Eastern District of Tennessee
Press releases recorded for this federal judicial district.
Knoxville Man Sentenced to 24 Months in Prison and Ordered to Repay $411,963 for Health Care Fraud SchemeRead the Press Release
KNOXVILLE, Tenn. – On July 14, 2023, Ian P. Clarke, 43, currently of Knoxville, was sentenced to 24 months in prison 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, Clarke agreed to plead guilty to conspiracy to commit health care fraud, in violation of 18 U.S.C. § 1349. Judge Crytzer ordered Clarke to pay restitution to Medicare in the amount of $411,963, and a fine of $44,258. Following his imprisonment, Clark will be on supervised release for two years.
As set forth in the filed plea agreement, Clarke was responsible for the day-to-day operations of TN Premier Care, a medical clinic in East Tennessee. Clarke paid kickbacks to coconspirators in exchange for signed doctors’ orders for durable medical equipment (“DME”) that was medically unnecessary. TN Premier Care provided the DME to Medicare beneficiaries across the country who did not want or need it. Clarke then caused the DME orders to be submitted to Medicare for reimbursement on behalf of TN Premier Care.
The DME orders were obtained from “leads,” which consisted of a recorded call between a call-center employee or telemarketer and a Medicare beneficiary during which the beneficiary provided their Medicare information. The recordings were provided to doctors who used the information to generate a completed DME order. The doctors who signed the DME orders often did so regardless of medical necessity, in the absence of a preexisting doctor-patient relationship, without a physical examination, and sometimes based solely on a short telephonic conversation. The completed DME orders were uploaded to a shared cloud-based document storage system to which Clarke had access.
To conceal the conspiracy, Clarke and his coconspirators created sham contracts and documentation to disguise the kickbacks as legitimate payments for marketing and consulting services. Clarke also opened a separate bank account in TN Premier Care’s name for the purpose of paying kickbacks and receiving reimbursement checks from Medicare.
Between in or about July 2018 and in or about May 2019, Clarke caused the submission of approximately $778,429 in claims to Medicare for DME orders on behalf of TN Premier Care, for which Medicare paid to TN Premier Care approximately $411,963.
U.S. Attorney Francis M. Hamilton, III, of the Eastern District of Tennessee; U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”) Special Agent in Charge Tamala E. Miles; and Federal Bureau of Investigation (FBI) Special Agent in Charge Joseph E. Carrico, made the announcement.
This case is the result of an investigation conducted by U.S. Department of Health and Human Services, Office of Inspector General, and the FBI.
Assistant United States Attorney William A. Roach, Jr., prosecuted the case.
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Dermatologist Agrees to Pay $6.6 Million to Settle Allegations of Fraudulent Billing PracticesRead the Press Release
KNOXVILLE, Tenn. – Dermatologist, John Y. Chung, M.D., and his practice Skin Cancer & Cosmetic Dermatology Center, P.C. (“SCCDC”), which operates 13 dermatology clinics in southeast Tennessee and north Georgia, have agreed to pay $6.6 million to resolve allegations that they violated the False Claims Act by knowingly submitting false claims to federal healthcare programs for Mohs Micrographic Surgeries and other dermatological procedures.
This settlement resolves allegations that Dr. Chung and SCCDC knowingly submitted false claims for payment to Medicare, Medicaid, and other government payors for Mohs procedures that were billed as if both the surgery and pathology portions of the procedures were performed by Dr. Chung, when in fact at least one portion was often performed by other individuals. The settlement further resolves allegations that SCCDC regularly billed Medicare for multiple procedures, performed on the same patient on the same day, in a manner that improperly circumvented Medicare’s “multiple procedure reduction rule.” The alleged misconduct occurred from 2010 through 2020.
“Government healthcare programs establish billing rules and guidelines to safeguard tax-payer funds. Billions of dollars intended to cover the costs of healthcare services are lost every year to fraud, waste, and abuse, and when providers disregard billing requirements, the financial viability of public programs and the healthcare they provide are put at risk. The U.S. Attorney’s Office will aggressively root out providers whose billing practices take advantage of public programs for their own private gain,” said U.S. Attorney Francis M. Hamilton III.
“When health care providers submit improper claims to federal health care programs, they waste valuable taxpayer dollars,” said Special Agent in Charge Tamala E. Miles of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Working with our law enforcement partners, our agency will continue to protect federal health care programs from fraud, waste, and abuse to ensure they can be used for their intended purposes.”
“Health care fraud, a severe problem that impacts every American, costs our country billions each year, takes critical resources out of our health care system, and contributes to the rising cost of health care for everyone. The FBI, along with our federal, state, and local partners, will continue to provide resources to investigate allegations of fraud in public programs and hold violators to account,” said FBI Special Agent in Charge Joseph E. Carrico, Knoxville Field Office.
“The VA OIG is dedicated to ensuring veterans receive the quality health care they deserve, and we will continue to work to make certain that VA healthcare programs are not compromised by fraudulent billing practices,” said Special Agent in Charge Kim R. Lampkins with the Department of Veterans Affairs Office of Inspector General’s Mid-Atlantic Field Office. “The VA OIG thanks the US Attorney’s Office, and our law enforcement partners for their efforts in this investigation.”
“To protect the integrity of federal health care programs and the patients they serve, it is important that providers are compliant with billing rules and procedures,” said TVA OIG Inspector General Ben Wagner. “The TVA OIG is committed to identifying and investigating healthcare false claims that negatively impact the people of the Tennessee Valley. The TVA-OIG will continue to work tirelessly alongside our law enforcement partners to protect the reliability of federal healthcare programs, and prevent fraud, waste, and abuse. The TVA OIG would like to thank the United States Attorney’s Office Eastern District of Tennessee for diligently pursing resolution of this case and ensuring funds were properly returned to TVA.”
“Health care providers that serve our nation’s military service members, retirees and their families are expected to meet the highest standards of ethical and professional behavior,” stated Special Agent in Charge Darrin K. Jones, DoD Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “This settlement sends a clear signal to those who take advantage of TRICARE for personal enrichment.”
“Our Medicaid Fraud Division works each day to uphold the integrity of Georgia’s Medicaid program.,” said Georgia Attorney General Chris Carr. “This includes putting a stop to providers who submit false claims and take advantage of our publicly funded healthcare system. This type of fraud and abuse will not be tolerated as we continue our efforts to protect taxpayer dollars no matter the amount.”
As part of the settlement, Chung and SCCDC entered an Integrity Agreement (IA) with the U.S. Department of Health and Human Services – Office of Inspector General (HHS-OIG), which promotes its future compliance with the statutes, regulations, program requirements, and written directives of Medicare and all other federal health care programs. The IA focuses on the practice’s continuing obligation to accurately bill and properly submit reimbursement claims to government payors.
This investigation resulted from a coordinated effort between HHS-OIG (Nashville Field Office), the Federal Bureau of Investigation (Knoxville), Tennessee Bureau of Investigation, Defense Criminal Investigative Service, Tennessee Valley Authority – OIG, U.S. Department of Veterans Affairs – OIG, the U.S. Attorneys’ Office for the Eastern District of Tennessee, the Tennessee Attorney General’s Office, and the Georgia Attorney General’s Office. The investigation was prompted by a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permits private parties to sue on behalf of the government for false claims, and to receive a share of any recovery. The qui tam case is captioned United States, State of Tennessee and State of Georgia ex rel. Chambers v. Skin Cancer and Cosmetic Dermatology Ctr. and Chung, No. 1:20-CV-177 (E.D. Tenn.). The relator’s share of the recovery will be $1.32 million.
Assistant U.S. Attorneys Jeremy Dykes and Alexa Ortiz Hadley represented the United States. Senior Assistant Attorney General Tony Hullender represented the State of Tennessee, and Assistant Attorney General Sara Vann represented the State of Georgia.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
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Joseph Dale Hale Sentenced to 25 Years for Possession of A Firearm and EscapeRead the Press Release
GREENEVILLE, Tenn. – On June 29, 2023, Joseph Dale Hale, 31, of Greeneville, Tennessee, was sentenced to 300 months’ 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 Hale to be an Armed Career Criminal based on his prior criminal history. Following his imprisonment, Hale will be on supervised release for five years.
As part of the plea agreement filed with the court, Hale agreed to plead guilty to possession of a firearm by a convicted felon, in violation of 18 U.S.C. § 922(g)(1) and escape from custody while confined for a felony offense, in violation of 18 U.S.C. § 751(a).
According to the filed plea agreement, on July 29, 2021, an officer with the Greeneville Police Department identified Hale as the operator of a stolen vehicle. When officers attempted to stop the vehicle, Hale fled. Eventually, Hale stopped in the area of North Hill Street in Greeneville. When he exited the vehicle, he fired three rounds at the officers and then fled on foot into the nearby woods. Local, state, and federal law enforcement officers assisted in a search for Hale, who was located and apprehended later that day. Law enforcement recovered the firearm Hale used to shoot at the police officers, which contained ammunition that matched casings found at the scene of the shooting. Hale was indicted federally and ordered detained for the felony offense of possessing a firearm after being convicted of a felony offense.
On October 7, 2021, while being housed in the Greene County Detention Center, Hale, assisted by another inmate, obtained a set of trustee clothes. Hale then used a ruse to be removed from his cell to a shower area, then donned the trustee clothes. He was then able to get access through two security doors and gained access to an unsecured area of the jail. Once outside, he fled the jail and stole a vehicle. He was apprehended by law enforcement later that day after crashing the vehicle.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee made the announcement.
The criminal indictment was the result of an investigation by the Greeneville Police Department, Greene County Sheriff’s Office, Tennessee Bureau of Investigation, United States Marshals Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (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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Gatlinburg Woman Sentenced to 27 Months in Prison for Defrauding COVID-19 Economic Relief ProgramRead the Press Release
KNOXVILLE, Tenn. - On June 28, 2023, Sarrah Denton Willhite, 35, of Gatlinburg Tennessee was sentenced to 27 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 a plea agreement filed with the court, Willhite agreed to plead guilty to an indictment charging her with one count of wire fraud related to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, in violation of 18 U.S.C. § 1343. Judge Varlan ordered Willhite to pay restitution in the amount of $346,600 and to complete a term of supervised release of two years following her release from prison.
The CARES Act is a federal law enacted in March 2020 to provide emergency financial assistance to the millions of Americans who suffered economic effects caused by the COVID-19 pandemic. Two primary sources of relief provided by the CARES Act were the Paycheck Protection Program (“PPP”) and the Economic Injury Disaster Loan (“EIDL”) program. The EIDL program was administered by the Small Business Administration (“SBA”) and provided low-interest loans to businesses to pay for items like accounts payable, rent, mortgage payments, and other bills that could not be paid as a result of the pandemic.
As set forth in the filed plea agreement, on November 27, 2021, Willhite submitted an electronic application to the SBA requesting an EIDL on behalf of Rescue Army Nation Ministries, a nonprofit organization purportedly owned and operated by Willhite for charitable or religious purposes. Willhite submitted false documents in support of her application, including a Profit and Loss Statement that Willhite fabricated solely for the purpose of obtaining the loan. She also falsely represented that Rescue Army Nation Ministries employed eight employees. In fact, as Willhite knew, it employed none. Willhite also falsely certified that she would use the loan proceeds solely for working capital, and she misrepresented that she was acting on behalf of a charitable or religious organization.
The SBA approved the application based on Willhite’s fabricated documents and false statements. On December 17, 2021, the SBA transferred by wire $346,600 in EIDL funds into a bank account Willhite controlled. Between December 17, 2021, and January 28, 2022, Willhite spent approximately all the EIDL funds on personal items or expenses, including a vacation to Disney World, to pay off student loans, to purchase land, and to purchase two vehicles and a travel trailer. She transferred the remainder of the proceeds to her personal checking account.
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.
The case was investigated by the FBI.
Assistant United States Attorney William A. Roach, Jr., who serves as the Coronavirus Fraud Coordinator for the United States Attorney’s Office in the Eastern District of Tennessee, 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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Federal Jury Convicts Terrance Hines of Conspiracy to Distribute Fentanyl Resulting in an Overdose DeathRead the Press Release
Greeneville, Tenn. - On June 26, 2023, following a four-day trial in the United States District Court at Greeneville, a jury convicted Terrance Lamont Hines, Jr., 41, of Kingsport, Tenn., of conspiring to distribute 400 grams or more of fentanyl resulting in death in violation of 21 U.S.C. §§ 846, 841(a)(1), (b)(1)(A) and 851; possession of 40 grams or more of fentanyl with intent to distribute, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(B), three counts of distribution of a quantity of fentanyl, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(C); possession of a firearm in furtherance of a drug trafficking offense, in violation of 18 U.S.C. § 924(c)(1)(A) and two counts of possession of a firearm by a convicted felon in violation of 18. U.S.C. § 922(g)(1).
Sentencing is set for October 30, 2023, at 3:00 p.m. before the Honorable J. Ronnie Greer, in United States District Court for the Eastern District of Tennessee at Greeneville. Hines faces a minimum mandatory sentence of twenty years imprisonment as a result of the conviction for conspiracy to distribute 400 grams or more of fentanyl resulting in death and mandatory life in prison if the Court finds that Hines has the prior qualifying felony drug trafficking conviction filed as a notice of enhancement in the indictment.
The evidence presented at trial demonstrated that Hines supplied the fentanyl that caused the death of a 52-year-old Kingsport woman in December 2020. Three co-defendants were also part of the chain of distribution. Hines sold the fentanyl to co-defendant Robin Hutchins, who sold it to co-defendant Adam Presnell, who sold it to co-defendant Shaina Lanford, who supplied it directly to the victim. The evidence showed that on July 20, 2021, law enforcement executed search warrants at Hines’ apartment and at a Kingsport music recording studio which operated as a hub for his drug trafficking. Officers located two firearms and over 100 grams of fentanyl. Hines, who had previously been convicted of multiple felony offenses, was prohibited from possessing firearms.
Co-defendants Hutchins, Presnell, and Lanford previously pled guilty to conspiracy to distribute fentanyl and will be sentenced at a later time.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee made the announcement.
The criminal indictment was the result of an investigation by the Tennessee Bureau of Investigation, Sullivan County Sheriff’s Office, and Sullivan County Drug Related Death Task Force, with assistance from the Kingsport Police Department and 2nd Judicial Drug Task Force. The Sullivan County Drug Related Death Task Force receives federally funding through the Appalachian High-Intensity Drug Trafficking Area (AHIDTA) initiative, which uses a multi-disciplinary approach to address public health and safety issues that center around the opioid epidemic as well as other dangerous drug trends.
Assistant U.S. Attorneys Emily Swecker and Mac Heavener represented the United States.
This case was brought as 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 communicates, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring results.
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Chattanooga Man Convicted of Being A Felon in Possession of A FirearmRead the Press Release
CHATTANOOGA, Tenn. – On June 27, 2023, following a one-day trial in United States District Court, in Chattanooga, Tenn., a jury convicted Andre Blocker, Jr., 22 of Chattanooga of possessing a firearm as a convicted felon in violation of 18 U.S.C. §922(g)(1).
Sentencing is set for October 26, 2023, at 10:00 a.m. before the Honorable Charles E. Atchley, Jr. in the United States District Court for the Eastern District of Tennessee at Chattanooga. Blocker faces up to ten years imprisonment.
The evidence presented at trial showed that on February 9, 2022, a Hamilton County Sheriff’s Office Lieutenant observed Blocker driving recklessly on Glenwood Drive in Chattanooga and initiated a traffic stop. During the stop, Blocker brandished a pistol and then fled, leading law enforcement on a high-speed pursuit. Block eventually crashed, striking an innocent motorist’s vehicle and a building, and then fled on foot. He was taken into custody a short distance from the crash. Officers located a Taurus 9-millimeter pistol in Blocker’s vehicle. Blocker is a multi-convicted felon.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee made the announcement.
Law enforcement agencies participating in the arrest and investigation which led to indictment and subsequent conviction of Blocker included the Hamilton County Sheriff’s Office, Chattanooga Police Department, and the Federal Bureau of Investigation Chattanooga Safe Streets Task Force.
Assistant United States Attorney Kevin T. Brown 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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Pigeon Forge Man Sentenced to 50 Years Imprisonment for Child Production and Distribution of Child PornographyRead the Press Release
KNOXVILLE, Tenn. – On June 15, 2023, Roger Glenn Boland, 68, currently of Pigeon Forge, Tennessee, was sentenced to 600 months imprisonment 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, Boland agreed to plead guilty to an indictment charging him with, one count of production of Child Sexual Abuse Material (CSAM) in violation of 18 U.S.C. § 2251(a) and (e); and one count of distribution of CSAM in violation of 18 U.S.C. 2252A(a)(2). Following his incarceration, Boland will be on a lifetime of supervised release, he also will be required to register with state sex offender registries and comply with special sex offender conditions during his supervised release.
According to the plea agreement filed with the court, after receiving a tip that a 13-year-old child was in imminent danger of sexual abuse, the U.S. Department of Homeland Security-Homeland Security Investigations (HSI) and the Knoxville Police Department Internet Crimes against Children Unit (KPD-ICAC) executed a search warrant at the home where the child victim was residing. The child victim, Boland’s granddaughter, has cerebral palsy, is non-verbal, and is wheelchair bound. Boland admitted the victim was the result of an incestual relationship between Boland and his daughter, co-defendant Felina Shockley. Authorities searched Boland’s cellphone and located CSAM of the victim produced by Boland and Shockley. Boland admitted to distributing the CSAM images to other men with whom he was in ongoing communications. Shockley has pled guilty and will be sentenced at a later date.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee and HSI Special Agent in Charge Rana Saoud made the announcement. Both express gratitude to the Knoxville Police Department’s Internet Crimes Against Children (KPD-ICAC) Unit for their collaboration in this investigation.
The criminal indictment was the result of an investigation by KPD-ICAC and HSI.
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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Wynde Collins Sentenced to 121 Months for Expansive Loan Fraud SchemeRead the Press Release
KNOXVILLE, Tenn. – On June 8, 2023, Wynde Collins, 56, of Atlanta, Georgia, was sentenced to 121 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.
Following a 12-day jury trial, which concluded on October 20, 2022, Collins was convicted of conspiracy to commit bank fraud, in violation of 18 U.S.C. § 1349, six counts of bank fraud, in violation of 18 U.S.C. §§ 1344 and 2, and conspiracy to commit money laundering, in violation of 18 U.S.C. §1956(h). Following her imprisonment, Collins will be on supervised release for three years. Collins was ordered to pay $855,374.21 in restitution to the victims’ financial institutions in this case and was further ordered to forfeit $100,000 of the fraud proceeds she personally obtained.
According to court documents and evidence presented during trial, investigators uncovered evidence of a fraudulent loan scheme during an investigation into a large-scale drug trafficking organization. From June 2014 through December 2019, Collins directed the scheme to defraud financial institutions by falsifying employment, income, and collateral information on auto loan and mortgage loan applications with credit unions and banks. Once the financial institutions funded the loans, Collins directed others, including co-conspirators to launder the loan proceeds. In total, over two million in fraudulent loans were funded.
Co-defendant Alvin Johnson, an automobile broker who conspired with Collins, entered into a plea agreement with the United States and is scheduled to be sentenced on July 7, 2023.
“Collins’ fraud scheme caused financial hardship to individuals and exploited the loan practices of credit unions, all while the defendant enriched herself,” stated U.S. Attorney for the Eastern District of Tennessee, Francis M. Hamilton III. “It is critical that such fraudsters be stopped, and our office will continue to work with our law enforcement partners to target criminal fraudulent activity.”
“Illegal activity involving fraudulent loans has brought financial hardship to banks, credit unions and individual borrowers, “stated Internal Revenue Service (IRS) Special Agent in Charge, Charlotte Field Office, Donald “Trey” Eakins III. “IRS Criminal investigation is committed to using our accounting skills to help unravel complex fraud and money laundering schemes. We are proud to work with our law enforcement partners to investigate and prosecute individuals who attempt to enrich themselves by fraudulent means, and to help put a stop to this and other types of white-collar crime.”
This case was the result of an investigation by the IRS– Criminal Investigation and the Drug Enforcement Administration (DEA). The investigation was led by IRS Special Agent Meredith Louden and DEA Task Force Office Nathan Stinnett.
Assistant United States Attorneys Anne-Marie Svolto and Jennifer Kolman represented the United States.
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Michael Wayne Lee Sentenced for Drug Offenses Related to an Overdose DeathRead the Press Release
GREENEVILLE, Tenn. – On June 8, 2023, Michael Wayne Lee, 45 of Blaine, Tennessee, was sentenced to 87 months in prison by the Honorable Clifton Corker, United States District Judge, in the United States District Court for the Eastern District of Tennessee at Greeneville. Following his imprisonment, Lee will be on supervised release for three years.
Following a 4-day trial, ending on January 27, 2023, Lee was convicted by the jury of Conspiring to Distribute Fentanyl in violation of 21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(C); Abetting the Distribution of Fentanyl, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(c), and 18 U.S.C. § 2; and Using a Communication Facility to Conspire to Distribute Fentanyl, in violation of 21 U.S.C. §§ 843(b) and (d)(1).
According to court documents and evidence presented at trial, on May 15, 2020, two inmates at the former Northeast Correctional Complex, Carter County Annex (NECX) of the Tennessee Department of Corrections (TDOC) were transported to a local hospital for treatment related to a fentanyl overdose; one inmate died. The Tennessee Bureau of Investigation (TBI) and TDOC investigators responded to the facility to investigate the incident. During the investigation, they learned that Lee, an inmate at NECX, used a contraband cell phone to communicate with a co-defendant, Debra Kathleen Vekasi. Vekasi would acquire narcotics and transport them to Carter County. She would hide the narcotics in tennis balls, which were thrown over a security fence and into the recreation yard. Inmates would collect the narcotics-filled tennis balls for Lee, who would distribute the drugs throughout NECX. On May 15, 2020, the narcotics that Vekasi provided to the inmate in NECX included 30 fake oxycodone pills that contained fentanyl. A search of Vekasi’s cell phone included text messages between her and Lee that discussed the receipt and distribution of narcotics, as well as the receipt and payment of money for the narcotics.
On May 25, 2023, Vekasi, 70, of Knoxville, Tennessee, who was also convicted at trial, was sentenced by the Honorable Clifton Corker to time served (28 months) and three years of supervised release, for her role in the conspiracy.
The criminal indictment was the result of an investigation by the TBI and TDOC’s Office of Inspection and Compliance. The investigation was led by Special Agent Jason Roark of TBI.
Assistant United States Attorneys B. Todd Martin and Mac D. Heavener 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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Grand Jury Indicts Knoxville Woman Previously Arrested in Murder-For-Hire PlotRead the Press Release
KNOXVILLE, Tenn. – On June 7, 2023, a federal grand jury in Knoxville returned a one-count indictment against Melody Sasser, 47, of Knoxville, TN, for use of interstate commerce facilities in the commission of murder-for-hire in violation of 18 U.S.C. § 1958. Sasser was arrested on Thursday, May 18, 2023, pursuant to a criminal complaint. The case has been assigned to Magistrate Judge Debra C. Poplin and District Court Judge Thomas A. Varlan. An arraignment has been scheduled for June 21, 2023 at 1:30pm.
According to documents filed with the court, it is alleged that from December 31, 2022 through April 2023, Sasser contacted a dark web hosted site known as the Online Killers Market for the purpose of hiring a hitman to murder an Alabama resident. In her communications with the site, Sasser provided photographs and location information of the victim. Sasser paid nearly $10,000 in Bitcoin to the site administrators to purchase the services of a hitman.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee and Homeland Security Investigations (HSI) Special Agent in Charge Rana Saoud and Acting Special Agent in Charge Travis Pickard made the announcement.
If convicted, Sasser faces a maximum term of 10 years in prison, $250,000 fine, restitution, and a maximum three-year term of supervised release.
This indictment is the result of an investigation by HSI Knoxville and HSI Birmingham, with the assistance of the Knoxville Police Department and the Prattville Alabama Police Department.
Assistant U.S. Attorney Anne-Marie Svolto 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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Chattanooga Police Department Awards United States Attorney's Office Federal Partner of the YearRead the Press Release
CHATTANOOGA, Tenn. On Thursday, May 18, 2023, the Chattanooga Police Department and Chief Celeste Murphy awarded the United States Attorney’s Office the honor of Federal Partner of the Year.
In bestowing this honor on the U.S. Attorney’s Office, the Chattanooga Police Department explained:
For many years, the Chattanooga Police Department has enjoyed an excellent professional relationship with our federal partners who live and work together in the greater Chattanooga area. Over those years, CPD and the U.S Attorney’s Office have partnered on numerous individual investigations, programs, and projects to enhance the safety of our community. We believe that this partnership has played an important role in our high quality of life in Chattanooga. This past year, our partnership with the USAO has been crucial in the continued development of our region's violent crime strategy. Through this partnership, we have made significant inroads into our community’s struggle with crimes committed by individuals while using or illegally possessing guns, as well as other violent crimes committed by repeat offenders. The USAO has also directly supported CPD in the prosecution of drug-related crimes that have resulted in way too many overdose deaths of people in our community. Lastly, the USAO has taken an active role in our region's awarded PSP Grant, leveraging their Department of Justice experience to provide both guidance and strategic leadership. We at CPD look forward to our continued collaboration with the USAO as we continue to build upon our violent crime strategy.
“The United States Attorney’s Office is proud of its longstanding partnership with the Chattanooga Police Department, and we are honored to receive this award from Chief Murphy,” said United States Attorney Francis M. Hamilton III. “We look forward to continuing our important work together as we collaborate to reduce violent crime in the Chattanooga community.”
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U.S. Attorney's Office for the Eastern District of Tennessee Recognizes Police WeekRead the Press Release
KNOXVILLE, Tenn. In honor of National Police Week, United States Attorney Francis M. Hamilton III recognizes the service and sacrifice of federal, state, local, and tribal law enforcement. This year, the week is observed Sunday, May 14th through Saturday, May20th. Again, this year, communities across the United States will honor and remember those law enforcement officers who made the ultimate sacrifice, as well as the family members, friends, and fellow officers left behind.
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15th, specifically honors law enforcement officers killed or disabled in the line of duty.
This year, the names of 556 officers killed in the line of duty are being added to the National Law Enforcement Officers Memorial in Washington, DC. These 556 officers include 224 officers who were killed during 2022, plus 332 officers who died in previous years, but whose stories of sacrifice had been lost to history until now. For more information, go to https://nleomf.org.
For more information about National Police Week, please visit https://nleomf.org/policeweek.
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Reference to any specific organization or service(s) offered by an organization is for the information and convenience of the public, and does not constitute endorsement, recommendation, or favoring by the United States Department of Justice.
Everett Eugene Miller, Jr. Sentenced to Life Plus 120 Months for Sex Crimes Against A Child and EscapeRead the Press Release
KNOXVILLE, Tenn. – On May 11, 2023, Everett Eugene Miller, Jr., age 56, currently of Sunbright, Tennessee, was sentenced by the Honorable Judge Katherine A. Crytzer, in the United States District Court for the Eastern District of Tennessee at Knoxville.
At trial, Miller was convicted on all counts in the indictment. The indictment charged Miller with Enticement of a Minor to Engage in Sexual Activity, Transportation of a Minor to Engage in Sexual Activity, Felony Offense Involving a Minor by an Individual Required to Register as a Sex Offender, and Escape. Miller was sentenced to life plus 120 months in prison, followed by a lifetime on supervised release. Miller will be required to register with state sex offender registries and comply with special sex offender conditions during his supervised release.
The government’s evidence at trial proved that from July 2019 through January 2020, Miller’s minor niece was living with Miller and his wife. Miller was on the sex offender registry for sexual assaults against other children. Miller bought his niece a secret cell phone, and the two exchanged over 2900 messages. Miller told his minor niece he loved her and only wanted to be with her. Miller further told his niece he would divorce her aunt for her, and they would be married. From December 29, 2019, through January 2, 2020, Miller took his niece on a long-haul trucking run to New Mexico and during the trip raped her multiple times. On August 14, 2020, while incarcerated and awaiting trial, Miller was taken to a local hospital for a procedure where he attempted to escape.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee made the announcement.
The criminal indictment was the result of an investigation by the Federal Bureau of Investigation.
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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Tennessee Man Sentenced to 600 Months for Child Production OffensesRead the Press Release
GREENEVILLE, Tenn. – On May 11, 2023, Cameron Ty Bolyard, 35, of Greeneville, Tennessee, was sentenced to 600 months in federal prison, by the Honorable Clifton L. Corker, in the United States District Court for the Eastern District of Tennessee at Greeneville.
As part of the plea agreement filed with the court, Bolyard pleaded guilty pursuant to a Federal Rule 11(c)(1)(C) plea agreement to counts one and two of an indictment charging him with use of a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct in violation of 18 U.S.C. § 2251 (a) and (e) and being a parent of a minor, knowingly permitted such minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct in violation of 18 U.S.C. § 2251 (b) and (e). Upon his release from prison, Bolyard will be on supervised release for 10 years. Bolyard will be required to register with state sex offender registries and comply with special sex offender conditions during his supervised release.
According to the written plea agreement filed with the court, investigators received multiple CyberTips from the National Center for Missing and Exploited Children where Bolyard uploaded multiple images and videos to his Google Account of child pornography. Multiple images and videos were created by Bolyard where he recorded a minor victim engaged in sexually explicit conduct with Bolyard. Additionally, Bolyard uploaded over a hundred videos and images of child sexual abuse material, unrelated to the minor victim, to his account.
“This 50-year prison sentence sends a clear message that preying upon and sexually victimizing the most innocent and vulnerable victims, our children, will not be tolerated,” said U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee. “We are grateful for the work of the Homeland Security Investigations- Johnson City Office and the Knoxville Police Department’s Internet Crimes against Children Group.”
“This significant sentence is a testament to the outstanding collaboration among HSI and our law enforcement partners, including the Knoxville Police Department, the Internet Crimes Against Children, and the U.S. Attorney’s Office. This investigation into Mr. Bolyard’s criminally abhorrent conduct is a prime example of our commitment to protect the most innocent and vulnerable population from exploitation by predators. No child should ever fall prey to victimization or endure its trauma,” stated HSI Nashville Special Agent in Charge Rana Saoud.
“Our Internet Crimes Against Children Task Force is relentless in its mission to protect innocent kids and expose those who prey on children,” Knoxville Chief of Police Paul Noel said. “This sentence is a reflection of great collaboration with our state and federal partners, and the hard work and dedication of our ICAC investigators and digital forensics analysts. I am grateful to those who are willing to do the unimaginable investigative work necessary to hold these predators accountable for their actions.”
The criminal indictment was the result of an investigation by Homeland Security Investigations- Johnson City Office and Knoxville Police Department’s Internet Crimes against Children Group. This investigation was led by TFO HSI John Williams.
Assistant United States Attorneys Meghan L. Gomez 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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Tennessee Man Sentenced to 600 Months for Child Production OffensesRead the Press Release
GREENEVILLE, Tenn. – On May 11, 2023, Cameron Ty Bolyard, 35, of Greeneville, Tennessee, was sentenced to 600 months in federal prison, by the Honorable Clifton L. Corker, in the United States District Court for the Eastern District of Tennessee at Greeneville.
As part of the plea agreement filed with the court, Bolyard pleaded guilty guilty pursuant to Federal Rule 11(c)(1)(C) plea agreement to counts one and two of an indictment charging him with use of a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct in violation of 18 U.S.C. § 2251 (a) and (e) and being a parent of a minor, knowingly permitted such minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct in violation of 18 U.S.C. § 2251 (b) and (e).
According to the written plea agreement filed with the court, investigators received multiple CyberTips from the National Center for Missing and Exploited Children where Bolyard uploaded multiple images and videos to his Google Account of child pornography. Multiple images and videos were created by Bolyard where he recorded a minor victim engaged in sexually explicit conduct with Bolyard. Additionally, Bolyard uploaded over a hundred videos and images of child sexual abuse material, unrelated to the minor victim, to his account.
“Victimization of children is particularly heinous when sexual predators knowingly exploit the most innocent and vulnerable.” “Our office remains relentless in the pursuit to ensure the safety of our children.” “Anyone who suspects a child is being victimized is urged to contact their local law enforcement agency or child protective services,” said United States Attorney Francis M. Hamilton III.
“This significant sentence is a testament to the outstanding collaboration among HSI and our law enforcement partners, including the Knoxville Police Department, the Internet Crimes Against Children, and the U.S. Attorney’s Office. This investigation into Mr. Bolyard’s criminally abhorrent conduct is a prime example of our commitment to protect the most innocent and vulnerable population from exploitation by predators. No child should ever fall prey to victimization or endure its trauma,” stated HSI Nashville Special Agent in Charge Rana Saoud.
The criminal indictment was the result of an investigation by Homeland Security Investigations- Johnson City Office and Knoxville Police Department’s Internet Crimes against Children Group. This investigation was led by TFO HSI John Williams.
Assistant United States Attorneys Meghan L. Gomez 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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Mark Deakins Convicted of Sexual Abuse of A Child, Using Children to Produce Child Sexual Abuse Material, and Possession of Child Sexual Abuse MaterialRead the Press Release
CHATTANOOGA, Tenn. –On May 11, 2023, Mark Deakins, 63, of Chattanooga, Tennessee, was convicted at trial before the Honorable Charles E. Atchley, Jr., United States District Court Judge for the Eastern District of Tennessee at Chattanooga, of multiple charges involving the sexual abuse of minors.
The defendant was found guilty of these 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, for over 20 years, Deakins raped and sexually assaulted numerous pre-teen and teen boys from 1995 to 2018 in various locations in the Chattanooga, Tennessee area. He also transported a victim across state lines to engage in illegal sexual exploitation and abuse. Deakins secretly recorded his crimes, and the number of child sexual abuse videos and images he possessed numbered in the thousands. After law enforcement agents executed search warrants on his home and computers, they found these images and videos as well as thousands of images of other child sexual abuse material from all over the world.
Deakins committed these crimes while already on the Sex Offender Registry for past convictions.
Sentencing has been scheduled for September 28, 2023, at 10:00 a.m. The defendant faces a mandatory minimum prison term of 45 years and a maximum term of life in prison.
United States Attorney Francis M. Hamilton III said, “The defendant’s conduct was egregious. He preyed on young boys desperate for a male role model. I am thankful for the collaborative effort and hard work of our federal, state, and local law enforcement officers and our prosecutors for seeking justice in this appalling case.”
F.B.I. Special Agent in Charge Joseph E. Carrico said, “Children are among the most vulnerable members of our community. The FBI along with our local, state, and federal partners will continue to meticulously investigate these crimes, which cause irreparable harm and trauma to the victims.”
Law enforcement agencies participating in the joint investigation which led to indictment and subsequent conviction of Mark Deakins included the Federal Bureau of Investigation, 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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Kingsport Woman Sentenced to 21 Months for Lying on ATF Form to Purchase Firearms and Providing Firearms to A FelonRead the Press Release
GREENEVILLE, Tenn. – On May 1, 2023, Tonya Rae Saine, also known as Tonya Rae Bowles, 56, currently of Kingsport, Tennessee, was sentenced to 21 months in prison by the Honorable J. Ronnie Greer, in the United States District Court for the Eastern District of Tennessee at Greeneville.
Saine was found guilty of Making a False and Fictitious Written Statement to a Licensed Dealer of Firearms, in violation of 18 U.S.C. § 922(a)(6) and Disposing of a Firearm to a Convicted Felon, in violation of 18 U.S.C. § 922(d)(1) by a federal jury in December 2022. Following her release from imprisonment, Saine will be on supervised release for 3 years.
According to filed court documents and evidence presented at trial, on September 4, 2021, Saine traveled to the business premises of a Federal Firearms Licensee (“FFL”) in Sevierville, TN. While at the FFLs gun counter, she and another person (a convicted felon) looked at several firearms before selecting two firearms – a pistol and a rifle, to purchase. Saine, who was not prohibited from purchasing a firearm, completed the required paperwork using her information and paid for the two firearms. She also purchased a laser aiming device for the pistol.
Surveillance video from the FFL showed Saine at the FFL’s gun counter handing the firearms to the felon who was accompanying her and, after she completed the purchase, the felon leaving the FFL’s premises while carrying one of the firearms. Saine admitted to law enforcement that she had met the felon while she was a contract employee of the Tennessee Department of Correction, and that the felon was incarcerated on a felony conviction at the prison where she had worked as a nurse. She also admitted that she was in a relationship with the felon, knew he was a felon, and that he had traveled to and from the FFLs premises with her.
Law enforcement also recovered a text message from a cell phone that Saine sent the felon after the purchase of the firearms that said, “I’ve got your gun and stuff in the house.” A cooperating witness testified that they saw the felon with the pistol and were able to recognize the firearm because of the attached laser aiming device and distinctive markings on the firearm.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee; and ATF Special Agent in Charge Marcus S. Watson made the announcement.
The criminal indictment was the result of an investigation by the Kingsport Police Department and ATF. This investigation was led by ATF Task Force Officer Mike Slater.
Assistant United States Attorney B. Todd Martin and Special Assistant U.S. Attorney Blake Watson 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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DEA National Prescription Drug Take Back DayRead the Press Release
KNOXVILLE, Tenn. On Saturday, April 22nd, from 10 a.m. to 2 p.m., the U.S. Drug Enforcement Administration 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 April’s event is DEA’s 23rd nationwide event since its inception 12 years ago. Last spring, Americans turned in nearly 647,163 pounds of prescription drugs at nearly 4,902 sites operated by the DEA and almost 5,000 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, April 22nd, 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 April 22nd 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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Former Department of Energy Contractor Sentenced to 121 Months for Distributing and Possessing Child PornographyRead the Press Release
KNOXVILLE, Tenn. – On April 18, 2023, the Honorable Thomas A. Varlan, United States District Judge for the Eastern District of Tennessee, sentenced David Bryon King, age 57, to serve 121 months in federal prison followed by a lifetime on supervised release for attempted distribution and possessing child pornography. During the time of the offense, King was a contractor working as a fire inspector for the Oak Ridge National Laboratory.
According to the filed plea agreement, King admitted that he distributed child pornography to others in 2022, in violation of 18 U.S.C. § 2522A(a)(2)(B), and possessed child pornography in 2021 and 2022, in violation of 18 U.S.C. § 2252A(a)(5)(B). King was identified as making online payments to individuals believed to be selling child pornography. Agents with the Department of Energy Office of Inspector General interviewed King at his residence. During the interview, King admitted to being in possession of child pornography, specifically on his smartphone. Agents seized the device and obtained a federal search warrant to search the device. Forensic analyses of King’s smartphone uncovered images and videos of child pornography and other evidence linking King to the attempted distribution of child pornography.
“Protecting children and holding perpetrators accountable is a top priority for the U.S. Attorney’s Office and we will continue to work with our law enforcement partners to investigate and prosecute child exploitation cases,” said United States Attorney Francis M. Hamilton III.
“I commend our agents and our partners at the Department of Justice and the U.S. Attorney’s Office for investigating and prosecuting such heinous crimes against children,” said Teri L. Donaldson, Inspector General for the Department of Energy. “Our investigators will continue doing everything they can to identify and investigate instances of child exploitation within the Department. Crimes against children have absolutely no place anywhere, and we will continue working with the Department of Justice and U.S. Attorney’s Offices around the country to investigate and prosecute the offenders.”
The case was investigated by the Department of Energy Office of Inspector General.
Assistant U.S. 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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Andrew Stephen Couch Sentencing to 60 Years for Production of Child PornographyRead the Press Release
KNOXVILLE, Tenn. – On April 13, 2023, Andrew Stephen Couch, 37, currently of Knoxville, Tennessee, was sentenced to 720 months’ imprisonment 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, Couch agreed to plead guilty to an indictment charging him with two counts of production of child pornography in violation of 18 U.S.C. § 2251(a). After his release from imprisonment, he will be on lifetime supervised release. Couch will be required to register with state sex offender registries and comply with special sex offender conditions during his supervised release.
According to the filed plea agreement, in December 2019, after receiving a report that Couch was distributing child pornography, a search warrant was conducted at Couch’s home. Couch’s cellular phone was seized and forensically examined. Located on the cellular phone were multiple videos of child pornography produced by Couch wherein he was engaged in sexually explicit acts with a four-and-a-half-year-old female who was visiting Couch’s home. Also on the cellular phone were thousands of other images and videos of child pornography of unidentified children.
The criminal indictment was the result of an investigation by the Knoxville Police Department, Internet Crimes Against Children Unit and the U.S. Department of Homeland Security, Homeland Security Investigations.
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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Bristol Man Sentenced to 46 Months Imprisonment for Possession of Firearms and Impersonating A Deputy U.S. MarshalRead the Press Release
GREENEVILLE, Tenn. – On April 13, 2023, Bobby Rowe Maggard, Jr., 47, of Bristol, Tennessee, was sentenced to 46 months in prison by the Honorable Clifton L. Corker, in the United States District Court for the Eastern District of Tennessee at Greeneville.
On January 11, 2023, Maggard pled guilty to one count of possession of a firearm by a felon, in violation of 18 U.S.C. §922(g)(3), and one count of impersonating a Deputy U.S. Marshal, in violation of 18 U.S.C. § 912. Upon his release from imprisonment, Maggard will be on supervised release for 3 years.
According to an Agreed Factual Basis filed with the Court on January 11, 2023, in August 2000, Maggard was convicted of the felony offense of Grand Larceny in Tazwell County, Virginia. In 2021, he became employed as a registered bonding agent for a bonding company in east Tennessee. In July 2021, law enforcement began receiving information that a person was representing himself as a Deputy U.S. Marshal, with one incident arising in Sullivan County, Tennessee. Maggard was identified as a suspect. When questioned by law enforcement, Maggard admitted that he was a felon and that he knew it was unlawful for him to possess a firearm. He also admitted that he used a fake Deputy U.S. Marshal’s badge and patch, which he had purchased on the internet, to pose as a Deputy U.S. Marshal when he was securing information from people. He stated that he impersonated a Deputy U.S. Marshal to people in order to “scare them in to telling the truth.” He also admitted to falsely using the identity of a Deputy U.S. Marshal to obtain repair services for an Apple watch. At the time of his questioning, Maggard was on supervised probation in Sullivan County, Tennessee, for Failure to Appear. Law enforcement conducted a search of his residence and recovered eight (8) firearms - three (3) Glock pistols, four (4) AR-style rifles in various calibers, and a 12-gauge tactical shotgun.
This case was the result of an investigation by the Sullivan County Sheriff’s Office, the United States Marshals Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
“The impersonation of a Deputy U.S. Marshal, while armed and after having been convicted of a felony offense, placed the public in danger,” said U.S. Attorney Francis M. Hamilton III. “Our office will vigorously investigate and prosecute those who engage in this conduct.”
“The United States Marshals Service very much appreciates the great work of the U.S. Attorney’s Office, ATF and ATF Task Force Officer Farmer of the Sullivan County Sheriff’s Department for their excellent work on this investigation,” said United States Marshal David Jolley.
“We are pleased with the outcome of this case and the work of our detectives and federal partners. Taking dangerous armed felons off our streets is imperative for the public’s safety,” said Sheriff Jeffrey Cassidy, of the Sullivan County Sheriff’s Office.
Assistant U.S. Attorney B. Todd Martin represented the United States.
This case also was 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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Morristown Man Sentenced to 210 Months Imprisonment for Possession of A Firearm by A FelonRead the Press Release
GREENEVILLE, Tenn. – On April 7, 2023, Robert Lee Allen, Jr., also known as “Skeeter,” 55 of Morristown, Tennessee, was sentenced to 210 months in prison for being a felon in possession of a firearm by the Honorable Clifton L. Corker, in the United States District Court for the Eastern District of Tennessee at Greeneville.
As part of the plea agreement filed with the court, Allen agreed to plead guilty to an indictment charging him with possession of a firearm by a felon, in violation of 18 U.S.C. §922(g)(3). Upon release from his imprisonment, Allen will be on supervised release for 5 years.
As set forth in the plea agreement filed with the court, Allen has prior, violent felony convictions for Second Degree Murder, Aggravated Assault, Aggravated Robbery, and Aggravated Burglary. Allen agreed that, on February 14, 2022, he struck his spouse with a firearm and was arrested the next day for domestic assault. During a search of his vehicle, the firearm he used to assault his spouse was located. The firearm was stolen from Cocke County, TN. Allen admitted that he had acquired the firearm from another felon through a trade of methamphetamine and heroin in exchange for the firearm.
This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
“This sentence sends a powerful message to those with a violent, felony history who continue to arm themselves,” said United States Attorney Francis M. Hamilton III. “This case is part of the Department of Justice’s comprehensive strategy to target and prosecute the most serious offenders who pose the greatest threats to safety and peace within the community.”
“This was extremely great work done by the individuals that took part in this investigation. There is one less criminal off our streets. The ATF will continue to use all of our resources to disrupt the illegal possession of firearms, distribution of narcotics and other acts of violence within our community,” said ATF Special Agent in Charge Marcus Watson.
Assistant U.S. Attorney B. Todd Martin represented the United States.
This case also was 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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Meth Trafficker Sentenced to 292 Months' ImprisonmentRead the Press Release
CHATTANOOGA, Tenn. – On April 7, 2023, Armando Mejia-Almazan, 44, a Mexican National, was sentenced to 292 months in prison by the Honorable Travis R. McDonough, Chief United States District Judge, in the United States District Court at Chattanooga.
As part of the plea agreement filed with the court, Mejia-Almazan agreed to plead guilty to an indictment charging him with one count of conspiracy to distribute 50 grams or more of methamphetamine (actual) and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(A), and 846. After his release from imprisonment, Mejia-Almazan will be on supervised release for five years and may be subject to deportation.
According to court documents and evidence presented at sentencing, Mejia-Almazan, who had previously been removed from the United States and unlawfully returned, distributed more than 50 kilograms of ice methamphetamine to a Chattanooga-based drug trafficking organization. Mejia-Almazan utilized multiple apartments in the Atlanta metro area to facilitate his drug trafficking and acted under the direction of a Veracruz, Mexico-based methamphetamine broker affiliated with the Cartel de Jalisco Nuevo Generacion (“CJNG”).
“The United States Attorney’s Office is committed to targeting the ongoing threat to our communities from cartel-based drug traffickers,” said United States 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.”
I'm very proud of the work done by the dedicated men and women of DEA in this case," said Special Agent in Charge J. Todd Scott, head of Drug Enforcement Administration's ("DEA") Louisville Field Division. "Mr. Mejia-Almazan had tentacles reaching down into Mexica, straight to the Sinaloa and Jalisco New Generation Cartels, the two ruthless, violent criminal organizations that are intentionally poisoning Americans to drive addiction."
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.
The Appalachia HIDTA mission is to use a multi-disciplinary approach to deal with the ongoing threats to public health and safety, particularly as it regards prescription drug diversion, the emerging threat of heroin, as well as the continued threats of marijuana, cocaine, methamphetamine, and synthetic drugs. The Appalachia region is arguably the epicenter of this crisis and requires unprecedented multi-disciplined cooperation to effectively address the many faceted health and public safety problems that result from this daunting threat. The Appalachia HIDTA will serve as the conduit for this cooperation.
Law enforcement agencies participating in the joint investigation which led to the indictment and subsequent conviction of Mejia-Almazan, included DEA Chattanooga Resident Office, DEA Atlanta Field Division, Federal Bureau of Investigation Chattanooga Resident Agency, Chattanooga Police Department, and Hamilton County Sheriff’s Office. Numerous agencies from the Appalachia High Intensity Drug Trafficking Area (HIDTA) Task Force assisted in the investigation.
Assistant U.S. Attorney Kevin T. Brown represented the United States.
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Federal Jury Convicts Timothy Carver on Production of Child PornographyRead the Press Release
GREENEVILLE, Tenn. – On April 7, 2023, following a four-day trial in the United States District Court, Greeneville, Tenn., a jury convicted Timothy Carver, 53, of Jonesborough, Tenn., 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).
Sentencing is set for August 10th at 9:00am before the Honorable Clifton L. Corker, in United States District Court for the Eastern District of Tennessee at Greeneville. Carver faces a minimum mandatory 15 years’ imprisonment for production of child pornography, a minimum mandatory five years for distribution of child pornography. Carver will also be subject to lifetime supervision and placement on the sex offender registry.
Evidence presented at trial proved the defendant videoed and photographed himself engaged in sexual acts with a 2-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.
U.S. Attorney Francis M. Hamilton, III of the Eastern District of Tennessee, made the announcement.
The Federal Bureau of Investigation, 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 assisted 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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Knoxville Dentist Sentenced to Prison for Conspiring to Commit Health Care FraudRead the Press Release
KNOXVILLE, Tenn. – On March 10, 2023, Clarence (“Buzz”) Nabers, 56 years old, was sentenced to six months in prison followed by six months of home detention by the Honorable Katherine A. Crytzer, in the United States District Court for the Eastern District of Tennessee at Knoxville. Judge Crytzer also ordered Dr. Nabers to serve one year on supervised release, pay restitution in the amount of $249,600.02, and pay a fine of $22,128.
Dr. Nabers, a Tennessee licensed dentist, pleaded guilty to conspiring to commit health care fraud, in violation of 18 U.S.C. §§ 371 and 1347.
As set forth in the written plea agreement filed with the court, during the time of the conspiracy, which began on an unknown date and lasted until at least November 1, 2018, Dr. Nabers conspired to submit more than 6,700 fraudulent claims to three health care benefit programs, resulting in a loss amount to those programs of $249,600.02.
Those fraudulent claims, which were submitted using Dr. Nabers’s National Provider Identifier number, falsely represented that Dr. Nabers had either personally performed or supervised various dental procedures in his office, including but not limited to Oral Evaluations, Oral Evaluations for Patients under 3 Years of Age, and Comprehensive Periodontal Evaluations. These procedures are required to be performed or supervised by a dentist, and not by a dental hygienist or dental assistant. Dr. Nabers admitted that he had not, in fact, personally performed or supervised the performance of those procedures because he was not physically present at the office when they were performed. Instead, the procedures were performed by dental hygienists or dental assistants when the defendant was not physically present in the office.
This case is the result of an investigation conducted by the Federal Bureau of Investigation.
Former Assistant United States Attorney T.J. Harker, and current Assistant United States Attorney William A. Roach, Jr., prosecuted the case.
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Couple Sentenced for Conspiracy, Wire Fraud, and Major Fraud Against the United StatesRead the Press Release
CHATTANOOGA, Tenn. – Today, Ricky and Katrina Lanier, 55 and 49, both of LaGrange, N.C., were sentenced by the Honorable Travis McDonough, Chief United States District Court Judge for the Eastern District of Tennessee at Chattanooga, to serve federal prison terms of 48 months and 24 months, respectively, for conspiracy to commit wire fraud, wire fraud, and major fraud against the United States. Following their incarceration, the Laniers will each be on supervised release for a period of one year. Chief Judge McDonough ordered forfeiture of the couple’s bank accounts and deferred a ruling on a money judgement until a later date.
The couple were found guilty of these offenses, in violation of 18 U.S.C. §§ 1349, 1343, and 1031 on July 29, 2022, following a two-week jury trial in U.S. District Court. According to evidence presented at trial, the Laniers conspired from 2005 to 2013 to defraud the United States government through a scheme to fraudulently obtain federal contracts intended to be awarded to businesses lawfully participating in the Department of Veterans Affairs’ (VA) Service-Disabled Veteran-Owned Small Business (SDVOSB) program and the Small Business Administration’s (SBA) 8(a) Business Development program. They falsely represented that JMR Investments and Kylee Construction were eligible for these programs. Their actions also deprived legitimate service-disabled veteran and minority-owned businesses from obtaining government contracts on which they were eligible to bid.
Ricky Lanier, who had previously owned and operated an 8(a) business receiving government contracts, became ineligible to participate in the 8(a) program after that business graduated from that program in 2008. Lanier used a long-time friend and service-disabled veteran as the purported owner of Kylee Construction, falsely representing that the friend was involved in the daily management of the business, even while the friend was working for a government contractor in Afghanistan. The Laniers used a minority-owned business run by Ricky Lanier’s college roommate, JMR Investments, as a front to obtain construction contracts from the National Park Service and other federal agencies under the 8(a) program, misrepresenting the friend’s involvement in the management and operation of the business. The scheme also involved sub-contracting most of the work on the contracts in violation of program requirements. As part of the scheme, the Laniers opened and controlled bank accounts into which government money was deposited, and they used those accounts to pay for extravagant vacations; monthly payments on a personal private airplane; a Mercedes Benz; mortgage payments for their personal residence; purchases of additional real estate; and purchases of personal property such as shoes, clothing, food, and souvenirs while on vacation.
The Laniers also defrauded the National Park Service in connection with a contract to replace a wastewater treatment facility at the Tremont Institute in the Great Smoky Mountains National Park, falsely representing subcontractor costs by over $400,000, resulting in the award of a $1.1 million contract for work on the project that was actually performed by a subcontractor for only $550,000. The Laniers further fraudulently obtained a $1.3 million construction contract at the James H. Quillen VA Medical Center, which had been set aside for service-disabled veteran owned businesses.
As a result of the false representations, Kylee Construction was awarded over $5 million in government contracts and JMR Investments was awarded over $9 million in government contracts. The Laniers received almost $3 million in financial benefit from the scheme.“The defendants’ conduct was especially egregious,” said United States Attorney Francis M. Hamilton III. “Of course, the dollar value of the government contracts was quite high, and the defendants obtained enormous personal gains to maintain a lavish lifestyle. More importantly, not only did the defendants steal from the United States, they stole opportunities from scores of honest deserving entities such as legitimate service-disabled veteran-owned businesses who are trying to making a living in the civilian sector after having served the nation honorably.”
“Conspiring to fraudulently obtain millions of dollars in government contracts from programs designed to benefit service-disabled veteran business owners steals opportunities from the deserving and lines the pockets of the greedy. The VA OIG remains committed to diligently pursuing these cases in an effort to maintain the integrity of VA programs,” said Special Agent in Charge Kim R. Lampkins of the VA Office of Inspector General’s Mid-Atlantic Field Office. “The VA OIG thanks the US Attorney’s Office and our law enforcement partners for their joint efforts to achieve justice in this case.”
“Illegally obtaining federal contracts steals taxpayer dollars and opportunities from the nation’s small business community,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “OIG is committed to rooting out bad actors and protecting the integrity of SBA programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
Special Agent in Charge Katherine Balestra, U.S. Department of Interior OIG, recognized the efforts of the investigative team in protecting the Service-Disabled Veteran Owned Small Business program. "These investigations are so important to ensure that these federal contracts go to the individuals for whom they are intended," Balestra said.
Law enforcement agencies participating in the joint investigation which led to indictment and subsequent conviction of Ricky and Katrina Lanier included the Veterans Affairs Office of Inspector General (VA OIG), Department of the Interior Office of Inspector General (DOI OIG), and Small Business Administration’s Office of Inspector General (SBA OIG), with assistance from the U.S. Secret Service.
Assistant U.S. Attorneys Steven S. Neff, Perry H. Piper, and Anne-Marie Svolto represented the United States.
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David Apps Pleads Guilty to Defrauding Broad Street United Methodist ChurchRead the Press Release
CHATTANOOGA, Tenn. - On February 27, 2023, David Michael Apps, 50 of Chattanooga, Tennessee, pleaded guilty to an information charging him with wire fraud in violation of 18 U.S.C. 1343. Apps is scheduled to be sentenced on July 27, 2023 at 2:00 p.m., before the Honorable Charles E. Atchley, Jr., in the United States District Court for the Eastern District of Tennessee at Chattanooga.
According to court documents filed by the United States, from 2014 through 2021, Apps, the business manager of Broad Street United Methodist Church in Cleveland, Tennessee, devised a scheme in which he used an official church credit card to pay for personal expenses in excess of $1.5 million dollars. Some of these expenses included payment for personal travel, automobiles, medical bills for family members, boat/watercraft and marina fees, and firearms, none of which was related to church business. 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. The specific count of conviction involves the use of the church credit card to buy a luxury watch from an expensive retailer in California for $3,711.
Apps faces a possible sentence of up to 20 years’ imprisonment on the wire fraud count, along with significant fines, restitution, and forfeiture of property.
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.
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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Tennessee Man Sentenced to 70 Months for Multiple Bank RobberiesRead the Press Release
KNOXVILLE, Tenn.– On February 10, 2023, Robert Z. Whipple, III, 50, currently of Crossville, Tennessee, was sentenced to 70 months in prison 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, Whipple pleaded guilty to an indictment charging him with three counts of bank robbery in violation of 18 U.S.C. § 2113(a). Following his release from prison, Whipple will be on three years of supervised release, and he will be required to pay restitution to the victims.
According to the written plea agreement filed with the court, Whipple robbed a Home Federal Bank, First Horizon Bank, and Fifth Third Bank, all of which were in West Knoxville and located within the Eastern District of Tennessee. Whipple robbed one bank each day from March 5 to March 7, 2020, and he took approximately $6,950 in total. Whipple was finally apprehended on the evening of March 7, 2020, at a Red Roof Inn hotel in Knoxville. During a search of Whipple’s hotel room and vehicle, law enforcement located over $4,000 in cash and several items that Whipple used to commit the bank robberies, including a wig and a demand note.
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.
The criminal indictment was the result of a joint investigation by the Knoxville Police Department and Federal Bureau of Investigation (FBI). This investigation was led by FBI Special Agent Wesley Leatham.
Assistant United States Attorney LaToyia Carpenter represented the United States at sentencing.
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Leslie Bethea Sentenced to 78 Months for PPP Loan Fraud and Violating Supervised ReleaseRead the Press Release
GREENEVILLE, Tenn. – On February 6, 2023, Leslie D. Bethea, 30, currently of Surgoinsville, TN, was sentenced to 78 months in federal prison by the Honorable J. Ronnie Greer, in the United States District Court for the Eastern District of Tennessee at Greeneville.
On June 14, 2022, the Federal Grand Jury indicted Bethea for conspiracy to commit wire fraud, wire fraud, money laundering, and making false statements. Bethea agreed to plead guilty to one count of wire fraud in violation of 18 U.S.C. § 1343 and one count of making a false statement to her United States probation officer in violation of 18 U.S.C. § 1001. Following Bethea’s imprisonment, she will be on supervised release for three years. Bethea was also ordered to pay restitution totaling $20,805 on account of her theft.
According to filed court documents, Bethea was previously sentenced to prison for 24-months for wire fraud in United States v. Leslie Bethea, Case No. 2:18-CR-25 in the Eastern District of Tennessee. Upon her release from the Bureau of Prisons on October 8, 2020, Bethea began serving a term of supervised release that required her to submit truthful monthly reports to her supervising probation officer.
On March 29, 2021, Bethea obtained a fraudulent Payroll Protection Program (“PPP”) loan in the amount of $20,805. The fraudulent PPP loan application stated that Bethea had made $99,835 during calendar year 2019 (a year when Bethea was in prison), falsely claimed that Bethea had not been convicted of any fraud offenses during the past five years and attached a fraudulent income tax Schedule C as proof of her claim that she made $99,835.
A PPP loan was approved based on Bethea’s fraudulent application, and Bethea received $20,805 on April 15, 2021. Bethea used a portion of the fraudulent loan proceeds to pay for a five-day junket at a resort in Sunny Isles Beach, Florida. She also used some of the fraudulent loan proceeds to pay for an elective cosmetic surgical procedure in Florida while there.
Upon her return to Tennessee, Bethea then submitted a false monthly supervision report to her probation officer for the month of April 2021. In that report, Bethea falsely claimed she had only received $200 during the month of April, falsely claimed she had no expenses of more than $500 (even though she paid more than that amount to the Sunny Isles Beach resort and the plastic surgery practice while in Florida), and falsely stated that she had not travelled out of the state of Tennessee during the month of April 2021.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee; and Resident Agent in Charge Jason B. Brown of the United States Secret Service made the announcement.
This prosecution was the result of an investigation by the United States Secret Service. This investigation was led by Senior Special Agent Thomas Whitehead.
Assistant United States Attorney Mac D. Heavener represented the United States.
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Ohio Man Sentenced to 65 Months for Vehicular Homicide and AssaultRead the Press Release
KNOXVILLE Tenn. – On February 2, 2023, Bryce Allen Axline, 21, of Columbus, Ohio, was sentenced to 65 months in federal prison for vehicular homicide and vehicular assault by the Honorable Thomas A. Varlan, in the United States District Court for the Eastern District of Tennessee at Knoxville. Axline was ordered to pay $5,000 in restitution and, upon his release from prison, he will be on federal supervised release for three years.
According to filed court documents, Axline's convictions resulted from a single-vehicle accident in the Great Smoky Mountains National Park on the night of June, 7, 2021. Axline was intoxicated and driving recklessly when he crashed his car into an embankment on the Spur. His two female passengers, both 19 years of age, were seriously injured during the crash. One victim suffered life-altering injuries, and the other victim died shortly after the accident. Axline was released from the hospital the following day after being treated for minor injuries. He was interviewed by the National Park Service as his home and admitted that he was driving the vehicle when the accident occurred. Based on an analysis of the vehicle's air bag module, the National Park Service determined that the vehicle was fully accelerated and traveling at 90 miles per hour just seconds before the accident occurred.
The surviving victim provided a victim impact statement to the court explaining how the accident has affected her life. The deceased victim’s family members also provided victim impact statements and were present in court for the sentencing hearing. The deceased victim’s father addressed the court on behalf of the family.
The investigation was led by the National Park Service, Investigative Service Branch.
Assistant United States Attorney LaToyia T. Carpenter represented the United States.
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Arrest of Christopher D. Bruey for Traveling with A Minor Across State Lines for Criminal Sexual ActivityRead the Press Release
KNOXVILLE, Tenn. - Christopher D. Bruey (“Bruey”), was arrested today in Knoxville, Tennessee by agents of the Federal Bureau of Investigation (“FBI”) on charges of transporting a minor in interstate commerce with the intent to engage in an unlawful sexual activity.
Bruey made an initial appearance on February 1, 2023, in United States District Court in Knoxville, before the Honorable Jill E. McCook, United States Magistrate Judge. A trial will be scheduled later in 2023.
The details of the charges are outlined in the complaint and supporting affidavit which are on file as public records in the United States District Court for the Eastern District of Tennessee.
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.
Assistant U.S. Attorney Alan S. Kirk will represent the United States in this case.
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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Walgreen Co. Pays $7 Million to Settle Allegations Under the False Claims ActRead the Press Release
KNOXVILLE, Tenn. – Walgreen Co. (Walgreens) has paid $7 million to the United States and the State of Tennessee to resolve allegations that it violated the False Claims Act by submitting claims to TennCare—the Medicaid program for the State of Tennessee—and knowingly retaining overpayments for specialty Hepatitis C medications dispensed to TennCare enrollees who did not meet TennCare’s clinical criteria for coverage and payment.
Walgreens operates retail pharmacies throughout Tennessee. TennCare pays prescription drug benefits for a variety of covered prescription drugs, including drugs prescribed for enrollees with Hepatitis C. Prior to 2019, TennCare required prior authorization based on clinical eligibility criteria related to disease severity and substance use before approving coverage for certain Hepatitis C direct-acting antiviral (DAA) medications. The False Claims Act prohibits a pharmacy from knowingly submitting claims for payment for medications dispensed to patients who do not meet Medicaid coverage and payment requirements, and from knowingly retaining payments that were improperly made in violation of such requirements.
In a complaint filed with the United States District Court in May 2021, the United States and the State of Tennessee alleged that, from October 2014 through December 2016, a former pharmacist and store manager at Walgreens’ specialty pharmacy in Kingsport, Tennessee falsified prior authorization requests and supporting clinical records for 65 TennCare enrollees who failed to meet TennCare prior authorization requirements for the DAAs. The complaint further alleged that Walgreens improperly billed TennCare for DAAs dispensed to the TennCare enrollees based on the falsified requests, and that Walgreens knowingly retained the resulting overpayments after the misconduct of its former store manager came to light.
As part of the settlement, the parties filed a joint stipulation of dismissal with the United States District Court, dismissing the complaint.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee made the announcement.
Assistant U.S. Attorneys Robert C. McConkey, III and Joseph C. Rodriguez represented the United States. Assistant Attorneys General David Rudolph and Tony Hullender represented the State of Tennessee.
Members of the public are reminded that the claims settled by this agreement are allegations only; there has been no determination of liability, and Walgreens does not admit liability for the allegations.
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Arrest of Richard D. Hines, Jr. for Bank Robbery and Brandishing of A FirearmRead the Press Release
KNOXVILLE, Tenn. Richard D. Hines, Jr. (“Hines”), was arrested today in Knoxville, Tennessee by agents of the Federal Bureau of Investigation (“FBI”) on federal criminal charges of bank robbery and brandishing a firearm in furtherance of a crime of violence.
An initial appearance is scheduled for 3:00 p.m., January 25, 2023, in United States District Court in Knoxville, before the Honorable Jill E. McCook, United States Magistrate Judge.
The details of the charges are outlined in the complaint and supporting affidavit, which are on file as public records in the United States District Court for the Eastern District of Tennessee.
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.
Assistant U.S. Attorney Alan S. Kirk will represent the United States in this case.
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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Federal Jury Convicts DeShawn Whited of Multiple Hobbs Act Robberies, Carjacking, and Firearms OffensesRead the Press Release
KNOXVILLE, Tenn. – On January 18, 2023, a federal jury convicted DeShawn Whited, 25, of Knoxville, Tennessee, of four counts of Hobbs Act Robbery, one count of Attempted Hobbs Act Robbery, one count of carjacking, four counts of brandishing a firearm in furtherance of a crime of violence, and one count of felon in possession of a firearm, following a four-day trial. The Honorable Katherine A. Crytzer, United States District Judge, presided over the trial. Whited faces a sentence of over 100 years in prison.
The armed robberies and the armed carjacking all occurred in Knoxville between January 12th, 2021, and January 20th, 2021. The evidence presented at trial included witness testimony, surveillance footage from multiple businesses across the Knoxville area, and physical, forensic and digital evidence, including items of clothing, firearms, cell phone information, and DNA.
“This prosecution is part of the Department of Justice’s comprehensive strategy to reduce violence and increase safety in our community by aggressively prosecuting criminals who engage in violent crime,” said United States Attorney Francis M. Hamilton III.
“The collaborative effort between the FBI and the Knoxville Police Department ensured this defendant was brought to justice and will no longer be able to threaten or harm the citizens and businesses in our community. We will continue to aggressively seek out those who prey upon innocent victims and hold them accountable,” said FBI Special Agent in Charge Joseph E. Carrico.
“Preventing violent crime and addressing it after it occurs will always be the top priority of the Knoxville Police Department. I am proud of the many members of our department who were involved in this investigation from the beginning and helped see it through to this conclusion. Their efforts and contributions ensured the removal of a violent individual from the streets of Knoxville,” said Chief Paul Noel, Knoxville Police Department.
Assistant U.S. Attorneys Alan S. Kirk and Brent N. Jones represented the United States at trial.
Law enforcement agencies participating in the joint investigation and prosecution of Whited include the Federal Bureau of Investigation (FBI) Safe Streets Task Force and the Knoxville Police Department’s Violent Crime Unit and Organized Crime Unit, as well as Knoxville Police Department Patrol Officers and Forensic Crime Scene Technicians.
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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Jeremy Smallwood Sentenced to Life Imprisonment for Firearms and Drug OffensesRead the Press Release
GREENEVILLE, Tenn. – On January 12, 2023, Jeremy Smallwood, 38, of Kingsport, Tennessee, was sentenced to life imprisonment in federal prison, by the Honorable Clifton Corker, in the United States District Court for the Eastern District of Tennessee at Greeneville.
Following a three-day trial, ending on August 25, 2022, Smallwood was convicted of possession with the intent to distribute heroin, in violation of 21 U.S.C. § 841(a)(1); possession with the intent to distribute marijuana, in violation of 21 U.S.C. § 841(a)(1); possession of a firearm in furtherance of a drug trafficking offense, in violation of 18 U.S.C. § 924(c)(1)(A); and three counts of knowing possession of a firearm by a convicted felon, in violation of 18 U.S.C. § 922(g)(1).
The evidence presented at trial demonstrated that Smallwood, who had previously been convicted of multiple felony offenses, possessed firearms on three separate occasions. Additionally, at the time of his arrest by Sullivan County officers on August 17, 2020, he was in possession of not only two firearms but also heroin and marijuana that he intended to distribute.
The defendant qualified as an armed career criminal, which requires a minimum of 15 years up to life imprisonment, and was also designated a career offender under the federal sentencing guidelines. In determining the sentence, Judge Corker found that the defendant had obstructed justice by threatening witnesses with violence. The Court’s sentence reflected the defendant’s extensive criminal history, the seriousness of the offenses of conviction, and the need to protect the public from the dangers posed by this defendant.
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 Sullivan County Sheriff’s Office, Kingsport Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorneys J. Gregory Bowman and Thomas McCauley 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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Two Tennessee Men Arrested for Planning Attacks on Law Enforcement Personnel and the FBI’s Knoxville Field OfficeRead the Press Release
A criminal complaint was unsealed today charging Edward Kelley, 33, of Maryville, Tennessee, and Austin Carter, 26, of Knoxville, Tennessee, with conspiracy, retaliating against a federal official, interstate communication of a threat, and solicitation to commit a crime of violence. Kelley and Carter made their initial appearance in federal court today in Knoxville before U.S. Magistrate Judge Jill E. McCook. Both defendants have been detained. Carter has a detention hearing scheduled for Dec. 21.
According to court documents, Kelley, who is facing charges in U.S. District Court for the District of Columbia related to his assault on a law enforcement officer during the breach of the Capitol on Jan. 6, 2021, obtained a list of law enforcement personnel who participated in that criminal investigation. In conversations with a cooperating witness, Kelley and Carter discussed collecting information and plans to kill the individual law enforcement personnel on the list that included an attack on the FBI’s Knoxville, Tennessee Field Office.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Francis M. (Trey) Hamilton III for the Eastern District of Tennessee and Assistant Director Robert R. Wells of the FBI’s Counterterrorism Division made the announcement.
The FBI is investigating the case.
Assistant U.S. Attorneys Casey Arrowood and Kyle Wilson for the Eastern District of Tennessee, and Trial Attorneys David Smith and Jacob Warren of the National Security Division’s Counterterrorism Section are prosecuting the case.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Jack Vicars Sentenced to 27 Months for Embezzling Nearly $350,000Read the Press Release
GREENEVILLE, Tenn. – On December 15, 2022, Jack D. Vicars, 49, currently of Bluff City, TN, was sentenced to 27 months in federal prison by the Honorable Clifton L. Corker, in the United States District Court for the Eastern District of Tennessee at Greeneville.
As part of the plea agreement filed with the court, Vicars agreed to plead guilty to an information charging him with one count of wire fraud in violation of 18 U.S.C. § 1343 and one count of subscribing a false tax return in violation of 26 U.S.C. § 7206(1). Following Vicars imprisonment, he will be on supervised release for three years. Vicars was also ordered to pay restitution totaling $344,650.00 on account of his theft and $33,699.44 on account of unpaid taxes.
According to filed court documents, Vicars began working as a project manager for a large construction company in Johnson City, TN, and by 2018, he was promoted to the position of vice president. As part of his position and duties, he routinely oversaw projects and reviewed and approved invoices submitted by subcontractors working on those projects. Eventually, Vicars formed his own company and began submitting fraudulent invoices from his company for fictitious work that was not performed. Vicars would then use his position and authority to approve those invoices, resulting in payments issued by his employer to Vicars’ company. Vicars then used the money he stole to pay for personal expenses like his personal credit cards. The fraud took place over a period spanning from 2016 through February 2021. In total, Vicars stole $344,650 from his employer. Vicars also filed a false tax return in 2019, in which he failed to disclose money he had stolen, resulting in understated income and an unpaid tax liability of $33,699.14.
This prosecution was the result of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. This investigation was led by FBI Special Agent Reanna O’Hare and IRS CI Special Agent Jimmy Cline.
Assistant United States Attorney Mac D. Heavener represented the United States.
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Jamaal Parker Sentenced to 290 Months' Imprisonment on Drug Trafficking and Firearm ChargesRead the Press Release
CHATTANOOGA, Tenn. – On December 2, 2022, Jamaal Parker, also known as “MoneyMaal,” 38, of Chattanooga, was sentenced to 290 months in prison by the Honorable Travis R. McDonough, Chief United States District Judge, in the United States District Court at Chattanooga. Parker was ordered to forfeit $21,289.04 in drug proceeds to the United States. Following his imprisonment, Parker will be on supervised release for a period of five years.
On June 8, 2022, following a two-day jury trial, Parker was convicted of conspiracy to distribute 5 kilograms or more of cocaine and 28 grams or more of cocaine base (“crack”), maintaining and using a drug premise, and possession of a firearm in furtherance of drug trafficking, in violation of Title 21 U.S.C. §846 and 856, and Title 18 U.S.C. §924(c).
According to court documents and evidence presented at trial and sentencing, Parker and others trafficked kilogram quantities of cocaine from a source of supply in Atlanta, Georgia, and distributed cocaine and cocaine base from a residence on Hoyt Street in Chattanooga, Tennessee. The investigation culminated with the March 2019 arrest of Parker, in which he led law enforcement on a high-speed pursuit and was ultimately found in possession of 4 kilograms of cocaine and a loaded firearm.
“This investigation and prosecution were the result of a collaborative effort by federal, state, and local law enforcement,” said U.S. Attorney Francis M. Hamilton III. “The United States Attorney’s Office will continue to work with our law enforcement partners to target dangerous drug traffickers and stop the flow of illegal drugs into our communities.”
“This case shows that people like Mr. Parker and others like him, who undermine the health and safety of our communities by selling poison and preying on the weak, will eventually meet justice,” said Todd Scott, Special Agent in Charge of DEA’s Louisville Division. “I’m proud of the hard work done by my agents and our law enforcement counterparts on this case; Chattanooga is safer today because of their efforts.”
This case 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 conviction of Parker, included the DEA Chattanooga Resident Office, DEA Atlanta Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives Chattanooga Field Office, Chattanooga Police Department, and Georgia State Patrol. Numerous agencies from the Appalachia High Intensity Drug Trafficking Area (HIDTA) Task Force assisted in the investigation.
Special Assistant U.S. Attorney Kevin T. Brown and Assistant U.S. Attorney Scott Winne represented the United States.
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U.S. Attorney's Office and Federal Partners Receive National Investigation of the Year Award from the National Health Care Anti-Fraud AssociationRead the Press Release
KNOXVILLE, Tenn.– The United States Attorney’s Office for the Eastern District of Tennessee announces that members of its staff and participating federal partners received a national commendation for their work in Operation HealthWrong, a long-term, multi-defendant health care fraud prosecution. At its annual conference, the National Health Care Anti-Fraud Association (“NHCAA”) selected Operation HealthWrong as its nationwide Investigation of the Year.
NHCAA’s mission is to protect and serve the public interest by increasing awareness and improving the detection, investigation, civil and criminal prosecution, and prevention of health care fraud and abuse. Each year, the organization issues a national award for the Investigation of the Year and recognizes award recipients at its annual training conference. This year, the successful investigation and prosecutions of multiple defendants arising from Operation HealthWrong received the award.
Operation HealthWrong, a long-term investigation of a telemarketing and pharmacy scheme, resulted in the indictment of seven individuals (including a medical doctor and two pharmacists) and related organizations they controlled. All but one of the individuals entered guilty pleas to offenses related to the investigation, and a jury found the remaining defendant, Peter Bolos, guilty of conspiracy to commit health care fraud, mail fraud, and criminal misbranding following a month-long trial last year in the United States District Court in Greeneville, Tennessee.
In May 2022, the Honorable J. Ronnie Greer imposed sentences in the case that ranged from 14 years in federal prison to probation. The Court also ordered over $100 million in restitution and forfeiture, and the United States recovered over $26 million at or prior to the completion of sentencings. Additional details about individuals prosecuted, and the sentences imposed, can be found in the following press releases: Bolos sentencing and Bolos defendants sentencing.
NHCAA recognized the following members of the United States Attorney’s Office for the Eastern District of Tennessee for their work on the case: former Assistant United States Attorney T.J. Harker, Assistant United States Attorney Mac D. Heavener, Legal Assistants Barbra Pemberton and April Denard, and IT Specialist Bryan Brandenburg.
Federal partners receiving recognition included the Department of Justice Consumer Protection Branch (former Assistant Director John Claud and Trial Attorney David Gunn), the United States Department of Health and Hunan Services, Office of Inspector General (Supervisory Special Agent Robert Turner), the United States Department of Homeland Security, Homeland Security Investigations (Special Agent John Lyons), the Federal Bureau of Investigation (Special Agent Reanna O’Hare and Financial Analyst LeAnn Lanz), the United States Food and Drug Administration, Office of Criminal Investigations (Special Agent Brian Kriplean), the United States Office of Personnel Management, Office of Inspector General (Supervisory Special Agent Wayne VanVarick), and the United States Postal Service, Office of Inspector General (Special Agent Timothy Jones).
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Kingsport Man Found to Be A Career Criminal and Sentenced to 264 Months Imprisonment for Possession of A FirearmRead the Press Release
GREENEVILLE, Tenn. – On November 17, 2022, Phillip Thomas Green, 36, of Kingsport, Tennessee, was sentenced to 264 months in prison by the Honorable Clifton L. Corker, in the United States District Court for the Eastern District of Tennessee at Greeneville.
On June 22, 2022, following a 2-day jury trial, a federal jury found Green guilty of being a felon in possession of a firearm in violation of 18 U.S.C. § 922(g)(1). During the sentencing proceeding, Judge Corker found Green to be an Armed Career Criminal based on his lengthy, criminal history, which subjected Green to a mandatory minimum of 180 months’ imprisonment. After his incarceration, Green will be on supervised release for a period of five years.
According to court documents and evidence presented at trial, Green has ten prior felony convictions, including five felony drug convictions. The evidence further showed that on August 16, 2019, officers with the Kingsport Police Department responded to a disturbance on Park Street in Kingsport. They learned that Green had vandalized a vehicle and then left the scene. The officer also learned that Green had an outstanding arrest warrant. A short time later, the officer responded to a report of a suspicious male on Highland Street, which is near Park Street. The description of the male matched the one given of Green, and the officer responded back to the Park Street location. Green was found in the driveway of the Park Street residence. When confronted by the officer, Green fled the scene on foot. He was apprehended in the backyard of a nearby residence. After being taken into custody, Green was found to have a loaded Taurus, .380 caliber handgun.
“This investigation and prosecution was a part of the Department of Justice’s comprehensive strategy to combat and reduce violence in our local communities by targeting dangerous individuals who unlawfully possess firearms,” said U.S. Attorney Francis M. Hamilton III. “We will continue to work with our local and federal partners to remove firearms from prohibited individuals.”
“Armed Career Criminals are one of the greatest threats to our communities. These individuals show total disregard of the law by repeatedly committing many of the same offenses, which in many incidents, include violent crime,” said Bureau of Alcohol, Tobacco, and Firearms (“ATF”) Special Agent in Charge Mickey French. “The ATF, along with our local, state, and federal law enforcement partners, will continue to investigate, apprehend, and charge the individuals who knowingly and willingly continue to break the law.”
This case was the result of an investigation by the Kingsport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Assistant U.S. Attorney B. Todd Martin 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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Bradley County Man Sentenced to 20 Years in Prison for Methamphetamine Trafficking and Firearm OffensesRead the Press Release
CHATTANOOGA, Tenn. – On November 10, 2022, Matthew Moore, 40, of Bradley County, Tennessee, was sentenced to 240 months by the Honorable Travis R. McDonough, in the United States District Court for the Eastern District of Tennessee at Chattanooga.
Moore agreed to plead guilty to an indictment charging him with one count of conspiring to distribute 50 grams or more of methamphetamine, in violation of 21 U.S.C. §§ 841 and 846; one count of possessing with intent to distribute 5 grams or more of methamphetamine, in violation of 21 U.S.C. § 841; and one count of possessing a firearm in furtherance of a drug-trafficking crime, in violation of 18 U.S.C. § 924(c). Following his term of imprisonment, Moore will be on supervised release for five years.
According to filed court documents, Moore admitted to selling or arranging the sale of methamphetamine and fentanyl. In December 2019, for example, law enforcement learned that a drug courier would be delivering multiple kilograms of ice methamphetamine to Moore at his Bradley County home. Police intercepted the drug courier and found more than two kilograms of methamphetamine. Police also searched Moore’s residence and found, among other things, more than $66,000 in cash, at least 400 fentanyl pills, and other drug paraphernalia. Police also found crossbows and more than 145 firearms.
As part of Moore’s sentence, the court ordered that he pay a $50,000 money judgment and forfeit to the United States the firearms, which include multiple handguns, shotguns, and rifles; a sawed-off shotgun with ornamental woodworking; a Chinese SKS carbine; and a 40 mm M203 grenade launcher.
The criminal indictment was the result of an investigation led by the United States Drug Enforcement Administration, in coordination with the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Bradley County Sheriff’s Office; the 10th Judicial District Drug Task Force; and the Cleveland Police Department.
Assistant United States Attorneys Kyle Wilson and Joe DeGaetano 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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U.S. Attorney's Office for the Eastern District of Tennessee Announces $564,767 in Department of Justice Grant Funding to the Knoxville Police Department to Support the Protection of ChildrenRead the Press Release
KNOXVILLE, Tenn. — United States Attorney Francis M. Hamilton III of the Eastern District of Tennessee announced today $564,767 in Department of Justice grant funding to support the Knoxville Police Department, Internet Crimes Against Children (ICAC) Task Force.
The Internet Crimes Against Children Task Force Program (ICAC program) helps state and local law enforcement agencies develop an effective response to technology-facilitated child sexual exploitation and Internet crimes against children. This help encompasses forensic and investigative components, training and technical assistance, victim services, and community education. The grant was awarded to the Knoxville Police Department, Internet Crimes Against Children Task Force.
The program was developed in response to the increasing number of children and teenagers using the Internet, the proliferation of child sexual abuse images available electronically, and heightened online activity by predators seeking unsupervised contact with potential underage victims. OJJDP created the ICAC Task Force Program under the authority of the fiscal year (FY) 1998 Justice Appropriations Act, Public Law 105–119. The Providing Resources, Officers, and Technology to Eradicate Cyber Threats to Our Children Act ("the PROTECT Act") of 2008, (P.L. 110-401, codified at 42 USC 17601, et seq.), authorized the ICAC program through FY 2013. On November 2, 2017, the Providing Resources, Officers, and Technology to Eradicate Cyber Threats to (PROTECT) Our Children Act of 2017 was signed into law, reauthorizing the ICAC Task Force Program through FY 2022.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and strengthen the criminal and juvenile justice systems. For more information regarding all OJP funding opportunities, visit https://www.ojp.gov/funding/explore/current-funding-opportunities.
Anyone with information regarding the exploitation of children is encouraged to contact local police, or the National Center for Missing and Exploited Children at 1-800-843-5678. Parents, educators and law enforcement officials can find more information and helpful resources at the ICAC website, TNICAC.org.
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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) Perry H. Piper will lead the efforts of the Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2022, general election. AUSA Piper 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.
“Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election,” said United States Attorney Francis M. Hamilton III. “Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence. The Department of Justice will always work tirelessly to protect the integrity of the election process.”
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).
“The franchise is the cornerstone of American democracy, said United States Attorney Hamilton. “We all must ensure that those who are entitled to the franchise can exercise it if they choose, and that those who seek to corrupt it are brought to justice.”
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 Piper 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) 385-1332 or (423) 504-7318.
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 Hamilton. “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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Justice Department Seeks Forfeiture of Property Used in Attacks on Planned Parenthood and Federal BuildingRead the Press Release
KNOXVILLE, Tenn. — On Sept. 26, 2022, the Justice Department filed a civil complaint seeking the forfeiture of a sedan, a pickup truck, and one firearm alleged to have been utilized in a series of attacks by Mark Thomas Reno, formerly of Jefferson City, Tennessee.
According to court documents, it is alleged that on Jan. 22, 2021, Reno utilized a sedan and a shotgun to fire an incendiary round into the entrance to the Planned Parenthood – Knoxville, Tennessee, Health Center (the Center); on Dec 31, 2021, Reno utilized a pickup truck to set fire to the Center, resulting in the Center burning down; on June 18, 2022, Reno utilized the same pickup truck and a .22 caliber rifle with an illegal suppressor to shoot the windows at the John J. Duncan Federal Office Building in downtown Knoxville; and again on July 3, 2022, Reno utilized the same sedan and the same .22 caliber rifle to shoot the windows at the John J. Duncan Federal Office Building in Knoxville. The complaint seeks the forfeiture of both vehicles and the firearm used during the shootings on June 18, 2022, and July 3, 2022.
The FBI arrested Reno on July 18, 2022. He was released from custody for health reasons on Aug. 14, 2022, and passed away on Aug. 15, 2022.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee announced the complaint.
The FBI, ATF and U.S. Marshals Service investigated the criminal case, with substantial assistance from the Knoxville Fire Department. Assistant U.S. Attorney Casey T. Arrowood for the Eastern District of Tennessee and Trial Attorney Kyle Boynton of the Criminal Section of the Justice Department’s Civil Rights Division prosecuted the criminal case.
Assistant U.S. Attorney Arrowood is representing the United States in the civil forfeiture action.
The claims made in the civil complaint 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 $166,027 in Justice Department Grants to Support Project Safe NeighborhoodsRead the Press Release
KNOXVILLE, Tenn. – The U.S. Attorney’s Office for the Eastern District of Tennessee announced today that the Department of Justice has awarded $166,027 to support the Project Safe Neighborhoods (PSN) Program in the Eastern District of Tennessee. Funding will support community efforts to address the epidemic of gun crime and serious violence in the district. The PSN grant was to the Tennessee Department of Finance and Administration and is one of a number of awards being made to state and local agencies across the country. Funds are administered by the Bureau of Justice Assistance, part of the Department’s Office of Justice Programs.
Launched two decades ago as an evidence-based and community-oriented response to serious gun crime, Project Safe Neighborhoods, known as PSN, is a key component of the Department’s Comprehensive Strategy for Reducing Violent Crime, outlined by Deputy Attorney General Monaco in May 2021. The PSN approach is guided by four key 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 of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
“The U.S. Attorney’s Office is pleased to be able to make this announcement today,” said U.S. Attorney Francis M. Hamilton III. “The PSN program and continued collaboration with all of our law enforcement partners is key to the ongoing efforts to address the violent crime issues in our communities.”
“Reducing violence and sustaining those reductions will require strong partnerships between criminal justice agencies and community stakeholders and a shared commitment to the safety and well-being of every community member,” said OJP Deputy Assistant Attorney General Maureen Henneberg. “The investments we are making through Project Safe Neighborhoods will enable every stakeholder to play a part in building safer and healthier communities.”
PSN programs are led by U.S. Attorneys’ Offices in collaboration with local public safety agencies and community organizations. The programs’ emphasis on community engagement, prevention, and intervention measures, focused and strategic enforcement, and measurement and accountability has helped achieve overall reductions in violent crime, including gun homicides, in neighborhoods where PSN strategies have been implemented.
“Over its two-decade history, Project Safe Neighborhoods has evolved to meet the complex challenges of community violence by enlisting the insights and expertise of local partners and by relying on the latest evidence,” said BJA Director Karhlton F. Moore. “We are proud to support our U.S. Attorneys and their allies in their critical work to curb violent crime and build the mutual trust necessary to ensure lasting success.”
The awards announced above are being made as part of the regular end-of-fiscal year cycle. More information about awards under PSN and other OJP grants can be found on the OJP Grant Awards Page.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
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Former Rhea County Executive Sentenced to 33 Months' Imprisonment for COVID-19 Related FraudRead the Press Release
CHATTANOOGA, Tenn. – On October 6, 2022, George Thacker, 59, of Spring City, Tennessee, was sentenced to 33 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 a plea agreement filed with the court, Thacker agreed to plead guilty to a one-count Bill of Information charging him with wire fraud in relation to COVID-19 relief funds, in violation of 18 U.S.C. § 1343. Thacker was ordered to pay $665,600.00 in restitution and a $15,000.00 fine, and he will be on supervised release for 3 years following his release from prison.
In 2020, the United States Government enacted The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) in an effort to stave off negative economic effects of the COVID-19 pandemic. Two related programs – the Paycheck Protection Program (“PPP”) and the Economic Injury Disaster Loan (“EIDL”) program – provided forgivable or low-interest loans to businesses affected by the pandemic.
According to court documents, between May 2020 and February 2021, Thacker submitted three separate fraudulent applications for a total of over $650,000 in PPP and EIDL relief funds. At the time, he served as the elected County Executive for Rhea County, Tennessee, and the owner of Thacker Corporation, a business headquartered in the Eastern District of Tennessee. As part of the loan application process, he certified that he would use the money for specific business-related purposes such as paying Thacker Corporation’s rent and continuing to pay his employees’ salaries. But instead of putting the relief funds to their intended purposes, Thacker used them to enrich himself. Among other things, he used the money to buy Bitcoin, Ether, and other cryptocurrencies and to fund his personal investment accounts.
“COVID-19 relief fraud is a serious crime,” said United States Attorney Francis M. Hamilton III. “Mr. Thacker’s scheme to defraud exploited a relief program designed to ease the economic suffering of all American workers and businesses. Today, he is being held accountable for his actions, and the Court’s sentence should demonstrate to any who are tempted to follow in his footsteps that this crime carries with it serious consequences. I commend the hard work of the United States Secret Service and all involved with this prosecution. The U.S. Attorney’s Office is committed to uncovering and prosecuting those who unlawfully exploited the COVID-19 pandemic for personal gain, and we will continue to work together with our federal law enforcement partners to ensure that any who abuse federal relief programs are brought to justice.”
"One of the Secret Service's primary roles is to protect the U.S. financial infrastructure, including pandemic related fraud. At the onset of the pandemic, fraud related to personal protective equipment was of primary concern to all law enforcement. Additionally, the release of Federal funding through the CARES Act and subsequent funding heightened this priority. The Secret Service is committed to combatting financial crime, especially in cases where fraudsters take advantage of American citizens during these trying times. The Secret Service, through its partnership with Federal and State, local law enforcement, and the private sector financial institutions, will continue to make this a primary concern for the Department," said Resident Agent in Charge Juan Alicea of the United States Secret Service (“USSS”) Chattanooga Resident Office.
The prosecution resulted from an investigation by the USSS.
Assistant United States Attorney Kyle Wilson prosecuted this case on behalf of the United States.
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Bristol Man Found to Be A Career Offender and Sentenced to 264 Months Imprisonment for Possession with Intent to Distribute MethamphetamineRead the Press Release
GREENEVILLE, Tenn. – On October 5, 2022, Michael Shane Moore, 40, of Bristol, Tennessee, was sentenced to 264 months in prison 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 Moore to be a career offender based on his criminal history.
As part of the plea agreement filed with the court, Moore agreed to plead guilty to possession with the intent to distribute 50 grams or more of methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(A). After his incarceration, Moore will be on supervised release for a period of 5 years.
According to the plea agreement, officers with the Bristol Tennessee Police Department located a stolen vehicle at a motel. The officers saw Moore exit the motel and get into the stolen car. Officers detained Moore and, during the course of their investigation, learned that he was in possession of 95 grams of methamphetamine, $1,528 in U.S. currency, and a .45 caliber pistol.
“Our office is committed to addressing the violent crime and drug trafficking problem that impacts our communities,” said United States Attorney Francis M. Hamilton III. “We will continue to work with our law enforcement partners to protect the public from those who traffic in drugs while armed.”
“Today’s announcement is a perfect answer as to why we chose to protect and serve the public. There has been an increase of vehicles thefts, illegal firearms possession, and narcotics distribution in our communities. The outcome of this case is the result of extremely great work that was performed by the Bureau of Alcohol, Tobacco, and Firearms (“ATF”) and our law enforcement partners. We will continue to work tirelessly to keep our communities safe from the individuals that continue to endanger our neighborhoods,” said ATF Special Agent in Charge Mickey French.
“This is a great example of the teamwork and cooperation, throughout the entire system that allows us all to be successful in our mission to ensure a safe, healthy environment for our community to thrive,” said Police Chief Matt Austin, Bristol Tennessee Police Department.
This case was the result of an investigation by the Bristol Tennessee Police Department and the ATF.
Assistant U.S. Attorney B. Todd Martin 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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U.S. Attorney's Office for the Eastern District of Tennessee Takes Part in Department's Wide-Ranging Efforts to Protect Older AdultsRead the Press Release
KNOXVILLE, Tenn. - The Justice Department announced today the results of its efforts over the past year to protect older adults from fraud and exploitation. During the past year, the Department and its law enforcement partners tackled matters that ranged from mass-marketing scams that impacted thousands of victims to bad actors scamming their neighbors. Substantial efforts were also made over the last year to return money to fraud victims. Today, the Department also announced it is expanding its Transnational Elder Fraud Strike Force to amplify efforts to combat scams originating overseas.
“We are intensifying our efforts nationwide to protect older adults, including by more than tripling the number of U.S. Attorneys’ offices participating in our Transnational Elder Fraud Strike Force dedicated to disrupting, dismantling and prosecuting foreign-based fraud schemes that target American seniors,” said Attorney General Merrick B. Garland. “This expansion builds on the Justice Department’s existing work to hold accountable those who steal funds from older adults, including by returning those funds to the victims where possible.
“We are committed to holding individuals accountable for criminally targeting older adult victims through fraudulent schemes,” said United States Attorney Francis M. Hamilton III. “As with all successful law enforcement initiatives, our collaboration with our local, state, and federal partners is essential to protecting our community’s older adults against scams.”
During the period from September 2021 to September 2022, Department personnel and its law enforcement partners pursued approximately 260 cases involving more than 600 defendants, both bringing new cases and advancing those previously charged.
On April 6, 2022, in the Eastern District of Tennessee, a federal grand jury returned an indictment charging five Jamaican nationals with conspiracy to commit mail fraud, in violation of 18 U.S.C. § 1349, in case number 3:22-CR-33. According to the indictment, the scheme involved contacting an elderly individual by mail and informing her that she had won more than $3 million through the Golden Casket International Sweepstakes. In subsequent phone calls, the victim was directed to make a series of payments to cover purported taxes and fees associated with her winnings. Prior to the defendants’ apprehension, more than $600,000 had been taken from the victim.
The trial of the five defendants is scheduled to begin on January 10, 2023, before the Honorable Judge Thomas A. Varlan, in Knoxville, Tennessee. The lead investigating agencies are the U.S. Postal Inspection Service, the Department of Homeland Security, and the Lenoir City Police Department.
The Department also highlighted three other efforts: expansion of the Transnational Elder Fraud Task Force, success in returning money to victims, and efforts to combat grandparent scams.
The Department announced that as part of its continuing efforts to protect older adults and bring perpetrators of fraud schemes to justice, it is expanding the Transnational Elder Fraud Strike Force, adding 14 new U.S. Attorney’s Offices. Expansion of the Strike Force will help to coordinate the Department’s ongoing efforts to combat largest and most harmful fraud schemes that target or disproportionately impact older adults.
In the past year, the Department has notified over 550,000 people that they may be eligible for remission payments. Notifications were made to consumers whose information was sold by one of three data companies prosecuted by the Department and were later victims of “sweepstakes” or “astrology” solicitations that falsely promised prizes or individualized services in return for a fee. More than 150,000 of those victims cashed checks totaling $52 million, and thousands more are eligible to receive checks. Also notified were consumers who paid fraudsters perpetrating person-in-need scams and job scams via Western Union. In the past year, the Department has identified and contacted over 300,000 consumers who may be eligible for remission. Since March 2020 more than 148,000 victims have received more than $366 million as a result of a 2017 criminal resolution with Western Union for the company’s willful failure to maintain an effective anti-money laundering program and it’s aiding and abetting of wire fraud.
Over the past year, the Department pursued cases against the perpetrators of “grandparent scams,” otherwise known as “person-in-need scams.” These scams typically begin when a fraudster, often based overseas, contacts an older adult and poses as either a grandchild, other family member or someone calling on behalf of a family member. Call recipients are told that their family member is in jeopardy and is urgently in need of money. When recently sentencing one of eight perpetrators of a grandparent scam indicted under the Racketeer Influenced and Corrupt Organizations Act, a federal Judge described such scams "heartbreakingly evil." The Department is working with government partners and others to raise awareness about these schemes.
Reporting from consumers about fraud and fraud attempts is critical to law enforcements efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available the National Elder Fraud Hotline: 1-833-FRAUD-11 or (833) 372-8311. This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professional who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week, from 6:00 a.m. to 11:00 p.m. [ET]. English, Spanish and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov.
Some of the cases that comprise today’s announcement are charges, which are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Yanier Tellez Sentenced to 70 Months for Conspiracy, Bank Fraud, and Aggravated Identity TheftRead the Press Release
GREENEVILLE, Tenn. – On September 29, 2022, Yanier Tellez, 32, currently of Tampa, Florida, was sentenced to 70 months in federal prison by the Honorable Clifton L. Corker, in the United States District Court for the Eastern District of Tennessee at Greeneville.
Tellez, a citizen of Cuba, previously pleaded guilty to conspiracy to commit bank fraud and aggravated identity theft in violation of 18 U.S.C. § 371, bank fraud in violation of 18 U.S.C. § 1344, and aggravated identity theft in violation of 18 U.S.C. § 1028A. Tellez was ordered to pay $39,899.97 in restitution, and he will be on supervised release for three years following his release from prison.
According to court records, in November 2017, Tellez and a previously sentenced coconspirator, Lazaro Quintana Martinez, 26, of Tampa, Florida, travelled to East Tennessee from Tampa, Florida to commit identity theft. The two used one or more skimming devices to collect account numbers and personal identifying information from unsuspecting customers. A skimming device was installed at a local business and would collect the credit and debit card numbers and other personal identifying information from customers who used the machine when making purchases. Once Tellez and Martinez obtained the account numbers and other information from the skimming device, they would re-encode that information onto magnetic-stripe cards such as prepaid gift cards and use the fraudulent cards to obtain cash, purchase money orders, and purchase gift cards at local ATM machines and local point of sale terminals throughout East Tennessee. Local store surveillance footage captured them committing their crimes, including footage from local Walgreens, CVS, and Kroger stores.
Upon return to Florida, Tellez was stopped for a traffic violation in Lee County, and he had thumb drives containing over 300 account numbers and corresponding customer information. According to court records, the average yield for each compromised account number was over $1,400 in fraudulent transactions. When stopped, Tellez also had a counterfeit gift card in his wallet that contained the account information of a resident of Greeneville, Tennessee, who banked with Eastman Credit Union. That card had the handwritten zip code for Greeneville on the back of the card.
Martinez previously pled guilty to the conspiracy and aggravated identity theft and was sentenced to 24 months in prison in the Eastern District of Tennessee. He was also sentenced to 51 months in prison in the Middle District of Florida for additional identity theft offenses.
Eastman Credit Union, a local financial institution that discovered fraudulent transactions, suffered actual losses from the scheme of $39,899.97.
The criminal indictment was the result of an investigation by the United States Secret Service, the Johnson City Police Department, the Kingsport Police Department, and the Lee County, Florida Sheriff’s Office. The investigation was led by United States Secret Service Senior Special Agent Thomas R. Whitehead.
Assistant United States Attorney Mac D. Heavener, III represented the United States.
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Former Heritage High School Football Coach Sentenced to Fifteen Years for Attempted Production of Child PornographyRead the Press Release
KNOXVILLE, Tenn. – On September 12, 2022, the Honorable Thomas A. Varlan, United States District Judge for the Eastern District of Tennessee, sentenced John David Morrow, 51, of Maryville, Tennessee, to 15 years in prison.
Morrow, a former football coach at Heritage High School, pleaded guilty to one count of attempted production of child pornography, in violation of 18 U.S.C. § 2251(a) and (e). Following his incarceration, Morrow will be on supervised release for 12 years and will be required to comply with special sex offender conditions. In addition, Morrow will be required to register with the state sex offender registry in whatever state in which he resides.
As set forth in the plea agreement filed with the court, Morrow used a social media platform to engage in conversations with an individual he believed to be a 12-year-old girl but who was actually an undercover federal agent. Morrow, despite knowing the victim’s age, repeatedly asked her to take sexually explicit photographs of herself for him to view, and he sent her several photographs of himself, including one displaying his genitalia.
This prosecution was the result of an investigation by the Federal Bureau of Investigation.
Assistant U.S. Attorney Jennifer Kolman represented the United States.
Members of the public who have questions or concerns related to this case, or any information relating to the sexual exploitation of children, should call 1-800-Call-FBI.
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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