District of South Carolina
Press releases recorded for this federal judicial district.
Justice Department Awards over $97 Million to Improve Public Safety and Victim Services for American Indians and Alaska NativesRead the Press Release
Contact Person: Carrie Fisher (864) 282-2100
WASHINGTON, D.C. – The Department of Justice today announced 206 awards, totaling more than $97 million, to American Indian tribes, Alaska Native villages, tribal consortia and tribal designees. The announcement was made at the 2015 Tribal Leader Briefing, sponsored by the National Congress of American Indians, and included Tribal leaders, Members of Congress and Administration officials.
The Catawba Nation received a grant totaling $422,393 for its tribal victim assistance program. The Comprehensive Tribal Victim Assistance Program was created to support tribal nations’ efforts to develop or enhance and sustain a comprehensive victim assistance program that provides a coordinated multidisciplinary response to victims of crimes, their families, and communities and provides trauma-informed, culturally competent holistic services to the victims, their families, and communities.
The awards are made through the Department’s Coordinated Tribal Assistance Solicitation (CTAS), a single application for tribal-specific grant programs. The Department developed CTAS through its Office of Community Oriented Policing Services, Office of Justice Programs and Office on Violence Against Women, and administered the first round of consolidated grants in September 2010.
“This grant will assist the Catawba Nation in strengthening its commitment and support of tribal victims and held provide for a safer and stronger Catawba Nation,” said U.S. Attorney William N. Nettles.
“For the past five years, the CTAS program has helped tribes develop their own comprehensive approaches to making their communities safer and healthier,” said Acting Associate Attorney General Stuart F. Delery. “CTAS grants have funded hundreds of programs to better serve crime victims, promote community policing, and strengthen justice systems. This year’s awards also support efforts to reduce domestic and dating violence, and promote wellness and healing for tribal youth, among many other programs.”
The awards are made through the Department’s Coordinated Tribal Assistance Solicitation (CTAS), a single application for tribal-specific grant programs. The Department developed CTAS through its Office of Community Oriented Policing Services, Office of Justice Programs and Office on Violence Against Women, and administered the first round of consolidated grants in September 2010.
Since then, more than 1,400 grants totaling more than $620 million have been provided to enhance law enforcement practices, victim services, and sustain crime prevention and intervention efforts in nine purpose areas; public safety and community policing; justice systems planning: alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; and tribal youth programs.
American Indians and Alaska Natives experience disproportionate rates of violence and victimization and often encounter significant obstacles to identifying and accessing culturally relevant services. CTAS funding helps tribes to develop and strengthen tribal justice systems’ response to crime, while significantly increasing programs and services available to them.
A listing of today’s awards is available at www.justice.gov/tribal/.
Today’s announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in American Indian and Alaska Native communities.
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Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Nancy Wicker (803) 929-3000
United States Attorney Bill Nettles stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictment(s) against the following:
Two Men Indicted for Counterfeit Access Device Conspiracy
Chernoh A. Jalloh, age 28, and Abraham B. Freeman, age 27, were charged in a 1-count indictment with conspiracy to possess fifteen or more counterfeit access devices, a violation of Title 18, United States Code, Section 1029(b)(2). The maximum penalty Jalloh and Freeman could receive is five years imprisonment and a maximum fine of $250,000. The case was investigated by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) special agents and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.Illegal Alien Indicted for Possession and Distribution of Child Pornography
Joel Estrada-Secundino was charged in a 2-count indictment with possession of child pornography, a violation of Title 18, United States Code, Section 2252A(a)(5)(B), and distribution of child pornography, a violation of Title 18, United States Code, Section 2252(a)(2). The maximum penalty Estrada-Secundino could receive is 20 years imprisonment and a maximum fine of $250,000 for the possession charge, and not less than 5 years and not more than 20 years imprisonment and a maximum fine of $250,000 for the distribution charge. The case was investigated by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) special agents and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution. This case is being 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.Four Greenville Residents Charged with Conspiracy
Traci L. Albertson, a/k/a Traci L. Martin, age 43, Geoffrey R. Albertson, age 32, Keelan R. Fowler, age 34, and Donald B. Hudson, age 32, all of Greenville, South Carolina, were charged in a 1-count indictment with conspiracy to steal mail and possess stolen mail; to make, utter and possess counterfeit securities; and to use unauthorized access devices; in violation of Title 18, United States Code, Section 371. The maximum penalty the defendants could receive is five years imprisonment and a maximum fine of $250,000. The case was investigated by United States Postal Inspection Service agents and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.Social Security Fraud Indictment
Takenya Gallman Rookard, a/k/a “Takenya Natori Gallman,” age 33, of Greenville, was charged in a 2-count indictment. Takenya Gallman Rookard was charged with Theft of Government Property, a violation of Title 18, United States Code, Section 641 and Social Security Fraud, a violation of Title 42, United States Code, Section 408. The maximum penalty Rookard could receive is 10 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the Social Security Office of Inspector General and is assigned to Assistant United States Attorney Jamie Lea Schoen of the Greenville office for prosecution.Social Security Fraud Indictment
William Evans, age 61, of Greenville, was charged in a 2-count indictment. William Evans was charged with Theft of Government Property, a violation of Title 18, United States Code, Section 641 and Social Security Fraud, a violation of Title 42, United States Code, Section 408. The maximum penalty Evans could receive is 10 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the Social Security Office of Inspector General and is assigned to Assistant United States Attorney Jamie Lea Schoen of the Greenville office for prosecution.Social Security Fraud Indictment
Donna Marie Clark, age 49, of Greenville, was charged in a 2-count indictment. Donna Marie Clark was charged with Theft of Government Property, a violation of Title 18, United States Code, Section 641 and Identity Theft, a violation of Title 18, United States Code, Section 1028A. The maximum penalty Clark could receive is 12 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the Social Security Office of Inspector General and is assigned to Assistant United States Attorney Jamie Lea Schoen of the Greenville office for prosecution.Illegal Alien Charged with Possession of a Firearm and Counterfeit Immigration Documents
Jose Manuel Rangel-Flores, age 45, was charged in a 2-count indictment. Jose Manuel Rangel-Flores was charged with being an Illegal Alien in Possession of a Firearm, a violation of Title 18, United States Code, Section 922(g), and Possessing Counterfeit Immigration Documents, a violation of Title 18, United States Code, Section 1546. The maximum penalty Rangel-Flores could receive is 10 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the Homeland Security and is assigned to Assistant United States Attorney Jamie Lea Schoen of the Greenville office for prosecution.The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Nancy Wicker (803) 929-3000
Columbia, South Carolina----United States Attorney Bill Nettles stated today that a Federal Grand Jury in Charleston, South Carolina, returned Indictment(s) against the following:
Bluffton Man Indicted for Illegal Reentry of an Alien
Arturo Luis Hernandez Hernandez, age 34, of Bluffton, was charged in a one-count Indictment with Illegal Reentry of an Alien, in violation of Title 8, United States Code, Section 1326(a). The maximum penalty Hernandez could receive is 2 years imprisonment and a $250,000 fine. The case was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE-ERO) and is assigned to Assistant United States Attorney Dean H. Secor of the Charleston office for prosecution.North Charleston Man Charged with Production and Possession of Child Pornography and Felon in Possession of a Firearm
Albert Taylor, age 51, of North Charleston, was charged in a three-count Indictment with Production of Child Pornography, Possession of Child Pornography, and Felon in Possession of a Firearm, in violation of Title 18, United States Code, Sections 2251(a), 2252A(a)(5)(B), and 922(g)(1) respectively. Taylor could receive a mandatory minimum sentence of 15 years imprisonment and a maximum of 30 years imprisonment and a $250,000 fine for the Production of Child Pornography count, a maximum sentence of 20 years imprisonment and a $250,000 fine for the Possession of Child Pornography count, and a mandatory minimum sentence of 15 years imprisonment and a maximum of Life imprisonment and a $250,000 fine for the Felon in Possession of a Weapon count. The case was investigated by agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) and is assigned to Assistant United States Attorney Rhett DeHart of the Charleston office for prosecution.Mr. Nettles stated that the charges in this Indictment are merely accusations and that the defendants are presumed innocent until and unless proven guilty.
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Savannah River Site Contractor Agrees to Pay $3.8 Million to Settle False Claims Act AllegationsRead the Press Release
Contact Person: James Leventis (803) 929-3000
Columbia, South Carolina---- United States Attorney Bill Nettles announced today that Parsons Government Services Inc. has agreed to pay the United States $3.8 million to settle allegations that the company knowingly mischarged the U.S. Department of Energy (DOE) for ineligible or inflated short-term and long-term employee relocation costs in connection with its contract on the DOE Salt Waste Processing Facility Project (SWPF) at the DOE Savannah River Site in Aiken, South Carolina. Parsons is headquartered in Pasadena, California.
“The District of South Carolina continues to devote significant resources to pursuing claims under the False Claims Act and this is yet another example of how this commitment is benefiting the taxpayers by recovering funds for the government,” said U.S. Attorney Bill Nettles of the District of South Carolina
“Those who expect to do business with the government must do so fairly and honestly,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates that the Department of Justice will pursue contractors that knowingly seek taxpayer funds to which they are not entitled.”
Since Sept. 1, 2002, Parsons has been the primary construction contractor on the DOE’s SWPF project at the Savannah River Site. Pursuant to the terms of the SWPF contract, Parsons was entitled to be reimbursed for the payments it made to eligible employees for moving, meals, lodging and transportation expenses incurred when the employees were relocated or transferred by Parsons to work on the SWPF project in Aiken. In order to be entitled to reimbursement by the DOE, however, Parsons was required to take steps to ensure that the employees met certain contractual requirements of eligibility, such as maintaining a permanent residence at the location from which they were transferred. The United States alleged that Parsons sought and obtained reimbursement for these relocation expenses under the SWPF contract even for employees it knew did not qualify for these payments under the terms of the contract.
The settlement was the result of a coordinated effort by the United States Attorney’s Office for the District of South Carolina, the Civil Division’s Commercial Litigation Branch, the DOE Savannah River Operations Office and the DOE Office of Inspector General.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
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Two from Sumter Indicted for Tax FraudRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles announced today an indictment charging Crystal A. Blakely, 26, and Hercules E. Baker, 27, both of Sumter, South Carolina, with their roles in a scheme to defraud the United States by claiming false and fraudulent federal tax refunds.
The indictment alleges that both defendants conspired to defraud the United States Department of Treasury between January 2012 and April 2014 by submitting federal income tax returns to the Internal Revenue Service that claimed false tax refunds, in violation of Title 18, United States Code, Section 286. Blakely is also charged with three counts of wire fraud, in violation of Title 18, United States Code, Section 1343, and two counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. The maximum penalty each could receive is ten years’ imprisonment for the conspiracy count, twenty years’ imprisonment for the wire fraud counts, and two years’ consecutive imprisonment for the aggravated identity theft counts.
The indictment is the result of an investigation conducted by the Internal Revenue Service. Assistant United States Attorney Ben Garner of the Columbia office is prosecuting the case.
Mr. Nettles states that the charges in this Indictment are merely accusations and the defendants are presumed innocent until and unless proven guilty.
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Anderson Woman Sentenced to 105 Months for Fraud Involving Tax Refund ChecksRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Helen Jean Anderson, age 57, of Anderson, South Carolina, was sentenced to 105 months for conspiracy to commit mail fraud, a violation of Title 18, United States Code, Section 1349. Senior United States District Henry M. Herlong, Jr. of Greenville imposed the sentence and ordered Anderson to pay $407,336.86 in restitution.
The evidence at the change of plea hearing established that Anderson and six co-conspirators, all of whom have been sentenced, would obtain the means of identification of other individuals and then file fraudulent tax returns. Anderson was the leader of the conspiracy. Once the treasury checks arrived, Anderson sought ways to negotiate them and recruited check passers in Anderson and Greenwood counties. The owner of a convenience store in the upstate told law enforcement that Helen Anderson had recently been in the store and claimed to have 200 Treasury checks to cash and said that she would pay the store’s owner $500 per check to cash them. The owner refused and contacted the police.
On August 6, 2013, a confidential informant working with United States Postal Inspectors met with Helen Anderson and was wired for audio and video. Anderson gave the informant multiple Treasury checks to cash. Anderson instructed the informant to bring her the money from the cashing of the checks within two days. She told the informant that she might have more Treasury checks available to cash once the informant returned the money to her.
In order to hide her ties to the Treasury checks, Anderson paid co-conspirators to allow her to use their addresses so checks and other tax documents would be sent to those addresses and would not obviously be associated with Anderson.
Law enforcement estimates that Anderson and her co-conspirators negotiated $483,294.40 in Treasury checks derived from fraudulent returns.
According to Special Agent in Charge Thomas J. Holloman III: “The Internal Revenue Service, Criminal Investigation is committed to protecting the honest taxpayers’ hard-earned money from ID thieves who endeavor to use those funds for their personal aggrandizement.”
Regarding identity theft, Mr. Nettles said the following: “The loss and pain caused by identity theft is enormous. The financial loss in the United States is in the billions of dollars. Victims spend untold hours trying to undo the damage caused by the offenders. Preventing and punishing identity thieves is, and will remain, a priority for the U.S. Attorney’s Office.”
The case was investigated by agents of the Internal Revenue Service, the United States Postal Inspection Service, and the Anderson County Sheriff’s Office. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
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Man Sentenced to 17.5 Years on Federal Heroin, Money Laundering, and Firearm ChargesRead the Press Release
Contact Person: Stacey Haynes (803) 929-3000
Columbia, South Carolina---- United States Attorney Bill Nettles stated that Eric Shawn Bradley, a/k/a “E,” age 47, of Columbia, South Carolina and formerly of Brooklyn, New York, was sentenced to a total of 210 months (17.5 years) imprisonment today in federal court in Columbia, South Carolina, after earlier pleading guilty to the following charges: conspiracy to possess with intent to distribute and to distribute 100 grams or more of heroin, money laundering conspiracy, and felon in possession of a firearm and ammunition, all in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(B) and Title 18, United States Code, Sections 1956(h), 922(g)(1), and 924(a)(2). Senior United States District Judge Joseph F. Anderson, Jr., of Columbia imposed the sentence, which will be followed by 8 years of supervised release.
Bradley was one of 10 defendants charged in April 2014, following a series of court-authorized, DEA-monitored wiretaps over several telephones in the Columbia area. The investigation revealed that a group of individuals in the Columbia area were obtaining heroin from various sources outside of South Carolina and then distributing it in the Midlands. Evidence indicated that Bradley and others were involved in the 2011 and 2012 importation of heroin into the United States from India. Several packages destined for Columbia and containing heroin were intercepted by law enforcement during the investigation. Evidence further showed that the co-defendants later obtained heroin in New York and transported it back to Columbia where it was distributed. The New York heroin suppliers have been charged by the Eastern District of New York for their role in the drug conspiracy. Bradley faced an enhanced sentence based upon his prior felony drug convictions. Bradley had prior state convictions for grand larceny, criminal possession of a weapon, possession of heroin, strong arm robbery, and possession of cocaine.
Five of Bradley’s co-defendants have plead guilty to their role in the drug conspiracy here in South Carolina and have been sentenced as follows: Kenneth Crawford, age 42, of Washington, D.C. and formerly of Columbia, was sentenced to 120 months imprisonment with 8 years of supervised release to follow; Charles Bradley, age 32, of Columbia was sentenced to 57 months imprisonment with 6 years of supervised release to follow; Anthony Glover, age 40, of Columbia was sentenced to 120 months imprisonment with 8 years of supervised release to follow; and Jessany Lyons, age 25, of Far Rockaway, New York, was sentenced to 37 months imprisonment with 3 years of supervised release. Co-defendant Larry Bookman, age 52, of Columbia, has plead guilty and is currently awaiting sentencing. Four other co-defendants charged in the indictment remain fugitives.
The case was investigated by the Drug Enforcement Administration’s (DEA) High Intensity Drug Task Force, which is comprised of agents and officers from the DEA, Homeland Security Investigations, United States Secret Service, Federal Bureau of Investigation, Columbia Police Department, Richland County Sheriff’s Department, South Carolina State Law Enforcement Division (SLED), Lexington County Sheriff’s Department, Kershaw County Sheriff’s Department, Orangeburg County Sheriff’s Department, and the Fifth Circuit Solicitor’s Office. Assistant United States Attorney Stacey D. Haynes of the Columbia United States Attorney’s Office prosecuted the case.
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Former Charter School Director Sentenced to 42 Months for Embezzling Government FundsRead the Press Release
Contact Person: Benjamin Garner (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Benita Dinkins-Robinson, age 40, of Bishopville, South Carolina, was sentenced in federal court in Columbia, South Carolina, for embezzling government funds in violation of 18 U.S.C. § 641. United States Chief District Judge Terry Wooten sentenced Dinkins-Robinson to 42 months’ imprisonment and ordered her to pay over $1.5 million in restitution.
Evidence presented during the ten-day trial and during the asset forfeiture phase of the case established that from 2007 to 2013, Dinkins-Robinson embezzled more than a million dollars in federal funds supplied by United States Department of Agriculture and the United States Department of Education that were intended to be used for the Mary L. Dinkins Higher Learning Academy, a charter school Dinkins-Robinson established in 2005. The jury also determined that Dinkins-Robinson must forfeit over $750,000 in annuities that she purchased while serving as the Executive Director of the charter school as well as her share in a Camden house that she owned.
The case was investigated by the Federal Bureau of Investigation and the United States Department of Education Office of Inspector General. Assistant United States Attorneys Winston Holliday and Ben Garner of the Columbia office handled the case.
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Video Poker Owner Pleads GuiltyRead the Press Release
Contact Person: Jim May (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Larry W. Flynn, a/k/a “L.W. Flynn,” age 40, of Columbia, South Carolina has entered guilty pleas in federal court to Operating a Gambling Business, a violation of 18 U.S.C. § 1955, and Evading Federal Taxes, in violation of 26 U.S.C § 7201. Senior United States District Judge Joseph F. Anderson, Jr. accepted the guilty plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented to the Court established that Flynn operated a video-poker gambling business in violation of South Carolina gambling laws and evaded paying taxes on the money he made from his gambling business. Between 2010 and 2013, Flynn owned and ran Magic Minutes, a South Carolina company that placed video-poker machines in various locations, such as convenience stores, liquor stores, party shops, and bowling alleys. On the machines owned by Flynn – as well as others who paid to utilize the name Magic Minutes – users could buy a “voucher” for phone minutes and then play black jack, keno, poker, and other games of chance. SLED seized over 200 Magic Minutes’ machines, which FBI experts determined to be illegal gambling devices. In operating this illegal gambling business in 2011 and 2012, Flynn had a substantial taxable income yet took various steps to evade his tax responsibility including not filing tax returns, operating a significant portion of his business and personal life in cash, and paying employees in cash.
Mr. Nettles stated the maximum penalty for operating a gambling business is imprisonment for 5 years and/or a fine of $250,000, and the maximum penalty for tax evasion is imprisonment for 5 years and/or a fine of $100,000.
The case was investigated by agents of the FBI, SLED, and IRS-CID. Assistant United States Attorneys Jim May and Jay Richardson are prosecuting the case, along with attorneys from the South Carolina Attorney General’s Office.
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Man Pleads Guilty to Shooting Federal AgentRead the Press Release
Contact Person: Stacey Haynes (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that James William Lewis, a/k/a “Jessie,” a/k/a “Phoenix,” age 32, of Kings Mountain, North Carolina pled guilty today in federal court. Lewis plead guilty to a 2nd/subsequent offense of use/possession/discharge of a firearm during a crime of violence, to wit: assault on a federal agent, in violation of Title 18, United States Code, Sections 924(c)(1)(A)(iii) and 924(c)(1)(C). Senior United States District Judge Joseph F. Anderson, Jr. accepted the plea and will impose a sentence after he has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that during the early morning hours of January 7, 2014, deputized task force agents with the Federal Bureau of Investigation’s (FBI) Charlotte Safe Streets Task Force/Violent Crime Apprehension Team were in Fort Mill, South Carolina searching for Lewis, who was wanted for an armed robbery of a Jack-in-the-Box restaurant in North Carolina. Agents, in police attire and accompanied by York County Sheriff’s Department officers in marked units, approached the residence of Lewis’ girlfriend, Kirstie Elaine Philome Barratt, age 22, in an attempt to determine if Lewis was in the residence. After approximately 15 minutes of the agents knocking on the door and announcing their presence with a loud speaker, Barratt came to the door. Barratt, who was advised by agents that it was a crime to make a false statement to federal agents, told the agents that Lewis was not in the home, that she had not seen him for two (2) months because they had broken up, and that the only other persons in the residence were her parents. Barratt gave the agents consent to search the residence. Upon completing a sweep of the residence, agents located Barratt’s parents asleep in one upstairs bedroom and noticed the door shut to another upstairs bedroom. Agents could hear a dog barking in that other upstairs bedroom, so they asked Barratt to secure the dog so they could search the bedroom. Barratt went into the bedroom and came out with the dog. Agents then went into the bedroom and found Lewis crouched in the corner with his weapon drawn. Gunfire ensued and an FBI task force agent, as well as Lewis, was shot. Both Barratt and Lewis were taken into custody. Barratt later advised agents that she knew Lewis was in the residence, that she thought he was going to hide in the attic, and that when she entered the bedroom to retrieve the dog, she saw him in the corner with the gun, but did not tell the agents before allowing them to enter the bedroom.
On October 22, 2014, Barratt plead guilty to making a false statement to a federal agent, in violation of Title 18, United States Code, Section 1001. At Barratt’s sentencing, the court granted the government’s motion for an upward departure from the federal guidelines sentencing range of 0 to 6 months, noting that this was a “rare” case and that Barratt “knowingly placed a law enforcement officer’s life in jeopardy” by her false statement. Barratt was sentenced to 24 months (2 years) imprisonment, to be followed by 3 years of supervised release. Barratt is currently in the Federal Bureau of Prisons. Barratt also may face deportation as a result of her conviction.
Mr. Nettles stated that Lewis faces a statutory mandatory minimum 25 years imprisonment consecutive to any other term of imprisonment, a fine of $250,000, and a term of supervised release of up to 5 years following the term of imprisonment. In July 2015, Lewis was sentenced to 108 months (9 years) in federal court in the Western District of North Carolina for the December 2013, robbery of the Jack-in-the-Box restaurant and possession of a firearm during that crime of violence, to wit: robbery. Lewis also has prior North Carolina state convictions for possession of cocaine (1999) and larceny of a motor vehicle (2000).
The case was investigated by the FBI, the York County Sheriff’s Department, and the South Carolina Law Enforcement Division (SLED), and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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Clover Gang Member Pleads Guilty to Federal Firearm and Drug ChargesRead the Press Release
Contact Person: Stacey Haynes (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Joseph Matthew Polk, age 24, of Clover, South Carolina pled guilty today in federal court. Polk plead guilty to possession with intent to distribute and distribution of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime (to wit: possession with intent to distribute and distribution of marijuana), all in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C) and Title 18, United States Code, Section 924(c). Under the plea agreement, Polk agreed to a total sentence of 240 months (20 years) imprisonment and an appropriate term of supervised release to follow, comprised of 180 months (15 years) imprisonment on the possession with intent to distribute and distribution of methamphetamine charge and 60 months (5 years) consecutive imprisonment on the firearm charge. Senior United States District Joseph F. Anderson, Jr. accepted the plea and will impose a sentence after he has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that on March 19, 2015, at his residence in Clover, South Carolina, Polk, while armed with a Harrington & Richardson .32 caliber revolver, sold a quantity of marijuana to a confidential informant. The following day, March 20, 2015, Polk, while armed with a Smith & Wesson 9mm handgun, sold a quantity of methamphetamine to a confidential informant. Thereafter, on March 24, 2015, Polk, while armed with a Smith & Wesson 9mm handgun, sold a quantity of methamphetamine to a confidential informant. On that date, a young child was observed in the same room where the distribution occurred and while Polk waved around the 9mm handgun. Each of the three distributions of drugs was recorded on audio and video by local law enforcement officers. Polk was arrested on state charges on April 9, 2015, and during the arrest, officers recovered the Smith & Wesson 9mm handgun, along with gang paraphernalia, and a residue amount of methamphetamine. After being advised of his rights, which he waived, Polk admitted to being in possession of firearms and being a dues collector for a local gang. At the time of the three distributions, Polk was on federal supervised release from a 2014 federal conviction for felon in possession of a firearm out of the Spartanburg Division. Polk is prohibited under federal law from possessing firearms and/or ammunition based upon his prior federal conviction for possession of firearm by a felon and his prior state convictions for burglary 2nd degree and grand larceny.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the York County Multi-jurisdictional Drug Enforcement Unit and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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Atlanta Man Convicted of Meth ConspiracyRead the Press Release
Contact Person: Jim May (803) 929-3000
Columbia, South Carolina. United States Attorney Bill Nettles announced today that a federal jury convicted Alfredo De Jusus Ramirez this afternoon of conspiracy to possess with intent to distribute and distribution of 50 grams or more of actual methamphetamine and 500 grams or more of a mixture containing methamphetamine. United States District Judge J. Michelle Childs had the U.S. Marshal take Mr. Ramirez into custody after the jury returned its verdict, and will sentence Mr. Ramirez after a presentence investigation report has been prepared by the United States Probation Office.
Witnesses testified that Mr. Ramirez was the source of supply for a group of Bamberg meth dealers, who supplied cohorts including members of a motorcycle gang. One witness testified that Mr. Ramirez brought the meth from the Texas area in sealed bean cans. The Drug Enforcement Administration tested the methamphetamine at 96 to 100 percent pure, which reflects that the meth was made in a “super lab” south of the Texas border. The street-name for meth of this purity is “ICE.”
The case was investigated by the Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorneys Jim May and Beth Drake.
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Grand Jury Returns Indictment in Human Trafficking CaseRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ----- United States Attorney Bill Nettles stated today that a Federal Grand Jury in Greenville, South Carolina, returned a multi-count Indictment alleging
- conspiracy to traffic in children by force for the purposes of prostitution in violation of Title 18, United States Code, Section 1594(c),
- substantive counts charging each coconspirator with trafficking in children in violation of Title 18, United States Code, Section 1591, and
- the transportation of minors in interstate commerce with the intent to engage in sexual activity, in violation of Title 18, United States Code, Section 2423.
The following individuals were charged in the indictment: Brandon L. Littlejohn, age 26, D’Shawn C. Pitts, age 19, Dylan L. Patterson, age 19, Michael G. Riddle, age 20, Michael D. Whitaker, age 25, John A. Gossett, III, age, 22, and Bryson L. Stewart, age 23, all of Spartanburg, South Carolina.
The indictment alleges that the defendants recruited minor victims and young women to work for them, and then instructed and supervised the minor victims and young women on how to solicit and charge for commercial sex acts. The indictment also states that the conspirators “would and did physically beat or threaten to physically beat the minor victims and young women to scare and control them.”
U.S. Attorney Nettles said, “Because human trafficking takes a great personal and psychological toll on the victims and society as a whole, this office and our federal and state partners are committed to devoting the resources required so that all allegations of human trafficking in South Carolina are investigated.”
“The defendants stand accused of exploiting under aged girls through a sex trafficking scheme across multiple states," said Special Agent in Charge Nick S. Annan, head of ICE Homeland Security Investigations in Atlanta. "Thanks to some excellent police work by the Spartanburg County Sheriff's Office and my special agents, we have rescued a number of victims and the perpetrators will be brought before the court to face justice."
The maximum penalty the Defendants could face is life imprisonment, and/or a fine of $250,000, and five years of supervised release. The case was investigated by agents of the Department of Homeland Security, Office of Investigations, and the Spartanburg County Sheriff’s Office. The case is assigned to Assistant United States Attorney Bill Watkins of the Greenville office for prosecution.
The United States Attorney stated that all charges in this Indictment are merely accusations, and that all defendants are presumed innocent until and unless proven guilty.
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Federal Grand Jury Returns IndictmentsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
United States Attorney Bill Nettles stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictment(s) against the following:
Anderson Man Indicted
Darrell I. Hardy, age 68, of Anderson, South Carolina, was charged in a 1-count indictment with False Impersonation of an Officer or Employee of the United States, a violation of Title 18, United States Code, Section 912. The maximum penalty Hardy could receive is three (3) years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the Treasury Inspector General for Tax Administration and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina----United States Attorney Bill Nettles stated today that a Federal Grand Jury in Charleston, South Carolina, returned Indictment(s) against the following:
ICE Immigration Enforcement Agent Charged with False Scheme, False Statements, and Obstruction of ICE Proceedings
Clinzy Oliver, Jr., age 38, of Columbia, an Immigration and Customs Enforcement (ICE), Immigration Enforcement Agent, was charged in a 3-count indictment with false scheme, false statements, and obstruction of ICE proceedings, in violation of Title 18, United States Code, Sections 1001(a)(1), 1001(a)(2), and 1505. The maximum penalty Oliver could receive on each count is 5 years imprisonment and a fine of $250,000. The case was investigated by agents of the United States Immigration and Customs Enforcement, Office of Professional Responsibility, and is assigned to Assistant United States Attorney Dean H. Secor of the Charleston office for prosecution.Mr. Nettles stated that the charges in this Indictment are merely accusations and that the defendant is presumed innocent until and unless proven guilty.
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Dr. Dong, GenPhar Inc., and Vaxima, Inc., Convicted of Fraud in Retrial Before U.S. District Court Judge David NortonRead the Press Release
Contact Person: Eric Klumb (843) 727-4381
Columbia, South Carolina ---- United States Attorney William N. Nettles stated today that Dr. Jian Yun Dong, aka John Dong, and the companies which he founded, GenPhar Inc. and Vaxima Inc., were convicted of multiple fraud-based charges following a five day trial in Federal Court that took place June 22 through 25, 2015. The case was submitted for decision to Judge David C. Norton, who issued the verdicts and a written decision today. The case was retried before Judge Norton after a jury hearing the case last November could not reach unanimous verdicts on all counts, although it did find the two corporate defendants guilty of most of the charges. After the two trials, all three defendants have been found guilty of one count of Conspiracy to Commit Grant Fraud, Wire Fraud, Theft of Government Property and Providing False Statements; one count of Theft of Government Funds; and 22 counts of Wire Fraud.
The trial began on November 5, 2014, and concluded on November 14, 2014. Testimony at trial established that federal grant money was obtained by GenPhar and Vaxima for purposes of biodefense research and vaccine development, but was used for other purposes, specifically to construct a commercial office building and pay lobbyists and others who were seeking to secure federal funding for the defendants. Testimony further established that a total of approximately six million dollars were spent on the construction, which included approximately at least three million dollars of improperly diverted grant money.
Mr. Nettles stated, “The real tragedy in this case is that millions of dollars intended for desperately needed vaccine research was diverted into a commercial real estate project. Most of the dedicated and accomplished scientists receiving these grants can be trusted to spend the funds on research, but those that seek to divert the funds to their own benefit need to know that we will pursue charges against them like any other fraudsters.”
The convictions are the result of an investigation conducted by the Department of Health and Human Services Office of Inspector General, the Defense Criminal Investigative Service, the Federal Bureau of Investigation, the U.S. Army Criminal Investigation Command, and the Naval Criminal Investigative Service. Assistant United States Attorneys Eric Klumb and Nathan Williams of the Charleston office prosecuted the case.
#####Columbia Veteran Pleads to Defrauding Veteran's AffairsRead the Press Release
Contact person: William E. Day, II (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Bobby Joe Haynes, age 61, of Columbia, South Carolina has entered a guilty plea in federal court in Columbia, to Theft of Government Funds, a violation of 18 U.S.C. § 641. United States District Judge Terry L. Wooten of Columbia accepted the guilty plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Haynes received medical treatment from VA Medical Center in Columbia, S.C. Veterans are reimbursed for mileage to and from their residence and the medical facility. Haynes was living in Columbia but falsely claimed to be living in Georgetown, S.C. so that he could receive higher mileage payments. Between March 2011 and October 2013 Haynes filed 140 false mileage claims resulting in losses to the Department of Veterans Affairs of $7,488.
Mr. Nettles stated the maximum penalty for Theft of Government Funds is imprisonment for 10 years and/or a fine of $250,000.
The case was investigated by agents of the Department of Veterans Affairs, the Office of Inspector General, and the Criminal Investigations Division. Assistant United States Attorney William E. Day, II of the Columbia office is prosecuting the case.
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Myrtle Beach Man Enters Guilty Plea to Wire FraudRead the Press Release
Contact Person: John C. Potterfield, (803) 929-3000
Florence, South Carolina ---- United States Attorney Bill Nettles stated today that Shayne Harrison Smith, age 47, of Myrtle Beach, South Carolina has entered a guilty plea in federal court in Florence, to Wire Fraud, a violation of 18 U.S.C. § 1343. United States District Judge R. Bryan Harwell of Florence accepted the guilty plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Information presented at the change of plea hearing established that Mr. Smith was involved in a "mortgage rescue scheme." He convinced distressed home owners that he could negotiate better terms of repayment with their lenders. Mr. Smith required the victims to pay him fees which he used for his own benefit. He encouraged some of the home owners to cease communicating with their lenders and stop making payments to the lenders, because he would take care of everything. Mr. Smith never successfully renegotiated any of the mortgages.
Mr. Nettles stated the maximum penalty for Wire Fraud is imprisonment for 30 years and/or a fine of $1,000,000.
The case was investigated by agents of the F.B.I. Assistant United States Attorney John C. Potterfield of the Florence is prosecuting the case.
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Charleston Man Receives 30 Months for Child Pornography PossessionRead the Press Release
Contact Person: Dean Secor (843) 727-4381
Columbia, South Carolina ----United States Attorney Bill Nettles stated today that Daniel L. Maguire, III, age 71, of Charleston, South Carolina, was sentenced on Tuesday, July 21, 2015 [J&C signed 7/22 and filed 7/23] in federal court in Charleston, for possession of child pornography, a violation of Title 18, United States Code, Section 2255A(a)(5)(B). Senior United States District Judge Sol Blatt, Jr., of Charleston, sentenced Maguire to 30 months imprisonment, to be followed by a lifetime term of supervised release. Maguire was also ordered to pay restitution in the amount of $8,000 and a mandatory $100 special assessment fee.
Evidence presented at the change of plea hearing established that an undercover FBI agent was able to access files of child pornography being shared on the internet by a peer-to-peer software user located in Charleston. Agents traced the Internet Protocol (IP) address being used to Maguire’s home in Charleston. Agents then executed a federal search warrant at Maguire’s home and seized two computers and an external hard drive. Agents conducted a forensic examination of the devices and discovered thousands of still images and videos of child pornography, including still images and videos of prepubescent minors engaging in sexually explicit conduct.
The case was investigated by agents of the Federal Bureau of Investigation. Assistant United States Attorney Dean H. Secor of the Charleston office handled the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. Click on the “resources” tab for information about Internet safety education.
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Attorney General Lynch Statement Following the Federal Grand Jury Indictment Against Dylann Storm RoofRead the Press Release
Contact: (202) 514-2007
Washington - Attorney General Lynch released the following statement after the federal grand jury released its indictment against Dylann Storm Roof:
“Good afternoon and thank you for coming.
“I am joined here today by Vanita Gupta, the head of the department’s Civil Rights Division and Mark Giuliano, Deputy Director of the FBI.
“We are here today to announce that a federal grand jury in South Carolina has returned a 33-count indictment against Dylann Storm Roof, charging him with federal hate crimes and firearms charges for killing and attempting to kill African-American parishioners at Emanuel African Methodist Episcopal Church in Charleston, South Carolina, because of their race and in order to interfere with their exercise of their religion.
“As set forth in the indictment, several months prior to the tragic events of June 17, Roof conceived of his goal of increasing racial tensions throughout the nation and seeking retribution for perceived wrongs he believed African Americans had committed against white people.
“To carry out these twin goals of fanning racial flames and exacting revenge, Roof further decided to seek out and murder African Americans because of their race. An essential element of his plan, however, was to find his victims inside of a church, specifically an African-American church, to ensure the greatest notoriety and attention to his actions.
“As alleged, Roof set forth the evening of June 17, 2015 to carry out this plan and drove to the Emanuel African Methodist Episcopal Church in Charleston, South Carolina, known as “Mother Emanuel.” Mother Emanuel was his destination specifically because it was a historically African-American church of significance to the people of Charleston, of South Carolina and the nation.
“On that summer evening, Dylann Roof found his targets, African Americans engaged in worship. Met with welcome by the ministers of the church and its parishioners, he joined them in their bible study group. The parishioners had bibles. Dylann Roof had his 45 caliber glock pistol and eight magazines loaded with hollow point bullets. And as set forth in the indictment, while the parishioners of Mother Emanuel were engaged in religious worship and bible study, Dylann Roof drew his pistol and opened fire on them, ultimately killing nine church members.
“As you know, the state of South Carolina is also prosecuting Roof for the murders, attempted murders and firearms offenses he is alleged to have committed. We commend the state authorities for their tremendous work and quick response. It is important to note, however, that South Carolina does not have a hate crimes statute and as a result, the state charges do not reflect the alleged hate crime offenses presented in the federal indictment returned today.
“The federal indictment returned today charges Roof with nine murders and three attempted murders under the Matthew Shepard and James Byrd Hate Crimes Prevention Act. This federal hate crimes law prohibits using a dangerous weapon to cause bodily injury, or attempting to do so, on the basis of race or color. The Shepard Byrd Act was enacted specifically to vindicate the unique harms caused by racially motivated violence.
“Roof is also charged with nine murders and three attempted murders under a second federal hate crimes statute that prohibits the use or threat of force to obstruct any person’s free exercise of their religious beliefs.
“Finally, Roof has been charged with multiple counts of using a firearm in the commission of these racially motivated murders and attempted murders.
“For these crimes, Roof faces penalties of up to life imprisonment or the death penalty. No decision has been made on whether to seek the death penalty in this case. The department will follow our usual rigorous protocol to thoroughly consider all factual and legal issues relevant to that decision, which will necessarily involve counsel for the defendant Roof. In addition, consultation with the victims’ families is an important part of this decision making process and no decision will be made before conferring with them.
“The family members of those killed at Emanuel AME and the survivors were informed of these federal charges earlier today.
“I also note that this indictment contains allegations and is not evidence of the defendant’s guilt.
“This federal grand jury indictment follows an announcement I made on June 18, 2015, that the Department of Justice was conducting a hate crime investigation into the shooting incident at Emanuel AME. Immediately following the shooting, experienced prosecutors from the U.S. Attorney’s Office in South Carolina and the Civil Rights Division began working closely with the FBI, ATF and state and local law enforcement officials including the South Carolina Law Enforcement Division – or SLED – Charleston Police and the Solicitor’s Office for the Ninth Circuit of South Carolina, in thoroughly investigating these crimes. I would like to the many state and federal law enforcement officials for their dedication and hard work to ensure that this investigation was conducted thoroughly and expeditiously. I would also like to thank South Carolina U.S. Attorney Bill Nettles for his and his office’s tremendous efforts on this case, as well as the dedicated attorneys from the Civil Rights Division.
“In particular, I would like to thank Charleston Solicitor Scarlett Wilson for being such a cooperative and effective partner in this matter. We have a strong working relationship with Solicitor Wilson and her office and we look forward to our continued collaboration as these parallel state and federal prosecutions work their way through their respective court systems.”
Questions?”
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Rock Hill Gang Member Sentenced on Federal Firearm and Ammunition ChargeRead the Press Release
Contact Person: Stacey Haynes (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated that DeMario Ontrey Ware, age 27, of Rock Hill, South Carolina was sentenced today in federal court to 46 months imprisonment with 3 years of supervised release to follow. The sentence is to be served consecutive to the 12 year state sentence Ware is currently serving for armed robbery, burglary 2nd degree, and possession of a firearm in the commission of a violent crime. In February of this year, Ware plead guilty to being a felon in possession of a firearm and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). Senior United States District Judge Cameron McGowan Currie imposed the sentence and ran it consecutive to the current state sentence in light of Ware’s criminal history.
Evidence presented at the earlier change of plea hearing established that on the morning of May 22, 2014, officers with the Rock Hill Police Department Violent Crimes Unit were patrolling when they noticed Ware, a known gang member, on the front porch of a residence on Hickory Lane. Officers knew that Ware had an outstanding warrant for criminal domestic violence, so they approached him and placed him under arrest for that warrant. During a search incident of Ware incident to his arrest, officers located a loaded Bryco .380 caliber handgun in his front pocket. Ware is prohibited under federal law from possessing firearms and/or ammunition based upon his prior federal conviction for armed bank robbery and his prior state convictions for discharging a firearm into a dwelling, and criminal conspiracy to commit assault and battery 1st degree.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Rock Hill Police Department, and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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Four Defendants Sentenced After Cooperation in Pinson RICO TrialRead the Press Release
Contact Person: Nancy Wicker (803) 929-3000
COLUMBIA, SOUTH CAROLINA –Lance Wright, age 49, of Columbia, South Carolina; Michael Bartley, age 51, of Orangeburg, South Carolina; Robert Anthony Williams, age 57, of Tampa, Florida; and Phillip Mims, age 46, of Columbia, South Carolina, were sentenced today in federal court by United States District Judge David C. Norton. The court heard motions by the government for reduced sentences which detailed the defendants’ cooperation and assistance in the prosecution of United States v. Jonathon Pinson, and then imposed the following reduced sentences:
Wright, Williams and Mims: sentenced to 3 years probation, 3 months in a half-way house, ordered to pay $993,777.65 in restitution and a $200 special assessment.
Bartley: sentenced to 3 years probation, 100 hours of community service and a $100 special assessment.
Wright, Bartley, Williams and Mims had previously pled guilty to the following charges:
Bartley: One count of conspiring to use his influence as Chief of Police of South Carolina State University to promote the sale of property to SCSU in exchange for a gratuity, in violation of Title 18, United States Code, Section 371.
Wright, Williams and Mims: One count of conspiring to steal and convert public funds in violation of Title 18, United States Code, Section 371 and one count of bank fraud in violation of Title 18, United States Code, Section 1344.
The charges in these cases were the result of a joint investigation conducted by the Federal Bureau of Investigation, the U.S. Internal Revenue Service – Criminal Investigations, the U.S. Department of Housing and Urban Development – Office of Inspector General, and the South Carolina Law Enforcement Division. Assistant United States Attorneys Nancy Wicker, Jane Taylor, J.D. Rowell and Dewayne Pearson of the Columbia office prosecuted the case.
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Notice of Court ProceedingsRead the Press Release
Contact Person: Nancy Wicker (803) 929-3000
Columbia, South Carolina – Sentencings have been scheduled in United States v. Lance Wright, 3:13-970; United States v. Michael Bartley, 3:13-036, United States v. Robert A. “Tony” Williams, 3:13-971; and United States v. Phil D. Mims, 3:13-971. United States District Court Judge David C. Norton will preside over the proceeding.
WHEN: Tuesday, July 21, 201511:00 a.m. - Wright
WHERE: Hollings Judicial Center 83 Meeting Street
12:00 p.m. - Bartley
2:00 p.m. - Williams
2:30 p.m. - Mims
Courtroom #2
Charleston, SC####
“C-S.T.A.N.D”: Conway Men Enter Guilty Pleas in Federal Drug ConspiracyRead the Press Release
Contact Person: Lance Crick (864) 282-2100
COLUMBIA, South Carolina ---- United States Attorney Bill Nettles, stated today that Marcus Dalton Hemingway and James Earl Spain, II, both of Conway, entered guilty pleas on drug conspiracy charges in federal court in Florence late yesterday afternoon. Hemingway and Spain were indicted earlier this year by a federal grand jury in a superseding indictment charging conspiracy to possess cocaine and crack cocaine. Mr. Nettles stated the penalty for conspiracy to possess cocaine and crack cocaine is a maximum term of imprisonment of 20 years, a fine of $1,000,000, a term of supervised release of at least three years in addition to any term of imprisonment, plus a special assessment of $100.
The facts presented at the change of plea hearing established that the DEA Florence Resident Office, in concert with local law enforcement including the 15th Judicial Circuit Drug Enforcement Unit (DEU), launched an investigation into a cocaine/crack distribution organization operating in and around the Conway, South Carolina, area. Defendant Marcus Hemingway headed this drug distribution organization—an organization that many associated with the moniker “LAB CITY.” The evidence in the case includes historical witness statements as well as undercover drug purchases and seizures of drugs as well as seizures of U.S. currency. The investigation uncovered a conspiracy ultimately responsible for the distribution of multi-kilogram quantities of cocaine as well as multi-ounce quantities of crack cocaine in the Conway, SC, area, and elsewhere, dating back to approximately the year 2000.
During the takedown on April 9, 2015, law enforcement effected state and federal arrests and executed federal search warrants on multiple residences in the Conway area, seizing over $50,000 in cash. Agents also seized multiple firearms, to include an AK47, from the residence where Marcus Hemingway was arrested. Later that same day, agents seized $106,000 in cash from a safe in a storage unit in the Myrtle Beach area—money being held by a Hemingway relative for Marcus Hemingway. Additionally, a kilogram of what field-tested positive as cocaine was seized on that date from co-conspirator James Earl Spain II. Spain told law enforcement that he was holding the kilogram for Marcus Hemingway.
The guilty pleas today follow a year-long undercover investigation by local, state, and federal law enforcement. The investigation is part of the “C-S.T.A.N.D.” program launched in Conway in late 2013. The program, an acronym for “Conway—Starting Toward a New Direction” is an application of the Drug Market Intervention program, coordinated by the United States Attorney’s Office, and recently utilized in the Charleston Farms community in North Charleston beginning in 2011.
The initiative is a unified, proactive approach that bands together local, state, and federal law enforcement with community partners in an effort to eradicate open drug dealing in a multiple block area of Conway. In addition to the federal and state arrests effected on April 9, 2015, seven individuals, who are considered by law enforcement to be lower-level targets, were not arrested that day—instead they received notice to attend a public “call in” meeting with the community and law enforcement held the week after the arrests at the Conway Recreation Center. All seven candidates attended the meeting, entered the “C-S.T.A.N.D.” program, and currently, all are slated for graduation in late August. The Conway community, law enforcement, and family members are working with the seven C-S.T.A.N.D. participants to support the candidates in a disciplined effort to engage in law-abiding life choices to include completing their education and obtaining employment.
Members of the law enforcement team involved in this initiative includes the Conway Police Department, the 15th Circuit Drug Enforcement Unit, the Horry County Police Department, the South Carolina Law Enforcement Division (SLED), the Florence Police Department, the 15th Circuit Solicitor’s Office, the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Drug Enforcement Administration (DEA). This case is assigned to Assistant United States Attorney Lance Crick of the Greenville office and Assistant United States Attorney Chris Taylor of the Florence office.
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Former South Congaree Chief of Police SentencedRead the Press Release
Contact Person: Jay Richardson (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Jason Amodio (46) of Lexington, South Carolina was sentenced to eight months of home confinement and four years of probation. Senior United States District Judge Joseph F. Anderson Jr. sentenced Amodio in federal court in Columbia, for Lying to a Federal Grand Jury, a violation of 18 U.S.C. § 1623. Evidence established that during a joint federal and state investigation into illegal gambling, extortion under color of law, mail and wire fraud, and related public corruption in Lexington County, Amodio appeared before a federal grand jury. Asked about the purpose of a particular check payable to Amodio, Amodio claimed that the check was a loan. In fact, Amodio knew this was false and that the check was an improper payment from an attorney in Lexington. Amodio had assisted in convincing a family to hire that attorney to file a civil lawsuit after a car wreck had left one member of the family dead and one injured. When the attorney received a fee in return for his representation, that attorney then paid Amodio through an intermediary.
United States Attorney Bill Nettles stated, “We must ensure that the public has confidence that officials have integrity and are truthful. Mr. Amodio transported himself from the Chief of Police to a felon because he betrayed this basic tenant.”
The Court arrived at the sentence by factoring in the cooperation that Mr. Amodio has provided and is currently providing in an on-going public corruption probe. Additionally, Mr. Amodio has agreed to plead guilty in state court to a charge of misconduct in office. This case is part of a joint investigation of the FBI, SLED, the South Carolina Attorney General’s Office, and the United States Attorney’s Office into public corruption and is being prosecuted by Assistant United States Attorneys Jay N. Richardson and Jim May and Assistant Deputy Attorney Generals Creighton Waters and Brian Petrano.
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Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina----United States Attorney Bill Nettles stated today that a Federal Grand Jury in Charleston, South Carolina, returned Indictment(s) against the following:
Area Couple Indicted for Manufacturing Counterfeit Gift Cards and Identity Theft
Javon Richardson, age 32, of Ladson, and Latoya Simpson, age 31, of North Charleston, were charged in a 2-count Indictment with Making Counterfeit Gift Cards and Aggravated Identity Theft, a violation of Title 18, United States Code, Sections 1029 and 1028A. The maximum penalty that Richardson and Simpson could receive is 10 years imprisonment. The case was investigated by agents of the United States Secret Service and the North Charleston Police Department and is assigned to Assistant United States Attorney Rhett DeHart of the Charleston office for prosecution.Guatemalans Charged with Conspiracy to Transport Illegal Aliens
Juan Gomez-Calmo, age 30, and Romeo Sales-Lopez, age 32, both of Guatemala, were charged in a 2-count Indictment with conspiracy to transport illegal aliens and transportation of illegal aliens within the United States, in violation of Title 8, United States Code, Sections 1324(a)(1)(A)(ii), (a)(1)(A)(v)(I), and (a)(1)(B)(i). The maximum penalty Gomez-Calmo and Sales-Lopez could each receive is 10 years imprisonment and a maximum fine of $250,000 per count. The case was investigated by agents of the United States Immigration and Customs Enforcement's Homeland Security Investigations, and is assigned to Assistant United States Attorneys Dean H. Secor and Matt Austin of the Charleston office for prosecution.Mr. Nettles stated that the charges in these Indictments are merely accusations and that the defendants are presumed innocent until and unless proven guilty.
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Federal Grand Jury Indictment(s)Read the Press Release
Contact Person: Beth Drake (803) 929-3000
United States Attorney Bill Nettles stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictment(s) against the following:
Gaffney Man Indicted for Food Stamp Fraud
Mickey Dean Allison, Jr., age 39, owner of Original Allison’s Produce, from Gaffney, South Carolina, was charged in a two-count indictment. Allison was charged with Food Stamp Fraud, a violation of Title 7, United States Code, Section 2024, and Defrauding the United States Government, a violation of Title 18, United States Code, Section 641. The maximum penalty Allison could receive is 20 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the Office of Inspector General for the USDA and Cherokee County Sheriff's Office and is assigned to Assistant United States Attorney Jamie Lea Schoen of the Greenville office for prosecution.The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Fourteen Plead Guilty in Mail Theft ConspiracyRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Wendy B. Sisk, age 44, Crystal D. Hudson, age 33, both of Honea Path, Jason Tomsha, age 46, of Greenville, Shannon D. Ashworth, age 33, Tonya M. Reid, age 38, John T. Eskew, age 28, Casey Hembree, age 20, Justin D. Powers, age 24, Whitney Strickland, age 27, Danny C. Buford, age 47, Ashley N. Burdette, age 29, James M. Day, age 44, Andrew C. Keaton, age 23, and Bonnie Reid, age 57, all of Anderson, pled guilty yesterday in federal court in Anderson, to conspiracy to steal United States mail, a violation of Title 18, United States Code, Section 371. United States District Timothy M. Cain, of Anderson accepted the pleas and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that the United States Postal Inspection Service, the Anderson County Sheriff’s Office, the Anderson City Police Department, and other local agencies had undertaken a long-term investigation into the theft of mail in and around Anderson County. It was discovered that an organization existed that regularly stole mail from residential boxes, sorted the stolen mail for checks and personal identifying information, created altered or counterfeit checks, and created false identification documents. Multiple counterfeit and altered checks were passed throughout the upstate. Law enforcement estimates that the losses from the activities of the conspiracy exceed $160,000. Most of the fraud was conducted in an effort to obtain funds to purchase methamphetamine. Since the arrest of the Defendants in April 2015, Postal Inspectors report that complaints of mail theft in Anderson County have markedly dropped.
Mr. Nettles stated the maximum penalty the Defendants can receive is a fine of $250,000 and/or imprisonment for 5 years, plus a special assessment of $100.
The case was investigated by agents of United States Postal Inspection Service, the Anderson County Sheriff’s Office, the Anderson City Police Department, and other local law enforcement agencies. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
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Covan World Wide Moving, Inc., Coleman American Moving Services, Inc. and other related entities Settle False Claims Act Cases for $5,000,000.00Read the Press Release
Contact Person: Bill Nettles (803) 929-3000
COLUMBIA, South Carolina ---- United States Attorney Bill Nettles announced today that the United States Attorney's Office for the District of South Carolina, settled claims of fraud with Covan World Wide Moving, Inc., Coleman American Moving Services, Inc., and other related entities with home offices in Dothan, Alabama. The United States contended that Covan and others increased the weights of shipments and storage of servicemember’s and federal employee’s household goods and then submitted claims for payment to the government for the inflated weights.
The investigation began with the filing of whistleblower lawsuits called qui tams lawsuits under the False Claims Act. The suits were filed by employees of Covan’s Augusta, Georgia facility who witnessed the falsification of weight tickets ultimately used to bill the government. The False Claim Act allows the government to recover actual damages and penalties of three times the actual damages and up to $11,000 per false claim. This settlement includes repayment of actual damages and penalties.
The False Claims Act allows individuals to file lawsuits with allegations that fraud has been committed against the federal government on behalf of the government. Whistleblowers, referred to as Relators in the False Claims Act, are entitled to share in any recovery received by the government. In this case, the two relators collectively will receive 25% of the funds of the settlement or $1,250,000.00 plus they are entitled to attorney fees.
Mr. Nettles said “fraud on the government is high priority in this office. Monies paid to Covan for inflated weights could have been used for the benefit of our servicemembers. Our aggressive pursuit of this case is further proof of our commitment to combat fraudulent claims made against the Federal Government.”
This case was handled by Assistant United States Attorneys Fran Trapp, Jennifer Aldrich and Stan Ragsdale. The case was investigated by the Defense Criminal Investigative Service, the U. S. Army Criminal Investigative Command, and the Office of the Inspector General for General Services Administration.
Frank Robey, the director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit said "We are very pleased with today's announcement and the result of all the hard investigative work and agency cooperation regarding this investigation. We would also like to thank the honest citizens who came forward and did the right thing which allowed us to fully investigate these allegations and reach today's settlement."
John F. Khin, Special Agent in Charge of the DCIS Southeast Field Office stated "The transportation of household goods is essential to the military's logistics program, enabling our warfighters and their families to get to station and ready to assume their duties, wherever on the globe they may be assigned. The Defense Criminal Investigative Service (DCIS) remains vigilant to ensure DOD programs are free from fraud and those who wish to take advantage of the U.S. Military."
General Robert C. Erickson, General Services Administration Acting Inspector General said "I appreciate all of the hard work on this case. We will continue working with law enforcement partners to investigate allegations of fraud against the United States."
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South Carolina Man Sentenced to Eight Years in Prison for Shooting a DEA Special AgentRead the Press Release
Contact Person: Bob Page (404) 581-6016
Columbia, SC - Joel Perrin Robinson has been sentenced to eight years in prison for shooting a DEA special agent serving a search warrant at Robinson's house. Agents had obtained the warrant to search his home for chemicals used to manufacture PCP.
“This defendant shot an agent even though the agent was wearing a vest that clearly displayed the word “POLICE” in large, bold letters,” said Acting U.S. Attorney John Horn. “Instead of returning fire, the agents took the defendant into custody without further incident. Their poise under fire reminds us of the challenges that law enforcement agents face every day while serving and protecting the community.”
“This investigation is a reminder of the dangers that law enforcement officers endure daily while protecting and serving the public,” said Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division. “Through training and tactics, the officers in this case showed poise by not returning fire, despite being fired upon. Instead, they identified and neutralized the threat. This investigation was successfully prosecuted because of the collective effort between DEA, federal, state and local law enforcement and the United States Attorney’s Office.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: On July 6, 2013, a house in Fairburn, Georgia burned to the ground. It burned for two days, and when investigators were finally able to enter the house, they found the charred remains of a large, clandestine phencyclidine (“PCP”) laboratory. Investigation into those responsible for the fire led DEA agents to Robinson’s residence.
On October 20, 2014, DEA agents executed a search warrant at Robinson’s Orangeburg, South Carolina home for chemicals used to manufacture PCP. The agents announced their presence by sounding sirens, flashing lights, and yelling “Police, Search Warrant!” When the agents entered, Robinson grabbed a laser-sighted pistol and fired it into a wall without ever identifying a target.
Robinson then put on slippers, walked to a door leading out to a swimming pool, and opened it. Standing in the pool area were two DEA agents. Robinson activated the laser sight on his weapon and aimed it at one of those agents, who was wearing a ballistic vest with the word “POLICE” written across the front in yellow letters. Robinson shot that agent, hitting him in the arm, causing serious injury. None of the other 19 DEA agents at the scene fired back at Robinson, but moved quickly to take Robinson into custody.
Joel Perrin Robinson, 33, of Orangeburg, S.C., was sentenced Monday July 6, 2015, to eight years in prison to be followed by three years of supervised release by J. Michelle Childs, U.S. District Judge for the District of South Carolina. He was ordered to pay restitution in the amount of $82,518.31, in addition to any medical bills the DEA Special Agent incurs over the next 90 days. On February 9, 2015, Robinson pleaded guilty to a charge of using a deadly weapon to assault an officer serving a search warrant.
Agents of the Drug Enforcement Administration and the Federal Bureau of Investigation investigated this case. Valuable assistance was also provided by the Georgia Bureau of Investigation, Georgia State Fire Marshal’s Office, Fulton County Fire Department, Atlanta Fire Department, Snellville Police Department, Henry County Sheriff’s Department, Clayton County Sheriff’s Office, South Carolina Law Enforcement Division (SLED), Richland County Sheriff’s Department, Lexington County Sheriff’s Department, Kershaw County Sheriff’s Department, Orangeburg County Sheriff’s Office, Fifth Circuit Solicitor’s Office, and the Columbia Police Department.
Assistant United States Attorneys Michael Herskowitz, Vivek Kothari, Jennifer Whitfield, and Michael J. Brown, who have been admitted as Special Assistant U.S. Attorneys in the District of South Carolina, prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
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Gaston Man Sentenced in Counterfeit Erectily Dysfunction Medication CaseRead the Press Release
Contact Person: Dewayne Pearson (803) 929-3000
Columbia, SC - Bill Nettles, United States Attorney for the District of South Carolina, announced today that Arthur Fleming Moler, age 51, of Gaston, was sentenced to 78 months imprisonment for his role in trafficking more than five million dollars’ worth of counterfeit medications. Facts presented during the trial showed that Moler sold and shipped counterfeit goods and medications, including illegal replicas of Viagra and Cialis, from his Columbia based business, South Carolina Liquidations.
According to testimony presented during the case, United States Customs agents discovered counterfeit golf equipment being shipped from China to South Carolina Liquidations at 1215 Shop Road in Columbia, South Carolina. When investigators entered the warehouse, they discovered hundreds of counterfeit designer handbags, sunglasses, electronic equipment and over 230,000 counterfeit erectile dysfunction pills.
The case was investigated by the Department of Homeland Security - Immigration and Customs Enforcement, the South Carolina Secretary of State’s Office and the United States Postal Inspection Service and was prosecuted by Assistant United States Attorney T. DeWayne Pearson of the Columbia office.
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Washington, D.C. Man Sentenced to 10 Years on Federal Importation of Heroin ChargeRead the Press Release
Contact Person: Stacey Haynes (803) 929-3000
Columbia, South Carolina---- United States Attorney Bill Nettles stated that Kenneth Crawford, Jr., age 42, of Washington, D.C. and formerly of Columbia, South Carolina, was sentenced to 120 months imprisonment today in federal court in Columbia, South Carolina, after earlier pleading guilty to importation of 100 grams or more of heroin, in violation of Title 21, United States Code, Sections 952, 960(a)(1), 960(b)(2), and Title 18, United States Code, Section 2. Senior United States District Judge Joseph F. Anderson, Jr., of Columbia imposed the sentence, which will be followed by 8 years of supervised release.
Crawford was one of 10 defendants charged in April 2014, following a series of court-authorized, DEA-monitored wiretaps over several telephones in the Columbia area. The investigation revealed that a group of individuals in the Columbia area were obtaining heroin from various sources outside of South Carolina and then distributing it in the Midlands. Evidence indicated that Crawford was involved in the 2011 and 2012 importation of heroin into the United States from India. Several packages destined for Crawford and containing heroin were intercepted by law enforcement during the investigation. Evidence further showed that the co-defendants later obtained heroin in New York and transported it back to Columbia where it was distributed. The New York heroin suppliers have been charged by the Eastern District of New York for their role in the drug conspiracy. Three of Crawford’s co-defendants have plead guilty to their role in the drug conspiracy here in South Carolina and have been sentenced as follows: Charles Bradley, age 32, of Columbia was sentenced to 57 months imprisonment with 6 years of supervised release to follow; Anthony Glover, age 40, of Columbia was sentenced to 120 months imprisonment with 8 years of supervised release to follow; and Jessany Lyons, age 25, of Far Rockaway, New York, was sentenced to 37 months imprisonment with 3 years of supervised release. Co-defendant Eric Bradley has plead guilty and is currently awaiting sentencing. One co-defendant is awaiting trial and is presumed innocent. Four other co-defendants charged in the indictment remain fugitives.
The case was investigated by the Drug Enforcement Administration’s (DEA) High Intensity Drug Task Force, which is comprised of agents and officers from the DEA, Homeland Security Investigations, United States Secret Service, Columbia Police Department, Richland County Sheriff’s Department, South Carolina State Law Enforcement Division (SLED), Lexington County Sheriff’s Department, Kershaw County Sheriff’s Department, Orangeburg County Sheriff’s Department, and the Fifth Circuit Solicitor’s Office. Assistant United States Attorney Stacey D. Haynes of the Columbia United States Attorney’s Office prosecuted the case.
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Two Plead Guilty to Debt Elimination SchemeRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Jeffrey Scott Green, age 53, and Lisa Flaugher-Green, age 52, both of Easley, pled guilty today in federal court in Greenville, to a conspiracy to defraud, a violation of Title 18, United States Code, Section 1349. Senior United States District Judge Henry M. Herlong, Jr., of Greenville accepted the pleas and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that this was an Electronic Funds Transfer (“EFT”) debt elimination case. Various branches of the Sovereign Citizen movement, which denies the jurisdiction and authority of the federal government, teach that they can discharge debts by presenting a check written off a closed account. The debtor writes on the check “EFT Only for discharge of debt.” On the back he writes “authorized representative without recourse.” Sovereign-Citizen groups falsely teach that if the creditor accepts the instrument then the debt is discharged even though no money ever changes hands. The Defendants were part of a group that endorsed the use of EFT instruments.
It was a part of the scheme and artifice to defraud that Jeffrey Scott Green and Lisa Flaugher-Green wrote checks on closed accounts and noted on the checks “EFT only for discharge of debt.” They then would mail these bogus “EFT instruments” and accompanying documents to creditors in an effort to trick the creditors into issuing documents noting that the debt was paid in full. Once the creditor discovered the scam, Defendants would refuse further payment on the grounds of a discharge procured by “EFT instruments.” Agents estimate that the Defendants attempted to eliminate over half a million dollars in debt using the scheme.
Mr. Nettles stated the maximum penalty the Defendants can receive is a fine of $250,000 and/or imprisonment for 20 years, plus a special assessment of $100.
The case was investigated by agents of the Federal Bureau of Investigation, the Spartanburg County Sheriff’s Office, and the Greenville County Sheriff’s Office. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
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Attorney General Loretta Lynch Delivers Remarks at the Press Conference to Announce a National Medicare Fraud TakedownRead the Press Release
Contact: (202) 514-2007
Remarks as prepared for delivery
WASHINGTON, D.C.
Good morning. Before we begin today’s announcement, I want to take a moment to address the heartbreaking and deeply tragic events at Emanuel AME Church in Charleston, South Carolina – a crime that has reached into the heart of that community. The Department of Justice has opened a hate crime investigation into this shooting incident. The FBI, ATF, U.S. Marshals Service, Civil Rights Division and U.S. Attorney’s Office are working closely with our state and local partners, and we stand ready to offer every resource, every means and every tool that we possess in order to locate and apprehend the perpetrator of this barbaric crime. Acts like this one have no place in our country. They have no place in a civilized society. And I want to be clear: the individual who committed these unspeakable acts will be found and will face justice.
As we move forward, my thoughts and prayers – and those of our entire law enforcement community, here at the Department of Justice and around the country – are with the families and loved ones of the victims in Charleston. Even as we struggle to comprehend this heartbreaking event, I want everyone in Charleston – and everyone who has been affected by this tragedy – to know that we will do everything in our power to help heal this community and make it whole again.
I encourage the people of Charleston and the wider area to continue circulating the photos of the alleged perpetrator and report any tip, no matter how minor, to the tip line, which can be reached at 1-800-CALL-FBI.
Today, I’m joined by Secretary [Sylvia] Burwell from the Department of Health and Human Services; Director [Jim] Comey of the FBI; Assistant Attorney General [Leslie] Caldwell of the Justice Department’s Criminal Division; Inspector General [Daniel] Levinson of the HHS Office of Inspector General; and Deputy Administrator and Director Dr. [Shantanu] Agrawal of the Centers for Medicare and Medicaid Services in announcing a major advance in the federal government’s fight against fraud in our nation’s health care system.
Over the last three days, as part of a coordinated, nationwide takedown, the Medicare Fraud Strike Force – a joint initiative of the Departments of Justice and Health and Human Services comprising federal, state and local investigators and law enforcement officials from across the country – joined seven additional U.S. Attorney’s Offices in charging or unveiling charges against 243 defendants in 17 federal districts for their alleged participation in Medicare fraud schemes involving approximately $712 million. This is the largest takedown in the Strike Force’s eight-year history. It is the largest criminal health care fraud takedown in the history of the Department of Justice. And it adds to an already remarkable record of enforcement.
The defendants charged include doctors, patient recruiters, home health care providers, pharmacy owners, and others. They are accused of an array of serious crimes ranging from conspiracy to commit health care fraud to wire fraud to money laundering. They billed for equipment that wasn’t provided, for care that wasn’t needed, and for services that weren’t rendered. In one of the more egregious allegations of exploitation of both the Medicare system and vulnerable patients, the owners of a mental health facility in Miami billed for intensive psychotherapy sessions that resulted in tens of millions in reimbursements for the doctors based on treatment that was nothing more than moving patients to different locations. Several of these patients suffered from illnesses like Alzheimer’s and dementia and were unable even to communicate with their supposed caregivers.
Further, nearly 50 of the defendants in this takedown are charged with fraud related to the Medicare prescription drug benefit program known as Part D, which is the fastest-growing component of the Medicare program overall. One owner of a health care provider in the Southern District of Florida received $1.6 million from Medicare Part D for prescription drugs the provider never purchased and never dispensed. Another defendant – a doctor in the Eastern District of Michigan – is alleged to have prescribed unnecessary narcotic pain medications to patients in exchange for the use of their identification information to generate false billings. Patients who attempted to withdraw from the scheme were threatened with loss of access to prescription narcotics. Having deepened these patients’ addiction, the doctors then used that addiction to keep patients bound to their scheme. Taken in total, today’s action represents the first large-scale effort to focus on Medicare Part D fraud – and demonstrates an expanded federal focus on this important issue.
The charges we are announcing today are the culmination of a truly national effort, involving approximately 900 law enforcement personnel acting in concert to execute a set of highly complex and highly coordinated law enforcement activities stretching across the country from Florida to Alaska. This takedown, like those before it, would not have been possible without the key partnerships forged by the Strike Force over the last eight years among federal, state, and local officials, and the cooperation spurred by the joint initiative known as the Health Care Fraud Prevention and Enforcement Action Team, or HEAT, that was launched by DOJ and HHS in 2009. As a result of Strike Force operations since 2007, we’ve filed charges against more than 2,300 individuals, accounting for over $7 billion in Medicare losses. This is a crucial part of the department’s health care fraud enforcement efforts, which include recovery of a total of $15.3 billion through False Claims Act cases involving fraud against federal health care programs since 2009.
Those are extraordinary figures and they reflect our administration-wide commitment to safeguard precious public resources, to rid our health-care systems of fraud and abuse and to sustain the integrity of programs that are essential to the public welfare. In the days ahead, we will continue our focus on preventing wrongdoing and prosecuting those whose criminal activity drives up medical costs and jeopardizes a system that our citizens trust with their lives. The Department of Justice is prepared – and I am personally determined – to continue working with our federal, state and local partners to bring about the vital progress that all Americans deserve.
I want to thank all of the law enforcement officials who were part of the team that made this sweeping takedown possible. Their tireless efforts enabled us to move quickly and aggressively and their inspiring collaboration will be a model for us going forward.
At this time, I’d like to turn things over to Secretary [Sylvia] Burwell, who has been a dedicated leader and indispensable partner in this important work and who will provide additional details on today’s announcement.
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DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
Lancaster Men Sentenced for Heroin Conspiracy Involving More Than Three-And-A-Half Pounds of HeroinRead the Press Release
Contact Person: Jay Richardson (803) 929-3000
Columbia, South Carolina ? United States Attorney Bill Nettles announced today that Joseph Shawn Chasteen (26) and Cody Dean Howard (20) were sentenced for their involvement in a heroin conspiracy to distribute more than three-and-a-half pounds of heroin. United States District Judge J. Michelle Childs sentenced Chasteen to ten years in federal prison and Howard to nine years.
In February 2014, a joint investigation by ATF, SLED, and the Lancaster County Sheriff’s Office led officers to a residence in Indian Land that was suspected to be involved in a heroin distribution conspiracy. The investigation revealed that persons involved in the conspiracy had obtained a large quantity of heroin in Charlotte and intended to distribute the heroin in Lancaster County. After days of surveillance, officers thwarted the conspiracy after only a small quantity of the heroin was distributed, arresting Chasteen and Howard in possession of more than 3 ½ pounds of heroin along with a sawed-off shotgun.
The case was investigated as part of the ongoing cooperation between the Lancaster County Sheriff, SLED and the Bureau of Alcohol, Tobacco, Firearms, and Explosives to remove violent drug dealers from the streets of Lancaster County. The case was prosecuted by Assistant United States Attorney Jay N. Richardson.
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Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Beth Drake (803) 929-3061
Columbia, South Carolina----United States Attorney Bill Nettles stated that a Federal Grand Jury in Charleston, South Carolina, returned Indictment(s) against the following:
Three Indicted in Jewelry Store Robberies
Columbia, South Carolina ---- United States Attorney Bill Nettles announced today an indictment charging Charles Eloys Johnson, 35, of San Leandro, California; Aquabeus Moore, age 34, of Riverdale, Georgia; and Jerry Harbin, age 29 of Antioch, California, with their roles in two separate jewelry store robberies.
The indictment alleges that all three defendants conspired to rob Sylvan Jewelers in Columbia, SC on February 19, 2015 as well as MP Demetre Jewelers in Charleston, SC on March 4, 2015. The three are also charged with robbing those locations, on those dates, as well as possessing a firearm during the respective robberies. The conspiracy and robbery counts carry up to twenty years imprisonment under 18 U.S.C. § 1951(a) and the gun charges carry a mandatory consecutive five years imprisonment under 18 U.S.C. § 924(c).
The indictment is the result of an investigation conducted by the Federal Bureau of Investigations, City of Charleston Police Department and Columbia Police Department. Assistant United States Attorney Nathan Williams of the Charleston office is prosecuting the case.
Mr. Nettles stated that the charges in this Indictment are merely accusations and that the defendants are presumed innocent until and unless proven guilty.
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Director of the University of South Carolina’s Center for Manufacturing and Technology Pleads Guilty to FraudRead the Press Release
Contact Person: Winston Holliday (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Gail Shurling, 62, has entered a guilty plea in federal court in Columbia to Wire Fraud, a violation of 18 U.S.C. § 1343. United States District Judge Mary Geiger Lewis of Columbia accepted the guilty plea and will impose Shurling’s sentence after the U.S. Probation Office prepares a presentence report.
Evidence presented at the change of plea hearing established that Shurling was the Director of the Center for Manufacturing and Technology (CMAT) at the University of South Carolina. As director, Shurling submitted fraudulent documentation that allowed CMAT to obtain federal grant money. The fraudulent documentation indicated that work was completed for the center when it had not been. Additionally, Shurling approved contracts and payments to shell corporations that were controlled by friends, family members, and herself for work that was not completed. In total, Shurling submitted approximately $336,000 worth of fraudulent documentation to the University, the Government, and to the entity responsible for administering the grant money.
United States Attorney Bill Nettles stated, "Public corruption is not limited to elected officials, it extends to anyone who misuses the public's money or abuses the public's trust. The U.S. Attorney's Office, along with our law enforcement partners, will continue to fight public corruption in all its forms.”
Special Agent in Charge Duane Townsend of the United States Department of Commerce, Office of the Inspector General, commented, “the cooperative effort leading to this prosecution is yet another example of how Department of Commerce, Office of Inspector General’s Special Agents work diligently to disclose any criminal activity affecting Department-funded activities. This case will serve to bring to justice another perpetrator of fraud, recover taxpayer funds, and most importantly, serve as a deterrent to those who might consider abusing programs intended to benefit the public for personal enrichment. We very much appreciate the cooperation of the United States Attorney’s Office for supporting us in this mission.”
Mr. Nettles stated the maximum penalty for Wire Fraud is imprisonment for 20 years and/or a fine of $250,000.
The case was investigated by agents of the Office of the Inspector General, Department of Commerce, and the FBI. Assistant United States Attorney Jim May of the Columbia office is prosecuting the case.
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Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Beth Drake (803) 929-3061
United States Attorney Bill Nettles stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictment(s) against the following:
Ten Individuals Charged with Conspiracy to Defraud the United States. The following individuals were charged in a single-count Indictment with conspiracy to defraud the United States, in violation of Title 18, United States Code, Section 371.
Richard K. Rouse, age 44, of Donalds, South Carolina
Bernard Williams, age 50, of Clinton, South Carolina
Carlton C. Fuller, age 47, of Cross Hill, South Carolina
Earl J. Stewart, age 57, of New Orleans, Louisiana
James W. Reeder, age 45, of Joanna, South Carolina
Paul J. Gibson, age 60, of Johnston, South Carolina
Willie L. Fuller, age 58, of Greenwood, South Carolina
Leonard T. Hawthorne, age 50, of Clinton, South Carolina
Meredith Q. Williams, age 52, of Greenwood, South Carolina
Clarence Holloway, age 58, of Troy, South Carolina
The maximum penalty each could receive is five years imprisonment and a fine of $250,000.00. The case was investigated by agents of the Department of Veterans Affairs, Office of Inspector General, and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.
Anderson County Woman Indicted for Delay of Mail. Georgia L. Coker, age 22, of Belton, South Carolina, was charged in a single-count Indictment with delay of mail by a postal employee, a violation of Title 18, United States Code, Section 1703. The maximum penalty Coker could receive is five years imprisonment and a fine of $250,000.00. The case was investigated by agents of the United States Postal Service, Office of Inspector General, and is assigned to Assistant United States Attorney David C. Stephens of the Greenville office for prosecution.
Greenville Man Indicted on Drug Charges. Keith E. Smith, age 36, of Greenville, South Carolina, was charged in a single-count Indictment with possessing with intent to distribute controlled substances, a violation of Title 21, United States Code, Section 841(a)(1). The maximum penalty Smith could receive is a minimum term of imprisonment of ten years and a maximum term of life imprisonment and a fine of $8,000,000. The case was investigated by agents of the Drug Enforcement Administration and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.
The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Pawley’s Island Contractor Sentenced for Conspiracy to Commit Money LaunderingRead the Press Release
Contact Person: William E. Day, II (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Marlon Davis Weaver, age 55, of Pawley’s Island, South Carolina was sentenced in federal court in Florence, for conspiracy to launder money, a violation of 18 U.S.C. § 1956(h). United States District Judge R. Bryan Harwell imposed a sentence of 12 months and 1 day incarceration after granting the government’s motion for a reduced sentence based on assistance Weaver had provided in the prosecution of others. The Judge also ordered Weaver to pay $1,200,000 in restitution and to serve 3 years supervised release.
Evidence presented at the change of plea hearing established that Weaver was the president and owner of Weaver Company, Inc., a construction company which was located in Conway, SC. In 2008, the company was awarded a contract with the South Carolina Department of Transportation [SCDOT], to perform paving and asphalt operations on a road construction project on Interstate 95. Weaver Co. was required to supply a performance and payment bond and general indemnity agreement in order to work on the project. SafeCo Insurance Company of America sold, wrote and acted as a surety on the bond. SafeCo required that Marlon Weaver agree to reimburse them if SafeCo suffered any losses as a result of issuing bonds to the company. He provided a financial statement reflecting assets that SafeCo would be entitled to if Weaver Co. caused losses. Reflected on this financial statement was Weaver’s investment in a company, Gold & Silver, LLC., and his one-fifth interest in Bucks Port Marina held by Weaver Five, LLC.
On November 20, 2009, the contractor for the SCDOT informed Weaver and SafeCo that it declared Weaver Co. in default of the contract under the bond resulting in SafeCo being required to pay approximately $6,000,000.00 to SCDOT. Weaver backdated documents to make it appear that he had transferred his interest in these assets to his daughters on September 1, 2009, prior to defaulting on the project, when in fact Weaver remained in control of the assets at all times. Weaver mailed these fraudulent documents to SafeCo’s attorney, who was representing the insurance company in a civil suit against Marlon Weaver and others. These documents were received by SafeCo on or about 12/18/2009.
Gold & Silver, LLC. was an investment business owned and operated by Archie Evans, which invested in the futures market. To make it appear that Weaver had transferred his investment in Gold & Silver to his daughter, Jena Weaver, prior to SafeCo incurring losses, Evans agreed to back date documents to reflect that Weaver’s investment was transferred to her September 1, 2009. These documents were also mailed to SafeCo’s attorney on April 26, 2010.
Weaver hired Attorney Thad Viers to represent him in the civil case filed against him by SafeCo. Weaver informed Viers that he was trying to hide his assets from SafeCo. On December 1, 2009, Weaver and Viers entered into a written legal fee/service contract which reflects a nonrefundable retainer fee of $500,000. Weaver gave Viers $500,000 in the form of two cashier’s checks, one in the amount of $490,000 and the other in the amount of $10,000. Only the $10,000 check was payment for the retainer fee. The $490,000 was money that Weaver was attempting to conceal from SafeCo. The source of the $500,000 was funds that Weaver had pulled out of Weaver Company to prevent SafeCo from getting it. Viers deposited the $490,000 cashier’s check into his operating account on 12/4/2009, then immediately wrote a check to Archie Evans Ministries for $400,000. The $400,000 was additional money that Weaver was secretly investing with Evans’ company, Gold & Silver. The difference of $90,000, Viers was to deposit into his campaign account. Viers was running for election for a seat in the United States House of Representatives, and wanted his competitors to believe that he had a lot of support so they would drop out of the race. After earning approximately $30,000 in legal fees, Viers returned the remainder of the money to Weaver.
On January 21, 2010, BEJ, LLC. was formed and incorporated to conceal the proceeds from the sale of Weaver’s interest in the marina he had previously pledged as collateral to SafeCo. The marina was sold in February 2010 and Weaver received approximately $501,000. Weaver laundered these funds through several bank accounts to include a bank account set up in the name BEJ, LLC. Between May 18, 2010 and July 22, 2010, Weaver withdrew $400,000 from the BEJ, LLC. account of which approximately $375,000 was converted to cashier’s checks and cashed. This cash was given to Archie Evans in increments which Evans structured into his bank accounts to avoid a regulatory bank filing.
In January 2011, Thaddaeus Viers set up a trust account at Weaver’s request and agreed to have funds wired or deposited into the account by Evans. Once the funds were credited to the account, Viers contacted the bank to authorize withdrawal of the funds by Weaver. Each withdrawal authorized by Viers was for $10,000 or more. Weaver withdrew the funds purchasing numerous cashier’s checks just under the $10,001 regulatory bank filing reporting requirement, ranging from $7,500 to $9,500. Weaver would then cash these cashier’s checks at various branches and give the currency back to Archie Evans, in increments of $25,000 to $50,000, to structure deposits into Evan’s bank accounts. This cycle of the banking activity was repeated numerous times. Between 1/21/2011 and 10/3/2011, $692,000 was credited to Vier’s bank account on behalf of Weaver which was sourced by Evans’ bank account. Of the amount credited, $375,000 was proceeds from the sale of the marina. Weaver hid a total of 1.2 million dollars of assets he had pledged to SafeCo and SafeCo ultimately lost more than 7 million dollars as the result of issuing bonds to Weaver. Evans was previously sentenced to 7 years imprisonment and Viers is awaiting sentence for his involvement as a coconspirator.
The case was investigated by agents of the Internal Revenue Service and the United States Secret Service. Assistant United States Attorney William E. Day, II of the Columbia office is prosecuting the case.
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Two Additional Men Charged in Federal Drug ConspiracyRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina---- United States Attorney Bill Nettles today announced the indictment and arrest of Shane Henderson, 41, and Christopher Trent Glover, 42, for conspiracy to possess with intent to distribute and to distribute methamphetamine. Henderson and Glover were indicted along with eleven individuals who had previously been indicted for conspiracy to traffic methamphetamine and heroin. Several of the defendants have also been charged with conspiracy to launder money.
The case was investigated by Special Agents with the Drug Enforcement Administration, as well as agents and officers from the State Law Enforcement Division, City of Charleston Police Department, South Carolina Highway Patrol, Spartanburg County Sheriff’s Office and Anderson County Sheriff’s Office.
Assistant United States Attorney Nick Bianchi of the Charleston office is prosecuting the case.
The United States Attorney stated that the charges alleged in the Indictment are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Three Plead Guilty in Oxycodone ConspiracyRead the Press Release
Contact Person: Bill Watkins (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Nathan C. Johnson, age 51, of Marietta, Patricia T. Brookshire, age 54, of Travelers Rest, and Carmen B. Crudo, age 31, of Hendersonville, North Carolina, pled guilty today in federal court in Anderson, to conspiracy to distribute oxycodone and other controlled substances, a violation of Title 18, United States Code, Section 846. Senior United States District Judge G. Ross Anderson, Jr., of Anderson accepted the pleas and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that the federal Drug Enforcement Administration had undertaken a long-term investigation into the distribution of oxycodone in the upstate of South Carolina. On July 8, 2014, agents conducted a controlled purchase of 25 oxycodone pills from Cheryl Shipman, who pled guilty earlier this year, using a confidential source. To fulfill the order, Shipman traveled to meet Johnson and was observed conducting a drug transaction with Johnson. Further investigation revealed that, in addition to Johnson, Shipman had other sources of supply for Oxycodone and that she sold oxycodone to area dealers and addicts on a daily basis. Carmen Crudo frequently traveled from Hendersonville, North Carolina, to purchase pills from Shipman. According to reports from Henderson County, North Carolina, Crudo was arrested on April 24, 2014, after she was observed selling oxycodone obtained from Shipman to a known drug user. Patricia Brookshire’s role in the conspiracy was to provide Shipman with methadone for resale. On July 10, 2014, Shipman purchased 99 methadone pills from Brookshire. This transaction was recorded by law enforcement.
Mr. Nettles stated the maximum penalty the Defendants can receive is a fine of $250,000 and/or imprisonment for 20 years, plus a special assessment of $100.
The case was investigated by agents of the federal Drug Enforcement Administration. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
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Staples, Inc. and Staples Contract and Commercial, Inc. Settle Allegations that it violated the Family Medical Leave Act for $275,000Read the Press Release
Contact Person: Beth Drake (803) 929-3000
COLUMBIA, South Carolina ---- United States Attorney Bill Nettles announced today that the United States Attorney's Office for the District of South Carolina, working alongside the United States Department of Labor, settled with Staples, Inc. and Staples Contract and Commercial, Inc. (collectively, “Staples”) for $275,000 amid allegations that it violated the Family Medical Leave Act of 1993, 29 U.SC. §§ 2601, et seq. (“FMLA”). The United States contended that Staples, which owns a nation-wide chain of office supply stores, failed to provide notice of employees’ rights under the FMLA, which prevented employee Jeffrey Angstadt from making educated decisions about requesting leave when his wife was diagnosed with cancer and initiated chemotherapy and radiation treatments. Specifically, the United States contended that:
- In September 2010, Mr. Angstadt provided notice to Staples of his need to take leave to care for his ailing wife, which qualified as leave under the FMLA.
- Although Mr. Angstadt was entitled to FMLA leave, and Staples was obligated to provide FMLA leave if requested, Staples did not provide Mr. Angstadt notice of his rights and responsibilities under the FMLA; and Mr. Angstadt was not aware of his rights. Mr. Angstadt’s supervisors were aware of his wife’s condition.
- Between September 2010 and January 2012, Mr. Angstadt took leave intermittently to care for his wife, and also worked remotely in an attempt to balance his job obligations with the need to care for his wife.
- As a result of Staples’ failure to provide notice to Mr. Angstadt’s of his rights under the FMLA, he was unlawfully placed on a Performance Improvement Plan and terminated. Mr. Angstadt was unemployed for a period of time after being terminated.
As part of the Government’s settlement with Staples, Mr. Angstadt will receive $275,000, which consists of front pay, back pay, lost benefits, and liquidated damages. Staples has agreed to promote compliance with the FMLA by providing training to it Human Resources and managerial personnel regarding FMLA notice and eligibility requirements, investigating and immediately remediating any complaint or potential violation of the FMLA, and posting FMLA enforcement posters at conspicuous places at Staples’ places of employment.
“The very purpose of the Family Medical Leave Act is to prevent the unfortunate fate of Mr. Angstadt, whose wife passed away last year,” said Mr. Nettles. “The protections afforded by the FMLA are absolutely critical when an employee is faced with the need to care for himself or a family member; and this office will go to great lengths to ensure its enforcement.”
If you suspect violation of the FMLA, please report it by phone at 1-866-4USWAGE (1-866-487-9243), TTY: 1-877-889-5627, Monday-Friday 8 a.m. to 5 p.m.
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Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
United States Attorney Bill Nettles stated today that a Federal Grand Jury in Florence, South Carolina, returned Indictment(s) against the following:
Postal employee steals money from the mail
Melvin Lewis Jones, age 58, of Bennettsville, South Carolina was charged in a 1-count indictment. Melvin Lewis Jones was charged with stealing money from the mail by a postal employee, a violation of Title 18, U. S. C. §1709. The maximum penalty Jones could receive is 5 years imprisonment and a fine of $250,000.00. The case was investigated by agents of the United States Postal Service - Office of Inspector General and is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.Money embezzled from the Department of Veterans Affairs
Reginald Vereen, age 48, of Nichols, South Carolina was charged in a 1-count indictment. Reginald Vereen was charged with embezzling money from the Department of Veterans Affairs, a violation of Title 18, U. S. C. §641. The maximum penalty Vereen could receive is 10 years imprisonment and a fine of $250,000.00. The case was investigated by agents of the Department of Veterans Affairs and is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.Marion County Man Indicted for Drug Trafficking
Gabriel Emanuel Foxworth, age 27, of Marion, South Carolina was charged in a 5-count indictment for Possession with Intent to Distribute Marijuana, a violation of Title 21, U. S. C. §841(a)(1), Felon in Possession of a Firearm, a violation of Title 18, U. S. C. §922(g)(1) and Possession of a Firearm in Furtherance of a Drug Trafficking Crime, a violation of Title 18, U. S. C. §924(c)(1)(A). The maximum penalty Foxworth could receive is life imprisonment. The case was investigated by agents of the ATF and Marion County Sheriff’s Office and is assigned to Assistant United States Attorney Christopher D. Taylor of the Florence office for prosecution.The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Columbia Man Sentenced to 12.5 Years on Federal Drug ChargeRead the Press Release
Contact Person: Stacey Haynes (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated that Raheem Majeed, a/k/a “Mitch,” age 30, of Columbia, South Carolina was sentenced yesterday to 151 months (12.5 years) imprisonment along with 8 years of supervised release to follow. Majeed plead guilty in February to conspiracy to possess with intent to distribute and to distribute 500 grams or more of cocaine and 28 grams or more of crack cocaine, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(B). Senior United States District Judge Cameron McGowan Currie imposed the sentence.
Evidence presented at the change of plea hearing established that beginning at least in or around June 2006, and continuing to up and including October 2009, Majeed and others conspired to possess with intent to distribute and to distribute cocaine and crack cocaine in the Columbia, South Carolina area. The indictment stemmed from a large investigation by the Federal Bureau of Investigation (FBI) in which over 120 defendants were charged following a series of court-authorized, FBI-monitored wiretaps over dozens of telephones in the Columbia area. The evidence showed that Majeed distributed over 500 grams of cocaine and over 28 grams of crack cocaine while a member of this conspiracy. Majeed was charged, along with a number of co-defendants, in 2011 and remained a fugitive until his arrest in 2014. Majeed has prior state convictions for robbery with a deadly weapon, possession of marijuana 2nd offense, and possession with intent to distribute marijuana.
The case was investigated by the FBI Columbia Violent Gang Task Force. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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Former Chairman of Board of Trustees for South Carolina State Sentenced to 5 Years for Racketeering ConspiracyRead the Press Release
Contact Person: J.D. Rowell, (803) 929-3000
Columbia, South Carolina---- The United States Attorney’s Office announced that Jonathan Pinson, age 45, of Greenville, South Carolina was sentenced today in federal court in Columbia, South Carolina, for Conspiracy to Commit Racketeering (Count 1), Theft Concerning Programs Receiving Federal Funds (Counts 2,3) Conspiracy to Commit Wire Fraud (Counts 12, 18), Mail Fraud (Counts 25, 26), Wire Fraud (Counts 27-34), Money Laundering (Counts 35-41) and False Statements (Counts 43-46 and 48-50). United States District Judge David C. Norton of Columbia sentenced Mr. Pinson to 60 months concurrent on each count of conviction, to be followed by 5 years supervised release. Judge Norton imposed restitution in the amount of $337,843.05.
In June 2014, a jury convicted Mr. Pinson for his involvement in four different schemes. One scheme revolved around the 2011 homecoming concert at SCSU and Mr. Pinson’s efforts to steer the concert promotion contract to his close friend and former SCSU roommate in exchange for a kickback.
Other schemes included Mr. Pinson’s theft of government funds earmarked for the installation of a diaper plant in Marion County. Evidence showed that proceeds from the grant, intended to create jobs in rural Marion County, were instead pocketed by Mr. Pinson and his associates, Lance Wright, Tony Williams, and Phil Mims, each of whom has pled guilty to charges related to the fraud.
Mr. Pinson was also convicted of theft of government funds received from a 10 million dollar American Recovery and Reinvestment Act (ARRA) grant (commonly known as stimulus money) intended for the development known as the Village at Rivers Edge (VRE).
In the final scheme Mr. Pinson again used his position as Chairman of the Board of SCSU to influence officials at SCSU to purchase land known as “Sportsman’s Retreat”. The seller of the property, Richard Zahn, Pinson’s business partner, testified that he agreed to pay a kickback to Mr. Pinson in the form of a new Porsche Cayenne, an SUV valued at approximately 90 thousand dollars.
During the two and one-half week trial, the Government called twenty witnesses, introduced approximately 200 exhibits and played 118 secretly recorded telephone calls. The calls, authorized by a court ordered wiretap, covered from July 21 to November 20, 2011.
“The FBI, and its local, state, and federal law enforcement partners, remain vigilant in the fight against Public Corruption and are committed to bringing to justice those who abuse public trust,” said FBI Special Agent in Charge David A. Thomas. In thanking his law enforcement partners, SAC Thomas added, “The investigation that gave rise to this indictment and the conviction of Mr. Pinson and others is an example of the excellent work being done by the South Carolina Public Corruption Task Force which includes the FBI, the South Carolina Law Enforcement Division and IRS.”
Special Agent in Charge Thomas Holloman said, “The Internal Revenue Service, Criminal Investigations, is committed to using our agent’s expertise in ‘following the money’ to bring accountability to public officials who steal taxpayer dollars to fund their prodigal lifestyles.”
The case was investigated by agents of the Federal Bureau of Investigation (FBI), State Law Enforcement Division (SLED), Department of Housing and Urban Development, Office of Inspector General (HUD-OIG) and Internal Revenue Service, Criminal Investigations (IRS-CI). Assistant United States Attorney Nancy Wicker, Jane Taylor, Dewayne Pearson, and J.D. Rowell of the Columbia office prosecuted the case.
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Columbia Women Sentenced in Oxycodone ConspiracyRead the Press Release
Contact Person: Winston David Holliday, Jr. (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Shawnetta Belton, age 32, and Althea Mack, age 35, both of Columbia, South Carolina, were sentenced yesterday for Conspiracy to Possess with Intent to Distribute Oxycodone, a violation of Title 21, U. S. C., § 846. Chief United States District Judge Terry L. Wooten sentenced Belton to ten years imprisonment and Mack to two years imprisonment. Both were immediately taken into custody.
Evidence presented during their change of plea hearings established that Belton worked for a doctor and had access to his prescription pad. She wrote prescriptions for oxycodone and distributed them to others to be filled. Some of these unlawful prescriptions were filled in Columbia, others were filled in Beaufort. Althea Mack was the go-between for the Beaufort prescriptions, receiving them from Belton and distributing them to co-conspirators in Beaufort. Over ninety prescriptions were passed during the course of the conspiracy.
Previously, Desmond Washington, age 39, of Charlotte, North Carolina, was sentenced to 41 months imprisonment for his involvement in the conspiracy, and Latrincy Carter, age 30, of Columbia, was sentenced to 37 months imprisonment.
United States Attorney Bill Nettles stated, “Those who traffic in prescription drugs prey on the addictions of some of our most vulnerable citizens. Our office has dedicated itself to pursuing these drug dealers to punish their conduct and to provide a disincentive to those who would profit from selling pills illegally.”
Fifth Circuit Solicitor Dan Johnson stated, “It’s always a good day when the US Attorney and I can work together to make the community better and to create the positive outcomes that the public expects.” Adds Johnson, “I look forward to working with the United States Attorney and all law enforcement agencies in Richland and Kershaw Counties to further rid our communities of drugs and drug offenders.”
The case was investigated by investigators with the Drug Enforcement Administration, the Richland County Sheriff’s Office, and the S.C. DHEC Bureau of Drug Control. Assistant United States Attorney Winston Holliday of the Columbia office and Assistant Solicitor Joseph Shenkar of Richland County prosecuted the case.
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Two Columbia Area Residents Arraigned for Conspiracy to Commit Bank FraudRead the Press Release
Contact Person: John Potterfield (803) 929-3000
Columbia, South Carolina---- John Wayne Martin, III, age 49, of Lexington, South Carolina; and Brodie Kale Sexton, age 37, of Columbia, South Carolina were both arraigned on a 4-count indictment in reference to a mail theft and forgery ring operating in the Midlands of South Carolina from July 2014 through November 2014. They were charged in an indictment with two other individuals; Sandra Kay Cheeks, age 47, of Lexington, South Carolina; and Brandy Michelle Mitchell, age 35, of Lexington, South Carolina; on these charges. The indictment alleges the individuals would illegally remove checks from mail boxes and other mail receptacles. The defendants would change the amount and the name of the payee on the check to one of the defendants or the name of an innocent victim whose identification had been illegally obtained by the defendants.
Martin and Sexton are charged with Criminal Conspiracy, a violation of 18 U. S. C. §1349; and Aggravated Identity Theft, a violation of 18 U. S. C. §1028A. The maximum sentence each could receive under 18 USC, Section 1349 is a fine of $1,000,000 and/or imprisonment for not more than 30 years. The defendants face a mandatory sentence of 2 years if convicted under 18 USC, Section 1028A.
The investigation, led by the US Postal Inspection Service Columbia, SC field office, was conducted with the cooperation of federal, state, and local law enforcement agencies, along with private industry security personnel. These agencies and groups make up the Midlands Economic Crime Group, or MECG, a working group led by the US Postal Inspection Service and the Lexington County Sheriff’s Office that meets once a month to discuss ongoing criminal incidents involving forgery, theft, fraud, identity theft, and other similar white collar crimes in the Midlands of South Carolina. The case is assigned to Assistant United States Attorney John Potterfield of the Columbia office for prosecution.
The United States Attorney further stated that all charges in the Indictment are merely accusations and that all defendants are presumed innocent until and unless proven guilty in a court of law.
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Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina----United States Attorney Bill Nettles stated today that a Federal Grand Jury in Charleston, South Carolina, returned Indictment(s) against the following:
Summerville Man Indicted for Attempted Possession and Attempted Receipt of Child Pornography
Ernest Christopher Limehouse, age 31, of Summerville, South Carolina, was charged in a 4-count Indictment with Attempted Possession and Attempted Receipt of Child Pornography, a violation of 18 U.S.C. § 2252A. The maximum penalty that Limehouse could receive is 20 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the FBI and is assigned to Assistant United States Attorney Rhett DeHart of the Charleston office for prosecution.Summerville Woman Indicted for Theft of Government Property
Ophelia Williams, age 60, of Summerville, South Carolina, was charged in a 1-count Indictment with Theft of Government Property, a violation of 18 U. S. C. § 641. The maximum penalty that Williams could receive is 10 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the Social Security Administration and is assigned to Assistant United States Attorney Rhett DeHart of the Charleston office for prosecution.Hanahan Man Indicted for Illegal Reentry of an Alien after Removal
Ivan Edgardo Soto Naranjo, a/k/a Juan Chavez Avalos, age 37, of Hanahan, South Carolina, was charged in a one-count Indictment with Illegal Reentry of an Alien after Removal, in violation of Title 8, United States Code, Section 1326(a). The maximum penalty Soto Naranjo could receive is 2 years imprisonment and a $250,000 fine. The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE-ERO) and is assigned to Assistant United States Attorney Dean H. Secor of the Charleston office for prosecution.Man Charged with False Statement to a Federal Agency
Divett Lydrell Mays, age 43, of Hurghada, Egypt, was charged in a one-count Indictment with False Statement to a Federal Agency, a violation of Title 18, United States Code, Section 1001(a)(2). The maximum penalty Mays could receive is 5 years imprisonment and a $250,000 fine. The case was investigated by agents of the Department of State, Diplomatic Security Service and is assigned to Assistant United States Attorney Dean H. Secor of the Charleston office for prosecution.Hollywood Man Indicted for Failure to Register as a Sex Offender
Andre Youngblood, a/k/a Michael S. Long, a/k/a Michael Johnson, age 40, of Hollywood, South Carolina, was charged in a one-count Indictment with Failing to Register as a Sex Offender, a violation of Title 18, United States Code, Section 2250(a). The maximum penalty Youngblood could receive is 10 years imprisonment. The case was investigated by agents of the United States Marshals Service and is assigned to Assistant United States Attorney Dean H. Secor of the Charleston office for prosecution. This case is being 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 the United States Attorneys’ Offices and the Criminal Division?s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who sexually exploit children, as well as to identify and rescue victims. For more information, please visit www.usdoj.gov/psc.The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
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United States Attorney Bill Nettles stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictment(s) against the following:
Greenville Residents Charged with Theft of Government Property
John W. Brown, age 63, and Betty Brown, age 57, both of Greenville, South Carolina, were charged in a two-count Indictment charging violations of Title 21, United States Code, Section 843(a)(3), which prohibits obtaining prescription drugs by deception and subterfuge, and Title 18, United States Code, Section 641, which prohibits the theft of government funds or property. The maximum penalty the defendants could receive is four years imprisonment and a fine of $250,000.00. The case was investigated by agents of the Department of Veterans Affairs, Office of Inspector General, and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.
Individual Charged with Escape from Custody
Tishika N. Gatson, age 34, was charged in a single-count Indictment with escaping from the custody of a correctional facility, a violation of Title 18, United States Code, Section 751(a). The maximum penalty Gatson could receive is five years imprisonment and a fine of $250,000.00. The case was investigated by agents of the United States Marshals Service, and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.
Foreign Nationals Charged with Illegal Re-entry
Maclovio Avellaneda-Gama, Miguel Angel Sanchez-Raudales, Magdelena Bartolon-Garcia, David Tello-Sanchez and Alfredo Jimenez-Gonzalez were each charged in Indictments with illegal re-entry to the United States, a violation of Title 8, United States Code, Section 1326. The maximum penalty each could receive, depending on their prior criminal history, is two to twenty years imprisonment. These cases were investigated by Department of Homeland Security, U.S. Immigration and Customs Enforcement agents and are assigned to Assistant United States Attorney Max Cauthen of the Greenville office for prosecution.
The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.US Attorney Nettles Announces Recipients of Crime Victims Awards in Observance of National Crime Victims’ Rights WeekRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, SOUTH CAROLINA – On April 30, 2015, the US Attorney’s Office hosted an awards ceremony in honor of National Crime Victims’ Rights Week. U.S. Attorney William N. Nettles presented awards honoring individuals and organizations that have made outstanding contributions in support of crime victims. All of the honorees have exemplified dedication and commitment in enhancing efforts to meet crime victims where they are, and to empower crime victims as they pursue justice and recovery. Mr. Nettles stated that, “It is an honor and privilege to recognize our partners in support of the victims we serve each day”. Below are the award recipients:
Outstanding Victim Support by a Non-Governmental Agency
Charleston based office of A-21 Campaign - CaraLee Murphy, Director
Outstanding Provider Services
Medical University of South Carolina's National Crime Victims
Research and Treatment Center (NCVC)
Dr. Dean Kilpatrick, Center Director
Dr. Alyssa Rheingold, Director of Clinical Operations
South Carolina Immigrant Victims Assistance Network
Patricia Ravenhorst, Director
OUTSTANDING VICTIM SERVICES
Four Assistant U.S. Attorneys were recognized for their work and dedication in cases involving crime victims.
Nathan Williams- Charleston office
Carrie Fisher-Sherard – Greenville office
Stacey Haynes –Columbia office
William “Bill” Day- Columbia/Florence offices
National Crime Victims’ Rights week observances are held annually and are led by the Office of Victims of Crime (OVC) by promoting victims’ rights and honoring crime victims and those who advocate on their behalf. This year’s theme, Engaging Communities-Empowering Victims, highlights the diversity in our communities and focuses on partnerships to serve victims of crime.
United States Attorney’s Office District of South Carolina– National Crime Victims’ Week Awards Program
(L-R) Clarissa Whaley-Victim Witness Coordinator-USAO, Dr. Dean Kilpatrick and Dr. Alyssa Rheingold-MUSC-NCVC, Patricia Ravenhorst- SCVAN/SCIVN, CaraLee Murphy-A-21 Campaign/Charleston, United States Attorney Bill Nettles and Renee Mattox-Victim Witness Coordinator-USAO
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