Eastern District of Tennessee
Press releases recorded for this federal judicial district.
Department of Justice Launches A National Nursing Home InitiativeRead the Press Release
Knoxville, Tenn. – U.S. Attorney J. Douglas Overbey joined Attorney General William P. Barr in announcing today the Department of Justice’s National Nursing Home Initiative, which will coordinate and enhance civil and criminal efforts to pursue nursing homes that provide grossly substandard care to their residents.
The National Nursing Home Initiative focuses on some of the worst nursing homes around the country and the Department has already initiated investigations into approximately thirty individual nursing facilities in nine states as part of this effort.
“Millions of seniors count on nursing homes to provide them with quality care, and to treat them with dignity and respect when they are most vulnerable,” said Attorney General William P. Barr. “Yet, all too often, we have found nursing home owners or operators who put profits over patients, leading to instances of gross abuse and neglect. This national initiative will bring to justice those owners and operators who have profited at the expense of their residents, and help to ensure residents receive the care to which they are entitled.”
“Protecting seniors is a top priority of the U.S. Attorney’s Office for the Eastern District of Tennessee”, said U.S. Attorney Overbey. “Many senior citizens experience circumstances that make them particularly vulnerable to fraud and abuse. Victimization of our elderly citizens, by either abuse or financial exploitation, is inexcusable and will result in the prosecution of anyone who commits these crimes. The U.S. Attorney’s office will continue to coordinate with our federal, state, and local law enforcement partners to fight elder fraud and abuse throughout our region.”
The department considers a number of factors in identifying the most problematic nursing homes. For example, the department looks for nursing homes that consistently fail to provide adequate nursing staff to care for their residents, fail to adhere to basic protocols of hygiene and infection control, fail to provide their residents with enough food to eat so that they become emaciated and weak, withhold pain medication, or use physical or chemical restraints to restrain or otherwise sedate their residents.
Care failures victimize residents, causing them to suffer in pain and to be exposed to the great indignities. Care failures cause residents to develop pressure sores down to the bone, to lie in their own waste for hours, to starve because they cannot reach the food on their trays and to remain unwashed for weeks at a time. Nursing homes that provide grossly substandard care also force vulnerable elderly residents who cannot leave the facilities to live in filthy and dangerous conditions where there are leaks in the roofs, mold is found growing in facilities, and rodents are found living in residents’ rooms. These are some of the gross actions and the inactions that the department intends to pursue and prosecute.
The National Nursing Home Initiative reflects the department’s larger strategy and commitment to protecting our nation’s seniors, coordinated by the department’s Elder Justice Initiative in conjunction with the U.S. Attorneys’ Offices. The Elder Justice Initiative and the U.S. Attorneys’ Offices are essential to the department’s investigative and enforcement efforts against nursing homes and other long-term care entities that deliver grossly substandard care to Medicare and Medicaid beneficiaries. The Initiative and the U.S. Attorneys’ Offices also support the efforts of state and local prosecutors, law enforcement, and other elder justice professionals to combat elder abuse, neglect and financial exploitation, with the development of training, resources, and information. Learn more about the Justice Department’s Elder Justice Initiative at http://www.justice.gov/elderjustice/.
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Department of Justice Charges Unprecedented Number of Elder Fraud Defendants Nationwide and Launches HotlineRead the Press Release
Knoxville, Tenn. – U.S. Attorney J. Douglas Overbey of the Eastern District of Tennessee joined Attorney General William P. Barr, FBI Director Christopher A. Wray, and Chief Postal Inspector Gary R. Barksdale today in announcing the largest coordinated sweep of elder fraud cases in history. This year, prosecutors charged more than 400 defendants, far surpassing the 260 defendants charged in cases as part of last year’s sweep. In each case, offenders allegedly engaged in financial schemes that targeted or affected seniors. In total, the charged elder fraud schemes caused alleged losses of over a billion dollars.
Two cases from the Eastern District of Tennessee:
Joshua Small, 52, was sentenced to 30 years in prison and Joni Amber Johnson, 36, was sentenced to 25 years in prison, for their roles in a conspiracy to assault, kidnap, and rob elderly victims.
Christina Erin Myers, 37, pled guilty to one count of wire fraud and one count of money laundering. The defendant admitted to engaging in a scheme to defraud elderly individuals by diverting funds for the purchase of real estate through marketing of non-existent senior communities and investment opportunities.
Attorney General Barr made the announcement at an event in Florida entitled "Keeping Seniors Safe," which outlined his vision for protecting older Americans from financial harm. The event focused special attention on the threat posed by foreign-based fraud schemes that victimize seniors in large numbers. During the event, the Attorney General declared "Prevention and Disruption of Transnational Elder Fraud" to be an Agency Priority Goal, making it one of the Department’s four top priorities.
“Americans are fed up with the constant barrage of scams that maliciously target the elderly and other vulnerable citizens,” said Attorney General William P. Barr. “This year, the Department of Justice prosecuted over 400 defendants, whose schemes totaled more than a billion dollars. I want to thank the men and women of the Department’s Consumer Protection Branch, which coordinated this effort, and all those in the U.S. Attorneys’ Offices and Criminal Division who worked tirelessly to bring these cases. The Department is committed to stopping the full range of criminal activities that exploit America’s seniors.”
“We have made great strides this year towards prosecuting those who seek to victimize some of our nation’s most vulnerable citizens through scams and financial fraud,” said U.S. Attorney Overbey. “I would urge the public to continue bringing instances of elder fraud to the federal government’s attention. Protecting our seniors remains one of the top priorities for the U.S. Attorney’s Office, and we will continue to work with our local, state, and federal law enforcement partners to investigate and prosecute those who seek to cause harm to senior citizens within our district.”
This interactive map provides information on the elder fraud cases highlighted by today’s sweep announcement.
Elder Fraud Hotline
Attorney General Barr also announced the launch of a National Elder Fraud Hotline, which will provide services to seniors who may be victims of financial fraud. The Hotline will be staffed by experienced case managers who can provide personalized support to callers. Case managers will assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll free number is 833-FRAUD-11 (833-372-8311).
For the second year, the Department of Justice and its law enforcement partners also took comprehensive action against the money mule network that facilitates foreign-based elder fraud. Generally, perpetrators use a “money mule” to transfer fraud proceeds from a victim to ringleaders of fraud schemes who often reside in other countries. Some of these money mules act unwittingly, and intervention can effectively end their involvement in the fraud. The FBI and the Postal Inspection Service took action against over 600 alleged money mules nationwide by conducting interviews, issuing warning letters, and bringing civil and criminal cases. Agents and prosecutors in more than 85 federal district participated in this effort to halt the money flow from victim to fraudster. These actions against money mules were in addition to the criminal and civil cases announced as part of this year’s elder fraud sweep.
These outreach efforts have helped to prevent seniors from falling prey to scams and have frustrated offenders’ efforts to obtain even more money from vulnerable elders.
The charges announced today are allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Researcher at University Arrested for Wire Fraud and Making False Statements About Affiliation with a Chinese UniversityRead the Press Release
UPDATE
The defendant in this case, Anming Hu, was acquitted by the court of the charges alleged in the indictment described in the press release below.
Anming Hu, a an Associate Professor in the Department of Mechanical, Aerospace and Biomedical Engineering at the University of Tennessee, Knoxville (UTK) was arrested today on a federal indictment and charged with three counts of wire fraud and three counts of making false statements.
“Hu allegedly committed fraud by hiding his relationship with a Chinese university while receiving funding from NASA,” said Assistant Attorney General for National Security John C. Demers. “This is just the latest case involving professors or researchers concealing their affiliations with China from their American employers and the U.S. government. We will not tolerate it.”
“The United States Attorney’s Office takes seriously fraudulent conduct that is devised to undermine federally-mandated funding restrictions related to China and Chinese universities,” said U.S. Attorney J. Douglas Overbey for the Eastern District of Tennessee. “The University of Tennessee has cooperated with the investigation, and the U.S. Attorney’s Office values the university’s assistance in this matter.”
The indictment alleges that beginning in 2016, Hu engaged in a scheme to defraud the National Aeronautics and Space Administration (NASA) by concealing his affiliation with Beijing University of Technology (BJUT), a university in China. Federal law prohibits NASA from using appropriated funds on projects in collaboration with China or Chinese universities. As alleged in the indictment, Hu’s false representations and omissions to UTK about his affiliation with BJUT caused UTK to falsely certify to NASA that UTK was in compliance with this federal law.
If convicted, Hu faces up to 20 years in federal prison and a fine up to $250,000 on each of the wire fraud counts, and up to five years in prison on each of the false statement counts.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the assigned judge. In all cases, defendants are presumed innocent until and unless proven guilty; indictments merely contain allegations supported by probable cause.
The case is being investigated by the FBI, the Offices of the Inspectors General for NASA and the Department of Energy. The case is being prosecuted by Assistant U.S. Attorneys Casey Arrowood and Frank Dale of the Eastern District of Tennessee, and Trial Attorney Nathan Charles of the National Security Division’s Counterintelligence and Export Control Section.
Researcher at University of Tennessee Arrested for Wire Fraud and Making False Statements About Affiliation with A Chinese UniversityRead the Press Release
Knoxville, Tenn. – U.S. Attorney J. Douglas Overbey and FBI Special-Agent-in-Charge Joseph E. Carrico announced today the arrest of a researcher at the University of Tennessee, Knoxville (UTK), following the return of a federal grand jury’s indictment. Anming Hu, 51, an Associate Professor in the Department of Mechanical, Aerospace and Biomedical Engineering at UTK, is charged with three counts of wire fraud and three counts of making false statements.
The indictment alleges that beginning in 2016, Hu engaged in a scheme to defraud the National Aeronautics and Space Administration (NASA) by concealing his affiliation with Beijing University of Technology (BJUT) in China. Federal law prohibits NASA from using federally appropriated funds on projects in collaboration with China or Chinese universities. As alleged in the indictment, Hu’s false representations and omissions to UTK about his affiliation with BJUT caused UTK to falsely certify to NASA that UTK was in compliance with federal law.
“The United States Attorney’s Office takes seriously fraudulent conduct that is devised to undermine federally-mandated funding restrictions related to China and Chinese universities,” said U.S. Attorney J. Douglas Overbey for the Eastern District of Tennessee. “The University of Tennessee has cooperated with the investigation, and the U.S. Attorney’s Office values the university’s assistance in this matter.”
“Hu allegedly committed fraud by hiding his relationship with a Chinese university while receiving funding from NASA,” said Assistant Attorney General for National Security John C. Demers. “This is just the latest case involving professors or researchers concealing their affiliations with China from their American employers and the U.S. government. We will not tolerate it.”
“The FBI and its federal government, private-sector, and academic partners will continue to investigate and collaborate to counter these efforts at concealment, wherever they occur,” said FBI Special-Agent-in-Charge Joseph E. Carrico.
If convicted, Hu faces up to 20 years in federal prison and a fine up to $250,000 on each of the wire fraud counts, and up to five years in prison on each of the false statement counts.
The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by the assigned judge. In all cases, defendants are presumed innocent until and unless proven guilty; indictments merely contain allegations supported by probable cause.
The case is being investigated by the Federal Bureau of Investigation, the Offices of the Inspectors General for NASA and the Department of Energy, and the Department of Homeland Security-Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorneys Casey Arrowood and Frank Dale of the U.S. Attorney’s Office for the Eastern District of Tennessee, and Trial Attorney Nathan Charles of the Department of Justice’s National Security Division’s Counterintelligence and Export Control Section.
This case is part of the Department of Justice’s China Initiative, which reflects the strategic priority of countering national security threats and reinforces the President’s overall national security strategy. In addition to identifying and prosecuting those engaged in trade secret theft, hacking and economic espionage, the initiative will increase efforts to protect our critical infrastructure against external threats including direct foreign investment, supply chain threats and the foreign agents seeking to influence the American public and policymakers without proper registration.
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Ginseng Dealer Pleads Guilty to Multiple FeloniesRead the Press Release
[GREENEVILLE, Tenn.] —Michael Keith Turner of Hartford, Tennessee, pled guilty today before Senior United States District Judge R. Leon Jordan to three federal felony counts charging that Mr. Turner had created false records to conceal illegal purchases of ginseng made prior to the legal harvest season in 2015. The grand jury indictment charged that Mr. Turner had violated the Lacey Act, a federal law enacted to combat the illegal trafficking of plants and wildlife, while operating of his ginseng business, known as “High Mountain Ginseng.” This plea is the result of “Operation Green Gold,” a multi-jurisdiction investigation conducted by the U.S. Fish and Wildlife Service (USFWS) into the illegal harvesting, trafficking, and smuggling of American Ginseng.
As part of his plea agreement, Mr. Turner agreed to pay restitution to the State of Tennessee and perform 100 hours of community service. Sentencing is set for June 11, 2020, at 1:15 p.m., and Mr. Turner faces a maximum term of imprisonment of up to 15 years.
American Ginseng (Panax quinquefolius), is a slow-growing perennial species of plant found throughout the Northeast, Midwest, and Appalachian regions of the United States. Wild American Ginseng has substantial commercial value because there is a national and international market for its use as an ingredient in food, drinks, and traditional medicines. American Ginseng is protected under the Convention on International Trade in Endangered Species of Wild Fauna and Flora of 1973 (CITES) and the Endangered Species Act (ESA). The purpose of CITES is to monitor, control, and restrict, as necessary, the international trade of certain wild plant and animal species in an effort to prevent adverse impacts and ensure continued existence of those species in their natural habitat.
In Tennessee, the Tennessee Department of Environmental Conservation (TDEC) has responsibilities, under CITES, the ESA, and state law, to regulate and monitor the commercial harvest of wild American Ginseng and to ensure that populations are not imperiled. Accordingly, American Ginseng dealers are required to routinely submit paperwork to TDEC to document their ginseng purchases. Mr. Turner admitted to falsifying several of those documents in 2015 after purchasing American Ginseng before the opening of the established season for harvesting and purchasing American Ginseng. The USFWS investigates illegal ginseng trafficking associated with the international and interstate trade under the Lacey Act.
The guilty plea was announced today by Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division, the United States Attorney for the Eastern District of Tennessee, J. Douglas Overbey, and Assistant Director Edward Grace of the Office of Law Enforcement for the USFWS.
“By falsifying records in the manner he did, the defendant, and other Ginseng dealers like him, frustrate the regulatory system put in place by the USFWS, TDEC, and others making it impossible to effectively manage and protect an imperiled species. In doing so they are also fostering an interstate black market in protected wildlife and plants that is decimating this country’s natural resources. This felony plea sends a clear message that the United States will prosecute the kind of conduct Mr. Turner took responsibility for today,” stated Assistant Attorney General Bossert Clark.
The USFWS conducted the investigation in this case. The United States is represented in Court by Assistant United States Attorney Matthew T. Morris and Environmental Crimes Section Senior Trial Attorney Todd Gleason.
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Federal Jury Convicts Terry Lee Gilbreath on Production of Child PornographyRead the Press Release
Knoxville, Tenn. – On February 19, 2020, following a two-day trial, Terry Lee Gilbreath, 57, of Madisonville, Tennessee, was convicted by a jury on two counts of production of child pornography in the United States District Court.
Sentencing is set for June 16, 2020, at 2:00p.m., in United States District Court at Knoxville. Terry Lee Gilbreath faces a sentence of 15 to 30 years in prison, a lifetime of supervision and placement on the sex offender registry.
The evidence presented at trial proved the defendant befriended an eight-year-old girl at a yard sale, drove her home, and immediately inserted himself into the lives of her vulnerable family. The proof further showed that within a month, the defendant videoed and photographed his sexual molestation of the eight-year-old child.
“Cases such as this offend the sensibilities of all decent persons. The perpetrators are reprehensible for their victimization of vulnerable and innocent children,” said United States Attorney J. Douglas Overbey. “Those who use and abuse our children for pornographic purposes and the gratification of their sexual perversions will be prosecuted to the full extent of the law and deserve the harshest of punishments.
Law enforcement agencies taking part in the joint investigation which led to indictment and subsequent conviction of Terry Lee Gilbreath included Homeland Security Investigations (HSI), Knoxville Police Department Internet Crimes Against Children Unit, Madisonville Police Department and Monroe County Sheriff’s office.
Assistant U.S. Attorney Jennifer Kolman represented the United States.
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Thomas Louis Motisi Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
Telford, Tennessee – On February 14, 2020, Thomas Louis Motisi, 51, currently of Staten Island, New York, was sentenced by U.S. District Judge Clifton L. Corker, in the United States District Court for the Eastern District of Tennessee at Greeneville.
Motisi was sentenced to 160 months in prison for his role in a conspiracy to distribute methamphetamine in the Eastern District of Tennessee.
In the spring of 2016, multiple local and federal agencies worked together to investigate potential suspects in a methamphetamine distribution conspiracy in Telford, Tennessee. Through the investigation, Motisi was found to be involved in the drug conspiracy. Motisi purchased methamphetamine from drug suppliers and redistributed the methamphetamine to other drug dealers and users. In November 2019, Motisi was found guilty at trial of conspiracy to distribute 50 grams or more of methamphetamine.
This investigation was the product of a partnership between the Drug Enforcement Administration (DEA) and the Washington County Sheriff’s Department.
Assistant U.S. Attorneys Meghan L. Gomez and Emily M. Swecker represented the United States in court.
The investigation is a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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Federal Jury Convicts Four Defendants for Operating Knoxville-Area Pill MillsRead the Press Release
A federal jury returned a guilty verdict yesterday against four defendants for their roles in running “pill mills,” announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney J. Douglas Overbey of the Eastern District of Tennessee.
A federal jury convicted Sylvia Hofstetter, 55, of Miami, Florida, and Courtney Newman, 44, Cynthia Clemons, 47, and Holli Womack, aka “Holli Carmichael,” 46, all of Knoxville, Tennessee. The jury returned guilty verdicts against Hofstetter for a Racketeer Influenced and Corrupt Organization (RICO) conspiracy, a drug conspiracy, money laundering and maintaining drug-involved premises, and guilty verdicts against Newman, Clemons and Womack for maintaining drug-involved premises.
The verdict follows a three-month trial presided over by U.S. District Judge Thomas A. Varlan for the Eastern District of Tennessee. The United States presented testimony from 55 witnesses throughout the trial, including former patients, employees, medical providers, and expert medical witnesses.
Sentencing hearings are tentatively set for Newman in July 2020, Clemons and Womack in August 2020, and Hofstetter in September 2020.
The drug conspiracy involved the distribution of over 11 million tablets of oxycodone, oxymorphone and morphine that generated over $21 million of clinic revenue, with a corresponding street value of $360 million. The conspiracy involved four separate clinics in Tennessee, which, the evidence showed, were essentially pill mills. Before opening these pill mills in Tennessee, testimony established that Hofstetter worked at a Florida-based pill mill in Hollywood, Florida, which was raided by the Drug Enforcement Administration (DEA) in December 2010. Testimony revealed that law enforcement’s crackdown on hundreds of pill mills in South Florida during that time-period precipitated the move to East Tennessee, where a large percentage of those clinics’ opioid-addicted customers lived.
The charges resulted from an investigation by the Criminal Division’s Organized Crime and Gang Section (OCGS), the U.S. Attorney’s office for the Eastern District of Tennessee, and the FBI High Intensity Drug Trafficking Area (HIDTA), comprised of investigators assigned to the task force by the Loudon County Sheriff’s Office, Knoxville Police Department, Blount County Sheriff’s Office, Roane County Sheriff’s Office, Harriman Police Department, and Clinton Police Department. Other agencies provided invaluable assistance, including the Rome Attaché of the Criminal Division’s Office of International Affairs, FBI’s liaison in Rome, FBI’s Miami Field Office, the Hollywood, Florida, Police Department, the U.S. Department of Health and Human Services, the Tennessee Department of Health and the DEA’s Knoxville Diversion Group.
Assistant U.S. Attorneys Tracy L. Stone, Deputy Chief Attorney Kelly Pearson and Trial Attorney Damare Theriot of OCGS prosecuted the case.
This case was part of the department's Organized Crime Drug Enforcement Task Force (OCDETF) and the HIDTA programs. OCDETF is the primary weapon of the United States against the highest level drug trafficking organizations operating within the United States, importing drugs into the United States, or laundering the proceeds of drug trafficking. The HIDTA program enhances and coordinates drug control efforts among local, state, and federal law enforcement agencies. The program provides agencies with coordination, equipment, technology and additional resources to combat drug trafficking and its harmful consequences in critical regions of the United States.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Federal Jury Convicts Four Defendants for Operating Knoxville-Area "Pill Mills"Read the Press Release
Knoxville, Tenn. – A federal jury returned a guilty verdict against four defendants for their roles in running “pill mills,” announced Assistant Attorney General Brian A. Benczkowksi of the Justice Department’s Criminal Division and U. S. Attorney J. Douglas Overbey of the Eastern District of Tennessee.
After five days of deliberation, a federal jury returned a guilty verdict against Sylvia Hofstetter, 55, of Miami, Florida, and Courtney Newman, 44, Cynthia Clemons, 47, and Holli Womack, a.k.a. “Holli Carmichael,” 46, all of Knoxville, Tenn. The jury returned guilty verdicts against Hofstetter for a Racketeer Influenced and Corrupt Organization (RICO) conspiracy, a drug conspiracy, money laundering, and maintaining drug-involved premises, and guilty verdicts against Newman, Clemons, and Womack for maintaining drug-involved premises.
The verdict follows a three-month trial presided over by United States District Judge Thomas A. Varlan in the United States District Court for the Eastern District of Tennessee at Knoxville. The United States presented testimony from 55 witnesses throughout the trial, including former patients, employees, medical providers, and expert medical witnesses.
Defendant Hofstetter faces a term of up to 20 years in prison and a $1,000,000 fine. The remaining defendants face up to 20 years in prison and fines up to $500,000. Sentencing hearings are tentatively set for Newman in July 2020, Clemons and Womack in August 2020, and Hofstetter in September 2020.
The drug conspiracy involved the distribution of over 11 million tablets of oxycodone, oxymorphone, and morphine that generated over $21 million of clinic revenue, with a corresponding street value of $360 million. The conspiracy involved four separate clinics in Tennessee, which, the evidence showed, were essentially pill mills. Before opening these pill mills in Tennessee, testimony established that Hofstetter worked at a Florida-based pill mill in Hollywood, Florida, which was raided by the Drug Enforcement Administration (DEA) in December 2010. Testimony revealed that law enforcement’s crackdown on hundreds of pill mills in South Florida during that time-period precipitated the move to East Tennessee, where a large percentage of those clinics’ opioid-addicted customers lived.
United States Attorney Overbey said, “This office appreciates the extremely hard work by the jury to reach this verdict. The verdict should demonstrate the dire consequences to individuals who participate in greedy schemes to make money and cause so many to suffer from the opioid crisis. To the men and women on the investigative and prosecution teams, we salute the sacrifices you made and the skills you demonstrated to achieve justice in this long and complex trial.”
“The devastation inflicted on families due to the illicit drug trade is immeasurable. The reprehensible actions of those responsible will not be tolerated. As evidenced by these convictions, the FBI and our law enforcement partners will never stop working to put those people who run pill mills behind bars,” said the FBI’s Special Agent in Charge, Joe Carrico.
This superseding indictment resulted from an investigation by the United States Attorney’s Office for the Eastern District of Tennessee, the Organized Crime and Gang Section, U.S. Department of Justice, and the FBI High Intensity Drug Trafficking Area (HIDTA), comprised of investigators assigned to the task force by the Loudon County Sheriff’s Office, Knoxville Police Department, Blount County Sheriff’s Office, Roane County Sheriff’s Office, Harriman Police Department, and Clinton Police Department. Other agencies provided invaluable assistance, including the FBI’s Miami Field Office, the Hollywood, Florida, Police Department, the United States Department of Health and Human Services, the Tennessee Department of Health, and the Drug Enforcement Administration’s Knoxville Diversion Group.
Eastern District of Tennessee Assistant U.S. Attorney Tracy L. Stone, along with Deputy Chief Kelly Pearson and Trial Attorney Damare Theriot of the Organized Crime and Gang Section, with the U.S. Department of Justice, represented the United States.
This case was part of the Department's Organized Crime Drug Enforcement Task Force (OCDETF) and the HIDTA programs. OCDETF is the primary weapon of the United States against the highest level drug trafficking organizations operating within the United States, importing drugs into the United States, or laundering the proceeds of drug trafficking. The HIDTA program enhances and coordinates drug control efforts among local, State, and Federal law enforcement agencies. The program provides agencies with coordination, equipment, technology, and additional resources to combat drug trafficking and its harmful consequences in critical regions of the United States.
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Dustin Richards Sentenced to 97 Months in Prison for Child Pornography OffensesRead the Press Release
Knoxville, Tenn. - On February 13, 2020, Dustin Ray Richards, 26, of Knoxville, Tennessee, was sentenced by United States District Judge Thomas A. Varlan to serve 97 months in federal prison for receiving and possessing child pornography. Following his imprisonment, Richards will be supervised by the U.S. Probation Office for 10 years and will be required to register with the state sex offender registry in any state in which he lives, works, or attends school.
In March 2018, Knoxville Police Department’s Internet Crimes Against Children Unit investigated to identify individuals who were using peer-to-peer software to share child pornography within Tennessee. The investigation uncovered an Internet Protocol (“IP”) address in Knoxville that was making child pornography files available for downloading. The IP address was traced to Richards and a federal search warrant was executed on his residence. The execution of a federal search warrant led to the discovery of over 10,000 images and videos containing child pornography stored on Richards’s computer.
The case was investigated by the Knoxville Police Department’s Internet Crimes Against Children Unit. Assistant U.S. Attorney Matthew T. Morris represented the United States in Court.
This case was brought forward as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet and to identify and rescue victims. For more information about PSC, please visit www.projectsafechildhood.gov.
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Attorney General William Barr Holds National Press Conference on Sanctuary CitiesRead the Press Release
Knoxville, Tenn. - On February 10, 2020, Attorney General William Barr announced the filing of 3 lawsuits against California, New Jersey and Washington State, alleging that sanctuary city municipal jurisdiction policies interfere with lawful federal immigration and enforcement activities.
Sanctuary jurisdiction policies jeopardize public safety by preventing the federal government from locating, arresting, and prosecuting removable aliens inside the United States. While jurisdictions are not compelled by federal law to take part in federal immigration enforcement activities, they are not permitted to actively obstruct the enforcement of federal law. The consequences of cities establishing themselves as sanctuary cities impact more than just the communities of the sanctuary jurisdiction where heinous, violent crimes have been committed by those in this country illegally.
Past examples of federal prosecution of violent persons who were illegally present in the Eastern District of Tennessee include the cases of Martinez Rubi and Gama Bahena.
- Rubi has been removed from the United States a total of seven times and has twice been prosecuted for illegal reentry in this district. His criminal history includes six prior felony convictions, one of which was for aggravated assault when he threatened to kill a woman at knifepoint. His most recent illegal reentry conviction netted him a 78-month sentence in prison.
- Bahena has a criminal history that includes stabbing his wife in the stomach. He later committed another aggravated assault when he pointed a loaded gun at her and their daughter while threatening to kill them. That conduct was the basis for his federal conviction for possession of a firearm and ammunition by an illegal alien, which resulted in a 65-month sentence in federal prison.
“These two defendants highlight the need for the aggressive stance the Eastern District of Tennessee takes in the prosecution of violent persons who are in the United States illegally. By working closely with our federal, state, and local law enforcement partners, we are able to identify and remove dangerous offenders from our communities,” said United States Attorney J. Douglas Overbey.
Cases are investigated by Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (“ERO”).
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Statement of United States Attorney Joseph D. Brown on Jurisdictions Proclaiming Status as “Sanctuary Cities” from Federal Immigration EnforcementRead the Press Release
SHERMAN, Texas – United States Attorney Joe Brown today applauded the speech of United States Attorney General William Barr to the National Sheriffs’ Association criticizing the state and local governments which have refused to cooperate with federal immigration enforcement actions.
“Attorney General Barr is exactly right on this issue,” said Brown. “Jurisdictions which refuse to turn over criminal aliens are putting politics above public safety and are putting the interests of criminal aliens before those of law-abiding citizens.
https://www.justice.gov/opa/speech/attorney-general-william-p-barr-delivers-remarks-national-sheriffs-association-winter
When federal officers place detainers on offenders, a legal determination has already been made that there is probable cause to believe that the person committed a criminal act. To refuse to honor these detainers can put dangerous people, who are not citizens of this country, back on the streets. Increasingly, we see anti-law enforcement policies releasing dangerous criminals.
Just last week, the United States Customs and Enforcement Agency (ICE) released figures confirming that more than 400 criminals from a single county in California re-offended over the last two years after being released because of California’s sanctuary city policies. The offenses the offenders were charged with after being released included rape, assault with a deadly weapon, child sex offenses, domestic violence, and driving while intoxicated.
https://www.ice.gov/news/releases/unimaginable-more-1500-aliens-ice-detainers-released-orange-county-jail-2019-many-re
In the Eastern District of Texas all of our county and local governments have cooperated with their federal partners in enforcing all of the laws that protect Americans. We have no sanctuary cities in the Eastern District of Texas. We thank the policy makers and law enforcement leaders in the 43 counties that make up our district. We also thank the policy makers of the State of Texas who have clearly indicated their support for immigration enforcement.”
Op Ed: Banning Fentanyl Analogues Is Good Policy for Communities Suffering from the Opioid CrisisRead the Press Release
Yesterday, the President signed into law the “Temporary Reauthorization and Study of the Emergency Scheduling of Fentanyl Analogues Act.” This law is critical to ensuring that law enforcement around the country have the tools they need to fight the deadly opioid epidemic.
According to the Centers for Disease Control (CDC), over 70,000 Americans died of drug overdoses in 2017. Opioids, including the dangerous illicitly-made drug fentanyl, accounted for over 47,600 of those deaths. Preliminary numbers suggest similar results for 2018. Fentanyl is a synthetic opioid 50 times more potent than heroin and up to 100 times more potent than morphine.
Several years ago, drug dealers began mixing fentanyl with heroin to increase the appeal of heroin for users. As the potency increased, so did the number of overdose deaths. Because fentanyl is made in labs using chemicals, its structure is easily manipulated. Drug cartels that manufacture and traffic this poison understand American laws and know how to exploit them. They know that by changing a single molecule in the chemical structure of fentanyl, they have essentially created a new drug that, unlike fentanyl, is not permanently illegal in the United States.
These drugs known as “fentanyl analogues,” do the same thing fentanyl does: creating more addicts and killing more Americans. These analogues can be up to 100 times more potent than fentanyl and 10,000 times more potent than morphine. Fentanyl and its analogues are increasingly being pressed into pill form, causing extreme danger to users who might not know the true nature of the substance.
The Department of Justice noted these trends and, on February 6, 2018, the Drug Enforcement Administration (DEA) issued an emergency temporary two-year order that made all fentanyl analogues illegal. This greatly assisted American law enforcement, including my office, in its fight against the drug cartels and subsequently against the opioids crisis, which is no stranger to Tennesseans.
In 2018, the Eastern District of Tennessee, which covers 41 of 95 counties in the state of Tennessee and approximately 2.5 million people, was one of the 10 hardest hit areas in the United States for drug overdoses and drug overdose deaths. The proximity of Knoxville to the interstates, coming up from Atlanta and down from Detroit, make our district a hotbed for drug activity and trafficking.
According to the Tennessee Department of Health, like much of the nation, over the past five years drug overdose deaths in Tennessee have consistently increased. In 2018 alone, 1,818 Tennesseans died of a drug overdose, and 742 of those deaths involved fentanyl or its analogues. Since DEA’s two-year order was signed, in East Tennessee alone, our Assistant U.S. Attorneys have indicted 25 cases and 110 defendants involving fentanyl. Five of those 25 cases involved fentanyl analogues (20 percent). We have alleged in these indictments that nine people have died as a result of ingesting these dangerous substances.
Because of the impact that the emergency order has had on preventing analogues in our communities, Congress recently enacted the “Temporary Reauthorization and Study of the Emergency Scheduling of Fentanyl Analogues Act,” providing a 15-month extension of DEA’s original order, which President Trump signed into law yesterday. The temporary extension, which expires on May 6, 2021, will continue to help us in our efforts to combat this epidemic; but to ensure fentanyl analogues are never able to devastate communities like fentanyl has, we hope Congress will eventually pass permanent legislation to make these substances illegal to help the people of Tennessee and this nation.
Greeneville Man Sentenced for Federal Gun OffenseRead the Press Release
Greeneville, Tenn. – On February 3, 2020, Brandon David Meacham, 37, of Kenosha, Wisconsin, was sentenced by the Honorable J. Ronnie Greer, in the United States District Court for the Eastern District of Tennessee at Greeneville.
As part of the plea agreement, Meacham pled guilty to one count of being a convicted felon in the unlawful possession of a firearm. Meacham was sentenced to 63 months in the Federal Bureau of Prisons, followed by three years’ supervised release.
Meacham was arrested in 2018, following a traffic stop by a Washington County Sheriff’s deputy. Meacham, who had been convicted of armed robbery in Wisconsin, was found to be in possession of a loaded .380 caliber, semi-automatic pistol.
The prosecution resulted from an investigation by the Washington County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Assistant United States Attorney J. Gregory Bowman represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
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U. S. Settles False Claims Act Allegations Against Southeastern Retina AssociatesRead the Press Release
Knoxville, Tenn. – Southeastern Retina Associates ("SERA") has paid $1.5 million to resolve False Claims Act allegations in the United States District Court for the Eastern District of Tennessee.
As part of the settlement, SERA entered into a five-year Corporate Integrity Agreement (CIA) with the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG), requiring the implementation of a risk assessment and internal review process designed to identify and address evolving compliance risks. The CIA requires training, auditing and monitoring designed to address the conduct at issue in the case. Southeastern Retina Associates has over 250 employees in offices throughout eastern and middle Tennessee, northern Georgia, and southwestern Virginia.
The settlement resolves allegations that, from 2009 through 2016, the practice improperly used the Modifier 25 billing code to charge Medicare and Medicaid for exams that were not separately billable from other procedures performed on the same day. The settlement also resolves allegations that certain Medicare and Medicaid billings during the same period included charges for exams at higher levels than appropriate.
"It is important that medical providers present appropriate and reasonable charges for services that are paid for by the taxpayers. This office remains committed to ensuring that publicly funded healthcare systems are not charged more than what the billing rules prescribe," said U.S. Attorney J. Douglas Overbey.
"Healthcare fraud and abuse impacts every American. The critical resources that are removed from our health care system due to exploitation results in higher health care cost for everyone. The FBI will continue to work closely with federal, state, and local partners to investigate those who abuse federally funded healthcare programs," said Joseph E. Carrico, Special Agent in Charge of the Knoxville Division of the Federal Bureau of Investigation.
"We will continue to pursue doctors that use deceptive billing practices to make more money. These types of schemes cost federal health care programs millions of dollars and cheat taxpayers in the process," said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta.
"The Department of Veterans Affairs Office of Inspector General is committed to working with our law enforcement partners to identify and investigate those who defraud or abuse VA’s healthcare system. This settlement shows that VA-OIG will continue to aggressively investigate anyone who overbills VA programs intended to care for our nation’s veterans," said Kim R. Lampkin’s, Special Agent in Charge of VA-OIG’s Mid-Atlantic Field Office.
"False claims that overbill the federal healthcare programs undermine the integrity of the Federal Employees Health Benefits program and increase the cost of medical care for us all. OPM-OIG thanks the U. S. Attorney’s Office and our law enforcement partners. Today’s settlement demonstrates joint commitment to investigating and prosecuting fraudulent billing practices that waste taxpayer dollars," said Thomas W. South, Deputy Assistant Inspector General, Office of the Inspector General (OPM-OIG).
This investigation was the result of a coordinated effort by the U.S. Attorney’s Office for the Eastern District of Tennessee, U.S. Department of Health and Human Services Office of Inspector General, U.S. Office of Personnel Management, Knoxville Division of the FBI, and the Tennessee Attorney General’s Office. The investigation was prompted by a lawsuit filed in 2015 under the qui tam or "whistleblower" provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The relators share of the recovery in this case will be $270,000.
Assistant United States Attorneys Jessica Sievert, Jeremy Dykes, and Rob McConkey, represented the United States.
The claims settled by this agreement are allegations only; there has been no determination of liability.
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Child Predator Sentenced to 262 Months for Production and Possession of Child PornographyRead the Press Release
Knoxville, Tenn. - On February 4, 2020, George Robert Everhart, 31, of Maryville, was sentenced by the Honorable Thomas A. Varlan, in the United States District Court at Knoxville. Everhart will serve 262 months in federal prison for producing and possessing child pornography. Following his imprisonment, Everhart will be supervised by the United States Probation Office for 10 years and will be required to register with the state sex offender registry in any state in which he lives, works, or attends school.
The investigation began when a tip came in from the National Center for Missing and Exploited Children. Law enforcement quickly identified Everhart and insured that the victims were no longer in peril. Through the execution of federal search warrants, law enforcement discovered child pornography on Everhart’s phone, computer, and in his online file storage account.
“I want to commend the dedicated investigators and forensic examiners of the Knoxville Police Department who immediately took action to protect children from the defendant.” said J. Douglas Overbey, U.S. Attorney for the Eastern District of Tennessee. U.S. Attorney Overbey emphasized, “We will continue to work closely with law enforcement to pursue child sexual predators and vigorously prosecute them and protect our children from them.”
The case was investigated by the Knoxville Police Department’s Internet Crimes Against Children Unit, with assistance from the Maryville Police Department.
Assistant U.S. Attorney Matthew T. Morris represented the United States.
This case was brought forward as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about PSC, please visit www.projectsafechildhood.gov
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Greeneville Man Sentenced for Conspiracy to Distribute Methamphetamine and Money LaunderingRead the Press Release
Greeneville, Tenn. – On January 24, 2020, Juan Moreno-Pantiga, 30, of Bulls Gap, was sentenced before the Honorable Clifton L. Corker, in the United States District Court for the Eastern District of Tennessee at Greeneville.
Moreno-Pantiga plead guilty to an indictment charging him with conspiracy to distribute methamphetamine and conspiracy to commit money laundering. Moreno-Pantiga was sentenced to 262 months in prison and will be deported to Mexico after completion of his term of incarceration.
Moreno-Pantiga operated a used car lot from which he and his associates sold methamphetamine and laundered drug proceeds. Additionally, Moreno-Pantiga owned a stash-house where law enforcement recovered over 3 kilograms of methamphetamine, 450 grams of cocaine, 41 kilograms of marijuana, and five firearms during the execution of a search warrant. Moreno-Pantiga admitted he was part of a methamphetamine distribution network responsible for trafficking multiple kilograms of methamphetamine supplied by large trans-national criminal organizations. Moreno-Pantiga and 23 others were charged in an indictment returned by a federal grand jury on January 8, 2019. All defendants have plead guilty.
The multi-agency investigation included Greene County Sheriff’s Department, Greeneville Police Department, Hawkins County Sheriff’s Department, Hamblen County Sheriff’s Department, Jefferson County Sheriff’s Department, Washington County Sheriff’s Department, Tusculum Police Department, Baileyton Police Department, Elizabethton Police Department, Third Judicial Drug Task Force, Fourth Judicial Drug Task Force, Tennessee Bureau of Investigation (TBI), Tennessee National Guard Counter-drug Task Force, Tennessee Highway Patrol, United States Marshal Service, Homeland Security Investigations (HSI), Drug Enforcement Administration (DEA), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Federal Bureau of Investigation (FBI)..
Assistant U.S. Attorneys J. Christian Lampe and Andrew C. Parker represented the United States.
The investigation is a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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Mexican National Sentenced for Transporting Illegal AliensRead the Press Release
BEAUMONT, Texas – A 46-year-old Mexican national illegally in the United States has been sentenced to federal prison for immigration violations in the Eastern District of Texas announced U.S. Attorney Joseph D. Brown today.
Joel Sanchez-Guzman pleaded guilty on June 4, 2019, to transporting illegal aliens and illegally reentering the United States after having been deported. Sanchez-Guzman was sentenced to 30 months in federal prison today by U.S. District Judge Ron Clark. He was also ordered to submit to forfeiture of $1,300.
According to information presented in court, on Jan. 25, 2019, Sanchez-Guzman was stopped for a traffic violation by Nacogdoches Police on U.S. 59. During the traffic stop, Sanchez-Guzman told law enforcement officers that he had received approximately $900 to transport six adult male passengers from Houston, Texas to Atlanta, Georgia. . Sanchez-Guzman was released at the time pending further investigation.
On Feb. 16, 2019, Sanchez-Guzman was again stopped by Nacogdoches Police on U.S. 59 for a traffic violation and at the time was transporting eight individuals he knew to be illegally in the United States. Sanchez-Guzman was arrested for this offense as well as for the January incident. He was indicted by a federal grand jury on Mar. 6, 2019, and charged with smuggling illegal aliens and reentry as a previously deported alien.
This case was investigated by Homeland Security Investigations/Immigration and Customs Enforcement HSI/ICE and the Nacogdoches Police Department and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
Joshua Small and Joni Amber Johnson Sentenced for Kidnapping Elderly VictimsRead the Press Release
Knoxville, Tennessee – On January 28, 2020, Joshua Small, 52, and Joni Amber Johnson, 36, both of Princeton, West Virginia, were sentenced by the Honorable Chief Judge Pamela Reeves in the United States Courthouse in Knoxville for their roles in a conspiracy to assault, kidnap, and rob elderly victims. Small received 30 years in federal prison with 5 years of supervised release. Johnson received 25 years in federal prison with 5 years of supervised release. Both Small and Johnson were also ordered to pay over $8,000 in restitution.
From May 2018 to July 2018, Small and Johnson went on a spree of armed home invasions and kidnappings throughout West Virginia, Virginia, and East Tennessee. Small and Johnson targeted the homes of elderly victims, forcing entry into their residences, holding victims at gunpoint, and binding their hands and feet. Small and Johnson would then ransack the homes, stealing jewelry, valuables, heirlooms, and cash.
The home invasions were noteworthy for the egregious amount of violence directed towards the victims. In a home invasion in Dandridge, Tennessee, Small struck a 72-year-old male victim in the neck, bound his hands and feet with power cords, and shoved him down a flight of stairs into the basement. During a home invasion in Princeton, West Virginia, the two surreptitiously entered the home of an 88-year-old woman, holding her at gunpoint and ripping off her Life Alert necklace. Small then struck her in the head, knocking her unconscious and causing a substantial injury before fleeing the home with her pocket book. In Jefferson County, Tennessee, Small and Johnson forced their way into an 81-year-old man’s home, struck him in the head and neck, bound his hands and feet, gagged him, robbed him of $3,200 and fled. In total, Small and Johnson attacked, terrorized, kidnapped and robbed seven elderly victims.
“The Department of Justice will always stand firmly against those who seek to terrorize, take advantage of, and abuse our country’s citizens. While this case is noteworthy for the extreme violence and the large geographical area of the crime spree, we know that this is not an isolated incident. Preventing further crimes such as those committed by Joshua Small and Joni Amber Johnson is one of our greatest priorities,” said U.S. Attorney J. Douglas Overbey.
"This investigation demonstrates that the victimization of our elderly citizens will not be tolerated by law enforcement. These offenses were vicious and had significant physical and mental impact on their victims. I am proud of the diligent work of Special Agent Leatham along with our local and federal law enforcement partners who worked to identify, arrest, and bring to justice these predators so they can’t victimize anyone again,” said FBI Special Agent in Charge Joe Carrico.
Assistant United States Attorneys Alan Kirk and Kevin Quencer represented the United States at trial and sentencing.
Members of the public are urged to reach out to their local, state, and federal law enforcement offices to report instances of elder abuse, fraud, or victimization in their communities. The Department of Justice remains focused on protecting our nation’s most vulnerable citizens, and we rely upon public assistance to help identify and pursue cases involving elderly victims.
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Federal Jury Convicts Charles Edward Mason of Gun and Drug ChargesRead the Press Release
Knoxville, Tenn. – Following a four-day trial in the United States District Court at Knoxville, a jury convicted Charles Edward Mason, 53, of Clinton, Tennessee. Evidence presented at trial showed Mason was in possession of firearms and ammunition as a convicted felon, possessed with intent to distribute 5 grams or more of methamphetamine, brandished firearms in furtherance of drug trafficking, and possessed firearms in furtherance of drug trafficking.
Sentencing is set for May 20, 2020, at 10:00 a.m., in the United States District Court for the Eastern District of Tennessee at Knoxville. Mason faces a sentence of up to life in prison.
On April 24, 2019, officers responded to a 911 call alleging that Mason had threatened a woman with a handgun. During the initial encounter with Mason, officers discovered that Mason had two handguns and over 23 grams of methamphetamine. Mason subsequently brandished a third handgun, a revolver, and attempted to shoot the officers at the scene. The defendant pulled the trigger multiple times, however the gun did not fire because the hammer was caught on Mason’s t-shirt. After a short struggle, officers retrieved the firearm from Mason before taking him into custody. The female complainant and a man who was on the scene before officers arrived testified at trial that Mason threated their lives while holding a handgun, because Mason believed they stole methamphetamine from him.
In 2010, the defendant was previously convicted of reckless homicide in Anderson County, Tennessee.
“The combination of firearms possessed by a convicted felon and the distribution of illegal drugs is an inherent danger to our communities. The U.S. Attorney’s Office will continue to work together with law enforcement to prosecute federal offenses relating to the unlawful distribution of illegal drugs,” said U.S. Attorney J. Douglas Overbey.
“ATF’s Crime Gun Intelligence, as part of Project Guardian, is focused on providing a safe environment to the communities that are affected by violent crime,” said ATF Special Agent in Charge Marcus Watson.
The law enforcement agencies taking part in the joint investigation which lead to the indictment and subsequent conviction of Mason included the Anderson County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Knoxville Field Office.
Assistant United States Attorneys LaToyia Carpenter and Brent Jones represented the United States.
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Media Advisory: Pair of West Virginians to Be Sentenced for Kidnapping Elderly VictimsRead the Press Release
Knoxville, Tennessee – The sentencing hearing of Joshua Small, 52, and Joni Amber Johnson, 36, both of Princeton, West Virginia, for their roles in a conspiracy to kidnap elderly victims and rob them, will continue Tuesday morning, January 28, 2020, at 9:30 a.m. before the Honorable Chief Judge Pamela Reeves in the United States Courthouse in Knoxville.
Immediately following the conclusion of the sentencing hearing in this matter, U.S. Attorney J. Douglas Overbey and FBI Special Agent in Charge Joseph Carrico will make a statement and take questions from the media outside the Courthouse.
Assistant United States Attorneys Alan Kirk and Kevin Quencer represented the United States at trial and sentencing.
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Press Conference to Follow Sentencing of Pair from West Virginia in Kidnapping of Elderly VictimsRead the Press Release
Knoxville, Tenn. – Joshua Small, 52, and Joni Amber Johnson, 36, both of Princeton, West Virginia, are scheduled for sentencing on January 27, 2020, for their roles in a conspiracy to assault, kidnap and rob elderly victims The sentencing hearing is scheduled for 10:00 a.m. before the Honorable Chief Judge Pamela Reeves in the United States Courthouse in Knoxville.
From May 2018 to July 2018, Small and Johnson went on a spree of armed home invasions and kidnappings throughout West Virginia, Virginia, and East Tennessee. Small and Johnson targeted the homes of elderly victims, forcing entry into their residences, holding victims at gunpoint, and binding their hands and feet. Small and Johnson would then ransack the homes, stealing jewelry, valuables, heirlooms, and cash.
The home invasions were noteworthy for the egregious amount of violence directed towards the victims. In a home invasion in Dandridge, Tennessee, Small struck a 72-year-old male victim in the neck, bound his hands and feet with power cords, and shoved him down a flight of stairs into the basement. During a home invasion in Princeton, West Virginia, the two surreptitiously entered the home of an 88-year-old woman, holding her at gunpoint and ripping off her Life Alert necklace. Small then struck her in the head, knocking her unconscious and causing a substantial injury before fleeing the home with her pocket book. In Jefferson County, Tennessee, Small and Johnson forced their way into an 81-year-old man’s home, struck him in the head and neck, bound his hands and feet, gagged him, robbed him of $3,200 and fled. In total, Small and Johnson attacked, terrorized, kidnapped and robbed seven elderly victims.
Immediately following the sentencing hearing in this matter, U.S. Attorney J. Douglas Overbey and FBI Special Agent in Charge Joseph Carrico will make a statement and take questions from the media outside the Courthouse.
Assistant United States Attorneys Alan Kirk and Kevin Quencer represented the United States at trial and will continue to do so at sentencing.
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Family Physician Pays $285,000 to Settle False Claims Act Allegations of Billing Services at Inflated RateRead the Press Release
Knoxville, Tenn. – Family physician Dr. Chang-Wen Chen and his practice Chang-Wen Chen, M.D., P.C. paid $285,000 to resolve allegations that they violated the False Claims Act by improperly charging government health care programs the physician’s rate for services that were provided by nurse practitioners. The allegations challenged billings submitted to Medicare, Medicaid (“TennCare”) and TRICARE from 2013 through 2019.
Medicare and TennCare reimburse at the higher physician rate for services provided by nurse practitioners or other non-physician providers when the services are rendered “incident-to” a physician’s services, but only if the physician provides direct supervision. TRICARE always pays the reduced rate for services rendered by non-physician providers regardless of whether a physician supervises. The government alleged that Dr. Chen’s practice unlawfully billed government payors at the physician rate even when services were rendered by unsupervised nurse practitioners.
Under the False Claims Act, any person who presents false claims for payment to the United States is liable for three times the damages the government incurs as a result of the false claims and penalties ranging from $5,000 to $22,363 per violation, depending on when the violations occurred.
“False billing practices contribute to the rising cost of health care in our country, and cheat taxpayers out of billions of dollars each year,” said U.S. Attorney J. Douglas Overbey. “This settlement demonstrates the continued commitment of the United States Attorney’s Office to protecting the integrity of our federal health care programs.”
“Medicare and other government health payment rules on non-physician providers are clear. While nurse practitioners may provide excellent care, billing their services at an inflated rate cheats taxpayers who are paying for these vital services,” said Derrick Jackson, Special Agent in Charge of the Office of Inspector General of the U.S. Department of Health and Human Services. “Working with our law enforcement partners, we will continue investigating threats to federally funded health care programs.”
“I applaud the Department of Justice and the U.S. Attorney for the Eastern District of Tennessee for their continued efforts to hold health care providers accountable to the American taxpayer," said Army Lt. Gen. Ronald Place, director of the Defense Health Agency. "The efforts of the Department of Justice to safeguard the health care benefit for our service members, veterans and their families is commendable. The Defense Health Agency continues to work closely with the Justice Department, and other state and federal agencies to investigate all those who participated in fraudulent practices.”
This investigation was a coordinated effort by the U.S. Attorney’s Office for the Eastern District of Tennessee; the Tennessee Attorney General’s Office; the U.S. Department of Health and Human Services, Office of Inspector General; and the Tennessee Bureau of Investigation, Medicaid Fraud Control Unit. The investigation was prompted by a lawsuit filed in 2015 by a former nurse practitioner at the practice, under the qui tam or “whistleblower” provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The relators share of the recovery in this case is $51,300.
The case is captioned United States and State of Tennessee ex rel. Forester v. Chang-Wen Chen, M.D. and Chang-Wen Chen, M.D., P.C., Case No. 3:18-cv-51 (E.D. Tenn.).
Assistant United States Attorneys L. Margaret Harker, Jeremy S. Dykes, and Jessica Sievert represented the United States.
The claims settled by this agreement are allegations only; there has been no determination of liability.
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Shelbyville Resident Sentenced to 50 Years for Sexual Exploitation of A Child and Possession of Child PornographyRead the Press Release
Chattanooga, Tenn. – On January 15, 2020, Brad Anthony Majors, 37, of Shelbyville, was sentenced by the Honorable Curtis L. Collier in the United States District Court for the Eastern District of Tennessee at Chattanooga.
In May 2019, Majors agreed to plead guilty to an indictment, charging him with one count of exploitation of a child in violation of 18 U.S.C. § 2251(a); and one count of possession of child pornography in violation of 18 U.S.C. 2252A(a)(5)(B) and 2252A(b)(2). On January 15, 2020, Majors was sentenced to 600 months in prison, followed by 15 years’ supervised release. Majors will be required to register with state sex offender registries and comply with special sex offender conditions during his supervised release.
In November 2018, after receiving a report of abuse from the mother of Majors’ 8-year-old biological child, authorities investigated and determined that Majors was sexually abusing his child. During questioning, Majors admitted to recording sexually explicit acts between himself and the child, and that he had taken approximately 40 sexually explicit videos and images of such conduct. A search of Majors phone revealed four sexually explicit videos of Majors and the child, including numerous saved images of child pornography depicting known and unknown victims throughout the world that Majors obtained from online sources. Majors also admitted to trading at least one of these images online with an unknown person in exchange for images of child pornography.
“It is evident that offenders are finding new and increasingly disturbing ways to victimize and exploit vulnerable child victims. Cases such as this, however, demonstrate the Department of Justice’s dedication to protecting these vulnerable children and punishing those that seek to cause them harm. No matter who the offenders are, they will be met with significant consequences. With the combined effort of the Project Safe Childhood Initiative and our federal, state, and local law enforcement partnerships, we will find these criminals and hold them accountable for their crimes against children,” said U. S. Attorney J. Douglas Overbey.
"The sexual exploitation of children is an especially heinous crime. Unfortunately, victimization of children is a growing issue in our country and one the FBI will not tolerate. The dedicated teamwork between our agents and the Shelbyville Police Department ensured there is one less predator on the street victimizing the most innocent and venerable members of our community,” said Joseph E. Carrico, Special Agent in Charge of the Knoxville Division of the Federal Bureau of Investigation.
The criminal indictment resulted from an investigation led by the U. S. Attorney’s Offices, the Criminal Division’s Child Exploitation and Obscenity Section, the U. S. Marshal’s Office, Shelbyville Police Department and Special Agent Matthew Acker with Federal Bureau of Investigation (FBI).
Assistant United States Attorney James T. Brooks represented the United States.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006, by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U. S. Attorney’s Offices, the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshal’s federal, state, and local agencies. All resources will locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, visit www.justice.gov/psc. Information about internet safety education, please visit www.justice.gov/psc/resources.html and click on the tab "resources.”
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Two Sentenced to Federal Prison for Conspiracy to Distribute Crack CocaineRead the Press Release
Greeneville, Tenn. – On January 13, 2020, Alex Lorenzo Robinson, 38, of Elizabethton, and formerly of Conway, South Carolina, was sentenced by the Honorable J. Ronnie Greer, Sr. in the United States District Court for the Eastern District of Tennessee at Greeneville. As part of the plea agreement, Robinson agreed to plead guilty to conspiring to distribute crack cocaine and was sentenced to 15 years in federal prison. Co-conspirator Kayla Leann Cox, 22, with residences in Elizabethton and Kingsport, was sentenced to five years in federal prison for her role in the same conspiracy in October 2019.
The conviction of Robinson was the result of an investigation by Tennessee Bureau Investigation (TBI) during 2019. After making numerous drug buys from Robinson and obtaining a federal indictment and search warrants, TBI, DEA, Carter County Sheriff's Department (CCSD), and the Elizabethton Police Department (EPD) executed a search warrant at the residence of Robinson. CCSD Special Weapons and Tactics Team (SWAT) approached the residence, knocked and announced their presence, and breached the front door and entered the residence. Robinson and Cox were located within the residence, as well as two minors. Agents recovered a handgun located next to Cox, multiple rifles underneath the bed and a ballistic vest found at the foot of the bed. During the search of the residence, agents discovered 293.01 grams of cocaine within a vacuum-sealed bag, 1,492.41 grams of marijuana, 55.93 grams of crack cocaine, 81 Fentanyl/Acetyl fentanyl tablets and multiple firearms that included a .410 Taurus 'Judge' that had been reported stolen. Robinson was arrested on a federal warrant based on a prior indictment.
On the same morning, TBI, DEA, Kingsport Police Department (KPD), 2nd Judicial District Drug Task Force (DTF), and Tennessee Highway Patrol (THP) executed a second search warrant at another residence of Robinson in Kingsport, TN. During the search, agents discovered several items of contraband that included several firearms, marijuana, and powder cocaine.
This multi-agency investigation included TBI, DEA, Carter County Sheriff’s Department, Kingsport Police Department, Elizabethton Police Department, Sullivan County Sheriff’s Department, 2nd Judicial District Drug Task Force, and the Tennessee Highway Patrol.
Assistant U.S. Attorneys Robert Reeves and Todd Martin represented the United States.
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Convicted Sex Offender Sentenced for Distribution of Child Pornography to AnotherRead the Press Release
Chattanooga, Tenn. – On January 10, 2020, Matthew John Jurado, 52, currently of Tracy, California, was sentenced by the Honorable Travis R. McDonough, in the United States District Court for the Eastern District of Tennessee at Chattanooga. Mr. Jurado was sentenced to 120 months in prison, followed by five years’ supervised release.
As part of the written plea agreement, Jurado agreed to plead guilty to count two of the indictment by a Federal Grand Jury, where he was charged with causing another person to possess child pornography in violation of 18 U.S.C. § 2252(a)(4)(B) and 2(b). Jurado is a registered sex offender with a prior conviction for child pornography.
In February 2019, the defendant distributed numerous images of child pornography throughout the world from a coffee shop located in Tracy, California. The defendant’s activities and identity were discovered by a member of the Chattanooga Crimes Against Children Task Force, when the defendant distributed child pornography to an undercover Task Force officer. Furthermore, members of the Task Force arrested a second individual who had traveled to Chattanooga with the intent to engage in sex with a minor. Law enforcement agents seized the cell phone belonging to that individual, and found that it contained child pornography that had been sent by the defendant.
“Information sharing among local and federal agencies across the country can bring dangerous criminals to justice. Every child deserves to grow up without the fear, humiliation, and trauma of being the victim of sexual exploitation. If you engage in production of child pornography or dissemination of child pornography in the Eastern District of Tennessee, you will be caught and serve significant time in prison. The U.S. Attorney’s Office will continue to aggressively pursue the predators in this world who seek to abuse the most innocent among us,” said J. Douglas Overbey.
“Those who prey on children, whether they live in Tennessee or around the world, will be found, will be investigated and will be prosecuted. The FBI along with our local, state, and federal partners remain committed to protect our community and hold those accountable whose desire is to harm, abuse, and victimize our most precious resource, our children,” said FBI’s Special Agent in Charge Joe Carrico.
The criminal indictment and plea agreement are the result of an ongoing investigation by the Chattanooga Crimes Against Children Task Force, which consists of agents from the Federal Bureau of Investigation (FBI), Homeland Security Investigations (HIS), the Hamilton County Sheriff’s Department, and the Chattanooga Police Department. This investigation was led by Special Agent Samuel Moore with the Federal Bureau of Investigation.
Assistant United States Attorney James T. Brooks represented the United States.
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U.S. Attorney's Office Collects over 11M in Criminal and Civil Actions for Fiscal Year 2019Read the Press Release
Knoxville, Tenn - U.S. Attorney J. Douglas Overbey announced today that the Eastern District of Tennessee collected $11,138,905.90 in criminal and civil actions in Fiscal Year 2019. Of this amount, $9,007,943.97 was collected in criminal actions and $2,130,961.93 was collected in civil actions.
Additionally, the Eastern District of Tennessee collaborated with other U.S. Attorneys’ Offices and components of the Department of Justice to collect an additional $35,218,323.69 in cases pursued jointly by these offices. Of this amount, $59,667.48 was collected in criminal actions and $35,158,656.21 was collected in civil actions.
“Criminal and civil monetary penalties provide additional deterrence to those who seek to violate federal laws. The U.S. Attorney’s Office continues to strive towards insuring that ill-gotten gains are collected and returned to the federal coffers for reimbursement for victims of crimes. Additionally, our stringent enforcement of civil and criminal monetary penalties provide an additional level of punishment for the offenders,” added U.S. Attorney J. Douglas Overbey.
The U.S. Attorneys’ Offices, along with the Department of Justice litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. Restitution is paid to the victim, and criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorneys’ office of the Eastern District of Tennessee, working with partner agencies and divisions from the FBI, IRS and other law enforcement agencies, collected $3,527,831 in asset forfeiture actions in FY 2019. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for various law enforcement uses.
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Former Greeneville man pleads guilty to embezzlement schemeRead the Press Release
Greeneville, Tenn. – On December 19, 2019, Shain A. Chappell, 48, currently of Helena, Montana, entered a guilty plea to one count of wire fraud and one count of filing a false tax return in the United States District Court for the Eastern District of Tennessee at Greeneville. Sentencing has been set for May 1, 2020, at 9:00 a.m., in United States District Court in Greeneville.
Chappell faces a term of up to 23 years in Federal prison, $500,000 in fines, and supervised release of three years.
As part of the written plea agreement, Chappell waived an indictment by a Federal Grand Jury and agreed to plead guilty to the aforementioned charges. Chappell admitted to using his position as controller to embezzle over $1 million from his former employer, Greentech Environmental, LLC, in Johnson City. Chappell began employment as controller in October 2015, and by July 2017, had devised a scheme where Greentech would falsely pay for his personal credit card purchases by showing the payments as purchases of inventory in Greentech’s books and records.
During the two year period, Chappell embezzled money by causing Greentech to pay for lavish lifestyle expenditures. Chappell’s luxury purchases included clothing, shoes, jewelry, meals, vacations, sports memorabilia, athletic and concert tickets, firearms, a Harley Davidson motorcycle, a hot tub, and significant charitable contributions. In addition to stealing from Greentech, Chappell filed false tax returns for calendar years 2017 and 2018 that failed to include income from the money stolen from his employer, resulting in additional income tax owed of over $350,000.
“The federal law enforcement agencies are to be congratulated for their detection, investigation and successful prosecution of this individual. The devastation caused by economic white collar crimes from embezzlement negatively impacts many people. Our office will continue in our efforts to uncover these crimes and prosecute the individuals responsible” said United States Attorney J. Douglas Overbey.
"The FBI is committed to investigate and pursue those who commit fraud for personal gain and we take that responsibility very seriously. We along with our law enforcement partners will continue to seek justice and hold accountable those who use illegal means and criminal behavior to take advantage of others” said Special Agent in Charge Joseph E. Carrico.
“IRS Criminal Investigation agents play an important role in fraud and embezzlement investigations due to complex financial transactions that can take time to unravel, “said Matthew D. Line, Special Agent in Charge, Internal Revenue Service, Charlotte Field Office. “Mr. Chappell abused his position as controller and stole from his employer by embezzling company funds for personal gain. In addition to cheating his employer, Mr. Chappell hid these gains from the IRS and cheated taxpayers by failing to pay taxes on this ill-gotten income.”
The criminal information and plea agreement are the result of an ongoing investigation by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigations.
Mac D. Heavener, III, Assistant United States Attorney represented the United States.
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Justice Department awards more than $333 million to fight opioid crisisRead the Press Release
$1.1 Million will support efforts to combat drugs and crime in the Eastern District of Tennessee.
Knoxville, Tenn. – The Justice Department’s Office of Justice Programs announced awards of more than $333 million to help communities affected by the opioid crisis. $1.1M will help public safety and public health professionals in the Eastern District of Tennessee combat substance abuse and respond effectively to overdoses. OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan made the announcement during a visit with local, state and federal officials in West Virginia, one of the states hardest hit by the epidemic.
“The opioid crisis has destroyed far too many lives and left too many Americans feeling helpless and hopeless,” said PDAAG Sullivan. “This epidemic—the most deadly in our nation’s history—is introducing new dangers and loading public health responsibilities onto the public safety duties of our law enforcement officers. The Department of Justice is here to support them during this unprecedented and extremely challenging time.”
With more than 130 people dying from opioid-related overdoses every day, the Department of Justice has made fighting addiction to opioids—including heroin and fentanyl—a national priority. The Trump Administration is providing critical funding for a wide range of activities—from preventive services and comprehensive treatment to recovery assistance, forensic science services and research—to help save lives and break the cycle of addiction and crime.
“As the opioid crisis continues, cheaper and more powerful opioid drugs, such as fentanyl, are increasingly being sought out by those who are addicted to prescription opioids. These fentanyl drugs are especially deadly, whether taken alone or with other narcotics such as methamphetamine. We will continue to work with local, state, and federal leaders to help educate the public regarding the dangers involved with the improper use and abuse of these dangerous substances,” said United States Attorney J. Douglas Overbey.
“The opioid crisis is a major issue in East Tennessee. We appreciate the issuance of this grant and plan to use it to reduce opioid abuse and for treatment and recovery programs in Sevier County,” said Sevier Mayor Larry Waters.
“KLF is excited to work with the Department of Justice to continue to make an impact against the opioid crisis in E.TN. With this grant award, we will invest in at risk youth through education that equips their mentors and caregivers on how to prevent opioid misuse. In order to make a large, efficient and effective impact, we have developed and launched a multi-agency collaborative name Knoxville Area Mentoring Initiative that includes KLF’s Amachi Knoxville, Big Brother Big Sisters of East Tennessee, Girls on the Run of Greater Knoxville, The Joy of Music School and YMCA of East Tennessee. Working together we can provide the tools necessary for our young people to stand strong,” said Chris Martin, President of Knoxville Leadership Foundation.
The awards will support an array of activities designed to reduce the harm inflicted by these dangerous drugs. Grants will help law enforcement officers, emergency responders and treatment professionals coordinate their response to overdoses. Funds will also provide services for children and youth affected by the crisis and will support the nationwide network of drug and treatment courts. Other awards will address prescription drug abuse, expand the capacity of forensic labs and support opioid-related research.
The following awards were made to organizations in the Eastern District of Tennessee:
Sevier County Government - $600,000
Knoxville Leadership Foundation - $500,000Information about the programs and awards announced are available here. For more information about OJP awards, visit the OJP Awards Data webpage.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training and technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
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Imposter nurse pleads guilty to wire fraud, health care fraud and identity theftRead the Press Release
Greeneville, Tenn. – On December 12, 2019, Misty Dawn Bacon, 44, of Morristown, entered a guilty plea to one count of wire fraud, one count of health care fraud, and one count of identity theft in the United States District Court for the Eastern District of Tennessee at Greeneville. Sentencing has been set for April 3, 2020, at 1:30 p.m., in United States District Court in Greeneville.
Bacon faces up to 45 years in Federal prison, fines of up to $750,000, and restitution that could exceed $750,000.
As part of the written plea agreement, Bacon, a convicted felon, admitted to providing fraudulent information on job applications, with the intent to deceive prospective employers by using the registered nurse license numbers of others to gain employment. Bacon posed as a registered nurse, despite having neither a nursing degree nor nursing license from the Tennessee Department of Health and no nursing experience. Through this fraudulent scheme, Bacon was hired by at least eight health care providers between September 2012 and November 2018. Over the six-year period, Bacon worked in a variety of medical settings, including nursing homes, rehabilitation and assisted living facilities, a doctor’s office, and home health agencies.
While posing as a nurse, Bacon had access and rendered medical care to numerous patients, dispensing medications, obtaining invasive access to patient’s bodies, and gaining access to patients’ sensitive and private medical information.
Additionally, as a purported registered nurse, Bacon made numerous false entries in patients’ medical records and submitted false claims to public and private health care benefit programs. Two of her employers, voluntarily repaid health care benefit programs a combined sum of over $500,000 for claims submitted upon learning of Bacon’s imposter status. As part of her written plea agreement, Bacon agreed to waive her right to grand jury indictment and proceed by criminal information, which includes the aforementioned charges.
“This defendant created a substantial danger to public health through her lengthy criminal scheme. Anyone who fraudulently poses as a licensed professional will be vigorously prosecuted by this office and an appropriate punishment will be sought,” added United States Attorney J. Douglas Overbey. “Our office will bring the full measure of the law against those who attempt to take this sort of dangerous and unlawful advantage of persons needing appropriate medical treatment from duly licensed health care professionals.”
“Posing as a medical professional and putting the lives of innocent patients at risk is not acceptable,” said TBI Director David Rausch. “Our Medicaid Fraud Control Division remains committed to working with our federal partners to ensure healthcare fraud and identity theft cases like this one are addressed and investigated thoroughly.”
The criminal information is the result of an ongoing investigation by the Tennessee Bureau of Investigation, the Tennessee Department of Health, and the Jefferson City Police Department.
Mac D. Heavener, III, Assistant United States Attorney, represented the United States.
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Knoxville resident pleads guilty to wire fraud and money laundering schemeRead the Press Release
Knoxville, Tenn. – On November 25, 2019, Christina Erin Myers, 37, of Lenoir City, entered a guilty plea to one count of wire fraud and one count of money laundering in the United States District Court for the Eastern District of Tennessee.
Myers faces a term of 20 years in prison, potential fines of up to $750,000, and the obligation of paying more than $405,000 in restitution to her victims.
As part of the plea agreement filed with the court, the defendant admitted to engaging in a scheme to defraud elderly individuals by diverting funds that victims had provided to her for the purchase of real estate from Tennessee Baptist Adult Homes, through marketing non-existent senior communities, and promoting fictitious investments opportunities.
On October 16, 2018, a six-count indictment, that included the aforementioned charges, was returned against Myers by a federal grand jury in Knoxville. This indictment was the result of an ongoing investigation by the Internal Revenue Service – Criminal Investigation, Lenoir City Police Department and the Tennessee Highway Patrol (THP).
Sentencing has been set for March 25, 2020, at 11:00 a.m., in United States District Court in Knoxville.
"Protecting our seniors has been and will continue to be a top priority of our office. Working with our local, state, and federal law enforcement partners, we will investigate and build cases for successful prosecution of these individuals who choose to victimize some of our most vulnerable citizens. I encourage everyone to speak out and tell someone in authority if they have been a victim of elder abuse or financial fraud. Please do not remain silent,” added U.S. Attorney Overbey.
Frank M. Dale, Jr., Assistant United States Attorney, represented the United States.
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Knoxville resident charged with the distribution of fentanyl and heroin, resulting in overdose deaths of twoRead the Press Release
Knoxville, Tenn. – On October 16, 2019, a federal grand jury in Knoxville returned a two- count indictment against Kevin L. Catlett, 45, of Knoxville, Tennessee.
The indictment, on file with the U.S. District Court, alleges that Kevin L. Catlett distributed a quantity of a mixture and substance containing fentanyl, a Schedule II controlled substance, and heroin, a Schedule I controlled substance that resulted in the death of another on September 6, 2018. The indictment also charged Catlett with distributed a quantity of a mixture and substance containing fentanyl, a Schedule II controlled substance that resulted in the death of another on November 13, 2018.
If convicted of distribution of controlled substances, the defendant faces a maximum term of 20 years imprisonment for each count, and, if the deaths resulted from the use of the substance, the penalty would increase to a mandatory term of imprisonment of at least 20 years and up to life in prison, at least three years of supervised release, a fine of up to $1,000,000, any applicable forfeiture, and a $100 special assessment.
The investigation was conducted by the Monroe County Sheriff’s Office and the Roane County Sheriff’s Office. Leading up to the indictment, these organizations partnered with the Tennessee Bureau of Investigation, Knox County Sheriff’s Office, Appalachian HIDTA’s Drug Related Death Task Force, and the Knox County Regional Forensics Center. Assistant U.S. Attorney Brent N. Jones will represent the United States.
Today, the United States faces an unprecedented drug epidemic. The Centers for Disease Control (CDC) estimates that more than 70,000 Americans died of drug overdoses in 2017. Many of these deaths are attributed to the increased abuse of potent and dangerous synthetic opioids like fentanyl. These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Forces (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
This case has been set for trial on January 7, 2020.
###Oliver Springs Man Sentenced to 262 Months in Prison for Production and Possession of Child PornographyRead the Press Release
[KNOXVILLE, Tennessee] David Tyler Wilson, 25, of Oliver Springs, Tennessee, was sentenced by the Honorable R. Leon Jordan, Senior U.S. District Judge, to serve 262 months in federal prison for producing and possessing child pornography. Following his imprisonment, Wilson will be supervised by the U.S. Probation Office for 15 years and will be required to register with the state sex offender registry in any state in which he lives, works, or attends school.
The investigation began when Wilson sent nude photographs of minors via an online chat application to an undercover FBI agent. The investigation confirmed that Wilson had taken the photographs that he had sent to the undercover FBI agent. “This prosecution represents part of our efforts to work with law enforcement agencies to protect children from persons who produce child pornography for trade on the internet,” said J. Douglas Overbey, U.S. Attorney for the Eastern District of Tennessee. U.S. Attorney Overbey explained, “these predators operate from the shadows of the internet, and find others who are interested in pornographic depictions of children. They use their pornography as online ‘currency’ to trade with others, leading to further sexual abuse of children and the circulation of these terrible depictions of abuse around the world.”
The case was investigated the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew T. Morris represented the United States at in Court.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about PSC, please visit www.projectsafechildhood.gov.
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Attorney General Announces Launch of Project Guardian - A Nationwide Strategic Plan to Reduce Gun ViolenceRead the Press Release
Knoxville, Tenn. – Today, Attorney General William P. Barr announced the launch of Project Guardian, a new initiative designed to reduce gun violence and enforce federal firearms laws across the country. Specifically, Project Guardian focuses on investigating, prosecuting, and preventing gun crimes.
Reducing gun violence and enforcing federal firearms laws have always been among the Department’s highest priorities. In order to develop a new and robust effort to promote and ensure public safety, the Department reviewed and adapted some of the successes of past strategies to curb gun violence. Project Guardian draws on the Department’s earlier achievements, such as the “Triggerlock” program, and it serves as a complementary effort to the success of Project Safe Neighborhoods (PSN). In addition, the initiative emphasizes the importance of using all modern technologies available to law enforcement to promote gun crime intelligence.
“Gun crime remains a pervasive problem in too many communities across America. Today, the Department of Justice is redoubling its commitment to tackling this issue through the launch of Project Guardian,” said Attorney General William P. Barr. “Building on the success of past programs like Triggerlock, Project Guardian will strengthen our efforts to reduce gun violence by allowing the federal government and our state and local partners to better target offenders who use guns in crimes and those who try to buy guns illegally.”
“Enforcement actions and partnerships are a large component of Project Safe Neighborhood. The PSN program brings all levels of law enforcement and communities together, as they serve to reduce violent crimes and make our neighborhoods safer for everyone,” said U.S. Attorney J. Douglas Overbey.
“ATF has a long history of strong partnerships in the law enforcement community,” said Acting Director Regina Lombardo. “Make no mistake, the women and men of ATF remain steadfast to our core mission of getting crime guns off of our streets. ATF and U.S. Attorneys nationwide will leverage these partnerships even further through enhanced community outreach initiatives and coordination with local, state, and tribal law enforcement and prosecutors to cut the pipeline of crime guns from those violent individuals who seek to terrorize our communities. Project Guardian will enhance ATF’s Crime Gun Intelligence, to include identifying, investigating and prosecuting those involved in the straw purchases of firearms, lying on federal firearms transaction forms, and those subject to the mental health prohibition of possessing firearms.”
Project Guardian’s implementation is based on five principles:
- Coordinated Prosecution. Federal prosecutors and law enforcement will coordinate with state, local, and tribal law enforcement and prosecutors to consider potential federal prosecution for new cases involving a defendant who: a) was arrested in possession of a firearm; b) is believed to have used a firearm in committing a crime of violence or drug trafficking crime prosecutable in federal court; or c) is suspected of actively committing violent crime(s) in the community on behalf of a criminal organization.
- Enforcing the Background Check System. United States Attorneys, in consultation with the Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in their district, will create new, or review existing, guidelines for intake and prosecution of federal cases involving false statements (including lie-and-try, lie-and-buy, and straw purchasers) made during the acquisition or attempted acquisition of firearms from Federal Firearms Licensees.
Particular emphasis is placed on individuals convicted of violent felonies or misdemeanor crimes of domestic violence, individuals subject to protective orders, and individuals who are fugitives where the underlying offense is a felony or misdemeanor crime of domestic violence; individuals suspected of involvement in criminal organizations or of providing firearms to criminal organizations; and individuals involved in repeat denials.
- Improved Information Sharing. On a regular basis, and as often as practicable given current technical limitations, ATF will provide to state law enforcement fusion centers a report listing individuals for whom the National Instant Criminal Background Check System (NICS) has issued denials, including the basis for the denial, so that state and local law enforcement can take appropriate steps under their laws.
- Coordinated Response to Mental Health Denials. Each United States Attorney will ensure that whenever there is federal case information regarding individuals who are prohibited from possessing a firearm under the mental health prohibition, such information continues to be entered timely and accurately into the United States Attorneys’ Offices’ case-management system for prompt submission to NICS. ATF should engage in additional outreach to state and local law enforcement on how to use this denial information to better assure public safety.
Additionally, United States Attorneys will consult with relevant district stakeholders to assess feasibility of adopting disruption of early engagement programs to address mental-health-prohibited individuals who attempt to acquire a firearm. United States Attorneys should consider, when appropriate, recommending court-ordered mental health treatment for any sentences issued to individuals prohibited based on mental health.
- Crime Gun Intelligence Coordination. Federal, state, local, and tribal prosecutors and law enforcement will work together to ensure effective use of the ATF’s Crime Gun Intelligence Centers (CGICs), and all related resources, to maximize the use of modern intelligence tools and technology. These tools can greatly enhance the speed and effectiveness in identifying trigger-pullers and finding their guns, but the success depends in large part on state, local, and tribal law enforcement partners sharing ballistic evidence and firearm recovery data with the ATF.
Federal law enforcement represents only about 15% of all law enforcement resources nationwide. Therefore, partnerships with state, local, and tribal law enforcement and the communities they serve are critical to addressing gun crime. The Department recognizes that sharing information with our state, local, and tribal law enforcement partners at every level will enhance public safety, and provide a greater depth of resources available to address gun crime on a national level.
For more information on Project Guardian, see the Attorney General’s memorandum at: https://www.justice.gov/ag/project-guardian-memo-2019/download
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- Coordinated Prosecution. Federal prosecutors and law enforcement will coordinate with state, local, and tribal law enforcement and prosecutors to consider potential federal prosecution for new cases involving a defendant who: a) was arrested in possession of a firearm; b) is believed to have used a firearm in committing a crime of violence or drug trafficking crime prosecutable in federal court; or c) is suspected of actively committing violent crime(s) in the community on behalf of a criminal organization.
U.S. Attorney J. Douglas Overbey Announces Guilty Pleas in Large Government FraudRead the Press Release
CHATTANOOGA, Tenn. – United States Attorney J. Douglas Overbey announced today that Rahim and Karim Sadruddin were entering guilty pleas to two counts of wire fraud and one count of money laundering in connection with an information filed in the U.S. District Court for the Eastern District of Tennessee. The Sadruddins were charged as part of a scheme greater than $30 million to defraud FEMA, TVA, and the State of Tennessee related to the procurement of tarps for hurricane victims in Puerto Rico and the fraudulent acquisition of state and federal grant funds for the purpose of establishing a textile manufacturing plant in Pikeville. The defendants entered their guilty pleas in front of United States Magistrate Judge Christopher H. Steger in the United States Court in Chattanooga.
Upon conviction, the Sadruddins each face the following punishments: 1) Counts One and Two (Wire Fraud) – Since the offense involved a presidentially declared major disaster and emergency, imprisonment for up to 30 years; a fine of up to $1 million; and any lawful restitution. 2) Count Three (Money Laundering) – Imprisonment up to 10 years; a fine up to $250,000 or twice the amount of criminally derived property; and any lawful restitution. As part of their guilty pleas and plea agreements with the United States, the defendants will forfeit numerous items including houses, vehicles, bank accounts, and other personal property that were obtained through the proceeds of the fraud whole.
The United States Attorney’s Office for the Eastern District of Tennessee partnered with numerous other federal, state, and local law enforcement and administrative agencies to conduct the investigation in this case. The agencies involved included the Department of Homeland Security Office of Inspector General (DHS OIG), Federal Bureau of Investigation (FBI), Tennessee Valley Authority Office of Inspector General (TVA OIG), Tennessee Bureau of Investigation (TBI), Tennessee State Comptroller’s Office, and the 12th Judicial District Attorney’s Office.
From April 2017 through January 2019, the Sadruddins devised and participated in a scheme first to defraud the state of Tennessee and Tennessee Valley Authority by providing false information to win a bid for over $3 million worth of grants to build a textile manufacturing plant and provide jobs to the citizens of Bledsoe County, in Pikeville. Once they began wrongfully receive those funds from the State of Tennessee as part of the grant, they used that money to begin buying tarps to satisfy a separate $30 million contract with the Federal Emergency Management Agency (FEMA), in which they pledged to provide tarps to citizens in Puerto Rico following the devastating hurricanes in that region – Hurricane Maria and Hurricane Irma. As part of the contract, the defendants pledged to obtain tarps from Trade Agreements Act (TAA)-compliant countries and to provide tarps that met FEMA specifications. Instead, the defendants used the funds fraudulently obtained from the State of Tennessee and TVA to purchase tarps from China – a non-TAA-compliant country – that did not meet the contract specifications. The defendant’s falsified records suggesting they had legally procured the tarps and that the tarps met the agreed-upon specifications. Subsequent inspection of the tarps and documentation the defendants provided revealed the existence of the fraud and non-compliance with the specifications of the contract to help the victims of the hurricanes.
On October 22, 2019, a 3-count Information, which included the aforementioned charges, was filed with the United States District Court for the Eastern District of Tennessee in Chattanooga.
United States Attorney J. Douglas Overbey praised the hard work of the Assistant U.S. Attorneys and the collaboration which resulted from the cooperative efforts of several federal and state agencies. “The diligent and tireless efforts of Assistant U.S. Attorneys Steven Neff and Gretchen Mohr were critical to ensure our office’s commitment of cooperation and support for our federal, state, and local law enforcement partners remains strong. The Department of Justice and the U. S. Attorney’s Office for the Eastern District of Tennessee are dedicated to protecting all of our citizens from those who seek to victimize them in their most vulnerable moments,” said U.S. Attorney Overbey.
“The Department of Homeland Security (DHS), Office of Inspector General (OIG) in partnership with the Department of Justice is committed to identifying and investigating fraud schemes and corrupt activities that pose significant risk and major financial impact to DHS and its components, including FEMA. This fraud scheme siphoned millions of federal and state tax dollars while preventing disaster victims from receiving quality materials to protect their homes,” said James E. Long, Special Agent in Charge, Major Frauds and Corruption Unit, DHS OIG. “Fraud perpetrated against FEMA is detrimental to our nation’s infrastructure and safety, especially from programs that support local communities and disaster victims.”
"We appreciate the partnership between the multiple state and federal agencies who made this investigation possible. We believe this case will lead to more oversight and accountability of public funds. Taxpayers expect nothing less," said Tennessee Comptroller Justin P. Wilson.
Jill Matthews, Deputy Inspector General of the Tennessee Valley Authority’s (TVA) Office of the Inspector General (OIG), added, “A critical mission of TVA is to help give the people of the Tennessee Valley a better opportunity to prosper by bringing investment and good jobs to the region. The TVA OIG would like to thank the United States Attorney’s Office, specifically Assistant U.S. Attorney Steve Neff, Tennessee Comptroller’s Office, Tennessee Bureau of Investigation, Federal Bureau of Investigation, and Department of Homeland Security OIG for working hand in hand with our office to investigate this fraudulent activity affecting a TVA program designed to promote investment in the Valley. With the cooperation of these federal and state law enforcement agencies and the assistance of TVA Economic Development, we were able to successfully gather the evidence needed to bring this case to a successful conclusion. We are pleased that justice has been served against those individuals that defrauded TVA and the people of the Tennessee Valley.”
“This investigation clearly demonstrates law enforcement's dedication to investigating major financial crimes. As evidenced by this case, the FBI’s commitment is to not only hold law breakers accountable for their actions, but also to utilize the Federal forfeiture laws to strip law breakers of the fruits of their crimes, with the goal of recovering assets to repay their victims. With our law enforcement partners, the FBI will continue to allocate expert resources to investigate and prosecute all those who are intent in defrauding the American public," said FBI’s Special Agent in Charge Joe Carrico.
Steven S. Neff and Gretchen Mohr, Assistant United States Attorneys, represent the United States.
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Justice Department Awards $95 Million to Improve Public Safety in the State of TennesseeRead the Press Release
The Department of Justice today announced awards of approximately $95 million to support public safety efforts in the state of Tennessee. The funding from the Office of Community Oriented Policing Services (COPS), Office of Justice Programs (OJP), and Office on Violence Against Women (OVW) will target violent crime, support law enforcement efforts to combat the manufacture and distribution of illicit drugs, improve officer mental health and wellness, and enhance school safety.
“Supporting our partners in state, local and tribal law enforcement is at the heart of our mission at the Department of Justice,” said COPS Office Director Phil Keith. “These federal investments in the state of Tennessee will help keep kids safe in school, provide peer support services for law enforcement officers and give crime victims critical resources needed to heal in the aftermath of a crime.”
“Tennessee’s brave crime-fighters and compassionate service providers deserve to know that the Department of Justice is doing everything in its power to help them safeguard their communities and protect their fellow citizens,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “The Office of Justice Programs is so very pleased to make its resources available to support them in this vital work.”
Director Keith made the announcement in Nashville on Thursday morning along with U.S. Attorney for the Middle District of Tennessee Don Cochran; U.S. Attorney for the Eastern District of Tennessee J. Douglas Overbey; U.S. Attorney for the Western District of Tennessee D. Michael Dunavant; and Tennessee Bureau of Investigation (TBI) Director David Rausch. Also on hand for the announcement were Metropolitan Nashville Police Deputy Chief John Drake; Memphis Police Deputy Chief Michael Hardy; Tennessee Association of Chiefs of Police Executive Director Maggi Duncan; Tennessee Office of Criminal Justice Programs Deputy Director Daina Moran; and Director of the Elizabethton, Tennessee City School District Dr. Corey Gardenhour.
TBI was awarded nearly $2 million from the COPS Office for investigating illicit activities related to heroin distribution and methamphetamine trafficking. In addition, the cities of Memphis and Nashville were both awarded funding through the Law Enforcement Mental Health and Wellness Act program for their respective officer peer support programs. The well-being and safety of the nation’s law enforcement officers is a top priority for the Department of Justice, and these awards are a step in the direction of helping our men and women in blue get the services they need and deserve. Other awards announced today will assist with violent crime reduction, rapid DNA analysis, school safety, and victim services, and will provide much needed equipment for law enforcement agencies.
“These grant awards make possible programs which would otherwise be impossible to implement and provide our local governments with the necessary resources to make our communities safer,” said U.S. Attorney Don Cochran of the Middle District of Tennessee. “I’m grateful to Director Keith and his office for the support they continue to provide to our state and local agencies.”
“The Department of Justice is committed to providing meaningful resources to our state and local law enforcement partners, and this announcement of crucial public safety grant funding will fulfill the President’s Executive Orders to reduce crime in America and Back the Blue," said U.S. Attorney D. Michael Dunavant of the Western District of Tennessee. “These grant resources from the COPS Office will allow our state and local partners to focus on the priority areas of violent crime and drug trafficking, as well as the emerging areas of school safety and officer health and wellness.”
“I find the Department of Justice’s continued support of its law enforcement allies very heartening,” said U.S. Attorney J. Douglas Overbey of the Eastern District of Tennessee. “These federal resources will serve to provide better tools to promote safety within our state as well as the well-being of law enforcement officers and victims of crimes. The U.S. Attorney’s Office will continue to support its federal, state, and local law enforcement partners in all endeavors that seek to promote justice and safety within our community.”
“This grant funding will make the difference for our agency, by providing extra resources to help us better address some of the most pressing issues impacting communities across Tennessee,” said TBI Director David Rausch. “We are thankful to our partners at COPS and the Department of Justice for their support and their investment in TBI and agencies across the state to improve public safety and the quality of life for all Tennesseans.”
“The Memphis Police Department appreciates the COPS Office support through the Law Enforcement Mental Health and Wellness Act funding which will expand Memphis’ Peer Support Program,” said Memphis Police Department Director Michael Rallings. “These funds will allow us to increase the number of Peer Support Officers, enhance opportunities to utilize peer support, and make resources more accessible to officers.”
“Through the support of Justice Department grants, our police department is able to deploy cutting edge technology to better protect our residents, ensure that we are caring for our employees’ mental health and wellness, and ensure that Metro Nashville Police Department personnel receive important specialized training in a number of areas,” Chief Steve Anderson said. “I have often noted that the relationship with our Justice Department partners, including Don Cochran and Phil Keith, is outstanding. I’m grateful for their commitment to Nashville and the state of Tennessee.”
A full list of COPS awards is available online at https://cops.usdoj.gov/grants. OJP awards, organized under specific grant programs, are available online at https://ojp.gov/funding/Explore/OJPAwardData.htm. For OVW awards, visit https://www.justice.gov/ovw/awards.
About the Office of Community Oriented Policing Services:
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 130,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
About the Office of Justice Programs:
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
About the Office on Violence Against Women:
The Office on Violence Against Women provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
Department of Justice Awards More Than 85.3 Million in Grants to Address School ViolenceRead the Press Release
WASHINGTON – Today, the Department of Justice announced it has awarded more than $85.3 million to bolster school security—including funding to educate and train students and faculty—and support first responders who arrive on the scene of a school shooting or other violent incident.
“These federal resources will help to prevent school violence and give our students the support they need to learn, grow, and thrive,” said Attorney General William P. Barr. “By training faculty, students and first responders, and by improving school security measures, we can make schools and their communities safer.”
“The US Attorney’s office continues to support all efforts to create safe environments for students, faculty, and staff,” said U.S. Attorney J. Douglas Overbey of the Eastern District of Tennessee. “Our office is pleased to announce these federal resources will be put to use within our district, and I am confident they will be used to improve school security and add to our community’s collective peace of mind.”
The grants award more than $470,000 in funding to prevent violence in schools in the Eastern District of Tennessee. President Trump signed the STOP School Violence Act into law in March 2018, authorizing grants that are designed to improve threat assessments, train students and faculty to provide tips and leads, and prepare law enforcement officers and emergency professionals to respond to school shootings and other violent incidents. The grant programs are managed by OJP’s Bureau of Justice Assistance and the Justice Department’s Office of Community Oriented Policing Services.
The Bureau of Justice Assistance, within the Department’s Office of Justice Programs, and the Office of Community Oriented Policing Services manage the programs and administer the grants, which include funds to:
- Develop school threat assessment teams and pursue technological solutions to improve reporting of suspicious activity in and around schools;
- Implement or improve school safety measures, including coordination with law enforcement, as well as the use of metal detectors, locks, lighting and other deterrent measures;
- Train law enforcement to help deter student violence against others and themselves;
- Improve notification to first responders through implementation of technology that expedites emergency notifications;
- Develop and operate anonymous reporting systems to encourage safe reporting of potential school threats;
- Train school officials to intervene when mentally ill individuals threaten school safety; and
- Provide training and technical assistance to schools and other awardees in helping implement these programs.
For more details about these individual award programs, as well as listings of individual 2019 awardees, visit here.
About the Office of Justice Programs:
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal justice system. More information about OJP and its components can be found at www.ojp.gov.
About the Office of Community Oriented Policing Services:
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 130,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
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Two East Tennessee Doctors Plead Guilty to Opioid OffensesRead the Press Release
Two Tennessee doctors each pleaded guilty yesterday to one count of unlawful distribution of a controlled substance.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Doug Overbey of the Eastern District of Tennessee, Special Agent in Charge Joe Carrico of the FBI’s Knoxville Field Office, Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) and Director David Rausch of the Tennessee Bureau of Investigation made the announcement.
Samuel Mcgaha, M.D., of Sevierville, Tennessee, and Frank McNiel, M.D., of Knoxville, Tennessee, each pleaded guilty to one count of unlawful distribution of a controlled substance. The charges stem from Mcgaha’s and McNiel’s roles in prescribing high doses of opioids with no medical legitimacy – McNiel from his home. From 2015 until March 2018, Mcgaha and McNiel prescribed 212,226 and 59,712 opioid pills, respectively. During this period, Mcgaha admittedly wrote opioid prescriptions that exceeded Centers for Disease Control guidelines and prescribed opioids even when patients tested positive for non-prescribed prescriptions and illicit substances. McNiel admittedly wrote opioid prescriptions without evaluating patients and without obtaining medical records that would have justified the prescription of opioids. Sentencing has been scheduled for March 26, 2020, before the Honorable Thomas A. Varlan.
The FBI, HHS-OIG, the Drug Enforcement Administration and the Tennessee Bureau of Investigation investigated the case. Trial Attorney Louis Manzo of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Anne Svolto of the Eastern District of Tennessee are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
James Nickolas Renfro Sentenced to Serve 200 Months in Prison for Distributing Child PornographyRead the Press Release
CHATTANOOGA, Tenn – On October 9, 2019, James Nickolas Renfro, 27, of Chattanooga, Tennessee, was sentenced by the Honorable Curtis L. Collier, Senior U.S. District Court Judge, to serve 200 months in federal prison.
Renfro pleaded guilty on June 19, 2019, to distributing child pornography. The defendant admitted in Court that he had placed an online advertisement offering to permit other collectors of child pornography to engage in a live online session with an 8-year-old child while the child was in a bathtub. The advertisement included nude images of an acquaintance’s child in a bathtub. The defendant admitted that his goal was to trade the live sessions for images of child pornography. The defendant surrendered his electronic devices to law enforcement officials, and a subsequent search of his devices revealed numerous images of child pornography.
“Individuals who distribute child pornography further injure innocent victims each time these illegal images are distributed more widely online," said John Condon, special agent in charge of Homeland Security Investigations Nashville. “Child sex abuse is one of the most serious crimes HSI investigates due to the lasting psychological and physical damage it can inflict on victims, and as such it will continue to be one of the agency’s highest priorities.”
United States Attorney J. Douglas Overbey emphasized the importance of seeking lengthy terms of imprisonment for those convicted of offenses involving the exploitation of children, stating, “Defendants such as Mr. Renfro are dangerous predators, and our office will continue in our vigorous efforts to protect our children, the most vulnerable and innocent of our society.”
The case was investigated by Homeland Security Investigations, Special Agent David Nalley. Assistant U.S. Attorney James T. Brooks prosecuted the case for the United States.
Leonard Wayne Mullinax Sentenced to 235 Months on Methamphetamine, Firearm and Money Laundering ChargesRead the Press Release
GREENEVILLE, Tenn. – On October 7, 2019, Leonard Wayne Mullinax, 49, of Gaffney, South Carolina, was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 235 months in federal prison following convictions for his role in a conspiracy to distribute methamphetamine, launder money and possessing firearms in furtherance of his drug trafficking.
According to his plea agreement on file with the U.S. District Court, Mullinax was the out of state source of supply for this particular methamphetamine conspiracy operating in the Eastern District of Tennessee. Following the indictment in this case, law enforcement officers searched Mullinax’s residence and place of business in Gaffney, South Carolina and recovered an approximate kilogram of methamphetamine, 28 firearms, ammunition, a drug ledger, a vacuum sealer and other miscellaneous items of paraphernalia. Mullinax stipulated that he was accountable for at least 4 but less 4.5 kilograms of methamphetamine and that he had been supplying co-defendant Edward Walters, 48, of Surgoinsville, Tennessee for about a year. Edward Walters is currently pending sentencing.
Other defendants who have been previously sentenced in this methamphetamine trafficking conspiracy include Jamie Nicole Wilson, 42, of Gaffney, South Carolina, Jason Ronald Burchfield, 39, of Hawkins County, Tennessee, Matthew Glenn Russell, 27, of Rogersville, Tennessee, Amber Lynn Hall, 29, of Church Hill, Tennessee, Jimmy Lee Gray, 37, of Surgoinsville, Tennessee and Michael James Walters, 46, of Bristol, Tennessee, who were sentenced to 200 months, 149 months, 135 months, 135 months, 120 months and 120 months, in federal prison respectively.
Law enforcement agencies participating in the investigation included the Federal Bureau of Investigation (FBI), Hawkins County Sheriff’s Office, Hamblen County Sheriff’s Office, Bureau of Alcohol, Tobacco and Firearms (ATF), United States Postal Inspector, Third District Judicial Drug Task Force, Cherokee County, South Carolina Sheriff’s Office and the United States Marshal Service. Assistant U.S. Attorney Wayne Taylor represented the United States.
This case was a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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Ildefonso Bautista Nogales Sentenced to Serve 10 Years in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
Greeneville, Tenn. – Ildefonso Bautista Nogales, 30, of Mexico, was sentenced on October 7, 2019, by the Honorable Pamela L. Reeves, Chief U.S. District Court Judge, to serve 10 years in federal prison. Nogales pleaded guilty in April of 2019 to conspiring with codefendant Erika Lawson to distribute methamphetamine in East Tennessee. Judge Reeves sentenced Erika Lawson, 33, of Morristown, Tennessee, on June 17, 2019 to serve 100 months in federal prison.
Agencies involved in this investigation included the Hamblen County Sheriff’s Department and the FBI. Robert M. Reeves, Assistant U.S. Attorney represented the United States.
U.S. Attorney J. Douglas Overbey Announces Progress in Making our Communities Safer through Project Safe NeighborhoodsRead the Press Release
Knoxville, Tenn. – Two years ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), the centerpiece of the department’s violent crime reduction strategy. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Throughout the past two years, we have partnered with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make our neighborhoods safer for everyone. According to FBI’s Uniform Crime Report released this week, the violent crime rate decreased for the second consecutive year, down 3.9 percent from the 2017 numbers.
“The revitalized Project Safe Neighborhoods program is a major success,” said Attorney General William P. Barr. “It packs a powerful punch by combining advanced data with local leadership, further reducing violence in communities across the country and improving overall public safety. U.S. Attorneys continue to focus their enforcement efforts against the most violent criminals and work in partnership with federal, state, local, and tribal police. The Justice Department’s relationships across the board have never been stronger.”
As we celebrate the two-year anniversary of the revitalized PSN program, here are some of the highlights of PSN actions in the Eastern District of Tennessee (TNE) over the past year:
Enforcement Actions
The United States Attorney’s Office (USAO) collaborates with the police departments of Chattanooga, Knoxville, Morristown, and Johnson City, the Tennessee Bureau of Investigation, federal law enforcement agencies that include the ATF, FBI, DEA, ICE, U.S. Marshals Service, and District Attorneys General from Hamilton County, Knox County, Washington County, and Hamblen County to reduce violent crime. Based on detailed analysis of violent crime data, these partners work together to prosecute the most violent offenders and disrupt gang violence.
In September of 2018, the USAO, in conjunction with our federal and local partners in Chattanooga, met with the U.S. Marshall Service to bring their Triple Beam initiative to Chattanooga. This initiative involved planning a six-week fugitive round-up from late October through December that targeted violent fugitives who were gang members. This operation was responsible for the arrest of 126 people and seizure of seven firearms during the operation.
https://newschannel9.com/news/local/operation-triple-beam-126-violent-offenders-gang-members-arrested-in-hamilton-county
Community Partnerships
The USAO collaborates with cities to bring together community organizations and faith-based organizations to offer social services to gang members and other potentially violent individuals in an attempt to ease re-entry into society and prevent future violence.
Improvements to Community Safety
- For the second consecutive year, the estimated number of violent crimes in the nation decreased when compared with the previous year’s statistics, according to FBI figures released today. In 2018, the number of violent crimes was down 3.3 percent from the 2017 number.
- The 2018 statistics also show the estimated rate of violent crime was 368.9 offenses per 100,000 inhabitants. The violent crime rate fell 3.9 percent when compared with the 2017 rate.
- As of September, in 2018 criminal homicides had decreased in Chattanooga by 61% compared to that same period in 2017, including a 53% drop in gang-related homicides.
- From 2017 through 2018, TNE’s firearm cases filed increased from 195 to 257, which is higher than the national average of 187 filed in large districts. Similarly, TNE’s firearm defendants increased from 250 to 355, which is also higher than the 229 average defendants for large districts during that same period of time.
- From 2017 through 2018, TNE’s reported a 32% increase in firearm cases filed as well as a 42% increase in number of firearm defendants.
These enforcement actions and partnerships are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Former Chattanooga Police Officer Pleads Guilty to Sexual AssaultRead the Press Release
WASHINGTON – Desmond Logan, 38, formerly an officer with the Chattanooga Police Department (CPD), pleaded guilty today in federal court in the Eastern District of Tennessee to two counts of violating the civil rights of victims while performing his duties as a law enforcement officer. Specifically, the defendant sexually assaulted one woman and, in a separate incident, entered the car of another victim and refused to let her out, causing her to fear for her physical safety.
According to court documents filed in connection with the guilty plea, the defendant, while on duty on June 12, 2018, handcuffed and arrested K.B.V. Rather than transporting K.B.V. directly to the Hamilton County Jail, the defendant drove K.B.V. in his squad car to an empty and isolated parking lot. There, Logan sexually assaulted K.B.V. Additionally, on Jan. 2, 2016, in the evening hours, the defendant, while working on a security detail at the University of Tennessee in Chattanooga, got in the passenger seat of D.H.’s car and claimed he needed a ride to his car, which he maintained was parked in a different lot. The defendant intentionally directed D.H. to a secluded parking lot with no people. There, the defendant took out his taser and pressed it against D.H.’s leg, causing D.H. to fear that he would cause her physical harm. When D.H. tried to escape, Logan prevented her from getting out of the car.
In addition to these two victims, the defendant admitted as part of his guilty plea that he also sexually assaulted two more female victims who were in his custody. In each of these two incidents, the defendant drove the victim in his squad car to a deserted area where he sexually assaulted them. None of these victims consented to having sexual contact with the defendant.
“The Department of Justice is committed to prosecuting officers who violate their oath by sexually assaulting and unlawfully seizing persons while on duty,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “We will continue to send the strong message that the federal government will not tolerate such egregious abuses of power.”
“This case exhibits our continued efforts to prosecute those who would use their power to commit acts of violence and injustice against members of our community,” said U.S. Attorney J. Douglas Overbey of the Eastern District of Tennessee. “Our office will continue to stand by and protect the victims of such crimes.”
"Civil Rights violations, particularly when they involve a member of law enforcement, are of tremendous concern. The entire law enforcement profession is tarnished when an officer betrays the oath to protect and serve. The FBI will vigorously investigate any officer or agent of the law who is breaking the rules that he or she is sworn to uphold or is violating the civil rights of others," said Knoxville Special Agent in Charge Joe Carrico.
With his guilty plea, the defendant faces a maximum sentence of 20 years in prison. In addition to the sentence that the Court ultimately imposes, the defendant must forfeit his law enforcement certification.
A sentencing date has been set for February 10, 2020..
This case was investigated by the Knoxville Division of the FBI, with the support of the Hamilton County Sheriff's Office. Assistant United States Attorney James Brooks of the Eastern District of Tennessee and Special Litigation Counsel Fara Gold and Trial Attorney Olimpia Michel of the Criminal Section of the Civil Rights Division of the U.S. Department of Justice are prosecuting the case.
Former Chattanooga Police Officer Pleads Guilty to Sexual AssaultRead the Press Release
Desmond Logan, 38, formerly an officer with the Chattanooga Police Department (CPD), pleaded guilty today in federal court in the Eastern District of Tennessee to two counts of violating the civil rights of victims while performing his duties as a law enforcement officer. Specifically, the defendant sexually assaulted one woman and, in a separate incident, entered the car of another victim and refused to let her out, causing her to fear for her physical safety.
According to court documents filed in connection with the guilty plea, the defendant, while on duty on June 12, 2018, handcuffed and arrested K.B.V. Rather than transporting K.B.V. directly to the Hamilton County Jail, the defendant drove K.B.V. in his squad car to an empty and isolated parking lot. There, Logan sexually assaulted K.B.V. Additionally, on Jan. 2, 2016, in the evening hours, the defendant, while working on a security detail at the University of Tennessee in Chattanooga, got in the passenger seat of D.H.’s car and claimed he needed a ride to his car, which he maintained was parked in a different lot. The defendant intentionally directed D.H. to a secluded parking lot with no people. There, the defendant took out his taser and pressed it against D.H.’s leg, causing D.H. to fear that he would cause her physical harm. When D.H. tried to escape, Logan prevented her from getting out of the car.
In addition to these two victims, the defendant admitted as part of his guilty plea that he also sexually assaulted two more female victims who were in his custody. In each of these two incidents, the defendant drove the victim in his squad car to a deserted area where he sexually assaulted them. None of these victims consented to having sexual contact with the defendant.
“The Department of Justice is committed to prosecuting officers who violate their oath by sexually assaulting and unlawfully seizing persons while on duty,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “We will continue to send the strong message that the federal government will not tolerate such egregious abuses of power.”
“This case exhibits our continued efforts to prosecute those who would use their power to commit acts of violence and injustice against members of our community,” said U.S. Attorney J. Douglas Overbey of the Eastern District of Tennessee. “Our office will continue to stand by and protect the victims of such crimes.”
"Civil Rights violations, particularly when they involve a member of law enforcement, are of tremendous concern,” said Special Agent in Charge Joe Carrico of the FBI’s Knoxville Field Office. “The entire law enforcement profession is tarnished when an officer betrays the oath to protect and serve. The FBI will vigorously investigate any officer or agent of the law who is breaking the rules that he or she is sworn to uphold or is violating the civil rights of others."
With his guilty plea, the defendant faces a maximum sentence of 20 years in prison. In addition to the sentence that the Court ultimately imposes, the defendant must forfeit his law enforcement certification.
A sentencing date has been set for Feb. 10, 2020.
This case was investigated by the Knoxville Division of the FBI, with the support of the Hamilton County Sheriff's Office. Assistant United States Attorney James Brooks of the Eastern District of Tennessee and Special Litigation Counsel Fara Gold and Trial Attorney Olimpia Michel of the Criminal Section of the Civil Rights Division of the U.S. Department of Justice are prosecuting the case.
Bear Poachers Banned from Hunting and Banned from the Cherokee National ForestRead the Press Release
KNOXVILLE, Tenn. – On September 4, 2019, Keith Bernard McJunkin, 59, of Tellico Plains, Tennessee, and Levi Zachary Wilson, 31, of Tellico Plains, Tennessee, were found guilty by the Honorable H. Bruce Guyton, Chief U.S. Magistrate Judge, of baiting bears inside the Cherokee National Forest. Each defendant was sentenced to 2 years of probation and banned from hunting anywhere or entering any national forest for a period of 2 years. Keith McJunkin was also ordered to pay $1,600 in fines, and Levi Wilson was ordered to pay $1,100 in fines.
Keith McJunkin and Levi Wilson were two members of a group of hunters from Tellico Plains, Tennessee, who baited and trapped bears inside the Cherokee National Forest in July and August of 2018. Terry Worth McJunkin, 37, Joseph Don Taylor, 38, and Derrick F. Cathey, 32, each previously pleaded guilty to hunting bear over bait. Terry McJunkin was sentenced to 5 years of probation with a 5-year hunting ban and 5-year national-forest ban and ordered to pay $4,000 in fines. Joseph Taylor and Derrick Cathey were each sentenced to 2 years of probation with a 1-year hunting ban and 1-year national-forest ban. Joseph Taylor was also ordered to pay $3,000 in fines and $250 in restitution to the U.S. Forest Service. Derrick Cathey was ordered to pay $250 in fines.
The investigation of the illegal bear poaching was jointly conducted by officers from the U.S. Forest Service and the Tennessee Wildlife Resources Agency. Assistant U.S. Attorney Luke A. McLaurin represented the United States.
Six Defendants Indicted for Methamphetamine Conspiracy ChargesRead the Press Release
Knoxville, Tenn. – On September 4, 2019 a federal grand jury in Knoxville also returned a single count indictment against the following individuals alleging a conspiracy to possess with the intent to distribute 50 grams or more of methamphetamine:
Alim Turner, 21, of Knoxville, Tennessee
Ushery Michael Stewart, 20, of Knoxville, Tennessee
Ronald J Turner, 23, of Knoxville, Tennessee
Kadaris Traysean Gilmore, 21, of Knoxville, Tennessee
Christopher Andrew Hounschell, 31, of Knoxville, Tennessee
Michael Scott Stewart, 40, of Knoxville, Tennessee
The trial is set for November 12, 2019, in front of United States District Judge Thomas A. Varlan. If convicted of the methamphetamine distribution conspiracy charge, each defendant faces a minimum mandatory term of at least 10 years and up to life in prison, at least 5 years of supervised release, a fine of up to $10,000,000, criminal forfeiture, and a $100 special assessment.
FBI Agents and Knoxville Police Officers are looking for Alim Turner. Turner goes by the street name “Baby Popoff.” Turner stands 5’ 9” and weighs 170 pounds. He is known to carry firearms. Anyone with information on his whereabouts is asked to contact the FBI’s Knoxville Field Office at (865) 544-0751 or the Knoxville Police Department at (865) 215-7212.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
This case was investigated by the FBI Safe Streets and High Intensity Drug Trafficking Area (HIDTA) Task Forces. These task forces are comprised of police officers from the Knoxville and Kingston Police Departments, Sheriff’s Deputies from the Knox, Blount, Sevier, Roane and Loudoun County Sheriff’s Offices and prosecutors from the District Attorney General’s Offices and the United States Attorney’s Office for the Eastern District of Tennessee. These task forces are resource multipliers for crime-fighting efforts in East Tennessee, leveraging law enforcement resources to fight the most violent criminals in the area. Assistant United States Attorney Kevin Quencer will represent the United States.
The investigation is a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Knoxville Man Indicted for Cocaine Conspiracy ChargeRead the Press Release
Knoxville, Tenn. – On September 4, 2019, a federal grand jury in Knoxville returned a single count indictment against the following individual alleging a conspiracy to possess with the intent to distribute crack cocaine:
Mahlon Tyron Prater, 22, of Knoxville, Tennessee
The case is set in front of Chief United States District Judge Pamela L. Reeves. If convicted of the cocaine distribution conspiracy charge, Prater faces up to 20 years in prison, at least 3 years of supervised release, a fine of up to $1,000,000, criminal forfeiture, and a $100 special assessment.
FBI Agents and Knoxville Police Officers are looking for Prater. Prater goes by the street name “Moe.” Prater stands 5’ 10” inches and weighs 165 pounds. He is known to carry firearms. Anyone with information on his whereabouts is asked to contact the FBI’s Knoxville Field Office at (865) 544-0751 or the Knoxville Police Department at (865) 215-7212.
Members of the public are reminded that an indictment constitutes only charges and that Prater is presumed innocent until his guilt has been proven beyond a reasonable doubt.
This case was investigated by the FBI Safe Streets and High Intensity Drug Trafficking Area (HIDTA) Task Forces. These task forces are comprised of police officers from the Knoxville and Kingston Police Departments, Sheriff’s Deputies from the Knox, Blount, Sevier, Roane and Loudoun County Sheriff’s Offices and prosecutors from the District Attorney General’s Offices and the United States Attorney’s Office for the Eastern District of Tennessee. These task forces are resource multipliers for crime-fighting efforts in East Tennessee, leveraging law enforcement resources to fight the most violent criminals in the area. Assistant United States Attorney Kevin Quencer will represent the United States.
The investigation is a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
DEA Target Methamphetamine in Three States with Operation Crystal MountainRead the Press Release
LOUISVILLE, KY – The United States Drug Enforcement Administration this week announced the conclusion of Operation Crystal Mountain, a sweeping enforcement action spanning three states. DEA special agents, working closely with their state and local counterparts throughout Kentucky, Tennessee, and West Virginia targeted Mexican drug cartels, drug trafficking organizations and other individuals involved in the manufacturing and distribution of methamphetamine. More than 800 pounds of methamphetamine were interdicted or seized during the operation.
“Everyone has a right to live in safety. The amount of drugs and weapons we’ve taken off the street with this operation, along with the number of drug dealers that we’ve locked up, represents a small victory in our on-going fight for safer communities for us all,” D. Christopher Evans, Special Agent in Charge of DEA’s Louisville Division Office said. “While America’s opioid crisis may dominate headlines, Operation Crystal Mountain should serve as a reminder that methamphetamine is a problem that has never gone away. The dedicated men and women of DEA, working closely with state and local law enforcement, are relentless in their efforts to rid our neighborhoods of dangerous drugs and bring to justice those who distribute them, wherever they may be.”
“The Eastern District of Tennessee continues to support and work with our law enforcement partners to combat the meth scourge in our region,” said U.S. Attorney J. Douglas Overbey. “It is only with our combined efforts that we can effectively fight this menace that continues to destroy the lives and families of our citizens.”
Operation Crystal Mountain is the culmination of several investigations that began earlier this year. Since January, DEA special agents from the Louisville Field Division, with support from state and local law enforcement agencies across the region, have arrested 235 individuals on federal drug-related charges and seized more than $800,000.00 in cash and 52 firearms, as well as significant quantities of heroin, fentanyl, and other drugs. During this same timeframe, DEA assisted its state and local counterparts with the arrest of 140 additional offenders on state-level drug charges.
While the opioid epidemic has ravaged the nation, several large swaths of the U.S. see meth as their primary drug threat. The majority of the methamphetamine in the U.S. is produced in Mexico and trafficked by Mexican DTOs. However, DEA continues to work to disrupt and dismantle all components of both foreign and domestic organizations which produce and traffic methamphetamine.
Cheryl Broussard Pleads Guilty to Wire FraudRead the Press Release
KNOXVILLE, Tenn. – Cheryl D. Broussard, 63, of Miami, Florida, entered a plea of guilty on August 14, 2019, in the United States District Court for the Eastern District of Tennessee at Knoxville, to a federal indictment charging her with wire fraud. Sentencing has been set for January 16, 2020, at 2:00 p.m., in United States District Court in Knoxville. Broussard faces a term of up to 20 years in prison.
In a written plea agreement, Broussard admitted to entering into an investment agreement with Iota Phi Lambda Sorority, Inc., a national business and professional women’s sorority, through which she would manage $100,000 of the sorority’s funds in securities. She told the sorority that she was employed at Contenta Capital Group, and falsely claimed that she was a registered investment advisor. Broussard sent periodic reports, containing fabricated information, to the sorority concerning the status of their investments. Rather than investing the funds, however, Broussard converted the money to her own use.
This prosecution was the result of an investigation by the Federal Bureau of Investigation. Trial Attorneys Tracee Plowell and Michelle Pascucci, of the U.S. Department of Justice, Fraud Section, and Assistant United States Attorney Frank M. Dale, Jr., represented the United States.
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Innocence Lost National Initiative and Operation Independence Day 2019Read the Press Release
WASHINGTON – The Department of Justice announced today the FBI-led recovery or identification of 103 child victims and the arrest of 67 sex traffickers through Operation Independence Day. This initiative — a revamping of a previously successful program — was executed during the month of July through 161 operations conducted nationwide.
Operation Independence Day relied on the 86 FBI-led Child Exploitation and Human Trafficking Task Forces (CEHTTFs), which leveraged the resources and intelligence of other federal, state, local, and tribal partners. Overall, more than 400 agencies participate in these task forces.
Operation Independence Day prioritized locating and rescuing missing minors who are at great risk for sexual exploitation, and arresting the traffickers exploiting them. To that end, through its partnership with the National Center for Missing and Exploited Children (NCMEC), FBI special agents and intelligence analysts reviewed information provided through NCMEC’s CyberTipline, to identify missing minor children at risk for sexual exploitation, and then worked with state and local partners to execute law enforcement activity designed to recover those children and arrest traffickers.
The health and welfare of recovered minor and adult trafficking victims was a further priority. To facilitate these efforts, the FBI’s Victim Services Division and victim specialists stationed in each of our 56 field offices also worked closely with the task forces during the operation to ensure recovered children received the help they needed. Victim specialists put internal and external resources in place before the operation to ensure victim assistance was a priority in the aftermath of the law enforcement operations.
“This initiative has two crucial goals: rescuing children being sold for sex and prosecuting their adult traffickers,” said Attorney General William P. Barr. “Child sex trafficking is a heinous crime that preys on the most vulnerable in our society. Perpetrators victimize children in communities throughout the country, and we are determined to find and rescue them. Through the FBI’s leadership, we have recovered thousands of child victims, and this latest operation adds to the success of that decades-long effort.”
“Make no mistake, the FBI is fiercely focused on recovering child victims and arresting the sex traffickers who exploit them,” said FBI Director Christopher Wray. “Through operations like this, the FBI helps child victims escape the abusive life of sex trafficking. Our agents, intelligence analysts, professional staff, and victim specialists work tirelessly before, during and after these operations to make sure that victims get the help they need to reclaim their lives.”
“The National Center for Missing & Exploited Children is proud to be part of this extraordinary partnership with the FBI. The FBI and the Department of Justice have been instrumental in spearheading multi-agency collaboration between organizations to locate and provide resources to victims of child sex trafficking,” said John Clark, President and CEO of NCMEC. “We know this horrendous crime impacts communities across our country every day and we applaud the FBI for continuing to work tirelessly to locate these victims and hold accountable those who are selling children for sex.”
In June 2003, the FBI, in conjunction with the Justice Department Criminal Division’s Child Exploitation and Obscenity Section and NCMEC, launched the Innocence Lost National Initiative (ILNI). This combined effort was aimed at addressing the growing problem of domestic sex trafficking of children in the United States. In the years since its inception, the ILNI has expanded to 86 dedicated CEHTTFs. These task forces, with the U.S. Attorney’s Offices and the FBI’s Victim Services Division, have worked successfully to rescue thousands of children.
Through ILNI, the FBI, along with its local law enforcement partners, uses task forces to leverage resources and intelligence to identify and recover child victims and prosecute those responsible for their exploitation. This collaborative effort has led to the recovery or identification of more than 6,600 child victims. The initiative has also led to more than 2,750 convictions, including more than 15 life sentences and many other sentences ranging from 25 years to life.
In 2008, the ILNI initiated Operation Cross Country (OCC)—a focused, national campaign that targeted the venues where children were the victims of commercial sex trafficking. Since 2008, there have been 11 iterations of OCC, recovering more than 900 child victims and arresting nearly 1,400 traffickers. The last operation was held in October 2017 with 78 task forces participating.
The FBI determined that after 11 years of OCC success, it was time to re-evaluate the program. The newly renamed Operation Independence Day was conducted over an entire month, rather than a few days, but continued to focus on the recovery of child victims from commercial sex trafficking.
The FBI’s Crimes Against Children and Human Trafficking Unit and DOJ coordinated the operation. For additional information on Operation Independence Day and the Innocence Lost initiative, please visit https://www.fbi.gov/oid2019.