Eastern District of Arkansas
Press releases recorded for this federal judicial district.
Former TSA Employee Pleads Guilty to Distribution of Child PornographyRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Homeland Security Investigations Special Agent in Charge Raymond R. Parmer, Jr., announced today that Raymond Kinney, 54, of Jacksonville, has pleaded guilty to child pornography charges.
Kinney, who was a Transportation Security Inspector for the Transportation Security Administration (TSA) prior to his arrest, pleaded guilty on Tuesday to distribution of child pornography before United States District Judge Susan Webber Wright, who will sentence him at a later date. Kinney was indicted on February 4, 2015. As part of the plea agreement, the parties will jointly recommend a sentence of 20 years, the maximum allowed by law, in exchange for the United States not charging Kinney with additional criminal conduct that was also uncovered in the investigation, including enticement of a minor.
Kinney was arrested in January 2015, after arriving at a motel where he planned to meet a person he thought was a 10-year-old girl. According to online chats that were recovered from his account, Kinney planned to have sex with this minor. A search incident to arrest revealed that Kinney had brought sex toys and children’s clothing with him.
"This defendant planned to sexually abuse a 10-year-old little girl," Thyer said. "Thanks to the work of law enforcement officers, he was not able to follow through with that plan. Fortunately, the minor in this case was actually undercover law enforcement, but online predators will seize any opportunity to take advantage of our children.
"There is no higher priority in my office than protecting the children of Arkansas, and, as I have said many times, parents must be aware of the potential for danger online and monitor their children’s internet activity just as closely as they would monitor them in any other public place."
According to facts read at the hearing, this investigation began in January 2015, when undercover officers monitoring a social networking site encountered an individual seeking a minor for sexual contact. Under the username "luvsyngteengirls," this individual sent several pictures and videos of child pornography over the internet. Kinney admitted that "luvsyngteengirls" was his username. Agents ultimately arranged a meeting at a motel with Kinney using this username, and when Kinney arrived, officers arrested him.
"Today’s guilty plea is a victory and it sends a clear cut message to those who want to take advantage of our children. We will find you and you will be prosecuted to the fullest extent of the law," Parmer, Jr., said. "We are committed to protecting the most vulnerable members of our society. HSI and its local, state and federal partners will continue to work together to put these predators behind bars."
The indictment charges that on or about January 27, 2015, Kinney knowingly distributed child pornography. The statutory penalty for distribution of child pornography is at least five but not more than 20 years of imprisonment, up to a $250,000 fine, and five years of supervised release.
The investigation was conducted by Homeland Security Investigations with substantial assistance from Russellville Police Department. The case is being prosecuted by Assistant United States Attorneys Allison W. Bragg and Kristin Bryant.
Benton Man Sentenced to 30 Months in Prison for Possession of Illegal WeaponRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that Justin Stegall, 30, of Benton, was sentenced to 30 months imprisonment for being in possession of an unregistered short-barreled rifle. United States District Court Judge Billy Roy Wilson, who presided over a two-day trial of Stegall, announced the sentence on Thursday.
A jury found Stegall guilty on February 17, 2016. As presented during trial, on September 10, 2013, Stegall was discovered to have a loaded, unregistered short-barreled rifle in his vehicle, which was located in a shopping center in Benton. Benton Police Department officers had responded to the scene to locate the vehicle after dispatch received a call from a driver who reported that a man had flashed a gun at him in a road rage incident. At sentencing, the victim of the road rage incident testified, and the Court found that Stegall did in fact threaten the other driver.
A vehicle matching the description given by the victim was seen driving into the shopping center. An employee of one of the stores informed the responding officers that she noticed the vehicle because it zoomed through a shopping center parking lot crowded with children and families. This employee then directed police to a neighboring restaurant where they located Stegall, the driver of the vehicle. After Stegall’s arrest officers found the loaded, unregistered short-barreled rifle, along with seven other firearms in his vehicle.
Stegall was also sentenced to serve the maximum three years supervised release upon the completion of his prison term.
The case was investigated by the Benton Police Department and Bureau of Alcohol, Tobacco, Firearms & Explosives, and prosecuted by Assistant United States Attorneys Edward Walker and Erin O’Leary.
Conway Man Sentenced to 25 Years in Prison for Production of Child PornographyRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Special Agent in Charge Diane Upchurch, of the Little Rock Field Office for the Federal Bureau of Investigation (FBI), announced today that Nicholas Tensley, age 29, of Conway, Arkansas, was sentenced to 25 years imprisonment for production of child pornography.
Nicholas Tensley was indicted on May 6, 2015, with one count of production of child pornography and one count of distribution of child pornography. On October 9, 2015, Tensley pled guilty to production of child pornography. On Tuesday, Tensley was sentenced by Chief United States District Judge Brian S. Miller to 25 years imprisonment, and ten years of supervised release.
"All too often some people argue that the downloading of child pornography from the internet is a ‘victimless’ crime. Nothing could be further from the truth." Thyer said. "As a matter of fact this case clearly demonstrates that as long as there is a market for individuals who would download child pornography, there will be individuals like Tensley who will sexually abuse other children so that they can then trade or sell those images of abuse with like-minded people." Thyer went on to say, "The sexual exploitation of a four-year-old child in the care of a trusted individual is despicable and sickening in and of itself. However, this child—along with thousands of others like her—will be victimized over and over again as sexual deviants download and view the images of her abuse from the internet. "
The charges in the Indictment were based upon an investigation that began in March 2015 when an undercover police officer (UC) with the FBI and the District of Columbia Metropolitan Police Department (MPD) Child Exploitation Task Force posted an advertisement in an area of a website site frequented by individuals who have a sexual interest in children and incest.
On April 14, 2015, Nicholas Tensley answered the UC’s advertisement stating, "I just moved to the area and looking for like minded people. Im 5’10" 28 blk male." The UC responded, "Sweet DC hereinto yng incest, etc…You a dad?" Tensley responded and stated he had two female children, ages six and ten. After a brief email exchange, Tensley provided his KIK screen name. During the communications with the UC, Tensley sent two images of child pornography and indicated they were pictures of his daughters.
On April 14, 2015, Tensley stated he had engaged in vaginal intercourse with his daughter as recently as two weeks prior to the messaging conversation and had performed oral sex with her more recently. On April 15, 2015, during a chat with the UC on KIK, Tensley sent seven images of his purported daughter. Several of the images contained sexually explicit images of a prepubescent female.
On April 16, 2015, members of the Little Rock Division of the FBI located and arrested Tensley. Tensley was advised of his Miranda rights and confessed to distribution of the pictures in his conversation with the UC. Tensley provided written consent to search his Samsung S-4 Galaxy telephone and showed agents the conversation in his KIK application. Tensley initially denied taking the photographs; however, he later admitted to taking the photographs using his Samsung Galaxy S-4 telephone in the Fred’s Store parking lot in Star City, Arkansas. The victim was identified by Tensley as a four-year-old female. Tensley does not have any minor daughters but was left to babysit the minor female. Tensley further stated he had deleted the images from his telephone after communicating with the UC because he became nervous he might be speaking with law enforcement officials.
"The production of pornography involving children is an affront to our communities. The sentencing today reflects our disgust at the actions of Tensley," stated Special Agent In Charge Diane Upchurch with the FBI in Little Rock. "We appreciate the efforts of the United States Attorney’s Office, the Conway Police Department, and the District of Columbia Metropolitan Police Department in this case, and will continue to work with all of our partners to identify these predators and their victims."
The investigation was conducted by the Little Rock Office of the Federal Bureau of Investigation and the Federal Bureau of Investigation (FBI)/MPD Child Exploitation Task Force. The case was prosecuted by Assistant United States Attorney Kristin Bryant.
Three Plead Guilty to Fraud of Nearly $4 Million from Lawrence County BankRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Special Agent in Charge Diane Upchurch, of the Little Rock Field Office for the Federal Bureau of Investigations (FBI) announced today that Brenda Montgomery, 57, of Walnut Ridge, Peggy Sutton, 61, of Biggers, and Cindy Tate, 57, of Walnut Ridge, have all pleaded guilty to a felony information charging them with conspiracy to commit bank fraud. The three admitted to stealing nearly $4 million from First National Bank of Lawrence County, Arkansas.
Montgomery and Tate pleaded guilty on Tuesday and Sutton on Wednesday before United States District Judge Kristine G. Baker, who will sentence them at a later date. Judge Baker conditionally accepted each defendant’s guilty plea subject to receiving the presentence reports for the defendants. Pursuant to a plea agreement with the United States, each defendant is responsible for $1,317,000 in restitution to the bank.
The felony information charged that the three conspired with each other from 2005 through in or about April 2015 to fraudulently obtain approximately $3,953,025 from the First National Bank of Lawrence County, Arkansas. According to the facts read at the hearings, Montgomery, Sutton, and Tate were long-time employees of the bank who, using their positions, acted together to conceal the theft of money from the vault of the bank’s main office in Walnut Ridge.
Tate had advance notice of internal audits and would arrange with Montgomery or Sutton to have cash transferred temporarily to the main vault from other branches of the bank, or from other corresponding banks, so that it would appear to the auditors that the count of cash on hand in the main vault was correct. Once the auditors had completed the count, Tate, Sutton, or Montgomery saw to it that cash which had been temporarily moved to the vault was then returned to the other branches or to the corresponding bank.
In April 2015, officials in management at First National became suspicious of the defendants’ conduct and arranged for a surprise cash count of the vault contents, at which time a shortage became apparent. A forensic audit confirmed that the three defendants had stolen bank funds by materially over representing the amount of cash on hand in the bank by $3,953,025.
The statutory penalties for conspiracy to commit bank fraud, in violation of 18 U.S.C. § 1349, include imprisonment of not more than 30 years, a $1,000,000 fine, five years supervised release, and a $100 special assessment. The defendants have been allowed to remain free on bond pending sentencing.
Former Twin Peaks Manager Sentenced to 25 Years in Prison for Attempted Enticement of a Minor and Production of Child PornographyRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, Special Agent in Charge Diane Upchurch, of the Little Rock Field Office for the Federal Bureau of Investigations (FBI), and Pulaski County Sheriff Doc Holladay announced today that Larry Wayne Wilder, age 28, of Maumelle, Arkansas, was sentenced to 25 years imprisonment for attempted enticement of a minor to engage in a sex act and production of child pornography.
A superseding information charged Wilder with one count of attempted enticement of a minor to engage in sexual activity and one count of production of child pornography. On Friday, Wilder pleaded guilty to the superseding information, and pursuant to the plea agreement the United States and Wilder agreed to recommend a sentence of 25 years imprisonment. Chief United States District Judge Brian S. Miller sentenced Wilder to 120 months for the attempted enticement of a minor and 180 months for the production of child pornography, to run consecutive for a total of 300 months or 25 years imprisonment, and 20 years of supervised release.
"Today’s case continues to show the dark side of the internet and the ease with which adults can prey on young children," Thyer said. "What is particularly disturbing in this case is the predator acted not just on the internet, but made contact with victims in real life. Thankfully, today’s lengthy prison sentence will put an end to his heinous criminal activity. Unfortunately, there are others like him still out there, and parents must always be vigilant in monitoring their children’s social media usage and should remind their children that they never know who is on the other end of the computer."
The charges in the superseding information were based on an investigation that began in August 2015, when the FBI received a tip from the National Center for Missing and Exploited Children (NCMEC) that an adult male was having inappropriate communications with two minors using social media. Members of the Pulaski County Sheriff’s Office and the FBI then conducted an online takeover of one of the minor’s social media accounts. During the course of conversations between Wilder and an undercover officer, Wilder arranged to meet the undercover officer at a local park for the purpose of having sex. Wilder was arrested when he arrived at the park.
During a subsequent interview, Wilder admitted to lying about his age on social media and pretending to be a minor because it was easier to talk with minors the same age. Wilder admitted to meeting boys and girls under the age of 18 years old with the intent to have sex, and he could not recall how many minors he had met for sex. Wilder admitted to paying minors money for sexual acts. Wilder also admitted to having child pornography on his phone, which he gave officers consent to search.
A search of his cellular telephone revealed 140 videos and 2,600 images of child pornography. The search of his cellular telephone also revealed multiple conversations in which he was asking minors to send him sexually explicit pictures. Specifically, Wilder had a conversation with one minor during which he asked the minor to send him photographs of the minor’s genitals. The minor sent the pictures, and Wilder then asked the minor to send additional sexually explicit pictures. When the minor refused the second request, Wilder told the minor that he was going to post the minor’s pictures on the internet.
"Today’s sentence demonstrates the resolve of law enforcement to apprehend dangerous sex offenders who take advantage of our most precious resource, our children," Special Agent in Charge Upchurch said. "Along with our partners at the Pulaski County Sheriff’s Office and the United States Attorney’s Office, we will continue to take steps to ensure that individuals such as Wilder pay for their deplorable actions."
The investigation was conducted by the Little Rock Office of the Federal Bureau of Investigations and the Pulaski County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Kristin Bryant.
Pulaski County, Arkansas, Sheriff's Office Sergeant Arrested for Mail FraudRead the Press Release
LITTLE ROCK— Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, today announced the arrest of Kelvin Hendrix, 47, a Sergeant with the Pulaski County Sheriff’s Office for mail fraud. Federal agents with the Federal Bureau of Investigation (FBI) arrested Hendrix, a 25-year veteran with the Sheriff’s Office, when he reported for work. Upon arrest, agents executed a federal search warrant on Hendrix’s residence in Bauxite, Arkansas. Agents also arrested Jennifer Gann of Sherwood, 35, an employee of Cruse Uniforms and Equipment, for her involvement in the mail fraud scheme.
The arrest stemmed from a federal complaint signed by Judge Jerome T. Kearney.
"Today Sergeant Kelvin Hendrix of the Pulaski County Sheriff’s Office was arrested on a federal criminal complaint for mail fraud," Thyer said. "As alleged in the complaint, Sergeant Hendrix was using his position with the Sheriff’s Office to purchase firearms, which were ultimately paid for by Pulaski County," "As soon as Sergeant Hendrix’s scheme was discovered, Sheriff Doc Holladay immediately notified the FBI and turned much of the investigation over to them.
"While it is disheartening to learn that a 25-year veteran of the Sheriff’s Office would violate the public’s trust in such a manner, it is reassuring to know that Sheriff Holladay and the other good men and women of the Pulaski County Sheriff’s Office will treat one of their own in the same manner they would treat any other person alleged to be involved in criminal activity," concluded Thyer.
"The initial allegation was brought to my attention." Holladay said. "The information was given to the Federal Bureau of Investigation due to the nature of the investigation."
The FBI discovered that, as part of their mail fraud scheme, Hendrix and Gann stole funds allocated by the Pulaski County Sheriff’s Office for the purchase of employee uniforms and used those stolen funds to purchase firearms from Cruse. Between July 2015 and April 2016, Hendrix and Gann used this scheme to purchase at least 25 firearms.
The charge of mail fraud carries a statutory penalty of not more than 20 years’ imprisonment, not more than a $250,000 fine, and not more than three years of supervised release. The criminal complaint contains only allegations. A federal Grand Jury will decide whether to indict on these charges. Hendrix and Gann are presumed innocent until proven guilty.
This case was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Benecia B. Moore.
Maumelle Man Sentenced to 20 Years Imprisonment for Production of Child PornographyRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, Special Agent in Charge Raymond R. Parmer, Jr., of the New Orleans Field Office for Homeland Security Investigations, and William J. Bryant, Director of the Arkansas State Police, announced today that Seth Christian Ganahl, age 42, of Maumelle, Arkansas, was sentenced to 20 years imprisonment and a lifetime of supervised release for production of child pornography.
An indictment handed down by a Grand Jury in the Eastern District of Arkansas on February 4, 2015, charged Ganahl with two counts of attempted enticement of a minor to engage in sexual activity, one count of enticement of a minor to engage in sexual activity, one count of transportation of a minor with the intent to engage in sexual activity, one count of attempted production of child pornography, and two counts of production of child pornography.
The charges in the indictment were based on an investigation that began in August 2014, when a minor disclosed to her mother and the Maumelle Police Department that Ganahl had previously asked her to engage in illicit sexual activity on multiple occasions. After the minor’s disclosure, a second minor disclosed that Ganahl had also asked her to engage in illicit sexual activity.
Ganahl was arrested by the Maumelle Police Department on August 27, 2014. Electronic devices seized and searched pursuant to federal search warrants revealed that Ganahl was using the name Christian Canon, and his business, Little Rock Models, to entice minors to send him photographs and videos of the minors engaged in sexually explicit conduct. Ganahl would then pay the minors for the photographs and videos.
On April 12, 2016, Ganahl entered a plea to one count of production of child pornography. Ganahl admitted to meeting minors on various social networking websites and communicating with them via Skype. Ganahl admitted that he asked a minor, via Skype, to send him a nude photograph with his name and the date on it to prove she was not law enforcement. After sending the photograph, the minor later asks Ganahl "do I have to be over a certain age to do this? I will be 16 this month if that is alright." Ganahl responded, "your age is perfect." Ganahl then asked the minor for multiple photographs and videos of her engaging in sexually explicit conduct and paid her at least $900 for the images. Ganahl also admitted to doing a sexually explicit photo shoot at his home with the minor where he made her wear a dog collar and chain.
"The conduct by the defendant in this case continues to show the dangers of the internet and the ability of adults to easily manipulate and prey on children through the internet," Thyer said. "My office hopes that a sentence of 20 years imprisonment plus lifetime supervision sends the message that the internet is not anonymous and we will continue to locate these perpetrators who hide behind screen names and false personas to take advantage of the most vulnerable among us."
Pursuant to a Rule 11(c)(1)(C) plea agreement, the United States and Ganahl agreed to the sentence of 20 years imprisonment. United States District Judge Kristine G. Baker also sentenced Ganahl to a lifetime of supervised release following imprisonment.
"Individuals who produce child pornography are directly responsible for what is, in plain language, the rape of children. Production of child pornography steals the innocence of children and destroys lives," Parmer said. "Criminals who prey on children will continue to be one of the agency’s highest priorities in order to protect the innocent from these terrible crimes."
"This case began with a call to the Arkansas State Police Child Abuse Hotline by the Maumelle Police Department," Bryant said. "It illustrates the importance of a teamwork approach, beginning with the public, and working together with multiple law enforcement agencies to identify and arrest those individuals who prey on innocent children," Bryant said.
The investigation was conducted by the Little Rock Office of Homeland Security Investigations, the Arkansas State Police Crimes Against Children Division, and the Maumelle Police Department. The case was prosecuted by Assistant United States Attorney Kristin Bryant.
Second Round of Arrests Made in Clinton-Based Drug Trafficking Organization;123 Pounds of Methamphetamine Seized in OperationRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, along with Matthew Barden, Assistant Special Agent in Charge of the Drug Enforcement Administration (DEA), 20th Judicial District Prosecuting Attorney Cody Hiland, Van Buren County Sheriff Scott Bradley, and Faulkner County Sheriff Matt Rice announced today a second round of arrests in Operation Ice Storm, an investigation into drug trafficking in Van Buren County. The early-morning raid led to arrests of 18 federal defendants and 20 state defendants on charges involving conspiracy to possess with intent to distribute methamphetamine, distribution of methamphetamine, and use of a communication facility to facilitate drug trafficking.
Eighteen of the 19 defendants named in a federal indictment are in custody, with one defendant still at large in California. Three of the federal defendants were already in state custody on separate charges, and eight state defendants are still at large. United States Magistrate Judge J. Thomas Ray will hold initial appearances for the federal defendants on Thursday.
"While standing on the courthouse steps in Clinton in 2014 after the arrests in the first phase of Operation Ice Storm, I vowed that my office would continue to combat the drug trafficking problem in Clinton and Van Buren County, and today’s arrests mark our commitment to that vow," Thyer said. "Methamphetamine continues to ruin countless lives and families every day. Our efforts in taking this drug off the street are unwavering, and we will continue to work with all law enforcement agencies to remove the individuals responsible for distributing methamphetamine to our communities."
"Today we have dismantled multiple drug-trafficking groups who have been responsible for bringing significant amounts of methamphetamine from Mexico into several communities in central Arkansas," Barden continued. "The DEA, working with our federal, state and local law enforcement partners, are committed to bring to justice those organizations that continue to damage and pollute our communities with drugs for profit."
Operation Ice Storm began in January 2011 with an investigation into Jeffery Weaver and multiple other co-conspirators. The first phase of Operation Ice Storm resulted in the arrests of 54 defendants on state and federal charges on September 24, 2014. Out of the 34 defendants who were arrested on federal charges, 21 have pleaded guilty or are scheduled to plead guilty, and two remain fugitives (James Knott and Isaac Jauregui-Estrada). As a result of this first phase, law enforcement determined that Anthony Silva, Wesley Harrison, Trey New, and the other named co-defendants were also responsible for distributing large quantities of methamphetamine in the Van Buren County area.
During the second phase of Operation Ice Storm investigators used numerous law enforcement actions, including multiple undercover operations and court-authorized Title III wiretaps. All told, the second phase of Operation Ice Storm resulted in the seizure of approximately 123 pounds of methamphetamine, one pound of heroin, multiple firearms, and approximately $138,000 in drug proceeds. The defendants charged are responsible for distributing or possessing hundreds of pounds of methamphetamine in Van Buren County.
In Wednesday morning’s operation, approximately 8.5 pounds of methamphetamine, 52 grams of heroin, 16 firearms, and $24,085 in drug proceeds were seized.
"This operation represents the important work our drug task force agencies do on a daily basis," Hiland said. "It also reflects what can happen when you have a good working relationship with your federal counterparts and other agencies."
The federal indictment, unsealed today, was handed down by a Grand Jury on March 2, 2016. The indictment charges 19 defendants in 15 separate counts. The counts include conspiracy to possess with intent to distribute more than 500 grams of methamphetamine, distribution of methamphetamine, and the use of telephone to facilitate a drug trafficking crime.
If convicted of conspiracy to distribute more than 500 grams of methamphetamine each defendant will face a sentence of not less than 10 years to life imprisonment.
The investigation and prosecution of this case is a coordinated effort through the David G. Wilhelm OCDETF Strike Force and the High Intensity Drug Trafficking Areas (HIDTA), and was conducted by the DEA and the 20th Judicial District Drug Task Force with assistance from several law enforcement agencies including the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), Arkansas State Police, 16th Judicial District Drug Task Force, and the Central Arkansas Drug Task Force. The case is being prosecuted by Assistant United States Attorneys Kristin Bryant and Liza Jane Brown.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
Second Phase Of Operation Ice Storm - Federal Defendants_Charges
Former Arkansas DHS Employee Pleads Guilty to Accepting Bribes and Conspiracy in Scheme to Steal USDA Funds Intended to Feed Hungry ChildrenRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that former DHS employee Gladys Waits, 36, of Little Rock, pled guilty to one count of conspiring to commit wire fraud and one count of receipt of a bribe in connection with USDA funds intended to feed children in low income areas during the school year and summer.
Today’s plea hearing took place in Little Rock before United States District Judge James M. Moody, Jr., who will sentence Waits at a later date.
The United States Department of Agriculture (USDA) funds the Child and Adult Care Feeding Program, which includes an at-risk after school component. USDA also funds the Summer Food Service Program. In Arkansas, the feeding programs are administered by the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. After they are approved, they can provide meals as part of the feeding program, and they are reimbursed for the eligible meals they serve.
Waits worked for DHS, and her responsibilities included processing applications from sponsors who applied to participate in the feeding programs, determining their eligibility, and approving their proposed feeding site(s).
According to the facts read at the hearing, three other co-defendants, Jacqueline Mills, Kattie Jordan and Dorothy Harper, were sponsors of feeding programs from in or about January 2012 to in or about August 2014. Mills was a sponsor and had approved sites in cities including Helena and Marianna, Arkansas. Mills’ programs received more than $2.5 million in federal funds from DHS. Jordan was a sponsor through Save Our Youth and Save Our Community, which had approved sites in cities including Dermott, Dumas, Eudora, and Lake Village, Arkansas. Jordan’s programs received more than $3.5 million in federal funds from DHS. Harper was a sponsor for the feeding programs through Kingdom Land Youth Outreach Ministries which had approved sites in cities including England, Keo, Allport, Tucker, Toltec, Coy and Altheimer, Arkansas and Harper’s program received more than $1.3 million in federal funds from DHS.
Waits was responsible for approving the feeding programs for Mills, Jordan, and Harper at various times from in or about January 2012 to in or about August 2014. Mills and Jordan made bribe payments to Waits. Some bribes were made directly by checks made payable to Gladys Waits or indirectly through payments to her relatives. Mills made some bribe payments via check to Anthony Waits. Harper also made cash payments to Anthony Waits. Anthony Waits is the husband of Gladys Waits.
In exchange for these bribe payments, Gladys Waits, knowing that these sponsors would submit inflated claims, would still approve their applications, which contained the location of the sites and the maximum number of children who would be fed at each site.
During the time described in the Indictment, Mills, Jordan, and Harper all submitted inflated claims for reimbursement to DHS. They claimed that more children were fed at their sites than were actually fed. Because their applications had been approved for a specified number of sites and a specified number of children who could be fed at the sites, inflated claims were approved and paid by DHS without further scrutiny. Gladys Waits also helped Mills, Jordan, and Harper avoid DHS’s detection of the fraud.
Jordan pled guilty to conspiracy to commit wire fraud in connection with the feeding programs and was sentenced to 63 months in prison on March 15, 2016.
Also, according to the facts read at the change of plea, Anthony Waits recruited additional sponsors to participate in the feeding programs. These sponsors gave a percentage of the money received from the feeding programs to Anthony Waits. Christopher Nichols, the Anthony Waits’ nephew, and Reuben Nims, Anthony Waits’ brother-in-law, are two of the recruited sponsors who received payments for inflated claims. Gladys Waits approved those sponsors’ applications. Nichols and Nims have pled guilty in connection with fraud in the feeding programs.
Gladys Waits is the seventh person to plead guilty (see chart below) concerning the theft of USDA feeding program funds for children. The amount of fraud these seven people have admitted to exceeds $5.3 million. Previous charges filed in this investigation detail alleged fraud involving over $10.5 million in USDA feeding program funds.
The statutory penalty for conspiracy to commit wire fraud is not more than 20 years imprisonment, not more than a $250,000 fine, or both, and not more than three years supervised release. The statutory penalty for accepting bribes is not more than 10 years, not more than a $250,000 fine, or both, and not more than three years supervised release.
The investigation is ongoing and is being conducted by the USDA–Office of Inspector General, Federal Bureau of Investigation, Internal Revenue Service–Criminal Investigations, and United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Jana Harris, Allison W. Bragg, and Cameron McCree. If you are aware of any fraudulent activity regarding these feeding programs, please email that information to [email protected].
Pled guilty, awaiting sentencing
**Kattie Jordan (4:15-cr-00250-JM) —$3.6 million fraud
Francine Leon (4:16-cr-00010-JM) —$1 million fraud
Chris Nichols (4:15-cr-00045-JLH —$333,000 fraud
Erica Warren and Alexis Young (DHS employee) (4:16-cr-015-BSM) —$253,000 fraud
Reuben Nims (4:15-cr-00199-JM) —$182,000 fraud
** sentenced to 63 months’ incarceration, 3 years supervised release on March 15, 2016.
Indicted, awaiting trial
Anthony Waits (4:15-cr-00250-JM)
Tonique Hatton (DHS employee) (4:15-cr-00250-JM)
Jacqueline Mills (4:15-cr-00250-JM)
Dorothy Harper (4:15-cr-00250-JM)
Maria Nelson (4:15-cr-000246-JLH)
Mike Lee (4:15-cr-00149-BSM)
Trial date — May 16, 2016
Trial date — June 6, 2016
Trial date – August 29, 2016
Former Judge Sentenced to 10 Years for Accepting Bribe During His Arkansas Court of Appeals CampaignRead the Press Release
A former state circuit judge in Arkansas was sentenced today to 120 months for accepting a bribe in exchange for reducing a negligence verdict against a company in Conway, Arkansas, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and First Assistant U.S. Attorney Patrick C. Harris of the Eastern District of Arkansas.
Michael A. Maggio, 54, of Conway, was sentenced by Chief U.S. District Judge Brian S. Miller of the Eastern District of Arkansas. Maggio pleaded guilty on Jan. 9, 2015, to a one-count information charging him with bribery concerning programs receiving federal funds.
As part of his plea agreement, Maggio admitted that in 2013, he served as an elected circuit judge for the state of Arkansas, 20th Judicial District, Second Division, and presided over a civil matter in Faulkner County, Arkansas, Circuit Court, in which a jury awarded a plaintiff $5.2 million in damages against a nursing home company. Maggio admitted that, while the company’s post-trial motions for new trial or to reduce the amount of damages awarded were pending, he formally announced his candidacy for the Arkansas Court of Appeals.
Two weeks later, the owner of the nursing home company donated approximately $24,000 to Maggio’s campaign, and the following day Maggio reduced the verdict to $1 million. Before making his decision, Maggio admitted that a fundraiser for his campaign discussed the pending post-trial motions with him and told him that the company’s owner had committed money to support his campaign. As part of his plea, Maggio admitted that his decision to remit the judgment was caused by the donations and that he attempted to delete text messages between the fundraiser and himself after the media became aware of the bribes.
The FBI’s Little Rock Field Office investigated the case. Trial Attorneys Edward P. Sullivan and Charles Walsh of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Julie Peters of the Eastern District of Arkansas prosecuted the case.
Former Judge Sentenced to 10 Years for Accepting Bribes During His Arkansas Court of Appeals CampaignRead the Press Release
WASHINGTON – A former state circuit judge in Arkansas was sentenced today to 120 months for accepting a bribe in exchange for reducing a negligence verdict against a company in Conway, Arkansas, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and First Assistant U.S. Attorney Patrick C. Harris of the Eastern District of Arkansas.
Michael A. Maggio, 54, of Conway, was sentenced by Chief U.S. District Judge Brian S. Miller of the Eastern District of Arkansas. Maggio pleaded guilty on Jan. 9, 2015, to a one-count information charging him with bribery concerning programs receiving federal funds.
As part of his plea agreement, Maggio admitted that in 2013, he served as an elected circuit judge for the state of Arkansas, 20th Judicial District, Second Division, and presided over a civil matter in Faulkner County, Arkansas, Circuit Court, in which a jury awarded a plaintiff $5.2 million in damages against a nursing home company. Maggio admitted that, while the company’s post-trial motions for new trial or to reduce the amount of damages awarded were pending, he formally announced his candidacy for the Arkansas Court of Appeals.
Two weeks later, the owner of the nursing home company donated approximately $24,000 to Maggio’s campaign, and the following day Maggio reduced the verdict to $1 million. Before making his decision, Maggio admitted that a fundraiser for his campaign discussed the pending post-trial motions with him and told him that the company’s owner had committed money to support his campaign. As part of his plea, Maggio admitted that his decision to remit the judgment was caused by the donations and that he attempted to delete text messages between the fundraiser and himself after the media became aware of the bribes.
The FBI’s Little Rock Field Office investigated the case. Trial Attorneys Edward P. Sullivan and Charles Walsh of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Julie Peters of the Eastern District of Arkansas prosecuted the case.
Feeding Program Fraud Ring Sees First Defendant Sentenced, Jordan Receives More Than 5 Years PrisonRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas announced today that United States District Court Judge James M. Moody Jr. sentenced Kattie Jordan, 51, of Dermott, to more than five years in federal prison for her role in the widespread scheme to steal money intended for feeding children in low income areas.
Jordan, who pled guilty to conspiring to commit wire fraud on August 3, 2015, was sentenced to 63 months imprisonment, to be followed by three years of supervised release. She was also ordered to pay joint restitution of $3,629,278.20, along with any other defendants who may be sentenced to the same restitution amount.
Jordan is the first defendant sentenced who was charged in the scheme to fraudulently obtain United States Department of Agriculture (USDA) program funds intended to feed children in low income areas. Anthony Leon Waits, Gladys Elise Waits, Tonique D. Hatton, Jacqueline D. Mills, Dortha M. Harper, and Jordan are charged with conspiring to fraudulently obtain USDA program funds and related crimes.
Jordan and Mills operated as sponsors for separate feeding programs. Gladys Waits and Hatton worked for the Arkansas Department of Human Services, and part of their job was to determine eligibility of sponsors to participate in the feeding programs. Gladys Waits and Hatton approved Jordan’s and Mills’ programs at various times.
Although Jordan and Mills did feed some children, the charges allege that Mills and Jordan submitted claims for many more meals than they actually served. Gladys Waits and Hatton approved applications for Mills and Jordan, which facilitated the payment of these fraudulent claims. Mills and Jordan then made bribe payments to Gladys Waits and Hatton, sometimes directly and at other times indirectly through their relatives.
The amount of Jordan’s fraud, over and above any children actually being fed, was in the millions of dollars. During Tuesday’s sentencing hearing, the United States argued that not only were these millions of dollars not used to provide meals for hungry children, but also that the fraud Jordan and others engaged in impacted the integrity of the feeding programs. The United States argued that, because of the fraud, simply focusing on statistics, such as the amount of money paid through the programs or the number of children allegedly being fed, does not provide an accurate way to gauge the success of these feeding programs.
The remaining defendants in the case are scheduled to stand trial beginning May 16, 2016. The statutory penalty for wire fraud and conspiracy to commit wire fraud is not more than 20 years imprisonment, not more than a $250,000 fine, or both, and not more than 3 years supervised release. The statutory penalty for receipt of bribes, paying bribes, and money laundering is not more than 10 years imprisonment, not more than a $250,000 fine, or both, and not more than 3 years supervised release.
The investigation remains ongoing and is conducted by the United States Department of Agriculture—Office of Inspector General, United States Secret Service, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigations, and the United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Jana K. Harris and Allison W. Bragg.
If anyone is aware of any fraudulent activity regarding feeding programs, please email that information to the United States Attorney’s office at [email protected].
Former Bald Knob Police Chief Pleads Guilty to Gun CrimeRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, Jeffrey Reed, Resident Agent in Charge for the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), and Col. William J. Bryant of the Arkansas State Police, announced today that former Bald Knob Police Chief Erek Balentine, 31, of Bald Knob, pled guilty to a felony Information charging him with possessing a stolen firearm. In addition, he agreed to personally pay more than $12,000 in restitution relating to an incident in which his personal truck burned shortly prior to his resignation from the police department.
Today’s plea hearing took place in Little Rock before United States District Judge Brian S. Miller. Judge Miller will sentence Balentine at a later date.
Balentine’s final day as Bald Knob police chief was October 5, 2015. In spring 2015, Balentine had a conversation with a former White County police officer who was interested in donating a shotgun to the Bald Knob Police Department. Bald Knob was attempting to raise money for a K-9 unit for the department, and the purpose of this firearm donation was to auction off the shotgun to obtain funds to retrofit a police car with a cage to hold the K-9 unit.
The former officer purchased the shotgun, a Beretta, Model A300, 12-gauge shotgun, for $1,199 and had it shipped to All Star Pawn in Bald Knob, a federal firearm licensee. The donor intended for All Star Pawn to hold the shotgun and make a legal transfer to the winner of the auction, after the police department had the funds. At no time was Balentine or anyone authorized to keep the shotgun for personal use prior to the auction.
On October 2, 2015, the last business day he was still police chief, Balentine retrieved the Beretta shotgun from All Star Pawn. On October 14, 2015, Arkansas State Police Corporal Mike McNeill received information that Balentine was attempting to sell the shotgun, which was still police property, to an individual with whom Balentine was acquainted. Earlier that day, Balentine sent this acquaintance a text message with a picture of the Beretta shotgun, still in its case, which stated, "brand new, I will take $800 for it." Balentine also said that he needed the money for personal reasons.
After this communication agents observed Balentine go to his residence in Bald Knob and retrieve what appeared to be a gun in its case and proceed toward the location of the proposed gun transaction. Cpl. McNeill and ATF Special Agent David Oliver then initiated a traffic stop on Balentine, at which time he admitted he had a gun in the car. The shotgun was never auctioned.
During the plea hearing, in addition to admitting to the facts of the stolen firearm, Balentine did not contest facts offered by the United States to support a restitution payment of $12,968.71 to Progressive Insurance related to a fraudulent insurance claim for a vehicle fire. This restitution is designed to repay Progressive for insurance payments from the fire which destroyed Balentine’s 2007 Dodge Ram pickup truck.
The fire occurred at Balentine’s residence on September 24, 2015, and was immediately determined to be arson. At Monday’s plea hearing the United States—in providing a factual basis for the proposed restitution order—presented numerous examples of evidence which suggest that Balentine was a participant in causing the fire which resulted in the damage to his truck. The United States informed Judge Miller that it would not pursue charges before a Grand Jury for arson and mail fraud, and Balentine agreed to repay as restitution the money Progressive paid as a result of Balentine’s fraudulent insurance claim.
The charge of possession of a stolen firearm carries a maximum sentence of up to 10 years in prison, a $250,000 fine, and three years of supervised release. The investigation was conducted by the Arkansas State Police and the ATF. The case is being prosecuted by Assistant United States Attorney Chris Givens.
Little Rock Man Steals Money Meant to Feed Hungry Children, Pleads GuiltyRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced Tuesday that Reuben Nims, 52, of Little Rock, pled guilty to an Information charging him with conspiring to commit mail fraud. Nims conspired to steal money intended to feed children in low income areas during the school year.
Tuesday’s plea hearing took place in Little Rock before United States District Judge James M. Moody, Jr., who will sentence Nims at a later date.
The United States Department of Agriculture (USDA) funds the Child and Adult Care Feeding Program, which includes an at-risk after school component. In Arkansas, the feeding programs are administered by the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. After they are approved, they can provide meals as part of the feeding program, and they are reimbursed for the eligible meals they serve.
Nims was a sponsor for a feeding program through an organization called "Blessed Thru Success." Nims had one approved feeding site on Rodney Parham Road in Little Rock, where he claimed as many as 300 children were fed each day. No children were ever actually fed there. In this way, Nims stole over $182,000 in USDA funds that were intended to feed children in need. DHS paid this money to Nims by checks that were mailed to his home.
Nims admitted that he was recruited by Anthony Waits, who has been indicted on similar charges in Case No. 4:14CR00250 JM. Waits’ wife, Gladys Waits, worked for DHS and approved Nims’ application. She has also been indicted on similar charges in Case No. 4:14CR00250 JM. The plan was for Nims to pay Anthony Waits a percentage of the money Nims received. Out of the money Nims received, he withdrew approximately $130,000 in cash. Nims paid Anthony Waits approximately 50% of the total amount of money he received.
Nims is the sixth person to plead guilty concerning the theft of USDA feeding program funds for children. Previous charges filed in this investigation detail alleged fraud involving over $10 million in USDA feeding program funds.
The statutory penalty for conspiracy to commit mail fraud is not more than 20 years imprisonment, not more than a $250,000 fine, or both, and not more than three years supervised release.
The investigation is ongoing and is being conducted by the USDA–Office of Inspector General, Federal Bureau of Investigation, Internal Revenue Service–Criminal Investigations, and United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Jana Harris and Allison W. Bragg.
If you are aware of any fraudulent activity regarding these feeding programs, please email that information to [email protected].
Former Jail Administrator from Stone County, Arkansas, Pleads Guilty to Instructing Inmates to Assault Another PrisonerRead the Press Release
The Justice Department announced that Randel Branscum, 56, a former chief deputy and jail administrator with the Stone County Sheriff’s Office in Mountain View, Arkansas, pleaded guilty late yesterday to violating the civil rights of a prisoner when he instructed two other inmates to beat that prisoner and then arranged for the beating to occur. One of those inmates, Matthew McConniel, also pleaded guilty late yesterday to the same charge as Branscum, while the other inmate, James Beckham, pleaded guilty to the same civil rights offense on Feb. 26, 2016.
During his guilty plea before Chief U.S. District Judge Brian S. Miller of the Eastern District of Arkansas, Branscum admitted that while acting under his authority as jail administrator, he approached the inmates in their cell and asked them to “handle” the victim. Branscum then forced the victim into the cell and allowed the victim to be beaten by Beckham and McConniel as instructed. During the assault, the victim was repeatedly struck and his head was punched into a windowsill causing a laceration and other injuries. Branscum admitted that after the beating, he gave Beckham and McConniel tobacco.
Branscum is expected to receive a sentence of 12 months and a day in federal prison. He will be sentenced at a later date.
“Branscum abused his authority as a law enforcement officer by facilitating the assault of an individual in custody,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Justice Department will continue to vigorously pursue and hold accountable members of law enforcement who violate their oath and the civil rights of others.”
“Branscum’s actions undermine the credibility of all law enforcement officers, and he must be held accountable,” said U.S. Attorney Christopher R. Thyer of the Eastern District of Arkansas. “We will not tolerate the violation of anyone’s rights, and law enforcement officers who break the law and violate their oath to protect the public will continue to face the consequences of their actions.”
This case was investigated by the FBI, and was prosecuted by Special Litigation Counsel Gerard Hogan, and Trial Attorneys Gabriel Davis and Samantha Trepel of the Civil Rights Division’s Criminal Section, and Assistant U.S. Attorney Julie Peters of the Eastern District of Arkansas.
Former Jail Administrator from Stone County, Arkansas, Pleads Guilty to Instructing Inmates to Assault Another PersonRead the Press Release
WASHINGTON – The Justice Department announced that Randel Branscum, 56, a former chief deputy and jail administrator with the Stone County Sheriff’s Office in Mountain View, Arkansas, pleaded guilty late yesterday to violating the civil rights of a prisoner when he instructed two other inmates to beat that prisoner and then arranged for the beating to occur. One of those inmates, Matthew McConniel, also pleaded guilty late yesterday to the same charge as Branscum, while the other inmate, James Beckham, pleaded guilty to the same civil rights offense on Feb. 26, 2016.
During his guilty plea before Chief U.S. District Court Judge Brian S. Miller of the Eastern District of Arkansas, Branscum admitted that while acting under his authority as jail administrator, he approached the inmates in their cell and asked them to "handle" the victim. Branscum then forced the victim into the cell and allowed the victim to be beaten by Beckham and McConniel as instructed. During the assault, the victim was repeatedly struck and his head was punched into a windowsill causing a laceration and other injuries. Branscum admitted that after the beating, he gave Beckham and McConniel tobacco.
Branscum is expected to receive a sentence of 12 months and a day in federal prison. He will be sentenced at a later date.
"Branscum abused his authority as a law enforcement officer by facilitating the assault of an individual in custody," said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. "The Justice Department will continue to vigorously pursue and hold accountable members of law enforcement who violate their oath and the civil rights of others."
"Branscum’s actions undermine the credibility of all law enforcement officers, and he must be held accountable," said U.S. Attorney Christopher R. Thyer of the Eastern District of Arkansas. "We will not tolerate the violation of anyone’s rights, and law enforcement officers who break the law and violate their oath to protect the public will continue to face the consequences of their actions."
This case was investigated by the FBI, and was prosecuted by Special Litigation Counsel Gerard Hogan, and Trial Attorneys Gabriel Davis and Samantha Trepel of the Civil Rights Division’s Criminal Section, and Assistant U.S. Attorney Julie Peters of the Eastern District of Arkansas.
Two Women Plead Guilty to Conspiracy in Scheme to Steal Feeding Program FundsRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that Erica Warren, 36, of Little Rock, and Alexis Young, 37, of Bryant, pled guilty to an Information charging them with conspiring to commit mail fraud. The charge relates to a conspiracy to fraudulently obtain United States Department of Agriculture (USDA) program funds intended to feed children in low income areas during the school year.
Today’s plea hearing took place in Little Rock before United States District Judge Brian S. Miller. Judge Miller will sentence Warren and Young at a later date.
The USDA funds the Child and Adult Care Feeding Program (CACFP), which includes an at-risk after school component. In Arkansas, the feeding programs are administered by the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. Once approved, they can provide meals as part of the feeding program and be reimbursed based on the number of eligible meals they serve.
According to facts read at the plea hearing, Warren operated as a sponsor for a feeding program through an organization called "Write of Passage." At times during the period charged in the Information, Warren had approved sites in Little Rock. Young worked for DHS, and part of her job was to determine eligibility of sponsors to participate in the feeding programs. Young was responsible for reviewing Warren’s sites.
Warren and Young admitted that they conspired to form Write of Passage to obtain funds fraudulently from the feeding program. This was done by inflating the number of children fed on claims submitted to DHS. Write of Passage was paid $253,817.44. Warren and Young both shared in the proceeds from these inflated claims as Warren paid Young cash and indirectly by checks made payable to one of Young’s relatives.
Warren and Young are the fourth and fifth persons to plead guilty concerning USDA feeding program funds. The previous charges filed in this investigation and Warren and Young’s Information detail alleged fraud involving over $10 million in USDA feeding program funds. Francine Leon, Kattie Jordan and Christopher Nichols previously pled guilty to conspiracy to commit wire fraud.
The statutory penalty for conspiracy to commit wire fraud is not more than 20 years imprisonment, not more than a $250,000 fine, or both, and not more than three years supervised release.
The investigation is ongoing and is being conducted by the USDA–Office of Inspector General, Federal Bureau of Investigation, Internal Revenue Service–Criminal Investigations, and United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Jana Harris and Allison W. Bragg. If you are aware of any fraudulent activity regarding these feeding programs, please email that information to [email protected].
Jury Finds Former ThermoEnergy Corp. CFO Andrew Melton Guilty on Federal Charges of Mail Fraud and Failure to Pay Employment TaxRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, David Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), and Christopher A. Henry, Internal Revenue Service (IRS) Special Agent in Charge, announced today that a federal jury found former ThermoEnergy Corporation Chief Financial Officer (CFO) Andrew Thurman Melton, 69, of Little Rock, guilty on twelve counts of mail fraud and five counts of failure to account for or pay to the IRS federal taxes withheld from employee paychecks.
United States District Judge Billy Roy Wilson presided over the three-day trial, which concluded Thursday with the jury verdict. Melton will be sentenced by Judge Wilson at a later date.
Melton served as CFO for ThermoEnergy Corp., a technology marketing company based in Little Rock, from 2005 through July 2009. The United States presented evidence which proved that Melton used approximately $109,000 of ThermoEnergy funds to pay for a personal debt arising from a judgment entered against him in a prior lawsuit. The prior judgment was for money Melton owed as a result of his failure to pay an interior decorator for work done at Melton’s home. This judgment resulted in an order garnishing Melton’s wages to satisfy the debt. Instead of complying with that order, however, Melton directed ThermoEnergy funds to be paid to satisfy the order.
The jury further found Melton guilty of failing to pay to the IRS approximately $1.8 million in payroll taxes withheld from ThermoEnergy employees’ wages. Beginning in 2005, Melton was responsible for the collection, accounting, and payment of federal withholding taxes, including Social Security withholding, federal unemployment taxes, and federal disability taxes on behalf of ThermoEnergy employees. During the last two quarters of 2005, all four quarters of 2006, 2007, 2008, and the first quarter of 2009, Melton failed to file IRS form 941 reporting the amounts withheld and failed to pay any of the required employee withholding taxes.
The statutory penalty for mail fraud, a violation of 18 U.S.C. § 1341, is not more than 20 years imprisonment, not more than a $250,000 fine, or both, and not more than three years supervised release. The statutory penalty for failure to pay employment taxes, a violation of 26 U.S.C. § 7202, is not more than five years imprisonment, not more than a $250,000 fine, or both, and not more than three years supervised release.
The investigation was conducted by the FBI and the IRS—Criminal Investigations. First Assistant United States Attorney Patrick C. Harris and Assistant United States Attorney Hunter Bridges prosecuted the case for the United States.
Bryant Woman Pleads Guilty to Conspiracy in Scheme to Steal Feeding Program FundsRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that Francine Leon, 42, of Bryant, pled guilty to an Information charging her with conspiring to commit wire fraud. The charge relates to a conspiracy to fraudulently obtain United States Department of Agriculture (USDA) program funds intended to feed children in low income areas during the school year.
Today’s plea hearing took place in Little Rock before United States District Judge James M. Moody, Jr. Judge Moody will sentence Leon at a later date.
The USDA funds the Child and Adult Care Feeding Program, which includes an at-risk after school component. In Arkansas, the feeding programs are administered by the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. Once approved, they can provide meals as part of the feeding program and be reimbursed based on the number of eligible meals they serve.
According to facts read at the plea hearing, Leon operated as a sponsor for a feeding program through an organization called "Brighter Kids, Brighter Futures." At times during the period charged in the Information, Leon approved sites in Cotton Plant, Wheatley, Poplar Grove, Morrilton, Brinkley and West Helena. Leon admitted that she was recruited by former DHS employee Tonique Hatton—who is indicted on similar charges in case number 4:14-cr-000250 JM—and another former DHS employee to participate. They explained that they would do all of the paperwork and make sure Leon received the maximum amount possible for each Site. They did this through overstating the number of children that were fed. In exchange, out of the money she received, Leon paid cash initially back to Hatton and then later to the second DHS employee. Leon received a total of approximately $1,003,630. Leon withdrew approximately $534,710 in cash. Leon paid Hatton between approximately $100,000 - $110,000 and the other DHS employee between approximately $60,000 - $80,000.
Leon is the third person to plead guilty concerning USDA feeding program funds. The previous charges filed in this investigation and Leon’s information detail alleged fraud involving over $10 million in USDA feeding program funds. Kattie Jordan and Christopher Nichols previously pled guilty to conspiracy to commit wire fraud on August 3, 2015 and January 15, 2016, respectively.
The statutory penalty for conspiracy to commit wire fraud is not more than 20 years imprisonment, not more than a $250,000 fine, or both, and not more than three years supervised release.
The investigation is ongoing and is being conducted by the USDA–Office of Inspector General, Federal Bureau of Investigation, Internal Revenue Service–Criminal Investigations, and United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Jana Harris and Allison W. Bragg. If you are aware of any fraudulent activity regarding these feeding programs, please email that information to [email protected].
Wynne Man Sentenced to 30 Years for Sexual Exploitation of A MinorRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, along with Raymond R. Parmer, Jr., Special Agent in Charge of the Homeland Security Investigations (HSI) New Orleans Field Division, announced today that Joshua Logan Thornton, age 32, of Wynne, was sentenced to 360 months or 30 years in federal prison for Sexual Exploitation of a Minor.
Thursday’s sentencing was before United States District Judge Billy Roy Wilson, and comes following Thornton’s guilty plea on November 24, 2015. Thornton was indicted on October 7, 2015, in a three-count Indictment charging him with sexual exploitation of a minor, distribution of child pornography, and possession of child pornography.
"The internet continues to be the weapon of choice for individuals who exploit children for their own gratification," Thyer said. "Because of this our office reiterates the importance of adults keeping an open line of communication with children in an effort to prevent and detect crimes such as this. A sentence of 30 years sends a strong message that these heinous acts will not be tolerated and will be prosecuted."
On July 24, 2015, Arthur Clements was arrested for possession of child pornography by HSI Baltimore agents. During an interview Clements admitted that he shared child pornography through an internet streaming program with a person named "John," who performed sexually explicit acts with a minor live on the internet streaming program. "John" was later identified as Joseph Thornton of Wynne, Arkansas.
Through forensic analysis of Clements’s computer, law enforcement recovered multiple videos sent to Clements by Thornton. Upon reviewing the videos, law enforcement officers observed a distinctive quilt with yellow and orange butterflies on a turquoise background was present in three videos. The three videos depicted Thornton performing sexually explicit acts on the minor.
On August 6, 2015, HSI agents executed a search warrant at Thornton’s residence in Wynne. Agents seized a number of electronic devices, as well as the butterfly quilt located in the videos.
The minor female admitted that Thornton performed sex acts on her and instructed her not to tell anyone about it.
Thornton provided a full confession. Thornton admitted that he touched the minor sexually with his hands and his penis and that he would do this on live streaming internet. Thornton admitted that the abuse of the minor began eight months prior and stopped the month he learned news that Jared Fogle, the Subway pitchman, was arrested on child pornography charges. Thornton admitted that he shared the images of him and the minor with at least two people on the internet.
HSI agents also forensically examined the computer seized from Thornton’s home and observed approximately 5,000 images of child pornography, including multiple images and videos of the minor.
"Individuals who produce child pornography are directly responsible for what is, in plain language, the rape of children. Production of child pornography steals the innocence of children and destroys lives," HSI New Orleans Special Agent in Charge Raymond R. Parmer Jr. said. "Criminals who prey on children will continue to be one of the agency’s highest priorities in order to protect the innocent from these terrible crimes."
There is no parole in the federal system. When Thornton is released upon completion of his 30 year sentence, he will serve five years of supervised release. Conditions of his supervised release include registering as a sex offender and no contact with minors.
HIS led the investigation. Assistant United States Attorney Kristin H. Bryant prosecuted the case for the United States.
Two Former Arkansas Officials Sentenced for Bribery SchemeRead the Press Release
A former deputy director of the Arkansas Department of Human Services (ADHS), a multibillion-dollar state agency, and a former probation officer in Crittenden County, Arkansas, and West Memphis, Arkansas, councilmember were sentenced today in Little Rock, Arkansas, for engaging in a bribery scheme involving the owner of two mental health companies, announced Assistant Attorney General Leslie R. Caldwell of the Department of Justice’s Criminal Division and First Assistant U.S. Attorney Patrick C. Harris of the Eastern District of Arkansas.
Steven B. Jones, 51, of Marion, Arkansas, the former deputy director of ADHS, was sentenced to 30 months for conspiracy to commit bribery concerning programs receiving federal funds and honest services wire fraud and for federal funds bribery. Co-conspirator Phillip W. Carter, 47, also of Marion, was sentenced to 24 months for conspiracy to commit bribery concerning programs receiving federal funds and honest services wire fraud.
According to the plea agreements, Carter and a local pastor served as intermediaries in a bribery scheme involving Jones and Theodore Suhl, the owner of two businesses that provided inpatient and outpatient mental health services to juveniles. Jones admitted that, beginning in April 2007 and while serving as ADHS deputy director, he solicited and accepted multiple cash payments and other things of value from Suhl. Suhl provided the cash payments and other things of value to Jones through Carter and the pastor, and in return, Jones admitted that he agreed to perform official acts that benefitted Suhl and his businesses.
As part of their pleas, both Jones and Carter admitted that they and other members of the conspiracy concealed their activity and dealings by, among other things, holding periodic meetings at restaurants in Memphis, Tennessee, or in rural Arkansas where they would not be easily recognized; funneling the cash payments through the pastor’s church; providing the bribe payments to Jones in cash so that the transactions would not be easily traceable; and speaking in code during phone conversations.
On Dec. 2, 2015, Suhl was indicted on one count of conspiracy to commit bribery and honest services fraud, three counts of honest services fraud, one count federal funds bribery and one count of interstate travel in aid of bribery and is awaiting trial. The charges and allegations contained in that indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The FBI’s Little Rock Field Office investigated both cases. Assistant U.S. Attorney Angela S. Jegley of the U.S. Attorney’s Office for the Eastern District of Arkansas and Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section prosecuted Jones’s case. Trial Attorneys Edward P. Sullivan, Lauren Bell and Gwendolyn A. Stamper of the Criminal Division’s Public Integrity Section prosecuted Carter’s case.
Two Former Arkansas Officials Sentenced to Prison for Bribery SchemeRead the Press Release
LITTLE ROCK—Steven B. Jones, a former deputy director of the Arkansas Department of Human Services (ADHS), a multi-billion dollar state agency, and Phillip W. Carter, a former probation officer in Crittenden County, Arkansas, and West Memphis, Arkansas, councilmember were sentenced today for engaging in a bribery scheme involving the owner of two mental health companies, announced Assistant Attorney General Leslie R. Caldwell of the Department of Justice’s Criminal Division and First Assistant U.S. Attorney Patrick C. Harris of the Eastern District of Arkansas.
On Thursday, United States District Judge Billy Roy Wilson sentenced Jones, 51, of Marion, Arkansas, to 30 months in the Bureau of Prisons after pleading guilty to a two-count Information charging him with conspiracy to commit bribery concerning programs receiving federal funds and honest services wire fraud and for federal funds bribery. Jones also must serve one year of supervised release and pay a $6,000 fine. Co-conspirator Carter, 47, also of Marion, was sentenced to 24 months in prison and two years of supervised release for conspiracy to commit bribery concerning programs receiving federal funds and honest services wire fraud.
According to the plea agreements, Carter and a local pastor served as intermediaries in a bribery scheme involving Jones and Theodore Suhl, the owner of two businesses that provided inpatient and outpatient mental health services to juveniles. Jones admitted that, beginning in April 2007 and while serving as ADHS deputy director, he solicited and accepted multiple cash payments and other things of value from Suhl. Suhl provided the cash payments and other things of value to Jones through Carter and the pastor, and in return, Jones admitted that he agreed to perform official acts that benefitted Suhl and his businesses.
As part of their pleas, both Jones and Carter admitted that they and other members of the conspiracy concealed their activity and dealings by, among other things, holding periodic meetings at restaurants in Memphis, Tennessee, or in rural Arkansas where they would not be easily recognized; funneling the cash payments through the pastor’s church; providing the bribe payments to Jones in cash so that the transactions would not be easily traceable; and speaking in code during telephone conversations.
On Dec. 2, 2015, Suhl was indicted on one count of conspiracy to commit bribery and honest services fraud, three counts of honest services fraud, one count federal funds bribery and one count of interstate travel in aid of bribery and is awaiting trial. The charges and allegations contained in that indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The FBI’s Little Rock Field Office investigated both cases. Assistant U.S. Attorney Angela S. Jegley of the U.S. Attorney’s Office for the Eastern District of Arkansas and Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section prosecuted Jones’s case. Trial Attorneys Edward P. Sullivan, Lauren Bell and Gwendolyn A. Stamper of the Criminal Division’s Public Integrity Section prosecuted Carter’s case.
Convicted Murderer and Known Gang Member Among Two Guilty for Gun Crimes After TrialsRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced guilty verdicts in two separate gun-related trials that each concluded on Wednesday, February 17, 2016. Antuan Rochelle Gaines, 36, of Little Rock was found guilty by a jury of being a felon in possession of a firearm, and Justin Patrick Stegall, 30, of Benton, was found guilty by a jury for being in possession of an unregistered short-barreled rifle. United States District Judge Kristine G. Baker presided over the two-day trial of Gaines and United States District Court Judge Billy Roy Wilson presided over the two-day trial of Stegall.
According to evidence presented at trial, on November 4, 2013, Little Rock Police Department homicide detectives and other uniformed officers approached Gaines and six other known members of the Highland Park Pirus—a Blood-affiliated gang in central Arkansas—in the parking lot adjacent to Ugly Mike’s Records on 12th Street to attempt to conduct interviews in connection with the homicide of Marcus Hunter. When Little Rock Patrol Officer Charles Starratt got out of his patrol car, he saw Gaines reach toward his waist band and bend down behind a car. He then heard the sound of metal hitting the asphalt.
When Officer Starratt searched behind the car he found a loaded Kimber, .45 caliber pistol. The pistol had been reported stolen after a residential burglary a few months prior. Gaines, who has a prior conviction for first-degree murder in Case No. CR-94-1194 in Pulaski County Circuit Court, was indicted on July 2, 2014, for being a felon in possession of a firearm.
As presented during the Stegall trial, on September 10, 2013, Stegall was discovered to have a loaded, unregistered short barreled in his vehicle, which was located in a shopping center in Benton. Benton Police Department officers had responded to the scene to locate the vehicle after dispatch received a call from a driver who reported that a man had flashed a gun at him in a road rage incident. A vehicle matching the description given by the victim was seen driving into the shopping center. An employee of one of the stores informed the responding officers that she noticed the vehicle because it zoomed through a shopping center parking lot crowded with children and families, which she thought was dangerous.
This employee then directed police to a neighboring restaurant where they located Stegall, the driver of the vehicle. After Stegall’s arrest officers found the loaded, unregistered short barreled rifle, along with seven other firearms in his vehicle.
Gaines’ sentencing will be scheduled by the Court at a later date. Stegall is set to be sentenced on May 19, 2016. Both defendants face a statutory maximum penalty of 10 years in the Bureau of Prisons and a fine of up to $250,000.
The Gaines case was investigated by the Little Rock Police Department and prosecuted by Assistant United States Attorneys Benecia B. Moore and Julie Peters. The Stegall case was investigated by the Benton Police Department and Bureau of Alcohol, Tobacco, Firearms & Explosives and prosecuted by Assistant United States Attorneys Edward Walker and Erin O’Leary.
Clinton Man Sentenced to 20 Years for Sexual Exploitation of A Minor by A ParentRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, along with Raymond R. Parmer, Jr., Special Agent in Charge of the Homeland Security Investigations (HSI) New Orleans Field Division, announced today that Nicholas DeRose, age 44, of Clinton, was sentenced to 240 months or 20 years in federal prison for Sexual Exploitation of a Minor by a Parent.
On August 2, 2013, HSI Special Agents located a photo-sharing profile named "dadof2dau" sharing child pornography images of a minor female. The images included hidden camera images of the minor female in the bathroom and images taken of her genitals while she was sleeping.
HSI agents then determined that the IP address belonging to the user of "dadof2dau" returned to Nicholas DeRose of Clinton, Arkansas. HSI Special Agents obtained a search warrant for DeRose’s residence on January 27, 2014.
DeRose admitted that he sent and received images containing child pornography. DeRose then admitted that he was the person who took photographs of the minor female located in the "dadof2dau" photo-sharing account. DeRose admitted to taking pictures of the minor off and on for one year.
DeRose told HSI agents that he located a "spy-shop" in Little Rock, Arkansas, and purchased a small, battery-powered video camera. He would then hide the camera in the minor’s bathroom and bedroom in order to capture images of the minor in various stages of undress. DeRose admitted to drilling a hole in the handle of a plastic toilet plunger and hiding the camera in the handle to record video of the minor. DeRose stated that this method worked "very well." DeRose stated that the camera recorded and saved the video files onto a small memory card within the camera. DeRose admitted that he would then retrieve the camera and would transfer the video to his "gray HP laptop computer."
DeRose was indicted on June 4, 2014, in a two count Indictment charging him with sexual exploitation of a child by a parent and distribution of child pornography. On July 10, 2015, DeRose pled guilty to sexual exploitation of a child by a parent.
There is no parole in the federal system. When DeRose is released upon completion of his 20 year sentence, he will serve 10 years of supervised release. Conditions of his supervised release include registering as a sex offender and no contact with minors under the age of 18.
"Sometimes those who pose the most risk to our children are those who they trust the most." United States Attorney Christopher R. Thyer stated. "While the sentence imposed today cannot undo the irreparable harm committed by DeRose, it sends the message that law enforcement will find those who exploit the most vulnerable victims in our society and send them to prison for decades."
"Child sexual abuse is one of the most heinous crimes HSI investigates as it steals the innocence of children and leaves lasting scars on victims," said Raymond R. Parmer Jr. "Criminals who produce and distribute child pornography further victimize the innocent by sharing the evidence of these terrible crimes, and as such, these cases will continue to be one of the agency’s highest priorities."
Former High School Photographer Indicted for Lying to A Federal Agent and Internet StalkingRead the Press Release
LITTLE ROCK, Ark.—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Raymond R. Parmer, Jr., special agent in charge of Homeland Security Investigations (HIS) New Orleans, announced today the indictment of Christian Trey Ashcraft, the owner of Ashven photography and former photographer of high school students and activities in the Pine Bluff, Arkansas area.
The two-count Indictment, returned by a federal Grand Jury on January 5, 2016, charges Ashcraft, 40, of Pine Bluff, with one count of lying to a federal agent and one count of internet stalking.
Ashcraft appeared before United States Magistrate Judge Beth Deere today. A trial is scheduled for February 22, 2016, in front of United States District Judge Kristine G. Baker.
The charges in the Indictment are based on an investigation that began in August 2014, when a minor disclosed to the Maumelle Police Department that Seth Ganahl had previously asked her to engage in illicit sexual activity on multiple occasions. Execution of a search warrant on Ganahl’s email account revealed that he was emailing with the user of [email protected], who was purporting to be a 15-year-old minor female. During the email exchange, Ganahl repeatedly asked the user of [email protected] to send him sexually explicit photographs.
Ganahl was indicted by a federal Grand Jury in the Eastern District of Arkansas on February 4, 2015, and is currently scheduled for trial on June 27, 2016.
During the investigation, agents developed information that led them to believe that Ashcraft was the real user of [email protected]. Agents interviewed Ashcraft on December 30, 2014, and he denied being the user of [email protected].
On January 13, 2015, agents obtained a federal search warrant for [email protected]. Law enforcement analysis of the contents of this account indicated that Ashcraft communicated with multiple individuals while posing as young teenage girls.
Agents also observed that Ashcraft, using [email protected], sent sexually explicit photographs of an adult female—while posing as this female—to at least two individuals over a significant period of time.
Agents again interviewed Ashcraft on April 1, 2015, at which time he admitted that he was the user of email account [email protected].
"The internet continues to be the weapon of choice for many individuals because they believe it provides them anonymity," Thyer said. "This case demonstrates that law enforcement and the United States Attorney’s Office will track down individuals who abuse the internet for their own deviant purposes, and that these people will be prosecuted to the fullest extent of the law."
"Lying to a federal agent is a serious crime that carries significant penalties," said Parmer Jr. "While revenge porn legislation is under debate in many states, the facts of this particular case are already covered under federal stalking laws. Not only were these actions distasteful, they were criminal, and HSI will continue to investigate and seek prosecution of cyber crimes as one of its highest priorities. "
Lying to a federal agent, a violation of 18 U.S.C.§ 1001(a)(2), carries a penalty of not more than five years imprisonment, not more than three years of supervised release, and a fine of up to $250,000.
Internet stalking, a violation of 18 U.S.C. § 2261A(2)(B), carries a penalty of not more than five years imprisonment, not more than three years of supervised release, and a fine of up to $250,000. This investigation was conducted by the Arkansas State Police and HSI. It is being prosecuted by Assistant United States Attorney Kristin Bryant.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
North Little Rock Man Pleads Guilty to Conspiracy in Scheme to Steal Feeding Program FundsRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that Christopher Nichols, 25, of North Little Rock, pled guilty to a Superseding Information charging him with conspiring to commit wire fraud. The charge relates to a conspiracy to fraudulently obtain United States Department of Agriculture (USDA) program funds intended to feed children in low income areas during the school year.
Today’s plea hearing took place in Little Rock before United States District Judge J. Leon Holmes. Judge Holmes will sentence Nichols at a later date.
On February 4, 2015, a Federal Grand Jury indicted Nichols on charges of wire fraud as part of a scheme to fraudulently obtain USDA program funds. The USDA funds the Child and Adult Care Feeding Program, which includes an at-risk after school component. In Arkansas, the feeding programs are administered by the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. Once approved, they can provide meals as part of the feeding program and be reimbursed based on the number of eligible meals they serve.
According to facts read at the plea hearing, Nichols operated as a sponsor for a feeding program through an organization called "A Vision For Success." Nichols’ aunt worked for DHS and DHS records indicate that his aunt submitted and approved the application for the 2014 contract year and approved the application for the 2014 contract year. "A Vision for Success" had two approved sites. The first was Waits Auto Repair in North Little Rock which at the time, was an auto business operated by Nichols’ uncle, Anthony Waits. The second site had a non-existent address. Claims were submitted that falsely represented the average daily attendance and greatly inflated the number of meals provided because no children were ever fed.
Nichols received a total of approximately $333,136.67. Of this money received, Nichols withdrew approximately $325,735.80 in cash, with a majority of that going to Waits. Nichols’s benefit was approximately $25,000–$35,000. Waits was charged in a Second Superseding Indictment filed on November 4, 2015, with conspiracy as part of a scheme to fraudulently obtain USDA program funds along with Waits’ wife, Gladys Waits, Jacqueline Mills, Dorothy Harper, and Tonique Hatton.
Nichols is the second person to plead guilty out of the nine people previously indicted concerning USDA feeding program funds. The nine indictments detail alleged fraud involving over $9 million in USDA feeding program funds. Kattie Jordan previously pled guilty to conspiracy to commit wire fraud on August 3, 2015.
The statutory penalty for conspiracy to commit wire fraud is not more than 20 years imprisonment, not more than a $250,000 fine, or both, and not more than 3 years supervised release.
The investigation is ongoing and is being conducted by the USDA–Office of Inspector General, Federal Bureau of Investigation, Internal Revenue Service–Criminal Investigations, and United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Jana Harris and Allison W. Bragg. If you are aware of any fraudulent activity regarding these feeding programs, please email that information to [email protected].
Osceola Man Sentenced to 94 Months in Prison for Possession of HandgunRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas and David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI) announced that on December 9, 2015, Steven Cuble, age 38, of Osceola, was sentenced to 94 months imprisonment followed by three years of supervised release by U.S. District Judge James M. Moody, Jr. The 94 months are to be served consecutive to the five-year state sentence he is currently serving.
Cuble was indicted in June 2014 for a single count of being a felon in possession of a firearm. He pled guilty on April 2, 2015, at which time he admitted that on March 20, 2014, he possessed a loaded 9mm handgun. According to facts read at Cuble’s change of plea hearing, on March 20, 2014, officers with the Osceola Police Department attempted to serve two felony warrants on Cuble when he fled a short distance in a vehicle. When Cuble was stopped, he was arrested on those warrants. The officers then searched his car and found the loaded handgun between the driver’s seat and center console. Some plastic baggies, scales, and other drug paraphernalia were also found in Cuble’s car, which led to a sentencing enhancement. At the time of offense, Cuble was serving a five-year suspended imposition of sentence on a state drug case.
The offense of felon in possession of a firearm, 18 U.S.C. § 922(g)(1), carries a possible sentence of up to 10 years’ imprisonment, not more than three years supervised release, and up to a $250,000 fine.
The investigation was conducted by the United States Attorney’s Office, FBI, and the Osceloa Police Department. It was prosecuted by Assistant United States Attorney Michael Gordon.
Former Razorback Star Pleads Guilty in Oxycodone CaseRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced that Cedric Cobbs, 34, of Little Rock, pled guilty today to using a communication device to facilitate a drug offense before U.S. District Court Judge D.P. Marshall, Jr. Cobbs is a former Arkansas Razorback star running back who went on to play in the NFL with the New England Patriots and Denver Broncos.
Cobbs was one of 33 people indicted in an oxycodone conspiracy in October 2014. In exchange for the guilty plea, the United States dismissed a count for conspiracy to distribute oxycodone. On Wednesday, Cobbs admitted he sold oxycodone pills to the head of the conspiracy, Charolda Walton. Specifically, on March 16, 2014, in a deal set up by a series of calls and texts, Cobbs delivered oxycodone pills to Walton’s house, where Walton was waiting with a customer to buy the pills. The transaction was observed by law enforcement. According to the facts read in open court, Cobbs also sold oxycodone to Walton on March 15, and dealt with Walton on multiple other occasions.
Use of a communication device to facilitate a drug offense is punishable by up to four years’ imprisonment, a $250,000 fine, and not more than one year supervised release. Sentencing before Judge Marshall is set for July 21, 2016.
The investigation was conducted by the Drug Enforcement Administration, with assistance from several law enforcement agencies including the Little Rock Police Department, the Benton Police Department and the Saline County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Chris Givens.
Eleven Defendants Facing Federal Drug and Firearms Charges in North Little RockRead the Press Release
North Little Rock, Ark.—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), and North Little Rock Police Department (NLRPD) Chief Mike Davis, announced today the unsealing of three federal indictments charging 11 defendants with federal drug and firearms offenses in North Little Rock, and in particular in the Dixie Addition neighborhood. The indictments were returned by the Grand Jury on December 2, 2015, and were unsealed today following a coordinated roundup of the charged defendants.
The arrests resulted from an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, Operation Dixie Days, worked jointly with the FBI and NLRPD Narcotics Unit. During the course of the investigation in 2014 and 2015, law enforcement utilized three Title III court-authorized wiretaps, intercepting hundreds of drug-trafficking calls. Law enforcement agents conducted controlled buys totaling almost one kilogram (2.2 pounds) of crack cocaine. During the roundup, agents seized several ounces of crack cocaine, two stolen firearms, and more than $10,000 in cash.
Agents also executed a search warrant today at 924 E Street in the Dixie Addition, where they recovered some of the crack cocaine and cash. Based on the investigation, it is alleged that during 2014 and 2015, Harold Barbee, Byron Leavy, Yvette Foster, and others utilized 924 E Street as a “trap house,” meaning a location for storing and selling cocaine and crack cocaine. During the daytime hours, customers entered the front door of the house to buy cocaine and crack cocaine. During the evening hours, customers purchased cocaine and crack cocaine by knocking on a back bedroom window. On one occasion in October 2015, after midnight, officers observed 14 individuals approach the window of 924 E Street to buy drugs in the span of an hour.
“The Dixie Addition area of North Little Rock is filled with hard-working, law-abiding citizens; unfortunately, crack cocaine and drugs have plagued this area for a long time,” Thyer said. “Through Operation Dixie Days, the FBI and NLRPD have worked to rid that community of the violent drug distributors that plague that neighborhood. We hope the peaceful neighbors of the Dixie Addition will rest better tonight knowing both that their community is safer and that federal and state authorities will continue their law enforcement efforts in Dixie Addition and throughout North Little Rock. Let today’s arrests be a sharp warning to drug dealers in the area—we will not tolerate you poisoning the streets where our children and law abiding, hard-working citizens reside.”
The defendants arrested today will appear before U.S. Magistrate Judge Joe J. Volpe on December 9, 2015, at 3:00 p.m. for plea and arraignment. One defendant was already in state custody, and will appear before Judge Volpe at 2:00 p.m. on December 15, 2015. Two defendants, Dexter Mack and Adrion Crawford, are now fugitives. Most of the defendants are residents of North Little Rock (see below for complete list of defendants and charges).
“Today’s arrests are confirmation of our dedication to make an impact on drug crime in the state of Arkansas, specifically today, in the Dixie area,” stated David Shepard, Assistant Special Agent in Charge of the Little Rock FBI. “We appreciate the determined efforts of the United States Attorney’s Office and the North Little Rock Police Department.”
“North Little Rock Police Department is grateful for the spirit of cooperation with the FBI and U.S. Attorney’s Office to bring closure to drug sales in the Dixie community,” Chief Davis said. “North Little Rock Police will remain proactive in this community to ensure a peaceful lifestyle for its residents.”
The counts in today’s unsealed indictments include conspiracy to distribute and possess with intent to distribute cocaine and crack cocaine, distribution and possession with intent to distribute cocaine and crack cocaine, possession of a firearm in furtherance of a drug trafficking crime, and use of a telephone to facilitate a drug trafficking crime.
The investigation was conducted by FBI and NLRPD. The cases are being prosecuted by Assistant U.S. Attorneys Julie Peters and Hunter Bridges. An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty. See Attachment 1 for potential penalties. The defendants charged include:
Case No. 4:15CR00302 BRW:
HAROLD BARBEE, aka BOP, age 50, of North Little Rock
Conspiracy to Distribute/Possess with Intent to Distribute Crack Cocaine and Cocaine
Distribution of Crack Cocaine
Use of a Telephone in Furtherance of a Drug-Trafficking Crime
BYRON NEAL LEAVY JR., aka LIL RED, age 24, of North Little Rock
Conspiracy to Distribute/Possess with Intent to Distribute Crack Cocaine and Cocaine
Distribution of Crack Cocaine and Cocaine
Use of a Telephone in Furtherance of a Drug-Trafficking Crime
DAMIEN BANK, aka D, age 33, of North Little Rock
Conspiracy to Distribute/Possess with Intent to Distribute Crack Cocaine and Cocaine
Use of a Telephone in Furtherance of a Drug-Trafficking Crime
YVETTE FOSTER, aka YVETTE RHOTEN, age 50, North Little Rock
Conspiracy to Distribute/Possess with Intent to Distribute Crack Cocaine and Cocaine
Use of a Telephone in Furtherance of a Drug-Trafficking Crime
DEXTER MACK, aka D-MAC, age 43, of North Little Rock
Conspiracy to Distribute/Possess with Intent to Distribute Crack Cocaine and Cocaine
Use of a Telephone in Furtherance of a Drug-Trafficking Crime
Case No. 4:15CR00305 JLH:
DARNISHER HORN, aka D, age 27, of North Little Rock
Conspiracy to Distribute/Possess with Intent to Distribute Crack Cocaine and Cocaine
Distribution of Crack Cocaine
Possession of a Firearm in Furtherance of a Drug-Trafficking Crime
Use of a Telephone in Furtherance of a Drug-Trafficking Crime
XAVIER BRIGHT, aka ZAY, age 27, of North Little Rock
Conspiracy to Distribute/Possess with Intent to Distribute Crack Cocaine and Cocaine
Use of a Telephone in Furtherance of a Drug-Trafficking Crime
DARIUS BROWN, age 27, of Scott
Conspiracy to Distribute/Possess with Intent to Distribute Cocaine
JUSTIN BURNETT, age 32, of McGehee
Conspiracy to Distribute/Possess with Intent to Distribute Cocaine
Use of a Telephone in Furtherance of a Drug-Trafficking Crime
CARL EUSEPPI, aka B, age 35, of Little Rock
Conspiracy to Distribute/Possess with Intent to Distribute Cocaine
Use of a Telephone in Furtherance of a Drug-Trafficking Crime
Case No. 4:15CR00304 JM:
ADRION CRAWFORD, aka AC, age 31, of North Little Rock
Distribution of Crack Cocaine
Statutory Penalties
Former Saline County Sheriff Pennington Sentenced to Prison Term for Wire FraudRead the Press Release
Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, along with David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), announced today that Bruce Pennington, age 64, of Fayetteville, Arkansas, the former Saline County Sheriff, was sentenced to one year plus one day of incarceration following his conviction for wire fraud. On August 3, 2015, Pennington pleaded guilty to a one-count Information charging him with wire fraud for using money from his campaign account to pay for personal items and expenses charged to his Sheriff’s Office Visa card.
Pennington held the office of Saline County Sheriff from 2008 until he resigned on October 1, 2013. At the sentencing hearing in open court on December 7, 2015, before U.S. District Court Judge Kristine G. Baker, Pennington received a sentencing enhancement for abusing a position of public trust. The maximum potential penalty for a violation of Title 18, United States Code, Section 1343 (wire fraud) is up to twenty years imprisonment, up to three years supervised release, and a fine of up to $250,000. Based on the United States Sentencing Guidelines, Pennington faced an advisory sentencing range of 12 to 18 months. Judge Baker sentenced Pennington to one year plus one day of incarceration, a $2,500 fine, three years supervised release, and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation’s Ark Trust Public Corruption Task Force. It was prosecuted by Assistant U.S. Attorney Julie Peters, in cooperation with Faulkner County Prosecuting Attorney Cody Hiland who is serving as a Special Prosecutor in Saline County Circuit Court Case No. 63CR-14-313.
Owner of Arkansas Juvenile Mental Health Facilities Indicted on Bribery ChargesRead the Press Release
The owner of two Arkansas mental health companies that provide inpatient and outpatient mental health services to juveniles was indicted yesterday for engaging in a scheme to bribe a former deputy director of the Arkansas Department of Human Services (ADHS), announced Assistant Attorney General Leslie R. Caldwell of the Department of Justice’s Criminal Division.
A federal grand jury in the Eastern District of Arkansas returned the six-count indictment on Dec. 2, 2015, charging Theodore E. Suhl, 50, of Warm Springs, Arkansas, with conspiracy to commit bribery and honest services fraud, three counts of honest services fraud, one count federal funds bribery and one count of interstate travel in aid of bribery.
The indictment alleges that Suhl bribed Steven B. Jones, former deputy director of ADHS, to perform acts in his official capacity that benefitted Suhl and his mental health companies and to provide internal ADHS information to Suhl. Beginning in approximately April 2007, Suhl, Jones and Phillip W. Carter, a former probation officer in Crittenden County, Arkansas, and a West Memphis, Tennessee, councilmember, allegedly periodically met at restaurants in Memphis, Tennessee, and rural Arkansas in order for Suhl to request assistance from Jones. In exchange for Jones’ agreement to perform official acts, Suhl allegedly paid Jones by issuing checks made payable to the pastor of Carter’s church that Carter and the pastor then deposited and cashed in order to provide cash payments to Jones.
Jones previously pleaded guilty to federal funds bribery and conspiracy for his involvement in the scheme. Carter previously pleaded guilty to conspiracy to commit federal funds bribery and honest services wire fraud. Jones and Carter currently await sentencing.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Trial Attorneys Lauren Bell, John D. Keller and Amanda R. Vaughn of the Criminal Division’s Public Integrity Section are prosecuting the case. The FBI’s Little Rock Field Office investigated the case.
Owner of Arkansas Juvenile Mental Health Facilities Indicted on Bribery ChargesRead the Press Release
WASHINGTON—The owner of two Arkansas mental health companies that provide inpatient and outpatient mental health services to juveniles was indicted yesterday for engaging in a scheme to bribe a former deputy director of the Arkansas Department of Human Services (ADHS), announced Assistant Attorney General Leslie R. Caldwell of the Department of Justice’s Criminal Division.
A federal grand jury in the Eastern District of Arkansas returned the six-count indictment on Dec. 2, 2015, charging Theodore E. Suhl, 50, of Warm Springs, Arkansas, with conspiracy to commit bribery and honest services fraud, three counts of honest services fraud, one count federal funds bribery and one count of interstate travel in aid of bribery.
The indictment alleges that Suhl bribed Steven B. Jones, former deputy director of ADHS, to perform acts in his official capacity that benefitted Suhl and his mental health companies and to provide internal ADHS information to Suhl. Beginning in approximately April 2007, Suhl, Jones and Phillip W. Carter, a former probation officer in Crittenden County, Arkansas, and a West Memphis, Tennessee, councilmember, allegedly periodically met at restaurants in Memphis, Tennessee, and rural Arkansas in order for Suhl to request assistance from Jones. In exchange for Jones’ agreement to perform official acts, Suhl allegedly paid Jones by issuing checks made payable to the pastor of Carter’s church that Carter and the pastor then deposited and cashed in order to provide cash payments to Jones.
Jones previously pleaded guilty to federal funds bribery and conspiracy for his involvement in the scheme. Carter previously pleaded guilty to conspiracy to commit federal funds bribery and honest services wire fraud. Jones and Carter currently await sentencing.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Trial attorneys Lauren Bell, John D. Keller and Amanda R. Vaughn of the Criminal Division’s Public Integrity Section are prosecuting the case. The FBI’s Little Rock Field Office investigated the case.
Delta Crossroads Leader Sentenced to 20 Years in PrisonRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; along with David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI); Colonel William J. Bryant, of the Arkansas State Police; and Donald Oakes, Chief of the West Memphis Police Department; announced today that Rafael McDaniel, age 33, of West Memphis, Arkansas, was sentenced to 20 years imprisonment following his convictions before Chief U.S. District Judge Brian S. Miller.
On March 20, 2015, McDaniel was convicted of drug trafficking and firearms offenses following a jury trial in Case No. 13CR329-1 BSM before Chief Judge Miller. At today’s sentencing hearing Chief Judge Miller determined that McDaniel was responsible for the distribution of between 840 grams and 2.8 kilograms of crack cocaine in West Memphis between January 2012 through November 2013. Chief Judge Miller further enhanced McDaniel’s sentence because McDaniel obstructed justice by lying about his drug and gun activities during his testimony at trial. Chief Judge Miller sentenced McDaniel to 15 years imprisonment on the drug trafficking offenses (Counts One, Two, and Twenty-Five), and a consecutive five years on the firearm offense (Count Twenty-Six), for a total of 20 years. There is no parole in the federal system. McDaniel will serve a term of four years of supervised release following his release from imprisonment, and must pay a $400 special assessment.
"We are committed to working together in this district to dismantle drug trafficking organizations operating in our communities," stated Thyer. "When local law enforcement asks for assistance from federal partners as the West Memphis Police Department did in this case, everyone benefits. Law enforcement, at all levels, is able to take advantage of increased manpower and resources to bring a case to a successful close.
"Our commitment to eradicating drug trafficking and violent crime has never been stronger. With this conviction, another violent drug dealer has been removed from the streets for a very long time."
"Today’s sentencing is a reflection of our continued commitment to addressing crime in Northeast Arkansas," SAC Resch said. "We appreciate the efforts of our partners, the United States Attorney’s Office, Arkansas State Police, and the West Memphis Police Department."
At trial, Rafael McDaniel was convicted of the following offenses:
• Count One: conspiracy to distribute and to possess with intent to distribute more than 28 grams of crack cocaine, in violation of 21 U.S.C. 846. This count carries a potential punishment of not less than five years and up to 40 years imprisonment, a fine of up to $5 million, and not less than four years and up to life supervised release.
• Count Two and Count Twenty-Five: Possession with intent to distribute cocaine base, commonly known as crack cocaine, in violation of 21 U.S.C. 841(a)(1). Each count carries a punishment of up to 20 years imprisonment, a fine of up to $1 million, and not less than three years and up to life supervised release.
• Count Twenty-Six: Possession of a firearm in furtherance of a drug trafficking crime, in violation of 18 U.S.C. 924(c). This count carries a punishment of not less than five years and up to life imprisonment, which must be served consecutive to Counts One, Two, and Twenty-Five, up to a $250,000 fine, and up to five years supervised release.
McDaniel was acquitted of Count Eighteen (use of a telephone in furtherance of a drug trafficking crime, in violation of 21 U.S.C. § 843), and Count Three (possession of a firearm in furtherance of a drug trafficking crime, in violation of 18 U.S.C. 924(c)).
Count Two stemmed from a search warrant executed by the West Memphis Police Department at McDaniel’s residence in West Memphis on February 19, 2012. Officers recovered crack cocaine, a kilogram press with cocaine residue, more than $12,000 in cash, and 14 firearms, many of which were loaded, among other items. Counts Twenty-Five and Twenty-Six stemmed from a search warrant executed by the FBI at McDaniel’s residence in West Memphis on November 18, 2013. Agents recovered cocaine, crack cocaine, scales with cocaine residue, more than $7,000 in cash, and five firearms, among other items.
The charges are the result of a state and federal Organized Crime and Drug Enforcement Task Force (OCDETF) investigation dubbed "Delta Crossroads." The investigation, which primarily focused on drug trafficking in West Memphis, was initiated by the FBI at the request of the West Memphis Police Department, which tasked several narcotics detectives to assist with the investigation. During the course of the investigation, law enforcement utilized three court-authorized wiretaps, during which hundreds of calls pertaining to cocaine and crack cocaine trafficking and firearms offenses were intercepted. On July 2, 2014, a federal grand jury returned a 26-count Superseding Indictment charging 18 individuals in Crittenden County with participating in the drug conspiracy and with firearms offenses. Rafael McDaniel was the sole defendant to go to trial. Sixteen defendants pleaded guilty in the Eastern District of Arkansas to drug trafficking offenses; one defendant resolved his charges as part of a related indictment in the Western District of Tennessee. Two defendants charged in the original indictment on November 6, 2013 were not included in the Superseding Indictment: one defendant resolved his charges as part of a related indictment in the Western District of Tennessee, and one defendant is deceased.
McDaniel’s co-defendants were previously sentenced before Chief Judge Miller, and received the following terms of incarceration:
- Demetrius Barrett, age 32, of West Memphis, 72 months imprisonment.
- Brandon Bohannon, age 31, of Marion, 168 months imprisonment.
- Brent Bohannon, age 23, of Jonesboro, 48 months imprisonment.
- Willie Brown, age 37, of West Memphis, 48 months imprisonment.
- Willie Cooper, age 52, of West Memphis, 60 months imprisonment.
- David Edwards, age 30, of Olive Branch, MS, 60 months imprisonment.
- Wendell Glenn, age 29, of West Memphis, 84 months imprisonment.
- David Green, age 27, of West Memphis, 120 months imprisonment.
- Delvin Green, age 25, of West Memphis, 121 months imprisonment.
- Courtney Hamilton, age 25, of West Memphis, 60 months imprisonment.
- John Hayes, age 50, of Houston, Texas, 96 months imprisonment.
- Michael McDonald, age 29, of West Memphis, 188 months imprisonment.
- Deloricko Prewitt, age 34, of West Memphis, 120 months imprisonment.
- Jessie Robinson, age 25, of West Memphis, 81 months imprisonment.
- Detarious Robinson, age 23, of West Memphis, 63 months imprisonment.
- Ronnie Sanes, age 35, of West Memphis, 96 months imprisonment.
"Operation Delta Crossroads made a tremendous impact on our community," West Memphis Police Chief Oakes said. "Many of the subjects arrested in Operation Delta Crossroads were extremely violent while they funneled drugs into our neighborhoods. This case is an example of the positive influence that we can have on a community when local, state, and federal agencies cooperate with each other."
The investigation was conducted by the United States Attorney’s Office, FBI, ASP, and West Memphis Police Department. It was prosecuted by Assistant United States Attorneys Julie Peters and Benecia Moore.
Two More Arrests as Result of USDA Feeding Program FraudRead the Press Release
LITTLE ROCK—Two more people have been indicted for their roles in a scheme to steal federal money. Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that Anthony Waits, age 37, of England, Arkansas, and Dorothy Harper, age 50, of England, Arkansas, were arrested after the filing of an 89-count indictment.
The second superseding indictment, returned by a federal Grand Jury on November 4, 2015, charges Waits and Harper with conspiracy as part of a scheme to fraudulently obtain United States Department of Agriculture (USDA) program funds. Harper is also charged with 16 counts of wire fraud.
According to the indictment, the USDA funds the Child and Adult Care Feeding Program, which includes an at-risk afterschool component. In Arkansas, the feeding programs are administered by the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. Once approved, they can provide meals as part of the feeding program and be reimbursed based on the number of eligible meals they serve.
The indictment states that Harper operated as a sponsor for a feeding program through an organization called Kingdom Land Youth Outreach Ministries. She had feeding sites in England, Keo, Allport, Tucker, Toltec, Coy, and Altheimer, Arkansas.
Harper made unauthorized cash payments to Waits, whose wife worked at DHS. In exchange for these payments, Waits’ wife approved Harper’s applications, knowing that inflated claims would be submitted and helping Harper avoid DHS detection of the fraud. The indictment states that Harper falsely represented her average daily attendance and the number of meals provided. This fraud exceeded $1.3 million.
The indictment alleges that Waits recruited additional sponsors who also submitted inflated claims. Those sponsors gave Waits a percentage of the federal money they received in exchange for Waits’ wife, the DHS employee, approving the inflated claims.
Waits and Harper join the three other individuals who were already named as defendants: Gladys King, who was Waits’ wife and DHS employee who approved fraudulent claims; Tonique Hatton, another DHS employee who approved fraudulent claims; and Jacqueline Mills, another feeding program sponsor.
Also named in the indictment is co-conspirator Kattie Jordan, a program sponsor who has already pleaded guilty to conspiring to commit wire fraud. Jordan stole $3.6 million in federal funds. Investigation is ongoing but indicates that Mills stole $2.5 million.
The statutory penalty for conspiring to commit wire fraud is not more than 20 years imprisonment, not more than a $250,000 fine, or both, and not more than 3 years supervised release. The statutory penalty for wire fraud is not more than 20 years imprisonment, not more than a $250,000 fine, or both, and not more than 3 years supervised release.
The investigation is ongoing and is being conducted by the United States Department of Agriculture—Office of the Inspector General, Federal Bureau of Investigation, Internal Revenue Service—Criminal Investigations and United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Jana Harris and Allison W. Bragg. If you are aware of any fraudulent activity regarding these feeding programs, please email that information [email protected].
An indictment contains only allegations. Defendants are presumed innocent until proven guilty.
Forty-Seven Defendants Facing Drug, Gun, and Fraud Charges in Ongoing Investigation in Helena-West HelenaRead the Press Release
HELENA-WEST HELENA, Ark.—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), Dax Roberson, Acting Special Agent in Charge of the Office of Inspector General Southwest Region of the United States Department of Agriculture (USDA), and Colonel William J. Bryant, of the Arkansas State Police, announced today the simultaneous unsealing of eleven federal indictments charging 39 defendants as part of a continuing investigation into drug, firearm, and fraud offenses in Phillips County. The indictments were returned by the Grand Jury on November 4, 2015, and were unsealed today following a coordinated roundup of the charged defendants, along with eight defendants charged as part of the same investigation with state drug offenses.
The arrests resulted from two Organized Crime and Drug Enforcement Task Force (OCDETF) investigations, Operation Delta Blues and Operation Plastic Castle, which began in 2011 with a goal to target drug trafficking, violent crime, and public corruption in the Arkansas Delta, including Phillips County. Early Tuesday morning, approximately 300 law enforcement officers and support personnel, including approximately 130 tactical officers, executed 17 federal and 8 state arrest warrants in a targeted takedown that resulted in the arrests of 13 federal defendants and five state defendants on drug, firearm, or fraud charges. Seven defendants are now fugitives. Most of the defendants are residents of Helena-West Helena (see attachments for complete list of defendants, charges and penalties).
"Just over four years ago, during the original Operation Delta Blues, I made a commitment to help clean up the Arkansas Delta," Thyer said. "It has been evident for some time that violent drug traffickers are overrunning the Arkansas delta, including Phillips County. Today’s operation is a reminder to those criminals that the federal and state law enforcement authorities will pursue you until this community is returned to its law-abiding citizens. Where drugs, violence, fraud and corruption fester, we will take action."
From 2012 through 2015, agents with the FBI, ASP, and 1st Judicial District Drug Task Force coordinated more than 60 controlled purchases of drugs resulting in the acquisition of significant amounts of crack cocaine. Agents also utilized two court-authorized wiretaps in the drug-trafficking and firearms investigation. FBI and USDA agents also engaged in undercover transactions involving the illegal transfer of Supplemental Nutrition Assistance Program (SNAP) benefits.
"Today’s arrests are evidence of our continued resolve to make an impact on crime in the Arkansas delta," Resch said. "We appreciate the unfaltering efforts of the United States Attorney’s Office, Arkansas State Police, and the 1st Judicial District Drug Task Force."
"The Arkansas State Police is a committed partner in a team of law enforcement officers with a common objective to restore hope, law, and order in communities overwhelmed by drug dealers and violent offenders who have no regard for the community or the people they prey upon," Bryant said.
In addition to the arrest warrants served today, 24 defendants who were charged in a single indictment with defrauding the USDA by selling their SNAP benefits at the Stop and Shop in Helena-West Helena for cash will receive summonses over the course of the next several days. SNAP benefits provide economic assistance for low-income individuals to purchase food.
The indictment alleges that Khalid Alkarsh, who owns Stop and Shop, and Bakil Mohamed Alqirsh, who is a cashier and manager at the convenience store, allowed SNAP recipients to trade their SNAP benefits for ineligible items such as beer and cigarettes, and for cash. When a SNAP recipient redeemed their benefits for cash, Alkarsh and Alquirsh paid the recipient approximately 60% of the transaction amount, and the Stop and Shop kept 40%. The loss amount for the alleged fraud is in excess of $250,000.
The counts in today’s unsealed indictments include conspiracy to distribute and possess with intent to distribute crack cocaine, distribution and possession with intent to distribute crack cocaine, possession of a firearm in relation to a drug trafficking crime, use of a telephone to facilitate a drug trafficking crime, conspiracy to unlawfully redeem SNAP benefits, and unlawful transfer of SNAP benefits.
Those arrested today will be arraigned in federal court in Little Rock before United States Magistrate Judge Patricia S. Harris beginning at 2 p.m. on Thursday, November 12, 2015. Defendants receiving summonses will be arraigned on Friday, November 20, 2015, at 1 p.m.
The investigations were conducted by FBI, USDA, and ASP, in partnership with the 1st Judicial District Drug Task Force. The cases are being prosecuted by Assistant U.S. Attorney Julie Peters. An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
West Helena Press Release Attachment
Cabot Man Sentenced to 15 Years in Prison Following Shootout with Law EnforcementRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that U.S. District Court Judge J. Leon Holmes sentenced Mark Lyle Dodson, age 54, of Cabot, Arkansas, to five years’ imprisonment for assault with a deadly weapon to be followed by 10 years’ imprisonment for discharging a firearm during and in relation to a crime of violence, for a total sentence of 15 years’ imprisonment. Three years of supervised release will follow the prison sentence.
A Grand Jury indicted Dodson following a November 2013 shootout with members of the Jacksonville Police Department Special Response Team (SRT), who were assisting agents of the Drug Enforcement Administration (DEA) execute a narcotics search warrant at Dodson’s Cabot home. When uniformed SRT members entered Dodson’s residence shouting "police" and "search warrant," he barricaded himself in an interior bedroom and twice fired a 16-gauge shotgun through a closed bedroom door while SRT members tried to enter. Pellets from his blasts struck three SRT members, hospitalizing one, and prompted return fire that hit Dodson. Minutes later, members of the same SRT team that Dodson fired upon gave him life-saving aid as he sat injured and bleeding on the bedroom floor.
Dodson pled guilty to the assault and discharge offenses on May 12, 2015. Under the terms of his plea agreement, the parties agreed upon a 15-year sentence, and the United States dismissed charges for conspiracy to distribute methamphetamine and two additional counts each for assault and discharge that stemmed from the shootout.
The DEA Little Rock Field Office, Jacksonville Police Department SRT, and Pulaski County Sheriff’s Office investigated this matter. Assistant United States Attorneys Alexander D. Morgan and Anne Gardner prosecuted the case for the United States.
Little Rock Doctor Pleads Guilty to Health Care Fraud Admits to $2.2 Million in Fradulent BillingRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, David Shepard, Assistant Special Agent in Charge for the Little Rock Field Office of the Federal Bureau of Investigation (FBI), and Special Agent in Charge CJ Porter of U.S. Department of Health and Human Services–Office of Inspector General (HHS–OIG) announced that Dr. Robert Barrow, 62, of Little Rock, pled guilty today to conspiring to commit health care fraud before U.S. District Court Judge J. Leon Holmes.
Dr. Barrow owned and operated a Little Rock medical clinic named "Your Doctor’s Office." At today’s hearing, Dr. Barrow admitted that he conspired with Billy Marc Young, a local massage therapist. Dr. Barrow referred patients to Young and Young’s services were subsequently billed to health insurers under Dr. Barrow’s provider number as if they were physical therapy—even at times when Dr. Barrow himself was out of the state or out of the country in places like Las Vegas, Hawaii, and London. Bills to health insurers ultimately surpassed $2.2 million. In the plea agreement, Dr. Barrow admitted that he abused his position of trust and that his scheme victimized health insurers and former patients alike in that some former patients bore out-of-pocket expenses (for example, co-payments) believing that they were receiving physical therapy.
Young previously pled guilty in April 2014 in connection with Dr. Barrow’s scheme in case number 4:14-cr-00056 DPM.
"Our healthcare system relies on trust," Thyer said. "Insurers process millions upon millions of claims each year on good faith. Doctors and other providers who abuse this trust by submitting fraudulent claims for services that are not properly reimbursable or not provided place the entire system in jeopardy and will be prosecuted to the fullest extent of the law."
"Dr. Barrow’s theft from his patients not only deprived his patients of their money, but also their faith—and the public’s faith—in the health care system," Shepard said. "Today’s sentencing demonstrates the FBI’s resolve to work with our partners at HHS-OIG and the U.S. Attorney’s office to stamp out health care fraud."
"The scam perpetrated by Dr. Barrow defrauded Medicare and private insurers, and it also deprived patients of proper health care," Porter said. "HHS–OIG is dedicated to aggressively investigating this type of criminal activity because of the impact on quality of care and the health care economy as a whole."
Under the terms of the plea agreement, Dr. Barrow is required to pay $702,361.12 in restitution to Medicare and Blue Cross (less what Young pays) and up to $100,000 to former patients who bore out-of-pocket expenses believing that they were receiving physical therapy. In exchange, the United States has agreed to dismiss all remaining charges against Dr. Barrow and his wife, Dr. Angela Barrow.
Conspiracy to commit health care fraud is punishable by up to ten years’ imprisonment, a $250,000 fine, and not more than three years’ supervised. Sentencing before Judge Holmes will follow at a later date.
The case was the result of a multi-year joint investigation by the FBI and HHS-OIG. It was prosecuted by Assistant United States Attorneys Alex Morgan and Shannon Smith.
Parks Sentenced to 27 Months for Wire Fraud Relating to Fraudulent Refund Coal Tax Credits and Forfeits MillionsRead the Press Release
Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), and Christopher A. Henry, Special Agent in Charge of the IRS-Criminal Investigation Nashville Field Office; announced today that, Stephen K. Parks, 62, of Little Rock, Arkansas, was sentenced to 27 months imprisonment, three years of supervised release, and ordered to pay $845,000 in restitution to the IRS. Parks pled guilty to a Federal Information charging him with wire fraud relating to a fraudulent investment scheme involving the sale of refined coal tax credits on May 27, 2015.
In addition to serving 27 months in federal prison, Parks agreed to forfeit jewelry purchased with money obtained from the fraudulent sale of tax credits, and consented to the forfeiture of all property seized to date in Case No. 4:13-CV-00054 SWW, to include approximately $7.5 million, plus other pieces of real and personal property, with the exception of a home at 2020 N. Spruce Street, Little Rock, AR, and approximately $73,000 seized from that home.
The refined coal tax credit was added to the tax code by the American Jobs Creation Act of 2004. The credit requires that the refined coal be produced by the taxpayer at a refined coal production facility during the 10-year period beginning on the date the facility was originally placed in service, and sold by the taxpayer to an unrelated person.
On or about June 1, 2010, Parks formed Global Coal, LLC, and served as its CEO, President and Manager. He was also President of Ecotec Coal, LLC and King Coal, LLC. Global Coal has never refined any coal or sold any refined coal to an unrelated third party, as required by Title 26, United States Code, Section 45. Global Coal has never had a facility in place to refine coal, as required by 26 U.S.C. § 45. As of March 2015, Global Coal has failed to file any federal income tax returns and has never purported to create refined coal tax credits pursuant to 26 U.S.C. § 45 in any federal tax return. Despite knowledge of these facts, Parks approved and facilitated the sale of nonexistent Global Coal refined coal tax credits through a broker to the investor, representing that the tax credits were valid and available for sale. Parks subsequently used a large portion of the proceeds of that sale for his personal use and the use of his family.
In late 2011, a broker acting on behalf of Parks and Global Coal began communicating with the representative of a potential investor regarding Global Coal and Ecotec Coal refined coal tax credits. Parks represented to the broker that Global Coal tax credits were available for sale and was in communication with the broker throughout the course of the Global Coal tax credit transaction.
On January 9, 2012, the investor agreed to purchase 845,000 Global Coal tax credits and 268,000 Ecotec Coal tax credits for total payment of $723,450. On January 13, 2012, the investor wired $549,250 from a bank in Iowa into King Coal Holding LLC’s account at Delta Trust & Bank in Arkansas. A backdated invoice dated December 30, 2011, reflected the sale of 845,000 Class C Units of interest of Global Coal, LLC, the sole benefit of which is $845,000 of Refined Coal Tax Credits to the investor. The invoice reflected the total due as $549,250 to be wired to a Delta Trust & Bank account with account name "KHC, LLC c/o Global Coal". The Global Coal, LLC subscription documents reflect that Stephen Parks is the manager and CEO and contain his signature. The documents also acknowledge receipt by Global Coal of $549,250 from the investor. A separate invoice was sent for the Ecotec Coal tax credits, which directed that $174,200 be wired Ecotec Coal’s account at First Security Bank.
From the proceeds of the Global Coal tax credit sale, Parks wrote a $40,000 check to his wife for "Coal Rights Arkansas." This $40,000 was part of approximately $1.3 million paid to Parks’ wife from 2008-2012 for "advanced royalties." According to a "Royalty Agreement" backdated to December 1, 2007, Parks’ wife "controls certain mineral rights within the state of Arkansas and King Coal, LLC . . . desires to extract coal from these properties . . ." In fact, Parks’ wife had no interest in any land with coal rights in Arkansas and had no mineral rights to coal during the time she was receiving the "advanced royalties." In 2014 tax court pleadings, the explanation of Parks’ wife’s receipt of royalties was altered, alleging that Parks’ wife "assisted and facilitated the negotiations" between the parties to a lease agreement regarding coal rights.
Also from the proceeds of the Global Coal tax credit sale, a check to Delta Trust & Bank for $301,271.50 was used to purchase a cashier’s check. That cashier’s check was used to purchase 4817 Stonewall Road, Little Rock, Arkansas, a residence located behind the Parks family residence, and was purchased to be torn down and used as a back yard for the Parks family.
The case was investigated by special agents from the FBI and the IRS-Criminal Investigations.
Justice Department Expands Violence Reduction Network to Five New SitesRead the Press Release
DETROIT— Deputy Attorney General Sally Q. Yates and Assistant Attorney General Karol V. Mason of the Office of Justice Programs (OJP) today announced that five new cities will join the Violence Reduction Network (VRN), a comprehensive approach to reducing violent crime in communities around the country. The new partnering cities are Little Rock, Arkansas; West Memphis, Arkansas; Compton, California; Flint, Michigan and Newark, New Jersey. They join the inaugural sites of Detroit; Chicago; Camden, New Jersey; Wilmington, Delaware; and Oakland and Richmond, California.
"The Violence Reduction Network uses every tool in the Justice Department’s toolbox to help communities combat violent crime. And we deploy these resources in a targeted, strategic, data-driven way to get the most bang for our buck," said Deputy Attorney General Sally Quillian Yates. "While we’re still early in this process with the five cities we announced last year, we’re encouraged by the progress we’ve made so far. And we’re looking forward to getting down to work in the five new cities we’re announcing today."
Today’s announcement was made before an audience of U.S. Attorneys, police chiefs, sheriffs, mayors, local leaders from the ten sites and Department of Justice representatives at the second annual VRN Summit in Detroit. Through the VRN, the Justice Department enlists tactical and operational expertise available from the Bureau of Justice Assistance, the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Marshals Service (USMS), the Drug Enforcement Administration (DEA), the Executive Office of the United States Attorneys, the Community Oriented Policing Services Office and the Office on Violence Against Women.
Deputy Attorney General Yates cited the progress reported by the current VRN sites in their first year. In Camden, for example, the FBI assisted the local police display wanted felons’ information on digital billboards, resulting in the arrest of two felons The ATF helped the Camden County Police Department acquire National Integrated Ballistic Information Network (NIBIN) equipment and training. NIBIN has allowed the county to initiate eTrace, an Internet-based firearms tracing and analysis tracking process to enhance criminal investigations.
In Chicago, police used closed-captioned television to post videos of sexual assault suspects on Facebook, leading to arrests. With the advice and technical support of the DOJ VRN partners, the Wilmington Police Department created a new homicide unit and the homicide
clearance rate rose from less than 10 percent to more than 50 percent on current-year cases. Detroit started to use sophisticated data analysis techniques to identify warning signals for domestic violence homicides to prevent these crimes and in August 2015 coordinated with the FBI in using the Digital Billboards Initiative to feature a homicide suspect.
Oakland and Richmond, California strengthened their relationships with the DOJ law enforcement partners in significant ways. The ATF embedded three full-time ATF special agents in the Richmond Police Department to assist with commercial armed robberies, shootings, and homicides. A national USMS task force operation in Contra Costa County resulted in the apprehension of over 130 people, including 12 homicide suspects.
The Oakland Police Department (OPD) continues to focus on ways to use analytics to enhance their crime prevention and violence reduction efforts. They have received two training sessions in social network analysis through the VRN. OPD is planning to conduct a full group audit to extract "on the ground" intelligence of known offenders and gangs through focus-group style working sessions with law enforcement and community organizations and will use this intelligence to build and support their social network analysis. The Oakland Police Department also participated in Crime Analysis for Executive Training and is now revamping their crime analysis unit.
This past summer, the FBI, DEA, and USMS participated in the Richmond’s Safe City Summer: Crime Prevention Public Safety Fair, a collaborative effort at Richmond City Hall to combat recent increases in violence and interacted with over 4,000 community members on their agency’s federal law enforcement role in assisting the police department with crime prevention efforts.
The DEA, through their El Paso Intelligence Center (EPIC), is providing all the VRN sites with the opportunity to work collaboratively to enhance their investigations and operations that target criminal activities.
In addition to announcing the five new VRN sites, Deputy Attorney General Yates announced Smart Policing grant awards totaling over $2 million to law enforcement agencies to develop innovative, data-driven approaches to crime.
For more VRN information visit www.bja.gov/Programs/VRN.html.
Cabot Man Sentenced to 25 Years for Sexual Exploitation of A Minor by A ParentRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, along with David Shepard, Assistant Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigations (FBI), announced today that United States District Court Judge Susan Webber Wright sentenced Matthew Hiner, age 28, of Cabot, to 300 months, or 25 years, in federal prison for Sexual Exploitation of a Minor by a Parent.
On August 22, 2013, an undercover agent from the FBI Child Exploitation Task Force, operating out of a satellite office in Washington, D.C., was online in a public chat room and began chatting with someone using the username "daddylooking4fam," later identified as Hiner. Username "daddylooking4fam" posted "i’m a single 25 year old active bi dad of a 5 year old son from usa."
The agent then engaged in a private chat conversation with "daddylooking4fam." During this chat, "daddylooking4fam" told the officer that he had shared custody of a 5-year-old child. "Daddylooking4fam" said that he was "looking for a like-minded family to merge with and raise a very loving and active family with." "Daddylooking4fam" then asked the agent to chat on a private Yahoo! chat.
The agent then engaged in a private Yahoo! chat with a Yahoo! user utilizing the screen name "Matthew Hiner." The user of "Matthew Hiner" sent the agent five photographs which Hiner described as depicting himself and a 5-year-old child. The first photograph depicted a photograph of a child who Hiner described as a 5-year-old child to whom he had access. The second photograph depicted an adult male standing in front of a house. The adult male was identified as Hiner. The remaining three photographs depicted sexually explicit images of Hiner and the child.
Hiner was arrested on August 23, 2013. After being read his Miranda rights, Hiner admitted that he had been in incest chat sites and had engaged in sex acts with the five-year-old child and his friend’s 11- and 8-year-old sons. Hiner admitted to taking pictures of himself performing sex acts on the 5-year-old child, and admitted that he took the three pictures that were sent to the undercover officer. Hiner also took pictures of the 11-year-old and himself engaging in sex acts.
There is no parole in the federal system. When Hiner is released upon completion of his 25 year sentence, he will serve a lifetime of supervised release. Conditions of his supervised release require him to register as a sex offender and have no contact with minors under the age of 18. Hiner still faces three rape counts and one count of sexual assault in the 2nd degree in Pulaski County Circuit Court.
"Our office is committed to protecting the innocence of society’s most vulnerable victims, our children, especially when they are being abused by those they trust the most." Thyer stated. "Today’s sentence cannot undue the harm done by Hiner but it does send the message that actions like his will not be tolerated and will result in lengthy prison sentences."
"The Little Rock Field Office of the FBI is dedicated to investigating and stopping the kind of heinous acts of abuse which were committed by Hiner on innocent children," Shepard said. "We would like to thank our partners at the United States Attorney’s Office for their continued dedication to prosecuting predators like Hiner."
The FBI led the investigation. Assistant United States Attorney Kristin H. Bryant prosecuted the case for the United States.
Stuttgart Man Pleads Guilty to Arson at County Courthouse AnnexRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Grover Crossland, Resident Agent in Charge for the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), announced that Donald Aaron, age 34, of Stuttgart, appeared before United States District Court Judge J. Leon Holmes on Monday and pled guilty to an indictment charging him with the arson of the Stuttgart Courthouse Annex building.
On September 23, 2014, a fire destroyed the Stuttgart Courthouse Annex building in downtown Stuttgart. This building housed the Arkansas County Sherriff’s Office, offices of the Arkansas State Police, the 911 coordinator, the Office of Emergency Management, the Arkansas County Tax Assessor, the County Tax Collector, the County Judge and the Emergency Operations Center. The building eventually had to be demolished with a total loss of approximately $2.2 million.
In January 2015, a federal grand jury returned a two-count Indictment charging Aaron with arson for the fire at the Annex. After Aaron pled guilty to one count of maliciously destroying a building that is used in interstate commerce by means of fire, with injury resulting from the fire, the remaining count in the Indictment of maliciously destroying by means of fire a building which receives federal funds was dismissed. Under 18 U.S.C. § 844(i), the arson count carries with it a mandatory sentence of not less than seven years, not more than 40 years imprisonment, with not more than five years of supervised release to follow. Aaron will also be required to pay restitution in the amount of $2,207,334.25.
Through investigation the ATF determined that the fire at the Annex was incendiary. Based upon photographs taken of the fire, examination of the scene, and witness interviews, the fire investigators determined that the fire originated in the rear hallway of the first floor of the structure. Surveillance cameras from various businesses in downtown Stuttgart showed an individual, later determined to be Aaron, walking to and from the area of the Annex just prior to the fire, at times carrying objects and at other times hiding his face. Aaron is seen in the area near a broken first-floor window, which was the entry point to the locked Annex building.
According to the facts read at Monday’s hearing, following the return of the indictment in January Aaron was arrested and admitted to lighting the fire that destroyed the Annex. Aaron was attempting to smoke methamphetamine using tin foil and a lighter when flame from the foil shot up approximately 18 inches high. Aaron then threw the flaming foil down on the ground and fled the building, while the foil was still on fire. This fire caught the building on fire.
Aaron will be sentenced by Judge Holmes at a later date.
The case was investigated by ATF Special Agents Timothy Boles and David Oliver, with assistance from the Arkansas State Police. Assistant United States Attorney Chris Givens prosecuted the matter for the United States.
Eighth Person Charged for Role in Federal Feeding Program FraudRead the Press Release
LITTLE ROCK— Another feeding program sponsor has been charged for her role in a scheme to steal federal money. Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that Maria Carmen Nelson, age 49, has been arrested after the filing of a complaint.
The complaint, filed today, charges Nelson with wire fraud as part of a scheme to fraudulently obtain United States Department of Agriculture (USDA) program funds. Following her arrest, Nelson was arraigned and released on bond by Judge J. Thomas Ray. Nelson is the eighth person charged in an ongoing investigation. She is an employee of a security firm that guards the Federal Building in Little Rock.
The USDA funds the Child and Adult Care Feeding Program, which includes an at-risk afterschool component. In Arkansas, the feeding programs are administered by the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. Once approved, they can provide meals as part of the feeding program and be reimbursed based on the number of eligible meals they serve.
The complaint states that Nelson operated as a sponsor for a feeding program through an organization called "Securing Our Future." It alleges that Nelson applied with DHS to participate as a sponsor, and the DHS employee who approved her application also approved the application of Michael R. Lee, who was indicted in July 2015. The complaint states that she falsely represented her average daily attendance of children who were fed. In this way, Nelson stole over $575,000 of federal funds, according to the complaint.
You may report fraudulent activity regarding these feeding programs by contacting [email protected].
The statutory penalty for wire fraud is not more than 20 years imprisonment, not more than a $250,000 fine, or both, and not more than 3 years supervised release. The investigation is ongoing and is conducted by the United States Department of Agriculture – Office of the Inspector General, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigations, and United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Jana Harris and Allison W. Bragg.
A complaint contains only allegations. Defendants are presumed innocent until proven guilty.
Dumas Police Officer and Five Associates Charged with Drug ConspiracyRead the Press Release
Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, along with David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), and Arkansas State Police Colonel William J. Bryant announced today that Dumas Police Officer James Ivory Edgerson, age 37, of Dumas, has been charged by federal criminal complaint with drug conspiracy. Also charged were Kendrick Lamar Edgerson, age 43, of Little Rock; Gregory Lamont Charles, age 41, of Little Rock; Steven Sherrod Miles, age 42, of Dumas; Rodney Lariel Edgerson, age 36, of Little Rock; and Eli Haynes III, age 40, of Arlington, Texas.
James Edgerson was arrested Wednesday night. The other five defendants listed in the complaint were arrested Thursday morning. All defendants except Haynes appeared before United States Magistrate Judge J. Thomas Ray on Thursday. Haynes, who was arrested in Texas, will be seen in Texas by a United States Magistrate Judge on Friday. The five Arkansas defendants were detained pending bond hearings to determine whether the defendants remain in federal custody until an Indictment is returned. The charge in the complaint must be presented to the federal Grand Jury for Indictment within 30 days.
During the execution of three federal search warrants Thursday morning in connection with the arrests, agents seized approximately 28 ounces of powder cocaine, one ounce of crack cocaine, one pound of marijuana, five firearms including a suppressor, and $222,000 in cash.
According to the complaint, James Ivory Edgerson (Edgerson) has been a sworn patrol officer with the Dumas Police Department for approximately 14 years. Between May and September 2015, Edgerson made several drug deliveries of marijuana, cocaine, and methamphetamine to confidential sources. Law enforcement also obtained a court-authorized wiretap on Edgerson’s phone during the conspiracy period.
When Edgerson was arrested he was in a vehicle with approximately three ounces of powder cocaine and one ounce of crack cocaine. Agents executing a search warrant at his home also found approximately $16,000 cash, several firearms and an unregistered firearm suppressor.
"It is extremely disheartening any time a member of law enforcement commits a crime and breaks the trust that the people of his community have placed in him or her," Thyer said. "The citizens of the Eastern District of Arkansas deserve better, and deserve to know that their law enforcement members will honor their vow to protect and serve. When that vow—and that trust—is broken, my office will make sure those individuals are punished and answer for their crimes."
The complaint alleges that Kendrick Lamar Edgerson (Kendrick) was intercepted over Edgerson’s phone engaging in drug trafficking activity with Edgerson. After Kendrick participated in a delivery of nine ounces of cocaine on August 31, 2015, Kendrick fled from police during a traffic stop. As a result of that traffic stop, state authorities cited Kendrick for possession of cocaine with the purpose to distribute, possession of marijuana, and fleeing from a police officer.
Also according to the complaint, on multiple occasions, Edgerson met with Gregory Lamont Charles (Charles) directly before and after controlled deliveries of cocaine, and Charles is believed to be a cocaine supplier. Agents executed a search warrant at Charles’s house Thursday morning and located approximately 25 ounces of cocaine, $206,000 cash, and a firearm.
Edgerson provided Steven Sherrod Miles (Miles) with drugs to sell, and Miles split the profit from the sale of the drugs with Edgerson. Agents located one pound of marijuana at Miles’s home during the execution of a search warrant. In August 2015, Edgerson traveled to Arlington, Texas, to purchase nine ounces of methamphetamine from Eli Haynes III (Haynes). Upon returning to Arkansas, Edgerson sold this methamphetamine.
The complaint also alleges that Rodney Lariel Edgerson (Rodney), who was intercepted on Edgerson’s phone, met with Edgerson on August 15, 2015, and sold him five to six pounds of marijuana.
Rodney and Kendrick are brothers, and are also cousins of Edgerson.
"Edgerson, a police officer with the Dumas Police Department, was arrested today on drug conspiracy charges," Resch said. "Together with our partners, the United States Attorney’s Office, OCDETF, Arkansas State Police, Tri County Drug Task Force, ArkTrust Public Corruption Task Force, and Jefferson County Sheriff’s Office and with the cooperation of the Dumas Police Department, we will aggressively investigate these charges."
The maximum potential penalty for a violation of Title 21, United States Code, Section 846 (drug conspiracy) is up to life imprisonment, up to life supervised release, and a fine of up to $10,000,000.
The investigation was part of Organized Crime and Drug Enforcement Task Force (OCDETF) Operation Blue Dream. The case was investigated by the Federal Bureau of Investigation, Arkansas State Police, Jefferson County Sheriff’s Office, and Tri County Drug Task Force. It is being prosecuted by Assistant U.S. Attorneys Edward Walker and Julie Peters.
The charges stemmed from an investigation by the FBI’s ArkTrust Public Corruption Task Force. The ArkTrust Public Corruption Task Force is comprised of FBI Agents, and Task Force Officers from the Arkansas State Police Department, Pulaski County Sheriff’s Office, and the Little Rock Police Department. If you think you see public corruption contact the public corruption hotline at (501) 221-8200.
A complaint contains only allegations. The defendants are presumed innocent unless and until proven guilty.
Local Physician and 18 Others Charged in Federal Prescription Drug Distribution IndictmentRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Joseph Shepard, Assistant Special Agent in Charge of the Little Rock District Office of the Drug Enforcement Administration (DEA), announced Wednesday the return of a federal Indictment charging a Little Rock physician and 18 others as part of a continuing DEA national initiative to target illegal pharmaceutical drug activity.
The Indictment, returned by a federal grand jury on Wednesday, charges Dr. Richard Johns, 49, of Little Rock, and 18 others in a conspiracy to distribute oxycodone. The conspiracy operated in Lonoke, White, and Pulaski Counties. Dr. Johns was charged in Lonoke County on May 18, 2015 with similar offenses.
On May 18, 2015, the Lonoke County Sheriff’s Office took Dr. Johns into custody charging him with 187 counts of Fraudulent Practices, a class C state felony. This investigation first began November 2014 when detectives responded to an overdose death of an individual in Cabot. The Sheriff’s Office solicited the assistance of the DEA, and the agencies began a joint investigation into the doctor and the suspected criminal enterprise headed by Dr. Johns. The investigation determined that 187 fraudulent prescriptions had been filled and distributed since July 2014 within the illicit market in Lonoke County alone. The prescriptions totaled approximately 16,830 oxycodone pills with a street value of $505,000.
During the course of the ongoing investigation, DEA determined that Dr. Johns was part of a distribution network spanning other counties in which he would write oxycodone prescriptions in individuals’ names, selling them for $500 each. Co-conspirators would bring names and dates of birth to Dr. Johns with the intent of buying a prescription for oxycodone. Dr. Johns would issue the prescription without examining the individual, and in many cases, without ever having met the individual. Prescriptions were filled at local pharmacies, and the oxycodone tablets sold in the community for $30 each. Several co-conspirators acknowledged purchasing such fraudulent prescriptions from Dr. Johns since 2011.
"As alleged in the indictment, the doctor writing these fraudulent prescriptions is no different than a common, street-level drug dealer on the street, and should be treated as such," Thyer said. "As a society we have granted certain health care professionals the right to prescribe and use highly addictive drugs to treat their patients. When that right is abused, we will aggressively pursue those health care professionals as the criminals that they are. I am pleased that this doctor and his network have been stopped, and this office will continue to target the doctors, pharmacists, and other health-care providers who illegally allow these dangerous and highly addictive drugs to end up on our streets."
In January 2014, as part of a national effort, the DEA New Orleans Field Division, which includes the DEA Little Rock office, launched an aggressive campaign that targeted the largest sources of illegally diverted pharmaceuticals in Arkansas, Louisiana, Mississippi, and Alabama. This effort, dubbed Operation Pilluted, involved the extensive investigation of rogue practitioners, pharmacists, and other DEA Registrants, as well as the aggressive pursuit of more traditional criminal organizations involved in the distribution of pharmaceuticals. Under the auspices of Operation Pilluted, concerted efforts were initiated to heighten community awareness concerning the perils of prescription drug diversion and the strategic implementation/strengthening of associated diverted pharmaceutical laws.
In May 2015, DEA, as part of Operation Pilluted, announced the return of two Indictments charging 46 defendants, including physicians, pharmacists, and nurses, with the illicit distribution of pharmaceuticals in the Central Arkansas area. In total, Operation Pilluted in the Eastern District of Arkansas has led to six federal Indictments charging 113 defendants, including five doctors.
"Prescription drug abuse is an extremely serious problem, not just in Arkansas, but nationwide," Shepard said. "DEA and our law enforcement partners will continue to investigate professionals in the medical field who operate as drug peddlers. Those persons who disregard their ethical and legal obligations while dispensing pharmaceuticals will be forced to bear the consequences of their actions."
The case against Dr. Johns was investigated by the DEA—Little Rock Diversion Squad, along with the Federal Bureau of Investigation, Arkansas State Police, Central Arkansas Drug Task Force, Lonoke County Sheriff’s Office, White County Sheriff’s Office, and Little Rock Tactical Diversion Squad composed of officers from the Conway Police Department, Beebe Police Department, Little Rock Police Department, Pine Bluff Police Department, Jefferson County Sheriff’s Office, and the Benton Police. Also involved in the investigation were the United States Marshals Service, Little Rock Police Department, and the Saline County Sheriff’s Office.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
Defendants, United States v. Richard Duane Johns, et al.:
Conspiracy to Distribute Schedule II controlled substances
RICHARD DUANE JOHNS, 49, Little Rock
DAVID LARUE SCROGGINS, 56, Cabot
MARISSA DONANN SCROGGINS, 29, Cabot
CHRISTOPHER DAVID SCROGGINS, 36, Cabot
DONNA MICHELLE CEARNS, 28 Cabot
VANESSA E. BYRD, 29, Ward
RANDY JAMES BYRD, 28, Ward
JAMES JASON WASHAM, 38, Scott
JERRI D. WASHAM, 33, Scott
CHRISTINE MARIE ZEMAN, 46, Lonoke
MEGAN BROOKE MCCONNELL, 25, Judsonia
GREGORY CHASE MCCONNELL, 24, Judsonia
ARON SCOT COCHRAN, 26, Searcy
SCOTTY WAYNE FERREN, JR., 25, Searcy
JASON RAY BEAUDRY, 29, Searcy
DUSTIN R. BULLOCK, 27, Searcy
CHARLES LESTER MASON, 69, Searcy
JOSHUA DAVID RINGER, 29, Searcy
JAMES VERNON SPIKER, JR., 28, Judsonia
STATUTORY SENTENCES
Conspiracy to Possess with Intent to Distribute Oxycodone, a Schedule II controlled substance, is punishable by not more than 20 years’ incarceration in the Bureau of Prisons with a possible fine of up to $1,000,000, and not less than 3 years supervised release.
Possession with Intent to Distribute and Distribution of Oxycodone, a Schedule II controlled substance, is punishable by not more than 20 years’ incarceration in the Bureau of Prisons with a possible fine of up to $1,000,000, and not less than 3 years supervised release.
United States Settles Mineral Trespass Claims Against SWN Production (Arkansas), LLC F/K/A Seeco, Inc.Read the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas announced today that SWN Production (Arkansas), LLC f/k/a SEECO, Inc., of Texas (collectively "SEECO") has agreed to pay the United States $950,000 to resolve civil claims against SEECO related to mineral trespass. According to the executed agreement, SEECO must remit full payment within 45 days.
The Southeastern States Field Office of the Bureau of Land Management (BLM) routinely reviews data regarding existing natural gas wells to assess whether the wells are impacting federally owned minerals. In July 2009, BLM developed information indicating a natural gas well operated by SEECO drilled into unleased federally owned minerals located in Conway and Van Buren Counties, Arkansas.
A joint investigation by the United States Department of the Interior Office of the Inspector General and the BLM Special Investigations Group confirmed that SEECO spud (began drilling) the Salinas, Reyes 09-15 #2-20H ("Salinas") well on January 4, 2008, in Conway County, and began production on April 8, 2008. Accordingly, from January 4, 2008, to December 3, 2009, the United States contends that SEECO trespassed into federal minerals for the purpose of obtaining minerals for private gain from the Salinas well. Furthermore, SEECO spud the Griggs 11-15 1-26H ("Griggs") well on November 3, 2009, in Van Buren County, and production began on the Griggs well February 6, 2010. The United States contends that from November 3, 2009, to April 21, 2010, SEECO trespassed into federal minerals for the purpose of obtaining minerals for private gain from the Griggs well.
SEECO produced and sold federally owned natural gas from the wells valued at $950,000. SECCO has fully cooperated with the United States in its civil investigation of this incident.
"This office is committed to protecting and preserving the sanctity of the United States’ natural resources and deterring future violations," Thyer said.
"This civil settlement should remind the oil and gas industry that the Department of the Interior is monitoring federally owned mineral interests, and that the Department of Justice will hold companies responsible if they trespass," Matthew Elliott, Assistant Inspector General for Investigations, Office of Inspector General, U.S. Department of the Interior, said. "I would also like to thank BLM’s Special Investigations Group for referring this matter to us and assisting in our investigation, and Assistant United States Attorney Shannon Smith for her dedicated work to bring this matter to fruition."
The investigation was led by Special Agent, Richard Larrabee, United States Department of the Interior Office of Inspector General, Energy Investigations Unit. Assistant United States Attorney Shannon S. Smith handled the matter for the United States.
Former Arkansas State Treasurer Martha Shoffner Sentenced to 30 Months in Prison for Extortion and BriberyRead the Press Release
Little Rock—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and David Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), announced today that former Arkansas State Treasurer Martha Ann Shoffner, 71, of Newport, was sentenced to 30 months incarceration in the Bureau of Prisons following her conviction on six counts of extortion under color of official right, one count of attempted extortion under color of official right, and seven counts of receipt of a bribe by an agent of a state government receiving federal funds.
In addition to the term of imprisonment, as part of that sentence handed down Friday by United States District Judge J. Leon Holmes, Shoffner was ordered to pay $31,980 in restitution to the State of Arkansas and a $100 special assessment on each count, for a total assessment of $1,400. The $4,020 in bribe money seized at the time of her arrest was forfeited. Shoffner’s prison term will be followed by two years of supervised release.
"When a public official abuses his or her office and is personally enriched, the trust given by the citizens of Arkansas is violated," Thyer said. "We are satisfied that the Court carefully weighed all appropriate factors in determining the sentence in this case."
"Public corruption betrays the trust that is necessary for our democracy," Resch stated. "The FBI will continue to work with the United States Attorney’s Office to ensure those that participate in public corruption will be held accountable for their actions."
Martha Shoffner was elected as Treasurer for the State of Arkansas in 2006 and 2010. The United States presented testimony that historically, the Treasurer’s Office had used between 8 and 12 bond brokers throughout the state to purchase federal agency bonds for investment. During Shoffner’s first term in office, the bond inventory levels between the brokers was relatively comparable. In mid-2010, Shoffner and Steele Stephens, a broker with St. Bernard Financial, began an arrangement where Stephens made $6,000 payments to Shoffner every six months.
In mid-2010, Stephens made the first $6,000 payment to Shoffner at the State Capitol, resulting in Stephens’ bond inventory increasing above that of other brokers for the State of Arkansas, ultimately reaching over $600 million in bond inventory in August 2012. In total, Stephens received approximately $2 billion in bond business, earning approximately $1,714,889.35 in commissions. Stephens made a total of six payments of $6,000 to Shoffner from mid-2010 through December 2012. Two payments were made at the Capitol, two payments were made at Shoffner’s Little Rock residence, and two payments were made at Shoffner’s home in Newport, Arkansas. Stephens concealed the $6,000 payments in a pie box when he delivered money to Shoffner in Newport.
In January 2013, Stephens began cooperating with the FBI. As part of his cooperation, he recorded a meeting with Shoffner at her home in Newport. In May 2013, Stephens delivered a pie to Shoffner with $6,000 in FBI funds in the pie box. After the broker left Shoffner’s house, Special Agents with the FBI executed a search warrant at the house. Shoffner had taken the cash out of the pie box and placed it in a cigarette box in a kitchen drawer. She also told the FBI that she still had $4,020 from the December 2012 payment hidden in a cigarette box.
Shoffner also received contributions for her November 2010 re-election campaign for Treasurer which she deposited in her campaign account. She had a personal credit card which she used to pay for personal expenses. Shoffner used contributors’ campaign funds to pay for her personal items on her credit card. Ten payments were made to pay her personal credit card between November 5, 2010, and October 9, 2011, ranging in amounts from $200 to $5,000. Shoffner concealed the expenditure of her campaign funds for her personal use.
The charges stemmed from an investigation by the FBI’s ArkTrust Public Corruption Task Force. The ArkTrust Public Corruption Task Force is comprised of FBI Agents, and Task Force Officers from the Arkansas State Police Department, Pulaski County Sheriff’s Office, and the Little Rock Police Department. If you think you see public corruption contact the public corruption hotline at (501) 221-8200.
Former Seacy Police Chief Pleads Guilty to Possession of HydrocodoneRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Grover Crossland, Resident Agent in Charge for the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), announced today that former Searcy Police Chief Jeremy Clark pled guilty to an Information charging him with a violation of federal controlled substance law.
Clark, 36, of Searcy, pled guilty to a one-count misdemeanor Information charging him with possession of Hydrocodone, a controlled substance, in violation of Title 21, United States Code, Section 844(a). The case number is 4:15-cr-0214 DPM. Clark pled guilty and was sentenced Monday before United States Magistrate Judge Joe J. Volpe.
According to the facts stated in open court, Clark admitted that in August 2014 he obtained a quantity of Hydrocodone from at least one other person who was not authorized to distribute a controlled substance. Judge Volpe then sentenced Clark to one year of probation, to include drug counseling and random drug tests, and a $1,000 fine.
On March 3, 2015, law enforcement agents executed a search warrant on Clark’s home. That afternoon, Clark resigned as Searcy Police Chief. As part of the plea agreement, Clark agreed to surrender his law enforcement certification to the Arkansas Commission on Law Enforcement Standards and Training and subsequently not apply for, request, receive, or maintain any law enforcement certification or commission. In addition, Clark agreed that he will neither seek nor accept employment as a law enforcement officer with any Federal, state or local agency; to include paid, part-time, elected, or volunteer appointments.
This investigation was conducted by the ATF and prosecuted by Assistant United States Attorney Chris Givens.
Indictment Charges Six Defendants in Connection with 86 Stolen GunsRead the Press Release
LITTLE ROCK - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas and Grover Crossland, Resident Agent in Charge for the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), announced today the unsealing of a two-count Indictment charging multiple defendants with the possession of firearms stolen from the Hunter’s Refuge sporting goods store in White Hall, Arkansas. An investigation into a series of burglaries at the shop resulted Thursday in the early-morning arrests of five defendants by the ATF along with the assistance of the Pine Bluff and White Hall police departments. Another defendant named in the Indictment remains in state custody on unrelated charges.
On Friday, August 21, 2015, at 2 p.m., five defendants will be arraigned by United States Magistrate Judge Joe J. Volpe. The remaining defendant will be arraigned on August 27, 2015. The case number is 4:15-cr-204-JM.
The ATF investigation revealed that a group of individuals forced entry into Hunter’s Refuge on December, 18, 2014, broke into a number of locked glass display cases, and stole 24 handguns. On January 8, 2015, a group of individuals again forced entry into Hunter’s Refuge and stole 62 more guns, including eight assault rifles. A number of the stolen guns have since been recovered.
The Indictment, returned by a Federal Grand Jury on August 5th, 2015, charges six defendants with two separate counts of possession of stolen firearms. Count One charges Sir Arthur Carrington-Fields, 19, with possession of one or more of the 24 firearms stolen from Hunter’s Refuge on December 18, 2015. Count Two charges Jakheeno Stewart, 19; Charles Moore Jr., 19; Rodderick Goins, 19; Raheem Wise, 19; Martel Donaldson, 19; and Carrington-Fields with possession of one or more of the 62 firearms stolen from Hunter’s Refuge on January 8, 2015. All defendants are residents of Pine Bluff, Arkansas. Possession of a stolen firearm is punishable by no more than 10 years of incarceration in the Bureau of Prisons, with a possible fine of up to $250,000, and not more than 3 years supervised release.
The investigation was conducted by the ATF, with assistance from several law enforcement agencies including the Pine Bluff Police Department and White Hall Police Department. The case is being prosecuted by Assistant United States Attorney Hunter Bridges.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
Sixth Person Indicted for Role in Federal Feeding Program FraudRead the Press Release
LITTLE ROCK— Another feeding program sponsor has been indicted for his role in a scheme to steal federal money. Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that Reuben Nims, age 51, of Little Rock, has been arrested after the filing of a 10-count indictment.
The indictment, returned by a Federal Grand Jury on August 5, 2015, charges Nims with mail fraud as part of a scheme to fraudulently obtain United States Department of Agriculture (USDA) program funds. Following his arrest Tuesday Nims was arraigned and released on bond by Judge Joe J. Volpe.
The USDA funds the Child and Adult Care Feeding Program, which includes an at-risk afterschool component. In Arkansas, the feeding programs are administered by the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. Once approved, they can provide meals as part of the feeding program and be reimbursed based on the number of eligible meals they serve.
The indictment states that Nims operated as a sponsor for a feeding program through an organization called Blessed Thru Success. It alleges that a relative of Nims worked for DHS and processed applications from sponsors applying to participate in the feeding programs.
The indictment alleges that Nims applied with DHS to participate as a sponsor and that his relative at DHS approved his applications. The indictment states that he falsely represented his average daily attendance and the number of meals provided; no children were actually fed. In this way, Nims stole over $182,000 of federal funds, according to the indictment.
"With reportedly over 200,000 children at risk of hunger in Arkansas because they are not getting nutritious food, this indictment is a small step toward ensuring the funding for nutritious feeding programs in Arkansas is actually feeding children," Thyer said. "This is the third indictment and sixth person charged in connection to feeding programs in Arkansas. In December 2014, my office indicted three individuals for their roles in a conspiracy to steal federal money through feeding programs administered by the Department of Agriculture. I expect that as the investigation into Arkansas’ feeding programs continue, there will be additional indictments. We will not tolerate the blatant disregard of the welfare of Arkansas’ children by those who steal the very money meant to alleviate the burgeoning need to put nutritious food in the mouths of hungry children. If you are aware of any fraudulent activity regarding these feeding programs, please email that information to my office at [email protected]."
The statutory penalty for mail fraud is not more than 20 years imprisonment, not more than a $250,000 fine, or both, and not more than 3 years supervised release.
The investigation is ongoing and is conducted by the United States Secret Service, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigations, United States Department of Agriculture – Office of the Inspector General, and United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Jana Harris and Allison W. Bragg.
An indictment contains only allegations. Defendants are presumed innocent until proven guilty.
Seventy Defendants Facing Multiple Drug and Gun Charges in 40 Separate Indictments Following Major Investigation in Mississippi CountyRead the Press Release
BLYTHEVILLE, Ark.—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), and Scott Ellington, Prosecuting Attorney for the Second Judicial District of Arkansas, announced today the simultaneous unsealing of 40 federal indictments charging 70 defendants in a major operation aimed at curbing drug trafficking and gun violence in Blytheville and Mississippi County. The indictments were returned by the Grand Jury on August 5, 2015, and were unsealed today following a coordinated roundup of the charged defendants.
The Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, named Blynd Justus, began in 2013, with a goal to target steadily increasing drug and gun crime in Mississippi County. Early Tuesday morning 574 law enforcement officers, including more than 300 tactical officers, helped execute the arrest warrants in a targeted takedown that resulted in the arrests of 50 defendants on various federal firearm and drug charges, including eleven defendants who were already in state custody. Twenty defendants are now fugitives. Most of the defendants are residents of Blytheville (see attachment for complete list of defendants and charges).
"When I was confirmed as U.S. Attorney for the Eastern District of Arkansas five years ago I made a commitment to help clean up the Arkansas Delta," Thyer said. "It has been evident for some time that drugs and guns are overrunning the entire Arkansas Delta in general, and Mississippi County in particular. Today’s operation is a signal to those criminals that the law enforcement community at all levels will find you and stop you. Our collective goal is to return these communities to their law-abiding citizens. And while the 40 indictments announced today are a huge step toward this goal, our commitment to helping our friends in this part of the state will continue long after today."
From January 2014 through June 2015, agents with the FBI and Second Judicial District Drug Task Force coordinated more than 160 controlled purchases of drugs and/or firearms, resulting in the acquisition of more than 19 pounds of methamphetamine and 89 illegally possessed firearms, several of which were stolen. Also, more than 10 ounces of crack cocaine was purchased in the investigation. A majority of the 70 defendants are convicted felons.
"The arrests that were carried out today show our unwavering determination to disrupt violent gang activity and dismantle illegal sales of firearms and drugs in our state," Resch said. "Today’s operation, which includes 40 indictments and 70 defendants, combined with the 72 arrests during Delta Blues and the 24 arrests during Delta Crossroads represent the significant commitment of the FBI and the USAO to target violent criminals in eastern Arkansas. We appreciate the concentrated efforts made by our partners, USAO, ATF, U.S. Marshals, DEA, IRS, 2nd Judicial DTF, Arkansas State Police, Arkansas National Guard Counter Drug Unit, Mississippi County Sheriff’s Office, the Blytheville and Osceola Police Departments, and the SE Missouri Drug Task Force."
"On behalf of our local law enforcement agencies and the cities of Blytheville and Osceola, I want to thank U.S. Attorney Chris Thyer and FBI Special Agent In Charge David Resch for their commitment to help the good people of Mississippi County take back our community from those destroying it with crime and violence," prosecuting attorney Ellington said. "Lieutenant Bobby Ephlin, Lieutenant Roy Coleman, Deputy Prosecutor Corey Seats and all the officers of the Second Judicial District Drug Task Force worked hard in conjunction with FBI Special Agent Ed Jernigan to make this operation successful. Sheriff Dale Cook, Chief Ross Thompson and Chief David Gladden deserve thanks for their continued support of the Task Force.
"Our community is worth fighting for, and I believe in Blytheville and Osceola. Cleaning up this community begins with holding people accountable for their actions. Today, with the help of the FBI and the Arkansas State Police, we took a big step toward taking back our community from the thugs and criminals who choose to sell drugs and guns, rather than contribute to it in a positive manner."
This is the third major operation centered in Mississippi County that the United States Attorney’s office for the Eastern District has been involved in since 2013, and the largest. In March 2013, the Grand Jury returned seven indictments naming 19 defendants, and in January 2014, the Grand Jury returned an indictment naming 25 defendants. Delta Blues was an operation centered in Helena-West Helena, and Delta Crossroads was centered in West Memphis. All indictments included multiple drug charges.
"This type of investigation shows the great teamwork and commitment of the federal, state and local agencies, and the Arkansas State Police in combating drug and gun trafficking in the State of Arkansas," Arkansas State Police Colonel Bill Bryant said. "All of these agencies combined their assets and resources to disrupt and dismantle these drug trafficking organizations."
In addition to the arrest warrants served today, the IRS served two search warrants at properties owned by another individual not indicted, and a financial investigation continues.
"The role of IRS CI (Criminal Investigation) in narcotics investigations is to follow the money so we can financially disrupt and dismantle major drug trafficking organizations," said Christopher A. Henry, IRS Special Agent in Charge. "We are proud to work with our law enforcement partners by providing our financial investigative expertise. Today’s enforcement actions are an example of how the various law enforcement agencies in this district work together to stop the flow of illegal drugs into our communities."
The counts in today’s unsealed indictments include conspiracy to possess with intent to distribute methamphetamine, distribution of methamphetamine, possession with intent to distribute methamphetamine, distribution of crack cocaine and cocaine, use of a firearm in relation to a drug trafficking crime, felon in possession of a firearm, and use of a telephone to facilitate a drug trafficking crime. (See attached defendant/indictment list)
Those arrested today will be arraigned in federal court in Little Rock before United States Magistrate Judge Joe J. Volpe beginning at 10 a.m. on Thursday, August 13, 2015. Defendants already in custody will be arraigned on August 27, 2015, at 2 p.m.
The investigation was conducted by FBI, in partnership with the 2nd Judicial District Drug Task Force, which includes officers from the Blytheville Police Department, the Osceola Police Department and the Mississippi County Sheriff’s Office. Agencies assisting in today’s arrest operation include the Arkansas State Police, the Drug Enforcement Administration (DEA), the Arkansas National Guard Counter Drug Unit, the Southeast Missouri Drug Task Force (SEMO DTF), and the Internal Revenue Service-Criminal Investigations. The 40 indictments are being prosecuted by a team of multiple Assistant United States Attorneys, headed by Chris Givens and Kristin Bryant.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
(Blynd Justus Defendant List)