District of South Carolina
Press releases recorded for this federal judicial district.
Charleston Man Sentenced to Thirteen Years in Federal Prison for Drug and Gun OffenseRead the Press Release
Charleston, South Carolina --- Acting United States Attorney M. Rhett DeHart, announced today that Joseph Roberto Major, 33, of North Charleston, was sentenced to thirteen years in federal prison after pleading guilty to possession of a firearm in furtherance of a drug trafficking crime.
Evidence presented to the court showed that on November 22, 2017, Major was arrested at a North Charleston night club after pointing a gun at a woman and threatening to “blow her head off.” Club security restrained Major and recovered a Glock from his waistband. Responding officers searched Major’s car and discovered multiple bags of pills that ultimately tested positive for methamphetamine. Major was also charged with being a felon-in-possession of a firearm in connection with a separate incident at the same club in January of 2017.
On June 23, 2021, Major pleaded guilty to possessing a firearm in furtherance of drug trafficking in connection with the November 2017 incident. Major has a long criminal history, which includes prior convictions for distribution of cocaine, possession with intent to distribute cocaine, assault and battery of a high and aggravated nature, unlawful carrying of a pistol, possession of drug paraphernalia, and multiple convictions for disorderly conduct.
United States District Judge David Norton sentenced Major to 156 months in federal prison, to be followed by a five-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and North Charleston Police Department 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 Chris Schoen prosecuted the case.
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Federal Indictment Returned Against Nursing Director for Producing Fraudulent COVID Vaccine Cards and Lying to Federal InvestigatorsRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that a Federal Grand Jury in Columbia returned a multiple-count indictment in connection with the production of fraudulent COVID-19 Vaccination Record Cards, the first such criminal prosecution in the District of South Carolina.
Tammy McDonald, 53, of Columbia, was charged in a three-count indictment with two counts of producing fraudulent COVID-19 Vaccination Record Cards and one count of lying to federal investigators about her role in producing the cards.
“Although the indictment speaks for itself, creating fraudulent or fake vaccine cards for those who have not been vaccinated poses a direct threat to the health of the people of South Carolina,” said Acting U.S. Attorney DeHart. “I want to thank our federal and state partners for their quick work in acting on this matter. This office will continue to prosecute fraud related to the Coronavirus in all its forms, and this case speaks to those efforts.”
“The indictment alleges McDonald defrauded and endangered the public by creating and distributing fake COVID-19 vaccination cards. Engaging in such illegal activities undermines the ongoing pandemic response efforts,” stated Derrick L. Jackson, Special Agent in Charge with the Department of Health and Human Services (HHS) Office of Inspector General. “We remain committed to working with our law enforcement partners to investigate individuals who are exploiting the pandemic and people for personal gain.”
“Since the beginning of the pandemic, the FBI and its partners have been at the forefront of investigating crimes involving fraudulent COVID-19 schemes,” said Susan Ferensic, Special Agent in Charge of the Federal Bureau of Investigation (FBI) Columbia Field Office. “Producing fraudulent vaccination cards is a serious matter and is not taken lightly. Anyone leading or participating in this type of activity should know there will be consequences.”
The indictment alleges that McDonald, who worked as the Director of Nursing Services at a skilled nursing and rehabilitation center in Columbia, produced the fraudulent vaccine cards on June 20, 2021, and July 28, 2021. The indictment further alleges that on October 22, 2021, McDonald was questioned by federal agents with HHS and FBI and lied by stating she did not have access to COVID-19 Vaccination Record Cards and that she never produced a false or inaccurate vaccine card. The indictment alleges this was false because she had personally filled out vaccine cards for individuals she knew had not received a COVID-19 vaccine.
McDonald, who has pleaded not guilty on all three charges, was arraigned today by a United States Magistrate Judge in Columbia. She was granted a $10,000 bond. McDonald faces up to 15 years in prison for each count of producing a fraudulent COVID-19 Vaccination Record Card, and five years in prison for lying to federal investigators.
The case was investigated by HHS and FBI, with assistance from the South Carolina Law Enforcement Division (SLED). Assistant U.S. Attorney Derek A. Shoemake, who also serves as the District’s Coronavirus Fraud Coordinator, is prosecuting the case.
Acting U.S. Attorney DeHart stated that all charges in the indictment are merely accusations and that McDonald is presumed innocent unless and until proven guilty.
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.
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Orangeburg Brothers Sentenced on Federal Firearm Charges Related to ShootingRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that brothers Abrian Dayquan Sabb, 26, of Orangeburg, and Darius Bernard Sabb, 23, of Georgetown, were sentenced today in federal court after pleading guilty to offenses related to making false statements to a federal firearms dealer during the purchase of a firearm. Abrian Sabb was sentenced to seven years in federal prison, and Darius Sabb was sentenced to three years probation.
Evidence presented to the court showed that on the morning of April 10, 2019, Abrian Sabb, while armed with a loaded AR-15 semi-automatic rifle with a high-capacity magazine, entered the emergency room of The Regional Medical Center in Orangeburg and began shooting in the hallway. A nurse was struck by a bullet to the chest, causing serious bodily injuries. Law enforcement responded and arrested Abrian Sabb at the scene, charging him with various state charges. Upon learning of the incident, Darius Sabb went to local law enforcement and advised that he had purchased the firearm for his brother.
The investigation revealed that the day before, April 9, 2019, Abrian Sabb had been involved in a domestic argument at his residence, which resulted in law enforcement responding and confiscating his handgun. Later that day, Abrian Sabb asked his brother, Darius Sabb, to go with him to a local firearms dealer to purchase him another firearm. Abrian Sabb provided his brother money and requested that he buy an AR-15 semi-automatic rifle with a 100-round magazine and two boxes of ammunition for him. Darius Sabb falsely filled out the ATF 4473 form attesting that he was the actual purchaser of the firearm and bought it.
Immediately upon leaving the firearms dealer’s store, Darius Sabb turned the items over to Abrian Sabb. Later that day, Abrian Sabb’s girlfriend called Darius Sabb and complained about him purchasing the firearm for Abrian Sabb as she indicated she was fearful. Darius Sabb then retrieved the rifle and hid it at another person’s home. However, the next morning, Abrian Sabb found out where the firearm was located, kicked in the front door of the residence, and retrieved the firearm. Later that morning, he and his girlfriend traveled to the medical center to seek help for his mental illness. At some point, he left the medical center, went to his vehicle, returned with the firearm, and began shooting.
United States District Judge Mary Geiger Lewis sentenced Abrian Sabb to 84 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system. She sentenced Darius Sabb to three years’ probation with 180 days of home detention and GPS location monitoring. State court charges related to the shooting remain pending in Orangeburg County against Abrian Sabb, and he is innocent of those charges unless proven guilty.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Orangeburg County Sheriff’s Office 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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Former State Department Employee Sentenced to Federal Prison for Embezzling more than $150,000 from Department of DefenseRead the Press Release
Charleston, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Roudy Pierre-Louis, 49, a citizen of Haiti and former State Department employee, was sentenced to more than a year in federal prison after pleading guilty to committing Wire Fraud.
Evidence presented to the court showed that from 2015 through August 2018, Pierre-Louis was an employee of the State Department who worked at the Embassy of Haiti as the sole budget analyst for the Security Coordination Office (SCO). In this role, Pierre-Louis was responsible for managing all lines of accounting for the State Department and Department of Defense (DoD) associated with the SCO, which included per diem cash advances for individuals travelling to United States Southern Command events. Pierre-Louis also was designated as the SCO’s Occasional Money Holder, allowing him to receive cash on behalf of other individuals who did not have full access to the Embassy in order to obtain cash advances for travel expenses, including, but not limited to, per diem, lodging, and air fare.
The Embassy maintained a vault, or “cash cage,” from which cash advances could be disbursed to employees providing documentation of supervisory approval. This cash cage was reconciled on a daily basis, as cash on hand along with approved disbursements were required to be reconciled and approved by a financial officer with the State Department in order to balance and replenish the cash supply.
Beginning in 2015 and continuing through at least August 2018, Pierre-Louis submitted fraudulent vouchers and supporting documents for cash advances in the names of Haitian Nationals that contained forged signatures of requesting and approving DoD supervisors.
Unaware of this fraud, the Department of State released these cash funds to Pierre-Louis, which were subsequently reimbursed by the Department of Defense. During the relevant time period, from 2015 to August 2018, Pierre-Louis embezzled at least $156,950 from his wire fraud scheme.
United States District Judge Richard M. Gergel sentenced Pierre-Louis to 12 months and one day in federal prison, to be followed by a three-year term of court-ordered supervision, and ordered that Pierre-Louis pay full restitution in this case. There is no parole in the federal system.
The case was investigated by the State Department Office of Inspector General’s Charleston, South Carolina Field Office, and the Major Procurement Fraud Unit of the U.S. Army Criminal Investigation Command.
Assistant United States Attorney Allessandra Stewart prosecuted the case.
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South Carolina Chiropractor Pleads Guilty and Agrees to $9 Million False Claims Act Consent JudgmentRead the Press Release
Washington, D.C. --- On Nov. 8, the U.S. District Court for the District of South Carolina entered a $9 million civil consent judgment for the United States against South Carolina chiropractor Daniel McCollum under the False Claims Act. On that same day, the U.S. Attorney’s Office for the District of South Carolina filed an information and plea agreement in which McCollum admitted to engaging in a conspiracy to pay illegal kickbacks and to defraud healthcare programs by billing for unnecessary medical services. The maximum criminal penalty McCollum could face is five years in prison and a fine of $250,000. A sentencing date has not been set.
McCollum owned and operated pain management clinics, laboratories and a pharmacy in South Carolina. He also operated pain management clinics in North Carolina and Tennessee. McCollum’s clinics did business collectively as Pain Management Associates.
On May 31, 2019, the United States filed a civil complaint alleging that McCollum caused the submission of false claims to federal health care programs arising from kickbacks he paid for urine drug testing (UDT) referrals in violation of the Anti-Kickback Statute; referrals prohibited under the Stark Law from physicians with whom McCollum had financial relationships; and claims for UDT and other services that were not medically necessary and that lacked a legitimate medical purpose.
On Oct. 29, McCollum agreed to resolve the government’s False Claims Act allegations, including admitting that he violated the Anti-Kickback Statute by providing kickbacks in the form of a direct bill program whereby his laboratory, Labsource, gave referring providers an opportunity to earn revenue generated from their commercially-insured UDT referrals as an inducement for those providers to refer all of their federally-insured UDT patients to Labsource. McCollum also caused medically unnecessary prescriptions for pain creams often without the knowledge or approval of the patients’ healthcare providers and regardless of whether the prescription had a legitimate medical purpose. McCollum admitted that the aforementioned conduct constituted misrepresentations, fraudulent omissions and/or deceptive conduct, and that he engaged in this conduct with an intent to deceive the United States and cause the United States to pay false or fraudulent federal healthcare program claims.
Congress passed the Stark Law and the Anti-Kickback Statute to prevent financial incentives from improperly influencing medical decision-making, which can lead to excessive and unnecessary tests and services. Among other things, the Stark Law prohibits billing Medicare for laboratory testing services referred by a physician who has a financial relationship with the laboratory. The Anti Kickback Statute prohibits offering or paying anything of value to induce the referral of items or services covered by federal healthcare programs, including laboratory testing services.
“Improper financial relationships between healthcare providers and laboratories can lead to overutilization and increase the cost of healthcare services paid for by the taxpayers,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The provision of medical services and prescriptions should be based on a patient’s medical needs rather than the financial interests of providers.”
“This office will use all tools necessary to ensure justice, deterrence and prevention of healthcare fraud,” said Acting U.S. Attorney M. Rhett DeHart for the District of South Carolina. “The criminal guilty plea and the civil consent judgment entered against the defendant in this case demonstrates that effort.”
“McCollum engaged in deceptive conduct by exploiting the vital programs on which they depend,” said Special Agent in Charge Derrick L. Jackson of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “We will continue to work with our law enforcement partners to hold accountable individuals who endanger the integrity of federal healthcare programs and the beneficiaries they serve.”
“The TRICARE Program is vital to the health and readiness of our active duty service members, retirees and their families,” said Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office. “Today’s announcement should leave no doubt that DCIS and its law enforcement partners remain committed to rooting out fraud, holding bad actors accountable and protecting the integrity of the Department of Defense.”
The civil judgment resolves claims brought under the qui tam or whistleblower provisions of the False Claims Act by Donna Rauch, Muriel Calhoun, Brandy Knight and Karen Mathewson, all former employees of pain management clinics owned or operated by McCollum. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam cases are captioned United States ex rel. Rauch, et al. v. Oaktree Medical Centre, P.C., et al., No. 6:15-cv-01589-DCC (D.S.C.); United States ex rel. Mathewson v. Dr. Daniel A. McCollum, et al., No. 6:17-CV-01190-DCC (D.S.C.); and United States ex rel. Hawkins v. Pain Management Associates of the Carolinas, LLC, et al., No. 8:18-cv-02952-DCC (D.S.C.). In connection with this matter, the United States previously was awarded civil judgments totaling over $140 million against entities owned or operated by McCollum: Oaktree Medical Centre P.C., FirstChoice Healthcare P.C., Labsource LLC, Pain Management Associates of the Carolinas LLC, Pain Management Associates of North Carolina P.C., ProLab LLC and ProCare Counseling Center LLC.
The civil judgment and criminal plea obtained in this matter were the result of a coordinated effort between 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 FBI, HHS-OIG, the South Carolina Attorney General’s Office and the DCIS.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare 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 litigation was handled by Fraud Section Attorneys Yolonda Campbell, Michael Kass, Christopher Terranova and David Wiseman and Assistant U.S. Attorneys Beth Warren and Bill Watkins for the District of South Carolina.
Note: View a copy of the stipulation of settlement here.
Repeat Child Sex Offender from Rock Hill Sentenced to More Than 11 and a Half Years in Federal PrisonRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Xanthus Nakia Murdaugh, 46, of Rock Hill, was sentenced to more than 11 and 1/2 years in federal prison after pleading guilty to an offense related to the attempted sexual exploitation of a child.
Evidence presented to the court showed that Murdaugh is a repeat offender, having a prior federal child pornography conviction and a prior state conviction for Solicitation of a Crime Against Nature. Murdaugh also admitted to the sexual abuse of numerous minors, including children in the foster system, for which he had never been held accountable.
Evidence presented in court further showed that on November 6, 2019, Murdaugh communicated with undercover law enforcement on a social media application that allows users anonymously communicate with other users. On that same date, Murdaugh began speaking with who he was told was a mother who needed help with her children. After Murdaugh was told the mother had a 13-year-old daughter, he indicated an interest in having sex with the minor. With condoms and lubricant, Murdaugh drove to a residence where he was told the 13-year-old minor would be present. Murdaugh was arrested that night and has remained in custody since that time. Murdaugh ultimately pled guilty to the attempted coercion and enticement of a minor.
United States District Judge J. Michelle Childs sentenced Murdaugh to 140 months in federal prison, near the top of his advisory guideline range, to be followed by a 10-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Department of Homeland Security (HSI), York County Sherriff’s Office, Federal Bureau of Investigation (FBI), United States Secret Service, South Carolina Attorney General’s Office, North Carolina State Bureau of Investigation, and Naval Criminal Investigative Service. Assistant United States Attorney Elliott B. Daniels prosecuted the case.
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.
Justice Department Announces $139 Million for Law Enforcement Hiring to Advance Community PolicingRead the Press Release
Columbia, South Carolina --- The Department of Justice today announced more than $139 million in grant funding through the department’s Office of Community Oriented Policing Services (COPS Office) COPS Hiring Program (CHP). The awards provide direct funding to 183 law enforcement agencies across the nation, allowing those agencies to hire 1,066 additional full-time law enforcement professionals. In the District of South Carolina, three communities were awarded funding totaling just over $1.4 million.
“We are committed to providing police departments with the resources needed to help ensure community safety and build community trust,” said Attorney General Merrick B. Garland. “The grants we are announcing today will enable law enforcement agencies across the country to hire more than 1,000 additional officers to support vitally important community oriented policing programs.”
“These grants highlight the Department of Justice’s commitment to law enforcement resources here in South Carolina,” said Acting U.S. Attorney DeHart. “This Office enjoys strong relationships with our local law enforcement partners, and we support their important work. These funds will mean nearly a dozen additional officers in these communities.”
The following communities in South Carolina received awards:
- City of North Myrtle Beach, $750,000;
- Williamsburg County, $422,804; and
- Town of Yemassee, $229,782.
CHP is a competitive award program intended to reduce crime and advance public safety through community policing. CHP provides funds directly to law enforcement agencies to hire new or rehire additional career law enforcement officers, thereby increasing their community policing capacity and crime prevention efforts. Of the 183 agencies awarded grants today, approximately half will use the funding to focus on building legitimacy and trust between law enforcement and communities; 41 agencies will seek to address high rates of gun violence; 21 will focus on other areas of violence; and 19 will focus CHP resources on combating hate and domestic extremism or supporting police-based responses to persons in crisis. The complete list of awards can be found here. ‘
Since its creation in 1994, COPS has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and Tribal law enforcement agencies to fund the hiring and redeployment of more than 135,000 officers. CHP, COPS’ flagship program, continues to be in demand today: In FY21, COPS received 590 applications requesting nearly 3,000 law enforcement positions. For FY22, President Biden has requested $537 million for CHP, an increase of $300 million.
To learn more about CHP, please visit https://cops.usdoj.gov/chp-award. For additional information about the COPS Office, please visit https://cops.usdoj.gov/.
The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. The only Department of Justice agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served.
Columbia Man Sentenced to More Than Seven Years for Possessing AmmunitionRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Leonard Earl Mitchell, 30, of Columbia, was sentenced to more than seven years in federal prison after pleading guilty to being a felon in possession of ammunition.
Evidence presented to the court showed that after officers with the City of Columbia Police Department received a report of shots fired on Two Notch Road, they located nine spent shell casings in a parking lot. In reviewing the surveillance footage, officers saw an unknown person discharge two rounds from a car in the direction of Mitchell as he was exiting a business. After getting in a parked car, Mitchell retrieved a firearm and discharged ten rounds at the passing car and fled.
A City of Columbia police officer was able to identify Mitchell as a person involved in the shooting from a prior encounter, in addition to Mitchell’s distinctive facial tattoos. When Mitchell was arrested, he had a 9mm pistol that matched the shell casings found in the parking lot.
Mitchell had previously been convicted of several felony offenses, including failure to stop for blue lights, assault and battery of a high and aggravated nature, assault and battery second degree, distribution of marijuana, assault and battery first degree, possession of methamphetamine/cocaine, and carrying or concealing weapon by an inmate. As such, Mitchell is prohibited from possessing a firearm or ammunition.
United States District Judge Mary Geiger Lewis sentenced Mitchell to 90 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 Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and City of Columbia Police Department.
The case was prosecuted as part of the 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 William K. Witherspoon and Special Assistant United States Attorney Kristen Bales prosecuted the case.
South Carolina Chiropractor Pleads Guilty and Agrees to $9 Million False Claims Act Consent JudgmentRead the Press Release
On Nov. 8, the U.S. District Court for the District of South Carolina entered a $9 million civil consent judgment for the United States against South Carolina chiropractor Daniel McCollum under the False Claims Act. On that same day, the U.S. Attorney’s Office for the District of South Carolina filed an information and plea agreement in which McCollum admitted to engaging in a conspiracy to pay illegal kickbacks and to defraud healthcare programs by billing for unnecessary medical services. The maximum criminal penalty McCollum could face is five years in prison and a fine of $250,000. A sentencing date has not been set.
McCollum owned and operated pain management clinics, laboratories and a pharmacy in South Carolina. He also operated pain management clinics in North Carolina and Tennessee. McCollum’s clinics did business collectively as Pain Management Associates.
On May 31, 2019, the United States filed a civil complaint alleging that McCollum caused the submission of false claims to federal health care programs arising from kickbacks he paid for urine drug testing (UDT) referrals in violation of the Anti-Kickback Statute; referrals prohibited under the Stark Law from physicians with whom McCollum had financial relationships; and claims for UDT and other services that were not medically necessary and that lacked a legitimate medical purpose.
On Oct. 29, McCollum agreed to resolve the government’s False Claims Act allegations, including admitting that he violated the Anti-Kickback Statute by providing kickbacks in the form of a direct bill program whereby his laboratory, Labsource, gave referring providers an opportunity to earn revenue generated from their commercially-insured UDT referrals as an inducement for those providers to refer all of their federally-insured UDT patients to Labsource. McCollum also caused medically unnecessary prescriptions for pain creams often without the knowledge or approval of the patients’ healthcare providers and regardless of whether the prescription had a legitimate medical purpose. McCollum admitted that the aforementioned conduct constituted misrepresentations, fraudulent omissions and/or deceptive conduct, and that he engaged in this conduct with an intent to deceive the United States and cause the United States to pay false or fraudulent federal healthcare program claims.
Congress passed the Stark Law and the Anti-Kickback Statute to prevent financial incentives from improperly influencing medical decision-making, which can lead to excessive and unnecessary tests and services. Among other things, the Stark Law prohibits billing Medicare for laboratory testing services referred by a physician who has a financial relationship with the laboratory. The Anti‑Kickback Statute prohibits offering or paying anything of value to induce the referral of items or services covered by federal healthcare programs, including laboratory testing services.
“Improper financial relationships between healthcare providers and laboratories can lead to overutilization and increase the cost of healthcare services paid for by the taxpayers,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The provision of medical services and prescriptions should be based on a patient’s medical needs rather than the financial interests of providers.”
“This office will use all tools necessary to ensure justice, deterrence and prevention of healthcare fraud,” said Acting U.S. Attorney M. Rhett DeHart for the District of South Carolina. “The criminal guilty plea and the civil consent judgment entered against the defendant in this case demonstrates that effort.”
“McCollum engaged in deceptive conduct by exploiting the vital programs on which they depend,” said Special Agent in Charge Derrick L. Jackson of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “We will continue to work with our law enforcement partners to hold accountable individuals who endanger the integrity of federal healthcare programs and the beneficiaries they serve.”
“The TRICARE Program is vital to the health and readiness of our active duty service members, retirees and their families,” said Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office. “Today’s announcement should leave no doubt that DCIS and its law enforcement partners remain committed to rooting out fraud, holding bad actors accountable and protecting the integrity of the Department of Defense.”
The civil judgment resolves claims brought under the qui tam or whistleblower provisions of the False Claims Act by Donna Rauch, Muriel Calhoun, Brandy Knight and Karen Mathewson, all former employees of pain management clinics owned or operated by McCollum. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam cases are captioned United States ex rel. Rauch, et al. v. Oaktree Medical Centre, P.C., et al., No. 6:15-cv-01589-DCC (D.S.C.); United States ex rel. Mathewson v. Dr. Daniel A. McCollum, et al., No. 6:17-CV-01190-DCC (D.S.C.); and United States ex rel. Hawkins v. Pain Management Associates of the Carolinas, LLC, et al., No. 8:18-cv-02952-DCC (D.S.C.). In connection with this matter, the United States previously was awarded civil judgments totaling over $140 million against entities owned or operated by McCollum: Oaktree Medical Centre P.C., FirstChoice Healthcare P.C., Labsource LLC, Pain Management Associates of the Carolinas LLC, Pain Management Associates of North Carolina P.C., ProLab LLC and ProCare Counseling Center LLC.
The civil judgment and criminal plea obtained in this matter were the result of a coordinated effort between 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 FBI, HHS-OIG, the South Carolina Attorney General’s Office and the DCIS.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare 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 litigation was handled by Fraud Section Attorneys Yolonda Campbell, Michael Kass, Christopher Terranova and David Wiseman and Assistant U.S. Attorneys Beth Warren and Bill Watkins for the District of South Carolina.
Tech Company and CEO Plead Guilty to Twenty Counts of Wire Fraud Mid-TrialRead the Press Release
Charleston, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Micfo, LLC, a tech company located in Charleston, and its chief executive officer (CEO), Amir Golestan, 38, of Charleston, have both pleaded guilty to twenty counts of wire fraud. Specifically, both defendants pled mid-way through a federal trial after evidence presented in the case showed Golestan, acting through Micfo, created fictitious persons and companies to sell fraudulently obtained Internet address rights for millions of dollars.
“Corporate and executive malfeasance can be difficult to detect and even harder to prosecute, and this case is an excellent example of the success we can achieve in spite of this difficulty when we work with our federal and agency partners,” said Acting U.S. Attorney DeHart. “This office greatly appreciates the hard work of the Federal Bureau of Investigation (FBI) and the American Registry for Internet Numbers (ARIN) on this case. I want to especially recognize the efforts of ARIN’s Chief Customer Officer John Sweeting, General Counsel Michael Abejuela, and their outside counsel Steve Ryan and Sam Neel from McDermott Will & Emery LLP.”
“Corporate wrongdoers often avoid accountability by obscuring their criminal conduct through complicated business procedures or by operating in areas unfamiliar to most people,” said Criminal Chief Nathan Williams, who prosecuted the case alongside Assistant United States Attorney Amy Bower. “The world of Internet resources is one of those areas. However, this case shows that the FBI and U.S. Attorney’s Office, along with other agency partners, are capable of detecting complex crimes and prosecuting corporate and executive criminals.”
“Like many corporate fraud criminals often do, Golestan made the mistake of assuming his scheme would not be discovered,” said Susan Ferensic, Special Agent in Charge of the FBI Columbia Field Office. “Make no mistake, the FBI along with our local, state, and federal partners, will work nonstop to uncover and pursue charges for criminals who adversely affect our Internet infrastructure.”
“ARIN is grateful for the hard work by the U.S. Attorney’s Office in South Carolina and the FBI to hold Mr. Golestan and Micfo accountable for the complex fraud perpetrated against ARIN,” said John Curran, ARIN’s President and CEO. “Mr. Golestan’s scheme harmed ARIN and our community of Internet registry customers, and we hope that this outcome will send a clear message to any other parties contemplating fraudulent schemes to obtain or transfer Internet resources”
Evidence presented during the trial showed that Golestan started Micfo in Charleston in 1999. The company represented itself as providing web hosting and other Internet-based services. From February 2014 until the federal indictment in this case in May 2019, Golestan, as CEO of Micfo, created ten separate and fictitious companies which he referred to as “Channel Partners.” The purpose of these Channel Partners was to obtain address rights to Internet Protocol (IP) version 4 addresses (IPv4) from ARIN.
IPv4 addresses are numerical labels assigned to each device connected to a computer network that uses the Internet for communication. ARIN is a nonprofit organization that administers IP address rights, allocations, and transfers in the United States, Canada, and parts of the Caribbean. To obtain an IP address allocation from ARIN, per its policies, an entity must provide a need-based justification. ARIN’s pool of IPv4 addresses has been depleted so there has been an increasing demand, which has resulted in a secondary market where prices for a single IPv4 address have increased dramatically.
Golestan created the fictitious Channel Partners, which would sometimes include creating web pages and fictional employees, to make the companies look legitimate and meet ARIN’s need-based justification policies for allocation of IPv4 addresses. Golestan, using the fake companies, was granted the rights to hundreds of thousands of IPv4 addresses from ARIN worth tens of millions of dollars. Once Golestan had fraudulently obtained the IPv4 address rights, he began to sell those rights for millions of dollars.
As a result of his fraudulent scheme, Golestan pocketed approximately $3.5 million dollars, with another $6.2 million dollars waiting in escrow that would have went to Golestan had he not been caught. Although Golestan and his company initially went to trial, after two days and testimony from eight Government witnesses, both Micfo and Golestan pleaded guilty to all twenty counts of wire fraud without a plea agreement.
Golestan faces of maximum penalty under each count of 20 years in federal prison, a fine of $250,000, 3 years of supervision to follow the term of imprisonment, and restitution. Micfo, the company, faces a maximum fine under each count of $500,000. United States District Judge Richard M. Gergel accepted the guilty pleas and will sentence Golestan after receiving and reviewing a sentencing report prepared by the United States Probation Office.
The case was investigated by the FBI. Assistant United States Attorneys Nathan Williams and Amy Bower are prosecuting the case.
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Gaston Man Sentenced to More Than Twelve Years in Federal Prison on Drug ChargeRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Johnny Ray Kinsey, Jr., 46, of Gaston, was sentenced to more than twelve years in federal prison after pleading guilty to possession with intent to distribute methamphetamine.
Evidence presented to the court showed that on June 15, 2018, a Trooper with South Carolina Highway Patrol responded to a vehicle hit and run call. After responding to the initial hit and run call, the Trooper then met with a Greenwood County Sheriff’s Office Deputy. The Deputy had stopped a vehicle, driven by Kinsey, that matched the description of the vehicle that failed to stop during the hit and run. Before leaving the hit and run scene, the Trooper picked up two pieces of plastic from a side mirror that he believed were from the suspect’s vehicle. After arriving on scene, the Trooper observed fresh damage to the side mirror of Kinsey’s vehicle. When the Trooper placed the pieces of plastic to the damage, it fit perfectly. Kinsey was arrested for driving under the influence and hit and run. An inventory search located over 400 grams of methamphetamine in a backpack under the driver’s seat of the vehicle.
Kinsey’s prior record includes a 1996 criminal domestic violence, a 2003 criminal domestic violence, a 2008 criminal domestic violence second offense, a 2011 damage to property, a 2013 shoplifting, a 2014 manufacturing methamphetamine, and several probation violations.
Senior United States District Judge Henry M. Herlong sentenced Kinsey to 151 months in federal prison, to be followed by a five-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Drug Enforcement Administration (DEA), South Carolina Highway Patrol, and the Greenwood County Sheriff’s Office.
The case was prosecuted as part of the 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.
Special Assistant United States Attorney Casey Rankin Smith prosecuted the case.
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Federal Jury Finds Inmate Guilty of Brutal Prison AssaultRead the Press Release
Charleston, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that federal inmate George Hall was convicted following a jury trial in federal court for charges stemming from a violent prison attack. Hall’s trial marks the first federal criminal jury trial in Charleston since the start of the COVID-19 pandemic in the United States in March of 2020.
Evidence presented by the Government during the trial established that Hall attacked another inmate from behind with a homemade prison weapon constructed from a prison belt and a metal combination lock. Hall repeatedly struck the victim in the head and face with this weapon and stood over him beating him after he fell to the ground. The victim was ultimately able to flee, but not before suffering numerous lacerations, a fractured skull, and a subarachnoid hemorrhage. Prison officials found the victim bleeding in his cell after following a trail of blood from the scene of the attack. The victim survived but was hospitalized for multiple nights and suffered temporary hearing loss and permanent scarring from the assault.
Video footage of the attack showed that the victim never struck Hall or fought back, and he testified that he had never even spoken to Hall prior to being assaulted. At the time of the attack, Hall was serving a 25-year prison sentence for the attempted murder of a U.S. Postal carrier in Florida in 1993. The jury took less than an hour to find Hall guilty on all charges, including assault with a dangerous weapon with intent to cause injury and assault resulting in serious injuries.
United States District Judge Richard M. Gergel presided over the trial and will sentence Hall after receiving and reviewing a pre-sentence report prepared by the United States Probation Office. Hall faces up to ten years in federal prison.
Citing the advice of medical professionals, the court implemented special procedures to minimize the risk of COVID-19 transmission. Masked jurors were seated in the gallery to allow for social distancing, while the prosecution and defense attorneys sat facing one another in the center of the courtroom between the jury and the judge.
This case was investigated by the Federal Bureau of Investigation.
Acting United States Attorney M. Rhett DeHart and Assistant United States Attorney Chris Schoen tried the case.
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Aiken Man Sentenced to Ten Years in Federal Prison on Ammunition and Drug ChargesRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Aaron Shawayne Griffin, 29, of Aiken, was sentenced to ten years in federal prison after pleading guilty to felon in possession of ammunition and possession with intent to distribute methamphetamine.
Evidence presented to the court showed that on September 5, 2018, a deputy with the Lexington County Sheriff’s Department stopped Griffin for speeding. As the deputy approached the passenger side of the vehicle, he could smell the odor of marijuana coming from the vehicle. During a search of the vehicle, deputies located a backpack containing a large amount of cash, over 800 grams of methamphetamine, and two firearm magazines loaded with .40 caliber ammunition and 9mm ammunition.
Griffin’s prior record includes a 2010 simple possession of marijuana and resisting arrest and a 2015 misprision of a felony. Griffin is a validated gang member and was on probation at the time of the offense.
United States District Judge J. Michelle Childs sentenced Griffin to 120 months in federal prison, to be followed by a five-year term of court-ordered supervision. There is no parole in the federal system.
This case was investigated by the Drug Enforcement Administration (DEA) and Lexington County Sheriff’s Department.
The case was prosecuted as part of the 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.
Special Assistant United States Attorney Casey Rankin Smith prosecuted the case.
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Seven Plead Guilty to Health Care Fraud Conspiracy Involving False Billing for Children’s Behavioral Health ServicesRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that seven criminal defendants have pleaded guilty to charges related to a Medicaid fraud conspiracy arising from the false billing of behavioral health services for children.
The defendants are all former owners, employees, or business associates of Wrights Care Services, LLC, a North Carolina-based provider of rehabilitative behavioral health services. Today’s guilty plea of former owner Daniel Wright marks the seventh guilty plea in the case, the result of a years-long investigation and prosecution led by the United States Attorney’s Office and Federal Bureau of Investigation (FBI) in cooperation with the South Carolina Attorney General’s Office.
“Health care fraud will be prosecuted to the fullest extent of the law.” said Acting U.S. Attorney DeHart. “It is a betrayal of public trust and diverts scarce resources from Americans who need health care coverage.”
“For several years, Wright and the other defendants took advantage of Medicaid, which benefits over one million low-income South Carolinians,” said Susan Ferensic, Special Agent in Charge of the FBI Columbia Field Office. “Healthcare fraud continues to be at the forefront of crimes our office investigates, and this case should serve as an example to individuals and businesses that these schemes will not be tolerated.”
“Not only did this fraud scheme steal millions of dollars from our hardworking taxpayers, it took that money away from legitimate programs to help children who needed it,” South Carolina Attorney General Alan Wilson said. “This case is another example of the close and productive working relationship our office has with the U.S. Attorney’s Office and the FBI and I want to commend them for their diligence in this case.”
Evidence obtained in the investigation revealed that, in 2014, Wrights Care Services was approved by South Carolina Medicaid to provide behavioral health services. Wrights Care maintained associated franchise locations throughout South Carolina, including Columbia, Spartanburg, Pickens, Cheraw, Society Hill, Bennettsville, Hartsville, and Conway. From its inception, Wrights Care Services failed to provide qualified behavioral health services to the children in its care. Nevertheless, in order to receive payment from Medicaid, members of the conspiracy submitted inflated bills and false medical records. In the case of one franchise, members of the conspiracy began billing Medicaid for services before the franchise opened its doors.
In 2015, South Carolina Medicaid sought to audit Wrights Care Services, and members of the conspiracy met in Columbia at a “note party” to forge signatures and falsify records to support the audit. During the course of the scheme, Wrights Care and its affiliated franchises submitted bills to Medicaid in the amount of $6,657,810.43.
The following defendants have pleaded guilty so far:
- Daniel Wright, 39, of Greensboro, North Carolina
- Glenn Pair, 35, of Baltimore, Maryland
- John David Zachariah Wallace, 40, of Sugar Land, Texas
- Kathleen Dubose, 54, of Greensboro, North Carolina
- Sherel Lawson, 47, of Summerfield, North Carolina
- Latasha Bethea, 37, of Fayetteville, North Carolina
- Tonya Strickland Hall, 47, of Greensboro, North Carolina
Each defendant faces a maximum penalty of five years in federal prison for conspiracy to defraud the United States. Each defendant also faces a fine of up to $250,000 and 3 years of supervision to follow the term of imprisonment. United States District Judge Mary G. Lewis accepted the guilty pleas and will sentence the defendants after receiving and reviewing presentencing reports prepared by the United States Probation Office.
This case was investigated by Special Agents Neil Power and Mark McMahon of the FBI, and Assistant Attorney General Brent Yandle and Assistant Chief Investigator Jamie Seales of the South Carolina Attorney General’s Office Medicaid Fraud Control Unit. Assistant United States Attorney Brook Andrews is prosecuting the case.
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Myrtle Beach Man Sentenced to 8 Years in Federal Prison on Fentanyl ChargeRead the Press Release
Florence, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Shamar Jabarns McCollum, 24, of Myrtle Beach, was sentenced to 8 years in federal prison after pleading guilty to possession of fentanyl with the intent to distribute.
Evidence presented to the court showed that on July 1, 2020, officers from the Myrtle Beach Police Department Street Crimes Unit and Patrol located McCollum in Myrtle Beach and placed McCollum under arrest for an outstanding warrant. During a search of McCollum incident to arrest, officers located a digital scale and two wax slips containing heroin and fentanyl.
Chief United States District Judge R. Bryan Harwell sentenced McCollum to 96 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 Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Myrtle Beach Police Department Street Crimes Unit and Patrol.
Assistant United States Attorney Lauren Hummel prosecuted the case.
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Florence Man Sentenced to More than Four Years in Federal Prison on Gun ChargeRead the Press Release
Florence, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Brandon Paul Wallace, 33, of Florence, was sentenced to more than four years in federal prison after pleading guilty to possessing a firearm and ammunition as a convicted felon.
Evidence presented to the court showed that on June 19, 2018, agents from the South Carolina Law Enforcement Division as well as an officer from the Florence Police Department arrested Wallace on an outstanding arrest warrant at a residence in Marion. Following Wallace’s arrest, law enforcement searched the area where Wallace was arrested and located two loaded firearms. Federal law prohibits Wallace from possessing firearms and ammunition because of his prior felony convictions for voluntary manslaughter, possession of a stolen vehicle, and assault and battery of a high and aggravated nature.
United States District Judge Donald C. Coggins, Jr. sentenced Wallace to 52 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 Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Florence Police Department, and South Carolina Law Enforcement Division (SLED).
The case was prosecuted as part of the 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 Lauren Hummel prosecuted the case.
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Three Sentenced in Overdose Causing Death CaseRead the Press Release
Charleston, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Darryl Blunt, 59, Ayla Courvoisie, 31, and Teresa Cooper, 60, all of Charleston, were sentenced for their respective roles in a case involving fentanyl that caused the death of a victim. Specifically, Blunt was sentenced to 20 years in prison for distributing fentanyl that caused a death, Courvoisie was sentenced to 12 years in prison for distributing fentanyl that caused a death and wire fraud, and Cooper was sentenced to probation for being a felon in possession of a firearm.
Evidence presented to the Court showed that Blunt distributed fentanyl to Courvoisie, and Courvoisie, in turn, distributed the drugs to the victim, who died from the drugs. Courvoisie then contacted Blunt, who provided Courvoisie with other individuals who eventually helped Courvoisie move the victim’s body. Courvoisie stole the victim’s bank cards and used them around Charleston. After the overdose, and while Blunt was in jail, Blunt directed Cooper to obtain his gun for him, which they both were prohibited from possessing. Additional evidence presented at the sentencing showed that Blunt had a significant criminal history.
United States District Judge David C. Norton sentenced Blunt to 240 months in federal prison, and Courvoisie to 144 months, both to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system. Cooper was sentenced to 24-months probation.
The case was investigated by the Drug Enforcement Administration (DEA) Task Force, North Charleston Police Department, and Charleston County Sheriff’s Office.
Assistant United States Attorney Jamie Schoen prosecuted the case.
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North Carolina Family Sentenced in Multimillion Dollar South Carolina Medicaid SchemeRead the Press Release
Columbia, South Carolina – Acting United States Attorney M. Rhett DeHart announced today that Tony Lee Covington, 50, his wife Priscilla Covington, 51, and his sisters Vanessa McPhaul, 56, and Mary Moses Covington, 51, all of Raeford, North Carolina, were sentenced for conspiracy to commit wire fraud in a scheme to defraud South Carolina Medicaid of over $3.6 million.
According to evidence presented during the defendants’ guilty plea and sentencing hearings, the family members founded two companies, Preferred Care Incorporated and Saving Grace Outreach. The two companies claimed to provide rehabilitative behavioral health services to disabled, low-income individuals in South Carolina through the Medicaid program. Instead, between 2014 and 2016, the companies billed South Carolina Medicaid millions of dollars for “crisis intervention,” a service offered to individuals experiencing extreme emotional distress like suicidal thoughts or mental breakdowns.
During the hearings, the government indicated that despite the companies having fewer than 20 clients, they billed more in total for crisis intervention services than the entire South Carolina Department of Mental Health. Clients contacted by investigators indicated that while they had received some services from the companies, they never received any crisis intervention. Evidence in the case indicated that the services provided by the companies should have been billed at approximately $9.00 an hour, but by billing the services as crisis intervention, the companies were instead paid $67.88 per hour.
Although Medicaid instituted an audit of Preferred Care once the irregular billing was discovered, the family immediately started Saving Grace Outreach to continue the fraudulent billing practices.
“Stealing from agencies that serve those in distress is shameful, and illegal,” said Acting U.S. Attorney DeHart. “This office worked with our partners in the South Carolina Attorney General’s Office to not only prosecute these defendants, but to put a stop to their illegal practices.”
“This case shows the great working relationship between our office and the U.S. Attorney’s Office and illustrates how we use that cooperation to hold criminals accountable,” South Carolina Attorney General Alan Wilson said. “This Medicaid Fraud Scheme enabled providers to steal millions of dollars from taxpayers, which means there’s less money available for people who actually need medical care.”
United States District Judge Mary Lewis sentenced Tony Covington to 51 months in federal prison, Priscilla Covington to 39 months in federal prison, Mary Covington Moses to 33 months in federal prison, and Vanessa Covington McPhaul to 33 months in federal prison. There is no parole in the federal system. All defendants were given a three-year term of court-ordered supervision and ordered to repay $3,647,094.83 in restitution to South Carolina Medicaid.
The case was investigated by the United States Department of Health and Human Services (HHS) and South Carolina Attorney General’s Office.
Assistant United States Attorney T. DeWayne Pearson prosecuted the case.
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Columbia Man Sentenced to 14 Years in Federal Prison on Narcotics and Firearms ChargesRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Darryl Ryan Bostick, 39, of Columbia, was sentenced to 14 years in federal prison after pleading guilty to aiding and abetting the possession with intent to distribute and distribution of cocaine, and possessing a firearm in furtherance of drug trafficking.
Evidence presented to the Court showed that, on December 1, 2016, Columbia Police Department received a tip indicating Vernon Wendell Griffin was selling drugs at a location in Columbia. Officers with Columbia Police Department reported to the location, and observed Griffin drive a Ford Expedition to a nearby business. Shortly thereafter, Bostick arrived as the passenger in a Chevrolet Cavalier. Bostick exited the Cavalier and entered the passenger seat of Griffin’s Expedition. As law enforcement approached, Bostick fled on foot. Both vehicles were subsequently searched. Law enforcement found approximately 26 grams of cocaine in the Expedition. On the passenger floorboard of the Cavalier where Bostick had been sitting when he arrived at the scene, law enforcement found a hat containing approximately 104 grams of cocaine, 11 grams of cocaine base, and methadone pills. A 9 mm handgun was located near the hat.
Senior United States District Judge Joseph F. Anderson, Jr. sentenced Bostick to 168 months in federal prison, to be followed by a six-year term of court-ordered supervision. There is no parole in the federal system. Griffin, 54, also of Columbia, previously pled guilty to conspiracy to distribute cocaine, and was sentenced to six months in federal prison with three years of court-ordered supervision to follow imprisonment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Columbia Police Department, and South Carolina Law Enforcement Division (SLED).
Assistant United States Attorney Katherine Flynn prosecuted the case.
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Nine Defendants Charged with Drug Trafficking and Firearms Crimes after Joint Federal, State, and Local OperationRead the Press Release
Florence, South Carolina --- Acting United States Attorney M. Rhett Dehart announced today that a joint team of federal, state, and local law enforcement officers arrested eight individuals who have all been charged, along with one other defendant, in federal court for their involvement in drug trafficking and firearms offenses in Florence.
The recent charges follow early-morning arrests on October 19 that were the result of a joint operation which represents a line of federal, state, and local authorities working in tandem to bring consequences to those who harm their communities. The multi-year operation has specifically targeted members and associates of several sets of a violent street gang in the region.
“This office has been clear: those who sow violence in South Carolina communities will be prosecuted,” said Acting U.S. Attorney DeHart. “I want to especially thank the federal, state, and local agents who stepped into harm’s way to execute this operation. These types of cases target entire criminal organizations and help us keep communities safer.”
“The alleged actions detailed in these indictments are troubling and remind us how the combination of illegal narcotics and gun violence can cast a dark shadow over our communities,” said Susan Ferensic, Special Agent in Charge of the Columbia Federal Bureau of Investigation (FBI) Field Office. “The FBI along with our local, state, and federal partners will continue to use aggressive approaches to identify, disrupt, and dismantle our most violent offenders and their criminal enterprises.”
“Law enforcement is never better than when we work in cooperation with other partners,” said Florence County Sheriff T.J. Joye. “This operation is a prime example of how we can improve our communities when we work together.”
“This is just the beginning of our endeavor to reduce the illegal drug trade and violent crime by actively identifying criminal gangs and their membership for prosecution,” said City of Florence Chief of Police Allen Heidler. ”We pledge to continue in this diligent collaboration with our law enforcement colleagues to bring more illegal drug trade and violent crime offenders to justice, making our communities safe.”
The eight arrested defendants have been charged in several indictments with firearms offenses and trafficking various drugs, including crack, cocaine, methamphetamine, fentanyl, and marijuana.
Demetrius Cornelius Thomas, 34, of Florence, is charged with conspiracy to distribute and distribution of crack, and possession with intent to distribute crack, cocaine and heroin;
Delonta Nathaniel Brown, 35, of Florence, is charged with conspiracy to distribute crack, possession with intent to distribute crack, cocaine and heroin, possession of a firearm in furtherance of a drug trafficking crime and felon in possession of a firearm;
Shakeam Marquise Backus, a/k/a “B.G.”, 26, of Florence, is charged with conspiracy to distribute crack, possession with intent to distribute crack, cocaine and heroin, and felon in possession of a firearm;
Marquaris Quachan Da-Whan White, a/k/a “KAP Savage,” 25, of Florence, is charged with possession with intent to distribute marijuana, possession of a firearm in furtherance of a drug trafficking crime and felon in possession of a firearm;
Ty Quez Chamon Cooper, 26, of Florence, is charged with possession with intent to distribute marijuana, two counts of possession of a firearm in furtherance of a drug trafficking crime and felon in possession of a firearm;
Jyqwon Antonio Woods, a/k/a “Cheese,” 33, of Florence, is charged with conspiracy to distribute crack and cocaine, possession with intent to distribute crack and cocaine, possession of a firearm in furtherance of a drug trafficking crime and felon in possession of a firearm;
Tyraze Tyrone-Lamonte Eaddy, 22, of Florence, is charged with robbery affecting interstate commerce, possession with intent to distribute methamphetamine, fentanyl, and marijuana, and possession of a firearm in furtherance of a drug trafficking crime; and
Joey Qurrieven York, JR., 22, of Florence, is charged with possession with intent to distribute marijuana, possession of a firearm in furtherance of a drug trafficking crime and felon in possession of a firearm.
Defendants Thomas, Brown, White, Cooper, Woods, and Eaddy face a maximum penalty of life in federal prison, and Defendant Backus faces up to 40 years in federal prison.
In addition to the defendants arrested, an additional defendant has been charged in an indictment with drug trafficking offenses.
Levester Tyyon Woods, a/k/a “Main,” 36, of Florence, is charged with conspiracy to distribute crack and cocaine, and possession with intent to distribute crack, cocaine, and marijuana.
Defendant Woods faces up to 20 years in federal prison.
According to the complaints filed against these defendants, the case involves members of a street gang who distributed drugs in the Florence area. The complaints filed against these defendants also allege that the gang members often used firearms and violence to conduct their illegal activity and further their criminal enterprise.
During the course of the investigation into the drug trafficking and firearms offenses of these defendants, agents have seized crack, cocaine, methamphetamine, heroin, fentanyl, marijuana, and firearms.
The case was investigated by the FBI, Drug Enforcement Administration (DEA), Florence County Sheriff’s Office, Florence Police Department, South Carolina Law Enforcement Division (SLED), and the Twelfth Circuit Solicitor’s Office.
Assistant United States Attorney A. Bradley Parham is prosecuting the case.
The United States Attorney stated that all charges in this indictment are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Greer Man Pleads Guilty to Wire Fraud and Money Laundering Involving Just Under $2 Million in Coronavirus FundsRead the Press Release
Greenville, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Jeffrey Gossett, 47, of Greer, has pleaded guilty to felony counts of wire fraud and money laundering stemming from the theft of nearly $2 million in funds related to the Coronavirus, specifically Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL).
“Taking money meant for those in need is reprehensible, especially during a pandemic,” said Acting U.S. Attorney DeHart. “With the help of our federal and local partners, this office will continue to investigate and prosecute those who seek to turn the misfortune of others into illegal gains for themselves.”
“While many small businesses were struggling to make ends meet at the height of the COVID-19 pandemic, Gossett submitted fraudulent claims for his personal benefit," said Susan Ferensic, Special Agent in Charge of the Federal Bureau of Investigation (FBI) Columbia field office. “The FBI and its federal partners will continue to pursue those who take advantage of programs meant to help small businesses during difficult times.”
“Making false statements to fraudulently gain access to SBA program funds is unacceptable,” said Amaleka McCall-Brathwaite, Small Business Administration (SBA) Office of Inspector General’s (OIG’s) Eastern Region Special Agent in Charge. “SBA OIG will relentlessly pursue evidence of fraud against SBA’s programs aimed at assisting the nation’s small businesses struggling with the pandemic challenges. I want to thank the U.S. Attorney’s Office for its leadership and dedication to pursuing justice.”
Evidence presented to the Court showed that, from March 2020 and continuing until August 2020, Gossett devised a scheme to defraud and obtain money and property by false and fraudulent pretenses. Specifically, Gossett submitted false PPP loan and EIDL applications issued as a result of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. During the course of the scheme, Gossett fraudulently obtained $1,870,549.00 of PPP and EIDL assistance.
For the most serious charge, Gossett faces a maximum penalty of 20 years in federal prison, a fine of $250,000, 3 years of supervision to follow the term of imprisonment, and restitution. United States District Judge Timothy M. Cain accepted the guilty plea and will sentence Gossett after receiving and reviewing a sentencing report prepared by the United States Probation Office.
The case was investigated by the FBI, SBA OIG, and the Internal Revenue Service. Assistant United States Attorney Winston Marosek is prosecuting the case.
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.
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County Councilman Sentenced to a year and a half in Federal Prison for False Statements While Trying to Buy a FirearmRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart, announced today that Kerry Trent Kinard, 50, of Bamberg, was sentenced to a year and a half in federal prison after pleading guilty to making false statements while trying to illegally acquire a firearm.
According to evidence presented in court, while on state bond on seven felony indictments, and while subject to a protective order imposed by a South Carolina Family Court judge, Kinard went into a federally licensed firearms dealer in Columbia and attempted to purchase a Taurus Model G3 9 mm pistol and ammunition.
In the process, Kinard made two false statements to the firearms dealer. First, in filling out a standard form, he was asked, “Are you under indictment … in any court for a felony, or any other crime for which the judge could imprison you for more than one year?” Kinard falsely answered, “No.” Second, he was asked, “Are you subject to a court order … restraining you from harassing, stalking, or threatening your child or an intimate partner or child of such partner?” Again, Kinard falsely answered, “No.” The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) recovered GPS ankle monitor coordinates and surveillance of the attempted purchase.
Kinard knew his statements were false, having participated in hearings on both the state felony charges and the protective order, as well as having been suspended from service on the Bamberg County Council by virtue of the felony indictments.
Kinard had also failed to comply with conditions of bond set by the state court judge, and assurances were made in state court that Kinard would surrender firearms if he were released on bond.
The South Carolina Family Court also had made a finding that Kinard “represents a credible threat to the physical safety” of the petitioner in that case, and that he “used, attempted to use, or threatened to use physical force … that is reasonably expected to cause bodily injury.” That court also wrote in its order that Kinard was prohibited under federal law from possessing a firearm under federal law.
On December 4, 2020, Kinard was charged via criminal complaint, and has remained in federal custody since that time. After his arrest, Kinard obstructed the federal investigation by providing ATF leads he knew were false. After a grand jury indicted Kinard on two counts related to false statements, Kinard pled guilty to one count of making a false written statement to a licensed firearms dealer.
United States District Judge Mary Geiger Lewis sentenced Kinard to 18 months in federal prison, to be followed by a three-year term of court-ordered supervision. This was the high-end of the recommended sentence and supervised release term. There is no parole in the federal system.
The case was investigated by the ATF and the South Carolina State Law Enforcement Division (SLED). Assistant United States Attorney Elliott B. Daniels prosecuted the case.
The case was prosecuted as part of the 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.
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Twelve Plead Guilty to Tax and Immigration Charges after Undercover Operation Marking Largest Criminal Tax Case in Pee Dee HistoryRead the Press Release
Florence, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that 12 individuals across seven construction-related companies have pleaded guilty to charges related to employment tax fraud and hiring unauthorized aliens in the largest criminal Internal Revenue Service (IRS) operation in the history of the Pee Dee region. The pleas are the first to come from an expansive multi-year undercover investigation in the Myrtle Beach area and throughout the South Carolina coast led by the IRS and Homeland Security Investigations (HSI).
The operation targeted those in the construction industry who used unlicensed check cashers to facilitate under-the-table cash payments to employees, many of whom were unauthorized aliens. The check cashers would also provide certificates of insurance falsely stating that the employees were covered under workers’ compensation insurance. These off-the-book payments defrauded the United States out of applicable employment taxes on the employees. Each of the twelve defendants pleaded guilty to an information charging them with one felony count of conspiracy to defraud the United States and one misdemeanor count of unlawful employment of aliens. At least $15 million in checks were cashed by these defendants, resulting in millions of dollars of total losses to the Government. Based on the investigation, at least tens of millions of dollars of tax losses have occurred throughout the South Carolina coast because of similar schemes.
“Those who steal from the Government, and by extension the American taxpayers, will not find refuge in South Carolina,” said Acting U.S. Attorney DeHart. “By evading millions of dollars in taxes and falsely claiming their workers had insurance, these defendants made it harder for honest business owners to compete in the construction industry along South Carolina’s coast and they left their workers exposed to injury without insurance. I want to thank the IRS and HSI for their tireless efforts, as well as our local partners who assisted during this operation. We will continue to prosecute businesses and individuals who try to get ahead by breaking the law.”
“IRS Criminal Investigation realizes the detrimental consequences of employment tax evasion. These defendants mistakenly believed they could disregard their tax obligations and gain a competitive advantage while doing so,” said Mona Passmore, Acting Special Agent in Charge, IRS Criminal Investigation. “They underestimated our vigorous pursuit of justice and dedication to closing the tax gap. We will continue to hold criminals accountable for their role in these schemes.”
“The biggest misconception about labor exploitation is that it's a victimless crime and that couldn't be further from the truth. Workers, competing businesses, people who have their identities stolen and even the local economy are all victims of this crime,” said Special Agent in Charge Ronnie Martinez, who oversees HSI operations in North Carolina and South Carolina. “This case is shedding light on a crime that has happened in the shadows for too long and HSI and its partners will continue to hold accountable those involved in labor exploitation.”
Evidence presented to the court showed that beginning around late 2018, IRS and HSI began jointly investigating the practice of illegal check cashing within the construction industry in the Myrtle Beach area and in other regions along the South Carolina coast. Specifically, certain construction companies would use check cashers so that they could hire unauthorized aliens and avoid paying employment taxes on their workers. To facilitate the scheme, a member of the construction company would meet with an unlicensed check casher in places like parking lots for retail stores or coffee shops. The construction company would give the check casher a business check in a certain amount made out to a company the check casher had created, and the check casher would give the construction company representative a bag of cash that would be used to pay the employees. In exchange for their services, the check casher held back a fee of approximately three percent.
To make it appear like the employees had valid insurance on job sites, the check casher would also provide a certificate of workers’ compensation insurance that was not actually valid for any of the construction company’s employees. The parties agreed that the check casher would, on paper, claim to be a subcontractor who provided the employees and provided insurance. However, the parties knew that the check casher provided no other services or employees to the construction company. The check casher only provided a way to hide the true nature of the scheme, to allow the construction company to hire unauthorized aliens, and to pay workers with untaxed cash.
In approximately 2019, various IRS undercover agents embedded themselves in the Myrtle Beach area and recorded multiple interactions with the various defendants’ companies.
The following defendants from the following companies have pled guilty so far in the operation:
Daniel Lavoie Construction Services
- Daniel A. Lavoie, 49, of Conway (4:21-cr-00585)
- Enrique R. Reyes, 48, of Conway (4:21-cr-00585)
Duran Masonry
- Walter A. Duran, 45, of Myrtle Beach (4:21-cr-00584)
- Lisa Caulley Sellers, 57, of Myrtle Beach (4:21-cr-00584)
Extreme Siding
- Ming Xue Nan, 52, of Myrtle Beach (4:21-cr-00595)
- Katherine L. Welker, 39, of Myrtle Beach (4:21-cr-00595)
Master Homes Calabash
- Marylany Hardman Levino, 36, of Myrtle Beach (4:21-cr-00581)
- Josafa P. Neto, 43, of Myrtle Beach (4:21-cr-00581)
Metro Concrete Finishers
- Saul Prieto, 56, of Myrtle Beach (4:21-cr-00594)
- Martha E. Zarate, a/k/a Martha E. Prieto, 54, of Myrtle Beach (4:21-cr-00594)
Master Homes Design Center
- Marcos Caetano De Almeida, 45, of Myrtle Beach (4:21-cr-00582)
Paint By Numbers
- Johanna A. Carpio, 38, of Myrtle Beach (4:21-cr-00583)
Each defendant faces a maximum penalty of five years in federal prison for conspiracy to defraud the United States, and six months in federal prison for unlawful employment of aliens. Each defendant also faces a fine of up to $250,000 and $3,000 for each unauthorized alien, and 3 years of supervision to follow the term of imprisonment. Each defendant has agreed to make restitution to the IRS, for a total restitution amount of just under $3 million. Chief United States District Judge R. Bryan Harwell accepted each of the guilty pleas and will sentence the defendants after receiving and reviewing a sentencing report prepared by the United States Probation Office.
This case was investigated by IRS and HSI, with assistance from the Myrtle Beach Police Department. Assistant United States Attorneys Derek A. Shoemake and Carrie Fisher are prosecuting the case.
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U.S. Attorney’s Office to Join Federal Law Enforcement Officers for a Press Conference Tomorrow in Myrtle Beach at 10 a.m.Read the Press Release
Myrtle Beach, South Carolina --- Acting United States Attorney Rhett DeHart announced today that a press conference will be held tomorrow, October 26, 2021, at 10 a.m., at the Myrtle Beach Police Department Annex at 3340 Mustang Street in Myrtle Beach, South Carolina 29577.
Represented at the press conference will be the U.S. Attorney’s Office for the District of South Carolina and representatives of the following law enforcement agencies: Internal Revenue Service (IRS) and Homeland Security Investigations (HSI).
WHEN: Tuesday, October 26, 2021, at 10 a.m.
WHERE: Myrtle Beach Police Department Annex
3340 Mustang Street
Myrtle Beach, South Carolina 29577
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 the remarks should arrive at the Myrtle Beach Police Department Annex fifteen minutes in advance.
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South Carolina Man Indicted for Assault on Law Enforcement During Jan. 6 Capitol BreachRead the Press Release
WASHINGTON — A South Carolina man was indicted today for crimes related to the breach of the U.S. Capitol on Jan. 6, which disrupted a joint session of the U.S. Congress that was in the process of ascertaining and counting the electoral votes related to the presidential election. A second man, from Texas, was indicted in the case on related charges.
George Amos Tenney III, 35, of Anderson, S.C., was indicted on three felony charges, including assaulting, resisting, or impeding certain officers, civil disorder, and obstructing an official proceeding. as well six other misdemeanor charges. Darrell Youngers, 32, of Cleveland, Texas, is charged with four misdemeanor offenses. Both men were arrested on June 29, 2021, following the filing of a criminal complaint. They will be arraigned on a future date in the District of Columbia.
According to court documents, before Jan. 6, Tenney wrote on Facebook, “It’s starting to look like we may siege the capital building [sic] and [C]ongress if the electoral votes don’t go right. We are forming plans for every scenario.” Tenney and Youngers were captured on video as they moved through the U.S. Capitol together on Jan 6, entering by approximately 2:19 p.m. through the Senate Wing Door. Tenney and Youngers eventually made their way to the East Rotunda Doors. While there, Tenney sought to force open the doors from inside, despite police efforts to keep them closed, and helped rioters amassed outside get into the building. He also grabbed an employee of the House Sergeant at Arms, locked arms with a U.S. Capitol Police officer, and pushed another Capitol Police officer. Tenney and Youngers eventually retreated into the Rotunda.
This case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section. Valuable assistance was provided by the U.S. Attorney’s Office for the District of South Carolina and the U.S. Attorney’s Office for the Southern District of Texas.
The case is being investigated by the FBI’s Greenville, S.C. Resident Agency and Houston Field Office, as well as the Metropolitan Police Department. Significant assistance was provided by the U.S. Capitol Police.
In the nine months since Jan. 6, more than 650 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including over 190 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.
The charges contained in any criminal complaint or indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Columbia Man Sentenced to Seven Years in Federal PrisonRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced that James Eric Hampton, Jr., 37, of Columbia, was sentenced to seven years in federal prison today after pleading guilty to being a felon in possession of a firearm and ammunition and possession with intent to distribute marijuana.
Evidence presented in court showed that on the night of June 10, 2019, an officer with the University of South Carolina Police Department observed a vehicle at the intersection of Gervais Street and Assembly Street and noticed that it had a suspended license plate. Upon approaching the vehicle, the officer smelled marijuana coming from the vehicle. A search of the vehicle revealed over an ounce of marijuana, packed in baggies, along with a digital scale and cash. Hampton admitted to having sold marijuana earlier. The officer also located a stolen, loaded Ruger 9mm handgun, which Hampton admitted to purchasing off the street. Hampton had been released from the South Carolina Department of Corrections a year earlier after serving time for possession of a firearm.
Hampton was placed under arrested on state charges and later indicted federally. Hampton, who was later released on federal bond with GPS monitoring, absconded supervision, cut off the ankle monitor, and fled to North Carolina, where the United States Marshal’s Service apprehended him and returned him to South Carolina where he remained in custody. As a result, Hampton received an enhancement for obstruction of justice, his federal bond was revoked, and a portion of the bond was forfeited.
Hampton is a felon and prohibited from possessing firearms and ammunition under federal law based upon prior state convictions. Hampton has prior state convictions from Richland, Fairfield, Newberry, and Lexington Counties for use of a vehicle without permission, driving under suspension, unlawful possession of a firearm, burglary 3rd degree, assault and battery of a high and aggravated nature, giving false information, simple possession of marijuana, habitual traffic offender, assault and battery 2nd degree, and possession of a pistol by an unlawful person convicted of a crime of violence.
United States District Judge Mary Geiger Lewis of Columbia sentenced Hampton to 84 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 Bureau of Alcohol, Tobacco, Firearms, and Explosives and the University of South Carolina Police Department. The case was prosecuted as part of the 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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Wando Man Sentenced to Fifteen Years in Federal Prison for Folly Road Bank RobberyRead the Press Release
Charleston, South Carolina --- Acting United States Attorney M. Rhett DeHart, announced today that Quinton Allen Manigault, 26, of Wando, was sentenced to 15 years in federal prison after pleading guilty to armed bank robbery.
Evidence presented to the Court showed that Manigault robbed the Pinnacle Bank at the corner of Folly Road and Cross Creek Drive at gunpoint on March 27, 2018. Following the robbery, Special Agents with the Federal Bureau of Investigation (FBI) and detectives with the Charleston Police Department used surveillance footage from surrounding establishments to identify the car Manigault used, and a money band from the bank was discovered in the vehicle.
United States District Judge Bruce Howe Hendricks sentenced Manigault to 180 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 Charleston Police Department. The 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 Attorneys Chris Schoen and Allessandra Stewart prosecuted the case.
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United States reaches a $1.25 Million Settlement with South Carolina Family Practice Clinics for Billing Unnecessary Services to Federal Health ProgramsRead the Press Release
Columbia, South Carolina---- Acting United States Attorney M. Rhett DeHart announced today that Colonial Family Practice, LLC, a physician-owned primary and urgent care practice with multiple clinics in South Carolina, has agreed to a $1.25 million settlement to resolve allegations that it violated the False Claims Act by billing Medicare, Medicaid, and TRICARE for medically unnecessary services.
Specifically, the United States alleged that Colonial Family Practice filed claims for medically unnecessary nuclear stress tests ordered by Dr. Clay Lowder and Dr. David Whaley between February 22, 2012, and November 26, 2019. Further, the United States alleged the practice systematically billed for unnecessary Cystatin-C laboratory tests—a test to detect kidney dysfunction that is only payable in a narrow set of patients. Colonial Family Practice allegedly added this test to a panel run on most of its patients between August 13, 2013, and November 29, 2019.
The allegations settled arose from two whistleblower lawsuits—one by a Physician Assistant formerly employed by Colonial and the other by a former clinical manager at the practice.
In United States ex rel. Debi Coker v. Colonial Family Practice LLC, et al., Civ. No. 3:18-cv-00800-JMC, the former clinical manager alleged that between February 2012 and November 2019 physicians at the practice falsified symptoms in medical records to support unnecessary EKGs, laboratory orders, and radiology services.
In United States ex rel. James Fields v. Colonial Family Practice, et al., Civ. No. 3:19-cv-02703-JMC, the Physician Assistant alleged that, between August 2013 and November 2019, Colonial created a protocol to add a Cystatin-C laboratory test to its Basic Metabolic Panel, which led to systematic billing for medically unnecessary Cystatin-C tests.
“The United States Attorney’s Office will continue its effort to ensure healthcare providers doing business with the federal government do so with competent care within the full letter of the law,” said Acting U.S. Attorney DeHart. “By doing so, we not only will ensure the rule of law is followed but also ensure tax dollars are protected.”
"False and inappropriate healthcare billing erodes public confidence in the healthcare system, subjects patients to unnecessary tests and procedures, and increases the cost of healthcare for active duty service members, retirees, and their families,” said Special Agent in Charge Christopher Dillard, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office. “DCIS and its law enforcement partners will continue targeting fraud waste and abuse of the TRICARE program and hold wrongdoers accountable.”
The matter was investigated by the Department of Defense’s Defense Health Agency, the South Carolina Attorney General’s Medicaid Fraud Enforcement Unit, and Assistant United States Attorneys Beth Warren and Nancy Cote.
The litigation and settlement 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 claims resolved by this settlement are allegations only. Colonial Family Practice, LLC does not admit wrongdoing or liability.
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Over 3,000 South Carolina Students to Participate in State’s 20th Annual National Day of Concern & Student Pledge Against Gun ViolenceRead the Press Release
COLUMBIA, South Carolina ---- Acting United States Attorney M. Rhett DeHart stated today that on Wednesday, October 20, 2021, the United States Attorney’s Office (USAO), along with their local, state, and federal law enforcement partners, will support schools across the state as they participate in South Carolina’s 20th Annual Student Pledge Against Gun Violence. With a focus on keeping our schools and communities safe, students in middle school and high school are signing a voluntary pledge promising that they will never take a gun to school, will never resolve a dispute with a gun, and will use their influence to prevent friends from using guns to resolve disputes. Elementary school children are making a similar commitment—pledging that if they see a gun they will not touch it, they will tell a teacher or a trusted adult, and they will assume that any gun they see might be loaded.
The Student Pledge Against Gun Violence is a national program that recognizes the role young people, through their own decisions, can play in reducing gun violence. The program provides a means for beginning the conversation with young people about gun violence and encourages important conversations about gun safety and respectful ways to resolve disputes. Students from around the country will join together in pledging to do their part. For additional information concerning the pledge, visit the national Student Pledge website at www.pledge.org.
As it has done since 2002, the USAO reached out to all South Carolina law enforcement agencies and schools to make the pledges available to interested schools. The pledge effort is part of Project Safe Neighborhoods (PSN), a national program that has been historically successful in bringing together law enforcement agencies and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.
The following South Carolina schools and law enforcement agencies are participating in this year’s pledge. For information on events scheduled for a particular school, please contact the respective school or local law enforcement agency.
Participating Law Enforcement Agencies
Bennettsville Police Department
Cherokee County Sheriff’s Office
Chesterfield County Sheriff’s Office
City of Charleston Police Department
Easley Police Department
Lexington County Sheriff’s Office
Participating Schools
Brookdale Elementary School
Cheraw Intermediate School
Elloree Elementary School
Fairfield Magnet School for Math and Science
Julian Mitchell Elementary School
Luther Vaughan Elementary School
Marlboro County High School (9th Grade)
McKissick Academy of Science and Technology
Northwest Elementary School
Rivelon Elementary School
Sandhills Middle School
Swansea Freshman Academy
Wallace-Gregg Elementary School
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Gang Member Sentenced to Federal Prison for Firearm ChargeRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart, announced today that Kevin Shacqile Roney, a/k/a “Kevo,” a/k/a “Valentine Roney,” 26, of Columbia, was sentenced to 30 months in federal prison after pleading guilty to being a felon in possession of a firearm and ammunition.
Evidence presented to the court showed that at approximately 1:15am on August 18, 2019, officers in the Five Points area of Columbia observed an individual, later identified as Roney, stash something underneath bushes adjacent to a parking lot. Officers discovered that the item was a loaded 9mm handgun. Officers set up surveillance and arrested Roney on state charges when he returned to retrieve the firearm an hour later. Roney, a gang member, admitted to placing the firearm underneath the bushes. Further investigation revealed a social media video from May 2020 where Roney, who had been released on state bonds, brandished another firearm in the video.
Roney is prohibited from possessing firearms and ammunition based upon his prior felony convictions. Roney has prior state convictions for unlawful carrying of a weapon, burglary 3rd degree, and assault and battery 2nd degree.
United States District Judge Mary Geiger Lewis sentenced Roney to 30 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 Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Columbia Police Department. Assistant United States Attorney Stacey D. Haynes prosecuted the case as part of the 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.
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Two Men Sentenced to 8 Years in Federal Prison for Role in Trafficking FentanylRead the Press Release
Florence, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Fernando Contreras-Herrera, 25, and Cesar Inda-Silva, 25, both from Mexico, were each sentenced to eight years in federal prison after pleading guilty to possession with intent to distribute fentanyl.
Evidence presented to the Court showed that, on January 22, 2021, officers with the Myrtle Beach Police Department intercepted a shipped package with indicators of narcotics. A subsequent search revealed that the shipping box contained an inner box. Inside that box was a locked safe, and inside the safe were three wrapped “bricks” consistent with kilogram quantities of narcotics.
After replacing several of the bricks with “sham” narcotics, law enforcement repackaged the parcel and conducted a controlled delivery of the parcel to its intended address in Myrtle Beach. Contreras-Herrera retrieved the package from the porch of the house and Inda-Silva arrived immediately after that.
Law enforcement then executed a search warrant at the address. Contreras-Herrera and Inda-Silva were located in the living room of the home together with the package which had just been delivered. In the minutes since the delivery, the inner and outer boxes of the package and the safe had been opened, the “bricks” had been removed, and one of the “bricks” had been slit open. The suspected controlled substance intercepted was later confirmed to be just over three kilograms of fentanyl, a powerful synthetic opioid. Further investigation revealed that Contreras-Herrera and Inda-Silva were to receive the fentanyl and deliver it to another individual.
United States District Judge Sherri A. Lydon sentenced Contreras-Herrera and Inda-Silva each to 96 months in federal prison, to be followed by a four-year term of court-ordered supervision. There is no parole in the federal system. During the sentencing hearing, Judge Lydon commented on the dangers of fentanyl, and noted that it was fortunate the fentanyl in this case was now off the streets.
The case was investigated by Homeland Security Investigations, Horry County Police Department, Myrtle Beach Police Department, and the South Carolina Law Enforcement Division.
Assistant United States Attorney Katherine Flynn of the Florence office prosecuted the case. This prosecution was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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Former SCANA CEO Sentenced to Two Years for Defrauding Ratepayers in Connection with Failed Nuclear Construction ProjectRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Kevin B. Marsh, 66, former SCANA Corporation (SCANA) Chief Executive Officer and Chairman of the Board of Directors, was sentenced to two years in federal prison after pleading guilty to conspiracy to commit mail and wire fraud.
Evidence presented to the Court showed that Marsh intentionally defrauded ratepayers while overseeing and managing SCANA’s operations – including the construction of two reactors at the V.C. Summer Nuclear Station – so the company could obtain and retain rate increases imposed on its rate-paying customers and qualify for up to $2.2 billion in tax credits. In late 2016, confronted with information that the project was delayed and that the tax credits were at risk, Marsh and others withheld that information from regulators in an effort to keep the project going. Marsh’s false and materially misleading statements, as well as other false and materially misleading statements made by his coconspirators, allowed SCANA to obtain and retain rate increases imposed on SCANA’s rate-paying customers.
“Due to this fraud,” said Acting U.S. Attorney DeHart. “an $11 billion nuclear ghost town, paid for by SCANA investors and customers, now sits vacant in Jenkinsville, S.C. Hopefully, this prosecution will deter other corporate fraud in the future.”
“Kevin Marsh deceived regulators and customers to financially benefit SCANA,” said Susan Ferensic, Special Agent in Charge of the FBI Columbia Field Office. “Unfortunately, Marsh’s and other executive’s actions resulted in South Carolinians bearing the financial brunt of the failed Summer Nuclear Station. This sentence should serve as a reminder to any corporation and their executives that there is a price to pay for those who conspire to commit fraud.”
According to evidence presented to the Court, Marsh has no prior criminal history, and has cooperated with federal and state investigators for more than a year in the ongoing investigation into criminal wrongdoing related to the V.C. Summer nuclear project. Marsh’s sentence reflects credit for his assistance in the ongoing investigation and prosecution of wrongdoing related to the failed nuclear construction project.
Marsh is the first defendant in the case to be sentenced in the investigation. The United States Attorney’s Office has additionally obtained felony guilty pleas from Stephen Byrne, former Executive Vice President of SCANA and former Chief Operating Officer of South Carolina Electric & Gas Company (SCE&G), and Carl Churchman, former Westinghouse Electric Corporation Vice President and the Project Director of the V.C. Summer Nuclear project. The United States Attorney’s Office has also executed cooperation agreements with Dominion Energy and Westinghouse Electric Company, which together provide over $4 billion in ratepayer relief; and it has charged Jeffrey Benjamin, former Westinghouse Electric Company Senior Vice President, in a sixteen-count felony criminal indictment.
United States District Judge Mary Lewis sentenced Marsh to 24 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system. Judge Lewis also imposed a fine of $200,000. Under the terms of his plea agreement, Marsh paid $5 million in federal forfeiture prior to his sentencing.
This sentencing is the result of an exhaustive and multi-year joint investigation by the U.S. Attorney’s Office, the Federal Bureau of Investigation, the U.S. Securities and Exchange Commission, the South Carolina Attorney General’s Office, and the South Carolina Law Enforcement Division. Assistant United States Attorneys Brook Andrews, Winston Holliday, Emily Limehouse, and Special Assistant United States Attorney John O’Halloran are prosecuting the case.
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Former SCANA CEO to Be Sentenced Tomorrow to Conspiracy to Commit Mail and Wire FraudRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced that Kevin B. Marsh, former SCANA Corporation (SCANA) Chief Executive Officer and former Chairman of its Board of Directors, is scheduled to be sentenced tomorrow – Thursday, October 7 – in federal court to conspiracy to commit mail and wire fraud. The hearing is scheduled for 10:00 a.m. at the Matthew J. Perry Federal Courthouse, 901 Richland Street, Columbia, before the Honorable Mary G. Lewis.
Acting U.S. Attorney DeHart will be available for media questions after the hearing.
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Leader of Drug Conspiracy Sentenced to 27 Years in Federal PrisonRead the Press Release
Charleston, South Carolina --- Acting U.S. Attorney M. Rhett DeHart announced today that Lamar Louis Johnson, a/k/a “McJag,” 39, of Mount Pleasant, was sentenced to 27 years in federal prison for his role in suppling cocaine to a drug trafficking organization that operated in the Dorchester Terrace neighborhood of North Charleston.
The evidence presented at the sentencing hearing showed that Johnson distributed dozens of kilograms of cocaine in the Charleston area since 2019. His sentence was enhanced based on his leadership role in the organization, his possession of firearms at the time of his arrest, and his significant criminal history which included more than seventeen prior convictions for various narcotics offenses and violent crimes.
“The North Charleston Police Department is appreciative of the work of the United States Attorney’s Office and our law enforcement partners, which assisted in the lengthy investigation, successful prosecution of the cases developed, and fair sentencing of the defendant,” stated Chief of Police Reggie Burgess of the North Charleston Police Department. “One of the themes of the North Charleston Police Department is to create safer neighborhoods for our citizens and the sentence of this offender assists us in our mission.”
Johnson was one of twelve defendants charged in July 2019 during the first wave of Operation Lowcountry Line, a joint federal, state, and local multi-year investigation quarterbacked by the Federal Bureau of Investigation (FBI) with assistance from the North Charleston Police Department, Charleston County Sheriff’s Office, Charleston Police Department, Berkeley County Sheriff’s Office, Dorchester County Sheriff’s Office, Mount Pleasant Police Department, South Carolina Law Enforcement Division (SLED), Ninth Circuit Solicitor’s Office, Charleston County Aviation Authority, and the United States Postal Inspection Service.
According to the fifty-count superseding indictment, the case targeted members of a street gang who obtained bulk supplies of heroin, cocaine, and other narcotics from interstate sources of supply and then redistributed the drugs to street-level drug dealers in the greater Charleston area. The superseding indictment also asserted that gang members and associates threatened violence and used firearms to defend themselves and their criminal enterprise from rival drug dealers and gang members.
Another twelve defendants were charged in a second-round indictment in mid-2020. To date, twenty-two of the twenty-four defendants, including Johnson, have pled guilty.
U.S. District Judge David Norton sentenced Johnson to 324 months in federal prison, to be followed by a five-year term of court-ordered supervision. There is no parole in the federal system.
Assistant United States Attorney Everett McMillian, lead attorney of the Organized Crime Drug Enforcement Task Force (OCDETF), is prosecuting the case. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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Gang Member Pleads Guilty to Federal Firearm ChargesRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart, announced today that Dashawn Terrell Swygert, age 27, of Columbia, pleaded guilty in federal court to two counts of being a felon in possession of a firearm and ammunition.
Evidence presented to the court showed that in early 2020, agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) conducted an investigation into firearms within the Columbia area. During this investigation, undercover ATF agents were introduced to Swygert, a validated gang member. During three transactions in February 2020, he sold six handguns, many of which were loaded, to undercover ATF agents. Of the seven handguns recovered by ATF, three had previously been reported as having been stolen from vehicles in Richland County and Newberry County. Another of the handguns was preliminarily linked through ballistics analysis as having been involved in two shooting incidents in Richland County and one shooting incident in Lexington County.
Swygert has prior state convictions for strong armed robbery, assault and battery, and criminal conspiracy.
Swygert faces a maximum penalty of 10 years in federal prison, a fine of $250,000, and 3 years of supervision to follow the term of imprisonment. United States District Judge Mary Geiger Lewis accepted the guilty plea and will sentence Swygert after receiving and reviewing a sentencing report prepared by the United States Probation Office.
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 being 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 is prosecuting the case.
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U.S. Attorney’s Office Announces More Than $3.5 Million in Justice Department Grants to Fight Crime in South CarolinaRead the Press Release
Charleston, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today awards of more than $3.5 million in Department of Justice grants to fight crime in the District of South Carolina. The grants were awarded by the Department’s Office of Justice Programs (OJP) and received by the South Carolina Department of Public Safety.
“Crime across our nation and here in South Carolina has risen over the past year,” said Acting U.S. Attorney DeHart. “While our office continues to vigorously prosecute those responsible for crime, we also are grateful for the Department of Justice’s commitment to supporting our state and local partners in their work to make our communities safer places.”
The grant funds were distributed as part of the Edward Byrne Justice Assistance Grant Program to support state and local initiatives including law enforcement programs, prosecution and court programs, prevention and education programs, drug treatment and enforcement programs, and crime victim and witness programs.
More information about the Department of Justice’s Office of Justice Program and its components can be found at www.ojp.gov.
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Orangeburg Man Pleads Guilty to Federal Firearm ChargeRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Abrian Dayquan Sabb, 26, of Orangeburg, pleaded guilty in federal court to aiding and abetting the making of a false statement to a federal firearms dealer during the purchase of a firearm.
Evidence presented to the court showed that on the morning of April 10, 2019, Abrian Sabb, while armed with a loaded AR-15 semi-automatic rifle with a high-capacity magazine, entered the emergency room of The Regional Medical Center in Orangeburg and began shooting in the hallway. A nurse was struck by a bullet to the chest, causing serious bodily injuries. Law enforcement responded and arrested Abrian Sabb at the scene, charging him with various state charges.
The investigation revealed that the day before, April 9, 2019, Abrian Sabb had been involved in a domestic argument at his residence, which resulted in law enforcement responding and confiscating his handgun. Later that day, Abrian Sabb asked his brother, Darius Bernard Sabb, to go with him to a local firearms dealer to purchase him another firearm. Abrian Sabb provided his brother money and requested that he buy an AR-15 semi-automatic rifle with a 100 round magazine and two boxes of ammunition for him. Darius Sabb falsely filled out the ATF 4473 form attesting that he was the actual purchaser of the firearm and bought it. Immediately upon leaving the firearms dealer’s store, Darius Sabb turned the items over to Abrian Sabb as they had planned. Later that day, Abrian Sabb’s girlfriend called Darius Sabb and complained about him purchasing the firearm for Abrian Sabb. Darius Sabb then retrieved the rifle and hid it at another person’s home. However, Abrian Sabb found out where the firearm was located and retrieved it.
Abrian Sabb faces of maximum penalty of 10 years in federal prison, a fine of $250,000, and 3 years of supervision to follow the term of imprisonment. Co-defendant Darius Sabb, 23, of Orangeburg, earlier plead guilty to conspiracy to make a false statement to a federal firearms dealer during the purchase of a firearm and is currently awaiting sentencing. He faces a maximum penalty of 5 years in federal prison, a fine of $250,000, and 3 years of supervision to follow the term of imprisonment.
United States District Judge Mary Geiger Lewis accepted both guilty pleas and will sentence them both after receiving and reviewing sentencing reports prepared by the United States Probation Office.
The firearm charges were the result of an investigation by Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Orangeburg County Sheriff’s Office 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.
Assistant United States Attorney Stacey D. Haynes is prosecuting the case.
State court charges related to the shooting remain pending, and the defendant is innocent unless and until proven guilty.
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Columbia Man Sentenced to 18 months in Federal Prison for Gun ChargeRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced that Willie Franklin Evans, 59, of Columbia, was sentenced to 18 months in federal prison, after earlier pleading guilty to being a felon in possession of a firearm and ammunition.
Evidence presented in court showed that on the evening of August 17, 2020, an officer with the Columbia Police Department recovered a loaded stolen firearm in Evans’ waistband after encountering him in a stopped vehicle on Assembly Street. Evans, who had been released from a three-year term of federal supervision nine days earlier, admitted that he had obtained the firearm a few months or so before.
Evans is a felon and prohibited from possessing firearms and ammunition under federal law based upon prior state and federal convictions. After escaping from juvenile custody in 1979, Evans was convicted in state court of armed robbery, assault and battery with intent to kill for shooting a Richland County Sheriff’s Department deputy five times, carrying a concealed weapon, and grand larceny of a vehicle. He was sentenced to a total of 25 years. After being released in 1993, Evans was convicted in federal court in 1996 of two separate counts of using and carrying a firearm during and in relation to a crime of violence stemming from the armed robbery of two businesses in 1995. He was sentenced to 300 months imprisonment followed by 3 years of supervised release. Evans was released to federal supervision in 2017 and completed it in early August 2020, nine days before the instant offense.
Senior United States District Judge Joseph F. Anderson, Jr. sentenced Evans to the guidelines sentence of 18 months imprisonment on the firearm charge with 3 years of supervision to follow. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Columbia Police Department and prosecuted by Assistant United States Attorney Stacey D. Haynes.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Georgia Genetic Testing Laboratory to Pay up to $200,000 to Resolve Anti-Kickback Statute ClaimsRead the Press Release
Columbia, South Carolina---- Acting United States Attorney M. Rhett DeHart announced today that his office has resolved claims that Alpha Genomix Laboratories, Inc. paid unlawful kickbacks to Aiken Counseling Group, LLC to induce genetic testing referrals, from April 2015 through December 2016.
The United States alleges that during this time period, Alpha Genomix disguised its kickbacks by paying the salary of an individual who primarily worked for Aiken Counseling Group. Further, the United States alleged most of the referrals were not legitimately ordered by a physician and were medically unnecessary. Medicare and South Carolina Medicaid paid for these fraudulent claims, which violated the Anti-Kickback Statute and the False Claims Act. Alpha Genomix Laboratories, Inc. will pay a $35,000 settlement upfront and a percentage of gross annual revenues up to a total of $200,000 to resolve the claims.
The allegations settled arose from a lawsuit filed by a psychiatrist formerly employed by Aiken Counseling Group, under the whistleblower provisions of the False Claims Act. Under the act, private citizens can bring suit on behalf of the government for false claims and share between 15 and 30% of the recovery.
The owner of the Aiken Counseling Group, Lain Bradford, was sentenced in February 2020 to three years of probation and ordered to pay restitution, after pleading guilty to health care fraud and drug offenses in a related case. Aiken Counseling Group filed for Chapter 7 Bankruptcy in January 2018 and is no longer in business.
Since the allegations, Alpha Genomix Laboratories was sold to new ownership.
The Alpha Genomix Laboratories, Inc. matter was investigated by the Office of the Inspector General of the Department of Health and Human Services, the South Carolina Attorney General’s Medicaid Fraud Control Unit, and Assistant United States Attorney Beth Warren.
“Providers participating in Medicare and Medicaid are expected to uphold the integrity of the programs,” stated Derrick L. Jackson, Special Agent in Charge with the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Companies that seek unmerited payment for unnecessary and illegitimate services abuse the programs and divert funds meant to improve the health and prolong the lives of beneficiaries. HHS-OIG and our partners will actively pursue those who commit health care fraud.”
The litigation and settlement 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 claims resolved by this settlement are allegations only. Alpha Genomix Laboratories, Inc. does not admit wrongdoing or liability.
The case is captioned United States ex rel. Jane Doe, M.D. v. Aiken Counseling Group, LLC and Alpha Genomix Laboratories, Inc.
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Latvian National Sentenced to More Than 4 Years in Federal Prison, Ordered to Pay over $4.5M in Restitution after Defrauding Millions from Patent and Trademark Mail Fraud SchemeRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Viktors Suhorukovs, 37, a citizen of Latvia, was sentenced to more than four years in federal prison and ordered to pay over $4.5 million in restitution, after pleading guilty to mail fraud in a multi-million-dollar scheme, carried out over a nearly three-year period, that defrauded holders of United States trademark registrations.
“Our office will always seek out and utilize all means available to bring justice towards those who defraud United States citizens and businesses in efforts to steal millions of dollars,” said Acting U.S. Attorney DeHart. “Our office also appreciates the collaborative effort with the United States Patent and Trademark Office, the United States Postal Inspection Service, Homeland Security Investigations, and the Greenville Police Department to ensure justice was served.”
“On behalf of the United States Patent and Trademark Office, we are grateful for the work of the U.S. Attorney’s Office in South Carolina, Homeland Security, and the Greenville Police Department in bringing Mr. Suhorukovs to justice," said David S. Gooder, Commissioner for Trademarks. "Trademark filing scams are a growing international problem, with foreign entities increasingly targeting U.S. citizens with misleading solicitations. We are committed to the rigorous protection of all users of our world-class trademark register and are pleased to work with law enforcement to achieve a result like the one in this case.”
Evidence presented to the court showed that Suhorukovs established and operated Patent and Trademark Office, LLC, a limited liability company registered in the District of Columbia, and Patent and Trademark Bureau, LLC, a limited liability company registered in New York. These names closely resemble the official name of the United States Patent and Trademark Office (USPTO), which helped conceal the true source of trademark registration renewal notices Suhorukovs’ companies were mailing to registrants.
Suhorukovs’ renewal notices misrepresented the trademark registration’s expiration date. The renewal notices also contained a QR Code which linked the trademark holder directly to the official government USPTO website. The notices directed the victim to sign and return the notice. Once the victim signed and returned the renewal notice, Suhorukovs sent the victim an invoice for the renewal service and charged inflated prices for the renewal of the trademark. Victims would then, unknowingly, send renewal fees to Suhorukovs’ businesses, believing they were dealing with the USPTO.
In the notices and invoices, Suhorukovs represented he would renew the trademark registration, when in fact, he did not or could not renew the registration at the time he represented to the victims that he would because, under applicable law, those trademarks were not yet eligible for renewal. In addition, under the USPTO’s rules, Suhorukovs could not lawfully file renewal documents on behalf of registrants because he was not a licensed U.S. attorney.
Over 2,900 victims of the scheme have been identified.
United States District Judge Donald C. Coggins, Jr. sentenced Suhorukovs to 52 months in federal prison and 24 months of supervised release. There is no parole in the federal system. Suhorukovs was also ordered to pay $4,521,593.27 in restitution.
This case was investigated by the United States Postal Inspection Service, Homeland Security Investigations, and the Greenville Police Department. Assistant U.S. Attorney Winston Marosek prosecuted the case.
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Information on how the USPTO protects owners of United States trademark registrations from theft and scams can be viewed at: https://www.uspto.gov/trademarks/protect/scam-awareness.
Latta Man Sentenced to 7 Years in Federal Prison for Role in Dollar Store Armed RobberyRead the Press Release
Florence, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Che Quan Charon David Page, 26, of Latta, was sentenced to seven years in federal prison after pleading guilty to using, carrying, and brandishing a firearm during and in relation to a crime of violence.
Evidence presented to the Court showed that, on the morning of December 9, 2018, while an employee was opening a Dollar General store in Dillon, Page forced his way into the store. Page held the employee at gunpoint, forcing her to turn off the alarm and directing her to put the money from the store safe in a black drawstring bag he provided. Page then left the store.
Minutes later, a Dillon County Sherriff’s Deputy stopped a vehicle speeding away from the area of the Dollar General. As the passenger in the vehicle, Page was wearing distinctive clothing that matched clothing worn by the robber.
On a nearby roadside, law enforcement found a firearm consistent with that used by the robber, as well as a drawstring bag with cash both inside and scattered around the bag.
United States District Judge Sherri A. Lydon sentenced Page to 84 months in federal prison, to be followed by a 60-month term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Dillon County Sheriff’s Office.
Assistant United States Attorney Katherine Flynn prosecuted the case.
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Seven Defendants Arrested in Joint State/Federal Investigation into Myrtle Beach Drug Trafficking ConspiracyRead the Press Release
Myrtle Beach, South Carolina --- Acting United States Attorney M. Rhett Dehart announced today that a joint team of dozens of federal, state, and local law enforcement officers, led by the U.S. Drug Enforcement Administration (DEA), arrested seven individuals who have been indicted in federal court and face charges related to an interstate drug trafficking organization that operated out of Myrtle Beach and Kingstree.
The investigation specifically targeted members of this drug trafficking organization based on sales of large quantities of dangerous drugs, including heroin, methamphetamine, cocaine, and crack cocaine, and use of firearms in furtherance of their drug trafficking crimes.
The following defendants were arrested today and charged in a recently unsealed federal indictment:
- LEROY JUNIOR CUNNINGHAM, a/k/a “Black,” a/k/a “Chris,” 45, of Myrtle Beach, is charged with conspiracy to possess with intent to distribute and distribute 100 grams or more of a mixture or substance containing a detectable amount of heroin, a Schedule I controlled substance, and 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine and 500 grams or more of a mixture or substance containing a detectable amount of cocaine, Schedule II controlled substances. This charge carries a potential penalty of 10 years to Life imprisonment.
- TYRONE BROWN, a/k/a “Chief,” 46, of Myrtle Beach, is charged with conspiracy to possess with intent to distribute and distribute 100 grams or more of a mixture or substance containing a detectable amount of heroin, a Schedule I controlled substance, and 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine and 500 grams or more of a mixture or substance containing a detectable amount of cocaine, Schedule II controlled substances. This charge carries a potential penalty of 10 years to Life imprisonment.
- ALEX LETROY GLOVER, 41, of Conway, is charged with conspiracy to possess with intent to distribute and distribute 100 grams or more of a mixture or substance containing a detectable amount of heroin, a Schedule I controlled substance, and 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance. This charge carries a potential penalty of 5 to 40 years imprisonment.
- TONYA GRANT MITCHELL, 45, of Andrews, is charged with conspiracy to possess with intent to distribute and distribute 500 grams or more of a mixture or substance containing a detectable amount of cocaine, a Schedule II controlled substance. This charge carries a potential penalty of 5 to 40 years imprisonment.
- DERRICK LEE CUNNINGHAM, a/k/a “Ruby Tuby,” 43, of Myrtle Beach, is charged with conspiracy to possess with intent to distribute and distribute a quantity of heroin, a Schedule I controlled substance, 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine and a quantity of cocaine, Schedule II controlled substances. This charge carries a potential penalty of 5 to 40 years imprisonment.
- CAMERON JOHN KAZIMIERCZAK, a/k/a “Cam,” 30, of Myrtle Beach, is charged with conspiracy to possess with intent to distribute and distribute a quantity of methamphetamine and a quantity of cocaine, Schedule II controlled substances. This charge carries a potential penalty of up to 20 years imprisonment.
- MARLIN CARLOS MCKNIGHT, a/k/a “Martin Carlos McKnight,” 46, of Goose Creek, is charged with conspiracy to possess with intent to distribute and distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a quantity of cocaine base (commonly referred to as “crack cocaine”), and a quantity of cocaine, Schedule II controlled substances. This charge carries a potential penalty of 5 to 40 years imprisonment.
Three defendants are still at large, including JAMEL RASHAD SMALL, 32, of Myrtle Beach. Charges against the two other defendants remain sealed at this time.
This investigation is the latest in a series of joint state/federal operations aimed at curbing violent crime and drug overdoses in the Myrtle Beach area. In 2020 and 2021, Operation New Optix resulted in drug charges against 34 defendants, 22 of whom have pled guilty to date. In 2017, Operation Silver Sunset targeted 29 associates of a violent. In 2018, Operation Rise and Shine targeted 33 associates of a related gang. In 2020, Operation Broken Branch targeted 31 members of a drug trafficking organization in the Cedar Branch area of Horry County.
Agents with DEA’s Florence Resident Office quarterbacked this investigation with significant participation from the following agencies: Myrtle Beach Police Department, Horry County Police Department, North Myrtle Beach Department of Public Safety, Florence County Sheriff’s Office, Horry County Sheriff’s Office, South Carolina State Law Enforcement Division (SLED), United States Marshals Service, and the Kingstree Police Department.
“The United States Attorney’s Office continues to vigorously prosecute major drug trafficking organizations, and the charges here speak to those efforts,” said Acting U.S. Attorney DeHart. “I want to thank all our federal and local partners for the countless hours they have spent working to dismantle these organizations across the Myrtle Beach area. They continue to put themselves in harm’s way to make our communities safer.”
“These arrests are a direct result of the dedicated efforts between DEA and its law enforcement partners,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “Heroin, methamphetamine, cocaine and crack are dangerous drugs that pose a clear and present danger to any community. The Myrtle Beach area is safer today because these poly-drug traffickers have been removed from the streets.”
“Today is another example of what can be accomplished using the outstanding partnerships between federal, state, and local law enforcement,” said Chief Amy Prock of the Myrtle Beach Police Department. “The dedication displayed by these officers and agents, along with the support we receive from our community members, shows the continued commitment we all have in addressing the behaviors of those who wish to cause harm in our community.”
Special Assistant United States Attorney Ryan Waller who works jointly with the 15th Circuit Solicitor’s Office and Assistant United States Attorney Everett McMillian, Lead Task Force Attorney for the Organized Crime Drug Enforcement Task Force (OCDETF), are prosecuting the case.
OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Acting U.S. Attorney DeHart stated that all charges against these defendants are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Former TSA Official Sentenced to Federal Prison for Stealing from Federal Worker’s Compensation ProgramRead the Press Release
Florence, South Carolina --- Acting United States Attorney for the District of South Carolina M. Rhett DeHart announced today that Emmanuel Papas, 52, of Myrtle Beach, a former lead transportation security officer with the Transportation Security Administration (TSA), has been sentenced to more than one year in federal prison after pleading guilty to stealing from the Department of Labor’s Office of Workers Compensation Program.
“Federal employees should always respect the trust given to them, be it as a current or former employee,” said Acting United States Attorney DeHart. “Betraying that trust and stealing from the federal government never pays.”
Evidence presented in court established that Papas was injured on the job in 2004, when he served with the TSA at the Newark International Liberty Airport. Due to these injuries, Papas began receiving federal worker’s compensation benefits.
A subsequent federal investigation by TSA agents revealed that Papas was improperly receiving benefits because he was actively working at granite shops in the Myrtle Beach area from March 2009 through February 2020. Surveillance showed Papas working, interviews with various granite business employees confirmed that he worked at three Myrtle Beach-area retail granite shops, and deposits into Papas’s bank account showed income from Myrtle Beach-area granite businesses. The investigation also revealed that Papas disguised his income by having his earnings either paid in cash or with checks made payable in his family members’ names. Papas, who ultimately confessed, also completed at least eight federal forms attesting that he had no outside income and was, thus, eligible to continue to receive his benefits. The total loss to the federal government was just under $150,000.
United States District Judge Sherri A. Lydon sentenced Papas to one year and one day of imprisonment, to be followed by three years of supervised release. There is no parole in the federal system. Additionally, Papas was ordered to pay restitution of $148,982.42.
The matter was investigated by TSA-Investigations, Atlanta Field Office, with the assistance of the U.S. Department of Labor.
Assistant United States Attorney Derek A. Shoemake prosecuted the case.
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Aiken Man who Operated Drug Conspiracy from State Prison Sentenced to 32 Years in Federal PrisonRead the Press Release
Columbia, South Carolina---- Acting United States Attorney M. Rhett DeHart stated today that Eddie Brockington, 31, of Aiken County, was sentenced to 32 years in federal prison for conspiracy to possess with the intent to distribute 500 grams or more of methamphetamine and a quantity of heroin.
Evidence presented in court established that the Drug Enforcement Administration initiated an investigation into the narcotics distribution activities of co-defendants Eddie Brockington, a Georgia Department of Corrections inmate, and Kenneth Evans, a South Carolina Department of Corrections inmate.
Through controlled purchases and other investigative techniques, agents learned that members of the conspiracy purchased and distributed large amounts of methamphetamine and/or heroin for Brockington and Evans. Agents learned that Brockington used contraband cellphones, Facebook Messenger and other social media posting to have his co-defendants purchase, transport, and distribute large amounts of methamphetamine and/or heroin. Brockington was responsible for distributing more than 223 kilograms of methamphetamine and 3.5 kilograms of heroin throughout South Carolina while incarcerated in the Georgia Department of Corrections. The drugs were primarily sourced from Atlanta and were transported into South Carolina by various members of his organization and then sold to customers.
United States District Judge J. Michelle Childs sentenced Brockington to 32 years of incarceration, to be followed by 10 years of supervised release. Brockington will begin serving his federal sentence while also serving a state sentence in the Georgia Department of Corrections for trafficking methamphetamine.
Brockington is the eleventh defendant in the federal case to be sentenced to federal prison. Two additional defendants’ charges are still pending.
The case was investigated by agents of the Drug Enforcement Administration, Aiken County Sheriff's Department, and the South Carolina Department of Corrections. Assistant United States Attorney William K. Witherspoon of the Columbia office prosecuted the case.
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United States Obtains $140 Million in False Claims Act Judgments against South Carolina Pain Management Clinics, Drug Testing Labs, and Substance Abuse Counseling CenterRead the Press Release
Columbia, South Carolina---- Acting United States Attorney M. Rhett DeHart announced today that the United States District Court for the District of South Carolina has entered $140 million in default judgments against a group of South Carolina pain management clinics, drug testing laboratories, and a substance abuse counseling center. This combined judgment is one of the largest ever False Claims Act judgments in the District of South Carolina.
Specifically, a default judgment entered on September 2, 2021, for the United States against Oaktree Medical Centre, P.C., FirstChoice Healthcare, P.C., Labsource, LLC, Pain Management Associates of the Carolinas, LLC, and Pain Management Associates of North Carolina, P.C. totals $136,025,077. It follows a July 20, 2020 default judgment in this matter in the amount of $4,269,084.78 against ProLab, LLC and ProCare Counseling Center, LLC. The Court entered these judgments after these defendants failed to defend against the United States’ allegations.
In its Complaint, filed on May 31, 2019, the United States alleged the pain management clinics and drug testing laboratories – all of which were owned or operated by chiropractor Daniel McCollum – provided illegal financial incentives to doctors and mid-level providers to induce the referrals of urinary drug tests, in violation of the Stark Law and the Anti-Kickback Statute. The United States also alleged the pain management clinics, laboratories, and a substance abuse counseling clinic billed federal healthcare programs for unnecessary urinary drug testing. Finally, the United State alleged the pain management clinics billed or caused to be billed false claims for steroid injections, opioid prescriptions, and lidocaine ointment prescriptions because the injections and prescriptions were medically unnecessary and/or lacked a legitimate medical purpose.
McCollum answered the United States’ Complaint and remains a party to the ongoing litigation.
Congress passed the Stark Law and the Anti-Kickback Statute to prevent financial incentives from improperly influencing medical decision-making, which can lead to excessive and unnecessary tests and services. Among other things, the Stark Law prohibits billing Medicare for laboratory testing services referred by a physician who has a financial relationship with the laboratory. The Anti‑Kickback Statute prohibits offering or paying anything of value to induce the referral of items or services covered by federal health care programs, including laboratory testing services.
“Improper financial relationships between health care providers and laboratories can lead to overutilization and increase the cost of health care services paid for by the taxpayers,” said Acting Assistant Attorney General Brian M. Boynton of the Department of Justice’s Civil Division. “We will continue to ensure that health care decisions are based on the needs of patients rather than the financial interests of providers.”
“Patients should not have to question whether their doctor recommended a test or procedure for personal gain,” said Acting U.S. Attorney DeHart. “For years, these companies used improper financial incentives to generate healthcare provider referrals. This $140 million judgment is a cautionary tale of why health care fraud does not pay.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Donna Rauch, Muriel Calhoun, Brandy Knight, Karen Mathewson, and Tracy Hawkins, former employees of pain management clinics owned or operated by McCollum. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery.
The qui tam cases are captioned United States ex rel. Rauch, et al. v. Oaktree Medical Centre, P.C., et al., No. 6:15-cv-01589-DCC (D.S.C.); United States ex rel. Mathewson v. Dr. Daniel A. McCollum, et al., No. 6:17-CV-01190-DCC (D.S.C.); and United States ex rel. Hawkins v. Pain Management Associates of the Carolinas, LLC, et al., No. 8:18-cv-02952-DCC (D.S.C.).
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the United States Attorney’s Office for the District of South Carolina, with assistance from the Federal Bureau of Investigation, the Department of Health and Human Service’s Office of Inspector General, the South Carolina Attorney General’s Office, and the Defense Criminal Investigative Service.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare 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 Assistant U.S. Attorney Beth Warren and Justice Department Fraud Section Attorneys Yolonda Campbell, Michael Kass, Christopher Terranova, and David Wiseman.
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United States Obtains $140 Million in False Claims Act Judgments Against South Carolina Pain Management Clinics, Drug Testing Laboratories and a Substance Abuse Counseling CenterRead the Press Release
On Thursday, the U.S. District Court for the District of South Carolina entered default judgments for the United States totaling $136,025,077 against Oaktree Medical Centre P.C. (Oaktree), FirstChoice Healthcare P.C. (FirstChoice), Labsource LLC (Labsource), Pain Management Associates of the Carolinas LLC (PMA of the Carolinas) and Pain Management Associates of North Carolina P.C. (PMA of North Carolina). This is the second time the court has entered a default judgment in this matter. On July 20, 2020, the court entered a default judgment in the amount of $4,269,084.78 against ProLab LLC (ProLab) and ProCare Counseling Center LLC (ProCare). The court entered these judgments after these defendants failed to defend against the United States’ allegations.
In its complaint, filed on May 31, 2019, the United States alleged that Oaktree, FirstChoice, Labsource, PMA of the Carolinas and PMA of North Carolina — all of which were owned or operated by chiropractor Daniel McCollum — provided illegal financial incentives to providers to induce their referrals of urine drug tests in violation of the Stark Law and the Anti-Kickback Statute. The United States also alleged that ProCare, a substance abuse counseling clinic, and ProLab, a urine drug testing laboratory partially owned by McCollum, billed federal health care programs for unnecessary urine drug tests. McCollum answered the United States’ complaint and remains a party to the ongoing litigation.
Congress passed the Stark Law and the Anti-Kickback Statute to prevent financial incentives from improperly influencing medical decision-making, which can lead to excessive and unnecessary tests and services. Among other things, the Stark Law prohibits billing Medicare for laboratory testing services referred by a physician who has a financial relationship with the laboratory. The Anti‑Kickback Statute prohibits offering or paying anything of value to induce the referral of items or services covered by federal health care programs, including laboratory testing services.
“Improper financial relationships between health care providers and laboratories can lead to overutilization and increase the cost of health care services paid for by the taxpayers,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “We will continue to ensure that health care decisions are based on the needs of patients rather than the financial interests of providers.”
“Patients should not have to question whether their doctor recommended a test or procedure for personal gain,” said Acting U.S. Attorney M. Rhett DeHart for the District of South Carolina. “For years, these companies used improper financial incentives to generate health care provider referrals. This $140 million judgment is a cautionary tale of why health care fraud does not pay.”
The judgment includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Donna Rauch, Muriel Calhoun, Brandy Knight, Karen Mathewson and Tracy Hawkins, former employees of pain management clinics owned or operated by McCollum. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam cases are captioned United States ex rel. Rauch, et al. v. Oaktree Medical Centre, P.C., et al., No. 6:15-cv-01589-DCC (D.S.C.); United States ex rel. Mathewson v. Dr. Daniel A. McCollum, et al., No. 6:17-CV-01190-DCC (D.S.C.); and United States ex rel. Hawkins v. Pain Management Associates of the Carolinas, LLC, et al., No. 8:18-cv-02952-DCC (D.S.C.).
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division's Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of South Carolina, with assistance from the FBI, the Department of Health and Human Service’s Office of Inspector General, the South Carolina Attorney General’s Office, and the Defense Criminal Investigative Service.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare 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 Fraud Section Attorneys Yolonda Campbell, Michael Kass, Christopher Terranova, and David Wiseman, along with Assistant U.S. Attorney Beth Warren of the District of South Carolina.
Bluffton Man Sentenced to over 20 Years in Federal Prison for Distribution of Heroin, FentanylRead the Press Release
Charleston, South Carolina ---- Acting United States Attorney M. Rhett DeHart announced today that Edwin M. Jenkins, Jr., 33, of Bluffton, was sentenced to over twenty years in federal prison after pleading guilty to one count of distribution of a mixture of heroin and fentanyl, one count of distribution of heroin, and one count of possession with intent to distribute 40 grams or more of fentanyl.
Evidence presented in court showed that Jenkins sold either heroin, fentanyl, or a mixture of heroin and fentanyl to a confidential informant on multiple occasions. On April 12, 2017, Jenkins was arrested when he arrived at a location where he believed he was going to sell drugs to an informant. As law enforcement moved to make an arrest, Jenkins fled on foot and dropped a bag containing over 57 grams of a mixture containing fentanyl, before being apprehended.
Jenkins’ criminal history included multiple prior felony drug convictions, and he was on parole on state charges at the time of his criminal conduct in this case.
United States District Court Judge Bruce H. Hendricks sentenced Jenkins to 250 months in federal prison, to be followed by a 96-month term of supervised release. There is no parole in the federal system.
The case was investigated by agents of the Federal Bureau of Investigation, the Bluffton Police Department, and the Fourteenth Circuit Solicitor’s Office. Assistant United States Attorney Nick Bianchi and Special Assistant United States Attorney Carra Henderson prosecuted the case.
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Three Associated with Columbia Gangs, Including Local Gang Leader, Sentenced to a Total of 19 Years in Federal PrisonRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that three defendants associated with violent Columbia street gangs – Daisean Montez Skeeters, 27, of Elgin; Trenton Jermaine Portee, 26, of Columbia; and Zykese Demar Trevon Howell, 20, of Columbia – were sentenced in total to more than 19 years in federal prison after pleading guilty to federal firearms violations.
According to evidence presented in court, Skeeters and Portee are validated gang members, and Howell is a gang associate. Skeeters is also the leader of a local hybrid gang known to engage in violence and other criminal conduct, according to evidence presented in court by law enforcement.
“Gang violence and violence associated with drug distribution will not be tolerated in South Carolina,” said Acting U.S. Attorney DeHart. “The results from these cases were only possible because of tremendous partnerships with federal, state, and local partners who continue to prioritize an aggressive response to violent crime. We will continue to work together to make communities safer across South Carolina.”
Skeeters pled guilty to being a felon in possession of a firearm and ammunition. Evidence presented in court showed that, around 10:30 PM on October 18, 2019, a Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) task force officer observed an Instagram story with Skeeters brandishing a tan firearm with a high-capacity magazine. The officer, who knew Skeeters was a felon and affiliated with various street gangs, notified the Midlands Gang Task Force. Hours later, the officer observed another Instagram story showing Skeeters with a group of associates, including one on GPS ankle monitor known to have active bench warrants. That associate has since been the victim of a homicide by gunshot. Orangeburg County Sheriff’s Office deputies were able to detain the associate, as well as stop a vehicle in which Skeeters was a passenger. When searching the vehicle, law enforcement located the tan firearm with an extended magazine loaded with 28 rounds of ammunition. Federal law prohibits Skeeters from possessing firearms and ammunition based on prior felony convictions, including five firearm convictions, numerous drug convictions, and two failure to stop for blue lights convictions, among others, in 2013, 2015, 2017, and 2018.
Portee also pled guilty to being a felon in possession of a firearm and ammunition. Evidence presented in court showed that on September 3, 2019, Portee was pulled over by a Columbia Police Department officer. After stopping his car, Portee fled on foot. During the chase, the officer observed a black pistol in Portee’s right hand and gave Portee loud verbal commands to stop and drop the firearm. Portee then tripped over a fence and was apprehended by the officer. After Portee was placed in handcuffs and rolled over, a loaded .40 caliber pistol was located on the ground under Portee. The pistol was stolen in Richland County a year prior. Additionally, through ballistics testing by ATF and the South Carolina Law Enforcement Division (SLED), it was determined that the gun was preliminary linked to two local attempted homicides – one in which the victim was shot in the back of the head. Portee was also prohibited from possessing firearms and ammunition based on prior felony convictions, including three firearm convictions, numerous drug convictions, and convictions criminal domestic violence, Assault & Battery, and Strong Arm Robbery in 2013, 2014, 2015, and 2016.
Howell pled guilty to the distribution of marijuana and possession of a firearm in furtherance of a drug trafficking crime. Evidence presented in court showed that between January and February 2020, Howell and a co-defendant, who is a validated gang member, sold an ATF undercover agent 11 firearms, 5 of which were loaded with a total of 81 rounds of ammunition, and approximately 242 grams of marijuana. Four of the firearms had been previously stolen and ballistics testing by ATF and SLED determined that two of the firearms were previously used in shootings in Richland County.
The ballistics analysis used in the Portee and Howell cases was through the National Integrated Ballistic Information Network (NIBIN), 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. More information on NIBIN can be found at: https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
United States District Court Judge J. Michelle Childs sentenced Skeeters to 84 months in federal prison, to be followed by a 3-year term of court-ordered supervision. Judge Childs sentenced Portee to 86 months in federal prison, to be followed by a three-year term of court-ordered supervision; and Judge Childs sentenced Howell to 61 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 cases were investigated by the ATF, Columbia Police Department, Richland County Sheriff’s Department, Lexington County Sheriff’s Department, Orangeburg County Sheriff’s Office, the Midlands Gang Task Force, and SLED. Assistant United States Attorney Elliott B. Daniels prosecuted the cases.
The cases were 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.
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South Carolina Medical Provider Pleads Guilty to Federal Health Care FraudRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Joseph Benjamin Barton, 47, of Mount Pleasant, the owner and operator of Midlands Physical Medicine LLC in Richland County, has pleaded guilty to a felony count of health care fraud for billing Medicare for $194,000 that was not due.
Evidence presented in court showed that, from June 2016 until February 2017, Barton, through Midlands Physical Medicine, fraudulently submitted false claims to Medicare Part B for implantable neuro-stimulator pulse generators that beneficiaries did not receive and submitted “approvals” for such devices by a doctor no longer affiliated with the practice.
While Barton submitted claims to Medicare stating that another affiliated physician rendered the procedure, that physician was not a part of the practice, was living in Florida at the time, and was unaware that Barton submitted these claims using his identifiers as the provider that rendered the services. In actuality, a physician’s assistant was providing Medicare beneficiaries an auricular electrical nerve stimulation device not covered by Medicare, in place of an implantable stimulator device, to provide relief from pain and/or headaches.
United States District Judge J. Michelle Childs accepted Barton’s guilty plea and will sentence Barton at a later date. The maximum penalties Barton faces include ten years of imprisonment, a $250,000 fine, and three years of supervised release.
The Office of the Inspector General for United States Department of Health and Human Services is investigating the case, and Assistant United States Attorney Winston Holliday is prosecuting the case.
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13 Charged with Federal Drug Conspiracy and Firearms Charges in Operation Cash OutRead the Press Release
Charleston, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that a joint team of more than 200 federal, state, and local law enforcement officers arrested nine individuals who have been charged in federal court for their roles in an alleged drug trafficking conspiracy that operated in the Charleston area as well for firearms charges. Four additional defendants are not in custody at this time.
The arrests made in “Operation Cash Out” follow a months-long joint investigation between the FBI, ATF, HSI, City of Charleston Police Department, the North Charleston Police Department, the Charleston County Sheriff’s Office, SLED, Summerville Police Department, Berkeley County Sheriff’s Office, Dorchester County Sheriff’s Office, Mount Pleasant Police Department, Charleston County Aviation Authority Police Department, and the 9th Circuit Solicitor’s Office.
The arrests also follow a 46-count indictment being returned by a Federal Grand Jury targeting alleged members of the violent street gang West Cash, in the case of United States v. Antwan Xavier Grant et al.
“Drug gangs are a primary reason for the violent crime surge not only in South Carolina but also across the nation,” said Acting U.S. Attorney DeHart. “Violent gang activity will never be tolerated in South Carolina. The United States Attorney’s Office and our local, state, and federal partners will not stop in our efforts to stop major drug traffickers, who use guns and violence to advance their activities. On behalf of our office, I thank our local, state and federal law enforcement agencies for their constant bravery in making the arrests today and for their unwavering partnership in making our communities safer.”
The indictment alleges that, starting in September 2016 to the present, six of the thirteen defendants conspired to possess and distribute cocaine, crack cocaine, methamphetamine, heroin, and marijuana. For their respective drug charges, the defendants could face up to 40 years in federal prison.
Additionally, four of the defendants have been charged with conspiring to make false statements to licensed firearms dealers in order to purchase firearms, as well as 13 individual charges of lying to licensed firearms dealers in order to purchase firearms, including an AR 15 pistol, FN 5.7 pistols, and a Glock 29.
The indictment alleges that these defendants lied to local licensed dealers, including Palmetto State Armory, ATP Gun Shop, Field & Stream, and Sportsman’s Warehouse, by attesting that they were the true purchaser of a firearm, when it is alleged that they were not. Each of the firearm-related counts carry up to 10 years in federal prison.
The indictment also charges five of the defendants with using telephones to facilitate their drug trafficking conspiracy, counts that each carry up to 4 years in federal prison.
Multiple charges for felon in possession, possession of firearm in furtherance of drug trafficking, and possession with intent to distribute drugs are also included in the indictment. These charges carry up to between 5 and 40 years in federal prison.
The nine defendants in custody are:
- Antwan Xavier Grant, a/k/a “Twan,” 25, of Charleston
- Tevin Jermaine Fulmore, a/k/a “Goon,” 27, of North Charleston
- Zyshonne Tremonte Dayon Gantt, a/k/a “Z Man,” 22, of Charleston
- Rashad Montez Heyward-Williams, a/k/a “Boola Bucks,” 28, of Charleston
- De’Andre Marquel Williams, a/k/a “Riley” and “Rilo,” 24, of Charleston
- Essence Tamia Cemon Ancrum, a/k/a “Poopie,” 24, of North Charleston
- Antonio Snipe, Jr., a/k/a “Bruiser,” 21, of Charleston
- Demetrius Samire Costen, a/k/a “Meechie,” 27, of North Charleston
- Jackie Benson, 46, of Summerville
Assistant United States Attorney Whit Sowards is prosecuting the case.
Acting U.S. Attorney DeHart stated that all charges against these defendants are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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