Eastern District of Tennessee
Press releases recorded for this federal judicial district.
Roane County Man Sentenced to Life Plus 120 Months for Child Exploitation CrimesRead the Press Release
KNOXVILLE, Tenn. – On August 24, 2022, the Honorable Thomas A. Varlan, United States District Judge for the Eastern District of Tennessee, sentenced Kent Lowery Booher, 67, of Harriman, Tennessee, to serve life plus 120 months in federal prison on child exploitation charges.
Booher, a disbarred criminal defense attorney and prior sex offender, was found guilty of child exploitation crimes by a federal jury in April 2021 in violation of 18 U.S.C. §§ 2422(b), 2260A, 1591(a)(1), (b)(2), and 2251. Booher will also be ordered to pay restitution in an amount to be determined by the court at a later date.
According to the evidence presented at trial, Booher used a telephone, as well as Facebook and other electronic messaging platforms to communicate with an undercover officer that he thought was a 14-year-old girl. Over a five-day period, Booher engaged in sexually explicit communications with an officer that he believed to be minor. Booher arranged to meet the minor in person, at which time Booher was arrested by agents of the 9th Judicial District Attorney’s Office and the Harriman Police Department. Additionally, at trial the jury convicted Booher of charges pertaining to the sexual exploitation of a 15-year-old girl from 2012 to 2013.
“The lengthy sentence given by the Judge displays the gravity of crimes committed against children and the punishments those who commit them will face,” said United States Attorney Francis M. Hamilton III. “It is our duty to protect the most vulnerable in our society.”
The lead agency in this investigation was the 9th Judicial District Attorney’s Office. The Knoxville Police Department, Internet Crimes Against Children Task Force, Homeland Security Investigations, Lenoir City Police Department, Loudon County Sheriff’s Office, Harriman Police Department, Blount County Sheriff’s Department, Tennessee Department of Corrections, and U.S. Secret Service, assisted with the investigation.
Assistant U.S. Attorneys Jennifer Kolman and Frank M. Dale, Jr. represented the United States at trial.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about PSC, please visit www.projectsafechildhood.gov.
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Former Tennessee Law Enforcement Officer Sentenced for Federal Civil Rights OffensesRead the Press Release
Chattanooga, Tennessee – On August 26, 2022, former law enforcement officer Anthony "Tony" Bean (61), currently of Altamont, Tennessee, was sentenced by the Honorable Travis R. McDonough, in the United States District Court for the Eastern District of Tennessee at Chattanooga to 72 months in prison.
Tony Bean was convicted of using excessive force against arrestee C.G. on two occasions during C.G.’s arrest in 2014, while Bean was the Chief of the Tracy City Police Department in Tracy City, Tennessee, and of using excessive force against arrestee F.M. during F.M.’s arrest in 2017, while Bean was the Chief Deputy of the Grundy County Sheriff’s Office in Grundy County, Tennessee, in violation of Title 18 U.S.C. § 242. Following his imprisonment, Bean will be on supervised release for 24 months.
In June of 2021, the court heard evidence over the course of three days that showed that, during C.G.’s arrest in the Tracy Lakes area of Grundy County in 2014, Bean repeatedly punched C.G. in the face while C.G. was handcuffed and compliant, causing C.G. pain and other injuries. The court also heard evidence that, during F.M.’s arrest Grundy County in 2017, Bean punched F.M. in the face while F.M. was compliant, causing pain and other injuries. The court also heard evidence that Bean bragged about using excessive force against victims and failed to report his uses of force.
Deputy Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney for the Eastern District of Tennessee Francis M. (Trey) Hamilton III, and FBI Knoxville Special Agent in Charge Joseph E. Carrico made the announcement.
"Law enforcement officers who violate victims’ rights also violate the trust of their communities," said Deputy Attorney General Kristen Clarke. "The Department of Justice will hold accountable those officers who abuse their authority, wherever they may be."
"Nobody is above the law," said U.S. Attorney Francis M. Hamilton. "The defendant, Anthony "Tony" Bean abused his authority and violated the civil rights of arrestees by physically assaulting them while they were restrained and not posing any threat. A sentence of 72 months sends a strong message to the community that the abuse of arrestees will not be tolerated, and law enforcement officers who break the law will be held accountable for their actions."
"When an officer betrays the oath to protect and serve, the public is put at risk and the law enforcement community is tarnished," said Special Agent in Charge Joseph E. Carrico. "The public has a right to trust that officers will do the right thing. When they don't, the FBI remains committed to investigate and bring them to justice."
This case was investigated by the Knoxville Division of the FBI and was prosecuted by Trial Attorneys Kathryn E. Gilbert and Andrew Manns of the Justice Department’s Civil Rights Division and Assistant United States Attorney James Brooks of the U.S. Attorney’s Office for the Eastern District of Tennessee.
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Covenant Health Settles Americans with Disability Act Claim with United StatesRead the Press Release
KNOXVILLE, Tenn. - The United States reached a settlement on August 19, 2022, with Covenant Health (Covenant). Covenant is a not-for-profit health care organization headquartered in Knoxville, Tennessee. Covenant operates nine hospitals in East Tennessee, including Parkwest Medical Center (PWMC). In a complaint filed in the U.S. District Court for the Eastern District of Tennessee, a complainant, who is deaf, alleged that he was denied effective communication under the Americans with Disabilities Act (ADA) during emergency department visits and an in-patient hospital admission at PWMC.
The complainant alleged he went to Covenant facilities, including PWMC, after experiencing numbness and pain in his leg. The complainant alleged that the virtual interpreter services offered were ineffective and that no live interpreter services were provided to him despite repeated requests. The complainant alleged that he did not understand the reasons for his admissions, the treatment plan, or his discharge instructions. The U.S. Attorney’s Office for the Eastern District of Tennessee opened a civil investigation into these allegations under the ADA. Covenant and the United States have reached a settlement to resolve this investigation.
In resolving the investigation, Covenant agrees to implement measures and/or ensure compliance with existing measures aimed at protecting the rights of patients and companions who are deaf or hard of hearing at its hospitals. Those measures include: (1) designating an ADA administrator at each facility to provide oversight and guidance; (2) identifying services that can provide interpreters to each facility in a timely manner; (3) providing notice to patients and their companions of their rights under the ADA; (4) developing an assessment plan to effectively determine the appropriate auxiliary aid for each situation; (5) providing ADA training; and (6) submitting compliance reports to the U.S. Attorney’s Office. The settlement agreement is effective for three years. In addition, Covenant will pay a statutory penalty to the United States in the amount of $50,000.
“The U.S. Attorney’s Office commends the complainant for sharing his experience to improve healthcare communication for other persons in the deaf community. Further, we commend Covenant Health and Parkwest Medical Center for cooperating in our investigation and working to promote effective communication with deaf individuals,” said U.S. Attorney Francis M. Hamilton III. “This agreement is a roadmap for success for public accommodations within East Tennessee that aim to improve the participation of deaf persons and other persons with hearing impairments in healthcare decisions.”
Assistant U.S. Attorney Leah W. McClanahan represented the United States in the investigation.
Members of the public should be reminded that the claims settled by this agreement are allegations only and that there has been no determination of liability.
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Delaware Man Pleads Guilty to Unlawfully Distributing Hydroxychloroquine and Other Prescription DrugsRead the Press Release
KNOXVILLE, Tenn. – On August 17, 2022, Jose Torres, 58, currently of Shelbyville, Delaware, appeared before the United States District Court for the Eastern District of Tennessee and entered a guilty plea to one count of conspiracy to engage in the unlicensed wholesale distribution of prescription drugs. Sentencing is set for March 29, 2023, at 3:00 pm, before the Honorable Thomas A. Varlan, United States District Judge.
Torres faces a term of up to five years in Federal prison, $250,000 in fines, and three years of supervised release.
As part of the written plea agreement, Torres waived indictment by a Federal Grand Jury and agreed to plead guilty to the aforementioned charge. Torres conspired and agreed with others to unlawfully purchase short-supply drugs and resell those drugs to wholesale distributors. Torres and another company entered business arrangements with retail pharmacies that were not licensed to engage in the wholesale distribution of prescription drugs. Torres used the business arrangements with retail pharmacies to purchase prescription drugs from authorized distributors. Torres then resold those drugs to wholesale distributors at a significant markup. Torres knowingly misled the authorized distributors by using the pharmacies’ accounts and credentials to purchase drugs from authorized distributors.
For example, on or about March 23, 2020, Torres purchased hydroxychloroquine sulfate tablets from a pharmacy located in the Eastern District of Tennessee, an unlicensed wholesale distributor, for $178 per unit, which was subsequently resold to a Veterans Affairs Medical Center in New York for $442 per unit by one of Torres’s wholesale distribution customers.
As part of the written plea agreement, Torres agreed to a personal money judgment in favor of the United States in the amount of $119,350, which represents the amount of proceeds Torres personally obtained from the offense described in the plea agreement.
“This plea agreement represents the commitment of the U.S. Attorney’s Office to prosecuting those who exploited the fears of others to unlawfully profit during the COVID-19 pandemic,” said U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee.
“We continue to actively monitor the marketplace for criminal activity involving products related to COVID-19 and take action against those who put profits above public health,” said Special Agent in Charge Justin C. Fielder, FDA Office of Criminal Investigations Miami Field Office.
“Today’s guilty plea sends a clear message that criminal conspiracies aimed at enriching individuals at the expense of VA programs and services will not be tolerated,” 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 its law enforcement partners for their commitment in helping hold this defendant accountable.”
Assistant United States Attorney William A. Roach, Jr., who serves as the Office’s Coronavirus Fraud Coordinator, prosecuted the case.
This prosecution is the result of an investigation by the United States Food and Drug Administration, Office of Criminal Investigations, and the United States Department of Veterans Affairs, Office of Inspector General.
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 Grand Jury Indicts Multiple Defendants for Marijuana, Money Laundering, and Firearms OffensesRead the Press Release
KNOXVILLE, Tenn. - A federal grand jury in Knoxville returned a four-count indictment on July 20, 2022, against Jordon Albert White, 31, Jack Jamarcus Bolden, 32, Anasia Annette Cherry, 21, Tatyana Davenport, 25, Anthony Dewayne Davis, 28, James Anthony Johnson, Jr., 31, Adarius Damonde McLeroy, 31, Rebecca Hope Richey, 24, Isaac Scott White, 26, David Whitehead, Jr., 49, and Kiersten Jennifer Whitehead, 50, all of Knoxville, Tennessee, Jacob Scott Clabough, 24, of Luttrell, Tennessee, Shawn Edward Fuller, 27, of Maryville, Tennessee, and Yazan Arafat Abdul-Latif, a/k/a Ryan Rodgers, 28, of Weaverville, California, for conspiracy to distribute 1000 kilograms or more of marijuana and conspiracy to commit money laundering. Jordan White and Abdul-Latif were also charged with possession of a firearm in furtherance of their drug trafficking crime.
Jordon White, Cherry, Clabough, Davenport, Davis, Fuller, Johnson, McLeroy, Richey, Isaac White, David Whitehead, Jr., and Kiersten Whitehead all appeared in federal court on August 10, 2022, before U.S. Magistrate Judge Jill McCook and entered pleas of not guilty to the charges in the indictment. Jordan White, Davis, Fuller, Johnson, McLeroy, and Isaac White were detained pending trial, while Cherry, Clabough, Davenport, Richey, David Whitehead, Jr., and Kiersten Whitehead were released pending trial. Bolden and Abdul-Latif have not yet appeared in federal court on these charges. Trial has been set for October 18, 2022, in United States District Court, in Knoxville, Tennessee, before the Honorable Thomas A. Varlan, United States District Judge.
If convicted, each defendant faces a minimum mandatory term of imprisonment of at least 10 years up to life, up to a $10,000,000 fine, five (5) years of supervised release, and forfeiture.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee made the announcement.
This indictment is the result of an investigation by Federal Bureau of Investigation Appalachian High Intensity Drug Trafficking Area Task Force (“FBI AHIDTA”), the Internal Revenue Service (“IRS”), and the United States Postal Inspection Service (“USPIS”). The FBI AHIDTA Task Force includes the Roane County Sheriff’s Office, Knoxville Police Department, Knox County Sheriff’s Office, Blount County Sheriff’s Office, and Sevier County Sheriff’s Office.
Assistant U.S. Attorney Cynthia Davidson will represent the United States.
This case was part of the Justice Department's Organized Crime Drug Enforcement Task Force (OCDETF) and HIDTA programs. OCDETF is the primary weapon of the United States against the highest-level drug trafficking organizations operating within the United States, importing drugs into the United States, or laundering the proceeds of drug trafficking. The HIDTA program enhances and coordinates drug control efforts among local, State, and Federal law enforcement agencies. The program provides agencies with coordination, equipment, technology, and additional resources to combat drug trafficking and its harmful consequences in critical regions of the United States.
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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William Roger Woodie Sentenced to 25 Years for Conspiracy to Distribute MethamphetamineRead the Press Release
GREENEVILLE, Tenn. – On August 8, 2022, William Roger Woodie, 33, of Calhoun, Georgia, was sentenced to 300 months in prison by the Honorable J. Ronnie Greer, in the United States District Court for the Eastern District of Tennessee at Greeneville.
As part of the plea agreement filed with the court, Woodie agreed to plead guilty to conspiracy to distribute 4.5 kilograms or more of methamphetamine in violation of 21 U.S.C. §§ 846, 841(a)(1), and 841(b)(1)(A). After his term of incarceration, Woodie will be on supervised release for five years.
According to the plea agreement and other documents filed with the court, agents with the Drug Enforcement Administration (“DEA”) and the Johnson City Police Department (“JCPD”) began an investigation into the trafficking of methamphetamine into the Eastern District of Tennessee in 2018. The investigation revealed that Woodie, who was incarcerated within the Georgia Department of Corrections, was responsible for arranging the trafficking of hundreds of pounds of methamphetamine into the region. In text messages recovered during the investigation, Woodie described himself as a “full time drug dealer.” During the investigation, 52 kilograms of methamphetamine and over 20 firearms were seized by law enforcement. Additionally, over 30 individuals from Woodie’s network have been convicted as a result of the investigation. This organization obtained methamphetamine primarily from the Atlanta, Georgia area and distributed it within eastern Tennessee and southwest Virginia.
This case was the result of an investigation by DEA, JCPD, the Tennessee Highway Patrol, the Sullivan County Sheriff’s Department, the Bristol, Tennessee Police Department, the Department of Homeland Security, and the Bureau of Alcohol, Tobacco, and Firearms.
Assistant U.S. Attorneys Thomas McCauley and Emily Swecker represented the United States.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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 Jefferson County Men Sentenced to at Least 15 Years in Prison for Production of Child PornographyRead the Press Release
KNOXVILLE, Tenn. – On August 4, 2022, the Honorable Katherine A. Crytzer, United States District Judge for the Eastern District of Tennessee, sentenced Alan Malott, age 27, of Dandridge, Tennessee, to serve 195 months in federal prison, and on August 5, 2022, the Honorable Katherine A. Crytzer sentenced Christopher Thurman, age 25, also of Dandridge, Tennessee, to serve 180 months in federal prison. Malott and Thurman were co-defendants who were both charged with the production of child pornography.
As part of plea agreements filed with the court, Malott and Thurman both agreed to plead guilty to an indictment charging them with producing child pornography in violation of 18 U.S.C. § 2251(a) and (e). Following their term of imprisonment, Malott and Thurman will be on supervised release for life. Both Malott and Thurman will be required to register with state sex offender registries and comply with special sex offender conditions during their supervised release.
According to documents filed in the case, Malott and Thurman admitted in 2019 they filmed themselves raping a minor family member of Malott’s. Malott then sent the video of the rape to his prior boyfriend in Louisiana and to Thurman. The defendants also admitted they sexually abused a horse and dog.
This prosecution was the result of an investigation by the Federal Bureau of Investigation.
Assistant U.S. Attorney Jennifer Kolman represented the United States in court.
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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Charles Elsea, Jr., Leader of A Prison Gang, Sentenced to Life in Prison for Drug and Money Laundering OffensesRead the Press Release
GREENEVILLE, Tenn. – On August 8, 2022, Charles Elsea, Jr., 44, a longtime inmate of the Tennessee Department of Corrections, was sentenced to life in prison by the Honorable J. Ronnie Greer, in the United States District Court for the Eastern District of Tennessee at Greeneville.
Following a six-day jury trial in March 2022, Elsea was convicted by a jury of Conspiracy to Distribute 50 Grams or More of Actual Methamphetamine, 21 U.S.C. §§ 846, 841(a)(1), and (b)(1)(A); Conspiracy to Distribute Marijuana, 21 U.S.C. §§ 846, 841(a)(1), and (b)(1)(C); Conspiracy to Commit Money Laundering 18 U.S.C. § 1956(a)(1)(A)(i).
During sentencing, Judge Greer found that Elsea was responsible for distributing over 56.8 kilograms of methamphetamine. Elsea was ordered to forfeit $1,263,490.00, which represented the illegal proceeds from distributing methamphetamine and money laundering.
According to court documents and evidence presented at trial, Elsea was serving a prison sentence for First Degree Murder for a 1996 homicide in Hamilton County, Tennessee when he rose through the ranks to become the State President of the Brotherhood Forever, a Tennessee based prison gang. Elsea led the drug trafficking organization from behind prison walls using smuggled cellphones to conduct his business on the outside. Elsea orchestrated multi-kilo methamphetamine deals that involved methamphetamine being transported from California and Arizona to Tennessee. Elsea and his coconspirators used the drug proceeds from the methamphetamine sales to create marijuana grow houses in and out of Tennessee. Elsea was also involved in starting two marijuana grow operations during the pendency of this case, utilizing the jail’s video system to speak to coconspirators about the cultivation of marijuana.
The case was the result of a five-year investigation that began in the spring of 2017 by the Department of Homeland Security – Homeland Security Investigations (“DHS-HSI”), the Drug Enforcement Administration (“DEA”), and the United States Postal Inspection Service (“USPIS”). Other agencies involved with the investigation included the Tennessee Department of Correction Office of Investigations and Conduct; the Elizabethton and Carter County Joint Drug Task Force; the Huron Undercover Narcotic Team with the Michigan State Police; the Arkansas Highway Patrol; the Missouri Western Interdiction Task Force with the Kansas City, Missouri Police Department; and the California Visalia Police Department. This investigation was led by HSI Special Agent John Bulla.
Assistant U.S. Attorneys Meghan L. Gomez and J. Christian Lampe represented the United States at sentencing.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Knoxville Man Sentenced to 10 Months for Federal Firearms ViolationRead the Press Release
KNOXVILLE, Tenn. – On August 4, 2022, United States District Judge Katherine A. Crytzer sentenced Kelvon Foster, 21, of Knoxville, TN, to 10 months’ imprisonment followed by two years of supervised release for making false or fictitious statements in connection with the purchase of a firearm in violation of Title 18, United States Code, Section 922(a)(6). Violations of that statutory provision are sometimes referred to informally as “straw purchasing.”
As part of the plea agreement filed with the court, Foster admitted to purchasing firearms from a Federal Firearm’s Licensee in Knoxville, TN, on behalf of people prohibited by federal law from purchasing firearms. Foster further admitted that he purchased at least one of the firearms, a Glock pistol, on behalf of a juvenile, Anthony Thompson. The Glock pistol was later recovered by law enforcement in connection with an officer-involved shooting of Thompson at Austin-East Magnet High School on April 12, 2021.
“In most straw purchasing cases, the harm is understood but often theoretical,” said United States Attorney Francis M. Hamilton III. “In this case, the harm was real and tragic. The laws prohibiting certain persons from purchasing firearms are there for a reason, and my office, and our law enforcement partners, will continue pursuing these cases to the fullest extent of the law.”
“A person violates federal law the moment they purchase and transfer a firearm to an individual who cannot legally possess them,” said ATF Special Agent in Charge Mickey French. “The ATF is committed to working with our local, state, and federal partners to investigate and prosecute the ‘straw purchasers’ in conjunction with the individuals who receive these firearms and use them to commit violent criminal acts.”
This prosecution is the result of an investigation by the ATF and the TBI. The United States Attorney’s Office wishes to thank the Knox County Attorney General’s Office for its support of this federal investigation. This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community face.
Assistant U.S. Attorney Tracy L. Stone represented the United States.
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Dental Provider Agrees to Settle Allegations of Improper Billing of TennCareRead the Press Release
KNOXVILLE, Tenn. – The United States Attorney’s Office announced today that Dr. Don Flanagan, D.D.S., and his affiliated companies, Dental Center, Inc. and Dental Center, P.C. d/b/a Cloudland Dental (“Cloudland Dental”), have agreed to pay $1,500,000 to resolve allegations that they knowingly and improperly submitted false claims for dental services to TennCare in violation of the False Claims Act (“FCA”) and the Tennessee Medicaid False Claims Act (“TMFCA”). Franci Raines, who was formerly employed as Cloudland Dental’s Business Manager, also agreed to resolve similar allegations against her.
TennCare requires that dentists apply for and receive approval before billing for services rendered to beneficiaries. This approval process, which is known as credentialing, requires, among other things, that applicants submit relevant information about their educational background, licensure status, insurance coverage, as well as information about any criminal history, malpractice claims, and state board disciplinary history. The credentialing process is intended to ensure that beneficiaries receive the highest quality of care from competent providers who have been vetted prior to rendering services.
Dr. Flanagan formerly owned Cloudland Dental, which operated dental clinics located in Chattanooga, Cleveland, Crossville, and Sweetwater. The settlement resolves allegations that, from January 2015 through February 2019, Cloudland Dental knowingly submitted, or caused to be submitted, to TennCare claims for payment that falsely identified Dr. Flanagan as the rendering provider for services that were actually rendered by uncredentialed dentists who were ineligible to bill TennCare, at Cloudland Dental’s offices located in Cleveland, Crossville, and Sweetwater.
“When healthcare providers agree to participate in federal healthcare programs such as TennCare, they must adhere to the requirements of the program just like everyone else. The credentialing requirement for participating providers is not a mere formality; rather, it is an important requirement that is intended to ensure that services are rendered by qualified providers. Today’s settlement should send a message to all providers who participate in government sponsored healthcare programs that they must follow the rules when they elect to participate in publicly funded programs,” said United States Attorney Francis M. Hamilton III.
This settlement is the result of a collaborative effort between the U.S. Attorney’s Office for the Eastern District of Tennessee, the U.S. Department of Health and Human Services, Office of Inspector General, the Tennessee Attorney General’s Office, and the Tennessee Bureau of Investigation. The investigation that preceded the settlement was prompted by a lawsuit filed in 2019 under the qui tam or “whistleblower” provisions of the FCA and TMFCA, which permit a private individual (known as a “relator”) to sue on behalf of the government for false claims and to share in any recovery. The relator’s share of the recovery in this case will be $255,850.
Assistant U.S. Attorney Joseph C. Rodriguez represented the United States.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
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Stacey Edward Williams, Jr. Sentenced to Life in Prison for the Distribution of Drugs Resulting in an Overdose DeathRead the Press Release
KNOXVILLE, Tenn. – On June 22, 2022, Stacey Edward Williams, Jr., 42, currently of Sevierville, Tennessee and formerly of Detroit, Michigan, was sentenced to life in prison by the Honorable Katherine A. Crytzer, in the United States District Court for the Eastern District of Tennessee.
In November 2021, following a four-day trial, a federal jury convicted Williams of eight separate counts, including a conspiracy to distribute heroin, fentanyl, and acetyl fentanyl, multiple counts of possession and distribution of heroin, fentanyl, and acetyl fentanyl, in violation of Title 21, United States Code, Sections 846, 841(a)(1) and (b)(1)(C), the distribution of fentanyl and acetyl fentanyl resulting in death, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), and the possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g). Williams was also ordered to serve six years on supervised release, in the event he is released from prison notwithstanding his life sentence. Additionally, he was ordered to pay restitution in the amount of $5,890.10 to the family of the victim for funeral and related expenses.
According to court documents and evidence presented at trial, Williams sold heroin, fentanyl, and acetyl fentanyl to confidential informants on several occasions in 2018. The evidence further showed that Williams distributed drugs to a Kodak, Tennessee resident, which resulted in his death on Thanksgiving morning, November 22, 2018. Finally, the evidence showed that on March 27, 2019, agents seized quantities of heroin, fentanyl, and acetyl fentanyl, a firearm and ammunition, and over $10,000 in cash from Williams.
United States Attorney Francis M. Hamilton III and Homeland Security Investigations Special Agent in Charge Jerry C. Templet Jr. made the announcement.
Law enforcement agencies participating in the joint investigation which led to the indictment and subsequent conviction of Williams include the Sevier County Sheriff’s Office (“SCSO”) and Homeland Security Investigations (“HSI”) with the participation and assistance of the Sevier County Street Crimes Unit, the Tennessee Bureau of Investigation, and the U.S. Marshal’s Service.
Assistant United States Attorneys Brent N. Jones and Anne-Marie Svolto represented the United States at trial.
This case was prosecuted as part of Operation Synthetic Opioid Surge (SOS), a Department of Justice program that seeks to reduce the supply of deadly synthetic opioids in high impact areas and to identify wholesale distribution networks and international and domestic suppliers.
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Zachary Hood Sentenced to 18 Months' Imprisonment for CyberstalkingRead the Press Release
CHATTANOOGA, Tenn. – On June 16, 2022, the Honorable Charles E. Atchley, Jr., United States District Judge for the Eastern District of Tennessee, sentenced Zachary Hood, 36, currently of Alpharetta, Georgia, to 18 months’ imprisonment for cyberstalking, and Hood was ordered to pay a $7,500 fine.
As part of a plea agreement filed with the court, Hood waived indictment by a Federal Grand Jury and pleaded guilty to a bill of information charging him with one count of cyberstalking, in violation of 18 U.S.C. § 2261A. Following his imprisonment, Hood will be on supervised release for three years.
According to the filed plea agreement, in October 2017, Hood created a Facebook account using the name and likeness of a female victim whose identity is being withheld for privacy reasons. Hood then distributed intimate photographs of the victim to the victim’s friends and family. For example, while claiming to be the victim, Hood sent photos featuring the victim’s breasts and buttocks to a friend of the victim’s husband, asking if the friend liked those photos. Hood also contacted the victim’s husband directly, sending the husband nude photographs of the victim and making lewd and sexually suggestive comments about the victim’s appearance. Hood also contacted eight other women, sending each woman intimate photographs of herself, sometimes accompanied by Hood’s own commentary.
This prosecution is the result of a joint effort between the United States Attorney’s Office and Federal Bureau of Investigation offices in the Southern District of New York and the Eastern District of Tennessee.
“Cyberstalking is a serious crime that can inflict lasting harm on its victims,” said United States Attorney Francis M. Hamilton III. “The United States Attorney’s Office is committed to working with its law enforcement partners to combat the growing trend of digital harassment. As this sentence demonstrates, those who go online to threaten, intimidate, or harass others face real-world consequences, including federal prison time. Cyberstalking simply has no place in today’s society.”
“This kind of behavior is not a prank, it's disruptive to the victims and their families, and those who think they can hide behind the anonymity of the Internet should think again,” said Joseph E. Carrico, Special Agent in Charge for the FBI Knoxville Office. “The FBI along with our local, state, and federal partners stand steadfast in our resolve to investigate, arrest, and prosecute those who commit these horrendous personal acts.”
“The internet can seem like a modern day Wild West, where criminals roam free and are not held accountable for committing crimes,” said Assistant Director in Charge Michael J. Driscoll for the FBI New York Office. “Setting up a fake Facebook account and sending intimate photos of someone to their friends without their consent is illegal, and now Mr. Hood has to answer for his actions. Many people don’t report these types of crimes because they don’t think anything will be done to the perpetrator. We hope this case proves when people break federal laws they will face federal justice.”
Assistant United States Attorney Kyle J. Wilson, the District’s Computer Hacking and Intellectual Property Crimes Coordinator, represented the United States in court.
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Jefferson County Woman Sentenced to 262 Months in Prison for Production and Attempted Distribution of Child PornographyRead the Press Release
KNOXVILLE, Tenn. – On June 16, 2022, the Honorable Katherine A. Crytzer, United States District Judge for the Eastern District of Tennessee, sentenced Shana Coffey, age 42, of Jefferson City, Tennessee, to serve 262 months in federal prison for producing and attempting to distribute child pornography, followed by lifetime on supervised release.
As part of the plea agreement filed with the court, Coffey agreed to plead guilty to a superseding indictment charging her with producing child pornography in violation of 18 U.S.C. § 2251(a) and (e) and attempting to distribute child pornography in violation of 18 U.S.C. § 2522A(a)(2)(B). Coffey will be required to register with the state sex offender registry in any state in which she lives, works, or attends school.
Coffey admitted that in April 2020 she used a minor to engage in sexually explicit conduct for the purposes of producing visual depictions of such conduct and, in June 2020, she attempted to distribute child pornography to others.
This prosecution was the result of an investigation by the Federal Bureau of Investigation.
Assistant U.S. Attorney Jennifer Kolman represented the United States in court.
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.justice.gov/psc.
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Federal Jury Convicts Gary Hammonds on Three Counts of Child Pornography OffensesRead the Press Release
GREENEVILLE, Tenn. - Following a three-day trial in United States District Court, Greeneville, Tenn., a jury convicted Gary Lynn Hammonds, 53, of Kingsport, Tenn., of knowingly distributing child pornography, knowingly receiving child pornography and knowingly possessing child pornography involving a child less than 12 years of age.
Sentencing is set for October 20, 2022, at 10:00 a.m., before the Honorable Clifton L. Corker, in United States District Court for the Eastern District of Tennessee at Greeneville. Hammonds faces a maximum sentence of twenty years in prison as to each offense and a five-year minimum mandatory sentence for counts one and two.
The evidence presented at trial demonstrated that Hammonds possessed over 1,000 videos and images containing child pornography on a laptop computer and external hard drives that were found in his home. Hammonds distributed child pornography online using peer-to-peer file sharing software. The investigation was initiated by a Hawkins County Sheriff’s Office Internet Crime Against Children (ICAC) investigator who identified an internet user on a peer-to-peer file sharing network who was actively sharing child pornography online. The Kingsport Police Department used the information to obtain a search warrant for the defendant’s residence. Officers executed the search warrant on July 20, 2018, and seized a number of devices.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee made the announcement.
The Kingsport Police Department, Hawkins County Sheriff’s Office and the Department of Homeland Security Investigations participated in the investigation that resulted in the indictment and subsequent conviction of Hammonds.
Assistant U.S. Attorney Emily M. Swecker and Meghan L. Gomez represented the United States at trial.
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 click on the link for “Publications & Resources.”
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Two Federally Indicted for Unlawful Possession of Firearms in Connection with June 5, 2022 McCallie Avenue ShootingsRead the Press Release
On June 14, 2022, a federal grand jury in Greeneville, Tennessee returned a two-count indictment against Garrian King, also known as “Big G,” and Rodney Harris, also known as “3rd,” both of Chattanooga.
The indictment alleges that on or about June 5, 2022, in the Eastern District of Tennessee, the defendants each possessed a firearm after being convicted of a felony, in violation of Title 18, United States Code, Section 922(g)(1). Both defendants were previously charged by complaint. The details of these charges are outlined in the affidavits in support of those complaints, which are filed as public records in the United States District Court for the Eastern District of Tennessee at Chattanooga.
If convicted, each defendant faces a sentence of up to ten years in prison, a fine of up to $250,000, and a period of supervised release of up to three years.
The indictment is the result of an investigation by the Chattanooga Police Department, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Federal Bureau of Investigation (FBI). Several other federal, state, and local law enforcement agencies assisted in the investigation, including the United States Marshals Service, United States Secret Service, and the Tennessee Bureau of Investigation.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community face.
Assistant United States Attorney Christopher D. Poole 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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Garrian King Charged with Being A Felon in Possession of A FirearmRead the Press Release
CHATTANOOGA, Tenn. – Garrian King was arrested yesterday in Chattanooga by agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Federal Bureau of Investigation (FBI), and officers with the Chattanooga Police Department for being a felon in possession of a firearm in violation of Title 18, United States Code, Section 922(g)(1). This arrest is in connection with the shootings that occurred on June 5, 2022, in Chattanooga.
An initial appearance was held yesterday, in the United States District Court in Chattanooga, before the Honorable Christopher H. Steger, United States Magistrate Judge. Mr. King was detained without bond.
The details of the charge of possession of a firearm by a convicted felon by King on June 6, 2022, are outlined in the arrest warrant and supporting affidavit, which are filed as public records in the United States District Court for the Eastern District of Tennessee at Chattanooga.
“The U.S. Attorney’s Office is committed to working with all of its law enforcement partners to protect our community through the vigorous enforcement of federal criminal gun laws,” said U.S. Attorney Francis M. Hamilton III. “Yesterday’s charge is the result of the tireless, around-the-clock work by, and collaboration among, the Chattanooga Police Department, the ATF, and the FBI, which continues unabated.”
“Immediate deployment of all resources typically yields the best results. We will continue to collaborate with our law enforcement partners in order to bring those responsible to justice and secure the safety and freedom of all Chattanoogans,” said Chattanooga Police Department Chief Celeste Murphy.
“The ATF takes pride in working with our local, state, and federal partners to bring justice to individuals who illegally possess firearms and willingly cause harm in the communities that we live in. These individuals put the lives of everyday citizens at risk, and we will work diligently to mitigate these senseless acts of terror,” said ATF Special Agent in Charge Mickey French.
“The FBI values the partnership we have with the Chattanooga Police Department, ATF, and the United States Attorney's Office to target offenders who illegally possess firearms in Chattanooga. Through this ongoing collaboration with local, state and federal law enforcement, we will continue to focus our resources on the most violent and egregious offenders endangering our communities, “said FBI Special Agent in Charge Joe Carrico.
This prosecution is the result of an ongoing investigation by the Chattanooga Police Department, the ATF, and the FBI. The U.S. Attorney’s Office extends its appreciation to the Chattanooga Mayor’s Office for its support of collaboration among local and federal law enforcement to achieve the mutual goal of addressing violent crime in the City of Chattanooga.
Assistant United States Attorney Christopher D. Poole will represent the United States.
Members of the public are reminded that King has only been charged and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
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Federal Jury Convicts Jamaal Parker on Drug Trafficking and Firearm ChargesRead the Press Release
CHATTANOOGA, Tenn. - Following a two-day trial in United States District Court, a jury convicted Jamaal Parker, also known as “MoneyMaal,” 37 of Chattanooga, 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.
Sentencing is set for October 14, 2022, at 9:00 a.m. in United States District Court before United States District Judge Travis R. McDonough, in Chattanooga, Tennessee. Parker faces a mandatory minimum sentence of 15 years in prison and up to a maximum of life in prison.
The evidence presented at trial showed that 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 was found in possession of 4 kilograms of cocaine and a loaded firearm.
U.S. Attorney Francis M. Hamilton of the Eastern District of Tennessee; and J. Todd Scott, Special Agent in Charge of Drug Enforcement Administration (“DEA”) Louisville Field Division made the announcement.
Law enforcement agencies participating in the joint investigation which led to 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.
The investigation was conducted as part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Special Assistant U.S. Attorney Kevin T. Brown and Assistant U.S. Attorney Scott Winne represented the United States at trial.
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Defendants Sentenced in Tennessee for Multimillion-Dollar Nationwide Telemedicine Pharmacy Fraud SchemeRead the Press Release
This week, a federal judge in Greeneville, Tennessee, sentenced seven individuals and seven related corporate entities for their roles in a multimillion-dollar health care fraud scheme.
According to court documents and evidence presented at trial, Peter Bolos and his co-conspirators, Michael Palso, Andrew Assad, Scott Roix, Larry Smith, Mihir Taneja, Arun Kapoor and Maikel Bolos, as well as various companies owned or controlled by some of these individuals, deceived pharmacy benefit managers (PBMs), such as Express Scripts and CVS Caremark, regarding tens of thousands of prescriptions. The PBMs processed and approved claims for prescription drugs on behalf of insurance companies. Bolos and his co-conspirators defrauded the PBMs into authorizing millions of dollars’ worth of claims that private insurers such as Blue Cross Blue Shield of Tennessee, and public insurers such as Medicaid and TRICARE, paid to pharmacies controlled by the co-conspirators.
Peter Bolos was convicted by a federal jury in December 2021. Roix, Assad, Palso, Smith, Maikel Bolos, and various associated business entities pleaded guilty to their roles in the conspiracy. Taneja, Kapoor, and Sterling Knight pleaded guilty to felony misbranding in a conspiracy with Bolos. U.S. District Judge J. Ronnie Greer imposed sentences this week for all of the defendants except Roix, whose sentencing hearing was rescheduled for June 15, 2022.
On May 16, the court sentenced Bolos to 14 years in prison and $2.5 million in forfeiture. On the same date, the court also sentenced Palso, 48, of Lutz, Florida, to 33 months in prison. Bolos and Palso also were each ordered to pay nearly $25 million in restitution.
On May 17, the court sentenced Smith, 52, of Tampa, to 42 months of imprisonment. The now-defunct corporate entities that Smith created, Alpha Omega Pharmacy, Germaine Pharmacy, Zoetic Pharmacy, ULD Wholesale LLC, and Tanith Enterprises, all were sentenced to pay nearly $25 million in restitution. The court also sentenced Taneja, 47, of Tampa, to 10 months of imprisonment and a $10,000 fine.
On May 18, the court sentenced Kapoor, 48, of Temple Terrace, Florida, to three years’ probation and a $10,000 fine. Sterling Knight, a now-defunct corporate entity that Kapoor and Taneja created, was sentenced to pay $21 million in restitution. The court also sentenced Maikel Bolos, 36, of Tampa, to 15 months of imprisonment and a $25,000 fine.
On May 19, the court sentenced Assad, 37, of Tampa, to 24 months of imprisonment and to pay nearly $25 million in restitution. HealthRight was sentenced to pay $4.25 million in restitution.
“The significant sentences imposed by the court reflect the seriousness of this large-scale fraud scheme, in which the defendants deceived consumers in order to facilitate the distribution of drugs without proper medical oversight, and overbilled insurers for illegal prescriptions,” said Deputy Assistant Attorney General Arun G. Rao, head of the Civil Division’s Consumer Protection Branch. “The department will continue to work with law enforcement partners to prosecute those who take advantage of telemedicine to perpetrate fraud schemes that violate the Food, Drug, and Cosmetic Act.”
“The scale of the prescription-drug fraud scheme orchestrated by these defendants and their conspirators was astonishing, and the court’s prison sentences reflect the seriousness of their crimes,” said U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee. “The financial harm caused by health care fraud hurts all Americans, and the United States Attorney’s Office for the Eastern District of Tennessee will continue to support the cooperation among its federal law enforcement partners that is necessary to bring criminal swindlers like these defendants to justice.”
“This sentencing is the result of a multi-agency investigation into a complex telemedicine pharmacy fraud scheme, requiring substantial investigative resources,” said Special Agent in Charge Joseph E. Carrico of the FBI Knoxville Field Office. “The FBI, with its law enforcement partners, will remain vigilant to assure that unscrupulous individuals who exploit our health care system are brought to justice.”
“Distributing misbranded prescription drugs in the U.S. marketplace places patients’ health at risk,” said Special Agent in Charge Justin C. Fielder of the FDA Office of Criminal Investigations (OCI) Miami Field Office. “We will continue to pursue and bring to justice those who put profits ahead of public health.”
“Bolos and his co-conspirators abandoned their responsibilities in the health care industry through an elaborate fraud scheme and manipulated the system without regard for patient need or medical necessity to line their pockets,” said Special Agent in Charge John Condon of Homeland Security Investigations (HSI) Tampa. “These significant sentences should serve as a warning to anyone who attempts to deceive the government and steal from taxpayers.”
“Providers who solicit beneficiaries’ personal information and use it to defraud federal health care programs not only undermine the integrity of those programs; they also divert valuable taxpayer dollars for self-serving purposes,” said Special Agent in Charge Tamala E. Miles of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG is proud to work alongside our law enforcement partners to investigate and hold accountable perpetrators of federal health care fraud.”
“The U.S. Postal Service, Office of Inspector General, will continue to vigorously investigate those who commit frauds against federal benefit programs and the U.S. Postal Service,” said Special Agent in Charge Matthew Modafferi of the U.S. Postal Service, Office of Inspector General Northeast Area Field Office. “The sentences in this case sends a clear message to pharmaceutical companies that tactics like these will not be tolerated. The U.S. Postal Service, Office of Inspector General would like to thank our law enforcement partners and the Department of Justice for their dedication and efforts in this investigation.”
“Today’s sentencing holds the conspirators accountable for their reprehensible scheme that mislead patients and defrauded the federal government,” said Special Agent in Charge Amy K. Parker of OPM OIG. “The OPM OIG, along with our law enforcement partners, is committed to investigating individuals that seek to enrich themselves at the expense of patients, taxpayers, and the federal healthcare programs.”
Court documents and evidence at trial established that Bolos, Assad, and Palso owned and operated Synergy Pharmacy in Palm Harbor, Florida. Under their direction, Synergy employed Roix, a Florida telemarketer operating under the name HealthRight, to generate prescriptions for Synergy and the other pharmacies involved in the scheme. The prescriptions were typically for drugs such as pain creams, scar creams and vitamins. Evidence showed that to obtain the prescriptions, Roix used HealthRight’s telemarketing platform as a telemedicine service, cold-calling consumers and deceiving them into agreeing to accept the drugs and to provide their personal insurance information. HealthRight then paid doctors to authorize the prescriptions through its telemedicine platform, even though the doctors never communicated directly with the patients and relied solely on the telemarketers’ screening process as the basis for their authorizations. Because this faulty and fraudulent process made the prescriptions invalid, the drugs were misbranded under the Food, Drug and Cosmetic Act. Evidence showed that Synergy and the other pharmacies nonetheless dispensed the drugs to consumers as part of the scheme so that Bolos could submit fraudulent reimbursement claims.
Court documents and evidence at trial further established that during the conspiracy, which lasted from May 2015 through April 2018, Bolos and Palso, along with Assad, paid Roix millions of dollars to buy at least 60,000 invalid prescriptions generated by HealthRight. Evidence showed that Bolos selected specific medications for the prescriptions that he could submit for profitable reimbursements at inflated prices, and that Bolos, Palso, and Assad used illegal means to hide this activity from the PBMs so it could remain undetected.
The convictions resulted from a multi-year investigation conducted by the HHS-OIG (Nashville); FDA-OCI (Nashville); U.S. Postal Service, Office of Inspector General (Buffalo); FBI (Knoxville and Johnson City, Tennessee); OPM-OIG (Atlanta); and HSI (Tampa). The U.S. Marshals Service also assisted in the investigation and the forfeiture of assets.
Assistant U.S. Attorney Mac Heavener of the U.S. Attorney’s Office for the Eastern District of Tennessee and Senior Trial Attorney David Gunn of the Civil Division’s Consumer Protection Branch in Washington are prosecuting the case. They were assisted by Barbra Pemberton, Bryan Brandenburg and April Denard from the U.S. Attorney’s Office.
Defendants Sentenced in Tennessee for Multimillion-Dollar Nationwide Telemedicine Pharmacy Fraud SchemeRead the Press Release
GREENEVILLE, Tenn. This week, a federal judge in Greeneville, Tennessee, sentenced seven individuals and seven related corporate entities for their roles in a multimillion-dollar health care fraud scheme.
According to court documents and evidence presented at trial, Peter Bolos and his co-conspirators, Michael Palso, Andrew Assad, Scott Roix, Larry Smith, Mihir Taneja, Arun Kapoor and Maikel Bolos, as well as various companies owned or controlled by some of these individuals, deceived pharmacy benefit managers (PBMs), such as Express Scripts and CVS Caremark, regarding tens of thousands of prescriptions. The PBMs processed and approved claims for prescription drugs on behalf of insurance companies. Bolos and his co-conspirators defrauded the PBMs into authorizing millions of dollars’ worth of claims that private insurers such as Blue Cross Blue Shield of Tennessee, and public insurers such as Medicaid and TRICARE, paid to pharmacies controlled by the co-conspirators.
Peter Bolos was convicted by a federal jury in December 2021. Roix, Assad, Palso, Smith, Maikel Bolos, and various associated business entities pleaded guilty to their roles in the conspiracy. Taneja, Kapoor, and Sterling Knight pleaded guilty to felony misbranding in a conspiracy with Bolos. U.S. District Judge J. Ronnie Greer imposed sentences this week for all the defendants except Roix, whose sentencing hearing was rescheduled for June 15, 2022.
On May 16, the court sentenced Bolos to 14 years in prison and $2.5 million in forfeiture. On the same date, the court also sentenced Palso, 48, of Lutz, Florida, to 33 months in prison. Bolos and Palso also were each ordered to pay nearly $25 million in restitution.
On May 17, the court sentenced Smith, 52, of Tampa, to 42 months of imprisonment. The now-defunct corporate entities that Smith created, Alpha Omega Pharmacy, Germaine Pharmacy, Zoetic Pharmacy, ULD Wholesale LLC, and Tanith Enterprises, all were sentenced to pay nearly $25 million in restitution. The court also sentenced Taneja, 47, of Tampa, to 10 months of imprisonment and a $10,000 fine.
On May 18, the court sentenced Kapoor, 48, of Temple Terrace, Florida, to three years’ probation and a $10,000 fine. Sterling Knight, a now-defunct corporate entity that Kapoor and Taneja created, was sentenced to pay $21 million in restitution. The court also sentenced Maikel Bolos, 36, of Tampa, to 15 months of imprisonment and a $25,000 fine.
On May 19, the court sentenced Assad, 37, of Tampa, to 24 months of imprisonment and to pay nearly $25 million in restitution. HealthRight was sentenced to pay $4.25 million in restitution.
“The significant sentences imposed by the court reflect the seriousness of this large-scale fraud scheme, in which the defendants’ deceived consumers in order to facilitate the distribution of drugs without proper medical oversight, and overbilled insurers for illegal prescriptions,” said Deputy Assistant Attorney General Arun G. Rao, head of the Civil Division’s Consumer Protection Branch. “The department will continue to work with law enforcement partners to prosecute those who take advantage of telemedicine to perpetrate fraud schemes that violate the Food, Drug, and Cosmetic Act.”
“The scale of the prescription-drug fraud scheme orchestrated by these defendants and their conspirators was astonishing, and the Court’s prison sentences reflect the seriousness of their crimes,” said U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee. “The financial harm caused by health care fraud hurts all Americans, and the United States Attorney’s Office for the Eastern District of Tennessee will continue to support the cooperation among its federal law enforcement partners that is necessary to bring criminal swindlers like these defendants to justice.”
“This sentencing is the result of a multi-agency investigation into a complex telemedicine pharmacy fraud scheme, requiring substantial investigative resources,” said Special Agent in Charge Joseph E. Carrico of the FBI’s Knoxville Field Office. “The FBI, with its law enforcement partners, will remain vigilant to assure that unscrupulous individuals who exploit our health care system are brought to justice.”
“Distributing misbranded prescription drugs in the U.S. marketplace places patients’ health at risk,” said Special Agent in Charge Justin C. Fielder of the FDA Office of Criminal Investigations (OCI) Miami Field Office. “We will continue to pursue and bring to justice those who put profits ahead of public health.”
“Bolos and his co-conspirators abandoned their responsibilities in the health care industry through an elaborate fraud scheme and manipulated the system without regard for patient need or medical necessity to line their pockets,” said Special Agent in Charge John Condon of Homeland Security Investigations (HSI) Tampa. “These significant sentences should serve as a warning to anyone who attempts to deceive the government and steal from taxpayers.”
“Providers who solicit beneficiaries’ personal information and use it to defraud federal health care programs not only undermine the integrity of those programs; they also divert valuable taxpayer dollars for self-serving purposes,” said Special Agent in Charge Tamala E. Miles of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG is proud to work alongside our law enforcement partners to investigate and hold accountable perpetrators of federal health care fraud.”
“The U.S. Postal Service, Office of Inspector General, will continue to vigorously investigate those who commit frauds against federal benefit programs and the U.S. Postal Service,” said Special Agent in Charge Matthew Modafferi of the U.S. Postal Service, Office of Inspector General. Northeast Area Field Office. “The sentences in this case sends a clear message to pharmaceutical companies that tactics like these will not be tolerated. The U.S. Postal Service, Office of Inspector General would like to thank our law enforcement partners and the Department of Justice for their dedication and efforts in this investigation.”
“Today’s sentencing holds the conspirators accountable for their reprehensible scheme that mislead patients and defrauded the federal government,” said Amy K. Parker, Special Agent in Charge, OPM OIG. “The OPM OIG, along with our law enforcement partners, is committed to investigating individuals that seek to enrich themselves at the expense of patients, taxpayers, and the federal healthcare programs.”
Court documents and evidence at trial established that Bolos, Assad, and Palso owned and operated Synergy Pharmacy in Palm Harbor, Florida. Under their direction, Synergy employed Roix, a Florida telemarketer operating under the name HealthRight, to generate prescriptions for Synergy and the other pharmacies involved in the scheme. The prescriptions were typically for drugs such as pain creams, scar creams and vitamins. Evidence showed that to obtain the prescriptions, Roix used HealthRight’s telemarketing platform as a telemedicine service, cold-calling consumers and deceiving them into agreeing to accept the drugs and to provide their personal insurance information. HealthRight then paid doctors to authorize the prescriptions through its telemedicine platform, even though the doctors never communicated directly with the patients and relied solely on the telemarketers’ screening process as the basis for their authorizations. Because this faulty and fraudulent process made the prescriptions invalid, the drugs were misbranded under the Food, Drug and Cosmetic Act. Evidence showed that Synergy and the other pharmacies nonetheless dispensed the drugs to consumers as part of the scheme so that Bolos could submit fraudulent reimbursement claims.
Court documents and evidence at trial further established that during the conspiracy, which lasted from May 2015 through April 2018, Bolos and Palso, along with Assad, paid Roix millions of dollars to buy at least 60,000 invalid prescriptions generated by HealthRight. Evidence showed that Bolos selected specific medications for the prescriptions that he could submit for profitable reimbursements at inflated prices, and that Bolos, Palso, and Assad used illegal means to hide this activity from the PBMs so it could remain undetected.
The convictions resulted from a multi-year investigation conducted by the HHS-OIG (Nashville); FDA-OCI (Nashville); U.S. Postal Service, Office of Inspector General (Buffalo); FBI (Knoxville and Johnson City, Tennessee); OPM-OIG (Atlanta); and HSI (Tampa). The U.S. Marshals Service also assisted in the investigation and the forfeiture of assets.
Assistant U.S. Attorney Mac Heavener of the U.S. Attorney’s Office for the Eastern District of Tennessee and Senior Trial Attorney David Gunn of the Civil Division’s Consumer Protection Branch in Washington are prosecuting the case. They were assisted by Barbra Pemberton, Bryan Brandenburg and April Denard from the U.S. Attorney’s Office.
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Florida Pharmacy Owners Sentenced in Tennessee for Multimillion-Dollar Nationwide Telemedicine Pharmacy Fraud SchemeRead the Press Release
A federal judge in Greeneville, Tennessee, sentenced two Florida men for their roles in a multimillion-dollar health care fraud scheme.
Peter Bolos, 44, of Tampa, was convicted by a federal jury in December 2021 of conspiracy to commit health care fraud, 22 counts of mail fraud and introduction of a misbranded drug into interstate commerce. U.S. District Judge J. Ronnie Greer sentenced Bolos to 14 years in prison and ordered him to pay more than $24.6 million in restitution and $2.5 million in forfeiture. The court also sentenced Bolos’s co-defendant, Michael Palso, 48, of Tampa, to 33 months in prison and ordered him to pay more than $24.6 million in restitution. Palso previously pleaded guilty to his role in the conspiracy, as did 14 other defendants in related cases. The remaining defendants are scheduled to be sentenced later this week.
According to court documents and evidence presented at trial, Bolos, Palso and their co-conspirators, Andrew Assad, Scott Roix, Larry Smith, Mihir Taneja, Arun Kapoor and Maikel Bolos, as well as various other companies owned or controlled by some of these individuals, deceived pharmacy benefit managers (PBMs), such as Express Scripts and CVS Caremark, regarding tens of thousands of prescriptions. The PBMs processed and approved claims for prescription drugs on behalf of insurance companies. Bolos and his co-conspirators defrauded the PBMs into authorizing millions of dollars’ worth of claims that private insurers such as Blue Cross Blue Shield of Tennessee, and public insurers such as Medicaid and TRICARE, paid to pharmacies controlled by the co-conspirators.
“The significant sentences imposed by the court are a reflection of the gravity of the crimes that the defendants in this case committed,” said Deputy Assistant Attorney General Arun G. Rao, head of the Civil Division’s Consumer Protection Branch. “The department will continue to work with law enforcement partners to prosecute those who take advantage of telemedicine to perpetrate fraud schemes.”
“The scale of the prescription-drug fraud scheme orchestrated by these defendants and their conspirators was astonishing, and the Court’s prison sentences reflect the seriousness of their crimes,” said U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee. “The financial harm caused by health care fraud hurts all Americans, and the United States Attorney’s Office for the Eastern District of Tennessee will continue to support the cooperation among its federal law enforcement partners that is necessary to bring criminal swindlers like these defendants to justice.”
“This sentencing is the result of a multi-agency investigation into a complex telemedicine pharmacy fraud scheme, requiring substantial investigative resources,” said Special Agent in Charge Joseph E. Carrico of the FBI’s Knoxville Field Office. “The FBI, with its law enforcement partners, will remain vigilant to assure that unscrupulous individuals who exploit our health care system are brought to justice.”
“Distributing misbranded prescription drugs in the U.S. marketplace places patients’ health at risk,” said Special Agent in Charge Justin C. Fielder of the FDA Office of Criminal Investigations (OCI) Miami Field Office. “We will continue to pursue and bring to justice those who put profits ahead of public health.”
“Bolos and his co-conspirators abandoned their responsibilities in the health care industry through an elaborate fraud scheme and manipulated the system without regard for patient need or medical necessity to line their pockets,” said Special Agent in Charge John Condon of Homeland Security Investigations (HSI) Tampa. “This significant sentence should serve as a warning to anyone who attempts to deceive the government and steal from taxpayers.”
“Providers who solicit beneficiaries’ personal information and use it to defraud federal health care programs not only undermine the integrity of those programs; they also divert valuable taxpayer dollars for self-serving purposes,” said Special Agent in Charge Tamala E. Miles of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG is proud to work alongside our law enforcement partners to investigate and hold accountable perpetrators of federal health care fraud.”
“The U.S. Postal Service, Office of Inspector General, will continue to vigorously investigate those who commit frauds against federal benefit programs and the U.S. Postal Service,” said Special Agent in Charge Matthew Modafferi of the U.S. Postal Service, Office of Inspector General Northeast Area Field Office. “The sentencing in this case sends a clear message to pharmaceutical companies that tactics like these will not be tolerated. The U.S. Postal Service, Office of Inspector General would like to thank our law enforcement partners and the Department of Justice for their dedication and efforts in this investigation.”
Court documents and evidence at trial established that Bolos, Assad and Palso owned and operated Synergy Pharmacy in Palm Harbor, Florida. Under their direction, Synergy employed Scott Roix, a Florida telemarketer operating under the name HealthRight, to generate prescriptions for Synergy and the other pharmacies involved in the scheme. The prescriptions were typically for drugs such as pain creams, scar creams and vitamins. To obtain the prescriptions, Roix used HealthRight’s telemarketing platform as a telemedicine service, cold-calling consumers and deceiving them into agreeing to accept the drugs and to provide their personal insurance information. HealthRight then paid doctors to authorize the prescriptions through its telemedicine platform, even though the doctors never communicated directly with the patients and relied solely on the telemarketers’ screening process as the basis for their authorizations. Because this faulty and fraudulent process made the prescriptions invalid, the drugs were misbranded under the Food, Drug and Cosmetic Act. Synergy and the other pharmacies nonetheless dispensed the drugs to consumers as part of the scheme, so that Bolos could submit fraudulent reimbursement claims.
Court documents and evidence at trial established that during the conspiracy, which lasted from May 2015 through April 2018, Bolos and Palso, along with co-defendant Andrew Assad, paid Roix millions of dollars to buy at least 60,000 invalid prescriptions generated by HealthRight. Bolos selected specific medications for the prescriptions that he could submit for profitable reimbursements at inflated prices. In addition, Bolos, Palso, and Assad used illegal means to hide his activity from the PBMs so that they could remain undetected.
The sentencings for the remaining defendants — all of whom pleaded guilty prior to trial — are scheduled to occur later this week. Larry Smith, Alpha-Omega Pharmacy, Germaine Pharmacy, Zoetic Pharmacy, Tanith Enterprises LLC, ULD Wholesale Group and Taneja will be sentenced on May 17. Kapoor, Sterling Knight Pharmaceuticals and Maikel Bolos will be sentenced on May 18. Assad, Roix and HealthRight LLC will be sentenced on May 19. All of the sentencings will occur before Judge Greer in the U.S. District Court for the Eastern District of Tennessee at Greeneville.
The trial verdict and plea agreements resulted from a multi-year investigation conducted by the HHS-OIG (Nashville); FDA-OCI (Nashville); U.S. Postal Service, Office of Inspector General (Buffalo); FBI (Knoxville and Johnson City, Tennessee); OPM-OIG (Atlanta); and HSI (Tampa). The U.S. Marshals Service also assisted in the investigation and the forfeiture of assets.
Assistant U.S. Attorney Mac Heavener of the U.S. Attorney’s Office for the Eastern District of Tennessee and Senior Trial Attorney David Gunn of the Civil Division’s Consumer Protection Branch in Washington are prosecuting the case. They were assisted by Barbra Pemberton, Bryan Brandenburg and April Denard from the U.S. Attorney’s Office.
Florida Pharmacy Owners Sentenced in Tennessee for Multimillion-Dollar Nationwide Telemedicine Pharmacy Fraud SchemeRead the Press Release
GREENEVILLE, Tenn. A federal judge in Greeneville, Tennessee, sentenced two Florida men for their roles in a multimillion-dollar health care fraud scheme.
Peter Bolos, 44, of Tampa, was convicted by a federal jury in December 2021 of conspiracy to commit health care fraud, 22 counts of mail fraud and introduction of a misbranded drug into interstate commerce. U.S. District Judge J. Ronnie Greer sentenced Bolos to 14 years in prison and ordered him to pay more than $24.6 million in restitution and $2.5 million in forfeiture. The court also sentenced Bolos’s co-defendant, Michael Palso, 48, of Tampa, to 33 months in prison and ordered him to pay more than $24.6 million in restitution. Palso previously pleaded guilty to his role in the conspiracy, as did 14 other defendants in related cases. The remaining defendants are scheduled to be sentenced later this week.
According to court documents and evidence presented at trial, Bolos, Palso and their co-conspirators, Andrew Assad, Scott Roix, Larry Smith, Mihir Taneja, Arun Kapoor, and Maikel Bolos, as well as various other companies owned or controlled by some of these individuals, deceived pharmacy benefit managers (PBMs), such as Express Scripts and CVS Caremark, regarding tens of thousands of prescriptions. The PBMs processed and approved claims for prescription drugs on behalf of insurance companies. Bolos and his co-conspirators defrauded the PBMs into authorizing millions of dollars’ worth of claims that private insurers such as Blue Cross Blue Shield of Tennessee, and public insurers such as Medicaid and TRICARE, paid to pharmacies controlled by the co-conspirators.
“The significant sentences imposed by the court are a reflection of the gravity of the crimes that the defendants in this case committed,” said Deputy Assistant Attorney General Arun G. Rao, head of the Civil Division’s Consumer Protection Branch. “The department will continue to work with law enforcement partners to prosecute those who take advantage of telemedicine to perpetrate fraud schemes.”
“The scale of the prescription-drug fraud scheme orchestrated by these defendants and their conspirators was astonishing, and the Court’s prison sentences reflect the seriousness of their crimes,” said U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee. “The financial harm caused by health care fraud hurts all Americans, and the United States Attorney’s Office for the Eastern District of Tennessee will continue to support the cooperation among its federal law enforcement partners that is necessary to bring criminal swindlers like these defendants to justice.”
“This sentencing is the result of a multi-agency investigation into a complex telemedicine pharmacy fraud scheme, requiring substantial investigative resources,” said Special Agent in Charge Joseph E. Carrico of the FBI’s Knoxville Field Office. “The FBI, with its law enforcement partners, will remain vigilant to assure that unscrupulous individuals who exploit our health care system are brought to justice.”
“Distributing misbranded prescription drugs in the U.S. marketplace places patients’ health at risk,” said Special Agent in Charge Justin C. Fielder of the FDA Office of Criminal Investigations (OCI) Miami Field Office. “We will continue to pursue and bring to justice those who put profits ahead of public health.”
“Bolos and his co-conspirators abandoned their responsibilities in the health care industry through an elaborate fraud scheme and manipulated the system without regard for patient need or medical necessity to line their pockets,” said Special Agent in Charge John Condon of Homeland Security Investigations (HSI) Tampa. “This significant sentence should serve as a warning to anyone who attempts to deceive the government and steal from taxpayers.”
“Providers who solicit beneficiaries’ personal information and use it to defraud federal health care programs not only undermine the integrity of those programs; they also divert valuable taxpayer dollars for self-serving purposes,” said Special Agent in Charge Tamala E. Miles of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG is proud to work alongside our law enforcement partners to investigate and hold accountable perpetrators of federal health care fraud.”
“The U.S. Postal Service, Office of Inspector General, will continue to vigorously investigate those who commit frauds against federal benefit programs and the U.S. Postal Service,” said Special Agent in Charge Matthew Modafferi of the U.S. Postal Service, Office of Inspector General Northeast Area Field Office. “The sentencing in this case sends a clear message to pharmaceutical companies that tactics like these will not be tolerated. The U.S. Postal Service, Office of Inspector General would like to thank our law enforcement partners and the Department of Justice for their dedication and efforts in this investigation.”
Court documents and evidence at trial established that Bolos, Assad and Palso owned and operated Synergy Pharmacy in Palm Harbor, Florida. Under their direction, Synergy employed Scott Roix, a Florida telemarketer operating under the name HealthRight, to generate prescriptions for Synergy and the other pharmacies involved in the scheme. The Prescriptions were typically for drugs such as pain creams, scar creams and vitamins. To obtain the prescriptions, Roix used HeathRight’s telemarketing platform as a telemedicine service, cold-calling consumers and deceiving them into agreeing to accept the drugs and to provide their personal insurance information. HeathRight then paid doctors to authorize the prescriptions through its telemedicine platform, even though the doctors never communicated directly with the patients and relied solely on the telemarketers’ screening process as the basis for their authorizations. Because this faulty and fraudulent process made the prescriptions invalid, the drugs were misbranded under the Food, Drug and Cosmetic Act. Synergy and the other pharmacies nonetheless dispensed the drugs to consumers as part of the scheme, so that Bolos could submit fraudulent reimbursement claims.
Court documents and evidence at trial established that during the conspiracy, which lasted from May 2015 through April 2018, Bolos and Palso, along with co-defendant Andrew Assad, paid Roix millions of dollars to buy at least 60,000 invalid prescriptions generated by HealthRight. Bolos selected specific medications for the prescriptions that he could submit for profitable reimbursements at inflated prices. In addition, Bolos, Palso, and Assad used illegal means to hide his activity from the PBMs so that they could remain undetected.
The sentencing for the remaining defendants – all of whom pleaded guilty prior to trial – are scheduled to occur later this week. Larry Smith, Alpha-Omega Pharmacy, Germaine Pharmacy, Zoetic Pharmacy, Tanith Enterprises LLC, ULD Wholesale Group, and Taneja will be sentenced on May 17. Kapoor, Sterling Knight Pharmaceuticals and Maikel Bolos will be sentenced on May 18. Assad, Roix and HeathRight LLC will be sentenced on May 19. All of the sentencings will occur before Judge Greer in the U.S. District Court for the Eastern District of Tennessee at Greeneville.
The trial verdict and plea agreements resulted from a multi-year investigation conducted by the HHS-OIG (Nashville); FDA-OCI (Nashville); U.S. Postal Service, Office of Inspector General (Buffalo); FBI (Knoxville and Johnson City, Tennessee); OPM-OIG (Atlanta); and HSI (Tampa). The U.S. Marshals Service also assisted in the investigation and the forfeiture of assets.
Assistant U.S. Attorney Mac Heavener of the U.S. Attorney’s Office for the Eastern District of Tennessee and Senior Trial Attorney David Gunn of the Civil Division’s Consumer Protection Branch in Washington are prosecuting the case. They were assisted by Barbra Pemberton, Bryan Brandenburg, and April Denard from the U.S. Attorney’s Office.
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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 Wednesday, May 11 through Tuesday, May 17, 2022.
“This week, we gather to pay tribute to the law enforcement officers who sacrificed their lives in service to our country,” said Attorney General Garland. “We remember the courage with which they worked and lived. And we recommit ourselves to the mission to which they dedicated their lives. On behalf of a grateful Justice Department and a grateful nation, I extend my sincerest thanks and gratitude to the entire law enforcement community.”
“Our office is proud to work alongside all of our law enforcement partners who bravely serve the residents of the Eastern District of Tennessee,” said U.S. Attorney Hamilton. “We express our deepest gratitude and pay tribute to those who serve, and to those who made the ultimate sacrifice in the line of duty.”
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 15, specifically honors law enforcement officers killed or disabled in the line of duty. Based on data submitted to and analyzed by the National Law Enforcement Officer Memorial Fund (NLEOMF), 472 law enforcement officers died nationwide in the line of duty in 2021. Of that number, 319 succumbed to COVID-19.
Additionally, according to 2021 statistics reported by the Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 73 law enforcement officers who died in the line of duty in 2021 were killed as a result of felonious acts, whereas 56 died in accidents. Deaths resulting from felonious acts increased in 2021, rising more than 58 percent from the previous year. In 2021, unprovoked attacks[1] were the cause of 24 deaths significantly outpacing all other line of duty deaths resulting from felony acts and reaching the highest annual total in over 30 years of reporting. Additional LEOKA statistics can be found on FBI’s Crime Data Explorer website for the LEOKA program.
The names of the 619 fallen officers added this year to the wall at the National Law Enforcement Officer Memorial will be read on Friday, May 13, 2022, during a Candlelight Vigil in Washington, D.C., starting at 8:00 PM EDT. Those who wish to view the vigil live online, can watch on the NLEOMF YouTube channel found at https://www.youtube.com/TheNLEOMF. The schedule of National Police Week events is available on NLEOMF’s website.
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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.
[1] An unprovoked attack is defined as an attack on an officer not prompted by official contact at the time of the incident between the officer and the offender. Source: Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program.
PH.D. Chemist Sentenced to 168 Months for Conspiracy to Steal Traded Secrets, Economic Espionage, Theft of Trade Secrets, and Wire FraudRead the Press Release
GREENEVILLE, Tenn. – On May 9, 2022, Dr. Xiaorong You, aka Shannon You, 59, of Lansing, Michigan was sentenced to serve 168 months in prison by the Honorable J. Ronnie Greer, U.S. District Judge in the United States District Court for the Eastern District of Tennessee. Following her imprisonment, the defendant was also ordered to serve three years of supervised release and pay a $200,000 fine.
In April 2021, following a thirteen-day trial, a federal jury convicted You of conspiracy to commit trade secret theft in violation of 18 U.S.C. § 1832(a)(5), conspiracy to commit economic espionage in violation of 18 U.S.C. § 1831(a)(5), possession of stolen trade secrets in violation of 18 U.S.C. § 1832(a)(3), economic espionage 18 U.S.C. § 1831(a)(3), and wire fraud in violation of 18 U.S.C. § 1343.
According to court documents and evidence presented at trial, You stole valuable trade secrets related to formulations for bisphenol-A-free (BPA-free) coatings for the inside of beverage cans. You was granted access to the trade secrets while working at The Coca-Cola Company in Atlanta, Georgia, and Eastman Chemical Company in Kingsport, Tennessee. The stolen trade secrets belonged to major chemical and coating companies, including Akzo-Nobel, BASF, Dow Chemical, PPG, Toyochem, Sherwin Williams, and Eastman Chemical Company, and cost nearly $120,000,000 to develop.
You stole the trade secrets to set up a new BPA-free coating company in China. You and her Chinese corporate partner, Weihai Jinhong Group received millions of dollars in Chinese government grants to support the new company. Documents and other evidence presented at trial, showed You’s intent to benefit not only Weihai Jinhong Group, but also the governments of China, the Chinese province of Shandong, and the Chinese city of Weihai, as well as her intent to benefit the Chinese Communist Party.
Until recently, BPA was used universally to coat the inside of cans and other food and beverage containers to help minimize flavor loss and prevent the container from corroding or reacting with the food or beverage contained therein. However, due to BPA’s potential health risks, companies began searching for BPA-free alternatives. As witnesses from the chemical and coating companies testified at trial, developing these BPA-free alternatives was a very complex, expensive and time-consuming process.
Evidence presented at trial showed that from December 2012 through Aug. 31, 2017, You was employed as Principal Engineer for Global Research at Coca-Cola, which had agreements with numerous companies to conduct research and development, testing, analysis, and review of various BPA-free technologies. Because of You’s extensive education and experience with BPA and BPA-free coating technologies, she was one of a limited number of Coca-Cola employees with access to BPA-free trade secrets belonging to Akzo-Nobel, BASF, Dow Chemical, PPG, Toyochem, and Sherwin Williams. From approximately September 2017 through June 2018, You was employed as a packaging application development manager for Eastman Chemical Company in Kingsport, Tennessee, where she was one of a limited number of employees with access to trade secrets belonging to Eastman.
“As the evidence at trial showed, the defendant stole valuable trade secrets and intended to use them to benefit not only a foreign company, but also the government of China,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today’s sentence reflects the seriousness of this offense, as well as the Department of Justice’s commitment to protect our nation’s security by investigating and prosecuting those who steal U.S. companies’ intellectual property.”
“When companies invest huge amounts of time and money to develop world-class technologies, only to have those technologies stolen, the results are devastating,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Here, the defendant intended not only to enrich herself and her China-based partners, but also the government of China. Crimes like the defendant’s threaten both victim companies and the economic security of the nation as a whole. This case should serve as a warning to those entrusted with valuable trade secrets: if you break the law, you will be punished.”
“Stealing trade secrets of U.S. companies for the benefit of the Chinese government will be vigorously prosecuted in the Eastern District of Tennessee, and today’s 14-year sentence reflects the seriousness of this defendant’s crimes,” said U.S. Attorney for the Eastern District of Tennessee Francis M. Hamilton III. “The corporate vigilance and subsequent cooperation with federal law enforcement that brought this defendant to justice is to be commended; our national security depends on it.”
“Stealing technology isn’t just a crime against a company,” said Acting Assistant Director Bradley S. Benavides of the FBI’s Counterintelligence Division. “It’s a crime against American workers whose jobs and livelihoods are impacted. Today’s sentencing is a reminder that the FBI and its partners will hold accountable those who break our laws and threaten our economic and national security.”
“Ingenuity, innovation, and perseverance are the time-honored trademarks of American business and entrepreneurship. In the current global state of commerce, corporations are forced to place an increased emphasis on the protection of trade secrets and intellectual property. The FBI will not sit by while any nation-state attempts to steal or incentivizes the theft of trade secrets from successful corporations. The FBI is committed to working with industry to hold those accountable who would attempt to steal technology or trade secrets at the cost of American businesses, their employees, and their livelihood,” said Joseph E. Carrico, Special Agent-in-Charge of the Knoxville office of the Federal Bureau of Investigation.
Assistant Attorney General Matthew G. Olsen of the National Security Division; Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; and U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee made the announcement.
The FBI’s Knoxville Field Office and Department of Homeland Security’s Homeland Security Investigation (HSI) investigated the case.
Former Assistant U.S. Attorney T.J. Harker of the Eastern District of Tennessee; Senior Counsel Matt Walczewski of the U.S. Department of Justice’s Criminal Division’s Computer Crime and Intellectual Property Section; and Trial Attorney Nic Hunter of the U.S. Department of Justice’s National Security Division’s Counterintelligence and Export Control Section prosecuted the case.
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Harley Ray Humphrey Sentenced to 248 Months for Methamphetmine and Gun ChargesRead the Press Release
GREENEVILLE, Tenn. – May 9, 2022, Harley Ray Humphrey, 41, of Russellville, Tennessee, was sentenced to 248 months in prison by the Honorable J. Ronnie Greer, in the United States District Court for the Eastern District of Tennessee at Greeneville.
As part of the plea agreement filed with the court, Humphrey agreed to plead guilty to conspiracy to distribute 50 grams or more of methamphetamine, in violation of 21 U.S.C. §§ 846 and 841(b)(1)(A) and to possession of a firearm in furtherance of a drug trafficking offense, in violation of 18 U.S.C. § 924(c). Following his release from prison, Humphrey will be on 10 years of supervised release.
According to the written plea agreement filed with the court, Hamblen County narcotics detectives identified Humphrey as a supplier of methamphetamine to multiple individuals in Hamblen County, Tennessee. On January 25, 2020, Greene County officers responded to a call regarding trespassers at an abandoned property on Poncho Road, along with a report that shots had been fired. Officers found multiple individuals on the property, including Humphrey and another male who were located inside an old camper. Officers searched the camper and found 248 grams of methamphetamine, 12 Xanax pills, .6 grams of marijuana, and an M&P .22 caliber assault rifle. Four spent casings were found on the ground outside the camper. Humphrey had $2,500 cash on his person. Investigators obtained other information that Humphrey was regularly purchasing methamphetamine from the Atlanta, Georgia area and distributing it in Tennessee.
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 Hamblen County Sheriff’s Office, the Greene County Sheriff’s Office, and the Federal Bureau of Investigation.
Assistant U.S. Attorney Emily Swecker represented the United States.
This case was part of the High Intensity Drug Trafficking Areas (HIDTA) program. The HIDTA program enhances and coordinates drug control efforts among local, state, and federal law enforcement agencies. The program provides agencies with coordination, equipment, technology, and additional resources to combat drug trafficking and its harmful consequences in critical regions of the United States. The program began in 1988 when Congress authorized the Director of The Office of National Drug Control Policy designate areas within the United States that exhibit serious drug trafficking problems and harmfully impact other areas of the country as HIDTAs.
This case is also part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders working together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Chemist Sentenced for Stealing Trade Secrets, Economic Espionage and Wire FraudRead the Press Release
A federal judge in Greeneville, Tennessee, sentenced a Michigan woman today to 168 months, the equivalent of 14 years, in prison for a scheme to steal trade secrets, engage in economic espionage and commit fraud. The defendant was also ordered to serve three years of supervised release and pay a $200,000 fine.
In April 2021, following a 13-day jury trial, Xiaorong You, aka Shannon You, 59, of Lansing, Michigan, was convicted of conspiracy to commit trade secret theft, conspiracy to commit economic espionage, possession of stolen trade secrets, economic espionage and wire fraud.
“As the evidence at trial showed, the defendant stole valuable trade secrets and intended to use them to benefit not only a foreign company, but also the government of China,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today’s sentence reflects the seriousness of this offense, as well as the Department of Justice’s commitment to protect our nation’s security by investigating and prosecuting those who steal U.S. companies’ intellectual property.”
“When companies invest huge amounts of time and money to develop world-class technologies, only to have those technologies stolen, the results are devastating,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Here, the defendant intended not only to enrich herself and her China-based partners, but also the government of China. Crimes like the defendant’s threaten both victim companies and the economic security of the nation as a whole. This case should serve as a warning to those entrusted with valuable trade secrets: if you break the law, you will be punished.”
“Stealing trade secrets of U.S. companies for the benefit of the Chinese government will be vigorously prosecuted in the Eastern District of Tennessee, and today’s 14-year sentence reflects the seriousness of this defendant’s crimes,” said U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee. “The corporate vigilance and subsequent cooperation with federal law enforcement that brought this defendant to justice is to be commended; our national security depends on it.”
“Stealing technology isn’t just a crime against a company,” said Acting Assistant Director Bradley S. Benavides of the FBI’s Counterintelligence Division. “It’s a crime against American workers whose jobs and livelihoods are impacted. Today’s sentencing is a reminder that the FBI and its partners will hold accountable those who break our laws and threaten our economic and national security.”
“Ingenuity, innovation, and perseverance are the time-honored trademarks of American business and entrepreneurship," said Special Agent in Charge Joseph E. Carrico of the FBI's Knoxville Field Office. "In the current global state of commerce, corporations are forced to place an increased emphasis on the protection of trade secrets and intellectual property. The FBI will not sit by while any nation-state attempts to steal or incentivizes the theft of trade secrets from successful corporations. The FBI is committed to working with industry to hold those accountable who would attempt to steal technology or trade secrets at the cost of American businesses, their employees, and their livelihood."
According to court documents and evidence presented at trial, You stole valuable trade secrets related to formulations for bisphenol-A-free (BPA-free) coatings for the inside of beverage cans. You was granted access to the trade secrets while working at The Coca-Cola Company in Atlanta, and Eastman Chemical Company in Kingsport, Tennessee. The stolen trade secrets belonged to major chemical and coating companies including Akzo-Nobel, BASF, Dow Chemical, PPG, Toyochem, Sherwin Williams and Eastman Chemical Company, and cost nearly $120 million to develop.
You stole the trade secrets to set up a new BPA-free coating company in China. You and her Chinese corporate partner, Weihai Jinhong Group, received millions of dollars in Chinese government grants to support the new company (including a Thousand Talents Plan award). You’s Thousand Talents Program application and other evidence presented at trial showed that she intended to benefit not only Weihai Jinhong Group, but also the governments of China, the Chinese province of Shandong, the Chinese city of Weihai and the Chinese Communist Party.
Until recently, BPA was used to coat the inside of cans and other food and beverage containers to help minimize flavor loss and prevent the container from corroding or reacting with the food or beverage contained therein. However, due to BPA’s potential health risks, companies began searching for BPA-free alternatives. Developing these BPA-free alternatives was a very expensive and time-consuming process.
From December 2012 through August 2017, You was employed as Principal Engineer for Global Research at Coca-Cola, which had agreements with numerous companies to conduct research and development, testing, analysis and review of various BPA-free technologies. Because of You’s extensive education and experience with BPA and BPA-free coating technologies, she was one of a limited number of Coca-Cola employees with access to BPA-free trade secrets belonging to Akzo-Nobel, BASF, Dow Chemical, PPG, Toyochem and Sherwin Williams. From approximately September 2017 through June 2018, You was employed as a packaging application development manager for Eastman Chemical Company in Kingsport, Tennessee, where she was one of a limited number of employees with access to trade secrets belonging to Eastman.
The FBI’s Knoxville Field Office and HSI investigated the case.
Assistant U.S. Attorney Mac D. Heavener III for the Eastern District of Tennessee; Senior Counsel Matt Walczewski of the Criminal Division’s Computer Crime and Intellectual Property Section; and Trial Attorney Nic Hunter of the National Security Division’s Counterintelligence and Export Control Section and are prosecuting the case. Valuable assistance was provided by Assistant U.S. Attorney T.J. Harker for the Eastern District of Tennessee.
Maryville Man Sentenced to 109 Months in Prison for Distributing and Possessing Child PornographyRead the Press Release
KNOXVILLE, Tenn. – On May 5, 2022, Katherine A. Crytzer, United States District Judge for the Eastern District of Tennessee, sentenced Bradley Todd Dixon, age 37, to serve 109 months in federal prison for distributing and possessing child pornography. Following his imprisonment, Dixon will be supervised by the United States Probation Office for 15 years and will be required to register with the state sex offender registry in any state in which he lives, works, or attends school.
According to the filed plea agreement, Dixon admitted that he distributed child pornography to others in 2016 and in 2020, in violation of 18 U.S.C. § 2522A(a)(2)(B), and possessed child pornography in 2018, in violation of 18 U.S.C. § 2252A(a)(5)(B). Forensic analyses of Dixon’s computer devices pursuant to federal search warrants uncovered images and videos and other evidence linking Dixon to the distribution of child pornography.
The case was jointly investigated by the Knoxville Police Department’s Internet Crimes Against Children Unit and the Department of Homeland Security, Homeland Security Investigations.
Assistant U.S. Attorney Matthew T. Morris represented the United States.
This case was brought forward 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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Federal Jury Convicts Bryan Cornelius on Multiple Drug Trafficking Conspiracies, Money Laundering Conspiracies, and Possession and Discharge of A Firearm in Furtherance of His Drug Trafficking CrimesRead the Press Release
KNOXVILLE, Tenn. – On April 26, 2022, following a six-day trial in United States District Court, Knoxville, Tenn., a jury convicted Bryan Cornelius, 31, of Knoxville, Tennessee, of Conspiracy to Distribute over 50 grams of Methamphetamine, Conspiracy to Distribute over one kilogram of heroin and over 40 grams of Fentanyl, Conspiracy to Distribute over 100 kilograms of marijuana, Conspiracy to commit Money Laundering, Distributing over 50 grams of Methamphetamine, and Possession and Discharge of a Firearm in furtherance of his drug trafficking crimes.
Sentencing for Cornelius is set for October 3, 2022, at 2:00 p.m., in the United States District Court before United States District Court Judge Thomas A. Varlan, in Knoxville, Tennessee. Cornelius faces a sentence of life in prison.
The evidence presented at trial included wiretaps of multiple cellular phones, multiple search warrants at various Knoxville residences, narcotics, firearms, and cash seizures. The evidence showed that Cornelius, a member of the Gangster Disciples street gang, was ordering narcotics from different sources of supply in California and receiving packages of methamphetamine and marijuana through the United States Postal Service (USPS), Fed-Ex, and UPS throughout 2019 and that he maintained multiple addresses across Knoxville to stash his narcotics, firearms, and cash to facilitate his narcotics distribution. In addition, the evidence showed that, in furtherance of his drug trafficking, at approximately 2:45 p.m. on November 21, 2019, Cornelius, along with two others, drove by the Stop-n-Go on Brooks Avenue and Cornelius fired fifteen rounds of 7.62mm into a Mercedes-Benz. The driver sustained two non-life-threatening gunshot wounds.
Cornelius was the one defendant in a 23-person indictment who proceeded to trial; all other defendants entered guilty pleas.
Law enforcement agencies participating in the joint investigation which led to indictment and subsequent conviction of Cornelius included the Federal Bureau of Investigation (FBI) HIDTA Task Force and the United States Postal Inspection Service (USPIS). The FBI HIDTA Task Force includes the Roane County Sheriff’s Office, Knoxville Police Department, Knox County Sheriff’s Office, Blount County Sheriff’s Office, and Sevier County Sheriff’s Office. The Tennessee Bureau of Investigation, the Drug Enforcement Administration, also assisted in this investigation by conducting drug analysis on seized narcotics in the case.
“This prosecution is part of the Department of Justice’s comprehensive strategy to reduce violence and increase safety in the community by prosecuting violent criminals who use firearms in furtherance of their distribution of highly addictive and dangerous drugs, such as fentanyl and methamphetamine,” said United States Attorney Francis M. Hamilton III.
“Illegal drugs are the scourge of society and the cause of devastation for many families. The FBI, along with our federal, state, and local law enforcement partners are committed to identifying, disrupting, and holding those accountable who are responsible for harming our communities through their illegal activities,” said FBI Special Agent in Charge Joe Carrico.
“The Postal Service has no interest in being the unwitting accomplice to anyone using the U.S. Mail to distribute illegal drugs or other harmful substances,” said Tommy D. Coke, U.S. Postal Inspector in Charge of the Atlanta Division. “We will continue to work with our law enforcement partners to keep dangerous drugs out of the communities we serve.”
Assistant U.S. Attorneys Cynthia Davidson and Alan Kirk represented the United States at trial.
This case was part of the Department's Organized Crime Drug Enforcement Task Force (OCDETF) and the HIDTA programs. OCDETF is the primary weapon of the United States against the highest-level drug trafficking organizations operating within the United States, importing drugs into the United States, or laundering the proceeds of drug trafficking. The HIDTA program enhances and coordinates drug control efforts among local, State, and Federal law enforcement agencies. The program provides agencies with coordination, equipment, technology, and additional resources to combat drug trafficking and its harmful consequences in critical regions of the United States.
This case is also part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders working together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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10 Members of Drug Trafficking Organization Indicted for Conspiring to Distribute Fentanyl and MethamphetamineRead the Press Release
CHATTANOOGA, Tenn. On April 26, 2022, a federal grand jury in Chattanooga, Tennessee, returned a four-count indictment against 10 individuals: Marquis Rollins, also known as “Quez,” also known as “Q”; Emanuel Rollins, also known as “E Man”; Malik Young; Keunte Suttles, also known as “Kay Kay Watts”; Michael Garrick; Brandon Rakestraw, also known as “Lil Buddha”; Xavier Bickerstaff; Michael Jones, Jr., also known as “Mike Watts”; Taurus Moore; and Corey Long, all of Chattanooga. A trial date has not yet been set.
The indictment alleges that between November 2021 and March 2022, in the Eastern District of Tennessee, the defendants engaged in a conspiracy to distribute 400 grams or more of a mixture and substance containing Fentanyl and 50 grams or more of Methamphetamine, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(A).
If convicted, each defendant faces a mandatory minimum term of ten years’ imprisonment and up to a maximum of life imprisonment, five years on supervised release, and a fine of up to $10,000,000.
The indictment is the result of an investigation by the Drug Enforcement Administration (DEA) Chattanooga Resident Office, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Chattanooga Police Department, Hamilton County Sheriff’s Office, and Red Bank Police Department. Numerous agencies from the Appalachia High Intensity Drug Trafficking Area (HIDTA) Task Force assisted in the investigation.
The investigation was conducted as part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
The investigation was also conducted as part of DEA’s Operation Overdrive. Launched February 1, 2022, Operation Overdrive uses a data-driven, intelligence-led approach to identify and dismantle criminal drug networks operating in areas with the highest rates of violence and overdoses. DEA, working in partnership with its fellow federal, state, and local law enforcement agencies, has mapped the threats and initiated enforcement operations against those networks in 34 locations across 23 states in the initial phase of Operation Overdrive.
Special Assistant United States Attorney Kevin T. Brown will represent the United States. Brown is a Special Assistant City Attorney with the Chattanooga Police Department assigned to the United States Attorney’s Office to prosecute violations of federal firearm and drug laws.
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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Michigan Man Arrested for Federal Kidnapping, Firearms, and Drug Trafficking ChargesRead the Press Release
KNOXVILLE, Tenn. — Michael Harris, 35, was arrested Sunday, April 24, 2022, in Knoxville, Tennessee by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Knoxville Police Department (KPD), and Knox County Sheriff’s Office on charges involving kidnapping an officer assisting federal authorities, prior convicted felon in possession of firearms, and possession with intent to distribute narcotics.
Harris made his initial appearance today, April 26, 2022, at 11:00 am in United States District Court in Knoxville, before the Honorable Debra C. Poplin, United States Magistrate Judge, and was detained pending further proceedings.
According to the complaint filed on April 25, 2022, ATF agents, Knoxville Police officers with the Organized Crime Unit and Special Operation Squad, and Knox County Sheriff’s Office deputies were conducting a surveillance operation at the RK Gun Show located at the Expo Center, located at 5441 Clinton Highway, I-75 Expo Center in Knoxville, Tennessee.
During the operation, law enforcement observed Harris purchasing several firearms and firearm accessories at various vendors inside the R.K. Gun Show. Harris was also using Facetime as he walked around the gun show showing different guns and accessories to an unknown individual. Due to this suspicious activity, law enforcement followed Harris to a vehicle in the parking lot of the Knoxville Expo Center and observed him loading firearms and firearm accessories into the back of a rented, red Chrysler minivan.
After a brief surveillance, officers located the red Chrysler minivan parked in a parking spot at the Shell gas station located at 6730 Clinton Highway, Knoxville, Tennessee, and activated their blue lights on their marked vehicles and approached the minivan. Officers immediately smelled the odor of marijuana wafting from the minivan. Harris exited the minivan, and an officer began to search the backseat area of the minivan. Harris noticed this and re-entered the minivan and drove away with the officer still inside. The officer in the minivan attempted to subdue Harris and to gain control of the vehicle. Harris drove the minivan into oncoming traffic and crashed into another vehicle. Harris fled the violent accident on foot but was apprehended in the adjacent woods a short time later. The officer in the minivan sustained serious injuries. Officers recovered approximately two pounds of methamphetamine, additional quantities of heroin and marijuana, and multiple firearms and rounds of ammunition during a subsequent search of the minivan. Harris was determined to be a convicted felon.
The details of the charges, which include: federal kidnapping, 18 U.S.C. § 1201(a)(5), possession of firearms and ammunition by a convicted felon, 18 U.S.C. § 922(g), and possession with intent to distribute more than fifty grams of methamphetamine, United States Code, Section 841(a)(1) and 841(b)(1)(A) - are outlined in the arrest warrant and supporting affidavit, which are filed as public records in the United States District Court for the Eastern District of Tennessee at Knoxville, Case Number 3:22-mj-1110.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee made the announcement.
The investigation was led by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Knoxville Police Department, and the Knoxville Sheriff’s Office.
The government is represented by Assistant U.S. Attorney Anne-Marie Svolto of the Eastern District of Tennessee.
Members of the public are reminded that these are only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
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DEA National Prescription Drug Take Back DayRead the Press Release
KNOXVILLE, Tenn. On Saturday, April 30th, 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 22nd nationwide event since its inception 11 years ago. Last spring, Americans turned in nearly 744,082 pounds of prescription drugs at nearly 4,982 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.
To keep everyone safe, collection sites will follow CDC COVID-19 guidelines and regulations.
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 30th, 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 30th 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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Court Appoints United States Attorney for the Eastern District of TennesseeRead the Press Release
KNOXVILLE, Tenn. – The United States District Court for the Eastern District of Tennessee has appointed Francis M. (Trey) Hamilton III as United States Attorney for the Eastern District of Tennessee pursuant to 28 U.S.C. § 546(d). The appointment took effect on April 25, 2022, and Chief Judge Travis R. McDonough administered the oath of office for Mr. Hamilton’s appointment prior to its effective date. Mr. Hamilton will serve in this capacity until the vacancy is filled by a Presidentially-appointed, Senate-confirmed nominee. Mr. Hamilton had been serving as Interim U.S. Attorney by appointment of Attorney General Merrick B. Garland following his service as the district’s Acting U.S. Attorney.
A native of Nashville, Tennessee, Mr. Hamilton joined the U.S. Attorney’s Office for the Eastern District of Tennessee as an Assistant U.S. Attorney in 2002. Since then, he has served in numerous leadership positions, including First Assistant U.S. Attorney, Deputy Criminal Division Chief, and Senior Litigation Counsel. Over his career, he has tried numerous complex prosecutions, including corporate fraud, health care fraud, mortgage fraud, government-contract fraud, drug-trafficking, and criminal civil rights violations. As a supervisor, he has also overseen matters involving the office’s national security, public corruption, child exploitation, and monetary recoveries criminal practice areas. In 2020, Mr. Hamilton was awarded the Attorney General’s Claudia J. Flynn Award for Professional Responsibility.
Mr. Hamilton earned his undergraduate degree from Rhodes College in Memphis, Tennessee, where he graduated magna cum laude and was inducted into Phi Beta Kappa. He received his law degree from Washington & Lee University School of Law in Lexington, Virginia, where he graduated summa cum laude, was inducted into the Order of the Coif, and served on the Washington & Lee Law Review. Following law school, he served as law clerk to the Honorable Jerome Turner, United States District Judge for the Western District of Tennessee.
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Rhea County Man Pleas Guilty to CARES Act Wire FraudRead the Press Release
CHATTANOOGA, Tenn. – On April 21, 2022, George Thacker, 59, of Spring City, Tennessee, pleaded guilty to one count of wire fraud related to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act.
The CARES Act is a federal law designed to provide emergency financial assistance to the millions of Americans suffering the economic effects brought about by the COVID-19 pandemic. Among other things, it authorized billions of dollars in forgivable loans to small businesses through programs referred to as the Paycheck Protection Program (“PPP”) and the Economic Injury Disaster Loan (“EIDL”) Program. The funds from those programs were intended to ensure that small businesses suffering economic impacts related to the coronavirus pandemic could continue to operate and pay expenses, including their employees’ wages.
According to court filings, Thacker applied for and received over $600,000 in PPP and EIDL loan proceeds. When applying for the loans, Thacker falsely certified that he would use the funds to pay employees and for other operating expenses. Instead of using the money to its intended purpose, Thacker used the funds for his own enrichment, among other things, purchasing cryptocurrency and funding his personal investment accounts.
This investigation was led by the United States Secret Service.
Sentencing has been set for September 22, 2022, before the United States District Judge Charles E. Atchley, Jr. Thacker faces a maximum of 20-year prison sentence; $250,000 in fines; and supervised release for three years.
Assistant United States Attorney Kyle J. Wilson represented the United States.
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Kentucky Man Sentenced to 130 Months for Bank Robbery and CarjackingRead the Press Release
KNOXVILLE, Tenn.– On April 14, 2022, Jason William Graves, 43, currently of London, Kentucky, was sentenced to 130 months in prison by the Honorable Judge Thomas A. Varlan, in the United States District Court for the Eastern District of Tennessee at Knoxville.
As part of the plea agreement filed with the court, Graves pleaded guilty to an indictment charging him with one count of bank robbery in violation of 18 U.S.C. § 2113(a) and one count of carjacking in violation of 18 U.S.C. § 2119. Following his release from prison, Graves 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, Graves committed two bank robberies at banks located inside Walmart Supercenters in the Eastern District of Tennessee in May 2019. On or about June 21, 2019, Graves carjacked a victim at gunpoint at an AutoZone located in Knoxville, Tennessee and took the victim’s Chevrolet Trailblazer, which was later used to commit an additional robbery at a Walmart Money Center in Chattanooga, Tennessee.
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 Clinton Police Department, Chattanooga Police Department, Kingsport Police Department, and Federal Bureau of Investigation (FBI). This investigation was led by FBI Special Agents Mollie Treadway and Wesley Leatham.
Assistant United States Attorney LaToyia Carpenter represented the United States at sentencing.
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Federal Jury Convicts Morgan County Man of Child Exploitation and Escape Attempt ChargesRead the Press Release
KNOXVILLE, Tenn. – On April 13, 2022, a federal jury convicted a registered sex offender, Everett Eugene Miller, Jr., 55, of Sunbright, Tennessee, of enticement of a minor for sex, transporting a minor in interstate commerce for sex, committing those offenses while being required to register as a sex offender, and attempting to escape from the custody of the U.S. Marshals Service. As a result of the convictions, the defendant is subject to a prison sentence of 20 years up to life. Sentencing will be scheduled at a later date before the Honorable Katherine A. Crytzer, United States District Judge.
According to the evidence at trial, the investigation began when the Morgan County Sheriff’s Office received an anonymous tip that Miller, an over-the-road truck driver, was transporting a minor across state lines. When asked, the minor revealed that the defendant had transported her across-state lines and had coerced her to have sex with him in the sleeper cab of his truck. The Federal Bureau of Investigation (FBI) conducted consensual forensic exams of the minor’s cellular telephones, one of which the defendant had provided to the minor without her mother’s knowledge. A forensic exam pursuant to a search warrant was also performed on the defendant’s cellular telephone. The forensic exams revealed evidence which confirmed that the defendant had communicated extensively with the minor and that he had transported her across country. Additionally, witness testified that, after the defendant had been arrested and was detained in federal custody, he tried to escape from custody while at a medical facility to which he had been transported for a heart procedure.
The FBI conducted the investigation with assistance from the Morgan County Sheriff’s Office.
Assistant U.S. Attorneys Matthew T. Morris and Jennifer Kolman represented the United States in court.
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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Russellville Man Sentenced to 20 Years for Methamphetamine and Gun ChargesRead the Press Release
GREENEVILLE, Tenn. – On April 4, 2022, Lynn Richard Norton, 62, currently of Russellville, Tennessee, was sentenced to 240 months in prison followed by five years of supervised release by the Honorable J. Ronnie Greer, in the United States District Court for the Eastern District of Tennessee at Greeneville.
A federal jury convicted Norton of conspiracy to distribute more than 50 grams of methamphetamine, distribution of methamphetamine, and possession of a firearm by a convicted felon in March 2021. In determining the sentence, Judge Greer found Norton to be an Armed Career Criminal pursuant to the Armed Career Criminal Act, based on his criminal history.
According to evidence presented at trial, in 2019, Norton conspired to distribute more than 50 grams of methamphetamine with James Ward. Ward testified for the United States that he supplied Norton with two to four ounces of methamphetamine per week, and on two occasions, Norton sold Ward methamphetamine. On April 8, 2019, Norton sold methamphetamine and a Bryco Arms 9 mm pistol to a confidential informant who was working with the Hamblen County Sheriff’s Office.
The conviction and sentence resulted from an investigation by the Hamblen County Sheriff’s Office, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorneys Emily Swecker and Mac Heavener represented the United States.
The Appalachia HIDTA mission is to enhance and coordinate drug enforcement efforts of local, state, and federal law enforcement agencies within areas designated as High Intensity Drug Trafficking Areas by pursuing the disruption/dismantlement of Drug Trafficking Organizations, particularly as it relates to the specific drug threat of the Appalachian region.
This case is also part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders working together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Stoughton Man Sentenced to 10 Years for Bank Robberies in Wisconsin & TennesseeRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Todd Templeton, 52, Stoughton, Wisconsin was sentenced today by U.S. District Judge William M. Conley to 10 years in prison for three bank robberies. Templeton pleaded guilty to these charges on November 3, 2021.
On February 24, 2021, Templeton robbed the Associated Bank on King Street in Stoughton. He approached a teller, lifted his shirt to display a black handgun tucked into his waistband, and demanded money telling them “Don’t press any buttons.”
On February 26, 2021, the Dane County Sheriff’s Office responded to a residence in the Town of Dunn after Templeton crashed a stolen snowmobile and was warming his hands on the gas grill of the complainant’s porch. He admitted to drinking alcohol and using cocaine and was admitted to the hospital due to cold exposure injuries on his hands and feet.
On March 1, 2021, Templeton left the hospital against medical advice and stole a family member’s truck. On the morning of March 3, 2021, Templeton robbed the Associated Bank on Cottage Grove Road in Madison. He gave the teller a note stating that he was armed and demanded money.
On March 11, 2021, Templeton robbed the SunTrust Bank on East Third Street in Chattanooga, Tennessee. He approached a banker, pulled a handgun from his waistband, and said “I want you to empty the vault, this is a robbery.” He was later apprehended by FBI task force agents in Cleveland, Tennessee. Templeton claimed that he used a BB gun, which he had discarded.
At the time of these offenses, Templeton was on supervised release after serving approximately 11 years in federal prison for a 2007 bank robbery conviction. In that case, Templeton entered a bank in Baraboo, approached a teller and said, “Open the drawer and give me the money or you’ll be shot.” Three days later, he entered a bank in Janesville, exposed a black handgun in his waistband, and demanded money. After his initial term of supervised release was revoked in 2020, he was released from federal prison on January 27, 2021, and began a second term of federal supervision.
At sentencing, Judge Conley said that these were very serious offenses and noted the effects on the victims, specifically threats against their lives and displaying a handgun even if it was a BB gun as Templeton claimed. Judge Conley said that statistics relating to lowered criminal risk with age did not apply to Templeton, and the specific evidence here was to the contrary: that Templeton has escalated his behavior and went right back to committing bank robberies when released from prison. Judge Conley stated that in between periods of serial incarceration, Templeton has been unsuccessful on community supervision with numerous violations including drug use, failure to follow rules, and absconding, therefore a significant period of incarceration was necessary to protect the public.
In addition to imposing 10 years prison on the 2021 robberies, Judge Conley revoked Templeton’s supervised release in the 2007 case and sentenced him to an additional three years in prison, for a total of 13 years. Templeton was also ordered to serve three years of supervised release following his prison term and pay restitution.
The charges against Templeton were the result of investigations conducted by the Stoughton and Madison Police Departments, Chattanooga, Tennessee Police Department, Dane County Sheriff’s Office, and Federal Bureau of Investigation. The U.S. Attorney’s Office in the Eastern District of Tennessee assisted in this case. The prosecution of the case has been handled by Assistant U.S. Attorney Corey Stephan.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
Navy Deserter Sentenced to 25 Months in Prison for Identity TheftRead the Press Release
GREENEVILLE, Tenn.– On March 21, 2022, Jerry Leon Blankenship, 65, currently of Newport, Tennessee, was sentenced to 25 months in prison by the Honorable J. Ronnie Greer, in the United States District Court for the Eastern District of Tennessee at Greeneville.
As part of the plea agreement filed with the court, Blankenship agreed to plead guilty to an indictment charging him with one count of fraud involving a Social Security number, in violation of 42 U.S.C. § 408(a)(7)(B), and one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A. Following his release from prison, Blankenship will be on supervised release for three years.
According to filed court documents, in 1976, Blankenship enlisted in the United States Navy. The following year, after he completed basic training, he deserted, with a goal of avoiding future military service. Blankenship then assumed the name and identity of another individual. By doing so, Blankenship established a new life under the stolen name in Newport, Tennessee. According to court records, Blankenship had “been dishonest about his name with almost everyone, including his girlfriend of thirty years” and the mother of his three children. Since 2005, Blankenship had obtained three fraudulent Tennessee driver’s licenses in the victim’s name. Blankenship also used the victim’s name in a business that he and his girlfriend ran in Newport, Tennessee.
Authorities discovered Blankenship’s true identity after he obtained a COVID-19 vaccination at a Newport pharmacy. The real victim was notified of the vaccination that the real victim had not received. Store surveillance video showed Blankenship was the person who had obtained the vaccination under the victim’s name.
It is anticipated that Blankenship will face a military tribunal for his desertion.
The criminal indictment was the result of an investigation led by the Criminal Investigative Division of the Tennessee Highway Patrol, Sergeant James Knipper.
Assistant United States Attorney Mac D. Heavener, III represented the United States.
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Two Individuals and Four Companies Indicted for Price Fixing DVDs and Blu-Ray Discs Sold on the Amazon MarketplaceRead the Press Release
A federal grand jury in Knoxville, Tennessee, returned an indictment charging two individuals and four companies with participating in a conspiracy to fix prices of DVDs and Blu-Ray Discs sold on the Amazon Marketplace.
According to the one-count felony indictment filed in the U.S. District Court for the Eastern District of Tennessee, Victor Btesh, of Brooklyn, New York, and Bruce Fish of Hayfield, Minnesota; along with BDF Enterprises Inc., a Minnesota corporation; Michelle’s DVD Funhouse Inc., a New York corporation; MJR Prime LLC, a New York corporation; and Prime Brooklyn LLC, a New York corporation, were charged with conspiring with each other and others to fix prices of DVDs and Blu-Ray Discs sold through storefronts on the Amazon Marketplace. The price-fixing conspiracy was ongoing from at least as early as October 2016 until at least Oct. 29, 2019.
“This indictment – the fifth charge to date in the ongoing investigation – demonstrates our commitment to protecting consumers and prosecuting individuals who conspire to fix prices in online marketplaces,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division.
“Price-fixing conspiracies in online marketplaces harm consumers and will be prosecuted,” said U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee.
“This indictment shows that the FBI is dedicated to protecting American consumers from unfair prices in all areas of the marketplace,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI and our law enforcement partners will continue to investigate conspiracies to fix prices and hinder competition for all.”
“We are gratified to have contributed to this investigation and applaud the exceptional work by the investigative team for both protecting the individual consumer and the deterrence of activities in violation of the Sherman Act,” said Special Agent in Charge Ken Cleevely of the U.S. Postal Service, Office of Inspector General (USPS-OIG). “Along with our law enforcement partners, the USPS OIG will continue to aggressively investigate those who would engage in this type of harmful conduct.”
The Amazon Marketplace is an e-commerce platform owned and operated by Amazon.com Inc. that enables third-party vendors to sell new or used products alongside Amazon’s own offerings.
Four other individuals have been previously charged and pleaded guilty in this ongoing investigation.
A criminal violation of the Sherman Act carries a statutory maximum penalty of 10 years in prison and a $1 million criminal fine for individuals, and a $100 million fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Antitrust Division’s Chicago Office and the U.S. Attorney’s Office in the Eastern District of Tennessee are prosecuting the case, which was investigated with the assistance of the FBI’s New York Field Office and the USPS-OIG’s Contract Fraud Investigations Division.
Anyone with information concerning price fixing or other anticompetitive conduct related to the sale of DVDs, Blu-Rays Discs, or other products sold through Amazon Marketplace should contact the Antitrust Division’s Chicago Office at 312-984-7200, Antitrust Division’s Citizen Complaint Center at 888-647-3258 or www.justice.gov/atr/contact/newcase.html, FBI’s New York Field Office at 212-384-1000, or the USPS-OIG’s Fraud, Waste, & Misconduct Hotline at 888-877-7644.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Charles Phelps, Member of A Prison Gang, Sentenced to 156 Month for Conspiracy to Distribute MethamphetamineRead the Press Release
GREENEVILLE, Tenn. – On March 14, 2022, Charles Phelps, 36, currently of Nashville, Tennessee, was sentenced to 156 months by the Honorable J. Ronnie Greer, in the United States District Court for the Eastern District of Tennessee at Greeneville.
As part of the plea agreement filed with the court, Phelps pleaded guilty to an indictment charging him with one count of Conspiracy to Distribute 50 Grams or More of Actual Methamphetamine, U.S.C. 21 U.S.C. § § 846, 841(a)(1), and (b)(1)(A). Following his release from prison, Phelps will be on supervised release for five years.
According to the written plea agreement filed with the court, Phelps, a member of a prison gang led by co-defendant Charles Elsea, Jr., conspired with gang members and others to distribute large quantities of methamphetamine into Tennessee. One of Phelps’ roles was collecting and delivering money for the organization. On February 16, 2020, Phelps was traffic stopped with $119,000 in cash, concealed in the spare tire of his vehicle. The money was being transported out west to purchase pounds of methamphetamine. The money was seized by local law enforcement during the traffic stop. The investigation spanned the country, with multiple local and federal agencies working together to identify persons involved.
The criminal indictment was the result of an investigation by the DHS-HSI, DEA, USPS, and with the assistance of Tennessee Department of Correction Office of Investigations and Conduct; Elizabethton, and Carter County Joint Drug Task Force; Huron Undercover Narcotic Team with the Michigan State Police; the Arkansas Highway Patrol; Missouri Western Interdiction Task Force with the Kansas City, Missouri Police Department; California Visalia Police Department. This investigation was led by HSI Special Agent John Bulla.
Assistant U.S. Attorneys Meghan L. Gomez represented the United States at sentencing.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Tennessee Woman Pleads Guilty to Wire Fraud for Receiving Deceased Mother's Retirement BenefitsRead the Press Release
KNOXVILLE, Tenn. – Leslie Schwinzer, 46, of Knoxville, pleaded guilty to a one count Information of wire fraud in violation of 18 U.S.C. § 1343 in the United States District Court at Knoxville. Sentencing is set for July 14, 2022, at 11:00 a.m., before the Honorable Thomas A. Varlan, in United States District Court for the Eastern District of Tennessee at Knoxville.
Schwinzer faces a term of imprisonment of up to 20 years in prison and will be ordered to pay $56,351.55 in restitution to New York State and Local Retirement System (NYSLRS).
As part of the written plea agreement filed with the court on January 31, 2022, Schwinzer waived an indictment by a Federal Grand Jury and agreed to plead guilty to the aforementioned charge. Schwinzer admitted that she failed to notify the Social Security Administration (SSA) and the New York State Comptroller’s Office, NYSLRS from which Schwinzer’s mother received a pension benefit, that Schwinzer’s mother had passed away on July 3, 2018. Instead, Schwinzer continued to receive both monthly NYSLRS payments and bi-weekly Social Security payments into a joint bank account held with her mother after her mother’s death.
The plea agreement detailed that, in total, SSA and NYSLRS deposited $92,222.55 into the joint account after Schwinzer’s mother’s death. Schwinzer withdrew all the deposited funds from the account until she was questioned by the bank on December 19, 2019, about whether her mother had passed away. However, Schwinzer continued to allow SSA and NYSLRS payments to be made into the account until January 31, 2021. Schwinzer acknowledged that she was not lawfully permitted to retain the funds from SSA and NYSLRS. SSA was able to recover the funds that it had paid to the joint account following Schwinzer’s mother’s death. Schwinzer has agreed to pay $56,351.55 to NYSLRS.
This prosecution is the result of a joint investigation by the Social Security Administration Inspector General Office and the New York Comptroller’s Office.
Assistant United States Attorney Frank M. Dale Jr. represented the United States.
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Federal Jury Convicts Leader of A Prison Gang on Three Counts of Drug and Money Laundering OffensesRead the Press Release
GREENEVILLE, Tenn. - Following a six-day trial in United States District Court at Greeneville, a jury convicted Charles Elsea, Jr., 44, a longtime inmate of the Tennessee Department of Corrections, of conspiracy to distribute methamphetamine, marijuana, and money laundering.
Sentencing is set for August 8, 2022, at 10:30 a.m., before the Honorable J. Ronnie Greer, in United States District Court for the Eastern District of Tennessee at Greeneville. Elsea faces a maximum life sentence in prison, a ten-year minimum mandatory for Count one, and a term of supervised release of five years.
The trial was the result of a five-year investigation that began in the spring of 2017. The investigation spanned the country, multiple local and federal agencies worked together to bring this case to trial. Elsea was determined to not only be involved in the drug conspiracy but was the leader of the conspiracy. The evidence presented at trial demonstrated that Elsea was a leader of a prison gang and ran an entire drug organization behind prison walls, using smuggled cellphones to conduct his business outside the presence of the prison guards. Elsea conspired with gang members and others to distribute hundreds of pounds of methamphetamine across Tennessee. Elsea arranged multiple purchases of pounds of methamphetamine from his prison cell and directed coconspirators to transport the methamphetamine from California and Arizona to Tennessee. Elsea and his coconspirators also used the drug proceeds from the methamphetamine to create marijuana grow houses in and out of Tennessee. Elsea even started two marijuana grow operations during the pendency of this case, utilizing the jail’s video system to speak to coconspirators about the cultivation of marijuana.
The criminal indictment was the result of an investigation by the DHS-HSI, DEA, USPS and with the assistance of Tennessee Department of Correction Office of Investigations and Conduct; Elizabethton, and Carter County Joint Drug Task Force; Huron Undercover Narcotic Team with the Michigan State Police; the Arkansas Highway Patrol; Missouri Western Interdiction Task Force with the Kansas City, Missouri Police Department; California Visalia Police Department. This investigation was led by HSI Special Agent John Bulla.
Assistant U.S. Attorneys Meghan L. Gomez and J. Christian Lampe represented the United States at trial.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Federal Jury Convicts Claiborne County Man of Possession of Child PornographyRead the Press Release
KNOXVILLE, Tenn. – On March 7, 2022, following a two-day trial, a jury convicted Alexander Dewayne Noah, 25, of Tazewell, Tennessee, of possession of child pornography in violation of Title 18, United States Code, Section 2252A(a)(5)(B).
Sentencing is scheduled for July 14, 2022, before the Honorable Thomas A. Varlan, United States District Judge. Noah faces a term of imprisonment of up to 20 years, a term of supervised release of up to life, and he will also be required to register as a sex offender anywhere that he resides, works, or attends school.
According to the evidence presented at trial, the investigation began when the Department of Homeland Security, Homeland Security Investigations (HSI) received a tip from the National Center for Missing and Exploited Children that child pornography was being stored in a on online storage account. The ensuing investigation, including the execution of a federal search warrant at Noah’s residence, led to the federal indictment.
HSI and the Knoxville Police Department’s Internet Crimes Against Children Unit conducted the investigation.
Assistant U.S. Attorney Jennifer Kolman represented the United States at trial.
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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Florida Man Indicted for Wire Fraud, Bank Fraud, Money Laundering, and Aggravated Identity TheftRead the Press Release
GREENEVILLE, Tenn. - A federal grand jury in Greeneville returned a 15-count indictment on February 8, 2022, against Johntavis Rogers, 24, of Fort Myers, Florida, for wire fraud, bank fraud, money laundering, and aggravated identity theft. Rogers appeared in court on March 3, 2022, before U.S. Magistrate Judge Cynthia Richardson Wyrick and entered a plea of not guilty to the charges in the indictment. Rogers had previously been arrested in Fort Myers on February 18, 2022, and was released pending trial, which now has been set for August 16, 2022, in United States District Court, in Greeneville, Tennessee.
The indictment alleges that Rogers used interstate wire communications to defraud financial institutions. According to the indictment, Rogers contacted unsuspecting persons in the Eastern District of Tennessee through various social media platforms, such as Facebook, Messenger, and Instagram. Rogers would convince unsuspecting victims that he had discovered a way to legitimately deposit funds into their accounts with financial institutions and share the proceeds. When customers provided their account login information, the indictment alleges that Rogers would use online banking applications to deposit fraudulent checks into their accounts and then cause the transfer of proceeds from those checks to himself. The indictment alleges that the scheme affected six financial institutions in this area between March 2021 and August 2021.
If convicted of bank fraud, Rogers faces a term of 30 years in prison, a fine of $1 million, and up to five years on supervised release.
The investigation was led by the Federal Bureau of Investigation, Cyber Crime Task Force, the Criminal Investigative Division of the Tennessee Highway Patrol, and the White Pine Police Department.
Assistant U.S. Attorney Mac Heavener represents the United States.
Members of the public are reminded that the charges in the criminal complaint are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Chicago Man Charged with Federal Firearms OffensesRead the Press Release
KNOXVILLE, Tenn. — Quintin Lewis, 31, of Chicago, IL, was arrested today, in Knoxville, Tennessee for committing various federal offenses, including being a felon in possession of firearms, possession with intent to distribute narcotics, and possession of firearms in furtherance of drug trafficking. Lewis appeared in the United States District Court for the Eastern District of Tennessee, before the Honorable Jill E. McCook, United States Magistrate Judge, and pleaded not guilty to the charges.
According to the February 27, 2022 criminal complaint on file with the Court, Lewis’s arrest followed investigative activity at two recent local “gun shows” and the subsequent execution of a search warrant at a Knoxville area apartment that resulted in law enforcement officers seizing a total of 20 firearms, including a fully automatic Glock pistol, two AR style rifles, as well as numerous high-capacity magazines, over $32,000 in U.S. Currency, approximately 263 grams of heroin, 62 grams of cocaine, a half a pound of ice methamphetamine, and one pound of marijuana, as depicted in the photograph below which is included in the above-referenced criminal complaint.
The U.S. Attorney’s Office values the effective collaboration between the Knoxville Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Drug Enforcement Administration (DEA) in conducting this investigation.
Assistant United States Attorneys Alan S. Kirk and Anne Marie Svolto represent the United States.
Members of the public are reminded that these are only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
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Knoxville Woman Sentenced to 57 Months in Prison for Defrauding COVID-19 Economic Relief ProgramsRead the Press Release
KNOXVILLE, Tenn. – On February 24, 2022, Porsha Tims Bush, 42, formerly of Knoxville, Tennessee, was sentenced to 57 months in prison by the Honorable Katherine A. Crytzer, in the United States District Court for the Eastern District of Tennessee at Knoxville.
Bush pleaded guilty to engaging in more than $540,000 in fraud related to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, in violation of Title 18 U.S.C. § 1343. Judge Crytzer ordered her to pay restitution in the amount of $471,621, a fine of $25,000, and to complete a term of supervised release of three 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 are suffering from the 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. PPP loans consisted of more than $640 billion in forgivable loans to small businesses for payroll, mortgage interest, rent, and utilities. The EIDL program provided low-interest loans to business owners to pay for items like accounts payable and other bills that could not be paid as a result of COVID-19.
As set forth in the written plea agreement filed with the court, from March 30, 2020, to around the end of June 2020, Bush fraudulently applied for 10 loans totaling $547,286 through the PPP and EDIL programs. Bush submitted fraudulent applications under the names of six businesses that did not qualify for the COVID-19 relief funds that Bush sought. Bush submitted nine fraudulent applications to financial institutions seeking PPP funds and one fraudulent application to the Small Business Administration seeking EIDL funds. As part of her fraud scheme, Bush submitted false supporting records, including Internal Revenue Service documents, and made false statements about the number of individuals the companies employed, the revenue generated, and the wages paid. Bush also made false statements about the business entities and the intended use of the loan proceeds.
Bush then used the fraudulently obtained loan proceeds for unauthorized purposes, including to purchase clothes and electronics; to pay off personal debt; to pay for personal travel; and to fund her daily lifestyle.
For example, according to the plea agreement, on March 30, 2020, Bush submitted an online application to the Small Business Administration in the name of Enlightenment Family Care, Inc., seeking $150,000 in EIDL funds. On the application and in the supporting documents Bush submitted to the SBA—which were all false—Bush claimed that Enlightenment Family Care employed four individuals, generated $335,651 in gross revenue, incurred $34,500 in cost of goods sold, and paid wages of $45,651 in the twelve months preceding the COVID-19 pandemic. Bush fabricated a Profit and Loss Statement to substantiate her false claims.
According to court documents, after entering her guilty plea in August 2021, and while she was subject to presentence release conditions, Bush submitted false Internal Revenue Service forms requesting COVID-19 relief funds for three companies, none of which was entitled to the requested funds. Bush admitted to that conduct before sentencing in this case in a joint stipulation that was filed with the court.
This case is the result of an investigation conducted by the FBI.
Assistant United States Attorney William A. Roach, Jr., who also serves as the Office’s Coronavirus Fraud Coordinator, prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Knoxville Man Sentenced to 87 Months in Prison for Attempting to Hire A "Hitman"Read the Press Release
KNOXVILLE, Tenn. – On February 24, 2022, Nelson Paul Replogle, 60, of Knoxville, was sentenced to 87 months in prison, followed by a three-year period of supervised release, by the Honorable Leon Jordan, Senior United States District Judge of the U.S. District Court for the Eastern District of Tennessee.
As part of a written plea agreement, Replogle pleaded guilty to one count of Murder-For-Hire in violation of Title 18, United States Code, Section 1958. In the filed plea agreement, Replogle admitted to using the Internet in April 2021 to contact a dark web entity that purported to arrange murders-for-hire. He provided the would-be killer with his wife’s name and address, a description of her vehicle, and a specific date, time, and place where she could be found and murdered. In addition, Replogle asked that the killing appear as “road rage or [a] carjacking gone wrong.” In exchange, Replogle used the Internet to transmit a payment of 0.2924549 Bitcoin, which on the day of payment had the approximate value of $17,853.49.
The Federal Bureau of Investigation (FBI) learned of Replogle’s efforts to arrange to have the victim killed and arrested Replogle. The intended victim was unharmed.
This prosecution is the result of an investigation by the FBI.
Assistant United States Attorney Frank M. Dale Jr. represented the United States.
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Massachusetts Man Sentenced to 204 Months for Child Exploitation Related OffensesRead the Press Release
GREENEVILLE, Tenn. – On February 22, 2022, Nicholas Nassif Hayek, 23, of Leominster, Massachusetts, was sentenced to 204 months in federal prison, by the Honorable J. Ronnie Greer, in the United States District Court for the Eastern District of Tennessee at Greeneville.
Following a four-day trial, ending on July 30, 2021, Hayek was convicted of knowingly or attempting to knowingly entice a minor to engage in sexual activity, in violation of 18 U.S.C. § 2422(b), knowingly or attempting to knowingly persuade a minor to engage in sexually explicit conduct for the purpose of producing any visual depiction of such conduct, in violation of 18 U.S.C. § 2251(e), knowingly transferring obscene matter to another individual who had not attained the age of 16 years, in violation of 18 U.S.C. § 1470, knowingly receiving child pornography, in violation of 18 U.S.C. § 2252A(b)(1), and knowingly possessing child pornography involving a child less than 12 years of age, in violation of 18 U.S.C. § 2252A(b)(2). Upon his release from prison, Hayek will be on supervised release for 15 years. Hayek will be required to register with state sex offender registries and comply with special sex offender conditions during his supervised release.
The evidence presented at trial demonstrated that Hayek befriended a 10-year-old child via social media and engaged in numerous chat messages with the child. The messages included countless requests from Hayek asking the child to send him nude photos. Law enforcement also obtained 22 pictures and one video of Hayek exposing himself to the child.
In determining the sentence, Judge Greer found that Hayek had obstructed justice by testifying untruthfully at trial. Judge Greer found that Hayek’s testimony at trial indicated that Hayek was arrogant and unwilling to accept responsibility for his actions. Judge Greer considered several aggravating factors, including the serious emotional scars caused to the child victim by Hayek’s conduct when factoring the sentence length.
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. This investigation was led by FBI Special Agent Bianca Pearson.
Assistant United States Attorneys Meghan L. Gomez and J. Gregory Bowman 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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Knoxville Man Sentenced to 300 Months in Prison for Producing Child PornographyRead the Press Release
KNOXVILLE-Tenn.– On February 10, 2022, Eugene Charles McGrath, 55, of Knoxville, was sentenced to a term of imprisonment of 300 months for producing child pornography by the Honorable Thomas A. Varlan, in the United States District Court for the Eastern District of Tennessee at Knoxville.
As part of the plea agreement filed with the court, McGrath pled guilty to an indictment charging him with one count of using a minor to produce depictions of sexually explicit conduct in violation of 18 U.S.C. § 2251(a) and (e). Upon his release from prison McGrath will be on supervised release for life. McGrath will also be required to register with state sex offender registries and comply with special sex offender conditions during his supervised release.
According to documents filed in Court, from 2006 through 2020, defendant produced child pornography of at least two minors under 10 years of age. One of the videos that McGrath produced has been distributed internationally. In addition to the child pornography images he produced, McGrath was also in possession of 103 images and 11 videos of other child pornography.
The case was investigated by the U.S. Department of Homeland Security, Homeland Security Investigations, and the Knoxville Police Department Internet Crimes Against Children Unit.
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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Convicted Knoxville Gang Leader Sentenced to Life in Prison for Drug and Money Laundering CrimesRead the Press Release
KNOXVILLE, Tenn. On February 9, 2022, Ronald Turner, 25, of Knoxville, was sentenced to life in prison, followed by a five-year term of supervised release, by the Honorable Thomas A. Varlan, in the United States District Court for the Eastern District of Tennessee at Knoxville.
The sentencing follows Turner’s federal trial last July in which a jury convicted him and six other gang members of conspiring to distribute various controlled substances, including methamphetamine, heroin, fentanyl, marijuana, oxycodone, alprazolam, and buprenorphine in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(A), (C), (D), and (E). Witnesses testified at trial that Turner, while serving a state prison sentence in the Tennessee Department of Corrections in Middle Tennessee for attempted second-degree murder, used contraband cell phones in the prison to organize multi-pound shipments of methamphetamine to other members of a violent street gang known as the Unknown Ghost Vice Lords in East Tennessee. The jury also convicted Turner and other defendants of conspiracy to commit money laundering in violation of 18 U.S.C. 1956(h). According to court documents, seven other charged members of the conspiracy previously pleaded guilty.
In determining the sentence, Judge Varlan considered several aggravating factors, including Turner’s role as a leader and organizer of the crimes, his distribution of drugs within the Tennessee state prison, and his direction that other gang members recruit minors to help commit the crimes. Judge Varlan further ruled that the sentence be served consecutively to Turner’s undischarged term of imprisonment in his state case. The remaining defendants who were convicted in July will be sentenced in the coming months.
“Turner was part of a gang that trafficked in lethal drugs, resulting in devastation and death within our community. This sentence sends a powerful message that incarcerated individuals who continue to engage in drug trafficking and who use minors to flood the community with drugs will face justice,” said United States Attorney Francis M. Hamilton III. “This case is an example 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.”
“Illegal drug trafficking continues to have a devastating and horrific impact on communities throughout our nation. This life sentence sends a very strong message to those who engage in these unlawful activities. The FBI and our law enforcement partners remain dedicated to identifying, investigating, and apprehending those who terrorize our communities with their reckless and illegal behavior,” said FBI Special Agent in Charge Joseph Carrico.
“Contraband cellphones are a significant security threat that makes criminal conspiracies possible between people inside our correctional environment and those on the outside,” said TDOC Interim Commissioner Lisa Helton. “Illegal cellphones have been used to orchestrate drug operations and other criminal activities that cause devastating consequences for public safety. The Tennessee Department of Correction is committed to working with our law enforcement partners to put an end to this type of activity that threatens our facilities and our communities.”
"Without question, the conviction and sentencing of this defendant will have a profound effect on public safety and quality of life, most significantly in the inner-city where Turner committed numerous acts of violence as an influential gang member. I am extremely proud of the work that KPD investigators Brandon Stryker and Brandon Glover did over an extensive period of time to dismantle a violent inner-city gang, of which Turner was a member. In their capacity as KPD investigators assigned as task force officers to the FBI, they worked collaboratively with the FBI, the U.S. Attorney's office, and their colleagues in KPD's Organized Crime Unit to end this defendant's contributions to creating fear in the lives of citizens who seek only to raise their families in a safe community," said Captain Tony Willis, KDP Organized Crimes Unit. "We are likewise grateful for the support and collaboration of the FBI and the U.S. Attorney's Office in prosecuting this violent inner-city gang."
This conviction and sentence resulted from an investigation conducted by the Knoxville Police Department, Federal Bureau of Investigation, United States Postal Inspection Service, Cleveland Police Department, Chattanooga Police Department, Hamilton County Sheriff’s Office, the Tennessee Department of Corrections, and the Tennessee Highway Patrol. The Tennessee Bureau of Investigation, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives also assisted in this investigation by conducting drug and firearms analysis on seized evidence in the case.
Assistant United States Attorneys David P. Lewen, Jr. and Brent N. Jones represented the United States.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (“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 against criminal networks.
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Atlanta Man Pleads Guilty to CyberstalkingRead the Press Release
CHATTANOOGA, Tenn. – On February 9, 2022, Zachary Hood, 36, of Atlanta, Georgia, pleaded guilty to one count of cyberstalking. Sentencing has been set for June 16, 2022, before United States District Judge Charles E. Atchley, Jr.
A federal cyberstalking charge carries a maximum of five years in prison; $250,000 in fines; and supervised release for three years.
As part of a plea agreement filed with the court on December 27, 2021, Hood waived indictment by a Federal Grand Jury and agreed to plead guilty to the aforementioned charge. Hood created a fake Facebook account and assumed the identity of a female victim whose name is being withheld for privacy reasons. Hood admitted that, using the Facebook account, he sent intimate photographs of the victim to the victim’s friends and associates. For example, while claiming to be the victim, Hood sent photos featuring the victim’s breasts and buttocks to a friend of the victim’s husband, asking if the friend liked those photos. Hood also contacted the victim’s husband directly, sending the husband nude photographs of the victim and making lewd and sexually suggestive comments about the victim’s appearance. Hood also contacted eight other women, sending each woman intimate photographs of herself, sometimes accompanied by his own commentary.
This prosecution is the result of a joint effort between the United States Attorney’s Office and Federal Bureau of Investigation offices in the Southern District of New York and the Eastern District of Tennessee.
Assistant United States Attorney Kyle J. Wilson, the District’s Computer Hacking and Intellectual Property Crimes Coordinator, represented the United States in court.
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