Eastern District of Tennessee
Press releases recorded for this federal judicial district.
Heroin Dealer Responsible for Overdose Death Sentenced to 23 YearsRead the Press Release
CHATTANOOGA, Tenn. – Darius Jermaine Blakemore, a/k/a Tank, 29, of Chattanooga, Tennessee, was sentenced by the Honorable Harry S. Mattice, Jr., United States District Judge, to serve 23 years in prison for his role in a heroin distribution conspiracy resulting in death. Upon his release from prison, Blakemore will be under the supervision of the U.S. Probation Office for three years.
Blakemore pleaded guilty to conspiracy to distribute heroin resulting in death, distribution of heroin resulting in death, possession with intent to distribute cocaine, possession with intent to distribute crack, and possession with intent to distribute heroin. His guilty plea was entered on the second day of his trial for the same offenses.
According to his plea agreement on file with U.S. District Court and proof presented at his trial, in February 2016 Blakemore sold a gram of heroin to Jessica Rachels in the parking lot of a McDonald’s in Chattanooga. After Rachels arrived at the McDonald’s parking lot, Blakemore gave the heroin to one of his runners, Joshua Corbett, who delivered the heroin to Rachels. Rachels gave a portion of the heroin she received from Corbett to Logan Whiteaker, 24, of Red Bank, Tennessee, who drove her to purchase the drugs. A family member found Whiteaker dead the next morning on the bathroom floor of his Red Bank residence with a hypodermic needle clutched in his hand. A container on the bathroom counter had .64 grams of heroin inside. Whiteaker had graduated from Hamilton County Drug Court less than 24 hours prior to his death.
Rachels and Corbett were also charged with distribution of heroin resulting in death. Like Blakemore, both pleaded guilty to distribution of heroin resulting in death and were each sentenced to serve 10 years in prison. Upon their release, they will be under the supervision of the U.S. Probation Office for three years.
“Heroin has proven to be a deadly poison that does not discriminate,” said J. Douglas Overbey, U.S. Attorney, Eastern District of Tennessee. “Its victims span gender, race, age, and economic background, and its debilitating effects are the same across all demographics. According to the U.S. Centers for Disease Control and Prevention, heroin deaths have now surpassed gun homicides. The U.S. Attorney’s Office will not stand idle as the death toll continues to rise. We will use all of the tools available to us to hold drug dealers like Blakemore accountable for their actions,” added U.S. Attorney Overbey.
Federal law provides enhanced penalties for drug dealers who distribute controlled substances that lead to overdose deaths, including a 20-year mandatory minimum sentence.
”The U.S. Drug Enforcement Administration, and their Task Force partners from the Hamilton County Sheriff’s Office, Tennessee Highway Patrol, Red Bank Police Department, Chattanooga Police Department, and Tennessee Bureau of Investigation will investigate and pursue overdose deaths in Southeast Tennessee to the fullest extent of the law. The sentencing of Darius Blakemore stands as an example of this coalition’s commitment to protecting the most vulnerable elements of our community from the persistent threat of heroin,” said John McGarry, Resident Agent in Charge, Drug Enforcement Administration, Chattanooga.
Law enforcement agencies participating in the joint investigation that led to the charges in this case include the Drug Enforcement Administration, Hamilton County Sheriff’s Office, Chattanooga Police Department, Tennessee Bureau of Investigation, Tennessee Highway Patrol, and Red Bank Police Department. Assistant U.S. Attorneys Michael D. Porter and Scott Winne represented the United States in court proceedings.
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Attorney General Jeff Sessions and U.S. Attorney J. Douglas Overbey Recognize Law Enforcement Service and Sacrifice During National Police WeekRead the Press Release
KNOXVILLE, Tenn. – Attorney General Jeff Sessions and U.S. Attorney J. Douglas Overbey, Eastern District of Tennessee, recognized the service and sacrifice of federal, state, local, and tribal police officers on the occasion of National Police Week, and commented on the FBI's 2017 Law Enforcement Officers Killed and Assaulted report.
This week, Attorney General Sessions participated as the keynote speaker at the annual Gatlinburg Law Enforcement Training Conference, which opened with a tribute to fallen officers from the past year. Attorney General Sessions paid tribute to the 750 local, state and federal law enforcement professionals in attendance by stating, “In this very room are some of the best people in America. You and those you lead invest their lives in their communities to protect the innocent and vulnerable. You place your lives at risk for the safety of others, for law, for America.”
Several events to commemorate National Police Week will be held across the Eastern District of Tennessee. U.S. Attorney Overbey and other members of the U.S. Attorney’s staff will participate in many of these events in Knoxville, Chattanooga and Tri-cities.
On Tuesday, May 15, 2018, U.S. Attorney Overbey will speak at the Blount County’s Annual Law Enforcement Memorial Service to be held at 11:00 a.m., in the City Courtroom building at the Alcoa Police Department, 2020 Wright Road, Alcoa, Tennessee. Two former Alcoa police officers were recently accepted for inclusion on the National Law Enforcement Officers Memorial in Washington, D.C. They are: Lieutenant. Glen Giles, who died July 3, 1987, and Officer William M. Hunt, who died July 7, 1937, both in the line of duty.
“One officer death is too many,” Attorney General Sessions said. “While we are inexpressibly grateful to have had a decrease in the number of officers killed in the line-of-duty last year, the number is still far too high. At the Department of Justice, we honor the memories of the fallen and we pray for their families. We are also following President Trump's Executive Orders to back the women and men in blue, to enhance law enforcement safety, and to reduce violent crime in America. Those priorities will help keep every American safe, including those who risk their lives for us. As always, we have their backs and they have our thanks.”
“Statistics from the Officer Down Memorial Page indicate that over 50 officers were killed in the line of duty across the nation over the past year. Many of these were firearms related. This violence against police officers, as well as the violent acts occurring in our communities, must stop. Reducing violent crime is a major priority of the Department of Justice as well as mine,” stated U.S. Attorney Overbey. “As the United States Attorney for the Eastern District of Tennessee, I am personally committed to work 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,” added U.S. Attorney Overbey.
According to statistics collected by the FBI, 93 law enforcement officers were killed in line-of-duty incidents in 2017 – a 21 percent decrease from 2016 when 118 law enforcement officers were killed in line-of-duty incidents.
Additionally, in 2017 there were 46 law enforcement officers killed in line-of-duty incidents as a result of felonious acts – this is a 30 percent decrease from 2016, when 66 law enforcement officer were killed in line-of-duty incidents as a result of felonious acts.
For the full comprehensive data tables about these incidents and brief narratives describing the fatal attacks and selected assaults resulting in injury, please see the 2017 edition of Law Enforcement Officers Killed and Assaulted report, released today.
In October 1962, Congress passed and President Kennedy signed a joint resolution 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.
During Police Week, which is observed from Sunday, May 13 to Saturday, May 19, 2018, our nation celebrates the contributions of police officers from around the country, recognizing their hard work, dedication, loyalty and commitment in keeping our communities safe.
The names of all 93 fallen officers nationwide will be formally dedicated on the National Law Enforcement Officers Memorial in Washington, DC, during the 30th Annual Candlelight Vigil on the evening of May 13, 2018. So that people across the country can experience this unique and powerful ceremony, the vigil will be livestreamed beginning at 8:00 p.m. EDT on May 13th. To register for this free online event, visit www.LawMemorial.org/webcast.
The Candlelight Vigil is one of many commemorative events taking place in the nation’s capital during National Police Week 2018.
For more information about other National Police Week events, please visit www.policeweek.org.
To access the FBI's 2017 Law Enforcement Officers Killed and Assaulted report, please visit www.fbi.gov.
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Maximino Contreras Sentenced to Serve 210 Months in Prison for Shipping Methamphetamine from Arizona to East TennesseeRead the Press Release
KNOXVILLE, Tenn. – On April 30, 2018, Maximino Contreras, 47, of Tollison, Arizona, was sentenced by the Honorable Pamela L. Reeves, U.S. District Judge, to serve 210 months in federal prison for his role in a methamphetamine distribution conspiracy.
Contreras pleaded guilty in July 2017 to conspiracy to distribute 50 grams or more of methamphetamine. In his plea agreement on file with U.S. District Court, Contreras admitted to shipping methamphetamine from Arizona, where he resided, to east Tennessee. He also admitted that in August 2016, he was in possession of four pounds of methamphetamine and approximately $22,000 in cash that was seized from an apartment being used as a stash house in Morristown, Tennessee.
Agencies involved in this investigation included Drug Enforcement Administration- Knoxville and Phoenix Field Divisions, U.S. Postal Inspection Service- Knoxville and Phoenix Field Divisions, Tennessee Highway Patrol, Seventh Judicial District Crime Task Force, and the Morristown Police Department. Assistant U.S. Attorney Kelly A. Norris represented the United States during court proceedings.
Funding for some of the task forces involved in this investigation also came from the Appalachian High Intensity Drug Area Task Force (HIDTA) which was created in 1998, one of 32 areas in the nation that have been designated as HIDTAs. The HIDTA Program began in 1988 when Congress authorized the Director of The Office of National Drug Control Policy (ONDCP) to designate areas within the United States which exhibit serious drug trafficking problems and harmfully impact other areas of the country as HIDTAs. The HIDTA Program provides additional federal resources to those areas to help eliminate or reduce drug trafficking and its harmful consequences.
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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Kingsport Pharmacist Agrees to Pay $100,000 in Civil Penalties to Settle Alleged Violations of the Controlled Substances ActRead the Press Release
GREENEVILLE, Tenn. – P&S Pharmacy, a retail pharmacy in Kingsport, Tennessee, and Lowell Grizzle, the pharmacy owner and a licensed pharmacist, have agreed to pay the United States $100,000 in civil penalties to settle allegations that P&S Pharmacy and Grizzle violated the Controlled Substances Act. To prevent the diversion or misuse of controlled substances, including certain prescription drugs, the Controlled Substances Act requires persons and companies involved in the chain of distribution to maintain complete and accurate records relating to the controlled substances they receive and dispense.
The United States alleged that in November 2014 an accountability audit of P&S Pharmacy by the U.S. Drug Enforcement Administration (DEA) uncovered multiple record-keeping violations. Specifically, the United States alleged that P&S Pharmacy and Grizzle failed to maintain complete and accurate records with respect to several Schedule II controlled substances as required by the Controlled Substances Act and failed to note the date and quantity of controlled substances that were received.
U.S. Attorney J. Douglas Overbey said, “Given the severity of the opioid crisis in East Tennessee, it is imperative that pharmacies maintain accountability by keeping accurate records and ensuring that prescribed opioids do not fall into the wrong hands. Retail pharmacists and other professionals who fail to fulfill their legal obligations to keep a responsible account of these dangerous drugs increases the risk of diversion, which contributes to this crisis. This settlement is a clear message that the U.S. Attorney’s office is looking to those responsible for safeguarding and distributing prescription medication and will strictly enforce the requirements of the Controlled Substances Act.”
D. Christopher Evans, Special Agent in Charge of the DEA Louisville Field Division, also commented on this case, stating, “The consumption of opiates being distributed for non-medical reasons continues to be a major concern. Consequently, DEA Diversion Investigators will continue to conduct accountability audits to make sure that pharmacies and other healthcare providers are abiding by specific rules and regulations. This civil fine shows that DEA and the entire law enforcement community are committed to making sure that such companies are abiding by its mandates.”
This settlement is the result of a joint effort by the DEA Diversion Control Division, Knoxville Resident Office, Diversion Group, and the U.S. Attorney’s Office for the Eastern District of Tennessee. Assistant U.S. Attorneys Jessica R. Sievert and Robert C. McConkey, III, represented the United States.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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Lead Defendants in Methamphetamine Distribution Conspiracy Sentenced to Serve Time in Federal PrisonRead the Press Release
GREENEVILLE, Tenn. – On April 17, 2018, David Byron Jones, 61, of Chatsworth, Georgia, was sentenced by the Honorable R. Leon Jordan, Senior U.S. District Court Judge, to serve 180 months in federal prison for his role in a conspiracy to distribute methamphetamine (meth) in the Eastern District of Tennessee.
Jones pleaded guilty in January 2018. According to his plea agreement on file with U.S. District Court, he admitted to being responsible for at least 1.5 kilograms but less than 4.5 kilograms of actual meth.
In 2016, local, state and federal law enforcement agencies working together began an investigation into an evolving meth distribution network that was distributing multiple kilogram quantities of meth in and around Hawkins County, Tennessee. Jones, who lived in north Georgia, supplied this organization with kilograms of meth that was then distributed by members of conspiracy, most of whom were from Hawkins County, Tennessee. One of his distributors, Jonathan Delph, 51, of Rogersville, Tennessee, was sentenced in March 2018 to serve 210 months in federal prison after pleading guilty and admitting to being responsible for at least 1.5 kilograms but less than 4.5 kilograms of actual meth.
The convictions of Jones and Delph are the result of a 49-count indictment that also charged the following individuals for their roles in the conspiracy:
- Clay Seals, Jr., 51, of Surgoinsville, Tennessee
- Stephanie Bailey, 50, of Hawkins County, Tennessee
- Donna Strong, 54, a/k/a Donna Dunbar, of Surgoinsville, Tennessee
- Curtis Carpenter, 43, of Whitesburg, Tennessee
- Jerry Robinette, 48, of Rogersville, Tennessee
- Edward Smith, 52, of Rogersville, Tennessee
- Tyler Delph, 25, of Rogersville, Tennessee
- Scottie Delph, 49, of Rogersville, Tennessee
- James Michael Whitaker, 54, of Rogersville, Tennessee
- Paul Bledsoe Jr., 43, of Morristown, Tennessee
- William West, 58, a/k/a Bump, of Rogersville, Tennessee
- Frankie Benton, 34, of Hawkins County, Tennessee
- James Dwayne Byington, 50, of Rogersville, Tennessee
- Leonard Brad Eidson, 43, of Bull’s Gap, Tennessee
- Phillip Burton, 49, a/k/a Burger, of Rogersville, Tennessee
- Toby Jones, 40, of Chatsworth, Georgia
All of the individuals charged in this case have been convicted of conspiring to distribute meth. Several have already been sentenced in U.S. District Court and the remainder are scheduled to be sentenced between now and June 12, 2018.
The ongoing investigation leading to the indictment was the product of a partnership between Hawkins County Sheriff’s Department, Third Judicial Drug Task Force, Hamblen County Sheriff’s Department, 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. Attorney J. Christian Lampe represents 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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Occupational Therapist Owner of TSM Sentenced for Making False and Fraudulent Statements Related to Health Care BenefitsRead the Press Release
GREENEVILLE, Tenn. – On April 16, 2018, Jose Penaranda Tan, 58, of Morristown, Tennessee, was sentenced by the Honorable J. Ronnie Greer, U.S. District Judge, to serve 12 months and one day in federal prison. In addition to his prison sentence, Tan must also pay restitution to Medicare, Medicaid (known as TennCare in the state of Tennessee), Cigna, Optum, and Blue Cross Blue Shield (BCBS) of Tennessee in an amount to be determined by Judge Greer.
Tan pleaded guilty in June 2017 to one count of a 35-count indictment charging him with health care fraud, false statements related to health care matters, and aggravated identity theft.
Tan was the owner and operator of Therapeutic Services of Morristown (TSM), a clinic providing occupational, physical, and speech therapy services, specializing in pediatric care. He worked at TSM as a therapist and as a supervisor of various employees, including the therapists and administrative assistants who were responsible for submitting bills to Medicare, TennCare, and private health insurance companies. A detailed account of his offenses is included in the indictment and plea agreement on file with the U.S. District Court.
Tan admitted that over the course of more than two years, he submitted, or caused to be submitted, almost 10,000 false and fraudulent claims to government and private insurers, totaling approximately $1 million. He instructed employees to bill insurers as if TSM therapists were providing individualized therapy sessions to patients, when in fact Tan directed therapists to treat patients in group settings. By falsely claiming that TSM therapists were providing individual therapy, rather than group therapy, Tan was able to secure higher rates of reimbursement from Medicare, TennCare, Cigna, Optum, and BCBS. Additionally, Tan knowingly and fraudulently used the National Provider Identifiers of former therapist employees to bill for therapy services that were provided by non-credentialed therapy assistants, rather than by qualified and credentialed therapists.
This fraud resulted in Medicare, TennCare, Cigna, Optum, and BCBS paying approximately $400,000 to TSM, to which the clinic was not entitled.
“The U.S. Attorney’s Office will continue to pursue charges against health care providers in the Eastern District of Tennessee who fraudulently bill and obtain payments from our federal healthcare benefit programs, such as Medicare and Medicaid, for services not provided. We will use all resources available to ensure the government is reimbursed for funds owed by these individuals and entities who receive payments to which they were not entitled,” said U.S. Attorney J. Douglas Overbey.
This therapist stole the identities of licensed providers and used them to obtain payments from federal health programs,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services Office of Inspector General in Atlanta. “He cheated his patients out of the care they deserved and is now paying the price for his actions.”
This case was investigated by the Department of Health and Human Services – Office of the Inspector General and the Tennessee Bureau of Investigation. Assistant U.S. Attorneys David Gunn and T.J. Harker represented the United States.
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Morristown Resident Sentenced to Eleven Years in Prison for Possession with Intent to Distribute Crack Cocaine and Violation of Her Supervised Release ConditionsRead the Press Release
GREENEVILLE, Tenn. - On April 16, 2018, April Lee West, 35, of Morristown, Tennessee, was sentenced by the Honorable J. Ronnie Greer, U.S. District Judge, to serve 108 months in federal prison for possession with intent to distribute crack cocaine, a Schedule II controlled substance. West was sentenced to serve an additional 24 months in prison as a result of violation of conditions associated with her supervised release from a previous sentence. These sentences will run consecutively for a total of 132 months.
West pleaded guilty to a one-count federal indictment in December 2017. According to the plea agreement on file with U.S. District Court, in August 2016, while under surveillance by law enforcement, West drove from Morristown to Knoxville to purchase 19.2 grams of crack cocaine. Upon returning to Morristown, a law enforcement officer attempted to initiate a traffic stop of West. She did not stop and a slow speed pursuit ensured. West was eventually stopped with the assistance of another officer. Before exiting the vehicle, she hid the recently purchased crack cocaine, as well as 1.2 grams of methamphetamine and various other unlawfully obtained substances including 25 pills of morphine, six pills of hydrocodone, 13 pills of Opana, two pills of oxymorphone and 20 miscellaneous depressants on her person. A search of her vehicle, after a drug canine made a positive hit on the vehicle, produced no controlled substances. However, West ultimately admitted to the officers that she had purchased the crack cocaine and was in possession of it as well as the other substances referenced above.
The Morristown Police Department Narcotics and Vice Unit investigated this case. Assistant U.S. Attorney TJ Harker represented the United States in court proceedings.
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Caryville Resident Enters Guilty Plea for Role in Methamphetamine Distribution ConspiracyRead the Press Release
KNOXVILLE, Tenn. – On April 16, 2018, Linda S. Ward, 55, of Caryville, Tennessee, pleaded guilty to conspiracy to distribute 50 grams or more of methamphetamine. Her sentencing hearing is set for 10:00 a.m., August 6, 2018, in U.S. District Court. She faces a 10-year mandatory minimum sentence.
In February 2018, a federal grand jury returned a seven-count indictment against Ward and ten others alleging various narcotic, firearms, and money laundering offenses. Those charged in the indictment include:
- Nathan S. Marlow, 22, of Duff, Tennessee;
- Nicholas B. Williams, 27, of Winder, Georgia;
- Justin P. Morris, 26, of Auburn, Georgia;
- Coty E. Malicoat, 21, of Duff, Tennessee;
- Michael Chantz Sturdivant, 22, of Jefferson, Georgia;
- Samuel A. Rose, 21, of Clairfield, Tennessee;
- Andrea W. Robbins, 44, of LaFollette, Tennessee;
- Earl J. Jones, 49, of LaFollette, Tennessee;
- Kristin R. Damons, 24, of Winder, Georgia;
- Paige L. Russell, 24, of LaFollette, Tennessee;
In her plea agreement on file with the U.S. District Court, Ward agreed that she distributed between 50 and 150 grams of actual methamphetamine. According to the plea agreement, between July 2017 and February 2018, Ward obtained methamphetamine from Marlow, which she then sold. During the investigation, conversations between Ward and Marlow, in which they discussed obtaining and paying for methamphetamine provided by Marlow, were intercepted by law enforcement.
Russell pleaded guilty in April 2018 to a lesser-included offense and her sentencing is set for August 1, 2018. Jones has also filed plea agreement with the U.S. District Court. Trial for the remaining co-defendants is set for October 30, 2018.
This investigation began in 2016 and initially resulted in the conviction and sentencing of several others, discussed below, for their involvement in the drug conspiracy and money laundering.
James R. Lawson, 32, of Dayton, Tennessee, pleaded guilty in April 2017 to conspiracy to distribute 50 grams or more of methamphetamine and was sentenced in August 2017 to serve 120 months in federal prison, followed by five years of supervised release.
Teri L. Evans, 28, of Jacksboro, Tennessee, pleaded guilty in April 2017 to the lesser-included offense of conspiracy to distribute five grams or more of methamphetamine and was sentenced in April 2017 to serve 60 months in federal prison, followed by four years of supervised release.
Lee Ann Winstead, 57, of Caryville, Tennessee, pleaded guilty in May 2017 to conspiracy to distribute 50 grams or more of methamphetamine and was sentenced in August 2017 to serve 120 months in federal prison, followed by five years of supervised release.
Derrick Avery Cook, 36, of Jacksboro, Tennessee, pleaded guilty in May 2017 to conspiracy to distribute 50 grams or more of methamphetamine and was sentenced in August 2017 to serve 172 months in federal prison, followed by 10 years supervised release.
Larry Gerauld Hatfield, a/k/a Jerry Hatfield, 54, of Jacksboro, Tennessee, pleaded guilty in May 2017 to conspiracy to distribute 50 grams or more of methamphetamine and was sentenced in September 2017 to serve 121 months in federal prison followed by five years of supervised release.
Jeffrey M. Townsend, 57, of Fairmount Georgia, pleaded guilty on June 14, 2017, to conspiracy to distribute 50 grams or more of methamphetamine and was sentenced in October 2017 to serve 168 months in federal prison, followed by 10 years of supervised release.
Terry A. King, 40, of Jacksboro, Tennessee, pleaded guilty in May 2017 to conspiracy to distribute 50 grams or more of methamphetamine and was sentenced in October 2017, to serve 140 months in federal prison, followed by 10 years of supervised release.
Roger L. Young, 49, of Clinton, Tennessee, pleaded guilty in November 2016, to possession with the intent to distribute 50 grams or more of methamphetamine and was sentenced in October 2017 to serve 100 months in federal prison, followed by five years of supervised release.
Josh L. Lawson, 32, of Caryville, Tennessee, pleaded guilty in July 2017 to conspiracy to distribute 50 grams or more of methamphetamine and conspiracy to launder money. He was sentenced in November 2017 to serve 160 months in prison, followed by five years of supervised release.
Jesse M. Pinkerton, 37, of Sharps Chapel, Tennessee, pleaded guilty in June 2017, to conspiracy to distribute 50 grams or more of methamphetamine and was sentenced in November 2017 to serve 197 months in federal prison, followed by 10 years of supervised release.
James W. Lawson, 56, of Caryville, Tennessee, pleaded guilty in June 2017 to conspiracy to distribute 50 grams or more of methamphetamine and conspiracy to launder money. He was sentenced in December 2017 to serve 300 months in federal prison, followed by five years of supervised release.
Law enforcement agencies participating in this joint investigation include the Eighth Judicial Drug Task Force; Seventh Judicial Crime Task Force; Ninth Judicial Drug Task Force; Tenth Judicial Drug Task Force; Anderson County Sheriff’s Office; Campbell County Sheriff’s Office; Knox County Sheriff’s Office; Oak Ridge Police Department; LaFollette Police Department; Tennessee Highway Patrol; Tennessee Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms, and Explosives; U.S. Postal Inspection Service; U.S. Marshal Service; and Drug Enforcement Administration. Assistant U.S. Attorney Caryn L. Hebets represents the United States in court proceedings.
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Justice Department Announces Nationwide Initiative to Combat Sexual Harassment in HousingRead the Press Release
KNOXVILLE, Tenn. — Today, as the Department of Justice recognizes the 50th Anniversary of the Fair Housing Act, Attorney General Jeff Sessions announced the nationwide rollout of an initiative aimed at increasing awareness and reporting of sexual harassment in housing. The announcement included an interagency task force between the Department of Housing and Urban Development (HUD) and the Justice Department to combat sexual harassment in housing, an outreach toolkit, and a public awareness campaign. This three-pronged approach will strengthen the Department’s efforts to combat sexual harassment in housing.
“Sexual harassment in housing is illegal, immoral, and unacceptable," said Attorney General Sessions. “It is all too common today, as too many landlords, managers, and their employees attempt to prey on vulnerable women. We will not hesitate to pursue these predators and enforce the law. In October, I ordered a new initiative to bring more of these cases, and we have already won relief for 15 victims. Today we announce three new steps to make the initiative more effective and to win more cases. I want to thank the dedicated and committed professionals in our Civil Rights Division and our partners in the Department of Housing and Urban Development for their hard work in this effort. We will continue to aggressively pursue harassers, because everyone has a right to be safe in their home.”
“All discrimination stains the very fabric of our nation, but HUD is especially focused on protecting the right of everyone to feel safe and secure in their homes, free from unwanted sexual harassment,” said Secretary Ben Carson. “No person should have to tolerate unwanted sexual advances in order to keep a roof over his or her head. Part of our mission at HUD is to provide safe housing and we will remain diligent in this mission to protect those we serve. I look forward to working with Attorney General Sessions and the Department of Justice as part of this task force to bring an end to this type of discrimination.”
“The U.S. Attorney’s Office for the Eastern District of Tennessee supports this important initiative of Attorney General Sessions and will work with HUD and our law enforcement partners to enforce the laws and ensure that these innocent victims are aware of their rights to have a safe and secure place for their families to live without fear of harassment or discrimination,” said U.S. Attorney J. Douglas Overbey, Eastern District of Tennessee.
In October 2017, the Justice Department announced an initiative to combat sexual harassment in housing and launched pilot programs in D.C. and the Western District of Virginia. The initiative sought to increase the Department’s efforts to protect women from harassment by landlords, property managers, maintenance workers, security guards, and other employees and representatives of rental property owners. During the pilots, the Department developed and tested ways to better connect both with victims of sexual harassment in housing and with those organizations that victims may turn to first for help – including law enforcement, legal services providers, public housing authorities, sexual assault services providers, and shelters. The Department also tested certain aspects of the initiative in other jurisdictions, including New Jersey, the Central District of California, Massachusetts, Vermont, and Michigan.
The two pilot programs generated an upswing in harassment reporting to the Department from both D.C. and the Western District of Virginia. In D.C., the Department generated six leads since the October 2017 launch. In Virginia, the Department generated three leads. While the Justice Department recognizes that leads and investigations do not always lead to enforcement actions, the pilot program’s results—when extrapolated across all the U.S. Attorney’s Offices across the country—could lead to hundreds of new reports of sexual harassment in housing across the country.
Because of these promising results, the Department is rolling out three major components to the Initiative.
First, the new HUD-DOJ Task Force to Combat Sexual Harassment in Housing will drive a shared strategy between the Department and HUD for combatting sexual harassment in housing across the country. It will focus on five key areas: continued data sharing and analysis, joint development of training, evaluation of public housing complaint mechanisms, coordination of public outreach and press strategy, and review of federal policies.
Second, the outreach toolkit is designed to leverage the Justice Department’s nationwide network of U.S. Attorney’s Offices. The toolkit provides templates, guidance, and checklists based on pilot program feedback. It ultimately will amplify available enforcement resources and help victims of sexual harassment connect with the Department.
Third, the public awareness campaign has three major components: a partnership package with relevant stakeholders, launch of a social media campaign, and Public Service Announcements (PSAs) run by individual U.S. Attorney’s offices. The campaign is specifically designed to raise awareness, and make it easier for victims all over the country to find resources and report harassment.
More information about the Civil Rights Division and the civil rights laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they may have been victims of sexual harassment in housing should call the Department at 1-844-380-6178, send an e-mail to [email protected], or contact HUD at 1-800-669-9777. If you have information or questions about any other housing discrimination, you can contact the Department at 1-800-896-7743.
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Supporting Crime Victims’ RightsRead the Press Release
Recent statistics show Americans are the victims of 20 million crimes each year, affecting both individuals and communities. Since 1981, a week in April has been designated as National Crime Victims’ Rights Week, to bring attention to the rights of victims, highlight the impact crime has on families, friends and the community, and promote laws, policies, and programs to help victims of crime. This week provides an opportunity for communities 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. The Department of Justice Office for Victims of Crime (OVC) leads communities throughout the country in their annual observances of National Crime Victims’ Rights Week by promoting victims’ rights and honoring crime victims and those who advocate on their behalf. This year, April 8-14, 2018, is designated as National Crime Victims’ Rights Week. The theme, Expand the Circle: Reach All Victims, emphasizes the importance of how the investment of communities in crime victims expands the opportunity for them to disclose their victimization, connect with services, and receive the support they need. Building relationships and engaging our communities across professional, cultural, economic, and other divides to remove barriers to reporting and accessing services is essential to supporting the needs of all victims of crime. In 2004, Congress passed the Crime Victims’ Rights Act, giving victims in federal criminal proceedings certain enforceable rights. The U.S. Attorney's Office for the Eastern District of Tennessee is committed to ensuring crime victims associated with prosecutions handled by our office are provided with all the rights they are entitled to by law. Our district, like federal districts across the country, has dedicated personnel to ensure victims are treated with fairness and respect as they journey through the federal criminal justice system. Among other things, our victim assistance specialists provide notice of case events; inform victims of their rights, and keep victims informed about case proceedings. The U.S. Attorney’s Office plays a vital role in helping to fund state victim compensation and assistance programs through its collection of court-ordered fines and assessments. The Crime Victims Fund, administered by OVC, supports a variety of programs and services that focus on helping victims in the immediate aftermath of crime and continue to support them as they rebuild their lives. Fines and assessments ordered by the U.S. District Court and collected by the U.S. Attorney’s Office go directly into the Crime Victims Fund to be distributed to every U.S. state and territory to finance their victim compensation and assistance programs. The prosecutors in the U.S. Attorney’s Office for the Eastern District of Tennessee have always been 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. And, we will continue to prosecute the individuals who commit these crimes, sending a message to other would-be perpetrators that their actions will not be tolerated. I encourage everyone to participate in events in your community during National Crime Victims’ Week. While this particular week is dedicated to all crime victims, there are specific victim-related observances throughout the year in which you can also participate. For additional information about these events as well as National Crime Victims’ Rights Week, please visit OVC’s website at www.ovc.gov. J. Douglas Overbey United States Attorney Eastern District of TennesseeStatement to PressRead the Press Release
On April 5, 2018, a federal search warrant was executed in Grainger County, Tennessee, by agents with the Internal Revenue Service – Criminal Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Criminal Investigation Division, and the Tennessee Highway Patrol, While it is the policy of the U.S. Attorney’s Office not to comment on ongoing investigations and/or pending litigation, documents associated with case #2:18-MJ-66, that are on file with the U.S. District Court and available to the public, can be accessed through www.pacer.gov. You can also monitor the U.S. District Court calendar online at http://www.tned.uscourts.gov/district-calendar for any scheduled court hearings regarding this or any other case being handled by our office.
Tennessee State Inmate Sentenced to Serve 46 Months in Federal Prison for Conspiracy to Defraud the Internal Revenue ServiceRead the Press Release
KNOXVILLE, Tenn. – On April 2, 2018, Larry Steven Covington, Jr., 39, of Knoxville, Tennessee, was sentenced by the Honorable Thomas A. Varlan, Chief U.S. District Judge, to serve 46 months in federal prison for his role in a conspiracy to defraud the U.S. Government.
Covington pleaded guilty to a one-count information in May 2017. According to the plea agreement on file with U.S. District Court, Covington learned how to prepare and file fraudulent income tax returns from another inmate while he was serving time in a Tennessee state correctional facility in 2008. Covington illegally obtained Personal Identification Information (PII), including social security numbers, from mostly other inmates, and used this information to either create false tax returns, which he mailed to his mother, or provided the information to his mother over the phone so she could prepare the forms and mail them to the IRS from her Knoxville residence.
Some of the refunds were deposited directly by the IRS into two bank accounts created by Covington for which he provided routing information along with the fraudulent tax forms. He instructed his mother to withdraw the money from these accounts, retain some for herself and purchase Green Dot cards for Covington with the remainder. In some cases, treasury checks were mailed directly to Covington’s mother, which she cashed and put the funds on a Green Dot Card for Covington.
Between the tax processing years of 2009 and 2015, over 550 fraudulent returns were filed using multiple addresses in the Eastern District of Tennessee. The attempted refunds totaled $905,213.74. The actual amount of loss was roughly $163,777.89. In addition to his federal prison sentenced, Covington was ordered to pay $163,777.89 in restitution to the Internal Revenue Service (IRS).
“The U.S. Attorney’s Office will prosecute all individuals who illegally obtain information and use it to commit fraud against the United States and unsuspecting victims by filing fraudulent federal income tax returns,” said U.S. Attorney J. Douglas Overbey. “Additionally, our prosecutors will continue to work with our federal and state law enforcement partners to investigate and stop federal crimes being committed by inmates while they are serving time in our state prison system,” added U.S. Attorney Overbey.
“Today’s sentence serves as a well-timed reminder this tax season; theft from American taxpayers by way of fraudulent tax returns will not be tolerated,” said Christopher Altemus, IRS Criminal Investigation Acting Special Agent in Charge of the Nashville Field Office.
Agencies involved in the investigation of this case included IRS Criminal Investigation and the U.S Postal Inspection Service. Assistant U.S. Attorney Jennifer Kolman represented the United States in court proceedings.
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Oak Ridge Resident Sentenced to 168 Months in Federal Prison for Downloading and Sharing Child Pornography Through Peer-To-Peer File Sharing SoftwareRead the Press Release
KNOXVILLE, Tenn.- On March 28, 2018, James Edward Hiatt, 33, of Oak Ridge, Tennessee, was sentenced by the Honorable Thomas A. Varlan, Chief U.S. District Judge, to serve168 months in federal prison for distributing and possessing child pornography. Following his release from prison, Hiatt will be supervised by the U.S. Probation Office for 14 years and required to register with the sex offender registry in any state in which he resides, works, or attends school.
Hiatt pleaded guilty in May 2017 to federal charges stemming from his use of peer-to-peer file sharing software to obtain child pornography and make child pornography available for others to download via the internet. A search of Hiatt’s residence resulted in the seizure of evidence confirming that he had been distributing child pornography that he had accessed, downloaded, and stored on his computer.
This investigation was conducted by the U.S. Department of Homeland Security and Knoxville Police Department’s Internet Crimes Against Children Task Force. Assistant U.S. Attorney Matthew Morris represented the United States in court proceedings.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Darrell Lansing Hobbs Sentenced for Counterfeiting Conspiracy and Being a Felon in Possession of FirearmsRead the Press Release
GREENEVILLE, Tenn. – On March 27, 2018, Darrell Lansing Hobbs, a/k/a Darrell “Lance” Hobbs, 36, of Gray, Tennessee, was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 120 months in prison for his role in a conspiracy to produce counterfeit obligations of the United States with intent to defraud the government, possession of stolen firearms and being a felon in possession of firearms. The court imposed the statutory maximums of 120 months on both gun charges and 60 months on the counterfeiting conspiracy charges. The sentences will run concurrently.
Hobbs pleaded guilty in October 2017 to the charges referenced above. Details of the conspiracy are included in his plea agreement on file with U.S. District Court. According to the plea agreement, from March 2017 through July 2017 Hobbs and three co-conspirators produced counterfeit Federal Reserve notes, which were used and attempted to be used to purchase various items from retail outlets and private individuals, including firearms, tools and at least one vehicle. Additionally, he and another co-conspirator sold firearms during May and June 2017 that were considered stolen since they had previously been purchased by them using counterfeit notes. As a convicted felon, it was illegal for Hobbs to possess firearms or ammunition at any time.
Hobbs along with his co-conspirators produced the counterfeit notes by taping real money to a flatbed scanner, scanning them, and then printing the front and back of the scanned notes to various types of parchment paper purchased from a local retail establishment. Investigators determined that Hobbs and co-conspirators produced between $95,000 and $150,000 in counterfeit Federal Reserve notes.
Others charged in this conspiracy included: Sean Bowman, 19, of Jonesborough, Tennessee; Robert William Guy, 19, of Kingsport, Tennessee; and Jason Massengill, 39, of Kingsport, Tennessee. Bowman pleaded guilty to the conspiracy and was sentenced to serve five years of probation after serving approximately five months in prison. Guy pleaded guilty to the conspiracy and awaits sentencing. Massengill also pleaded guilty to the conspiracy and was recently sentenced to serve 37 months in federal prison.
Investigative agencies participating in this case included the United States Secret Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, Kingsport Police Department, Washington County Sheriff’s Office, Carter County Sheriff’s Office, Bluff City Police Department, Erwin Police Department and Elizabethton Police Department. Assistant U.S. Attorney TJ Harker 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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Cosby Resident Sentenced to Serve 79 Months in Federal Prison for Possession of Stolen FirearmsRead the Press Release
GREENEVILLE, Tenn. – On March 27, 2018, Rodney Shackleford, 26, of Cosby, Tennessee, was sentenced by the Honorable J. Ronnie Greer, U.S. District Judge, to serve 79 months in federal prison for possessing stolen firearms. Shackleford pleaded guilty to a one-count information in October 2016.
Two accomplices of Shackleford, James Summers, 26, and Tiffany Gentry, 32, both of Newport Tennessee, were indicted in October 2016 and also charged with possession of stolen firearms. Additionally, Summers was charged with being a convicted felon in possession of a firearm and Gentry was charged with lying to the government. Summers previously pleaded guilty and was sentenced in November 2017 to serve 84 months in federal prison. Gentry also pleaded guilty and was sentenced to probation.
According to the plea agreement on file with U.S. District Court, in February 2016, Shackleford and Summers burglarized a residence in Newport, Tennessee, and stole, among other things, seven firearms. One of the firearms included a high-capacity magazine capable of holding 30 rounds of ammunition. The stolen firearms were loaded into a vehicle belonging to Gentry and driven back to the motel where they all resided. Summers and Gentry made an agreement to sell the firearms to a relative of Gentry and use the proceeds to purchase illegal narcotics.
Agencies involved in the investigation of this case included the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Cocke County Sheriff’s Department. Assistant U.S. Attorney TJ Harker 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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Federal Grand Jury Indicts 44 Individuals in Methamphetamine Distribution ConspiracyRead the Press Release
GREENEVILLE, Tenn. – On January 9, 2018, a federal Grand Jury in Greeneville returned a 30-count indictment against the following individuals for their roles in the distribution of methamphetamine:
- Samuel William Aloisio, 40, of Greeneville, Tennessee
- Kenneth Lee Sholtz, 49, of Summerville, Georgia
- Rockcella Nicole Russell, 31, of Summerville, Georgia
- Troy Dale Sholtz, 54, of Rossville, Georgia
- Christal Gale Bean, 40 of Knoxville, Tennessee
- Leslie William Steelman, 47, of Oliver Springs, Tennessee
- Danielle Marie Coatney, 37, of Townsend, Tennessee
- Elizabeth Jean Patterson, 22, of Rocky Top, Tennessee
- Brandon Joseph Thorpe, 33, of Bristol, Tennessee
- David Henry Estep, Jr., 38, of Church Hill, Tennessee
- Lisa Carol Weems, 49, of Morristown, Tennessee
- Timothy Millard Rose, 34, of Kingsport, Tennessee
- Paul Joseph Whitt, II, 54, of Honaker, Virginia
- Paul David Borror, 31, of Bristol, Tennessee
- Jason Abraham Clements, 42, of Kingsport, Tennessee
- David Dewolf Derrick, 43, of Kingsport, Tennessee
- Kevin Scott Dingus, 37, of Glade Springs, Virginia
- Lawrence Powell Earhart, II, 54 of Bluff City, Tennessee
- John Roosevelt Farner, Jr., 40, of Piney Flats, Tennessee
- Adam Randall Fulbright, 31, of Bristol, Virginia
- Michael Ryan Goins, 26, of Church Hill, Tennessee
- Timothy Barry Hall, 38, of Saint Paul, Virginia
- Jason Darrell Larkins, 40, of Kingsport, Tennessee
- Gary Allen Miller, 47, of Bristol, Tennessee
- Alexander Andrew Milne, 25, of Kingsport, Tennessee
- Charles William Mitchell, Jr., 34, of Bluff City, Tennessee
- Crystal Diane Pharis, 37, of Bristol, Tennessee
- Christopher Allen Reynolds, 36, of Bristol, Tennessee
- Rachel Elizabeth Sammons, 32, of Bristol, Tennessee
- Robert Jessee Estes, 47, of Rogersville, Tennessee
- Marketta Rae Jarnigan, 26, of Rogersville, Tennessee
- Scotty Ledon Foster, 49, of Lafayette, Georgia
- Cameron Lowry, 40, of Old Hickory, Tennessee
- David Alan Emery, 41, of Clinton, Tennessee
- Crystal Mcguire, 42 of Powell, Tennessee
- Larkin Henry Hensley, 41, of Clinton, Tennessee
- Lashawn Johnson, 34, of Knoxville, Tennessee
- Randall Wood, 39, of Clinton, Tennessee
- Stacy Jo Ferguson, 37 of Rocky Top, Tennessee
- David Dunlap, 47, of Oliver Springs, Tennessee
- Edward Uthe, 53, of Mascot, Tennessee
- Mitchell Chadwick Dorris, 30, of Knoxville, Tennessee
- Kristen Perkins, 44, of Knoxville, Tennessee
- Gerald Brummett, 39, of Clinton, Tennessee
A trial date before the Honorable Leon Jordan, Senior U.S. District Court Judge, has not yet been set.
The indictment, on file with the U.S. District Court, alleges that each of these individuals was involved in a conspiracy to distribute 50 grams or more of methamphetamine in the Eastern District of Tennessee and elsewhere. Kenneth Sholtz, Russell, Weems, Rose, Steelman, Patterson, Thorpe, Whitt, Borror, Derrick, Farner, Fulbright, Hall, Johnson, and Uthe were also each charged with possession of a firearm in furtherance of a drug trafficking crime. Patterson, and Thorpe are each charged with an additional 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 methamphetamine as well as the unlawful possession firearms and money laundering.
If convicted of the methamphetamine conspiracy charge, each faces a minimum mandatory prison term of at least 10 years and up to life, at least five years of supervised release, a fine of up to $10,000,000, any applicable forfeiture, and a $100 special assessment. The punishment for the firearm charges returned against Kenneth Sholtz, Russell, Weems, Rose, Steelman, Patterson, Thorpe, Whitt, Borror, Derrick, Farner, Fulbright, Hall, Johnson, and Uthe is a minimum mandatory term of at least five years and up to life in prison, 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. Patterson and Thorpe, on the second firearms charge returned against them, face a minimum mandatory 25 years in prison to life in prison, which must be served consecutively to any other prison term.
The ongoing investigation leading to the indictment was the product of a partnership between the Kingsport Police Department, Bristol Police Department, Sullivan County Sheriff’s Department, Second Judicial Drug Task Force, Hawkins County Sheriff’s Office, Soddy Daisy Police Department, Clinton Police Department, Anderson County Sheriff’s Office, Oliver Springs Police Department, Oak Ridge Police Department, Seventh Judicial District Crime Task Force, Eighth Judicial District Crime Task Force, Campbell County Sheriff’s Office, Bristol Virginia Police Department, Tennessee Highway Patrol, U.S. Marshal Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, and FBI Joint Terrorism Task Force. Assistant U.S. Attorneys J. Gregory Bowman and Robert M. Reeves 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.
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Jason Massengill Sentenced to over Three Years for Role in Counterfeiting ConspiracyRead the Press Release
GREENEVILLE, Tenn. – On March 22, 2018, Jason Massengill, 39, of Kingsport, Tennessee, was sentenced to serve 37 months in federal prison by the Honorable J. Ronnie Greer, U.S. District Judge, for his role in a conspiracy to produce counterfeit obligations of the United States with intent to defraud the government.
Massengill pleaded guilty in October 2017 to one count of a four-count indictment charging him and three co-conspirators with the offense referenced above. Details of their scheme are included in Massengill’s plea agreement on file with U.S. District Court. According to the plea agreement, from March 2017 through July 2017 Massengill and his co-conspirators produced counterfeit Federal Reserve notes, which were used and attempted to be used to purchase various items from retail outlets and private individuals. One such purchase was a vehicle from two individuals in Elizabethton, Tennessee. This vehicle was later proven to have been used by Massengill and one of his co-conspirators as a place to produce and hide the counterfeit notes as well as supplies needed to make them.
Massengill along with his co-conspirators produced the counterfeit notes by taping real money to a flatbed scanner, scanning it, and then printing the front and back of the scanned notes to various types of parchment paper purchased from a local retail establishment. Investigators determined that Massengill and co-conspirators produced between $95,000 and $150,000 in counterfeit Federal Reserve notes, of which Massengill was personally involved with at least $35,000.
Others charged in this conspiracy included: Sean Bowman, 19, of Jonesborough, Tennessee; Robert William Guy, 19, of Kingsport, Tennessee; and Darrell Lansing Hobbs, a/k/a Darrell “Lance” Hobbs, 36, of Gray, Tennessee. Bowman pleaded guilty to the conspiracy and was sentenced to serve five years of probation after serving approximately five months in prison. Guy also pleaded guilty to the conspiracy and awaits sentencing. Hobbs pleaded guilty to conspiracy to produce counterfeit obligations of the United States with intent to defraud the government as well as begin a felon in possession of firearms and possession of stolen firearms. Sentencing for Hobbs is set for March 27, 2018, in U.S. District Court in Greeneville.
Investigative agencies participating in this case included the United States Secret Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, Kingsport Police Department, Washington County Sheriff’s Office, Carter County Sheriff’s Office, Bluff City Police Department, Erwin Police Department and Elizabethton Police Department. Assistant U.S. Attorney TJ Harker represented the United States in court proceedings.
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Gayle Sicard Shapiro Green Sentenced to Serve Sixteen Months in Prison for Mail Fraud and Money LaunderingRead the Press Release
GREENEVILLE, Tenn. – On March 21, 2017, Gayle Sicard Shapiro Green, 65, of Greeneville Tennessee, was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 16 months in federal prison for mail fraud and money laundering. Green was the former Greeneville City Schools Director of Finance and volunteer treasurer for both the Tennessee Basketry Association and the Greater Kingsport Kennel Club.
Upon her release from prison, U.S. Probation will supervise Green for three years. Additionally, she was ordered to pay $116,309 in restitution to the victims of her crime.
Green pleaded guilty in September 2017 and admitted that while serving as volunteer treasurer for the Greater Kingsport Kennel Club and the Tennessee Basketry Association she stole and converted to her own use $116,309.00. The money was stolen over a 10-year period using various methods including fraudulently withdrawing and transferring funds and skimming cash from sponsored events. She concealed her thefts by providing false financial statements, forged audits, and forged financial reviews. The stolen money should have gone to community service projects including scholarships at the University of Tennessee College of Veterinary Medicine and angel baskets, which are provided by the Tennessee Basketry Association, through the hospital, to families of deceased infants to transport the infant’s body from the hospital to a funeral home.
This case was investigated by the FBI. Assistant U.S. Attorney Helen Smith represented the United States.
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Mountain City Police Lieutenant Sentenced to Serve 37 Months in Federal Prison for Drug and Firearm OffensesRead the Press Release
GREENEVILLE, Tenn. – On March 19, 2018, Ronald Glen Shupe, 44, of Butler, Tennessee, was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 37 months in federal prison for possession with the intent to distribute oxycodone, a Schedule II controlled substance, and the use of a firearm during and relation to a drug trafficking offense. Shupe was a lieutenant with the Mountain City Police Department at the time of his offenses. Upon his release from prison, U.S Probation will supervise him for three years.
According to information on file with the U.S. District Court, in 2016 and 2017, while serving as the third-ranking member of the Mountain City Police Department, Shupe bought and sold oxycodone pills, supplied pills to another Mountain City Police Officer, and used controlled substances, including methamphetamine and pain pills. In one incident, a confidential witness reported that in 2017 she gave Mr. Shupe an intravenous injection of methamphetamine while he was in his patrol car and on duty. In November 2017, Mr. Shupe purchased oxycodone pills for distribution from another individual working on behalf of law enforcement. During the transaction, Shupe was in full uniform, driving a Mountain City Police car, and armed with a department-issued Glock pistol and ammunition.
“Law enforcement officers are sworn to protect the public and uphold the law. The U.S Attorney’s office will prosecute vigorously those that choose to violate that trust by committing crimes, especially while on duty and in uniform,” said J. Douglas Overbey, U.S. Attorney for the Eastern District of Tennessee.
Renae McDermott, FBI Special Agent in Charge, Knoxville Division commented, “Citizens have the right to expect that law enforcement officers act legally and in accordance with the law. The FBI is committed to ensuring that all violations of the law are aggressively investigated.”
Agencies involved in this investigation included the Tennessee Bureau of Investigation, Federal Bureau of Investigation, First Judicial District Attorney’s Office, and Johnson County Sheriff’s Department. Assistant U.S. Attorney David Gunn represented the United States in court proceedings.
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Knoxville Man Charged in Recent Suntrust Bank RobberyRead the Press Release
KNOXVILLE, Tenn. – On Tuesday, March 13, 2018, Mark A. Stallings, 58, of Strawberry Plains, Tennessee, was arrested for the March 5, 2018, robbery of the Suntrust Bank on Andrew Johnson Highway in Knoxville. Stallings appeared before the Honorable Dennis H. Inman, U.S. Magistrate Judge on March 14, 2018. He will remain in custody pending a preliminary hearing scheduled for March 21, 2018.
Details of the robbery can be found in the criminal complaint and supporting affidavit on file with the U.S. District Court. According to the affidavit, on March 5, 2018, Stallings entered the Suntrust Bank and passed a note to the teller demanding money.
The arrest of Stallings is the result of the joint efforts of the FBI Safe Streets Task Force, comprised of the FBI, Knoxville Police Department, Knox County Sheriff’s Office, and Knox County Major Crimes Unit. Assistant U.S. Attorney Kelly A. Norris 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.
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Physician Owner of HNC and Wife Sentenced for Health Care Fraud Offenses Involving Prescription Opiate Pain MedicationRead the Press Release
GREENEVILLE, Tenn. – On March 14, 2018, Dr. Abdelrahman Mohamed, 64, and Cecilia Manacsa, 59, both of Morristown, Tennessee, were sentenced by the Honorable J. Ronnie Greer, U.S. District Judge, to serve 36 months and 16 months respectively in federal prison. In addition to his prison sentence, Mohamed also paid $730,000 in restitution.
Mohamed and Manacsa both pleaded guilty in September 2017, to an 11-count information charging them with one count of conspiracy to commit health care fraud and 10 counts of health care fraud.
Mohamed was the owner and operator of Hamblen Neuroscience Center (HNC), a neurology and pain management facility located in Morristown, Tennessee. Manacsa, his wife, worked at HNC as a supervisor of various employees, including the employee responsible for submitting bills to Medicare and Medicaid (known as TennCare in the state of Tennessee). A detailed account of their offenses is included in the information and plea agreements on file with the U.S. District Court.
Mohamed, who was the only physician on staff at HNC, provided medical treatment to a variety of patients, most of whom sought treatment for chronic pain and had health insurance provided by TennCare or Medicare. Between January 2012 and September 2016 Mohamed and Manacsa developed a scheme to schedule far more patients per day than could be attended to by Mohamed. On average, they scheduled between 40 and 60 pain management patients per day, during the estimated six-hour period that Mohamed worked. To deal with the high volume, on many occasions staff members were instructed to line up the patients in the hallway outside of Mohamed's office, escort the first patient into the office for a one to two minute open-door meeting, then hand Mohamed a partially completed prescription for an opiate pain management medication, which he signed and gave to the patient. This process was repeated until all waiting patients had received a prescription for a controlled substance. Each patient was then scheduled for another appointment the following month at which time the process was repeated.
Mohamed admitted that during the fraud he issued thousands of prescriptions for opiate controlled substances and frequently did so on a recurring monthly basis, often for years. He also admitted that when he issued such prescriptions he was doing so outside of the scope of ordinary medical practice.
After these visits, Mohamed and Manacsa instructed HNC staff members to submit fraudulent bills to TennCare and Medicare claiming that they were owed approximately $1,538,000 for services they had not actually provided to these patients. This fraud resulted in Medicare and TennCare paying approximately $733,000 to HNC.
“This case sends a clear message to physicians and other health care providers in the Eastern District of Tennessee that investigating and prosecuting healthcare fraud related to prescription opioids is a top priority for the Department of Justice as well as the U.S. Attorney’s Office,” said J. Douglas Overbey, U.S. Attorney for the Eastern District of Tennessee. “Our district’s participation in the Opioid Fraud and Abuse Detection Unit will provide us with the resources necessary to effectively investigate and prosecute medical providers, such as Mohamed and Manacsa, who are contributing to this epidemic by unlawfully diverting or dispensing opioids outside the scope of acceptable professional practice,” added U.S. Attorney Overbey.
“These defendants enriched themselves at the expense of taxpayers by defrauding Medicare and TennCare,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General. “Their actions risked the health and safety of patients by prescribing opioids without a comprehensive physical exam. This sentence sends a strong message
that this type of behavior will be dealt with seriously,” added Jackson.
This case was investigated by the Tennessee Bureau of Investigation and the Department of Health and Human Services – Office of the Inspector General. Assistance was provided by the Tennessee Department of Health as well as District Attorney General Dan Armstrong and the District Attorney’s Office for the Third Judicial District. Assistant U.S. Attorney T.J. Harker represented the United States.
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Robert L. Rose Sentenced to 295 Months in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
KNOXVILLE, Tenn. – On March 13, 2018, Robert L. Rose, 65, of Knoxville, Tennessee, was sentenced to serve a total of 295 months in prison by the Honorable Pamela L. Reeves, U.S. District Judge. Upon his release, Rose will be under the supervision of U.S. Probation for five years.
Rose pleaded guilty in October 2017 to a federal grand jury indictment charging him with a conspiracy to distribute 50 grams or more of methamphetamine and possessing a firearm in furtherance of a drug trafficking offense.
As a result of this investigation, several other individuals have been convicted and sentenced for their involvement in the drug conspiracy.
Brandon S. Hill, 42, of Knoxville, Tennessee, was sentenced on November 20, 2017, to serve 115 months in prison, followed by five years of supervised release. Hill pleaded guilty in July 2017 to conspiracy to distribute 50 grams or more of methamphetamine to possessing a firearm in furtherance of a drug trafficking offense.
Ruth Ann Oliver, 42, of Kodak, Tennessee, was sentenced on December 14, 2017, to serve 92 months in prison, followed by four years of supervised release. Oliver pleaded guilty in June 2017 to conspiracy to distribute 50 grams or more of methamphetamine.
Bobby R. Leach, 52, of Blaine, Tennessee, was sentenced on November 20, 2017, to serve 151 months in prison, followed by five years of supervised release. Leach pleaded guilty in July 2017 to conspiracy to distribute 50 grams or more of methamphetamine.
Melvin L. Swiney, 38, of Rutledge, Tennessee, was sentenced on November 9, 2017, to serve 138 months in prison, followed by five years of supervised release. Swiney pleaded guilty in July 2017 to conspiracy to distribute 50 grams or more of methamphetamine and to possessing a firearm in furtherance of a drug trafficking offense.
Kevin R. Addington, 47, of Wise, Virginia, was sentenced on November 8, 2017, to serve 144 months in prison, followed by 10 years of supervised release. Addington pleaded guilty in June 2017 to conspiracy to distribute 50 grams or more of methamphetamine.
John R. Elrod, 55, of Talbott, Tennessee, was sentenced on November 28, 2017, to serve 120 months in prison, followed by five years of supervised release. Elrod pleaded guilty in July 2017 to conspiracy to distribute 50 grams or more of methamphetamine.
William A. Dyer, 49, of Knoxville, Tennessee, was sentenced on November 8, 2017, to serve 151 months in prison, followed by five years of supervised release. Dyer pleaded guilty in June 2017 to conspiracy to distribute 50 grams or more of methamphetamine.
Melissa D. Coffey, 45, of Rutledge, Tennessee, was sentenced on February 8, 2018, to serve 102 months in prison, followed by five years of supervised release. Melissa Coffey pleaded guilty in July 2017 to conspiracy to distribute 50 grams or more of methamphetamine.
Tiffany N. Coffey, 23, of Morristown, Tennessee, was sentenced on November 29, 2017, to serve 120 months in prison, followed by five years of supervised release. Tiffany Coffey pleaded guilty in July 2017, to conspiracy to distribute 50 grams or more of methamphetamine.
The indictment and subsequent conviction of Rose and other co-conspirators was the result of a three-year investigation conducted by the Bean Station Police Department, Grainger County Sheriff’s Office, Knox County Sheriff’s Office, Knoxville Police Department, Tennessee 4th Judicial Drug Task Force, Southwest Virginia Narcotics Task Force, Tennessee Highway Patrol, Tennessee Bureau of Investigation, and Drug Enforcement Administration. Assistant U.S. Attorney Caryn L. Hebets represented the United States.
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Knoxville Resident Charged with Methamphetamine and Fentanyl Conspiracy Resulting in at Least One Overdose DeathRead the Press Release
KNOXVILLE, Tenn. – On March 6, 2018, a federal grand jury returned a four-count indictment against Ricky Davis, 44 of Knoxville, Tennessee, for his role in a conspiracy to distribute methamphetamine and fentanyl analogues resulting in the death of at least one person. Davis appeared in court on March 7, 2018, before U.S. Magistrate Judge H. Bruce Guyton and pleaded not guilty to the charges in the indictment. He was ordered to be held in custody pending a formal detention hearing.
Trial has been set for May 8, 2018, before the Honorable Pamela L. Reeves, U.S. District Court Judge. If convicted, Davis faces life in prison and fines of up to $20,000,000.
In addition to the conspiracy charge referenced above, the indictment alleges that Davis distributed a quantity of methamphetamine and fentanyl analogues that resulted in the death of at least one person, an additional distribution of methamphetamine, and possession of methamphetamine with the intent to distribute.
U.S. Attorney J. Douglas Overbey said, “As the opioid crisis continues, cheaper and more powerful opioid drugs, such as fentanyl, are increasingly being sought by those who became addicted to prescription opioids. These fentanyl drugs are especially deadly, whether taken alone or with other narcotics such as methamphetamine. Recent statistics provided by the AHIDTA Drug Related Death Task Force show that three to four individuals die from overdoses every week in the city of Knoxville alone. This must stop. My office will prosecute aggressively the drug dealers who market this deadly poison on our streets.”
“We appreciate the collaborative team effort that went into this investigation that resulted in the charges in this case,” said Knoxville Police Chief David Rausch. “The deaths associated with the opioid crisis continue to rise and we must hold those responsible for dealing these drugs accountable for their actions. Fentanyl and its derivatives are being combined in all drugs on the street and it is killing too many in our community and families are devastated. The message to the drug dealers should be clear, we will hold you accountable. We appreciate the full support of the U.S. Attorney in this effort,” added Chief Rausch.
This indictment is the result of an investigation by the Knoxville Police Department (KPD) and Appalachia HIDTA Drug Related Death Task Force. The task force includes members of the KPD, Drug Enforcement Administration, Knox County District Attorney’s Office, and Regional Forensic Center. Other components of the KPD, including members of the Violent Crimes Unit and the Patrol Division, as well as other agents of the DEA, also participated in the investigation. Assistant U.S. Attorney Tracy L. Stone 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.
Craig Fine Charged with Armed Robbery of First Tennessee BankRead the Press Release
KNOXVILLE, Tenn. – On March 8, 2018, Craig, Fine, 48, of Knoxville, Tennessee, was arrested and charged with armed bank robbery and brandishing and discharging a firearm during a crime of violence. Fine appeared in U.S District Court on March 9, 2018, before the Honorable H. Bruce Guyton, U.S. Magistrate Judge. He will remain in custody pending a preliminary hearing at 1:30 p.m., on March 22, 2018, in U.S. District Court.
Details of the robbery can be found in the criminal complaint and supporting affidavit on file with the U.S. District Court. According to the affidavit, on March 6, 2018, Fine entered the First Tennessee Bank on Merchants Drive in Knoxville with a firearm and demanded money from the bank teller. During the incident, Fine discharged a firearm. Additionally, he pointed the firearm directly at the victim teller and customers inside the bank. Before leaving the bank, Fine also claimed to have a pipe bomb.
Through investigative efforts as well an anonymous tip to law enforcement, officers located and arrested Fine on March 8, 2018. Details surrounding the arrest of Fine can also be found in the affidavit on file with U.S. District Court.
This case was the result of an investigation by the FBI Safe Streets Task Force, which consists of FBI Special Agents, Knox County Sheriff’s Deputies, and Knoxville Police Department Officers. Assistant U.S. Attorney Kelly A. Norris 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.
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Illegal Alien Sentenced for Unlawful Reentry and Possession of a FirearmRead the Press Release
KNOXVILLE, Tenn. - On March 7, 2018, Ludwin Leonel Monterroso-Lemus, a/k/a Ludwid Lemus, 31, a native of Guatemala most recently residing in Lenoir City, Tennessee, was sentenced by the Honorable Pamela Reeves, U.S. District Judge, to serve 24 months in prison.
Monterroso-Lemus pleaded guilty in October 2017 to a three-count indictment charging him with illegally reentering the United States after being deported and illegally possessing a firearm and ammunition.
According to documents on file with the U.S. District Court, Monterroso-Lemus, a native of Guatamala, was deported from the United States near Hidalgo, Texas, in May 2010, by the U.S. Department of Homeland Security. He reentered the United States without the consent of Homeland Security and was arrested in Lenoir City, Tennessee in June 2017, after officers responded to a shots fired report. At the time of his arrest, he was in possession of a firearm and ammunition. Monterroso-Lemus admitted to discharging the firearm after a dispute with three males.
“This case emphasizes the commitment of the U.S. Attorney’s Office to enforcing immigration laws and reducing violent crime, two top priorities of the Department of Justice and Attorney General Jeff Sessions,” said U.S. Attorney J. Douglas Overbey.
Agencies involved in the investigation of this case include the Lenoir City Police Department and U.S. Department of Homeland Security Investigations. Assistant U.S. Attorney Bart Slabbekorn represented the United States during 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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Armed Career Criminal Sentenced to 180 MonthsRead the Press Release
CHATTANOOGA, Tenn. – On March 7, 2018, Chris Rayvon Starks, 31, of Shelbyville, Tennessee, was sentenced to serve 180 months in prison by the Honorable Curtis L. Collier, Senior U.S. District Judge. Upon his release from prison, Starks will be under the supervision of the U.S. Probation Office for five years.
Starks previously pleaded guilty to unlawfully possessing a firearm and ammunition in violation of the Gun Control Act. His sentence was enhanced based on his three prior convictions for aggravated robbery. He was sentenced under the Armed Career Criminal Act (“ACCA”).
In August 2016, law enforcement executed a search warrant at the residence of Starks in Shelbyville, Tennessee, during which they seized a loaded .32 caliber semi-automatic pistol. He was present during the execution of the search warrant and admitted the firearm was his. Further investigation determined that the firearm was actually stolen. Starks currently has pending aggravated robbery charges in Bedford County, Tennessee.
“The U.S. Attorney’s Office will continue to protect the safety of our citizens and neighborhoods by prosecuting convicted felons who illegally possess or attempt to gain access to firearms,” said U.S. Attorney J. Douglas Overbey. “The investigators in this case quickly and thoroughly investigated the information provided to them regarding this defendant, consequently disrupting any plan of violence that he may have intended to pursue,” added U.S. Attorney Overbey.
The indictment and subsequent prosecution of Starks was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Michael D. Porter 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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Dean Alan Treadway Pleads Guilty to Child Pornography ChargesRead the Press Release
KNOXVILLE, Tenn. – On February 28, 2018, Dean Alan Treadway, 69, of Knoxville, Tennessee, pleaded guilty before the Honorable Leon Jordan, Senior U.S. District Judge, to possession of child pornography.
Sentencing is set for 1:30 p.m., on July 23, 2018, in U.S District Court in Knoxville. Treadway faces a minimum of 10 years and up to 20 years in prison, supervision by U.S. Probation for five years up to life, forfeiture of the property used to commit the offense and may be ordered to pay restitution to the victims.
According to documents on file with U.S. District Court, as a result of an investigation by the Knoxville Police Department Internet Crimes Against Children Task Force (ICAC), a federal search warrant was executed at Treadway’s residence. This led to the discovery of multiple computers and electronic devices, which were later determined to contain images and videos of child pornography.
This investigation was conducted by the Knoxville Police Department ICAC. Assistant U.S. Attorney Bart Slabbekorn represented the United States in court proceedings.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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James Fitzgerald “Boogie” Simonton Convicted of Crack Cocaine and Firearms OffensesRead the Press Release
GREENEVILLE, Tenn. - On March 2, 2018, following a three-day trial before the Honorable J. Ronnie Greer, U.S. District Judge, a jury convicted James Fitzgerald Simonton, a/k/a Boogie, 50, of Kingsport, Tennessee, of 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.
Sentencing is set for1:30 p.m., on June 11, 2018, in U.S. District Court in Greeneville. Simonton faces a minimum of 15 years, up to a maximum life sentence in prison. There is no parole in the federal system.
Evidence presented at trial revealed that an investigation began following the appearance of two young males at Indian Path Hospital in May 2016 with gunshot wounds. One of the victims was Simonton’s son. Detectives developed Simonton as a suspect in the shooting of these two individuals. When officers went to his residence, they found a Glock pistol with extended magazine, which the ATF traced 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 co-defendant during the purchase of the firearm. Additional surveillance video showed that Simonton was present when his then girlfriend purchased another firearm. As the investigation progressed, two co-defendants, one of whom was another son of Simonton, were arrested in possession of crack cocaine. This led to information about Simonton’s involvement in trafficking 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 the testimony of the witness. 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 the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney J. Gregory Bowman represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
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United States Attorney J. Douglas Overbey Supports the Priorities and Initiatives of the Department of Justice in the Fight Against Opioid Abuse and Addiction Resulting in Multiple Overdose DeathsRead the Press Release
KNOXVILLE, Tenn. – Attorney General Jeff Sessions announced today the creation of a new effort, the Department of Justice Prescription Interdiction & Litigation (PIL) Task Force, to fight the prescription opioid crisis. The PIL Task Force will aggressively deploy and coordinate all available criminal and civil law enforcement tools to reverse the tide of opioid overdoses in the United States, with a particular focus on opioid manufacturers and distributors.
The PIL Task Force will include senior officials from the offices of the Attorney General, the Deputy Attorney General, and the Associate Attorney General, as well as senior officials from the Executive Office for U.S. Attorneys, the Civil Division, the Criminal Division, and the Drug Enforcement Administration. The Task Force will coordinate the Department’s many efforts and tools to combat the opioid epidemic.
“Over the past year, the Department has vigorously fought the prescription opioid crisis, and we are determined to continue making progress. Today, we are opening a new front in the war on the opioid crisis by bringing all of our anti-opioid efforts under one banner,” said Attorney General Sessions. “We have no time to waste. Every day, 180 Americans die from drug overdoses. This epidemic actually lowered American life expectancy in 2015 and 2016 for the first time in decades, with drug overdose now the leading cause of death for Americans under age 50. These are not acceptable trends and this new task force will make us more effective in reversing them and saving Americans from the scourge of opioid addiction.”
“The nation is currently facing the deadliest drug crisis in American history. Unfortunately, east Tennessee is not immune to this problem. In fact, statistics show that Tennessee is a ‘hot spot’ for drug abuse and overdose related deaths in the country,” said U.S. Attorney J. Douglas Overbey. “In addition to working with our other task forces comprised of our local, state and federal law enforcement partners, the U.S. Attorney’s office will work with the PIL Task Force to use all criminal and civil remedies available under federal law to combat this growing crisis. This includes holding drug manufacturers, distributors such as pharmacies, pain management clinics, drug testing facilities, and individual physicians accountable for their unlawful actions,” added U.S. Attorney Overbey.
The new PIL Task Force will build on a number of other new initiatives begun by Attorney General Sessions over the past year that will help end the drug crisis. The Opioid Fraud and Abuse Detection Unit, a new data analytics program to help find evidence of overprescribing and opioid-related health care fraud, was created in August 2017. The Attorney General assigned 12 experienced Assistant U.S. Attorneys to opioid “hot-spots” to focus solely on investigating and prosecuting opioid-related health care fraud.
The U.S. Attorney’s Office for the Eastern District of Tennessee was one of 12, out of 94 districts across the country, chosen to participate in this program. The district received funding for an Assistant U.S Attorney, for a three-year term, to focus solely on investigating and prosecuting healthcare fraud related to prescription opioids, including pill mill schemes and pharmacies that unlawfully divert or dispense prescription opioids for illegitimate purposes. The 12 districts selected represented areas with a significant prescription opioid problem, where the Department can effectively investigate and prosecute the medical providers that are contributing to this epidemic by unlawfully diverting or dispensing opioids outside the scope of professional practice and not for a legitimate medical purpose.
Assistant U.S. Attorney David P. Lewen, Jr., was selected to fill this position for the Eastern District of Tennessee. Working with the FBI, DEA and HHS, as well as our state and local law enforcement partners, Assistant U.S. Attorney Lewen will lead the district in the investigation and prosecution of opioid-related healthcare fraud cases involving doctors, pharmacies and medical providers who are furthering this epidemic in east Tennessee.
Assistant U.S. Attorney Lewen has served as a federal prosecutor in east Tennessee for nearly 10 years. Prior to that time, he served on active duty for five years in the U.S. Army JAG Corps, serving in Korea, Hawaii, and Fort Bragg, North Carolina. Assistant U.S. Attorney Lewen has experience in prosecuting a wide range of federal crimes, including large-scale drug trafficking and money laundering organizations, violent crimes, public corruption, and complex white-collar and corporate fraud crimes. Two of the higher profile defendants Lewen has prosecuted in U.S. District Court include former Knox County Criminal Court Judge Richard Baumgartner and bank extortionist Michael Benanti.
In November 2017, Attorney General Sessions ordered all U.S. Attorney’s Offices to designate an opioid coordinator to be responsible for facilitating intake of cases involving prescription opioids, heroin, and fentanyl; convening a task force of federal, state, local, and tribal law enforcement to identify opioid cases for federal prosecution, facilitate interdiction efforts, and tailor their district’s response to the needs of the community it serves; providing legal advice and training to Assistant U.S. Attorneys regarding the prosecution of opioid offenses; maintaining statistics on the opioid prosecutions in the district; and developing and continually evaluating the effectiveness of the office’s strategy to combat the opioid epidemic. Assistant U.S. Attorney Tracy Stone was chosen to fill this position for the Eastern District of Tennessee.
Prior to joining the U.S. Attorney’s Office in 2006, Assistant U.S. Attorney Stone prosecuted state felony cases as an Assistant District Attorney in Tennessee’s Fourth Judicial District. For the first few years with the office, he was assigned to the Violent Crime Unit, investigating and prosecuting violent offenses such as carjackings, interstate kidnappings, bank robberies, Hobbs Act robberies, and firearms offenses.
As a veteran prosecutor currently assigned to the Organized Crime and Drug Enforcement Task Force, Assistant U.S. Attorney Stone investigates and prosecutes drug trafficking organizations and other criminal enterprises operating within the Eastern District of Tennessee and elsewhere. The bulk of his caseload is devoted to combatting pill mills and the opioid scourge ravaging people, families, and communities within the Eastern District of Tennessee.
In conjunction with the announcement of the PIL Task Force, the Department also announced today that it would be filing a Statement of Interest in a multi-district action regarding hundreds of lawsuits against opioid manufacturers and distributors.
The plaintiffs include numerous cities, municipalities, and medical institutions that have borne the costs of the prescription opioid crisis. The plaintiffs seek to recover the costs associated with providing treatment and public safety measures relating to the opioid epidemic from those who allegedly used false, deceptive, or unfair marketing practices for prescription opioid drugs.
The Department will primarily argue that the federal government—through various federal health programs and law enforcement efforts—has borne substantial costs from the opioid epidemic and seeks reimbursement.
Click on the highlighted links to see the entire national release for the PIL Task Force announcement and here for the release on the Statement of Interest filing release.
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U.S. Attorney’s Office for Eastern District of Tennessee Supports Justice Department Initiative to Protect Elders from Fraud and AbuseRead the Press Release
KNOXVILLE, Tenn. – Attorney General Jeff Sessions and law enforcement partners announced today the largest coordinated sweep of elder fraud cases in history. The cases involve more than 250 defendants from around the globe who victimized more than a million Americans, most of whom were elderly. The cases include criminal, civil, and forfeiture actions across more than 50 federal districts. Of the defendants, 200 were charged criminally. In each case, offenders engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused losses of more than half a billion dollars. The Department coordinated its announcement with the FTC and state Attorneys General, who independently filed numerous cases targeting elder frauds within the sweep period.
“The Justice Department and its partners are taking unprecedented, coordinated action to protect elderly Americans from financial threats, both foreign and domestic,” said Attorney General Sessions. “Today’s actions send a clear message: we will hold perpetrators of elder fraud schemes accountable wherever they are. When criminals steal the hard-earned life savings of older Americans, we will respond with all the tools at the Department’s disposal – criminal prosecutions to punish offenders, civil injunctions to shut the schemes down, and asset forfeiture to take back ill-gotten gains. Today is only the beginning. I have directed Department prosecutors to coordinate with both domestic law enforcement partners and foreign counterparts to stop these criminals from exploiting our seniors.”
The actions charged a variety of fraud schemes, ranging from mass mailing, telemarketing and investment frauds to individual incidences of identity theft and theft by guardians. A number of cases involved transnational criminal organizations that defrauded hundreds of thousands of elderly victims, while others involved a single relative or fiduciary who took advantage of an individual victim. The schemes charged in these cases caused losses to more than a million victims.
“Although not directly involved in today’s national sweep, the U.S. Attorney’s Office for the Eastern District of Tennessee fully supports this initiative,” said U.S. Attorney J. Douglas Overbey. “Protecting our seniors has been, and will continue to be, a top priority of our office. Working with our local, state and federal law enforcement partners, we will investigate and build cases for successful prosecution of these individuals who choose to victimize some of our most vulnerable citizens. I encourage everyone to speak out and tell someone if he or she has been a victim of elder abuse or financial fraud. Please do not remain silent,” added U.S. Attorney Overbey.
In the Eastern District of Tennessee, two individuals were recently sentenced for their roles in a conspiracy to commit mail and wire fraud against elderly victims. In July 2017, Christy A. Greider, 40, and Jason A. Greider, 42, both of Huber Heights, Ohio, were sentenced in U.S. District Court in Knoxville to serve 33 and 27 months respectively in federal prison.
Christy Greider worked as the bookkeeper for M-3 Construction, Inc., located in Oak Ridge, Tennessee. She also helped the company’s elderly owners keep track of their personal finances. Christy and Jason Greider made unauthorized purchases totaling more than $350,000 using the company’s and its elderly owners’ personal credit cards. Some of these unauthorized purchases included a boat, pool, furniture, and a trip to Hawaii.
These charges and subsequent guilty plea and sentencing were the results of a cooperative investigation by the Oak Ridge Police Department and FBI. Assistant U.S. Attorney Kelly A. Norris represented the United States in the court proceedings.
In another case in U.S. District Court in Chattanooga, John Allen Morris, Jr., 51, of Knoxville, Tennessee, was sentenced to serve 36 months in federal prison and ordered to pay over $1.2 million in restitution to identified victims of his offenses, for wire fraud, mail fraud, bank fraud, and wrongful use of a government seal.
Morris was employed as an insurance and annuities broker with a legitimate insurance company. His scheme to sell fraudulent annuities to elderly clients began in late 2006 when he established two fictitious companies and convinced elderly clients to cash out legitimate annuities and invest their money with those companies, promising a higher rate of return. He created and provided his clients with imaginary elaborate and personalized financial statements reflecting the supposed status of their accounts. Establishing multiple accounts at various banks, Morris would deposit investment checks from his clients, and later use these funds to pay off initial investors in a Ponzi-like scheme, as well as pay personal bills, buy material items for himself and his family and invest himself in his own ventures. These schemes included a Lamborghini car kit selling enterprise and “Football Tech,” a company created to train high school football players by attempting to attract prominent former NFL players and coaches into contributing to camps for kids based on Morris’s claims of his own football coaching expertise.
A cooperative investigation by the FBI, U.S. Postal Inspection Service, and Tennessee Department of Commerce and Insurance lead to the indictment, guilty plea and subsequent sentencing of Morris. Assistant U.S. Attorney Steve Neff represented the United States in court proceedings.
Although not as recent as the other two referenced cases, Mark Kevin Tudor, 42, of Knoxville, Tennessee was sentenced in 2014 to serve 36 months in federal prison and pay $266,227.80 in restitution for federal wire fraud charges.
An investigation by the Knoxville Police Department and U.S. Postal Inspection Service determined that Tudor abused a position of trust after having been granted a power-of-attorney by his 93-year-old great aunt, who suffered from a visual disability and needed assistance with her financial affairs. Without his great aunt’s permission or authority, Tudor systematically depleted her bank and credit union account and life insurance policy. In total, Tudor stole over $267,000 before the fraud was discovered, which nearly depleted her life savings. According to a written statement read by his great aunt in court, when the she discovered the fraud only $347 remained in her credit union account, which held over $200,000 before the theft. Assistant U.S. Attorney Matthew Morris represented the United States in court proceedings for this case.
Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.
For the full-version of the Department’s release on today’s national sweep click here: https://www.justice.gov/opa/pr/justice-department-coordinates-nationwide-elder-fraud-sweep-more-250-defendants
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United States Attorney J. Douglas Overbey Announces Management and Supervisory Staff ChangesRead the Press Release
KNOXVILLE, Tenn. – J. Douglas Overbey, U.S. Attorney for the Eastern District of Tennessee, today announced changes in some of the management and supervisory personnel for the district.
“The decision to implement the changes outlined below was made with due and thoughtful consideration,” said U.S. Attorney Overbey. “All of these individuals are well qualified for the position for which they have been chosen. Also, as they all currently serve in supervisory positions, the transition to their new roles should be seamless and keep the district moving forward in support of the priorities and initiatives of the Department of Justice,” added Overbey.
Charles E. Atchley, Jr. will now serve as the First Assistant U.S. Attorney for the district. Atchley most recently served as Deputy Chief of the Criminal Division and supervisor of the National Security Unit. He joined the office in 2001 as an Assistant U.S. Attorney (AUSA). Prior to this, Atchley was an Assistant Attorney General in the Fourth Judicial District of Tennessee. His memberships include the Tennessee Bar Association; State Bar of Georgia; Alabama State Bar; Knoxville Bar Association; Hamilton Burnett Inns of Court; Sevier County Bar Association; and serves on the Board of Directors of the East Tennessee Historical Society and Zoo Knoxville. After graduating from the University of Tennessee, he received a law degree from the Cumberland School of Law at Samford University.
Nancy Stallard Harr will now serve as Senior Litigation Counsel (SLC). Harr, a native of Bristol, Virginia, joined the U.S. Attorney’s office as an AUSA in 1995. Since that time, she has served as supervisor of the Greeneville branch office and First AUSA. Upon the retirement of the presidentially appointed U.S. Attorney in 2015, she became the Acting U.S. Attorney. In October 2016, she was appointed by the court as U.S. Attorney for the district and served in that role until November 2017. Prior to joining the office, Harr was a prosecutor with the Second Judicial District Attorney’s office in Blountville. She received her law degree from the University of Tennessee College of Law.
Francis M. (Trey) Hamilton III, has been chosen to serve as a Deputy Chief of the Criminal Division, supervising fraud and white collar crime prosecutions. Hamilton joined the office in 2002 as an AUSA. Since that time, he has served as SLC and the Criminal Division’s Coordinator for Health Care Fraud, Financial Institution Fraud, and Asset Forfeiture matters. Prior to joining the U.S. Attorney’s Office, Hamilton was a law clerk to the Honorable Jerome Turner, U.S. District Judge for the Western District of Tennessee, and worked as an associate attorney for two national law firms. He received his law degree from Washington & Lee University School of Law, where he graduated summa cum laude, was elected to the Order of the Coif, and served as a member of the Washington & Lee Law Review. His undergraduate degree is from Rhodes College, where he graduated magna cum laude and was elected to Phi Beta Kappa. Hamilton is licensed in Tennessee, Georgia, and the District of Columbia.
Caryn L. Hebets has been chosen to serve as a Deputy Chief of the Criminal Division supervising violent crime and drug prosecutions. Hebets, a native of Dearborn, Michigan, joined the office as an AUSA in October 2005. She most recently served as the lead Organized Crime and Drug Enforcement Task Force (OCDETF) Attorney for the district. Prior to joining the U.S Attorney’s office, Hebets was an Assistant Prosecuting Attorney for Berrien County, Michigan, and also worked with the FBI. She received her law degree from Wayne State University after receiving an undergraduate degree from the University of Michigan. She is a member of the Michigan bar.
In addition to announcing the changes above, U.S. Attorney Overbey announced that the following individuals would remain in their current management and supervisory roles in the district:
David Jennings will remain in his current position as the Chief of the Criminal Division. Jennings joined the office as an AUSA in 1994. Prior to becoming Criminal Chief, he was an AUSA in asset forfeiture, violent crime and OCDETF. In 2008, he became supervisor of the violent crime and OCDETF prosecutions, and eventually added general crimes to this list. Prior to joining the U.S. Attorney’s office, he spent four years on active duty in the Army JAG Corps and worked as an Assistant District Attorney in the Knox County District Attorney’s Office. Jennings has a law degree from the University of Tennessee College of Law and an undergraduate degree from the University of Tennessee.
Loretta Harber will remain as Chief of the Civil Division. Harber, a native of Brooklyn, New York and raised in Lexington, Kentucky, began with the office as an AUSA in 1987. She received her undergraduate and law degrees from the University of Tennessee.
Robert C. McConkey, III will continue to serve as Deputy Chief of the Civil Division. McConkey has been an AUSA with the office since 2010. Prior to joining the U.S. Attorney’s office, he worked as an associate in private practice handling commercial and general civil litigation and served as a Deputy Law Director for Knox County, Tennessee. He received his law degree from the Cumberland School of Law at Samford University after receiving an undergraduate degree from East Tennessee State University.
The Greeneville branch office will continue to be supervised by Branch Chief Donald Wayne Taylor. Before joining the office as an AUSA in 2007, Taylor served as the Chief Assistant Commonwealth’s Attorney in Floyd County, Kentucky. He also has experience as an associate in a private law firm. He received a law degree from Widener University School of Law in Wilmington, Delaware, after receiving an undergraduate degree from Penn State University.
Finally, the Chattanooga branch office will continue under the supervision of Branch Chief Steven Neff. Neff joined the office as an AUSA in 2000. Prior to joining the U.S Attorney’s office, he served on active duty for five years in the U.S. Army as a JAG Corps lawyer. In addition to his duties as an AUSA, he also served overseas on detail from the DOJ as the Resident Legal Advisor at the U.S. Embassy in Tbilisi, Republic of Georgia. He has a law degree from Mercer University Law School in Georgia, and an undergraduate degree from Davidson College.
The U.S. Attorney’s office for the Eastern District of Tennessee represents the interests of the United States both criminal and civil, in federal court. The eastern district is the largest federal district in Tennessee, with a population of over 2.6 million, encompassing 41 of the 95 counties, and spanning 420 miles. In addition to the headquarters office in Knoxville, there are branch offices in Chattanooga and Greeneville. U.S. Attorney Overbey, who was sworn in as the presidentially appointed, senate confirmed U.S. Attorney in November 2017, serves as the top-ranking federal law enforcement official in the district.
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Knoxville Resident Sentenced to over Three Years in Prison for Felon in Possession ConvictionRead the Press Release
KNOXVILLE, Tenn. – On February 20, 2018, Steven Eugene Johnson, a.k.a. Yahya Johnson, 36, of Knoxville, Tennessee, was sentenced to serve 37 months in federal prison by the Honorable Pamela Reeves, U.S. District Court Judge. Upon his release from prison, Johnson will be supervised by the U.S. Probation office for three years.
Johnson previously pleaded guilty to violating the Gun Control Act for being a felon in possession of a firearm and the National Firearms Act for possessing an unregistered silencer. It was illegal for Johnson to possess firearms and/or ammunition due to a 2011 felony conviction in Knox County, Tennessee.
The investigation revealed that from March through July 2017, Johnson spoke with friends about buying and selling firearms and also about acquiring and manufacturing homemade silencers for firearms. He advertised online that he was interested in buying, selling, and trading firearms, and he sought to learn how to obtain firearms without completing a background check. Federal investigators executed a search warrant at Johnson’s home in July 2017 and recovered a .22 caliber handgun, a .22 caliber rifle, over 600 rounds of ammunition, a homemade silencer, and materials believed to be intended for use in assembling a destructive device. Johnson admitted that he unlawfully possessed the firearms, ammunition, and silencer.
“To protect the safety of our citizens and neighborhoods, the U.S. Attorney’s Office will continue to prosecute aggressively convicted felons who illegally possess or attempt to gain access to firearms,” said U.S. Attorney J. Douglas Overbey. “We commend the federal investigators in this case for quickly and thoroughly investigating the information provided to them regarding this defendant. His conviction and prison sentence has disrupted any plan of violence that he may have intended to pursue at this time,” added U.S. Attorney Overbey.
“This focused investigation will have a lasting impact on reducing firearms related violence. The sentencing illustrates the continued dedication by ATF and our partners to identify and investigate violent criminals who lessen the quality of life in our neighborhoods. ATF’s mission is to protect the public and fight violent crime, striving to eliminate violent crime and its impact on our nation,” said ATF Special Agent in Charge Jack Webb.
Renae McDermott, FBI Special Agent in Charge, Knoxville Division stated, "Today's sentencing sends a message that the FBI will work with our law enforcement partners to actively investigate and pursue prosecution of individuals who pose a threat to national security and the safety of our citizens."
This case was investigated by the FBI and ATF. Assistant U.S. Attorney Bart Slabbekorn 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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Former CEO and Executive Management of Defense Contractor, Wellco Enterprises, Inc., Pleads Guilty to $8.1 Million "Made in the USA" Marketing Scheme and Government Contract FraudRead the Press Release
GREENEVILLE, Tenn. – On February 15, 2018, the former President and Chief Executive Officer of Wellco Enterprises, Inc. (Wellco) and Tactical Holdings Operations, Inc. (Tactical Holdings), Vincent Lee Ferguson, 66, of Knoxville, Tennessee, pleaded guilty to conspiracy to commit wire fraud. Wellco’s former Senior Vice President of Sales, Matthew Lee Ferguson, 41, of Geneva, Illinois, and former Director of Marketing and Communications, Kerry Joseph Ferguson, 36, of Houston, Texas, also pleaded guilty to conspiracy to commit wire fraud.
Wellco’s former Vice President of Government Contracting, Neil Streeter, 55, of Warren, Massachusetts, and former Operations Manager, Stephanie Lynn (Ferguson) Kaemmerer, 45, of Knoxville, Tennessee, pleaded guilty to smuggling goods into the United States.
Sentencing has been set for Vincent Lee Ferguson, Matthew Lee Ferguson, and Kerry Joseph Ferguson for June 6, 2018, before the Honorable J. Ronnie Greer, U.S. District Judge. Sentencing for Neil Streeter and Stephanie Lynn Kaemmerer is set for June 11, 2018, also before Judge Greer. Conspiracy to commit wire fraud and smuggling goods into the United States both carry a maximum penalty of 20 years in prison and a fine of up to $250,000. Each defendant was released pending sentencing.
According to information on file with the U.S. District Court, Wellco was a leading manufacturer and supplier of military footwear to the U.S. Department of Defense (DoD) and to civilian (commercial) customers for over 70 years. From 2006 through 2012, DoD alone paid in excess of $138 million to Wellco for the supply of combat boots. Wellco pioneered and patented the first practical method for molding and attaching a rubber sole to a shoe upper in a single operation. During the Vietnam War, the U.S. Army adopted Wellco technology for the manufacture of its hot-weather boots for the jungles of Vietnam, a boot that became known as the “Vietnam Boot” or the “jungle boot.” In May, 2007, in a deal involving approximately $22 million, Wellco was acquired by two investment firms, Golden Gate Private Equity, Inc. and Integrity Brands, Inc. Wellco became a wholly owned subsidiary of Golden Gate’s portfolio company, Tactical Holdings.
In March 2006, Vincent Lee Ferguson was made President and CEO of Wellco. At that time, he discussed with Wellco’s Board of Directors, his turnaround plan for the company to increase commercial sales and “aggressively pursue” sales to the U.S. government. From December 2008 through August 2012, he conspired with his executive team to import military-style boots that were made in China into the United States and then deceptively market and sell those boots to DoD (and other federal departments and agencies), government contractors, and the general public as “Made in the USA” and as compliant with the Berry Amendment and the Trade Agreements Act (TAA). The Berry Amendment prohibits DoD from buying clothing that is not grown, reprocessed, reused or produced in the United States. The purpose of the Berry Amendment is to protect the viability of America’s textile and clothing production base. The TAA provides that the government may acquire only “U.S.-made or designated country end products” and requires government contractors to certify that each “end product” meets applicable requirements.
By December 2008, Wellco was manufacturing certain military boot model uppers and insoles in China. In order to conceal this fact, the conspirators required the Chinese manufacturing facility to include the American flag and “USA” on labels of certain boot uppers. After two shipments of these deceptively marked boots were detained and seized by the U.S. Department of Homeland Security’s Customs and Border Protection, the conspirators ordered the Chinese facility to stitch tear-away “Made in China” labels in Wellco boot uppers. After importation, the conspirators instructed Wellco factory workers in Morristown, Tennessee to tear out the “Made in China” tags prior to shipping the boots to government and commercial purchasers.
The defendants marketed and sold these Chinese-made Wellco boots as “Made in the USA.” They also submitted false certifications to DoD and other federal agencies, and to government contractors that these boots complied with the Berry Amendment and TAA and met certain safety standards, including electrical hazard and blood-borne pathogen protections for U.S. troops. For example, on August 15, 2012, the defendants submitted a signed “Certificate of Conformance” to a government contractor, representing that Wellco’s boot model S161 was “100% Berry Compliant” and “fully protective against Electrical Hazard,” even though the model was imported from China and not safety tested. The boots were then supplied to troops stationed at Sheppard Air Force Base in Wichita Falls, Texas. In total, Wellco sold at least $8.1 million of fraudulent boots.
This case was investigated by Homeland Security Investigations, Defense Criminal Investigative Service, Air Force Office of Special Investigations, General Services Administration Office of Inspector General, and Defense Contract Audit Agency. Assistant U.S. Attorneys David L. Gunn and Timothy C. Harker represented the United States.
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Federal Jury Returns Guilty Verdicts for Former Pilot Flying J President, Vice President, and Customer Account RepresentativeRead the Press Release
CHATTANOOGA, Tenn. – On February 15, 2018, following a multi-month trial in U.S. District Court, Chattanooga, before the Honorable Curtis L. Collier, Senior U.S. District Judge, a jury returned guilty verdicts against Mark Hazelwood, 59, of Knoxville, Tennessee; Scott “Scooter” Wombold, 58, of Gallatin, Tennessee; and Heather Jones, 47, of Knoxville, Tennessee.
Hazelwood, former president of Pilot Flying J, was convicted of conspiracy to commit mail fraud and wire fraud as charged in count 1 of the indictment, wire fraud as charged in count 8 of the indictment, and witness tampering as charged in count 14 of the indictment. Wombold, former vice president of Pilot Flying J, was convicted of wire fraud as charged in count 2 of the indictment. Jones, a former customer account representative for Pilot Flying J, was convicted of conspiracy to commit mail fraud and wire fraud as charged in count 1 of the indictment.
Evidence presented at trial proved a scheme to defraud certain Pilot Flying J trucking company customers through false and fraudulent representations and promises of diesel fuel discounts that were intended to induce victim customers to purchase diesel fuel from Pilot Flying J rather than a competitor. The scheme resulted in victim customers being cheated out of their promised diesel fuel discounts. The evidence at trial showed that the scheme’s goals were to increase Pilot’s market share of diesel fuel sales over its competitors, maximize Pilot’s profits, and maximize the scheme-participants’ potential for profit- and commission-based compensation from trucking companies targeted through the scheme to defraud.
Before trial, 14 other former Pilot Flying J executives and employees had already pleaded guilty to conspiracy charges related to the same scheme to defraud. They are awaiting sentencing. In July 2014, Pilot Flying J entered into a Criminal Enforcement Agreement with the United States in which the company agreed that some of its employees in its Direct Sales group engaged in fraudulent conduct in the payment of diesel fuel discounts for certain targeted Pilot customers. Pilot Flying J agreed that the conduct of those employees resulted in $56 million in loss to affected customers. In accordance with that agreement, Pilot Flying J agreed to pay full restitution to all victim customers in addition to paying a $92 million monetary penalty. Additionally, according to the terms of the Criminal Enforcement Agreement, this federal investigation not only resulted in the payment of full restitution to the scheme’s victims, but also created protection for trucking companies going forward through greater transparency in their future fuel pricing arrangements with Pilot Flying J.
Sentencing has been set for June 27, 2018, in U.S. District Court, Chattanooga. Hazelwood, Wombold, and Jones each face a sentence of up to 20 years in prison for their convictions.
Law enforcement agencies participating in this joint investigation included the FBI and IRS- Criminal Investigation. Assistant U.S. Attorneys F.M. (Trey) Hamilton III and David P. Lewen, Jr. represented the United States at trial.
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Federal Jury Returns Guilty Verdict for Convicted Felon in Possession of a FirearmRead the Press Release
CHATTANOOGA, Tenn. – On January 31, 2018, following a trial in U.S. District Court in Chattanooga before the Honorable Travis R. McDonough, U.S. District Judge, a jury convicted Donald Ray Hobgood, 31, of Shelbyville, Tennessee, of three counts of being a felon in possession of a firearm and ammunition.
Evidence presented at trial revealed that, on January 20, 2017, Bedford County Sheriff’s Deputies were dispatched to Cedar Springs Road in Shelbyville, Tennessee. On arrival, they encountered Hobgood, who was brandishing an AK-style semi-automatic rifle. Hobgood evaded arrest on that date, but on February 15, 2017, deputies received information as to his whereabouts and located him. After a short foot pursuit, deputies subdued and arrested Hobgood. They recovered the AK-style rifle nearby, which was fully loaded with a high capacity 30-round magazine, and discovered multiple loose rounds of ammunition in his pocket.
Sentencing is set for June 1, 2018, in U.S. District Court in Chattanooga. Hobgood faces a sentence of up to 10 years in prison for each count of his conviction. If the judge determines that Hobgood qualifies as an armed career criminal, he faces a statutory mandatory minimum sentence of 15 years in prison for each count. There is no parole in the federal system.
Law enforcement agencies participating in this joint investigation included the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Bedford County Sheriff’s Office. Assistant U.S. Attorneys Michael Porter and Kyle Wilson represented the United States.
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 Knoxville Man and Former Washington State Prosecutor Turned Leader of Sovereign Citizen Movement of Wire Fraud and Conspiracy to Commit Money LaunderingRead the Press Release
KNOXVILLE, Tenn. - Following an eight-day trial before the Honorable Thomas A. Varlan, Chief U.S. District Court Judge, a jury found Randall Keith Beane, 50, of Knoxville, Tennessee, and Heather Ann Tucci-Jarraf, 45, of Pierce County, Washington, guilty of conspiracy to commit money laundering. The jury also found Beane guilty of six additional counts of wire and bank fraud.
Sentencing is set for Beane on June 12, 2018, and Tucci-Jarraf on June 26, 2018 in U.S. District Court. Tucci-Jarraf faces a sentence of up to 20 years. Beane faces up to 30 years on the charges. There is no parole in the federal system.
Evidence presented at trial showed that Tucci-Jarraf acted as an unlicensed attorney for Beane in a scheme to defraud United Services Automobile Association (USAA) Bank, of more than 31 million dollars. In court filings, Tucci-Jarraf and Beane claim the government was foreclosed upon and has no jurisdiction over them. The defendants asserted at trial that the United States hides individuals’ secret accounts in the Federal Reserve Bank, a common ideology among sovereign citizen groups. Tucci-Jarraf was a former prosecutor in Pierce County, Washington.
"When wrongdoers attempt to stand behind an anti-government movement to hide or justify fraudulent criminal activity, they will fail. This jury sent the message that the American judicial system will not shield them, and these two defendants now know they will be punished, whether or not they acknowledge the authority of the Court to do so," said U.S. Attorney J. Douglas Overbey.
The United States is also forfeiting a motor home worth over $500,000 that Beane purchased with the proceeds of the bank and wire fraud offenses. The loss to victim USAA bank totaled over $550,000.
Beane was arrested by FBI Special Agents in July 2017 as he attempted to flee in a half-million dollar motor coach purchased with stolen funds. He resisted arrest and fought the agents during the incident. Tucci-Jarraf was arrested in Washington, D.C., after attempting to meet with President Trump at the White House.
“Americans are free to believe as they choose about their government,” said Renae McDermott, special agent in charge of the FBI Knoxville Field Office. “When those beliefs turn into criminal actions, law enforcement must act.”
The FBI’s white collar crime squad and cyber task force conducted the investigation. Assistant U.S. Attorneys Cynthia Davidson and Anne-Marie Svolto represented the United States.
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U.S. Attorney’s Office for the Eastern District of Tennessee Collects $11,041,603.14 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2017Read the Press Release
KNOXVILLE, Tenn. - U.S. Attorney J. Douglas Overbey announced today that the Eastern District of Tennessee collected $11,041,603.14, in criminal and civil actions in Fiscal Year 2017. Of this amount, $9,282,250.34, was collected in criminal actions and $1,759,352.80, 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 $92,344,571.85, in cases pursued jointly with these offices. Of this amount, $8,310.00, was collected in criminal actions and $92,336,261.85, was collected in civil actions.
Overall, the Justice Department collected just over $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2017.
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, “The overall mission of the U.S. Attorney’s office involves not just protecting the public by prosecuting and locking up criminals, but also helping to restore victims to the fullest extent possible. Restitution, fines and assessments ordered by the U.S. District Court, when collected by our office, benefit all victims of crime. Collected restitution is paid directly to the victim(s) of the crime(s) 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 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, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office for the Eastern District of Tennessee, working with partner agencies and divisions, collected $4,512,735.00 in asset forfeiture actions in FY 2017. 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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Former Department of Energy Subcontractor Sentenced for Conspiring to Defraud DOE and IRSRead the Press Release
KNOXVILLE, Tenn.- On January 22, 2018, Joseph Anthony Armes, II, 38, of Petros, Tennessee, was sentenced by the Honorable Thomas W. Phillips, Senior U.S. District Judge, to serve 12 months and one day in prison for conspiring to defraud the U.S. Department of Energy (DOE) and the Internal Revenue Service (IRS). He will be also be supervised by the U.S. Probation Office for a period of three years following his release from prison.
Armes formerly operated Transportation, Operations, and Professional Services (TOPS) and several other businesses in east Tennessee. In April 2011, DOE awarded UCOR the prime contract for the clean-up of the former K-25 Plant, which was being developed as the East Tennessee Technology Park (ETTP) in Oak Ridge, Tennessee. UCOR awarded TOPS a $24 million subcontract for waste transportation services to the ETTP project in June 2011. The plea agreement for Armes, which is on file with U.S. District Court, detailed how he channeled payments to the son of UCOR’s President from TOPS and other businesses operated by Armes through an elaborate system of false invoices and cash payments from June 2011 through July 2013. TOPS had represented to DOE that it did not have an organizational conflict of interest with UCOR.
Armes also conspired with a tax preparer, Roger Beu, and others to submit false tax forms to the IRS to reduce federal taxes that he owed to the IRS for tax years 2007 through 2012. This resulted in a tax loss of over $1.4 million to the IRS. As part of the sentence, Judge Phillips ordered Armes to repay the IRS more than $2.3 million, which includes interest and penalties on the $1.4 million tax loss.
J. Douglas Overbey, U.S. Attorney for the Eastern District of Tennessee stated, “In addition to pursuing tax fraud, the U.S. Attorney’s Office is committed to enforcing federal laws aggressively to ensure compliance and transparency in federal government contracting and subcontracting.”
"Today's sentencing again emphasizes the IRS and U.S. Attorney’s Office will continue their aggressive pursuit of those who use fraudulent methods in an attempt to corrupt our nation's tax system." said Christopher Altemus, Acting Special Agent in Charge of the IRS-Criminal Investigation Nashville Field Office. “Everyone has a responsibility for filing correct and accurate tax returns, and this sentence should send a clear message: schemes to evade the payment of taxes are a violation of the federal tax laws and the consequences of such schemes can and will result in jail time.”
The investigation was conducted by IRS-Criminal Investigation, U.S. Department of Energy’s Office of Inspector General, and Federal Bureau of Investigation. Assistant U.S. Attorney Matthew Morris represented the United States.
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Two Top Leaders in Italy and Five Us Residents Indicted for Racketeering, Health Care Fraud, and Drug Trafficking Conspiracies to Distribute Opioids Resulting in Deaths Involving “Pill Mills” Operating in Tennessee and FloridaRead the Press Release
KNOXVILLE, Tenn. – A 14-count superseding indictment, returned by a federal grand jury on January 4, 2018, was unsealed today by the Honorable Thomas A. Varlan, Chief U.S. District Judge. The superseding indictment charges seven individuals for their roles in a Racketeer Influenced and Corrupt Organization (RICO) and conspiracy to distribute and dispense oxycodone, oxymorphone, and morphine outside the scope of professional practice and not for a legitimate medical purpose and resulting in deaths, maintenance of drug-involved premises, distribution of oxycodone resulting in death, conspiracy to defraud the United States through the solicitation and receipt of illegal healthcare kickbacks, and money laundering.
Individuals charged in the superseding indictment include Luca Sartini, 58, of Rome, Italy, and Miami; Luigi Palma, aka Jimmy Palma, 51, of Rome, Italy, and Miami; Benjamin Rodriguez, 42, of Delray Beach, Florida; Sylvia Hofstetter, 53, of Knoxville, Tennessee; Courtney Newman, 42, of Knoxville; Cynthia Clemons, 45, of Knoxville; and, Holli Womack aka Holli Carmichael, 44, of Knoxville.
The superseding indictment, which is on file with the U.S. District Court, details the charges against each of the individuals referenced above. All are accused of being responsible for the distribution of quantities of oxycodone, oxymorphone, and morphine sufficient to generate clinic revenue of at least $21M.
On January 19, 2018, Italian authorities arrested Sartini and Palma in Rome, Italy-area. The United States is seeking extradition. Rodriguez is set to self-surrender. All other defendants were previously charged in prior indictments.
Announcement of these charges and the superseding indictment were made today by Attorney General Jeff Sessions, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney J. Douglas Overbey of the Eastern District of Tennessee and Special Agent in Charge Renae M. McDermott of the FBI’s Knoxville Division.
“Throughout this country, and certainly in Tennessee and Florida, the illegal and unconscionable mass-distribution of prescription opioids through the operation of illegal pain clinics has taken a heavy toll on our citizens, families and communities,” said Attorney General Sessions. “This sort of profiteering effectively trades human lives for financial riches. The U.S. Department of Justice is determined to stamp out the operation of illegal pain clinics by all legal means, including finding and arresting those responsible wherever they may be in the world.”
“The Eastern District of Tennessee has been at the forefront in the battle against illegal pain clinics and mass-prescribing of opioids for years,” said U.S. Attorney Overbey. “Now, under the leadership of Attorney General Sessions, additional resources have been made available through recent Department of Justice initiatives, including the Opioid Fraud and Abuse Task Force. This latest indictment is a real and tangible result of all of those combined efforts. The citizens of East Tennessee can be assured that we are committed to ridding our district of illegal pill mills.”
Agencies involved in this investigation include the U.S. Attorney’s Office for the Eastern District of Tennessee; Criminal Division’s Organized Crime and Gang Section; FBI High Intensity Drug Trafficking Area (HIDTA), which is comprised of investigators assigned to the task force by the Loudon County Sheriff’s Office, Knoxville Police Department, Blount County Sheriff’s Office, Roane County Sheriff’s Office, Harriman Police Department and Clinton Police Department. Other agencies that provided invaluable assistance include the Rome Attaché of the Justice Department’s Office of International Affairs; FBI’s liaison in Rome; the FBI Miami Health Care Fraud Strike Force; Hollywood, Florida Police Department; U.S. Department of Health and Human Services; Tennessee Department of Health; and DEA’s Knoxville Diversion Group. The Department of Justice extends its gratitude to Interpol and the Italian Financial Police (Guardia di Finanza) for their assistance in locating and apprehending the defendants.
Assistant U.S. Attorneys Tracy L. Stone and Anne-Marie Svolto of the Eastern District of Tennessee, and Trial Attorney Kelly Pearson of the Criminal Division’s Organized Crime and Gang Section represent the United States.
In light of the nationwide opioid epidemic which led to the declaration of a public health emergency by the Acting Secretary of the Department of Health and Human Services on October 26, 2017, this superseding indictment represents just the latest in a series of federal efforts in the Eastern District of Tennessee meant to combat the scourge of prescription opioids.
To date, as a result of this investigation, approximately 30 narcotics traffickers have been charged and convicted federally, and approximately 80 to 90 smaller narcotic distributers have also been charged and convicted. Today’s superseding indictment is among 35 related indictments charging approximately 140 individuals, including medical providers who worked at the pill mills, with various crimes.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
This case was 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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Two Top Leaders in Italy and Five Us Residents Indicted for Racketeering, Health Care Fraud and Drug Trafficking Conspiracies to Distribute Opioids Resulting in Deaths Involving “Pill Mills” Operating in Tennessee and FloridaRead the Press Release
On Jan. 4, a federal grand jury in Knoxville, Tennessee, returned a 14-count superseding indictment unsealed today charging seven individuals for their roles in a Racketeer Influenced and Corrupt Organization (RICO) conspiracy and drug trafficking conspiracy to distribute and dispense oxycodone, oxymorphone and morphine outside the scope of professional practice and not for a legitimate medical purpose and resulting in deaths, maintenance of drug-involved premises, distribution of oxycodone resulting in death, conspiracy to defraud the United States through the solicitation and receipt of illegal healthcare kickbacks and money laundering.
Attorney General Jeff Sessions, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney J. Douglas Overbey of the Eastern District of Tennessee and Special Agent in Charge Renae M. McDermott of the FBI’s Knoxville Division made the announcement.
“Throughout this country, and certainly in Tennessee and Florida, the illegal and unconscionable mass-distribution of prescription opioids through the operation of illegal pain clinics has taken a heavy toll on our citizens, families and communities,” said Attorney General Sessions. “This sort of profiteering effectively trades human lives for financial riches. The U.S. Department of Justice is determined to stamp out the operation of illegal pain clinics by all legal means, including finding and arresting those responsible wherever they may be in the world.”
“The Eastern District of Tennessee has been at the forefront in the battle against illegal pain clinics and mass-prescribing of opioids for years,” said U.S. Attorney Overbey. “Now, under the leadership of Attorney General Sessions, additional resources have been made available through recent Department of Justice initiatives, including the Opioid Fraud and Abuse Task Force. This latest indictment is a real and tangible result of all of those combined efforts. The citizens of East Tennessee can be assured that we are committed to ridding our district of illegal pill mills.”
Luca Sartini, 58, of Rome, Italy, and Miami; Luigi Palma aka Jimmy Palma, 51, of Rome, Italy, and Miami; Benjamin Rodriguez, 42, of Delray Beach, Florida; Sylvia Hofstetter, 53, of Knoxville; Courtney Newman, 42, of Knoxville; Cynthia Clemons, 45, of Knoxville; and Holli Womack aka Holli Carmichael, 44, of Knoxville, are charged in a third superseding indictment filed in the Eastern District of Tennessee.
On Jan. 19, Sartini and Palma were arrested in the Rome, Italy-area by Italian authorities. Extradition is being sought by the United States. Rodriguez is set to self-surrender. All other defendants were previously charged in prior indictments. The case has been assigned to Chief U.S. District Court Judge Thomas A. Varlan in Knoxville.
According to the indictment, Sartini, Palma, Rodriguez, Hofstetter and a co-conspirator charged in another indictment, from about April 2009 to March 2015, ran the Urgent Care & Surgery Center Enterprise (UCSC), which operated opioid based pain management clinics, “pill mills,” in Florida and Tennessee, where powerful narcotics were prescribed and/or dispensed. The defendants are alleged to have hired medical providers with DEA registration numbers, which would allow the providers to prescribe controlled substances. The prescriptions were primarily large doses of highly addictive and potentially deadly controlled substances. As alleged in the indictment, individuals seeking prescriptions would often travel long distances purporting to suffer from severe chronic pain.
The superseding indictment alleges the defendants distributed quantities of oxycodone, oxymorphone and morphine sufficient to generate clinic revenue of at least $21 million. As per the indictment, the clinics did not accept insurance, received gross fees and ordered unnecessary drug screenings defrauding Medicare. Shell companies were set up to launder the proceeds.
As alleged in the indictment, approximately 700 UCSC enterprise patients are now dead and a significant percentage of those deaths, directly or indirectly, were the result of overdosing on narcotics prescribed by the USSC Enterprise. As alleged in the indictment, the narcotics prescribed by the UCSC enterprise contributed to the deaths of another significant percentage of those patients.
The indictment further alleges that many patients arrived in groups, who were sponsored by drug dealers who paid for the pain clinic visits and prescriptions to obtain all or part of the opioids and other narcotics prescribed to the purported pain patients. In return, drug addicted patients would receive a portion of prescribed narcotics for free from the sponsor.
To date, as a result of this investigation, approximately 30 narcotics traffickers have been charged and convicted federally, and approximately 80 to 90 smaller narcotic distributers have also been charged and convicted. Today’s superseding indictment is among 35 related indictments charging approximately 140 individuals, including medical providers who worked at the pill mills, with various crimes.
The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The superseding indictment is the result of an investigation conducted by the the U.S. Attorney’s Office for the Eastern District of Tennessee, Criminal Division’s Organized Crime and Gang Section, , and the FBI High Intensity Drug Trafficking Area (HIDTA) which is comprised of investigators assigned to the task force by the Loudon County Sheriff’s Office, Knoxville Police Department, Blount County Sheriff’s Office, Roane County Sheriff’s Office, Harriman Police Department and Clinton Police Department. Other agencies provided invaluable assistance, including the Rome Attaché of the Justice Department’s Office of International Affairs; the FBI’s liaison in Rome; the FBI Miami Health Care Fraud Strike Force; the Hollywood, Florida Police Department; the U.S. Department of Health and Human Services; the Tennessee Department of Health; and the DEA’s Knoxville Diversion Group. The Department of Justice extends its gratitude to Interpol and the Italian Financial Police (Guardia di Finanza) for their assistance in locating and apprehending the defendants.
Assistant U.S. Attorneys Tracy L. Stone and Anne-Marie Svolto of the Eastern District of Tennessee, and Trial Attorney Kelly Pearson of the Criminal Division’s Organized Crime and Gang Section, are prosecuting the case.
In light of the nationwide opioid epidemic which led to the declaration of a public health emergency by the Acting Secretary of the Department of Health and Human Services on Oct. 26, 2017, this superseding indictment represents just the latest in a series of federal efforts in the Eastern District of Tennessee meant to combat the scourge of prescription opioids.
Supporting the Priorites of the U.S. Department of JusticeRead the Press Release
Since being sworn in as United States Attorney for the Eastern District of Tennessee on November 21, 2017, I have been working diligently to support the Department of Justice (DOJ) priorities outlined by United States Attorney General Jeff Sessions as well as the mission of the U.S. Attorney’s Office for the Eastern District of Tennessee.
Currently, the top five DOJ priorities include: reducing violent crime; establishing a lawful and constitutional immigration system that makes us safer and more secure; combatting the drug/opioid addiction crisis; protecting our national security; and, enforcing the rule of law. To aid in the enforcement of these priorities, Attorney General Sessions has announced several new tools, initiatives, and programs as well as enhancements to existing programs for U.S. Attorney’s offices and federal, state, and local law enforcement.
In May 2017, Attorney General Sessions issued a memo establishing DOJ charging and sentencing policies. This guidance reestablished the longstanding DOJ policy, trusting our federal prosecutors to use their discretion and judgment to apply the law to the facts of the investigation and pursue the most serious, readily provable offense(s) supported by the facts of the case.
Attorney General Sessions has also repeatedly reinforced his commitment to assist law enforcement in performing their duties, celebrating the noble, honorable, essential, and challenging work of law enforcement communities, while always seeking to affirm the critical role of police officers in our society. Supporting our law enforcement partners and the excellent work that they do as well as promoting coordination and cooperation between local, state, and federal law enforcement agencies, will also continue to be a top priority in East Tennessee.
The nation is currently facing the deadliest drug crisis in American history. Unfortunately, East Tennessee is not immune to this problem. In fact, statistics show that Tennessee is one of the “hot spots” for drug abuse and overdose related deaths in the country. Combatting this drug/opioid crisis is a top priority for President Trump and his administration as well as Attorney General Sessions. Accordingly, the U.S. Attorney’s office will continue to take every action available to address this crisis, including working with our federal, state, and local partners, to target and prosecute those who are unlawfully furthering this epidemic.
In August 2017, the Attorney General announced the formation of the Opioid Fraud and Abuse Detection Unit, a new Department of Justice program to utilize data to help combat the devastating opioid crisis. The Eastern District of Tennessee received one of 12 experienced Assistant U.S. Attorney positions allocated across the country to focus solely on investigating and prosecuting health care fraud related to prescription opioids, including pill mill schemes and pharmacies that unlawfully divert or dispense prescription opioids.
In October 2017, Attorney General Sessions announced the expansion of Project Safe Neighborhoods (PSN), which encourages U.S. Attorneys’ offices to work with the communities they serve to develop customized crime reduction strategies. Originally launched in 2001, one study showed that, in its first seven years, PSN reduced violent crime overall by 4.1 percent with case studies showing reductions in certain areas of up to 42 percent. The PSN program has always been strong in the Eastern District of Tennessee and will continue to thrive during a reinvigoration of the district’s crime reduction strategy incorporating lessons learned since its inception. I am fully onboard with making our neighbors, schools, and communities free from illegal drugs and crime.
Also in October 2017, the Attorney General announced Organized Crime and Drug Enforcement Task Force’s (OCDETF) National Gang Strategic Initiative promoting creative enforcement strategies and best practices to assist in developing investigations of violent criminal groups and gangs into enterprise-level OCDETF prosecutions. MS-13, identified as one of the most violent and ruthless gangs on the streets today, was designated as a priority, allowing federal law enforcement to utilize an expanded toolkit in its efforts to dismantle the organization.
While the current administration has made great progress toward establishing a lawful and constitutional immigration system to make us safer and more secure, the threats we face from terrorists are diverse and evolving. A report released in January 2018 by DOJ and the Department of Homeland Security (DHS) revealed that between September 11, 2001, and December 31, 2016, three of every four individuals convicted of international terrorism-related charges in U.S. federal courts were foreign-born. During this same period, U.S. Immigration and Customs Enforcement removed 1,716 aliens with national security concerns. Further, in 2017 alone, DHS encountered 2,554 individuals on the terrorist watch list (also known as the FBI’s Terrorist Screening Database) traveling to the United States.
There is no higher DOJ priority than protecting the nation against acts of terrorism and other threats to national security. The hard work of DOJ professionals and our partners at home and abroad have enabled the disruption of numerous terrorist plots and the successful prosecution of those involved. We will use every available tool to continue these efforts.
In the Eastern District of Tennessee, the Anti-Terrorism Advisory Council (ATAC), established after the terrorist attacks in September 2001, serves as a conduit for information sharing about suspected terrorists among federal, state and local law enforcement entities. The ATAC operates as an umbrella organization of local, state, and federal agencies that coordinates activities, develops policy, implements strategic plans, and provides training to combat terrorism. It also coordinates with the other ATACs around the nation and works closely with the Federal Bureau of Investigation’s Joint Terrorism Task Force (JTTF). Member agencies include those from law enforcement, public health, emergency planning and response, the military, and the intelligence community.
Finally, Attorney General Sessions has pledged that it is his duty to ensure that the laws of the United States are enforced and that the Constitutional order upheld. Enforcing the law saves lives, protects communities and taxpayers, and prevents human suffering. Failure to enforce the laws in the past has put our nation at risk of crime, violence, and even terrorism. During my watch as United States Attorney, the experienced prosecutors and other professionals in our office will continue to enforce the law and defend the interests of the United States, ensuring the fair and impartial administration of justice for the people of East Tennessee.
J. Douglas Overbey
United States Attorney
Eastern District of Tennessee
Sevierville Resident Sentenced to Serve 222 Months in Prison for Child Pornography Offenses and Attempted Enticement of a Minor for Illegal SexRead the Press Release
KNOXVILLE, Tenn.- On January 18, 2018, Michael Anthony Carpenter, 29, of Sevierville, Tennessee, was sentenced by the Honorable Thomas A. Varlan, Chief U.S. District Judge, to serve 222 months in prison for advertising and distributing child pornography and attempted enticement of a minor to engage in illegal sexual activity. Following his release from prison, the U.S. Probation Office will supervise him for the rest of his life. He will also be required to register with the sex offender registry in any state in which he resides, works, or attends school.
Carpenter pleaded guilty in August 2017 to federal charges stemming from two separate investigations. An undercover law enforcement task force in Australia first identified Carpenter in the spring of 2016, after he posted hyperlinks to his online storage account in a chat room devoted to exchanging child pornography so others could download his cache of child pornography. Australian law enforcement officers provided information concerning his involvement to the U.S. Department of Homeland Security, Homeland Security Investigations (HSI). During a separate undercover investigation in May 2017, Carpenter contacted undercover law enforcement officers and expressed interest in paying to have sex with a child. He was arrested in Sevier County, Tennessee, when he arrived at a pre-arranged location to have sex with who he believed was a nine-year-old girl.
“Technological advances, particularly the Internet and mobile devices, have facilitated the sex trafficking of children by providing a convenient worldwide marketing channel,” said J. Douglas Overbey, U.S. Attorney for the Eastern District of Tennessee. “Individuals can now use online classifieds and social media to advertise, schedule, and purchase sexual encounters with minors. This individual committed some of the most serious criminal offenses perpetrated against the most vulnerable members of our society. This sentence sends a clear message that these crimes against children will continue to be vigorously investigated and prosecuted by the U.S. Attorney’s Office.”
The local investigation was conducted by HSI and Knoxville Police Department, with assistance from the Sevierville Police Department and Sevier County Sheriff’s Office. Assistant U.S. Attorney Matthew Morris represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Estill Springs Resident Sentenced to Serve 51 Months in Prison for Possession of Child PornographyRead the Press Release
CHATTANOOGA, Tenn. – On January 3, 2018, Mark Carlton Bryant, 66, of Estill Springs, Tennessee, was sentenced by the Honorable Judge Curtis L. Collier, Senior U.S. District Court Judge, to serve 51 months in federal prison for possession of child pornography. Additionally, Bryant was ordered to pay a $25,000 fine, $5000 in restitution, and forfeit electronic equipment used in the commission of his crimes. Upon his release from prison, U.S. Probation will supervise him for five years.
Bryant, a retired Lieutenant Colonel from the U.S. Air Force, previously pleaded guilty to a one-count information charging him with possession of child pornography.
U.S. Attorney J. Douglas Overbey said, “This case is a good example of local and federal agencies working together to protect children, our most vulnerable victims. The U.S. Attorney’s office will continue to prosecute aggressively individuals who choose to possess and distribute child pornography.”
"There is no greater call in law enforcement than protecting the young and innocent," said Special Agent in Charge Renae M. McDermott, FBI, Knoxville Division. "This case is an example of our partnerships with prosecutors and other law enforcement agencies doing just that. I want to thank all agencies involved for their commitment to rooting out those who seek to exploit children."
Agencies involved in this investigation included the Winchester Police Department and the FBI. Assistant U.S. Attorney James. T. Brooks represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Federal Jury Convicts Eloy “Chino” Alonzo of Methamphetamine Distribution and Firearms ViolationsRead the Press Release
KNOXVILLE, Tenn. - Following a three-day trial before the Honorable Thomas A. Varlan, Chief U.S. District Court Judge, a jury found Eloy “Chino” Alonzo, 31, of Sweetwater, Tennessee, guilty of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine and possession of a firearm in furtherance of his drug trafficking. Sentencing is set for 2:00 pm, April 26, 2018, in U.S. District Court.
Evidence presented at trial showed that Eloy Alonzo, an illegal alien and citizen of Mexico, was a large-scale drug distributor that brought and sold pounds of methamphetamine into east Tennessee. A large quantity of methamphetamine and multiple assault rifles were found at Alonzo’s residence during the execution of a search warrant in Monroe County, Tennessee, in September 2016.
Law enforcement agencies participating in this joint investigation included the Ninth Judicial Drug Task Force, Drug Enforcement Administration, Tennessee Bureau of Investigation, Monroe County Sheriff’s Department, Sweetwater City Police Department, U.S. Homeland Security Investigations, Blount County Sherriff’s Department and Fifth Judicial Drug Task Force. Assistant U.S. Attorneys Cynthia Davidson and LaToyia Carpenter represented the United States.
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Michael J.W. Potter Convicted of Conspiring to Distribute MethamphetamineRead the Press Release
GREENEVILLE, Tenn. - Following a three-day trial before the Honorable J. Ronnie Greer, U.S. District Judge, a jury convicted Michael J.W. Potter, 36, of Kingsport, Tennessee, of conspiracy to distribute 50 grams or more of methamphetamine.
Sentencing is set for 9:00 a.m., April 2, 2017, in U.S. District Court in Greeneville. Potter faces a minimum sentence of 10 years up to a maximum of life in prison. There is no parole in the federal system.
Evidence presented at trial revealed that an investigation into a large scale methamphetamine distribution ring in northeast Tennessee and southwest Virginia began in 2015. In June 2016, a Tennessee Highway Patrol Officer stopped two members of the organization shortly after they delivered several pounds of crystal methamphetamine to individuals in Kingsport, Tennessee. That stop led to the execution of search warrants by the Second Judicial Drug Task Force working with the Drug Enforcement Administration (DEA), Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Tennessee Bureau of Investigation (TBI), resulting in the seizure of nearly five kilograms of crystal methamphetamine. Information obtained through the traffic stop and search warrants allowed agents to identify numerous members of the organization, which was supplied primarily by co-defendant, Nathan Hogan of Villa Rica, Georgia.
Hogan and others, including Potter, were responsible for transporting hundreds of pounds of crystal methamphetamine, a highly addictive controlled substance, into Sullivan County, Tennessee and the surrounding area for distribution. Of the 25 individuals indicted in this conspiracy, Potter was the only one to proceed to trial. The other 24 defendants pleaded guilty, with the exception of Shawn Dumitras, who died prior to arrest.
Law enforcement agencies participating in this joint investigation were the Second Judicial District Drug Task Force, Sullivan County Sheriff’s Office, Kingsport, Police Department, TBI, ATF and DEA. Assistant U.S. Attorney J. Gregory Bowman 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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Final Individual Sentenced in Illegal Steroid ConspiracyRead the Press Release
GREENEVILLE, Tenn. – On December 6, 2017, Kari Carter, 27, of Johnson City, Tennessee, was sentenced by the Honorable J. Ronnie Greer, to serve four months in prison for her role in a large illegal steroid conspiracy in east Tennessee. Upon her release from prison, she will be supervised by U.S. Probation for three years.
Carter was the final of 22 defendants charged in this scheme to be sentenced. All pleaded guilty and received the following sentences:
Defendant Name, Age, Residence
Prison Sentence
Supervised Release
Probation
Monetary Judgement
Forfeited Property
Joel Pasternak, 28,
Johnson City, Tennessee
108 months
3 years
$2.8 million
Edward Pasternak, 59, Newport, Tennessee
36 months
3 years
$100,000 (jointly with Lori Pasternak)
$68,866 cash and property valued at $80,000
Thomas Hensley Maxwell, 28,
Johnson City, Tennessee
30 months
3 years
$63,000
Daniel Boston, 33,
Versailles, Kentucky
27 months
3 years
$17,064
Heath Kershaw, 37, Fleetwood, North Carolina
21 months
3 years
$50,000
John Allen, 32,
Seminole, Florida
18 months
3 years
$35,000
Lori Pasternak, 52,
Newport, Tennessee
12 months + 1 day
3 years
$100,000 (jointly with Edward Pasternak)
$68,866 cash and property valued at $80,000
Matfey Lisovoy, 29, Knoxville, Tennessee
15 months
3 years
$40,000
Nathan Urrutia, 34,
Madison Heights, Michigan
15 months
3 years
$30,000
$20,840 cash
Christopher Jones, 37, Pawtucket, Rhode Island
37 months
3 years
$121,745
Glen Jenkins, 31,
Knoxville, Tennessee
4 months
3 years
$4300
William Gallant, 34, Sevierville, Tennessee
90 days
3 years
$33,000
Richard Hensley, 34, Memphis, Tennessee
5 years
$61,000
Jared Pasternak, 23,
Newport, Tennessee
5 years
$10,000
$4680 cash
Joshua Pasternak, 32, Sevierville, Tennessee
5 years
$10,000
Michael VanLeeuewen, 36, Memphis, Tennessee
4 years
Abigail Chester, 32, Farmington, New Mexico
4 years
$36,650
Mitchell Free, 32,
Lula, Georgia
4 years
$17,542
Lauren Dean, 27, Jonesborough, Tennessee
2 days
4 years
Pamela Little, 28,
Kingsport, Tennessee
3 years
$8000
Lindsey Smallman, 25, Johnson City, Tennessee
3 years
$8000
This scheme involved importing raw steroid powders shipped in misbranded packaging from China and other countries, which were converted to liquid, pill, and tablet form and marketed via the internet using the Incredible Hulk image and the name Hulkbody. Customers purchased the steroid products by sending money to Western Union, MoneyGram, and Walmart-to-Walmart Money Transfer using false identities. Over a three-year period, the Pasternak drug organization operated five different clandestine steroids labs in the Johnson City area, derived more than $2.8 million in criminal proceeds, engaged in thousands of sales transactions, and involved a total of 22 co-conspirators. Law enforcement officers found what is described as one of the largest clandestine steroids lab in the United States as part of the investigation.
Agencies involved in this investigation included the Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation, U.S. Postal Inspection Service, U.S. Department of Homeland Security Investigations and the Washington County Sheriff’s Office. Assistant U.S. Attorneys Helen C.T. Smith and Frank M. Dale, Jr., represented the United States in court proceedings.
Knoxville Man Arrested for Posting Threats to Kill on Thanksgiving DayRead the Press Release
KNOXVILLE, Tenn. – An individual who threatened in a post on his Facebook page to kill everyone in Knoxville on Thanksgiving Day was arrested earlier today by agents with the Knoxville FBI. Dale Jeffries II, 43, of Knoxville, Tennessee, was taken into custody shortly before 2:00 PM on Wednesday, November 22, 2017, at a business in west Knoxville. Jefferies was charged with transmitting threatening communications in interstate commerce. More detailed information on these charges can be found in the arrest warrant and supporting affidavit on file with the U.S. District Court Clerk. If convicted, he faces up to five years in prison.
Jeffries appeared in U.S. District Court this afternoon and was held pending a detention hearing scheduled for Wednesday, November 29, 2017.
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.
James Douglas Overbey Sworn in as U.S. Attorney for the Eastern District of TennesseeRead the Press Release
KNOXVILLE, Tenn. – On Tuesday, November 21, 2017, James Douglas Overbey was administered the oath of office to become U.S. Attorney for the Eastern District of Tennessee, by the Honorable Thomas A Varlan, Chief United States District Judge. Overbey was nominated by President Donald J. Trump and confirmed by the United States Senate to serve in this position.
“I am deeply appreciative to Senators Alexander and Corker for recommending me to the President and to President Trump for nominating me to the office. I look forward to continuing to serve the people of Tennessee in this position and working with the dedicated people in the U.S. Attorney’s Office,” said U.S. Attorney Overbey.
As U.S. Attorney, Overbey is the top-ranking federal law enforcement official in the Eastern District of Tennessee, which is the largest federal district in Tennessee, with a population of over 2.6 million, encompassing 41 of the 95 counties, and spanning 420 miles. He oversees a staff of attorneys and non-attorney support personnel in the Knoxville headquarters office, as well as two branch offices in Chattanooga and Greeneville.
The U.S. Attorney’s office is responsible for prosecuting federal crimes in the district, including crimes related to terrorism, public corruption, child exploitation, firearms, and narcotics. The office also defends the United States in civil cases and collects debts owed to the United States.
Overbey, a resident of Maryville, Tennessee, received his undergraduate degree from Carson- Newman College, graduated first in his class from the University of Tennessee, College of Law and has practiced law for 38 years. In 1982, he co-founded the law firm of Robertson Overbey where he was the senior partner.
Prior to his appointment as U.S. Attorney, Overbey was serving his third term in the Tennessee State Senate representing Blount and Sevier counties. From 2000 to 2008, he represented a portion of Blount County in the House of Representatives. He served on the Finance and Health Committees in both the House and Senate, was Chairman of the Senate Ethics Committee and the General Assembly’s Arts Caucus, and Vice-Chairman of the Senate Finance and Judiciary Committees.
His many awards include the 2009 Law & Liberty Award from the Knoxville Bar Association for his contribution to the advancement and protection of law through liberty, the 2011 Community Leadership Award from Leadership Blount for more than three decades of community service, and the 2011 Bud Cramer Award from the National Children’s Alliance for his steadfast advocacy of children’s issues. In 2013, he was selected as a member of the CSG Toll Fellows Class and received the Distinguished Alumnus Award from his alma mater, Carson-Newman University.
Overbey has also been a frequent lecturer for continuing legal education programs, including 16 years presenting the Knoxville Bar Association’s annual Legislative Update, served as an adjunct faculty member at the University of Tennessee College of Law, and had two articles published in the Anglican Digest.
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Attorney General Sessions Announces $98 Million to Hire Community Policing OfficersRead the Press Release
KNOXVILLE, Tenn. – On November 20, 2017, Attorney General Jeff Sessions announced $98,495,397 in grant funding through the Department of Justice’s Office of Community Oriented Policing Services (COPS Office) COPS Hiring Program (CHP). The Attorney General announced funding awards to 179 law enforcement agencies across the nation, which allows those agencies to hire 802 additional full-time law enforcement officers.
Two of these grants went to east Tennessee agencies. The Blount County Sheriff’s Department received $746,117 to fund six officers and the Hamilton County Sheriff’s Department received $250,000 to fund two officers.
“Both the Blount County and Hamilton County Sheriff’s Departments have a long history of working with the U.S Attorney’s Office to develop cases for successful federal prosecution. We are very pleased that they were chosen as two of 179 agencies across the country to receive these grants, which will allow them to hire additional officers and enhance their efforts to reduce crime in the Eastern District of Tennessee,” said U.S. Attorney Nancy Stallard Harr.
“Cities and states that cooperate with federal law enforcement make all of us safer by helping remove dangerous criminals from our communities,” said Attorney General Jeff Sessions. “Today, the Justice Department announced that 80 percent of this year’s COPS Hiring Program grantees have agreed to cooperate with federal immigration authorities in their detention facilities. I applaud their commitment to the rule of law and to ending violent crime, including violent crime stemming from illegal immigration. I continue to encourage every jurisdiction in America to collaborate with federal law enforcement and help us make this country safer.”
CHP provides grant funding directly to state, local, and tribal law enforcement agencies to support hiring additional law enforcement officers for three years to address specific crime problems through community policing strategies.
In September, the Justice Department announced additional priority consideration criteria for FY2017 COPS Office grants. Applicants were notified that their application would receive additional points in the application scoring process by certifying their willingness to cooperate with federal immigration authorities within their detention facilities. Cooperation may include providing access to detention facilities for an interview of aliens in the jurisdiction’s custody and providing advance notice of an alien’s release from custody upon request. Eighty percent of the awarded agencies received additional points based on their certifications of willingness to cooperate with federal immigration authorities.
The COPS Office awards grants to hire community policing officers, develop and test innovative policing strategies, and provide training and technical assistance to community members, local government leaders, and all levels of law enforcement. Since 1994, the COPS Office has invested more than $14 billion to help advance community policing.
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Attorney General Jeff Sessions Hosts the 65th Annual Attorney General Awards Honoring Department Employees and Others for Their ServiceRead the Press Release
WASHINGTON – Attorney General Jeff Sessions recognized 202 department employees for their distinguished public service today at the 65nd Annual Attorney General’s Awards Ceremony. Nineteen other individuals outside of the department were also honored for their work. This annual ceremony recognizes individuals for their outstanding service and dedication to carrying out the missions of the Department of Justice. The department will also present one posthumous award to Deputy Commander Patrick T. Carothers for exceptional heroism in the line of duty during a fugitive apprehension in Allenhurst, Georgia on Nov. 18, 2016, in which Deputy Commander Carothers was mortally wounded.
“Every single day, the 115,000 men and women of the Department of Justice work to protect our national security against terrorist threats, defend the civil rights of all Americans, reduce violent crime in our communities, stop deadly drug dealers and their organizations, and strengthen the rule of law,” said Attorney General Sessions. “This work benefits every American, and each Department of Justice employee plays a role that helps us accomplish our objectives. Today, we take a moment to recognize those who have distinguished themselves by exemplary service to the Department. Each one of these men and women—through their dedication and commitment—has made a difference. Meeting with them and their families today, I am more confident than ever that the Department—and the safety of the American people—are in good hands.”
This year’s program honors individuals across the department and our federal, state, local, and tribal partners for their self-less efforts, protecting our national security and our civil rights, addressing rising violent crime in our communities, going after gangs and those trafficking in dangerous narcotics and human beings. The awards also honor the work of civil and environmental litigation, which enforces the rule of law and upholds our Constitution. They also recognize employees whose ideas and efforts save taxpayer dollars and help our government operate more effectively and efficiently, among other contributions to public safety and good governance.
The Attorney General’s Award for Excellence in Law Enforcement was presented to a group of law enforcement professionals from the Eastern District of Tennessee for their extraordinary teamwork in the successful investigation and prosecution of a violent drug dealing and human trafficking organization. Today’s award recipients included:
Allen P. Pack, Jr., Special Agent, Federal Bureau of Investigation
Gregory J. Smith, Special Agent, Federal Bureau of Investigation
Steven T. Fogarty, Special Agent, Federal Bureau of Investigation
Ted S. Francisco, Special Agent, Homeland Security Investigations
Michelle L. Evans, Special Agent, Homeland Security Investigations
Carl Richard Walker, Jr., Special Agent, Tennessee Bureau of Investigation
Sollie W. Rabun III, Trooper, Tennessee Highway Patrol
Patrick L. White, Captain, Elizabethton Police Department
The trial team associated with these successful prosecutions included Assistant U.S. Attorney’s Donald Wayne Taylor, Jr., Helen C.T. Smith, and J. Christian Lampe assisted by Paralegal Specialist Cynthia St. John.
From 2009 through 2014, approximately 55 individuals associated with this organization were indicted and convicted of federal offenses associated with drug trafficking, firearms, immigration, and human trafficking. The organization and its associates were officially linked to drug suppliers from Tennessee, North Carolina, California, Oklahoma, Arizona, and ultimately a major drug organization in Mexico. The human trafficking portion of the operation affected such states as Tennessee, Kentucky, Alabama, Ohio and Georgia. Removal of the drug operation and its numerous associates had a profound impact on the area. Arrests and convictions associated with the human trafficking portion of the investigation resulted in the rescue of numerous victims and likely saved countless lives.
U.S. Attorney Nancy Stallard Harr praised today’s award recipients, as well as the prosecution team, for their success in eliminating this combined violent drug and human trafficking organization. “The U.S. Attorney’s Office is extremely proud of these dedicated, hard-working individuals. Their endeavor to eradicate a serious threat to the American public unquestionably improved the safety and well-being of law-abiding citizens in the region. Their success is due to the outstanding communication, commitment and perseverance by the multiple federal, state and local agencies and the prosecution team in our office,” said U.S. Attorney Harr.
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