District of South Carolina
Press releases recorded for this federal judicial district.
Project Sentry Logo Contest; Press Release Announcing Division Winners and Overall Winner and SchoolsRead the Press Release
Contact Person: Lance Crick (864) 282-2100
MEDIA ALERT:
12th Annual Project Sentry Logo Contest Winners Announced
Winning Students from Myrtle Beach, Orangeburg, Macedonia, and Pawleys IslandCOLUMBIA, South Carolina ---- United States Attorney Bill Nettles announced today the winners of the United States Attorney’s Office 12th Annual Project Sentry Logo Contest. The winners are from the following schools:
K-2nd grade division winner: Presley Sokolils, Socastee Elementary School, Myrtle Beach, South Carolina
3rd-5th grade division winner: Tamiya Dickson, Marshall Elementary School, Orangeburg, South Carolina
6th-8th grade division winner and OVERALL WINNER: Josiah Agnew, Macedonia Middle School, Macedonia, South Carolina
9th-12th grade division: Kelvin Cheah, Waccamaw High School, Pawleys Island, South Carolina
The winning entries, attached below, were chosen from 529 entries from 47 schools across South Carolina. Each division winner will receive a $50.00 award, with the overall winner receiving an additional $50.00 award. All of the students who participated will receive a Certificate of Appreciation for logo submissions.
The statewide contest fosters an opportunity for South Carolina students to tell the entire state how they prevent gun violence in their school and focuses on deterrence of juvenile gun violence and ensuring secure school environments. The contest was open to students in all South Carolina schools.
The winning entries were selected by “The Insiders,” a select group of students from the South Carolina Department of Juvenile Justice, who travel throughout the state, encouraging troubled children and promoting community awareness of the prevalence and consequences of juvenile crime. The United States Attorney's Office coordinated with the South Carolina Law Enforcement Officers’ Association Foundation (SCLEOA) to provide the cash awards to the winners.
Project Sentry, which is part of the district’s Project Safe Neighborhoods/Project CeaseFire program, is a vital step in strengthening our ability to prevent gun crimes among our young people and to ensure a safe learning atmosphere for our children. For more information on the Project Sentry program and to view this year’s winning submissions (also attached below) as well as winning logos over the years, visit http://www.justice.gov/usao/sc/programs/logowinners.html
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2015 Project Sentry Logo K-2 Winner Presley Sokolils
2015 Project Sentry Logo 3-5 Winner Tamiya Dickson
2015 Project Sentry Logo 6-8 and Overall Winner Josiah Agnew
2015 Project Sentry Logo 9-12 Winner Kelvin Cheah
Lexington Man Pleads Guilty to Money Laundering Charge Using BitcoinRead the Press Release
Contact Person: DeWayne Pearson (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Joseph Patrick Gelli age 23 of Lexington has entered a plea of guilty to conspiracy to commit money laundering in violation of Title 18, United States Code, Section 1956. According to facts presented during the guilty plea hearing, Gelli was involved in trafficking illegal drugs through the use of Bitcoin, an internet based money system. Gelli used bitcoins to purchase marijuana and psychotropic mushrooms from illegal websites located on “the deep web”, a section of the internet not accessible through common search engines like Google or Yahoo. Gelli had the illegal drugs delivered to his home and then he would distribute the illegal drugs to his customers. A search of Gelli’s home revealed a variety of illicit drugs and $38,000 in cash. Sentencing in the case has not yet been scheduled, but Gelli faces a maximum penalty of twenty years of imprisonment and a fine of $500,000.
Thomas J. Holloman, III Special Agent in Charge, IRS Criminal Investigation said, "Mr. Gelli’s criminal activities involved the laundering of specified unlawful activity using Bitcoin, a virtual currency that can be used in a wide variety of crimes involving tax fraud, money laundering, and other financial crimes. IRS-CI will continue to focus on financial crimes that involve virtual currency by collaborating with FinCEN, its internal business units and other federal law enforcement agencies to identify the movement of illegal monies utilizing virtual currency.”
The case was investigated by Special Agents with the Internal Revenue Service and the Lexington County Sheriff’s Department. The case was prosecuted by Assistant United States Attorney T. DeWayne Pearson of the Columbia office.
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Sumter Man Sentenced in Federal Court on Drug ChargesRead the Press Release
Contact Person: William Witherspoon (803) 929-3000
Columbia, South Carolina---- United States Attorney Bill Nettles stated that Kevin Lamont Loney, age 38, of Sumter County, South Carolina was sentenced today in federal court in Columbia, South Carolina, for possession with the intent to distribute 28 grams or more of crack cocaine, 500 grams or more of cocaine and a quantity of marijuana, a violation of 21 U.S.C. §§ 841(a) (1) 841(b) (B) and 841(b)(1)(D). Senior United States District Judge Margaret B. Seymour of Columbia sentenced Loney to 300 months imprisonment (25 years) followed by 8 years of supervised release and a special assessment of $100.
Evidence presented at the change of plea hearing established that a search warrant was executed at Loney’s residence. The search warrant was based upon the purchase of half a kilogram of cocaine from Loney by the police. Based upon this purchase and other information, the officers obtained the search warrant for Loney’s home. During the search, they found more than 500 grams of cocaine, 96 grams of crack cocaine and 20 kilograms of marijuana in Loney’s home. Loney was arrested.
The case was investigated by agents of the Drug Enforcement Administration Task Force, Bureau of Alcohol, Tobacco, Firearms and Explosives and Sumter County Sheriff's Department. Assistant United States Attorney William K. Witherspoon of the Columbia office prosecuted the case.
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Round O Man Sentenced for Manufacturing MarijuanaRead the Press Release
Contact Person: Nick Bianchi (843) 727-4381
Columbia, South Carolina---- United States Attorney Bill Nettles stated today that Michael R. Rea, age 63, of Round O, South Carolina was sentenced today in federal court in Charleston, South Carolina, for manufacturing and possessing with intent to distribute marijuana, a violation of 21 U.S.C. § 841. United States District Judge Richard M. Gergel of Charleston sentenced Rea to 5 years imprisonment, to be followed by 4 years supervised release.
Evidence presented at the change of plea hearing established that Rea was arrested after law enforcement executed a search warrant at his residence on January 3, 2014. During the search, law enforcement confiscated approximately 1,800 marijuana plants and 65 pounds of harvested marijuana. After his arrest, Rea told officers that he had been growing marijuana since 1989.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Colleton County Sheriff’s Office, the Walterboro Police Department and the South Carolina Law Enforcement Division (SLED). Assistant United States Attorney Nick Bianchi of the Charleston office prosecuted the case.
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North Charleston Man Sentenced to 15 Years in Federal PrisonRead the Press Release
Contact Person: Nick Bianchi (843) 727-4381
Columbia, South Carolina---- United States Attorney Bill Nettles stated today that Horace E. Green, age 25, of North Charleston, South Carolina was sentenced today in federal court in Charleston, South Carolina, for discharging of a firearm in furtherance of a drug trafficking crime, a violation of 18 U.S.C. § 924(c). United States District Judge Richard M. Gergel of Charleston sentenced Green to 15 years imprisonment, to be followed by 4 years supervised release.
Evidence presented at the change of plea hearing established that Green approached an individual about selling marijuana to him. Green then attempted to rob the individual, and as the individual fled, Green fired multiple shots from a .38 revolver at the individual. The individual was not hit by any of the shots fired by Green.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the North Charleston Police Department. Assistant United States Attorney Nick Bianchi of the Charleston office prosecuted the case.
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Fountain Inn Man Pleads Guilty to Hydrocodone ConspiracyRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated that Houston G. Leake, age 70, of Fountain Inn, pled guilty today in federal court in Greenville, to conspiracy to distribute hydrocodone 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 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 the federal Drug Enforcement Administration along with the Fountain Inn Police Department had undertaken a long-term investigation of Leake. Agents used a confidential informant and an undercover police office to make 7 buys of hydrocodone and Percocet pills from Leake. Based on the undercover buys, law enforcement executed a search warrant at Leake’s home. Inside they found various controlled substances including morphine, methadone, oxycodone and hydrocodone. Law enforcement also found various firearms.
Mr. Nettles stated the maximum penalty Leake 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 Fountain Inn Police Department and the federal Drug Enforcement Administration. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
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Federal Grand Jury in Florence, South Carolina, 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 Florence, South Carolina, returned Indictment(s) against the following:
Illegal Re-Entry Into U.S. After Being Deported
Jose Matias Benitez, age 43, of Horry County, South Carolina was charged in a 1-count indictment. Jose Matias Benitez was charged with illegal re-entry into the U.S. after being deported, a violation of Title 8, U. S. C. §1326(a). The maximum penalty Benitez could receive is 2 years imprisonment and a maximum fine of $250,000. The case was investigated by deportation officers of the U.S. Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO), and is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.Illegal Re-Entry Into U.S. After Being Deported
Roberto Vasquez-Gonzalez, a/k/a Rober Gonzalez, age 23, of Horry County, South Carolina was charged in a 1-count indictment. Roberto Vasquez-Gonzalez, a/k/a Rober Gonzalez was charged with illegal re-entry into the U.S. after being deported, a violation of Title 8, U. S. C. §1326(a). The maximum penalty Benitez could receive is 2 years imprisonment and a maximum fine of $250,000. The case was investigated by deportation officers of the U.S. Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO), and is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.Identity Theft
Lauren E. Blackwell, age 28, of Bishopville, South Carolina was charged in a 2-count indictment. Lauren E. Blackwell was charged with identity theft, a violation of Title 18, U. S. C. §1028(a)(7), and unauthorized use of a credit card, a violation of Title 18, U. S. C. §1029(a)(2). The maximum penalty Blackwell could receive is 15 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the U.S. Postal Inspection Service and is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.Manufacturing and Possessing Counterfeit Money
Donald Gene McIntyre, age 39, of Myrtle Beach, South Carolina was charged in a 2-count indictment. Donald Gene McIntyre was charged with manufacturing counterfeit money, a violation of Title 18, U. S. C. §471, and possession of counterfeit money, a violation of Title 18, U. S. C. §472. The maximum penalty McIntyre could receive is 20 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the United State Secret Service and is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.Embezzling Social Security Funds
Lucy Wallace, age 52, of Kingtree, South Carolina was charged in a 1-count indictment. Lucy Wallace was charged with embezzling funds from Social Security Administration, a violation of Title 18, U. S. C. §471. The maximum penalty Wallace 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 A. Bradley Parham of the Florence office for prosecution.New York Man Indicted for Trafficking Heroin
Dany Alexis Toro-Munera, age 29, was charged in a 1-count indictment for Possession with Intent to Distribute Heroin, a violation of Title 21, U. S. C. §841(a)(1). The maximum penalty Toro-Munera could receive is 40 years imprisonment and a maximum fine of $2,000,000. The case was investigated by the Florence County Sheriff's Office and the Drug Enforcement Administration Task Force 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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Two Former Marion, South Carolina, Police Officers Sentenced for Using Excessive Force While Tasing a WomanRead the Press Release
Contact: (202) 514-2007
WASHINGTON – Franklin Brown, 35, and Eric Walters, 39, both former police officers with the city of Marion Police Department in Marion County, South Carolina, were sentenced to serve 18 months and one year and one day in prison, respectively, today in federal court in Florence, South Carolina, by U.S. District Court Judge R. Bryan Harwell for repeatedly tasing a former local female resident during the course of her detainment. For both defendants, three years of supervised release will follow the prison sentences and they each face a $100 special assessment. Brown and Walters previously pleaded guilty to violating the victim’s civil rights during this incident.
According to court documents, on April 2, 2013, in the course of detaining the victim, Walters tased the victim causing her to fall to the ground and injure her head. Once she was on the ground, Walters continued to tase the victim multiple times. Brown subsequently arrived on scene and proceeded to tase the victim as she was seated on the curb, restrained in handcuffs and surrounded by law enforcement. Walters and Brown admitted there was no legitimate law enforcement purpose for repeatedly tasing the victim as she did not pose a threat to the officers.
“The defendants abused their authority as law enforcement officers by repeatedly tasing a defenseless, compliant victim,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “Today’s sentence is a reminder that this type of abusive and dishonorable behavior will not go unpunished.”
“I thank the Marion Police Department, the FBI and the Civil Rights Division,” said U.S. Attorney Bill Nettles of the District of South Carolina. “Due to their collective efforts in concert with our office, the officers in this case were brought to justice.”
Today’s sentence resulted from the investigative work of the FBI’s Myrtle Beach Division. The case is being prosecuted by Trial Attorneys Henry Leventis and Nicholas Murphy of the Civil Rights Division, and Assistant U.S. Attorney John Potterfield of the District of South Carolina.
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Former Lexington County Sheriff James R. Metts SentencedRead the Press Release
Contact Person: Jay Richardson (803) 929-3000
Columbia, South Carolina---- United States Attorney Bill Nettles stated today that James R. Metts, age 68, was sentenced today in federal court in Columbia, South Carolina, for Conspiracy to Harbor Illegal Aliens, a violation of 8 U.S.C. § 1324(a)(1)(A)(v)(I). Chief United States District Judge Terry L. Wooten sentenced Metts to 12 months and one day in prison, 2 years of supervised release, and a $10,000 fine.
Evidence presented throughout the prosecution established that Metts was the forty-two year sheriff of Lexington County. Beginning in September 2011, Metts agreed with a City Councilman, and an owner of local restaurants, to assist restaurant employees to avoid identification and processing by a federal immigration program housed at the Lexington County Detention Center. As one example, on September 16, 2011, a restaurant employee who was an illegal alien was arrested and transported to the detention center. The restaurant owner contacted the City Councilman who in turn called Metts and requested assistance. Metts contacted a member of his command staff about the illegal alien. Based on Metts’ early intervention, this alien was released improperly on a state bond prior to being identified or processed by federal immigration authorities as reflected in the federal immigration logbook with the notation, “Release per Sheriff Metts.”
Bill Nettles stated, “One of the cornerstones of democracy is citizens having faith that law enforcement acts with integrity and not in a self-serving ‘good ole boy’ system. Today’s resolution is a step towards restoring the shine to the badge that Mr. Metts tarnished.”
The case was part of the cooperative efforts of the Federal Bureau of Investigation, Homeland Security Investigation, State Law Enforcement Division, the South Carolina Attorney General’s Office, and the United States Attorney’s Office. Assistant United States Attorneys Jay N. Richardson and Jim May prosecuted the case.
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Two Former Police Officers to be Sentenced for Using Unreasonable ForceRead the Press Release
Contact Person: John Potterfield (803) 929-3000
COLUMBIA, SOUTH CAROLINA – United States Attorney Bill Nettles stated that United States District Court Judge Bryan Harwell has set sentencing in the case of United States v. Eric Walters and Franklin Brown, Case No.:14-258.
WHEN: Monday, April 27, 2015, at 2:30 p.m. and 3:00 p.m. WHERE: McMillan Federal Building
401 West Evans Street, Courtroom 1
Florence, South Carolina####
Notice of Court Proceedings - Former Lexington County Sheriff James R. Metts to be SentencedRead the Press Release
Contact Person: Jay Richardson (803) 929-3000
COLUMBIA, SOUTH CAROLINA – United States Attorney Bill Nettles stated that Chief United States District Judge Terry L. Wooten has set a sentencing hearing in the case of United States v. James R. Metts, Case No. 3:14-429.
WHEN: Monday, April 27, 2015, at 9:30 a.m. WHERE: Matthew J. Perry, Jr., Courthouse
901 Richland Street, Courtroom V
Columbia, SC 29201####
Kingpin Sentence in Income Tax Refund SchemeRead the Press Release
Contact Person: T. DeWayne Pearson (803) 929-3000
Columbia, South Carolina - United States Attorney Bill Nettles stated today that Flavio Torres-Tello, a.k.a. “El Jefe”, age 42, of Newberry was sentenced in connection with a scheme that netted him and others $1.4 million dollars in fraudulent income tax refund checks from the United States Treasury. Torres-Tello pleaded guilty to unlawful identification document transfer in violation of 18 United States Code, Section 1028(a)(2) and aggravated identity theft in violation of 18 United States Code, Section 1028A. According to facts presented during the guilty plea hearing, Torres-Tello directed others to buy or steal IRS form W-2s from migrant workers in and around the Lexington County area. Torres-Tello used the W-2 forms to file hundreds of fraudulent income tax returns, often adding multiple fictitious dependents to inflate the amount of the refunds. Torres-Tello would then generate forged Mexican Consular Identification Cards to use as identification in order to cash the refund checks at retail locations. Torres-Tello received a sentence of 61 months of incarceration and faces deportation upon his release.
“The IRS is aggressively pursuing those who steal others' identities in order to file false returns,” said Thomas J. Holloman, III, Special Agent in Charge, IRS Criminal Investigation. “Our cooperative work with the U.S. Attorney’s Office will help protect taxpayers in South Carolina from being victimized by identity theft. The IRS is taking additional steps this tax season to further prevent, detect and resolve identity theft cases as soon as possible.” The case was investigated by Special Agents with the IRS, the Department of Homeland Security/HSI, the United States Postal Inspection Service and the South Carolina Law Enforcement Division and was prosecuted by Assistant United States Attorney T. DeWayne Pearson of the Columbia office.
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National Crime Victims' Rights Week, April 19-25Read the Press Release
Contact Person: Beth Drake (803) 929-3000
COLUMBIA, SOUTH CAROLINA – Every April, the Office of Victims of Crime (OVC) helps lead communities throughout the country in their annual observances of National Crime Victims’ Rights Week (NCVRW) by promoting victims’ rights and honoring crime victims and those who advocate on their behalf. This year’s NCVRW will be held April 19-25 and the theme Engaging Communities, Empowering Victims, presents the opportunity to highlight the diversity in our communities, expand partnerships to serve victims of crime, enhance efforts to meet victims where they are, and empower crime victims as they pursue justice and recovery.
The U.S. Department of Justice will kick off the week with OVC’s annual National Crime Victims’ Service Awards Ceremony in Washington, DC to honor outstanding individual and programs that serve victims of crime. The US Attorney’s Office will join with state and local partners in observing NCVRW in special events throughout the state, including the South Carolina Victims Assistance Network and State Office of Victim Assistance’s Annual Victims’ Rights Week Conference, April 20 – 22. For more information, visit SCVAN’s website, www.scvan.org.
United States Attorney Nettles will lead the US Attorney’s Office in commemorating the advancement of victims’ rights by honoring several service providers, non-governmental organizations and prosecutors, all champions in advocating and providing support for crime victims in our state. The recognitions will take place on April 30. Information regarding each of the honorees will be forthcoming.
For more information about the 2015 National Crime Victims’ Rights Week and how your community may assist victims, please contact www.ovc.gov.
United States Attorney’s Office Victims’ Rights Recognitions
WHEN: Thursday, April 30, 10:00 am – 11:00 am
WHERE: USAO – 1441 Main Street, Suite 500, Columbia, SC
6th Floor Conference Room
* Paid parking is available behind 1441 Main Street and at meters on the street.
* Please ensure to bring a photo ID in order to gain entrance to the suite.
* Kindly be in place 10 minutes prior to the start of the ceremony.
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Sex Offender Receives 22 Months in Federal Prison for Failing to RegisterRead the Press Release
Contact Person: Brad Parham (843) 665-6688
Columbia, South Carolina---- United States Attorney Bill Nettles stated today that Gary Gibson was sentenced today in federal court in Florence, South Carolina, for failure to register as a sex offender, a violation of 18 U.S.C. § 2250(a). United States District Judge R. Bryan Harwell of Florence sentenced Gibson to 22 months imprisonment and 5 years supervised release.
Evidence presented during court proceedings established that Gibson was required to register as a sex offender because of his 2001 conviction in Oklahoma for Lewd Acts with Child under 16. Gibson, who has multiple prior convictions for failing to register as a sex offender, also failed to register as a sex offender when he moved to South Carolina in 2012.
The case was investigated by agents of the U.S. Marshal Service. Assistant United States Attorney A. Bradley Parham of the Florence office prosecuted the case.
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Child Molester Sentenced to 20 Years in Federal PrisonsRead the Press Release
Contact Person: Brad Parham (843) 665-6688
Columbia, South Carolina---- United States Attorney Bill Nettles stated today that Joseph Smith was sentenced April 17, 2015, in federal court in Florence, South Carolina, for Production of Child Pornography, a violation of 18 U.S.C. § 2251(a), and Possession of Child Pornography, a violation of 18 U.S.C. § 2252A(a)(5)(B). Chief United States District Judge R. Bryan Harwell of Florence sentenced Smith to 240 months imprisonment and supervised release for life
Evidence presented at the guilty plea hearing established that Smith made numerous video recordings of himself while molesting a minor child. Agents discovered that Smith then distributed these sexually explicit videos over the internet. During a search of Smith’s computer, agents also uncovered a significant amount of child pornography depicting sexually explicit images of prepubescent children.
The case was investigated by agents of the Immigration and Custom Enforcement. Assistant United States Attorney A. Bradley Parham of the Florence office prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
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Justice Department Asks Federal Court to Shut Down South Carolina Tax Return PreparersRead the Press Release
Contact: (202) 514-2007
WASHINGTON – In separate actions, the United States has asked a federal court in South Carolina to permanently bar two South Carolina men from preparing federal income tax returns for others, the Justice Department announced today.
In 1997, Clinton A. Broomfield, of Lexington, South Carolina, Tony McGill, of Ladson, South Carolina, and Stacy Middleton formed MBM Tax and Accounting Services LLC to prepare tax returns and provide other financial services. In 2007, Broomfield, McGill and Middleton ended their formal partnership and opened separate tax preparation businesses. Broomfield currently manages Summerville MBM Tax Service, while McGill manages MBM Accounting and Tax Services LLC in North Charleston, South Carolina. Though the partnership ended in 2007, McGill, Broomfield and Middleton continue to share advertising expenses.
In July 2013, the U.S. District Court for the District of South Carolina permanently barred Middleton from preparing federal tax returns for others. He is not a defendant in the current lawsuit.
The complaints allege that, through Summerville MBM Tax Service and MBM Accounting and Tax Services LLC, Broomfield and McGill prepare returns for customers that unlawfully understate income tax liabilities and overstate refunds. According to the suit, the defendants fabricate bogus deductions on Forms 1040, Schedule A (Itemized Deductions) and Schedule C (Profit or Loss from Business) that report nonexistent business expenses and deductions on their customers’ returns. These phony business losses offset the customers’ wages and falsely reduce their income tax liability, according to the suit.
The complaints further allege that Internal Revenue Service (IRS) audited returns prepared by McGill, which revealed tax understatements on 58 of the 61 examined returns, resulting in an average tax deficiency of $5,709 per return. Of the 147 IRS- examined returns that Broomfield prepared, 123 resulted in an increase of his customer’s tax liability, resulting in an average tax deficiency of $2,817 per return, according to the suit. Based on the large percentage of audited returns that understate customers’ actual tax liability and the number of returns Bloomfield and McGill prepare, the complaints allege that the U.S. Treasury may have lost millions of dollars in tax revenue as a result of the defendants’ conduct.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2015. The IRS has some tips on its website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on here. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
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Two Fairfax Men Charged with Causing Amtrak Train CollisionRead 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 James Duvall Love, 33, and Deon Dovell Roberts, 34, for conspiracy to commit mail and wire fraud, causing a train wreck, and unlawful interference with a train operator. The Indictment was returned by a Grand Jury sitting in Columbia but was sealed pending the arrests of the defendants, which occurred earlier today. The Indictment alleges that on the early morning hours of September 6, 2013, the two men parked a car in the path of an oncoming Amtrak train, got out of the car prior to the collision, and then returned to the car after the collision, feigning injury, all for the purpose of submitting bogus claims for personal injuries and other losses.
Love, a convicted felon, was also charged in a separate Indictment with unlawful possession of a shotgun and live shells.
The case was investigated by Special Agents with the Federal Bureau of Investigation, Amtrak Office of Inspector General, Bureau of Alcohol, Tobacco and Firearms, the Fairfax Police Department, and the Allendale County Sheriff’s Department. Amtrak Inspector General Tom Howard emphasized that: “The safety of the American railroad system is among the highest priorities of the country’s law enforcement agencies. Those who would seek to interfere with the well-being of Amtrak’s passengers and the commerce of the railroads will be held accountable to the greatest extent allowed under the law.”
Assistant United States Attorney Eric Klumb 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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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:
Younges Island Man Indicted for Investment Fraud
James Futch III, age 60, of Younges Island, South Carolina, was charged in a 1-count Indictment with Wire Fraud, a violation of 18 U.S.C. § 1343. The maximum penalty that Futch 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.Myrtle Beach Man Indicted for Theft of Government and Tax Fraud
Jose Boyzo, age 49, of Myrtle Beach, South Carolina was charged in a 1-count Indictment with Theft of Government Property involving the cashing of fraudulent tax refund checks, a violation of 18 U. S. C. § 641. The maximum penalty that Boyzo could receive is 10 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the Internal Revenue Service and is assigned to Assistant United States Attorney Rhett DeHart of the Charleston office for prosecution.Goose Creek Man Indicted for Illegal Reentry of an Alien Felon
Edwin Hernandez Hernandez, age 27, of Goose Creek, was charged in a one-count Indictment with Illegal Reentry of an Alien Felon, in violation of Title 8, United States Code, Sections 1326(a) and 1326(b)(1) respectively. The maximum penalty Hernandez could receive is 10 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.Ladson Man Charged with Manufacturing and Possessing Counterfeit Currency
Chad John Gilman, age 42, of Ladson, was charged in an Indictment with one count of Manufacturing Counterfeit Currency and two counts of Possession of Counterfeit Currency, in violation of Title 18, United States Code, Sections 471 and 472 respectively. The maximum penalty Gilman could receive is 20 years imprisonment and a fine of $250,000 for each count. The case was investigated by agents of Department of Homeland Security, Secret Service and is assigned to Assistant United States Attorney Dean H. Secor of the Charleston office for prosecution.North Charleston Mother and Daughter Charged with Theft of Government Property
Mary Hayre, age 68, and Pamela Jeridore, age 44, both of North Charleston, were charged in a one-count Indictment with Theft of Government Property, a violation of Title 18, United States Code, Sections 641 and 2. The maximum penalty each defendant could receive is 10 years imprisonment and a fine of $250,000. The case was investigated by agents of the U.S. Department of Housing and Urban Development-Office of Inspector General (HUD-OIG) and is assigned to Assistant United States Attorney Dean H. Secor of the Charleston office for prosecution.Charleston Restaurant Owner Charged with False Statement and Obstruction of Proceedings before Department of Labor
Jose Jamie Villalpando, a/k/a Jose Jamie Villapondo, age 47, of Charleston, and owner of Senor Tequila Restaurant in Charleston, was charged in a four-count indictment with one count of False Statement, a violation of Title 18, United States Code, Section 1001(a)(1) and three counts of Obstruction of Proceedings before Departments, in violation of Title 18, United States Code, Section 1505. The maximum penalty Villalpando could receive for False Statement is 5 years imprisonment and a $250,000 fine, and the maximum penalty he could receive for each count of Obstruction of Proceedings before Departments is 5 years imprisonment and a $250,000 fine. The case was investigated by agents of Department of Labor-Office of Investigation (DOL-OIG) and is assigned to Assistant United States Attorney Dean H. Secor of the Charleston 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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"Aiken Safe Communities": Two Men Sentenced on Federal Gun ChargesRead the Press Release
Contact Person: Lance Crick (864) 282-2100
COLUMBIA, South Carolina ---- United States Attorney Bill N. Nettles, stated today that two Aiken men, Jesse James Quarles, 34, and Kenneth Islar, 29, were sentenced in federal court in Columbia, each on charges of felon in possession of a firearm, a violation of Title 18, United States Code, Section 922(g)(1). Quarles, classified as an Armed Career Criminal based on his extensive criminal history, was subject to a statutory mandatory minimum of 15 years in prison and was sentenced to a term of imprisonment of 180 months. The Court sentenced Islar to 75 months in prison.
Quarles and Islar were indicted in July 2014 by a federal grand jury in separate indictments and entered guilty pleas in October. As to Quarles, evidence presented at the guilty plea hearing revealed that Quarles possessed a 9mm pistol while at a residence in Aiken County in April 2013. As to Islar, on May 30, 2014, he possessed and discharged a .380 caliber pistol in the Bi-Lo parking lot in Aiken. District Judge J. Michelle Childs of Columbia accepted the guilty pleas and sentenced both defendants Quarles and Islar previously waived their right to a detention hearing in October and remain in custody.
Prior to the federal firearms prosecution, Quarles and Islar were selected to participate in the Aiken Safe Communities. Launched in early 2013, the Aiken Safe Communities Initiative is a unified, proactive community approach to engage, educate, and encourage recurring offenders to change their behavior and make healthy life choices. The initiative also bands together local, state, and federal law enforcement to expedite the investigation and prosecution of individuals who reoffend in lieu of accepting opportunities and assistance offered by the community during public notification meetings held in Aiken several times a year. The next Safe Communities Offender Notification meeting will be held at 6pm on Thursday, May 14, 2015, at Aiken City Hall. The meeting is open to the public.
From 2012-2013, the city of Aiken experienced an 86% reduction in murders. Earlier this year, the South Carolina Community Development Association presented the city of Aiken with its 2014 Award of Excellence, recognizing community development efforts that have significantly improved the quality of life in the community.
Both cases were investigated by the ATF Regional Anti-Gang Enforcement (RAGE) Unit, a joint gang/violent crime task force with the Aiken Department of Public Safety, Aiken County Sheriff’s Office, North Augusta Department of Public Safety, Richmond County Sheriff’s Office, South Carolina Law Enforcement Division, the 2nd Circuit Solicitor’s Office (Aiken, Bamberg, and Barnwell counties), and the Bureau of Alcohol, Tobacco, Firearms and Explosives. These prosecutions as well as the United States Attorney’s Office ongoing commitment to the Aiken Safe Communities Initiative are part of Operation CeaseFire. CeaseFire is a joint local, state, and federal initiative which seeks to prosecute aggressively individuals who unlawfully use, possess, or transfer firearms. Both cases are assigned to Assistant United States Attorney Lance Crick of the Greenville office.
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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 Greenville, South Carolina, returned Indictment(s) against the following:
Easley Woman Indicted for Delay of Mail by a Postal Employee
Heidi Feil, age 37, of Easley, 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 Feil 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.Spartanburg County Man Indicted for Delay of Mail by a Postal Employee
Joseph B. Bond, age 58, of Moore, 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 Bond 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.Fountain Inn Resident Indicted for Possession of Child Pornography
Kenneth E. Brewer age 37, of Fountain Inn, South Carolina, was charged in a single-count indictment with possession of child pornography, a violation of 18 U.S.C. § 2252A(a)(5)(B). The maximum penalty Brewer could receive is not less than ten years and not more than twenty 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. 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.Foreign Nationals Charged with Illegal Re-entry
Rubio Carrillo-Domingo, Carlos Eduardo Alvarado-Santos, Ricardo Bautista-Hernandez, Jorge Brito-Villalba, Felipe Ruedas-Campos, Roberto Gonzalez-Valencia, Enrique Romeo Riz-Barrera, and Miguel Vidal-Lopez, 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 one to twenty years imprisonment. These cases were investigated by U.S. Immigration and Customs Enforcement (ICE) 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.
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"C-S.T.A.N.D", "Call-in Meeting"Read the Press Release
Contact Person: Lance Crick (864) 282-2100
“Call-in Meeting”, Wednesday April 15, 2015 at 5:30pm
Conway Recreation Center, 1515 Mill Pond Road, Conway, SC 29526COLUMBIA, South Carolina ---- United States Attorney Bill Nettles stated today that a “call-in meeting” will be held Wednesday, April 15, 2015 at 5:30 pm at the Conway Recreation Center, 1515 Mill Pond Road, Conway, SC 29526. This meeting is open to the public. The program, “C-S.T.A.N.D” 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 most recently utilized in the Charleston Farms community in North Charleston beginning in 2011. This 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 last Thursday, several letters, in lieu of arrest warrants, were delivered by law enforcement to lower level targets notifying them of the meeting.
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Greenwood Man Pleads Guilty to Conspiring to Defraud the VARead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Charles B. Harris, age 48, of Ninety-Six, South Carolina, pled guilty yesterday in federal court in Anderson, to conspiracy to defraud the United States. United States District Judge Timothy M. Cain of Anderson accepted the plea and will sentence Harris after the U.S. Probation Office has prepared a pre-sentence report.
Evidence presented at the change of plea hearing established that from 2011-2014 Harris owned and operated the Greenwood Barber College. The school was approved by the VA to teach veterans the skill of barbering. Harris was the certifying official who agreed to accurately monitor and report student attendance and academic progress.
In December 2013, the Department of Veterans Affairs received a complaint that Harris was conspiring with various veterans in stealing Government funds. Agents opened an investigation and interviewed several of Harris’ students. The students told agents that so long as they paid Harris $400 per month, he did not require them to attend class. Harris would falsify documents indicating their attendance and progress so the students could continue to receive VA educational benefits.
On February 6, 2014, agents interviewed Harris at the Greenwood Barber College. Harris admitted to helping veterans sign up for the Veteran Retraining Assistance Program (“VRAP”) and other VA programs offering financial aid for career training. He would then enroll them in the Greenwood Barber College. Harris admitted that he would not require the veterans (whether VRAP or another program) to actually attend classes at the Greenwood Barber College and that he would falsify records documenting the attendance and performance of the veterans. So long as the veterans paid Harris $400 per month, he kept them enrolled in the school. Harris said that he knew what he did was wrong and was he was sorry. Agents estimate that the actual loss to the VA is greater than $140,000.
Mr. Nettles states that the maximum penalty Harris could face is 5 years in prison, and/or a $250,000 fine, 3 years of supervised release, and a special assessment of $100.
The case was investigated by agents of the Department of Veterans Affairs, Office of the Inspector General. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
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Two Cardiovascular Disease Testing Laboratories to Pay $48.5 Million to Settle Claims of Paying Kickbacks and Conducting Unnecessary TestingRead the Press Release
Contact Person: James Leventis (803) 929-3000
COLUMBIA, SOUTH CAROLINA – United States Attorney Bill Nettles announced today that Health Diagnostics Laboratory, Inc. (HDL), of Richmond, Virginia, has agreed to pay $47 million, and laboratory Singulex, Inc. of Alameda, California, has agreed to pay $1.5 million to resolve allegations that they violated the False Claims Act by paying remuneration to physicians in exchange for patient referrals and billing federal health care programs for medically unnecessary testing. The government has intervened in three False Claims Act lawsuits based on similar allegations by laboratory Berkeley HeartLab, Inc.; marketing company BlueWave Healthcare Consultants, Inc., and its owners, Floyd Calhoun Dent and J. Bradley Johnson; and former Chief Executive Officer of HDL, Latonya Mallory.
“This marks the culmination of a three year investigation into these corporations, and the individuals that benefited from this fraud can now expect to receive our full attention,” said U.S. Attorney Bill Nettles.
The United States alleged that laboratories HDL, Singulex, and Berkeley induced physicians to refer patients to them for blood tests by paying them process and handling fees of between $10 and $17 per referral and by routinely waiving patient co-pays and deductibles. The government also alleged that HDL and Singulex conspired with BlueWave to offer kickbacks to physicians on behalf of HDL and Singulex. As a result of those kickbacks, physicians referred patients to HDL, Singulex, and Berkeley for medically unnecessary tests. HDL, Singulex, and Berkeley then submitted claims to federal health care programs, including Medicare, for payment for the medically unnecessary tests. The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federally funded programs. The Anti-Kickback Statute is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient.
The government actions announced today stem in large part from two whistleblower complaints filed in the District of South Carolina by Dr. Michael Mayes, Scarlett Lutz, and Kayla Webster under the qui tam provisions of the False Claims Act. Under that Act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The whistleblowers’ share of the settlements has yet to be determined. The Act also permits the United States to intervene in the lawsuits and take over the allegations, which were not the subject of the settlements announced today.
“The District of South Carolina has more than doubled its resources allocated to the pursuit of fraud brought to our attention by whistleblowers,” said U.S. Attorney Nettles. “Whistleblower actions are a critical tool for holding health care providers accountable for fraudulent and abusive practices not only in South Carolina but nationwide.”
As part of these settlements, HDL and Singulex have agreed to enter into separate corporate integrity agreements with the Department of Health and Human Services, Office of Inspector General (HHS-OIG). Those agreements provide for procedures and reviews to be put in place to avoid and promptly detect conduct similar to that which gave rise to these settlements.
Two of the lawsuits separately allege that the former Chief Executive Officer of Singulex, Phillipe Goix, and Quest Diagnostics, Inc., parent of Berkeley, are liable for the scheme; the government has declined to intervene in the allegations against Mr. Goix and Quest.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $23.8 billion through False Claims Act cases, with more than $15.2 billion of that amount recovered in cases involving fraud against federal health care programs.
These matters were investigated by the U.S. Attorney’s Office for the District of South Carolina, the U.S. Attorney’s Offices for the District of Columbia and the Middle District of North Carolina; the Commercial Litigation Branch of the Justice Department’s Civil Division; HHS-OIG; the FBI; the U.S. Office of Personnel Management Office of Inspector General and the Department of Defense Office of Inspector General, Defense Criminal Investigative Service.
The cases are captioned United States ex rel. Mayes v. Berkeley HeartLab Inc., et al., Case No. 9:11-CV-01593-RMG (D.S.C.); United States, et al. ex rel. Lutz, et al. v. Health Diagnostic Laboratory, Inc., et al., Case No. 9:14-CV-0230-RMG (D.S.C.); and United States ex rel. Riedel v. Health Diagnostic Laboratory, Inc., et al., Case No. 1:11-CV-02308 (D.D.C.). The claims settled by these agreements and asserted against these companies and individuals are allegations only, and there has been no determination of liability.
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"C-S.T.A.N.D.": Four Conway Men Indicted 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 four Conway men, Marcus Dalton Hemingway, a/k/a “Face,” age 36, Marco Delton Hemingway, a/k/a “Co-Teezy,” a/k/a “Co,” age 36, Albert Tyrone Mayes, a/k/a “JT,” age 40, and Robert Hemingway, Jr., a/k/a “Booda,”age 34, indicted earlier this year by a federal grand jury in a sealed indictment charging a cocaine and crack cocaine conspiracy, a violation of Title 21, United States Code, Section 846, appeared in federal court in Florence this afternoon for arraignment. During the hearing, the government requested that all four defendants be detained. All four defendants entered not guilty pleas, waived their right to a detention hearing, and remain in federal custody.
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.
This indictment, unsealed today, follows a year-long undercover investigation by local, state, and federal law enforcement. The undercover operation yielded multiple drug purchases by undercover officers from dealers in the Conway community. The indictment 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 most 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 today, several letters, in lieu of arrest warrants, were delivered today by law enforcement to lower level targets notifying them of a “call-in meeting” to be held next Wednesday, April 15, 2015, at the Conway Recreation Center located at 1515 Mill Pond Road, Conway, South Carolina, 29526. This meeting is open to the public.
Members of the law enforcement team involved in this initiative include 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 Solicitors Office, the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), 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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Women Pleads Guilty to Embezzling from Aiken Law FirmRead the Press Release
Contact Person: Winston Holliday (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Tonya M. Hair, age 43, of Jackson, South Carolina, has entered a guilty plea in federal court in Columbia to Uttering Forged Securities, a violation of 18 U.S.C. § 513, and Access Device Fraud, a violation of 18 U.S.C. § 1029(a)(1). United States District Judge J. Michelle Childs of Columbia accepted the guilty plea and will sentence Hair at a later date.Evidence presented at the change of plea hearing established that Hair worked as an administrative assistant in an Aiken law firm. She used various credit cards and bank accounts of the law firm to divert money to herself, starting in mid-2006 and lasting through early 2013. Investigators identified approximately $270,000 in unlawful transactions attributable to Hair.
Mr. Nettles stated the maximum penalty for both Uttering Forged Securities and Access Device Fraud is imprisonment for ten years and/or a fine of $250,000.
The case was investigated by agents of the United States Secret Service. Assistant United States Attorney Winston David Holliday, Jr. of the Columbia office is prosecuting the case.
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Myrtle Beach Attorney Pleads to Money LaunderingRead the Press Release
Contact Person: Bill Day (803) 929-3000
Evans previously pled guilty for his involvement in the Ponzi scheme related to this case and was sentenced to 7 years imprisonment. Weaver pled guilty to mail fraud and is waiting to be sentenced.
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Larkin Thaddeus Viers, age 36, of Myrtle Beach, South Carolina has entered a guilty plea in federal court in Florence, to money laundering, a violation of 18 U.S.C. § 1957. United States District Judge Brucie Howe Hendricks of Charleston accepted the guilty plea and will impose sentence after she 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 Marlon 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. Weaver provided a financial statement reflecting assets that SafeCo would be entitled to if Weaver Co. caused losses to SafeCo. Reflected on this financial statement were 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 back-dated documents to make it appear that he had transferred his interest in the Gold and Silver, LLC and Bucks Port Marina to his daughters on September 1, 2009, prior to defaulting on the project. In fact, Weaver retained control of the assets at all times. Weaver mailed these back-dated, 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 December 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 prior to SafeCo incurring losses, Evans agreed to back-date documents to reflect that Weaver’s investment was transferred to the daughter on September 1, 2009. These documents were also mailed to SafeCo’s attorney on April 26, 2010.
Weaver hired 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 at Anderson Brothers Bank on December 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. After earning approximately $30,000 in legal fees, Viers returned the remainder of the funds 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 First Citizens 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 in increments of less than $10,000.00, to avoid bank filings.
In January 2011, Viers set up a trust account at the First Citizens Bank, 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 bank 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, so that Evans could structure deposits into his bank accounts. This cycle of banking activity was repeated numerous times. Between 1/21/2011 and 10/3/2011, $692,000 was credited to Vier’s First Citizen’s Trust 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.
During the course of this conspiracy, Viers either knew the funds involved were proceeds of some criminal activity, or he was aware of a high probability the funds were the proceeds of some criminal activity and he deliberately avoided learning of the activity, i.e. he deliberately made himself blind to that fact. The funds involved were proceeds of criminal activity as Weaver committed mail fraud when he mailed SafeCo’s attorney back-dated documents concerning the sale of the marina and his investments with Gold & Silver.
Mr. Nettles stated the maximum penalty for money laundering is imprisonment for 10 years and/or a fine of $250,000. 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. #####Former Florence Resident Sentenced for Theft of Government Funds and Identity TheftRead the Press Release
Contact Person: Bill Day (803) 929-3000
Florence, South Carolina ---- United States Attorney Bill Nettles stated today that Don Carlos Gibson, Jr., age 48, of Church Hill, Tennessee and formally of Florence, South Carolina, was sentenced in federal court in Florence for Theft of Government Funds, a violation of 18 U.S.C. § 641, and Identity Theft, a violation of 18 U.S.C § 1028A(a)(1). United States District Judge R. Bryan Harwell of Florence sentenced Gibson to seven years imprisonment to be followed by three years of Supervised Release and also ordered Gibson to pay $811,592.07 in restitution.Evidence presented at the change of plea hearing and sentencing established that Gibson collected disability payments from the Department of Veterans Affairs (VA) and the Social Security Administration (SSA) from 1997 to 2013 by falsely claiming he was unable to work. During the time Gibson claimed to be disabled, he attended golfing school in Myrtle Beach and was the general manager of a country club in North Carolina, a car salesman in North and South Carolina, and the pastor of a church in South Carolina and Oklahoma. Gibson's fraud caused losses of $352,576 to the VA and of $407,184 to the SSA. Gibson also caused losses of $51,832 to an individual he defrauded while working as a pastor in Oklahoma. Gibson also used another person’s identity to purchase automobiles and boats and to obtain loans in South Carolina, Tennessee, Oklahoma and Florida.
The case was investigated by agents of the Office of Inspector General (OIG) Department of Veterans Affairs and OIG Social Security Administration. Assistant United States Attorney William E. Day, II of the Columbia office is prosecuting the case.
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Nine More Lottery Scam Defendants SentencedRead the Press Release
Contact Person: Eric Klumb (843) 727-4381
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that nine more defendants were sentenced for their roles in a bogus lottery scam that targeted elderly victims around the country, by notifying them that they had won a lottery or sweepstakes, but needed to pay fees or taxes in advance in order to receive their winnings. A total of 18 individuals were indicted in the case; three other defendants had previously been sentenced. United States District Judge R. Bryan Harwell, of Florence, citing the devastating impact on the more than 150 victims of the scam, imposed the following prison terms: Wayne Duffus, 30, of Little River, 156 months; LeGrant Allen, 30, of Charlotte, NC, 15 months; Lorenzo Samuels, 28, of Riverdale, Georgia, 24 months; Denisha Robinson, 27, of Little River, 21 months; Johnte Vereen, 32, of Conway, 19 months; Cameo West, 27, of Little River, 5 months plus 5 months home detention; Jaclyn Freeman, 24, of Little River, 6 months plus 6 months home detention; Kimesha Lewis, 28, of Wilkesboro, NC, 5 months plus 5 months home detention; and Damion McLeish, 34, of North Myrtle Beach, 15 months. Each was ordered to pay restitution in the amount of $839,827.The case was investigated by Special Agents with Homeland Security Investigations (HSI) and Inspectors with the United States Postal Inspection Service (USPIS). Assistant United States Attorneys A. Bradley Parham and Eric Klumb are prosecuting the case.
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Chicago Attorney Guilty of Large Scale Fraudulent Investment SchemeRead the Press Release
Contact Person: David Stephens (864) 282-2100
Greenville, South Carolina ---- United States Attorney Bill Nettles announced that Kathleen Niew, of Chicago, Illinois, pled guilty in Columbia, South Carolina, today to three counts of Wire Fraud in violation of Title 18, United States Code, Section 1343. Niew faces a possible sentence on each count of up to 20 years in prison and a fine of up to $250,000.00. The plea was accepted by United States District Judge Mary G. Lewis, who will sentence Niew after an investigation by the United States Probation Office.
Mr. Nettles stated that the case was investigated by the Federal Bureau of Investigation (FBI) along with Assistant United States Attorney David C. Stephens who prosecuted the case. At the guilty plea hearing, Mr. Stephens advised the Court of the following facts.
The FBI working out of Greenville, South Carolina, has conducted a decade long undercover operation into persons offering bogus investments commonly referred to as High Yield Investment Programs. In these schemes, victims are told that there are secret European medium term note trading programs that are risk free and yield returns of as much as 100% per month. Such trading programs, of course, do not exist; however, the “pitch” can be so convincing that the U. S. Department of the Treasury has documented tens of millions of dollars of losses every day.
Niew was one of over 150 persons caught in the undercover operation. She was recorded on the telephone offering one of these bogus investments to persons she believed were potential investors in South Carolina. Niew then traveled to South Carolina and met in person with the investors who she was led to believe controlled the investment funds of a large national charity. The amount that she sought to obtain was $100 Million. Unbeknownst to Niew the persons she was dealing with were FBI Special Agents pretending to be potential investors and her entire fraudulent presentation was being videotaped.
Mr. Stephens also advised the Court that in addition to the above-described attempted fraud, it is believed that Niew stole millions of dollars from actual investors and the names of those persons and their exact losses continue to be investigated. Mr. Nettles asked that anyone who has had financial dealings with Niew and lost money in those dealings to please contact his Victim-Witness Coordinator at (803) 929-3000 or Mr. Stephens at (864) 282-2100.
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Williamsburg County Sheriff, Columbia Man Sentenced for FraudRead the Press Release
Contact Person: Winston Holliday (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that former Williamsburg County Sheriff Michael L. Johnson, age 39, of Salters, South Carolina, and Lester L. Woods, age 49, of Columbia, South Carolina, were sentenced today for Conspiracy to Commit Wire Fraud, a violation of Title 18, U. S. C. §1349. Chief United States District Judge Terry L. Wooten sentenced Johnson to 30 months imprisonment and Woods to 33 months imprisonment. The Court also ordered restitution and imposed 3 years supervised release to follow the terms of imprisonment. Both were convicted in September 2014 after a four-day trial.
Evidence presented at the trial established that Lester Woods held himself out as a credit repair specialist. People would come to him to raise their credit scores, sometimes paying him over $1,000. He then got in touch with former Sheriff Michael Johnson.
Johnson would write up police reports, or incident reports, saying that a particular client of Woods had been a victim of identity theft in Williamsburg County. He would then send the incident report to Woods.
Woods would often write out a cover page of accounts that supposedly were fraudulent, attach the incident report Johnson wrote, and fax it to Equifax. Once Equifax received the report, it relied on the information sent by Woods and Johnson as true and deleted those debts and other derogatory information from Woods’ clients’ credit history. When the bad debts were removed from the credit history, the credit score of the client would often go up. This made it more likely that the client could be extended credit or get more loans, but since the underlying debt often remained, the client was much more likely to default on the new debt.
In all, Woods and Johnson caused to be suppressed over $11 million dollars in credit information.
United States Attorney, Bill Nettles, stated “Abuse of public office is an abuse of public trust, which is illegal. Our office will continue to place these prosecutions at the top of our priority list.”
The case was investigated by agents of the Federal Bureau of Investigation. Assistant United States Attorney Winston Holliday of the Columbia office prosecuted the case.#####
Verdict Against Baltimore Man UpheldRead the Press Release
Contact Person: John Potterfield (803) 929-3000
Columbia, South Carolina---- United States Attorney Bill Nettles stated today that a guilty verdict against Charles Brown, of Baltimore, Maryland was upheld.
Evidence presented at the trial established that the Department of Veteran's Affairs invited bids on a contract which was set aside for Service Disabled Veteran Owned Small Businesses. The defendant, Charles Brown, bid on the contract, asserting that Executive Medical Transport, LLC, a Columbia based company qualified as disabled veteran owned. The evidence produced at trial further established that although a disabled veteran was listed as an owner of the company, that veteran rarely visited the company and did not exercise control over the operations of the company.
On February 11, 2015, Brown was convicted of seven counts of Wire Fraud. Brown moved to have those verdicts set aside. Today, that motion was denied and the verdicts of the jury upheld.
The case was investigated by agents of the Department of Veteran's Affairs Office of Inspector General. Assistant United States Attorney John C. Potterfield of the Columbia office prosecuted the case.#####
Notice of Court ProceedingsRead the Press Release
Contact Person: Winston Holliday (803) 929-3000
WHEN: Wednesday, March 25, 2015, 9:30 a.m. WHERE:
COLUMBIA, SOUTH CAROLINA -- United States Attorney Bill Nettles stated today that a sentencing hearing has been scheduled in the case of United States v. Lester Woods and Michael Johnson, Case No. 3:14-0093. Chief United States District Court Judge Terry L. Wooten will preside.Matthew J. Perry Courthouse
901 Richland Street, Courtroom # 5, Columbia, SC
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Final Member of Identity Theft and Tax Conspiracy Sentenced to 37 MonthsRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Kimberly J. Demata, age 30, of Miami, Florida, was sentenced today in federal court in Anderson, for to conspiracy to defraud the United States. United States District Judge Timothy M. Cain of Anderson sentenced Demata to 37 months imprisonment and ordered her to pay over $91,000 in restitution. She is the last member of the conspiracy to be sentenced. Earlier, Judge Cain sentenced Yeedser D. Palacios, age 33, Wandy A. Fabre, age 29, and Charles Law, age 28, all of Miami, Florida, to 75 months imprisonment, 54 months imprisonment, and 51 months imprisonment, respectively.
Evidence presented at the change of plea hearing established that in February 2013, Fabre, Palacios, and Charles Law traveled to South Carolina for the purpose of filing fraudulent income tax returns and receiving bogus refunds. The three men rented a local hotel room and waited while Kimberly Demata sent them the names, dates of birth, and social security numbers that had been stolen. The trio used this information to file tax returns and directed that the refunds, through H&R Block Bank, be sent to various addresses in Mauldin, South Carolina. Law, Fabre, and Palacios routinely checked mail boxes for the H&R Block debit cards containing the refund amount. For returns that they filed using Florida addresses, Demata would check the mail boxes for the cards.
Law enforcement discovered the conspiracy when a citizen reported seeing a Ford Expedition stopping by various mail boxes in his neighborhood. The Mauldin Police Department and U.S. Postal Inspectors conducted surveillance and arrested the three conspirators after watching them pull items from a local box. Further investigation revealed that the conspirators filed over 60 fraudulent returns. The average amount of refund claimed was between $5000 and $7000. Law enforcement estimates that the conspiracy stole over $350,000 before the first arrests were made on March 15, 2013.
The case was investigated by agents of the Mauldin Police Department, the United States Postal Inspection Service, and the Internal Revenue Service. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.#####
Three Sentenced in Income Tax Refund SchemeRead the Press Release
Contact Person: T. DeWayne Pearson (803) 929-3000
Columbia, South Carolina - United States Attorney Bill Nettles stated today that Ivon Martinez, age 40 of West Columbia, Alonzo Leon Ortega, age 42 of Lexington, and Francisco Campos Aguilar of Woodruff were sentenced in connection to a scheme to receive over $1.4 million dollars in fraudulent income tax refund checks from the United States Treasury. Leon-Ortega and Campos-Aguilar each entered guilty pleas to one count of conspiracy in violation of 18 United States Code, Section 371. Martinez pleaded guilty to unlawful identification document transfer in violation of 18 United States Code, Section 1028(a)(2) and aggravated identity theft in violation of 18 United States Code, Section 1028A. According to facts presented during the guilty plea hearing, Martinez bought or stole IRS form W-2s from migrant workers in and around the Lexington County area. Martinez and other members of the conspiracy used the W-2 forms to file fraudulent income tax returns, often adding multiple fictitious dependents to inflate the amount of the refunds. Ortega and Aguilar would then use forged Mexican Consular Identification Cards to cash the refund checks at retail locations around Lexington County. Martinez received a sentence of 42 months of incarceration, Leon Ortega received a sentence of 1 year of incarceration and Campos Aguilar received 8 months of home confinement and 5 years’ probation. In addition, all three defendants face possible deportation. Sentencing dates for the other members of the scheme have not been set.
“The IRS is aggressively pursuing those who steal others' identities in order to file false returns,” said Thomas J. Holloman, III, Special Agent in Charge, IRS Criminal Investigation. “Our cooperative work with the U.S. Attorney’s Office will help protect taxpayers in South Carolina from being victimized by identity theft. The IRS is taking additional steps this tax season to further prevent, detect and resolve identity theft cases as soon as possible.” The case was investigated by Special Agents with the IRS, the Department of Homeland Security/HSI, The United States Postal Service and the South Carolina Law Enforcement Division and was prosecuted by Assistant United States Attorney T. DeWayne Pearson of the Columbia office.####
“Caught on Video”: Final Defendant Sentenced in Federal Drug Conspiracy TrialRead the Press Release
Contact Person: A. Lance Crick (864) 282-2100
COLUMBIA, South Carolina ----- United States Attorney Bill Nettles stated today that Daniel Rodriguez, age 26, of Lilburn, Georgia, was sentenced to 155 months in federal prison earlier this afternoon in federal court in Greenville. Rodriguez, along with co-defendant, Jesus Buruca-Martinez, age 22, of Lawrenceville, Georgia, were found guilty after a federal trial in September 2014 of conspiracy to distribute 500 grams or more of methamphetamine, a violation of Title 21, United States Code, Section 846. Rodriguez was also found guilty of two counts of using a communication device (telephone) to facilitate the commission of a drug felony, a violation of Title 21, United States Code, Section 843(b). United States District Judge J. Michelle Childs presided over the trial and sentenced Rodriguez. Last month, Judge Childs sentenced Buruca-Martinez to a ten-year federal prison sentence.
Evidence presented at trial established that, beginning in early 2012, agents and task force officers with the DEA in Greenville, began investigating an upstate-based methamphetamine distribution network that was being sourced with pounds of methamphetamine from individuals in the Atlanta-area. Ultimately, over a two-year investigation and some seven superseding indictments, twenty-seven defendants were indicted in the conspiracy, with twenty-five entering guilty pleas. The investigation revealed that two members of this conspiracy, Dustin Tiller and Nicanor Perez-Rodriguez, both inmates in the South Carolina Department of Corrections at the time, contacted members of their families on the outside to arrange for methamphetamine to be transported from Georgia into South Carolina for further distribution.
After identifying Daniel Rodriguez as a Georgia-based member of the conspiracy who was making frequent trips to South Carolina to bring methamphetamine as well as collect drug proceeds, members of the Anderson County Sheriff’s Office and Anderson City Police Department were able to establish surveillance on Rodriguez, on Sunday, August 5, 2012, as Rodriguez met with other members of this conspiracy, to include Jesus Buruca-Martinez, in the parking lot of a restaurant, located off of Exit 19, Interstate 85, in Anderson County.
Agents then maintained surveillance on Rodriguez and Buruca-Martinez as they traveled in tandem, both driving separate vehicles, to a residence in Belton, South Carolina. Maintaining surveillance on the Belton residence, agents observed Buruca-Martinez leave the residence, followed by Rodriguez’s departure some twenty minutes later. Traffic stops were conducted on both vehicles and law enforcement seized $20,240 in cash from Buruca-Martinez.
Following the execution of a federal search warrant at the Belton residence and the arrest of Rodriguez, Buruca-Martinez, and others, that evening, agents reviewed a home surveillance system seized in the search. The surveillance system had an operational camera imaging the living room of the residence, attached to a digital video recording (DVR) system. In reviewing the images on the DVR, which dated back some two weeks from the incident date, agents observed Rodriguez arriving at the residence on two previous occasions in July 2012.
Regarding the activity inside the residence on August 5, 2012, a review of the video revealed Rodriguez, Buruca-Martinez, and third co-conspirator, who rode with Rodriguez that day from Georgia, counting, for several minutes, over $20,000 in cash. Witnesses testified that this cash was partial payment applied to the overall drug debt owed to Rodriguez and others for pounds of methamphetamine previously provided on consignment. As the money count concluded, the video showed Buruca-Martinez bundling two cash parcels, placing one in each cargo short pocket, and exiting the residence, ultimately heading south on Interstate 85 before he was stopped by law enforcement.
Nettles stated that the case was investigated and prosecuted by members of the Organized Crime and Drug Enforcement Task Force (OCDETF), a taskforce coordinated by the United States Attorney’s Office. Members of the task force involved in this investigation included the Anderson County Sheriff’s Office, the Anderson City Police Department, the South Carolina Highway Patrol, the Department of Homeland Security, and the Drug Enforcement Administration. Assistant United States Attorneys Andy Moorman and Lance Crick of the Greenville office handled the prosecution.####
HHS OIG Top 10 Most Wanted Sentenced to 57 Months PrisonRead the Press Release
Contact Person: Jim May (803) 929-3000
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Columbia, South Carolina---- United States Attorney Bill Nettles stated that Karo Gotti Blkhoyan, a/k/a “Gotti,” age 34, of Glendale, California was sentenced last week in federal court in Columbia, South Carolina, for Conspiracy to Commit Money Laundering , a violation of 18 U.S.C. § 1956(h). Senior United States District Judge Cameron McGowan Currie of Columbia sentenced Blkhoyan to 57 months and three years supervised release. Blkhoyan was fugitive for approximately two years, when was arrested at the San Francisco International Airport attempting to re-enter the country.
Evidence presented established that the conspiracy was a transnational criminal organization that established a “ghost” medical clinic in South Carolina using stolen information from a South Carolina doctor. Members of the conspiracy enrolled the clinic in Medicare, established bank accounts, linked the bank accounts to a fictitious address which was a mailbox store, registered the clinic with the South Carolina Secretary of State, and began to bill Medicare. All together, the “ghost” clinic billed Medicare over 1.1 million dollars, with Medicare paying approximately $350,000 worth of claims. The money that was paid was laundered through Southern Californian banks and shell businesses by members of the conspiracy. During the sentencing hearing, Blkhoyan challenged his role in the conspiracy; however, the Court found that the defendant was a manager/supervisor of the conspiracy which increased his sentencing guidelines. Two other members of the conspiracy have previously pleaded guilty to laundering money. Four members of the conspiracy are currently international fugitives.
United States Attorney, Bill Nettles, stated ““When the rich take things that don’t belong to them they want us to call it fraud. But let’s be clear, it is stealing, it is wrong and against the law. He stole from all of us. We will continue to aggressively prosecute those who steal from us. Let there be no doubt about that.”
“Healthcare fraud is undoubtedly a lucrative business, but the business of IRS Criminal Investigation and our law enforcement partners, is to pursue criminals such as Karo Blkhoyan, and bring them to justice, no matter where they may attempt to hide.” said Thomas J. Holloman, III, Special Agent in Charge, IRS Criminal Investigation. “Blkhoyan’s sentence is a warning to others that would defraud Medicare and steal from the programs that provide assistance for individuals in need. We will investigate every dollar, every fraudulent claim, and when you are found, you will go to prison.”
"Our agency is dedicated to investigating those responsible for health care fraud, including this former Most Wanted health care fugitive, who stole scarce taxpayer money meant to pay for legitimate patient care,” said Special Agent in Charge Derrick L. Jackson, of the U.S. Department of Health and Human Services, Office of Inspector General’s Atlanta region. “Working closely with our law enforcement partners, our agents are determined to hold such fraudsters accountable for their crimes."
“Health care fraud affects every American. Waste, fraud and abuse take critical resources out of our health care system, and contribute to the rising cost of health care for all Americans. The sentencing of Karo Blkhoyan, shows the commitment of the FBI to stop those who would illegally manipulate the system. We are pleased with Blkhoyan’s sentence to 57 months,” stated Special Agent Charge, David A. Thomas, Columbia FBI Field Office.
The case was investigated by agents of the HHS OIG, IRS CID and FBI. Assistant United States Attorney Jim May of the Columbia office prosecuted the case.Former Charter School Director Convicted of Embezzling Government FundsRead the Press Release
Contact Person: Winston Holliday (803) 929-3000
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Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that a jury convicted Benita Dinkins-Robinson, age 40, of Bishopville, South Carolina, after a ten day trial in federal court. Dinkins-Robinson was convicted of two counts of embezzling government funds (18 U.S.C. § 641). United States Chief District Judge Terry Wooten of Columbia presided over the trial. He will impose sentence after he has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Attorneys presented evidence at the trial and during the asset forfeiture phase of the case 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.
Mr. Nettles stated that Dinkins-Robinson faces a maximum sentence of ten years’ imprisonment for each count.
The conviction was the result of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Winston Holliday and Ben Garner of the Columbia office handled the case.Former South Carolina Congaree Chief of Police Pleads Guilty to Lying to Federal Grand JuryRead the Press Release
Contact Person: Jay Richardson (803) 929-3000
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Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Jason Amodio (46) of Lexington, South Carolina has entered a guilty plea in federal court in Columbia, to Lying to a Federal Grand Jury, a violation of 18 U.S.C. § 1623. Senior United States District Judge Joseph F. Anderson, Jr. of Columbia accepted the guilty plea.
Evidence presented at the change of plea hearing 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.
“Mr. Amodio went before the federal grand jury, swore on the Bible to tell the truth, and lied; that is a crime,” said United States Attorney Bill Nettles. “This is another joint investigation by the S.C. Attorney General’s Office and the U.S. Attorney’s Office, along with the FBI and SLED, in our ongoing coordinated partnership to prosecute public corruption on all levels.”
As part of his agreement to plead guilty and cooperate with law enforcement, Amodio agreed to be sentenced to four years of probation with eight months of home confinement with electronic monitoring. Additionally, Amodio has agreed to plead guilty in state court to 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 H. May and Assistant Deputy Attorney General Creighton Waters.Notice of Court ProceedingsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
When: Today, Wednesday, March 11, 2015 at 10:30 a.m Where: Matthew J. Perry Courthouse
Columbia, South Carolina – An evidentiary hearing is scheduled in United States v. Jonathan Pinson. 3: 12-974. United States District Court Judge David C. Norton will preside over the proceeding.
901 Richland Street, Courtroom # 1
Columbia, SC 29201 # # # #Money Launderer for Lottery Scam ConvictedRead the Press Release
Contact Person: Eric Klumb (843) 727-4381
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Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that a federal jury sitting in Florence, South Carolina, found Woody Graham, 36, guilty of conspiracy to commit money laundering. Graham was wiring fraud proceeds to Jamaica on behalf of a group running a bogus lottery scam that targeted elderly victims around the country, notifying them that they had won a lottery or sweepstakes, but that they needed to pay fees or taxes in advance in order to receive their winnings. A total of 18 individuals have been indicted in the case; 15 have entered guilty pleas; three have been sentenced to prison terms. United States District Judge R. Bryan Harwell, of Florence, presided over the trial, which lasted two days.
The case was investigated by Special Agents with Homeland Security Investigations (HSI) and Inspectors with the United States Postal Inspection Service (USPIS). Assistant United States Attorneys A. Bradley Parham and Eric Klumb are prosecuting the case.Notice of Court ProceedingsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
When: Thursday, March 12, 2015 at 10:00 a.m. Where:
Columbia, South Carolina
Matthew J. Perry, Jr., Courthouse
901 Richland Street, Courtroom #4
Columbia, SC 29201
Additional Details: This is a joint investigation of the FBI, SLED, the South Carolina Attorney General’s Office and the United States Attorney’s Office into public corruption. The case is being prosecuted by Assistant U.S. Attorneys Jim May and Jay Richardson of the Columbia Office. #####Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
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Columbia, South Carolina - United States Attorney Bill Nettles stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictment(s) against the following:
Mauldin Middle School Teacher Indicted for Possession and Distribution of Child Pornography
Daniel Ray Archer, age 56, of Simpsonville, South Carolina, was charged in a 2-count indictment. Archer was charged with Possession of Child Pornography, a violation of Title 18, U. S. C. §2252A(a)(5)(B) and Distribution of Child Pornography, a violation of Title 18, U. S. C. §2252A(a)(2). The maximum penalty Archer could receive for each count is 20 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 officers of the Greenville 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.Attorney Enters Guilty Plea in Investment Fraud CaseRead the Press Release
Contact Person: T. DeWayne Pearson (803) 929-3000
Columbia, South Carolina - United States Attorney Bill Nettles stated today that Michael Mark McAdams, age 43, of Myrtle Beach, and Robert Dane Freeman, age 69, of Greenville, SC, have entered guilty pleas to conspiracy to commit wire fraud in violation of Title 18, United States Code, Section 1349. According to facts presented during the guilty plea hearing, McAdams and Freeman solicited millions of dollars from investors in connection with a scheme that purported to double or triple the victims’ money using a series of overseas banking transactions. McAdams was working as an attorney in Myrtle Beach, South Carolina and solicited clients into the fraudulent scheme. McAdams and Freeman used the funds invested by the victims for personal expenses. McAdams also used funds invested by new victims to make lulling payments in order to hide the scheme from previous victims. McAdams has been suspended from the practice of law by the South Carolina Supreme Court. Sentencing in the case has not yet been scheduled, but McAdams and Freeman face a maximum penalty of twenty years of imprisonment and a fine of $250,000. The case was investigated by Special Agents with the Federal Bureau of Investigations (FBI). The case was prosecuted by Assistant United States Attorney T. DeWayne Pearson of the Columbia office.####
Fountain Inn Man Sentenced to 27 Months for Mail Theft ConspiracyRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Salathiel D. Harrison, age 38, of Fountain Inn, South Carolina, has been sentenced in federal court in Anderson, to conspiracy to steal mail, a violation of Title 18, United States Code, Section 371. Senior United States District G. Ross Anderson, Jr. of Anderson sentenced Harrison to 27 months imprisonment. He also ordered Harrison to pay restitution to the victims of his crime.
The evidence at the change of plea hearing established that Harrison recruited individuals to steal mail containing checks and credit cards. Using the stolen credit card numbers, Harrison ordered expensive items and directed his recruits to pick up merchandise at various stores. Harrison also used the stolen credit card numbers to rent rooms for his recruits to stay in while they were working for him in the criminal activity. Law enforcement was able to locate video of Harrison passing stolen checks and retrieving a golf cart that he had purchased with the stolen credit card. Law enforcement estimates that Harrison stole over $6000 in merchandise before he was apprehended.
The case was investigated by agents of the United States Postal Inspection Service and the Greenville County Sheriff’s Office. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.#####
First Lottery Scam Defendants SentencedRead the Press Release
Contact Person: Eric Klumb (843) 727-4381
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Shadiki Brown, 29, of Little River, SC; Davion Bellamy, age 26, of Conway; and Ann Marie Yapp, age 44, of North Myrtle Beach were sentenced for their roles in a bogus lottery scam that targeted elderly victims around the country, notifying them that they had won a lottery or sweepstakes, but needed to pay fees or taxes in advance in order to receive their winnings. A total of 18 individuals were indicted in the case; the South Carolina three defendants are the first to be sentenced. Brown and Bellamy had previously entered guilty pleas in July, 2014, and Yapp in September. United States District Judge R. Bryan Harwell, of Florence, citing the devastating impact on the more than 150 victims of the scam, imposed prison terms of 78 months for Bellamy, 41 months for Brown, and 27 months for Yapp. Each was ordered to pay restitution in the amount of $839,827.
The case was investigated by Special Agents with Homeland Security Investigations (HSI) and Inspectors with the United States Postal Inspection Service (USPIS). Assistant United States Attorneys A. Bradley Parham and Eric Klumb are prosecuting the case.#####
Business Man Enters Pleas in Grant Theft CaseRead the Press Release
Contact Person: T. DeWayne Pearson (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated that Brian Morin, age 47 of Greenville, SC, was sentenced in connection with theft of government funds in violation of Title 18, United States Code, Section 641. Morin was convicted in connection with the theft of grant funds administered to Morin’s former company, Innegrity LLC. According to facts presented during the guilty plea hearing, Morin was awarded a research grant from the National Science Foundation. As a grant condition, Morin was responsible for submitting grant reports certifying the hours that the company worked on grant related activities. An investigation revealed that the company’s internal records did not match the hours Morin certified to the National Science Foundation. Morin was sentenced to three years’ probation and a fine of $5,000.
National Science Foundation Inspector General Allison Lerner said, “This individual significantly inflated the amount of time and effort he and other company personnel spent on a Small Business Innovation Research Program award so that he could continue to fraudulently receive National Science Foundation funds intended to conduct innovative research. The strong support of the U.S. Attorney’s office was instrumental in leading to today’s sentencing, which can serve as a deterrent to anyone who seeks to lie to obtain scarce research dollars”. The case was prosecuted by Assistant United States Attorneys T. DeWayne Pearson of the Columbia office and Jamie Lea Schoen of the Greenville office.#####
North Augusta Man Sentenced for Possession of Child PornographyRead the Press Release
Contact Person: Bill Day (803) 929-3000
Columbia, South Carolina---- United States Attorney Bill Nettles stated that James O'Neal Arthur, Jr., age 57, of North Augusta, South Carolina was sentenced in federal court in Columbia, South Carolina, for Possession of Child Pornography, a violation of 18 U.S.C. § 2252S(a)(5)(B). United States District Judge J. Michelle Childs of Columbia sentenced Arthur to 10 years imprisonment, Restitution of $66,000.00 to be paid to the victims, to be followed by Supervised Release for life during which time Arthur will be required to register as a sex offender.
Evidence presented at the change of plea hearing established that an internet audit by Authur’s employer on April 1, 2014 detected inappropriate activity. The audit revealed Arthur had been visiting inappropriate websites so Arthur was sent home while a review was conducted. While at home Arthur contacted co-employees in an effort to get them to hide laptop computers and hard drives he had in his office. A forensic examination of the material found in his office uncovered thousands of images of young females engaged in sexually suggestive/explicit conduct. Further investigation revealed that Arthur had been producing child pornography videos for years from pictures he had taken of pre-teens and teens.
The case was investigated by agents of the U.S. Department of Energy, Office of Inspector General, Office of Investigations. Assistant United States Attorney William E. Day II of the Columbia office prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.#####
Georgia Man Plead to Conspiracy to Manufacture and Pass Counterfeit CurrencyRead the Press Release
Contact Person: Bill Day (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Austin Lee, age 21, of Dallas, Georgia; Morris O. Mega, age 31, of Smyrna, Georgia; and Edward N. Pope, age 24, of Roswell, Georgia each have entered a guilty plea in federal court in Columbia, to conspiracy to manufacture, possess and pass counterfeit currency, a violation of 18 U.S.C. § 371. United States District Judge J. Michelle Childs of Columbia accepted the guilty pleas and will impose sentence after she has reviewed the presentence reports which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Lee, Mega and Pope and another individual manufactured counterfeit $20 Federal Reserve Notes in Dallas, Georgia, in October 2013, then travelled to North Augusta, S.C. Along the way they passed the counterfeit at various restaurants. Once in North Augusta, Lee purchased an I-pad at a Walmart using $500.00 in counterfeit $20's. The defendants then travelled to Lexington, S.C., where Lee was arrested trying to purchase another I-Pad at another Walmart. The investigation revealed that the defendants had passed 107 counterfeit notes in 6 states resulting in losses of more than $6,000.00.
Mr. Nettles stated the maximum penalty for conspiracy to manufacture, possess and pass counterfeit currency is imprisonment for 5 years and/or a fine of $250,000.
The case was investigated by agents of the Lexington Police Department and the United States Secret Service. Assistant United States Attorney William E. Day, II of the Columbia is prosecuting the case.#####
Fort Lawn Man Sentenced for Social Security FraudRead the Press Release
Contact Person: Bill Day (803) 929-3000
Columbia, South Carolina---- United States Attorney Bill Nettles stated that Gerald W. Costner, age 71, of Fort Lawn, South Carolina has been sentenced in federal court in Columbia, South Carolina, for theft of government funds, a violation of 18 U.S.C. § 641. Chief United States District Judge Terry L. Wooten of Columbia sentenced Costner to five months imprisonment and ordered him to pay restitution of $92,925.00.
Evidence presented at the change of plea hearing established that Costner obtained Social Security Administration (SSA) benefits by collecting his roommate’s benefits from June 1992 until January 2014, after his roommate died. Costner failed to notify the SSA of the death and collected $92,925.00 in fraudulent Social Security Benefits.
The case was investigated by agents of the Office of Inspector General, Social Security Administration. Assistant United States Attorney William E. Day II of the Columbia office prosecuted the case.#####
Anderson Woman Pleads Guilty to Fraud Involving Tax Refund ChecksRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Helen Jean Anderson, age 57, of Anderson, South Carolina, pled guilty today in federal court in Greenville, to 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 accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
The evidence at the change of plea hearing established that Anderson and various co-conspirators would obtain the means of identification of other individuals and then file fraudulent tax returns. Once the Treasury checks arrived, the co-conspirators sought ways to negotiate the checks. An eye-witness at 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 $500 per check to cash them. The eye-witness contacted the police.
On August 6, 2013, a confidential informant working with United States Postal Inspectors was wired for audio and video and met with Helen Anderson. 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 2 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.
Mr. Nettles stated the maximum penalty Anderson 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 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.#####