Eastern District of Tennessee
Press releases recorded for this federal judicial district.
California Resident Sentenced to Serve over 10 Years in Federal Prison for Methamphetamine ConspiracyRead the Press Release
GREENEVILLE, Tenn. – On Aug. 17, 2016, Luis A. Rivera Gutierrez, 30, of Sylmar, Cal., was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 240 months in federal prison following a conviction for his leadership role in a conspiracy to distribute methamphetamine from California to Tennessee.
According to his plea agreement on file with U.S. District Court, Gutierrez admitted to engaging in a series of recorded telephone calls with an individual working on behalf of law enforcement (individual) during June and July 2015. In these recorded calls, Gutierrez agreed to send a multi-kilogram delivery of methamphetamine from California to east Tennessee. In July 2015, co-defendant Eudave-Castaneda, a.k.a. Seven, 27, of Lancaster, Cal., agreed to transport this multi-kilogram shipment of methamphetamine for Gutierrez and others to the individual in Tennessee. Eudave-Castaneda had made a previous delivery of methamphetamine for Gutierrez and others in May 2015. In a recorded call in July 2015, Gutierrez told the individual that Seven would be bringing 2.5 kilograms of methamphetamine and the quantity would be doubled the next time. On his way to Morristown, Eudave-Castaneda stopped for the night in Roane County, Tenn. He gave consent to search his vehicle and law enforcement agents located approximately seven pounds of methamphetamine hidden in the rocker panels of the vehicle. Laboratory testing showed that the methamphetamine was 97.5 percent pure.
In subsequent communications, Gutierrez told the individual that he would personally deliver the methamphetamine next time and they negotiated a ten-pound transaction. In September 2015, Gutierrez told the individual that he was driving through Kansas and should arrive in a day or two. The individual, acting at the direction of law enforcement agents, sent Gutierrez an address in Newport, Tenn., to meet and discuss the payment for the methamphetamine. Gutierrez told the source that the methamphetamine was in another tractor trailer and would arrive separately.
Upon arriving in Newport, Gutierrez became lost and suspicious that he was being followed by law enforcement. As a result, he entered I-40 where a chase by numerous police vehicles, at approximately 100 mph in rainy conditions ensued for several miles before a Tennessee Highway Patrol officer caught up and pulled him over. While driving at such high speeds on I-40, Gutierrez tossed his cell phone out the window. After being placed under arrest, a search of his vehicle revealed a note with the address to the residence in Newport given by law enforcement agents. The following day a tractor trailer with a registration out of Sylmar, Cal., was stopped on I-40 westbound near Memphis, Tenn. A subsequent search of the trailer resulted in the seizure of well in over ten pounds of methamphetamine. Laboratory testing showed that the methamphetamine was 99.7 percent pure.
Gutierrez stipulated that between May and October 2015 he was accountable for the distribution of approximately 17 pounds of methamphetamine. After being taken to jail, he made a number of recorded phone calls to his wife in California telling her to destroy certain items in California.
Law enforcement agencies participating in the investigation included the Drug Enforcement Administration, Tennessee Bureau of Investigation, Tennessee Highway Patrol, Cocke County Sheriff’s Office, and Morristown, Tennessee Police Department. Assistant U.S. Attorney Wayne Taylor represented the United States.
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Surgoinsville Resident Sentenced to Thirty Years in Federal Prison for Drug Trafficking, Firearm and Witness IntimidationRead the Press Release
GREENEVILLE, Tenn. – On Aug. 19, 2016, Gregory Harold Moore (Moore), 47, of Surgoinsville, Tenn., was sentenced by the Honorable R. Leon Jordan, U.S. District Court Judge, to serve 360 months in federal prison following his convictions for conspiracies to distribute methamphetamine, hydrocodone, oxycodone and oxymorphone, as well as conspiracy to threaten bodily injury to a person in retaliation for suspected cooperation with law enforcement and engaging in intimidating and threatening conduct with the intent to influence or prevent testimony in an official proceeding and possession of a firearm in furtherance of a drug trafficking offense.
According to his plea agreement on file with U.S. District Court, Moore admitted that between May 2015 and August 2015 he sold an approximate total of two ounces of methamphetamine, spread out over four separate occasions, to an individual working with law enforcement. In August 2015, Moore told this individual that he could provide him/her with three ounces of methamphetamine the next time they met (and currently had two ounces of methamphetamine). A federal search warrant was executed at Moore’s Surgoinsville residence during which law enforcement agents found approximately 48 firearms, over $24,000.00 in cash, approximately 190 hydrocodone pills and a silencer. Moore was arrested and taken to jail on the same day.
While incarcerated on these charges, Moore engaged in a significant number of telephone calls, which were recorded on the jail system. During these recorded phone calls, he directed others, including co-defendants, Pamela Moore, 47, of Surgoinsville, Tenn., David Allen Davis, 47, of Church Hill, Tenn., and Kathy Denice Jones, 50, also of Church Hill, Tenn., to collect pain pills and methamphetamine that were not located during the search of his residence in order to hide them from the police and be sold to raise profit and/or to collect other drug debts for Moore while he was in jail. Additionally, Moore told his wife, Pamela Moore to spread the word as to the identity of the person he believed was working with law enforcement and get another co-defendant Donnie Dwayne Wallen, 38, of Church Hill, Tenn., to cause bodily injury to that person for cooperating against Moore. In particular, Moore wanted Wallen to “beat his brains out,” and “beat the brakes off” the individual because he/she was a “narc” and a “snitch.”
During another recorded jail call between Moore and Jones, Moore estimated that there was over $30,000 worth of pills hidden at his residence. He told Jones that the police only found a little over $20,000 in cash during the search because he had invested the rest in drugs. Law enforcement agents returned to Moore’s residence and continued their search, locating 355 oxymorphone pills, 357 oxycodone pills and 7.4 ounces of methamphetamine which had been hidden by Moore. In a subsequent recorded meeting, Davis told Pamela Moore that the value of all of the drugs seized by the police was likely at least $50,000.
Davis, Jones and Wallen all met at Jones’ residence in Church Hill to discuss Moore’s directions. During the meeting, Jones stated that Wallen was “prepared to go ahead and beat the h*** out of the guy, you know leave him for dead” but just wanted to make sure it was the right person. Wallen stated that he was going to collect $1,000.00 for Moore from the source and that if he/she didn’t pay, he would break his/her legs. Wallen stated that he couldn’t “beat the h***” out of the individual and then expect him to pay the $1,000.00, unless he/she had it on them and he could just take it, “and most people don’t carry $1,000.00 on them unless they are Greg Moore.” Wallen and Jones were previously sentenced to 66 months and 41 months respectively for their roles in the relevant conspiracies. Both Pamela Moore and Davis have sentencing hearings scheduled in U.S. District Court within the next few months.
U.S. Attorney Nancy Stallard Harr stated, “The safety and security of witnesses involved in the criminal cases is paramount. There are few cases that this office takes more seriously than witness intimidation or retaliation as such crimes tear at the very fabric of the criminal justice system. We believe that this sentence on Gregory Harold Moore illustrates these intimidation type tactics simply cannot be tolerated in the criminal justice system.” U.S. Attorney Harr added, “These law enforcement agencies worked closely together to halt the destruction of lives in Hawkins County from illegal drug use and addiction directly attributable to violent drug dealers such as Moore.”
Law enforcement agencies participating in the investigation included the Federal Bureau of Investigation Morristown Rocky Top Task Force, Third District Judicial Drug Task Force, Hawkins County Sheriff’s Office, Hamblen County Sheriff’s Office, and Appalachian High Intensity Drug Task Force. Assistant U.S. Attorney Wayne Taylor represented the United States.
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Jury Convicts Joseph E. Armstrong of Filing A False Tax ReturnRead the Press Release
KNOXVILLE, Tenn. - Following a four-day trial in U.S. District Court, Knoxville, Tenn., on Aug. 8, 2016, a jury convicted Joseph E. Armstrong, 59, of Knoxville, Tenn., of filing a false tax return.
Sentencing is set for 10:00 a.m., on Nov. 30, 2016, in U.S. District Court in Knoxville, Tenn. Armstrong faces a possible sentence of up three years in prison, a term of supervised release of not more than one year, a fine of up to $250,000, a special assessment of $100, and restitution.
According to evidence presented at trial Mr. Armstrong filed his federal income tax returns for the year 2008 and failed to disclose in those returns that he engaged in an investment activity from which he derived over $300,000 in income. Although Armstrong knew that he was required by law to disclose the income of this investment activity, he willfully failed to do so.
Law enforcement agencies participating in the joint investigation which led to indictment and subsequent conviction of Armstrong included the IRS-Criminal Investigation Division and the Federal Bureau of Investigation. Assistant U.S. Attorneys Charles E. Atchley, Jr. and Frank M. Dale, Jr. represented the United States.
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Second of Three Charged in Oxycodone Distribution Conspiracy Sentenced to Serve over Six Years in Federal PrisonRead the Press Release
GREENEVILLE, Tenn. - On July 27, 2016, Rocky Wayne Hendrix, 48, of Johnson City, Tenn., was sentenced to serve 78 months in federal prison for conspiring to unlawfully distribute and dispense oxycodone.
Hendrix pleaded guilty in February 2016 to conspiring with Sherry L. Barnett, who was a licensed nurse practitioner, 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 pleaded guilty. In April 2016, Stanton was sentenced to 60 months in prison. Barnett is scheduled for the final sentencing on September 28, 2016.
U.S. Attorney Nancy S. Harr praised the hard work of law enforcement in this extensive investigation, stating “Oxycodone is a highly addictive prescription medication, and the U.S. Attorney’s Office takes cases involving its unlawful distribution very seriously. We will continue to work together with the TBI and other law enforcement agencies to prosecute these types of offenses.”
The investigation was conducted by the Tennessee Bureau of Investigation. Assistant U.S. Attorneys David Gunn and Donald Wayne Taylor represented the United States.
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Coffee County Man Sentenced to Serve 262 Months in PrisonRead the Press Release
CHATTANOOGA, Tenn. – On July 20, 2016, Brian Lee Fielding, a.k.a. “Bull”, 35, of Coffee County, Tenn., was sentenced to serve 262 months in prison by the Honorable Curtis L. Collier, U.S. District Judge.
Fielding pleaded guilty in March 2016 to a federal indictment charging him with, among other things, conspiracy to distribute and possess with the intent to distribute 50 grams or more of methamphetamine (actual) and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine.
Information on file with the U.S. District Court, shows that Fielding conspired with others to distribute and possess with the intent to distribute methamphetamine in the Eastern District of Tennessee and elsewhere from January 2015 until at least September 2015. His role in the conspiracy was to obtain methamphetamine for others to distribute in furtherance of the conspiracy. As part of his plea agreement, Fielding admitted that he personally distributed one kilogram of methamphetamine (actual) in furtherance of the conspiracy.
Fielding was classified as a “career offender” under federal law because he had two prior drug trafficking convictions, including a 2009 conviction for distribution of cocaine in Coffee County. He committed the instant offense shortly after being released from prison on his conviction for distribution of cocaine. His federal sentence reflected his prior state convictions and the risk of harm his conduct posed to society. Judge Collier also recommended that Fielding participate in a drug treatment program while he is in prison.
The indictment and subsequent conviction of Fielding was the result of an investigation conducted by the Federal Bureau of Investigation, Manchester Police Department, Coffee County Sheriff’s Office, Winchester Police Department, and Tennessee Highway Patrol. Assistant U.S. Attorney Michael D. Porter represented the United States.
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Three Charged with Heroin Conspiracy Resulting in Death of Overdose VictimRead the Press Release
CHATTANOOGA, Tenn. – On June 28, 2016, a federal grand jury returned a superseding indictment charging Darius Jermaine Blakemore, a.k.a. Tank, 27, of Chattanooga, Tenn., Joshua Corbett, 27, currently of Chattanooga, Tenn., and Jessica Rachels, 25, currently of Chattanooga, Tenn., with conspiracy to distribute heroin resulting in the death of another individual (victim) from his use of that heroin. The three were also each charged with distributing heroin resulting in the death of the victim from his use of that heroin.
Blakemore was charged individually with possession with intent to distribute cocaine, possession with intent to distribute cocaine base “crack,” possession with intent to distribute heroin, and possession of a firearm in furtherance of a drug trafficking crime. He was also charged with possession of a firearm as a convicted felon. More information regarding these charges can be found in the superseding indictment on file with the U.S. District Court in Chattanooga.
In February 2016, the victim was found dead at his residence in Red Bank, Tenn. The superseding indictment alleges that he died from a heroin overdose.
If convicted as charged, Blakemore faces a mandatory minimum sentence of 25 years up to a statutory maximum sentence of life in prison. Corbett faces a mandatory minimum sentence of 20 years up to a statutory maximum of life in prison. Rachels faces a mandatory minimum sentence of 20 years up to a statutory maximum sentence of life in prison.
Law enforcement agencies participating in the joint investigation include the Drug Enforcement Administration, Hamilton County Sheriff’s Office, Chattanooga Police Department, Red Bank Police Department, Tennessee Bureau of Investigation and Tennessee Highway Patrol. Assistant U.S. Attorney Michael D. Porter represents the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
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Major Drug Trafficking Organization Members Indicted for Methamphetamine and Firearms ChargesRead the Press Release
GREENEVILLE, Tenn. – On May 10, 2016, a federal grand jury returned an 80-count indictment, charging 27 individuals with conspiracy to distribute and possess with the intent to distribute more than 50 grams of methamphetamine. Six were charged with possession of firearms in furtherance of drug trafficking offenses.
Fifteen of those charged appeared in U.S. District Court on June 24, 2016, before U.S. Magistrate Judge Clifton L. Corker and pleaded not guilty to the charges in the indictment.
Individuals charged in the indictment include: Rickey Dale Munsey, 47, Washburn, Tenn.; Jeffery Brian Wills, 27, Greeneville, Tenn.; Joel Hosea Beasley, 36, Morristown, Tenn.; Steven Dwight Hopkins, 46, Mooresburg, Tenn.; Guy Mayns, 31, Morristown, Tenn.; Christopher Allen Williams, 47, Morristown, Tenn.; James Guinn, 36, Morristown, Tenn.; Jenny Louise Musson, 32, Greeneville, Tenn.; Maria Smelcer, 42, Mosheim, Tenn.; Tomasena Miluv Payne, 28, Talbot, Tenn.; David Lee Sicilia, 31, Morristown, Tenn.; Andrew Harville, 28, Morristown, Tenn.; Nathan Carroll, 36, Morristown, Tenn.; Jamie Lee Bray, 24, Morristown, Tenn.; Darinda Sue Beasley, 36, Morristown, Tenn.; Erica Sue Harris, 34, Russellville, TN Tenn.; Jeremy Kane Jones, 30, Morristown, Tenn.; Eric James Reedy, 32, Rogersville, Tenn.; Timothy Shannon Maner, 35, Morristown, Tenn.; Christopher Wayne Munsey, 26, Morristown, Tenn.; Morgan Alan Moore, 30, Morristown, Tenn.; James Calvin Hale, 38, Morristown, Tenn.; Larry Wayne Martin, 52, Russellville, Tenn.; Kellie Hopkins, 23, Mooresburg, Tenn.; Donald Edward Grey, Jr., 40, Bean Station, Tenn.; John Nathaniel Beasley, 19, Mooresburg, Tenn.; and Tim Parvin, 38, Russellville, Tenn.
If convicted as charged on the methamphetamine conspiracy count, the defendants face a mandatory minimum of 10 years up to life in prison, a maximum fine of $10,000,000.00, and a minimum of five years supervised release.
This indictment is the result of an investigation by the Federal Bureau of Investigation, Hamblen County Sheriff’s Office, Third Judicial District Drug Task Force, Fourth Judicial District Drug Task Force, Morristown Police Department, Greene County Sheriff’s Office, Hawkins County Sheriff’s Office, Jefferson County Sheriff’s Office, Knox County Sheriff’s Office, Jefferson City Police Department, Grainger County Sheriff’s Office; Johnson City Police Department, Bean Station Police Department and Claiborne County Sheriff’s Office. Assistant U.S. Attorney Donald Wayne Taylor will represent the United States.
This prosecution is 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
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
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Kevin Michael Pippin Sentenced to 124 Months in Federal Prison for Child Pornography OffensesRead the Press Release
KNOXVILLE, Tenn.- On June 22, 2016, Kevin Michael Pippin, 41, of Knoxville, Tenn., was sentenced by the Honorable R. Leon Jordan, Senior U.S. District Judge, to serve 124 months in prison for distributing and possessing child pornography. Following his release from prison, he will be supervised by the U.S. Probation Office for 15 years and required to register with the sex offender registry in any state in which he resides, works, or attends school.
Pippin pleaded guilty in July 2015 to federal charges stemming from an undercover investigation into distribution of child pornography via peer-to-peer file sharing software on the Internet. After undercover investigators downloaded child pornography from Pippin’s computer, a federal search warrant was executed at his residence. A forensic examination of his computer equipment revealed that he had collected thousands of images and 82 videos of child pornography. A large assortment of the depictions of child abuse collected by Pippin was available for download by others from his computer through the use of the peer-to-peer software.
During the sentencing hearing, Judge Jordan remarked that the “staggering” number of images of child pornography the defendant had collected justified, in part, the length of the of the prison sentence.
This investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew Morris represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Caryville Resident Sentenced to Serve 160 Months in Prison for Child Pornography OffensesRead the Press Release
KNOXVILLE, Tenn.- On June 15, 2016, Robert Breon Evans, 60, of Caryville, Tenn., was sentenced by the Honorable Thomas A. Varlan, Chief U.S. District Judge, to serve 160 months in federal prison as a result of his conviction for distribution and possession of child pornography. Following his release from prison, Evans will be supervised by the U.S. Probation Office for 15 years and required to register with the sex offender registry in any state in which he resides, works, or attends school.
Evans pleaded guilty on Feb. 10, 2015 to federal charges stemming from an undercover investigation into distribution of child pornography via peer-to-peer file sharing software on the Internet. After undercover investigators downloaded child pornography from Evans’s computer, a federal search warrant was executed at his residence. A forensic examination of his computer revealed that he had collected thousands of images and videos of child pornography. A large assortment of the depictions of child abuse collected by Evans was available for download by others from his computer through the use of peer-to-peer software.
Nancy Stallard Harr, Acting U.S. Attorney, emphasized the importance of pursuing child pornography offenders. “The United States Attorney’s office will continue to aggressively prosecute individuals who victimize children, who are some of the most vulnerable members of our society, by sharing child pornography on the Internet.”
This investigation was conducted locally by Knoxville Police Department’s Internet Crimes Against Children Task Force. Assistant U.S. Attorney Matthew Morris represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Federal Jury Convicts Kingsport Attorney of FraudRead the Press Release
GREENEVILLE, Tenn. – On June 13, 2016, following a five-day trial in U.S. District Court, a jury convicted Everett H. Mechem, 57, of 28 counts of wire fraud, two counts of Supplemental Security Income (SSI) fraud, two counts of providing false statements, and one count of theft from the United States. Sentencing is set for 1:30 p.m., on Sept. 21, 2016, in U.S. District Court in Greeneville.
According to the evidence presented at trial, from January 2009 to July 2013, Everett H. Mechem, acting as the attorney and representative payee for his wife, Sheila A. Mechem, schemed to defraud the United States government to obtain SSI payments for her to which she was not entitled. The scheme involved false statements and misrepresentations to the Social Security Administration (SSA) regarding Sheila Mechem’s living arrangements, financial resources, and income. Everett Mechem reported that he was living separately from his wife and that she had little to no income or resources; meanwhile, husband and wife rented a five-bedroom home together in Kingsport, Tenn., purchased a new home in 2012, and shared in the profits of Everett Mechem’s law practice. Additionally, Everett Mechem concealed that his wife was working as a paralegal and office manager at the Mechem Law Firm, P.C. in Kingsport. She also served as a commercial spokesperson for Everett Mechem’s affiliated business, the Consumer Law Center, all while Everett Mechem collected monthly SSI payments for his wife’s claimed inability to work.
Nancy Harr, Acting U.S. Attorney for the Eastern District of Tennessee said, “As a program meant to help those who can’t afford the basic necessities of life, the integrity of the Social Security Administration’s SSI program is vital to its continued success. The U.S. Attorney’s Office will continue to pursue and prosecute those who attempt to defraud that federal program and the United States.”
“One of our highest priorities is ensuring that those who steal SSA payments are swiftly detected and prosecuted. I’m grateful that the U.S. Attorney’s Office shares our determination to protect the integrity of the SSA’s programs for those who rely on them now and into the future,” Special Agent in Charge Margaret Moore-Jackson, SSA/Office of the Inspector General (OIG).
The SSA/OIG led the investigation which led to the indictment and subsequent conviction of Everett Mechem. Assistant U.S. Attorneys David Gunn and Christian Lampe represented the United States at trial.
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Using Craig’s List to Distribute Child Pornography Results in A 70 Month Federal Prison Sentence for Chattanooga ResidentRead the Press Release
CHATTANOOGA, Tenn. – On June 13, 2016, Larry Vance, 29, of Chattanooga, Tenn., was sentenced by the Honorable Harry S. Mattice Jr., U.S. District Court Judge, to serve 70 months in federal prison for distribution of child pornography. Upon his release from prison, Vance will be supervised by the U.S. Probation Office for 15 years.
In December 2015, Vance pleaded guilty to distribution of child pornography. The investigation that led to the charges against Vance began when Texas law enforcement noticed that a Tennessee man was sending images of child pornography and discussing the molestation of these children through Craig’s List.
The U.S. Department of Homeland Security Investigations, Federal Bureau of Investigation, and Chattanooga Police Department assisted with this investigation. 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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Washington County Couple Sentenced for Using Children to Produce Child PornographyRead the Press Release
GREENEVILLE, Tenn. – Ronnie Lee McCall, 63, of Johnson City, Tenn., was sentenced on June 6, 2016, by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve life in federal prison. In the unlikely event that he is released from prison, he was ordered to remain under the supervision of U.S. Probation for the remainder of his life. There is no parole in the federal system.
McCall’s wife, Connie Sue Gentry McCall, 41, also of Johnson City, was previously sentenced in February 2016 by Judge Greer to serve 216 months in federal prison. Upon her release from prison, she will remain under the supervision of U.S. Probation for the remainder of her life.
Connie McCall and Ronnie McCall were charged in a federal indictment after state authorities learned that they sold three girls, ages 12, 14, and 16, to a man who raped and produced child pornography of the girls. Connie McCall pled guilty to the production of child pornography by a parent and assisted the United States in the prosecution of Ronnie McCall, who was found guilty by a jury of selling a child for illegal sexual activity, producing child pornography, producing child pornography by a parent, and using a means of interstate commerce to entice, persuade, or coerce a minor to engage in illegal sexual activity. Evidence presented during his trial showed he established a two-year pattern of sexual abuse of three children, 50 to 60 confirmed rapes, and the production of 400 images of child sexual abuse.
During sentencing Judge Greer noted that this was one of the most horrible crimes he had ever seen committed and scolded Mr. McCall for completely and totally abdicating his responsibility as protector of these children.
Agencies involved in this investigation included the Federal Bureau of Investigation, Washington County, Tennessee Sheriff’s Office, Tennessee Division of Child Services, and Johnson City, Tennessee Police Department. Assistant U.S. Attorneys Helen Smith and Corey Shipley 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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Jury Convicts Brandon Scott Woodley in Federal Court of Being A Convicted Felon in Possession of AmmunitionRead the Press Release
KNOXVILLE, Tenn. – On June 2, 2016, after a two-day trial in U.S District Court, a federal jury convicted Brandon Scott Woodley, 34, of Knoxville, Tenn., of knowingly possessing ammunition after having previously been convicted of a felony. Woodley has been in custody since his arrest in September 2015, following an August 2015 shooting in a west Knoxville hotel parking lot. Witnesses testified at trial that Woodley shot a co-worker during an argument and fled the scene with the gun; however, some ammunition from the shooting was recovered in the parking lot.
In 2009 Woodley pleaded guilty in the same court of being a convicted felon in possession of a cache of firearms.
Sentencing was set for Oct. 3, 2016, before the Honorable R. Leon Jordan, Senior U.S District Court Judge. Woodley faces a maximum sentence of 10 years in prison, plus another two years in prison for violating the supervised release he was serving following his prison sentence for the 2009 conviction.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Knoxville Police Department. Assistant U.S. Attorney Matthew Morris 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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Eastern District of Tennessee United States Attorney’s Office Employees Honored by Department of Justice at Executive Office for United States Attorneys Director’s Awards CeremonyRead the Press Release
WASHINGTON – Sharry A Dedman-Beard, Public Information Officer/Law Enforcement Coordinator and Amy K. Veatch, Paralegal Specialist with the U.S. Attorney’s Office in the Eastern District of Tennessee were two of 160 recipients recognized by Deputy Attorney General Sally Yates and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 32nd annual Director’s Awards Ceremony on Thursday, June 1, 2016, in Washington D.C.
The Eastern District of Tennessee was one of 33 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
In her prepared remarks, Deputy Attorney General Yates said, “The achievements being recognized today reflect the breadth of the department’s responsibilities, and some of our most significant challenges. From dismantling dangerous gangs, drug cartels and human trafficking operations to tackling political corruption, white collar crimes, and international terrorism, these awardees have taken on our toughest cases. And the citizens of our country are safer because of their work.”
“We honor the truly talented and dedicated legal and administrative personnel in the 94 U.S. Attorneys’ offices and our law enforcement partners who everyday touch lives in our communities, protect the American people, and work to ensure the fair and impartial administration of justice,” said Director Wilkinson.
Sharry A. Dedman-Beard received the 2016 Director’s Award for Superior Performance in Public Affairs. She was recognized for her extraordinary efforts in coordinating the media response in July 2015, when a homegrown violent extremist shot and killed five soldiers at a Marine recruiting station and National Guard facility in Chattanooga. Ms. Dedman-Beard worked closely with the U.S. Attorney, FBI, and other federal, state and local public information officers to facilitate the controlled release of information to international and domestic media representatives. She consulted with the public affairs contacts at EOUSA and the Department’s National Security Division; composed press releases; organized press conferences; and served as a contact for those state and local political and public figures that were anxious to be a part of the response and investigation. She was also recognized for demonstrating her expertise in media relations by her response to the press in other high profile criminal cases throughout the district. Her relationship with the district’s media and law enforcement agencies and her expertise enhanced the public relations efforts of the U.S. Attorneys’ office.
Amy K. Veatch received the 2016 Director’s Award for Superior Performance in a Litigative Support Role. Ms. Veatch was recognized for her outstanding organizational and technological skill in preparing discovery, trial exhibits, and electronic presentations of evidence at complex trials in the Chattanooga Division. Specifically, her management of a recent high profile case demonstrated her unsurpassed value to the office. She led discovery and preparation of 502 electronic trial exhibits, which stemmed from her tackling the inventory and management of 275,000 pages of medical records seized from several pill mills. She devised a medical reports tracking system for data from multiple agencies, spanning several years of investigation. She also created timelines, maps, summary charts, and edited audio and video exhibits taken from hours of video surveillance, undercover recordings, and 60 days of wire interceptions of thousands of pertinent calls. The defendant’s conviction and 280-year prison sentence - and the resulting chilling effect on would-be pill mill operators in the district and elsewhere - were made possible by Ms. Veatch’s technological and organizational expertise, intelligence, and heartfelt commitment to the mission of the Department.
“These awards are tangible proof of the respect that Sharry Dedman-Beard and Amy Veatch have earned through their dedication to the mission of the Department of Justice in the Eastern District of Tennessee. Our district takes great pride in their achievement and accomplishments, and joins the Director in thanking them for their service to the United States,” said Acting U.S. Attorney Nancy Stallard Harr.
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
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Final Individuals Sentenced as Part of Johnson City Drug ConspiracyRead the Press Release
GREENEVILLE, Tenn.– William Corey McAllister and Phillip Eugene Woolwine, both of Johnson City, Tenn., were sentenced on May 31, 2016, by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 90 months, and 60 months, respectively, in federal prison. Both previously pleaded guilty to conspiracy to distribute, and possess with the intent to distribute, 28 grams or more of a mixture and substance containing a detectable amount of cocaine base (“crack”). There is no parole in the federal system.
From March 2012 to April 2013, McAllister, Woolwine, and numerous others participated in a massive conspiracy which was responsible for the distribution of multi-kilogram quantities of crack cocaine throughout Johnson City. To accomplish this, participants procured powder cocaine from sources of supply in Georgia, transported the contraband to Tennessee, and then manufactured it into crack cocaine. Once that process was complete, countless facilitators, couriers, and distributors collaborated to sell the product throughout the area. More details of the conspiracy are found in the plea agreements on file with U.S. District Court.
This year-long investigation was the product of a partnership between the Johnson City, Tennessee Police Department, First Judicial District Drug Task Force, and Drug Enforcement Administration. Assistant U.S. Attorney Nick Regalia represented the United States.
In total, 21 individuals were charged as part of this investigation. Those previously sentenced include:
- Demetrius Antwan Dalton, 35, of Atlanta, Ga., 240 months;
- Tavares Lashaun Dalton, 36, of Covington, Ga., 240 months;
- Marcus Lavoya Holliman, 36, of Atlanta, Ga., 210 months;
- Karim Abdullah Hasan, 44, of Elizabethton, Tenn., 192 months;
- Eullis Monroe Goodwin, 43, of Elizabethton, Tenn., 188 months;
- Micah Antwan Still, 34, of Covington, Ga.,120 months;
- Derrick Henry Connor, 40, of Sherills Ford, N.C., 120 months;
- Devin Deonte Blalock, 20, of Jonesboro, Ga., 120 months;
- Kwanza Tarveze Worthy, 20, of Atlanta, Ga.,120 months;
- Don Juan Glass, Jr., 22, of Atlanta, Ga., 120 months;
- Robert Nelson Racanelli, 27, of Johnson City, Tenn., 120 months;
- Uhamma Castillo Delgado, II, 24, of Johnson City, Tenn.,120 months;
- Justin Levon Bookwalter, 22, of Johnson City, Tenn.,96 months;
- Robert Edward Dudley, 73, of Johnson City, Tenn., 96 months;
- June Gemini Lopez, 38, of Johnson City, Tenn.,78 months;
- Demario Jenard Serchion, 29, of Atlanta, Ga., 77 months;
- Daisy Loretta Grindstaff, 58, of Elizabethton, Tenn., 70 months;
- Cody Alan Sherrill, 22, of Jonesborough, Tenn., 41 months; and
- Kandace Marie Haywood, 33, of Atlanta, Ga., time served.
The investigation is a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (“OCDETF”) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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Chattanooga Residents Indicted for Kidnapping & Sex TraffickingRead the Press Release
CHATTANOOGA, Tenn. – On May 26, 2016, Corrie Gillispie, a.k.a., Tyme, BiggtymeChattanoogatyme, and Profit Tyme, 40, of Chattanooga, Tenn., and Willie Watkins, a.k.a., Block Baker, Soldier, and Killer, 40, also of Chattanooga, were arrested by agents of the U.S. Immigration and Customs Enforcement's Homeland Security Investigations (HSI), and Chattanooga Police Department, on charges involving conspiracy, kidnapping, and sex trafficking.
On May 17, 2016, a federal grand jury returned an indictment against Gillispie and Watkins for the above-referenced charges. Details of the offenses are outlined in the indictment, which is on file with the U.S. District Court and available to the public.
On May 27, 2016, Gillispie and Watkins had initial appearances before the Honorable Christopher H. Steger, U.S. Magistrate Judge, and both pleaded not guilty. Both were detained pending their next appearance in U.S. District Court, which for Gillispie is a detention hearing on May 31, 2016, at 11:00 a.m. Watkins waived his detention hearing and no further court appearances have been scheduled for him at this time.
If convicted of kidnapping, Gillispie and Watkins face up to life in prison. If convicted of sex trafficking, Gillispie faces a term of not less than 15 years in prison and will be placed on the sex offender registry for a minimum of 25 years.
This ongoing investigation is being conducted by the HSI, FBI and Chattanooga Police Department. Assistant U.S. Attorney Jay Woods represents the United States.
Members of the public are reminded that these are only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
If you believe you have information that could assist law enforcement in this ongoing investigation, please call the HSI tip line at 866-347-2423.
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Sweetwater Resident Arrested for Snapchat Extortion SchemeRead the Press Release
KNOXVILLE, Tenn. – On May 24, 2016, Brandon Douglas Shanahan, 22, of Sweetwater, Tenn., was arrested and charged with intent to extort money and other things of value from a female victim through a Snapchat communication which threatened to injure her reputation.
Shanahan had his initial appearance on May 25, 2016, before the Honorable Dennis Inman, U.S. Magistrate Judge, and pleaded not guilty. He was released on bond pending his next court appearance in the case.
A detailed account of Shanahan’s conduct leading to his arrest is included in the criminal complaint and supporting affidavit on file with U.S. District Court in Knoxville.
According to the above-referenced affidavit, Shanahan conversed via Snapchat with the female victim using the name “Camsutton2323.” The victim believed she was communicating with Cameron Sutton, a University of Tennessee football player, since the display name for Camsutton2323 was “Cameron Sutton” and the number 23 is Sutton’s University of Tennessee jersey number. The investigation by law enforcement revealed that Sutton himself was a victim of criminal impersonation. Sutton had not conversed with the victim via Snapchat or any other method of communication and had no knowledge of Shanahan’s impersonation of him.
If convicted, Shanahan faces a maximum of two years in prison.
The investigation indicates that there may have been numerous other female victims who have been contacted by Shanahan. Please contact the Federal Bureau of Investigation (FBI) office at 865-744-0751, if you believe that you may have been a victim of extortion by Shanahan through his use of the Snapchat name “Camsutton2323.”
This ongoing investigation is being conducted by the FBI Cyber Crimes Task Force, consisting of members of the Knoxville Police Department, Knox County Sheriff’s Office, and the University of Tennessee Police Department, with the assistance of the Sweetwater Police Department. Assistant U.S. Attorney Cynthia Davidson represents the United States.
Members of the public are reminded that a criminal complaint constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
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Indictment Charges Former Insurance and Annuities Salesman with Establishing Fictional Companies to Defraud Elderly InvestorsRead the Press Release
CHATTANOOGA, Tenn. – On May 17, 2016, a federal grand jury sitting in Chattanooga, Tenn., returned a seven-count indictment against John Allen Morris, Jr., 50, of Knoxville, Tenn., for wire fraud, mail fraud, bank fraud and wrongful use of a government seal.
According to the indictment on file with U.S. District Court, beginning in 2006, Morris devised a scheme to defraud and obtain money by false pretenses. He established two fictitious companies, Pillar Management Company (PMG) and Superior Life Insurance Company (Superior) and then contacted elderly investors by various means, including the telephone, to invest in annuities, bonds, and insurance products. Morris convinced several investors to surrender legitimate annuities to invest in his companies. He established bank accounts at different financial institutions in which he deposited this money received from investors. Rather than investing the funds, Morris converted the money from investors for his own personal use, including paying personal bills and expenses for himself and his family, buying personal property for himself and others, and investment in personal ventures such as an automobile refurbishment and resale enterprise, and “Football Tech” – a business which claimed to stage football camps for high school football players and others. Additionally, to perpetuate his scheme, Morris used some of the funds from investors to pay off others.
If convicted, Morris faces a maximum of 20 years in prison for the wire and mail fraud charges. He faces a maximum of 30 years in prison for bank fraud and a maximum of five years in prison for wrongful use of a government seal.
If you believe that you have been a victim of Morris, please contact the local Federal Bureau of Investigation (FBI) office at 865-744-0751.
Agencies conducting this investigation include the FBI, U.S. Postal Inspection Service, and Tennessee Department of Commerce and Insurance. Assistant U.S. Attorney Steve Neff represents the government.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
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Driver Sentenced to 15 Years in Prison for Second Degree Murder of Passenger in Great Smoky Mountains National Park Car CrashRead the Press Release
KNOXVILLE, Tenn. – On May 6, 2016, Corey Bruce Patrick, 35, of Camden, Tenn., was sentenced by the Honorable Thomas A. Varlan, Chief U.S. District Judge, to serve 15 years in federal prison for second degree murder for a car wreck that resulted in the death of Heather Nicole Hendrix.
Upon his release from prison, Patrick will be supervised by the U.S. Probation Office for five years. He was also ordered to pay restitution to the victim’s family in the amount of $15,989.77 for funeral and burial related expenses and the value of Hendrix’s car.
In April 2015, Patrick pleaded guilty to the offense described above. According to documents on file with U.S. District Court, in October 2014, after drinking alcohol and using drugs, Patrick crashed the victim’s car while driving at a high rate of speed within the Great Smoky Mountains National Park. One minute before the crash, Hendrix sent a text message that Patrick was “driving fast and crazy.” Patrick’s blood alcohol level was .193, more than twice the legal limit in Tennessee. At the time of the crash, Hendrix, the only passenger, suffered multiple blunt force injuries causing her to die at age 37. Hendrix was survived in death by her mother, three children, and a grandson, who was born two weeks after her death.
The case was investigated by the National Park Service. Assistant U.S. Attorney Brooklyn Sawyers represented the United States.
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United States Settles False Claims Act Allegations Against TVA Contractor Bartlett Holdings, Inc.Read the Press Release
KNOXVILLE, Tenn.- The United States, on behalf of the Tennessee Valley Authority (TVA), reached a settlement on April 22, 2016, with TVA contractor Bartlett Holdings, Inc. (Bartlett), d.b.a. BHI Energy/Sun Technical Services. Bartlett was alleged to have violated the False Claims Act by knowingly concealing or knowingly and improperly avoiding an obligation to refund overpayments received from TVA for work performed on the project to complete the construction of Watts Bar Nuclear Plant Unit 2. Under the terms of the settlement, Bartlett agreed to pay the United States $2.8 million.
In January 2008 Bartlett entered into a subcontract with Bechtel Power Corporation, TVA’s engineering, procurement and construction contractor on the Watts Bar Unit 2 project, to furnish qualified personnel to Bechtel for the project. Bartlett’s subcontract, which was funded by TVA, provided for Bartlett to be reimbursed its actual costs for wages and related expenses, including payroll taxes and insurance incurred for employees working on the project. However, the United States alleged that Bartlett received payments from TVA in excess of actual costs for payroll taxes and insurance and knowingly failed to timely identify, report and refund those overpayments to TVA as required under the subcontract.
“The issue of losing public funds through fraud, waste and abuse is all too well known,” said Acting U.S. Attorney Nancy Harr. “Since these losses usually result in increased costs to the public, parties that contract with the government or its agencies must be held to the terms of their contract. The U.S. Attorney’s office remains committed to recovering funds lost when a contractor departs from its contractual obligations,” added Harr.
This settlement resulted from a joint, comprehensive investigation conducted by the U.S. Attorney’s Office and the TVA Office of Inspector General (TVA-OIG). In January 2014, the TVA-OIG Audit Division initiated an audit of payments to Bartlett under its subcontract. The U.S. Attorney’s office and TVA-OIG Investigations Division subsequently joined the investigation following the filing of a qui tam or whistleblower complaint in May 2014.
Acting U.S. Attorney Harr commended the cooperative efforts of TVA Inspector General Richard Moore and his staff who participated in this complex investigation, including counsel to the Inspector General Charles Kandt, who was assigned to the matter as a Special Assistant U.S. Attorney (SAUSA). SAUSA Kandt and Assistant U.S. Attorney Rob McConkey represented the United States’ interests in this case.
Members of the public should be reminded that the claims settled by this agreement are allegations only and there has been no determination of liability.
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Fatal Car Crash in Great Smoky Mountains National Park Nets Driver 36 Months in Federal Prison for Involuntary ManslaughterRead the Press Release
KNOXVILLE, Tenn. – On May 4, 2016, Joshua Michael Sizemore, 26, of Morristown, Tenn., was sentenced by the Honorable Thomas W. Phillips, Senior U.S. District Judge, to serve 36 months in federal prison for involuntary manslaughter for killing Ashley Marie Trent. Upon his release from prison, he will be supervised by the U.S. Probation Office for three years.
In November 2015, Sizemore pleaded guilty to the offense described above. According to documents on file with U.S. District Court, on Oct. 4, 2014, after drinking alcohol, Sizemore crashed his car while driving within the Great Smoky Mountains National Park (GSMNP). At the time of the crash, he had three passengers in his car. Two of the three suffered serious bodily injuries. The third, Trent, suffered multiple blunt force injuries resulting in her death. Sizemore’s car contained a black box that recorded the car’s speed at 97 miles per hour two seconds prior to the crash in a 45 mile per hour zone on the GSMNP Spur.
The case was investigated by the National Park Service. Assistant U.S. Attorney Brooklyn Sawyers represented the United States.
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Former Vice President of Woods Paint Company Receives 18-Month Sentence for Evading Payment of Federal TaxesRead the Press Release
GREENEVILLE, Tenn. – On May 2, 2016, Charles J. Rutherford, 44, of Johnson City, Tenn., was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 18 months in federal prison for his January 2016 conviction for filing false and fraudulent federal tax returns in an attempt to evade and defeat paying income tax.
From 2006 through 2014, while serving as vice president of Woods Paint Company (“WPC”) in Bristol, Tenn., Rutherford embezzled approximately $1 million by paying his own personal expenses out of company accounts. Although the funds were stolen, he was obligated to report the embezzled money as income on his federal individual income tax returns, which he failed to do for tax years 2008 through 2013. By filing false and fraudulent returns, he evaded paying well over $200,000 in federal taxes. In addition to his prison sentence, he was also ordered to pay over $1.2 million in restitution, to both WPC and the Internal Revenue Service (IRS). Rutherford will also be prosecuted in state court for theft.
This investigation was conducted jointly by the Sullivan County Office of the District Attorney General, City of Bristol Tennessee Police Department, and IRS-Criminal Investigation Division. Assistant U.S. Attorney David Gunn represented the United States.
"The IRS enforces the nation’s tax laws, but also takes particular interest in cases where someone, for their own personal benefit, has taken what belonged to others,” stated Tracey D. Montaño, Special Agent in Charge of the IRS-Criminal Investigation Nashville Field Office. “No matter what the source of income, all income is taxable. The prosecution of individuals who intentionally conceal income and evade taxes is a vital element of the IRS’ enforcement strategy. We are pleased with the successful resolution of this investigation."
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Last Week of April Designated as 2016 National Reentry WeekRead the Press Release
KNOXVILLE, Tenn. – The Department of Justice has designated April 24-30, 2016, as National Reentry Week, to focus on ex-offenders reentering communities post-incarceration. U.S. Attorney General Loretta Lynch supports the position that the successful reentry of ex-offenders is an essential component of the department’s mission to promote public safety because crime can be reduced and neighborhoods made better places to live by helping individuals lead productive law abiding lives after they have paid their debt to society through incarceration.
The U.S. Attorney's Office for the Eastern District of Tennessee will participate in several reentry events throughout the district during National Reentry Week. On Monday, April 25, 2016, Tuesday, April 26, 2016, and Thursday, April 28, 2016, the U.S. Attorney's Office, U.S. Probation Office, and other partners will host call-in meetings in Chattanooga, Knoxville and Johnson City, where ex-offenders meet with various community service providers to seek assistance in making a positive and law abiding transition into their community.
National Reentry Week is one part of a much larger effort known as the Smart on Crime Initiative. This initiative includes a concerted effort by law enforcement and community partners to be both smart and tough on crime. The initiative has three major components that include crime prevention, rigorous prosecution of the most serious and violent criminals, and the successful reentry of ex-offenders. Acting U.S. Attorney Nancy Harr implemented an ongoing Smart on Crime program for the district in January 2016. This program is overseen by Assistant U.S. Attorney Brooklyn Sawyers in the Knoxville headquarters office.
For more information on National Reentry Week, please see: https://www.justice.gov/opa/blog/national-reentry-week. For more information on Smart on Crime, including reentry, go to: https://www.justice.gov/sites/default/files/ag/legacy/2013/08/12/smart-on-crime.pdf.
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Department of Justice Designates April 24-30, 2016, as National Reentry Week in Support of Its Smart on Crime InitiativeRead the Press Release
The United States Attorney’s Office in the Eastern District of Tennessee is smart on crime, and aggressive in pursuit of justice. Our office is composed of attorneys, paralegals, legal assistants and support staff who are dedicated to the mission of the Department of Justice. In 2013, the U.S. Department of Justice launched a comprehensive review of the criminal justice system to ensure that federal law is administered fairly, equitably, and effectively. We were directed to target the most serious offenses, prosecute the most dangerous criminals, direct assistance to crime ‘hot spots,’ and pursue new ways to promote public safety, deterrence, efficiency, and fairness. This initiative from former Attorney General Holder came to be known as Smart on Crime.
We knew we had excelled for many years at these tasks, but we saw the challenge of finding new ways to look at deterrence, efficiency and fairness. We were also challenged to facilitate the successful reentry of former offenders, who have paid their debt to society through incarceration.
In 2015, the U.S. Attorney’s Office developed its Smart on Crime Initiative by devoting a fulltime Assistant U.S. Attorney, Brooklyn Sawyers, to coordinate the initiative across East Tennessee. Our initiative includes a crime prevention program in which the U.S. Attorney’s Office provides a live presentation about positive living and choices and consequences to juvenile offenders in Knox County Juvenile Court and the Richard Bean Juvenile Detention Center. One goal of the prevention program is to dismantle the proverbial school-to-prison pipeline in East Tennessee. The initiative also includes rigorous prosecution of criminals who violate federal law and whose bad acts will likely only be curtailed through a federal prison sentence.
The initiative also seeks to help former offenders who return to East Tennessee live law-abiding lives. While it may seem like new business for the U.S. Attorney’s Office to provide assistance to these former offenders, it is not new at all. The U.S. Attorney’s Office has always been involved when returning former offenders seek early release for good behavior while incarcerated. Our Assistant U.S. Attorneys have gone to prisons and half-way houses to explain the consequences of further criminal behavior after release. Another way to protect this community and seek justice is to remove obstacles that stand in the way of any citizen living a law-abiding life. Our Smart on Crime Initiative allows us to do just that by partnering with Chief U.S. Probation Officer, Tony Anderson, and his office. Through that partnership, we convene community resource providers who are already in the business of providing services that former offenders need, and have them explain their services to the former offenders who may avail themselves of those services. The meetings occur across the district in Chattanooga, Knoxville, and Johnson City on a monthly or quarterly basis. Topics thus far have included substance abuse treatment, how to obtain a driver’s license, housing options, and much more.
Community service providers who have contributed to the Chattanooga effort include: the Bureau of Alcohol, Tobacco, Firearms and Explosives, Chattanooga; Bureau of Prisons Half-Way House; United Way 2-1-1; Tennessee Department of Human Services; Pastor Ternae Jordan and Mt. Canaan Baptist Church; Tennessee Career Center; Chattanooga State Community College; BlueCross BlueShield; Marion County Chaplain; Father to the Fatherless; Stephen’s Table; Northside Neighborhood House; Christian Women’s Job Corp; Behind the Bars; and Joe Johnson Mental Health Center. Community service providers who have contributed to the Knoxville reentry effort include: Knoxville Leadership Foundation; Tennessee Department of Safety; Knox County Health Department; Knoxville Police Department; Federal Bureau of Investigation, Knoxville Division; Susannah House; Helen Ross McNabb; Cokesbury Church; Focus Group Ministries; and Pastor James Davis and Eternal Life Harvest Center. Community service providers who have contributed to the Johnson City reentry effort include: Grace Fellowship Church; Summit Leadership Foundation; Frontier Health; Families Free; Drug Enforcement Administration, Johnson City; and Johnson City Police Department.
The importance of these community service organizations coming together to help former offenders cannot be understated. Convening these organizations in a central location for former offenders increases accessibility and the likelihood that they will use the services. Further, by understanding what their communities offer, former offenders are better prepared to live law abiding lives, which impacts the safety of all the residents of East Tennessee.
Attorney General Loretta Lynch echoed similar sentiment when she designated the week of April 24-30, 2016, as National Reentry Week. She emphasized the importance of preparing those who have paid their debt to society for substantive opportunities beyond the prison gates, and addressing obstacles to successful reentry.
The U.S. Attorney’s Office will participate in National Reentry Week, because we all have an interest in reducing crime in our communities. By encouraging former offenders to live crime-free lives and become productive citizens supporting their families and their communities, we can make a difference. Our activities this week will include in-house training and our regularly scheduled call-in meetings throughout the week. There are many opportunities for the community to become involved as well. If you are interested in this initiative, please consider volunteering for a community-based organization that is dedicated to serving all people. By working together, we can all be smart on crime.
Nancy Harr, Acting U.S. Attorney
Gerald Wayne Jackson Sentenced to 14.5 Years in Federal Prison for Attempted Armed Jewelry Store RobberyRead the Press Release
KNOXVILLE, Tenn. - On April 20, 2016, Gerald Wayne Jackson, 27, of Chattanooga, Tenn., was sentenced by the Honorable Curtis L. Collier, Senior U.S. District Judge, to serve 175 months in federal prison. Jackson pleaded guilty to an attempted Hobbs Act robbery and discharge of a firearm in furtherance of a crime of violence in October 2015.
In April 2013, Jackson and his associate Diontre Danforth, 21, of Chattanooga, Tenn., who was also charged in this case, attempted to commit an armed robbery of the Kennedy Jewelry Store in Chattanooga, Tenn. Jackson entered the jewelry store wearing a mask covering his face and armed with a .223 caliber Saiga assault rifle loaded with a magazine. Jackson immediately fired the rifle toward the back of the store where several employees and a customer were standing. He demanded the employees hand “all of it” over to Danforth, who had entered the store with his face covered carrying a laundry basket and pillow case. But, before they had time to take any merchandise, one of the store managers heard gunfire, grabbed his 9mm handgun and returned fire. Jackson fired several shots toward the manager before he and Danforth left the store. Jackson proceeded to fire several more shots into the store. In total, seven .223 caliber shell casings were recovered from the scene. Several days later, an alert Chattanooga police officer conducted a traffic stop on a vehicle occupied by Danforth and Jackson, which matched the description of the vehicle used in the robbery. Subsequent investigation of evidence recovered from the crime scene and a residence further linked both Danforth and Jackson to the robbery. Danforth previously pleaded guilty and was sentenced to serve nine years in federal prison.
This case was investigated by the Federal Bureau of Investigation and Chattanooga Police Department. Assistant U.S. Attorney Meredith Edwards represented the United States.
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Three Sentenced for Conspiracy to Distribute Hydrocodone and Carisoprodol and Obtaining Fraudulent PrescriptionsRead the Press Release
GREENEVILLE, Tenn. – Three individuals who conspired to fraudulently obtain controlled substances and distribute hydrocodone and carisoprodol were recently sentenced in federal court by the Honorable J. Ronnie Greer, U.S. District Judge.
Jeffery Lynn Anderson, 37 of Kingsport, Tenn., was sentenced on April 4, 2016, to serve 77 months in federal prison for conspiring to distribute hydrocodone and carisoprodol and for conspiring to fraudulently obtain controlled substances. Kirstina Dawn Blazer, 35, of Kingsport, Tenn., was sentenced on April 11, 2016, to time served, after serving more than a year in custody for her participation in the conspiracy. Elizabeth Bowers Campbell, 38, of Johnson City, Tenn., was sentenced on March 28, 2016, to serve four years of probation, including intermittent periods of incarceration as a special condition of probation, for her role in the offenses.
Anderson, Blazer, and Campbell, met at a Johnson City pain clinic where Campbell and an additional co-defendant Kimberly Culbertson were employed. In April 2015, Anderson, Blazer, Campbell, and Culbertson were named in a four-count indictment charging trafficking of oxycodone, hydrocodone, and carisoprodol, as well as conspiracy to fraudulently obtain controlled substances. The charges initiated from an investigation of fraudulently issued prescriptions using the DEA number of a now-retired Johnson City physician who had previously employed Campbell and Culbertson. According to documents on file with the U.S. District Court, over 10,500 dose units of hydrocodone and 450 dose units of carisoprodol (cumulatively) were fraudulently obtained and distributed by Anderson, Blazer, and Campbell.
All four charged in the indictment have now pleaded guilty. Culbertson is scheduled for sentencing on August 8, 2016.
Acting U.S. Attorney Nancy S. Harr commended the hard work of law enforcement in this investigation and stated, “The U.S. Attorney’s Office takes cases involving distribution of these highly addictive prescription medications very seriously. We will continue to work together with law enforcement to prosecute these types of offenses.”
This investigation was conducted by the Tennessee Bureau of Investigation. Assistant Attorney General (Virginia)/Special Assistant U.S. Attorney M. Suzanne Kerney-Quillen and Special Assistant U.S. Attorney Corey Shipley represented the United States.
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U.S. Nuclear Engineer, China General Nuclear Power Company and Energy Technology International Indicted in Nuclear Power Conspiracy Against the United StatesRead the Press Release
WASHINGTON – A two-count indictment was unsealed today in the Eastern District of Tennessee charging Szuhsiung Ho, aka Allen Ho, a citizen of the United States; China General Nuclear Power Company (CGNPC), formerly known as the China Guangdong Nuclear Power Company and Energy Technology International (ETI) for conspiracy to unlawfully engage and participate in the production and development of special nuclear material outside the United States, without the required authorization from the U.S. Department of Energy. This authorization is required by U.S. law and is robustly observed through frequent legal U.S.- China civil nuclear cooperation. Ho was also charged with conspiracy to act in the United States as an agent of a foreign government.
The announcement was made by Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Nancy Stallard Harr of the Eastern District of Tennessee and Executive Assistant Director Michael Steinbach of the FBI’s National Security Branch.
Acting U.S. Attorney Harr affirmed the importance of this case by stating, “The prosecution of individuals who potentially endanger our U.S. citizens by violating laws enacted to ensure our national security, has been and will remain a priority for the U.S. Attorney’s Office in eastern Tennessee.”
“Allen Ho, at the direction of a Chinese state-owned nuclear power company allegedly approached and enlisted U.S. based nuclear experts to provide integral assistance in developing and producing special nuclear material in China,” said Assistant Attorney General Carlin. “Ho did so without registering with the Department of Justice as an agent of a foreign nation or authorization from the U.S. Department of Energy. Prosecuting those who seek to evade U.S. law by attaining sensitive nuclear technology for foreign nations is a top priority for the National Security Division.”
“The arrest and indictment in this case send an important message to the U.S. nuclear community that foreign entities want the information you possess,” said Executive Assistant Director Steinbach. “The federal government has regulations in place to oversee civil nuclear cooperation, and if those authorities are circumvented, this can result in significant damage to our national security. The U.S. will use all of its law enforcement tools to stop those who try to steal U.S. nuclear technology and expertise.”
According to the indictment, Ho is a nuclear engineer employed by CGNPC as a senior advisor and is also the owner and president of ETI. Born in China, he is a naturalized U.S. citizen with dual residency in Delaware and China. CGNPC, which is owned by China’s State-Owned Assets Supervision and Administration Commission of the State Council, is the largest nuclear power company in China and specializes in the development and manufacture of nuclear reactors. ETI is a Delaware corporation headquartered in Ho’s home in Wilmington, Delaware.
According to allegations in the indictment, which was returned on April 5, 2016, beginning in 1997 and continuing through April 2016, Ho, CGNPC and ETI allegedly conspired with others to engage and participate in the development and production of special nuclear material in China, with the intent to secure an advantage to China and without specific authorization to do so from the U.S. Secretary of Energy, as required by law. In particular, the defendants allegedly sought technical assistance related to, among other things, 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.
The indictment further alleges that Ho, under the direction of CGNPC, 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 allegedly facilitated the travel to China and payments to the U.S.-based experts in exchange for their services.
The indictment further alleges that during this same period of time, Ho conspired with others to knowingly act as an agent of China without prior notification to the Attorney General, as required by law. On or about Oct. 4, 2009, Ho allegedly told experts who he was attempting to recruit that, “China has the budget to spend,” and that he needed assistance so that, “China will be able to design their Nuclear Instrumentation System independently and manufactur[e] them independently after the project is complete.” In further correspondence with nuclear experts in the United States, Ho made clear that he was charged with obtaining necessary expertise from the United States at the direction of the CGNPC and the China Nuclear Power Technology Research Institute, a subsidiary of CGNPC, and that he was to do so surreptitiously.
If convicted, the charge of conspiracy to unlawfully engage and participate in the production and development of special nuclear material outside the United States carries a maximum sentence of life in prison and a $250,000 fine. The charge of conspiring to act in the United States as an agent of a foreign government carries a maximum sentence of 10 years in prison along with fines and supervised release.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the FBI, the Tennessee Valley Authority-Office of the Inspector General, the Department of Energy-National Nuclear Security Administration and the U.S. Immigration and Customs Enforcement Homeland Security Investigations, with assistance from other agencies. The case is being prosecuted by Assistant U.S. Attorney Charles E. Atchley Jr. of the Eastern District of Tennessee and Trial Attorney Casey T. Arrowood of the National Security Division’s Counterintelligence and Export Control Section.
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U.S. Attorney’s Office Supports National Crime Victims’ Rights WeekRead the Press Release
KNOXVILLE, Tenn. - The Office for Victims of Crime (OVC) helps lead communities throughout the country in their annual observances of National Crime Victims’ Rights Week (NCVRW) every April by promoting victims’ rights, and honoring crime victims and those who advocate on their behalf. This year’s NCVRW will be held April 10-16, 2016. The theme -- Serving Victims. Building Trust. Restoring Hope. -- presents the opportunity to highlight the importance of providing needed services at the earliest stage of victimization. Early intervention helps prevent both further victimization and involvement in the criminal justice system, thus addressing the cycle of violence and restoring hope for the future.
Beginning at 10:00 a.m., on Wednesday, Apr. 13, 2016, various agencies, including the U.S. Attorney’s Office for the Eastern District of Tennessee, will celebrate NCVRW with displays in the courtyard of the Howard Baker Federal Courthouse, Knoxville. These displays will commemorate the advancement of victims’ rights by honoring all champions in advocating for expanded support and services to communities affected by crime.
NCVRW honors and celebrates the achievements of the past 30 years in securing rights, protections, and services for victims. The bipartisan Victims of Crime Act (VOCA), passed by Congress in 1984, created a national fund to ease victims’ suffering. Financed by fines and penalties paid by offenders, the Crime Victims Fund supports services for victims of all types of crime, including assistance for homicide survivors, survivors of child sexual abuse and victims of human trafficking, as well as rape crisis centers and domestic violence programs among others. VOCA also funds victim compensation programs that pay victims’ out-of-pocket expenses such as counseling, funeral expenses, and lost wages.
“If victims are to trust that the criminal justice system will work for them, we must meet them where they are—physically, culturally, and emotionally,” said Joye E. Frost, Director, OVC, U.S. Department of Justice. “When we take the time to focus on the victim in the aftermath of crime—to address their needs for safety and justice—we can begin to build trust and restore the hope of those victims and their communities. We all play a role in helping victims as they rebuild their lives.”
OVC encourages widespread participation in the week’s events and in other victim-related observances throughout the year. For additional ideas on how to support victims of crime, visit the Office for Victims of Crime website, www.ovc.gov.
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Mark Douglas “Doug” Helton Sentenced to 151 Months in Prison for Child Pornography OffensesRead the Press Release
KNOXVILLE, Tenn.- On April 5, 2016, Mark Douglas “Doug” Helton, 62, of Maryville, Tenn., was sentenced by the Honorable Thomas A. Varlan, Chief U.S. District Judge, to serve 151 months in prison as a result of his conviction for distribution of child pornography.
Following his release from prison, Helton will be supervised by the U.S. Probation Office for 10 years and will be required to register with the sex offender registry in any state in which he resides, works, or attends school.
Helton pleaded guilty in October 2015 to federal charges stemming from an undercover investigation into distribution of child pornography via peer-to-peer file sharing software on the Internet. After undercover investigators downloaded child pornography from Helton’s computer, a federal search warrant was executed at his residence and a forensic examination of his computer revealed that he had collected thousands of images and videos of child pornography. A large assortment of the depictions of child abuse collected by the defendant was available for download by others from Helton’s computer through the use of peer-to-peer software.
Nancy Stallard Harr, Acting U.S. Attorney, emphasized the importance of pursuing child pornography offenders stating, “This sentence should send a message that the United States will aggressively investigate and prosecute those who choose to participate in the continued victimization of children, some of our most vulnerable members of society, through the circulation of child pornography on the Internet.”
This investigation was conducted locally by Knoxville Police Department’s Internet Crimes Against Children Task Force. Assistant U.S. Attorney Matthew Morris represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Jacqueline Stanfill Sentenced to Nine Years in Federal Prison for Fraud and Money LaunderingRead the Press Release
KNOXVILLE, Tenn. – On April 4, 2016, Jacqueline J. Stanfill, 58, of Knoxville, Tenn., was sentenced by the Honorable Leon Jordan, Senior U.S. District Judge, to serve 108 months in federal prison for wire fraud, mail fraud and money laundering. In January 2016, Stanfill pleaded guilty to these charges that were included in a July 2015 indictment.
In addition to her prison sentence, Stanfill was ordered to pay over $8 million in restitution to the victims of her crimes.
Stanfill was the owner and operator of Stanfill Wealth Management in Knoxville. In her plea agreement on file with the U.S. District Court Clerk, she admitted to claiming to invest her clients’ money with legitimate investment companies. However, Stanfill converted these funds to her own personal use. In order to maintain the confidence of her clients, she created phony documents that had the appearance of account statements and correspondence from Charles Schwab and Co., Inc. She further attempted to maintain the confidence of her clients by making payments either under the guise of returning invested funds and accumulated earnings, and/or by sending funds to the Internal Revenue Service to maintain the illusion that the client’s fictitious investments were tax-deferred.
This investigation was conducted by the Federal Bureau of Investigation and Internal Revenue Service. Assistant U.S. Attorneys Frank Dale and Jennifer Kolman represent the United States.
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Dennis Richard Smith Sentenced to More Than 19 Years in Prison for KidnappingRead the Press Release
KNOXVILLE, Tenn. – On March 31, 2016, Dennis Richard Smith, 55, of Knoxville, Tenn., was sentenced by the Honorable Pamela L. Reeves, U.S. District Court Judge, to serve 235 months in federal prison.
In July 2014, Smith pleaded guilty to the May 2014 kidnapping of his ex-wife from a home where she worked as a housekeeper in west Knoxville. Evidence presented at the sentencing hearing showed that Smith broke a window to gain entry into the residence. He then brandished an airsoft pistol, placed the pistol against the victim’s head, threatened to kill her, and forcibly kidnapped her. The victim did not realize that the pistol was an airsoft pistol until after she was rescued by law enforcement. The victim had previously been stalked and harassed by Smith and had a valid order of protection against Smith. After taking the victim and holding her for several hours, Smith fled with her to North Carolina. He communicated with the victim’s family by phone and told them that if anyone tried to stop him, they would never see her again.
In the late hours of May 7, 2014, law enforcement determined that the vehicle Smith was driving was at a rest area on Interstate-40E in North Carolina. After surrounding the vehicle, law enforcement arrested Smith and freed the victim.
Agencies involved in this investigation include the Federal Bureau of Investigation (FBI) Safe Streets Task Force, Knoxville Division, which is made up of agents with the FBI and officers from Knoxville Police Department and Knox County Sheriff’s Office; Knoxville Police Department; FBI, Charlotte, North Carolina Division; McDowell County, North Carolina, Sheriff’s Department; Marion, North Carolina Police Department; North Carolina Highway Patrol; and McDowell County, North Carolina Office of Emergency Management. Assistant U.S. Attorney Cynthia F. Davidson represented the United States.
Johnson City Man Sentenced for Federal Gun OffenseRead the Press Release
GREENEVILLE, Tenn. – On March 23, 2016, Jamarcus Lavelle Jackson, 26, of Johnson City, Tenn., was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 120 months in federal prison. Jackson was previously convicted at trial of being a felon in possession of a firearm.
In March 2014, officers with the Johnson City Police Department responded to a shooting at the Battery, a bar/restaurant located downtown. Upon arrival, officers found Jackson being restrained by a group of people. Several victims, all suffering gunshot wounds, were also discovered. When interviewed, numerous witnesses identified Jackson as the shooter and recalled seeing him leave the scene, only to return minutes later to commit the shooting. Testimony at trial showed that Jackson had left to retrieve the instant firearm from his vehicle. As he began shooting, witnesses tackled and subdued him, forcibly removing the gun from his hand. He was placed under arrest once police arrived. One victim died of his wounds. Three other victims recovered from their injuries.
Jackson will now return to state court where he faces charges of first degree murder, attempted second degree murder, aggravated assault, and reckless endangerment.
This investigation was the product of a partnership between the Johnson City Police Department, and Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Nick Regalia and Special Assistant U.S. Attorney Corey Shipley represented the United States.
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Methamphetamine Trafficker Sentenced to 15 Years in PrisonRead the Press Release
GREENEVILLE, Tenn. -- On March 14, 2016, Tito Charles, 30, of Greeneville, Tenn., was sentenced to serve 15 years in federal prison by the Honorable J. Ronnie Greer, U.S. District Judge. Upon his release from prison, Charles will be supervised for 10 years by U.S. Probation.
Charles pleaded guilty to a federal indictment charging him with conspiring to distribute methamphetamine. He was obtaining high purity methamphetamine from sources of supply near Atlanta, Ga., and Chattanooga, Tenn., and distributing the drug in east Tennessee. In February 2015, Greene County deputies arrested Charles in a parking lot in Greeneville, Tenn., with approximately one pound of methamphetamine and $31,391 in cash. He was released on bond later that same day. In March 2015, a multi-agency team investigating the drug trafficking network that Charles was a part of and arrested him again as he was transporting an additional pound of methamphetamine into Greene County via Highway 172.
This investigation was a collaborative effort of several law enforcement agencies including the Greene County Sheriff’s Office, Hawkins County Sheriff’s Office, Third Judicial Drug Task Force, Greeneville Police Department, Tennessee Bureau of Investigation, Tennessee Highway Patrol, Homeland Security Investigations, and Drug Enforcement Administration. The Third Judicial District Attorney’s Office also provided assistance in the prosecution of the case. Assistant U.S. Attorney J. Christian Lampe represented the United States.
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Joshua Hayworth Sentenced to More Than 16 Years in Prison for Hobbs Act Robbery and CarjackingRead the Press Release
KNOXVILLE, Tenn. – Joshua Hayworth, 25, of Loudon, Tenn., was sentenced on March 10, 2016, by the Honorable Thomas A. Varlan, U.S. District Court Chief Judge, to serve 200 months in federal prison.
After a jury trial in July 2015, Hayworth was convicted of a Hobbs Act robbery at the Burger King located on Simpson Road in Lenoir City, Tenn., which occurred on Jan. 30, 2014, and a carjacking in Knoxville, Tenn., which occurred on Feb. 3, 2014. The trial evidence showed that during the Burger King robbery, Hayworth brandished an airsoft pistol and, while pointing the pistol at the employees, ordered them to fill up a bag with money from the safe. His co-defendant, Timothy Chudley, was employed at the Burger King and, unbeknownst to his co-workers, was in on the robbery. During the commission of the robbery, Hayworth hit Chudley in the head with his pistol, causing Chudley to bleed. Hayworth fled the Burger King in a vehicle that he wrecked less than one mile from the Burger King. He left the accident scene before law enforcement arrived, but the trial evidence revealed that the vehicle contained: the pistol used during the robbery; the robber’s mask, which contained Hayworth’s DNA; Hayworth’s identification card; and prescription medication in Hayworth’s name. Cash from the robbery was also recovered from within the wrecked vehicle and all over the highway. Finally, Hayworth’s cellular telephone, which contained text messages to and from Chudley that showed their planning of the robbery, was also recovered.
Although law enforcement searched for Hayworth, he was not found on the night of the Burger King robbery. Trial evidence revealed that four days after the Burger King robbery, Hayworth carjacked a pregnant woman in Knoxville, Tenn., who was less than one week away from delivering her baby. After he violently wrestled the keys away from her, the pregnant victim had to endure an agonizing wait for an ambulance as she feared that her full-term baby, who was not moving, was dead. Upon arriving at the hospital, it was discovered that the baby was, in fact, healthy.
Agencies involved in this investigation include the Federal Bureau of Investigation (FBI) Safe Streets Task Force, which is made up of agents with the FBI and officers from the Knoxville Police Department and Knox County Sheriff’s Office; Knoxville Police Department; Knox County Sheriff’s Office Major Crimes Unit; Loudon County Sheriff’s Office, and Lenoir City Police Department. Assistant U.S. Attorneys Kelly A. Norris and Cynthia F. Davidson represented the United States.
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Robert Heath London Sentenced to 51 Months for Possession of Child PornographyRead the Press Release
GREENEVILLE, Tenn. – On Feb. 22, 2016, Robert Heath London, 43, of Rogersville, Tenn., was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 51 months in federal prison for the possession of child pornography.
According to the plea agreement on file with the U.S. District Court Clerk, London downloaded child pornography via the internet at his home in Rogersville from 2011 to mid-2015. Law enforcement officers found a total of 799 still images of child pornography on London's computer.
In addition to 51 months in prison, Judge Greer sentenced London to serve 10 years on federal supervised release with special sex offender conditions of release and to register as a convicted sex offender under Tennessee law.
Law enforcement agencies participating in this investigation include Hawkins County Sheriff's Office and Sullivan County Sheriff's Office. Assistant United States 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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South Carolina Native Sentenced to 180 Months for Leadership Role in a-PVP Trafficking and International Money Laundering ConspiraciesRead the Press Release
GREENEVILLE, Tenn. – On Feb. 19, 2016, Joshua Lee Lindsey, 30, of Lyman, S.C., was sentenced by the Honorable Pamela L. Reeves, U.S. District Court Judge, to serve 180 months in federal prison for his leadership role in an extensive a-PVP (alpha-pyrrolidinopentiophenone) distribution conspiracy and an international money laundering conspiracy involving northeast Tennessee, southwest Virginia, western North Carolina and western South Carolina.
A-PVP is a synthetic drug primarily ordered from China, which is commonly referred to on the street as “gravel” or “flakka.” Common effects on users include: extreme paranoia; hallucinations; elevated blood pressure; extremely high body temperature; excited delirium; staying awake for days; hostility and having exceptional strength without apparent fatigue. These characteristics make the drug not only very dangerous for the user but also for law enforcement responding to people who are high on it. A-PVP has been referred to by users of the substance as “meth on steroids.”
According to his plea agreement on file with U.S. District Court, Lindsey admitted that between January 2012 and October 2014 he conspired to distribute and was accountable for a conservative estimate of between 35,000 and 75,000 grams (35 to 75 kilograms) of a-PVP. Lindsey and Randall Scott Braddock, 50, of Hendersonville, N.C., became involved in obtaining a-PVP from China and redistributing it for profit as early as January 2012. Braddock was also charged in this case and was previously sentenced to serve 192 months in federal prison.
The investigation in this case resulted in the recovery of a large number of emails between Lindsey and a particular a-PVP supplier in China. In these emails, Lindsey asked for the “most potent” and “top quality” a-PVP they had available. He asked for the “big rocks,” because “demand was high” and was concerned because there had been complaints about a recent drop in potency. Lindsey asked that the supplier in China label the a-PVP as acrylic paint and made up a fake name of ‘AcryliCO’ for the company to ship to him to avoid detection from law enforcement. He requested the supplier send the a-PVP to his address in South Carolina, instead of North Carolina or Tennessee because his partner Braddock had a previous arrest in North Carolina for dealing in a-PVP and other substances. In an email to the supplier Lindsey wrote, “I already gave u good business in n.c. and Landrum s.c, All that was brought to you by me! Scott Braddock and Rick lowe! The whole nc tn boom last year! You’re welcome!” Lindsey expressed his gratification to the China a-PVP supplier by emailing,” You have been a blessing for me! My life is much better now!”
Lindsey later recruited and hired other individuals from South Carolina to assist in the conspiracy by providing them money to send to the supplier in China via Western Union. After the 500 to 1,000 gram shipments of a-PVP were received in South Carolina, Lindsey instructed the others to repackage it into 50 gram bags and deliver them to Braddock in Hendersonville, N.C., for distribution to a very large number of other dealers and customers, primarily in northeast Tennessee.
Others who were charged and previously sentenced in this conspiracy include Richard McNeal Hillman, Ronnie Lee Shelton, Austin Michael Stallard, Johnny Michael Stallard, Desera Jade Allen, Phillip Wayne Mullins, Johnny White, Michael Ray Mangum, Eric Matthew Vance, Evelyn Vickers, James Elmer Mclain, Joshua Brandon Hinkle and Richard Allen Lowe, who were sentenced to serve 188 months, 235 months, 121 months, 180 months, 151 months, 151 months, 120 months, 120 months, 135 months, 110 months, 110 months, 110 months and 80 months in federal prison respectively.
Law enforcement agencies participating in the investigation included: the Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; Homeland Security Investigations; Sullivan County Sheriff’s Office; Kingsport Police Department; Hawkins County Sheriff’s Department; Johnson City Police Department; Greeneville, Tennessee Police Department; Hendersonville, North Carolina Police Department; and Scott County, Virginia Sheriff’s Office. 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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David Elbert Hall Sentenced to 120 Months on Marijuana Conspiracy and Firearm ChargesRead the Press Release
GREENEVILLE, Tenn. – David Elbert Hall, 54, of Kingsport, Tenn., was sentenced on Feb. 2, 2016, by the Honorable R. Leon Jordan, U.S. District Court Judge, to serve 120 months in federal prison for his role in an extensive marijuana distribution conspiracy centered in the Eastern District of Tennessee and the Western District of Virginia and possessing one or more firearms in furtherance of drug trafficking.
According to the plea agreement on file with U.S. District Court, Hall admitted that between 2003 and 2015 he conspired to distribute and was accountable for at least 100 but less than 400 kilograms of marijuana. After another individual received shipments of marijuana from California, Hall often stored them at his farm in Mendota, Va. Hall also stipulated that he sold marijuana to a number of people, including his son, Michael Elbert Hall, 29, of Kingsport, who was previously convicted and sentenced in federal court to serve 12 months and one day for a marijuana conspiracy charge. Hall acknowledged that the bulk of the marijuana attributed to his son came from him.
In April 2015, Hall was pulled over for a traffic stop in Kingsport. A search of his person and vehicle resulted in the seizure of approximately $32,496.00 in cash, over three pounds of marijuana and a loaded 9mm pistol. A search warrant was subsequently obtained for Hall’s Kingsport residence, which resulted in the seizure of approximately 110 firearms, $56,989.00 in cash, thousands of rounds of ammunition and over six more pounds of marijuana. Two of the firearms were determined to be stolen.
Others who were previously sentenced in this conspiracy included: Morris Anthoney Phillips, 39, and Antonio Barrington Parsley, 24, both of Culver City, Ca.; Glenn Draughn, 69, of Kingsport, Tenn.; Larry Thomas Williams, 68, of Mendota, Va.; and Kenny Russell, 57, of Kingsport, Tenn., who were sentenced to 144 months, 46 months, 63 months, 140 months and 60 months in federal prison respectively.
Law enforcement agencies participating in this investigation include the Tennessee Bureau of Investigation, Internal Revenue Service - Criminal Investigation, Second District Judicial Drug Task Force, Kingsport Police Department, Russell County, Virginia Sheriff’s Office and LA IMPACT (Los Angeles Interagency Police Apprehension Crime Task Force), which includes the Hawthorne, Hermosa Beach, Alhambra, Pomona, Inglewood and Culver City Police Departments. Assistant U.S. Attorney Wayne Taylor represented the United States.
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Michael Schmidt Sentenced to Serve 33 Months in Prison for Wire FraudRead the Press Release
GREENEVILLE, Tenn. – Michael Frank Schmidt, 60, of Jonesborough, Tenn., was sentenced on Feb. 2, 2016, by the Honorable R. Leon Jordan, U.S. District Court Judge, to serve 33 months in federal prison. Judge Jordan also imposed a three-year term of supervised release and ordered Schmidt to pay full restitution to his victims and a $100 special assessment.
Schmidt pleaded guilty in September 2015 to wire fraud. According to information included in documents on file with U.S. District Court, Schmidt devised and executed a Ponzi type investor scheme which defrauded 30 individuals of approximately $744,000, over a six-year period of time. He falsely convinced his victims that they were investing in Toner Depot, a business which had contracts with Tennessee Eastman Company.
Agencies involved in this investigation included the Tennessee Bureau of Investigation, Morristown, Tennessee Police Department, and Jonesborough, Tennessee Police Department. Suzanne Kerney-Quillen and Helen Smith, Assistant U.S. Attorneys represented the United States.
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Soddy Daisy Man Sentenced to Seven Years in Federal Prison for Child PornographyRead the Press Release
CHATTANOOGA, Tenn. - Jason Collins, 37, of Soddy Daisy, Tenn., was sentenced by the Honorable Harry S. Mattice, Jr., U.S. District Judge, to serve 85 months in prison, followed by a 15-year term of supervised release. Collins pleaded guilty in August 2015, to receipt of child pornography. Restitution was also ordered to some of his victims.
The indictment and subsequent conviction of Collins was the result of a year-long investigation conducted by the Federal Bureau of Investigation (FBI), Bradley County Sheriff’s Department, and Harriman Police Department. The investigation began when a Harriman Police detective was able to download images and videos from a Peer-to-Peer internet account belonging to Collins on three different dates over the course of three months. These images and videos were of minors engaging in sexual activity. The FBI, along with an Internet Crimes Against Children Task Force Officer from the Bradley County Sheriff’s Department, discovered that Collins had more than 80,000 images and 300 videos on his computer and other electronic storage media. The images and videos were compared with those from known victims through the National Center for Missing and Exploited Children’s (NCMEC) database. The NCMEC database found that the images belonged to 222 known victim series and the videos belonged to 90 known victim series.
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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Two Florida Brothers Sentenced to 84 Months in Prison for Bath Salts and Money Laundering Conspiracies in Eastern TennesseeRead the Press Release
GREENEVILLE, Tenn. – Michael Loren Sheaffer, 35, of Pinellas Park, Fla., and Matthew Shawn Sheaffer, 35, of Holiday, Fla., were both sentenced on Jan. 27, 2016, by the Honorable J. Ronnie Greer, U.S. District Court Judge, to each serve 84 months in federal prison. Both Sheaffers were previously convicted of conspiracy to distribute, and possess with the intent to distribute, assorted Schedule I controlled substances and their analogues; and conspiracy to commit money laundering. There is no parole in the federal system.
Beginning in the summer of 2010, the Sheaffers began an elaborate criminal business of procuring, marketing, packaging, and distributing massive amounts of Schedule I controlled substances and corresponding analogues. Collectively, these drugs are commonly referred to as bath salts, spice, and synthetic marijuana. However, those names are misnomers used to lure consumers and avoid criminal liability. In reality, such substances are nothing more than hard drugs masquerading as harmless chemicals.
Utilizing a website and a network of distributors, the Sheaffers sold these drugs throughout the southeastern United States and elsewhere. A large portion of the contraband was distributed from head shops and businesses within the Eastern District of Tennessee. The resulting proceeds were then laundered, funneled back to the Sheaffers and other co-conspirators, and used to further perpetuate their drugs crimes.
A total of five individuals were charged in this case including: Mitchel Lee Chambers, 36, of Magnolia, Tex., who was sentenced to serve 87 months; Niki Lyn Maxwell, 33, of New Port Richey, Fla., who was sentenced to serve 54 months; and, Gretchen Elizabeth Sheaffer, 30, of Pinellas Park, Fla., who was sentenced to serve 54 months.
Acting U.S. Attorney Nancy Stallard Harr said, “Northeast Tennessee has been particularly hard hit by these dangerous, so-called synthetic, drugs. Thanks to the teamwork of our law enforcement partners in the Kingsport Police Department, Sullivan County Sheriff’s office, and Johnson City Police Department, as well as the Drug Enforcement Administration (DEA) and Internal Revenue Service, Criminal Investigation Division (IRS-CI), we were able to react swiftly and decisively to stem the flow of these harmful substances which have no legitimate or legal purpose.”
“The role of Criminal Investigation Division of the Internal Revenue Service in narcotics investigations is to follow the money so we can financially disrupt and dismantle major drug trafficking organizations,” stated Tamera Cantu, Acting Special Agent in Charge, IRS-CI. “This investigation is a great example of how the various law enforcement agencies in this district work together, and these sentences should send a clear message that drug and money laundering violations are serious crimes that will be punished accordingly.”
This investigation was the product of a partnership between the Kingsport, Tennessee Police Department, Sullivan County Sheriff’s Department, Johnson City Police Department, IRS-CI, and DEA. Assistant U.S. Attorneys M. Neil Smith and Nick Regalia represented the United States.
The investigation is a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (“OCDETF”) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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Benjamin Colby Smith Sentenced to 200 Months for Leadership Role in Methamphetamine ConspiracyRead the Press Release
GREENEVILLE, Tenn. – On Jan. 25, 2016, Benjamin Colby Smith, 39, of Russellville, Tenn., was sentenced by the Honorable R. Leon Jordan, U.S. District Judge, to serve 200 months in federal prison for his leadership role in a methamphetamine conspiracy centered in the Morristown area of the Eastern District of Tennessee. Smith obtained substantial quantities of methamphetamine from a source of supply in Georgia and redistributed it to others in and around Morristown, Tenn.
According to Smith’s plea agreement on file with U.S. District Court, he was involved in a traffic stop in Morristown in September 2014. This stop lead to the search of the vehicle he was driving and resulted in the seizure of approximately 45 grams of methamphetamine. Smith was arrested and transported to jail. While incarcerated, he made a number of calls, which were recorded. During some of these calls, he directed Stacy Margarita Williams, 24, and Krystal Ann Sexton, 34, both of Morristown, Tenn., to travel to Georgia and meet with his methamphetamine supplier on his behalf.
In September 2014, Williams and Sexton arrived in Georgia, met with Smith’s source and obtained methamphetamine which was to be returned to Tennessee to sell for Smith. On the return trip to Morristown, Williams and Sexton were pulled over for a traffic stop in Georgia. A search of their vehicle resulted in the seizure of at least approximately 51 grams of methamphetamine, a digital scale and a firearm.
Others who were charged and previously sentenced in this prosecution include Williams, Sexton and Cary Ann Winegar, 38, of Morristown, Tenn., who were sentenced to 60 months, 103 months and 97 months, in federal prison respectively.
Law enforcement agencies participating in this investigation included the Morristown Police Department, Hamblen County Sheriff’s Office and Franklin County, Georgia Sheriff’s Office. Assistant U.S. Attorney Wayne Taylor represented the United States.
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Attorney General’s Smart on Crime Initiative Implemented LocallyRead the Press Release
KNOXVILLE, Tenn.-- At the direction of the U.S. Attorney General in early 2013, the 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.
The Justice Department refers to this initiative as “Smart on Crime.” The U.S. Attorney’s Office for the Eastern District of Tennessee partnered with the Chief of the U.S. Probation Office for the Eastern District of Tennessee, Tony Anderson, and his staff to implement the program locally. The local program focuses 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.
On Monday, Jan. 25, 2016, the local Smart on Crime Initiative started with a Community Resource Expo in Chattanooga, Tenn. Anderson kicked off the inaugural event by addressing the ex-offenders during the expo. The expo included a partnership with or featured community service providers who include Behind the Bars, BlueCross BlueShield, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Bureau of Prisons Half-Way House, Chattanooga Community Kitchen, Chattanooga State Community College, Christian Women’s Job Corp, Father to the Fatherless, Johnson Mental Health, Marion County, Tennessee Jail Chaplain, Mt. Canaan Baptist Church, Northside Neighborhood House, Olivet Church, Salvation Army, Stephens Table, Tennessee Career Center, Tennessee Department of Human Services, Tennessee Department of Labor and Workforce Development Career Center, and the United Way 2-11. Through this network of federal law enforcement officials and community service providers, the Smart on Crime Initiative is working to make this community safer through being both smart and tough on crime. TechTown, a technology and entrepreneurial learning center, provided space for the event and Southern Star, a local Chattanooga-based restaurant, donated full-catering services for the event. Similar events are scheduled for Knoxville and Johnson City, Tennessee this week.
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Morris Anthoney Phillips Sentenced to 144 Months in Marijuana, Money Laundering and Oxycodone ConspiraciesRead the Press Release
GREENEVILLE, Tenn. – On Jan. 19, 2016, Morris Anthoney Phillips, 39, of Culver City, Cal., was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 144 months in federal prison for his leadership role in an extensive marijuana, oxycodone and money laundering distribution conspiracy centered in the Eastern District of Tennessee and the Western District of Virginia. Phillips was the primary source of supply responsible for the distribution of these drugs from the Los Angeles, California area to Tennessee and Virginia.
According to the plea agreement on file with the U.S. District Court Clerk, Phillips admitted that he was accountable for at least 954 kilograms of marijuana and 1,000 (30 mg) oxycodone pills. In July 2011, law enforcement officers coordinated a 500 pound marijuana reversal operation with Phillips in California. Upon weighing the marijuana, it turned out to be 562 pounds, instead of 500 pounds. Phillips sent another individual to retrieve the money for the additional 62 pounds of marijuana. The other individual was later pulled over for a traffic stop and a search of his vehicle revealed a quantity of cash commensurate with the price for 62 pounds of marijuana (approximately $34,590.00). Officers subsequently knocked on the door of Phillips’ residence and he attempted to flee. Upon seeing officers surrounding the residence, he went back inside the residence and barricaded himself for a period of time. A search warrant was executed which resulted in the seizure of 562 pounds of marijuana, packaging materials, two .40 caliber pistol magazines, a black holster, and a paper bag with $11,000 in U.S. currency. A 12 year old child was also present in the residence with Phillips during all of these activities. A search warrant was then obtained for the address in Burbank, where Phillips’ co-conspirator went to get additional monies for the remaining marijuana, and which was operated as a stash house. A search of that residence revealed $249,015.00 in two suitcases. One of these suitcases had a hidden compartment built into it to hide the money. Another suitcase contained $519,920.00 in cash. A black bag was also found in the residence containing $70,700.00. In total, approximately 1.2 million dollars was seized from the residences and vehicles searched at the Los Angeles and Burbank addresses.
Phillips took over dealing to his Tennessee co-conspirators in approximately 2010 after their former Jamaican source of supply was deported back to Jamaica. Phillips flew from Los Angeles to either Nashville or Knoxville on at least 14 separate occasions dating back to March 2012 to meet with co-defendants Glenn Draughn, 69, and James Wright, 59, both of Kingsport, Tenn., and pick up bulk cash for drugs he was delivering to them and others. By 2013, Phillips involved his brother, co-defendant Antonio Barrington Parsley, 24, of Culver City, Cal., in the criminal conspiracies and introduced him to Draughn and Wright, among others. Usually, these meetings occurred every two months and involved at least $100,000.00 in cash each time. Phillips and/or Parsley took the money they received from Draughn, Wright and others and put it in a hidden compartment in their luggage to conceal and transport back to Los Angeles.
In July 2014, Parsley, Wright and Draughn were all arrested in Nashville, Tenn., at a meeting in a local motel room near the airport. Parsley conducted this transaction for Phillips. A search of the motel room resulted in the seizure of approximately $100,000.00 in cash, which was payment for another marijuana shipment from California to Tennessee, in addition to $10,500.00 for approximately 100 oxycodone pills. The pills had been hidden in a Skittles candy bag, re-sealed and placed inside Parsley’s suitcase.
Others who have been previously sentenced in this prosecution include Draughn, Parsley, Larry Williams, 68, of Mendota, Va., and Kenny Russell, 57, of Kingsport, Tenn., who were sentenced to 63 months, 46 months, 140 months and 60 months, in federal prison respectively. Wright is scheduled to be sentenced in February 2016.
“These sentences send a clear message that drug and money laundering violations are serious crimes. IRS Criminal Investigation is proud to work with our law enforcement partners, by providing our financial investigative expertise, to stop the flow of illegal drugs into our communities,” stated Tamera Cantu, Acting Special Agent in Charge.
Law enforcement agencies participating in this investigation include: the Tennessee Bureau of Investigation; IRS, Criminal Investigation Division; Second District Judicial Drug Task Force; Kingsport Police Department; Russell County, Virginia Sheriff’s Office; and, LA IMPACT (Los Angeles Interagency Police Apprehension Crime Task Force), which includes the Hawthorne, Hermosa Beach, Alhambra, Pomona, Inglewood and Culver City Police Departments. Assistant U.S. Attorney Wayne Taylor represented the United States.
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Ronnie Lee McCall Convicted of Sexual Exploitation of MinorsRead the Press Release
GREENEVILLE, Tenn. – On Jan. 14, 2016, after a trial in U.S District Court, a jury convicted Ronnie Lee McCall, 60, of Limestone and Johnson City, Tenn., of four counts related to the sexual exploitation of three minor girls. The convictions include: permitting a child in his custody and control to travel in interstate commerce to produce child pornography; production of child pornography; production of child pornography by a parent; and using a means of interstate commerce to induce a minor to engage in illegal sexual activity (child rape under Tennessee law).
Sentencing has been set for June 6, 2016, before the Honorable J. Ronnie Greer, U.S District Court Judge. McCall faces a mandatory minimum term of 30 years in prison. His wife, Connie Stout McCall, 40, who was charged with the same offenses, pleaded guilty in February 2014 to production of child pornography by a parent. Both have been in federal custody since October 2013.
Nancy Stallard Harr, Acting U.S. Attorney for the Eastern District of Tennessee, noted, "This prosecution underscores the importance of our partnership with local and state authorities, social service agencies, and others in protecting children, who are some of the most vulnerable members of our community. While we cannot reclaim the children's lost childhoods or innocence, we will hold people who sexually victimize children accountable for their conduct."
The Tennessee Department of Child Services, Child Protective Services, Washington County Sheriff's Office, Johnson City Police Department, Washington County Child Advocacy Center, Youth Villages, a bail bondsman and Federal Bureau of Investigation worked together to ensure justice for the victims of Ronnie McCall. Assistant U.S. Attorneys Helen Smith and Corey Shipley 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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Facebook Felon Sentenced to Serve 188 Months in Prison for Possessing Firearm in PhotosRead the Press Release
KNOXVILLE, Tenn. – Malik First Born Allah Farrad, also known as Marvin Maurice Buckles, 41, of Johnson City, Tenn., was sentenced on Jan. 14, 2016, by the Honorable Thomas A. Varlan, Chief U.S. District Court Judge, to serve 188 months in federal prison for being a felon in possession of a firearm. There is no parole in the federal system.
In the fall of 2013, officers with the Johnson City Police Department began an investigation into suspected criminal conduct by Farrad. In so doing, law enforcement examined his use of social media, specifically Facebook. Upon review, investigators found that in October 2013 Farrad uploaded a photograph of three handguns placed atop the toilet seat in his bathroom. Having previously sustained numerous felony convictions for drug, gun, and violent offenses, it was illegal for him to be in possession of such weapons.
Subsequently, investigators, working in conjunction with the Federal Bureau of Investigation (FBI), obtained a search warrant for the entirety of Farrad’s Facebook account. Once executed, law enforcement discovered a variety of photographs showing him holding, posing with, and displaying a Springfield, Model XD, .45 caliber, semiautomatic pistol. The pictures were taken from inside Farrad’s bathroom and were uploaded in quick succession in October 2013.
At trial, exhaustive testimony described the distinguishing characteristics of the firearm seen in the seized Facebook photos. Those features both confirmed the identity of the firearm, and dispelled any possibility of it being a toy, fake, replica, or imitation. Consequently, following a two-day jury trial, Farrad was found guilty as charged.
This investigation was the product of a partnership between the Johnson City Police Department and FBI. Assistant U.S. Attorney Nick Regalia 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 also brought as part of the Safe Streets Violent Crimes Initiative, a program which combines the efforts of federal, state, and local agencies in order to stop violent felons from endangering our communities.
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Jacqueline Stanfill Pleads Guilty to Fraud and Money Laundering ChargesRead the Press Release
KNOXVILLE, Tenn. – On Jan. 11, 2016, Jacqueline J. Stanfill, 58, of Knoxville, Tenn., pleaded guilty to wire fraud, mail fraud and money laundering, charges contained in a July 2015 federal indictment, before the Honorable Leon Jordan, Senior U.S. District Judge. A date for sentencing has not yet been set.
Stanfill faces potential sentences of: up to 20 years in prison, a fine of up to $250,000, and supervised release of up to three years for the wire fraud charge; up to 20 years in prison, up to a $250,000 fine, and supervised release of up to three years for the mail fraud charge; and up to 10 years in prison, a fine of up to $500,000 or twice the value of the property involved in the transaction (whichever is greater) and supervised release of up to three years for the money laundering violation. According to terms included in the plea agreement, the court will be asked to order the sentences imposed to run concurrently. Restitution to the victims of her crimes as well as forfeiture of assets gained through her illegal acts may also be ordered by the court.
Stanfill was the owner and operator of Stanfill Wealth Management in Knoxville. In the plea agreement on file with the U.S. District Court Clerk, Stanfill admits that she claimed to invest her clients’ money with legitimate investment companies; however, she converted the funds to her own personal use. In order to maintain the confidence of her clients, she created phony documents that had the appearance of account statements and correspondence from Charles Schwab and Co., Inc. She further attempted to maintain the confidence of her clients by making payments either under the guise of returning invested funds and accumulated earnings, and/or by sending funds to the Internal Revenue Service to maintain the illusion that the client’s fictitious investments were tax-deferred.
The investigation, which led to the indictment of Stanfill, was conducted by the FBI and IRS. Assistant U.S. Attorneys Frank Dale and Jennifer Kolman represent the United States.
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New Tazewell Resident Jerisen Amundsen Sentenced to 127 Months in Prison for Child Pornography OffensesRead the Press Release
KNOXVILLE, Tenn.- On Jan. 7, 2016, Jerisen Lee Amundsen, 20, of New Tazewell, Tenn., was sentenced by the Honorable Thomas A. Varlan, Chief U.S. District Judge, to serve 127 months in prison as a result of his conviction for distribution of child pornography. Following his release from prison, Amundsen will be supervised by the U.S. Probation Office for life and will be required to register with the sex offender registry in any state in which he resides, works, or attends school.
Amundsen pleaded guilty in May 2015 to federal charges stemming from an international undercover investigation into trading child pornography on the Internet. A federal search warrant was executed at Amundsen’s residence and a forensic examination of Amundsen's computer revealed that he had collected 1009 still images and 187 videos of child pornography, in addition to posting child pornography on the Internet.
Nancy Stallard Harr, Acting U.S. Attorney, emphasized the importance of pursuing child pornography offenders. “The successful collaborative efforts of federal, state and law enforcement agencies in this investigation have resulted in this defendant no longer being able to circulate images and videos of the sexual abuse of children to others. This sentence should send a message that the United States will aggressively investigate and prosecute those who choose to participate in the continued victimization of children, our most vulnerable members of society, through the circulation of child pornography on the Internet.”
This investigation was conducted locally by U.S. Homeland Security Investigations, Knoxville Police Department’s Internet Crimes Against Children Task Force, and the Tennessee Highway Patrol. Assistant U.S. Attorney Matthew Morris represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Gary Wayne Smallman Sentenced to Serve Six Years in Prison for Being A Felon in Possession of A FirearmRead the Press Release
GREENEVILLE, Tenn. - On Dec. 21, 2015, Gary Wayne Smallman, 44, of Johnson City, Tenn., was sentenced to serve six years in prison, followed by a three-year term of supervised release with special conditions of release, by the Honorable J. Ronnie Greer, U.S. District Judge. During the sentencing hearing Judge Greer noted Smallman's violent criminal history and high risk of recidivism and the need to promote respect for the law as bases for the 72-month prison term.
Smallman pleaded guilty in August 2015 to a federal grand jury indictment charging him with being a felon in possession of a firearm. He has been in federal custody since his arrest in June 2015.
The indictment and subsequent conviction of Smallman was the result of an investigation conducted by the Washington County Sheriff's Office. Assistant U.S. Attorney 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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Federal Jury Convicts North Carolina Couple of FraudRead the Press Release
GREENEVILLE, Tenn. - Following a 13-day trial in U.S. District Court, a jury convicted Ricky Anthony Lanier, 48, and his wife Katrina Reshina Lanier, 43, both of LaGrange, N.C., of conspiracy to commit wire fraud, wire fraud, and major fraud against the United States.
Sentencing is set for 9:00 a.m., on June 20, 2016, in U.S. District Court in Greeneville. Ricky Lanier faces a possible sentence of up to 60 years in prison and $1 million in fines; Katrina Lanier faces a possible sentence of up to 50 years in prison and $750,000 in fines. The Laniers agreed to forfeit their interests in approximately $170,000 in funds seized from bank accounts as well as five houses in Kinston, N.C., purchased with proceeds of the fraud.
According to the 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. The scheme involved false representations that JMR Investments was eligible as an 8(a) business and that 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 the 8(a) 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. Among other contracts, Ricky Lanier 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 that subcontractor costs were over $400,000 more than they actually were, resulting in the award of a contract for $1.1 million when all work on the project was performed by a Kodak contractor for $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, to include contracts for construction at the VA Medical Center at Mountain Home, Tenn., and in the Great Smoky Mountains National Park. The Laniers received almost $2 million in financial benefit from the scheme, using accounts of the shell companies for payment of personal expenses.
Nancy Harr, Acting U.S. Attorney for the Eastern District of Tennessee said, “The integrity of the Service-Disabled Veteran-Owned Small Business program is vital to its continued success. The U.S. Attorney’s Office will aggressively pursue and prosecute those who attempt to defraud that federal program and therefore the United States.”
“Consistent with Public Law 109-461, awarding contracts to Service-Disabled Veteran-Owned Small Business (SDVOSB) firms is the highest priority within the Small Business programs for VA. Today’s guilty verdict is indicative of the hard work and successful relationships between VA OIG, DOJ, and our law enforcement partners to protect the integrity of the SDVOSB program, and deter those who attempt to defraud our government,” said Special Agent in Charge Monty Stokes, VA, Office of Inspector General, Southeast Field Office.
Kevin Kupperbusch, Special Agent in Charge, SBA, Office of Inspector General (OIG), stated, “Effective partnerships among several law enforcement agencies as well as aggressive investigative efforts were key in bringing these defendants to justice. These convictions should serve as a deterrent to others who intend to take advantage of disabled military veterans and defraud the Federal Government through its various contracting programs.”
Special Agent in Charge Bill Gulsby, Department of Interior, OIG, joined in recognizing the efforts of the investigative team in protecting these important programs.
Law enforcement agencies participating in the joint investigation which led to indictment and subsequent conviction of Ricky and Katrina Lanier included the VA, OIG; SBA, OIG; with assistance from the U.S. Secret Service. Assistant U.S. Attorneys Neil Smith and David Gunn represented the United States at trial.
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Michael Anthony Benanti and Brian Scott Witham Indicted for Armed Bank ExtortionsRead the Press Release
KNOXVILLE, Tenn. – On Dec. 15, 2015, a federal grand jury returned a 15-count indictment against Michael Anthony Benanti, 43, of Lake Harmony, Pennsylvania, and Brian Scott Witham, 45 of Waterville, Maine, for their involvement in armed bank extortions of the Y-12 Federal Credit Union in Oak Ridge, Tenn., in April 2015; SmartBank in Knoxville, Tenn., in July 2015; and Northeast Community Credit Union in Elizabethton, Tenn., in October 2015.
After a vehicle pursuit, Benanti and Witham were arrested on Nov.25, 2015, in Buncombe County, N.C., by the North Carolina State Highway Patrol, in conjunction with the Maggie Valley Police Department, Haywood County Sheriff’s Office, and Buncombe County Sheriff’s Office.
The actual charges against Benanti and Witham were announced by the FBI and U.S. Attorney’s Office at a press conference held earlier today and are contained in the indictment on file with U.S. District Court in Knoxville. A trial date has not yet been set. If convicted, both face minimum sentences of 142 years in prison, because federal law requires consecutive sentences for each of the firearms offenses charged in the indictment. As to any individual offense in the indictment, the district court could impose a sentence of up to life in prison.
The arrests and indictment of Benanti and Witham are the result of extensive cooperative efforts of numerous law enforcement agencies, including: Knoxville Police Department, Major Crimes Unit, Knox County Sheriff’s Office, Major Crimes Unit, Oak Ridge Police Department, Elizabethton Police Department, North Carolina State Highway Patrol, North Caroline State Bureau of Investigation, Johnson City Police Department, Tennessee, Carter County Police Department, Tennessee, Asheville Police Department, North Carolina, Maggie Valley Police Department, North Carolina, Waynesville Police Department, North Carolina, Haywood County Sheriff’s Office, North Carolina, Buncombe County Sheriff’s Office, North Carolina, FBI Asheville Resident Agency, North Carolina, along with the FBI Safe Streets Task Forces composed of officers from the Knox County Sheriff’s Office, Knoxville Police Department and Johnson City Police Department. Assistant U.S. Attorneys David Lewen and Greg Bowman represent the United States.
Members of the public are reminded that these are only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
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