Western District of Arkansas

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.

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. 

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. 

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, 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, 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.

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.

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.

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.

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.

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, 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.

Texarkana, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Christopher Whistle, age 40, of Texarkana, Arkansas, was sentenced today to 100 months in federal prison followed by three years of supervised release on one count of Distribution of Methamphetamine. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in Texarkana.

According to court records, in December 2015, agents with the Bi-State Narcotics Task Force (BSNTF) and the Federal Bureau of Investigation (FBI) began an investigation into methamphetamine distribution in the Texarkana area. This investigation allowed law enforcement to identify Whistle as a distributer of methamphetamine in the area. After learning this, agents with the BSNTF and the FBI conducted a controlled purchase of methamphetamine from Whistle. The methamphetamine was sent to the Arkansas State Crime Laboratory for analysis. The substance was determined 11.57 grams of actual methamphetamine. 

Whistle was indicted by a federal grand jury in December 2015, and entered a guilty plea to distribution of methamphetamine in December 2017.

This case was investigated by Bi-State Narcotics Task Force and the Federal Bureau of Investigation. Assistant United States Attorney Brice White prosecuted the case for the United States.

Texarkana, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Nathan Karl Thomas, age 25, of Lockesburg, Arkansas was sentenced today to 360 months in federal prison followed by ten years of supervised release on two counts of Receipt of Child Pornography. Thomas was also ordered to pay $3,163.96 in restitution. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in Texarkana.

According to court records, the York Regional Police Special Victims Unit in Canada initiated an investigation in 2014 of the distribution of child pornography, based on information that a Canadian citizen had uploaded to his computer images of minors engaged in sexually explicit conduct. Law enforcement officers in Canada learned that the images received by the Canadian citizen were sent from an internet protocol (IP) address associated with a residence in Texarkana, Texas.  

Federal law enforcement officials in Texas identified the user of the IP address that sent the contraband images to the Canadian citizen. In December 2014, a search warrant was executed at Thomas’s residence in Lockesburg, Arkansas.  Thomas’s cell phone and other electronic communication devices were seized pursuant to the search warrant and examined. The forensic examination of Thomas’s phone resulted in the recovery of Kik Messenger chat logs between Thomas and a minor female that contained sexually explicit conversations as well as photographs of the minor female engaged in sexual poses. 

In addition to the images recovered from Thomas’s phone of the minor female engaged in sexually explicit conduct, forensic examiners discovered on Thomas’s cell phone a video depicting an adult female sexually abusing a two-year-old male. Law enforcement officers were able to identify the adult female as Haidy Branson, a Texas resident.  Branson told law enforcement officers that she produced the video and sent it via the internet to Thomas at his request. Branson was prosecuted in the Eastern District of Texas for her production of the video containing images of the sexual abuse of the two-year-old child. Branson is serving a 21-year sentence in the federal Bureau of Prisons. 

Thomas plead to an information in March of 2016.

This case was investigated by the Texarkana Child Advocacy Center, National Center for Missing and Exploited Children, the Arkansas State Police Cybercrimes Unit, the Department of Homeland Security, and the Arkansas Internet Crimes Against Children Taskforce. Assistant United States Attorneys Kyra Jenner and Ben Wulff prosecuted the case for the United States.

El Dorado, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Deadrick Lamar Tatum (aka “Toda”), age 26, of Texarkana, was sentenced yesterday, to 54 months in federal prison 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 El Dorado.

According to court records, On November 8, 2016, officers with the Texarkana Arkansas Police Department ("TAPD") were on routine patrol in Texarkana, Arkansas. A TAPD officer noticed a vehicle did not have a license tag and proceeded to stop the vehicle. The driver of the vehicle was Tatum. After being asked for his license and registration, Tatum removed something white from his vehicle, against the instructions of the officer. Tatum then ran away from the officer and a foot pursuit began. While chasing Tatum through the backyards of several Texarkana Arkansas residences, the officer saw Tatum attempting to stuff an item under a shed in one of the backyards. The officer then attempted to arrest Tatum, but he fled on foot once again. After back up arrived, several officers were able to locate and arrest Tatum. TAPD officers backtracked Tatum’s flight path and attempted to locate what was concealed under the shed that Tatum stopped at. They found a Kel-Tec, 9mm pistol, wrapped in a white Cleveland Cavaliers hat. After Tatum’s arrest, FBI Agents interviewed Tatum and spoke to him concerning the firearm seized during his arrest. After initially denying any knowledge of the firearm, Tatum later admitted that he had the firearm for protection and had possessed it since January. He also described the firearm as a Kel-Tec. At the time that Tatum possessed the above referenced firearm, he had been convicted of a felony drug offense in federal court.

Tatum was indicted by a federal grand jury in November 2016 and entered a guilty plea in April 2017.

This case was investigated by Texarkana and the FBI. Assistant United States Attorney Ben Wulff prosecuted the case for the United States.

El Dorado, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced today that Lacortney D. Sanders (aka “Supreme”), age 36, of Hope, Arkansas was sentenced today to 121 months in federal prison followed by five years of supervised release on one count of Distribution of Methamphetamine. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in El Dorado.

According to court records, in November 2013, during the course of an investigation into the distribution of methamphetamine in Hampstead County, Arkansas and elsewhere in the Western District of Arkansas, the FBI and the FBI Task Force identified Sanders as a source of supply of methamphetamine. During the investigation, agents were able to purchase methamphetamine from Sanders utilizing a confidential informant.  The suspected methamphetamine was subsequently submitted to the Arkansas State Crime Laboratory where it was tested and determined to be a mixture or substance containing methamphetamine. 

Sanders was indicted by a federal grand jury in February 2015 and pled guilty in January 2017.

This case was investigated by The FBI and the FBI Task Force.  Assistant United States Attorney Denis Dean prosecuted the case for the United States.

Former Arkansas State Senator Jake C. Files was sentenced to 18 months in prison for orchestrating a scheme to obtain approximately $46,500 in state government funds through fraudulent means and for obtaining approximately $56,700 in loan proceeds, also through fraudulent means.

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Duane A. Kees for the Western District of Arkansas made the announcement.

Files, 46, of Fort Smith, Arkansas who represented Arkansas’s state legislative district No. 8 in the Arkansas State Senate until his resignation in January 2018 following his guilty plea in this matter, was sentenced by Chief U.S. District Court Judge P. K. Holmes III of the Western District of Arkansas.  Judge Holmes ordered Files to serve three years of supervised release following his prison sentence as well as pay restitution in the amount of $83,903.77.  Files was ordered to surrender to the U.S. Marshals Service to begin serving his sentence on Aug. 2.

Files pleaded guilty to wire fraud, money laundering, and bank fraud on Jan. 29.  According to admissions made in connection with his guilty plea, between August 2016 and December 2016, while serving in the Arkansas State Senate, Files used his senate office to obtain government money known as General Improvement Funds (GIF) through fraudulent means and for personal gain.  Specifically, Files authorized and directed the Western Arkansas Economic Development District, which was responsible for administrating the GIF in Files’s legislative district, to award a total of $46,500 in GIF money to the City of Fort Smith.  To secure the release of the GIF money, Files prepared and submitted three fraudulent bids to the Western Arkansas Economic Development District.  Files then instructed an associate to open a bank account under that person’s name to conceal his role as the ultimate beneficiary of the GIF award.  When a first installment of approximately $25,900 was wire transferred from the City of Fort Smith to the associate’s bank account, the associate withdrew approximately $11,900 of the funds in a cashier’s check made payable to FFH Construction, Files’s construction company, and the rest in cash.  The associate then hand-delivered the check and the cash to Files who, in turn, deposited the check into his personal bank account.

Files also admitted to submitting a materially false loan application in November 2016 in connection with a loan application for approximately $56,700 from First Western Bank.

The FBI investigated the case.  Trial Attorney Victor R. Salgado of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Kyra Jenner of the Western District of Arkansas prosecuted the case.

Fort Smith, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas announced today that Jake C. Files, age 46, of Fort Smith, Arkansas, was sentenced today to 18 months in federal prison followed by three years of supervised release. Files was also ordered to pay $83,903.77 in restitution, on one count each of Wire Fraud, Money Laundering and Bank Fraud. Files was ordered to surrender to the U.S. Marshals Service to begin serving his sentence on Aug. 2.  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, between August 2016 and December 2016, while serving in the Arkansas State Senate, Files used his senate office to obtain government money known as General Improvement Funds (GIF) through fraudulent means and for personal gain.  Specifically, Files authorized and directed the Western Arkansas Economic Development District, which was responsible for administrating the GIF in Files’s legislative district, to award a total of $46,500 in GIF money to the City of Fort Smith.  To secure the release of the GIF money, Files prepared and submitted three fraudulent bids to the Western Arkansas Economic Development District.  Files then instructed an associate to open a bank account under her name to conceal his role as the ultimately beneficiary of the GIF award.  When a first installment of approximately $26,900 was wire transferred from the City of Fort Smith to the associate’s bank account, the associate withdrew approximately $11,900 of the funds in a cashier’s check made payable to FFH Construction, Files’s construction company, and the rest in cash.  The associate then hand-delivered the check and the cash to Files who, in turn, deposited the check into his personal bank account.

Files also admitted to submitting a materially false loan application in application in November 2016 as part of a scheme to secure approximately $56,700 from First Western Bank.

Files plead guilty in January 2018.

This case was investigated by the Federal Bureau of Investigations. Assistant United States Attorney’s Kyra Jenner and Aaron Jennen from the Western District of Arkansas and Trial Attorney Victor R. Salgado of the Criminal Division’s Public Integrity Section prosecuted the case for the United States.

El Dorado, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced today that Ian Mitchell Ashcraft, age 28, of Crossett, Arkansas was sentenced yesterday to 72 months in federal prison followed by fifteen years of supervised release on one count each of Receiving Child Pornography and Possession of Child Pornography. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in El Dorado.

According to court records, in October of 2015, the United States Secret Service intercepted an Internet Protocol address which was downloading images of child pornography from the file sharing program Freenet. A subsequent search warrant to internet service provider, returned to the residence of Ian Mitchell Ashcraft of Crossett, Arkansas. On February 8, 2016, law enforcement officers with the Arkansas State Police Cyber Crimes Unit, United States Secret Service and Homeland Security Investigations executed a search warrant of Ashcraft’s residence. Several electronic devices capable of accessing the internet, owned by Ashcraft, were seized by agents.  A subsequent forensic examination of an external hard drive seized from Ashcraft’s bedroom yielded numerous images and videos depicting child pornography.

Ashcraft was indicted in July 2017 on federal charges and plead guilty in September 2017.

This case was investigated by the United States Secret Service (USSS) and the National Center for Missing and Exploited Children (NCMEC).  Assistant United States Attorney Denis Dean prosecuted the case for the United States.

 El Dorado, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced today that Charles “Marty” Permenter, age 56, of El Dorado, Arkansas was sentenced yesterday to 180 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 El Dorado.

According to court records, in February 2016, during an investigation into the methamphetamine distribution in Union County, Arkansas, the FBI and the FBI Task Force identified Permenter as a source of supply of methamphetamine.  During the investigation, investigators were able to purchase methamphetamine from Permenter on multiple occasions, utilizing a confidential informant.  Additionally, information provided by cooperating sources and independent law enforcement investigation showed that Permenter knowingly conspired with co-conspirators and others to distribute more than 1.5 kilograms of methamphetamine in Union County, Arkansas, and other locations within the Western District of Arkansas.  

Permenter was indicted by a federal grand jury in August 2016 and pled guilty in March 2017.

This case was investigated by The FBI and the FBI Task Force.  Assistant United States Attorneys Ben Wulff and Graham Jones prosecuted the case for the United States.

Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Jason Fields, age 39, of Rogers, Arkansas, was sentenced yesterday to 30 years in federal prison without the possibility of parole to be followed by 20 years of supervised release on one count each of Production of 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 October of 2017, law enforcement received a report from the National Center for Missing and Exploited Children that a Northwest Arkansas resident distributed an image of child pornography via the internet application “Chatstep.” During the subsequent investigation, law enforcement obtained a search warrant for Fields, residence. Said warrant was executed on or about November 3, 2017. While on the scene, Fields was read his Miranda rights, and thereafter confirmed that he has sent and received via the internet images of minors engaging in sexually explicit conduct. Fields also told law enforcement that he saved several of such images to a thumb-drive located in his laptop computer. Additionally, Fields stated that he had taken nude images of an approximately 5-year-old male.

A subsequent forensic examination of Fields’ devices revealed over 100 images of minors engaged in sexually explicit conduct. At sentencing, the Government presented the Court with evidence that some of the minors depicted in the images were as young as approximately 2 years of age.

Fields was indicted in December 2017 on federal charges and plead guilty in January 2018.

This case was investigated by the Department of Homeland Security, the Arkansas State Police, and the Northwest Arkansas Internet Crimes Against Children Taskforce, and the Rogers Police Department.  Assistant United States Attorney Dustin Roberts prosecuted the case for the United States.

Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Otis Willt, age 34, of Huntsville, Arkansas, was sentenced today to 10 years 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 June of 2017, Officers with Arkansas Community Corrections conducted a search of the residence occupied by Willt.  During the search, three cellular phones were confiscated as evidence. These phones were subsequently turned over to the Northwest Arkansas Internet Crimes Against Children Taskforce for forensic analysis.

During the subsequent forensic examinations, law enforcement was able to determine that Willt had used the seized phones to search the internet for images of child pornography. Specifically, forensic examiners were able to recover previously used internet search terms related to child pornography, as well as images of child pornography saved in the temporary internet files of the devices.

During the prosecution of the case, the Government presented the Court with evidence that Willt had previously been convicted under the laws of the State of Virginia of an offense related to the Possession of Child Pornography.

Willt was indicted in October 2017 on federal charges and plead guilty in January 2018.

This case was investigated by Arkansas State Probation and Parole, 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, Arkansas –Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Erica L. Keller, age 39 of Elkins, Arkansas, was sentenced today to 37 months in federal prison followed by five years of supervised release, and ordered to pay $354,054.85 in restitution on one count of Theft, Embezzlement, or Misapplication by Bank Officer or Employee. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville. 

According to court records, in October 2013, after an incident concerning unauthorized activity on a customer’s loan account, an investigation and review of all loan accounts managed by Keller was initiated at the bank where she worked as a Loan Officer. Following the initiation of the bank’s internal fraud investigation, agents with the Federal Bureau of Investigation and Federal Deposit Insurance Corporation joined the investigation into Keller’s actions. The investigation revealed that Keller, among other things, took cash withdrawals from customer loan accounts at origination; falsified disbursement tickets to withdraw cash from customer loan accounts, savings accounts, and demand deposit accounts; she originated false loans and received the proceeds; Keller misapplied customer loan payments to conceal fictitious loans; and she withdrew funds from customer’s bank accounts to pay on fictitious or inflated loans.

The investigation was conducted by the Federal Deposit Insurance Corporation and the Federal Bureau of Investigation. Assistant United States Attorney Kim Harris prosecuted the case for the United States.

Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Eliseo Alvarez Jr. age 28, of Bella Vista, Arkansas, was sentenced today to 120 months in federal prison, followed by  five years of supervised release. Alvarez Jr. was also ordered to pay a $1,900.00 fine on one count of Distribution of More than 50 grams 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 July 2017, during the course of an investigation into the distribution of methamphetamine in the Western District of Arkansas, Homeland Security Investigation (HSI) and the Drug Enforcement Administration, (DEA) identified Alvarez Jr. as a methamphetamine source of supply of methamphetamine. During the investigation, agents were able to purchase multiple ounces of methamphetamine from Alvarez Jr. utilizing a confidential informant.  The suspected methamphetamine purchased was sent to the DEA South Central Lab for testing. The results confirmed that the substance was in fact a mixture of substance that contained 169.7 grams of actual methamphetamine.

Alvarez Jr. was indicted by a federal grand jury in December 2017 and pled guilty in February 2018.

This case was investigated by HSI and the DEA.  Assistant United States Attorney Brice White prosecuted the case for the United States.

Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Angelica Avendano , A/K/A Angelica Avendano-Gonzalez age 28, of Avondale, Arizona, was sentenced today to 42 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 hearing in the United States District Court in Fayetteville.

 According to court records, in November 2017, during the course of an investigation into the distribution of methamphetamine in the Western District of Arkansas, the Drug Enforcement Administration, (DEA) identified Avendano as the girlfriend and co-conspirator of Oscar David Zuniga-Chavez, a methamphetamine source of supply for local distributors of methamphetamine. During the investigation, agents sought and obtained a federal search warrant for Avendano’s residence in Peoria, AZ that she shared with Zuniga-Chavez. On December 8, 2016, agents with the DEA Fayetteville Resident Office traveled to Arizona, where they assisted DEA agents and task force officers from Phoenix, Arizona in the execution of the search warrant. Agents made contact with the Avendano at the residence, and advised her of her Miranda rights. During the interview with Avendano, she waived her Miranda rights and admitted to sending multiple packages containing methamphetamine to the Western District of Arkansas for distribution.

 Avendano was indicted by a federal grand jury in July 2017 and pleaded guilty in January 2018.

This case was investigated by the Drug Enforcement Administration.  Assistant United States Attorney Kim Harris prosecuted the case for the United States.

Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Eliseo Alvarez Sr. age 52, of Pineville, Missouri, was sentenced yesterday to 210 months in federal prison, to run partially concurrent with a sentence previously ordered against him in the Eastern District of Arkansas, followed by five years of supervised release. Alvarez Sr. was also ordered to pay a $4,900.00 fine 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 May 2017, during the course of an investigation into the distribution of methamphetamine in the Western District of Arkansas, Homeland Security Investigation (HSI) and the Drug Enforcement Administration, (DEA) identified Alvarez Sr. as a methamphetamine source of supply for local distributors of methamphetamine. During the investigation, agents observed Alvarez Sr. meeting with a known methamphetamine distributor and drop off a green colored bag. After the meeting, agents arrested the known distributor for an outstanding warrant. During a search of the vehicle, agents located 433.5 grams of suspected methamphetamine that was located in the green bag. The suspected methamphetamine was sent the DEA South Central Lab for testing. The results confirmed that the substance was in fact a mixture of substance that contained actual methamphetamine.

Alvarez was indicted by a federal grand jury in October 2017 and pled guilty in January 2018.

This case was investigated by HSI and the DEA.  Assistant United States Attorney Brice White prosecuted the case for the United States.

Fayetteville, AR – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas announced that Ryan Payne, age 36, of Barling, Arkansas, was sentenced today to 52 months in federal prison followed by three years of supervised release and ordered to pay $9,953.13 in restitution for False Representation of a Social Security Number and Aggravated Identity Theft.   The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.

According to court records, in 2015, the Treasury Inspector General for Tax Administration launched a criminal investigation of Payne stemming from his employment at the IRS in Fayetteville, Arkansas, as a revenue agent. Payne resigned from his position in January 2015. As part of his duties as a revenue agent, Payne conducted an official audit of a business for the tax year 2010. The owner of the business provided Payne a flash drive containing business records, as well as personal identifying information. Payne retained the flash drive after leaving employment at the IRS and compromised the business owner’s identity. Specifically, Payne set up a credit account using the business owner’s name and social security number without authorization.

The Treasury Inspector General for Tax Administration (TIGTA) and the Social Security Administration’s Office of Inspector General conducted the investigation. Assistant United States Attorney Sydney Butler prosecuted the case for the United States.

Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Ingrid Garcia, age 40, of Fort Smith, Arkansas, 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, after several months of an investigation, the Drug Enforcement Administration (DEA) and the Springdale Police Department learned that methamphetamine was being distributed in Northwest Arkansas by Garcia.  In October of 2017, agents arranged and conducted a controlled purchase of methamphetamine from Garcia in the Western District of Arkansas. The substance purchased was sent to the DEA South Central Laboratory for testing. The lab determined that the substance contained 103.23 grams of actual methamphetamine.

Garcia was indicted by a federal grand jury in December 2017 and entered a guilty plea in January 2018.

This case was investigated by the Drug Enforcement Administration (DEA) and the Springdale Police Department.  Assistant United States Attorney Kim Harris prosecuted the case for the United States.

Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Thomas Matthew Swank, age 36, of Centerton, Arkansas, was sentenced today to 63 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, after several months of an investigation, the Drug Enforcement Administration (DEA) and the Benton County Sheriff’s Department learned that methamphetamine was being distributed in Northwest Arkansas by Swank.  In September of 2017, agents arranged and conducted a controlled purchase of methamphetamine from Swank in the Western District of Arkansas. The substance purchased was sent to the DEA South Central Laboratory for testing. The lab determined that the substance contained 7.8 grams of actual methamphetamine.

 Swank was indicted by a federal grand jury in December 2017 and entered a guilty plea in January 2018.

This case was investigated by the Drug Enforcement Administration (DEA) and the Benton County Sheriff’s department.  Assistant United States Attorney Kim Harris prosecuted the case for the United States.

Fayetteville, AR – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Robert Rogers, age 73, of Rogers, Arkansas, was sentenced today to three years probation with the first 18 months to be served as home confinement and ordered to pay $250,000.00 in fines for Operating an Illegal Gambling Business. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.

According to court records, beginning in 2016, special agents from the Internal Revenue Service (IRS) and the Federal Bureau of Investigation (FBI) began an investigating a large scale gambling operation that was being run by Rogers from his Rogers, Arkansas residence.

During the investigation, federal agents discovered that Rogers directed a gambling operation that consisted mainly of taking bets on college and professional football and basketball games based on point spreads all in violation of Arkansas law. Records show that Rogers operated the gambling operation for at least 15 consecutive years and had a gross revenue of at least $70,000.00-$80,000.00 per year.

On February 8, 2017, agents from the IRS and FBI executed a search warrant on Rogers’s residence where they discovered additional evidence of his illegal gambling operation.

Rogers was indicted by a federal grand jury in July 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 Denis Dean prosecuted the case for the United States.

A former Arkansas State Senator and an Arkansas consultant have been convicted for a bribery scheme in which state funds were directed to non-profit entities in exchange for kickbacks funneled through the consultant’s business, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Duane “DAK” Kees for the Western District of Arkansas.

Jonathan E. Woods, 40, of Springdale, Arkansas, was convicted of one count of conspiracy to commit honest services mail and wire fraud, 12 counts of honest services wire fraud, one count of honest services mail fraud and one count of money laundering. Randell G. Shelton Jr., 38, of Alma, Arkansas, was convicted of one count of conspiracy to commit honest services mail and wire fraud, 10 counts of honest services wire fraud and one count of honest services mail fraud.

“Jonathan Woods abused his position as an Arkansas State Senator by soliciting and accepting kickbacks and Randall Shelton helped him cover it up by funneling the kickbacks through his consulting company,” said Acting Assistant Attorney General Cronan. “The Criminal Division is committed to preserving the public’s confidence in our government by investigating and prosecuting corrupt public officials and those that help them conceal their crimes.” 

“Abuse of the public trust cannot be tolerated and must be met with severe consequences,” said U.S. Attorney Kees. “I hope this verdict serves as a warning to all those that have been entrusted with serving the people.”

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, 49, 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 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, before Judge Brooks to one count of honest services wire fraud.  Sentencings will be scheduled at a later date.

The FBI and IRS 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 are prosecuting the case.

Fayetteville, AR – Former Arkansas State Senator and an Arkansas consultant have been convicted for a bribery scheme in which state funds were directed to non-profit entities in exchange for kickbacks funneled through the consultant’s business, announced Duane (DAK) Kees, United States Attorney for the Western District of Arkansas and Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division.

Jonathan E. Woods, 40, of Springdale, Arkansas, was convicted of one count of conspiracy to commit honest services mail and wire fraud in violation of Title 18 U.S.C. §  1349, twelve counts of honest services wire fraud, one count of honest services mail fraud and one count of money laundering.  Randell G. Shelton Jr., 38, of Alma, Arkansas, was convicted of one count of conspiracy to commit honest services mail and wire fraud in violation of Title 18 U.S.C. §  1349, ten counts of honest services wire fraud and one count of honest services mail fraud. 

“Jonathan Woods abused his position as an Arkansas State Senator by soliciting and accepting kickbacks and Randall Shelton covered it up by funneling the kickbacks through his consulting company,” said Acting Assistant Attorney General Cronan. “The Criminal Division is committed to preserving the public’s confidence in our government by investigating and prosecuting corrupt public officials and those that help them conceal their crimes.” 

“Abuse of the public trust cannot be tolerated and must be met with severe consequences.” said U.S. Attorney Kees. “I hope this verdict serves as a warning to all those that have been entrusted with serving the people.”

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, 49, 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 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 will be scheduled at a later date.

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.

Fort Smith, Arkansas –Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Allen Frank Martin, age 57 of Arkoma, Oklahoma, was sentenced today to 87 months in federal prison followed by three years of supervised release, and ordered to pay $277,767.40 in restitution on one count of Aggravated Identity Theft, one count of Theft of Government Funds, and one count of Failure to Appear. The Honorable P.K. Holmes, III presided over the sentencing hearing in the United States District Court in Fort Smith. 

According to court records, in September 2016, a source reported to a Social Security Administration claims representative that Martin was using the identity of another person to receive disability benefits. A subsequent investigation revealed that Martin stole someone’s wallet containing personal identifying information in 1990, and thereafter, he assumed the victim’s identity until his arrest on January 11, 2017. Martin fraudulently received $277,767.40 in Social Security disability funds using the false identity since 2003. During the same time period, Martin was working and failed to report any wages earned to the Social Security Administration. From 1990 until his arrest in 2017, Martin also has used the false identity to obtain multiple Arkansas driver’s licenses, at least one California driver’s license, a social security card, a birth registration card and open a bank account.  

Martin was arrested and indicted in January of 2017.  Martin was originally set for a sentencing hearing in August 2017, but he failed to appear to a bond revocation hearing scheduled beforehand and removed his GPS ankle monitor and fled the district.  His whereabouts were unknown until he was arrested by the United States Marshal’s Service on November 13, 2017 while working in a hotel in Oklahoma.

The investigation was conducted by the Social Security Administration Office of Inspector General. Assistant United States Attorney Sydney Butler prosecuted the case for the United States.

Hot Springs, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Rasheen Murdock, age 37, of Modesto, California was found guilty on one count of conspiracy to distribute methamphetamine, one count of aiding and abetting in the distribution of methamphetamine, and one count of witness tampering following a three-day jury trial in Hot Springs. The Honorable Susan O. Hickey presided over the trial.  

According to evidence presented at the trial, in March 2016, law enforcement investigators in Hot Springs, Arkansas received information from a cooperating source (CS) that Murdock was engaged in a methamphetamine drug trafficking operation. After receiving the information, investigators equipped the CS with audio/video surveillance equipment. The CS’s surveillance information revealed communications between Murdock and others involved in the drug trafficking organization, discussing the sale of methamphetamine, heroin, and other drugs.  The investigation further revealed that Murdock supplied eight ounces of methamphetamine to a co-conspirator during the operation and that he supplied additional amounts of methamphetamine to others involved in the conspiracy that were distributed in the Hot Springs area in March of 2016.  After learning of the arrest of one of his co-conspirator’s on March 14, 2016, Murdock left the Hot Springs area and returned to California, where he was ultimately arrested.  In November of 2017, while awaiting trial, Murdock was housed in the same cell as one of his co-conspirators.  Murdock forced the co-conspirator to write a letter to the Court and the AUSA prosecuting his case stating that Murdock was innocent of all charges.  The co-conspirator advised the Court and Jury that he felt that if he did not do what Murdock asked, there would be conflict, and that the letter Murdock had him write contained all lies.

Murdock was indicted by a Federal Grand Jury.  The Second Superseding Indictment was returned by the Federal Grand Jury on March 6, 2018.  Sentencing will be held at a later date.  The penalty for the count of conspiracy to distribute methamphetamine is not more than 20 years of imprisonment, not more than $1,000,000 fine, or both. The penalty for the count of aiding and abetting in the distribution of  methamphetamine is a mandatory minimum of 20 years,  and not more than life imprisonment; not more than a $20,000,000 fine, or both; a term of supervised release for not less than 10 years and up to life.  The penalty for count three, Witness Tampering, is not more than 20 years imprisonment, not more than $250,000 fine, or both. The defendant’s sentence will be determined by the court during a hearing to be held on a later date.

This case was investigated by Homeland Security Investigations, the local drug enforcement task force in Garland County, and the Arkansas State Police.  Assistant United States Attorneys David Harris and Kim Harris prosecuted the case for the United States.

Fort Smith, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Deborah Nabors, age 55, of Van Buren, was sentenced today to 71 months in federal prison followed by four years of supervised release on one count of Distribution of 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 December 2016, the Drug Enforcement Administration (DEA) learned that methamphetamine was being distributed in the Fort Smith area by Nabors. During the investigation, DEA arranged and conducted a controlled purchase of methamphetamine from Nabors.  The substance purchased was sent to the DEA South Central Laboratory for testing. The lab determined that the substance contained 74.62 grams of actual methamphetamine.

Nabors was indicted by a federal grand jury in October 2017 and entered a guilty plea in January 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, Sebastian County Sheriff’s Office, Van Buren Police Department and the 12th/21st Judicial District Drug Task Force. Assistant United States Attorneys Candace Taylor and Aaron Jennen prosecuted the case for the United States.

Fort Smith, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Kamel J. Lincoln, 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 Distribution of 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 Lincoln. During the investigation, DEA arranged and conducted a controlled purchase of methamphetamine from Lincoln.  The substance purchased was sent to the DEA South Central Laboratory for testing. The lab determined that the substance contained 11.728 grams of actual methamphetamine.

Lincoln was indicted by a federal grand jury in October 2017 and entered a guilty plea in January 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.

Fort Smith, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Gregg Nicholas, age 55, of Huntsville, was sentenced April 4, 2018, to 60 months in federal prison followed by three years of supervised release on one count of Felon in Possession of a Firearm. The Honorable P.K. Holmes, III, Chief United States District Judge, presided over the sentencing hearing in Fort Smith.

According to court records, in April 2017, Huntsville law enforcement responded to a report from a Huntsville business that Nicholas claimed to be a Department of Homeland Security (DHS) employee and requested the business to sew on DHS patches on camouflage shirts.  When law enforcement responded to the report, a detective observed Nicholas wearing both a federal game warden badge and a United States Department of Treasury badge. When the detective asked Nicholas about his employment with DHS, Nicholas then claimed he was retired from DHS, was a trained United States Marine, and completed several undercover jobs with the Bureau of Alcohol, Tobacco, and Firearms in his career. While speaking with the detective, Nicholas alluded to the fact that he possessed several firearms at his residence. At this point, Nicholas was arrested by local law enforcement for Criminal Impersonation.  The detective then contacted Homeland Security Investigations (HSI) for assistance with the investigation. HSI agents conducted a criminal record check and identified that Nicholas had a prior felony conviction. Law enforcement officers executed a search warrant on Nicholas’ residence and discovered fourteen firearms and ammunition inside. Nicholas was indicted by a federal grand jury in June 2017 and entered a guilty plea in October 2017.

This case was investigated by Huntsville Police Department, Madison County Sheriff’s Office; Homeland Security Investigations; Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the United States Postal Inspector. Assistant United States Attorney Candace Taylor 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.

Fort Smith, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Shelly Raye Winfrey, age 47, of Mulberry, was sentenced today to 130 days incarceration, with credit for 130 days served, followed by three years of supervised release and was ordered to pay $1,500.00 in restitution on one count of Setting Fire on Lands of The United States. 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, on April 9, 2017, an off-duty Crawford County Deputy Sheriff and a friend were driving up a dirt road in Franklin County north of Mulberry, Arkansas, when they saw a woman get out of her vehicle, bend over, and then  get  back in  her vehicle and drive off at a high rate of speed. As she left, they saw she had ignited a dead pine tree. The men attempted to extinguish the fire and called the Sheriff’s Office for a local fire department to respond to the scene. The deputy also provided a description of the woman and vehicle. The woman was later identified as Winfrey.

The Mulberry Fire Department arrived and extinguished the fire. The Deputy and friend then continued their journey north and came upon another fire burning approximately one mile from the first fire. They called that fire in and left the area due to concern that they could be trapped by a forest fire. The Mulberry Fire Department extinguished the second fire as well as a third fire that was located further north of the second fire.

During this time, the fire department personnel saw a vehicle that matched the description given by the deputy. A Franklin County Deputy Sheriff arrived, and as he tried to stop the vehicle, the driver and sole occupant, Winfrey, began throwing ignited currency out of the window. Winfrey was taken into custody and transported to the Franklin County Detention Center.

During the investigation it was determined that  Winfrey set fires on land belonging to the United States. Specifically, land belonging to the United States Forest Service known as the Ozark National Forest. Winfrey confirmed and admitted that she illegally set timber on fire on April 9, 2017.

Winfrey was indicted by a federal grand jury in June 2017 and entered a guilty plea in December 2017.

This case was investigated by the U.S Forest Service and the Franklin County Sheriff’s Office. Assistant United States Attorney Claude Hawkins prosecuted the case for the United States.

Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Christopher Scott, age 35 of Rogers, was sentenced today to 151 months in federal prison and four 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 the spring of 2017, the Drug Enforcement Administration (DEA) learned that methamphetamine was being distributed in Northwest Arkansas by Scott.  In May of 2017, the DEA arranged and conducted a controlled purchase of methamphetamine from Scott.  The substance purchased was sent to the DEA South Central Laboratory for testing. The lab determined that the substance contained 26.105 grams of actual methamphetamine.

This case was investigated by the Drug Enforcement Administration and local law enforcement agencies. Assistant United States Attorney Kim Harris prosecuted the case for the United States.

Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that John Mullens, age 38, of Springdale, was sentenced today to 67 months in federal prison followed by four years of supervised release and was ordered to pay a $2,500.00 fine on one count of Possession With Intent To Distribute more than 50 grams of Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.

According to court records, on or about August 11, 2017, investigators the 4th Judicial Drug Task Force ("DTF") searched the home where John Mullens was present in Springdale, Arkansas. During the search investigators found 11 bags containing approximately 158 grams of a mixture or substance containing methamphetamine, digital scales, baggies and a methamphetamine pipe. Mullens stated that everything in the living room belonged to him. The Arkansas State Crime Lab results reflect that the substance recovered contained approximately 130.1 grams of actual methamphetamine.

Mullens was indicted by a federal grand jury in September 2017 and entered a guilty plea in December 2017.

This case was investigated by the 4th Judicial District Drug Task Force. Assistant United States Attorney Amy Driver prosecuted the case for the United States.

Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Pablo Jacinto-Torres, age 24, of Springdale, was sentenced today to 84 months in federal prison followed by three 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 2017, the Springdale Police Department conducted several controlled purchase of methamphetamine from Pablo Jacinto-Torres. On May 15, 2017, Jacinto-Torres was stopped and arrested for an outstanding warrant.  During the search of Jacinto-Torres vehicle, officers located digital scales, a large amount of cash and marijuana.  A search of Jacinto-Torres residence resulted in officers locating approximately 178 grams of methamphetamine.  The Arkansas State Crime Lab results reflect that the substance recovered tested positive for methamphetamine.

Jacinto-Torres was indicted by a federal grand jury in June 2017 and entered a guilty plea in November 2017.

This case was investigated by the Springdale Police Department. Assistant United States Attorney David Harris prosecuted the case for the United States.

Fort Smith, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that, Miguel Angel Galicia-Canseco, age 33, of Clarksville, Tennessee was sentenced today to 84 months in federal prison followed by two years of supervised release on one count possession with intent to distribute methamphetamine.  The Honorable P.K. Holmes, III presided over the sentencing hearing in the United States District Court in Fort Smith.

According to court records, in June of 2017, Arkansas State Police observed a truck suddenly slow down and cross over the white fog line on Interstate 40 in Crawford County, Arkansas. An officer with the Arkansas State Police initiated a traffic stop and identified the driver as Galicia-Canseco. The officer discovered that Galicia-Canseco had a felony arrest warrant out of Tennessee for a drug offense. During the course of the stop, the State Police utilized a K-9 to sniff around the exterior of the truck. The dog alerted the officer to the odor of narcotics near the back of the truck. Officers then searched the truck, and found approximately 19 pounds of methamphetamine.  The drugs were sent to the Drug Enforcement Administration laboratory for analysis and the results indicated the substances totaled 8.5 kilograms of a mixture of methamphetamine at 98% purity or 8.3 kilograms of actual methamphetamine.

Galicia-Canseco pled guilty to possession with intent to distribute methamphetamine in November 2017.

This case was investigated by the Arkansas State Police, and the Drug Enforcement Administration. Assistant United States Attorney Amy M. Driver prosecuted the case for the United States.

Fort Smith, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas; L. Diane Upchurch, Special Agent in Charge of the FBI; and David Etheredge, Prosecuting Attorney for the Fourteenth Judicial District Drug Task Force announced that on February 27, 2018 and March 1, 2018, ten individuals were sentenced by the United States District Court for their roles in a methamphetamine trafficking ring which operated in  Boone, Baxter, Searcy, Newton, Carroll, and Washington Counties in Arkansas. 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, on July 26, 2017, a federal grand jury returned a twenty (20) count Indictment against ten (10) individuals in the Harrison, Arkansas and Central Arkansas areas 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 2016. Arrests of the individuals sentenced on February 27, 2018 and March 1, 2018 were conducted in a multi-agency operation in Harrison on August 17, 2017.

Defendants in this conspiracy received the following sentences:

Ricky Dwayne Moles, age 57, of Harrison, Arkansas was sentenced February 27, 2018 to 70 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine.  Moles was indicted in the Western District of Arkansas in July 2017 and plead guilty in October 2017.           

Vance Lynn Parnin, Jr., age 49, of Berryville, Arkansas was sentenced February 27, 2018 to 78 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine.  Parnin was indicted in the Western District of Arkansas in July 2017 and plead guilty in October 2017.

Eric Lynn Friend, age 40, of Harrison, Arkansas was sentenced February 27, 2018 to 70 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine.  Friend was indicted in the Western District of Arkansas in July 2017 and plead guilty in October 2017.

Ricky William Akins a/k/a “Big Rick”, age 60, of Lead Hill, Arkansas was sentenced February 27, 2018 to 37 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine.  Akins was indicted in the Western District of Arkansas in July 2017 and plead guilty in October 2017.

Brittnee Nicole Perkins, age 27, of Harrison, Arkansas was sentenced February 27, 2018 to 46 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine.  Perkins was indicted in the Western District of Arkansas in July 2017 and plead guilty in October 2017.

Julia Nicole Holley, age 32, of Little Rock, Arkansas was sentenced March 1, 2018 to 18 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine.  Holley was indicted in the Western District of Arkansas in July 2017 and plead guilty in October 2017.

Amy Leann Friend-Hagler, age 37, of Greenbrier, Arkansas was sentenced March 1, 2018 to three years of supervised release and ordered to pay a $5,000.00 fine on one count of Conspiracy to Distribute Methamphetamine.  Friend-Hagler was indicted in the Western District of Arkansas in July 2017 and plead guilty in October 2017.

Bobby Gene Ellis, Jr., age 44, of Harrison, Arkansas was sentenced March 1, 2018 to 70 months in federal prison followed by three  years of supervised release on one count of Conspiracy to Distribute Methamphetamine.  Ellis was indicted in the Western District of Arkansas in July 2017 and plead guilty in October 2017.

Melissa Haley Childs, age 31, of Harrison, Arkansas was sentenced March 1, 2018 to 40 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine.  Childs was indicted in the Western District of Arkansas in July 2017 and plead guilty in October 2017.

A tenth co-defendant on the same Indictment, Corky Ray Anglin, entered a plea of guilty to one (1) count of distribution of a mixture or substance containing methamphetamine on December 14, 2017 and is scheduled for sentencing on April 19, 2018. 

This case was investigated by the Federal Bureau of Investigation, the 14th Judicial Drug Task Force, the Drug Enforcement Administration, the Arkansas State Police, the Boone County Sheriff, the Newton County Sheriff, the Searcy County Sheriff, the Baxter County Sheriff, the Harrison Police Department, and the Arkansas National Guard Counter Drug. Assistant United States Attorney Brandon Carter is prosecuting the case for the Western District of Arkansas.

El Dorado, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Justin Grant Crain, age 38, of El Dorado, Arkansas was sentenced today to 148 months in federal prison followed by five years of supervised release on one count of knowing receipt of child pornography.  The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in El Dorado.

 According to court records, in April of 2016, the National Center for Missing and Exploited Children forwarded information to the Arkansas State Police that images of child pornography were uploaded to cloud storage associated with a specific phone number. A resulting investigation by the Arkansas State Police and the Department of Homeland Security revealed that the images were uploaded by Crain.  Crain was identified as a Union County Sheriff’s Deputy and former El Dorado Police Officer.  The Arkansas State Police obtained and executed a federal search warrant on Crain’s cell phone while he was at work and found that he possessed over fifty images of child pornography.   Crain was arrested on a federal criminal complaint obtained on June 3, 2016 for Accessing the Internet with the Intent to View Child Pornography and Receipt of Child Pornography.  Crain was terminated as an employee of the Union County Sheriff’s Office. 

A subsequent federal search warrant executed by the Arkansas State Police and the United States Secret Service on Crain’s electronic devices found that Crain possessed approximately 850 additional images of child pornography at his home.  Crain was indicted by a federal grand jury sitting in the Western District of Arkansas in June of 2016 on federal charges and later pleaded guilty to the knowing receipt of child pornography in March of 2017.

This case was investigated by the National Center for Missing and Exploited Children, the Arkansas State Police Cybercrimes Unit, the Department of Homeland Security, the United States Secret Service, the Union County Sheriff’s Office, and the Arkansas Internet Crimes Against Children Taskforce. Assistant United States Benjamin Wulff prosecuted the case for the United States.

Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Stormy Sea Lane, age 28, of Fayetteville, was sentenced today to 120 months in federal prison followed by three years of supervised release and was ordered to pay a $1,900.00 fine 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 a traffic stop in April 2017, law enforcement officers conducted a parole search of Lane and found several baggies containing methamphetamine in her purse. Lane was arrested, taken to jail, and searched again by law enforcement. This search produced another baggie of methamphetamine on her person. Lane was released from jail on bond in May 2017. In June 2017, law enforcement learned that Lane was selling methamphetamine in the Springdale, Arkansas area. Officers found and engaged with Lane and another individual. Officers seized an additional seven grams of methamphetamine as a result of this encounter.  All of the methamphetamine seized from Lane was sent to the Arkansas State Crime Lab for testing. The lab determined that the substance contained 28.43 grams of actual methamphetamine.

Lane was indicted by a federal grand jury in July 2017 and entered a guilty plea in November 2017.

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.

Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Chad Sales, age 31, of Springdale, was sentenced today to 120 months in federal prison followed by three years of supervised release and was ordered to pay a $2,900.00 fine and $1,000.00 in restitution on one count of theft of firearms from a federal firearms licensee. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.

According to court records, on June 13, 2017, Springdale law enforcement responded to a burglary at Springdale armory in which 45 different firearms were stolen. During the investigation, officers observed Sales’ vehicle on the surveillance footage. Officers subsequently located and searched Sales’ vehicle and found six stolen guns and a suppressor.  After the search, officers Mirandized Sales and he agreed to make a statement in which he admitted to stealing firearms from an armory. Law enforcement was able to recover and return the majority of the stolen firearms to the armory.

 Sales was indicted by a federal grand jury in July 2017 and entered a guilty plea in September 2017.

This case was investigated by the Springdale Police Department 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.

Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Carlos Mendoza-Mojica, age 30, of Springdale, was sentenced today to 78 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, in the summer of 2015, the Drug Enforcement Administration (DEA) learned that methamphetamine was being distributed in Northwest Arkansas by Mendoza-Mojica.  In April of 2017, the DEA arranged and conducted a controlled purchase of methamphetamine from Mendoza-Mojica from his place of business in Springdale, Arkansas.  The substance purchased was sent to the DEA South Central Laboratory for testing. The lab determined that the substance contained 105.5 grams of actual methamphetamine.

Mendoza-Mojica was indicted by a federal grand jury in June 2017 and entered a guilty plea  in August 2017.

This case was investigated by the Drug Enforcement Administration (DEA).  Assistant United States Attorney Kim Harris prosecuted the case for the United States.

Arkansas State Senator Jakes C. Files pleaded guilty today to wire fraud and money laundering charges for orchestrating a scheme to obtain approximately $46,500 in state government funds through fraudulent means, and to one charge of bank fraud for obtaining approximately $56,700 in loan proceeds, also through fraudulent means.

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Duane A. Kees for the Western District of Arkansas made the announcement.

Files, 45, of Fort Smith, Arkansas, who represents Arkansas’s state legislative district No. 8 in the Arkansas State Senate, pleaded guilty before Chief U.S. District Court Judge P. K. Holmes III of the Western District of Arkansas to an information charging him with one count of wire fraud, one count of money laundering and one count of bank fraud. 

As part of his plea, Files admitted that, between August 2016 and December 2016, while serving in the Arkansas State Senate, he used his senate office to obtain government money known as General Improvement Funds (GIF) through fraudulent means and for personal gain.  Specifically, Files authorized and directed the Western Arkansas Economic Development District, which was responsible for administrating the GIF in Files’s legislative district, to award a total of $46,500 in GIF money to the City of Fort Smith.  To secure the release of the GIF money, Files prepared and submitted three fraudulent bids to the Western Arkansas Economic Development District.  Files then instructed an associate to open a bank account under that person’s name to conceal his role as the ultimately beneficiary of the GIF award.  When a first installment of approximately $25,900 was wire transferred from the City of Fort Smith to the associate’s bank account, the associate withdrew approximately $11,900 of the funds in a cashier’s check made payable to FFH Construction, Files’s construction company, and the rest in cash.  The associate then hand-delivered the check and the cash to Files who, in turn, deposited the check into his personal bank account.

Files also admitted to submitting a materially false loan application in November 2016 as part of a scheme to secure approximately $56,700 from First Western Bank.

The FBI investigated the case.  Trial Attorney Victor R. Salgado of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Kyra Jenner of the Western District of Arkansas are prosecuting the case.

Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Peng Chanthalangsy, age 37, of Rogers, Arkansas, was sentenced today to 92 months in federal prison followed by fifteen years of supervised release on one count of Receipt of Child Pornography.  The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville. 

In March of 2017, the Rogers Police Department, while investigating a drug trafficking organization, executed a search warrant on the Rogers residence of Chanthalangsy. In addition to confiscating illegal narcotics, law enforcement seized numerous computers and electronic devices. While searching the electronic devices for evidence of drug trafficking, law enforcement located numerous images of child pornography. A federal search warrant was obtained specifically to allow for a search of child pornography, which revealed approximately two thousand (2000) images of minors engaged in sexual explicit conduct. At sentencing, the Government presented the Court with evidence that some of the images depicted minors as young as toddlers.  

“HSI works everyday with our state and local law enforcement partners to ensure the perpetrators of these despicable crimes are brought to justice”, said Acting Special Agent in Charge of HSI New Orleans Thomas M. Annello. “We will continue to aggressively investigate allegations of child exploitation and seek justice for the most vulnerable of our citizens, our children.”  Annello is the Special Agent in Charge of the New Orleans field office with responsibility for Arkansas, Alabama, Louisiana, Mississippi, and Tennessee. 

Chanthalangsy  was indicted by a federal grand jury in April 2017 and entered a guilty plea in August 2017.

This case was investigated by the Department of Homeland Security Investigations and the Rogers Police Department.  Assistant United States Attorney Dustin Roberts prosecuted the case for the United States.

Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Manuel Ortiz Jr.,  age 37, of Rogers, was sentenced today to 63 months in federal prison followed by three years of supervised release and was ordered to pay a $35,000.00 fine on one count of Aiding and Abetting in the 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 March of 2016, the Drug Enforcement Administration (DEA) utilizing a confidential source (CS) placed a recorded phone call to Ortiz. During the call, the CS asked Ortiz about purchasing one ounce of methamphetamine. Ortiz directed the CS to go to a grocery market in the Western District of Arkansas and purchase the ounce of methamphetamine. The substance purchased was sent to the DEA South Central Laboratory for testing. The lab determined that the substance contained 27.5 grams of actual methamphetamine.

Ortiz was indicted by a federal grand jury in April 2017 and entered a guilty plea in August 2017.

This case was investigated by the Drug Enforcement Administration (DEA).  Assistant United States Attorney Kim Harris prosecuted the case for the United States.