, making only a small percentage of the investments he had promised investors.
Anderson pleaded guilty to wire fraud for causing an investor, identified in court documents by the initials K.C., to wire transfer $571,378 from the investor's Wells Fargo bank account to Anderson's BancorpSouth account in the name of 360 Properties on Jan. 15, 2014.
Anderson pleaded guilty to money laundering for taking $368,000 of the $571,378 received from K.C. and, on Jan. 15, transferring it by wire to a second BancorpSouth account. The $571,378 was "criminally derived property" obtained through wire fraud. It is a violation of federal law to engage in a monetary transaction involving money or property worth more than $10,000 that was obtained through a criminal act.
Anderson pleaded guilty to securities fraud for fraudulently obtaining $100,000 from an investor, identified by the initials T.M., on Aug. 20, 2013, by falsely representing that he would invest the money in a specific type of hedge fund. T.M. wired the money from an account at Bryant Bank to one of Anderson's BankcorpSouth accounts and Anderson took the money and used it for non-investment purposes.
The FBI, ASC and the Hoover Police Department investigated the case, which Assistant U.S. Attorney Pat Meadows prosecuted.