Eastern District of Tennessee
Press releases recorded for this federal judicial district.
Marion County Sheriff’s Department to Receive over $750,000 Forfeited in East Tennessee Drug Trafficking CaseRead the Press Release
Cash and vehicles forfeited totaled $961,413.93
CHATTANOOGA, Tenn. –The Marion County Sheriff’s Department will receive a check in the amount of $751,515.71, which represents the majority of funds forfeited in a marijuana trafficking case prosecuted in U.S. District Court in Chattanooga.Jackie Morrison, 66, Ollie Frizzell, 53, Sammy Nance, 51, all of Whitwell, Tenn., along with Julio Barbosa, Sr., 60, of Laredo, Texas, were charged and convicted of offenses related to the scheme, which operated from 2004 to 2011. The operation was responsible for transporting over 1000 pounds of marijuana from Texas to East Tennessee, where it was distributed.
Morrison was arrested as he was returning from Laredo, Texas to Jasper, Tenn., in November 2011 with 66 pounds of marijuana in his pickup truck. Searches of the truck and residences for Morrison and his coconspirators resulted in the seizure of approximately 86 pounds of marijuana, guns, explosives, drug ledgers, cash, vehicles, and bank accounts.
After a jury trial, Morrison was found guilty of a conspiracy to distribute 100 kilograms or more of marijuana, possession of marijuana with the intent to distribute, and 28 counts of structuring money to evade currency reporting requirements. He was sentenced to serve 72 months in prison, followed by four years of supervised release. The jury also found that $779,033.23, was forfeitable as money involved in the structuring offenses, and $820.00 and a 2003 Ford F-250 pickup truck were forfeitable as property involved in drug trafficking offenses.
Nance pleaded guilty to three counts of distribution of marijuana. He was sentenced to serve 24 months in prison, followed by four years of supervised release. Nance was acquitted by the jury of the conspiracy to distribute 100 kilograms or more of marijuana. However, the jury forfeited an ATV used by Nance to distribute the marijuana for which he pleaded guilty.
Frizzell pleaded guilty to conspiracy to distribute 100 kilograms or more of marijuana. She was sentenced to serve 30 months in prison, followed by four years of supervised release. She also forfeited a 2005 Toyota Tacoma and $159,700.70.
Barbosa pleaded guilty to conspiracy to distribute 100 kilograms or more of marijuana and money laundering. He was sentenced to serve 48 months in prison, followed by eight years of supervised release.
Of the total $961,413.93 ordered by the court to be forfeited, $939,553.93 was cash and $21,860.00, was the value of vehicles and an ATV.
U.S. Attorney William C. Killian said, “To ensure that crime doesn’t pay, federal law allows the forfeiture of property used to facilitate crimes and assets obtained through their illegal activity. The U.S. Attorney’s Office for the Eastern District of Tennessee works with our federal and local law enforcement agency partners to identify, seize, and forfeit property in an effective and powerful strategy in the fight against crime as part of the Department of Justice’s asset forfeiture program.”
Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Glenn “Andy” Anderson stated, “In keeping with ATF Chattanooga’s Frontline strategy to address and reduce violent crime and protect the public, our partnership with the Marion County Sheriff’s Office has once again proven to be invaluable in concentrating on criminal groups. This investigation has had many phases and still continues. At this juncture, it is with great pleasure to share these proceeds of ill-gotten gains with Sheriff Burnett and his office.”
Marion County Sheriff Ronnie “Bo” Burnett stated, “The Marion County Sheriff’s Office committed personnel to work with ATF Chattanooga seven years ago. During that time the working relationship with the ATF and the U.S. Attorney’s Office has been invaluable. The streets and neighborhoods of Marion County are much safer today because of this strong partnership. This case is one of many successful cases that has been prosecuted as a result of this partnership. The Sheriff’s Office is grateful that this partnership has paid off not only to get criminals off of the streets but to also ensure that the Sheriff’s Office has the needed funding to hire more personnel, conduct training, and obtain updated investigative equipment.”
In addition to the Marion County Sheriff’s Department, the ATF had a significant role in the investigation which led to the subsequent conviction and sentencing of these individuals. Assistant U.S. Attorneys Jay Woods and Gregg Sullivan represented the United States. Assistant U.S. Attorney Anne-Marie Svolto assisted with the forfeiture.
The Department of Justice Asset Forfeiture Program is a nationwide law enforcement initiative that removes the tools of crime from criminal organizations, deprives wrongdoers of the proceeds of their crimes, recovers property that may be used to compensate victims, and deters crime. The most important objective of the program is strengthening law enforcement efforts to combat crime. Equitable sharing further enhances this law enforcement objective by fostering cooperation among federal, state, and local law enforcement agencies. Any state or local law enforcement agency that directly participates in an investigation or prosecution that results in a federal forfeiture may request an equitable share of the net proceeds of the forfeiture.
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Dandridge Moonshiner James Carrol Hickman ConvictedRead the Press Release
GREENEVILLE, Tenn. – James Carrol Hickman, 41, of Dandridge, Tenn., was convicted of aiding and abetting in the illegal production of distilled spirits by a person who was not an authorized distiller (illegal production of “moonshine”). Hickman was convicted on Dec. 5, 2014, following a two-day jury trial, and is scheduled for sentencing on Mar. 17, 2015. He faces a possible sentence of up to five years in federal prison and up to $10,000 in fines.
Evidence presented at trial showed Hickman worked for co-defendant Jack Mayfield, Jr., at a large-scale illegal moonshine production operation in the Carson Springs area of Cocke County, Tenn. Hickman’s role at the operation included transporting supplies and distributing moonshine. According to the testimony of a TBI agent, Hickman also admitted that he “cooked” moonshine. Testimony from an additional witness also demonstrated that Hickman was involved in the production of moonshine. The evidence further showed that the operation consisted of 18 stills, each with a capacity of 400 gallons.
Two others have already been convicted in this case and are awaiting sentencing. Michael Steve Reece was convicted on Nov. 7, 2013, and is scheduled for sentencing on Mar. 10, 2015. Jack Mayfield, Jr., was convicted on Oct. 9, 2014, and is scheduled for sentencing on Feb. 12, 2015.
This investigation was a joint effort 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 represent the United States.
Esteban Delgado Camacho Sentenced to 120 Months in Prison for Cocaine Conspiracy and Firearm ChargesRead the Press Release
GREENEVILLE, Tenn. – On Nov. 24, 2014, Esteban Delgado Camacho, 48, of Weaverville, N.C., was sentenced by the Honorable R. Leon Jordan, U.S. District Court Judge, to serve 120 months in prison for his role as a source of supply in a cocaine conspiracy centered in and around the Johnson City, Tenn., area and for possessing firearms in furtherance of his cocaine trafficking.
According to the plea agreement on file with the U.S. District Court, Camacho admitted that he conspired to distribute between 3.5 to 5 kilograms of cocaine in the Eastern District of Tennessee and elsewhere. He also admitted that he supplied co-defendant Victor Verdin with cocaine. In February 2014, law enforcement officers arrested Camacho and Verdin as they were conducting a drug deal involving a quarter kilogram of cocaine at a residence maintained by Verdin in Johnson City. Verdin, 49, of Johnson City, Tenn., previously pleaded guilty in this case and is currently scheduled to be sentenced on Feb. 10, 2015.
A subsequent search warrant at Camacho’s residence in North Carolina resulted in the seizure of approximately a quarter kilogram of cocaine, approximately an ounce of crack cocaine, multiple firearms, digital scales and over $41,000 in U.S. currency.
Law enforcement agencies participating in the investigation which led to the indictment and subsequent conviction of Camacho included the Drug Enforcement Administration (in Tennessee and North Carolina), Tennessee Bureau of Investigation, Johnson City Police Department, First District Drug Task Force, Department of Homeland Security Investigations, Bureau of Alcohol, Tobacco and Firearms and Washington County Sheriff’s Office. Assistant U.S. Attorney Wayne Taylor represented the United States.
U.S. Attorney William C. Killian stated, “Defendants, such as this one, should receive the strongest sentences in the federal court for their armed illegal drug activity.”
Sherri Michelle Rhodes Sentenced to 34 Months in Prison for Wire Fraud and Aggravated Identity TheftRead the Press Release
KNOXVILLE, Tenn. -- Sherri Michelle Rhodes, 42, of Knoxville, Tenn., was sentenced to serve 34 months in prison by the Honorable Leon Jordan, Senior U.S. District Judge. Rhodes pleaded guilty in November 2013 to a federal indictment charging her with wire fraud and aggravated identity theft.
Upon her release from prison, Rhodes will be supervised by the U.S. Probation Office for a period of three years. She was also ordered to pay restitution in the amount of $522.63.
Rhodes negotiated counterfeit checks at retailers in the Knoxville area. The counterfeit checks contained bank account information gleaned from mail that she had stolen. The counterfeit checks were negotiated with false identification cards bearing the same name as the account holder on the checks and a picture of Rhodes. When negotiating the counterfeit checks at a local merchant, the bank account information was processed electronically by Telecheck Services, Inc., in Houston, Texas.
The indictment and subsequent conviction of Rhodes was the result of an investigation conducted by the U.S. Secret Service. Assistant U.S. Attorney Matthew T. Morris represented the United States.
Former Newport Police Detective Captain to Serve Prison Sentence for Distributing Controlled SubstancesRead the Press Release
Criminal activity occurred while on duty
GREENEVILLE, Tenn. – On Nov. 24, 2014, James Finley Holt, 59, of Cosby, Tenn., was sentenced to serve 90 months in prison by the Honorable J. Ronnie Greer, U.S. District Judge. Holt pleaded guilty to an information charging him with distribution of controlled substances and possession of a firearm in furtherance of drug trafficking.
The conviction of Holt was the result of an undercover investigation, spanning several months, conducted by the Tennessee Bureau of Investigation (TBI) and the Fourth Judicial District Attorney’s office. An undercover investigation by the TBI from April 2014 through July 2014 revealed that Holt bought stolen property and sold it from convenience stores he owned with his wife in Newport Tenn. He also distributed hydrocodone and swapped the drug for stolen property. Many of the transactions occurred while Holt was on duty as a detective captain with the Newport Police Department. In July 2014 Holt was arrested and search warrants were executed by TBI and other agencies, both at his residence and the Newport Police Department. Evidence seized included pill bottles, pills, a short barrel shotgun and other items outlined in the factual basis for the plea agreement on file with the U.S. District Court.
Agencies assisting TBI included the Fourth Judicial District Attorney’s office, Tennessee Highway Patrol and Federal Bureau of Investigation. Assistant U.S. Attorney Donald Wayne Taylor represented the United States.
U.S. Attorney William C. Killian said, “Holt illegally used his badge and the trust placed in him for personal gain. While the quantity of drugs he distributed was small by federal prosecution standards, his conviction was important because he victimized the community he swore to protect. Furthermore, he betrayed the brave men and women of law enforcement who risk their lives to protect and serve. The U.S. Attorney’s Office will continue to make it a priority to support law enforcement in the effort to protect the integrity and honor of the profession from those who abuse the privilege of wearing a badge.”
Tennessee Bureau of Investigation Director Mark Gwyn stated, “This case was a blemish on the law enforcement community and those who do their best to uphold the law and maintain transparency. As a result of this investigation, it is my hope that we can all move forward and work harder to maintain public trust.”
Two Plead Guilty in Federal Extortion Case Involving Former East Tennessee Law Enforcement OfficersRead the Press Release
KNOXVILLE, Tenn. - On Nov. 21, 2014, Robert E. Cummings, 61, of Knox County, Tenn., and Benito D. Lopez, 62, of Knox County pleaded guilty to attempting to commit extortion under color of official right. Sentencing for Cummings was set for 1:00 p.m., on Mar. 23, 2015. Sentencing for Lopez was set for 9:00 a.m., on Mar. 30, 2015. Each faces a maximum of 20 years in prison, a $250,000 fine, and three years of supervision by the U.S. Probation office upon release from prison.
Under “color of official right,” a public official obtains a payment to which he or she is not entitled, believing that the money is being given to him or her in return for taking, withholding, or influencing official action. Cummings was a former University of Tennessee Police Officer. Lopez was a former TVA Police Officer.
Both Cummings and Lopez were indicted earlier this month by a federal grand jury, along with three other former or current law enforcement officers: Jimmy W. Douglas, 43, of Knox County, a former Deputy Sheriff for Knox County Sheriff’s Office; Samuel T. Hardy, Jr., 42, of Knox County, a former Deputy Sheriff for Knox County Sheriff’s Office; and David L. Joyner, 44, of Sevier County, a detective with the Pigeon Forge Police Department. Another former officer involved in the scheme previously pleaded guilty in U.S. District Court to an information charging him with violations of the Hobbs Act. Douglas, Hardy and Joyner have all entered not guilty pleas and are awaiting trial in U.S. District Court.
The indictment and subsequent guilty pleas by the these individuals are the result of an investigation by the Federal Bureau of Investigation, Tennessee Valley Authority - Office of Inspector General, and Tennessee Bureau of Investigation. Assistant U.S. Attorney Jeffrey Theodore represents the United States.
Eastern District of Tennessee U.S. Attorney’s Office Collects $6,284,548.95 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2014Read the Press Release
KNOXVILLE, Tenn. - U.S. Attorney William C. Killian announced today that the Eastern District of Tennessee collected $6,284,548.95 in criminal and civil actions in Fiscal Year 2014. Of this amount, $4,538,338.33 was collected in criminal actions and $1,746,210.62 was collected in civil actions.
Additionally, the Eastern District of Tennessee worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $8,984,509.29 in cases pursued jointly with these offices. Of this amount, $400.00 was collected in criminal actions and $8,984,109.29 was collected in civil actions.
Attorney General Eric Holder announced on Wednesday, Nov. 19, 2014, that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
“We are proud of the amounts collected in the Eastern District of Tennessee. These collections represent either assets acquired by criminal activity or fines and penalties assessed by the court as a result of illegal activity. Our staff works hard to collect these monies which help lower the burden on the taxpayers,” said U.S. Attorney Bill Killian.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in the Eastern District of Tennessee, working with partner agencies and divisions, collected $6,423,352 in asset forfeiture actions in FY 2014. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Elizabeth Ann Carrier Sentenced to Eight Months in Prison for Making False Reports of Tainted Consumer ProductsRead the Press Release
Johnson City Resident Falsely Reported Family Member Poisoned Juice Drinks
GREENEVILLE, Tenn. – On Nov. 17, 2014, Elizabeth Ann Carrier, 52, of Johnson City, Tenn., was sentenced to serve eight months in prison by the Honorable J. Ronnie Greer, U.S. District Judge. Upon her release from prison, Carrier will be supervised for three years by the U.S. Probation Office. She was also ordered to complete 150 hours of community service, and pay a $100 special assessment to the United States.
Carrier pleaded guilty in July 2014 to a federal indictment charging her with falsely communicating reports of consumer product tampering. According to public records, Carrier placed telephone calls to the Pepsico Products consumer hotline in June 2013 claiming that an individual related to her by marriage had inserted rat poison in bottled juice drinks manufactured and distributed by Tropicana and Quaker Foods.
U.S. Attorney William C. Killian noted that Carrier was prosecuted under a statute which Congress enacted after the tainted Tylenol poisoning deaths which occurred in Chicago during 1982. "Understandably, Congress became concerned about the intentional tainting of consumer products and false reports of consumer product tampering. Such actions significantly disrupt interstate commerce, threaten public health, undermine public confidence in the safety of our food and drug supplies, and waste private and public resources investigating false reports. Individuals who knowingly make false reports of consumer product tampering should be aware that they are subject to federal prosecution," said Killian.
The indictment and subsequent conviction of Carrier was the result of an investigation conducted by agents with the U.S. Food and Drug Administration, Office of Criminal Investigations, assisted by the Sullivan and Carter County Sheriff's offices and Tennessee State Board of Probation and Parole. Assistant U.S. Attorney Helen Smith represented the United States.
Bristol Man Sentenced for Bath Salts ConspiracyRead the Press Release
GREENEVILLE, Tenn. – On Nov. 18, 2014, Harry Joseph Cannon, 50, of Bristol, Tenn., was sentenced by the Honorable R. Leon Jordan, U.S. District Court Judge, to serve 48 months in federal prison. Cannon was previously convicted of conspiracy to distribute, and possess with the intent to distribute, assorted Schedule I controlled substances, and assorted Schedule I controlled substance analogues, commonly known as “bath salts” or “spice”.
From March 2011 to October 2013, Cannon conspired with various other persons to distribute, and possess with the intent to distribute “bath salts” and “spice”. Cannon sold these substances from his store, 420 Emporium, in Bristol, Tenn. During the investigation, law enforcement conducted a series of undercover drug purchases from Cannon and 420 Emporium. Those purchases led to federal search warrants being executed on two separate occasions, on Mar. 21, 2012, and on Oct. 17, 2012. In both instances, agents recovered extensive amounts of Schedule I controlled substances and Schedule I controlled substance analogues. Most of these drugs were already prepackaged for resale. Numerous firearms were also recovered.
This long term investigation was the product of a partnership between the Bristol, Tennessee Police Department, Second Judicial District Drug Task Force, Sullivan County Sherriff’s Office, and the Drug Enforcement Administration. Assistant U.S. Attorney Nick Regalia represented the United States.
The investigation is a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Cleveland Doctor Pleads Guilty to Defrauding MedicareRead the Press Release
CHATTANOOGA, Tenn.– On Friday, Nov. 14, 2014, Dr. Raymond Sean Brown, 44, of McDonald, Tenn., pleaded guilty to using misbranded drugs with the intent to defraud Medicare.
Brown was initially charged in a 35-count indictment alleging crimes involving wire fraud, mail fraud, health care fraud and money laundering. However, Brown ultimately agreed to plead guilty to an information charging him with the use of misbranded drugs with the intent to defraud. As part of the plea agreement, Brown also agreed to forfeit $6.765 million U.S. currency seized from his bank accounts in December 2012, and pay an additional $717,000 in cash.
Sentencing is set for Mar. 5, 2015, in U.S. District Court in Chattanooga, at which time the United States will move to dismiss the original indictment.
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. Additionally, 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.
Brown faces a term of up to three years in prison, a fine of up to $250,000 or twice the amount of the gross pecuniary gain, and supervised release of up to one year. In the Agreed Preliminary Order of Forfeiture filed in U.S. District Court today, Brown agreed to forfeit his interest in $186,091 in a Tennessee Valley Federal Credit Union account and $6,579,517 in an Athens Federal Credit Union account. He also agreed to pay a monetary judgment in the amount of $717,359.08.
This case was investigated by the U.S. Food and Drug Administration-Office of Criminal Investigation and the U.S. Department of Health and Human Services-Office of Inspector General. Assistant U.S. Attorney Terra L. Bay represents the United States.
Adam Winters Sentenced for Extortion of Babcock and Wilcox, Y-12, LLC.Read the Press Release
KNOXVILLE, Tenn. – On Nov. 17, 2014, Adam Winters, 25, of Oneida, Tenn., was sentenced to serve three months in prison as a result of his July 2014 guilty plea to charges involving the extortion of Babcock and Wilcox, Y-12, LLC. Upon his release from prison, Winters will be supervised for one year by U.S. Probation. 17, 2014
In July 2014, Winters pleaded guilty to transmitting communications containing threats to injure the reputation of Babcock and Wilcox, Y-12, LLC., in interstate and foreign commerce, with intent to extort money and other things of value from the corporation. Babcock and Wilcox, Y-12, LLC. (Babcock and Wilcox), is a corporation that manages and operates the Y-12 National Security Complex in Oak Ridge, Tenn.
Winters admitted that he emailed Babcock and Wilcox and attempted to email the Vice President of the United States, regarding copies of slides the he possessed, which contained information he believed would injure the reputation of Babcock and Wilcox. Following the email, he used the Internet and telephone, both of which are transmitted in interstate or foreign commerce, and communicated his threat to injure their reputation through the use of these slides. After making these threats, Winters met with undercover law enforcement agents to exchange the slides for $2,500,000, that he had demanded from Babcock and Wilcox during his extortion attempt. During this exchange meeting, law enforcement officers revealed their identity and arrested him.
This case was investigated by the U.S. Department of Energy, Office of Inspector General. Assistant U.S. Attorney Brooklyn Sawyers represented the United States.
Reda Overton Sentenced to Serve 18 Months in Prison for Embezzlement and Theft from A Labor UnionRead the Press Release
KNOXVILLE, Tenn. – On Nov. 10, 2014, Reda Overton, 60, of Powell, Tenn., was sentenced to serve 18 months in prison by the Honorable Thomas A. Varlan, Chief U.S. District Judge. Upon her release from prison, she will be supervised by the U.S. Probation Office for three years. Overton was also ordered to pay $206,056.71 in restitution.
Overton pleaded guilty in May 2014 to a one-count information charging her with unlawfully and willfully embezzling over $200,000 from Locomotive Engineers, a labor union.
According to the plea agreement on file with the U.S. District Court, beginning in December 2008, Overton was employed as the Executive Secretary to the General Chairman of a Locomotive Engineers’ committee. Locomotive Engineers is a labor organization which represents bargaining unit members who are employed by Norfolk Southern, a Virginia-based railway company that ships products across state lines throughout the United States. She was paid a bi-weekly salary in exchange for her secretarial and treasury duties that consisted of processing the payroll for herself and others. Acting unlawfully and willfully with the intent to defraud, in her official capacity as an employee, Overton transferred or overpaid herself over $200,000. This was union money taken from the organization’s bank accounts and deposited into Overton’s personal bank accounts. She confessed to the embezzlement to U.S. Department of Labor investigators.
Special agents with Department of Labor investigated this case. Assistant U.S. Attorney Brooklyn Sawyers represented the United States.
Crystal Renee Dawn Poore Sentence to 27 Years in Prison for Photographing Sex Acts with Her DaughtersRead the Press Release
The Three Victims Were Between the Ages of Two and Eight
GREENEVILLE, Tenn. – On Nov.10, 2014, Crystal Renee Dawn Poore, 32, of Elizabethton, Tenn., was sentenced to serve 27 years in federal prison by the Honorable J. Ronnie Greer, U.S. District Court Judge, for three counts of production of child pornography. Upon her release from prison, she will be on supervised release for the remainder of her life.
In July 2013 a three-count indictment outlining these charges was returned against Poore by a federal grand jury sitting in Greeneville, Tenn. Poore pleaded guilty in July 2014 to all three counts. A factual basis on file with the U. S. District Court in Greeneville describes the details of the abuse, which ended with the rescue of the girls from the home by the Knoxville Police Department Internet Crimes again Children (ICAC) Task Force with assistance from Carter County Sheriff’s Department and Tennessee Department of Children Services.
U.S. Attorney Bill Killian stated, “This lengthy sentence is a deterrent to others. This defendant will no longer harm these children, nor any others. Because of the dedication and investigative skills of the Knoxville Police Department ICAC, the crimes were detected and the children quickly rescued.”
This indictment was the result of an investigation by the Knoxville Police Department ICAC. Robert M. Reeves, Assistant U.S. Attorney represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (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.
Baltazar Camacho Sentenced to 470 Months in Prison for Cocaine ConspiracyRead the Press Release
KNOXVILLE, Tenn. - On Nov 4, 2014, Baltazar Camacho, 27, of Michoacàn, Mexico, was sentenced to serve 470 months in prison by the Honorable Thomas A. Varlan, Chief U.S. District Judge. The sentence was the result of a guilty plea by Camacho on the morning of trial in April 2014 to a federal grand jury indictment charging him with conspiracy to distribute cocaine and crack cocaine, and conspiracy to commit money laundering.
Following a day-and-a-half of testimony from five witnesses, Judge Varlan found that Camacho personally distributed between 150 kilograms and 450 kilograms of cocaine, at a minimum; Camacho was aware at least half of that amount would be converted into crack cocaine and sold; Camacho was an organizer or leader of an extensive criminal activity; and Camacho was armed with a firearm while he participated in the conspiracies.
The indictment and subsequent convictions of Camacho and 15 others were the result of an 18-month investigation conducted by the Federal Bureau of Investigation, Drug Enforcement Administration, Roane County Sheriff’s Office, Harriman Police Department, Oak Ridge Police Department, Knoxville Police Department, Knox County Sheriff’s Office, Clinton Police Department, and Loudon County Sheriff’s Office. Assistant U.S. Attorney Tracy L. Stone represented the United States.
U.S. Attorney William C. “Bill” Killian remarked, “Even in a time of intensifying drug activities and fewer law enforcement resources, we will continue to pursue all those who flood our streets with illegal drugs, and particularly those who lead large conspiracies such as these. That effort will never stop.”
Knoxville Man Indicted in Hardee’s Robbery and ShootingRead the Press Release
KNOXVILLE, Tenn. - A federal grand jury in Knoxville returned a three-count indictment on Nov. 4, 2014, charging Stephen Thompson, 25, of Knoxville, with the robbery of a Hardee’s restaurant, discharging a firearm during the Hardee’s robbery, and with the robbery of a Subway restaurant. Thompson has not yet appeared in court on these charges.
The indictment alleges that Thompson robbed the Hardee’s, located at 3718 Western Avenue in Knoxville, on Nov. 10, 2009, and that he discharged a firearm during the Hardee’s robbery. In that robbery, Thompson is accused of shooting a restaurant employee in the chest, which resulted in life-threatening injuries, but the victim ultimately survived. He is also accused of robbing the Subway, located at 446 North Cedar Bluff Road in Knoxville, on Oct. 25, 2014.
If convicted, Thompson faces up to 20 years in prison and a fine of $250,000 on each of the two robbery counts. He faces a minimum mandatory term of at least 10 years and up to life in prison, which must be served consecutively to any other prison term imposed, on the discharging of a firearm count. There is no parole in the federal system.
This indictment is the result of an investigation by the Federal Bureau of Investigation Safe Streets Task Force, Knox County Sheriff’s Office, and Knoxville Police Department. Assistant U.S. Attorney Kelly A. Norris will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
Four Former East Tennessee Law Enforcement Officers and One Current Officer Indicted for ExtortionRead the Press Release
KNOXVILLE, Tenn. - On Nov. 4, 2014, a federal grand jury returned a two-count indictment against Robert E. Cummings, 61, of Knox County, a former University of Tennessee Police Officer; Jimmy W. Douglas, 43, of Knox County, a former deputy sheriff for Knox County Sheriff’s Office; Samuel T. Hardy, Jr., 42, of Knox County, a former deputy sheriff for Knox County Sheriff’s Office; and Benito D. Lopez 62, of Knox County, a former TVA Police Officer. Also, indicted was David L. Joyner, 44, of Sevier County, a detective with the Pigeon Forge Police Department.
The indictment on file with the U.S. District Court charges Cummings, Douglas, Hardy, Joyner and Lopez each with two counts of violating the Hobbs Act. Count One charges conspiracy to commit extortion under color of official right. Count Two charges attempt to commit extortion under color of official right. Under color of official right, a public official obtains a payment to which he or she is not entitled, believing that the money is being given to him or her in return for taking, withholding, or influencing official action. If convicted, each faces a maximum of 20 years in prison and a $250,000 fine on each count.
On Nov. 5, 2014, former Knox County Deputy Robbie D. Flood, pleaded guilty to an information charging him with a violation of the Hobbs Act.
This indictment is the result of an investigation conducted by the Federal Bureau of Investigation, Tennessee Valley Authority - Office of Inspector General, and Tennessee Bureau of Investigation. Assistant U.S. Attorney Jeffrey Theodore represents the United States case.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
James Glen Murphy, Jr. Sentenced to Twenty-Seven Years in Prison for Producing Child PornographyRead the Press Release
GREENEVILLE, Tenn.—On Oct. 29, 2014, James Glen Murphy, Jr., 31, of Bristol, Tenn., was sentenced to serve 27 years in prison by the Honorable J. Ronnie Greer, U.S. District Judge. The court also imposed a life term of supervised release with special conditions of release.
In July 2014, Murphy pleaded guilty to a federal grand jury indictment charging him with producing, distributing, and possessing child pornography. In sentencing Murphy, Judge Greer noted the seriousness of the offenses Murphy committed including: the fact that he victimized two identified children; the long-term impact on the two child victims; that in addition to the child pornography Murphy produced, the officers found more than 12,000 still images and more than 80 videos of child pornography; the very harsh impact that such crimes have on the fabric of our community; the need to protect the community; the high risk of recidivism for such crimes; and the need for federal courts to send the message that these are serious crimes which will be punished severely.
The indictment and subsequent conviction of Murphy were the result of an investigation conducted by the Federal Bureau of Investigation and the Bristol Tennessee Police Department. Assistant U.S. Attorney Helen Smith represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by 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.
Gregory Allen Rhea Sentenced to Serve 288 Months in Prison for Conspiring to Distribute Oxycodone and MethamphetamineRead the Press Release
GREENEVILLE, Tenn. – Gregory Allen Rhea, 38, of Morristown, Tenn., was sentenced on Oct. 27, 2014, by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 288 months in federal prison for conspiring to distribute oxycodone and methamphetamine, maintaining a place for the purpose of distributing controlled substances, and possession of firearms in furtherance of drug trafficking.
Upon his release from prison, Rhea will be supervised by the U.S. Probation Office for four years. There is no parole in the federal system. Rhea was also ordered to forfeit to the United States $75,100 and also pay a money judgment in the amount of $1,200,000, which represents the proceeds of his drug trafficking offenses.
In October 2012, Rhea and 11 others were named in an 18-count indictment charging them with drug trafficking of oxycodone, oxymorphone, and methamphetamine, firearms violations, and money laundering. The charges were the result of a lengthy investigation of individuals who traveled to Florida, Tennessee, and Georgia to obtain oxycodone from pain clinics and other illegal drugs to distribute throughout eastern Tennessee. All 12 charged in the indictment have now been convicted and sentenced.
According to his plea agreement, Rhea admitted that he organized trips to pain clinics in Florida and Tennessee to obtain oxycodone to distribute in the Eastern District of Tennessee. He also admitted that he sponsored others to travel to these clinics and, in exchange, received a portion of the oxycodone tablets prescribed to each individual. Additionally, Rhea admitted that he had directed others to travel to Georgia to obtain methamphetamine to distribute in the Eastern District of Tennessee. During the course of the conspiracy, he admitted that he was responsible for obtaining and distributing over 778,000 milligrams of oxycodone (the equivalent of nearly 26,000 dose units of 30 milligram oxycodone tablets) and 45 grams of methamphetamine.
In October 2012, Rhea was arrested at his residence in Morristown where he and co-defendant Johnny Neeley were found barricaded inside a room which contained oxycodone, oxymorphone, and three firearms. Evidence presented at Rhea’s sentencing hearing demonstrated that he continued to direct the activities of others involved in this conspiracy after his arrest by directing another individual to retrieve methamphetamine from his residence and destroy it.
This lengthy investigation was the result of the collaborative efforts of the Tennessee Bureau of Investigation, Morristown Police Department, and Hawkins County Sheriff’s Department. Assistant U.S. Attorney Suzanne Kerney-Quillen represented the United States.
Nine Medical Practitioners Indicted in Conspiracy to Distribute Controlled Pain Medication as Employees of Breakthrough Pain Therapy Center in MaryvilleRead the Press Release
KNOXVILLE, Tenn. – On Oct. 7, 2014, a federal grand jury in Knoxville returned a two-count indictment against two medical doctors (M.D.), two physician’s assistants (P.A.) and five nurse practitioners (N.P.) for conspiring to distribute oxycodone, morphine, oxymorphone, and alprazolam, by writing prescriptions for controlled substances which were not for legitimate medical purposes. Additionally, the indictment on file with the U.S. District Court alleges that these nine individuals were also involved in a conspiracy to commit money laundering. Those indicted include:
Walter David Blankenship, P.A., 37, of Maryville, Tenn.; David Eric Brickhouse, P.A., 41, of Knoxville, Tenn.; Jamie Chiles Cordes, N.P., 36, of Maryville, Tenn.; Sherry Ann Fetzer, N.P., 41, of Knoxville, Tenn.; James Brian Joyner, M.D., 45, formerly of Maryville, Tenn., but now residing in Virginia; Buffy Rene Kirkland,N.P., 38, of Maryville, Tenn.; Don Robert Lewis, Jr., N.P., 54, of Maryville, Tenn.; Donna Jeanne Smith, N.P., 60, of Greenback, Tenn.; and Deborah Gayle Thomas, M.D., 62, of Dandridge, Tenn.
All of these individuals were employed at various times by Breakthrough Pain Therapy Center in Maryville, Tenn., which was owned and operated by Sandra and Randy Kincaid during 2009 and 2010. The Kincaids, along with family members Wendi Henry and Dustin Morgan, were previously convicted for their roles in operating the pain clinic and are currently serving prison terms of 39, 69, 18, and 17 years, respectively. The pain clinic ceased operations after raids at several locations by federal and local law enforcement agents in December 2010, when agents seized significant quantities of prescription narcotic pain pills, firearms, and nearly $700,000 in cash.
If convicted, the individuals charged in this indictment face a term of up to 20 years in prison, up to $1 million in fines, and supervision by the U.S. Probation Office upon their release from prison.
This indictment resulted from a lengthy investigation by the Internal Revenue Service – Criminal Investigation, the Fifth Judicial District Drug Task Force, and the Drug Enforcement Administration. The United States will be represented in this prosecution by Assistant U. S. Attorneys Jennifer Kolman and Frank M. Dale, Jr.
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.
Assistant United States Attorney Christopher D. Poole Recognized for His Work with the Chattanooga Violence Reduction InitiativeRead the Press Release
CHATTANOOGA, Tenn. – Assistant U.S. Attorney Christopher D. Poole received the National Association of Former U.S. Attorneys Exceptional Service Award for his work with the Chattanooga Violence Reduction Act. U.S. Attorney William C. Killian presented the award plaque, on behalf of the National Association of Former U.S. Attorneys (NAFUSA), to Poole at an office ceremony on Oct. 15, 2014.
A letter from the NAFUSA which accompanied the plaque stated, “This award is given in recognition of the exemplary service provided by your Assistant to the United States Attorneys’ Office, the Department of Justice and to the citizens of the United States of America. As former United States Attorneys, we can recognize a great Assistant United States Attorney.”
U.S. Attorney William C. Killian congratulated Assistant U.S. Attorney Poole on this prestigious award and stated, “The Eastern District of Tennessee is fortunate to have many quality federal prosecutors. I am proud that Assistant U.S. Attorney Poole was recognized for his exceptional work with this important initiative with the city of Chattanooga.”
The Chattanooga Violence Reduction Initiative was initiated by the City of Chattanooga in 2013. The program aims to reduce violent crime through a multistep approach. It includes identifying a targeted focus, research and analyses of crime patterns, direct communication with violent offenders, and arrests of and sustained follow-through with individuals caught in a dynamic that pits different groups against one another in a retaliatory cycle. The initiative is based on similar models used in High Point, N.C., Boston, Chicago and other cities.
Tri-Cities Man Sentenced to 180 Months for Drug and Firearm OffensesRead the Press Release
GREENEVILLE, Tenn. – David Anthony Mantey, 41, of Gray, Tenn., was sentenced on Oct. 6, 2014, by the Honorable J. Ronnie Greer, U.S. District Judge, to serve 180 months in federal prison. Mantey was previously convicted of possession with intent to distribute crack cocaine and being a felon in possession of a firearm.
In November 2013, officers with the Johnson City Police Department observed a gold minivan driving in Johnson City, Tenn., and identified Mantey as the driver. Knowing his driver’s license had been previously revoked, they conducted a traffic stop. Mantey parked his vehicle in an alleyway, immediately exited, and attempted to flee. However, after verbal commands from the officers, he halted and returned to the car. The officers approached the vehicle, confirmed his identity, and then removed him from the vehicle for questioning. At that time, Mantey admitted to possessing a small amount of marijuana on his person. A search yielded approximately four grams of marijuana from his vest pocket, as well as $896 in various denominations. Mantey was arrested for traffic and drug violations and transported to the Washington County Detention Center. Upon arrival he was processed and searched more thoroughly, where he was found to be hiding approximately 23 grams of cocaine base (“crack”) in his underwear.
In March 2014 members of the First Judicial Drug Task Force, in cooperation with agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), arranged to purchase a firearm from Mantey using an individual working on behalf of law enforcement. After a series of calls to Mantey to coordinate the transaction, he agreed to sell a rifle and a pistol for $2,000. With law enforcement agents watching, the individual working on their behalf went to a residence in Gray, Tenn., which was the ultimately agreed upon transaction site. Mantey exited a nearby trailer upon the individual’s arrival and guided him to a parked minivan which they both entered. Mantey retrieved a black bag from the back seat of the minivan which contained a Bushmaster, Model Carbon 15, .223 caliber, semiautomatic rifle; and a Glock, model 36, .45 caliber, semiautomatic pistol. While discussing the functioning of the firearms, Mantey gave the individual a single round of Winchester, .223 caliber, ammunition. The individual gave Mantey the purchase money and both individuals departed. Subsequently, law enforcement met with the individual and recovered the firearms and ammunition.
This case was the product of cooperation between the Johnson City Police Department; First Judicial District Drug Task Force; and ATF. Assistant U.S. Attorney Nick Regalia represented the United States.
Kathy Winters Sentenced to 40 Months in Prison for Theft of Government FundsRead the Press Release
KNOXVILLE, Tenn. – On Oct. 7, 2014, Kathy Winters, 58, of Harriman, Tenn., was sentenced by the Honorable Pamela Reeves, U.S. District Court Judge, to serve 40 months in prison. Upon her release from prison, she will be under supervision of the U.S. Probation Office for three years. She was also ordered to pay a total of $428,076.94 in restitution, which represented the amount taken from three separate entities discussed below.
In May 2014, Winters pleaded guilty to a one-count information charging her with theft of government funds from the U.S. Department of Education. According to the plea agreement on file with U.S. District Court, Winters served as treasurer for the Tennessee Attendance Supervisors Steering Committee (TASSC), an organization that provides training and information to aid school attendance personnel in improving their professional competencies.
In the fall of 2012, the Tennessee Comptroller of the Treasury became aware of irregularities in the TASSC bank account and an investigative audit followed. The audit revealed that $82,636.79 was missing from the TASSC bank account during the time Winters had access to the funds. The investigation expanded to two additional entities when investigators found that she also served as federal projects administrative assistant for the Alcoa City School District and treasurer for East Tennessee Attendance Supervisors Association (ETASA), an association that provides opportunities for the continuous study of attendance problems. This broadened investigation revealed that ETASA suffered financial losses of $1,236.36. Additionally, Alcoa City School District suffered $344,203.79 in financial losses, which included federal grant money paid to the school district for special education expenses.
Winters took the money by creating false invoices which demanded payment to TASSC or ETASA, forging an approving official’s signature to the invoices, and forwarding them to Alcoa City for payment. Winters endorsed the checks issued by Alcoa City as payment for the false invoices. She then either deposited the funds into her personal account or into either the TASSC or ETASA account and then withdrew the money by a check payable to her or through an ATM withdrawal.
In addition to the invoice scheme, Winters made unauthorized personal charges on Alcoa City School District credit cards and falsified travel reimbursement requests for unauthorized travel. In both instances, she forged signatures of approving officials and submitted the credit card billing statements and travel claims to the Alcoa City for payment.
“Those who are entrusted with public funds and choose to embezzle them for their own personal use will be aggressively investigated and prosecuted,” said U.S. Attorney Bill Killian.
Agencies involved with this investigation included the Tennessee Comptroller’s Office, Financial Compliance Unit and Tennessee Bureau of Investigation. Assistant U.S. Attorney Brooklyn Sawyers represented the United States.
Fayetteville Man Sentenced to Serve over Twelve Years in Prison for Distribution of Crack CocaineRead the Press Release
CHATTANOOGA, Tenn. – On Sept. 29, 2014, Dontez Flowers, 35, of Fayetteville, Tenn., was sentenced to serve 151 months in federal prison by the Honorable Harry S. Mattice, Jr., U.S. District Judge. Flowers pleaded guilty in June 2014 to distribution of cocaine base, “crack.” Upon his release from prison, he will be subject to three years of supervised release by the U.S. Probation Office.
In the plea agreement on file with the U.S. District Court, Flowers admitted to selling five grams of crack cocaine to an individual working with law enforcement on one occasion in July 2013. He also tried to sell 20 grams of crack cocaine a few days later. Flowers admitted that he continued to sell crack cocaine even after the police confronted him.
The indictment and subsequent conviction of Flowers was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Tennessee Bureau of Investigations, and Lincoln County Sheriff’s Office. Assistant U.S. Attorney Terra L. Bay represented the United States.
Michael and Tommy Brummitt Sentenced for Being Felons in Possession of FirearmsRead the Press Release
GREENEVILLE, Tenn. – On Sept. 29, 2014, Tommy Brummitt, 43, of Elizabethton, Tenn., was sentenced by the Honorable J. Ronnie Greer, U.S. District Judge, to serve 188 months in federal prison, for being a felon in possession of a firearm. Judge Greer previously sentenced Michael J. Brummitt, 44, also of Elizabethton, on Sept. 22, 2014, to serve 54 months in federal prison for also being a felon in possession of a firearm. Upon their release from prison, each will be subject to supervision by the U.S. Probation Office for five years. There is no parole in the federal system.
Both Tommy and Michael Brummitt pleaded guilty to possession of firearms after having been previously convicted of a felony offense. Tommy Brummitt was subject to the provisions of the Armed Career Criminal Act, which provides for a minimum mandatory sentence of 15 years for possession of a firearm after three prior felony convictions for violent offenses or drug trafficking offenses.
In October 2013, shots were fired from a vehicle in which the Brummitts, who are cousins, were traveling on Dry Creek Road in Elizabethton. Shotgun pellets struck several residences and some residents suffered injuries. The Brummitts fled from officers, but were quickly apprehended by deputies with the Carter County Sherriff’s Department. Each denied being the shooter, although the shots were fired from the vehicle in which only the two Brummitts were occupants.
Law enforcement agencies participating in the joint investigation included the Carter County Sheriff’s Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney J. Gregory Bowman represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
Lonnie Greer, Jr. Sentenced for Being A Felon in Possession of FirearmsRead the Press Release
GREENEVILLE, TN – On Sept. 29, 2014, Lonnie Gene Greer, Jr., 36, of Jonesborough, Tenn., was sentenced by the Honorable J. Ronnie Greer, U.S. District Judge, to serve 180 months in federal prison. Upon his release from prison, Greer will be subject to supervision by the U.S. Probation Office for three years. There is no parole in the federal system.
Greer pleaded guilty to possession of firearms after having been previously convicted of a felony offense. He had been previously convicted of multiple aggravated burglaries in Washington County.
Greer was the subject of a firearms trafficking investigation by the Washington County Sheriff’s Department. His possession of firearms was discovered after he was arrested by the Washington County Sheriff’s Office for evading arrest. Further investigation confirmed that Greer sold multiple firearms, which he admitted were sometimes traded for illegally obtained prescription narcotics.
Law enforcement agencies participating in the joint investigation included the Washington County Sheriff’s Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney J. Gregory Bowman represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
Cleveland Man Sentenced to Ten Years for Distribution of Child PornographyRead the Press Release
CHATTANOOGA, Tenn. – On Sept. 25, 2014, Richard Vatilla, 44, of Cleveland, Tenn., was sentenced to serve 120 months in federal prison by the Honorable Curtis L. Collier, U.S. District Judge. Vatilla pleaded guilty in June 2014 to distribution of child pornography. Upon his release from prison, he will be subject to 10 years of supervised release by the U.S. Probation Office. Vatilla will also be required to register under the Sex Offender Registration and Notification Act (SORNA).
In the plea agreement on file with the U.S. District Court, Vatilla admitted to downloading and trading child pornography, and making child pornography available for downloading through a peer to peer file sharing program. He also admitted that he went online to teen chat rooms, talked to people he believed to be juveniles, and asked them to send him pictures of themselves.
The indictment and subsequent conviction of Vatilla was the result of an investigation conducted by the Internet Crimes Against Children Task Force, Department of Homeland Security Investigations Division, and Bradley County Sheriff’s Office. Assistant U.S. Attorney Terra L. Bay represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Erik R. Szczesh Sentenced to 51 Months in Federal Prison for Distribution of Child PornographyRead the Press Release
CHATTANOOGA, Tenn. – On Sept. 25, 2014, Erik Szczesh, 28, of Cleveland, Tenn., was sentenced to serve 51 months in prison by the Honorable Curtis L. Collier, U.S. District Judge.
Upon his release from prison, Szczesh will be under the supervision of the U.S. Probation Office for 10 years. He will also be subject to numerous special conditions of release which restrict his access to children and the internet.
Nashville police seized the phone of an individual who was taking pictures of children as they walked to and from school. Upon examination of the individual’s phone, they found the he had been trading child pornography with Szczesh. They also recovered a text conversation between Szczesh and this individual discussing abusing children.
Police subsequently searched Szczesh’s phone and found a total of 403 pornographic images of children and seven videos of the same, which, under the law, amounts to 928 images. When questioned by police Szczesh immediately confessed. He has agreed to pay restitution in an amount of $500.00 per victim, for a total of $3,000.
The indictment and subsequent conviction of Szczesh was the result of an investigation conducted by the Federal Bureau of Investigation. Assistant United States Attorney James T. Brooks represented the United States in the prosecution.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Chattanooga Man Sentenced to 108 Months for Attempted Armed Robbery of Jewelry StoreRead the Press Release
CHATTANOOGA, Tenn. – On Sept. 25, 2014, Diontre Danforth, 19, of Chattanooga, Tenn., was sentenced to serve 108 months in federal prison by the Honorable Curtis L. Collier, U.S. District Judge. Upon his release from prison Danforth will be subject to the supervision of the U.S. Probation Office for three years. There is no parole in the federal system.
Danforth pleaded guilty in June 2014 to aiding and abetting the brandishing of a firearm during and in relation to a crime of violence and an attempted Hobbs Act robbery. In his plea agreement on file with the U.S. District Court, Danforth admitted that he and co-defendant Gerald Jackson attempted to rob the Kennedy Jewelry store in August 2013. Jackson entered the store wearing a “Scream” mask. He was armed with an assault rifle, which he immediately used to fire a round towards the back of the store, where multiple employees and a customer were standing. Danforth had followed Jackson into the store with a laundry basket and pillowcase outstretched in his hands, which the two had planned to use to collect the merchandise that they intended to steal. However, before they were able to get any jewelry, one of the store’s managers began firing back at Jackson. Jackson and Danforth then sprinted for their own safety, with Jackson continuing to fire back at the store even after the two were outside. Jackson has also been charged and is in custody pending trial in U.S District Court, Chattanooga.
Law enforcement agencies participating in the investigation included the Chattanooga Police Department and Federal Bureau of Investigation. 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.
Georgia Man Sentenced to Fourteen Years for Conspiracy to Distribute Methamphetamine in Georgia and TennesseeRead the Press Release
CHATTANOOGA, Tenn. – On Sept. 24, 2014, Anthony Long, 42, of Chatsworth, Ga., was sentenced to serve 168 months in prison by the Honorable Harry S. Mattice Jr., U.S. District Judge. Long pleaded guilty in May 2014 to conspiracy to distribute methamphetamine. Upon his release from prison, he will be subject to three years of supervised release by the U.S. Probation Office.
Long was one of 18 individuals from Tennessee and Georgia charged in a conspiracy to transport methamphetamine from Atlanta to Polk County, Tenn., where it was distributed. In the plea agreement on file with the U.S. District Court, Long admitted that he had driven two pounds of methamphetamine from the Atlanta to Ranger, Ga., at the direction of his co-conspirators. When law enforcement attempted to stop his car, Long fled and led the officers on a high speed chase, exceeding 100 miles per hour, on Interstate 75.
The indictment and subsequent conviction of Long was the result of an investigation conducted by the Department of Homeland Security Investigations Division, Bureau of Alcohol, Tobacco, Firearms, and Explosives; Tenth Judicial District Drug Task Force; and Polk County Sheriff’s Office. Assistant U.S. Attorney Terra L. Bay represented the United States.
Dr. Robert Wayne Locklear Sentenced to Serve 24 Months in Federal Prison on Crack Cocaine Conspiracy and Health Care Fraud Conspiracy ChargesRead the Press Release
GREENEVILLE, Tenn. – On Sept. 22, 2014, Dr. Robert Wayne Locklear, 43, of Greeneville, Tenn., was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 24 months in federal prison, for his convictions of conspiracy to distribute cocaine base (crack) and conspiracy to commit health care fraud. He was also ordered to pay a total of $121,958.70 in restitution to TennCare and Medicare.
Locklear was licensed to practice medicine in both Tennessee and Virginia. He operated two businesses, Trinity Internal Medicine and Sleep and Trinity Recovery Clinic, in Greeneville, Tenn. The latter was an office based substance abuse treatment program where individuals with opioid addictions were treated with Suboxone or Subutex in an outpatient setting.
According to the plea agreement on file with the U.S. District Court, while operating these businesses, Locklear developed addictions to alcohol and crack cocaine. During the investigation, he told law enforcement agents that he began smoking crack cocaine in February 2013 and did so several times a week. By April 2013, Locklear admitted that he was smoking crack cocaine every day, before, during and after work. He also admitted that he went back to the office at night to run the Suboxone clinic and that he saw patients “with a buzz.” Locklear further admitted that he gave/distributed crack cocaine to others individuals, as well as having others cook cocaine into crack cocaine for him. He was arrested in June 2013 with approximately 6.4 grams of crack cocaine and several crack pipes in his pockets. Less than one week before that arrest, law enforcement officers found Locklear in possession of approximately four grams of crack cocaine and more crack pipes.
The plea agreement further provided that, over time, Locklear’s excessive drug and alcohol usage resulted in his coming into the office to see patients only sparingly. In order to keep his Suboxone practice going, he told his office staff to continue to see patients, call in their prescriptions for Suboxone and order urine drug screens in his absence. Locklear did so knowing that no employee/medical assistant at his practice was properly licensed or trained to provide these requisite medical services. By having his staff continue to see patients in his absence, Locklear authorized prescriptions for medications, including Suboxone, to be distributed to patients that he had not seen, had not conducted physical examinations on, and had not determined sufficient medical necessity for the prescriptions.
Evidence showed that, on numerous occasions, drug screens for Locklear’s patients came back positive for the presence of non-prescribed illegal drugs such as oxycodone, marijuana, methamphetamine and cocaine or came back negative for drugs actually prescribed by Locklear to the patient. Often, these abnormal drug screens were not properly reviewed by Locklear and the patients were not counseled as to the illegal drug usage; however, the patients routinely continued to have their Suboxone prescriptions called in anyway.
U.S. Attorney William C. Killian stated, “Dr. Locklear put the health, well-being and lives of his patients in jeopardy by his inability or unwillingness to place them ahead of his own addictions. His conviction and sentence send a message to the public that this type of conduct will not be tolerated and serve as a deterrent to other doctors who find themselves in similar situations.”
The investigation leading to this indictment and conviction was conducted by the Federal Bureau of Investigation, Tennessee Bureau of Investigation and Third District Judicial Drug Task Force. Assistant U.S. Attorney Wayne Taylor represented the United States.
Dennis Keith Gibbons Jr. Sentenced to 210 Months in Prison on Oxycodone Conspiracy ChargesRead the Press Release
GREENEVILLE, Tenn. – On Sept. 22, 2014, Dennis Keith Gibbons Jr., 37, of Elizabethton, Tenn., was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 210 months in federal prison for his leadership role in an oxycodone conspiracy centered in and around the Carter County, Tennessee area.
According to the plea agreement on file with the U.S. District Court, Gibbons stipulated that he conspired to distribute a conservative estimate of 12,500 (30 milligram) oxycodone pills in the Eastern District of Tennessee and elsewhere. He admitted to obtaining and distributing oxycodone pills from a pain clinic in Georgia since 2011. Thereafter, he sent seven individuals to Georgia to obtain pills for him, while another four individuals were selling oxycodone pills for him in Tennessee.
After the pain clinic was shut down, Gibbons began obtaining oxycodone pills from a different source of supply in Georgia. He and/or his father, a co-defendant in the conspiracy, began making weekly trips, getting anywhere from 500 to 1000 (30 milligram) oxycodone pills per trip for at least three months. Gibbons kept and sold some of these pills, but gave most of them to his father and others to sell in the Carter County, Tennessee area.
An individual working on behalf of law enforcement purchased quantities of oxycodone pills from Gibbons on five separate occasions. Officers also purchased various quantities of oxycodone pills on 13 separate occasions from his father.
In July 2013, a federal search warrant was executed at Gibbons’ residence where a shotgun, ammunition, two baggies containing approximately 79 oxycodone pills and approximately $9100 in cash were found.
Gibbons’ father, Dennis Keith Gibbons, Sr., 63, pleaded guilty in July 2014 and sentencing was scheduled for Nov. 3, 2014, before the Honorable J. Ronnie Greer, U.S. District Court Judge.
Law enforcement agencies participating in the investigation which led to the indictment and subsequent conviction of Gibbons include the Drug Enforcement Administration, Tennessee Bureau of Investigation and First Judicial District Drug Task Force, all of which provided invaluable assistance during the course of the investigation. Assistant U.S. Attorney Wayne Taylor represented the United States.
Joyce Allen Found Guilty of Wire Fraud, Mail Fraud and Money Laundering Related to Benchmark Capital, Inc.Read the Press Release
KNOXVILLE, Tenn. – On Sept. 22, 2014, Joyce Allen, 66, of Alcoa, Tenn., was found guilty by a jury in U.S. District Court in Knoxville, of charges contained in a March 2014 superseding indictment involving wire fraud, mail fraud and money laundering. Sentencing has been set for 10:00 a.m., January 13, 2015, before the Honorable Thomas A. Varlan, Chief U.S. District Judge.
Allen faces a potential term of up to life in prison, along with the forfeiture of any proceeds of the offense and the obligation to pay restitution.
In March 2014, a grand jury returned a 10-count 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.
According to facts outlined in the superseding indictment, Allen was the president of J. Allen and Associates, Inc., based in Louisville, Tenn. Through this business, Allen 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 have previously pleaded guilty and are awaiting sentencing in U.S. District Court. Candler died in March 2012 before he could be charged in the conspiracy.
The superseding indictment and subsequent conviction of Allen and the other five co-conspirators was the result of an investigation by the Internal Revenue Service, 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.
Elizabethton Man Sentenced to 188 Months in Prison for Crack Cocaine ConspiracyRead the Press Release
GREENEVILLE, Tenn. – Eullis Monroe Goodwin, 40, of Elizabethton, Tenn., was sentenced on Sept. 15, 2014, by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 188 months in federal prison. Goodwin pleaded guilty to conspiracy to distribute crack cocaine in April 2014.
Beginning in 2012, law enforcement began investigating a large-scale crack cocaine conspiracy originating out of Atlanta, Ga. As part of the conspiracy, numerous individuals trafficked kilogram quantities of powder cocaine to Johnson City. To transport and distribute the drugs, coconspirators used a series of rental cars procured in Georgia. Upon arrival in Johnson City, the drugs were manufactured into crack cocaine and then distributed throughout the area. Goodwin was one of those distributors, dealing in multi-ounce quantities. The resulting drug sale proceeds were subsequently used to procure additional powder cocaine and repeat the cycle of distribution.
This conspiracy involved multiple individuals. Coconspirators who have already been convicted and sentenced include: Tavares Lashaun Dalton, 36, of Covington, Ga., 240 months; Marcus Lavoya Holliman, 36, of Atlanta, Ga., 210 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, age 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. Three more have been convicted and are awaiting sentencing in Greeneville. Others are still awaiting prosecution.
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 United States Attorney Nick Regalia represented the United States.
This case was a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Coffee County Man Sentenced to Serve 24 Years for Possession of A Firearm by A FelonRead the Press Release
CHATTANOOGA, Tenn. – On Sept. 15, 2014, Victor Stitt, 32, of Manchester, Tenn., was sentenced to serve 290 months in prison by the Honorable Harry S. Mattice Jr., U.S. District Judge. The sentence was the result of a conviction after a jury trial in April 2014.
During trial, the jury learned that Coffee County Sheriff’s Deputies responded to a domestic violence assault call at the residence of Stitt’s then girlfriend, after receiving information that he had assaulted her and threatened her with a handgun. He had left the scene before the deputies arrived, but was subsequently located at his family’s house in Cannon County, Tenn. At that time, Stitt was within arm’s reach of a handgun.
Stitt’s lengthy sentence was a result of his classification as an armed career criminal, which was based his nine prior convictions for aggravated burglary. As a result, he faced a mandatory sentence of at least 15 years in prison.
The indictment and subsequent conviction of Stitt was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and Coffee County Sheriff’s Office. Assistant U.S. Attorneys Terra L. Bay and Meredith J. Edwards represented the United States at trial.
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.
Todd Adam Rigney Sentenced to 16 Years in Federal Prison for Distribution of Child PornographyRead the Press Release
GREENEVILLE, Tenn. – On Sept. 8, 2014, Todd Adam Rigney, 44, of Morristown, Tenn., was sentenced to serve 200 months in prison by the Honorable Ronnie Greer, U.S. District Judge.
Upon his release from prison, Rigney will be under the supervision of the U.S. Probation Office for the remainder of his life. He will also be subject to numerous special conditions of release which restrict his access to children and the internet. He has remained in custody since January 2014.
Rigney pleaded guilty in May 2014 to a federal grand jury indictment charging him with the distribution, receipt and possession of child pornography. He received and distributed the child pornography from his home in Morristown, Tenn.
The indictment and subsequent conviction of Rigney was the result of an investigation conducted by the Morristown Police Department and Knoxville Police Department Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Helen Smith represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Ray Dwight Sluss Sentenced to 17 Years in Federal Prison for Receipt of Child PornographyRead the Press Release
GREENEVILLE, Tenn. – On Sept. 11, 2014, Ray Dwight Sluss, 49, of Johnson City, Tenn., was sentenced to serve 210 months in prison by the Honorable Leon Jordan, Senior U.S. District Judge. Sluss pleaded guilty in February 2014 to a federal indictment charging him with the receipt and possession of child pornography.
Upon his release from prison, Sluss will remain on federal supervised release for the remainder of his life. He is also subject to numerous special conditions of release which restrict his access to children and the internet. He has remained in custody since July 2013.
Sluss, purchased polygraph counter-measures while he was on supervised release by the Tennessee Board of Probation and Parole for a previous offense. During a search of his home, state court probation officers and other law enforcement officers found more than 18,000 images of child sexual abuse on external hard drives which were concealed in his home. He physically attacked some of the law enforcement officers.
The indictment and subsequent conviction of Sluss was the result of an investigation conducted by the Federal Bureau of Investigation, Tennessee Board of Probation and Parole, and Washington County Sheriff's Office. Assistant United States Attorney Helen Smith represented the United States in the prosecution.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Attorney General Recognizes District EmployeesRead the Press Release
WASHINGTON – Assistant U.S. Attorneys (AUSAs) Gregg L. Sullivan, Perry H. Piper, Jeffrey E. Theodore, and A. William Mackie of the U.S. Attorney’s Office in the Eastern District of Tennessee were four of 243 members of the Department of Justice recognized by Attorney General Eric Holder and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 30th annual Director’s Awards Ceremony today in Washington D.C.
The Eastern District of Tennessee was one of 44 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
AUSAs Piper and Sullivan were recognized for the successful prosecution of Walter Cardin, a safety manager for the Shaw Group, a Tennessee Valley Authority (TVA) nuclear power plant contractor. Cardin falsified injury information at three TVA nuclear power plant sites for several years and hid and misclassified injuries so that the Shaw Group could collect safety bonuses of over $2.5 million from TVA. Cardin’s fraud impaired the safety of the work environment at nuclear sites. The prosecution team reviewed over 500,000 documents, interviewed hundreds of individuals, and presented over 60 witnesses during a 10-day trial to establish Cardin’s guilt. After conviction on all counts, Cardin was sentenced to 78 months in prison.
AUSAs Theodore and Mackie were recognized for their dedication and exemplary skills in the successful prosecution of Darren Huff. Huff, a militia leader and a self-proclaimed “potential domestic terrorist,” travelled to Madisonville, Tenn., with other armed militia members for the purpose of arresting public officials and taking over the courthouse. Huff and his militia followers abandoned their plan when they were met with an overwhelming law enforcement presence. Although prosecution options were limited, AUSAs Theodore and Mackie creatively employed an obscure, seldom-used criminal statute to charge Huff. Although there had been no reported convictions under the statute, the AUSAs determined the offense of transporting a firearm in interstate commerce with the intent to commit a civil disorder was a viable charge. They skillfully managed fearful witnesses at trial in order to secure a conviction in the highly-publicized case.
In his prepared remarks to awardees, Attorney General Holder said, “Locally, nationally, and internationally, you represent the very best that this Department has to offer. Your work embodies our ongoing commitment – not merely to win cases, but to do justice; to protect our fellow citizens from crime, violence, and terrorism; to empower the most vulnerable among us; and to uphold the rule of law.”
EOUSA Director Monty Wilkinson echoed those sentiments, saying to the recipients, “You have persevered, and remained focused and motivated – achieving remarkable results in work that makes a difference in the lives of citizens across our great country. The vast scope of your collective accomplishments is nothing short of exceptional.”
“The Eastern District of Tennessee is fortunate to have many quality federal prosecutors. The awards given to these particular AUSAs highlight their accomplishments and achievements in cases involving national security concerns, the highest priority for the Department of Justice. It is gratifying that these AUSAs are recognized nationally for their exceptional work,” said U.S. Attorney Bill Killian.
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Four Indicted for Fraud Against Government Contracting ProgramsRead the Press Release
GREENEVILLE, Tenn. – A federal grand jury in Greeneville returned an indictment on Aug. 12, 2013, against Ricky Anthony Lanier, 47, and Katrina Reshina Lanier, 40, of LaGrange, N.C.; Latoya Montrevette Speight, 37, of Snow Hill, N.C.; and Emanuel Louis Hill, 47, of Louisville, Ky., for wire fraud, conspiracy to commit wire fraud, and major fraud against the United States.
These individuals appeared in court on Sept. 9, 2014 before U.S. Magistrate Judge Dennis Inman and pleaded not guilty. All were released on bond pending trial, which has been set for Nov. 18, 2014 in U.S. District Court, in Greeneville, Tennessee.
If convicted, they all face a term of 20 years in prison as to each wire fraud charge and up to 10 years in prison for the charges of major fraud against the United States. Additionally, they face fines of up to $250,000 and up to three years of supervised release as to each count. The indictment also seeks forfeitures of approximately $15 million as to the Laniers and Speight and approximately $5 million as to Hill.
Details of this conspiracy are included in the indictment on file with the U.S. District Court, which alleges that the Laniers, Speight, and Hill conspired from November 2005 to April 2013 to defraud the United States government through a scheme to fraudulently obtain federal contracts intended to be awarded to businesses lawfully participating in the Small Business Administration’s 8(a) Business Development program and the Department of Veterans Affairs’ Service-Disabled Veteran-Owned Small Business Concern program.
This indictment is the result of an investigation by Department of Veterans Affairs Office of Inspector General, Department of Interior Office of Inspector General, Small Business Administration Office of Inspector General, and United States Secret Service, with assistance from the National Park Service and General Services Administration Office of Inspector General. Assistant U.S. Attorneys Neil Smith and David Gunn will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
Richard Shane Mabe and Timothy Greer Sentenced for Johnson County Armed CarjackingRead the Press Release
GREENEVILLE, Tenn. – On Sept. 8, 2014, Richard Shane Mabe, 35, of Mountain City, Tenn., was sentenced by the Honorable J. Ronnie Greer, U.S. District Judge, to serve 240 months in prison. Upon his release from prison, he will be subject to supervision by the U.S. Probation Office for five years. There is no parole in the federal system.
Timothy Greer, 31, of Creston, N.C., was previously sentenced by Judge Greer in August 2014 to serve 188 months in prison. Greer will also be subject to five years of supervision by the U.S. Probation Office upon his release from prison.
Both Mabe and Greer pleaded guilty in June 2013 to carjacking an individual in Johnson County and brandishing a firearm in furtherance of the carjacking. Mabe, who was wanted on an outstanding warrant, and Greer led officers on a high speed chase through Mountain City into Johnson County. During the chase, Mabe fired shots at officers from the moving car. When the car in which Mabe and Greer were traveling began to falter, they pulled into a convenience store and took a customer’s car at gunpoint. Shortly thereafter, officers were able to force the pair off the road and take them into custody.
“These armed and dangerous criminals deserved and received lengthy sentences for their actions. Sentences such as these deter others from committing such violent acts,” said U.S. Attorney Bill Killian.
Law enforcement agencies participating in the joint investigation included the Mountain City Police Department, Johnson County Sheriff’s Department, Tennessee Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney J. Gregory Bowman represented the United States.
Renata Galvan Sentenced to Five Years in Prison for Wire Fraud Conspiracy and Aggravated Identity TheftRead the Press Release
KNOXVILLE, Tenn. – On Sept. 8, 2014, Renata Rochelle Galvan, 52, of Mission, Tex., was sentenced to serve 60 months in prison by the Honorable Pamela L. Reeves, U.S. District Judge for the Eastern District of Tennessee. Judge Reeves further ordered Galvan to pay $1,031,070.09 in restitution to the victim, Telecheck, and imposed a term of supervised release of three years upon her release from prison.
Galvan pleaded guilty in April 2013 to a federal indictment charging her with conspiracy to commit wire fraud and aggravated identity theft. She, her husband, and her sister conspired in a scheme to negotiate counterfeit checks at retailers in Tennessee, Arkansas, North Carolina, South Carolina, Georgia, Virginia, West Virginia, Kentucky, and Texas, resulting in losses in excess of $1 million. The conspirators were able to steal the identities of people who had indicated on social media that they “liked” certain retailers. The trio posed as persons whose identities they stole to negotiate counterfeit checks to purchase electronics and other merchandise, which they re-sold on an Internet auction website, and prepaid credit cards.
The indictment and subsequent conviction of Galvan was the result of an investigation conducted by the U.S. Secret Service. Assistant U.S. Attorney Matthew T. Morris represented the United States.
James Robert Morton Sentenced to over Seven Years in Prison for Distribution of Child PornographyRead the Press Release
KNOXVILLE, Tenn. – On Sept. 3, 2014, James Robert Morton, 46, of Rockford, Tenn., was sentenced to serve 88 months in prison by the Honorable Leon Jordan, U.S. District Judge. Morton pleaded guilty in August 2013 to federal charges of knowingly distributing child pornography.
Upon his release from prison, Morton will serve a life term of supervised release during which his activities will be supervised by the U.S. Probation Office. Morton was further ordered to pay $4,000 in restitution to victims whose digital images were distributed by him. Also, as a result of the conviction, the federal Sex Offender Registration and Notification Act will require Morton to register upon his release from prison with the state sex offender registry anywhere he resides, is employed, or is a student.
The conviction and sentencing of Morton was the result of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew T. Morris represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Daughter of Breakthrough Pain Therapy Center Owners Sentenced to Serve Eighteen Years in PrisonRead the Press Release
KNOXVILLE, Tenn. – On Sept. 4, 2014, Wendi Henry, 45, of Blount County was sentenced to serve 216 months in prison by the Honorable Thomas A. Varlan, Chief U.S. District Judge.
After a jury trial in October 2013, Henry was convicted of conspiracy to distribute oxycodone and other controlled substances in conjunction with her role in the operation of Breakthrough Pain Therapy Center in Maryville. Henry’s parents, Randy and Sandra Kincaid, the co-owners of Breakthrough, and her brother Dustin Morgan, were also convicted and previously sentenced.
These charges and subsequent convictions resulted from a lengthy investigation by the Internal Revenue Service – Criminal Investigation, Fifth Judicial Drug Task Force, and Drug Enforcement Administration. The pain clinic ceased operations when it was raided by federal and local law enforcement agents in December 2010, where agents seized significant quantities of prescription narcotic pain pills, firearms, and nearly $700,000 in cash.
“Thanks to the cooperative efforts of the federal, state and local agencies who investigated this case, all of those involved received lengthy sentences for their criminal conduct,” said U.S. Attorney Bill Killian.
Assistant U.S. Attorneys Jennifer Kolman and Frank M. Dale, Jr. represented the United States during the trial and sentencing.
Chattanooga Men Sentenced in Upper East Tennessee for Crack Cocaine ConspiracyRead the Press Release
GREENEVILLE, Tenn. – Ladarius Lebron Blunt, 27, of Chattanooga, Tenn., and Jeremy Jermaine Whatley, 29, also of Chattanooga, Tenn., were sentenced on Sept. 3, 2014, by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 188 months and 60 months, respectively, in federal prison. Both Blunt and Whatley were previously convicted of conspiracy to distribute crack cocaine.
Beginning in 2011, law enforcement began investigating a large-scale crack cocaine conspiracy originating out of Chattanooga. As part of the conspiracy, numerous individuals, including Blunt and Whatley, trafficked kilogram quantities of crack cocaine to Johnson City for resale. Private vehicles, taxi cabs, and public transportation were commonly used to transport the drugs. Many of the coconspirators had ties to street gangs based in Chattanooga, including the Rollin’ 60’s Crips and the Woodlawn Crips. Upon arrival in Johnson City, Blunt, Whatley and others would distribute their drugs, return to Chattanooga with their drug sale proceeds, purchase additional drugs, and repeat the cycle.
As part of the investigation, law enforcement conducted a series of controlled drug transactions with Blunt, Whatley and other coconspirators. On two separate occasions, Blunt sold crack cocaine to individuals working on behalf of law enforcement. On two other occasions, Whatley did the same. Subsequent police actions found both Blunt and Whatley to be in possession of crack cocaine with intent to distribute.
One coconspirator remains to be sentenced in Greeneville. Numerous others are being prosecuted in Chattanooga.
This long term investigation was the product of a partnership between the Johnson City, Tennessee Police Department; Chattanooga, Tennessee Police Department; Federal Bureau of investigation; and the Drug Enforcement Administration. Assistant United States Attorney Nick Regalia represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
This case was also 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.
Seevers Sentenced to 27 Years in Prison for Attempted Murder and Aggravated Sexual Abuse by Force in Great Smoky Mountains National ParkRead the Press Release
KNOXVILLE, Tenn. – On Aug. 28, 2014, William E. Seevers, 48, with a last known address in Atmore, Ala., was sentenced to serve 27 years in prison by the Honorable Thomas Varlan, U.S. District Judge. Seevers pleaded guilty in April 2014 to attempted murder and one count of aggravated sexual abuse by force.
His convictions arose out of his attack on a woman in June 2012 on the Gatlinburg Trail in the Great Smoky Mountains National Park. Seevers used a knife during the attack, stabbed the victim several times and raped her. The victim ultimately was able to crawl to a road where she hailed people for assistance. She was flown by helicopter to a hospital for treatment of her injuries. A DNA sample was obtained from the victim at the hospital, which the Federal Bureau of Investigation (FBI) was able to analyze and determine that Seevers had committed these crimes. He was later found in an Alabama prison serving time for other crimes, and was returned to this district to stand trial.
The victim appeared in court, provided a victim impact statement to the court, and told Judge Varlan about the trauma she suffered and the impact the crime was still having on her life. She also indicated that she was satisfied with the resulting sentence and that she was grateful that Seevers can never hurt anyone again.
This investigation was conducted by the National Park Service and Federal Bureau of Investigation. Assistant U.S. Attorney Jennifer Kolman represented the United States.
Brandy Joe Charles and Anthony Robert Clifton Sentenced for the Armed Robbery of the Tennessee State Bank in NewportRead the Press Release
GREENEVILLE, Tenn. – On Aug. 27, 2014, Brandy Joe Charles, 40, of Franklin, N.C., and Anthony Robert Clifton, 23, of Houston Texas, were each sentenced by the Honorable J. Ronnie Greer, U.S. District Judge, for their roles in the robbery of Tennessee State Bank in Newport, Tenn. Charles was sentenced to serve 188 months in prison and Clifton was sentenced to serve 120 months in prison.
Upon their release from prison, each will be subject to supervised release under the supervision of the U.S. Probation Office for five years. There is no parole in the federal system.
Both Charles and Clifton pleaded guilty to the December 2012 bank robbery of the Tennessee State Bank and to brandishing a firearm in furtherance of the robbery. Charles and Clifton have also been indicted in the Northern District of Georgia with bank robbery of the Suntrust Bank in Gainesville, Ga., and with brandishing a firearm in furtherance of this robbery. If convicted in Georgia, both face a minimum mandatory sentence of 25 years and up to life in prison, which must be served consecutive to the sentence imposed in Tennessee.
U.S. Attorney William C. Killian praised the cooperative efforts of the Newport Police Department and FBI for the investigation of this case resulting in lengthy sentences for these armed and dangerous individuals. “These individuals were sentenced appropriately for their violent criminal acts. Fortunately, the victims in this robbery were not physically harmed. The U.S. Attorney’s Office will continue to vigorously prosecute cases involving violent acts such as these,” said Killian.
Law enforcement agencies participating in the joint investigation included the Newport Police Department and Federal Bureau of Investigation. Assistant U.S. Attorney J. Gregory Bowman represented the United States.
Knoxville Man Sentenced to Three Years in Prison for Defrauding His Elderly Great AuntRead the Press Release
KNOXVILLE, Tenn. – On Aug. 27, 2014, Mark Kevin Tudor, 42, of Knoxville, Tenn., was sentenced to serve 36 months in federal prison by the Honorable Pamela L. Reeves, U.S. District Judge for the Eastern District of Tennessee. Tudor pleaded guilty in April 2014 to federal wire fraud charges.
As part of the sentence imposed, upon his release from prison Tudor will be on supervised release for a period of three years. The Court further ordered Tudor to pay the victim $266,227.80 in restitution.
The investigation determined that Tudor abused a position of trust after having been granted a power-of-attorney by his 93 year-old great aunt, who suffered from a visual disability and needed assistance with her financial affairs. Without his great aunt’s permission or authority, Tudor systematically depleted the victim’s bank and credit union account and life insurance policy. In total, Tudor stole over $267,000 from the victim before the fraud was discovered, which nearly depleted the victim’s life savings. According to a written statement by the victim read in court, when the victim discovered the fraud only $347 remained in her credit union account, which had held over $200,000 before the theft.
U.S. Attorney William C. Killian emphasized the importance of the prosecution of fraud committed against the elderly. “Senior citizens are among the most vulnerable members of our society to financial crimes. Those who take advantage of the trust placed in them by the elderly, by defrauding them in violation of federal law, will be investigated and prosecuted,” said Killian.
This case was jointly investigated by the Knoxville Police Department and the U.S. Postal Inspection Service. Assistant U.S Attorney Matthew Morris represented the United States.
Georgia Man Sentenced to 120 Months for Crack Cocaine ConspiracyRead the Press Release
GREENEVILLE, Tenn. – On Aug. 27, 2014, Micah Antwan Still, 25, of Covington, Ga, was sentenced by the Honorable J, Ronnie Greer, U.S. District Court Judge, to serve 120 months in federal prison. Still had previously been convicted of conspiracy to distribute crack cocaine.
In 2012 law enforcement began investigating a large-scale crack cocaine conspiracy originating out of Atlanta. As part of the conspiracy, numerous individuals, including Still, trafficked kilogram quantities of powder cocaine to Johnson City. Still facilitated the procurement of a series of rental cars in Georgia which were used to transport and distribute the drugs. Upon arrival in Johnson City, the drugs were manufactured into crack cocaine and then distributed throughout the area. The resulting drug sale proceeds were subsequently used to procure additional powder cocaine and repeat the cycle of distribution.
Individuals involved in this conspiracy who have already been sentenced include: Tavares Lashaun Dalton, 36, of Covington, Ga., who was sentenced to serve 240 months in prison; Marcus Lavoya Holliman, 36, of Atlanta, who was sentenced to serve 210 months in prison; Devin Deonte Blalock, 20, of Jonesboro, Ga., who was sentenced to serve 120 months in prison; Kwanza Tarveze Worthy, 20, of Atlanta, who was sentenced to serve 120 months in prison; Don Juan Glass, Jr., 22, of Atlanta, who was sentenced to serve 120 months in prison; Uhamma Castillo Delgado, II, 24, of Johnson City, Tenn., who was sentenced to serve 120 months in prison; Demario Jenard Serchion, 29, of Atlanta, who was sentenced to serve 77 months in prison; and Cody Alan Sherrill, 22, of Jonesborough, Tenn., who was sentenced to serve 41 months in prison. Five others remain to be sentenced in Greeneville, while still others are awaiting prosecution for their involvement in the conspiracy.
This long term investigation was the product of a partnership between the Johnson City, Tennessee Police Department; the First Judicial District Drug Task Force; and the Drug Enforcement Administration. Assistant United States Attorney Nick Regalia represented the United States.
This case was a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
U.S. Attorney William C. Killian Hosts 2014 Eastern District of Tennessee Reentry Summit in ChattanoogaRead the Press Release
CHATTANOOGA, Tenn. – On Tuesday, August 19, 2014, the 2014 Eastern District of Tennessee Reentry Summit, Working Together for a Solution, was hosted by William C. Killian, U.S. Attorney for the Eastern District of Tennessee, at Chattanooga State Community College.
Approximately 80 individuals from the Tennessee State Department of Corrections, state and local law enforcement, and various service provider representatives attended the summit. Presenters included representatives from Middle Tennessee Community Reentry; Tennessee Mental Health Cooperative; The Next Door, Inc.; Familes Free, Inc.; Veteran’s Justice Outreach, Department of Veteran’s Affairs; Franklin County Drug Court; Tennessee Department of Probation and Parole; U.S. Probation; City of Chattanooga; and U.S Attorney’s Office.
At the direction of the Attorney General, in early 2013 the Justice Department launched a comprehensive review of the criminal justice system in order to identify reforms that would ensure federal laws are enforced more fairly and—in an era of reduced budgets—more efficiently. Specifically, this project identified five goals:
• To ensure finite resources are devoted to the most important law enforcement priorities;
• To promote fairer enforcement of the laws and alleviate disparate impacts of the criminal justice system;
• To ensure just punishments for low-level, nonviolent convictions;
• To bolster prevention and reentry efforts to deter crime and reduce recidivism;
• To strengthen protections for vulnerable populations.
As part of its review, the Department of Justice studied all phases of the criminal justice system—including reentry—to examine which practices are most successful at deterring crime and protecting the public, and which aren’t. The review also considered demographic disparities that have provoked questions about the fundamental fairness of the criminal justice system.
U.S. Attorney Bill Killian said, “The goal of reentry is reduction of crime and recidivism. Due to the knowledge and expertise of the presenters, representatives attending from the various agencies in the state, local and federal criminal justice systems were able to take away useful information that will help them implement reentry objectives."
(Summit Picture and Caption )
Pill Mill Owner Sentenced to 39 Years in PrisonRead the Press Release
KNOXVILLE, Tenn. – On Aug. 18, 2014, Sandra Kincaid, 63, of Maryville, Tenn., was sentenced to serve 470 months in prison by the Honorable Thomas A. Varlan, Chief U.S. District Judge.
After a jury trial in October 2013, Kincaid was convicted of drug and money laundering offenses in conjunction with Breakthrough Pain Therapy Center in Maryville. Kincaid’s husband and co-owner of Breakthrough, Randy Kincaid, along with her son, Dustin Morgan, were also convicted and previously sentenced. Kincaid’s daughter, Wendi Henry, was convicted and is in custody awaiting sentencing.
These charges and subsequent conviction of Kincaid and co-defendants resulted from a lengthy investigation by the Internal Revenue Service – Criminal Investigation, Fifth Judicial Drug Task Force, and Drug Enforcement Administration. The pain clinic ceased operations when it was raided by federal and local law enforcement agents in December 2010, where agents seized significant quantities of prescription narcotic pain pills, firearms, and nearly $700,000 in cash.
“The Federal Sentencing Guidelines provide suggested ranges of incarceration for those who are found guilty of violating federal law, including the most serious offenders. Kincaid disbursed highly addictive drugs to many people over a long period of time. Thanks to the intense and cooperative work of the federal, state and local agencies who investigated this case, she received a lengthy sentence for her criminal conduct,” said U.S. Attorney Bill Killian.
Assistant U.S. Attorneys Jennifer Kolman and Frank M. Dale, Jr. represented the United States during the trial and sentencing.
Jonathan Mendhein Sentenced to Sixty Months in Prison for Receipt and Possession of Child PornographyRead the Press Release
KNOXVILLE, Tenn. – On Aug. 14, 2014, Jonathan Mendheim, 35, of Indianapolis, Ind., was sentenced by the Honorable Leon Jordan, Senior U.S. District Judge, to serve 60 months in prison for receipt and possession of child pornography. Upon his release from prison he will be under supervised release for 20 years. Additionally, he was ordered to pay $3500 in restitution to the victims.
In January 2014, Mendheim pleaded guilty in U.S. District Court in Knoxville to these charges. Details of the crimes committed are outlined in the plea agreement on file with U.S. District Court.
This investigation was conducted by the Knoxville Police Department Internet Crimes Against Children Task Force, Homeland Security Investigations, Knoxville and Cherry Hill, New Jersey. Assistant U.S. Attorney Jennifer Kolman represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (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.