Eastern District of Arkansas
Press releases recorded for this federal judicial district.
Former Little Rock Attorney Sentenced to 60 Months in Prison for Mail Fraud and Tax EvasionRead the Press Release
Little Rock – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; Christopher A. Henry, Special Agent in Charge of the IRS-Criminal Investigation Nashville Field Office; and David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI) announced today that United States District Judge Brian S. Miller sentenced former Little Rock lawyer David Patrick Henry, Sr., 71, to 60 months in prison to be followed by two years of supervised release. He was also ordered to pay restitution of $1,021,133.74. $862,086.74 of the restitution is to be paid to the Joe Thomas Swaffar Irrevocable Insurance Trust and $159,047.00 is to be paid to the Internal Revenue Service. An agreement was reached to pursue the forfeiture of his property through civil action.
“This case illustrates that our office will prosecute those who steal the financial security of others, no matter their profession or standing in the community,” stated Thyer. “Mr. Henry used his profession as an attorney to hide his thievery from a family who trusted him. Although, elaborate, he ultimately could not hide his scheme from the trust beneficiaries. Now, his future is 60 months in federal prison and a requirement to pay back the money he stole from this family and the money he owed the IRS.”
“Honest and law abiding citizens are fed up with the likes of those who use deceit and fraud to line their pockets with other people’s money as well as skirt their tax obligations,” said Christopher A. Henry, IRS Criminal Investigation, Special Agent in Charge, Nashville Field Office. “Mr. Henry's actions not only caused negative ramifications to those financially connected to him, but also the honest taxpayer when he committed significant tax fraud violations as detailed in the indictment. Tax crimes have erroneously been referred to as victimless, but that position could not be more wrong since we all end up paying when someone attempts to evade our tax system.”
“David Henry is a criminal who stole from a widow and her children. We appreciate our partnership with the United States Attorney’s Office and the IRS Criminal Investigation Division as we worked together to bring him to justice,” said FBI SAC Resch.
On March 21, 2014, a federal jury found David Patrick Henry, Sr. guilty of 25 counts of mail fraud and three counts of tax evasion. The jury also found that his home located at lot 38, Pleasant Valley Estates in Little Rock, Arkansas was subject to forfeiture. According to court records, in March 2002, the Joe Thomas Swaffar Irrevocable Insurance Trust was set up naming Henry, Sr. as Trustee. The Trust was to be funded entirely with the proceeds of insurance policies totaling approximately $1,641,614.12 at the time of the death of Joe Thomas Swaffar. The beneficiaries of the Trust were Swaffar's family members, including his wife and daughter. As Trustee, Henry, Sr. devised, executed and participated in a scheme to defraud the beneficiaries of the Trust by means of false and fraudulent pretenses and representations depriving them of money and the right to control disposition of their money. It was part of the scheme to defraud that Henry, Sr. set up various bank accounts to which only he had access and in which he deposited funds from the proceeds of the Swaffar life insurance policies. Of these accounts, none of the bank statements were mailed to or could be accessed by the Trust beneficiaries. Therefore, the beneficiaries did not know how much money was received from the proceeds of the life insurance policies. The only person authorized to write checks from these accounts was Henry, Sr. Because the Trust beneficiaries did not receive those bank statements, they did not know that Henry, Sr. was writing checks for his benefit and the benefit of his family, including paying for Henry, Sr.’s personal health insurance, personal electric bills, cable television bills, personal mortgage notes for both of his sons, and the purchase of a vehicle for one of Henry, Sr.'s sons, among other things. Henry, Sr. claimed to have paid himself a salary of $2,000 per month for services allegedly performed as Trustee. However, the Trust document does not provide for a salary for the Trustee. Henry, Sr. performed no financial accounting and the Trust beneficiaries were not advised nor did they agree to the salary Henry, Sr. claimed to have paid himself.
In addition, Henry filed joint federal income tax returns with his spouse for calendar years 2005, 2006, and 2007 that failed to report all his taxable income and tax due and owing. For 2005, Henry reported that his taxable income was $0 and tax due and owing was $0, when he knew his actual taxable income for that year was $400,063, resulting in tax due and owing of $114,085. For 2006, Henry reported taxable income of $1,037 when he actually had $55,871 in taxable income for that year, resulting in $7,626 in tax due and owing. Henry filed his 2007 return reflecting taxable income of $1,199, when he knew his actual taxable income was $81,211 for that calendar year, resulting in $13,154 in tax due and owing.
This investigation was conducted by IRS Criminal Investigation and the Little Rock Field Office of the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Angela Jegley.
North Little Rock Woman Guilty of Wire FraudRead the Press Release
Pocketed over $900,000 in Payroll SchemeLittle Rock – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that Regina Paff, 53, of North Little Rock, Arkansas, pled guilty to an Information charging her with one count of wire fraud in a hearing held before U.S. District Judge James M. Moody, Jr. The charges relate to a scheme to defraud her former employer, AGL Corporation.
Paff was employed by AGL Corporation in Jacksonville, Arkansas, and as part of her duties, she prepared their payroll. She devised a scheme to take money from the company by paying herself additional paychecks, issuing herself reimbursement checks to which she was not entitled, and paying herself commission checks. To do this, she created false payroll entries. Through her scheme, between October 2008 and September 2012, Paff received approximately $991,640.32 in money she was not entitled to and caused a total intended loss to the company of $1,166,157.55.
At the conclusion of her hearing, Paff was taken into federal custody. A sentencing hearing will be set by the court at a later date. Paff faces a maximum penalty of 20 years in prison and a fine of up to $250,000.00.
This investigation was conducted by Federal Bureau of Investigation. Assistant United States Attorney Jana Harris is representing the United States.
Forest Place Apartments' Arsonist Pleads Guilty, Agrees to Pay $12.5 in RestitutionRead the Press Release
Little Rock – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that Lacey Rae Moore pleaded guilty to starting the fire that resulted in the complete destruction of the North Building of the Forest Place Apartments on University Avenue in Little Rock. Moore entered her guilty pleas to two counts of arson before United States District Judge J. Leon Holmes.
“There is no way to restore what people lost in the fires set by Lacey Moore at Forest Place Apartments,” stated Thyer. “There is, however, some consolation in this plea today that Ms. Moore is being held responsible for the millions of dollars’ worth of damage to the destroyed buildings, the injuries to the two valiant firefighters and the displacement of residents as a result of the fires she started. I, again, want to commend the agents from the Bureau of Alcohol, Tobacco, and Firearms, and all the members of the Little Rock Fire Department, Arkansas State Police and Little Rock Police Department for heroic efforts at saving lives and their investigative work on a puzzling string of fires. Ms. Moore has been stopped from setting additional fires and will have to pay for the damage she inflicted on so many innocent people in Little Rock.”
In February, Moore was indicted on seven counts of arson following an investigation into seven separate fires that broke out at Forest Place Apartments between February and June of 2013. An eighth count charged her with setting off an unregistered incendiary device at a private residence. The two counts to which Moore pleaded, Counts 4 and 7, stem from the two largest fires at Forest Place in 2013.
Moore pleaded guilty to starting the fire on May 16 (Count 4) that destroyed the North Building, resulting in the evacuation of more than 300 residents, permanently displacing 79 residents, leading to injuries to Little Rock firefighters and caused millions of dollars in damage. Moore also pleaded guilty to starting the fire in the South Building on June 28 (Count 7) that forced another 100 residents to be evacuated. As part of a plea deal, the remaining counts will be dismissed, although Moore said in the hearing today that she set all the fires and she accepts responsibility for paying the restitution owed for all seven Forest Place fires. To date, the amount of known restitution is more than $12.5 million.
Moore faces a statutory sentencing range for starting the May 16, 2013, fire of at least 7 to 40 years imprisonment, and for the June 28, 2013, fire, of at least 5 to 20 years imprisonment. As part of the plea agreement, the United States and Moore agreed to recommend to the sentencing judge, United States District Judge Billy Roy Wilson, that the sentences run consecutively, for a minimum sentence of 12 years.
The investigation was conducted by the ATF, with substantial assistance from the Little Rock Fire Department, the Arkansas State Police and the Little Rock Police Department. The case is being prosecuted by Assistant United States Attorney Chris Givens.
Former Heber Springs Gymnastics Studio Owner Pleads Guilty to Child Pornography ChargeRead the Press Release
Little Rock – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, along with Special Agent in Charge Raymond R. Parmer, Jr., of the New Orleans Field Office for Homeland Security Investigations, announced today that Matthew Tinkle, age 27, of Heber Springs, Arkansas, entered a plea of guilty to receipt of child pornography.
“This case illustrates the necessity of keeping lines of communication open and active with your children,” stated Thyer. “We place our children in the care of others with the intent that their lives are safe and their innocence protected. The vast majority of the time, that is the case. When it is not, it is often a parent who discovers the violation. Thankfully, law enforcement was contacted and the end result is that this child predator will be serving federal time as well as state time. We take the safety and security of our children seriously. Together, we will work to ensure that those who seek to prey on our children are not given the opportunity to abuse our sons and daughters.”
“Child predators who use a position of trust in order to groom and abuse their victims are truly the worst of the worst,” said Raymond R. Parmer Jr., Special Agent in Charge of ICE Homeland Security Investigations (HSI) in New Orleans. “The victims of heartless degenerates like this defendant are exploited through their faith, trust and innocence: values we hold dear in our children that can be damaged beyond repair by the perversions these monsters subject them to. This case serves as an unfortunate reminder to parents that child predators are often hidden in plain sight, seeking access to their victims by any means available.”
The indictment charged Tinkle with two counts of receipt of child pornography and one count of possession of child pornography. Pursuant to the plea agreement, Tinkle pled guilty to Count One of the Indictment which charged receipt of child pornography. In exchange for his guilty plea, the United States dismissed the remaining counts in the Indictment. Stipulations in the plea agreement included enhancements for use of a computer, for abuse of a position of trust, and for engaging in a pattern of activity involving the sexual abuse or exploitation of a minor. Tinkle will be required to register as a sex offender.
The charges in the Indictment were based on an investigation that began on December 20, 2012, when the Heber Springs Police Department was called to a residence in Heber Springs, concerning a 13 year old minor that had been molested. The investigation revealed that Tinkle, who was 25 at the time, had molested the minor on at least two occasions.
At all times relevant to the investigation, Tinkle was the owner of Tink’s Tumblers, a gymnastics studio in Heber Springs. The minor met Tinkle after attending "open gym" at Tinkle's gymnastics studio. The minor said that she and other kids would hang out with Tinkle at the gym and, on occasion, Tinkle would also give the minor and other kids rides to and from home.
During the investigation, the minor stated that she told Tinkle on multiple occasions that she was 13 years old. The minor also revealed that Tinkle did not charge her for using the gymnastics studio. The minor then informed Investigators that she had sent nude photographs of herself to Tinkle via text message.
An iPhone seized from Tinkle revealed images of the minor that met the federal definition of child pornography. The minor also stated that Tinkle sent her photographs of himself nude.
On February 27, 2014, Tinkle pled no contest in the Circuit Court of Cleburne County, Arkansas, to Rape. In exchange for his plea, the prosecuting attorney agreed to recommend that the court sentence Tinkle to a term of incarceration for a period of 120 months.
Tinkle faces not less than five years imprisonment to not more than 20 years imprisonment, five years to life of supervised release, and up to a $250,000 fine. The actual sentence will be decided by the Court at a later date.
The investigation was conducted by the Little Rock Office of Homeland Security Investigations Heber Springs Police Department, and the Arkansas State Police Crimes Against Children Division.
This case was prosecuted by Assistant United States Attorney Kristin Bryant.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, including resources for parents, please visit www.projectsafechildhood.gov.
Two Sons of Woman Linked to Mexican Drug Cartel Plead Guilty to Federal Drug ConspiracyRead 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) announced that two men with ties to the Gulf Cartel have pleaded guilty for their roles in a conspiracy to transport cocaine from Mexico to Little Rock for distribution in the Central Arkansas area. Mohammed Kazam Martinez, a/k/a “Mo,” pleaded guilty earlier today before the Honorable Susan Webber Wright to conspiring to possess with intent to distribute 5 kilograms or more of cocaine hydrochloride. Martinez’s brother, Homar Martinez, was indicted in the same case - along with sixteen (16) other defendants - and pleaded guilty to the same charge on Monday, July 28, 2014, in the Southern District of Texas (SDTX), where he is being held by the United States Marshal Service in Brownsville, Texas, on a separate federal drug case. As a result of their pleas, both men face a sentence of not less than 10 years to life imprisonment.
Mohammed and Homar Martinez are the sons of Idalia Ramos Rangel, a/k/a La Tia or Big Momma, a known close associate of high-ranking members of the Gulf Cartel, who directs a drug trafficking organization based in Matamoros, Mexico. That organization is responsible for the distribution of multiple hundreds of kilograms of cocaine in the United States. According to the indictment, Mohammed Martinez was a federal inmate in the Bureau of Prisons when he recruited inmates in the Federal Correctional Complex at Forrest City, Arkansas, to distribute Rangel’s Gulf Cartel cocaine upon their release from prison. Mohammed Martinez communicated with members of the drug trafficking organization using the prison telephone and e-mail systems to coordinate the distribution of cocaine to, and the collection of drug proceeds from, former federal inmates and others, including Homar Martinez and other members of Rangel’s family.
The investigation was conducted by the FBI, with substantial assistance from the Federal Bureau of Prisons and the Little Rock Police Department. The case is being prosecuted by Assistant United States Attorneys Michael Gordon and Chris Givens.
Former Arkansas State Police Lieutenant Pleads Guilty to Drug ConspiracyRead 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), and Colonel Stan Witt, Director of the Arkansas State Police (ASP), announced today that former Arkansas State Police Lieutenant Sedrick L. Reed, age 44, entered a plea of guilty to conspiracy to distribute and to possess with intent to distribute a controlled substance in the August 7, 2013 indictment in United States v. Sedrick L. Reed. The charge stemmed from an investigation by the Federal Bureau of Investigation’s ArkTrust Public Corruption Task Force with the full cooperation of the Arkansas State Police. The investigation was also referred to as Organized Crime and Drug Enforcement Task Force (OCDETF) operation “Diverted Justice.”
“Today, Sedrick L. Reed, a former Arkansas State Police lieutenant, admitted his guilt to a cocaine distribution conspiracy. An investigation of this nature is challenging to conduct. I commend the FBI and the Arkansas State Police for their diligence and cooperation to fully investigate this case even though it was another law enforcement official,” stated Thyer. “Citizens of the Eastern District of Arkansas deserve to know that their law enforcement members are trustworthy law abiding citizens and when they are not, they will be held accountable for their illegal actions.
Reed pleaded guilty to participating in a conspiracy to distribute and to possess with intent to distribute controlled substances. The United States dismissed the remaining four counts against the defendant upon acceptance of the guilty plea. Reed faces a potential sentence of not less than 10 years and up to life imprisonment; not less than 5 years and up to life supervised release; up to a $10 million fine, and a $100 special assessment. Reed also agreed to the forfeiture of bank accounts, real property, firearms, vehicles, and more than $30,000 in cash constituting proceeds of his illegal conduct.
At his plea hearing before U.S. District Court Judge Billy Roy Wilson in open court, Reed admitted to participating in a conspiracy to distribute between five and fifteen kilograms of cocaine between 2006 and 2013. Reed admitted that he abused a position of public trust in a manner that significantly facilitated the conspiracy. Reed also admitted to possessing a firearm during the conspiracy. Reed admitted to diverting drugs from a traffic stop and taking drugs from the ASP evidence locker. Reed further admitted that during the course of the conspiracy, Reed profited in excess of $200,000 from the resale of these stolen drugs.
The investigation was conducted by the FBI’s ArkTrust Public Corruption Task Force. It is being prosecuted by Assistant United States Attorneys Julie Peters and Chris Givens.
The remaining defendant in the indictment, Lamont Johnson, is set for trial before Judge Wilson on October 7, 2014.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
Former Arkansas State Police Lieutenant Pleads Guilty to Drug ConspiracyRead 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), and Colonel Stan Witt, Director of the Arkansas State Police (ASP), announced today that former Arkansas State Police Lieutenant Sedrick L. Reed, age 44, entered a plea of guilty to conspiracy to distribute and to possess with intent to distribute a controlled substance in the August 7, 2013 indictment in United States v. Sedrick L. Reed. The charge stemmed from an investigation by the Federal Bureau of Investigation’s ArkTrust Public Corruption Task Force with the full cooperation of the Arkansas State Police. The investigation was also referred to as Organized Crime and Drug Enforcement Task Force (OCDETF) operation “Diverted Justice.”
“Today, Sedrick L. Reed, a former Arkansas State Police lieutenant, admitted his guilt to a cocaine distribution conspiracy. An investigation of this nature is challenging to conduct. I commend the FBI and the Arkansas State Police for their diligence and cooperation to fully investigate this case even though it was another law enforcement official,” stated Thyer. “Citizens of the Eastern District of Arkansas deserve to know that their law enforcement members are trustworthy law abiding citizens and when they are not, they will be held accountable for their illegal actions.
Reed pleaded guilty to participating in a conspiracy to distribute and to possess with intent to distribute controlled substances. The United States dismissed the remaining four counts against the defendant upon acceptance of the guilty plea. Reed faces a potential sentence of not less than 10 years and up to life imprisonment; not less than 5 years and up to life supervised release; up to a $10 million fine, and a $100 special assessment. Reed also agreed to the forfeiture of bank accounts, real property, firearms, vehicles, and more than $30,000 in cash constituting proceeds of his illegal conduct.
At his plea hearing before U.S. District Court Judge Billy Roy Wilson in open court, Reed admitted to participating in a conspiracy to distribute between five and fifteen kilograms of cocaine between 2006 and 2013. Reed admitted that he abused a position of public trust in a manner that significantly facilitated the conspiracy. Reed also admitted to possessing a firearm during the conspiracy. Reed admitted to diverting drugs from a traffic stop and taking drugs from the ASP evidence locker. Reed further admitted that during the course of the conspiracy, Reed profited in excess of $200,000 from the resale of these stolen drugs.
The investigation was conducted by the FBI’s ArkTrust Public Corruption Task Force. It is being prosecuted by Assistant United States Attorneys Julie Peters and Chris Givens.
The remaining defendant in the indictment, Lamont Johnson, is set for trial before Judge Wilson on October 7, 2014.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
Mount Ida Man Pleads Guilty to Money Laundering and Wire FraudRead the Press Release
Texarkana, AR – Conner Eldridge, United States Attorney for the Western District of Arkansas; 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; and Christopher A. Henry, Special Agent in Charge of the Nashville Field Office of the Internal Revenue Service, Criminal Investigation Division; announced today that Steven Alan Standridge, age 57, of Mount Ida, Arkansas entered pleas of guilty to money laundering and wire fraud counts related to indictments issued against him by federal grand juries in both the Western and Eastern Districts of Arkansas. Standridge pleaded guilty to one count of wire fraud from a 23-count indictment issued by a Grand Jury in the Western District of Arkansas on October 30, 2013. Pursuant to the terms of the plea agreements, Standridge pleaded guilty to one count of money laundering from a twelve-count A u g us t 8 , 20 12, Indictment by a Grand Jury in the Eastern District of Arkansas which was transferred to the Western District of Arkansas. . The plea took place before the Honorable Susan O. Hickey in United States District Court for the Western District of Arkansas in Texarkana.
Pursuant to both plea agreements, Standridge and the United States agreed that a sentence of imprisonment of 60 months, to run concurrent, followed by a term of supervised release as determined by the court, and victim restitution totaling $7,096,417.35, is the appropriate sentence to be imposed by the court. The parties further agreed that should Standridge pay at least 80% of the restitution owed before sentencing, the United States would not object to Standridge seeking a variance in sentence to 36 months. The United States will oppose any variance below 36 months. The plea agreements provide that if the court does not accept these sentencing terms, Standridge may withdraw his pleas.
The indictment issued in the Eastern District of Arkansas charged Standridge with one count of conspiring to commit bank fraud, four counts of aiding and abetting bank fraud, one count of bank fraud, five counts of money laundering, and one count of making a false statement to a financial institution. The indictment in the Western District of Arkansas charged Standridge with eight counts of wire fraud, one count of mail fraud, two counts of money laundering, six counts of bank fraud, and six counts of making a false statement to a financial institution.
U.S. Attorney Eldridge stated, “This case shows that we are focused on combating fraud throughout the state of Arkansas. This Defendant carried out various schemes to defraud Arkansas businesses and individuals. Such conduct takes advantage of legitimate hard-working people in our state. We will continue to work together to prosecute those who seek to steal or swindle money from others.”
“Standridge used his reputation and standing in the community to undermine the trust of hometown banks and destroyed the livelihood of a small business owner,” stated Thyer. Actions, such as those admitted to today by Standridge, have long-standing negative effects when friends and business associates resort to deception for personal gain. Hopefully, this plea today and the subsequent sentence to follow, will allow some measure of closure for those affected and they can move forward to rebuild their lives and businesses. I am grateful for the diligence of the many investigators, especially the investigators at the Arkansas Insurance Department, and the prosecutors in both the Eastern and Western Districts of Arkansas for their pursuit of justice for the citizens of Arkansas.”
“The FBI vigorously pursues those who commit sophisticated bank fraud and money laundering schemes that threatens the stability of banking institutions,” said David T. Resch, Special Agent in Charge of the FBI’s Little Rock Field Office, “This indictment demonstrates the collective determination of our federal and state partners in maintaining public trust and ensuring its continuation.”
“Honest and law abiding citizens are fed up with the likes of those who use deceit and fraud to line their pockets with other people’s money,” said Henry. “Those individuals who engage in this type of financial fraud should know they will not go undetected and will be held accountable. We are pleased with the successful resolution of this investigation due to the cooperative efforts of our law enforcement partners.”
“I commend all the parties involved for bringing this case to its rightful conclusion,” said Arkansas Insurance Commissioner Jay Bradford. “I am especially proud of our Criminal Investigation, Legal, and Liquidation Divisions for their perseverance and continued cooperation with the U.S. Attorney’s Office.”
The Eastern District Indictment against Standridge followed pleas of guilty to an Information by Danny Wood of Idabel, Oklahoma and Gregory A. Hunt of Russellville, Arkansas. On March 2, 2012, Wood pled guilty to aiding and abetting bank fraud. On July 6, 2012, Wood was sentenced to 30 months imprisonment. On June 6, 2012, Hunt pled guilty to aiding and abetting bank fraud. Hunt was sentenced on October 31, 2012 to 33 months imprisonment.
Throughout the time period set forth in both Indictments, Standridge owned, operated, and/or managed various independent insurance agencies in the State of Arkansas. Through those companies, Standridge provided various types of insurance policies and bonds to his customers including Danny Wood and Gregory A. Hunt.
The Indictment against Standridge filed in the Eastern District of Arkansas alleged that Standridge conspired with Wood and Hunt to commit bank fraud. The Indictment stated that as part of the conspiracy, Standridge arranged for Wood, Hunt, and their companies to obtain premium finance loans from banks located in the Eastern District of Arkansas. Premium finance loans are made to insureds to cover the cost of an insurance premium. The insurance policy purchased with the loan proceeds serves as the collateral for the loan. Standridge would either purchase the insurance policies that were collateral for those loans and then later cancel the policies or would never purchase the policies that were listed on the premium finance agreements. The proceeds of those loans were ultimately paid to Standridge and were used for purposes other than those set forth in the loan agreements.
The Indictment filed in the Western District of Arkansas alleged that Standridge who was president of Steve Standridge Insurance, Inc. (SSI) arranged for SSI to obtain loans from a corporation located in Hot Springs, Arkansas by falsely representing that SSI would use the loans to purchase two insurance agencies and that Standridge submitted false information to a bank in Hot Springs, Arkansas in an attempt to obtain a loan for SSI to purchase an insurance agency. The Indictment alleged that there were no agreements to purchase the insurance agencies as represented by Standridge and that he used the $2.7 million dollar loans obtained from the Hot Springs corporation for other purposes.
According to the plea agreement filed in the Western District of Arkansas, in January 2010 Standridge falsely represented to the president of the corporation Hot Springs that SSI was buying two insurance agencies and had obtained bank loans for these purchases. Standridge obtained $2.7 million from the corporation to purchase these insurance agencies with the promise that these loans would be repaid with the proceeds from the bank loans. The investigation revealed that SSI had no agreement to purchase these insurance agencies and that SSI had not arranged any bank loans to finance these fictitious purchases. In furtherance of his fraudulent scheme Standridge sent emails to the president of the corporation including an email sent on January 26, 2010, containing false and fraudulent income statements for one of the insurance agency which agency had never conducted business nor earned any income. Standridge plead guilty to count 3 of the Indictment charging him with wire fraud for sending this email.
The investigation was conducted by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation with the assistance of the Arkansas Insurance Department-Criminal Investigation Division. This case was prosecuted in the Eastern District of Arkansas by Assistant United States Attorneys Patricia S. Harris and Kristin Bryant, and in the Western District of Arkansas by Assistant United States Attorney Kenneth Elser.
Conway Business Owner Pleads Guilty to Structuring A Financial TransactionRead the Press Release
LITTLE ROCK, AR – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; Christopher A. Henry, Special Agent in Charge of the IRS-Criminal Investigation Nashville Field Office; announced that Patrice Duncan, age 59, of Conway, pled guilty May 5, 2014, before United States District Judge Jay Moody. Duncan pled guilty to one count of structuring a financial transaction, of more than $10,000 in cash to evade the reporting requirements banks have to report to the United States Treasury when there is a cash deposit of more than $10,000.
“Structuring financial transactions to avoid currency reporting requirements is a criminal violation of federal law under the Bank Secrecy Act (BSA). Deliberately avoiding BSA requirements is a form of money laundering that will be vigorously investigated by IRS Criminal Investigation.”
Patrice Duncan was indicted by a federal grand jury on September 5, 2012 on 21 counts of structuring financial transactions. She pled to Count 21 of the Indictment. The remaining counts against Duncan were dismissed. Patrice Duncan is one of the owners of Duncan Outdoor in Conway. In September and October 2011, an undercover (UC) agent of the IRS-Criminal Investigations went to Duncan Outdoor and purchased a motorcycle with cash. The undercover agent, who was wearing a recording device, discussed paying in cash so that the bank and government would not know of the transaction. Patrice Duncan was recorded discussing with the UC agent that she would not deposit all the money at one time so that the bank wouldn’t fill out the forms that document transactions over $10,000. On October 25, 2011, Duncan deposited $9,400 cash from the UC agent’s purchase. A few days later, on October 28, 2011, Patrice Duncan deposited the remaining $2,000 cash from the UC agent’s purchase.
Structuring has a statutory maximum of not more than five years in prison and/or not more than a $250,000 fine followed by not more than three years of supervised release.
A sentencing date will be set by the Court at a later date. Gary Duncan, Patrice Duncan’s husband, was also indicted on the structuring charges. His trial will be continued.
The maximum sentence for bank fraud is not more than 30 years imprisonment, not more than a $1,000,000 fine and/or not more than five years of supervised release.
The case was investigated by special agents from the IRS-Criminal Investigations. The case is being prosecuted by First Assistant United States Attorney Pat Harris.
USAF Captain Indicted on Child Pornography ChargesRead the Press Release
LITTLE ROCK, AR – Christopher R. Thyer, Attorney for the Eastern District of Arkansas announced that Shane Padilla, age 30, of Jacksonville, a Captain in the United States Air Force, was indicted by a federal grand jury Wednesday, May 7, 2014,on one count of distribution of child pornography and one count of possession of child pornography.
Padilla was arrested on a Criminal Complaint, Friday, April 4, 2014. After a bail hearing Tuesday, April 8, 2014, Padilla was released from custody on the condition that he surrenders his passport and his pilot’s license. The conditions also imposed home detention. He is not allowed internet access and is to have no contact with minors.
“Having to prosecute these types of cases is always difficult,” stated Thyer. “It is even more difficult when the indictment is against a member of our armed forces sworn to protect the United States. I am committed to, and consider it one of my highest duties as United States Attorney to prosecute to the full extent of the law those, no matter their position in society, who exploit the innocence of our children.”
According to the Criminal Complaint, this investigation began in May of 2013 as part of a larger investigation conducted by Homeland Security Investigation (HSI) agents in Savannah, Georgia. Subsequently, HSI in Little Rock was notified that Padilla, a Captain in the United States Air Force stationed at the Little Rock Air Force Base, had received child Pornography at his email account. A federal search warrant was issued and data regarding Padilla’s email account was provided by Yahoo, Inc. After review of the information, the Complaint alleges that numerous email messages between May 2013 and July 2013 were found to contain images and/or videos of minors engaged in sexually explicit acts.
The United States Air Force Office of Special Investigations (AFOSI) was contacted and a military agent was assigned to participate in the investigation. A U.S. Military search warrant was issued and several electronic devices were seized from Padilla. The devices were turned over to an HSI Computer Forensics Analyst after a federal search warrant was issued for the devices. According to the Complaint, the analyst determined that over 1,000 images and 100 videos depicting minors engaged in sexually explicit acts were found on the devices. An arrest warrant was issued and Padilla was arrested April, 4, 2013.
The Indictment alleges that on or about March 27, 2013, Padilla knowingly distributed child pornography. The second charge in the Indictment alleges that from February, 2013, through March 27, 2013, Padilla possessed child pornography.
If convicted, Padilla faces not less 5 years’ imprisonment with a maximum of 20 years’ imprisonment and/or up to a $250,000 fine followed by 5 years of supervised release for the Distribution of Child Pornography charge. The possible sentence for Possession of Child Pornography is not more than 20 years’ imprisonment and/or up to a $250,000 fine followed by 5 years of supervised release.
The investigation was conducted by Homeland Security Investigations with substantial assistance from the United States Air Force Office of Special Investigations. The case is being prosecuted by Assistant United States Attorney Kristin Bryant.
The charges set forth in an Indictment are allegations. The defendant is presumed innocent until proven guilty.
Pine Bluff Couple Sentenced for Theft of Government Property from the NCTRRead the Press Release
LITTLE ROCK - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that Lee Anne Branch and Kyle Branch, both 41 of White Hall, Arkansas appeared before United States District Judge D. P. Marshall, Jr. to be sentenced for theft of government property. Judge Marshall sentenced Lee Anne Branch to 30 months’ imprisonment to be followed by 3 years’ supervised release. Kyle Branch was sentenced to 20 months in prison followed by 3 years’ supervised release. Judge Marshall also ordered the Branches to pay $248,535 to the NCTR.
On November 21, 2013, the Branches waived indictment and pled to an Information charging them with one count of theft of government property. When entering their pleas, the Branches admitted that they voluntarily, intentionally and knowingly stole items of value that belonged to the United States with the intent to deprive the owner of the use or benefit of the items taken. At the time of their plea, they also agreed to forfeit all interests in all property that was used to commit their theft and any proceeds of their sale of government property including a 1998 Baja Outlaw Boat with a Mercruiser motor and SPRS Trailer. When pronouncing the sentence for the Branches, the Judge stated that he took into consideration Kyle’s medical condition, namely cancer. Judge Marshall recommended that Kyle be placed in a medical facility close to Central Arkansas. Lee Anne was ordered to report to the Bureau of Prisons June 9, 2014, and Kyle was given until September 30, 2014 to report.
The charge was the result of a scheme to steal property that was being transferred from the Pine Bluff Arsenal (PBA) as they were breaking down buildings and equipment associated with the chemical weapons destruction. Lee Anne Branch was employed at the National Center for Toxicological Research (NCTR). She was in charge of property and the process of obtaining property from other federal agencies. Lee Ann stole the transferred property, by personally picking up pallets of items from the PBA in a box truck. The truck would be driven to a private storage unit she rented in White Hall instead of taking them to the NCTR and entering them into the NCTR inventory. Kyle Branch then sold the stolen items from the storage unit through multiple means including sales on eBay and Craig’s List.
A third defendant, Travis Love Donald, age 38, of Sherwood, also pled guilty on November 21, 2013, to the theft of government property charged in the Information. He is scheduled to be sentenced by United States District Judge D.P. Marshall, Jr. on May 22, 2014.
The United States Attorney acknowledges the valuable assistance of the Little Rock Field Office of the Federal Bureau of Investigation, U.S. Army CID, NCTR, and the Jefferson County Sheriff’s Office for their dedication to this investigation. Assistant United States Attorney Edward Walker prosecuted this case for the United States.
Arrests Dismantle North Little Rock Cocaine RingRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, Michael A. Davis, Acting Assistant Special Agent in Charge of the Little Rock District Office of the Drug Enforcement Administration (DEA), and North Little Rock Police Department (NLRPD) Chief Mike Davis announced the arrests today of multiple individuals related to a federal indictment focused on cocaine and crack cocaine distribution in the North Little Rock, Little Rock, and Saline County areas. The organization at the center of the investigation is alleged to have been responsible for the distribution of hundreds of kilograms of cocaine during the time period of November 2011 through March 2014.
“My office will continue to dismantle these drug operations in our neighborhoods,” stated Thyer. “Getting the career criminals off the streets is one of the highest priorities in this office. We will prosecute these cases to the fullest extent of the law to take back our neighborhoods for the law abiding citizens.”
“This case started in January of 2013 after complaints were received of drug sales occurring in several locations in the area around 16th-18th Street West of Pike Avenue,” stated Chief Davis. “ Our narcotics division began working on the issue and were able to gather information and make several controlled drug sales of crack cocaine. Investigators reached out to the Drug Enforcement Administration who began working with us as the case began to reach out to other communities. Now that these subjects have been apprehended we will continue to work in this area and encourage citizens to call in with any additional complaints of drug sales. This will make a difference.”
In the Spring of 2013, NLRPD and the DEA began a joint investigation of a cocaine and crack cocaine distribution organization operating out of North Little Rock. The investigation revealed that since late 2011, a cocaine distribution cell linked to McAllen, Texas was operating from a location in rural Saline County. The investigation revealed that the head of the cell was an individual from the Mc Allen area named Hector Delgado. Delgado, along with his associate Wilmer Geovani Fuentes-Ramos imported multiple kilograms of cocaine from the McAllen, Texas area, which they distributed through two individualsJustice123! in the Little Rock area, Roosevelt Martin and Robert Young, Jr. Martin and Young distributed kilogram quantities to several individuals, including Tellys Clemmons, Mantrel Young, Ivory Johnson, and Harold Allen, Jr. Allen, a resident of North Little Rock, distributed cocaine to Tyrone Washington, who converted the cocaine to crack cocaine and distributed crack cocaine from a house located in the Vestal Park area of North Little Rock. Over the course of 2012 and 2013, the drug trafficking organization was responsible for distributing 8-10 kilograms of cocaine per week in the Little Rock area with a street value of $248,000 to $310,000.
The investigation culminated with an April 2, 2014 indictment of Delgado, Fuentes-Ramos and 21 associates for drug and weapons charges. The investigation has thus far resulted in the seizure of over $142,000 cash and other assets valued at approximately $11,000; over 10 kilograms of cocaine; approximately 11 ounces of crack cocaine with a street value of $13,200; 11 vehicles, and 11 firearms.
This case was investigated by the North Little Rock Police Department in cooperation with the Drug Enforcement Administration – Little Rock HIDTA Group 62 composed of officers from the North Little Rock Police Department, the Pulaski County Sheriff’s Office, the Jefferson County Sheriff’s Office, the Benton Police Department and the Arkansas State Police. Also involved in the investigation were the United States Marshal’s Service; Bureau of Alcohol, Tobacco Firearms and Explosives; Arkansas National Guard; Little Rock Police Department; Bryant Police Department; Jacksonville Police Department; and the Saline County Sheriff’s Department.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
Little Rock Grand Jury Returns Indictment in Federal Income Tax Refund SchemeRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Christopher A. Henry, Special Agent in Charge, Internal Revenue Service-Criminal Investigation, announced today that Christopher Minor, age 39; Annie Watkins, age 60; and Roosevelt Oliver, age 50, all of Osceola, Arkansas, were indicted on charges of filing and conspiring to file false, fictitious and fraudulent claims for federal income tax refunds in a 14-count indictment handed down by a federal grand jury in Little Rock.
“At the IRS, protecting taxpayer money is a matter we take extremely seriously. An integral part of the agency’s mission involves detecting and catching fraudulent tax refund claims," stated SAC Henry. "The object of these schemes is to defraud the government and the taxpaying public.”
The indictment alleges that beginning in or about January 2010 through February 2011, the defendants participated in a scheme to obtain payment of federal income tax refunds from the Internal Revenue Service (“IRS”) by using unemployed individuals’ names, social security numbers, and dates of birth to file false tax returns in the individuals name without their consent.
The refunds were received in the form of a check or debit card, and in most instances, the taxpayer was unaware of the return being filed and did not receive any part of the proceeds. In total, Minor, Watkins and Oliver caused approximately 29 false returns to be filed, claiming approximately $91,835.00 in false refunds.
This investigation was conducted by IRS-Criminal Investigation. Assistant U.S. Attorney Cameron McCree is prosecuting this case for the United States.
Note: An indictment is a form of accusation and is not evidence of guilt. The defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Husband and Wife Doctors Indicted for Healthcare FraudRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas announced today that a Federal Grand Jury has indicted Dr. Robert Barrow, age 60, and Dr. Angela Barrow, age 50, of Little Rock charging both with one count of conspiracy to commit health care fraud and six counts of health care fraud. In addition, Dr. Robert Barrow is also charged with four counts of making false statements in relation to health care matters.
According to the indictment, Dr. Robert Barrow and Dr. Angela Barrow were husband and wife physicians who together owned and operated Your Doctor’s Office, a medical clinic in Little Rock. It goes on to allege that the doctors affiliated with a local massage therapist, whose services were billed to health insurers as physical therapy and with whom the doctors would split the proceeds. Related claims to Medicare and Arkansas Blue Cross and Blue Shield alone exceeded $1.2 million during the alleged fraud. The indictment also claims that Dr. Robert Barrow billed for therapeutic ultrasounds that were never performed.
If convicted, the Barrows face up to ten years’ imprisonment on each of the six counts of health care fraud as well as ten years’ imprisonment for the overarching conspiracy. Dr. Robert Barrow also faces up to five years’ imprisonment on each count of making false statements in relation to health care matters.
The indictment arises out of a joint investigation by the Federal Bureau of Investigation and the Office of the Inspector General for the U.S. Department of Health and Human Services. The case is being prosecuted by Assistant United States Attorney Alexander Morgan.
An indictment contains only allegations. The Defendants are presumed innocent until proven guilty.
Former ThermoEnergy Executive Indicted on Mail Fraud and Employment Tax ChargesRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas and Christopher A. Henry, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Nashville Field Office, announced today that a Federal Grand Jury has indicted Andrew Thurman Melton, age 67, a resident of Pulaski County, Arkansas, on 12 counts of mail fraud and 5 counts of failing to truthfully account for and pay over employment taxes to the IRS.
"Corporate Executives have a responsibility to withhold income taxes for their employees and then remit those taxes to the IRS," said Special Agent in Charge Christopher A. Henry with IRS Criminal Investigation. "The failure to pay over withheld taxes is a serious offense. IRS Criminal Investigation vigorously pursues anyone who collects taxes and fails to timely remit those taxes."
According to the Superseding Indictment, Melton was a Certified Public Accountant and the Executive Vice President, Chief Financial Officer (CFO), and Treasurer for ThermoEnergy Corporation at the time of the alleged offenses. Melton’s wages were supposed to be garnished as a result of a Judgment against him personally. However, Melton allegedly caused checks to be issued from ThermoEnergy to pay the Judgment and expensed those payments on ThermoEnergy’s financials as if the payments were legitimate business expenses of the company. The Superseding Indictment alleges that between, in or about August 2006 and April 2009, through this scheme, he obtained approximately $109,575.80.
Additionally, the Superseding Indictment charges that during the calendar years 2005 through 2009, ThermoEnergy withheld tax payments from its employees’ paychecks. However, beginning in approximately October 2005, ThermoEnergy made no payroll tax payments to the IRS and failed to file quarterly employment tax returns (Forms 941) with the IRS. Altogether, ThermoEnergy failed to account for and pay over approximately $1.9 million in payroll taxes. As the Executive Vice President, CFO, and Treasurer, Melton was responsible to collect, truthfully account for, and pay over ThermoEnergy’s payroll taxes.
The statutory penalty for Mail Fraud is not more than 20 years’ imprisonment and/or not more than a $250,000 fine with not more than three years of supervised release. The statutory penalty for Employment Tax Fraud is not more than 5 years’ and/or not more than a $250,000 fine with not more than 3 years supervised release.
The investigation was conducted by the Federal Bureau of Investigation and IRS Criminal Investigation.
Note: An indictment is a form of accusation and is not evidence of guilt. The defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Onebanc Senior Vice President Indicted on Bank Fraud ChargesRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; Christopher A. Henry, Special Agent in Charge of the IRS-Criminal Investigation - Nashville Field Office; David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation; Christy Romero, Special Inspector General for TARP (SIGTARP); and Mark Bialek, Inspector General of the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau; announced an Indictment charging Gary Alan Rickenbach, age 56, of Little Rock, Arkansas with one count of conspiracy to commit bank fraud, misapplication of bank monies, making false entries to deceive the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, obstructing an OCC examination and money laundering was unsealed today. The indictment also seeks forfeiture of the monies involved.
“When a bank executive misuses their position, it violates the public trust and puts the financial stability of the institution at risk,” said SAC Henry. “ This indictment demonstrates the government’s commitment to protecting the integrity of our nation’s financial system. We are proud to work with our law enforcement partners by lending our expertise in these complex financial investigations.”
“Rather than deal with the reality of having made a $1.5 million bad loan that couldn’t be collected, Rickenbach, a senior loan executive at Onebanc, and others, in early 2009, allegedly attempted to hide the loss from non-bank board members and federal regulators in order to conceal the bank’s true financial condition, and Rickenbach looked to TARP money to fund his fraud,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “Later, when bank executives worried that the bank’s initial October 2008 request for $10 million in taxpayer TARP funds wouldn’t be enough to improve the bank’s capital position, they increased their request to $17.3 million, which the bank received in June 2009. Defrauding the federal government and taxpayers out of their hard-earned TARP investments is criminal, morally bankrupt, and won’t be tolerated, and SIGTARP and our law enforcement partners will aggressively investigate all allegations of fraud related to TARP and bring perpetrators to justice.”
“We are committed to holding accountable wrongdoers whose fraudulent actions impact the safety and soundness of financial institutions regulated by the Federal Reserve Board,” said Mark Bialek, Inspector General.
According to TARP records, One Financial Corporation, the parent company of One Bank and Trust of Little Rock, Arkansas, received $17.3 million in federal taxpayer funds through the U.S. Department of the Treasury Troubled Asset Relief Program (TARP) in June 2009. To date, these funds are still outstanding.
Rickenbach was a Senior Vice President of Onebanc until February 2013. The indictment charges that he conspired with other persons to make false loans for the purpose of hiding the bank’s loss of a $1.5 million bad loan made in Aril 2007. The bad loan became uncollectable in 2008, and beginning in 2009, Rickenbach and others hid the loss from the federal examiners by making loans to entities that he created or controlled. The new loans made by Rickenbach made Onebanc appear to have less financial problems to the federal examiners than was true.
Rickenbach faces a possible sentence of not more than five years’ imprisonment, not more than a $250,000 fine and/or not more than three years of supervised release for the conspiracy charge. The maximum sentence for the money laundering conspiracy charged in Count 2 is not more than 20 years’ imprisonment, not more than a $500,000 fine and/or not more than five years of supervised release.
The case was investigated by special agents from the IRS-Criminal Investigations, Federal Bureau of Investigation, SIGTARP, Federal Reserve, and the FDIC. First Assistant United States Attorney Pat Harris and Assistant United States Attorney Angela Jegley are prosecuting this case for the United States.
The charges set forth in an Indictment are merely allegations. A defendant is presumed innocent until proven guilty.
Former Financial Advisor Sentenced to 24 Months in Prison on Bank Fraud ChargesRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that Christopher Williams of Bryant, Arkansas appeared before United States District Judge Susan Weber Wright to be sentenced for bank fraud. After receiving testimony from the case agent and a letter written on behalf of the elderly lead victim, Judge Wright sentenced Williams to 24 months’ imprisonment to be followed by 5 years’ of supervised release. Judge Wright also ordered Williams to pay over $200,000 in restitution to the victims of his offense.
A federal grand jury indicted Williams in January 2013 on charges of bank fraud and aggravated identity theft. Williams pled guilty to bank fraud in December 2013. When entering his plea, Williams admitted that after losing his job as a financial adviser at Charles Schwab in June 2012, he reestablished contact with a former client. During visits to the client’s Little Rock home, Williams obtained sensitive financial account information that he used to access the client’s online account at Bank of America and also deceived the client into signing personal checks made payable to third-party organizations under Williams’s control. Williams then used the client’s personal identifiers to create an E*TRADE online brokerage account to facilitate the transfer of money out of the client’s Bank of America account and opened credit cards in the client’s name for Williams’s own personal use. The scheme persisted until his arrest in December 2012.
The United States Attorney acknowledges the valuable assistance of Special Agent Charles Briscoe of the Office of the Inspector General for the Social Security Administration, Special Agent Lee Wood of the United States Secret Service, and Special Agent Amy Briscoe of the United States Naval Criminal Investigative Service for their extraordinary work on this investigation. Assistant United States Attorney Alexander D. Morgan prosecuted the case for the United States.
Former Arkansas State Treasurer Martha Ann Shoffner Guilty on Federal Charges of Extortion and Receipt of BribesRead 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, announced today that a federal jury found former Arkansas State Treasurer Martha Ann Shoffner, age 68, of Newport, guilty 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. A forfeiture allegation of $4,020 is also included in the indictment.
Martha Shoffner was elected as Treasurer for the State of Arkansas in 2006 and 2009. The United States presented testimony that historically, the Treasurer’s Office had used between 10 and 15 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 approached Steele Stephens, a broker with St. Bernard Financial, and requested that he purchase a house in Little Rock for her to stay in free of charge, but Stephens feared such an arrangement would be discovered. As an alternative, Shoffner suggested that Stephens make payments of $1,000 per month to her. Ultimately, it was agreed that he would pay Shoffner $6,000 every six months.
In mid-2010, Stephens made the first $6,000 payment to Shoffner at the 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 $2.5 million in commissions. Stephens made a total of six payments of $6,000 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 testified that he concealed the $6,000 payments in a pie box when he delivered money to Shoffner in Newport, Arkansas.
In January 2013, Stephens began cooperating with the Federal Bureau of Investigation. As part of his cooperation, he recorded a meeting with Shoffner at her home in Newport, Arkansas, wherein Shoffner acknowledged the agreement regarding the $6,000 payments and receipt of payments. Shoffner also admitted to lying during the September and December 2012 legislative audit hearings about receiving money from Stephens and would take it to her grave. In May 2013, Stephens delivered an apple 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 Shoffner’s 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 was arrested.
Testimony also presented that in September 2009 and November 2010, Stephens provided cash for campaign events, which was not reported by Shoffner on her campaign finance reports. According to testimony, Shoffner kept the cash and never deposited it into her campaign account.
The statutory penalty for extortion and attempted extortion under color of official right, in violation of 18 U.S.C. § 1951(a), is not more than 20 years’ incarceration in the Bureau of Prisons with a possible fine of up to $250,000, and not more than 3 years supervised release.
The statutory penalty for receipt of a bribe by an agent of a state government receiving federal funds, in violation of 18 U.S.C. § 666(a)(1)(B), is not more than 10 years’ 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 Federal Bureau of Investigation.
Pine Bluff Family Found Guilty in tax Fraud Scheme; Fraudulent Refunds Submitted Totaled More Than $1.7 MillionRead the Press Release
Little Rock - Christopher R. Thyer,United States Attorney for the Eastern District of Arkansas; and Christopher A. Henry, Internal Revenue Service-Criminal Investigation Special Agent in Charge; announced that after a two and one-half week trial, Brenda Laws, age 56, Lareka Laws, age 35, Jameel Laws, age 27, and Milton Laws, Jr., age 32, all of Pine Bluff, were all found guilty on February 13, 2014, of conspiracy to defraud the United States by filing false tax returns.
Brenda Laws was found guilty of filing 249 false tax returns for 249 different people who claimed the Frist Time Home Buyer (FTHB) credits on their 2008 tax return. She was also convicted of aiding her son, Milton, in the filing of his false tax return.
Lareka Laws was convicted of conspiracy and two counts of filing false tax returns. Jameel Laws was convicted of conspiracy and filing his own false tax return. Milton laws, Jr. was convicted of conspiracy and filing his own false tax return with the assistance of his mother, Brenda.
“The blatant abuse of the tax code credit for first time homebuyers by this family for their personal gain and gambling funds is inexcusable,” stated Thyer. “When 56% of all tax returns with the FTHB credit from Jefferson County and 46% of the same FTHB credit returns from Alteimer filed in 2009 were filed from the Laws residence, it didn’t take long for this investigation to begin and end with the Laws. I am grateful for the tedious investigative work of the IRS agents and for the attention the jury gave to the vast amount of evidence during the long trial. Their service to the citizens of Arkansas has brought about the just conviction of a family who thought nothing of stealing from law-abiding taxpayers.”
“At the IRS, protecting taxpayer money is a matter we take extremely serious. An integral part of the agency’s mission involves detecting and catching fraudulent tax refund claims,” stated SAC Henry. “Convictions, like those in this case, send a loud and clear message that individuals who violate our nation’s tax laws will be fully investigated, prosecuted, and subjected to the full punishment of the law for their actions.”
Stephen Barnett and Tenesha Roberts, also indicted in this case, both pled guilty to the conspiracy prior to the trial. Both testified against the Laws at trial.
According to the indictment, all six individuals conspired to defraud the Internal Revenue Service (IRS) by filing 2008 federal income tax returns in their own names and in the names of others without their knowledge to claim refunds they knew they were not entitled to receive. This group of individuals was allegedly responsible for the filing of a total of 251 tax returns which falsely claimed the First-Time Homebuyers Credit. The refund claims totaled more than $1.7 million. Brenda and Lareka Laws created false Forms 5405, the First-Time Homebuyer Credit Form, which contained fabricated addresses and acquisition dates of property that the taxpayer listed did not purchase. These returns were then filed electronically with the IRS.
Milton Laws, Jr. was detained after trial. His pretrial release was revoked December 10, 2013, by United States Magistrate Judge Beth Deere. The Third Motion to Revoke stated that Milton violated the terms of his release by submitting diluted specimens for drug screenings on six separate occasions during 2012. On October 29, 2012, his drug screen tested positive for marijuana. On October 19, 2012, he failed to make payments on citations. On December 12, 2012, his blood alcohol content test revealed a 0.343% blood alcohol level. He failed to appear for required counseling sessions and on March 5, 2013, was terminated from outpatient treatment as a result of his lack of participation in treatment services. He continued to disregard the restrictions put in place by the United States Magistrate Judge resulting in his arrest. All other defendants in the case have remained out on their own recognizance.
Sentencing for all defendants will be set by the Court at a later date.
Each individual faces a maximum penalty of 10 years in prison, a fine of $250,000, or both with not more than 3 years’ supervised release on the conspiracy count. Each false claim count carries a maximum penalty of 5 years in prison, a fine of $250,000, or both with not more than 3 years supervised release.
The investigation was conducted by the Internal Revenue Service - Criminal Investigation Division. First Assistant United States Attorney Pat Harris and Assistant United States Attorney Stephanie Mazzanti have prosecuted this case for the United States.
Forest Place Apartments’ Arsonist Arrested on Federal ChargesRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; and Grover Crossland, Resident Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) – Little Rock Field Office; announced that Lacey Rae Moore, age 43, of Little Rock, was arrested and appeared today in federal court on an Indictment handed down by a federal grand jury on Thursday, February 6, 2014. The Indictment, unsealed after her arrest, charges Moore with five counts of arson, two counts of arson resulting in injury and one count of possession of an unregistered destructive device.
“Today’s arrest of this arsonist is the result of excellent investigative work by the Bureau of Alcohol, Tobacco, and Firearms agents, Little Rock Fire Department Fire Marshal’s Office, Arkansas State Police Fire Marshal’s Office and Little Rock Police Department,” stated Thyer. “Through their diligence and expertise the mystery that caused millions of dollars’ worth of damage, destroyed apartment buildings, displaced scores of residents and injured two firefighters, has been solved.”
The Indictment alleges that Moore attempted to maliciously damage and destroy the Forest Place Apartments by use of fire and explosive materials. The fires were set on or about February 24, February 25, 2013; May 15, 2013; May 16, 2013; June 4, 2013; June 22, 2013; and June 28, 2013. As a result of the fires set May 16 and June 4, 2013, two Little Rock Firefighters were injured. The final charge alleges that on July 1, 2013, Moore knowingly possessed a destructive incendiary device and bomb that was not registered to her in the National Firearms Registration and Transfer Record.
The largest fire occurred on May 16, 2013, which nearly destroyed the entire North Building of Forest Place Apartment and caused approximately $4,000,000 in damage. As a result of this fire more than 130 people were evacuated by fire department personnel, with approximately 400 evacuations total and numerous balcony rescues. Approximately 79 people were permanently displaced as a result of this fire.
The fire on June 28, 2013, resulted in the evacuation of approximately 75-100 people from the South Building and resulted in another 11 people being permanently displaced.
At today’s hearing before United States Magistrate Judge Beth Deere, Moore pled, “not guilty,” to the charges. A detention hearing has been set for Wednesday, February 12, 2014, at 11 a.m. before U.S. Magistrate Deere. The trial was set for March 11, 2014, before United States District Judge Billy Roy Wilson.
Moore faces at least five years up to 20 years’ incarceration with not more than three years’ supervised release for each arson charge. The arson charges with injury have a statutory sentence of not less than seven years’, not more than 40 years’ incarceration with not more than 5years of supervised release. Possession of a destructive device carries a possible sentence of not more than 10 years in prison, with not more than three years of supervised release. Each count of the indictment also carries a possible fine of not more than $250,000.
The investigation was conducted by a special task force headed by the Bureau of Alcohol, Tobacco, Firearms and Explosives with substantial assistance from the Little Rock Fire Department Fire Marshal’s Office, the Arkansas State Police Department Fire Marshal’s Office, and the Little Rock Police Department. The case is being prosecuted by Assistant United States Attorney Chris Givens.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
Former State Treasurer Martha Shoffner Charged with Mail FraudRead 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 announced that new charges were handed down by a federal grand jury charging Martha Anne Shoffner, age 69, of Newport with ten counts of mail fraud.
The Second Superseding Indictment alleges that Shoffner used $9,800 of campaign funds from her re-election campaign for Treasurer of the State of Arkansas for personal expenses. According to the Indictment, campaign checks were mailed for payments to a personal Wells Fargo credit card from November 5, 2010 through October 9, 2011. Individual checks ranged from $200 to $5,000. The charges to the credit card included clothing, cosmetics and other personal expenses.
The new counts of mail fraud against Shoffner are in addition to the previous six counts of extortion under color of official right, one count of attempted extortion and seven counts of receipt of a bribe by an agent of a state government receiving federal funds. Trial is set for March 3, 2014, before United States District Judge J. Leon Holmes.
The charges stem from an investigation by the Federal Bureau of Investigation’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.
Mail fraud carries a possible sentence of not more than 20 years’ imprisonment and/or not more than a $250,000 fine with not more than three years of supervised release.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
Fugitive ‘Nurse’ ArrestedRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas announced the arrest of Susan Elaine Boyce, 59, formerly of Pleasant Plains, Arkansas. Boyce was arrested last night in Howell County, Missouri by Social Security Administration - Office of the Inspector General agents and by deputies from the Howell County Sheriff’s Office.
Law enforcement succeeded in locating Boyce by acting upon a lead generated by the Office of the Inspector General for the U.S. Department of Health and Human Services. Boyce is scheduled to make her initial appearance in federal court at 4 p.m. this afternoon before United States Magistrate Judge Jerome T. Kearney.
“I want to commend the agents from the Social Security and the Department of Health and Human Services Administration – Offices of the Inspector General for continuing to develop and pursue leads in this investigation resulting in the apprehension of Ms. Boyce,” stated Thyer. “We could not rest knowing she might try to pose as a nurse in some other town to get another healthcare-related position in a school or other facility. The health and safety of anyone who would have trusted she was a qualified healthcare provider was at risk. Thankfully, people no longer have to worry now that she is in custody.”
Boyce was indicted by a federal grand jury on September 5, 2012. The seven-count indictment charged her with wire fraud, aggravated identity theft and misuse of a social security number. Boyce used an Arkansas State Board of Nursing license number and a Social Security Number belonging to another person to obtain employment as a school nurse in Searcy, Arkansas, from the 2007-2008 school year through the 2011-2012 school year.
The investigation is being conducted by agents from the Social Security Administration-Office of the Inspector General and the Office of the Inspector General for the U.S. Department of Health and Human Services. The case is being prosecuted by Assistant United States Attorney Alexander Morgan.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
Blytheville-area Drug Traffickers ArrestedRead the Press Release
Little Rock -Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; William J. Bryant, Assistant Special Agent in Charge of the Little Rock District Office of the Drug Enforcement Administration (DEA); and Scott Ellington, District Prosecuting Attorney for the Second Judicial District of Arkansas; announced the unsealing of a 62-count indictment charging multiple defendants in Arkansas, Missouri and Oklahoma, with multiple drug charges. An investigation into large-scale drug trafficking resulted in the arrests of 21 defendants on methamphetamine and marijuana charges Thursday. Those arrested are scheduled to appear before United States Magistrate Judge Jerome T. Kearney at 1 p.m. today. Four defendants remain at large.
"The result of many hours of investigation by dedicated law enforcement agents and officers is clear – drug traffickers will be arrested and prosecuted to the maximum extent of the law,” stated Thyer. “We continue to target the networks supplying meth across the northeastern region of Arkansas to take the dealers, the drugs, and the weapons out of our communities.”
ASAC Bryant added, “Methamphetamine continues to be the number one drug threat to the citizens of Arkansas. As you can see in this case, it not only affects our urban areas but also our rural areas such as Manila, Arkansas. As a result of a great team effort of federal, state, and local law enforcement, this drug trafficking organization was dismantled.”
“The Arkansas State Police has made an unconditional commitment toward working with all law enforcement agencies and provide whatever resources we can to remove from our communities those individuals who provide a source of illegal drugs,” said Colonel Stan Witt.
District Attorney Ellington added, "I want to thank U.S. Attorney Chris Thyer, Bill Bryant and the DEA, Colonel Stan Witt and the Arkansas State Police, and the other federal agencies who assisted our local officers with the investigation and execution of this operation. It is good to know that when we run up against a significant distribution organization as we saw in this instance, we only have to ask for assistance and they are willing to step up and take the lead in the investigation and apprehension of those bringing methamphetamine into our community. I also want to thank our Drug Task Force for their tireless efforts in this case and every case they work."
Yesterday, federal, state and local law enforcement arrested 17 defendants during an early-morning operation focused in Blytheville. Roy Witherspoon, age 30, of Blytheville, was arrested Thursday night. One defendant, Renaldre Jackson, age 22, of Blytheville, was already in federal custody after pleading guilty to another drug charge. Two others, Quinton Wiencek, age 41, of Chaffee, Missouri and Timothy Sheard, age 35, of Jonesboro, Arkansas, were in state custody on unrelated charges. Cordero Lockhart, a/k/a “KO”, age 25; Antwon Bailey, a/k/a “Pee Wheezy”, age 27; Tamika Petty, age 26; and Jamal Shontal Piggie, a/k/a “Joker”, age 27; all of Blytheville are still at large. More than $50,000 in drug proceeds, multiple cars and motorcycles, drug paraphernalia, and several firearms were seized from multiple houses during the operation.
The DEA investigation began in late 2011 and early 2012. Multiple undercover operations and numerous law enforcement actions, including multiple seizures of methamphetamine were conducted by the DEA and 2nd Judicial Drug Task Force.
The Indictment handed down by a Federal Grand Jury January 7, 2014, charges 25 defendants in sixty-two separate counts stemming from a large-scale investigation into methamphetamine and narcotics trafficking in Northeast Arkansas. Four defendants live in Southeastern Missouri, one in Oklahoma, and one in Little Rock. The charges include conspiracy to possess with intent to distribute more than 500 grams of methamphetamine, conspiracy to possess with intent to distribute marijuana, aiding and abetting distribution of methamphetamine, misprision of a felony, and use of telephone to facilitate a drug trafficking crime. 24 of the defendants were charged with conspiracy to distribute more than 500 grams of methamphetamine. Each defendant charged with conspiracy will face a possible sentence of not less than 10 years to life imprisonment. All 25 defendants also face from one to three telephone counts which carry a statutory sentence of not more than four years imprisonment.
The investigation was conducted by the DEA and the ATF Cape Girardeau Field Office, with substantial assistance from the 2nd Judicial Drug Task Force, which includes officers from the Jonesboro Police Department, Blytheville Police Department, the Osceola Police Department, Craighead County Sherriff’s Office and the Mississippi County Sheriff’s Office. Assistance was also provided by the Southeast Missouri Drug Task Force, ATF Little Rock Field Office, FBI Jonesboro Field Office, United States Postal Inspection Service, United States Marshal Service, the Arkansas State Police, the Arkansas National Guard, and Little Rock Police Department. The case is being prosecuted by Assistant United States Attorney Chris Givens.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
Bryant Man Pleads Guilty to Bank FraudRead the Press Release
Little Rock - LITTLE ROCK – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced that Christopher Williams, age 33, of Bryant, plead guilty today to one count of bank fraud before United States District Judge Susan Webber Wright.
A federal grand jury indicted Williams in January 2013, alleging three counts of bank fraud and one count of aggravated identity theft. In pleading guilty to bank fraud, Williams admitted that after losing his job as a financial adviser at Charles Schwab in June 2012, he reestablished contact with a former client. During visits to the client’s Little Rock home, Williams obtained sensitive financial account information that he used to access the client’s online account at Bank of America and also deceived the client into signing personal checks made payable to third-party organizations under Williams’s control. Williams then used the client’s personal identifiers to create an E*TRADE online brokerage account to facilitate the transfer of money out of the client’s Bank of America account and opened credit cards in the client’s name for Williams’s own personal use. The scheme persisted until his arrest in December 2012.
Upon Judge Wright’s acceptance of the guilty plea to the bank fraud alleged in Count One, the United States successfully moved to dismiss the remaining bank fraud and aggravated identity theft charges pursuant to the plea agreement. Williams was not detained. Williams faces a possible sentence of up to thirty years’ imprisonment and a fine of up to $1 million.
The United States Attorney wishes to thank Special Agent Charles M. Briscoe of the Office of the Inspector General for the Social Security Administration, Special Agent Lee Wood of the United States Secret Service, and Special Agent Amy Hoffman of the United States Naval Criminal Investigative Service for their extraordinary work on this investigation. Assistant United States Attorney Alexander D. Morgan is prosecuting the case for the United States.
Two Cabot Residents Indicted on Federal Drug ChargesRead the Press Release
Dodson faces three counts of assault with a deadly weapon
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced that Mark Lyle Dodson, age 53, and Mary Olszak, age 52, both of Cabot, Arkansas, were indicted today by a federal grand jury. The nine-count indictment charges Dodson and Olszak with one count of conspiring to distribute five grams or more of methamphetamine, also known as “ice”. Dodson faces three additional counts of assault with a deadly weapon for firing at officers aiding federal agents and three related counts of possession of a firearm in relation to a crime of violence. Olszak was indicted on two additional counts of distributing methamphetamine.
The weapons charges against Dodson stem from the shooting that occurred during execution of a search warrant in Cabot on November 22, 2013. According to the indictment, Dobson fired a 16-gauge shotgun at three members of the Jacksonville Police Special Response Team, who were assisting Special Agents of the Drug Enforcement Administration (DEA).
If convicted, the methamphetamine conspiracy exposes the defendants to between five and forty years’ imprisonment, and methamphetamine distribution counts subject Olszak to up to twenty years’ imprisonment. For his part, Dodson also faces twenty years’ imprisonment on each of the three counts of assault on an officer assisting federal agents. Related counts charging Dodson with possession of a firearm in connection with a crime of violence trigger mandatory imposition of a consecutive sentence of ten years’ to life imprisonment on the first count, and consecutive sentences of twenty-five years’ to life imprisonment on any additional count(s).
The Drug Enforcement Administration, Little Rock Field Office; Jacksonville Police Department; and Pulaski County Sheriff’s Office are investigating this matter. Assistant United States Attorney Alexander D. Morgan is prosecuting the case for the United States.
The charges set forth in an Indictment are merely allegations. A defendant is presumed innocent until proven guilty.
Owner of Mountain Pure Water Indicted on Multiple Counts of Wire Fraud and Money LaunderingRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas announced that John B. Stacks, owner of Mountain Pure Water, was indicted today by a Federal Grand Jury on three counts of wire fraud, three counts of money laundering, one count of submitting a false claim to the Small Business Administration (SBA), and four counts of making a false statement.
The Indictment charges that Stacks obtained an SBA loan in 2009 for $703,300 under false pretenses. According to the Indictment, Stacks claimed he had over $500,000 worth of Mountain Pure Water equipment at his farm in Damascus, Arkansas. Stacks further alleged that this equipment was destroyed when a tornado touched down in the area in May 2008. The wire fraud and money laundering charges stem from three transfers of money from the SBA in Kansas City, Missouri to Stacks’ General Account at Home Bank of Arkansas in Greenbriar. The false claim and statement charges are related to the Loan Authorization and Agreement and other related documents and statements Stacks submitted to the SBA to induce the SBA to make the loan.
If convicted, Stacks faces a statutory maximum penalty for Wire Fraud of not more than 20 years; a statutory maximum penalty for Money Laundering of not more than 10 years; a statutory penalty for False Claim of not more than 5 years; and a statutory penalty for false statement of not more than 5 years of imprisonment.
The case was investigated by the SBA Office of Inspector General and the IRS Criminal Investigation Division. The case is being prosecuted by Assistant United States Attorney Angela Jegley and First Assistant United States Attorney Pat Harris.
West Memphis Arrests Take Violent Drug Dealers Off the StreetsRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; along with Howard S. Marshall, Acting Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation; Colonel Stan Witt, Arkansas State Police; and Chief Donald Oakes, West Memphis Police Department; announced today that on November 6, 2013, a federal grand jury returned a twenty-five count indictment charging twenty individuals in Crittenden County with participating in a drug conspiracy and firearms offenses.
“I made a commitment to the Arkansas Delta law enforcement to work side-by-side with them to take violent drug dealers off their streets,” stated Thyer. “The arrests this morning were the result of a coordinated effort with the West Memphis Police Department. When we work together, we will make a difference for the citizens of Eastern Arkansas.”
“Today's arrests in Operation Delta Crossroads are intended to reiterate the strong message to gang members and other criminals who pose the greatest threat of violence to the safety and security of those who live and work in Eastern Arkansas," stated Acting FBI Special Agent in Charge Howard S. Marshall. "We are here, we are working together, and we are committed to dismantling and disrupting your illegal operations.”
“With the arrests made this morning we took a big step in the fight against drugs and violence it in our community, and it is a great example of what can be accomplished when Local, State and Federal Law Enforcement cooperate for a common goal.”
The charges stem from a state and federal Organized Crime and Drug Enforcement Task Force (OCDETF) investigation operationally 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 assisted extensively 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.
Defendants arrested in a round-up conducted by the FBI, ASP, and West Memphis Police Department, on November 18, 2013 will appear before United States Magistrate Judge Joseph J. Volpe for Plea and Arraignment on November 19, 2013, at 11:00 a.m. The remaining defendants will appear for Plea and Arraignment on a later date. The case, 4:13CR00329 BSM, is pending before U.S. District Chief Judge Brian S. Miller.
The investigation was conducted by the United States Attorney=s Office, FBI, ASP, and West Memphis Police Department. It is being prosecuted by Assistant United States Attorney Julie Peters.
An indictment contains only allegations. The defendants are presumed innocent unless and until proven guilty.
See attachment for specific information on individual defendants.
Delta Crossroads
Attachment
Statutory Sentences
Conspiracy to distribute and to possess with intent to distribute more than five hundred grams of mixtures containing cocaine and more than twenty-eight grams of mixtures containing cocaine base, commonly known as crack cocaine, in violation of 21 U.S.C. ' 846 carries a possible punishment of no less than five years and up to forty imprisonment, a fine of up to $5 million, and not less than four years and up to life supervised release.
Possession with intent to distribute cocaine in violation of 21 U.S.C. ' 841(a)(1) carries a possible punishment up to twenty years imprisonment, a fine of up to $1 million, and not less than three years and up to life supervised release.
Possession with intent to distribute crack cocaine in violation of 21 U.S.C. ' 841(a)(1) carries a possible punishment up to twenty years imprisonment, a fine of up to $1 million, and not less than three years and up to life supervised release.
The use of a telephone in furtherance of a drug trafficking crime in violation of 21 U.S.C. § 846 carries a possible punishment of up to four years imprisonment, a fine of up to $250,000, and up to one year supervised release.
The possession of a firearm in furtherance of a drug trafficking crime in violation of 18 U.S.C. ' 924(c) carries a possible punishment of no less than five years and up to life imprisonment, up to a $250,000 fine, and up to five years supervised release.
Osiel Acuna-Perez age 34 (BOP Custody) Memphis, TN Demetreuis Barrett age 30 West Memphis, AR Brandon Bohannon age 29 West Memphis, AR Brent Bohannon age 21 West Memphis, AR Willie Brown age 35 West Memphis, AR Willie Cooper age 50 West Memphis, AR David Edwards age 28 Olive Branch, MS Wendell Glenn age 27 West Memphis, AR David Green age 25 West Memphis, AR Delvin Green age 23 West Memphis, AR Courtney Hamilton age 23 West Memphis, AR John Hayes age 48 Houston, TX Rafael McDaniel age 31 West Memphis, AR Michael McDonald age 27 West Memphis, AR Gregory Miller age 34 (BOP Custody) Memphis, TN Deloricko Prewitt age 32 West Memphis, AR Detarious Robinson age 21 West Memphis, AR Dominique Robinson age 31 West Memphis, AR Jesse Robinson age 23 West Memphis, AR Ronnie Sanes age 33 West Memphis, AROnebanc Borrower Indicted for $1.5 Million Bank FraudRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; Christopher A. Henry, Special Agent in Charge of the IRS-Criminal Investigation Nashville Field Office; Howard S. Marshall, Acting Special Agent in Charge of the Federal Bureau of Investigation, and Christy Romero, Special Inspector General for TARP (SIGTARP) announced that an Indictment charging Alberto Solaroli, age 59, of Jacksonville, Florida, with one count of bank fraud was unsealed November 14, 2013. The indictment also seeks $1.5 million in forfeiture. A warrant has been issued for his arrest.
“As the financial institutions recover from the economic downturn, our investigative partners on the Financial Fraud Task Force are closely scrutinizing irregularities in loan transactions to determine if deceit is involved,” stated Thyer. If it is, those who circumvent a lender’s loan requirements through fraud will have to face justice and a substantial prison sentence.”
“Bank fraud burdens lenders with bad loans and weakens our economy. Today's indictment is strong reminder of the seriousness of these crimes," said Christopher A. Henry, Special Agent in Charge of the IRS Criminal Investigation. "Individuals who engage in this type of financial fraud should know they will not go undetected and will be held accountable.”
“The charge against Mr. Solaroli for defrauding OneBanc is the result of a strong collaborative effort among partners,” stated Acting FBI Special Agent in Charge Howard Marshall. “We will continue to work together with the goal of bringing Mr. Solaroli to Arkansas to answer these allegations.”
Solaroli, a Canadian citizen purporting to be the owner of patents for technology related to a more efficient combustion engine, was living and working in Jacksonville, Florida when he borrowed $1.5 million, via a personal line of credit, from OneBanc in April 2007. He was approved for the loan based on financial statement he signed in which he claimed assets of $170,900,000 with a net worth of more than $169 million. According to the Indictment, Solaroli falsified the nature and scope of his assets, the value of his assets, and his overall personal net worth. As a result of his sworn financial statement, Solaroli received a one year line of credit which he took within the first month of the loan approval, with over $900,000 being paid to Porche Motorsport, N.A. Solaroli never made a single payment on the loan causing OneBanc to sue Solaroli. In 2008, OneBanc received a civil judgment in Florida for $1.5 million dollars which Solarioli has not paid.
The maximum sentence for bank fraud is not more than 30 years imprisonment, not more than a $1,000,000 fine and/or not more than five years of supervised release.
The case was investigated by special agents from the IRS-Criminal Investigations, Federal Bureau of Investigation, SIGTARP, Federal Reserve, and the FDIC. The case is prosecuted by First Assistant United States Attorney Pat Harris and Assistant United States Attorney Angela Jegley.
According to TARP records, One Financial Corporation, the parent company of One Bank and Trust of Little Rock, Arkansas, received $17.3 million in federal taxpayer funds through the U.S. Department of the Treasury Troubled Asset Relief Program (TARP) in June 2009. To date, these funds are still outstanding.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
The charges set forth in an Indictment are merely allegations. A defendant is presumed innocent until proven guilty.
Former Onebanc Vice President Indicted for Bank Fraud and Money LaunderingRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; Christopher A. Henry, Special Agent in Charge of the IRS-Criminal Investigation Nashville Field Office; and Christy Romero, Special Inspector General for TARP (SIGTARP) announced that an Indictment charging Matthew Daniel Sweet, age 41, of Timbo, Arkansas, with thirty counts of bank fraud and thirty counts of money laundering was unsealed today. Sweet made his initial appearance before United States Magistrate Judge Joe Volpe. Sweet was released on his own recognizance after his court appearance. The trial was scheduled for December 9, 2013 before United States District Judge J. Leon Holmes.
“The past few years have been financially challenging for individual citizens and institutions alike,” stated Thyer. “Most have made adjustments and found positive solutions to manage their financial health. For those who choose illegal methods, it is one of our highest priorities to prosecute where the facts and the law warrant charges.”
“IRS Criminal Investigation is committed to investigating individuals who use their corporations as personal piggy banks," said SAC Henry. With both law enforcement and financial investigation expertise, our agents are uniquely qualified to assist state and federal law agencies with these types of cases by following the money. We are pleased with the successful resolution of this investigation due to the cooperative efforts of our law enforcement partners.”
“Matthew Sweet, former Vice President and Controller at TARP recipient One Bank & Trust, allegedly abused his position at the bank to steal almost $75,000 to pay his personal credit card bills,” said Special Inspector General Romero. “TARP was designed to provide support to our nation’s banks and financial system during a time of crisis, not to provide a personal bailout for bank insiders to support their spending habits. SIGTARP and our law enforcement partners will not tolerate crime related to TARP and will aggressively investigate allegations of fraud and hold perpetrators accountable for their conduct.”
According to TARP records, One Financial Corporation, the parent company of One Bank and Trust of Little Rock, Arkansas, received $17.3 million in federal taxpayer funds through the U.S. Department of the Treasury Troubled Asset Relief Program (TARP). To date, these funds are still outstanding.
Sweet was the former Vice President and Controller (VP&C) of One Bank & Trust N.A. (Onebanc) until February of 2012. While employed with Onebanc, the indictment alleges that Sweet obtained thirty cashier’s checks from January 2009 to October 2011 by using his position as VP&C to sign cashier’s checks drawn on a Onebanc clearing account. He would then mail the cashier’s checks to his two personal credit cards to pay off the credit card bills. In total, Sweet is alleged to have stolen approximately $74,974.15. When confronted by Onebanc management, Sweet admitted his actions. He was allowed to resign and paid back the amount he had stolen with two cashier’s checks from another bank. One check for $9,662.25 was made payable to Onebanc and one for over $101,003.49 payable to Layton Stuart, former President and CEO of Onebanc.
The maximum sentence for bank fraud is not more than 30 years imprisonment, not more than a $1,000,000 fine and/or not more than five years of supervised release. The maximum sentence for money laundering is not more than 20 years imprisonment, not more than $500,000 fine and/or not more than three years of supervised release.
The case was investigated by the agents from the IRS-Criminal Investigations, SIGTARP, Federal Bureau of Investigation, Federal Reserve, and the FDIC. The case is prosecuted by First Assistant United States Attorney Pat Harris and Assistant United States Attorney Angela Jegley.
The charges set forth in an Indictment are merely allegations. A defendant is presumed innocent until proven guilty.
Conway Wealth Team International Association Business Owner Sentenced to 27 Months for Filing False Tax ReturnsRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; Christopher A. Henry, Special Agent in Charge of the IRS-Criminal Investigation Nashville Field Office; announced that on Thursday, November 7, 2013, United States District Judge J. Leon Holmes sentenced Richard C. Mathews, age 61, of Conway, to 27 months imprisonment with no supervised release. Mathews was ordered to pay $56,904.29 in restitution to the IRS. Mathews was ordered to report to the Bureau of Prisons on Monday, January 6, 2014. Mathews was released on his own recognizance after his court appearance.
Mathews was convicted by a jury on July 30, 2013, of five counts of filing false income tax returns and one count of obstructing the IRS laws. According to the Superseding Indictment filed July, 11, 2012, Mathews was self-employed operating a business soliciting members for a $99 joining fee into his system of making money by encouraging more members to join his online multi-level marketing network known as MMS and Wealth Team International (WTIA). The more people a member solicited to join MMS or WTIA, the more money the members and Mathews could make. Mathews stated on his federal tax returns that he had gross receipts of $22,201 for the five year period from 2004 to 2008, when in fact his bank records showed business deposits of $245,300.42. During the investigation, Mathews made false statements to and regarding actions taken by IRS agents, created a trust to avoid payment of taxes, and filed false returns.
The case was investigated by the agents from the IRS-Criminal Investigations. The case was prosecuted by First Assistant United States Attorney Pat Harris and Assistant United States Attorney Jamie Dempsey.
Former Arkansas Scholarship Lottery Deputy Director Sentenced to 37 Months in Prison for Wire Fraud and Money LaunderingRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Christopher A. Henry, Special Agent in Charge of the IRS-Criminal Investigation Nashville Field Office announced today that United States District Judge Susan Webber Wright sentenced Remmele Mazyck, 34, formerly of Bryant, to 37 months in prison to be followed by two years of supervised release. Mazyck was also ordered to pay $482,671.93 in restitution to the Arkansas Scholarship Lottery (ASL).
During the sentencing hearing today, Mazyck acknowledged responsibility for the theft and apologized to the ASL for his actions and the impact they had on the ASL. The ASL Director, Bishop Woosley, spoke regarding the impact of the actions taken by Mazyck on the ASL stating that, ultimately, it was scholarships for students that were affected by the scheme. Mazyck was released on his own recognizance after the hearing. He is to report to the Bureau of Prisons (BOP) on January 6, 2014, to begin serving his sentence.
“I am grateful for the cooperation of the Arkansas State Lottery and the investigative team of IRS agents and Arkansas State Police detectives for their work, which resulted in a successful prosecution,” stated Thyer. “We are committed to addressing issues of fraud and public corruption in the Eastern District of Arkansas. The success of this mission would not be possible without the law enforcement partnerships we have at all levels – federal, state and local.”
“Public officials hold positions of trust in the community, that trust is broken when officials use their positions to line their own pockets," said Christopher A. Henry, Special Agent in Charge of the IRS-Criminal Investigation Division. "No matter what your position, it is unacceptable to help yourself to other people's money and violate their trust. Individuals who engage in this type of financial fraud should know they will not go undetected and will be held accountable.”
Mazyck pled guilty July 12, 2013, to one count of wire fraud and one count of money laundering. As Deputy Director of Security for the Arkansas Scholarship Lottery, Mazyck had access to packages of promotional lottery tickets, which the lottery routinely gave away at large-scale events such as festivals, fairs, and retailer rallies. Beginning in or about December 2009 through October 2012, Mazyck took lottery tickets from the Arkansas Scholarship Lottery vendor’s warehouse for his personal use. He would assign the tickets to retailers no longer selling tickets, and then use his position as Deputy Director of Security to log into the Arkansas Scholarship Lottery’s software program to change the tickets from “Available-Virgin” to “Promotional.” This change activated the tickets and allowed Mazyck to cash any winning tickets. To hide the scheme, Mazyck would only cash winning tickets of less than $500. This allowed Mazyck to cash his winning tickets at convenience stores all over Arkansas. He then would go into the software program and change the status of all the losing tickets to “Voided by Security.”
This investigation was conducted by IRS-Criminal Investigation and the Arkansas State Police. Assistant United States Attorneys Cameron McCree and Jana Harris have prosecuted this case for the United States.
Federal Grand Jury Returned Eight Count Indictment Today on WoodringRead the Press Release
Includes charge of terrorist attack against railroad carrier
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas announced today that Jason Woodring, age 37, of Jacksonville, Arkansas, was indicted today by a federal grand jury on eight counts related to his attacks on the power grid in Central Arkansas. Woodring is currently in federal custody.
Woodring is charged in Count One with a terrorist attack against a railroad carrier for his alleged August 21, 2013, sabotage of a high voltage power line support tower. During the process of dismantling the tower, a power line fell on a nearby railroad track and was later struck by a passing train, severing the power line and causing a brief power outage in Cabot, Arkansas.
In Counts Two, Three and Six of the Indictment, Woodring is charged with the destruction of an energy facility. These charges stem from allegations that he attempted to destroy the support tower and the power lines it carried on August 21, 2013; that he set a fire on September 29, 2013, at an Extra High Voltage (EHV) switching station in Scott, Arkansas; and that he cut down two power poles, pulling down one with a stolen tractor on October 6, 2013, causing a power outage in Jacksonville, Arkansas.
Count Four of the indictment charges Woodring with use of a fire to commit a felony that is prosecutable in a United States court for the EHV station fire. Count Five charges Woodring with maliciously damaging or destroying by fire the EHV station building.
Woodring is charged with possession of an unregistered short-barrelled shotgun with an obliterated serial number in Count Seven of the Indictment. County Eight alleges that Woodring is addicted to methamphetamine and as an illegal drug user he possessed two rifles, three shotguns, and multiple rounds of ammunition.
Lastly, the Indictment includes two forfeiture allegations related to the weapons he possessed. Upon conviction of Count Seven, he would forfeit the short-barrelled shotgun and upon conviction of Count Eight Woodring would forfeit the additional weapons and ammunition.
Woodring faces up to life in prison and/or not more than five years of supervised release after prison for the terrorist attack against a railroad carrier. The charge of destruction of an energy facility carries a possible sentence of not more than 20 years in prison. Use of a fire to commit a felony has a statutory sentence of ten years consecutive to the underlying felony. Malicious use of fire carries a possible sentence of not less than five years but not more than 20 years in prison. Woodring could also face not more than a $250,000 fine for each charge against him. Counts Two through Six each carry not more than three years of supervised release.
This investigation was conducted by the FBI, Joint Terrorism Task Force, Bureau of Alcohol, Tobacco, Firearms and Explosives, Union Pacific Police, Entergy, First Electric, Lonoke County Sheriff’s Office, Cabot Police, Arkansas State Police, Conway Police Department, Little Rock Police Department and Arkansas Game and Fish Commission. Assistant United States Attorney Michael Gordon is prosecuting this case for the United States.
The charges set forth in an Indictment are merely allegations. A defendant is presumed innocent until proven guilty.
Benton Attorney Pleads Guilty to Federal Drug Conspiracy - Related ChargeRead the Press Release
Agrees to permanently surrender law license at sentencing
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas announced Dustin Dyer, of Benton, pled guilty before United States District Judge James M. Moody to the use of a cell phone to facilitate the commission of an offense of conspiracy to possess with intent to deliver methamphetamine.
Dustin Dyer was originally indicted in June 2011, in an Indictment returned against 19 individuals involved in a methamphetamine trafficking organization led by Daniel Henry of Cabot, Arkansas. Dyer was charged with one count of using a telephone to facilitate the distribution of methamphetamine by a member of the Henry conspiracy. The case against Dyer was severed from the other defendants in October, 2012 and the other defendants resolved their cases through pleas or trial. On July 11, 2013, a Third Superseding Indictment was returned against Dyer which charged Dyer with being involved in a conspiracy to distribute methamphetamine, use of a telephone to facilitate the conspiracy, and witness tampering.
Today, Dyer pled guilty to Count 18 of the Third Superseding Indictment which charged use of a telephone to facilitate the drug conspiracy. In entering his plea, Mr. Dyer admitted that on December 20, 2010, he sent a series of text messages to a client who he knew to be involved in a conspiracy to distribute methamphetamine. His intent was to assist the client in obtaining methamphetamine for distribution to him and to others. Upon acceptance by Judge Moody of Dyer’s guilty plea, the United States moved to dismiss Count 1-Conspiracy to distribute methamphetamine and Count 19-Witness tampering.
Under the plea agreement reached by the parties, Dyer agreed to permanently surrender his law license at the time of sentencing. The United States agreed to recommend a sentence of probation for Dyer. The Court is not bound to the recommended sentence. If the Court does not follow the recommended sentence, Dyer will have the option to withdraw his guilty plea.
This investigation was conducted by the Drug Enforcement Administration lead High Intensity Drug Trafficking Area Task Force consisting of local, state and federal law enforcement agencies Substantial support in the Dyer investigation was provided by the Benton Police Department. Assistant United States Attorney Anne Gardner is prosecuting this case for the United States.
Real Estate Developer Sentenced to 30 Months Imprisonment for Destination Ventures Fraud SchemeRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; announced Roger Stephen Clary, age 61, of Little Rock was sentenced by United States District Judge J. Leon Holmes to 30 months in federal prison to be followed by two years of supervised release. Special conditions were imposed on his supervised release to include: cooperation with the collection of DNA; prohibition on the possession of any firearm, ammunition, destructive device or dangerous weapon; and disclosure of financial information to probation officer upon request. The special conditions also state he may not obtain any new lines of credit. Judge Holmes ordered Clary to pay $1,595,000 in restitution to the Banc of America Leasing Corporation (BALC).Clary was ordered to report to the Bureau of Prisons by Monday, March 10, 2014.
Clary was indicted July 7, 2010, and on February 7, 2013, pled guilty to mail fraud. Clary created a company called Destination Ventures which was to purchase, custom outfit and lease buses. Clary obtained a loan from BALC to fund the purchase and outfitting of the buses. The loan was approved and entered into on May 8, 2008. The following day, Clary requested that BALC distribute a portion of the loan proceeds to purchase and outfit the buses. However, on the same day, Clary directed the vendor who was to outfit the buses to redistribute the funds once the vendor received them. The vendor complied with the directives from Clary. Consequently, $1,595,000 of the loan proceeds were paid to companies in which Clary had a financial interest but which had no involvement in the purchase, custom outfitting, or leasing of the buses as intended by the loan agreement. The mail fraud count charges Clary with later falsely certifying to BALC that the buses had been custom outfitted.
This investigation was conducted by the Little Rock Field Office of the Federal Bureau of Investigation. Assistant United States Attorney Angela Jegley prosecuted this case for the United States.
Former Little Rock Police Department Officer Sentenced to 104 Months in Federal Prison on Federal Drug ChargeRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; Randall C. Coleman, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI); and Stuart Thomas, Chief of the Little Rock Police Department, announced Mark Anthony Jones, age 46 of Little Rock was sentenced by United States District Judge James M. Moody to 104 months in federal prison to be followed by four years of supervised release. Jones was immediately taken into United States Marshal custody following the sentencing.
“As I said when Jones was arrested, we owe it to this community and, more importantly, to the upstanding individuals who wear the badge of the LRPD to hold those who break the law accountable for their actions,” stated Thyer. “This case was carefully investigated and the facts speak for themselves. Jones’ choice to sell his career for cash is disheartening. My hope is, this sentence will serve notice to all other law enforcement officers that disregard of the law will result in prosecution. No one is above the law. To those who valiantly serve with integrity, I applaud you and thank you for your service.”
“The sentence imposed today sends a strong message to anyone in law enforcement who would betray his or her oath to protect and serve the public," stated Acting FBI Special Agent in Charge Howard S. Marshall. "The vast majority of us who respect the badges we wear and who are committed to public service will band together to aggressively investigate these egregious, criminal activities. In many of these investigations, they start with a tip from a concerned citizen. We are grateful for those who come forward to report corruption to us and we continue to encourage people to do so.”
Chief Thomas added, “I hope the message is clear that allegations of corruption will be diligently investigated and prosecuted. The men and women of this Department who participated in this difficult and demanding investigation demonstrated professionalism, integrity, and confidentiality to the highest degree. This Department is appreciative our partnership with the United States Attorney’s Office and the Little Rock Office of the FBI which, without hesitation, provided the resources and expertise necessary to fully investigate this matter and ultimately bring it to a successful conclusion today.”
Jones was arrested May 24, 2013 and pled guilty June 28, 2013, to one count of attempting to aid and abet the possession with intent to distribute approximately 1,000 pounds of marijuana.
The facts in the Plea Agreement state that Jones had been a policeman with the Little Rock Police Department since 1988. Early in 2012, Jones traveled with a Confidential Informant (CI) to Los Angeles, California to meet the informant=s purported supplier of marijuana. During dinner, the supplier (who was actually an undercover FBI agent) and Jones engaged in recorded conversation about marijuana loads being brought into Little Rock. After returning from California, the CI contacted Jones regarding a truckload of 1,000 pounds of marijuana coming into Little Rock. Jones was asked to and agreed to provide security for this load. He recruited his brother, another LRPD officer to be the 2nd escort to protect against an arrest by other law enforcement.
On March 22, 2012, Jones and his brother provided the protection while driving marked patrol cars. The delivery was divided in two vans of a purported quantity of approximately 500 pounds of marijuana in each van. The FBI set-up surveillance of the activities including aerial surveillance. The facts state that during the time Jones and his brother provided the escort, they “overheard on their police radio a call for shots fired near their location. They were the officers closest to the shooting, but did not respond because they were following the vans.” Jones didn’t respond to the call until he had completed the escort of the vans – approximately one hour later.
Jones was audio and video recorded by the FBI later that day meeting with the CI who paid him $10,000 in cash for the escort - $5,000 for Jones and $5,000 for his brother.
On July 15, 2013, Jones’ brother, Randall Tremayne Robinson, was found guilty of Count 3 of the Superseding Indictment for distribution of marijuana in August of 2009. The jury hung on all other counts. A second Superseding Indictment was filed August 7, 2013. The trial has been set for March 17, 2014 before United States District Judge James L. Moody. An indictment contains only allegations. All defendants are presumed innocent unless and until proven guilty.
This investigation was conducted by the Little Rock Field Office of the Federal Bureau of Investigation in cooperation with, and with substantial support from, the Little Rock Police Department. Assistant United States Attorneys Pat Harris and Anne Gardner have prosecuted this case for the United States.
Jacksonville Man Arrested for Recent Attacks on Power GridRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; and James Hendricks, Acting Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI); announced today that Jason Woodring, age 37, of Jacksonville, Arkansas, was arrested on a Criminal Complaint charging him with destruction of an energy facility.
The Affidavit filed with the Complaint alleges that Woodring is responsible for multiple acts of sabotage to the power grid in Central Arkansas. Yesterday, Lonoke County Sheriff’s Office deputies received multiple calls regarding an explosion on John Shelton Road in Jacksonville, Arkansas. Deputies and Entergy employees determined the explosion occurred under power lines near Woodring’s residence. Agents from the FBI and Joint Terrorism Task Force called to the scene, observed a type of blue hose similar to evidence found at another power grid sabotage scene. Interviews were conducted and information from these interviews was connected to previous power grid attacks resulting in the arrest of Woodring today. It is anticipated that an initial appearance in federal court will be scheduled for Tuesday.
“The citizens of Central Arkansas can rest a bit easier today with the arrest of Jason Woodring,” stated Thyer. “The power grid attacks had the potential to put many lives at risk. When we depend on electrical power not only for comfort and convenience, but also for safety, security and life-sustaining equipment, not knowing where the next attack would occur held the public hostage to an unknown attacker. I am extremely grateful to all the investigators from the FBI, Joint Terrorism Task Force, Bureau of Alcohol, Tobacco, Firearms and Explosives, Union Pacific Police, Entergy, First Electric, Lonoke County Sheriff’s Office, Cabot Police, Arkansas State Police, Conway Police Department, Little Rock Police Department and Arkansas Game and Fish Commission for their commitment to this investigation these past few months.”
"I am so proud of the collective team effort of all those who worked so diligently in investigating the attacks on our power grid," stated James Hendricks, Acting SAC for the FBI's Little Rock Office. "This dedicated team worked tirelessly to resolve this matter before anyone was hurt, for which we should all be especially thankful."
The power grid investigation began on August 21, 2013, with the sabotage of a high voltage power line support tower. Investigation of the 100-foot tower revealed that a shackle which holds a 500,000 volt power line was severed. Additionally, over 100 bolts securing the support tower had been removed leaving only five bolts to hold the tower and the power lines it carried in place. Due to the cut shackle, a power line fell on a nearby railroad track and was later struck by a passing train severing the power line causing a brief power outage in Cabot, Arkansas. Entergy was able to reroute power to mitigate the affect this outage had on its customers. Blue hose similar to that found at and near Woodring’s residence was found around this sabotage site.
A second attack on the power grid occurred September 29, 2013, at an Entergy Extremely High Voltage (EHV) switching station in Scott, Arkansas. According to the Affidavit, local authorities responding to notification that alarms were indicating multiple problems at the station found the EHV station on fire. A message in black marker at the entrance to the station read, “You should have expected U.S.” Entergy representatives estimate the damage to the switching station to be over two million dollars.
On October 6, 2013, a third incident was reported by First Electric Cooperative (FEC) which experienced a power outage in Jacksonville, Arkansas. This outage caused the loss of power to approximately 9,000 customers. An investigation by FEC and the FBI revealed two power poles had been cut and one pulled down causing the downing of a 115,000-volt transmission line. The tractor allegedly used to pull down the pole was stolen from a location directly across the street from Jason Woodring’s residence.
This investigation was conducted by the FBI, Joint Terrorism Task Force, Bureau of Alcohol, Tobacco, Firearms and Explosives, Union Pacific Police, Entergy, First Electric, Lonoke County Sheriff’s Office, Cabot Police, Arkansas State Police, Conway Police Department, Little Rock Police Department and Arkansas Game and Fish Commission. Assistant United States Attorney Michael Gordon is prosecuting this case for the United States.
The charges set forth in a Complaint are merely allegations. A federal Grand Jury will decide whether to indict on these charges. If indicted and convicted of this charge, Woodring faces a possible sentence of not more than 20 years imprisonment and/or a $250,000 fine followed by three years supervised release. Woodring is presumed innocent until proven guilty.
U.S. Attorney Announces Hiring Grants for Jacksonville and Jonesboro Police DepartmentsRead the Press Release
LITTLE ROCK – U.S. Attorney Christopher R. Thyer, in conjunction with the U.S. Department of Justice Office of Community Oriented Policing Services (COPS), announced today funding awards for the Eastern District of Arkansas.
The amount awarded to grantees include: $118,975 to the Jacksonville Police Department and $500,000 to the Jonesboro Police Department.
The COPS Hiring Program offers grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides the salary and benefits for officer and deputy hires for three years. Grantees for the 2013 hiring program were selected based on their fiscal needs, local crime rates, and their community policing plans.
“In these challenging economic times, it is vital to our communities to keep our police presence strong,” stated Thyer. “These DOJ grants provide much needed funding to the Jacksonville and Jonesboro Police Departments to do just that. Employing new officers and/or keeping them on the job helps these departments better serve their citizens. Additionally, my office depends on our partnership with local law enforcement agencies to help bring criminals to justice. It’s impossible to put a dollar value on the peace and safety provided to each of us every day by the commitment of these men and women. I commend Jacksonville and Jonesboro Police Departments for their dedication and congratulate them on their grant awards.”
Overall the COPS Office funded awards to 263 cities and counties, aimed at creating 937 law enforcement positions. More than $125 million will be awarded nationally
“The COPS Office is pleased to assist local law enforcement agencies throughout the country address their most critical public safety issues,” said Joshua Ederheimer, Acting Director of the COPS Office. “Funding from this year’s program will allow many cities and counties to apply new sworn personnel to issues related to violent crime, property crime, and school safety.”
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has awarded over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 125,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
For the entire list of grantees and additional information about the 2013 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.
Blytheville Drug Dealer Appears in Court for Second Time in Six Months on Federal Drug ChargesRead the Press Release
LITTLE ROCK - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas announced today that Ricky Thompson, age 33, of Blytheville, made his initial appearance before United States Magistrate Judge Joe J. Volpe on a Criminal Complaint charging him with distribution of a controlled substance and conspiracy to distribute a controlled substance.
Thompson was indicted on March 13, 2013, along with 18 others from Blytheville in a High Intensity Trafficking Suppression (H.I.T.S.) Operation. In that Indictment Thompson was charged with conspiracy to possess with intent to distribute cocaine base and four counts of distribution of cocaine base. According to the arrest affidavit filed with the Criminal Complaint on September 20, 2013, Thompson was on pre-trial release in the custody of his mother pending those charges. Following a lead that Thompson was continuing to distribute narcotics, the Bureau of Alcohol, Tobacco, Firearms and Explosives assigned an agent to confirm this information. Several controlled purchases of methamphetamine were arranged through a confidential informant from September 4, 2013 to September 20, 2013. Subsequently an arrest warrant was issued last Friday, September 20,2013. Thompson surrendered to authorities on Thursday, September 26, 2013. Thompson remains in custody after his appearance today.
This investigation was conducted by the Bureau of Alcohol, Tobacco, and Firearms – Little Rock Field Office. Assistant United States Attorney Cameron McCree is prosecuting this case for the United States.
The charges set forth in a Complaint are merely allegations. A federal Grand Jury will decide whether to indict on these charges. The defendant is presumed innocent until proven guilty.
Former President of Searcy Closing Company Sentenced to 24 Months in Prison for Mail FraudRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas and Randall C. Coleman, Special Agent in Charge of the Federal Bureau of Investigation – Little Rock Field Office announced today that United States District Judge James M. Moody sentenced Marci Ann Ingram, age 41, of Searcy, to 24 months imprisonment followed by three years of supervised release for mail fraud related to Landmark Closing Company, Inc.
Thyer said, “When someone has defrauded the citizens of their community as blatantly as Ms. Ingram did, justice will reveal the truth and restore integrity. In this case, the request for an investigation came to the Arkansas Insurance Department whose investigators uncovered the ugly truth and brought it to the FBI for further investigation. As a result, Ms. Ingram is now facing the seriousness of her lack of veracity in her business practices.”
“Ms. Ingram betrayed those whose escrow accounts she held, and as a result, jeopardized their home ownership,” stated Coleman. “I appreciate the collective work of our agents, the Arkansas Insurance Department, and the United States Attorney who brought Ms. Ingram to justice for her actions.”
Ingram was charged by an Information and pled guilty to one count of mail fraud on April 12, 2013. The charges involve activities by Ingram as President and principal shareholder of Landmark Closing Company, Inc. (LCC) from 2006 through mid-2009.
During an investigation by the Arkansas Insurance Department – Criminal Investigation Division, evidence indicated that Ingram had been diverting money from an escrow account to other working accounts of LCC for personal use. As a result, the FBI was contacted to lead a federal investigation which resulted in the charge of mail fraud. According to the Information, “Ingram used some of these diverted escrow funds for her own personal use to pay for trips, Arkansas Razorback tickets, Netflix, iTunes, online gambling/gaming, clothing, makeup, country club dues, Facebook certificates and other non-business related expenditures.” In addition, Ingram used some of the escrow money to repay a personal loan from her parents. Checks issued to lienholders for legitimate payments from the escrow account were returned by the bank as insufficient due to a lack of funds. This caused Old Republic National Title Insurance Company, the company who insured the property titles for LCC, to pay $418,828.68 in claims and losses to lienholders.
Ingram pled guilty to a specific mail fraud charge of mailing an escrow check to Washington Mutual Payoff Unit, Jacksonville, Florida in the amount of $163,157.91 in June of 2009.
An Order for restitution will be issued separately at a later date after it is determined how much Ingram has repaid and how much restitution is still owed.
This investigation was conducted by the Federal Bureau of Investigation and the Arkansas Insurance Department-Criminal Investigation Division. Assistant United States Attorney Tricia Harris prosecuted this case for the United States
Batesville Man Under Federal Indictment for Setting Fire to State Probation OfficeRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; and Grover Crossland, Resident Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) - Little Rock Field Office; announced that Douglas McArthur Adams, III, age 51, of Batesville, was indicted today by a federal grand jury on one count of malicious use of fire for attempting to destroy the Arkansas Department of Community Correction building in Batesville (DCC-Batesville).
"This senseless act now has Adams facing federal charges," stated Thyer. "Thankfully, the local law enforcement and fire department were cognizant of preservation of the crime scene in their response to the fire. Together with the Arkansas State Police and ATF investigators, the evidence was presented to my office resulting in our indictment today. Law enforcement officers, including probation officers, put their lives at risk every day to keep our streets safe. It is imperative that they know the full weight of the law is here to support them in their mission."
According to a search warrant issued in this case, Adams had been on release from state charges for possession of methamphetamine and violation of a protective order with a requirement that he report for drug testing. On June 6, 2013, he reported for a screening and presumptively tested positive for meth. A record was made of this screening and the sample was preserved for further analysis.
On June 10, 2013, at about 1:55 a.m., a motion detector in the DCC-Batesville office was triggered. Upon arrival at the DCC-Batesville office, Batesville Police Officers saw that the rear entrance glass door was broken and the building was on fire. The Batesville Fire Department was called and responded to extinguish the fire.
Evidence gathered at the scene indicated the fire appeared to have started in a room adjacent to the refrigerator used to store drug-testing urine samples. Investigators reported an accelerant such as gasoline had been poured on the floor. Surveillance video showed a white Ford truck with features similar to one Adams drives, slowly driving by the DCC-Batesville office at approximately 1:54 a.m. the morning of the fire.
On June 11, 2013, Adams was arrested on a revocation bond for testing positive for meth. Evidence collected at the time of Adams' arrest and additional evidence analyzed by the by the Arkansas State Crime Lab tied Adams to the crime scene resulting in this federal charge of arson. Adams remains in custody. The date for his initial appearance hasn't yet been set by the court.
If convicted, Adams faces a possible sentence of not more than 20 years incarceration and/or $250,000 fine with not more than 3 years of supervised release.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives in conjunction with the Arkansas State Police, Independence County Sheriff's Office, Batesville Police Department, Batesville Fire Department. The case is being prosecuted by Assistant United States Attorney Mike Gordon.
An indictment contains only allegations. The defendant is presumed innocent unless and until proven guilty.
Former Employee Pleads Guilty to Stealing from Arkansas Sports Hall of FameRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; and Brian T. Marr, Special Agent in Charge of the Little Rock Field Office, United States Secret Service; announced that Jennifer Smith, 47, of Little Rock, a former employee at the Arkansas Sports Hall of Fame, pleaded guilty today before United States District Judge Brian Miller to stealing nearly $120,000 from the Hall of Fame.
“The Arkansas Sports Hall of Fame is an institution where people are honored for their contributions to this state,” stated Thyer. “It is a shame that someone would steal from this organization while seemingly supporting it as an employee. Thankfully, an audit and great investigative work have exposed the perpetrator of this theft and brought her to justice.”
Marr said, "Secret Service Investigations are committed to aggressively identifying those associated with these types of financially motivated crimes. These crimes create economic havoc on the businesses located in our communities. Working with the North Little Rock Police Department and United States Attorney’s Office we ensured that this defendant, was held responsible and accountable for her actions."
Smith pleaded guilty to a one-count Information charging her with access device fraud. Smith used Arkansas Sports Hall of Fame credit cards from 2007 to 2012 to make $118,296.98 in unauthorized personal purchases. The purchases included charges to an athletic club, restaurants, women’s and children’s clothing stores, and charges for out-of-town trips.
Smith’s scheme was discovered in September of 2012 following an audit that was triggered when the Sports Hall of Fame’s bank statement showed a payment to the Little Rock Athletic Club for personal dues in the name of Jennifer Smith.
Access device fraud carries a maximum sentence of not more than 15 years imprisonment and/or a fine of not more than $250,000 and not more than three years supervised release. Sentencing will be set at a later date by the Court.
The investigation was conducted by the Secret Service, with assistance from the North Little Rock Police Department. The case was prosecuted by Assistant United States Attorney Chris Givens.
Cabot Man Has Initial Appearance in Federal Court on Child Pornography ChargesRead the Press Release
Little Rock - Christopher R. Thyer, Attorney for the Eastern District of Arkansas and Randall C. Coleman, Special Agent in Charge of the Federal Bureau of Investigation - Little Rock Field Office announced that Matthew Hiner, age 25, of Cabot, made his initial appearance today in federal court in front of United States Magistrate Judge H. David Young on allegations of possession of child pornography, distribution of child pornography, and production of child pornography. Hiner was arrested on a criminal Complaint, Friday, August 23, 2013. He continues to be detained following his initial appearance today.
“This office is deeply committed to the prosecution of those who destroy the innocence of children for their own aberrant gratification,” stated Thyer. “We are fortunate to have well-trained investigators bring the evidence necessary to make our cases. This evidence allows our dedicated team of Assistant United States Attorneys to prosecute these difficult cases and imprison those who threaten the safety and security of our children.”
"Our Denied Innocence Task Force is a coalition of federal, state, and local officers who are dedicated to stopping those who prey on children," stated Coleman. "We will continue to work together to proactively investigate child sexual predators including producers and distributors of child pornography."
The criminal Complaint alleges on August 22, 2013, an Undercover (UC) Officer from the FBI/MPD 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 username “daddylooking4fam”. Username daddylooking4fam posted he was single, 25 years old, active bi, and living in the United States.”
The UC engaged in a private chat conversation with daddylooking4fam. Daddylooking4fam told the UC 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 UC to chat on a private Yahoo! chat. During the subsequent chat with the UC, the user utilized the screen name “Matthew Hiner.” Hiner sent the UC photographs of himself engaging in sexually explicit conduct with a minor.
Agents with the FBI Office in Little Rock, Arkansas, determined Matthew Hiner’s identity. Hiner was located and arrested on the criminal Complaint.
The investigation was conducted by the Federal Bureau of Investigation with assistance from the Pulaski County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Kristin Bryant.
The charges set forth in a Complaint are merely allegations. A federal Grand Jury will decide whether to indict on these charges. The defendant is presumed innocent until proven guilty.
Former Faulkner County Sheriff Candidate Sentenced for 2012 Election ScamRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that United States District Judge D. Price Marshall, Jr. sentenced Harold Allen Smith, 47, of Greenbriar, to one month in federal prison to be followed by one year of supervised release with the special condition that the first month of supervised release must be served in a halfway house. He was ordered to report to the Bureau of Prisons in 30 days.
Smith was charged by an Information and pled guilty to one count of transferring a false birth certificate via the United States mail on April 19, 2013. The charges involve activities by Smith in the Spring of 2012 when he was a candidate in the Republican primary for Sheriff of Faulkner County.
In the Spring of 2012, Harold Smith was one of the candidates for Sheriff of Faulkner County in the Republican primary. During February and March, 2012, Smith had meetings with people to discuss the election and how to prevent another Republican candidate, Andy Shock, from winning the primary. Some of the people who met with Smith had suggestions including that Smith drop out of the race to run an anti-Shock campaign, and that it would be funny if a birth certificate surfaced showing that Shock was the father of an illegitimate black child. As a result, Smith, with the help of another person, created false Texas birth certificates showing that Shock was the father of an illegitimate black child.
On March 28, 2012, Smith and another person drove to Hooks, Texas where Smith mailed approximately 12 envelopes containing a note and a false Texas birth certificate to residents in Faulkner County, Arkansas, who it was believed would vote in the Republican primary.
In spite of the efforts of Smith, Andy Shock won the Republican primary and in November, 2012, won the general election and is currently the Sheriff of Faulkner County.
This investigation was conducted by United States Postal Inspection Service. First Assistant U.S. Attorney Patrick Harris and AUSA Cameron McCree prosecuted this case for the United States.
Two Indicted on Federal Child Enticement ChargesRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced that the Indictments of Kenneth Wayne Thompson, age 21, of Bradford, and Benjamin Cade Vardell, age 19, of Jonesboro were unsealed yesterday after they turned themselves in to the United States Marshal and made their initial appearance before United States Magistrate Judge H. David Young. Thompson and Vardell were each indicted by a federal grand jury August 7, 2013, on one count of enticement of a minor to engage in criminal sexual conduct. Each indictment also includes a forfeiture allegation for their cell phones used in the crime.
On December 21, 2012, Jonesboro Police Department detectives responded to a runaway juvenile call. During the course of that investigation, the detectives were given the juvenile's phone by consent of the mother. Several of the individuals who had contacted the juvenile were interviewed based on the messages they sent to the juvenile. They were subsequently arrested by local police departments resulting in these charges.
If convicted, they face a statutory sentence of not less than 10 to not more than life incarceration and/or $250,000 fine with not less than 5 years up to a lifetime of supervised release. Thompson and Vardell's trials are set for September 16, 2013.
This case was investigated by the Jonesboro Police Department and the United States Secret Service Department. The case is being prosecuted by Assistant United States Attorney Marsha Clevenger.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit
Crew Linked to Ten Armed Robberies Indicted on Federal ChargesRead the Press Release
Little Rock– Christopher R. Thyer, Attorney for the Eastern District of Arkansas; Grover Crossland, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and Chief Mike Davis of the North Little Rock Police Department; announced the arrest and return of two federal indictments charging four (4) men with the armed robbery of seven local fast-food restaurants and one store, as well as the attempted armed robbery of one local fast-food restaurant and a bank. The robberies occurred between January 2013 and June 2013 in North Little Rock, Little Rock, Sherwood, and Cabot. The establishments targeted in the robberies include five (5) different Sonic Drive-Ins, two (2) Subway restaurants, a Dollar General store, Yogurt Mountain, and the Bank of England.
“The citizens of Arkansas deserve to enjoy a bite to eat without the fear of thugs with guns threatening their meal,” stated Thyer. “This is the second string of robberies we have indicted in two months. As in the case we indicted in June, it is through the partnership with law enforcement at the local level that these men are facing these charges. Arkansans are safer today and really, every day, due to the commitment of law enforcement to work together.”
SAC Crossland said, “This joint investigation between NLRPD and ATF illustrates the impact on reducing violent crime when agencies combine and coordinate their skills and resources. This investigation is an example of excellent investigative work, a job well done by the investigators.”
“With the arrest of these individuals robberies will go down,” stated Chief Davis. “The number may be small but at least one or two individuals who knew these subjects or heard about their arrest will decide it’s not worth it. The price is too high. Because of our relationship with the ATF through our Task Force Officer Michael Gibbons, we have been able to make several arrests -- arrests that result in convictions with federal sentences which don’t typically end with probation, quite the opposite, they end with substantial prison sentences with no chance of parole. These arrests are just a couple of the many that have occurred over this past year as a result of our relationship with the ATF. Individuals who have committed many of our violent and property crimes have received large prison sentences because of their decision to involve a firearm in their crime.”
The first indictment charges Darius Antonio Malvin, 22, of Little Rock; Marquis D. Robinson, 23, of Little Rock, and Justin Lamar Williams, 24, of England, Arkansas, in twenty-one-counts related to the crime spree. The counts include one (1) count of Conspiracy to Interfere with Commerce by Robbery, eight (8) counts of Interference with Commerce by Robbery, one (1) count of Attempted Interference with Commerce by Robbery, and nine (9) counts of Brandishing a Firearm during a Crime of Violence. Malvin and Robinson are charged in all of the armed robberies; Williams is charged along Malvin and Robinson in four of the armed robberies. Robinson is charged separately in two different counts with being a Felon in Possession of a Firearm and with being a Felon in Possession of Ammunition.
If convicted of Conspiracy to Interfere with Commerce by Robbery or Interference with Commerce by Robbery, each defendant will face a sentence of not more than 20 years imprisonment and/or a fine of not more than $250,000, followed by not more than three years of supervised release. If convicted of Brandishing a Firearm during the robberies, federal law requires a sentence of not less than seven (7) years imprisonment to be served consecutive to any sentence imposed for the underlying robbery.
The second indictment charges Malvin, Robinson, and Desmond L. Jones, 27 of Scott, Arkansas, with the attempted robbery of the Bank of England, located at 11044 Highway 165, in North Little Rock, on May 24, 2013. Malvin is also charged with brandishing a firearm during that attempted robbery. Jones is also charged with being a felon in possession of ammunition on the same date.
If convicted of attempted bank robbery, the men will face a sentence of not more than 20 years imprisonment and/or a fine of not more than $250,000, followed by not more than three years of supervised release.
A conviction for being a felon in possession of a firearm or ammunition carries a possible punishment of not more than ten years imprisonment and/or a fine of not more than $250,000, followed by not more than three years of supervised release.
The investigation was conducted by the ATF and the North Little Rock Police Department with assistance from the Little Rock, Sherwood, and Cabot Police Departments. The indictment is being prosecuted by Assistant United States Attorney Michael Gordon.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
DEFENDANTS/CHARGES
Darius Antonio Malvin, 22, Little Rock: Conspiracy to Interfere with Commerce by Robbery, Interference with Commerce by Robbery (8 counts), Attempted Interference with Commerce by Robbery (1 Count), Attempted Bank Robbery (1), Brandishing a Firearm during a Crime of Violence (10 Counts).
Marquis D. Robinson, 23, Little Rock: Conspiracy to Interfere with Commerce by Robbery, Interference with Commerce by Robbery (8 counts), Attempted Interference with Commerce by Robbery (1 Count), Attempted Bank Robbery (1), Brandishing a Firearm during a Crime of Violence (9 Counts), Felon in Possession of a Firearm (1 Count), Felon in Possession of Ammunition (1 Count).
Justin Lamar Williams, 24, England: Conspiracy to Interfere with Commerce by Robbery, Interference with Commerce by Robbery (3 counts), Attempted Interference with Commerce by Robbery (1 Count), Brandishing a Firearm during a Crime of Violence (4 Counts)
Desmond L. Jones, 27, Scott: Attempted Bank Robbery (1), Felon in Possession of Ammunition (1 Count).
STATUTORY SENTENCES
Conspiracy to Interfere with Commerce by Robbery is punishable by not more than 20 years incarceration in the Bureau of Prisons with a possible fine of up to $250,000, and not more than 3 years supervised release.
Interference with Commerce by Robbery (or an Attempt) is punishable by not more than 20 years incarceration in the Bureau of Prisons with a possible fine of up to $250,000, and not more than 3 years supervised release.
Attempted Bank Robbery is punishable by not more than 20 years incarceration in the Bureau of
Prisons with a possible fine of up to $250,000, and not more than 3 years supervised release.
Brandishing a Firearm during a Crime of Violence is punishable by not less than 7 years, but not more than life, incarceration in the Bureau of Prisons (consecutive to any other sentence imposed) with a possible fine of up to $250,000, and not more than 5 years supervised release .Felon in Possession of a Firearm or Ammunition is punishable by not more than 10 years incarceration in the Bureau of Prisons with a possible fine of up to $250,000, and not more than 3 years supervised release.
Three Indicted on Drug Charges Related to Theft of Prescription Drugs at Benton PharmacyRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, William J. Bryant, Assistant Special Agent in Charge of the Drug Enforcement Administration's Little Rock District Office (DEA), and Kirk R. Lane, Chief of Police for the Benton Police Department (BPD), announced that a two-count Indictment was issued today charging William Franklin Thompson, age 34, of Traskwood; James Jubilee Owens, age 38, of Bismarck; and Joseph Louis Thurlow, age 23, of Hot Springs with drug crimes related to the theft of more than 25,000 pills from a Benton pharmacy in January 2013.
Count 1 charges Thompson, Owens, and Thurlow with conspiracy to possess with intent to distribute and to distribute Schedule II controlled substances, including Oxycodone, Oxymorphone, Morphine, Hydromorphone, Meperidine, Methadone, Methylphenadate, Dextroamphetamine, Tapentadol, and Lisdexamphetamine dimesylate. Count 2 charges the same men with aiding and abetting one another to possess Oxycodone with intent to distribute.
"Although they may have initially thought they were able to pull off this theft, due to quick action by the Benton Police Department this robbery was ultimately unsuccessful," said Thyer. "These men will now be facing up to twenty years in prison."
Bryant stated, "Prescription drug abuse is the fastest growing illicit drug problem our state faces. It plagues our streets with violence and touches every level of society. The Benton Police Department did an excellent job investigating this case, and we appreciate our partnership with them so that we can continue to address the prescription drug problem on a federal level."
Chief Lane added, "This case was resolved by great investigative work and law enforcement partnerships that in turn, will keep our citizens safe. We are proud to be a part of the team."
The charges result from a burglary on January 30, 2013 at the Westside Pharmacy in Benton, Arkansas which was investigated by the BPD. According to BPD reports, Thurlow gained entry to the pharmacy through an adjacent business which shared ceiling space with the pharmacy. After getting inside the business, Thurlow gained access to the pharmacy above the ceiling and by breaking a hole in the sheet rock firewall separating the two businesses. He then maneuvered above the drop ceiling along the roof rafters until coming upon the Schedule II closet in the pharmacy. A motion detector linked to the pharmacy's alarm system was disabled by Thurlow with assistance via walkie-talkie from Owens. Thurlow then climbed into the closet from the ceiling undetected. More than 25,000 pills were placed into a large duffle bag, and Thurlow climbed back through the ceiling with the pills and returned to the point of entry through the adjacent business. Both Owens and Thompson were stationed in separate vehicles outside the pharmacy with walkie-talkies.
According to BPD reports, after the burglary, the drugs were taken to a Hot Springs home where they were repackaged for distribution by the defendants. The pills were then relocated to Owens' residence in Bismarck where they were stored, and were later seized by Benton Police detectives. Detectives also discovered burned debris in a firepit behind Owens' residence consistent with the original packaging for the drugs.
Both counts of the Indictment carry punishment of not more than 20 years imprisonment with a possible fine of up to $1,000,000, and at least 3 years of supervised release.
Thompson, Owens, and Thurlow are currently not in custody. They will be summoned to appear in federal court before a United States Magistrate Judge later this month.
The investigation was conducted by the Drug Enforcement Administration Little Rock Office and the Benton Police Department. It is being prosecuted by Assistant United States Attorneys Tricia Harris and Jamie Dempsey.
An indictment contains only allegations. The defendant is presumed innocent unless and until proven guilty.
Former Arkansas State Police Lieutenant Indicted by Federal Grand Jury on Drug Distribution ChargesRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Randall C. Coleman, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), announced today that a federal grand jury returned an indictment charging former Arkansas State Police Lieutenant Sedrick L. Reed, age 43, and Lamont M. Johnson, age 45, with federal narcotics and firearms charges. The charges stem from an investigation by the Federal Bureau of Investigation’s ArkTrust Public Corruption Task Force and Little Rock Police Department with the full cooperation of the Arkansas State Police. The investigation was also referred to as an Organized Crime and Drug Enforcement Task Force (OCDETF) operation “Diverted Justice.”
The charges in the indictment and potential penalties are as follows:
Count One Reed & Johnson. Drug Conspiracy, 21 U.S.C. § 846. NLT 10 years and up to life imprisonment; NLT 5 years and up to life supervised release; Up to a $10 million fine.
Count Two Reed & Johnson. Cocaine Distribution, 21 U.S.C. § 841(a)(1). Up to 20 years imprisonment; NLT 3 years and up to life supervised release; Up to a $1 million fine.
Count Three Reed. Possession with Intent to Distribute Cocaine, 21 U.S.C. § 841(a)(1). NLT 5 years and up to 40 years imprisonment; NLT 4 years and up to life supervised release; Up to a $5 million fine.
Count Four Reed. Possession with Intent to Distribute Heroin, 21 U.S.C. § 841(a)(1). NLT 5 years and up to 40 years imprisonment; NLT 4 years and up to life supervised release; Up to a $5 million fine.
Count Five Johnson. Felon in Possession of a Firearm, 18 U.S.C. § 922(g)(1). NMT 10 years imprisonment; NMT 3 years supervised release; Up to a $250,000 fine.
Count Six Johnson. Possession of a Defaced Firearm, 18 U.S.C. 922(k). NMT 5 years imprisonment; NMT 3 years supervised release; Up to a $250,000 fine.
Count Seven Johnson. Possession of a Firearm in Furtherance of a Drug Trafficking Crime, 18 U.S.C. § 924(c). NLT 5 years and up to life imprisonment; NMT 5 years supervised release; Up to a $250,000 fine.
Count Eight Reed. Possession of a Firearm in Furtherance of a Drug Trafficking Crime, 18 U.S.C. § 924(c). NLT 5 years and up to life imprisonment; NMT 5 years supervised release; Up to a $250,000 fine.
The indictment also contains four forfeiture allegations related to firearms and assets, including $30,073 in U.S. Currency seized from Reed’s person and at Reed’s residence, and $57,595 in U.S. Currency seized at Johnson’s residence.
Reed and Johnson will appear before United States Magistrate Judge H. David Young for Plea and Arraignment later this month, at which time a trial date will be set. Reed and Johnson previously appeared before United States Magistrate Judge J. Thomas Ray for an Initial Appearance on a criminal complaint charging them with the conduct underlying Count Two.
On July 23, 2013, following a hearing, Judge Ray entered an order of detention pending trial for Reed, finding by clear and convincing evidence that Reed presents a danger to the community and by a preponderance of the evidence that Reed presents a risk of flight. Also on July 23, 2013, following the United States’ presentation of evidence in support of detention, Judge Ray entered an order of detention without prejudice to Johnson presenting evidence at a later date.
The investigation was conducted by the FBI’s ArkTrust Public Corruption Task Force with assistance from the Little Rock Police Department. It is being prosecuted by Assistant United States Attorneys Julie Peters and Chris Givens.
An indictment contains only allegations. The defendants are presumed innocent unless and until proven guilty.
Bryant Man Indicted on Extortion ChargesRead the Press Release
Threatened Benton Police Department and Boston FBI
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, along with Randall C. Coleman, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), and Chief Kirk Lane of the Benton Police Department, announced today a federal grand jury returned an indictment charging Brandon Goodin, age 21, of Bryant, Arkansas, with two counts of attempted extortion in violation of 18 U.S.C. § 1951.
Count One of the indictment alleges that on April 11, 2013, Goodin sent an email to the Benton Police Department threatening “to kill one person at random every following day” unless the Benton Police Department paid Goodin $7,000,000 in cash. Count Two of the indictment alleges that on April 16, 2013, Goodin sent an email to the Boston Division of the Federal Bureau of Investigation threatening “we have a lot of these bombs in place across the nation and we can blow them with little effort” unless the Federal Bureau of Investigation paid Goodin $400,000,000 in cash.
The penalty for a violation of 18 U.S.C. § 1951 is up to 20 years imprisonment, up to 3 years supervised release, and up to a $250,000 fine.
Goodin is in custody and will appear before United States Magistrate Judge H. David Young for Plea and Arraignment later this month, at which time a trial date will be set.
The investigation was conducted by the Federal Bureau of Investigation and the Benton Police Department. It is being prosecuted by Assistant United States Attorney Julie Peters.
An indictment contains only allegations. The defendant is presumed innocent unless and until proven guilty.
Meth Dealer Arrested for Second TimeRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas and William J. Bryant, Assistant Special Agent in Charge of the Little Rock District Office of the Drug Enforcement Administration (DEA) announced that Chester Green, age 32, was arrested yesterday and charged today on a federal Complaint with distribution of methamphetamine.
The arrest was made after a confidential informant made a methamphetamine purchase under the direction of law enforcement. The Arkansas State Police is conducting an investigation regarding shots fired during the arrest. No one was injured in the incident. This is the second arrest and federal drug distribution charge for Green in the past three months. A Motion to Revoke his bond was filed along with the Complaint. Green is in custody. His initial appearance on this charge is expected to be early next week.
Chester Green was out on bond from an arrest on May 21, 2013. He was arrested with five others on a 22-count indictment charging ten defendants from Central Arkansas and Texas with multiple drug offenses. Approximately 34.5 kilograms of methamphetamine, 22 pounds of marijuana, and $211,000 in U.S. currency were seized in Operation "SoLow". In addition, the Lonoke County Sheriff's Department uncovered the first methamphetamine conversion lab seen in the State of Arkansas to date, which was directly connected to two of the defendants indicted in the SoLow case. This lab was used to convert methamphetamine into crystal methamphetamine or "Ice." "Ice" is high-purity methamphetamine.
"The effect of meth and more particularly, "Ice," on our communities is a serious concern," stated Thyer. "Many studies have shown its devastating effect on the user's health. Meth labs pose a health risk to those nearby and an environmental risk due to the chemicals used and discarded in the process. This office is working closely with the DEA and Drug Task Forces across the State to prosecute to the full extent of the law those who seek to bring this scourge into our communities."
"Methamphetamine continues to be the number one drug threat in the state of Arkansas", said Bryant. "The dismantlement of this drug trafficking organization made a significant impact on the Central Arkansas community. Based on the significant seizures made in this investigation, it kept this large amount of methamphetamine from being distributed in our communities in Arkansas. The seizure of this large methamphetamine conversion lab in this case is a first for Arkansas, however other southern states have seen an increase in these types of labs."
The DEA and Central Arkansas Drug Task Force initiated an investigation into the drug-trafficking activities of Chester Green, aka "Cheese," in early 2012. Through that investigation, law enforcement learned that Green was distributing large quantities of methamphetamine in Central Arkansas and that he was being supplied by a distribution network out of Texas. The DEA, the Central Arkansas Drug Task Force, and the Arkansas State Police made multiple controlled purchases of methamphetamine from defendants during this investigation. Law enforcement also learned during the course of the investigation that one of the defendants being supplied with methamphetamine by Green, Timothy Vachon Johnson, is an employee of the United States Postal Service. Timothy Johnson was seen picking up methamphetamine from Green in his mail truck while on duty in Searcy.
The indictment was handed down by a Federal Grand Jury on March 9, 2013. The counts include conspiracy to distribute and to possess with intent to distribute more than 500 grams of methamphetamine, distribution of methamphetamine, possession with intent to distribute methamphetamine and marijuana, and use of telephone to facilitate a drug trafficking crime. (See defendant/charge list attached.). 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.
This investigation is designated as a Gulf Coast High Intensity Drug Trafficking Area (HIDTA) and as an Organized Crime and Drug Enforcement Task Force (OCDETF) case . Through the inclusion of Arkansas into the Gulf Coast HIDTA, law enforcement is provided additional training and tools to disrupt and dismantle major drug trafficking organizations in Arkansas.
The investigation for this arrest and the original SoLow Operation was conducted by the DEA. The SoLow Operation also included assistance from HIDTA #61 which consists of special agents from the DEA, as well as officers and personnel from the following agencies: Pine Bluff Police Department; Jefferson County Sheriff's Department; Jacksonville Police Department; 20th Judicial District Drug Task Force; Little Rock Police Department; Arkansas Highway Police; and the Arkansas National Guard. Also providing investigative assistance was the United States Post Office - Office of the Inspector General. The U.S. Attorney also thanks the following state and local partners who provided valuable assistance to the Task Force for the SoLow investigation and arrests: the Arkansas State Police, Homeland Security Investigations, White County Sheriff's Department, Lonoke County Sheriff's Department, Little Rock Police Department, Bald Knob Police Department, Higginson Police Department, and the Searcy Police Department. The indictment is being prosecuted by Assistant United States Attorney Benecia B. Moore.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty. The charges set forth in a Complaint are merely allegations. A federal Grand Jury will decide whether to indict on these charges. The defendant is presumed innocent until proven guilty.
SoLow DEFENDANTS/CHARGES
Conspiracy to distribute and possess with intent to distribute methamphetamine:
Chester Green, aka "Cheese," 32, detained on new charge August 2, 2013
Olen Jay Defoure, 35, released Justin Ellis, 25, released
Chevis Johnson, 27, detained on separate charges in Western District of Arkansas
Rodney Johnson, 34, released
Timothy Vachon Johnson, 37 released
Sammy Antoine Neal, 37, released
Marco Antonio Portes-Ortega, aka "Tony," age unknown, fugitive
Jose Refugio Ruiz-Juarez, aka Jose Ruiz-Cortes, aka "Cuco," 40, detained on separate charges
Roxana Whisenhunt, aka Roxana de al Rosa-Ramirez, 34, detained on separate charges
In addition to the conspiracy charges, the following defendants are also charged with the following crimes:
Chester Green, aka "Cheese", distribution of methamphetamine (2 counts), use of a telephone to facilitate a drug trafficking crime (2 counts).
Olen Jay Defoure, possession with intent to distribute methamphetamine (1 count).
Chevis Johnson, possession with intent to distribute methamphetamine (1 count), use of a telephone to facilitate a drug trafficking crime (1 count).
Rodney Johnson, possession with intent to distribute methamphetamine (1 count).
Timothy Vachon Johnson, distribution of methamphetamine (3 counts), use of a telephone to facilitate a drug trafficking crime (2 counts).
Sammy Antoine Neal, possession with intent to distribute methamphetamine (1 count).
Justin Ellis, use of a telephone to facilitate a drug trafficking crime (2 counts).
Marco Antonio Portes-Ortega, aka "Tony," use of a telephone to facilitate a drug trafficking crime (2 counts).
Jose Refugio Ruiz-Juarez, aka Jose Ruiz-Cortes, aka "Cuco," possession with intent to distribute methamphetamine (1 count), possession with intent to distribute marijuana (1 count)
Roxana Whisenhunt, aka Roxana de al Rosa-Ramirez, possession with intent to distribute methamphetamine (1 count), possession with intent to distribute marijuana (1 count), use of a telephone to facilitate a drug trafficking crime (1 count).
STATUTORY SENTENCES
Conspiracy to possess with intent to distribute more than 500 grams of methamphetamine is punishable by not less than 10 years, not more than life, incarceration in the Bureau of Prisons with a possible fine of up to $10,000,000, and not less than 5 years supervised release.
Possession with intent to distribute more than 500 grams of methamphetamine is punishable by not less than 10 years, not more than life, incarceration in the Bureau of Prisons with a possible fine of up to $10,000,000, and not less than 5 years supervised release.
Distribution of more than 5 grams of methamphetamine actual and possession with intent to distribute more than 50 grams of methamphetamine are punishable by not less than 5 years, not more than 40 years, incarceration in the Bureau of Prisons with a possible fine of up to $5,000,000, and not less than 4 years supervised release.
Distribution and possession with intent to distribute less than 50 grams of methamphetamine are 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 less than 50 kilograms of marijuana is punishable by not more than 5 years incarceration in the Bureau of Prisons with a possible fine of up to $250,000, and not more than 2 years supervised release.
Use of a communication facility to facilitate a drug trafficking crime is punishable by not more than 4 years incarceration in the Bureau of Prisons with a possible fine of up to $250,000, and not more than 1 year supervised release.
Little Rock Man Sentenced to 15 Years in Prison in District’s First Sex Trafficking CaseRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas announced that United States District Judge J. Leon Holmes sentenced Jermaine Lamon Roy, age 22, of Little Rock to 15 years imprisonment followed by 3 years of supervised release for sex trafficking.
“The women forced into sex trafficking now know that Roy will not be able to enslave them for many years to come,” stated Thyer. “They have the opportunity to regain their dignity and rebuild their lives without the threat of violence coercing them into sexual servitude. I’m grateful to our many law enforcement partners on the Denied Innocence Task Force for their commitment to protect young women of Arkansas from domestic sex trafficking.”
The case was investigated by the Little Rock Police Department Vice Unit in conjunction with the FBI through the Denied Innocence Task Force. They conducted a series of three undercover prostitution operations. Through these operations they learned of a pimp working in Little Rock using the name Vegas. During the third undercover operation, the Denied Innocence Task Force came in contact with a victim who identified the man using the name Vegas as her pimp. Vegas, later determined by investigators to be Roy, was arrested as a result of that sting operation.
Roy was charged in a Superseding Indictment on May 9, 2013, with one count of sex trafficking by the use of force, fraud, or coercion. August 2, 2013, after four and one-half hours of deliberation following four days of testimony and presentation of evidence, the jury found Roy guilty. Testimony from the victim, family members of the victim, and another prostitute who worked for Vegas showed that Roy routinely used force or threatened the use of force to cause the victim to engage in commercial sex acts.
This case was investigated by the Little Rock Police Department Vice Squad in partnership with the FBI Denied Innocence Task Force, of the FBI, the Little Rock, North Little Rock, Benton, Bryant, and Conway Police Departments, the Saline County Sheriff's Office, Arkansas State Police, Homeland Security Investigations, and the United States Marshal's Service. The case was prosecuted by Assistant United States Attorneys Marsha Clevenger, Tricia Harris and Kristin Bryant.