Eastern District of Tennessee
Press releases recorded for this federal judicial district.
Knoxville Man Convicted of Federal Firearms ViolationRead the Press Release
KNOXVILLE, Tenn. – On February 4, 2022, Kelvon Foster, 22, of Knoxville, pleaded guilty to a one-count Information charging Foster with 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.” Sentencing has been set for June 30, 2022, before United States District Judge Katherine A. Crytzer.
Foster faces a term of up to 10 years imprisonment, $250,000 in fines and up to three years on supervised release.
As part of the plea agreement filed with the Court on December 16, 2021, Foster waived an indictment by a Federal Grand Jury and agreed to plead guilty to the aforementioned charges. Foster admitted to purchasing firearms from a Federal Firearm’s Licensee in Knoxville, Tennessee, 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.
United States Attorney Francis M. Hamilton III of the Eastern District of Tennessee, Resident Agent in Charge Keith Jordan of the ATF’s Knoxville Field Office, and Director David Rausch of the Tennessee Bureau of Investigation made the announcement.
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.
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Knoxville Woman Sentenced to 44 Months in Prison for Embezzling Approximately $725,000, Filing False Tax Returns, and Bankruptcy FraudRead the Press Release
KNOXVILLE, Tenn. – On February 3, 2022, Michelle Clabough, 45, of Knoxville, was sentenced to a term of imprisonment of 44 months by the Honorable R. Leon Jordan, in the United States District Court for the Eastern District of Tennessee at Knoxville.
As part of the plea agreement filed with the Court, Clabough pleaded guilty to two counts of forging private entity securities, in violations of 18 U.S.C. § 513(a), one count of filing a false statement, in violation of 26 U.S.C. § 7206(1), and one count of filing a false bankruptcy record, in violation of 18 U.S.C. § 1519. She was sentenced to 44 months imprisonment, followed by three years of supervised release. Additionally, she was ordered to pay restitution in full in the amount of $725,770 to her former employer and $134,421 to the Internal Revenue Service.
According to documents filed in Court, during a seven-year period while Clabough was employed as an office manager, she forged more than 250 checks and embezzled $725,770 from her employer. During this same time period, Clabough submitted fraudulent tax returns that did not include her stolen income, which resulted in a tax loss of $134,421. Additionally, Clabough submitted a false record in a Chapter 13 bankruptcy proceeding in which she failed to disclose the income she obtained through her embezzlement of funds.
The criminal indictment was a result of an investigation by the Internal Revenue Service - Criminal Investigation.
Assistant United States Attorney Jennifer Kolman represented the United States.
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Former Tennessee Law Enforcement Officer Convicted of Federal Civil Rights OffensesRead the Press Release
CHATTANOOGA, Tenn. On January 28, 2022, Anthony “Tony” Bean, 61, of Chattanooga, was found guilty of federal civil rights offenses by the Honorable Travis R. McDonough, in the United States District Court for the Eastern District of Tennessee at Chattanooga.
According to court documents, Tony Bean was convicted following a bench trial for using excessive force against two arrestees while he was a law enforcement officer. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, United States Attorney for the Eastern District of Tennessee Francis M. Hamilton III, and FBI Knoxville Special Agent in Charge Joseph E. Carrico made the announcement of Tony Bean’s conviction.
While acting as the Chief of the Tracy City Police Department in Tracy City, Tennessee, Tony Bean used excessive force against arrestee C.G. on two occasions during C.G.’s arrest in 2014. Furthermore, Tony Bean used excessive force against a second arrestee during F.M.’s arrest when Tony Bean was the Chief Deputy of the Grundy County Sheriff’s Office, in Grundy County, Tennessee. Tony Bean’s co-defendant, T.J. Bean, faced a single charge at trial and was acquitted of using excessive force against arrestee F.M. during the same arrest in 2017. Evidence presented at trial in June 2021, over the course of three days, showed that Tony Bean was guilty of federal civil rights offenses.
“Every person in our nation has the right to be free from unlawful abuse by police officers, including the use of excessive force during an arrest,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “This verdict makes clear that law enforcement officials who use unlawful force are not above the law. We will not stand idly by in the face of criminal misconduct by law enforcement officials in any part of the country.”
“Tony Bean held a position of public trust, and he willfully violated that trust. This violation diminishes the tremendous work performed by law enforcement every day. Our office is committed to ensuring the protection of every person’s civil rights,” said United States Attorney Francis M. Hamilton III.
“Civil Rights violations are always of great concern, particularly when an officer betrays the oath to protect and serve. The public has an absolute right to trust that law enforcement will protect those they serve. When that trust is violated, the law enforcement community is tarnished, and the community’s confidence is broken,” said FBI Special Agent in Charge Joseph E. Carrico.
Bean’s sentencing has been set for June 24, 2022. He faces a maximum penalty of 10 years of imprisonment on each of the three counts of conviction.
This case was investigated by the Knoxville Division of the FBI.
Assistant United States Attorney James Brooks of the U.S. Attorney’s Office for the Eastern District of Tennessee and Trial Attorneys Kathryn E. Gilbert and Andrew Manns of the Justice Department’s Civil Rights Division represented the United States.
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Knoxville Man Sentenced to 240 Months for Transportation and Possession of Child PornographyRead the Press Release
KNOXVILLE, Tenn.– On January 27, 2022, Timothy Chad Canady (Canady), 43, currently of Knoxville, was sentenced by the Honorable Katherine A. Crytzer, in the United States District Court for the Eastern District of Tennessee at Knoxville to serve 240 months in federal prison.
As part of the plea agreement filed with the court, Canady agreed to plead guilty to an indictment charging him with one count of transportation of child pornography in violation of 18 U.S.C. § 2252A (1) and 2252A(b)(1) and one count of possession of child pornography in violation of 18 U.S.C. § 2252A(a)(5)(B) and 2252A(b)(2). As part of the federal sentence, following his release from federal prison, Canady will be placed on supervised release for life. Canady will be required to register with state sex offender registry where he lives, works, or attends school and will be required to comply with special sex offender conditions during his supervised release.
According to documents filed in court and witness testimony, from November 2017 through February 2020, defendant transported child pornography in interstate commerce and possessed child pornography. Canady used social media websites to communicate with others to trade links of child pornography. Canady used multiple phones, 15 email addresses and 14 usernames to transport and collect the child pornography. In Canady’s possession were found 640 images and 153 videos of child pornography, including sadistic depictions portraying infants and toddlers engaged in sexually explicit conduct. Canady had been paroled in June 2015 after serving approximately 12 years on a 40-year sentence for facilitation to commit felony murder and two counts of attempted aggravated robbery.
The criminal indictment was the result of an investigation by the Department of Homeland Security, Homeland Security Investigations, and Knoxville Police Department’s Internet Crimes Against Children unit.
Assistant United States Attorney Jennifer Kolman represented the United States in court.
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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Former Tennessee Clinic Owner Sentenced for Opioid DistributionRead the Press Release
A former nurse practitioner and clinic owner was sentenced in the Eastern District of Tennessee today to 14 years in prison for illegally distributing prescription opioid pills to his patients.
Mark Daniel Allen, 64, of Venice, Florida, was found guilty of six counts of unlawfully distributing controlled substances not for a legitimate medical purpose outside the scope of professional practice and one count of maintaining a drug-involved premises after a three-day trial on Sept. 1, 2021.
According to evidence presented at trial, Allen unlawfully prescribed roughly 15,000 opioid pills to three women with whom he had sexual relationships, and to a male patient who later passed away.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee; Special Agent in Charge Joseph Carrico of the FBI’s Knoxville Field Office; Special Agent in Charge Tamala Miles of the Department of Health and Human Services, Office of Inspector General (HHS-OIG); and Director David Rausch of the Tennessee Bureau of Investigation (TBI) made the announcement.
The FBI, HHS-OIG, TBI, Manchester Police Department and Coffee County Sheriff's Office investigated the case.
Trial Attorney Emily Petro of the Criminal Division’s Fraud Section and Assistant U.S. Attorney James Brooks of the Eastern District of Tennessee prosecuted the case.
Former Tennessee Clinic Owner Sentenced to 168 Months for Opioid DistributionRead the Press Release
CHATTANOOGA, Tenn. On January 21, 2022, Mark Daniel Allen, 64, of Venice, Florida, was sentenced to 168 months in prison and $700 in special assessments, followed by three years of supervised released, by the Honorable Travis R. McDonough, in the United States District Court for the Eastern District of Tennessee at Chattanooga.
According to court documents, Allen was found guilty of six counts of unlawfully distributing controlled substances and one count of maintaining a drug-involved premises after a three-day trial, which began on September 1, 2021. Evidence presented at trial showed that Allen unlawfully prescribed approximately 15,000 opioid pills to three women with whom he had sexual relationships, and to a male patient who later passed away.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee; Special Agent in Charge Joseph Carrico of the Federal Bureau of Investigation (FBI) Knoxville Field Office; Special Agent in Charge Tamala Miles of the Department of Health and Human Services, Office of Inspector General (HHS-OIG); and Director David Rausch of the Tennessee Bureau of Investigation (TBI) made the announcement.
The FBI, HHS-OIG, TBI, Manchester Police Department, and Coffee County Sheriff's Office investigated the case.
Assistant U.S. Attorney James Brooks of the Eastern District of Tennessee and Trial Attorney Emily Petro of the Criminal Division’s Fraud Section and prosecuted the case.
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U.S. Attorney's Office Collects $4,281,327.54 in Civil and Criminal Actions in Fiscal Year 2021Read the Press Release
KNOXVILLE, Tenn. – United States Attorney Francis M. Hamilton III announced today that the Eastern District of Tennessee collected $4,281,327.54 in criminal and civil actions in Fiscal Year 2021. Of this amount, $3,668,516.41 was collected in criminal actions and $612,811.13 was collected in civil actions.
Separately, in fiscal year 2021, the District of Eastern District of Tennessee also recovered $555,110.14 as the result of filling an execution in an ongoing criminal matter.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s office in Eastern District of Tennessee, working with partner agencies and divisions, collected $2,663,255 in asset forfeiture actions in FY 2021. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
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Convicted Knoxville Gang Leader Sentenced to Life Plus Ten Years for Drugs, Firearm, and Money Laundering CrimesRead the Press Release
KNOXVILLE, Tenn. On January 12, 2022, Alim J. Turner, 23, of Knoxville, was sentenced to life plus ten years in prison, 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. Witnesses testified at trial that Turner was the Knoxville leader of a violent street gang known as the Unknown Ghost Vice Lords. The jury also convicted Turner and other defendants of conspiracy to commit money laundering. In addition, Turner and other defendants were convicted of counts charging the possession of firearms in furtherance of drug trafficking, the illegal distribution of drugs, and unlawful possession of firearms in East Tennessee. According to court documents, seven other charged members of the conspiracy previously pleaded guilty.
In determining the sentence, Judge Varlan took into account several aggravating factors, including Turner’s role as a leader and organizer of the crimes, his use of minors to commit his crimes, as well as credible threats of violence Turner made against other people in connection with his crimes. The remaining seven defendants who were convicted in July will be sentenced in the coming months.
"Gang violence, coupled with armed trafficking of lethal drugs, has resulted in devastation and death within our community. This sentence sends a powerful message that armed gang leaders who recruit and use minors to flood the community with drugs and who employ credible threats of violence in their crimes 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.
"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, KPD 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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Knoxville Man Sentenced to Prison for Defrauding COVID-19 Economic Relief ProgramsRead the Press Release
KNOXVILLE, Tenn. – On January 13, 2022, James Waylon Howell, 39, of Knoxville was sentenced to 18 months in prison by the Honorable R. Leon Jordan, in the United States District Court for the Eastern District of Tennessee at Knoxville.
Howell pleaded guilty to engaging in more than $150,000 in fraud related to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, and to committing money laundering.
“This prosecution highlights the Department of Justice’s commitment to aggressively prosecute those who have defrauded these important programs enacted to provide economic relief to those who have suffered financially as a result of the COVID-19 pandemic,” said United States Attorney Francis M. Hamilton III. “Fortunately, the quick and capable work of our federal partners permitted the recovery of a substantial amount of stolen funds.”
“Our office will continue to investigate those who fraudulently take advantage of Coronavirus aid funding that is available to help others during the pandemic, and bring them to justice,” said FBI Special Agent in Charge Joe Carrico.
“While businesses were suffering and trying their best to make it through the pandemic, others chose greed,” Assistant Special Agent in Charge of IRS-Criminal Investigation Brian Thomas said. “IRS-CI will continue to use its financial expertise to track and recommend prosecution of criminals taking advantage of a crisis.”
The CARES Act is a federal law enacted in March 2020 to provide emergency financial assistance to the millions of Americans who are suffering 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 stated in defendant’s filed plea agreement, from April 2020 to June 2020, Howell fraudulently applied for four loans totaling $154,700 through the PPP and EDIL programs. Howell submitted fraudulent applications under the names of two businesses that did not qualify for the COVID-19 relief funds that Howell sought. Howell submitted two fraudulent applications to financial institutions seeking PPP funds and two fraudulent applications to the Small Business Administration seeking EIDL funds. As part of his fraud scheme, Howell 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 waged paid. Howell also made false statements about the business entities and the intended use of the loan proceeds.
For example, according to the plea agreement, on April 1, 2020, Howell submitted an online application to the Small Business Administration in the name of Advanced Strategy Holdings, LLC, seeking $83,800 in EIDL funds. On the application and in the supporting documents, Howell submitted to the SBA in support of the loan, Howell claimed that Advanced Strategy Holdings employed four individuals, generated $700,000 in gross revenue, incurred $0 in cost of goods sold, and paid wages of $440,000 in the twelve months preceding the COVID-19 pandemic. These claims were all false.
This case is the result of an investigation conducted by the FBI and the Internal Revenue Service - Criminal Investigation.
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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Interim United States Attorney Appointed for the Eastern District of TennesseeRead the Press Release
KNOXVILLE, Tenn. – Attorney General Merrick Garland has appointed Francis M. (Trey) Hamilton III as interim United States Attorney for the Eastern District of Tennessee effective December 26, 2021, pursuant to 28 U.S.C. § 546. Prior to that date, Chief United States District Judge Travis R. McDonough administered the oath of office for Mr. Hamilton’s appointment at the Joel W. Solomon Federal Courthouse in Chattanooga, Tennessee.
Before being sworn in as United States Attorney, Mr. Hamilton had been serving as the office’s Acting U.S. Attorney since March 1, 2021. A native of Nashville, Tennessee, Mr. Hamilton joined the office 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 also oversaw 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, 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, 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.
Mr. Hamilton’s interim appointment is for 120 days or until a Presidential appointment is made, whichever occurs first.
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Department of Justice Awards More Than $125 Million in Grants Under the STOP School Violence ActRead the Press Release
KNOXVILLE, Tenn. – The Department of Justice today announced nearly $126 million in funding to advance school safety under the STOP School Violence Act. The grants, awarded by the Office of Justice Programs’ Bureau of Justice Assistance (BJA) and the department’s Office of Community Oriented Policing Services (COPS Office), will help institute safety measures in and around primary and secondary schools, support school violence prevention efforts, provide training to school personnel and students, and implement evidence-based threat assessments.
“The Justice Department has no greater responsibility than protecting Americans from harm,” said Attorney General Merrick B. Garland. “Schools must be safe places to learn, and today’s investment of more than $125 million under the STOP School Violence Act will help ensure that they are.”
“I am proud to announce the award of $266,314 from the 2021 COPS School Violence Prevention Program funding for Hamilton County, Tennessee,” said Acting United States Attorney Francis M. Hamilton III. “Hamilton County Schools will utilize this award to proactively address school violence by providing educators and students the resources and support they need to learn, grow, and thrive.”
The Students, Teachers and Officers Preventing School Violence Act of 2018 (the “STOP School Violence Act”) gives the Justice Department the authority to provide awards directly to states, units of local government, Indian tribes, and public agencies (such as school districts and law enforcement agencies) to improve security at schools and on school grounds through evidence-based school safety programs. It also provides grants to ensure a positive school climate by helping students and teachers recognize, respond quickly to, and help prevent acts of violence.
The 78 BJA annual awards, totaling almost $74 million, are intended to support training and education for school personnel and students on preventing violence against others and themselves, including anti-bullying training and specialized training for school officials to respond to mental health crises. Funds also help develop and implement multidisciplinary threat assessment or intervention teams and design technology solutions such as anonymous reporting systems, hotlines and websites.
The COPS School Violence Prevention Program (SVPP) provides up to 75% of the funding for school safety measures in and around primary and secondary schools. The 153 SVPP awards, totaling almost $52 million, are statutorily obligated to be used for coordination with law enforcement; training for local law enforcement officers to prevent student violence; locks, lighting and other deterrent measures; technology for expedited notification of local law enforcement during an emergency; and other measures that provide a significant improvement in security.
The full list of SVPP awards can be found here: https://cops.usdoj.gov/svpp-award.
A list of BJA awards, as they are made, can be found on the OJP Grant Awards page.
The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. The only Department of Justice agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to agency for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served. The COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of more than 135,000 officers.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
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Knoxville Woman Sentenced to Thirty Years in Prison for Production of Child PornographyRead the Press Release
KNOXVILLE, Tenn. – On December 9, 2021, Breanna Cierra Sluder, 27, of Knoxville, Tenn., was sentenced to a term of imprisonment of 30 years by the Honorable Katherine A. Crytzer, in the United States District Court for the Eastern District of Tennessee at Knoxville.
Following her imprisonment, Sluder will be supervised by the United States Probation Office for the rest of her life and will be required to comply with special conditions of release for sex offenders. Sluder will also be required to register with the sex offender registry in any state in which she resides, works, or attends school.
Sluder pleaded guilty to one count of producing child pornography. According to documents filed in court, in January 2020, a federal search warrant was executed at Sluder’s home after the National Center for Missing and Exploited Children provided information to the Knoxville Police Department’s Internet Crimes Against Children Unit (KPD-ICAC) concerning images of child pornography being produced in Knoxville. According to court documents, image and video files located during the investigation depicted the sexual victimization of an infant and a toddler by Sluder.
This case was investigated by KPD-ICAC and the Department of Homeland Security, Homeland Security Investigations. Assistant United States Attorney Jennifer Kolman prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
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Justice Department Awards More Than $17.5 Million to Support Project Safe NeighborhoodsRead the Press Release
KNOXVILLE, Tenn. - The Department of Justice announced today that it has awarded more than $17.5 million in grants to support the Project Safe Neighborhoods (PSN) Program. Funding will support efforts across the country to address violent crime, including the gun violence that is often at its core. The Bureau of Justice Assistance (BJA), part of the department’s Office of Justice Programs (OJP), will administer the 88 grant awards, which are being made to designated fiscal agents to support local PSN projects that work in partnership with U.S. Attorneys’ Offices.
The fiscal year 2021’s funding request resulted in the allocation of $167,124 to be awarded to local law enforcement entities in the Eastern District of Tennessee. These grants will be awarded in the summer of 2022 following the Tennessee Department of Finance and Administration’s independent solicitation and review of applications from local law enforcement agencies.
“This latest Project Safe Neighborhoods grant is critical to addressing the violent crime threatening cities and towns all across our country,” said Deputy Attorney General Lisa O. Monaco. “Ensuring the safety of all Americans is the highest priority for the Department of Justice, but when it comes to violent crime, there is not a one-size-fits-all solution. We have to work closely with local public safety agencies as well as community organizations to craft individual strategies unique to each community’s needs. Programs like Project Safe Neighborhoods and the funding it provides allow us to do just that.”
“Investing in our communities, supporting victims and building a justice system that both keeps people safe and earns their trust – these are mutually reinforcing goals that stand at the heart of Project Safe Neighborhoods,” said Principal Deputy Assistant Attorney General Amy L. Solomon for OJP. “The Office of Justice Programs is pleased to join with our U.S. Attorneys’ Offices, and with jurisdictions across the country, as we work together to meet the challenges of crime and violence and achieve our shared aspirations of public safety and community trust.”
“Combating violent crime remains a top priority. Our office’s goal is to raise public awareness of Project Safe Neighborhoods by engaging with local community partners and law enforcement through outreach efforts. Through these community-based engagements, our office will work towards building trust among these stakeholders and provide critical resources to help reduce violent crime and improve public safety,” said Acting United States Attorney Francis M. Hamilton III.
In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime issued by Deputy Attorney General Monaco, is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
This fall, U.S. Attorney’s Offices across the country have enhanced their violent crime reduction efforts to ensure alignment with the department’s comprehensive violent crime reduction strategy. U.S. Attorneys’ Offices have engaged in outreach to law enforcement and other agencies and organizations serving communities to identify the most significant drivers of violence in their districts. Working together with a broad coalition of stakeholders, the U.S. Attorneys’ Offices are addressing the most pressing violent crime issues in their district to make our neighborhoods safer for all.
PSN programs are led by U.S. Attorney's Offices in collaboration with local public safety agencies, community stakeholders and other agencies and organizations that work to reduce violent crime.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
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Federal Jury Convicts Pharmacy Owner for Role in $174 Million Telemedicine Pharmacy Fraud SchemeRead the Press Release
On Dec. 2, a federal jury in Greeneville, Tennessee, convicted Peter Bolos, 44, of Tampa, Florida, of 22 counts of mail fraud, conspiracy to commit health care fraud and introduction of a misbranded drug into interstate commerce, following a month-long trial.
According to court documents and evidence presented at trial, Bolos and his co-conspirators, Andrew Assad, Michael Palso, Maikel Bolos, Larry Smith, Scott Roix, HealthRight LLC, Mihir Taneja, Arun Kapoor, and Sterling Knight Pharmaceuticals, as well as various other companies owned by them, 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 claims worth more than $174 million 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.
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 agreed with 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, evidence showed Roix used HealthRight’s telemarketing platform as a telemedicine service, 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 paid Roix more than $30 million to buy at least 60,000 invalid prescriptions generated by HealthRight. Evidence showed Bolos selected specific medications for the prescriptions that he could submit for highly profitable reimbursements. In addition, Bolos used illegal means to hide his activity from the PBMs so that he could remain undetected. Evidence showed that Bolos was responsible for at least $89 million out of the total $174 million in fraudulently paid billings.
“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 of the Justice Department’s Civil Division. “The Department will continue to investigate and prosecute individuals who use telemedicine to advance fraudulent schemes that violate the Food, Drug, and Cosmetic Act.”
“The United States Attorney’s Office for the Eastern District of Tennessee applauds the unwavering efforts of the multiple agencies involved in this collaborative investigation to bring this extensive healthcare fraud and misbranding scheme to justice,” said Acting U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee. “The scope and nature of this fraud and misbranding scheme shock the conscience. Patients were given medications that they neither requested nor wanted, and the trial proof demonstrated that the prescriptions were specifically chosen by Bolos to maximize the fraudulent scheme’s profits, rather than for the patients’ healthcare needs. The guilty verdict against Bolos and the guilty pleas obtained from his co-defendants should send a strong message that the Department of Justice will aggressively prosecute fraud against health insurance providers.”
“Healthcare fraud is an egregious crime problem that impacts every American,” said Special Agent in Charge Joseph E. Carrico of the FBI’s Knoxville Field Office. “The guilty verdict was a result of a multi-agency investigation into a complex health care fraud scheme that required substantial investigative resources. Along with its law enforcement partners, the FBI remains committed to investigate these crimes and prosecute all those that are intent in defrauding the American public."
“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 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 used their pharmacies to fraudulently bill insurance companies hundreds of millions of dollars, and that type of health care fraud impacts everyone,” said Special Agent in Charge John Condon of Homeland Security Investigations (HSI) Tampa. “HSI will continue to work with our law enforcement partners at the federal, state and local level to investigate all fraud and bring those responsible to justice.”
“Bolos and his co-conspirators sought to increase their profits by executing a comprehensive health care fraud scheme involving innocent patients,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services, Office of Inspector General. “This conviction should serve as a warning to individuals who wish to deceive the government and steal from taxpayers. Alongside our law enforcement partners, we will continue to pursue medical professionals who engage in fraudulent activity.”
“The verdict in this case sends a clear message that these types of schemes will not be tolerated,” said Special Agent in Charge Matthew Modafferi of the U.S. Postal Service Office of Inspector General in the Northeast Area Field Office. “The Special Agents of the U.S. Postal Service Office of Inspector General will continue to work closely with the U.S. Attorney’s Office and our law enforcement partners to bring to justice those who commit these kinds of offenses.”
Roix, Assad, Palso, Smith, Maikel Bolos and various associated business entities previously 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 set sentencing for Bolos for May 19, 2022, in the United States District Court for the Eastern District of Tennessee at Greeneville. Sentencings for the other defendants will be set for dates in 2022.
The trial and plea agreements resulted from a multi-year investigation conducted by the U.S. Department of Health & Human Services Office of Inspector General (Nashville); Food and Drug Administration Office of Criminal Investigations (Nashville); U.S. Postal Service, Office of Inspector General (Buffalo); Federal Bureau of Investigation (Knoxville and Johnson City, Tennessee); Office of Personnel Management Office of Inspector General (Atlanta); and the Department of Homeland Security, Homeland Security Investigations (Tampa). The U.S. Marshals Service also assisted in the investigation and the forfeiture of assets.
Assistant U.S. Attorneys TJ Harker and Mac Heavener for the Eastern District of Tennessee and Trial Attorney David Gunn of the Department of Justice Civil Division’s Consumer Protection Branch in Washington, and a former Assistant U.S. Attorney in Knoxville, prosecuted and tried the case. They were assisted by Barbra Pemberton, Bryan Brandenburg and April Denard from the U.S. Attorney’s office.
Federal Jury Convicts Pharmacy Owner for Role in $174 Million Telemedicine Pharmacy Fraud SchemeRead the Press Release
WASHINGTON – On Dec. 2, a federal jury in Greeneville, Tennessee, convicted Peter Bolos, 44, of Tampa, Florida, of 22 counts of mail fraud, conspiracy to commit health care fraud and introduction of a misbranded drug into interstate commerce, following a month-long trial.
According to court documents and evidence presented at trial, Bolos and his co-conspirators, Andrew Assad, Michael Palso, Maikel Bolos, Larry Smith, Scott Roix, HealthRight LLC, Mihir Taneja, Arun Kapoor, and Sterling Knight Pharmaceuticals, as well as various other companies owned by them, 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 claims worth more than $174 million 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.
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 agreed with 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, evidence showed Roix used HealthRight’s telemarketing platform as a telemedicine service, 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 paid Roix more than $30 million to buy at least 60,000 invalid prescriptions generated by HealthRight. Evidence showed Bolos selected specific medications for the prescriptions that he could submit for highly profitable reimbursements. In addition, Bolos used illegal means to hide his activity from the PBMs so that he could remain undetected. Evidence showed that Bolos was responsible for at least $89 million out of the total $174 million in fraudulently paid billings.
“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 of the Justice Department’s Civil Division. “The Department will continue to investigate and prosecute individuals who use telemedicine to advance fraudulent schemes that violate the Food, Drug, and Cosmetic Act.”
“The United States Attorney’s Office for the Eastern District of Tennessee applauds the unwavering efforts of the multiple agencies involved in this collaborative investigation to bring this extensive healthcare fraud and misbranding scheme to justice,” said Acting U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee. “The scope and nature of this fraud and misbranding scheme shock the conscience. Patients were given medications that they neither requested nor wanted, and the trial proof demonstrated that the prescriptions were specifically chosen by Bolos to maximize the fraudulent scheme’s profits, rather than for the patients’ healthcare needs. The guilty verdict against Bolos and the guilty pleas obtained from his co-defendants should send a strong message that the Department of Justice will aggressively prosecute fraud against health insurance providers.”
“Healthcare fraud is an egregious crime problem that impacts every American,” said Special Agent in Charge Joseph E. Carrico of the FBI’s Knoxville Field Office. “The guilty verdict was a result of a multi-agency investigation into a complex health care fraud scheme that required substantial investigative resources. Along with its law enforcement partners, the FBI remains committed to investigate these crimes and prosecute all those that are intent in defrauding the American public."
“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 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 used their pharmacies to fraudulently bill insurance companies hundreds of millions of dollars, and that type of health care fraud impacts everyone,” said Special Agent in Charge John Condon of Homeland Security Investigations (HSI) Tampa. “HSI will continue to work with our law enforcement partners at the federal, state and local level to investigate all fraud and bring those responsible to justice.”
“Bolos and his co-conspirators sought to increase their profits by executing a comprehensive health care fraud scheme involving innocent patients,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services, Office of Inspector General. “This conviction should serve as a warning to individuals who wish to deceive the government and steal from taxpayers. Alongside our law enforcement partners, we will continue to pursue medical professionals who engage in fraudulent activity.”
“The verdict in this case sends a clear message that these types of schemes will not be tolerated,” said Special Agent in Charge Matthew Modafferi of the U.S. Postal Service Office of Inspector General in the Northeast Area Field Office. “The Special Agents of the U.S. Postal Service Office of Inspector General will continue to work closely with the U.S. Attorney’s Office and our law enforcement partners to bring to justice those who commit these kinds of offenses.”
Roix, Assad, Palso, Smith, Maikel Bolos, and various associated business entities previously 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 set sentencing for Bolos for May 19, 2022, in the United States District Court for the Eastern District of Tennessee at Greeneville. Sentencing for the other defendants will be set for dates in 2022.
The trial and plea agreements resulted from a multi-year investigation conducted by the U.S. Department of Health & Human Services Office of Inspector General (Nashville); Food and Drug Administration Office of Criminal Investigations (Nashville); U.S. Postal Service, Office of Inspector General (Buffalo); Federal Bureau of Investigation (Knoxville and Johnson City, Tennessee); Office of Personnel Management Office of Inspector General (Atlanta); and the Department of Homeland Security, Homeland Security Investigations (Tampa). The U.S. Marshals Service also assisted in the investigation and the forfeiture of assets.
Assistant U.S. Attorneys TJ Harker and Mac Heavener of the U.S. Attorney’s Office for the Eastern District of Tennessee and Trial Attorney David Gunn of the Department of Justice Civil Division’s Consumer Protection Branch in Washington, and a former Assistant U.S. Attorney in Knoxville, prosecuted and tried the case. They were assisted by Barbra Pemberton, Bryan Brandenburg, and April Denard from the U.S. Attorney’s office.
Federal Jury Convicts Pharmacy Owner of Conspiracy, Mail Fraud, and Misbranding for Role in Multi-Million Dollar Telemedicine Pharmacy Fraud SchemeRead the Press Release
GREENEVILLE, Tenn. Following a month-long trial, a federal jury convicted Peter Bolos, 44, of Tampa, Florida, of conspiracy to commit health care fraud, 22 counts of mail fraud, and felony misbranding of a medication. Sentencing for Bolos has been set for May 19, 2022 at 10:30 am, before the Honorable J. Ronnie Greer, in the United States District Court for the Eastern District of Tennessee at Greeneville.
According to court documents and evidence presented at trial, Bolos, Andrew Assad, Michael Palso, Maikel Bolos, Larry Smith, Scott Roix, HealthRight LLC, Mihir Taneja, Arun Kapoor, and Sterling Knight Pharmaceuticals, as well as various other companies owned by them, conspired to defraud pharmacy benefit managers (PBMs), such as Express Scripts and CVS Caremark out of millions of dollars. PBMs pay pharmacies for prescription claims on behalf of public insurance programs, such as Medicare and Tricare as well as private insurance companies like Blue Cross Blue Shield of Tennessee.
Court documents and evidence at trial further proved that Bolos, Assad, and Palso – who owned Synergy Pharmacy in Palm Harbor, Florida – purchased prescriptions from Scott Roix for $500 apiece. Bolos and Roix disguised these prescriptions’ purchases with bogus marketing agreements. To obtain these prescriptions, Roix used HealthRight’s telemedicine platform to deceive patients into providing HealthRight with their insurance information. Roix then steered doctors to issue prescriptions through HealthRight’s telemedicine platform by falsely telling the doctors the patients had requested the medications. In fact, the medications were selected by Bolos because they were highly profitable.
During the conspiracy, which lasted from May 26, 2015 through April 1, 2018, Bolos paid Roix more than $30,000,000 to buy not fewer than 60,000 prescriptions. Nearly all these prescriptions were issued through HealthRight’s telemedicine platform. The doctors who issued the prescriptions did not know, never met, and never spoke to the patients.
According to court documents, Roix, Assad, Palso, Smith, Maikel Bolos and various associated business entities previously pleaded guilty to their role in the conspiracy. Taneja, Kapoor, and Sterling Knight pleaded guilty to felony misbranding in a conspiracy with Bolos. Sentencing for all the defendants will be set for dates in 2022.
The trial and plea agreements resulted from a multi-year investigation conducted by the U.S. Department of Health & Human Services Office of Inspector General (Nashville); Food and Drug Administration Office of Criminal Investigations (Nashville); U.S. Postal Service, Office of Inspector General (Buffalo, New York); Federal Bureau of Investigation (Knoxville and Johnson City, Tennessee); Office of Personnel Management Office of Inspector General (Atlanta); and the Department of Homeland Security, Homeland Security Investigations (Tampa). The U.S. Marshals Service also assisted in the investigation and the forfeiture of assets.
Assistant U.S. Attorneys TJ Harker and Mac Heavener of the U.S. Attorney’s Office for the Eastern District of Tennessee and Trial Attorney David Gunn of the Consumer Protection Branch in Washington prosecuted and tried the case.
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Justice Department Announces $139 Million for Law Enforcement Hiring to Advance Community PolicingRead the Press Release
KNOXVILLE, Tenn. – The Department of Justice today announced more than $139 million in grant funding through the department’s Office of Community Oriented Policing Services (COPS Office) COPS Hiring Program (CHP). The awards provide direct funding to 183 law enforcement agencies across the nation, allowing those agencies to hire 1,066 additional full-time law enforcement professionals. In the Eastern District of Tennessee, Lenoir City was awarded funding totaling $375,000.
“We are committed to providing police departments with the resources needed to help ensure community safety and build community trust,” said Attorney General Merrick B. Garland. “The grants we are announcing today will enable law enforcement agencies across the country to hire more than 1,000 additional officers to support vitally important community oriented policing programs.”
“Our office is proud to announce the 2021 Cops Hiring Program Grant award to Lenoir City in the Eastern District of Tennessee. Applications for this award were received from 590 law enforcement agencies in nearly every state. The funding that Lenoir City will receive will support the hiring of career law enforcement officers to address community policing needs,” said Acting United States Attorney Francis M. Hamilton III.
CHP is a competitive award program intended to reduce crime and advance public safety through community policing. CHP provides funds directly to law enforcement agencies to hire new or rehire additional career law enforcement officers, thereby increasing their community policing capacity and crime prevention efforts. Of the 183 agencies awarded grants today, approximately half will use the funding to focus on building legitimacy and trust between law enforcement and communities; 41 agencies will seek to address high rates of gun violence; 21 will focus on other areas of violence; and 19 will focus CHP resources on combating hate and domestic extremism or supporting police-based responses to persons in crisis. The complete list of awards can be found here.
Since its creation in 1994, COPS has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and Tribal law enforcement agencies to fund the hiring and redeployment of more than 135,000 officers. CHP, COPS’ flagship program, continues to be in demand today: In FY21, COPS received 590 applications requesting nearly 3,000 law enforcement positions. For FY22, President Biden has requested $537 million for CHP, an increase of $300 million.
To learn more about CHP, please visit https://cops.usdoj.gov/chp-awards. For additional information about the COPS Office, please visit https://cops.usdoj.gov/.
The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. The only Department of Justice agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served.
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Erwin Man Sentenced for 160 Months for Receipt of Child PornographyRead the Press Release
GREENEVILLE, Tenn. – On November 18, 2021, Justin Claude Richardson, 29, currently of Erwin, TN was sentenced by the Honorable R. Leon Jordan, in the United States District Court for the Eastern District of Tennessee at Greeneville, to serve 160 months in federal prison. Upon release, Richardson will be supervised by U.S. Probation for 20 years and will be required to register with the state sex offender registry and comply with special sex offender conditions during supervised release.
As part of the plea agreement filed with the court, Richardson agreed to plead guilty to receipt of child pornography in violation of 18 U.S.C. 2252A(a)(2)(A) and (b)(1). Additionally, the defendant was ordered to pay restitution to victims making claims, who were identified through the Child Victim Identification Program database operated by the National Center for Missing and Exploited Children (NCMEC).
According to court documents, on May 13, 2019, officers stopped Richardson in Unicoi County, Tennessee, upon suspicion of his involvement in a kidnapping. Richardson was placed under arrest and his cellular telephone was seized. Richardson’s cellular telephone contained approximately 2,364 images of child pornography, including images of bestiality, sadomasochistic acts, and infants. The web browser on the cellular phone reflected hundreds of searches for child pornography, with searches occurring shortly before Richardson’s arrest.
The criminal indictment was the result of an investigation by the Unicoi County Sheriff’s Department and Federal Bureau of Investigation. This investigation was led by FBI Special Agent Bianca Pearson.
Assistant United States Attorney 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 for Fraud and Money LaunderingRead the Press Release
KNOXVILLE, Tenn. – On November 10, 2021, Hugh Leroy Murphy, 81, currently of Knoxville, Tennessee, was sentenced by the Honorable Katherine A. Crytzer, in the United States District Court for the Eastern District of Tennessee at Knoxville.
As part of the written plea agreement, Murphy agreed to plead guilty to one count of mail fraud in violation of 18 U.S.C. § 1341; and one count of money laundering in violation of 18 U.S.C. § 1957. Murphy was sentenced to 46 months in prison, followed by one year of supervised release. In addition, Murphy was ordered to pay $2,215,202.08 in restitution to his victims.
According to court documents, in November 2018, a federal grand jury in the Eastern District of Tennessee returned a twelve-count indictment against Murphy, charging him with eight counts of wire fraud and four counts of money laundering. The indictment resulted from a lengthy investigation by the U.S. Postal Investigation Service and the Internal Revenue Service.
Investigators found that from approximately May, 2002 through September 2016, Murphy defrauded individuals by offering fictitious annuity and purported equity policy investments in commercial real estate. Instead of investing the funds as promised, however, Murphy diverted the funds to his own personal use and benefit. Murphy created the appearance of returns on investment by paying earlier investors with funds received from later investors. In addition, Murphy created the appearance of legitimacy by mailing statements containing fictitious information to his victims. Over the course of the scheme, Murphy received at least $6,294,461.07 from 47 victims, who suffered a net loss of $2,215,202.08.
The criminal indictment was the result of an investigation by the U.S. Postal Inspection Service and the Internal Revenue Service.
Assistant United States Attorney Frank M. Dale, Jr. represented the United States.
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Maryville Man Sentenced to 45 Years in Federal Prison for Child Exploitation CrimesRead the Press Release
KNOXVILLE, Tenn. – The Honorable Thomas A. Varlan, United States District Judge for the Eastern District of Tennessee, sentenced Tywan Montrease Sykes, 46, of Louisville, Tennessee, a previously registered sex offender, to serve 45 years in federal prison on child exploitation charges. A federal jury convicted Sykes’s in March 2021 of charges of production of child pornography, enticement of a minor for illegal sex, committing those offenses while being required to register as a sex offender, and possession of child pornography. Sykes had been previously convicted of statutory rape in 1998 and aggravated statutory rape in 2012.
Following his release from prison, the United States Probation Office will supervise the defendant for 30 years and he will be required to register as a sex offender in any state in which he resides, works, or attends school.
“This case demonstrates our commitment to protecting our children through the prosecution of recidivist child predators to the fullest extent of the law,” said Acting United States Attorney Francis M. Hamilton, III.
“The lengthy sentence in this case shows the significant punishment child predators face for their incomprehensible actions,” said Homeland Security Investigations (HSI) Nashville Special Agent in Charge Jerry C. Templet, Jr. “HSI will continue to work with our law enforcement partners to remove these offenders from our communities and protect their vulnerable young victims.”
According to the evidence presented at trial, the investigation began after Facebook notified the National Center for Missing and Exploited Children (NCMEC) that Sykes was soliciting a 15-year-old girl for sex and child pornography with messages he sent to the girl through Facebook. NCMEC notified the Knoxville Police Department’s Internet Crimes Against Children unit (KPD-ICAC), which immediately contacted the local Department of Children’s Services office to help identify the girl and ensure her safety. KPD-ICAC arrested the defendant within 48 hours after the minor was interviewed. Federal search warrants were used to obtain the defendant’s and the victim’s Facebook communications and to search the defendant’s phone, which revealed substantial evidence that was used at trial to convict Sykes.
The case was investigated by KPD-ICAC in partnership with HSI. The case was prosecuted by Assistant United States Attorneys Matthew T. Morris and Gretchen Mohr.
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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Sevier County Resident Convicted of Drug Trafficking and Firearms Offenses and the Distribution of Drugs Resulting in an Overdose DeathRead the Press Release
KNOXVILLE, Tenn. – On November 5, 2021, following a four-day trial in the United States District Court in Knoxville, Tennessee, a jury convicted Stacey Edward Williams, Jr., 42, currently of Sevierville, Tennessee, and formerly of Detroit, Michigan, of eight counts, including a conspiracy to distribute heroin, fentanyl, and acetyl fentanyl, multiple counts of possession and distribution of heroin, fentanyl, and acetyl fentanyl, the distribution of fentanyl and acetyl fentanyl resulting in death, and the possession of a firearm by a convicted felon.
Sentencing will be set in 2022 in the United States District Court in Knoxville, Tennessee before the Honorable Katherine A. Crytzer. Williams faces a mandatory term of imprisonment of 20 years and up to life in prison and other penalties.
At trial, the United States presented evidence that investigators with the Sevier County Street Crimes Unit used confidential informants on January 30, February 9, and November 9, 2018, to purchase heroin, fentanyl, and acetyl fentanyl from Williams. The evidence further showed that officers and detectives with the Sevier County Sheriff’s Office responded to the overdose death of a Kodak, Tennessee resident on Thanksgiving morning, November 22, 2018. Through the overdose investigation, it was determined that Williams distributed the drugs that resulted in that death. Finally, the prosecution also presented evidence 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.
Acting United States Attorney Francis M. Hamilton III and Homeland Security Investigations (“HSI”) Special Agent in Charge Jerry C. Templet Jr. made the announcement.
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.
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 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.
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Former TVA Senior Project Manager Pleads Guilty to Falsifying Financial Information as Part of A Fraudulent SchemeRead the Press Release
CHATTANOOGA, Tenn. – On November 5, 2021, James Christopher Jenkins, aka Chris Jenkins, 60, of Chattanooga entered a guilty plea to one count of making a false official statement, in violation of 18 U.S.C. § 1001 in the Eastern District of Tennessee at Chattanooga.
Sentencing has been set for March 11, 2022 at 9:00 a.m., before the Honorable Travis R. McDonough, U.S. District Judge, in the United States District Court at Chattanooga. Jenkins faces a maximum sentence of 5 years in prison and 3 years of supervised release, and $250,000 in fines.
According to court documents, Jenkins was employed from May 2011 to February 2017 as a Senior Project Manager in the Nuclear Power Group and the Major Projects Group at Tennessee Valley Authority (TVA) with fiduciary and management responsibilities which required him to file annual reports disclosing any outside positions, employment, and income. These disclosures are made through an Office of Government Ethics (OGE) Form 450. Government officials review these forms to identify conflicts of interests that may exist between TVA employees and private entities doing business with the TVA or seeking business with the TVA. For instance, a conflict of interest could, among other things, provide a TVA contractor an economic advantage over others and defeat the government’s attempt to secure a competitive contract.
TVA employees who are in a position to negotiate with vendors and contractors on behalf of TVA are required to file an annual Confidential Financial Disclosure Report which requires those employees to report certain personal assets, sources of income, and debts, and to report their other outside financial positions, agreements or arrangements. Between 2012 and 2016, Jenkins failed to annually disclose certain debts and income on the Report and sought to profit outside the scope of his employment at TVA. This failure to report led to an actual conflict of interest from which Jenkins personally benefited.
"The integrity of government employees -- especially those in supervisory or senior positions -- is paramount to maintaining the public’s trust in the officials who serve the nation. Protecting the federal procurement process from false statements is central to the mission of the Department of Justice. The defendant betrayed the public’s trust by failing to disclose these debts and other financial activities. Our office is committed to safeguarding that trust through the vigorous enforcement of federal laws," said Acting United States Attorney Francis M. Hamilton III.
"The vast majority of TVA employees serve the people of the valley by generating power, protecting our natural resources, and encouraging job growth through economic development, while also avoiding personal and financial conflicts that would undermine the public trust in TVA. Regrettably, in this instance, Mr. Jenkins failed to live up to that standard. He held a senior role at TVA with authority to negotiate with vendors and award contracts. He failed to disclose numerous conflicts with companies in which he had an ownership interest or owed substantial sums of money. The Tennessee Valley Authority - Office of Inspector General (TVA-OIG) plays an aggressive role in identifying and addressing this type of abuse, and, due to the collaborative efforts of TVA and our law enforcement partners, Mr. Jenkins has now pled guilty to falsifying an ethics disclosure that impacted financial decisions made by TVA. The TVA-OIG would like to thank the United States Attorney’s Office, specifically Assistant U.S. Attorney Steve Neff, and the Federal Bureau of Investigation for working hand in hand with our office to investigate this fraudulent activity," said Jill Matthews, TVA Acting Inspector General.
"Today’s guilty plea represents the FBI’s commitment to investigate these cases. There is zero tolerance for those who exploit their official position for personal gain. It erodes public confidence and undermines the Rule of Law. We want the people we serve to know the FBI along with our law enforcement partners will hold those accountable who betray the public's trust," said FBI Special Agent in Charge Joe Carrico.
The investigation was conducted by agents of TVA-OIG and the FBI.
Assistant U.S. Attorney Steven Neff represented the United States.
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Elizabethton Man Sentenced to 210 Months' Imprisonment for Distribution of Child PornographyRead the Press Release
GREENEVILLE, Tenn. – On November 4, 2021, James Ellison Catoe, 48, currently of Elizabethton, was sentenced by the Honorable Clifton L. Corker, in the United States District Court for the Eastern District of Tennessee at Greeneville to 210 months in prison, followed by lifetime supervised release. Catoe will be required to register with the state sex offender registry and comply with special sex offender conditions during his supervised release.
As part of the plea agreement, Catoe agreed to plead guilty to one count of an indictment charging him with distribution of child pornography in violation of 18 U.S.C. §§ 2252A (a)(2)(A) and (b)(1).
According to the filed plea agreement, in November 2019, a search warrant was executed at Catoe’s home after information was provided to the Carter County Sheriff’s Office and Homeland Security Investigations from the National Center for Missing and Exploited Children (NCMEC) about child pornography images and videos being downloaded at the residence. During the search, over 11,000 images of child pornography were found on Catoe’s computer and cellular phone. Some images depicted the sexual victimization of a toddler. During questioning, Catoe admitted to possessing child pornography and stated that he had been downloading and viewing child pornography for some time. Catoe also admitted to distributing and trading child pornography to hundreds of individuals over the course of a year. Catoe went on to tell law enforcement that he and a 14-year-old female had exchanged naked photos of themselves approximately 50 times.
The case was investigated by the Carter County Sheriff’s Office (“CCSO”) and Homeland Security Investigations (“HSI”) and was led by HSI Special Agent Travis Carrier and CCSO Captain Jeff Markland.
Assistant United States Attorney Andrew C. Parker 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 Woman Sentenced to 3 Years Imprisonment for Defrauding Local Non-ProfitRead the Press Release
KNOXVILLE, Tenn. – On November 3, 2021, Angelia Renae Brown, 50, and a resident of Knoxville, was sentenced by the Honorable Thomas Varlan, U.S. District Judge in the United States District Court for the Eastern District of Tennessee, to 36 months’ imprisonment and three years of supervised release. Brown was convicted of wire fraud, in violation of 18 U.S.C. § 1343, and filing a false tax return, in violation of 26 U.S.C. § 7206(1). Brown pleaded guilty to both offenses on May 26, 2021, pursuant to a plea agreement.
According to the filed plea agreement, from as early as 2012 and continuing through June 2020, Brown embezzled more than $2 million from her former employer—a non-profit organization in Knoxville that focuses on the welfare of abused children. During the criminal conduct, Brown worked as a staff accountant for the nonprofit organization. In furtherance of the fraud scheme, Brown forged company checks and deposited them into her personal bank account. Brown also concealed the fraud scheme from her former employer by altering the checks after they had been deposited into her bank account. In all, Brown forged 885 checks that were drawn on her former employer’s bank accounts, causing a total loss amount to her former employer of $2,064,464.99. Brown also failed to report the embezzled funds as income on her tax returns for tax years 2012 to 2019, resulting in an additional $552,224 loss to the Internal Revenue Service.
During sentencing, Brown was ordered to pay total restitution of $2,616,688.99, including $2,064,464.99 to her former employer and $552,224 to the Internal Revenue Service.
This case is the result of a joint investigation by the FBI and the Internal Revenue Service, Criminal Investigation.
Assistant U.S. Attorney William A. Roach, Jr., represented the United States.
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Knoxville Man Pleads Guilty to Murder-For-Hire ChargeRead the Press Release
KNOXVILLE, Tenn. – On October 25, 2021, Nelson Paul Replogle, 59, of Knoxville, Tennessee, entered a guilty plea to one count of Murder-For-Hire in violation of Title 18, United States Code, Section 1959. Replogle pleaded guilty before Senior United States District Judge Leon Jordan of the U.S. District Court for the Eastern District of Tennessee. Sentencing has been set for February 22, 2022, at 10:15 a.m., in U.S. District Court at Knoxville, Tennessee.
As a result of his guilty plea, Replogle faces a term of up to ten years imprisonment, a fine of up to $250,000, and supervised release for a period of three years.
As part of the written plea agreement, Replogle waived indictment by a federal grand jury and agreed to plead guilty to an information. According to documents filed in the case, Replogle admitted to using the Internet to contact a dark web entity that purported to arrange murders for hire. Replogle provided the would-be killer with the intended victim’s name and address, a description of the victim’s vehicle, and a specific date, time, and place where the victim could be found and murdered. In addition, Replogle asked that the killing appear as “road rage or [a] carjacking gone wrong.” In exchange for the anticipated murder, 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. Agents with the Federal Bureau of Investigation (“FBI”) learned of the plot and intervened and arrested the defendant. The victim was not harmed as a result of the defendant’s attempt to have the victim murdered.
This prosecution is the result of an investigation by the FBI.
Assistant United States Attorney Frank M. Dale Jr. represents the United States.
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DEA National Prescription Drug Take Back DayRead the Press Release
KNOXVILLE, Tenn. On Saturday, October 23, 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 October’s event is DEA’s 21st nationwide event since its inception 11 years ago. Last spring, Americans turned in nearly 839,543 pounds of prescription drugs at nearly 5,060 sites operated by the DEA and almost 5,000 from its state and local law enforcement partners. DEA and its partners have collected nearly 6,770 tons of expired, unused, and unwanted prescription medications since the inception of the National Prescription Drug Take Back Initiative in 2010.
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, October 23, simply means cleaning out your medicine cabinet or anywhere you keep unused, unwanted, or expired medications and dropping them off at your nearest collection site. For more information about the disposal of prescription drugs or about the October 23rd 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.
###The City of Knoxville Receives $200,000 in Federal Funding for Community Policing Development ProgramsRead the Press Release
KNOXVILLE, Tenn. – The City of Knoxville will receive $200,000 from the Department of Justice’s Office of Community Oriented Policing (COPS) that will support practices and strategies for creative approaches to preventing crime and de-escalation training, announced Acting United States Attorney Francis M. Hamilton III.
The Department of Justice’s Office of Community Oriented Policing Services (COPS Office) has announced over $33 million in funding to advance the practice of community policing in law enforcement. Community Policing Development (CPD) program funds are used to support promising practices through the development and testing of innovative strategies; building knowledge about effective practices and outcomes; and supporting new, creative approaches to preventing crime and promoting safe communities. Approximately $13 million will support the creation and delivery of national level de-escalation training efforts, as well as state and local law enforcement agency efforts to build and maintain their officers’ de-escalation proficiency.
The funding awarded to the City of Knoxville will help enhance the Knoxville Police Department’s capacity to implement, evaluate, and monitor de-escalation techniques. De-escalation techniques have the potential to help prevent the need for use of force in many police and community encounters.
The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. The only Department of Justice agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products and training and technical assistance. Through the years, the COPS Office, has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served. The COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of more than 134,000 officers. More information on all the awards announced can be found on the COPS Office website at https://cops.usdoj.gov/cpd-award.
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Joint Federal and State Law Enforcement Operation Makes Arrests for Drugs and Stolen Car OffensesRead the Press Release
KNOXVILLE, Tenn — Juan Lopez Gallardo, 44, Jairo David Posadas, 22, Josedad Delacruz, 24, Serguin Castro-Carias, 20, all of Sevier County, Tennessee, and Nolvia Rosme Carillo-Rodriguez, 42, and Pablo Daniel Suarez, 32, both of Miami, Florida, were arrested on a complaint on September 30, 2021 by agents with the Federal Bureau of Investigation ("FBI").
Lopez, Posadas, Delacruz, Castro-Carias, and Carillo-Rodriguez are charged with a conspiracy to distribute 500 grams or more of cocaine. If convicted of that charge, each defendant could face at least 5 years and up to 40 years in prison.
Additionally, Lopez and Suarez are charged with two counts of conspiracy to transport stolen vehicles in interstate commerce and the interstate transportation of stolen vehicles. If convicted of those charges, each defendant could face up to 10 years in prison.
An initial appearance for Lopez, Posadas, Delacruz, and Castro-Carias, was held on October 1, 2021 in United States District Court in Knoxville, before the Honorable Debra C. Poplin, United States Magistrate Judge. The defendants were ordered held in custody pending the setting of a trial date.
An initial appearance for Suarez was held on September 30, 2021 in United States District Court in Miami, before the Honorable Lauren Louis, United States Magistrate Judge. The defendant was released and will travel to the Eastern District of Tennessee for arraignment.
An initial appearance for Carillo-Rodriguez held on October 1, 2021 in United States District Court in Fort Lauderdale, before the Honorable Lurana Snow, United States Magistrate Judge. The defendant was ordered detained and will be transported to the Eastern District of Tennessee for arraignment.
Details of some of the factual allegations underlying the charges are outlined in a criminal complaint and supporting affidavit on file with the United States District Court for the Eastern District of Tennessee at Knoxville.
Acting U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee; and FBI Special Agent in Charge Joseph E. Carrico made the announcement.
The participant law enforcement agencies in this investigation include the FBI Knoxville High Intensity Drug Trafficking Area Rocky Top Task Force, FBI Knoxville Smoky Mountains Economic Crimes Task Force, Sevier County Street Crimes Unit, Sevier County Sheriff’s Office, Sevierville Police Department, Pigeon Forge Police Department, Gatlinburg Police Department, Tennessee Department of Revenue - Special Investigations Unit, Tennessee Bureau of Investigation, Tennessee Highway Patrol, Humphreys County Sheriff's Office, FBI Miami, Miami Gardens Police Department, Hialeah Police Department, Fort Lauderdale Police Department, Miami-Dade Police Department, and the Medley Police Department.
Assistant U.S. Attorney Kevin Quencer will represent the United States in the prosecution of this case.
The ongoing investigation leading to the complaint was the product of a partnership between numerous federal, state, and local law enforcement agencies cooperating under the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program. The OCDETF program is 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.
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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Joint Federal and State Law Enforcement Operation Makes Arrest for Public Corruption OffensesRead the Press Release
KNOXVILLE, Tenn. – On October 6, 2021, a Federal Grand Jury in Knoxville returned a multi-count Indictment against two individuals charging violations of federal offenses prohibiting public officials from taking cash payments in exchange for official acts.
Brandy M. Thornton, 44, and Roberta Lynne Webb Allen, 55, both of Sevier County, Tennessee, charged with two counts of taking cash payments in exchange for an official act. If convicted of those charges, they each could face up to 20 years in prison.
Allen appeared in court on October 7, 2021 before U.S. Magistrate Judge H. Bruce Guyton and entered a plea of not guilty to the charges in the indictment. She was released pending trial, which has been set for December 14, 2021, before the Honorable Judge Crytzer in United States District Court, in Knoxville, Tennessee.
Acting U.S. Attorney Francis M. Hamilton III, of the Eastern District of Tennessee, and Federal Bureau of Investigation ("FBI") Special Agent in Charge, Joseph E. Carrico, made the announcement.
The participant law enforcement agencies in this investigation include the FBI Knoxville High Intensity Drug Trafficking Area Rocky Top Task Force, FBI Knoxville Smoky Mountains Economic Crimes Task Force, Sevier County Street Crimes Unit, Sevier County Sheriff’s Office, Sevierville Police Department, Pigeon Forge Police Department, Gatlinburg Police Department, Tennessee Department of Revenue - Special Investigations Unit, Tennessee Bureau of Investigation, Tennessee Highway Patrol, Humphreys County Sheriff's Office, FBI Miami, Miami Gardens Police Department, Hialeah Police Department, Fort Lauderdale Police Department, Miami-Dade Police Department, and the Medley Police Department.
Assistant U.S. Attorney Kevin Quencer will represent the United States in the prosecution of this case.
The ongoing investigation leading to the indictment was the product of a partnership between numerous federal, state, and local law enforcement agencies cooperating under the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program. The OCDETF program is 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.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
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Knoxville YWCA Receives $475,000 in Federal Funding for Housing AssistanceRead the Press Release
KNOXVILLE, Tenn. – The Young Woman’s Christian Association of Knoxville and the Tennessee Valley (YWCA) will receive $475,000 from the Department of Justice’s Office on Violence Against Women (OVW) to support YWCA’s affordable transitional housing program, announced Acting United States Attorney Francis M. Hamilton III.
YWCA's Safer and Stronger Transitional Housing Program offers transitional housing to victims of domestic violence and their families. This transitional housing program offers financial education, parenting education, and trauma-informed care, including support groups and classes specifically for victims of domestic violence.
This award is one of many that OVW is distributing in 2021 to support projects that meaningfully address the needs of underserved and marginalized survivors, improve access to justice, enhance survivor safety, hold offenders accountable, and build a coordinated community response to violence against women.
The Office on Violence Against Women provides federal leadership in developing the national capacity to reduce violence against women and administer justice for and strengthen services to victims of domestic violence, dating violence, sexual assault, and stalking.
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Coffee County Nonprofit Receives $549,500 in Federal Funding to Aid Safe Families ProjectRead the Press Release
KNOXVILLE, Tenn. – The nonprofit Coffee County Drug Court Foundation will receive $549,500 from the Department of Justice’s Office on Violence Against Women (OVW) to support its Safe Families Project, announced Acting United States Attorney Francis M. Hamilton III.
Coffee County’s Safe Families Project will bring together local stakeholders, including the public defender’s office, sheriff’s office, police departments, probation office, batterer intervention providers, and substance abuse prevention providers, in a three-year program that will serve at least 60 families in Coffee County’s Family Treatment Court who will simultaneously be working to overcome the impact of domestic violence, addiction, and custody challenges.
“Helping families recover from the devastating impact of domestic violence and drug addiction is an essential function of the Department of Justice,” said Acting U.S. Attorney Hamilton. “Our office is pleased to announce this significant grant that will assist the important work being undertaken by the Coffee County Drug Court Foundation to overcome the destructive impact of domestic violence and drug addiction on families in our community.”
This award is one of many that OVW is distributing in 2021 to support projects that meaningfully address the needs of underserved and marginalized survivors, improve access to justice, enhance survivor safety, hold offenders accountable, and build a coordinated community response to violence against women.
“The awards we make this year will touch the lives of millions of survivors of violence and help our nation end these devastating crimes,” said Allison Randall, OVW Acting Director. “OVW is proud to be the leading federal voice in the country’s fight against sexual and domestic violence.”
The Office on Violence Against Women provides federal leadership in developing the national capacity to reduce violence against women and administer justice for and strengthen services to victims of domestic violence, dating violence, sexual assault, and stalking.
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Local Providers Agree to Settle Allegations of Improper Billing for Electro-Acupuncture DevicesRead the Press Release
KNOXVILLE, Tenn. – The United States Attorney’s Office announced today that Align Health and Holistic Medical Center, Inc. and Align Health Management, Inc., (collectively “Align”), Eric Anderson, P.A. d/b/a Anderson Chiropractic Clinic (“Anderson Chiropractic”), their owners and a former employee have agreed to pay $163,400 to resolve allegations that they knowingly and improperly billed Medicare for electro-acupuncture using peri-auricular stimulation devices in violation of the False Claims Act (“FCA”).
Align and Anderson Chiropractic are outpatient clinics located in Maryville, Tennessee that offer medical and chiropractic services for the treatment of pain. According to the contentions of the United States contained in the settlement agreement, between September 2016 and March 2019 Align and Anderson Chiropractic routinely presented, or caused to be presented, to Medicare false claims for payment for the placement of electro-acupuncture devices on patients. The placement of these devices was improperly billed under code L8679, which resulted in the clinics receiving payments from Medicare to which they were not entitled.
L8679 is a billing code for “implantable neurostimulator, pulse generator” devices that are surgically implanted into the central nervous system or targeted peripheral nerves through procedures that are typically performed by a surgeon in an operating room. However, the United States contends that Align and Anderson Chiropractic falsely billed Medicare under L8679 for electro-acupuncture devices they knew were not surgically implanted into their patients and for procedures that did not involve anesthesia or take place in an operating room. The underlying services for which Align and Anderson Chiropractic submitted the L8679 claims involved application of a device used for electro-acupuncture. Common brand names for this device include P-Stim, Stivax, NeuroStim, ANSiStim, E-Pulse, and NSS-2 Bridge. The electro-acupuncture devices were applied by inserting needles into patients’ ears and by taping the devices behind their ears with an adhesive. Medicare does not reimburse for electro-acupuncture devices billed as neurostimulators and did not reimburse for acupuncture at all during the period of the covered conduct.
In addition to paying the civil settlement, which was based on the parties’ ability to pay, Align, Anderson Chiropractic, and their owners have agreed to enter into an Integrity Agreement (“IA”) with the Office of Inspector General of the Department of Health and Human Services (“OIG-HHS”). The IA requires, among other things, that Align, Anderson Chiropractic, and their owners implement specific measures intended to prevent future health care fraud and to address evolving compliance risks. These measures include training for staff on applicable health care fraud laws and submitting to a claims review conducted by an Independent Review Organization to ensure compliance with Medicare billing requirements.
This investigation resulted from a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Tennessee, OIG-HHS, and the Southeastern Unified Program Integrity Contractor (“UPIC”).
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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Tennessee Doctor Pleads Guilty to Maintaining an Illegal Drug PremisesRead the Press Release
A Tennessee doctor pleaded guilty yesterday in the Eastern District of Tennessee to maintaining his Knoxville, Tennessee, pain clinic as an illegal drug premises.
According to court documents, Dr. David Newman, 61, of Maryville, owned, operated, and was Medical Director of Tennessee Valley Pain Specialists (TVPS), a non-insurance, cash-equivalent pain clinic. Newman owned this clinic with Dr. Steven Mynatt. Newman continued to operate and serve as Medical Director of TVPS, despite knowing that Mynatt was prescribing opioids to patients outside professional practice and for no legitimate medical purpose. Newman and Mynatt were charged with drug-related offenses as part of the April 2019 Appalachian Regional Prescription Opioid Strick Force Surge. Mynatt entered a guilty plea related to his distribution of controlled substances at TVPS in February 2020 and will be sentenced on Feb. 9, 2022.
Newman pleaded guilty to unlawfully maintaining a drug premises. He is scheduled to be sentenced on Feb. 9, 2022, and faces a maximum sentence of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee; Special Agent in Charge J. Todd Scott of the Drug Enforcement Administration (DEA); Special Agent in Charge Joseph Carrico of the FBI’s Knoxville Field Office; Special Agent in Charge Derrick L. Jackson of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG); and Special Agent in Charge Andy Corbitt of the Tennessee Bureau of Investigation (TBI) made the announcement.
The DEA, FBI, HHS-OIG, and TBI are investigating the case.
Trial Attorney Louis Manzo and Assistant Chief Jillian Willis of the Justice Department’s Fraud Section and Assistant U.S. Attorney Anne-Marie Svolto of the Eastern District of Tennessee are prosecuting the case.
The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 federal districts, has charged more than 85 defendants who are collectively responsible for distributing more than 65 million pills.
Tennessee Doctor Pleads Guilty to Maintaining an Illegal Drug PremisesRead the Press Release
KNOXVILLE, Tenn. – On September 13, 2021, Dr. David Newman, 61, of Maryville, Tenn. entered a guilty plea to maintaining his pain clinic as an illegal drug premises in the Eastern District of Tennessee.
Sentencing has been set for February 9, 2022, at 3:00 pm, before the Honorable Thomas Varlan, U.S. District Judge, in the United States District Court at Knoxville. Newman faces a maximum sentence of 20 years in prison.
According to court documents, Newman owned, operated, and was Medical Director of Tennessee Valley Pain Specialists (TVPS), a non-insurance, cash-equivalent pain clinic. Newman owned this clinic with Dr. Steven Mynatt. Newman continued to operate and serve as Medical Director of TVPS, despite knowing that Mynatt was prescribing opioids to patients outside professional practice and for no legitimate medical purpose. Newman and Mynatt were charged with drug-related offenses as part of the April 2019 Appalachian Regional Prescription Opioid Strick Force Surge; Mynatt entered a guilty plea related to his distribution of controlled substances at TVPS in February 2020.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee; Special Agent in Charge J. Todd Scott of the Drug Enforcement Administration (DEA); Special Agent in Charge Joseph Carrico of the FBI’s Knoxville Field Office; Special Agent in Charge Derrick Jackson of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG); and Special Agent in Charge Andy Corbitt of the Tennessee Bureau of Investigation (TBI) made the announcement.
The investigation was conducted by the DEA, FBI, HHS-OIG, and TBI.
Trial Attorney Louis Manzo, Assistant Chief Jillian Willis of the Justice Department’s Fraud Section, and Assistant U.S. Attorney Anne-Marie Svolto of the Eastern District of Tennessee are prosecuting the case.
The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 85 defendants who are collectively responsible for distributing more than 65 million pills.
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Knoxville Man Sentenced to 15 Years in Prison for Advertising Child Pornography on the InternetRead the Press Release
KNOXVILLE, Tenn. – On September 10, 2021, Thomas A. Varlan, United States District Judge for the Eastern District of Tennessee, sentenced Daniel Logan Brown, 24, to serve 180 months in federal prison for advertising child pornography on the internet. Following his imprisonment, Brown will be supervised by the United States Probation Office for ten years and will be required to register with the state sex offender registry in any state in which he lives, works, or attends school. Additionally, Brown will be required to pay $60,000 in restitution to victims of his crime.
According to the filed plea agreement, Brown admitted that he advertised child pornography by circulating hyperlinks to others that linked to online data storage accounts where Brown had saved child pornography. According to other documents filed in the case, the online storage accounts contained thousands of files of child pornography for others to download.
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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Knoxville Man Pleads Guilty to Scheme to Defraud the Small Business Administration's COVID-19 Economic Relief ProgramsRead the Press Release
KNOXVILLE, Tenn. – On September 9, 2021, James Waylon Howell, 39, currently of Knoxville, Tennessee, entered a guilty plea to one count of wire fraud and one count of money laundering in the United States District Court for the Eastern District of Tennessee at Knoxville.
Sentencing has been set for January 13, 2022, at 9:45 am, before the Honorable R. Leon Jordan, in the United States District Court at Knoxville. Howell faces a term of imprisonment of up to 20 years, a fine of up to $250,000, and a term of supervised release of up to three years. Under the terms of the written plea agreement, Howell has agreed to pay restitution to the victims of his fraud in the amount of $69,354.88.
As part of the written plea agreement, Howell waived an indictment by a Federal Grand Jury and agreed to plead guilty to one count of wire fraud, in violation of 18 U.S.C. §1343, and one count of money laundering, in violation of 18 U.S.C. §1957.
According to the plea agreement, beginning on or about April 1, 2020, and continuing through the end of June 2020, Howell applied for four loans totaling $154,700 through the Small Business Administration’s Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program. Howell submitted false and fraudulent applications under the names of two companies that did not qualify for the Covid-19 relief funds that Howell sought. Howell submitted two fraudulent applications to financial institutions seeking PPP funds and two fraudulent applications to the Small Business Administration seeking EIDL funds. As part of his fraud scheme, Howell submitted false supporting records and made false statements about the number of individuals the companies employed, the revenue generated, and the wages paid. Howell also made false statements about the corporate entities and the intended use of the loan proceeds.
The plea agreement reflects that Howell submitted an online application to the Small Business Administration in the name of Advanced Strategy Holdings, LLC, seeking $83,800 in EIDL funds. On the application and in the supporting documents, Howell falsely claimed that Advanced Strategy Holdings employed four individuals, generated $700,000 in gross revenue, incurred $0 in cost of goods sold, and paid wages of $440,000 in the 12 months preceding the Covid-19 pandemic. These claims were all false. In further support of the application, Howell
submitted fabricated Internal Revenue Service documents. After receiving the loan proceeds from the Small Business Administration, Howell transferred the proceeds to his personal bank account, knowing that the loan proceeds were obtained fraudulently.
This case is the result of an investigation conducted by the FBI and the Internal Revenue Service’s Criminal Investigation division.
The case is being prosecuted by Assistant U.S. Attorney William A. Roach, Jr.
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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Jonesborough Man Sentenced for Methamphetamine and FirearmRead the Press Release
GREENEVILLE, Tenn. – On September 9, 2021, Robert Harrison Blevins, 54, of Jonesborough, Tennessee, was sentenced by the Honorable Clifton L. Corker, in the United States District Court for the Eastern District of Tennessee at Greeneville, to 152 months imprisonment, followed by a four-year term of supervised release.
In August 2019, a Grand Jury issued a multi-count indictment for Blevins alleging that he possessed methamphetamine with the intent to distribute it, and that he possessed a firearm in furtherance of that drug trafficking offense. Blevins entered a guilty plea to possession of methamphetamine with the intent to distribute and to possession of the firearm in furtherance of the drug trafficking offense.
As stated in the plea agreement filed with the court, on April 3, 2019, patrons of a McDonald’s on Market Street in Johnson City noticed a man who appeared unresponsive, sitting in the driver’s seat of a parked vehicle. Johnson City emergency medical services (EMS) and Johnson City Police Department officers responded to the location. EMS personnel were able to wake Blevins and determine that he was not in need of medical services. Police saw a handgun beneath the driver’s seat and determined that Blevins was on probation. When police asked about the firearm, Blevins attempted to flee, but fell and was taken into custody. A search of Blevins’ car located two loaded firearms, 7 grams of methamphetamine in individual baggies, scales, and other drug paraphernalia.
The case was investigated by the Johnson City Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”).
“The United States Attorney’s Office is committed to targeting those individuals who use firearms to protect their drug trafficking and to working with our state and federal partners to reduce the threat of violence in our communities,” said Acting U.S. Attorney, Francis M. Hamilton III.
ATF Special Agent in Charge, Mickey French remarked, “ATF’s Crime Gun Intelligence partnerships with our public safety partners and the U.S. Attorney’s Office focuses on the devastating impact of firearms violence and works with the entire community to reduce the potential for violent crime.”
Assistant United States Attorney B. Todd Martin represented the United States.
This case is 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 work 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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Federal Jury Convicts Tennessee Man of Possessing A Firearm While Being A Convicted FelonRead the Press Release
GREENEVILLE, Tenn. - Following a three-day trial in United States District Court in Greeneville, a jury convicted Emory Q. Jackson, 41, of Johnson City, Tennessee, of possessing a firearm while being a prohibited person, specifically a person having been a convicted of a crime punishable by more than one year in prison.
Sentencing is set for February 28, at 9:00 am., before the Honorable J. Ronnie Greer, in United States District Court in Greeneville, Tennessee. Jackson faces a fifteen-year minimum mandatory and a maximum life sentence in prison pursuant to the Armed Career Criminal Act (ACCA).
The evidence presented at trial demonstrated that Jackson possessed a firearm both on the streets of Johnson City and in a music video posted to Jackson’s Social Media Account, where he waved and pointed the firearm at the camera while rapping.
Acting U.S. Attorney Francis M. Hamilton, III of the Eastern District of Tennessee, made the announcement.
The Johnson City Police Department led the investigation that resulted in the indictment and subsequent conviction of Jackson.
Assistant U.S. Attorney Meghan L. Gomez and Andrew C. Parker represented the United States at trial.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
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Limestone Man Sentenced for Hobbs ActRead the Press Release
Greeneville, Tenn. – On September 9, 2021, Marc Kristopher Skeen, 37, of Limestone, Tennessee, was sentenced to 245 months imprisonment, followed by a five-year term of supervised release by the Honorable Clifton L. Corker, in the United States District Court for the Eastern District of Tennessee at Greeneville.
A Grand Jury issued a multi-count indictment for Skeen in October 2019, for the offenses of robbery of a convenience store in Johnson City, Tennessee and discharging a firearm during the robbery. Skeen entered a plea of guilty in June 2021.
According to the plea agreement filed with the court, on July 28, 2019, Skeen arrived at the Stop In Market on S. Roan Street, in Johnson City, Tennessee. As he arrived, he discharged a firearm through his vehicle’s windshield. He then exited his car, fired two more rounds through the glass door of the convenience store and into nearby equipment. Officers of the Johnson City Police Department responded to the location. Skeen took the convenience store clerk hostage, which resulted in a 6-hour standoff with police. During the standoff, Skeen forced the hostage to provide him with beer and cigarettes from the store. Skeen released his hostage without injury.
“This prosecution is part of the Department of Justice’s comprehensive strategy to combat violence in our communities, and an example of a just outcome resulting from the collaboration between our office and the Johnson City Police Department.” said Acting United States Attorney Francis M. Hamilton III.
The criminal indictment was the result of an investigation by the Johnson City Police Department and was led by Investigator Shane Malone.
Assistant United States Attorneys B. Todd Martin represented the United States.
This case is 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 work 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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Knoxville Man Sentenced to Two Years in Prison for Aggravated Identity TheftRead the Press Release
KNOXVILLE, Tenn. – On September 9, 2021, Dios E. Tate, 32, currently of Knoxville, Tennessee, was sentenced in the United States District Court for the Eastern District of Tennessee at Knoxville, to serve 24 months in federal prison, followed by one year of supervised release, by the Honorable Thomas Varlan, U.S. District Judge.
According to the plea agreement filed with the court, Tate pled guilty to one count of aggravated identity theft. Tate admitted that on November 16, 2020, he used the social security number of another person to obtain a Tennessee identification card from the Knox County Clerk in a name of another person.
This prosecution resulted from an investigation by the Tennessee Highway Patrol, the Federal Bureau of Investigation, and the U.S. Social Security Administration – Office of Inspector General.
Assistant United States Attorney T.J. Harker represented the United States.
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Repeat Offender Sentenced for Federal Firearms ChargesRead the Press Release
GREENEVILLE, Tenn. – On September 2, 2021, Brandon Royce Clark, 32, of Morristown, Tennessee, was sentenced to serve 117 months in the Federal Bureau of Prisons, followed by four years of supervised release by the Honorable Clifton L. Corker, in the United States District Court for the Eastern District of Tennessee at Greeneville. The sentence reflects a 96-month term of imprisonment followed by three years on supervised release for instant case to be run consecutively to a 21-month term of imprisonment with one year of supervised release to follow based on a revocation of supervised release for a prior conviction.
As part of the plea agreement filed with the court, Clark pled guilty to one count of being a convicted felon in the unlawful possession of a firearm.
According to the filed plea agreement, on July 13, 2019, less than two months after being released from federal prison, Clark was involved in an incident that led to his shooting two individuals near Boatsman Mountain Road in Morristown, Tennessee. Clark was traffic stopped the following day by a member of the Hamblen County Sheriff’s Office Narcotics Unit who was looking for the vehicle involved in the shooting and Clark was found to be in possession of a .380 semi-automatic pistol.
Court records reflect that Clark was previously convicted of being a felon in possession of a firearm in the Eastern District of Tennessee following a December 2010 event in which he fired shots into an occupied vehicle. Clark was sentenced to 100 months in Federal Bureau of Prisons with three years of supervised release to follow in that case. Clark was released from prison in that case on May 24, 2019.
The prosecution resulted from an investigation by the Hamblen County Sheriff’s Office Detectives and Narcotics Units, and with the assistance of the 3rd Judicial District Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Assistant United States Attorney J. Christian Lampe represented the United States.
This case is 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 work 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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Federal Jury Convicts Former East Tennessee Clinic Owner of Unlawful Opioid DistributionRead the Press Release
CHATTANOOGA, Tenn. – On September 1, 2021, following a three-day trial in the United States District Court at Chattanooga, a jury convicted Mark Daniel Allen, 64, formerly of Manchester, Tennessee, of unlawfully distributing prescription opioids to patients at a clinic he owned in Manchester, Tennessee. Following the jury’s verdict, Allen was taken into custody. Sentencing is scheduled for January 21, 2022, at 10:00 a.m., before the Honorable Travis R. McDonough. Allen faces up to 20 years in prison for each count of conviction.
According to court documents and evidence presented at trial, Allen was a nurse practitioner who distributed oxycodone not for a legitimate medical purpose outside the course of professional practice and used his clinic for unlawful drug distribution. Specifically, the evidence showed that through his clinic, Volunteer Family Medical, he wrote controlled substance prescriptions for more than 15,000 pills to three women with whom he had sexual relationships, and a male patient who later passed away. Allen was convicted of one count of maintaining a drug-involved premises and six counts of unlawful distribution of a controlled substance outside the scope of professional practice.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee; Special Agent in Charge Joseph Carrico of the FBI’s Knoxville Field Office; Special Agent in Charge Derrick Jones of the Department of Health and Human Services, Office of Inspector General (HHS-OIG); and Director David Rausch of the Tennessee Bureau of Investigation (TBI) made the announcement.
The FBI, HHS-OIG, TBI, Manchester Police Department, and Coffee County Sheriff's Office investigated the case.
Assistant U.S. Attorney James Brooks of the Eastern District of Tennessee and Trial Attorney Emily Petro of the Criminal Division’s Fraud Section represented the United States at trial.
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Bulls Gap Man Sentenced to 235 Months for Possession of a Firearm and AmmunitionRead the Press Release
Greeneville, Tenn. – On August 23, 2021, Harold Vernon Smith, currently of Bulls Gap, Tennessee, was sentenced to serve 235 months in prison by the Honorable J. Ronnie Greer in the United States District Court for the Eastern District of Tennessee at Greeneville. In March of 2021, Smith was convicted after a jury trial of being a felon in possession of a firearm and ammunition in violation of U.S.C. §92(g)(1).
According to the trial testimony, on May 11, 2018, the Greene County Sheriff’s Office began an investigation related to Leaving the Scene of an Accident with Personal Injury. Witnesses described the vehicle involved, and, a short time later, a Hawkins County Sheriff’s Office deputy saw a car matching the description in a nearby area. After a pursuit, law enforcement located the car, which was abandoned. The investigation identified Smith as the suspect. On May 13, 2018, the Greene County Sheriff’s Office charged Smith with filing a false report related to the May 11, 2018, incident. On June 21, 2018, the Greene County Sheriff’s Office and the Third Judicial Drug and Violent Crime Task Force arrested Smith in a wooded area on Sunrise Church Road, near Interstate 81 and Highway 11E/W, off Andrew Johnson Highway. At the time of his arrest, Smith was armed with a loaded revolver. A bag that he owned was located nearby and contained his personal items as well as a box of ammunition for the revolver.
Judge Greer determined that Smith was an Armed Career Criminal, subject to a mandatory minimum of 180 months, up to life imprisonment. Smith was sentenced to 235 months in prison followed by three years on supervised release.
Acting U.S. Attorney Trey Hamilton of the Eastern District of Tennessee; and the Bureau of Alcohol, Tobacco, Firearms and Explosives made the announcement.
The criminal indictment was the result of an investigation by the Greene County Sheriff’s Office, the Third Judicial Drug and Violent Crime Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. This investigation was led by ATF Special Agent Bryan Williams.
Assistant United States Attorneys B. Todd Martin and Emily Swecker represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
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Former Nurse Sentenced for Sending Biohazardous Material Through the MailRead the Press Release
KNOXVILLE, Tenn. – On August 23, 2021, Della Marie Gibson, 37, pleaded guilty before United States Magistrate Judge H. Bruce Guyton to two counts of sending biohazardous materials through the United States mail. After receiving her guilty pleas, the Court imposed a two-year sentence of probation.
According to documents filed with the Court, on or about April 5, 2021, Gibson mailed and had delivered, using the United States Postal Service (USPS), a package containing feces to her husband’s ex-wife. On or about April 9, 2021, Gibson obtained human blood from a patient during her regular duties as a registered nurse and placed the patient’s blood on a feminine napkin, which Gibson then mailed to the same victim using the USPS.
While on probation, Gibson will be supervised by the United States Probation Office and must undergo mental health treatment, anger management treatment, and have no contact with the victim or her minor children. In addition, Gibson is prohibited from obtaining or seeking a position in the healthcare field involving direct contact with patients.
“The U.S. Attorney’s Office is committed to prosecuting those who use the United States Postal Service to threaten or intimidate individuals or to jeopardize the safety of federal employees,” said Acting United States Attorney Francis M. Hamilton III.
“The egregious acts done by this defendant in mailing the biohazardous materials could have caused potential harm to the intended recipient, our postal employees and facilities,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “Postal Inspectors are committed to defending the nation’s mail system and providing a safe environment for Postal Service employees and customers. We are grateful for the assistance from our law enforcement partners and the swift action taken by the U.S. Attorney’s Office to obtain a conviction and sentencing for this investigation.”
The criminal indictment was the result of an investigation by the United States Postal Inspector and the Loudon County Sheriff’s Office.
Assistant United States Attorney Jennifer Kolman represented the United States.
Donna J. Clark Indicted for Fraud and Money Laundering in COVID-19-Related PPP Loan SchemeRead the Press Release
On August 9, 2021, Donna J. Clark, 64, of Benton, TN, was arrested and arraigned on an indictment charging her with wire fraud, money laundering, and operating an unlicensed money transmittal business, commonly known as a “money mule” operation. Clark pleaded not guilty to the charges, and trial has been set for October 5, 2021, at 9:00 a.m., before the Honorable Charles E. Atchley, Jr., in the United States District Court for the Eastern District of Tennessee at Chattanooga.
According to court documents filed by the United States, from October 2020 to July 2021, Clark participated in a scheme in which she received, deposited, transferred, and transmitted money obtained as part of fraudulent schemes – including fraud related to the receipt of a COVID-19-related PPP loan – in order to add layers to the money trail from victims to the criminal actors for whom Clark laundered money.Clark faces a possible sentence of up to 30 years’ imprisonment on the wire fraud count, up to 10 years’ imprisonment on the money laundering count, and up to 5 years’ imprisonment for operating an unlicensed money transmittal business, along with significant fines, restitution, and forfeiture of property.
Assistant United States Attorney Steven Neff represents the United States.
The investigation was conducted by the FBI and the U.S. Attorney's Coronavirus Fraud Task Force.
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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/coronavirus.
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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Former Chattanooga-Area Public Claims Adjuster Sentenced for Mail FraudRead the Press Release
CHATTANOOGA, Tenn. – On August 4, 2021, Benjamin Reichel, 55, was sentenced to serve 54 months in prison, followed by three years’ supervised release, by the Honorable Curtis L. Collier, in the United States District Court for the Eastern District of Tennessee at Chattanooga.
In November 2020, as part of a negotiated plea agreement, Reichel pleaded guilty to felony mail fraud charges. According to court records, Reichel operated a Chattanooga-area business known as Loss Recovery Specialists (“LRS”). LRS held itself out to be a public claims adjuster licensed by the State of Tennessee to negotiate with insurance companies on behalf of homeowners and others who had suffered property damage.
When homeowners reached out to Reichel for help, Reichel fraudulently diverted his clients’ funds for his own personal gain. The United States argued at sentencing that, under Reichel’s scheme, rather than using the funds to repair his clients’ homes, he used the money to pay for, among other things, a babysitter, massages, the lease on an Audi, personal vacations, and a swimming pool, impacting a number of innocent victims.
Reichel will be required to make restitution of over $850,000 to his victims.
The charges resulted from an investigation conducted by the Federal Bureau of Investigation, the United States Postal Inspection Service, the Cleveland Police Department, and other local law enforcement agencies.
Assistant U.S. Attorney Kyle J. Wilson represented the United States.
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Knoxville Woman Pleads Guilty to Scheme to Defraud the Small Business Administration’s COVID-19 Economic Relief ProgramsRead the Press Release
KNOXVILLE, Tenn. – On August 5, 2021, Porsha Tims Bush, 41, of Knoxville, entered a guilty plea to one count of executing a wire fraud scheme in the United States District Court for the Eastern District of Tennessee at Knoxville.
Sentencing is set for January 7, 2022, at 2:00 pm, before United States District Judge Katherine Crytzer. Bush faces a term of imprisonment of up to 20 years, a fine of up to $250,000, and a term of supervised release of up to three years. Bush has agreed to pay restitution to the victims of her fraud scheme in the amount of $471,621.
As part of the written plea agreement filed with the court, Bush waived an indictment by a federal grand jury and agreed to plead guilty to one count of wire fraud, in violation of 18 U.S.C. § 1343.
According to court filings, from March to June 2020, Bush applied for ten loans for $547,286 through the Small Business Administration’s (SBA) Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program. Bush submitted false and fraudulent applications under the names of various companies that either did not qualify for COVID-19 relief funds or that did not exist. Bush submitted nine fraudulent applications to financial institutions seeking PPP funds and one fraudulent application to the SBA seeking EIDL funds. As part of her fraud scheme, Bush submitted fabricated supporting records and made false statements about the number of employees she had, the revenue she generated, and the amount of payroll expenses she incurred. Bush also made false statements about the corporate entities and the intended use of the loan proceeds.
In one instance, on March 30, 2020, Bush submitted an online application to the SBA in the name of Enlightenment Family Care, Inc., seeking $150,000 in EIDL funds. On the application, Bush falsely claimed that Enlightenment Family Care employed four individuals, generated $335,651 in gross revenue, and paid wages of $45,651 in the twelve months preceding the COVID-19 pandemic. These claims were all false. In further support of the application, Bush included fraudulent supporting documents, including a falsified Profit and Loss Statement and a fabricated Internal Revenue Service Form 941, Employer Quarterly Federal Tax Return, for the first quarter of 2020.
As a result of Bush’s fraudulent scheme, lenders approved eight of her fraudulent applications. Rather than using the funds for permissible business expenses, as required by the SBA, Bush used the money to pay off personal debt, pay for personal travel, purchase clothes and electronics, and to fund her daily lifestyle.
During the investigation, law enforcement obtained warrants to seize approximately $77,820.44 in fraudulent proceeds held in three bank accounts controlled by Bush. As set forth in the filed plea agreement, Bush will forfeit these seized funds to the United States.
This case is the result of an investigation conducted by the FBI.
The case is being prosecuted by Assistant U.S. Attorney William A. Roach, Jr.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Federal Jury Convicts Massachusetts Man on Five Counts of Child Exploitation Related OffensesRead the Press Release
GREENEVILLE, Tenn. - Following a four-day trial in United States District Court at Greeneville, a jury convicted Nicholas Nassif Hayek, 22, of Leominster, Massachusetts, of knowingly or attempting to knowingly entice a minor to engage in sexual activity, 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, knowingly transferring obscene matter to another individual who had not attained the age of 16 years, knowingly receiving child pornography and knowingly possessing child pornography involving a child less than 12 years of age.
Sentencing is set for November 29, 2021, at 1:30 p.m., before the Honorable J. Ronnie Greer, in United States District Court for the Eastern District of Tennessee at Greeneville. Hayek faces a maximum life sentence in prison and a 10-year minimum mandatory and a 15-year minimum mandatory for count one and two, respectively, for enticing a minor.
The evidence presented at trial demonstrated that Hayek found a 10-year-old child via social media. Hayek befriended the child and at trial the jury saw numerous chat messages exchanged between the two. The messages also detailed the 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.
Acting U.S. Attorney Francis M. Hamilton, III of the Eastern District of Tennessee, made the announcement.
The Federal Bureau of Investigations led the investigation that resulted in the indictment and subsequent conviction of Hayek.
Assistant U.S. Attorneys Meghan L. Gomez and J. Gregory Bowman 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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Knoxville and Chattanooga Gang Members Convicted of Drug, Firearm, and Money LaunderingRead the Press Release
KNOXVILLE, Tenn. – On July 23, 2021, a federal jury convicted Alim Turner, 23, Ushery Stewart, 22, Ronald Turner, 25, Kedaris Gilmore, 23, Mahlon Prater, Jr., 25, and Trevor Cox, 22, all of Knoxville, TN, and Demetrius Bibbs, 29, of Chattanooga, TN, of conspiring to distribute various controlled substances, including methamphetamine, heroin, fentanyl, marijuana, oxycodone, alprazolam, and buprenorphine. The jury also convicted various defendants, including Jyshon Forbes, 27, of Knoxville, of conspiracy to commit money laundering. In addition, multiple defendants were convicted of the possession of firearms in furtherance of drug trafficking offenses, and numerous other counts involving the illegal distribution of drugs and unlawful possession of firearms in East Tennessee.
The verdict follows a two-week trial in front of United States District Judge Thomas A. Varlan in which all eight defendants were tried together. The defendants face varying terms of imprisonment of up to life in prison and $10,000,000 in fines. Sentencing hearings for all eight defendants will be set for early 2022.
According to court documents, seven other charged members of the conspiracy previously pleaded guilty. The second superseding indictment resulted from an investigation conducted by the Federal Bureau of Investigation, United States Postal Inspection Service, Knoxville Police Department, 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.
The proof presented at trial revealed that seven of the defendants were members of the Unknown Ghost Vice Lords in Knoxville and another defendant, Demetrius Bibbs, was a member of the Black P Stone Bloods in Chattanooga. The proof also showed that the members of the Unknown Ghost Vice Lords distributed kilogram quantities of methamphetamine and other drugs in the Knoxville and Chattanooga areas.
"This prosecution is part of the Department of Justice's comprehensive strategy to reduce violence and increase safety in the community by disrupting and dismantling violent criminal organizations that distribute highly addictive, dangerous, and deadly drugs, such as fentanyl and methamphetamine," said Acting United States Attorney Francis M. Hamilton III.
“This verdict demonstrates the FBI’s commitment to investigate violent criminal organizations and individuals who engage in this type of illegal activity. The teamwork between our agents and state and local law enforcement partners ensured there are fewer predators endangering and victimizing the vulnerable and innocent members of our community,” said Joseph E. Carrico, Special Agent-in-Charge of the Knoxville office of the Federal Bureau of Investigation.
“This conviction is the result of the vigorous cumulative efforts of the Knoxville Police Department and its law enforcement and prosecutorial partners to address violent crime head on and make our community safer. By bringing addictive and deadly drugs into our area, these drug trafficking organizations are directly responsible for unimaginable tragedy and senseless violence that fragments families and destabilizes communities. In addition to our Organized Crime Unit investigators and various law enforcement partners, I want to specifically commend the U.S. Attorney’s Office for the Eastern District of Tennessee for their extraordinary work on this case,” said Eve Thomas, Chief, Knoxville Police Department.
Assistant United States Attorneys David P. Lewen, Jr. and Brent N. Jones represented the United States.
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 was also brought as part of Project Safe Neighborhoods (PSN), a comprehensive national program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. This program provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
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Kingsport Veterinarian Agrees to Pay $70,000 in Civil Penalties to Settle Alleged Violations of the Controlled Substance ActRead the Press Release
KNOXVILLE, Tenn. – On July 15, 2021, The Andes-Straley Veterinary Hospital in Kingsport, Tennessee, and its owner, Gary C. Andes, D.V.M., agreed to pay the United States $70,000 in civil penalties to resolve allegations that Dr. Andes and the hospital violated the Controlled Substances Act (“CSA”). The CSA was enacted to prevent the diversion or misuse of controlled substances by requiring persons and companies involved in the chain of distribution to maintain complete and accurate records relating to the controlled substances they receive, administer, and dispense.
According to the contentions of the United States contained in the settlement agreement, beginning in January 2019 investigators from the U.S. Drug Enforcement Administration (DEA), along with the Tennessee Bureau of Investigation (TBI) and Tennessee Department of Health (TNDOH), conducted an investigation into allegations that Dr. Andes and the hospital manager were failing to maintain effective controls and procedures to guard against diversion of controlled substances as required by law. The investigation included on-site inspections of records, and an accountability audit of controlled substance inventories and record-keeping processes at the hospital. Based on the findings of the investigation, the United States alleged that the hospital failed to maintain complete and accurate records of the controlled substances it received, failed to conduct proper inventories of controlled substances on hand, and failed to report to the DEA known thefts of controlled substances. The investigation also revealed significant shortages of various controlled substances received by the hospital. Today’s settlement resolves allegations that Dr. Andes and the hospital violated several provisions of the CSA from at least March 2017 through December 2018.
As part of the settlement, Dr. Andes and the hospital also entered into a Memorandum of Agreement with the DEA requiring that they take additional and ongoing measures to comply with the CSA, including implementing stringent inventory and record-keeping requirements, agreeing not to maintain supplies of certain controlled substances at the hospital, and agreeing to cooperate with future audits by the DEA to verify their compliance with the CSA.
This settlement resulted from a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Tennessee, the DEA, the TBI, and the TNDOH.
Assistant United States 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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