Eastern District of Tennessee
Press releases recorded for this federal judicial district.
Telemarketer and His Companies Agree to Pay $2.5 Million to Settle Allegation That They Operated Telemedicine Schemes Involving Illegal Kickbacks and Unnecessary PrescriptionRead the Press Release
United States Attorney J. Douglas Overbey and U.S. Attorney Maria Chapa Lopez for the Middle District of Florida announce that Scott Roix, together with several entities through which he ran his telemarketing business, including HealthRight, LLC; Health Savings Solutions, LLC; Vici Marketing, LLC; and Vici Marketing Group, LLC (hereinafter collectively referred to as “marketing companies”), have agreed to pay $2.5 million to resolve allegations that Roix and these marketing companies violated the False Claims Act by causing the submission of false claims to federal healthcare programs in connection with telemedicine health care fraud schemes.
The government alleged that: (1) Roix and his marketing companies fraudulently obtained insurance coverage information from consumers across the country to arrange for them to receive prescription pain creams and other similar products, (2) these prescriptions were not medically necessary and did not arise from a valid doctor-patient relationship, and (3) Roix and his marketing companies sold these prescriptions to pharmacies under the guise of marketing services, and the payments solicited were based on the volume and value of the prescriptions.
“The United States Attorney’s Office is committed to protecting TRICARE and other federal health care programs from improper practices that harm our nation’s healthcare programs,” said U.S. Attorney Chapa Lopez. “Those who generate prescriptions for profit and violate the Anti-Kickback Statute will be held accountable.”
“Prescriptions and other medical services resulting from kickbacks undermine the integrity of our health care system,” said U.S. Attorney Overbey. “Telemedicine is a valuable service for our citizens, but it must not be abused. We will take action against individuals who break the law to make a profit at the expense of our federal healthcare programs and, ultimately, at the expense of the American taxpayer.”
“Telemarketing fraud is a major threat to the integrity of the Medicare program,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “Unscrupulous companies collect patient information then sell it to pharmacies and other medical providers in exchange for kickbacks.”
U.S. Postal Service Office of Inspector General Special Agent in Charge Kenneth Cleevely, Eastern Area Field Office, stated, “The U.S. Postal Service spends billions of dollars per year in workers compensation-related costs, most of which are legitimate. However, when medical providers or companies choose to flout the rules and profit illegally, special agents with the USPS OIG will work with our law enforcement partners to hold them responsible. To report fraud or other criminal activity involving the Postal Service, contact our special agents at https://www.uspsoig.gov/ or 888-USPS-OIG.”
“This settlement demonstrates the commitment of the Defense Criminal Investigative Service and our law enforcement partners to ensure that individuals do not unjustly enrich themselves by abusing the Department of Defense TRICARE program. DCIS protects the integrity of DoD programs by rooting out fraud, waste, and abuse which diverts American taxpayer dollars intended to support our Warfighters,” said Special Agent in Charge, Cyndy Bruce, Southeast Field Office.
“Today’s settlement demonstrates the commitment of the Office of Personnel Management Office of the Inspector General and our law enforcement partners at the Department of Justice to ensuring that federal health care programs, including the Federal Employees Health Benefits Program, are protected from fraud and abuse,” said Thomas W. South, the OPM Deputy Assistant Inspector General for Investigations. “I am immensely proud of the work our office has done to not only safeguard taxpayer dollars, but also protect the health and wellbeing of federal employees, annuitants, and their families.”
“This settlement emphasizes the collaborative effort by the FBI and our law enforcement partners to target those individuals who cheat the system and destroy public trust in our federally funded healthcare programs,” said Michael F. McPherson, Special Agent in Charge of the FBI Tampa Division.
The settlement resolves allegations that, beginning in September 2014, Health Savings Solutions, at the direction of Roix, received payments from Oldsmar Pharmacy that were based on the value and volume of prescriptions solicited by Health Savings Solutions in violation of the Anti-Kickback Statute, and the False Claims Act. These allegations were brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims, and to receive a share of any recovery. The qui tam case against Roix and Health Savings Solutions was filed by Jennifer Silva and Jessica Robertson and is captioned: United States ex rel. Silva, et al. v. Vici Marketing, LLC, et al., Middle District of Florida (Case No. 8:15-cv-444-T-33TGW). Ms. Silva and Ms. Robertson will receive $287,500 of the settlement.
The settlement also resolves allegations that, from June 2015 through October 2018, HealthRight, at the direction of Roix, received payments from Synergy Pharmacy that were based on the value and volume of prescriptions solicited by HealthRight on behalf of Synergy Pharmacy. These allegations were also the subject of a criminal case captioned United States v. Scott Roix, et al., Eastern District of Tennessee (Case No. 2:18-cr-133), in which Roix and HealthRight pleaded guilty in September 2018.
This investigation was a collaborative effort between the U.S. Attorneys’ Office of the Eastern District of Tennessee and the Middle District of Florida. It was handled by Assistant U.S. Attorneys Jeremy Dykes, Michael Kenneth, and Jessica Sievert, with support from HHS-OIG, OPM-OIG, USPS-OIG, DOD-DCIS, and FBI.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Harry Keilholtz Sentenced to 240 Months on Methamphetamine Conspiracy and Firearm ChargesRead the Press Release
GREENEVILLE, Tenn. – On August 1, 2019, Harry Keilholtz, 54, of Stone Mountain, Georgia, was sentenced by the Honorable R. Leon Jordan, U.S. District Court Judge, to serve 240 months in federal prison following convictions for his role in a conspiracy to distribute methamphetamine and for possessing firearms in furtherance of his drug trafficking.
According to his plea agreement on file with the U.S. District Court, Keilholtz was the out of state source of supply for this particular methamphetamine conspiracy operating in the Eastern District of Tennessee. A federal search warrant was executed at Keilholtz’s residence in Stone Mountain, Georgia, on February 12, 2016. Numerous customers/co-conspirators were present at the time the warrant was executed. Keilholtz attempted to flee but was apprehended in the back yard. A search of the residence revealed over one kilogram of methamphetamine, a loaded AK-47 rifle, ammunition, and scales. A loaded 9mm pistol was found on Keilholtz’s person.
A few weeks after the execution of the search warrant, Keilholtz became a fugitive. Approximately 30 months later, in November 2018, Keilholtz was finally located and arrested in Panama City, Florida. During the sentencing hearing, an obstruction of justice enhancement was applied to Keilholtz’s sentence due to his fugitive status for about two and half years. In upholding the obstruction of justice enhancement, U.S. District Court Judge R. Leon Jordan noted that Keilholtz had been living under an alias name, had lived in multiple cities during the time of his flight, had identification in someone else’s name, was driving a vehicle registered to someone else, and was living in a recreational vehicle registered to someone else.
Law enforcement agencies participating in the investigation included the Federal Bureau of Investigation (FBI), Hamblen County Sheriff’s Office, Morristown, Tennessee Police Department, and the Third and Fourth District Judicial Drug Task Forces. 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.
Federal Jury Convicts Marilyn Yvette Cook on Fraud ChargesRead the Press Release
[KNOXVILLE, TN] - Following a two-day trial in United States District Court, Knoxville, Tennessee, a jury returned a verdict of guilty, convicting Marilyn Yvette Cook (also known as Marilyn Yvette Powell), of Alcoa, of presenting a fictitious obligation to a financial institution and presenting a false claim to the United States.
Sentencing is set for December 3, 2019, at 10:00 a.m., in United States District Court in Knoxville, Tennessee. Cook faces a sentence of up to 25 years in prison and other possible penalties.
At trial, the jury heard testimony that, in October of 2017, Cook attempted to deposit a false “bill of exchange,” with a face value of $1 million, to the Regions Bank branch in Alcoa. In support of the “bill of exchange,” which had the appearance of a bank check, Cook presented fictitious documents purporting to show that she possessed Treasury bonds worth more than $100 billion. The jury also heard testimony that, in January of 2017, Cook filed a fraudulent federal tax return through which she sought a tax refund of more than $251,000. In addition, the jury heard testimony that Cook had been convicted in 2006 for multiple counts of defrauding the United States through false tax returns on which she fraudulently used the personal information of indigent individuals who purportedly received assistance from Cook’s faith-based organization, Sheep Ministries, Inc.
“The United States Attorney’s Office for the Eastern District of Tennessee applauds the jury’s verdict in this case against an individual seeking to defraud a bank by depositing non-existent funds into a bank account, and enriching herself at taxpayers’ expense by filing a false income tax return,” said U.S. Attorney J. Douglas Overbey. “Our office will continue to prosecute those who attempt to pass off such fraudulent documents in order to enrich themselves at the expense of others.”
Law enforcement agencies participating in the joint investigation which led to the indictment and subsequent conviction of Marilyn Cook included the U.S. Department of Treasury, Office of Inspector General, the Internal Revenue Service, U.S. Secret Service, and the Alcoa Police Department. Assistant U.S. Attorneys Frank M. Dale, Jr. and Jennifer Kolman represented the United States at trial.
Two Grundy County, Tennessee Sheriff’s Officers Charged with Federal Civil Rights OffensesRead the Press Release
Chief Deputy Anthony “Tony” Bean, 59, and Sergeant Anthony “T.J.” Bean, 29, of the Grundy County Sheriff’s Office were indicted today by a federal grand jury in Chattanooga, Tennessee, for using excessive force against arrestees, announced Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division, U.S. Attorney for the Eastern District of Tennessee J. Douglas Overbey, and FBI-Knoxville Special Agent in Charge Troy A. Sowers.
For an incident involving an arrestee identified by the initials F.M., the indictment charges Deputy Chief Tony Bean and Deputy T.J. Bean with one count of deprivation of rights under color of law in violation of 18 U.S.C. § 242. The indictment alleges that the defendants, while serving with the Grundy County Sheriff’s Office, used unreasonable force when they assaulted and injured arrestee F.M. in December 2017.
The indictment additionally charges Tony Bean with one count of deprivation of rights under color of law in violation of 18 U.S.C. § 242 for an incident involving arrestee C.G. The indictment alleges that, while serving as Chief of Police with the Tracy City Police Department, Tony Bean used unreasonable force when he assaulted and injured arrestee C.G. in August 2014.
Each of the counts charging a violation of 18 U.S.C. § 242 carries a maximum penalty of 10 years of imprisonment. An indictment is merely an accusation and each defendant is presumed innocent unless proven guilty.
This case was investigated by the Knoxville Division of the FBI, and is being prosecuted by Trial Attorneys Rebekah J. Bailey and Kathryn E. Gilbert of the Justice Department’s Civil Rights Division and Assistant United States Attorney Perry H. Piper of the United States Attorney’s Office for the Eastern District of Tennessee.
Two Grundy County, Tennessee Sheriff's Officers Charged with Federal Civil Rights OffensesRead the Press Release
WASHINGTON – Chief Deputy Anthony “Tony” Bean, 59, and Sergeant Anthony “T.J.” Bean, 29, of the Grundy County Sheriff’s Office were indicted today by a federal grand jury in Chattanooga, Tennessee, for using excessive force against arrestees, announced U.S. Attorney for the Eastern District of Tennessee J. Douglas Overbey, Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division, and FBI-Knoxville Special Agent in Charge Troy A. Sowers.
The indictment charges Deputy Chief Tony Bean and Deputy T.J. Bean with one count of deprivation of rights under color of law in violation of 18 U.S.C. § 242 for an incident involving an arrestee identified by the initials F.M.. The indictment alleges that the defendants, while serving with the Grundy County Sheriff’s Office, used unreasonable force when they assaulted and injured arrestee F.M. in December 2017.
The indictment additionally charges Tony Bean with one count of deprivation of rights under color of law in violation of 18 U.S.C. § 242 for an incident involving arrestee C.G. The indictment alleges that, while serving as Chief of Police with the Tracy City Police Department,
Tony Bean used unreasonable force when he assaulted and injured arrestee C.G. in August 2014.
Each of the counts charging a violation of 18 U.S.C. § 242 carries a maximum penalty of 10 years of imprisonment. An indictment is merely an accusation and each defendant is presumed innocent unless proven guilty.
This case was investigated by the Knoxville Division of the FBI, and is being prosecuted by Assistant United States Attorney Perry H. Piper of the United States Attorney’s Office for the Eastern District of Tennessee and Trial Attorneys Rebekah J. Bailey and Kathryn E. Gilbert of the Justice Department’s Civil Rights Division.
Knoxville Man Sentenced to 324 Months in Prison for Production and Possession of Child PornographyRead the Press Release
KNOXVILLE, Tennessee - Dustin Schaud Fox, 29, of Knoxville, Tennessee, was sentenced by the Honorable Pamela L. Reeves, Chief U.S. District, to serve 324 months in federal prison for coercing a minor to engage in sexually explicit conduct for the purpose of producing child pornography and for possessing child pornography. Following his imprisonment, Fox will be supervised by the U.S. Probation Office for 20 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 arose after the mother of a 14 year-old girl in Texas informed a local law enforcement agency that an adult male, later identified as Fox, had established an online relationship with her daughter and had directed the minor to record videos of herself engaged in sexually explicit conduct and send them to him through social media.
“This prosecution represents part of our ongoing efforts to work with law enforcement agencies to protect children from persons who would manipulate them online for child pornography,” said J. Douglas Overbey, U.S. Attorney for the Eastern District of Tennessee. U.S. Attorney Overbey encouraged parents to be vigilant concerning the online activities of their children, stating, “These child predators secretly operate from the shadows of the internet, seek out vulnerable minors, pretend to befriend them, and then prey upon the minors’ vulnerability, unbeknownst to the parents.”
The case was investigated locally by the Knoxville Police Department’s Internet Crimes Against Children unit. Assistant U.S. Attorney Matthew T. Morris represented the United States at trial.
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.
Federal Jury Convicts Two of Kidnapping ChargesRead the Press Release
KNOXVILLE, Tenn. – On July 10, 2019, following a three-day trial before Chief Judge Pamela Reeves of the United States District Court for the Eastern District of Tennessee, a jury convicted Josh Small and Joni Amber Johnson of Princeton, West Virginia, of conspiracy to kidnap and kidnapping. Sentencing is set for Joni Amber Johnson on November 25, 2019, at 10:00 a.m. and for Josh Small on December 4, 2019, at 10:00 a.m. in United States District Court in Knoxville, Tennessee.
Both Joni Amber Johnson and Josh Small face a sentence of up to life in prison. There is no parole in the federal prison system.
Evidence at trial revealed that on June 30, 2018, Small and Johnson used a gun to force their way into the home of a 73-year-old Tennessee woman and tied her up. Small and Johnson then stole jewelry, firearms, cash, a knife, and other items from the victim before taking her phone and leaving her with her hands and feet bound. Small and Johnson were later arrested in West Virginia where Small was caught with several items stolen from the victim.
The investigation that led to these convictions was the product of a partnership between the Campbell County Sheriff’s Office; Knox County Sheriff’s Office; Jefferson County Sheriff’s Office; Mercer County, West Virginia, Sheriff’s Office; Virginia State Police; Giles County, Virginia, Sheriff’s Office; Montgomery County, Virginia, Sheriff’s Office; Bland County, Virginia, Sheriff’s Office; the Bureau of Alcohol, Tobacco, and Firearms (ATF); and the Federal Bureau of Investigation (FBI).
Assistant United States Attorneys Alan Kirk and Kevin Quencer represented the United States at trial.
Casey Hannah Howen Sentenced to Serve 14 Years in Prison for Conspiring to Distribute MethamphetamineRead the Press Release
Greeneville, Tenn. – Casey Hannah Howren, 27, of Elizabethton, Tennessee, was sentenced on July 8, 2019, by the Honorable J. Ronnie Greer, Senior U.S. District Court Judge, to serve 14 years in federal prison. Federal sentences cannot be considered for parole.
Howren pleaded guilty in December 2018 for conspiring with Pedro Cortez Gomez and Kayla Leanne Reaves to distribute over 50 grams of methamphetamine.
Pedro Cortez-Gomez, 36, of Greeneville, Tennessee, a citizen of Mexico, was sentenced on April 29, 2019, by Judge Greer to serve 15 years in federal prison.
Kayla Leanne Reaves, 25, of Afton, Tennessee, was sentenced by Judge Greer on April 22, 2019, to serve 41 months in prison.
Agencies involved in this investigation included the Third Judicial District Drug Task Force, Greene County Sheriff’s Department, Carter County Sheriff’s Department, Johnson City Police Department, FBI, ATF and DEA. J. Christian Lampe and Robert M. Reeves, Assistant U.S. Attorneys, represented the United States in court proceedings.
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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A Fourth of July Message from US Attorney J. Douglas OverbeyRead the Press Release
KNOXVILLE, Tenn. - This Thursday brings with it our annual reminder of the inception of our great nation. It began with a statement of unity, a gathering of citizens banding together to put a deeply American sentiment to paper. It was a declaration that our country, belonging to no one but its own citizens, would not quell before the threat of tyranny and of foreign powers. On the fourth of July, we, a nation undivided, were willing to stand together in pursuit of our own freedom and the freedom of generations to come.
The signing of the Declaration of Independence was not the first step towards freedom, nor was it the last, but it serves even today as a resounding moment that the United States of America can still look towards for strength and guidance and remember the ideal of life, liberty, and the pursuit of happiness. It was a brief moment in history with an impact that can be felt even today, and together, as a nation, we celebrate the Declaration of Independence as a milestone, a reminder that the United States is not a country that can be divided.
On this Fourth of July, we as a nation celebrate that unity, that independence from those who would tear us apart. We are America, land of the free and home of the brave. In the words of former Associate Justice of the Supreme Court, Oliver Wendell Holmes, Jr:
“One flag, one land, one heart, one hand, one nation forevermore.”
Best regards
J. Douglas Overbey
United States Attorney
Kenneth Francis Lee Sentenced to 30 Months in Federal Prison for Tax EvasionRead the Press Release
KNOXVILLE, Tenn. - On June 27, 2019, Kenneth Francis Lee, 48, of Sevierville, Tennessee, was sentenced by the Honorable Thomas A. Varlan, U.S. District Judge, to serve 36 months in federal prison for tax evasion and willful failure to file tax returns. Upon his release from prison, Lee will be supervised by the U.S. Probation Office for 3 years. Lee was also ordered to pay $372,531 to the Internal Revenue Service (IRS) in restitution.
Lee waived indictment by a federal grand jury and pled guilty to a bill of information on January 31, 2019. Lee admitted that he disguised income from his businesses, TNDSYS, LLC and Tennessee Data Systems, in order to evade the payment of tax debts that he owed to the IRS. Lee further admitted that he willfully failed to file personal income tax returns in 2014, 2015, and 2016.
This investigation was conducted by the Federal Bureau of Investigation (FBI) and the Criminal Investigation Division of the IRS. Assistant U.S. Attorney Bart Slabbekorn represented the United States in court proceedings.
Mario Ambrosio Lewis Sentenced to Serve 20 Years in Prison for Distribution of Fentanyl Resulting in DeathRead the Press Release
Greeneville, Tenn. – Mario Ambrosio Lewis, 34, of Atlanta, Georgia, was sentenced on June 25, 2019, by the Honorable Leon Jordan, Senior U.S. District Court Judge, to serve 20 years in federal prison. There is no parole in the federal system.
Lewis pleaded guilty in March of 2019 to distributing fentanyl to Calvin Richard Campbell. Campbell admitted to a Bristol PD Detective and an agent of the Second Judicial District Drug Task Force that he had provided the substance, which contained fentanyl, to the victim. Campbell identified Lewis as his heroin supplier and the source of the fentanyl that resulted in the overdose death of a Bristol woman on April 23, 2017, due to acute fentanyl toxicity.
Agents of the Second Judicial District Drug Task Force, Bristol Tennessee Detectives and the Second Judicial District Attorney’s Office began an undercover and financial investigation into Lewis and his drug trafficking and were joined by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and Drug Enforcement Administration (DEA) over the course of the investigation. Campbell pleaded guilty in Sullivan County Criminal Court to 2nd degree murder and was sentenced to 15 years in prison.
United States Attorney J. Douglas Overbey commended investigators on their dedication and tenacity. U.S. Attorney Overbey also noted that, unfortunately law enforcement agencies are facing more and more cases where drug dealers are mixing fentanyl with other illegal drugs to increase profits. This business decision by drug dealers sometimes has deadly consequences. Often users and lower level dealers are not aware that the drugs contain fentanyl.
Since this death occurred, the Drug Overdose Death Task Force has been formed in Sullivan County. The task force is headed by Tennessee Bureau of Investigation (TBI) and funded by grants from the High Intensity Drug Trafficking Areas (HIDTA) Initiative. HIDTA provides federal funds to state and local law enforcement to disrupt and dismantle drug organizations. The District Attorney’s Office and all other law enforcement in Sullivan County have partnered with TBI under this initiative to aggressively identify and target those who place profit above the value of human life. U.S. Attorney Overbey has pledged the continued support of his office and our federal partners in this effort.
Agencies involved in this investigation included the Second Judicial District Drug Task Force, Bristol Tennessee Police Department, the Second Judicial District Attorney Office, ATF and DEA. B. Todd Martin and Robert Reeves, Assistant U.S. Attorneys, represented the United States.
Nearly 1,700 Suspected Child Sex Predators Arrested During Operation “Broken Heart”Read the Press Release
KNOXVILLE, Tenn. – The Department of Justice today announced the arrest of almost 1,700 suspected online child sex offenders during a two-month, nationwide operation conducted by Internet Crimes Against Children (ICAC) task forces. The task forces identified 308 offenders who either produced child pornography or committed child sexual abuse, and 357 children who suffered recent, ongoing or historical sexual abuse or were exploited in the production of child pornography.
The 61 ICAC task forces, located in all 50 states and comprised of more than 4,500 federal, state, local and tribal law enforcement agencies, led the coordinated operation known as “Broken Heart” during the months of April and May 2019. During the course of the operation, the task forces investigated more than 18,500 complaints of technology-facilitated crimes targeting children and delivered more than 2,150 presentations on internet safety to over 201,000 youth and adults. This included a total of 36 arrests by the Tennessee ICAC Task Force, led by the Knoxville Police Department.
"The sexual abuse of children is repugnant, and it victimizes the most innocent and vulnerable of all," Attorney General William P. Barr said. "We must bring the full force of the law against sexual predators, and with the help of our Internet Crimes Against Children program, we will. Over the span of just two months, our ICAC task forces investigated more than 18,000 complaints of internet-related abuse and helped arrest 1,700 alleged abusers. I would like to thank our Office of Justice Programs, all of the task force members, and especially the state and local partners who helped us achieve these important results. We are committed to bringing the defendants in these cases to justice and protecting every American child."
“Sexual predators use the Internet and social media to find children to groom and entice for illicit sexual activity. Parents should be vigilant to protect their children from these would-be child molesters,” said J. Douglas Overbey, U.S. Attorney for the Eastern District of Tennessee. “Our office commends the excellent work of the Tennessee ICAC Task Force in their continued efforts to locate and arrest the perpetrators of these heinous crimes, and then work with our prosecutors to build cases for successful prosecutions.”
The operation targeted suspects who: (1) produce, distribute, receive and possess child pornography; (2) engage in online enticement of children for sexual purposes; (3) engage in the sex trafficking of children; and (4) travel across state lines or to foreign countries and sexually abuse children.
The ICAC Program is funded through the Department’s Office of Juvenile Justice and Delinquency Prevention (OJJDP) within the Office of Justice Programs (OJP). In 1998, OJJDP launched the ICAC Task Force Program to help federal, state and local law enforcement agencies enhance their investigative responses to offenders who use the internet, online communication systems or computer technology to exploit children. To date, ICAC task forces have reviewed more than 922,000 complaints of child exploitation, which have resulted in the arrest of more than 95,500 individuals. In addition, since the ICAC program's inception, more than 708,500 law enforcement officers, prosecutors and other professionals have been trained on techniques to investigate and prosecute ICAC-related cases.
For more information, visit the ICAC Task Force webpage. For state-level Operation Broken Heart results, please contact the appropriate state ICAC task force commander. Contact information for task force commanders is available online.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Matt M. Dummermuth, 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.
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Morristown Resident Sentenced to Serve 18 Years in Federal Prison on Methamphetamine Trafficking and Gun CrimesRead the Press Release
GREENEVILLE, Tenn. – On June 3, 2019, Brandon Lee Alexander, 36 of Morristown, Tennessee, was sentenced by the Honorable J. Ronnie Greer, U.S. District Judge, to serve 216 months in federal prison for possession with the intent to distribute 50 grams or more of methamphetamine; possession with the intent to distribute five grams or more of methamphetamine; possession of a firearm in furtherance of a drug trafficking crime; and possession of a firearm by a convicted felon. Alexander was also denied his request for a new trial.
A jury convicted Alexander following a two-day trial that concluded on February 13, 2019. Evidence presented at trial revealed that detectives with the Morristown Police Department were conducting an investigation into Alexander and traffic stopped him in April 2017, where he was found to possess 28 grams of methamphetamine in his waistband; $11,580 cash; and, a loaded semi-automatic pistol. Alexander was arrested and released on bond the following day. In May 2017, Alexander was stopped again and had found to have 100 grams of methamphetamine in his possession.
Alexander was convicted as part of a case brought against a methamphetamine distribution network that was obtaining high-purity methamphetamine from out of state sources and reselling the drug in east Tennessee. In May 2019, two prominent codefendants were sentenced after pleading guilty to conspiring to distribute 50 grams or more of methamphetamine. Pamela Renee Puckett, 49, of Buford, Georgia was sentenced to serve 210 months in federal prison. Thomas Lynn Martin, 48 of Cosby, Tennessee, was sentenced to 21 years in federal prison.
The investigation leading to the indictment was the product of a partnership between the Morristown Police Department, Hamblen County Sheriff’s Department, Grainger County Sheriff’s Office, Cocke County Sheriff’s Office, Newport Police Department, Third Judicial Drug Task Force, Tennessee Highway Patrol, Appalachian High Intensity Drug Trafficking Area - Rocky Top Task Force, Third Judicial District Attorney General’s Office, Fourth Judicial District Attorney General’s Office, U.S. Marshals Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Federal Bureau of Investigation. Assistant U.S. Attorneys Thomas A. McCauley and J. Christian Lampe 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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Larry Steven Covington Jr. Sentenced to Serve 15 Years in Federal Prison for Assaulting a Federal Officer, Illegally Possessing a Firearm and Failure to SurrenderRead the Press Release
KNOXVILLE, Tenn. - On May 29, 2019, Larry Steven Covington Jr., 40, of Knoxville, Tennessee, was sentenced by the Honorable Thomas W. Phillips, Senior U.S. District Court Judge, to serve 180 months in federal prison. Covington pleaded guilty on May 28, 2019, to an information charging him with assault upon a federal officer, possession of a firearm by a convicted felon and failure to surrender for service of sentence.
According to the plea agreement on file with U.S. District Court, in April 2018, Covington was sentenced in U.S. District Court to serve 46 months in federal prison. He was released on bond pending designation by the federal Bureau of Prison (BOP). A few days after his sentencing hearing, he received a letter from BOP instructing him to report to FCI Berkley in West Virginia on May 2, 2018. Covington signed the letter at the U.S. Marshals Service acknowledging his report date. However, on May 2, 2018, Covington failed to report to FCI Berkley and a warrant was issued for his arrest.
On July 2, 2018, Covington and his girlfriend, Pennie Smith, drove to the U.S. Post Office on Weisgarber Road in Knoxville to pick up a package. Smith had been harboring Covington since he failed to report to BOP custody. Deputy U.S. Marshals had previously received a tip that Covington would be at the post office and were surveilling the parking. Smith went into the post office to retrieve the package while Covington waited in the vehicle. Deputy U.S. Marshals surrounded the vehicle, identified themselves as law enforcement, and ordered Covington out of the car. Instead of exiting, Covington drove forward onto the sidewalk in an attempt to get away. A Deputy U.S. Marshal blocking the sidewalk was forced to jump out of the direct line of the vehicle to avoid being struck. Covington fled in the vehicle and drove at speeds close to 100 mph until he reached his mother’s neighborhood and fled to a friend’s house who allowed him to hide in his crawl space. Covington was ultimately located in the crawl space by law enforcement and taken into custody. A search of his vehicle turned up three guns and ammunition.
This investigation was conducted by the U.S. Marshal Service and FBI. Assistant U.S. Attorney Jennifer Kolman represented the United States in court proceedings.
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Couple Sentenced to Serve Lengthy Term in Federal Prison in Methamphetamine Conspiracy and Firearm ChargesRead the Press Release
GREENEVILLE, Tenn. – On May 20, 2019, Greg Fessell, 47, and his wife Patricia Sciaca [Fessell], 46, of Kingsport, Tennessee, were sentenced by the Honorable J. Ronnie Greer, U.S. District Judge, for their roles in a conspiracy to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking offense. Greg Fessel was sentence to serve 223 months in federal prison. Patricia Sciaca [Fessell] was sentenced to serve 206 months in federal prison. The couple was also ordered to each pay a $340,000 money judgment, which represented the proceeds of their sale of methamphetamine.
In February 2018, agents preparing to execute a search warrant at the Fessell residence performed traffic stops on Fessell and Sciacca as they left their residence in separate vehicles. A search of the vehicles and residence resulted in the recovery of over 500 grams of methamphetamine, 55 firearms, and $39,597 cash. In November 2018, both pleaded guilty for conspiracy to distribute methamphetamine and possession of a firearm.
The investigation into the Fessell’s drug trafficking activity was part of a broader investigation conducted by partnering local, state, and federal law enforcement agencies tasked with combatting methamphetamine distribution in the region. Law enforcement agencies participating in the investigation included the Sullivan County Sheriff’s Office, Kingsport Police Department, Tennessee’s 2nd Judicial Drug Task Force, Johnson City Police Department, Washington County Sheriff’s Office, Tennessee Highway Patrol, Tennessee Bureau of Investigation, Drug Enforcement Administration, and U.S. Homeland Security Investigations. Assistant U.S. Attorney Christian Lampe represented the United States in court proceedings.
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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Chicago Based “Prince” of Mafia Insane Vice Lords Sentenced for Distributing HeroinRead the Press Release
CHATTANOOGA, Tenn. – On May 15, 2019, the Honorable Curtis L. Collier, Senior United States District Judge, sentenced James Silas to 30 years followed by 5 years of supervised release for conspiring to distribute heroin.
Beginning in 2016, the Drug Enforcement Administration (DEA) conducted a series of court-authorized wiretaps on a number of telephones belonging to gang members as a component of an investigation into heroin distribution in and around Chattanooga. Through these wiretaps, they discovered the involvement of Silas in this interstate conspiracy. Silas was arrested in Illinois and brought to the Eastern District of Tennessee for trial. On November 13, 2018, after a five-day jury trial, Silas, 51, of the Chicago suburb of Dolton, Illinois, was convicted as charged of conspiring to distribute one kilogram or more of heroin.
At the sentencing hearing, witnesses testified that Silas was the leader of the Mafia Insane Vice Lords, a nationwide violent street gang. As the “Prince” of the Mafia Insane Vice Lords, Silas used the gang to develop a network of heroin distributors in various cities, including Chattanooga, Knoxville, Memphis, Atlanta and elsewhere. Silas provided his subordinate gang members with what came to be known as “Chicago Gray,” a form of heroin that rapidly became highly desired among users. These subordinates sold the heroin to other drug dealers as well as to addicts. Witnesses testified that tens of thousands of dollars at a time were transported from Tennessee to Silas’ Illinois residence in payment for heroin. Judge Collier ordered the defendant to forfeit $600,000, representing proceeds of Silas’ illegal drug trafficking.
“The Eastern District of Tennessee is experiencing a surge in drug abuse and overdose related deaths,” said U.S. Attorney J. Douglas Overbey. “Today’s sentencing is an example of how our office is working with our law enforcement partners to prosecute those who are trafficking in and distributing these illegal drugs into our region, putting the citizens of East Tennessee in danger.”
“The Drug Enforcement Administration and our law enforcement partners remain committed to targeting interstate heroin traffickers and gang members that are contributing to the nation’s opioid epidemic,” said Brett R. Pritts, Assistant Special Agent in Charge of DEA’s Nashville District Office. “I commend our law enforcement partners and the prosecutors for their extraordinary efforts in this case.”
This investigation was conducted by the DEA, in conjunction with the Hamilton County Sheriff’s Office, and with the assistance of local and federal law enforcement agencies in the Chicago area. Assistant U.S. Attorney Kyle Wilson represented the United States at sentencing.
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U.S. Attorney J. Douglas Overbey Recognizes Police WeekRead the Press Release
KNOXVILLE, Tenn. - United States Attorney J. Douglas Overbey recognized the service and sacrifice of federal, state, local, and tribal police officers on the occasion of National Police Week, which is being observed Sunday, May 12, to Saturday, May 18, 2019.
The U.S. Attorney’s office held the annual Gatlinburg Law Enforcement Conference last week, which opened with a moving tribute to fallen officers not only in the Eastern District of Tennessee but also for each of the 17 cosponsoring U.S. Attorney’s districts. Included in this tribute were Chattanooga Police Officer Nicholas Scott Grainger, EOW February 24, 2019; and, Sergeant Steve Hinkle with the Sullivan County Sheriff’s Office, EOW February 26, 2018. Both were valued members of the law enforcement community in the Eastern District of Tennessee.
In October 1962, Congress enacted a joint resolution, which the President signed, declaring May 15th as National Peace Officers Memorial Day to honor law enforcement officers killed or disabled in the line of duty. The resolution also created National Police Week as an annual tribute to law enforcement service and sacrifice.
“National Police Week is a time for all of us to reflect upon and celebrate the contributions of police officers from around the country, recognizing their hard work, dedication, loyalty, and commitment in keeping our communities safe. As the United States Attorney for the Eastern District of Tennessee, I want to thank all of our federal, state, local, and tribal law enforcement officers, who often face uncertain and dangerous situations, and ensure them that they have the unwavering support and appreciation from the U.S. Attorney’s office,” said U.S. Attorney Overbey.
According to statistics reported to the FBI, 106 law enforcement officers were killed in line-of-duty incidents in 2018.
Comprehensive data tables about these incidents and brief narratives describing the fatal attacks are included in the sections of Law Enforcement Officers Killed and Assaulted, 2018 https://ucr.fbi.gov/leoka/2018/ released this week by the FBI.
The names of all 106 fallen officers nationwide will be formally dedicated on the National Law Enforcement Officers Memorial in Washington, DC, during the 31st Annual Candlelight Vigil on the evening of May 13, 2019. No tickets are required, and everyone is welcome. For additional information please call 202-737-3400.
The Candlelight Vigil is one of many commemorative events taking place in the nation’s capital during National Police Week 2019.
For more information about other National Police Week events, please visit www.policeweek.org.
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Robert Edward Kinsler Sentenced to Serve 151 Months in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
GREENEVILLE, Tenn. – On May 6, 2019, Robert Edward Kinsler, 49, of Bean Station, Tennessee, was sentenced by the Honorable Pamela L. Reeves, Chief U.S. District Court Judge, to serve 151 months in federal prison.
Kinsler pleaded guilty in February 2019 to conspiring with codefendants Stephen Earl Mayes, 62, of Morristown Tennessee; Wendy Kaye Warf, 40, of Morristown, Tennessee; Jacob Christian Carter, 33, of Rogersville, Tennessee; and others, to distribute methamphetamine.
Carter is scheduled to be sentenced on May 13, 2019. Sentencing for Warf is set for July 15, 2019. Sentencing for Mayes is set for June 20, 2019.
Agencies involved in this investigation included the Hamblen County Sheriff’s Department and the FBI. Assistant U.S. Attorney Robert Reeves represented the United States in court proceedings.
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Pedro Cortez-Gomez Sentenced to Serve 15 Years in Prison for Conspiring to Distribute MethamphetamineRead the Press Release
GREENEVILLE, Tenn. – On April 29, 2019, Pedro Cortez-Gomez, 36, of Greeneville, Tennessee, a citizen of Mexico, was sentenced by the Honorable J. Ronnie Greer, Senior U.S. District Court Judge, to serve 15 years in federal prison for his role in a methamphetamine distribution conspiracy. Since Cortez-Gomez was residing in the United States illegally, he faces deportation after serving his sentence in federal prison.
Cortez-Gomez pleaded guilty in January 2019 to conspiring with his girlfriend Kayla Leanne Reaves, 25, of Afton, Tennessee; Casey Hannah Howren, 27, of Elizabethton, Tennessee; and others, to distributing between 1.5 and 4.5 kilograms of actual methamphetamine or “Ice.”
On April 22, 2019, Reaves was sentenced by Judge Greer to serve 41 months in federal prison for her role in the conspiracy. Sentencing for Howren is set for July 8, 2019.
Agencies involved in this investigation included Third Judicial District Drug Task Force, Greene County Sheriff’s Department, Greeneville Police Department, Elizabethton Police Department, Johnson City Police Department, Tennessee National Guard - Counterdrug Task Force, U.S. Immigration and Customs Enforcement-Enforcement and Removal Operations, FBI and ATF. Assistant U.S. Attorneys Christian Lampe and Robert Reeves represented the United States in court proceedings.
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 Grand Jury Indicts Fifteen in Heroin and Fentanyl Distribution ConspiracyRead the Press Release
KNOXVILLE, Tenn. – On April 9, 2019, a federal grand jury in Greeneville returned a three-count indictment against the following individuals for their roles in the distribution of heroin and fentanyl:
- Deandre Roy Haliburton, 31, of Detroit, Michigan
- Deshawn Dwayne Thomas, 25, of Detroit, Michigan
- Daryl Alvito Reese, 27, of Detroit, Michigan
- Delmeko Desean Vaughn, 24, of Detroit, Michigan
- Deandre Eric Williams, 24, of Detroit, Michigan
- Joshua Gould, 35, of Warren, Michigan
- Leon Walton II, 33, of Detroit, Michigan
- Nidia Marie Santiago, 25, of Detroit, Michigan
- Shakeela Myon Bradley, 29, of Detroit, Michigan
- Lovey Shresse Ingram, 31, of Detroit, Michigan
- Lareitha Lucretia Haliburton, 25, of Detroit, Michigan
- Ann Margaret Isabell, 25, of Detroit, Michigan
- Ashley Nicole Johnson, 26, of Port Huron, Michigan
- Tamar Victor Frost, 24, of Detroit, Michigan
The indictment, which was recently unsealed and is on file with the U.S. District Court, alleges that each of these individuals was involved in a conspiracy to distribute 100 grams or more of heroin and/or 40 grams or more of fentanyl in the Eastern District of Tennessee and elsewhere. Gould, Walton, and Bradley are also charged with money laundering. Thomas is charged with the distribution of fentanyl that resulted in the overdose death of a victim.
Trial is currently set for June 11, 2019, in U.S. District Court in Knoxville, before the Honorable Thomas A. Varlan, U.S. District Judge.
If convicted of the heroin and fentanyl distribution conspiracy charge, each faces a minimum mandatory term of at least five years and up to 40 years in prison, at least four years of supervised release, and a fine of up to $5,000,000.
If convicted of the distribution of fentanyl resulting in the death of a victim charge, Thomas faces a mandatory minimum sentence of 20 years in prison, with a possible sentence of up to life, at least four years of supervised release, and a fine of up to $8,000,000.
The ongoing investigation leading to the indictment was the product of a partnership between the Tennessee Bureau of Investigation, Fourth Judicial District Drug Task Force, Jefferson County Sheriff’s Department, Fifth Judicial District Drug Task Force, Blount County Sheriff’s Department, Maryville Police Department, Alcoa Police Department, Sevier County Street Crimes, Sevierville Police Department, Sevier County Sheriff’s Department, Knox County Sheriff’s Department, Knoxville Police Department, Ninth Judicial District Drug Task Force, Ohio State Highway Patrol, Wood County, Ohio, Prosecutor’s Office, FBI, ATF, IRS-Criminal Investigation, and DEA. Assistant U.S. Attorney Kevin Quencer will represent the United States in court proceedings.
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.
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 Grand Jury Indicts Eleven in Heroin and Fentanyl Distribution ConspiracyRead the Press Release
KNOXVILLE, Tenn. – On April 2, 2019, a federal grand jury in Knoxville returned a single count indictment against the following individuals for their roles in the distribution of heroin and fentanyl in the Eastern District of Tennessee and elsewhere:
- Darrle Wade Harris, 54, of Knoxville, Tennessee
- Cordarryl Wade Harris, 27, of Knoxville, Tennessee
- Ronald Anthony Thompson, 29, of Detroit, Michigan
- DeAirrus Jamar Taylor, 28, of Plymouth, Michigan
- Deshawn Lee Greene, 24, of Detroit, Michigan
- Jamal Mylen McDonald, 22, of Detroit, Michigan
- Raynell Eugene McDonald, 49, of Detroit, Michigan
- Raphiel Antwon Thompson, 28, of Detroit, Michigan
- Robert Lee-Rogener McDonald, 28, of Romulus, Michigan
- Keith Madison, 53, of Detroit, Michigan
- Sherard Ramon Taylor, 32, of Detroit, Michigan
The indictment, which was recently unsealed and is on file with U.S. District Court, alleges that each of these individuals was involved in a conspiracy to distribute 100 grams or more of heroin and/or 40 grams or more of fentanyl in the Eastern District of Tennessee and elsewhere.
Trial is currently set for June 18, 2019, before the Honorable Thomas A. Varlan, U.S. District Judge.
If convicted of the heroin and fentanyl distribution conspiracy charge, each faces a minimum mandatory term of at least five years and up to 40 years in prison, at least four years of supervised release, and a fine of up to $5,000,000.
The ongoing investigation leading to the indictment was the product of a partnership between the Tennessee Bureau of Investigation, Fourth Judicial District Drug Task Force, Jefferson County Sheriff’s Department, Fifth Judicial District Drug Task Force, Blount County Sheriff’s Department, Maryville Police Department, Alcoa Police Department, Sevier County Street Crimes, Sevierville Police Department, Sevier County Sheriff’s Department, Knox County Sheriff’s Department, Knoxville Police Department, Ninth Judicial District Drug Task Force, Ohio State Highway Patrol, Wood County, Ohio, Prosecutor’s Office, FBI, ATF, IRS-Criminal Investigation, and DEA. Assistant U.S. Attorney Kevin Quencer will represent the United States in court proceedings.
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.
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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Former Grundy County, Tennessee, Sheriff’s Deputy Charged with Civil Rights Offense and Making False StatementsRead the Press Release
Gregory Higgins, 42, was indicted today for using excessive force against an arrestee while Higgins was a deputy with the Grundy County, Tennessee, Sheriff’s Office, announced Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division, U.S. Attorney for the Eastern District of Tennessee J. Douglas Overbey, and FBI Knoxville Special Agent in Charge Troy A. Sowers.
Higgins is charged with one count of deprivation of rights under color of law and one count of making false statements to the FBI. The indictment alleges that Higgins used unreasonable force when he assaulted handcuffed arrestee A.L., resulting in bodily injury to A.L., and that Higgins then made false statements to the FBI about the assault.
The first count carries a maximum penalty of 10 years of imprisonment while the second count carries a maximum penalty of five years. An indictment is merely an accusation and the defendant is presumed innocent unless proven guilty.
This case was investigated by the Knoxville Division of the FBI, and is being prosecuted by Trial Attorney Kathryn E. Gilbert of the Department of Justice’s Civil Rights Division and Assistant United States Attorney Perry H. Piper.
Federal Grand Jury Indicts 15 Individuals for Heroin and Fentanyl Conspiracy in Knoxville and Surrounding CountiesRead the Press Release
KNOXVILLE, Tenn. – On April 16, 2019, a federal grand jury in Knoxville returned an eight-count indictment against Damion Knox, 34, Darnez Turner, 30, Jeremiah Johnson, 23, and Papa Diop, 23, all of Detroit, Michigan; Joshua Cooper, 37, Virgil Crawford, 45, Jessica Bouvier, 30, Stephen Bouvier, 38, Jama Collier, 23, and Tina Berry, 55, all of Knoxville, Tennessee; and, five individuals not yet in federal custody at the time of this release. This case has been set for trial on July 1, 2019.
The indictment, on file with the U.S. District Court, alleges that between May 2018 and April 15, 2019, the 15 individuals conspired to distribute and possessed with intent to distribute a mixture and substance containing 400 grams or more of a detectable amount of fentanyl, a Schedule II controlled substance, and one kilogram or more of a detectable amount of heroin, a Schedule I controlled substance. The indictment also alleges a money laundering charge and other drug related charges for a number of the defendants.
If convicted for conspiracy to distribute and possession with intent to distribute these controlled substances, each faces a mandatory minimum of at least 10 years and up to life in prison, five years of supervised release, a fine of up to $10,000,000, any applicable forfeiture, and a $100 special assessment.
The investigation was led by the Appalachian High Intensity Drug Trafficking Area’s Drug Related Death Task Force and the Organized Crime Unit of the Knoxville Police Department (KPD). Assisting in the investigation and seizure of evidence were various other divisions of KPD, Drug Enforcement Administration, Tennessee Bureau of Investigation, Knox County Sheriff’s Office, Fifth Judicial District Drug Task Force, Knox County District Attorney’s Office and 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. Knox County, Tennessee, has been designated as one of those hot spots.
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.
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DEA Prepares for Prescription Drug Take back DayRead the Press Release
KNOXVILLE, Tenn. – United States Attorney J. Douglas Overbey wants to encourage the public to participate in the Drug Enforcement Administration’s (DEA) 17th National Prescription Drug Take back Day on Saturday, April 27, 2019. The biannual event will be held from 10:00 a.m. to 2:00 p.m., at thousands of collection sites around the country, including several here in the Eastern District of Tennessee. The event is an effort to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs.
“Over the past decade, the death toll from prescription painkillers has tripled. Every year, more people die from prescription painkiller overdoses than from heroin, cocaine, or any other illegal drug,” said U.S. Attorney Overbey. “Adolescents and young adults are especially vulnerable because many teens that begin abusing prescription drugs turn to heroin for a cheaper high. Please take this opportunity to check your medicine cabinets and take advantage of DEA Prescription Drug Take back Day to dispose of any unused, unwanted, and expired medicine safely.”
“At a time when prescription opioid pain relievers are killing more Americans than car accidents, the National Prescription Drug Take-Back Day is an easy way we can all make sure that our unneeded, unused, or expired medications don’t end up in the wrong hands,” said D. Christopher Evans, Special Agent In Charge of DEA’s Louisville Field Division.
Last October Americans turned in 457 tons (900,000 pounds) of prescription drugs at almost 6,000 sites operated by the DEA and more than 4,800 of its state and local law enforcement partners. Overall, in its 16 previous Take Back events, DEA and its partners have taken in over 11 million pounds—more than 5,400 tons—of pills. The disposal service is free and anonymous, no questions asked. (The DEA cannot accept liquids, needles, or sharps, only pills or patches.)
Rates of prescription drug abuse in the United States are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. According to the Centers for Disease Control and Prevention, 91 Americans die each day from an opioid overdose. Some painkiller abusers move on to heroin: Four out of five new heroin users started with painkillers.
Flushing medications down the toilet or throwing them in the trash pose potential safety and health hazards. This initiative addresses the public safety and public health issues that surround medications languishing in home cabinets, becoming highly susceptible to diversion, misuse, and abuse.
For more information or to locate a collection site near you, go the DEA Prescription Drug Take Back Day web site at https://takebackday.dea.gov/#collection-locator where you can search by zip code, city, or state.
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National Appalachian Regional Prescription Opioid Strike Force Takedown Includes Charges Against Eight Health Care Professionals in the Eastern District of TennesseeRead the Press Release
KNOXVILLE, Tenn. – Attorney General William P. Barr and Department of Health and Human Services (HHS) Secretary Alex M. Azar III, together with multiple law enforcement partners, today announced enforcement actions involving 60 charged defendants across 11 federal districts, including 31 doctors, 7 pharmacists, 8 nurse practitioners, and 7 other licensed medical professionals, for their alleged participation in the illegal prescribing and distributing of opioids and other dangerous narcotics and for health care fraud schemes. In addition, HHS announced today that since June 2018, it has excluded over 2,000 individuals from participation in Medicare, Medicaid, and all other Federal health care programs, which includes more than 650 providers excluded for conduct related to opioid diversion and abuse. Since July 2017, DEA has issued 31 immediate suspension orders, 129 orders to show cause, and received 1386 surrenders for cause nationwide for violations of the Controlled Substances Act.
“The opioid epidemic is the deadliest drug crisis in American history, and Appalachia has suffered the consequences more than perhaps any other region,” Attorney General William P. Barr said. “But the Department of Justice is doing its part to help end this crisis. One of the Department's most promising new initiatives is the Criminal Division's Appalachian Regional Prescription Opioid Strike Force, which began its work in December. Just four months later, this team of federal agents and 12 prosecutors has charged 60 defendants for alleged crimes related to millions of prescriptions. I am grateful to the Criminal Division, their U.S. Attorney partners, and to the members of the strike force for this outstanding work that holds the promise of saving many lives in Appalachian communities.”
In the Eastern District of Tennessee, a total of eight individuals, including five doctors, a nurse practitioner, a physician’s assistant, and an office manager were charged in four cases. Four doctors, a nurse practitioner and a physician’s assistant were charged with the unlawful distribution of opioids. Two doctors were charged with health care fraud violations. Three of these cases relate to alleged pill mill operations in the Eastern District of Tennessee.
Included in the charges announced today are the following indictments, which are on file with the U.S. District Court for the Eastern District of Tennessee:
On April 2, 2019, a federal grand jury returned an indictment against Dr. Charles Brooks, 61, of Maryville, Tennessee, charging him with one count of conspiracy to distribute Schedule III, IV and V drugs as well as one count of healthcare fraud for aiding and abetting a false statement related to health care matters.
This case was investigated by the FBI and HHS-OIG. Assistant U.S. Attorney Anne-Marie Svolto will represent the United States in court proceedings.
On April 16, 2019, a federal grand jury returned an indictment against Dr. Stephen Mynatt, 64, of Knoxville Tennessee, and Dr. David Newman, 58, of Maryville, Tennessee, charging them with conspiracy to distribute Schedule II controlled drugs. Mynatt was also charged with two counts of distribution of Schedule II drugs. Both Mynatt and Newman were affiliated with Tennessee Valley Pain Specialists.
This case was investigated by the FBI, HHS-OIG, DEA, and TBI. Assistant U.S. Attorney Anne-Marie Svolto, along with DOJ Trial Attorneys Drew Bradylyons and Louis Manzo, will represent the United States in court proceedings.
On April 16, 2019, a federal grand jury returned an indictment against Dr. Henry Babenco, 58, of Paducah, Kentucky; Sharon Naylor, 53, of Jacksboro, Tennessee; Alicia Taylor, 29, of Oneida, Tennessee; and Gregory Madron, 54, of Jacksboro, Tennessee, charging all of them with conspiracy to distribute Schedule II controlled drugs. Naylor and Babenco were also charged with money laundering. Babenco, Naylor, Taylor, and Madron were all associated with LaFollette Wellness Center.
This case was investigated by the DEA and IRS-Criminal Investigations. Assistant U.S. Attorney Anne-Marie Svolto, along with DOJ Trial Attorney Scott Armstrong, will represent the United States in court proceedings.
On April 16, 2019, a federal grand jury indicted Dr. Harrison Yang, 75, of Manchester, Tennessee, with healthcare fraud violations.
This case was investigated by the FBI, HHS-OIG, DEA, and TBI. Assistant U.S. Attorney Anne-Marie Svolto, along with DOJ Trial Attorneys Drew Bradylyons and Louis Manzo, will represent the United States in court proceedings.
“Unfortunately, the Appalachian Region, which includes the Eastern District of Tennessee, is experiencing a surge in drug abuse and overdose related deaths,” said U.S. Attorney J. Douglas Overbey. “Today is an example of how our office is working with our law enforcement partners in the Appalachian Regional Prescription Opioid Strike Force to identify and prosecute dishonest medical professionals and others engaged in health care fraud schemes involving illegal prescription, distribution, possession, and use of opioids.”
Troy Sowers, Special Agent in Charge, Federal Bureau of Investigation, Knoxville Division said, "Today's arrests clearly and tragically illustrate these so-called medical professionals were not legitimately assisting their patients - they were contributing to the opioid crisis epidemic that has destroyed families and taken so many lives. Not only were they engaging in criminal behavior, they were profiting from the addiction and pain of unsuspecting victims. Working alongside our partners, HHS, DEA, TBI, THP, and many other state and local agencies, we will continue to vigorously pursue anyone involved in trafficking opioids in this country while protecting the public's health and welfare.”
“The Drug Enforcement Administration and our law enforcement partners remain committed to targeting unscrupulous medical practitioners who choose profits over patients,” said D. Christopher Evans, Special Agent in Charge of DEA’s Louisville Field Division. “We will never stop fighting for those who have been rendered helpless by America’s on-going opioid crisis.”
“Opioid fraud schemes have hit the Appalachian region particularly hard, resulting in staggering numbers of addiction, overdoses and deaths of individuals to include Medicare and Medicaid beneficiaries,” said Special Agent in Charge Derrick J. Jackson of the Department of Health and Human Services Office of Inspector General. “Working hand-in-hand with our law enforcement partners, our agents will continue to address this devastating epidemic by thoroughly investigating corrupt providers who contribute to the ongoing opioid crisis and threaten the health and well-being of patients, as alleged in these cases.”
“The health and well-being of Tennesseans is of the utmost of importance to the TBI and our law enforcement partners. It’s through efforts like this that we are able to further work toward attacking the opioid crisis and the effects it has on our residents,” said David Rausch, Director, Tennessee Bureau of Investigation.
In addition to the cases announced today, Attorney General Barr and U.S. Attorney Thomas T. Cullen announced today that the ARPO Strike Force will expand into the Western District of Virginia, making it the tenth ARPO Strike Force district. ARPO is a joint law enforcement effort that brings together the resources and expertise of the Health Care Fraud Unit in the Criminal Division’s Fraud Section (HCF Unit), the U.S. Attorney’s Offices for ten federal districts in six states, as well as law enforcement partners at the FBI, HHS Office of the Inspector General (HHS-OIG) and U.S. Drug Enforcement Administration (DEA). In addition, the operation includes the participation of the Tennessee Bureau of Investigation and multiple State Medicaid Fraud Control Units. The mission of the ARPO Strike Force is to identify and investigate health care fraud schemes in the Appalachian region and surrounding areas, and to effectively and efficiently prosecute medical professionals and others involved in the illegal prescription and distribution of opioids.
The charges announced today involve individuals contributing to the opioid epidemic, with a particular focus on medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a priority for the Department. According to the CDC, approximately 115 Americans die every day of an opioid-related overdose.
The ARPO Strike Force is made up of prosecutors and data analysts with the HCF Unit, prosecutors with the ten U.S. Attorney’s Offices in the region, including the newly added Western District of Virginia, and special agents with the FBI, HHS-OIG and DEA. The ARPO Strike Force operates out of two hubs based in the Cincinnati, Ohio/Northern Kentucky and Nashville, Tennessee, areas, supporting the ten districts that make up the ARPO Strike Force region. In addition, the APRO Strike Force works closely with other state and federal law enforcement agencies, including the Tennessee Bureau of Investigation, State Medicaid Fraud Control Units.
The case against Babenco, Naylor, Taylor, and Madron was also 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.
For any patients impacted by the law enforcement operations, DOJ, DEA, HHS-OIG, HHS’ Substance Abuse and Mental Health Services Administration, CDC’s Opioid Rapid Response Team and all five State Departments of Health are deploying federal and state-level strategies to address patient harm and insure continuity of care. Additional information regarding available treatment programs and where patients can turn for assistance is available in Tennessee as follows:
- For a referral to addiction treatment services, call the Tennessee REDLINE: 800-889-9789.
- In a mental health crisis, call the Statewide Crisis Line: 855-CRISIS-1 (855-274-7471).
- For help accessing substance abuse or mental health services call the Tennessee Department of Mental Health and Substance Abuse Services Helpline: 800-560-5767 or 615-532-6700. This line is staffed Monday-Friday, 8 a.m. - 4:30 p.m. CT.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. The Medicare Fraud Strike Force, including the ARPO Strike Force, has charged more than 200 individuals with opioid-related crimes.
If you, a family member, friend or loved one believe you may be a victim in any of these cases or in connection with any charged defendant, please visit the following website for additional information: https://www.justice.gov/criminal-vns/case/ARPO
Additional documents related to this announcement are available here: https://www.justice.gov/opa/documents-and-resources-april-17-2019-press-conference
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Chevez McCray and Hector Mendez-Sales Sentenced to Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
GREENEVILLE, Tenn. – On April 15, 2019, Chevez McCray, 35, of Morristown, Tennessee, and Hector Mendez-Sales a/k/a Oswaldo Sanchez, 34, a citizen of Guatemala residing in Talbott, Tennessee, were sentenced by the Honorable J. Ronnie Greer, Senior U.S. District Court Judge, for their roles in a methamphetamine distribution conspiracy.
Both McCray and Sales-Mendez pleaded guilty December 2018 to conspiring with each other to distribute methamphetamine. Sales–Mendez was also convicted of illegally reentering the United States after having being deported. McCray was sentenced to serve 276 months in federal prison. Mendez Sales was sentenced to 151 months in federal prison.
Agencies involved in this investigation included the Hamblen County Sheriff’s Department, Jefferson County Sheriff’s Department, FBI, and U.S. Department of Homeland Security, Immigration and Customs Enforcement. Assistant U.S. Attorneys William Roach and Robert Reeves represented the United States.
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Knoxville Resident Sentenced to 10 Years in Federal Prison for Enticement of a Minor for Illegal Sexual ActivityRead the Press Release
KNOXVILLE, Tenn. – On April 9, 2019, James Michael Hood, 55, of Knoxville, Tennessee, was sentenced by the Honorable Thomas A. Varlan, U.S. District Court Judge, to serve 10 years and one month in federal prison. Upon his release from prison, Hood will be supervised by the U.S. Probation office for life.
After a jury trial in September 2018, Hood was convicted of enticement of a minor for illegal sexual activity. According to evidence revealed during the trial, in June 2017, Hood attempted to communicate with the 17-year-old female victim by friending her on Facebook. The victim blocked him after less than a day of him sending her inappropriate messages. The victim and her mother reported the inappropriate messages to law enforcement, who initiated an undercover operation posing as the young girl. Hood was provided with a phone number to use if he wanted to text the victim. Believing he was communicating with the young girl, within two minutes of receiving the number, he began texting her. Within 48 hours, he was sending her explicit sexual messages. Hood set up a meeting with the victim; however, instead of being met by the victim, he was met by law enforcement and arrested.
Agencies involved in this investigation included Knoxville Police Department Internet Crimes against Children Task Force, in partnership with the Department of Homeland Security. Jennifer Kolman, Assistant U.S. Attorney represented the United States.
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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Justice Department Observes National Crime Victims’ Rights Week with Events Throughout the CountryRead the Press Release
KNOXVILLE, Tenn. – In observance of National Crime Victims’ Rights Week, April 7-13, 2019, the U.S. Attorney’s Office for the Eastern District of Tennessee will be participating in several events across the district including:
- A bell ringing ceremony to honor victims of crime, “Honoring Our Past – Creating Hope for the Future,” at Chester Foster Park in Chattanooga on Tuesday, April 9, 2019.
- A Crime Victims’ Right Ceremony at the Cocke County Courthouse on Wednesday, April 10, 2019, sponsored by Fourth Judicial District Attorney General James Dunn.
- A Crime Victims’ Tree Planting Ceremony on Friday, April 12, 2019, at Memorial Park Community Center in Johnson City, Tennessee.
“Victims of crime deserve justice. This Department works every day to help them recover and to find, prosecute, and convict those who have done them harm,” said Attorney General William P. Barr. “During this National Crime Victims’ Rights Week, we pause to remember the millions of Americans who have been victims of crime and we thank public servants who have served them in especially heroic ways. This week the men and women of the Department recommit ourselves once again to ensuring that crime victims continue to have a voice in our legal system, to securing justice for them, and to preventing other Americans from suffering what they have endured."
“National Crime Victims’ Rights Week is a time to reflect on the history of the victims’ rights movement, celebrate its progress, and renew commitments to ensure all victims of crime have the rights and services they need to recover and receive the justice they deserve,” said U.S. Attorney J. Douglas Overbey. “The U.S. Attorney’s Office has dedicated victim-witness personnel who serve federal crime victims across the district’s 41 counties. Our prosecutors are also committed to supporting and providing service to victims of all federal crimes, including violent crimes, fraud, identity theft, human trafficking, elder abuse and exploitation, and sexual crimes against children.”
Each year in April, the Department of Justice and U.S. Attorneys’ offices observe National Crime Victims’ Rights Week nationwide by taking time to honor victims of crime and those who advocate on their behalf. In addition, the Justice Department and U.S. Attorneys’ offices organize events to honor the victims and advocates, as well as bring awareness to services available to victims of crime. This year’s observance takes place April 7-13, with the theme: Honoring Our Past. Creating Hope for the Future.
The U.S. Department of Justice will host the Office for Victims of Crime’s annual National Crime Victims’ Service Awards Ceremony in Washington, D.C. on April 12, 2019, to honor outstanding individuals and programs that serve victims of crime.
The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime.
The Office of Justice Programs provides innovative leadership to federal, state, local, and tribal justice systems, by disseminating state-of-the art knowledge and practices across America, and providing grants for the implementation of these crime-fighting strategies. Because most of the responsibility for crime control and prevention falls to law enforcement officers in states, cities, and neighborhoods, the federal government can be effective in these areas only to the extent that it can enter into partnerships with these officers. More information about the Office of Justice Programs and its components can be found at www.ojp.gov. More information about Crime Victim’s Rights Week can be found at https://ovc.ncjrs.gov/ncvrw/. You may also contact the U.S. Attorney’s Victim Witness Program at 865-545-4167.
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Federal Grand Jury Indicts Two Sevierville Residents for Fentanyl Distribution Resulting in Death of Kodak ResidentRead the Press Release
KNOXVILLE, Tenn. – On March 19, 2019, a federal grand jury in Knoxville returned a one-count indictment against Stacey Edward Williams, Jr., 39, of Sevierville, Tennessee, and Joshua Michael Catlett, 29, of Sevierville, Tennessee.
The indictment, on file with the U.S. District Court, alleges that Williams and Catlett distributed a quantity of a mixture and substance containing a detectable amount of fentanyl, a Schedule II controlled substance; acetyl fentanyl, a Schedule I controlled substance; and butyryl fentanyl, a Schedule I controlled substance, that resulted in the death of an east Tennessee resident.
Trial is set for May 28, 2019, in U.S. District Court, Knoxville. If convicted of distribution of controlled substances, Williams and Catlett each face a maximum sentence of 20 years in prison. If the finding is that death resulted from the use of such substance, they each face 20 years to life in prison. Additionally, each will face 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 and seizure of evidence was conducted by U.S. Homeland Security Investigations and the Sevier County Sheriff’s Office. Leading up to the indictment, these organizations partnered with the Sevier County Street Crimes Unit, Tennessee Bureau of Investigation, Knox County Regional Forensics Center, and U.S. Marshal’s Service. 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. Knox County, Tennessee, has been designated as one of those hot spots.
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.
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Lanny Chris Carroll Sentenced to Serve 90 Months in Prison for Being Felon in Possession of a FirearmRead the Press Release
GREENEVILLE, Tenn. – On February 28, 2019, Lanny Chris Carroll, 53, of Morristown, Tennessee, was sentenced by the Honorable Leon Jordan, Senior U.S. District Court Judge, to serve 90 months in federal prison.
Carroll pleaded guilty in August 2018 to being a felon in possession of a firearm. On February 13, 2018, officers with the Morristown Police Department were dispatched to a domestic violence call. They encountered Carroll attempting to enter a residence where his wife and her elderly father lived. His wife later advised police Carroll had called and threatened to kill her prior to arriving at the residence. After officers ordered him to stop and show his hands, Carroll drew a loaded Walther semi-automatic pistol from his waistband. Officers with the Morristown Police Department shot Carroll in the chest.
Carroll had been convicted of at least six felony offences in Hamblen County Criminal Court at the time of this crime.
“The U.S. Attorney’s office will not tolerate armed violence against police officers. We will continue to work with our local, state and federal law enforcement partners and the state district attorneys, using every tool and asset available, to ensure that violent criminals like Carroll are prosecuted and the threat they pose to the police and public is eliminated,” said U.S. Attorney J. Douglas Overbey.
Agencies involved in this investigation included the Tennessee Bureau of Investigation, Morristown Police Department, Third Judicial District Attorney’s Office, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Robert M. Reeves, Assistant U.S. Attorney, represented the United States in court proceedings.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
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Knoxville Resident Pleads Guilty to Wire FraudRead the Press Release
KNOXVILLE, Tenn. – Melissa Eula May, 44, of Knoxville, Tennessee, pleaded guilty on February 25, 2019, to an information charging her with wire fraud. Sentencing has been set for 10:00 a.m., July 18, 2019, in United States District Court in Knoxville.
In conjunction with her guilty plea, May, a former employee of the Oliver Spring Housing Authority, admitted to using credit cards issued by her employer for her own personal expenditures. She further admitted that from January 2015 through April 2017, she made fraudulent transactions totaling $149,440.02.
May faces a potential punishment of up to 20 years in prison, forfeiture of all assets illicitly purchased, and the obligation to pay restitution to the Oliver Springs Housing Authority.
This conviction was the result of an investigation by the U.S. Department of Housing and Urban Development, Office of Inspector General; Tennessee Department of Revenue; and, Oliver Springs Police Department. Assistant U.S. Attorney Frank M. Dale, Jr., represented the United States.
James Fitzgerald “Boogie” Simonton Sentenced to 330 Months for Crack Cocaine, Firearms and Witness Intimidation OffensesRead the Press Release
GREENEVILLE, Tenn. - On February 20, 2019, James Fitzgerald Simonton, a/k/a “Boogie,” 51, of Kingsport, Tennessee, was sentenced by the Honorable J. Ronnie Greer, Senior U.S. District Judge, to serve 330 months in federal prison. There is no parole in the federal system.
Simonton was convicted by a jury, in March 2018, following a three-day trial, for conspiracy to distribute 280 grams or more of crack cocaine; possession of firearms in furtherance of a drug trafficking offense; three counts of being felon in possession of firearms; and, witness intimidation. Evidence presented at trial revealed that an investigation began following the May 2016 appearance of two young males with gunshot wounds at Indian Path Hospital, one of whom was Simonton’s son. Detectives developed Simonton as a suspect in the shooting of the two. When officers went to his residence, they found a Glock pistol with extended magazine, which was traced by the Alcohol, Tobacco, Firearms, and Explosives (ATF) to Simonton’s neighbor. Through the trace, detectives learned the firearm had been purchased at Academy Sports in Johnson City. Academy provided paperwork for the transaction and surveillance video from its store, which reflected Simonton had been present along with a codefendant during the purchase of the firearm. Additional surveillance video showed that Simonton was present when another firearm was purchased by his then girlfriend. As the investigation progressed, two codefendants, one of whom was another son of Simonton, were arrested for possession of crack cocaine, leading to information about Simonton’s involvement in trafficking of crack cocaine from a source in Georgia into Sullivan County, Tennessee. Ultimately, the investigation successfully uncovered the firearm used in the shooting of the two young males, an AK63, 7.62 caliber rifle.
After his arrest, and while in federal custody, Simonton threatened a cooperating witness against him in an effort to influence that witness’ testimony. The jury found him guilty of intimidation of that witness.
Law enforcement agencies participating in this joint investigation were the Kingsport Police Department, Sullivan County Sheriff’s Office, and ATF. Assistant U.S. Attorney J. Gregory Bowman represented the United States in court proceedings.
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. Attorney’s Office for the Eastern District of Tennessee Collects $ $9,741,070.01 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2018Read the Press Release
KNOXVILLE, Tenn. - U.S. Attorney J. Douglas Overbey announced today that the Eastern District of Tennessee collected $ $9,741,070.01 in criminal and civil actions in Fiscal Year 2018. Of this amount, $7,782,647.37 was collected in criminal actions and $1,958,422.64 was collected in civil actions.
Additionally, the Eastern District of Tennessee worked with other U.S. Attorney’s offices and components of the Department of Justice to collect an additional $42,948,325.81 in cases pursued jointly with these offices. Of this amount, $32,298.67 was collected in criminal actions and $42,916,027.14 was collected in civil actions.
As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2018. The $14,839,821,650 in collections in FY 2018 represents nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for the 94 U.S. Attorneys’ offices.
U.S. Attorney J. Douglas Overbey praised the hard work of the Assistant U.S. Attorneys and the Monetary Recovery Unit in his office stating, “In addition to protecting the public by prosecuting and locking up criminals, the overall mission of the U.S. Attorney’s Office includes helping to compensate victims to the fullest extent possible. Restitution, fines and assessments collected by our office benefit all victims of crime. Collected restitution is paid directly to the victims of the crimes for whom it was ordered, while collected fines and assessments are paid to the Crime Victims’ Fund to fund state victim compensation and assistance programs.”
“The men and women of the U.S. Attorneys’ offices across the country work diligently, day in and day out, to see that the citizens of our nation receive justice. The money that we are able to recover for victims and this country as a whole is a direct result of their hard work,” Director James A. Crowell, IV, Executive Office for U.S. Attorneys.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights, or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration, and the Department of Education.
Additionally, the U.S. Attorney’s office for the Eastern District of Tennessee, working with partner agencies and divisions, collected $5,539,839.00 in asset forfeiture actions in FY 2018. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
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Robert Edward Howland Sentenced to Serve 167 Months in Federal Prison on Armed Robbery and Firearm ChargesRead the Press Release
GREENEVILLE, Tenn. – On February 13, 2019, Robert Edward Howland, 47, of Bristol, Tennessee, was sentenced by the Honorable J. Ronnie Greer, Senior U.S. District Judge, to serve a total of 167 months in federal prison. Howland was sentenced to 155 months for the 2016 armed robbery of the Big Orange Market in Bristol, Tennessee. He received an additional 12 months in prison, which will run consecutively, for violating the terms of his supervised release from a prior conviction. Upon his release from prison, he will be supervised by U.S. Probation for the remainder of his life.
According to the plea agreement on file with the U.S. District Court, on November 26, 2016, Howland admitted to robbing the Big Orange Market by brandishing a semiautomatic pistol, pointing it at the clerk and putting it against her back. In addition to committing the robbery, he walked the clerk out of the store at gunpoint and attempted to force her inside his truck. A combination of the clerk yelling for help and other customers rushing to her rescue resulted in Howland speeding off alone. After the police located him, Howland refused to stop and led officers on a lengthy four county pursuit from Bluff City, Tennessee, to Jefferson City, Tennessee. When the officers finally stopped him and approached his vehicle, Howland was holding the same firearm he used to rob the store.
At the time of this offense, Howland was on supervised release from a December 2011 conviction in U.S. District Court for the felony offense of failing to register as a sex offender.
Law enforcement agencies participating in the investigation included the Sullivan County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Wayne Taylor represented the United States in court proceedings.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
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Federal Jury Convicts Morristown Resident for Methamphetamine TraffickingRead the Press Release
GREENEVILLE, Tenn. – On February 13, 2019, following a two-day trial in the U.S. District Court, before the Honorable J. Ronnie Greer, Senior U.S. District Judge, a jury convicted Brandon Lee Alexander, 36, of Morristown, Tennessee, of possession with the intent to distribute 50 grams or more of methamphetamine; possession with the intent to distribute five grams or more of methamphetamine; possession of a firearm in furtherance of a drug trafficking crime; and possession of a firearm by a convicted felon. Sentencing is set for 9:00 a.m., June 3, 2019, in U.S. District Court in Greeneville.
Alexander faces a minimum sentence of 15 years to a maximum of life in prison. There is no parole in the federal system.
Evidence presented at trial revealed that as a result of a traffic stop by the Morristown Police Department in April 2017, Alexander was found to have 28 grams of methamphetamine in his waistband and also possess $11,580 cash and a loaded semi-automatic pistol. Alexander was arrested and released on bond the following day. In May 2017, Alexander was again pulled over by law enforcement and had 100 grams of methamphetamine in his possession.
Alexander was part of a 20-defendant indictment returned by the federal grand jury in February 2018 charging various offenses related to methamphetamine trafficking, firearms, and money laundering. All defendants except Alexander pleaded guilty.
The investigation leading to the indictment was the product of a partnership between the Morristown Police Department, Hamblen County Sheriff’s Department, Grainger County Sheriff’s Office, Cocke County Sheriff’s Office, Newport Police Department, Third Judicial Drug Task Force, Tennessee Highway Patrol, Appalachian High Intensity Drug Trafficking Area - Rocky Top Task Force, Third Judicial District Attorney General’s Office, U.S. Marshals Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, and FBI. Assistant U.S. Attorneys Thomas A. McCauley and J. Christian Lampe represented the United States at trial.
The investigation 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.
This case was also part of the Appalachia High Intensity Drug Trafficking Areas (HIDTA) program. 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 program began in 1988 when Congress authorized the Director of The Office of National Drug Control Policy designate areas within the United States that exhibit serious drug trafficking problems and harmfully impact other areas of the country as HIDTAs.
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One Chinese National and One American Indicted in East Tennessee for Conspiracy to Commit Theft of Trade Secrets and Wire FraudRead the Press Release
GREENEVILLE, Tenn. – On February 12, 2019, a grand jury sitting in Greeneville, Tennessee, returned an nine-count indictment against Xiaorong You, a/k/a Shannon You, 56, of Lansing, Michigan, and Liu Xiangchen, 61, of Shandong Province, China, for conspiracy to commit theft of trade secret information (TSI) related to formulations for bisphenol-A-free (BPA-free) coatings. You was also indicted on seven counts of theft of trade secrets and one count of wire fraud.
The BPA-free TSI allegedly stolen by these individuals belonged to multiple owners and cost an estimated total of $119,600,000 to develop. Until recently, bisphenol-A (BPA) was used to coat the inside of cans and other food and beverage containers to help minimize flavor loss and prevent the container from corroding or reacting with the food or beverage contained therein. However, due to the potential for BPA to be harmful to human health, companies began searching for BPA-free alternatives. These alternatives are difficult and expensive to develop.
From December 2012 through August 31, 2017, You was employed as Principal Engineer for Global Research by a company in Atlanta, Georgia, which had agreements with numerous companies to conduct research and development, testing, analysis, and review of various BPA-free technologies. Due to her extensive education and experience with BPA and BPA-free coating technologies, she was one of a limited number of employees with access to TSI belonging to the various owners. From approximately September 2017 through June 2018, You was employed as a packaging application development manager for a company in Kingsport, Tennessee, where she was one of a limited number of employees with access to TSI belonging to that company.
Details of the conspiracy are included in the indictment on file with the U.S. District Court. The indictment alleges that You, Xiangchen, and a third co-conspirator formulated a plan in which You would exploit her employment with the two American employers to steal TSI and provide the information for the economic benefit of persons other than the TSI owners, including a Chinese company that would manufacture and profit from products developed using the stolen TSI.
“Our office is committed to working closely with our federal, state and local partners to identify and prosecute those who engage in illegal and deceptive practices to steal trade secret and protected information from companies who spend millions of dollars to develop it. Not only can theft of this information be potentially devastating to our American companies, it could also pose a threat to our overall national and economic security,” said J. Douglas Overbey, U.S. Attorney for the Eastern District of Tennessee.
"As this indictment highlights, theft of trade secrets from American companies is an emerging economic threat, even here in East Tennessee," said Special Agent in Charge Troy Sowers, FBI Knoxville Field Division. "The tireless work of our agents and prosecutors in this case underscores the FBI's commitment to protecting American ingenuity."
“The conduct alleged in today’s indictment exemplifies the rob, replicate and replace approach to technological development,” said Assistant Attorney General John C. Demers, National Security Division. “Xiaorong You is accused of an egregious, premediated theft and transfer of trade secrets worth more than $100 million for the purpose of setting up a Chinese company that would compete with the American companies from which the trade secrets were stolen. Unfortunately, China continues to use its national programs, like the ‘Thousand Talents,’ to solicit and reward the theft of our nation’s trade secrets and intellectual property, but the Justice Department will continue to prioritize investigations like these, to ensure that China understands that this criminal conduct is not an acceptable business or economic development practice.”
“The facts laid out in this indictment show the conspirators engaged in blatant criminal activity,” said FBI Executive Assistant Director Jay S. Tabb, Jr. “They didn't stop at going after technical secrets belonging to just one company. They allegedly targeted multiple companies and made off with trade secrets at an estimated value of almost 120 million dollars. As this case demonstrates, the FBI is determined to do everything possible to bring to justice those who try to steal secrets belonging to American companies.”
Assistant U.S. Attorney TJ Harker and National Security Division Trial Attorney Matthew Walczewski will prosecute the case for the U.S. Attorney's Office for the Eastern District of Tennessee. The investigation was conducted by the FBI.
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 in a court of law.
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One American and One Chinese National Indicted in Tennessee for Conspiracy to Commit Theft of Trade Secrets and Wire FraudRead the Press Release
A grand jury sitting in Greeneville, Tennessee has returned an indictment against Xiaorong You, a/k/a Shannon You, 56, of Lansing, Michigan, and Liu Xiangchen, 61, of Shandong Province, China for conspiracy to steal trade secrets related to formulations for bisphenol-A-free (BPA-free) coatings. You was also indicted on seven counts of theft of trade secrets and one count of wire fraud.
Assistant Attorney General National Security John C. Demers, U.S. Attorney J. Douglas Overbey of the Eastern District of Tennessee, FBI Executive Assistant Director for the National Security Branch Jay Tabb, and Special Agent in Charge Troy Sowers of the FBI’s Knoxville Field Office made the announcement.
“The conduct alleged in today’s indictment exemplifies the rob, replicate and replace approach to technological development,” said Assistant Attorney General Demers. “Xiaorong You is accused of an egregious, premediated theft and transfer of trade secrets worth more than $100 million for the purpose of setting up a Chinese company that would compete with the American companies from which the trade secrets were stolen. Unfortunately, China continues to use its national programs, like the ‘Thousand Talents,’ to solicit and reward the theft of our nation’s trade secrets and intellectual property, but the Justice Department will continue to prioritize investigations like these, to ensure that China understands that this criminal conduct is not an acceptable business or economic development practice.”
“Our office is committed to working closely with our federal, state and local partners to identify and prosecute those who engage in illegal and deceptive practices to steal trade secret and protected information from companies who spend millions of dollars to develop it,” said U.S. Attorney Overbey. “Not only can theft of this information be potentially devastating to our American companies, it could also pose a threat to our overall national and economic security.”
“The facts laid out in this indictment show the conspirators engaged in blatant criminal activity,” said Executive Assistant Director Tabb. “They didn't stop at going after technical secrets belonging to just one company. They allegedly targeted multiple companies and made off with trade secrets at an estimated value of almost 120 million dollars. As this case demonstrates, the FBI is determined to do everything possible to bring to justice those who try to steal secrets belonging to American companies.”
"As this indictment highlights, theft of trade secrets from American companies is an emerging economic threat, even here in East Tennessee," said Special Agent in Charge Sowers. "The tireless work of our agents and prosecutors in this case underscores the FBI's commitment to protecting American ingenuity."
The BPA-free trade secrets allegedly stolen by these individuals belonged to multiple owners and cost an estimated total of at least $119,600,000 to develop. Until recently, bisphenol-A (BPA) was used to coat the inside of cans and other food and beverage containers to help minimize flavor loss, and prevent the container from corroding or reacting with the food or beverage contained therein. However, due to the discovered potential harmful effects of BPA, companies began searching for BPA-free alternatives. These alternatives are difficult and expensive to develop.
From December 2012 through Aug. 31, 2017, You was employed as Principal Engineer for Global Research by a company in Atlanta, which had agreements with numerous companies to conduct research and development, testing, analysis and review of various BPA-free technologies. Due to her extensive education and experience with BPA and BPA-free coating technologies, she was one of a limited number of employees with access to trade secrets belonging to the various owners. From approximately September 2017 through June 2018, You was employed as a packaging application development manager for a company in Kingsport, Tennessee, where she was one of a limited number of employees with access to trade secrets belonging to that company.
Details of the conspiracy are included in the indictment on file with the U.S. District Court. The indictment alleges that You, Liu, and a third co-conspirator formulated a plan in which You would exploit her employment with the two American employers to steal trade secrets and provide the information for the economic benefit of trade secrets the Chinese company that Liu managed, which would manufacture and profit from products developed using the stolen trade secrets. In exchange, Liu would cause the Chinese company to reward You for her theft, by helping her receive the Thousand Talent and another financial award, based on the trade secrets she stole, and by giving You an ownership share of a new company that would “own” the stolen trade secrets in China. The conspirators also agreed to compete with U.S. and foreign companies, including some of the owners of the stolen stolen trade secrets, in China and elsewhere, by selling products designed, developed and manufactured using the stolen trade secrets.
The charges contained in this indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI’s Knoxville Field Office.
The government’s case is being prosecuted by the Eastern District of Tennessee and the National Security Division’s Counterintelligence and Export Control Section.
Seymour Resident Charged with Bank RobberyRead the Press Release
KNOXVILLE, Tenn. – On February 11, 2019, a complaint was filed in U.S. District Court charging Joshua A. Baird, 35, of Seymour, Tennessee, with robbery of the Tennessee Connect Credit Bureau in Seymour, Tennessee, on the morning of February 11, 2019.
Baird appeared in federal court on February 12, 2019, and a detention hearing was set for 1:30 p.m. on February 14, 2019. This case has not yet been set for trial.
If convicted of bank robbery, Baird faces up to 20 years in prison, up to three years of supervised release, a fine of up to $250,000, any applicable forfeiture, and a $100 special assessment.
The investigation and seizure of evidence was conducted by the Knoxville Division of the FBI Safe Streets Task Force, which is comprised of law enforcement officers from the Knoxville Police Department and Knox County Sheriff’s Office, as well as agents from the FBI. The Sevier County Sheriff’s office also assisted with the investigation and capture of the suspect. Assistant U.S. Attorney Brent N. Jones will represent the United States in court proceedings.
Members of the public are reminded that a complaint constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
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Megan Brook Gilliam Sentenced to Serve 110 Months in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
GREENEVILLE, Tenn. – On February 11, 2019, Megan Brook Gilliam, 25, of Morristown, Tennessee, was sentenced by the Honorable J. Ronnie Greer, Senior U.S. District Court Judge, to serve 110 months in federal prison for her role in a conspiracy to distribute methamphetamine.
Gilliam pleaded guilty in October 2018 to conspiring with Trinity Scott Johnson, 39, of Morristown, Tennessee; Truman Lee Smith, 24, of Russellville, Tennessee; Colby Scarlett, 20, of Morristown, Tennessee; Jessica James, 30, of Morristown, Tennessee; and others to distribute over 50 grams of methamphetamine in east Tennessee in 2017 and 2018. Johnson was sentenced in October 2018 to serve 204 months in federal prison. Smith was sentenced in November 2018 to serve 10 years in federal prison. In January 2019, Scarlett was sentenced to serve 10 years in federal prison. Finally, in February 2019 James was sentenced serve 15 years in prison.
Agencies involved in this investigation included the Hamblen County Sheriff’s Department and FBI. Assistant U.S. Attorney Robert. M. Reeves represented the United States in court proceedings.
This case is 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. Former Attorney General Jeff Sessions 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.
This case was also the 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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Eastern District of Tennessee U.S. Attorney’s Office Backs the BlueRead the Press Release
Although we are only a little more than a month into 2019, statistics from the Officer Down Memorial Page indicate that across the nation 15 police officers have already been killed in the line of duty. One officer death is too many. Fifteen is an outrage!
These same statistics indicate that in 2018 a total of 150 police officers lost their lives in the line of duty. The number reaches a staggering total of 811 for the past five years. Few words are more heart wrenching than “officer down.” This violence against police officers must stop.
Brave members of the law enforcement community put their lives on the line every day to make our neighborhoods safer. They do this selflessly, not for the money, fanfare, or recognition, but because of a desire and commitment to serve their communities. They are the foundation of our cities and towns, making sacrifices 24 hours a day, seven days a week, to ensure the safety of their families, friends and complete strangers. They should never have to sacrifice their lives. They are our first call when we need help…and, that call should never be their last.
In February 2017, just weeks after taking office, President Trump issued an executive order calling on the Department of Justice to back our men and women in blue. This is exactly what our office has done and will continue to do. As United States Attorney in the Eastern District of Tennessee, I am personally committed to working in partnership with state and local law enforcement to develop strategies that work in our communities and make the streets safer for everyone, including law enforcement. Our office will continue to ensure that our laws are enforced and the public is safe.
The considerable number of law enforcement officers injured or killed across the nation in the line of duty over these past few weeks should be a reminder to us all of the hundreds of thousands of men and women in this country who put themselves in harm’s way each day. They, as well as their families, deserve our heartfelt thanks for a job well done.
While we should always surround our law enforcement community with respect and appreciation, this is especially important during the time of these senseless deaths. I challenge each of you in the coming days to make a point simply to stop and say “thank you” to an officer for doing his or her job to keep us, our families and our communities a safer place to live.
J. Douglas Overbey, United States Attorney, Eastern District of Tennessee
Laura Sue Aloa Covington Sentenced to Serve 135 Months in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
GREENEVILLE, Tenn. – On February 6, 2019, Laura Sue Aloa Covington, 23, of Morristown, Tennessee, was sentenced by the Honorable J. Ronnie Greer, Senior U.S. District Court Judge, to serve over 11 years in federal prison.
Covington pleaded guilty in October 2018 to conspiring with Jeffrey Scott Horner, 34 of Morristown, Tennessee; Joshua Tyler Garrett, 38, of Talbott, Tennessee; Faith Dillman-Covington, 26, of Morristown, Tennessee; Ricky Dwayne Collins, 38, of Morristown, Tennessee and others to distribute over 50 grams of methamphetamine in east Tennessee in 2017 and 2018.
All defendants in this case have been convicted and await sentencing. Horner is set to be sentenced on February 13, 2019. Garrett is set to be sentenced on March 4, 2019. Sentencing for Dillman-Covington is set for April 1 2019. Finally, Collins is set to be sentenced on April 8, 2018. All face 10 years to life in federal prison.
Agencies involved in this investigation included the Hamblen County Sheriff’s Department and FBI. Assistant U.S. Attorney Robert. M. Reeves represented the United States in court proceedings.
This case is 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. Former Attorney General Jeff Sessions 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.
This case was part of the Appalachia High Intensity Drug Trafficking Areas (HIDTA) program. 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 program began in 1988 when Congress authorized the Director of The Office of National Drug Control Policy designate areas within the United States that exhibit serious drug trafficking problems and harmfully impact other areas of the country as HIDTAs.
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Jessica James Sentenced to Serve 180 Months in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
GREENEVILLE, Tenn. – On February 6, 2019, Jessica James, 30, of Morristown, Tennessee, was sentenced by the Honorable J. Ronnie Greer, Senior U.S. District Court Judge, to serve 15 years in federal prison.
James pleaded guilty in October 2018 to conspiring with Trinity Scott Johnson, 39, of Morristown, Tennessee; Truman Lee Smith, 24, of Russellville, Tennessee; Colby Scarlett, 20, of Morristown, Tennessee; and others to distribute over 50 grams of methamphetamine in east Tennessee in 2017 and 2018. In October 2018, Johnson was sentenced to serve 204 months in prison. Smith was sentenced in November 2018 to serve 10 years in federal prison. In January 2019, Scarlett was also sentenced to serve 10 years in federal prison.
Sentencing for codefendant Megan Gilliam, 25, of Morristown, Tennessee, is set for February 11, 2019. She also faces 10 years to life in federal prison.
Agencies involved in this investigation included the Hamblen County Sheriff’s Department and FBI. Assistant U.S. Attorney Robert. M. Reeves represented the United States in court proceedings.
This case is 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. Former Attorney General Jeff Sessions 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.
This case was also the 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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U.S. Attorney’s Office Welcomes 15 New Assistant U.S. AttorneysRead the Press Release
KNOXVILLE, Tenn. – On Friday, January 25, 2019, the Honorable Thomas A. Varlan, Chief U.S. District Judge, formally administered the oath of office to 15 new Assistant U.S. Attorneys (AUSAs) for the Eastern District of Tennessee. U.S. Attorney J. Douglas Overbey introduced the new AUSAs with a short background before moving the court to administer the oath of office to each of them. The new AUSAs will serve in the Knoxville headquarters office as well as the Chattanooga and Greeneville branch offices and include the following:
AUSA Casey Arrowood joined the Knoxville office where he will handle general crimes and national security matters. Prior to coming to the Eastern District of Tennessee, he served as an AUSA in the Western District of North Carolina and a trial attorney in the National Security Division at the U.S. Department of Justice in Washington, DC. He also previously served as a law clerk in the Eastern District of New York and U.S. Court of Appeals for the Sixth Circuit. Before attending law school, he was an artillery officer in the U.S. Army, serving tours in Kosovo and Afghanistan. Arrowood received his undergraduate degree from the University of North Carolina at Chapel Hill and his law degree from Georgetown University Law Center.
AUSA Kevin Brown joined the Chattanooga office as a Special AUSA working in the Violent Crimes Unit to prosecute firearms, drug and gang related offenses. He comes to the U.S. Attorney’s Office via the Chattanooga Police Department, where he serves as a Special Assistant City Attorney. Prior to joining the U.S. Attorney’s Office, Brown was an Assistant District Attorney in the 11th Judicial District of Tennessee, where he prosecuted violent crimes and served as Criminal Court Division Supervisor.
AUSA Frank Clark joined the Chattanooga office to prosecute violent crimes and narcotics offenses. He was a prosecutor for 13 years, first in his home state of Mississippi, and then in Gwinnett County, Georgia. He has a law degree from Ole Miss and an undergraduate degree from Mississippi College. Just prior to joining the U.S. Attorney’s Office, Clark worked at a law firm practicing civil defense litigation.
AUSA Joe DeGaetano joined the Chattanooga office where he will handle violent crime and narcotics prosecutions. He has an undergraduate degree from Vanderbilt University and a law degree from the University of Georgia. After clerking for a judge on the Eleventh Circuit in Atlanta, he worked for a large law firm in Nashville and Chattanooga. He then joined a small firm in Chattanooga and finally was a solo practitioner for around 10 years. Most recently, he was a personal injury lawyer for 17 years and additionally defended federal criminal defendants through the CJA Panel.
AUSA Margaret Harker joined the ACE team in the civil division of the Knoxville office. She transferred from the Eastern District of Virginia where she practiced defensive litigation as a civil AUSA. Prior to becoming an AUSA, she served as a law clerk in the U.S. District Court for the Eastern District of Virginia and the Virginia Court of Appeals. She also interned for the Fourth Circuit Court in Virginia and Virginia Supreme Court. Margaret received her law degree from the University of Richmond, School of Law and her undergraduate degree in political science, Asian studies, and studio art, from Santa Clara University. She also studied at the University of International Business and Economics in Beijing, China.
AUSA TJ Harker joined the Greeneville office to prosecute white-collar crime, with a focus on complex health care fraud. Prior to coming to the Greeneville office, he service five years as a Deputy Attorney General for the State of New Jersey, Division of Criminal Justice, where he led New Jersey’s Commercial Bribery Task Force. Before that, he was in private practice in New York. He received his law degree from the University of Michigan Law School.
AUSA Brent Jones joined the Knoxville office to prosecute drug cases as part of the Department of Justice’s Operation Synthetic Opioid Surge. A native of Tennessee, Jones received his undergraduate degree from the University of Tennessee, Knoxville, and his law degree from the Cumberland School of Law at Samford University in Birmingham, Alabama. He joined the U.S. Air Force JAG Corps, where he served in various positions for over 11 years, and remains in the Air Force in a reserve capacity, stationed out of Joint Base Andrews, Maryland.
AUSA Alan Kirk joined the Knoxville office to concentrate on violent crime and narcotics prosecutions. A native of Birmingham, Alabama, he received an undergraduate degree from Auburn University and law degree from the Cumberland School of Law. Kirk joined the U.S. Army Judge Advocate General’s Corp and was most recently stationed at Fort Jackson in South Carolina.
AUSA Todd Martin joined the Greeneville office to prosecute violent crime offenders. He graduated from New River Community College and East Tennessee State University before attending law school at the University of Memphis. He also completed his Master of Laws at Boston University. Prior to becoming an attorney, he served as a deputy sheriff and medic for the Bristol, Virginia, Sheriff’s Office, a patrol officer with the Bristol, Tennessee, Police Department, and a reserve deputy sheriff with the Shelby County Sheriff’s Office. After this, Martin was appointed as an Assistant District Attorney for the Second Judicial District of Tennessee. During that time, he joined the U.S. Army Reserves as a Judge Advocate. Prior to joining the U.S. Attorney’s Office, he served as a Firearms, Explosives and Arson Attorney with the Bureau of Alcohol, Tobacco, Firearms and Explosives for 12 years.
AUSA Tom McCauley currently serves as a Special AUSA in the Greeneville office, responsible for violent crime cases in Johnson City. He is a graduate of the Duncan School of Law in Knoxville, Tennessee. Prior to becoming a Special AUSA, McCauley was an Assistant Public Defender in the Fourth Judicial District. His experience before and during law school includes serving as a patrol officer, detective, DEA Task Force Agent, narcotics investigator, SWAT sniper, and firearms instructor. He has also served as a POST certified instructor at the Regional Law Enforcement Academy in Greeneville, Tennessee, and the Advanced Undercover Operative Coarse at the Regional Counterdrug Training Academy in Meridian, Mississippi.
AUSA Gretchen Mohr joined the Monetary Recovery Unit in the Knoxville office to work on asset forfeiture and financial matters. She graduated from Middle Tennessee State University and received a law degree from New York Law School in New York City. After law school, she served as a law clerk for the New York Supreme Court. Most recently, she spent five years prosecuting street and violent crime for the Manhattan District Attorney’s Office.
AUSA Andrew Parker joined the Greeneville office to prosecute violent crime offenses. Parker is from the Tampa Bay area of Florida, where he was a state prosecutor for six years. He is a graduate of the College of Charleston and Florida Coastal School of Law.
AUSA Kevin Quencer joined the Organized Crime Drug Enforcement Task Force Unit in the Knoxville office. He earned his undergraduate degree from Dartmouth and his law degree from Washington and Lee. After law school, Kevin served as an officer in the U.S. Navy Judge Advocate General’s Corps for five years, on active duty, as a trial attorney and appellate law clerk. Remaining a Lieutenant Commander in the U.S. Navy Reserves, he resigned his active duty commission to join the U.S. Attorney’s Office for the Southern District of Florida in his native Miami, Florida. There he focused on prosecuting international drug traffickers in South America and the Caribbean as well as members of a designated Foreign Terrorist Organization, the FARC, operating in the jungles of Colombia.
AUSA Joe Rodriguez joined the Affirmative Civil Enforcement Unit in the Knoxville office. He has a bachelor’s degree in political science from St. Edward’s University in Austin, Texas. He attended law school at Indiana University in Bloomington, Indiana, where he served on the law journal, moot court board, and was treasurer of the Latino Law Student Association. After graduating from law school, he worked as a civil litigation associate with a law firm in Columbus, Ohio, before becoming an AUSA in the Western District of Texas in San Antonio. In addition to maintaining a caseload of mostly civil defensive litigation, he served as a Deputy Civil Chief for the Western District of Texas, supervising all defensive litigation in San Antonio, Austin, and elsewhere throughout the district.
AUSA Brian Samuelson joined the Appellate Unit in the Knoxville office. He received his undergraduate degree from the University of Wisconsin and his law degree from Harvard Law School. After law school, he clerked for the Alaska Supreme Court and the Ninth Circuit Court of Appeals. He most recently was with a law firm in Portland, Oregon.
“It is with pride and pleasure that I welcome each of these individuals as part of the team of experienced and dedicated attorneys in the U.S. Attorney’s Office for the Eastern District of Tennessee,” said U.S. Attorney J. Douglas Overbey.
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Child Predator Sentenced to 300 Months for Enticement and Child Pornography OffensesRead the Press Release
KNOXVILLE, Tenn. - On December 20, 2018, Justin Kyle Phelps, 27, of Philadelphia, Tennessee, was sentenced by the Honorable Pamela L. Reeves, U.S. District Judge, to serve 300 months in federal prison for enticing and attempting to entice minors for sex and using a minor to engage in sexually explicit conduct for the purpose of producing child pornography. Following his release from prison, Phelps will be supervised by the U.S. Probation Office for 10 years and be required to register with the sex offender registry in any state in which he resides, works, or attends school.
In March 2017, Phelps was arrested when he travelled to Knoxville for the purpose of meeting a minor female for sex. The investigation revealed that he had victimized several minors between the ages of 12 and 15 years, including having sex with some of them and obtaining pornographic photographs of other minors taken at his direction. In July 2018, Phelps pleaded guilty to knowingly enticing and attempting to entice minors through social media for illegal sexual activity.
“Online predators are constantly looking for children to sexually abuse. This prosecution represents part of our efforts to work with law enforcement agencies to protect children from persons who seek to manipulate kids, from the shadows of the internet, for illegal sex and child pornography,” said J. Douglas Overbey, U.S. Attorney for the Eastern District of Tennessee.
This investigation was conducted by the Knoxville Police Department’s Internet Crimes Against Children Unit and the U.S. Department of Homeland Security - Homeland Security Investigations. Assistant U.S. Attorney Matthew Morris represented the United States in court proceedings.
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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Federal Grand Jury Indicts Michigan Resident for Fentanyl Possession with Intent to DistributeRead the Press Release
KNOXVILLE, Tenn. – On December 4, 2018, a federal grand jury in Knoxville returned a one-count indictment against D’Marko Vernell King, 30, of Detroit, Michigan. This case has not yet been set for trial.
The indictment, on file with the U.S. District Court, alleges that King possessed, with intent to distribute, four hundred (400) grams or more of a mixture or substance containing a detectable amount of fentanyl, a Schedule II controlled substance, in the Eastern District of Tennessee.
If convicted of the possession with intent to distribute charge, King faces a minimum mandatory term of at least 10 years and up to life in prison, at least five years of supervised release, a fine of up to $10,000,000, any applicable forfeiture, and a $100 special assessment.
The investigation and seizure of evidence was conducted by the Narcotics Unit of the Knox County Sheriff’s Office. Leading up to the indictment, they partnered with the Drug Enforcement Administration, Tennessee Bureau of Investigation, and U.S. Marshals Service. 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. Knox County, Tennessee, has been designated as one of those hot spots.
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.
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Thomas Andrew Malotte Sentenced to 130 Months in Federal Prison for Posession of Child PornographyRead the Press Release
KNOXVILLE, Tenn. - On November 30, 2018, Thomas Andrew Malotte, 54, of Sevierville, Tennessee, was sentenced by the Honorable Thomas A. Varlan, Chief U.S. District Judge, to serve 130 months in federal prison for possessing child pornography.
Upon his release from prison, Malotte will be supervised by the U.S. Probation Office for 10 years and be required to register with the sex offender registry in any state in which he resides, works, or attends school. Malotte was also ordered to pay $500 to each of his victims and forfeit his computer equipment used to obtain, store and access the illegal materials online.
Malotte pleaded guilty to a federal indictment in April 2018. Agents of the Internet Crimes Against Children Task Force ICAC) identified Malotte as a distributor of child pornography during online undercover operations.
This investigation was conducted by the Knoxville Police Department’s ICAC. Assistant U.S. Attorney Bart Slabbekorn represented the United States in court proceedings.
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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Tennessee Man Sentenced to Prison for Filing False Retaliatory Lien and Making a False Tax Refund ClaimRead the Press Release
A Rogersville, Tennessee, resident was sentenced to 30 months in prison today for filing a fraudulent multi-million dollar lien against a government employee and filing a false claim for a tax refund, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents, Brian Leo Snow failed to pay his federal tax liabilities for the years 2000 - 2008 and then became the subject of collection activity by the Internal Revenue Service (IRS). After being held in contempt of court for failing to provide documents and records to the IRS, Snow filed false retaliatory liens claiming that various government officials, including an IRS revenue officer, an Assistant United States Attorney, a United States District Court Judge, and the Clerk of Court for the Eastern District of Tennessee, owed him millions of dollars. Each of these government officials had been involved in attempts to collect Snow’s back taxes. Snow also filed three false claims with the IRS claiming over $144 million in tax refunds to which he was not entitled. Snow owes the IRS over $150,000 in taxes for tax years 2000-2008 and 2014-2015.
In addition to the term of imprisonment imposed, Snow was ordered to serve three years of supervised release and pay $154,025 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of the offices of the Treasury Inspector General for Tax Administration and IRS Criminal Investigation, who conducted the investigation, and Tax Division Senior Litigation Counsel Jen E. Ihlo, who prosecuted the case.
Lucas Anthony Nichols Sentenced to 262 Months for Child Pornography OffensesRead the Press Release
KNOXVILLE, Tenn. - On November 28, 2018, Lucas Anthony Nichols, 40, of Knoxville, Tennessee, was sentenced by the Honorable Thomas A. Varlan, Chief U.S. District Judge, to serve 262 months in federal prison for receiving and possessing child pornography. Following his release from prison, Nichols will be supervised by the U.S. Probation Office for 10 years and be required to register with the sex offender registry in any state in which he resides, works, or attends school.
In April 2018, Nichols pleaded guilty to federal charges stemming from an undercover investigation into the storage of child pornography over the Internet. Search warrants were issued for Nichols’ online storage account and his residence. The seized evidence revealed that Nichols had saved thousands of images and videos of child pornography on his online storage account, including sadistic depictions of the sexual abuse of young children.
“The receipt and collection of child pornography is a serious crime that perpetuates the victimization of children and fuels the demand for the production of more child pornography,” said J. Douglas Overbey, U.S. Attorney for the Eastern District of Tennessee. “Our office commends the collaborative law enforcement efforts taken to bring this defendant to justice.” added U.S. Attorney Overbey.
This investigation was conducted by the Knoxville Police Department’s Internet Crimes Against Children Unit, U.S. Department of Homeland Security - Homeland Security Investigations, and U.S. Postal Inspection Service. Assistant U.S. Attorney Matthew Morris represented the United States in court proceedings.
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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Federal Grand Jury Indicts Twenty-Two in Methamphetamine Distribution ConspiracyRead the Press Release
GREENEVILLE, Tenn. – On October 10, 2018 a federal grand jury in Greeneville returned a 76-count indictment against the following individuals for their roles in the distribution of methamphetamine (meth):
- Juan Moreno Pantiga, 29, of Greene County, Tennessee;
- Oscar Orozco-Blaco, 44, of Jefferson City, Tennessee;
- Luis Rey Maldonado-Patino, 32, of Hamblen County, Tennessee;
- Rainey Nichole Fields, 27, of Greene County, Tennessee;
- Brycen Foster Nye, 32, of Greene County, Tennessee;
- Cody Allen Arnold, 33, of Greene County, Tennessee;
- Jeffery Allen Isley, 39, of Greene County, Tennessee;
- Kenneth Dewayne McIntosh, 24, of Greeneville, Tennessee;
- David Brock Church, 27, of Greeneville, Tennessee;
- James Clayton Alan Broyles, 43, of Greeneville, Tennessee;
- JD Edward Ealey, 48, of Greeneville, Tennessee;
- Brian David Gray, 35, of Greeneville, Tennessee
- Donya Lea Earley, 27, of Greene County, Tennessee;
- Austin Edward Isley, 20, of Greene County, Tennessee;
- Chelsea Brook Gray, 27, of Greeneville, Tennessee;
- Randy Allen Brown, 52, of Greeneville, Tennessee
- Makayla Nicole Isley, 21, of Greene County, Tennessee;
- Harold Arthur Johnson, Jr., 48, of Greene County, Tennessee;
- Kimberly Gaye Maples, 32, of Greeneville, Tennessee;
- Caleb Blaine Davis, 27, of Hawkins County, Tennessee;
- Jessee Dewayne Lowery, 32, of Greene County, Tennessee;
- Dana Renee Nelson, 32, of Greene County, Tennessee.
The indictment was recently unsealed by the U.S. District Court and has not yet been set for trial. The case will be heard by the Honorable J. Ronnie Greer, Senior U.S. District Judge.
The indictment, on file with U.S. District Court, alleges that each of these individuals was involved in a conspiracy to distribute 50 grams or more of meth in the Eastern District of Tennessee and elsewhere. Moreno-Pantiga, Maldanado-Patino, Fields, Arnold, Jeffrey Isley, McIntosh, Church, Broyles, Earley, Brian Gray, Austin Isley, Chelsea Gray, Makayla Isley, Johnson, Maples, and Davis were also each charged with at least one count of possession of a firearm in furtherance of a drug trafficking crime. The indictment also alleges other charges related to the distribution and possession with the intent to distribute controlled substances as well as money laundering.
If convicted of the meth conspiracy charge, each faces a minimum mandatory term of at least 10 years and up to life in prison, at least five years of supervised release, a fine of up to $10,000,000, any applicable forfeiture, and a $100 special assessment. Moreno-Pantiga, Maldanado-Patino, Fields, Arnold, Jeffrey Isley, McIntosh, Church, Broyles, Earley, Brian Gray, Austin Isley, Chelsea Gray, Makayla Isley, Johnson, Maples, and Davis face a minimum mandatory term of at least five years and up to life in prison for the firearms charges against them, which must be served consecutively to any other prison term imposed, up to five years supervised release, a fine of up to $250,000, and a $100 special assessment.
The ongoing investigation leading to the indictment was the product of a partnership between 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, Tennessee National Guard Counterdrug Task Force, Tennessee Highway Patrol, United States Marshal Service, Homeland Security Investigations, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, and FBI. Assistant U.S. Attorney J. Christian Lampe will represent the United States.
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.
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.
This case is also 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. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offics 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.
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Kingsport Resident Sentenced to 188 Months on Marijuana Conspiracy, Firearms, and Money Laundering ChargesRead the Press Release
GREENEVILLE, Tenn. – On November 15, 2018, Christopher Scott Burchett, 36, of Kingsport, Tennessee, was sentenced by the Honorable Pamela L. Reeves, U.S. District Court Judge, to serve 188 months in federal prison. Burchett was convicted for his role in a conspiracy to distribute marijuana, possession of a firearm in furtherance of a drug trafficking crime, and a conspiracy to commit money laundering in east Tennessee.
According to the plea agreement on file with the U.S. District Court, Burchett admitted to being responsible for at least 1,000 kilograms or more of marijuana. He obtained large quantities of marijuana from numerous sources of supply in Oregon and California, which were then re-distributed to customers in east Tennessee. In order to run this organization, Burchett recruited and employed numerous co-conspirators to make trips to Oregon with large sums of cash, obtain the marijuana, and transport it back to east Tennessee for resale. Burchett paid these individuals up to $10,000.00 per trip. The marijuana would often be contained in hidden locations in vehicles to avoid detection from law enforcement officers. Upon returning to the Kingsport area, Burchett had other co-conspirators ready to unload and store the marijuana until it could be divided up and sold by him and others working on his behalf. In addition to marijuana, Burchett also obtained Butane Honey Oil (BHO or hashish oil) from sources in Oregon that was transported back to east Tennessee and resold for profit. He further engaged in financial transactions involving the proceeds of the illegal distribution of marijuana, which included bulk currency shipments, the acquisition of vehicles and firearms and the transfer of real property.
One of Burchett’s co-defendants, Chad Allen Dorton, 35, of Kingsport, Tennessee, proceeded to trial in September 2017. Evidence and testimony introduced at trial showed the conspirators purchased, transported, and distributed 2500 to 3700 lbs. of marijuana during the conspiracy period, with a street value of $12 - $18 million. All of the drugs were distributed in Kingsport and surrounding areas. Following the trial, Dorton was convicted of conspiracy to distribute and possess with the intent to distribute 1,000 kilograms or more of marijuana. He was sentenced on December 4, 2017, to serve 168 months in federal prison.
Law enforcement agencies participating in the investigation included the Drug Enforcement Administration, Tennessee Bureau of Investigation, Second Judicial Drug Task Force, Sullivan County Sherriff’s Office, Kingsport Police Department, Internal Revenue Service – Criminal Investigations, and the Rogue Area Drug Enforcement of Josephine County, Oregon. Assistant U.S. Attorneys Wayne Taylor, David L. Gunn and T.J. Harker represented the United States.
This case is 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. Attorney General Jeff Sessions 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.
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