District of South Carolina
Press releases recorded for this federal judicial district.
South Carolina Inmate Sentenced to Federal Prison for Role in Military Sextortion SchemeRead the Press Release
CHARLESTON, SOUTH CAROLINA — Darnell Khan, 39, was sentenced to seven years in federal prison after pleading guilty to his role in a scheme to extort and defraud military members that was operated from the South Carolina Department of Correction (SCDC).
Evidence presented to the Court showed that while serving a 25-year sentence in SCDC for voluntary manslaughter and attempted armed robbery, Khan smuggled smartphones into SCDC and used the internet to join internet dating websites. Once on the internet dating websites, Khan would pose as a young woman, target young men who were in the military, and solicit nude photographs. Once the photographs were received, Khan and others posed as the father of the young woman, claimed that the young woman was underage, and accused the military member of being in possession of child pornography. Khan and others then threatened to have the military members arrested or dishonorably discharged unless they paid money.
From January 2017 to July 2017, due to this extortion, service members transferred funds to Khan totaling $62,500.71, which investigators traced to at least 40 victims.
“Mr. Khan knowingly used deceit to prey on those who serve our nation. This is inexcusable,” said U.S. Attorney Adair F. Boroughs. “This case also shows that nothing good comes from smartphones in prison. Inmates use them to continue criminal activity behind bars, and we hope this prosecution helps state officials in their efforts to eliminate and disable contraband phones in prison.”
“The Defense Criminal Investigative Service will not tolerate these organized criminals targeting our service members,” said Special Agent in Charge Christopher Dillard, Department of Defense, Office of Inspector General, Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office. “We will continue to work with our law enforcement partners to protect our Warfighters from sextortion crimes and hold these criminals accountable.”
“Mr. Khan deserves to be held fully accountable for his leading role in this reprehensible and criminal network targeting military service members,” said Special Agent in Charge Erin Carmichael of the Naval Criminal Investigative Service (NCIS) Carolinas Field Office. “NCIS will not tolerate the existence of sextortion rings like this that degrade the readiness of our military force. NCIS thanks the U.S. Attorney’s Office and our law enforcement partners for their substantial efforts to keep our service members and their families safe from harm.”
“This is another in a long line of cases that would be stopped if we had the ability to jam cellphone signals in state prisons,” said Bryan Stirling, Director of SCDC. “I am calling on Congress to support a hearing on the Cellphone Jamming Reform Act and allow states to use technology to stop inmates from using these illegal phones to prey on innocent victims.”
United States District Judge Richard M. Gergel sentenced Khan to 84 months in federal prison, to be followed by a three-year term of court-ordered supervision. This sentence will be served after Khan completes his 25-year state prison sentence. There is no parole in the federal system.
This case was investigated by DCIS, NCIS, and SCDC. Assistant U.S. Attorneys Katherine Orville and Amy Bower prosecuted the case.
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Myrtle Beach Resort Manager Indicted for Fraud Scheme Totaling Nearly $1 MillionRead the Press Release
FLORENCE, SOUTH CAROLINA — A federal grand jury in Florence returned a five-count indictment against Troy Benjamin Bittner, 53, of Myrtle Beach, for defrauding a local resort out of nearly $1 million during the pandemic.
The indictment alleges that Bittner, in his role as manager for Carolina Pines RV Resort, used his access to the company’s credit card reservation system to commit wire fraud. Specifically, although certain guests stayed at Carolina Pines, Bittner would nonetheless use the electronic payment system to initiate a refund as if those guests had cancelled their reservations. According to the indictment, during the Coronavirus pandemic it was not uncommon for guests to cancel reservations. However, rather than direct the refunds to the credit cards on file, Bittner instead issued the refunds to his own various personal credit cards. Over the 26-month window of Bittner’s alleged scheme, he received more than $800,000 in fraudulent refunds at the expense of Carolina Pines.
Bittner faces a maximum penalty of 20 years in federal prison, in addition to forfeiture and restitution.
The case is being investigated by the U.S. Secret Service, Federal Bureau of Investigation, and the U.S. Postal Inspection Service. Assistant U.S. Attorney Derek A. Shoemake is prosecuting the case.
U.S. Attorney Adair F. Boroughs stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty.
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Man Who Impersonated DOJ Investigator to Extort Mt. Pleasant Woman for Sex and Money Sentenced to Ten YearsRead the Press Release
CHARLESTON, SOUTH CAROLINA — Brian Lydell Robinson, 39, of Warrenville, was sentenced to ten years in federal prison after pleading guilty to extortion and impersonating an officer of the United States.
Evidence presented to the Court showed that beginning in the Spring of 2019, Robinson used a dating app to contact a Mount Pleasant woman and solicit commercial sex. Using multiple telephone numbers controlled from a single device, Robinson then posed as a Department of Justice (DOJ) investigator working for the U.S. Attorney’s Office investigating a politically connected sex trafficker. Robinson threatened the victim by telling her that she would be prosecuted for prostitution, which would ruin her reputation, unless she assisted in an undercover operation against the sex trafficker who was, in fact, Robinson. In truth there was no investigation, and Robinson extorted money and sex from his victim by posing as the sex trafficker under investigation, the investigator, and a defense lawyer.
“The Defendant terrorized and exploited his victim through extreme deception and intimidation, and he deserves to go to prison,” said U.S. Attorney Adair F. Boroughs. “We will not tolerate predators posing as law enforcement officers. Those who impersonate federal agents, or use the threat of federal prosecution, to exploit the public will encounter actual federal agents and real prosecution. If you have a question about whether a person is actually a law enforcement officer, call the agency using a publicly posted phone number and ask for verification.”
“Stopping those who pose as law enforcement to commit crimes is of utmost importance to law enforcement and the community,” said Homeland Security Investigations (HSI) Special Agent in Charge Ronnie Martinez, who oversees HSI operations in North Carolina and South Carolina. “This sentencing should send a clear message that we are on the hunt for these impostors.”’
“Impersonating an officer threatens the trust and respect law enforcement professionals work to earn every day serving our communities,” said South Carolina Law Enforcement Division (SLED) Chief Mark Keel, “SLED is proud to support the DOJ and HSI in investigations like these to ensure those who seek to prey upon our fellow citizens face the consequences.”
In outlining the scheme, the evidence presented to the Court also showed that after luring the victim across state lines and sexually exploiting her with this ruse, Robinson, acting as the sex trafficker supposedly under investigation, confronted the victim and told her that he knew that she was working for law enforcement. Robinson assured the victim that he could keep them both out of trouble through the services of a well-positioned defense attorney, but said that the victim would owe him money. After Robinson allegedly placed a call to the defense attorney, the victim was contacted by the fictitious federal agent, who claimed that his case had been temporarily suspended because of Robinson’s attorney.
Over the next seven months, Robinson extorted the victim for money to pay for non-existent legal services under the false premise that such services were needed to avoid federal prosecution. When the victim ran out of funds, Robinson extorted sex and pornographic materials from the victim in lieu of payment. The victim went to the police after Robinson demanded that she have sex with multiple men at the same time, and she became fearful that she would be abducted. Robinson has multiple prior convictions for offenses including forgery, obtaining property under false pretenses, and burglary.
United States District Judge Richard M. Gergel sentenced Robinson to 120 months imprisonment, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by HSI, SLED, and the Mount Pleasant Police Department. Assistant U.S. Attorneys Chris Schoen and Elliott B. Daniels prosecuted the case.
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Marion Man Convicted after Trial on Federal Kidnapping, Carjacking, and Murder ChargesRead the Press Release
FLORENCE, SOUTH CAROLINA — Dominique Devonah Brand, 30, of Marion, was convicted following a multi-day bench trial on all three counts charged: Kidnapping Resulting in Death, Carjacking Resulting in Death, and Using or Carrying a Firearm During and in Relation to a Crime of Violence in a Manner Constituting Murder.
Evidence presented by the Government at trial established that on Sunday, March 28, 2021, Brand entered Mary Ann Elvington’s home in Nichols, South Carolina. While inside the house, he fired a 12-gauge shotgun into the hallway floor at close range. Mr. Brand’s DNA was later found on multiple items inside Ms. Elvington’s home, including the spent, 12-gauge shotgun shell he fired, a pizza slice he apparently ate from while there, a water bottle he drank from, and a jewelry box he touched. Across the street from Ms. Elvington’s home, investigators found Mr. Brand’s blood and touch DNA inside a stolen church van that was stuck in the mud.
At about 6:11 p.m. that Sunday, Brand forced Ms. Elvington to drive him from her house to Lake Waccamaw, North Carolina, and back into South Carolina. During this trip, Mr. Brand sat behind Ms. Elvington with the shotgun. Ms. Elvington’s cell site location information showed her car was initially headed back toward her home in Nichols. But in Lake View, South Carolina, surveillance video from the Lake View Police Department captured Brand directing Ms. Elvington into the back seat of her car, moving a gun to the front seat, getting in the driver’s seat, and making a U-turn, heading away from Ms. Elvington’s home. The surveillance video showed Brand was alone with Ms. Elvington—carrying a gun—shortly before she was murdered. After leaving Lake View, Brand drove Ms. Elvington to a remote crossroads in Marion County and walked her behind the abandoned Zion Grocery store. He held the shotgun to the back of her head and pulled the trigger, executing her.
Brand then drove Ms. Elvington’s car to Marion, where he hid it behind an abandoned club. Investigators found Brand’s blood on a wooden block sitting in the driver’s seat and on a fuse puller on the ground outside the car. Ms. Elvington’s body was located the following evening, March 29, 2021. After learning he was a suspect, Brand turned himself in to authorities on March 31, 2021.
United States District Judge Sherri A. Lydon presided over the trial and will sentence Brand after receiving and reviewing a pre-sentence report that will be prepared by the United States Probation Office. Brand faces a penalty of life imprisonment on each count
The case was investigated by the Federal Bureau of Investigation (FBI) with significant assistance from the South Carolina Law Enforcement Division (SLED), Horry County Police Department, Marion County Sheriff’s Office, Marion Police Department, Lake View Police Department, and Nichols Police Department. Assistant U.S. Attorneys Everett McMillian and Katie Stoughton prosecuted the case along with Special Assistant U.S. Attorney Scott Hixson, who also serves as the Deputy Solicitor for the 15th Judicial Circuit.
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Federal Inmate Sentenced to Additional Time for Threatening Federal JudgeRead the Press Release
FLORENCE, SOUTH CAROLINA —Stanley J. Kowalewski, 50, of North Carolina, was sentenced to more than an additional year in federal prison for mailing a threatening communication to a United States District Court Judge.
Evidence obtained in the investigation revealed that following a federal jury trial in the Northern District of Georgia, Kowalewski was convicted on 22 counts related to a sophisticated fraud scheme and sentenced to more than 17 years in federal prison.
While serving that sentence in a prison in South Carolina, a federal judge received a letter that threatened to cause the women close to the judge to disappear if the judge did not grant pending motions for compassionate release (a request for a reduction in sentence and release from prison) by a certain date. Specifically, the letter stated:
“Judge [Redacted],
You have failed to do the right things. Now you make us do this. You will grant ALL pending motions in your court for compassionate release by July 2nd, 2021 at 3:00 PM or earlier. They are all to be reduced to time served with NO supervised release. They will be immediate release from prison and no delays. If not, then we will begin to disappear the women closest to you. We know where they live, work, or go to school. If you try to alert the authorities, we will know and your loved ones will disappear. Do your job and everyone will be happy and you’ll never here from us again.
A.C.B.”
The day before the threat was mailed, an individual visited Kowalewski in the low security prison where Kowalewski was then housed. When that person arrived, Kowalewski gave the visitor two envelopes, one inside the other, telling him to handle it with gloves, to not get fingerprints on it, to not ask questions, and to place it in the mail. Kowalewski called the visitor after he left and told him to hurry up and mail the letter.
At the time of the threat, Kowalewski had a motion for compassionate release pending before the victim Court, and the threat came during a time Kowalewski had directed others to conduct an aggressive campaign contacting the Court asking for that motion to be granted. Three weeks before the threat, Kowalewski said in a recorded call, “I just told everybody to double up on [the victim judge] and call twice a week and really make their life miserable.”
When the Federal Bureau of Investigation (FBI) and United States Marshal’s Service initially confronted Kowalewski, he lied about his participation in the threat and then sent out letters that provided the visitor a false story to tell agents if he was approached. If the visitor stuck with the story, Kowalewski wrote, “this will be over.”
Chief United States District Judge R. Bryan Harwell sentenced Kowalewski to serve an additional 15 months in federal prison (to be served consecutive his current sentence), with three years of court-ordered supervision to follow. There is no parole in the federal system.
This case was investigated by the United States Marshals Service with assistance from the FBI, the Federal Bureau of Prisons, and agencies in the Northern District of Georgia. Assistant U.S. Attorney Elliott B. Daniels prosecuted the case.
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South Carolina Woman Sentenced in Social Security Fraud SchemeRead the Press Release
Columbia, South Carolina – Crystal Deveaux, 61, of Eastover, was sentenced to more than a year in federal prison after pleading guilty to theft of Government funds totaling of over $258,000.00.
Evidence presented to the Court showed Deveaux unlawfully obtained Social Security Retirement Insurance Benefits (RIB) on behalf of her deceased grandmother, which she used for her own personal benefit from June 2001 through December 2020. While acting as a representative for her deceased grandmother, Deveaux failed to notify the Social Security Administration of the death and continued to cash and deposit the RIB checks she received on her grandmother’s behalf. Additionally, Deveaux caused the Social Security Administration to pay an additional $22,840.10 in Medicare premiums on behalf of the deceased grandmother. Further, Deveaux was a Supplemental Security Income (SSI) recipient herself and was wrongly paid $22,875.00 as she had unreported income; and she failed to report her husband’s Veteran’s Administration (VA) benefits, causing her to be paid another $23,751.42 by the Social Security Administration.
United States District Judge Sherri A. Lydon sentenced Deveaux to 15 months imprisonment, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system. Deveaux was ordered to pay restitution to the Social Security Administration.
The case was investigated by the Social Security Administration-Office of Inspector General, and was prosecuted by Assistant U.S. Attorney T. DeWayne Pearson.
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Philips Subsidiary to Pay over $24 Million for Alleged False Claims Caused by Respironics for Respiratory-Related Medical EquipmentRead the Press Release
WASHINGTON – Philips RS North America LLC, formerly known as Respironics Inc., a manufacturer of durable medical equipment (DME) based in Pittsburgh, Pennsylvania, has agreed to pay over $24 million to resolve False Claims Act allegations that it misled federal health care programs by paying kickbacks to DME suppliers. The affected programs were Medicare, Medicaid and TRICARE, which is the health care program for active military and their families.
The settlement resolves allegations that Respironics caused DME suppliers to submit claims for ventilators, oxygen concentrators, CPAP and BiPAP machines, and other respiratory-related medical equipment that were false because Respironics provided illegal inducements to the DME suppliers. Respironics allegedly gave the DME suppliers physician prescribing data free of charge that could assist their marketing efforts to physicians.
“Paying illegal remuneration to induce patient referrals undermines the integrity of our nation’s health care system,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “To ensure that the goods and services received by federal health care program patients are determined by their health care needs, rather than the financial interests of third parties, we will pursue any individual or entity that violates the prohibition on paying kickbacks, including DME manufacturers.”
“The people of South Carolina need to know that medical facts — not finances — drive their health care decisions,” said U.S. Attorney Adair F. Boroughs for the District of South Carolina. “Those who improperly use money and other things of value to induce business in violation of the Anti-Kickback Statute will be held accountable.”
“Paying kickbacks to medical equipment providers is misaligned with patient care and corrupts our nation’s health care programs including TRICARE,” said Special Agent in Charge Christopher Dillard for the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office. “Working closely with our law enforcement partners, DCIS will continue to investigate those who risk harming the welfare of our active-duty service members and seek to profit at the expense of the American taxpayer.”
“By paying kickbacks to obtain patient referrals, DME manufacturers are prioritizing financial incentives over patient needs, which undermines the integrity of federal health care programs," said Special Agent in Charge Tamala E. Miles for the Department of Health and Human Services, Office of the Inspector General (HHS-OIG). "HHS-OIG will continue to work tirelessly with our law enforcement partners to prevent such waste of valuable taxpayer dollars."
The Anti-Kickback Statute prohibits the knowing and willful payment of any remuneration to induce the referral of services or items that are paid for by a federal health care program, such as Medicare, Medicaid or TRICARE. Claims submitted to these programs in violation of the Anti-Kickback Statute give rise to liability under the False Claims Act.
The settlement provides that Respironics will pay $22.62 million to the United States, and in addition, will pay $2.13 million to the various states as a result of the impact of Respironics’ conduct on their Medicaid programs, pursuant to the terms of separate settlement agreements that Respironics has, or will enter into, with those states.
In addition to the civil settlement, Respironics entered into a five-year Corporate Integrity Agreement (CIA) with HHS-OIG. The CIA requires Respironics to implement and maintain a robust compliance program that includes, among other things, review of arrangements with referral sources and monitoring of Respironics’ sales force. The CIA also requires Respironics to retain an independent monitor, selected by the OIG, to assess the effectiveness of Respironics’ compliance systems.
The settlement resolves a lawsuit originally brought by Jeremy Orling, a Respironics’ employee, under the qui tam or whistleblower provisions of the False Claims Act. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. As part of this resolution, Orling will receive approximately $4.3 million of the federal settlement amount.
This settlement was the result of a coordinated effort by the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of South Carolina with assistance from the HHS-OIG and HHS Office of Investigations; DCIS; the Defense Health Agency Office of General Counsel; and the National Association of Medicaid Fraud Control Units.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was handled by Senior Trial Counsel Daniel A. Spiro of the Fraud Section of the Civil Division and Assistant U.S. Attorneys Beth Warren and Johanna Valenzuela of the District of South Carolina.
The lawsuit resolved by this settlement is captioned United States, et al., ex rel. Respiratory Care., LLC v. Respironics, Inc., et al., Case No. 2:19-cv-02913-BHH (D.S.C). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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Note: View the complaint here.
Williston Man Sentenced to 27 Years in Federal Prison for Sexual Exploitation of a Minor and Production of Child PornographyRead the Press Release
COLUMBIA, SOUTH CAROLINA —Justin Allen Chavis, 27, of Williston, was sentenced to 27 years in federal prison after pleading guilty to sexual exploitation of a minor and the production of child pornography, to be followed by 20 years of supervision and registration as a sex offender.
Evidence presented in court showed that Chavis engaged in sexual acts with two minor children, and that he produced photographs and videos of the abuse, which Chavis then distributed through the internet.
Evidence further indicated that on April 2, 2020, Chavis communicated over the internet with a person he was told was another adult interested in abusing children, but in fact he was communicating with an undercover FBI agent. The pair discussed past and future abuse of multiple children, and Chavis described himself as “active” with numerous children under the age of seven, describing specific sex acts he had coerced his victims to engage in. Chavis then began sharing photographs and videos of what appeared to be Chavis sexually abusing children he had access to.
Within one day, the Federal Bureau of Investigation (FBI) determined Chavis’s identity and obtained an arrest warrant and a federal search warrant for his residence. FBI executed the arrest and search with assistance from the Barnwell County Sheriff’s Office and the South Carolina Department of Social Services (DSS). Chavis has remained in custody since that day. FBI recovered photographs and videos of the abuse from Chavis’s phone, and Chavis made admissions regarding his conduct. Chavis ultimately pled guilty to the sexual exploitation of a minor and the production of child pornography.
United States District Judge Mary Geiger Lewis sentenced Chavis to 324 months in federal prison, to be followed by 20 years of court-ordered supervision, restitution to be paid to two victims, and Chavis will have to register as a sex offender after release. There is no parole in the federal system.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
The case was investigated by the FBI with critical assistance from the Barnwell County Sheriff’s Office and DSS. Assistant United States Attorney Elliott B. Daniels prosecuted the case.
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Man Sentenced to Two Years in Federal Prison for Wire FraudRead the Press Release
SPARTANBURG, SOUTH CAROLINA — Sung Wook Kim, also known as Paul, 36, of Lexington, was sentenced to two years in federal prison after pleading guilty to wire fraud.
Evidence presented to the Court showed that Kim used a position of trust to defraud his employer, fabricating three contracts with one of the company’s clients and fraudulently signing documents related to those contracts. Relying on Kim’s fraudulent contracts, his employer spent $2,918.962.48. Kim also made $139,250 in bonuses and increased pay as a result of the fraudulent contracts. Evidence additionally showed that Kim had falsely reported his qualifications when obtaining his employment.
United States District Judge Donald C. Coggins sentenced Kim to 24 months imprisonment, to be followed by a 3-year term of court-ordered supervision. There is no parole in the federal system. The Court ordered Kim to pay $2,918.962.48 in restitution and entered a forfeiture judgment of $139,250.
This case was investigated by the United States Secret Service. Assistant U.S. Attorney Jamie Schoen prosecuted the case.
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Jury Finds Three Rock Hill Men Guilty of Large Multi-State Drug OperationRead the Press Release
COLUMBIA, SOUTH CAROLINA —A federal jury in Columbia convicted Gabriel L’Ambiance Ingram, a/k/a “Big Shot”, a/k/a “Big Shot Rock”, a/k/a “Rock”, 33, Darrell Larod Crockett, a/k/a “Unc”, a/k/a “Croc”, 50, and Carl Michael Mann, II, a/k/a “Pike”, 39, all of Rock Hill for multiple drug and gun charges relating to a multi-state drug operation out of the Rock Hill and Charlotte, North Carolina area.
Evidence presented during the seven-day trial showed that the Federal Bureau of Investigation (FBI) and York County Multi-Jurisdictional Drug Enforcement Unit (DEU) began to investigate a group of defendants who were obtaining large amounts of cocaine, methamphetamine, heroin, and marijuana from a distributor in Southern California. Based upon the investigation, law enforcement was able to determine that members of the group were flying to California and having the drugs shipped back to the Rock Hill and Charlotte area. After the drugs were shipped back to South Carolina, the group distributed the drugs to local dealers. This group shipped more than 255 packages containing the drugs from California during a one-year time period and distributed more than five kilograms of cocaine, 280 grams or more of crack cocaine, 500 grams or more of methamphetamine, 400 grams or more of fentanyl, one kilogram or more of heroin, and more than a 1000 grams of marijuana.
Testimony at the trial showed that the group used the fentanyl to make more than 1 million counterfeit Roxicodone pills, which were sold to users in Rock Hill, Greenville, Myrtle Beach, Charlotte, and Atlanta, Ga. Nineteen defendants were charged in this case. Sixteen defendants pled guilty to their involvement.
More than 250 exhibits were entered into evidence during the trial, and more than two dozen witnesses travelled from California, Charlotte, New York, Georgia, and South Carolina to testify.
The jury ultimately convicted all of the defendants on all charges. Ingram was convicted of being involved in the conspiracy with the others. He was also convicted of possession with the intent to distribute a quantity of cocaine and heroin, possession with the intent to distribute heroin, possession with the intent to distribute marijuana, possession with the intent to distribute cocaine and crack cocaine, two counts of being a felon in possession of a firearm, and three counts of possession of a firearm in furtherance of a drug trafficking crime. Crockett was convicted of being a member of the conspiracy along with possession with the intent to distribute 28 grams or more of cocaine base. Mann was also convicted of being a member of the conspiracy along with possession with the intent to distribute crack cocaine. All of the defendants are facing a maximum of life imprisonment for their involvement.
United States District Judge Mary Geiger Lewis will sentence the defendants after receiving and reviewing a sentencing report prepared by the United States Probation Office. There is no parole in the federal system.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by the FBI, York County DEU, Bureau of Alcohol, Tobacco, Firearms and Explosive (ATF), Drug Enforcement Administration (DEA), Internal Revenue Service (IRS), Rock Hill Police Department, York County Sheriff’s Office, and Richland County Sheriff’s Department.
Assistant U.S. Attorneys William K. Witherspoon, Elliott B. Daniels, Elle E. Klein, and Special Assistant U.S. Attorney Lamar Fyall prosecuted the case.
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Columbia Gang Member Sentenced on Federal Firearm ChargeRead the Press Release
COLUMBIA, SOUTH CAROLINA — Raekwon Cortez Ford, 25, of Columbia, was sentenced to five years in federal prison after pleading guilty to being a felon in possession of a firearm and ammunition.
Evidence presented to the Court showed that, in late November 2019, several automobiles were broken into and various items stolen, including an iPhone. One of the victims of the break-ins was able to track their iPhone to a residence in Columbia and notified the Columbia Police Department. Officers responded to the residence and found a number of individuals in the yard, including Ford. Ford, a gang member, was placed under arrest on outstanding warrants and was found to be in possession of the stolen iPhone.
Officers then obtained a search warrant for Ford’s residence, which they executed a month later. Within the residence, officers located Ford, who had been released on state bond from the earlier arrest, and found a loaded Ruger .45 caliber handgun concealed in an air vent in Ford’s bedroom. An analysis showed Ford’s DNA on the firearm and that the firearm had been reported stolen from an earlier auto break-in in Columbia in December 2018. A ballistics analysis through the National Integrated Ballistic Information Network (NIBIN) revealed that the firearm had been used in four separate shooting incidents in Richland and Lexington Counties from June through August 2019. It should be noted that there was no evidence linking Ford himself to the actual shootings as he was in jail on state charges at the time of the shootings.
During the sentencing hearing, the Court heard evidence of Ford’s possession of four other firearms, some with extended magazines, and some of which had been reported stolen from automobiles. The Court also heard evidence of threats made by Ford toward a Deputy United States Marshal and a correctional officer while incarcerated. That post-plea conduct increased his sentencing range and resulted in Ford losing his acceptance of responsibility reduction despite pleading guilty.
Ford is prohibited from possessing firearms and ammunition based upon his prior felony convictions. Ford has prior state convictions for unlawful carrying of a weapon, possession of a pistol by a person under 18 years of age, obtaining property under false pretenses, and breach of peace of an aggravated nature (which involved a shooting).
United States District Judge Sherri A. Lydon sentenced Ford to 60 months imprisonment, to be followed by a three-year term of Court-ordered supervision. There is no parole in the federal system. In imposing the sentence, the Court noted, “Guns in the hands of folks who aren’t supposed to have them is very serious business.”
This case was made possible by investigative leads generated from the ATF’s National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Columbia Police Department. Assistant U.S. Attorney Stacey D. Haynes prosecuted the case.
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California Man Receives 10 Year Sentence Following Guilty Plea in South Carolina to Fraud ConspiracyRead the Press Release
Columbia, South Carolina----Judge Bruce Hendricks of the U.S. District Court for the District of South Carolina sentenced a California man today to 10 years in prison for his role as the ringleader of a nationwide Ponzi scheme that exploited military veterans in desperate financial straits and targeted elderly investors seeking a safe retirement investment.
Scott Kohn, 68, of Newport, California, ran a corporation called Future Income Payments LLC (FIP), formerly known as Pensions, Annuities, and Settlements LLC. From April 2011 until April 2018, Kohn and his co-conspirators used FIP as a vehicle for a nationwide Ponzi scheme.
Kohn and his co-conspirators solicited pensioners experiencing financial distress, most of whom were military veterans, by offering an upfront lump-sum payment in exchange for an assignment of the rights to their monthly pensions and disability payments. Even though the assignment transactions were characterized as “sales,” they were, in fact, usurious loans with annual interest rates of as much as 240%.
Kohn and his co-conspirators – working through a network of hundreds of financial advisors and insurance agents nationwide – then solicited thousands of seniors to purchase FIP’s “structured cash flows,” which were the pensioners’ monthly pension payments. Kohn and his co-conspirators induced these seniors to invest their retirement savings with FIP by making false assurances of a significant rate of return on their investment, concealing the usurious nature of FIP’s transactions with the pensioners and lying about the financial health of the corporation.
During the seven years the scheme operated, Kohn drew upon FIP funds to live a lavish lifestyle. When the Ponzi scheme ultimately collapsed, Kohn and his co-conspirators had caused more than $310 million in losses to more than 2,500 retirees and had placed more than 13,000 veterans into exploitative loans.
“The elaborate Ponzi scheme orchestrated by Kohn and his co-conspirators preyed upon both military veterans experiencing financial hardship and retirees hoping to protect their life savings,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “The department is committed to protecting our military community and America’s seniors from fraud and abuse.”
“Kohn and his co-conspirators reached across the country to steal from veterans and seniors who desperately needed their money,” said U.S. Attorney Adair F. Boroughs for the District of South Carolina. “These hundreds of millions in losses will reverberate through the victims’ lives long after the defendants serve well-deserved federal prison sentences. This office works tirelessly to protect the people of South Carolina, especially our most loyal and most vulnerable citizens. I appreciate the work of our federal partners and our partners at DOJ for making this prosecution a success.”
“Kohn’s actions resulted in devastating consequences for the thousands of seniors and veterans who entrusted him with their money,” said Special Agent in Charge Susan Ferensic of the FBI Columbia Field Office. “We are pleased that he acknowledged his crimes, and that justice will be served.”
In addition to a prison term, Judge Hendricks ordered Kohn to forfeit $297 million and be placed on supervised release for a period of three years after completing his prison term.
Four other defendants previously pleaded guilty to conspiracy for their roles in this scheme. Kraig S. Aiken, 53, of Rancho Santa Margarita, California, pleaded guilty on Nov. 20, 2019. David N. Kenneally, 59, of Greenville, South Carolina, pleaded guilty on July 22, 2020. Melanie Jo Schulze-Miller, 40, of Peoria, Arizona, pleaded guilty on Dec.11, 2020. Joseph P. Hipp, 52, of St. Louis, Missouri, pleaded guilty on Dec.21, 2021. Sentencing hearings have not yet been set for these co-conspirators.
Assistant U.S. Attorney William Watkins for the District of South Carolina and Trial Attorneys Ehren Reynolds and Yolanda McCray Jones of the Civil Division’s Consumer Protection Branch prosecuted the case.
The FBI investigated the case with assistance from the Veterans Benefits Administration’s Benefits Protection and Remediation Division and the Defense Finance Accounting Service. Resources from the Justice Department’s Servicemembers and Veterans Initiative and the Transnational Elder Fraud Strike Force aided in the investigation and prosecution.
The department’s extensive and broad-based efforts to combat elder fraud seeks to halt the widespread losses seniors suffer from fraud schemes. The best method for prevention, however, is by sharing information about the various types of elder fraud schemes with relatives, friends, neighbors and other seniors who can use that information to protect themselves.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud, and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice. For more information on the Servicemembers and Veterans Initiative, or to file a complaint, visit https://www.justice.gov/servicemembers. For more information about the U.S. Attorney’s Office for the South Carolina, visit its website at https://www.justice.gov/usao-sc.
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California Man Receives 10 Year Sentence Following Guilty Plea in South Carolina to Fraud ConspiracyRead the Press Release
Judge Bruce Hendricks of the U.S. District Court for the District of South Carolina sentenced a California man today to 10 years in prison for his role as the ringleader of a nationwide Ponzi scheme that exploited military veterans in desperate financial straits and targeted elderly investors seeking a safe retirement investment.
Scott Kohn, 68, of Newport, California, ran a corporation called Future Income Payments LLC (FIP), formerly known as Pensions, Annuities, and Settlements LLC. From April 2011 until April 2018, Kohn and his co-conspirators used FIP as a vehicle for a nationwide Ponzi scheme.
Kohn and his co-conspirators solicited pensioners experiencing financial distress, most of whom were military veterans, by offering an upfront lump-sum payment in exchange for an assignment of the rights to their monthly pensions and disability payments. Even though the assignment transactions were characterized as “sales,” they were, in fact, usurious loans with annual interest rates of as much as 240%.
Kohn and his co-conspirators – working through a network of hundreds of financial advisors and insurance agents nationwide – then solicited thousands of seniors to purchase FIP’s “structured cash flows,” which were the pensioners’ monthly pension payments. Kohn and his co-conspirators induced these seniors to invest their retirement savings with FIP by making false assurances of a significant rate of return on their investment, concealing the usurious nature of FIP’s transactions with the pensioners and lying about the financial health of the corporation.
During the seven years the scheme operated, Kohn drew upon FIP funds to live a lavish lifestyle. When the Ponzi scheme ultimately collapsed, Kohn and his co-conspirators had caused more than $310 million in losses to more than 2,500 retirees and had placed more than 13,000 veterans into exploitative loans.
“The elaborate Ponzi scheme orchestrated by Kohn and his co-conspirators preyed upon both military veterans experiencing financial hardship and retirees hoping to protect their life savings,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “The department is committed to protecting our military community and America’s seniors from fraud and abuse.”
“Kohn and his co-conspirators reached across the country to steal from veterans and seniors who desperately needed their money,” said U.S. Attorney Adair F. Boroughs for the District of South Carolina. “These hundreds of millions in losses will reverberate through the victims’ lives long after the defendants serve well-deserved federal prison sentences. This office works tirelessly to protect the people of South Carolina, especially our most loyal and most vulnerable citizens. I appreciate the work of our federal partners and our partners at DOJ for making this prosecution a success.”
“Kohn’s actions resulted in devastating consequences for the thousands of seniors and veterans who entrusted him with their money,” said Special Agent in Charge Susan Ferensic of the FBI Columbia Field Office. “We are pleased that he acknowledged his crimes, and that justice will be served.”
In addition to a prison term, Judge Hendricks ordered Kohn to forfeit $297 million and be placed on supervised release for a period of three years after completing his prison term.
Four other defendants previously pleaded guilty to conspiracy for their roles in this scheme. Kraig S. Aiken, 53, of Rancho Santa Margarita, California, pleaded guilty on Nov. 20, 2019. David N. Kenneally, 59, of Greenville, South Carolina, pleaded guilty on July 22, 2020. Melanie Jo Schulze-Miller, 40, of Peoria, Arizona, pleaded guilty on Dec.11, 2020. Joseph P. Hipp, 52, of St. Louis, Missouri, pleaded guilty on Dec.21, 2021. Sentencing hearings have not yet been set for these co-conspirators.
Assistant U.S. Attorney William Watkins for the District of South Carolina and Trial Attorneys Ehren Reynolds and Yolanda McCray Jones of the Civil Division’s Consumer Protection Branch prosecuted the case.
The FBI investigated the case with assistance from the Veterans Benefits Administration’s Benefits Protection and Remediation Division and the Defense Finance Accounting Service. Resources from the Justice Department’s Servicemembers and Veterans Initiative and the Transnational Elder Fraud Strike Force aided in the investigation and prosecution.
The department’s extensive and broad-based efforts to combat elder fraud seeks to halt the widespread losses seniors suffer from fraud schemes. The best method for prevention, however, is by sharing information about the various types of elder fraud schemes with relatives, friends, neighbors and other seniors who can use that information to protect themselves.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud, and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice. For more information on the Servicemembers and Veterans Initiative, or to file a complaint, visit https://www.justice.gov/servicemembers. For more information about the U.S. Attorney’s Office for the South Carolina, visit its website at https://www.justice.gov/usao-sc.
Myrtle Beach Family Members Sentenced to Federal Prison for Tax-Related Coronavirus Fraud SchemeRead the Press Release
FLORENCE, SOUTH CAROLINA —Two members of a Myrtle Beach family were sentenced to federal prison, and a third to probation, for their roles in a scheme to defraud the Government out of more than $500,000 by submitting false tax returns, and by stealing economic impact payments sent to others as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Specifically, Donna Karakatsani, 48, was sentenced to two years in prison while her son, Ivo Krasimirov Ivanov, 29, was sentenced to a year and a half in prison. Todor Milkov Stoenchev, 54, Karakatsani’s husband and Ivanov’s stepfather, was sentenced to five years of probation given his more limited role in the scheme.
“During a time when many families were struggling to make mortgage payments, this family was buying houses with money they stole from the American people,” said U.S. Attorney Adair F. Boroughs. “This fraud scheme was complex, lasted over several years, and took place primarily during a pandemic when these funds were sorely needed. These Defendants deserve their sentences, and I want to thank our federal partners who followed every lead, including interviewing dozens of foreign nationals and poring through mountains of tax returns and foreign-language correspondence. Their quick and thorough investigation also allowed the Government to recover a substantial portion of the stolen funds.”
“The sentences handed down today highlight the seriousness of the Defendants’ conduct,” said Donald “Trey” Eakins, Special Agent in Charge of the Charlotte Field Office of Internal Revenue Service (IRS), Criminal Investigation. “We will remain vigilant in identifying and investigating those who seek to defraud the American taxpayers by fraudulently using identities to file false claims for refunds.”
“Our nation went through one of the most challenging virus outbreaks in recent memory and one of our Government’s responses was establishing the CARES Act to lessen the economic impact on its citizens,” said Michael Speckhardt, Special Agent in Charge of the Office of the Inspector General (OIG), Office of Investigations, U.S. Department of State. “Unfortunately, the Defendants saw this as an opportunity to enrich themselves through a fraud scheme for which they were caught. Today’s sentencing underscores the Department of State’s commitment to prosecuting those who undermine the integrity of our programs.”
Evidence presented to the Court showed that beginning sometime in 2020, the IRS, along with Department of State OIG, began an investigation into the family regarding false claims for tax refunds and stolen refunds. Specifically, Karakatsani and Ivanov held themselves out as tax preparers and targeted foreign individuals, usually Bulgarians, who had spent time in the United States. They would recruit the foreign nationals through the internet and at various locations around Myrtle Beach. They also submitted numerous tax returns in the names of these foreign individuals, and would often cause those foreign individuals to receive refunds, primarily education credits. However, as foreign workers they were not entitled to these education credits.
To help keep the scheme from being detected, the Defendants enlisted other individuals to open U.S. bank accounts into which these refunds were deposited, and paid these individuals $100 for each account they opened. Ultimately, Defendants caused 68 bank accounts to be opened across 16 different banks in the names of 14 different individuals. Defendants altered their scheme when, as part of the CARES Act, the Government sent economic impact payments to qualifying individuals to their bank accounts on file. Given the false returns they had already filed, hundreds of economic impact payments were deposited into the bank accounts under Defendants’ control. Defendants retained the economic impact payments for themselves although they were aware that neither they, nor the foreign individuals to whom the payments were directed, were entitled to these funds. Defendants used the money for personal expenses and to buy real estate. Ultimately, Defendants defrauded the Government out of $530,292.60.
United States District Judge Sherri A. Lydon sentenced Karakatsani to 24 months in federal prison, and Ivanov to 18 months in federal prison, both to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system. She sentenced Stoenchev to five years’ probation. Additionally, the Government recovered approximately $380,000 of stolen funds primarily through sales of the ill-gotten property, and the Defendants were ordered to pay an additional $150,893.58 in restitution.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across Government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The case was investigated by the IRS and Department of State OIG, with assistance from the Department of Treasury’s Bureau of the Fiscal Service, the Myrtle Beach Police Department, and the Horry County Police Department. Assistant U.S. Attorney Derek A. Shoemake, who also serves as the Office’s Coronavirus Fraud Coordinator, prosecuted the case.
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Sumter Woman and Georgia Man Indicted for Firearms CrimesRead the Press Release
FLORENCE, SOUTH CAROLINA — A federal grand jury returned a four-count indictment against Daeja Bryana Hodge, 25, of Sumter, and Kelsey Antonio McCallum, 29, of Gainesville, Ga., for one count of conspiracy, three counts of making false statements on firearms purchase forms, and aiding and abetting.
The indictment alleges that, from at least June of 2020, Hodge and McCallum conspired to make false statements while purchasing firearms, and engaged in unlicensed dealing of firearms. The indictment further alleges that, on two dates in January, 2021, Hodge – aided and abetted by McCallum – falsely claimed on purchase forms at two firearms dealers in Columbia that she was the true purchaser of eight firearms when she was not the true buyer.
Hodge and McCallum face a maximum penalty of 10 years imprisonment.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms and Explosive’s (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant U.S. Attorney Katherine Flynn is prosecuting the case.
U.S. Attorney Adair F. Boroughs stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty.
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Conway Drug Supplier Sentenced to More Than 11 Years in Federal PrisonRead the Press Release
FLORENCE, SOUTH CAROLINA — Kimo Takarra Felton, 42, of Conway, was sentenced this week to more than 11 years in federal prison after pleading guilty to being a member of a 35-member conspiracy to possess with intent to distribute five kilograms or more of cocaine.
Evidence presented at the sentencing hearing reflects that between 2017 and 2020, Felton supplied other drug dealers in the Myrtle Beach area with various quantities of cocaine totaling more than 50 kilograms. Felton’s participation in this conspiracy came to light when he was intercepted during a wiretap investigation conducted during the summer of 2020. In August 2020, agents subsequently intercepted a shipment of half a kilogram of cocaine that Felton had just sent to another drug dealer by way of a courier. When Felton was arrested by federal authorities on December 1, 2020, he answered the door with a Draco 7.62 caliber assault rifle and several other firearms were found inside his residence, a location where he had met others during the course of the conspiracy. Despite his lack of any prior felony convictions, Felton received a lengthy sentence based on the significant quantity of drugs he distributed and his possession of firearms during the offense.
United States District Judge Sherri A. Lydon sentenced Felton to 135 months in federal prison, to be followed by five years of supervised release. Felton has been in custody since his December 2020 arrest. There is no parole in the federal system.
This operation was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Agents of the Drug Enforcement Administration (DEA) Florence Resident Office quarterbacked this large-scale, long-term investigation with significant participation from the following agencies: Bureau of Alcohol Tobacco, Firearms, and Explosives (ATF), United States Marshal Service, Myrtle Beach Police Department, Horry County Police Department, North Myrtle Beach Police Department, Florence County Sheriff’s Office, Georgetown County Sheriff’s Office, 15th Circuit Drug Enforcement Unit, Conway Police Department, and Horry County Sheriff’s Office.
Assistant U.S. Attorney Everett McMillian, Lead Attorney for the Organized Crime and Drug Enforcement Task Force (OCDETF), prosecuted the case with support from the 15thth Circuit Solicitor’s Office.
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Goose Creek Man Indicted for Firearm and Law Enforcement Impersonation ChargesRead the Press Release
CHARLESTON, SOUTH CAROLINA — A federal grand jury in Charleston returned a two-count indictment against Jeremy Allen Hughes, 39, of Goose Creek, for possessing a weapon after a misdemeanor domestic violence conviction and impersonating a federal law enforcement officer.
The indictment alleges that on November 22, 2021, Jeremy Hughes falsely claimed he was with the U.S. Marshals searching for a fugitive. Hughes carried a pistol and shotgun and wore tactical clothing with a “Police US Marshals” shirt. Investigators ultimately arrested Hughes on December 1, 2021. During the arrest, Hughes had multiple firearms and ammunition on his person. During a search of his residence, investigators located several additional firearms and ammunition. According to information presented to the Court, Hughes is federally prohibited from possessing a firearm and ammunition due to a previous domestic violence conviction.
Hughes faces a maximum penalty of thirteen years in prison if convicted, and he is currently detained.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Berkeley County Sheriff’s Office, the United States Marshals Service, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant United States Attorney Chris Lietzow is prosecuting the case.
United States Attorney Adair F. Boroughs stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty.
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Federal Indictment Returned for Theft of Guns from WalmartRead the Press Release
Columbia, SOUTH CAROLINA — A federal grand jury returned a four-count indictment against Christopher Cunningham, 33, of Columbia, for conspiracy to steal guns from Walmart, theft of guns from Walmart, possession of stolen guns, and possession of a firearm by a convicted felon
The indictment alleges that on March 6, 2022, Cunningham and an unknown co-conspirator entered Walmart after the close of business and stole four firearms from the store’s inventory. The indictment further alleges that this incident happened after Cunningham was convicted of a crime punishable by more than one year.
Cunningham faces a maximum penalty of five years on the conspiracy charge and 10 years on each of the remaining charges. He is currently detained pending trial.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the City of Columbia Police Department. Special Assistant U.S. Attorney Lamar J. Fyall is prosecuting the case.
U.S. Attorney Adair F. Boroughs stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty.
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Charleston Man Sentenced to 25 years for Production of Child PornographyRead the Press Release
CHARLESTON, SOUTH CAROLINA —Scott Ashley Cascone, 48, of Charleston, was sentenced to 25 years in federal prison for production of child pornography.
Evidence presented to the Court showed that on November 18, 2015, a Homeland Security Investigations (HSI) agent working undercover in a chat room observed an individual with the user name “unclebaddy” post a web link that contained a child pornography video. The IP address matched the residence of Cascone. During the investigation, HSI agents also learned that Cascone was being investigated by the West Virginia State Police for having online sexual communications with a 14-year-old West Virginia girl. Follow up investigation by HSI determined that on three occasions Cascone enticed the minor to produce sexually explicit images of herself, and to text the images to Cascone. HSI agents ultimately executed search warrants on Cascone’s residence and Dropbox account and found numerous images and videos of child pornography. Cascone was interviewed and admitted to electronically sending sexually explicit images of himself to the minor and receiving sexually explicit images of the minor.
Senior U.S. District Judge Margaret B. Seymour sentenced Cascone to 300 months in federal prison, to be followed by a lifetime term of court-ordered supervision. Judge Seymour also ordered Cascone to pay $27,500 in restitution. There is no parole in the federal system.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
The case was investigated by HSI and the West Virginia State Police. Assistant U.S. Attorney Dean H. Secor prosecuted the case.
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Pelion Man Sentenced to 4 Years for Defrauding Investors Out of More Than $3 MillionRead the Press Release
COLUMBIA, SOUTH CAROLINA — Samuel Sturkie Jackson, Jr., 51, of Pelion, was sentenced to four years in federal prison for defrauding individual investors out more than three million dollars.
“When taxpayers invest their hard-earned money in a business, they have every right to expect that no one will rob them,” said U.S. Attorney Adair F. Boroughs. “Samuel Jackson did exactly that, and stole millions. With the thorough work of our state and federal partners, this Office brought him to justice and he will spend several years in federal prison and has been ordered to make restitution to his victims.”
“The U.S. Secret Service remains focused on bringing those who commit financial crimes to justice,” said John Hirt, Special Agent in Charge of the Columbia Field Office for the U.S. Secret Service. “In this instance, Samuel Jackson turned his investors into victims, betraying their trust to carry out his own embezzlement scheme. I commend our partners at SLED and the U.S. Attorney’s Office for their efforts working alongside the U.S. Secret Service personnel that investigated this case in order to bring some justice to the victims in this scheme.”
“White-collar crime costs all of us,” said South Carolina Law Enforcement Division (SLED) Chief Mark Keel. “SLED agents and our law enforcement partners will continue to aggressively pursue those who seek to defraud others.”
Evidence presented to the Court showed that, while operating an Automated Transaction Machine (ATM) business called Little Giant ATM, Jackson solicited investments from individual investors and promised them a monthly rate of return. The purpose of these investments was to load cash into the ATM machines, with anticipated profits from transaction fees. However, from 2015 to 2019, Jackson converted money from the business and investor deposits to his own use, spending the money on farm equipment, cars, and trips to Las Vegas. Through this scheme, Jackson defrauded Little Giant ATM investors of over $3.4 million.
United States District Judge Terry Wooten sentenced Jackson to 48 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system. Jackson was also ordered to pay $3.4 million in restitution.
The case was investigated by the U.S. Secret Service and SLED. First Assistant U.S. Attorney Book Andrews prosecuted the case.
Former Real Estate Developer Sentenced to More Than 5 Years in Fraud Scheme Involving Daufuskie Island ResortRead the Press Release
CHARLESTON, SOUTH CAROLINA James Thomas Bramlette, 42, of Salt Lake City, Utah, was sentenced to more than five years in federal prisons after pleading guilty to wire and tax fraud.
Evidence presented to the Court showed that Bramlette and his co-conspirators raised over $10 million from investors to develop Melrose Resort on Daufuskie Island, knowing the resort was in dire financial condition and subject to foreclosure by the original lender. Bramlette and his co-conspirators repeatedly told investors their funds were being used to develop the resort when, in reality, the funds were used to pay the original lender not to foreclose, pay previous investors, and to pay employees, utilities, and taxes at the resort. Bramlette also used at least $1.8 million from investors for personal use and to live a lavish lifestyle.
“Mr. Bramlette’s prison sentence reflects the seriousness of his offense and the United States Attorney’s Office’s dedication to deterring fraud,” said U.S. Attorney Adair F. Boroughs. “This office will continue to prosecute those who cheat their fellow citizens and steal federal tax dollars.”
Concerning the wire fraud charge, in September 2016 Melrose Resort owed more than $500,000 in past due property taxes. The Beaufort County Treasurer’s Office notified Bramlette that the resort would be auctioned at a tax sale if the property taxes were not paid. In order to prevent the resort from being sold at the tax sale, Bramlette created a fake wire receipt that falsely represented that Melrose Resort had wired money to the Beaufort County Treasurer’s Office to pay the property taxes.
“Instead of being truthful about the continued financial problems at Melrose Resort, Bramlette defrauded investors and misled others who had interests in the property,” said Susan Ferensic, Special Agent in Charge of the FBI Columbia Field Office. “With this sentence, he will pay the consequences in prison and will no longer be able to continue his lavish lifestyle at the expense of those who put their trust in him.”
As to tax fraud charge, Bramlette was required to collect and pay federal payroll taxes from the wages of all employees at Melrose Resort. Bramlette collected payroll taxes from the employees, but he failed to turn over these taxes to the IRS. In total, Bramlette failed to turn over to the IRS approximately $1 million in payroll taxes.
"Employment tax evasion results in the loss of tax revenue to the United States Government.” stated Donald “Trey” Eakins, Internal Revenue Service (IRS) Special Agent in Charge, Charlotte Field Office. "Failure to pay over withheld taxes is a serious offense. Corporate executives have a responsibility to withhold income taxes for their employees and then remit those taxes to the IRS. IRS Criminal Investigation will vigorously pursue anyone who collects these taxes and uses the funds for their own personal gain."
United States District Judge Richard M. Gergel sentenced Bramlette to 63 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the FBI and the IRS. Assistant U.S. Attorney Amy Bower prosecuted the case.
Defendant Sentenced to More Than 18 Years in Multi-State Mother-Son Fraud Scheme Involving Identity Theft, Stolen Vehicles, and a FirearmRead the Press Release
FLORENCE, SOUTH CAROLINA — Quinae Shamyra Stephens, 41, of Douglasville, Georgia, was sentenced to more than 18 years in federal prison after she was convicted by a jury for multiple charges relating to a multi-state identity theft and fraud ring she was running with her son. Specifically, Stephens was sentenced after being convicted for conspiracy to commit wire fraud and bank fraud; identity theft; aggravated identity theft; access device fraud; interstate transportation of a stolen vehicle; and felon in possession of a firearm or ammunition.
Evidence presented to the Court showed that sometime before late August 2021, after abandoning a stolen U-Haul van nearly half a dozen states away from where it was due to be returned, Stephens decided to enlist her son, Deandre Copes, 23, also of Douglasville, on a multi-state criminal journey to Florida. With a loaded semi-automatic handgun in her waistband, Stephens travelled down the East Coast in a second stolen U-Haul van stocked with dozens of fraudulently obtained identities and the equipment necessary to steal more identities, make fake credit cards, and print bogus checks. Stephens was prohibited from possessing the firearm and ammunition due to four state felony convictions for fraud-related crimes, and she was on probation for two of these offenses when she committed the crimes in this case.
She was ultimately stopped by members of the Latta Police Department due to Stephens’s suspicious behavior when she stopped near a bank in Latta. A search of the van revealed more than a dozen identification documents – including several with Stephens’s picture in various names; a device for re-encoding credit cards with different account information; and more than 25 debit and credit cards, most in the name of individuals other than Stephens or her son.
Further forensics investigation by the Secret Service revealed that Stephens would download instructional material from the dark web related to credit card fraud and identity theft, and used software form the dark web to procure personally identifiable information. The laptop also contained instructional material and files that could be used to create fake banking websites to steal account information.
“Identity theft is a threat to every citizen, and the personal information of its victims can live on the dark web forever. The nearly two-decade federal prison sentence this Office sought and received showcases just how seriously we take these crimes,” said U.S. Attorney Adair F. Boroughs. “Stephens’s conduct here was especially heinous. She was a four-time felon who enlisted her son in a multi-state fraud scheme involving stolen vehicles, false identities, the dark web, obstruction of justice, and a loaded weapon. I want to especially thank our local and federal partners who worked tirelessly to ensure the jury conviction and sentence in this case.”
“This case originated due to great police work by the Latta Police Department in identifying suspicious activity being conducted by the defendants in this case,” said John Hirt, Special Agent in Charge of the Columbia Field Office for the U.S. Secret Service. “We appreciate that the Latta Police Department then included the U.S. Secret Service in their investigation. I commend the diligence and hard work of the Secret Service personnel involved in this investigation. I also commend the great work of the U.S. Attorney’s Office from the District of South Carolina in prosecuting this case. The sentence given in this case exemplifies that the U.S. Government takes the crime of identity theft seriously, and we will not tolerate people that lie, cheat, and steal.”
“The Defendant in the case receiving this sentence is a testament to what partnerships can accomplish: local and federal agencies working together for a common goal to protect innocent victims and bring wrongdoers to justice,” said C. Zane Bryant, Interim Cheif of Police for the Latta Police Department.
At her sentencing, Stephens received sentencing enhancements for being a leader in the criminal enterprise and for obstruction of justice. The Court also heard evidence that Stephens fraudulently obtained several Paycheck Protection Program (PPP) loans in her name, and in the names of others. PPP loans consists of more than $640 billion in forgivable Government-backed loans to small businesses for payroll, mortgage interest, rent, and utilities as a result of COVID-19.
The Court rejected Stephens’s attempts to assert a sovereign citizen defense, which asserts that federal courts lack jurisdiction over individuals. The Court acknowledged this was a frivolous defense that has been rejected throughout the country.
United States District Judge Sherri A. Lydon sentenced Stephens to 224 months in federal prison, to be followed by a five-year term of court-ordered supervision. There is no parole in the federal system. Stephens was also ordered to pay restitution to her victims. Stephens’s son, who testified at Stephens’s trial, was previously sentenced to time served after pleading guilty to conspiracy to commit wire fraud and bank fraud.
The case was investigated by the U.S. Secret Service, Latta Police Department, and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant U.S. Attorneys Derek A. Shoemake and Everett McMillian prosecuted the case.
United States Attorney Adair Boroughs, Justice Department Leadership to Participate in National Night Out Events in Charleston to Promote Community-Police PartnershipsRead the Press Release
CHARLESTON, SOUTH CAROLINA —United States Attorney Adair F. Boroughs will join Deputy Attorney General Lisa O. Monaco to participate in the 39th Annual National Night Out today as part of a department-wide effort to bring attention to events that build stronger communities.
Established in 1984 from a Department of Justice Bureau of Justice Assistance (BJA) grant, the goal of National Night Out is to build relationships with and between communities and law enforcement. National Night Out is an annual community-building campaign that promotes police-community partnerships and neighborhood camaraderie to make our neighborhoods safer, better places to live. In most areas of the country, the program culminates annually on the first Tuesday of August.
“I am honored to join our law enforcement partners and community members for National Night Out,” said U.S. Attorney Boroughs. “South Carolina is safer when police officers and the communities they protect see their common goals and build relationships.”
OPEN PRESS
National Night Out in the Greater Charleston Area
WHO: Deputy Attorney General Lisa O. Monaco and United States Attorney Boroughs will attend two National Night Out events in Charleston with both the Charleston Police Department and North Charleston Police Departments.
WHEN: Tuesday, Aug. 2, 2022 approximately 5:30 - 7:30 p.m. EDT
WHERE: Eastside National Night Out with the Charleston Police Department at Mall Park 68 Columbus Street, Charleston, SC
North Charleston Police Department National Night Out at Riverfront Park 1061 Everglades Avenue, Charleston, SC
For information on National Night Out events in your community, visit https://natw.org/.
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Brook Andrews Named First Assistant U.S. Attorney for the District of South CarolinaRead the Press Release
COLUMBIA, SOUTH CAROLINA —United States Attorney Adair F. Boroughs announced that Brook Andrews has been named First Assistant U.S. Attorney for the District of South Carolina, the office’s second-ranking position.
Andrews is a career federal prosecutor with experience spanning criminal, civil, trial, and appellate matters across several duty stations within the U.S. Department of Justice. He most recently served the office as the Deputy Criminal Chief for the White Collar/General Crimes Section. In that role, Andrews oversaw the investigation and prosecution of federal crimes in South Carolina including all financial fraud, civil rights, human trafficking, and public corruption offenses. As a criminal prosecutor, Andrews handled a number of high-profile matters including the prosecution of former SCANA executives in the wake of the V.C. Summer Nuclear investigation. Before that, he spent several years litigating civil fraud and whistleblower cases, recovering millions of dollars for Medicare, Medicaid, TRICARE, and other federal programs. In addition to his primary duties as a prosecutor, Andrews has served for over five years as the Ethics Advisor for the district, and as an adjunct professor at the University of South Carolina School of Law.
Before returning to his hometown of Columbia in 2016, Andrews practiced law in Washington, D.C. for five years, beginning with his selection into the U.S. Department of Justice Attorney General's Honors Program and placement into the Environment and Natural Resources Division. As a DOJ Trial Attorney, Andrews spent several years representing the United States in cases around the country involving land use, water rights, and environmental regulations. Andrews then spent two years in private practice at a national law firm, representing states and cities around the country as outside counsel in complex civil fraud and consumer protection cases.
Before his litigation practice, Andrews served as a law clerk to Chief Justice Jean Toal of the South Carolina Supreme Court and U.S. District Judge Margaret Seymour for the District of South Carolina. While at the Supreme Court, Andrews also served as a Staff Attorney on the South Carolina Sentencing Reform Commission.
For more information about the U.S. Attorney’s Office for the District of South Carolina, please visit https://www.justice.gov/usao-sc.
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Three Florence Men Sentenced to Years in Prison on Federal Firearms ViolationsRead the Press Release
FLORENCE, SOUTH CAROLINA —Shakeam Marquise Backus, 27, Joey Qurrieven York, 23, and Jyqwon Antonio Woods, 34, all of Florence, were sentenced this week to multiple years in federal prison based on their convictions for federal firearms violations. These cases were jointly investigated by the Florence Police Department (FPD) and the Florence County Sheriff’s Office with the assistance of the Federal Bureau of Investigation (FBI) as part of an ongoing state/federal partnership to address violent crime in the Pee Dee. These defendants were specifically selected for federal prosecution due to their connections with a local street gang.
Backus was sentenced to 147 months in prison followed by a four-year term of supervised release after pleading guilty to being a felon in possession of a firearm and conspiring to distribute 28 grams or more of crack cocaine. Evidence presented at the sentencing hearing showed that during a traffic stop on March 28, 2017, he was caught with a stolen Glock, model 26, pistol loaded with 17 rounds of 9mm ammunition in an extended magazine. He also had various drugs in his vehicle and attempted to flee on foot before being apprehended by officers from the Florence Police Department. He was also found in possession of several firearms and other drugs during a July 10, 2020, search warrant executed by Florence County Sheriff’s Office deputies. Backus was prohibited from possessing a firearm or ammunition due to his prior felony convictions, which include burglary (2010), grand larceny (2010), strong arm robbery (2012), assault and battery, 1st Degree (2015), and distribution of crack cocaine (2016).
York was sentenced to 84 months in prison followed by a five-year term of supervised release after pleading guilty to being a felon in possession of a firearm and ammunition and possession of a firearm in furtherance of a drug trafficking crime. Evidence presented at the hearing showed that on December 10, 2020, he was the subject of a traffic stop where he was found to be in possession of a stolen vehicle, a loaded Smith and Wesson .38 revolver, marijuana, a digital scale, and a black ski mask. He was apprehended by officers from the Florence Police Department after a short foot chase. York was also prohibited from possessing a firearm or ammunition due to his prior felony convictions for possession of a stolen vehicle and failure to stop for blue lights (2017), and he had several prior misdemeanor convictions for drug possession and driving offenses.
Woods was sentenced to 60 months in prison followed by five-year term of supervised release after pleading guilty to possession of a firearm in furtherance of a drug trafficking crime. Evidence at the hearing showed that Woods drew the attention of Florence Police Department officers on March 19, 2019, when he was seen putting a pill bottle in his pocket and then attempting to flee on foot. He was apprehended and found to be in possession of an SCCY 9mm pistol loaded with 10 rounds of ammunition, oxycodone pills, crack and powder cocaine, cash, and a digital scale. Woods was prohibited from possessing a firearm or ammunition due to his prior felony convictions for possession of a stolen vehicle (2004) and conspiracy to distribute crack cocaine (2008), with the latter charge resulting in him being sent to federal prison for several years. He also has prior misdemeanor convictions for drug possession, DUI, and resisting arrest.
United States District Judge Sherri A. Lydon sentenced the defendants, all of whom have been in custody since the time of their arrests. There is no parole in the federal system, and they will not be released until the service of their prison sentences is complete.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Everett McMillian, Lead Attorney for the Organized Crime and Drug Enforcement Task Force, prosecuted the cases in close coordination with the Florence Police Department, the Florence County Sheriff’s Office, the FBI, and the 12th Circuit Solicitor’s Office.
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Georgia Man is Sentenced to Prison for Defrauding Medicaid Programs in Three StatesRead the Press Release
CHARLOTTE, N.C. – A Georgia man was sentenced to prison for participating in a scheme that defrauded the Medicaid programs in North Carolina, South Carolina and Georgia of more than $5 million, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Kenneth D. Bell sentenced Glenn Pair, 36, of Stonecrest, Georgia to 70 months in prison and two years of supervised release and ordered the defendant to pay a total of $5,078,444 as restitution.
U.S. Attorney King is joined in making today’s announcement by Adair Ford Boroughs, U.S. Attorney for the District of South Carolina, Ryan K. Buchanan, U.S. Attorney for the Northern District of Georgia, North Carolina Attorney General Josh Stein, Robert R. Wells, Special Agent in Charge of the FBI in North Carolina, and Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI).
The criminal charges filed against Pair in federal court in the Northern District of Georgia and South Carolina were transferred to the U.S. District Court for the Western District of North Carolina in September and October 2021, respectively. In October 2021, Pair pleaded guilty to conspiracy to commit Medicaid fraud in connection with the three federal prosecutions. Pair also pleaded guilty to a money laundering conspiracy offense in the Western District of North Carolina. Today’s sentence resolves all three federal criminal actions against the defendant.
According to filed court documents and today’s sentencing hearing, Pair and his co-conspirator, Markuetric Stringfellow, owned and operated an after-school and youth mentoring program known as Do-It-4-The Hood Corporation (D4H). From January 2016 through November 2018, Pair and Stringfellow paid individuals to recruit at-risk youths, in particular children who were Medicaid eligible in North Carolina, for their D4H program. Once enrolled, children were required to submit urine specimens for drug testing. Pair and Stringfellow conspired with certain laboratories to perform the drug testing of the enrolled children’s urine specimens and received kickbacks once the laboratories were reimbursed by the North Carolina Medicaid. In 2017, Pair moved to Georgia, and he and Stringfellow expanded the fraudulent scheme to defraud the state’s Medicaid program.
The South Carolina scheme involved Wrights Care Services LLC (Wrights Care), a qualified provider of Medicaid rehabilitative behavioral health services in South Carolina. Pair and Stringfellow became owners of a Wrights Care franchise in Columbia, South Carolina. Starting in or around 2014, Pair and Stringfellow defrauded the South Carolina Medicaid program by filing fraudulent claims for mental health counseling or other services that were either not provided, partially provided, or did not qualify for Medicaid reimbursement. Pair and Stringfellow submitted falsified patient billing records and fake medical notes to support the fraudulent reimbursement claims filed. After learning there was a Medicaid audit for Wrights Care, Stringfellow attempted to deceive South Carolina Medicaid auditors. In or about March 2015, Stringfellow met other associates of Wrights Care in Columbia for a “note party.” During this gathering and in Pair’s presence, the co-conspirators created false and fraudulent billing records to substantiate previously-submitted fraudulent Medicaid claims, forged signatures, and falsified records subject to the audit, which they then submitted to South Carolina Medicaid auditors in response to the audit.
Over the course of the scheme, Pair, Stringfellow and their co-conspirators submitted thousands of fraudulent claims to Medicaid of the three states totaling over $17 million and received over $5 million in fraudulent reimbursements. In addition, they received $1.8 million in kickbacks from the laboratories that participated in the conspiracy.
Pair is currently released on bond. He will be ordered to report to the federal Bureau of Prisons upon designation of a federal facility. Stringfellow was sentenced in February 2021 to 78 months in prison and was ordered pay $5,278,550 in restitution for his role in the scheme.
In making today’s announcement U.S. Attorney King thanked the U.S. Attorneys’ Offices in South Carolina and the Northern District of Georgia, the FBI in North Carolina, South Carolina and Georgia, and the Medicaid Investigations Division in the three states for their investigative efforts and coordination throughout case.
Assistant U.S. Attorneys Michael E. Savage and Graham Billings of the U.S. Attorney’s Office in Charlotte, prosecuted the case, assisted by Special Assistant U.S. Attorney Jermaine Sellers with the Medicaid Fraud Investigation Division of the N.C.
Also assisting in the prosecution of this case was Assistant United States Attorney Brook B. Andrews from the Columbia, South Carolina office.
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Former US Air Force Member Sentenced to 15 years for Production of Child PornographyRead the Press Release
CHARLESTON, SOUTH CAROLINA — Bryce Carter Studebaker, 25, of Moncks Corner, was sentenced to 15 years in federal prison for production of child pornography.
Evidence presented to the Court showed that on March 30, 2018, Studebaker, then an Airman in the U.S. Air Force and stationed at Beale Air Force Base in California, communicated on Facebook Messenger with a 14-year-old minor who lived in Tennessee. During the messaging, Studebaker persuaded the minor to produce videos and images of herself engaging in sexually explicit conduct, and to send the videos and images to Studebaker. Authorities discovered the conduct after responding to a call from the minor’s mother who said her daughter had been communicating with an online predator.
United States District Judge Bruce Howe Hendricks sentenced Studebaker to 180 months in federal prison, to be followed by a lifetime term of court-ordered supervision. There is no parole in the federal system.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
The case was investigated by the U.S. Air Force Office of Special Investigations (OIS). Assistant U.S. Attorney Dean H. Secor prosecuted the case.
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Columbia Man Pleads to Federal Firearm ChargeRead the Press Release
COLUMBIA, SOUTH CAROLINA —Ernest Durane Mack, a/k/a “Marcus Mack,” 35, of Cayce, has pleaded guilty to being a felon in possession of a firearm and ammunition.
Evidence obtained in the investigation revealed that on July 26, 2019, a trooper with the South Carolina Highway Patrol initiated a traffic stop on St. Andrews Road in Columbia on a vehicle driven by Mack after recognizing it to be a vehicle he had attempted to stop a week earlier for a traffic violation, but which fled during the chase. After stopping the vehicle, Mack exited and fled on foot. Officers located Mack in a nearby apartment complex breezeway and observed him with a handgun, which he then threw towards the officers. Mack advised officers that he fled because he had the handgun in the car. The investigation revealed that the handgun had previously been reported stolen in Spartanburg County. Mack, who was on state probation at the time of the offense, has prior state convictions for trafficking cocaine (2 separate counts), forgery, possession of a controlled substance, and criminal domestic violence 1st degree (2 separate counts).
On the firearm charge, Mack faces a maximum penalty of 10 years in federal prison. He also faces a fine of up to $250,000, restitution, and three years of supervision to follow the term of imprisonment. United States District Judge Mary Geiger Lewis accepted the guilty plea and will sentence Mack after receiving and reviewing a sentencing report prepared by the United States Probation Office.
This investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the South Carolina Highway Patrol is part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Stacey D. Haynes is prosecuting the case.
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Lexington Man Indicted on 15 Counts for Armed Robbery and Brandishing a Firearm at 7 Columbia Area BusinessesRead the Press Release
COLUMBIA, SOUTH CAROLINA — A federal grand jury in Columbia returned a 15-count indictment against Deveon Antonio Belk, 35, of Lexington, charging felon in possession of a firearm and ammunition, seven counts of Hobbs Act robbery, and seven counts of brandishing a firearm in connection with a crime of violence.
The indictment alleges that between November 9 and November 16, 2020, Belk robbed seven Columbia-area businesses at gunpoint, including Dollar General, Family Dollar, Wendy’s, SKS Mart, and CVS. The indictment alleges that Belk brandished a firearm at each victim business, where he stole money and merchandise. The indictment also charges he was a felon in possession of a firearm and ammunition, and that he possessed a Ruger 9mm pistol and 9mm ammunition in connection with his conduct.
Belk faces a maximum penalty of up to Life in prison. He is currently detained pending his arraignment in federal court in Columbia on August 9, 2022, at 10:00 A.M. before U.S. Magistrate Judge Paige J. Gossett.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the FBI, Richland County Sheriff’s Department, Lexington County Sheriff’s Office, Columbia Police Department, Irmo Police Department, and South Carolina Law Enforcement Division. Assistant U.S. Attorney Elliott B. Daniels is prosecuting the case.
U.S. Attorney Adair F. Boroughs stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty.
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Federal Inmate Pleads Guilty to Threatening Federal JudgeRead the Press Release
FLORENCE, SOUTH CAROLINA —Stanley J. Kowalewski, 50, of North Carolina, has pleaded guilty to mailing threatening communications to a United States District Court Judge.
Evidence obtained in the investigation revealed that following a federal jury trial in the Northern District of Georgia, Kowalewski was convicted on 22 counts related to a fraud scheme and sentenced to more than 17 years in federal prison. While serving that sentence in a prison in South Carolina, a federal judge received a letter that threatened to cause the women close to the judge to disappear if the judge did not grant all pending compassionate release motions, or motions for a reduction in sentence and release from prison, by a certain date. Specifically, the letter stated:
“Judge [Redacted],
You have failed to do the right things. Now you make us do this. You will grant ALL pending motions in your court for compassionate release by July 2nd, 2021 at 3:00 PM or earlier. They are all to be reduced to time served with NO supervised release. They will be immediate release from prison and no delays. If not, then we will begin to disappear the women closest to you. We know where they live, work, or go to school. If you try to alert the authorities, we will know and your loved ones will disappear. Do your job and everyone will be happy and you’ll never here from us again.
A.C.B.”
The day before the threat was mailed, an individual visited Kowalewski in prison. During that visit, Kowalewski provided that person two envelopes, one inside the other, and told that person to handle the interior envelope with gloves, to not get fingerprints on the envelope, to not ask questions, and to place it in the mail. A recorded prison call from Kowalewski to the visitor revealed that Kowalewski directed the person to hurry up and mail the letter.
The investigation also revealed that there was no other inmate at Kowalewski’s facility who was sentenced by the victim judge or court. The letter was mailed across state lines and delivered to the victim judge. At the time of the threat, Kowalewski had a compassionate release motion pending before the victim court.
Kowalewski faces up to 10 years in federal prison, which can be ordered to be served consecutive to his current sentence. He also faces a fine of up to $250,000, restitution, and three years of court-ordered supervision to follow the term of imprisonment. Chief United States District Judge R. Bryan Harwell accepted the guilty plea and will sentence Kowalewski after receiving and reviewing a sentencing report prepared by the United States Probation Office.
This case was investigated by the United States Marshals Service with assistance from the Federal Bureau of Investigation (FBI), the Federal Bureau of Prisons (BOP), the United States Postal Inspection Service (USPIS), and agencies in the Northern District of Georgia. Assistant U.S. Attorney Elliott B. Daniels is prosecuting the case.
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Columbia Man Sentenced to 12 Years for Selling Drugs to ATFRead the Press Release
COLUMBIA, SOUTH CAROLINA —Derrall Lanard Reed, a/k/a “Ric0,”35, of Columbia, was sentenced to 12 years in federal prison after pleading guilty to five counts of felon in possession of a firearm and ammunition and four counts of possession with intent to distribute and distribution of cocaine and crack cocaine.
Evidence obtained in the investigation revealed that in early 2020, agents from Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), along with local agencies, conducted an investigation into firearms within the Columbia area. During this investigation, undercover ATF agents were introduced to Reed, who during five transactions in February 2020 sold five handguns, many of which were loaded, and crack cocaine and cocaine to undercover ATF agents. During one of the transactions, the undercover agent tried to buy Reed’s personal firearm, but he refused, saying he didn’t want to be “naked” (without a gun). Reed was arrested on federal charges and detained without bond on March 12, 2020, when he showed up to sell another firearm to the undercover agents. A federal search warrant was executed on his home. Inside the home, agents found his personal firearm, which had a high-capacity magazine, and various rounds of ammunition. Of the six handguns recovered by ATF during this investigation, three had previously been reported as having been stolen from residences or vehicles. Two were previously reported stolen in Richland County, and one, on which someone had attempted to obliterate the serial number, had previously been reported as having been stolen from a residence in Hoke County, North Carolina. Additionally, two of the firearms, including the one recovered in Reed’s home, were preliminarily linked through ballistics analysis as having been involved in ShotSpotter incidents and other shooting incidents in Columbia on July 2019, November 2019, December 2019, and March 2020. Reed has prior state convictions for possession of crack cocaine (2004), possession with intent to distribute crack cocaine (2006), and assault and battery with intent to kill (2006, wherein he shot another person in the thigh).
United States District Court Judge Mary Geiger Lewis sentenced Reed to a total of 144 months imprisonment to be followed by a six-year term of court-ordered supervision. There is no parole in the federal system.
This investigation by the ATF, Columbia Police Department, Richland County Sheriff’s Department, and the Midlands Gang Task Force was made possible by leads generated from the ATF’s National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
The technology known as “ShotSpotter” relies upon acoustic sensors to pinpoint where gunfire occurs. Information from the sensors is sent to officers of the Columbia Police Department and 9-1-1 dispatchers through real-time digital alerts.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant United States Attorney Stacey D. Haynes prosecuted the case.
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Blythewood Man Pleads Guilty to Sex Trafficking and Heroin Distribution OffensesRead the Press Release
COLUMBIA, SOUTH CAROLINA — Brian Leroy Watson, a/k/a “Lil B,” a/k/a “B,” 50, of Blythewood, has pleaded guilty to attempted sex trafficking of a minor and possession with intent to distribute and distribution of a quantity of heroin.
Evidence obtained in the investigation revealed that in January and February 2016, Watson attempted to exploit a minor female victim in commercial sex. In March 2016, the victim disclosed to law enforcement that Watson, a heroin and crack cocaine dealer, sexually assaulted her. Watson was interviewed by law enforcement, and he denied assaulting the victim and instead said he was prostituting her.
Advertisements from Backpage.com linked to Watson’s cell phone number and e-mail address showed the minor victim was advertised for commercial sex. Text messages from Watson’s phone also provided evidence that Watson knew the victim was a minor, and that he distributed heroin to and sexually exploited the minor victim. Another purported victim of Watson’s also told FBI that Watson exploited the minor victim in commercial sex. Numerous witnesses told FBI that Watson manipulated the withdraw symptoms and drug dependence of women to obtain commercial sex for his financial gain.
As for the heroin distribution conviction, Watson sold a quantity of heroin on August 29, 2016 to an undercover officer with the Richland County Sherriff’s Department. Watson negotiated the sale of heroin with officer, which occurred at his residence, and Watson carried a pistol in his hand at the time of the drug sale. The sale was audio and video recorded, and lab tests confirmed what Watson sold was heroin.
Watson faces up to Life in federal prison. He also faces a fine of up to $250,000, restitution to all identifiable victims of his scheme, and a Life term of court-ordered supervision to follow any term of imprisonment. He also must register as a sex offender upon any release from prison. United States District Judge J. Michelle Childs accepted the guilty plea and the Court will sentence Watson after receiving and reviewing a sentencing report prepared by the United States Probation Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
This case was investigated by the FBI, the Richland County Sheriff’s Department, and the Kershaw County Sheriff’s Office. Assistant U.S. Attorney Elliott B. Daniels is prosecuting the case.
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Adair Ford Boroughs Sworn in as United States Attorney for the District of South CarolinaRead the Press Release
COLUMBIA, SOUTH CAROLINA — Adair Ford Boroughs was officially sworn in today as United States Attorney for the District of South Carolina. U.S. Attorney Boroughs was nominated by President Joseph R. Biden on June 6, 2022, and was confirmed by the U.S. Senate on July 21, 2022. United States District Judge Richard M. Gergel administered the oath of office to U.S. Attorney Boroughs in a ceremony at the federal courthouse in Charleston. An investiture ceremony will take place at a later date.
“I am incredibly excited and honored to return to the Department of Justice as the U.S. Attorney for the District of South Carolina,” said U.S. Attorney Boroughs. “The team at the U.S. Attorney’s Office is incredibly talented, dedicated, and committed to the mission. I look forward to digging in and doing the work alongside them, as well as alongside our law enforcement partners and our communities, to protect and serve the citizens of the District of South Carolina and to seek fairness and justice in all that we do.”
U.S. Attorney Boroughs is the chief federal law enforcement officer responsible for federal criminal prosecutions and civil litigation involving the United States in the District of South Carolina. She supervises an office of approximately 61 Assistant United States Attorneys, 75 support staff, and 13 contract support staff. The office prosecutes federal crimes affecting the district, including narcotics and firearms cases, gang violence, human trafficking, white-collar crime, securities fraud, public corruption, terrorism, and civil rights violations. The office also defends the United States in civil cases and collects debts owed to the United States.
Prior to her confirmation as U.S. Attorney, Boroughs was a partner at Boroughs Bryant, LLC where she handled complex litigation and provided strategic counsel to clients. From 2017 to 2019, she served as Executive Director of Charleston Legal Access, a nonprofit, sliding-scale law firm that she helped found to address the justice gap in South Carolina. From 2013 to 2017, Boroughs clerked for Judge Gergel, where she worked on a number of high-profile cases including United States v. Dylan Roof, where the defendant was convicted of killing nine Black parishioners during a prayer meeting at the historic Charleston Emanuel AME church. Boroughs began her legal career in the Tax Division of the U.S. Department of Justice in Washington, D.C. as part of the Attorney General’s Honors Program, serving from 2007 to 2013. While there, she handled complex civil ligation across the country, received awards for her trial work and mentorship of new attorneys, and served on the Assistant Attorney General’s Diversity Committee where she led the work on overhauling the Division’s hiring practices. Prior to law school, Boroughs taught high school mathematics in South Carolina’s public schools.
Boroughs received her J.D., with distinction, from Stanford Law School in 2007 and her B.S. in Mathematics, summa cum laude, from Furman University in 2002. She is a 2001 Harry S. Truman Scholar.
For more information about the U.S. Attorney’s Office for the District of South Carolina, please visit https://www.justice.gov/usao-sc.
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Rock Hill Man Sentenced to More Than 2 Decades in Federal Prison for Illegal Drug SalesRead the Press Release
COLUMBIA, SOUTH CAROLINA — Archie Arsenio Caldwell, 33, of Rock Hill, was sentenced to 25 years in federal prison after pleading guilty to conspiracy to distribute cocaine, crack cocaine, methamphetamine, fentanyl, and marijuana. He also plead guilty to distributing crack cocaine and money laundering.
Evidence presented to the Court showed that the Federal Bureau of Investigation (FBI) and Rock Hill Police Department began to investigate a group of defendants who were obtaining large amounts of cocaine, methamphetamine, heroin, and marijuana from a distributor in Southern California. Based upon the investigation, the police were able to determine that members of the group were flying to California and having the drugs shipped back to the Rock Hill and Charlotte, N.C. area. Specifically, Caldwell was a member of the group and helped other members obtain flights to California to purchase the illegal substances. Caldwell also flew to California to purchase illegal substances for other members of the group and orchestrated shipping the packages back. After the drugs were shipped back to South Carolina, the group distributed the drugs to local dealers. Later, the group began ordering fentanyl from California which they used to make fentanyl-laced pills which were sold to users in Rock Hill, Greenville, Myrtle Beach, Charlotte, N.C., and Atlanta, Ga. This group shipped more than 255 packages from California and distributed more than five kilograms of cocaine, 280 grams or more of crack cocaine, 500 grams or more of methamphetamine, 400 grams or more of fentanyl, one kilogram or more of heroin, and more than a 1000 grams of marijuana. Eighteen defendants were charged in this case. Thirteen defendants have pled guilty, including Caldwell, to their involvement. Five defendants are awaiting trial.
United States District Judge Mary Geiger Lewis sentenced Caldwell to 300 months imprisonment, to be followed by 10 years of court-ordered supervision. There is no parole in the federal system.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by the FBI, Rock Hill Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosive (ATF), Drug Enforcement Administration (DEA), Internal Revenue Service (IRS), York County Sheriff’s Office, and Richland County Sheriff’s Department.
Assistant U.S. Attorneys William K. Witherspoon, Elliott Daniels, Elle Klein, and Special Assistant U.S. Attorney Lamar Fyall of the Columbia office prosecuted the case.
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91 Arrested in Crime Reduction Operation in North Carolina and South CarolinaRead the Press Release
CHARLOTTE, N.C. – A crime reduction operation in North Carolina and South Carolina has resulted in the apprehension of more than 91 individuals on charges of homicide, aggravated assault, sexual assault, robbery, kidnapping, child abuse, child sexual assault, drug distribution and gun crimes.
The enforcement operation announced today took place between July 5, 2022, and July 15, 2022, in Gaston County in North Carolina and York County in South Carolina, with special emphasis placed on communities within Gastonia, N.C. and Rock Hill, S.C.
Led by the U.S. Marshals Service, “Operation Washout” is a violent crime reduction initiative that brings together federal, state and local law enforcement, and focuses on improving safety in local communities by identifying and removing fugitives, violent criminals, self-identified gang members, sex offenders, drug traffickers, and parole violators.
“Criminal activity impacts the well-being of our communities,” said Dena J. King, U.S. Attorney for the Western District of North Carolina. “I commend the law enforcement agencies that took part in this crime reduction initiative. As we work together to build stronger relationships with our communities, we must hold accountable those who continue to spread violence and pose a threat to our citizens’ safety.”
“Our commitment to strengthen, protect and safeguard our communities is showcased by the collaborative effort of all the agencies involved in this operation,” said Chris Edge, Acting U.S. Marshal of the U.S. Marshals Service in the Western District of North Carolina. “It also serves as a somber reminder that if you commit a crime and think by fleeing the county or state the United States Marshals Service will find you, wherever you hide.”
Partnering agencies included the U.S. Marshals Service in North Carolina and South Carolina and the U.S. Marshals Service’s Carolinas Regional Fugitive Task Force, the Bureau of Alcohol Tobacco, Firearms, and Explosives (ATF), the Drug Enforcement Administration (DEA), the U.S. Attorney’s Office for the Western District of North Carolina, the U.S. Attorney’s Office for the District of South Carolina, the U.S. Probation Office for the Western District of North Carolina, the North Carolina State Bureau of Investigation, the North Carolina State Highway Patrol, the South Carolina Highway Patrol, the North Carolina Department of Public Safety, the Gaston County Police Department, the City of Gastonia Police Department, the Gaston County Sheriff’s Office, the Gaston County District Attorney’s Office, the Rock Hill Police Department, the York County Sheriff’s Office, and the York County Solicitor’s Office.
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Russell Lucius Laffitte Indicted on Federal Conspiracy, Wire Fraud, Bank Fraud, and Misapplication of Bank Funds ChargesRead the Press Release
CHARLESTON, SOUTH CAROLINA – A federal grand jury returned a five-count indictment charging Russell Lucius Laffitte with conspiracy to commit wire fraud and bank fraud, bank fraud, wire fraud, and misapplication of bank funds.
The indictment alleges that Laffitte conspired with a bank customer to commit wire fraud and bank fraud. The indictment alleges that during the conspiracy, Laffitte served as an employee, officer, or director of the Palmetto State Bank (“PSB”), and the bank customer worked as a personal injury attorney at a law firm in Hampton, South Carolina. Laffitte and the bank customer engaged in a scheme to defraud the bank customer’s personal injury clients under materially false and fraudulent pretenses and by making materially false representations. Laffitte and the bank customer conspired to obtain money from the bank customer’s personal injury clients and the law firm, money which was held at PSB.
Specifically, the indictment alleges that Laffitte - while serving as conservator for the bank customer’s personal injury clients - extended $355,000 in personal loans to himself and $990,000 in personal loans to the bank customer from funds held at PSB and belonging to the personal injury clients. Laffitte knew that the funds loaned to the bank customer were used to cover hundreds of thousands of dollars in overdraft on the bank customer’s personal account. The indictment further alleges that Laffitte knew that the bank customer used funds stolen from other personal injury clients to pay back the loans. Laffitte, as conservator or personal representative for the personal injury clients, received disbursement checks from the law firm, then negotiated and distributed the funds according to and at the bank customer’s direction. At the bank customer’s direction, Laffitte transferred the disbursed settlement funds into bank money orders, cash, and other wire transfers. The indictment alleges that Laffitte collected $391,781.07 in fees for serving as conservator and personal representative.
The indictment further alleges that on two occasions, Laffitte, as an officer and director of PSB, willfully misapplied bank funds. Specifically, on October 28, 2021, Laffitte paid the law firm $680,000 without notice to or consent from PSB, knowing that he had fraudulently transferred the money to the bank customer. Last, the indictment alleges that on July 15, 2021, Laffitte willfully misapplied $750,000 of bank funds by extending a commercial loan to the bank customer knowing that the loan was essentially unsecured and that the loan proceeds would be and were used to pay an attorney and to cover hundreds of thousands of dollars in overdraft on the bank customer’s personal account. Laffitte faces a maximum term of imprisonment of 30 years on all charges.
The case was investigated by the Federal Bureau of Investigation (“FBI”), South Carolina Law Enforcement Division (“SLED”), and South Carolina Attorney General’s Office. Assistant U.S. Attorney Emily Limehouse is prosecuting this case.
U.S. Attorney Corey F. Ellis stated that all charges in the indictment are merely accusations and that the Defendant is presumed innocent unless and until proven guilty.
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laffitte_indictment_.pdfPee Dee Man Sentenced to Eight Years in Federal Prison for Possessing a Firearm and AmmunitionRead the Press Release
FLORENCE, SOUTH CAROLINA — James Edwards Phillips, 64, of McBee, was sentenced to 8 years in federal prison after pleading guilty to being a felon in possession of a firearm and ammunition.
Evidence presented to the Court showed that, on the afternoon of December 6, 2019, a Deputy with Chesterfield County Sheriff’s Office responded to a report of an argument at a residence in Hartsville. Upon arrival, the Deputy saw Mr. Phillips holding a firearm and advancing towards another individual. The Deputy detained Phillips and recovered a loaded .22 caliber revolver from Phillips’s person. At the time of the incident, Phillips was prohibited from possessing a firearm or ammunition due to his prior federal and state felony convictions.
Chief United States District Judge R. Bryan Harwell sentenced Phillips to 96 months imprisonment, to be followed by a 5-year term of court-ordered supervision. There is no parole in the federal system.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by Chesterfield County Sheriff’s Office, Hartsville Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant U.S. Attorney Katherine Flynn prosecuted the case.
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Ladson Man Sentenced to 5 Years Imprisonment for Possession of Child PornographyRead the Press Release
CHARLESTON, SOUTH CAROLINA --- David Crosby, 29, of Ladson, was sentenced to five years in federal prison after pleading guilty to possession of child pornography.
Evidence presented to the Court demonstrated that an individual in Canada traded child pornography with Crosby through an instant messaging application for smartphones. Investigators located Crosby through the IP address he used to access the instant messaging application. Following the execution of a search warrant at his residence, investigators located 398 images and 20 videos of child pornography on Crosby’s devices, including images of prepubescent minors having sex with adults.
United States District Judge Margaret Seymour sentenced Crosby to 60 months in federal prison, to be followed by a lifetime term of court-ordered supervision. Judge Seymour also ordered Crosby to pay $3,000 in restitution to a victim identified in the case.
This sentencing is the result of an investigation by Homeland Security Investigations (“HSI”). Assistant United States Attorney Emily Limehouse prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
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Columbia Man Sentenced to 15 Years in Federal Prison for Drug and Firearms CrimesRead the Press Release
COLUMBIA, SOUTH CAROLINA — Ralph Allison Pitt, Jr., 46, of Columbia, was sentenced to 15 years in federal prison after pleading guilty to possessing with intent to distribute methamphetamine and possessing a firearm in furtherance of a drug trafficking crime.
Evidence presented to the Court showed that, on December 6, 2017, federal agents and task force officers with the Drug Enforcement Administration (DEA) Atlanta-Carolinas High Intensity Drug Trafficking Areas Program (ACHIDTA) and investigators with the Kershaw County Sheriff’s Office and Richland County Sheriff’s Department executed a search warrant on a hotel room shared by Pitt and a co-defendant, who were targets in a drug operation. Law enforcement located various controlled substances including approximately 179 grams of pure methamphetamine in a substance that weighed more than 380 grams and recovered a Smith & Wesson Model “669” 9mm pistol inside a duffle bag with a luggage tag bearing Pitt’s name.
United States District Judge Mary Geiger Lewis sentenced Pitt to 180 months imprisonment, to be followed by a five-year term of court-ordered supervision. There is no parole in the federal system.
This prosecution is part of a High Intensity Drug Trafficking Areas Program (HIDTA) investigation. HIDTA is a grant program purposed with improving public safety and well-being by disrupting and dismantling drug trafficking and money laundering organizations through intelligence-driven multi-jurisdictional operations; enhancing the safety and effectiveness of law enforcement operations through training; and improving communication and information sharing among criminal justice, drug prevention, and drug treatment professionals in support of the objectives as administered by the Office of National Drug Control Policy. Additional information can be found at https://www.achidta.org/, https://www.dea.gov/operations/hidta, and https://www.whitehouse.gov/ondcp/.
This case was investigated by the Columbia’s DEA ACHIDTA, Kershaw County Sheriff’s Office, and Richland County Sheriff’s Department. Special Assistant U.S. Attorney Kristen Bales is prosecuting the case.
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Three Federally Charged for Armed Robbery of Columbia Postal CarrierRead the Press Release
COLUMBIA, SOUTH CAROLINA — Don Everett Peters, III, a/k/a “Pop,” 21, and Shylik Lamont Smalls, a/k/a “Mitch,” 22, both of Columbia, and Elijah Rasue Dewayne Ellis, a/k/a “Smoke,” a/k/a “Black,” 21, of Valdosta, Georgia, all appeared in federal court in Columbia for their first appearance on federal complaints charging them with conspiracy to commit armed robbery of a postal carrier, armed robbery of a postal carrier, and theft/possession of a postal arrow key.
The charges stem from an incident in Columbia on March 17, 2022, where a United States Postal carrier was robbed at gunpoint.
All three face a maximum penalty of 25 years imprisonment on the armed robbery charge, five years on the conspiracy charge, and 10 years on the theft/possession of the arrow key charge. They are all currently detained.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the United States Postal Inspection Service and the Columbia Police Department. Assistant U.S. Attorney Stacey D. Haynes and Special Assistant U.S. Attorney Lamar Fyall are prosecuting the case.
U.S. Attorney Corey F. Ellis stated that all charges in the criminal complaint are merely accusations and that defendants are presumed innocent unless and until proven guilty.
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Jury Finds Defendant Guilty in Interstate Drug ConspiracyRead the Press Release
FLORENCE, SOUTH CAROLINA —Brodus Bernard Gregg, 68, of Conway, South Carolina, was convicted following a two-day jury trial in federal court for participating in an interstate cocaine trafficking conspiracy that operated for several years in the Pee Dee.
“Brodus Gregg and his co-conspirators brought large quantities of cocaine from other states into South Carolina, and a jury has now held him accountable for his conduct,” said U.S. Attorney Corey F. Ellis. “We are grateful to the Drug Enforcement Administration and the Aiken County Sheriff’s Office for their work in disrupting and dismantling this criminal enterprise. Alongside our federal, state, and local partners, we will continue to prioritize the prosecution of those who profit off the lethal drugs they pedal into our communities.”
“The mission of DEA is unwavering--we relentlessly pursue drug traffickers who distribute dangerous drugs like cocaine in our communities,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “These drugs cause immeasurable damage. DEA and its law enforcement partners are committed to protecting and serving these communities.”
“We are so appreciative of the partnerships that we have with State and Federal agencies which resulted in a conviction for this case. We are grateful to the deputies who initiated this investigation and for their exceptional work,” said Aiken County Sheriff Michael Hunt. “We will continue to do what we can to stop the distribution of illegal narcotics by working with our law enforcement partners and our community.”
Evidence presented by the Government at trial established that beginning around 2015, several drug dealers in the Conway and Myrtle Beach area began paying Gregg between $1,000 and $1,500 to pick up kilogram-quantities of cocaine and heroin from sources of supply in Bridgeport, Connecticut, and Atlanta, Georgia, and drive the drugs back to South Carolina, where they were broken down for further distribution.
The existence of the conspiracy came to light during a court-authorized wiretap conducted by the Drug Enforcement Administration during the summer of 2020, which intercepted communications from three target telephones that were in contact with dozens of drug dealers in the Pee Dee. Further investigation into the inner workings of the criminal enterprise led agents to piece together that Gregg had previously been caught during a traffic stop carrying ½ kilogram of cocaine from Atlanta to Conway while on a drug resupply run for the organization.
The evidence showed that on October 9, 2019, at 8:19 p.m., two deputies from the Aiken County Sheriff’s Office Interdiction Unit stopped Gregg on the shoulder of Interstate 20 near Aiken based on a window tint violation. The dash and body cameras from the stop showed that upon entering the Gregg’s identifying information into a car-mounted computer, deputies learned that he had an outstanding warrant for an unrelated crime from Georgetown County. Deputies also walked a drug detection canine around Gregg’s vehicle during the stop, and the canine indicated a positive alert for narcotics.
When deputies attempted to detain Gregg to search his vehicle, he ran and tried to reenter his vehicle to flee. A roadside struggle ensued for more than five minutes as dozens of passenger vehicles and commercial trucks zoomed past them at highway speeds less than five feet away. During this scuffle, the video captured Gregg telling the deputies that they will “have to kill him” to detain him.
After Gregg was detained, the deputies searched his vehicle and located 500.9 grams of cocaine. After being checked out by EMS roadside, Gregg admitted that he was delivering the cocaine from an individual in Atlanta to another individual in Conway. In the months that followed, he also admitted his role in the drug trafficking conspiracy to DEA agents.
At trial, Gregg testified that he did not know what he was transporting, and that he thought on an earlier occasion he had transported beauty supplies for a co-conspirator’s wife’s beauty salon. He stated that he fought the deputies because he felt intimidated during the traffic stop and accused agents of lying about the statements he gave during his interviews. Several other members of the conspiracy who had previously pled guilty testified as witnesses. They each said that Gregg knew that he was transporting cocaine, and that he had been doing so for them for several years. They said the ½ kilogram of cocaine Gregg was transporting was worth approximately $25,000.
The jury quickly returned a verdict of guilty.
United States District Judge Sherri A. Lydon presided over the trial and will sentence Gregg after receiving and reviewing a pre-sentence report that will be prepared by the United States Probation Office. Gregg faces a penalty of 5 to 40 years in federal prison and a fine of $1,000,000. He also faces at least four years of court-ordered supervision after prison.
The case was investigated by the U.S. Drug Enforcement Administration and the Aiken County Sheriff’s Office. Assistant United States Attorneys Everett McMillian, Lead Task Force Attorney for the Organized Crime and Drug Enforcement Task Force (OCDETF), and Katie Stoughton, who serves as the Chief of the Office’s Appellate Division, prosecuted the case. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Columbia Woman Sentenced to More than Three Years in Tax Refund SchemeRead the Press Release
COLUMBIA, SOUTH CAROLINA – Alice Felder-Lucas, 58, of Columbia, was sentenced to more than three years in federal prison for false claims against the United States and theft of governmental funds.
According to evidence presented during the defendant’s trial, Felder-Lucas filed fraudulent IRS Form 1040 tax returns petitioning for a tax refund of $708,190.00. As support, Felder-Lucas provided false IRS Form 1099 claiming millions of dollars of income and withholdings. Felder-Lucas’s tax return was flagged by the Internal Revenue Service (“IRS”) for potential fraud. However, the funds were erroneously released to her. Although the IRS was able to claw back approximately $30,000 of the refund once the fraud was discovered, Felder-Lucas had transferred most of the ill-gotten funds to other bank accounts. She used the funds to purchase a new house and car. During her case, Felder-Lucas filed several documents with the Court alleging she was a “sovereign citizen”. The sovereign citizen movement is a broad term applying to a loose association of tax protesters, financial scheme promoters, and conspiracy theorists. Typically, adherents of the theory claim to be answerable only to their view of law and to not be subject to any government statutes, rules, or proceedings. The Court rejected these claims.
“To steal from the Government is to steal from every taxpaying citizen in America," said U.S. Attorney Corey F. Ellis. “The Defendant here stole from the American people and spent that money on luxuries for herself. She deserves to go to prison, and I appreciate our partners with the IRS for making this case possible.”
“Those who might consider preparing false tax returns should be aware of the extremely negative consequences as evidenced today," said Donald “Trey” Eakins, Special Agent in Charge of the IRS’s Charlotte Field Office. "Today's sentencing emphasizes that the Internal Revenue Service and U.S. Attorney’s Office will continue their aggressive pursuit of those who would attempt to defraud America's tax system."
United States District Judge Mary G. Lewis sentenced Felder-Lucas to 41 months imprisonment for each count to run concurrently, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system. Felder-Lucas was also ordered to pay all outstanding tax balances to the IRS and ordered to pay $678,486.97 in restitution.
The case was investigated by the IRS and was prosecuted by Assistant U.S. Attorney T. DeWayne Pearson, who also serves as the Office’s Criminal Chief.
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Pee Dee Woman and Horry County Man Sentenced to Multiple Years in Federal Prison for Distributing Controlled SubstancesRead the Press Release
FLORENCE, SOUTH CAROLINA — Dan Howard Spivey, Jr., 42, of Conway, was sentenced to 10 years in federal prison, and Jasmine McKenith, 32, of Nichols, was sentenced to 4 years in federal prison after pleading guilty to conspiracy to possess with intent to distribute and to distribute controlled substances.
Evidence presented to the Court showed that Spivey and McKenith were involved in a multi-year conspiracy to distribute drugs in and around Horry County. Spivey and McKenith both served as distributors for their co-defendant in the case, Darryl Lamont McKenith. During the course of the conspiracy, Spivey was held accountable for more than one kilogram of heroin and a quantity of fentanyl. Jasmine McKenith was attributable to more than six kilograms of heroin during the conspiracy.
Chief United States District Judge R. Bryan Harwell sentenced Spivey to 120 months imprisonment, to be followed by a 5-year term of court-ordered supervision. Judge Harwell sentenced Jasmine McKenith to 48 months imprisonment, to be followed by a 5-year term of court-ordered supervision. Judge Harwell previously sentenced McKenith and Spivey’s co-conspirators. Darryl Lamont McKenith, 33, of Aynor, received a sentence of 132 months in federal prison, Scorpio Teriell Tisdale, 28, of Gallivants Ferry, received a sentence of 120 months in federal prison, Michael Keith McKenith, 32, of Aynor, received a sentence of 84 months in federal prison and Donna McKenith, 77, of Aynor, received a sentence of time served. There is no parole in the federal system.
This case was investigated by Conway Police Department, Horry County Police Department, and the Drug Enforcement Administration (DEA). Assistant U.S. Attorney Katherine Flynn prosecuted the case.
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U.S. Attorney’s Office Recognizes National Postal Worker DayRead the Press Release
COLUMBIA, SOUTH CAROLINA – Today the U.S. Attorney’s Office is observing National Postal Worker Day by recognizing the men and women of the U.S. Postal Service (USPS), including those with the U.S. Postal Inspection Service and the USPS Office of Inspector General (OIG) who investigate crimes related to the mails.
“As we all know, the men and women of the U.S. Postal Service work rain, sleet, or shine to ensure the U.S. mail system continues to function. Their work is critical and, as we have seen in our own district with the senseless murder of Irene Pressley, can also be dangerous,” said U.S. Attorney Corey F. Ellis. “I also want to thank our law enforcement partners within the USPS. These agents vigorously investigate crimes related to the mails - which include fraud, violence, and drug crimes - and protect the people of South Carolina and throughout the country.”
“The U.S. Postal Service serves 163.1 million addresses in the country — covering every state, city and town,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “The U.S. Postal Inspection Service is dedicated to enforcing the laws that defend the nation’s mail system from illegal and dangerous use, persevering the integrity of the U.S. Mail, and most importantly, providing a safe environment for Postal employees and the American Public. We value our law enforcement partners and the U.S. Attorney’s Office in South Carolina for supporting our mission and all the employees of the U.S. Postal Service across the country.”
Here in South Carolina, 6,798 postal employees from 415 postal facilities work hard every day to deliver letters and parcels to nearly every residence and business in South Carolina. This includes correspondence from loved ones, shipping orders, and important business documents.
As the agencies who police this system, the U.S. Postal Inspection Service investigates crimes relating to the mails, while the USPS OIG focuses on internal USPS cases and fraud against USPS.
In September of 2019, the U.S. Postal Service lost one of their own, Ms. Irene Pressley, 64. Ms. Pressley was brutally murdered while delivering mail on her route near Andrews. Postal Inspectors from South Carolina and all over the nation converged to Williamsburg County to investigate her murder and bring her killers to justice. The trial for the remaining defendants in that case is scheduled for October of this year.
Together, the U.S. Attorney’s Office and the USPS’s law enforcement components have investigated and prosecuted numerous other crimes, including recent investigations leading to multiple arrests in armed robbery and burglary cases here in Columbia, the destruction of postal facilities, financial scams, and major drug trafficking operations.
South Carolina is safer because of the work of the U.S. Postal Inspection Service and USPS OIG. As America heads into its annual celebration of Independence, the U.S. Attorney’s Office especially thanks all the men and women of the U.S. Postal Service for the work they do for this country.
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U.S. Attorney’s Office to Join Partners with U.S. Postal Service for a Press Conference Tomorrow in Columbia at 10 a.m.Read the Press Release
COLUMBIA, SOUTH CAROLINA — United States Attorney Corey F. Ellis announced today that a press conference will be held tomorrow, July 1, 2022, at 10 a.m., at the U.S. Post Office on 1601 Assembly Street in Columbia, South Carolina 29201.
The purpose of the press conference is to recognize National Postal Worker Day, which will include a recognition of significant cases brought by the U.S. Postal Inspection Service and the U.S. Postal Service Office of Inspector General.
Represented at the press conference will be the U.S. Attorney’s Office for the District of South Carolina and representatives of the U.S. Postal Service.
WHEN: Friday, July 1, at 10 a.m.
WHERE: U.S. Post Office
1601 Assembly Street in Columbia, South Carolina 29201
NOTE: Press inquiries regarding logistics should be directed to Assistant U.S. Attorney Derek A. Shoemake at 843-813-0982. Members of the media wishing to attend should arrive at the Post Office fifteen minutes in advance.
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Sumter County Man Pleads Guilty to Wire FraudRead the Press Release
COLUMBIA, SOUTH CAROLINA —Rodney Ellis, 71, of Sumter County, has pleaded guilty to defrauding Sumter Behavioral Health Services (SBHS), a 501c3 non-profit.
Evidence obtained in the investigation revealed that Ellis, between 2013 and 2020, while employed by SBHS as its Financial Officer defrauded the non-profit out of at least $800,000 by diverting funds from SBHS banking accounts to his own personal banking accounts to which he was not entitled.
“This Office is committed to prosecuting economic crimes, especially those that take advantage of organizations that treat some of the most vulnerable in our community,” said U.S. Attorney Corey F. Ellis. “We appreciate the efforts of all state and federal agencies involved in this case.”
“Behavioral health organizations depend on every dollar allocated to treat those seeking help for their substance abuse challenges,” said FBI Columbia Special Agent in Charge, Susan Ferensic. “It is inexcusable for someone with a high-ranking position, like Ellis, to steal the organization’s funds for personal benefit. The FBI will continue to work jointly with the Sumter County Sheriff’s Office and other law enforcement partners to uncover the misuse of funds and hold the perpetrators accountable.”
Ellis faces a maximum penalty of twenty years in federal prison. He also faces a fine of up to $250,000, restitution, and three years of supervision to follow the term of imprisonment. Senior United States District Judge Terry Wooten accepted the guilty plea and will sentence Ellis after receiving and reviewing a sentencing report prepared by the United States Probation Office.
This case was investigated by the FBI and the Sumter County Sheriff’s Department. Assistant U.S. Attorney Amy Bower is prosecuting the case.
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South Carolina Man Pleads Guilty to Felony Charges for Actions During Jan. 6 Capitol BreachRead the Press Release
WASHINGTON – A South Carolina man pleaded guilty today to two felony charges for his actions during the breach of the U.S. Capitol on Jan. 6, 2021. His and others’ actions disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the presidential election.
George Amos Tenney III, 35, of Anderson, South Carolina, pleaded guilty in the District of Columbia to civil disorder and obstruction of an official proceeding. According to court documents, in December 2020, Tenney made plans to travel to Washington on Jan. 6, 2021. He sent a Facebook message on Dec. 28, 2020, that stated, among other things, “It’s starting to look like we may siege the capital building and congress if the electoral votes don’t go right.”
On Jan. 6, Tenney illegally entered the Capitol Building. He moved to the area inside the Rotunda Doors, arriving there at approximately 2:24 p.m. Rioters had amassed outside the doors and were struggling against the police officers attempting to secure the building. Tenney tried to open the Rotunda Doors to allow the rioters inside, and he had contact with multiple federal employees while doing so. He succeeded in opening one of the doors. A police officer who was outside tried to push them closed, and Tenney resisted, pushing against the door to try to keep it open. An employee of the House Sergeant at Arms then ran towards Tenney, pushing him aside in an effort to close the door. Tenney grabbed the employee by the shoulder. He and other rioters surrounded the employee, and a heated conversation began. A rioter from outside the doors forced his way inside and pushed the employee of the House Sergeant at Arms away.
Tenney, meanwhile, continued to stand in the doorway, and locked arms with a Capitol Police officer who was just outside the doors. He and the officer moved inside, towards the Rotunda. Tenney pushed away the officer’s hand. While in the Rotunda, he yelled, “Stand up, Patriots, stand up!” He then returned to the Rotunda Doors, where he assisted rioters entering the building, patting them on the back and helping them move forward. When another Capitol Police officer entered the area, Tenney pushed him to the side. Tenney ultimately had to be pulled back inside so that the Rotunda Doors could be closed to keep other rioters from entering. He then retreated to the Rotunda and exited the Capitol through a window at approximately 2:32 p.m.
Tenney was arrested on June 29, 2021, in Anderson, South Carolina. He is to be sentenced on Oct. 20, 2022. He faces a statutory maximum of five years in prison in prison on the civil disorder charge and up to 20 years in prison on the obstruction charge. The charges also carry potential financial penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Attorney’s Office for the District of Columbia and the Justice Department’s National Security Division are prosecuting the case, with valuable assistance provided by the U.S. Attorney’s Office for the District of South Carolina.
The FBI’s Columbia, South Carolina Field Office investigated the case, with valuable assistance from the FBI’s Washington Field Office, the U.S. Capitol Police and the Metropolitan Police Department
In the 17 months since Jan. 6, 2021, more than 840 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including over 250 individuals charged with assaulting or impeding law enforcement. The investigation remains ongoing.
Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov
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Doc Antle, Owner of Myrtle Beach Safari, and Others Indicted for Federal Wildlife Trafficking and Money Laundering CrimesRead the Press Release
FLORENCE, SOUTH CAROLINA — A federal grand jury in Florence returned a 10-count indictment alleging charges related to wildlife trafficking and money laundering against five individuals:
- Bhagavan Mahamayavi Antle, a/k/a Kevin Antle, a/k/a Doc Antle, 62, of Myrtle Beach;
- Andrew Jon Sawyer a/k/a Omar Sawyer, 52, of Myrtle Beach;
- Meredith Bybee, a/k/a Moksha Bybee, 51, of Myrtle Beach;
- Charles Sammut, 61, of Salinas, California; and
- Jason Clay, 42, of Franklin, Texas
According to the indictment and other court records, Antle is the owner and operator of The Institute for Greatly Endangered and Rare Species (T.I.G.E.R.S), also known as the Myrtle Beach Safari. The Myrtle Beach Safari is a 50-acre wildlife tropical preserve in Myrtle Beach. Sawyer and Bybee are Antle’s employees and business associates.
Sammut is the owner and operator of Vision Quest Ranch, a for-profit corporation that housed captive exotic species and sold tours and safari experiences to guests. Clay is the owner and operator of the Franklin Drive Thru Safari, a for-profit corporation that housed captive exotic species and sold tours and safari experiences to guests.
The indictment alleges that Antle, at various times along with Bybee, Sammut, and Clay, illegally trafficked wildlife in violation of federal law, including the Lacey Act and the Endangered Species Act, and made false records regarding that wildlife. The animals involved included lemurs, cheetahs, and a chimpanzee.
The indictment and a previously-filed federal complaint in the case also allege that over the last several months, Antle and Sawyer laundered more than $500,000 in cash they believed to be the proceeds of an operation to smuggle illegal immigrants across the Mexican border into the United States. The filings allege that Antle had used bulk cash receipts to purchase animals for which he could not use checks, and that Antle planned to conceal the cash he received by inflating tourist numbers at the Myrtle Beach Safari.
Antle and Sawyer each face a maximum of 20 years in federal prison for the charges related to money laundering, and up to five years in federal prison for the charges related to wildlife trafficking. Bybee, Sammut, and Clay each face up to five years in federal prison for the charges related to the wildlife trafficking. Antle and Sawyer were previously granted a bond by a federal magistrate judge as a result of the charges in the federal complaint, and Bybee, Sammut, and Clay are pending arraignment.
The case was investigated by the Federal Bureau of Investigation (FBI) and the U.S. Fish and Wildlife Service. The prosecutors on the case are Assistant U.S. Attorneys Derek A. Shoemake and Amy Bower, with the District of South Carolina, and DOJ Senior Trial Attorney Patrick M. Duggan with DOJ’s Environment and Natural Resources Division’s Environmental Crimes Section
U.S. Attorney Corey F. Ellis stated that all charges in the indictment are merely accusations and that the defendants are presumed innocent unless and until proven guilty.
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antle_indictment.pdfColumbia Man Sentenced to Federal Prison for Illegally Possessing a FirearmRead the Press Release
COLUMBIA, SOUTH CAROLINA — Shaheem Shaquille Williams, 50, of Columbia, was sentenced to three and a half years in federal prison after pleading guilty to possessing a firearm after being convicted of a prior felony.
Evidence presented to the Court showed that on August 16, 2021, a Richland County deputy stopped Williams after determining the tag on the vehicle did not belong on the car he was driving. After the deputy realized Williams did not possess a driver’s license, Williams ran from the traffic stop. The deputy chased Williams and saw him throw down an object that was later determined to be a firearm. After having to wrestle with Williams and tase him, another officer arrived and the two deputies were able to take Williams into custody. After arresting Williams, the deputy retraced the path of the pursuit and found the firearm laying in the yard of a nearby home.
Senior United States District Judge Cameron McGowan Currie sentenced Williams to 43 months imprisonment, to be followed by a 3-year term of court-ordered supervision. There is no parole in the federal system.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Richland County Sheriff’s Department. Assistant U.S. Attorney William K. Witherspoon prosecuted the case.
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Columbia Man Sentenced to 5 Years in Federal Prison for Fraud Scheme that Amassed 94 Firearms and 7 Bump StocksRead the Press Release
COLUMBIA, SOUTH CAROLINA — Edward Daniel Kimpton, Jr., 26, of Columbia, was sentenced to 5 years in federal prison after pleading guilty to wire fraud and possession of stolen firearms.
Evidence presented to the Court showed that from June 2018 through his arrest in April 2020, Kimpton operated an elaborate fraud scheme that included the use of 16 pseudonyms or names, 58 e-mail addresses, and several financial accounts in false and fraudulent names.
During his scheme, Kimpton ordered high value products from individual sellers and retailers online and then diverted the packages mid-shipment, sometimes by posing as the seller or shipper. After he took possession of the packages, Kimpton filed claims that he never received them, causing money to be reverted and allowing Kimpton to take both the shipments and the money he purportedly paid. Kimpton defrauded at least 27 victims in 17 states.
During court-authorized searches in April 2020, ATF recovered from Kimpton what he amassed during the fraud – 94 firearms, including an illegal short-barreled shotgun and a .50 caliber rifle, as well as 7 illegal bump stocks, more than 23,000 rounds of ammunition, body armor, tactical helmets, tactical clothing, firearm scopes, gas masks, gas mask filters, indoor chemical gas grenades, firearm accessories, medic kits, and luxury consumer goods.
At sentencing, the Court held Kimpton accountable for the possession of machineguns for possessing the 7 bump stocks, which are devices that allow a semiautomatic firearm to shoot a continuous firing cycle by harnessing the recoil energy of the firearm. Bump stocks are illegal under federal law.
Senior United States District Judge Joe Anderson sentenced Kimpton to 5 years in prison, the maximum allowable under the plea agreement, to be followed by a 3-year term of court-ordered supervision. There is no parole in the federal system.
At sentencing, the Court also ordered Kimpton to pay victims $44,317.15 in restitution. Restitution will be paid from $73,636.03 seized from a Kimpton bank account as fraud proceeds, and the Court ordered the balance to be forfeited.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the ATF and the United States Secret Service, with assistance from the Richland County Sheriff’s Department and the Lexington County Sheriff’s Department. Assistant U.S. Attorney Elliott B. Daniels prosecuted the case.
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