Northern District of Alabama
Press releases recorded for this federal judicial district.
U.S. ATTORNEY ANNOUNCES $3.8 MILLION IN HIRING GRANTS FOR ALABAMA LAW ENFORCEMENT AND SCHOOL SAFETY OFFICERS Funds Will Hire School Resource Officers and Critical Law Enforcement PositionsRead the Press Release
BIRMINGHAM – U.S. Attorney Joyce White Vance, in conjunction with the U.S. Department of Justice Office of Community Oriented Policing Services, today announced $3.8 million in law enforcement hiring grants statewide, including about $1 million in the Northern District of Alabama.
The police and sheriff's departments in North Alabama receiving $999,839 in COPS grants are the Etowah County Sheriff's Department, $261,734; Heflin Police Department, $107,300; Jasper Police Department, $218,420; Pell City Police Department, $223,626; and Talladega Police Department, $188,759. In addition, statewide, the Alabama Department of Public Safety is to receive $1,875,000 and the Mobile Police Department $926,993.
"In the wake of past tragedies, it's clear that we need to be willing to take all possible steps to ensure that our kids are safe when they go to school," said Attorney General Eric Holder. "These critical investments represent the Justice Department's latest effort to strengthen key law enforcement capabilities, and to provide communities with the resources they need to protect our young people. Especially in a time of increased challenges and limited budgets, our top priority must always be the safety and well-being of our children."
Overall the COPS Office funded awards to 263 cities and counties, aimed at creating 937 law enforcement positions. More than $125 million will be awarded nationally, including nearly $45 million to fund 356 new school resource officer positions.
"Keeping our children safe when they go to school is of critical importance," Vance said. "I am pleased to join the Attorney General and the COPS Office in announcing these grants, which will help provide our communities with the resources needed to accomplish this, and other vital law enforcement missions," Vance said."The COPS Office is pleased to assist local law enforcement agencies throughout the country address their most critical public safety issues," said Joshua Ederheimer, acting director of the COPS Office. "Funding from this year's program will allow many cities and counties to apply new sworn personnel to issues related to violent crime, property crime, and school safety."
The COPS Hiring Program offers grants to state, local and tribal law enforcement agencies to hire or rehire community-policing officers. The program provides the salary and benefits for officer and deputy hires for three years.
With this year's grants in North Alabama, the Etowah County Sheriff's Department is awarded the salaries of three officers, the Heflin Police Department receives one, and the Jasper, Pell City and Talladega police departments each receive salaries for two officers, Vance said.
Across Alabama, the Department of Public Safety has been awarded salaries for 15 officers, and the Mobile Police Department has received funding for 10 officers.
Grantees for the 2013 hiring program were selected based on their fiscal needs, local crime rates, and their community policing plans. There was an additional focus this year on agencies requesting assistance in developing school safety programs that would include the hiring of a school resource officer. School resource officer positions funded by the COPS Office are sworn law enforcement positions that work within a school district or facility, interacting directly with school administrators and students.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has awarded more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 125,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance.
For the entire list of grantees and additional information about the 2013 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.
Talladega County Man Agrees to Plead Guilty to Murder for HireRead the Press Release
BIRMINGHAM -- Federal prosecutors today charged a Talladega County man in connection with his efforts to hire a member of the Ku Klux Klan to murder a man he suspected of raping his wife, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
In a one-count information filed in U.S. District Court, the U.S. Attorney's Office charged ALLEN WAYNE DENSEN MORGAN, 29, of Munford, with using and causing someone else to use interstate facilities and travel -- a telephone and a motor vehicle -- with the intent to commit a murder-for hire. Morgan has agreed to plead guilty to the charge.
Federal officials arrested Morgan in August after he told undercover officers, whom he believed to be members of the KKK, that he would pay them to murder a black neighbor who Morgan's wife had accused of raping her, according to Morgan's plea agreement with the government. Morgan offered a watch, a necklace and a gun as payment for the murder and gave explicit details for the man's torture and murder, according to the plea agreement.
Morgan's efforts to arrange the paid murder of his neighbor unfolded as follows, according to his plea agreement:
Morgan talked to an undercover FBI agent by telephone on Aug. 22, who identified himself as a KKK member. The men arranged to meet three days later at an Oxford motel to discuss payment for the murder. In that phone conversation, Morgan used a racial slur to describe the man he wanted killed and bragged that he had just fired several shots toward the man to intimidate him. Morgan also described, in detail, how he wanted the man "hung from a tree like a deer and gutted," to have body parts cut off, and to "die a slow, painful death."
Morgan faces a maximum penalty of 10 years in prison and a $250,000 fine.
The FBI investigated the case, which Assistant U.S. Attorneys Pat Meadows and John B. Felton are prosecuting.
Former Executive Director Pleads Guilty to Theft from JCCEORead the Press Release
BIRMINGHAM – The former executive director of the Jefferson County Committee for Economic Opportunity (JCCEO) entered a guilty plea today to the theft of close to $500,000 from the non-profit organization, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
RUTH GAYLE CUNNINGHAM, 63, entered the guilty plea before United States District Judge L. Scott Coogler. Sentencing was set for January 22, 2014. She faces a maximum penalty of 10 years in prison and a $250,000 fine.
Cunningham’s daughter, KELLI E. CAULFIELD, 31, was charged with conspiracy in the scheme to defraud JCCEO and is set to enter a guilty plea on September 30, 2013.
In a related case, mortgage broker BRAD A. BOZEMAN, 34, of Hoover, also entered a guilty plea today to a charge of conspiracy to defraud a federally insured financial institution by either making or transmitting false statements and reports intended to influence a financial institution in connection with the sale of residential properties. Bozeman made false statements on loan applications by including false income or not revealing all debts and liabilities of the purchasers, and transmitting that information as true and accurate. He faces a maximum penalty of five years in prison and a $250,000 fine.
Cunningham was executive director of JCCEO for more than 20 years before resigning the job in March. The organization employed Caulfield from May 2009 to January 2013. JCCEO is a community action agency that administers programs, including Head Start, for low-income and disadvantaged residents.Cunningham acknowledged in her plea agreement that, between March 2009 and April 2010, she used JCCEO funds to make monthly mortgage payments on at least three residential properties she owned, and at least five residential properties her daughter owned, in Jefferson and Shelby counties. Cunningham also used JCCEO funds to pay property taxes on one of those properties, a house in Chelsea that she bought in 2007 with a mortgage loan of more than $1 million.
Cunningham also paid $293,413 in JCCEO funds to companies owned by her daughter, and to other contractors, for claimed repairs or renovations to the women's properties, according to their plea agreements.
The FBI discovered the fraud at JCCEO while it was investigating allegations of a mortgage fraud scheme. That investigation led to federal prosecutors' charges against Cunningham and Caulfield, as well as to charges of conspiracy to defraud federally insured financial institutions against a real estate investor now living in Atlanta, and mortgage broker Bozeman. Cunningham and Caulfield bought most of the properties that later became part of their scheme to defraud JCCEO from the Atlanta investor.
The FBI investigated the cases, which Assistant U.S. Attorney Robin Beardsley Mark is prosecuting.Man Charged with Distributing Heroin That Caused Tuscaloosa Overdose Death SurrendersRead the Press Release
BIRMINGHAM -- Two more defendants among 49 indicted in federal court for distributing heroin have turned themselves in to authorities following a Monday law enforcement roundup, announced U.S. Attorney Joyce White Vance and Drug Enforcement Administration Assistant Special Agent in Charge Clay A. Morris.
One of the men who surrendered Tuesday is HAROLD DONNELL MIMS, 31, of Birmingham, whose drug distribution charges include that he sold heroin on Feb. 21 and that "death resulted from the use of said heroin." The charge is related to the death of a 28-year-old man at a Tuscaloosa apartment complex.
The second defendant who surrendered on heroin distribution charges Tuesday is TERRANCE DESHAWN JOHNSON, 34, also of Birmingham.
Mims' and Johnson's arrests bring to 42 the number of defendants now in custody as part of a months-long Organized Crime Drug Enforcement Task Force operation to take heroin dealers off the streets. Seven defendants still are being pursued. One of those seven also is charged with selling heroin that caused a death. That case is related to the death of a 20-year-old University of Alabama student in Tuscaloosa.
The operation is part of a larger multi-agency Heroin Initiative launched early last year to attack the supply side of the growing heroin problem in the Northern District of Alabama. Multiple federal, state and local law enforcement agencies are involved in the ongoing initiative.
The public is reminded that an indictment contains only charges. It is the government's responsibility to prove a defendant's guilt, beyond a shadow of a doubt, at trial.
*NOTE: The total number of defendants in the roundup has been revised from 50 to 49.
Heroin Dealers Connected with Two Tuscaloosa Overdose Deaths Among 50 Defendants in Federal RoundupRead the Press Release
BIRMINGHAM -- Two Birmingham men charged in connection with the heroin overdose deaths of two young men in Tuscaloosa early this year are among defendants still being sought in an arrest roundup today that is part of an ongoing law enforcement effort to attack the supply side of the growing heroin problem in the Northern District of Alabama, announced U.S. Attorney Joyce White Vance and federal Drug Enforcement Administration Assistant Special Agent in Charge Clay A. Morris.
Special agents with DEA, FBI and the Bureau of Alcohol, Tobacco, Firearms and Explosives, along with U.S. Marshals, Gulf Coast High Intensity Drug Trafficking Area Task Force, and state and local police, fanned out across North Alabama this morning to arrest 50 people indicted over the past six months in an operation to take heroin dealers off the streets. As of this afternoon, 40 defendants are in custody on drug distribution charges. Arrests continue. This operation is part of a larger initiative, launched in Spring 2012, to track the sources of heroin in Jefferson, Shelby and Tuscaloosa counties and prosecute those responsible for trafficking the addictive drug that is killing people in increasing numbers.
Confirmed heroin overdose deaths in the three counties increased five-fold between 2008 and 2012, rising from 15 to 83. The majority of the 83 people who died in 2012 were in their 20s and 30s, but teenagers also are dying in increasing numbers.
"Seeking to enhance their illicit profits, drug dealers in our community have shifted their business to selling heroin, which is highly addictive," Vance said. "This shift has led to skyrocketing overdose death rates among young people. Our action today brings together federal, state and local law enforcement who have worked over the past year to interdict the supply of heroin and get the dealers who supply it to our youth off the streets and into federal prison," she said. "We have begun, and look forward to continuing to engage community leaders in efforts to raise awareness about the risks of heroin and combat the demand for it. This is a community-wide issue that parents, educators and medical professionals need to be aware of, along with law enforcement."
"Over the past several months, law enforcement in Northern Alabama has tirelessly investigated heroin trafficking," Morris said. "Our combined investigative and prosecutorial efforts should send a clear message to drug traffickers. That message is that law enforcement shares the common goal to protect our communities and children from those who sell poison. We will be relentless in our pursuit of those criminals who attempt to destroy the futures of our children," he said.
The two men in Tuscaloosa whose overdose deaths are now connected to heroin sold in Birmingham were 20 and 28 years old. Both men, the younger a University of Alabama student, died in the same Tuscaloosa apartment complex within the span of one month.
The two men being sought in connection with those deaths face charges that include distributing heroin "and death resulted from the use of said heroin."
Law enforcement agencies working with DEA in the months-long investigation leading to today's arrests include the Hoover, Pelham, Gardendale, Vestavia Hills, Tuscaloosa, Hueytown, Bessemer and Pleasant Grove police departments, Marshall County Drug Task Force, Gulf Coast HIDTA Task Force, Alabama Beverage Control Board, Alabama Bureau of Investigation, Jefferson and Shelby County sheriff's offices, and district attorney's offices for Jefferson, Shelby and Tuscaloosa counties and the Bessemer Cutoff.In drug-trafficking prosecutions in the Northern District in the past two years, separate from today's arrests, authorities have seized nearly five kilograms of heroin.
The government seized 2.5 kilograms of heroin and 40 kilograms of cocaine in one 2012 drug-trafficking case. A federal grand jury indicted 11 people in that case, including key defendants TONY SCALES, 54, of Birmingham, and WILBERT HANKINS, 43, of Hoover. All 11 have pled guilty to drug distribution charges. A federal judge has ordered the defendants, jointly, to forfeit $16 million to the government as proceeds of illegal activity.
Hankins and Scales both served time for prior convictions on federal drug charges and restarted their illicit business when they were released from prison about 2008. According to evidence in the case, Hankins had maintained contact with supply sources in California and secured large loads of drugs that were transported to Birmingham. Scales, operating mainly from a house in Ensley, used a network of distributors to sell the drugs.
Demand for heroin from Scales' customers steadily drove Hankins to include heroin with his shipments of cocaine. DEA agents seized the 2.5 kilograms of heroin and 40 kilograms of cocaine in April 2012 as it moved from California to Alabama.
A drug-trafficking conspiracy case investigated by the FBI and the Jefferson County Sheriff's Office led to the indictment and arrests of nine people in May and the seizure of two kilograms of nearly pure heroin and 1.5 kilograms of cocaine. That case focuses on a large-scale drug-distribution network in western Birmingham. Trial is pending for all nine defendants.
The public is reminded that indictments contain only charges. Defendants are presumed innocent and it is the government's responsibility to prove guilt beyond a reasonable doubt at trial.
*******MEDIA ADVISORY******* Press Conference to Announce Arrests in the Northern District's Ongoing Heroin Initiative to Attack Sources of the Highly Addictive and Deadly Drug in Our Communities.Read the Press Release
WHAT: Press conference
WHEN: MONDAY, Sept. 16, 2013
2 p.m.
WHERE: DEA Office
920 18th Street North
Birmingham, AL 35203
First FloorMedia should arrive approximately 30 minutes prior to press conference for set up.
NOTE: All media must show driver's license and valid media credentials. For additional information, contact Peggy Sanford at 205-244-2020, or [email protected].
Federal Prosecutors Charge Ninth Person in Scheme to Defraud BP Oil Spill Claims FundRead the Press Release
BIRMINGHAM – Federal prosecutors this week charged a Birmingham woman as part of a conspiracy to fraudulently take money from funds established to pay claims from individuals and businesses harmed by the 2010 Deepwater Horizon oil spill in the Gulf of Mexico, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
In an information filed Thursday in U.S. District Court, the U.S. Attorney's Office charged METILDA STEWARD GORDEN, 47, with conspiring in 2010 to participate in a scheme to defraud the Gulf Coast Claims Facility.
The U.S. Attorney's Office has now charged nine people with conspiring to defraud the oil spill claims funds, and seven have pled guilty.
British Petroleum, which owned the Macondo oil well where the Deepwater Horizon drilling rig exploded, established the Gulf Coast Claims Facility in June 2010 for the purpose of administering and settling claims resulting from the oil spill disaster. A subsidiary of BP established the Deepwater Horizon Oil Spill Trust Fund in August 2010 to pay certain types of claims and expenses from the oil spill, including claims settled through the GCCF.
Gorden is charged with independently agreeing to provide personal information, such as bank account information, to individuals who recruited her so that they could use her information to file fraudulent claims for lost wages with the GCCF. The recruiters are not named in the charging document. After the GCCF paid Gorden on the fraudulent claims, she returned part of the money to the individuals who recruited her to participate in the scheme, according to the information. Between November 2010 and August 2011, the GCCF paid about $65,786 into Gorden's bank account.The FBI is investigating these cases. Assistant U.S. Attorney Henry Cornelius is prosecuting the cases.
Undocumented Alien Indicted in Connection with Counterfeit Identification DocumentsRead the Press Release
BIRMINGHAM – A federal grand jury today indicted an undocumented Mexican national on charges involving counterfeit identification documents, announced U.S. Attorney Joyce White Vance and U.S. Immigration and Customs Enforcement's Homeland Security Investigations Special Agent in Charge Raymond R. Parmer Jr.
The indictment filed in U.S. District Court charges IVAN ALEJANDRO MARTINEZ-BARRON, 23, with one count of producing counterfeit Social Security and Permanent Resident cards. The indictment also charges Martinez-Barron with one count of possessing the equipment to produce such documents.
"We ask for continuing help and vigilance from the community to help us detect anyone providing false identity documents, as those identities might be used by people who wish to do our country harm," Vance said.Each count carries a maximum sentence of 15 years in prison and a $250,000 fine.
ICE-HSI investigated the case. Assistant U.S. Attorney Melissa K. Atwood is prosecuting the case.
The public is reminded that an indictment contains only charges. The defendant is presumed innocent, and it is the government's responsibility to prove guilt beyond a reasonable doubt at trial.
Huntsville Man Indicted for Series of Bank RobberiesRead the Press Release
BIRMINGHAM -- A federal grand jury today indicted a Huntsville man for 11 robberies or attempted robberies at banks across north central and north western Alabama, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.An indictment filed in U.S. District Court charges CEDRICK LAMOND HICKS, 32, with nine counts of bank robbery and two counts of attempted bank robbery. In all, the banks were robbed of more than $43,000. Most of the charges are for robberies or attempted robberies in 2012, while one charge is for a 2006 bank robbery and two are for bank robberies this year.
The date, location and amount of money stolen are as follows, according to the indictment:
• Dec. 13, 2006, Regions Bank, Madison Street, Huntsville, $3,074.
• Feb. 22, 2012, Regions Banks, Madison Street, Huntsville, $2,870.
• March 23, 2012, First Jackson Bank, Sutton Road, Huntsville, $1,894.
• April 30, 2012, Renasant Bank, U.S. 72 West, Madison, $3,500.
• Aug. 2, 2012, Peoples Bank, U.S. 431 South, Guntersville, $890.
• Aug. 8, 2012, Traditions Bank, Alabama 67 South, Decatur, $7,243.
• Nov. 27, 2012, Regions Banks, Lee Street, Rogersville, $8,009.
• Jan. 7, 2013, Peoples Trust Bank, Military Street South, Hamilton, $9,000.
• March 6, 2013, ServisFirst Bank, Meridian Street, Huntsville, $6,575.The attempted bank robberies were on Sept. 18, 2012, at Cadence Bank, U.S. 431, Albertville, and on Nov. 26, 2012, at Traditions Bank, Second Avenue NW, Cullman.
The maximum penalty for each robbery count is 20 years in prison and a $250,000 fine.
The FBI investigated the case, which Assistant U.S. Attorney Mary Stuart Burrell is prosecuting.
The public is reminded than an indictment contains only charges. A defendant is presumed innocent and it will be the government's responsibility to prove the defendant's guilt beyond a reasonable doubt at trial.
Fifth Adams Produce Official Charged in Scheme to Defraud U.S. GovernmentRead the Press Release
BIRMINGHAM – A fifth Adams Produce Company official now faces federal charges in a scheme to defraud the federal government, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
A federal grand jury today indicted MICHAEL JOHN O'BRIEN, 50, of Navarre, Fla., who was general manager of the Adams Produce distribution center in Pensacola, Fla. O'Brien's duties included determining the prices Adams Produce charged the United States under contracts it had with the government.
The 37-count indictment filed in U.S. District Court charges O'Brien with conspiracy to defraud the U.S. Department of Defense and its Defense Logistics Agency of hundreds of thousands of dollars. The indictment also charges O'Brien with 32 counts of wire fraud or aiding and abetting wire fraud, and with four counts of false claims or aiding and abetting false claims in order to carry out the conspiracy.
Four other Adams Produce officials – Scott David Grinstead, David Andrew Kirkland, Christopher Alan Pfahl and Stanley Joel Butler II – have pleaded guilty to charges in connection with defrauding the government.
Adams Produce was a Birmingham-based company that had been a leading distributor of fresh fruits and vegetables across the Southeast for many years. It was founded more than 100 years ago as a family-owned business. The family sold the company to executives and a private equity firm in 2010. Adams Produce closed abruptly and filed for bankruptcy in 2012.
The Department of Defense, through DLA, contracted with Adams Produce and other distributers to supply fresh fruits and vegetables to military bases, public school systems, junior colleges and universities. Adams Produce had contracts worth millions of dollars with the U.S. government, according to O'Brien's indictment. Under the contracts, the price the government paid Adams depended largely on what Adams had to pay its produce suppliers.
Each week, Adams Produce electronically submitted pricing information to DLA and was required, periodically, to submit purchase orders to DLA proving its costs, according to the indictment.
Adams bought from TLC, one of the largest distributors of fresh produce in the United States, with offices located across the country. Between August 2011 and November 2011, according to the indictment, O'Brien and other Adams employees arranged and conducted transactions with TLC in Marietta, Ga., designed to create purchase orders and invoices that reflected inflated costs to Adams Produce.
According to O'Brien's indictment, he and others continued the conspiracy as follows:
O'Brien communicated instructions, often by e-mail, to other Adams' employees concerning the inflated prices to show on the false purchase orders. Adams' employees and officers used the false purchase orders to support false pricing information the company submitted to DLA for payment. The transactions with TLC to produce false purchase orders and the false information submitted to DLA "were intended to increase Adams Produce's profit margins and inflate the income reported on Adams Produce's financial statements."
The maximum penalty for the conspiracy count is 10 years in prison and a $250,000 fine. The maximum penalty for each wire fraud count is 20 years in prison and a $250,000 fine, and the maximum penalty for each false claim count is five years in prison and a $250,000 fine.
Federal Grand Jury Indicts Blount County Men in Separate Child Pornography CasesRead the Press Release
BIRMINGHAM -- A federal grand jury today indicted two Blount County men in separate cases for distributing, receiving and possessing child pornography, which included images of children less than 12 years old, announced U.S. Attorney Joyce White Vance and Alabama Bureau of Investigation Chief Neil Tew.Independent indictments filed in U.S. District Court charge both JAMES HOWARD WILSON, 51, of Blountsville, and JEREMIAH C. KING, 32, of Springville, with using the Internet to distribute child pornography, receiving child pornography on a computer and possessing child pornography on a computer or computer media. King's possession charge involves images of children younger than 12. Wilson's possession and receiving charges involve images of children younger than 12. Wilson is charged with crimes occurring in 2012. King is charged with crimes occurring between March and May this year.
Distribution and receipt of child pornography each carry a minimum prison term of five years and a maximum of 20 years. The charges also carry a maximum $250,000 fine. Possessing and receiving child pornography that includes images of prepubescent children less than 12 years old both carry a maximum penalty of 20 years in prison and a $250,000 fine.
The Alabama Bureau of Investigation and its Internet Crimes Against Children Task Force investigated the cases. The U.S. Attorney's Office for the Northern District of Alabama is prosecuting the cases.
Members of the public are reminded that the indictment contains only charges. A defendant is presumed innocent of the charges and it will be the government's burden to prove a defendant's guilt beyond a reasonable doubt at trial.Birmingham Woman Sentenced for Multi-State Identity Theft ConspiracyRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Birmingham woman to more than six years in prison for her role in a multi-state identity-theft and counterfeit-check scheme that included recruiting homeless people to cash the fraudulent checks, announced U.S. Attorney Joyce White Vance, U.S. Postal Inspector in Charge Keith Morris, FBI Special Agent in Charge Richard D. Schwein Jr., and U.S. Secret Service Acting Special Agent in Charge Jeff Anderson.
DAPHNE COLLETTE TATE, 42, pleaded guilty in April to conspiring with five other people to defraud more than two dozen banks in Alabama, Georgia and Florida. She also pleaded guilty to aggravated identity theft, possessing a business check stolen from the U.S. mail, and possessing a counterfeit check. U.S. District Judge L. Scott Coogler sentenced her to six years and two months in prison for those crimes.
The five other defendants charged along with Tate in the multi-state identity-theft conspiracy are Tate's cousin, KEITH LAMAR REESE, 46, also of Birmingham, and four Atlanta-area residents, COLUNDRIA SEATS, 37, DEMARIO S. MORMON, 27, CLIFFTON A. MORMON, 30, and BRETT E. FALCONER, 27.
Reese and Falconer have pled guilty to conspiracy to commit bank fraud and aggravated identity theft. DeMario Mormon remains a fugitive. Seats was arrested in June; Cliffton Mormon was arrested in July, and their cases are proceeding toward trial.
According to Tate's indictment and other court records, Tate and other conspirators conducted their scheme in Alabama, Georgia and Florida between September 2011 and February 2013 as follows:
They obtained account and routing information for various businesses’ legitimate checking accounts in at least 25 banks through various means, including stealing checks from the mail and engaging people who had access to account information. Falconer was employed by Regions Bank and accessed the bank’s records for the conspiracy during her employment. Falconer provided co-conspirators with information from Regions’ accounts and from checks presented at Regions Bank. Other conspirators, including Demario and Cliffton Mormon, used that genuine account and routing information to manufacture counterfeit business checks.
Tate, Seats and Reese would locate people, often the homeless, who had government-issued identification cards and would join the conspiracy as check-cashers. Tate, Seats, Reese and other co-conspirators would transport the check-cashers to locations where they would cash or attempt to cash the counterfeit checks. Members of the conspiracy would divide the proceeds of the successfully cashed checks among themselves.
This case was investigated by the U.S. Postal Inspection Service, the FBI, the U.S. Secret Service, and the Pelham, Trussville and Vestavia Hills police departments, with assistance from Regions Bank corporate investigators. Assistant U.S. Attorney Melissa K. Atwood is prosecuting the case.Anniston Man Arrested and Charged with Murder for HireRead the Press Release
BIRMINGHAM -- An Anniston man has been charged in federal court with using a telephone and a motor vehicle in an effort to hire someone to kill a man he suspected of raping his wife, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
Federal officials arrested ALLEN WAYNE DENSEN MORGAN, 29, on Sunday in Oxford, Ala., after he told undercover officers, whom he believed to be members of the Ku Klux Klan, that he would pay them to murder a Munford man, according to a federal criminal complaint filed today in U.S. District Court. Morgan was in the custody of U.S. Marshals on Monday.
Morgan talked to a man by phone on Aug. 22, who identified himself as a KKK member, and the two men arranged the Sunday meeting at an Oxford restaurant to discuss payment for the murder-for-hire, according to the complaint. In the Aug. 22 phone conversation, Morgan made explicit threats of how he wanted the man to be tortured and to die a slow, painful death, according to the complaint. Morgan also said he had already confronted the man near his Munford residence and fired several shots toward him to intimidate him, according to the complaint.
The FBI is investigating the case.
Government Contractor in Huntsville Pleads Guilty in $14 Million Fraud SchemeRead the Press Release
BIRMINGHAM – A federal government contractor in Huntsville pleaded guilty today in federal court to charges related to a scheme to defraud the government of nearly $14 million in contract payments over six years.JOSEPH SHANE TERRY, 40, of Meridianville, Ala., and sole owner of Government Technical Services, entered his plea before U.S. District Judge R. David Proctor to charges of wire fraud, false statements to the Small Business Administration, false statements on loan applications, and money laundering. As part of his plea agreement, Terry is to forfeit a minimum of $1 million to the government as proceeds of illegal activity. No sentencing date has been set.
U.S. Attorney Joyce White Vance; Internal Revenue Service, Criminal Investigation, Special Agent in Charge Veronica Hyman-Pillot; Department of the Army, Criminal Investigation Command Special Agent in Charge James Wallis; Department of Defense, Defense Criminal Investigative Service Special Agent in Charge John F. Khin; and Small Business Administration Inspector General Peggy E. Gustafson announced the plea.
"This case was the result of a four-year investigation involving multiple federal investigative agencies," Vance said. "Fraud against the government costs every taxpayer and harms communities, such as Huntsville, whose economy relies heavily on the defense industry. We are committed to investigating and prosecuting fraud by defense contractors against the United States," she said.
According to Terry's plea agreement, he carried out his scheme to defraud the government as follows:
In 2003, Terry applied for and obtained a small disadvantaged or minority-owned business status from the SBA by submitting fraudulent tax returns. In order to maintain that status, Terry also submitted false tax returns to the SBA for each year from 2004 through 2008. Having the special status with the SBA enabled GTS to bid on and win government contracts specifically set aside for small disadvantaged businesses.
Terry submitted personal and corporate returns to the SBA for the tax years 2002 through 2007 to show he was current on filing his taxes, but he had never filed the returns with the IRS.
Terry's wire fraud scheme culminated in GTS obtaining a $961,551 contract in September 2006 to install metal roofing on three buildings at Fort Polk, La. In order to obtain authorization to start work on this contract, GTS submitted forged performance and payment bonds and a power of attorney from a Mississippi bond company and its parent surety company in Louisiana. GTS won the contract, but was terminated in April 2008 for failing to perform the work and for providing fraudulent bonds. In all, Terry employed the scheme to fraudulently obtain more than $14 million in government contracts.
Terry pleaded guilty to five wire fraud counts that involved separate electronic fund transfers totaling more than $500,000. The money was transferred from the Defense Finance and Accounting Service in Indiana, an agency of the Department of Defense, to a bank account of Terry's in Huntsville in 2007. The five transfers were all payments to GTS on the Fort Polk roofing contract.
Terry also pleaded guilty to three counts of mortgage fraud in the Madison County area by inducing banks to make mortgage loans totaling $480,000 based on his false tax returns and other false financial documents.
The money laundering that Terry pleaded guilty to is related to one of the false statements he made on a loan application. Terry admitted that in 2008 he induced his then-girlfriend to apply for a loan and supplied documents falsely claiming that GTS employed her. Terry admitted to money laundering for using the fraudulently obtained loan proceeds for his own purposes.
The normal statute of limitations on fraud against the United States is five years. However, certain charges in this indictment were prosecuted under the Wartime Suspension of Limitations Act, which operates to suspend the statute of limitations for crimes involving fraud against the Government during a time when the United States is at war or there is an Authorization for Use of Military Force in effect, such as for Afghanistan and Iraq. This case represents the first time that this suspension statute has been used in this district.
Terry faces a maximum penalty of 30 years in prison and a $1 million fine.
IRS, Criminal Investigations; U.S. Army Criminal Investigation Command; SBA, Office of Inspector General; and Department of Defense, Defense Criminal Investigative Service, investigated the case. Assistant U.S. Attorneys David Estes and Jennifer Murnahan are prosecuting the case.
Winston County Man Sentenced to Five Years in Prison for Arson at Poultry Company OfficeRead the Press Release
TUSCALOOSA – A federal judge today sentenced a Northwest Alabama man to five years in prison for a December fire at a Marshall Durbin office building in Haleyville, announced U.S. Attorney Joyce White Vance and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Jeffrey L. Fulton.
U.S. District Judge L. Scott Coogler sentenced CHARLES WILLIAM HEAVNER JR., 43, of Hackleburg, on one count of maliciously damaging the Marshall Durbin Field Operations Office with fire on Dec. 4. Heavner pleaded guilty to the charge in April. Heavner must pay the poultry company $500 in restitution. He will remain on supervised release for three years after completing his prison sentence.
According to Heavner's plea agreement and other court documents, the arson took place as follows:
Marshal Durban had not provided baby chicks for Heavner to raise because of maintenance problems with the chicken housing facilities on his farm. Heavner was angry about that decision on the morning of Dec. 4 and had threatened physical violence against the company's broiler manager, Joe Bolding. Bolding called an employee at the operations office, warned her of Heavner's threats and told her to lock the office door. As she did so, she saw Heavner pull into the parking lot, take an orange five-gallon bucket and a walking cane from his truck and approach the building with liquid sloshing out of the bucket. She told him he could not come in, but after she locked the door, he tried to kick it in.
Employees outside the office building who were called to help arrived to find the front of the building on fire. They used fire extinguishers to put out the flames. The orange bucket was recovered in the back of a company truck parked near the building and Heavner's cane and a cigarette lighter were found beside the building. Traces of gasoline were discovered in the bucket.
Heavner fled and was later arrested in Oklahoma.
The ATF, Alabama State Fire Marshal, U.S. Marshals Service, and the Winston County Sheriff's Office investigated the case. Assistant U.S. Attorney Michael W. Whisonant Sr. prosecuted the case.
Twenty-two People Charged with Firearm and Drug Violations in TuscaloosaRead the Press Release
TUSCALOOSA -- Federal Bureau of Alcohol, Tobacco, Firearms and Explosives agents working with local and state partners today completed a roundup of 22 individuals charged with violating federal and state firearms and narcotics laws, announced U.S. Attorney Joyce White Vance, ATF Special Agent in Charge Jeffrey Fulton, Tuscaloosa Police Chief Steven D. Anderson and Tuscaloosa County Sheriff's Lt. Andy Norris.This on-going law enforcement partnership has led to the indictment of 20 individuals on federal charges and two individuals on state charges. Six of the 22 defendants were arrested today in the Tuscaloosa area.
"Today ATF partnered with the Tuscaloosa Police Department and the Tuscaloosa County Sheriff's Office to take some of the worst offenders off the streets in areas that have become saturated with violent crime," Vance said. "As Americans, we all have Second Amendment rights, but this does not mean we should or will tolerate the use of firearms by criminals. People in our community who use guns to commit violent acts or to further drug crimes need to know there are federal prison cells waiting on them," she said.
"ATF's Frontline strategy utilizes every available resource to make our communities a safer place to live," Fulton said. "Violent criminals and gang members continue to use firearms as their tools of the trade to prey upon communities," he said.
"The Tuscaloosa Police Department is pleased to get these offenders out of our community and see them be held responsible for the crimes they have committed," Anderson said . "This has been an ongoing investigation and we are thankful that the U.S. Attorney's Office is prosecuting the cases. Working with the ATF and other law enforcement agencies to keep Tuscaloosa a safe community will always be a top priority," he said.
Thirteen people were arrested in the operation before today. Three remain to be arrested.
Arrested today were:
Matthew Sims, 27, McCalla.
Michael Barrett, 42, Gordo.
Florencewel Welch, 38, Tuscaloosa.
Timothy Wooley, 20, Tuscaloosa.
Raregus Rice, 29, Tuscaloosa.
LaJohnagan Sterling, 22, Tuscaloosa.Prosecutors Charge Former JCCEO Official and Her Daughter with Near $500,000 Theft from AgencyRead the Press Release
BIRMINGHAM – The U.S. Attorney's Office has charged the former executive director of the Jefferson County Committee for Economic Opportunity and her daughter in connection with the theft of close to $500,000 from the non-profit organization, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
In separate informations filed in U.S. District Court, federal prosecutors charged RUTH GAYLE CUNNINGHAM, 63, with theft from a government program that had received more than $10,000 in federal funding or assistance, and charged her daughter, KELLI E. CAULFIELD, 31, with conspiracy in the scheme to defraud JCCEO.
Cunningham was executive director of JCCEO for more than 20 years before resigning the job in March. The organization employed Caulfield from May 2009 to January 2013. JCCEO is a community action agency that administers programs, including Head Start, for low-income and disadvantaged residents.
"JCCEO is an organization with 50 years of history helping some of our poorest citizens become part of the American Dream with education and assistance funded in part by federal taxpayer dollars," Vance said. "Cunningham abused the trust and discretion she was given to use this money wisely to benefit those in our community who are struggling. She used the agency's government funds as a personal piggy bank so that she and her daughter could line their pockets with hundreds of thousands of dollars intended to lift others out of poverty," Vance said. "As a community, we have to demand better from those who are charged with using public money for the benefit of all. I encourage anyone aware of this type of abuse of the public trust to contact the U.S. Attorney Office or the FBI."
“Serving the public is a privilege, not an opportunity for unjust personal enrichment," Schwein said. "Those who are entrusted to administer public programs, such as Ms. Cunningham, are expected to serve with integrity and honor. Greed and self-interest have no place in service to the community, and the FBI will continue to root out public corruption wherever we find it and at whatever level we find it,” he said.Cunningham and her daughter, both of Birmingham, have signed agreements with the government to plead guilty to the charges against them. Jointly, Cunningham and Caulfield are responsible for repaying $492,195 to JCCEO, according to their plea agreements. Cunningham agrees to pay that full amount to JCCEO. Caulfield's plea agreement cites her responsibility to repay $253,499 to JCCEO.
Cunningham acknowledges in her plea agreement that, between March 2009 and April 2010, she used JCCEO funds to make monthly mortgage payments on at least three residential properties she owned, and at least five residential properties her daughter owned, in Jefferson and Shelby counties. Cunningham also used JCCEO funds to pay property taxes on one of those properties, a house in Chelsea that she bought in 2007 with a mortgage loan of more than $1 million, according to court records.Cunningham also paid $293,413 in JCCEO funds to companies owned by her daughter, and to other contractors, for claimed repairs or renovations to the women's properties, according to their plea agreements.
As part of Caulfield's conspiracy, she acknowledges in her plea agreement that she created invoices citing repair or improvement work on the private properties and gave them to her mother, who submitted the invoices and corresponding check requests to the JCCEO finance director.
As executive director of JCCEO, Cunningham had check-signing authority up to $5,000. All of the invoices Caulfield prepared for her mother to submit for payment by JCCEO were below $5,000 and, therefore, required no second signature from a JCCEO board member on the agency's checks.
The maximum penalty for theft from a federally funded program is 10 years in prison and a $250,000 fine. The maximum penalty for conspiracy to defraud a federally funded program is five years in prison and a $250,000 fine.The FBI discovered the fraud at JCCEO while it was investigating allegations of a mortgage fraud scheme. That investigation led to federal prosecutors' charges against Cunningham and Caulfield, as well as to charges of conspiracy to defraud federally insured financial institutions against a real estate investor now living in Atlanta, and a Hoover mortgage broker. Cunningham and Caulfield bought most of the properties that later became part of their scheme to defraud JCCEO from the Atlanta investor.
The federal charges and associated plea agreements in all four cases were unsealed today in federal court in Birmingham.
The investor, the Rev. ROBERT PAUL HOLLMAN, 48, formerly of Dothan, and mortgage broker BRAD A. BOZEMAN, 34, of Hoover, are charged with conspiracy to defraud a federally insured financial institution by either making or transmitting false statements and reports intended to influence a financial institution in connection with the sale of residential properties.
Hollman agrees to pay $393,440 in restitution to banks affected by his scheme and Bozeman agrees to pay restitution of $41,460.
According to Hollman's and Bozeman's plea agreements, their mortgage fraud conspiracy took place as follows:
Hollman bought multiple residential properties in Jefferson and Shelby counties and, beginning about 2007, solicited people to buy the properties from him. He would agree, in advance of closing on the sales, to pay all or a portion of the down payments on the property and, afterward, to pay the monthly mortgage payments until the properties resold. Once Hollman had an agreement with a purchaser, or "borrower," he referred them to Bozeman to arrange a mortgage loan.
Hollman profited from the transactions because his debt on the properties was satisfied at closing and, in most of the transactions, he also received a cash payment from the sales. After a period of time, he would stop providing the borrowers money for the monthly mortgage payments and most of the properties ended up in foreclosure.
Hollman made false statements on mortgage documents by failing to disclose that he, not the borrower, was making the down payment or part of the down payment on the property. Bozeman made false statements on loan applications by including false income or not revealing all debts and liabilities of the purchasers, and transmitting that information as true and accurate.
The maximum sentence for conspiracy to defraud a federally insured financial institution is five years in prison and a $250,000 fine.
The FBI investigated the cases, which Assistant U.S. Attorney Robin Beardsley Mark is prosecuting.
Two Birmingham Women Indicted for Possessing Stolen MailRead the Press Release
BIRMINGHAM -- A federal grand jury late Tuesday indicted two Birmingham women in connection with mail stolen from residential mailboxes in Trussville, announced U.S. Attorney Joyce White Vance and U.S. Postal Inspector Frank Dyer.
An indictment filed in U.S. District Court charges SHAYLA MONIQUE DAUGHTRY, 22, and TOYA LAPARRIS SHEPARD, also 22, with possessing stolen mail and clothing removed from a package that had been stolen from the mail on July 27.
The maximum penalty for possessing stolen mail is five years in prison and a $250,000 fine.
The U.S. Postal Inspection Service investigated the case, with assistance from Trussville Police. Assistant U.S. Attorney Melissa K. Atwood is prosecuting the case.
The public is reminded that an indictment contains only charges. It will be the government's responsibility to prove the charges beyond a reasonable doubt at trial.
Three Northeast Alabama Residents Indicted for Distributing MethamphetamineRead the Press Release
BIRMINGHAM -- A federal grand jury late Tuesday indicted three northeast Alabama residents for conspiracy to distribute methamphetamine in Marshall County, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
An indictment filed in U.S. District Court charges ANGELA NICOLE HOLLAND, 39, CHESTER LYNN DAVIDSON, 60, both of Albertville, and ROBERT BRADLEY FUSSELL, 38, of Boaz, with conspiring to distribute and to possess with intent to distribute at least 50 grams of the controlled substance, methamphetamine, between November 2012 and February.
The indictment also charges Davidson with two individual counts of distributing methamphetamine, on Jan. 29 and Jan. 30. It charges Fussell with one count of possessing methamphetamine with intent to distribute the drug on Jan. 30, and charges Holland with one count of distributing methamphetamine on Feb. 15 and with possessing with intent to distribute five grams or more of the drug on that date.
The conspiracy charge carries a penalty of 10 years to life in prison and a fine of up to $10 million. The charges of possessing with intent to distribute or distributing methamphetamine carry a maximum penalty of 20 years in prison and a $1 million fine. Possessing with intent to distribute at least five grams of methamphetamine carries a possible prison sentence of five to 40 years and a maximum $5 million fine.
The FBI investigated the case, which Assistant U.S. Attorney Laura D. Hodge is prosecuting.
The public is reminded that an indictment contains only charges. It will be the government's responsibility to prove the charges beyond a reasonable doubt at trial.
Huntsville Man Indicted on Child Pornography ChargesRead the Press Release
BIRMINGHAM -- A federal grand jury late Tuesday indicted a Huntsville man on child pornography charges, announced U.S. Attorney Joyce White Vance and Alabama Bureau of Investigation Chief Neil Tew.
An indictment filed in U.S. District Court charges RICKY ALAN KLEMMER, 60, with distributing, receiving and possessing child pornography.
Count One charges that Klemmer used a computer to distribute child pornography over the Internet between February and June in Madison County. Count Two charges that he received child pornography by computer between November 2011 and July 2013, and Count Three charges Klemmer with possessing child pornography between May and July this year.
The maximum penalty for both distributing child pornography and receiving child pornography is 20 years in prison and a $250,000 fine. Those charges carry a minimum sentence of five years in prison. Possessing child pornography carries a maximum sentence of 10 years in prison and a $250,000 fine.
The ABI investigated the case. Assistant U.S. Attorney Chinelo Diké-Minor is prosecuting the case.
The public is reminded that an indictment contains only charges. It will be the government's responsibility to prove guilt beyond a reasonable doubt at trial.
Federal Judge Finds Tuscaloosa County Man Guilty of Sexual Exploitation of A Child and Possessing Child PornographyRead the Press Release
TUSCALOOSA – A federal judge today found a Tuscaloosa County man guilty of sexually exploiting a child and possessing child pornography, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Richard D. Schwein Jr. and Tuscaloosa County Sheriff Billy Sharp.
U.S. District Judge L. Scott Coogler found MURRY MALONE BAILEY, 63, guilty on four counts of sexual exploitation of a child and one count of possessing child pornography. The case was tried without a jury before Judge Coogler at the request of the defense.
Evidence at trial showed that on four occasions Bailey induced the child victim, who was 15 years old, to engage in sexually explicit conduct so he could produce video images. For example, the child victim testified about how Bailey coerced and induced her into performing the sexual conduct in a specific room of his home, and the evidence showed how the defendant mounted a camera to record that conduct. Other evidence showed Bailey making sexually explicit comments about what sexual acts he intended to do to the child victim.
No sentencing date has been set.
The maximum penalty for sexually exploiting a child is 30 years in prison and a $250,000 fine, for each count, and carries a statutory minimum penalty of 15 years in prison. The maximum penalty for possessing child pornography is 10 years in prison and a $250,000 fine.
The Tuscaloosa Sheriff’s Office, the Tuscaloosa Police Department, and the FBI investigated the case. Assistant U.S. Attorneys Daniel Fortune and Amanda Wick prosecuted the case.
Former U.S. Postal Letter Carrier Convicted of Disability FraudRead the Press Release
ANNISTON – A federal jury last week convicted a former U.S. Postal Service letter carrier for a series of offenses related to workers’ compensation fraud, announced U.S. Attorney Joyce White Vance and Special Agent in Charge Max Eamiguel, Southern Area Field Office, U.S. Postal Service, Office of Inspector General.
The jury deliberated about six hours before convicting SEAN ERIC SLATON, 40, of Anniston, on eight counts of false statements in connection with the Workers’ Compensation Program, 24 counts of Wire Fraud, and one count of theft of government property. The jury returned the verdict following a seven-day trial before U.S. District Judge Karon O. Bowdre.
"Government employees who lie and cheat to receive benefit funds that have been set aside to support injured and disabled workers are stealing from U.S. taxpayers and should expect to be prosecuted," Vance said.
“The federal workers’ compensation program is established to assist those individuals with disabilities arising from an on-the-job injury," Eamiguel said. "In 2012, the Postal Service paid $1.3 billion in costs associated with the workers’ compensation program. The vast majority of postal employees who are receiving these benefits are truly disabled and need this valuable government program to recover and eventually return to work. There are some employees, however, who abuse the system and attempt to fraudulently obtain benefits to which they are not entitled," he said. "The U.S. Postal Service, Office of Inspector General, is dedicated to investigate such instances and, with the assistance of the U.S. Attorney’s Office, prosecute those individuals to the fullest extent of the law.”
Slaton began receiving payments from the Department of Labor Office of Workers’ Compensation Programs in 2002 after he was deemed disabled from a 2001 vehicle accident that occurred while he was working as a city letter carrier in Birmingham. He was charged with devising a scheme to defraud the Department of Labor and the Postal Service beginning in July 2011 by reporting false information to the Postal Service and Department of Labor and misrepresenting and concealing his physical abilities and limitations. During the course of the investigation, Slaton was observed engaging in physical activities that exceeded his prescribed medical restrictions. Slaton also was charged with filing false reports that misrepresented his income, employment, and business activities in 2009, 2010, 2011 and 2012.The U.S. Postal Service, Office of Inspector General, investigated the case, which was prosecuted by the U.S. Attorney’s Office for the Northern District of Alabama.
Gadsden Man Convicted of Bank RobberyRead the Press Release
Birmingham – A federal jury on Wednesday convicted a Gadsden man of bank robbery and conspiracy, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
The jury convicted MARCUS TYSHUN PORTER, 33, of joining in a conspiracy and acting as a lookout during the July 16, 2008, robbery of the Wachovia Bank in Lenlock, Alabama. Two of Porter’s co-conspirators have already been convicted in the Northern District of Alabama of this robbery and of carjacking. Immediately after robbing the bank, the co-conspirators forced two women at gunpoint to drive them back to Gadsden, where they met up with Porter and split up the proceeds. Previously convicted for this bank robbery were GABRIEL RICE, WILLIS LEACH, and JESSE KEY. U.S. District Judge Abdul K Kallon scheduled Porter’s sentencing for November 7, 2013.
“All of the people responsible for these horrible and violent crimes have finally been brought to justice,” Vance said. “This case is part of a larger investigation involving a string of bank robberies occurring in Gadsden and the surrounding area since 2007. I commend the FBI and the entire Etowah County law enforcement community for their efforts over the past five years to solve these crimes,” she said.
The maximum sentence for these crimes is 25 years in prison and a $250,000 fine.
The FBI investigated the case, and it was prosecuted by Assistant U.S. Attorney L. James Weil Jr. and Special Assistant U.S. Attorney E. Wilson Hunter.
Former Warrior Bank Employee Sentenced to 27 Months in Prison for EmbezzlementRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Hayden woman to more than two years in prison for embezzling from the Warrior bank where she worked, announced U.S. Attorney Joyce White Vance and U.S. Secret Service Special Agent in Charge Roy Sexton.
U.S. District Judge James H. Hancock sentenced FRANCES DUCKWORTH, 51, to 27 months in prison for embezzling from Superior Bank and its successors between November 2009 and August 2012. Duckworth worked as head teller at the Warrior bank branch during that time. The bank is now Cadence Bank. Duckworth must forfeit $202,994 to the government as proceeds of illegal activity. She also must pay the same amount in restitution to the victim and serve five years of supervised release following completion of her prison term.
Duckworth pleaded guilty to the embezzlement in March. According to her plea agreement with the government, Duckworth skimmed about $94,994 from deposit transactions between November 2009 and April 2011 at Superior Bank. After the bank became Cadence Bank, Duckworth took about $107,999 from deposit transactions between April 2011 and August 2012.
The Secret Service investigated the case, which Assistant U.S. Attorney Henry Cornelius prosecuted.
Three More Charged in Scheme to Defraud BP Oil Spill Claims FundRead the Press Release
BIRMINGHAM – Federal prosecutors this week charged three more people as part of a conspiracy to fraudulently take money from funds established to pay claims from individuals and businesses harmed by the 2010 Deepwater Horizon oil spill in the Gulf of Mexico, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.In separate informations filed Monday in U.S. District Court, the U.S. Attorney's Office charged JEREMY JAMAL BELL, 24, and ANTHONY KEITH BIVINS, 42, both of Birmingham, and CAMETRICA L. MENIFIELD, 31, of Bessemer, with conspiring in 2011 to participate in a scheme to defraud the Gulf Coast Claims Facility. Combined, the three defendants were paid about $138,881 from the oil spill claims funds. All three defendants have signed plea agreements with the government expressing their intention to plead guilty to the charges.
The U.S. Attorney's Office has now charged eight people with conspiring to defraud the oil spill claims funds, and the first five have pled guilty.
British Petroleum, which owned the Macondo oil well where the Deepwater Horizon drilling rig exploded, established the Gulf Coast Claims Facility in June 2010 for the purpose of administering and settling claims resulting from the oil spill disaster. A subsidiary of BP established the Deepwater Horizon Oil Spill Trust Fund in August 2010 to pay certain types of claims and expenses from the oil spill, including claims settled through the GCCF.
Bell, Bivins and Menifield are each charged with independently agreeing to provide personal information, such as Social Security numbers and bank account information, to individuals who recruited them so that they could use the information to file fraudulent claims for lost wages with the GCCF. The recruiters are not named in the charging documents. After the fraudulent claims were paid to Bell, Bivins and Menifield, each of them returned part of the money to the individuals who recruited them to participate in the scheme, according to the informations and plea agreements.The GCCF paid Bell $42,877 from the Deepwater Horizon Oil Spill Trust Fund on Aug. 9, 2011, according to the court documents. Later that month, Bell withdrew $42,402 from his account and gave it to the person who recruited him to participate in the scheme, according to the documents.
Bivins received about $61,987 in claim funds in October 2011. On Oct. 29, 2011, according to his information and plea agreement, he cashed the claims check, used some of it to buy money orders and a prepaid $5,000 debit card, as directed, and turned it all over to a co-conspirator. He was given $5,000 and the prepaid debit card in return.
Menifield received about $34,023 from the GCCF on July 21, 2011, according to her information and plea agreement. On July 22, 2011, she gave about $24,000 to a co-defendant and kept about $10,000, according to the documents.
The FBI investigated these cases. Assistant U.S. Attorney Henry Cornelius is prosecuting the cases.
Birmingham Man Sentenced to Nearly 12 Years in Prison for Armed Pharmacy RobberiesRead the Press Release
Birmingham Man Sentenced to Nearly 12 Years in Prison for Armed Pharmacy Robberies
BIRMINGHAM – A federal judge today sentenced a Birmingham man to nearly 12 years in prison for armed robberies at two pharmacies in the Birmingham metro area, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
U.S. District Judge Abdul K. Kallon sentenced STERLING EDWARDS, 20, to four years and nine months in prison for the Oct. 13, 2011, armed robbery of Campbell’s Pharmacy on Veterans Memorial Drive in Adamsville, and the March 13, 2012, armed robbery of Helena Hometown Pharmacy on Shelby County 17 in Helena. Kallon sentenced Edwards to an additional seven years in prison for brandishing a gun during the Helena robbery. Brandishing a weapon during a crime of violence carries a mandatory seven-year prison sentence that must be served consecutively to any other sentence imposed for the crime. Edwards pleaded guilty to the crimes in February.
“This defendant, and co-defendants in this case, all endangered innocent people in their violent quest to steal prescription narcotics, which are the most abused substances in our country,” Vance said. “Violent criminals like this must be taken off our streets.”
“Violent criminals who use guns to threaten lives during robberies and other crimes can expect to be held accountable for their illegal acts,” Schwein said. “The FBI is committed to working with its law enforcement partners to ensure the safety of our communities.”
Edwards, his uncle, Willie Edwards, 39, also of Birmingham, and Anthony Young, 21, of Hueytown, were all charged in a November indictment. Sterling Edwards and Young were both charged in the Helena pharmacy robbery. Willie Edwards and Young were both charged in a July 30, 2011, armed robbery of Moore’s Pharmacy on Ensley Avenue in Birmingham.
Willie Edwards pleaded guilty to the Ensley pharmacy robbery and to brandishing a gun in that robbery. He was sentenced to 20 years and one month in prison. Young’s case has been continued.
According to court documents, Sterling Edwards entered Campbell’s Pharmacy in Adamsville on the morning of Oct. 13, 2011, along with his uncle. Both men pulled guns, demanded money and drugs and threatened to kill the four employees, including the pharmacist, if they did not comply.
In the Helena pharmacy robbery, Sterling Edwards entered the store on the morning of March 13, 2012, with Young, and both brandished weapons, according to court records. Sterling Edwards ordered the pharmacist to open the cash register and to get drugs containing the narcotic pain-killer, Oxycontin. The robbers ordered the pharmacy employees to lie on the floor and threatened to kill them if they got up, according to court documents.
The FBI and Birmingham Police Department investigated the case. Assistant U.S. Attorney Joseph P. Montminy and Robin B. Mark are prosecuting the case.
Birmingham Man Sentenced to Nearly 12 Years in Prison for Armed Pharmacy RobberiesRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Birmingham man to nearly 12 years in prison for armed robberies at two pharmacies in the Birmingham metro area, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
U.S. District Judge Abdul K. Kallon sentenced STERLING EDWARDS, 20, to four years and nine months in prison for the Oct. 13, 2011, armed robbery of Campbell’s Pharmacy on Veterans Memorial Drive in Adamsville, and the March 13, 2012, armed robbery of Helena Hometown Pharmacy on Shelby County 17 in Helena. Kallon sentenced Edwards to an additional seven years in prison for brandishing a gun during the Helena robbery. Brandishing a weapon during a crime of violence carries a mandatory seven-year prison sentence that must be served consecutively to any other sentence imposed for the crime. Edwards pleaded guilty to the crimes in February.
“This defendant, and co-defendants in this case, all endangered innocent people in their violent quest to steal prescription narcotics, which are the most abused substances in our country,” Vance said. “Violent criminals like this must be taken off our streets.”
“Violent criminals who use guns to threaten lives during robberies and other crimes can expect to be held accountable for their illegal acts,” Schwein said. “The FBI is committed to working with its law enforcement partners to ensure the safety of our communities.”
Edwards, his uncle, Willie Edwards, 39, also of Birmingham, and Anthony Young, 21, of Hueytown, were all charged in a November indictment. Sterling Edwards and Young were both charged in the Helena pharmacy robbery. Willie Edwards and Young were both charged in a July 30, 2011, armed robbery of Moore’s Pharmacy on Ensley Avenue in Birmingham.
Willie Edwards pleaded guilty to the Ensley pharmacy robbery and to brandishing a gun in that robbery. He was sentenced to 20 years and one month in prison. Young’s case has been continued.
According to court documents, Sterling Edwards entered Campbell’s Pharmacy in Adamsville on the morning of Oct. 13, 2011, along with his uncle. Both men pulled guns, demanded money and drugs and threatened to kill the four employees, including the pharmacist, if they did not comply.
In the Helena pharmacy robbery, Sterling Edwards entered the store on the morning of March 13, 2012, with Young, and both brandished weapons, according to court records. Sterling Edwards ordered the pharmacist to open the cash register and to get drugs containing the narcotic pain-killer, Oxycontin. The robbers ordered the pharmacy employees to lie on the floor and threatened to kill them if they got up, according to court documents.
The FBI and Birmingham Police Department investigated the case. Assistant U.S. Attorney Joseph P. Montminy and Robin B. Mark are prosecuting the case.
Fourth Adams Produce Official Charged in Scheme to Defraud U.S. GovernmentRead the Press Release
BIRMINGHAM – The U.S. Attorney's Office has charged a fourth official of Adams Produce Company in a scheme to defraud the federal government of $481,000, announced U.S. Attorney Joyce White Vance FBI Special Agent in Charge Richard D. Schwein Jr. and IRS Criminal Investigation Division Special Agent in Charge Veronica Hyman-Pillot.Prosecutors this week filed an information in U.S. District Court charging STANLEY JOEL BUTLER II, a former purchasing agent for Adams, with conspiracy to defraud the United States. In an agreement with the government, also filed this week, Butler agrees to plead guilty to the conspiracy charge and, along with co-conspirators in the case, to pay $481,000 in restitution to the government.
"In an attempt to address Adams Produce's deteriorating financial situation, officers and employees of the company resorted to fraud. That fraud harmed Adams employees, customers and U.S. taxpayers," Vance said. "We are holding the perpetrators accountable for the crimes that were committed."
Three other officials of Adams Produce – Scott David Grinstead, David Andrew Kirkland and Christopher Alan Pfahl – have been charged and pleaded guilty in connection with fraud at the Birmingham-based company that had been a leading distributor of fresh fruits and vegetables across the Southeast for many years. Adams Produce was founded as a family-owned business more than 100 years ago. The family sold the company to executives and a private equity firm in 2010. The company shut down and filed for bankruptcy in 2012.
Butler, 42, of Trussville, worked at the corporate office in Birmingham and reported to Kirkland, the company's director of purchasing. Butler's duties included gathering produce pricing information from other Adams employees, including Kirkland, Phafl and the general manager of the company's Pensacola, Fla., distribution center, according to Butler's plea agreement. Butler also prepared a weekly pricing catalog that was submitted to the government.
The federal government, through the Defense Supply Center Philadelphia, was one of Adams' customers. The supply center contracted with Adams Produce to provide fresh fruits and vegetables to military bases, public schools systems, junior colleges and universities. Adams Produce entered into contracts with the government worth millions of dollars, according to court records.
Butler, along with Pfahl and Kirkland, engaged in a scheme to create false records that reflected a higher purchasing cost for fruits and vegetables from a national distributor than Adams Produce actually paid. The inflated costs were then presented to the government, which had agreed to pay a certain amount over Adams cost for produce.
According to Butler's, and other plea agreements in the case, Adams bought from TLC, one of the largest distributors of fresh produce in the United States, with offices located across the country. Beginning in about August 2011, Adams employees arranged and conduced transactions with TLC in Marietta, Ga., designed to create purchase orders and invoices that reflected inflated costs to Adams Produce.
Butler received the false purchase orders and invoices and, knowing they were created to represent Adams paid more than it actually did for the produce, used them to create the weekly pricing catalogs that he presented to the government Defense Supply Center, according to his plea agreement.
Between Aug. 4, 2011, and Dec. 7, 2011, Adams employees and officers conspired to conduct at least 82 transactions with TLC designed to create false invoices and purchase orders, according to the plea agreement. Through those false invoices submitted to the Defense Supply Center, Adams Produce fraudulently received about $481,000 from the government.
The conspiracy charge Butler faces carries a maximum penalty of five years in prison and a $250,000 fine.
The FBI and the IRS investigated the cases, which Assistant U.S. Attorney George A. Martin Jr. is prosecuting.
Cullman Car Dealer Pleads Guilty to Violating Legal Protections for Active-Duty Service MembersRead the Press Release
BIRMINGHAM – A Cullman used car dealer pleaded guilty today for violating federal protections for active-duty military service members by refusing to reduce the loan interest rate and repossessing the vehicle he sold to a man who was later deployed overseas with the Alabama National Guard, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.CARL RALPH NUSS, 75, entered his guilty plea before U.S. Magistrate Judge Harwell G. Davis III to the two counts of the March indictment charging him with violating the Servicemembers Civil Relief Act. The act provides certain protections for service members called to active duty, including interest rate limitations and protection from civil suit, repossession and eviction.
Nuss entered his plea without a plea agreement with the government. He is scheduled for sentencing Sept. 12.
Nuss is owner of North Alabama Wholesale Autos in Cullman. In February 2011, he sold a 2002 Ford Sport-Trac to a 22-year-old man. The dealership sold the vehicle for $9,746 and, after a $2,200 down payment, financed the balance at 25 percent interest per year, according to the indictment.
In May 2012, the Guardsman, a private first class, was called to active duty in Afghanistan. In July 2012, according to the indictment, Nuss received a letter from the Guardsman requesting that the dealership reduce the interest rate on his car loan from 25 percent to 6 percent, as required by the relief act. Nuss never reduced the interest rate and, two days after receiving the letter, hired two men to repossess the guardsman's truck. The two men repossessed the vehicle without a court order, in violation of the Servicemembers Civil Relief Act, the indictment says.
The maximum penalty for each count is one year in prison and a $100,000 fine.
The FBI investigated the case, which Assistant U.S. Attorney George A. Martin Jr. is prosecuting.
Fultondale Woman Pleads Guilty to Stealing from ATMs She ServicedRead the Press Release
BIRMINGHAM – A Fultondale woman pleaded guilty today in federal court to stealing money from an ATM at Children’s of Alabama while she worked as an ATM service technician, announced U.S. Attorney Joyce White Vance and U.S. Secret Service Acting Special Agent in Charge Jeffrey L. Anderson.
KELLY FUCHS, 26, entered her plea to bank larceny before U.S. District Judge Karon O. Bowdre. Fuchs was employed with Loomis armored-car service as an ATM service technician between late 2012 and early 2013 when she stole from ATMs around the Birmingham metro area, according to court documents.
As part of her plea agreement with the government, Fuchs consents to forfeit $47,000 to the government as proceeds of illegal activity, and to pay $47,000 in restitution to Loomis Armored.
According to the indictment and plea agreement, Fuchs stole from eight ATMs. The ATM locations and the amount stolen were: Children’s of Alabama, $6,000; Children’s of Alabama, $5,000; Montclair Road, Birmingham, $10,000; Medical Center East, $4,000; Culver Road, Mountain Brook, $10,000; Odum Road, Gardendale, $6,000; Martin Street, Pell City, $2,000; and Ashville Road, Leeds, $4,000.
The maximum sentence for bank larceny is 10 years in prison and a $250,000 fine.
The U.S. Secret Service and the Birmingham Police Department investigated this case, which Assistant U.S. Attorney Davis A. Barlow is prosecuting.
Former Closing Attorney Sentenced to Two Year in Prison for Wire Fraud in Mortgage Loan SchemeRead the Press Release
BIRMINGHAM – U.S. District Judge Karon O. Bowdre today sentenced a former Birmingham real estate lawyer to two years in prison for wire fraud in connection with a mortgage fraud scheme that exceeded $1 million, announced U.S. Attorney Joyce White Vance.
KELVIN LEONARD DAVIS, 42, pleaded guilty in February to four counts of wire fraud for knowingly submitting false mortgage documents and statements to various lenders in order to obtain approval for mortgage loans. At the time of the fraudulent transactions, from October 2007 to January 2012, Davis served as the closing attorney on each of the fraudulent loan transactions.
As part of Davis' plea agreement with the government, he agreed to forfeit $269,335 to the government as proceeds of the illegal activity. Judge Bowdre ordered that forfeiture as part of Davis' sentence.
According to the plea agreement, Davis carried out his fraud as follows:
He submitted false statements with loan documents in order to obtain approval for mortgage loans that would, otherwise, not have been approved. In many instances, Davis, while serving as closing attorney, would use his trust account to provide money to the borrower when a mortgage loan was closing. Davis would recover the money by subtracting the amount he provided from the proceeds he issued to the seller. Davis also would assess the seller a fee, ranging from $1,000 to $6,000, and make checks for the fee payable to Peaceful Valley Homes, a corporation he had formed. Total losses to the various lenders as a result of Davis' fraud exceeded $1 million.
The FBI and the Department of Housing and Urban Development, Office of Inspector General, investigated the case. Assistant U.S. Attorney Robin Beardsley Mark prosecuted the case.
Former Closing Attorney Sentenced to Two Year in Prison for Wire Fraud in Mortgage Loan SchemeRead the Press Release
BIRMINGHAM – U.S. District Judge Karon O. Bowdre today sentenced a former Birmingham real estate lawyer to two years in prison for wire fraud in connection with a mortgage fraud scheme that exceeded $1 million, announced U.S. Attorney Joyce White Vance.
KELVIN LEONARD DAVIS, 42, pleaded guilty in February to four counts of wire fraud for knowingly submitting false mortgage documents and statements to various lenders in order to obtain approval for mortgage loans. At the time of the fraudulent transactions, from October 2007 to January 2012, Davis served as the closing attorney on each of the fraudulent loan transactions.
As part of Davis’ plea agreement with the government, he agreed to forfeit $269,335 to the government as proceeds of the illegal activity. Judge Bowdre ordered that forfeiture as part of Davis’ sentence.
According to the plea agreement, Davis carried out his fraud as follows:
He submitted false statements with loan documents in order to obtain approval for mortgage loans that would, otherwise, not have been approved. In many instances, Davis, while serving as closing attorney, would use his trust account to provide money to the borrower when a mortgage loan was closing. Davis would recover the money by subtracting the amount he provided from the proceeds he issued to the seller. Davis also would assess the seller a fee, ranging from $1,000 to $6,000, and make checks for the fee payable to Peaceful Valley Homes, a corporation he had formed. Total losses to the various lenders as a result of Davis’ fraud exceeded $1 million.
The FBI and the Department of Housing and Urban Development, Office of Inspector General, investigated the case. Assistant U.S. Attorney Robin Beardsley Mark prosecuted the case.
South Carolina Man Indicted for Defrauding Birmingham Heavy Equipment CompanyRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a South Carolina man for wire fraud in connection with a scheme to sell a piece of heavy machinery he did not possess to a Birmingham company, announced U.S. Attorney Joyce White Vance and U.S. Secret Service Acting Special Agent in Charge Jeffrey Anderson.
An indictment filed in U.S. District Court charges THOMAS CHASE CHILES, 46, with one count of wire fraud and seeks forfeiture of $60,000 to the United States as proceeds of illegal activity.
According to the indictment, the fraud was conducted as follows:
Between Sept. 28, 2009, and Oct. 9, 2009, Chiles sent e-mails to Cowin Equipment Company in Birmingham, advertising a Komatsu PC300LC Excavator for sale and providing detailed specifications on the piece of equipment. Chiles did not own the excavator, nor did he have authority to sell it.
Through further e-mails to a Cowin representative, Chiles negotiated a $59,000 price for the excavator, plus $1,000 to deliver it to the heavy equipment company. Chiles sent subsequent e-mails to Cowin representatives to lull them into believing that he would eventually deliver the excavator and delay them from filing a complaint with the authorities.
On Oct. 9, 2009, Cowin wired $60,000 to Chile’s bank account for the Komatsu excavator, which it never received.
The maximum penalty for wire fraud is 20 years in prison and a $250,000 fine.
The U.S. Secret Service investigated the case. Assistant U.S. Attorney Chinelo Diké-Minor is prosecuting the case.
The public is reminded that an indictment contains only charges. A defendant is presumed innocent and it is the government’s responsibility to prove guilt beyond a reasonable doubt at trial.
Honduran Man Charged in Alien Smuggling CaseRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Honduran man for transporting illegal aliens in the United States and for illegally re-entering the country after having twice been deported last year, announced U.S. Attorney Joyce White Vance and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Special Agent in Charge Raymond R. Parmer Jr.
The indictment filed in U.S. District Court charges ALLAN GUALBERTO MEJIA-PONCE, 34, with transporting illegal aliens on May 17 and with aggravated illegal re-entry after deportation. Mejia-Ponce was deported from the United States on Feb. 13, 2012, and July 24, 2012. The indictment also charges five other people with illegal re-entry after deportation.
“At the time of his arrest, Mejia-Ponce, who previously had been deported from the United States, was transporting 14 individuals who were also unlawfully present in the United States,” Vance said. “Trafficking people across borders and within the United States violates the laws of this country. We are committed to ending this trafficking,” she said.
Indicted along with Mejia-Ponce for illegal re-entry after deportation are:
NELSON LIMA-ARANA, 20, of Guatemala, previously deported Feb. 17; YOLOXOCHITI CASTRO-ANGELES, 21, of Mexico, previously deported April 12; JESUS TORRES-PAREDES, 21, of Mexico, previously deported Feb. 28; JOSE ARIEL GUEVARA-RUIZ, 27, of El Salvador, previously deported Jan. 18; MIGUEL ANGEL RUIZ-GUEVARA, 26, of El Salvador, previously deported March 12, 2006, and Jan. 20, 2010.
The maximum sentence for transporting illegal aliens is 10 years in prison and a $250,000 fine. The maximum sentence for aggravated illegal re-entry after deportation is 20 years in prison and a $250,000 fine.
HSI investigated the case, which Assistant U.S. Attorney Michael W. Whisonant Sr. is prosecuting.
Members of the public are reminded that the indictment contains only charges. A defendant is presumed innocent and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt at trial.
Former Assistant Middle School Coach Sentenced to Prison for Possessing Child PornographyRead the Press Release
BIRMINGHAM – A federal judge today sentenced a former Homewood middle school coach and elementary school special education aide to more than eight years in prison for possessing child pornography, announced U.S. Attorney Joyce White Vance and Alabama Department of Public Safety Director Hugh B. McCall.
U.S. District Judge Inge P. Johnson sentenced JOSHUA DAVID STATUM, 26, of Pelham, to eight years and one month in prison for possessing 1,875 images of child pornography in 2011 and 2012. Statum pleaded guilty to the charge in March. He must serve five years of supervised release after completing his prison term.
Among the videos Statum possessed and distributed on a peer-to-peer file-sharing computer software program was one showing a little girl, less than 12 years old, being sadistically sodomized and raped, and another showing a 5-year-old girl performing sexual acts, according to court documents.
While Statum was working as an assistant wrestling and football coach at Homewood Middle School and as a special education aide, he was viewing and sharing child pornography over the Internet, according to the government's sentencing memorandum. "This defendant did not just look at a few images once in his life, but used file sharing computer technology to distribute images of prepubescent children being sodomized and raped and also to possess thousands of images of children be similarly exploited," the memorandum states.
The Alabama Bureau of Investigation investigated the case. Assistant U.S. Attorney Daniel J. Fortune prosecuted the case.
Birmingham Man Sentenced to One Year in Prison for Tweeting Threat Against PresidentRead the Press Release
HUNTSVILLE – U.S. District Judge C. Lynwood Smith Jr. today sentenced a Birmingham man to one year in prison for threatening the life of President Barack Obama on the social network Twitter, announced U.S. Attorney Joyce White Vance and U.S. Secret Service Acting Special Agent in Charge Jeffrey Anderson.
JARVIS BRITTON, 26, pleaded guilty in March to tweeting threats against the president in September. Judge Smith had ruled in February that Britton was competent to stand trial. After Britton completes his prison term, he must serve three years of supervised release.
A federal grand jury indicted Britton in September for knowingly threatening to kill, kidnap or inflict bodily harm on the president by tweeting the message, "Let's kill the president. F.E.A.R.," on Sept. 14.
The Secret Service investigated the case. Assistant U.S. Attorneys Joseph P. Montminy and Daniel J. Fortune prosecuted the case.
Prosecutors Seek to Dismiss One Defendant from Drug Conspiracy IndictmentRead the Press Release
BIRMINGHAM – The U.S. Attorney’s Office has asked a federal judge to dismiss one of 10 defendants from a drug-trafficking conspiracy indictment returned in April and unsealed in May following the arrests of all the defendants, announced U.S. Attorney Joyce White Vance.
Prosecutors this week filed the motion in U.S. District Court to dismiss DEALDRE R. “Twin” MURRELL, 27, of Birmingham, from the April 25 indictment. The move was prompted by information the government received and confirmed this week, according to the motion.
Dealdre’s twin brother, Deandre “Laray” or “Tojo” Murrell, also of Birmingham, remains under indictment in the case, along with eight other defendants: Billy “Champ” Williams Jr., 40, of Midfield; Sammuel Dewayne “Rosé” Gulley, 28, of Fairfield; Walter “Walt T” Johnson, 47, and Wilbert Curtis “Bing” Dalton Jr., 41, both of Dolomite; Grady Isam “Shady Grady” Jenkins, 46, Abe “Cuz” Johnson, 49, and Marion “Tuna” Reynolds Jr., 52, all of Birmingham; and Vernon Llwellyn “RJ” Mcadory, 38, of Bessemer.
The government is seeking to dismiss Dealdre Murrell from the four charges that he faced: conspiracy to distribute heroin and cocaine, and three counts of using a telephone to facilitate drug trafficking.
The indictment charges that Williams and his co-defendants ran a large-scale heroin and cocaine distribution network in western Birmingham and Jefferson County. The investigation by the FBI, Internal Revenue Service Criminal Investigation Division and the Jefferson County Sheriff’s Office began in 2011 and culminated with the January arrest of Gulley, followed by the April indictment and remaining arrests in May.
Gulley was arrested in possession of two kilograms of nearly pure heroin following a high-speed chase with Jefferson County Sheriff’s deputies on Jan. 25. Later that night, agents seized one and a half kilograms of cocaine from a home associated with Williams and Gulley.
Previous press release.
Federal Agents Arrest Six People Across Alabama Charged with State Inmate in Tax Refund SchemeRead the Press Release
Indictment.pdf
BIRMINGHAM – Federal agents today arrested six people in four cities across Alabama who are charged in connection with a five-year federal tax fraud conspiracy directed from inside an Alabama state prison, announced U.S. Attorney Joyce White Vance, Internal Revenue Service Criminal Investigation Division Special Agent in Charge Veronica Hyman-Pillot, and FBI Special Agent in Charge Richard D. Schwein Jr.
The man charged as the leader of the conspiracy, SHERMAINE “Shade” GERMAN, 56, now incarcerated in Bibb County Correctional Facility in Brent, was an inmate at Donaldson Correctional Facility in Bessemer at the time of the conspiracy. He is charged with orchestrating the far-reaching tax fraud scheme from Donaldson, where he obtained the names, birth dates and Social Security numbers of other people, often fellow inmates, including prisoners on death row and those serving sentences of life without parole. He used their information to create false income tax returns that contained fabricated amounts of tax withholdings, according to the indictment unsealed following the arrests.
German also created false power of attorney forms, which he mailed out of the prison along with the false income tax returns, according to the indictment. Various other members of the conspiracy notarized the power of attorney forms and used them to cash or deposit income tax refund checks received as part of the scheme, according to the indictment.
Six of seven people charged in the conspiracy with German were arrested today in Huntsville, Montgomery, Eufaula and Mobile.
“Schemes such as this involve millions of dollars stolen from legitimate taxpayers and the U.S. Treasury,” Vance said. “Thanks to the diligent and cooperative efforts of law enforcement, we were able to shut down this long-term fraud.”
"Individuals who commit refund fraud and identity theft with this degree of trickery, dishonesty and deceit deserve to be punished to the fullest extent of the law," Hyman-Pillot said. "We, along with the United States Attorney's Office, continue to do our part in protecting the sanctity and integrity of the tax system.”
“This case, as others our office and our law enforcement partners have investigated, shows that a person's identity and identification numbers have become a valuable commodity to today's criminal and should be guarded diligently by their owners,” Schwein said.
The 20-count May indictment filed in U.S. District Court charges that German and his co-defendants conspired from January 2008 through May 2013 to obtain payment of false claims for refunds from the Internal Revenue Service by filing fraudulent federal income tax returns in other people’s names.
Charged along with German in the conspiracy are: RONALD WEBSTER, 55, BRENDA JOYCE McDONALD, 55, and YVETTE BERRY PINCKNEY, 48, all of Montgomery; MARLO YVETTE MILLER, 46, and IRENE KING DOUGLAS, 58, both of Huntsville; CYNTHIA DIANNE WARE, 49, of Eufaula; and BARBARA ANN GRIMES, 62, of Mobile.
McDonald is the one defendant not yet in custody.
Further details of the scheme, as outlined in Count One of the indictment, are as follows:
Douglas sent blank tax return forms to German in prison. Douglas also received and cashed or deposited proceeds from tax refund checks using power of attorney forms she had someone else notarize.
German used two addresses in Montgomery and one in Mobile as return addresses where tax refunds should be delivered. One of the addresses was a Montgomery P.O. Box owned by Webster; one was the Montgomery apartment address of McDonald on Bonaparte Boulevard; and the third was a Mobile P.O. Box from which Grimes collected refund checks and power of attorney forms.
Webster collected IRS refund checks mailed to his P.O. Box and provided the checks and power of attorney forms to other co-conspirators, including Miller and Ware in Huntsville and Pinckney in Montgomery. Pinckney notarized power of attorney forms and, along with other co-conspirators, used the forms to cash or deposit fraudulent refund checks. Proceeds from the scheme were deposited into Pinckney’s Regions Bank account. Pinckney communicated with German on a contraband telephone he had in prison.
Miller cashed or deposited the fraudulent refund checks she received from Webster into Regions Bank or Redstone Federal Credit Union.
McDonald collected fraudulent refund checks mailed to her Montgomery apartment and provided them to Webster.
Grimes received fraudulent refund checks and power of attorney forms at the Mobile P.O. Box, had the power of attorney forms notarized, and then used them to cash or deposit the checks.
Counts Two through Nine of the indictment charge German and Webster with making false claims to the IRS.
Counts 10 through 15 charge German with mail fraud for causing or aiding others in causing the U.S. Postal Service to deliver fraudulent refund checks to the Montgomery and Mobile addresses.
Count 16 charges German, Webster, McDonald and Grimes with conspiracy to commit mail fraud against the U.S. Department of Treasury.
Counts 17 through 20 are aggravated identity fraud charges against German and Webster for using other people’s identifying information to create and file false tax returns.
The conspiracy to defraud the government and false claims charges both carry a maximum penalty of 10 years in prison and a $250,000 fine. Mail fraud and conspiracy to commit mail fraud both carry a maximum penalty of 20 years in prison and a $250,000 fine. Aggravated identity fraud carries a two-year minimum mandatory prison sentence that must be served consecutively to any other sentence imposed in the crime.
The IRS and FBI investigated the case. Assistant U.S. Attorney Russell E. Penfield is prosecuting the case.
The public is reminded that an indictment is only a charge. A defendant is presumed innocent and it will be the government’s responsibility to prove guilt beyond a shadow of a doubt at trial.
Former Narcotics Task Force Officer Charged with Embezzling Seized MoneyRead the Press Release
BIRMINGHAM – Federal prosecutors have charged the former commander of the West Alabama Narcotics Task Force with stealing at least $125,000 from suspected drug proceeds seized by the multi-agency task force, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
The U.S. Attorney’s Office late Thursday filed a one-count information in U.S. District Court charging JEFFREY LYNN SNYDER, 55, of Carrollton, with the theft from a program that received more than $10,000 in federal benefits within a one-year period. The U.S. Attorney’s Office also filed a plea agreement with Snyder in which he agrees to enter a guilty plea to the charge. According to the plea agreement, Snyder embezzled the money between June 2010 and June 2012, when he left the task force.
“Most law-enforcement officers serve their communities bravely and honorably each and every day,” Vance said. “Unfortunately, this defendant violated his oath, the law and the public trust he had been granted. That cannot be tolerated. The public must be able to trust its law enforcement officers.”
“Mr. Snyder tarnished the badge he wore and violated the trust of the people of West Alabama,” Schwein said. “This case demonstrates our commitment to enforce the law and hold individuals accountable, regardless of rank, position, or status. Fortunately, this is an isolated incident, and we should recognize the efforts of law enforcement officers throughout the region who continue to risk their lives on a daily basis so that the public can be safe,” he said.
The West Alabama Narcotics Task Force is staffed with officers from the Tuscaloosa Police Department, Tuscaloosa County Sheriff’s Office, Northport Police Department and University of Alabama Police Department. It is tasked to investigate all drug crimes in Tuscaloosa County.Snyder was a 29-year member of the Tuscaloosa Police Department, retiring as a captain in December 2012. He was detailed to the narcotics task force in 1989 and became its commander in June 2002, according to his plea agreement.
Task force members periodically seized money suspected to be proceeds of illegal drug transactions and turned the money in to Snyder, who was responsible for depositing the money into bank accounts while condemnation proceedings were pursued through court, according to the plea agreement. Snyder was entrusted to receive the seized money, log it in task force ledger books and deposit it in task force bank accounts.
Snyder began embezzling from the seized funds no later than June 2010. He executed his scheme “by pocketing some or all of the funds seized during various arrests, and then failing to correctly account for those funds,” the plea agreement states.
The agreement between the government and Snyder is a “binding plea agreement” in which both sides agree to an 18-month prison sentence, but the court must still approve the agreement.
The FBI investigated the case, with assistance from the West Alabama Narcotics Task Force. Assistant U.S. Attorney Henry Cornelius is prosecuting the case.
Two Bessemer Men Indicted for Trafficking Counterfeit ApparelRead the Press Release
BIRMINGHAM – A federal grand jury today indicted two Bessemer men for trafficking in counterfeit clothing, accessories and shoes in the Birmingham area, announced U.S. Attorney Joyce White Vance and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Special Agent in Charge Raymond R. Parmer Jr.
JOHNNIE HILL JR., 59, and MOUSSA ADAMOU, 43, are charged in separate and unrelated indictments filed in U.S. District Court. Hill also is charged as a convicted felon in possession of a firearm, a Jimenez Arms 9mm semi-automatic pistol.
Violating criminal laws that protect copyrights, patents, trademarks and trade secrets is considered theft of intellectual property.
“Copying someone else’s product in order to make a profit is theft,” Vance said. “Those who traffic in counterfeit goods harm legitimate retailers, as well as the consumers who purchase the substandard merchandise,” she said. “The Department of Justice and my office are working hard to protect American businesses and consumers from the damaging effects of intellectual property crime.”
“Criminals who sell counterfeit products don’t pay taxes that go to supporting healthcare, paving roads and providing other vital government services,” Parmer said. “They are parasites on the legitimate businesses that drive our economy and cost American workers their jobs.” Parmer oversees a five-state area of responsibility for HSI that includes Alabama, Arkansas, Louisiana, Mississippi and Tennessee.
Hill is charged with selling counterfeit goods through a store on Warrior Road in Birmingham from February 2011 to March 2013. Count 1 of the indictment charges that Hill trafficked in handbags, wallets, clothing, scarfs, belts, hats, shoes and glasses bearing counterfeit marks or logos for companies including Louis Vuitton Malletier, Nike, LaCoste, Ralph Lauren Polo, Gucci, Coggi, Ed Hardy, Coach, Michael Kors, Prada, Gianni Versace, Chanel, True Religion Jeans and New Era.
The indictment also charges that Hill possessed the 9mm semi-automatic pistol on March 14, 2013, after having previously been convicted of four felonies in state court – first degree robbery, first degree theft of property, promoting prison contraband and trafficking in marijuana – between 1985 and 1997.
The indictment against Adamou charges him with selling counterfeit goods from a tent on Ninth Avenue North in Bessemer in September 2012. Adamou trafficked in handbags, purses, clothing and shoes bearing counterfeit marks or logos for companies including Louis Vuitton Malletier, Nike, LaCoste, Ralph Lauren Polo, Gucci, Coggi, Rocawear, Coach, Michael Kors, Dolce, Tory Burch, Apple Bottom, Phat, True Religion Jeans and the NFL.
Trafficking in counterfeit goods carries a maximum penalty of 10 years in prison and a $2 million fine. Possessing a firearm as a convicted felon carries a maximum penalty of 10 years in prison and a $250,000 fine.HSI investigated both cases. Assistant U.S. Attorney Michael W. Whisonant Sr. is prosecuting the cases.
The public is reminded that an indictment contains only charges. A defendant is presumed innocent and it will be the government’s responsibility to prove guilt beyond a reasonable doubt at trial.Trussville Man Indicted for Multi-Million Dollar Tax SchemeRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Trussville man in connection with a scheme to collect millions of dollars from the Internal Revenue Service on false tax returns, announced U.S. Attorney Joyce White Vance and IRS Criminal Investigation Division Special Agent in Charge Veronica Hyman-Pillot.
The indictment filed in U.S. District Court charges NORMAN JAMES SECOR, 66, with filing or aiding in the filing of 12 false income tax returns and supporting documents between June 2008 and February 2009. Secor knew that he and the other taxpayers were not entitled to the $5.2 million in refunds he claimed, according to the indictment. Each false tax return contained a claim that money had been earned by the taxpayer and withheld by various financial institutions during the tax year and that the taxpayer was entitled to refund of those withholdings from the IRS, according to the indictment. No such earnings or withholdings had actually occurred.
Among the 12 false returns, Secor filed two in his name, totaling $1.5 million. The remaining 10 requested refunds totaled more than $3.7 million, according to the indictment.
If convicted, Secor could face a maximum sentence of five years in prison and a $250,000 fine on each of the 12 counts of making false claims against the government.
The public is reminded that an indictment contains only charges. A defendant is presumed innocent and it will be the government’s responsibility to prove the defendant’s guilt beyond a reasonable doubt at trial.
Madison County Man Indicted for BancorpSouth RobberyRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Madison County man for the Feb. 5 robbery of a Madison, Ala., bank, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
The indictment filed in U.S. District Court charges that ANTONIO LASHAWN DRAKE, 27, robbed the BancorpSouth branch on Hughes Road of more than $5,000. Madison Police arrested Drake at a Huntsville residence the day of the robbery.
The bank robbery charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
The FBI and Madison Police investigated the case. Assistant U.S. Attorney Laura D. Hodge is prosecuting the case.
The public is reminded that an indictment is only a charge. A defendant is presumed innocent and it is the government’s responsibility to prove guilt beyond a reasonable doubt at trial.
Three Men Sentenced to Prison for Roles in Northwest Alabama Drug RingRead the Press Release
TUSCALOOSA – Three of four defendants in a methamphetamine- and cocaine-trafficking organization based in northwest Alabama were sentenced today in federal court, announced U.S. Attorney Joyce White Vance and Drug Enforcement Administration Assistant Special Agent in Charge Clay A. Morris.U.S. District Judge L. Scott Coogler sentenced ISMAR GUTIERREZ-PINEDA, 34, of Haleyville, GARY DALE BARTLETT, 51, of Arley, and EMERITO CABRERA, 24, of Russellville, for their roles in a conspiracy to distribute more than 500 grams of methamphetamine, more than 500 grams of cocaine and more than 28 grams of “crack” cocaine in Franklin, Cleburne and Winston counties between August 2011 and November 2012. A fourth member of the conspiracy, EDWIN ISIDRO ALFARO-ENRIQUEZ, 42, of Littleville, is scheduled for sentencing July 30. All four men pleaded guilty in February.
Judge Coogler sentenced Gutierrez-Pineda to 10 years and 10 months in prison on the conspiracy and individual drug distribution charges, as well as for being an illegal alien in possession of a firearm. According to the indictment, Gutierrez-Pineda possessed a Smith and Wesson .38-caliber pistol, a Copperhill .45-caliber pistol, a Marlin .22-caliber rifle, and a Savage 7mm rifle on Nov. 7 in Winston County.
Judge Coogler sentenced Bartlett to two years in prison and Cabrera to three years in prison for the conspiracy and one count each of distributing methamphetamine.
The year-long investigation concluded with the seizure of seven pounds of methamphetamine, multiple ounces of cocaine and multiple firearms and vehicles.
The DEA, Franklin County Sheriff’s Office, Russellville Police Department, Alabama State Troopers, and the Winston County Sheriff’s Office investigated the case. Assistant U.S. Attorney John B. Felton is prosecuting the case.
Twenty-One People Arrested in Huntsville-based Drug-Trafficking ConspiracyRead the Press Release
NOTE: Release has been updated since press conference. There is also one correction included – Christopher David "Chris Wheeler" Sanders is from Decatur and Christopher Ike "Coota" Okafor is from Huntsville. Please note the motion to dismiss that is attached. Defendant Trevor Marchel Young is to be dismissed from the indictment. Please see links:
Cortez Carr et al Indictment
Motion to Dismiss Young - FiledHUNTSVILLE – Federal agents and members of a Madison and Morgan County drug task force today arrested 21 people charged as members of a drug-trafficking conspiracy operating out of Huntsville since at least 2010, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Richard D. Schwein Jr. and Madison-Morgan County High Intensity Drug-Trafficking Area Task Force Commander, Sgt. Dewayne McCarver.
The defendants are part of overlapping drug rings, one distributing powder and crack cocaine and the other, marijuana, in Madison County, according to a 34-count indictment unsealed following today's arrests. Twenty of the defendants were arrested in North Alabama and one defendant turned himself in in Atlanta. Authorities continue to pursue a 22nd defendant, known as "Renay."
Brothers CORTEZ DEAUNDRA "Tez" CARR, 33, and TYRIS TERVILLE "Black" CARR, 38, both of Huntsville, are charged in the cocaine and the marijuana conspiracies. The multi-agency investigation, begun early in 2010, identifies Cortez Carr as the leader of the illegal drug distribution rings.
"This investigation has successfully taken down a major cocaine- and marijuana-trafficking organization operating in Northern Alabama," Vance said. "This is a sterling 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," Vance said.
"Today's arrests dismantle a narcotics operation that spread from Atlanta to Birmingham, as well as from Huntsville and Decatur to Gadsden," Schwein said. "This type of investigation and enforcement activity between the agencies involved shows when numerous agencies work together, as they did in this case, it has a significant impact and can help to restore an entire neighborhood. The law abiding citizens who live in the areas targeted in this morning's investigations have their neighborhood back."
"This is a perfect example of the impact that can be made when agencies work together," McCarver said. "This case will have a lasting positive impact on the cities of Huntsville, Madison and Decatur, by removing a major drug-trafficking operation from this area. I am proud to have worked with all of the agencies involved."
Cortez Carr is charged, individually, with separate counts of possessing with intent to distribute powder cocaine and crack cocaine, and with possessing a firearm – a Bryco Arms 9mm pistol and a FEG .45-caliber pistol – in furtherance of a drug-trafficking crime, all on March 15, 2010. Cortez Carr also is charged, individually, with six counts of distributing more than 28 grams of crack cocaine and one count of distributing more than 280 grams of crack on various dates between August 2012 and December 2012.
Cortez Carr is charged, along with his brother, Tyris Carr, and their cousin, LACARL CARR, 37, of Huntsville, with possessing with intent to distribute more than 500 grams of cocaine in Madison County on Jan. 14. LaCarl Carr faces one count of possessing a firearm – a derringer .38-caliber – in furtherance of cocaine trafficking on that date.Along with various other defendants in the conspiracy, Cortez Carr is charged with three counts of using a telephone, in November 2012 and December 2012, to further the marijuana conspiracy. He faces 13 counts, with various other defendants, of using a telephone between December 2012 and January 2013, to further the cocaine conspiracy.
Of the 22 defendants charged in the April 24 indictment returned by a federal grand jury in Birmingham, 20 are from Huntsville. Along with the Carrs they are: brothers TOMMY "Roland" CHILDS III, 51, and ERIC DEWAYNE "Twin" or "Look-a-like" CHILDS, 42; CHRISTOPHER IKE "Coota" OKAFOR, 29; COREY TODD "Black Boy" THOMPSON, 25; GREGORY LAVAR "Greedy G" HAMPTON, 35; MICHAEL WAYNE BURTON, 45; TRAVIS SANITAL WASHINGTON, 31; DEONTA LAJUAN TURNER, 30; TERRENCE LAVELLE "Wolf" MELTON, 36; JOHN EARNEST MOORE JR. 27; CHARLES COLVIN COPELAND, 44; CORNELIUS ANTONIO CARTER, 30; FREDERICK LEE MAPLES, 46; MONICA CHAMPALER TONEY, 35; DARRAL DEMETRIAS WALTER, 38; KEENAN JERMAINE SHEPHARD, 33; and an unidentified defendant, referred to in the indictment as FNU "Renay" LNU, age unavailable.
The two defendants from outside Huntsville are: QUINCY TYWY ELLINGTON, 36, of Atlanta, and CHRISTOPHER DAVID "Chris Wheeler" SANDERS, 33; of Decatur.
The three Carrs, Eric and Tommy Childs, Sanders, Thompson, Hampton, Burton, Washington, Ellington, Turner, Melton, Moore, Copeland, Carter, Young, Maples, Toney and Walter are charged in Count One of the indictment with the conspiracy to possess and distribute more than 280 grams of crack cocaine on March 15, 2010.
Cortez and Tyris Carr, Melton, Shephard, Okafor and Renay are charged in Count Two with the conspiracy to possess and distribute marijuana.
Okafor, individually, is charged with possessing with intent to distribute marijuana, and with possessing a firearm – a Beretta .22 LR pistol – in the furtherance of the drug-trafficking crime, on Feb. 7. He also is charged with being a felon in possession of a firearm.
Conspiring to possess and distribute more than 280 grams of crack cocaine carries a maximum penalty of life in prison and a $4 million fine. Conspiracy to possess and distribute marijuana carries a maximum penalty of five years in prison and a $250,000 fine. Possessing with intent to distribute more than 500 grams of cocaine carries a minimum mandatory prison sentence of five years and a maximum sentence of 40 years in prison and a $5 million fine. Possessing a firearm in furtherance of a drug-trafficking crime carries a minimum mandatory sentence of five years in prison, which must be served consecutively to any other sentence imposed for the crime.
The FBI, Madison-Morgan County HIDTA Task Force, Huntsville, Madison and Decatur police departments, Alabama Alcoholic Beverage Control Board, Alabama Department of Public Safety, federal Drug Enforcement Administration, and Madison County and Morgan County sheriff's departments and district attorneys' offices investigated the case. Assistant U.S. Attorney Terence O'Rourke is prosecuting the case.
The public is reminded that an indictment contains only charges. Defendants are presumed innocent and it is the government's obligation to prove guilt beyond a reasonable doubt at trial.
Former Postal Worker Pleads Guilty to Stealing Packages, One with GunsRead the Press Release
FLORENCE – A former U.S. Postal worker pleaded guilty Wednesday in federal court to conspiracy and mail theft in connection with a scheme to redirect packages, including one containing 11 handguns, to an accomplice, announced U.S. Attorney Joyce White Vance and Postal Service, Office of Inspector General, Executive Special Agent in Charge Max Eamiguel.
RODNEY DEWAYNE CLARK, 34, of Birmingham, entered his plea before U.S. District Judge Inge P. Johnson to one count of conspiracy to defraud the United States and two counts of theft of mail by an officer or employee of the Postal Service. Clark is scheduled for sentencing Aug. 22.
According to court records, Clark worked at the Postal Service's Birmingham Distribution Center handling and directing mail in June 2012 when he conspired with an associate, Daltery Robinson of Birmingham, to embezzle packages by affixing new mailing labels to them and redirecting them to his associate's home.
Clark notified Robinson by text message or phone call of the pending delivery of embezzled mail. On June 7, 2012, according to court records, Clark sent a text message about a stolen package he was redirecting to Robinson's address, which contained 11 Jimenez handguns. The text read: "Got one comn pow pow $ROCAFELLAS$." That package had been addressed to Gold Star Pawn in Bessemer.
Once the packages were delivered to Robinson, Clark would pay him $200 for each package, according to court records.
Robinson pleaded guilty in November to one count of theft or receipt of mail matter.
Ten Men Charged in Birmingham Area Heroin and Cocaine Trafficking RingRead the Press Release
Williams et al Indictment.pdf
Prosecutors Seek to Dismiss One Defendant from Drug Conspiracy Indictment
BIRMINGHAM – Federal agents and Jefferson County Sheriff’s deputies working with the U.S. Attorney’s Office today arrested eight men and are searching for a ninth who are charged in a drug-trafficking conspiracy that brought about $5 million worth of heroin and cocaine into the Birmingham area in less than a year, according to an indictment unsealed following the arrests.
U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Richard D. Schwein Jr., Internal Revenue Service Criminal Investigation Division Special Agent in Charge Veronica Hyman-Pillot, Jefferson County Sheriff Mike Hale and federal Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Jeff Fulton announced the arrests, which resulted from a joint investigation that began in 2011 to combat large-scale narcotics trafficking in western Birmingham and Jefferson County.
The investigation focused on BILLY “Champ” WILLIAMS Jr., now charged as a large-scale heroin and cocaine distributor in western Birmingham, and his network of operators. For more than a year, the FBI gathered evidence exposing an extensive drug-trafficking operation. The investigation culminated with the Jan. 25 arrest of SAMMUEL DEWAYNE “Rosé” GULLEY, 28, of Fairfield, identified as a key member of the organization. Gulley was arrested in possession of two kilograms of nearly pure heroin following a high-speed chase with Jefferson County Sheriff’s deputies. Later that night, agents seized one and a half kilograms of cocaine from a home associated with Williams and Gulley.
“In 2012, the Birmingham area found itself awash in heroin overdose deaths. A drug that no one expected to experience a rebirth began claiming the lives of young people, people in their 20s, 30s, and even their teens,” Vance said. “There were at least 78 overdose deaths in Jefferson and Shelby counties, and perhaps an equal number of cases where overdose death was averted by the swift action of emergency medical technicians” she said. “This investigation puts drug traffickers on notice that we are going to wipe out this epidemic and that criminal networks that profit from the sale of these deadly and highly addictive substances will not be tolerated. Law enforcement at all levels engaged in a highly coordinated effort in this case and we intend to employ the full force of law and justice to investigate and prosecute drug trafficking.”
“The arrests made in this investigation highlight the great work being done by the North Alabama Safe Streets Task Force and is a clear example of the determination and collaborative spirit among area law enforcement agencies to dismantle criminal enterprises that pose the most significant threat,” Schwein said.
“Asset forfeiture is a vital tool in disrupting criminal organizations by depriving them of property used or acquired through illegal activities,” Hyman-Pillot said. “We are proud to have contributed our financial expertise in order to dismantle the drug-trafficking operation that has been targeting Jefferson County citizens for the past year.”
“This case took a lot of hard work and cooperation between our agencies, and every bit of the time and effort was worth it,” Hale said. “These are the kinds of dangerous drug dealers whose dealings are literally killing people, not to mention all of the spin-off violent crime they are responsible for. I want to personally thank all involved in helping remove them from our streets. Jefferson County is a safer place with them locked away, no doubt,” he said.
“This indictment is the culmination of a lengthy investigation,” Fulton said. “This investigation is more evidence that ATF’s commitment to combating violent crime is unwavering. We will utilize every resource to make our communities safer places to live.”
The eight people arrested today on conspiracy or drug distribution charges in a 41-count April 2013 indictment were:
WILLIAMS, 40, of Midfield; WALTER “Walt T” JOHNSON, 47, and WILBERT CURTIS “Bing” DALTON JR., 41, both of Dolomite; GRADY ISAM “Shady Grady” JENKINS, 46, twin brothers DEANDRE R.“Laray” or “Tojo,” MURRELL and DEALDRE R. “Twin” MURRELL, 27, and MARION “Tuna” REYNOLDS JR., 52, all of Birmingham; and VERNON LLWELLYN “RJ” MCADORY, 38, of Bessemer.
Authorities are still searching for ABE “Cuz” JOHNSON, 49, of Birmingham.
Nine of the 10 defendants – all but Dalton -- are charged with conspiracy to distribute heroin and cocaine between May 2012 and April 2013 in Jefferson County. Four counts of the indictment charge various defendants with distributing or possessing with intent to distribute either heroin or cocaine. Jenkins and Dalton are charged with distributing heroin on Nov. 28, 2012. Williams and Gulley are charged with two counts of possession with intent to distribute narcotics on Jan. 25, 2013, one count for a kilogram or more of heroin and one count for 500 grams or more of cocaine. Jenkins faces one count of distributing heroin on April 9, 2013.
The remaining 36 counts charge use of a telephone to facilitate drug trafficking. The 36 counts correspond to individual phone calls made between Oct. 18, 2012, and Jan. 25, 2013. According to the indictment, all the calls involve Williams. Along with Williams, other defendants charged with drug-trafficking phone calls are: Gulley, 12 counts; Walter Johnson, five counts; Deandre Murrell and Jenkins, four counts each; Dealdre Murrell, three counts; Reynolds and Abe Johnson, two counts each; and McAdory, one count.
The drug conspiracy count carries a sentence of 10 years to life in prison. The charge of possessing with intent to distribute heroin carries a maximum penalty of 20 years in prison and a $1 million fine. The charge of possessing with intent to distribute a kilogram or more of heroin carries a maximum penalty of life in prison and a $10 million fine. The charge of possessing with intent to distribute 500 grams or more of cocaine carries a maximum penalty of 40 years in prison and a $5 million fine. The charge of using a telephone to facilitate drug trafficking carries a maximum penalty of four years in prison and a $250,000 fine on each count.
The FBI, IRS-CID and Jefferson County Sheriff’s Office investigated the case, with assistance from ATF and the Birmingham and Hueytown police departments. Assistant U.S. Attorney Gregory R. Dimler is prosecuting the case.
The public is reminded that an indictment contains only charges. A defendant is presumed innocent of the charges and it is the government’s responsibility to prove the defendant’s guilty beyond a reasonable doubt.
Media AdvisoryRead the Press Release
FOR PLANNING PURPOSES ONLY
TUESDAY, MAY 21, 2012
*******MEDIA ADVISORY*******The U.S. Attorney for the Northern District of Alabama, along with the FBI, IRS Criminal Investigation Division, the Jefferson County Sheriff’s Office and other law enforcement agencies will hold a press conference today to announce arrests in a large-scale narcotics trafficking investigation in western Birmingham and Jefferson County.
WHAT: Press conference
WHEN: Today
2:30 P.M.
WHERE: U.S. Attorney’s Office
1801 Fourth Ave. North
Birmingham, AL 35203
2nd Floor Conference RoomMedia should arrive about 30 minutes before the press conference to set up.
NOTE: All media must have photo identification and valid media credentials. For additional information, contact Peggy Sanford at 205-244-2020, or [email protected].
Museum Guard Sentenced to Eight Years in Prison for Receiving and Possessing Child PornographyRead the Press Release
HUNTSVILLE – A federal judge today sentenced a former museum security guard to more than eight years in prison for receiving and possessing child pornography, announced U.S. Attorney Joyce White Vance and U.S. Postal Inspector R. Frank Dyer.
U.S. District Judge C. Lynwood Smith Jr. sentenced LOYD JEFFREY HITT, 53, of Center Point, on one count of receiving child pornography between May 2009 and October 2012, and on one count of possessing child pornography within that same time period. Hitt pleaded guilty to the charges in February. Judge Smith sentenced Hitt to 97 months in prison on each count, with the sentences to run concurrently.
According to court records, Hitt made a series of purchases of videos and photographs through the mail beginning in 2009, and also received images of child pornography over the Internet. Hitt had the mail orders shipped to his long-time workplace, the Birmingham Museum of Art. The videos and photographs contained pornographic images of underage boys, some younger than 14.
The U.S. Postal Inspection Service investigated the case. Assistant U.S. Attorneys Ryan K. Buchanan and Laura Hodge prosecuted the case.
Former State Court IT Administrator Pleads Guilty to Stealing Computer CodeRead the Press Release
BIRMINGHAM – The former computer systems administrator for the Alabama court system pleaded guilty this week in federal court in Montgomery to stealing court system computer code, announced U.S. Attorney Joyce White Vance, U.S. Secret Service Special Agent in Charge Jeffrey Anderson and Alabama Department of Public Safety Director Hugh B. McCall.
DAVID MICHAEL CARROLL, 59, who retired as director of Information Systems for the Alabama Administrative Office of the Courts in June 2007, entered his plea Tuesday before U.S. Magistrate Judge Wallace Capel Jr. to one count of being a state government employee who stole property worth at least $5,000 from a program that received $10,000 or more in federal funds annually. The U.S. Attorney’s Office for the Northern District of Alabama prosecuted the case after the U.S. Attorney’s Office for the Middle District of Alabama recused itself. Carroll’s sentencing has not been set.
Carroll’s co-defendant in the case, JILL HAWTHORNE, 36, a former database administrator for AOC, pleaded guilty earlier this year to aiding and abetting access to a protected law enforcement database. Her sentencing is scheduled June 14.
According to their plea agreements with the government, Carroll and Hawthorne stole computer code from AOC’s county court records database, known as Namemaster, in November 2007 while Carroll was doing contract work for the Madison County Circuit Court. Hawthorne was still employed with AOC at that time. Carroll and Hawthorne transferred the computer code and related information to an Orlando-based computer software development company, CyberBest Technology. Carroll had a working relationship with CyberBest management at the time, according to his plea agreement.
U.S. Secret Service and the Alabama Department of Public Safety investigated the case. Assistant U.S. Attorney David Estes is prosecuting the case.
Birmingham Tax-Preparer Gets Three Years in Prison for Aiding Filing of False Tax ReturnsRead the Press Release
BIRMINGHAM -- A federal judge today sentenced a Birmingham tax-preparer to three years in prison and ordered her to repay $322,876 to the U.S. Treasury for aiding and abetting the filing of false income tax returns, announced U.S. Attorney Joyce White Vance and IRS Criminal Investigation Division Special Agent in Charge Veronica Hyman-Pillot.
U.S. District Judge R. David Proctor sentenced SALLY ELIZABETH WYNN, 65, on three counts of aiding and abetting the filing of a false return. A federal jury convicted her on those charges following a three-day trial in January. Wynn was a 20-year professional tax-preparer and owner of Centerpoint Financial Services. After serving her prison sentence, she must serve a year on probation.
"Our country offers many benefits and opportunities to people from all walks of life, but with those benefits comes the obligation to pay taxes on earnings," Vance said. "Ms. Wynn's conviction and sentence make clear that tax preparers who do not follow the income tax laws will be prosecuted and ordered to pay back what they stole," she said.
"Concealing income in order to evade taxes is a serious offense," Hyman-Pillot said. "It is our hope that today's sentence will send a strong message that tampering with the integrity of our nation's tax system can result in jail time and that these violations must be, and will continue to be pursued in order to obtain justice."
According to evidence at trial, Wynn helped one of her clients hide income from the Internal Revenue Service for the 2005, 2006, and 2007 tax years. The evidence showed that Wynn provided tax-preparation and bookkeeping services to Gonzalez Construction Incorporated and its owner, Jose Gonzalez. As a result, Wynn knew that Gonzalez received at least $340,000 in personal income during each of the years in question. Nevertheless, she prepared tax returns for him that claimed between $55,000 and $66,000 in total income during each of the three years.
Gonzalez still faces criminal charges for his role in these crimes.
The IRS investigated the case. Assistant U.S. Attorneys Melissa K. Atwood and Robin B. Mark prosecuted the case.