Western District of Arkansas
Press releases recorded for this federal judicial district.
Two Texarkana Men Sentenced to More Than 7 Years in Federal Prison for Drug TraffickingRead the Press Release
Texarkana, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Patrick Taylor, age 32, of Texarkana, Arkansas, and Bruce Witherspoon, age 34, of Washington, Arkansas, were sentenced yesterday. Taylor was sentenced to 100 months in federal prison followed by four years of supervised release. While Witherspoon was sentenced to 92 months in federal prison followed by four years of supervised release, both for one count of Possession of Methamphetamine with Intent to Distribute. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearings in the United States District Court in Texarkana.
According to court records, investigators in Hempstead County coordinated controlled drug purchases from Taylor and Witherspoon between March and July 2017. Investigators recovered 47 grams of methamphetamine from Taylor, and 10 grams of methamphetamine from Witherspoon.
Both Taylor and Witherspoon were indicted by a federal grand jury in June 2018. Taylor entered a guilty plea in August 2018, and Witherspoon entered a guilty plea in October 2018.
These cases were investigated by the South Central Drug Task Force (SCDTF), the Federal Bureau of Investigation (FBI), and the Hempstead County Sheriff’s Department. Assistant United States Attorney Denis Dean prosecuted the case for the United States.
Seven Defendants Sentenced to over 39 Years Combined for Methamphetamine Trafficking in Fort Smith, Arkansas AreaRead the Press Release
Fort Smith, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas announced today that seven individuals were sentenced by the United States District Court for their roles in a methamphetamine trafficking ring, which operated in the Fort Smith, Arkansas area. The Honorable P.K. Holmes, III presided over the sentencing hearings in the United States District Court in Fort Smith.
According to court records, on June 5, 2018, a federal grand jury returned a sixteen (16) count Indictment against eight (8) individuals in the Fort Smith, Arkansas area for activities in a large-scale drug trafficking conspiracy. This drug trafficking ring was responsible for the distribution of multiple kilograms of methamphetamine dating back as far as early 2015.
Defendants in this conspiracy received the following sentences:
Brian Christopher Jones, age 38, of Fort Smith, Arkansas was sentenced yesterday to 240 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. Jones was indicted in the Western District of Arkansas in June 2018 and plead guilty in August 2018.
Tina Renee Branson, age 53, of Winslow, Arkansas was sentenced yesterday to 24 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. Branson was indicted in the Western District of Arkansas in June 2018 and plead guilty in August 2018.
Christopher Mitchell Harbour, age 42, of Fort Smith, Arkansas was sentenced yesterday to 46 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. Harbour was indicted in the Western District of Arkansas in June 2018 and plead guilty in October 2018.
Amber Dawn Boursh, age 37, of Mountainburg, Arkansas was sentenced today to 24 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. Boursh was indicted in the Western District of Arkansas in June 2018 and plead guilty in August 2018.
Belinda Marvelle McBay, age 47, of Fort Smith, Arkansas was sentenced today to 51 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. McBay was indicted in the Western District of Arkansas in June 2018 and plead guilty in October 2018.
April Jo Thompson, age 35, of Camden, Arkansas was sentenced today to 41 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. Thompson was indicted in the Western District of Arkansas in June 2018 and plead guilty in October 2018.
Jimmy Franklin Fore, age 57, of Paris, Arkansas was sentenced today to 51 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine and Felon in Possession of a Firearm to run concurrently. Fore was indicted in the Western District of Arkansas in June 2018 and plead guilty in July 2018.
An eighth co-defendant on the same Indictment, Dylan Dempsey, entered a plea of guilty to one (1) count of Conspiracy to Distribute Methamphetamine on February 20, 2019 and will be sentenced at a later date.
This case was investigated by the Drug Enforcement Administration, the 12th Judicial Drug Task Force, the 21st Judicial Drug Task Force, the Crawford County Sheriff’s Office, the Sebastian County Sheriff’s Office, the Fort Smith Police Department, the Van Buren Police Department and the Arkansas National Guard Counter Drug. Assistant United States Attorney’s Candace Taylor and Aaron Jennen is prosecuting the case for the Western District of Arkansas.
El Dorado Woman Sentenced to over 4 Years in Federal Prison for Wire Fraud and Possession of MethamphetamineRead the Press Release
El Dorado, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Meredith Atwell, age 39, of Huttig, Arkansas was sentenced February 13, 2019 to 54 months in federal prison followed by three years of supervised release on one count of Wire Fraud and one count of Possession of a Prohibited Object in Prison. The Honorable Susan O. Hickey presided over the sentencing hearings in the United States District Court in El Dorado.
According to an Information filed by the United States Attorney, Atwell was employed by South Arkansas Substance Abuse treatment center (SASA) in 2015 when she began converting the non-profits for her personal use by printing out corporate checks and forging the signatures of SASA board members. Atwell continued this embezzlement from SASA into 2016 and stole over $140,000 from the non-profit before the financial condition of the company deteriorated and it finally closed.
The embezzlement from SASA came to light during the larger Western District of Arkansas United States Attorney’s Office investigation into the State of Arkansas’s General Improvement Fund (GIF) expenditures from Act 791 sponsored by State Senator Jon Woods in 2013. SASA had received over $600,000 in GIF funds from Act 791 in 2013 and the investigation into the expenditure of those funds revealed Atwell’s diversion of those funds for her own use.
While Atwell was incarcerated on charges relating to her plea to the wire fraud charges against SASA, she was also convicted of Possessing a Prohibited Object (methamphetamine) while in prison.
Atwell pled to guilty to an Information filed by the United States Attorney on August 24, 2017 on the wire fraud charges and pled guilty to a later Indictment on the Prohibited Object charge on August 9, 2018.
This case was investigated by the Union County Sheriff’s Department, the Federal Bureau of Investigation, the United States Marshal Service, and prosecuted by AUSA’s Ben Wulff.
Fayetteville Sex Offender Sentenced to 10 Years in Federal Prison for Attempted Online Enticement of A MinorRead the Press Release
Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Timothy Reddin, age 68, of Fayetteville, Arkansas, was sentenced yesterday to 120 months in federal prison without the possibility of parole followed by twenty-five years of supervised release on one count of Attempted Online Enticement of a Minor. The Honorable Timothy L. Brooks, United States District Judge, presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in July of 2018, an agent with Homeland Security Investigations was conducting an undercover investigation into the online enticement of minors to engage in sexual activity in the Northwest, Arkansas area. During such operation, law enforcement, utilizing an online persona of a 14 year old male, logged into an undercover social media account. Shortly thereafter, an individual, later identified as Reddin, contacted the 14 year old persona. Reddin quickly began inquiring about the purported minor’s sexual experience. Reddin then expressed a willingness to engage in sexual activity with the minor. In early August, specific plans were made by Reddin and the purported minor to meet and engage in sexual activity. In response, law enforcement set up surveillance on the meet location. Reddin soon thereafter arrived at the predetermined location and was taken into custody.
A federal grand jury indicted Reddin in September of 2018, and he pleaded guilty in October of 2018. During sentencing, the Government presented the Court with evidence that Reddin was a previously convicted sex offender at the time of his arrest.
This case was investigated by Homeland Security Investigations and the Northwest Arkansas Internet Crimes Against Children Taskforce. Assistant United States Attorney Dustin Roberts prosecuted the case for the United States.
Fayetteville Man Sentenced to 15 Years in Federal rison for Receiving and Possession of Child PornographyRead the Press Release
Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced today that Joshua Box, age 35, of Fayetteville, Arkansas was sentenced yesterday to 180 months in federal prison followed by thirty years of supervised release, and ordered to pay a total of $13,000.00 in restitution for one count each of Receiving Child Pornography and Possession of Child Pornography. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in May of 2018, Arkansas Community Correction (ACC) was conducting a home visit/compliance check on Box’s residence, as he is a supervised registered sex offender. Box admitted to ACC officers that he had downloaded child pornography from the Dark Web and saved it to his hard drive. Box’s electronic devices were seized by Homeland Security Investigators, and a forensic review yielded images and videos of child pornography.
Box was indicted in May 2018 on federal charges and plead guilty in August 2018.
This case was investigated by the Internet Crimes Against Children (ICAC) Task Force and the National Center for Missing and Exploited Children (NCMEC). Assistant United States Attorney Denis Dean prosecuted the case for the United States.
Fayetteville Man Sentenced to 8 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Titus Parks, age 43, of Fayetteville, Arkansas, was sentenced today to 96 months in federal prison followed by three years of supervised release for one count of Possession of Methamphetamine with Intent to Distribute. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, during the course of an investigation into methamphetamine trafficking in the Western District of Arkansas, the Fourth Judicial District Drug Task Force identified Parks as a distributor of methamphetamine in Northwest Arkansas.
In April of 2018, investigators arranged and conducted controlled purchases of methamphetamine from Parks. A search warrant was executed for the defendant’s residence on April 12, 2018. Investigators recovered a bag containing approximately 36 grams of methamphetamine.
Parks was indicted by a federal grand jury in April 2018 and entered a guilty plea in September 2018.
This case was investigated by the Fourth Judicial District Drug Task Force. Assistant United States Attorney Amy Driver prosecuted the case for the United States.
Rogers Man Sentenced to over 15 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Stephen Ray Wilson Jr., age 39, of Rogers, Arkansas, was sentenced today to 188 months in federal prison followed by five years of supervised release and ordered to pay a fine of $3,900.00 on one count of Distribution of Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, during the course of an investigation into methamphetamine trafficking in the Western District of Arkansas, agents with the Drug Enforcement Administration (DEA) identified Wilson as a distributor of methamphetamine in the Benton County, Arkansas area.
In January of 2018, the DEA arranged and conducted a controlled purchase of methamphetamine from Wilson. The substance purchased was sent to the DEA South Central Laboratory for testing. The lab determined that the substance contained 52.9 grams of actual methamphetamine.
Wilson was indicted by a federal grand jury in April 2018 and entered a guilty plea in June 2018.
This case was investigated by the Drug Enforcement Administration (DEA), Benton County Sheriff’s Office, Rogers Police Department and the Arkansas National Guard Counter Drug Program. Assistant United States Attorney Kim Harris prosecuted the case for the United States.
Fayetteville Man Sentenced to over 9 Years in Federal Prison for Felon in Possession of A FirearmRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Richard Dale Ingram Jr., age 31, of Fayetteville, was sentenced yesterday to 110 months in federal prison followed by three years of supervised release and was ordered to pay a $3,900.00 fine on one count of Felon in Possession of a Firearm. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, on March 28, 2018, detectives with the Fourth Judicial Drug Task Force in Washington County, Arkansas conducted a search of the Fayetteville, Arkansas residence of Ingram. Ingram is a convicted felon currently on state supervision with the Arkansas Department of Correction and as such has consented to a search of his residence at any time.
When detectives made entry in Ingram's residence, Ingram attempted to flee out a back window and was apprehended. During their search of the residence, detectives located an Iver Johnson .22 caliber pistol in the toilet tank in the bathroom. Ingram admitted that the firearm belonged to him and that he procured it "on the street".
Ingram was indicted by a federal grand jury in April 2018 and entered a guilty plea in June 2018.
This case was investigated by the 4th Judicial District Drug Task Force. Assistant United States Attorney Denis Dean prosecuted the case for the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
El Dorado Man Sentenced to 24 Months in Federal Prison for Bank FraudRead the Press Release
El Dorado, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Robert Craig “Bob” Smith, age 55, of El Dorado, Arkansas, was sentenced today to 24 months in federal prison followed by five years of supervised release and ordered to pay $850,399.79 in restitution on two counts of Bank Fraud. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in El Dorado.
According to court records, with respect to the first count, Smith was the owner and operator of Working Chemical Solutions, Inc. (WCS), a Delaware corporation located in El Dorado, Arkansas. Working Chemical Solutions, Inc. manufactured chemical products used in three areas of market concentration Consumer Packaged Specialty Products, Industrial Specialty Products and Scientific Specialty Products. One of its products was known as "C'mere Deer" also known as "Wild Game Attractant." Smith obtained two loans and extensions to those loans for his company, WCS, through Timberland Bank in El Dorado, Arkansas. Timberland Bank secured these loans with a security interest in all stock and other instruments, general intangibles and contract rights, including, “C’mere Deer. Smith subsequently sold the “C’mere Deer” formula, confidential information and trademarks to Environmental Science Technologies, LLC for $500,000 in December 2006. Smith paid Timberland Bank $149,035.21 out of the $500,000.00 and kept $350,964.79 for the use of WCS or his personal use.
With respect to the second count, Smith opened business checking accounts in the names of ATS Scientific Group of Louisiana, LLC and Wells Safety and Technical Products of Louisiana, LLC at First Guaranty Bank in Dubach, Louisiana. He also opened business checking accounts in the names of Gilbo, LLC and RCS Investment Trust at First Financial Bank in El Dorado, Arkansas. In March of 2016, during an audit by First Financial Bank’s Internal Audit Department, it appeared that Smith was kiting checks between his Gilbo, LLC and RCS Investment Trust accounts at First Financial Bank and checks drawn on the ATS Scientific Group of Louisiana, LLC and Wells Safety and Technical Products of Louisiana, LLC accounts at First Guaranty Bank. On March 7, 2016, First Financial Bank placed holds on all unverified deposits. As a result of the holds, the checks presented for payment from First Guaranty Bank to First Financial Bank were returned and the checks deposited to First Financial Bank were returned from First Guaranty Bank. Between March 9, 2016 and March 10 2016, checks totaling $499,435 were charged back to ATS Scientific Group of Louisiana, LLC and Wells Safety and Technical Products of Louisiana, LLC accounts at First Guaranty Bank.
Smith was named in a six count indictment and plead guilty to counts three and six in September 2018.
This case was investigated by Federal Bureau of Investigation. Assistant United States Attorney Mark Webb prosecuted the case for the United States.
Springdale Man Sentenced to over 21 Years in Federal Prison for Online Enticement of A MinorRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Eleuterio Flores, age 34, of Springdale, Arkansas was sentenced yesterday to 262 months in federal prison followed by twenty-five years of supervised release and ordered to pay a $10,000.00 fine on one count of Online Enticement of a Minor. The Honorable Timothy L. Brooks, United States District Judge, presided over the sentencing hearing in Fayetteville.
According to court records, in September of 2016, Springdale Police Department developed information that Flores used Facebook Messenger, pretending to be a female pimp named “Elyzabet Estrada” and made contact with a 14 year old female, and enticed a person the 14 year old female to engage in sexual intercourse with him at the Hilltop Inn in Springdale, Arkansas in exchange for $1,200. Flores admitted to making Facebook accounts for people he claimed were involved in prostitution and escort services.
A federal grand jury indicted Flores in March 2017, and he pled guilty in July 2018.
This case was investigated by the FBI and the Springdale Police Department. Assistant United States Attorney Denis Dean prosecuted the case for the United States.
Hot Springs Insurance Agent Pleads Guilty to Defrauding Banks Out of over $3.5 MillionRead the Press Release
Hot Springs, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas announced today that Berry Roland Bishop, age 67, of Hot Springs, Arkansas, pleaded guilty to the offense of Knowingly Defrauding Financial Institutions. The Honorable Susan O. Hickey accepted the plea in the United States District Court in Hot Springs.
According to the Information filed by the United States Attorney’s Office and the plea agreement accepted by the District Court, Bishop defrauded two area banks by two separate schemes. Bishop, president of the Alliance Insurance Group of Arkadelphia, forged the signatures of multiple insurance clients and applied for twenty-seven separate loans in their names with the Bank of Prescott. Bishop applied for these loans without the authorization or knowledge of those clients and, in the process, defrauded the Bank of Prescott out of over $2.1 million. As part of his plea, Bishop also admitted that he defrauded Citizens Bank out of $200,000 by misrepresenting the financial condition of his company, specifically the condition of the collateral, to induce Citizens to approve loans to his company that would not have otherwise been authorized. Bishop applied for these loans from Citizens Bank and the Bank of Prescott to improve the cash flow of his business. According to the plea agreement, both the Government and Bishop agree that the total loss amount attributed to Bishop’s criminal conduct will exceed $3.5 million dollars.
The defendant’s sentence will be determined by the court at a later date. In this case, Bishop faces a maximum sentence of up to thirty years in prison and a fine up to $ 1 million dollars for the Bank Fraud charge.
The FBI investigated the case and Assistant U.S. Attorney Benjamin Wulff of the Western District of Arkansas is prosecuting the case.
Fayetteville Man Sentenced to over 7 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Leander Shepard, age 60, of Fayetteville, Arkansas was sentenced today to 87 months in federal prison followed by four years of supervised release on one count of Possession with Intent to Distribute Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, In early 2018, detectives with the 4th Judicial Drug Task Force (hereinafter “D.T.F.”) were contacted and advised of a person in California that was requesting an address in Fayetteville, Arkansas to ship a significant quantity of methamphetamine. On March 6, 2018, D.T.F. detectives located a known vacant residence in Fayetteville (hereinafter “the residence”). On March 8, 2018, the D.T.F. was informed that the California contact had sent a package containing drugs overnight via U.S. Mail to the residence with a projected delivery of 10:00am on March 9.
On March 9, 2018, D.T.F. detectives conducted surveillance of the residence. At approximately 10:00 am, a vehicle driven by Shepard arrived in front of the residence and parked nearby. At 10:40 am, a U.S. Mail postal carrier arrived in front of the residence and exited his vehicle with a package. Detectives observed Shepard approach the postal carrier in an attempt to retrieve the package. The postal carrier advised Shepard that he needed to place the package on the porch. Once on the porch, Shepard picked up the package and was confronted by D.T.F. detectives. The package was found to contain approximately one pound of methamphetamine and five pounds of marijuana.
The suspected methamphetamine was sent to the Arkansas State Crime Lab were it was tested and determined to contain actual methamphetamine.
A federal grand jury indicted Shepard in April 2018, and he pled guilty in August 2018.
This case was investigated by the 4th Judicial Drug Task Force. Assistant United States Attorney Denis Dean prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
CONTACT: Charlie Robbins
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Gentry Man Sentenced to 14 Years in Federal Prison for Distributing Child Pornography OnlineRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Cherokee Steward, age 24, of Gentry, Arkansas was sentenced today to 168 months in federal prison without the possibility of parole to be followed by twenty-five years of supervised release on two Counts of Distribution of Child Pornography. The Honorable Timothy L. Brooks, United States District Judge, presided over the sentencing hearing in Fayetteville.
According to court records, in March of 2018, federal law enforcement developed information that a Northwest Arkansas resident was distributing images of child pornography across the social media application Google Hangout. In response, a federal search warrant was obtained and executed on the residence. Upon gaining entry, law enforcement encountered Steward. During a post-Miranda interview, Steward admitted to obtaining images of child pornography online. Steward further admitted that he utilized the Google Hangout application to send images of child pornography to other users.
A federal grand jury indicted Steward in April 2018, and he pled guilty in July 2018.
This case was investigated by the Department of Homeland Security Investigations (HSI) and the Northwest Arkansas Internet Crimes Against Children Taskforce. Assistant United States Attorney Dustin Roberts prosecuted the case for the United States.
Siloam Springs Man Sentenced to 10 Years in Federal Prison for Firearms ViolationRead the Press Release
Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Adam Flores, age 28, of Siloam Springs, was sentenced today to 120 months (the statutory maximum) in federal prison followed by three years of supervised release on one count of Felon in Possession of a Firearm. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, On February 17, 2018, during the early morning hours, a deputy with the Benton County Sheriff’s Office initiated a traffic stop on Flores, due to the tags on the vehicle not matching the vehicle. Once the deputy made contact with Flores, he requested insurance and registration for the vehicle, at which time Flores advised that he had recently purchased the vehicle from his uncle. The deputy then asked for a bill of sale, which Flores could not provide. While attempting to locate the VIN number for the vehicle the deputy observed a shotgun wedged between the driver's seat and driver's door. When the deputy inquired as to why Flores had not mentioned that he had a firearm in his possession, Flores displayed a pistol and then fled the scene. After a pursuit, Flores was taken into custody.
This case was investigated by Benton County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorney David Harris prosecuted the case for the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
Winslow Man Sentenced over 10 Years Federal Prison for Sexual Offense Against A MinorRead the Press Release
Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Joseph Snow, age 25, of Winslow, Arkansas, was sentenced today to 124 months without the possibility of parole followed by twenty years of supervised release on one count of Transportation of a Minor with the intent to Engage in Criminal Activity. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in late January of 2018, the father of a fourteen year old female reported to the Washington County Sheriff’s Office that his daughter was missing from her home and was suspected to be with Snow. During the course of the investigation, it was determined that both the minor and Snow had been engaging in sexual activity. Law enforcement subsequently obtained location services on Snow’s cellular phone, reflecting that it was in or near the Roaring River State Park in Missouri. Consequently, Missouri law enforcement was notified. During a subsequent search of the area, law enforcement located both Snow and the minor. Snow later admitted to engaging in sexual intercourse with the minor while in the Missouri State Park.
A federal grand jury indicted Snow in March 2018, and he pleaded guilty in July of 2018.
This case was investigated by the Washington County Sheriff’s Office, the Northwest Arkansas Internet Crimes Against Children Taskforce, Homeland Security Investigations, and the Barry County Sheriff’s Office. Assistant United States Attorney Amy Driver prosecuted the case for the United States.
Malvern Man Sentenced to over 8 Years in Federal Prison for Drug TraffickingRead the Press Release
Hot Springs, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Larry Speakar, age 51, of Malvern, Arkansas was sentenced today to 100 months in federal prison followed by three years of supervised release on one count of Possession with Intent to Distribute Methamphetamine . The Honorable Susan O. Hickey, United States District Judge, presided over the sentencing hearing in Hot Springs.
According to court records, in March 2017, investigators with the Drug Task Force in Garland County and Homeland Security Investigations initiated an investigation into the drug trafficking activity of Speakar. In March and April 2017, agents conducted three controlled purchases of methamphetamine from Speakar. On April 26, 2017, law enforcement officers stopped a vehicle in Hot Springs for speeding. The driver later identified as Speakar was on parole and had a search wavier on file. A search of his vehicle resulted in officers locating 2 plastic bags containing at least 50 grams of a crystalline substance which field tested positive for methamphetamine.
A federal grand jury indicted Speakar in June 2017, and he pled guilty in March 2018.
This case was investigated by the Garland County Drug Task Force and Homeland Security Investigations. Assistant United States Attorney David Harris prosecuted the case for the United States.
Indiana Man Sentenced to over 8 Years in Federal Prison for Drug TraffickingRead the Press Release
Hot Springs, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Mark C. Smith, age 29, of Indianapolis, Indiana was sentenced today to 97 months in federal prison followed by five years of supervised release on one count of Possession with Intent to Distribute Cocaine and one count of Possession with Intent to Distribute Marijuana. The Honorable Susan O. Hickey, United States District Judge, presided over the sentencing hearing in Hot Springs.
According to court records, on May 24, 2016, Smith, while driving a vehicle on Interstate 30 near Malvern, Arkansas, was stopped by a state trooper for a traffic violation. After a K-9 alerted to the presence of a controlled substance, the vehicle was searched and an officer located packaged bundles under the steering column. The substance inside the bundles field tested positive for cocaine and weighed approximately 2,000 grams. Smith possessed $7,849.00 of U.S. currency on his person as well as a Walmart receipt for an I-phone purchased in Dallas on May 22, 2016.
The detectives submitted the drugs seized from Smith's vehicle (in Arkansas) to the Arkansas State Crime Lab, which confirmed that the substance recovered contained cocaine and weighed 1,966.5 grams.
On or about March 16, 2015, near midnight, Smith was stopped in a GMC Yukon after suspicious activity was observed by law enforcement in an industrial area in Evansville, Indiana. A K-9 alerted to the presence of a controlled substance in the vehicle and Smith was arrested for resisting law enforcement and for driving on a suspended driver's license. After obtaining a search warrant, the vehicle was searched and found to contain twenty gray duct taped packages each containing marijuana, weighing a total of 497 pounds (225 kilograms). Also seized were four cellular telephones from the vehicle and $2,082.00 from Smith's pocket.
A federal grand jury indicted Smith in April 2015 (Indiana) and in June 2016 (Arkansas), and he pled guilty in January 2018.
This case was investigated by the Arkansas State Police and the Indiana State Police. Assistant United States Attorney Amy Driver prosecuted the case for the United States.
Hot Springs Man Sentenced to over 8 Years in Federal Prison for Drug TraffickingRead the Press Release
Hot Springs, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Grealin Thomas, age 39, of Hot Springs, Arkansas was sentenced today to 96 months in federal prison followed by three years of supervised release on one count of Distribution of Methamphetamine. The Honorable Susan O. Hickey, United States District Judge, presided over the sentencing hearing in Hot Springs.
According to court records, in March 2017, investigators with the 18th East Drug Task Force and Homeland Security Investigations conducted a controlled purchase of methamphetamine from Thomas. The methamphetamine was later sent to the Arkansas State Crime lab where it tested positive for methamphetamine.
A federal grand jury indicted Thomas in July 2017, and he pled guilty in June 2018.
This case was investigated by the 18th East Drug Task Force and Homeland Security Investigations. Assistant United States Attorney David Harris prosecuted the case for the United States.
Hot Springs Man Sentenced to over 17 Years in Federal Prison for Online Enticement of A Minor and Ammunition PossessionRead the Press Release
Hot Springs, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Todd McDonald, age 35, of Hot Springs, Arkansas, was sentenced today to 210 months in federal prison followed by ten years of supervised release on one count each of Online Enticement of a Minor and Unlawful Possession of Ammunition. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in Hot Springs.
According to court records, in November, 2016 agents with the Federal Bureau of Investigation were contacted by the mother of a 12 year old girl who resides in Hot Springs, Arkansas regarding sexually explicit text messages sent by an apparent 30 year old adult male. F.B.I. agents viewed messages sent by a person using the user name “Mr. Nobody”, later identified as Todd McDonald to the 12 year old girl via Instagram. The messages included statements from McDonald stating he wanted to take sexually explicit pictures and videos of the girl. Upon questioning, McDonald admitted to sending those messages. On January 4, 2017, FBI agents executed a search warrant of McDonald’s Hot Springs residence where they located, among other contraband, .38 special ammunition, which McDonald was prohibited from possessing based on his criminal history.
A federal grand jury indicted McDonald in April 2017, and he pleaded guilty in October of 2017.
This case was investigated by the FBI. Assistant United States Attorney Denis Dean prosecuted the case for the United States.
Ozark Sex Offender Sentenced to 10 Years in Federal Prison for Child PornographyRead the Press Release
Fort Smith, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Roy Breedlove, age 54, of Ozark, Arkansas, was sentenced today to 120 months in federal prison without the possibility of parole followed by five years of supervised release on Possession of Child Pornography. The Honorable P.K. Holmes, III, Chief United States District Judge presided over the sentencing hearing in the United States District Court in Fort Smith.
According to court records, in May of 2017, federal law enforcement developed information that Breedlove was in possession of child pornography. During the ensuing investigation, a federal search warrant was obtained by the FBI to search his residence. Upon execution of the warrant, law enforcement located several items of digital evidence. A subsequent forensic examination of the confiscated items revealed multiple images of child pornography, including images of adult males engaging in various sex acts with prepubescent females.
Breedlove was indicted by a federal grand jury in April of 2018 and entered a guilty plea in June of 2018. During his change of plea, the Government presented the Court with evidence that Breedlove had previously been convicted of Sexual Abuse and Attempted Rape.
This case was investigated by the FBI. Assistant United States Attorney Amy Driver prosecuted the case for the United States.
Leader of Drug Trafficking Organization Sentenced to over 20 Years in Federal PrisonRead the Press Release
Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas and Little Rock FBI Special Agent in Charge (SAC) Diane Upchurch, announced today that Derrick Nicholson, age 50, of Fayetteville, Arkansas was sentenced October 16, 2018 to 250 months in federal prison followed by five years of supervised release, on one count of Conspiracy to Distribute Methamphetamine and one count of Distribution of 50 Grams or More of actual Methamphetamine; He was ordered to pay fines and fees in the amount of $10,000.
According to court records, in late 2016 and continuing through early 2018 the FBI Safe Streets Task Force (SSTF) conducted an investigation into a local drug trafficking organization led by Derrick Nicholson. Beginning in January 2017, investigators conducted seven separate controlled purchases of methamphetamine and heroin from Derrick Nicholson and his associates. In July, 2017, Derrick Nicholson was arrested by state authorities on firearms charges and was subsequently incarcerated, at which point his wife and coconspirator LaQueecha Nicholson assumed direct control of the organization. However, Derrick continued to play a leadership role in the operation of the organization from jail, coordinating shipments of methamphetamine and other drugs from California, Texas and Mississippi. The investigation was large in scope, covering Northwest Arkansas, Tennessee, Mississippi, Texas and California. In addition to large amounts of methamphetamine, the organization was distributing heroin, cocaine, ecstasy and marijuana. Eleven firearms were seized during the investigation, two of which were stolen, as well as an AK-47. The investigation revealed the identity of other co-conspirators in the organization.
“This sentence is a direct result of two years of hard work and sacrifice put forth by the Northwest Arkansas Safe Street Task Force and local law enforcement,” stated U.S. Attorney Dak Kees. “This operation is a prime example of the commitment Northwest Arkansas law enforcement has towards ensuring the safety of our community.”
“I would like to sincerely thank all of our partners with the Northwest Arkansas Safe Streets Task Force, the US Attorney’s Office, and all of the hard working men and women within FBI-Little Rock who participated in the successful investigation and prosecution of this case,” stated SAC Upchurch. “We hope that Derrick Nicholson’s 20 year jail sentence will serve as a warning to others that the people of the State of Arkansas will not tolerate the illegal distribution of narcotics within our state.”
In January of 2018, Derrick Nicholson, LaQueecha Nicholson, Johnny Nicholson, Rubin Morrow, Derrick Hill and Jeffery Hollingsworth were charged in a 15-count Indictment by the Grand Jury sitting in the Western District of Arkansas. In March of 2018, seven additional co-conspirators were charged by the Grand Jury in separate indictments. In addition to Derrick Nicholson, the following individuals have been convicted and sentenced as part of this case:
LaQueecha Nicholson, age 42, of Fayetteville, Arkansas was sentenced to 100 months in federal prison followed by four years of supervised release, on one count of Conspiracy to Distribute Methamphetamine and one count of Distribution of 50 Grams or More of a Mixture of Methamphetamine.
Johnny Nicholson, age 43, of Springdale, Arkansas was sentenced to 72 months in federal prison followed by four years of supervised release, on one count of Distribution of five or more grams of methamphetamine.
Marcus Derby, age 37, of Dallas, Texas was sentenced to 96 months in federal prison followed by three years of supervised release, on one count of Conspiracy to Distribute Cocaine.
Jeffery Hollingsworth, age 50, of Fayetteville, Arkansas was sentenced to 87 months in federal prison followed by three years of supervised release, on one count of Conspiracy to Distribute Methamphetamine.
Derrick Hill, age 42, of Fayetteville, Arkansas was sentenced to 72 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearings in the United States District Court in Fayetteville.
This case was investigated by the FBI Safe Streets Task Force and prosecuted by AUSA David Harris as a part of the Department of Justice’s Project Safe Neighborhoods Initiative, which is a nationwide effort that brings together federal, state and local law enforcement resources to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them.
Hot Springs Man Sentenced to over 12 Years in Federal Prison for Bank RobberyRead the Press Release
Hot Springs, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Henry Smith, age 67, of Hot Springs, was sentenced to 151 months in federal prison followed by three years of supervised release on one count of Bank Robbery. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in Hot Springs.
According to court records, in November 2017, officers with the Hot Springs Police Department were dispatched to Citizens Bank on Airport Road regarding a bank robbery. The investigation revealed that Smith entered the bank wearing a ski mask and gloves. Smith demanded the teller to put money into a bag that he placed on the counter and represented that he possessed a firearm. Within minutes, officers from the Hot Springs Police Department responded to the area, viewed surveillance footage and observed Smith going into a nearby building. Smith was subsequently located and taken into custody. The currency taken from the bank was recovered.
Smith was indicted by a federal grand jury in December 2017 and pled guilty on March 5, 2018. Smith has a lengthy criminal history that includes prior convictions for bank robbery.
This case was investigated by the Hot Springs Police Department and assisted by the FBI. Assistant United States Attorney David Harris prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Tennessee Man Sentenced to 10 Years in Federal Prison for Passing Counterfeit Securities of an OrganizationRead the Press Release
Fayetteville, AR – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced today that Jason Jerrell Smith, age 34, of Germantown, Tennessee was sentenced yesterday to 120 months in federal Prison followed by three years supervised release and ordered to pay restitution (the amount of restitution will be determined at a later date by the courts) for one count of Passing Counterfeit Securities of an Organization. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in June of 2017, Smith was visiting Rogers and Bentonville, Arkansas, and announced that he was running for President of the United States and falsely represented himself as “Joshua Gaters.” During his visit to Northwest Arkansas, Smith wrote and passed a counterfeit check on a local bank in the name of “Gaters and Lester Realty Group.” The check, written in the amount of $22,212.00, was alleged to be for the lease of office space. No such checking account existed with the bank.
Smith was indicted by a federal grand jury in January 2018 and entered a guilty plea in April 2018.
The investigation was conducted by the United States Secret Service, the Bentonville Police Department, and the Rogers Police Department. Assistant United States Attorney Amy Driver prosecuted the case for the United States.
Pea Ridge Arkansas Man Sentenced to 6 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that John R. Gosney, IV, age 29, of Pea Ridge, Arkansas, was sentenced today to 72 months in federal prison followed by three years of supervised release on one count of Distribution of Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, the Drug Enforcement Administration (DEA) learned that methamphetamine was being distributed in Northwest Arkansas by Gosney. During the investigation, DEA arranged and conducted a controlled purchase of methamphetamine from Gosney. The substance purchased was sent to the DEA South Central Laboratory for testing. The lab determined that the substance contained 53.8 grams of actual methamphetamine.
Gosney was indicted by a federal grand jury in March 2018 and entered a guilty plea in May 2018.
This case was investigated by the Drug Enforcement Administration (DEA). Assistant United States Attorney Kim Harris prosecuted the case for the United States.
Dallas Texas Man Sentenced to over 6 Years in Federal Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Juan Francisco Alcocer, age 32, of Dallas, Texas, was sentenced yesterday to 75 months in federal prison followed by five years of supervised release on one count of Possession of Methamphetamine with Intent to Distribute. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, during January 2018, investigators received information that Alcocer was distributing methamphetamine in Northwest Arkansas. During the course of the investigation, probable cause was established to support a search warrant for Alcocer’s hotel room. During the search of the hotel room, law enforcement officers revealed pipes, digital scales, and bags of methamphetamine. The DEA Crime Lab results confirmed that the substance seized weighed and contained 480.03 grams of actual methamphetamine.
Alcocer was indicted by a federal grand jury in March 2018 and entered a guilty plea in June 2018.
This case was investigated by the Drug Enforcement Administration and Springdale Police Department. Assistant United States Attorney Amy Driver prosecuted the case for the United States.
Benton County Sex Offender Sentenced to 10 Years in Federal Prison for Child PornographyRead the Press Release
Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Anthony Monjure, age 23, of Bentonville, Arkansas, was sentenced today to 120 months in federal prison followed by twenty-five years of supervised release on one count of Accessing the Internet with the Intent to View Child Pornography. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in April of 2017, the FBI conducted a nationwide undercover investigation into individuals utilizing the internet to post, download, and have discussions about child pornography. During the investigation, the FBI located a social media group that was created and maintained solely for like-minded individuals to share child pornography. While monitoring the group, FBI agents determined that one member, who utilized the screen name of “horneyaf3785,” was from Northwest Arkansas. Ultimately, law enforcement identified the individual from Northwest Arkansas, as Anthony Monjure, a sex offender from Bentonville. In August of 2017, a federal search warrant was executed at Monjure’s residence. During the execution of the warrant, the FBI located in Monjure’s possession a cellular phone, which had the user ID of horneyaf3785 saved to the device.
In June of 2018, Monjure pleaded guilty to Accessing the Internet with the Intent to View Child Pornography. During his change of plea, the Government provided the Court with evidence that Monjure had previously been convicted of an offense related to the Possession of Child Pornography.
This case was investigated by the Federal bureau of Investigations. Assistant United States Attorney Dustin Roberts prosecuted the case for the United States.
Springdale Man Sentenced to over 6 Years in Federal Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Jose Adilio Mancia-Sandoval, age 29, of Springdale, was sentenced today to 78 months in federal prison followed by five years of supervised release on one count of Conspiracy to Distribute Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in the summer of 2015, the Drug Enforcement Administration (DEA) learned that methamphetamine was being distributed in Northwest Arkansas by Mancia-Sandoval. In May of 2016, the DEA arranged and conducted a controlled purchase of methamphetamine from Mancia-Sandoval in Springdale, Arkansas. The substance purchased was sent to the DEA South Central Laboratory for testing. The lab determined that the substance contained 53.0 grams of actual methamphetamine.
Mancia-Sandoval was indicted by a Federal Grand Jury in October 2017 and entered a guilty plea in March 2018.
This case was investigated by the Drug Enforcement Administration (DEA). Assistant United States Attorney Kim Harris prosecuted the case for the United States.
Texarkana Man Sentenced to over 12 Years in Federal Prison for Distribution of Cocaine BaseRead the Press Release
Texarkana, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Aundra Deon Holmes, age 38, of Texarkana, was sentenced today to 130 months on one count of Distribution of Cocaine Base, and a consecutive 15 months for violating the conditions of his supervised release on a previous conviction for methamphetamine distribution. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in Texarkana.
According to court records, during July 2017, investigators with the Federal Bureau of Investigation conducted a controlled purchase for cocaine base utilizing a confidential source from Holmes. The substance purchased from Holmes was determined by the Arkansas State Crime Laboratory to be 26.02 grams of cocaine base.
Holmes was indicted by a federal grand jury in September 2017 and entered a guilty plea in February 2018.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Graham Jones prosecuted the case for the United States.
Fayetteville Man Sentenced to 10 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Jermaine James, age 40, of Fayetteville, was sentenced today to 120 months in federal prison followed by five years of supervised release on one count of Distribution of Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in February of 2017, the Drug Enforcement Administration (DEA) learned that methamphetamine was being distributed in Northwest Arkansas by James. During the investigation, DEA arranged and conducted a controlled purchase of methamphetamine from James. The substance purchased was sent to the DEA South Central Laboratory for testing. The lab determined that the substance contained 30.6 grams of actual methamphetamine.
James was indicted by a federal grand jury in September 2017 and entered a guilty plea in November 2017.
This case was investigated by the Drug Enforcement Administration (DEA). Assistant United States Attorney Kim Harris prosecuted the case for the United States.
El Dorado Man Sentenced to 7 Years in Federal Prison for Distribution of Methamphetamine and Firearms ViolationRead the Press Release
El Dorado, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Tommie Roshaun Glosson, age 23, of El Dorado, was sentenced today to 84 months in federal prison followed by three years of supervised release on one count of Distribution of Methamphetamine and two counts of Felon in Possession of a Firearm. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in El Dorado.
According to court records, in 2017, investigators with the 13th Judicial District Drug Task Force, the Union County Sheriff’s Department, the Federal Bureau of Investigation, and the El Dorado Police Department conducted two controlled purchases from Glosson, first of a firearm and methamphetamine, and later of a firearm. Glosson was subsequently arrested.
Glosson was indicted by a federal grand jury in October 2017 and entered a guilty plea to distribution of methamphetamine and felon in possession of a firearm in February 2018.
This case was investigated by the 13th Judicial District Drug Task Force, the Union County Sheriff’s Department, the Federal Bureau of Investigation, and the El Dorado Police Department. Assistant United States Attorney Graham Jones prosecuted the case for the United States.
Arkansas Man Sentenced to 30 Years in Federal Prison for Sexually Exploiting MinorsRead the Press Release
Fort Smith, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Austin McMahill, age 30, of Wideman, Arkansas, was sentenced today to 30 years in federal prison without the possibility of parole followed by five years of supervised release on one count each of Production of Child Pornography and Possession of Child Pornography. The Honorable Chief Judge P. K. Holmes, III presided over the sentencing hearing in the United States District Court in Fort Smith.
According to court records, in September of 2017, the Arkansas State Police received a report that Austin McMahill made and distributed via Facebook a video portraying him and a minor female engaging in a sexually graphic act. During the ensuing investigation, law enforcement applied for and obtained a search warrant allowing for the seizure and analysis of McMahill’s cellular phone. A subsequent forensic examination of the device revealed numerous videos and photographs of McMahill and the minor female engaged sexual activity. Per the forensic analysis, law enforcement was able to confirm that several images were taken when the minor female was fifteen-years of age. Law enforcement also located approximately 70 images depicting other minors, between 5 and 10 years of age engaging in various sex acts. At sentencing, the Government presented the Court with evidence that McMahill had sexually abused and taken images of an approximately 5 year old female.
McMahill was indicted in December 2017 on federal charges and plead guilty in April 2018.
This case was investigated by Arkansas State Police, Homeland Security Investigations, and the Northwest Arkansas Internet Crimes Against Children Taskforce. Assistant United States Attorney Dustin Roberts prosecuted the case for the United States.
Little Rock Man Sentenced to over 5 Years in Federal Prison for Felon in Possession of A Firearm ViolationRead the Press Release
Hot Springs, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Nico Deshawn Daniels, age 27, of Little Rock, was sentenced today to 70 months in federal prison followed by three years of supervised release on one count of Felon in Possession of a Firearm. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in Hot Springs.
According to court records, in July 2017, officers with the Arkadelphia Police Department were dispatched to multiple businesses that were receiving counterfeit $100 bills. During the investigation, officers were able to locate and stop a vehicle operated by Daniels. During the search of the vehicle, officers located a .38 caliber revolver in the floorboard of the seat that Daniels was sitting in. A criminal history checked showed that Daniels was a convicted felon and on parole.
Daniels was indicted by a federal grand jury in October 2017 and was found guilty by a jury in March 2018.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Arkadelphia Police Department. Assistant United States Attorney’s Denis Dean and Amy Driver prosecuted the case for the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
Former Arkansas State Representative Sentenced to Three Years Probation for Wire FraudRead the Press Release
Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas announced today that Micah Neal, age 43, of Springdale, Arkansas, was sentenced today to three years probation including the first year to be served as home confinement and the second and third years to include 300 hours of community service, he was also ordered to pay restitution in the amount of $200,000.00. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
“Public corruption cases are among the most serious crimes that are investigated and prosecuted in our District,” said U.S. Attorney Kees. “These cases represent the very worst in deception and fraud because they involve a betrayal of the public trust. Jon Woods and Micah Neal were elected to offices in the State of Arkansas and swore an oath to protect and uphold the Arkansas Constitution. They failed that oath by betraying those who voted for them and scheming to steal money that rightfully belonged to the tax-payers and voters in the State of Arkansas. The sentences last week and this week in the public corruption scheme involving G.I.F. funds and bribery are the result of years of hard work by the assigned Assistant United States Attorneys working in partnership with the FBI and the IRS Criminal Investigation. It is my sincere hope that these sentences will serve as a deterrence for any individuals who would attempt to corrupt the legislative process in our State in the future. My office will continue to aggressively pursue public corruption cases and work with our partners in bringing those individuals to justice.”
According to the evidence presented at trial, Jonathan Woods served as an Arkansas State Senator from 2013 to 2017. Between approximately 2013 and approximately 2015, Woods used his official position as a senator to appropriate and direct government money, known as General Improvement Funds (GIF), to two non-profit entities by, among other things, directly authorizing GIF disbursements and advising other Arkansas legislators – including former State Representative Neal, to contribute GIF to the non-profits. Specifically, Woods and Neal authorized and directed the Northwest Arkansas Economic Development District, which was responsible for disbursing the GIF, to award a total of approximately $600,000 in GIF money to the two non-profit entities. The evidence further showed that Woods and Neal received bribes from officials at both non-profits, including Paris, who was the president of a college. Woods initially facilitated $200,000 of GIF money to the college and later, together with Neal, directed another $200,000 to the college, all in exchange for kickbacks. To pay and conceal the kickbacks to Woods and Neal, Paris paid a portion of the GIF to Shelton’s consulting company. Shelton then kept a portion of the money and paid the other portion to Woods and Neal. Paris also bribed Woods by hiring Woods’s friend to an administrative position at the college.
For his part in the scheme, Neal pleaded guilty on Jan. 4, 2017, before U.S. District Judge Timothy L. Brooks of the Western District of Arkansas to one count of conspiracy to commit honest services fraud. Paris pleaded guilty on April 5, 2018, before Judge Brooks to one count of honest services wire fraud. Woods was sentenced September 5, 2018 to 220 months in federal prison, Shelton was sentenced September 6, 2018 to 72 months in federal prison and Paris was sentenced September 12, 2018 to 36 months in federal prison.
The FBI and IRS investigated the case. First Assistant U.S. Attorney Kenneth Elser, Assistant U.S. Attorneys Kyra Jenner and Aaron Jennen of the Western District of Arkansas and Trial Attorney Sean F. Mulryne of the Criminal Division’s Public Integrity Section of the U.S. Department of Justice prosecuted the case.
Two Fort Smith Men Sentenced to A Total of over 32 Years in Federal Prison for Drug TraffickingRead the Press Release
Fort Smith, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Jose Escalante, age 36, of Fort Smith, was sentenced today to 200 months in federal prison followed by five years of supervised release on one count of Conspiracy to Distribute Methamphetamine and Jose Alonso Garcia, age 38, of Fort Smith, was sentenced today to 188 months in federal prison followed by five years of supervised release on one count of Aiding and Abetting Possession with Intent to Distribute Methamphetamine The Honorable Chief Judge P.K. Holmes, III presided over the sentencing hearings in the United States District Court in Fort Smith.
According to court records, in September of 2016, the Drug Enforcement Administration (DEA) learned that methamphetamine was being distributed in the Fort Smith area by Escalante. During the investigation, DEA arranged and conducted multiple controlled purchases of methamphetamine from Escalante. During one of the transactions, Garcia drove Escalante to meet with an undercover agent and assisted with the transaction. The substance purchased was sent to the DEA South Central Laboratory for testing. The lab determined that the substance contained actual methamphetamine.
Escalante and Garcia were indicted by a federal grand jury in March 2018. Escalante entered a guilty plea in May 2018 and Garcia entered a guilty plea in April 2018.
This case was investigated by the Drug Enforcement Administration (DEA), Alcohol Tobacco and Firearms (ATF), Crawford County Sheriff’s Office, Fort Smith Police Department, Barling Police Department, Sebastian County Sheriff’s Office, Van Buren Police Department and the 12th/21st Judicial District Drug Task Force. Assistant United States Attorney Candace Taylor prosecuted the case for the United States.
Eccelsia College President Sentenced to 3 Years in Federal Prison for Wire FraudRead the Press Release
Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas announced today that Oren Paris III., age 50, of Springdale, Arkansas, was sentenced today to 36 months in federal prison followed by three years of supervised release. Paris was also ordered to pay $621,500.00 in restitution, on one count of honest services wire fraud. Paris was ordered to surrender to the U.S. Marshals Service to begin serving his sentence on October 10, 2018. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to the evidence presented at trial, Jonathan Woods, 41, of Springdale, served as an Arkansas State Senator from 2013 to 2017. Between approximately 2013 and approximately 2015, Woods used his official position as a senator to appropriate and direct government money, known as General Improvement Funds (GIF), to two non-profit entities by, among other things, directly authorizing GIF disbursements and advising other Arkansas legislators – including former State Representative Micah Neal, 43, of Springdale, Arkansas, to contribute GIF to the non-profits. Specifically, Woods and Neal authorized and directed the Northwest Arkansas Economic Development District, which was responsible for disbursing the GIF, to award a total of approximately $600,000 in GIF money to the two non-profit entities. The evidence further showed that Woods and Neal received bribes from officials at both non-profits, including Paris, who was the president of a college. Woods initially facilitated $200,000 of GIF money to the college and later, together with Neal, directed another $200,000 to the college, all in exchange for kickbacks. To pay and conceal the kickbacks to Woods and Neal, Paris paid a portion of the GIF to Shelton’s consulting company. Shelton then kept a portion of the money and paid the other portion to Woods and Neal. Paris also bribed Woods by hiring Woods’s friend to an administrative position at the college.
For his part in the scheme, Neal pleaded guilty on Jan. 4, 2017, before U.S. District Judge Timothy L. Brooks of the Western District of Arkansas to one count of conspiracy to commit honest services fraud. Paris pleaded guilty on April 5, 2018, before Judge Brooks to one count of honest services wire fraud. Sentencings for Neal will be later this month. Woods was sentenced September 5, 2018 to 220 months in federal prison and Shelton was sentenced September 6, 2018 to 72 months in federal prison.
The FBI and IRS investigated the case. First Assistant U.S. Attorney Kenneth Elser, Assistant U.S. Attorneys Kyra Jenner and Aaron Jennen of the Western District of Arkansas and Trial Attorney Sean F. Mulryne of the Criminal Division’s Public Integrity Section prosecuted the case.
Former Arkansas State Senator Sentenced to 220 Months in Federal Prison for Wire Fraud, Mail Fraud and MoneyRead the Press Release
Fayetteville, Arkansas – Former Arkansas State Senator Johnathan Woods was sentenced today to 220 months in prison for organizing and leading a bribery scheme in which state funds were directed to non-profit entities in exchange for kickbacks, many of which were funneled through a consultant’s business, announced U.S. Attorney Duane “DAK” Kees for the Western District of Arkansas, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, FBI Special Agent in Charge Diane Upchurch and IRS Special Agent in Charge Tamera Cantu.
On May 3 2018, a jury found Jonathan E. Woods, 41, of Springdale, Arkansas, guilty of 15 counts, including conspiracy, honest services wire and mail fraud, and money laundering. In addition to his prison sentence, U.S. District Judge Timothy L. Brooks of the Western District of Arkansas sentenced Woods to serve three years of supervised release and ordered Woods to pay $1,621,500.00 in restitution.
“Today’s sentence is the result of very hard work by the assigned Assistant United States Attorneys and the special agents from the IRS and the FBI”, said United States Attorney DAK Kees. “We both respect and appreciate the judgment of the Court and the sentence that Judge Brooks ordered today. This sentence should send a message to the people who would abuse the trust of Arkansas voters and citizens. It should serve as a serious warning to those who would intentionally steal money from taxpayers and use their elected office to both commit and conceal their crimes. As I stated after the jury trial concluded, my office, along with the Criminal Division from the Department of Justice, will continue to investigate, pursue and prosecute public corruption cases in Arkansas in order to ensure the fairness and justice that the people of Arkansas deserve.”
“Jonathan Woods abused his position as an Arkansas State Senator and betrayed the public trust by taking bribes and kickbacks,” said Assistant Attorney General Benczkowski. “This conviction demonstrates the commitment of the Department of Justice and our federal partners to investigate and prosecute public officials who misuse their authority to benefit themselves at the expense of the citizens they pledged to serve.”
"Jonathan Woods violated the public's trust and misused his authority for the purpose of lining his own pockets," said Special Agent in Charge Diane Upchurch with the Little Rock FBI Field Office, "We are proud of the commitment of our partners at the United States Attorney's Office of the Western Division, the IRS, and the Criminal Division's Public Integrity Section."
According to the evidence presented at trial, Woods served as an Arkansas State Senator from 2013 to 2017. Between approximately 2013 and approximately 2015, Woods used his official position as a senator to appropriate and direct government money, known as General Improvement Funds (GIF), to two non-profit entities by, among other things, directly authorizing GIF disbursements and advising other Arkansas legislators – including former State Representative Micah Neal, 43, of Springdale, Arkansas – to contribute GIF to the non-profits. Specifically, Woods and Neal authorized and directed the Northwest Arkansas Economic Development District, which was responsible for disbursing the GIF, to award a total of approximately $600,000 in GIF money to the two non-profit entities. The evidence further showed that Woods and Neal received bribes from officials at both non-profits, including Oren Paris III, 50, of Springdale, Arkansas, who was the president of a college. Woods initially facilitated $200,000 of GIF money to the college and later, together with Neal, directed another $200,000 to the college, all in exchange for kickbacks. To pay and conceal the kickbacks to Woods and Neal, Paris paid a portion of the GIF to a consulting company controlled by Randell G. Shelton Jr., 39, of Alma, Arkansas. Shelton then kept a portion of the money and paid the other portion to Woods and Neal. Paris also bribed Woods by hiring Woods’s friend to an administrative position at the college.
Shelton also was found guilty by a jury on May 3. He was convicted of 12 counts, including conspiracy and honest services wire and mail fraud, and is scheduled to be sentenced on Sept. 6. Paris pleaded guilty on April 5, before Judge Brooks to one count of honest services wire fraud, and he is scheduled to be sentenced on Sept. 12. Neal pleaded guilty on Jan. 4, 2017, before Judge Brooks to one count of conspiracy to commit honest services fraud, and he is scheduled to be sentenced on Sept. 13.
The FBI and IRS Criminal Investigation investigated the case. Trial Attorney Sean F. Mulryne of the Criminal Division’s Public Integrity Section and First Assistant U.S. Attorney Kenneth Elser and Assistant U.S. Attorneys Kyra Jenner and Aaron Jennen of the Western District of Arkansas prosecuted the case.
Former Arkansas State Senator Sentenced to More Than 18 Years in Prison for Bribery SchemeRead the Press Release
A former Arkansas State Senator was sentenced today to 220 months in prison for organizing and leading a bribery scheme in which state funds were directed to non-profit entities in exchange for kickbacks, many of which were funneled through a consultant’s business, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Duane “DAK” Kees for the Western District of Arkansas.
On May 3, a jury found Jonathan E. Woods, 41, of Springdale, Arkansas, guilty of 15 counts, including conspiracy, honest services wire and mail fraud, and money laundering. In addition to his prison sentence, U.S. District Judge Timothy L. Brooks of the Western District of Arkansas sentenced Woods to serve three years of supervised release and ordered Woods to pay restitution in the amount of $1,621,500 to the State of Arkansas and two economic development districts including the Northwest Arkansas Economic Development District and forfeit $1,097,005.
“Jonathan Woods abused his position as an Arkansas State Senator and betrayed the public trust by taking bribes and kickbacks,” said Assistant Attorney General Benczkowski. “This conviction demonstrates the commitment of the Department of Justice and our federal partners to investigate and prosecute public officials who misuse their authority to benefit themselves at the expense of the citizens they pledged to serve.”
“Today’s sentence is the result of very hard work by the assigned Assistant U.S. Attorneys and the special agents from the IRS and the FBI,” said U.S. Attorney Kees. “We both respect and appreciate the judgment of the Court and the sentence that Judge Brooks ordered today. This sentence should send a message to the people who would abuse the trust of Arkansas voters and citizens. It should serve as a serious warning to those who would intentionally steal money from taxpayers and use their elected office to both commit and conceal their crimes. As I stated after the jury trial concluded, my office, along with the Criminal Division from the Department of Justice, will continue to investigate, pursue and prosecute public corruption cases in Arkansas in order to ensure the fairness and justice that the people of Arkansas deserve.”
According to the evidence presented at trial, Woods served as an Arkansas State Senator from 2013 to 2017. Between approximately 2013 and approximately 2015, Woods used his official position as a senator to appropriate and direct government money, known as General Improvement Funds (GIF), to two non-profit entities by, among other things, directly authorizing GIF disbursements and advising other Arkansas legislators – including former State Representative Micah Neal, 43, of Springdale, Arkansas – to contribute GIF to the non-profits. Specifically, Woods and Neal authorized and directed the Northwest Arkansas Economic Development District, which was responsible for disbursing the GIF, to award a total of approximately $600,000 in GIF money to the two non-profit entities. The evidence further showed that Woods and Neal received bribes from officials at both non-profits, including Oren Paris III, 50, of Springdale, Arkansas, who was the president of a college. Woods initially facilitated $200,000 of GIF money to the college and later, together with Neal, directed another $200,000 to the college, all in exchange for kickbacks. To pay and conceal the kickbacks to Woods and Neal, Paris paid a portion of the GIF to a consulting company controlled by Randell G. Shelton Jr., 39, of Alma, Arkansas. Shelton then kept a portion of the money and paid the other portion to Woods and Neal. Paris also bribed Woods by hiring Woods’s friend to an administrative position at the college.
Shelton also was found guilty by a jury on May 3. He was convicted of 12 counts, including conspiracy and honest services wire and mail fraud, and is scheduled to be sentenced on Sept. 6. Paris pleaded guilty on April 5, before Judge Brooks to one count of honest services wire fraud, and he is scheduled to be sentenced on Sept. 12. Neal pleaded guilty on Jan. 4, 2017, before Judge Brooks to one count of conspiracy to commit honest services fraud, and he is scheduled to be sentenced on Sept. 13.
The FBI and IRS Criminal Investigation investigated the case. Trial Attorney Sean F. Mulryne of the Criminal Division’s Public Integrity Section and First Assistant U.S. Attorney Kenneth Elser and Assistant U.S. Attorneys Kyra Jenner and Aaron Jennen of the Western District of Arkansas prosecuted the case.
South Arkansas Men Sentenced to A Total of over 6 Years in Federal Prison for Wire Fraud and Money LaunderingRead the Press Release
El Dorado, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced today that Lawrence Shelton, age 69, of El Dorado, Arkansas was sentenced on July 30, 2018 to 36 months in federal prison followed by three years of supervised release, on one count of conspiracy to commit wire fraud and one count of money laundering; Ronald Murphy, age 70, of El Dorado, Arkansas was sentenced today to 18 months in federal prison followed by three years of supervised release, on one count of conspiracy to commit wire fraud and one count of structuring transactions to avoid reporting requirements; and Domanique Robinson, age 40, of Camden, Arkansas was sentenced today to 24 months in federal prison followed by three years of supervised release, on one count of conspiracy to commit wire fraud and one count of structuring transactions to evade reporting requirements. The defendants were additionally ordered to pay $310,000.00 total in restitution. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in El Dorado.
According to court records, Shelton was the Chief Executive Officer, director, and founder of 2ND CHANCE, a nonprofit organization that focused on “at risk” children from low-income households by helping to make them self-reliant and productive citizens through education and mentoring. 2nd CHANCE received federal funding from the United States Department of Agriculture (USDA) through a federal grant and was managed by Arkansas Department of Human Services (DHS). A joint investigation by the Federal Bureau of Investigation (FBI) and the Internal Revenue Service - Criminal Investigation Division (IRS) revealed that fraudulent claims were electronically submitted to DHS by 2ND CHANCE program director, Robinson, regarding the number of children attending the program. Robinson was responsible for receiving attendance sheets from each 2nd CHANCE location and submitting claims with attendance numbers to DHS for funding/reimbursement. Murphy was the owner of South West Economic Development Association (SWEDA). SWEDA served as a food vendor for the 2nd Chance afterschool and summer program from late 2011 until June 2014. Shelton, Robinson, and Murphy, conspired to falsify the claims to DHS by inflating or completely fabricating the number of children in attendance. The fraudulent claims resulted in overpayments made by DHS that were direct deposited into 2nd Chance bank accounts by interstate wire communications. Shelton, Robinson, Murphy, and others personally benefited from the excess funds. The total overpayments made by DHS exceeded $250,000 during the period of fraudulent activity.
Robinson and Murphy were indicted by a federal grand jury in 2015. Shelton was indicted by a federal grand jury in January 2016. Murphy pled guilty in January 2016. Shelton pled guilty in April 2017. Robinson pled guilty in January 2016.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service - Criminal Investigation Division. Assistant United States Attorney Benjamin Wulff prosecuted the case for the United States.
Hot Springs Man Sentenced to over 33 Years in Federal Prison for Kidnapping and Aggravated Sexual Abuse by ForceRead the Press Release
Hot Springs, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced today that Lynn Terrance Breckenridge II, age 28, of Hot Springs, Arkansas was sentenced today to 405 months in federal prison followed by a term of supervised release for the remainder of his life on one count each of Kidnapping and Aggravated Sexual Abuse by Force. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in Hot Springs.
According to court records, Breckenridge spoke to a Hot Springs woman who was walking her dog in the early morning hours of October 5, 2014, and offered her a ride under the guise that he and the woman had a mutual acquaintance and that Breckenridge would drive the woman and her dog back to the place where she was living. The woman accepted the ride and she and her dog got inside Breckenridge’s car.
Instead of taking the woman where Breckenridge had promised, he confined the woman inside his car and drove her and her dog throughout Hot Springs, preventing her and her dog from getting out of the car. Eventually, Breckenridge drove the woman and her dog to West Mountain, which is part of Hot Springs National Park and under exclusive federal jurisdiction. There, Breckenridge threw the woman’s dog out of the car, sexually assaulted the woman, threatened to kill her and continued to hold her against her will.
Sometime after the woman had been restrained inside the car and sexually assaulted, she was able to escape from Breckenridge’s vehicle. She ran and hid from Breckenridge until she saw a passing taxi. The woman flagged down the taxi and was later taken to the Hot Springs National Park Medical Center for treatment and evidence collection. Subsequent forensic examination of evidence obtained from the woman at the Hot Springs National Park Medical Center revealed bodily fluids that matched Breckenridge’s DNA.
Breckenridge was indicted in July 2015 on federal charges and plead guilty in February 2017.
This case was investigated by the Federal Bureau of Investigation, the Hot Springs Police Department and the National Park Service. Assistant United States Attorneys Kyra Jenner and Candace Taylor prosecuted the case for the United States.
Former Executive Director of Non-Profit Pleads Guilty to Conspiracy with Unnamed State Senator and Convicted LobbyistRead the Press Release
A Former Executive Director of a non-profit pleaded guilty today to conspiring to unlawfully divert over $380,000 from South Arkansas Youth Services (SAYS), without the authority of the non-profit’s Board of Directors. According to plea documents, the scheme involved steering the non-profit’s funds to an Arkansas state senator and the lobbying firm of convicted lobbyist Milton “Rusty” Cranford, in exchange for the state senator agreeing to influence Arkansas officials regarding state contracts.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Duane (DAK) Kees for the Western District of Arkansas made the announcement.
Jerry Walsh, 72, of Magnolia, Arkansas, who served as the Executive Director of SAYS pleaded guilty before U.S. District Judge Susan O. Hickey to an information charging him with conspiracy to misapply the non-profit’s funds without authority from the Board of Directors.
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 Rusty Cranford and an unnamed Arkansas state senator in exchange for the state senator’s influence in protecting the non-profit’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 payment was to obtain the senator’s assistance in preserving the contracts by influencing DHS and DYS officials. According to the plea, the amount paid to the senator was negotiated by convicted lobbyist Rusty Cranford and amounted to over $120,000.
Additionally, as part of the agreement, Walsh locked SAYS into a more expensive contract with Cranford’s lobbying firms and employed a relative of Cranford who would have a “no-show” job with SAYS. Between the new contract with the Cranford lobbying firm and the payment for the no-show job, the non-profit paid out an additional $262,000 in diverted funds. As part of his plea, Walsh admitted that these payments and those to the state senator were not authorized by the SAYS Board of Directors.
“Jerry Walsh diverted hundreds of thousands of dollars intended to help vulnerable children in southern Arkansas as a part of a corrupt scheme to influence the award of state contracts,” said Assistant Attorney General Benczkowski. “Walsh’s actions ultimately risked destroying the non-profit he helped lead and undermining the public’s confidence in its elected officials. The Criminal Division and our law enforcement partners are committed to protecting the integrity of charitable programs, rooting out corruption, and ensuring that individuals like Walsh are held accountable for their actions.”
“This plea exposes the depths to which ‘pay to play’ politics has corrupted a non-profit organization which was formed with the best of intentions, to help children,” said U.S. Attorney Kees. “Unfortunately, there are many victims in a scheme like this. The people of this state were deprived of the uncorrupted functioning of their government agencies, the non-profit was stripped of funds, and now that the non-profit has been shuttered, the community is deprived of a non-profit dedicated to providing services to their most vulnerable children, those who are incarcerated and in state custody. I look forward to a day when all politicians exercising influence do so based upon the best interests of the children in their communities and not on who is paying them for no-show jobs.”
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. Assistant U.S. Attorney Ben Wulff of the Western District of Arkansas and Trial Attorney Marco A. Palmieri of the Criminal Division’s Public Integrity Section 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 of the Department of Justice, the Eastern District of Arkansas, Western District of Arkansas, and the Western District of Missouri.
Former Executive Director of Non-Profit Pleads Guilty to Conspiracy with Unnamed State Senator and Convicted LobbyistRead the Press Release
El Dorado, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Jerry Kennedy Walsh, age 72, of Magnolia, Arkansas pleaded guilty today to conspiring to misapply over $380,000 from South Arkansas Youth Services without the authority of the non-profit’s Board of Directors. According to plea documents, the scheme involved steering the non-profit’s funds to an Arkansas state senator, to the lobbying firm of convicted lobbyist Milton “Rusty” Cranford, and to a relative of Cranford.
U.S. Attorney Duane (DAK) Kees for the Western District of Arkansas and Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division made the announcement.
Walsh of Magnolia, Arkansas, who served as the Executive Director of South Arkansas Youth Services (SAYS) pleaded guilty before U.S. District Judge Susan O. Hickey to an information charging him with conspiracy to misapply the non-profit’s funds without authority from the Board of Directors.
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 Rusty Cranford and an unnamed Arkansas state senator in exchange for the state senator’s influence in protecting the non-profit’s state contracts with DHS and 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 payment was to obtain the senator’s assistance in preserving the contracts in his official capacity. According to the plea, the amount paid to the senator was negotiated by convicted lobbyist Rusty Cranford and amounted to over $120,000.
Additionally, as part of the agreement, Walsh was to lock SAYS into a more expensive contract with Cranford’s lobbying firms and employ a relative of Cranford who would have a “no-show” job with SAYS. Between the new contract with the Cranford lobbying firm and the payment for the no-show job, the non-profit paid out an additional $262,000. As part of his plea, Walsh admitted that these payments and those to the state senator were not authorized by the SAYS Board of Directors.
“This plea exposes the depths to which ‘pay to play’ politics has corrupted a non-profit organization which was formed with the best of intentions, to help children,” said U.S. Attorney Kees. “Unfortunately, there are many victims in a scheme like this. The people of this state were deprived of the uncorrupted functioning of their government agencies, the non-profit was stripped of funds, and now that the non-profit has been shuttered, the community is deprived of a non-profit dedicated to providing services to their most vulnerable children, those who are incarcerated and in state custody. I look forward to a day when all politicians exercising influence do so based upon the best interests of the children in their communities and not on who is paying them for no-show jobs.”
“Jerry Walsh diverted hundreds of thousands of dollars intended to help vulnerable children in southern Arkansas as a part of a corrupt scheme to influence the award of state contracts,” said Assistant Attorney General Benczkowski. “Walsh’s actions ultimately risked destroying the non-profit he helped lead and undermining the public’s confidence in its elected officials. The Criminal Division and our law enforcement partners are committed to protecting the integrity of charitable programs, rooting out corruption, and ensuring that individuals like Walsh are held accountable for their actions.”
The FBI investigated this case along with the assistance of the Columbia County Sheriff’s Office (Sheriff Mike Loe) and the 13th Judicial District of Arkansas Prosecuting Attorney’s Office (Prosecuting Attorney John Shepherd). Assistant United States Attorney Ben Wulff of the Western District of Arkansas and Trial Attorney Marco A. Palmieri of the Criminal Division’s Public Integrity Section 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 of the Department of Justice, the Eastern District of Arkansas, Western District of Arkansas, and the Western District of Missouri.
Northwest Arkansas Man Sentenced to over 5 Years in Federal Prison for Money Laundering and Filing A False Tax ReturnRead the Press Release
Fayetteville, AR – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced today that Darrell Rosen, age 59, formerly of Fayetteville, Arkansas, was sentenced yesterday to 63 months in federal Prison followed by three years supervised release and ordered to pay a total of $1,851,990.05 in restitution for one count of Money Laundering and one count of Filing a False Income Tax Return. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, from October 2010 through August 2014, Rosen solicited individuals in Arkansas, Texas, and elsewhere to invest in a business centered on training dogs. Rosen represented that he had contracts with governmental entities as well as some private companies that would allow him to train and then sell dogs to the government for profit. Rosen intentionally made false promises that he would invest the money in the dog training business when, in fact, he used much of the money on his personal expenses. In addition, Rosen caused his 2013 Federal Income Tax Return to be filed with false information by both failing to report income he received from investors and for claiming Schedule A deductions for which he was not entitled.
Rosen was indicted by a federal grand jury in April 2017 and entered a guilty plea in January 2018.
The investigation was conducted by IRS Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney Brice R. White prosecuted the case for the United States.
Fayetteville Man Sentenced to 10 Years in Federal Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Cornelius Cox, age 33, of Fayetteville, Arkansas was sentenced today to 120 months in federal prison followed by three years of supervised release and was ordered to pay a $2,400.00 fine on one count of Possession with Intent to Distribute Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
In late July through early August of 2017, the 4th Judicial Drug Task Force conducted several controlled buys of methamphetamine from Cox, within the Western District of Arkansas, Fayetteville Division.
On August 12, 2017, Cox was located by detectives driving his vehicle and he was subsequently stopped and arrested. During a search incident to his arrest, detectives located over 500 grams of a mixture or substance, which contained methamphetamine. In addition, detectives located two sets of digital scales in the vehicle. During a subsequent search of his residence, detectives located a loaded Ruger pistol as well as scales and baggies.
Cox was indicted in September 2017 and pleaded guilty in March 2018.
This case was investigated by the 4th Judicial Drug Task Force (DTF). Assistant United States Attorney David Harris prosecuted this case for the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
Fayetteville Man Sentenced to over 3 Years in Federal Prison for Embezzlement of Government Funds and Tax FraudRead the Press Release
Fayetteville, Arkansas –Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that James Lewis Story (Jimmy), age 57 of Fayetteville, Arkansas, was sentenced today to 46 months in federal prison followed by three years of supervised release, and ordered to pay $1,282,966.00 in restitution to the City of Farmington Arkansas and $371,956.00 in restitution to the IRS on one count of Theft Concerning Programs that Receive Federal Funds and one count of Filing a False Income Tax Return. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, Story worked for the City of Farmington as the District Court Clerk from 1995 to 2016. Starting in at least January 2009, Story was the sole employee responsible for preparing and making deposits, reviewing bank statements and performing reconciliations, entering receipt information in the District Court’s case management system(System), and posting transactions to the financial accounting system. District Court offenders were required to pay their fines at the Farmington Court Clerk’s Office. Fines collected by City of Farmington staff were given to Story for data entry into the System and for deposit into the District Court bank account. Beginning in or about January 2009, Story made five types of fraudulent adjustments in the System to reduce the monetary balance due from defendants and conceal the funds not deposited. As the only employee with authorized security access to the system, Story used the fraudulent adjustments to fabricate reasons that fines, costs, and fees collected were not entered into the System. The fraudulent adjustments performed by Story included adjustments that indicated the District Court Judge dismissed the fines, fees, and costs owed by the offenders, adjustments that community service was served in lieu of payment of fines, fees, and costs, administrative activity adjustments, deleted or voided cases, and deletion of court automation fees. During the course of the investigation, agents identified individuals who paid their fines in cash and whose records were changed in the System to indicate that there was no court-ordered fine. In each case, Story altered the records, stole the cash, and used it for his own personal benefit.
Story was named in a two-count information and pleaded guilty in November 2017.
The investigation was conducted by the Federal Bureau of Investigation, IRS Criminal Investigations and the Arkansas Legislative Audit. Assistant United States Attorney’s Brice R. White and Clay Fowlkes prosecuted the case for the United States.
Arkansas Man Sentenced to over 9 Years in Federal Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
Hot Springs, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Issac Johnson, age 25, of Royal, Arkansas was sentenced today to 110 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in Hot Springs.
According to court records, In February of 2016, law enforcement officers arranged and conducted a controlled delivery of methamphetamine between an undercover officer and Johnson in the Western District of Arkansas. After the controlled delivery, Johnson was arrested and taken into custody. During the search of his person, officers located a .380 caliber pistol. The substance delivered was sent to the Arkansas State Crime lab where it tested positive for methamphetamine, with an actual weight of 178 grams.
Johnson was indicted in October 2016 and pleaded guilty in November 2017.
This case was investigated by the Arkansas State Police and the Hot Springs Police Department. Assistant United States Attorney David Harris prosecuted this case for the United States.
Lonsdale Man Sentenced to over 6 Years in Federal Prison for Felon in Possession of A Firearm ViolationRead the Press Release
Hot Springs, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Steven Nelson a.k.a Steven Varnes, age 40, of Lonsdale, was sentenced yesterday to 78 months in federal prison followed by three years of supervised release on one count of Receiving and Possessing an Unregistered Firearm. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in Hot Springs.
According to court records, in November 2016, officers with the Glenwood Police Department were dispatched to the scene of a two vehicle accident. One of the drivers was attempting to identify himself using a false name and birthdate with an expired identification card. Officers became suspicious and confronted the individual with this information, and the individual was identified as Nelson. Further investigation revealed that Nelson’s driver’s license was suspended and that he was a convicted felon. Nelson was then placed under arrest.
A search of Nelson revealed a live 12-gauge shotgun shell in his pocket and a search of the vehicle he operated revealed twenty-one (21) 12-gauge shotgun shells, and a short-barreled, 12-gauge shotgun. A subsequent search of the National Firearm Registration and Transfer record revealed that Nelson’s short-barreled shotgun was not registered to Nelson in violation of federal law.
Nelson was indicted by a federal grand jury in January 2017 and entered a guilty plea in September 2017.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, and the Glenwood Police Department. Assistant United States Attorney Amanda Donat prosecuted the case for the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
Drug Traffickers Sentenced to 30 Years in Federal PrisonRead the Press Release
Hot Springs, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced today that Shaun Booth, age 30, of Hot Springs, Arkansas was sentenced on June 26, 2018 to 90 months in federal prison followed by three years of supervised release, on one count of Aiding and Abetting the Possession with Intent to Distribute Methamphetamine, Steven Taylor, age 36, of Maud, Texas was sentenced today to 151 months in federal prison followed by three years of supervised release, on one count of Conspiracy to Distribute Methamphetamine and Kelsey Williams, age 24, of Olive Branch, Mississippi was sentenced on June 25, 2018 to 120 months in federal prison followed by three years of supervised release, on one count of Conspiracy to Distribute Methamphetamine. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in Hot Springs.
According to court records, on June 7, 2016, officers with the 18th East Judicial Drug Taskforce in Garland County executed a state search warrant at the Economy Inn located in Hot Springs, which is within the Western District of Arkansas. Upon entry into the room, officers made contact with co-conspirator, Booth, who was the lone occupant of the room and in the far bed of the room. Booth had a valid warrant for his arrest and was placed in custody. During execution of the warrant, officers located a large amount of methamphetamine, as well as numerous items of drug paraphernalia. During the investigation agents learned that the methamphetamine had been brought in from Texas by Taylor and Williams and dropped off at the Economy Inn for further distribution by Booth. Investigators also learned that Taylor had the room rented in his name and had a key to the room.
The methamphetamine seized in this case was sent to the Arkansas State Crime lab where it tested positive for methamphetamine.
Booth, Taylor and Williams were all indicted by a federal grand jury in October 2016 and pled guilty in 2017.
This case was investigated by the 18th East Judicial Drug Taskforce. Assistant United States Attorney David Harris prosecuted the case for the United States.
Amity Woman Sentenced to over 7 Years in Federal Prison for Drug TraffickingRead the Press Release
Hot Springs, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Leslie Fryar, age 42, of Amity, Arkansas, was sentenced today to 87 months in federal prison followed by three years of supervised release on one count of Possession with Intent to Distribute Methamphetamine. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in Hot Springs.
According to court records, during October 2016, investigators with the 18th East Judicial Drug Task Force, Arkansas State Police (ASP), and Department of Homeland Security began investigating Fryar, for the distribution of methamphetamine within Garland County, Arkansas. During March 2017, Arkansas State Police conducted a traffic stop on a vehicle and made contact with the driver, who was identified as Fryar. Fryar consented to a search of her vehicle and law enforcement found a plastic bag in the glove compartment which contained approximately 115.5 grams of suspected methamphetamine. Fryar was subsequently arrested. The suspected methamphetamine was submitted to the Arkansas State Crime Laboratory for analysis, and it was determined to be 109.94 grams of actual methamphetamine.
Fryar was indicted by a federal grand jury in April 2017 and entered a guilty plea in November 2017.
This case was investigated by the 18th East Judicial Drug Task Force, the Arkansas State Police, and the Department of Homeland Security. Assistant United States Attorney David Harris prosecuted the case for the United States.
Texas Drug Traffickers Sentenced to 19 Years in Federal Prison for Conspiring to Distribute Methamphetamine in the Western District of ArkansasRead the Press Release
Texarkana, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced today that three Texarkana, Texas methamphetamine traffickers were sentenced for Conspiracy to Distribute Methamphetamine. Demetrius Allah Stanley aka “Cuzo,” age 42, of Texarkana, Texas was sentenced on June 20, 2018 to 96 months in federal prison followed by 3 years of supervised release, Amy Darlene Bryant, age 39, of Texarkana, Texas, was sentenced on June 20, 2018 to 21 months in federal prison followed by 3 years of supervised release, and James Ruble Little, age 32, originally of Fouke, Arkansas was sentenced today to 120 months in federal prison followed by 3 years of supervised release. The Honorable Susan O. Hickey presided over the sentencing hearings in the United States District Court in Texarkana.
According to court records, in January of 2016, investigators working with the Texas Department of Public Safety ("TX DPS") began an investigation into a local methamphetamine trafficking group operating on the Texas side of Texarkana in Bowie County. During that investigation, TX DPS investigators utilized a confidential informant (CI) to arrange for multiple purchases of methamphetamine from James Little ("Little") from his home in Texarkana, Texas. During one of the transactions, Amy Bryant was seen driving from her Texas home to Little’s place of work at a tire shop in Texas. Bryant picked up Little and transported him in her vehicle to an apartment complex in Texarkana, Texas, where they then picked up, Demetrius Stanley ("Stanley").
Law Enforcement then followed Bryant as she drove Stanley and Little to the home of a known methamphetamine distributor at a residence on the Arkansas side of Texarkana. While at that home, Stanley exited the vehicle and met with his source of methamphetamine and then rejoined, Little and Bryant. After the meeting, Stanley, Little, and Bryant all drove to an arranged meet location. Once there Bryant dropped off Little. Little then provided the CI an ounce of methamphetamine. The suspected methamphetamine was sent to the Arkansas State Crime Laboratory where it was determined to be a total of 27.61 grams of methamphetamine.
On October 19, 2016, Little’s bond was revoked in his federal case after he attempted suicide after learning that he was under investigation for the sexual assault of minors. On May 21, 2018, Little pled guilty to state charges of Rape in Miller County Circuit Court in Miller County, Arkansas. He is scheduled to be sentenced on that offense on June 26, 2018.
Stanley, Bryant and Little were all indicted by a federal grand jury in August 2016 and pled guilty in 2017.
This case was investigated by Texas Department of Public Safety (TXDPS). Assistant United States Attorney Ben Wulff prosecuted the case for the United States.
Texarkana Man Sentenced to over 12 Years in Federal Prison for Firearms ViolationRead the Press Release
Texarkana, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Keith Morgan Block, age 51, of Texarkana, Texas was sentenced yesterday to 155 months in federal prison followed by three years of supervised release on one count of Felon in Possession of a Firearm. The Honorable Susan O. Hickey, United States District Judge, presided over the sentencing hearing in Texarkana.
According to court records, in April 2016, law enforcement officers stopped a vehicle in Texarkana for failing to use a turn signal. The vehicle contained two occupants, a driver and a passenger, later identified as Block. The driver of the vehicle was arrested on an outstanding unrelated warrant. An officer then attempted to search Block for officer safety purposes, but Block fled on foot. During the chase, a firearm fell from Block’s clothing. Block was apprehended after a brief chase in the parking lot and he was taken into custody.
A federal grand jury indicted Block in April 2016, and he pled guilty in July 2017.
This case was investigated by Texarkana Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorney Graham Jones prosecuted the case for the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.