Eastern District of Arkansas
Press releases recorded for this federal judicial district.
Conway Businessman Found Guilty This Week of Filing False Tax ReturnsRead 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 that on Tuesday, July 30, 2013, a federal jury found Richard C. Mathews of Conway guilty of five counts of filing false tax returns and one count of interfering with the due administration of justice.
"This verdict sends a message that tax violations are serious crimes against the American public. The IRS is committed to investigate and recommend for prosecution those who provide false statements and corruptly obstruct the administration of our nation's tax laws," said Henry.
After a two day trial, a jury deliberated for two hours before returning guilty verdicts on all six counts charged in a Superseding Indictment filed July 11, 2012. According to the Indictment and testimony at trial, Mathews was self-employed operating a business soliciting members for a $99 joining fee into his system of making money by getting 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.
Mathews is out on bond and continues to operate his businesses. He faces a statutory maximum of 3 years in the Bureau of Prisons and up to a $100,000 fine on each count. Mathews will be sentenced at a later date to be set by the court.
This case was investigated by Internal Revenue Service - Criminal Investigations. The case was prosecuted by First Assistant United States Attorney Patrick C. Harris and Assistant United States Attorney Jamie Dempsey.
by making false allegations about the actions of the Special Agents and Revenue Officers of the IRS
Former Arkansas State Trooper Arrested on 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; and Colonel Stan Witt, Director of the Arkansas State Police announced that Sedrick Reed, age 43, and Lamont M. Johnson, age 45, both of Little Rock were arrested and charged by federal Complaint yesterday with possession with intent to distribute and distribution of cocaine. Both have an initial appearance scheduled for 2 p.m. today before United States Magistrate Judge J. Thomas Ray.
The Complaint alleges that Reed, who at the time of the investigation was an Arkansas State Police (ASP) Lieutenant with full oversight of the Troop A evidence vault, broke the evidence seal on a box of cocaine held in evidence and removed cocaine more than once for distribution. The investigation revealed that he was selling the cocaine to Johnson. The allegations in support of the criminal complaint are set forth in the complaint affidavit, attached.
"It's a very sad day when a law enforcement officer violates the public trust," stated Thyer. "Thankfully, because of the integrity and leadership at the Arkansas State Police, information regarding Lt. Reed's illegal actions was turned over to the Federal Bureau of Investigation to ferret out the dishonesty by one of their own. The ASP continued to provide cooperation throughout this investigation which has led to the charges Mr. Reed faces today."
"Yesterday's arrest was a result of the collaborative efforts of the ArkTrust Public Corruption Task Force, stated FBI Special Agent in Charge Randall C. Coleman. "The allegations against Lieutenant Reed are among the most serious and important that we investigate. When we receive credible allegations of law enforcement corruption, we will follow the facts where they lead us, as we want Arkansans to continue to trust in the vast majority of officers who respect their oath and who are committed to public service."
Colonel Witt stated, "We have worked alongside the FBI since the case was opened and regardless of where an investigation of this type may lead, even if it's among our own ranks, the State Police will always be accountable to the citizens and the laws they expect us to enforce."
If convicted, both Reed and Johnson face not more than 20 years in prison, a $1,000,000 fine, or both with not less than three years supervised release.
The investigation was conducted by the ArkTrust Public Corruption Task Force led by the Federal Bureau of Investigation and the Little Rock Police Department with full cooperation from the Arkansas State Police. Assistant United States Attorneys Christopher Givens and Julie Peters are 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 Arkansas Scholarship Lottery Deputy Director Pleads Guilty to 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, in a hearing held before U.S. District Judge Susan Webber Wright, Remmele Mazyck, 34, of Bryant, Arkansas, pled guilty to one count of wire fraud and one count of money laundering. The charges relate to a scheme to defraud the Arkansas Scholarship Lottery.
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 then log into the software and change the status of all the losing tickets to “Voided by Security”. In total, Mazyck received approximately $477,893.00 from the scheme.
“In attempting to beat the odds for winning in the Arkansas Scholarship Lottery, Mazyck stole funds that could have gone to another future student,” stated Thyer. “Odds are, when you choose to use illegal means to increase your winnings, you will lose.”
“Public officials, whether elected or appointed, hold positions of trust in the eyes of the public. That trust is broken when these officials commit crimes. No public official gets a free pass,” stated Christopher A. Henry, Special Agent in Charge of the IRS-Criminal Investigation Nashville Field Office. “The IRS enforces the nation's tax laws, but also takes particular interest in cases where someone, for their own personal benefit, has taken what belonged to others. With both law enforcement and financial investigation expertise, our agents are uniquely qualified to assist state and federal law enforcement 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."
Mazyck faces a maximum penalty of 20 years in prison and a fine of $250,000.00 when he is sentenced. The sentencing date will be set by the Court at a later date.
This investigation was conducted by IRS-Criminal Investigation and the Arkansas State Police. The case is being prosecuted by Assistant United States Attorneys Jana Harris and Cameron McCree .
An indictment contains only allegations. The defendant is presumed innocent unless and until proven guilty.
Local Merchants Indicted for Distribution of Designer DrugsRead 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 today that seven individuals were indicted by a federal grand jury in connection with Project Synergy, the largest-ever coordinated law enforcement strike against designer drugs. The indictment charges Amjad Kattom, age 36; Sahar Kattom, age 34; Yousef Qattoum, age 37;Abdul Aziz Farishta, age 50; Eassa Rawashdeh, age 23; Rodney Bryant, age 22; and Adam Kattoum, age 20, in Count 1 with conspiracy to distribute and possess with intent to distribute controlled substances and analogues of controlled substances, in violation of Title 21, United States Code, Section 846. Counts 2 and 3 charge Yousef Qattoum with distribution and possession with intent to distribute a controlled substance analogue. Count 4 charges Eassa Rawashdeh with distribution and possession with intent to distribute a controlled substance analogue. Count 5 charges Adam Kattoum with distribution and possession with intent to distribute a controlled substance and a controlled substance analogue. Count 6 charges Rodney Bryant with being a felon in possession of a firearm. Count 7 charges Amjad Kattom and Sahar Kattom with conspiracy to commit money laundering. Count 8 charges Yousef Qattoum and Abdul Aziz Farishta with conspiracy to commit money laundering. The indictment also seeks to forfeit approximately $17,338.40 in United States currency and real property of Amjad and Sahar Kattom.
The statutory penalty for conspiracy to distribute and possess with intent to distribute controlled substances and analogues of controlled substances and distribution and possession with intent to distribute controlled substances and analogues of controlled substances is not more than 20 years in prison, a $1,000,000 fine or both, with not less than three years of supervised release to follow. The statutory penalty for conspiracy to commit money laundering is not more than 20 years in prison, a fine of the greater of $500,000 or twice the value of the property involved in the transaction, or both, with not more than three years of supervised release to follow.
The investigation was conducted by the DEA - Tactical Diversion Squad composed of DEA Special Agents, DEA Diversion Investigators, and Task Force Officers from: Little Rock Police Department, Conway Police Department, Jefferson County Sheriff's Office, and Pine Bluff Police Department. Also taking part in the investigation was Homeland Security Investigations; the Internal Revenue Service - Criminal Investigation Division including Task Force Officers from Benton Police Department and Pulaski County Sheriff's Office; with the United States Postal Inspectors and the Little Rock Police Department. Assisting agencies were the Arkansas National Guard; the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, and Firearms; the United States Secret Service; the Arkansas State Police and the Arkansas Tobacco Control Board.
A indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
For more information on this case, see previous news release at:
http://www.justice.gov/usao/are/news/2013/June/Synergy_kattom_complaint_DEA_062613.html
(Indictment )
Nationwide Project Synergy Arrests in ArkansasRead the Press Release
Part of Largest-Ever Synthetic Drug Takedown
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 today that five individuals were arrested and charged by federal complaint in connection with Project Synergy, the largest-ever coordinated law enforcement strike against designer drugs. The federal complaint charges Amjad Kattom, age 36; Sahar Kattom, age 34; Yousef Qattoum, age 37;Abdul Aziz Farishta, age 50; and Adam Kattoum, age 20, with conspiracy to distribute and possess with intent to distribute controlled substances and analogues of controlled substances, in violation of Title 21, United States Code, Section 846. Eassa Rawashdeh, age 23, was also charged in the complaint. He was not arrested. Anyone knowing his whereabouts should contact their local law enforcement. The defendants appeared today before United States Magistrate Beth Deere for an initial appearance on the federal complaint and remain in custody.
"The arrests made here today are a part of a much larger operation in 35 states and abroad targeting dangerous designer synthetic drug trafficking organizations," stated Thyer. "We intend to send a clear message that law enforcement efforts to disrupt and dismantle drug trafficking organizations are increasingly coordinated. Street dealers to business owners, if you are operating an illegal drug organization, it's time to stop and consider the price you will pay."
"Many of these designer drugs (cannabinoids and cathinones) are unregulated and their availability makes them even more dangerous and deadly," warned Bryant. "Those who abuse designer drugs are playing Russian roulette. Users have absolutely no idea what they are putting into their bodies, nor do they understand the decrepit environments in which these drugs were made in foreign labs and further prepared for sale in the United States."
The complaint alleges that the defendants conspired to distribute synthetic cannabinoids and synthetic cathinones from several businesses in Central Arkansas, including Sunshine Food, Sunshine Mart, Woodrow Discount Store, Joseph's Discount Store, Smokey's Discount Tobacco, and Hip Hop Sportwear, from July 2012 through June 25, 2013. The affidavit alleges that multiple packages of the synthetic cannabinoids and synthetic cathinones were shipped to the defendants and multiple controlled purchases were made during the investigation.
The statutory penalty for conspiracy to distribute and possess with intent to distribute controlled substances and analogues of controlled substances is not more than 20 years in prison, a $1,000,000 fine or both, with not less than three years of supervised release to follow.
The investigation was conducted by the DEA - Tactical Diversion Squad composed of DEA Special Agents, DEA Diversion Investigators, and Task Force Officers from: Little Rock Police Department, Conway Police Department, Jefferson County Sheriff's Office, and Pine Bluff Police Department. Also taking part in the investigation was Homeland Security Investigations; the Internal Revenue Service - Criminal Investigation Division including Task Force Officers from Benton Police Department and Pulaski County Sheriff's Office; with the United States Postal Inspectors and the Little Rock Police Department. Assisting agencies were the Arkansas National Guard; the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, and Firearms; the United States Secret Service; the Arkansas State Police and the Arkansas Tobacco Control Board.
A criminal complaint contains only allegations. A defendant is presumed innocent unless and until proven guilty.
Former State Representative Hudson Hallum and Father Sentenced for Conspiracy to Commit Election FraudRead the Press Release
Little Rock - Patrick C. Harris, Attorney for the United States, Acting Under Authority Conferred by 28 U.S.C. § 515, and Federal Bureau of Investigation Special Agent in Charge Randall C. Coleman announced the sentencing of former State Representative Hudson Hallum, age 31, and his father, Kent Hallum, age 54, on a charge of conspiracy to commit election fraud. The Hallums were sentenced by United States District Judge Kristine G. Baker. Hudson Hallum was sentenced to three years probation with nine months of home confinement on electronic monitoring, fined $20,000 and ordered to perform 100 hours of community service. Kent Hallum was sentenced to three years probation with nine months home confinement on electronic monitoring and was ordered to pay a fine of $10,000. Kent was also sentenced to perform100 hours of community service. During the period of home confinement for both Hudson and Kent, employment is excepted as well as other activities approved in advance by probation.
"The activities of Mr. Hallum and his associates are very disappointing. It erodes the very basis for our democracy," said Harris. "The United States Attorney's Office considers protecting the integrity of the electoral process a priority for the people of Arkansas. Investigating and prosecuting voter fraud schemes such as this case, are essential to restoring confidence in elected public officials."
"Today's sentencings of a father and son for their roles in a voter fraud scheme demonstrate just how pervasive public corruption can be," stated FBI Special Agent in Charge Randall C. Coleman. "My office will continue to aggressively investigate those public officials who choose to violate the trust of Arkansans by engaging in these corrupt schemes."
Both Hudson and Kent Hallum waived indictment and entered guilty pleas to a conspiracy charge in an Information on September 5, 2012. In doing so, each acknowledged his participation in a conspiracy to bribe voters to influence absentee votes in the Arkansas District 54 primary, its runoff election, and the general election, all of which were held between February and July 2011. Hudson Hallum was a candidate in that election and won the District 54 House seat.
Former West Memphis Police Officer Sam Malone, age 32, and former West Memphis City Councilman Phillip Wayne Carter, age 44, who also pled guilty to the conspiracy charge, were sentenced in hearings held May 21 and May 22, 2013. Malone was sentenced to three years probation, the first 7.2 months of which will be spent on home confinement with electronic monitoring, plus 100 hours of community service. Malone will be restricted to his home while on confinement except for the hours of his employment. Carter was sentenced to three years probation, the first five months of which will be spent on home confinement with electronic monitoring, a $2,500 fine plus 100 hours of community service. Carter will also be restricted to his home while on confinement except for the hours of his employment.
According to the felony Information to which the defendants pled guilty, Hudson Hallum, was elected to House Seat 54 on July 12, 2011. Kent Hallum, age 53, managed the finances and certain logistics of his son's campaign for the District 54 seat, including the campaign's effort to solicit and secure votes cast by absentee ballot. Hudson Hallum hired Carter who was both a West Memphis City Councilman and a Crittenden County Juvenile Probation Officer, to implement the Hallum campaign's absentee ballot strategy. Malone who was a West Memphis police officer, assisted Carter in implementing the Hallum campaign's absentee ballot strategy.
Hudson Hallum, along with others, declared his candidacy as a Democrat in the special primary election for House Seat 54, which took place on April 20, 2011. Because neither Hudson Hallum nor any other Democratic candidate obtained the required majority of votes in the special primary election, a special primary runoff election took place on May 10, 2011. Hudson Hallum was certified as the winner in the special primary runoff by 8 votes. Hudson Hallum also won the special general election held on July 12, 2011, and was subsequently certified as the winner of the House District 54 special election. At the time of the elections, District 54 included West Memphis, Marion, Earle, and Turrell, Arkansas, as well as other rural areas of Crittenden County.
Hudson Hallum and Kent Hallum tasked Carter, Malone, and others with identifying absentee ballot voters within District 54; obtaining and distributing absentee ballot applications to particular voters; determining when absentee ballots were mailed to absentee voters by the Crittenden County Clerk's Office; and making contact with recipients of absentee ballots to assist those voters in completing the ballots. Once such absentee ballots were completed, the absentee voters typically placed their ballots in unsealed envelopes, which were retrieved by Carter, Malone and others and then subsequently delivered to either Hudson Hallum or Kent Hallum for inspection to ensure that the absentee ballot votes had been cast for Hudson Hallum. After inspection by Hudson Hallum or Kent Hallum, the absentee ballots that contained votes for Hudson Hallum were sealed and mailed to the Crittenden County Clerk's Office. If a ballot contained a vote for Hudson Hallum's opponent, it was destroyed.
At the plea hearing held September 5, 2012, the defendants admitted that certain absentee ballot voters received things of value in exchange for their votes being cast for Hudson Hallum. For example, in or about May 2011, Carter and Malone provided a chicken dinner to an individual in exchange for the absentee ballot votes of that individual and one other individual. Further, on or about May 4, 2011, Carter contacted Hudson Hallum about a family of eight who had requested a "family meal" in exchange for their absentee ballot votes being cast in favor of Hudson Hallum. Carter requested $20 from Hudson Hallum to pay for the food, to which request Hudson Hallum agreed.
In addition, on or about May 5, 2011, Carter notified Hudson Hallum that some absentee ballot voters were "holding on" to their absentee ballots because they needed money for food. Hudson Hallum instructed Carter to obtain money for the absentee voters from Kent Hallum. Hudson Hallum further told Carter that $20 to $40 was too much to pay for one vote, but that this amount was acceptable to pay for the votes of multiple members of a household. On that same date, Hudson Hallum also told Carter, "We need to use that black limo and buy a couple of cases of some cheap vodka and whiskey to get people to vote." Two days later, Carter and Kent Hallum spoke with an individual in Memphis, Tennessee about getting a discounted price for the purchase of 100 half pints of vodka for the campaign.
The investigation was conducted by the Federal Bureau of Investigation and the Arkansas State Police.
Texas Man Pleads Guilty to Corrupt Interference with the IRS Laws and Filing False LiensRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced Fred Neal, Jr., age 80, of Marshall, Texas pled guilty before United States District Judge Billy Roy Wilson to Counts Two and Three in a federal Indictment charging he corruptly interfered with the Internal Revenue Laws and filed false liens against government employees. Count One of the Indictment charging conspiracy to defraud the United States was dismissed. He was not detained.
Neal was indicted on February 2, 2011. The Indictment alleged that Neal and his now deceased wife, Doris, owed over $860,000 in federal income taxes for tax years 1987 to 1994. The Internal Revenue Service (IRS) initiated legal action to collect the taxes owed. In response, Neal and Doris were alleged to have conspired together to file repeated false and fraudulent tax forms to impede the IRS from collecting the debt. The Neals mailed false IRS 1099 tax forms, misrepresenting that the IRS officials, court and other individuals had each received personal income of $7 to $210 million. The letters were sent to targeted "recipients" in Little Rock, in Texas and in the District of Columbia.
The Indictment alleged in Count Two that the Neals attempted to intimidate, harass and attack the financial integrity of government employees and other officials they believed to be party to the legal actions taken to collect the tax debt they owed. This harassment included filing numerous fictitious legal and tax documents meant to attack the personal financial integrity of their targets. These fictitious documents were filed against employees of the IRS, Department of Justice tax attorneys, Arkansas federal judges, a United States Attorney for the Western District of Arkansas and the Secretary of the United States Treasury. Mr. Neal filed fictitious IRS 1099 tax forms affecting more than twenty people. By filing these forms, he misrepresented that the government employees had received personal income reportable to the IRS totaling more than one billion dollars. In addition, Mr. Neal filed false non-performance liens and false Maritime liens against officials totaling more than one billion dollars.
Count Three of the Indictment alleged slander of title against a federal official by filing false liens. Starting in May 2008, the Neals filed in the public record of Arkansas false liens and encumbrances against the real and personal property of officers and employees of the United States on account of their performance of their official duties. The Neals also filed liens against county officials, an insurance executive, banks, and attorneys in Arkansas, Georgia and Texas. Mr. Neal's filing of non-performance liens and fraudulent Maritime liens against 17 federal employees totaled more than one billion dollars.
Neal faces a statutory penalty for corrupt interference of not more than three years imprisonment with a possible fine of up to $250,000 and not more than one year supervised release. The statutory penalty for filing false liens is not more than 10 years imprisonment and a fine of not more than $250,000 or both, followed by not more than three years supervised release.
The investigation was conducted by the Treasury Inspector General for Tax Administration.
Former VA Hospital Federal Credit Union President Pleads Guilty to an Information Charging EmbezzlementRead 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 United States Secret Service Little Rock Field Office, announced the waiver of Indictment and a plea of guilty by Former VA Hospital Federal Credit Union President Karen York, age 45, to a federal Information charging credit union embezzlement.
At the change of plea hearing, the defendant admitted that she engaged in a check kiting scheme and made false deposit entries to her account, and subsequently, falsified records to hide the fact that funds were missing from the VA Hospital Federal Credit Union. The defendant also admitted to using VA Hospital Federal Credit Union funds for an unauthorized pay increase and unreimbursed health insurance. An audit from December 2000 through June 2012 determined a fraud loss of $62,513.09 attributed to the defendant, but the defendant repaid a portion of that loss on the day she was suspended. The parties agreed that the defendant owes restitution in the amount of $43,940.59.
The statutory penalty for credit union embezzlement, in violation of 18 U.S.C. § 657, is not more than 30 years incarceration in the Bureau of Prisons with a possible fine of up to $1,000,000, and not more than 5 years supervised release.
The investigation was conducted by the United States Secret Service.
(York Information )
Arrests Bust Prescription Narcotics Drug Dealers Based in ConwayRead 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 the arrests today of eight individuals on a federal indictment charging with conspiracy to distribute and possession with intent to distribute unregulated prescription pills and controlled substances.
The Indictment alleges that seven individuals, Brian Fletcher, age 28; Jeremy Burton, age 28; Heather Gooden Story, age 27; Stephanie Hagie, age 28; Michael Young, age 27; all of Conway; Jason Hobby, age 31 of North Little Rock; and Frankie Drennan, age 49, of Little Rock conspired to distribute prescription narcotics and each, on various dates, possessed with the intent to distribute varying quantities of different prescription narcotics. Also arrested today on a federal Complaint was Burnett Smith, age 45, of Conway, Arkansas.
The arrests are the result of an investigation that began in 2011 with the DEA, in cooperation with Conway Police Department Narcotics unit, identifying Jeremy Burton and other co-conspirators involved in unregulated prescription pill and controlled substances distribution in Faulkner, Pulaski, White, and Van Buren Counties in Central Arkansas. During the investigation, members of the conspiracy engaged in the unauthorized distribution of Schedule II narcotics including, Oxycodone (Roxycodone), Oxymorphone (Opana) and Hydromorphone (Dilauded). The arrests today were coordinated by agents of DEA with the Conway Police Department, Faulkner County Sheriff's Office, United States Marshal Service, 20th Judicial District Prosecuting Attorney's Office, University of Central Arkansas Police Department, and the Arkansas National Guard Counter Drug Unit.
Numerous search and seizure warrants were executed in conjunction with the arrests. The investigation has thus far resulted in the seizure of four firearms of varying calibers, assorted ammunition, undetermined amount of money, a variety of pharmaceutical narcotics, paraphernalia associated with distribution such as scales, packaging, pill cutters, and syringes.
The case was investigated by special agents from the DEA, as well as officers and personnel from the following agencies: Conway Police Department, Faulkner County Sheriff's Office, United States Marshal Service, 20th Judicial District Prosecuting Attorney's Office, University of Central Arkansas Police Department, and the Arkansas National Guard Counter Drug Unit. This case is being prosecuted by Assistant United States Attorney Anne Gardner.
An indictment contains only allegations. Each 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.
(Indictment )
(Complaint Affidavit )
Little Rock Man Found Guilty on Federal Sex Trafficking ChargeRead the Press Release
First Sex Trafficking Case Prosecuted by Eastern District of Arkansas
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, and Little Rock Police Department Chief Stuart Thomas, announced that a federal jury found Jermaine Lamon Roy, age 22, of Little Rock guilty of one count of sex trafficking by use of force, fraud, or coercion. Roy will be sentenced at a later date to be set by the court. He faces a statutory minimum of 15 years to life in the Bureau of Prisons.
"This is an important case for the victims of sex trafficking," stated Thyer. "Because of the investigative commitment by the Little Rock Police Department's Vice Squad, this case was brought to the federal level for prosecution. Together with the FBI, they provided the necessary evidence to stop the violence and forced sex trafficking committed by Roy. While this is the first sex trafficking case prosecuted in the Eastern District of Arkansas, I feel sure there will be more. Those who devalue human dignity will meet justice."
"Today's guilty verdict is the first conviction resulting from the work of our Denied Innocence Task Force, a partnership between my office and 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," stated FBI Special Agent in Charge Randall C. Coleman. "Working together, we will continue to aggressively investigate those who participate in sex trafficking."
"We are grateful for work of the Denied Innocence Task Force and for the diligent prosecution of this case by the United States Attorney's Office," said Chief Thomas. "I hope this sends an important message that we will continue to pursue such cases and that we will be successful."
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 as Jermaine 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 in violation of Title 18, United States Code, Section 1591(a)(1).
The jury reached a verdict after four and one-half hours of deliberation following four days of testimony and presentation of evidence. 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.
Robbery Crew Charged in 27-count IndictmentRead the Press Release
Little Rock - Christopher R. Thyer, Attorney for the Eastern District of Arkansas and Randall Coleman, Special Agent in Charge of the Federal Bureau of Investigation, announced a 27-count indictment was handed down by a Federal Grand Jury today, charging six defendants in connection with multiple armed robberies of fast-food restaurants, gas stations, and other local businesses in Little Rock, Benton, Bryant, Sherwood, Lonoke and Carlisle over the past year. Among the victims are Wendy's, Burger King, Shell Super Stop, Citgo, Taco Bell, Little Caesar's, Tropical Smoothie, McDonald's, Dollar General, Taco Bueno, and Andy's Restaurant.
The counts include conspiracy to interfere with commerce by robbery, interference with commerce by robbery, and possession of a firearm in furtherance of a crime of violence. If convicted of conspiracy to interfere 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.
"A criminal organization such as this not only victimizes business and individuals during the robbery, but also the citizens who frequent those businesses," stated Thyer. "This indictment demonstrates our commitment to work together as law enforcement agencies to bring justice to bear on those who use intimidation and violence against people in Central Arkansas. People deserve to live and operate businesses without the fear of criminal interference in their daily lives."
"Whether grabbing a quick bite to eat, filling up your gas tank, or going to the store - Arkansans want to feel safe in conducting their day-to-day activities," stated FBI Special Agent in Charge Randall C. Coleman. "The FBI will continue to work with our partners at the Little Rock Police Department to disrupt and dismantle violent groups like this one."
The Little Rock Police Department, along with other local law enforcement agencies from across Central Arkansas, approached the FBI earlier this year regarding what they believed to be a well-organized and violent robbery crew targeting local businesses in several different jurisdictions. In each jurisdiction where the robberies occurred, law enforcement worked tirelessly using videos from the crime scenes, interviewing witnesses along with additional investigative techniques to identify several of the subjects involved. These men allegedly robbed restaurants, gas stations, and various businesses, generally late in the evening. Typically, there would be one person designated to take the manger to the safe, another one to three would hold the customers and employees at gunpoint while a driver waited nearby for their getaway. They took from $200 to $6,100 during the robberies. Along with the money, the Indictment alleges Daniel Glenn Caple, age 20, stole cigarettes. In a cooperative effort with the FBI, local law enforcement agencies arrested four of the defendants indicted, who have been held on local robbery charges pending this federal indictment. Two members of this robbery crew, Christopher Earnest Bell, age 36, and Antwann Deshawn Sockwell, age 24, both of Little Rock are still at large. Anyone with information of their whereabouts should contact their local law enforcement or the FBI. Law enforcement believes that this robbery crew is responsible for other armed robberies in the area, and the investigation is ongoing.
The investigation was conducted by the FBI in cooperation with the Little Rock, Benton, Bryant, Sherwood, Lonoke, and Carlisle Police Departments. 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.
DEFENDANTS/CHARGES
Conspiracy to interfere with commerce by robbery:
- Christopher Earnest Bell, 36, Little Rock
- Daniel Glenn Caple, 20, Amity
- Justin Prince Pettis, 23, Little Rock
- Tony Bernard Smith, 28, Little Rock
- Antwann Deshawn Sockwell, 24, Little Rock
- Mike Dewayne Waller, 45, Little Rock
In addition to the conspiracy charge, the following defendants are also charged with the following crimes:
- Christopher Earnest Bell, interference with commerce by robbery (9 counts).
- Daniel Glenn Caple, interference with commerce by robbery (3 counts), possession of a firearm in furtherance of a crime of violence (3 counts).
- Justin Prince Pettis, interference with commerce by robbery (3 counts).
- Tony Bernard Smith, interference with commerce by robbery (6 counts).
- Antwann Deshawn Sockwell, interference with commerce by robbery (3 counts), possession of a firearm in furtherance of a crime of violence (1 count).
- Mike Dewayne Waller, interference with commerce by robbery (11 counts), possession of a firearm in furtherance of a crime of violence (2 counts).
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 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.
Possession of a firearm in furtherance of a crime of violence (if brandished), is punishable by not less than 7 years, but not more than life, incarceration in the Bureau of Prisons with a possible fine of up to $250,000, and not more than 5 years supervised release.
Former Arkansas State Treasurer Martha Ann Shoffner Indicted 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 Randall C. Coleman, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation, announced today that a federal grand jury indicted former Arkansas State Treasurer Martha Ann Shoffner, age 68, of Newport, 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.
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 find 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 find of up to $250,000, and not more than 3 years supervised release.
The investigation was conducted by the Federal Bureau of Investigation.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
(Superseding Indictment )
Former West Memphis Councilman and Former West Memphis Police Officer Sentenced for Conspiracy to Commit Election FraudRead the Press Release
Little Rock - Patrick C. Harris, Attorney for the United States, Acting Under Authority Conferred by 28 U.S.C. § 515, and Federal Bureau of Investigation Special Agent in Charge Randall C. Coleman announced the sentencing of two Crittenden County men on a charge of conspiracy to commit election fraud. The individuals sentenced by District Judge Kristine Baker were former West Memphis City Councilman Phillip Wayne Carter, age 44, and former West Memphis Police Officer Sam Malone, age 32. These defendants entered guilty pleas to the conspiracy charge after waiving indictment and the filing of a felony information on September 5, 2012. In doing so, each acknowledged his participation in a conspiracy to bribe voters to influence absentee votes in the Arkansas District 54 primary, its runoff election, and the general election, all of which were held between February and July 2011.
Phillip Carter was sentenced today to three years probation, with five months to be completed on home confinement. Carter will be restricted to his residence except for his employment. Carter may be subject to electronic monitoring at the discretion of the Probation Office. He was also fined $2,500 and ordered to complete 100 hours of community service. Finally, he has to pay a $100 special assessment.
Sam Malone was sentenced in a hearing held May 21, 2013 to three years probation, the first 7.2 months of which will be spent on home confinement. Malone may be subject to electronic monitoring at the discretion of the Probation Office. Malone will be restricted to his home while on confinement except for the hours of his employment. He was also ordered to complete 100 hours of community service. Malone was also ordered to pay a special assessment of $100.
As a result of the federal charges and guilty plea, Carter resigned from his position as a Crittenden County Juvenile Probation Officer and Malone resigned from his position as a West Memphis Police Department police officer.
"This is believed to be the first case in the United States in which state election law violations have been prosecuted under the Travel Act, which is 18 U.S.C. 1952(a)(3)," stated Harris. "The case essentially dismantled a corrupt election machine in Crittenden County that has been in place for many years. It resulted in the resignation of a member of the State House of Representatives, the resignation of a county Juvenile Probation Officer, and the resignation of a West Memphis police officer. The defendants can no longer serve in any capacity as public officials. Carter was a member of the West Memphis City Counsel, and Malone was a Crittenden County Quorum Court member and Crittenden County School Board member."
"This case serves as an unfortunate reminder of how pervasive public corruption can be, stated FBI Special Agent in Charge Randall C. Coleman. Arkansans deserve to have both fair and honest elections and fair and honest public officials. I encourage anyone with a tip about public corruption in this state to contact our ArkTrust Public Corruption Task Force by calling the hotline at 501-221-8200 or by sending an e-mail to [email protected]."
According to the felony information to which Malone and Carter pled guilty, Hudson Hallum, age 29, was elected to House Seat 54 on July 12, 2011. Kent Hallum, age 54, managed the finances and certain logistics of his son's campaign for the District 54 seat, including the campaign's effort to solicit and secure votes cast by absentee ballot. Hudson Hallum hired Carter, who was both a West Memphis City Councilman and a Crittenden County Juvenile Probation Officer, to implement the Hallum campaign's absentee ballot strategy. Malone, who was a West Memphis police officer, assisted Carter in implementing the Hallum campaign's absentee ballot strategy.
Hudson Hallum, along with others, declared his candidacy as a Democrat in the special primary election for House Seat 54, which took place on April 20, 2011. Because neither Hudson Hallum nor any other Democratic candidate obtained the required majority of votes in the special primary election, a special primary runoff election took place on May 10, 2011. Hudson Hallum was certified as the winner in the special primary runoff by 8 votes. Hudson Hallum also won the special general election held on July 12, 2011, and was subsequently certified as the winner of the House District 54 special election.
According to the felony information, Hudson Hallum and Kent Hallum tasked Carter, Malone, and others with identifying absentee ballot voters within District 54; obtaining and distributing absentee ballot applications to particular voters; determining when absentee ballots were mailed to absentee voters by the Crittenden County Clerk's Office; and making contact with recipients of absentee ballots to assist those voters in completing the ballots. Once such absentee ballots were completed, the absentee voters typically placed their ballots in unsealed envelopes, which were retrieved by Carter, Malone and others and then subsequently delivered to either Hudson Hallum or Kent Hallum for inspection to ensure that the absentee ballot votes had been cast for Hudson Hallum. After inspection by Hudson Hallum or Kent Hallum, the absentee ballots that contained votes for Hudson Hallum were sealed and mailed to the Crittenden County Clerk's Office. If a ballot contained a vote for Hudson Hallum's opponent, it was destroyed.
At the hearing held September 5, 2012, the defendants admitted that certain absentee ballot voters received things of value in exchange for their votes being cast for Hudson Hallum. For example, in or about May 2011, Carter and Malone provided a chicken dinner to an individual in exchange for the absentee ballot votes of that individual and one other individual. Further, on or about May 4, 2011, Carter contacted Hudson Hallum about a family of eight who had requested a "family meal" in exchange for their absentee ballot votes being cast in favor of Hudson Hallum. Carter requested $20 from Hudson Hallum to pay for the food, to which request Hudson Hallum agreed.
In addition, on or about May 5, 2011, Carter notified Hudson Hallum that some absentee ballot voters were "holding on" to their absentee ballots because they needed money for food. Hudson Hallum instructed Carter to obtain money for the absentee voters from Kent Hallum. Hudson Hallum further told Carter that $20 to $40 was too much to pay for one vote, but that this amount was acceptable to pay for the votes of multiple members of a household. On that same date, Hudson Hallum also told Carter, "We need to use that black limo and buy a couple of cases of some cheap vodka and whiskey to get people to vote." Two days later, Carter and Kent Hallum spoke with an individual in Memphis, Tennessee about getting a discounted price for the purchase of 100 half pints of vodka for the campaign.
Kent Hallum and Hudson Hallum also waived indictment and pled guilty to the conspiracy charge on September 5, 2012. They are scheduled to appear before Judge Baker for sentencing on June 20, 2013.
State charges are pending against Leroy Grant, Eric Cox, Lorenzo Parker, Amos Sanders, and Lisa Burns related to the election fraud scheme. They were filed by special prosecutor H.G. Foster, who was appointed to a circuit court judgeship in January 2013. The case is now being prosecuted by Pulaski and Perry County Prosecutor Larry Jegley.
The investigation was conducted by the Federal Bureau of Investigation and the Arkansas State Police. The case is being prosecuted by Assistant United States Attorneys Tricia Harris and Angela Jegley.
Arkansas State Treasurer Martha Shoffner Charged with ExtortionRead 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, announced today that Arkansas State Treasurer Martha Shoffner, age 68, was charged by federal Complaint today with attempt and conspiracy to commit extortion under color of official right, in violation of Title 18, United States Code, Section 1951(a). Shoffner was arrested on May 18, 2013, and appeared today before United States Magistrate Judge H. David Young for an initial appearance on the federal Complaint. Shoffner was released from custody.
The Complaint alleges that Shoffner obtained cash payments, to which she was not entitled, from an individual, with the individual's consent, knowing that the cash payments were made under color of official right, in return for official acts as Arkansas State Treasurer. The allegations in support of the criminal complaint are set forth in the complaint affidavit, attached.
If convicted, Shoffner faces not more than 20 years in prison and up to a $250,000 fine, or both followed by not more than 3 years supervised release.
The investigation was conducted by the Federal Bureau of Investigation. Assistant United States Attorneys Jana Harris and Stephanie Mazzanti are 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.
(Complaint and Affidavit Supporting Complaint )
16 Defendants, Including Mexican Drug Cartel Members, Charged in Cocaine ConspiracyRead 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 that a 25-count indictment handed down by a federal grand jury on May 2, 2013, was unsealed today charging sixteen defendants in Arkansas, Texas, and Mexico with multiple drug offenses. The indictment alleges the lead defendant, Idalia Ramos Rangel, a/k/a La Tia or Big Momma, is a high-ranking member 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.
The Indictment is the result of a large-scale investigation into cocaine and narcotics trafficking from Mexico to Arkansas. Agents determined that Rangel's drug trafficking organization is responsible for delivery of more than one hundred kilograms of cocaine in Arkansas. The charges in the Indictment include conspiracy to possess with intent to distribute more than five kilograms of cocaine, distribution of cocaine and use of a telephone to facilitate a drug trafficking crime. All sixteen defendants are charged with conspiracy to distribute cocaine. If convicted of conspiracy to distribute more than five kilograms of cocaine, each defendant will face a sentence of not less than 10 years to life imprisonment.
"The arrests made in this case have dismantled a primary supply of cocaine into the State of Arkansas," stated Thyer. "From the Gulf Cartel to prison to the streets of Central Arkansas, this was not a typical case to investigate. I want to thank the FBI for their leadership in this investigation. I also want to acknowledge the significant investigative work the Federal Bureau of Prisons and the Little Rock Police Department provided. Those who do business with drug cartels should be on notice that law enforcement is investigating and will commit the resources necessary to punish them for their illegal trafficking."
"Today, a strong group of dedicated federal, state, and local law enforcement officials - from Arkansas to Texas - came together to disrupt a criminal drug enterprise directly linked to the Gulf Cartel," stated FBI Special Agent in Charge Randall Coleman. "It was simply a case of outstanding teamwork. In Arkansas, we will continue to work together to disrupt and dismantle those groups who choose to conduct their criminal enterprise activities here."
According to the indictment, Rangel's family members are alleged to be involved in the drug distribution conspiracy. Her son, Mohammed Kazam Martinez, a/k/a Mo, a federal inmate in the Bureau of Prisons, recruited inmates in the Federal Correctional Complex at Forrest City, Arkansas, to distribute Rangel's Gulf Cartel cocaine upon their release from prison. Those inmates included Emmanuel Ilo, a/k/a Chi Chi or Chi, and Mervin Johnson, a/k/a Slim, who the indictment alleges began distributing kilogram and multi-ounce quantities of the cocaine in Central Arkansas upon their release from federal prison. Mohammed Martinez communicated with members of this 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. Another of Rangel's sons, Homar Martinez, and one of her daughters, Nishme Martinez, are also charged as part of the conspiracy.
The indictment alleges that Ilo distributed Rangel's Gulf Cartel cocaine to Dwatney Noid; Dwight McLittle, a/k/a D.A.; Lamont Williams, a/k/a Peter Rabbit; Gerard Trice, a/k/a Fly; Tarvars Honorable, a/k/a Pudgy; and others, for redistribution to customers in the Eastern District of Arkansas. The FBI made multiple controlled purchases of cocaine in Central Arkansas totaling more than one kilogram during the investigation of this case.
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.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
DEFENDANTS/CHARGES - 11 in custody - 10 arrested today
Conspiracy to possess with intent to distribute cocaine:
- Idalia Ramos Rangel, 57, Matamoros, Mexico
- Mohammed Kazam Martinez, 31, Beaumount, TX
- Emanuel Ilo, 34, Little Rock, AR
- Mervin Johnson, 37, Little Rock, AR
- Homar Martinez, 31, Brownsville, TX
- Manuel Garza, 31, Brownsville, TX
- Jaime Benevides, 27, Austin, TX
- Nishme Martinez, 26, Austin, TX
- Denice Duran Martinez, 34, Brownsville, TX
- Yadira Anahy Martinez, 36, Brownsville, TX
- Dwatney Noid, 30, Little Rock, AR
- Dwight McLittle, 27, Little Rock, AR
- Shanieka Tatum, 35, Little Rock, AR
- Lamont Williams, 34, Little Rock, AR
- Gerard Trice, 29, Little Rock, AR
- Tarvars Honorable, 33, Little Rock, AR
In addition to the conspiracy charges, the following defendants are also charged with the following crimes:
- Emanuel Ilo, distribution of cocaine (6 counts), use of a telephone to facilitate a drug trafficking crime (2 counts).
- Mervin Johnson, distribution of cocaine (1 count).
- Dwatney Noid, distribution of cocaine (2 counts), use of a telephone to facilitate a drug trafficking crime (2 counts).
- Dwight McLittle, distribution of cocaine (6 counts).
- Shanieka Tatum, use of a telephone to facilitate a drug trafficking crime (3 counts).
- Lamont Williams, use of a telephone to facilitate a drug trafficking crime (2 counts).
- Gerard Trice, use of a telephone to facilitate a drug trafficking crime (2 counts).
- Tarvars Honorable, distribution of cocaine base (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 five kilograms of cocaine 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 less than 500 grams of cocaine or less than 28 grams of cocaine base is punishable by not more than 20 years incarceration in the Bureau of Prisons with a possible fine of up to $1,000,000, and not less than 3 years supervised release.
Use of a communication facility to facilitate a drug trafficking crime are 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.
(Rangel Indictment)
(Tallenetal Indictment)
Randeep Mann Resentenced to Life in the 2009 West Memphis Bombing of DoctorRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, released this statement today regarding the re-sentencing of Randeep Mann, age 54, in the 2009 West Memphis bombing case. Mann was re-sentenced by United States District Judge Brian Miller to life plus 360 months to be served concurrently in prison on two bombing counts, 10 years on Counts 3 & 6 weapons counts. Count 5 was vacated in accordance with the Eighth Circuits' ruling. The rest of his previous sentence, 5 years on the obstruction counts and $100,000 fine, were unchanged. Mann was arrested on March 4, 2009, and has been in federal custody since that date. "A little more than two years ago, Randeep Mann was sentenced to life imprisonment for his role in the 2009 bombing of Dr. Trent Piece in West Memphis. That was the appropriate sentence then, and it remains the appropriate sentence now. While my office respects the legalities that necessitated the re-sentencing hearing held earlier today, those legal issues do not change the violent, senseless crimes that were committed. Hopefully, the life sentence handed down today will mark the end of this case and bring closure to some very difficult times for Dr. Pierce and his family.
I want to recognize the efforts of prosecutors in my office as well as the many federal, state, and local law enforcement officers who worked on this case for many months. I commend them for their commitment to fully investigating and prosecuting this complex case. Specifically, my thanks go out to the Arkansas State Police, the West Memphis Police Department, the West Memphis Fire Department, the Pope County Sheriff's Office, the Shelby County Sheriff's Department Bomb Squad. Additionally, I must also express my gratitude to the many medical personnel and professionals who ultimately saved the life of Dr. Trent Pierce."
Randeep Mann was convicted August 9, 2010, on multiple counts related to the use of a weapon of mass destruction against Dr. Pierce and his vehicle, possession of unregistered weapons, and obstruction. He was sentenced by United States District Judge Brian Miller to life plus 360 months in prison on two bombing counts, 10 years on three weapons counts and 5 years on obstruction counts. The weapons convictions included counts of owning an unregistered machine gun and possessing almost 100 grenades which were found near Mann's Pope County residence. On December 6, 2012, the Eighth Circuit Court of Appeals affirmed Mann's convictions on the bombing, possession of unregistered weapons and obstruction counts. The Court ruled that Mann be re-sentenced on all but the obstruction counts because certain enhancements were applied to his sentence without sufficient support. The Court also ruled that one of two counts regarding the illegal possession of a machine gun be dropped at re-sentencing.
Former State Probation Officer Guilty of Extortion in Operation Delta BluesRead the Press Release
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), announced today that former Arkansas Department of Community Corrections Parole/Probation Officer Roxanne Davis, age 38, of Wynne, pleaded guilty to one count of extortion under color of official right (18 U.S.C. § 1951) before U.S. District Court Judge J. Leon Holmes in Case No. 4:12CR00260 JLH. The remaining count against Davis was dismissed upon the Court's acceptance of the plea.
During the Change of Plea hearing, Davis admitted the following facts:
Between October 2007 and October 2011, Davis was an employee of the Arkansas Department of Community Correction (ADCC), serving as a Parole/Probation Officer for parolees/probationers in Lee County, Arkansas, and elsewhere. Davis's official duties and responsibilities included: monitoring the parolees/probationers' compliance with the conditions of probation by explaining the rules, regulations, and conditions of parole or probation; administering court-ordered and random drug tests to parolees/probationers and writing parole violation reports upon a positive test; maintaining a chronological history of contacts with parolees/probationers and writing reports accordingly; counseling parolees/probationers during office visits and referring them to various agencies for assistance such as substance abuse counseling and treatment, employment, education, and human services; and making home and community visits to verify parole/probation information and follow-up visits to determine if parolees/probationers are adhering to conditions of parole/probation and to assist them with the community adjustment process.
Davis, like all ADCC officers and staff, was prohibited from collecting court-ordered "economic sanctions" from parolees/probationers. Davis was aware that all payments were to be mailed by the parolee/probationer directly to the ADCC Central Office in Little Rock.
As part of her ADCC duties and responsibilities, Davis was assigned to supervise Torrence Turner, who was on parole from a first degree murder conviction. Between October 2007 and October 2011, Davis misused her authority as an ADCC Parole/Probation Officer to collect cash payments and obtain goods from parolee Torrence Turner in exchange for not enforcing Torrence Turner's parole conditions.
For example, in May 2011, Davis accepted cash from Torrence Turner, ostensibly for a "mother's day present" and for a child's birthday. Davis stipulates that the government would show that her conversations with Torrence Turner concerning these payments were recorded pursuant to a court-authorized wiretap on Torrence Turner's phone. Between October 2007 and October 2011, Davis received more than $1000, but less than $5000, in cash from Torrence Turner in exchange for not enforcing Torrence Turner's parole conditions. Additionally, in April 2011, upon being notified that the Federal Bureau of Investigation conducted an inquiry into Torrence Turner's criminal history, Davis informed Torrence Turner of this inquiry so that Torrence Turner could hide his illegal activities, including drug trafficking, from law enforcement.
Sentencing will be set by the Court at a later date. The potential penalties for a violation of Title 18, United States Code, Section 1951 are up to 20 years incarceration, up to three years supervised release, and up to a $250,000 fine. Davis was not detained.
Torrence Turner previously pleaded guilty in Case No. 4:11CR00211-1 JMM to conspiracy to possess with intent to distribute and to distribute crack cocaine in violation of 21 U.S.C. § 846. During his Change of Plea hearing on September 17, 2012, before U.S. District Judge James M. Moody, Turner admitted that he led a drug trafficking organization in Marianna, Arkansas, and that between January 2010 and October 2011, he distributed between 50 and 150 kilograms of cocaine and between 2.8 kilograms and 8.4 kilograms of crack cocaine in Lee County and other counties in the Eastern District of Arkansas. On February 13, 2013, Judge Moody sentenced Turner to 30 years incarceration in the Bureau of Prisons, to be followed by 5 years supervised release, no fine.
The investigation was conducted by the United States Attorney's Office and the FBI, with the assistance of the Arkansas Department of Community Correction - Internal Affairs Division. It is being prosecuted by Assistant United States Attorney Julie Peters.
Former Faulkner County Sheriff Candidate Pleads Guilty in Election ScamRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that, in a hearing held before United States District Judge D. Price Marshall, Jr., Harold Allen Smith, 47, of Greenbriar, pled guilty to one count of transferring a false birth certificate via the United States mail. 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 for Sheriff of Faulkner County.
The sentencing date will be set by the Court at a later date. Smith faces a maximum penalty of 15 years in prison and a fine of $250,000.00 when he is sentenced.
This investigation was conducted by United States Postal Inspection Service. First Assistant U.S. Attorney Patrick Harris is prosecuting the case for the United States.
Former Helena-West Helena Police Officer Sentenced in Operation Delta BluesRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas announced today that former Helena-West Helena Police Sergeant Marlene Kalb was sentenced to 30 months imprisonment with three years of supervised release to follow. No fine was imposed. Kalb was convicted on December 14, 2012, following a jury trial, of two counts of attempted extortion under color of official right and two counts of attempt to possess with intent to distribute cocaine. The sentence was imposed by United States District Judge James M. Moody. Kalb has been in custody since the verdict on December 14, 2012.
Kalb's convictions stem from an operation targeting corrupt police officers in the Arkansas Delta, including Helena-West Helena. The jury found that Marlene Kalb, while in uniform and on duty, provided a protective police escort for a purported drug trafficker, who was actually a confidential informant working with the FBI, and his cocaine by trailing him through Helena-West Helena in her police car on September 9, 2011 and September 26, 2011.
The FBI-led sting operation was part of the investigation known as "Operation Delta Blues," which focused primarily on public corruption and drug trafficking activities in the Helena-West Helena and Marianna, Arkansas, areas. Approximately 800 federal, state, and local law enforcement personnel from the FBI, Drug Enforcement Administration (DEA), Internal Revenue Service Criminal Investigations (IRS-CID), Bureau of Alcohol, Tobacco, and Firearms (ATF), Arkansas State Police (ASP), and the Little Rock Police Department (LRPD) participated in the October 11, 2011, arrests.
The four other police officers indicted on October 11, 2011 previously pleaded guilty. Former Helena-West Helena Police Officer Herman Eaton pleaded guilty to one count of money laundering and one count of attempted extortion under color of official right. On May 16, 2012, U.S. District Judge Leon Holmes sentenced Eaton to 16 months imprisonment and 2 years supervised release. Former Marvell Police Officer Robert Wahls pleaded guilty to attempted interference with commerce by means of extortion ("Hobbs Act") and money laundering. On May 30, 2012, Judge Billy Roy Wilson sentenced Wahls to 24 months imprisonment and 2 years supervised release. Former Phillips County Deputy Sheriff and Helena West Helena Police Officer Dean Jackson pleaded guilty to one count of drug conspiracy relating to his role in the Sedrick Trice/Leon Edwards drug trafficking operation. On June 8, 2012, Judge Moody sentenced Jackson to 80 months imprisonment and 4 years supervised release. Former Helena-West Helena Police Officer Robert Rogers, aka Bam Bam, pleaded guilty to one count attempted interference with commerce by means of extortion ("Hobbs Act"). On August 1, 2012, Judge James M. Moody sentenced Rogers to 14 months imprisonment and 2 years supervised release. All four police officers remained in custody from the time of their arrest October 11.
A sixth former officer, Roxanne Davis, was charged in the Delta Blues case on September 17, 2012. Davis is set for trial on May 20, 2013, before United States District Judge J. Leon Holmes. She was a state probation officer and has also been charged with alleged Hobbs Act violations. An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
The investigation was conducted by the United States Attorney's Office, FBI, DEA, ATF, IRS-CID, ASP and LRPD. It was prosecuted by Assistant United States Attorneys Julie Peters, Michael Gordon, and Benecia Moore.
Former Insurance Broker Indicted for EmbezzlementRead 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 for the Federal Bureau of Investigation; and Deborah Perry, Acting Regional Director of the United States Department of Labor, Employee Benefits Security Administration; announced today that a federal grand jury indicted John Mathis Lile III, 55, of Little Rock on two counts of embezzlement.
According to the indictment, Lile was formerly the President of Cosmopolitan Life Insurance Company (“Cosmo”) and President, CEO, and Chairperson of Advanced Insurance Brokerage of America, Inc. (“AIBA”), Little Rock-based companies that together funded and managed self-insurance health care plans for small businesses around the State. The indictment goes on to claim that Lile abused his position by using a company-issued credit card to charge personal expenses of more than $300,000 over a three-year span, all of which were ultimately paid for by funds from Cosmo and AIBA.
“When health care companies are victimized, the shockwaves extend far beyond office walls and negatively impact the lives and wellbeing of individual policy holders,” stated Thyer. “Those who steal from trusting citizens for personal gratification will ultimately find there is a price to pay. If convicted of these charges, Lile faces a statutory sentence of ten years on each count.”
“In today’s challenging economic times, hard-working Arkansans must be able to rely on the security of their employment benefits to support themselves and their families,” said SAC Coleman. “My office will continue to work together with the Department of Labor, the Department of Justice, and our other partners to investigate and pursue prosecution of those who choose to embezzle from employment benefit plans.”
“Theft of employee benefit plan assets jeopardizes the security of America’s workers. I hope that this indictment sends a clear message to all who hold an office of trust, or operate or administer employee benefit plans, that the Department of Labor is committed to vigorously pursuing those who abuse their positions for personal gain,” Perry added.
This investigation was conducted by the Federal Bureau of Investigation and the United States Department of Labor. It is being prosecuted by First Assistant United States Attorney Patrick C. Harris and Assistant United States Attorney Alex Morgan.
An indictment contains only allegations. The defendant is presumed innocent unless and until proven guilty.
19 Blytheville Residents Charged in Multiple Drug Trafficking and Weapons CasesRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas and Alcohol, Tobacco, Firearms and Explosives, Special Agent in Charge Marino F. Vidoli announced seven indictments which were unsealed today charging nineteen defendants in Blytheville, Arkansas, with multiple drug and gun charges. All told, the indictments charge the 19 defendants with 91 different counts. Approximately two kilograms of methamphetamine, multiple ounces of crack cocaine, more than 26 pounds of marijuana and 24 guns, including six stolen guns, were seized in the operation.
“As I said in October of 2011, our commitment to eradicating drug trafficking and violent crime has never been stronger,” stated United States Attorney Christopher R. Thyer. “In order to achieve the results we see today, it takes commitment from every law enforcement agency in the region. These large-scale investigations take time and teamwork. These indictments, arrests and seizures of weapons are proof that law enforcement in the Eastern District of Arkansas stands behind their commitment to the citizens of this region.”
“This investigation is a prime example of what happens when agencies work together to make their communities safer,” said Vidoli. “ATF’s commitment to reducing violent crime begins with our relationships with our law enforcement partners.”
The indictments are part of a larger operation, named H.I.T.S. (High Intensity Trafficking Suppression), initiated in response to firearms violence and the trafficking of firearms and narcotics in northeast Arkansas and southeast Missouri. Over the past two years the investigation resulted in over 240 undercover operations and numerous other law enforcement actions.
The main indictment charges eleven defendants in fifty-three separate counts stemming from a large-scale investigation into methamphetamine and narcotics trafficking in Blytheville. The indictment was handed down by a federal grand jury on March 6, 2013. The counts include conspiracy to possess with intent to distribute more than 500 grams of methamphetamine, aiding and abetting distribution of methamphetamine, use of a firearm in furtherance of a drug trafficking crime, felon in possession of a firearm, use of a telephone to facilitate a drug trafficking crime, and obstruction of justice. (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.
Six other indictments charge eight more defendants with counts including possession with intent to distribute methamphetamine, possession with intent to distribute crack cocaine, use of a firearm in furtherance of a drug trafficking crime, felon in possession of a firearm, and use of a telephone to facilitate a drug trafficking crime.
The ATF operation in Blytheville developed into multiple cases involving law enforcement at the federal, state and local levels. The conspiracy indictment is the largest case to date from that investigation.
Those arrested today will be arraigned in federal court in Little Rock before United States Magistrate Judge Jerome T. Kearney beginning at 10 a.m. on Thursday, March 14, 2013. Detention hearings will be held on Friday, March 15, 2013.
The investigation was conducted by ATF, in partnership with the 2nd Judicial Drug Task Force, which includes officers from the Blytheville Police Department, the Osceola Police Department and the Mississippi County Sheriff’s Office. The Arkansas State Police provided additional assistance with today’s operation. The seven indictments are being prosecuted by Assistant United States Attorneys Chris Givens, Alex Morgan, Kristin Bryant and Cameron McCree.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
Partnership Pays - Federal Forfeiture Nets Large Checks for Local Law EnforcementRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Christopher Henry, Special Agent in Charge, Internal Revenue Service-Criminal Investigation (IRS-CI), recognized Pulaski County Sheriff Doc Holladay and Benton Police Chief Kirk Lane for their partnership in the Financial Crimes Task Force. Since 2011, the Pulaski County Sheriff’s Office has received $101,893.24 and the Benton Police Department has received $97,290.02 in shared funds.“When we put our limited resources together, the partnership benefits are significant,” stated Thyer. “In this case, local law enforcement agencies provided the IRS-CI Financial Crimes Task Force with manpower and resources in federal investigations and in return they received greatly needed funds for their agencies. It is a win-win partnership for law enforcement and the communities where we live and work.”
IRS-Criminal Investigation agents partner with state and local agencies to investigate various white collar criminal violations. Often, both the criminal and civil investigations conducted have seizure and forfeiture of funds generated from the activities investigated. These funds are returned to the state and local partners to financially assist their agencies in fulfilling their law enforcement missions and in keeping our communities a safe place to live.
First Assistant United States Attorney Patrick C. Harris and Assistant United States Attorney Cameron McCree prosecuted the forfeiture for the United States.
Former Chief Financial Officer Indicted for Wire FraudRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced that Andrew Thurman Melton, age 66, of Roland, Arkansas, made his initial appearance before United States Magistrate Judge J. Thomas Ray this morning on 12 counts of wire fraud. Melton pled not guilty. Melton is not detained.
Melton was indicted by a federal grand jury Wednesday, February 6, 2013. If convicted on these charges, each count carries a statutory penalty of no more than 20 years incarceration and/or a fine of $250,000.
According to the indictment, Melton was the Chief Financial Officer for ThermoEnergy Corporation. 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 indictment alleges that between, in or about August 2006 and April 2009, through this scheme, he obtained approximately $109,575.80.
The investigation was conducted by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation Division. This case is being prosecuted by AUSA Jana Harris.
An indictment contains only allegations and is not evidence of guilt. The defendant is presumed innocent until and unless proven guilty.
Former Benton Firefighter Indicted in Federal Child Pornography CaseRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced that Timothy Ryan Bodkin, age 39, a former Lieutenant with the Benton Fire Department, made his initial appearance today before United States Magistrate J. Thomas Ray on charges of receipt and possession of child pornography. Bodkin pled not guilty. He is not detained.
Bodkin was indicted February 6, 2012, after an investigation into the file sharing of child pornography. On May 24, 2012, an Arkansas State Police Special Agent isolated an IP address used by Bodkin which had downloaded pornographic images. With assistance from the Saline County Sheriff’s Office, it was determined that the computer Bodkin allegedly used to acquire and view child pornography was located in his locker at a Benton Fire Department station.
After securing a search warrant, investigators found a laptop computer in Bodkin’s locker at the fire station. Investigators obtained a subsequent search warrant to review the materials on the computer. The forensic report conducted by agents with the Arkansas State Police, revealed over 1,000 images of child pornography were located on Bodkin’s computer.
This case was investigated by the Arkansas State Police and the Saline County Sheriff’s Office. Assistant United States Attorney Chris Givens is prosecuting this case for the United States.
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 www.projectsafechildhood.gov.
An indictment contains only allegations. The defendant is presumed innocent unless and until proven guilty.
Two Central Arkansas Men Plead Guilty to Conspiracy to Commit Wire FraudRead 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 United States Secret Service Little Rock Field Office, announced the waiver of Indictment and pleas of guilty by Christopher Jackson, age 38, of Alexander, Arkansas, and Steve Bernard Roby, age 41, of North Little Rock, Arkansas, to a federal Information charging conspiracy to commit wire fraud. Roby pled guilty today and Jackson pled guilty yesterday, February 14, 2013.
"I am happy to report the thousands of photos recovered will be returned to their rightful owner," stated Thyer. “It is a good day when we can bring justice to a business owner who has worked hard to build a reputable business. With the return of these photos, the archive of photos will be greatly restored and the thieves who thought they could profit from them are facing serious time in prison for their greed.”
Special Agent in Charge Brian T. Marr stated, “The Secret Service is committed to aggressively investigating those associated with this type of financially motivated crime. Embezzlement as a crime that brings economic hardships on the business, and their owners in our communities. Unfortunately, most business owners attempt to protect themselves, their business, and employees from perceived threats from the outside and do not pay attention to the employee threat from the inside. So by working cooperatively with our law enforcement and judicial partners, this agency was able to make sure that those responsible for this breach of trust were held accountable for their criminal actions.”
The statutory penalty for conspiracy to commit wire fraud is not more than twenty (20) years imprisonment, a fine of up to $250,000, three (3) years of supervised release, and a $100 special assessment. Both defendants remain free on their own recognizance pending sentencing, which will be set at a later date by the Court.
This case was investigated by the United States Secret Service Little Rock Field Office and the North Little Rock Police Department. This case is being prosecuted by Assistant United States Attorney Stephanie Mazzanti.
Three Operation “Meilky Way” Defendants Sentenced in Methamphetamine Distribution CaseRead the Press Release
Ring Leader Sentenced to 35 Years Imprisonment
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 United States District Judge J. Leon Holmes sentenced Michael Meilke, age 38, of Bradford, Arkansas, to 102 months imprisonment for conspiracy to possess with intent to distribute more than 500 grams of methamphetamine, and 60 months imprisonment for possession of a firearm in furtherance of a federal drug trafficking offense, to run consecutive, for a total of 162 months imprisonment, and 5 years supervised release. Also sentenced today was Paul Randall Hussey, age 41, of North Little Rock, Arkansas to 162 months imprisonment with 4 years supervised release for possession with intent to deliver more than 50 grams methamphetamine mixture.
Tuesday, February 5, 2013, Jorge Rojas-Olivera, age 27, of Batesville, Arkansas was sentenced to 35 years imprisonment and 5 years supervised release. Rojas-Olivera previously pled guilty to Count One of the Superseding Indictment which charged Rojas-Olivera and his co-defendants with conspiracy to possess with intent to distribute more than 500 grams of methamphetamine.
Upon the conclusion of the two-day sentencing hearing for Rojas-Olivera, Tuesday, United States District Judge J. Leon Holmes found Rojas-Olivera responsible for more than 15 kilograms of methamphetamine, for possession of a firearm, for making credible threats to use violence, for the offense involving the importation of methamphetamine, for maintaining a premises for the purpose of distributing methamphetamine, and for being an organizer or leader of criminal activity. Judge Holmes denied Rojas-Olivera a reduction for acceptance of responsibility. Additionally, Judge Holmes found that the defendant attempted to obstruct justice by attempting to solicit the murder of a government witness. At the hearing, the United States presented evidence of phone calls between Rojas-Olivera and co-defendants where Rojas-Olivera discussed his methamphetamine distribution activities and drug debts, including calls where Rojas-Olivera threatened to kill a person who owed a drug debt, but law enforcement intervened to avoid any violence.
This investigation targeted a large scale drug trafficking organization distributing multi-pound quantities of methamphetamine in central, north, and northeast Arkansas. The methamphetamine was smuggled from Mexico to Arkansas for distribution. In total, law enforcement seized 13.3 pounds of methamphetamine, 7 vehicles, $163,590, and 5 guns.
"I would like to thank and commend all federal, state and local law enforcement who took part in the investigation of this case," stated Thyer. "It is a high priority to remove meth from our communities. More importantly, that we dismantle the criminal organizations bringing meth into our communities. With the previous sentencings of members of this drug-trafficking organization and the sentencings of Meilke and Hussey today, justice has prevailed to prevent this operation from re-establishing itself. Additionally, the Rojas-Olivera sentence of 35 years reflects law enforcement's intolerance to criminals who lead drug organizations and threaten the administration of justice with violence, particularly violence against potential witnesses."
The superseding indictment, which charged twenty-two (22) individuals, is the result of “Operation Meilke Way,” a multi-agency investigation led by DEA. All 22 defendants have pled guilty, 18 defendants have been sentenced, and 4 defendants are awaiting sentencing.
This case was investigated by the DEA - Little Rock HIDTA Group # 62 composed of Special Agents from DEA and Task Force Officers from the Pulaski County Sheriff’s Department, the North Little Rock Police Department, the Benton Police Department, the Arkansas State Police, and the Jefferson County Sheriff’s Department. Also involved in the investigation was the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Independence County Sheriff’s Office; the Central Arkansas Drug Task Force; the 16th Judicial District Drug Task Force; the Arkansas National Guard; and the Maumelle Police Department. This case is being prosecuted by Assistant United States Attorney Stephanie Mazzanti and Assistant United States Attorney Kristin Bryant.
See attached document for status of individual defendants.
(Status of Defendants )
Real Estate Developer Pleads Guilty to Fraud ChargeRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced that real estate developer, Roger Stephen Clary, age 60, of Little Rock, pled guilty to mail fraud before United States District Judge J. Leon Holmes today. The remaining four counts of wire fraud were dismissed.
According to the indictment, Clary created a company called Destination Ventures which was to purchase, custom outfit and lease buses. Clary obtained a loan from Banc of America Leasing Corporation (BALC) to fund the purchase and outfitting of the buses. The loan was approved and entered into on May 8, 2008. On 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.
Clary faces a statutory penalty of no more than 30 years incarceration and/or a fine of $1,000,000 with five years of supervised release. The sentencing date will be determined by the Court at a later date.
The investigation was conducted by the Little Rock Field Office of the Federal Bureau of Investigation. The case was prosecuted by former First Assistant United States Attorney Jane Duke and Assistant United States Attorney Angela Jegley.
Former Little Rock Diagnostic Clinic Nurse Pleads Guilty to Aiding and Abetting Ceo in Obtaining Hydrocodone by FraudRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Drug Enforcement Administration Assistant Special Agent in Charge William J. Bryant announced Catherine L. Minor waived indictment and pled to a felony information charging her with one count of aiding and abetting James Derek Johnston to obtain hydrocodone by fraud.
Although hydrocodone abuse is rising among all ages and across all ethnic and socioeconomic groups, it has been called the ‘white-collar’ addiction because so many professionals have become caught in its trap,” stated Thyer. “Prescription drug abuse knows no boundaries. Its effect on careers and lives is devastating. If someone you know is involved in the abuse of prescription drugs, educate yourself, talk to them, take them to a substance abuse program, and seek medical advice. You can help prevent a loved one or co-worker from losing their career and you must might save their life.”
According to the felony information, Minor, age 62, who was employed as a nurse, aided and abetted James Derek Johnston, age 42, to knowingly and intentionally obtain hydrocodone, a Schedule III narcotic controlled substance, on or about February 8, 2012, when she submitted a false prescription for the drug to a pharmacy in Johnston’s name, when in fact, no such prescription had been issued or authorized by a physician with DEA prescribing authority.
At the hearing held today before United States District Judge J. Leon Holmes, Minor admitted that she worked as a nurse at Little Rock Diagnostic Clinic for 15 years, and retired in late 2012. She admitted that in approximately 2007, James Derek Johnston, who was employed at the clinic as Chief Executive Officer, began to request that she call in or fax prescriptions for hydrocodone in his name to a number of different pharmacies in the Little Rock area. While Johnston had received hydrocodone prescriptions legitimately from a physician at Little Rock Diagnostic Clinic in the past, the prescriptions Minor submitted for Johnston between approximately 2007 and July 2012 were submitted without the knowledge or consent of any prescribing physician at Little Rock Diagnostic Clinic or elsewhere.
According to the factual summary offered by the Assistant United States Attorney at the hearing, during the time frame in which the fraud occurred, Minor called in or faxed approximately 200 fraudulent hydrocodone prescriptions in Johnston’s name, allowing Johnston to obtain approximately 25,000 pills.
Johnston, who is no longer employed by Little Rock Diagnostic Clinic, waived indictment and pled guilty on December 18, 2012, to a felony information charging him with one count of obtaining hydrocodone by fraud.
The maximum statutory penalty for aiding and abetting another to obtain a controlled substance by fraud is 4 years imprisonment, a fine of $250,000, and one year of supervised release. Sentencing for both Minor and Johnston will be set at a later date to be determined by the Court.
LRDC was fully cooperative with federal authorities in the investigation, and the investigation did not reveal any evidence that compromised any patient information or identities.
This investigation was conducted by the newly formed Tactical Diversion Squad at the DEA Little Rock District Office, whose main priority is to investigate individuals involved in the diversion of Prescription Drugs. DEA special agents, DEA diversion investigators, United States Secret Service agents and task force officers from the Little Rock Police Department participated in this investigation. The case was prosecuted by Assistant United States Attorneys Patricia S. Harris and Kristin Bryant.