Eastern District of Arkansas
Press releases recorded for this federal judicial district.
Former Judge Arrested for Bribery and Obstruction of JusticeRead the Press Release
WASHINGTON – A former local district court judge in Arkansas was arrested today in Little Rock on criminal charges related to his alleged solicitation of sex in exchange for agreeing to take action on a criminal case pending before his court.
According to court documents, Thomas David Carruth, 63, of Clarendon, was an elected judge of the Monroe County district court. In April 2022, Carruth allegedly solicited sex from the girlfriend of a defendant in exchange for expediting that defendant’s trial date. Carruth allegedly lied to FBI agents when questioned about the incident.
Carruth is charged by indictment with three counts of honest services wire fraud, three counts of using a facility in interstate commerce in furtherance of unlawful activity, one count of bribery, one count of making false statements, and one count of obstruction of justice. If convicted, Carruth faces up to 20 years in prison on the top counts.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Jonathan D. Ross for the Eastern District of Arkansas, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Special Agent in Charge James A. Dawson of the FBI Little Rock Field Office made the announcement.
The FBI Little Rock Field Office is investigating the case with the assistance of the Arkansas State Police.
Trial Attorney Lauren Britsch Slater of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney J. William Crow for the Eastern District of Arkansas are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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If you have questions, please call the Office of Public Affairs at 202-514-2007.
Former Judge Arrested for Bribery and Obstruction of JusticeRead the Press Release
A former local district court judge in Arkansas was arrested today in Little Rock on criminal charges related to his alleged solicitation of sex in exchange for agreeing to take action on a criminal case pending before his court.
According to court documents, Thomas David Carruth, 63, of Clarendon, was an elected judge of the Monroe County district court. In April 2022, Carruth allegedly solicited sex from the girlfriend of a defendant in exchange for expediting that defendant’s trial date. Carruth allegedly lied to FBI agents when questioned about the incident.
Carruth is charged by indictment with three counts of honest services wire fraud, three counts of using a facility in interstate commerce in furtherance of unlawful activity, one count of bribery, one count of making false statements, and one count of obstruction of justice. If convicted, Carruth faces up to 20 years in prison on the top counts.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Jonathan D. Ross for the Eastern District of Arkansas, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Special Agent in Charge James A. Dawson of the FBI Little Rock Field Office made the announcement.
The FBI Little Rock Field Office is investigating the case with the assistance of the Arkansas State Police.
Trial Attorney Lauren Britsch Slater of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney J. William Crow for the Eastern District of Arkansas are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Little Rock Man Sentenced to 30 Years in Prison for Distributing Fentanyl That Resulted in DeathRead the Press Release
LITTLE ROCK—A Little Rock man who distributed the fentanyl that resulted in a person’s overdose death has been sentenced to 30 years in prison. Jemel Foster, 32, was sentenced today by United States District Judge Billy Roy Wilson, who considered Foster’s convictions of four federal drug and firearm crimes, including distribution of fentanyl that resulted in death.
Foster was also convicted in his July 2022 trial of possessing fentanyl with intent to distribute it, being a felon in possession of a firearm, and possessing a firearm in furtherance of a drug-trafficking crime. Judge Wilson sentenced Foster to 300 months for distribution of fentanyl resulting in death, the maximum sentenced allowed by law of 240 months and 120 months, respectively, for possession of fentanyl with intent to deliver and being a felon in possession of a firearm, and 60 months for possession of a firearm in furtherance of a drug-trafficking crime. The 60-month sentence is to run consecutively to the 300- month sentence, for a total of 360 months in prison. There is no parole in the federal system.
“Today’s lengthy sentence emphasizes the reality that drug crime is violent crime,” stated United States Attorney Jonathan D. Ross. “A young woman has needlessly lost her life because of the violence that accompanies drug crime. Illegal fentanyl distribution is a scourge in our community that needs to be stopped, and this sentence should make clear that there are severe consequences for anyone who chooses to illegally sell fentanyl. We are thankful this defendant will no longer be able to peddle this deadly substance in our community.”
On July 6, 2021, a grand jury charged Foster in a superseding indictment with the four counts he took to trial, all of which related to two January evenings in 2021.
The evidence at trial revealed that on the evening of January 11, 2021, a woman purchased fentanyl from Foster around 7:22 p.m. in the parking lot of a Little Rock Walgreens store. According to testimony from the medical examiner who conducted her autopsy, the woman died from a fatal dose of fentanyl around midnight that evening at her mother’s nearby home. After discovering her body the next morning, the woman’s family contacted the Little Rock Police Department, and eventually the Drug Enforcement Administration (DEA). At trial, the DEA agents involved in the case explained how they were able to identify Foster as the source of the fatal fentanyl from data in the victim’s phone.
The DEA, believing Foster would not be aware the woman had died, used the victim’s phone to contact Foster on January 12, 2021, and ask if he had any more fentanyl for sale. Foster agreed to meet at the same Walgreen’s parking lot the person he believed would be the woman who purchased fentanyl from him the night before. When Foster arrived at the parking lot, the DEA arrested him and located eight bags of fentanyl in his pants, totaling approximately four grams, and a firearm in his vehicle. The bags of fentanyl found on Foster’s person matched exactly two bags of fentanyl that were found on the victim’s body during her autopsy.
At trial, the medical examiner testified that there is no safe dosage of illicit fentanyl, and tiny amounts of the substance can kill a person nearly immediately. The medical examiner and state toxicologist testified that it was their opinion that fentanyl caused the victim’s death.
“Fentanyl is the deadliest drug threat we are facing today, killing Americans at record rates,” said DEA Assistant Special Agent in Charge Jarad Harper. “Last year alone, nearly 108,000 lives were lost to a drug poisoning, with fentanyl driving this record increase. Drug traffickers are mixing fentanyl in other illicit drugs in an effort to drive addiction and create repeat buyers. This investigation highlights the efforts of DEA, our law enforcement partners, and the United States Attorney’s Office who work tirelessly every day to bring dangerous drug dealers to justice.”
In addition to his sentence of imprisonment, Foster was sentenced to three years of supervised release on each count to run concurrently. The investigation was conducted by DEA, with assistance from the Little Rock Police Department and Arkansas State Police. The case was prosecuted by Assistant United States Attorneys Chris Givens and Benecia Moore.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Teacher's Assistant Pleads Guilty to Production of Child PornographyRead the Press Release
LITTLE ROCK— A teacher’s assistant has pleaded guilty to three counts of production of child pornography. Augustus “Gus” Shenker, 22, of Little Rock, who was initially charged in a criminal complaint in May 2021 and indicted in June 2021, pleaded guilty today before United States District Judge Lee P. Rudofsky.
In May 2021, FBI received a cyber tip that Dropbox user Augustus Shenker, using an email address that contained his name, possessed seven videos containing child pornography. Investigators determined Shenker’s address and learned that he was employed at Miss Selma’s School in Little Rock, an early education school with children from 18 months old to fifth grade.
FBI agents obtained a search warrant for Shenker’s home and made contact with him at the school where he worked. Law enforcement seized Shenker’s iPhone and advised him a search warrant was being executed at his residence. Shenker was interviewed and admitted he used to have a problem with child pornography several years ago but no longer viewed child pornography. He also confirmed the email address and Dropbox account from the cyber tip belonged to him.
A review of items seized from Shenker’s residence revealed six videos created in March 2021 that showed Shenker touching the buttocks and vagina of a preschool-age child in a classroom at Miss Selma’s School. His iPhone contained a hidden folder with 19 additional videos, all of which were taken in the same preschool classroom where Shenker worked. Shenker’s face is visible in several of the videos. In addition to the videos of abuse that Shenker produced himself, law enforcement located more than a thousand images of child sexual abuse on Shenker’s phone and other devices.
Shenker was first charged in a criminal complaint on May 18, 2021, when the FBI received the initial cyber tip. On June 1, 2021, after the discovery of the videos on his phone, a federal grand jury returned an indictment charging Shenker with 22 counts of production of child pornography and one count of possession of child pornography. On Tuesday, Shenker pleaded to three of the production counts.
“This defendant violated the trust parents placed in him each day by placing their children in his care,” said United States Attorney Jonathan Ross. “Using his position to exploit preschoolers is an unthinkable abuse, especially in their own school—the very place we expect children to be protected. We appreciate the hard work of the FBI in identifying and arresting this defendant and hope this conviction deters others who would harm children.”
“Today’s conviction of Mr. Shenker demonstrates the unwavering dedication and adamant determination of the investigators who serve on our Violent Crime squad,” said FBI Little Rock Special Agent in Charge James A. Dawson. “FBI agents, professional support staff, and local law enforcement partners worked tirelessly to uncover Mr. Shenker’s abominable crimes while ensuring his victims and their families received assistance. Alongside our partners at the U.S. Attorney’s office, FBI Little Rock’s Violent Crime squad will continue to relentlessly identify, investigate, and prosecute predators who seek to harm children within our community.”
Shenker will be sentenced by Judge Rudofsky at a later date. The investigation is being conducted by the FBI Little Rock Child Exploitation and Human Trafficking Task Force and is being prosecuted by Assistant United States Attorney Kristin Bryant.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Newport Man Sentenced to Ten Years in Prison for Possession of Pipe BombsRead the Press Release
LITTLE ROCK—A Newport man has been sentenced to ten years in prison for possession of an unregistered firearm after attempting to sell pipe bombs. Darius Balentine, 28, was sentenced yesterday afternoon by United States District Judge Lee P. Rudofsky. His codefendant, Wayne Riley, 27, of Pleasant Plains, was sentenced in November and also received the statutory maximum sentence of ten years.
In September 2020, officers conducted a home visit at Balentine’s residence. Balentine was a convicted felon on active parole supervision with a search waiver on file, and officers had learned that he was in possession of a firearm. While searching the home, officers located a .380-caliber pistol and two CO2 bottles containing gun powder and roofing nails, equipped with fuses and designed as explosive devices.
Multiple witnesses confirmed the explosives belonged to Riley, who had dropped them off at Balentine’s home a few days prior. Investigators obtained text messages in which Riley stated he had ten pipe bombs and wanted to sell them for $100 each or $800 for all ten.
Balentine and Riley were indicted for possession of the pipe bombs in July 2021. Balentine was also charged with being a felon in possession of the .380-caliber pistol. Riley pleaded guilty in June 2022, and Balentine pleaded guilty two months later. In addition to the sentence of ten years imprisonment, which is the maximum allowed by law, both Balentine and Riley will serve three years of supervised release after their terms of incarceration.
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Newport Police Department; Jackson County Sheriff’s Office; Arkansas State Police; and Arkansas Department of Community Corrections. The case was prosecuted by Assistant United States Attorney Jordan Crews.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Conway Man Sentenced to 30 Years in Prison for Attempted Production of Child PornographyRead the Press Release
LITTLE ROCK—A Conway man was sentenced yesterday afternoon for attempting to produce child pornography. United States District Court Judge Billy Roy Wilson sentenced Kenneth Avance, 26, to 30 years in federal prison.
In May 2021, FBI received a report that Kenny Avance had contacted an individual on Snapchat and asked for photos of “you doing sexy things with your little ones.” Avance was aware the individual had children ages 9 and 13. Avance asked the person to “show them naked or naked and you touching them,” and the individual responded they were not comfortable doing that. Avance then sent two images of a female toddler, completely naked, with a naked adult male’s genitalia in the photo.
During the investigation, FBI agents discovered Avance had two cell phones, both of which contained images of child sexual abuse. Forensic examination revealed these phones contained 630 photos and 74 videos of child sexual abuse material.
Avance was indicted in June 2021 and pleaded guilty in August 2022. In addition to the 30-year prison term, Avance was sentenced to ten years of supervised release following his imprisonment. The case was investigated by the FBI and prosecuted by Assistant United States Attorney Allison Bragg.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Jonesboro Man Sentenced to 20 Years in Prison for Methamphetamine Conspiracy, Being a Felon in Possession of a FirearmRead the Press Release
LITTLE ROCK—A Jonesboro man has been sentenced to 240 months in federal prison for his involvement in multiple crimes including a methamphetamine conspiracy, assault on a federal officer, and being a felon in possession of a firearm. United States District Judge Brian S. Miller sentenced Eiichi Moore, 44, this morning in Little Rock. In addition to the sentence of imprisonment, Judge Miller sentenced Moore to five years of supervised release.
From April 2019 to January 2020, Moore and others conspired to distribute methamphetamine in the Jonesboro area. Moore provided methamphetamine to other dealers who distributed it at Moore’s direction. Law enforcement conducted several controlled purchases of methamphetamine in which Moore typically sold a pound of methamphetamine for $7,000.
After several of these controlled drug purchases, on January 15, 2020, FBI went to arrest Moore, who fired shots at federal agents during his arrest. After Moore was taken into custody, he was found to be in possession of two semi-automatic pistols and a semi-automatic shotgun. He was charged later that month and pleaded guilty in May 2021.
“Law enforcement officers put their lives on the line every day to protect the public,” stated United States Attorney Jonathan D. Ross. “This defendant brazenly shot at the agents who came to arrest him for the crimes he committed. This 20-year sentence should clearly convey to anyone who would harm law enforcement officers that these violent acts will be met with a long prison term.”
“Today’s federal court sentence puts an end to Eiichi Moore’s well-documented criminal history in northeast Arkansas,” said FBI Little Rock Special Agent in Charge James A. Dawson. “Mr. Moore’s crimes not only preyed upon Jonesboro citizens but also endangered federal agents when he shot at an FBI SWAT team during a lawful arrest operation in January 2020. Mr. Moore’s period of incarceration should give pause to anyone attempting to peddle narcotics in our Arkansas communities or threaten federal law enforcement officers.”
The investigation was conducted by the FBI with assistance from the Jonesboro Police Department, Arkansas State Police, Second Judicial Drug Task Force, and Craighead County Sheriff’s Office. The case was prosecuted by Assistant United States Attorneys Erin O’Leary and Bart Dickinson.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Beebe Man Sentenced to 25 Years in Prison for Producing Child PornographyRead the Press Release
LITTLE ROCK—A Beebe man was sentenced yesterday afternoon for production of child pornography. United States District Court Judge Lee P. Rudofsky sentenced Joshua Sweat, 30, to 25 years in federal prison.
In April 2019, police in Allen, Texas, notified the Little Rock Police Department that they had located messages between an individual they were investigating in Texas and Joshua Sweat, who lived in Arkansas. In the messages, Sweat stated he was caring for a “little boy” each day and began sending nude images of the child, who appeared to be approximately three years old.
Law enforcement located and interviewed Sweat, who told them he babysat locally and had access to small children. Sweat confessed to law enforcement that he had images of child sexual abuse on his phone that included children under the age of 10 engaging in oral and anal intercourse. Sweat also admitted to taking photos of the victim and texting them to others.
Sweat was indicted in May 2019 and pleaded guilty in May 2022. In addition to the prison term, Sweat was sentenced to a lifetime of supervised release following his imprisonment. The investigation was conducted by the FBI; the Allen, Texas Police Department; and the Little Rock Police Department. The case was prosecuted by Assistant United States Attorney Kristin Bryant.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Three Federal Operations in Pine Bluff and Little Rock Lead to Dozens of Drug & Firearm ArrestsRead the Press Release
LITTLE ROCK—Three federal investigations culminated in 45 arrests this morning. An investigative focus on the pipeline of drugs and firearms between Pine Bluff and Little Rock resulted in the indictment of 80 individuals, all charged with various federal firearms and drug trafficking charges in multiple indictments that were unsealed today.
Two FBI operations, each focused on a rival gang, were created to address violence and drug trafficking in the corridor between Pine Bluff and Little Rock. The investigations focused on rival gangs responsible for violence throughout central Arkansas, with one operation focused on the EBK or Every Body Killas gang and resulting in the indictment of 35 defendants. The second investigation focused on the Loady Murder Mobb gang and resulted in the indictment of 26 defendants. Three more defendants, Quincy Martez Chambers, D’eandreian Devonte Meadows, and Joseph Riggins, Jr., are charged separately in stand-alone indictments. Three defendants are named in multiple indictments.
A third operation, this one led by the Drug Enforcement Administration (DEA), began in August 2021 when DEA and the North Little Rock Police Department identified street-level methamphetamine and fentanyl dealers in central Arkansas who were connected to the same source of supply. Investigation revealed the drugs were being mailed into Arkansas from California, and these shipments—which included kilogram-quantities of methamphetamine and thousands of pressed fentanyl pills—were then distributed to individuals in Little Rock and Pine Bluff as well as Houston, Texas. This investigation culminated in the indictment of 18 defendants. Manuel Taylor was charged in a separate indictment.
Pine Bluff Police Detective Kevin Collins was shot and killed in October 2020 while serving an arrest warrant on an EBK associate wanted for a homicide in Georgia. Prior to his death, Detective Collins was assisting FBI with intelligence related to criminal activity of these gangs, as well as surveillance, interviews, and arrests of individuals responsible for criminal activity in Pine Bluff. In March 2021, the FBI’s GETROCK Task Force obtained a wiretap and used a total of twelve wiretaps through June 2022 as a source of real-time information to intervene and prevent violence in Pine Bluff, Little Rock, and other communities throughout the state. Law enforcement discovered that the gangs were funding their violent activity primarily through the sale of large quantities of high-grade marijuana. The investigation revealed drug trafficking and travel between Arkansas and Texas, California, Arizona, Georgia, Mississippi, Tennessee, and Oklahoma.
Law enforcement began early this morning by searching for 72 suspects, all of whom were indicted for federal gun and drug trafficking crimes. Of the 80 defendants indicted in the three investigations, 8 of those were already in custody when this morning’s roundup began. In addition to the arrests, during the operation authorities seized 4 firearms, one of which was an AR-style pistol; 2 ounces of cocaine; 1 ounce of crack cocaine; and $30,000 cash.
Prior to today’s FBI arrests in their operations involving the EBK and Loady Murder Mobb gangs, investigators seized 42 firearms, including two machine guns; approximately $775,000 in cash and $428,000 in jewelry; approximately 278 pounds of marijuana, which has an approximate street value of $450,000; 7 ounces of cocaine; 3 ounces of crack cocaine; 1.5 pounds of methamphetamine; and 116 pills containing fentanyl.
Before today’s DEA arrests, investigators seized $146,000 in cash, 10 firearms, 12 pounds of methamphetamine, 1.2 kilograms of powder fentanyl, 600 pressed fentanyl pills, 10 pounds of marijuana, and nine ounces of cocaine.
Twenty-seven fugitives remain after this morning’s arrests. Most of the defendants who were arrested this morning will appear at a later date for arraignment before United States Magistrate Judge Joe J. Volpe.
The FBI conducted their operations with assistance from Arkansas State Police, Arkansas Department of Community Corrections, Little Rock Police Department, North Little Rock Police Department, Pine Bluff Police Department, and Jonesboro Police Department. FBI’s GETROCK Task Force was formed in 2017 in response to the escalation in gang and gun violence in Little Rock. The unit’s investigations and operations are coordinated out of FBI Little Rock’s field office, and GETROCK continues to serve as the clearinghouse for gang-related law enforcement activity in Central Arkansas. Additional support was provided by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; Homeland Security Investigations; United States Postal Inspection Service (USPIS); Arkansas National Guard Counterdrug Joint Task Force; and the Arkansas State Crime Laboratory. These cases are being prosecuted by Assistant United States Attorneys Julie Peters and Amanda Fields with assistance from Cameron McCree.
The Drug Enforcement Administration (DEA) Little Rock District Office conducted their operation with assistance from DEA Riverside, California District Office; USPIS; North Little Rock Police Department; Sherwood Police Department; and Benton Police Department. This case is being prosecuted by Assistant United States Attorney Chris Givens.
These efforts are part of several Organized Crime Drug Enforcement Task Forces (OCDETF) operations. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
An indictment only contains allegations. A defendant is presumed innocent unless and until proven guilty.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter: @EDARNEWS
North Little Rock Man Indicted for ArsonRead the Press Release
LITTLE ROCK— A North Little Rock man was indicted yesterday for setting fire to a local restaurant. Nathan James Hester, 37, was charged by a grand jury in a one-count indictment after an investigation revealed his attempt to set fire to Jim’s Razorback Pizza and his alleged involvement in 12 other fires.
Beginning in late September of this year, a series of approximately 13 fire events took place in the Oak Grove community of Pulaski County and extended into the neighboring city of Maumelle. These fires involved several homes, both occupied and unoccupied, including Hester’s mother’s residence; a church; and the pizza restaurant named in the indictment against Hester.
A complaint filed in federal court on October 25, 2022, alleged that on October 20, 2022, the manager of Jim’s Razorback Pizza in Maumelle was at work that morning when he smelled smoke. The manager walked outside to see the back wall was on fire. The initial investigation cites coals placed against the building as the source of ignition. Security video indicated a man wearing a head covering walking behind the building at the time the fire began. A witness identified the man in the video as Hester, and another witness reported seeing Hester nearby the scene around the time of the incident.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; Maumelle Fire Department; Maumelle Police Department; Oak Grove Fire Department; and the Pulaski County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Erin O’Leary.
An indictment only contains allegations. A defendant is presumed innocent unless and until proven guilty.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Little Rock Fentanyl Dealer Sentenced to 18 1/2 Years in PrisonRead the Press Release
LITTLE ROCK—The final defendant in a 17-person indictment charging a central Arkansas narcotics distribution ring has been sentenced to more than 18 years in prison, concluding the case of a large-scale drug conspiracy that involved multiple kilograms of fentanyl. On Tuesday, Darrell Walls, a/k/a/ “Shawn”, 35, of Little Rock, was sentenced to 223 months in the Bureau of Prisons, to be followed by five years of supervised release. United States District Judge Brian S. Miller sentenced Walls and all other defendants in this case.
Walls was originally indicted along with 16 others on October 2, 2019. On August 25, 2021, Walls pleaded guilty to conspiracy to possess with intent to distribute and distribute between 1.2 and 4 kilograms of fentanyl, a synthetic opioid that is 50-100 times stronger than morphine and potentially deadly in even tiny amounts when ingested illicitly and without a doctor’s supervision.
When he pleaded guilty, Walls admitted that he was part of a conspiracy along with other large-scale narcotics dealers like co-defendants Desmond Kelley, Javion Robinson, and Jaylon Livingston to distribute fentanyl in the greater Little Rock area. The group was responsible for distributing multiple kilograms of fentanyl, in gram-to-ounce amounts, to dozens of identified customers. Walls also completed eight different controlled sales of fentanyl to individuals working with law enforcement.
Every defendant in the case pleaded guilty, with sentences ranging from probation to more than 18 years in prison. In addition to Walls’ 223-month sentence, other sentences of key members of the conspiracy include Kelley receiving 211 months (151 months in this case, consecutive to 60 months in a separate case), Livingston 151 months, Robinson 120 months, Dewon Williams 130 months, Ricky Hinton 110 months, and Robert Johnson 90 months. There is no parole in the federal system.
Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas, announced today’s sentencing. The case was investigated by the Drug Enforcement Administration with assistance from the North Little Rock Police Department and Sherwood Police Department. Assistant United States Attorney Chris Givens prosecuted the case.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Texarkana Physician Found Guilty of Prescribing a Controlled Substance Without a Legitimate Medical PurposeRead the Press Release
TEXARKANA, AR – A federal jury convicted a Texarkana Doctor yesterday on two counts of Distribution of a Schedule II Controlled Substance Without an Effective Prescription and two counts of Distribution of a Schedule V Controlled Substance Without an Effective Prescription.
According to court documents and evidence presented at trial, the Drug Enforcement Administration (DEA), Little Rock District Office (LRDO), Tactical Diversion and Diversion Groups initiated an investigation into Dr. Lonnie Joseph Parker, age 58, of Texarkana, Arkansas in 2018 after receiving complaints from local law enforcement about a suspected pill mill and possible overdose death of a patient. Investigators analyzed prescription drug monitoring data attributed to Dr. Parker, and the investigation revealed Dr. Parker was an over-prescriber of controlled substances, to include opioids, benzodiazepines, and promethazine with codeine cough syrup in the Texarkana area. In the two-year period analyzed, Dr. Parker prescribed approximately 1.2 million dosage units of opioid pain medications, including oxycodone, hydrocodone and fentanyl, to approximately 1,508 patients (approximately 847 dosage units per patient). Dr. Parker also prescribed approximately 16 gallons of Promethazine with Codeine cough syrup to approximately 29 patients during the same time frame. The prescriptions included narcotics written in combination with sedatives, creating a high risk of addiction and overdose to patients.
Parker is scheduled to be sentenced at a later date and faces a maximum penalty of 20 years in prison. He also faces a period of supervised release and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney David Clay Fowlkes made the announcement.
The Drug Enforcement Administration (DEA), Little Rock District Office (LRDO), Tactical Diversion and Diversion Group, the Federal Bureau of Investigation (FBI), the Texarkana Police Department, and the United States Department of Health and Human Services Office of Inspector General (HHS).
Assistant United States Attorney Anne Gardner and Assistant United Sates Attorney Graham Jones prosecuted the case for the United States.
Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov.
Pleasant Plains Man Sentenced to Ten Years in Prison for Attempting to Sell BombsRead the Press Release
LITTLE ROCK—A Pleasant Plains man has been sentenced to ten years in prison for possession of an unregistered firearm after attempting to sell pipe bombs. Wayne Riley, 27, was sentenced yesterday afternoon by United States District Judge Lee P. Rudofsky.
In September 2020, officers conducted a home visit at the residence of Darius Balentine in Newport. Balentine was on active supervision, and officers had learned that he was in possession of a firearm. While searching the home, officers located a .380 pistol and two CO2 bottles containing gun powder and roofing nails, equipped with fuses and designed as explosive devices.
Multiple witnesses confirmed the explosives belonged to Wayne Riley, who had dropped them off at Balentine’s home a few days prior. Investigators obtained text messages in which Riley stated he had ten pipe bombs and wanted to sell them for $100 each or $800 for all ten.
Riley was indicted in July 2021 and pleaded guilty in June 2022. His codefendant, Balentine, was indicted for being a felon in possession of a firearm and will be sentenced at a later date. In addition to the sentence of ten years imprisonment, which is the maximum allowed by law, Riley will serve three years of supervised release after his term of incarceration.
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Newport Police Department; and the Arkansas Department of Community Corrections. The case was prosecuted by Assistant United States Attorney Jordan Crews.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
http://www.justice.gov/edar
Twitter:
@EDARNEWS
Little Rock Man Sentenced to Life in Prison for Sex Trafficking of a MinorRead the Press Release
LITTLE ROCK—A Little Rock man was sentenced to life in prison today for conspiracy to commit sex trafficking of a six-year-old child. DeMarcus George, 28, was sentenced today by United States District Judge Brian S. Miller.
In February 2018, a 6-year-old child was taken to Arkansas Children’s Hospital due to symptoms that were later determined to be caused by several sexually transmitted diseases. The child was interviewed by an FBI forensic interviewer and disclosed that a man, later determined to be DeMarcus George, had raped her. The child also disclosed that another man, later determined to be Mario Waters, had also raped her. The child told interviewers that the rape occurred in a hotel room with a curtain in the middle of the room, and she described a picture hanging on the wall in the hotel room.
Law enforcement was able to locate a hotel in Little Rock that matched the description provided by the minor, including the picture on the wall and the curtain in the room. Financial records from the hotel showed that the minor’s mother had rented a room at the hotel in March 2018 and paid with a credit card. The child has since been removed from the mother’s custody.
Doctors at Arkansas Children’s Hospital determined that it was unlikely the child had obtained each sexually transmitted disease from the same offender and that there were likely multiple offenders. Officers obtained search warrants for George and Waters’ blood and urine. Results indicated that George and Waters tested positive for sexually transmitted diseases that the minor had contracted.
Both George and Waters were indicted in September 2019, and both pleaded guilty in November 2021. Both defendants admitted in court that they had sexual contact with the minor and were involved in trafficking her with others. Waters is awaiting sentencing.
The case was investigated by the FBI and the Little Rock Police Department. Assistant United States Attorneys Kristin Bryant and Allison Bragg are prosecuting the case.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Jonesboro Woman Sentenced to 20 Months in PrisonRead the Press Release
LITTLE ROCK—A Jonesboro woman was sentenced to prison for misusing more than $143,000 in disability payments intended for her injured veteran husband. Brandi Goldman, 49, was sentenced to 20 months in federal prison today by United States District Judge James M. Moody, Jr.
In 2013, Goldman was married to a United States Army Reservist who suffered a severe traumatic brain injury in a service-connected accident. As a result of this injury, her husband had many serious physical challenges, and Goldman was appointed as his guardian. Her husband began receiving disability payments, and Goldman signed a fiduciary agreement with Veterans Affairs (VA) detailing the terms of her management of his finances.
In part, the agreement stated that funds were to be used for the beneficiary and that Goldman was not permitted to borrow, loan, or gift money belonging to the beneficiary. When Goldman officially took over her husband’s accounts in April 2015, through November 2017 after her activity was reported to authorities, she received $258,613.54 in VA disability payments and $36,000 in Social Security payments. During that timeframe, she withdrew $199,649.30 in cash and accrued about $900 in ATM and overdraft fees.
Goldman admitted to spending much of the cash to fund her methamphetamine habit, spending $150 on methamphetamine two to three times per week. She also admitted that five other people moved into the residence with her and her husband, none of whom paid rent or contributed to expenses, some of whom she regularly gave cash. Goldman also admitted paying $68,000 in cash for another home, furnishings for the home, a vehicle, and a motor home. She told investigators she purchased vehicles for several people and gave money to her daughters as well as her husband’s parents.
“To steal from a veteran who is incapacitated is an egregious crime. However, that this crime was committed by a fiduciary is particularly pathetic,” said Special Agent in Charge Jeffrey Breen of the Department of Veterans Affairs Office of Inspector General’s South Central Field Office. “Today’s sentence should send a clear message that the VA OIG will vigorously investigate those who would exploit our nation’s most vulnerable veterans.”
A grand jury indicted Goldman in July 2020 with one count of misappropriation by a fiduciary and one count of theft of government funds. In June 2022, she pleaded guilty to misappropriation by a fiduciary in exchange for the other count being dismissed. In addition to prison, Judge Moody sentenced Golden to 3 years of supervised release and ordered her to pay $143,000 in restitution.
The case was investigated by the Veterans Affairs – Office of the Inspector General and the Social Security Administration – Office of the Inspector General. Assistant United States Attorney Liza Brown prosecuted the case for the United States.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Former Missouri Health Care Charity Executives Plead Guilty to Multimillion-Dollar Bribery and Embezzlement SchemeRead the Press Release
Two former executives of a Springfield, Missouri-based charity pleaded guilty yesterday to their roles in a multimillion-dollar public corruption scheme that involved embezzlement and bribes paid to multiple elected public officials in the state of Arkansas.
According to court documents, Bontiea Bernedette Goss, 63, and her husband, Tommy “Tom” Ray Goss, 66, were high-level executives at Preferred Family Healthcare Inc., a charity that provided a variety of services to individuals in Missouri, Arkansas, Kansas, Oklahoma, and Illinois, including mental and behavioral health treatment and counseling, substance abuse treatment and counseling, employment assistance, aid to individuals with developmental disabilities, and medical services. In exchange for the bribes and kickbacks offered and paid by the Gosses and other co-conspirators, elected state officials in Arkansas provided favorable legislative and official action for the charity, including, but not limited to, directing funds from the state’s General Improvement Fund (GIF).
Under the terms of their respective plea agreements, the Gosses must forfeit to the government up to $4.3 million as determined by the court at their sentencing.
Bontiea Goss pleaded guilty to conspiracy to pay bribes and kickbacks to elected public officials in Arkansas. Tom Goss pleaded guilty to participating in the conspiracy by embezzling funds from the charity, as well as by paying bribes and kickbacks to elected public officials in Arkansas. Tom Goss also pleaded guilty to one count of aiding and assisting in the preparation and presentation of a false tax return. Bontiea Goss faces up to five years in federal prison without parole. Tom Goss faces up to eight years in federal prison without parole. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Earlier this year, Preferred Family Healthcare agreed to pay more than $8 million in forfeiture and restitution to the federal government and the state of Arkansas under the terms of a non-prosecution agreement, which acknowledges the criminal conduct of its former officers and employees.
Several former executives from the charity, former members of the Arkansas state legislature, and others have pleaded guilty in federal court as part of the long-running, multi-jurisdiction, federal investigation including the following:
- Former Chief Executive Officer, Marilyn Luann Nolan of Springfield, Missouri, pleaded guilty in November 2018 to her role in a conspiracy to embezzle and misapply the funds of a charitable organization that received federal funds.
- Former Director of Operations and Executive Vice President Robin Raveendran, of Little Rock, Arkansas, pleaded guilty in June 2019 to conspiracy to commit bribery concerning programs receiving federal funds.
- Former executive and head of clinical operations Keith Fraser Noble, of Rogersville, Missouri, pleaded guilty in September 2019 to concealment of a known felony.
- Former employee and head of operations and lobbying in Arkansas, Milton Russell Cranford, aka Rusty, of Rogers, Arkansas, was sentenced to seven years in federal prison without parole after pleading guilty to one count of federal program bribery.
- Political consultant Donald Andrew Jones, aka D.A. Jones, of Willingboro, New Jersey, pleaded guilty in December 2017 to his role in a conspiracy from April 2011 to January 2017 to steal from an organization that receives federal funds.
- Former Arkansas State Senator Jeremy Hutchinson, of Little Rock, Arkansas, pleaded guilty in June 2019 to conspiracy to commit federal program bribery.
- Former Arkansas State Representative Eddie Wayne Cooper, of Melbourne, Arkansas, pleaded guilty in February 2018 to conspiracy to embezzle more than $4 million from Preferred Family Healthcare.
- Former Arkansas State Senator and State Representative Henry “Hank” Wilkins IV pleaded guilty to conspiracy to commit federal program bribery and devising a scheme and artifice to defraud and deprive the citizens of the state of Arkansas of their right to honest services.
Senior Litigation Counsel Marco A. Palmieri and Trial Attorney Jacob Steiner of the Criminal Division’s Public Integrity Section; Supervisory Assistant U.S. Attorney Randall Eggert and Assistant U.S. Attorney Shannon T. Kempf for the Western District of Missouri; Assistant U.S. Attorney Stephanie Mazzanti for the Eastern District of Arkansas; and Assistant U.S. Attorney Steven M. Mohlhenrich for the Western District of Arkansas are prosecuting the separate criminal cases.
IRS Criminal Investigation, FBI, and the Offices of the Inspectors General from the Departments of Justice, Labor, and the Federal Deposit Insurance Corporation (FDIC) investigated the cases.
This is a combined prosecution with the Criminal Division’s Public Integrity Section, the Western District of Missouri, the Eastern District of Arkansas, and the Western District of Arkansas.
Five "New Aryan Empire" Associates Sentenced to PrisonRead the Press Release
LITTLE ROCK—Five defendants were sentenced yesterday for their involvement in crimes carried out on behalf of a white supremacist gang. Each defendant previously pleaded guilty to various crimes associated with the New Aryan Empire (NAE), a white supremacist organization that began as a prison gang and functioned as a drug trafficking organization.
Russell Robinson, 35, of Dover, Arkansas, was sentenced to 204 months imprisonment for kidnapping in aid of racketeering, assault with a dangerous weapon in aid of racketeering, and maiming in aid of racketeering. The remaining four defendants were sentenced for conspiracy to distribute and possess with intent to distribute methamphetamine: Jeffrey Howell, 38, of Russellville, was sentenced to 188 months imprisonment, Richard Hampton, 42, of Pottsville, and Tiffany Parker, 42, of Russellville, were both sentenced to 96 months imprisonment, and April Teeter, 40, of Russellville, was sentenced to 90 months imprisonment. In addition to prison time, United States District Judge Brian S. Miller also sentenced each defendant to five years of supervised release following their terms of imprisonment.
The investigation began in 2016, when local and federal agencies initiated a joint investigation to identify, infiltrate, and dismantle drug trafficking organizations in Russellville. Agents identified multiple individuals who were trafficking methamphetamine in the Pope County area.
In June 2017, NAE members and associates kidnapped two individuals that they suspected of cooperating with law enforcement, which violated the rules of NAE. One victim was held against their will and subsequently beaten and stabbed multiple times. While the victim was held to the ground, another NAE member heated a knife with a torch and burned the victim’s cheek, leading to permanent disfigurement. Another victim was kidnapped at the same time and restrained and repeatedly beaten.
The overall indictment in this case charged more than 50 people from the Pope County area with violations of the Racketeer Influenced and Corrupt Organizations Act, Violent Crimes in Aid of Racketeering, and numerous gun and drug violations. The case is named “To The Dirt,” a reference to the NAE slogan referring to the rule that members must remain in the NAE until they die. The charges allege acts involving attempted murder, kidnapping, maiming, and conspiracy to distribute methamphetamine. Of the 55 total defendants charged in “Operation ‘To The Dirt,’” 53 defendants have pleaded guilty, 1 defendant was found guilty at trial, and 35 of those defendants have already been sentenced to prison terms: Courtney Talley 94 months; Corey A. Ford 45 months, Henri T. Keener, II 84 months, Jared Dale, 84 months; Britanny Conner, 120 months; Keith Savage, 120 months; Joseph Pridmore, 150 months; Daniel Adame, 262 months; Justin Howell, 155 months; James George, 70 months; Amos Adame, 121 months; and Skippy Don Sanders, 262 months; Andrew Syverson 151 months; Amanda Rapp 262 months; Jayme Short 90 months; Cory S. Donnelly 188 months; Wesley Pierson 120 months; Ralph Ross 36 months; Jeffrey L. Knox 180 months; Robert Chandler 65 months; Timothy Ferguson 180 months; Paula S. Enos 180 months; Heath Kizer 96 months; Christopher S. Helms 102 months; David D. Singleton 131 months; Kathrine R. Ross 60 months BOP; Courtney Talley 94 months; Corey A. Ford 45 months; Henri T. Keener, II 84 months; April Howell 198 months; Kevin M. Long 369 months; James Scott Oliver 327 months; and Wesley S. Gullett 420 months. The remaining defendant, Troy L. Loadholt, remains a fugitive.
The investigation was conducted by ATF, DEA, the United States Postal Inspection Service, the Pope County Sheriff’s Office, Fifth Judicial Drug Task Force, and the Russellville Police Department, with assistance from the FBI.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Former Craighead County Clerk Sentenced to 57 Months in Prison for Wire FraudRead the Press Release
LITTLE ROCK—Former Craighead County Clerk Jacob Kade Holliday was sentenced to 57 months in federal prison today for taking more than $1.5 million in county money for his personal use. Holliday, 34, of Jonesboro, was sentenced by United States District Court Judge James M. Moody, Jr., who also imposed three years of supervised release after Holliday completes his prison term.
In June 2020, Craighead County officials reported that a theft had occurred from the Craighead County Clerk’s office. The bank that managed the Clerk’s office account had flagged suspicious activity, and auditors concluded that approximately $1,579,057.03 was missing and had been moved to Holliday’s personal banking accounts.
Law enforcement interviewed Holliday, who admitted to taking the money to fund his businesses: Holliday Development and Management, LLC, and Total Healthcare, LLC, both of which operated restaurants and coffee shops in Jonesboro. Holliday told investigators he planned to pay the money back, but once the COVID-19 pandemic caused most of his businesses to close, he could not replace the money.
Holliday was indicted in December 2020, when a grand jury charged him with 11 counts of wire fraud for each withdrawal he made from the county account. He pleaded guilty in February of this year and acknowledged that his method was to make a transfer from the county account to one of his personal accounts and then get a cashier’s check from his personal account for the same amount. He pleaded guilty to Count 1 of the indictment, which charged him with wire fraud for his first fraudulent transfer of $101,782.97 on January 29, 2020. In his plea agreement, Holliday agreed to pay $1,579,057.03 in restitution to Craighead County.
Holliday is currently serving a 120-month sentence in a state case for forgery, and Judge Moody ordered that his federal sentence will not begin until the state sentence is completed. The FBI, Arkansas State Police, and Craighead County Sheriff’s Department conducted the investigation. Assistant United States Attorney Allison W. Bragg prosecuted the case.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Little Rock Man Who Fled After Shooting Sentenced to 25 Years in Prison for Possessing a Firearm as a FelonRead the Press Release
LITTLE ROCK—A Little Rock man has been sentenced to 300 months in federal prison for being a felon in possession of a firearm. United States District Judge Brian S. Miller sentenced Bradley Clayton Walker, 39, to the 25-year term of imprisonment today. Judge Miller also sentenced Walker to five years of supervised release.
In January 2021, Walker shot a man in Bryant in the chest and fled the scene in a white Chevrolet pickup truck. Law enforcement identified the vehicle as belonging to Walker, and officers waited near Walker’s home. At the time of the shooting, Walker lived in Conway. Walker saw the officers and fled. Driving over 80 miles per hour through residential neighborhoods in Conway, Walker continued into Perry County, where he was ultimately stopped and taken into custody.
In the vehicle, officers located an empty 9mm magazine under the driver’s seat and a Glock Model 26 9mm handgun, which Walker had used in the earlier shooting, loaded with 23 rounds in an extended magazine. The search also revealed over 50 grams of methamphetamine as well as a bag containing fentanyl.
Walker’s sentence was based on the offense as well as his criminal history, which classifies him as an armed career criminal and increased his sentencing range. Walker has a prior federal conviction for being a felon in possession of a firearm as well as prior convictions for possession of cocaine, aggravated battery, and robbery, among numerus other offenses. In 2016, in Kansas, Walker shot a victim in the face, causing near-fatal injuries, during a robbery of some electronic devices.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Bryant Police Department, and Conway Police Department. The case was prosecuted by Assistant United States Attorney Jordan Crews.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Marmaduke Woman Sentenced to a Year of Home Confinement for False Social Security StatementsRead the Press Release
LITTLE ROCK—A Marmaduke woman who fraudulently obtained more than $96,000 in Social Security Administration funds was sentenced yesterday afternoon for making false statements to the United States government. United States District Court Judge Lee Rudofsky sentenced Tammy Jean Hogan, 58, to five years of probation with one year to be served in home confinement. Judge Rudofsky also ordered Hogan to pay a $9,600 fine and $96,397 in restitution as well as perform 400 hours of community service.
In February 2020, a referral to the Social Security Administration Office of the Inspector General (OIG) Cooperative Disability Investigations Unit alleged that Hogan, who served as representative payee for her husband, was concealing numerous properties the couple owned from 2009 through 2021. Investigation revealed that Hogan intentionally concealed household income and resources in order to maintain her husband’s eligibility from August 2009 through March 2021, resulting in $96,397 being paid to Hogan.
A grand jury indicted Hogan in May 2021, and she pleaded guilty in April 2022. The investigation was conducted by the Social Security Administration OIG, and the case was prosecuted by Assistant United States Attorney Amanda Jegley.
# # #
This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Helena-West Helena Man Sentenced to More Than 5 Years in Prison for Providing Support to Terrorist OrganizationRead the Press Release
LITTLE ROCK—A Helena-West Helena man has been sentenced to 65 months in prison for providing material support to a terrorist organization. Bilal Al-Rayanni, 31, a naturalized citizen originally from Yemen, was sentenced Friday by United States District Judge Susan Webber Wright. Judge Wright also sentenced Al-Rayanni to 10 years of supervised release following imprisonment.
In July 2014, Al-Rayanni traveled from the United States to Yemen to visit his family, where he stayed until January 2015. While Al-Rayanni was in Yemen, a terrorist organization known as Al Qa’ida in the Arabian Peninsula (AQAP), also known as Ansar al-Sharira (AAS), began to sweep south from the capital of Sanaa in armed conflict with Houthi rebels. Al-Rayanni admitted to federal agents that while he was in Yemen, he drove a vehicle in an armed convoy as part of an AAS recruiting mission.
Images from Al-Rayanni’s time in Yemen include him with a dagger at his waist bearing the AAS emblem, images of him with the ISIS flag, and images of him in front of a convoy vehicle with an ammunition belt, two rifles, and an AK-47 automatic weapon resting against the vehicle. Al-Rayanni admitted to federal authorities that he drove an AAS recruiter from village to village to recruit fighters to oppose the Houthis.
"While overseas, Bilal Al-Rayanni willingly volunteered to serve as a driver in an armed AQAP/AAS recruitment convoy,” said FBI Little Rock Special Agent in Charge James A. Dawson. “His lengthy federal prison sentence should serve as a warning to other potential supporters of designated foreign terrorist organizations. FBI Little Rock investigators on the Joint Terrorism Task Force remain dedicated to investigating and preventing acts of domestic and international terrorism which target our Arkansas communities.”
This case was investigated by the FBI Joint Terrorism Task Force and prosecuted by Assistant United States Attorney Stacy Williams.
# # #
This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Four Defendants Indicted in Little Rock Mail TheftRead the Press Release
LITTLE ROCK—Four defendants have been indicted for their alleged involvement in stealing mail from mail receptacles. Byrannia Burks, 20, James Miller, 26, Kobe Powell, 24, and Eshawn Tucker, 21, all of Little Rock, have been charged by a grand jury with possession of stolen mail. Tucker and Burks were also charged with unlawful possession of a mail receptacle key.
Miller, Powell, and Tucker were all previously charged in criminal complaints filed July 18. All three, along with Burks, were subsequently indicted. Powell appeared in court today, and Miller, Tucker, and Burks will be arraigned by United States Magistrate Judge J. Thomas Ray later this month.
“The U.S. Postal Inspection Service will spare no effort to solve crimes affecting the U.S. Mail, the Post Office and its customers,” said Thomas Noyes, Inspector in Charge of the Fort Worth Division. “It’s unfortunate when mail thefts occur, but these arrests reflect the ongoing efforts and resolve Postal Inspectors maintain to arrest those responsible. We thank our federal, state and local law enforcement partners for their assistance, in addition to the U.S. Attorney’s Office for their commitment to prosecuting cases of this nature.”
“The Secret Service along with our partners in federal and local law enforcement remain committed to aggressively defending and protecting individuals, companies and other entities from criminal actors that steal, defraud and wreak havoc on so many across the country,” said Special Agent in Charge Allen Bryant of the U.S. Secret Service Little Rock Field Office. “The Secret Service believes that building trusted partnerships between all levels of law enforcement is a proven model for success in prosecuting these types of cases, and we thank the United States Postal Inspection Service, the Little Rock Police Department, the Arkansas State Police, and the U.S. Attorney’s Office for their dedication to this important mission.”
“Collectively, members of our Financial Crimes Unit, U.S. Postal Inspection Service, and Secret Service have been able to identify, disrupt and now federally indict those taking the opportunity to steal from locations deemed impenetrable by society,” stated Little Rock Police Department Assistant Chief Wayne Bewley. “The Little Rock Police Department values the working relationship with our federal partners, and these indictments display the work of many collaborative efforts.”
If convicted, each defendant faces potential penalties for possession of stolen mail of not more than five years imprisonment and for unauthorized possession of a mail receptacle key of not more than 10 years imprisonment. All charges carry a fine of not more than $250,000 and not more than three years of supervised release.
The case is being investigated by the United States Secret Service, the United States Postal Inspection Service, Arkansas State Police, and the Little Rock Police Department. An indictment only contains allegations. A defendant is presumed innocent unless and until proven guilty.
# # #
This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Little Rock Lawyer Pleads Guilty in $11.5 Million Fraud CaseRead the Press Release
LITTLE ROCK—A Little Rock lawyer has pleaded guilty to his involvement in a scheme to defraud the U.S. Department of Agriculture out of more than $11.5 million that was intended to benefit farmers who had been discriminated against. Everett Martindale, 75, pleaded guilty to conspiracy to commit mail fraud this afternoon before Chief United States District Judge D. Price Marshall.
Martindale admitted in court today that he acted as the legal representative for claimants who filed false claims asserting they were discriminated against when they tried to get assistance from USDA for their farming operations. Martindale signed certifications that said he investigated the claims, when, in fact, he did not. The proceeds from the false claims were mailed to Martindale, and he took a portion of the money as an attorney’s fee. He also played an essential role in the process that allowed other defendants in the case to take a more substantial portion of the funds.
Martindale was the last defendant to enter a plea in the case. Lynda Charles, 72, of Hot Springs; Rosie Bryant, 74, of Colleyville, Texas; Delois Bryant, 75, of North Little Rock; and Brenda Sherpell, 72, of Gainesville, Texas, each pleaded guilty on July 6, 2022, to conspiracy to commit mail fraud and to defraud the Internal Revenue Service. Niki Charles, 49, who is the daughter of Lynda Charles, pleaded guilty on Tuesday to conspiracy to commit mail fraud based on her role in notarizing affidavits that she knew to be false and soliciting people to file false claims.
The sisters also admitted that they hired a tax preparer to falsify tax returns, resulting in failure to report over $4.6 million to the Internal Revenue Service. That tax preparer, Jerry Green, pleaded guilty in January 2021. Judge Marshall will sentence all defendants at a later date.
As documented in plea agreements, the defendants submitted claims under two programs: the Black Farmers Discrimination Litigation (BFDL) settlement and the Hispanic and Women Farmers and Ranchers (HWFR) claim program. The BFDL settlement resulted from a class action lawsuit filed in 1997 in which a group of black farmers claimed they had been discriminated against when they applied for farm credit, credit servicing, or farm benefits from USDA. Similarly, the HWFR claim program was created after groups of Hispanic and women farmers filed separate lawsuits against USDA, also alleging discrimination in their farm benefit programs.
Both BFDL and HWFR resulted in a claims process where farmers who could show they had applied for participation in a USDA benefit program and believed they had been discriminated against could make a claim for financial relief. A successful claim resulted in an award of $62,500. Of that, $50,000 would be made payable to the claimant, and $12,500 would be transferred directly to the Internal Revenue Service as a tax withholding. Altogether, the sisters were involved with 192 claims, almost all of which were successful, resulting in a loss of over $11.5 million. The claims were false because the claimants had not suffered discrimination and, in most cases, had not even attempted to farm.
The indictment alleged that Martindale would deposit claim checks into his law firm trust account, issue a check from that trust account to the claimant, and withhold his attorney fee. For both BFDL and HWFR, attorney fees were restricted to $1,500 per claimant. The four sisters entered an agreement with Martindale in which they would split the attorney fee. The sisters, with Martindale’s help, also demanded and received additional money from the claimants themselves.
The money received from a claim was income that should have been reported on the claimant’s tax return. The sisters and their accountant, Green, admitted that Green provided tax preparation services for the claimants they had recruited and that Green falsified the tax returns in order to create a tax refund.
Three of the sisters—Lynda Charles, Rosie Bryant, and Delois Bryant—filed false tax returns of their own and used money from the conspiracy to purchase homes and other properties, including a Chevrolet van, and a Mercedes G550. Pursuant to the plea agreement, the sisters are required to relinquish any claim to the vehicles and to repay the fraud money they used to purchase properties. The money is due by the time they are sentenced, which has not yet been scheduled.
The investigation is being conducted by USDA-OIG and IRS Criminal Investigations with assistance from the United States Marshals Service and the United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorneys Cameron McCree, Bart Dickinson, and Amanda Fields.
# # #
This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Fifth Defendant Pleads Guilty in $11.5 Million Fraud CaseRead the Press Release
LITTLE ROCK—An England, Arkansas woman has pleaded guilty to her involvement in a scheme to defraud the U.S. Department of Agriculture out of more than $11.5 million that was intended to benefit farmers who had been discriminated against. Niki Charles, 49, pleaded guilty to conspiracy to commit mail fraud today before Chief United States District Judge D. Price Marshall.
Charles admitted in court today that she and others solicited people to file false claims asserting they were discriminated against when they tried to get assistance from USDA for their farming operations. Charles said she verified statements from corroborating witnesses who submitted affidavits to support the claims, but none of those witnesses actually appeared before Charles. Those actions resulted in $4.5 million in loss, an amount Charles agreed to repay.
Four other defendants, all of whom are sisters, have pleaded guilty in this case. Lynda Charles, 72, of Hot Springs; Rosie Bryant, 74, of Colleyville, Texas; Delois Bryant, 75, of North Little Rock; and Brenda Sherpell, 72, of Gainesville, Texas, each pleaded guilty on July 6, 2022, to conspiracy to commit mail fraud and to defraud the Internal Revenue Service. A sixth defendant, Everett Martindale, worked as an attorney and acted as the legal representative for most of the claimants that the five women recruited. Martindale is set for trial on August 30, 2022.
The sisters also admitted that they hired a tax preparer to falsify tax returns, resulting in failure to report over $4.6 million to the Internal Revenue Service. That tax preparer, Jerry Green, pleaded guilty in January 2021. Judge Marshall will sentence those who pleaded guilty at a later date.
As documented in plea agreements, the defendants submitted claims under two programs: the Black Farmers Discrimination Litigation (BFDL) settlement and the Hispanic and Women Farmers and Ranchers (HWFR) claim program. The BFDL settlement resulted from a class action lawsuit filed in 1997 in which a group of black farmers claimed they had been discriminated against when they applied for farm credit, credit servicing, or farm benefits from USDA. Similarly, the HWFR claim program was created after groups of Hispanic and women farmers filed separate lawsuits against USDA, also alleging discrimination in their farm benefit programs.
Both BFDL and HWFR resulted in a claims process where farmers who could show they had applied for participation in a USDA benefit program and believed they had been discriminated against could make a claim for financial relief. A successful claim resulted in an award of $62,500. Of that, $50,000 would be made payable to the claimant, and $12,500 would be transferred directly to the Internal Revenue Service as a tax withholding. Altogether, the sisters were involved with 192 claims, almost all of which were successful, resulting in a loss of over $11.5 million. The claims were false because the claimants had not suffered discrimination and, in most cases, had not even attempted to farm.
The indictment alleges that Martindale would deposit claim checks into his law firm trust account, issue a check from that trust account to the claimant, and withhold his attorney fee. For both BFDL and HWFR, attorney fees were restricted to $1,500 per claimant. The indictment alleges that the four sisters entered an agreement with Martindale in which they would split the attorney fee. The sisters also demanded and received additional money from the claimants themselves.
The money received from a claim was income that should have been reported on the claimant’s tax return. The sisters and their accountant, Green, admitted that Green provided tax preparation services for the claimants they had recruited and that Green falsified the tax returns in order to create a tax refund.
Three of the sisters—Lynda Charles, Rosie Bryant, and Delois Bryant—filed false tax returns of their own and used money from the conspiracy to purchase homes and properties, a Chevrolet van, and a Mercedes G550. Pursuant to the plea agreement, the sisters are required to relinquish any claim to the vehicles and to repay the fraud money they used to purchase properties. The money is due by the time they are sentenced, which has not yet been scheduled.
The investigation is being conducted by USDA-OIG and IRS with assistance from the United States Marshals Service and the United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorneys Cameron McCree, Bart Dickinson, and Amanda Fields.
# # #
This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Conway Man Sentenced for Importation and Possession of Illegally Taken WildlifeRead the Press Release
LITTLE ROCK-A Conway man has been sentenced for importing and possessing illegally taken wildlife. Jackson Roe, 27, was sentenced on Monday afternoon by Chief United States District Judge D. Price Marshall, Jr., to three years probation and 150 hours of community service.
In August 2015, the United States Fish and Wildlife Service received an anonymous tip about the illegal activity of a reptile hobbyist who sold and transported various reptiles into and out of the United States. Through undercover conversations with this individual, located in China, agents learned that he was shipping rare and endangered animals to an individual named Jackson Roe. Wildlife inspectors intercepted a package addressed to Roe that contained two live Chinese giant salamanders—an endangered species, in plastic jars, with wet moss. There were no holes in the box for air and no documents in the package.
Roe admitted to investigators that he had illegally purchased several live amphibians from a Chinese dealer he met on Facebook. He stated he paid $450 for each salamander, and that he knew they were protected and expected to become extinct in the next ten years. In total, Roe received seven packages shipped from Hong Kong, which included six Chinese giant salamanders, a Vietnamese leaf turtle, an Indian roofed turtle, and a Chinese big-headed turtle. Roe also informed agents that he owned a Nile crocodile, a Morelet’s crocodile, and an American alligator, all of which were seized later that day by the Arkansas Game and Fish Commission.
The case was investigated by the U.S. Fish and Wildlife Service and prosecuted by Assistant United States Attorney Edward O. Walker.
# # #
This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Federal Prosecutor Retires After 35+ YearsRead the Press Release
LITTLE ROCK-Pat Harris, a longtime federal prosecutor, has announced his retirement from the United States Attorney’s Office (USAO). Harris, who has held various roles at the USAO including Acting United States Attorney, began as a law clerk in 1983.
Harris returned to the USAO in 1985 as a Special Assistant United States Attorney and the Law Enforcement Coordinator and became an Assistant United States Attorney in 1987. Since that time, he has been a true leader through his tireless work in the pursuit of justice.
Harris became Criminal Chief in May 2007 and remained in that position until February 2013, when he was appointed First Assistant United States Attorney, second in command of the entire office, and remained in this role until becoming Acting United States Attorney in March 2017, when he served and led the office. He has also served as Professional Responsibility Officer, Organized Crime Chief, Violent Crime Coordinator, and is currently Senior Litigation Counsel.
In addition to his leadership roles as an attorney, Harris took on numerous other responsibilities during his time in federal service. He served as Acting Administrative Officer, and in that capacity filled 13 vacancies at the USAO. He volunteered with Evaluation and Review Staff (EARS) and participated in 25 evaluations of other offices across the country, often serving as Team Leader.
Harris played a major role in reducing gang violence in central Arkansas in the 1990s through his dedicated pursuit of violent crime prosecutions. He received the Attorney General’s Director’s Award in 1996 and 2000 for superior performance as an AUSA. Harris has prosecuted some of the most complex cases in the district, including death penalty cases, large drug trafficking organizations, and significant fraud cases.
Harris’ courtroom skills and experience have been an invaluable asset, and one that he often shared as a mentor to other prosecutors. His unique ability to motivate, encourage, and inspire others had led to an increased sense of family among his coworkers at the USAO.
The United States Attorney’s Office celebrated Harris’ retirement with an event on Thursday, when more than one hundred friends and colleagues gathered to reflect on Harris’ accomplishments and contributions to the federal justice system. His dedication and expertise will be sorely missed, and the USAO wishes him well.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Jury Convicts Little Rock Man for Distributing Fentanyl That Resulted in DeathRead the Press Release
LITTLE ROCK—A federal jury convicted a Little Rock man who distributed the fentanyl that resulted in a person’s overdose death in early 2021. Following a three-day trial and after one hour of deliberation, the jury convicted Jemel Foster, 32, of four federal drug and firearm crimes, including distribution of fentanyl that resulted in death.
Foster was also convicted of possessing fentanyl with intent to distribute it, being a felon in possession of a firearm, and possessing a firearm in furtherance of a drug-trafficking crime.
The jury returned the verdict Wednesday evening to United States District Court Judge Billy Roy Wilson. Judge Wilson will sentence Foster, who remains in federal custody, at a later date. The statutory minimum sentence for the distribution of fentanyl resulting in death is 20 years, plus an additional minimum of five years for possessing the firearm in furtherance of a drug-trafficking crime.
“Drug crime is violent crime. We are very pleased with this verdict that demonstrates the importance of holding drug dealers accountable for the harm they inflict upon others,” stated United States Attorney Jonathan D. Ross. “The senseless death of a young woman is a tragic example of just how violent drug crimes can be, and the defendant who sold her the fentanyl that took her life will now be held accountable for his actions. Thank you to our law enforcement partners who have helped achieve justice in this case.”
On July 6, 2021, a grand jury charged Foster in a superseding indictment with the four counts he took to trial, all of which related to two January evenings in 2021.
The evidence at trial revealed that on the evening of January 11, 2021, a woman purchased fentanyl from Foster around 7:22 p.m. in the parking lot of a Little Rock Walgreen’s store. According to testimony from the medical examiner who conducted her autopsy, the woman died from a fatal dose of fentanyl around midnight that evening at her mother’s nearby home. After discovering her body the next morning, the woman’s family contacted the Little Rock Police Department, and eventually the Drug Enforcement Administration (DEA). At trial, the DEA agents involved in the case explained how they were able to identify Foster as the source of the fatal fentanyl from data in the victim’s phone.
The DEA, believing Foster would not be aware the woman had died, used the victim’s phone to contact Foster on January 12, 2021, and ask if he had any more fentanyl for sale. Foster agreed to meet at the same Walgreen’s parking lot the person he believed would be the woman who purchased fentanyl from him the night before. When Foster arrived at the parking lot, the DEA arrested him and located eight bags of fentanyl in his pants, totaling approximately four grams, and a firearm in his vehicle.
At trial, the medical examiner testified that there is no safe dosage of illicit fentanyl, and tiny amounts of the substance can kill a person nearly immediately. The medical examiner also located two bags of fentanyl in the victim’s clothing that exactly matched the eight bags of fentanyl Foster had in his pants on January 12.
“Fentanyl is an extremely dangerous opioid that has led to numerous overdose deaths across the country, including here in our state,” DEA Assistant Special Agent in Charge Jarad Harper said. “The DEA, along with our local, state, and federal partners have been, and will continue to aggressively investigate and arrest those individuals who profit from the pain and suffering of others. This conviction demonstrates law enforcement’s devotion to working collaboratively and aggressively to combat drug trafficking.”
The statutory penalties for Foster’s convictions are: distribution of fentanyl resulting in death, 20 years to life imprisonment; possession of fentanyl with intent to distribute, up to 20 years’ imprisonment; felon in possession of a firearm, up to 10 years’ imprisonment; and possession of a firearm in furtherance of a drug-trafficking crime, five years to life imprisonment, consecutive to any other sentence imposed. The drug offenses carry additional penalties of up to a $1,000,000 fine and at least three years of supervised release. The firearm offenses include penalties of up to a $250,000 fine and up to three years of supervised release.
The investigation was conducted by DEA, with assistance from the Little Rock Police Department and Arkansas State Police. The case was prosecuted by Assistant United States Attorneys Chris Givens and Benecia Moore.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Four Defendants Plead Guilty in $11.5 Million Fraud CaseRead the Press Release
LITTLE ROCK—Four women, all sisters, have pleaded guilty to their involvement in defrauding the U.S. Department of Agriculture out of over $11.5 million that was intended to benefit farmers who had been discriminated against. Lynda Charles, 72, of Hot Springs; Rosie Bryant, 74, of Colleyville, Texas; Delois Bryant, 75, of North Little Rock; and Brenda Sherpell, 72, of Gainesville, Texas, each pleaded guilty to conspiracy to commit mail fraud and to defraud the Internal Revenue Service today before Chief United States District Judge D. Price Marshall. Chief Judge Marshall will sentence the defendants at a later date.
The four defendants admitted in court today that from 2008 until 2017, they solicited people to file false claims asserting they were discriminated against when they tried to get assistance from USDA for their farming operations. A fifth defendant, Niki Charles, is the daughter of Lynda Charles. A sixth defendant, Everett Martindale, worked as an attorney and acted as the legal representative for most of the claimants that the five women recruited. Both Niki Charles and Martindale are set for trial on August 30, 2022.
The sisters also admitted today that they hired a tax preparer to falsify tax returns, resulting in failure to report over $4.6 million to the Internal Revenue Service. That tax preparer, Jerry Green, pleaded guilty in January 2021.
As documented in plea agreements, the defendants submitted claims related to two matters: the Black Farmers Discrimination Litigation (BFDL) settlement and the Hispanic and Women Farmers and Ranchers (HWFR) claim program. The BFDL settlement resulted from a class action lawsuit filed in 2008 in which a group of black farmers claimed they had been discriminated against when they applied for farm credit, credit servicing, or farm benefits from USDA. Similarly, the HWFR litigation originated when groups of Hispanic and women farmers filed separate lawsuits against USDA, also alleging discrimination in their farm benefit programs.
Both BFDL and HWFR resulted in a claims process where farmers who could show they had applied for participation in a USDA benefit program and believed they had been discriminated against could make a claim for financial relief. A successful claim resulted in an award of $62,500. Of that, $50,000 would be made payable to the claimant, and $12,500 would be transferred directly to the Internal Revenue Service as a tax withholding. Altogether, the sisters were involved with 192 claims, almost all of which were successful, resulting in a loss of over $11.5 million. The claims were false because the claimants had not suffered discrimination and, in most cases, had not even attempted to farm.
The indictment alleges that Martindale would deposit claim checks into his law firm trust account, issue a check from that trust account to the claimant, and withhold his attorney fee. For both BFDL and HWFR, attorney fees were restricted to $1,500 per claimant. The indictment alleges that the four sisters entered an agreement with Martindale in which they would split the attorney fee. The sisters also demanded and received additional money from the claimants themselves.
The money received from a claim was income that should have been reported on the claimant’s tax return. The sisters and Green admitted that Green provided tax preparation services for the claimants they had recruited and that Green falsified the tax returns in order to create a tax refund.
Three of the sisters—Lynda Charles, Rosie Bryant, and Delois Bryant—filed false tax returns of their own and used money from the conspiracy to buy numerous homes and other real properties, a Chevrolet van, and a Mercedes G550. Under the plea agreement, the sisters are required to relinquish any claim to the vehicles immediately and repay, by time of sentencing, the fraud money they used to buy the real properties.
The investigation is being conducted by USDA-OIG and IRS with assistance from the United States Marshals Service and the United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorneys Cameron McCree, Bart Dickinson, and Amanda Fields.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Two "New Aryan Empire" Associates Sentenced to More than 28 Years in PrisonRead the Press Release
LITTLE ROCK—Two defendants were sentenced today for their involvement in activities carried out on behalf of a white supremacist gang. Carey Mooney, 46, of Dover, was sentenced to 223 months in federal prison for her role in kidnapping and assault with a dangerous weapon in aid of racketeering. Michael J. Roberts, 39, of Hattieville, was sentenced to 118 months imprisonment for his involvement in a methamphetamine conspiracy.
Mooney pleaded guilty in April 2021 to Kidnapping in Aid of Racketeering and Assault with a Dangerous Weapon in Aid of Racketeering. Roberts pleaded guilty in January 2020 to Conspiracy to Distribute and Possess with Intent to Distribute Methamphetamine. In addition to their terms of imprisonment, United States District Judge Brian S. Miller also sentenced Mooney to three years of supervised release and Roberts to five years of supervised release following their terms of imprisonment.
The investigation began in 2016, when local and federal agencies initiated a joint investigation to identify, infiltrate, and dismantle drug trafficking organizations in Russellville. Agents identified multiple individuals who were trafficking methamphetamine in the Pope County area. The investigation revealed that Mooney was an associate of the New Aryan Empire (NAE), a white supremacist organization that began as a prison gang and functioned as a drug trafficking organization.
In May 2017, Mooney and other NAE members and associates kidnapped one individual that they suspected of cooperating with law enforcement, which violated the rules of NAE. The victim was held against his/her will and subsequently beaten and stabbed in the leg with a knife by Mooney, and threatened with his/her life for violating NAE protocol.
Roberts, who was not involved in the kidnappings, distributed methamphetamine for NAE leadership. In November 2016, authorities intercepted a package Roberts sent to California containing over $40,000 in cash. Roberts sent another package in January 2017 that contained $24,000 in cash. The investigation revealed that Roberts received five-pound shipments of methamphetamine every week for three months and later increased to ten-pound shipments of methamphetamine every week for one month, and the cash was payment for some of those shipments. In total, Roberts facilitated the distribution of approximately 100 pounds of methamphetamine.
Mooney and Roberts were charged on September 3, 2019, in a federal indictment that charged more than 50 people from the Pope County area with violations of the Racketeer Influenced and Corrupt Organizations Act (RICO), Violent Crimes in Aid of Racketeering (VICAR), and numerous gun and drug violations. The case is named “To The Dirt,” a reference to the NAE slogan referring to the rule that members must remain in the NAE until they die. The charges allege acts involving attempted murder, kidnapping, maiming, and conspiracy to distribute methamphetamine. Of the 55 total defendants charged in “Operation ‘To The Dirt,’” 53 defendants have pleaded guilty, 1 defendant was found guilty at trial, and 27 of those defendants have already been sentenced to prison terms: Jared Dale, 84 months; Britanny Conner, 120 months; Keith Savage, 120 months; Joseph Pridmore, 150 months; Daniel Adame, 262 months; Justin Howell, 155 months; James George, 70 months; Amos Adame, 121 months; and Skippy Don Sanders, 262 months; Andrew Syverson 151 months; Amanda Rapp 262 months; Jayme Short 90 months; Cory S. Donnelly 188 months; Wesley Pierson 120 months; Ralph Ross 36 months; Jeffrey L. Knox 180 months; Robert Chandler 65 months; Timothy Ferguson 180 months; Paula S. Enos 180 months; Heath Kizer 96 months; Christopher S. Helms 102 months; David D. Singleton 131 months; Kathrine R. Ross 60 months BOP; Kevin M. Long 369 months; James Scott Oliver 327 months; and Wesley S. Gullett 420 months,. The remaining defendant, Troy L. Loadholt, remains a fugitive.
The investigation was conducted by ATF, DEA, the United States Postal Inspection Service, the Pope County Sheriff’s Office, Fifth Judicial Drug Task Force, and the Russellville Police Department, with assistance from the FBI.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Jury Finds Doctor Guilty in $10 Million TRICARE SchemeRead the Press Release
LITTLE ROCK—An Alexander doctor has been convicted for his involvement in a multi-million-dollar kickback conspiracy at the conclusion of a week-long trial. A federal jury found Joe David “Jay” May, 41, guilty on all 22 counts for which he was indicted.
The jury returned their verdict Thursday evening after deliberating for about three hours. United States District Judge Kristine Baker presided over the trial, and Judge Baker will sentence May at a later date.
“Dr. May used his signature as a rubber stamp to help his friends rake in millions of dollars in kickbacks from fraudulent prescriptions,” said Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas. “His crimes are a reprehensible abuse of his Hippocratic oath and his medical license. Our office and our federal law enforcement partners at the FBI and Department of Health and Human Services Office of Inspector General (HHS-OIG) are resolved to continue to bring to justice all other health care professionals who defraud our nation’s healthcare systems.”
A grand jury returned an indictment against May in January 2020. The indictment alleged that May signed off on illegitimate prescriptions for pain cream in order to trigger a payout from TRICARE, the nation’s insurance for veterans. A pharmacy promoter paid recruiters to find TRICARE beneficiaries, regardless of whether they needed the drugs, and then paid others to get medical professionals, including Jay May, to rubber stamp prescriptions for TRICARE beneficiaries.
TRICARE paid over $12 million for compounded drugs prescribed through this scheme. Evidence at trial indicated that May wrote 226 prescriptions over the course of ten months, for which TRICARE paid $4.63 million. All but one of those prescriptions were supplied by drug sales representatives, Glenn Hudson and Derek Clifton, both of whom have pleaded guilty in the scheme, and directed to prescribers, May and a nurse practitioner named Donna Crowder, who has also pleaded guilty. May accepted cash bribes totaling nearly $15,000 and signed off on the prescriptions without consulting patients and without determining whether or not the prescription was needed.
One recruiter hosted a meeting at Fisher Armory in North Little Rock. At that meeting, he signed people up for the drugs and offered to pay them $1,000. Thirteen of those patients were routed to Dr. May, who signed each prescription, and this group alone cost TRICARE $370,000. The conspirators learned that reimbursements from TRICARE might fall in May 2015, so April was the last opportunity to profit from the program. In the last ten days of April 2015, May signed 59 prescriptions, for which TRICARE paid $1.4M. During a single 9-week period at the height of the scheme, May deposited $9,925 cash; an FBI forensic accountant testified this was more cash than he deposited in 2014 and 2016 combined.
“TRICARE is dedicated to serving our veterans, military members, and their families,” said FBI Little Rock Special Agent in Charge James Dawson. “Dr. May displayed a lack of integrity by defrauding millions from our nation’s military insurer and lying to our Agents in an effort to conceal his crimes. The FBI is committed to working alongside our partners at the U.S. Attorney’s Office to protect our service members and their loved ones from corrupt medical professionals like Dr. May.”
“Dr. May engaged in a kickback scheme that undermined federal health care programs,” said Special Agent in Charge Miranda L. Bennett of the U.S. Department of Health and Human Services Office of Inspector General. “This verdict is a testament to strong law enforcement partnerships committed to holding physicians accountable for providing quality care to beneficiaries of these programs,” said HHS-OIG Special Agent in Charge Miranda Bennett.
The statutory penalties for May’s convictions are: wire fraud, mail fraud, and falsifying records, not more than 20 years imprisonment; violation of the anti-kickback statute, not more than 10 years imprisonment; and conspiracy and making false statements, not more than five years imprisonment. In addition to any sentence imposed, May will also serve an added four years for convictions on two counts of aggravated identity theft. All offenses of conviction include a potential penalty of not more than a $250,000 fine and not more than three years of supervised release.
The investigation was conducted by the FBI and HHS-OIG. The case was prosecuted by Assistant United States Attorneys Alexander Morgan and Stephanie Mazzanti.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Former Stone County Sheriff's Deputy Faces Fraud, Extortion, and Firearms ChargesRead the Press Release
LITTLE ROCK—A former Chief Deputy with the Stone County Sheriff’s Office appeared in federal court today for arraignment on charges of bank fraud, selling a stolen firearm, and extortion. Zachary Hunter Alexander, 36, of Fifty Six, Arkansas, was indicted by a federal grand jury on May 3 and made his initial appearance today before United States Magistrate Judge Edie R. Erwin.
The indictment alleges that Alexander solicited money in 2018 from the Stone County Sheriff’s Foundation to purchase AR-15 style firearms for the Sheriff’s Office. According to the indictment, the Foundation provided over $4,000, which Alexander deposited into his personal account. Allegedly, Alexander provided and signed an invoice listing six firearms and their serial numbers, which turned out to be fraudulent, and this invoice was used to authorize a $3,090 expenditure on the Sheriff’s Office credit card.
In addition to those firearms, the indictment claims Alexander sold a sniper rifle to another individual, which is the basis of the charge of selling a stolen firearm, as the firearm belonged to the Stone County Sheriff’s Office and was purchased with Foundation money. Alexander also faces five charges of extortion under color of official right, and the indictment alleges he misused his authority as Chief Deputy Sheriff to obtain money that he used for himself. The indictment alleges that Alexander made various deposits totaling more than $105,000.
If convicted, Alexander faces potential penalties for bank fraud of not more than 30 years imprisonment, a fine of not more than $1 million, and not more than five years of supervised release. Selling a stolen firearm carries a penalty of not more than ten years imprisonment, a fine of not more than $250,000, and not more than three years of supervised release. Extortion under color of official right is punishable by not more than 20 years imprisonment, a fine of not more than $250,000, and not more than three years of supervised release.
An indictment only contains allegations. A defendant is presumed innocent unless and until proven guilty.
# # #
This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Searcy Man Sentenced to 30 Years in Prison for Producing Child PornographyRead the Press Release
LITTLE ROCK—A Searcy man who sexually abused numerous young boys for years was sentenced yesterday afternoon for production of child pornography. United States District Court Judge Billy Roy Wilson sentenced John Ronald Ord, 51, to 30 years in federal prison. This 30-year sentence is the maximum allowed by law.
In 2019, Searcy Police Department began investigating Ord after a teenager reported he had been sexually abused by Ord for several years, beginning in 2012. Their investigation revealed that the defendant had been preying on teenage boys as far back as 1999 by exploiting their weaknesses, such as hunger, lack of a stable environment, or financial needs. Ord would then provide the boys with drugs and alcohol before sexually abusing them. At least 19 of Ord’s victims have been identified.
Law enforcement obtained a search warrant for Ord’s phone and saw a conversation on a dating app called Grindr. In the app, Ord had a conversation in December 2018 with a 14-year-old boy in which Ord asked the boy to send him a photograph of his penis. This conduct led to the production of child pornography charge in December 2019. Ord was detained at that time and pleaded guilty in December 2021.
Five of Ord’s victims were present at the sentencing hearing and testified about their abuse at the hands of Ord. In addition to the prison term, Ord was sentenced to a lifetime of supervised release following his imprisonment. The investigation was conducted by the Searcy Police Department, the FBI, and the United States Secret Service. The case was prosecuted by Assistant United States Attorneys Kristin Bryant and John Ray White.
# # #
This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Two Drug Dealers Sentenced to Life in Prison for Murder of Federal WitnessRead the Press Release
LITTLE ROCK—Two drug dealers will spend the remainder of their lives in prison after conspiring to cause witness tampering resulting in death. Samuel “Big Hit” Sherman, 38, of Batesville, and Donald Bill Smith, 38, of Malvern, were both sentenced today to life in federal prison. There is no parole in the federal system. United States Chief District Judge D. P. Marshall, Jr., imposed the sentences.
Smith and Sherman were indicted in September 2019 in connection with the death of Susan Cooper, who had bought methamphetamine from Sherman but had begun working as an informant for law enforcement. In May 2016, Sherman was arrested and charged with selling methamphetamine to Cooper. As his case progressed, Sherman was released and permitted to work as an informant himself.
Though Sherman was supposed to be working as an informant, he had not provided enough information to help his case, and in September 2016, Sherman learned he was facing a significant federal prison sentence. Evidence at trial showed that upon learning this, Sherman called Smith, who was a methamphetamine dealer in the Malvern area. Smith had sold drugs to Rachael Cooper, who was Susan Cooper’s sister-in-law (they were married to brothers).
Cellular tower data presented at trial showed that shortly thereafter, Smith drove from Malvern to Batesville, where Sherman lived, and stayed in Batesville for approximately 40 minutes before returning to Malvern. On the way back to Malvern, Smith called Rachael. Rachael had been communicating with Susan about making arrangements for Susan to trade some hydrocodone pills for methamphetamine. Susan did not know the trade was with Smith.
That night, Rachael picked Susan up and drove her to meet Smith for the drug exchange. Rachael testified at trial that as they waited, she heard a gunshot followed by Susan crying out “I’m shot—get me out of here!” Rachael jumped in the driver’s seat and saw Smith shoot Susan several more times. Smith pulled Susan from the truck as Rachael sped away.
For a year and a half, Susan Cooper’s body had not been found. In July 2018, Smith was charged in state court with the murder, and after his arrest, a witness came forward to disclose Smith had demanded he help bury the body. This witness took federal agents to the location of Cooper’s body.
In September 2021, a jury trial resulted in both Smith and Sherman being convicted of conspiracy to cause witness tampering resulting in death. Smith was also convicted of witness tampering resulting in death, conspiracy to possess with intent to distribute and to distribute methamphetamine, and aiding and abetting the use of a firearm during and in relation to a drug trafficking crime. Smith, in addition to his life sentence, was ordered to serve a 50 year consecutive sentence.
The case was investigated by the FBI, the Drug Enforcement Agency, and the Hot Springs County Sheriff’s Office. The case was prosecuted by Assistant United States Attorneys Anne Gardner and Bart Dickinson.
# # #
This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Former DEA Supervisory Agent Sentenced to 135 Months in Prison for Accepting Bribes from Drug KingpinRead the Press Release
LITTLE ROCK—A former Drug Enforcement Administration (DEA) agent was sentenced today for accepting bribes from a drug trafficker. Nathan Koen, 45, now of Auburn, Illinois, was sentenced to 135 months in federal prison by United States District Judge Brian S. Miller.
Koen was charged by a federal grand jury in November 2019 with one count of conspiracy to possess with intent to distribute and to distribute heroin, cocaine, and methamphetamine, and one count of bribery of a public official. In August 2021, he pleaded guilty to bribery in exchange for dismissal of the drug-related charge.
During the sentencing hearing, which took place over two days and concluded today, Judge Miller found that Koen accepted bribes from a known, large-scale drug trafficker for the purpose of helping facilitate a drug conspiracy, and that the conspiracy involved at least 15 to 45 kilograms of methamphetamine. The drug trafficker testified during the hearing and explained that he believed Koen provided was providing sensitive, law-enforcement information, which helped the trafficker avoid detection by law enforcement and run his drug organization. The drug trafficker, who is in federal custody, stated that his organization was responsible for distributing kilogram quantities of methamphetamine cocaine, heroin, fentanyl, and marijuana.
“This defendant’s actions are a disgrace to the thousands of dedicated law enforcement officers who work with integrity every day to protect and serve our communities,” stated United States Attorney Jonathan D. Ross. “His greed and deception have no place in law enforcement, and we are pleased to see this case come to its rightful conclusion.”
In 2018, the FBI began investigating Koen, who had been working for DEA since 2002 and had transferred in 2016 to work as a Group Supervisor in the Little Rock DEA office from Jacksonville, Florida. FBI agents interviewed the drug trafficker who told law enforcement he had paid Koen cash for information and protection related to his drug-trafficking activities.
The drug trafficker told FBI agents he had been in custody on federal drug charges in 2013-2014 when another inmate told him he should contact Koen and offer to work as an informant, which he did. After his case was resolved, the informant resumed distributing large amounts of heroin, methamphetamine, marijuana, and cocaine in Florida, California, Arkansas, and elsewhere, while making payments to Koen for protection. The informant paid approximately $31,500 to Koen before he began cooperating with the FBI.
The informant began working with FBI, and he agreed to set up a controlled delivery of a bribe payment to Koen. Koen and the informant agreed to meet in Las Vegas on December 3, 2018. FBI agents equipped the informant with $9,000 cash and multiple audio recording devices. Koen and the informant met on the sidewalk across from the Bellagio hotel and walked together to the Paris Las Vegas hotel, where they went inside a bathroom away from casino cameras. Once inside, the informant placed the cash in Koen’s backpack, and they left the hotel, each going in different directions.
Recordings of the encounter revealed that Koen asked the informant, “Did you make this worth it?” The informant responded, “Come on, man, you know I always make it worth it for you.” Koen responded, “I know.” Koen also advised the informant that he should get rid of all his phones and change his address because he expected a search warrant to be executed at his home soon. Koen was arrested when he returned to Arkansas later that day, and he admitted to accepting bribes from the informant.
“By protecting a drug trafficking organization and accepting bribes from a drug kingpin, former Group Supervisor Nathan Koen deceived and betrayed his brothers and sisters in the DEA,” FBI Little Rock Special Agent in Charge James A. Dawson said. “His disgraceful and corrupt conduct only strengthens our resolve to continue attacking corruption at all levels. We’re grateful for the strong, ongoing partnerships we share with both the Drug Enforcement Administration and U.S. Attorney's Office.”
“Today’s sentencing reflects DEA’s commitment to hold accountable any DEA employee who abuses the trust of the American people by violating their oath as a federal law enforcement officer,” said DEA Administrator Anne Milgram. “Nathan Koen put himself ahead of the principles he swore to protect. I commend our federal law enforcement partners who investigated this case and the U.S. Attorneys who prosecuted it.”
“Koen turned his back on his duty to protect the public. As a DEA Agent, Koen was tasked with investigating drug traffickers. Instead, he accepted a cash bribe and provided a known drug trafficker with sensitive law enforcement information. The Department of Justice Office of the Inspector General will continue to investigate those who engage in this kind of conduct,” said Cloey C. Pierce, Special Agent in Charge of the Department of Justice Office of the Inspector General Dallas Field Office.
In addition to the term of imprisonment, Judge Miller also sentenced Koen to two years of supervised release following his term of imprisonment. The investigation was conducted by the FBI, and the case was prosecuted by Assistant United States Attorneys Benecia Moore and Chris Givens.
# # #
This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Two Drug Conspiracies Land Little Rock Man in Federal Prison for 18 YearsRead the Press Release
LITTLE ROCK—A Little Rock man’s involvement in two separate drug conspiracies will end with him spending 18 years in federal prison. Desmond Kelley, aka “Trell,” 28, was sentenced yesterday to 151 months in prison for his role in a conspiracy to distribute fentanyl, with that sentence to run consecutive to a 65-month sentence he recently received for being involved in a heroin distribution conspiracy. United States District Judge Brian S. Miller handed down the sentence.
In May 2017, Kelley was named in a 33-defendant indictment that charged him with conspiracy to distribute heroin, distribution of heroin, and use of a telephone to facilitate a drug trafficking crime. In that case, Kelley worked with Aaron “Black” Clark to distribute heroin in Little Rock. In 2016 and 2017, Clark supplied Kelley with multiple ounces of heroin at a time, which Kelley then resold.
The FBI arrested Kelley in that case on May 31, 2017, and Kelley was released on pretrial bond on January 30, 2018. At that point, the Drug Enforcement Administration (DEA) developed evidence that Kelley immediately went back to selling drugs, including both heroin and fentanyl, to a new group of people. This time, Kelley was at the top of the 17-defendant conspiracy and supplied significant amounts of fentanyl to multiple people who were also indicted.
Kelley was then indicted for the second time and arrested by the DEA on October 15, 2019, and this time charged with conspiracy to distribute fentanyl. The next day, Kelley pleaded guilty conspiracy to distribute between 400-700 grams of heroin in the 2017 case. Kelley received a 65-month sentence from United States District Judge James M. Moody, Jr., on October 13, 2020. On February 1, 2021, Kelley pleaded guilty to conspiracy to distribute between 1.2 and 4 kilograms of fentanyl in the 2019 case.
In addition to the prison sentence, which totals 216 months combined, Judge Miller sentenced Kelley to five years of supervised release. There is no parole in the federal prison system.
The 2017 case was investigated by the FBI’s Met Rock Task Force, in coordination with the LRPD and NLRPD, and prosecuted by Assistant United States Attorney Benecia Moore. The 2019 case was investigated by the DEA, in coordination with the LRPD and NLRPD, and prosecuted by Assistant United States Attorney Chris Givens.
# # #
This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Ringleader of $10 Million TRICARE Scheme SentencedRead the Press Release
LITTLE ROCK—The organizer of a multi-million-dollar kickback conspiracy was sentenced today. Brad Duke, 47, of Little Rock was sentenced to 36 months’ imprisonment and ordered to forfeit $1,055,855.86 by United States District Judge Brian S. Miller.
Duke promoted prescription pain creams, scar creams, and supplements for a Mississippi-based compounding pharmacy, earning a share of whatever the pharmacy was paid for prescriptions issued by Duke’s affiliated doctors. After learning TRICARE, the national military’s health insurer, paid tens of thousands of dollars per month per patient for the compounded drugs he was promoting, Duke began to offer and pay kickbacks to generate prescriptions for those with TRICARE insurance.
Duke paid kickbacks to recruiters, including Michael “Chance” Beeman (52, of Maumelle), Michael Sean Brady (53, of Little Rock), Jason Greene (35, of Nashville, Tenn.), Brian Means (47, of Fort Smith), and Jennifer Sorenson (44, of McKinney, Tex.), to find TRICARE beneficiaries around the country willing to receive the drugs. Duke explained a doctor would sign off on the necessary prescriptions without ever consulting the patients. All Duke needed was TRICARE beneficiary insurance information sufficient to fill out prescription forms.
Upon receipt of beneficiary information from his recruiters, Duke routed prescriptions in the names of the TRICARE beneficiaries to local medical assistant Charlotte Leija (41, of Conway), to whom Duke paid kickbacks, usually $1,000 per prescription, to file the prescriptions under the name of the doctor for whom she worked.
Within a year, Duke’s scheme generated over $10 million in compound drug prescriptions for over 100 TRICARE beneficiaries hailing from as far west as Chula Vista, Calif., to as far east as Foxborough, Mass. No one ever consulted a prescriber. Duke paid his recruiters more than $2 million to supply the beneficiaries and over $250,000 to Leija to issue the prescriptions.
Judge Miller previously sentenced co-conspirators Brady, Beeman, Green, Means, Sorenson, and Leija to prison terms ranging from 8 months to 28 months and ordered them to forfeit illicit proceeds ranging from $198,799.00 to $598,435.99. As of today’s sentencing hearing, the U.S. Marshals had already seized $1,055,855.86 from Duke.
The investigation was conducted by the FBI and the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG), and the case was prosecuted by Assistant United States Attorney Alexander D. Morgan.
# # #
This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Arkansas Prisoner Guilty of Threatening Federal Judges, ProsecutorRead the Press Release
LITTLE ROCK, Arkansas – An Arkansas inmate has pleaded guilty to federal violations, announced Eastern District of Texas U.S. Attorney Brit Featherston today.
Jeffrey Scott Williams pleaded guilty to mailing threatening communications today before U.S. District Judge Kristine G. Baker.
According to information presented in court, in June 2017, Williams was convicted of mailing threatening communications and was sentenced to 10 years in prison based on a letter he wrote in which he threatened to kill a United States judge. After that conviction, in March 2018, Williams mailed a letter to the federal courthouse in Memphis, Tennessee, in which he threatened to kill a United States judge. Then in May 2018, February 2019, and March 2020, Williams mailed letters to the federal courthouse in Little Rock in which he threatened two United States judges and an Assistant U.S. Attorney.
Williams was indicted by a federal grand jury on June 4, 2020. He faces up to 10 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by the U.S. Postal Inspection Service and prosecuted by Eastern District of Texas Assistant U.S. Attorney Jonathan R. Hornok.
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Two Fugitives Arrested in Methamphetamine ConspiracyRead the Press Release
LITTLE ROCK— Two Little Rock men were arrested Wednesday on federal drug conspiracy charges. Richard Smith, 48, and Enrique Salazar-Pacheco, 22, were charged by a grand jury in an indictment handed down on December 8, 2021.
In November 2021, two federal officers were conducting surveillance as part of an ongoing investigation into a methamphetamine trafficking organization that involved Smith and Salazar-Pacheco. As the agents were attempting to leave the rural area, a male later identified as Jackie Davidson, 50, of Woodson, exited the wood line and fired multiple shots at the law enforcement officers, striking their vehicle several times.
Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas, announced the indictment, which charges Smith, Salazar-Pacheco, and three others with various methamphetamine and firearms charges. Smith, Salazar-Pacheco, and Abelardo Gonzalez, 46, of Woodson, are charged with conspiracy to distribute 500 grams or more of a methamphetamine mixture. Smith and Salazar-Pacheco are also individually charged with possession with intent to distribute methamphetamine, and Gonzalez is charged with being an unlawful user of a controlled substance in possession of a firearm. Salazar-Pacheco is also charged with possessing a firearm in furtherance of a drug trafficking crime.
Davidson is charged with using a firearm to assault two federal agents; one Task Force Officer from the Drug Enforcement Administration (DEA) and one Special Agent from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Davidson is also charged with using a firearm during a crime of violence as well as attempted murder of federal officers. Jose Alonso Mena Moreno, 43, of Woodson, is charged with being a felon in possession of a firearm as well as being illegally present in the United States.
“During this investigation, arrests were made at the local level, but we and our federal partners did not stop there,” said Searcy Police Chief Steve Hernandez. “Criminals do not follow city limit boundaries, so we identified the source of these narcotics in Southwest Little Rock, where those who were supplying narcotics to citizens of Searcy were taken off the streets.”
“These arrests show the level of our officers’ commitment to continually work to bring justice to those folks that would do harm in our communities,” said White County Sheriff Phillip Miller. “I am grateful for their service.”
This investigation is part of Operation Central Sweep. Since July 2020, members of DEA, ATF, and Central Arkansas Drug Task Force, Searcy Police Department and White County Sheriff’s Office have seized a total of 308.04 pounds of methamphetamine including 5.7 pounds fentanyl, 2 1/2 pounds of cocaine, 24,000 counterfeit Oxycodone pills (Blue M-30s laced with fentanyl) and 84 firearms. Little Rock Police Department has assisted in numerous arrests. Additionally, a total of 66 state and federal arrests have been made, including arrests of Gangster Disciples and members of the CJNG Cartel.
An indictment only contains allegations. A defendant is presumed innocent unless and until proven guilty.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Beebe Man Sentenced to Two and a Half Years in Prison for Defrauding Social Security AdministrationRead the Press Release
LITTLE ROCK—A Beebe man was sentenced for collecting more than $20,000 in Social Security Disability payments when he was not actually disabled. Ryan Kinsey, 35, was sentenced to 30 months in federal prison yesterday by United States District Judge Lee P. Rudofsky. A federal jury convicted Kinsey of Social Security fraud and making materially false statements following trial in July 2021.
In 2013, Kinsey began receiving Social Security benefits because he claimed to be disabled. He cited bipolar disorder, heart issues, post-traumatic stress disorder, and knee issues as the reasons for his disability. However, following trial, a jury found that while collecting these disability payments, Kinsey was also working full time by operating his family farm operation after his father passed away in 2017. His work on the farm involved buying horses at auction, caring for and selling the horses, farm maintenance, and marketing the business. At trial, the United States called numerous witnesses who all testified that during the time periods alleged they had either bought horses or hay from Kinsey or had Kinsey transport livestock. In the 15 months prior to indictment, Kinsey received more than $100,000 in payments for his ranching activities. During that same time period, he fraudulently received more than $20,000 from SSA.
Social Security determined that Kinsey was initially entitled to disability payments but should have stopped receiving them in 2017 when he began working. From that time until his payments were terminated in 2019, Kinsey received a total of $20,530 in Social Security payments, which Judge Rudofsky ordered him to pay in restitution. Kinsey was also sentenced to three years of supervised release following his term of imprisonment.
The case was investigated by the Social Security Administration – Office of the Inspector General Cooperative Disability Investigations Unit. Assistant United States Attorney Bart Dickinson prosecuted the case for the United States.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Florida Man Sentenced for Misleading Federal AgentsRead the Press Release
LITTLE ROCK—A Florida man was sentenced today for lying to federal agents. Steve Hill, 57, was sentenced to 18 months in prison and ordered to forfeit $345,727.15 by United States District Judge Brian S. Miller.
Formerly of the Memphis area, Hill spent nearly a quarter century working in the medical sales industry for various Fortune 500 companies, during which time he received standard compliance training on the Anti-Kickback Statute. In 2014, then working under Brad Duke of Little Rock, Hill began to promote expensive compounded prescription drugs covered by TRICARE. Hill operated on a commission basis, earning a fixed percentage of whatever TRICARE paid for the drugs.
To generate sales, Hill encouraged a Memphis area doctor to prescribe the expensive compounded drugs by agreeing to share his commission on the doctor’s prescriptions through payments to the doctor’s spouse. Most of Hill’s payments would eventually be routed to a Tennessee shell corporation formed under the spouse’s name. Within a year, Hill’s arrangement succeeded in generating over $1 million in TRICARE compounded prescription drug claims, earning Hill $345,727.15.
Federal agents investigating the case discovered the connection between Hill, the shell corporation, the spouse, and the doctor. In August 2017, federal agents visited Hill’s Memphis area home to discuss his promotion of compounded prescription drugs. When asked about his financial dealings with the spouse, Hill denied paying the spouse anything in relation to the doctor’s prescriptions.
The investigation was conducted by the FBI and the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG), and the case was prosecuted by Assistant United States Attorney Alexander D. Morgan.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Oklahoma Man Sentenced to 12 Years in PrisonRead the Press Release
LITTLE ROCK—An Oklahoma man has been sentenced to 12 years in prison for his role in a conspiracy that resulted in the trafficking of firearms to Mexican cartels. Andrew Scott, Pierson, 46, of Jay, Oklahoma, was sentenced this afternoon by United States District Judge Brian S. Miller.
In May 2017, an Arkansas resident received a shipment of firearm components that had been sent to him for cerakoting, a process in which a polymer-ceramic coating is added to a firearm or its parts to improve durability. The parts appeared to be 80% Colt lower receivers, and this individual recognized these firearm parts as counterfeit. He contacted law enforcement. The counterfeit receivers were traced to an organization in Laredo, Texas, which was transporting firearm parts to Pierson in Nuevo Laredo, Mexico. Pierson assembled the parts into functioning weapons for the Cartel Del Noreste (CDN) and Cartel Jalisco Nueva Generacion (CJNG).
Pierson was arrested at the southern United States border on December 10, 2018. Pierson admitted to ordering and receiving firearm parts from the United States and manufacturing automatic weapons in Mexico for the CDN and CJNG cartels. Law enforcement later confirmed cartel firearm availability was impaired following Pierson’s arrest.
On September 3, 2019, a federal grand jury indicted Pierson and seven others for their involvement conspiracies to traffic in counterfeit goods and to violate the Arms Export Control Act. Five codefendants have previously pleaded guilty, and one co-defendant remains a fugitive. In November 2021, Pierson pleaded guilty to Count 2 of the Fourth Superseding Indictment, conspiracy to violate the Arms Export Control Act.
“Mr. Pierson’s participation in the exportation and manufacturing of illegal firearms to Mexican cartels is an inexcusable contribution to the violence carried out by these groups,” said United States Attorney Jonathan D. Ross. “We are committed to prosecuting any case that will help prevent violent criminal organizations from obtaining firearms.”
“Our Special Agents worked diligently on this investigation to intercept illegal weapon components being trafficked to criminal organizations in Mexico,” said Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Kurt Thielhorn. “Our goal is to disrupt and dismantle the illegal activity and this sentencing sends a message to those who seek to aid violent criminals that it will not be tolerated. ATF works aggressively to identify and investigate individuals who arm the ruthless organizations that are responsible for a majority of the extreme violence in Mexico.”
“The U.S. Postal Inspection Service values our law enforcement partners and the U.S. Attorney’s Office in the Eastern District of Arkansas who helped bring this investigation to a successful conclusion,” said Thomas Noyes, Inspector in Charge of the Fort Worth Division. “Illegal shipments of weapons threaten the safety of all our communities. These crimes are a priority for Postal Inspectors and demonstrate the importance of our mission that includes the safeguarding of the Postal Service, its customers, and preventing the illegal use of the U.S. Mail.”
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Essential support and coordination for Operation Thor’s Hammer was supplied by Special Operations Division (SOD) personnel, including assigned agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Drug Enforcement Administration, and attorneys from the Narcotic and Dangerous Drug Section and Money Laundering and Asset Recovery Section. The United States Postal Inspection Service and the Pine Bluff Police Department were also instrumental in the investigation, with assistance from Homeland Security Investigations and the FBI. The case was prosecuted by Assistant United States Attorney Anne Gardner.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Jury Convicts Monticello Man of Selling Methamphetamine Multiple TimesRead the Press Release
LITTLE ROCK—A Monticello man has been convicted of selling methamphetamine three different times in 2018 following a two-day trial that featured videos of all three sales. A federal jury convicted Ramien “Rambo” Collins, 40, on all three counts for which he was indicted.
The jury returned their verdict Wednesday morning after deliberating for approximately 30 minutes. United States District Judge James M. Moody, Jr., presided over the trial, and Judge Moody will sentence Collins at a later date. Collins, based on his charges, criminal history, and the jury’s verdict, faces a statutory minimum sentence of 10 years to life imprisonment, and an anticipated recommended sentencing range of 360 months to life in federal prison.
A grand jury indicted Collins on September 5, 2019, on three counts of distribution of more than 50 grams of actual methamphetamine for transactions that occurred in September and November 2018. Testimony during the trial established that in 2018 the FBI developed a confidential informant who was being supplied with multiple pounds of cocaine and methamphetamine by Collins. The informant then made three purchases directly from Collins three different times—one-quarter pound of methamphetamine on September 12 and September 26, and three ounces of methamphetamine on November 7.
At trial the jury heard evidence that Collins had previously been convicted of a federal drug trafficking crime and was on federal supervised release when he was selling methamphetamine in 2018.
All of Collins’s offenses of conviction, in addition to the imprisonment ranges, include a potential penalty of not more than a $10,000,000 fine and not less than five years of supervised release.
The investigation into Collins was part of the larger “Quack Attack” operation that resulted in the arrests of 15 defendants. During the course of Operation Quack Attack, investigators conducted 58 controlled purchases of drugs and executed two search warrants. Authorities seized more than 2.5 kilograms of methamphetamine, 229 grams of cocaine, 200 grams of crack cocaine, 128 grams of marijuana, and 6 firearms, as well as almost $17,000 in cash.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The investigation into Collins was conducted by the FBI, the 13th Judicial Drug Task Force, and the Arkansas State Police, and the case was prosecuted by Assistant United States Attorneys Julie Peters and Chris Givens.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Missouri Health Care Charity Pays over $8 Million to Resolve Federal Embezzlement, Bribery InvestigationRead the Press Release
Preferred Family Healthcare, a Springfield, Missouri-based non-profit, will pay more than $8 million in forfeiture and restitution to the federal government and the state of Arkansas under the terms of a non-prosecution agreement announced yesterday, which acknowledges the criminal conduct of its former officers and employees.
“Preferred Family Healthcare must relinquish the illegal profits it garnered from a wide-ranging fraud and bribery scheme,” said U.S. Attorney Teresa Moore for the Eastern District of Missouri. “Several former officers and employees are being prosecuted in separate criminal cases for their individual criminal conduct. This non-prosecution agreement holds the charity itself responsible for their actions as agents of the charity. Public tax dollars were stolen and misused in the course of this public corruption scheme, and through this agreement and these separate prosecutions, those dollars are being restored to the public coffers.”
“Employees of Preferred Family Healthcare used charitable organizations to illegally line their own pockets through fraud and bribery,” said Special Agent in Charge Tyler Hatcher of IRS-Criminal Investigation (IRS-CI). “IRS-Criminal Investigation and our law enforcement partners will continue to work diligently to uncover large frauds designed to divert funds that were meant to help those in need of medical services. Preferred Family Healthcare has acknowledged that its former employees engaged in criminal activity, and they are taking steps to make amends by forfeiting a sum of money to the federal government and paying restitution to the state of Arkansas.”
“The public should not suffer or be responsible for individuals who abuse their leadership positions out of greed for personal financial gain,” said Special Agent in Charge Charles Dayoub of the FBI’s Kansas City Field Office. “It is never acceptable to embezzle and misappropriate funds, especially those that directly impact our health care system. As today’s announcement underscores, although the individuals directly involved are no longer with Preferred Family Healthcare, this organization is accepting responsibility for its employees’ actions.”
“The misuse and misappropriation of millions of federally sourced funds, designated for employment training and behavioral healthcare services to the public, by former executives of Preferred Family Healthcare (PFH) is a gross abuse of the positions of trust they once held within the organization,” said Special Agent-in-Charge Steven Grell of the U.S. Department of Labor, Office of Inspector General. “These former executives failed the public and did a disservice to PFH employees by prioritizing their own personal benefit and financial gain over the public they served. Today’s agreement demonstrates PFH’s willingness to take corrective actions regarding the criminal actions of former executives of the organization.”
Preferred Family Healthcare provides services to individuals in Missouri, Arkansas, Kansas, Oklahoma, and Illinois, including mental and behavioral health treatment and counseling, substance abuse treatment and counseling, employment assistance, aid to individuals with developmental disabilities, and medical services. Most of the charity’s funding comes from federally appropriated funds – the largest portion being Medicaid reimbursement.
As a condition of this non-prosecution agreement, representatives of Preferred Family Healthcare admitted that former officers and employees of the charity engaged in a conspiracy to, amongst other criminal activity, embezzle funds from the charity and to bribe several elected state officials in the Arkansas House of Representatives and the Arkansas Senate. As a direct result of these actions, Preferred Family Healthcare realized a financial benefit. Although Preferred Family Healthcare’s board of directors through lack of proper oversight, allowed its officers and employees to violate federal law.
Under the terms of the non-prosecution agreement, Preferred Family Healthcare will forfeit more than $6.9 million to the federal government and pay more than $1.1 million in restitution to the state of Arkansas related to the misuse of funds from the state’s general improvement fund.
Several former executives from the charity, former members of the Arkansas state legislature, and others have pleaded guilty in federal court as part of the multi-jurisdiction, federal investigation, including the following:
- Former Chief Executive Officer, Marilyn Luann Nolan of Springfield, Missouri, pleaded guilty in November 2018 to her role in a conspiracy to embezzle and misapply the funds of a charitable organization that received federal funds. A sentencing hearing has not been scheduled.
- Former Director of Operations and Executive Vice President Robin Raveendran, of Little Rock, Arkansas, pleaded guilty in June 2019 to conspiracy to commit bribery concerning programs receiving federal funds. A sentencing hearing has not been scheduled.
- Former executive and head of clinical operations Keith Fraser Noble, of Rogersville, Missouri, pleaded guilty in September 2019 to concealment of a known felony. A sentencing hearing has not been scheduled.
- Former employee and head of operations and lobbying in Arkansas, Milton Russell Cranford, aka Rusty, of Rogers, Arkansas, was sentenced to seven years in federal prison without parole after pleading guilty to one count of federal program bribery.
- Political Consultant Donald Andrew Jones, aka D.A. Jones, of Willingboro, New Jersey, pleaded guilty in December 2017 to his role in a conspiracy from April 2011 to January 2017 to steal from an organization that receives federal funds.
- Former Arkansas State Senator Jeremy Hutchinson, of Little Rock, Arkansas, pleaded guilty in June 2019 to conspiracy to commit federal program bribery. A sentencing hearing has not been scheduled.
- Former Arkansas State Representative Eddie Wayne Cooper, of Melbourne, Arkansas, pleaded guilty in February 2018 to conspiracy to embezzle more than $4 million from Preferred Family Healthcare. A sentencing hearing has not been scheduled.
- Former Arkansas State Senator and State Representative Henry (Hank) Wilkins IV pleaded guilty to conspiracy to commit federal program bribery and devising a scheme and artifice to defraud and deprive the citizens of the State of Arkansas of their right to honest services. A sentencing hearing has not been scheduled.
As part of the federal investigation, the former chief operating officer and chief financial officer of the charity were indicted by a federal grand jury on March 29, 2019. They pleaded not guilty, and are awaiting trial, which is scheduled to begin on Oct. 3.
The separate criminal cases are being prosecuted by Senior Litigation Counsel Marco A. Palmieri and Trial Attorney Jacob Steiner of the Criminal Division’s Public Integrity Section, Supervisory Assistant U.S. Attorney Randall Eggert and Assistant U.S. Attorney Shannon T. Kempf of the Western District of Missouri, Assistant U.S. Attorney Steven M. Mohlhenrich of the Western District of Arkansas, and Special Assistant U.S. Attorney Stephanie Mazzanti of the Eastern District of Arkansas.
IRS-Criminal Investigation, FBI, and the Offices of the Inspectors General from the Departments of Justice, Labor, and the Federal Deposit Insurance Corporation (FDIC) investigated the cases.
This is a combined investigation with the Criminal Division’s Public Integrity Section, the Western District of Missouri, the Western District of Arkansas, and the Eastern District of Arkansas.
Ten Indicted in $2.7M Little Rock Fraud RingRead the Press Release
LITTLE ROCK—Ten defendants have been indicted for their roles in a bank fraud conspiracy that involved theft of pandemic unemployment funds. Khi Simms, 27, of Alexander, Arkansas, was ordered to remain in federal custody late yesterday afternoon after a detention hearing held before United States Magistrate Judge J. Thomas Ray.
Three other defendants, Brelyn London, 27; Karl Harris, 26; and Deuntae Diggs, 26; all of Little Rock, are also in custody awaiting trial. The remaining six defendants, Madison Clark, 24, of Alexander; Keshoun Coleman, 23; Derrick Harris, 19; Terence Holman, 27; Brandon Shavers, 29; and Quentin Watson, 27; all of Little Rock, have been released on bond to await trial, which is scheduled for April 18, 2022.
The indictment alleges that the defendants used unemployment debit cards, which were designed to distribute pandemic unemployment assistance made available by the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act), to withdraw funds to which they were not entitled. According to the indictment, Madison Clark worked as a contract employee with a bank who had a role in distributing these unemployment debit cards for the state of California’s Employment Development Department.
The indictment alleges that Clark used her access to issue debit cards, remove fraud blocks, and add credits to unemployment debit card accounts, resulting in approximately $2.7M in losses as calculated to this point in the investigation. Clark and Simms, and others Simms recruited, then used fraudulent debit cards to withdraw the funds Clark made available.
All ten defendants are charged with conspiracy to commit bank fraud, which carries a maximum penalty of 30 years imprisonment, a fine of up to $1M, and not more than five years of supervised release. All ten defendants are also charged with wire fraud, which carries a maximum penalty of 20 years imprisonment, a fine of up to $250,000, and not more than five years of supervised release. The case is being investigated by the FBI and prosecuted by Assistant United States Attorney Allison W. Bragg.
An indictment contains only allegations. Defendants are presumed innocent unless and until they are proven guilty.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Jury Finds Little Rock Man Guilty of Sex Trafficking; Distribution and Production of Child PornographyRead the Press Release
LITTLE ROCK—A Little Rock man has been convicted of four sex offenses at the conclusion of a three-day trial. A federal jury found KeShawn Boykins, 27, guilty on all four counts for which he was indicted: two counts of sex trafficking, distribution of child pornography, and production of child pornography.
The jury returned their verdict this afternoon after deliberating for just under three hours. United States District Judge James M. Moody, Jr., presided over the trial, and Judge Moody will sentence Boykins at a later date.
“This defendant physically abused his victims in order to maintain control over them and profit from the sexual acts he forced them to perform,” said Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas. “Today’s verdict sends a clear message to those who engage in these violent acts: you will be caught, and you will be prosecuted to the fullest extent available to us under federal law.”
Testimony during the trial established that in October 2018, a 19-year-old female identified as H.E. notified employees at Walmart in Maumelle, Arkansas, that she needed to escape from the man she was with. The employees contacted police, and H.E. told law enforcement she had met Boykins five days earlier and exchanged numbers. H.E. had been kicked out of her parents’ home, and Boykins offered for her to live with him, which she agreed to do.
When H.E. arrived at Boykins’ apartment, she learned he was living with a 17-year-old female, identified as T.M., an adult woman, and others. The defendant made a profile for H.E. on an online dating website. Two days after moving in, the defendant told H.E. she had two “dinners” to attend. T.M. had already told H.E. that these dates meant H.E. would be expected to have sex for money. H.E. testified at trial that when she told Boykins she did not want to go, he threw her on the floor, choked her, and continued to physically abuse her. H.E. escaped during a trip to Walmart the following day.
T.M. testified at trial that the defendant used an online dating website to arrange dates for her, and that if she came back with less money than Boykins expected, he would hit her. He never allowed her to keep any of the money and, due to her repeated attempts to leave, he routinely physically abused her.
Evidence at trial indicated that Boykins’ phone contained multiple messages in which he arranged dates for both T.M. and H.E. He sent sexually explicit photos of both T.M. and H.E. while attempting to set up dates. The photos of T.M., taken when she was a minor, led to Boykins’ conviction on the child pornography charges.
“Mr. Boykins produced child sexual abuse material and lured a vulnerable minor into the reprehensible world of sex trafficking,” said FBI Little Rock Special Agent in Charge James A. Dawson. “His abominable actions highlight the pervasive threat Arkansas children and families face on a daily basis. FBI Little Rock will continue to work with our local police partners and federal prosecutors to protect our communities from vile child predators.”
The statutory penalty for sex trafficking ranges from not less than 15 years imprisonment up to life imprisonment. The statutory penalty for distribution of child pornography is not less than five years and not more than 20 years imprisonment. The statutory penalty for production of child pornography is not less than 15 years imprisonment and not more than 30 years imprisonment. All offenses of conviction include a potential penalty of not more than a $250,000 fine and not less than five years of supervised release.
The investigation was conducted by the FBI, and the case was prosecuted by Assistant United States Attorneys Kristin Bryant and Benecia Moore.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Justice Department Honors Fifth Annual Attorney General’s Award for Distinguished Service in Community PolicingRead the Press Release
LITTLE ROCK—The Justice Department today announced the recipients of the Fifth Annual Attorney General’s Award for Distinguished Service in Community Policing. This year’s awards recognize the exceptional work of 18 law enforcement officers and deputies from 12 jurisdictions across the country.
Attorney General Garland announced the award recipients in Atlanta, Georgia. Later, he attended a ceremony for three award recipients from the DeKalb County Police Department.
“The work of law enforcement has always been difficult—but perhaps no more so than in the recent past, as officers have faced a host of significant challenges. The officers and deputies receiving this year’s awards demonstrate how so many go above and beyond, even in the midst of trying circumstances,” he said. “Every day, thousands of people who work in law enforcement forge and maintain strong community ties that are essential for ensuring public safety. The recipients of this award represent quintessential examples of such critical efforts. It is an honor to recognize them.”
“This is a monumental moment for Officer Cody Hubbard and the Pottsville Police Department” stated United States Attorney Jonathan D. Ross. “Officer Hubbard is among the few officers to be recognized for this distinguished award and we are so proud of him. As a recent graduate from the law enforcement training academy, Officer Hubbard aptly applied his training and was able to save a baby who was in cardiac arrest. Thank you, Officer Hubbard, for your quick actions and answering the call to serve and protect.”
The Attorney General’s Award recognizes individual state, local, Tribal, and territorial police officers, deputies, and troopers for exceptional efforts in community policing. The awarded officers and deputies have demonstrated active engagement with the community in one of three areas: innovations in community policing, criminal investigations, or field operations. This year, the Department received 185 nominations from 145 agencies, recognizing a total of 347 individual officers, deputies, and troopers. There were 39 states represented in the nomination pool, covering state, local, campus, sheriff, and other agency types.
The work being honored this year reflects numerous examples of law enforcement officers working closely with the community to build trust, solve problems, reduce crime, and improve public safety.
The Department of Justice works closely with national law enforcement stakeholder groups during the award review period, taking advantage of their expertise and experience to determine the recipients in a competitive nomination process. The Department also works closely with its components, utilizing the breadth of knowledge within the Department to ensure a successful program that honors the exceptional service of our nation’s law enforcement officers and deputies.
Complete information on the Fifth Annual Attorney General’s Award for Distinguished Service in Community Policing can be found at https://www.justice.gov/ag/policing-award.
Attorney General Awards for Distinguished Service in Community Policing 2021
INNOVATIONS IN COMMUNITY POLICING
Officer Cody Hubbard, Pottsville (AR) Police Department
In May 2021, Officer Cody Hubbard responded to a call of a cardiac arrest of a three-week-old child who was not breathing. Immediately upon his arrival, Hubbard began life-saving efforts and started the Heimlich maneuver for infants. The baby soon began to cry and breathe on his own. The Pope County emergency medical services team then arrived and took over the scene. Hubbard was awarded the department’s Life Saving Award for his actions. Under a very stressful situation, he was able to retain, recall, and apply the lifesaving training he had received. Officer Hubbard saved a young life and earned the respect of the community.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Third Wave of Operation "Money Don't Sleep" Leads to Multiple Arrests in West MemphisRead the Press Release
WEST MEMPHIS—A major arrest operation took place this morning in West Memphis when 22 people were arrested as part of an ongoing federal drug investigation. The 22 arrested suspects from the West Memphis area are part of a 32-defendant indictment that was unsealed today.
Operation “Money Don’t Sleep” is an ongoing investigation focused on lowering violent crime that stems from the distribution of illegal drugs. The goal of the operation is to identify and dismantle multiple drug trafficking organizations that distribute cocaine and methamphetamine.
Today’s arrests conclude the third phase of the investigation that was initiated in 2015 by the DEA Little Rock District Office and the West Memphis Police Department. The first phase of “Money Don’t Sleep” previously resulted in the arrests of 50 defendants in July 2017. With those drug traffickers removed, new distributors emerged to fill the void left in the drug market, leading to 22 arrests in the second phase in June 2019.
Law enforcement began early this morning by searching for 28 suspects, all of whom were indicted for federal gun and drug trafficking crimes. Thirty-two defendants were indicted in the case, and 4 of those were already in custody when this morning’s roundup began. In addition to the 22 arrests, during the operation authorities seized 14 firearms and over $500,000 cash that is believed to be drug proceeds. Prior to today’s arrests, investigators seized approximately 1.2 kilograms of methamphetamine, 12 firearms, and over $8000 cash. In addition, a search warrant executed prior to today’s arrests resulted in law enforcement seizure of half a pound of methamphetamine, $7500 cash, and a firearm.
“We appreciate the work of our federal, state, and local law enforcement partners in conducting today’s arrest operation,” said United States Attorney Jonathan D. Ross. “Protecting the citizens of our local communities is our top priority, and we want the people of West Memphis to know that we will continue our efforts to make their neighborhoods safer.”
Six fugitives remain after this morning’s arrests. Law enforcement are still searching for Antonio Calloway, Tristan Harris, Early Bird Johnson, Reoscua Rogers, Robert Brown, and Jeremy McCleary. Most of the defendants who were arrested this morning will appear this afternoon for arraignment before United States Magistrate Judge J. Thomas Ray.
The DEA Little Rock District Office and West Memphis Police Department were assisted by several participating agencies, including the Bureau of Alcohol, Tobacco, Firearms, and Explosives; United States Marshals Service; United States Federal Probation; 2nd Judicial Drug Task Force; Arkansas State Police; Arkansas Highway Police; Crittenden County Sheriff’s Office; Arkansas Department of Community Corrections; and the Counter Drug Program of the Arkansas National Guard. The case is being prosecuted by Assistant United States Attorney Kristin Bryant and Special Assistant United States Attorney Lauren Eldridge.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
An indictment only contains allegations. A defendant is presumed innocent unless and until proven guilty.
# # #
This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
North Little Rock Man Charged with Arson in Connection with Two Coffee Shop FiresRead the Press Release
LITTLE ROCK— A North Little Rock man has been arrested and charged with arson following two fires at Little Rock coffee shops. Trent Tyrone Smith, 48, was charged in a criminal complaint on March 11, 2022. He was arraigned today before United States Magistrate Judge J. Thomas Ray.
On March 3, 2022, Little Rock Fire Department responded to calls from two separate locations of The Grind Coffee Bistro, one in Pleasant Ridge Town Center and one on 21st Street, both in Little Rock. Both locations had been deliberately set on fire. The coffee shop owner identified Smith as her former boyfriend. Smith was arrested on March 11, 2022.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives with assistance from the Little Rock Fire Department Fire Marshal’s Office and is being prosecuted by Assistant United States Attorney Benecia Moore.
A criminal complaint only contains allegations. A defendant is presumed innocent unless and until proven guilty.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Sherwood Woman Sentenced to 96 Months in Prison for Bank Fraud and Stealing from Social SecurityRead the Press Release
LITTLE ROCK—A Sherwood woman was sentenced today for bank fraud and theft of government funds. Kelli Hogue, formerly known as Kelli Cashion, 59, was sentenced to 96 months in federal prison by United States District Judge Lee P. Rudofsky.
Hogue was charged by a federal grand jury in October 2019, and the indictment alleged that she had been employed as a clerk and paralegal at the Herrod Law Firm in North Little Rock from 2009 until 2018. Hogue had previously been a licensed attorney in Arkansas from 1996 until 2001 but was prohibited from practicing law after a state forgery conviction.
While working for the law firm, Hogue was also employed as the bookkeeper for Runyan Sanitary Sewer District 211, a non-profit entity that owned and operated a sewage plant for the North Little Rock Water Department, from October 2010 until November 2018. From 2011 until 2018, Hogue wrote checks payable to herself from the Runyan bank account and deposited them into accounts she controlled, and she hid these checks by making false entries in QuickBooks, where they appeared as business expenses. She issued approximately 180 unauthorized checks to herself from Runyan’s bank account, held at National Bank of Arkansas and later at Arvest Bank, totaling approximately $669,599.71.
Hogue also falsified information in order to receive Social Security disability payments by informing the Social Security Administration (SSA) she had stopped working for the law firm in 2008 or 2009, which she had not. She did not report her work as a bookkeeper for Runyan, either, and she received additional disability payments during the time she worked as a bookkeeper. In this way, she stole approximately $120,523 in Social Security disability payments.
Hogue pleaded guilty in August 2021. In January 2022, Hogue submitted four letters to the Court in preparation of her sentencing in support of her request for a reduced sentence. Three letters purported to be from her doctors, and one letter claimed to be from her pastor. Federal investigators interviewed those whose signatures were on the letters, but all four people said they did not write the letters in support of Hogue and that Hogue had falsified them. Judge Rudofsky revoked Hogue’s pre-sentencing release and ordered her to remain in custody pending sentencing.
At today’s sentencing hearing, it became public that Hogue had already repaid $120,000 to the SSA and $669,000 to Runyan, but she did so with money she obtained after falsifying her federal tax returns and receiving over $4 million. The investigation regarding her false tax returns is ongoing.
“This defendant has spent years defrauding her employer as well as the government out of hundreds of thousands of dollars,” stated United States Attorney Jonathan D. Ross. “Her brazen theft is an injustice to those who pay into the system as well as those who truly need its assistance, and today’s sentence indicates the seriousness of her greed-fueled crimes.”
“For more than 10 years, Kelli Hogue committed fraud by continuing to receive Social Security disability insurance benefits while working. This sentence demonstrates that my office will continue to protect the integrity of the SSA and hold accountable those who defraud its programs,” said Gail S. Ennis, Inspector General for the SSA. “I want to thank the U.S. Attorney’s Office for prosecuting this case.”
In addition to the term of imprisonment, Judge Rudofsky also sentenced Hogue to five years of supervised release following her term of imprisonment and a fine of $100,000.00. The investigation was conducted by the United States Secret Service and the Social Security Administration – Office of the Inspector General, and the case was prosecuted by Assistant United States Attorney Pat Harris.
Federal Law Enforcement Focuses on Violent Crime in Helena-West HelenaRead the Press Release
HELENA-WEST HELENA-The FBI and the United States Attorney’s Office for the Eastern District of Arkansas have announced their increased focus on prosecuting violent crime in Helena-West Helena. United States Attorney Jonathan D. Ross announced today that 25 defendants in the Helena-West Helena area have been charged in federal indictments alleging various violent crimes including felon in possession of a firearm, possession of stolen bank funds, and interstate travel to have sex with a minor.
The most recent of these indictments, handed down by a federal grand jury on March 2, 2022, charges Michael Rogers with being a felon in possession of a firearm. Rogers is being investigated for the shooting that took place at the Helena-West Helena Christmas parade last year, cancelling the parade.
In addition to Rogers, 20 other defendants in the Helena-West Helena area have been charged since 2020 with being a felon in possession of a firearm. Three defendants have already been convicted and are awaiting sentencing: Walter Thornton, Jr.; Raymond Clark; and Carlton Otey. Frank Norton has been convicted and sentenced to ten years in prison, which is the statutory maximum. Nicholas Dismuke has been convicted of both being a felon in possession of a firearm and possession of a firearm in furtherance of a drug trafficking crime and sentenced to more than 18 years in prison. The remaining defendants, listed below, are awaiting trial.
In addition to felon in possession of a firearm cases, three additional defendants are charged with other crimes. Fleming Ivory has been convicted of interstate travel with the intent to engage in sexual conduct with a minor and is awaiting sentencing. Vann Bragg has been indicted for conspiracy to possess stolen bank funds and is awaiting trial, and Dedrick Bragg has been convicted of the same charge and is awaiting sentencing.
“These cases signify the presence of federal law enforcement in Helena-West Helena and the surrounding communities,” stated Ross. “Local communities deserve to be free from the effects of violence, and we will swiftly and forcefully respond to make communities in our district safer. There will be more prosecutions to come, and criminals in the Delta should know that we will not tolerate their violence and disregard of the law.”
“The FBI is working closely with local and state police agencies to combat the scourge of violent crime,” said FBI Little Rock Special Agent in Charge James A. Dawson. “To the criminals operating in the Delta, be warned— an arsenal of federal resources now opposes you. Alongside our partners at the U.S. Attorney’s Office, we will bring the full weight of the federal government down on the violent gangs terrorizing our Delta communities.”
The FBI is working these cases with the assistance of the Helena-West Helena Police Department. The cases are being prosecuted by the United States Attorney’s Office for the Eastern District of Arkansas.
The defendants awaiting trial for being a felon in possession of a firearm are:
- Michael Rogers;
- Demario Richardson;
- Xavier Hudson;
- Antonio Dolphin;
- Donterious Troope;
- Demarico Hay;
- Tylin Ezell;
- JC Watson;
- Macon Carter, Jr.;
- Macon Carter, Sr.;
- Treavie Shears;
- Deonta Miller;
- Timothy McNeely;
- Keith Taylor;
- Kenneth Page; and,
- Shannon Williams.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS