Eastern District of Arkansas
Press releases recorded for this federal judicial district.
North Carolina Man Sentenced to 15 Years in Prison for Enticing Arkansas Minor to Engage in Sexual ConductRead the Press Release
LITTLE ROCK—A North Carolina man was sentenced late Monday after traveling to Arkansas twice to have sex with a minor he enticed over the internet. United States District Court Judge Brian S. Miller sentenced Jonathan Berrier, 53, of Lexington, North Carolina, to 180 months in federal prison. Cody Hiland, the United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the FBI Little Rock Field Office, announced the sentencing.
In January 2017, Berrier reached out to a 13-year-old minor on Facebook, and they began talking through text messaging and telephone as well. The conversations became sexual in nature and continued through spring 2018. As the sexual content of their conversations increased, the defendant sent gifts and packages to the minor, which included cell phones.
The defendant travelled from North Carolina to Arkansas in February and March of 2018. On both occasions, he gave the minor a cell phone to communicate with him. Text messages retrieved from one of the phones revealed additional sexually explicit messages between the defendant and the minor. On both visits to Arkansas, the defendant had sexual intercourse with the minor.
“This defendant cultivated a long term, sexually explicit online relationship with a 13-year-old child, and he then leveraged that relationship to come into our state and sexually abuse her,” said U.S. Attorney Hiland. “Today’s 15-year sentence should serve as a warning to anyone who would take advantage of a minor online: if you come to Arkansas with the intent to sexually abuse a child, we will investigate and prosecute, and we will seek a lengthy sentence.”
Berrier was originally charged in a two-count indictment with one count of enticement of a minor and one count of travel to engage in illicit sexual conduct. The defendant pleaded guilty to enticement of a minor on September 25, 2020.
In addition to the prison term, Berrier was sentenced to ten years of supervised release following his imprisonment. He was also ordered to pay $2400 in restitution to the victim to assist in paying for counseling services. The investigation was conducted by 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
Little Rock Woman Pleads Guilty to COVID Relief Fraud:Read the Press Release
LITTLE ROCK—A Little Rock woman pleaded guilty to bank fraud this afternoon after fraudulently obtaining nearly $2 million in Paycheck Protection Program (PPP) loans intended to provide relief for small businesses affected by COVID-19. Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the FBI Little Rock Field Office, announced today the guilty plea of Ganell Tubbs, 41.
At today’s hearing, Tubbs admitted that she purported to own two businesses: The Little Piglet Soap Company, LLC, and Suga Girl Customs, LLC. According to the Arkansas Secretary of State, neither business is in good standing, and both businesses list Tubbs’ residence and personal phone number as the business contact information.
On April 30, 2020, Tubbs submitted a PPP application representing that Suga Girl Customs had paid $1,385,903 in wages and compensation during the first quarter of 2020. She was approved for a PPP loan of $1,518,887 and received the funds on May 5, 2020, but two days later, she used the proceeds to make an $8,000 payment on her personal student loan. The following week, Tubbs spent approximately $6,000 in online purchases at retailers including Apple, Michael Kors, Sephora, North Face, Nike, and others.
Similarly, on May 5, 2020, Tubbs submitted another PPP application, this time regarding The Little Piglet Soap Company. Based on the false representations she made in the loan application, The Little Piglet Soap Company received a PPP loan for $414,375.
“This defendant took almost two million dollars that were intended to keep small businesses afloat during COVID-related shutdowns,” stated U.S. Attorney Hiland. “Hardworking Arkansans needed these funds to pay their employees and support their families, and we will not tolerate fraudsters who lie to obtain these funds and then use them for their personal enjoyment. We ask anyone with information on suspected PPP fraud to please report it.”
The indictment, which was returned by a grand jury on July 7, 2020, charges Tubbs with two counts of bank fraud, two counts of making a false statement on a loan application, and one count of engaging in a monetary transaction with proceeds of unlawful activity. Tubbs pleaded guilty today to one count of bank fraud in exchange for dismissal of the remaining charges.
Tubbs’ plea was accepted this afternoon by United States District Judge Brian S. Miller, who will sentence Tubbs at a later date. The FBI, the Small Business Administration – Office of Inspector General, and the U.S. Treasury Inspector General for Tax Administration conducted the investigation. Assistant United States Attorneys Pat Harris and Jamie Dempsey 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
Former Craighead County Clerk Federally IndictedRead the Press Release
LITTLE ROCK - A federal grand jury has indicted former Craighead County Clerk Jacob Kade Holliday for allegedly taking more than $1.4 million in county money for his personal use. Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the FBI Little Rock Field Office, announced the indictment of Holliday, 32, of Jonesboro.
The indictment, which was returned by the grand jury late on December 1, 2020, alleges that Holliday, as the elected County Clerk in Craighead County, served as the official bookkeeper of county government. In that capacity, Holliday was tasked with keeping an accurate account of all financial transactions within the county. The funds Holliday controlled included county payroll tax obligations as well as employment retirement contributions.
According to the indictment, from January 29, 2020, to June 24, 2020, Holliday transferred money from the Craighead County Clerk’s banking account to his own personal and business accounts. He then allegedly obtained cashier’s checks in approximately the same amounts and further converted them to his own use.
“We take all allegations of undermining public trust very seriously,” stated U.S. Attorney Hiland. “In this case and in all potential cases, any reports of public corruption will be thoroughly investigated by our office with the help of our law enforcement partners.”
“Without the diligent efforts of our partners at the Arkansas State Police, Mr. Holliday’s alleged theft of over $1.4 million from the citizens of Craighead County would not have been uncovered,” said FBI Special Agent in Charge Upchurch. “Every day, we work closely with our state partners to protect Arkansans from crimes like the ones alleged in this case.”
Holliday is charged with 11 counts of wire fraud; one for each of the 11 transactions he made during the time alleged in the indictment. Holliday will appear before United States Magistrate Judge Joe J. Volpe for plea and arraignment on December 17, 2020. The maximum penalty for wire fraud is not more than 20 years’ imprisonment, a fine of not more than $250,000, and not more than three years of supervised release.
The FBI and the Arkansas State Police conducted the investigation. Assistant United States Attorney Allison W. Bragg is prosecuting the case.
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
Former Youth Pastor Pleads Guilty to Transporting Minors for Sexual ActivityRead the Press Release
LITTLE ROCK – A former Little Rock youth pastor pleaded guilty today to transporting minors across state lines for the purpose of unlawful sexual activity. Robert Shiflet, 50, now of Denton, Texas, entered his guilty plea earlier today before United States District Judge Lee P. Rudofsky. Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the Little Rock Field Office of the FBI, announced today’s guilty plea
Shiflet pleaded guilty to two separate instances of criminal conduct. One of these accounts began in 1996, when Shiflet met a 14-year-old girl in the youth group he pastored in Denton, Texas. Shiflet frequently made inappropriate comments to the minor and often told her he loved her. In May of 1997, when the minor was 15 years old, Shiflet led an eighth grade camping trip to the Buffalo National River in Arkansas. Shiflet was able to isolate the minor away from the group and then sexually assaulted her. He told her not to tell anyone.
Another minor reported that in 2002, when Shiflet was her youth pastor at a Little Rock church, Shiflet engaged in inappropriate sexual contact with her when she was 16 years old. Shiflet had sex with the minor multiple times during 2002-2003, when Shiflet was 32. In the summer of 2002, the youth group attended an event in Panama City, Florida. On that trip, Shiflet asked the minor to ride on the charter bus with him instead of riding on another bus with her friends. On the bus ride, he sexually assaulted the minor.
“This defendant took advantage of his position of trust as a mentor to young people and instead used his power to isolate and sexually abuse them,” stated U.S. Attorney Hiland. “This predatory behavior is never acceptable, but it is particularly disturbing when the offender is a youth pastor. Our office will continue to aggressively pursue those who commit these deplorable crimes.”
Shiflet was indicted in June 2020 with three counts of transportation of a minor to engage in illegal sexual activity and one count of coercion of a minor to engage in sexual activity. In exchange for his guilty plea, the remaining charges were dismissed.
Judge Rudofsky will sentence Shiflet at a later date. Transportation of a minor to engage in illegal sexual activity is punishable by not more than 15 years imprisonment and not more than three years of supervised release. The case was investigated by the FBI 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
Jonesboro Man Arrested for Allegedly Producing Child PornographyRead the Press Release
LITTLE ROCK-A Jonesboro man has been charged with producing child pornography. A federal grand jury has charged Justin Palmer, 41, with two counts of production of child pornography and one count of attempted production of child pornography. Palmer was charged on October 8, 2020, and was arrested the following day. He was arraigned today before United States Magistrate Judge Beth Deere.
Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, FBI Special Agent in Charge of the Little Rock Field Office, announced the charges today.
The indictment alleges that Palmer attempted to get one minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of that conduct. The indictment also alleges that Palmer succeeded in getting two other minors to send him photos or videos of themselves engaged in sexually explicit conduct.
“At this point in time, federal investigators have not identified any alleged victims in the northeast Arkansas area,” stated Connor Hagan, FBI Public Affairs Officer. “If our investigation later uncovers victims in Arkansas, FBI Victim Specialists stand ready to assist the victims and their families.” More information regarding FBI Violent Crimes Against Children investigations can be found here: www.fbi.gov/cac.
The penalty for producing and for attempting to produce child pornography is not less than 15 years’ imprisonment up to life imprisonment. All three charges carry a fine of up to $250,000 and not less than five years of supervised release.
The investigation is being conducted by the FBI with assistance from the Jonesboro Police Department, Jonesboro Police Department Internet Crimes Against Children, and Arkansas State Police Company F. This case is being prosecuted by Assistant United States Attorney Allison W. Bragg.
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
Doctor Pleads Guilty to Obstructing Telemedicine InvestigationRead the Press Release
LITTLE ROCK-A Dallas-area doctor pled guilty this afternoon to obstructing a federal health care investigation. Cody Hiland, United States Attorney for the Eastern District of Arkansas, Michael C. Mentavlos, Special Agent in Charge of the Defense Criminal Investigative Service Southwest Field Office, Patrick Roche, Acting Special Agent in Charge of the Department of Veterans Affairs Office of Inspector General South Central Field Office, Miranda L. Bennett, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services, and Diane Upchurch, Special Agent in Charge of the FBI Little Rock Field Office, announced Dr. Lorraine De Blanche, 56, pled guilty this afternoon before U.S. District Judge Brian S. Miller.
Patient complaints and a surge in claims for durable medical equipment (DME) and compounded prescription drugs triggered investigations into telemedicine fraud targeting federal insurers, including TRICARE, CHAMPVA, and Medicare. This prompted federal investigators to speak with medical providers linked to related DME claims and prescriptions.
In March 2019, Special Agents from DCIS and VA-OIG interviewed Dr. De Blanche about her work for telemedicine companies in 2015 and 2016, while she was practicing in Little Rock. During the interview she acknowledged working for the companies at issue but willfully misled agents about her telemedicine consultations. Dr. De Blanche reported she always evaluated patients by telephone before determining whether or not compounded prescription drugs or DME were needed. As Dr. De Blanche would later admit, however, on repeated occasions she ordered the products without first consulting patients.
U.S. Attorney Hiland stated “health care is a trillion-dollar industry. My office is committed to purging it of fraud. Serious consequences await those who hinder that task by misleading our partners in federal law enforcement.”
“The Defense Criminal Investigative Service is committed to ensuring that TRICARE, the U.S. military healthcare program, continues to provide safe and superior medical care to America’s Warfighters,” said DCIS SAC Mentavlos. “Fraudulent telemedicine schemes not only expose beneficiaries to potential harm, but also waste valuable taxpayer dollars.”
“CHAMPVA is a Department of Veterans Affairs health care benefit program for dependents of living veterans rated 100% disabled, for dependents of veterans whose death was service connected, and for dependents of veterans who were rated as 100% disabled when they died,” said VA-OIG ASAC Roche. “This guilty plea sends a clear message that there will be severe consequences for anyone who obstructs an investigation involving this important program.”
“When doctors knowingly mislead investigators who are working to uncover fraudulent activity, they violate the trust placed in them by patients, taxpayers, and the government,” said HHS-OIG SAC Bennett. “Along with our law enforcement partners, we will continue to protect the integrity of federal healthcare programs.”
“Each year, billions of dollars are lost and hundreds of lives are endangered in health care fraud schemes,” said FBI SAC Upchurch. “Dr. De Blanche willfully misled federal agents tasked with investigating one such scheme. Today’s guilty plea is the result of great work by our agents and partners at the DCIS, VA-OIG, and HHS-OIG.”
Obstructing federal health care investigations is punishable by up to five years’ imprisonment. Under the terms of her plea agreement, Dr. De Blanche agreed to forfeit over $33,000.00 in telemedicine proceeds and pay a $180,000.00 fine. She will be sentenced at a later date.
This case was investigated by DCIS, VA-OIG, HHS-OIG, and the FBI. Assistant United States Attorneys Alexander D. Morgan and Stephanie G. Mazzanti prosecuted the case for the United States.
Jury Finds Little Rock Felon Guilty of Possessing a FirearmRead the Press Release
LITTLE ROCK—After a two-day trial, a federal jury has found Antoine Ladale Perkins, 41, guilty of being a felon in possession of a firearm. The jury returned their verdict late Tuesday afternoon after trial began on Monday and continued with testimony on Tuesday. United States District Judge Brian S. Miller presided over the trial, and Judge Miller will sentence Perkins, of Little Rock, at a later date.
On December 22, 2017, a Little Rock Police Sergeant was driving in the area of Fulton Street in Little Rock, near Perkins’ home, when someone opened fire on the Sergeant’s undercover vehicle. Investigators recovered spent shell casings from Perkins’ yard and front porch, the scene of the shooting. Officers recovered a Norinco rifle from inside Perkins’ home, and Perkins confessed to bringing the firearm to his house. The Arkansas State Crime Lab confirmed that some of the shell casings were fired from the Norinico rifle.
“This case involved the ambush of an undercover police officer in the line of duty,” said Cody Hiland, United States Attorney for the Eastern District of Arkansas. “Violent attacks against those who put their lives on the line every day to protect and serve our citizens will not be tolerated by this office.”
Because Perkins is a felon, it is illegal for him to possess a firearm. A grand jury indicted Perkins on one count of being a felon in possession of a firearm in January 2020. He has a prior federal conviction for aiding and abetting the armed assault of a postal employee and using a prohibited weapon during a crime of violence, and he has a state conviction for possession of cocaine with purpose to deliver and possession of drug paraphernalia.
“In our effort to disrupt violent gun crime in our community, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) will continue to focus efforts on prohibited individuals, like Antoine Perkins, who unlawfully possess firearms,” said ATF New Orleans Field Division Special Agent in Charge Kurt Thielhorn. “ATF will continue to work tirelessly to protect our communities and hold accountable those who threaten our safety.”
The statutory penalty for being a felon in possession of ammunition is not more than 10 years imprisonment, not more than three years of supervised release, and not more than a $250,000 fine. The investigation was conducted by the Little Rock Police Department, ATF, and the FBI. The case was prosecuted by Assistant United States Attorneys Stephanie Mazzanti 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
Central Arkansas Drug Organization Dismantled After Arrest OperationRead the Press Release
LITTLE ROCK-A sweeping law-enforcement operation that involved numerous agencies and targeted members of a drug-trafficking organization responsible for the distribution of multiple kilograms of methamphetamine, heroin, and cocaine in central Arkansas resulted in more than a dozen arrests Tuesday morning.
The organization is alleged to be led by Britney Allen, 33, of Jacksonville. The indictment, which was returned by a Grand Jury on September 11, 2020, and unsealed today, named 20 other defendants alleged to be part of Allen’s organization. Law enforcement officers arrested 13 individuals in the early morning hours and served an arrest warrant Tuesday on one defendant already in state custody. Seven defendants are currently considered fugitives (see defendant list).
This investigation, named Operation Wagon Wheel, was the result of several law enforcement agencies, led by the Drug Enforcement Administration (DEA), attacking the drug-trafficking organization on multiple fronts. During the course of the investigation, which began in 2019, the DEA utilized court-authorized wiretaps to intercept hundreds of drug-trafficking calls, primarily involving Allen. Law enforcement officers, including DEA agents and several local police departments, conducted more than 10 controlled purchases of methamphetamine or heroin. Numerous seizures following local police arrests occurred as well. More than 10 kilograms of methamphetamine, and multiple ounces of heroin and cocaine have been seized, along with more than $50,000. At least eight firearms have also been recovered from the organization.
During arrest operations Tuesday morning, agents recovered several more ounces of methamphetamine and cocaine and approximately an additional $10,000 in suspected drug proceeds.
“This operation has taken 21 drug dealers off the streets of our communities,” stated Cody Hiland, United States Attorney for the Eastern District of Arkansas. “Drugs and violence go hand in hand, and removing firearms from these offenders is a major step towards creating a safer community. We will continue to work with our federal, state, and local partners to keep our district safe from the violence that accompanies drug trafficking.”
In addition, during the investigation officers discovered Allen was acquiring methamphetamine through the mail. The DEA and United States Postal Service identified numerous suspected drug packages being sent through the mail and recovered more than three pounds of methamphetamine.
“The Postal Inspection Service will spare no effort to disrupt criminal enterprises and present those involved for prosecution,” said Ketty Larco, Acting Inspector in Charge of the Fort Worth Division. “Postal Inspectors are committed to disrupting the activities of those who use the U.S. Mail in the course of their criminal activities. These arrests represent a commitment to safeguarding the Postal Service and its customers, and we appreciate the excellent work by the U.S. Attorney’s Office in addition to partnering federal and local agencies.”
Officers also executed search warrants at various houses alleged to be used by Allen and his associates to house and distribute drugs. The DEA coordinated with numerous local police agencies to adopt state charges into the overarching federal case. In all, the 21 defendants are named in 48 different counts.
The defendants include multiple individuals who have previously been convicted of state felonies, including prior convictions for drug trafficking or firearm possession.
“The damage caused by drugs and violence affects everyone across the nation, including here in the Eastern District of Arkansas,” DEA Assistant Special Agent in Charge Justin King said. “Our neighborhoods deserve to exist without fear and intimidation inflicted by violent drug gangs. The indictments and arrests of these individuals should be a warning to others who prey on the weak and defenseless through their drug trafficking and violent acts. We will continue to work with all of our law enforcement partners to relentlessly pursue these violent criminals and drug traffickers plaguing our communities.”
The investigation was led by the DEA, North Little Rock Police Department, and United States Postal Service, with assistance from the Sherwood Police Department, Jacksonville Police Department, Conway Police Department, Pulaski County Sherriff’s Office, Arkansas State Police, Arkansas Department of Community Corrections, Beebe Police Department, Saline County Sheriff’s Office, and the 14th Judicial Drug Task Force.
The charges in today’s unsealed indictment include conspiracy to distribute and possess with intent to distribute methamphetamine, heroin, and cocaine; distribution and possession with intent to distribute methamphetamine, heroin and cocaine; possession of a firearm in furtherance of a drug trafficking crime; felon in possession of a firearm; and use of a phone to facilitate a drug-trafficking crime.
The maximum penalty for the drug charges is not less than 10 years in prison and up to life imprisonment and a $10,000,000 fine. The maximum penalty for possessing a firearm in furtherance of a drug-trafficking crime is not less than five years in prison and up to life imprisonment and a $250,000 fine. The maximum penalty for being a felon in possession of a firearm is 10 years’ imprisonment and a $250,000 fine. The maximum penalty for use of a phone to facilitate a drug-trafficking crime is four years’ imprisonment and a $250,000 fine.
The defendants arrested today will appear before U.S. Magistrate Judge Patricia S. Harris on September 23, 2020, at 2:00 p.m. for plea and arraignment. The case, docketed as Case No. 4:20CR00267 DPM, is pending before U.S. District Judge Lee Rudofsky, and the trial date will be announced at plea and arraignment. The case is being prosecuted by Assistant United States Attorney Chris Givens. The defendants charged include:
Britney Decore Allen, a/k/a “Big B”, 33, Jacksonville *
Shakeba Allen, 35, Jacksonville, AR *
Cojan Bailey, a/k/a “Cojan Owens”, a/k/a “Cogee”, 44, Roe %
Joshua Dean Bath, 43, Flippin %
Michael Birts, a/k/a “Lil’ Mike”, 28, Jacksonville %
Scott Nickson Cain, 46, Jacksonville *
Cassandra Chambers, 36, Stuttgart *
Brittney Craig, a/k/a/ “Brittney Dismuke”, 40, Searcy *
James Cunningham, 25, Conway &
Shane Anthony Daugherty, 44, Sherwood *
Francisco Manuel Deltoro, 27, North Little Rock *
Tavio Gustravus Garrison, 32, North Little Rock *
Marlena Hales, 36, Beebe *
Jason Patrick Jackson, 34, Searcy *
Kevin Lamont Jarrett, 24, Jacksonville %
Shameka McClain, 37, Jacksonville %
Anthony Neal Reeves, 39, Stuttgart *
Anthony Charles Rowland, a/k/a “Duck”, a/k/a “D”, 41, Jacksonville %
April Jeanette South, 31, Jacksonville *
Nichlaus Vetor, 41, Greenbrier %
Andrew David Womble, 35; North Little Rock *
* arrested Tuesday
& in state custody
% fugitive
An indictment contains only allegations. Defendants are 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
Tennessee Man Sentenced to 23 Years in Prison for Production of Child Pornography Involving Arkansas MinorRead the Press Release
LITTLE ROCK—A Tennessee man was sentenced late Thursday on one count of production of child pornography. United States District Court Judge James M. Moody sentenced Craig Gillum, 55, of Shelbyville, Tennessee, to 280 months in federal prison. Cody Hiland, the United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the FBI Little Rock Field Office, announced the sentencing.
In January 2018, the parents of a 16-year-old female reported to authorities that she was missing from her home in Trumann, Arkansas. Officers identified the minor’s email and searched the account, which revealed sexually explicit messages from Gillum. In some of the emails, Gillum sent explicit photos of himself to the minor, and he requested and received images of child pornography from the “little girl,” as he referred to her in the messages.
On February 1, 2018, investigating agents learned the minor was located at a motel room in Nebraska with Gillum. Agents found the minor, whose hair had been cut and colored. The minor told investigators Gillum had picked her up in Trumann and driven her to Nebraska.
“This defendant manipulated a child into sending explicit images and then transported her out of the state to continue his depravity,” said U.S. Attorney Hiland. “Fortunately, he will spend the next 23 years in prison, where he cannot harm another child. We will seek the same lengthy sentence for anyone who seeks to take advantage of children in our communities.”
“Mr. Gillum’s despicable crimes separated an underage girl from her family and placed her in a repugnant situation,” said FBI Little Rock Special Agent in Charge Diane Upchurch. “Our agents work every day to counter evil in our state, which is why I’m so pleased they were able to apprehend Mr. Gillum and rescue his young victim. We urge anyone with information about child sexual abuse to contact the FBI immediately!”
On December 4, 2018, Gillum was charged in a three-count indictment with two counts of production of child pornography and one count of receipt of child pornography. The defendant pleaded guilty to one count of production of child pornography on August 1, 2019.
In addition to the prison term, Gillum was sentenced to ten years of supervised release following his imprisonment. The investigation was conducted by the FBI, and 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
Clarksville Man Sentenced to More Than 21 Years in Prison for Meth Conspiracy:Read the Press Release
LITTLE ROCK—A Clarksville man was sentenced today for his role in a methamphetamine conspiracy that involved members of a white supremacist gang. Skippy Sanders, 37, was sentenced to 262 months in federal prison by United States District Judge Brian S. Miller. Cody Hiland, United States Attorney for the Eastern District of Arkansas, announced today’s sentencing.
Sanders pleaded guilty to conspiring to distribute five kilograms or more, but less than 15 kilograms, of methamphetamine on October 23, 2019. In addition to the term of 262 months’ imprisonment, Judge Miller also sentenced Sanders to five years of supervised release following his term of imprisonment.
In 2016, 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 Sanders obtained pound quantities of methamphetamine from known members of New Aryan Empire (NAE), a white supremacist organization that began as a prison gang, and later sold the methamphetamine.
“Today’s sentence in Operation ‘To The Dirt’ is an important step in pushing back against the turmoil brought about by gang activity in the River Valley,” said Cody Hiland, United States Attorney for the Eastern District of Arkansas. “We will continue to investigate and prosecute methamphetamine distribution in this as well as other corrupt organizations.”
Sanders was charged on October 3, 2017, in a federal indictment that charged 44 people from the Pope County area with 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.
A federal grand jury returned a superseding indictment on February 5, 2019, which named 11 additional defendants and added charges for the defendants’ involvement in acts involving attempted murder, kidnapping, maiming, and conspiracy to distribute methamphetamine. Of the 55 total defendants charged in “Operation ‘To The Dirt,’” 26 defendants have pleaded guilty, and five 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. The remaining defendants are awaiting trial.
The investigation included the Bureau of Alcohol, Tobacco, and Firearms, the Drug Enforcement Administration, and the Federal Bureau of Investigation, as well as the Pope County Sheriff’s Office and the Russellville Police Department.
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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 Convicted Felons Who Possessed Firearms Each Sentenced to 180 Months in Federal PrisonRead the Press Release
LITTLE ROCK-Two multi-convicted felons will spend the next 180 months in federal prison for illegally possessing a firearm. Cody Hiland, United States Attorney for the Eastern District of Arkansas, announced the sentences, which were handed down today in federal court. Demarcus King, 35, of North Little Rock, was sentenced by United States District Judge Kristine G. Baker, and Larry Anthony Smith, 49, of Little Rock, was sentenced by Chief United States District Judge D.P. Marshall, Jr.
Both King and Smith are considered armed career criminals, which means their criminal histories include at least three prior convictions for a violent felony, serious drug offense, or both. As armed career criminals, each defendant was subject to a 15-year mandatory minimum sentence, which is what each received. King admitted prior convictions for delivery of cocaine, residential burglary, possession of drug paraphernalia, and possession of cocaine and alprazolam (Xanax) with purpose to deliver. Smith admitted prior convictions for 2nd degree murder, theft by receiving, 2nd degree battery (twice), forgery, simultaneous possession of drugs and firearms, possession of firearms by certain persons, and possession of cocaine. Both defendants were sentenced to three years of supervised release to follow their 15-year prison sentences.
“These two cases are perfect examples of how we can use the federal system to target the most violent offenders,” stated U.S. Attorney Hiland. “These career criminals will spend 15 years in prison, where they will no longer create chaos and danger in our communities. Violent felons should take note that we can and will seek these lengthy sentences for those who make a career out of committing violent crime.”
King pleaded guilty to one count of being a felon in possession of a firearm on January 17, 2020. At that hearing, King admitted that on December 4, 2017, he reported to his state parole officer for a scheduled office visit. The parole officer decided to conduct a routine parole search, as King had a signed search waiver on file as part of his probation. On the way to the residence, King suddenly became unresponsive and was transported by ambulance to a hospital. Other officers proceeded to King’s residence, where his mother provided consent for them to enter and search. His mother identified King’s room and told officers that no one else used that bedroom. Inside King’s bedroom, officers found a nine-millimeter Glock pistol, which was loaded with 14 rounds of ammunition and one in the chamber.
Smith pleaded guilty to one count of being a felon in possession of a firearm on March 3, 2020. At that hearing, Smith admitted that on July 12, 2018, police were called due to a disturbance at a residence. When officers arrived, Smith came to the door holding a black .38 caliber revolver, which was loaded with four live rounds. Smith provided a false name and birthdate to police and was eventually taken into custody.
These cases are part of Project Safe Neighborhoods, a Department of Justice initiative designed to create and foster safer neighborhoods through a sustained reduction in violent crime, including addressing criminal gangs and the felonious possession and use of firearms. The program has been effective in reducing violent crime because of the ongoing coordination, cooperation, and partnerships of local, state, and federal law enforcement agencies.
For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
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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 Prosecutor Partners with United States Attorney's OfficeRead the Press Release
JONESBORO—A Deputy Prosecuting Attorney in Craighead County has been named a Special Assistant United States Attorney, enabling her to assist in federal prosecutions. Charlene Davidson Henry, a Jonesboro resident who has practiced law in Arkansas since 1999, has been hired by United States Attorney Cody Hiland for the Eastern District of Arkansas.
“Violent crime reduction has been the top priority of our office, and we want to continue by focusing on Craighead County,” U.S. Attorney Hiland said. “We are confident that Ms. Henry’s training and experience will make her an asset to our team and will have an impact in reducing violent crime in Northeast Arkansas.”
United States Attorney’s Offices across the nation have the ability to hire state prosecutors as Special Assistant United States Attorneys (SAUSAs). This equips state prosecutors to work federal cases while maintaining their state position. Since 2017, the Eastern District of Arkansas has emphasized partnerships with SAUSAs in order to carry an increased caseload. In 2018, federal prosecutions increased by 82%, largely based on prosecutions of felons who possess firearms. This increase resulted in federal prosecutors in the Eastern District of Arkansas having the fifth-highest caseload in the nation.
The heavy focus on prosecuting violent crime resulted in a 24% reduction in homicides in Little Rock for 2018. That same year, similar efforts in West Memphis produced a 43% decrease in homicides. Both cities also saw reductions in non-fatal shootings, terroristic acts, and battery cases. “We want these efforts with our state and local partners to continue making a difference in the communities we serve, and Craighead County is no exception,” stated Hiland.
“Ms. Henry is an outstanding lawyer. She is tough but fair, and her experience as a public defender makes her especially qualified to evaluate cases from the prosecution side,” stated Scott Ellington, Prosecuting Attorney for the Second Judicial District. “Our office is proud to participate in this joint endeavor with our federal partners by sharing the talents of one of our best prosecutors.”
Henry currently prosecutes digital crimes, sex crimes, and gun crimes for Craighead County. She has previous experience as a Task Force Coordinator for the Second Judicial Drug Task Force, where she trained Task Force members and coordinated prosecutions between multiple jurisdictions. She now serves as the Task Force Coordinator for the Second Judicial District Organized Criminal Activity Task Force, which investigates offenses including drug trafficking, money laundering, arms trafficking and possession, crimes of violence such as murder and aggravated assault, robbery, and violent street gangs. In her 13 years as a lawyer with the Arkansas Public Defender Commission, she handled cases involving capital murder, murder, rape, computer crimes, and other serious felonies. She is a graduate of East Tennessee State University and the University of South Dakota School of Law.
The firearm investigations that Henry will handle are part of Project Safe Neighborhoods, a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, and community leaders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them.
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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 Felon Guilty of Possessing AmmunitionRead the Press Release
LITTLE ROCK—After a two-day trial, a federal jury has found Anthony Obi, Jr., 29, guilty of being a felon in possession of a firearm. The jury returned their verdict Tuesday evening after trial began on Monday and continued with testimony on Tuesday. United States District Judge James M. Moody, Jr., presided over the trial, and Judge Moody will sentence Obi, of Little Rock, at a later date.
“Felons with guns are a threat to the safety of our communities,” said Cody Hiland, United States Attorney for the Eastern District of Arkansas. “This defendant fired a gun into a car full of people. We will not tolerate this reckless, dangerous behavior. This guilty verdict should signify to felons with firearms that we will investigate and prosecute them for the havoc they attempt to wreak in our society.”
Testimony during the trial established that in June 2019, police responded to a call in Southwest Little Rock. Officers made contact with four victims who stated that Anthony Obi had shot at their vehicle four or five times, striking the vehicle at least once and causing slight injuries when the glass from the driver’s side window broke. Obi was arrested shortly thereafter, wearing clothing that matched the description from the victims. He did not have a gun at the time of arrest, so he was charged with possessing the spent .45 caliber ammunition casings that were found at the scene.
Because Obi is a felon, having been convicted of possession of a controlled substance with intent to distribute in 2008, it is illegal for him to possess ammunition. A grand jury indicted Obi on one count of being a felon in possession of ammunition in November 2019.
“The Bureau of Alcohol, Tobacco, Firearms, and Explosives, in this joint effort, will continue to focus on repeat offenders like Anthony Obi, Jr., who is prohibited from possessing firearms,” said ATF New Orleans Special Agent in Charge Kurt Thielhorn. “Reducing firearm related crimes and keeping our neighborhoods and communities safe is the top priority for ATF.”
The statutory penalty for being a felon in possession of ammunition is not more than 10 years imprisonment, not more than three years of supervised release, and not more than a $250,000 fine. The investigation was conducted by the Little Rock Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the case was prosecuted by Assistant United States Attorneys 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
Former Prison Guard Sentenced to Prison for Smuggling ContrabandRead the Press Release
LITTLE ROCK—A Wynne man was sentenced today for his role in smuggling tobacco and cellular telephones into the Federal Correctional Complex in Forrest City where he worked as a guard. United States District Court Judge Kristine G. Baker sentenced Josue Duane Garza, 42, to 12 months and one day in federal prison. Cody Hiland, the United States Attorney for the Eastern District of Arkansas, announced today’s sentencing.
In June 2018, an inmate at the Federal Correctional Complex in Forrest City, Arkansas, informed prison officials that his family had been purchasing tobacco and cell phones and mailing them, along with cash, to Garza at a P.O. Box in Colt. The inmate reported that another inmate had started the scheme but had been transferred to another facility, leaving this inmate to take over the scheme.
Both inmates confirmed that their parents had purchased tobacco and cell phones, mailed them to Garza’s P.O. Box, and included cash. The parents received money orders and cash from other inmates’ families, who were paying for the inmates’ purchases. The inmates said they split the proceeds with Garza. In an interview, Garza admitted that he had conducted the scheme from October 2017 through July 2018 and received over $40,000. On August 23, 2019, Garza pleaded guilty to an Information charging him with Bribery of a Public Official.
“This defendant’s blatant contraband scheme was an abuse of his authority as a federal prison guard,” U.S. Attorney Hiland said. “Smuggling illicit cell phones into prison allows convicted felons to continue their criminal activity, even from inside the prison walls. Today’s sentence demonstrates that those who seek to profit from these underhanded dealings will soon find themselves among the inmates they formerly enabled.”
In addition to the prison term, Garza was sentenced to one year of supervised release following his imprisonment. The investigation was conducted by the Federal Bureau of Prisons, Department of Justice Office of Inspector General and U.S. Postal Inspection Service, and the case was prosecuted by Assistant United States Attorney 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
West Memphis Man Sentenced to More Than 20 Years in Prison for Methamphetamine ConspiracyRead the Press Release
LITTLE ROCK—A West Memphis man was sentenced today to 250 months in federal prison for his involvement in a methamphetamine conspiracy. Cody Hiland, United States Attorney for the Eastern District of Arkansas, announced that Karlen Ingram, 38, was sentenced as part of Operation Money Don’t Sleep, which targets drug trafficking in West Memphis and the surrounding areas.
In September 2015, the Drug Enforcement Administration (DEA) and West Memphis Police Department began investigating a drug trafficking organization in West Memphis. During this investigation, federal agents learned Ingram was a supplier of cocaine and crack cocaine for numerous individuals. In late 2015 and early 2016, agents made six controlled purchases of crack cocaine from Ingram, all of which occurred at his home.
After several court-authorized wiretaps of Ingram’s cell phones, agents intercepted multiple communications of Ingram conducting narcotics transactions and learned that he later shifted from primarily distributing cocaine to also dealing in methamphetamine. The investigation revealed that Ingram and his co-conspirators used the U.S. Postal Service to ship illegal narcotics, which continued through January 2017.
On July 11, 2017, a grand jury returned an indictment charging Ingram and others with one count of conspiracy to possess with intent to distribute and to distribute methamphetamine. Ingram pleaded guilty on October 2, 2019. Today, United States District Court Judge James M. Moody Jr. sentenced Ingram to more than 20 years in prison, followed by five years of supervised release. There is no parole in the federal system.
“This defendant and his co-conspirators conducted a high-level drug trafficking scheme that endangered our communities in Eastern Arkansas,” stated U.S. Attorney Hiland. “This lengthy sentence is a testament to the dedication of our law enforcement partners, with whom we share a tireless commitment to maintaining law and order in our state.”
Operation Money Don’t Sleep is an Organized Crime Drug Enforcement Task Force investigation that is being conducted by the DEA, the West Memphis Police Department and the U.S. Postal Inspection Service.
# # #
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
Carlisle Man Sentenced to 15 Years in Prison for Distribution of Child PornographyRead the Press Release
LITTLE ROCK—A Carlisle man was sentenced today on one count of distribution of child pornography. United States District Court Judge James M. Moody Jr. sentenced Stuart Adams, 34, to 15 years in federal prison. Cody Hiland, the United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the FBI Little Rock Field Office, announced today’s sentencing.
In February 2019, an undercover FBI agent posted an advertisement online, indicating that he was seeking children for sexual purposes. Adams responded to the ad and began texting the undercover agent. In the texts, Adams expressed interest in meeting the agent’s fictitious eight-year-old daughter and having sex with her. Adams sent the agent two videos and one photograph that depicted child pornography.
Based on those interactions, the FBI obtained a search warrant for Adams’ residence in Carlisle. They seized a cell phone that contained three photos of sexually explicit material involving children. Law enforcement also seized a hard drive that contained 71 photos and six videos of child pornography, as well as various external drives and storage cards that contained additional photos and videos of child pornography.
“This defendant responded to an online advertisement because he was looking for an opportunity to sexually abuse a child,” U.S. Attorney Hiland said. “In his attempts to build trust with whom he believed to be his victim’s father, he distributed child pornography. Today’s sentence demonstrates that those who target our children will not go unpunished, and we will aggressively investigate and prosecute anyone who attempts to victimize children in our communities.”
“Stuart Adams’ sentence today sets the tone for how we will handle child predators in our state,” Special Agent in Charge Upchurch said. “If you harm a child, we will investigate you, we will arrest you, and with help from our United States Attorney’s Office partners, we will prosecute you to the fullest extent of the law. We urge our Arkansas neighbors to remain vigilant against child predators and to immediately report suspected cases of violence against children to the FBI.”
On June 5, 2019, Adams was charged in a three-count indictment with two counts of distribution of child pornography and one count of possession of child pornography. The defendant pleaded guilty to one count of distribution of child pornography on February 3, 2020.
In addition to the prison term, Adams was sentenced to five years of supervised release following his imprisonment. The investigation was conducted by the FBI, and 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
Little Rock Woman Charged with COVID Relief FraudRead the Press Release
LITTLE ROCK - A Little Rock woman was arrested this afternoon based on allegations she fraudulently obtained nearly $2 million in Paycheck Protection Program (PPP) loans intended to provide relief for small businesses affected by COVID-19. Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the FBI Little Rock Field Office, announced today the indictment of Ganell Tubbs, 41.
The indictment alleges that Tubbs purported to own two businesses: The Little Piglet Soap Company, LLC, and Suga Girl Customs, LLC. According to the Arkansas Secretary of State, neither business is in good standing, and both businesses list Tubbs’ residence and personal phone number as the business contact information.
On April 30, 2020, according to the indictment, Tubbs submitted a PPP application representing that Suga Girl Customs had paid $1,385,903 in wages and compensation during the first quarter of 2020. She was approved for a PPP loan of $1,518,887 and received the funds on May 5, 2020, but the indictment states that two days later, she used the proceeds to make an $8,000 payment on her personal student loan. The following week, according to the indictment, Tubbs spent approximately $6,000 in online purchases at retailers including Apple, Michael Kors, Sephora, Northface, Nike, and others.
Similarly, on May 5, 2020, Tubbs submitted another PPP application, this time regarding The Little Piglet Soap Company. Based on the representations she made in the loan application, which the indictment alleges are not true, The Little Piglet Soap Company received a PPP loan for $414,375.
“These loans are meant to help small business owners who have suffered economically due to COVID-19 shutdowns,” stated U.S. Attorney Hiland. “Hardworking Arkansans are at their best when they are free to keep their businesses open during this challenging time, and we will be diligent in investigating and prosecuting those who take advantage of these critical funds.”
The indictment, which was returned by a grand jury on July 7, 2020, charges Tubbs with two counts of bank fraud, two counts of making a false statement on a loan application, and one count of engaging in a monetary transaction with proceeds of unlawful activity.
“Numerous businesses across Arkansas are struggling to remain open during this COVID-19 pandemic, so our office has zero tolerance for anyone who fraudulently misuses federal funds intended to help companies weather this tough time,” said FBI SAC Upchurch. “Alongside our federal and state partners, we will remain vigilant against fraudsters and ensure that PPP funds are used as intended.”
Tubbs appeared this afternoon before United States Magistrate Judge Thomas Ray and was released on bond. The FBI, the Small Business Administration – Office of Inspector General, and the U.S. Treasury Inspector General for Tax Administration conducted the investigation. Assistant United States Attorneys Pat Harris and Jamie Dempsey are prosecuting the case.
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
Former Youth Pastor Charged with Multiple Sex CrimesRead the Press Release
LITTLE ROCK—A former youth pastor appeared in federal court today to face charges involving illegal sexual contact with minors. Robert Shiflet, 50, was charged by a grand jury in an indictment handed down on June 2, 2020. He was arrested on June 12 at his home in Denton, Texas, and arraigned via Skype today in Little Rock before United States Magistrate Judge Jerome T. Kearney.
Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the FBI Little Rock Field Office, announced the indictment, which charges Shiflet with three counts of transporting a minor across state lines to engage in illegal sexual activity and one count of coercing a minor to cross a state line to engage in illegal sexual activity.
The indictment alleges that in or about May 1997, Shiflet transported a minor from Texas to Arkansas for the purpose of engaging in illegal sexual activity. The indictment alleges he did so again in March 2001 with a different minor, and from June through September of 2002 with a third minor. The indictment also charges Shiflet with enticing the third minor to cross a state line for the purpose of engaging in illegal sexual activity from June through September of 2002. During this time period, Shiflet worked as a youth pastor in Little Rock and later moved to Denton, Texas, where he had previously worked as a youth pastor.
The investigation is being conducted by the FBI and is being prosecuted by Assistant United States Attorney Kristin Bryant. Anyone with additional information to report about Robert Shiflet can call 1-800-CALL-FBI.
The penalty for transportation of a minor to engage in illegal sexual activity is not more than 15 years imprisonment. The penalty for coercion is not more than 10 years imprisonment. Both charges carry potential penalties of not less than five years of supervised release and a fine of not more than $250,000.
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
Former Accountant Sentenced to Five Years in Prison for Bank FraudRead the Press Release
LITTLE ROCK—A former accountant from Northeast Arkansas was sentenced today for bank fraud after stealing more than $9 million from his client in Trumann, Arkansas. Edward Cooper, 71, of Mammoth Springs, was sentenced to 60 months in federal prison by Chief U.S. District Judge D.P. Marshall, Jr.
Cooper worked as an accountant with the Osborn & Osborn accounting firm in Jonesboro and handled a number of financial affairs for Roach Manufacturing Corporation, a family business in Trumann. Beginning in approximately 1996, when he prepared dividend distribution checks and tax checks for Roach Manufacturing, he requested extra checks and then made them payable to himself.
Cooper deposited these checks into his own account without the permission or knowledge of Roach Manufacturing. In this way, he took approximately 138 unauthorized checks from 1996 through 2018, totaling over $9 million. In the fall of 2017, Roach Manufacturing hired a financial manager who detected the fraud, leading to the criminal case.
“This defendant took advantage of a family business that had placed their trust in him,” stated Cody Hiland, United States Attorney for the Eastern District of Arkansas. “His years of deceit have finally caught up with him. This sentence demonstrates our office’s commitment to prosecuting those who cheat our citizens out of their hard-earned money."
“Over the course of 20 years, Mr. Cooper embezzled over $9,000,000 from a local Arkansas company,” said FBI Little Rock Special Agent in Charge Diane Upchurch. “His sentencing today shows that the FBI and our partners will never stop seeking justice for victims of fraud. We encourage all Arkansas businesses to report suspicious activity to us immediately."
Cooper pleaded guilty in January 2020 to an Information charging him with one count of bank fraud. In addition to 60 months in prison, Chief Judge Marshall sentenced Cooper to two years of supervised release following his term of imprisonment. Cooper was also ordered to pay $7,401,744.82 in restitution. The case was investigated by 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
Colorado Couple Charged with Theft of Mail Containing Tax Return and Stimulus ChecksRead the Press Release
LITTLE ROCK— A man and woman from Colorado have been charged with possession of a stolen postal key and theft of mail, some of which contained a tax return check and a federal stimulus check intended for financial relief during the Covid-19 pandemic. David Alan Gilmore, 31, and Kathleen Lucille Johnson, 40, appeared for arraignment in federal court today before United States Magistrate Judge Jerome T. Kearney.
A complaint filed late Thursday alleges that on June 17, 2020, the Arkansas Highway Police in Conway initiated a traffic stop on a car that was displaying a stolen Colorado license plate. During the traffic stop, with assistance from Conway Police, officers located several bags full of mail, none of which was addressed to either Gilmore or Johnson. That mail contained six personal checks, one tax refund check, and one stimulus check.
In addition to the stolen mail, officers found 13 credit and debit cards in the vehicle, none of which were in the name of either Gilmore or Johnson. Officers also found a United States Postal Service key, which is used by postal carriers to open collection boxes, apartment delivery boxes, and neighborhood delivery collection box units.
The penalty for possessing a stolen postal key is not more than 10 years imprisonment, and the penalty for theft of mail is not more than 5 years imprisonment. Both crimes carry a fine of up to $250,000 and not more than three years of supervised release. The investigation is being conducted by the United States Postal Inspection Service.
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
Jury Finds Little Rock Man Guilty of Extortion and Production of Child PornographyRead the Press Release
LITTLE ROCK—In the first federal criminal jury trial in the state since the coronavirus pandemic began in March, a federal jury found Devion Cumbie, 24, guilty on all seven counts for which he was indicted: production of child pornography, two counts of attempted production of child pornography, and four counts of extortion.
The jury returned their verdict Thursday afternoon after deliberating for just under four hours. United States District Judge James M. Moody, Jr., presided over the three-day trial, and Judge Moody will sentence Cumbie, of Little Rock, at a later date.
“This defendant used the internet to manipulate his victims,” said Cody Hiland, United States Attorney for the Eastern District of Arkansas. “Today’s verdict sends a clear message to those who engage in these disgusting acts under the cloak of perceived anonymity: you will be identified, and you will be prosecuted to the fullest extent available to us under federal law.”
Testimony during the trial established that in late 2018, a 16-year-old girl in Colorado sent a Facebook message to “Chink Capone,” the online persona of an actor named Alex Drummond. However, the Facebook page actually belonged to Cumbie, posing as Drummond’s online persona. The two began talking, and Cumbie told the minor he might like to meet her soon but would first need to see some photographs of her in her underwear. Cumbie eventually convinced the minor to send him a partially nude photograph. Cumbie then threatened the minor that he would post the photo to her Facebook page unless she sent him a video of herself naked. The minor told her mother, and they reported the conduct to police.
Investigation revealed that Cumbie had conducted a similar scheme with numerous other victims, four of whom testified at trial, and some of whom were minors. Additionally, Cumbie was on pretrial release awaiting trial on federal gun charges while he engaged in the conduct that led to the child pornography and extortion charges. Cumbie was indicted by a federal grand jury in July 2019, and his first trial in February 2020 ended in a hung jury. A superseding indictment was filed earlier this month, resulting in this week’s trial and conviction. Cumbie is still awaiting trial on the separate firearms charges.
“Today’s conviction closes the book on a criminal who took advantage of women and minors over the internet,” said FBI Little Rock Special Agent in Charge Diane Upchurch. “Mr. Cumbie disguised his true identity on the internet and then callously exploited numerous victims for his own sexual gratification. Our agents and law enforcement partners worked tirelessly on this investigation, and we feel like justice has been served with the jury’s verdict.”
The statutory penalty for production of child pornography, as well as attempted production of child pornography, is not less than 15 years imprisonment, not more than 30 years imprisonment, and not less than five years of supervised release. The statutory penalty for extortion is not more than two years imprisonment and not more than one year of supervised release. All offenses of conviction include a potential penalty of not more than a $250,000 fine.
The investigation was conducted by the FBI, and the case was prosecuted by Assistant United States Attorneys Kristin Bryant and Erin O’Leary.
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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
Operation Mad Hatter Leads to Multiple Arrests in Pine BluffRead the Press Release
LITTLE ROCK—Twelve defendants are in custody after a DEA operation led to several arrests this morning as part of a federal drug investigation. Operation Mad Hatter has resulted in the identification of multiple drug traffickers and the seizure of large quantities of cocaine, ecstasy, methamphetamine, and heroin.
Operation Mad Hatter, run by the Organized Crime Drug Enforcement Task Force, is an ongoing DEA Domestic Cartel Initiative investigation. Today’s arrests follow the unsealing of indictments of 13 individuals who were charged by a federal grand jury on March 3, 2020. Of those, eight were taken into custody this morning, three were already in police custody, and one has made arrangements to turn herself in.
The investigation was initiated in June 2018 to target violent drug trafficking organizations operating in central Arkansas and, in particular, Pine Bluff. The investigation revealed that the Stuttgart Police Department was responding to drug and violence caused by a local gang organization called Porter Block Mafia, or PBM. Detectives reported this particular organization was responsible for several shootings and other violent crimes in Stuttgart. The organization was also known for selling crack cocaine, marijuana and illegally-obtained pills. Stuttgart police reported there have been several drug robberies in their city suspected to be carried out by the PBM organization.
The Pine Bluff Police Department and Jefferson County Sheriff’s Office advised investigators that the main violent gang organization in their community is known as Murder Gang and Murder MOB, or MOB. Local investigators advised that these violent organizations were responsible for three to four shootings a night in their community as well as several murders. Both agencies advised that the killings were related to narcotics and gang rivalries. Additionally, over 120 firearms had been stolen from a pawn shop in Pine Bluff, and police advised that they suspected MOB has been using these stolen weapons to commit crimes in their community.
In response to the drug and gun violence in Pine Bluff and Stuttgart, DEA launched Operation Mad Hatter in 2019. In February 2019, DEA made the first arrests related to the operation, and in August 2019, additional arrests resulted from activity uncovered during the ongoing investigation. Today’s arrests mark the third phase of the operation, which has resulted in a total of 43 arrests to date.
On March 3, 2020, the grand jury for the Eastern District of Arkansas returned an indictment charging Kendrick Thorn and 11 codefendants in a conspiracy to distribute methamphetamine, as well as firearms offenses. Thorn and three codefendants are charged with enhanced penalties based on prior convictions for drug trafficking and crimes of violence. Four additional defendants are indicted with drug trafficking and firearm offenses in separate indictments.
During the course of Operation Mad Hatter, investigators have seized 29 kilograms of methamphetamine, four kilograms of cocaine, one kilogram of MDMA (commonly known as ecstasy), 1.5 kilograms of heroin, 82 grams of fentanyl, over 200 diverted prescription pills, more than $107,000 in assets, and seven firearms. During today’s arrests, officers recovered an additional 600 grams of methamphetamine, approximately one pound of marijuana, three firearms, and approximately $6,000 in U.S. currency.
“Today’s arrests demonstrate that law enforcement is working hard to eradicate drugs and violence from our communities,” stated Cody Hiland, United States Attorney for the Eastern District of Arkansas. “This third phase of Operation Mad Hatter is an example of the continued pressure we will apply to drug trafficking organizations. We appreciate the efforts of our many law enforcement partners who were instrumental in carrying out this investigation.”
Shirley Washington, Mayor of Pine Bluff, stated, “The City of Pine Bluff is committed to revitalizing our community and making this a place of destination for families, students, and businesses to thrive. We support all efforts to make this a safe environment for such progress to grow and flourish.”
“Nothing is more important than the safety and security of our communities. This Domestic Cartel Initiative operation is a powerful attack against a violent drug trafficking organization and will have an immediate impact in this region of Arkansas and beyond,” DEA Assistant Special Agent in Charge Justin King said. “The resulting arrests demonstrate the combined strength local, state, and federal law enforcement agencies bring to bear in the fight against these domestic cartels and strike a substantial blow to their drug trafficking operations. By working together, we are leveraging our respective resources to achieve results that we could not accomplish on our own.”
“These arrests represent a lengthy investigation and send a clear message to drug traffickers. The U.S. Postal Inspection Service will defend the nation’s mail system from illegal use, and stopping the flow of dangerous drugs to our cities is a high priority,” said D. Glen Henderson, Acting Inspector in Charge of the Fort Worth Division. “Removing drugs from the streets and taking guns from criminals is always a victory for the community. We thank the U.S. Attorney’s Office, the Drug Enforcement Administration, and all county, state and local law enforcement officers who worked together with Postal Inspectors to make this investigation a success.”
Operation Mad Hatter is a joint investigation with participation from the DEA Little Rock District Office; FBI; United States Postal Inspection Service; United States Marshals Service; Bureau of Alcohol, Tobacco, Firearms, & Explosives; Arkansas State Police; Pine Bluff Police Department and the Narcotics Unit; Little Rock Police Department; North Little Rock Police Department; Benton Police Department; Jefferson County Sheriff’s Office; Pulaski County Sheriff’s Office; Saline County Sheriff’s Office; Central Arkansas Drug Task Force; and Arkansas Community Corrections.
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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
Arizona Man Sentenced to Eleven Years in Prison for Fentanyl Worth over $6 MillionRead the Press Release
LITTLE ROCK—An Arizona man was sentenced today to 132 months in federal prison for his involvement in a fentanyl conspiracy that took him through Russellville, Arkansas. Cody Hiland, United States Attorney for the Eastern District of Arkansas, announced that Herbierto Felix Ruiz, 48, was sentenced for conspiracy to possess fentanyl with intent to distribute.
On September 28, 2017, Arkansas State Police conducted a traffic stop in Russellville when a silver Hyundai Santa Fe crossed the center line on Interstate 40. Ruiz was the front seat passenger, and his name was on the car’s rental agreement. Ruiz had rented the car two days earlier in California. When the driver of the car and Ruiz gave conflicting stories to the officer, the officer asked to search their vehicle, and Ruiz consented to the search.
The officer found six packages wrapped in duct tape and hidden in the vehicle’s spare tire. The spare tire was a 15-inch tire, but the vehicle required 17-inch tires. The packages turned out to be over 15 pounds of fentanyl, which had a street value of over $6 million.
In November 2017, a grand jury charged Ruiz with conspiracy to possess with intent to distribute fentanyl. Then, in February 2018, an auto salvage business contacted law enforcement to report they had located a suspicious package in a vehicle they had purchased at auction from a car rental company. The vehicle was the same Hyundai Santa Fe from Ruiz’ previous traffic stop, and it contained an additional five kilograms of fentanyl that had not been found in the initial search.
On April 3, 2018, a grand jury charged Ruiz, and others, in a Superseding Indictment to increase the amount of fentanyl involved in the offense. Ruiz pleaded guilty on October 10, 2019. Today, United States Chief District Court Judge D. Price Marshall, Jr., sentenced Ruiz to eleven years in prison, followed by five years of supervised release. There is no parole in the federal system. Chief District Court Judge Marshall stated at the sentencing hearing that part of the basis for his sentencing decision was due to the danger involved with fentanyl.
"Fentanyl is an incredibly dangerous drug, and our office remains focused on removing it from our streets,” stated U.S. Attorney Hiland. “Today’s lengthy sentence is an example of the continued pressure we will apply to drug traffickers, especially those who bring this deadly substance into our communities.”
Fentanyl is the greatest and most significant synthetic opioid threat to the United States, including here in Arkansas, where as little as two milligrams is a lethal dose. This conviction and lengthy sentence should send a message to all drug traffickers that DEA will continue to work with all of our law enforcement partners to aggressively pursue those who ruthlessly traffic fentanyl and other dangerous drugs,” said DEA Assistant Special Agent in Charge Justin King.
The U.S. Attorney’s Office has placed significant focus on fentanyl in the Eastern District of Arkansas, especially highlighted by three separate takedown operations in October 2019. Those operations resulted in criminal charges against 49 people and seizure of over 1,600 grams of fentanyl. A single dose of fentanyl can be as small as one-sixteenth of a gram.
The Ruiz investigation was conducted by the Drug Enforcement Administration, Arkansas State Police, and the Fifth Judicial Drug Task Force.
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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 on-line at
http://www.justice.gov/edar
Twitter:
@EDARNEWS
Dover Man Sentenced to More Than 12 Years in Prison for Meth Distribution:Read the Press Release
LITTLE ROCK—A Dover man was sentenced Monday for distribution of methamphetamine in connection with white supremacist groups in the Pope County area. Joseph Pridmore, 34, of Dardanelle, was sentenced to 150 months in federal prison by United States District Judge Brian S. Miller. Cody Hiland, United States Attorney for the Eastern District of Arkansas, announced today’s sentencing.
Judge Miller also sentenced Pridmore, who pleaded guilty in October 2019 to distribution of methamphetamine actual, to five years of supervised release following his term of imprisonment.
In 2016, 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 Pridmore obtained multi-ounce quantities of methamphetamine from sources in Russellville and distributed the meth in ounces or grams to various individuals in the area.
Pridmore is a self-professed member of White Aryan Resistance, a white supremacist group with similar core beliefs and rank structure as the New Aryan Empire (NAE), a white supremacist organization that began as a prison gang. According to charging documents in the case, “it is not uncommon for the two groups to collaborate and comingle to further their criminal objectives, including narcotics distribution.”
“Today’s lengthy sentence in Operation ‘To The Dirt’ is one of many more to come,” said Cody Hiland, United States Attorney for the Eastern District of Arkansas. “When members of these violent white supremacist organizations use their warped ideology to facilitate drug trafficking, it will result in a significant prison term. We will continue to investigate and prosecute methamphetamine distribution in this as well as other corrupt organizations.”
Pridmore was charged on October 3, 2017, in a federal indictment that charged 44 people from the Pope County area with 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.
After Daniel Adame of Dardanelle became the first defendant to plead guilty in “To The Dirt,” a federal grand jury returned a superseding indictment on February 5, 2019, which named 11 additional defendants and added charges for the defendants’ involvement in acts involving attempted murder, kidnapping, maiming, and conspiracy to distribute methamphetamine. Adame was sentenced in May 2019 to 262 months in prison, Britanny Conner was Sentenced in October 2019 to 120 months in prison, and Pridmore is the third defendant to be sentenced in the case.
The investigation included the Bureau of Alcohol, Tobacco, and Firearms, the Drug Enforcement Administration, and the Federal Bureau of Investigation, as well as the Pope County Sheriff’s Office and the Russellville Police Department.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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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
West Memphis Man Sentenced to over 17 Years in Prison for Methamphetamine ConspiracyRead the Press Release
LITTLE ROCK-West Memphis man with a prior murder conviction was sentenced today to 210 months in federal prison for his involvement in a methamphetamine conspiracy. Cody Hiland, United States Attorney for the Eastern District of Arkansas, announced that Terry Whittier Jr., 39, was sentenced as part of Operation Money Don’t Sleep, which targets drug trafficking in West Memphis and the surrounding areas.
In September 2015, the Drug Enforcement Administration (DEA) and West Memphis Police Department began investigating a drug trafficking organization in West Memphis. As part of this investigation, agents received court authorization for numerous interceptions for cell phones, often called wiretaps. Investigators were able to intercept numerous phone calls in which Whittier coordinated drug transactions. Whittier and other coconspirators received their drug supply through the mail with the assistance of a postal employee, Cleavon Shaw, who has also been convicted and sentenced to 90 months in prison. With assistance of the United States Postal Inspection Service, agents seized more than six pounds of methamphetamine.
West Memphis Police later executed a search warrant at Whittier’s apartment, where they located approximately 55 grams of marijuana, 4.7 grams of methamphetamine, digital scales, a Glock pistol, and more than $11,000 in cash. Whittier’s involvement in the methamphetamine conspiracy took place while he was on parole for a second-degree homicide conviction, after he shot and killed Austin Kirkwood in 2002.
On July 11, 2017, a grand jury returned an indictment charging Whittier and others with one count of conspiracy to possess with intent to distribute and to distribute methamphetamine. Whittier pleaded guilty on September 18, 2019. In exchange for that plea, the government agreed to dismiss a related case charging Whittier with possession of a firearm in furtherance of a drug trafficking crime. Today, United States District Court Judge James M. Moody sentenced Whittier to more than 17 years in prison, followed by five years of supervised release. There is no parole in the federal system.
“Drugs and violence go hand in hand, and this defendant’s prior murder conviction demonstrates how important it is to keep our communities free of drug trafficking,” stated U.S. Attorney Hiland. “Today’s lengthy sentence shows that even in the midst of a global pandemic, justice will continue to be served. Criminals should know that law enforcement’s commitment to protect our community from those who would do us harm will remain steadfast and determined.”
“Methamphetamine is a highly addictive drug and one of the most destructive drugs we face today. DEA and our law enforcement partners are working hard to thwart the threat of methamphetamine distribution and abuse here in the West Memphis area and beyond,” said DEA Assistant Special Agent in Charge Justin King. “We have successfully collaborated with our local, state and federal partners in order to put this violent career criminal in federal prison for a long time as a result of his desire to supply the citizens in this community with methamphetamine.”
Operation Money Don’t Sleep is an Organized Crime Drug Enforcement Task Force investigation that is being conducted by the DEA and the West Memphis Police Department.
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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
Federal Attorney Celebrates 50 Years at U.S. Attorney's OfficeRead the Press Release
LITTLE ROCK– Richard Pence, an Assistant United States Attorney in Little Rock, celebrated his 50th year with the United States Attorney’s Office on Monday. Pence’s lifetime career as an AUSA makes him the longest serving employee of all 94 United States Attorney’s Offices across the nation.
Pence, known by some as “Scout,” began his career as an AUSA for the Eastern District of Arkansas on March 9, 1970. He joined the office under President Richard Nixon and has worked under eight other Presidents in his tenure. When he started as an AUSA, Pence worked on both criminal and civil cases. The Civil Division was created in 1980, and Pence became the District’s first Civil Chief—a position he held for 38 years. Pence served as Acting United States Attorney after President George H.W. Bush’s term and before President Bill Clinton appointed Paula Casey as United States Attorney.
“Richard’s lifetime of service to the U.S. Attorney’s Office has made a lasting impact on the Eastern District of Arkansas,” said U.S. Attorney Cody Hiland. “In a world where lasting commitment can be hard to find, Richard’s 50 years of tireless dedication are a shining example of what can be accomplished through devotion to a cause.”
The United States Attorney’s Office celebrated Pence’s commitment to public service with a celebration on Monday, where Pence received a letter from United States Attorney General William Barr in recognition of his outstanding dedication. In Pence’s honor, the main conference room at the U.S. Attorney’s Office will be renamed the Richard M. Pence Jr. Conference Room.
# # #
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
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former Executive Director of Nonprofit Sentenced for Illegally Diverting Charity Funds to Unnamed State Senator and Convicted LobbyistRead the Press Release
A former executive director of South Arkansas Youth Services (SAYS), an Arkansas-based nonprofit, was sentenced today to 30 months in prison followed by three years of supervised release for conspiring to unlawfully divert over $380,000 from the charity to an Arkansas state senator and the lobbying firm of a convicted lobbyist.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Acting U.S. Attorney David Clay Fowlkes for the Western District of Arkansas made the announcement.
U.S. District Judge Susan O. Hickey sentenced Jerry Walsh, 72, of Magnolia, Arkansas, who previously pleaded guilty to one count of conspiracy to misapply the nonprofit’s funds without authority from the board of directors. Judge Hickey also ordered Walsh to pay $515,631.56 in restitution.
As part of his plea, Walsh admitted that beginning in 2013, while serving as executive director for SAYS, he agreed to divert SAYS funds to convicted lobbyist Milton “Rusty” Cranford and an unnamed Arkansas state senator in exchange for the state senator’s influence in protecting the nonprofit’s state contracts with the Arkansas Department Health Services (DHS) and DHS’ Division of Youth Services (DYS). As part of that agreement, Walsh was to provide a monthly “legal retainer” to the Arkansas state senator without the expectation that the senator ever provide any legal work. Instead, the purpose of the payments was to obtain the senator’s assistance in preserving the contracts by influencing DHS and DYS officials. According to the plea, Cranford negotiated the amount paid to the senator, which amounted to over $120,000.
Additionally, as part of the conspiracy, Walsh admitted to paying Cranford’s lobbying firms above-market prices and employed a relative of Cranford who had a “no-show” job with SAYS. In total, Walsh illegally diverted approximately $262,000 in charity funds to Cranford’s lobbying firm and relative.
The FBI investigated this case along with the assistance of the Magnolia Police Department and the 13th Judicial District of Arkansas Prosecuting Attorney’s Office. Senior Litigation Counsel Marco A. Palmieri of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Ben Wulff of the Western District of Arkansas are prosecuting the case with the assistance of Deputy Prosecutor Ryan Phillips with the 13th Judicial District Prosecuting Attorney’s Office. This is a combined investigation with the Public Integrity Section, the Eastern District of Arkansas, the Western District of Arkansas and the Western District of Missouri.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Little Rock Men Plead Guilty in Wire Fraud ConspiracyRead the Press Release
LITTLE ROCK— Two Little Rock men have pleaded guilty to conspiracy to commit wire fraud after ordering cell phones through their employer, paying for them with the employer’s money, and selling the phones online. Daniel Burdick, 40, and Brian Lamb, 41, pleaded guilty on Friday before Chief United States District Judge D. Price Marshall, Jr. Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the Little Rock Field Office of the FBI, announced the guilty pleas.
Burdick and Lamb worked for the Center for Toxicology and Environmental Health (CTEH), a North Little Rock company that assists in environmental cleanups. Part of Burdick’s and Lamb’s responsibilities at CTEH was ordering new phones for CTEH employees and subcontractors. The phones would be used during environmental spills and cleanups.
In November of 2017, CTEH discovered that Burdick and Lamb were ordering cell phones without CTEH authorization or knowledge. Once they received the phones, Burdick and Lamb sold the cell phones via the internet. At that time, Burdick had worked at CTEH for 10 years, and Lamb had worked there for six years.
Burdick and Lamb would ship the cell phones to customers and receive payment through Paypal and Western Union. Most of the phones were sent to a customer in Oregon, who shipped them to China. Burdick and Lamb completed 283 transactions from 2013 through 2017, and most transactions included more than one cell phone. CTEH fired Burdick and Lamb upon discovering the conduct, but they (and their insurance carrier, Continental Casualty Company), lost approximately $562,501 due to the scheme.
Conspiracy to commit wire fraud is punishable by up to twenty years imprisonment, a fine of not more than $250,000, and up to three years of supervised release. This case is being investigated by the FBI and prosecuted by Assistant United States Attorney Patrick C. Harris.
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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 Texas Men Arrested for Transporting Stolen MoneyRead the Press Release
LITTLE ROCK— Four Texas men were arrested today on federal charges of transporting stolen money as well as conspiring to transport stolen money. The defendants, all of Dallas—Antonio Denard Few, 34; Christopher Landelle Burns, 31; James Darron Miller, Jr., 32; and Steven Jadon Williams, 39—were charged by a grand jury in an indictment handed down on January 7, 2020.
Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the FBI Little Rock Field Office, announced the indictment, which details a scheme in which the defendants targeted ATMs located in Walmart Neighborhood Market Stores in Conway and Benton, as well as locations in Oklahoma including Edmond, Oklahoma City, and Broken Arrow.
The indictment alleges that from December 2018 through January 2019, the defendants rented vehicles to drive from Dallas to Oklahoma and Arkansas in order to break into Walmart Neighborhood Market stores to steal or break into ATMs. The defendants allegedly utilized tools and bought gloves and clothing to conceal their identity while they conducted the break-ins, and they communicated by cell phone to orchestrate the robberies.
The indictment charges all four defendants with two counts of transporting $5,000 or more of stolen money—one count relating to the Walmart Neighborhood Market in Conway, and one count relating to the robbery of an ATM at a Shell Superstop in Benton. All four are also charged with one count of conspiracy to transport $5,000 or more of stolen money.
During today’s arrests, authorities seized 15 firearms, including eight handguns and seven rifles; approximately $15,000 cash and a currency counter; and multiple crowbars, bolt cutters, and heavy gauge cables with hooks.
The joint investigation was conducted by the FBI Little Rock Field Office, FBI Dallas Field Office, and FBI Oklahoma City Field Office, with assistance from Benton Police Department and Conway Police Department. This case is being prosecuted by Assistant United States Attorney Bart Dickinson.
The penalty for transporting stolen money is not more than ten years’ imprisonment, and the penalty for conspiracy to transport stolen money is not more than five years’ imprisonment. Both charges carry potential penalties of not more than three years of supervised release and not more than a $250,000 fine.
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
Jonesboro Drug Conspiracy Results in Seizure of $35,000 Worth of Methamphetamine, Multiple GunsRead the Press Release
LITTLE ROCK— Seven defendants are in custody after federal and state authorities made multiple arrests in Jonesboro this morning as part of an ongoing investigation. The portion of the investigation that concluded with today’s arrests resulted in the seizure of more than five pounds of methamphetamine and six firearms. The overall investigation, which is continuing, involves the seizure of more than 12 pounds of methamphetamine and 31 guns, to date. Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the FBI Little Rock Field Office, announced today’s arrests.
The large-scale drug operation in Northeast Arkansas is, according to one of five related federal indictments, headed by Eiichi Moore, a known member of the Crip gang. Today’s arrests are in conjunction with the announcement of these indictments of eight individuals who were charged by a federal grand jury on January 7, 2020. Moore, 41, and two others—Lakendra Thomas, 27, and Jullian Woods, 33, all of Jonesboro—are charged with conspiracy to distribute methamphetamine as well as distribution of methamphetamine. An additional co-conspirator has been indicted but has not been arrested and is currently a fugitive.
During this morning’s arrests, police announced their presence at Moore’s residence and immediately heard shots fired from inside the home. Officers confirmed that Moore fired the shots while he and Thomas were in the master bedroom. Moore fired towards the living room, where minor children were sleeping. No one was injured in the shooting.
Other defendants whose charges were announced today, all of whom reside in Jonesboro, include Alva Turner, 42, who is charged with possession of methamphetamine with intent to distribute; Lawrence Cannon, 49, who is charged with being a felon in possession of a firearm; Mike Crockett, 31, who is charged with distribution of methamphetamine; and Percy Law, Jr., 39, who is charged with possession of cocaine and crack cocaine with intent to deliver, possession of a firearm in furtherance of a drug trafficking crime, and three counts of distribution of methamphetamine. Cannon is currently in state custody on unrelated charges. The other six defendants are being held in federal custody and will be seen Thursday by United States Magistrate Judge Jerome T. Kearney.
The indictments stem from an Organized Crime Drug Enforcement Task Force, or OCDETF, investigation that began in March 2016. While the overall investigation has thus far uncovered more than 12 pounds of methamphetamine, the defendants charged in the indictments announced today are allegedly responsible for five pounds of methamphetamine that law enforcement intercepted. Five pounds of methamphetamine has a street value ranging from $35,000 to $50,000. From these defendants officers also seized six firearms, one of which was a semi-automatic firearm with an extended capacity magazine to hold extra ammunition, as well as cocaine and various drug paraphernalia. Four of the firearms, including an AR-15; numerous additional magazines, some with extended capacity; and over $35,000 in cash, were seized as part of today’s arrests.
“Today’s arrests signify our commitment to stopping drug trafficking throughout Eastern Arkansas,” stated United States Attorney Hiland. “This operation shows that our reach extends to those who traffic narcotics in Jonesboro and anywhere else in the Eastern District of Arkansas. We appreciate the collaboration between the federal and state partners that made this investigation possible.”
“Today’s arrests disrupted a major drug trafficking network in Northeast Arkansas and were the culmination of an extensive OCDETF investigation involving our numerous federal, state, and local partners,” said Special Agent in Charge Upchurch. “Our goal with this OCDETF investigation was to reduce the flow of illegal drugs by identifying and targeting major traffickers within our state. Today’s operation shows what can be accomplished by Arkansas law enforcement when we work together to counter the scourge of drugs and end the violence drug traffickers instill in our communities.”
Today’s operation is the result of a joint investigation between the FBI; the Bureau of Alcohol, Tobacco, Firearms, & Explosives; the Arkansas State Police; the Jonesboro Police Department; the Craighead County Sheriff’s Office; and the 2nd Judicial Drug Task Force. The case is being prosecuted by Assistant United States Attorney Erin O’Leary.
An indictment contains only allegations. Defendants are 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
Doctor and Sales Rep Charged in $12 Million Fraud Scheme Targeting Tricare and Extensive Cover UpRead the Press Release
LITTLE ROCK—A doctor and a medical sales representative have been charged in a scheme to pay and receive kickbacks to generate expensive prescriptions for compounded drugs. TRICARE, the military’s health insurer, paid over $12 million for the prescriptions, which the indictment alleges were rubber stamped without examining patients or regard to medical necessity. The 43-count indictment alleges the scheme also encompassed widespread efforts to obstruct the ensuing investigation.
Cody Hiland, U.S. Attorney for the Eastern District of Arkansas, Diane Upchurch, Special Agent in Charge of the FBI Little Rock Field Office, and Latisha Cleveland, Acting Special Agent in Charge of the Dallas Regional Office of the U.S. Department of Health and Human Services, Office of the Inspector General, announced the indictment, which was handed down yesterday by a federal grand jury and included charges for conspiracy, wire fraud, mail fraud, Anti-Kickback violations, aggravated identity theft, money laundering, lying to the FBI, falsifying records, and obstruction of justice.
The indictment alleges that recruiters sought TRICARE beneficiaries to receive the drugs, promising to secure their prescriptions (without any doctor consult) and, at times, offering them money to sign up. Upon receipt of TRICARE beneficiary information from recruiters, the ringleader of the scheme sent pre-filled prescriptions—with drugs to be dispensed, refills authorized, and patient names already listed—to medical professionals who signed without consulting patients or any regard to medical necessity. Prescriptions went to a Mississippi pharmacy, which shipped drugs nationwide and billed TRICARE for reimbursement.
According to the indictment, local doctor Joe David May, also known as Jay May, of Alexander, rubber stamped pre-filled prescriptions for over 100 beneficiaries for which TRICARE paid $4.5 million. May received pre-filled prescriptions from Derek Clifton, also of Alexander. The indictment alleges the ringleader paid Clifton to get May to sign the prescriptions despite knowing Clifton shared his payout with May. Clifton also had May sign pre-filled prescriptions for beneficiaries solicited by Clifton himself and his own recruiters. Clifton received over $740,000 tied to May’s prescriptions, which he used to buy a car, fund his retirement account, and purchase a home.
The indictment alleges Clifton, who previously coached high school basketball, began by recruiting three former players who joined the military. Each agreed to receive drugs after being offered money, and one later received $1,200 cash hidden inside a Stetson cowboy hat. Together they received nearly $500,000 in drugs prescribed by May.
According to the indictment, May used a cell phone app to electronically sign batch after batch of pre-filled prescriptions, including signing 8 pre-filled prescriptions within just 3 minutes of receipt, 10 within 5 minutes, and 13 within 13 minutes. In the final days before TRICARE reimbursements were expected to plummet, May rubber stamped more than 50 pre-filled prescriptions for which TRICARE paid $1.2 million. Many of those beneficiaries were recruited during a meeting at a North Little Rock National Guard facility where attendees were each offered $1,000 for receiving drugs.
The indictment alleges the only TRICARE beneficiary May actually treated before prescribing drugs was a 91-year-old widow suffering from dementia whom May noted neither “report[ed] any pain” nor appeared to be in pain. Nevertheless, he prescribed her $40,000 in pain cream off the books, failing to log the drugs in her official hospital chart.
According to the indictment May received cash kickbacks for signing, which participants openly discussed. When the ringleader joked about being hounded for payouts by texting Clifton “Hashtag for the day... [Ringleader], is my check ready? # Lol” Clifton replied “Haha! Meeeee toooo Jay already called asking this morning too...even the rich man[.]” Later, Clifton lamented falling TRICARE reimbursement rates by texting the ringleader “$210 minus half for tax$105 [sic] then dr’s cut then patients cut..... Yikes[.]” According to the indictment May deposited over $15,000 in cash in 2015 (compared to under $500 in 2014), including $10,000 during the same three-month period at the height of the scheme during which time Clifton withdrew over $15,000 in cash.
According the indictment, following a CBS News exposé and complaints of doctors signing prescriptions “on the down low” without seeing patients, recruiters were instructed to relay prescriber names to beneficiaries so beneficiaries could behave as if they “knew and saw there [sic] doctor” if they came into contact with the pharmacy.
The indictment alleges the ruse continued once federal agents began to investigate, with May and another prescriber both falsely claiming to have consulted patients before signing prescriptions and both producing phony medical records to make it appear patients had been consulted. Records produced by May related to beneficiaries never examined and cited made-up injuries and surgeries patients never experienced. Similarly, Clifton altered records produced to the Grand Jury to conceal the names of TRICARE beneficiaries who received drugs and withheld hundreds of prescriptions, emails, and other records from the Grand Jury that the FBI would later discover when searching his email account.
“Our healthcare system relies upon the integrity of those who practice in the field. It is our mission to root out those who would prey upon such vulnerability and prosecute them to the fullest extent of the law,” said U.S. Attorney Cody Hiland. “The assembly line alleged in this case of fraudulent prescriptions fueled by kickbacks was especially concerning because it attacked TRICARE, our military’s health insurer. Equally troubling are the allegations of a widespread campaign to throw investigators off the trail by lying to the authorities, falsifying medical records, tampering with evidence, and attempting to hide material from the Grand Jury. While such tactics may prolong an investigation, today’s indictment shows that they ultimately succeed only in bringing ever more serious charges upon the accused.”
“Unscrupulous medical professionals and fraudsters allegedly stole millions of dollars from the TRICARE program which serves our veterans, military members and their families,” said FBI Special Agent in Charge Diane Upchurch. “In an effort to further pervert the course of justice, the defendants allegedly lied, obstructed justice, and falsified records in order to conceal their crimes. The deliberate targeting of a healthcare program which solely aids our military troops and their families is appalling, and the additional alleged attempts to cover up their criminal actions show the true nature of those indicted today. Alongside our partners at HHS-OIG, we will continue to aggressively investigate fraud within the healthcare industry and we urge anyone with information about suspected healthcare fraud to contact their local FBI Field Office.”
“Fraudulently submitting claims to any federally funded health care benefit program equates to robbing all American taxpayers” said HHS-OIG Acting Special Agent in Charge Latisha Cleveland. “Working closely with our law enforcement partners, our agents are determined to protect our nation’s health care systems. We are committed to ensuring that fraudsters pay for their crimes, especially those that target our military service members and veterans.”
A vigilant public is indispensable to rooting out fraud, waste, and abuse within the healthcare industry. Please email [email protected] if you or someone you know may have information about the compounded drug scheme targeting TRICARE. Please call 1-800-HHS-TIPS (1-800-447-8477) or the FBI with any other tips on suspected fraud, waste, or abuse within the healthcare industry.
This case is being investigated by the FBI and HHS-OIG, and prosecuted by Assistant United States Attorneys Alexander D. Morgan and Stephanie G. Mazzanti.
An indictment contains only 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
http://www.justice.gov/edar
Twitter: @EDARNEWS
CHARGES AND STATUTORY SENTENCES
Conspiracy is punishable by up to five years’ imprisonment. Wire fraud and mail fraud are punishable by up to twenty years’ imprisonment. Violating the Anti-Kickback statute is punishable by up to ten years’ imprisonment. Aggravated identity theft carries a mandatory two-year prison term, consecutive to any other sentence imposed. Money laundering is punishable by up to ten years’ imprisonment. Lying to the FBI is punishable by up to five years’ imprisonment. Falsification or alteration of records in a federal investigation is punishable by up to twenty years’ imprisonment. Obstruction of justice in violation of 18 U.S.C. § 1503(a) is punishable by up to ten years’ imprisonment. Obstruction of justice in violation of 18 U.S.C. § 1512 (c)(2) is punishable by up to twenty years’ imprisonment.
Each of the proceeding offenses carries a potential fine of up to $250,000 and up to three years’ supervised release.
Clifton, May IndictmentConvicted Felon Who Possessed Firearm Sentenced to 180 Months in Federal PrisonRead the Press Release
LITTLE ROCK— Raymond Trice, a multi-convicted felon, will spend the next 180 months in federal prison for illegally possessing a firearm. Cody Hiland, United States Attorney for the Eastern District of Arkansas, announced the sentence, which was handed down today by Chief United States District Judge D.P. Marshall, Jr.
Trice, 43, of Jonesboro, pleaded guilty to one count of being a felon in possession of a firearm on August 6, 2019. At that hearing, Trice admitted that on December 18, 2017, a Jonesboro police officer saw Trice peering into the windows of parked cars in the early morning hours. Trice fled when police tried to question him. Later, police found a loaded .38 caliber revolver along the route where Trice fled.
Trice admitted that he had previous convictions for multiple offenses, including battery, aggravated assault, robbery, burglary, and possession of cocaine. Judge Marshall also sentenced Trice to four years of supervised release to follow his 15-year prison sentence.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support of the Jonesboro Police Department. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
# # #
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
Convicted Murderer Sentenced to 10 Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
LITTLE ROCK— A convicted murderer has been sentenced to 10 years in federal prison for being a felon in possession of a firearm. Today, United States Chief District Judge D.P. Marshall, Jr., sentenced Patrick Johnson, 22, of Little Rock, to 120 months’ imprisonment. Ten years is the statutory maximum penalty for being a felon in possession of a firearm.
Cody Hiland, the United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the FBI Little Rock Field Office, announced today’s sentence. The Court ordered that the sentence run consecutive to Johnson’s anticipated revocations in multiple pending state court cases and his pending Pulaski County Circuit Court cases for murder in the second degree and unlawful discharge of a firearm.
Johnson, a gang member, previously pleaded guilty before Judge Marshall to possession of a stolen rifle. The federal conviction stems from a March 19, 2018, arrest, when Little Rock Police Department Violent Crime Apprehension Team conducted a traffic stop. Johnson, who was a suspect in multiple violent crimes, was in the vehicle. The rifle was in plain view in a backpack Johnson was seen carrying prior to getting into the vehicle. Officers also located suspected crack cocaine in the vehicle.
On March 12, 2018, Johnson was involved in a shooting near Wright Avenue and Battery Street, where he and others fired shots at two individuals. He pleaded guilty to two counts of unlawful discharge of a firearm. Only hours later, on March 13, 2018, Johnson was involved in a shooting near 26th Street and Cross Street, where the defendant and others were responsible for firing shots at an occupied vehicle. Two individuals were shot, one of whom died, and Johnson pleaded guilty to murder in the second degree. Analysis by the Arkansas State Crime Lab linked the rifle found during the March 19 traffic stop to the March 13 murder.
“Removing violent criminals from our communities is a top priority for our office, and today’s ten year sentence sends a message that we will not tolerate gun violence,” said U.S. Attorney Hiland. “Prosecuting violent criminals is critical to keeping our communities safe. We remain committed to working with our state and local partners to fulfill our promise that gun crime by violent criminals will lead to federal time—time with no opportunity for parole.”
The United States requested that the sentence run consecutively because the firearm was connected to multiple shooting incidents, including a murder. The United States also based the request on Johnson’s criminal history, which includes the convictions for murder in the second degree, unlawful discharge of a firearm, commercial burglary, theft, and continued criminal conduct while incarcerated.
The investigation was conducted by the FBI GETROCK Task Force and the Little Rock Police Department.
# # #
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
Do not reply to this message. If you have questions, please use the contacts in the message or call the U.S. Attorney’s Office at 501-340-2600.
Seven Defendants Charged in $11.5 Million Fraud Case: Lawyer and Tax Preparer Helped Five Defendants with False Discrimination ClaimsRead the Press Release
LITTLE ROCK—Five individuals and an attorney have been charged with defrauding the U.S. Department of Agriculture out of over $11.5 million that was intended to benefit farmers who had been discriminated against. The indictment alleges that four sisters, one of their daughters, and a lawyer worked together to submit false claims concerning discrimination against farmers who are black, Hispanic, or female. The women also hired a tax preparer to falsify tax returns, resulting in failure to report over $4.6 million to the Internal Revenue Service.
Cody Hiland, U.S. Attorney for the Eastern District of Arkansas, Dax Roberson, Special Agent in Charge of the U.S. Department of Agriculture Office of Inspector General, and Tamera Cantu, Special Agent in Charge of the Internal Revenue Service, announced the indictment, which was handed down by a federal grand jury on Thursday afternoon and made public today.
The indictment alleges that from 2008 until 2017, five defendants solicited people to file false claims asserting they were discriminated against when they tried to get assistance from USDA for their farming operations. Four of the defendants—Lynda Charles, Rosie Bryant, Delois Bryant, and Brenda Sherpell—are sisters. 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. A seventh defendant, Jerry Green, worked as a tax preparer, and the indictment alleges that he filed false tax returns for some of the claimants.
According to the indictment, claims were submitted under two programs: the Black Farmers Discrimination Litigation (BFDL) Settlement and the Hispanic and Women Farmers and Ranchers (HWFR) Litigation. 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 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. The indictment alleges that 192 claims were made, almost all of which were successful, resulting in a loss of over $11.5 million. The indictment alleges that the 192 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 indictment alleges that the four sisters arranged for defendant Jerry Green to provide tax preparation services for the claimants they had recruited. The indictment further alleges that Green falsified the tax returns in order to create a tax refund. The conspiracy resulted in false tax items totaling $4,615,009.
According to the indictment, three of the sisters—Lynda Charles, Rosie Bryant, and Delois Bryant—filed false tax returns of their own and laundered money through purchases of numerous homes and properties, a Chevrolet van, and a Mercedes G550. The indictment also alleges that they laundered money through cashier’s checks and payments on a student loan for Charles’ daughter.
In October, the United States government filed a civil case to forfeit several properties that were purchased using money traceable to the crimes charged in this indictment.
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 Angela Jegley, Michael Johnson, Cameron McCree, and Bart Dickinson.
An indictment contains only 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 on-line at
http://www.justice.gov/edar
Twitter:
@EDARNEWS
CHARGES AND STATUTORY SENTENCES
Mail fraud is punishable by not more than 20 years incarceration in the Bureau of Prisons with a possible fine of up to $250,000, and not more than 3 years supervised release.
Conspiracy to defraud the IRS is punishable by not more than 5 years in the Bureau of Prisons with a possible fine of up to $250,000, and not more than 3 years supervised release.
False tax returns are punishable by not more than 3 years incarceration in the Bureau of Prisons with a possible fine of up to $100,000, and not more than 1 year supervised release.
Tax evasion is punishable by not more than 5 years incarceration in the Bureau of Prisons with a possible fine of up to $100,000, and not more than 3 years supervised release.
Money laundering is punishable by not more than 10 years incarceration in the Bureau of Prisons with a possible fine of up to $250,000, and not more than 3 years supervised release.
Jacksonville Man Sentenced to 30 Years in Prison for Production of Child PornographyRead the Press Release
LITTLE ROCK—A Jacksonville man was sentenced today on one count of production of child pornography. United States District Court Judge James M. Moody sentenced Robert Franke III, 41, to 30 years in federal prison. Cody Hiland, the United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the FBI Little Rock Field Office, announced today’s sentencing.
In August of 2017, the Jacksonville Police Department received information that Franke was sexually assaulting a 15-year-old female. The minor disclosed to the police that Franke had been touching her inappropriately and asking her to send him nude photographs of herself for approximately four years. Franke also sent pictures of his genitals to the minor and encouraged the minor to send sexually explicit photographs of her friends.
In an interview, Franke admitted to asking the minor female to send him nude photographs in exchange for different privileges. He also admitted to inappropriately touching the minor on several occasions. A forensic review of the minor female’s telephone revealed numerous sexually explicit conversations and nude images of the minor. The defendant also encouraged the minor to drink alcohol in an effort to “relax her.”
On October 3, 2017, Franke was charged in a five-count indictment with two counts of production of child pornography, one count of attempted production of child pornography, one count of enticement of a minor, and one count of transferring obscene material to a minor. The defendant pleaded guilty to one count of production of child pornography on May 8, 2019.
At the sentencing hearing, Moody sentenced the defendant to the statutory maximum penalty of 30 years’ imprisonment, noting that the defendant’s behavior was outside the bounds of a typical child pornography case.
“This defendant took advantage of a young child for years, manipulating her into sending sexually explicit photos of herself,” said U.S. Attorney Hiland. “He received the longest sentence allowed by law, 30 years in prison, because of his abhorrent abuse of this child. This case demonstrates our office’s dedication to investigating and prosecuting those who prey on our children.”
In addition to the prison term, Franke was sentenced to ten years of supervised release following his imprisonment. The investigation was conducted by the Arkansas State Police, the Jacksonville Police Department, and the FBI, and the case was prosecuted by Assistant United States Attorneys Kristin Bryant and Allison W. Bragg.
# # #
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 33 Months in Prison After Lying on Loan Applications, Costing Lenders $3.3 MillionRead the Press Release
LITTLE ROCK— A Little Rock man was sentenced to prison today after making false statements on loan applications, costing banks and lenders over $3.3 million. Marcus Shane Sweetin, 46, was sentenced to 33 months in prison. Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation, announced today’s sentence.
Sweetin operated Sweetin Farms LLC, which farmed two parcels of land in Arkansas County and Prairie County. In April 2013, Sweetin applied for a loan from AgHeritage Farm Credit Services that sought to recoup money his company allegedly spent acquiring a Case 290 Magnum Tractor. The tractor itself was to serve as collateral, and in support of the loan, Sweetin gave AgHeritage an invoice from an equipment dealer reflecting the tractor had been purchased outright and a copy of the company check that had supposedly been used to pay.
The tractor had not been purchased outright but had actually been financed through another lender. The real tractor bore a different serial number, and the check and invoice Sweetin provided in support of the loan were both fabricated. During his plea hearing, Sweetin acknowledged this was only one of several instances where he lied to lenders in order to secure loans for his farming operation. At various points, he sought purchase money for farming equipment financed elsewhere using fictitious serial numbers and invoices, he overstated farmable acreage and understated debt to secure crop loans, and he double pledged collateral. All told, these false statements secured loans that occasioned over $3.3 million in losses to AgHeritage, BancorpSouth, and Regions Bank.
Sweetin pleaded guilty in May to an Information charging him with one count of making a false statement on a loan application. He was sentenced by United States District Judge James M. Moody. In addition to prison, Sweetin was sentenced to five years of supervised release and ordered to pay over $3.2 million in restitution, the number having been lowered from $3.3 million to account for recent payments to victims since his guilty plea. The case was investigated by the FBI and 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
Bryant Man Sentenced to 25 Years in Prison for Child PornographyRead the Press Release
LITTLE ROCK—A Bryant man was sentenced today on charges of receiving and attempting to distribute images of child pornography as well as advertising and possessing those images. United States District Court Judge James M. Moody sentenced Joseph Keck, Jr., 62, to 25 years in federal prison. Cody Hiland, the United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the FBI Little Rock Field Office, announced today’s sentencing.
Keck was convicted following a jury trial in April of this year. In 2016, the FBI learned that someone was sharing child pornography over the internet from a residence in Bryant, Arkansas. Investigation revealed that Keck stayed at this residence when not working as a truck driver. On May 9, 2016, the defendant arrived at the residence in a white Astro van, and the FBI obtained his two laptop computers, his external hard drive, and his cell phone. Forensic examination revealed tens of thousands of pictures and videos of child pornography. Those devices also contained evidence that Keck had downloaded child pornography and saved it to his computer.
Trial testimony also indicated that Keck used a file sharing program called Gigatribe to exchange images and videos with other users. Through his twelve Gigatribe accounts, the defendant downloaded and shared tens of thousands of videos and images of child pornography. He also advertised the contents of his child pornography collection by offering his password to other Gigatribe users. Evidence at trial included Keck’s Gigatribe chat logs, in which he told other users his name was Joe, he was a truck driver, and he liked young boys ages 12-16.
“This defendant collected thousands upon thousands of videos and images of children being sexually abused,” said U.S. Attorney Hiland. “Today’s lengthy sentence means this defendant is no longer creating a market for such deplorable images that victimize the most vulnerable among us. Our office will continue to aggressively investigate and prosecute those who seek to victimize children.”
“I sincerely appreciate the time and effort our agents and Assistant United States Attorneys dedicate to investigating and prosecuting child pornography cases and protecting the children of our country,” said Special Agent in Charge Upchurch. “Keck’s sentencing demonstrates our dedication to investigating and prosecuting those who prey on our most vulnerable population.”
In addition to the prison term, Keck was sentenced to five years of supervised release following his imprisonment. The investigation was conducted by the FBI, and the case was prosecuted by Assistant United States Attorneys Kristin Bryant and Michael Gordon.
# # #
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
Attorney General Announces Launch of Project Guardian - A Nationwide Strategic Plan to Reduce Gun ViolenceRead the Press Release
Today, Attorney General William P. Barr announced the launch of Project Guardian, a new initiative designed to reduce gun violence and enforce federal firearms laws across the country. Specifically, Project Guardian focuses on investigating, prosecuting, and preventing gun crimes.
Reducing gun violence and enforcing federal firearms laws have always been among the Department’s highest priorities. In order to develop a new and robust effort to promote and ensure public safety, the Department reviewed and adapted some of the successes of past strategies to curb gun violence. Project Guardian draws on the Department’s earlier achievements, such as the “Triggerlock” program, and it serves as a complementary effort to the success of Project Safe Neighborhoods (PSN). In addition, the initiative emphasizes the importance of using all modern technologies available to law enforcement to promote gun crime intelligence.
“Gun crime remains a pervasive problem in too many communities across America. Today, the Department of Justice is redoubling its commitment to tackling this issue through the launch of Project Guardian,” said Attorney General William P. Barr. “Building on the success of past programs like Triggerlock, Project Guardian will strengthen our efforts to reduce gun violence by allowing the federal government and our state and local partners to better target offenders who use guns in crimes and those who try to buy guns illegally.”
“We have successfully prioritized gun crimes in the Eastern District of Arkansas, and our efforts are paying off,” stated United States Attorney Cody Hiland. “Since our renewed focus on firearm cases, Pulaski County has seen a 24% reduction in homicides and a 55% reduction in non-fatal shootings. Our prosecutors have the fifth-highest caseload in the nation, and we are proud of the work we are doing to keep our communities safer.”
“ATF has a long history of strong partnerships in the law enforcement community,” said Acting Director Regina Lombardo. “Make no mistake, the women and men of ATF remain steadfast to our core mission of getting crime guns off of our streets. ATF and U.S. Attorneys nationwide will leverage these partnerships even further through enhanced community outreach initiatives and coordination with local, state, and tribal law enforcement and prosecutors to cut the pipeline of crime guns from those violent individuals who seek to terrorize our communities. Project Guardian will enhance ATF’s Crime Gun Intelligence, to include identifying, investigating and prosecuting those involved in the straw purchases of firearms, lying on federal firearms transaction forms, and those subject to the mental health prohibition of possessing firearms.”
Project Guardian’s implementation is based on five principles:
1) Coordinated Prosecution. Federal prosecutors and law enforcement will coordinate with state, local, and tribal law enforcement and prosecutors to consider potential federal prosecution for new cases involving a defendant who: a) was arrested in possession of a firearm; b) is believed to have used a firearm in committing a crime of violence or drug trafficking crime prosecutable in federal court; or c) is suspected of actively committing violent crime(s) in the community on behalf of a criminal organization.
2) Enforcing the Background Check System. United States Attorneys, in consultation with the Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in their district, will create new, or review existing, guidelines for intake and prosecution of federal cases involving false statements (including lie-and-try, lie-and-buy, and straw purchasers) made during the acquisition or attempted acquisition of firearms from Federal Firearms Licensees.
Particular emphasis is placed on individuals convicted of violent felonies or misdemeanor crimes of domestic violence, individuals subject to protective orders, and individuals who are fugitives where the underlying offense is a felony or misdemeanor crime of domestic violence; individuals suspected of involvement in criminal organizations or of providing firearms to criminal organizations; and individuals involved in repeat denials.
3) Improved Information Sharing. On a regular basis, and as often as practicable given current technical limitations, ATF will provide to state law enforcement fusion centers a report listing individuals for whom the National Instant Criminal Background Check System (NICS) has issued denials, including the basis for the denial, so that state and local law enforcement can take appropriate steps under their laws.
4) Coordinated Response to Mental Health Denials. Each United States Attorney will ensure that whenever there is federal case information regarding individuals who are prohibited from possessing a firearm under the mental health prohibition, such information continues to be entered timely and accurately into the United States Attorneys’ Offices’ case-management system for prompt submission to NICS. ATF should engage in additional outreach to state and local law enforcement on how to use this denial information to better assure public safety.
Additionally, United States Attorneys will consult with relevant district stakeholders to assess feasibility of adopting disruption of early engagement programs to address mental-health-prohibited individuals who attempt to acquire a firearm. United States Attorneys should consider, when appropriate, recommending court-ordered mental health treatment for any sentences issued to individuals prohibited based on mental health.
5) Crime Gun Intelligence Coordination. Federal, state, local, and tribal prosecutors and law enforcement will work together to ensure effective use of the ATF’s Crime Gun Intelligence Centers (CGICs), and all related resources, to maximize the use of modern intelligence tools and technology. These tools can greatly enhance the speed and effectiveness in identifying trigger-pullers and finding their guns, but the success depends in large part on state, local, and tribal law enforcement partners sharing ballistic evidence and firearm recovery data with the ATF.
Federal law enforcement represents only about 15% of all law enforcement resources nationwide. Therefore, partnerships with state, local, and tribal law enforcement and the communities they serve are critical to addressing gun crime. The Department recognizes that sharing information with our state, local, and tribal law enforcement partners at every level will enhance public safety, and provide a greater depth of resources available to address gun crime on a national level.
For more information on Project Guardian, see the Attorney General’s memorandum at: https://www.justice.gov/ag/project-guardian-memo-2019/download.
# # #
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
Greene County Sheriff's Lieutenant Indicted for Stealing FBI MoneyRead the Press Release
LITTLE ROCK— A Greene County Sheriff’s Lieutenant has been charged with stealing government funds related to a ruse money seizure in Paragould.
Cody Hiland, U.S. Attorney for the Eastern District of Arkansas, announced today the return of an indictment charging Allen Scott Pillow, 55, of Paragould, with theft of government property, specifically $30,400 of FBI funds. A federal grand jury returned the indictment Wednesday night.
Pillow was arrested on a federal complaint on Tuesday, and was initially arraigned and then released by United States Magistrate Judge Patricia S. Harris on Wednesday. The case has been assigned to United States District Judge Billy Roy Wilson, who has set arraignment on the indictment for November 14, 2019 at 2 p.m.
According to the complaint, on Monday the FBI conducted a ruse narcotics investigation which led to the seizure of FBI funds by Pillow, who is in a leadership position within the narcotics unit of the Greene County Sheriff’s Office. As part of the ruse, agents left a backpack containing $76,000 in FBI funds in a vehicle left in a Lowe’s parking lot. Believing that he was assisting out-of-state police officers, Pillow arrived in the parking lot and seized the backpack. Pillow told the out-of-state officers that he located $45,600 in the backpack, and later Pillow checked $45,600 into evidence. According to the complaint, on Tuesday, while executing a search warrant, officers located money from the missing $30,400 in Pillow’s pants’ pocket, at which time Pillow was arrested.
The statutory penalty for theft of government property is not more than 10 years’ imprisonment, not more than a $250,000 fine, and not more than three years of supervised release.
The investigation was conducted by the FBI and the Arkansas State Police, and the case is being prosecuted by Assistant United States Attorney Erin O’Leary.
A complaint and indictment only contain 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
http://www.justice.gov/edar
Twitter:
@EDARNEWS
Jury Finds Roland Man Guilty of Attempted Enticement of a Minor to Engage in SexRead the Press Release
LITTLE ROCK— A Roland man has been convicted of enticing a minor to engage in sexual activity after exchanging messages with an undercover investigator.
Cody Hiland, U.S. Attorney for the Eastern District of Arkansas, announced today that a federal jury has convicted Patrick Karl Tate, 57, of Roland. United States District Judge James M. Moody, Jr., presided over the two-day trial, which concluded Tuesday with the jury verdict finding Tate guilty on the single count. Tate will be sentenced by Judge Moody at a later date.
Testimony during the trial established that in April of 2017, an undercover investigator with the Faulkner County Sheriff’s Office saw an ad posted on Craigslist. The ad was located in a section of the website titled Casual Encounters, which an investigator testified is known for sex solicitations. The ad specified it was looking for “mother/daughter,” and it asked for responses to be sent through KIK messenger, an online messaging service. The ad provided a KIK username: karlpatrick69. This was later identified to be the defendant, Patrick Karl Tate.
The undercover investigator sent a message to the KIK account, and the undercover exchanged messages with karlpatrick69 from April 9 to April 16, 2017. The messages, all of which were introduced at trial, indicated that the undercover officer was posing as an adult male with access to his girlfriend’s daughter, a 13-year-old child. In the messages, and in two recorded phone conversations that were played at trial, the undercover and Tate made plans to meet so that Tate could have sex with the 13-year-old child. In the messages, the undercover told Tate that he should bring at least three condoms. The two agreed to meet at a location in Greenbrier on April 16, 2017, which was Easter Sunday.
Evidence at trial further indicated that on April 16, 2017, Tate arrived at the agreed-upon location. He had three condoms. He was met by investigators from the Faulkner County Sheriff’s Office, who arrested him. Tate was transported back to the major crimes unit, where he was read his rights and gave a statement. In his statement, Tate admitted to posting the Craigslist ad, admitted to having the conversations on KIK, admitted that karlpatrick69 was his screenname, and admitted that he knew the child involved was 13 years old.
“This 57-year-old defendant planned to have sex with a 13-year-old child,” stated U.S. Attorney Hiland. “Fortunately, instead of an actual child, he was met by the full weight and force of law enforcement. This investigation shows that we will not tolerate those who would prey upon the most vulnerable among us—our children.”
The statutory penalty for enticement of a minor to engage in sexual activity is not less than 10 years and not more than life imprisonment, not more than a $250,000 fine, and not less than five years of supervised release.
The investigation was conducted by the Faulkner County Sheriff’s Office, and the case was prosecuted by Assistant United States Attorneys Jordan Crews and Allison W. Bragg.
# # #
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
Camden Men Indicted for Pine Bluff Robbery and MurderRead the Press Release
LITTLE ROCK— Two Camden men have been charged with robbing a gas station and attempting to rob a pawn shop and killing the shop’s owner. A federal grand jury has charged Daryl Strickland, Jr., 22, and Rodney Tyrone Henry, 22, following the November 2018 robbery of the Alon Gas Station and the attempted robbery of the Wise Buck Pawn Shop, both in Pine Bluff. The indictment alleges that Strickland and Henry caused the death of Brandon McHan, who owned the pawn shop.
According to the indictment, which was returned by a federal grand jury Thursday, Strickland and Henry conspired on November 12, 2018, to rob the Wise Buck Pawn Shop, which was a federally licensed firearms dealer. The indictment charges them with the attempted robbery of the pawn shop and with causing the death of McHan, a pawn shop employee, while carrying a firearm during the attempted robbery. The indictment also charges them with conspiring to rob the Alon Gas Station, robbing the gas station, and using a firearm during the robbery.
The penalty for conspiring to, attempting to, or interfering with commerce by robbery is not more than 20 years imprisonment, followed by a term of supervised release of not more than three years. The penalty for brandishing a firearm in furtherance of a crime of violence is not less than seven years and not more than life imprisonment, and that term runs consecutively to any other term imposed. The penalty for murder while discharging a firearm in furtherance of a crime of violence is any term of years, up to life imprisonment, or death. Each crime charged carries a fine of up to $250,000.
Cody Hiland, United States Attorney for the Eastern District of Arkansas, and William McCrary, Assistant Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives– New Orleans Field Division, announced the indictment. The investigation was conducted by the ATF, the Pine Bluff Police Department, the Camden Police Department, and Arkansas Community Corrections. The case is being prosecuted by Assistant United States Attorneys Benecia Moore and Kristin Bryant.
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
Jury Finds Little Rock Man Guilty of Possessing MachinegunRead the Press Release
LITTLE ROCK— A federal jury has convicted a Little Rock man of five offenses related to firearms, heroin, and methamphetamine, including possession of a machinegun. Brian Barron, 38, was convicted after his trial ended late Tuesday afternoon.
United States District Judge James M. Moody, Jr., presided over the two-day trial, which concluded with the jury verdict finding Barron guilty on all counts. Judge Moody will sentence Barron at a later date.
Testimony during the trial established that in October 2017, police responded to a shooting incident in Little Rock where a woman reported the father of her children, Brian Barron, had shot at her and hit her in the head with a machinegun. The resulting investigation revealed that Barron, who was a felon, was dealing in heroin and methamphetamine. Barron had two drug-related convictions in Pulaski County and a federal conviction for possession with intent to distribute phencyclidine (often called PCP) involving a firearm.
Investigators obtained a search warrant for a storage locker Barron had rented on Geyer Springs Road, and while officers were conducting surveillance on the storage locker, Barron arrived in a gold GMC Yukon with a small child. Officers encountered Barron near the storage locker and ultimately had to handcuff him due to his aggressive behavior. Officers conducted a canine sniff of the Yukon, which alerted to the presence of narcotics.
In the Yukon, investigators found two firearms: a stolen Bushmaster rifle, wrapped in a garbage bag with a loaded 100 round drum of ammunition, and a Mac 10 machine pistol with multiple loaded extended magazines. They also found cocaine, over 40 grams of methamphetamine actual, 26 capsules of heroin, and various pills.
"Incredibly, this repeat offender discharged his machinegun at the mother of his children," stated United States Attorney Cody Hiland. "The hard work by law enforcement and our AUSAs in obtaining this conviction is an important step in keeping our communities safer by removing dangerous, repeat offenders from our communities."
A grand jury charged Barron on July 10, 2019, in a Superseding Indictment that contained five counts: being a felon in possession of a firearm, possession of heroin with intent to distribute, possession of 5 grams or more of methamphetamine actual with intent to distribute, possession of a firearm in furtherance of a drug trafficking crime, and possession of a machinegun.
Due to Barron’s criminal history, the statutory penalty for being a felon in possession of a firearm is not less than 15 years imprisonment and not more than life. When the crime involves a machinegun, the statutory penalty for possession of a firearm in furtherance of a drug trafficking crime is not less than 30 years imprisonment and not more than life. Because those sentences are mandatory minimums and must run consecutively, Barron faces a minimum sentence of 45 years imprisonment.
The statutory penalty for possession with intent to distribute 5 or more grams of actual methamphetamine is not less than 10 years imprisonment and not more than life due to Barron’s criminal history. The statutory penalty for possession with intent to distribute heroin is not more than 30 years. The statutory penalty for possession of a machinegun is not more than 10 years. Barron also faces supervised release of not less than 8 years after his term of imprisonment and a potential fine of up to $8 million.
Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the FBI Little Rock Field Office, announced the guilty verdict. The investigation was conducted by the Little Rock Police Department and the GETROCK Task Force of the FBI.
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
Operation Quack Attack Leads to Multiple Arrests in Chicot CountyRead the Press Release
LITTLE ROCK—Fifteen federal defendants are in custody after federal and state authorities made numerous arrests as part of an ongoing investigation. Operation Quack Attack has resulted in the identification of multiple drug traffickers and the seizure of large quantities of cocaine, crack cocaine, methamphetamine, and marijuana in the Chicot County area.
Operation Quack Attack, an Organized Crime Drug Enforcement Task Force investigation, is being conducted by the FBI and the Arkansas State Police. In 2016, authorities began a joint investigation after an increase in violence related to drug trafficking in the Chicot County area. Today’s arrests are announced by Cody Hiland, United States Attorney for the Eastern District of Arkansas, Diane Upchurch, Special Agent in Charge of the FBI Little Rock Field Office, and Arkansas State Police Colonel Bill Bryant, in conjunction with the unsealing of the indictments of 15 defendants who were charged by a federal grand jury on September 5, 2019. In addition to the FBI and Arkansas State Police, the Arkansas Community Correction Special Response Team provided assistance throughout the investigation. Assistance with today’s operation was also provided by the Lake Village Police Department and the Chicot County Sheriff’s Office.
Seven indictments charging 15 individuals in the Eastern District of Arkansas, along with a federal complaint charging one defendant in the Western District of Arkansas, were unsealed on Tuesday. Law enforcement officers arrested 11 defendants early Tuesday morning, while four defendants were already in federal or state custody on unrelated charges. Davidlon Palmer, 40, of Eudora, is the lone federal defendant in the investigation who remains a fugitive. Five defendants have pending state arrest warrants as part of the operation.
Individuals involved in this case have numerous violent prior criminal convictions, including state and federal drug trafficking offenses, aggravated assault, terroristic act, residential burglary, commercial burglary, murder 2nd degree, possession of firearms by certain persons, and interstate travel in aid of racketeering.
"Today’s arrests signify our commitment to stopping the violence that goes hand-in-hand with drug trafficking," U.S. Attorney Hiland said. "We appreciate the collaboration between the federal and state partners that made this investigation possible."
During the course of Operation Quack Attack, investigators conducted 58 controlled purchases of drugs and executed two search warrants. Authorities have 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.
During arrest operations Tuesday morning six additional firearms, including two AR-style rifles and a "street sweeper" shotgun with a multi-shell drum attached, were recovered, as well as another $3,927 in suspected drug proceeds.
"Prolonged investigations such as Operation Quack Attack serve to highlight the positive and enduring working relationships amongst members of Arkansas law enforcement and protect our communities from violent drug traffickers," SAC Upchurch said. "It is with sincere appreciation that I would like to thank the U.S. Attorney’s Office, Arkansas State Police, and Arkansas Community Correction for their assistance with this investigation."
The defendants face various drug trafficking and gun charges. The most serious drug charges carry a penalty range of not less than 10 years in prison, and not more than life, a fine of up to $10,000,000, and not less than five years of supervised release.
The federal defendants arrested Tuesday will be arraigned before United States Magistrate Judge Joe J. Volpe on Thursday. The federal defendants in state custody will be arraigned at a later date.
Operation Quack Attack is a joint investigation between the FBI, the Arkansas State Police, and the Arkansas Community Correction Special Response Team. Assistant United States Attorney Julie Peters is prosecuting the case. An indictment contains only 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:
http://www.justice.gov/edar
Twitter: @EDARNEWS
OPERATION QUACK ATTACK
FEDERAL INDICTMENTS/DEFENDANTS
United States v. Cantral Huggins et al., 4:19CR530 DPM
Cantral Huggins, aka Cantrell, aka Crumb – age 40, Benton, AR
Kashif Lucas – age 35, Lake Village, AR
Steven Jordan, aka Tar Baby – age 42, Little Rock, AR
Anthony Bailey, aka Antonio, aka Tony – age 30, Lake Village, AR
Deangalo Furlow – age 31, Lake Village, AR
Tiffany Huggins – age 32, Benton, AR
Latoya Jackson – age 35, Conway, AR
Tristen Taylor – age 21, Eudora, AR
Sheldon Wilson, aka Tae – age 39, Lake Village, AR
United States v. Ramien Collins, 4:19CR528 JM
Age 38, Monticello, AR
United States v. Deyvon King, 4:19CR531 JM
Age 41, of Lake Village, AR
United States v. Donnie Miller, 4:19CR532 BSM
Age 58, of Lake Village, AR
United States v. Davidlon Palmer, aka DP, 4:19CR533 KGB*
Age 40, of Eudora, AR
United States v. Everette Ross, aka Pumpkin, 4:19CR534 DPM
Age 49, of Lake Village, AR
United States v. Jessie Williams, aka Boone, 4:19CR535 BRW
Age 35, of Dermott, AR
* Fugitive
Bakersfield Man Charged with Illegally Possessing a Firearm That Was Converted into Machine GunRead the Press Release
FRESNO, Calif. — A federal grand jury returned an indictment today against Liodam Gonzalez, 27, of Bakersfield, charging him with being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Aug. 30, at 3:20 a.m., law enforcement officers received an alert indicating that gunshots had been fired on South Kern Street in Bakersfield. The spent shell casings were traced to Gonzalez’s residence where more bullet casings were found on the car that he drove. A search of the residence yielded a Glock handgun that was converted to fire as a fully automatic machine gun.
This case is the product of an investigation by Homeland Security Investigations (HSI) and the Bakersfield Police Department. Assistant U.S. Attorney Thomas Newman is prosecuting the case.
If convicted, Gonzalez faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Postal Employee Sentenced to over Seven Years in Prison for Delivering Meth: Defendant is Part of Operation “Money Don’t Sleep”Read the Press Release
LITTLE ROCK—A letter carrier from West Memphis was sentenced Wednesday for his role in a methamphetamine conspiracy that federal authorities have charged as Operation "Money Don’t Sleep." Hayward Cleavon Shaw, 44, was sentenced to 90 months in federal prison by U.S. District Judge James M. Moody. Cody Hiland, United States Attorney for the Eastern District of Arkansas, announced today’s sentencing.
Operation "Money Don’t Sleep," run by the Organized Crime Drug Enforcement Task Force, 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. The investigation was initiated in 2015 by the DEA Little Rock District Office and the West Memphis Police Department.
Shaw, while working as a postal employee, would assist drug distributors by helping them locate and divert packages. In particular, on January 27, 2017, a package was on its way to West Memphis from Moreno Valley, California. Law enforcement was tracking this package as part of their investigation. Once agents intercepted the package, DEA deployed a canine, who alerted to the presence of narcotics in the package. Agents obtained a search warrant, which revealed over 2500 grams of methamphetamine in the package.
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 more arrests in June 2019. Shaw was charged on July 11, 2017, with conspiracy to distribute methamphetamine and theft of mail by a postal employee.
Judge Moody also sentenced Shaw, who pleaded guilty to conspiring to distribute methamphetamine on April 11, 2019, to two years of supervised release following his term of imprisonment. The theft of mail charge was dismissed as part of Shaw’s plea agreement.
The investigation was conducted by the Drug Enforcement Administration, the United States Postal Inspection Service, the United States Postal Service Office of Inspector General, and the West Memphis Police Department.
This news release, as well as additional information about the office of the United States Attorney for the Eastern District of Arkansas, is available on-line at
http://www.justice.gov/edar
Twitter:
@EDARNEWS
Pine Bluff Man Pleads Guilty to Mailing White Powder to Senator’s OfficeRead the Press Release
LITTLE ROCK – A Pine Bluff man pleaded guilty today to mailing white powder to United States Senator Tom Cotton’s office. Henry Goodloe, 77, entered his guilty plea earlier today before United States District Judge Kristine G. Baker.
On November 7, 2018, a federal grand jury indicted Goodloe for mailing a threat to injure the addressee, and for conveying false information related to possessing biological weapons. Thursday, Goodloe pleaded guilty to one count of conveying false information about possessing a biological weapon.
In August 2018, Goodloe mailed a letter to Senator Cotton’s Washington, D.C., office. The letter’s return address was Goodloe’s home address. The letter, which contained the statement "maybe this will get your attention," contained a white powdery substance. A Senate mail facility intercepted the letter, and a hazardous material response team later determined that the substance was unbleached flour and starch.
Judge Baker will sentence Goodloe at a later date. Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the FBI’s Little Rock Field Office, announced today’s guilty plea. Goodloe’s crime is punishable by not more than five years’ imprisonment. The case was investigated by the Joint Terrorism Task Force of the FBI and is being 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
http://www.justice.gov/edar
Twitter:
@EDARNEWS
Little Rock Man Sentenced to Five Years in Prison for Million-Dollar Equipment Flipping SchemeRead the Press Release
LITTLE ROCK—A Little Rock man was sentenced for orchestrating a scheme that defrauded a government program intended help non-profits, municipal agencies, and disadvantaged businesses. Mark Gregory Jackson, Sr., 62, of Little Rock, was sentenced to 60 months in federal prison by United States District Judge Brian S. Miller.
Judge Miller also sentenced Jackson to three years of supervised release following his term of imprisonment. Jackson and co-conspirators Jimmy Don Winemiller, Jr., 54, and Don “Terrell” Stephens, Jr., 40, also of Little Rock, all pleaded guilty in July 2018 to conspiring to commit wire fraud. Judge Miller ordered Jackson to forfeit over $1 million and pay up to $350,000 to settle related tax deficiencies. Last October, Judge Miller sentenced Stephens to 30 days in jail and ordered him to forfeit over $125,000. This March, Judge Miller sentenced Winemiller to 20 months’ imprisonment and ordered him to forfeit nearly $275,000.
The scheme targeted the Federal Surplus Property Donation Program, which allowed qualifying non-profits, municipal agencies, and disadvantaged businesses to acquire government surplus at special below-market rates. Recipients are required to demonstrate a legitimate need for the surplus, and they must agree not to sell, lease, or rent it.
Jackson operated through his construction business, Kingridge Enterprises, Inc. He gained access to the program by falsely claiming his disadvantaged nephew owned and operated Kingridge. In truth, the nephew never worked for Kingridge, drew no salary, exercised zero control, and lived over 100 miles away from its Little Rock headquarters.
Once in the program, Jackson gave false justifications to acquire surplus, which was usually construction equipment. After obtaining the construction equipment under these false pretenses, Jackson sold the equipment at steep markups. To conceal the fraud, Jackson made buyers sign sham “joint venture” contracts, and he attempted to hide the activity from investigators.
A 2013 deal illustrated the scheme. On October 1, 2013, an out-of-state equipment dealer wired Winemiller $20,000 for a CAT 621B Scraper. Upon receipt, Winemiller paid Jackson $18,500. On October 2, Jackson, through his construction business, successfully requested donation of the CAT 621B Scraper for just $12,000 by falsely claiming Kingridge needed it for a “$1.1 Million Dollar Corp [sic] Engineer Project.” Over four years, Jackson unlawfully flipped more than 100 pieces of equipment through deals like this, making over $1 million in the process.
Cody Hiland, U.S. Attorney for the Eastern District of Arkansas, Mo Myers, Special Agent in Charge of the Memphis Field Office of the FBI, Don Abram, Special Agent in Charge for the Central Region of the Office of the Inspector General for the U.S. Small Business Association, and Jamie Willemin, Special Agent in Charge for the Southwest Region of the Office of the Inspector General for the U.S. General Services Administration, announced today’s sentencing. Assistant United States Attorney Alexander D. Morgan prosecuted the case for the United States following a multi-year investigation by FBI-Memphis, SBA-OIG, and GSA-OIG.
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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 on-line at
http://www.justice.gov/edarTwitter:
@EDARNEWSOperation Mad Hatter Leads to Multiple Arrests in Central ArkansasRead the Press Release
LITTLE ROCK— Fifteen defendants are in custody after a DEA operation led to several arrests this morning as part of a federal drug investigation. Operation Mad Hatter has resulted in the identification of several drug traffickers and the seizure of large quantities of cocaine, ecstasy, methamphetamine, and heroin.
Operation Mad Hatter, run by the Organized Crime Drug Enforcement Task Force, is an ongoing DEA Domestic Cartel Initiative investigation. Today’s arrests follow the unsealing of an indictment of 19 individuals who were charged by a federal grand jury on August 7, 2019. Of those, 15 are now in custody, and law enforcement has made contact with the remaining four defendants. In February 2019, DEA made the first arrests related to Operation Mad Hatter, and today’s arrests stem from activity uncovered during the ongoing investigation. Ten defendants had been arrested throughout the investigation, and the remaining five were arrested this morning, completing this phase of the operation.
During the course of Operation Mad Hatter, investigators have seized 17 kilograms of methamphetamine, 4 kilograms of cocaine, 249 grams of crack cocaine, over 1 kilogram of heroin, over 200 diverted prescription pills, over $107,000 in assets, and numerous firearms.
“The charges in Operation Mad Hatter are an example of the continued pressure we will apply to drug trafficking organizations,” stated Cody Hiland, United States Attorney for the Eastern District of Arkansas. “Protecting our citizens from the violence that surrounds drug trafficking is a top priority for our office, and we appreciate the efforts of our law enforcement partners who were instrumental in carrying out this investigation.”
"These indictments and arrests should serve as a warning and send a clear message—we will relentlessly pursue these violent criminals and drug traffickers plaguing our communities and bring them to justice,” DEA Assistant Special Agent in Charge Justin King said. “These individuals were responsible for infesting our communities with more than drugs—they threatened our citizens with guns and violence. The DEA stands here today with our federal, state, and local law enforcement partners, confident that we have dismantled this violent drug trafficking organization and have made the streets in these communities safer.”
“The U.S. Postal Inspection Service works tirelessly to stop drug trafficking organizations from using the U.S. Mail to transport drugs into our communities,” said U.S. Postal Inspector Mona Hernandez. “Dismantling this organization helps us protect our employees and our customers from the violence related to drug trafficking and is just one example of the great work we can accomplish when we combine forces with our federal, state, and local partners.”
Operation Mad Hatter is a joint investigation between the DEA Little Rock District Office, United States Postal Inspection Service, Pine Bluff Police Department, Jefferson County Sheriff’s Department, Arkansas State Police, Arkansas Community Corrections, Pulaski County Sheriff’s Department, Benton Police Department, Little Rock Police Department, and the Arkansas National Guard Counterdrug Program.
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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/edarTwitter:
@EDARNEWSHelena-West Helena Resident Indicted for Supporting a Terrorist OrganizationRead the Press Release
LITTLE ROCK— A Helena-West Helena resident has been charged with providing support to a terrorist organization. A federal grand jury has charged Bilal Al-Rayanni, a 28-year-old Yemeni national living in Arkansas, with supporting a terrorist organization in Yemen as well as providing a false name on a passport.
Assistant Attorney General for National Security John C. Demers, United States Attorney for the Eastern District of Arkansas Cody Hiland, Assistant Director Mike McGarrity of the FBI’s Counterterrorism Division, and FBI Special Agent in Charge of the Little Rock Field Office Diane Upchurch announced the charges on Friday.
The superseding indictment alleges that Al-Rayanni, also known as Bilal Kassim Alawdi, provided material support and resources to a foreign terrorist organization known as Al Qa’ida in the Arabian Peninsula (AQAP). According to the superseding indictment, Al-Rayanni provided support by working as personnel for the AQAP for three months in Yemen in 2014, knowing that the organization engaged in terrorism.
Al-Rayanni lived in Arkansas prior to traveling to Yemen in 2014. The superseding indictment states that this activity occurred within an extraterritorial jurisdiction of the United States, meaning that Al-Rayanni’s alleged criminal actions took place out of the country, before he returned to Arkansas.
Al-Rayanni was originally charged on July 11, 2019, in a one-count indictment charging him with making a false statement on a passport application in May of this year, alleging that he used a false name on the application. Al-Rayanni will be arraigned before United States Magistrate Judge Jerome T. Kearney on Thursday. Al-Rayanni has been held in federal custody since originally arrested on the passport charge on June 27, 2019.
“The government’s first responsibility is to protect our people and our national interests,” United States Attorney Hiland said. “Thanks to the diligent work of special agents with the FBI and Department of State, this indictment demonstrates our nation’s continuing commitment in the ongoing fight against foreign terrorist groups and those who promote and support those groups.
“This particular investigation also highlights the critical value to our law enforcement agencies that originates from citizens who take the time and effort to report suspicious activity when it is observed.”
“The top priority of the Little Rock Field Office of the FBI is to protect the citizens of our great state from all types of threats,” stated FBI SAC Upchurch. “I am very proud of the excellent work done by our Joint Terrorism Task Force Agents, Task Force Officers, and other JTTF members and am thankful for the support of our partners at the Department of Justice, U.S. Attorney’s Office, and Diplomatic Security Services.”
The penalty for providing material support to a terrorist organization is not more than 20 years’ imprisonment, and the penalty for providing a false statement on a passport application is not more than 15 years’ imprisonment. Both crimes carry a fine of up to $250,000 and not more than three years of supervised release.
The investigation was conducted by the FBI, the Little Rock Joint Terrorism Task Force, and the State Department’s Diplomatic Security Service. This case is being prosecuted by Assistant United States Attorneys Stacy Williams and Mike Gordon, and National Security Division Attorney Andrew Sigler.
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
http://www.justice.gov/edar
Twitter:
@EDARNEWS
Arkansas Man Charged with Providing Material Support to Al Qa’ida in the Arabian Peninsula While OverseasRead the Press Release
Bilal Al-Rayanni, also known as Bilal Kassim Alawdi, 28, a Yemeni national and resident of Helena-West Helena, Arkansas, was charged on August 8 in a two-count superseding indictment with providing and attempting to provide material support to Al-Qa’ida in the Arabian Peninsula, also known as Ansar al-Shari’a, a designated foreign terrorist organization, and making a false statement in a passport application. Al-Rayanni remains in custody following his arrest and detention on the passport offense on June 27, 2019.
The charges were announced by Assistant Attorney General for National Security John C. Demers, U.S. Attorney J. Cody Hiland for the Eastern District of Arkansas, Assistant Director Mike McGarrity of the FBI’s Counterterrorism Division and Special Agent in Charge Diane Upchurch of the FBI’s Little Rock Division.
Count one of the superseding indictment alleges that from on or about Oct. 1, 2014, through Dec. 31, 2014, while outside the United States, Al-Rayanni provided and attempted to provide material support and resources, in the form of personnel (including himself) and services, to AQAP knowing that the organization was a designated foreign terrorist organization, and knowing that the organization has engaged in and was engaging in terrorist activity and terrorism. Count two alleges that Al-Rayanni provided a false name on his May 13, 2019, passport application.
The case is being investigated by the FBI’s Little Rock Division, the Little Rock Joint Terrorism Task Force and the State Department's Diplomatic Security Service. The case is being prosecuted by the U.S. Attorney’s Office for the Eastern District of Arkansas and the National Security Division’s Counterterrorism Section.