Eastern District of Tennessee
Press releases recorded for this federal judicial district.
Kingsport Man Convicted at Trial on Firearm ChargeRead the Press Release
Greeneville, Tenn. – On April 3, 2024, following a two day trial in United States District Court in the Eastern District of Tennessee at Greeneville, before the Honorable J. Ronnie Greer, United States District Judge, a federal jury convicted Eric Eugene Robinson, 55, of Kingsport, Tennessee, of being a felon in possession of a firearm in violation of 18 U.S.C. §922(g)(3).
Sentencing is set for July 22, 2024, at 9:00 a.m., before Judge Greer in United States District Court in Greeneville, Tennessee. Robinson faces a sentence of a minimum of 15 years, up to life, in prison, a fine of up to $250,000, and a term of supervised release of up to five years.
The evidence and testimony presented during the trial showed that in early September of 2020, surveillance was conducted at a residence in Kingsport, which determined that Robinson, a convicted felon, was in possession of a firearm. A search warrant was executed at the residence by the Kingsport Police Department and, during the search, a 9mm pistol, with a loaded magazine, was located beneath a couch in the living room of the residence. An agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) testified that the firearm was manufactured in Brazil and imported into Bainbridge, Georgia, before ultimately arriving in Tennessee.
United States Attorney Francis M. Hamilton, III of the Eastern District of Tennessee made the announcement.
Kingsport Police Department officer Mike Slater, formerly a Task Force Officer assigned to the ATF led the investigation with assistance from agents with the Tennessee Bureau of Investigation and the ATF.
Assistant United States Attorney B. Todd Martin and Special Assistant United States Attorney AnCharlene Davis represented the United States at trial.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Jonathan Bash Sentenced to 21 Years Imprisonment for Distribution of A Fentanyl Analogue Resulting in DeathRead the Press Release
CHATTANOOGA, Tenn. – Today, Jonathan Bash, 25, of Chattanooga, Tennessee, was sentenced to 252 months’ imprisonment by the Honorable Curtis L. Collier, United States District Court Judge for the Eastern District of Tennessee at Chattanooga, after distributing para-fluorofentanyl, resulting in the overdose death of Charlotte Gallant. Following his incarceration, he will be on supervised release for five years.
As part of the plea agreement filed with the court, Bash pled guilty to distributing para-fluorofentanyl, a fentanyl analogue, that resulted in the death of 19-year-old Charlotte Gallant, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(C). According to the plea agreement, Bash sold a fentanyl analogue to a young man who shared it with his girlfriend, Ms. Gallant. According to filed court documents, Bash misrepresented the drug as ketamine, a commonly abused “club drug” that is often used for its perceived anesthetic and hallucinogenic effects. Both the young man to whom Bash sold the fentanyl analogue and Ms. Gallant overdosed. The young man suffered serious bodily injuries but ultimately survived the overdose. Paramedics were unable to revive Ms. Gallant, who died shortly after ingesting the drug.
“This is a tragic case. Using any kind of narcotic acquired on the streets or even from a friend, regardless of how the drug appears to be marketed, can unknowingly lead to the use of fentanyl, and the effects can be lethal,” said United States Attorney Francis M. Hamilton, III. “Our office will continue to prosecute these cases to bring justice to the community and the families of the victims, including Ms. Gallant and her family.”
“The U.S. Postal Inspection Service values our law enforcement partners and the U.S. Attorney’s office in the Eastern District of Tennessee who brought justice to this investigation,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “This case sends a clear message that the U.S. Postal Inspection Service along with our law enforcement partners will work tirelessly to protect the communities we serve by combating the flow of deadly drugs like fentanyl and holding drug traffickers accountable.”
“A 21-year sentence highlights the serious risks fentanyl poses and serves as a testament to HSI’s collaborative efforts in combating drug trafficking,” said HSI Nashville Special Agent in Charge Rana Saoud. “Fentanyl has a devastating impact on our communities and HSI will continue to fight alongside our law enforcement partners to disrupt and dismantle illicit narcotics organizations.”
“The most impactful investigations occur through meaningful collaboration and coordination with our local, state, and federal partners. The FBI is a proud federal partner of the U.S. Postal Inspection Service and Homeland Security Investigations, said Special Agent in Charge Joseph E. Carrico, of the Federal Bureau of Investigation.”
The criminal investigation was the result of an investigation by the United States Postal Inspection Service, Homeland Security Investigations, the Federal Bureau of Investigation, and the Chattanooga Police Department.
Assistant U.S. Attorneys James Brooks and Frank Clark represented the United States.
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Johnson City Man Sentenced to Two Years for Aggravated Identity Theft Related to Defrauding COVID-19 Economic Relief ProgramRead the Press Release
GREENEVILLE, Tenn. – On March 18, 2024, Ketan Ghutadaria, 53, of Johnson City, Tennessee was sentenced to 24 months in prison by the Honorable J. Ronnie Greer, United States District Judge, in the United States District Court for the Eastern District of Tennessee at Greeneville. Following his release from imprisonment, Ghutadaria will be on supervised release for one year, and he will be required to pay restitution in the amount of $100,300.
As part of a plea agreement filed with the court, Ghutadaria agreed to plead guilty to Aggravated Identity Theft, in violation of 18 U.S.C. § 1028A(a)(1), in connection with a scheme to defraud the Economic Injury Disaster Loan (“EIDL”) program, a federal program authorized to provide loans to small businesses experiencing substantial financial disruptions due to the COVID-19 pandemic as part of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act.
As set forth in the filed plea agreement, on March 31, 2020, Ghutadaria submitted an electronic application to the Small Business Administration (“SBA”) requesting an EIDL on behalf of a local trucking company. Ghutadaria used the business owner’s personal identification information to apply for the EIDL without the business owner’s knowledge or authority. The SBA approved the EIDL application based on the fraudulent information provided by Ghutadaria. On June 16, 2020, the SBA transferred $100,300 in EIDL funds into a bank account that Ghutadaria had access to. Between June 16, 2020, and September 2020, Ghutadaria spent approximately all the EIDL funds to pay off student loans, to pay off a motor vehicle loan, and on other personal items.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee and United States Secret Service (“USSS”) Resident Agent in Charge, Jason Brown, made the announcement.
The case was investigated by Special Agent Thomas Whitehead of the USSS.
Assistant United States Attorneys Mac Heavener and Ryan Blackwell represented the United States.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across the government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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DeShawn Whited Sentenced to 546 Months in Prison for Multiple Hobbs Act Robberies and CarjackingRead the Press Release
KNOXVILLE, Tenn. – On March 15, DeShawn Whited, 26, of Knoxville, was sentenced to 546 months imprisonment by the Honorable Katherine A. Crytzer, United States District Court Judge for the Eastern District of Tennessee at Knoxville. Following his incarceration, he will be on five years of supervised release.
On January 18, 2023, Whited was found guilty of four counts of Hobbs Act Robbery and one count of Attempted Hobbs Act Robbery, in violation of 18 U.S.C. § 1951, one count of carjacking, in violation of 18 U.S.C. § 2119, four counts of brandishing a firearm in furtherance of a crime of violence, in violation of 18 U.S.C. § 924(c)(1)(A), and one count of felon in possession of a firearm, in violation of 18 U.S.C. § 922(g)(1). According to evidence present at trial, Whited, a previously convicted felon, committed a series of armed robberies and an armed carjacking in the Knoxville community in January 2021.
The evidence presented at trial demonstrated that in January of 2021, Whited, disguised in a hoodie and bandana, robbed at gunpoint employees of EZ Stop at 8605 Walbrook Drive, Waffle House at 6230 Papermill Drive, Pilot Food Mart at 410 Merchants Drive, Wendy’s at 4407 Western Avenue, and Pilot Travel Center at 314 Lovell Road, all located in Knoxville. Whited also committed an armed carjacking near downtown Knoxville during the same timeframe. Victims from each of the incidents testified at the trial and the evidence included surveillance footage and cellphone location tracking information.
U.S. Attorney Francis M. Hamilton III, of the Eastern District of Tennessee, and Federal Bureau of Investigation (FBI) Special Agent Joseph E. Carrico, made the announcement.
The investigation was led by the FBI, Knoxville Division, the Knoxville Police Department, and the Knox County Sheriff’s Office.
Assistant U.S. Attorneys Alan S. Kirk and Brent N. Jones represented the United States.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Mooresburg Man Sentenced to 190 Months for Firearm OffenseRead the Press Release
GREENEVILLE, Tenn. – On March 14, 2024, George Wesley Short, 56, of Mooresburg, Tennessee, was sentenced to 190 months of imprisonment by the Honorable Clifton L. Corker, in the United States District Court for the Eastern District of Tennessee at Greeneville. During the sentencing proceeding, Judge Corker found Short to be an Armed Career Criminal based on his prior criminal history. Following his incarceration, Short will be on supervised release for five years. Judge Corker also ordered the forfeiture of the firearm seized during Short’s arrest.
Short pled guilty to a Superseding Indictment, which charged him with being a felon in possession of a firearm in violation of 18 U.S.C. § 922(g)(1). According to the stipulated facts, which were filed with the court, Short admitted that on December 29, 2021, a deputy with the Hawkins County Sheriff’s Department attempted a traffic stop on his vehicle; however, Short refused to stop and a vehicle pursuit ensued. After his vehicle broke down, Short attempted to flee on foot, but was apprehended. When law enforcement searched his vehicle, they located a firearm on the passenger-side floorboard of the vehicle. Short also admitted that he was previously convicted of a felony offense.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee and Special Agent in Charge, Marcus S. Watson, of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) made the announcement.
The criminal indictment was the result of an investigation by the Hawkins County Sheriff’s Department and the ATF. This investigation was led by ATF Special Agent Bryan Williams.
Assistant United States Attorneys B. Todd Martin and Luke McLauren represented the United States.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Mark Deakins Sentenced to Life Imprisonment for Sexual Abuse of Children and Producing Child Sexual Abuse MaterialRead the Press Release
CHATTANOOGA, Tenn. – Today, Mark Deakins, 64, of Chattanooga, Tennessee, was sentenced to life imprisonment by the Honorable Charles E. Atchley, Jr., United States District Court Judge for the Eastern District of Tennessee at Chattanooga, after many years of engaging in the sexual abuse of minors.
On May 11, 2023, Deakins was found guilty of criminal offenses in violation of 18 U.S.C. §§ 2421, 2251(a), 2252A(a)(5)(B) and (b)(2), and 2260A, following a trial in U.S. District Court. According to evidence presented at trial, Deakins repeatedly raped and sexually assaulted numerous pre-teen and teen boys over a period from 1995 to 2018 in his various residences and other locations in the Chattanooga area. He also transported a victim across state lines to engage in illegal sexual exploitation and abuse. Deakins committed these crimes while already on the Sex Offender Registry for past convictions.
The evidence presented at trial demonstrated how egregious the defendant’s conduct was. He hunted for the most weak and vulnerable. He preyed on young boys desperate for male role models in a vacuum created by absentee fathers. He often lured the boys with promises that he would mentor them about construction and tools. For over 20 years, the defendant recorded himself grooming, sexually assaulting, and raping them. The videos and images he made himself numbered in the thousands, and the defendant also possessed thousands of images of other child sexual abuse material from across the world which law enforcement agents discovered when they executed search warrants on his home and computers. The trial featured testimony from victims spanning multiple generations of his crimes.
“For nearly three decades, Deakins, a repeat sex offender, committed unspeakable crimes against pre-teen and teen boys,” said U.S. Attorney Francis M. Hamilton III. “Thanks to the tireless work of local, state, and federal law enforcement agencies and our prosecutors, this defendant will spend the rest of his life in prison. The U.S. Attorney’s Office remains committed to protecting our children through the prosecution of recidivist child predators to the fullest extent of the law.”
“Deakins’s offenses are heinous, leaving impacts on his victims that are immeasurable,” said Special Agent in Charge Joseph E. Carrico, of the Federal Bureau of Investigation (FBI). “Unfortunately, exploitation of youth is a very real and growing issue in our country. The FBI will continue to do everything in its power to ensure children, who are the most vulnerable members of our community, are protected.”
Law enforcement agencies participating in the joint investigation which led to the conviction of Mark Deakins included the FBI, United States Marshals Service, Red Bank Police Department, Tennessee Bureau of Investigation, Chattanooga Police Department, Hamilton County Sheriff’s Office, and Cumberland County Sheriff’s Office.
Assistant U.S. Attorneys James Brooks and Steven S. Neff represented the United States.
This case was investigated 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 United States Attorney’s 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.justice.gov/psc. For more information about internet safety education, click on the link for “Publications & Resources.”
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Former Loudon County Corrections Officer Sentenced to Prison for Using Excessive ForceRead the Press Release
KNOXVILLE, Tenn. – On March 4, 2024, Brian J. Phillips, 32, currently residing in Georgia, was sentenced to five months in prison by the Honorable Thomas A. Varlan, United States District Judge, in the United States District Court for the Eastern District of Tennessee at Knoxville.
As part of the plea agreement filed with the court, Phillips waived an indictment by a Federal Grand Jury and pleaded guilty to an Information charging him with one count of the use of excessive force under color of law, in violation of 18 U.S.C. § 242. Following his incarceration, Phillips will be on supervised release for a period of two years.
As set forth in filed court documents, at the time of the offense, Phillips was employed as a correctional officer by the Loudon County Sheriff’s Office. On January 25, 2021, Phillips was assigned to the Loudon County Jail to monitor a pod of detainees and inmates eating dinner, including detainee E.H. The defendant watched as E.H., who had already received one dinner tray, entered the line to get a second dinner tray, which was not permitted. The defendant started to approach E.H. When E.H. received a second dinner tray, defendant knocked the tray from E.H.’s hands, sending food into the air and onto the ground. The defendant grabbed E.H. by the wrist to take control of him. The defendant then wrapped his arms around E.H.’s waist and hip-slammed E.H. headfirst into the concrete floor, fracturing E.H.’s skull and rendering E.H. momentarily unconscious.
U.S. Attorney Francis M. Hamilton, III of the Eastern District of Tennessee and Special Agent in Charge, Joseph E. Carrico, of the Federal Bureau of Investigation (FBI), made the announcement.
This case is the result of an investigation conducted by the FBI.
Assistant United States Attorneys William A. Roach, Jr., and Jeremy S. Dykes prosecuted the case.
For more information about the Civil Rights Division and the Special Litigation Section, please visit www.justice.gov/crt/special-litigation-section. You can also report civil rights violations to the section by completing the complaint form available at www.civilrights.justice.gov.
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U.S. Attorney's Office Announces Participation in Justice Department's Nationwide Election Day ProgramRead the Press Release
KNOXVILLE, Tenn. – The United States Attorney’s Office announced today that Assistant United States Attorney (AUSA) Mac Heavener will lead the efforts of the Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming March 5, 2024, primary election. AUSA Heavener has been appointed to serve as the District Election Officer (DEO) for the Eastern District of Tennessee, and in that capacity is responsible for overseeing the Office’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.
The Department of Justice has an important role in deterring and combating discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying, and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).
In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA Heavener will be on duty in this District while the polls are open. He can be reached by the public at the following telephone numbers: (423) 823-5009 or (423) 218-6652.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (865) 544-0751.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/.
“Ensuring free and fair elections depends in large part on the assistance of the American electorate, stated U.S. Attorney Francis M. Hamilton III. “It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
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Joseph Daniel White Sentenced to 276 Months for Methamphetamine and Firearms ConvictionsRead the Press Release
GREENEVILLE, Tenn. – On March 4, 2024, Joseph Daniel White, 39, currently of Kingsport, Tennessee, was sentenced to 276 months by the Honorable J. Ronnie Greer, in the United States District Court for the Eastern District of Tennessee at Greeneville.
As part of the plea agreement filed with the court, White agreed to plead guilty to Possession of 50 Grams or More of Methamphetamine with Intent to Distribute, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(A) and Brandishing a Firearm in Furtherance of a Drug Trafficking Offense, in violation of 18 U.S.C. § 924(c)(1)(A)(ii). Following his incarceration, White will be on eight years of supervised release. White forfeited $23,668 in cash, as well as seven firearms and ammunition.
According to the plea agreement and evidence presented at the sentencing hearing, officers with the Bristol Tennessee Police Department responded to The Pinnacle shopping area on December 23, 2021. Upon arrival, officers encountered White, who appeared intoxicated and smelled of marijuana. During a search of White and his vehicle, officers located three bags containing 309 grams of methamphetamine, four loaded firearms, $13,861 in cash, drug paraphernalia, psilocybin mushrooms, and various narcotic pills.
On January 10, 2022, law enforcement received a tip that White, who had outstanding arrest warrants, was at a convenience store in Blountville, TN. When law enforcement went to arrest White, he displayed a firearm. Officers were able to grab the firearm and White was arrested. Officers recovered $9,807 in cash, three firearms, heroin, marijuana, and 352 grams of methamphetamine from the defendant.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee, and Special Agent in Charge, Marcus Watson of the Bureau of Alcohol, Tobacco, Firearms and Explosives made the announcement.
The criminal indictment was the result of an investigation by the Bristol Tennessee Police Department and the ATF. This investigation was led by ATF Special Agent Jamie Jenkins.
Assistant United States Attorney B. Todd Martin 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 face.
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Randa Allison Sentenced to 14 Months in Prison for COVID-19 Unemployment Insurance Fraud SchemeRead the Press Release
CHATTANOOGA, Tenn. - On February 28, 2024, Randa Allison, 29, of Stevenson, Alabama, was sentenced to 14 months’ imprisonment after being convicted of mail fraud involving a scheme to defraud COVID-19 unemployment programs in several states. Allison was sentenced by the Honorable Curtis L. Collier, in the United States District Court for the Eastern District of Tennessee at Chattanooga. Following her incarceration, she will be on five years of supervised release. In addition, she was ordered to pay $120,025 in restitution to the Pennsylvania and Alabama Departments of Labor, and to forfeit to the United States $100,225 as part of a money judgment.
As part of the filed plea agreement with the court, Allison pled guilty to Conspiracy to Commit Wire Fraud and Mail Fraud, in violation of Title 18, United States Code, Section 1349.
According to court documents, from June 2020 through June 2021, Allison conspired with others to devise a scheme in which she defrauded the United States government and the governments of Tennessee, Alabama, Pennsylvania, and California to obtain money from the states’ COVID relief programs in the form of unemployment insurance proceeds funded by the United States government. Specifically, Allison acquired personal information from others and used it to fraudulently make mass online applications for money earmarked by the states to provide unemployment insurance relief for those affected by the national pandemic. She falsely claimed in the applications that the individuals whose personal information was reflected on the applications worked in those states. The states then mailed debit cards to addresses in the Eastern District of Tennessee, and Allison would receive a percentage of the payout of the fraudulent claim. The defendant was personally responsible for the fraudulent distribution of over $120,000 of unemployment protection insurance funds. The scheme itself involved the fraudulent distribution of over $550,000 in unemployment protection insurance funds.
“As if the pandemic were not traumatic enough for our communities, fraudsters like the defendant callously took advantage of the crisis to obtain a financial windfall,” said United States Attorney Francis M. Hamilton, III. “We will continue to work with our partners at every level of law enforcement to pursue and prosecute criminals who used the crisis for fraudulent personal gain.”
“Randa Faye Allison and her co-conspirators filed fraudulent Unemployment Insurance (UI) claims with multiple state workforce agencies, enriching themselves by defrauding a program intended to assist struggling American workers during an unprecedented global pandemic,” said Mathew Broadhurst, Special Agent-in-Charge, Southeast Region, U.S. Department of Labor, Office of Inspector General. “We will continue to work with our law enforcement partners to protect the integrity of the UI system from those who exploit these benefit programs.”
“The FBI takes very seriously our responsibility to investigate and pursue those who commit fraud for personal gain. Along with our federal, state, and local law enforcement partners, we will continue to aggressively investigate those who lined their pockets with money intended to help struggling businesses and workers as a result of the COVID pandemic,” said Special Agent in Charge Joseph E. Carrico, of the Federal Bureau of Investigation (FBI).
Assistant United States Attorney Steven Neff represents the United States.
The investigation was conducted by the Department of Labor Office of Inspector General and the FBI as part of the Smoky Mountains Financial Crimes Task Force.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across the government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
###15 Charged with Fentanyl, Methamphetamine, Cocaine, Firearms, and Money Laundering OffensesRead the Press Release
KNOXVILLE, Tenn. – On February 21, 2024, a federal grand jury in Knoxville, Tennessee, returned a 19-count indictment against 15 defendants—Todd M. Evans, 31, and Joshua M. Vanriette, 38, both of Pontiac, MI; Gary L. Shadden, 70, Henri L. Ewing, 34, James M. Pass, 56, and Traythan W. Edwards, 23, all of Rockwood, TN; Robert S. Fugate, 53, and Charlotte A. Brown, 53, both of Spring City, TN; Amber B. Jackson, 33, Nicholas J. Eskridge, 46, Christopher C. Gilmore, 52, and Kristy L. Murray, all of Harriman, TN; and Bobby L. Robinette, 44, Liberty Warfield, 40, and Misty Walden, 46, all of Kingston, TN.
According to the indictment, all defendants are charged with conspiracy to distribute fentanyl, multiple defendants are charged with conspiracy to distribute methamphetamine and cocaine as well as other fentanyl, methamphetamine, and cocaine offenses, Evans, Vanriette, Ewing, and Pass are each charged with firearms offenses, and Evans, Vanriette, and Jackson are charged in a conspiracy to commit money laundering.
Jackson, Walden, Shadden, Brown, Gilmore, Edwards, and Warfield had their initial appearances on February 22, 2024, before the Honorable Judge Jill E. McCook, United States Magistrate Judge, and all entered pleas of not guilty. The remaining defendants will have their initial appearances at a later date. This case has been set for trial on April 30, 2024, before the Honorable Katherine A. Crytzer, United States District Judge, in the United States District Court in Knoxville.
If convicted, Evans, Vanriette, and Ewing each face a mandatory minimum term of 20 years and up to life in prison and other penalties; Jackson, Murray, and Pass each face a mandatory minimum of 15 years and up to life in prison and other penalties; Eskridge and Robinette each face a mandatory minimum of 10 years and up to life in prison and other penalties; Shadden, Walden, and Gilmore each face a mandatory minimum term of 5 years and up to 40 years in prison and other penalties; and Edwards and Warfield each face up to 20 years in prison and other penalties.
U.S. Attorney Francis M. Hamilton, III, of the Eastern District of Tennessee; Federal Bureau of Investigation (FBI) Special Agent in Charge Joseph E. Carrico; and Special Agent in Charge Marcus Watson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), made the announcement.
This indictment is the result of an investigation led by the FBI, and the ATF, with significant support from the Roane County Sheriff’s Office, Tennessee Bureau of Investigation, Harriman Police Department, Rhea County Sheriff’s Office, Rockwood Police Department, as well as other partnering agencies to include the Appalachia High Intensity Drug Trafficking Area Task Force.
Assistant U.S. Attorney Brent N. Jones will represent the United States.
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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.
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Nigerian Man Sentenced to Prison for Covid-19 Unemployment Insurance Benefits ScamRead the Press Release
KNOXVILLE, Tenn. – On February 21, 2024, Valentine O. Odije, 35 years old, a Nigerian citizen currently residing in Georgia, was sentenced to 21 months in prison by the Honorable Thomas A. Varlan, in the United States District Court for the Eastern District of Tennessee at Knoxville.
Odije pleaded guilty to conspiracy to use an unauthorized access device related to his and his coconspirators’ unlawful use of debit cards funded with Covid-19 unemployment insurance (“UI”) benefits in violation of 18 U.S.C. § 1029(b)(2). Following his incarceration, he will be on supervised release for a period of three years. In addition, he was ordered to pay restitution in the amount of $661,082.19 and to forfeit $86,651.68 in cash.
As set forth in the written plea agreement filed with the court, Odije was recruited into an ongoing scheme by individuals who were filing fraudulent UI benefits claims during the pandemic. The fraudulent claims resulted in UI benefits being loaded onto debit cards that Odije possessed. Odije’s role in the scheme was to use those debit cards to withdraw cash and purchase money orders. Odije knew the debit cards were funded with unlawfully obtained UI benefits. Odije recruited others to help him access the UI benefits on the cards, selecting the cards for them to use and instructing them how to withdraw cash and purchase money orders.
On July 17, 2020, Odije and his coconspirators used four debit cards at a retail store in the Eastern District of Tennessee to collectively withdraw $23,527.99 in UI benefits. When Odije and his coconspirators were arrested that day, Odije possessed 315 debit cards, 204 of which were funded with a total of $661,082.19 in unlawfully obtained UI benefits.
Two of Odije’s coconspirators, Dianne M. Coffie and Ayeesha Shah, previously pleaded guilty in the Eastern District of Tennessee to conducting unlawful transactions with an access device. Coffie was sentenced to three years’ probation and ordered to pay $90,000 in restitution. Shah was sentenced to two years’ probation and ordered to pay $40,000 in restitution.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee; Resident Agent in Charge, Jason Brown, of the United States Secret Service; and Special Agent in Charge, Matthew Broadhurst, of the United States Department of Labor, Office of Inspector General, made the announcement.
This case is the result of an investigation conducted by the United States Secret Service and the U.S. Department of Labor, Office of Inspector General.
William A. Roach, Jr., an Assistant United States Attorney who serves as the Eastern District of Tennessee’s Coronavirus Fraud Coordinator, prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Pennsylvania Man Arrested for Stalking and Possession of A SilencerRead the Press Release
KNOXVILLE, Tenn. – On February 16, 2024, Michael Charles Hoffpowier, 46, of Middlebury, Pennsylvania, was charged via federal criminal complaint with stalking in violation of Title 18, United States Code, Section 2261A, and Possession of a Silencer in violation of Title 26, United States Code, Section 5861(d). The complaint was issued by the Honorable Debra C. Poplin, United States Magistrate Judge for the Eastern District of Tennessee. If convicted, Hoffpowier could face imprisonment of up to 10 years and other penalties.
According to documents filed with the Court, it is alleged that over the course of a few months, Hoffpowier tracked the alleged victim from Pennsylvania, to Texas, and finally to Knoxville, Tennessee. On February 12, 2024, the victim disclosed to law enforcement that Hoffpowier attempted to contact him/her through his/her employer by using a false name but using his actual phone number. The victim’s employer contacted Hoffpowier and cancelled his appointment. Hoffpowier responded by saying, “I’ll see you at 9:00.” The employer contacted the police. On February 14, 2024, witnesses watched Hoffpowier drive around the Knox County business. Knox County Deputies located Hoffpowier in a nearby parking lot minutes later. Following Miranda warnings, Hoffpowier admitted to making the appointment under a false name to surprise the victim. With Hoffpowier’s consent, Deputies found text messages on his phone from the victim instructing him to cease contact with him/her. Deputies arrested Hoffpowier, searched the car he was in, and found two firearms, one with an attached silencer, two sets of binoculars, and a key to the victim’s car.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee, and ATF Resident Agent in Charge, Keith Jordan, made the announcement.
This prosecution is the result of an ongoing investigation by the ATF and the Knox County Sheriff’s Office, with support from the Knox County District Attorney General’s Office.
Assistant United States Attorney Miriam Johnson will represent the United States.
Members of the public are reminded that a complaint constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
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 face.
If you are in immediate danger, call 911. Contact your local police department to report stalking and stalking-related incidents and/or threats. Immediate and confidential support is available 24/7 through the National Domestic Violence Hotline by visiting thehotline.org, calling 1-800-799-7233 (TTY 1-800-787-3224), or texting “START” to 88788. You can also call the National Center for Victims of Crime hotline at 855-4-VICTIM (855-484-2846) or the Strong Hearts Native Helpline at 844-762-8483.
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Dock Edward Hoilman Sentenced to 151 Months for Distribution and Possession of Child PornographyRead the Press Release
KNOXVILLE, Tenn. – On February 9, 2024, Dock Edward Hoilman, 64, currently of Kingston, Tennessee, was sentenced to 151 months by the Honorable Katherine A. Crytzer, in the United States District Court for the Eastern District of Tennessee at Knoxville.
As part of the plea agreement filed with the court, Hoilman agreed to plead guilty to an indictment charging him with, one count of distribution of child pornography in violation of 18 U.S.C. § 2252A(a)(2); and one count of possession of child pornography in violation of 18 U.S.C. 2252A(a)(5)(B) and 2252A(b)(2). Following his incarceration, Holliman will be on ten years’ supervised release, and he will be required to register with state sex offender registries and comply with special sex offender conditions.
According to the filed plea agreement, on May 27, 2022, Hoilman, a former Y-12 IT Systems Administrator with top secret clearance, distributed child pornography videos through the internet to unknown persons. On August 24, 2022, a search warrant was executed on his home. Hoilman was found to be in possession of 14 images and 25 videos of child pornography.
U.S. Attorney Francis M. Hamilton, III of the Eastern District of Tennessee; Inspector General , Teri L. Donaldson, United States Department of Energy, Office of Inspector General (DOE-OIG); and Special Agent in Charge Rana Saoud, of the Department of Homeland Security, Homeland Security Investigations (HSI) made the announcement.
The criminal indictment was the result of an investigation by the DOE-OIG, HSI and 9th District Attorney General’s Office. This investigation was led by DOE-OIG Special Agent Paul B. Gilbride and HSI Task Force Officer Cortney Duggar.
Assistant United States Attorney Jennifer Kolman 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 United States Attorney’s 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.justice.gov/psc.
For more information about internet safety education, please visit www.justice.gov/psc/resources.html and click on the tab “resources.”
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U.S. Attorney's Office Collects $12,352,268 in Criminal and Civil Actions and $1,610,245 in Asset Forfeiture Actions in Fiscal Year 2023Read the Press Release
KNOXVILLE, Tenn. — U.S. Attorney Francis M. Hamilton III announced today that the Eastern District of Tennessee collected $12,352,268 in criminal and civil actions in Fiscal Year 2023. Of this amount, $3,130,283 was collected in criminal actions and $9,221,985 was collected in civil actions. Additionally, the U.S. Attorney’s Office for the Eastern District of Tennessee, working with partner agencies, collected $1,610,245 in asset forfeiture actions in Fiscal Year 2023.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s Office for the Eastern District of Tennessee, working with partner agencies, collected $11,345 in asset forfeiture actions in Fiscal Year 2023 for victim compensation. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
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Oraine Christie Convicted of Drug Trafficking and Firearms ChargesRead the Press Release
KNOXVILLE, Tenn. – On January 29, following a three-day trial in United States District Court, Knoxville, Tennessee, a jury convicted Oraine Christie, 44, of Massachusetts, of drug trafficking and firearms charges relating to a traffic stop conducted by the Knoxville Police Department’s drug interdiction team, on December 1, 2021.
Christie will be sentenced by the Honorable Judge Katherine C. Crytzer at a later date. Christie faces a mandatory minimum sentence of 15 years and a maximum sentence of life, fines, and a term of supervised release of at least five years.
The evidence presented at trial showed that Oraine Christie, the driver of a Chevy Trailblazer, and co-conspirator Shemar Newland, the passenger, were transporting 3.5 kilograms of crystal methamphetamine and six firearms, including a stolen Smith & Wesson revolver and a PA-15 assault rifle when they were stopped after committing a traffic violation on Highway 640. An investigation revealed that the pair were heading back to Atlanta with the guns and drugs after failing to sell the drugs in West Virginia, as initially planned. Testimony at trial revealed that Newland obtained the drugs from an individual in Atlanta and Christie conspired with Newland to sell the drugs to Christie’s associate in West Virginia.
Newland pleaded guilty on July 14, 2022, and his sentencing is set for February 8, 2023, before Judge Crytzer, in the United States District Court in Knoxville, Tennessee.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee made the announcement.
Law enforcement agencies participating in the joint investigation which led to the indictment and subsequent convictions included the Knoxville Police Department, and the Drug Enforcement Administration.
Assistant U.S. Attorneys Anne-Marie Svolto and Brian Samuelson represented the United States at trial.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community face.
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New York Man Found Guilty of Federal Firearms ChargeRead the Press Release
GREENEVILLE, Tenn. – Following a trial in the United States District Court in Greeneville, Jatally Williams, 33, of Utica, New York, was found guilty of possessing a firearm while being a prohibited person, specifically a person having been convicted of a crime punishable by more than one year in prison.
Sentencing is set for May 16, 2024, before the Honorable Clifton Corker, in United States District Court in Greeneville, Tennessee. Williams faces a potential fifteen-year minimum mandatory and a maximum life sentence in prison pursuant to the Armed Career Criminal Act (ACCA).
Evidence at trial showed that on February 4, 2022, Williams was a passenger in a vehicle pulled over by law enforcement officers on Roan Street in Johnson City. During the traffic stop, Williams admitted that he possessed a gun and officers located a 9mm pistol in Williams’ waistband. Williams’ criminal record includes prior felony convictions for robbery, burglary, and a felony drug offense.
U.S. Attorney Francis M. Hamilton, III of the Eastern District of Tennessee, made the announcement.
The Johnson City Police Department led the investigation that resulted in the indictment and subsequent conviction of Williams.
Assistant U.S. Attorney Tom McCauley and Ryan Blackwell represented the United States at trial.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community face.
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Dana Adkins Sentenced to 18 Months in Prison for COVID-19 Unemployment Insurance Fraud SchemeRead the Press Release
CHATTANOOGA, Tenn. - On January 25, 2024, Dana Adkins, 45, of Chattanooga, Tennessee, was sentenced to 18 months’ imprisonment after being convicted of mail fraud involving a scheme to defraud COVID-19 unemployment programs in several states. Adkins was sentenced by the Honorable Charles E. Atchley, Jr., in the United States District Court for the Eastern District of Tennessee at Chattanooga. Following her incarceration, she will be on three years of supervised release. In addition, she was ordered to pay $150,804 in restitution, and to forfeit to the United States over $150,000 as part of a money judgment.
As part of the filed plea agreement with the court, Adkins waived indictment by a Grand Jury and pleaded guilty to an information charging her with Mail Fraud, in violation of Title 18, United States Code, Section 1341.
According to court documents, from June 2020 through January 2021, Adkins conspired with others to devise a scheme in which she defrauded the United States government and the governments of Tennessee, Alabama, Pennsylvania, and California to obtain money from the states’ COVID relief programs in the form of unemployment insurance proceeds funded by the United States government. Specifically, Adkins acquired personal information from others and used it to fraudulently make mass online applications for money earmarked by the states to provide unemployment insurance relief for those affected by the national pandemic. She falsely claimed in the applications that the individuals whose personal information was reflected on the applications worked in those states. The states then mailed debit cards to addresses in the Eastern District of Tennessee, and Adkins would receive a percentage of the payout of the fraudulent claim. The defendant was personally responsible for the fraudulent distribution of over $150,000 of unemployment protection insurance funds. The scheme itself involved the fraudulent distribution of over $550,000 in unemployment protection insurance funds. Adkins is the fourth defendant to be convicted in the scheme.
“We remain committed to working with our law enforcement partners to identify and prosecute those who callously undermine the United States government’s efforts to help hard working Americans and small business owners with COVID unemployment relief funds,” said United States Attorney Francis M. Hamilton, III. “Thieves and fraudsters who take these funds under false pretenses are not only stealing from American taxpayers, generally, but also specifically from their neighbors and members of the communities who have businesses that are struggling in the wake of massive losses due to the pandemic.”
“Dana Adkins defrauded the State of Pennsylvania by filing fraudulent unemployment insurance claims. Adkins stole benefits intended to assist American workers who became unemployed due to the COVID-19 pandemic,” said Mathew Broadhurst, Special Agent-in-Charge, Southeast Region, U.S. Department of Labor, Office of Inspector General. “We will continue to work with our law enforcement partners to safeguard unemployment insurance programs from those who seek to exploit them.”
“The FBI along with our federal and state law enforcement partners will relentlessly pursue those who defraud the government and hold accountable those who use illegal means and criminal behavior to take advantage of others,” said FBI Special Agent in Charge Joseph E. Carrico.
Assistant United States Attorney Steven Neff represents the United States.
The investigation was conducted by the Department of Labor Office of Inspector General and the FBI as part of the Smoky Mountains Financial Crimes Task Force.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across the government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Timothy Carver Sentenced to 460 Months in Prison for Child Pornography OffensesRead the Press Release
GREENEVILLE, Tenn. – On January 25, 2023, Timothy Carver, 54, of Jonesborough, Tennessee, was sentenced to 460 months in prison by the Honorable Clifton L. Corker, United States District Judge, in the United States District Court for the Eastern District of Tennessee at Greeneville.
Carver was convicted following a jury trial in April 2023 of knowingly producing child pornography, in violation of 18 U.S.C. § 2251(a); knowingly distributing child pornography, in violation of 18 U.S.C. § 2252A(a)(2)(A); and knowingly possessing child pornography involving a child less than 12 years of age, in violation of 18 U.S.C. § 2252A(a)(5)(B).
Evidence presented at trial proved the defendant videoed and photographed himself engaged in sexual acts with a two-year-old. The proof further showed that he distributed a child pornography video to an FBI Online Covert Agent using a messaging application. FBI agents searched the defendant’s cellular phone and discovered 1,735 photo and video files containing child pornography.
Carver will serve 460 months in prison and will also be subject to lifetime supervision and placement on the sex offender registry.
U.S. Attorney Francis M. Hamilton, III of the Eastern District of Tennessee and Federal Bureau of Investigation (“FBI”) Special Agent in Charge Joseph E. Carrico, Federal Bureau of Investigation, made the announcement.
The FBI, including agents from the Johnson City, Tennessee, and Pittsburgh Pennsylvania Field Offices, led the investigation that resulted in the indictment and subsequent conviction of Carver. The Washington County Sheriff’s Office also provided assistance in the investigation.
Assistant U.S. Attorneys Emily Swecker and Thomas McCauley represented the United States.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about PSC, please visit www.projectsafechildhood.gov.
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Surgical Sales Representatives Plead Guilty to Conspiracy to Commit Bribery and Honest Services Wire Fraud Against the Quillen VA Medical CenterRead the Press Release
GRENNEVILLE, Tenn. – On January 25, 2024, Eric S. Smith, 54, currently of Bristol, Virginia, and Landon Chester, 36, currently of Johnson City, Tennessee, entered guilty pleas to conspiracy to commit bribery and honest services wire fraud before the Honorable Clifton L. Corker. Smith’s sentencing has been set for May 30, 2024, at 11 a.m., and Chester’s sentencing has been set for May 30, 2024, at 1:30 p.m., in the United States District Court at Greeneville.
Smith and Chester both face a term of up to 5 years in Federal prison, $250,000 in fines, and supervised release of three years. Under their written plea agreements, both must also pay restitution and have agreed to forfeit seized bank accounts totaling over $156,000.
As part of written plea agreements, Smith and Chester waived indictment by a Federal Grand Jury and agreed to plead guilty to an information. According to the plea agreements, both Smith and Chester worked as a surgical sales representative for an independent distributor of a nationwide orthopedic company that manufactured replacement joints and products used during surgeries in which those joints were implanted. Both routinely sold products to the James H. Quillen VA Medical Center in Mountain Home, Tennessee. In June 2018, Chester and Smith formed a separate company and began selling their own acquired inventory to the VA at inflated prices or when not necessary, resulting in losses to the VA in excess of $850,000. Chester and Smith agreed that they conspired and paid cash bribes of more than $80,000 to two VA Medical Center employees (indicted separately) for their agreement to commit, collude, and aid in the fraud against the VA.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee; Kim Lampkins, Special Agent-in-Charge, Mid-Atlantic Field Office, VA Office of the Inspector General; Elisa Pellegrini, Special Agent-in-Charge, GSA Office of the Inspector General, Mid-Atlantic Division; and Donald “Trey” Eakins, Special Agent-in-Charge, Internal Revenue Service – Criminal Investigation, made the announcement.
This prosecution is the result of an ongoing investigation by the VA Office of the Inspector General, GSA Office of the Inspector General, and the Internal Revenue Service – Criminal Investigation.
Mac D. Heavener, III, Assistant United States Attorney represented the United States.
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Nigel John-Ross Henry Sentenced to 75 Months in Prison for Conspiracy to Commit Wire and Mail Fraud and Identity Theft in an Elder Sweepstakes ScamRead the Press Release
KNOXVILLE, Tenn. – On January 10, 2024, Nigel John-Ross Henry, 38, a Jamaica citizen, was sentenced by the Honorable Thomas A. Varlan, in the United States District Court for the Eastern District of Tennessee at Knoxville.
As part of the plea agreement filed with the court, Henry agreed to plead guilty to an indictment charging him with, one count of conspiracy to commit wire and mail fraud in violation of 18 U.S.C. §§ 1349, 1341, and 1343; and one count of aggravated identity theft in violation of 18 U.S.C. §1028A. Henry was sentenced to 75 months in prison, followed by five years’ supervised release. Henry has been ordered to pay restitution in the amount of $331,569.39, jointly, and severally with co-conspirators, Diedre Rochelle Weir and Diedria Roseanne Faulkner, who were both sentenced to 21 months imprisonment in December 2023.
According to filed court documents, the conspiracy was a sweepstakes scam that targeted the elderly. Elderly victims from across the United States were targeted by telephone being told they had won a large sum of money even though they had never entered the lottery. In order to claim the prize money, victims were told they had to pay taxes on the winnings first. If the victim fell for the scam, a co-conspirator continued to call the victim for more “tax” money. The number of calls to the victim became more frequent. If needed, the co-conspirator pretended to become the victim’s paramour, making the continued requests for additional “tax” money more palatable. The scam did not stop until the victim had no more money, or the victim figured out s/he was being deceived. Sometimes the conspiracy was able to fraudulently obtain Personal Identity Information (PII) from the victim. Armed with the PII, the conspiracy took over the victim’s identity and bilked the victim’s financial accounts directly. There were instances when a victim had been bilked of their life savings and that the victim was brought into the conspiracy as a “mule” to receive “tax” money from other victims. The “mule” would be told where and how to send the money minus a nominal fee for his/her trouble. Ultimately, the stolen money was sent to Henry, who took his cut and wired the rest to unknown conspirators in Jamaica.
U.S. Attorney Francis M. Hamilton, III of the Eastern District of Tennessee, and Resident Agent in Charge, Jason Brown, of the United States Secret Service, made the announcement.
The criminal indictment was the result of an investigation by the United States Secret Service. This investigation was led by USSS Senior Special Agent Lesley Cochran.
Assistant United States Attorney Jennifer Kolman represented the United States.
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Former State Employee and Her Husband Plead Guilty to Conspiracy to Unlawfully Produce Tennessee Driver's LicenceRead the Press Release
KNOXVILLE, Tenn. – On December 21, 2023, Cheryl Huff, 49, of Knoxville, and Mario Paz-Mejia, 50, of Knoxville, who are married, entered guilty pleas in the United States District Court for the Eastern District of Tennessee to one count of conspiracy to produce, without lawful authority, identification documents or false identification documents. Sentencing has been set for May 24, 2024, before the Honorable Katherine A. Crytzer in the United States District Court at Knoxville.
Huff and Paz-Mejia each face a term of up to 15 years in Federal prison, $250,000 in fines, and supervised release of three years.
As part of their written plea agreements filed with the court on March 1, 2023, Huff and Paz-Mejia waived an indictment by a Federal Grand Jury and agreed to plead guilty for their role in a conspiracy to produce hundreds of false Tennessee driver’s licenses and identification cards for individuals who were not qualified under Tennessee law to receive them.
According to the plea agreements filed with the court, Huff was a District Manager for the Tennessee Department of Safety and Homeland Security (TDSHS), which issues Tennessee driver’s licenses and identification cards at various Driver Service Centers (DSC) across Tennessee. Huff managed and supervised DSC employees in the Greater Knoxville area and had authority to issue driver’s licenses and application cards.
Paz-Mejia recruited individuals who were neither citizens of the United States nor residents of Tennessee who wanted to acquire a Tennessee driver’s license or identification card. Using his association with Huff, Paz-Mejia represented to his customers that, in return for $2,500, Paz-Mejia could obtain for them a Tennessee driver’s license or identification card. Paz-Mejia also assisted his customers in obtaining false citizenship and residency documents—two requirements to obtain a Tennessee driver’s license—including fraudulent lease agreements to establish proof of Tennessee residency, and false birth certificates, Social Security cards, and driver’s licenses from other states and U.S. territories to establish proof of citizenship or legal residency in the United States.
Huff knew, or deliberately ignored a high probability, that Paz-Mejia was helping his customers obtain false citizenship and residency documents and that Paz-Mejia charged his customers money to obtain a Tennessee driver’s license or identification card.
Huff used her access to TDSHS’s internal software to confirm that the names and information on the false citizenship and residency documents used by Paz-Mejia’s customers could be used to obtain a Tennessee driver’s license or identification card. For example, on June 23, 2021, Paz-Mejia texted Huff the name, date of birth, and personal information used on false identification documents, asking Huff to “check that please.” Huff responded, “All of these are not on file. They’re good.”
After Paz-Mejia’s customers acquired false citizenship and residency documents, Paz-Mejia arranged to meet them at a Knoxville-area DSC before business hours. With Huff’s assistance, Paz-Mejia escorted his customers into DSCs before business hours, including through a backdoor employee-only entrance. Once Paz-Mejia and his customers were inside, Huff initiated driver’s license applications for the customers using TDSHS software. Huff also instructed subordinate DSC employees to complete applications and issue driver’s licenses to many of Paz-Mejia’s customers.
“Abusing a position of public trust to commit any federal crime, including conspiracy to unlawfully produce false identification documents, undermines the public’s confidence in government functions and creates a serious security risk,” said United States Attorney for the Eastern District of Tennessee Francis M. Hamilton III. “Our office will aggressively prosecute government employees who abuse their trusted employment positions for personal gain.”
“I am deeply disappointed in the actions of a former Tennessee Driver Services District Manager and others who betrayed the trust and tarnished the reputation of the Tennessee Department of Safety and Homeland Security,” said Tennessee Department of Safety and Homeland Security Commissioner Jeff Long. “I want to thank the departmental employees for having the courage to alert and cooperate with the Tennessee Highway Patrol’s Criminal Investigation Division on this case involving one of their co-workers. Our agency cooperates and works closely with federal law enforcement partners and the United States Attorney’s Office to pursue justice to the fullest extent of the law.”
This prosecution is the result of an ongoing investigation by the Tennessee Highway Patrol’s Criminal Investigation Division, the United States Department of Homeland Security’s Homeland Security Investigations, the United States Postal Inspection Service, and the United States Secret Service.
William A. Roach, Jr., Assistant United States Attorney, represented the United States.
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Justice Department Secures Agreement with Chattanooga, Tennessee, to Resolve Disability-Based Discrimination LawsuitRead the Press Release
The Justice Department announced today that the city of Chattanooga, Tennessee, has agreed to pay $32,600 to resolve allegations that it violated the Fair Housing Act (FHA) and the Americans with Disabilities Act (ADA) by refusing to allow four people with mental health disabilities to reside together in a single-family home in the city under the same terms and conditions as residents without disabilities.
The department’s lawsuit alleged that the city unnecessarily required Quality Lifestyle Service Inc. (Quality Lifestyle), a nonprofit housing provider, to apply for a special use permit to manage a four-person transitional home in the city’s R-1 residential zoning district. Under the city’s own zoning ordinance and state law, the home was an allowed use in that neighborhood. The lawsuit further alleged that the city denied the permit without any legitimate reason.
“Federal civil rights laws protect the rights of people with disabilities to live in the housing of their choice,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This agreement sends a clear message that the Justice Department will vigorously protect the rights of people with disabilities. All Americans, regardless of disability, have a right to fair housing in their communities.”
“The U.S. Attorney’s Office commends the complainant for sharing their experience to improve housing opportunities for persons with disabilities,” said U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee. “Further, we commend the city of Chattanooga for cooperating in the investigation and working to reach a resolution that promotes accessible housing in East Tennessee.”
“Preventing persons with disabilities from accessing housing through discriminatory housing policies has no place in our society,” said Principal Deputy Assistant Secretary Demetria L. McCain of the Department of Housing and Urban Development (HUD)’s Office of Fair Housing and Equal Opportunity. “This agreement sends a strong message that HUD and the Justice Department will continue to work together to enforce our nation’s fair housing laws.”
Under the agreement, which was approved by the U.S. District Court for the Eastern District of Tennessee, the city agreed to amend its zoning ordinance to ensure that persons with disabilities are not illegally denied housing opportunities or excluded from participation in the city’s services or programs. The city also agreed to pay a civil penalty to the government of $5,000, to train officials and employees about their fair-housing obligations under federal law, designate a fair-housing compliance officer and file periodic reports with the department.
The case began when Quality Lifestyle filed a complaint with HUD. HUD referred the complaint to the Justice Department, which conducted an investigation.
The Justice Department’s Civil Rights Division enforces the FHA, which prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status. The division also enforces the ADA, which protects persons with disabilities’ access to state and local governments’ programs and services.
More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals may report disability discrimination or other forms of housing discrimination by calling the Justice Department at 1-833-591-0291 or submitting a report online at www.civilrights.justice.gov. Individuals also may report discrimination by contacting HUD at 1-800-669-9777, or by filing a complaint online.
consent_decree_chattanooga_entered_2023-12-08.pdfKentucky Woman Sentenced to Two Years for Forgery of Federal Judge's SignatureRead the Press Release
KNOXVILLE, Tenn. – On December 8, 2023, Sunshine Ann Miller, 44, currently of Whitley City, Kentucky, was sentenced to two years imprisonment by the Honorable Katheryn A. Crytzer, in the United States District Court for the Eastern District of Tennessee at Knoxville.
As part of the plea agreement filed with the court, Miller agreed to plead guilty to an indictment charging her with forging the signature of a United States District Judge in violation of 18 U.S.C. § 505. Following her imprisonment, she will be on supervised release for two years.
According to court filed documents, in August 2019, Miller sought to extort money from an elderly, bedridden resident of Scott County, Tennessee. While serving as the victim’s caregiver, Miller provided him with a counterfeit federal warrant, upon which she had forged the signature of Pamela L. Reeves. Prior to her passing on September 10, 2020, Reeves had been a United States District Judge for the Eastern District of Tennessee.
Miller’s conviction was the result of an investigation by the Tennessee Highway Patrol, U.S. Secret Service, and the Tennessee Bureau of Investigation. The investigation was led by Secret Service Task Force Officer Jonathan Scott.
Assistant United States Attorney Frank M. Dale, Jr. represented the United States.
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Decherd Man Pleads Guilty to Tax Perjury, Pays Nearly $1.5 Million in Restitution to IRSRead the Press Release
CHATTANOOGA, Tenn. – On October 11, 2023, Ross A. Rinkes, 66, of Decherd, Tennessee, pleaded guilty to making and subscribing a false U.S. Individual Income Tax Return, Form 1040, in the United States District Court for the Eastern District of Tennessee at Chattanooga. Sentencing has been set for March 7, 2024, before the Honorable Charles E. Atchley, Jr., in the United States District Court at Chattanooga.
Rinkes faces a term of up to three years in federal prison, a fine of up to $100,000, and supervised release for up to one year. As required by his plea agreement with the government, he has paid restitution to the IRS in the amount of $1,485,120.38, which includes unpaid taxes plus penalties and interest required by law.
As part of the plea agreement filed with the court, Rinkes waived an indictment by a Federal Grand Jury and agreed to plead guilty to the aforementioned charge. Rinkes, the owner of Rinkes Angus Ranch, a farm near Decherd, Tennessee, was in the business of purchasing and reselling chicken litter, which is used as fertilizer, and selling crops to grain aggregators. For 2015, 2017, 2018, 2019, and 2020, he provided his tax return preparer with false information that led to material underreporting of his income for each year. Rinkes signed those tax returns under penalty of perjury. On his tax return for 2017, Rinkes willfully and falsely underreported his income by at least $523,796, which resulted in him underreporting his income tax due for that year by at least $181,659. His false individual income tax returns for 2015, 2017, 2018, 2019, and 2020 resulted in a total tax loss of $679,515 to the United States.
United States Attorney Francis M. Hamilton III of the Eastern District of Tennessee and Special Agent in Charge Donald “Trey” Eakins of the IRS Criminal Investigation Division made the announcement.
The investigation was led by IRS Criminal Investigation Division Special Agent Michael T. Whitesell.
Assistant United States Attorney Joseph G. DeGaetano represents the United States.
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Chattanooga Man Sentenced to 60 Months for Unlawful Possession of A Firearm in Connection with June 5, 2022, McCallie Avenue ShootingsRead the Press Release
CHATTANOOGA, Tenn. On November 9, 2023, Rodney Harris, 32 of Chattanooga, TN, was sentenced to 60 months in prison by the Honorable Travis R. McDonough, United States District Judge, in the United States District Court for the Eastern District of Tennessee at Chattanooga.
As part of the plea agreement filed with the court, Harris pled guilty on June 7, 2023, to unlawful possession of a firearm by a convicted felon, in violation of 18 U.S.C. §922(g)(1). Following his imprisonment, Harris will be on supervised release for three years.
According to court records, Harris, who had previously been convicted in federal court of a drug conspiracy felony, was caught on camera wearing a mask and brandishing an Anderson Manufacturing AM-15 AR-pistol with an arm brace in front of Mary’s Bar and Grill on McCallie Avenue just prior to the shooting commencing. Harris himself was shot 17 times and run over by a vehicle during the incident.
United States Attorney Francis M. Hamilton III of the Eastern District of Tennessee; Special Agent in Charge Marcus Watson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and Special Agent in Charge Joseph E. Carrico, of the Federal Bureau of Investigations (FBI), made the announcement.
The indictment is the result of an investigation by the Chattanooga Police Department, ATF, and FBI. Several other federal, state, and local law enforcement agencies assisted in the investigation, including the United States Marshals Service, United States Secret Service, and the Tennessee Bureau of Investigation.
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 face.
Assistant United States Attorney Christopher D. Poole represented the United States.
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U.S. Attorney's Office Announces Participation in Justice Department's Nationwide Election Day ProgramRead the Press Release
KNOXVILLE, Tenn. – The United States Attorney’s Office announced today that Assistant United States Attorney (AUSA) Mac Heavener will lead the efforts of the Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 7, 2023, general election. AUSA Heavener has been appointed to serve as the District Election Officer (DEO) for the Eastern District of Tennessee, and in that capacity is responsible for overseeing the Office’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.
The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).
In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA Heavener will be on duty in this District while the polls are open. He can be reached by the public at the following telephone numbers: (423) 823-5009 or (423) 218-6652.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (865) 544-0751.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/.
“Ensuring free and fair elections depends in large part on the assistance of the American electorate,” stated United States Attorney Francis M. Hamilton III. “It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
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Knoxville Police Officer Arrested for Production of Child PornographyRead the Press Release
KNOXVILLE, Tenn. — Dan Roark, 47, an officer with the Knoxville Police Department, was arrested today in Knoxville on federal charges involving the production of child pornography.
An initial appearance was held on Monday, November 6, 2023, at 2:30 p.m., in United States District Court in Knoxville before the Honorable Jill E. McCook, United States Magistrate Judge.
Details of the charges are outlined in the Criminal Complaint and Affidavit in Support of Criminal Complaint, Case No. 3:23-MJ-2201, which are filed in the United States District Court for the Eastern District of Tennessee.
The Criminal Complaint is the result of an investigation by Homeland Security Investigations (HSI), Scott County Sheriff, Virginia, Tennessee Bureau of Investigation (TBI), and the Ninth Judicial District Attorney’s Office.
Assistant United States Attorney Jennifer Kolman will represent the United States.
Members of the public are reminded that these are only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
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Sharon Naylor Sentenced for Her Role in Operating Pill MillRead the Press Release
KNOXVILLE, Tenn. – On November 2, 2023, Sharon Naylor, 58, of Junction City, Kentucky, was sentenced to a term of imprisonment of 12 months and one day by the Honorable Thomas A. Varlan, United States District Judge, in the United States District Court for the Eastern District of Tennessee at Knoxville.
As part of the plea agreement filed with the court, Naylor waived an indictment by a Federal Grand Jury and agreed to plead guilty to an information charging her with one count of maintaining a drug premises, in violation of 21 U.S.C. § 856; Naylor also pleaded guilty to an indictment charging her with one count of money laundering, in violation of 18 U.S.C. § 1957. Following her incarceration, Naylor will be on supervised release for one year. In addition, Naylor was also ordered to forfeit the proceeds of her crime, including approximately $1.9 million in real property, cash, gold and silver coins and bouillon, all of which were seized by the United States.
According to court documents, Naylor, a nurse practitioner, owned and managed a non-insurance, cash-equivalent pain clinic named Lafollette Wellness Center (LWC), in Campbell County, Tennessee. Naylor continued to own and operate LWC, despite knowing that the medical director, co-defendant Dr. Henry Babenco, and the physician’s assistant, co-defendant Alicia Taylor, were prescribing opioids to patients outside professional practice and for no legitimate medical purpose.
Naylor, Babenco, Taylor, and LWC office manager, Gregory Madron, were charged with drug-related offenses as part of the April 2019 Appalachian Regional Prescription Opioid Strike Force Surge; Taylor pleaded guilty to her role in the distribution of controlled substances in May 2021, Madron pleaded guilty to a misdemeanor offense for his role in September 2023. Babenco died in a plane crash in February 2021. Madron and Taylor are scheduled to be sentenced in January and February 2024, respectively.
U.S. Attorney Francis. M. Hamilton III, of the Eastern District of Tennessee; Special Agent in Charge J. Todd Scott, of the Drug Enforcement Administration (DEA); and Special Agent in Charge Joseph E. Carrico, of the Federal Bureau of Investigation (FBI), made the announcement.
The charges were the result of an investigation by the DEA, the FBI, the Tennessee Bureau of Investigation, and assisted by the Appalachian Regional Prescription Opioid Task Force.
Assistant U.S. Attorney Anne-Marie Svolto of the Eastern District of Tennessee is prosecuting the case. The Justice Department’s Fraud Section Appalachian Regional Prescription Opioid Strike Force (ARPO) and Assistant U.S. Attorney Emily Petro of the Middle District of Tennessee, formerly of the Justice Department’s Fraud Section, provided valuable assistance.
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Chattanooga Man Sentenced to 110 Months for Unlawful Possession of A Firearm in Connection with June 5, 2022, McCallie Avenue ShootingsRead the Press Release
CHATTANOOGA, Tenn. On November 3, 2023, Garrian King, 29, of Chattanooga, TN, was sentenced to 110 months in prison by the Honorable Travis R. McDonough, United States District Judge, in the United States District Court for the Eastern District of Tennessee at Chattanooga. King was also sentenced to a consecutive two years for violating a federal term of supervised release on an unrelated case.
As part of the plea agreement filed with the court, King pled guilty on April 12, 2023, to unlawful possession of a firearm by a convicted felon, in violation of 18 U.S.C. §922(g)(1). Following his imprisonment, Harris will be on supervised release for 3 years.
According to court records, King, who had previously been convicted in federal court of being a felon in possession of a firearm, took an Anderson Manufacturing AM-15 AR-pistol with an arm brace from his co-defendant Rodney Harris who had been shot in front of Mary’s Bar and Grill on McCallie Avenue. King left the scene with the firearm, which law enforcement later recovered.
United States Attorney Francis M. Hamilton, III of the Eastern District of Tennessee; Special Agent in Charge Marcus Watson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and Special Agent Charge, Joseph E. Carrico, of the Federal Bureau of Investigation (FBI), made the announcement.
The indictment is the result of an investigation by the Chattanooga Police Department, ATF, and FBI. Several other federal, state, and local law enforcement agencies assisted in the investigation, including the United States Marshals Service, United States Secret Service, and the Tennessee Bureau of Investigation.
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 face.
Assistant United States Attorney Christopher D. Poole represented the United States.
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DEA National Prescription Drug Take Back DayRead the Press Release
KNOXVILLE, Tenn. On Saturday, October 28th, from 10 a.m. to 2 p.m., the U.S. Drug Enforcement Administration (“DEA”) will provide the public the opportunity to prevent pill abuse and theft by ridding their homes of potentially dangerous expired, unused, and unwanted prescription drugs. Location information is available from the DEA, along with items that cannot be accepted. This service is free and anonymous, no questions asked.
This October’s event is DEA’s 24th nationwide event since its inception 11 years ago. Last spring, Americans turned in nearly 663,725 pounds of prescription drugs at nearly 4,955 sites operated by the DEA and 4,497 from its state and local law enforcement partners.
The DEA will now accept vaping devices and cartridges at any of its drop-off locations during National Prescription Drug Take Back Day. It is important to note that DEA cannot accept devices containing lithium-ion batteries. If batteries cannot be removed prior to drop-off, DEA encourages individuals to consult with stores that recycle lithium-ion batteries. Concerns have been raised across the United States over illnesses and deaths caused by vaping and the high youth vaping initiation rates. To support a healthy lifestyle and energetic population, especially among America’s youth, DEA is committed to doing all it can to help safely dispose of vaping devices and substances.
The DEA’s “Take Back” day and “Get Smart About Drugs” initiatives address the vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the United States are alarmingly high, as are the number of accidental poisonings and overdoses because of these drugs. Synthetic opioids, such as illicit fentanyl, are the primary driver of the increase in overdose deaths. For information on DEA’s “Take Back” in Spanish, click here, or for more information on the “Get Smart About Drugs” publication, click for English or Spanish.
In addition to DEA’s National Prescription Drug Take Back Day, there are many other ways to dispose of unwanted prescription drugs every day, including the 11,000 authorized collectors that are available all year long. For more information, visit DEA’s year-round collection site locator. Participating in the next DEA Take Back Day on Saturday, October 8th, simply means cleaning out your medicine cabinet or anywhere you keep unused, unwanted, or expired medications and dropping them off at your nearest collection site. For more information about the disposal of prescription drugs or about the October 28th Take Back day event, go to DEA Drug Take Back event or by calling 800-882-9539.
The FDA also provides information on how to properly dispose of prescription drugs. More information is available here: English or Spanish.
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Federal Jury Convicts Tennessee Man of Terrorism ChargeRead the Press Release
On Oct. 19, following an eight-day trial, a jury convicted Benjamin Carpenter, 31, of Knoxville, Tennessee, aka Abu Hamza, of attempting to provide material support to ISIS, a foreign terrorist organization.
According to evidence presented at trial, Carpenter served as the leader of Ahlut-Tawhid Publications, an international organization of pro-ISIS “munasirin” (i.e., supporters), dedicated to translating, producing and distributing ISIS propaganda throughout the world. For years, Carpenter, using his alias “Abu Hamza,” published a large body of ISIS media, including his weekly newsletter “From Dabiq to Rome,” a periodical that, among other things, celebrated the deaths of American soldiers, glorified suicide bomber, and called for open war against the United States and its Western allies. In 2020 and 2021, Carpenter contacted an individual he believed to be affiliated with ISIS’s central media bureau and provided translation services for a project intended to relaunch Al-Hayat Media Center, ISIS’s official foreign-language media arm.
Carpenter faces up to 20 years in prison and a lifetime of supervised release. He will be sentenced by the Honorable Katherine A. Crytzer, U.S. District Judge at a later date.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee, and Special Agent in Charge Joseph E. Carrico of the FBI Knoxville Field Office made the announcement.
The Knoxville Joint Terrorism Task Force, which is composed of federal, state, and local law enforcement agencies, investigated the case, with assistance from FBI Field Offices across the country.
Assistant U.S. Attorneys Kyle J. Wilson and Casey T. Arrowood for the Eastern District of Tennessee and Trial Attorney Charles J. Kovats Jr. of the National Security Division’s Counterterrorism Section represented the United States at trial.
Federal Jury Convicts Knoxville Man of Terrorism ChargeRead the Press Release
KNOXVILLE, Tenn. - On October 19, 2023, following an eight-day trial in United States District Court, a jury convicted Benjamin Carpenter, age 31, of Knoxville, Tennessee, also known as “Abu Hamza,” of attempting to provide material support to ISIS, a foreign terrorist organization, in violation of Title 18, United States Code, Section 2339B.
Carpenter faces a sentence of up to 20 years in federal prison and a lifetime term of supervised release. He will be sentenced in Knoxville, Tennessee, by the Honorable Katherine A. Crytzer, United States District Judge at a later date.
The evidence presented at trial demonstrated that Carpenter served as the leader of Ahlut-Tawhid Publications, an international organization of pro-ISIS “munasirin” (i.e., supporters), dedicated to translating, producing, and distributing ISIS propaganda throughout the world. For years, Carpenter, using his alias “Abu Hamza,” published a large body of ISIS media, including his weekly newsletter From Dabiq to Rome, a periodical that, among other things, celebrated the deaths of American soldiers, glorified suicide bombers, and called for open war against the United States and its Western allies. In 2020 and 2021, Carpenter contacted an individual he believed to be affiliated with ISIS’s central media bureau and provided translation services for a project intended to relaunch Al-Hayat Media Center, ISIS’s official foreign-language media arm. Unbeknownst to him, that individual was an FBI undercover employee who had infiltrated Carpenter’s group.
Assistant Attorney General Matthew G. Olsen of the Department of Justice National Security Division, United States Attorney Francis M. Hamilton III of the Eastern District of Tennessee, and Special Agent in Charge Joseph E. Carrico of the Knoxville Field Office of the Federal Bureau of Investigation made the announcement. The case was investigated by the Knoxville Joint Terrorism Task Force, which is composed of federal, state, and local law enforcement agencies. It was led by the Knoxville FBI Field Office and involved the assistance of FBI offices from across the country.
Assistant U.S. Attorneys Kyle J. Wilson and Casey T. Arrowood of the Eastern District of Tennessee and Trial Attorney Charles J. Kovats, Jr. of the National Security Division’s Counterterrorism Section represented the United States at trial.
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U.S. Attorney's Office for the Eastern District of Tennessee Announces $200,000 in Department of Justice Programs Grant FundingRead the Press Release
KNOXVLLE, Tenn. On October 13, 2023, the United States Attorney’s Office for the Eastern District of Tennessee announced $200,000 in Department of Justice, Office of Community Oriented Policing Services (COPS Office) funding for Law Enforcement Mental Health and Wellness Act (LEMHWA) Program.
- City of Knoxville - $200,000.
The Office of Community Oriented Policing Services was created through the passage of the Violent Crime Control and Law Enforcement Act of 1994 to advance the practice of community policing by the nation’s state, local, territorial, and tribal law enforcement agencies through information, technical assistance, training, and grant resources. The COPS Office is headed by a Director appointed by the Attorney General, and is organized into directorates, comprising key operational divisions and several functional areas.
Law Enforcement Mental Health and Wellness Act (LEMHWA) funds are used to improve the delivery of and access to mental health and wellness services for law enforcement through the implementation of peer support, training, family resources, suicide prevention, and other promising practices for wellness programs. The 2023 LEMHWA program funded projects that develop knowledge, increase awareness of effective mental health and wellness strategies, increase the skills and abilities of law enforcement, and increase the number of law enforcement agencies and relevant stakeholders using peer support, training, family resources, suicide prevention, and other promising practices for wellness programs.
The awards announced above are being made as part of the regular end-of-fiscal year cycle. Additional information about FY23 awards can be found on COPS’s website here: https://cops.usdoj.gov/grants. For a complete list of the LEMHWA awards, please click on this link: https://cops.usdoj.gov/pdf/2023AwardDocs/lemhwa/award_list.pdf.
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Dental Provider and Associated Individuals Agree to Resolve Allegations of Improper Billing of TennCareRead the Press Release
KNOXVILLE, Tenn. – The United States Attorney’s Office announced today that Dr. Michael Sawaf and his affiliated company Premier Dental Group PLLC of Knoxville, f/k/a Orthodontic Designs by Michael Sawaf, PLLC (“PDG”), have agreed to pay $985,541 to resolve allegations that they knowingly and improperly submitted false claims for dental services to TennCare in violation of the False Claims Act (“FCA”) and the Tennessee Medicaid False Claims Act (“TMFCA”). Erin Ferdowsi and Reja Ferdowsi, both of whom were affiliated with PDG, also agreed to resolve similar allegations against them.
TennCare prohibits billing for services that are not provided, upcoding claims to receive higher reimbursements to which a provider is not entitled, and billing for unnecessary services. TennCare also requires that dentists apply for and receive approval to participate in the TennCare program before billing for services rendered to beneficiaries. The credentialing process is intended to ensure that beneficiaries receive the highest quality of care from competent providers who have been vetted prior to rendering services.
Dr. Sawaf owns and sees patients at PDG, a dental and orthodontics clinic located at 303 S. Concord Street, Suite 323, in Knoxville, TN. Erin and Reja Ferdowsi operated, managed, and/or worked at PDG. The settlement resolves allegations that, from January 1, 2016, through December 31, 2020, PDG knowingly submitted, or caused the submission of, false claims to TennCare for payment relating to various dental procedures. The settlement also resolves allegations that, between August 14, 2019, and September 11, 2019, PDG knowingly submitted, or caused the submission of, claims for payment to TennCare that falsely identified credentialed dentists as the rendering provider for services that were actually rendered by uncredentialed dentists who were ineligible to bill TennCare.
This settlement is the result of a collaborative effort between the U.S. Attorney’s Office for the Eastern District of Tennessee, the Federal Bureau of Investigation, the Tennessee Attorney General’s Office, and the Tennessee Bureau of Investigation. The investigation that preceded the settlement was prompted by a lawsuit filed in 2020 under the qui tam or “whistleblower” provisions of the FCA and TMFCA, which permit a private individual (known as a “relator”) to sue on behalf of the government for false claims and to share in any recovery. The relators’ share of the recovery in this case is $182,325.
Assistant U.S. Attorney Joseph C. Rodriguez represented the United States.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
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U.S. Attorney's Office for the Eastern District of Tennessee Announces over $4 Million in Department of Justice Programs Grant FundingRead the Press Release
KNOXVLLE, Tenn. On September 28, 2023, the United States Attorney’s Office for the Eastern District of Tennessee announced $4,684,929 in Department of Justice, Office of Justice Programs (OJP) funding.
- City of Chattanooga - $500.000.
- City of Knoxville - $2,000,000.
- City of Sevierville - $299,600.
- Hamilton County Board of Education - $994,679.
- Knoxville Leadership Foundation - $750,000.
- Metro Moore County Emergency Management Agency - $140,650.
The Office of Justice Programs is a federal agency that provides federal leadership, grants, training, technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and uphold the rule of law by strengthening the criminal and juvenile justice systems. OJP’s six program offices support state, local, and tribal community safety efforts; crime victim assistance and compensation programs; juvenile justice and child protection activities; sex offender management; a wide range of training and technical assistance opportunities; ground-breaking criminal justice research; and statistical collections covering a host of justice system topics.
The awards announced above are being made as part of the regular end-of-fiscal year cycle. Additional information about FY23 awards can be found on OJP’s website here: www.ojp.gov/funding/explore/ojp-award-data. For more information, please contact [email protected].
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U.S. Attorney's Office for the Eastern District of Tennessee Announces over 1.3 Million in Department of Justice Programs Grant FundingRead the Press Release
KNOXVLLE, Tenn. On September 27, 2023, the United States Attorney’s Office for the Eastern District of Tennessee announced $1,338,556 in Department of Justice, Office of Justice Programs (OJP) funding.
- City of Bristol - $11,487.
- City of Knoxville - $632,355.
- County of Greene - $14,364.
- Middle Tennessee State University- $99,818.
- University of Tennessee Knoxville - $229,454.
- University of Tennessee Knoxville - $351,078.
The Office of Justice Programs is a federal agency that provides federal leadership, grants, training, technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and uphold the rule of law by strengthening the criminal and juvenile justice systems. OJP’s six program offices support state, local, and tribal community safety efforts; crime victim assistance and compensation programs; juvenile justice and child protection activities; sex offender management; a wide range of training and technical assistance opportunities; ground-breaking criminal justice research; and, statistical collections covering a host of justice system topics.
The awards announced above are being made as part of the regular end-of-fiscal year cycle. Additional information about FY23 awards can be found on OJP’s website here: www.ojp.gov/funding/explore/ojp-award-data. For more information, please contact [email protected].
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U.S. Attorney's Office for the Eastern District of Tennessee Announces over $6 Million in Department of Justice Programs Grant FundingRead the Press Release
KNOXVLLE, Tenn. On September 25, 2023, the United States Attorney’s Office for the Eastern District of Tennessee announced $6,487,260 in Department of Justice, Office of Justice Programs (OJP) funding.
- Blount County, County Executive - $22,147.
- City of Chattanooga - $192,244.
- City of Kingsport - $28,103.
- City of Knoxville - $154,782.
- City of Morristown - $18,819.
- Community Coalition Against Human Trafficking - $950,000.
- County of Washington - $31,657.
- First Things First Inc. - $764,508.
- Hamilton County Board of Education - $1,000,000.
- Knox County - $1,300,000.
- Knoxville Leadership Foundation - $900,000.
- Rescue 180, Inc. - $1,125,000.
The Office of Justice Programs is a federal agency that provides federal leadership, grants, training, technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and uphold the rule of law by strengthening the criminal and juvenile justice systems. OJP’s six program offices support state, local, and tribal community safety efforts; crime victim assistance and compensation programs; juvenile justice and child protection activities; sex offender management; a wide range of training and technical assistance opportunities; ground-breaking criminal justice research; and, statistical collections covering a host of justice system topics.
The awards announced above are being made as part of the regular end-of-fiscal year cycle. Additional information about FY23 awards can be found on OJP’s website here: www.ojp.gov/funding/explore/ojp-award-data. For more information, please contact [email protected].
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Philip George Turner Sentenced to 17 Years for Distribution and Possession of Child Pornography and Felon in Possession of A FirearmRead the Press Release
KNOXVILLE, Tenn. – On September 21, 2023, Philip George Turner, 39, currently of Kingston, TN, was sentenced to 204 months by the Honorable Katherine A. Crytzer, United States District Judge, in the United States District Court for the Eastern District of Tennessee at Knoxville.
As part of the plea agreement filed with the court, Turner waived an indictment by a Federal Grand Jury and agreed to plead guilty to an information charging him with, one count of distribution of child pornography in violation of 18 U.S.C. § 2252A(a)(1)(2); one count of possession of child pornography in violation of 18 U.S.C. § 2252A(a)(5)(B); and, one count of felon in possession of a firearm and ammunition in violation of 18 U.S.C. § 922(g)(1). Following his incarceration, Turner will be on supervised release for 20 years and will be required to register with state sex offender registries and to comply with special sex offender conditions.
According to court records, in May 2022, local law enforcement received a tip from an out of state undercover officer that Turner was distributing child pornography on an Internet site. The Federal Bureau of Investigation (FBI) became involved as the FBI was also investigating a Cybertip that asserted Turner uploaded 120 files of child pornography containing still images and videos. As the investigation progressed, law enforcement learned that Turner was on parole for convictions from Illinois.
In June 2022, law enforcement went to Turner’s home with a search warrant. Upon entering, multiple firearms were seen lying about the residence to which Turner admitted he was going to attempt to sell. The seizure yielded five pistols and ammunition, and child pornography.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee; Special Agent in Charge, Joseph E. Carrico, of the FBI; and Special Agent in Charge, Marcus Watson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) made the announcement.
The criminal information was the result of an investigation by Agent Cortny Dugger and Criminal Investigator Chanel Finnell with the Tennessee Ninth Judicial District Attorney General Office-Internet Crimes Against Children’s Unit, the FBI, and ATF.
Assistant United States Attorney Jennifer Kolman 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 United States Attorney’s 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.justice.gov/psc.
For more information about internet safety education, please visit www.justice.gov/psc/resources.html and click on the tab "resources.”
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Sean Williams Indicted for Production of Child PornographyRead the Press Release
GREENEVILLE, Tenn. – On September 12, 2023, a federal grand jury in Greeneville returned a three-count indictment against Sean Williams, 51, of Johnson City, Tennessee, for producing visual depictions of minors engaged in sexually explicit conduct. Williams appeared in federal court on September 14, 2023, before the Honorable Cynthia Richardson Wyrick, United States Magistrate Judge, and entered a plea of not guilty to the charges in the indictment. The trial has been set for January 23, 2024, before the Honorable J. Ronnie Greer, United States District Court Judge, in United States District Court, in Greeneville, Tennessee.
If convicted, Williams faces a minimum mandatory term of 15 years in prison and up to 30 years in prison as to each count of the indictment. Williams also faces a maximum of a life term of supervision and $250,000 fine as to each count of the indictment.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee; and Federal Bureau of Investigation (“FBI”) Special Agent in Charge Joseph E. Carrico made the announcement.
This indictment is the result of an investigation by FBI, Tennessee Bureau of Investigation, Homeland Security Investigation, and First Judicial District Attorney General’s Office.
Assistant U.S. Attorneys Meghan Lynn Gomez and Emily Swecker 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.
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U.S. Attorney's Office for the Eastern District of Tennessee Announces $1.3 Million in Department of Justice Grant Funding for Youth MentoringRead the Press Release
KNOXVLLE, Tenn. On September 11, 2023, the United States Attorney’s Office for the Eastern District of Tennessee announced $1.3 Million in Department of Justice, Office of Juvenile Justice, and Delinquency Programs (OJJDP) grant funding to support the mentoring for youth affected by opioid and other substance misuse.
- Knoxville Leadership Foundation - $650,000.
- Boys and Girls Clubs of the Tennessee Valley – $650,000.
OJJDP envisions a juvenile justice system centered on the strengths, needs, and voices of youth and families. Young people and family members with lived experience are vital resources for understanding and reaching persons involved or at risk of involvement with youth-serving systems. OJJDP asks stakeholders to join them in sustainably integrating bold, transformative youth and family partnership strategies into their daily work. OJJDP believes in achieving positive outcomes for youth, families, and communities through meaningful partnership and active partnerships, ensuring they play a central role in collaboratively developing solutions.
The awards announced above are being made as part of the regular end-of-fiscal year cycle. More information about these and other OJP awards can be found on the OJP Grant Awards Page. For more information regarding all OJP funding opportunities, visit https://www.ojp.gov/funding/explore/current-funding-opportunities.
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Chattanooga Man Sentenced to 54 Months in Federal Prison for Defrauding ChurchRead the Press Release
CHATTANOOGA, Tenn. On August 24, 2023, David Michael Apps, 50 of Chattanooga, Tennessee, was sentenced to 54 months in prison by the Honorable Charles E. Atchley, Jr., in the United States District Court for the Eastern District of Tennessee at Chattanooga.
As part of the plea agreement filed with the court in February 2023, Apps agreed to plead guilty to an information charging him with one count of wire fraud in violation of 18 USC § 1343. In addition to the 54 months’ term of imprisonment, Apps was also sentenced to 3 years’ supervised release, ordered to pay $1.08 million in restitution, and forfeited $4,200 in cash seized by the United States.
According to court records, from 2014 through 2021, Apps was involved in a scheme to embezzle over $1.3 million while acting as the business manager of Broad Street United Methodist Church in Cleveland, TN. App’s scheme included the use of an official church credit card to pay for personal expenses. Some of these expenses included payment for personal travel, automobiles, medical bills for family members, boat/watercraft and marina fees, and other personal items, none of which was related to church business. Apps used his federal firearms license to funnel additional stolen money through his business account by using stolen church money to acquire a large supply of firearms. Apps also wrote checks to himself under the guise of church member donations to support supposed medical bills relating to his false claim that he had brain cancer. Apps additionally failed to pay the church’s payroll taxes over a period of years, which resulted in over a $1 million tax liability to the IRS from the church.
Assistant United States Attorney Steven Neff represents the United States.
The investigation was conducted by the FBI as part of the Smoky Mountains Financial Crimes Task Force.
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Five Amazon Marketplace Sellers and Four Amazon Marketplace Companies Sentenced for Price FixingRead the Press Release
KNOXVILLE, Tenn. – Five individuals and four companies have been sentenced for participating in a conspiracy to fix the prices of DVDs and Blu-Ray Discs sold on the Amazon marketplace. This investigation has resulted in a total of six individual guilty pleas and four corporate guilty pleas.
Victor Btesh, of New York, was sentenced to 18 months’ incarceration, followed by two years of supervised release, and a fine of $38,000; Btesh’s three companies, Michelle’s DVD Funhouse, MJR Prime, and Prime Brooklyn, were each respectively sentenced to a $156,520, $125,688, and $61,844 criminal fine on August 23, 2023, in the U.S. District Court for the Eastern District of Tennessee.
Additionally, Emmanuel Hourizadeh, Raymond Nouvahian, Morris Sutton, Bruce Fish, and Fish’s company, BDF Enterprises, Inc. were all sentenced on July 21, 2023, also in the U.S. District Court for the Eastern District of Tennessee. Hourizadeh, and Nouvahian, both of New York, were sentenced to one month’s imprisonment, seven months home confinement, a criminal fine of $55,000 each, and two years of supervised release; Sutton, of New Jersey, was sentenced to one month’s imprisonment, five months home confinement, a $20,000 criminal fine, and two years of supervised released; Fish, of Minnesota, was sentenced to six months’ imprisonment, six months’ home confinement, a $48,750 criminal fine, and two years of supervised released; and Fish’s company, BDF Enterprises, was sentenced to a $234,000 criminal fine.
“Americans are becoming increasingly reliant on online marketplaces, making it more important as ever to protect them from being cheated on the internet,” said Deputy Assistant Attorney General Manish Kumar of the Justice Department’s Antitrust Division. “These sentences reflect the Division’s commitment to seeking punishment for criminal antitrust violations wherever they may occur.” “Conspiring to fix prices in online marketplaces is a federal crime,” said U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee. “These convictions and sentences demonstrate our office’s commitment to prosecuting price-fixing conspiracies and to protecting consumers in the Eastern District of Tennessee from paying inflated prices in online marketplaces.”
“Activities related to price fixing and collusion do not promote an environment conducive to open competition, ultimately harming the consumer,” said Executive Special Agent in Charge Kenneth Cleevely of the U.S. Postal Service (USPS) Office of Inspector General. “The sentencings in this case represent a win for all law enforcement agencies who investigate those who engage in this type of harmful conduct to ensure that justice is served.”According to court documents, these defendants agreed with co-conspirators to raise and maintain the prices of DVDs and Blu-Rays sold through Amazon marketplace storefronts, resulting in those products being sold at collusive and noncompetitive prices. Hourizadeh, Nouvahian, and Sutton pleaded guilty to price fixing on January 7, 2022. Btesh and all three corporate entities pleaded guilty to price fixing on February 9, 2023, after having been indicted on March 16, 2022. Lastly, Fish and BDF Enterprises pleaded guilty to price fixing on February 10, 2023, after having been indicted on March 16, 2022.
Amazon Marketplace is an e-commerce platform that enables third-party vendors to sell new or used products alongside Amazon’s own offerings. Amazon Marketplace is owned and operated by Amazon.com, Inc.
Trial Attorneys Robert M. Jacobs, Kevin C. Culum, Elizabeth K. Noonan-Pomada, and Nickolas R. Foran from the Antitrust Division’s Chicago Office and Assistant U.S. Attorney William A. Roach, Jr. for the Eastern District of Tennessee prosecuted the case. The case was investigated with the assistance of the FBI’s New York Field Office and the USPS Office of Inspector General’s Contract Fraud Investigations Division.
Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258 or visit http://www.justice.gov/atr/report-violations.
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Assistant District Attorney Charles Minor Appointed as Special Assistant United States AttorneyRead the Press Release
CHATTANOOGA, Tenn. – United States Attorney Francis M. Hamilton III announced the appointment of Assistant District Attorney (“ADA”) Charles Minor to serve as a Special Assistant U.S. Attorney (“SAUSA”) in the Criminal Division of the U.S. Attorney’s Office in Chattanooga, Tennessee. This appointment is the result of a partnership between the U.S. Attorney’s Office and the Hamilton County District Attorney’s Office.
“Due to the extraordinary proliferation of crimes against children originating on the internet, we have joined efforts with District Attorney Coty Wamp to fight crimes against children by a adding a specially appointed federal prosecutor to work these types of cases,” said U.S. Attorney Francis M. Hamilton III. “As a SAUSA, ADA Minor will work with the district’s Project Safe Childhood program and other Assistant U.S. Attorneys to improve the program’s effectiveness. We are grateful that District Attorney Wamp is willing to share her talent with our office to combat dangerous predators who relentlessly use the internet to exploit the most vulnerable members of our community. ADA Minor has developed a great working relationship with federal agents and task force officers over the years, and his record shows he is dedicated to ending the exploitation of children.”
“When my office realized there was a way in which we could partner with the U.S. Attorney’s Office and federal agencies to ensure prosecution for offenders who prey on children, we knew it was something we wanted to be involved in,” said District Attorney Coty Wamp. “ADA Minor stepped up and has made these cases a priority. We are very proud of this partnership.”
Charles Minor has worked as an Assistant District Attorney for Hamilton County since 2006, where he has focused on prosecuting child abuse and child exploitation cases, homicide, violent crimes, and drug cases. He holds a Bachelor of Arts from the University of Tennessee Chattanooga and a Juris Doctorate from the Northeastern University in Boston, Massachusetts.
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Chad Thomas Sentenced for Fraudulent PPP LoansRead the Press Release
GREENEVILLE, Tenn. – On August 21, 2023, Chad B. Thomas, 41, of Blountville, Tennessee, was sentenced to 40 months imprisonment by the Honorable J. Ronnie Greer, United States District Judge, in the United States District Court for the Eastern District of Tennessee at Greeneville.
As part of the plea agreement filed with the court, Thomas agreed to plead guilty to an information charging him with one count of wire fraud in violation of 18 U.S.C. § 1343. Following his incarceration, Thomas will be on supervised release for three years. He was also ordered to repay $307,700 in restitution.
According to court records, in May and July 2020, Thomas submitted three fraudulent Payroll Protection Program (“PPP”) loan applications that included false information about payroll expenses and phony supporting documents. In the Spring of 2020, Congress had authorized the issuance of forgivable PPP loans to qualified businesses for use in paying authorized expenses as a legislative response to the COVID-19 pandemic through the CARES Act. Applicants completed and submitted loan applications that described historical payroll information and attached supporting documentation.
Thomas submitted three fraudulent PPP loan applications and obtained a total of $307,700 in fraudulent loan proceeds. As part of his scheme, Thomas submitted false payroll information and included fictitious supporting forms as part of his applications, including IRS forms.
For the final loan—a PPP loan in the amount of $207,500—on May 12, 2020, Thomas incorporated a business named Kingdom of God, Inc. as a religious organization with the Tennessee Secretary of State. On July 6, 2020, Thomas electronically submitted a fraudulent PPP loan application for Kingdom of God, Inc. to a lender in San Diego, California. Thomas falsely represented that the company had 26 employees and an average monthly payroll of $83,000. Thomas also included a monthly payroll journal that showed Thomas’ family members, minor children, and several nationally known religious figures were paid employees of Kingdom of God, Inc. Neither the state of Tennessee nor the IRS had any record of Kingdom of God, Inc. ever paying any employees. Kingdom of God, Inc. did no business and was ultimately dissolved by the Tennessee Secretary of State for failure to file reports. The San Diego lender approved the fraudulent loan application, and on July 14, 2020, deposited the sum of $207,500 into a Kingdom of God, Inc. bank account that Thomas had formed.
As part of the investigation, law enforcement seized and administratively forfeited the sum of $161,938.01 from bank accounts Thomas controlled.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee; and Resident Agent in Charge Jason Brown of the United States Secret Service made the announcement.
The criminal indictment was the result of an investigation by the United States Secret Service. This investigation was led by Special Agents Kay Berry and Thomas Whitehead.
Assistant United States Attorney Mac D. Heavener III represented the United States.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Erwin Man Sentenced to 262 Months Imprisonment for Methamphetamine TraffickingRead the Press Release
GREENEVILLE, Tenn. – On August 14, 2023, Joshua Dwayne Mabery, 47, of Erwin, Tennessee, was sentenced to 262 months in federal prison, by the Honorable J. Ronnie Greer, in the United States District Court for the Eastern District of Tennessee at Greeneville.
Following a three-day trial, ending on March 30, 2023, Mabery was convicted of conspiracy to distribute 50 grams or more of methamphetamine, in violation of 21 U.S.C.§§ 846 and 841(a)(1); and possession with the intent to distribute methamphetamine, in violation of 21 U.S.C.§ 841(a)(1). Upon his release from prison, Mabery will be on supervised release for 10 years.
The evidence presented at trial demonstrated that Mabery, who had recently been released from prison related to a federal conviction in 2012 for conspiracy to manufacture methamphetamine, began distributing methamphetamine in the fall of 2020 in northeast Tennessee. In February 2021, he and a co-conspirator were arrested in Washington County, Tennessee, as they returned from Knoxville with over a half-kilogram of crystal methamphetamine they had just purchased from another co-conspirator.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee made the announcement.
The criminal indictment was the result of a joint investigation by the Carter County Sheriff’s Office, Johnson City Police Department, Tennessee Highway Patrol, Drug Enforcement Administration, Homeland Security Investigations, and United States Postal Service Office of Inspector General.
Assistant United States Attorneys J. Gregory Bowman and B. Todd Martin represented the United States.
This case was a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
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Former Chattanooga-Area Woman Pleads Guilty to Obstruction of JusticeRead the Press Release
CHATTANOOGA, Tenn. – On August 14, 2023, Florencia Renderos Morales, 24, currently of Houston, Texas, entered a guilty plea to one count of obstruction of justice, in violation of 18 U.S.C. § 1512(b), in the United States District Court for the Eastern District of Tennessee at Chattanooga. Sentencing has been set for January 12, 2024, at 10:00 a.m. before the Honorable Charles E. Atchley, Jr., in United States District Court at Chattanooga.
Morales faces a term of up to 20 years in Federal prison, $500,000 in fines, and supervised release of three years.
As part of the written plea agreement, Morales waived an indictment by a Federal Grand Jury and agreed to plead guilty to the aforementioned charges as set forth in a felony Bill of Information. According to court documents, Morales was an employee of La Casa de Sydney, a housing facility for undocumented and unaccompanied minor children located in the Eastern District of Tennessee. While at the facility, she engaged in inappropriate sexual conduct directed toward minor residents who were in their late teens.
The Department of Homeland Security and the Chattanooga Police Department initiated an investigation into Morales’s conduct and the conduct of others at La Casa de Sydney. Court documents indicate that the defendant became aware that she was the object of this investigation, and she contacted other involved individuals about ways to evade detection. Morales discussed who she believed reported her conduct to authorities, and she urged one former minor resident of La Casa de Sydney to delete electronic evidence that was relevant to the investigation.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee made the announcement.
This prosecution is the result of a joint investigation conducted by Homeland Security Investigations and the Chattanooga Police Department Special Victims Unit, with assistance from the United States Department of Health and Human Services Office of the Inspector General.
Assistant United States Attorneys Kyle Wilson and Jay Woods represent the United States in this action.
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Clinton Man Charged Federally for CarjackingRead the Press Release
KNOXVILLE, Tenn. – On August 8, 2023, Special Agents of the Federal Bureau of Investigation (“FBI”) charged Shown White, 43, of Clinton, TN, in a federal criminal complaint with carjacking in violation of Title 18 U.S.C. § 2119. The complaint was issued by the Honorable Cynthia Richardson Wyrick, United States Magistrate Judge for the Eastern District of Tennessee. If convicted, White could face imprisonment of up to 25 years and other penalties. White is currently in state custody, and he will make his appearance in federal court at a later date.
According to documents filed with the court, it is alleged that White flagged down a waste collection truck for help after he crashed the vehicle, he was driving in the vicinity of 549 Henley Street in Knoxville. The driver of the waste collection truck stopped in the roadway to assist. Almost immediately, White jumped into the passenger side of the vehicle, held a knife to the driver’s throat, and instructed the driver to head south on Chapman Highway. While the driver was attempting to comply with White’s demands, a struggle ensued which led the driver to jump from the moving vehicle. White took control of the vehicle and continued driving into Sevier County until ultimately crashing the garbage truck into a business located on Dolly Parton Parkway.
U.S. Attorney Francis M. Hamilton III, of the Eastern District of Tennessee, and FBI Special Agent in Charge Joseph E. Carrico made the announcement.
This prosecution is the result of an ongoing investigation by the FBI, Knoxville Police Department, and Tennessee Highway Patrol.
Assistant United States Attorney Miriam Johnson will represent the United States.
Members of the public are reminded that a complaint constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
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Federal Jury Convicts Knoxville Man of Child Exploitation OffensesRead the Press Release
KNOXVILLE, Tenn. – On July 28, following a four-day trial in United States District Court, in Knoxville, Tenn., a jury convicted Glenn Fred Glatz, 67, of Knoxville, Tennessee, of four counts of Production of Child Pornography, three counts of Transferring Obscene Material, one count of Receipt of Child Pornography, and one count of Possession of Child Pornography.
Sentencing is set for December 5, 2023, at 11:00 a.m., before the Honorable Thomas A. Varlan, in United States District Court in Knoxville, Tennessee. Glatz faces a sentence of life in prison and other penalties.
The evidence presented at trial showed that Glatz used the social media website, Deviant Art, to entice two young girls aged 13 and 14 into sending him lascivious images and videos of themselves over the internet. Glatz responded by sending images of his penis and videos of him engaged in sexual activity to the girls. Glatz saved the images and videos of his victims on his cellular phone. Forensic examination of his phone revealed other child pornography images of similarly aged female children.
U.S. Attorney Francis M. Hamilton, III, of the Eastern District of Tennessee and Federal Bureau of Investigation (FBI) Special Agent in Charge Joe Carrico, made the announcement.
This case is the result of an investigation conducted by the FBI.
Assistant U.S. Attorneys Jennifer Kolman and Suzanne Sullivan represented the United States at trial.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about PSC, please visit www.projectsafechildhood.gov.
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Greene County Area Meth Traffickers SentencedRead the Press Release
GREENEVILLE, Tenn. – On July 24, 2023, Steven Shelton, 39, of Greeneville, Tennessee, was sentenced to 168 months’ imprisonment and Shannon Crittenden, 45, of Mosheim, Tennessee was sentenced to 120 months’ imprisonment by the Honorable J. Ronnie Greer, United States District Judge, in the United States District Court at Greeneville. Co-defendant Arthur Tidwell, 46, of Greeneville, was previously sentenced to 180 months in prison on June 26, 2023.
As part of the plea agreements filed with the court Shelton and Crittenden both pleaded guilty to conspiracy to distribute 50 grams or more of methamphetamine (actual), in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(A), and 846. Tidwell plead guilty to possession with the intent to distribute 50 grams or more of methamphetamine (actual), in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(A).
According to court documents and evidence presented at sentencing, all three defendants were involved in distributing methamphetamine in and around the Greeneville area. Tidwell was traffic stopped in Washington County by the Tennessee Highway Patrol and caught with a significant quantity of methamphetamine, was released on bond, and was then arrested just over a month later in Greeneville with another large quantity of methamphetamine. Shelton and Crittenden sold methamphetamine to an individual working with law enforcement on five occasions, which led to a search warrant being executed at Shelton’s Greeneville residence where a large quantity of methamphetamine was found. The investigation revealed that Tidwell was supplying Shelton with methamphetamine, who was in turn supplying others, including Crittenden.
“The United States Attorney’s Office is committed to targeting the ongoing threat to our communities from drug traffickers who bring large quantities of high-purity methamphetamine into our communities,” said U.S. Attorney Francis M. Hamilton III. “We will continue to work with our law enforcement partners to ensure that those who seek to profit from flooding our communities with dangerous drugs will face justice.”
This sentencing was the culmination of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Law enforcement agencies participating in the joint investigation which led to the indictment and subsequent convictions in this case, included the Third Judicial Drug Task Force, Greene County Sheriff’s Office, Tennessee Highway Patrol, Greeneville Police Department, Johnson City Police Department, Tennessee Bureau of Investigation, Drug Enforcement Administration, and Federal Bureau of Investigation. Numerous agencies from the Appalachia High Intensity Drug Trafficking Area (HIDTA) Task Force assisted in the investigation.
Assistant U.S. Attorney J. Christian Lampe represented the United States.
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