Eastern District of Tennessee
Press releases recorded for this federal judicial district.
Knoxville Woman Sentenced in Connection with Overdose DeathRead the Press Release
KNOXVILLE, Tenn.– On July 1, 2021, Katrina S. Carinci, 28, of Knoxville, TN, was sentenced to 125 months imprisonment by the Honorable Thomas A. Varlan, in the United States District Court for the Eastern District of Tennessee at Knoxville.
As part of the plea agreement filed with the Court, Katarina S. Carinci agreed to plead guilty to conspiracy to distribute and possess with intent to distribute 40 grams or more of a mixture and substance containing fentanyl, and a quantity of heroin, in violation of 21 U.S.C. §§ 846, 841(a)(1), and 841(b)(1)(B), as well as distribution of fentanyl, in violation of 21 U.S.C. § 841(a)(1) and 841(b)(1)(C). Yesterday, the defendant was sentenced to 125 months in prison, followed by five years of supervised release.
According to documents filed with the Court, between May 1, 2017, and September 2017, the defendant engaged in a conspiracy to distribute and possess with intent to distribute heroin and fentanyl for a drug trafficking organization operating within the Eastern District of Tennessee. The defendant obtained drugs from the leaders of the organization and distributed them to various customers in East Tennessee. On one specific occasion in August 2017, officers responded to an overdose death in Oak Ridge, TN. Prior to the death, the defendant had received drugs from her source and distributed drugs to a co-defendant, Samuel Hammond, who used the drugs with his friend. The friend later overdosed and died.
The criminal indictment was the result of an investigation by the Appalachian High Intensity Drug Trafficking Area’s Drug Related Death Task Force, which includes members of the Knoxville Police Department and the Drug Enforcement Administration. The Tennessee Bureau of Investigation, the Oak Ridge Police Department, and the Knox County Regional Forensics Center also assisted in this investigation.
Assistant United States Attorney Brent N. Jones represented the United States.
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Chattanooga Man Indicted for Sexual Exploitation of A ChildRead the Press Release
CHATTANOOGA, Tenn. – On June 16, 2021, a federal grand jury in Knoxville returned a one count indictment against Mark Alan Deakins, 61, of Chattanooga, for the sexual exploitation of a child. Deakins appeared in court June 22, 2021, before the Honorable U.S. Magistrate Judge Susan K. Lee and entered a plea of not guilty to the charge in the indictment. He was detained pending trial, which has been set for August 24, 2021 before the Honorable U.S. District Judge Charles E. Atchley, Jr.
The indictment alleges that Deakins sexually exploited a child under the age of 12 from June 2018 through September 2018, and that he has prior convictions for the sexual abuse of children.
If convicted, Deakins faces a mandatory minimum term of imprisonment of 35 years up to a maximum term of life in prison.
If you have information regarding the pending prosecution, or you believe you or someone you know may have been victimized by the defendant, the FBI requests that you contact them at 423-265-3601 or report it at tips.fbi.gov. Identified victims may be eligible for certain services and rights under federal and/or state law.
This indictment is the result of an investigation by the Chattanooga Crimes Against Children Task Force, and included the Federal Bureau of Investigation, the United States Marshals Service, Homeland Security Investigations, Chattanooga Police Department, Tennessee Highway Patrol, Hamilton County Sheriff’s Office, and Red Bank Police Department.
Assistant U.S. Attorney Steve Neff represents 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 click on the link for “Publications & Resources.”
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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Georgia Man Sentenced for Stealing Medical Treatment Using Veteran’s IdentityRead the Press Release
GREENEVILLE, Tenn. – On June 23, 2021, Kristopher M. Voyles, 31, of Georgia, was sentenced to 27 months in prison, followed by three years’ supervised release, by the Honorable Clifton L. Corker, in the United States District Court for the Eastern District of Tennessee at Greeneville.
As part of a negotiated plea agreement, Voyles pled guilty to theft of more than $1,000 of government property. Voyles will be required to make restitution of $20,502 to the Department of Veteran’s Affairs.
According to court records, Voyles is not a veteran and has never served in the United States military. On October 9, 2019, Voyles used the name, date of birth, and social security number of a United States veteran when receiving medical services at a hospital in Knoxville, Tennessee. The next day, while still impersonating the veteran, Voyles obtained a transfer to the VA Medical Center in Johnson City, Tennessee. Voyles used fraudulently obtained identification documents, and a fraudulently obtained Form DD214. For approximately a week, Voyles accepted medical goods, items, and services from the VA Medical Center. The value of the goods, items, and services Voyles stole was $20,502. When apprehended, Voyles still had the veteran’s identification documents with him, including the fraudulently obtained Form DD214.
Subsequent investigation revealed that Voyles had previously been prosecuted by Atlanta, Georgia authorities for using the same veteran’s identity to obtain prescription drugs from the VA Medical Center in Atlanta.
The criminal indictment was the result of an investigation by the Department of Veterans Affairs Police and the Department of Veterans Affairs Office of Inspector General ("VAOIG"). The federal investigation was led by Special Agent Charles Pack, VAOIG.
Assistant U.S. Attorney Mac Heavener represented the United States.
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Former Store Operator Sentenced for Being A Felon in Possession of Firearms and AmmunitionRead the Press Release
CHATTANOOGA, Tenn. – June 16, 2021, Clinton P. Wilborn, 47, was sentenced to 57 months imprisonment followed by three years of supervised release by the Honorable Curtis L. Collier in the United States District Court for the Eastern District of Tennessee at Chattanooga.
Wilborn earlier pleaded guilty to an indictment charging him with one count of being a felon in possession of a firearm and ammunition violation of 18 U.S.C. § 922(g)(1).
According to court records, in April 2019, investigators with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and Chattanooga Police Department Gun Team responded to Discount Depot located at 6308 Highway 58 in Chattanooga following reports that the store operator was a convicted felon and illegally selling firearms from the business. Following a search of the premises, investigators recovered a large amount of assorted ammunition, firearm magazines, and 14 firearms—including rifles, shotguns, and pistols—hidden in various locations on the property. One of the firearms was stolen. During an interview with an ATF Special Agent, Wilborn, the store operator, admitted to possessing the firearms and stated he knew it was illegal to possess firearms due to his status as a convicted felon.
"This successful prosecution is the direct result of collaboration between federal and local law enforcement, "said Acting United States Attorney Francis M. Hamilton III. "We value these relationships and look forward to continuing to work with our law enforcement partners to combat the illegal possession of firearms in the Eastern District of Tennessee."
“It is imperative to keep firearms out of the hands of convicted felons and to prevent the sale of illegal firearms. ATF will continue to work in conjunction with and support local law enforcement agencies to prosecute those individuals who illegally possess and sell firearms,” stated Terry M. Jones, Resident Agent in Charge of ATF Chattanooga Field Office.
Chattanooga Chief of Police David Roddy said, “the dedicated teamwork by Chattanooga Police Investigators and our partners with the ATF and United States Attorney's Office has resulted, yet again, in the successful removal of crime guns and a criminal in Chattanooga. By working together, these law enforcement professionals have taken guns out of circulation and prevented a Wilborn from furthering the spread of gun violence.”
Special Assistant United States Attorney Kevin Brown represented the United States. Brown is a Special Assistant City Attorney with the Chattanooga Police Department assigned to the United States Attorney’s Office to prosecute violations of federal firearm and drug laws.
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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Scott County Man Sentenced to 30 Years in Prison on Child Pornography ChargesRead the Press Release
KNOXVILLE, Tenn. - On May 28, 2021 Preston Andrew Watson, age 30, was sentenced to 30 years in prison for production and distribution of child pornography by the Honorable Katherine A. Crytzer in the United States District Court for the Eastern District of Tennessee at Knoxville. After Watson is released from prison, the United States Probation Office will supervise him for 20 years. Upon his release from prison Watson will also be required to register with the state sex offender registry in any state in which he lives, works, or attends school.
Watson had previously pled guilty to the charges. According to documents filed in the case, Watson duped, extorted, and threatened minors located in the United States and abroad to obtain child pornography from his victims. Watson met his victims on social media websites. He developed an online relationship with them and then requested that they send him sexually explicit images of themselves. Watson threatened to send sexually explicit images of the minors to social media websites if the victims refused to comply with his demands for more sexually explicit images.
The investigation was conducted by the Department of Homeland Security, Homeland Security Investigations, and the Knoxville Police Department’s Internet Crimes Against Children unit.
Assistant U.S. Attorney Jennifer Kolman represented the United States in court.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative 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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Medical Doctor Sentenced for Drug Trafficking and Health Care Fraud OffensesRead the Press Release
KNOXVILLE, Tenn. – On May 27, 2021, Michael LaPaglia, 49, was sentenced to 18 months imprisonment by the Honorable Katherine A. Crytzer in the United States District Court for the Eastern District of Tennessee at Knoxville. LaPaglia was also ordered to pay restitution to the health care providers who were victims in this case.
According to documents filed with the court, LaPaglia, a medical doctor, who previously lost his authorization to write prescriptions for controlled substances, had pleaded guilty to an information charging him with one count of conspiring to distribute controlled substances and one count of making a material false statement in connection with the delivery of health care benefits. The charges stem from LaPaglia’s involvement in a mobile Suboxone clinic through which LaPaglia issued prescriptions for Suboxone, Clonazepam, diazepam, and Pregabalin in the name of another doctor.
In the spring of 2018, in the Eastern District of Tennessee, investigators with Federal Bureau of Investigation ("FBI") and Department of Health and Human Services ("HHS") responded to a complaint that LaPaglia was issuing prescriptions for Suboxone without the authority to do so. Investigators learned that LaPaglia would meet patients at his home and in parking lots where, without any meaningful examination, LaPaglia would give the drug customers prescriptions (signed by another doctor) for controlled substances. Customers were charged $300 cash per monthly visit. The customers would then take their prescriptions to be filled at pharmacies, where a number of them used their health insurance to pay for the controlled substances.
"The public places great trust in our medical professionals, and our office is committed to safeguarding that trust through the vigorous enforcement of federal laws," said Acting United States Attorney Francis M. Hamilton III. "Doctors are supposed to help people, not hurt them, and those who abuse their position by illegally prescribing opioids will be prosecuted."
"Tennessee remains at the epicenter of the opioid crisis. Opioid abuse destroys lives, and it devastates families. It is extremely disappointing when caregivers allow greed and selfishness to violate their oath to help those in need. The FBI along with our federal, state, and local partners will continue to investigate and hold those accountable to face the consequences of their actions,” said Joseph E. Carrico, Special Agent-in-Charge of the Knoxville office of the Federal Bureau of Investigation.
"Protecting the health and safety of Medicare and Medicaid patients is our number one priority,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. "This provider’s reckless actions not only eluded his prescribing restrictions but endangered the health and safety of these patients."
The charges were the result of an investigation by FBI, HHS, and the Drug Enforcement Administration (DEA). This case was brought as part of the Opioid Fraud and Abuse initiative, a comprehensive national strategy that focuses on investigations and prosecutions of medical providers who prescribe opioids outside of the course of professional medical practice and for no legitimate purpose.
Assistant United States Attorneys Anne-Marie Svolto and David Lewen represented the United States.
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Midway Man Sentenced for Possession of AmmunitionRead the Press Release
Greeneville, Tenn. – On May 24. 2021, Justin Robert Feagins, 29, currently of Midway, Tennessee, was sentenced to 120 months by the Honorable Judge J. Ronnie Greer, Senior United States Judge for the Eastern District of Tennessee at Greeneville.
A Grand Jury issued an indictment for Feagins in July of 2019 for the offense of being a felon in possession of ammunition. Feagins entered a guilty plea in September of 2020 to the single-count indictment.
On September 25, 2018, Rogersville Police responded to local hotel for a report of a person wounded by a gunshot. They arrived to find the victim suffering from a gunshot wound to the abdomen. During the course of the investigation, Rogersville Police located security footage of the shooting. The video showed Feagins shooting the victim and leaving the scene with the firearm. A spent .380 caliber cartridge case, which was consistent with the bullet recovered from the victim, was located at the scene.
Acting U.S. Attorney Trey Hamilton of the Eastern District of Tennessee made the announcement.
The criminal indictment was the result of an investigation by the Rogersville Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. This investigation was led by ATF Special Agent Cameron Miller.
Assistant United States Attorney B. Todd Martin represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun 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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Madisonville Man Sentenced for 50 Years in Prison for Production of Child PornographyRead the Press Release
KNOXVILLE, Tenn. – On May 24, 2021, Terry Lee Gilbreath, age 52, was sentenced by the Honorable Judge Thomas A. Varlan, United States District Judge, to serve 50 years in prison for producing child pornography.
In February 2020, a federal jury convicted Gilbreath of two counts of production of child pornography. The evidence presented at trial established that on two separate occasions in 2015 the defendant video recorded and photographed his sexual molestation of an eight-year-old child. Following his imprisonment, Gilbreath will be supervised by the United States Probation Office for the rest of his life and will be required to register with the state sex offender registry in any state in which he lives, works, or attends school.
Acting U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee made the announcement.
The case was jointly investigated by Department of Homeland Security, Homeland Security Investigations; the Knoxville Police Department, Internet Crimes Against Children Unit; the City of Madisonville Police Department; and the Monroe County Sheriff’s office.
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, visit www.justice.gov/psc/resources.html and click on the tab “resources.”
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Former Washington County Assistant District Attorney Pleads Guilty to Trading Sex for Dismissal of ChargesRead the Press Release
GREENEVILLE, Tenn. – On May 25, 2021, William E. McManus, Jr., age 50, pleaded guilty before the Honorable J. Ronnie Greer, Senior United States District Judge, to soliciting a bribe in December 2018 in exchange for dismissal and expungement of criminal charges. Sentencing is set for November 15, 2021, at 10:30 a.m., before the Honorable J. Ronnie Greer in the United States District Court for the Eastern District of Tennessee at Greeneville.
As part of the filed plea agreement, McManus admitted that, while acting in his capacity as an Assistant District Attorney for the First Judicial District, he dismissed and expunged shoplifting and possession of methamphetamine charges pending in the Sessions Court of Washington County, Tennessee, in exchange for a commercial sex act with someone with whom he had previously engaged in commercial sex acts. The maximum punishment for the offense is a term of imprisonment of up to ten years and a fine of up to $250,000.
Acting U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee made the announcement.
The case was jointly investigated by the Federal Bureau of Investigation, investigators of the First Judicial District Attorney General’s Office, and the Johnson City Police Department. The prosecution was coordinated with the Sixth Judicial District Attorney’s Office, which was appointed to be a special state prosecutor for this investigation.
Assistant United States Attorney Matthew T. Morris represented the United States in Court.
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Chattanooga Man Charged with Defrauding Investor in Covid-19-Related PPE SchemeRead the Press Release
On May 24, 2021, David Michael Wright, Sr., 58, of Hixson pleaded guilty to a two-count information charging him with wire fraud and money laundering. Sentencing has been set for October 1, 2021, at 9:00 a.m., before the Honorable Travis R. McDonough in the United States District Court for the Eastern District of Tennessee at Chattanooga. Upon motion of the United States, the Honorable Susan K. Lee, United States Magistrate Judge, ordered that Wright be detained pending sentencing.
According to court documents filed by the United States, from April to September 2020, Wright devised a scheme to defraud and obtain money under fraudulent pretenses from at least one victim. Wright and the victim began discussing investment opportunities involving the purchase and resale of Personal Protective Equipment (PPE) to hospitals and retailers in response to the COVID-19 pandemic. Wright falsely claimed that he had contacts with Chinese manufacturers to source the manufacture of PPE products, that Wright was importing PPE products from China, and that Wright was then selling those products in the United States at a significant profit, including KN95 masks. In July 2020, Wright emailed the victim with an attached fraudulent $49,700.00 pro forma invoice from an alleged Chinese manufacturer for the purported purchase of 70,000 KN95 masks, which Wright falsely claimed could be purchased by the victim and then resold to CHI Memorial Hospital for $210,000.00, resulting in a profit of $140,000.00 for the victim. Several days later, the victim paid Wright $49,700.00 cash, for the purchase of KN95 masks, and Wright provided the victim with a fraudulent DHL tracking number for the "shipment" from China. In August 2020, Wright gave the victim a check for $210,000.00 representing the victim’s proceeds from the sale of the KN95 masks to CHI Memorial Hospital. However, Wright knew he did not have sufficient funds to cover that check, as CHI Memorial Hospital had made no agreement to purchase PPE from Wright, nor had they paid any money to Wright. Wright also learned that the victim had a connection with a hand sanitizer manufacturer, Miramar Labs. Wright fraudulently represented that Publix Super Markets, Inc. (Publix) was going to purchase 40,000 bottles of hand sanitizer, and, to maintain that deception, Wright wired some of the money obtained from the fraudulent KN95 scheme to Miramar Labs, while the victim paid the remaining amount. In total, Wright obtained approximately $80,500.00 as part of his fraudulent scheme.
Wright, Sr. faces a possible sentence of up to 30 years’ imprisonment on the wire fraud count and up to 10 years’ imprisonment on the money laundering count, along with significant fines, restitution, and forfeiture of property.
Assistant United States Attorney Steven Neff represents the United States.
The investigation was conducted by the FBI 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.
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Knoxville Man Arrested for Federal Firearms ViolationRead the Press Release
KNOXVILLE, Tenn. – On May 14, 2021, Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Tennessee Bureau of Investigation (TBI) arrested Kelvon Foster, 21, of Knoxville, TN, on a federal criminal complaint 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.” The complaint was issued by the Honorable H. Bruce Guyton, United States Magistrate Judge for the Eastern District of Tennessee. Foster later appeared before Judge Guyton, entered a not-guilty plea, and was released on conditions of supervision. If convicted, Foster could face imprisonment of up to 10 years and other penalties.
According to documents filed with the court, the firearm at issue was recovered by law enforcement in connection with the officer-involved shooting at Austin-East Magnet High School on April 12, 2021.
Acting U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee, and Resident Agent in Charge Keith Jordan of the ATF’s Knoxville Field Office made the announcement.
This prosecution is the result of an ongoing 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.
Members of the public are reminded that the charges in the criminal complaint are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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U.S. Attorney's Office for the Eastern District of Tennessee Recognizes Police WeekRead the Press Release
KNOXVILLE, Tenn. In honor of National Police Week, Acting United States Attorney Francis M. Hamilton III recognizes the service and sacrifice of federal, state, local, and Tribal law enforcement. This year, the week is observed Sunday, May 9 through Saturday, May 15, 2021.
"This week is a time to honor our law enforcement officers who have made the ultimate sacrifice in service to our nation," said Attorney General Garland. "I am constantly inspired by the extraordinary courage and dedication with which members of law enforcement act each day, putting their lives on the line to make our communities safer. To members of law enforcement and your families: we know that not a single day, nor a single week, is enough to recognize your service and sacrifice. On behalf of the entire Department of Justice, you have our unwavering support and eternal gratitude."
"In honor of National Police Week, the U.S. Attorney’s Office for the Eastern District of Tennessee remembers the service, dedication, and commitment of our federal, state, and local law enforcement partners. Today our office expresses its deepest gratitude and pays tribute to those who serve, and to those who made the ultimate sacrifice in the line of duty," said Acting United States Attorney Francis M. Hamilton III.
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.
Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty, and commitment to keeping our communities safe. This year the COVID-19 pandemic has highlighted law enforcement officers’ courage and unwavering devotion to the communities that they have sworn to serve.
During the Roll Call of Heroes, a ceremony coordinated by the Fraternal Order of Police (FOP), more than 300 officers will be honored. Based on data submitted to and analyzed by the
National Law Enforcement Officer Memorial Fund (NLEOMF), of the law enforcement officers who died nationwide in the line of duty in 2020, nearly 60 percent succumbed to COVID-19.
Additionally, according to statistics reported by the Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 46 law enforcement officers died as a result of felonious acts and 47 died in accidents in 2020. LEOKA statistics can be found on FBI’s Crime Data Explorer website.
The names of the 394 fallen officers who have been added in 2020 to the wall at the National Law Enforcement Officer Memorial will be read on Thursday, May 13, 2021, during a Virtual Candlelight Vigil, which will be livestreamed to the public at 8:00 PM EDT. The Police Week in-person public events, originally scheduled for May, have been rescheduled due to ongoing COVID-19 concerns to October 13-17, 2021. An in-person Candlelight Vigil event is scheduled for October 14, 2021.
Those who wish to view the Virtual Candlelight Vigil on May 13, 2021, can watch on the NLEOMF YouTube channel found at https://www.youtube.com/user/TheNLEOMF. The FOP’s Roll Call of Heroes can be viewed at www.fop.net.
To learn more about National Police Week in-person events scheduled for October, please visit, www.policeweek.org.
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Twin Brothers Sentenced for Major Fraud Against the GovernmentRead the Press Release
CHATTANOOGA, Tenn. –Today, Rahim and Karim Sadruddin, 35, were sentenced to 50 months imprisonment by the Honorable Travis McDonough, United States District Judge for the Eastern District of Tennessee at Chattanooga.
As part of the plea agreement filed with the court, the Sadruddins each agreed to plead guilty to an Information charging them with two counts of wire fraud involving a Presidentially declared major disaster and emergency in violation of Title 18, United States Code, Section 1343, and one count of conspiracy to commit money laundering in violation of Title 18, United States Code, Sections 1956(h) and 1957. The Sadruddins were charged as part of a scheme greater than $30 million to defraud the Federal Emergency Management Agency (“FEMA”), Tennessee Valley Authority (“TVA”), and the state of Tennessee related to the procurement of tarps for hurricane victims in Puerto Rico, and the fraudulent acquisition of state and federal grant funds for the purpose of establishing a textile manufacturing plant in Pikeville.
Judge McDonough sentenced each defendant to 50 months of imprisonment, followed by five years of supervised release, and $300 in special assessments. Moreover, as part of their guilty pleas and plea agreements with the United States, the defendants will forfeit numerous items, including houses, a vehicle, bank accounts, and other items of personal property that were obtained with proceeds of the fraud; they will also be required to pay full restitution in the amount of over $7 million to the State of Tennessee, TVA, and FEMA.
From April 2017 through January 2019, the Sadruddins devised and participated in a scheme first to defraud the state of Tennessee and TVA by providing false information to win a bid for over $3 million worth of grants to build a textile manufacturing plant and provide jobs to the citizens of Pikeville in Bledsoe County. Once they began to wrongfully receive the Tennessee and TVA grant funds, they used the money to buy tarps in order to satisfy a separate $30 million contract with FEMA, in which they pledged to provide tarps to citizens in Puerto Rico following the devastating hurricanes in that region – Hurricane Maria and Hurricane Irma. As part of the contract, the defendants pledged to obtain tarps from Trade Agreements Act (TAA)-compliant countries and to provide tarps that met FEMA specifications. Instead, the defendants used the funds fraudulently obtained from the state of Tennessee and TVA to purchase tarps from China – a non-TAA-compliant country – that did not meet the contract specifications. The defendant’s falsified records suggesting they had legally procured the tarps and that the tarps met the agreed-upon specifications. Subsequent inspection of the tarps and documentation the defendants provided revealed the existence of the fraud and the non-compliance with the specifications of the contract. Once the fraud was uncovered, FEMA was forced to halt performance of the contract, and only a fraction of the tarps intended for the hurricane victims reached Puerto Rico.
The sentencing was announced by Acting United States Attorney for the Eastern District of Tennessee Francis M. Hamilton III.
“These defendants defrauded federal agencies and the citizens of Tennessee. Their duplicity deprived the victims of the hurricanes in Puerto Rico necessary equipment. The sentences imposed today reflect the seriousness of their crimes and our office’s commitment to prosecute those engaged in major fraud offenses,” said Acting United States Attorney Francis M. Hamilton III.
“Today's sentencing announcement is significant and highlights the FBI's collaboration with our partner agencies as we hold these defendants accountable for knowingly and wittingly creating a fraudulent and deceptive scheme against the citizens of Tennessee. We remain committed to aggressively pursue those whose intent is to victimize the very ones they proclaim they want to help,” said Special Agent in Charge, Joe Carrico of the FBI field Office.
“TVA strives to better the lives of the people of the Tennessee Valley through many means, including economic development grants aimed at bringing investment and good jobs to the region. The TVA OIG would like to thank the United States Attorney’s Office, specifically Assistant U.S. Attorney Steve Neff, Tennessee Comptroller’s Office, Tennessee Bureau of Investigation, Federal Bureau of Investigation, and Department of Homeland Security OIG for working hand in hand with our office to investigate this fraudulent activity. Federal and State partners have a direct stake in ensuring that neither taxpayer nor Valley ratepayer funds are used for fraudulent purposes, and we are pleased that those who would defraud TVA and the people of the Tennessee Valley will see that such a choice comes with consequences,” said Jill Matthews, Deputy Inspector General Performing the Duties of the Inspector General of the TVA’s Office of the Inspector General (OIG).
“DHS OIG remains committed to working with our law enforcement partners to identify and investigate individuals who scheme to defraud disaster victims. Today’s sentencing sends a clear message that Federal funds intended to help those victims will not fall into the hands of greed-driven criminals,” said Joseph V. Cuffari, Inspector General for the Department of Homeland Security.
The United States Attorney’s Office for the Eastern District of Tennessee partnered with many other federal, state, and local law enforcement and administrative agencies to conduct the investigation in this case. The agencies involved included the Department of Homeland Security Office of Inspector General (DHS OIG), Federal Bureau of Investigation (FBI), Tennessee Valley Authority Office of Inspector General (TVA OIG), Tennessee Bureau of Investigation (TBI), Tennessee State Comptroller’s Office, and the 12th Judicial District Attorney’s Office.
Assistant United States Attorneys Steven S. Neff and Gretchen Mohr represented the United States.
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Knoxville Man Pleads Guilty to Aggravated Identity TheftRead the Press Release
KNOXVILLE, Tenn. – On May 6, 2021, Dios E. Tate, 31, currently of Knoxville, entered a guilty plea to one count of aggravated identity theft in the United States District Court for the Eastern District of Tennessee at Knoxville. Sentencing is scheduled for September 9, 2021, at 10:00 a.m., before the Honorable Thomas A. Varlan, United States District Judge.
Tate faces a mandatory term of two years in Federal prison, as well as a fine of up to $250,000, and supervised release of one year.
As part of the written plea agreement, 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 issued in a name other than his own.
This prosecution is the result of an ongoing operation by the Tennessee Highway Patrol, the Federal Bureau of Investigation, and the Social Security Administration – Office of Inspector General to identify people who have unlawfully used social security numbers of other persons to obtain a false Tennessee identification cards.
Assistant United States Attorney TJ Harker represented the United States.
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Knoxville Man Arraigned in Federal Court for Multiple Hobbs Act Robberies and CarjackingRead the Press Release
KNOXVILLE, Tenn. – On April 22, 2021, DeShawn Whited, 23, of Knoxville, was arraigned before the Honorable Judge Debra C. Poplin, United States Magistrate Judge, in the Eastern District of Tennessee, for six counts of Hobbs Act Robbery, one count of carjacking, seven counts of brandishing a firearm in furtherance of a crime of violence, and one count of felon in possession of a firearm. Whited was indicted by a federal grand jury on March 17, 2021. Trial has been set for June 29, 2021, before the Honorable Judge Katherin Crytzer, United States District Judge, in the Eastern District of Tennessee.
The indictment alleges that, between December 2, 2020 and January 20, 2021, Whited robbed convenience stores and restaurants across Knoxville. The indictment also alleges that on January 20, 2021, Whited committed a carjacking when he stole a motorist’s car. The indictment alleges that Whited committed these crimes by brandishing a gun and threatening his victims.
If convicted for the Hobbs Act Robberies, the defendant faces up to 20 years imprisonment, a fine of up to $250,000, a term of supervised release of up to three years, any applicable forfeiture, and a $100 special assessment for each count of robbery. If convicted of the carjacking, the defendants faces up to 15 years of imprisonment, a fine of up to $250,000, three years of supervised release, and $100 special assessment. If convicted of brandishing a firearm in furtherance of a crime of violence, the defendant faces a mandatory minimum term of imprisonment of seven years up to life, which must be served consecutively to any term of imprisonment imposed for each count of brandishing a firearm. If convicted of felon in possession of a firearm, the defendant faces up to 10 years of imprisonment, a fine of up to $250,000, three years of supervised release, and $100 special assessment.
The arrangement was announced by Acting United States Attorney for the Eastern District of Tennessee Francis M. Hamilton III.
The investigation was led by the Federal Bureau of Investigation, Knoxville Division, the Knoxville Police Department, and the Knox County Sheriff’s Office.
Assistant United States Attorney Alan S. Kirk will represent 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.
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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DEA Prepares for Prescription Drug Take Back DayRead the Press Release
KNOXVILLE, Tenn. On Saturday, April 24, 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. These sites cannot accept liquids, needles, or sharps, only pills or patches, and this service is free and anonymous, no questions asked.
This April’s event is DEA’s 20th nationwide event since its inception 11 years ago. Last fall, Americans turned in nearly 883,000 pounds of prescription drugs at nearly 6,200 sites operated by the DEA and almost 5,000 from its state and local law enforcement partners. DEA and its partners have collected nearly 6,350 tons of expired, unused, and unwanted prescription medications since the inception of the National Prescription Drug Take Back Initiative in 2010.
To keep everyone safe, collection sites will follow CDC and regulations.
This initiative addresses a 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. In the United States, 85,500 people died of a drug overdose in just one year (August 2019-August 2020). This is the largest number of drug overdoses on record in the United States within a one-year period and a 27 percent increase in deaths year over year. Synthetic opioids, such as illicit fentanyl, are the primary drier of the increase in overdose deaths.
In addition to DEA’s National Prescription Drug Take Back Day, there are many other ways to dispose of unwanted prescription drugs every day, including the 11,000 authorized collectors that are available all year long. For more information, visit DEA’s year-round collection site locator. Participating in the next DEA Take Back Day on Saturday, April 24, 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. You can learn more about the event and find a collection site at: [email protected], or call 800-882-9539.
The FDA also provides information on how to properly dispose of prescription drugs. More information is available here: https://www.fda.gov/consumers/consumer-updates/where-and-how-dispose-unused-medicines.
For more information about the disposal of prescription drugs or about the April 24 Take Back day event, go to DEA Drug Take Back event.
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Bristol Realtor Sentenced to 10 Years for Ponzi SchemeRead the Press Release
GREENEVILLE, Tenn. – On April 23, 2021, Tammy Lynn Hawk, 47, of Bristol, was sentenced by the Honorable Clifton L. Corker, in the United States District Court for the Eastern District of Tennessee at Greeneville.
As part of a negotiated plea agreement, Hawk pled guilty to an information in January 2021. The information charged Hawk with one count each of wire fraud, aggravated identity theft, money laundering, and making a false tax return. Hawk was sentenced to 10 years in prison, followed by three years’ supervised release. Hawk will be required to make restitution of $658,838 to her unpaid victims and $71,062 in unpaid taxes to the United States.
According to court records, Hawk was a well-established real estate agent in the Bristol, Tennessee area. Despite the success she enjoyed as a realtor, she ultimately used her knowledge, skills, and clientele to devise and operate a Ponzi-type scheme. Under her scheme, she would notify victim clients of large profits to be made with quick-flip properties, take cash from the victims, and ultimately repay earlier victims with funds she swindled from newer victims. Hawk defrauded at least 24 victims and, by the time her scheme was discovered, 12 victims remained unpaid and had lost over $500,000.
Hawk took extensive steps to hide and conceal her scheme as well, including false statements, sham real estate contracts, the use of electronic signing services, and forgery. Hawk also failed to disclose any of these matters in connection with a filed bankruptcy case. In addition to repaying earlier victims with funds she swindled, Hawk used proceeds from her offenses to fund her own lifestyle.
“Tammy Hawk’s fraudulent scheme not only betrayed her clients’ trust, but also caused them devastating financial harm,” said Acting United States Attorney Francis M. Hamilton III. “The Court’s sentence demonstrates that there will be serious consequences to criminals who perpetrate this brand of Ponzi scheme. This office values the collaboration among the numerous law enforcement agencies that supported this prosecution.”
“The Secret Service is proud to partner with the Bristol Police Department. The overwhelming success of this investigation is a testament to our belief that building strong, trusted partnerships across the law enforcement community is a proven model for success,” said Resident Agent in Charge Jason Brown, Secret Service - Knoxville Resident Office. “The Secret Service is committed to combatting financial crime, especially in cases where fraudsters take advantage of the trust and confidence of American citizens. The Secret Service, along with our local and federal partners, remain committed to aggressively protecting the nation from criminal opportunists who choose to exploit the American public.”
“This corruption ploy -- which destroyed the lives of many hard-working individuals -- ended today. This plea is the result of collaboration between the Sullivan County District Attorney’s Office and the U.S. Attorney’s Office,” said Second Judicial District Attorney Barry P. Staubus.
“The joint collaboration between these law enforcement agencies in a complex case such as this, is what ensures accountability is brought to Tammy Hawk for victimizing those who trusted her,” said Bristol Police Chief Blaine Wade.
The sentence was announced by Acting United States Attorney for the Eastern District of Tennessee Francis M. Hamilton III.
The criminal indictment was the result of an investigation by the Bristol Police Department, the Second District Attorney General’s Office for Sullivan County, the United States Secret Service, and IRS Criminal Investigations. The federal investigation was co-led by United States Secret Service Senior Special Agent Thomas Whitehead and IRS CI Special Agents Nicholas Worsham and Michael Whitesell.
Assistant U.S. Attorneys Mac Heavener and Todd Martin represented the United States.
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Steven A. Humphries Sentenced to Life in Prison for Producing and Possessing Child PornographyRead the Press Release
KNOXVILLE, Tenn. – On April 21, 2021, Steven A. Humphries, age 51, currently of Knoxville, Tennessee, was sentenced by the Honorable Thomas A. Varlan, United States District Judge for the Eastern District of Tennessee, to life imprisonment for producing and possessing child pornography.
Humphries pleaded guilty to an indictment charging him with one count of production of child pornography in violation of 18 U.S.C. § 2251(a) and (e) and one count of possession of child pornography in violation of 18 U.S.C. 2252A(a)(5)(B). Humphries had previously been convicted of sexual offenses against minors and was on state parole and registered as a sex offender at the time of the offenses.
On October 21, 2018, law enforcement officers searched Humphries’ home and found a large cache of child pornography, including depictions of the defendant molesting a prepubescent minor. Humphries had been hiding his child pornography in a waterproof container in the pond behind his home.
“The United States is committed to vigorously investigating and prosecuting child sex predators,” stated Acting U.S. Attorney Francis M. Hamilton III. “This prosecution and sentence demonstrate that registered sex offenders will be prosecuted to the fullest extent of the law if they reoffend.”
The Federal Bureau of Investigation investigated this case.
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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Ph.D. Chemist Convicted of Conspiracy to Steal Trade Secrets, Economic Espionage, Theft of Trade Secrets and Wire FraudRead the Press Release
WASHINGTON – A federal jury in Greeneville, Tennessee, convicted a U.S. citizen today of conspiracy to steal trade secrets, economic espionage and wire fraud.
Following a twelve-day trial, Dr. Xiaorong You, aka Shannon You, 59, of Lansing, Michigan, was convicted of conspiracy to commit trade secret theft, conspiracy to commit economic espionage, possession of stolen trade secrets, economic espionage, and wire fraud. You was originally indicted in February 2019 for trade secret offenses and wire fraud, and was charged in a superseding indictment with economic espionage and conspiracy to commit economic espionage in August 2020.
According to court documents and evidence presented at trial, You stole valuable trade secrets related to formulations for bisphenol-A-free (BPA-free) coatings for the inside of beverage cans. You was granted access to the trade secrets while working at The Coca-Cola Company in Atlanta, Georgia, and Eastman Chemical Company in Kingsport, Tennessee. The stolen trade secrets belonged to major chemical and coating companies including Akzo-Nobel, BASF, Dow Chemical, PPG, Toyochem, Sherwin Williams, and Eastman Chemical Company, and cost nearly $120,000,000 to develop.
According to court documents and evidence presented at trial, You stole the trade secrets to set up a new BPA-free coating company in China. You and her Chinese corporate partner, Weihai Jinhong Group, received millions of dollars in Chinese government grants to support the new company (including a Thousand Talents Plan award). Documents related to You’s Thousand Talents Program application were admitted at trial; those documents, and other evidence presented at trial, showed the defendant’s intent to benefit not only Weihai Jinhong Group, but also the governments of China, the Chinese province of Shandong, and the Chinese city of Weihai, as well as her intent to benefit the Chinese Communist Party.
Until recently, BPA was used to coat the inside of cans and other food and beverage containers to help minimize flavor loss and prevent the container from corroding or reacting with the food or beverage contained therein. However, due to BPA’s potential health risks, companies began searching for BPA-free alternatives. As witnesses from the chemical and coating companies testified at trial, developing these BPA-free alternatives was a very expensive and time-consuming process.
From December 2012 through Aug. 31, 2017, You was employed as Principal Engineer for Global Research at Coca-Cola, which had agreements with numerous companies to conduct research and development, testing, analysis and review of various BPA-free technologies. Because of You’s extensive education and experience with BPA and BPA-free coating technologies, she was one of a limited number of Coca-Cola employees with access to BPA-free trade secrets belonging to Akzo-Nobel, BASF, Dow Chemical, PPG, Toyochem, and Sherwin Williams. From approximately September 2017 through June 2018, You was employed as a packaging application development manager for Eastman Chemical Company in Kingsport, Tennessee, where she was one of a limited number of employees with access to trade secrets belonging to Eastman.
You is scheduled to be sentenced on Nov. 1 at 10:30 a.m.
Assistant Attorney General John C. Demers of the National Security Division; Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; and Acting U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee made the announcement.
The FBI’s Knoxville Field Office and Department of Homeland Security’s Homeland Security Investigation (HSI) investigated the case.
Assistant U.S. Attorney T.J. Harker of the Eastern District of Tennessee; Senior Counsel Matt Walczewski of the Criminal Division’s Computer Crime and Intellectual Property Section; and Trial Attorney Nic Hunter of the National Security Division’s Counterintelligence and Export Control Section and are prosecuting the case. April Denard and Bryan Brandenburg of the U.S. Attorney’s Office for the Eastern District of Tennessee provided technical assistance at trial.
Ph.D. Chemist Convicted of Conspiracy to Commit Economic Espionage, Theft of Trade Secrets, and Wire FraudRead the Press Release
GREENEVILLE, Tenn. Following a twelve-day trial, Dr. Xiaorong You, a/k/a Shannon You, 59, of Lansing, Michigan, was convicted of conspiracy to commit economic espionage, conspiracy to steal trade secrets, possession of stolen trade secrets, economic espionage, and wire fraud. Dr. You was originally indicted in February 2019 for trade secret offenses and wire fraud, and a superseding indictment adding economic espionage and conspiracy to commit economic espionage issued in August 2020. Sentencing has been set for November 1, 2021 at 10:30 a.m., 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, Dr. You stole valuable trade secrets related to formulations for bisphenol-A-free (BPA-free) coatings for the inside of beverage cans. Evidence introduced at trial proved that Dr. You stole these trade secrets for the purpose of establishing a global can-coating manufacturer in China with a Chinese chemical company called the Weihai Jinhong Group. Dr. You’s plan was designed to benefit the Chinese Communist Party, the Chinese government, the government of the Shandong Province, and the government of the City of Weihai – a city of 2.5 million people on the Northeast Coast of China – by advancing the Made in China 2025 Initiative and the 13th Five-Year Plan.
Dr. You was granted access to the trade secrets while working at the Coca-Cola company in Atlanta, Georgia, and Eastman Chemical company in Kingsport, Tennessee. The stolen trade secrets belonged to major chemical and coating companies including Akzo-Nobel, BASF, Dow Chemical, PPG, Toyochem, Sherwin Williams, and Eastman Chemical company, and cost nearly $120,000,000 to develop.
According to court documents and evidence presented at trial, Dr. You stole the trade secrets to set up a new BPA-free coating company in China. Dr. You and her Chinese corporate partner, Weihai Jinhong Group, received millions of dollars in Chinese government grants to support the new company (including a Thousand Talents Plan award). Documents related to Dr. You’s Thousand Talents Program application were admitted at trial; those documents, and other evidence presented at trial, showed the defendant’s intent to benefit not only Weihai Jinhong Group, but also the governments of China, the Chinese province of Shandong, and the Chinese city of Weihai, as well as her intent to benefit the Chinese Communist Party.
Until recently, bisphenol-A (BPA) was used to coat the inside of cans and other food and beverage containers to help minimize flavor loss and prevent the container from corroding or reacting with the food or beverage contained therein. However, due to BPA’s potential health risks, companies began searching for BPA-free alternatives. As witnesses from the chemical and coating companies testified at trial, developing these BPA-free alternatives was a very expensive and time-consuming process.
From December 2012 through Aug. 31, 2017, Dr. You was employed as Principal Engineer for Global Research at Coca-Cola, which had agreements with numerous companies to conduct research and development, testing, analysis and review of various BPA-free technologies. Because of Dr. You’s extensive education and experience with BPA and BPA-free coating technologies, she was one of a limited number of Coca-Cola employees with access to BPA-free trade secrets belonging to Akzo-Nobel, BASF, Dow Chemical, PPG, Toyochem, and Sherwin Williams. From approximately September 2017 through June 2018, Dr. You was employed as a packaging application development manager for Eastman Chemical company in Kingsport, Tennessee, where she was one of a limited number of employees with access to trade secrets belonging to Eastman.
Assistant Attorney General John C. Demers of the National Security Division; Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; and Acting U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee made the announcement.
The FBI’s Knoxville Field Office and Department of Homeland Security’s Homeland Security Investigation (HSI) investigated the case investigated the case.
Assistant U.S. Attorney T.J. Harker of the Eastern District of Tennessee; Senior Counsel Matt Walczewski of the Criminal Division’s Computer Crime and Intellectual Property Section; and Trial Attorney Nic Hunter of the National Security Division’s Counterintelligence and Export Control Section and are prosecuting the case. April Denard and Bryan Brandenburg of the U.S. Attorney’s Office for the Eastern District of Tennessee provided technical assistance at trial.
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Day & Zimmermann NPS, Inc. Pays $200,000 to Resolve Alleged Violations of False Claims Act Arising from TVA ContractRead the Press Release
KNOXVILLE, Tenn. –Day & Zimmermann NPS, Inc. (“D&Z”), a privately owned company specializing in construction and maintenance services, has paid $200,000 to resolve allegations that it submitted false claims to the Tennessee Valley Authority (“TVA”) for services performed in connection with capital improvement projects at the Watts Bar Nuclear Power Plant.
In 2013 and 2014, TVA, in response to the 2011 Fukushima Daiichi nuclear disaster and the U.S. Nuclear Regulatory Commission’s follow-on safety mandates, amended its existing $700 million contract with D&Z by an additional $550 million, in part to fund improvements designed to enhance safeguards against nuclear meltdowns. One such improvement was to build an elevated “Flex” building (“the Flex Project”), designed to provide backup operating controls in the event of an earthquake, flood, tornado, hurricane, or other extreme event.
The settlement resolves allegations that, during the period January 1, 2014 through May 5, 2014, D&Z knowingly shifted costs from various project codes that fell outside the scope of the Flex Project and improperly charged those costs against the Flex Project by falsely using Flex Project codes. The United States also alleged that D&Z failed to correct mischarges that it knew or should have known were incorrectly applied and which resulted in false claims for payment, as well as overpayments that were not returned to TVA.
“The United States relies on the companies with which it contracts to accurately represent their charges to the government, and government contractors have a duty to refund any overpayments they receive. Our office will continue to pursue contractors who violate those duties and put at risk the fiscal integrity of government programs designed to ensure the safe operation of sensitive public energy facilities,” said Acting United States Attorney Francis M. Hamilton III.
“The TVA OIG is committed to identifying and investigating false claims and overpayments that negatively impact the ratepayers throughout the Tennessee Valley,” said Jill Matthews, Deputy Inspector General Performing the Duties of the Inspector General. “The TVA OIG would like to thank the United States Attorney’s Office, specifically Assistant U.S. Attorney Jeremy Dykes and Assistant U.S. Attorney Jessica Sievert for diligently pursing resolution of this complex case and ensuring funds were properly returned to TVA.”
The settlement agreement was announced today by Acting United States Attorney for the Eastern District of Tennessee Francis M. Hamilton III and Jill Matthews, Deputy Inspector General Performing the Duties of the Inspector General for TVA. Senior Special Agent Greg Schultz of TVA-Office of the Inspector General investigated this matter, and Assistant U.S. Attorneys Jessica Sievert and Jeremy Dykes represented the United States.
This investigation resulted from a coordinated effort between the TVA-Office of Inspector General and the U.S. Attorneys’ Office of the Eastern District of Tennessee.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
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Federal Jury Convicts Former Roane County Defense AttorneyRead the Press Release
KNOXVILLE, Tenn. – On April 19, 2021, a federal jury convicted Kent Lowery Booher, 64, of Harriman, Tennessee, a registered sex offender, of multiple sex crimes involving minors. Booher, a disbarred criminal defense attorney, was found guilty of enticing and attempting the enticement of a minor for sex, committing a sex crime with a minor while being a registered sex offender, sex trafficking of a child, and attempted production of child pornography. As a result of the convictions, the defendant faces a prison sentence of 25 years to life. Sentencing is scheduled for August 18, 2021, before the Honorable Thomas A. Varlan, United States District Judge.
The investigation began when an undercover investigation revealed that Booher, a convicted sex offender, began communicating on Facebook with an individual he believed to be a 14- year-old girl. Over a period of five days, Booher used Facebook, text messaging, and telephone calls to attempt to entice the individual to engage in sexual activity. On March 8, 2019, Booher was arrested by the 9th Judicial District Attorney’s Office and the Harriman Police Department while on the way to meet with a minor child.
Based upon the undercover investigation, a federal grand jury initially indicted Booher on federal charges of attempted enticement of a minor for sex and committing the enticement offense while required to register as a sex offender. Two months later, following additional investigation, the grand jury added three charges pertaining to Booher’s sexual exploitation of a 15-year-old child in 2012 and 2013.
The lead agency in this investigation was the 9th Judicial District Attorney’s Office. The Knoxville Police Department, Internet Crimes Against Children Task Force, Homeland Security Investigations, Lenoir City Police Department, Loudon County Sheriff’s Office, Harriman Police Department, Blount County Sheriff’s Department, Tennessee Department of Corrections, and U.S. Secret Service, assisted with the investigation.
Assistant U.S. Attorneys Jennifer Kolman and Frank M. Dale, Jr. represented the United States at trial.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about PSC, please visit www.projectsafechildhood.gov.
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William Ellis Sentenced to 10 Years for Enticement of A Minor to Engage in Sexual ActivityRead the Press Release
GREENEVILLE, Tenn. – On April 15, 2021, William Charles Ellis, 51, currently of Jonesborough, Tennessee, was sentenced 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, Ellis agreed to plead guilty to enticement of a minor to engage in sexual activity, in violation of 18 U.S.C. § 2422(b). Ellis was sentenced to 120 months in prison, followed by 15 years of supervised release. Ellis will be required to register with state sex offender registries and comply with special sex offender conditions during his supervised release.
In August 2019, Ellis used an online dating application to communicate with a person that he believed to be a 15-year-old minor female. The “minor female” was an FBI agent working an online covert investigation. Ellis sent sexually explicit photos to the minor female and requested that she send sexually explicit photos and videos to him. The FBI identified the defendant, obtained a search warrant for his cellular phone, and questioned him. During questioning, Ellis admitted to communicating with a person that he believed to be an underage female and asking her to send him pornographic videos. The FBI searched Ellis’ phone and found numerous files containing child pornography.
The criminal indictment was the result of an investigation by the Federal Bureau of Investigation.
Assistant United States Attorney Emily Swecker 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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Ooltewah Woman Sentenced to 20 Years Imprisonment for Creation of A Crush Video and Transportation of Child PornographyRead the Press Release
CHATTANOOGA, Tenn.– On April 14, 2021, Teela Moore Hendrix, 35, of Ooltewah, Tennessee, was sentenced by the Honorable Curtis L. Collier, in the United States District Court for the Eastern District of Tennessee at Chattanooga.
As part of the plea agreement filed with the court, Hendrix agreed to plead guilty to a superseding indictment charging her with one count of transportation of child pornography, in violation of 18 U.S.C. §§ 2252A(a)(1) and (b)(l); and one count of creation of a crush video, which includes depictions of the sexual assault of an animal, in violation of 18 U.S.C. § 48.
Hendrix was sentenced to 235 months in prison, followed by 10 years of supervised release. Hendrix will be required to register with state sex offender registries and comply with special sex offender conditions during her supervised release.
The defendant sexually abused her 4-year-old son and the family dog and created digital videos of the abuse, which she traded with someone she met in an online room dedicated to sexually abusing animals.
“Mrs. Hendricks’ sentence reflects the seriousness of her crimes and the enduring harm caused when offenders record and preserve their abhorrent exploitation of minors in visual media. Thanks to a partnership between the Hamilton County Sheriff’s Office, Homeland Security Investigations, and the North Carolina State Bureau of Investigation, Mrs. Hendricks is now in prison, and her son is now safe,” said Acting United States Attorney Francis M. Hamilton III.
“The results of this investigation highlight the Hamilton County Sheriff’s Office commitment to protecting our children and the collaborative partnerships we share with our law enforcement partners specifically the United States Attorney’s Office, the Department of Homeland Security Investigations, and the North Carolina State Bureau of Investigation. Together, we will continue to aggressively pursue and prosecute those who prey upon our community’s most vulnerable, our children,” stated Chief Deputy Austin Garrett of the Hamilton County Sheriff’s Office (“HCSO”).
“HSI agents make it a top priority to work with all of our law enforcement partners to investigate predators involved with the production, distribution and possession of child sexual abuse material,” said Special Agent in Charge Jerry C. Templet, Jr, HSI Nashville. “Each year, millions of children fall prey to sexual predators, and it is imperative that we do our part to protect vulnerable children from victimization and ensure the perpetrators are punished for their heinous crimes.”
The criminal indictment was the result of an investigation by the Hamilton County Sheriff’s Office, Homeland Security Investigation, and the North Carolina State Bureau of Investigation (“NC SBI”). This investigation was led by Task Force Officer Ed Merritt and Special Agent Dave Nalley of HSI and Special Agent Chris Munden of the NC SBI.
Assistant United States Attorney James T. Brooks 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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Robert Goins Leeper Receives 21 Year Prison Sentence for Conspiracy to Distribute MethamphetamineRead the Press Release
GREENEVILLE, Tenn. – On April 5, 2021, Robert Goins Leeper, 52, currently of Clarksville, was sentenced by the Honorable J. Ronnie Greer, in the United States District Court for the Eastern District of Tennessee at Greeneville.
As part of the plea agreement filed with the court, Leeper pleaded guilty to an indictment charging him with one count of Conspiracy to Distribute and Possess with the Intent to Distribute 50 Grams or More of Actual Methamphetamine, U.S.C. 21 U.S.C. § § 846, 841(a)(1), and (b)(1)(A). Leeper was sentenced to 262 months (21.8 years) in prison, followed by five years of supervised release.
In the spring of 2017, local and federal agencies coordinated an investigation into a methamphetamine distribution organization operating in Elizabethton, Tennessee. Leeper was identified as a member of the conspiracy, and it was determined that Leeper conspired with others to distribute hundreds of pounds of methamphetamine into upper northeast Tennessee. Leeper used co-defendants to transport pounds of methamphetamine from California to Tennessee, and he then distributed the methamphetamine to other co-defendants for further distribution. Additionally, Leeper possessed firearms during the conspiracy to protect himself and others during drug transactions.
The criminal indictment was the result of an investigation by the Homeland Security Investigation (“HSI”), the Drug Enforcement Administration (“DEA”), and the Elizabethton and Carter County Joint Drug Task Force. This investigation was led by HSI Special Agent John Bulla.
Assistant U.S. Attorney Meghan L. Gomez represented the United States.
The investigation resulted from the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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North Carolina Man Sentenced to 40 Years Imprisonment for Exploitation of Nine-Month-Old and Transportation of Child PornographyRead the Press Release
CHATTANOOGA, Tenn.– On April 7, 2021, Anthony Brett Banks, 30, formerly of Kannapolis, North Carolina, was sentenced by the Honorable Curtis L. Collier, in the United States District Court for the Eastern District of Tennessee at Chattanooga.
As part of the plea agreement filed with the court, Banks agreed to plead guilty to a superseding indictment charging him with one count of transportation of child pornography, in violation of 18 U.S.C. 18 U.S.C. §§ 2252A(a)(1) and (b)(l); and one count of causing another person to transport and ship child pornography in interstate commerce, in violation of 18 U.S.C. §§ 2252A(a)(1) and (b)(1) and Title U.S.C. §§ 2(b).
Banks was sentenced to 480 months in prison, followed by 10 years of supervised release. Banks will be required to register with state sex offender registries and comply with special sex offender conditions during his supervised release.
The defendant sexually abused his 9-month-old biological daughter, created digital videos of the abuse, and traded several of the images with someone he met in an online room dedicated to sexually abusing animals. The person with whom the defendant swapped images was located here in the Eastern District of Tennessee.
“The US Attorney’s Office, along with its law enforcement partners, is committed to apprehending child sex predators wherever they operate. Today’s sentence sends a strong message to sexual predators and demonstrates our commitment to protecting the community’s most vulnerable victims,” said Acting United States Attorney Francis M. Hamilton III.
“Each year, millions of children fall prey to sexual predators,” said Homeland Security Investigation (“HSI”) Nashville Special Agent in Charge Jerry C. Templet, Jr. “HSI agents make it a top priority to protect vulnerable children from victimization by working with their law enforcement partners to investigate predators involved with the production, distribution and possession of child sexual abuse material and ensure they are held accountable for their heinous actions. I commend our agents for their tireless efforts in this case, which resulted in a guilty plea and a lengthy federal prison sentence for the offender.”
The criminal indictment was the result of an investigation by the Hamilton County Sheriff’s Office (“HCSO”), HSI, and the North Carolina State Bureau of Investigation (“NC SBI”). This investigation was led by Task Force Officer Ed Merritt and Special Agent Dave Nalley of HSI and Special Agent Chris Munden of the NC SBI.
Assistant United States Attorney James T. Brooks 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 Arrested for Attempting to Provide Material Support to ISISRead the Press Release
Benjamin Alan Carpenter, also known as “Abu Hamza,” 31, was arrested on March 24, 2021, in Knoxville following the return of a federal grand jury indictment charging him with attempting to provide material support and resources to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. A detention hearing was held today, April 5, 2021, before U.S. Magistrate Judge Debra C. Poplin. Carpenter remains detained pending the outcome of the detention hearing. Carpenter’s trial is set for June 1, 2021, before United States District Judge Katherine A. Crytzer.
Carpenter is a United States citizen who resides in Knoxville. According to documents filed with the Court, Carpenter is the leader of Ahlut-Tawhid Publications, an international organization dedicated to the translation and publication of pro-ISIS and official ISIS media in English. Carpenter was also in contact with an individual who he believed was associated with ISIS; however, unbeknownst to Carpenter, the individual was a covert FBI employee. Carpenter provided English-language translations of ISIS media content to that individual for use by ISIS.
The indictment and arrest were announced by John C. Demers, Assistant Attorney General for National Security at the U.S. Department of Justice, Francis M. Hamilton III, Acting United States Attorney for the Eastern District of Tennessee; and Joseph E. Carrico, Special Agent-in-Charge of the Knoxville office of the Federal Bureau of Investigation. The case was investigated by the Knoxville Joint Terrorism Task Force, which is comprised of federal, state, and local law enforcement agencies, including the Tennessee Bureau of Investigation, Tennessee Highway Patrol, Clinton Police Department, and Knoxville Police Department.
If convicted, Carpenter faces up to 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the assigned judge. In all cases, defendants are presumed innocent until and unless proven guilty; indictments merely contain allegations supported by probable cause.
The government is represented by Assistant U.S. Attorney Casey T. Arrowood of the Eastern District of Tennessee and Trial Attorneys George C. Kraehe and Felice John Viti of the National Security Division’s Counterterrorism Section.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his/her guilt has been proven beyond a reasonable doubt.
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Jerriod Sivels Sentenced for Conspiracy to Distribute Cocaine and Money LaunderingRead the Press Release
Chattanooga, Tennessee – On March 26, 2021, Jerriod Sivels, also known as Jerriod Lee, 31, of Chattanooga, was sentenced to 142 months in prison by the Honorable Travis R. McDonough, in the United States District Court for the Eastern District of Tennessee at Chattanooga.
Sivels previously pleaded guilty to one count of conspiracy to distribute 5 kilograms or more of cocaine, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(A), and one count of money laundering, in violation of Title 18, United States Code, Section 1956(a)(1)(A).
The conviction was the result of an investigation into a drug trafficking organization responsible for distributing multiple kilograms of cocaine in the Eastdale and Brainerd communities of Chattanooga. Sivels was identified as a leader of the organization.
“This prosecution, which has made our community safer, provides an excellent example of the law enforcement successes that can be achieved through federal, state, and local collaboration,” said Acting United States Attorney Francis M. Hamilton III. “The U.S. Attorney’s Office values the coordinated law enforcement response that dismantled the drug trafficking organization in this case.”
“Today’s announcement should serve as a warning to anyone who seeks to poison our communities with dangerous and illegal drugs,” said Special Agent in Charge J. Todd Scott, who oversees DEA operations in Tennessee, Kentucky, and West Virginia. “The Drug Enforcement Administration works very closely with our law enforcement partners, like the Chattanooga Police Department, to ensure that criminal drug activity is shut down and those responsible are brought to justice. We are very grateful to CPD for their on-going cooperation and assistance.”
Chattanooga Chief of Police David Roddy said, "the Chattanooga Police Department is thankful for the partnership we have in the Federal system. The cooperative impact of our investigators and our Federal Partners has resulted in a prosecution that dismantled an organization, will keep Sivels from continuing to harm our community via drug trafficking, and has made our neighborhoods safer."
This prosecution is the result of an investigation by the United States Drug Enforcement Administration (“DEA”), the Chattanooga Police Department (“CPD”), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”). The DEA Chattanooga Resident Office High Intensity Drug Trafficking Area (“HIDTA”) Task Force led the investigation. THE HIDTA Task Force includes Task Force Officers from CPD, the Tennessee Bureau of Investigation, Hamilton County Sheriff’s Office, Franklin County Sheriff’s Office, Red Bank Police Department, and the Tennessee Highway Patrol.
The investigation was a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Special Assistant United States Attorney Kevin Brown represented the United States. Brown is a Special Assistant City Attorney with the Chattanooga Police Department designated to the United States Attorney’s Office to prosecute violations of federal firearm and drug laws.
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Lenoir City Woman Sentenced to Five Years Imprisonment for Elder Fraud SchemeRead the Press Release
KNOXVILLE, Tenn. – On March 25, 2021, Christina Erin Myers, 39, of Lenoir City was sentenced by the Honorable Katherine A. Crytzer, United States District Judge for the Eastern District of Tennessee, to serve 63 months in federal prison for Myers’ wire fraud and money laundering convictions arising from her investment fraud scheme to deceive elderly victims. Myers was also ordered to pay more than $400,000 in restitution to her victims.
In 2019, Myers pleaded guilty to one count of wire fraud and one count of money laundering. In her plea agreement filed with the Court, Myers admitted to defrauding elderly victims by diverting to her own use the funds that her victims had provided to her for the purchase of real estate from Tennessee Baptist Adult Homes, marketing non-existent senior communities, and promoting fictitious investment opportunities. Myers further admitted that she failed to invest the funds as she promised and diverted those funds for her personal benefit without the knowledge or authorization of her victims. Myers also admitted to making financial transactions with the stolen funds, and that she did so to keep her fraud scheme going.
The investigation was conducted by the Internal Revenue Service – Criminal Investigation, the Lenoir City Police Department, and the Tennessee Highway Patrol.
Assistant U.S. Attorney Frank M. Dale, Jr. represented the United States in court.
###Hamblen County Man Convicted of Drug and Firearm ChargesRead the Press Release
GREENEVILLE, Tenn. – On March 19, 2021, a federal jury convicted, Lynn Richard Norton, 61, of Morristown, Tennessee, of conspiracy to distribute more than 50 grams of methamphetamine, distribution of methamphetamine, and possession of a firearm by a convicted felon. As a result of the convictions, the defendant faces a prison sentence of 15 years up to life. The Honorable J. Ronnie Greer, United States District Judge, presided over the trial. Sentencing is scheduled for September 13, 2021.
Beginning in early 2019, according to evidence presented at trial, Norton conspired to distribute more than 50 grams of methamphetamine with James Ward, another defendant who pled guilty to the charge and who testified against Norton. Ward testified he supplied Norton with two to four ounces of methamphetamine per week, and on two occasions, Norton sold Ward methamphetamine. On April 8, 2019, Norton also sold methamphetamine and a Bryco Arms 9 mm pistol to a confidential informant who was working with the Hamblen County Sheriff’s Office. Norton has a number of prior felony convictions, including convictions for drug dealing, aggravated assault, and escape. Based on his record, Norton is considered an armed career criminal under federal law and therefore faces a sentence of 15 years to life.
This was the first federal criminal jury trial completed in Greeneville in the Eastern District of Tennessee since the expiration of the Court’s standing order suspending jury trials due to the COVID-19 pandemic.
Investigating agencies included the Hamblen County Sheriff’s Office, the Johnson City Police Department, the Tennessee Bureau of Investigation, the Federal Bureau of Investigation, and the Drug Enforcement Administration.
Assistant U.S. Attorneys Emily Swecker and Mac Heavener represented the United States in court.
This case was part of the High Intensity Drug Trafficking Areas (HIDTA) program. The HIDTA program enhances and coordinates drug control efforts among local, state, and federal law enforcement agencies. The program provides agencies with coordination, equipment, technology, and additional resources to combat drug trafficking and its harmful consequences in critical regions of the United States. The program began in 1988 when Congress authorized the Director of The Office of National Drug Control Policy designate areas within the United States that exhibit serious drug trafficking problems and harmfully impact other areas of the country as HIDTAs.
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Blount County Man Convicted of Child Exploitation ChargesRead the Press Release
KNOXVILLE, Tenn. – On March 17, 2021, a federal jury convicted a registered sex offender, Tywan Montrease Sykes, 45, of Louisville, Tennessee, of using a minor to produce child pornography, enticement of a minor for sex, committing those offenses while being required to register as a sex offender, and possession of child pornography. As a result of the convictions, the defendant is subject to a prison sentence of 25 years up to life. Honorable Thomas A. Varlan, United States District Judge, presided over the trial. Sentencing is scheduled for July 29, 2021.
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.
This was the first federal jury trial completed in the Eastern District of Tennessee since the expiration of the Court’s standing order suspending jury trials due to the COVID-19 pandemic.
The investigation was led by Knoxville Police Department officers who are designated as Task Force Officers with Homeland Security Investigations.
Assistant U.S. Attorneys Matthew T. Morris and Gretchen Mohr represented the United States in court.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about PSC, please visit www.projectsafechildhood.gov.
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Multi-State Bank Robbers Indicted in the Eastern District of TennesseeRead the Press Release
KNOXVILLE, Tenn. – Charles Pingley, 52, of North Carolina, and his sister, Loretta Johnson, 50, of Maryville, Tennessee, were indicted by a Federal Grand Jury on February 17, 2021, for one count of Conspiracy to Commit Bank Robbery and two counts of Bank Robbery. The case has been set for trial on April 27, 2021, in the United States District Court for the Eastern District of Tennessee, before the Honorable Judge Katherine Crytzer, United States District Judge.
The indictment alleges that, between October to December 2020, Pingley and Johnson conspired to rob banks in North Carolina and Tennessee. Specifically, the indictment alleges that on October 6, 2020, Pingley and Johnson robbed the First Citizens Bank in Carolina Beach, North Carolina, taking over $15,000 in cash. The indictment also alleges that Pingley and Johnson robbed the Foothills Federal Credit Union in Lenoir City, Tennessee on November 5, 2020, taking over $9,000.00 in cash. Lastly, the indictment alleges that on November 27, 2020, Pingley and Johnson robbed the Simmons Bank in Vonore, Tennessee, taking over $22,000 in cash.
If convicted for the bank robberies, the defendants face up to 20 years imprisonment, a fine of up to $250,000, a term of supervised release of up to three years, any applicable forfeiture, and a $100 special assessment for each count of bank robbery. If convicted of the conspiracy to commit bank robbery charge, the defendants face up to five years imprisonment, a fine of up to $250,000, one year of supervised release, and $100 special assessment
The investigation was led by the Federal Bureau of Investigation, Knoxville Division, Carolina Beach Police Department, North Carolina, Lenoir City Police Department, Tennessee, Harnett County Sheriff’s Office, North Carolina, Dunn Police Department, North Carolina, Loudon County, Sheriff’s Office, Tennessee, and the Vonore, Police Department, Tennessee.
Assistant United States Attorney Alan Kirk will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
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Telford Man Sentenced for Being A Felon in Possession of A FirearmRead the Press Release
GREENEVILLE Tenn. – On February 8, 2021, Lyle Vernon Tarlton, 30, of Telford, was sentenced by the Honorable J. Ronnie Greer, in the United States District Court for the Eastern District of Tennessee at Greeneville.
Tarlton plead guilty to possessing a firearm after having been convicted of an offense punishable by imprisonment exceeding one year. Tarlton was sentenced to 63 month’s imprisonment followed by three years on supervised release.
On August 13, 2019, deputies with the Washington County Sheriff’s Office found Tarlton asleep in a vehicle parked on the side of a road in Telford, Tennessee. Tarlton, who was sitting in the driver’s seat with the keys in the ignition, was asked to step out of the vehicle. Deputies observed a short barrel shotgun laying between the driver’s seat and the driver’s door. Tarlton, who had previously been convicted of a felony, was prohibited from possession of a firearm. Additionally, it is a violation of federal law to possess a shotgun with a barrel shorter than 18 inches that has not been registered in the National Firearms Registration and Transfer Record.
The criminal indictment was the result of a joint investigation by the Washington County Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Assistant United States Attorney J. Gregory Bowman represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
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LaFollette Man Sentenced for Distribution of Child PornographyRead the Press Release
KNOXVILLE, Tenn. – On February 18, 2021, Timothy Wayne Turben, 40, of LaFollette, Tennessee, was sentenced by the Honorable R. Leon Jordan, U.S. District Judge, to serve 97 months in federal prison for knowingly distributing child pornography in interstate commerce.
Following his imprisonment, Turben will be supervised by the U.S. Probation Office for five years and will be required to register with the state sex offender registry in any state in which he lives, works, or attends school.
The investigation began after a social media company notified the National Center for Missing and Exploited Children that the defendant’s social media account was utilized to send child pornography to others through the internet. In October 2018, the FBI executed a federal search warrant and seized computer devices containing 75 digital videos and over 1000 images of child pornography from Turben’s residence. Turben confessed that he had sent child pornography to others with his social media account.
The case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Matthew T. Morris represented the United States in court.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about PSC, please visit www.projectsafechildhood.gov.
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Two Mexican Citizens Sentenced for Robbery SpreeRead the Press Release
KNOXVILLE, Tenn. – On February 3, 2021, Juan Sanchez, 24, a citizen of Mexico, was sentenced by the Honorable Thomas A. Varlan, in the United States District Court for the Eastern District of Tennessee at Knoxville. Emanuel Trejo, 22, also of Mexico, Sanchez’s co-defendant, was sentenced on November 12, 2020 by the Honorable Thomas A. Varlan.
As part of their plea agreements, Juan Sanchez and Emmanuel Trejo agreed to plead guilty to an indictment charging them with three counts of Hobbs Act Robbery and three counts of brandishing and discharging a firearm in relation to those robberies. Juan Sanchez was sentenced to 288 months in prison. Emmanuel Trejo was sentenced to 192 months in prison. Both Sanchez and Trejo are subject to deportation following their terms of incarceration.
The federal Hobbs Act Robbery statute encompasses robberies of businesses or people engaged in interstate commerce. Sanchez and Trejo committed three armed robberies of three businesses in Knox, Loudon and Blount Counties in 2019.
One of those robberies was of the La Lupita store in Maryville, Tennessee. During that robbery, Sanchez fired multiple shots from his firearm. Fortunately, no one was injured.
“The lengthy sentence in this case strongly reflects the continued positive impact our federal, state, and local law enforcement partnerships have on stopping and prosecuting armed robberies within our communities. Our office will continue to aggressively prosecute those who commit armed robbery,” said U.S. Attorney J. Douglas Overbey.
This robbery had a major impact on the family who owns La Lupita as well as the customers who shop there, "Sheriff James Lee Berrong said. "Mr. Sanchez and Mr. Trejo committed a violent crime against citizen of our community, and our investigators took that to heart and worked extremely hard to solve this case. We are grateful to the FBI for taking the case to the federal level, equating to stiffer penalties. We are also proud of our working relationships with law enforcement agencies at all levels of government, and thankful our partnership worked so well in this case."
The criminal indictment was the result of an investigation by the Blount Count Sherriff’s Department and Federal Bureau of Investigation’s Safe Streets Task Force. This investigation was led by FBI Special Agent Wesley Latham.
Assistant United States Attorney Cynthia F. Davidson represented the United States.
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Statement by U.S. Attorney J. Douglas Overbey on the Deadly Shooting of FBI Special Agents in FloridaRead the Press Release
KNOXVILLE, Tenn. – United States Attorney J. Douglas Overbey, along with Acting Attorney General Monty Wilkinson and FBI Director Christopher Wray, mourn the loss of the two FBI Special Agents who died in the line of duty today in Sunrise, Florida.
“Our office stands together with our federal, state, and local law enforcement partners and mourns the loss of these two heroes who paid the ultimate sacrifice. Our office sends our deepest condolences to their families, and we pray for a speedy recovery for the officers who were injured during the incident,” said U.S. Attorney J. Douglas Overbey.
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Five New Guilty Pleas in Nationwide Telemedicine Pharmacy Health Care Fraud ConspiracyRead the Press Release
GREENEVILLE, Tenn.– Today, Larry Everett Smith, 50, of Tampa, Florida, pleaded guilty before Senior District Judge Ronnie Greer to one count of conspiracy to commit health care fraud. Sentencing has been set for October 25, 2021 at 3:00 p.m., in United States District Court in Greeneville. Smith faces a term of up to 10 years in prison.
The First Superseding Indictment, returned December 1, 2020, charged Smith and others with a nationwide conspiracy to defraud pharmacy benefit managers out of $174,202,105 by submitting $931,356,936 in bills to the pharmacy benefit managers for fraudulent prescriptions purchased from a telemarketing company. The indictment alleges the conspiracy began in mid-2015 and lasted through the first months of 2018.
In a written plea agreement, Smith admitted to conspiring with Scott Roix, Mihir Taneja, Arun Kapoor, Sterling-Knight Pharmaceuticals LLC, HealthRight LLC, Alpha-Omega Pharmacy LLC, Germaine Pharmacy Inc., Zoetic Pharmacy, and Tanith Enterprises, and others to defraud pharmacy benefit managers into paying for fraudulent prescriptions for topical pain creams, vitamins, and other products. Smith agreed to pay restitution of $24,919,254 and forfeit approximately $3,052,215.
On September 26, 2018, Roix and HealthRight pleaded guilty to conspiracy to commit health care fraud for their roles in the scheme and agreed to pay restitution of $5,000,000. Roix faces a term of up to 10 years in prison. Sentencing for Roix is set for October 25, 2021.
Smith’s guilty plea follows pleas by Mihir Taneja, Arun Kapoor, Maikel Bolos, and Sterling-Knight Pharmaceuticals in December 2020. In those plea agreements, Taneja, 46, of Tampa, Florida, and Kapoor, 47, of Temple Terrace, Florida, pleaded guilty to felony mis-branding. Maikel Bolos, 35, of Tampa, Florida, pleaded guilty to conspiracy to commit health care fraud and mail fraud, and Sterling-Knight Pharmaceuticals, a Nevada company operated out of Tampa, Florida, pleaded guilty to conspiracy to commit health care fraud. Taneja, Kapoor, and Sterling-Knight agreed to pay restitution of $20,981,786. Sterling-Knight also agreed to forfeit $6,168,398. Taneja and Kapoor, each, face a term of up to 3 years in prison. Bolos faces a term of up to 5 years in prison. Sentencing for Taneja, Kapoor, Bolos, and Sterling-Knight is set for October 18, 2021.
“The protection and integrity of our health care programs are vital to the citizens they serve. Many Tennesseans rely on these health care programs to maintain a healthy quality of life, and it is critical we protect the viability of these programs,” said U.S. Attorney J. Douglas Overbey.
“Telemarketing fraud is a major threat to the integrity of government and commercial insurance programs,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “After improperly soliciting patient information, these marketing companies obtained approvals through contracted telemedicine prescribers, then sold those costly prescriptions to pharmacies in exchange for kickbacks.”
“Health care fraud can affect everyone, and Homeland Security Investigations (HSI) is committed to stopping these criminals in their tracks,” said HSI Tampa acting Special Agent in Charge Kevin Sibley. “This investigation highlights the importance of law enforcement partnerships across the nation and around the world.”
“The U.S. Office of Personnel Management Office of the Inspector General is committed to protecting the federal health care programs from schemes that undermine the integrity of the program,” said Norbert E. Vint, Deputy Inspector General Performing the Duties of the Inspector General. “I am very proud of our investigative staff and partners at the Department of Justice for their hard work on behalf of American taxpayer.”
“Today’s announcement demonstrates that companies and individuals who place profits above patient safety will be held accountable for their actions,” said Special Agent in Charge Justin C. Fielder, FDA Office of Criminal Investigations Miami Field Office. “We will continue to work with the Department of Justice and our law enforcement partners to bring to justice those who jeopardize the U.S. public health.”
“Health care fraud is a severe crime problem that impacts every American. The FBI, with its law enforcement partners, will continue to allocate resources to investigate these crimes and prosecute those that are intent on defrauding the health care system,” said Special Agent in Charge Joseph Carrico of the FBI Knoxville Field Office.
The trial of the remaining defendants will commence July 13, 2021, in the district court in Knoxville, Tennessee.
The prosecution and plea agreements were coordinated by Assistant U.S. Attorneys TJ Harker, Mac Heavener, Anne-Marie Svolto, and Gretchen Mohr of the U.S. Attorney’s Office for the Eastern District of Tennessee, and Trial Attorney David Gunn of the Department’s Consumer Protection Branch. Assistant U.S. Attorneys TJ Harker and Mac Heavener, and Trial Attorney David Gunn will try the matter for the government and represent the government at court proceedings.
These 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 the 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.
The case is United States v. Andrew Assad et al (2:18-CR-140). Related cases are United States v. Mihir Taneja (2:20-CR-111), United States v. Arun Kapoor (2:20-CR-110), United States v. Sterling-Knight Pharmaceuticals LLC (2:20-CR-113), United States v. Maikel Bolos (2:20-CR-112), and United States v. Scott Roix and HealthRight LLC (2:18-CR-133).
https://www.justice.gov/usao-edtn/pr/four-men-and-seven-companies-indicted-billion-dollar-telemedicine-fraud-conspiracy;
https://www.justice.gov/usao-edtn/pr/telemarketer-and-his-companies-agree-pay-25-million-settle-allegation-they-operated
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Bristol Realtor Pleads Guilty to Ponzi SchemeRead the Press Release
GREENEVILLE, Tenn.– On January 19, 2021, Tammy Lynn Hawk, 47, currently of Bristol, Tennessee, entered guilty pleas to counts of wire fraud, aggravated identity theft, money laundering, and filing a false tax return in the United States District Court for the Eastern District of Tennessee at Greeneville. Sentencing has been set for April 23, 2021 at 10:00 a.m., before District Judge Corker, in United States District Court at Greeneville.
Hawk faces an agreed sentence of 10 years in Federal prison, plus up to $1.25 million in fines, and supervised release of three years.
As part of the written plea agreement, Hawk waived indictment by a federal grand jury and agreed to plead guilty to an information charging her with the above-listed crimes. Hawk admitted to using her position as a realtor to swindle numerous customers who thought they were making real estate investments. In reality, Hawk was taking money from new investors to either fund her own lifestyle or to repay existing investors.
According to the plea agreement, Hawk was a licensed real estate agent. Under her scheme, she would falsely tell current and former customers about parcels of real estate that she could arrange for them to purchase and “flip” for substantial gains. She would advise customers that once they agreed to purchase a particular property, the customer would need to provide her with cash, and through a relationship she had with a Florida real estate investment company, that company would purchase the property and then convey the property to the customer. As part of her scheme, Hawk would provide phony contracts purporting to represent contracts for the purchase of properties by the Florida company. However, neither Hawk nor the Florida real estate investment company had any ownership in the properties Hawk was offering to sell. After customers provided Hawk with cash, she would use the money for her own benefit or would repay previously defrauded customers with it.
As part of her scheme, Hawk also signed at least one customer’s name to a purchase and sale agreement without the customer’s knowledge or consent. As set out in the written plea agreement, Hawk caused or intended to cause losses to 24 victims in excess of $1 million. She also failed to pay income tax on the money she was obtaining from her fraud for tax years 2015 through 2018, leaving unpaid income taxes of more than $100,000. In 2019, Hawk filed for bankruptcy, but she then failed to list her accurate income or all the people she had swindled.
The investigation was conducted by the United States Secret Service, the Internal Revenue Service, Criminal Investigations, the Bristol Police Department, and the Office of the District Attorney General for Tennessee’s Second Judicial District.
Assistant United States Attorneys Mac D. Heavener and Todd Martin represented the United States.
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Statement by U.S. Attorney J. Douglas Overbey on Protecting the Constitution and Upholding the Rule of LawRead the Press Release
KNOXVILLE, Tenn. – United States Attorney J. Douglas Overbey joins Acting Attorney General Jeffrey A. Rosen and other U.S. Attorneys in the continued commitment to protect the Constitution and uphold the Rule of Law under all circumstances.
“I am shocked and appalled by the mob violence that occurred yesterday in our nation’s Capitol,” said U.S. Attorney J. Douglas Overbey. “As the United States Attorney for the Eastern District of Tennessee, I took an oath to protect and defend the Constitution of the United States, which carries with it a duty to uphold the Rule of Law.”
“Our office remains dedicated to preserving the public’s constitutional right to peaceably assemble, demonstrate, and petition the government for a redress of grievances. However, it is also our duty to protect citizens from violence and criminal activity. Accordingly, where appropriate under the facts, our office will consider the prosecution of those whose conduct crosses the line from peaceful protest to violence and other criminal activity in violation of federal law.”
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U.S. Attorney's Office for the Eastern District of Tennessee Collects $7,442,571.29 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2020Read the Press Release
KNOXVILLE, Tenn.– United States Attorney J. Douglas Overbey announced that the Eastern District of Tennessee collected $7,442,571.29 in criminal and civil actions in Fiscal Year (FY) 2020. Of this amount, $2,581,550.52 was collected in criminal actions and $4,861,020.77 was collected in civil actions. U.S. Attorney J. Douglas Overbey praised the hard work of the Assistant U.S. Attorneys and the Monetary Recovery Unit stating, “The men and women of the U.S. Attorney’s Office continue to work diligently to ensure East Tennesseans receive justice. The money recovered for victims of crime and taxpayers is the direct result of the hard work and commitment our Assistant U.S. Attorneys dedicate to the wellbeing of this community.”
Highlights of the Eastern District of Tennessee’s FY 2020 collections effort include:
- A $1,500,000 civil settlement with Retina Associates to resolve False Claims Act Allegations in February 2020.
- Sylvia Hofstetter was found guilty and sentenced for her role in operating pill mills in East Tennessee. She was also ordered to forfeit $3.6 million in ill-gotten gains.
- $555,000 in criminal restitution was collected from five defendants involved in a pain cream scheme fraud case. All five defendants were convicted for their roles in defrauding both private and government insurance programs.
- In November, 2020, as part of her sentence, Cheryl Broussard was required to forfeit $106,000, which represented the proceeds of her defrauding a National Women’s Sorority as part of an investment management scheme. In addition, Broussard was ordered to pay $106,000 in restitution to her victims.
- $132,343.50 in criminal restitution was collected from a former Controller, Shain Chappel, who was sentenced for an embezzlement scheme in July 2020.
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. The U.S. Attorneys’ Offices, along with the Justice Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States 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 Justice Department’s Crime Victims Fund, which distributes the funds to federal and state victim compensation and victim assistance programs.
Nationwide, the United States Justice Department collected more than $15.9 billion in civil and criminal actions in FY 2020, ending September 30, 2020. The $15,988,516,670 in collections in FY 2020 represents more than five times the approximately $3.2 billion appropriated budget for the 94 U.S. Attorney’s Offices and the main litigating divisions of the Justice Department combined in that same period. The total includes all monies collected as a result of Justice Department-led enforcement actions and negotiated civil settlements. It includes more than $13.5 billion in payments made directly to the Justice Department, and more than $2.4 billion in indirect payments made to other federal agencies, states, and other designated recipients.
The largest civil collections in FY 2020 were from affirmative civil enforcement cases in which the United States recovered government money lost to fraud, other misconduct, or collected fines imposed upon individuals and/or corporations for violations of federal health, safety, civil rights, or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration, and the Department of Education.
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Federal Grand Jury Indicts 11 in Heroin Distribution ConspiracyRead the Press Release
GREENEVILLE, Tenn. – On August 4, 2020 a federal grand jury in the Eastern District of Tennessee returned a 12-count indictment against the following individuals for their roles in the distribution of heroin:
Jonathan Bryant Taylor, also known as “Marquis”, 45, of Charlotte, North Carolina;
Kendall Pitts, also known as “Face”, 44, of Raleigh, North Carolina;
Rodney Jenkins, also known as “Unk”, 54, of Brooklyn, New York;
Ricky Allen Overbay, 59, of Kingsport, Tennessee;
Angela Beth Bernard, 37, of Kingsport, Tennessee;
Tessa Rae Hines, 39, of Kingsport, Tennessee;
Cierra Brionna Long, 25, of Kingsport, Tennessee;
Bethany Kay Childress, 51, of Kingsport, Tennessee;
Alexander Shamell Powell, also known as “Big Mike”, 43, of Kingsport, Tennessee;
Clarence L. Benjamin, also known as “Streets”, 43, of Johnson City, Tennessee;
Kirk Estes, 61, of Kingsport, Tennessee.
The case was unsealed on January 4, 2021 after the final defendant was apprehended. The case has not yet been set for trial. The case will be heard by the Honorable Clifton L. Corker, U.S. District Court Judge.
The indictment, on file with the U.S. District Court, alleges that each of these individuals was involved in a conspiracy to distribute one kilogram or more of heroin in the Eastern District of Tennessee and elsewhere. The indictment also alleges other charges related to the distribution and possession with the intent to distribute heroin. Additionally, Long is charged with distributing a quantity fentanyl; Benjamin is charged with possessing with the intent to distribute 50 grams or more of methamphetamine; and Taylor and Benjamin were also each charged with possession of a firearm in furtherance of a drug trafficking crime.
If convicted of the heroin conspiracy charge, each faces a minimum mandatory term of imprisonment of at least 10 years and up to life, at least five years of supervised release, a fine of up to $10,000,000, any applicable forfeiture, and a $100 special assessment. The punishment for the firearm charges returned against Taylor and Benjamin is a minimum mandatory term of at least five years and up to life in prison, which must be served consecutively to any other prison term imposed, up to five years supervised release, a fine of up to $250,000, and a $100 special assessment.
Law enforcement partners have established task forces aimed at combating an increase of heroin overdoses in and around Kingsport, Tennessee. This operation targeted a network of individuals believed to be responsible for bringing heroin into the area from out-of-state sources of supply, and then distributing it in the Tri-Cities area. The on-going investigation is the product of a partnership between Sullivan County Sheriff’s Department, Kingsport Police Department, Second Judicial Drug Task Force, Tennessee Bureau of Investigation, Tennessee National Guard Counter-Drug Task Force, Tennessee Highway Patrol, Sullivan County District Attorney’s Office, Appalachia High Intensity Drug Trafficking Areas Task Force (AHIDTA), United States Marshal Service, Homeland Security Investigations, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Federal Bureau of Investigation.
Assistant U.S. Attorneys Robert Reeves and J. Christian Lampe will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
The effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at OCDETF.
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United States Attorney J. Douglas Overbey Announces Management and Supervisory Staff ChangesRead the Press Release
KNOXVILLE, Tenn. – J. Douglas Overbey, U.S. Attorney for the Eastern District of Tennessee, today announced changes in some of the management and supervisory personnel for the district.
Francis M. (Trey) Hamilton III has been chosen to serve as the First Assistant U.S. Attorney for the district. Hamilton, a native of Nashville, Tenn., joined the office in 2002, as an Assistant U.S. Attorney. He had previously served as a Deputy Chief and Senior Litigation Counsel in the Criminal Division. Over his career, Hamilton has overseen and tried numerous complex prosecutions ranging from corporate fraud to civil rights deprivation. Most recently, Hamilton was awarded the Attorney General’s Claudia J. Flynn Award for Professional Responsibility. Prior to joining the U.S. Attorney’s Office, Hamilton worked for two prominent national law firms where he engaged in complex civil litigation, and before that, he served as law clerk to the Honorable Jerome Turner, United States District Judge for the Western District of Tennessee. Hamilton 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. He earned his undergraduate degree from Rhodes College, where he graduated magna cum laude and was inducted into Phi Beta Kappa.
Caryn L. Hebets has been chosen to serve as Chief of the Criminal Division. Hebets, a native of Dearborn, Mich., joined the office as an Assistant U.S. Attorney in October 2005. She most recently served as a Deputy Chief of the Criminal Division and as the lead Organized Crime and Drug Enforcement Task Force (OCDETF) attorney for the district. Prior to joining the U.S. Attorney’s Office, Hebets was an Assistant Prosecuting Attorney for Berrien County, Mich., in addition to, working with the FBI. She received her law degree from Wayne State University and her undergraduate degree from the University of Michigan. She is a member of the Michigan bar.
Matthew T. Morris has been chosen to serve as Deputy Criminal Chief for the Knoxville office’s white collar and general crimes unit. He joined the U.S. Attorney’s Office in 1996. Since then, Morris has focused on prosecuting white-collar and child exploitation offenses, including environmental crime, fraud, public corruption, and child pornography. He has served as the U.S. Attorney’s Office’s Senior Litigation Counsel since 2018. Morris has previously headed up the office’s Project Safe Childhood, Environmental Crime, Asset Forfeiture, and Affirmative Civil Enforcement programs. Prior to joining the office, he was an Assistant Regional Counsel for the U.S. Environmental Protection Agency in Atlanta, GA, for five years. Morris earned his law degree in 1990, from the University of Oregon School of Law and his undergraduate degree from Kent State University in 1986.
Tracy Stone has been chosen to serve as Deputy Criminal Chief for the Knoxville office’s violent crimes and drug trafficking unit. Since joining the office in January 2006, Stone had prosecuted violent crimes, firearms offenses, and large-scale drug cases. For most of his tenure with the office, Stone has been assigned to the Organized Crime and Drug Enforcement Task Force (OCDETF). Established in 1982, to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations, the OCDETF program continues to be the centerpiece of the Department of Justice’s drug supply reduction strategy. Since 2010, Stone has dedicated significant time to battling the opioid epidemic, which hit the Eastern District of Tennessee particularly hard. Stone has successfully prosecuted hundreds of cases, including many successful jury trials. One of his more high-profile trials includes Eric Boyd’s federal trial for his role in the carjacking and murders of Channon Christian and Chris Newsom. Another is the recent four-month trial of Sylvia Hofstetter and three medical providers for their roles in operating illegal pill mills in Tennessee and Florida. Immediately prior to joining the United States Attorney’s Office, Stone prosecuted a variety of criminal cases, including several homicides, as an Assistant District Attorney in Tennessee’s Fourth Judicial District (Sevier, Cocke, Jefferson, and Grainger Counties). Previously, Stone was in private practice with the Chattanooga firm of Chambliss, Bahner & Stophel. Stone holds a Bachelors in Agricultural Economics from The University of Tennessee and is a 1999 Cum Laude graduate of the University of Tennessee College of Law.
David P. Lewen, Jr. has been chosen to serve as Senior Litigation Counsel. Lewen joined the U.S. Attorney’s Office in December 2007. Since then, Lewen has prosecuted a broad spectrum of complex cases, including large-scale drug trafficking and money laundering crimes, multi-million-dollar corporate fraud offenses, public corruption, and violent crimes, including bank robbery, extortion, kidnapping, and carjacking. In 2019, Lewen served a one-year international detail with the U.S. State Department to Timor-Leste, the youngest democratic nation in the Indo-Pacific, where he served as the U.S. Embassy’s Resident Legal Advisor, providing rule-of-law training and case-based mentorship to Timorese judges, prosecutors, and police. Prior to joining the U.S. Attorney’s Office in 2007, Lewen served for five years on active duty in the U.S. Army Judge Advocate General’s Corps, which included service in Korea, Hawaii, and Fort Bragg, N.C. Lewen received his law degree in 2002, from the Georgia State University College of Law, and in 1999, received his undergraduate degree in political science from Norwich University in Vermont, where he was the class valedictorian, a Distinguished Military Graduate, and a Rhodes Scholarship nominee.
Chris Poole has been chosen to serve as the Chattanooga Division Branch Chief. Poole joined the office in 2002, and, for the past 18 years, has focused on prosecuting violent crime. To that end, Poole presently serves as the office’s Project Safe Neighborhoods Coordinator and Anti-Gang Coordinator. Prior to his employment with the U.S. Attorney’s Office, Chris spent four years as an Assistant District Attorney in Hamilton County, Tenn., where he was a Criminal Court Division Supervisor. He received his undergraduate degree from Wake Forest University and his law degree from Georgia State University.
The Greeneville branch office continues to be supervised by Branch Chief Donald Wayne Taylor. Before joining the office as an Assistant U.S. Attorney in 2007, Taylor served as the Chief Assistant Commonwealth’s Attorney in Floyd County, Ky. He also has experience as an associate in a private law firm. He received a law degree from Widener University School of Law in Wilmington, Del., after receiving an undergraduate degree from Penn State University.
In the Civil Division’s Office, Loretta Harber remains Chief of the Civil Division. Harber, a native of Brooklyn, N.Y., and raised in Lexington, Ky, began in the office as an Assistant U.S. Attorney in 1987. She received her undergraduate and law degrees from the University of Tennessee. And, Robert C. McConkey, III continues to serve as Deputy Chief of the Civil Division. McConkey has been an Assistant U.S. Attorney with the office since 2010. Prior to joining the U.S. Attorney’s Office, he worked as an associate in private practice handling commercial and general civil litigation and served as a Deputy Law Director for Knox County, Tenn. He received his law degree from the Cumberland School of Law at Samford University after receiving an undergraduate degree from East Tennessee State University.
The U.S. Attorney’s Office for the Eastern District of Tennessee represents the interests of the United States in federal court in both civil and criminal matters. The eastern district is the largest federal district in Tennessee, with a population of more than 2.6 million, encompassing 41 of the state’s 95 counties, and spanning 420 miles. In addition to the headquarters office in Knoxville, there are branch offices in Chattanooga and Greeneville. U.S. Attorney Overbey, who was sworn in as the presidentially appointed, senate confirmed U.S. Attorney in November 2017, serves as the top-ranking federal law enforcement official in the district.
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Statement by U.S. Attorney J. Douglas Overbey on the Swearing in of U.S. District Judge Charles E. Atchley, Jr.Read the Press Release
KNOXVILLE, Tenn. – United States Attorney J. Douglas Overbey congratulates Charles E. Atchley, Jr. on his swearing in today as United States District Judge for the Eastern District of Tennessee. Before taking the judicial oath, Judge Atchley had served for more than 19 years as an Assistant U.S. Attorney in the Eastern District of Tennessee, the last three as First Assistant U.S. Attorney.
“Judge Atchley ably served our office in numerous leadership positions while skillfully handling and supervising many of the office's most complex and important matters,” said U.S. Attorney Overbey. “We are proud of his many accomplishments and are confident he will serve on the bench with integrity and distinction.”
###Rogersville Man Pleads Guilty to Firearm PossessionRead the Press Release
GREENEVILLE, Tenn. – On December 17, 2020, Thomas Ray Harris, 41, of Rogersville, also known as “Tommy Gun,” entered a guilty plea before U.S. District Judge Clifton L. Corker in Greeneville.
Harris was charged with felony possession of a firearm after being convicted of an offense punishable by a term of imprisonment exceeding one year (felon in possession of a firearm). The six-count indictment charged Harris and his co-defendant, Amanda Dawn Massengill, 34, of Rogersville, with several firearms and narcotics offenses.
The co-defendant, Amanda Massengill, previously entered a guilty plea to Count One, which charges that she possessed more than five (5) grams of methamphetamine with the intent to distribute it. Massengill is also pending sentencing before Judge Corker.
The investigation was conducted by the Hamblen County Sheriff’s Office. As a part of his plea agreement, Harris agreed to a sentence of 192 months of imprisonment followed by a 5-year term of supervised release should the Court determine that he is an Armed Career Criminal.
Assistant U.S. Attorney B. Todd Martin represented the United States in court.
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Pain Clinic Medical Providers Sentenced for Their Roles in Operating Pill Mills in TennesseeRead the Press Release
KNOXVILLE, Tenn. – On December 9 and 10, 2020, defendants Cynthia Clemons, Courtney Newman, and Holli Carmichael Womack, all of whom are nurse practitioners, were sentenced for their roles in prescribing massive quantities of opioids from pill mills in Knoxville, Tennessee. Clemons was sentenced to 42 months in prison, Newman was sentenced to 40 months in prison, and Womack received a sentence of 30 months in prison.
U.S. Attorney J. Douglas Overbey of the Eastern District of Tennessee, and Special Agent in Charge Joseph Carrico of the FBI’s Knoxville Field Office made the announcement.
Clemons and Newman, both of Knoxville, Tennessee, and Womack, of Crossville, Tennessee, were sentenced by United States District Judge Thomas A. Varlan. All three defendants were found guilty by a jury on February 13, 2020, of using drug-involved premises for the purposes of distributing opioid narcotics.
The evidence at trial proved that, collectively, Clemons, Newman, and Womack prescribed millions of tablets of oxycodone, oxymorphone, and morphine from the pill mills. All told, the pill mills where these defendants worked generated over $21 million in revenue, with a corresponding street value of $360 million. The conspiracy involved four separate clinics in Tennessee, each of which the jury determined were drug-involved premises, i.e., pill mills. The proof at trial established that the vast majority of the patients at these pill mills were addicted to opioids.
“Our office is determined to seek prison sentences for medical providers who think their licenses will protect them from prosecution,” said United States Attorney J. Douglas Overbey. “The sentences imposed by Judge Varlan should demonstrate that there will be severe consequences for illegally dispensing addictive narcotics.”
“Opioid abuse destroys lives and it devastates families. The FBI takes our responsibility to investigate those who exploit their medical license at the expense of those suffering from addiction very seriously. We, along with our federal, state, and local partners, will remain vigilant to assure that unscrupulous individuals are brought to justice,” said FBI Special Agent in Charge Joseph Carrico.
This sweeping prosecution, which has resulted in approximately 140 convictions so far, is the result of an investigation by the United States Attorney’s Office for the Eastern District of Tennessee, the Organized Crime and Gang Section, U.S. Department of Justice, and the FBI High Intensity Drug Trafficking Area (HIDTA), comprised of investigators assigned to the task force by the Loudon County Sheriff’s Office, Knoxville Police Department, Blount County Sheriff’s Office, Roane County Sheriff’s Office, Harriman Police Department, and Clinton Police Department. Other agencies provided invaluable assistance, including the Rome Attaché of the Office of International Affairs, U.S. Department of Justice, FBI’s liaison in Rome, FBI’s Miami Field Office, the Hollywood, Florida, Police Department, the United States Department of Health and Human Services, the Tennessee Department of Health, and the Drug Enforcement Administration’s Knoxville Diversion Group.
The investigation that led to this prosecution, as described above, fall under the auspices of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Assistant U.S. Attorney Tracy L. Stone, Eastern District of Tennessee, and Deputy Chief Attorney Kelly Pearson and Trial Attorney Damare Theriot, both of the Organized Crime and Gang Section, U.S. Department of Justice, represented the United States in the prosecution of this case.
Pain Clinic Medical Providers Sentenced for Their Roles in Operating Pill Mills in TennesseeRead the Press Release
Three defendants, all of whom are nurse practitioners, were sentenced to prison for their roles in prescribing massive quantities of opioids from pill mills in Knoxville, Tennessee.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney J. Douglas Overbey of the Eastern District of Tennessee, and Special Agent in Charge Joseph Carrico of the FBI’s Knoxville Field office made the announcement.
Cynthia Clemons was sentenced to 42 months in prison, Courtney Newman was sentenced to 40 months in prison, and Holli Carmichael Womack was sentenced to 30 months in prison.
Clemons and Newman, both of Knoxville, Tennessee, and Womack, of Crossville, Tennessee, were sentenced by U.S. District Judge Thomas A. Varlan. All three defendants were found guilty by a jury on Feb. 13, 2020, of using drug-involved premises for the purposes of distributing opioid narcotics.
The evidence at trial proved that, collectively, Clemons, Newman, and Womack prescribed millions of tablets of oxycodone, oxymorphone, and morphine from the pill mills. All told, the pill mills where these defendants worked generated over $21 million in revenue, with a corresponding street value of $360 million. The conspiracy involved four separate clinics in Tennessee, each of which the jury determined were drug-involved premises, i.e., pill mills. The proof at trial established that the vast majority of the patients at these pill mills were addicted to opioids.
This sweeping prosecution, which has resulted in approximately 140 convictions so far, is the result of an investigation by the U.S. Attorney’s Office for the Eastern District of Tennessee, the Criminal Division’s Organized Crime and Gang Section (OCGS), and the FBI High Intensity Drug Trafficking Area (HIDTA), comprised of investigators assigned to the task force by the Loudon County Sheriff’s Office, Knoxville Police Department, Blount County Sheriff’s Office, Roane County Sheriff’s Office, Harriman Police Department, and Clinton Police Department. Other agencies provided invaluable assistance, including the Rome Attaché of the Justice Department’s Office of International Affairs, FBI’s liaison in Rome, FBI’s Miami Field Office, the Hollywood, Florida, Police Department, the U.S. Department of Health and Human Services, the Tennessee Department of Health, and the Drug Enforcement Administration’s Knoxville Diversion Group.
Deputy Chief Attorney Kelly Pearson and Trial Attorney Damare Theriot with OCGS and Assistant U.S. Attorney Tracy L. Stone prosecuted the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former Owner of Health Care Staffing Company Indicted for Wage FixingRead the Press Release
SHERMAN, Texas – A federal grand jury returned an indictment charging Neeraj Jindal, the former owner of a therapist staffing company, for participating in a conspiracy to fix prices by lowering the rates paid to physical therapists and physical therapist assistants in north Texas, including the Dallas-Fort Worth metropolitan area, the Department of Justice announced today. The indictment also charges Jindal with obstruction of the Federal Trade Commission’s separate investigation into this conduct.
According to the two-count indictment filed in the U.S. District Court in Sherman, Texas, Jindal and his co-conspirators agreed to pay lower rates to certain physical therapists and physical therapist assistants, and Jindal’s company paid lower rates, from in or about March 2017 and continuing through in or about August 2017. Jindal is charged with participating in the conspiracy when he was the owner of a Texas-based therapist staffing company that provided in-home physical therapy services. Jindal is also charged with obstruction of proceedings before the Federal Trade Commission. According to the indictment, Jindal made false and misleading statements and withheld and concealed information during the Federal Trade Commission’s investigation to determine whether Jindal’s company or other therapist staffing companies violated Section 5 of the Federal Trade Commission Act.
“The charges announced today are an important step in rooting out and deterring employer collusion that cheats American workers — especially health care workers — of free market opportunities and compensation,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “Employers who conspire to fix the wages of workers or restrict their mobility by allocating labor markets will be prosecuted to the fullest extent of the law. The division will also continue to prosecute those who undermine the integrity of federal investigations, including proceedings before other federal agencies.”
“The integrity of the market is the foundation of our free-enterprise system,” said U.S. Attorney Stephen J. Cox for the Eastern District of Texas. “Wage-fixing agreements exploit workers by pushing down wages and eliminating competition. The Eastern District of Texas is proud to partner with the Antitrust Division in protecting the marketplace and the opportunities for American workers.”
“The FBI is committed to rooting out anti-competitive activity and corruption in our markets,” said Assistant Director Calvin Shivers of the Criminal Investigative Division. “In this case, Neeraj Jindal attempted to cheat the system and, in doing so, hurt hard-working Americans providing medical care and relief. Our International Corruption team worked creatively and diligently to investigate this crime. We are prepared to take our findings and work with our partners at the Department of Justice to ensure justice is served.”
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
A violation of the Sherman Act carries a statutory maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than $1 million. The charged obstruction offense carries a statutory maximum penalty of five years imprisonment and a $250,000 fine.
Today’s announcement is the result of a federal investigation being conducted by the Antitrust Division’s Washington Criminal I and II Sections and the International Corruption Unit of the FBI.
The charges in this case were brought in connection with the Antitrust Division’s ongoing commitment to prosecute anticompetitive conduct affecting American labor markets. Anyone with information on market allocation or price fixing by employers should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
Note: A copy of the indictment can be obtained here.
Pair Sentenced for Two Counts of Rape in the National ParkRead the Press Release
KNOXVILLE Tenn. – On December 7, 2020, Dusty William Oliver, 41, and Richard Graham, 49, both from Blaine, were sentenced by the Honorable Judge Thomas A. Varlan, in the United States District Court for the Eastern District of Tennessee at Knoxville, for raping two men in the Great Smoky Mountains National Park (GSMNP).
Oliver and Graham pleaded guilty to an indictment charging them with two counts of aggravated sexual abuse in violation of 18 U.S.C. § 2241(a) and 2. Oliver was sentenced to 300 months in prison, followed by 15 years’ supervised release. Graham was sentenced to 230 months in prison, followed by 15 years’ supervised release. Both Oliver and Graham will be required to register with state sex offender registries and comply with special sex offender conditions during their supervised release.
In June 2012 and again in November 2015, Oliver and Graham raped two different male victims in the Great Smoky Mountains National Park. The defendants preyed on homeless, drug-addicted, heterosexual males, who they believed were unlikely to report their attacks to law enforcement. After quickly befriending their victims on the roadside in Knoxville, they took the victims to the Great Smoky Mountains National Park. Each victim was tricked into hiking unfamiliar trails in pitch darkness, whereon they were raped by both defendants at once.
The defendants escaped prosecution for their crimes until a tenacious investigation by special agents with the U.S. Department of Interior National Park Service in the Great Smoky Mountains National Park developed prosecutable cases against them. "The defendants exploited vulnerable victims; however, the victims were brave enough to come forward and report their attacks. The victims’ cooperation throughout the investigation and prosecution was necessary, and I commend them for seeing it through. The hefty sentences should serve as a warning to others that one will pay heavily for committing violent crimes in our national parks," said U.S. Attorney J. Douglas Overbey.
"I want to express my thanks to ISB investigators, park rangers, and the Blount County Sheriff’s Office for their perseverance and hard work that led to the conviction and sentencing of these two men responsible for heinous crimes within the park," said Superintendent Cassius Cash. "To ensure that we’ve heard the voices of all victims, investigators continue to welcome any information about additional assaults that may be associated with Graham and Oliver."
The criminal indictment was the result of an investigation by the U.S. Department of Interior National Park Service for the GSMNP.
Assistant United States Attorney Jennifer Kolman represented the United States.
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Rocky Top Man Indicted for Oak Ridge Bank RobberyRead the Press Release
KNOXVILLE, Tenn. – A federal grand jury in Greeneville, Tennessee, returned a one count indictment on November 18, 2020 against Warren Calvin Lavender, 31, of Rocky Top, Tennessee charging him with robbing the One Bank of Tennessee Bank in Oak Ridge, Tennessee. Lavender entered a plea of not guilty to the charges in the indictment on December 3, 2020. Lavender will remain in custody pending trial, which has been set for December 28, 2020, in front of United States District Judge Travis McDonough.
Details of the robbery can be found in the criminal complaint and supporting affidavit on file with the U.S. District Court. According to the affidavit, on October 23, 2020, Lavender entered the One Bank of Tennessee Bank and passed a note to the teller demanding money.
The arrest of Lavender is the result of the joint efforts of the FBI Safe Streets Task Force, and the Oak Ridge Police Department. Assistant U.S. Attorney Cynthia F. Davidson will represent the United States in court proceedings.
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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Drug Trafficker Sentenced 210 Months for Distributing Kilograms of MethamphetamineRead the Press Release
KNOXVILLE, Tenn. – On November 30, 2020, Jairo Cruz-Rico, 37, a Citizen of Mexico, was sentenced to 210 months (17.5 years) in a federal prison by Senior United States District Court Judge Thomas W. Phillips. Cruz-Rico was a supplier of methamphetamine for a drug conspiracy that distributed hundreds of kilograms of methamphetamine in Georgia and Tennessee. Cruz-Rico had earlier pled guilty to a conspiracy to possess with the intent to distribute 50 grams or more of methamphetamine.
On April 30, 2019, Cruz-Rico was apprehended in Georgia by Homeland Security Investigations federal agents while he was on his way to deliver approximately 2 kilograms of methamphetamine. He had a gun with him in his vehicle. Cruz-Rico was a member of a far-reaching drug distribution conspiracy, which was uncovered and dismantled through an investigation led by Homeland Security Investigations and the United States Attorney’s Office for the Eastern District of Tennessee.
“This case and, more importantly, this conviction send a strong message to anyone who attempts traffic or is thinking about trafficking drugs through our highways and into our communities that you will be apprehended and prosecuted. This conviction and sentence are the result of a sweeping law enforcement effort to stem the flow of drugs from around the world that eventually end up in our communities,” said U.S. Attorney J. Douglas Overbey.
“Working with our local, state and federal law enforcement partners, HSI continues to assist in the identification and prosecution of those who participate in drug trafficking conspiracies,” said HSI Nashville Special Agent in Charge Jerry C. Templet, Jr. “Methamphetamine is a dangerous substance that destroys lives and endangers the communities that we are sworn to protect.”
This prosecution was the result of a joint investigation by the HSI Knoxville, HSI Atlanta, TBI, 9th Judicial Drug Task Force, Cumberland County Sheriff’s Office, Middle Tennessee HIDTA Task Force, and the Tennessee Highway Patrol.
The investigation is a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Assistant U.S. Attorney Kevin Quencer represented the United States.
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