Eastern District of Tennessee
Press releases recorded for this federal judicial district.
Johnson City Resident Sentenced to Serve over Eight Years in Federal Prison for Methamphetamine and Firearms OffensesRead the Press Release
GREENEVILLE, Tenn. – On April 6, 2017, Joey Edward Holmes, 39, of Johnson City, Tennessee, was sentenced by the Honorable R. Leon Jordan, U.S. District Judge, to serve 100 months in federal prison. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for five years. Holmes was also ordered pay $200 special assessments.
Holmes pleaded guilty in December 2016 to conspiring to manufacture methamphetamine and being a felon in possession of a firearm. According to information on file with the U.S. District Court, , who was part of a larger conspiracy, produced methamphetamine using pseudoephedrine supplied to him by others. When he was arrested on the methamphetamine charges, officers found a 9 mm semi-automatic pistol, ammunition, crystal methamphetamine, digital scales, hundreds of small plastic zipper bags and other items consistent with a drug lab in his home. has been in federal custody since his April 2016 arrest.
Agencies involved in this investigation included the Washington County Sheriff’s Office and Drug Enforcement Administration. Assistant U.S. Attorneys J. Greg Bowman and Helen Smith, 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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Knoxville Man Sentenced to Ten Years in Prison for Sex Trafficking Conspiracy and Related Drug OffensesRead the Press Release
U.S. District Court Judge R. Leon Jordan of the Eastern District of Tennessee sentenced Marcus D. Washington today to 10 years in prison followed by 3 years of supervised release. Washington pleaded guilty on November 21, 2016, to one count of conspiracy to commit commercial sex trafficking by force, fraud, or coercion in violation of 18 U.S.C. § 1594(c), conspiracy to possess with intent to distribute a Schedule II controlled substance in violation of 21 U.S.C §§ 846, 841(a)(1) and (b)(1)(C), and possession with intent to distribute a Schedule II controlled substance in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(C).
According to court documents, on September 25, 2013, Knox County Sherriff Deputies arrested Washington after he arranged for a woman to meet an undercover law enforcement officer in a hotel for commercial sex. Police seized Oxycodone from Washington at the time of his arrest. A subsequent investigation revealed that Washington recruited the woman to engage in prostitution, knowing that she was addicted to Oxycodone and that she feared withdrawal sickness. In the weeks prior to his arrest, Washington threatened to – and did in fact – withhold Oxycodone from the woman as a means to compel to her to prostitute for his profit. Washington kept all of the money from the prostitution. In addition to manipulating her addiction and fear of withdrawal symptoms, Washington assaulted and threatened physical harm against the woman.
“Opiate addiction exists in every corner of this country,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “This defendant used an addicted woman’s fear of opiate withdrawal as his weapon of coercion – all for his own profit.”
“Today’s sentencing demonstrates that the FBI will identify, investigate, and prosecute those who commit human trafficking violations wherein force, fraud and coercion is used for personal profit,” said FBI Knoxville Special Agent in Charge Renae McDermott.
The Court ordered Washington to pay nearly $14,000 in restitution to two victims referenced in the plea agreement.
This case was investigated by the FBI. The case was prosecuted by Trial Attorney William Nolan of the Civil Rights Division’s Human Trafficking Prosecution Unit and Trial Attorneys Rose E. Gibson and Nicholas Durham of the Civil Rights Division.
Former CSX Trans Employee Pleads Guilty to Benefits Fraud Against U.S. Railroad Retirement BoardRead the Press Release
GREENEVILLE, Tenn. – On Mar. 27, 2017, George W. Myers, 59, of Telford, Tenn., pleaded guilty to an information charging him with one count of theft of public money in connection with benefits fraud he perpetrated against the U.S. Railroad Retirement Board (RRB). The fraudulently obtained benefits totaled approximately $362,741, consisting of $327,737 in annuity payments and $35,004 in health benefits.
Sentencing was set for 9:00 a.m., July 10, 2017, in U.S. District Court in Greeneville. Myers faces a maximum sentence of 10 years in prison and a maximum $250,000 fine, and restitution.
According to his plea agreement on file with U.S. District Court, from October 1978 until August 2000, CSX Trans employed Myers as a welder. Myers stopped work, claiming to be disabled, and completed and signed an initial application for disability in December 2000. Between December 2000 and April 2007, he received intermittent disability payments while the application was the subject of litigation. In April 2007, following numerous denials and subsequent appeals, he was finally awarded ongoing disability payments retroactive to July 2004 and Medicare coverage retroactive to January 2007. He continued to receive full annuity payments and Medicare coverage from July 2004 through September 2016.
Including the initial disability application, Myers signed forms on multiple occasions indicating that he understood that failing to report work and earnings promptly was a crime punishable by federal law and could result in criminal prosecution and/or penalty deductions from his annuity payments. Despite this, he submitted disability update reports on which he falsely represented that he had not worked for anyone or for himself and his medical condition kept him from working. In fact, in February 2006, Myers indicated that he: a) was not at all able to dress himself; b) was not at all able to perform outdoor chores; c) did not expect to work during the next 12 months; and d) had not been self-employed in the last 12 months. However, in his plea agreement, Myers admitted to working for various people and companies between August 2004 and October 2016. Some of the work included performing physically demanding contracting, repair, and maintenance work for at least two individuals who compensated him approximately $58,612 for his work.
The Railroad Retirement Board, Office of the Inspector General conducted this investigation. Assistant U.S. Attorney TJ Harker represented the United States.
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Kingsport Residents Sentenced for Federal Fraud CrimesRead the Press Release
GREENEVILLE, Tenn. – On Mar. 22, 2017, Jimmy Allen Hulse, 56, and Randy Gerald Harkleroad, 49, both of Kingsport, Tenn., were sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge to serve time in federal prison for their roles in a mail and wire fraud conspiracy. Hulse received a prison sentence of 22 months while Harkleroad received 12 months. Both were ordered to complete three years on supervised release, pay restitution of $327,612, and pay $100 special assessments.
Hulse and Harkleroad pleaded guilty to an information charging them with conspiring to commit mail fraud and wire fraud. In the plea agreement on file with U.S. District Court, they admitted that over a two-year period, beginning in mid-2013, they submitted 585 false claims to Goodman Manufacturing, a manufacturer of water heaters in Houston, Tex. The false claims generated payments of $310,994 for labor and a loss of $16,618 in parts credit for water heater warranty work that was never performed. Hulse worked for East Coast Metal Distributors, which sold Goodman water heaters and extended warranty plans. Harkleroad was the owner of Point Blank Heating and Air, a heating, ventilation, and air conditioning contractor.
Agencies involved in this investigation included the Federal Bureau of Investigation and Internal Revenue Service, Criminal Investigations. Helen Smith, Assistant U.S. Attorney represented the United States.
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Mooresburg, Tennessee Resident Sentenced to Twenty Years in Federal Prison for Methamphetamine ConspiracyRead the Press Release
GREENEVILLE, Tenn. – On Mar.16, 2017, Steven Dwight Hopkins, aka “Rabbit”, 46, of Mooresburg, Tenn., was sentenced by the Honorable R. Leon Jordan, U.S. District Court Judge, to serve 240 months in federal prison for his role in a conspiracy to distribute methamphetamine (meth) in the Eastern District of Tennessee.
According to his plea agreement on file with U.S. District Court, Hopkins admitted that he was responsible for at least 1.5 kilograms but less than 4.5 kilograms of actual meth. He admitted to cooking meth since 2000. In August 2014, Hopkins was arrested following a traffic stop in Whitley County, Ga., on his way to obtain a quarter pound of meth. Hopkins was a member of the Chicken Head Mafia, along with a number of the other individuals charged in this conspiracy. He and other members of the Chicken Head Mafia looked out and protected each other during the meth trafficking conspiracy. Hopkins also belonged to the Copperhead Motorcycle Club. At times, Hopkins admitted that he obtained eight to 10 ounces of meth per week from co-defendant Rick Munsey, 48, of Del Rio, Tenn. Hopkins sold meth to a large customer base in and around Hamblen County, Tenn.
Law enforcement agencies participating in the investigation included the Federal Bureau of Investigation, Hamblen County Sheriff’s Office, Morristown Police Department and Third and Fourth District Judicial Drug Task Forces. Assistant U.S. Attorney Wayne Taylor represented the United States.
This case was a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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Kingsport Resident Sentenced to 78 Months for the Manufacture and Detonation of A Pipe Bomb in Johnson City, TennesseeRead the Press Release
GREENEVILLE, Tenn. – On Mar.13, 2017, Christopher Wayne Alexander, 55, of Kingsport, Tenn., was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 78 months in federal prison for maliciously damaging the office and contents of Victory Orthotics, Inc., (Victory Orthotics) in Johnson City, Tenn., by means of a pipe bomb in July 2015. The court also ordered him to pay at least $300,000, and up to $330,000, in restitution for the damage to Victory Orthotics.
Alexander previously pleaded guilty to one count of damaging a building and property used in interstate commerce by means of fire and explosives (a pipe bomb) and three counts of possessing firearms (pipe bombs) not registered to him in the National Firearms Registration and Transfer Record. According to his plea agreement on file with U.S. District Court, Johnson City Police stopped Alexander’s vehicle a short time after the explosion for having a license plate obscured by tape, making it unreadable. An ensuing search of the vehicle revealed an assembled pipe bomb and components to manufacture additional pipe bombs. The pipe bomb in his vehicle was consistent with recovered remnants of the one detonated at the Victory Orthotics building. Officers also found a number of tools in the vehicle and/or on Alexander’s person, including a glass-breaking tool, a pry bar, pruning shears and knives. Testimony at the sentencing hearing indicated that he cut/disabled the security alarm before breaking in and planting the pipe bomb.
A search warrant executed at Alexander’s Kingsport residence the next day produced another assembled pipe bomb, along with fuses, remote firing devices, powders and ignition sources in a walk-in safe. Extensive literature regarding the manufacture of improvised explosive devices was found in the safe, including manuals titled “Homebuilt Flamethrowers,” “How to Make Disposable Silencers-A Complete Guide,” and “The Advanced Anarchist Arsenal Recipes for Improvised Incendiaries and Explosives.” A large number of firearms and ammunition were also located throughout the home.
Testimony from the sentencing hearing indicated that approximately one week after the explosion, residents and individuals maintaining properties near Victory Orthotics found two additional pipe bombs and brought them to the attention of law enforcement. These pipe bombs were virtually identical to the others recovered by law enforcement.
Law enforcement agencies participating in the investigation included the Bureau of Alcohol, Tobacco, Firearms and Explosives, State of Tennessee Bomb and Arson Section, Johnson City Police Department, Johnson City Fire Department and Federal Bureau of Investigation Evidence Response Team. Assistant U.S. Attorneys Nicholas Regalia and Wayne Taylor represented the United States.
Greeneville Resident Sentenced to 127 Months on Crack Cocaine Conspiracy ChargesRead the Press Release
GREENEVILLE, Tenn. – On Mar. 6, 2017, Fitzroy Turner, 35, of Greeneville, Tenn., was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 127 months in federal prison following a conviction for his leadership role in a conspiracy to distribute large quantities of cocaine base “crack” in the Eastern District of Tennessee. Following his prison sentence, he will also serve a five-year term of supervised release.
According to his plea agreement on file with U.S. District Court, Turner admitted to participating in the sale of crack cocaine on five separate occasions between February and June 2015 to an individual cooperating with law enforcement. He admitted to being accountable for at least 2.8 kilograms but less than 8.4 kilograms of crack cocaine between October 2012 and April 2016. Turner also admitted that he maintained a residence in Greeneville during the conspiracy for the purpose of manufacturing or distributing crack cocaine.
Co-defendants Barry Moore, 40, Zachery Moore, 51, and Sophia Arwood, 31, all of Greeneville, Tenn., were previously sentenced to 210, 96, and 60 months respectively.
Law enforcement agencies participating in the investigation included the Third District Judicial Drug Task Force, Drug Enforcement Administration (DEA) and Tennessee Bureau of Investigation (TBI). Assistant U.S. Attorney Wayne Taylor and former Special Assistant U.S. Attorney Corey Shipley represented the United States.
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Former First Tennessee Bank Employee Sentenced to Serve Three Years in Prison for Embezzlement of Funds and Tax EvasionRead the Press Release
GREENEVILLE, Tenn. – On Mar. 6, 2017, Kenneth L Miller, 37, of Greeneville, Tenn., was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 36 months in federal prison for embezzlement of funds and tax evasion. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for five years. He was also ordered to pay restitution in the amounts of $844,254.79 to First Tennessee Bank (First Tennessee), $161,018.00 to the Internal Revenue Service (IRS) and $81,014.18 to two additional victims of his crimes, for a total of $1,086,286.97.
Miller was an employee of First Tennessee from May 2000 until February 2016. In October 2016, he pleaded guilty to an information charging him with one count of theft by a bank officer or employee and four counts of attempting to evade or defeat tax. The plea agreement on file with U.S. District Court details his scheme, which involved a variety of techniques, including: earning and then abusing the trust of various clients by telling them falsely that he would engage in financial transactions for their benefit and using his position as a manager of the bank to identify clients who he knew did not review their monthly statements and also to identify inactive accounts from which to embezzle money because he knew the owners of such accounts would be unlikely to detect the embezzlement. Upon learning of the embezzlement by Miller, First Tennessee reimbursed most of the losses to their accountholders.
Of the total amount he embezzled, Miller obtained approximately $967,573.25 for his personal use. He lost or spent most of this through online gambling on various websites and making payments on various personal consumer debts. Miller did not claim any of these funds as income on his tax returns for 2012, 2013, 2014, and 2015, thus evading paying taxes in the approximate amount of $161,018.
Renae McDermott, FBI Special Agent in Charge, Knoxville Division stated, “The defendant engaged in a pattern of illegal, unauthorized transactions which violated the bank customers’ confidence and trust. Today’s sentencing sends a message that the FBI will actively investigate and pursue prosecution of persons in a position of trust and hold them accountable for their actions.”
Agencies involved in the investigation of this case include the FBI, IRS Criminal Investigation, and Federal Deposit Insurance Corporation. Assistant U.S. Attorney TJ Harker represented the United States.
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Greeneville Resident Sentenced to 210 Months on Crack Cocaine Conspiracy ChargesRead the Press Release
GREENEVILLE, Tenn. – On Feb.7, 2017, Barry Moore, 40, of Greeneville, Tenn., was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 210 months in federal prison following a conviction for his leadership role in a conspiracy to distribute large quantities of cocaine base “crack” in the Eastern District of Tennessee. Upon his release from prison he will be supervised by the U.S. Probation Office for 10 years.
According to his plea agreement on file with U.S. District Court, Moore admitted that between June and August 2015, he participated in the sale of crack cocaine on three separate occasions to an individual cooperating on behalf of law enforcement. On numerous occasions, Moore directed other co-defendants to deliver drugs for him. He often sold crack cocaine, or had others deal for him, directly from the back window of his Greeneville residence. Moore admitted that he was accountable for at least 2.8 kilograms but less than 8.4 kilograms of crack cocaine and that he had distributed at least two kilograms of a combination of crack cocaine and powder cocaine in Greeneville between October 2012 and April 2016.
Co-defendants Zachery Moore, 51, and Sophia Arwood, 31, both of Greeneville, Tenn., were previously sentenced to serve prison terms of 96 months and 60 months respectively. Both Zachery Moore and Arwood dealt crack cocaine for Barry Moore from his Greeneville residence. Other co-defendants Fitzroy Turner, 35, and Anlushan Evans, 38, both of Greeneville, Tenn., have sentencing hearings scheduled in the coming weeks.
Law enforcement agencies participating in the investigation included the Third District Judicial Drug Task Force, Drug Enforcement Administration and Tennessee Bureau of Investigation. Assistant U.S. Attorney Wayne Taylor and former Special Assistant U.S. Attorney Corey Shipley represented the United States.
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Former NASA Employee Sentenced to Serve Ten Years in Federal Prison for Coercion of a MinorRead the Press Release
CHATTANOOGA, Tenn. - Thomas de Matteis, 54, of Hazel Green, Ala., was sentenced on Feb. 27, 2017, by the Honorable Harry S. Mattice, Jr., U.S. District Court Judge, to serve 10 years in federal prison for coercing or enticing a minor to engage in sexual activity. Matteis pleaded guilty to this charge in November 2016.
At the time of his offenses, Matteis was employed by NASA in Alabama. An investigation started by the Tennessee Bureau of Investigation (TBI) and U.S. Homeland Security Investigations (HSI) revealed that he communicated online, both from his home and office in Alabama, with a law enforcement agent posing as a 14-year old girl. Matteis drove to Chattanooga, Tenn., expecting to meet the 14-year old and engage in sexual activity with her.
In addition to the TBI and HSI, once it was discovered that some of the criminal activity occurred in Alabama using his office computer, the NASA Office of Inspector General joined the investigation. Assistant U.S. Attorney Terra L. Bay represented the United States.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
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Greeneville Resident Sentenced to Twenty Years in Federal Prison for Crack Cocaine ConspiracyRead the Press Release
GREENEVILLE, Tenn. – On Feb.14, 2017, Braun Tarone Evans Dabbs, 33, of Greeneville, Tenn., was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 210 months in federal prison following a conviction for his role in a conspiracy to distribute large quantities of cocaine consecutive base “crack” in east Tennessee. Additionally, since Dabbs was on federal supervised release for a prior conviction during the time he engaged in this crack cocaine conspiracy, he received a 30-month sentence, for a total of 240 months.
Dabbs was initially convicted on federal crack cocaine conspiracy charges in 2009 and received a prison sentence of 42 months. Due to a change in the law, this sentence was subsequently reduced to 34 months. Upon his release from prison, he was placed on terms of supervised release, during which time he re-engaged in the sale of crack cocaine. On two separate occasions in June 2015, Dabbs sold crack cocaine in the amounts of 52 grams and 69.88 grams, to individuals working on behalf of law enforcement.
According to his plea agreement on file with U.S. District Court, Dabbs admitted that he was accountable for approximately 4,500 grams (4.5 kilograms) of crack cocaine from October 1, 2013 through July 21, 2015, all while on supervised release following his release from prison on his initial federal crack cocaine conviction.
Law enforcement agencies participating in the investigation included the Federal Bureau of Investigation, Johnson City Police Department and Third District Judicial Drug Task Force. Assistant U.S. Attorneys Nick Regalia, Wayne Taylor and Christian Lampe represented the United States.
This case was a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Chattanooga Man Convicted of Solicitation to Burn Down a Mosque in Islamberg, New YorkRead the Press Release
A federal jury today convicted Robert Doggart, 65, of Signal Mountain, Tennessee, of soliciting another person to violate federal civil rights laws by burning down a mosque in Islamberg, a hamlet outside Hancock, New York, announced Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division and United States Attorney Nancy Stallard Harr of the Eastern District of Tennessee. Doggart also was found guilty of soliciting another person to commit arson and two counts of threatening to destroy a building by fire or an explosive.
Evidence presented at trial established that between February and April of 2015, the defendant planned an armed attack on Islamberg, which is a community that is home to a large Muslim population. Doggart’s plans included burning down a mosque, a school and a cafeteria in the community. He also solicited others to join in his planned attack through Facebook posts, telephone conversations and in-person meetings. Doggart specifically targeted the mosque because it was a religious building, and he discussed burning it down or blowing it up with a Molotov cocktail or other explosive device.
“The Defendant sought out others to join him in a violent attack on a community of men, women, and children because of their religion,” said Acting Assistant Attorney General Wheeler. “We thank the jury for their service, and we will continue to vigorously enforce our nation’s laws that protect the ability of people of all faiths to live and worship in peace.”
“Our nation cannot tolerate threats by those who are willing to kill innocent children, women and men who do not share their religious beliefs or philosophy,” said U.S. Attorney Harr. “I am heartened that citizens from Chattanooga, a community that was victimized by domestic terrorism just 18 months ago, chose to condemn the threat of more terroristic acts. The jury carefully and attentively listened to the proof, deliberated cautiously for two days, and reached a verdict that reaffirms our American principles.”
“This conviction is the result of the hard work by the men and women of the FBI and our law enforcement partners,” said Special Agent in Charge Renae McDermott of the Knoxville Division of the Federal Bureau of Investigation. “The coordinated efforts of FBI Knoxville and Columbia, the USAO Eastern District of Tennessee, and DOJ were successful in proactively preventing this individual from carrying out his plans. It is a simple example of the rule of law and right of all citizens to pursue happiness in a safe environment is of paramount importance to law enforcement in the United States.”
At trial, the jury heard recorded phone conversations between Doggart and others, including one call in which Doggart said, “I don’t want to have to kill children, but there’s always collateral damage.” In another call, Doggart described his weapons as intended for killing people and not for hunting game.
The defendant faces a maximum penalty of up to 10 years in prison for each of the four counts of conviction. Sentencing is scheduled for May 31, 2017, before U.S. District Judge Curtis L. Collier of the Eastern District of Tennessee.
The case was investigated by the FBI’s Knoxville Division, and was prosecuted by Civil Rights Division Trial Attorney Saeed A. Mody and Assistant U.S. Attorney Perry H. Piper of the Eastern District of Tennessee.
Chattanooga Man Convicted of Solicitation to Burn Down a Mosque in Islamberg, New YorkRead the Press Release
A federal jury today convicted Robert Doggart, 65, of Signal Mountain, Tennessee, of soliciting another person to violate federal civil rights laws by burning down a mosque in Islamberg, a hamlet outside Hancock, New York, announced Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division and United States Attorney Nancy Stallard Harr of the Eastern District of Tennessee. Doggart also was found guilty of soliciting another person to commit arson and two counts of threatening to destroy a building by fire or an explosive.
Evidence presented at trial established that between February and April of 2015, the defendant planned an armed attack on Islamberg, which is a community that is home to a large Muslim population. Doggart’s plans included burning down a mosque, a school and a cafeteria in the community. He also solicited others to join in his planned attack through Facebook posts, telephone conversations and in-person meetings. Doggart specifically targeted the mosque because it was a religious building, and he discussed burning it down or blowing it up with a Molotov cocktail or other explosive device.
“The Defendant sought out others to join him in a violent attack on a community of men, women, and children because of their religion,” said Acting Assistant Attorney General Wheeler. “We thank the jury for their service, and we will continue to vigorously enforce our nation’s laws that protect the ability of people of all faiths to live and worship in peace.”
“Our nation cannot tolerate threats by those who are willing to kill innocent children, women and men who do not share their religious beliefs or philosophy,” said U.S. Attorney Harr. “I am heartened that citizens from Chattanooga, a community that was victimized by domestic terrorism just 18 months ago, chose to condemn the threat of more terroristic acts. The jury carefully and attentively listened to the proof, deliberated cautiously for two days, and reached a verdict that reaffirms our American principles.”
“This conviction is the result of the hard work by the men and women of the FBI and our law enforcement partners,” said Special Agent in Charge Renae McDermott of the Knoxville Division of the Federal Bureau of Investigation. “The coordinated efforts of FBI Knoxville and Columbia, the USAO Eastern District of Tennessee, and DOJ were successful in proactively preventing this individual from carrying out his plans. It is a simple example of the rule of law and right of all citizens to pursue happiness in a safe environment is of paramount importance to law enforcement in the United States.”
At trial, the jury heard recorded phone conversations between Doggart and others, including one call in which Doggart said, “I don’t want to have to kill children, but there’s always collateral damage.” In another call, Doggart described his weapons as intended for killing people and not for hunting game.
The defendant faces a maximum penalty of up to 10 years in prison for each of the four counts of conviction. Sentencing is scheduled for May 31, 2017, before U.S. District Judge Curtis L. Collier of the Eastern District of Tennessee.
The case was investigated by the FBI’s Knoxville Division, and was prosecuted by Civil Rights Division Trial Attorney Saeed A. Mody and Assistant U.S. Attorney Perry H. Piper of the Eastern District of Tennessee.
Tommy Allen “Bert” Sentenced to Serve 240 Months in Prison for Distributing Crack CocaineRead the Press Release
GREENEVILLE, Tenn. – On Jan. 31, 2017, Tommy Allen, a.k.a. Bert, 30, of Kingsport, Tenn., formerly of Forrest City, Ark., was sentenced by the Honorable R. Leon Jordan, U.S. District Court Judge, to serve 240 months in federal prison for distributing crack cocaine. Upon his release from prison, he will be on supervised release for five years. There is no parole in the federal system.
Tommy Allen pleaded guilty in June 2016 to a conspiracy to distribute 280 grams or more of crack cocaine. He was a member of a drug trafficking organization, involving 10 co-defendants, which obtained powder cocaine in Forrest City, Ark., and then transported it to Kingsport, Tenn., where it was “cooked” into crack cocaine and distributed in the Tri-Cities. Tommy Allen, the brother of the conspiracy’s leader, Billy Allen, a.k.a. “Grill,” distributed crack cocaine and fielded phone calls from customers ordering crack cocaine from the organization. Tommy Allen admitted to being conservatively responsible for distributing between 840 grams and 2.8 kilograms (approximately two to six pounds) of crack cocaine. He faced a minimum mandatory sentence of 10 years in prison as a result of trafficking in at least 280 or more grams of crack cocaine.
Agencies involved in this investigation included the Second Judicial District Drug Task Force, Kingsport Police Department, Sullivan County Sheriff’s Office, Bristol Police Department, Tennessee Bureau of Investigation, Bureau of Alcohol Tobacco Firearms and Explosives, Internal Revenue Service, and Drug Enforcement Administration. J. Gregory Bowman, Assistant U.S. Attorney 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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Morristown Resident Sentenced to 262 Months in Federal Prison for Role in Methamphetamine ConspiracyRead the Press Release
GREENEVILLE, Tenn. – On Jan. 31, 2017, Jason Wayne Helton, a.k.a. Crack Baby, 33, of Morristown, Tenn., was sentenced by the Honorable R. Leon Jordan, U.S. District Court Judge, to serve 262 months in federal prison following a conviction for his role in a conspiracy to distribute methamphetamine in east Tennessee.
According to his plea agreement on file with U.S. District Court, Helton sold quantities of methamphetamine to an individual working on behalf of law enforcement on three occasions between December 2015 and March 2016. In February 2016, a federal search warrant was executed at a residence in Stone Mountain, Ga., where Helton was present and scheduled to obtain and transport an ounce and a half of methamphetamine back to Tennessee. Another federal search warrant was executed at Helton’s residence in Morristown in March 2016 which resulted in the seizure of an additional quantity of methamphetamine.
Law enforcement agencies participating in the investigation included the Federal Bureau of Investigation, Grainger County Sheriff’s Office, Hamblen County Sheriff’s Office, Morristown, Tennessee Police Department and the Third and Fourth District Judicial Drug Task Forces. Assistant U.S. Attorney Wayne Taylor represented the United States.
This case was a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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Chicago Man Sentenced to 90 Months on Heroin and Firearms ChargesRead the Press Release
CHATTANOOGA, Tenn. – On Jan. 27, 2017, Cornelius Q. Hill, 29, of Chicago, was sentenced to 90 months in prison by the Honorable Travis R. McDonough, U.S. District Judge, for possession with intent to distribute heroin, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm. Hill pleaded guilty to these charges, contained in a federal indictment, in October 2016.
According to information on file with the U.S. District Court, in August 2016 Drug Enforcement Administration (DEA) Special Agents seized approximately 40 grams of heroin and a loaded firearm from a hotel room Hill was using in Chattanooga. Hill admitted the heroin and firearm were his and that he was sent down to Chattanooga from Chicago to sell heroin for the Vice Lords, a violent street gang based out of Chicago.
Hill’s sentence reflected the danger and risk of harm his conduct posed to society. The United States asked the court to impose a sentence that would deter future drug dealers from Chicago and elsewhere from traveling to the Eastern District of Tennessee to sell their drugs.
The indictment and subsequent conviction of Hill was the result of an investigation conducted by the DEA. Assistant U.S. Attorney Michael D. Porter 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.
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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Knoxville Resident Sentenced to over 15 Years in Prison for Possessing and Distributing Child PornographyRead the Press Release
KNOXVILLE, Tenn. – On Jan. 17, 2017, Andrew Scott Conard, 30, of Knoxville, Tenn., was sentenced by the Honorable Thomas Varlan, Chief U.S. District Judge, to serve 188 months in federal prison. Additionally, upon his release from prison, he will be supervised by the U.S. Probation office for 15 years.
In June 2016, Conard pleaded guilty to one count of possessing child pornography and one count of distribution of child pornography, which were charges contained in a federal indictment. In the plea agreement on file with the U.S. District Court, Conard admitted that he maintained a collection of child pornography on his computer, which he downloaded over the internet, and knowingly made available to other persons through a peer-to-peer file-sharing network, with the anticipation of being able to obtain additional child pornography on the same file-sharing network.
In March 2014, an investigator with the Knoxville Internet Crimes Against Children Task Force (ICAC) downloaded a child pornography video from Conard’s computer over the internet, though the file sharing network set up by Conard. Federal investigators executed a warrant at Conard’s residence in May 2016 and seized his computer. A subsequent forensic examination of the computer revealed 91 images and 164 videos of child pornography, some of which contained known child victims.
This case was investigated by the Knoxville ICAC. Assistant U.S. Attorney Frank Dale 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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Georgia Resident Sentenced to Life in Federal Prison for Methamphetamine ConspiracyRead the Press Release
CHATTANOOGA, Tenn. – On Jan. 12, 2017, James Hedelsky, 59, of Bartow County, Ga, was sentenced to serve life in prison by the Honorable Travis R. McDonough, U.S. District Judge. Following a September 2016 jury trial, Hedelsky was convicted of conspiracy to distribute and possess with the intent to distribute 50 grams or more of methamphetamine (actual) in the Eastern District of Tennessee.
The life sentence given to Hedelsky was based on his prior criminal history which, according to information on file with the U.S. District Court, included several felony drug convictions, as well as manslaughter, assault, and possession of a firearm during the commission of a crime. The sentence also included an enhancement for possessing a firearm during relevant conduct related to the methamphetamine distribution offenses.
The indictment and subsequent conviction of Hedelsky were the results of an investigation conducted by the 17th Judicial Drug Task Force and Drug Enforcement Administration. Assistant U.S. Attorney Michael D. Porter represented the United States.
Former Insurance and Annuities Salesman Sentenced to Thirty-Six Months for Scheme to Defraud Elderly InvestorsRead the Press Release
CHATTANOOGA, Tenn. – On Jan. 13, 2017, John Allen Morris, Jr., 51, of Knoxville, Tenn., was sentenced by the Honorable Travis R. McDonough, U.S. District Judge, to serve 36 months in federal prison. Morris was also ordered to pay over $1.2 million in restitution to identified victims of his offenses.
In August 2016, Morris pleaded guilty to one count each of wire fraud, mail fraud, bank fraud, and wrongful use of a government seal, all charges contained in a May 2016 federal indictment.
A detailed description of his scheme to defraud is included in the plea agreement on file with U.S. District Court. The agreement provides that during 2005-2006, Morris was employed as an insurance and annuities broker with a legitimate insurance company. His scheme to sell fraudulent annuities to elderly clients then began in late 2006.
The scheme devised by Morris started with the establishment of two fictitious companies in which he convinced elderly clients to cash out legitimate annuities and invest in them, promising a higher rate of return. Morris created and provided his clients with imaginary elaborate and personalized financial statements reflecting the supposed status of their accounts. He established multiple accounts at various banks into which he 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.
Agencies participating in this investigation included the Federal Bureau of Investigation, U.S. Postal Inspection Service, and Tennessee Department of Commerce and Insurance. Assistant U.S. Attorney Steve Neff represented the United States.
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U.S. Nuclear Engineer Pleads Guilty to Violating the Atomic Energy ActRead the Press Release
WASHINGTON – Szuhsiung Ho, aka Allen Ho, 66, a naturalized U.S. citizen, pleaded guilty to conspiracy to unlawfully engage or participate in the production or development of special nuclear material outside the U.S., without the required authorization from the U.S. Department of Energy (DOE) in violation of the Atomic Energy Act.
Acting Assistant Attorney General for National Security Mary B. McCord and U.S. Attorney Nancy Stallard Harr of the Eastern District of Tennessee made the announcement.
On April 2016, a federal grand jury issued a two-count indictment against Ho; China General Nuclear Power Company (CGNPC), the largest nuclear power company in China, and Energy Technology International (ETI), a Delaware corporation. At the time of the indictment Ho was a nuclear engineer, employed as a consultant by CGNPC and was also the owner of ETI. CGNPC specialized in the development and manufacture of nuclear reactors and was controlled by China’s State-Owned Assets Supervision and Administration Commission.
According to documents filed in the case, beginning in 1997 and continuing through April 2016, Ho conspired with others to engage or participate in the development or production of special nuclear material in China, without specific authorization to do so from the U.S. Secretary of Energy, as required by law. Ho assisted CGNPC in procuring U.S.-based nuclear engineers to assist CGNPC and its subsidiaries with designing and manufacturing certain components for nuclear reactors more quickly by reducing the time and financial costs of research and development of nuclear technology. In particular, Ho sought technical assistance related to CGNPC’s Small Modular Reactor Program; CGNPC’s Advanced Fuel Assembly Program; CGNPC’s Fixed In-Core Detector System; and verification and validation of nuclear reactor-related computer codes.
Under the direction of CGNPC, Ho also identified, recruited, and executed contracts with U.S.-based experts from the civil nuclear industry who provided technical assistance related to the development and production of special nuclear material for CGNPC in China. Ho and CGNPC also facilitated the travel to China and payments to the U.S.-based experts in exchange for their services.
Sentencing has been set for May 17, 2017, at 11:00 a.m., in U.S. District Court in Knoxville, Tennessee. Ho faces a maximum sentence of 10 years in prison and a maximum $250,000 fine. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case was investigated by the FBI, Tennessee Valley Authority-Office of the Inspector General, DOE-National Nuclear Security Administration and U.S. Immigration and Customs Enforcement Homeland Security Investigations, with assistance from other agencies. Assistant U.S. Attorneys Charles E. Atchley Jr. and Bart Slabbekorn of the Eastern District of Tennessee, and Trial Attorney Casey T. Arrowood of the Counterintelligence and Export Control Section and Attorney Jeffrey M. Smith of the Appellate Unit in the National Security Division, represented the U.S.
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U.S. Attorney General’s Smart on Crime Initiative Successfully Implemented in the Eastern District of TennesseeRead the Press Release
KNOXVILLE, Tenn.- At the direction of the U.S. Attorney General, in early 2013 the U.S. Department of Justice (Department) launched a comprehensive review of the criminal justice system in order to identify reforms that would ensure federal laws are enforced more fairly and—in an era of reduced budgets—more efficiently. Five goals were identified as a part of this review:
- To ensure finite resources are devoted to the most important law enforcement priorities;
- To promote fairer enforcement of the laws and alleviate disparate impacts of the criminal justice system;
- To ensure just punishments for low-level, nonviolent offenders;
- To bolster prevention and reentry efforts to deter crime and reduce recidivism; and,
- To strengthen protections for vulnerable populations.
This initiative, which the Department named “Smart on Crime” (SOCI), was implemented locally by the U.S. Attorney’s Office for the Eastern District of Tennessee, partnering with the Chief of the U.S. Probation and Pretrial Services Office, Tony Anderson, and his staff. The local program focused on ways to make the district safer by providing federal ex-offenders with the resources necessary to successfully re-enter the community and reduce recidivism.
Over the past year, stakeholders and others have assisted ex-offenders participating in the SOCI program by connecting them with much needed resources such as: educational programs at community colleges and universities; relationship building skills; furniture to aid with independent living; and a welcoming church to facilitate faith-based healing.
Stakeholders who contributed to the Chattanooga effort included: the Bureau of Alcohol, Tobacco, Firearms and Explosives; Bureau of Prisons Half-Way House; United Way 2-1-1; Tennessee Department of Human Services, Pastor Ternae Jordan and Mt. Canaan Baptist Church; Career Center; Chattanooga State Community College; BlueCross BlueShield; the Marion County Chaplain; Labor and Workforce Development; and Johnson Mental Health. Stakeholders contributing to the Knoxville reentry effort included: Knoxville Leadership Foundation; Tennessee Department of Safety; Knoxville Area Rescue Ministries; Knox County Health Department; Knoxville Police Department; Federal Bureau of Investigation; Susannah House; Helen Ross McNabb; Cokesbury Church; the office of Knoxville Mayor Madeline Rogero; and Pastor James Davis and Eternal Life Harvest Center. Finally, stakeholders who contributed to the Johnson City reentry effort included: Grace Fellowship Church; Summit Leadership Foundation; Frontier Health; Families Free; East Tennessee State University; First Christian Church; Grace Fellowship Church; Christ The Savior Greek Orthodox Church; Tri-Cities Baptist Church; St. Mary’s Catholic Church; Calvary Church; Boone’s Creek Christian Church; Faith Miracle Sanctuary; Dr. Tim Dunn and Spine and Sports Chiropractic; Carrabba’s Italian Grill; Drug Enforcement Administration, and the Johnson City Police Department. This impressive group of stakeholders represented only a select sample of the community leaders who dedicated time and resources to this effort.
Between January and December 2016, participants in the SOCI program substantively engaged the stakeholders and used provided resources to facilitate their successful re-entry. In addition to completing the program through attendance and stakeholder use and engagement, participants stayed in substantial compliance with their supervised release conditions imposed by the courts.
U.S. Attorney Nancy Stallard Harr is pleased to announce that approximately 31 ex-offenders successfully completed the SOCI program in 2016. “As a result, these ex-offenders are in a better positon to become productive members of our communities, making east Tennessee a safer and better place to live. Our efforts in this area will continue into 2017 with a special emphasis on juvenile offenders,” said U.S. Attorney Harr. “I would further like to commend Assistant U.S. Attorney Brooklyn Sawyers for her leadership, dedication, and coordination of the SOCI program for the district,” added U.S. Attorney Harr.
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Couple Sentenced to Serve a Combined Total of over Fifty-Three Years in Federal Prison for Producing Child PornographyRead the Press Release
CHATTANOOGA, Tenn. – On Dec. 16, 2016, Wesley Thomas Ryan, 28, of Fayetteville, Tenn., and Rachael Gabrielle Boyett, 21, of Taft, Tenn., were sentenced by the Honorable Travis R. McDonough, U.S. District Court Judge, for production of child pornography. Ryan was ordered to serve 360 months and Boyett was ordered to serve 280 months. Upon their release from prison, both will be under the supervision of the U.S. Probation Office for at least 10 years as well as be required to register as sexual offenders.
An investigation by the Federal Bureau of Investigation revealed that both Ryan and Boyett had recorded themselves and two local children engaging in sexual activity. Assistant U.S. Attorney Terra L. Bay 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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New Century Coal Fraud Ends in Lengthy Prison Sentences for Ten IndividualsRead the Press Release
GREENEVILLE, Tenn. – U.S. District Judge J. Ronnie Greer has sentenced 10 men to a collective total of 284 months in federal prison for their roles in the operation of a fraudulent investor scheme which defrauded 168 investors of more than $14 million dollars. The judge also ordered terms of supervised release by the U.S. Probation office, special assessments and $14,092,205 in restitution to the victims of the scheme.
The 10 men and their prison sentences include: Brian C. Rose, 37, Piney Flats, Tenn., 108 months; Hugh Sackett, 86, Anderson, S.C., 12 months; Robert McGregor, 38, Bowling Green, Ky., 12 months; Johnny D. Phillips, 35, Bowling Green, Ky., 30 months; Dallas McRae, 46, Orlando, Fla., 24 months; Thomas Berry, 36, Bowling Green, Ky., 27 months; Jason Smith, 41, Franklin, Ky., 27 months; David Rose, 66, Louisville, Ky., 18 months; Jim Robinson, 57, New Albany, Ind., two months; and Brent Loveall, 33, Louisville, Ky., 24 months.
Brian Rose led New Century Coal, which advertised that it developed Blue Gem coal, a special type of coal used in the manufacture of computer electronics. New Century Coal staff sold shares in nine different limited partnerships and falsely represented the existence of coal reserves, profitability, and ownership of the coal mines. No coal was ever developed and 90 percent of the investor funds was diverted to support the extravagant lifestyles of the men referenced above, including thoroughbred horses, multiple homes, ARCA Truck Racing, and extensive travel.
U.S. Attorney Nancy Stallard Harr said, “As a result of the investigation efforts and joint aggressive collection by the federal agencies involved with this case, the Department of Justice expects to be able to return some of what they lost to the victims of this fraud.” U.S. Attorney Harr added that federal agents seized homes, cars, horses, cash, and personal property which was purchased with investor funds.
Agencies involved in this investigation included the U.S. Secret Service, Federal Bureau of Investigation, Internal Revenue Service - Criminal Investigations, and Securities & Exchange Commission Enforcement Division. Assistant U.S. Attorneys Helen Smith, Corey Shipley, and Anne-Marie Svolto represented the United States.
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Knoxville Man Pleads Guilty to Sex Trafficking Conspiracy and Drug OffensesRead the Press Release
Marcus D. Washington of Knoxville, Tennessee, pleaded guilty today to one count of conspiracy to commit sex trafficking by force, fraud or coercion; conspiracy to possess with intent to distribute a Schedule II controlled substance; and possession with intent to distribute a Schedule II controlled substance.
According to documents submitted in connection with the plea, on Sept. 25, 2013, Washington arranged for a woman identified as K.C. to meet with a client at a hotel to perform commercial sex acts. Washington did not know that this client was actually an undercover law enforcement officer. Shortly thereafter, Washington was arrested outside of the hotel and found to be in possession of Oxycodone.
A subsequent investigation revealed that Washington and another person had recruited K.C. to engage in prostitution. Washington knew that K.C. was addicted to Oxycodone and that she feared withdrawal sickness. He withheld Oxycodone from K.C. until she engaged in commercial sex acts, and when K.C. objected to continuing to perform acts of prostitution, Washington used physical force and threats to compel her to continue.
“This defendant threatened, abused and forced a vulnerable woman to engage in prostitution,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “Human trafficking violates the law and threatens the most basic standards of human dignity and decency. No conviction can undo the harm he inflicted, but we hope this guilty plea provides a measure of relief and justice to the victim in this case.”
Washington faces a maximum sentence of life in prison, as well as up to a $250,000 fine. Sentencing has been set for March 27, 2017. As part of his plea agreement, Washington will pay restitution to two women identified as victims of his human trafficking offense.This case was investigated by the FBI, and is being prosecuted by Trial Attorneys William Nolan, Rose E. Gibson and Nicholas Durham of the Civil Rights Division’s Criminal Section, with the assistance and support of the U.S. Attorney’s Office of the Eastern District of Tennessee.
Washington PleaMountain States Health Alliance Settles Americans with Disability Act Claim with United StatesRead the Press Release
GREENEVILLE, Tenn. - The United States reached a settlement on November 30, 2016, with Mountain States Health Alliance (MSHA), a not-for-profit health care organization based in Johnson City, Tenn., that operates 13 hospitals serving a 29-county region spanning northeast Tennessee, southwest Virginia, southeastern Kentucky, and western North Carolina. In a complaint filed in the U.S. District Court for the Eastern District of Tennessee at Greeneville, Christopher and Donna Cantrell, both of whom are deaf, alleged that they were denied effective communication under Title III of the Americans with Disabilities Act (ADA) during several admissions of their adult daughter to the Johnson City Medical Center (JCMC), a MSHA facility. The admissions at JCMC, which totaled 115 days, were for treatment of high-grade Burkitt’s lymphoma. Their daughter succumbed to the disease in May 2015 while she was still in the hospital.
The Cantrells alleged in the lawsuit that they were not provided with an interpreter or other auxiliary aid until shortly before their daughter’s death. Instead, the Cantrells alleged that they were forced to rely on their daughter and other family members, all of whom were able to hear, to interpret for them. As a result of the complaint, the U.S. Attorney’s Office for the Eastern District of Tennessee opened a civil investigation under the ADA.
As a result of the settlement, MSHA has agreed to implement measures for all of its hospitals that are aimed at protecting the rights of patients and companions who are deaf or hard of hearing. Those measures include the following: (1) appointing an ADA administrator at each facility to provide oversight and guidance; (2) identifying services that can provide interpreters to each facility in a timely manner; (3) providing notice to patients and their companions of their rights under the ADA; (4) developing an assessment plan to effectively determine the appropriate auxiliary aid for each situation; (5) providing annual training about the rights afforded by the ADA and MSHA’s policy to meet those requirements; and (6) compliance reports to be submitted to the U.S. Attorney’s Office for monitoring. The agreement is effective for 3 years. In addition, MSHA will pay the United States a statutory penalty in the amount of $50,000. This is the largest civil penalty that any U.S. Attorney’s Office has received in a matter involving effective communication in hospital settings.
“Individuals who are deaf or hearing impaired must not be denied equal access to interpretive services in medical entities such as hospitals and other medical facilities that are covered under the ADA,” said U.S. Attorney Nancy S. Harr. “I commend MSHA for cooperating in our investigation and working to promote more effective communications with persons who are deaf or hard of hearing.”
Assistant U.S. Attorneys Kenny L. Saffles and Leah W. McClanahan represented the United States in the investigation.
Members of the public should be reminded that the claims settled by this agreement are allegations only and that there has been no determination of liability.
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Arkansas Resident Sentenced to Twenty Years in Federal Prison for Distributing Crack CocaineRead the Press Release
GREENEVILLE, Tenn. – On Nov. 29. 2016, Billy Ray Allen, a.k.a. Grill, 42, of Widener, Ark., was sentenced by the Honorable R. Leon Jordan, U.S. District Court Judge, to serve 240 months in federal prison. Following his prison term, he will be on supervised release for ten years. There is no parole in the federal system.
Allen pleaded guilty in August 2016 to a conspiracy to distribute 280 grams or more of crack cocaine and money laundering. He was the leader of a drug trafficking organization, involving 10 individuals, which obtained powder cocaine in Forrest City, Ark., then transported it to Kingsport, Tenn., where it was “cooked” into crack cocaine and distributed in the Tri-Cities. Allen admitted to being conservatively responsible for distributing between 2.8 and 8.4 kilograms (6 to 18.5 pounds) of crack cocaine. He also utilized the proceeds from the sale of crack cocaine to buy vehicles and real estate, all of which were placed in the names of third parties in an effort to conceal his ownership from authorities. Allen faced a minimum mandatory sentence of 20 years in prison as a result of trafficking in at least 280 or more grams of crack cocaine.
Agencies involved in this investigation included the Second Judicial District Drug Task Force, Kingsport Police Department, Sullivan County Sheriff’s Office, Bristol Police Department, Tennessee Bureau of Investigation, Bureau of Alcohol Tobacco Firearms and Explosives, Internal Revenue Service, and Drug Enforcement Administration. 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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Arkansas Resident Sentenced to Serve over 24 Years in Prison for Distributing Crack CocaineRead the Press Release
GREENEVILLE, Tenn. – Marco Bobo, 39, of Forrest City, Ark., was sentenced on Nov. 21, 2016, by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 292 months in federal prison. Upon his release from prison, he will be supervised by the U.S. Probation Office for five years. There is no parole in the federal system.
Bobo pleaded guilty in August 2016 to a conspiracy to distribute 280 grams or more of crack cocaine. He was the leader of a drug trafficking organization involving seven co-defendants, which obtained powder cocaine in Forrest City, Ark., and transported it to Kingsport, Tenn., where it was “cooked” into crack cocaine and distributed in the Tri-Cities. Bobo admitted to being conservatively responsible for distributing between 2.8 and 8.4 kilograms (6 to 18.5 pounds) of crack cocaine. In addition to receiving cash, he also received firearms in exchange for crack cocaine, some of which he kept and some he distributed to known drug traffickers.
Bobo faced a minimum mandatory sentence of at least 20 years in prison as a result of trafficking in at least 280 or more grams of crack cocaine.
Agencies involved in this investigation included the Second Judicial District Drug Task Force, Kingsport Police Department, Sullivan County Sheriff’s Office, Bristol Police Department, Tennessee Bureau of Investigation, Bureau of Alcohol Tobacco Firearms and Explosives, Internal Revenue Service, and Drug Enforcement Administration. J. Gregory Bowman, Assistant U.S. Attorney 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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Cosby Resident Sentenced to Serve Ten Years in Prison for Possession of Marijuana for Distribution and Violation of Supervised ReleaseRead the Press Release
GREENEVILLE, Tenn. –George Mooneyham, 57, of Cosby, Tenn., was sentenced on Nov. 16, 2016, by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 120 months in federal prison.
In July 2016, Mooneyham pleaded guilty to possession with the intent to distribute marijuana. At the time of the investigation into his distribution of marijuana, Mooneyham was already under the supervision of a federal probation officer, following service of a prison sentence for his 2004 conviction for distribution of cocaine in the U.S. District Court for the Eastern District of Tennessee. Mooneyham’s participation in new criminal activity was a violation of the terms of his supervised release. The court sentenced Mooneyham to 60 months for the marijuana distribution conviction and to a consecutive 60 months for violation of the terms of his supervised release for a net effective sentence of 120 months.
Agencies involved in this investigation included the Cocke County Sheriff’s Office, Drug Enforcement Administration, U.S. Marshal Service, and U.S. Probation. Assistant U.S. Attorney, J. Gregory Bowman, represented the United States.
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Lead Methamphetamine Trafficker Sentenced to 23 Years in PrisonRead the Press Release
GREENEVILLE, Tenn. -- On Nov. 9, 2016, Richard Alan Davis, 44, of Atlanta, was sentenced to serve 23 years in federal prison by the Honorable J. Ronnie Greer, U.S. District Judge. Upon his release from prison, Davis will be supervised for five years by the U.S. Probation Office.
Davis pleaded guilty to a federal indictment charging him with conspiring to distribute methamphetamine (meth). He was a leader of a drug distribution network that trafficked high purity meth obtained in Atlanta into northeast Tennessee and southwest Virginia, operating out of several high-end hotel rooms in the Atlanta area and supplying dozens of conspirators with large quantities of meth.
The investigation into Davis and his associates resulted in a series of nine federal cases in the Eastern District of Tennessee and dozens of individuals prosecuted by the state of Tennessee in the Third Judicial District. Related cases were also brought in the U.S. District Court for the Western District of Virginia and by the Tennessee First Judicial District Attorney General. Davis was the primary source of supply of the dozens of individuals prosecuted in these related cases. The operation has also resulted in the seizure of approximately five kilograms of meth and 20 firearms.
This investigation was a multi-year collaborative effort of numerous law enforcement agencies including the Greene County Sheriff’s Office, Greeneville Police Department, Hawkins County Sheriff’s Office, Third Judicial Drug Task Force, First Judicial Drug Task Force, Sandy Springs (Georgia) Police Department, Hall County (Georgia) Sheriff’s Office, Tennessee Bureau of Investigation, U.S. Department of Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Drug Enforcement Administration. The Third and First Judicial District Attorney’s Offices in Tennessee actively partnered with the U.S. Attorney’s Office in a coordinated effort to advance this operation. The Rabun County, Georgia District Attorney’s Office provided critical early assistance. The U.S. Attorney’s Office for the Western District of Virginia also provided assistance in the shared efforts to combat Davis’ drug trafficking operations. Assistant U.S. Attorney Zachary Lee represented the United States in the Western District of Virginia. Assistant U.S. Attorney J. Christian Lampe represented the United States in the Eastern District of Tennessee.
This prosecution was brought as a part 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, multilevel 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.
Jonesborough Resident Sentenced to Serve 42 Months in Prison for Possession of a Firearm After a Felony ConvictionRead the Press Release
GREENEVILLE, Tenn. –Benjamin Harold Hall, 35, of Jonesborough, Tenn., was sentenced on Nov. 10, 2016, by the Honorable Pamela L. Reeves, U.S. District Court Judge, to serve 42 months in federal prison.
Hall pleaded guilty in June of 2016 to being a felon in possession of two firearms. The firearms were discovered when he was arrested by officers, after an August 2015 domestic altercation at his residence in Jonesborough. Federal law makes it a crime for anyone convicted of a felony to possess a firearm or ammunition.
Agencies involved in this investigation included the Washington County Sheriff’s Office and 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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Two More Individuals Sentenced in Tax Fraud and Money Laundering CaseRead the Press Release
KNOXVILLE, Tenn. – On Nov. 3, 2016, Luis Carvajal, 52, of Loudon, Tenn., was sentenced by the Honorable Thomas A. Varlan, Chief U.S. District Court Judge, to serve 30 months in prison for his participation in a conspiracy to submit false tax returns and a conspiracy to commit money laundering. Carvajal previously pleaded guilty to both these charges.
Amado Valdez-Morales, 50, of Oak Ridge, Tenn., was also sentenced by Chief Judge Varlan to serve 42 months in prison, for his role in the false tax return and money laundering conspiracies as well as illegal entry by a previously deported felon. Valdez-Morales, who is an illegal immigrant and citizen of Honduras, previously pleaded guilty to these charges.
In addition to their prison sentences, Carvajal was ordered to forfeit a residence in Loudon, $376,152 in seized funds and received a money judgement against him for $7,859,000. Valdez-Morales was ordered to forfeit $630 in cash seized by federal investigators and received a money judgement against him in the amount of $2.5 million. He will also be subject to deportation to Honduras upon his release from prison.
The offenses of Carvajal and Valdez-Morales were part of a scheme that involved the use of phony identification documents for the submission of fraudulent federal income tax returns in order to obtain refundable tax credits. The scheme resulted in the theft of more than $10.8 million from the U.S. taxpayers. Other who were previously sentenced for their roles in these conspiracies included: husband and wife Bertha Del Pilar Vargas, 48, and Martin Ayala, 45, both of Knoxville, Tenn.; Mayra Edith Blair, 41, of Knoxville, Tenn.; and Nery Irrael Grande-Jinenez, of Durham, N.C.
Agencies involved in this investigation included the Internal Revenue Service, Homeland Security Investigations, U.S. Postal Inspection Service, and Tennessee Highway Patrol Identity Crimes Unit. Assistant U.S. Attorneys Frank M. Dale, Jr. and Jennifer Kolman represented the United States.
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Nancy Stallard Harr Sworn in as U.S. Attorney for the Eastern District of TennesseeRead the Press Release
GREENEVILLE, Tenn. - Nancy Stallard Harr was administered the oath of office as U.S. Attorney for the Eastern District of Tennessee by Chief Judge Thomas Varlan on Friday, Oct. 28, 2016 at the James H. Quillen Federal Courthouse in Greeneville, Tenn. Harr had served as the Interim U.S. Attorney by appointment of the Attorney General of the United States, Loretta Lynch. Pursuant to their statutory authority, the federal district judges selected Harr to serve until the nomination and confirmation of a Presidentially appointed, Senate confirmed successor.
Harr is a native of Bristol, Va., and former prosecutor with the Second Judicial District Attorney’s office in Blountville. She joined the U.S. Attorney’s Office in 1995 in Knoxville, and returned to northeast Tennessee as supervisor of the Greeneville branch office in 2001. In 2011 she was named First Assistant U.S. Attorney, and later became the Acting United States Attorney upon the retirement of William C. Killian in 2015. Her husband, Paul A. Harr is an attorney in private practice in Blountville, Tenn.
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William Anthony Hoffa Sentenced to Serve 25 Years in Prison for Receiving, Distributing, and Possessing Child PornographyRead the Press Release
GREENEVILLE, Tenn. – William Anthony Hoffa, 29, of Newport and Morristown, Tenn., was sentenced on Oct. 24, 2016, by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 300 months in federal prison. Hoffa was also ordered to remain under supervised release by the U.S. Probation Office for the remainder of his life, comply with special sex offender conditions of supervised release, register with state sex offender registries, and pay $100 special assessment.
Hoffa pleaded guilty in July 2016 to receiving, distributing, and possessing child pornography while he resided at different locations in Morristown, Tenn. According to the plea agreement on file with U.S. District Court, he committed these offenses by electronic mail on different dates in 2014 from both an apartment in Morristown and a rented home. When he was arrested in June 2014, Hoffa possessed additional child pornography stored on his mobile telephone, including 312 still images and four videos of child pornography.
The charges against Hoffa were the result of an investigation by the Morristown Police Department. Assistant U.S. Attorney Helen Smith, 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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Newport Resident Sentenced to Serve 188 Months in Prison for Unlawfully Possessing FirearmsRead the Press Release
GREENEVILLE, Tenn. – On Oct 25, 2016, Freddie Coufax Swaggerty, 52, of Newport, Tenn., was sentenced by the Honorable R. Leon Jordan, U.S. District Court Judge, to serve 188 months in federal prison. Swaggerty was also ordered to remain under supervised release by the U.S. Probation Office for five years after he is released from federal prison and pay a $100 special assessment.
After a jury trial, Swaggerty was convicted in May 2016 of two counts of being a convicted felon in possession of a firearm. Evidence produced at trial established that Swaggerty approached Cocke County Sheriff’s Officers on the Cocke County Courthouse lawn with three loaded firearms protruding from his pockets.
The charges against Swaggerty were the result of an investigation conducted by the Cocke County Sheriff’s Office. Assistant U.S. Attorneys Helen Smith and Corey Shipley 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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Bristol Resident Sentenced to Serve 235 Months in Federal Prison for Child Pornography ProductionRead the Press Release
GREENEVILLE, Tenn. – On Oct. 26, 2016, David Earl Taylor, 50, of Bristol, Tenn., was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 235 months in federal prison. Taylor was also ordered to remain under supervised release by the U.S. Probation Office for the remainder of his life, to comply with special sex offender conditions of supervised release, to register with state sex offender registries, pay $100 special assessment, and pay restitution to the victim of his offense.
Taylor pleaded guilty in April 2016 to producing child pornography while he resided in Bristol, Tenn. According to the plea agreement on file with the U.S. District Court, Taylor used a minor to engage in sexually explicit conduct in order to produce child pornography in 2014.
Agencies involved in this investigation included the Bristol, Tennessee Police Department and Federal Bureau of Investigation. Helen Smith, Assistant U.S. Attorney 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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Knoxville Couple Sentenced for Tax Fraud and Money LaunderingRead the Press Release
KNOXVILLE, Tenn. – Bertha Del Pilar Vargas, 48, and her husband, Martin Ayala, 45, both of Knoxville, Tenn., were sentenced on Oct. 26, 2016, by the Honorable Thomas A. Varlan, Chief U.S. District Court Judge, for their participation in tax fraud and money laundering conspiracies. Vargas was sentenced to serve 34 months in federal prison. Ayala received a prison sentence of 37 months. Both were ordered to forfeit to the United States, more than $40,000 in currency seized by federal investigators and a money judgment of $2.4 million.
In June, 2016, Vargas and Ayala each pleaded guilty to conspiracy to defraud the United States through the submission of fraudulent federal income tax returns and conspiracy to commit money laundering. Their offenses were part of a scheme that involved the use of phony identification documents for the submission of fraudulent federal income tax returns in order to obtain refundable tax credits. The scheme resulted in the theft of more than $10.8 million from the U.S. taxpayers.
Agencies involved in this investigation included the Internal Revenue Service, Homeland Security Investigations, U.S. Postal Inspection Service, and Tennessee Highway Patrol Identity Crimes Unit. Assistant U.S. Attorneys Frank M. Dale, Jr. and Jennifer Kolman represented the United States.
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Former Walgreens Clinical Pharmacy Manager Pleads Guilty to $4.4 Million TennCare Fraud SchemeRead the Press Release
GREENEVILLE, Tenn. – On Oct. 25, 2016, Amber Reilly, 33, of Jonesborough, Tenn., pleaded guilty to one count of healthcare fraud contained in a federal information, before the Honorable J. Ronnie Greer, U.S. District Judge. Reilly was the former Clinical Pharmacy Manager at the Walgreens Specialty Pharmacy located in the Holston Valley Hospital in Kingsport, Tenn.
Sentencing has been set for Jan. 30, 2017. Reilly faces a potential sentence of up to 10 years in prison, a fine of up to $250,000, and supervised release of up to three years.
In a detailed plea agreement on file with the U.S District Court, Reilly admitted that between October 2014 and April 2016, she falsified prior authorizations, medical lab reports, and drug test results for at least 51 Hepatitis C patients who had prescriptions for the expensive Hepatitis C drugs of Sovaldi®, Harvoni®, Viekira Pak®, or Daklinza®. These patients had health insurance through TennCare, which does not pay for Hepatitis C prescriptions for patients who abuse illicit substances or who have limited or no scarring of the liver. The patient’s authentic medical lab reports and drug tests showed that they failed to meet TennCare eligibility requirements. However, Reilly admitted to replacing disqualifying information regarding levels of liver scarring and illicit substance abuse on the authentic records with qualifying information, and then submitting the altered records to TennCare. She also admitted to fabricating allergies on the prior authorization forms of some of these patients so they could receive the most expensive Hepatitis C drug, Harvoni®.
As a result of Reilly’s conduct, TennCare paid at least $4,400,000 to purchase Sovaldi®, Harvoni®, Viekira Pak®, and Daklinza® prescriptions for these 51 patients, which they would not have paid if true and accurate prior authorizations, drug test results, and medical lab reports pertaining to these patients had been submitted.
The investigation, which led to Reilly’s guilty plea, was conducted by the Tennessee Bureau of Investigation and Department of Health and Human Services – Office of the Inspector General. Assistant U.S. Attorney T.J. Harker represented the United States.
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Department of Justice and United States Attorney’s Office to Oversee November 2016 ElectionsRead the Press Release
KNOXVILLE, Tenn. - U.S. Attorney Nancy Stallard Harr announced today that Assistant U.S. Attorney (AUSA) Perry H. Piper will lead the efforts of her office in connection with the Justice Department’s nationwide Election Day Program for the upcoming Nov. 8, 2016, general elections. AUSA Piper has been appointed to serve as the District Election Officer (DEO) for the Eastern District of Tennessee, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
U.S. Attorney Harr said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice (Department) has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, U.S. Attorney Harr stated that AUSA/DEO Piper will be on duty in this District while the polls are open. He can be reached by the public at 423-385-1332.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at 865-544-0751.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
U.S. Attorney Harr said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my office, the FBI, or the Civil Rights Division.”
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Additional Individuals Charged for Their Roles in Operating “Pill Mills” in Knox and Loudon CountiesRead the Press Release
KNOXVILLE, Tenn. – On Oct. 4, 2016, a federal grand jury in Knoxville returned a 13-count superseding indictment against Sylvia Hofstetter, 52, of Knoxville, Tenn.; Richard Larson, 80, of Dandridge, Tenn.; Alan Pecorella, 67, of West Orange, N.J.; Theodore McCrary, 69, of Oak Ridge, Tenn.; Courtney Newman, 41, of Knoxville, Tenn.; and Cynthia Clemons, 44, of Knoxville, Tenn., for their roles in a conspiracy to distribute and dispense oxycodone, oxymorphone, and morphine outside the scope of professional practice and not for a legitimate medical purpose, maintenance of drug-involved premises, distribution of oxycodone resulting in death, and money laundering. Pecorella’s medical license was revoked in 2014 by the Tennessee Department of Health.
The superseding indictment 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 a quantity of oxycodone, oxymorphone, and morphine sufficient to generate clinic revenue of at least $17.5M.
If convicted, those charged in the indictment could be imprisoned from 20 years to life and ordered to pay fines up to $1,000,000.
This superseding indictment is the result of an investigation by the FBI High Intensity Drug Trafficking Area (HIDTA), comprised of investigators assigned to the task force by the Loudon County Sheriff’s Office, Knoxville Police Department, Blount County Sheriff’s Office, Roane County Sheriff’s Office, Harriman Police Department, and Clinton Police Department. The Tennessee Department of Health and the Drug Enforcement Administration’s Knoxville Diversion Group also assisted in the investigation.
Assistant U.S. Attorneys Tracy L. Stone, Caryn Hebets, and Anne-Marie Svolto represent the United States in the prosecution of these cases.
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 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. In the Eastern District of Tennessee, HIDTA funds DEA and FBI led drug task forces in Johnson City, Knoxville, and Chattanooga, as well other initiatives to reduce drug crime in the HIDTA. For more information please visit www.whitehouse.gov/ondcp/high-intensity-drug-trafficking-areas-program .
The investigation is also part 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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Knoxville Resident Sentenced to Serve 37 Months in Prison for Tax Fraud and Money LaunderingRead the Press Release
KNOXVILLE, Tenn. – Mayra Edith Blair, 41, of Knoxville, Tenn., was sentenced on Oct. 12, 2016, by the Honorable Thomas A. Varlan, Chief U.S. District Court Judge, to serve 37 months in federal prison. Blair was also ordered to forfeit a money judgment in the amount of $2.5 million to the United States.
In May 2016, Blair pleaded guilty to conspiracy to defraud the United States through the submission of fraudulent federal income tax returns and conspiracy to commit money laundering. Blair’s offenses were part of a scheme that involved the use of phony identification documents for the submission of fraudulent federal income tax returns in order to obtain refundable tax credits. The scheme resulted in the theft of more than $10.8 million from the U.S. taxpayers.
Agencies involved in this investigation included the Internal Revenue Service-Criminal Investigation, Homeland Security Investigations, U.S. Postal Inspection Service, and Tennessee Highway Patrol Identity Crimes Unit. Assistant U.S. Attorneys Frank M. Dale, Jr., and Jennifer Kolman represented the United States.
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Benjamin Joseph Shook Sentenced to Serve Life in Federal Prison for Federal Crimes Including Kidnapping Fourteen-Year Old GirlRead the Press Release
GREENEVILLE, Tenn. – Benjamin Joseph Shook, 43, originally of Hall County, Ga., was sentenced on Oct. 6, 2016 by the Honorable R. Leon Jordan, U.S. District Court Judge, to serve life plus five years in federal prison.
Shook pleaded guilty in June 2016 to five federal crimes, including kidnapping, using a means of interstate commerce to entice a minor to engage in illegal sexual activity, transporting a minor in interstate commerce for illegal sexual activity, traveling interstate to engage in illegal sexual activity, and failing to register as required by the Sex Offender Registration and Notification Act while traveling interstate.
During the summer of 2015, Shook, who was recently released from Georgia prison for prior sex offenses, convinced a 14-year-old girl residing in Surgoinsville, Tenn., to drive a truck and meet him in Morristown, Tenn. Shook drove the truck from Morristown to North Carolina and then to Virginia. After a nationwide Amber Alert and search, he and the minor victim were found in rural Smyth County, Va. The victim was returned safely to her family.
Nancy Stallard Harr, U.S. Attorney for the Eastern District of Tennessee noted the commitment of the U.S. Attorney’s office to the safety of children and the extensive collaborative effort which resulted in Shook’s arrest and life sentence. “This positive outcome would not have been possible without assistance from the public and the media together with the joint effort of more than 15 law enforcement agencies. Nearly 200 law enforcement officers worked around the clock over a three-state area for 14 days to rescue this minor female victim from a convicted child sex predator,” said U.S. Attorney Harr.
Agencies involved in this investigation included: the Surgoinsville Police Department; Hawkins County Sheriff’s Office; Tennessee Bureau of Investigation; U.S. Marshals Service; Federal Bureau of Investigation; National Center for Missing and Exploited Children; Virginia State Police; Tennessee Highway Patrol; U.S. Forrest Service; Virginia Department of Game and Inland Fisheries; Carroll, Smyth, Washington, and Wythe County Sheriff’s Offices in Virginia; and Damascus, Virginia Police Department. Assistant U.S. Attorney Helen Smith represented the United States.
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Chattanooga Police Department Recognized in Newly Released Justice Department and Equal Employment Opportunity Commission Advancing Diversity in Law Enforcement ReportRead the Press Release
CHATTANOOGA, Tenn. – The Justice Department and the Equal Employment Opportunity Commission (EEOC) released a comprehensive report today that examines barriers and promising practices – in recruitment, hiring and retention – for advancing diversity in law enforcement. The report, developed with support from the Center for Policing Equity, aims to provide law enforcement agencies, especially small and mid-size agencies, with a resource to enhance the diversity of their workforce by highlighting specific strategies and efforts in place in police departments around the country.
The Chattanooga Police Department was recognized for its retention efforts, using community partnerships and stakeholder engagement to help retain officers of color and women by better understanding the unique challenges they face in the profession. By partnering with stakeholders outside of the agency just as they do in recruitment, law enforcement agencies can diagnose the barriers in their practices, policies, or systems that too often prevent or discourage officers from staying on the job. Such partnerships allow the agency to take a holistic and comprehensive approach to diversity, often drawing connections and replicating outreach efforts in retention that they use in recruitment. By demonstrating that the law enforcement agency is invested in, and connected with the community, it can help improve public trust and allow officers to view their jobs as a meaningful and honorable long-term career.
The Chattanooga Police Department uses its Recruiting, Engagement, Selection, Transfer, Assignment, and Retention Team (RESTART) to bring together community members, academics, officers, command staff, union officials, and human resource professionals to “ensure equity and aggressively support diversity” in a range of practices, including those related to retention, assignment, and transfer practices. Through this effort, the department is currently in the process of reforming its promotion standards.
The department and EEOC engaged with dozens of law enforcement leaders, officials and officers; researchers; civil rights advocates and other experts to produce the report. The report, which builds on the recommendations of the President’s Task Force on 21st Century Policing, notes that while greater workforce diversity alone cannot ensure fair and effective policing, a significant – and growing – body of evidence suggests that diversity can make policing more effective, more safe and more just. For example, among other benefits, increasing diversity can improve relations with the communities the agencies serve, address language barriers to serve all residents, make agencies more open to reform and potentially reduce racial bias.
The promising practices highlighted in this report vary considerably. The report demonstrates, however, that successful diversity-building efforts by law enforcement agencies share several common themes, including:
- ensuring that the agency’s organizational culture is guided by community policing, procedural justice and cultural inclusivity;
- engaging stakeholders – both from within and outside the law enforcement agency – to help create a workforce that reflects the diversity of the community; and
- being willing to re-evaluate employment criteria, standards and benchmarks to ensure that they are tailored to the skills needed to perform job functions and consequently attract, select and retain the most qualified and desirable sworn officers.
The entire report is available through the following link: www.justice.gov/crt/case-document/file/900761/download.
From October to December, the department and the EEOC will continue engaging with law enforcement by partnering with U.S. Attorneys around the country to host “Diversity Dialogues” in Madison, Wisconsin; Savannah, Georgia; and San Francisco. These sessions will facilitate working-group discussions with local law enforcement agencies about how to address the barriers and implement the promising practices outlined in the report. Members of law enforcement who would like to learn more about the Advancing Diversity in Law Enforcement initiative or the Diversity Dialogues, should email [email protected].
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October 2-8, 2016 Designated as National Community Policing WeekRead the Press Release
KNOXVILLE, Tenn. –President Obama has designated the week of Oct. 2-8, 2016, as National Community Policing Week. As part of the Obama Administration's commitment to building stronger relationships between law enforcement and the communities they serve, the Department of Justice will participate in events in support of community policing efforts around the country.
The week is also an extension of the Attorney General’s 12-city Community Policing Tour that highlighted collaborative programs and policing practices designed to advance public safety, strengthen police-community relations, and foster mutual trust and respect between law enforcement and citizens. National Community Policing Week builds on President Obama’s efforts to engage with law enforcement and other members of the community to implement key recommendations from the 21st Century Policing Task Force report.
Community policing is a public safety philosophy based on partnership and cooperation between law enforcement and the communities that they are sworn to protect. At the center of community policing is the idea that all members of the community, both officer and civilian, have a stake in the safety of their neighborhoods where they live and work.
Along with President Obama and Attorney General Lynch, the U.S. Attorney’s Office for the Eastern District of Tennessee is committed to doing its part to support law enforcement and the residents of its communities. U.S. Attorney Nancy Stallard Harr is encouraging local law enforcement to work with federal, state and other local police partners, community organizations, and stakeholders to hold appropriate events and engagement activities not only throughout National Community Policing Week, but on a regular basis. “These collective efforts and participation will ensure the continuation of the critical work being done across the country to make neighborhoods safer, stronger, and more united,” stated U.S. Attorney Harr.
Recently the U.S. Attorney’s office was notified of a number of federal grants which were awarded to local law enforcement and other agencies across east Tennessee to aide them in their efforts to protect and keep our communities safe. Highlights of these grant awards include:
COPS HIRING PROGRAM (CHP)
- Hamilton County Sheriff - $175,000
CHP grants provide matching funding awards to 184 law enforcement agencies across the nation, aimed at creating, or in some cases protecting, more than 900 law enforcement positions. CHP provides funding directly to state, local and tribal law enforcement agencies for the hiring and rehiring of entry-level career law enforcement officers in an effort to create and preserve jobs and increase community policing capacity and crime prevention efforts.
FY16 EDWARD BYRNE MEMORIAL ASSISTANCE GRANT (JAG) PROGRAM
- Blount County - $20,161
- City of Cleveland - $39,340
- Cocke County - $10,398
- City of Chattanooga - $138,816
- City of East Ridge - $11,084
- City of Johnson City - $31,122
- City of Kingsport - $22,193
- City of Knoxville (to share with Knox County) - $153,452
- City of Morristown - $13,098
- Sullivan County - $23,069
The JAG program allows states and units of government, including Indian tribes, to support a broad range of activities to prevent and control crime based on their own state and local needs and conditions. Grant funds can be used for state and local initiatives, technical assistance, training, personnel, equipment, supplies, contractual support, and information systems for criminal justice, including for any one of more of the following program areas: 1) law enforcement programs; 2) prosecution and court programs; 3) prevention and education programs; 4) corrections and community corrections programs; 5) drug treatment and enforcement programs; 6) planning, evaluation, and technology improvement programs; and 7) crime victim and witness programs.
FY 16 ADULT DRUG COURT DISCRETIONARY GRANT PROGRAM
- Morgan County - $300,000
- Sevier County - $300,000
The purpose of the Adult Drug Court Discretionary Grant Program is to provide financial and technical assistance to states, state courts, local courts, units of local government, and Indian tribal governments to develop and implement drug courts that effectively integrate evidence-based substance abuse treatment, mandatory drug testing, sanctions and incentives, and transitional services in a judicially supervised court setting with jurisdiction over substance abuse offenders.
FY16 BODY-WORN CAMERA (BWC) POLICY AND IMPLEMENTATION PROGRAM: IMPLEMENTATION OR EXPANSION OF BWC PROGRAMS FOR LARGE AGENCIES
- City of Chattanooga - $299,992
- City of Morristown - $42,500
The BWC Policy and Implementation Program supports the implementation of body-worn camera programs in law enforcement agencies across the country. The intent of the program is to help agencies develop, implement, and evaluate a BWC program as one tool in a law enforcement agency’s comprehensive problem solving approach to enhance officer interactions with the public and build community trust. Elements of such an approach include: implementation of a BWC program developed in a planned and phased approach; collaboration that leverages partnerships with cross-agency criminal justice stakeholders including prosecutors and advocacy organizations; implementation of appropriate privacy policies; implementation of operational procedures and tracking mechanisms; training of officers, administrators, and associated agencies requiring access to digital multimedia evidence; and adoption of practices and deployment of BWC programs appropriately addressing operational requirements.
IMPROVING CRIMINAL JUSTICE RESPONSE PROGRAM
- Partnership for Families, Children and Adults, Incorporated, Chattanooga - $442,343
The Improving Criminal Justice Response Program implements certain provisions of the Violence Against Women Act (VAWA) which enhances victim safety and offender accountability in cases of sexual assault, domestic violence, dating violence, and stalking by encouraging jurisdictions to implement pro-arrest policies as an effective intervention that is part of a coordinated community response. An integral component of this program is the creation and enhancement of collaborative partnerships between criminal justice agencies, victim services providers, and community organizations which respond to sexual assault, domestic violence, dating violence and stalking.
FY16 INTERNET CRIMES AGAINST CHILDREN TASK FORCE (ICAC)
- City of Knoxville - $381,931
The National Internet Crimes Against Children (ICAC) Task Force consists of state and local law enforcement task forces dedicated to developing effective responses to online enticement of children by sexual predators, child exploitation, and child obscenity and pornography cases.
FY 16 MENTORING OPPORTUNITIES FOR YOUTH INITIATIVE
Knoxville Leadership Foundation - $1,250,000
The Knoxville Area Mentoring Initiative (KAMI) is a collaborative mentoring project built on the resources of the strongest mentoring organizations in east Tennessee. KAMI is led by Knoxville Leadership Foundation through their program Amanchi Knoxville, and with partners Emerald Youth Foundation, Big Brothers Big Sisters of East Tennessee, Joy of Music School and Girls on the Run.
The Mentoring Opportunities for Youth Initiative provides funding to support organizations that form a collaborative of at least three and as many as five mentoring organizations in their efforts to strengthen and/or expand their existing mentoring programs to reduce juvenile delinquency, drug abuse, truancy, and other problem and high-risk behaviors. FY 2016 funding addresses the factors that can lead to or serve as a catalyst for delinquency or other problem behaviors for at-risk and high-risk youth.
TRANSITIONAL HOUSING GRANT ASSISTANCE PROGRAM
- Helen Ross McNabb Center, Incorporated - $350,000
The primary purpose of the Transitional Housing Assistance Program is to provide aid to victims of sexual assault, domestic violence, dating violence, and stalking who are homeless, or in need of transitional housing or other housing assistance, including short-term housing assistance and supportive services; and for whom emergency shelter services or other crisis intervention services are unavailable or insufficient. The program also focuses on supporting a holistic, victim-centered approach to provide transitional housing services that move individuals into permanent housing. It is critical that successful transitional housing programs provide a wide range of flexible and optional services that reflect the differences and individual needs of victims and that allow victims to choose the course of action that is best for them.
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North Carolina Couple Sentenced for Government Contract FraudRead the Press Release
GREENEVILLE, Tenn. – On Oct. 3, 2016, Ricky Anthony Lanier, 49, and his wife Katrina Reshina Lanier, 43, both of LaGrange, N.C., were sentenced to serve federal prison terms of 48 months and 30 months, respectively, for conspiracy to commit wire fraud, wire fraud, and major fraud against the United States. The couple were found guilty of these offenses on Dec. 17, 2015, following a 13-day jury trial in U.S. District Court.
According to evidence presented at trial, the Laniers conspired from November 2005 to April 2013 to defraud the United States government through a scheme to fraudulently obtain federal contracts intended to be awarded to businesses lawfully participating in the Department of Veterans Affairs’ (VA) Service-Disabled Veteran-Owned Small Business (SDVOSB) program and the Small Business Administration’s (SBA) 8(a) Business Development program. They falsely represented that JMR Investments was eligible as an 8(a) business and Kylee Construction was eligible as an SDVOSB and an 8(a) business.
Ricky Lanier, who had previously owned and operated an 8(a) business receiving government contracts, became ineligible to participate in the 8(a) program after that business graduated from that program in 2008. Lanier used a friend and service-disabled veteran as the purported owner of Kylee Construction, representing that the friend was involved in the daily management of the business, even while the friend was working for a government contractor in Afghanistan. The Laniers used a business owned by Ricky Lanier’s college roommate, JMR Investments, as a front to obtain construction contracts from the National Park Service and other federal agencies under the 8(a) program, misrepresenting the friend’s involvement in the management and operation of the business. The scheme also involved sub-contracting out all or almost all of the work on the contracts in violation of program requirements.
Ricky Lanier also defrauded the National Park Service in connection with a contract to replace a wastewater treatment facility at the Tremont Institute in the Great Smoky Mountains National Park, falsely representing subcontractor costs by over $400,000, resulting in the award of a $1.1 million contract for work on the project that was actually performed by a subcontractor for only $550,000. Lanier also fraudulently obtained a $1.3 million construction contract at the James H. Quillen VA Medical Center which had been set aside for SDVOSBs.
As a result of the false representations, Kylee Construction was awarded over $5 million in government contracts and JMR Investments was awarded over $9 million in government contracts. The Laniers received almost $2 million in financial benefit from the scheme, using accounts of the shell companies for payment of personal expenses.
Law enforcement agencies participating in the joint investigation which led to indictment and subsequent conviction of Ricky and Katrina Lanier included the VA-Office of Inspector General (OIG), SBA- OIG; and Department of the Interior, OIG, with assistance from the U.S. Secret Service. Former Assistant U.S. Attorney Neil Smith and Assistant U.S. Attorney David L. Gunn represented the United States.
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Former Nurse Practitioner Sentenced for Unlawfully Distributing and Dispensing OxycodoneRead the Press Release
GREENEVILLE, Tenn. - On Sept. 28, 2016, Sherry L. Barnett, 47, of Jonesborough, Tenn., was sentenced to serve two years in federal prison for conspiring to unlawfully distribute and dispense oxycodone.
Barnett, who was a licensed nurse practitioner, pleaded guilty in February 2016 to conspiring with Rocky Wayne Hendrix, Robert Randal Stanton II, and others, to unlawfully distribute oxycodone from October 2011 through August 2014. Barnett owned and operated Resolutions HealthCare, PLLC in Johnson City, Tenn., from which she issued unlawful prescriptions to Hendrix, Stanton, and other patients without proper medical examinations and for no legitimate medical purpose. Hendrix recruited friends, family members, and employees at his business, Rocky’s Pizza, to become new patients of Barnett in order to obtain additional unlawful prescriptions. According to documents on file with the U.S. District Court, during the course of the conspiracy over 60,000 pills were illegally dispensed and distributed.
All three charged in the indictment have now been sentenced. In April 2016, Stanton was sentenced to 60 months in prison. In July 2016, Hendrix was sentenced to 78 months.
The investigation was conducted by the Tennessee Bureau of Investigation. Assistant U.S. Attorney David Gunn represented the United States.
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U.S. Attorney’s Office for the Eastern District of Tennessee Supports National Heroin and Opioid Awareness WeekRead the Press Release
KNOXVILLE, Tenn. - Attorney General Loretta Lynch has designated the week of September 19, 2016, as National Heroin and Opioid Awareness Week. Accordingly, a large number of U.S. Attorney’s offices, including the Eastern District of Tennessee, are joining with federal law enforcement, engaging local community partners, and collaborating with medical professionals and public health officials, to help combat this growing epidemic.
On August 2, 2016, the U.S. Attorney’s Office sponsored an Education and Prevention Summit to Combat Opioid Addiction in East Tennessee at the Bijou Theater in downtown Knoxville. Participants included representatives from the Appalachia High Intensity Drug Trafficking Area, Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), Knoxville City Mayor’s Office, Knox County Medical Examiner, Knoxville Police Department, Knox County District Attorney’s Office, Metro Drug Coalition, Tennessee Bureau of Investigation (TBI), and TBI Tennessee Dangerous Drug Task Force. The diverse group of attendees included medical professionals, pharmacists, health insurance providers, local, state and federal law enforcement and prosecutors, service providers, educational professionals and other local, state and federal officials.
In addition to panel discussions on the opioid addiction problems in east Tennessee and the law enforcement legislative and prosecutorial efforts to combat this growing problem, the summit highlighted the recent documentary Chasing the Dragon: The Life of an Opiate Addict, which was produced by the FBI and DEA to help educate students and young adults about the dangers of opioid addiction. The 45-minute film, whose title refers to the never-ending pursuit of the original or ultimate high, features stark first-person accounts told by individuals who have abused opioids or whose children have abused opioids, with tragic consequences.
By viewing the documentary and participating in the after-discussions, attendees of the east Tennessee summit now have the knowledge and ability to act as messengers within the entire district to promote the documentary to school officials and suggest joint events for students, parents and educators at which it is featured and discussed.
To further encourage this effort, the documentary was also shared with local, state and federal law enforcement at the recent 2016 Intelligence Analysis Sharing: A Candid Look at Community Policing and DOJ Smart on Crime Initiative for the Eastern District of Tennessee, held in Gatlinburg, August 8-9, 2016. Additionally, staff members of the U.S. Attorney’s Office were invited to bring their families for an airing and discussion of the documentary during an upcoming district-wide office training event.
The video, Chasing the Dragon: The Life of an Opiate Addict, can be found on either the FBI or DEA websites using the following links: https://www.fbi.gov/news/stories/raising-awareness-of-opioid-addiction or https://www.dea.gov/media/chasing-dragon.shtml.
During recently held discussions, law enforcement representatives across the district agreed that the rise of heroin use and the abuse of prescription opioids in the United States is currently our biggest challenge to public health and safety. It threatens communities, families, and children. Talking points provided by the Department of Justice, which are attached to this release, provide additional confirmation of the heroin, fentanyl, and prescription drug problems in the United States.
Now is the time for the public, law enforcement, medical professionals, law enforcement and service providers and other community leaders to work together to halt this growing epidemic. Only through action can awareness of the dangers posed by the consumption of prescription opioids, and a growing trend of heroin and fentanyl use be raised.
U.S. Attorney Nancy Stallard Harr is committed to holding those responsible who are poisoning our communities with these highly addictive drugs. “The U.S. Attorney’s Office will continue to work together with law enforcement to prosecute federal offenses relating to the unlawful distribution of heroin, fentanyl, and prescription opioids,” stated U.S. Attorney Harr. She further added, “We will also work with local, state and federal leaders to help educate the public regarding he dangers involved with the improper use and abuse of these powerful substances.”
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Five Indicted for Fraud Against the U.S. Government and Other Purchasers in “Made in the USA” Marketing SchemeRead the Press Release
GREENEVILLE, Tenn. – On Sept. 13, 2016, a federal grand jury in Greeneville returned an indictment against Vincent Lee Ferguson, 65, of Knoxville, Tenn.; Matthew Lee Ferguson, 40, of Lenoir City, Tenn.; Kerry Joseph Ferguson, 35, of Houston, Texas; Matthew Harrison Martland, 32, of Knoxville, Tenn.; and Stephanie Lynn Kaemmerer, 44, of Knoxville, Tenn., for wire fraud, conspiracy to commit wire fraud, major fraud against the United States, and smuggling goods into the United States.
These individuals appeared in court on Sept. 15, 2016 before U.S. Magistrate Judge Clifton Corker and pleaded not guilty. All were released on bond pending trial, which has been set for Nov. 1, 2016, in U.S. District Court, in Greeneville.
If convicted, they all face a term of 20 years in prison as to each wire fraud charge and smuggling charge, and up to 10 years in prison for the charge of major fraud against the United States. Additionally, they face fines of up to $250,000 and up to three years of supervised release as to each count. The indictment also seeks forfeiture of approximately $8.1 million.
Details of this conspiracy are included in the indictment on file with the U.S. District Court, which alleges that these individuals, all of whom were executives and management at Wellco Enterprises, Inc., conspired from December 2008 through August 2012 to defraud the United States government and other purchasers through a scheme to fraudulently import military-style boots that were made in China into the United States and then deceptively market and sell those boots to the United States Armed Forces, government contractors, and the general public as “Made in the USA,” and as compliant with certain domestic content preference laws, including the Trade Agreements Act and the Berry Amendment.
This indictment is the result of an investigation by Homeland Security Investigations, the Defense Criminal Investigative Service, Air Force Office of Special Investigation, General Services Administration Office of Inspector General, and the Defense Contracts Audit Agency. Assistant U.S. Attorney David L. Gunn 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/her guilt has been proven beyond a reasonable doubt.
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U.S. Attorney’s Office and U.S. Marshals Service Warn of Jury Duty Phone Scam in Chattanooga AreaRead the Press Release
CHATTANOOGA, Tenn. – Chattanooga area residents are being targeted by phone calls regarding failure to report for jury duty from a person claiming to be from the U.S. Marshal Service. The scam involves an individual contacting the victim, telling him/her that he/she has missed federal jury duty, and demanding the victim pay a fine to avoid being arrested.
Often, to make the scheme believable, victims are provided with factual information such as the title and badge number of a law enforcement officer or court official, the name of a federal judge, and the courthouse address. They are also using technology to mask their phone number on caller ID and make it appear as if the call is actually coming from the court or a government agency. This tactic is called “spoofing” and has become very common with scammers nationwide. In some cases, the scammer may carry the scheme out via email with an official looking email address.
If you receive a jury duty related call or email, do not provide any personal information or send money. The U.S. Marshal Service does not call or email prospective jurors or ask for money or personal information and they never serve an arrest warrant by phone. Real, valid arrest warrants are always served in person. They also do not demand the payment of money in lieu of arrest, nor accept payment via prepaid card.
Anyone receiving one of these calls or emails should report it report it immediately to their local U.S. Marshals Service, 423-752-5115 or the FBI, https://tips.fbi.gov. If available, please have the caller ID or email address information of the scammer when you call.
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Joshua Leroy Cooper Sentenced to Serve 140 Months in Prison for Federal Firearms OffensesRead the Press Release
KNOXVILLE, Tenn. – Joshua Leroy Cooper, 32, of Knoxville, Tenn., was sentenced on Aug. 29, 2016, by the Honorable Thomas W. Phillips, U.S. District Court Judge, to serve 140 months in federal prison.
Cooper pleaded guilty in April 2016 to possessing firearms and ammunition as a previously convicted felon. The firearms were discovered as a result of a search warrant executed at Cooper’s residence by the Knoxville Police Department because of narcotics purchases at his home. One of the recovered firearms had been reported stolen. Cooper was previously convicted of aggravated robbery, aggravated assault, and aggravated child abuse and neglect of a child six years or less, making it illegal for him to possess firearms or ammunition. In addition to the federal charges, charges related to this investigation are also pending against Cooper in Knox County Criminal Court.
Agencies involved in this investigation included the Knoxville Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Jennifer Kolman, Assistant U.S. Attorney 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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Remarks from United States Attorney Nancy Harr on the Recent Officer Shooting Deaths in TennesseeRead the Press Release
KNOXVILLE, Tenn. – Earlier this month TBI Special Agent De’Greaun Frazier was murdered while performing his duty to serve and protect the public. Thursday afternoon, tragedy again struck our state when Maryville Police Officer Kenny Moats was shot and killed while responding to a call for help.
Words alone cannot express the bravery of these professionals or the loss to their families and the communities they served. During this difficult time, as the law enforcement community gathers to mourn and support the families of these officers, we hope that the residents of east Tennessee will take this time to support law enforcement and show them that they are a valuable asset to our communities. We at the U.S. Attorney’s Office see the dedication and sacrifice of the men and women in law enforcement on a daily basis and will continue to do our best to support them.
On behalf of the employees of the U.S. Attorney’s Office for the Eastern District of Tennessee, I would like to say a heartfelt “THANK YOU” … a phrase most officers don’t hear enough.
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