District of South Carolina
Press releases recorded for this federal judicial district.
Notice of SentencingRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles announced today that there will be a sentencing hearing Monday (February 23, 2015) in United States v. Warren Dominique McDaniel. The hearing will be held at 2:30 pm on Monday, February 23, 2015, before United States District Judge Michelle Childs (Courtroom # 2) at the Matthew J. Perry Federal Courthouse in Columbia, South Carolina.
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Columbia Man Pleads Guilty to His Role in Federal Drug ConspiracyRead the Press Release
Contact Person: Stacey Haynes (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated that Raheem Majeed, a/k/a “Mitch,” age 30, of Columbia, South Carolina has entered a guilty plea in federal court. Majeed plead guilty to conspiracy to possess with intent to distribute and to distribute 500 grams or more of cocaine and 28 grams or more of crack cocaine, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(B). Senior United States District Judge Cameron McGowan Currie accepted the plea and will impose a 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 beginning at least in or around June 2006, and continuing to up and including October 2009, Majeed and others conspired to possess with intent to distribute and to distribute cocaine and crack cocaine in the Columbia, South Carolina area. The indictment stemmed from a large investigation by the Federal Bureau of Investigation (FBI) in which over 120 defendants were charged following a series of court-authorized, FBI-monitored wiretaps over dozens of telephones in the Columbia area. The evidence showed that Majeed distributed over 500 grams of cocaine and over 28 grams of crack cocaine while a member of this conspiracy. Majeed was charged, along with a number of co-defendants, in 2011 and remained a fugitive until his arrest in 2014.
Mr. Nettles stated that Majeed, who has a prior felony drug conviction from Louisiana for possession with intent to distribute marijuana, faces a statutory mandatory minimum sentence of ten (10) years imprisonment with a maximum of life, a fine of $8,000,000, and a term of supervised release of at least eight (8) years following the term of imprisonment.
The case was investigated by the FBI Columbia Violent Gang Task Force. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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Rock Hill Gang Member Pleads Guilty to Federal Firearm and Ammunition ChargeRead the Press Release
Contact Person: Stacey Haynes (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that DeMario Ontrey Ware, age 26, of Rock Hill, South Carolina pled guilty today in federal court. Ware pled guilty to being a felon in possession of a firearm and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2), and 924(e). Senior United States District Judge Cameron McGowan Currie accepted the plea and will impose a 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 on the morning of May 22, 2014, officers with the Rock Hill Police Department Violent Crimes Unit were patrolling when they noticed Ware, a known gang member, on the front porch of a residence on Hickory Lane. Officers knew that Ware had an outstanding warrant for his arrest, so they approached him and placed him under arrest for that warrant. Officers located a loaded Bryco .380 caliber handgun in Ware’s front pocket while searching him incident to his arrest. Ware is prohibited under federal law from possessing firearms and/or ammunition based upon his prior federal conviction for armed bank robbery and his prior state convictions for discharging a firearm into a dwelling and criminal conspiracy to commit assault and battery 1st degree.
Mr. Nettles stated that Ware faces a statutory maximum sentence of ten (10) years, a fine of $250,000 and a term of supervised release of up to three (3) years following the term of imprisonment. However, if Ware were found to have three (3) prior violent felony convictions and/or serious drug convictions, he would be deemed an armed career criminal under federal law and face a statutory mandatory minimum of fifteen (15) years imprisonment with a maximum of life, a fine of $250,000 and a term of supervised release of up to five (5) years following the term of imprisonment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Rock Hill Police Department, and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
#####United States Attorney's Office to Sponsor the 12th Annual Project Sentry Logo ContestRead the Press Release
Contact Person: Lance Crick (864) 282-2100
United States Attorney's Office to Sponsor the 12th Annual Project Sentry Logo Contest
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GREENVILLE, South Carolina ---- The United States Attorney's Office is sponsoring its 12th Annual Project Sentry Logo Contest. The statewide contest allows students an opportunity to design logos on school safety, gun violence awareness and prevention, and submit their illustrations for upcoming Project Sentry publications. The contest is open to any student (elementary, middle, or high school age) in South Carolina. Entries will be divided into four grade categories. A winner will be selected from each of the four grade categories and will each receive a $50.00 cash award. The overall winning logo, which will be chosen from among the four grade division category winners, will receive an additional $50.00 cash award (for a total of $100.00), and will be featured in Project Sentry publications. The awards are sponsored by the South Carolina Law Enforcement Officers Association (SCLEOA).
Entries should be consistent with the theme "Preventing Gun Violence at Your School." The deadline for submissions is Friday, April 3, 2015. Contest information has been distributed to schools throughout South Carolina. Therefore, if your child or student is interested in participating, contact your school and/or local law enforcement agency as contest information has been provided to them as well. Additionally, if your child?s school is not participating in the contest, your child may still submit an entry. Application and contest rules may be found on our website at: http://www.justice.gov/usao-sc/programs/ceasefire/project-sentry/contest-winners
Project Sentry, which is part of the district?s Project Safe Neighborhoods/Project Cease Fire 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.Columbia Man Sentenced for Conspiracy to Distribute OxycodoneRead the Press Release
Contact Person: Bill Day (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated that John Lanier Britt, age 52, of Columbia, South Carolina was sentenced Tuesday to one hundred months imprisonment to be followed by six years Supervised Release for conspiracy to distribute oxycodone, a violation of 21 U.S.C. § 846, by Chief United States District Judge Terry L. Wooten.
Evidence presented at the change of plea hearing established that Britt was involved in the illegal distribution of oxycodone, a powerful prescription pain medication, for more than three years. Audio and video recordings of Britt selling oxycodone were made during the investigation. A search of Britt's house was conducted when Britt was arrested resulting in drugs being seized and evidence being found that Britt had sold almost 300 pills in the three days before he was arrested.
The case was investigated by agents of the Drug Enforcement Administration, Diversion and the Richland County Sherriff’s office. Assistant United States Attorney William E. Day, II of the Columbia office prosecuted the case. #####California Man Sentenced to 180 Months in Prison and 25 Years Supervised Release for Traveling to South Carolina to have Sex with 15 Year-OldRead the Press Release
Contact: Jim May (803) 929-3000
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Columbia, South Carolina ---- United States Attorney Bill Nettles stated that on Tuesday Charles Henry Ross, age 29, of San Diego, California was sentenced to 180 months and 25 years of supervised release for a violation of 18 U.S.C. § 2423(b), traveling in interstate commerce with the intent to have illicit sexual contact with a minor. United States District Judge Terry L. Wooten of Columbia imposed the sentenced.
Evidence presented at the change of plea hearing established that the defendant, Charles Henry Ross, traveled from California to South Carolina for the purpose of having a sexual relationship with a 15 year old in Lexington County. Ross had been communicating with the 15 year old for several months before he purchased a ticket and flew to South Carolina. The 15 year-old boy’s parents found Ross at their home, then notified Lexington County Sheriff’s Department. In imposing the sentence Judge Wooten agreed with the Government and the defense that the crime was very serious and warranted an upward departure of 3 levels of the sentencing guideline, arriving at the agreed upon 180 month sentence.
Mr. Nettles stated the case showed the cooperation between the United States Attorney’s Office, Lexington County Sheriff’s Department, the FBI and the South Carolina Attorney General’s Office in the identification and prosecution of sexual predators.
The United States Attorney’s Office prosecuted the case in conjunction with the South Carolina Attorney General’s Office. The case was investigated by agents of the FBI and the Lexington County Sheriff's Department. Assistant United States Attorney James (Jim) Hunter May of the Columbia prosecuted the case.
Woman Sentenced to Twenty-One Months Imprisonment for International Parental Kidnapping and Passport FraudRead the Press Release
Contact Person: Nathan Williams (843) 727-4381
Columbia, South Carolina ----United States Attorney Bill Nettles stated today that Dorothy Lee Barnett, a/k/a Alexandria Maria Canton, a/k/a Alexandria Maria Geldenhuys, age 53, of Queensland, Australia, formerly of Isle of Palms, South Carolina, pled guilty to one count of International Parental Kidnapping and two counts of False Statement in a Passport Application. Sentencing occurred immediately after the guilty plea, where Barnett was sentenced to twenty-one months imprisonment, to be followed by two years supervised release.
Facts at the plea hearing established that Barnett removed her infant child from the United States in 1994, obstructing the parental rights of the child’s father. Prior to fleeing the United States, Barnett assumed a false identity, which she maintained until the time of her arrest. Barnett was able to obtain a false passport, using the false identity, which she utilized to flee the United States. The false statements she made in order to obtain and renew the passport were the basis for her two passport fraud convictions. Barnett was located by FBI agents in early 2012, and extradited to the United States in September, 2014.
Barnett’s plea was heard, and sentence was imposed, by United States District Court Judge Richard M. Gergel. The International Parental Kidnapping count carried up to three years imprisonment under 18 U.S.C. § 1204 and each of the False Statement charges carried up to ten years imprisonment under 18 U.S.C. § 1542.
The convictions are the result of an investigation conducted by the Federal Bureau of Investigation, United States Department of State and the Australian Federal Police. Assistant United States Attorney Nathan Williams of the Charleston office prosecuted the case. The Department of Justice’s Office of International Affairs provided significant assistance.Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Beth Drake (803)929-3000
Greenville, South Carolina ----United States Attorney Bill Nettles stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictment(s) against the following:
Foreign Nationals Charged with Illegal Re-entry
Evaristo Sanchez-Lozano, Margarito Pascual-Magana, and Abner Diaz-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 two 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.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:
Charleston Man Indicted for Investment Fraud
Robert C. Jordan, age 64, of Charleston, South Carolina, was charged in a 6-count Indictment for Wire Fraud and Making a False Statement on a Loan Application, a violation of 18 U.S.C. §§ 1343 and 1014. The maximum penalty that Jordan could receive is 30 years imprisonment and a maximum fine of $1 million. 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.
St. Stephen Man Indicted for Theft of Government
Jerome Ravenell, age 58, of St. Stephen, South Carolina was charged in a 1-count Indictment for Theft of Government Property, a violation of 18 U. S. C. § 641. The maximum penalty that Ravenell could receive is 10 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the Social Security Administration and is assigned to Assistant United States Attorney Rhett DeHart of the Charleston office for prosecution.
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.Federal Correctional Officer Sentenced on Bribery ChargesRead the Press Release
Contact Person: A. Bradley Parham (843) 727-4381
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Charlotte McLaughlin was sentenced in federal court in Florence, South Carolina, for Bribery, a violation of 18 U.S.C. § 201(b)(2)(C). United States District Judge R. Bryan Harwell of Florence sentenced McLaughlin to 13 months imprisonment and 3 years supervised release.
Evidence presented at the guilty plea hearing established that in 2012 and 2013, McLaughlin, who was a Federal Correctional Officer at the time, accepted bribes from inmates and their associates in exchange for which she brought contraband, tobacco and cellphones, to inmates at the Federal Correctional Institution in Bennettsville.
The case was investigated by agents of the Department of Justice, Office of Inspector General. Assistant United States Attorney A. Bradley Parham of the Florence office prosecuted the case.Notice of HearingRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Charleston, South Carolina ---- A plea and sentencing hearing has been scheduled in connection with United States v. Dorothy Barnett, a case involving International Parental Kidnapping and False Statements in a Passport Application. United States District Court Judge Richard M. Gergel will preside over the proceedings as indicated below.Fourth Circuit Court of Appeals Affirms Michael Juan Smith's Federal ConvictionRead the Press Release
Contact Person: Stacey Haynes (803) 929-3000
Columbia, South Carolina ---- The United States Attorney’s Office stated today that the Fourth Circuit Court of Appeals issued an unpublished opinion today affirming the federal conviction of Michael Juan Smith, age 22, of Columbia, South Carolina. The written opinion may be found at http://www.ca4.uscourts.gov/opinions/daily-opinions. Smith was sentenced to the maximum sentence of 120 months (10 years) imprisonment for the federal charge of being a felon in possession of a firearm and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). Smith pled guilty on February 19, 2014. United States District Judge Joseph F. Anderson, Jr. imposed the maximum sentence on June 20, 2014, which will be followed by three (3) years of federal supervised release.Summerville Man Sentenced to 12 Years in Federal PrisonRead the Press Release
Contact Person: Nick Bianchi (843) 727-4381
Columbia, South Carolina ---- United States Attorney Bill Nettles stated that Hadden Andre Smith was sentenced today in federal court in Charleston, South Carolina, for conspiracy to possess with intent to distribute cocaine and marijuana, a violation of 21 U.S.C. § 841; possession of firearms in furtherance of a drug trafficking crime, a violation of 18 U.S.C. § 924(c); and conspiracy to launder money, a violation of 18 U.S.C. § 1956. United States District Judge David C. Norton of Charleston sentenced Smith to 12 years imprisonment to be followed by 4 year supervised release. Smith also agreed to forfeit over $248,000 that authorities seized from his residence.
Evidence presented at the change of plea hearing established that on July 31, 2012, upon executing a search warrant at Smith's residence, Berkeley County Sheriff's Office Deputies found approximately $248,000 cash, 1.8 kilograms of marijuana, two firearms and drug packaging paraphernalia. Further investigation by the Internal Revenue Service Criminal Investigations Division revealed that Smith used drug proceeds to purchase several vehicles, while having the vehicle titles put in the name of third parties.
IRS-CI Special Agent In Charge Thomas J. Holloman stated, “The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs. Without these ill-gotten gains, the traffickers could not finance their organizations. IRS Criminal Investigation is committed to taking the profit away from the drug traffickers and putting those individuals in jail.”
The case was investigated by agents of the Internal Revenue Service Criminal Investigations Division, Drug Enforcement Administration and Berkeley County Sheriff's Office. Assistant United States Attorney Nick Bianchi of the Charleston office prosecuted the case.Project Manager Pleads Guilty to Lying to Inspectors Regarding Asbestos Removal from Former Federal BuildingRead the Press Release
Contact Person: Winston David Holiday, Jr (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Albert Dickson, age 61, of Red Bank, New Jersey, has entered a guilty plea in federal court in Charleston, to Making a False Statement Under the Clean Water Act, a violation of 33 U.S.C. § 1319(c)(4). United States District Judge Patrick Michael Duffy of Charleston accepted the guilty plea and will sentence Dickson at a later date.
Evidence presented at the change of plea hearing established that Albert Dickson was the project manager overseeing renovations of the L. Mendel River Federal Building in Charleston in the spring and early summer of 2011. SC DHEC inspectors visited the site in June and noticed asbestos violations, including sweeping asbestos-containing materials down open drains. When questioned, Dickson indicated that a filtration system had been in place at the time of the inspections. Evidence indicated that it had not been installed until after June 6, 2011, when the violations were observed.
Mr. Nettles stated the maximum penalty for Making a False Statement Under the Clean Water Act is imprisonment for 2 years and/or a fine of $10,000.
United States Attorney Bill Nettles stated, “I am particularly pleased that we held accountable an individual who valued this particular project above the health and safety of the citizens of Charleston. We hope this guilty plea serves as a reminder that, where environmental violations are found, they will be punished.”
The case was investigated by agents of the United States Environmental Protection Agency and the South Carolina Department of Health and Environmental Control. Assistant United States Attorney Winston David Holliday, Jr. of the Columbia office is prosecuting the case.
#####Man Convicted at Trial for Bank RobberyRead the Press Release
Contact Person: Nathan Williams (843) 727-4381
Charleston, South Carolina ---- United States Attorney William N. Nettles stated today that Leonard Riley III, age 32, of Charleston was convicted following a three day jury trial in federal court for his role in a bank robbery. Evidence presented during the trial established that Riley, along with a co-defendant, conspired to commit, and committed, a series of armed robberies that included a liquor store and three banks, in both the Charleston and Georgetown area, in late 2013 and early 2014. The last of the robberies occurred at the Citizen’s Bank in Georgetown, SC, on March 3, 2014. Using surveillance video from the bank, and information gathered from previous robberies, Georgetown Police Department Detectives were able to apprehend both defendants within hours of the Citizen’s bank robbery. At the time of arrest Detectives recovered money stolen from the robbery, some of the clothes worn during the robbery, and the guns used during the robbery, from the car defendants were driving. Riley’s co-defendant Ryan Bonneau, age 47, of Charleston, pled guilty prior to trial, and explained to the jury that, prior to the Citizen’s bank, he and Riley had robbed banks in both Charleston and Georgetown, as well as a liquor store in North Charleston, SC.
Riley was convicted of Conspiring to Commit Armed Bank Robbery (18 U.S.C. §371), Armed Bank Robbery (18 U.S.C. §2113) and Possession of a Firearm in Furtherance of a Crime of Violence (18 U.S.C. §924(c)). The Bank Robbery charge carries up to twenty five years imprisonment, the Conspiracy up to five years, and the Firearm charge carries a mandatory minimum five year consecutive sentence. United States District Court Judge David C. Norton oversaw the trial, and will impose sentence for both defendants at a later date.
The convictions were the result of an investigation conducted by the Georgetown Police Department, Federal Bureau of Investigation and Charleston Police Department. Assistant United States Attorneys Nathan Williams and Emmanuel Ferguson of the Charleston office prosecuted the case.Notice of HearingRead the Press Release
September 29, 2014Contact Person: Beth Drake (803) 929-3000
Charleston, South Carolina ---- An Initial Appearance has been scheduled in connection with United States v. Dorothy Barnett, a case involving International Parental Kidnapping and False Statements in a Passport Application. United States Magistrate Judge Bristow Marchant will preside over the proceedings as indicated below.
September 29, 2014, 1:30 p.m. 83 Meeting St. Charleston, SC 29401 Courtroom TBDGreenville Man Sentenced to 72 Months in Oxycodone ConspiracyRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Gregory D. Megilligan, age 50, of Greenville, was sentenced today in federal court in Greenville, for conspiracy to distribute oxycodone, a violation of Title 21, United States Code, Section 846. Senior United States District Judge Henry M. Herlong, Jr., of Greenville sentenced Megilligan to 72 months imprisonment.
Evidence presented at the change of plea hearing established that Megilligan was in league with Lance Tew, Jessica Hollingsworth, and Ginger Merritt. These three co-conspirator have already been sentenced (Tew was sentenced to 100 months, Hollingsworth to 48 months, and Merritt to 60 months). The four involved in the prescription ring created fraudulent scripts for oxycodone and recruited individuals to pass the prescriptions at various pharmacies in the upstate of South Carolina and in western North Carolina.
The criminal activity was discovered when, on January 15, 2013, Jessica Hollingsworth was arrested in a CVS pharmacy in York County for attempting to pass a fraudulent prescription for oxycodone. Lance Tew was the person who drove her to the pharmacy in a rental car. Both Tew and Hollingsworth were arrested. The car war towed and an inventory search conducted. Police found cash, pills, fake ids, blank prescriptions, and fraudulent prescriptions. Further investigation revealed that the conspirators were passing at least one fraudulent prescription per day. The conspirators recruited many individuals to pass the prescriptions and generally paid the prescription passers 30 pills for their efforts. Merritt, having good computer skills, was the primary manufacturer of the fraudulent prescriptions. Megillian assisted with recruitment and the passing of various prescriptions.
The case was investigated by agents of the federal Drug Enforcement Administration. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.Anderson Woman Gets Prison for Extensive Bank Fraud Scam and Environmental CrimeRead the Press Release
Contact Person: Will Lucius (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that NANCY MARIE STEIN, age 62, of Anderson, South Carolina , was sentenced by Senior United States District Judge Henry M. Herlong today in federal court in Greenville, to a total of 73 months in prison for six counts of violating Title 18, United States Code, Section 1344, commonly referred to as bank fraud; and 60 months for one count of violating Title 42, United States Code, Section 6928(d)(2)(A), for storing hazardous wastes without a permit. The sentences were ordered to run concurrently for a total sentence of 73 months. STEIN was also ordered to pay restitution in the amount of $17, 692, 974.00. STEIN’s Company, AMERICAN SREW AND RIVER CORPORATION (ASR) of Anderson, was placed on probation for 5 years and ordered also to pay restitution for its involvement in the bank fraud and storing hazardous wastes without a permit.
Both STEIN and ASR entered pleas of guilty to the charges on December 16, 2013. The case had originally been set for sentencing on July 15, 2014, but was continued due to issues raised by STEIN.
During the guilty plea hearing in December of 2013, the factual presentation revealed that had the cases had gone to trial, the Government would have presented evidence indicating that from at least 2004 and continuing until in 2011, while operating ASR, STEIN developed a scheme to defraud a number of financial institutions. As part of the ruse, STEIN created a number of fictitious manufacturing companies, organizations and business associations with apparent legitimate addresses, bank accounts and telephone numbers in various locations throughout the Southeast and the Midwest including Alabama, Georgia, Indiana, Ohio, and Pennsylvania. The addresses were mail drops, STEIN controlled the accounts, and the telephone numbers were answering services. One of the fictitious entities was an accounting firm which issued audits and financial statements attesting to the fiscal soundness of ASR.
STEIN would then apply to various financial institutions for loans for ASR. Often she would present to the institutions false invoices indicating that ASR had purchased types of specialized machinery from the fictitious vendors which could be used as collateral for loans. Often, STEIN would have the financial institutions forward the loan proceeds to the non-existent vendors’ accounts. The deception also involved removing legitimate identity plates on existing machinery at the ASR location and replacing them with false plates reflecting the serial numbers of the fictitious machines.
After a number of years of running the scheme, STEIN’s and ASR’s debts continued to grow, and ultimately, ASR’s creditors forced the company into involuntary bankruptcy in 2011. Thereafter, the United States Secret Service was asked to investigate. At least twenty six victim financial institutions were identified with cumulative losses in excess of $16 million. When the investigation focused on STEIN, in a statement to the Secret Service, she admitted what she had done and took full responsibility for the fraud.
Resident Agent in Charge of the Greenville, S.C. Office of the United States Secret Service, Thomas M. Griffin, stated: “Today's sentencing was the result of a criminal investigation which was initiated in 2010. The Secret Service utilized significant resources conducting interviews, reviewing bank records and other documents associated with the fraudulent loans obtained by these defendants. These investigative efforts have ensured that the defendants would be successfully brought to justice for the crimes which they committed.”
With respect to the environmental crime violation, the Government was prepared to show that some years prior to the involuntary bankruptcy, STEIN and ASR had been informed that they needed a permit from the South Carolina Department of Health and Environmental Control (DHEC) or from the United States Environmental Protection Agency (EPA) to store the large quantities of hazardous wastes generated by ASR’s manufacturing process. No permit to store hazardous waste was ever sought by STEIN or ASR or issued by EPA or DHEC.
In June, 2011, as a result of a DHEC search of ASR’s property, a large quantity of hazardous waste was discovered on site. Thereafter, more than 24,000 gallons of waste were removed from the sight and disposed of by EPA at a cost of approximately $1,720,000.00.
“For a number of years, the defendants stockpiled thousands of gallons of unpermitted hazardous waste at ASR’s location in Anderson,” said Maureen O’Mara, Special Agent in Charge of EPA’s criminal enforcement program in South Carolina. “This waste consisted of uncontained flammable and highly corrosive materials which were exposed to the elements. Today’s sentencing shows that those who refuse to comply with the law, putting public health and the environment at risk, will face the consequences in court.”
The cases were investigated by agents of the United States Secret Service, the Criminal Investigative Division of the United States Environmental Protection Agency, and prosecuted by Assistant United States Attorney William C. Lucius of Greenville.
#####Georgia Men Sentenced for Recruiting Local Homeless Men in Check Cashing RingRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Shrerod Terry, age 37, and Akram H. Muhammad, age 37, both of Atlanta, Georgia, were sentenced today in federal court in Greenville, for conspiracy to negotiate counterfeit checks, a violation of Title 18, United States Code, Section 371. Senior United States District Judge Henry M. Herlong of Greenville imposed a 15-month sentence for Terry and a 24-month sentence for Muhammad. He ordered the men to pay over $23,000 in restitution.
Evidence from the change of plea hearing established that Terry and Muhammad traveled from Atlanta, Georgia, to Greenville. The men went to “Tent City,” a known location in Greenville for homeless people. Terry and Muhammad proceeded to recruit homeless people to cash counterfeit checks for them. Terry and Muhammad would provide the homeless recruits with clean clothes, a place to wash up, and then would take them to various banks to negotiate the counterfeit checks. The activities of the duo were first discovered by deputies with the Greenville County Sheriff’s Office when conducting a traffic stop. A K-9 alerted on the vehicle and a small quantity of marijuana was discovered during a search. While looking for additional drugs, deputies discovered counterfeit checks and called Inspectors from the U.S. Postal Inspection Service for assistance. Law enforcement estimates that Terry and Muhammad used homeless people to cash $23,159.56 in counterfeit checks before they were apprehended.
The case was investigated by deputies of the Greenville County Sheriff’s Office and agents of the United States Postal Inspection Service. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.Estill Man Sentenced to Prison for Identity Theft Tax FraudRead the Press Release
Contact Person: Rhett DeHart (843) 727-4381
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Angel Masdeu, age 52, of Estill, SC was sentenced in federal court in Charleston, South Carolina, for aggravated identify theft, a violation of Title 18, United States Code, Section 1028A. United States District Judge Richard M. Gergel of Charleston sentenced Masdeu to 24 months imprisonment and one year of supervised release.
Evidence presented in this case established that Masdeu stole the identifying information of individuals, and using this stolen identifying information, he filed fraudulent tax returns that claimed false tax refunds. After a thorough investigation, the IRS determined that Masdeu’s identify theft caused more than $260,000 in loss to the United States Treasury due to fraudulent tax refunds.
“Investigating refund fraud and identity theft is a top priority of IRS Criminal Investigation,” said IRS-CI Special Agent in Charge Thomas J. Holloman III. “Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers. Today’s sentencing should serve as a strong warning to those considering similar conduct. Law enforcement and the US Attorney’s Office will vigorously pursue these crimes and will hold those accountable who would defraud the government.”
The case was investigated by agents of the IRS-Criminal Investigative Division. Assistant United States Attorney Rhett DeHart of the Charleston office prosecuted the case.Former Executive Director of Adoption Agency Pleads Guilty to Submitting False Information to Accreditation AgencyRead the Press Release
Contact Person: Bill Nettles (803) 929-3000
WASHINGTON ---- The former Executive Director of International Adoption Guides Inc. (IAG), an adoption agency, pleaded guilty yesterday to making false and fraudulent statements to the Council on Accreditation with respect to IAG’s accreditation.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Bill Nettles of the District of South Carolina made the announcement.
Mary Mooney, 57, of Belmont, North Carolina, admitted as part of her guilty plea that she made false statements to the Council on Accreditation (COA), which granted IAG accreditation to provide adoption services in certain countries. IAG marketed itself as a COA-accredited adoption services provider and numerous clients relied on IAG’s accreditation to confirm that IAG’s adoption services were ethical and in compliance with U.S. and foreign law. Mooney admitted that in support of IAG’s application for accreditation she made several false representations, including: falsely stating that IAG was in substantial compliance with the relevant regulations; intentionally failing to list her co-defendant, Alisa Bivens, as one of IAG’s employees providing adoption services; and intentionally failing to disclose that James Harding, another co-defendant, was the functional director and head of the company. All of these false and fraudulent statements were material to COA’s decision to accredit IAG to conduct intercountry adoptions for purposes of the Hague Convention on the Protection of Children and Cooperation in Respect of Intercountry Adoptions. Without that accreditation, IAG would not have been legally permitted to facilitate intercountry adoptions from any country that was a party to that convention and numerous families would have never retained IAG to provide adoption services.
Mooney is the third defendant to plead guilty as a result of this investigation. Mooney pleaded guilty before Senior U.S. District Court Judge Sol Blatt Jr. of the District of South Carolina. A sentencing hearing will be scheduled at a later date.
This ongoing investigation is being conducted by the Bureau of Diplomatic Security. The department appreciates the assistance of the Office of Children’s Issues at the U.S. Department of State. The case is being prosecuted by Trial Attorney John W. Borchert of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jamie Lea Schoen of the District of South Carolina.# # #
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Charleston Doctors and Medical Clinic Settle Allegations of FraudRead the Press Release
Contact Person: Bill Nettles (803) 929-3000
Dr. Baron S. Nason, Robert T. Hamilton and Nason Medical
Settle Allegations of Fraud for $1,021,778.26
1 Submitted claims to Medicare and TRICARE for services that were provided by physician assistants, as though the services were provided by physicians. Both Medicare and TRICARE pay 85% of the physician fee schedules for services provided by mid-level providers like physician assistants; 2 Submitted claims to Medicare, Medicaid and TRICARE for testing that was not medically indicated including laboratory tests and potentially harmful CT scans; 3 Submitted claims for radiological services provided by a radiology technician who did not hold a current South Carolina license; and 4 Submitted claims for Tetanus Immunoglobulin when Tetanus Toxoid was given which is considerably less expensive;
Columbia, South Carolina ---- United States Attorney Bill Nettles announced today that the United States Attorney's Office for the District of South Carolina, settled claims of health care fraud with Nason Medical, out of Charleston, South Carolina, and two of its owners, Dr. Baron S. Nason and Robert T. Hamilton. The United States contended that Nason Medical submitted numerous false claims to Medicare, Medicaid and TRICARE. Specifically, the United States contended that Nason Medical:
The investigation began with the filing of whistleblower lawsuits, called qui tams, under the False Claims Act. The suits were filed by former employees of Nason Medical. The False Claims Act allows the government to recover actual damages and penalties of three times the actual damages and up to $11,000 per false claim. This settlement includes repayment of actual damages and penalties.
The False Claims Act allows individuals to file lawsuits with allegations that fraud has been committed against the federal government on behalf of the government. Whistleblowers, referred to as Relators in the False Claims Act, are entitled to share in any recovery received by the government. In this case, the two relators collectively will receive 18% of the funds of the settlement, or $183,920.08, plus they are entitled to their costs and attorney fees. One whistleblower claimed he was terminated for his actions taken to stop the fraudulent billing. If that is true, he is entitled to recover for his personal damages as well.
Mr. Nettles said, ?Health care fraud is a very high priority in this office. We have shifted our office resources by trebling the number of attorneys dedicated to address civil fraud cases. This case is particularly egregious because it involves allegations of profiting by exposing patients to unnecessary radiation in the CT scans.?
“Being a health care provider in Federal health care programs such as Medicare and Medicaid is a privilege, not a right. When health care providers order medically unnecessary procedures such as CT scans and submit other improper claims just to boost profits, they threaten both the health of their patients and the financial integrity of the Medicare and Medicaid programs,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General (OIG). “In an effort to ensure Nason Medical’s egregious billing history is not its future, the company agreed to a rigorous 5-year Corporate Integrity Agreement (CIA) we crafted to hold them accountable.”
Under this CIA, except for X-rays, Nason Medical also agreed to remove all its imaging equipment (including CT scans) and to provide medical services only appropriate for an Urgent Care Center. To that end, Nason Medical may not present or advertise itself out as providing any medical services for emergencies. Nason Medical is required to take down its Emergency signage and to stop advertising for emergency services. And, to ensure its compliance with federal healthcare programs and this CIA, Nason Medical, among other requirements, must engage the services of an independent monitor, chosen by OIG.
This case was investigated by agents from U.S. Health and Human Resources Office of Inspector General, Defense Criminal Investigative Service and the Federal Bureau Investigation.
If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at [email protected].Federal Grand Jury IndcitmentsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictment(s) against the following:
Anderson County Resident Indicted for Possession of Child Pornograph
David D. Survilas, age 46, of Walhalla, South Carolina, was charged in a 1-count Indictment with possession of child pornography. The maximum penalty Survilas could receive is not more than twenty (20) years imprisonment and a fine of $250,000.00. This 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.
Foreign Nationals Charged with Illegal Re-entry
Jorge Hernandez-Morales, Nestor Perez-Antonio, Gerson David Ordonez-Irias, Ramon Alvarez-Ornelas, and Francisco Martinez-Sebastian were each charged in Indictments with illegal re-entry to the United States, a violation of Title 8, United States Code, Section 1326. The maximum penalty each could receive, depending on their prior criminal history, is two to twenty years imprisonment. These cases were investigated by U.S. Immigration and Customs Enforcement (ICE) agents and are assigned to Assistant United States Attorney Max Cauthen of the Greenville office for prosecution.
Individual Indicted for Failure to Register as a Sex Offender
Paul Edward Philson, Jr., was charged in a 1-count Indictment with failure to register as a sex offender, a violation of Title 18, United States Code, Section 2250. The maximum penalty Philson could receive is ten years imprisonment. The case was investigated by agents of the United States Marshals Service and is 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.Former International Program Director of Adoption Agency Pleads Guilty to Ethiopian Adoption Fraud SchemeRead the Press Release
Contact: (202) 514-2007
Washington ---- The former International Program Director of International Adoption Guides Inc. (IAG), an adoption agency, pleaded guilty today to conspiring with others to defraud the United States by submitting fraudulent documents to the State Department for adoptions from Ethiopia and paying bribes to foreign officials.
# # #
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Bill Nettles of the District of South Carolina made the announcement.
James Harding, 55, of Atlanta, Georgia, admitted as part of his guilty plea that, between 2008 and 2009, he and his co-conspirators submitted fraudulent documents to the State Department to facilitate adoptions of Ethiopian children by U.S. parents. Harding admitted that, in support of U.S. visa applications for the Ethiopian children, he and others submitted false documentation, including contracts of adoption signed by orphanages that could not properly give the children up for adoption because, for example, the child in question was never cared for or never resided at the orphanage.
In entering his guilty plea, Harding also admitted that he and others paid bribes to two Ethiopian officials so that those officials would help with the fraudulent adoptions. Specifically, Harding admitted that an audiologist and teacher at a government school was given money and other valuables in exchange for non-public medical information and social history information for potential adoptees. Additionally, Harding and his co-conspirators provided cash and all-expense paid travel to the head of a regional ministry for women’s and children’s affairs in exchange for his approval of IAG’s applications for intercountry adoptions and ignoring IAG’s failure to maintain a properly licensed adoption facility.
Harding pleaded guilty before Senior U.S. District Court Judge Sol Blatt Jr. of the District of South Carolina, and a sentencing hearing will be scheduled at a later date.
This ongoing investigation is being conducted by the Bureau of Diplomatic Security. The department appreciates the assistance of the Office of Children’s Issues at the U.S. Department of State. The case is being prosecuted by Trial Attorney John W. Borchert of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jamie Lea Schoen of the District of South Carolina.
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DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007Federal 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 Columbia, South Carolina, returned Indictment(s) against the following:
Florence Woman Indicted for Bank Fraud
Tamara Leigh Taylor, of Florence, South Carolina was charged with Bank Fraud in a 1-count indictment. The maximum penalty Taylor could receive is 30 years. The case was investigated by agents of the Secret Service and is assigned to Assistant United States Attorney William E. Day, II of the Columbia 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.Notice of Court Proceedings Guilty Plea Hearing Scheduled for Former Lexington County Sheriff James R. MettsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Charleston, South Carolina ---- United States Attorney Bill Nettles stated today that Chief United States District Judge Terry L. Wooten will hold a change of plea hearing in the case of United States v. James R. Metts, Case No. 3:14-cr-429.
WHEN Tuesday, December 30, 2014,
at 10:00 a.m WHERE Matthew J. Perry, Jr., Courthouse
901 Richland Street, Courtroom V
Columbia, SC 29201Wilson Cooperators Receive Home Confinement, Probation, and Community ServiceRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ----United States Attorney Bill Nettles stated today that Cassandra Kendall Wilson, age 66, of Woodruff, South Carolina, and Timothy L. Wilson, age 60, of Martin, Tennessee, were sentenced today in federal court in Greenville for their involvement in a conspiracy to obstruct justice, a violation of Title 18, United States Code, Section 371. United States District Judge J. Michelle Childs of Greenville imposed a period of 9 months of home confinement, 1 year of probation, a community service requirement (200 hours for Timothy and 225 hours for Cassandra), and a curfew on both defendants. In passing sentence, Judge Childs granted a motion from the Government to depart downward because of substantial assistance in the prosecution and investigation of Ronnie Gene Wilson.
Evidence presented at the change of plea hearing established that in late 2011 and early 2012, agents with Secret Service and state law enforcement officers began to investigate Atlantic Bullion and Coin and Ronnie Gene Wilson. It was discovered that Wilson operated what is generally described as a “Ponzi scheme.” In April 2012, Wilson confessed to operating the Ponzi.
On April 27, 2012, the United States District Court—with the consent of Wilson and the Government—appointed a Federal Receiver. The Court’s Order directed the Receiver to take immediate possession of all property, assets and estates owned, controlled, used, or in the possession of Wilson.
During the course of the investigation, the Secret Service talked with Wilson on multiple occasions. On or about September 20, 2012, agents interviewed Wilson about possible hidden assets and cash. Wilson was adamant that there were no hidden assets or cash. He stated that he had turned everything over to the Government.
On November 13, 2012 the District Court ordered Wilson to pay approximately $57 million in restitution to the 798 victims of the Ponzi Scheme. He was sentenced to 235 months in prison.
In April 2014, the Government recovered approximately $164,300. This money had been hidden in an ammunition can. Ron Wilson gave this money to Timothy L. Wilson member to keep for Ron Wilson so he would have something if he was ever released from the Bureau of Prisons.
The evening before Ron Wilson was sentenced in November 2012, evidence established that Ron Wilson visited the hotel room of Timothy L. Wilson in Greenville and gave him $7000 in cash in an envelope.
In March 2014, Secret Service and the Receiver recovered another ammunition can of money ($172,859). Ron Wilson had given this canister to Cassandra K. Wilson prior to his sentencing hearing.
The case was investigated by agents of the United States Secret Service. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.Retired Myrtle Beach Fireman Sentenced as a Sex OffenderRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ----United States Attorney Bill Nettles stated that Webster Douglas Williams, III, age 56, of Myrtle Beach, South Carolina was sentenced in federal court in Florence, South Carolina, for Sexual Exploitation of a Minor, a violation of 18 U.S.C. § 2251(a) and (e), Travel With Intent to Engage in Illicit Sexual Conduct, a violation of 18 U.S.C. § 2423(b), and Possession of Child Pornography, a violation of 18 U.S.C. § 2252A(a)(5)(B). United States District Judge R. Bryan Harwell of Florence sentenced Williams to 327 months imprisonment to be followed by Supervised Release for life during which Williams is required to register as a Sex Offender, attend Sexual Offender Treatment and submit to polygraph examinations. Williams was also ordered to pay restitution of $487,350.00 to his victims.
Evidence presented at the change of plea hearing established that Williams was employed by the Myrtle Beach Fire Department before he retired. Williams produced child pornography for six years by filming his activities with the children he was molesting. He also took children to Florida in 2009 and engaged in sexual activities with one of the children. When Williams’ house was searched by the Horry County Police Department in November 2011 more than 1 million images of child pornography were found in the form of pictures and videos on computers and elsewhere. Hidden cameras, computers, and other material used by Williams in producing and collecting the child pornography were also found and seized.
The case was investigated by agents of the Horry County Police Department and the Federal Bureau of Investigation. 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.Heroin and Methamphetamine Trafficking Enterprise Operating in Lowcountry and Upstate South Carolina Charged in Charleston, SCRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Charleston, South Carolina ---- Bill Nettles, the United States Attorney for the District of South Carolina; John S. Comer, the acting Special Agent in Charge of the Atlanta Division of the Drug Enforcement Administration (“DEA”); Mark Keel, the Chief of the South Carolina Law Enforcement Division (“SLED”); and Gregory Mullen, the Chief of Police for the City of Charleston, SC announce the indictment and arrests of defendants in a drug trafficking enterprise. As specified in unsealed indictments, the defendants allegedly conspired to distribute more than 100 grams heroin and more than 500 grams of methamphetamine in South Carolina and elsewhere.
The listed defendants were arrested, arraigned or are in custody based on the indictment:
Over 6,000 grams of methamphetamine and over 350 grams of heroin were seized in the investigation. Approximately $25,000 in alleged drug proceeds were also seized. The indictment resulted from an Organized Crime Drug Enforcement Task Force investigation involving DEA Charleston Task Force, DEA Greenville Resident Office, SLED, Charleston Police Department, South Carolina Highway Patrol, Spartanburg County Sheriff’s Office, and Anderson County Sheriff’s Office.
"These arrests are the result of extensive coordination and investigation between federal, state and local law enforcement officials. Through their hard work, we have been able to remove significant quantities of drugs from the streets and apprehend a number of individuals involved in bringing those drugs into our district,” said United States Attorney Bill Nettles. The mission of DEA is unwavering--we combat drug traffickers by investigating and prosecuting those who distribute illicit drugs which causes immeasurable damage to our communities. Today's enforcement activity is a perfect example of how the law enforcement community works together to remove such criminals from the streets,” said Acting Special Agent in Charge John S. Comer of the DEA Atlanta Field Division.
The DEA Charleston Task Force is comprised of Special Agents and Task Force Officers from DEA, Berkeley County Sheriff’s Office, Charleston County Sheriff’s Office, Charleston Police Department, Dorchester County Sheriff’s Office, Hampton County Sheriff’s Office, North Charleston Police Department, Mount Pleasant Police Department, South Carolina Highway Patrol, South Carolina Law Enforcement Division, and Summerville Police Department.
Prosecution of the investigation is led by Assistant United States Attorney Nick Bianchi of the United States Attorney’s Office in Charleston, SC.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.Notice of Court Proceedings Status Hearing Scheduled for Former Lexington County Sheriff James R. MettsRead the Press Release
December 16, 2014Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ----United States Attorney Bill Nettles stated today that Chief United States District Judge Terry L. Wooten will hold a status hearing in the case of United Sates v. James R. Metts, Case No. 3:14-cr-429.
WHEN: WHERE:Matthew J. Perry, Jr., Courthouse
Courtroom V
901 Richland Street
Columbia, SC 29201Three Enter Guilty Pleas in Shaw Air Force Base SchemeRead the Press Release
Contact Person: DeWayne Pearson (803) 929-3000
Columbia, South Carolina ----United States Attorney Bill Nettles stated today that James Autry “Audi” Clemens, age 60 of Johnston, SC, Larry Baker, age 64 of Cameron, SC and Steven Crandall, age 59 of Salisbury, NC were sentenced for their connection to a scheme to defraud Shaw Air Force Base through various construction contracts. Clemens was also sentenced for an additional count of money laundering. According to facts presented during the guilty plea hearing, the men inflated costs of construction projects by submitting invoices that falsely claimed that additional workers and resources were used to complete construction jobs on the base. The men would then split the fraudulent payments between themselves. Clemens received a sentence of 48 months of incarceration, Baker received a sentence of 15 months and Crandall received 5 months.
“These conspirators took funds away from the warfighter,” stated Special Agent in Charge John F. Khin with the Defense Criminal Investigative Service (DCIS), Southeast Field Office. “The DCIS remains committed to investigating and bringing to justice those individuals who attempt to manipulate the procurement process for their own gain.”
“Mr. Clemens guilty plea is significant in sending a message that while fraud involving government contracts may be initially lucrative, nothing lasts forever and the consequences are serious.” “We and our law enforcement partners will work continuously to uncover this type of criminal activity.” Said Thomas J. Holloman III, Special Agent in Charge, IRS Criminal Investigation. The case was prosecuted by Assistant United States Attorney T. DeWayne Pearson of the Columbia office.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 Columbia, South Carolina, returned Indictment(s) against the following:
Nichols Man indicted for Solicitation to Commit a Hobbs Act Armed Robbery
David Lawrence Wallace, Jr., was charged in a 1-count Indictment with Solicitation to Commit Hobbs Act Armed Robbery, a violation of Title 18, United States Code, Section 373. The maximum penalty Wallace could receive is 10 years imprisonment. The case was investigated by agents of the Federal Bureau of Investigations and is assigned to Special Assistant United States Attorney M. Derrick McClellan 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.Spartanburg Man Receives 88 Months for Child Pornography PossessionRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ----United States Attorney Bill Nettles stated today that Kenneth D. Griffin, Jr., age 34, of Spartanburg, was sentenced today in federal court in Greenville, to possession of child pornography, a violation of Title 18, United States Code, Section 2255A. Senior United States District Judge Henry M. Herlong, Jr. of Greenville sentenced Griffin to 88 months imprisonment and ordered him placed on supervised release for life.
Evidence presented at the change of plea hearing established that AOL provided information that an individual in Spartanburg County was sending e-mails containing images of child pornography. The FBI performed an investigation and traced the e-mail account and physical address connected to the messages to Griffin’s home.
The FBI obtained a search warrant for this address and executed it on April 10, 2013. A computer was seized. A forensic exam of the computer revealed hundreds of images of child pornography. After the seizure Defendant met with the FBI and admitted that he had been seeking child pornography using chat rooms on Yahoo.
The case was investigated by agents of the Federal Bureau of Investigation. Assistant United States Attorney Bill Watkins of the Greenville office handled 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.Lancaster Women Sentenced in Tax Fraud SchemeRead the Press Release
Contact Person: DeWayne Pearson (803) 929-3000
Lancaster, South Carolina ----United States Attorney Bill Nettles stated thatAisha J. Craig, age 35, and Ebony N. Eddie, age 34, both of Lancaster, were sentenced in Federal Court for their involvement in a scheme to submit fraudulent tax returns to the Internal Revenue Service. According to facts presented in court, Craig and Eddie used stolen identities to receive over $100,000 in fraudulent tax returns. Both women entered guilty pleas to charges of presenting false claims to the United States in violation of Title 18, United States Code, Section 286, and aggravated identity theft, a violation of Title 18 United States Code, Section 1028A. Craig was sentenced to 48 months and Eddie was sentenced to 54 months imprisonment for their roles in the scheme.
“Investigating refund fraud and identity theft is a top priority of IRS Criminal Investigation”, said IRS-CI Special Agent in Charge Thomas J. Holloman III. “Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers. Today’s sentencing’s should serve as a strong warning to those considering similar conduct. Law enforcement and the US Attorney’s Office will vigorously pursue these crimes and will hold those accountable who would defraud the government.” The case was assigned to Assistant United States Attorney T. DeWayne Pearson of the Columbia office for prosecution.Gaston Man Convicted of Trafficking in Counterfeit MedicationsRead the Press Release
Contact Person: DeWayne Pearson (803) 929-3000
Columbia, South Carolina ----William N. Nettles, United States Attorney for the District of South Carolina announced that Arthur Fleming Moler, age 51, of Gaston, was found guilty after a jury trial of trafficking in counterfeit goods, smuggling illegal medications and theft of government services. Facts presented during the trial showed that Moler sold and shipped counterfeit goods and medications, including illegal replicas of Viagra and Cialis, from his Columbia based business, South Carolina Liquidations
According to testimony presented during the case, United States Customs agents discovered counterfeit golf equipment being shipped from China to South Carolina Liquidations at 1215 Shop Road in Columbia, South Carolina. When investigators entered the warehouse, they discovered hundreds of counterfeit designer handbags, sunglasses, electronic equipment and over 2 million dollars’ worth of counterfeit erectile dysfunction medications. Sentencing in the case has not yet been scheduled but Moler faces a possible sentence of 20 years imprisonment and a fine of $2,000,000.
The case was investigated by the Department of Homeland Security - Immigration and Customs Enforcement and the United States Postal Service and was prosecuted by Assistant United States Attorney T. DeWayne Pearson of the Columbia office.Fort Mill Woman Sentenced to 24 Months Imprisonment for Lying to Federal AgentsRead the Press Release
Contact Person: Stacey Haynes (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Kirstie Elaine Philome Barratt, age 22, of Fort Mill, South Carolina was sentenced to 24 months imprisonment today after earlier pleading guilty to making a false statement to a federal agent, in violation of Title 18, United States Code, Section 1001. United States District Judge Joseph F. Anderson, Jr. imposed the term of imprisonment, which will be followed by a 3 year term of supervised release. In October, Barratt plead straight up to the charge without a plea agreement. Barratt also may face deportation as a result of her guilty plea. During the sentencing hearing, Judge Anderson granted the government’s motion for an upward departure from the federal guidelines sentencing range of 0 to 6 months, noting that this was a “rare” case and that Barratt “knowingly placed a law enforcement officer’s life in jeopardy” by her false statement.
Evidence presented at the earlier change of plea hearing established that during the early morning hours of January 7, 2014, deputized task force agents with the Federal Bureau of Investigation’s (FBI) Charlotte Safe Streets Task Force/Violent Crime Apprehension Team were in Fort Mill, South Carolina searching for a subject (hereinafter “Subject”) who was wanted for an armed robbery of a restaurant in North Carolina. Agents, in police attire and accompanied by York County Sheriff’s Department officers in marked units, approached the residence of the Subject’s girlfriend, Barratt, in an attempt to determine if the Subject was in the residence. After approximately 15 minutes of the agents knocking on the door and announcing their presence with a loud speaker, Barratt came to the door. Barratt, who was advised by agents that it was a crime to make a false statement to federal agents, told the agents that her boyfriend was not in the home, that she had not seen him for two (2) months because they had broken up, and that the only other persons in the residence were her parents. Barratt gave the agents consent to search the residence. Upon completing a sweep of the residence, agents located Barratt’s parents asleep in one upstairs bedroom and noticed the door shut to another upstairs bedroom. Agents could hear a dog barking in that other upstairs bedroom, so they asked Barratt to secure the dog so they could search the bedroom. Barratt went into the bedroom and came out with the dog, but did not tell agents that Subject was in the room armed with a firearm. Agents then went into the bedroom and found the Subject crouched in the corner with his firearm drawn. Gunfire ensued and an FBI task force agent, as well as the Subject, were shot. Both Barratt and the Subject were taken into custody. Barratt later advised agents that she knew her boyfriend was in the residence, that she thought he was going to hide, and that when she entered the bedroom to retrieve the dog, she saw him with the firearm, but did not tell the agents before allowing them to enter the bedroom.
The case was investigated by the FBI, the York County Sheriff’s Department, and the South Carolina Law Enforcement Division (SLED), and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.Notice of Sentencing HearingRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ---- United States Attorney’s Office announces today that there will be a sentencing hearing Monday (December 15, 2014) in United States v. Kirstie Barratt. The hearing will be held at 10:30 am on December 15, 2014, before United States District Judge Joseph F. Anderson, Jr. (courtroom # 4) at the Matthew J. Perry Federal Courthouse in Columbia, South Carolina.
California Woman Sentenced for Failure to Register as a Sex Offender in South CarolinaRead the Press Release
Contact Person: William E. Day II (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Shana Marie Lawson, age 36, was sentenced in federal court in Columbia, South Carolina, for failure to register as a sex offender, a violation of 18 U.S.C. § 2250(a). Chief United States District Judge J. Michelle Childs of Columbia sentenced Lawson to 15 months to be followed by 5 years supervised release .
Evidence presented at the change of plea hearing established that Lawson was sentenced in Virginia for "Travel with Intent to Engage in Sexual Act with a Minor." After serving her sentence in Florida, Lawson moved to California and registered as a sex offender, but then moved to Lancaster, South Carolina, without registering. Investigation revealed that she had been living with someone she met in prison and that person’s family.
The case was investigated by agents of the U.S. Marshal. 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.Ron Wilson Receives Additional Prison TimeRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Ronnie Gene Wilson, age 67, of the Coleman Federal Corrections Institution in Sumterville, Florida, was sentenced today in federal court in Greenville for his involvement in a conspiracy to obstruct justice, a violation of Title 18, United States Code, Section 371. United States District Judge J. Michelle Childs of Greenville imposed a six-month sentence to be served in addition to the 235 months Wilson is now serving for defrauding almost 800 investors. Thus, in total, Wilson is sentenced to 241 months for fraud-related activities.
Evidence presented at the change of plea hearing established that in late 2011 and early 2012, agents with Secret Service and state law enforcement officers began to investigate Atlantic Bullion and Coin and Ronnie Gene Wilson. It was discovered that Wilson operated what is generally described as a “Ponzi scheme.” In April 2012, Wilson confessed to operating the Ponzi.
On April 27, 2012, the United States District Court—with the consent of Wilson and the Government—appointed a Federal Receiver. The Court’s Order directed the Receiver to take immediate possession of all property, assets and estates owned, controlled, used, or in the possession of Wilson.
During the course of the investigation, the Secret Service talked with Wilson on multiple occasions. On or about September 20, 2012, agents interviewed Wilson about possible hidden assets and cash. Wilson was adamant that there were no hidden assets or cash. He stated that he had turned everything over to the Government.
On November 13, 2012 the District Court ordered Wilson to pay approximately $57 million in restitution to the 798 victims of the Ponzi Scheme. He was sentenced to 235 months in prison.
In April 2014, the Government recovered approximately $164,300. This money had been hidden in an ammunition can. Ron Wilson gave this money to a family member to keep for Wilson so he would have something if he was ever released from the Bureau of Prisons.
The evening before Ron Wilson was sentenced in November 2012, evidence established that Ron Wilson visited the hotel room of a family member in Greenville and gave the family member $7000 in cash in an envelope.
In March 2014, Secret Service and the Receiver recovered another ammunition can of money ($172,859). Ron Wilson had given this money to another family member prior to sentencing.
Cassandra Kendall Wilson, age 66, of Woodruff, South Carolina, and Timothy L. Wilson, age 60, of Martin, Tennessee, are both charged in the indictment and have entered pleas of guilty. They will be sentenced at a later date.
The case was investigated by agents of the United States Secret Service. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.Florence Man Sentenced for Possessing Child PornographyRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Andrew Stephen Jackson, age 44, of Florence, South Carolina was sentenced in federal court in Florence, for possession of child pornography, a violation of 18 U.S.C. § 2252A(a)(5)(B) and (b)(2) by United States District Judge R. Bryan Harwell of Florence. Jackson was sentenced to ten years imprisonment to be followed by Supervised Release for Life, during which time Jackson will be required to: register as a sex offender, submit to polygraph examinations, submit to electronic monitoring and receive counseling. Jackson was also ordered to pay $150,000 in restitution to his victims.
Evidence presented at the change of plea hearing established that Jackson traded child pornography with an individual in Australia in October 2010. A search warrant was executed at Jackson's residence and thousands of images of child pornography were found on Jackson's computers.
The case was investigated by agents of the FBI. 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 Attorneys’ 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.Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Greenville, South Carolina ---- United States Attorney Bill Nettles stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictment(s) against the following:
Abbeville County Resident Indicted for Distribution of Child Pornography
Kenneth Mark Brooks, age 53, of Donalds, South Carolina, was charged in a 2-count Indictment with distributing child pornography. The penalty Brooks could receive for each count is not less than five (5) years and not more than twenty (20) years imprisonment and a maximum fine of $250,000.00. This 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.
Foreign Nationals Charged with Illegal Re-entry
Celerino Santaana-Soriano and Andres Francisco were each charged in Indictments with illegal re-entry to the United States, a violation of Title 8, United States Code, Section 1326. The maximum penalty each could receive, depending on their prior criminal history, is two to twenty years imprisonment. These cases were investigated by U.S. Immigration and Customs Enforcement (ICE) agents and are assigned to Assistant United States Attorney Max Cauthen of the Greenville office for prosecution.
Individual Indicted for Failure to Register as a Sex Offender
Billy Owens Orsini was charged in a 1-count Indictment with failure to register as a sex offender, a violation of Title 18, United States Code, Section 2250. The maximum penalty he could receive is ten years imprisonment. The case was investigated by agents of the United States Marshals Service and is assigned to Assistant United States Attorney Max Cauthen of the Greenville office for prosecution.
Greenville Resident Charged with Making Counterfeit Money
Lowman Leon Jamison, II, age 27, of Greenville, South Carolina, was charged in a 3-Count Indictment with making and selling counterfeit U.S. currency, a violation of Title 18, United States Code, Sections 471 and 473. The maximum penalty he could receive is twenty years imprisonment. The case was investigated by agents of the United States Secret Service and is 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.Three Plead Guilty in Gambling Case and Forfeit $20 MillionRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Bobby Mosley, Sr., age 63, of Townville, South Carolina; J. Michael Caldwell, age 42, of Williamston, South Carolina; and Frontier Software Systems, LLC, pled guilty today in federal court in Greenville. Mosley pled guilty to operating an illegal gambling business in violation of 18 U.S.C. § 1995; Caldwell pled guilty to serving as an accessory after the fact to transportation of gambling machines in interstate commerce in violation of 18 U.S.C. § 3; and Frontier Software Systems, LLC, pled guilty to a money laundering conspiracy in violation of 18 U.S.C. § 1956(h). United States District Judge Bruce Howe Hendricks of Greenville accepted the guilty pleas from all three defendants and entered an order of forfeiture whereby the defendants agree to forfeit $20 million to the United States that was derived from criminal activities.
According to the plea agreements and other documents filed in the case, in addition to the three convictions and $20 million forfeiture, the gambling business must move its headquarters out of the District of South Carolina and is banned from engaging in software design, development, or shipment of gambling machines or software in or from the District of South Carolina. The plea agreements recommend probationary sentences for the Defendants and the dismissal of the remaining corporate defendants.
The evidence presented at the change of plea hearing established that Bobby Mosley, Sr. owned a gambling business that was headquartered in Piedmont, South Carolina. In October 2013, federal search and seizure warrants were executed where agents seized several hundred gambling machines and other evidence. South Carolina Code Section 12-12-2710 prohibits the possession of gambling machines in the state of South Carolina. Three hundred and sixteen of the machines seized were “old-fashioned” or “stand-alone” video-poker-type gambling machines. The machines are constructed so that a customer inserted cash directly into the machine, chose the amount of the bet, and watched the electronic simulation of slot machine reels. Once the customer finished playing, and, if the customer won, the machine printed a slip of paper that the customer took to the cashier. The cashier paid the customer in cash. Mosley’s gambling business then split its winnings with the gambling parlor where the machine was operated. Caldwell assisted Mosley in moving these illegal machines in interstate commerce.
Frontier Software Systems, LLC, and others combined to conduct a series of financial and monetary transactions involving the proceeds from the illegal gambling business. Operators of gambling establishments that used Frontier’s software would pay a percentage of the operational net revenue from the gambling activity. Frontier would then use this money to further the gambling business by purchasing, for example, gambling equipment and/or cabinetry through vendors.
The case was investigated by agents of the United States Secret Service, Internal Revenue Service, and various state and local law enforcement agencies. Assistant United States Attorney Bill Watkins and Max Cauthen of the Greenville office handled the case.North Charleston Automobile Dealer Charged with Money LaunderingRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ---- Today United States Attorney Bill Nettles filed an Information charging Huger resident John Nick, age 59, with Money Laundering in violation of 18 U.S.C. §1956 . The Information alleges that in 2010, Nick took payment of $40,000 in cash from an individual, who claimed to be a drug dealer, to purchase a new car and then covered up the transaction by titling the car in the name of a nominee to make it appear as if the car was purchased with an $8,500 cash down payment and the balance financed.
The case was investigated by Special Agents with the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Eric Klumb is prosecuting the case.
The United States Attorney stated that the charges alleged in the Information are merely accusations and that all defendants are presumed innocent until and unless proven guilty.Attorney General Holder Touts Release of New Guidance to Law Enforcement Officers About How to Maintain Order During First Amendment-Protected EventsRead the Press Release
Contact: (202) 514-2007
WASHINGTON— Attorney General Eric Holder on Friday touted the Justice Department’s release of new guidance to law enforcement, which he said would help officers maintain public safety while safeguarding constitutional rights. The guidance was issued by the department’s Bureau of Justice Assistance and Office of Community Oriented Policing Services.
“The Justice Department encourages law enforcement officials, in every jurisdiction, to work with the communities they serve to minimize needless confrontation,” the Attorney General said in a video posted on the department’s website. “It is vital to engage in planning and preparation, from evaluating protocols and training to choosing the appropriate equipment and uniforms. This is the hard work that is necessary to preserve the peace and maintain the public trust at all times—particularly in moments of heightened community tension.”
The complete text of the Attorney General’s video message is below:
“At the United States Department of Justice, we are committed to ensuring that our local law enforcement partners have the resources they need to effectively serve and protect all members of their communities, particularly when citizens exercise their constitutionally protected rights. To that end, the Bureau of Justice Assistance and the Office of Community Oriented Policing Services are providing new guidance to law enforcement officers about how to approach maintaining order during First Amendment-protected events. This comprehensive new guide compiles information, tools, and best practices that will help law enforcement officers maintain public safety while safeguarding constitutional rights.
“As we’ve seen, durable relationships between the police and their communities do not develop overnight. But as someone who has spent a career at all levels of law enforcement—and as the brother of a retired police officer—I know the importance of these outreach efforts to ensuring effective neighborhood policing, officer safety, and community health. The Justice Department encourages law enforcement officials, in every jurisdiction, to work with the communities they serve to minimize needless confrontation. It is vital to engage in planning and preparation, from evaluating protocols and training to choosing the appropriate equipment and uniforms. This is the hard work that is necessary to preserve the peace and maintain the public trust at all times—particularly in moments of heightened community tension.
“Over the past few months, we’ve seen demonstrations and protests that have sought to bring attention to real and significant underlying issues involving police practices, implicit bias, and pervasive community distrust. And in most cases, these demonstrations have been both meaningful and responsible, and have brought vital issues to the attention of the public at large. Similarly, the vast majority of law enforcement officers have honorably defended their fellow citizens engaged in these peaceful protests.
“I know, from first-hand experience, that demonstrations like these have the potential to spark a sustained and positive national dialogue, to provide momentum to a necessary conversation, and to bring about critical reform.
“But history has also shown us that the most successful and enduring movements for change are those that adhere to non-aggression and nonviolence. And so I ask all those who seek to lend their voice to important causes and discussions, and who seek to elevate these vital conversations, to do so in a way that respects the gravity of their subject matter. Peaceful protest has been a hallmark, and a legacy, of past movements for change, from patriotic women who demanded access to the franchise, to the civil rights pioneers who marched for equal rights and equal justice. Americans exercising their First Amendment right to free assembly should look to those examples as they work to bring about real and lasting change for themselves and for future generations.
“Of course, I recognize that progress will not come easily, and long-simmering tensions will not be cooled overnight. These struggles go to the heart of who we are, and who we aspire to be, both as a nation and as a people—and it is clear that we have a great deal of important work to do. But as we move forward, the Department of Justice—and I personally—will continue to work with law enforcement and communities throughout the country to help build the more perfect Union—and the more just society—that all Americans deserve.”
The full video of the Attorney General’s message is available at http://www.justice.gov/opa/video/maintaining-public-safety-while-safeguarding-constitutional-rights.14-1308
DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.Man Sentenced to 151 Months in Federal Prison for Murder for HireRead the Press Release
Contact Person: Nathan Williams (843) 727-4381
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Edward Clinton Jones III, age 42, of Charleston, was sentenced to 151 months imprisonment for Use of Interstate Commerce Facilities in the Commission of Murder for Hire, 18 U.S.C. § 1958(a), and Solicitation of Murder for Hire, 18 U.S.C. § 373.
Jones pled guilty to the offenses on August 29, 2014. Facts set forth at his guilty plea and sentencing established that Jones solicited an individual to have his wife murdered so that Jones could collect the insurance proceeds from her death. This individual then went to the police, and an undercover officer was introduced to Jones. Jones then discussed details of having his wife killed with the undercover officer, and provided the undercover officer with a picture of his wife so they could properly identify her. Jones also discussed where his wife could be located, the type of vehicle she drove, where the murder could best be committed, and how he would divide the life insurance money with those he recruited to commit the murder.
Jones was sentenced by United States District Judge Richard M. Gergel. The convictions and sentences are the result of an investigation conducted by the City of Charleston Police Department and the Federal Bureau of Investigations. Assistant United States Attorney Nathan Williams of the Charleston office prosecuted the case.Ladson Woman Charged with Bank FraudRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated that his office has filed an Information charging Yvondia “Susan” Young, age 57, with Bank Fraud in violation of 18 U.S.C. §1344 . The Information alleges that from 2007 to 2013, Young embezzled approximately $325,000 from her employer, the Heritage Trust Federal Credit Union, by issuing official credit union checks to make payments on her credit card bills.
The case was investigated by Special Agents with the Federal Bureau of Investigation. Assistant United States Attorney Eric Klumb is prosecuting the case.
The United States Attorney stated that the charges alleged in the Information are merely accusations and that all defendants are presumed innocent until and unless proven guilty.Business Enters Plea in Grant Theft CaseRead the Press Release
Contact Person: DeWayne Pearson (803) 929-3000
Columbia, South Carolina ---- Brian Morin, age 47 of Greenville, SC, entered a guilty plea to theft of government funds in violation of Title 18, United States Code, Section 641 in connection with a grant 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. Sentencing has not yet been scheduled, and Morin faces a maximum penalty of one year imprisonment and a fine of $5,000.
“The Small Business Innovation Research Program sets aside funds to support small companies that conduct innovative research. This plea stresses the importance of maintaining and reporting accurate time and effort expended on Federal grants, and sends a strong message to those who provide false information to the Federal Government. I commend the U.S. Attorney’s office for its strong support in this case” said Allison Lerner, the National Science Foundation Inspector General. The case was prosecuted by Assistant United States Attorney T. DeWayne Pearson of the Columbia office.GenPhar Inc., Vaxima, Inc, Convicted of Fraud, No Verdict Reached on Jian DongRead the Press Release
Contact Person: Nathan Williams (843) 727-4381
Columbia, South Carolina ---- United States Attorney William N. Nettles stated today that GenPhar Inc. and Vaxima Inc. were convicted on Friday, November 14, 2013 following a ten day trial in Federal Court. The jury did not reach a verdict on Jian Yun Dong, aka John Dong, and a mistrial was declared regarding his charges.
All three defendants were charged with Conspiracy to Commit Grant Fraud, Wire Fraud, Theft of Government Property and Providing False Statements. GenPhar and Vaxima were each convicted of one count of Theft of Government Property. GenPhar was convicted of an additional seventeen counts of Wire Fraud, and Vaxima was convicted of an additional sixteen counts of Wire Fraud. The jury did not reach a verdict on the Conspiracy count as to any defendant, on any counts against defendant Jian Dong, and one count of Wire Fraud. A mistrial was declared on those counts, and a hearing date regarding them has yet to be set.
The trial began on November 5, 2014, and concluded on November 14, 2014. Testimony at trial established that federal grant money was obtained by GenPhar and Vaxima for purposes of biodefense research, but was used for other purposes, specifically to construct a commercial office building. Testimony further established that a total of approximately six million dollars were spent on the construction, which included approximately four million dollars of improperly diverted grant money.
The Hon. C. Weston Houck presided over the trial. The convictions are the result of an investigation conducted by the Department of Health and Human Services Office of Inspector General, the Defense Criminal Investigative Service, the Federal Bureau of Investigation, and the U.S. Army Criminal Investigation Command. Assistant United States Attorneys Eric Klumb and Nathan Williams of the Charleston office prosecuted the case.Ron Wilson's Wife and Brother Plead Guilty to Conspiracy to Hide AssetsRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Cassandra Kendall Wilson, age 66, of Woodruff, South Carolina, and Timothy L. Wilson, age 60, of Martin, Tennessee, pled guilty today in federal court in Greenville, to conspiracy to obstruct justice, a violation of Title 18, United States Code, Section 371. United States District Judge J. Michelle Childs of Greenville accepted the 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 in late 2011 and early 2012, agents with Secret Service and state law enforcement officers began to investigate Atlantic Bullion and Coin and Ronnie Gene Wilson. It was discovered that Wilson operated what is generally described as a “Ponzi scheme.” In April 2012, Wilson confessed to operating the Ponzi.
On April 27, 2012, the United States District Court—with the consent of Wilson and the Government—appointed a Federal Receiver. The Court’s Order directed the Receiver to take immediate possession of all property, assets and estates owned, controlled, used, or in the possession of Wilson.
During the course of the investigation, the Secret Service talked with Wilson on multiple occasions. On or about September 20, 2012, agents interviewed Wilson about possible hidden assets and cash. Wilson was adamant that there were no hidden assets or cash. He stated that he had turned everything over to the Government.
On November 13, 2012 the District Court ordered Wilson to pay approximately $57 million in restitution to the 798 victims of the Ponzi Scheme. He was sentenced to 235 months in prison.
In April 2014, the Government recovered approximately $164,300. This money had been hidden in an ammunition can. Ron Wilson gave this money to Timothy L. Wilson member to keep for Ron Wilson so he would have something if he was ever released from the Bureau of Prisons.
The evening before Ron Wilson was sentenced in November 2012, evidence established that Ron Wilson visited the hotel room of Timothy L. Wilson in Greenville and gave him $7000 in cash in an envelope.
In March 2014, Secret Service and the Receiver recovered another ammunition can of money ($172,859). Ron Wilson had given this canister to Cassandra K. Wilson prior to his sentencing hearing.
Mr. Nettles stated the maximum penalty Defendants can receive is a fine of $250,000 and/or imprisonment for 5 years, plus a special assessment of $100.
The case was investigated by agents of the United States Secret Service. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.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 Columbia, South Carolina, returned Indictment(s) against the following:
Piedmont Resident Indicted for Conspiring to Steal Mail
Emily D. Keller, age 34, of Piedmont, South Carolina, was charged in a 1-count Indictment with conspiracy to steal mail and possess stolen mail; a violation of Title 18, United States Code, Section 371. The maximum penalty Keller could receive is five (5) years imprisonment and a maximum fine of $250,000.00. The case was investigated by agents of the United States Postal Inspection Service and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.
Spartanburg Woman Charged with Embezzlement
Michelle P. Posey, age 43, of Spartanburg, South Carolina, was charged in a 1-count Indictment with embezzlement by a bank employee, a violation of Title 18, United States Code, Section 656. The maximum penalty Posey could receive is thirty (30) years imprisonment and a fine of $1,000,000. The case was investigated by agents of the Federal Bureau of Investigation and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.
Individual Indicted for Transporting Illegal Aliens
Adrian Flores was charged in a 4-count Indictment with transportation of illegal aliens, a violation of Title 8, United States Code, Section 1324. The maximum penalty he could receive is ten years imprisonment. This 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 Max Cauthen of the Greenville office for prosecution.
Foreign Nationals Charged with Illegal Re-entry
Erlis Antonio Pineda, Magnolio Diaz-Lopez, and Roberto Montiel-Vasquez were each charged in Indictments with illegal re-entry to the United States, a violation of Title 8, United States Code, Section 1326. The maximum penalty each could receive, depending on their prior criminal history, is two to twenty years imprisonment. These cases were investigated by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) special agents and are assigned to Assistant United States Attorney Max Cauthen of the Greenville office for prosecution.
Anderson Resident Charged with Possession of Counterfeit Money
Ivan Stanislavovich Nechitaylo, age 27, of Anderson, South Carolina, was charged in an Indictment with possession of counterfeit U.S. currency, a violation of Title 18, United States Code, Section 472. The maximum penalty he could receive is twenty years imprisonment. This case was investigated by agents of the United States Secret Service and is assigned to Assistant United States Attorney Max Cauthen of the Greenville office for prosecution.
Individual Indicted for Social Security Fraud
Juana Padron-Padron was charged in an Indictment with social security fraud, a violation of Title 42, United States Code, Section 408. The maximum penalty he could receive is five years imprisonment. This 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 Max Cauthen of the Greenville office for prosecution.
Florida Men Charged with Aggravated Identity Theft
Steve Bryan Rojas, age 25, of Pembroke Pines, Florida, and Steven Rives, age 30, of Miami, Florida, were charged in a 2-count Indictment with conspiracy to use an unauthorized access device, in violation of Title 18, United States Code, Section 1029(b)(2); and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). The maximum penalty each could receive is five years imprisonment for the conspiracy charge and two years consecutive imprisonment for the identity theft charge. This case was investigated by agents of 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.
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.