Eastern District of Tennessee
Press releases recorded for this federal judicial district.
Jesse Clyde Lee Sentenced to Serve Seventy-Eight Months in Prison for Arson of A BuildingRead the Press Release
KNOXVILLE, Tenn. – Jesse Clyde Lee, 68, of Knoxville, Tenn., was sentenced on June 4, 2015, to serve 78 months in prison by the Honorable Thomas Varlan, Chief U.S. District Court Judge. Lee pleaded guilty in November 2014 to an information charging him with arson of a building.
In addition to his prison sentence, Lee was ordered to pay $4,771,829.45 in restitution. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for three years.
Lee was the owner of Sports Belle, Inc., an athletic apparel manufacturer in Knoxville, Tenn. According to the plea agreement on file with the U.S. District Court, Lee paid Joseph Beason, 38, of Heiskell, Tenn., $10,000 to set the building which housed Sports Belle on fire so that Lee could collect insurance proceeds. Beason enlisted the assistance of Paul Delude, 42, of Knoxville, Tenn., and Chase Lewis, 30, of Powell, Tenn., to assist in burning the building and the $10,000 would be split three ways. Beason, Delude and Lewis, along with a fourth individual, Emma McMillan, 73, of Powell, Tenn., were all charged in this case and are currently awaiting sentencing.
Agencies involved in the investigation of this case include the Bureau of Alcohol, Tobacco, Firearms and Explosives; Knox County Sheriff’s Department; City of Knoxville Fire Department, Fire and Explosion Investigation Unit; and, Knox County Fire Investigation Unit. Assistant U.S. Attorney Jennifer Kolman represented the United States.
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Christopher Anthony Burkett Arrested on Federal Child Pornography ChargesRead the Press Release
KNOXVILLE, Tenn. - Christopher Anthony Burkett, 41, was arrested in Knoxville on June 3, 2015, by members of the Knoxville Police Department’s Internet Crimes Against Children Task Force (ICAC).
The arrest stems from a five-count indictment charging Burkett in two counts with knowingly using, enticing, and coercing minors to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct, having reason to know that it would be transported in interstate and foreign commerce. Burkett is also charged in three separate counts with knowingly receiving, distributing, and possessing child pornography. The indictment alleges that the illegal conduct took place in 2014 and 2015.
Following the arrest, an initial appearance was held in U.S. District Court in Knoxville before the Honorable C. Clifford Shirley, Jr., U.S. Magistrate Judge, at which the indictment was unsealed and Burkett was apprised of the charges. He pleaded not guilty to the charges and was held in federal custody pending a detention hearing set for 9:00 a.m., Tuesday, June 9, 2015.
The details of the charges are outlined in the indictment which is filed as a public record in the U.S. District Court for the Eastern District of Tennessee at Knoxville.
This investigation was conducted by the Knoxville Police Department ICAC. Assistant U.S. Attorney Matthew Morris 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.
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 (CEOS), 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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Ihsaan Al-Amin Sentenced to 100 Month in Prison for Illegally Dispensing Controlled SubstancesRead the Press Release
CHATTANOOGA, Tenn. – On June 1, 2015, Ihsaan Al-Amin, 64, of Smyrna, Ga., was sentenced by the Honorable Curtis L. Collier, U.S. District Court Judge, to serve 100 months in prison, followed by two years of supervised release. In November 2013, Dr. Al-Amin pleaded guilty to a one count bill of information charging him with illegally dispensing controlled substances and two counts of an indictment charging him with tax evasion.
Al-Amin operated the O’Neil Pain Clinic in Chattanooga until 2010, when a joint law enforcement investigation revealed that he had illegally prescribed thousands of pills containing opiates and, during 2005 and 2006, significantly under-reported his taxable income on his tax returns.
Agencies involved in this joint investigation included the Internal Revenue Service Criminal Investigation (IRS-CI), Federal Bureau of Investigation (FBI), Tennessee Bureau of Investigation (TBI), Drug Enforcement Administration (DEA), Hamilton County Sheriff’s Office, and Tennessee State Health Related Boards. Assistant U.S. Attorney James Brooks represented the United States.
U.S. Attorney Bill Killian said, “We continue to prosecute medical professionals who, by their acts, contribute to the prescription drug problems in Tennessee. Those specially trained in the field of medicine know the effects of their illegal acts regarding prescription drugs.”
“Today’s sentencing sends a clear message that illegally prescribing narcotics for profit is a serious crime and will be punished accordingly,” stated Christopher A. Henry, Special Agent in Charge. “IRS Criminal Investigation is proud to work with our law enforcement partners, by providing our financial investigative expertise, to shut down these pill mills and stop the flow of these illegal drugs into our communities.”
TBI Director Mark Gwyn added, “Investigations like this one are by their nature very time and labor-intensive, and we were fortunate to work closely with the FBI and IRS on this case. So it is rewarding to see that a doctor who has violated the trust of his patients, and the community as a whole, is getting the message that these actions will not be tolerated. We will pursue them the same way we pursue street traffickers.”
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Johnny White Sentenced to 120 Months on a-PVP ChargesRead the Press Release
GREENEVILLE, Tenn. – On May 28, 2015, Johnny White, 46, of Kingsport, Tenn., was sentenced by the Honorable R. Leon Jordan, U.S. District Judge, to serve 120 months in federal prison for his role in an extensive a-PVP (alpha-pyrrolidinopentiophenone) distribution conspiracy centered in and around the Sullivan County area and for being a convicted felon in possession of ammunition. A-PVP is a synthetic drug which is commonly referred to on the street as “Gravel” or “Flakka.”
According to the plea agreement on file in U.S. District Court, White admitted that he conspired to distribute and was accountable for a conservative estimate of 1,800 grams of a-PVP between March 2012 and March 2014. Additionally, White maintained a dwelling in Kingsport, Tenn., for the purpose of using and distributing a-PVP. Multiple searches of this dwelling by Kingsport police officers resulted in seizures of a-PVP and/or items of drug paraphernalia.
In October 2013, during the search of a vehicle in Kingsport, a loaded .32 caliber handgun was located underneath the passenger seat where White was seated. Officers also found eight .32 caliber rounds of ammunition, a set of digital scales and other items of drug paraphernalia on his person and in his jacket pocket.
Others involved in this a-PVP trafficking investigation include Austin Michael Stallard, Johnny Michael Stallard and Phillip Wayne Mullins, who were sentenced to serve 121 months, 180 months and 151 months in federal prison respectively. White’s sentence of 120 months was ordered to run consecutively with his state sentences from Hawkins and Sullivan counties.
Law enforcement agencies participating in the investigation include the Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms, and Explosives; Department of 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.
Smithfield Resident Sentenced for Money Laundering and Harboring a FugitiveRead the Press Release
Defendant aided his brother after he fled the country
NEWPORT NEWS, Va. – Danish Syed, 19, of Smithfield, Va., was sentenced today to eighteen months in prison, followed by three years of supervised release, following his convictions for Conspiracy to Commit Money Laundering and Harboring a Fugitive. He was also ordered to pay $35,618.28 in restitution.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service Criminal Investigation’s Washington, D.C., Field Office; and John S. Adams, Special Agent in Charge of the FBI’s, Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.
Danish Syed pled guilty on February 24, 2015. According to the statement of facts filed with his plea agreement, Danish Syed is the half-brother of Mehdi Syed, who was charged, in March, 2014, with an account take over and identity theft scheme. As alleged in the indictment, Mehdi, under the guise of a legitimate company sought to obtain thousands of dollars from customers of SunTrust Bank by fraudulently transferring funds from individual accounts to nominee checking accounts established by Mehdi in the names of aliases and purported business entities. In April, 2014, Mehdi was located in North Carolina and agreed to surrender to authorities. Mehdi relocated his family from North Carolina to Smithfield, Virginia; the home of his mother, his step-father and his half-brother, Danish. After Mehdi failed to turn himself in, authorities interviewed his family members and they each claimed they did not know his whereabouts. The next day Mehdi’s mother, “NS,” contacted authorities and admitted they had lied to the FBI and that they did know Mehdi’s location as Danish Syed drove Mehdi to a hotel on the Eastern Shore of Virginia. Mehdi was arrested and on May 28, 2014 was released on bond and electronic monitoring. In June, 2014, Mehdi opened several bank accounts with FirstView in the names of aliases. On July 9, 2014 Mehdi’s electronic monitoring bracelet was located in a wooded area off of Mercury Blvd. in Hampton, Virginia, and on the same day a warrant was issued for his arrest.
One of the customers whose account was fraudulently accessed was “DS.” Beginning in August, 2014 Mehdi caused “DS’s” account to be accessed without her permission. Through third party payroll services thousands of dollars were transferred out of “DS’s” account and into the Firstview accounts Mehdi had created while on pre-trial release. Firstview closed several of the accounts they suspected were opened on suspicion of fraud and the funds were mailed to the address on record; Danish Syed’s home in Smithfield. Thereafter Danish Syed communicated with Mehdi Syed about the funds. On or about October 14, 2014 through October 16, 2014, Danish Syed deposited the FirstView checks, which represented fraudulent funds, into an account accessible by Mehdi. From October 15, 2014 through October 30, 2014 Mehdi withdrew nearly all of the funds that Danish had deposited into the account from ATM machines located in Lahore, Pakistan.
This case was investigated by IRS-CI and FBI. Assistant U.S. Attorneys Brian J. Samuels and Kaitlin Gratton are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:14CR72.
Six Individuals Sentenced for Fraudlent Schemes Against the U.S. Department of Veterans AffairsRead the Press Release
GREENEVILLE, Tenn. - On May 18, 2015, six individuals who pleaded guilty to knowingly and willfully submitting a total of 464 false claims for travel to the U.S. Department of Veterans Affairs (VA) were sentenced to serve a total of 26 months in prison, four years of federal probation, 15 years of federal supervised release, 300 hours of community service, restitution of $24,581, and assessments of $600.
The six individuals sentenced include: William Anderson, 59, of Knoxville, Tenn.; Georgia Adkins, 40, of Johnson City, Tenn.; David Bell, 54, of Jonesborough, Tenn.; Frederick Deer, 52, of Johnson City, Tenn.; Elliott Harris, 51, of Knoxville, Tenn.; and Matthew Lewandowski, 26, of Johnson City, Tenn.
The VA provides travel assistance to qualified veterans who travel outside their communities to receive health care benefits. Individuals who abuse the benefit by submitting false information to the DVA diminish resources which could be available to qualified veterans.
“The costs of providing medical care for our veterans should never be increased due to false claims submitted by those who would defraud the federal government,” said United States Attorney Bill Killian. “These convictions are notice to those who would consider defrauding the Department of Veterans Affairs, that appropriate penalties await criminal conduct,” he added.
Monty Stokes, Special Agent in Charge, Department of Veterans Affairs, Office of Inspector General (VA OIG), said, “We are committed to thoroughly investigating allegations of fraud against VA programs and resources to ensure veterans are afforded the legitimate benefits they have earned. These convictions reflect the successful cooperation and dedication of the VA OIG, VA Police, and the Department of Justice to bring frauds to justice.”
These indictments and subsequent convictions were the result of an investigation conducted by the Department of Veterans Affairs Office of Inspector General, Nashville Resident Agency, and VA Police Service of Mountain Home, Tenn. Assistant U.S. Attorneys Nicholas Regalia and Helen Smith represented the United States.
Ray M. Mubarak Pleads Guilty to Bank Fraud SchemeRead the Press Release
KNOXVILLE, Tenn. - Ray M. Mubarak, 55, of Knoxville, Tenn., pleaded guilty on May 18, 2015, in the U.S. District Court for the Eastern District of Tennessee, to conspiracy to commit bank fraud, bank fraud, and engaging in an unlawful monetary transaction with bank fraud proceeds. Sentencing has been set for 10:00 a.m., on September 28, 2015.
Mubarak faces a maximum of up to 130 years in prison, as well as supervised release following incarceration, restitutions, and fines. Pursuant to the plea agreement, Mubarak admitted that the loss to the banks resulting from the scheme was more than $1,000,000, but less than $2,500,000.
The plea agreement on file with the U.S. District Court details the scheme to which Mubarak admitted, including providing false tax returns and financial statements to Pinnacle National Bank, SmartBank, and Bank of America in association with loans totaling in excess of $6,000,000. Mubarak further admitted to using loan proceeds for purposes other than those for which he represented the funds would be used, including paying gambling debts, making deposits to a personal stock trading account, and purchasing vehicles.
Agencies involved in the investigation leading to the indictment and guilty plea included the Internal Revenue Service - Criminal Investigation and Federal Bureau Investigation. The investigation and prosecution of Mubarak was coordinated with the Office of the District Attorney General, Sixth Judicial District. Matthew T. Morris, Assistant U.S. Attorney, represented the United States.
Brian Krzeczowski Sentenced to Twenty-Four Years in Prison for Child Pornography ProductionRead the Press Release
CHATTANOOGA, Tenn. - Brian Lee Krzeczowski, 42, of Dayton, Tenn., has been convicted and sentenced by the Honorable Harry S. Mattice, U.S. District Judge, to serve 292 months in prison followed by a five year term of supervised release. Krzeczowski pleaded guilty in December 2014, to a federal grand jury indictment charging him with production of child pornography.
The indictment and subsequent conviction of Krzeczowski was the result of a year-long investigation conducted by the Federal Bureau of Investigation (FBI), Rhea County Sheriff’s Department, and Gallatin Tennessee Police Department. The investigation began when a young woman reported to the Gallatin Police that when she was 16 years old, Krzeczowski, a man with whom she had had a romantic relationship over the internet, had coerced her into taking sexually explicit pictures of herself and sending them to him. After they broke off their online relationship, Krzeczowski posted some of the sexually explicit photos of her on her Facebook page. The FBI, along with an Internet Crimes Against Children Task Force Officer from the Gallatin Police Department, discovered after searching Krzeczowski’s computer that there was at least one other minor victim who had sent sexually explicit images of herself to Krzeczowski.
Assistant United States Attorney Terra Bay represented the United States.
United States Attorney William C. "Bill" Killian Compliments Agencies' Actions in Barge RemovalRead the Press Release
CHATTANOOGA, Tenn. – The U.S. Attorney for the Eastern District of Tennessee issued a statement today about the removal of the Casey Barge (barge) from the Chattanooga waterfront near downtown Chattanooga. The barge, which has been a source of contention for more than a year, left Chattanooga on Thursday, April 30, 2015, to be transported to Mobile, Alabama.
“The recent removal of the Casey barge was a result of cooperative efforts by several federal and state agencies. Through the diligent efforts of Assistant U.S. Attorneys Kent Anderson and Kenny Saffles, who worked closely with trustee Jerry Farinash, Assistant U.S. Trustee Kim Swafford, the Army Corps of Engineers, the U.S. Coast Guard, and the Tennessee Valley Authority, this long-time eye sore is now gone from the city of Chattanooga,” said U.S. Attorney William C. “Bill” Killian. Killian added, “The agencies involved all worked together to protect the environment and the Chattanooga waterfront from a potential disaster. We wish to thank them for their efforts to expedite the removal of the barge consistent with safety, law and regulations.”
Owners of the barge have been involved in Chapter 11 Bankruptcy proceedings for several years. In February 2015, Nashville District Counsel for the U.S. Army Corps of Engineers (Corps) contacted the U.S. Attorney’s Office for the Eastern District of Tennessee, regarding concerns over the condition of the barge, its potential hazards to the environment and navigation on the river, and the need for its removal. Assistant U.S. Attorneys from the Eastern District of Tennessee, together with the Corps and the office of the U.S. Trustee, advocated for the appointment of a special trustee to oversee the barge owner’s estate and the disposition of the barge itself. The U.S. Bankruptcy Court appointed Chattanooga attorney Jerry Farinash to serve in this capacity.
In an effort to have the barge removed from the Chattanooga waterfront, Mr. Farinash initiated the removal process by seeing that required inspections of the barge were performed and that necessary governmental approvals regarding seaworthiness were obtained. During the process, the barge, which had partially sunk on at least one prior occasion, again took on water. Mr. Farinash arranged for the water to be pumped out and the barge raised up to an acceptable navigable level. Ultimately, Mr. Farinash obtained the required approvals and entered into a contract for permanent removal of the barge.
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Chattanooga Doctor and Nurse Practictioner Sentenced to Federal Prison in "Pill Mill" CaseRead the Press Release
CHATTANOOGA, Tenn. – On Apr. 30. 2015, Dr. Jerome Sherard, 60, of Chattanooga, Tenn., was sentenced to serve 60 months in federal prison and Charles Larmore 67, of Chattanooga, Tenn., was sentenced to serve 156 months in federal prison by the Honorable Curtis L. Collier, U.S. District Judge. Upon release from prison, each will be subject to three years of supervision by the U.S. Probation Office. Sherard was also ordered to forfeit $192,956.31 to the United States. Larmore was fined $20,000 and ordered to forfeit $375,829.20 to the United States.
Sherard and Larmore pleaded guilty to a federal indictment charging them with conspiring to distribute prescription drugs outside the scope of professional practice and not for a legitimate medical purpose. The conspiracies involved Superior One Medical Center (Superior Medical), Primary Care and Pain Clinic (Primary Care), and the Sherard Clinic. All three clinics were located in Chattanooga, Tenn. Both sentences reflected significant reductions based upon their cooperation and assistance in the prosecution of others involved in the clinics. Two other defendants in the case, Faith Blake and Barbara Lang, are awaiting sentencing.
As a result of their convictions, Sherard and Larmore no longer have the ability to write prescriptions for controlled substances. In imposing the prison sentences Judge Collier also noted the importance of deterring other medical providers from illegally prescribing drugs.
Facts presented at the sentencing hearing showed that controlled substances were prescribed to customers of these clinics even though many had histories of substance abuse; displayed physical signs or behaviors of drug abuse or over medication; admitted abusing drugs obtained from the clinic; failed drug tests; were caught abusing and/or distributing their prescribed medication; and/or admitted that they had diverted or sold controlled substances that had been prescribed to them in the past. Evidence showed that many of the individuals who frequented these clinics sold their drugs on the street to other addicts and drug abusers.
Records maintained by the Tennessee Controlled Substances Monitoring Database, showed that Larmore and Sherard were both in the top 12 of the more than 30,000 prescribers in the state. Larmore prescribed over two million pills, containing over 100 pounds of oxycodone, and Sherard wrote prescriptions for several hundred thousand pills, containing more than 45 pounds of oxycodone.
U.S. Attorney Bill Killian said, “Prescription drug abuse costs Tennessee almost what it spends on its highway budget each year, 1.4 billion dollars. This is a serious societal problem in Tennessee. Medical professionals must comply with federal law and we will vigorously prosecute those who do not.”
Law enforcement agencies participating in this joint investigation included the Drug Enforcement Administration, Internal Revenue Service, U.S. Trustee’s office, Tennessee Bureau of Investigation, Hamilton County Sheriff’s Office, Chattanooga Police Department, Roane County Sheriff’s Department, and Rockwood Police Department. Assistant U.S. Attorneys Gregg L. Sullivan and Michael D. Porter represented the United States at trial. Assistant U.S. Attorney Tracy Stone prosecuted other individuals involved in the drug conspiracies.
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East Tennessee Wildlife Poisoning ConvictionRead the Press Release
GREENEVILLE, Tenn. – Rickie D. Cloyd, 61, of Fall Branch, Tenn., was convicted of violating the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA) and the Migratory Bird Treaty Act related to his unlawful use of a restricted use pesticide. Cloyd was convicted following a bench trial in front of the Honorable Dennis H. Inman, U.S. Magistrate Judge, in April 2015 and was sentenced to pay a total of $5,000 in fines.
The case began as an investigation into the cause of death of numerous deceased animals found near Cloyd’s farm in Washington County, Tenn. The investigation revealed that Carbofuran, a restricted use pesticide marketed under the name Furadan, had been placed on corn baits in several locations around the Cloyd farm. Furadan is highly toxic to wildlife and is no longer available for commercial purchase. Furadan was once commonly used on crops such as alfalfa and tobacco, but was outlawed because of its toxicity. According to the evidence presented at trial, Cloyd used Furadan in an attempt to control pests but unintentionally caused the primary and secondary poisonings of a variety of animals, including several species of migratory birds.
This investigation was the result of the collaborative efforts of the U.S. Fish and Wildlife Service, Tennessee Wildlife Resources Agency, Tennessee Department of Agriculture, and Environmental Protection Agency, Criminal Investigation Division Assistant U.S. Attorney J. Christian Lampe represented the United States.
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East Tennessee Moonshiners SentencedRead the Press Release
GREENEVILLE, Tenn. – Jack Mayfield, Jr., 49, of Newport, Tenn., and James Carrol Hickman, 41, of Dandridge, Tenn., have each been convicted and sentenced for aiding and abetting in the illegal production of distilled spirits by a person who was not an authorized distiller (illegal production of “moonshine”).
In October 2014, Mayfield pleaded guilty to the moonshining charge and two counts of possessing a machine gun. On April 2, 2015, he was sentenced to serve 33 months in federal prison, to be followed by three years of supervised release.
Hickman was convicted in December 2014 following a two-day jury trial. On Apr. 21, 2015, Hickman was sentenced to serve 33 months in federal prison, to be followed by three years of supervised release. There is no parole in the federal system.
According to evidence presented at Hickman’s trial and during Mayfield’s sentencing hearing, Mayfield owned and operated a large-scale illegal moonshine production operation in the Carson Springs area of Cocke County. The operation included over fifteen, 400-gallon moonshine stills housed in two separate buildings, and a separate proofing room where the moonshine was processed into a finished product and packaged for sale. Mayfield employed numerous people to work at the operation, including co-defendants Hickman and Michael Steve Reece. In his plea agreement, Mayfield admitted that he had produced illegal moonshine at the site from at least January 2003 until a search warrant was executed at the property in April 2013.
Reece, who was also charged in this case, pleaded guilty in November 7, 2013. His sentencing is scheduled for May 19, 2015.
This investigation was the result of the collaborative efforts of the Tennessee Bureau of Investigation, Tennessee Alcoholic Beverage Commission, Tennessee Highway Patrol, and Cocke County Sheriff’s Department. Assistant U.S. Attorneys Suzanne Kerney-Quillen and J. Christian Lampe represented the United States.
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Corey Bruce Patrick Charged with Second Degree Murder Resulting from an Automobile Crash in the Great Smoky Mountains National ParkRead the Press Release
KNOXVILLE, Tenn. – On Apr. 21, 2015, Corey Bruce Patrick, 34, of Hurricane Mills, Tenn., pleaded guilty in U.S. District Court in Knoxville, to second degree murder resulting from an automobile crash involving alcohol and high-speed in the Great Smoky Mountains National Park. Patrick agreed to waive indictment and plead guilty to an information charging him with this offense.
The penalty for second degree murder is up to life in prison, a fine of up $250,000, a term of supervised release of up to five years, and a $100 special assessment. Patrick’s sentencing hearing is scheduled for 2:00 p.m., Thursday, Aug. 20, 2015, in U.S. District Court in Knoxville.
If the plea agreement is accepted by the court, Patrick and United States have agreed that he will be sentenced to serve 180 months in prison. The court will determine any fine amount, supervised release term, and restitution at the sentencing hearing.
According to facts contained in the plea agreement on file with U.S. District Court, in October 2014, Patrick drove the victim’s car at a high-rate of speed within the Great Smoky Mountain National Park, after drinking alcohol at the Ole Smoky Tennessee Moonshine distillery in Gatlinburg. In a text message sent from the victim’s cell phone at approximately 2:03 a.m., one-minute before the crash, the victim described Patrick’s driving as “hes driving fast and crazy.” At 2:04 a.m., witnesses to the crash called 911 and reported that Patrick hit a tree head-on. While attempting to remove him from the car, Patrick told rescue personnel that he had been drinking before the crash. The victim suffered multiple blunt force injuries from the crash which resulted in her death at the crash scene.
This investigation was handled by the National Park Service, Tennessee Highway Patrol, and Tennessee Bureau of Investigation. Assistant U.S. Attorney Brooklyn Sawyers represented the United States.
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Joyce Allen Sentenced to Serve A Total of 360 Months for Wire Fraud, Mail Fraud and Money Laundering Violations Related to Benchmark Capital, Inc.Read the Press Release
KNOXVILLE, Tenn. – On Apr. 20, 2015, Joyce Allen, 67, of Louisville, Tenn., was sentenced by the Honorable Thomas A. Varlan, Chief U.S. District Judge, to serve a total of 360 months in federal prison. Allen was immediately taken into custody by the U.S. Marshals Service following the sentencing hearing.
In addition to her prison sentence, Allen was ordered to pay $20,711,371.72 in restitution. Forfeiture of the same cash amount was also ordered by the court. Upon her release from prison, she will be under the supervision of U.S. Probation for three years.
After a September 2014 jury trial, Allen was found guilty of charges contained in a March 2014 superseding indictment against Allen and five other individuals associated with Benchmark Capital, Inc. (Benchmark), a Knoxville business owned by Charles D. Candler. The business purpose of Benchmark was to defraud investors by taking their funds in exchange for worthless and nonexistent investments, and paying a portion of the funds received to earlier investors under the guise of paying dividends, interest and mortgage payments, thereby encouraging new investors to entrust their funds to Benchmark. Details of the scheme are outlined in the superseding indictment on file with the U.S. District Court.
Allen was the president of J. Allen and Associates, Inc., based in Louisville, Tenn. Through this business, she induced individuals to pay funds to her in exchange for annuity investments with Benchmark, knowing that these funds would not be placed with Benchmark or any other company for investments, but converted to personal use by Allen and her other co-conspirators.
The other five individuals named in the superseding indictment pleaded guilty and have been previously sentenced by the U.S. District Court. Candler died in March 2012 before he could be charged in the conspiracy.
U.S. Attorney Bill Killian stated, “We are pleased with this lengthy sentence and the message it sends to others who use or consider using their positions of trust to defraud innocent victims. This case is a good example of how law enforcement agencies working together can bring individuals to justice for their criminal acts.”
"The U.S. Postal Inspection Service is committed to working with our law enforcement partners to ensure the U.S. Mails are not utilized as a tool to defraud victims in these types of Ponzi schemes” said Thomas Noyes, II, Postal Inspector in Charge of the Charlotte Division.
“IRS-Criminal Investigation is committed to unraveling complex fraud and money laundering schemes. We are proud to work with our law enforcement partners to investigate and prosecute individuals who attempt to enrich themselves by fraudulent means," stated Christopher A. Henry, Special Agent in Charge. “Today’s sentencing should send a clear message to those who would consider conducting or participating in these types of fraudulent financial transactions.”
“Money laundering and fraudulent investments have a devastating impact on the community. Those who steal money from victims who are attempting to save money for their future will pay a high price through the criminal justice system,” said Edward Reinhold, FBI Special Agent in Charge, Knoxville Division.
This case was investigated by the Internal Revenue Service – Criminal Investigation, U.S. Postal Inspection Service, and Federal Bureau of Investigation. Assistant U.S. Attorneys Frank M. Dale, Jr., and Jennifer Kolman represented the United States at trial.
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Hixson Tennessee Tax Preparer Indicted for Preparation of False Federal Income Tax ReturnsRead the Press Release
KNOXVILLE, Tenn.- On Apr. 7, 2015, a federal grand jury returned a nine-count indictment charging Kevin Mendell Walker, 44, of Hixson, Tenn., with aiding and assisting in the preparation and presentation of false federal income tax returns to the Internal Revenue Service (IRS).
Walker is the owner of K&R Enterprises, a tax preparation business located in Hixson, Tenn. According to the indictment on file with the U.S. District Court, from 2009 through 2012, he is alleged to have aided and assisted with the filing of nine false federal income tax returns, claiming deductions and credits for items and amounts the taxpayers were not entitled to claim, such as false education credits, false business expenses, and false hobby and investment expenses.
If convicted, Walker faces up to three years in prison and/or a fine of up to $250,000.
The case was investigated by IRS – Criminal Investigation. Assistant U.S. Attorney James Brooks represented the United States.
Members of the public are reminded that these are only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
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Knoxville Man Indicted on Two County of Sex Trafficking by Force, Fraud, and Coercion and Related ChargesRead the Press Release
KNOXVILLE, Tenn. – On Apr. 7, 2015, a federal grand jury returned a four-count indictment against Marcus Washington, 37, of Farragut, Tenn., charging him with two counts of sex trafficking by force, threats of force, fraud and coercion; conspiracy to possess with the intent to distribute a controlled substance; and possession with the intent to distribute a controlled substance.
The indictment, on file with the U.S. District Court, charges Washington with separate counts of sex trafficking by force, threats of force, fraud and coercion in relation to two victims. He is also charged with conspiring with others to possess with the intent to distribute, and the distribution of, oxycodone, a Schedule II controlled substance, and a substance containing a detectable amount of cocaine, also a Schedule II controlled substance. Lastly, Washington is charged with possession with the intent to distribute oxycodone.
Washington faces a mandatory minimum of 15 years in prison if convicted of either trafficking charge. Both narcotics charges carry a statutory maximum of 20 years in prison.
This case was investigated by the FBI. The Knox County Sheriff’s Office and Knox County Attorney General’s Office provided significant support in this investigation. The case is being prosecuted by Trial Attorney Nicholas Durham of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Brooklyn Sawyers of the U.S. Attorney’s Office for the Eastern District of Tennessee.
Members of the public are reminded that these are only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
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Cleveland Doctor Sentenced for Defrauding MedicareRead the Press Release
CHATTANOOGA, Tenn. – On Apr. 2, 2015, Dr. Raymond Sean Brown, 44, of McDonald, Tenn., was sentenced serve 28 months in prison by the Honorable Curtis L. Collier. In November 2014, Brown pleaded guilty to an information charging him with the use of misbranded drugs with the intent to defraud.
Brown was also ordered to forfeit $6.765 million U.S. currency seized from his bank accounts in December 2012 and pay an additional $717,000. Upon his release from prison, he will serve one year of supervised release.
The plea agreement on file with the U.S. District Court states that from May 2008 until December 2012, Brown fraudulently billed Medicare for Botox injections he did not give. During that time period, he received $7,482,968 in reimbursement from Medicare for Botox injections. According to the plea agreement, between 2008 and 2012, Brown did not purchase any FDA approved Botox and only 254 vials of non-FDA approved Botox, but billed Medicare for 17,766 vials. By pleading guilty, Brown admitted that he received the Botox in interstate commerce for delivery for pay which was misbranded and that he acted with intent to defraud or mislead.
“For medical care, patients rely on the honesty and integrity of their doctor. This defendant not only did not inject the drugs needed by the patients, but also fraudulently billed the Medicare system, which is funded by the taxpayers. This sentence and the additional financial penalties will deter other medical providers from actions such as were exhibited in this case,” said U.S. Attorney Bill Killian.
This investigation was conducted by agents with the U.S. Food and Drug Administration- Office of Criminal Investigation and U.S. Department of Health and Human Services- Office of Inspector General. Assistant U.S. Attorney Terra L. Bay represented the United States.
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Phillip Wayne Mullins Sentenced to Serve 151 Months for A-PVP “Gravel” Distribution ConspiracyRead the Press Release
GREENEVILLE, Tenn. – On Mar. 26, 2015, Phillip Wayne Mullins, 39, of Kingsport, Tenn., was sentenced by the Honorable R. Leon Jordan, U.S. District Judge, to serve 151 months in federal prison for his role in an extensive a-PVP (alpha-pyrrolidinopentiophenone) distribution conspiracy centered around the Sullivan County area. A-PVP is a synthetic drug which is commonly referred to on the street as “gravel.” Mullins will serve this federal sentence consecutive to a previously ordered state sentence for manufacturing methamphetamine.
According to the plea agreement on file with the district court clerk’s office, Mullins admitted that he conspired to distribute and was accountable for a conservative estimate of 5,500 grams of a-PVP, to a large number of customers and other dealers in and around the Eastern District of Tennessee. The plea agreement also provided a stipulation by Mullins that he had traded firearms for a-PVP.
U.S. Attorney William C. Killian stated, “Gravel is a very dangerous and harmful substance. We are pleased with this significant sentence because it reflects the seriousness of the crimes committed.”
Law enforcement agencies participating in the investigation which led to the indictment and subsequent conviction of Mullins include the Drug Enforcement Administration, Bureau of Alcohol, Tobacco and Firearms, Department of 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.
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Twenty-Two Individuals from Nine Counties and Three States Arrested for Conspiracy to Distribute Methamphetamine and Firearms Related ChargesRead the Press Release
CHATTANOOGA, Tenn. — On Mar. 25, 2015, 22 individuals from over nine counties, spanning southeast Tennessee, northern Georgia, and northern Alabama, were arrested for their roles in a large methamphetamine distribution conspiracy centered in Marion County, Tenn.
An investigation led by special agents and task force officers of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) along with detectives of the Marion County Tennessee Sheriff’s Office, resulted in two separate grand jury indictments, which include charges of conspiracy to distribute methamphetamine, distribution of methamphetamine, possession with intent to distribute methamphetamine, and possession of a firearm by prohibited people.
Details of the charges are outlined in two criminal indictments on file with the U.S. District Court for the Eastern District of Tennessee at Chattanooga. Those charged in the first indictment include: David Henderson, 45, of Wildwood, Ga.; Ronald Green Jr., 49, of Jasper, Tenn.; James Ray Pritchett, 36, of South Pittsburg, Tenn.; Dennis Reed, 44, of South Pittsburg, Tenn.; Steve Hankins, 58, of Jasper, Tenn.; Christopher Brian Janeway, 41, of South Pittsburg, Tenn.; Kevin, Denney, 40, of South Pittsburg, Tenn.; James Allen Sexton, 50, of Chattanooga, Tenn.; Kelly Nance, 34, of Jasper, Tenn.; Jason Boston, 35, of South Pittsburg, Tenn.; Charles Meeks, 41, of Tracy City, Tenn.; Michael Patterson, 40, of Philadelphia, Tenn.; and Robert Graham, 46, of Trenton, Ga.
Initial appearances for individuals listed above who were arrested on Mar. 25, 2015, are scheduled for 3:00 p.m., Thursday, Mar. 26, 2015, in U.S. District Court in Chattanooga, before the Honorable Susan K. Lee, U.S. Magistrate Judge.
Those charged in the second indictment include: Monica Sha Newman, 38, of Jasper, Tenn.; Mark Anthony Johnson, 33, of Tracy City, Tenn.; Terry Jones, 53, of Crandall, Ga.; Ronald Terry Wilmore, 46, of McMinnville, Tenn.; Tiffany Hadder, 32, of Gruetli Laauger, Tenn.; Nathan Carlton, 40, of Stevenson, Ala.; Rodney Craig Akins, 49, of Dunlap, Tenn.; Jamie Harris, 43, of Whiteside, Tenn.; and Jeremy Toro, 40, of Tracy City, Tenn.
Initial appearances for these individuals, who were arrested on Mar. 25, 2015, are scheduled for 2:00 p.m., Thur. Mar. 26, 2015 in U.S. District Court before the Honorable William B. Carter, U.S. Magistrate Judge. Eight of the individuals charged in these indictments are already in custody on other charges and will have initial appearances at later dates.
In addition to ATF and the Marion County Tennessee Sheriff’s Office, state and local law enforcement agencies who assisted with the arrests include: the Tennessee Bureau of Investigation; Tennessee Highway Patrol; Dade County Georgia Sheriff’s Office; Grundy County Tennessee Sheriff’s Office; Jackson County Alabama Sheriff’s Office; Loudon County Tennessee Sheriff’s Office; Murray County Georgia Sheriff’s Office; Sequatchie County Tennessee Sheriff’s Office; Warren County Tennessee Sheriff’s Office; Monteagle Tennessee Police Department; and Chattanooga Tennessee Police Department. Assistant U.S. Attorney Terra Bay will 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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Johnson City Resident Charles Randall Whitson Sentenced to Serve 87 Months in Federal Prison for Role in Drug ConspiracyRead the Press Release
GREENEVILLE, Tenn. – Charles Randall Whitson, 54, of Johnson City, Tenn., was sentenced on Mar. 16, 2015, by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 87 months in federal prison. Whitson was previously convicted of conspiracy to distribute, and possess with the intent to distribute, 280 grams or more of a mixture and substance containing a detectable amount of cocaine base (“crack”). There is no parole in the federal system.
For approximately three years, Whitson participated in a large-scale crack cocaine conspiracy. He served as a street-level distributor and facilitator, repeatedly selling crack cocaine and arranging deals for others. As part of his plea agreement on file with the U.S. District Court, Whitson admitted to being personally responsible for at least 280 grams, but less than 840 grams, of crack cocaine. Whitson often used his residence as a place from which to sell crack cocaine, and let his coconspirators do the same.
As part of the investigation, law enforcement conducted seven different controlled drug transactions with members of this conspiracy. On three of those occasions, Whitson himself sold crack cocaine to individuals working with and acting under the supervision of law enforcement agents and officers.
Two others have previously been sentenced as part of this conspiracy. Michelle Nicole Lane, 33, of Blountville, Tenn., was sentenced to serve 132 months in prison. Cedric Nickose Carr, 29, of Chattanooga, Tenn. was sentenced to serve 120 months.
This case was the product of cooperation between the Johnson City Police Department, and Federal Bureau of Investigation. Assistant U.S. Attorney Nick Regalia represented the United States.
Federal Jury Convicts Michael O. Brown on Drug Conspiracy and Distribution ChargesRead the Press Release
CHATTANOOGA, Tenn. - Following a four day trial in U.S. District Court, Chattanooga, Tenn., a jury convicted Michael O. Brown, of Fayetteville, Tenn., of conspiracy to distribute and distribution of cocaine and cocaine base (crack).
Sentencing is set for 9:00 a.m., Jun. 15, 2015, in U.S. District Court in Chattanooga. Brown faces a sentence of life in prison for the conspiracy charge and up to 30 years in prison for the distribution charge.
Evidence presented at trial showed that a group of 15 men and women conspired to distribute and possess with intent to distribute five kilograms or more of cocaine and 280 grams or more of cocaine base (crack). The jury saw a video of Brown selling crack cocaine to a confidential source and heard recorded telephone calls in which Brown is heard ordering cocaine from a codefendant. All of the 14 other individuals charged in the case pleaded guilty and have been sentenced. Brown was the only one to go to trial.
Law enforcement agencies participating in the joint investigation which led to indictment and subsequent conviction of Brown and his codefendants included the Drug Enforcement Administration, Tennessee Bureau of Investigation, Franklin County Sheriff’s Office, Lincoln County Sheriff’s Office and Winchester Police Department. Assistant U.S. Attorney Terra L. Bay represented the United States at trial.
Knoxville Woman and Others Indicted for Operating “Pill Mills" in Knox and Adjacent CountiesRead the Press Release
KNOXVILLE, Tenn. - A federal grand jury in Knoxville has returned indictments charging multiple individuals for their roles in the proliferation of several “pill mills” in Knox and adjacent counties over the past few years. The primary defendant in the investigation, Sylvia Hoffstetter, 51, of Knoxville, is charged with conspiring with other pain clinic operators or sponsors of pill shopping organizations to distribute oxycodone, and to launder the proceeds generated by those clinics.
Hoffstetter, who was arraigned on Mar. 10, 2015, before U. S. Magistrate Judge C. Clifford Shirley, Jr., is accused of being responsible for the distribution of a quantity of oxycodone sufficient to generate clinic revenue of at least $17.5M between April 2011 and March 2015. She was ordered to be jailed upon the government’s motion until a detention hearing is conducted on Friday, Mar. 13, 2015. Several others were arrested on Tuesday and made their initial appearances before the court. Other arrests are pending.
If convicted as charged, each defendant faces up to 20 years in prison and a fine of up to $1M on the drug trafficking charge and up to another 20 years and a fine of up to $500,000 on the money laundering charges. There is no parole in the federal system.
U.S. Attorney William C. Killian and FBI Special Agent in Charge (SAC) Edward Reinhold announced that this indictment is the result of an investigation by the FBI High Intensity Drug Trafficking Area (HIDTA). The FBI HIDTA is composed of FBI special agents and investigators assigned to the task force by Blount County Sheriff James Berrong, Clinton Police Chief Rick Scarborough, Harriman Police Chief Randy Heidle, Knox County Sheriff Jimmy “J. J.” Jones, Knoxville Police Chief David Rausch, Loudon County Sheriff Tim Guider, and Roane County Sheriff Jack Stockton. SAC Reinhold also expressed his appreciation to Jefferson County Sheriff Bud McCoig and Kingston Police Chief Jim Washam for providing assistance in the arrests of some of these defendants.
Assistant U.S. Attorneys Tracy L. Stone and Anne-Marie Svolto will represent the United States in the prosecution of these cases.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
The HIDTA program enhances and coordinates drug control efforts among local, state, and federal law enforcement agencies. The program provides agencies with coordination, equipment, technology, and additional resources to combat drug trafficking and its harmful consequences in critical regions of the United States. In the Eastern District of Tennessee, HIDTA funds DEA and FBI led drug task forces in Johnson City, Knoxville, and Chattanooga, as well other initiatives to reduce drug crime in the HIDTA. For more information please visit www.whitehouse.gov/ondcp/high-intensity-drug-trafficking-areas-program .
The investigation is also part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (“OCDETF”) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Leader of Johnson City Drug Conspiracy Sentenced to 20 Years in PrisonRead the Press Release
GREENEVILLE, Tenn. – On Mar. 9, 2015, Demetrius Antwan Dalton, 35, of Atlanta, Ga., was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 240 months in federal prison. Dalton was previously convicted of conspiracy to distribute, and to possess with the intent to distribute, 280 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, Dalton operated a massive conspiracy in which he and numerous others sold kilogram quantities of crack cocaine throughout Johnson City. To accomplish this, Dalton 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, he worked with countless facilitators, couriers, and distributors to sell his product.
Law enforcement used a variety of individuals to conduct controlled drug transactions with members of the instant conspiracy. Several of those transactions involved Dalton himself. Ultimately, agents received court authorization to monitor the phone calls of members of this conspiracy. The resulting wiretaps produced phone calls in which Dalton and his coconspirators were repeatedly heard arranging crack cocaine deals, discussing drug prices and quantities, and joking about the addiction suffered by their customers.
This 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.
A total of 21 individuals were charged as a result of this investigation. Those previously sentenced include:
Tavares Lashaun Dalton, 36, of Covington, Ga., 240 months; Marcus Lavoya Holliman, 36, of Atlanta, Ga., 210 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, Gia., 120 months; Uhamma Castillo Delgado, II, 24, of Johnson City, Tenn., 120 months; Demario Jenard Serchion, 29, of Atlanta, Ga., 77 months; and Cody Alan Sherrill, age 22, of Jonesborough, Tenn., 41 months. All others are awaiting prosecution or sentencing.
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.
Ray Mubarak, Dianna Mubarak, and Blythe Bond Sanders, III Arrested and Arraigned in Bank Fraud SchemeRead the Press Release
KNOXVILLE, Tenn. - Ray M. Mubarak, 54, of Knoxville, Tenn., Dianna Mubarak, 52, of Knoxville, Tenn., and Blythe Bond Sanders, III, 35, of Norris, Tenn., were arrested in Knoxville today by federal agents of the Internal Revenue Service - Criminal Investigation (IRS - CI) and Federal Bureau of Investigation (FBI) on arrest warrants based upon charges involving conspiracy and bank fraud.
Following their surrender to federal authorities, an initial appearance was held in U.S. District Court in Knoxville before the Honorable H. Bruce Guyton, U.S. Magistrate Judge, at which time the indictment was unsealed and the defendants were apprised of the charges. All three pleaded not guilty to the charges. Trial has been set for May 5, 2015, in U.S. District Court, Knoxville.
The details of the charges are outlined in the 39-page indictment which is on file with the U.S. District Court for the Eastern District of Tennessee at Knoxville.
The indictment alleges that Ray M. Mubarak, Dianna Mubarak, and Sanders engaged in a conspiracy to defraud five banks spanning from 2007 through 2011. The total face value of the fraudulent loans exceeded $6.7 million. Ray M. Mubarak was also charged with multiple counts of engaging in unlawful monetary transactions greater than $10,000 in bank fraud proceeds.
The investigation leading to these charges was conducted by IRS - CI and the FBI. Assistant U.S. Attorney Matthew T. Morris represents the United States.
Members of the public are reminded that these are only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
Angela Davis Sentenced to Six Months in Prison Followed by Six Month of Home Detention for Filing False Tax ReturnsRead the Press Release
KNOXVILLE, Tenn. – On Mar. 4, 2015, Angela Davis, 39, of Knoxville, Tenn., was sentenced by the Honorable Pamela Reeves, U.S. District Judge, to serve six months in prison followed by six months home detention, a year on supervised release and $61,276.00 in restitution to the Internal Revenue Internal Revenue Service (IRS). Davis pleaded guilty in July 2014 to a federal grand jury indictment charging her with filing false tax returns.
The indictment and subsequent conviction of Angela Davis was the result of an investigation conducted by IRS - Criminal Investigation, Knoxville Police Department and U.S. Postal Inspection Service. Assistant U.S. Attorney Jennifer Kolman represented the United States.
Hardee’s Shooter Thompson Pleads Guilty to Robbery and Gun ChargesRead the Press Release
KNOXVILLE, Tenn. – On Mar. 2, 2015, Stephen Thompson, 25, of Knoxville, Tenn., pleaded guilty in U.S. District Court for the Eastern District of Tennessee at Knoxville, to two counts of Hobbs Act robbery and one count of discharging a firearm during the robbery. Sentencing was set for 10:00 a.m., July 8, 2015, in U.S. District Court in Knoxville.
Pursuant to the terms of his plea agreement, Thompson agreed to a term of 30 years in prison, to be followed by a term of supervised release, and he will be ordered to pay restitution. There is no parole in the federal system. The agreed upon sentence is subject to the approval of Chief U.S. District Judge Thomas A. Varlan.
According to facts outlined in his plea agreement on file with the U.S. District Court, Thompson admitted to having committed a total of 13 robberies between March 2009 and October 2014. Notably, during every robbery he committed, Thompson either brandished a real firearm or an object that appeared to be a real firearm and, during the November 2009 robbery of a Hardee’s restaurant, Thompson shot a victim employee in the chest before fleeing with money from the restaurant.
Specifically, Thompson robbed the following locations on the following dates: (1) on Mar. 2, 2009, Thompson robbed the Sports Seasons, located on Kingston Pike in Knoxville; (2) on Sept. 14, 2009, Thompson robbed the Kentucky Fried Chicken restaurant, located on North Cedar Bluff Road in Knoxville; (3) on Oct. 9, 2009, Thompson robbed the Chuck-E-Cheese restaurant, located on Kingston Pike, in Knoxville; (4) on Nov. 9, 2009, Thompson robbed the Pizza Hut restaurant, located on Kingston Pike, in Knoxville; (5) on Nov. 10, 2009, Thompson robbed the Hardee’s restaurant, located on Western Avenue, in Knoxville; (6) on Feb. 14, 2010, Thompson robbed the Captain D’s restaurant, located on Merchants Drive, in Knoxville; (7) on Jul. 21, 2010, Thompson robbed the Hardee’s restaurant, located on Chapman Highway, in Knoxville; (8) on Aug. 5, 2010, Thompson robbed the Kentucky Fried Chicken restaurant, located on North Broadway, in Knoxville; (9) on Oct. 17, 2010, Thompson robbed the Pizza Hut restaurant, located on Cedar Lane, in Knoxville; (10) on May 16, 2013, Thompson robbed the Wendy’s restaurant, located on Kingston Pike, in Knoxville; (11) on Sept. 3, 2013, Thompson robbed the Wendy’s restaurant, located on North Broadway, in Knoxville; (12) on Aug. 11, 2014, Thompson robbed the Petro’s Chili & Chips restaurant, located on Kingston Pike, in Knoxville; and (13) on Oct. 25, 2014, Thompson robbed the Subway restaurant, located on North Cedar Bluff Road in Knoxville.
U.S. Attorney William C. Killian said, “This individual thought he had avoiding detection of committing many serious violent crimes over the course of about five years, but the members of the FBI’s Safe Streets Task Force were determined to solve these cases and bring Thompson to justice. I commend their perseverance and dedication.”
FBI Special Agent in Charge, Knoxville Division, Edward Reinhold stated, “As this five year investigation demonstrates, memories will not fade and freedom is temporary for those who place our community in danger. The Knoxville Police Department and the Knox County Sheriff’s Office devote resources to the Safe Streets Task Force, acting as a force multiplier. The FBI will continue to pool resources and work jointly with city, county, and state law enforcement to ensure that violent crime does not go unchecked in East Tennessee.”
This case was the result of an investigation by the FBI Safe Streets Task Force, which consists of FBI Special Agents, Knox County Sheriff’s Deputies, and Knoxville Police Department Officers. Assistant U.S. Attorney Kelly A. Norris represented the United States.
Ten Individuals Indicted in Stolen Identity Tax Refund SchemeRead the Press Release
GREENVILLE, Tenn. – Ten individuals were indicted on Feb. 10, 2015, for conspiracy to commit wire fraud, theft of public money and money laundering conspiracy, in a 10-count indictment handed down by a federal grand jury in Greenville, Tenn. Those indicted include:
Eugene Carl Kotelman, 39, of Burtchville, Mich.; Jamie Marie Lowery, 38, of Port Huron, Mich.; Brian Keith Elliott, 49, of Greenville, Tenn.; Bernard Erwin Goewey, 47, of Afton, Tenn.; Michelle Goewey, 44, of Afton, Tenn.; Timothy Ray Groh, 46, of Port Huron, Mich.; Jake Marshall McKelvey, 53, of Atlanta, Mich.; Gerald Kenneth Orshal, III, 56, of Crystal River, Fla.; Amy Rose Peters Thompson, 33, Port Huron, Mich.; and Terri Lynn Worley, 52, of Port Huron, Mich.
The indictment on file with the U.S. District Court alleges that between January 2008 and December 2012, these individuals conspired to obtain money from the Internal Revenue Service (IRS) by submitting fraudulent federal income tax returns that claimed false federal income tax refunds. As part of the scheme, they submitted, or caused to be submitted, a total of 150 federal income tax returns claiming false tax refunds of $1.2 million. The false returns were filed using stolen Personal Identification Information (PII) that was used without the individual’s authorization.
Eugene Kotelman is currently incarcerated with the Michigan Department of Corrections.
On Feb. 25, 2015, Jamie Lowery and Jake McKelvey were arrested in Charlotte, N.C.; Amy Peterson, Timothy Groh and Teri Worley were arrested in Detroit, Mich.; Gerald Orshal was arrested in Tampa, Fla.; and Brian Elliott, Michelle Goewey and Bernard Goewey were arrested in Greeneville, Tenn. They appeared in U.S. District Court before U.S. Magistrate Judge Dennis H. Inman in Greenville, Tenn., on Feb. 25, 2015.
The case was investigated by Special Agents with the IRS–Criminal Investigation. Assistant U.S. Attorney Helen Smith represents the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
Area Woman Sentenced for Crack Cocaine ConspiracyRead the Press Release
GREENEVILLE, Tenn. – Michelle Nicole Lane, 33, of Blountville, Tenn., was sentenced on Feb. 23, 2015, by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 132 months in federal prison. Lane pleaded guilty in October 2014 to conspiracy to distribute, and to possess with the intent to distribute, 280 grams or more of a mixture and substance containing a detectable amount of cocaine base (“crack”). There is no parole in the federal system.
Over the course of roughly three years, Lane managed a large-scale crack cocaine conspiracy. In so doing, she was responsible for distributing multi-kilogram quantities of crack cocaine in the Tri-Cities area. As part of her part of her guilty plea, Lane admitted to being personally responsible for at least 840 grams, but less than 2,800 grams, of crack cocaine.
Lane managed a network of coconspirators who assisted in distributing her crack cocaine. These individuals included couriers, runners, and street-level dealers. Lane directed the actions of such individuals while she received the majority of the reward. As part of her conduct, Lane actively took steps to thwart law enforcement and skirt federal laws. These efforts failed and caused her to receive mandatory minimum sentences in federal prison.
As part of the investigation, law enforcement conducted seven different controlled drug transactions with members of Lane’s conspiracy. On one of those occasions, Lane and a codefendant sold crack cocaine to confidential informants acting under the supervision of agents and officers.
This case was the product of cooperation between the Johnson City Police Department and Federal Bureau of Investigation. Assistant U.S. Attorney Nick Regalia represented the United States.
Vice President Biden and Attorney General Holder Honor Officer Andrew Michael Keith with Medal of ValorRead the Press Release
WASHINGTON, D.C. - Vice President Joe Biden and Attorney General Eric Holder today awarded the Public Safety Officer Medal of Valor to Officer Andrew Michael Keith of the Knoxville Police Department, who exhibited exceptional courage in saving and protecting others and whose heroic actions were above and beyond the call of duty.
Officer Keith receives the award for his heroic and quick reaction on March 13, 2012 to a Tennessee Highway Patrol car on fire after a collision with a truck. The car’s driver, Sgt. Lowell Russell, was unconscious and trapped in the vehicle.
When Officer Keith reached the scene, he radioed dispatch for the fire department to respond and used his shirt to beat back the flames while trying to reach the injured trooper. When he was able to make contact, he positioned Trooper Russell to keep the flames away from his body, while two citizens assisted in cutting Trooper Russell from his seatbelt. After freeing the trooper, Officer Keith then took control of the scene and kept people away from the vehicle, which exploded from a discharge of ammunition within. Due to the diligence of Officer Keith and the concerned citizens, Sgt. Russell survived the accident and his injuries and began rehabilitation a few weeks later.
United States Attorney William C. Killian stated, “Officer Keith exhibited remarkable valor, risking his own life to save the life of Sgt. Russell, and to protect bystanders from harm. He acted in the finest tradition of law enforcement on that night, reacting quickly to serve and protect his fellow citizens.”
At the ceremony, Attorney General Holder remarked, “These are all exceptional individuals. Every one of them deserves our deepest gratitude and boundless respect. Yet even among the outstanding field of public servants who perform these critical responsibilities, day in and day out – in communities across the country – there are some who stand out. And today, with these prestigious medals, we recognize these exceptional few for extraordinary valor – above and beyond the call of duty.”
The Public Safety Officer Medal of Valor, authorized by the Public Safety Officer Medal of Valor Act of 2001, is the highest national award for valor presented to a public safety officer. The medal is awarded to public safety officers who have exhibited exceptional courage, regardless of personal safety, in the attempt to save or protect human life. Including today’s awardees, a total of 95 medals have been presented since the first recipients were honored in 2003.
The Medal of Valor is awarded by the President of the United States, or his designee, to public safety officers cited by the Attorney General. Public safety officers are nominated by the chiefs or directors of their employing agencies and recommended by the Medal of Valor Review Board. The Attorney General has designated the U.S. Department of Justice’s department’s Office of Justice Programs (OJP) to serve as the federal point of contact for the Public Safety Medal of Valor.
More information about the award, the Medal of Valor Review Board members, and the nomination process is available at:www.ojp.usdoj.gov/medalofvalor.
Victor Verdin-Reyes Sentenced to 216 Months on Cocaine Conspiracy ChargesRead the Press Release
GREENEVILLE, Tenn. – Victor Verdin-Reyes, 49, of Johnson City, Tenn., was sentenced on Feb. 10, 2015, by the Honorable R. Leon Jordan, U.S. District Court Judge, to a federal prison term of 216 months, for his leadership role in a cocaine conspiracy centered in and around the Johnson City area.
According to the plea agreement signed and filed with the U.S. District Court Clerk’s Office, Verdin-Reyes stipulated that he conspired to distribute between 5 to 15 kilograms of cocaine in the Eastern District of Tennessee and elsewhere. Verdin-Reyes admitted that he had been selling cocaine since approximately the year 2000. He sold cocaine at his residence in Johnson City, Tenn., and also maintained a “stash house” located in Johnson City. Verdin and/or his wife, Ericka Jean Verdin, 45, of Johnson City, Tenn., sold various quantities of cocaine to an individual working on behalf of law enforcement on approximately 10 separate occasions during the period of the investigation. Ericka Jean Verdin is currently scheduled to be sentenced in the same case on Mar. 12, 2015.
On Feb. 9, 2014, law enforcement officers arrested Verdin-Reyes and his cocaine source of supply, Esteban Delgado Camacho, 48, of Weaverville, N.C., as they were conducting a drug deal involving a quarter kilogram of cocaine at the stash house maintained by Verdin-Reyes in Johnson City, Tenn.
A subsequent search warrant executed at the primary residence of Verdin-Reyes resulted in the seizure of an additional ounce of cocaine, digital scales, cutting agents, money order and Western Union receipts, $37,500.00 in U.S. currency and a .9mm handgun with a loaded magazine.
Another search warrant executed at Camacho’s residence in North Carolina resulted in the seizure of another approximate quarter kilogram of cocaine, an approximate ounce of crack cocaine, multiple firearms, digital scales, and over $41,000 in U.S. currency. Camacho was previously sentenced to serve 121 months for his role as the source of supply for Verdin-Reyes and for possessing firearms in furtherance of his cocaine trafficking.
Law enforcement agencies participating in the investigation which led to the indictment and subsequent conviction of Verdin-Reyes include the Tennessee Bureau of Investigation, Johnson City Police Department, First District Drug Task Force, Department of Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, Washington County Sheriff’s Office, and Drug Enforcement Administration (in Tennessee and North Carolina). Assistant U.S. Attorney Wayne Taylor represented the United States.
Ronald Randolph Radford Sentenced to 15 Years in Prison for Distributing Child PornographyRead the Press Release
GREENEVILLE, Tenn.- Ronald Randolph Radford, 68, of Johnson City, Tenn., was sentenced on Feb. 9, 2015, to serve 15 years in prison followed by a 10 year term of supervised release with special conditions of release, by the Honorable J. Ronnie Greer, U.S. District Judge for the Eastern District of Tennessee. The sentence was the result of a guilty plea by Radford on Aug. 14, 2014, to a federal grand jury indictment charging him with distributing, receiving, and possessing child pornography. Radford has been in federal custody since his arrest on Apr. 17, 2014.
The indictment and subsequent conviction of Radford was the result of an investigation conducted by the Federal Bureau of Investigation, Tennessee Bureau of Investigation, and Johnson City Police Department. Assistant United States Attorney Helen Smith represented the United States.
At sentencing, Judge Greer noted the seriousness of the offense Radford committed, the high image count of Radford's child porn collection, the need to promote respect for the law, the need to adequately deter such offenses in the general public, the need to protect the public, and Radford's personal history and characteristics.
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 United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), 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.
Area Man Sentenced for Drug and Gun OffensesRead the Press Release
GREENEVILLE, Tenn. – Anthony Douglas Williams, 28, of Greeneville, Tenn., was sentenced on Feb.10, 2015, by the Honorable R. Leon Jordan, U.S. District Court Judge, to serve 286 months in federal prison for his conviction on charges of possession with intent to distribute crack cocaine, and knowingly using and carrying a firearm during and in relation to a drug trafficking crime. There is no parole in the federal system.
In February 2014, members of the Johnson City Police Department came upon Williams after he had been involved in a traffic accident on Interstate 26. Upon questioning, and after attempts by Williams to provide false identifying information, officers confirmed Williams’s identity and the existence of several outstanding warrants for his arrest. When law enforcement then proceeded to take Williams into custody, a struggle ensued in which Williams tried to gain control of one of the officer’s guns. Williams was eventually subdued and placed under arrest.
Thereafter, a search of Williams uncovered two firearms, accompanying ammunition, approximately 16.32 grams of crack cocaine, approximately 8.90 grams of powder cocaine, 92 dihydrocodeinone pills, and several hundred dollars. A subsequent search of Williams’s vehicle unrevealed a third firearm, approximately 14.175 grams of marijuana, and four digital scales.
This case was the product of cooperation between the Johnson City Police Department, and Bureau of Alcohol, Tobacco, Firearms, and Explosives. 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.
Final Two Defendants Plead Guilty in International Counterfeit Currency RingRead the Press Release
All 13 defendants have pleaded guilty in $86 million counterfeiting scheme
ALEXANDRIA, Va. – Ofra Borohov, 45, and Boaz Borohov, 44, a married couple from Tel Aviv, Israel, pleaded guilty today to RICO conspiracy involving multiple acts of counterfeiting of U.S. currency and money structuring.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Joseph P. Clancy, Acting Director of the United States Secret Service, made the announcement after the pleas were accepted by U.S. District Judge Liam O’Grady.
“This counterfeiting ring used sophisticated techniques to mimic the security and design features of U.S. currency and created over $86 million in counterfeit bills,” said U.S. Attorney Boente. “I want to commend the Secret Service and its law enforcement partners for aggressively investigating this conspiracy and supporting the prosecution of these 13 defendants.”
“The conclusion of this case highlights the Secret Service’s investigative prowess and ability to detect one of the most prolific counterfeit notes in history,” said Secret Service Acting Director Clancy. “This investigation joins a long list of successful counterfeit suppressions over our 149 year history. We will continue to work closely with our network of law enforcement partners to combat criminal enterprises and protect the Nation’s financial infrastructure.”
According to court documents filed in this case, the Borohov’s participated in a criminal enterprise that engaged in multiple acts involving counterfeiting of U.S. currency and money structuring. Ofra and Boaz came to the United States from Israel in March 2014 to assist in the production and manufacture of counterfeit $100 notes at a warehouse in Cherry Hill, New Jersey, purchased by Itzhak Loz and Ronin Fakiro, two co-conspirators. Over $2.56 million in counterfeit currency was manufactured at the warehouse where the Borohov’s were arrested on May 28, 2014, when the U.S. Secret Service executed a search warrant there.
All 13 defendants named in the original indictment have pleaded guilty and are awaiting sentencing. The defendants are listed in the indictment in the following order:
Defendant Name & Age
Residence
Arrest Location & Date
Status
Itzhak Loz, 46
Rison Lezion, Israel
Jamaica, New York
May 28, 2014Pleaded guilty Jan. 20, 2015. Sentencing May 15, 2015
Ronin Fakiro, 45
Rison Lezion, Israel
Jamaica, New York
May 28, 2014Pleaded guilty Jan. 20, 2015. Sentencing May 8, 2015.
Boaz Borohov, 43
Tel Aviv, Israel
Cherry Hill, New Jersey
May 28, 2014Pleaded guilty Feb. 6, 2015. Sentencing May 22, 2015.
Ofra Borohov, 45
Tel Aviv, Israel
Cherry Hill, New Jersey
May 28, 2014Pleaded guilty Feb. 6, 2015. Sentencing May 22, 2015.
Arkadiy Bangiyev, 37
Rego Park, New York
Rego Park, New York
May 28, 2014Pleaded guilty Jan. 20, 2015. Sentencing May 1, 2015.
Eduard Bangiyev, 39
Forest Hills, New York
Scranton, Pennsylvania
May 28, 2014Pleaded guilty Jan. 20, 2015. Sentencing May 1, 2015.
Johnny Elegante Lee, 44
Glen Oaks, New York
Miami, Florida
June 1, 2014Pleaded guilty Sept. 16, 2014. Sentencing on Feb. 20, 2015.
Tarell Lavon Johnson, 26
Lynbrook, New York
Lynbrook, New York
May 28, 2014Pleaded guilty Oct. 23, 2014. Sentencing Feb. 27, 2015.
Craig Johnson, 48
Douglasville, Georgia
Douglasville, Georgia
June 13, 2014Pleaded guilty Oct. 1, 2014. Sentencing Feb. 13, 2015.
Shannon Lamont Smith, 38
Woodstock, Georgia
Atlanta, Georgia
May 28, 2014Pleaded guilty Sept. 26, 2014. Sentencing Feb. 27, 2015.
Fredrick Barrett, 32
Hempstead, New York
Hempstead, New York
May 28, 2014Pleaded guilty Oct. 24, 2014. Sentencing Feb. 27, 2015.
Ramel Epps, 23
Freeport, New York
Freeport, New York
May 28, 2014Pleaded guilty Oct. 20, 2014. Sentencing Feb. 20, 2015.
Brattie Guerra, 22
Freeport, New York
Freeport, New York
May 28, 2014Pleaded guilty Oct. 3, 2014. Sentencing Feb. 20, 2015.
This case was investigated by the United States Secret Service. Assistant U.S. Attorneys Kimberly R. Pedersen and Gordon D. Kromberg are prosecuting the case.A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14CR206.
Bradley County Man Sentenced to 262 Months for Aiding and Abetting the Distribution of MethamphetamineRead the Press Release
CHATTANOOGA, Tenn. – Timothy Joe Swallows, 39, of Cleveland, Tenn., was sentenced on Feb. 6, 2015, by the Honorable Curtis L. Collier, U.S. District Judge, to serve 262 months in prison. Swallows pleaded guilty in July 2014 to a federal indictment charging him with, among other things, aiding and abetting the possession with intent to distribute 50 grams or more of methamphetamine (actual).
According to the information on file with the U.S. District Court, on June 17, 2012, Timothy Swallows was taken into custody after a routine traffic stop in Bradley County revealed he was driving on a revoked license. The passenger in the vehicle, Amber Flowers, was also taken into custody on an outstanding warrant for her arrest. During the stop, two large bags of methamphetamine were recovered from Flowers. A subsequent search of the vehicle revealed syringes, digital scales, seven cell phones, cut straws, and $1,404 in cash. The amount of methamphetamine seized totaled 84.7 grams with a 94.3% purity level. Swallows stated he was helping Flowers sell the methamphetamine that was seized following the traffic stop. Flowers previously pleaded guilty to the same offense and was sentenced to serve 77 months in prison.
Swallows was classified as a “career offender” under federal law because he had four prior drug trafficking convictions, including three separate convictions for distributing methamphetamine in Bradley County, Tennessee within the last 10 years. His federal sentence reflected his prior state convictions and the risk of harm his conduct posed to society. Judge Collier recommended that Swallows participate in a drug treatment program while he is in prison.
The indictment and subsequent conviction of Swallows was the result of an investigation conducted by the Drug Enforcement Administration and Bradley County Sheriff’s Office. Assistant U.S. Attorney Michael D. Porter represented the United States.
Rhea County Woman Sentenced to Eleven Years and Six Months for Manufacturing Methamphetimine in Home with Five ChildrenRead the Press Release
Misty Angel has two prior state felony convictions for the same conduct
CHATTANOOGA, Tenn. - Misty Angel, 36, of Dayton, Tenn., was sentenced to serve 138 months in prison by the Honorable Curtis L. Collier, U.S. District Judge. Angel pleaded guilty in April 2014 to a federal indictment charging her with manufacturing methamphetamine.
According to the information on file with the U.S. District Court, in October 2013, after receiving complaints of methamphetamine activity, officers from the Rhea County Sheriff’s Department responded to Angel’s residence and caught her in the process of making methamphetamine using the “one-pot” method. The “one-pot” methamphetamine manufacturing process is inherently dangerous, involving several toxic, flammable, and explosive chemicals. She was high on methamphetamine at the time and heating a “one-pot” methamphetamine laboratory with a hair dryer, creating further danger. Chemicals and equipment used in the manufacturing process were found inside and outside the residence and officers encountered a strong chemical odor when they approached the trailer. Five children, ages 17, 14, 13, 12, and 4 years old, were present and were taken to the Rhea County Medical Center for decontamination. Tennessee Department of Children’s Services removed the children from the home.
Angel was classified as a “career offender” under federal law because she had two prior drug felony convictions, both involving methamphetamine and both involving her prior manufacture of the drug in the presence of her children. Her federal sentence reflected her prior state convictions and the substantial risk of harm that her conduct posed to her children. Judge Collier also recommended that Angel participate in a drug treatment program while she is in prison.
The indictment and subsequent conviction of Angel was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, and Firearms, Rhea County Sheriff’s Department, Tennessee Methamphetamine and Pharmaceutical Task Force, and Tennessee Department of Children’s Services. Assistant U.S. Attorney Gregg L. Sullivan represented the United States
Johnson City Man Convicted of Crack Cocaine ConspiracyRead the Press Release
GREENEVILLE, Tenn. – Following a two-day trial in U.S. District Court, on Feb. 4, 2015, Robert Nelson Racanelli, 26, of Johnson City, Tenn., was convicted of conspiracy to distribute, and possess with the intent to distribute, 280 grams or more of crack cocaine. Sentencing is set for 9:00 a.m., June 8, 2014. Racanelli faces a mandatory minimum 10 years in prison up to life. There is no parole in the federal system.
From March 2012, to April 2013, Racanelli conspired with various other persons to distribute, and possess with the intent to distribute, 280 grams or more of crack cocaine. These individuals included several out-of-state drug traffickers from Atlanta, Ga. During this time, Racanelli obtained multi-ounce quantities of crack cocaine from his coconspirators and then sold those drugs throughout Johnson City. On two occasions individuals working on behalf of law enforcement purchased crack cocaine from Racanelli.
As the investigation progressed, agents received court authorization to monitor the phone calls of members of this conspiracy. The resulting wiretaps produced phone calls in which Racanelli was repeatedly heard ordering crack cocaine, arguing about prices and quantities, discussing his drug sales, and joking about the addiction suffered by his customers.
This long term 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.
A total of 21 individuals were charged as part of this investigation. Those previously sentenced include:
Tavares Lashaun Dalton, 36, of Covington, Ga., 240 months; Marcus Lavoya Holliman, 36, of Atlanta, Ga., 210 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; Uhamma Castillo Delgado, II, 24, of Johnson City, Tenn.,120 months; Demario Jenard Serchion, 29, of Atlanta, Ga., 77 months; and Cody Alan Sherrill, 22, of Jonesborough, Tenn.,41 months.
All others are awaiting prosecution or sentencing.
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.
Christopher Ryan Jenkins Sentenced for Methamphetamine Manufacturing ConspiracyRead the Press Release
KNOXVILLE, Tenn. – On Jan. 28, 2015, Christopher Ryan Jenkins, 28, of Rockwood, Tenn., was sentenced to serve 240 months in prison, by the Honorable Pamela Reeves, U.S. District Judge, for conspiracy to manufacture 50 grams or more of methamphetamine (meth) and possession of precursors used to manufacture meth. Upon his release from prison, he will be supervised by the U.S. Probation Office for 10 years.
Jenkins was charged along with 17 others in a July 2014 indictment. He pleaded guilty to the offenses described above in September 2014. According to the plea agreement on file with U.S. District Court, between 2012 and 2014 Jenkins conspired with at least one other person to manufacture at least 50 grams of meth in various locations in east Tennessee. According to pharmacy records and by his own admission, he purchased, or had others purchase for him, pseudoephedrine that he used to manufacture meth.
“These cases demonstrate the tremendous impact that collaborative investigations among law enforcement agencies can help to combat methamphetamine production and distribution,” said U.S. Attorney Bill Killian. “The U.S. Attorney’s Office will continue to prosecute these types of cases to help rid communities of this harmful drug and the environmental impact caused by its production.”
Federal Bureau of Investigation (FBI) Special Agent in Charge Edward W. Reinhold said, “Manufacturing methamphetamine is a dangerous business and the community will not stand by while the drug trade goes on unchecked. The FBI commends the collaboration among the local law enforcement agencies, who devoted significant resources during this investigation.”
“We are gratified by the outcome in this joint investigation,” said Tennessee Bureau of Investigation (TBI) Director Mark Gwyn. “We will continue to work in partnership to identify and hold accountable those who cook meth. This is a tough fight, but we’re committed to the effort to eradicate this deadly drug.”
Sheriff Jack Stockton said, “The Roane County Sheriff’s Office hopes that this stiff sentence for a very young offender sends a message to all methamphetamine cooks that their lawlessness will not be tolerated and their crimes will be severely punished. I thank the United States Attorney’s Office for its continued partnership in addressing the methamphetamine problem in the East District of Tennessee.”
This case was investigated by the Roane County Sheriff’s Office, Harriman Police Department, Rockwood Police Department, Kingston Police Department, TBI and FBI. Assistant U.S. Attorney Brooklyn Sawyers represented the United States.
Johnny Michael Stallard Sentenced to 180 Months on A-Pvp ChargesRead the Press Release
GREENEVILLE, Tenn. – Johnny Michael Stallard, 39, of Kingsport, Tennessee, was sentenced on Jan. 22, 2015, by the Honorable R. Leon Jordan, U.S. District Court Judge, to a federal prison term of 180 months for his leadership role in an a-PVP (alpha-pyrrolidinopentiophenone) distribution conspiracy centered in and around the Sullivan County, Tennessee area. A-PVP is a synthetic drug which is commonly referred to on the street as “gravel.”
According to the plea agreement on file with the U.S. District Court, Stallard admitted, that before he got arrested, he was one of the biggest a-PVP dealers in the Kingsport, Tennessee area. On occasions, he obtained a-PVP by the kilogram from an out of state source of supply. He admitted to personally selling and/or having other family members such as Austin Michael Stallard, 19, and David Michael Stallard, 20, both of Kingsport, sell approximately 7,500 grams of a-PVP in the Eastern District of Tennessee and elsewhere. He also admitted that the two younger family members were basically serving as interns for the organization and were supposed to take over for him eventually. Even after he was arrested and in jail, Stallard assisted them and others in the continued sale of a-PVP during numerous recorded telephone conversations.
Stallard was indicted with a number of his family members. His son, Austin Michael Stallard was previously sentenced to 121 months for his role in trafficking a-PVP, hydromorphone and possessing a firearm in furtherance of drug trafficking. His cousin, Leslie Stallard, 37, and his aunt Peggy Stallard, 55, both of Kingsport, were previously sentenced to serve 60 and 72 months in prison respectively for their roles in the a-PVP distribution conspiracy. David Michael Stallard and another co-defendant were also convicted on a-PVP conspiracy charges and have upcoming sentencing dates.
Law enforcement agencies participating in the investigation which led to the indictment and subsequent convictions of Johnny Michael Stallard and co-defendants included the 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, Scott County, Virginia Sheriff’s Office, Drug Enforcement Administration, Bureau of Alcohol, Tobacco and Firearms, and the Department of Homeland Security Investigations. Assistant U.S. Attorney Wayne Taylor represented the United States.
Federal Jury Convicts Chattanooga Pain Clinics Owner of Drug Trafficking and Financial CrimesRead the Press Release
CHATTANOOGA, Tenn. - Following a 25-day trial in U.S. District Court that began on Nov. 3, 2014, a jury convicted Barbara Lang, a.k.a. “Aunt Bea,” 60, of Rossville, Ga., of conspiring to illegally distribute controlled substances (oxycodone and Xanax) at Superior One Pain Clinic and Primary Care Pain Clinic, two pain management clinics owned and operated by Lang.
The jury also convicted Lang of operating drug-involved businesses at five of the six locations used by the clinics. Lang was also convicted of illegally “structuring” cash deposits into Primary Care’s bank account at First Tennessee Bank in an effort to avoid triggering currency transaction reporting requirements. Altogether, she was convicted of two drug conspiracy charges; five maintaining a drug-involved business; and 14 structured transactions to avoid reporting requirements. She was acquitted of one count of maintaining a drug involved business, eight structuring counts, and one charge of harboring a fugitive, her daughter, Faith Blake, who was also charged in this case.
Sentencing for Lang is set for 9:00 a.m., Apr. 9, 2015, in U.S. District Court in Chattanooga. She faces a maximum sentence of 210 years in prison and forfeitures of up to $4 million. Approximately $1 million has already been seized in the case.
Lang was charged along with three others who have all previously pleaded guilty. Lang’s daughter, Faith Blake, pleaded guilty to conspiring to illegally distribute drugs through Superior One medical clinic, a business she operated with her mother. Blake also pleaded guilty to conspiring to illegally distribute drugs through Elite Care, another Chattanooga pain clinic that she operated. Additionally, she pleaded guilty to obstructing the Internal Revenue Service (IRS) and failure to appear for a federal court proceeding.
Dr. Jerome Sherard, Superior One’s medical director, pleaded guilty to conspiring to illegally distribute drugs at Superior One Medical Clinic and at the Sherard Clinic, his own practice. Charles Larmore, a nurse practitioner employed by the Lang at Superior One and Primary Care, pleaded guilty to conspiring to illegally distribute drugs at both those clinics.
Evidence presented at trial established that Lang and Blake operated Superior One as a “pill mill,” a location where individuals could easily obtain prescriptions for powerful pain killers such as oxycodone with little or no documented need. Armed guards patrolled the parking lots. Customers paid cash to obtain prescription drugs which were then abused and/or sold to others. Large doses of the drugs were routinely prescribed. Lang later opened Primary Care, and while she made some effort to present a more “legitimate” business, engaged in the several of the same illegal practices.
Records obtained from the State of Tennessee showed that Sherard and Larmore prescribed more narcotics than all but about 10 of the more than 20,000 prescribers in the state and routinely prescribed dangerous amounts and combinations of opioids and other narcotics. The jury heard evidence from clinic landlords, neighbors, customers, medical providers, wiretaps, and law enforcement officials that drug-seeking customers travelled hours to come to the clinics, engaged in drug activities around the clinics, and traded pills for cash. Customers would be given prescriptions even after they had failed drug tests, admitted abusing or selling drugs, or failed to document a medical need for the medication. During the seven months that it operated, Superior One generated over $2 million. During the 11 months that it operated, Primary Care generated approximately $2 million. The jury heard evidence that Lang “skimmed” approximately $175,000 from Primary Care that she did not report to the IRS. When agents searched her house they found a money-counting machine and $234,333 in cash in a safe.
Law enforcement agencies participating in the joint investigation which led to indictment and subsequent conviction of Lang, Blake, Sherard and Larmore included the Drug Enforcement Administration, Tennessee Bureau of Investigation, Hamilton County Sheriff’s Office, Chattanooga Police Department, Roane County Sheriff’s Department, and Rockwood Police Department. Assistant U.S. Attorneys Gregg L. Sullivan and Michael D. Porter represented the United States at trial. Assistant U.S. Attorney Tracy Stone prosecuted other individuals involved in the drug conspiracies.
Mountain City Resident Sentenced for Role in Methamphetamine Manufacturing ConspiracyRead the Press Release
GREENEVILLE, Tenn. – On Jan. 20, 2015, the last of 42 individuals charged in related methamphetamine manufacturing cases was sentenced by the Honorable J. Ronnie Greer, U.S. District Judge. Tony Jerome Snyder, 37, of Mountain City, Tenn., was sentenced to serve 135 months in federal prison for conspiring to manufacture more than 50 grams of methamphetamine. Upon his release from prison, he will be supervised for five years by U.S. Probation. There is no parole in the federal system.
Snyder and 19 others were indicted in May 2013 for conspiring to manufacture methamphetamine and possessing equipment, chemicals, materials, and products to be used in the manufacture of methamphetamine. Twenty-two others were also indicted in related methamphetamine manufacturing cases arising from the same investigation. All have now been sentenced.
The charges stemmed from a lengthy investigation spanning from 2006 to 2013 wherein these individuals conspired to obtain pseudoephedrine and other products needed to manufacture methamphetamine from various sources in the Eastern District of Tennessee, Western District of North Carolina, and Western District of Virginia. The pseudoephedrine and other products were then used to manufacture methamphetamine utilizing the “shake and bake” method. The methamphetamine was used and distributed throughout the Eastern District of Tennessee.
U.S. Attorney Bill Killian praised the efforts of law enforcement involved in these cases stating, “These cases demonstrate the tremendous impact that collaborative investigations among law enforcement agencies can help to combat methamphetamine production and distribution. Our office has worked hard to help reduce the number of methamphetamine labs in east Tennessee and will continue to aggressively prosecute these cases.”
This investigation was a result of the collaborative efforts of the Johnson County Sheriff’s Office, First Judicial District Drug Task Force, Tennessee Methamphetamine Task Force, Watauga County (North Carolina) Sheriff’s Office, and Drug Enforcement Administration. Assistant U.S. Attorneys Suzanne Kerney-Quillen and Caryn Hebets represent the United States.
William I. Jackson Sentenced for Drug and Guns OffensesRead the Press Release
GREENEVILLE, Tenn. – On Jan. 15, 2015, William Isaac Jackson, 26, of Elizabethton, Tenn., was by the Honorable Leon Jordan, U.S. District Judge, to serve 150 months in prison for conspiracy to possess a quantity of crack cocaine and possession of firearms in furtherance of drug trafficking. Upon his release from prison Jackson will supervised by the U.S. Probation Office for four years. There is no parole in the federal system.
Jackson’s wife, Latari Jackson, also pleaded guilty to conspiracy to distribute crack cocaine. She will be sentenced at a later date.
Law enforcement agencies participating in the joint investigation included the Elizabethton Police Department, Drug Enforcement Agency Task Force, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney J. Gregory Bowman represented the United States.
Knoxville Hotel Owner Sentenced to Serve 42 Months in Prison for Bank FraudRead the Press Release
GREENEVILLE, Tenn. - Jayesh Dahyabhai Patel, 49, of Knoxville, Tenn., was sentenced on Jan. 15, 2015, by the Honorable Leon Jordan, U.S. District Court Judge, to serve 42 months in federal prison. Patel was also ordered to pay restitution of $2,806,438.20 to First Community Bank and serve five years of supervised release upon his release from prison.
Patel was indicted in May 2014 and pleaded guilty in July 2014 to bank fraud. He admitted engaging in a scheme from approximately January 2009 to August 2011 to defraud First Community Bank of East Tennessee, Kingsport, Tenn., in connection with an application for a loan to his business, QIS Knoxville, LLC, by providing false tax returns to induce First Community Bank to issue the loan for the purchase and renovation of a Knoxville hotel. Patel further schemed to defraud First Community Bank by providing false invoices to induce the bank to disburse loan funds and by providing additional false tax returns in order to increase the amount of the loan and to obtain a six-month interest only payment period. Finally, he fraudulently induced First Community Bank to make a second loan to finance the sale of a motel by Patel to a relative by providing false information as to the down payment on the purchase. As a result of the fraud, First Community Bank suffered losses of $2,806,438.20.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Neil Smith represented the United States.
Austin Michael Stallard Sentenced to 121 Months on Drug and Firearm ChargesRead the Press Release
GREENEVILLE, Tenn. – On Jan. 13, 2015, Austin Michael Stallard, 19, of Kingsport, Tenn., was sentenced by the Honorable R. Leon Jordan, U.S. District Court Judge, to serve 121 months in federal prison for his role in an a-PVP (alpha-pyrrolidinopentiophenone) distribution conspiracy centered in and around the Sullivan County, Tenn., area and for possessing hydromorphone and a firearm in furtherance of his drug trafficking. A-PVP is a synthetic drug which is commonly referred to on the street as “gravel.”
According to Stallard’s plea agreement on file with U.S. District Court, in April 2013 he was pulled over for a traffic stop in Kingsport, Tenn. As the officer approached the vehicle, Stallard initially refused to raise his right hand. He later told the arresting officer that he had been manipulating a pistol magazine at the time. A search of the vehicle revealed: a .40 caliber Glock pistol under the driver’s seat; three additional fully loaded .40 caliber Glock pistol magazines in the glove compartment; a total of 58, .45 caliber bullets; a shoulder holster; a gun case; and two boxes of .40 caliber ammunition containing another 19 rounds. Upon being transported and booked into the Kingsport Police Department jail, officers located 60 hydromorphone pills in a black 35mm type container hidden underneath Stallard’s clothing near his buttocks.
In July 2013, Stallard led police officers on a lengthy, high speed car chase through the Eastern District of Tennessee and parts of the Western District of Virginia. During the chase, Stallard struck a concrete retaining wall and at another point, struck a parked car. His vehicle reached at least 85 mph and he tossed various baggies from the window of the vehicle as he led officers on the pursuit. The chase ended when his right front tire exploded, although he continued for a period of time on the wheel’s rim. Stallard told law enforcement officers that he had been trying to get them to chase him all day. A search of the interior of his vehicle revealed a number of different kinds of drugs, including oxycodone, hydromorphone and a-PVP. A stun gun was also located inside the vehicle.
Stallard stipulated in his plea agreement that he conspired to distribute a conservative estimate of 1,200 grams of a-PVP in the Eastern District of Tennessee and elsewhere. He was involved in dealing a-PVP and was indicted with a number of his family members. Stallard’s cousin and father both have been convicted on a-PVP conspiracy charges and are awaiting sentencing. Other family members, Peggy Stallard, 55, and Leslie Stallard, 37, both of Kingsport, Tenn., were previously sentenced to terms of 60 and 72 months in prison respectively.
U.S. Attorney William C. Killian stated, “Gravel” is a very dangerous and harmful substance. We are pleased with these significant sentences and believe that they reflect the seriousness of the crimes committed.”
Law enforcement agencies participating in the investigation which led to the indictment and subsequent conviction and sentencing of Stallard and his co-defendants include the Drug Enforcement Administration, Bureau of Alcohol, Tobacco and Firearms, Department of 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 Police Department. Assistant U.S. Attorney Wayne Taylor represented the United States.
225th Birthday Celebration United States Attorney’s Office of TennesseeRead the Press Release
KNOXVILLE, Tenn. – On Jan. 15, 2015, the U.S. Attorney’s Office for the Eastern District of Tennessee celebrated the 225th Birthday of the U.S. Attorney’s Office for Tennessee, by holding a reception in the Knoxville headquarters office. Early history of the office dates back to 1790. Tennessee remained a unified district until 1805 when the state was divided into three districts, the Eastern, Middle and Western Districts.
The Judiciary Act of 1789, created the position of the U.S. Attorney. This Act, created by Congress, directed the President of the United States to appoint “a meet person learned in the law to act as an attorney for the United States” in each federal district. The U.S. Attorney was “to prosecute in (each) district all delinquents for crimes and offenses cognizable under the authority of the United States, and all civil actions in which the United States shall be concerned.”
Within a few days of passage of the Judiciary Act, President George Washington appointed thirteen distinguished individuals to fill the offices of U.S. Attorneys in the newly created federal judicial districts. Among those first appointed were John Marshall, U.S. Attorney for Virginia, later the Chief Justice of the U.S. Supreme Court and Christopher Gore of Massachusetts, later governor of that state. Those selected for the Office of U.S. Attorney represented the best from their states.
Many other familiar names have served as U.S. Attorney including two Presidents of the United States. Andrew Jackson was the first U.S. Attorney for the District of Tennessee and Franklin Pierce served the District of New Hampshire.
Presidents from George Washington to Barack Obama have appointed individuals to serve as U.S. Attorney who are committed to honor, courage, and justice. Holding the position reflects the honor of which George Washington spoke two hundred years ago when he wrote to Richard Harrison about accepting the appointment as U.S. Attorney for the District of New York, “The high importance of the judicial system in our national government makes it an indispensable duty to select such characters to fill the several offices in it as would discharge their respective duties in honor to themselves and advantage to their country.”
Currently, there are 94 federal districts with 93 U.S. Attorneys serving in those districts. Caseloads involve issues ranging from the brutal to the compassionate. The U.S. Attorney is the one responsible for translating the concept of justice into the everyday lives of its citizens.
The U.S. Attorney’s Office for the Eastern District of Tennessee is the largest in the state, encompassing 41 of the 95 counties, spanning 420 miles, and serving over 2.6 million people.
Despite the importance of the U.S. Attorney’s offices people may still find themselves asking the question, “What does a U.S. Attorney do?”
The mission of the U.S. Attorney's Office for the Eastern District of Tennessee is to enforce the law and defend the interests of the United States according to the law; to ensure public safety against threats foreign and domestic; to provide federal leadership in preventing and controlling crime; to ensure the fair and impartial administration of justice for the people of East Tennessee; and, to serve as effective financial stewards for the American people, by defending the financial interests of, and collecting debts owed to the United States.
Our office prosecutes those individuals and organizations that violate federal criminal statutes. This includes offenses such as domestic and foreign terrorism; child pornography and exploitation; civil rights violations; bank robbery and other violent crimes; firearms offenses; drug trafficking; health care fraud; immigration violations; public corruption; tax evasion; mail, bank and wire fraud; environmental offenses; and identity theft.
We also represent the United States in civil litigation, affirmative and defensive. As such, we sue individuals or entities who have violated federal civil laws. We also defend the interests of the United States when it, or one of its departments, agencies, or employees is sued, and we defend federal programs and agency actions.
Additionally, we collect monies owed to the United States from forfeiture, restitution, and fines imposed as a part of the judgment in federal cases. We also pursue collection of civil debts owed to the United States, including student, small business, housing, and farm loans. Finally, we represent the interests of federal agencies in bankruptcy court.
In carrying out our mission, the U.S. Attorney’s Office works with a multitude of federal, state, and local agencies, including the Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, Federal Bureau of Investigation, Department of Homeland Security, Bureau of Immigration and Customs Enforcement, Department of Energy, Internal Revenue Service, U.S. Forest Service, U.S. Park Service, U.S. Marshal’s Service, U.S. Postal Inspection Service, U.S. Secret Service, Tennessee Bureau of Investigation, Tennessee Highway Patrol, Tennessee Methamphetamine Task Force, 15 Tennessee District Attorneys Generals, 11 Tennessee Judicial District Drug Task Forces, 41 County Sheriff’s offices, and 117 Chiefs of Police and their departments.
Current U.S. Attorney William C. “Bill” Killian added, “Throughout history, this office has exhibited Justice through their work, dedication, and accomplishments. Long after I leave this position, this office will continue to exhibit the pride that comes from representing the United States of America. As an attorney, you will have no greater client. Justice is not a nebulous concept. It is applied to the matters and cases every hour of every day by the Assistant U.S. Attorneys and the staff. As so aptly put by Mr. Justice Sutherland in the case of Berger v. United States (1935), ‘The U.S. Attorney is the representative not of an ordinary party to a controversy but of a sovereignty whose obligation to govern impartially is as compelling as its obligation to govern at all; and whose interest therefore in a criminal prosecution is not that it shall win a case but that justice shall be done. As such, he is in a peculiar and very definite sense the servant of the law, the twofold aim of which is that guilt shall not escape nor innocence suffer. She may prosecute with earnestness and vigor – indeed she should do so. But while he may strike hard blows, he is not at liberty to strike foul ones. It is as much her duty to refrain from improper methods calculated to produce a wrongful conviction as it is to use every legitimate means to bring about a just one.’"
Brian Murphy Sentenced to 45 Months in Prison for Conspiracy to Commit Mail and Wire Fraud Through Benchmark Capital Ponzi SchemeRead the Press Release
KNOXVILLE, Tenn. - Brian Murphy, 43, of Knoxville, Tenn., was sentenced on January 8, 2015, to serve 45 months in prison by the Honorable Thomas A. Varlan, Chief U.S. District Judge. Murphy was also ordered to pay $18 million in restitution to the victims in the case.
Murphy pleaded guilty in August 2014, to a federal indictment charging him with conspiracy to commit mail and wire fraud. The indictment arose out of Murphy’s participation with Joyce Allen and the late Charles Candler in the operation of a business known as Benchmark Capital, which was discovered to be a Ponzi scheme that financially ruined many of its hundreds of victims. Candler, Allen, Murphy and others vouched for the soundness of investment annuities they sold when in fact they were worthless.
The indictment and subsequent conviction of Murphy was the result of a three-year investigation conducted by the Internal Revenue Service, U.S. Postal Inspection Service, and Federal Bureau of Investigation. Assistant U.S. Attorneys Frank Dale and Jennifer Kolman represented the United States.
Kevin Scott Thibault Sentenced for Forgery of Signature of A U.S. District Court Judge and Mail FraudRead the Press Release
KNOXVILLE, Tenn. – On Dec. 18, 2014, Kevin Scott Thibault, 49, of Maryville, Tenn., was sentenced by the Honorable Pamela L. Reeves, U.S. District Judge, to serve 60 months in prison for forgery of the signatures of a district court judge and an officer of the U.S. District Court. Additionally, Judge Reeves ordered Thibault to serve 72 months in prison for mail fraud. These sentences will run concurrently.
Thibault pleaded guilty in August 2014 to a two-count indictment charging him with the forgery counts and a one-count information charging him with mail fraud. Thibault was also ordered to pay restitution in the amount of $380,340.12. Upon his release from prison, he will be supervised by the U.S. Probation Office for three years.
Thibault admitted to falsely representing himself as an attorney and agreeing to assist two individuals with the adoption of foster children in their custody. In May 2012, Thibault presented the individuals with fake adoption papers that he claimed had been filed in U.S. District Court, signed by U.S. District Judge Thomas A. Varlan, and certified by U.S. District Court Officer Kathy Keeton. An investigation revealed that neither Judge Varlan nor Keeton signed the documents and the signatures were forged.
In October 2012, Thibault demanded that the individuals sign a power of attorney permitting him to represent their interest in the alleged adoption proceedings. However, the power of attorney actually allowed him to conduct certain financial transactions on their behalf. According to the plea agreement, through the course of this scheme, Thibault obtained at least $400,000 from the victims to further his scheme to defraud and obtain money.
This investigation was handled by the Blount County Sheriff’s Office and Federal Bureau of Investigation. Assistant U.S. Attorney Brooklyn Sawyers represented the United States.
Former Wackenhut Security Officer Indicted for Theft of Public FundsRead the Press Release
KNOXVILLE, Tenn. - A federal grand jury in Knoxville returned a three-count indictment on Dec. 16, 2014, against Sarah Parker, 52, of Dandridge, Tenn., for theft of U.S. Government property and money laundering. Parker appeared in court on Dec. 18, 2014, before U.S. Magistrate Judge C. Clifford Shirley, Jr. and pleaded not guilty to the charges in the indictment. She was released pending trial, which has been set for Feb. 17, 2015, in United States District Court, Knoxville.
The indictment alleges that Parker, who was employed as a Security Protective Officer with Wackenhut Services Inc. at the ETTP facility in Oak Ridge, Tenn., converted $214,022.59 to personal use, in the form of checks that came into her possession as a result of her employment. The indictment further alleges that Parker illegally engaged in financial transactions with those funds, including the purchase of a vehicle for $39,608.97 and payment of $74,327.12 to Bank of America.
If convicted, Parker faces a term of 10 years in prison for each count. The indictment also states that Parker, upon conviction, may be required to forfeit any property that is traceable to the alleged offenses.
This indictment is the result of an investigation by the U.S. Department of Energy, Office of the Inspector General and the Federal Bureau of Investigation. Assistant U.S. Attorney Frank M. Dale, Jr. will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
Chattanooga Man Sentenced to 200 Months for Possession of A Firearm by A FelonRead the Press Release
CHATTANOOGA, Tenn.-- Terrell Buford, 27, of Chattanooga, Tenn., was sentenced to serve 200 months in prison by the Honorable Harry S. Mattice, Jr., U.S. District Judge. Upon his release from prison Buford will be subject to supervised release by the U.S. Probation Office for three years. There is no parole in the federal system.
In March 2014, law enforcement found Buford in possession of a firearm while executing a narcotics search warrant at his place of business. In May 2014, he pleaded guilty to being a felon in possession of a firearm. Buford’s prior felony charges included multiple counts of aggravated robbery and aggravated burglary, as well as aggravated assault and possession of cocaine for resale.
Law enforcement agencies participating in the investigation included the Rhea County Sheriff’s Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. Special Assistant U.S. Attorney Meredith J. Edwards 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.
Eleven Indicted in Heroin and Cocaine Distribution RingRead the Press Release
KNOXVILLE, Tenn. – On Dec. 16, 2014, a federal grand jury returned a one-count indictment against 11 individuals for conspiracy to distribute one kilogram or more of a mixture and substance containing a detectable amount of heroin and five kilograms or more of a mixture and substance containing a detectable amount of cocaine. Those indicted include:
Jerome Boone, 58, of Long Island, N.Y.; David Mayes, 57, of Blount County, Tenn.; Robert Cannon, 53, of Blount County, Tenn.; Jenni Fair, 40, of Blount County, Tenn.; Oliver Hicks, 46, of Blount County, Tenn.; Ladonald Hodge, 52, of Blount County, Tenn.; Joshua Kruse, 35, of Blount County, Tenn.; Joshua Millward, 41, of Blount County, Tenn.; Loretta Templeton, 49, of Blount County, Tenn.; William Templeton, 52, of Blount Count, Tenn.; and Gordon Yearwood, 56, of Brooklyn, N.Y.
All have been arrested and appeared in U.S. District Court. All except Gordon Yearwood have been held without bond pending trial set for Feb. 10, 2015, before the Honorable Thomas A. Varlan, U.S. District Judge.
If convicted, each faces a prison term of at least 10 years and up to life, a term of supervised release of at least 5 years and up to life, a fine of up to $10,000,000, any applicable forfeiture, and a $100 special assessment.
The indictment and supporting documentation are on file with the U.S. District Court in Knoxville, alleges that the conspiracy occurred between January and December 2014.
These arrest and charges are the result of an investigation by the Fifth Judicial Drug Task Force, which consists of officers and investigators from the Blount County Sheriff’s Office, Maryville Police Department and Alcoa Police Department, and the Drug Enforcement Administration. Assistant U.S. Attorney Cynthia Davidson will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
Two Vonore Residents Plead Guilty to Mail Theft in Tellico VillageRead the Press Release
KNOXVILLE, Tenn. –On Dec. 2, 2014, Sarah Jane Duncan, 38, of Vonore, Tenn., pleaded guilty in U.S. District Court to theft of mail and possessing the identification of another without lawful authority. Amber Dawn Thomas, 33, also of Vonore, Tenn., pleaded guilty to these same charges on Dec. 5, 2014. Both were indicted by a federal grand jury in March 2014.
Sentencing for both Duncan and Thomas has been set for April 1, 2015, in U.S. District Court, Knoxville. Each faces a sentence of up to six months in prison and a fine of up to $250,000.
Facts included in the plea agreement on file with the U.S. District Court show that in December 2013 a resident called the Loudon County Sheriff’s Office to report finding a grocery bag containing mail of multiple residents of Tellico Village. That same day, the sheriff’s department received a report of a small car stopping at all the residence mailboxes in the Tanasi Lagoon area of Tellico Village. Officers spotted the vehicle later that day and observed the driver removing something from a mailbox. Officers stopped the vehicle and identified the driver as Thomas and the passenger as Duncan. A search warrant was obtained, which resulted in the officers finding and recovering stolen mail from inside the vehicle. Both Thomas and Duncan admitted to stealing mail. Additionally, they admitted to placing some of the mail in a grocery bag and throwing it out in Tellico Village as well as dumping other mail at a convenience store. Cash was found in a medical boot worn by Thomas, which she admitted was obtained from the stolen mail. Additionally, checks were found in Thomas’s purse as well as recovered from the police cruiser used to transport Duncan and her to jail.
This case was investigated by the Loudon County Sheriff’s Department and U.S. Postal Inspection Service. Assistant U.S. Attorney Jennifer Kolman represents the United States.