District of South Carolina
Press releases recorded for this federal judicial district.
Acting U.S. Attorney Urges Participation in National DEA Drug Take Back DayRead the Press Release
Charleston, South Carolina --- With the Drug Enforcement Agency (DEA) 20th National Prescription Drug Take Back Day set for Saturday, April 24, Acting United States Attorney M. Rhett DeHart is urging the public to participate in the semi-annual event and remove opioids and other medicines from homes where they could be stolen or abused by family members and visitors.
Rates of prescription drug abuse in the United States are alarmingly high, as are the number of accidental poisoning and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. Additionally, according to new numbers from the CDC, opioid overdose deaths have increased during the pandemic.
“Because expired, unused, and unwanted medicines that languish in home cabinets are highly susceptible to abuse and misuse, the public is encouraged to participate in the spring DEA Drug Take Back Day,” said Acting U.S. Attorney DeHart. “Taking advantage of the safe, convenient, and anonymous means of disposing of prescription drugs can not only protect you but also your family and friends.”
On Saturday, April 24 from 10:00 AM to 2:00 PM at more than 50 locations across South Carolina, the DEA and its partners will collect tablets, capsules, patches, and solid forms of medication. Vaping devices and cartridges will also be accepted, so long as the lithium batteries are removed. Liquids including intravenous solutions and syringes, as well as illegal drugs, will not be accepted. All collection sites will adhere to local COVID-19 guidelines and regulations to maintain the safety of all participants and local law enforcement.
For more information about the event and to find a collection site, visit DEATakeBack.com or call 1-800-882-9539.
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South Carolina’s Largest Urgent Care Provider and its Management Company to Pay $22.5 Million to Settle False Claims Act AllegationsRead the Press Release
Columbia, South Carolina --- Acting United States Attorney for the District of South Carolina M. Rhett DeHart announced today that Doctors Care, P.A. (“Doctors Care”) – South Carolina’s largest urgent care provider network – and its management company, UCI Medical Affiliates of South Carolina, Inc. (“UCI”), will pay $22.5 million to resolve civil allegations of healthcare fraud in violation of the False Claims Act.
The case began with a whistleblower complaint alleging that Doctors Care, UCI, and UCI Medical Affiliates, Inc. (a related holding company), falsely certified that certain urgent care visits were performed by providers who were credentialed to bill Medicaid, Medicare, and TRICARE for medical services. Whereas, the services were performed by non-credentialed providers, according to the complaint.
Federal health insurance companies require physicians and midlevel providers to apply for and receive approval to bill any services to the insurer. This approval is known as a provider’s “billing credentials.” Providers are obligated to renew these billing credentials periodically and must obtain new credentials with new employment.
As early as 2013 and continuing to 2018, it is alleged that UCI was unable to secure and maintain necessary billing credentials for most Doctors Care providers. UCI knew that federal insurance programs would deny claims submitted with the billing number of a provider who had not yet received their billing credentials. But instead of solving its credentialing problem – or holding claims while a temporary solution could be found – UCI allegedly submitted the claims falsely, “linking” the uncredentialed rendering providers to credentialed billing providers in order to get the claims paid.
With each “linked” bill, it is alleged that UCI knowingly submitted a false claim for payment. Evidence obtained in support of the allegations includes emails memorializing UCI’s “linking” scheme and well-organized “cheat sheets,” as employees called them, which UCI used to keep track of properly-credentialed billing providers whose names could be substituted on uncredentialed providers’ bills.
The “billing credentials” at issue in this case are distinct from a provider’s degree or license to practice medicine. There is no evidence in this case that any Doctors Care provider lacked a medical license or that patient care was compromised due to the conduct at issue.
“When healthcare companies do business with the federal government, they must follow the rules like everyone else,” said Acting U.S. Attorney DeHart. “All companies with this distinction – regardless of size – should honor their commitment to provide competent care to the full letter of the law. Our office will continue to protect tax dollars and ensure the rule of law is followed.”
“Taxpayers and Medicare patients rightly expect medical providers to be properly credentialed before billing for their services,” said Derrick L. Jackson, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services (“HHS-OIG”). “Working with our law enforcement partners, we will continue protecting Federal healthcare programs.”
"The results of this investigation exemplify the commitment of the United States Department of Defense Criminal Investigative Service (“DCIS”) and its law enforcement partners to root out fraud and corruption involving unscrupulous companies that undermine the integrity of the Department of Defense," said Special Agent in Charge Christopher Dillard of the DCIS Mid-Atlantic Field Office. "This case should serve as a stark warning to those who attempt to exploit Department of Defense resources for personal gain."
The settlement of $22.5 million is the result of over three years of investigation, led by the United States Attorney’s Office in coordination with the HHS-OIG and DCIS. Upon receiving the first investigative subpoena in early 2018, management for UCI and Doctors Care acted promptly to investigate and stop the conduct subject to this settlement.
In addition to the monetary settlement, UCI and Doctors Care also entered into a Corporate Integrity Agreement with the Office of Inspector General. Among other things, the Corporate Integrity Agreement requires that for the next five years UCI must retain an Independent Review Organization to perform a claims review in accordance with the specific requirements of the Corporate Integrity Agreement, and it requires that UCI routinely be monitored by the Office of Inspector General.
This matter was investigated and negotiated by Assistant United States Attorney Brook Andrews and Assistant United States Attorney Nancy Cote, with the assistance of Special Agent Ryan Schubert of HHS-OIG and Special Agent Doyle Mullis of DCIS. The whistleblowers were represented by Bert Louthian, John Simmons, Bill Nettles, and Fran Trapp.
The case is captioned United States ex. rel. Dove v. UCI Medical Affiliates, Inc., et. al, 2:17-cv-02291-RMG (D.S.C.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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Assistant U.S. Attorney from South Carolina Honored by FBI for Prosecution of Cocaine Drug ConspiracyRead the Press Release
Columbia, South Carolina --- Acting United States Attorney for the District of South Carolina M. Rhett DeHart announced today that the Columbia Division of the Federal Bureau of Investigation (FBI) has recognized Assistant United States Attorney Benjamin Garner for his work in the prosecution of nearly 100 violent street gang members of a major cocaine and crack cocaine trafficking conspiracy operating throughout South Carolina’s Midlands.
“The work of Assistant United States Attorney Benjamin Garner, as well as the support of Assistant United States Attorney Jane Taylor and Supervisory Legal Administrative Specialist Shana Greenway, on ‘The Movement’ prosecution represents the best of our office,” said Acting U.S. Attorney DeHart. “‘The Movement’ case also highlights the incredible collaborative efforts of local, state, and federal law enforcement agencies to make our communities safer and better places.”
After many drug-related shootings in a confined area led the Sumter Police Department to connect a group of individuals to a gang-style operation in the area known as “The Movement,” federal assistance was sought. Through the collaboration of local, state, and federal law enforcement agencies, over a dozen cocaine suppliers for the drug dealers in the area were apprehended and pled guilty to federal drug charges. The investigation then led to the arrest of more than three dozen individuals and the seizure of almost 20 pounds of cocaine and $9 million in drug money, followed by the prosecution of an additional thirty-eight defendants. In total, federal charges were brought against 91 defendants for drug and firearm offenses with “The Movement” case.
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Georgetown Pharmacy to Pay $24,500 to Resolve Claims of Recordkeeping Requirement FailureRead the Press Release
Columbia, South Carolina---- Acting United States Attorney M. Rhett DeHart announced today that his office has resolved claims that RPh Now, LLC d/b/a/ The Medicine Shoppe of Georgetown failed to abide by recordkeeping requirements of the Controlled Substances Act. RPh Now, LLC will pay $24,500 to resolve the claims and agrees to comply with heightened reporting requirements for a two-year period.
“Pharmacies have a duty to ensure legally compliant tracking and dispersing of controlled substances,” said Acting U.S. Attorney DeHart. “Adhering to proper recordkeeping and prescription review is essential to helping fight the opioid epidemic. Our office will continue to work with our federal partners to see that doctors and pharmacies assist in preventing the abuse and diversion of controlled substances.”
This matter was investigated by the Drug Enforcement Administration’s Columbia District Office Diversion Group and Assistant United States Attorney Beth Warren.
The claims resolved by this settlement are allegations only. RPh Now, LLC does not admit wrongdoing or liability.
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Acting U.S. Attorney Offers Tips for Keeping Families Safe OnlineRead the Press Release
Charleston, South Carolina --- Following the recent sentencing of a Cheraw man for transferring obscene material to a minor, Acting U.S. Attorney M. Rhett DeHart urges the public to take necessary precautions to keep themselves and their families safe from online predators.
“Be it through social media or other online messaging apps, predatory criminals have used sly communications efforts to victimize neighbors including children,” said Acting U.S. Attorney DeHart. “Our office urges the public to utilize the FBI Safe Online Surfing Program that covers important topics like cyberbullying, passwords, malware, and social media, while also understanding and following measures proven to help protect them in the consistently-evolving technological world.”
Acting U.S. Attorney DeHart offers the following advice for families to utilize to keep their families safe:
Advice for Children
- Keep your accounts private.
- Do not accept requests from strangers. Block or ignore messages from strangers.
- Be selective about the information and pictures you share online. Know and assume that any content you create online – texts, photos and/or videos – can and will be made public, permanently. Nothing "disappears" online. Once you send something, you have no control over where it goes.
- Understand that people can pretend to be anything/anyone online and that images can be altered or stolen.
- Be suspicious and stop communicating if you meet someone on one app, and they ask you to move to a different platform.
- If you feel overwhelmed or victimized, do not hesitate to ask for help, including that of law enforcement. Do not feel ashamed to report crimes.
- Immediately report anything you may believe is illegal to your local police department or to the FBI at 1-800-CALL-FBI (225-5324) or https://tips.fbi.gov.
Advice for Adults
- Openly communicate with your children about online activity and possible victimization.
- Place limits on internet use and consider shutting down Wi-Fi overnight.
- Know and maintain passwords to phones, tablets, and computers.
- Spot check phones, tablets and computers and know what apps are being used and what is being downloaded.
- Ensure social media settings are set at the strictest level possible.
- Monitor who is in communication with your child and what is being said.
- Immediately report anything you may believe is illegal to your local police department or to the FBI at 1-800-CALL-FBI (225-5324) or https://tips.fbi.gov.
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More information on the FBI Safe Online Surfing Program can be found at: https://www.fbi.gov/about/community-outreach/safe-online-surfing-sos-program.
South Carolina Man Sentenced to 12 Years in Federal Prison for Possession and Use of Explosive DevicesRead the Press Release
Anderson, South Carolina---- Acting United States Attorney M. Rhett DeHart announced today that Michael Lambert Seabrooke, 37, formerly of Barnwell, was sentenced to 12 years in federal prison after pleading guilty to possession of explosive devices and two counts of malicious damage and attempt to damage by means of explosive materials.
Evidence presented in court established that on July 7, 2019, a Pickens Police Department officer, after hearing an explosion, located a destructive device in a fenced-in area of the Pickens County Courthouse located at 214 East Main Street in Pickens. The device had detonated and caused minor damage to the building, but no injuries were reported. A preliminary investigation indicated the device was made of two metal pipe bombs attached with a belt to a propane cylinder with the valve in the open position. The pipe bombs detonated but did not ignite the propane. During a search of the area, law enforcement officers recovered items from the scene including galvanized metal pipes, pieces of pipe endcaps, black plastic bag type material, green plastic bag type material, a propane cylinder, along with propane cylinder hose.
Multiple law enforcement agencies worked together in the investigation to promptly locate the subject responsible. During the investigation, surveillance video was obtained from nearby businesses. In the video, a Chevy Silverado pickup truck with a South Carolina license plate was identified as a suspect vehicle. The vehicle was registered in Columbia; and, on July 9, 2019, the vehicle was located in front of a residence there. Federal agents maintained surveillance on the vehicle until contact was made with a subject walking to the truck. A Federal Bureau of Investigation (FBI) Task Force Officer approached the male and identified the subject as Michael Seabrooke.
During an interview, Seabrooke confessed to federal agents that he placed the device at the Pickens County Courthouse and that he also threw several destructive devices on the roof of the Department of Social Services building in Pickens. Agents obtained Seabrooke’s consent to search his truck and the bomb squad located two metal pipe bombs and two incendiary devices (Molotov cocktails) inside the vehicle. During a search of his residence and vehicle, agents located materials consistent with those found on the explosive devices.
Agents also went to the Department of Social Services building in Pickens where they recovered additional explosive devices consisting of three Molotov cocktails and one detonated pipe bomb that caused minimal damage.
During his interview, Seabrooke was completely cooperative with law enforcement and indicated he placed the devices and acted because he was concerned about issues with the Department of Social Services and his family.
United States District Court Judge Timothy M. Cain sentenced Seabrooke to 144 months in federal prison followed by 36 months of supervised release. There is no parole in the federal system.
The case was investigated by the Pickens County Sheriff’s Office, the Pickens Police Department, the FBI, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant United States Attorney Max Cauthen handled the case.
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Spartanburg Felon Sentenced to 15 Years in Federal Prison for Unlawful Gun PossessionRead the Press Release
Greenville, South Carolina---- Acting United States Attorney M. Rhett DeHart announced today that Jerrod Dupree Lyman, Jr., 30, of Spartanburg, was sentenced to 15 years in federal prison after pleading guilty to being a felon in possession of firearms and ammunition.
Evidence presented in court established that on August 8, 2019, members of the Spartanburg County Sheriff’s Office were looking for Lyman on outstanding warrants. Deputies observed Lyman come out of a residence in Inman and flee into the woods. During the chase, deputies observed Lyman carrying a backpack and gave him several commands. Lyman dropped the backpack but continued to flee. Lyman was eventually taken into custody. The recovered backpack contained two loaded 9mm pistols. Lyman was also in possession of a quantity of methamphetamine. Due to prior convictions for domestic violence and multiple drug offenses, Lyman is prohibited from possessing firearms and ammunition. Based on his prior record, the Court sentenced Lyman as an Armed Career Criminal.
United States District Court Judge Timothy M. Cain imposed a sentence of 180 months in federal prison to be followed by 60 months of supervised release. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Spartanburg County Sheriff’s Office. Assistant United States Attorney Max Cauthen prosecuted the case.
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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Acting U.S. Attorney DeHart Urges Public to be Vigilant of Internet Crimes, After South Carolinians Lost More Than $30 Million in 2020 to CybercriminalsRead the Press Release
Charleston, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that, according to the Federal Bureau of Investigation’s 2020 Internet Crime Report, South Carolinians lost more than $30 million to cyber criminals in the past year. Acting U.S. Attorney DeHart urges the public to remain vigilant of cybercrimes, so they do not fall victim.
“Cybercrimes can inflict lifelong damage to the victims,” said Acting U.S. Attorney DeHart. “That is why the investigative work of the FBI and the prosecutorial efforts for cybercrime by our office will not end until such crimes come to a halt. Until that day comes, the public must remain vigilant, particularly during the pandemic, to avoid falling prey to the exploitative cybercriminals.”
The annual report from the FBI noted an increase of more than 300,000 suspected internet crime complaints from 2019, with nearly 800,000 reported in 2020 for reported losses of over $4.2 billion nationwide.
In South Carolina and across the country, victims lost the most money in 2020 to business email compromise / email account compromise (BEC/EAC), followed by romance scams. Victims of BEC/EAC crimes in South Carolina reported losses of over $8.3 million, while victims of romance scams in South Carolina reported losses of more than $4.4 million.
2020 also led to the emergence of COVID-19 scams. Nealy 30,000 complaints by individuals and businesses have been reported across country for crimes related to the pandemic scams.
“The pandemic has unfortunately emboldened cyber criminals to try to take advantage of many neighbors, including those working from home and staying home more often in general,” said Acting U.S. Attorney DeHart. “Our office encourages South Carolinians and South Carolina businesses to protect themselves with video call security measures and additional ways to protect sensitive information.”
Victims of cybercrimes are encouraged to contact the FBI’s Internet Crime Complaint Center at www.ic3.gov.
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South Carolina data from the 2020 Internet Crime Report can be found at https://www.ic3.gov/Media/PDF/AnnualReport/2020State/StateReport.aspx#?s=45.
Columbia Man Sentenced to More Than 8 Years in Federal Prison for Unlawful Possession of a Firearm and AmmunitionRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced that Ra’Quan Rasheen Williams, 24, of Columbia, was sentenced to more than eight years in federal prison, after pleading guilty in September 2020 to being a felon in possession of a firearm and ammunition.
Evidence presented in court established that on March 8, 2019, Columbia Police Department officers were conducting a property check at an apartment complex on Alcott Drive in Columbia. Officers saw Williams and two other individuals near a car in the apartment complex parking lot. The officers smelled marijuana coming from the area where the car was parked and approached Willliams and the others to investigate further. During a pat down search of Williams, one officer felt a firearm in Williams’ waistband. Williams immediately began running from the scene and dropped a 9mm pistol which was recovered by officers on the scene. Williams was eventually apprehended after a short chase through the apartment complex. The 9mm pistol that Williams dropped was loaded with 17 rounds of ammunition in a large capacity magazine. Williams was also found with a quantity of heroin after his arrest.
Williams was prohibited from possessing a firearm or ammunition based on several prior state convictions. Williams was under community supervision at the time of his arrest, after serving a five-year prison sentence for a 2014 conviction of assault and battery of a high and aggravated nature during an incident in which an individual was shot. In 2015, Williams was convicted of burglary that included the theft of guns from a residence. Williams was also convicted in 2018 of carrying or concealing a weapon while he was an inmate at the Lee Correctional Institution in Bishopville.
Senior United States Judge Terry L. Wooten sentenced Williams to 100 months imprisonment for the felon in possession of a firearm and ammunition charge, to be followed by a three-year term of supervised release. There is no parole in the federal system.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Columbia Police Department. Assistant United States Attorney Christopher D. Taylor of the Columbia office prosecuted the case.
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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Columbia Woman Sentenced to More Than 15 Years in Federal Prison for Enticing a Minor to Engage in Sexual ActivityRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that India Tykeyah-Najee Cuyler, a/k/a “Lady Tank,” 26, of Columbia, was sentenced to more than 15 years in federal prison, after pleading guilty in February 2019 to using a facility of interstate commerce to entice a minor under the age of 18 to engage in sexual activity.
Cuyler’s co-defendant, Donnell Salethian Woodard, a/k/a “Tank,” 33, also of Columbia, was sentenced February 24, 2021, to 25 years imprisonment, after pleading guilty to conspiracy to sex traffic minors and benefiting from sex trafficking of minors. Woodard was also ordered to pay restitution to the minor victims, register as a sex offender, and will be on supervision for 15 years following service of the term of imprisonment. There is no parole in the federal system.
“The cruelty of sex trafficking is hard to comprehend, and it must be punished severely,” said Acting U.S. Attorney DeHart. “This sentence closes the door on the horrific crimes committed by these defendants and demonstrates our commitment to stopping sex trafficking in South Carolina.”
“Today’s sentencing, along with the previous sentencing of Donnell Woodard, has brought an end to a local child sex trafficking operation,” said Susan Ferensic, Federal Bureau of Investigation (FBI) Special Agent in Charge. “These hideous crimes are frequently uncovered by local law enforcement. We thank the Lexington Police Department and the West Columbia Police Department for their vigilance and dedication as they worked alongside the FBI to bring these individuals to justice. We ask that if anyone sees any indication that a child is being trafficked, they report such to their local law enforcement agency or the FBI.”
Evidence presented to the court showed that on November 21, 2017, undercover officers with the Lexington Police Department encountered a minor advertising sex via a website. An undercover officer set up a time to meet with the minor at a local motel, wherein officers observed the minor being dropped off by Cuyler and Woodard. Officers learned that the minor was 16 years old and a runaway. When Cuyler and Woodard returned to the local motel to pick the minor up, officers placed them both under arrest. The investigation led to another nearby motel where the second minor, who was also involved in the illegal venture, was located. The investigation further revealed Woodard and Cuyler were using a cell phone to post photographs and advertisements for commercial sex with the minors on a website and taking a portion of the proceeds. The investigation further showed that the minors had sometimes up to ten (10) meetings per day at various hotel rooms rented by Woodard.
At sentencing, Cuyler received an obstruction of justice enhancement for 2017 jail phone calls in which she attempted to have another minor assault the minor victims in retaliation for cooperating with law enforcement. Cuyler also lost her reduction for acceptance of responsibility for pleading guilty after she assaulted another inmate inside the jail, which resulted in a state assault charge.
During the sentencing, United States District Court Judge J. Michelle Childs also ordered Cuyler to make restitution to the victims involved. Following service of her 188-month term of imprisonment, Cuyler will be on supervised release for 15 years and will be required to register as a sex offender.
The case was investigated by the FBI, the Lexington Police Department, and the West Columbia Police Department. Assistant United States Attorney Stacey D. Haynes of the Columbia office prosecuted the case.
The 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.
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Cheraw Man Sentenced to Nearly Seven Years for Transferring Obscene Material to Minor After Multi-State OperationRead the Press Release
Florence, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Nathan Branham, 40, of Cheraw, was sentenced to nearly seven years in federal prison after pleading guilty to transferring obscene material to a minor and having his federal supervised release revoked.
Evidence presented to the Court showed that Branham, who was on supervised release for a previous federal conviction for being a felon in possession of a firearm, coerced a 13-year-old minor in Kentucky to speak with him via video chat and threatened to come to her home if she did not expose herself to him. After she complied, Branham exposed himself to the minor.
“This office will always protect children and will act swiftly to prosecute those who seek to do them harm,” said Acting U.S. Attorney DeHart. “I commend the excellent work by the Secret Service and our law enforcement partners in Kentucky and South Carolina. They moved quickly to identify and arrest a repeat offender who was operating across state lines. Our communities are safer because of their work.”
According to evidence presented to the Court, Branham contacted the minor through the online social media application Uplive, a live-streaming platform that allows viewers to broadcast and view real-time videos via their smartphones. Using the screen name Mystic, Branham learned the minor’s age, told the minor he was sixteen years old, and convinced the minor to contact him using the Google Duo video chat application.
As presented to the Court, the minor instantly noticed Branham was an adult male. Although Branham stated that he had a genetic condition that made him look older, the minor ended the call. At that point Branham claimed he could find the minor’s address and threatened the minor into engaging in another call with him. On that call, Branham told the minor to expose herself or he was going to “find out your address and have a little talk to you.” After the minor complied, Branham also exposed himself. The minor reported the matter to her parents. The parents contacted Branham, at which point Branham falsely claimed to be a police officer whose children had initiated the call.
The parents reported the matter to police. The Kentucky Attorney General’s Office Internet Crimes Against Children (ICAC) task force immediately initiated a case in conjunction with the United States Secret Service. The ICAC task force program is a national network of 61 coordinated task forces representing over 4,500 federal, state, and local law enforcement and prosecutorial agencies. The investigation in Kentucky quickly revealed that Branham lived in South Carolina, and within a week he was arrested as part of a joint operation between the Secret Service and the South Carolina Attorney General’s Office ICAC task force.
Branham – who has convictions for indecent exposure and assault and battery of a high and aggravated nature – admitted to engaging in similar interactions with minors on more than thirty occasions and admitted to having had sexual intercourse with a minor when he was 29 years old. Branham had also been released from federal prison only three months earlier after serving more than eight years for being a felon in possession of a firearm. As a result of this conduct, his supervised release was also revoked.
Senior United States District Judge Terry L. Wooten sentenced Branham to 21 months in federal prison for violating his federal supervised release. United States District Court Judge Sherri A. Lydon sentenced Branham to 60 months in federal prison for transferring obscene material to a minor. Judge Lydon ordered that the 60-month sentence run consecutively with the sentence imposed by Judge Wooten, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system. After his release, Branham will be required to register as a sex offender.
This case was investigated by the United States Secret Service, the South Carolina Attorney General’s Office ICAC task force, and the Kentucky Attorney General’s Office ICAC task force. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, 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 to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Assistant United States Attorney Derek A. Shoemake of the Florence office prosecuted the case.
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Three Former Orangeburg County Sheriff’s Office Deputies Sentenced to Federal Prison for Their Roles in Narcotics Conspiracies and Visa FraudRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that three former deputies with the Orangeburg County Sheriff’s Office – Carolyn Colter Franklin, 64; Allan Hunter, 52; and Nathaniel Miller Shazier, III, 29 – all from Orangeburg County, were sentenced to multi-year sentences in federal prison for using their positions as law enforcement officers to conspire with who they believed to be members of a Mexican drug cartel. In addition, Franklin and Hunter were sentenced on federal charges of conspiring to obtain fraudulent U-visas for non-immigrants in exchange for bribes.
“These sentences highlight that no one is above the law,” said Acting U.S. Attorney DeHart. “Anyone brazen enough to conspire with cartels to commit crimes, especially those placed in public trust, will be met with the full force of the federal government.”
“Those sentenced were trusted by their communities to serve and protect,” said Susan Ferensic, Federal Bureau of Investigation (FBI) Special Agent in Charge. “Instead, while still wearing a badge, they decided to work on behalf of a drug cartel and facilitate the distribution of illegal drugs. Keeping to the FBI’s mission, we aggressively pursued this investigation bringing together dedicated Agents and an array of resources to root out corrupt law enforcement officers who dishonor the profession. The FBI is committed to ensuring law enforcement maintains the trust of the public it serves by never ceasing to pursue the corrupt.”
Evidence presented to the Court showed that, during an undercover operation conducted by the FBI between December 2018 and March 2019, Franklin, Hunter, and Shazier agreed to help protect trucks containing what they believed were drug proceeds derived from narcotics distribution by members of a Mexican drug cartel drug ring. The members were actually undercover FBI agents. Additionally, the three agreed to help protect trucks containing kilogram quantities of methamphetamine and cocaine in the future.
Evidence presented in court also showed that, between February 2018 and March 2019, in exchange for bribes, Franklin and Hunter created fraudulent documents for non-immigrants. Specifically, the documents were designed to help the immigrants achieve U non-immigrant status, which, by statute, is reserved for victims of certain crimes who have suffered mental or physical abuse and are helpful to law enforcement in the investigation or prosecution of criminal activity.
Senior United States District Judge Joseph F. Anderson, Jr. sentenced Franklin to 61 months in federal prison, Hunter to 63 months in federal prison, and Shazier to 46 months in federal prison. Each defendant’s sentence will be followed by 36 months of supervised release. There is no parole in the federal system.
The case was investigated by the FBI and the South Carolina Law Enforcement Division (SLED).
Assistant United States Attorney Benjamin Garner and Assistant United States Attorney Brook Andrews prosecuted the case.
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Lexington Woman Gets 10 Years in Federal Prison on Drug ChargesRead the Press Release
Columbia, South Carolina – Acting United States Attorney M. Rhett Dehart announced today that Ashley Shay Cook, 38, of Lexington, was sentenced to ten years in federal prison after pleading guilty to conspiracy to possess with intent to distribute methamphetamine and cocaine.
Evidence presented in court established that on December 21, 2018, deputies with the Lexington County Sheriff’s Department responded to Cook’s residence in search of a wanted person known to frequent the residence. After consent to search the residence for the fugitive, law enforcement observed drug paraphernalia in plain view. Law enforcement obtained and executed a search warrant on the residence and located approximately 241 grams of methamphetamine, approximately 2 grams of cocaine, baggies commonly used to package drugs for individual sales, and digital scales. After waiving her Miranda rights, Cook admitted to possessing the drugs and making drug sales. Cook was on probation at the time of the instant offense.
United States District Judge Mary Geiger Lewis sentenced Cook to 120 months in federal prison, followed by 48 months of court-ordered supervision. There is no parole in the federal system.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Lexington County Sheriff’s Department. Special Assistant United States Attorney Casey Rankin Smith prosecuted the case.
The 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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Fourth Circuit Court of Appeals Affirms $114 Million Judgment Against 3 Defendants Found Liable of Defrauding Medicare and TricareRead the Press Release
Columbia, South Carolina --- Acting United States Attorney for the District of South Carolina M. Rhett DeHart announced today that the United States Court of Appeals for the Fourth Circuit has affirmed a $114 million judgment against Floyd Calhoun “Cal” Dent, III, of Lexington, and his two co-conspirators, all of whom a South Carolina jury found liable for defrauding the federal healthcare programs Medicare and Tricare.
At trial, the United States contended that, when specialty labs Health Diagnostics Laboratory, Inc. (“HDL”) and Singulex, Inc. paid commissions to Dent’s marketing firm, BlueWave, based on the number of blood tests sold, the parties violated the Anti-Kickback Statute. The United States argued these volume-based commissions constituted “remuneration” intended to induce BlueWave’s sales representatives to sell as many blood tests as possible. The United States also contended the Anti-Kickback Statute prohibited BlueWave from paying its salespeople for recommending the tests. By paying these kickbacks, the defendants caused false claims to be submitted to federal healthcare programs for millions of dollars in unnecessary blood tests. The jury agreed, and now the Fourth Circuit has affirmed the jury’s verdict in a published opinion.
“This is an important victory for patients, the Medicare Program, and American taxpayers,” said Acting U.S. Attorney M. Rhett DeHart. “Individuals who scheme to defraud our federal health care system must be held personally accountable for their actions. This judgment, which was affirmed by the Court of Appeals, will send a strong deterrent message that this kind of conduct will not be tolerated. I am extremely proud of our office, particularly our Affirmative Civil Enforcement section, for its tireless work on this case. It takes a true team effort to protect the great people of South Carolina.”
“This result underscores the department’s commitment to holding accountable those who pay improper commissions or other financial incentives,” said Acting Assistant Attorney General Brian M. Boynton for the Justice Department’s Civil Division. “Kickbacks undermine the public’s trust in the healthcare system and the integrity of federal healthcare programs.”
The Fourth Circuit found the United States “provided abundant evidence as to Defendants’ knowledge and intent” to pay kickbacks. The court acknowledged that attorneys within HDL and BlueWave warned the defendants that paying commissions to independent contractors might well violate the Anti-Kickback Statute. The United States also presented sufficient evidence that outside lawyers warned all three defendants about the illegality of the commissions.
The Fourth Circuit also rejected the defendants’ contention that commissions to salespeople can never constitute kickbacks under the Anti-Kickback Statute, and found that the scheme violated the Statute and, in turn, violated the False Claims Act. Additionally, the court found the defendants’ contention that they were entitled to a new trial based on a variety of purported legal errors in the jury instructions to be “meritless.”
Finally, the Fourth Circuit rejected Dent’s challenge to the district court’s determination that pre-judgment transfers of three properties to Dent’s wife and two corporations controlled by her were fraudulent. The court upheld the district court’s finding, citing the timing of the transfers, the nominal amount paid for the properties, the fact that the transfers were made to family members, and the fact that the transfers were made several months after Dent knew he was under federal investigation.
The published opinion, U.S. v. LaTonya Mallory et al., No. 18-1811, filed February 22, 2021, may be found at https://www.ca4.uscourts.gov/Opinions/181811.P.pdf.
The appeal was handled by the Appellate Staff of the Justice Department. The underlying case was handled by Assistant U.S. Attorneys James Leventis, Tina Cundari, and Johanna Valenzuela of the U.S. Attorney’s Office for the District of South Carolina; the Commercial Litigation Branch of the Justice Department’s Civil Division; Health and Human Services, Office of the Inspector General; the Federal Bureau of Investigation; the U.S. Office of Personnel Management Office of the Inspector General; and the Department of Defense Office of Inspector General, Defense Criminal Investigative Service.
The civil lawsuit was filed in the District of South Carolina based on several whistleblower complaints and is captioned United States of America et al v. BlueWave Healthcare Consultants Inc., 9:14-cv-00230-RMG.
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This case illustrates the government’s emphasis on combating health care fraud. Tips and complaints from all sources about potential health care fraud, waste, and abuse can be reported to the Department of Health and Human Services at 1-800-HHS-TIPS (800-447-8477) or [email protected].
United States Reaches Settlement with Charleston County School District to Ensure Equal Opportunities for English Learner StudentsRead the Press Release
Charleston, South Carolina – The Department of Justice’s Civil Rights Division and United States Attorney’s Office for the District of South Carolina announced today a settlement agreement with the Charleston County School District to resolve an investigation into complaints that the school district failed to communicate essential information to thousands of Spanish-speaking, limited English proficient (LEP) parents and denied their children full and equal access to the district’s education programs and services.
The investigation found that the school district often failed to use qualified interpreters to communicate with Spanish-speaking, LEP parents and guardians, even when their need for an interpreter was documented or otherwise evident. It also found that the school district did not consistently translate essential written information into Spanish, nor did it explain options on important decisions about school programs and services with parents in a language they understood.
The agreement, which stems from the United States’ investigation under Title VI of the Civil Rights Act of 1964 and the Equal Educational Opportunities Act of 1974, will ensure that the school district provides English Learner students and LEP parents the services needed to succeed in the school district’s educational programs.
Under the agreement, the school district, which cooperated at every stage of the investigation and is committed to improving its practices through revised policies and professional development, will:
- Implement effective policies and procedures and provide employees with training to properly identify and meaningfully communicate with LEP parents and guardians;
- Use qualified interpreters and translators at each of the district’s 80 schools and programs to communicate with parents about matters essential to their children’s education and cease relying on family members, untrained staff, and students for such purposes;
- Provide LEP parents with access to documents and information about program offerings, including special education services, in a language they understand at each of the district’s 80 schools and programs;
- Ensure that all parents and guardians knowingly consent to, or decline educational programming and services for, their children; and
- Contact LEP parents and guardians prior to holding special education-related meetings to notify them of the right to have a qualified interpreter at the meeting and translated special-education related documents, at no cost to the parent or guardian.
“Empowering parents and guardians with the information necessary to meaningfully participate in their children’s education is critical to students’ success in school and beyond. We must continue the work to ensure that all parents have this opportunity, regardless of national origin or English proficiency,” said Pamela S. Karlan, Principal Deputy Assistant Attorney General of the Civil Rights Division. “We are encouraged by the Charleston County School District’s commitment and cooperation and look forward to continuing to work with the district to implement this agreement and fulfill its promise of equal treatment for all of the district’s students and their parents.”
“The Charleston County School District should be commended for its cooperation with this investigation and for its commitment to its students, parents, and guardians,” said Acting U.S. Attorney for the District of South Carolina M. Rhett DeHart. “The U.S. Attorney’s Office looks forward to continue working with the school district, as it strives to be a model for other districts in providing full and equal access to information.”
The enforcement of Title VI of the Civil Rights Act of 1964 and the Equal Educational Opportunities Act of 1974 is a top priority of the Department of Justice’s Civil Rights Division.
Information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at https://www.justice.gov/crt/educational-opportunities-section.
Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/.
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U.S. Attorney's Office Sponsors 18th Annual Project Safe Neighborhoods Logo ContestRead the Press Release
Columbia, South Carolina ---- Acting United States Attorney M. Rhett DeHart announced today the official call for submissions for the United States Attorney’s Office’s 18th Annual Project Safe Neighborhoods (PSN) Logo Contest. The statewide contest welcomes students to illustrate ways to help prevent gun violence in our schools by designing a logo for use on upcoming PSN publications.
The contest is open to all South Carolina grade school students and entries will be categorized into four grade divisions: K-2, 3-5, 6-8, and 9-12 grades. A winner will be selected from each of the four divisions, and each division winner will receive $50. An overall winning logo will be chosen from the four division winners and will receive an additional $50 prize for a total of $100.
The winning entries will be selected by a select group of students from the South Carolina Department of Juvenile Justice, who encourage children and promote community awareness of the consequences of juvenile crime. In addition to the South Carolina Department of Juvenile Justice, the United States Attorney’s Office is proud to partner with the South Carolina Law Enforcement Officers’ Association and the South Carolina Sheriffs’ Association for this year’s contest.
Entries should be consistent with the theme of “Preventing Gun Violence in Our Schools.” The deadline for submissions is April 2, 2021. Any student interested in participating in the contest should share that intention with his or her local school, as contest information has been sent to all South Carolina schools. Applications and contest rules may also be found online at https://www.justice.gov/usao-sc/programs/ceasefire/project-sentry/contest-winners/contest-rules.
PSN focuses on reducing violent crime in our communities through enforcement, reentry, and prevention initiatives. The annual logo contest is an important prevention initiative that has proven to be an effective way to engage students in meaningful conversation about preventing gun crimes amongst young people and ensuring a safe learning atmosphere for children. More information on the contest and previous years’ winning logos can be viewed at:
http://www.justice.gov/usao/sc/programs/logowinners.html.
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Aiken Resident Sentenced to 10 Years in Federal Prison on Meth ChargesRead the Press Release
Columbia, South Carolina---- Acting United States Attorney M. Rhett DeHart announced today that James Sydnor Willis, 40, of Aiken County, was sentenced to 10 years in federal prison for conspiracy to possess with the intent to distribute 50 grams or more of methamphetamine.
Evidence presented in court established that the Drug Enforcement Administration (DEA) initiated an investigation into the narcotics distribution activities of Kenneth Evans and Eddie Brockington, co-defendants in the case. Both Evans and Brockington were serving sentences in state prisons at the time of the conspiracy – Evans in the South Carolina Department of Corrections and Brockington in the Georgia Department of Corrections. Through controlled purchases and other investigative techniques, agents learned that members of the conspiracy purchased and distributed large amounts of methamphetamine and heroin for Evans and Brockington. Some of the individuals charged were responsible for transporting multi-kilogram amounts of methamphetamine and heroin into South Carolina and then distributing the drugs throughout the state. Willis was involved in purchasing and distributing methamphetamine in the Aiken County area for Evans. Willis was arrested several times with methamphetamine nearby.
United States District Judge J. Michelle Childs sentenced Willis to 120 months in federal prison, followed by eight years of supervised release. There is no parole in the federal system.
The case was investigated by agents of the DEA and the Aiken County Sheriff's Office. Assistant United States Attorney William K. Witherspoon prosecuted the case.
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M. Rhett DeHart Named as Acting U.S. Attorney for District of South CarolinaRead the Press Release
Charleston, South Carolina – By virtue of the Vacancies Reform Act, M. Rhett DeHart is officially Acting United States Attorney for the District of South Carolina, following the resignation of U.S. Attorney Peter M. McCoy, Jr. Acting U.S. Attorney DeHart formerly served as the District’s First Assistant U.S. Attorney – supervising the Criminal, Civil, Appellate and Administrative Divisions in the District of South Carolina, as well as serving as the primary liaison between the U.S. Attorney’s Office and the Chief U.S. District Judge.
A native of North Augusta, S.C. and a resident of Mount Pleasant, S.C. – Acting U.S. Attorney DeHart has served as an Assistant U.S. Attorney in the District’s Charleston office since 2001, prosecuting a variety of crimes while focusing on white-collar fraud and child exploitation. The recipient of the United States Attorney’s Award in 2006, 2009, and 2014, and numerous law enforcement awards – Acting U.S. Attorney DeHart has prosecuted hundreds of felonies, authored thirty appellate briefs, tried approximately twenty jury and non-jury trials, and argued seven cases before the Fourth Circuit Court of Appeals.
Prior to joining the Department of Justice, Acting U.S. Attorney DeHart was a Counsel on the United States Senate Judiciary Committee, where he supervised the criminal legislation section. A graduate of the Honors College at the University of South Carolina, Acting U.S. Attorney DeHart graduated Order of the Coif from the University of South Carolina School of Law.
Acting U.S. Attorney DeHart will serve in the position until a successor is appointed by the President and confirmed by the Senate.
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Georgia Man Sentenced to 6.5 Years in Federal Prison for Defrauding the Medicaid Programs in South and North CarolinaRead the Press Release
Charlotte, North Carolina --- United States Attorney Peter M. McCoy, Jr., of the District of South Carolina and United States Attorney Andrew Murray of the Western District of North Carolina announced that Markuetric Stringfellow, 37, of Powder Springs, Georgia, has been sentenced to 78 months in prison and 3 years of supervised release for defrauding the South and North Carolina Medicaid programs. In addition to the prison term imposed, U.S. District Judge Kenneth D. Bell also ordered Stringfellow to pay over $5 million as restitution, including more than $700,000 to the South Carolina Medicaid program.
The South Carolina Scheme
According to court documents filed with the U.S. District Court in South Carolina, Stringfellow was a franchise owner of Wrights Care Services LLC (Wrights Care), a qualified provider of Medicaid rehabilitative behavioral health services in South Carolina. Wrights Care was located at 1320 Main Street, in Columbia, South Carolina, and maintained separate franchise locations throughout South Carolina, including in Spartanburg, Pickens, Cheraw, Society Hill, Bennettsville, Hartsville, and Conway. In April 2014, Wrights Care became a participating provider in the South Carolina Medicaid program, which allowed Wrights Care to submit claims for behavioral mentoring services reimbursable under Medicaid.
Starting in or around 2014, Stringfellow and his co-conspirators defrauded the South Carolina Medicaid program by filing fraudulent claims for services that were either not provided, partially provided, or did not qualify for reimbursement. According to court records, to support the fraudulent reimbursement claims filed with the South Carolina Medicaid, Stringfellow and his co-conspirators submitted falsified patient billing records and fake medical notes. Furthermore, court records show that after learning there was a Medicaid audit for Wrights Care, Stringfellow and his co-conspirators attempted to deceive South Carolina Medicaid auditors. In or about March 2015, Stringfellow met other associates of Wrights Care in Columbia for a “note party,” during which the co-conspirators created false and fraudulent billing records to substantiate previously-submitted fraudulent Medicaid claims, forged signatures, and falsified records subject to the audit, which they then submitted to South Carolina Medicaid auditors in response to the audit.
The North Carolina Scheme
In addition to executing a fraudulent scheme in South Carolina, Stringfellow defrauded the North Carolina Medicaid program. According to filed court documents and today’s sentencing hearing, Stringfellow was a resident of Charlotte and Greensboro, North Carolina, and a partner in Everlasting Vitality, LLC (EV) and Do-It-4-The Hood Corporation (D4H). D4H operated after-school programs in Charlotte, Greensboro, Winston-Salem, and Rocky-Mount, North Carolina. Beginning in or about January 7, 2016, and continuing through November 12, 2018, Stringfellow and his co-conspirators executed a conspiracy to defraud the North Carolina Medicaid program by soliciting illegal kickbacks from various drug testing laboratories, in exchange for referrals of North Carolina Medicaid beneficiaries obtained through the after-school programs operated by EV and D4H.
According to court documents, Stringfellow and his co-conspirators paid individuals to recruit at-risk youths, in particular children who were Medicaid eligible, for EV’s or D4H’s after-school and youth mentoring programs. Once enrolled, children were required to submit urine specimens for drug testing. Stringfellow and his co-conspirators conspired with certain laboratories to perform the drug testing of the urine specimens submitted in the names of children enrolled at EV and D4H and received kickbacks after the laboratories were reimbursed by the North Carolina Medicaid.
In addition to the kickback scheme, Stringfellow and his conspirators devised a scheme to defraud North Carolina Medicaid by referring clients to laboratories which they knew would file fraudulent claims and receive reimbursement based on drug testing services that did not meet the drug testing policy requirements. For example, on some occasions, Stringfellow and his co-conspirators obtained personal identifying information (PII) of D4H clients, such as names, addresses, dates of birth, and Medicaid beneficiary numbers, which they provided to drug testing laboratories. In turn, the laboratories used D4H clients’ PII to submit drug testing claims to the North Carolina Medicaid that were fraudulent because, among other reasons, the drug tests were not medically necessary, or the urine specimens were not of the Medicaid beneficiaries under whose names they were submitted. Once North Carolina Medicaid paid the fraudulent claims submitted by the testing laboratories for these unauthorized and medically unnecessary drug tests, the labs then paid companies under the control of Stringfellow and others, at an agreed percentage of their Medicaid reimbursement.
In July 2020, the criminal case pending against Stringfellow in South Carolina federal court was transferred to the U.S. District Court for the Western District of North Carolina for further proceedings. On August 21, 2020, Stringfellow pleaded guilty to conspiracy to commit Medicaid fraud in connection with both federal prosecutions.
Stringfellow will be ordered to report to the federal Bureau of Prisons to begin serving his sentence upon designation of federal facility.
In making today’s announcement, U.S. Attorney McCoy and U.S. Attorney Murray commended the investigative work of the FBI field offices in Columbia, Charlotte, and Atlanta, as well as the Medicaid Investigation Divisions in Columbia, Raleigh, and Atlanta; and thanked the U.S. Attorney’s Office for the Northern District of Georgia for their assistance and coordination.
Assistant U.S. Attorneys Brook Andrews with the U.S. Attorney’s Office in Columbia and Michael Savage with the U.S. Attorney’s Office in Charlotte prosecuted the case.
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Irmo Man Sentenced to 19 Years in Federal Prison on Narcotics and Firearms ChargesRead the Press Release
Columbia, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that Steve Seman Hattar, 57, of Irmo, was sentenced to 19 years in federal prison after pleading guilty to possessing with intent to distribute methamphetamine and possessing a firearm in furtherance of a drug trafficking crime.
Evidence presented to the Court showed that, on October 31, 2019, officers from Richland County Sheriff’s Department made a traffic stop on a vehicle driven by Hattar and located suspected methamphetamine, heroin, and other narcotics, as well as three firearms and ammunition. Later that day, law enforcement searched a hotel room used by Hattar and found methamphetamine and other narcotics. Further investigation revealed Hattar had trafficked some 43 kilograms of methamphetamine and one kilogram of heroin in the six months prior to the traffic stop. Hattar had previously served a significant sentence for a federal drug crime in another state.
Senior United States District Judge Joseph F. Anderson, Jr. sentenced Hattar to 228 months in federal prison, to be followed by a ten-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Drug Enforcement Administration (DEA) and the Richland County Sheriff’s Department.
Assistant United States Attorney Katherine Flynn prosecuted the case.
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Columbia Man Sentenced to 25 Years in Federal Prison for Sex Trafficking of MinorsRead the Press Release
Columbia, South Carolina --- United States Attorney Peter M. McCoy, Jr. announced today that Donnell Salethian Woodard, a/k/a “Tank,” age 33, of Columbia, South Carolina, was sentenced today in federal court to 25 years imprisonment after pleading guilty in September 2019 to conspiracy to sex traffic minors and benefiting from sex trafficking of minors.
Evidence presented to the court showed that on November 21, 2017, undercover officers with the Lexington Police Department encountered a minor advertising sex via a website. An undercover officer set up a time to meet with the minor at a local motel, wherein officers observed the minor being dropped off by Woodard and India Tykeyah-Najee Cuyler, a/k/a “Lady Tank,” age 26. Officers placed both Woodard and Cuyler under arrest. The investigation led to another nearby motel where a second minor, who was also involved in the illegal venture, was located. The investigation revealed Woodard and Cuyler were using a cell phone to post advertisements for commercial sex with the minors on a website and taking a portion of the proceeds. Woodard and Cuyler were both charged federally.
During the sentencing, United States District Court Judge J. Michelle Childs also ordered Woodard to make restitution to the victims involved. Following service of his term of imprisonment, Woodard will be on supervised release for 15 years and will be required to register as a sex offender.
Co-defendant India Cuyler previously pled guilty in federal court to using a facility of interstate commerce (a cell phone) to entice a minor under the age of 18 to engage in sexual activity. Her sentencing hearing is scheduled for March 17, 2021.
The case was investigated by the Federal Bureau of Investigation (FBI), the Lexington Police Department, and the West Columbia Police Department and prosecuted by Assistant United States Attorney Stacey D. Haynes.
It 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.
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Aiken Resident Sentenced to 11 Years in Federal Prison on Meth ChargesRead the Press Release
Columbia, South Carolina---- United States Attorney Peter M. McCoy, Jr. announced that Christopher J. Ford, 49, of Aiken County, was sentenced to 11 years in federal prison for conspiracy to possess with the intent to distribute 50 grams or more of methamphetamine and for violation of his supervised release.
Evidence presented in court established that the Drug Enforcement Administration (DEA) initiated an investigation into the narcotics distribution activities of Kenneth Evans and Eddie Brockington, co-defendants in the case. Through controlled purchases and other investigative techniques, agents learned that members of the conspiracy purchased and distributed large amounts of methamphetamine and heroin for Evans and Brockington. Some of the individuals charged were responsible for transporting multi-kilogram amounts of methamphetamine and heroin into South Carolina and then distributing the drugs throughout the state. Ford and others were involved in purchasing and distributing methamphetamine in the Aiken County area for Evans.
United States District Judge J. Michelle Childs of Columbia sentenced Ford to ten years in federal prison, followed by eight years of supervised release. There is no parole in the federal system.
Ford had been on federal supervised release for a prior conviction for conspiracy to distribute methamphetamine when he committed this offense. Judge Childs sentenced Ford to a consecutive 12 months in prison for violating his previous supervised release.
The case was investigated by agents of the DEA and the Aiken County Sheriff's Office. Assistant United States Attorney William K. Witherspoon prosecuted the case.
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Former SCANA CEO Pleads Guilty to Conspiracy to Commit Mail and Wire FraudRead the Press Release
Columbia, South Carolina --- United States Attorney Peter M. McCoy, Jr. announced today that Kevin B. Marsh, former SCANA Corporation (SCANA) Chief Executive Officer and former Chairman of its Board of Directors, pleaded guilty in federal court to conspiracy to commit mail and wire fraud. With the guilty plea, Marsh admits that he intentionally defrauded ratepayers, while he oversaw and managed the company’s operations – including the construction of two reactors at the V.C. Summer Nuclear Station – so that SCANA could obtain and retain rate increases imposed on SCANA’s customers and qualify for up to $2.2 billion in tax credits.
Today’s plea follows a previous guilty plea by Stephen A. Byrne, former Executive Vice President of SCANA and former Chief Operating Officer of South Carolina Electric & Gas Company (SCE&G), to conspiracy to commit mail and wire fraud, as well as a previously announced agreement with Dominion Energy that will, over time, provide at least four billion dollars of South Carolina ratepayer relief. It also follows a previously announced settlement by SCANA and SCE&G on a Securities and Exchange Commission lawsuit charging them with defrauding investors by making false and misleading statements about the nuclear plant expansion that was ultimately abandoned.
Today’s plea is the result of an exhaustive and multi-year joint investigation by the U.S. Attorney’s Office, South Carolina Attorney General’s Office, Federal Bureau of Investigation (FBI), U.S. Securities and Exchange Commission (SEC), and South Carolina Law Enforcement Division (SLED).
“Every day, this office protects South Carolinians from criminals of all types,” said U.S. Attorney McCoy. “Our office will always seek justice for those victimized by individuals or entities that misuse positions of trust and responsibility. Today’s plea shows that no one, not even a Fortune 500 CEO, is above the law. Of course, our efforts in this case would not be possible without the support of our federal and state law enforcement partners.”
“Today’s plea is another step in bringing to justice those individuals responsible for this vast and audacious fraud that impacted so many people throughout South Carolina and beyond,” said FBI Special Agent in Charge Susan Ferensic. “The FBI’s work is not done, however. We will see this case through while we continue to fulfill our mission to investigate and hold accountable those who seek to commit mass fraud and theft.”
This case arises out of the failed nuclear project at the V.C. Summer Nuclear Station in Jenkinsville, South Carolina. In 2008, SCANA and its subsidiary SCE&G announced their intention to build two new nuclear units with their minority partner, the South Carolina Public Service Authority, a state-owned public power and water utility commonly known as Santee Cooper.
As evidence presented to the court showed, beginning in November 2011, Marsh was the highest-ranking official within SCANA and, as such, oversaw and managed the company’s operations, including the construction of the two nuclear reactors.
From its inception, substantial delays and cost overruns plagued the project. No later than late 2016, Marsh knew that efforts by the company’s builder, Westinghouse, to improve the pace and productivity of the project were woefully inadequate. Marsh learned that at least one unit under construction was in grave jeopardy of not being completed and producing power by December 31, 2020, then the critically important deadline for SCANA to secure federal nuclear production tax credits valued up to $2.2 billion.
With this specific knowledge, using both wires and mail, Marsh conspired with others to defraud customers with misleading statements and omissions. This includes concealing the truthful status of the failing mega-project and making false and materially misleading statements in late 2016 to the South Carolina Public Service Commission (PSC), the Office of Regulatory Staff (ORS), the financial community and the general public.
For example, following a December 27, 2016, press release by Toshiba announcing a potential multi-billion dollar writedown related to Westinghouse’s nuclear construction business, Marsh and others received a confidential telephone briefing from senior Westinghouse officials, who indicated Westinghouse’s costs to complete the new units would be significantly higher than expected. Also on December 27, 2016, Marsh received a separate briefing from a senior Toshiba official indicating that Toshiba could not absorb the financial hit suggested by new estimates from Westinghouse’s subcontractor of the work remaining on the project. These briefings led Marsh to believe there existed a heightened risk of further construction delays. Yet, on December 29, 2016, when the ORS requested detailed information from SCANA regarding the construction schedule for both units, Marsh and his coconspirators fraudulently withheld the information provided by Westinghouse and Toshiba.
In the plea agreement, Marsh agrees to cooperate fully with federal, state, and local law enforcement agencies. He also agrees to testify fully and truthfully before any grand juries until the investigation and prosecution in the criminal acts that occurred in relation to the failed V.C. Summer Nuclear plant expansion are complete. Additionally, in the plea agreement, prosecutors and Marsh recommended a five million dollar forfeiture.
On the federal charge, Marsh faces a maximum penalty of five years in prison, a fine of up to $250,000, and supervised release of up to 3 years.
United States District Judge Mary G. Lewis accepted the guilty plea and will sentence Marsh after receiving and reviewing a sentencing report prepared by the United States Probation Office.
Assistant United States Attorneys Jim May, Brook Andrews, Winston Holliday, and Emily Limehouse are prosecuting the case in federal court, along with Special Assistant United States Attorney John O’Halloran.
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us_attorney_mccoy_prepared_remarks.pdfU.S. Attorney Peter McCoy Announces ResignationRead the Press Release
Charleston, South Carolina – United States Attorney for the District of South Carolina Peter M. McCoy, Jr., has announced that he will be resigning as U.S. Attorney effective 11:59 p.m. on February 28, 2021.
“It has been the honor of my lifetime to serve our great nation and our beloved State of South Carolina as United States Attorney,” said U.S. Attorney McCoy in a resignation letter to the President. “Working daily with the dedicated public servants of this office to impartially enforce the rule of law, defend our Constitution, and make our communities safer is a privilege for which I will be forever grateful.”
U.S. Attorney McCoy began his service as U.S. Attorney on March 30, 2020, being first appointed Interim U.S. Attorney and then receiving unanimous confirmation by the Senate. Before being sworn in as U.S. Attorney, he served as the Chairman of the Judiciary Committee in the South Carolina House of Representatives and as an attorney in private practice. Prior to his time in private practice, U.S. Attorney McCoy served for five years as a criminal prosecutor in the Ninth Circuit Solicitor’s Office.
As the chief federal law enforcement officer responsible for federal criminal prosecutions and civil litigation involving the United States in the District of South Carolina, U.S. Attorney McCoy led the district of approximately 62 Assistant United States Attorneys, 75 support staff, and 18 contract support staff in four divisions across four offices throughout the state.
Under U.S. Attorney McCoy’s direction and in spite of a pandemic, the office used focused efforts to make quality cases and targeted fraud, civil wrongdoing, and criminal activity related to the coronavirus; attacked public corruption; fought to keep South Carolina communities safe from gun crimes, violence, and drugs; prosecuted substantial healthcare fraud; placed renewed emphasis on eradicating human trafficking and child exploitation; protected the Constitutional rights of South Carolinians; defended civil lawsuits filed against the United States and its federal agencies; and enhanced partnerships with local, state, and federal law enforcement agencies.
Among other things, these efforts made communities across South Carolina safer and resulted in charges and convictions against hundreds of defendants. The office also collected more than $54 million for taxpayers in 2020 alone. Of this amount, $49,000,580.36 was collected in civil actions and $4,839,347.03 was collected in criminal actions. Working with partner agencies and divisions, the office also collected $2,544,402 in asset forfeiture actions.
“Pandemic or not, there was no safe harbor in South Carolina for those who violated federal law on my watch,” said U.S. Attorney McCoy. “This is because the men and women of this office across our criminal, civil, appellate, and administrative divisions, along with our law enforcement partners, worked tirelessly to pursue justice for the people of South Carolina.”
CORONAVIRUS FRAUD
Almost immediately after assuming office, U.S. Attorney McCoy established the South Carolina COVID Strike Team – consisting of over a dozen federal, state, and local law enforcement agencies – to civilly and criminally investigate coronavirus fraud schemes, hoarding, and price gouging activities. The team has reviewed more than 150 matters to date, identified more than $12 million in pandemic-related fraud losses, and recovered more than $3 million in assets.
In one of these matters, seven individuals were charged with laundering over $750,000 of fraudulently obtained funds, including over $390,000 from a Paycheck Protection Program loan. It marked the 50th PPP-fraud case in the country and identified over $2.1 million in funds which agents seized from twelve different bank accounts.
PUBLIC CORRUPTION AND CORPORATE ACCOUNTABILITY
U.S. Attorney McCoy has focused resources and efforts on prosecuting those who seek to enrich themselves on the backs of South Carolina taxpayers or those who use their positions of trust to engage in criminal activity.
Chief among these cases are those stemming from an exhaustive and joint investigation into issues surrounding the construction of the V.C. Summer Nuclear Station, including admissions in court documents that officials conspired with others to lie about the progress of the V.C. Summer Nuclear Station so the SCANA Corporation (SCANA) could wrongly increase rates on hard-working South Carolinians and qualify for up to $1.4 billion in tax credits.
Specifically, Kevin B. Marsh, former SCANA Chief Executive Officer and former Chairman of its Board of Directors, signed a plea agreement and is scheduled to plead guilty on Wednesday, February 24, in federal court to conspiracy to commit mail and wire fraud. Additionally, Stephen A. Byrne, former Executive Vice President of SCANA, pled guilty in federal court in July 2020 to conspiracy to commit mail and wire fraud under a plea agreement requiring him to cooperate with law enforcement officials. The agreements to date also include a requirement that Dominion Energy will, over time, provide at least $4 billion in South Carolina ratepayer relief.
Additionally, the office’s civil division worked with the Securities and Exchange Commission to settle a lawsuit against SCANA and its subsidiary SCE&G charging them with defrauding investors by making false and misleading statements about the nuclear plant expansion that was ultimately abandoned. The proposed settlement would require SCANA to pay a $25 million penalty and require SCANA and SCE&G to pay $112.5 million in disgorgement plus prejudgment interest.
The office has also brought charges, or obtained convictions, in numerous other public corruption matters, including the arrest of a high-ranking police officer for obstructing justice and operating an illegal gambling ring, the arrest of a county councilman for making material false statements in connection to the attempted acquisition of a firearm, the arrest of two individuals for conspiracy to steal personal protective equipment from the Federal Law Enforcement Training Center where they were employed, and a federal prison sentence for a former police chief for stealing seized funds.
GUNS/DRUGS/VIOLENCE
One of the primary goals of the U.S. Attorney’s Office is to improve the safety and quality of life for the people of South Carolina. During U.S. Attorney McCoy’s tenure, the office specifically and methodically targeted serious gun crimes, drug activity, and violence.
In December 2020, a federal grand jury returned a 147-count superseding indictment against 40 defendants across South Carolina in the largest federal racketeering conspiracy in South Carolina history. The indictment alleges a sprawling criminal enterprise whereby inmates within the South Carolina Department of Corrections orchestrated crimes including murder, kidnapping, firearms distribution, and an international drug operation, often by using contraband cell phones.
The office has also led the way in targeting serious firearms offenses through violent-crime proactive efforts from federal, state, and local agencies. Of the nearly 100 judicial districts across the country, the U.S. Attorney’s Office for the District of South Carolina was among the top ten offices for the number of defendants who received sentences of five years or more for firearms-related charges. Further, more than 50% of the defendants charged with firearms-related offenses in the District of South Carolina received sentences of at least five years or more, putting the office among the top U.S. Attorney’s Offices in the country. Such sentences also show the significant, long-term impact each case can have on the safety of affected communities.
Further, the office also executed numerous takedowns of alleged violent drug gangs after extensive and multi-year investigations targeting the worst types of offenders. This included the arrests of more than 100 defendants across at least seven major takedowns in the last 12 months alone:
- 48 members of three distinct alleged drug trafficking organizations in the Midlands region;
- 23 members of an alleged drug trafficking organization in Horry County;
- 18 members of an alleged drug trafficking organization in the Myrtle Beach area;
- 12 members of an alleged drug trafficking organization in the Lowcountry region; and
- 10 members of an alleged drug trafficking organization in Chesterfield County.
Additionally, 13 members of a large methamphetamine trafficking conspiracy that operated out of Georgia and the Upstate region received a combined sentence of 145 years. Hundreds of firearms and hundreds of kilograms of illegal narcotics were seized because of these operations. These major operations also join the numerous other arrests and convictions of alleged violent drug dealers, including lengthy sentences for individuals who sold drugs resulting in deaths, and federal charges against two men for their roles in a drug conspiracy and the murder of a postal employee while on her mail route.
HEALTHCARE FRAUD
In light of the pandemic, healthcare fraud was a major focus for U.S. Attorney McCoy. The office handled numerous healthcare fraud matters in both the criminal and civil divisions that resulted in millions of dollars in recovered federal funds.
U.S. Attorney McCoy led the office as it worked with the U.S. Attorney’s Office for the Southern District of Georgia to federally charge more than 40 individuals for their roles in in Operation Rubber Stamp, an expansive health care fraud scheme across South Carolina and Georgia resulting in hundreds of millions of dollars in fraudulent billings. The charges marked the third in a nationwide series of telemedicine fraud prosecutions, which began through investigative efforts out of the District of South Carolina. Working cooperatively with other federal districts and the Department of Justice’s Health Care Fraud Strike Force, cases have been brought in over 20 Districts across the country, resulting in over 175 individuals being charged and/or convicted, with over a billion dollars in restitution.
Additionally, the Centers for Medicare and Medicaid Services/Center for Program Integrity separately took the largest number of adverse administrative actions resulting from a single administrative health care fraud investigative initiative in history in revoking the Medicare billing privileges of over 250 additional medical professionals for their involvement in telemedicine schemes. The District of South Carolina alone has ensured that millions of dollars have been returned, or will be returned, to these essential health care programs.
HUMAN TRAFFICKING AND CHILD EXPLOITATION
Having fought against human trafficking and child exploitation as a member of the South Carolina House of Representatives, U.S. Attorney McCoy has substantially built upon the office’s work to fight child exploitation and human trafficking. Under U.S. Attorney McCoy, the office has prosecuted some 50 defendants in trafficking or child exploitation cases and assisted more than 100 victims in the past twelve months alone. The cases include a nine-victim trafficking case out of Columbia, a multistate case involving the exploitation of a minor over the internet, and allegations against a husband and wife out of Anderson for child sex trafficking.
For the first time in the District of South Carolina, under U.S. Attorney McCoy’s leadership, the office prosecuted the patrons of human trafficking organizations along with the traffickers themselves.
These cases have required a proactive approach, and thus the office has also worked extensively with law enforcement partners to help identify the signs of human trafficking and child exploitation. Further, the office’s victim-witness advocates have worked extensively with the victims in these cases, as they do with victims of all federal crimes. To assist in these efforts, the State of South Carolina received $500,000 in Department of Justice grants to provide safe, stable housing and appropriate services to victims of human trafficking. These funds were in addition to the more than $33 million in Department of Justice grants to assist victims in the District of South Carolina under U.S. Attorney McCoy’s leadership.
PROTECTING CONSTITUTIONAL RIGHTS
U.S. Attorney McCoy has ensured that the office continues to protect the rights of all South Carolinians. This includes resolving several civil matters alleging that citizens of South Carolina have had their rights violated in areas ranging from education to housing. During the protests last spring across the country and after the recent protests in Washington, D.C., U.S. Attorney McCoy made clear that his office would always preserve First Amendment rights to free speech and assembly while also protecting South Carolina communities from violence and destruction and assisting in the prosecution of those who disregard the rule of law. In September 2020, the office charged several individuals with federal charges for participating in actions including arson, inciting riots, and other civil disorder in Columbia and Charleston on May 30 and 31, 2020. The office has also made substantial efforts toward identifying, and assisting in the prosecution of, those who invaded the U.S. Capitol on January 6, 2021.
SUPPORTING LAW ENFORCEMENT
As U.S. Attorney McCoy noted in his resignation letter, his success as U.S. Attorney is directly attributable to his office’s extensive work with federal, state, and local partners. Across the state, South Carolina has seen firsthand the exceptional work and bravery of its law enforcement community, and unfortunately witnessed several tragedies. Since U.S. Attorney McCoy took office, more than a dozen law enforcement officers have made the ultimate sacrifice and several others have been wounded in the line of duty. U.S. Attorney McCoy has remained committed to doing everything in his office’s power to ensure its law enforcement partners have the best training, resources, and support – including mental health support – to keep them safe.
In pursuit of those efforts, the office has worked the Department of Justice to make more than $16 million available to law enforcement agencies and public safety programs in South Carolina. This includes a $4.5 million grant to fight and prevent violent crime, $8 million to hire 63 additional full-time law enforcement professionals, and $2 million in grants to fund crime laboratories and other forensic needs.
Many of the office’s law enforcement partners expressed their gratitude for the work during U.S. Attorney McCoy’s tenure.
“Peter McCoy has been a committed and selfless ambassador for justice and public service,” said Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Vince Pallozzi. “Peter’s been a strong supporter of law enforcement and public safety in South Carolina and has been a valuable partner with ATF in the fight against violent crime.”
“The investigative work of the U.S. Secret Service would not be successful without the support of the U.S. Attorney’s office,” said Special Agent in Charge John Hirt, U.S. Secret Service Columbia Field Office. “U.S. Attorney Peter McCoy has been a dedicated partner to the South Carolina district during one of the most difficult times in our history, and we are thankful for his dedication and support.”
“I am happy to have partnered with U.S. Attorney McCoy, and during his tenure we have investigated and prosecuted numerous significant cases to include child exploitation, human trafficking, narcotics and money laundering,” said Special Agent in Charge Ronnie Martinez, who oversees Homeland Security Investigations (HSI) operations in North and South Carolina. ”His leadership and tireless efforts to support our operations across all case disciplines has been exceptional.”
“Peter McCoy and the United States Attorney’s Office under his leadership has been a tremendous partner of the FBI,” said Susan Ferensic, Federal Bureau of Investigation Special Agent in Charge. “We wish him well on the next chapter of his professional life.”
“Peter McCoy and I met a decade ago when he was employed as an Assistant Solicitor,” said North Charleston Police Chief Reggie Burgess. “Peter rode along with our detectives, narcotics and SWAT on a weekly basis; and, whenever we had community meetings, he would be in attendance to witness police and community engagements. The North Charleston Police Department will truly miss Peter McCoy’s leadership as U.S. Attorney, and we thank Peter for a job well done.”
“I’ve known U.S. Attorney McCoy since before he was appointed U.S. Attorney,” said Richland County Sheriff Leon Lott. “He has always been very supportive of law enforcement. Most notable was the support he exhibited throughout the riots in Columbia last year, calling to offer his support and that of his office. My hope is that the incoming U.S. Attorney is as good and supportive to law enforcement.”
ABOUT PETER MCCOY
A Charleston resident, McCoy graduated from Hampden-Sydney College before receiving his Juris Doctorate from Regent University Law School. His work as a criminal prosecutor in the Ninth Circuit Solicitor’s Office spanned five years and included handling thousands of cases involving violence, guns, and drugs.
As a State Representative, McCoy was the lead sponsor of legislation requiring the mandatory reporting of child sexual abuse, as well as legislation establishing a mandatory minimum sentence for anyone who commits a crime while out on bond. Additionally, McCoy’s work in the legislature including passing statutes that ensure violent repeat criminal offenders do not remain out on bond if they continue to commit crimes.
U.S. Attorney McCoy thanked Senators Lindsey Graham and Tim Scott for their unwavering support during the appointment process, nomination, and confirmation.
“South Carolina is truly blessed with the leadership of our two United States Senators, as well as those serving our great state in the U.S. Attorney’s Office,” said U.S. Attorney McCoy. “I depart the office confident that my successor will inherit an incredibly dedicated and talented team and be ready to hit the ground running.”
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mccoy_resignation_letter_signed.pdfFormer SCANA CEO to Plead Guilty Tomorrow to Conspiracy to Commit Mail and Wire FraudRead the Press Release
Columbia, South Carolina --- United States Attorney Peter M. McCoy, Jr. announced that Kevin B. Marsh, former SCANA Corporation (SCANA) Chief Executive Officer and former Chairman of its Board of Directors, is scheduled to plead guilty tomorrow – Wednesday, February 24 – 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.
U.S. Attorney McCoy will be available for media questions after the hearing.
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Myrtle Beach Convicted Felon Sentenced to Nearly Three Years in Federal Prison after Possessing Sawed-off ShotgunRead the Press Release
Florence, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that Kevin Richard Dextraze, 32, of Myrtle Beach, was sentenced to nearly three years in federal prison after pleading guilty to possessing a firearm as a convicted felon.
Evidence presented to the court showed that on February 22, 2019, the Myrtle Beach Police Department received a complaint about a man with a shotgun. Officers located the man, Dextraze; and a search incident to arrest revealed a 20 gauge sawed-off shotgun. Dextraze is prohibited from possessing a firearm based on his prior conviction for second degree burglary.
United States District Judge Donald C. Coggins, Jr. sentenced Dextraze to 34 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. Assistant United States Attorney Lauren Hummel prosecuted the case.
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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Mullins Man Sentenced to Ten Years in Federal Prison for Distributing CocaineRead the Press Release
Florence, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that Gregory Lavon McCollum, 46, of Mullins, was sentenced to ten years in federal prison after pleading guilty to possessing with intent to distribute cocaine and distributing cocaine.
Evidence presented to the court showed that on February 20, 2019, agents from the Marion County Combined Drug Unit used a confidential informant to make a controlled drug purchase from McCollum. After being provided with police funds to make the purchase, the informant traveled to a location in Mullins and purchased a powder substance from McCollum. A forensic scientist later confirmed that the substance was cocaine.
United States District Judge Donald C. Coggins, Jr. sentenced McCollum to 120 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 Marion County Combined Drug Unit. Assistant United States Attorney Lauren Hummel prosecuted the case.
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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Myrtle Beach Man Sentenced to Nearly Four Years in Federal Prison for Distributing HeroinRead the Press Release
Florence, South Carolina --- United States Attorney Peter M. McCoy, Jr. announced today that Michael Quantrell Barr, 30, of Myrtle Beach, was sentenced to nearly four years in federal prison after pleading guilty to possessing with intent to distribute heroin and distributing heroin.
Evidence presented to the court showed that in June and July of 2019, the Myrtle Beach Police Department Street Crimes Unit used a confidential informant to make three controlled drug purchases from Barr. In each purchase, an informant exchanged police funds for what a forensic scientist later confirmed to be heroin.
United States District Judge Donald C. Coggins, Jr. sentenced Barr to 46 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. Assistant United States Attorney Lauren Hummel prosecuted the case.
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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U.S. Attorney Peter McCoy Warns of Romance Scams OnlineRead the Press Release
Charleston, South Carolina – With Valentine’s Day just days away, United States Attorney Peter M. McCoy, Jr. warns South Carolinians to be aware of romance scam fraudsters utilizing dating apps, social media, and the internet to steal money from unsuspected victims.
“Scammers never let up on their criminal efforts, not even on Valentine’s Day,” said U.S. Attorney McCoy. “Be aware: it is not true love if sweet-talking chatter quickly turns into requests for money.”
U.S. Attorney McCoy offers some signs to look for related to a romance scam online.
“It is likely a scam if the person you have just connected with online and have never met in person professes love quickly,” said U.S. Attorney McCoy. “Also be wary of someone claiming to be overseas for business or military service, someone asking for money and quickly attempting to lure you off the dating site, someone who plans to visit but can’t because of an emergency, and someone claiming to need money – for emergencies, hospital bills, or travel.”
The Federal Trade Commission (FTC) reports that there were $304 million in reported loses from romance scams in 2020. In 2019, the FTC reports over 25,000 consumers filed a report with the FTC about romance scams and reported losses of $201 million to romance scams. Additional reports show that, over a three-year period, losses to romance scams were higher than any other scam reported to the FTC.
“The crimes involving romance scams are increasing at an alarming rate,” warns U.S. Attorney McCoy. “From 2015 to 2020, the total amount of money lost by victims increased from $33 million to $304 million. This clearly isn’t going away, and the public should take precautions accordingly.”
U.S. Attorney McCoy urges South Carolinians to:
- Ensure the dating site does not sell personal data to third parties or advertisers.
- Do a reverse image search of the person’s profile picture. If it is associated with another name or with details that do not match up, it is a scam.
- Search online for the type of job the person claims to have and check to see if others have reported romance scams based on that job. For example, search for “oil rig scammer” or “overseas military scammer.”
- Do not let scammers rush you. Slow down and talk to someone you trust before taking any quick action on requests made by someone you have not met in person.
- Do not send intimate photos to an online acquaintance, as they could be used to extort you later.
- Never transfer money from your bank account, never buy gift cards, and never wire money to an online love interest.
- Immediately contact your bank if you think you’ve sent money to a scammer.
- If you have become a victim, do not be too ashamed or afraid to report it. Report your experience to the FTC by phone to 1-877-382-4357 or online at www.ftc.gov/complaint. And report it to the Federal Bureau of Investigation’s Internet Crime Complaint Center at www.ic3.gov.
U.S. Attorney McCoy stressed his office’s commitment to stopping the criminals before more can become victims of their crimes.
“Along with law enforcement partners, the United States Attorney’s Office will work to identify, investigate, and prosecute to the fullest extent of the law those who seek to scam and steal from their neighbors,” concluded McCoy.
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U.S. Attorney Peter McCoy Seeks Public’s Help to Fight Human TraffickingRead the Press Release
Charleston, South Carolina – Following last month’s recognition as National Slavery and Human Trafficking Prevention Month, United States Attorney Peter McCoy is urging the public to continue raising awareness about human trafficking and support efforts to fight modern-day slavery in South Carolina.
“Ending the horrendous crime of human trafficking will take an unwavering and unified commitment of law enforcement and the public,” said U.S. Attorney McCoy. “I call on the public to understand the signs, learn how and whom to report to, and stand firm with law enforcement to ensure justice is served for the victims of both sex trafficking and labor trafficking.”
Federal law defines sex trafficking as the recruitment, harboring, transportation, provision, obtaining, patronizing, or soliciting of a person for the purposes of a commercial sex act, in which the commercial act is induced by force, fraud, or coercion, or in which the person induced to perform such an act is under that age of 18 years old. Federal law defines labor trafficking as the recruitment, harboring, transportation, provision, or obtaining of a person for labor or services, through the use of force, fraud, or coercion for the purposes of subjection to involuntary servitude, peonage, debt bondage, or slavery.
While victims of human trafficking come from every area, age, gender, ethnicity, education, and socio-economic background – U.S. Attorney McCoy warns that traffickers seek out people who are vulnerable to the crime.
“Those with substance abuse problems, those with caregivers who have substance abuse problems, runaways, those who experienced childhood abuse or neglect, those with disabilities, those with unstable living and financial situations, and victims of domestic violence unfortunately have a higher chance of falling victim to sex and labor trafficking,” said U.S. Attorney McCoy.
U.S. Attorney McCoy asks the public to be alert for signs of potential trafficking.
“It is common for a trafficker to lure a victim in with stories that are simply too good to be true,” said U.S. Attorney McCoy. “Look out for stories of an instant ‘everlasting love’ or a promise of an incredible job opportunity far away but lacking any specific details of the job. Such dreams of a brighter future could quickly turn into a nightmare that is often extremely difficult to get out of.”
Should one witness these signs or have knowledge of human trafficking, U.S. Attorney McCoy implores to immediately call 911.
“If you know a victim is being trafficking or have a gut feeling that something just doesn’t add up, contact law enforcement immediately,” said U.S. Attorney McCoy. “In addition to calling 911, I ask that you also report suspicious activity to the National Human Trafficking Hotline at 1-888-373-7888.”
U.S. Attorney McCoy encourages the public to fully educate themselves on human trafficking at the U.S. Department of Health and Human Services’ Office on Trafficking in Persons website (https://www.acf.hhs.gov/otip/about/what-human-trafficking).
“As United States Attorney for the District of South Carolina, I am unwavering in my commitment to rescue and support victims of human trafficking, while seeking the harshest punishments allowable by law for human traffickers,” said U.S. Attorney McCoy. “And our office is committed to continue ensuring fellow law enforcement agencies have the latest and best training on the methods of investigating and prosecuting federal human trafficking cases. But, let me be clear, the public’s support is a critical component to the success of law enforcement’s work to stop human trafficking in South Carolina.”
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Former SCANA CEO to Plead Guilty to Conspiracy to Commit Mail and Wire Fraud on February 24Read the Press Release
Columbia, South Carolina --- United States Attorney Peter M. McCoy, Jr. announced today that Kevin B. Marsh, former SCANA Corporation (SCANA) Chief Executive Officer and former Chairman of its Board of Directors, is scheduled to plead guilty on Wednesday, February 24 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.
U.S. Attorney McCoy will be available for media questions after the hearing.
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Gilbert Man Charged with Threatening Former Assistant U.S. Attorney, Her Family and AssociatesRead the Press Release
Columbia, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that James Patrick Giannakos, Jr. of Gilbert has been charged with threatening a former Assistant United States Attorney, her family, and associates. According to documents filed with the court, the threats came after multiple media platforms reported that the Government used information from Enrique Tarrio, the leader of the Proud Boys, to prosecute approximately 13 individuals.
According to information provided to the court, Giannakos allegedly left a message on the former Assistant United States Attorney’s voicemail stating in part, “if anything happens to Mr. Enrique Tarrio, the same thing will happen to you and your family . . . If anything happens to him, I promise you and your associates will pay for it.”
The day after the voicemail was reported to the Miami office for the Federal Bureau of Investigation (FBI), six additional threatening voicemails were left by the same telephone number on the answering machines of several offices of the firm that the former Assistant U.S. Attorney now works. Documents filed with the court allege that parts of those voicemails included, “If anything happens to Mr. Tarrio or his family, the same thing will happen to you and your associates. Be safe.” Another message allegedly included, “if anything happens to Enrique Tarrio . . . [the former Assistant United States Attorney’s] family is in danger and so are you.”
“Those who seek violent retribution on prosecutors, former prosecutors, other law enforcement officials and individuals who assist law enforcement will be held accountable,” said U.S. Attorney McCoy.
Giannakos is charged with transmitting in interstate commerce any communication containing a threat to injure the person of another. The case is being investigated by the FBI and prosecuted by Assistant United States Attorneys Jim May and Elliott Daniels.
The United States Attorney stated all charges in this case are merely accusations at this stage, and the defendant is presumed innocent unless and until proven guilty.
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affidavit_in_support_of_criminal_complaint.pdfFormer Federal Grand Juror Sentenced after Pleading Guilty to Obstruction of JusticeRead the Press Release
Columbia, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that Alicia Renee Coleman, 51, of Rock Hill, was sentenced in federal court after pleading guilty last fall to a felony charge of obstruction of justice.
“The integrity of our grand jury process is vital to our mission of protecting the people of South Carolina and upholding the rule of law,” said U.S. Attorney McCoy. “As this case makes clear, if you violate the secrecy of grand jury proceedings, you will be prosecuted.”
Evidence presented to the court showed that in early June 2018, Coleman communicated secret federal grand jury information concerning an indictment and upcoming arrests in case involving a drug trafficking organization in the Rock Hill and Charlotte regions, United States v. Hemphill, et al.
Coleman learned the information in her capacity while serving as a federal grand juror and communicated the information to a family member in violation of a court order. Law enforcement quickly learned of the leak, which had made its way to targets of the investigation, and as a result changed the date of the upcoming takedown in the case. Investigators were able to track down the source of the leak and thereafter, Coleman was relieved of her duties as a federal grand juror and admitted to sharing the information with a family member.
United States District Court Judge Mary Geiger Lewis sentenced Coleman, who had no prior record, to a 3-year term of probation. The charge against Coleman was prosecuted by Assistant United States Attorney Stacey D. Haynes, after an investigation by the Federal Bureau of Investigation (FBI).
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Food Suppliers to Pay $250,000 to Resolve Claims of Diluting Spices Sold to PrisonsRead the Press Release
Columbia, South Carolina---- United States Attorney Peter M. McCoy, Jr. announced today that his office has resolved claims that FlavorPros, LLC; America’s Best Packaging, LLC; Artisan Foods, LLC; Charlene R. Brach; Richard B. Brach; and Richard C. Brach submitted false claims to the Bureau of Prisons (BOP) between October 1, 2011, and December 31, 2018, for food product, particularly spices, that contained significant quantities of filler agents. The food suppliers will pay $250,000 to resolve the claims.
In its complaint, filed November 1, 2019, the United States alleged that FlavorPros, LLC, contracted with the BOP to supply spices that were required by the contract to be in pure condition with no additives, extenders, foreign matter, or flow agents. The United States alleged that FlavorPros sold spices to the BOP that were substantially comprised of filler agent for economic gain. Thus, it was alleged that FlavorPros and its principal, Charlene Brach, submitted false claims for payment by the BOP for the spices that did not meet the purity requirements of the contract. The United States also alleged that Charlene and Richard Brach created Artisan Foods to circumvent administrative suspension of FlavorPros and filed a false claim to the BOP for substandard food product.
As part of the settlement reached today, FlavorPros, America’s Best Packaging, and Artisan Foods will pay the United States $170,000. For their individual roles in the fraud, Charlene Brach will pay the United States $60,000; and Richard B. Brach and Richard C. Brach will each pay the United States $10,000.
“All federal contractors must use tax dollars responsibly and for their intended purpose,” said U.S. Attorney McCoy. “Today’s resolution illustrates the Department of Justice’s emphasis on combating fraud against the government. If a federal contractor fraudulently obtains tax dollars paid by hard-working Americans, this office will act.”
“Contractors that are selected and paid by the government to supply food to inmates are expected to comply with contractual and other standards. When they provide adulterated products, as the defendants allegedly did here, the government is cheated and the health and safety of inmates are placed at risk,” said Kenneth R. Dieffenbach, Special Agent in Charge of the Department of Justice Office of the Inspector General (DOJ OIG) Fraud Detection Office. “The DOJ OIG is committed to rooting out this type of fraud.”
The case was investigated by the U.S. Attorney’s Office for the District of South Carolina and the U.S. Department of Justice Office of Inspector General. The civil settlement was reached for the U.S. Attorney’s Office by Assistant United States Attorneys Beth Warren and Stan Ragsdale, both of the Columbia office.
The claims resolved by this settlement are allegations only. There has been no determination of liability, and the food suppliers did not admit liability.
Anyone who suspects fraud against the Department of Justice or its components should report it at https://oig.justice.gov/hotline
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Two Aiken Residents Each Sentenced to Eight Years in Federal Prison on Meth ChargesRead the Press Release
Columbia, South Carolina---- United States Attorney Peter M. McCoy, Jr. announced today that Casey C. Kohler, 36, and Anna E. Mason, 28, both of Aiken County, were each sentenced to over eight years in federal prison for conspiracy to possess with the intent to distribute 50 grams or more of methamphetamine.
Evidence presented in court established that the Drug Enforcement Administration (DEA) initiated an investigation into the narcotics distribution activities of Kenneth Evans and Eddie Brockington, co-defendants in the case. Through controlled purchases and other investigative techniques, agents learned that members of the conspiracy purchased and distributed large amounts of methamphetamine and heroin for Evans and Brockington. Some of the individuals charged were responsible for transporting multi-kilogram amounts of methamphetamine and heroin into South Carolina and then distributing the drugs throughout the state. Both Kohler and Mason were involved in purchasing and distributing methamphetamine in the Aiken County area for Evans. Mason was also involved in collecting money owed on drug debts and forwarding the money to others on Evans’s behalf.
United States District Judge J. Michelle Childs sentenced Kohler to 100 months in federal prison, followed by eight years of supervised release. Mason was also sentenced to 100 months in federal prison, followed by eight years of supervised release. There is no parole in the federal system.
The case was investigated by agents of the DEA and Aiken County Sheriff's Office. Assistant United States Attorney William K. Witherspoon prosecuted the case.
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Rock Hill Man Sentenced to Twelve Years in Federal Prison for Involvement in Fentanyl Pill CaseRead the Press Release
Columbia, South Carolina---- United States Attorney Peter M. McCoy, Jr. announced today that Fate Thomas McClurkin, Jr., 30, of Rock Hill, was sentenced to twelve years in federal prison for conspiracy to possess with the intent to distribute fentanyl and cocaine, as well as conspiracy to commit money laundering.
Evidence presented in court established that, through an investigation into Darryl Hemphill and Hemphill’s drug trafficking organization, federal agents learned that McClurkin was responsible for selling drugs obtained from Hemphill, including cocaine and clandestinely made pills that contained fentanyl. It was further known that McClurkin had a close relationship with Hemphill related to trafficking voluminous amounts of drugs in the Rock Hill and Charlotte regions. As a co-conspirator in Hemphill’s drug trafficking organization, McClurkin was fully aware the pills purchased and sold by him were fake Roxicodone pills that were made with fentanyl.
On May 25, 2018, agents determined that Hemphill coordinated a drug deal with McClurkin for 13,000 fentanyl pills. Evidence in the case also showed that, after completing this transaction, McClurkin purchased 25,000 more fentanyl-based pills from Hemphill during this conspiracy.
United States District Judge Mary Geiger Lewis sentenced McClurkin to 144 months in federal prison, to be followed by an eight-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by agents of the Federal Bureau of Investigation (FBI), Drug Enforcement Administration (DEA), Internal Revenue Service (IRS), and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant United States Attorneys William K. Witherspoon, T. DeWayne Pearson, and Elliot Daniels, all of the Columbia office, prosecuted the case.
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Richard Gilbert Pleads Guilty to Murder-for-Hire Plot against Assistant United States AttorneyRead the Press Release
Columbia, South Carolina----United States Attorney Peter M. McCoy, Jr., announced today that a federal judge has accepted a guilty plea by Federal Bureau of Prisons (BOP) inmate Richard Robert Gilbert for a murder-for-hire and retaliation plot against an Assistant United States Attorney and a confidential informant. The plea calls for Gilbert to serve 262 months, consecutive to the 130-month sentence for which he was already in federal prison.
“The U.S. Attorney’s Office will continue to hold accountable those who seek violent retribution against law enforcement officers and those who assist the government,” said U.S. Attorney McCoy. “We stand united with our law enforcement partners. We are undeterred by bad actors and will ensure the rule of law is upheld.”
Evidence presented in the court showed that Gilbert was serving time at a federal prison in Edgefield for trafficking methamphetamine in Bowling Green, Kentucky, when he sought to hire a hitman to kill the federal prosecutor and a key witness from his Kentucky case. Using a contraband cell phone in prison, Gilbert communicated with an undercover task force officer with the Federal Bureau of Investigation (FBI) who was posing as a hitman. Following multiple recorded phone calls, Gilbert sent the undercover officer a $2,000 check from his prison canteen account as a down payment for the retaliatory murder-for-hire. Masking the true purpose of this payment, Gilbert attempted to mislead BOP officials by misrepresenting the payment as being for an “investment firm.”
Evidence presented also showed that Gilbert drew maps of where he believed the witness from Kentucky lived and provided directions to the undercover officer, posing as the hitman, on how to avoid detection by nearby surveillance cameras. The evidence also showed how Gilbert planned to use income from two of his rental properties to facilitate the attempted murder-for-hire and retaliation plot. He also planned to use the value of his ownership stake in other land to pay for the murder of the federal prosecutor from Kentucky.
The case was investigated by the FBI and the BOP Special Investigative Services Team and prosecuted by Assistant United States Attorneys Jim May, Justin Holloway, and Will Jordan.
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Lexington Woman Sentenced to Nine Years in Federal Prison on Firearm and Methamphetamine ChargesRead the Press Release
Columbia, South Carolina -- United States Attorney Peter M. McCoy, Jr. announced today that Natalie Michelle Quarles, 45, of Lexington, was sentenced to nine years in federal prison after pleading guilty to being a felon in possession of a firearm and ammunition and possession with intent to distribute methamphetamine. The charges followed a traffic stop in which Quarles possessed a loaded firearm; approximately $1,400.00 in cash; marijuana, oxycodone and acetaminophen pills; hydrocodone and acetaminophen pills; amphetamine pills; and methamphetamine.
Evidence presented in court established that on July 3, 2018, a deputy with the Lexington County Sheriff’s Department initiated a traffic stop on a vehicle for failure to maintain its lane. Quarles was the driver and sole occupant of the vehicle. When the deputy asked for her driver’s license, Quarles admitted that her license was under suspension and that she had been deemed a habitual traffic offender by the South Carolina Department of Motor Vehicles. The deputy verified the information through dispatch. While placing her under arrest for driving under suspension, Quarles stated that she had a gun as well as some marijuana and pills in the vehicle. In the vehicle, the deputy located a loaded firearm; approximately $1,400.00 in cash; marijuana, oxycodone and acetaminophen pills; hydrocodone and acetaminophen pills; amphetamine pills; and methamphetamine. Quarles admitted to the deputy that she knew she was prohibited from possessing the firearm.
Quarles is prohibited from possessing firearms and ammunition based upon her prior state convictions. Specifically, in 2008, she received concurrent sentences for the following convictions: five years for assault and battery of a high and aggravated nature; four years for grand larceny; one year for receiving stolen goods greater than $5000; two years for burglary second degree non-violent; and two years for strong arm robbery. Following her release from prison, she was convicted in 2014 of false information and driving under suspension. In 2015, she was convicted of possession of methamphetamine and shoplifting, sentenced to 18 months, and placed on state probation for 18 months. Approximately one year later, Quarles violated her probation and it was revoked.
United States District Judge Mary Geiger Lewis sentenced Quarles to 108 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Lexington County Sheriff’s Department. Special Assistant United States Attorney Casey Rankin Smith of the 11th Judicial Circuit Solicitor’s Office prosecuted the case.
The 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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Columbia Man Sentenced to Year and Half in Federal Prison for Failure to Pay Employment Withholding TaxesRead the Press Release
Columbia, South Carolina ---- United States Attorney Peter M. McCoy, Jr. announced that Rafael Salas, Jr., 52, of Columbia, was sentenced to a year and a half in federal prison after pleading guilty to failing to pay to the government taxes he withheld from his employees’ paychecks. Salas spent the funds for personal expenses and entertainment, including on a boat and at a strip club.
Evidence presented in court established that, from January 2014 through August 2016, Salas owned and operated Moonshiner's Patio Bar and Grill in Lexington, and employed approximately 20 employees during each tax period. While failing to file Moonshiner’s quarterly tax returns and failing to fully pay the company’s employment taxes, Salas withheld trust fund taxes from his employees’ wages. Salas used the withholdings to pay personal expenses including $36,000 for his personal dwelling, $11,000 for a boat and trailer, and expenses of roughly $10,000 at a local strip club.
Salas was also on probation for a 2016 federal conviction for conspiracy to introduce misbranded drugs into interstate commerce at the time of this offense.
“I am thankful for the partnership of the IRS and our U.S. Attorney’s Office to see justice on this case,” said U.S. Attorney McCoy. “We stand ready to continue protecting taxpayers from criminal activity.”
"Employers have a legal obligation to withhold and pay the appropriate amount of taxes for their employees," said Matthew D. Line, Special Agent in Charge, IRS Criminal Investigation, Charlotte Field Office. "The defendant’s federal prison sentencing is clear recognition of the serious consequences awaiting those who skirt this obligation."
United States District Judge Mary G. Lewis sentenced Salas to 18 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
This case was investigated by the Internal Revenue Service (IRS). Assistant United States Attorney T. DeWayne Pearson of the Columbia office prosecuted the case.
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U.S. Attorney Peter McCoy Launches Campaign to Thank Law Enforcement OfficersRead the Press Release
Columbia, South Carolina --- With the national Law Enforcement Appreciation Day on Saturday, U.S. Attorney Peter McCoy announced today the launch of his office’s “Thank a Law Enforcement Officer” campaign. The campaign encourages the public to send thank you notes to the law enforcement offices in their area.
“Each and every day, our law enforcement officers put on their uniforms and leave the safety of their homes and the comfort of their families to protect and serve our communities,” said U.S. Attorney McCoy. “Some days on the job, they are put in extremely dangerous situations; and, unfortunately, some give their lives to protect ours. This campaign ensures our law enforcement officers know how much we appreciate their sacrifice. We stand with them as they work to make our communities safer.”
Due to COVID-19, U.S. Attorney McCoy encourages the public to mail the thank you notes to the law enforcement offices, instead of dropping them off in person. Additionally, the Law Enforcement Coordinator for the U.S. Attorney’s Office, Lori Vernali, can help distribute the thank you notes.
“The U.S. Attorney’s Office cannot complete the work it does without the support of our law enforcement partners,” said Vernali. “Should the public have any trouble determining the offices that have jurisdiction in their area, we are here to help deliver the messages to the appropriate agencies for them.”
Those wishing to participate should send a note to any law enforcement agency in their area or to the following for delivery by the U.S. Attorney’s Office:
United States Attorney’s Office
Attn: Law Enforcement Coordinator
1441 Main Street, Suite 500
Columbia, SC 29201
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Plea Date to be Rescheduled for Former SCANA CEORead the Press Release
Columbia, South Carolina --- United States Attorney Peter M. McCoy, Jr. announced today that, due to logistics, the plea by Kevin B. Marsh, former SCANA Corporation (SCANA) Chief Executive Officer and former Chairman of its Board of Directors, that was originally set for Tuesday, December 29 will be rescheduled. The U.S. Attorney’s Office will announce the rescheduled plea date, when it is available.
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U.S. Attorney’s Office in South Carolina Collects over $56 Million for U.S. Taxpayers in 2020Read the Press Release
Charleston, South Carolina --- U.S. Attorney Peter M. McCoy, Jr. announced today that the U.S. Attorney’s Office for the District of South Carolina collected over $56 million in criminal, civil and asset forfeiture actions in Fiscal Year (FY) 2020.
The office collected $53,839,927.39 in criminal and civil actions in FY 2020. Of this amount, $49,000,580.36 was collected in civil actions and $4,839,347.03 was collected in criminal actions.
Working with partner agencies and divisions, the office also collected $2,544,402 in asset forfeiture actions in FY 2020. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
“I am extremely proud of the hard work of the consummate professionals in our U.S. Attorney’s Office,” said U.S. Attorney McCoy. “From our team’s work, we have been able to collect over $56 million this year – money that allows us to protect South Carolinians, seek justice for victims of crime, and seek harsh punishment for criminals.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
As a whole, the Justice Department collected more than $15.9 billion in civil and criminal actions in FY 2020. This amount represents more than five times the approximately $3.2 billion appropriated budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period. The total includes all monies collected through Justice Department-led enforcement actions and negotiated civil settlements. It includes more than $13.5 billion in payments made directly to the Justice Department, and more than $2.4 billion in indirect payments made to other federal agencies, states and other designated recipients.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former SCANA CEO to Plead Guilty to Conspiracy to Commit Mail and Wire Fraud on TuesdayRead the Press Release
Columbia, South Carolina --- United States Attorney Peter M. McCoy, Jr. announced today that Kevin B. Marsh, former SCANA Corporation (SCANA) Chief Executive Officer and former Chairman of its Board of Directors, is scheduled to plead guilty on Tuesday, December 29 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.
Following the plea in federal court, Marsh is scheduled for a hearing on a state charge at 12:00 pm at the Richland County Judicial Center, 1701 Main Street, Columbia, before the Honorable J. Mark Hayes, II.
U.S. Attorney McCoy and South Carolina Attorney General Alan Wilson will be available for media questions as each hearing concludes.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
U.S. Attorney Peter McCoy Urges the Public to be Wary of Coronavirus Vaccine ScamsRead the Press Release
Charleston, South Carolina --- With the Coronavirus vaccine being distributed across the country, United States Attorney Peter M. McCoy, Jr. warns South Carolinians to be on high alert for fraudsters seeking to take advantage of the pandemic.
“Having already seen supply scams, provider scams, economic impact scams, phishing scams, and even charity scams related to COVID-19 across the country, every South Carolinian should be extra cautious for the possibility of phony websites and other outreach claiming early access to the vaccine,” said U.S. Attorney McCoy. “Everyone, particularly seniors and their caretakers, should be on high alert for fraudsters seeking to take advantage of their most vulnerable neighbors.”
At the beginning of December, it was reported that the Federal Trade Commission (FTC) had already received over 250,000 COVID-19 related consumer complaints, with two-thirds involving fraud or identity theft.
“Be it through robocalls, texts, emails or other means of communication, the potential for continued Coronavirus scams could be as rampant as the disease itself,” U.S. Attorney McCoy continued. “Not only do these criminals victimize the recipient of the scam, they can also cast doubt for many others to trust the legitimate work being done by honest, reliable providers.”
U.S. Attorney McCoy wants South Carolinians to know that the best defense to Coronavirus scams is vigilance, knowing criminals have multiple methods to try to take advantage of others. He urges all to:
- Know that you cannot pay to put your name on a list to get the vaccine or to get early access to the vaccine.
- Know that no legitimate vaccine distribution site or heath care payer, like a private insurance company, will call asking for your Social Security, banking, or credit card numbers to sign you up to get the vaccine.
- Beware of providers offering other products, treatments, or medicines to prevent the virus. Check with your health care provider before paying for or receiving any COVID-19-related treatment.
- Never send money or give out your Social Security number, date of birth, bank account numbers, and credit card numbers and expiration dates to unfamiliar companies or unknown persons.
- Know that the IRS will never ask for your social or bank information over the phone.
- If you have become a victim, do not be too ashamed or afraid to report it. Contact the National Center for Disaster Fraud Hotline at 1-866-720-5721 or online at www.justice.gov/coronavirus.
U.S. Attorney McCoy stressed his office’s commitment to stopping the criminals before more can become victims of their crimes.
“Along with law enforcement partners, the United States Attorney’s Office will work to identify, investigate, and prosecute to the fullest extent of the law those who seek to defraud their neighbors during this pandemic,” concluded McCoy.
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U.S. Attorney McCoy is currently discussing the U.S. Attorney’s Office’s efforts to combat Coronavirus-related frauds and schemes with media members. To schedule an interview with U.S. Attorney McCoy, please call the office’s Public Affairs Specialist, Michael Mule’ at 843-327-0882 or email him at [email protected].
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
40 Charged in Largest Federal Racketeering Conspiracy in South Carolina HistoryRead the Press Release
A federal grand jury has returned a 147-count superseding indictment against 40 defendants across South Carolina in the largest federal racketeering conspiracy in South Carolina history.
The indictment alleges a sprawling criminal enterprise whereby inmates with the South Carolina Department of Corrections (SCDC), often through the use of contraband cell phones, orchestrated murder, kidnapping, firearms distribution, and an international drug operation.
The grand jury returned an indictment charging the defendants with conspiracy under the Racketeer Influenced and Corrupt Organizations (RICO) Act, and several charges under the Violent Crimes in Aid of Racketeering (VICAR) statute. Of the 40 defendants, 24 defendants were charged in the initial indictment in this case for conduct related to their alleged roles in the drug trafficking organization.
“The defendants allegedly operated a violent and lucrative drug enterprise on behalf of the Insane Gangster Disciples while incarcerated,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “The department is committed to investigating and prosecuting gang-related crimes no matter where they occur, including holding those accountable who engage in criminal activity while in prison.”
“To anyone who would try to harm the people of South Carolina with violence, intimidation or extortion, we are coming after you wherever you are,” said U.S. Attorney Peter M. McCoy Jr. of the District of South Carolina. “Neither pandemic nor prison walls will provide refuge from the full force of the federal government. While the U.S. Attorney’s Office in South Carolina has a long and respected history of seeking justice for victims of crime, in the past year, my office has taken an even deeper look into the violence of organized crime and drug gangs. As such, we have sought and received some of the harshest sentences of any U.S. Attorney’s Office in the country. Be it in jail or on the outside, organized crime organizations in South Carolina will be sought out as aggressively as the law allows.”
“This was a complex, multi-jurisdictional investigation aimed at taking down an alleged criminal operation of historic reach in our states,” said Special Agent in Charge Vince Pallozzi of the Bureau of Alcohol, Tobacco, and Firearms (ATF) Charlotte Field Division. “The brazen criminal acts charged fueled gun violence and drug trafficking in numerous counties and cities. To shut down this alleged operation is a major win for public safety in South Carolina.”
“This alleged vast and brazen criminal enterprise only could have been dismantled by a united and dedicated team of law enforcement officers from across this state,” said Special Agent in Charge Susan Ferensic of the FBI’s Columbia Field Office. “The FBI is proud to be part of that team. We will see this investigation through and will remain vigilant to identify and arrest all those who try to destroy our communities through violence and drug trafficking.”
The case began in July 2017 as an investigation by a number of agencies, including ATF, the Lexington County Multi-Agency Narcotics Enforcement Team, and the Eleventh Circuit Solicitor’s Office, into methamphetamine trafficking and the illegal sale of firearms. As the investigation grew, the evidence led law enforcement to focus on the Insane Gangster Disciples (IGD), a branch of the nationwide gang Folk Nation.
According to the indictment, several IGD members ran a drug empire from SCDC with the use of contraband cellphones, assistance from individuals outside of prison, and other means. Further, the indictment alleges that several incarcerated IGD members ordered violent retaliatory measures against those they believed were providing information to law enforcement and against individuals they believed had stolen drug proceeds or owed money to the gang. It is alleged these violent acts, to include murder and kidnapping, were often carried out by IGD members outside the jails. Additionally, the 101-page indictment alleges that to perpetuate the enterprise and to maintain and extend its power, members and associates of the gang committed, attempted to commit, and conspired to commit, additional acts such as armed robbery, extortion, arson, assault and battery, drug trafficking, money laundering, and obstruction of justice.
The following defendants have been charged in the indictment for conduct related to their alleged roles in the RICO conspiracy and related crimes:
- Matthew J. Ward, aka “Bones,” 36; Rebecca Martinez, 33; Cynthia Rooks, 52; Richard Ford, 62; Amber Hoffman, 26; Samuel Dexter Judy, 29; Montana Barefoot, 25; Benjamin Singleton, 46; Kayla Mattoni, 38; Alexia Youngblood, 38; Clifford Kyzer, 35; Mark Edward Slusher, 46; Aaron Michael Carrion, aka “Cap G,” 28; and Crystal Nicole Bright, 40, all of Lexington, South Carolina;
- Lisa Marie Costello, 43; Aaron Corey Sprouse, 29; James Robert Peterson, aka “Man Man,” 32; Catherine Amanda Ross, 28; Brandon Lee Phillips, aka “Lil B,” 36; Billy Wayne Ruppe, 55; and Windy Brooke George, 21, all of Gaffney, South Carolina;
- Arian Grace Jeane, 26; Heather Henderson Orrick, 33; Joshua Lee Scott Brown, 23; Alex Blake Payne, 28; Sally Williams Burgess, aka “Cricket,” 37; and Edward Gary Akridge, aka “G9,” “G9 the Don,” and “Eddie Boss,” 28, all of Greenville, South Carolina;
- John Johnson, 36, of Gaston, South Carolina;
- Kelly Still, 43, of Windsor, South Carolina;
- Kelly Jordan, 34, of Williamston, South Carolina;
- Robert Figueroa, 43, and Brian Bruce, 48, of West Columbia, South Carolina;
- Tiffanie Brooks, 36, of Columbia, South Carolina;
- Juan Rodriguez, aka “Fat Boy,” 40, of Woodruff, South Carolina;
- Jonathan Eugene Merchant, aka “Merck,” 27, of Laurens, South Carolina;
- Jennifer Sorgee, 36, of Easley, South Carolina;
- Brittney Shae Stephens, 32, of Anderson, South Carolina;
- Matthew Edward Clark, 41, of York, South Carolina;
- Virginia Ruth Ryall, 43, of Gastonia, North Carolina, and,
- Lisa Marie Bolton, 32, of Dallas, North Carolina.
Of these defendants, Ward, Peterson, Akridge, and Rodriguez were serving sentences in SCDC at the time the alleged crimes were committed.
In connection with the investigation, agents seized more than 40 kilograms of methamphetamine, more than 130 firearms, and various quantities of heroin and fentanyl.
An indictment merely contains allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the ATF, FBI, Lexington County Sheriff’s Department, Lexington County Multi-Agency Narcotics Enforcement Team, SCDC, Greenville County Sheriff’s Office, Anderson County Sheriff’s Office, South Carolina Law Enforcement Division, Cherokee County Sheriff’s Office, Laurens County Sheriff’s Office, and Richland County Sheriff’s Department. The South Carolina Attorney General’s Office, Fifth Circuit Solicitor’s Office, Eighth Circuit Solicitor’s Office, Eleventh Circuit Solicitor’s Office, and Thirteenth Circuit Solicitor’s Office also assisted with the case.
Trial Attorney Lisa Man and Principal Deputy Kim Dammers with the Criminal Division’s Organized Crime and Gang Section, Assistant U.S. Attorneys Justin Holloway and Brandi Hinton of the District of South Carolina, and Special Assistant U.S. Attorney Casey Rankin with the Eleventh Circuit Solicitor’s Office are prosecuting the case.
This case is being 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.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
- Matthew J. Ward, aka “Bones,” 36; Rebecca Martinez, 33; Cynthia Rooks, 52; Richard Ford, 62; Amber Hoffman, 26; Samuel Dexter Judy, 29; Montana Barefoot, 25; Benjamin Singleton, 46; Kayla Mattoni, 38; Alexia Youngblood, 38; Clifford Kyzer, 35; Mark Edward Slusher, 46; Aaron Michael Carrion, aka “Cap G,” 28; and Crystal Nicole Bright, 40, all of Lexington, South Carolina;
40 Charged in Largest Federal Racketeering Conspiracy in South Carolina HistoryRead the Press Release
Columbia, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that a federal grand jury has returned a 147-count superseding indictment against 40 defendants across South Carolina in the largest federal racketeering conspiracy in South Carolina history. The indictment alleges a sprawling criminal enterprise whereby inmates with the South Carolina Department of Corrections (SCDC), often by means of contraband cell phones, orchestrated murder, kidnapping, firearms distribution, and an international drug operation.
Specifically, the grand jury charged 17 of the defendants with conspiracy under the Racketeer Influenced and Corrupt Organizations (RICO) Act, a statute designed to eliminate organized crime and prosecute the racketeering activities of these organizations. Several of the crimes alleged in the indictment were charged under the Violent Crimes in Aid of Racketeering (VICAR) statute, which makes it a crime for a person to commit any of a list of violent crimes in return for, among other things, maintaining or increasing position within the enterprise. Of the 40 defendants, 24 defendants were charged in the initial indictment in this case for conduct related to their alleged roles in the enterprise’s drug trafficking organization.
“The defendants allegedly operated a violent and lucrative drug enterprise on behalf of the Insane Gangster Disciples while incarcerated,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “The department is committed to investigating and prosecuting gang-related crimes no matter where they occur, including holding those accountable who engage in criminal activity while in prison.”
“To anyone who would try to harm the people of South Carolina with violence, intimidation or extortion, we are coming after you wherever you are,” said United States Attorney McCoy. “Neither pandemic nor prison walls will provide refuge from the full force of the federal government.”
The case began in July 2017 as an investigation by a number of agencies, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Lexington County Multi-Agency Narcotics Enforcement Team, and the Eleventh Circuit Solicitor’s Office, into methamphetamine trafficking and the illegal sale of firearms. The investigation grew and began to focus on the Insane Gangster Disciples (IGD), a branch of the nationwide gang Folk Nation.
According to the indictment, several IGD members, while SCDC inmates and with the assistance of others on the outside, ran a drug empire from prison using contraband cell phones and other means. Further, the indictment alleges that several IGD members in prison ordered violent retaliatory measures against those they believed were providing information to law enforcement and against individuals they believed had stolen drug proceeds or owed money to the gang. It is alleged these violent acts, to include murder and kidnapping, were often carried out by IGD members outside the jails. Additionally, the 101-page indictment alleges that to perpetuate the enterprise and to maintain and extend its power, members and associates of the gang committed, attempted to commit, and conspired to commit, additional acts such as armed robbery, extortion, arson, assault and battery, drug trafficking, money laundering, and obstruction of justice.
“While the U.S. Attorney’s Office in South Carolina has a long and respected history of seeking justice for victims of crime, in the past year, my office has taken an even deeper look into the violence of organized crime and drug gangs,” United States Attorney McCoy added. “As such, we have sought and received some of the harshest sentences of any U.S. Attorney’s Office in the country. Be it in jail or on the outside, organized crime organizations in South Carolina will be sought out as aggressively as the law allows.”
“This was a complex, multi-jurisdictional investigation aimed at taking down an alleged criminal operation of historic reach in our states,” said ATF Special Agent in Charge Vince Pallozzi. “The brazen criminal acts charged fueled gun violence and drug trafficking in numerous counties and cities. To shut down this alleged operation is a major win for public safety in South Carolina.”
“This alleged vast and brazen criminal enterprise only could have been dismantled by a united and dedicated team of law enforcement officers from across this state,” said FBI Special Agent in Charge Susan Ferensic. “The FBI is proud to be part of that team. We will see this investigation through and will remain vigilant to identify and arrest all those who try to destroy our communities through violence and drug trafficking.”
“As alleged in the indictments, illegal cell phones enabled these inmates to operate a sophisticated, international drug trafficking ring from inside prison walls,” said Bryan Stirling, Director of the S.C. Department of Corrections. “We cannot ensure the public is safe from criminals until states are allowed to jam cell phone signals. We need Congress to act on this pressing public safety issue and schedule a hearing on the Cellphone Jamming Reform Act.”
“This case is another example of how joint cooperation, sharing of information, and good communication between state, federal, and local agencies can be most productive for the cause of justice in South Carolina,” said South Carolina Attorney General Alan Wilson, who thanked all the state, federal, and local agencies involved in this joint investigation, including the contributions of State Grand Jury Division staff.
“It goes without saying that the success of this case would not have materialized if it weren’t for the intentional open line of communication between all the agencies involved,” said Greenville County Sheriff Hobart Lewis. “The tremendous collaboration between agencies and their willingness to put the success of the investigation above all else is a testament to the professionalism in our state and I am so proud to be a part of this law enforcement family.”
“I’m proud of the cooperation of law enforcement involved in this case and the officers from our agency,” said Cherokee County Sheriff Steve Mueller. “The criminals who desire to prey on our citizens should know we stand ready to pursue them relentlessly using all available resources at the local, state and federal level to hold them accountable for violating the law.”
“This case is a result of hard work and long hours,” said Laurens County Sheriff Don Reynolds. “I’m proud of the hard work by the Laurens County Sheriff’s Office. I’m also glad for the team effort of all involved to achieve these results.”
“We are proud to have worked with all the participating local, state and federal agencies to get a high volume of drugs and guns off the street,” said Lexington County Sheriff Jay Koon. “Communities are safer because of all the cooperation between agencies. With strong relationships in place, we can really make a difference in the lives of those we serve.”
“Criminals will realize that law enforcement agencies work together,” said Richland County Sheriff Leon Lott. “And even if they try to take advantage of jurisdictional lines, they will not get away with their misdeeds. No matter how long it takes, we will get them.”
“The interagency partnership in this case was unprecedented and has increased the safety of not only our community but those throughout the state as well,” said Anderson County Sheriff Chad McBride.
“Once again, we see the tremendous cooperation of law enforcement in South Carolina,” said Pickens County Sheriff Rick Clark. “Our professional narcotics agents across the state work tirelessly to make these arrests and fight the war on drugs in our communities.”
The following defendants have been charged in the indictment for conduct related to their alleged roles in the RICO conspiracy and/or related crimes:
- Matthew J. Ward, a/k/a “Bones,” 36, of Lexington;
- Rebecca Martinez, 33, of Lexington;
- Cynthia Rooks, 52, of Lexington;
- Richard Ford, 62, of Lexington;
- Amber Hoffman, 26, of Lexington;
- Samuel Dexter Judy, 29, of Lexington;
- Brian Bruce, 48, of West Columbia;
- Montana Barefoot, 25, of Lexington;
- John Johnson, 36, of Gaston;
- Kelly Still, 43, of Windsor;
- Benjamin Singleton, 46, of Lexington;
- Kayla Mattoni, 38, of Lexington;
- Alexia Youngblood, 38, of Lexington;
- Clifford Kyzer, 35, of Lexington;
- Kelly Jordan, 34, of Williamston;
- Mark Edward Slusher, 46, of Lexington;
- Robert Figueroa, 43, of West Columbia;
- Tiffanie Brooks, 36, of Columbia;
- Crystal Nicole Bright, 40, of Lexington;
- Brittney Shae Stephens, 32, of Anderson;
- Arian Grace Jeane, 26, of Greenville;
- Lisa Marie Costello, 43, of Gaffney;
- Aaron Corey Sprouse, 29, of Gaffney;
- Matthew Edward Clark, 41, of York;
- James Robert Peterson, a/k/a/ “Man Man,” 32, of Gaffney;
- Edward Gary Akridge, a/k/a “G9,” a/k/a “G9 the Don,” a/k/a/ “Eddie Boss,” 28, of Greenville;
- Aaron Michael Carrion, a/k/a “Cap G,” 28, of Lexington;
- Heather Henderson Orrick, 33, of Greenville;
- Virginia Ruth Ryall, 43, of Gastonia, North Carolina;
- Lisa Marie Bolton, 32, of Dallas, North Carolina;
- Catherine Amanda Ross, 28, of Gaffney;
- Brandon Lee Phillips, a/k/a “Lil B,” 36, of Gaffney;
- Billy Wayne Ruppe, 55, of Gaffney;
- Windy Brooke George, 21, of Gaffney;
- Juan Rodriguez, a/k/a “Fat Boy,” 40, of Woodruff;
- Jonathan Eugene Merchant, a/k/a/ “Merck,” 27, of Laurens;
- Joshua Lee Scott Brown, 23, of Greenville;
- Jennifer Sorgee, 36, of Easley;
- Alex Blake Payne, 28, of Greenville; and
- Sally Williams Burgess, a/k/a “Cricket,” 37, of Greenville.
Of these defendants, Ward, Peterson, Akridge, and Rodriguez were serving sentences in SCDC at the time the alleged crimes were committed.
Every defendant charged in the RICO conspiracy faces the potential penalty of life in prison due to sentencing enhancements through IGD’s involvement in murders and significant drug trafficking. Additionally, the defendants charged with murder in aid of racketeering and kidnapping in aid of racketeering also face life imprisonment. There are additional penalties for those charged with firearms crimes, drug crimes, robbery, and assault.
In connection with the investigation, law enforcement seized approximately 40 kilograms of methamphetamine, more than 130 firearms, and various quantities of heroin and fentanyl.
The case was investigated by the ATF, Federal Bureau of Investigation (FBI), Lexington County Sheriff’s Department, Lexington County Multi-Agency Narcotics Enforcement Team, SCDC, Greenville County Sheriff’s Office, Anderson County Sheriff’s Office, South Carolina Law Enforcement Division (SLED), Cherokee County Sheriff’s Office, Laurens County Sheriff’s Office, Pickens County Sheriff’s Office, and Richland County Sheriff’s Department. The South Carolina Attorney General’s Office, Fifth Circuit Solicitor’s Office, Seventh Circuit Solicitor’s Office, Eighth Circuit Solicitor’s Office, Eleventh Circuit Solicitor’s Office, and Thirteenth Circuit Solicitor’s Office also assisted with the case.
The prosecutors on the case are Assistant United States Attorneys Justin Holloway and Brandi Hinton, of the Greenville office, Special Assistant United States Attorney Casey Rankin with the Eleventh Circuit Solicitor’s Office, Department of Justice (DOJ) Trial Attorney Lisa Man, and Principal Deputy Kim Dammers with DOJ’s Organized Crime and Gang Section.
This case is being 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.
The United States Attorney 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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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
igd_-_rico_vicar_-_dsc_-_indictment.pdf
U.S. Attorney to Join Federal, State, and Local Law Enforcement Officers for a Press Conference Tomorrow, December 10, in Columbia at 2:00 p.m.Read the Press Release
Columbia, South Carolina --- United States Attorney Peter M. McCoy, Jr. announced today that a press conference will be held tomorrow, December 10, 2020, at 2:00 p.m., at the South Carolina Department of Corrections Headquarters, located at 4444 Broad River Road, Columbia, SC 29210.
Represented at the press conference will be the U.S. Attorney’s Office for the District of South Carolina; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Federal Bureau of Investigation (FBI); South Carolina Department of Corrections (SCDC); South Carolina Law Enforcement Division (SLED); Anderson County Sheriff’s Office; Cherokee County Sheriff’s Office; Greenville County Sheriff’s Office; Laurens County Sheriff’s Office; Lexington County Sheriff’s Department; and Richland County Sheriff’s Department.
WHEN: Tomorrow, Thursday, December 10, 2020, 2:00 p.m.
WHERE: South Carolina Department of Corrections Headquarters
4444 Broad River Road
Columbia, SC 29210
NOTES: Press inquiries regarding logistics should be directed to Derek A. Shoemake, 843-813-0982.
Members of the media wishing to attend the remarks should gather in the SCDC Recruiting Office parking lot (also located at 4444 Broad River Road) at 1:30 p.m., 30 minutes in advance of the press conference.
Additionally, due to security protocols at the location, while not required to attend, it is asked that each outlet provide name(s) of the journalists coming to the press conference by 11:00 a.m. EST tomorrow, Thursday, December 10, by email to [email protected].
Suspended Bamberg County Councilman Arrested on Federal Criminal Complaint on False Statements ChargeRead the Press Release
Columbia, South Carolina --- United States Attorney Peter M. McCoy, Jr. announced today that Kerry Trent Kinard, 49, of Bamberg, South Carolina, was arrested on a federal criminal complaint and charged with making material false statements in connection to the attempted acquisition of a firearm.
Kinard had his initial appearance on the federal charge before United States Magistrate Judge Shiva V. Hodges, where the court scheduled a preliminary hearing and a detention hearing for Thursday, December 17, 2020 at 10:00am. At this time, Kinard remains in custody.
According to the complaint, on November 5, 2020, a Bamberg County Grand Jury returned seven felony indictments against Kinard related to the sexual abuse of children over the course of numerous years, as alleged in those indictments. The complaint further alleges Kinard was on notice that he was under felony indictment as a result of the presiding South Carolina Court of General Sessions judge’s initial denial of bond citing the “unreasonable danger to the community” Kinard’s release would then represent, as a result of Kinard’s participation in numerous hearings on the state felony charges, and as a result of Governor Henry McMaster’s suspension of Kinard from service on the Bamberg County Council following the indictments.
As further alleged in the complaint, on October 27, 2020, after finding that Kinard represented a credible threat to the physical safety of a petitioner and that Kinard used or threatened to use physical force expected to cause bodily injury, a presiding South Carolina Family Court judge entered a protective order restraining Kinard from threatening or using physical force against the petitioner. The complaint alleges Kinard was also on notice that he was subject to such an order as a result of his participation in the hearing on the protective order.
The complaint alleges that, while out on bond, under seven felony indictments, and subject to a protective order, Kinard entered a federally licensed firearms dealer and made two false statements material to the lawfulness of the sale in an attempt to acquire a firearm. On December 3, 2020, Kinard attempted to acquire a Taurus, Model G3 9mm pistol from a firearm dealer in Columbia. In the course of doing so, the complaint alleges Kinard made two false statements in violation of federal law: Kinard falsely claimed he was not under felony indictment and Kinard claimed he was not subject to a protective order. The complaint alleges that both false statements were material in that if he had answered truthfully, the sale would have been unlawful and therefore denied.
The maximum penalty for this offense is ten years in federal prison.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), who brought the federal criminal complaint, with assistance from the South Carolina Law Enforcement Division (SLED). The case is being prosecuted by Assistant United States Attorney Elliott B. Daniels of the Columbia Office.
United States Attorney McCoy stated that all charges in this case are merely allegations and that the defendant is presumed innocent until and unless proven guilty.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
kinard-_unsealed_complaint.pdfMount Pleasant Armed Career Criminal Sentenced to More Than 15 Years for Gun PossessionRead the Press Release
Charleston, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that Eric Martin Scott, Jr., 25, of Mount Pleasant, was sentenced to more than 15 years in federal prison after pleading guilty to being a felon in possession of a firearm.
On March 21, 2017, Scott was pulled over for a traffic offense, and a 9mm pistol was located in his car. At the time, Scott was a convicted felon and prohibited from possessing firearms. It was also established that Scott was an Armed Career Criminal because he had at least three prior serious drug felonies. This subjected him to a sentence of at least 15 years of imprisonment, and up to life.
“Keeping our communities safe is a top priority of our office,” said U.S. Attorney McCoy. “Mount Pleasant, the Lowcountry, and our State are safer knowing that this career armed criminal will remain behind bars for the foreseeable future. Our office will continue to seek harsh punishments for those with a blatant disregard for the law and who consistently put our law enforcement officers and neighbors in danger.”
United States District Court Judge David C. Norton sentenced Scott to 188 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, Mount Pleasant Police Department, and Charleston County Sheriff’s Office. 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.
Assistant United States Attorney Nathan Williams of the Charleston office prosecuted the case.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
17 Charged in Lancaster-Based Federal Drug Conspiracy and Firearms Case after Multi-Year InvestigationRead the Press Release
Columbia, South Carolina --- United States Attorney Peter M. McCoy, Jr. announced today that federal, state, and local law enforcement officers charged 16 individuals in federal court for their roles in a drug trafficking organization that operated out of the Midlands region of South Carolina. An additional defendant was charged in a related case with violations of federal firearms laws. Charges against the 17 follow federal charges against five additional defendants in related cases, four of whom have been convicted.
A joint team of more than 55 federal, state, and local law enforcement officers made eight arrests in the case today. Four defendants were already in custody, and five defendants remain at large. The arrested defendants were arraigned before the Honorable Shiva V. Hodges, United States Magistrate Judge, in Columbia.
The charges follow a more than two-year long investigation by federal, state, and local law enforcement into a fentanyl, heroin, and methamphetamine distribution ring in the Lancaster area. The investigation resulted in the seizure of various quantities of fentanyl, heroin, and methamphetamine, 16 firearms, and ammunition.
“Operations like these leave our communities safer and more stable than they were before; the people of South Carolina deserve nothing less,” said U.S. Attorney McCoy. “We will continue to work tirelessly with our federal, state, and local partners to dismantle large-scale, organized drug-dealing organizations, which cause untold levels of harm to end users, their families, and their communities.”
“This focused and collaborative effort was designed to make a long-lasting impact on the level of gun violence and criminal activity in Lancaster County,” said ATF Special Agent in Charge Vince Pallozzi. “Along with our law enforcement partners, we have taken a number of violent individuals out of the community throughout this investigation and made significant progress in on-going efforts to decrease gun violence.”
“Today was a good day in Lancaster County,” said Sheriff Barry S. Faile. “Our Drug Task Force agents, along with agents from several of our state and federal partners, have been working for many months on investigating this alleged wide-ranging conspiracy. I appreciate the help we got from all quarters in bringing this operation to a close.”
The indictment charges 47 counts alleging violations of federal narcotics, firearm, and counterfeit laws for conduct spanning from February 2017 to present. Specifically, the indictment returned by a federal Grand Jury alleges defendants distributed, and possessed with intent to distribute, fentanyl, heroin, and methamphetamine, and that some defendants violated federal firearms laws including by possessing or using firearms in furtherance of drug trafficking crimes.
The following defendants have been charged in the Indictment for conduct related to their alleged roles in the drug trafficking organization:
- Clarence Grover Kirk III, 38, of Rock Hill;
- William Earl Belk, 29, of Lancaster;
- Celeste Allen Pardue, 47, of Lancaster;
- Rachell Nichole House, 32, of Lancaster;
- Berry Allen McIlwain Jr., 30, of Lancaster;
- Richard Hopkins, 30, of Lancaster;
- Christopher Lynn Love, 44, of Lancaster;
- Scott Charles Catledge Jr., 27, of Lancaster;
- Dustin Robert Barton, 33, of Lancaster;
- Ezekiel T. Williams, 23, of Lancaster; and
- Larry Christopher Craig, 50, of Lancaster.
In a related case, Dennis Lee Williams, 29, of Lancaster, was charged with violating federal firearms laws.
The case was a joint investigation by the ATF and Lancaster County Sheriff’s Office, who were assisted by Homeland Security Investigations (HSI), South Carolina Law Enforcement Division (SLED), Lancaster Police Department, and the Sixth Circuit Solicitor’s Office.
This case is being 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.
Assistant U.S. Attorneys Justin B. Holloway, Elliott B. Daniels, Winston I. Marosek, and Michael O’Mara of the Columbia and Greenville offices are prosecuting the case.
The United States Attorney 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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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.