Eastern District of Tennessee
Press releases recorded for this federal judicial district.
Cleveland Man Sentenced to Serve 33 Years in Prison for Production of Child PornographyRead the Press Release
CHATTANOOGA, Tenn. – Jerry Ray Tyler, Jr., 30, of Cleveland, Tenn., was sentenced on June 6, 2013, by the Honorable Curtis L. Collier, U.S. District Court Judge, to serve 400 months in federal prison.
Tyler was charged in a November 2012 indictment with seven counts of production of child pornography by a parent; 12 counts of distribution of child pornography; and eight counts of receipt of child pornography. In February 2013, Tyler pleaded guilty to one count of production of child pornography by a parent and one count of distribution of child pornography. Tyler faced a maximum of 30 years for each count of production of child pornography and a maximum of 20 years for each count of distribution or receipt of child pornography. Judge Collier ordered the maximum sentence for each offense and then ordered the sentences to run partially consecutive to each other to reach the total sentence of 400 months. This sentence is to be followed by 20 years of supervised release.
This investigation began with an Internet Crimes Against Children Task Force Officer acting on a lead from the National Center for Missing and Exploited Children. That lead resulted in a search of Tyler’s house, computers and cellular phone. The electronics were found to contain the images of child pornography, including images taken by Tyler of two minor children.
Agencies involved in this investigation included the Federal Bureau of Investigations, Violent Crimes Against Children Task Force, Department of Homeland Security, Investigations Division, and Bradley County Sheriff’s Office, Internet Crimes Against Children Task Force. Terra L. Bay, Assistant U.S. Attorney represented the United States.
This case was brought as part of Project Safe Childhood (PSC), a Department initiative launched in 2006 that aims to combat the proliferation of technology-facilitated sexual exploitation crimes against children. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal 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 visit ProjectSafeChildhood.gov
Former Greeneville, Tennessee Pharmacist Sentenced to Serve 63 Months in PrisonRead the Press Release
GREENEVILLE, Tenn. – Robert David McNeese, 39, of Greeneville, Tenn., was sentenced on June 4, 2013, by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 63 months in federal prison. McNeese was convicted for his participation in an oxycodone conspiracy in Greeneville, Tenn., which involved his illegal diversion of approximately 20,000 oxycodone pills.
McNeese, a former supervisory pharmacist and part owner of Corley’s Pharmacy in Greeneville, Tenn., illegally diverted these oxycodone pills from the pharmacy primarily to five other individuals: Chucky Joe Copas, 42, of Johnson City, Tenn., Jimmy Lee Hodges, 39, of Johnson City, Tenn., Terry Lee Scalf, 42, of Johnson City, Tenn., Scottie Wayne Leach, 39, of Watauga, Tenn., and George Eugene Copas, 42 of Johnson City, Tenn. These individuals were all indicted in federal court in the same case and obtained the pills from McNeese for their own consumption and for resale in the Eastern District of Tennessee. Each was previously sentenced by U.S. District Court Judge Greer to 92, 46, 156, 30 and 41 months in prison, respectively.
Law enforcement agencies participating in the investigation which led to the indictment and subsequent conviction of McNeese and his co-defendants include the Third Judicial District Drug Task Force, Federal Bureau of Investigation, Greeneville City Police Department and Drug Enforcement Administration Diversion, all of which both provided invaluable assistance during the course of the investigation. Assistant U.S. Attorney Wayne Taylor represented the United States.
United States Attorney William C. Killian stated, “We are pleased with the sentence in this case and believe it reflects the seriousness of the crimes committed.”
Paul Adams Sentenced to 36 Months in Federal Prison on Federal Tax Evasion ChargesRead the Press Release
Second Conviction for Former CPA and IRS Revenue Agent
GREENEVILLE, Tenn.-- On June 3, 2013, U.S. District Judge J. Ronnie Greer sentenced Paul Adams, 69 of Kingsport, Tenn., to serve 36 months in prison for federal tax evasion convictions.
Information at the sentencing hearing revealed that Adams formed a professional employer organization, employing 500 employees for 23 client companies. Adams performed clerical services for the 23 companies, including withholding federal payroll taxes and filing federal payroll tax returns. During a 17-month period of time, Adams calculated and collected the correct amount of withholding and payroll taxes, but reported and paid a much smaller number to the Internal Revenue Service and the Social Security Administration. Adams pocketed more than $2.5 million paid by his client companies and the employees which should have been paid to the Internal Revenue Service.
Adams disclosed his fraud after the IRS selected one of the client companies for random audit. He assisted the IRS in properly reporting the employees’ earnings to the Social Security Administration and assisted the United States in its investigation of others.
Judge Greer ordered Adams to pay restitution to the Internal Revenue Service in the amount of $2,535,745. Judge Greer also ordered Adams to remain on supervised release for three years after his release from prison and imposed special conditions restricting Adams’ ability to conduct any business dealings or offer any professional advice without approval by his probation officer. Judge Greer noted that Adams’ offense was a very serious one based on the circumstances of his conduct and his prior conviction for federal tax fraud in the 1980s. He cited the sophisticated nature of the offense and Adams’ abuse of a position of trust and use of special skills, Adams’ high risk to reoffend in the future, and the need to deter others during the sentencing hearing.
The information and subsequent conviction of Paul Adams was the result of an investigation conducted by the Internal Revenue Service - Criminal Investigation. Assistant U.S. Attorney Helen Smith represented the United States.
Former Gatlinburg Resident Sentenced to Serve 18 Months in Prison for Tax OffensesRead the Press Release
KNOXVILLE, Tenn. – David Lee Miner, 61, formerly of Gatlinburg, was sentenced on May 29, 2013, by the Honorable Thomas Phillips, U.S. District Court Judge, to serve 18 months in federal prison. In addition, Miner was ordered to pay restitution to the IRS for unpaid taxes in the amount of $36,205.10.
Miner was indicted on March 15, 2011, and was convicted at trial on March 28, 2013, on one count of impeding or obstructing the administration of the Internal Revenue Laws and two counts of failing to file federal income tax returns. During a six-day trial, the United States presented evidence of Miner’s efforts to obstruct the lawful functions of the Internal Revenue Service and his failure to file tax returns for the 2004 and 2005 tax years. The jury heard extensive testimony regarding Miner’s sale of services that were designed to assist customers in evading income taxes. In particular, the United States offered evidence of Miner’s service for the purported decoding and correcting clients’ IRS files, which Miner stated would prevent the IRS from being able to assess taxes. In addition, Miner set up “common law trusts,” which were intended to place clients’ income and possessions out of the reach of the IRS. In connection with both services, Miner would prepare frivolous and threatening letters to IRS employees and others in an effort to hamper the collection of taxes.
With respect to the sentencing, United States Attorney William C. Killian stated the following: "This conviction and sentence will deter others who not only avoid paying income taxes, but advise taxpayers how to avoid paying taxes."
This investigation was conducted by IRS Criminal Investigation. Assistant U.S. Attorney Frank M. Dale, Jr. represented the United States.
German Rolando Vicente-Sapon Sentenced to Serve 15 Years in Prison for Transporting A Minor Across the Mexican Border for Unlawful Sexual ActivityRead the Press Release
Vicente had faced a 10-year mandatory minimum
CHATTANOOGA, Tenn. – On Thursday, May 23, 2013, German Rolando Vicente-Sapon, 41, of Guatemala, was sentenced by the Honorable Curtis Collier, U.S. District Judge, to serve 188 months in federal prison.
Following a three-day trial, a jury convicted Vicente-Sapon in November 2012 for transporting a minor across the Mexican border for unlawful sexual activity and two additional smuggling charges, also involving the minor who was an alien from Guatemala. According to proof presented at trial, the victim was 16 years old and facing an arranged marriage in Guatemala when Vicente-Sapon, who was then in his thirties, offered to help her come to the United States for a better life. Testimony showed that Vicente-Sapon paid $2000 for others to smuggle her to Chattanooga, Tenn. Once she arrived, he coerced her into having sexual relations with him and she relented, believing she had no other choice.
During the sentencing hearing, Vicente-Sapon claimed that he had fallen in love with the girl, a statement that Judge Collier found unbelievable.
Agencies involved in this investigation included Homeland Security Investigations and the Federal Bureau of Investigation. Jay Woods, Assistant United States Attorney, represented the United States.
Arrests Made in Conjunction with Benchmark InvestigationRead the Press Release
KNOXVILLE, Tenn. - On Thursday, May 23, 2013, four individuals were taken into custody by federal agents in conjunction with an investigation involving Benchmark Capital, Inc. Brian Murphy, Paulynn Wright, and Dona Rector were arrested Thursday morning by federal agents. Tiffiny Thompson voluntarily surrendered to authorities after being informed that charges has been filed against her. Murphy and Thompson pleaded not guilty during their arraignment before U.S. Magistrate Judge H. Bruce Guyton. The arraignment of Wright and Rector has been scheduled for May 24, 2013 at 10:00 am. All four were released pending trial, which will be scheduled at a status conference on June 4, 2013.
Charges against these four individuals are contained in a superseding indictment returned by a federal grand jury on May 21, 2013. Murphy, Thompson and Wright are charged with conspiracy to commit mail and wire fraud and money laundering. Rector is charged with conspiracy to commit wire fraud. The superseding indictment also contains additional charges against Joyce Allen and Kay Thomas, who were initially indicted in July 2012.
The money laundering conspiracy charge carries a maximum sentence of 20 years in prison. The maximum sentence for the fraud conspiracy charge is 30 years in prison.
The indictment alleges that Benchmark Capital, Inc. was engaged in an elaborate scheme that lured investors, many of whom were elderly, into investing their retirement savings and the equity in their homes in phony annuity investments. According to the indictment, more than $42.6 million was invested in the Benchmark scheme, resulting in a net loss of more than $18 million to investors. The scheme unraveled early last year, following the suicide of Charles Candler in March 2012.
This indictment is the result of an investigation by the Internal Revenue Service, U.S. Postal Inspection Service, and Federal Bureau of Investigation. Assistant U. S. Attorney Frank M. Dale, Jr. is representing 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
Last of Four Men Involved in Methamphetamine Conspiracy Sentenced in Federal CourtRead the Press Release
CHATTANOOGA, Tenn. – Shane Howell, 41, of Flintville, Tenn., was sentenced on May 20, 2013, by the Honorable Harry S. Mattice, U.S. District Court Judge, to serve 108 months in federal prison for conspiracy to manufacture and distribute methamphetamine.
Howell was the last of four individuals indicted in July 2012 and charged with conspiracy to manufacture and distribute methamphetamine, along with six other offenses related to the manufacture of methamphetamine. William Shane Reid, 34, of Flintville, Tenn.; William Scott Cunningham, 34, of Fayetteville, Tenn.; and James Thomas Hobbs, 32, of Fayetteville, Tenn., were previously sentenced by Judge Mattice in February 2013. Reid was sentenced to 170 months in federal prison, while Cunningham and Hobbs each received sentences of 70 months in prison.
This investigation, led by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), resulted in several seizures of finished methamphetamine, as well as meth labs in and around Lincoln County, Tenn. These four individuals and other uncharged conspirators are believed to be responsible for more than 200 grams of methamphetamine.
Agencies involved in this investigation included the ATF, Tennessee Bureau of Investigation and Lincoln County Sheriff’s Department. Terra L. Bay, Assistant U.S. Attorney, represented the United States.
Federal Jury Convicts Tyler James Schaeffer on Firearms ChargesRead the Press Release
Convictions linked to a series of robberies and drug trafficking
KNOXVILLE, Tenn. – On May 17, 2013, following a three-day trial in U.S. District Court, Knoxville, Tenn., a jury convicted Tyler James Schaeffer, 22, of Seymour, Tenn., of three counts of brandishing a firearm during and in relation to three robberies of businesses engaged in interstate commerce (Hobbs Act robbery) and possession of a firearm in furtherance of a methylone trafficking conspiracy.
Schaeffer’s sentencing is set for 10:00 a.m., October 9, 2013, in U.S. District Court in Knoxville, Tenn. He faces a sentence of at least 82 years and up to life on the firearms convictions, and up to an additional 160 years in prison on the robbery and drug trafficking convictions. There is no parole in the federal system.
These latest convictions stem from a series of armed robberies in Knox, Sevier, and Blount Counties, between July 26, 2010 and September 14, 2012. Schaeffer previously pleaded guilty to all of the robberies, a total of seven, as well as the methylone trafficking conspiracy. Those pleas were accepted by the Honorable Thomas A. Varlan, Chief U.S. District Judge, on April 30, 2013. Chief Judge Varlan also presided over Schaeffer’s trial.
Schaeffer brandished a knife in at least two of the robberies, and firearms in four of the robberies. Based on the proof available at the time of trial, the United States pursued firearms charges in connection with three of the seven robberies, as well as the methylone trafficking conspiracy. The jury convicted Schaeffer of each of those four firearms-related counts.
Jerel Bray-Sean Johnson, 20, of Knoxville, Tenn., and Rodney James Ruffin, 22, of Sevierville, Tenn., previously pleaded guilty to related robbery, drug trafficking and firearms charges, and did not go to trial with Schaeffer.
According to evidence presented at trial, Schaeffer brandished handguns when he robbed local stores, restaurants, and drug traffickers, including a revolver he obtained on the black market. Evidence detailed how Schaeffer obtained the black market revolver; how he used it in connection with two robberies and a methylone conspiracy; and ultimately, how the revolver was discarded in a south Knoxville storm drain days after an automobile collision involving Schaeffer on September 16, 2012. The Federal Bureau of Investigation (FBI) and the Knoxville Police Department (KPD) recovered the firearm on April 9, 2013, just over a month before trial was to commence. The evidence also included testimony about Schaeffer’s trafficking of methylone on the University of Tennessee (UT) campus following the UT/Florida football game on September 15, 2012, while armed with the revolver. Methylone, a Schedule I controlled substance, is a “party” drug sometimes referred to as “Molly.” Schaeffer took the stand and testified that he used “fake” guns in the robberies and denied ever using the revolver recovered from the storm drain.
Law enforcement agencies participating in the joint investigation which led to indictment and subsequent conviction of Tyler James Schaeffer included the FBI’s Safe Streets Task Force, KPD, Office of District Attorney General James B. Dunn, Tennessee Highway Patrol, Knox County Sheriff’s Office, Sevier County Sheriff’s Office, Sevierville Police Department, Blount County Sheriff’s Office, and Alcoa Police Department. Assistant U.S. Attorneys Kelly A. Norris and Tracy L. Stone represented the United States at trial.
Following sentencing on October 9, 2013, Schaeffer will be returned to Sevier County authorities to stand trial for a deadly automobile collision which occurred on September 16, 2012, as well as a burglary charge.
Carl Lee Glass Sentenced to 106 Months in Federal Prison for Cocaine and Firearms ChargesRead the Press Release
GREENEVILLE, Tenn. – On May 20, 2013, Carl Lee Glass, 33, of Unicoi, Tenn., was sentenced to serve 106 months in prison by the Honorable J. Ronnie Greer, U.S. District Judge. Upon his release from prison, he will be subject to three years of supervised release.
Glass pleaded guilty in August 2012 to a conspiracy to distribute cocaine and possession of a firearm in furtherance of the trafficking of cocaine. He was the subject of an undercover investigation, where he was observed making numerous sales of cocaine. Because Glass possessed a firearm in furtherance of drug trafficking, he faced a minimum 60 month sentence, up to life, in prison for the firearm charge alone.
Law enforcement agencies participating in the joint investigation which led to indictment and subsequent conviction of Glass included the Unicoi County Sheriff’s Department, Tennessee Highway Patrol 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.
Kareem H. Wood Sentenced to Serve over 15 Years in Prison for Distribution of Crack CocaineRead the Press Release
GREENEVILLE, Tenn. – On May 13, 2013, Kareem Hussan Wood, 35, of Johnson City, Tenn., was sentenced to serve 188 months in prison, by the Honorable J. Ronnie Greer, U.S. District Judge. Upon his release from prison, he will be subject to supervised release under the supervision of the U.S. Probation Office for six years.
Wood pleaded guilty in December 2012 to distribution of crack cocaine. He faced a maximum statutory sentence of 30 years for the offense. Wood was the subject of an undercover investigation by the Johnson City Police Department into the distribution of crack cocaine, whereby he was recording selling crack cocaine on numerous occasions.
The Johnson City Police Department was responsible for the investigation leading to the indictment of Wood. Assistant U.S. Attorney J. Gregory Bowman represented the United States.
Cocaine and Firearm Convictions Result in 84 Month Sentence for Esgar Escamella EstrellaRead the Press Release
GREENEVILLE, Tenn. – Esgar Escamella Estrella, 29, of Morristown, Tenn., was sentenced on May 7, 2013, by the Honorable Leon Jordan, U.S. District Court Judge, to serve 84 months in federal prison for his convictions of participation in a cocaine conspiracy and possessing a firearm in furtherance of a drug trafficking offense in Morristown, Tenn.
In January 2012, Estrella supplied cocaine for a scheduled nine ounce transaction in Morristown. It was agreed that two ounces would be sold initially and if the cocaine was good quality, another seven ounce transaction would follow. Estrella brought a 9 mm pistol with him to the transaction. To complete the deal, Estrella, along with co-conspirators Isidoro Garcia, Martin Flores Perez and Jorge Olquin Vazquez, met an individual (who unbeknownst to them at the time was working on behalf of law enforcement) at a Morristown BP station. While Garcia personally dealt with the individual, Estrella went inside the store, leaving the firearm inside their vehicle. Law enforcement agents swiftly moved in and arrested Garcia, Perez and Vazquez. Estrella fled out the back door of the BP station and through the woods.
Later the same day, Estrella approached a residence located approximately one mile from the BP station and offered an occupant of the residence $100.00 to drive him elsewhere. Unbeknownst to Estrella, the person he solicited was an off duty police officer. Upon contacting dispatch and learning of the events, Estrella was identified and placed under arrest by the off-duty officer.
Estrella, Garcia, Perez and Vazquez are all in the United States illegally and face deportation from the United States after serving their respective sentences.
Law enforcement agencies participating in the investigation which led to the indictment and subsequent conviction of Estrella and others include the Drug Enforcement Administration, Morristown Tennessee Police Department, Tennessee Highway Patrol Criminal Investigation Division and Third Judicial District Drug Task Force. Assistant U.S. Attorney Wayne Taylor represented the United States.
United States Attorney William C. Killian stated, “We are pleased with the sentence in this case and believe it reflects the seriousness of the crimes committed. Our prosecutors and the federal, state and local law enforcement agencies working together on this case did a tremendous job.”
This case was part of the Department's Organized Crime Drug Enforcement Task Force (OCDETF) and the High Intensity Drug Trafficking Areas (HIDTA) programs. OCDETF is the primary weapon of the United States against the highest level drug trafficking organizations operating within the United States, importing drugs into the United States, or laundering the proceeds of drug trafficking. The HIDTA program enhances and coordinates drug control efforts among local, State, and Federal law enforcement agencies. The program provides agencies with coordination, equipment, technology, and additional resources to combat drug trafficking and its harmful consequences in critical regions of the United States.
Funding for some of the task forces involved in this investigation also came from the Appalachian High Intensity Drug Area Task Force (HIDTA) which was created in 1998, one of 32 areas in the nation that have been designated as HIDTAs. The HIDTA Program began in 1988 when Congress authorized the Director of The Office of National Drug Control Policy (ONDCP) to designate areas within the United States which exhibit serious drug trafficking problems and harmfully impact other areas of the country as HIDTAs. The HIDTA Program provides additional federal resources to those areas to help eliminate or reduce drug trafficking and its harmful consequences.
Jimmy Rollins Sentenced to 300 Months in Prison for Production of Child PornographyRead the Press Release
CHATTANOOGA, Tenn. – Jimmy Rollins, 45, of Palmer, Tenn., was sentenced to serve 300 months in federal prison, five years supervised release and a $100 special assessment, by the Honorable Harry S. Mattice, Jr., U.S. District Judge. Rollins pleaded guilty in February 2013 to production of child pornography.
In February 2012, an undercover investigation by the Winchester Police Department identified Rollins as a person who used the internet to traffic in pornographic images of children. A search of his home in May 2012 revealed equipment used in the production of child pornography and multiple photographic images and videos of Rollins engaged in sexual activity with a known minor. All the child pornographic scenes were set in a bedroom that can be recognized as belonging to Rollins. Rollins had been previously convicted in 1994 of two counts of statutory rape in the Criminal Circuit Court of Grundy County, Tenn.
The indictment and subsequent conviction of Rollins was the result of an investigation conducted by the Winchester Police Department, Tennessee Bureau of Investigation and Federal Bureau of Investigation. Assistant U.S. Attorney John P. MacCoon represented the United States.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Vernon Luke Bowser Sentenced to 20 Years in Prison for Methamphetamine Conspiracy Operating in Washington CountyRead the Press Release
GREENEVILLE, Tenn. - On Monday, Apr. 29, 2013, Vernon Luke Bowser, 46, of Gray, Tenn., was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 240 months in prison for his role in a methamphetamine manufacturing conspiracy.
Bowser was one of 20 individuals indicted in January 2012 for conspiring to manufacture methamphetamine (meth). Law enforcement agents found meth labs or meth equipment and residue at seven homes in Gray, Jonesborough, and Watauga, Tenn. Currently, 19 of these 20 individuals have been sentenced. Another 11, who were indicted in October 2011 as part of the same meth conspiracy, have also been sentenced. Eighteen additional individuals await sentencing and two others await trial in a third related indictment returned in December 2012.
The conspiracy lasted more than three years and involved the manufacture of more than 1,462 grams of methamphetamine at 16 meth labs including homes, a school bus, barns, and vehicles in Washington, Carter, Greene, and Unicoi counties. The United States forfeited $14,700 in proceeds from the sale of property used to manufacture meth and an additional six acres of property located on Airport Road for the same reason.
In addition to Vernon Luke Bowser, other individuals who have already been sentenced include: Edward Cato, 45; Ricky Birchfield, 42; Lowell Bowser, 46; Dashauna Frye, 38; Scotty Frye, 42; Tim Honeycutt, Sr., 49; Tim (TJ) Honeycutt, Jr., 23; Nancy Lafollette, 52; Renee Martius, 33; David Tucker, 24; and Ronnie Tucker, 44, all 12 of Gray, Tenn. Sentencing has also taken place for the following individuals from Johnson City: James Arnn, 45; Jimmy Hale, 56; Gregg Herron, 42; Brandon Holder, 30; Josh Mabery, 38; Kimberlie Molnar, 44; Andrew Rowland, 41; Danny Wilcox, 37; and Joshua York, 38. The remaining individuals who have been sentenced include: Leroy Bowser, 43, and Linda Woolfrey, 48, of Kingsport; Tavia Harris, 32, of Bristol; Dean Hollifield, 52, and Cindy Waters, 49, of Fall Branch; William Koenig, 35, Teresa Markland, 43, and Bryan Paul, 52, of Jonesborough; and Neil Hensley,38, of Unicoi.
U.S. Attorney William C. Killian stated, “Tennessee has been identified as having one of the highest rates of meth addiction in the United States. Meth has no legitimate uses and it destroys lives, families, and communities. We will continue to devote appropriate resources to rid our communities of the scourge of meth by vigorous prosecution and meaningful prison terms.”
Law enforcement agencies participating in the investigation which led to the indictments and subsequent convictions include the Tennessee First Judicial District Drug Task Force (1stDTF), Tennessee Second Judicial District Drug Task Force, Washington County Tennessee Sheriff’s Office, Drug Enforcement Administration, U.S. Marshals Service, Sullivan County Tennessee Sheriff’s Office Vice Unit, Kingsport Tennessee Police Department, Johnson City Tennessee Police Department, Tennessee National Guard, Tennessee Highway Patrol, Elizabethton Tennessee Police Department, Tennessee Bureau of Investigation, Greene County Tennessee Sheriff’s Office, Greeneville Police Department, Federal Bureau of Investigation, and Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Helen Smith represented the United States.
Leslie Ashmore Sentenced to 240 Months in Prison for Being A Felon in Possession of A FirearmRead the Press Release
GREENEVILLE, Tenn. – On Apr. 30, 2013, Leslie H. Ashmore, 46, of Kingsport, Tenn., was sentenced to serve 240 months in prison, by the Honorable Leon Jordan, U.S. District Judge. Upon his release from prison, he will be subject to supervised release for five years. There is no parole in the federal system.
Following a jury trial in December 2012, Ashmore was convicted of possession of a firearm after having been previously convicted of a felony offense. He was arrested by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) on federal charges in October 2011, with the assistance of the Kingsport Police Department SWAT team, Sullivan County Sheriff's Department, and Second Judicial District Drug Task Force. A firearm was found in the vehicle in which Ashmore was traveling at the time of his arrest. Federal law prohibits anyone who has previously been convicted of a felony offense from possessing a firearm or ammunition. Ashmore was also subject to the provisions of the Armed Career Criminal Act, whereby a person convicted of possessing a firearm after a felony conviction is subject to a minimum mandatory 15 years, up to life in prison if that person has three or more prior violent felony or drug felony convictions.
The investigation was conducted by the Kingsport Police Department, Second Judicial District Drug Task Force, and ATF. Assistant U.S. Attorneys J. Gregory Bowman and Suzanne Kerney-Quillen 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.
James Light Sentenced to 150 Months in Prison for Conspiracies to Distribute Cocaine and OxycodoneRead the Press Release
GREENEVILLE, Tenn. - James Light, 65, of Rogersville, Tenn., was sentenced to serve 150 months in prison, followed by four years of supervised release, by the Honorable Leon Jordan, U.S. District Judge. Light pleaded guilty in December 2012 to conspiracy to distribute and to possess with the intent to distribute 500 grams or more of cocaine and a conspiracy to distribute and possess with intent to distribute oxycodone.
As a result of this investigation, several other individuals have been convicted and sentenced for their involvement in the drug conspiracies.
On Apr. 25, 2013, Michael L. Dykes, 51, of Rogersville, Tenn., was sentenced to serve 37 months in prison followed by one year of supervised release. Dykes was allowed to remain on bond until reporting to the Bureau of Prisons. He pleaded guilty in January 2013 to conspiracy to distribute and possess with intent to distribute marijuana and conspiracy to distribute and possess with intent to distribute oxycodone pills.
On Apr. 16, 2013, Lorne L. Loucel, 32, of Rogersville, Tenn., was sentenced to serve 108 months in prison followed by three years of supervised release. Loucel pleaded guilty in December 2012 to conspiracy to distribute and possess with intent to distribute oxycodone pills.
On Apr. 16, 2013, Daniel L. Dykes, 29, of Rogersville, Tenn., was sentenced to serve 37 months in prison followed by three years of supervised release. Dykes pleaded guilty in December 2012 to conspiracy to distribute and possess with intent to distribute marijuana and conspiracy to distribute and possess with intent to distribute oxycodone pills.
On Apr. 2, 2013, Christy D. Dykes, 32, of Rogersville, Tenn., was sentenced to serve 40 months in prison, followed by three years of supervised release. Dykes pleaded guilty in November 2012, to conspiracy to distribute and possess with intent to distribute oxycodone pills.
On Mar. 21, 2013, Christy R. Seay, 39, of Greeneville, Tenn., was sentenced to serve 57 months in prison followed by three years of supervised release. Seay pleaded guilty in September 2012, to conspiracy to distribute and possess with intent to distribute oxycodone pills.
On Mar. 11, 2013, Ella Maria Camacho Garcia, 30, of Burlington, N.C., was sentenced to serve 78 months in prison followed by two years of supervised release. Garcia pleaded guilty in August 2012 to conspiracy to distribute and possess with intent to distribute marijuana and a conspiracy to distribute and to possess with the intent to distribute cocaine. She also pleaded guilty to money laundering and received a money judgment in the amount of $815,000.00.
On Mar. 7, 2013, Jonathan L. Light, 24, of Kingsport, Tenn., was sentenced to serve 84 months in prison followed by three years of supervised release. Light pleaded guilty in August 2012 to conspiracy to distribute and possess with intent to distribute oxycodone pills.
On Mar. 7, 2013, Levi D. Love, 24, of Kingsport, Tenn., was sentenced to serve 37 months in prison followed by three years of supervised release. Love was allowed to remain on bond until reporting to the Bureau of Prisons. He pleaded guilty in August 2012 to conspiracy to distribute and possess with intent to distribute oxycodone pills.
On Mar. 4, 2013, Charles Thomas Laing, 30, of Rogersville, Tenn., was sentenced to serve 157 months in prison followed by four years of supervised release. Laing pleaded guilty in September 2011, to conspiracy to distribute and possess with intent to distribute oxycodone pills, possession of a firearm in furtherance of a drug trafficking offense, and money laundering.
On Feb. 28, 2013, Jessica R. Bernard, 23, of Greeneville, Tenn., was sentenced to serve 37 months in prison followed by three years of supervised release. Bernard pleaded guilty in September 2012 to conspiracy to distribute and possess with intent to distribute oxycodone pills.
On Feb. 28, 2013, Amanda D. Bernard, 23, of Afton, Tenn., was sentenced to serve 37 months in prison followed by three years of supervised release. Bernard pleaded guilty in August 2012 to conspiracy to distribute and possess with intent to distribute oxycodone pills.
On Feb. 26, 2013, Shandeeda M. Compton, 31, of Rogersville, Tenn., was sentenced to serve 63 months in prison followed by three years of supervised release. Compton pleaded guilty in October 2012, to conspiracy to distribute and possess with intent to distribute oxycodone pills.
The indictment and subsequent conviction of Light and other co-conspirators was the result of a three year investigation conducted by the Hawkins County Tennessee Sheriff’s Department, Sullivan County Tennessee Sheriff’s Department, Greene County Tennessee Sheriff’s Department, Second Judicial Drug Task Force, Kingsport, Tennessee, Police Department, Third Judicial Drug Task Force, Tennessee Bureau of Investigation, and DEA. Assistant U.S. Attorney Caryn L. Hebets represented the United States.
Roger Tristan Johnson Sentenced to 235 Months in Prison for Participating in Conspiracy to Distribute OxycodoneRead the Press Release
GREENEVILLE, Tenn.- On Apr. 23, 2013, Roger Tristan Johnson, 34, of Johnson City, Tenn., was sentenced to serve 235 months in prison by the Honorable J. Ronnie Greer, U.S. District Judge.
Johnson pleaded guilty to an August 2010 federal indictment charging him with conspiracy to distribute and possess with the intent to distribute a quantity of oxycodone pills. Also charged in the conspiracy were Diane Elizabeth Campbell, 27 of Elizabethton, Tenn.; Tommy Thomas Nicholas, 45 of Gray, Tenn.; Joshua Paul Arnett, 26 of Gray, Tenn.; and Austin Tanner Wood, 20 of Sullivan County, Tenn. Arnett was charged with distribution of a quantity of oxycodone pills. Campbell and Nicholas were charged with interstate travel with intent to promote, manage, establish, carry on and facilitate the promotion, management, establishment, or carrying on, of a business enterprise involving narcotics or controlled substances. All have been convicted and are awaiting sentencing.
Johnson admitted that from January 2010 to August 2012, he knowingly, intentionally, and without authority, conspired with at least one other person to distribute and possess with the intent to distribute oxycodone pills, a Schedule II controlled substance in the Eastern District of Tennessee and elsewhere. An organization headed by Johnson employed a number of couriers to transport oxycodone pills from a source in Miami, Fla., to the Eastern District of Tennessee. At the height of this operation, Johnson’s couriers were making multiple trips a week to Florida, purchasing several thousand pills on each trip. The pills were then delivered to Johnson who further distributed the pills to street level dealers. At the time of his arrest Johnson, who had previously been convicted of a felony, was in possession of a loaded .45 caliber handgun.
U.S. Attorney Bill Killian stated, “I want to commend all of those agencies and law enforcement officials who worked together to bring these individuals to justice. It took a joint effort by all agencies involved to achieve this result. "
The indictment and subsequent conviction of Johnson was the result of an investigation conducted by the Sullivan County Sheriff’s Department, Washington County Sheriff’s Department, Hampton County, South Carolina Sheriff’s Office, First Judicial District Drug Task Force, Tennessee Bureau of Investigation, Drug Enforcement Administration, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Christian Lampe 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.
Tamral Guzman and Brian Hatcher SentencedRead the Press Release
Guzman Formerly Operated Maryville Pain Clinic
KNOXVILLE, Tenn.- On Apr. 18, 2103, Tamral S. Guzman, 42, of Blount County, Tenn., was sentenced to serve 258 months in federal prison by the Honorable Thomas A. Varlan, U.S. District Judge for the Eastern District of Tennessee. This sentence was the result of her August 2012 trial conviction of multiple drug, money laundering and structuring offenses, contained in a 57-count indictment, as well as her guilty plea in January 2013 to a charge of failure to appear.
Guzman was also ordered to forfeit all proceeds of her crimes, including three houses, a fishing boat, and more than $197,000 that had been seized by federal authorities following her arrest. The court also entered a money judgment of more than $2.5 million against Guzman, representing additional funds subject to forfeiture as a result of her crimes.
Guzman's criminal conviction came as a result of her operating Maryville Pain Management from August 2008 until it was closed by federal authorities in December 2010. During the sentencing hearing, the court heard testimony that customers seeking prescriptions for drugs visited the pain clinic on more than 11,000 occasions while it was open.
Brian Hatcher, 33, also of Blount County, was also sentenced on Apr. 18, 2013, to serve 130 months in prison for assisting Guzman in her failure to appear and for intimidation of a witness. In October 2012, prior to the conclusion of Guzman's trial, Hatcher and Guzman fled to Hollywood, Fla., where they lived for approximately one month before being apprehended by the U.S. Marshals Service agents on October 31, 2012.
The conviction of Guzman and Hatcher came as a result of a joint investigation by the Internal Revenue Service - Criminal Investigation, Drug Enforcement Administration, and Blount County 5th Judicial Drug Task Force. Assistant U.S. Attorneys Jennifer Kolman and Frank M. Dale, Jr. represented the United States.
Anthony Lamont Singleton Sentenced to Serve 110 Months in Prison for Being A Felon in Possession of A FirearmRead the Press Release
GREENEVILLE, Tenn. – Anthony Lamont Singleton, 37, of Kingsport, Tenn., was sentenced to serve 110 months in prison, by the Honorable J. Ronnie Greer, U.S. District Judge. Upon release from prison, he will be subject to supervised release by the U.S. Probation Office for three years.
Singleton pleaded guilty in October 2012 to possession of a firearm after having previously been convicted of a felony. He was arrested after a verbal altercation with Kingsport residents escalated when Singleton displayed a firearm. He faced a maximum statutory sentence of 120 months for the offense.
Law enforcement agencies participating in the joint investigation which led to indictment and subsequent conviction of Singleton included the Kingsport Police 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.
Fourteen Arrested on Federal Methamphetamine Charges in Tennessee and North GeorgiaRead the Press Release
CHATTANOOGA, Tenn.--A total of 14 individuals from Eastern Tennessee, Northern Georgia and Western North Carolina have been arrested for various violations of federal drug and firearms laws. All are alleged to be part of a large methamphetamine trafficking organization operating in Tennessee and Georgia. A list of charges and potential penalties for these individuals is attached to this release.
On Apr. 16, 2013, seven of these individuals had initial appearances before U.S. Magistrate Judge Susan K. Lee on charges in a second superseding indictment. Anthony Long, 41, of Chatsworth, Ga.; Sarah McElhannon, 44, of Copperhill, Tenn.; Paula Price, 41, Jeremy Gamble, 42, Randy Greene, 48, Paul Gribble, 48, all of Turtletown, Tenn.; and Tracy Mason, 48, of McCaysville, Ga., all appeared for the first time. Three others including: Jose Manuel Juarez-Gonzalez, 37, of Ellenwood, Ga.; Hector De La Torre, 50, of Atlanta, Ga.; and Robin Welch, 42, of Copperhill, Tenn., who had previously been arraigned on a superseding indictment, also appeared before U.S. Magistrate Judge Lee to be arraigned on charges in the second superseding indictment.
Four individuals are also in custody including: Corey Welch, 39, of Copperhill, Tenn.; Dennis Glover, 60, of Ranger, Ga.; Melinda Adams, 24, of McCaysville, Ga., and Mitchell Hughes, 38, of Farner, Tenn. They will be arraigned in the near future.
Trial has been set for June 25, 2013, in U.S. District Court in Chattanooga.
Other arrests are pending and their names, charges and potential penalties will be released upon their initial appearance before a U.S. Magistrate Judge.
The investigation leading to the indictment and subsequent arrests was conducted by agents of the U.S. Department of Homeland Security, Bureau of Alcohol, Tobacco, Firearms and Explosives, and 10th Judicial District Drug Task Force. Assistant U.S. Attorney Terra Bay will represent the United States at trial.
Members of the public are reminded that these are only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
(Download Charges and Penalties Sheet)
Former Shaw Group Safety Manager at TVA Nuclear Sites Sentenced to 78 Months in Prison for Major Fraud Case Against the United StatesRead the Press Release
Injuries hidden to obtain over $2.5 million in safety bonuses
CHATTANOOGA, Tenn. – On Apr. 11, 2013, Walter Cardin, 55, of Metairie, La., was sentenced to serve 78 months in prison followed by two years of supervised release, by the Honorable Curtis L. Collier, U.S. District Judge. Cardin was convicted at trial in November 2012, after being charged by a federal grand jury with eight counts of major fraud against the Tennessee Valley Authority (TVA), an agency of the United States.
The indictment and subsequent conviction of Cardin was the result of a six-year investigation conducted by the TVA-Office of Inspector General (TVA-OIG). The trial revealed that Cardin, as safety manager for the Shaw Group (formerly Stone & Webster Construction) at TVA’s Brown’s Ferry Nuclear site in Athens, Ala., provided false and misleading information about injuries at that facility as well as TVA’s Sequoyah Nuclear site in Soddy Daisy, Tenn., and TVA’s Watts Bar Nuclear site near Spring City, Tenn. The Shaw Group had a contract with TVA to provide maintenance and modifications to the three facilities and to provide construction for the Brown’s Ferry Unit Number 1 reactor restart. Cardin generated false injury rates which were used by the Shaw Group to collect safety bonuses of over $2.5 million from TVA. As part of a civil agreement filed with the United States in 2008, the Shaw Group paid back twice the amount of the ill-gotten safety bonuses.
Cardin was convicted of providing the false information about injuries by underreporting their number and severity. The false information was generated at the three plants in 2004 and 2005, and at the Brown’s Ferry and Sequoyah plants in 2006. The evidence presented at trial encompassed over 80 injuries, including broken bones, torn ligaments, hernias, lacerations, and shoulder, back, and knee injuries that were not properly recorded by Cardin. Some employees testified that they were denied or delayed proper medical treatment as a result of Cardin’s fraud. Evidence showed that Cardin intentionally misrepresented or simply lied about how the injuries had occurred and how serious the injuries were.
Judge Collier imposed a more severe sentence for Cardin after he found that he had obstructed justice when he testified falsely during the trial. At trial Cardin denied intentionally misclassifying injuries, disputing the evidence to the contrary in the medical records and from injured employees. Cardin also denied knowing that safety bonuses were tied to his classifications of the injuries. Investigators found emails sent by Cardin with this information and additional information tying the safety bonuses to the injury rates in Cardin’s desk drawers. Judge Collier cited the twin aims of deterrence and retribution to justify Cardin’s sentence.
U.S. Attorney William C. Killian commended the efforts by the TVA-OIG investigators in the case who obtained and reviewed over 500,000 documents and interviewed hundreds of witnesses as part of the investigation. In addition to the monetary losses to TVA, U.S. Attorney Killian spoke of the other the consequences of the fraud stating, “The defendant’s practices affected the safety of the work environment of nuclear sites. They resulted in employees becoming more reluctant to report injuries, employers failing to address safety issues on the work sites, and employees working through medical conditions that created risks of additional injuries to themselves and others. We will continue to vigilantly guard against unsafe work environments, as well as waste, fraud, and abuse of government funds.”
This case was investigated by TVA-OIG. Assistant U.S. Attorneys Perry H. Piper and Gregg L. Sullivan represented the United States at trial.
Jeffrey Bryant Nichols Pleads Guilty to Embezzlement SchemeRead the Press Release
KNOXVILLE, Tenn.- On Apr. 4, 2013, Jeffrey Bryant Nichols, 54, of Loudon, Tenn., pleaded guilty to mail fraud and money laundering violations. Sentencing has been set for 9:30 a.m., Jun. 18, 2013 in U.S. District Court in Knoxville. He faces a maximum term of 20 years in prison for the mail fraud and 10 years in prison for the money laundering.
Nichols was employed with Architectural Graphics Incorporated (AGI) a Virginia Beach, Va., based company that designs and manufactures architectural interior and exterior sign systems in the United States. While working as a project manager, Nichols conspired with another employee to create a fictitious company known as Outdoor Graphic Displays. The company was created for the sole purpose of defrauding AGI, by creating fictitious subcontracting invoices and submitting them to AGI for payment. Between August 2005 and June 2007, 11 fictitious and fraudulent invoices, totaling $359,575.00, were submitted to AGI from Outdoor Graphic Displays.
On Feb. 22, 2012, a three-count indictment, including the above referenced charges, was returned against Nichols by a federal grand jury sitting in Knoxville Tennessee. This indictment was the result of an ongoing investigation by IRS-Criminal Investigation. Jennifer Kolman Assistant U.S. Attorney represented the United States.
Brandon Laferty Sentenced to 30 Months in Prison for Failure to Register as A Sex OffenderRead the Press Release
GREENEVILLE, Tenn. – On Apr. 1, 2013, Brandon Lee Laferty, 27, of Sullivan County, Tenn., was sentenced by the Honorable J. Ronnie Greer, U.S. District Judge, to serve 30 months in prison for failure to register as a sex offender. Upon his release from prison, Laferty will serve 15 years on supervised release.
In 2011, Laferty was sentenced by the Sullivan County Criminal Court to serve 10 years of probation, and ordered to wear an electronic monitoring device, for solicitation to commit aggravated sexual battery on a 12-year-old child. This required him to register as a sex offender. After transferring his probation to Hawkins County, Tenn., Laferty removed the device and fled from his probation officer. When Hawkins County sheriff’s deputies located him in Hawkins County in November 2011, he attempted to attack them, resulting in gunshot wounds to Laferty’s chest. After the monitoring device was reinstalled on Laferty, he removed it a second time and fled to Roxanna, Ill., where U.S. Marshals arrested him in April 2012.
During sentencing, Judge Greer noted that communities are entitled to notice that a convicted sex offender has entered the community. He further remarked that Laferty’s attempt to attack the Hawkins County officers and his removal of the electronic monitoring devices demonstrated a profound lack of respect for the law and law enforcement officers. Incarceration was needed because the 10 year state court probationary sentence was not effective. The obvious need to protect the public from Laferty justified a sentence at the top of the sentencing range.
The indictment and subsequent conviction of Laferty were the result of an investigation conducted by the Sullivan County, Tennessee Sheriff’s Office, Hawkins County, Tennessee Sheriff’s Office, and U.S. Marshals Service. Assistant U.S. Attorney Helen Smith represented the United States.
Former Gatlinburg Resident Convicted of Tax OffensesRead the Press Release
KNOXVILLE, Tenn.- David Miner, formerly of Gatlinburg, Tenn., was convicted today by a federal jury in Knoxville, with one count of impeding or obstructing the administration of the Internal Revenue Laws and two counts of failing to file federal income tax returns. The Honorable Thomas Phillips, U.S. District Judge, ordered Miner to be held in custody pending sentencing, which has been scheduled for May 29, 2013. Miner faces a maximum penalty of five years in prison and a fine of $450,000.
In the course of a six-day trial, the United States presented evidence of Miner’s efforts to obstruct the lawful functions of the Internal Revenue Service (IRS) and his failure to file tax returns for the 2004 and 2005 tax years. The jury heard extensive testimony regarding Miner’s sale of services that were designed to assist customers in evading income taxes. In particular, the United States offered evidence of a service for the purported decoding and correction of clients’ IRS files, which Miner stated would prevent the IRS from being able to assess taxes. In addition, Miner set up “common law trusts,” which were intended to place clients’ income and possessions out of the reach of the IRS. In connection with both services, Miner would prepare frivolous and threatening letters to IRS employees and others in an effort to hamper the collection of taxes.
U.S. Attorney William C. Killian stated, “When tax protesters promote and use fraudulent tax schemes as weapons against the United States of America, they will be brought to justice. The diligent efforts of IRS Criminal Investigation Division agents and AUSA Frank Dale assured the equal application of the laws of the United States to all.”
"The law is clear on the issue of taxable income and who is required to file and pay taxes: there is no gray area on the subject," said Christopher A. Henry, Special Agent in Charge, IRS Criminal Investigation Nashville Field Office. "We should not forget that the ultimate victims in tax fraud cases are the people of the United States - those honest taxpayers who diligently file tax returns each year. This conviction sends a message that the IRS is working to make sure that all taxpayers file and pay their fair share of taxes."
This investigation was conducted by IRS Criminal Investigation. Assistant U.S. Attorney Frank M. Dale, Jr. represented the United States.
Forty-Two Indicted on Charges Relating to Manufacture and Distribution of Methamphetamine in Anderson CountyRead the Press Release
KNOXVILLE, Tenn. – On Mar. 19, 2013, 42 individuals, many of whom reside in Anderson County, were indicted by a federal grand jury for various charges relating to the manufacture and distribution of methamphetamine.
In addition to manufacturing and distributing methamphetamine, the charges also include: conspiracy to manufacture and distribute methamphetamine; possessing equipment, chemicals, products and materials which may be used to manufacture methamphetamine, knowing that the equipment, chemicals, products and materials would be used to manufacture methamphetamine; maintaining residences, one of which was less than 1000 feet away from an elementary school, for the purpose of manufacturing methamphetamine; and federal firearms offenses, including two for using firearms in furtherance of a drug trafficking crime and one for being a felon in possession of a firearm.
If convicted, the conspiracy charge, for which all are charged in the indictment, is punishable by no less than 10 years and up to life in prison, a fine of up to $10 million, and a term of supervised release of no less than five years.
Those indicted include: 1. Lawrence Wilbur Scriver, a.k.a. Stoney, 45, of Lake City; 2. Stephen Michael Conner, 46, of Knoxville; 3. Christopher Ray Farmer, 51, Clinton; 4. Thomas Gene Wright, a.k.a. Tommy Wright, 40, of Lake City; 5. Shaun Jeffery Williams, a.k.a. Cowboy, 26, of Heiskell; 6. Crystal Gail Barnes, a.k.a. Crystal Plemons, 36, of Powell; 7. Layla Leigh Bean, 32, of Powell; 8. Jeffrey Scott Braden, 36, of Lake City; 9. Lisa Charlene Bullock, a.k.a. Lisa Taylor Bullock, 36, of Powell; 10. Kevin Jason Ingram, 41, of Clinton; 11. Derrick Ray Farmer, 33, of Clinton; 12. Ron Walter Austin, 36, of Andersonville; 13. Brandy Danielle Braden, 30, of Lake City; 14. Cassaundria Nichole Sweat, a.k.a. Cassaundra Sweat, 27, of Clinton; 15. Ronnie Gene Murphy, 41, of Knoxville; 16. James Edward Bean, II, 32, of Oliver Springs; 17. Marty Lynn Ivy, 37, of Heiskell; 18. Shinna Marie Rutherford, 33, of Caryville; 19. Kimberly Frances Baker, 24, of Maryville; 20. Aaron James Burress, 32, of Clinton; 21. Junior Lee Phillips, 58, of Clinton; 22. Shannon Marie Ruffner, 28, of Lake City; 23. Aaron Wayne Snelson, 30, of Clinton; 24. Sheena Jean Snow, 26, of Powell; 25. Timothy Scott Stewart, a.k.a. Bodine, 41, of Powell; 26. Kasey Dawn Miller, 33, of Lake City; 27. Breanne Angela Leighton, a.k.a. Bree, 22, of Lake City; 28. Gregory Jason McCollum, 37, of Harriman; 29. Allison Nicole Miller, 27, of Clinton; 30. Donny Lee McGhee, 41, of Lake City; 31. Jonathan Richard McQueen, 23, of Gallatin; 32. James Perry Phillips, 33, of Lake City; 33. Joseph Hunter Jacobs, 23, of Clinton; 34. Michael Lee Jackson, 33, Oliver Springs, Tenn.; 35. James Delaney Bazzoon, 33, of Knoxville; 36. Justin Michael Ford, 26, of Lake City; 37. Junelle Elaine Jerrell, a.k.a. Debbie McGee, Debbie Levon McGhee, 60, of Lake City; 38. Stacey Yvette Jett, 44, of Knoxville; 39. Jessica Ruth Davis, 28, of Knoxville; 40. Brandy Nicole Grahl, 29, of Heiskell; 41. Walter James Lee Griffith, 30, of Powell; and 42. Lindsey Shawntae Bailey, 25, of Washburn.
The investigation leading to this indictment was a joint effort between the Drug Enforcement Administration, Tennessee Bureau Investigation, Tennessee Methamphetamine and Pharmaceutical Drug Task Force, Anderson County Sheriff’s Office, Knox County Sheriff’s Office, Knoxville Police Department, Oak Ridge Police Department, the Seventh Judicial Crime Task Force, and the Clinton Police Department.
This indictment is part of “Operation Meth-odical Destruction,” which is an operation designed to address methamphetamine related crime in Anderson and Knox counties, spearheaded by the dedicated local and state law enforcement agencies in these counties.
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.
(Download Indictment)
Knoxville Couple Convicted of Tax FraudRead the Press Release
KNOXVILLE, Tenn. – On Mar. 20, 2013, a federal jury in U.S. District Court for the Eastern District of Tennessee, at Knoxville, found James E. Beavers and Beverly S. Beavers, each guilty of conspiracy to defraud the United States and three counts of filing false claims for tax refunds. After the jury’s verdicts were announced, the defendants were remanded into federal custody by the Honorable Thomas Varlan, U.S. District Judge. Sentencing has been set for 10:00 a.m., August 7, 2013.
The evidence at trial showed that James Beavers held a Ph.D. in civil engineering and was employed as an engineering consultant. He was formerly the director of an academic engineering center at the University of Tennessee. His wife Beverly Beavers owned a small formalwear and jewelry store in Knoxville.
In June 2009 the Beavers arranged to have a fraudulent 2008 tax return prepared by PMDD Services LLC, tax return preparation firm that helped clients claim exorbitant tax refunds specifically intended to help the clients pay off their personal debts. The tax return falsely reported that the amount of their mortgage, limits on all their credit cards, and other personal debts were actually income and withheld federal income tax. This fictitious income and fictitious tax withholding was reported to the Internal Revenue Service (IRS) on false Forms 1099-OID, which were prepared by Penny Jones of PMDD Services based on information provided by the Beavers. Jones was convicted in the Southern District of Florida for her involvement in the same scheme. She is currently serving a sentence of 144 months in federal prison.
As a result of the fraudulently-inflated income and withholding, the 2008 tax returns for the Beavers claimed a fraudulent tax refund of over $591,000. Upon receiving the funds, the Beavers paid off their home mortgage. They then conveyed their newly-unencumbered real estate to sham trusts, in order to impede IRS efforts to collect the erroneously-paid refund. The Beavers later filed false amended tax returns for the 2006 and 2007 tax years, also prepared by Jones, requesting fraudulent tax refunds of $193,056 and $202,625 respectively.
“We will aggressively investigate and prosecute those who intentionally violate federal tax laws. Disagreement with the income tax laws and failure to recognize the authority of the government to tax will not excuse criminal conduct,” said U. S. Attorney Bill Killian.
The Beavers case was investigated by special agents of the IRS-Criminal Investigation. The case was prosecuted by Trial Attorneys Jonathan Marx and Jed Silversmith of the Department of Justice, Tax Division, with local assistance from Assistant U.S. Attorney Charles E. Atchley, Jr., with the U.S. Attorney’s Office for the Eastern District of Tennessee.
Grace Healthcare and Grace Ancillary Services Agree to Pay United States and State of Tennessee $2.7 Million to Resolve False Claims AllegationsRead the Press Release
Government Alleges Companies Billed for Medically Unnecessary Therapy
CHATTANOOGA, Tenn. -- Chattanooga based nursing home chain Grace Healthcare LLC and its affiliate, Grace Ancillary Services LLC (collectively, Grace), have agreed to pay $2.7 million, plus interest, to resolve allegations that they violated the False Claims Act by knowingly submitting or causing the submission to the Medicare and TennCare/Medicaid programs of false claims for medically unreasonable and unnecessary rehabilitation therapy. Grace Ancillary Services LLC provided the therapy in some of the skilled nursing facilities Grace Healthcare LLC owns and/or manages in Tennessee and elsewhere.
According to the settlement agreement, federal and state investigators alleged that from 2007 through June 2011, Grace pressured physical, occupational and speech therapy staff in at least 10 nursing home facilities owned or managed by Grace to increase the amount of therapy provided to patients in order to meet targets for Medicare revenue that were set without regard to patients’ individual therapy needs and could only be achieved by billing for a large amount of therapy per patient. As part of the settlement, Grace has agreed to enter into a Corporate Integrity Agreement with the Inspector General of the Department of Health and Human Services that provides for procedures and reviews to be put in place to monitor and ensure Grace’s compliance with federal health care benefit program requirements.
“The continued viability of our federal healthcare benefit programs depends, in large part, on the honesty and integrity of the program participants,” said U.S. Attorney Bill Killian. “Health care providers must make decisions regarding the level of services to be provided based solely on individual patient need rather than a desire to increase the bottom line. As this settlement demonstrates, when aggressive business practices cross the line into waste and abuse, we are committed to working with our federal and state partners to protect public funds.”
"Medicare does not pay for medically unnecessary rehabilitation services," said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services Office of Inspector General in Atlanta. “The Inspector General is committed to identifying improper billing to Medicare and Medicaid and returning those dollars to the taxpayers.”
Mr. Killian noted that this settlement resulted from a joint, comprehensive investigation conducted by the Department of Justice and Tennessee Attorney General’s Office in cooperation with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) and the Tennessee Bureau of Investigation (TBI), and commended the efforts of all who played a role in the complex investigation, including TBI-Medicaid Fraud Control Unit Special Agent T.J. Battle, HHS-OIG Special Agent Tony Maffei, DOJ Trial Attorney Christelle Klovers, AUSAs Rob McConkey and Betsy Tonkin, HHS-OIG Senior Counsel Tonya Keusseyan, and Assistant Tennessee Attorney General Mary McCullohs. The investigation was prompted by a qui tam or whistleblower complaint filed in 2010. After investigators contacted Grace in early 2011 to request information and discuss the allegations, Grace cooperated with the investigation by providing documents as well as other information and making its personnel available for interviews.
This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Secretary of the Department of Health and Human Services Kathleen Sebelius in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover $10.2 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $14 billion, with recoveries by the U.S. Attorney’s Office for the Eastern District of Tennessee alone totaling more than $75 million during the same period.
Grace Healthcare and Grace Ancillary Services Agree to Pay United States and State of Tennessee $2.7 Million to Resolve False Claims AllegationsRead the Press Release
Government Alleges Companies Billed for Medically Unnecessary Therapy
CHATTANOOGA, Tenn. -- Chattanooga based nursing home chain Grace Healthcare LLC and its affiliate, Grace Ancillary Services LLC (collectively, Grace), have agreed to pay $2.7 million, plus interest, to resolve allegations that they violated the False Claims Act by knowingly submitting or causing the submission to the Medicare and TennCare/Medicaid programs of false claims for medically unreasonable and unnecessary rehabilitation therapy. Grace Ancillary Services LLC provided the therapy in some of the skilled nursing facilities Grace Healthcare LLC owns and/or manages in Tennessee and elsewhere.
According to the settlement agreement, federal and state investigators alleged that from 2007 through June 2011, Grace pressured physical, occupational and speech therapy staff in at least 10 nursing home facilities owned or managed by Grace to increase the amount of therapy provided to patients in order to meet targets for Medicare revenue that were set without regard to patients’ individual therapy needs and could only be achieved by billing for a large amount of therapy per patient. As part of the settlement, Grace has agreed to enter into a Corporate Integrity Agreement with the Inspector General of the Department of Health and Human Services that provides for procedures and reviews to be put in place to monitor and ensure Grace’s compliance with federal health care benefit program requirements.
“The continued viability of our federal healthcare benefit programs depends, in large part, on the honesty and integrity of the program participants,” said U.S. Attorney Bill Killian. “Health care providers must make decisions regarding the level of services to be provided based solely on individual patient need rather than a desire to increase the bottom line. As this settlement demonstrates, when aggressive business practices cross the line into waste and abuse, we are committed to working with our federal and state partners to protect public funds.”
"Medicare does not pay for medically unnecessary rehabilitation services," said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services Office of Inspector General in Atlanta. “The Inspector General is committed to identifying improper billing to Medicare and Medicaid and returning those dollars to the taxpayers.”
Mr. Killian noted that this settlement resulted from a joint, comprehensive investigation conducted by the Department of Justice and Tennessee Attorney General’s Office in cooperation with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) and the Tennessee Bureau of Investigation (TBI), and commended the efforts of all who played a role in the complex investigation, including TBI-Medicaid Fraud Control Unit Special Agent T.J. Battle, HHS-OIG Special Agent Tony Maffei, DOJ Trial Attorney Christelle Klovers, AUSAs Rob McConkey and Betsy Tonkin, HHS-OIG Senior Counsel Tonya Keusseyan, and Assistant Tennessee Attorney General Mary McCullohs. The investigation was prompted by a qui tam or whistleblower complaint filed in 2010. After investigators contacted Grace in early 2011 to request information and discuss the allegations, Grace cooperated with the investigation by providing documents as well as other information and making its personnel available for interviews.
This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Secretary of the Department of Health and Human Services Kathleen Sebelius in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover $10.2 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $14 billion, with recoveries by the U.S. Attorney’s Office for the Eastern District of Tennessee alone totaling more than $75 million during the same period.
Tyler Schaeffer and Two Codefendants Charged in Armed Robbery SpreeRead the Press Release
All Face Lengthy Prison Terms For Using Firearms In The Commission Of Violent Crimes
KNOXVILLE, Tenn. - A federal grand jury in Knoxville returned a 14-count indictment on Mar. 5, 2012, against Tyler Schaeffer, 21, of Seymour, Tenn., for one count of conspiracy to commit Hobbs Act robbery, seven counts of Hobbs Act robbery, four counts of brandishing a firearm during a robbery, one count of conspiracy to distribute and possess with intent to distribute methylone, and one count of possessing a firearm in furtherance of a drug trafficking crime. In that same indictment, Jerel Bray-Shawn Johnson, 20, of Knoxville, Tenn., was charged in the conspiracies to commit Hobbs Act robbery and to distribute and possess with intent to distribute methylone, as well as two counts of Hobbs Act robbery, and two counts of brandishing a firearm during a robbery. Lastly, Rodney James Ruffin, 21, of Sevierville, Tenn., was charged in the same indictment with conspiracy to commit Hobbs Act robbery, one count of Hobbs Act robbery, and one count of brandishing a firearm during a robbery.
On Mar. 6, 2013, Jerel Bray-Shawn Johnson appeared before U.S Magistrate Judge C. Clifford Shirley, Jr., and entered pleas of not guilty to all charges. Johnson was detained pending trial, which is set for May 14, 2013.
If these individuals are convicted, they face significant mandatory minimum terms of in prison for the firearm offenses. Schaeffer faces not less than 107 years in prison, Johnson not less than 32 years, and Ruffin not less than seven years. They each face additional prison time for the robberies and drug trafficking crimes, which must be served consecutively to the prison time imposed for the firearm offenses. There is no parole in the federal system.
This indictment is the result of an investigation by the FBI Safe Streets Task Force, which includes members of the Knoxville Police Department and Knox County Sheriff’s Office, Office of James B. Dunn, District Attorney General for the Fourth Judicial District, Tennessee Highway Patrol, Sevier County Sheriff’s Office, and Alcoa Police Department. Assistant U.S. Attorneys Tracy L. Stone and 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.
Consumer Awareness and Protection Expo/Shred EventRead the Press Release
Free Event for the Public
KNOXVILLE, Tenn. – On Saturday, Mar. 23, 2013, a Consumer Awareness and Protection Expo/Shred Event will be held at the Knoxville Expo Center, 5441 Clinton Highway, Knoxville, Tenn. This event is part of National Consumer Protection Week (NCPW), which is a worldwide campaign, led by the Federal Trade Commission to encourage consumers across the country to take full advantage of their consumer rights. In support of NCPW, the U.S. Postal Inspection Service and the Tennessee Highway Patrol, along with other community partners are hosting this free event.
NCPW is a collaborative effort between more than 20 state and federal government agencies, including the U.S. Postal Inspection Service, Internal Revenue Service, and Securities and Exchange Commission, as well as non-government groups such as the Better Business Bureau.
The event will provide the general public with information on how they can protect themselves from becoming a victim of various types of fraud, including preventing identity theft. Identity theft continues to be one of the fastest growing crimes in the United States. It is important for consumers to recognize that identity theft is not just a financial crime. This crime varies widely, and can include financial identity theft (checking and/or credit card fraud), criminal identity theft, governmental identity theft, and medical identity theft.
Identity theft is a crime in which an impostor obtains key pieces of personal identifying information (PII) such as Social Security numbers and driver's license numbers and uses them for their own personal gain. It can start with lost or stolen wallets, stolen mail, a data breach, computer virus, “phishing” scams, or paper documents thrown out by you or a business (dumpster diving).
Since shredding documents containing these key pieces of personal information rather than throwing them in the trash is one way to prevent identity theft, participants can bring unwanted documents to the event to be shredded free of charge.
Agencies participating in the event include the U.S. Postal Inspection Service, U.S. Attorney’s Office, Federal Bureau of Investigation, U.S. Secret Service, Internal Revenue Service, Tennessee Department of Safety and Homeland Security, Knoxville Police Department Internet Crimes Against Children Task Force, and others.
For additional information regarding this event, please contact Postal Inspector Wendy Boles at 865-692-0795.
Jeffery Stock Sentenced to 46 Months in Federal Prison for Sex Offender Registration CrimeRead the Press Release
Stock placed on federal supervised release for life
GREENEVILLE, Tenn. -- Jeffery Lee Stock, 44, of Newport, Tenn., was sentenced on February 27, 2013, to serve 46 months in prison by the Honorable J. Ronnie Greer, U.S. District Judge. Stock previously pleaded guilty to a federal grand jury indictment charging him with interstate travel and failure to register as a convicted sex offender.
In January 2013, Stock pleaded guilty in state court in Cocke County, Tenn., to second-degree murder, arson, and theft relating to the disappearance of Megan Maxwell. Under the terms of the plea agreement Stock negotiated with the district attorney general, to serve a term of 18 years in state prison at 100%, with credit for time served since he was arrested on the federal sex offender registration charge and credit for any time he will serve on the federal violation.
Under the Cocke County judgment, Stock faces no time on supervised release by the state court judicial system. Judge Greer ordered Stock, whom he described as highly likely to commit future offenses and exhibiting a very profound lack of respect for the law, to serve lifetime supervised release by the federal court system upon his release from state court prison.
The indictment and subsequent conviction of Stock was the result of an investigation conducted by the Cocke County Sheriff’s Office, Newport Police Department, and the U.S. Marshals Service. Assistant U.S. Attorney Helen Smith represented the United States.
William C. Killian, U.S. Attorney for the Eastern District of Tennessee, stated, “This is a very good example of federal and state law enforcement authorities working together to maximize protection to local communities. Because of the negotiated plea agreement Stock is now on federal supervised release for the remainder of his life, reducing the chances that he will victimize other young women again.”
Knoxville Woman Sentenced to 30 Months in Federal Prison for Identity Theft SchemeRead the Press Release
KNOXVILLE, Tenn.- Adrianne Y. Thompson, 41, of Knoxville, Tenn., was sentenced on Feb. 20, 2103, by the Honorable Thomas W. Phillips, U.S. District Court Judge, to serve 30 months in federal prison for misusing the Social Security number of another person and aggravated identity theft. Thompson had previously pleaded guilty to the charges.
At the time she engaged in the criminal conduct, Thompson was employed at a cellular telephone store. Through her employment at the store, she obtained the Social Security number of her victim under the false pretense of determining the victim’s eligibility for a new cellular telephone. She then used the victim’s Social Security number to open a checking account at a bank in Knoxville, Tenn. After opening the checking account using the victim’s Social Security number, Thompson proceeded to use that checking account to write fraudulent checks.
U.S. Attorney William C. Killian stated, “Identity theft is a growing problem in our society that causes great harm to its victims. Under federal law, aggravated identity theft is punishable by a mandatory minimum term of two years in prison to be served consecutive to any other sentence. We will continue to use the aggravated identity theft statute to ensure that people who engage in this type of conduct spend time in federal prison.”
The investigation was led by the Knoxville Police Department’s Property Crimes Unit. Assistant U.S. Attorney Zachary Bolitho represented the United States.
Bernard Addison Sentenced to 46 Months in Prison for Conspiring to Counterfeit Us Postal Service Money OrdersRead the Press Release
Addison Possessed $2.5 Million Worth Of Counterfeit Money Orders
KNOXVILLE, Tenn.-- Bernard Addison, 62, of Knoxville, Tenn., was sentenced to serve 46 months in federal prison by the Honorable Thomas W. Phillips, U.S. District Judge. Upon his release from prison, Addison will be supervised by the U.S. Probation Office for a period of two years.
The sentence was the result of a guilty plea June 8, 2012, to a federal grand jury indictment charging Addison with conspiring to counterfeit U.S. Postal Service money orders. Addison, formerly a local radio personality, had been receiving counterfeit money orders from the country of Ghana for several months and was filling out the payee information on the bogus money orders and redistributing them to others. He received a weekly MoneyGram payment of $250.00 for his involvement in the scheme.
The indictment and subsequent conviction of Addison was the result of an investigation conducted by the U.S. Postal Inspection Service and U.S. Secret Service. Assistant U.S. Attorney Matthew Morris represented the United States.
Thirty-Two Individuals Convicted of Cocaine, Marijuana, and Oxycodone ConspiraciesRead the Press Release
GREENEVILLE, Tenn. – Between September 2011 and February 2013, the 32 individuals, listed below have all pleaded guilty to various drug conspiracies related to cocaine, marijuana, and oxycodone:
1. William A. Lawson, 66, of Rogersville, Tenn.; 2. Randal Michael Lawson, 57, of Limestone, Tenn.; 3. James Light, 64, of Rogersville, Tenn.; 4. Kenneth A. Lawson, 45, of Limestone, Tenn.; 5. Tia L. Lawson, 40, Kingsport, Tenn.; 6. Elia Maria Camacho Garcia, 30, Burlington, N.C.; 7. Brock A. Lawson, 26, Rogersville, Tenn.; 8. Jeffrey M. Bledsoe, 31, Kingsport, Tenn.; 9. Jessica L. Lawson, 32, Bristol, Tenn.; 10. Charles T. Laing, 30, Boynton Beach, Fla.; 11. Jackie D. Dykes, 48, of Rogersville, Tenn.; 12. Michael L. Dykes, 51, of Rogersville, Tenn.; 13. Lorne L. Loucel, 32, of Rogersville, Tenn.; 14. Lisa A. Crawford, 37, of Rogersville, Tenn.; 15. Virginia D. Light, 49, of Rogersville, Tenn.; 16. Asa Kermit M. Calhoun, 33, of Rogersville, Tenn.; 17. Steve A. Gooch, 29, of Rogersville, Tenn.; 18. Jonathan L. Light, 24, of Kingsport, Tenn.; 19. Jeremy R. Light, 28, of Rogersville, Tenn.; 20. Michael B. Dykes, 30, of Rogersville, Tenn.; 21. Daniel L. Dykes, 29, of Rogersville, Tenn.; 22. Christy D. Dykes, 32, of Rogersville, Tenn.; 23. Levi D. Love, 24, of Kingsport, Tenn.; 24. Shandeeda M. Compton, 31, of Rogersville, Tenn.; 25. Jessica R. Bernard, 23, Greeneville, Tenn.; 26. Cody A. Arnold, 27, Greeneville, Tenn.; 27. Joyce L. Malone, 35, Greeneville, Tenn.; 28. Christopher L. Tipton, 30, Afton, Tenn.; 29. Abbey M. Armstrong, 28, Greeneville, Tenn.; 30. Amanda D. Bernard, 23, Greeneville, Tenn.; 31. Christy R. Seay, 39, Greeneville, Tenn.; and 32. Marvin Neal Southerland, 34, Greeneville, Tenn.
This investigation began in 2009 and targeted individuals in the Tennessee counties of Greene, Sullivan, and Hawkins, who were trafficking in large quantities of cocaine and marijuana supplied by a drug trafficking organization in North Carolina. In addition, individuals in Tennessee were distributing large quantities of oxycodone pills obtained from Nevada and Georgia. In 2010, Laing and other individuals opened The Liberty Wellness Pain Clinic in Norcross, Ga., and began using the clinic to obtain oxycodone for distribution in the Eastern District of Tennessee. In April 2012, the Drug Enforcement Administration (DEA) in Georgia raided the clinic and shut down its operations.
During the investigation, the DEA, in conjunction with agencies in Tennessee, North Carolina, and Georgia, seized a total of 105 kilograms of cocaine, 271 pounds of marijuana, hundreds of oxycodone pills, multiple firearms, approximately $2.5 million in cash, and three parcels of real property in the Eastern District of Tennessee.
In total, the investigation revealed that, between 2002 and 2012, approximately 6,545 kilograms of marijuana, 35 kilograms of cocaine, and over 20,000 oxycodone pills were distributed in the Eastern District of Tennessee by these individuals.
“These cases are an example of extraordinary cooperation and effort on behalf of several local, state, and federal agencies. With the substantial support of these local and state law enforcement agencies, we were able to convict a large number of individuals associated with this very significant drug operation. There were millions of dollars, hundreds of pounds of cocaine, marijuana, and tens of thousands of oxycodone pills involved in this widespread illegal operation. The investigation continues. It is essential for local, state and federal authorities to work together to rid society of such criminal activity. In these cases, the cooperative effort was superb. Hawkins, Sullivan and Greene county residents are safer because of these prosecutions and convictions. AUSA Hebets, representing the United States, has worked long and diligent hours, for months, to achieve these convictions,” said U.S. Attorney Bill Killian.
Hawkins County Tennessee Sheriff Ronnie Lawson stated, “This is the first time in the history of Hawkins County that local, state, and federal agencies have teamed together to rid one community of a terrible drug problem. It gives me great pride to be a part of that.”
Sullivan County Tennessee Sheriff Wayne Anderson stated, “This investigation resulted in the conviction of several high profile individuals who have been engaging in criminal conduct in our communities since the 1990’s. This is a great example of what we can accomplish when we work together.”
Greene County Tennessee Sheriff Steve Burns stated, “I am very proud of this multi-agency investigation which has made a large impact on the drug problem in this region.”
In addition to the drug distribution charges, several individuals, including William A. Lawson, Randall Michael Lawson, Elia Maria Camacho Garcia, and Charles T. Laing, also pleaded guilty to conspiracies to launder money.
William A. Lawson and Randall Michael Lawson also pleaded guilty to Social Security Fraud. Charles T. Laing and Jeffrey M. Bledsoe also pleaded guilty to possessing a firearm in furtherance of the drug trafficking offenses.
These individuals are all awaiting sentencing before the Honorable Leon Jordan, U.S. District Court Judge and the Honorable J. Ronnie Greer, U.S. District Court Judge. Randall Michael Lawson faces a mandatory term of 20 years in prison, a maximum fine of $20,000,000.00, and at least 10 years supervised release upon his release from prison. William A. Lawson, Kenneth A. Lawson, Tia L. Lawson, Brock A. Lawson, and Jessica L. Lawson each face mandatory terms of 10 years in prison, maximum fines of $10,000,000.00 and at least five years supervised release upon release from prison. James Light, Elia Maria Camacho Garcia, and Jeffrey M. Bledsoe each face mandatory terms of five years in prison, maximum fines of $5,000,000.00, and at least four years supervised release upon release from prison. The remaining individuals each face maximum terms of 20 years in prison, maximum fines of $1,000,000.00, and at least three years of supervised release upon release from prison. Additionally, Charles T. Laing and Jeffrey M. Bledsoe both face consecutive terms of five years in prison in connection with the firearms charges. All also face mandatory court assessments.
This indictment was the result of an investigation by the Hawkins County Tennessee Sheriff’s Department, Sullivan County Tennessee Sheriff’s Department, Greene County Tennessee Sheriff’s Department; Second Judicial Drug Task Force, Kingsport, Tennessee, Police Department, Third Judicial Drug Task Force, Tennessee Bureau of Investigation, and DEA. Assistant U.S. Attorney Caryn L. Hebets represented the United States.
Mario Hernandez Velazquez Sentenced to Serve 65 Years in Prison on Cocaine and Firearms ConvictionsRead the Press Release
GREENEVILLE, Tenn. – Mario Hernandez Velazquez, 45, of Johnson City, Tenn., was sentenced on Feb. 7, 2013, by the Honorable Leon Jordan, U. S. District Court Judge, to serve 65 years in federal prison.
Velazquez was convicted at trial inAugust 2012, of distribution and conspiracy to distribute cocaine, being an illegal immigrant in the United States in possession of a firearm and ammunition, using and carrying a firearm during and in relation to a drug trafficking offense, and possession of a firearm in furtherance of a drug trafficking offense. As a result of these convictions, Velazquez was sentenced to the mandatory minimum sentence of 65 years in federal prison. There is no parole in the federal system.
Velazquez was one of 36 individuals indicted in October 2010 for his participation in a large scale cocaine trafficking organization which was responsible for the distribution of several kilograms of cocaine per month in the Tri-Cities area over an extended period of time.
Velazquez sold cocaine or assisted in the sale of cocaine to a confidential informant working on the behalf of law enforcement on multiple occasions in 2010. During these undercover transactions, Velazquez admitted he was the firearms dealer for the criminal organization and was always armed. In one transaction, Velazquez told the individual that someone broke into his residence and stole two kilograms of cocaine. As a result, he routinely packed his cocaine and guns in a suitcase and took it with him whenever he left home. In a subsequent transaction, Velazquez told the individual that if someone came to rob him again, he would “blow them to hell,” and “not many idiots are going to withstand two or three bullets.”
Overall, law enforcement agents made over 100 cocaine buys from the various defendants in this conspiracy. The investigation concluded with the execution of 13 search warrants at various locations in Johnson City, Kingsport, and Knoxville, Tennessee. During these searches, agents found approximately 3.5 kilograms of cocaine, 200 pounds of marijuana, and a significant number of firearms and ammunition.
Tomas Estrada Sarabia, Antonio Herrera, Manuel Burelo and Andres Linares were previously sentenced to 480 months, 211 months, 134 months and 124 months respectively. Luciano Hernandez Valiente, Amansio Garcia Juarez, and Adan Fernandez were all previously sentenced to 120 months each.
Sullivan County Tennessee Sheriff’s Office, Kingsport Tennessee Police Department, Bristol Tennessee Police Department, Carter County Tennessee Sheriff’s Office, Elizabethton Tennessee Police Department, Erwin Tennessee Police Department, Washington County Tennessee Sheriff’s Office, Johnson City Tennessee Police Department, Jonesborough Tennessee Police Department, Hamblen County Tennessee Sheriff’s Office, Morristown Tennessee Police Department, Johnson County Tennessee Sheriff’s Office, Knox County Tennessee Sheriff’s Office, Knoxville Tennessee Police Department, Knoxville Tennessee High Intensity Drug Trafficking Area Task Force, Tennessee Bureau of Investigation, Federal Bureau of Investigation, and Immigration and Customs Enforcement, all of which provided invaluable assistance during the course of the investigation. Assistant U. S. Attorneys Wayne Taylor and Christian Lampe represented the United States.
U.S. Attorney William C. Killian stated, “This illegal drug distribution organization was one of the worst. They distributed hundreds of pounds of cocaine, using weapons to protect their drugs, and involved many others in the conspiracy. Our prosecutors and the federal and state law enforcement agencies working on this case did a tremendous job of obtaining and presenting the evidence in this case. We were able to show the scope of the drug distribution activities of the organization, including the use and threatened use of firearms to protect their illegal distribution of drugs. I want to thank all those involved in bringing Mr. Velazquez to justice.”
This case was part of the Department's Organized Crime Drug Enforcement Task Force (OCDETF) and the High Intensity Drug Trafficking Areas (HIDTA) programs. OCDETF is the primary weapon of the United States against the highest level drug trafficking organizations operating within the United States, importing drugs into the United States, or laundering the proceeds of drug trafficking. The HIDTA program enhances and coordinates drug control efforts among local, State, and Federal law enforcement agencies. The program provides agencies with coordination, equipment, technology, and additional resources to combat drug trafficking and its harmful consequences in critical regions of the United States.
Funding for some of the task forces involved in this investigation also came from the Appalachian High Intensity Drug Area Task Force (HIDTA) which was created in 1998, one of 32 areas in the nation that have been designated as HIDTAs. The HIDTA Program began in 1988 when Congress authorized the Director of The Office of National Drug Control Policy (ONDCP) to designate areas within the United States which exhibit serious drug trafficking problems and harmfully impact other areas of the country as HIDTAs. The HIDTA Program provides additional federal resources to those areas to help eliminate or reduce drug trafficking and its harmful consequences.
Jimmy Rollins Pleads Guilty to Producing Child PornographyRead the Press Release
CHATTANOOGA, Tenn. – Jimmy Rollins, 44, of Palmer, Tenn., pleaded guilty on Feb. 5, 2013, in the U.S. District Court for the Eastern District of Tennessee at Chattanooga, to producing child pornography. Sentencing has been set for May 6, 2013, in the U.S. District Court in Chattanooga.
Rollins faces a minimum term of 25 years up to 50 years in prison, a fine of up to $250,000 and supervised release from five years to life.
In February 2012, an undercover investigation by the Winchester Police Department identified Rollins as a person who used the internet to traffic in pornographic images of children. A search of his home in May 2012 revealed equipment used in the production of child pornography, and multiple photographic images and videos of Rollins engaged in sexual activity with a known minor. All the child pornographic scenes were set in a bedroom that can be recognized as Rollins’. Rollins had been previously convicted in 1994 of two counts of statutory rape in the Criminal Circuit Court of Grundy County, Tennessee.
U.S. Attorney William C. Killian stated, “We will aggressively prosecute those who are using interstate commerce to victimize children for profit and sexual gratification. Let the message be clear: If you engage in production of child pornography in the Eastern District of Tennessee, you will be caught and you will serve significant time in prison.”
On Nov. 27, 2012, a nine-count indictment, which included the aforementioned charge, was returned against Rollins by a federal grand jury sitting in Chattanooga, Tenn. This indictment was the result of an ongoing investigation by the Winchester Police Department, Tennessee Bureau of Investigation and Federal Bureau of Investigation. John P. MacCoon, Assistant U.S. Attorney 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."
Cocke County Residents Arrested for Drug ViolationsRead the Press Release
GREENEVILLE, Tenn. – Billy Webb, 77, Gary Eugene Teague, 45, Emily Suzanne Sexton, 26, Timothy Jay Gilbert, 50, Christopher Lynn Suggs, 52, Tammie Brown Suggs, 43, and Ella Mae Gregg, 63, all of Newport, Tenn., and Regina Faye Webb, 36, of Cosby, Tenn., were all arrested on Feb. 6, 2013, after being indicted by a federal grand jury on charges involving drug trafficking, specifically involving oxycodone. Ralph Edward Teague, 81, and Clayton Carroll Owenby, 45, both of Newport, Tenn., were also named in the indictment and were already in custody on other charges.
Gary Teague, Emily Sexton, Regina Webb, Christopher Suggs, Tammie Suggs, and Ella Mae Gregg each made their initial appearance before U.S. Magistrate Judge Dennis Inman on Feb. 6, 2013, and were temporarily detained pending detention hearings scheduled for Feb. 7, 2013. Ralph Teague, Billy Webb, and Timothy Gilbert are scheduled for initial appearance on Feb. 7, 2013. Clayton Owenby is scheduled for an initial appearance on Feb. 20, 2013.
According to the indictment on file with the U.S. District Court, the eight count indictment charges these individuals with conspiring to distribute oxycodone, a Schedule II controlled substance. The indictment also charges Ralph Teague and Gary Teague with distribution or possession with intent to distribute oxycodone on five occasions in 2012. Ralph Teague and Gary Teague are also charged with maintaining a residence for the purpose of distributing oxycodone.
If convicted, the defendants face the following penalties: Ralph Teague faces up to 170 years in prison and fines of up to $10,500,000; Billy Webb faces up to 30 years in prison and fines of up to $2,000,000; Gary Teague faces up to 110 years in prison and fines of up to $6,500,000; Clayton Owenby, Regina Webb, Timothy Gilbert, and Ella Gregg each face up to 30 years in prison and fines of up to $2,000,000; Emily Sexton, Christopher Suggs, and Tammie Suggs each face up to 20 years in prison and fines of up to $1,000,000.
This indictment is the result of a joint investigation by the Cocke County Sheriff’s Office and the Tennessee Bureau of Investigation. Assistant U.S. Attorney Suzanne Kerney-Quillen 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.
Brandon Royce Clark Sentenced to 100 Months for Possession of AmmunitionRead the Press Release
GREENEVILLE, Tenn. - Brandon Royce Clark, 23, of Morristown, Tenn., was sentenced in the U.S. District Court for the Eastern District of Tennessee at Greeneville, Honorable R. Leon Jordan, U.S. District Judge, presiding, to serve 100 months in prison for the felony offense of possession of ammunition by a previously convicted felon.
Upon his release from prison, Clark will be subject to supervised release under the supervision of the U.S. Probation Office for three years. There is no parole in the federal system.
Clark pleaded guilty in June 2012, to possessing ammunition after having been previously convicted of a felony offense. Federal law prohibits any person, previously convicted of any offense which carries a potential penalty exceeding one year of incarceration, from thereafter possessing a firearm or ammunition
Law enforcement agencies participating in the joint investigation which led to indictment and subsequent conviction of Clark included the Morristown Police 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 crimes face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
Former TVA Vice President Indicted for Unlawful Financial Investments in IranRead the Press Release
KNOXVILLE, Tenn. – Federal agents arrested a former TVA vice president, Masoud Bajestani, 57, formerly of Chattanooga, Tenn., as he arrived at the Atlanta international airport on a flight from Dubai Sunday morning. Bajestani was indicted on four felony charges by a federal grand jury in Knoxville on Dec. 4, 2012, for allegedly violating the International Emergency Economic Powers Act, and making false statements to the Tennessee Valley Authority (TVA).
Bajestani appeared in court on Feb. 4, 2013, before U. S. Magistrate Judge C. Clifford Shirley, Jr., and pleaded not guilty. The United States made a motion for Bajestani to be detained pending trial and a detention hearing is scheduled for Wednesday, Feb. 6, 2013, in U. S. District Court, in Knoxville.
According to the indictment on file with the U.S. District Court, Bajestani filed a false document with TVA in order to withdraw $1,500,000 from his deferred compensation account when he was employed as a vice president at the Watts Bar Unit II nuclear power plant during its construction phase. The indictment alleges that Bajestani then conspired with others and sent $600,000 of those funds to Iran for financial investment purposes. Economic sanctions have been imposed against Iran and it is unlawful to make financial investments in Iran without authorization from the United States Office of Foreign Assets Control.
The maximum possible penalty for each of Counts 2-3 of the indictment, which charge violations of the International Emergency Economic Powers Act, is 20 years in prison and a $1,000,000 fine. The maximum possible penalties for Count One of the indictment, which charges conspiracy, Count Four of the indictment, which charges false statements is five years in prison and a $250,000 fine.
This indictment is the result of an investigation by Homeland Security Investigations, the Internal Revenue Service, Tennessee Valley Authority – Office of Inspector General, and the Federal Bureau of Investigation. Assistant U. S. Attorney Jeffrey Theodore is representing 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
Telford Man Pleads Guilty to Illegal Distribution of SteroidsRead the Press Release
GREENEVILLE, Tenn. – On Jan. 30, 2013, Freddie Matthew Sergent, 30, of Telford, Tenn., pleaded guilty in U.S. District Court to unlawfully distributing anabolic steroids. Sentencing has been set for 9:00 am on August 12, 2013. Sergent faces up to 10 years in prison and a $500,000 fine.
Anabolic steroids are synthetically produced variants of the naturally occurring male hormone testosterone and are regulated under the Controlled Substances Act (CSA) as a Schedule III controlled substance. As a Schedule III controlled substance, they may not be possessed lawfully in the United States without a prescription. Distribution and possession with intent to distribute anabolic steroids by a person who is not a Drug Enforcement Agent (DEA) registrant, such as a physician or a pharmacy, is unlawful and a violation of the CSA.
From approximately 2009 to April 2012, Sergent unlawfully distributed anabolic steroids from his residence in Telford, Tenn. He obtained raw steroid powders and other materials through the U.S. mails and other carriers from sources in China. Sergent further processed and packaged the steroids into vials containing approximately 300 milliliters of a solution containing an anabolic steroid, to include the Schedule III anabolic steroid boldenone undecylenate, often referred to by the trade name “Equipoise.” He then sold the steroids to customers in eastern Tennessee as well as customers across the United States.
In March 2012 Sergent mailed a package to a customer in Michigan that was intercepted and opened pursuant to a federal search warrant. Agents found a glass bottle with a label affixed which read in part, "Equipoise 300 mg/ml." Subsequent testing by the DEA Laboratory determined the bottle to contain boldenone undecylenate, an anabolic steroid.
In April 2012, a federal search warrant was executed at Sergent’s residence. Agents recovered steroid powders, materials used to process and package steroids, syringes, computers used to order and sell steroids over the Internet, and three firearms. Sergent admitted that he had been ordering steroid powder from China, processing and packaging the steroids, and selling the steroids to customers throughout the United States, sending the steroids through the U.S. mail. He said he had sold approximately $80,000 worth of steroids at $40 per vial.
Agencies involved in this investigation which led to the charges and guilty plea included the Drug Enforcement Administration, U.S. Postal Inspection Service, Homeland Security Investigations, and the Washington County Sheriff’s Office. Assistant U.S. Attorney Neil Smith represented the United States.
Arnoldo Ayala Guevara Cazarez Sentenced to 235 Months in Prison for Methamphetamine ConspiracyRead the Press Release
GREENEVILLE, Tenn. - On Tuesday, Jan. 22, 2013, Arnoldo Ayala Guevara Cazarez, 49, was sentenced by the Honorable J. Ronnie Greer, U.S. District Judge, to serve 235 months in federal prison for his leadership role in trafficking in methamphetamine. Guevara pleaded guilty on June 5, 2012 to conspiring to distribute and possess with the intent to distribute 500 grams or more of methamphetamine.
Guevara, his brother, Jose Cruz Guevara and his nephew, Habraham Enrique Guevara, conspired to bring four pounds of high quality Mexican methamphetamine from Oklahoma City to sell in upper East Tennessee. All four pounds were found at the Guevara family home in Limestone, Tenn. One pound was 92.9 percent pure and qualified as meth ice. Arnoldo Guevara was the main source of supply for the four pounds of methamphetamine. He set the price and directed the activities of others with regard to the transportation and ultimate delivery of the methamphetamine. Overall, the investigation resulted in the conviction of six individuals, all natives of Sinaloa, Mexico, who were illegally present in the United States. Arnoldo Guevara is an illegal alien from Mexico who had been deported from the United States on four prior occasions, but was living in Oklahoma during the period of this conspiracy. Habraham Enrique Guevara was previously sentenced to 84 months in prison for his role as a translator, lookout and transporter in the conspiracy. Jose Cruz Guevara is set for sentencing on March 4, 2013.
U.S. Attorney William C. Killian stated, “The quantity of methamphetamine seized in this case was the second largest prosecuted in federal court in the northeast division of the Eastern District of Tennessee. Methamphetamine is a highly addictive drug and the presence of high quality Mexican methamphetamine in Washington County presented a real danger to the safety of that community.”
The indictment and subsequent conviction of Guevara was the result of an investigation by the Federal Bureau of Investigation, Department of Homeland Security Investigations, Washington County Sheriff’s Office and Second Judicial District Drug Task Force. Assistant U.S. Attorneys Helen Smith and Wayne Taylor represented the United States in the prosecution.
Sean Dennis Pleads Guilty to Fraudulently Issuing Postal Money OrdersRead the Press Release
KNOXVILLE, Tenn. - Sean Thomas Dennis, 29, formerly of La Follette, Tenn., pleaded guilty on Jan. 18, 2013, in the U.S. District Court for the Eastern District of Tennessee at Knoxville, to an indictment charging him with fraudulently issuing U.S. Postal Money Orders. Sentencing has been set for 10:30 a.m., Apr. 8, 2013, before the Honorable Thomas W. Phillips, U.S. District Judge.
In conjunction with his guilty plea, Dennis, a former U.S. Postal Service employee, admitted to issuing money orders without having first receiving or paying the full amount required for their issuance. Between October 2010 through January 2011, Dennis embezzled $32,096.21 from the U.S. Postal Service by fraudulently issuing 43 money orders. He told federal investigators that committed these acts to obtain money to finance his drug addiction.
This conviction was the result of an investigation by the United States Postal Service, Office of Inspector General. Assistant U.S. Attorney Frank M. Dale, Jr. represented the United States.
Knoxville Woman Sentenced to One Year in Prison for Lying to Court About Cancer DiagnosisRead the Press Release
KNOXVILLE, Tenn. – Angela Elwood, 48, of Knoxville, Tenn., was sentenced on Jan. 17, 2013, by the Honorable Thomas W. Phillips, U.S. District Court Judge, to serve one year in federal prison.
On Aug. 17, 2012, United States Attorney William C. Killian filed an information in U.S. District Court charging Elwood with obstructing justice by lying to the court about having cancer so that she could delay her reporting date to the federal Bureau of Prisons to begin a prison term imposed for a bank fraud conviction.
According to court documents, Elwood admitted that following her bank fraud conviction in 2009, and while awaiting designation and a reporting date to a federal prison facility, she obstructed the due administration of justice by having the Court extend her reporting date to federal prison based on medical documents submitted to the Court that she fabricated to falsely state that she had been diagnosed with breast cancer and needed immediate medical treatment. At the time Elwood submitted the false medical documents to the Court, she already had been told by a medical professional that she in fact did not have breast cancer.
This investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney F. M. (Trey) Hamilton III represented the government.
Knoxville Woman Sentenced to 20 Months in Federal Prison for Defrauding U.S. Department of Veterans Affairs and Social Security AdministrationRead the Press Release
KNOXVILLE, Tenn.- On Jan. 16, 2013, Martha Ann Kaczmarczyk, 63, of Knoxville, Tenn., was sentenced to serve 20 months in federal prison today by the Honorable Thomas W. Phillips, U.S. District Judge, for fraudulently obtaining disability payments from the U.S. Department of Veterans Affairs (VA) and the Social Security Administration.
As part of the scheme, Kaczmarczyk assisted her husband in obtaining disability payments based on a false claim of combat-related Posttraumatic Stress Disorder. Additionally, Kaczmarczyk herself defrauded the Social Security Administration by falsely claiming that she was disabled due to a back injury. In addition to the 20 month prison sentence, Kaczmarczyk was ordered to pay $326,390.90 in restitution to the VA and Social Security Administration.
“These benefits are intended for our veterans. The outcome of this case sends a message to all who consider trying to falsely obtain veteran benefits. We will continue to prosecute those who wrongfully receive government benefits,” said U.S. Attorney Bill Killian.
The investigation was a joint effort between the Federal Bureau of Investigation, Department of Veterans Affairs Office of Inspector General, Social Security Administration Office of Inspector General, and the U.S. Air Force.
Assistant U.S. Attorney Zachary Bolitho represented the United States.
Federal Grand Jury Indicts Rocky and Leon Houston for Federal Firearms ViolationsRead the Press Release
KNOXVILLE, Tenn. – On Tuesday, Jan. 15, 2013, a federal grand jury in Knoxville returned a 14-count indictment against Rocky Houston, 52, charging him with being a felon in possession of firearms. A one-count indictment was also returned again Leon Houston, 54, for possession of firearms while being an unlawful user of controlled substances.
Both Houstons are residents of Ten Mile, Tenn. If convicted, each faces up to 10 years in prison and a fine of up to $250,000.
Arraignment for Rocky Houston is scheduled for 3:00 p.m., Wednesday, Jan. 16, 2013, in U.S. District Court in Knoxville. An arraignment and detention hearing for Leon Houston is scheduled for 1:30 p.m., Thursday, Jan. 17, 2013, also in U.S. District Court in Knoxville.
Members of the public are reminded that these are only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
Rocky and Leon Houston Arrested for Federal Firearms ViolationsRead the Press Release
KNOXVILLE, Tenn. – On Friday, January 11, 2013, brothers Rocky Houston, 52, and Leon Houston, 54, both of Ten Mile, Tenn., were arrested on federal firearms charges. Agents and officers from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Roane County Sheriff's Office, and other local law enforcement agencies executed arrest and search warrants at the Houston family property located in Roane County, Tenn., announced William C. (Bill) Killian, U.S. Attorney for the Eastern District of Tennessee, Carl Vasilko, Acting Special Agent in Charge, ATF, and Jack Stockton, Sheriff of Roane County.
Rocky Houston has been charged with being a convicted felon in possession of firearms, and Leon Houston has been charged with possession of firearms while being an unlawful user of controlled substances. Upon conviction, each faces up to 10 years in prison and a fine of up to $250,000. Both will appear before a U.S. Magistrate Judge on Monday, January 14, 2013, for an Initial Appearance on the charges which have been lodged against them. Rocky Houston will appear at 10:30 a.m., and Leon Houston will appear at 3:00 p.m., before the Honorable Bruce Guyton, U.S. Magistrate Judge.
U.S. Attorney Bill Killian expressed his appreciation to the agents of ATF and the officers from the Roane, Knox and Loudon County Sheriffs' Offices for their participation in the successful execution of these warrants. “Our commitment of cooperation and support from our federal law enforcement agencies to our state and local colleagues is strong. It will remain so," said U.S. Attorney Killian.
Members of the public are reminded that these are only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
Russian National Convicted of 2002 Double Homicide Committed in GatlinburgRead the Press Release
KNOXVILLE, Tenn. – On December 28, 2012, a jury in the Russian Federation Court for the Moscow Region found Yuri Solovyev, 44, guilty of the July 2002 murders of his roommates Vladimir Yemelyanov and Sufiya Arslanova in Gatlinburg, Tenn., where they all three worked on seasonal tourist visas. Solovyev is expected to be sentenced within the coming weeks.
Shortly after the murders, Sevier County and Gatlinburg authorities brought homicide charges against Solovyev for the grisly crime based upon a strong circumstantial case. The proof showed Solovyev acquired the murder weapon and purchased cleaning solutions to attempt to clean the apartment, while giving conflicting statements about the whereabouts of his missing roommates. Solovyev fled before the bloody crime scene was discovered, but the blood of the victims was found in his abandoned automobile, and, thereafter, video-surveillance identified him using the victims’ credit cards.
The Federal Bureau of Investigation traced Solovyev to Moscow where he admitted to the Russian authorities in 2010 that he stole more than $19,000 in cash from the victims and buried their bodies in the Great Smoky Mountains National Park, but he claimed an unidentified man named “Alex”, unknown to the U.S. investigation, committed the murders.
Based upon Solovyev’s statements to the Russian authorities, Gatlinburg authorities found the remains of the victims almost a decade after the murders, along with the murder weapon and other evidence which served to support the evidence that Solovyev acted alone. Solovyev is scheduled to be sentenced later in January.
Extradition of Russian nationals to the United States is not possible. However, Russian law allows for Russian nationals to be prosecuted under Russian law for crimes committed outside of the Russian Federation. This is the first time in which the Russians have prosecuted a Russian national on U.S. murder charges in response to a request for transfer of prosecution. In conjunction with bringing their own murder charges, Russian authorities spent a week in Gatlinburg, Tennessee, interviewing the witnesses and the local detective, after considering the investigative materials and lab reports transmitted under the Mutual Legal Assistance Treaty.
U.S. Attorney Bill Killian commended the verdict and stated, “I am very pleased the Department of Justice has been able to assist the authorities in Sevier County with bringing this man to justice. It sends an important message that fleeing to a foreign country – even if extradition is not possible – does not necessarily preclude a successful prosecution. This is a case of excellent law enforcement effort, diligence and persistence in bringing this defendant to justice for this gruesome crime. I especially applaud the work of Gatlinburg Detective Tim Williams, FBI Special Agent Buddy Early and AUSA Chuck Atchley. We hope that the sentence imposed in Russia will reflect the seriousness of the offense.”
“This case is an example of how criminal justice is not constrained by geographical boundaries. Local, state, federal, and international law enforcement partners all have a common interest in ensuring that there are no safe havens for fugitives from justice. The FBI commends the cooperative efforts of everyone involved,“ said Kenneth L. Moore, Special Agent in Charge, Federal Bureau of Investigation, Knoxville Division.
This case was prosecuted as a result of the efforts by Assistant U.S. Attorney Chuck Atchley, the Department of Justice’s Office of International Affairs, City of Gatlinburg Detective Tim Williams, and Federal Bureau of Investigation Special Agent Buddy Early and Legal Attaché Bryan Earl.
Kaylen Butcher Sentenced to 61 Months in Prison for Armed RobberyRead the Press Release
GREENEVILLE, Tenn. - Kaylen Butcher, 19, of Greeneville, Tenn., was sentenced on Jan. 10, 2013, to serve a total of 61 months in prison by the Honorable Leon Jordan, Senior U.S. District Judge. Upon his release from prison, he will serve five years of supervised release. Butcher was further ordered to pay restitution to the victim of her crime.
Butcher pleaded guilty in September 2012 to the June 2012 robbery by force of the Stop and Go Market in Chuckey. Butcher also pleaded guilty to carrying a firearm in the commission of the robbery. Federal law mandates a five year minimum mandatory sentence for carrying a firearm in the commission of a violent offense. In determining her sentence, the court considered Butcher’s cooperation against Larry Morgan, who was convicted at trial in October 2012, of the armed robberies of the Stop and Go Market and Greeneville Federal Bank. Butcher testified against Morgan at trial.
Law enforcement agencies participating in the joint investigation included the Greeneville Police Department, Greene County Sheriff’s Department, Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Johnson City Police Department, Tennessee Bureau of Investigation Crime Lab, and the Sullivan County Sheriff’s Department dive team. 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.
Tammy Copas Sentenced to 121 Months in Prison for Armed RobberiesRead the Press Release
GREENEVILLE, Tenn. - Tammy Copas, 40, of Johnson City, Tenn., was sentenced to serve a total of 121 months in prison by the Honorable J. Ronnie Greer, U.S. District Judge. Upon release from prison she will be subject to three years supervised release under the supervision of the U.S. Probation Office.
Copas pleaded guilty on May 14, 2012, to robberies by force of the Discount Tobacco Outlet store in Elizabethton and the La Perla restaurant in Johnson City, both of which occurred in January 2012. Copas also pleaded guilty to brandishing a firearm in the commission of the La Perla robbery. She was sentenced to 37 months for each of the robberies, with the terms to run concurrently and 84 months for brandishing the firearm, to run consecutively to the robbery sentences. Federal law mandates a seven year minimum mandatory sentence for brandishing a firearm in the commission of a violent offense.
Law enforcement agencies participating in the joint investigation which led to indictment and subsequent conviction of Lopez included the Johnson City Police Department, Elizabethton Police Department and Federal Bureau of Investigation. 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.
Robert Randall “Peanut” Webb Sentenced to 90 Months in Prison for Crack Cocaine ConspiracyRead the Press Release
KNOXVILLE, Tenn.- Robert Randall “Peanut” Webb, 62, of Newport, Tenn., was sentenced on Jan. 7, 2013, to serve 90 months in prison by the Honorable R. Leon Jordan, Senior U.S. District Judge. Webb pleaded guilty on May 1, 2012, to conspiring with others to distribute and possess with the intent to distribute 280 grams or more of crack cocaine. Upon his release from prison, he will remain on supervised release for five years. He was also ordered to pay a special assessment of $100.
Information presented at sentencing established that Webb used his home to conduct what was referred to as a convenience store for illegal drugs, from January 2011 until his arrest in February 2012. The court found that he managed the criminal activity which involved five or more participants including: James Robert Brickner, who previously received a sentence of 151 months in prison; Chelsea Shawntel Meigs, who previously received a sentence of 152 months in prison; and Margo Pondetta Gray, who previously received a sentence of 88 months in prison in the same indictment.
Testimony at sentencing established that Webb’s home served as a centralized location for 50+ drug addicts, who purchased prescription pain pills, heroin, crack cocaine, ecstasy, and morphine. Webb and many of his co-defendants injected illegal drugs intravenously during the period of the conspiracy. The illegal drugs were imported from Knoxville, Nashville, pain clinics in Florida and Georgia, and New York.
William C. Killian, U.S. Attorney, noted, “This investigation removed a fairly large scale drug operation from a residential neighborhood in Newport and demonstrated the effectiveness of local, state, and federal law enforcement agencies working together to improve the safety of Tennessee communities.”
The indictment and subsequent conviction of Webb was the result of an investigation conducted by the Tennessee Bureau of Investigation and the Newport Police Department. Assistant U.S. Attorney Helen Smith represented the United States at trial.
Habraham Enrique Guevara Sentenced to Seven Years in Prison for Meth ConspiracyRead the Press Release
GREENEVILLE, Tenn. - Habraham Enrique Guevara, 26, of Limestone, Tenn., was sentenced on January 8, 2013, to serve seven years in prison by the Honorable J. Ronnie Greer, U.S. District Judge. Guevara pleaded guilty on Jun. 5, 2012 to conspiring to distribute and possess with the intent to distribute 500 grams or more of methamphetamine. In a separate indictment, Guevara and his mother Rosalva Robledo were charged with document fraud and illegal harboring of aliens crimes.
Information at sentencing established that Guevara, his father, Jose Cruz Guevara, and uncle, Arnoldo Ayala Cazarez, conspired to bring four pounds of high quality Mexican methamphetamine from Oklahoma City to sell in upper East Tennessee. All four pounds were found at the Guevara family home in Limestone, Tenn. One pound was 92.9% pure and qualified as meth ice. Enrique Guevara served as the translator, lookout, and transporter for the deal, which took place on Jan. 31, 2012, and was taken down by law enforcement. The investigation resulted in the conviction of six individuals, all natives of Sinaloa, Mexico, who were illegally present in the United States.
U.S. Attorney William C. Killian said, “The quantity of methamphetamine found at Guevara’s home was the second-largest quantity prosecuted in federal court in the northeastern division of the Eastern District of Tennessee. Methamphetamine is a highly addictive drug and the presence of high quality Mexican methamphetamine in Washington County presented a danger to the safety of that community.”
The indictment and subsequent conviction of Guevara was the result of an investigation by the Federal Bureau of Investigation, Department of Homeland Security Investigations, Washington County Sheriff’s Office, and Second Judicial District Drug Task Force. Assistant United States Attorneys Donald Wayne Taylor and Helen Smith represented the United States in the prosecution.