Southern District of Mississippi
Press releases recorded for this federal judicial district.
Hattiesburg Man Sentenced for Conspiracy to Commit Health Care Fraud and Money Laundering in $200 Million Compounding Pharmacy SchemeRead the Press Release
Jackson, Miss. – Jason May, 41, of Hattiesburg, was sentenced yesterday by U.S. District Judge Keith Starrett to 12 months and one day in prison, followed by three years of supervised release, for conspiring to commit health care fraud and money laundering, announced U.S. Attorney Mike Hurst, Special Agent in Charge Michelle Sutphin, of the Federal Bureau of Investigation in Mississippi, Acting Special Agent in Charge Andrew M. Thornton of IRS Criminal Investigations (IRS-CI), Special Agent in Charge Cynthia Bruce of Defense Criminal Investigative Services (DCIS) Southeast Field Office, and Interim Director Steven Maxwell of the Mississippi Bureau of Narcotics (MBN).
May was also ordered to pay restitution in the amount of $182,503,946.75.
From December 2011 until January 2016, May was the pharmacist-in-charge and co-owner of Advantage Pharmacy, a Hattiesburg-based pharmacy. Beginning in late 2012, May conspired with others to select formulas for compounded medications, not based on scientific evaluations of efficacy or individualized patient needs, but rather, to maximize reimbursement from TRICARE and other health care benefit programs. Then he and his co-conspirators mass-produced the compounded medications at Advantage Pharmacy and agreed to waive copayments for the compounded medications to induce TRICARE beneficiaries and others to accept the costly product.
The FBI, IRS-CI, DCIS and MBN investigated the case with assistance from U.S. Postal Service Office of Inspector General (OIG) and Office of Personnel Management OIG. Trial Attorneys Dustin M. Davis, Sara E. Porter, and Katherine E. Payerle of the Criminal Division’s Fraud Section, Trial Attorney Amanda Wick of the Criminal Division’s Money Laundering and Asset Recovery Section, and Assistant United States Attorney Kathlyn R. Van Buskirk of the Southern District of Mississippi prosecuted the case.
Collins Man Pleads Guilty to Conspiring to Distribute MethamphetamineRead the Press Release
Hattiesburg, Mississippi – Reshun Goudy, 24, of Collins, Mississippi, pled guilty today before U.S. District Judge Keith Starrett to conspiracy to possess with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Brad Byerley with the Drug Enforcement Administration (DEA).
On February 12, 2019, Reshun Goudy, as part of a conspiracy with others, distributed a quarter pound of methamphetamine. After seizure, the methamphetamine was sent to the DEA crime lab, which analyzed the methamphetamine as 96% pure.
On July 24, 2019, a federal grand jury indicted Goudy for the conspiracy.
Goudy will be sentenced on November 18, 2020 by Judge Starrett, and faces a maximum penalty of life in prison and a $10,000,000 fine.
The case was investigated by the DEA and prosecuted by Assistant U.S. Attorney Shundral Cole.
Pharmacy Owners Sentenced to Prison for Conspiracy to Commit Health Care Fraud, Conspiracy to Commit Money Laundering and Tax Evasion in $200 Million Compounding Pharmacy SchemeRead the Press Release
Jackson, Miss. – Glenn Doyle Beach, 47, of Sumrall, Mississippi and Hope Thomley, 53, of Hattiesburg, Mississippi were sentenced today by U.S. District Judge Keith Starrett for conspiring to commit health care fraud and conspiring to commit money laundering and tax evasion. Judge Starrett also sentenced Howard “Randy” Thomley, 61, of Hattiesburg, Mississippi for conspiracy to commit health care fraud, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michelle Sutphin, of the Federal Bureau of Investigation in Mississippi, Acting Special Agent in Charge Andrew M. Thornton of IRS Criminal Investigation (IRS-CI), Special Agent in Charge Cynthia Bruce of Defense Criminal Investigative Services (DCIS) Southeast Field Office, and Interim Director Steven Maxwell of the Mississippi Bureau of Narcotics (MBN).
Glenn Doyle Beach was sentenced to 156 months in federal prison followed by three years of supervised release; Hope Thomley was sentenced to 168 months in federal prison followed by three years of supervised release; and Randy Thomley was sentenced to 96 months in federal prison followed by three years of supervised release.
Beach was ordered to pay a monetary judgment of $9,109,872 along with restitution in the amount of $185,407,641.75. Hope Thomley was ordered to pay a monetary judgment of $29,249,018.51 along with restitution in the amount of $189,200,787.75. Randy Thomley was ordered to pay a monetary judgment of $3,651,173.19, along with the restitution in the amount of $3,651,173.19.
Beach and Thomley were both owners of Advantage Pharmacy in Hattiesburg, and Thomley also owned and operated a compound prescription distributor for Advantage Pharmacy. Beach and Hope Thomley were involved in a scheme to defraud health care benefit programs, including TRICARE, by dispensing, distributing, and marketing medications known as compounded medications, which ordinarily are medications that are specially combined or formulated to meet the individual needs of patients.
Through Advantage Pharmacy, Beach formulated and mass-produced compounded medications without regard to the individual needs of patients, but instead in order to increase reimbursements paid by the health care benefit programs. Hope Thomley had knowledge of Beach and other co-conspirators formulating the compounded prescriptions with the ultimate goal being to increase reimbursements. Hope Thomley benefited from that activity because her marketing company received nearly 50 percent of the reimbursements that Advantage Pharmacy obtained from compounded medications. Hope Thomley also obtained prescribers’ signatures on blank prescription forms and then filled out the forms in the names of her children and TRICARE beneficiaries that she and her husband, Randy Thomley, had recruited. From April 2012 through January 2016, health care benefit programs, including TRICARE, reimbursed Advantage Pharmacy and other pharmacies involved in the scheme at least $200 million.
Beach and Hope Thomley were also sentenced for their role in a money laundering and tax evasion scheme that was used to conceal the fraudulent proceeds of the compounded medications scheme and evade taxes.
Randy Thomley owned and operated a company called Advantage Marketing Professionals, which marketed medications for Advantage Pharmacy. For each prescription submitted to Advantage Pharmacy for compounded medications, he received a percentage of revenue. He recruited TRICARE beneficiaries and paid them a percentage of the revenue for each prescription in order to induce the beneficiaries to accept millions of dollars of compounded medications. Randy Thomley also filled out pre-signed prescriptions for the TRICARE beneficiaries, knowing that prescribers had not examined the beneficiaries.
The FBI, IRS-CI, DCIS and MBN investigated the case with assistance from U.S. Postal Service Office of Inspector General (OIG) and Office of Personnel Management OIG. Trial Attorneys Dustin M. Davis, Sara E. Porter, and Katherine E. Payerle of the Criminal Division’s Fraud Section, Trial Attorney Amanda Wick of the Criminal Division’s Money Laundering and Asset Recovery Section, and Assistant United States Attorney Kathlyn R. Van Buskirk of the Southern District of Mississippi prosecuted the case.
Hattiesburg Man Pleads Guilty under Project EJECT to Trafficking MethamphetamineRead the Press Release
Hattiesburg, Miss. – Amos Blanks, 40, of Hattiesburg, pled guilty today before Senior U.S. District Judge Keith Starrett to possessing methamphetamine with the intent to distribute, announced U.S. Attorney Mike Hurst, Special Agent in Charge Brad Byerley with the Drug Enforcement Administration (“DEA”), and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”).
On February 11, 2019, Blanks distributed approximately 224 grams of methamphetamine to another drug dealer, who then sold the drugs to an individual. Pursuant to forensic analysis by the DEA, the methamphetamine was determined to be 98% pure.
Blanks was indicted for this offense on January 15, 2020. He will be sentenced by Judge Starrett on November 18, 2020 at 9:30 a.m.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
The Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. The case is being prosecuted by Assistant United States Attorney Andrew W. Eichner.
Former Jackson Police Officer Charged with Enticement of a Minor and Obstruction of an InvestigationRead the Press Release
Jackson, Miss. – Mark Coleman, 57, a former Jackson Police Officer, was indicted by a Federal Grand Jury on July 14, 2020, and charged with one count of enticement of a minor and one count of destroying, concealing and impeding the investigation, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michelle Sutphin with the Federal Bureau of Investigation in Mississippi.
Coleman will appear for arraignment before United States Magistrate Judge Keith Ball on Wednesday, July 22, 2020 at 2:30 p.m.
According to Count 1 of the indictment, Coleman is alleged to have used a cellular telephone to attempt to persuade, induce, entice or coerce a minor under the age of 18 to engage in sexual activity in violation of Mississippi’s sexual battery statute. According to Count 2 of the indictment, Coleman is alleged to have deleted text messages and images of a minor female from his cellphone and disconnected service to a cellphone he had purchased for the minor female victim, in an attempt to impede, obstruct or influence the investigation.
If convicted, Coleman faces a maximum penalty of life in prison for enticement of a minor and a maximum penalty of 10 years in prison for destroying, concealing and impeding the investigation.
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Glenda Haynes.
The public is reminded that an indictment is merely a charge and should not be considered as evidence of guilt. Every defendant is presumed innocent until proven guilty in a court of law.
Dentist and Nurse Practitioner Sentenced to Prison for Conspiracy to Commit Health Care FraudRead the Press Release
Hattiesburg, Miss. – Gregory Parker, 51, of Laurel, Mississippi and Brantley Paul Nichols, D.M.D., 42, of Oxford, Mississippi were sentenced today by Senior U.S. District Judge Keith Starrett for conspiracy to commit health care fraud, announced U.S. Attorney Mike Hurst, Special Agent in Charge Michelle Sutphin with the Federal Bureau of Investigation in Mississippi, and Special Agent in Charge Cyndy Bruce of the Defense Criminal Investigative Service’s (“DCIS”) Southeast Field Office.
Gregory Parker was sentenced to 18 months in federal prison followed by three years of supervised release. He was also ordered to pay restitution in the amount of $566,979.69.
Brantley Paul Nichols was sentenced to 12 months and one day in federal prison followed by three years of supervised release with 6 months of electronic monitoring. He was also ordered to pay a $75,000 fine along with restitution in the amount of $696,026.
Between 2012 and 2015, while Parker was a nurse practitioner, he conspired with Hope Thomley, owner of Total Care Marketing and Advantage Pharmacy in Hattiesburg, Mississippi, and others to sign numerous blank prescriptions for very expensive compounded creams that Parker knew were not medically necessary. Some of the prescriptions were for patients Parker never examined, including some of Thomley’s family members. As part of the conspiracy, Parker agreed with Thomley that he would be given a kickback for prescribing dietary supplements that were compounded by Advantage Pharmacy. Parker admitted that he would not have written the prescriptions unless he was being reimbursed. Parker’s fraudulent prescriptions cost health care benefit programs, including Tricare, $566,979.69.
Like Parker, beginning in October 2014 and continuing through January 2016, Nichols conspired with others to sign numerous blank prescriptions for expensive compounded medications for patients he did not examine. Nichols admitted to knowing the prescriptions would be submitted to Advantage Pharmacy and Tricare, and other health care benefit programs would ultimately be billed for the prescriptions that were not medically necessary. In total, Tricare reimbursed Advantage Pharmacy approximately $696,000 for the prescriptions that were signed by Nichols.
Hope E. Thomley, 52, previously pled guilty to one count of conspiracy to commit health care fraud and one count of conspiracy to commit money laundering and tax evasion. She will be sentenced by Judge Starrett on July 23, 2020.
The IRS-CI, DCIS, FBI, and the Mississippi Bureau of Narcotics investigated the case. Assistant Chief Dustin M. Davis and Trial Attorney Sara E. Porter of the Criminal Division’s Fraud Section of the U.S. Department of Justice and Assistant U.S. Attorney Kathlyn R. Van Buskirk of the Southern District of Mississippi prosecuted the case.
Federal Corrections Officer Indicted for Accepting BribesRead the Press Release
Jackson, Miss. – Wesley Hughes, 28, of Greenwood, Mississippi, was indicted by a Federal Grand Jury on July 14, 2020 and charged with accepting bribes, announced United States Attorney Mike Hurst, James F. Boyersmith, Special Agent in Charge, U.S. Department of Justice Office of the Inspector General (“DOJ-OIG”) Miami Field Office, and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation (“FBI”) in Mississippi.
According to the indictment, Hughes, who was employed as a Federal Corrections Officer, accepted money from an individual in return for providing contraband to a federal inmate at the Yazoo City Federal Correctional Complex.
Hughes will have his initial court appearance before United States Magistrate Judge Linda R. Anderson in Jackson today at 1:00 p.m.
If convicted, Hughes faces a maximum penalty of 15 years in federal prison and a $250,000 fine.
The case was investigated by the DOJ-OIG and the FBI Jackson Division. The Federal Bureau of Prisons also assisted with the investigation. The case is being prosecuted by Assistant United States Attorney Dave Fulcher.
The public is reminded that an indictment is merely a charge and should not be considered as evidence of guilt. Every defendant is presumed innocent until proven guilty in a court of law.
Former Pearl Resident Sentenced for Dog FightingRead the Press Release
Jackson, Miss. – Antoine Clayborne, 42, formerly of Pearl, Mississippi, was sentenced today by Senior U.S. District Judge David Bramlette III to 36 months’ probation for his participation in a pit bull dog fighting venture, announced U.S. Attorney Mike Hurst and Dax Roberson, Special Agent in Charge, U.S. Department of Agriculture, Office of Inspector General. Clayborne was also ordered to pay a $1,500 fine.
Clayborne pled guilty before Judge Bramlette on March 5, 2020, admitting that he trained pit bulls to fight to the death. Clayborne admitted that he entered one of his pit bulls in a dog fight outside the State of Mississippi, his pit bull won the fight, and as a result Clayborne won a substantial amount of money. Law enforcement discovered Clayborne’s dog-fighting activities as a result of a tip from a citizen concerned about the condition of the pit bulls at Clayborne’s house. After investigating the tip, law enforcement officers obtained a search warrant for Clayborne’s residence and seized eleven adult pit bulls and eight pit bull puppies. Law enforcement also seized a variety of equipment commonly used to train pit bulls to fight, including weighted vests, collars and harnesses, a slat mill used to force the dog to walk, two treadmills with boxes built onto them to hold the dog and force it to walk, heavy chains, hanging scales, flirt poles and break/bite sticks. Clayborne’s cell phone contained gruesome videos of dogs fighting until one dog killed the other, text messages with photos of dogs Clayborne had used for dog fights, invitations to enter animals in fights, and financial receipts of wire transfers related to dog fighting ventures.
The case was investigated by the U.S. Department of Agriculture - Office of Inspector General and the Rankin County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Carla J. Clark.
Hancock County Man Pleads Guilty to Illegal Moonshine ChargesRead the Press Release
Gulfport, Miss – Willie Necaise, Jr., 77, of Hancock County, pled guilty Friday before U.S. District Judge Sul Ozerden to Unlawful Production of Distilled Spirits and Interstate Travel in Aid of a Racketeering Enterprise, announced U.S. Attorney Mike Hurst and Kurt Theilhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Judge Ozerden will sentence Necaise on October 16, 2020 at 10:00 a.m. He faces a maximum penalty of 5 years in prison on each charge. He further faces fines up to $250,000 and 3 years of supervised release.
Agents with the Enforcement Office of the Mississippi Alcoholic Beverage Control (“ABC”) Division began investigating Necaise in 2018. The investigation revealed that, over time, Necaise traveled out of state and obtained at least 569,775 pounds of sugar, a primary ingredient for moonshine. In addition, records showed Necaise getting large deliveries of propane gas to a rural shed in Hancock County, even during the summer. Agents tracked Necaise to Slidell, Louisiana, and observed him getting a pallet of sugar and coming back to Hancock County. Armed with a search warrant, ABC Agents found forty 55-gallon drums of mash, 1200 new plastic jugs and a 200-gallon stainless steel cooker, along with sugar and other items related to illegal moonshine. Necaise did not have a license to distill liquor.
Based on the records of the sugar purchased, it was determined that over 74,070 gallons of taxable whiskey would be produced. No excise tax has ever been paid by Necaise. He therefore owes the ATF Tax and Trade Bureau $898,691.63 in Federal Excise Tax and the Mississippi Department of Revenue $369,752.50 in State Excise Tax.
U.S. Attorney Hurst commended the incredible work of the agents of the Enforcement Office of the Mississippi Alcoholic Beverage Control Division of the Mississippi Department of Revenue and the Bureau of Alcohol, Tobacco, Forearms and Explosives, who cooperated in investigating the case. Assistant United States Attorney Annette Williams is prosecuting the case.
Ocean Springs Woman Pleads Guilty to Knowingly Filing False Tax ReturnRead the Press Release
Gulfport, Miss – Lisa Gordon-Scruggs, 52, of Ocean Springs, Mississippi, pled guilty today before U.S. District Judge Sul Ozerden to filing a false tax return, announced U.S. Attorney Mike Hurst and James E. Dorsey, Special Agent in Charge of Internal Revenue Service Criminal Investigation.
Gordon-Scruggs was the Chief Operating Officer and office manager of Highside Chemicals, Inc. (“Highside”) in Gulfport, Mississippi during the investigative period: 2013 through 2018. Based on her position and access to the bank account of Highside, Gordon-Scruggs embezzled over $2 million dollars which she funneled into accounts owned by herself or to pay off credit cards in her name and a family member.
Gordon-Scruggs pled guilty to one count of knowingly filing a false income tax report for tax year 2014 in that she reported taxable income of $34,907 but did not include the $446,423 that she had embezzled from Highside that year.
Gordon-Scruggs will be sentenced on October 16, 2020 by Judge Ozerden, and faces maximum penalties of 3 years in prison and a $250,000 fine.
The case was investigated by Internal Revenue Service’s Criminal Investigation Division and prosecuted by Assistant U.S. Attorney John Meynardie.
Moss Point Mayor and Wife Indicted on Federal Fraud ChargesRead the Press Release
Gulfport, Miss. – Moss Point Mayor Mario King, 33, and his wife, Natasha R. King, 32, of Moss Point, Mississippi, appeared today before U.S. Magistrate Judge Robert H. Walker on fraud charges relating to the Mayor’s Gala held in 2019, announced U.S. Attorney Mike Hurst, Mississippi State Auditor Shad White, and Special Agent in Charge Michelle A. Sutphin of the Federal Bureau of Investigation in Mississippi.
The indictment alleges that defendants Mario King and Natasha R. King began soliciting funds in late 2018 for a Gala to be held on March 23, 2019, in Moss Point. The written solicitation stated that the “gala honors and supports organizations that are making a difference for the mental health community. Proceeds support the efforts of mental health in the City of Moss Point with a focus on the Moss Point School District, converting spaces into a therapeutic and innovative learning environment.”
According to the indictment, on March 4, 2019, defendants Mario King and Natasha R. King appeared together on WLOX television and described the event, stating that funds from the Gala were to be used to create safe spaces for mental health counseling in the Moss Point School District.
Pursuant to allegations in the indictment, it was the understanding of those contributing to the Gala, either in the form of tickets purchased or contributions, that the proceeds from the Gala would go to the Moss Point School District. Some of the funds were used to pay for the cost of the Gala, but the remaining proceeds did not go to the Moss Point School District. Instead, it is alleged that defendants Mario King and Natasha R. King used the proceeds for personal purchases, including the down payment on the purchase of a vehicle, cash withdrawals and the payment of credit card debts involving charges to complete the purchase of a personal pet.
The defendants appeared before U.S. Magistrate Judge Walker at 10:00 a.m. this morning for their initial appearance and arraignment. The case has been assigned to U.S. District Judge Sul Ozerden. If convicted, the defendants face up to five years on the conspiracy charge and up to twenty years on each of the thirteen wire fraud charges. Each of the fourteen counts carries a maximum fine of $250,000.
The case was investigated by the Mississippi State Auditor’s Office and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney John Meynardie.
The public is reminded that an indictment is merely a charge and should not be considered as evidence of guilt. Every defendant is presumed innocent until proven guilty in a court of law.
Compounding Pharmacy Mogul Pleads Guilty to Conspiracy to Commit Health Care Fraud and Conspiracy to Commit Money LaunderingRead the Press Release
WASHINGTON – A Mississippi businessman pleaded guilty Thursday for his role in a multi-million dollar scheme to defraud TRICARE, the health care benefit program serving U.S. military, veterans, and their respective family members, as well as private health care benefit programs, by paying kickbacks to practitioners and distributors for the prescribing and referring of fraudulent prescriptions for not medically necessary compounded medications that were ultimately dispensed by his pharmacies, as well as for his role in a scheme to launder the proceeds of the fraud scheme.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Mike Hurst of the Southern District of Mississippi, Special Agent in Charge Michelle Sutphin of the FBI’s Jackson Field Office, Acting Special Agent in Charge Andrew M. Thornton of IRS Criminal Investigation’s (IRS-CI) New Orleans Field Office, Special Agent in Charge Cynthia Bruce of the Defense Criminal Investigative Service’s (DCIS) Southeast Field Office, and Interim Director Steven Maxwell of the Mississippi Bureau of Narcotics (MBN), made the announcement.
Wade Ashley Walters, 53, of Hattiesburg, Mississippi, a co-owner of numerous compounding pharmacies and pharmaceutical distributors, pleaded guilty to one count of conspiracy to commit health care fraud and conspiracy to commit money laundering before U.S. District Judge Keith Starrett of the Southern District of Mississippi. Defendant was remanded into custody following the plea hearing. Sentencing has been scheduled for Oct. 28, 2020, before Judge Starrett.
As part of his guilty plea, Walters admitted that, between 2012 and 2016, he orchestrated a scheme to defraud TRICARE and other health care benefit programs by distributing compounded medications that were not medically necessary. As part of the scheme, Walters among other things, adjusted prescription formulas to ensure the highest reimbursement without regard to efficacy; solicited recruiters to procure prescriptions for high-margin compounded medications and paid those recruiters commissions based on the percentage of the reimbursements paid by pharmacy benefit managers and health care benefit programs, including commissions on claims reimbursed by TRICARE; solicited (and at times paying kickbacks to) practitioners to authorize prescriptions for high-margin compounded medications; routinely and systematically waived and/or reduced copayments to be paid by beneficiaries and members, including utilizing a purported copayment assistance program to falsely make it appears as if the pharmacies were collecting copayments. Walters and his numerous co-conspirators effectuated a scheme to defraud health care benefit programs, including the TRICARE program, in the amount of $287,659,569, with losses to a government health care program exceeding $20,000,000. Walters obtained over $40,000,000 in proceeds derived directly or indirectly from the fraud.
Walters also admitted that he and others laundered the proceeds by engaging in monetary transactions in amounts of over $10,000 in proceeds from the fraud scheme, including transactions relating to his participation in a sham intellectual property scheme.
The FBI, IRS-CI, DCIS, FBI, and MBN investigated the case with assistance from the U.S. Postal Service Office of Inspector General (OIG), Office of Personnel Management OIG and the Mississippi Attorney General's Office. Trial Attorneys Dustin M. Davis, Sara E. Porter, and Katherine E. Payerle of the Criminal Division’s Fraud Section, Trial Attorney Stephanie Williamson of the Criminal Division’s Money Laundering and Asset Recovery Section, and Assistant United States Attorney Kathlyn R. Van Buskirk of the Southern District of Mississippi are prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Compounding Pharmacy Mogul Pleads Guilty to Conspiracy to Commit Health Care Fraud and Conspiracy to Commit Money LaunderingRead the Press Release
A Mississippi businessman pleaded guilty Thursday for his role in a multi-million dollar scheme to defraud TRICARE, the health care benefit program serving U.S. military, veterans, and their respective family members, as well as private health care benefit programs, by paying kickbacks to practitioners and distributors for the prescribing and referring of fraudulent prescriptions for not medically necessary compounded medications that were ultimately dispensed by his pharmacies, as well as for his role in a scheme to launder the proceeds of the fraud scheme.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Mike Hurst of the Southern District of Mississippi, Special Agent in Charge Michelle Sutphin of the FBI’s Jackson Field Office, Acting Special Agent in Charge Andrew M. Thornton of IRS Criminal Investigation’s (IRS-CI) New Orleans Field Office, Special Agent in Charge Cynthia Bruce of the Defense Criminal Investigative Service’s (DCIS) Southeast Field Office, and Interim Director Steven Maxwell of the Mississippi Bureau of Narcotics (MBN), made the announcement.
Wade Ashley Walters, 53, of Hattiesburg, Mississippi, a co-owner of numerous compounding pharmacies and pharmaceutical distributors, pleaded guilty to one count of conspiracy to commit health care fraud and conspiracy to commit money laundering before U.S. District Judge Keith Starrett of the Southern District of Mississippi. Defendant was remanded into custody following the plea hearing. Sentencing has been scheduled for Oct. 28, 2020, before Judge Starrett.
As part of his guilty plea, Walters admitted that, between 2012 and 2016, he orchestrated a scheme to defraud TRICARE and other health care benefit programs by distributing compounded medications that were not medically necessary. As part of the scheme, Walters among other things, adjusted prescription formulas to ensure the highest reimbursement without regard to efficacy; solicited recruiters to procure prescriptions for high-margin compounded medications and paid those recruiters commissions based on the percentage of the reimbursements paid by pharmacy benefit managers and health care benefit programs, including commissions on claims reimbursed by TRICARE; solicited (and at times paying kickbacks to) practitioners to authorize prescriptions for high-margin compounded medications; routinely and systematically waived and/or reduced copayments to be paid by beneficiaries and members, including utilizing a purported copayment assistance program to falsely make it appears as if the pharmacies were collecting copayments. Walters and his numerous co-conspirators effectuated a scheme to defraud health care benefit programs, including the TRICARE program, in the amount of $287,659,569, with losses to a government health care program exceeding $20,000,000. Walters obtained over $40,000,000 in proceeds derived directly or indirectly from the fraud.
Walters also admitted that he and others laundered the proceeds by engaging in monetary transactions in amounts of over $10,000 in proceeds from the fraud scheme, including transactions relating to his participation in a sham intellectual property scheme.
The FBI, IRS-CI, DCIS, FBI, and MBN investigated the case with assistance from the U.S. Postal Service Office of Inspector General (OIG), Office of Personnel Management OIG and the Mississippi Attorney General's Office. Trial Attorneys Dustin M. Davis, Sara E. Porter, and Katherine E. Payerle of the Criminal Division’s Fraud Section, Trial Attorney Stephanie Williamson of the Criminal Division’s Money Laundering and Asset Recovery Section, and Assistant United States Attorney Kathlyn R. Van Buskirk of the Southern District of Mississippi are prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Ridgeland Man Pleads Guilty to Illegally Possessing a Machine GunRead the Press Release
Jackson, Miss – Timothy Lakendrick Liddell, 25, of Ridgeland, pled guilty yesterday before U.S. District Court Judge Carlton W. Reeves to illegally possessing a machine gun, announced U.S. Attorney Mike Hurst and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
On October 11, 2018, Ridgeland Police officers and Mississippi Bureau of Narcotics agents searched Liddell’s apartment pursuant to a search warrant. In addition to finding illegal narcotics, investigators and agents discovered a Glock model 19 handgun that had been converted to a machine gun. The gun was also equipped with a high-capacity magazine capable of holding 31 rounds.
On July 10, 2019, Liddell was charged in a federal criminal indictment with possessing a machine gun and possessing a firearm that was not registered to him in the National Firearms Registration and Transfer Record.
Liddell will be sentenced by Judge Reeves on October 7, 2020 at 9:00 a.m. He faces a statutory penalty of up to 10 years in prison and a $250,000 fine.
This case was investigated by the Ridgeland Police Department, the Mississippi Bureau of Narcotics, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney Bert Carraway.
Illegal Alien from Honduras Sentenced for Making False Statement to Border Patrol AgentRead the Press Release
Gulfport, Miss. – Nilson Noe Olivar-Mejia, 42, an illegal alien from Honduras, pled guilty today before Senior U.S. District Judge Louis Guirola, Jr., to making a false statement or representation in a matter under jurisdiction of the United States, announced U.S. Attorney Mike Hurst.
Olivar-Mejia was sentenced by Judge Guirola to time served (effectively four months) and three years of supervised release. He also will face Department of Homeland Security removal proceedings to remove him to his home nation of Honduras. If he were to unlawfully return to the United States during his three-year term of supervised release, Olivar-Mejia could face separate penalties consecutive to imprisonment from additional prosecution. As a result of this felony conviction, if Olivar-Mejia were to unlawfully return, he could face up to ten years in federal prison.
On March 11, 2020, a Border Patrol Agent assigned to the Gulfport, Mississippi Station conducted a vehicle stop on Interstate 10 in Harrison County. Olivar-Mejia did not have a driver’s license, and provided identification documents bearing a name other than his own. After an investigation, including record checks, it was determined that Olivar-Mejia was an illegal alien from Honduras. He was arrested and transported to the Gulfport Border Patrol station, where it was confirmed that Olivar-Mejia had been previously removed in 2005, after being ordered removed by a U.S. Immigration Judge. Olivar-Mejia had unlawfully returned to the United States, and was again removed to Honduras in 2009.
U.S. Attorney Hurst commended the work of the U.S. Department of Homeland Security and the U.S. Border Patrol. Assistant United States Attorney Stan Harris was the prosecutor for the case.
Memphis Man Sentenced to over 17 Years in Federal Prison for Cocaine Trafficking Organization Covering Multiple StatesRead the Press Release
Gulfport, Miss. – Fortrell Latrae Sain, 38, of Memphis, Tennessee, was sentenced today by Senior U.S. District Judge Louis Guirola, Jr. to 210 months in federal prison, followed by five years of supervised release, for conspiracy to possess with intent to distribute 5 kilograms or more of cocaine, announced United States Attorney Mike Hurst and Special Agent in Charge Jere T. Miles with Homeland Security Investigations in New Orleans. Sain was also ordered to pay a $10,000 fine.
In late 2018, HSI agents began investigating a drug trafficking organization with connections to Memphis, Tennessee, and Indianapolis, Indiana. Through their investigation, agents determined that Sain acted as the middle man in the cocaine conspiracy that involved co-defendants, Ray Parham and Riondal Taylor. During trial, it was revealed that Sain played an intricate role in aiding the drug trafficking organization by making connections for their supply of cocaine. Throughout the conspiracy, Sain communicated with Parham and another individual with the goal of securing a purchase of 25 kilograms of cocaine.
On February 21, 2020, Sain was found guilty by a jury following a trial in U.S. District Court in Gulfport.
Parham and Taylor pled guilty for their roles in the conspiracy on November 8, 2019. Parham was sentenced by Judge Guirola on March 4, 2020 to serve 72 months in federal prison followed by 5 years supervised release. Taylor will be sentenced by Judge Guirola on August 4, 2020 at 1:30 p.m.
The case was investigated by Homeland Security Investigations. It was prosecuted by Assistant United States Attorneys Shundral H. Cole and Kathlyn Van Buskirk.
Jackson Murder Suspect Released on Bond Multiple Times by Local Judges Arrested Under Project EJECT on Federal Charges for Illegally Possessing Firearm While Under IndictmentRead the Press Release
Jackson, Miss. – T’Quarius Jones, 21, of Jackson, Mississippi, has been charged with receipt of a firearm by a person under felony indictment, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
On or about April 30, 2018, Jones was arrested for allegedly killing another man in Jackson by shooting him over 20 times with an AR15-style rifle. Although initially detained, Jones was later released by Hinds County Circuit Judge Tomie Green on a $20,000 bond.
On or about May 16, 2019, Jones was indicted by a Hinds County Grand Jury charging him with First Degree Murder. Jones was nonetheless allowed to remain free on a $20,000 bond by Hinds County Circuit Judge Adrienne Wooten. Judge Wooten also denied the local District Attorney’s request that the Defendant wear an ankle monitor.
On May 7, 2020, Jones was stopped by a Jackson Police Officer. Upon approaching the vehicle, the officer saw a black handgun in his vehicle. When asked about the weapon, Jones stated that the gun was his. That firearm, a Smith & Wesson 9mm pistol, was purchased by Jones’s father on March 14, 2020. Federal law prohibits individuals from receiving firearms while under indictment.
On May 27, 2020, the Hinds County District Attorney’s Office moved to revoke Jones’s bond. On or about June 19, 2020, Hinds County Circuit Judge Wooten denied the District Attorney’s Motion to Revoke Bond and allowed Jones to continue to remain free on $20,000 bond.
Jones is set to appear before Magistrate Judge F. Keith Ball at 2:30 p.m. today. Jones faces a maximum sentence of five years in federal prison and a $250,000 fine.
The public is reminded that a criminal complaint is merely a charge and should not be considered as evidence of guilt. Every defendant is presumed innocent until proven guilty in a court of law.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Christopher Wansley.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Illegal Aliens from Guatemala Sentenced for Unlawfully Returning to the United States After Having Been RemovedRead the Press Release
Gulfport, Miss. – Flavio Hilario Perez-Hernandez, 28, and Amilcar Tomas-Aguilar, 28, both illegal aliens from Guatemala, have pled guilty and have been sentenced for unlawful reentry after deportation or removal, announced U.S. Attorney Mike Hurst.
Perez-Hernandez pled guilty today before Senior U.S. District Judge Louis Guirola, Jr., and was sentenced to “time served” (effectively 4 months and 19 days). Tomas-Aguilar pled guilty on June 24, 2020 before U.S. District Judge Sul Ozerden and was also sentenced to “time served” (effectively 4 months and 5 days). The defendants were also sentenced to one year of supervised release. The Department of Homeland Security will institute removal proceedings to remove them back to their home nation of Guatemala. If either of the two men were to unlawfully return again to the United States, during their term of supervised release, the offender could face a separate penalty consecutive to imprisonment from additional prosecution. As a result of this felony conviction, if Perez-Hernandez or Tomas-Aguilar were to unlawfully return again to the United States, they could face up to ten years in federal prison.
On February 20, 2020, a U.S. Border Patrol Agent assigned to the New Orleans Sector’s Gulfport Station, encountered Flavio Hilario Perez-Hernandez during a vehicle stop on Interstate 10 near Biloxi. Additionally, two passengers were in the vehicle, one of whom was Amilcar Tomas-Aguilar. All vehicle occupants were determined to be in the United States unlawfully, and were arrested and transported to the Gulfport Border Patrol Station for processing.
Further investigation revealed that both Perez-Hernandez and Tomas-Aguilar had returned to the United States after having been previously deported.
U.S. Attorney Hurst praised the investigation and interdiction of the Department of Homeland Security, and the United States Border Patrol. Assistant United States Attorney Stan Harris was the prosecutor for the case.
Hattiesburg Nurse Sentenced to Prison for Mail Fraud in Connection with Compounding Pharmacy SchemeRead the Press Release
Hattiesburg, Miss. – Fallon Deneem Page, 37, of Hattiesburg, was sentenced today by Senior U.S. District Judge Keitih Starrett to serve 18 months in federal prison, followed by 3 years of supervised release, for mail fraud in connection with a widespread compounding pharmacy scheme, announced U.S. Attorney Mike Hurst, Special Agent in Charge Michelle Sutphin of the Federal Bureau of Investigation (“FBI”) in Mississippi, and Special Agent in Charge Cyndy Bruce of the Defense Criminal Investigative Service’s (“DCIS”) Southeast Field Office. Page was also ordered to pay a monetary judgment of $9,500.
In August 2014, Page agreed to be paid $100 per referral of individuals she could locate with health insurance benefits to Medical Solutions of Ocean Springs, a business owned by co-defendant Dr. Shahjahan Sultan. Once referred, Medical Solutions and a pharmacy located in Ocean Springs would determine whether the individual’s health insurance covered the cost of the expensive compounded medications prescribed by Dr. Sultan and dispensed by the pharmacy. If covered, Page and other nurses would perform cursory medical examinations of the insured individuals in public places, such as parking lots or gas stations, and on occasions, Page would falsify some of the patient assessment responses. Dr. Sultan would then prescribe the expensive compounded medications.
On at least one occasion, on October 23, 2014, Page knew that Dr. Sultan had not performed any medical assessment of an individual and merely prescribed the compounded medications and the pharmacy sent the compounded prescription via Federal Express to the individual. For prescribing the high adjudicating compound medication, Dr. Sultan was paid 35% by the pharmacy of what they made per prescription. Page knew that Dr. Sultan had not determined any medical necessity prior to prescribing the expensive compounded medication. In total, the individual’s insurance company paid $34,047.00 to the pharmacy.
On June 16, 2020, Dr. Sultan was sentenced to 48 months in federal prison followed by three years of supervised release. He was ordered to pay restitution of $4,102,634.65 to Express Scripts for the Tricare claims, $582,280.79 to CVS Caremark for and $115,611.03 to Catamaran. A money judgment of more than $2.3 million was also ordered.
The case was investigated by the FBI and DCIS. Assistant Chief Dustin M. Davis and Trial Attorney Sara E. Porter of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kathlyn R. Van Buskirk of the Southern District of Mississippi prosecuted the case.
Gulfport Man Sentenced for Being a Felon in Possession of a FirearmRead the Press Release
Gulfport, Miss. – Douglas Gary Mayes, 66, of Gulfport, was sentenced today by Senior U.S. District Judge Louis Guirola, Jr., to time served (approximately five months) and three years of supervised release, for being a convicted felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
On July 2, 2019, ATF agents went to Mayes’s residence in Gulfport to arrest him on an underlying federal indictment for being a felon in possession of a firearm. Mayes advised agents that he had additional firearms in his home, but would not give consent to search. A federal search warrant was obtained and, after searching the residence, agents found three additional firearms and ammunition. Mayes had a previous conviction in Harrison County, Mississippi, for receiving stolen property.
On September 25, 2019, Mayes was indicted for being a felon in possession of a firearm. He pled guilty on January 29, 2020 before Judge Guirola.
The case was investigated by The Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Andrea Jones.
Diamondhead Man Pleads Guilty to Bank FraudRead the Press Release
Gulfport, Miss – Louis Joseph Normand, Jr., 60, of Diamondhead, pled guilty today before Senior U.S. District Judge Louis Guirola Jr. to a Criminal Information charging him with bank fraud, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michelle A. Sutphin with the Federal Bureau of Investigation in Mississippi.
Normand owned businesses involved in the sale of trucks called National Truck Funding and American Truck Group. From 2013 until 2017, he purchased well over 100 18-wheeler trucks for resale. During that time, he received financing from a local bank, as well as private lenders, for 80% of the sales price. In order to increase the amount of the loan and decrease the amount of his down payment, he created false invoices inflating the sales price and, therefore, the amount of the loans he received. Over this period, he was loaned almost $5,000,000, which was approximately 130% of the actual purchase price of the vehicles.
Normand will be sentenced on October 6, 2020 by Judge Guirola. He faces maximum penalties of 30 years in prison and a $1,000,000 fine.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney John Meynardie.
Poplarville Man Sentenced to Life in Prison for Trafficking MethamphetamineRead the Press Release
Gulfport, Mississippi – Brian Travis, 40, of Poplarville, Mississippi was sentenced yesterday by Senior U.S. District Judge Louis Guirola, Jr., to serve life in federal prison for possession with intent to distribute 500 grams or more of methamphetamine, announced U.S. Attorney Mike Hurst and Brad L. Byerley, Special Agent in Charge of the Drug Enforcement Administration (DEA). Travis was also ordered to pay a fine of $10,000.00.
On July 3, 2019, as part of an ongoing DEA investigation into Travis, law enforcement officials executed federal search warrants on two properties in Poplarville, Mississippi. During the execution of the warrants, law enforcement officials located approximately 19 pounds of methamphetamine. Subsequent testing indicated the methamphetamine had a purity of approximately 99%. Additional investigation revealed that Travis was involved with the distribution of kilogram quantities of methamphetamine and led to the seizure of over $40,000.00 and a car.
On August 6, 2019, Travis was charged in a federal criminal indictment. He pled guilty before Judge Guirola on November 26, 2019, to one count of possession with intent to distribute 500 grams or more of methamphetamine.
The case was investigated by the DEA. It was prosecuted by Assistant U.S. Attorney Shundral Cole.
Long Beach Man Pleads Guilty to Methamphetamine TraffickingRead the Press Release
Gulfport, Mississippi – David Gray, 39, of Long Beach, Mississippi, pled guilty today before Senior U.S. District Judge Louis Guirola, Jr. to possession with intent to distribute 50 grams or more of methamphetamine, announced U.S. Attorney Mike Hurst and Brad L. Byerley, Special Agent in Charge of the Drug Enforcement Administration (DEA).
On May 14, 2019, Gray sold over 19 grams of methamphetamine, with a purity of approximately 96%, to an individual. On June 18, 2019, Gray sold over 54 grams of 100% pure methamphetamine to an individual.
On January 15, 2020, Gray was charged in a federal criminal indictment with possession with intent to distribute methamphetamine.
Gray will be sentenced on September 30, 2020, by Judge Guirola, and faces a maximum penalty of life imprisonment and a $10,000,000 fine.
The case was investigated by the DEA and prosecuted by Assistant U.S. Attorney Shundral Cole.
Jones County Man Sentenced to over 12 Years in Prison for Drug ConspiracyRead the Press Release
Jackson, Miss. – Matthew Williams, 33, of Jones County, Mississippi, was sentenced today by U.S. District Judge Henry T. Wingate to serve 146 months in federal prison, followed by five years of supervised release, for conspiracy to distribute 2.6 pounds of methamphetamine and 2.1 pounds of heroin, announced U.S. Attorney Mike Hurst and Brad L. Byerley, Special Agent in Charge of the Drug Enforcement Administration (DEA). Williams was also ordered to pay a $1,500 fine.
In May, 2019, Williams and Soto-Leon, an illegal alien from Mexico, reached an agreement to distribute heroin and methamphetamine. To assist Soto-Leon, Williams made contact with one or more individuals in order to find a buyer for illegal drugs in the possession of Soto-Leon. Through these contacts by Williams, a buyer was identified. Williams spoke directly to the buyer and stated that Soto-Leon was in possession of approximately 3 pounds of methamphetamine known as “ICE” and one kilogram of heroin that he was trying to sell. Williams connected the buyer to Soto-Leon, who began communicating directly with the buyer. Soto-Leon and the buyer reached an agreement on the price for all of the methamphetamine and heroin. Unknown to either Williams or Soto-Leon, the buyer was actually an undercover agent.
On May 2, 2019, Soto-Leon and the buyer met at a location near the Blair E. Batson Hospital in Jackson where Soto-Leon provided the buyer with methamphetamine and heroin. Williams had assisted the buyer and Soto-Leon by giving them directions to the place where they met. Lab tests later confirmed that Soto-Leon had provided 414.7 grams of methamphetamine which was 99% pure and 424.2 grams of heroin.
On May 3, 2019, Soto-Leon and the buyer met again at a location in Pearl, Mississippi, where Soto-Leon again gave the buyer methamphetamine and heroin. Lab tests later confirmed that Soto-Leon had provided 772.4 grams of methamphetamine which was 98% pure and two containers of heroin containing 344.6 grams heroin and 228.8 grams of heroin. Once the second batch of controlled substances were given to the buyer, law enforcement immediately arrested Soto-Leon. Williams was arrested a few days later.
In total, Soto-Leon and Williams conspired to sell and sold 2.6 pounds of methamphetamine and 2.1 pounds of heroin to the undercover DEA officer. The methamphetamine sold is a type of methamphetamine known as “ICE” due to its purity.
The defendants were indicted and pled guilty before Judge Wingate on October 18, 2019. Edgar Soto-Leon remains in federal custody and is awaiting sentencing.
The case was investigated by the DEA, the Hinds County Sheriff’s Department, the Jones County Sheriff’s Department, the Pearl Police Department, and the Richland Police Department. The case is being prosecuted by Assistant United States Attorney Dave Fulcher.
El Salvadoran Man Pleads Guilty to Human Smuggling of Illegal Aliens; Two Illegal Aliens Sentenced for Unlawful Return After RemovalRead the Press Release
Gulfport, Miss. – Juan Andres Garcia-Hernandez, 33, a citizen of El Salvador and a legal permanent resident living in Maryland, pled guilty today before U.S. District Judge Sul Ozerden in connection with human smuggling of illegal aliens in Jackson County, announced U.S. Attorney Mike Hurst, Jere T. Miles, Special Agent in Charge of Homeland Security Investigations in New Orleans, and Michael J. Harrison, Acting Chief Patrol Agent of the Border Patrol’s New Orleans Sector.
Garcia-Hernandez will be sentenced by Judge Ozerden on October 1, 2020, at 9:30 a.m., and faces a maximum penalty of 5 years in federal prison and a $250,000 fine, as well as $5,100 in special assessments. He also faces removal proceedings to remove him from the United States.
On December 16, 2019, in Jackson County, a U.S. Border Patrol Agent conducted a traffic stop on a vehicle eastbound on Interstate-10. The agent approached the driver, Juan Andres Garcia-Hernandez. When asked for his driver’s license, Garcia-Hernandez provided a permanent resident card and said he had lost his Maryland driver's license. The agent saw six passengers in the SUV, and detected numerous signs of smuggling. He eventually determined that none of the passengers had proper documents to be legally in the United States.
All vehicle occupants were transported to the Border Patrol station in Gulfport, where the passengers were identified as four citizens of Guatemala; one citizen of Mexico; and one citizen of El Salvador. All six passengers were identified as being illegally present in the United States. Three of the six were confirmed to be illegal aliens who had been previously deported or removed from the U.S. and had knowingly returned without lawful permission.
Two illegal aliens who had been passengers of Garcia-Hernandez pled guilty and were sentenced for unlawful return after removal. Obel Juventino Miguel-Perez, 35, a citizen of Guatemala, and Ivan Sanchez-Gonzalea, 27, a citizen of Mexico, were each sentenced to “time served” (or effectively 6 months imprisonment) and one year of supervised release. They will also face Department of Homeland Security removal proceedings to remove them back to their home nations.
U.S. Attorney Hurst praised the cooperation exhibited by the U.S. Department of Homeland Security, U.S. Border Patrol, Homeland Security Investigations, the South Mississippi Metro Enforcement Team, and the Jackson County Sheriff’s Department. Assistant U.S. Attorney Stan Harris is the prosecutor for the case.
Moss Point Man Sentenced to 9 Years in Federal Prison Under Project EJECT for Armed Robbery of a BusinessRead the Press Release
Gulfport, Miss. – Antwone Malik Coleman Booker, 19, of Moss Point, was sentenced today by U.S. District Judge Sul Ozerden to 108 months in prison, followed by five years of supervised release, for armed robbery of a business and using a firearm during a crime of violence, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Booker was also ordered to pay restitution in the amount of $1,285 to victims and a $1500 fine.
On August 15, 2019, Antwone Malik Coleman Booker entered a Waffle House restaurant in Moss Point and pointed a black handgun at the cashier and demanded money. While the waitress was opening the cash register, Booker shot one round of ammunition from the firearm into the ceiling of the restaurant. After the waitress handed the money to Booker, he shot one additional round into the ceiling. Booker then fled the restaurant, but was arrested shortly thereafter.
Booker was indicted on September 10, 2019 and he pled guilty before Judge Ozerden on February 19, 2020.
The case was investigated by The Bureau of Alcohol, Tobacco, Firearms and Explosives, as well as the Moss Point, Ellisville, and Pascagoula Police Departments. It was prosecuted by Assistant U.S. Attorney Andrea Jones.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Jackson County Man Sentenced to 5 Years in Federal Prison for Possession of Firearm in Furtherance of Drug TraffickingRead the Press Release
Gulfport, Mississippi – Nicholas Brown, Jr., 25, of Jackson County, Mississippi was sentenced today by U.S. District Judge Sul Ozerden, to 60 months in federal prison, followed by 5 years of supervised release, for possession of a firearm in furtherance of a drug trafficking offense, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Brown was also ordered to pay a $5,000 fine.
On December 21, 2018, Brown was arrested on multiple, unrelated warrants. During an investigation, multiple firearms, cash and marijuana were recovered in the residence where Brown was living. Brown admitted that his fingerprints would be found on all of the firearms and that vacuum sealed bags found in the residence were from marijuana that he purchased and repackaged for sale. The investigation also revealed text messages that indicated Brown was involved in the distribution of controlled substances and photos of Brown with controlled substances and firearms.
On June 12, 2019, Brown was charged in a federal criminal indictment. He pled guilty before Judge Ozerden on December 20, 2019, to one count of possession of a firearm in furtherance of a drug trafficking crime
The case was investigated by the ATF and the Gautier Police Department. It was prosecuted by Assistant U.S. Attorney Shundral Cole.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Gulfport Man Pleads Guilty to Possession with Intent to Distribute MethamphetamineRead the Press Release
Gulfport, Miss – Xzavier Earl Damon Wilson, 24, of Gulfport, entered a guilty plea today before Senior U.S. District Judge Louis Guirola, Jr. to possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Brad L. Byerley, Special Agent in Charge of the Drug Enforcement Administration.
Wilson is scheduled for sentencing by Judge Guirola on September 24, 2020 at 10:00 a.m., and faces a minimum of 5 years and maximum of 40 years in prison. He further faces fines up to $5,000,000 and at least 5 years of supervised release.
The Harrison County Sheriff’s Department Narcotics Unit was investigating a heroin overdose and received information that Wilson was the source of supply. On September 30, 2019, during a traffic stop of Wilson, deputies found 55.15 grams of 100% pure Methamphetamine, a small amount of marijuana and a Schedule I controlled substance synthetic cannabinoid.
A search of a car at the house Wilson was observed leaving produced 27.873 grams of Heroin, 375.9 grams of pure Methamphetamine along with pills.
The Harrison County Sheriff’s Department and the Drug Enforcement Administration investigated the case. It is prosecuted by Assistant United States Attorney Annette Williams.
Two-Time Convicted Felon Pleads Guilty under Project EJECT to Illegally Possessing a FirearmRead the Press Release
Jackson, Miss – Hakeem Burnett, 30, of Jackson, pled guilty today before U.S. District Court Judge Henry T. Wingate to possessing a firearm after having been previously convicted of a felony crime, announced U.S. Attorney Mike Hurst and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
On November 15, 2019, Vicksburg Police officers and FBI Task Force officers apprehended Burnett in Vicksburg pursuant to a warrant out of Hinds County for Drug Court violations. Burnett was in possession of a firearm at the time he was apprehended. Burnett has previous convictions for house burglary and being a felon in possession of a firearm.
On January 15, 2020, Burnett was charged in a federal criminal indictment with possessing a firearm as a convicted felon. He will be sentenced on September 22, 2020 at 9:30 a.m. by Judge Wingate. He faces a statutory penalty of up to 10 years in prison and a $250,000 fine.
This case was investigated by the Vicksburg Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Bert Carraway.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Petal Woman Sentenced to 15 Years in Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
Hattiesburg, Miss – Cheri Jessica Cox, 39, of Petal, was sentenced today by Senior U.S. District Judge Keith Starrett to 180 months in prison, followed by 5 years of supervised release and a $5,000 fine, for possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michelle A. Sutphin with the Federal Bureau of Investigation in Mississippi. Cox’s federal sentence was ordered to run concurrent with the balance of her Forrest and Lamar County sentences.
From September 2018 through November 2018, in Hattiesburg, Cox sold methamphetamine on four separate occasions. During a traffic stop on December 7, 2018, by a Forrest County Sheriff’s Deputy, Cox was in possession of 2 ounces of methamphetamine. At sentencing, Cox was held responsible for 149.5 grams of methamphetamine.
Cox was originally indicted on July 24, 2019 and pled guilty before Judge Starrett on November 26, 2019.
The case was investigated by the 12th Circuit Court Narcotics Enforcement Team, the Forrest County Sheriff’s Department and the Federal Bureau of Investigation. Assistant United States Attorney Annette Williams prosecuted the case.
Moss Point Man Sentenced to 7 Years in Prison under Project EJECT for Illegally Possessing a Firearm as a Convicted FelonRead the Press Release
Gulfport, Miss. – Keswick Cardero Titus, 28, of Moss Point, was sentenced Monday by U.S. District Judge Sul Ozerden to 84 months in prison, followed by three years of supervised release, for possession of a firearm by a convicted felon, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Titus also was ordered to pay a $3,000 fine.
On April 10, 2019, a Moss Point Police officer approached a vehicle at a car wash in Moss Point whereupon the officer smelled marijuana coming from the vehicle. There were two men standing near the vehicle. As the officer approached, the men ran to the vehicle and drove away rapidly. The officer gave chase in his police car, and attempted a traffic stop by activating his blue lights. After pulling into a restaurant parking lot, the driver fled on foot. The passenger, who did not flee, was Keswick Cardero Titus. The South Mississippi Metro Enforcement Team arrived to provide back-up. The vehicle’s window was down and the officer, who continued to smell marijuana, looked inside and saw a firearm and marijuana protruding from a bag in the front passenger’s area.
During a search of the vehicle, officials found a book bag on the front driver’s floorboard with about 51 grams of marijuana, two scales, and a Mississippi Identification Card registered to a person matching the description of the driver who fled. A nylon bag was found on the passenger side floorboard where Titus was seated and contained a Glock, Model 22, .40 caliber pistol, with a 50 round capacity drum magazine, about 42 grams of marijuana, a scale, and two rounds of ammunition. The firearm had been reported stolen by the George County Sheriff’s Office. The State Crime Lab confirmed that the substance seized was marijuana.
Records revealed Titus had previous convictions in 2015 in Jackson County for possession of controlled substance and possession of a weapon by a convicted felon. In 2014, he had been convicted of felony aggravated domestic violence.
Titus was indicted on August 6, 2019, and pled guilty before Judge Ozerden on December 13, 2019.
U.S. Attorney Hurst commended the coordinated investigation by ATF, the South Mississippi Metro Enforcement Team, the Jackson and George County Sheriff’s Offices, and the Moss Point Police Department. The case was prosecuted by Assistant U.S. Attorney Stan Harris.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Jackson Man Pleads Guilty under Project EJECT to Methamphetamine TraffickingRead the Press Release
Jackson, Miss. – Cedrick Tillman, 36, of Jackson, pled guilty today before U.S. District Judge Henry T. Wingate to possessing with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
Between January and March 2019, an individual made three purchases of methamphetamine from Tillman. On August 6, 2019, Tillman was charged in a federal indictment with possessing with intent to distribute methamphetamine.
Tillman will be sentenced by Judge Wingate on September 22, 2020 at 1:30 p.m. by Judge Wingate, and faces a statutory maximum penalty of 40 years in federal prison and a $5 million fine.
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Bert Carraway.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Hattiesburg Man Sentenced to 9 Years in Prison under Project EJECT for Trafficking MethamphetamineRead the Press Release
Hattiesburg, Miss. – Juan Carlos Brewster, 36, of Hattiesburg, was sentenced today by Senior U.S. District Judge Keith Starrett to 108 months in prison, followed by five years of supervised release, for possessing methamphetamine with the intent to distribute, announced U.S. Attorney Mike Hurst and Special Agent in Charge Brad Byerley with the Drug Enforcement Administration (DEA), and Special Agent in Charge Michelle Sutphin with the Federal Bureau of Investigation (FBI) in Mississippi.
On February 11, 2019, Brewster sold 224 grams of methamphetamine to an individual. Pursuant to forensic analysis by the DEA, the methamphetamine was determined to be 99% pure.
Brewster was indicted on September 25, 2019. He pled guilty before Judge Starrett on January 30, 2020.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
The Drug Enforcement Administration, the Federal Bureau of Investigation, and the Hattiesburg Police Department investigated the case. The case was prosecuted by Assistant United States Attorney Andrew W. Eichner.
Hattiesburg Man Sentenced to 8 Years in Prison Under Project EJECT for Illegally Possessing Firearm and Possessing Methamphetamine with Intent to DistributeRead the Press Release
Hattiesburg, Miss. – Brian McIver, 49, of Hattiesburg, was sentenced today by Senior U.S. District Judge Keith Starrett to 96 months in prison, followed by 5 years of supervised release, for being a felon in possession of a firearm, and possessing methamphetamine with the intent to distribute, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michelle A. Sutphin with the Federal Bureau of Investigation in Mississippi. McIver was also ordered to pay a $7,500 fine.
On April 29, 2019, during a traffic stop on the campus of Forrest General Hospital, McIver was found in possession of a firearm as well as methamphetamine. The methamphetamine was co-located with a scale. McIver was previously convicted of felonious possession of a controlled substance (methamphetamine) in Forrest County in 2007.
McIver was indicted on September 25, 2019. He pled guilty before Judge Starrett on December 17, 2019.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
The Federal Bureau of Investigation, the Mississippi Bureau of Narcotics, and Forrest General Hospital Department of Public Safety Campus Police investigated the case. The case was prosecuted by Assistant United States Attorney Andrew W. Eichner.
Harrison County Man Sentenced to Two Years in Prison for Possession of a Firearm by a Person Convicted of Domestic ViolenceRead the Press Release
Gulfport, Miss. – Paul Alford Thibodeau, Jr., 38, a resident of Harrison County, was sentenced today by U.S. District Judge Sul Ozerden to 24 months in prison, followed by three years of supervised release, for possession of a firearm by a person convicted of domestic violence, announced U.S. Attorney Mike Hurst and Special Agent-in-Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Thibodeau was also ordered to pay a $3,000 fine. Thibodeau pled guilty before Judge Ozerden on December 20, 2019.
On January 5, 2019, Harrison County Sheriff’s Department Deputies responded to a domestic disturbance call on Borzik Road in the Saucier Community where a woman was being accosted. When deputies arrived, they observed Paul Alford Thibodeau, Jr., exiting the rear of the residence and hiding underneath the house. Thibodeau was subsequently secured by deputies, who located a Ruger, Model Mark III, .22 caliber pistol, under the house in the location where they observed Thibodeau hiding. The firearm had a 10-round magazine attached to it.
While the pistol was unloaded, a Sheriff’s Department Sergeant noticed .22 ammunition spread on the kitchen table matching the caliber of the pistol. A criminal history check revealed that Thibodeau had a prior felony conviction and deputies arrested him for being a felon in possession of a firearm. Thibodeau had a 2013 felony conviction in Kansas for aggravated failure to appear, and a 2014 misdemeanor offense for domestic battery.
Harrison County officials alerted the Federal Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). ATF agents also determined that Thibodeau had been using methamphetamine on the day that Harrison County Deputies arrested him.
U.S. Attorney Hurst commended the coordinated investigation by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and by the Harrison County Sheriff’s Department. The case was prosecuted by Assistant U.S. Attorney Stan Harris.
Harrison County Man Sentenced to One Year in Prison for Possession with Intent to Distribute CocaineRead the Press Release
Gulfport, Miss – Paul David Graves, Jr., 49, of Moss Point, was sentenced today to 12 months in prison, followed by three years of supervised release with 6 months of home confinement, for possession with intent to distribute cocaine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco Firearms and Explosives. Graves was also ordered to pay a $3,000 fine.
In October 2018, Graves sold cocaine on three occasions, totaling 87 grams, at a home in Gulfport, for $3,600.
The Bureau of Alcohol Tobacco and Firearms investigated the case. The case was prosecuted by Assistant United States Attorney Annette Williams.
Florida Man Sentenced to over Ten Years in Prison for Cocaine ConspiracyRead the Press Release
Jackson, Miss. – Hector Miguel De Jesus Rijos, 28, most recently of Orlando, Florida, was sentenced today by Senior U.S. District Judge Louis Guirola, Jr. to 128 months in federal prison, followed by 5 years of supervised release, for conspiring to possess with intent to distribute 5 kilograms or more of a mixture or substance containing a detectable amount of cocaine, announced U.S. Attorney Mike Hurst and Jere T. Miles, Special Agent in Charge of Homeland Security Investigations in New Orleans. De Jesus Rijos was also ordered to pay a $5,000 fine.
De Jesus Rijos was arrested after he traveled from Florida to Gulfport, Mississippi to attempt to purchase multiple kilograms of cocaine from an individual. At the time of his arrest, De Jesus Rijos was found with $100,000.00 cash in his vehicle.
On January 30, 2020, De Jesus Rijos pled guilty to one count of conspiring to possess with intent to distribute 5 kilograms or more of a mixture or substance containing a detectable amount of cocaine.
The case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorneys Shundral Cole and Jonathan Buckner.
Doctor and Nurse Sentenced for Conspiracy to Commit Health Care Fraud in Compounding Pharmacy SchemeRead the Press Release
Jackson, Miss. – Dr. Thomas Edward Sturdavant, M.D., 56, of Cordova Tennessee, was sentenced Monday and Freda Cal Covington, RN, 55, of Hattiesburg, was sentenced today by Senior U.S. District Judge Keith Starrett for their roles in a conspiracy to commit health care fraud, announced U.S. Attorney Mike Hurst, Special Agent in Charge Michelle Sutphin of the Federal Bureau of Investigation (“FBI”) in Mississippi, and Special Agent in Charge Cyndy Bruce of the U.S. Department of Defense’s Criminal Investigative Service’s (“DCIS”) Southeast Field Office.
Sturdavant was sentenced to 24 months in federal prison, followed by three years of supervised release, and ordered to pay a monetary judgment of $160,000, along with restitution in the amount of $1,628,409. Covington was sentenced to 18 months in prison, followed by three years of supervised release. Co-defendant Dr. Shahjahan Sultan was sentenced on June 16, 2020 to 48 months in prison for his involvement in the conspiracy.
Beginning around May 2014, Sultan entered into a contract with a pharmacy located in Jackson County, Mississippi. Pursuant to the contract, Sultan agreed to prescribe individuals expensive compound medications in exchange for the pharmacy agreeing to pay Sultan 35% of the reimbursements it received for the prescriptions Sultan authorized.
In September 2014, Dr. Sultan offered to pay Dr. Sturdavant $900,000 to perform telemedicine services and prescribe more expensive compounded medications that had no medical effectiveness. Dr. Sturdavant also signed more than fifty prescriptions for the compounded medications for individuals he did not examine. As a nurse, Covington helped further the conspiracy by identifying individuals in places like Jones County, Mississippi who had insurance that covered the expensive compounded medications. She conducted cursory physical examinations of patients at places like gas stations and public playgrounds and falsified patient assessments for patients she knew did not need the expensive compounded medications.
Sturdivant pled guilty before Judge Starrett on November 21, 2019, and Covington pled guilty on October 15, 2019.
Fallon Page, another nurse, pled guilty on November 21, 2019, to mail fraud for her involvement with having the unnecessary compound medications shipped to patients by the pharmacy. She will be sentenced by Judge Starrett on July 7, 2020.
The case was investigated by the FBI and DCIS. Assistant Chief Dustin M. Davis and Trial Attorney Sara E. Porter of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kathlyn R. Van Buskirk of the Southern District of Mississippi prosecuted the case.
Brandon Man Charged with Threat Against Member of Congress and StaffRead the Press Release
Jackson, Miss. – Newton Wade Townsend, 52, of Brandon, Mississippi, was indicted Tuesday by a federal grand jury and charged with making a threat against public officials, announced U.S. Attorney Mike Hurst and U.S. Capitol Police Chief Steven Sund.
On June 1, 2020, Townsend placed a phone call to the office of a Member of Congress and threatened to kill the Congressman and his African-American staffers.
“A violent threat against a public official is a serious federal crime. The United States Attorney’s Office will continue to protect victims, prosecute those fueled by hate who seek to intimidate and terrorize others, and always ensure that justice is done,” said U.S. Attorney Mike Hurst.
“The mission of the United States Capitol Police is to protect the Congress, the U.S. Capitol, and all who work and visit here. Our special agents did an excellent job in investigating this case, and I appreciate the partnership of our law enforcement partners and the U.S. Attorney’s Office throughout this entire process,” said Chief Sund.
Townsend will be arraigned tomorrow, June 25, 2020, at 2:30 p.m. before U.S. Magistrate Judge Keith Ball. Chief U.S. District Judge Daniel P. Jordan, III has been assigned the case. Assistant U.S. Attorney Meghan M. McCalla is prosecuting the case.
The public is reminded that an indictment is merely a charge and should not be considered as evidence of guilt. Every defendant is presumed innocent until proven guilty in a court of law.
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Pass Christian Man Pleads Guilty to Trafficking FentanylRead the Press Release
Gulfport, Miss – Carter Tranh Tran, 43, of Pass Christian, entered a guilty plea yesterday before U.S. District Judge Sul Ozerden to possession with intent to distribute fentanyl, announced U.S. Attorney Mike Hurst and Special Agent in Charge Brad Byerley with the Drug Enforcement Administration (“DEA”).
In 2018, DEA agents were investigating Tran when Tran sold what was purported to be 100 pills of Percocet and 128 pills of Adderall in the parking lot of a Biloxi nightclub. When tested by the DEA lab, the purported Percocet turned out to be methamphetamine and the purported Adderall was actually 56.76 grams of fentanyl. The DEA estimates that fentanyl is lethal in the two milligrams range; therefore, this was enough fentanyl to kill approximately 28,000 people. When DEA arrested Tran, they recovered 14 pounds of marijuana from his home and an additional 13 pounds of marijuana from his business in Gulfport.
Tran will be sentenced by Judge Ozerden on September 28, 2020 at 10:00 a.m., and faces a maximum penalty of 20 years in prison and a $1,000,000 fine.
The Gulfport Police Department and the Drug Enforcement Administration investigated the case. Assistant United States Attorney Annette Williams is prosecuting the case.
Poplarville Man Sentenced to 5 Years in Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
Hattiesburg, Miss – Nakia Trotter, 45, of Poplarville, was sentenced today by Senior U.S. District Judge Keith Starrett to 60 months in prison, followed by five years of supervised release, for possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Brad L. Byerley with the Drug Enforcement Administration (DEA). Trotter was also ordered to pay a $2,500 fine.
On November 28, 2018, Trotter sole 447.9 grams of methamphetamine to an individual at a grocery store in Hattiesburg. Trotter was indicted on July 24, 2019 for possession with intent to distribute methamphetamine. He pled guilty before Judge Starrett on February 5, 2020.
The case was investigated by the DEA and prosecuted by Assistant United States Attorney Shundral H. Cole.
Mobile Man Sentenced to over 3 Years in Prison for Illegal Possession of a FirearmRead the Press Release
Gulfport, Miss – Nathan Andrew Chilton, 43, of Mobile, Alabama, was sentenced today by U.S. District Judge Sul Ozerden to 42 months in prison, followed by 3 years of supervised release, for being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Chilton was also ordered to pay a $3,000 fine.
During an investigation, the Jackson County Sheriff’s Office discovered that Chilton, a previously convicted felon, had pawned a Smith and Wesson, Model Bodyguard, .380 caliber pistol at a pawn shop in Pascagoula, Mississippi on February 25, 2019. Chilton’s previous conviction was for possession of cocaine in Mobile County, Alabama, on January 25, 2007.
On August 6, 2019, Chilton was charged in a federal criminal indictment. He pled guilty before Judge Ozerden on December 12, 2019.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Shundral H. Cole.
Two Plead Guilty in Illegal Alien Smuggling Operation; Three Illegal Aliens Sentenced for Unlawful Return After RemovalRead the Press Release
Gulfport, Miss. – Jose Ramon Hernandez-Reyes, 33, an illegal alien from Mexico, and Modesto Alvarado, 18, a United States citizen living in Houston, Texas, pled guilty before Senior U.S. District Judge Louis Guirola, Jr. in connection with illegal alien smuggling in Harrison County, announced U.S. Attorney Mike Hurst, Jere T. Miles, Special Agent in Charge of Homeland Security Investigations in New Orleans, and Michael J. Harrison, Acting Chief Patrol Agent of the Border Patrol’s New Orleans Sector.
Hernandez-Reyes pled guilty on June 4, 2020, to illegal transportation or moving of an alien. He will be sentenced by Judge Guirola on August 26, 2020 at 10:00 a.m. He faces a maximum penalty of 5 years in federal prison, a $250,000 fine, $5,100 in special assessments, and proceedings to remove him from the United States. Alvarado pled guilty on June 17, 2020, to misprision of a felony, and will be sentenced on September 15, 2020, at 10:00 a.m. He faces a maximum penalty of 3 years in federal prison and a $250,000 fine.
Additionally, three illegal aliens who had been passengers of Hernandez-Reyes and Alvarado pled guilty and were sentenced for unlawful return after removal. Elias Delgado-Ortiz, 19, a citizen of Mexico; Jose Ernaides Aldana-Hernandez, 42, a citizen of El Salvador; and Orbin Noel Gomez-Suarez, 24, a citizen of Honduras, all pled guilty and were sentenced earlier this month to time served (effectively 6 months). They were also sentenced to one year of supervised release, and face Department of Homeland Security proceedings to remove them back to their home nations.
On December 4, 2019, an agent of the South Mississippi Metro Enforcement Team, who also is a City of Gautier Police Officer, conducted a traffic stop on a white Dodge Caravan on Interstate 10 eastbound in Jackson County. After making the traffic stop, the agent found that the driver, Modesto Alvarado, was a U.S. citizen who spoke fluent English, but did not have a valid driver’s license. Including the driver, nine people were in the minivan, which was more than the vehicle was designed to carry or had seat belts to secure. The agent believed a smuggling event was taking place, and notified the U.S. Department of Homeland Security, Blue Lightening Operations Center, in Gulfport, and all occupants were transported to the Gautier Police Department for initial processing.
Homeland Security Investigations special agents and task force agents responded to Gautier to interview the occupants. None of the nine minivan occupants had proper identification documents and eight were found to be illegally present in the United States. After interviewing all occupants, it was determined that seven passengers were being smuggled from Houston, Texas, to different locations throughout the United States. One of the two drivers (who rented the minivan) was Hernandez-Reyes who was determined to be the brother-in-law of Modesto Alvarado. Three of their passengers, Delgado-Ortiz, Aldana-Hernandez, and Gomez-Suarez were determined to have been lawfully deported or removed from the United States, and to have unlawfully returned to the U.S. after their removal.
U.S. Attorney Hurst praised the cooperation exhibited by the Department of Homeland
Security, United States Border Patrol, Homeland Security Investigations, the South Mississippi Metro Enforcement Team, the Jackson County Sheriff’s Department, and the City of Gautier Police Department. Assistant United States Attorney Stan Harris is the prosecutor for the case.
Pearl River County Man Pleads Guilty to Failing to Register as Sex OffenderRead the Press Release
Gulfport, Miss. – Nathanael Cecil Hall III, 37, of Pearl River County, Mississippi, pled guilty yesterday before U.S. District Judge Sul Ozerden to failing to register as a sex offender under the Sex Offender Registration and Notification Act (SORNA), also known as the Adam Walsh Act, announced U.S. Attorney Mike Hurst and U.S. Marshal Mark Shepherd for the Southern District of Mississippi.
Hall will be sentenced by Judge Ozerden on September 24, 2020, at 10:30 a.m. in Gulfport. He faces a maximum penalty of 10 years in prison, a $250,000.00 fine, and 5 years to life of supervised release.
In 2006, Hall was convicted of “Possession of Photographs, Film or other Representation that Knowingly Includes Sexual Conduct of a Child” in Hillsborough County, Florida. As part of his sentence, Hall was required to register as a sex offender. He also was required to notify/register with Florida officials if he moved away from the State of Florida.
In March 2020, Hall did not appear in person for his scheduled sex offender registration in Florida, and it was determined that he had absconded. A full extradition arrest warrant was issued by the Hillsborough County Sheriff’s Office for failure to renew his sex offender registration. The U.S. Marshals Service in the Middle District of Florida was advised by the Florida Department of Law Enforcement that Hall had absconded from supervision and appeared to have departed the State of Florida.
In April 2020, the U.S. Marshals obtained information showing Hall had been in Picayune, Mississippi, during January and February 2020. After an investigation, members of the USMS Gulf Coast Regional Fugitive Task Force traveled to Picayune on May 8, 2020, to locate and arrest Hall. Hall was arrested without incident based on the Florida State Arrest Warrant. He was transported to the Pearl River County Sherriff’s Office, where he was charged with failing to register as a sex offender in Mississippi. He was held at the Pearl River County Adult Detention Facility, until he was released to the U.S. Marshals Service after a federal criminal complaint and arrest warrant were issued. A multi-jurisdiction investigation, coordinated by the U.S. Marshals, showed that Hall failed to fulfill his registration requirement in Florida, and traveled interstate to Mississippi.
Law enforcement records document that Nathanael Cecil Hall, III, also has been known by, or has had attributed to him, the following names or name variations: Nathanael Cecil Paul Hall, III, Nathanael Hall, and Satanica.
U.S. Attorney Hurst commended the coordinated investigation conducted by the U.S. Marshals Service, the Mississippi Department of Public Safety, the Pearl River County Sheriff’s Department, the Florida Department of Law Enforcement, and the Hillsborough County Sheriff’s Department in Florida. The case is being prosecuted by Assistant U.S. Attorney Stan Harris.
Hattiesburg Drug Traffickers Get Significant Sentences in Federal Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
Hattiesburg, Miss – Justin Williams, 30, of Hattiesburg, was sentenced yesterday by Senior U.S. District Judge Keith Starrett to 84 months in prison, followed by five years of supervised release, for conspiracy to possess with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Jere T. Miles with Homeland Security Investigations in New Orleans.
Williams’ co-defendant, Rodney Renchie, 31, also of Hattiesburg, was sentenced by Judge Starrett last week, on June 11, 2020 to serve 240 months in federal prison, followed by five years of supervised release. Both defendants were also ordered to pay a $5,000 fine.
“These individuals put kids, families, neighbors and entire communities at a significant risk of harm by slinging this poison throughout the Hattiesburg area. I applaud our HSI agents and our federal prosecutors for taking these criminals off our streets, as their hard work has literally saved people’s lives,” said U.S. Attorney Hurst.
“These sentences reflect the seriousness of the charges and the danger this drug poses to our communities,” said Jere T. Miles, Special Agent in Charge of HSI New Orleans. “It is also a gratifying outcome for the diligent work our special agents and law enforcement partners put into keeping our neighborhoods and community members safe.”
On June 19, 2019, HSI agents discovered that Renchie and Williams had sold 1.7 kilograms of methamphetamine, commonly known as “ICE,” to individuals in the parking lot of a hotel on Hardy Street in Hattiesburg. When HSI agents arrived to arrest Renchie and Williams, Renchie attempted to flee in his vehicle, but backed into another car in the parking lot. Williams attempted to flee on foot and threw a bag containing methamphetamine as he ran from agents. Williams was apprehended a short time later.
On July 10, 2019, Williams and Renchie were charged in a federal criminal indictment with conspiracy to possess with intent to distribute methamphetamine. Williams pled guilty before Judge Starrett on October 3, 2019, and Renchie pled guilty on December 5, 2019.
The case was investigated by Homeland Security Investigations and prosecuted by Assistant United States Attorney Shundral H. Cole.
Hancock County Woman Sentenced to Almost Five Years in Prison for Selling a Firearm to a FelonRead the Press Release
Gulfport, Miss. – Janette Marie Asplund, 36, of Hancock County, was sentenced today by Senior U.S. District Judge Louis Guirola Jr. to 57 months in federal prison, followed by 3 years of supervised release, for knowingly selling a firearm to a convicted felon, announced U.S. Attorney Mike Hurst and Special Agent-in-Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Asplund was also ordered to pay a $2,500 fine.
In July 2019, Asplund knowingly sold a shotgun to a person who she knew was a convicted felon. Federal law specifically prohibits convicted felons from possessing firearms or ammunition. Asplund was indicted on July 24, 2019, and pled guilty before Judge Guirola on January 23, 2020.
U.S. Attorney Hurst commended the investigation by the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case was prosecuted by Assistant U.S. Attorney Stan Harris.
Jackson County Man Pleads Guilty to Dealing in Firearms Without a LicenseRead the Press Release
Gulfport, Miss. – Waso Nam Flanagan, 53, a resident of Jackson County, pled guilty yesterday before U.S. District Judge Sul Ozerden, to willfully engaging in the business of dealing in firearms without a license, announced U.S. Attorney Mike Hurst, and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Flanagan will be sentenced by Judge Ozerden on September 24, 2020, at 9:30 a.m. and faces a maximum penalty of 5 years in prison and a $250,000 fine.
On September 27, 2019, a Jackson County Sheriff’s Office Investigator received information that Flanagan was at a Biloxi address in Jackson County, near the border of Jackson and Harrison Counties. The investigator had knowledge of an outstanding felony warrant for Flanagan’s arrest for possession of stolen firearms, and that Flanagan was on bond for an aggravated assault charge at the time. When investigators found and arrested Flanagan, they also found baggies of marijuana and methamphetamine.
The ATF determined that Flanagan, who was a regular user of narcotics, had been selling firearms and drugs. Flanagan used multiple pawn shops in Jackson and Harrison counties to pawn or sell firearms he bought “off of the street,” and the ATF learned that two of the firearms he purchased on the street, and then sold, had been stolen.
ATF examined firearms pawned by Flanagan to local area pawn shops. When Flanagan pawned firearms, he did not go back to redeem the pawns and was effectively selling the firearms. ATF also obtained transaction documents and, determined that the firearms had traveled in interstate commerce, and were in good condition. The ATF also researched official records and confirmed that Flanagan had never had a license to deal in firearms.
U.S. Attorney Hurst praised the cooperation of the ATF and the Jackson County Sheriff’s Office. Assistant United States Attorney Stan Harris is the prosecutor for the case.
Canton Man Sentenced to Almost Two Years in Prison for Illegal Possession of an Unregistered Firearm SilencerRead the Press Release
Gulfport, Miss. – Kevin Martin Gentry, 38, of Canton, Mississippi, was sentenced today by U.S. District Judge Sul Ozerden to 23 months in prison, followed by 3 years of supervised release, for unlawful possession of a firearm silencer not registered in the National Firearms Registration and Transfer Record, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). .
On October 9, 2019, in Long Beach, Mississippi, police responded to a report of an aggravated assault in progress at a local apartment. Officers made contact with the defendant, Kevin Martin Gentry, who was armed with a knife. Gentry was disarmed and detained. Further investigation revealed that Gentry had initiated the altercation by forcing himself into the apartment residence displaying a knife. Long Beach Police officers located Gentry’s vehicle parked near the crime scene, and detectives were granted a search warrant from Long Beach Municipal Court. During execution of the search warrant, police found a short-barreled rifle with a silencer.
ATF examined the recovered firearm and measured its barrel length and overall length. The measurements revealed a barrel length of approximately 7 ¾ inches and overall length of approximately 26 ¼ inches. Such a short-barreled rifle and silencer both would require federal registration. The ATF investigation revealed that the firearm was not manufactured in Mississippi, and neither the short-barreled rifle nor the silencer were registered as required in the National Firearms Registration and Transfer Record.
Gentry admitted to sole possession of the short-barreled rifle and the silencer. He also admitted to making the silencer and to adapting the silencer and short-barreled rifle so that the silencer was threaded to fit onto the rifle.
Gentry was indicted by a federal grand jury on November 6, 2019 and pled guilty before Judge Ozerden on February 20, 2020.
U.S. Attorney Hurst commended the coordinated investigation by the ATF and the Long Beach Police Department. The case was prosecuted by Assistant U.S. Attorney Stan Harris.
Rankin County Man Pleads Guilty to Making and Passing Counterfeit CurrencyRead the Press Release
Jackson, Miss. – Purvis Dustin Ward, 33, of Rankin County, Mississippi, pled guilty today before U.S. District Judge Carlton W. Reeves to one count of making counterfeit currency and one count of passing counterfeit currency, announced U.S. Attorney Mike Hurst and Resident Agent in Charge Shawn Wolfe of the United States Secret Service.
An investigation by the Rankin County Sheriff’s Office, the Pelahatchie Police Department and the Brandon Police Department identified Ward as an individual who had been making and passing counterfeit United States currency. On November 2, 2019, several residents of Rankin County reported that a man and a woman had been making purchases at garage sales using counterfeit currency. One of the local residents took a picture of the suspects’ car and provided a tag number and description to law enforcement. Officers from the Pelahatchie Police Department later stopped the vehicle. During the stop, officers observed what appeared to be counterfeit United States currency in plain view in the vehicle. Ward and another individual were arrested for possession of counterfeit currency.
Rankin County Deputies obtained a search warrant for Ward’s residence and located counterfeit currency, uncut sheets of counterfeit currency as well as two computers, three printers, specialty ink and paint, all of which was used to produce counterfeit currency.
Ward will be sentenced by Judge Reeves on September 15, 2020, and faces a maximum penalty of up to 40 years in federal prison and $500,000 in fines.
The case was investigated by the United States Secret Service, the Rankin County Sheriff’s Office, the Pelahatchie Police Department and the Brandon Police Department. The case is being prosecuted by Assistant United States Attorney Dave Fulcher.
Madison Doctor Sentenced to Four Years in Federal Prison for Conspiracy to Commit Health Care Fraud in Compounding Pharmacy SchemeRead the Press Release
Jackson, Miss. – Dr. Shahjahan Sultan, M.D., 37 of Madison, was sentenced today by Senior U.S. District Judge Keith Starrett to 48 months in federal prison, followed by 3 years of supervised released, for conspiring to commit health care fraud, announced U.S. Attorney Mike Hurst, Special Agent in Charge Michelle Sutphin of the Federal Bureau of Investigation (“FBI”) in Mississippi, and Special Agent in Charge Cyndy Bruce of the Defense Criminal Investigative Service’s (“DCIS”) Southeast Field Office. Sultan was also ordered to pay restitution in the amount of $4,102,634.65 to Express Scripts (TRICARE), $582,280.79 to CVS Caremark and $115,611.03 to Catamaran. The Court further imposed a money judgment of more than $2.3 million.
In May 2014, Sultan entered into a contract with a pharmacy located in Jackson County, Mississippi. Pursuant to the contract, Sultan agreed to prescribe individuals expensive compound medications in exchange for the pharmacy agreeing to pay Sultan 35% of the reimbursements it received for the prescriptions Sultan authorized. Health care benefit programs, including TRICARE, were billed for the compounded medications. Sultan employed others who identified individuals in places like Jones County, Mississippi, who had insurance that covered the expensive compounded medications. Sultan met with the insured individuals over telemedicine video-chat sessions. However, during such meetings, he did not perform thorough examinations of the individuals and did not determine the medical necessity of the compounded medications he prescribed. Sultan knew that some of the added ingredients in the compounded medication were not effective and were added solely to increase the reimbursement value. On occasion, Sultan called in compounded medications for individuals he had not previously examined.
From May 2014 through January 2015, Sultan and his co-conspirators prescribed millions of dollars of unnecessary compounded medications to patients. In total, the Court held Sultan responsible for causing over $8 million in intended loss to health care providers. Sultan pled guilty before Judge Starrett on November 21, 2019.
Thomas Edward Sturdavant, M.D., 56, of Kingsport, Tennessee, Freda Cal Covington, R.N., 54, of Hattiesburg, Mississippi, and Fallon Deneem Page, R.N., 36, of Soso, Mississippi were all indicted along with Dr. Sultan in June 2019. Dr. Sturdavant will be sentenced next Monday, June 22, 2020. Nurse Freda Cal Covington is set for sentencing on June 24, 2020, and Nurse Fallon Page will be sentenced on July 7, 2020.
The case was investigated by the FBI and DCIS. Assistant Chief Dustin M. Davis and Trial Attorney Sara E. Porter of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kathlyn R. Van Buskirk of the Southern District of Mississippi prosecuted the case.