Middle District of Tennessee
Press releases recorded for this federal judicial district.
YMCA of Middle Tennessee Settles Complaint Alleging Violation of the Americans with Disabilities ActRead the Press Release
NASHVILLE, Tenn. – February 19, 2020 – The YMCA of Middle Tennessee has agreed to adopt a written non-discrimination statement and institute policies to resolve Americans with Disabilities Act (ADA) allegations, announced Don Cochran, U.S. Attorney for the Middle District of Tennessee. The policies will provide a system by which children with disabilities, including Autism Spectrum Disorder (ASD), are afforded program modifications and/or auxiliary aids that will enable them to participate in YMCA’s after school programs.
The settlement resolves allegations made by the father of a child with ASD who was denied participation in the YMCA’s after school program on the basis of the child’s disability-related behavior. The complainant alleged that the YMCA failed to secure an aid for the child and asked the child not to participate in the program. As part of the settlement, YMCA has adopted a non-discrimination statement and specific written policies that require reasonable modifications, including hiring auxiliary aids if necessary, in order to provide its childcare services to children with disabilities. A designated individual from the organization will be responsible for ensuring compliance with the new policies.
Assistant U.S. Attorney Dean S. Atyia handled this matter on behalf of the United States.
2020 marks the 30th Anniversary of the Americans with Disabilities Act. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. The Justice Department will continue to use its enforcement and technical assistance tools to eliminate unlawful discrimination against individuals with disabilities.
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Cookeville Hospital Settles False Claims Act AllegationsRead the Press Release
NASHVILLE, Tenn. – February 14, 2020 – Cookeville Regional Medical Center Authority, has agreed to pay $4.1 million to settle allegations that it violated the False Claims Act (“FCA”), announced Don Cochran, United States Attorney for the Middle District of Tennessee. The alleged conduct involved payments to physicians in violation of the Anti-Kickback Statute and Stark Law.
“Federal statutes exist to protect the well-being of patients and to prevent improper influence on patient care by providers,” said U.S. Attorney Don Cochran. “The U.S. Attorney’s Office and our law enforcement partners will continue to aggressively enforce the laws designed to protect the patient and the integrity of federal healthcare programs.”
The settlement resolves allegations by the United States and State of Tennessee that from January 2012 through December 2017, Cookeville Regional Medical Center (“CRMC”), a hospital in Cookeville, Tennessee, submitted false claims for payment to the Medicare program and to TennCare as a result of violations of the Federal Anti-Kickback Statute and the Stark Law. These violations related to financial arrangements between CRMC and physicians associated with its wholly owned subsidiary physician practice, CRMC MSO-Sub 1, Inc. d/b/a Tennessee Heart.
Under the terms of the agreement, the United States will receive $3,647,155.00 and the State of Tennessee will receive $452,845.00.
“The Stark Law prohibits hospitals and physicians from entering into improper financial relationships that can disrupt the physician decision-making process,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “Our agency, working closely with our law enforcement partners, will continue to protect patients and the federal health care programs that serve them.”
“We are fortunate to have this strong relationship with our federal law enforcement partners, and continue to be diligent in pursuing false claim actions that have the potential to affect quality of our health care, in addition to costing consumers and taxpayers,” said TBI Director David Rausch.
The allegations resolved by today’s settlement were originally raised in a lawsuit filed against CRMC by a former employee who brought claims under the qui tam, or whistleblower, provisions of the FCA, which allow private citizens with knowledge of false claims to bring civil suits on behalf of the government and to share in any recovery. The whistleblower will receive $779,000 as his share of the settlement.
This matter was investigated by the Department of Health and Human Services, Office of Inspector General; the Tennessee Attorney General’s Office; the Tennessee Bureau of Investigation; and the United States Attorney’s Office for the Middle District of Tennessee. The United States is represented by Assistant U.S. Attorney Sarah K. Bogni. The claims settled by this agreement are allegations only, and there has been no determination of liability.
This case is docketed as United States ex rel. Seabury v. Cookeville Regional Medical Center Authority, d/b/a Cookeville Regional Medical Center, d/b/a Cookeville Regional Medical Group, Inc., f/k/a CRMC MSO, Inc., d/b/a CRMC MSO Sub-1, Inc., d/b/a Tennessee Heart, Civ. Action No. 2:15-cv-00065 (M.D. Tenn.).
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Former Tennessee State University Employee Pleads Guilty in Federal Student Loan Fraud SchemeRead the Press Release
NASHVILLE, Tenn. – February 13, 2020 – Renauld Clayton, 32, of Chicago Illinois, formerly of Nashville, pleaded guilty yesterday in U.S. District Court to student loan fraud, aggravated identity theft and wire fraud, announced U.S. Attorney Don Cochran for the Middle District of Tennessee. Clayton was indicted in May 2019 after an investigation determined that he had fraudulently received and misappropriated $84,500 in student loan payments.
During the plea hearing, Clayton admitted that during 2014-2015, while employed in the admissions office of Tennessee State University (TSU), he obtained the personal identifying information of TSU students and others and applied for student loans in their names. When the funds were received, Clayton diverted the money to his personal bank account, depositing more than $60,000 during this time for his personal use.
Clayton faces a mandatory minimum of two years in prison and up to 20 years when he is sentenced on June 19, 2020.
This investigation was conducted by the U.S. Department of Education and the U.S. Secret Service, following an internal audit by TSU. Assistant U.S. Attorneys Sara Beth Myers and Kathryn W. Booth are prosecuting the case.
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U.S. Attorney Statement on the Actions Announced Today by the Department of Justice Against Sanctuary City JurisdictionsRead the Press Release
NASHVILLE, Tenn. – February 10, 2020 – U.S. Attorney Don Cochran issued the following statement:
“Today, Attorney General William Barr announced significant actions the Justice Department is undertaking involving several jurisdictions around the country alleging that the policies of these cities and states interfere with lawful federal immigration and enforcement activities and jeopardize public safety. I applaud the actions of Attorney General Barr and join with him in our quest to make America’s cities safer.
I am grateful that the State of Tennessee enacted a law last year, which prohibits local jurisdictions from enacting sanctuary city policies. The misguided attempts and efforts of a few to provide sanctuary for illegal aliens would have placed our communities in grave danger and severely hampered the efforts of law enforcement to protect our communities from preventable criminal acts.
Recent and past examples where dangerous, illegal aliens were removed from our communities and prosecuted by my office during the last year include:
- Douglas Benitez Herrera, of Honduras, was charged with illegal re-entry into the United States after having been deported in 2015 following convictions for first degree manslaughter, robbery, aggravated assault and other aggravated felonies.
- Juan Hernandez-Moreno, a citizen of Mexico, was charged with illegal re-entry, after being arrested in Clarksville for domestic assault. Hernandez-Moreno had previously been convicted and deported after having been arrested on numerous occasions for domestic violence offenses.
- Cuauhtemoc Serafin-Benitez, a citizen of Mexico, was charged with illegal re-entry after having been previously deported five times. In 2014 he was convicted in U.S. District Court, in Nashville, of conspiracy to distribute five kilograms or more of cocaine.
- Carlos A. Vaquerano-Rodriguez was charged with illegal re-entry after being arrested in Nashville for aggravated assault and robbery, while brandishing a machete. He had previously been charged in California with serious crimes including robbery, aggravated assault and having sex with a minor. He had also been previously deported.
- Gerson Serrano-Ramirez, a previously deported illegal alien and MS-13 gang member from El Salvador, was convicted by a jury of torturing a witness, multiple firearms violations and multiple cocaine distribution charges. Serrano-Ramirez was sentenced last year to 19 years in prison.
- Angel Daniel-Garcia, of Mexico, twice previously deported and convicted of armed robberies, was indicted last fall and is facing new firearm and drug offenses.
- Franklin Pineda-Caceras, of Honduras, previously deported in 2018, was indicted last fall for illegally re-entering the United States and firearms and drug distribution crimes. He is also accused of kidnapping a local high school student and attempting to force the student to join the MS-13 gang.
- Oscar Degaldo Flores, of El Salvador, and Luis Colindres, of Honduras, also MS-13 gang members, were charged in 2018 with conspiracy; witness tampering; firearms offenses and causing death through the use of a firearm. They are accused of killing one individual and then killing another individual to prevent them from testifying.
- Jose Lopez-Ruiz, an illegal alien from Guatemala was charged last year with illegally re-entering the United States. Lopez-Ruiz had previously been deported seven times and had been convicted of five DUI offenses, with a sixth DUI charge pending.
These are but a few examples of cases in the Middle District of Tennessee where serious crimes have been committed by persons who were in this country illegally. Without the cooperation of our local, state and federal law enforcement partners, it is highly likely that other innocent people would have been subjected to acts of intimidation, torture, and even murdered; more illicit and addictive drugs would have flowed into our neighborhoods; more businesses would have been robbed; other women and children would have been assaulted by an abusive partner; and thousands of motorists would have had to navigate our roadways with another drunk driver.
Sanctuary jurisdiction policies jeopardize public safety by preventing the federal government from locating, arresting, and prosecuting removable aliens inside the United States. I am grateful for the cooperative spirt of our law enforcement partners in the Middle District of Tennessee. Just as it is with all other investigations, we are only able to achieve the best outcomes when we all work together. Anything less hampers our prevention and enforcement efforts.”
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Nashville Man Convicted of Sex-Trafficking 12-Year-Old RunawayRead the Press Release
NASHVILLE, Tenn. – February 7, 2020 – Tavarie Williams, 40, of Nashville, was convicted yesterday by a federal jury of sex trafficking a minor and transportation of a minor for the purpose of engaging in prostitution and criminal sexual activity, announced U.S. Attorney Don Cochran for the Middle District of Tennessee. The jury found Williams not guilty of a third count of being a convicted felon in possession of a firearm, after the week-long trial.
According to evidence and testimony at trial, in June and July 2016, Williams picked up a 12-year old runaway girl in San Antonio, Texas and posted ads on Backpage.com advertising her for prostitution. During this time, Williams transported the girl to Memphis, Nashville and Knoxville, Tennessee for the purpose of having sex with Backpage clients. Evidence and testimony also established the Williams engaged in sexual intercourse with the 12-year-old as well.
On July 29, 2016, Williams was arrested at a hotel in Franklin, Tennessee and the 12-year-old was rescued.
Williams faces a mandatory minimum sentence of 15 years and up to life in prison when he is sentenced later this year.
This case was investigated by the Tennessee Bureau of Investigation; The U.S. Marshals Service; the Franklin Police Department; and the Williamson County Sheriff’s Office. Assistant U.S. Attorneys Juliet Aldridge and Brooke Schiferle prosecuted the case.
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U.S. Attorney Don Cochran Urges Congress to Extend Emergency Scheduling of Fentanyl AnaloguesRead the Press Release
NASHVILLE, Tenn. – January 28, 2020 – The emergency prohibition of fentanyl analogues expires on February 6 without congressional action. Fentanyl and its analogues are responsible for thousands of overdose deaths in Tennessee and we are among the states with the highest number of overdose deaths in the nation. Without action by Congress, my colleagues and I will not have the tools we need to protect Tennessee families from the onslaught of these extraordinarily dangerous substances.
Initially originating from China in smaller quantities, Tennessee, like many states across our nation, has seen a transition in the source of fentanyl making its way into our communities. In a dangerous turn of events, law enforcement officials are now intercepting load after load of Mexican cartel-produced fentanyl. The cartels are using their established and prolific distribution networks to deliver fentanyl – a substance that is exponentially more dangerous than both methamphetamine and heroin.
Just four days ago, officers with the Metropolitan Nashville Police Department recovered nearly 12 pounds of fentanyl from a vehicle travelling on an interstate near Downtown Nashville and earlier this month, more than ¼ pound of fentanyl was seized from a home in a Sumner County neighborhood. This substance is so lethal that only a few grains can be deadly. We continue to be very aggressive in prosecuting these cases and just today announced the indictments of nine individuals in the Clarksville, Tennessee area who are charged in a conspiracy to distribute heroin/fentanyl.
According to recent data, by the end of the third quarter of 2019, the number of overdose deaths in Nashville had already escalated to make it the deadliest year on record with 337 deaths. This is three times the number of overdose deaths just three years ago and the majority of these deaths involved fentanyl. The number of instances by first responders of Narcan deployment to reverse the overdose effects is also escalating at an alarming rate. We must take every available action to reverse this deadly epidemic and we must act now.
I am urging Congress to give us the tools we need to continue our efforts against the distribution of fentanyl and its analogues here in Tennessee. This fight is far from over. We need every tool we have to target this dangerous drug. Congress must take action immediately to extend the scheduling of these dangerous substances.
Background: In an effort to combat this deadly drug epidemic, DEA issued a temporary emergency two-year order in February 2018 that made all fentanyl-related substances illegal. Our country has seen a marked supply impact from DEA’s temporary scheduling of fentanyl-related substances during the past two years, with a 50 percent decrease in fentanyl-related substances encountered across the United States. However, DEA’s emergency authority expires at midnight on February 6, 2020, unless Congress acts to extend it.
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Nine Indicted in Clarksville Drug Distribution ConspiracyRead the Press Release
NASHVILLE, Tenn. – January 28, 2020 – Nine persons have been indicted by a federal grand jury and charged with conspiracies to distribute heroin, fentanyl and cocaine in the Clarksville, Tennessee area, announced U.S. Attorney Don Cochran for the Middle District of Tennessee. The indictments, the last of which were unsealed today, are the result of a joint investigation by local, state and federal law enforcement agencies, which began in 2018 after a series of overdoses, including overdose deaths in the area.
The indictments were returned on December 19, 2019, after the investigation resulted in a number of controlled buys by law enforcement and the subsequent seizure of additional quantities of heroin, fentanyl, cocaine and marijuana; several firearms; and drug paraphernalia used in the packaging and distribution of illegal drugs.
According to the indictments and other documents filed with the court, the conspiracy at times involved the distribution of more than one kilogram of heroin, causing bodily injury to another, by one or more of the defendants and more than 40 grams of fentanyl and more than 100 grams of heroin and fentanyl, by others, in the Clarksville area, including Springfield, Tennessee and Oak Grove, Kentucky. Court documents also indicate that one or more of the defendants may have been responsible for the distribution of more than 50 kilograms of heroin.
If convicted, the defendants face a minimum of five years and some face up to life in prison.
Those charged are:
Crystal Fruin, 32; Conley Johnson, 31; Colin McClain, 36; Delvin Samuels, 31; Randolph Scott, 36; Joshua Shandle, 30; Christopher Strickland, 48, all of Clarksville; and Tranisha Mitchell, 38, and Dewayne Strickland, 50, both of Detroit, Michigan.
All defendants are in custody with the exception of Colin McClain and Conley Johnson. They are fugitives and remain at large. Anyone with information on their whereabouts should call the Clarksville Police Department at 931-648-0656 or the ATF at 615-565-1400.
This case is being investigated by the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms & Explosives; the Tennessee Bureau of Investigation; the Clarksville Police Department; the Montgomery County Sheriff’s Office; the 19th Judicial District Drug Task Force; the Oak Grove, Kentucky Police Department; and the Christian County Kentucky Sheriff’s Department.
An indictment is merely an accusation. All defendants are presumed innocent until proven guilty in a court of law.
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Nashville Man Sentenced to 45 Years in Federal Prison for Child Exploitation CrimesRead the Press Release
NASHVILLE, Tenn. – January 17, 2020 – Cecil Clint Woodard, 42, of Nashville, Tennessee, was sentenced yesterday by U.S. District Court Judge Eli J. Richardson to 45 years in federal prison for child pornography offenses, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Woodard was charged in a 22-count indictment in August 2017 and pleaded guilty in January 2019 to 14 counts of production of child pornography; 6 counts of transportation of child pornography and 1 count of possession of child pornography.
According to court documents, during April through June 2016, Woodard subjected a 3-year-old child to multiple acts of sexual abuse, including rape. While committing these acts, at his Nashville home on 14 separate occasions, Woodard recorded over 300 sexually explicit images and produced more than 20 videos of this child and distributed it on the internet on numerous occasions.
Woodward was arrested on June 11, 2016, by officers with the Metropolitan Nashville Police Department and was in possession of other images and videos that he collected from the Internet that depicted other minors engaged in sexually explicit conduct. Court records also illustrate that Woodard had previously sexually molested another child while she was between nine and 12 years of age and on other occasions he pretended to be a 15-16 year-old male while online, in an attempt to secure more sexually explicit images of children.
This case was investigated by the Metropolitan Nashville Police Department and the FBI. Assistant U.S. Attorney S. Carran Daughtrey prosecuted the case.
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North Carolina Man Convicted of Traveling to Nashville to Have Sex with 15 Year-Old Sentenced to 26 1/2 Years in PrisonRead the Press Release
NASHVILLE, Tenn. – January 14, 2020 – James Frei, 50, of Union Mills, North Carolina, was sentenced yesterday to 26 ½ years in prison for child exploitation and sex crimes, announced U.S. Attorney Don Cochran for the Middle District of Tennessee. A federal jury in February 2019, found Frei guilty of four counts of production of child pornography, one count of enticing a minor to engage in sexual conduct, two counts of traveling in interstate commerce for the purpose of engaging in illicit sexual conduct with a minor, and one count of transporting child pornography.
According to evidence and testimony at trial, in July 2016, the National Center for Missing and Exploited Children (NCMEC) received a cyber-tip from Facebook regarding an adult male engaging in sexually explicit conversations with a minor female, later identified as a 15 year-old living in Nashville. The conversations indicated that the adult may have already traveled to Nashville to have sex with the minor female. This information was relayed to the Metropolitan Nashville Police Department (MNPD) for further investigation.
A MNPD detective identified and interviewed the minor and learned that she had met the man, later identified as Frei, in May 2016 through a teen chat room on Facebook and that he had traveled to Nashville multiple times in May 2016 and went to her house after her father had left for work, where they engaged in sexual activity. The minor female was then driven to a nearby park where they again engaged in sexual activity. Frei returned to Nashville for a few days in June 2016 and on two occasions, he took the minor to a hotel near the airport and engaged in sexual activity. The detective also learned that Frei had recorded the sexual encounters with his cell phone.
A subsequent search warrant served at Frei’s North Carolina home resulted in the seizure and forensic examination of his cell phone, which was found to contain numerous images and videos of him engaging in sex with the minor female and over 500 images and videos of child pornography. The investigation also determined that Frei had been downloading child pornography for approximately 10 years and had participated in hundreds of conversations with underage children, which were sexual in nature. Frei had previously been convicted of criminal offenses involving minors in the states of North Carolina and Michigan.
This case was investigated by the Metropolitan Nashville Police Department and prosecuted by Assistant U.S. Attorneys Katy Risinger and Christopher Suedekum.
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Mid-State Physician Charged in $7 Million Healthcare Fraud ConspiracyRead the Press Release
NASHVILLE, Tenn. – January 14, 2020 – James L. Crabb, M.D., 78, of Loretto, Tennessee, is facing federal charges for his role in a $7 million healthcare fraud conspiracy, announced U.S. Attorney Don Cochran for the Middle District of Tennessee. Crabb was charged in a criminal Information on December 20, 2019, and appeared before a U.S. Magistrate Judge yesterday.
According to the charging document, Crabb is a medical doctor, licensed to practice in the states of Tennessee and Mississippi, and operated as a consulting provider to a Florida-based telehealth and marketing company and a physician staffing company located in Georgia. As an enrolled and participating provider in Medicare, Crabb obtained access to Medicare patients through these companies, which recruited patients through advertising and telemarketing, regardless of medical necessity.
Part of the conspiracy involved unsigned orders and prescriptions for Durable Medical Equipment, which Crabb received from these companies and others. Crabb signed the orders and prescriptions in the absence of any pre-existing doctor-patient relationship and without a physical examination as required by Medicare. The charges also allege that Crabb frequently signed orders and prescriptions based only on a brief telephonic conversation or no conversation at all with the Medicare beneficiary. In other instances, Crabb assigned the signing of his name to an unlicensed assistant and paid this individual cash for each prescription signed – also impermissible under Medicare regulations. Crabb also signed orders and prescriptions for patients located in states where he was not licensed.
The Information alleges that during the period of February 2015 through August 2019, James Crabb and others caused the submission of approximately $7 million in false and fraudulent claims to Medicare. The prescribed DME was not medically necessary, was not provided as represented and not eligible for reimbursement, including because the orders and prescriptions were procured through the payment of kickbacks and bribes. The Information also contains a forfeiture allegation in the amount of $493,780.00 – the amount Crabb received in kickbacks resulting from the scheme.
Crabb made his initial appearance before a U.S. Magistrate Judge in Nashville yesterday and was released with certain conditions, including that he not be allowed to practice medicine.
If convicted, Crabb faces up to 10 years in prison and a $250,000 fine.
This case is being investigated by the U.S. Department of Health & Human Services-Office of Inspector General. Assistant U.S. Attorney Sarah K. Bogni is prosecuting the case.
The charge is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
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Former Supervisory Corrections Officer Convicted of Unlawful Force for Repeatedly Tasing Restrained DetaineeRead the Press Release
After a four-day trial on civil rights and obstruction charges, a federal jury returned a verdict for Mark Bryant, formerly a Corporal at the Cheatham County Jail in Ashland City, Tennessee. Bryant was convicted of two counts of deprivation of rights under color of law, in violation of Title 18, United States Code, Section 242, for repeatedly tasing a restrained pretrial detainee. The jury acquitted Bryant of two counts of obstruction of justice and one count of lying to the FBI.
“Correctional officers who use unlawful force and cause bodily injury to detainees will be held accountable for their illegal actions,” said Assistant Attorney General Eric Dreiband. “The Department of Justice will continue to vigorously prosecute matters that violate civil rights laws.”
“The defendant’s conduct in this case was detestable and offensive to every law enforcement officer who honors the badge,” said U.S. Attorney Cochran. “I want to thank the trial team and our law enforcement partners at the FBI for their outstanding efforts to ensure that this individual was brought to justice.”
“Citizens have a constitutional right to ethical treatment by employees of federal, state, and local government," said M.A. Myers, Special Agent in Charge of the Memphis Division of the FBI. "This conviction should be a reminder that wearing a badge does not make one above the law. The FBI will always work to bring to justice those who violate the civil rights of others."
Evidence presented at trial established that, on Nov. 5, 2016, then-Corporal Bryant repeatedly tased – for a total of 50 seconds – an eighteen-year-old pretrial detainee in a restraint chair, and then returned more than an hour later to again tase the detainee, while the detainee was compliant and fully restrained. As a result of Corporal Bryant’s unjustified uses of force, the detainee suffered bodily injury.
Sentencing will take place at a later date before U.S. District Judge Waverly D. Crenshaw at which time Bryant will face a maximum sentence of 10 years in prison on each charge as well as three years of supervised release, and a fine of up to $250,000.
The investigation was conducted by the FBI, and the case was tried by Assistant U.S. Attorney Sara Beth Myers of the Middle District of Tennessee’s Nashville Office and Civil Rights Division Trial Attorney Michael J. Songer.
Former Cheatham County Supervisory Corrections Officer Convicted of Using Unlawful ForceRead the Press Release
NASHVILLE, Tenn. – January 13, 2020 - After a four-day trial on civil rights and obstruction charges, a federal jury on Friday evening returned a verdict for Mark Bryant, formerly a Corporal at the Cheatham County Jail in Ashland City, Tennessee. Bryant was convicted of two counts of deprivation of rights under color of law for repeatedly using a Taser on a restrained pretrial detainee. The jury acquitted Bryant of two counts of obstruction of justice and one count of lying to the FBI.
“The defendant’s conduct in this case was detestable and offensive to every law enforcement officer who honors the badge,” said U.S. Attorney Cochran. “I want to thank the trial team and our law enforcement partners at the FBI for their outstanding efforts to ensure that this individual was brought to justice.”
“Correctional officers who use unlawful force and cause bodily injury to detainees will be held accountable by the Civil Rights Division,” said Assistant Attorney General Eric Dreiband. “The Department of Justice will continue to prosecute matters that involve the violation of our civil rights laws.”
“Citizens have a constitutional right to ethical treatment by employees of federal, state, and local government," said M.A. Myers, Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation. "This conviction should be a reminder that wearing a badge does not make one above the law. The FBI will always work to bring to justice those who violate the civil rights of others."
Evidence presented at trial established that, on Nov. 5, 2016, then-Corporal Bryant repeatedly tased – for a total of 50 seconds – an 18-year-old pretrial detainee in a restraint chair, and then returned more than an hour later to again tase the detainee, even though he was compliant and fully restrained. As a result of Bryant’s unjustified uses of force, the detainee suffered bodily injury.
Bryant will be sentenced later this year before U.S. District Judge Waverly D. Crenshaw. He faces a maximum sentence of 10 years in prison on each count and a fine of up to $250,000.
The investigation was conducted by the Federal Bureau of Investigation and the case was tried by Assistant U.S. Attorney Sara Beth Myers of the Middle District of Tennessee and Civil Rights Division Trial Attorney Michael J. Songer.
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Clarksville Man Who Shot at Police Officers Pleads Guilty to Federal Firearms ChargeRead the Press Release
NASHVILLE, Tenn. – January 8, 2020 – – Elique Camacho, 22, of Clarksville, Tennessee, pleaded guilty yesterday in U.S. District Court to possessing a firearm after being convicted of a crime of domestic violence, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Camacho was indicted in July 2018, after an incident on June 24, 2018, where Clarksville police officers were called to the scene of a domestic assault and upon arrival, Camacho was attempting to leave the scene. As officers approached his vehicle, Camacho drove toward them and struck one of the officers with his vehicle and fled. As Clarksville officers pursued Camacho, he fired several rounds at the officers from his vehicle. One of the officers subsequently rammed and disabled Camacho’s vehicle, after which, he fled on foot and hid in a wooded area overnight, before being arrested the following day at a friend’s house. At the time of his arrest, Camacho was in possession of a 9mm handgun.
Camacho had previously been convicted of domestic assault in January 2017 and was prohibited from possessing a firearm.
The plea agreement calls for Camacho to receive a sentence of 10 years in prison when he is sentenced on May 18, 2020.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Clarksville Police Department. Assistant U.S. Attorney Brooke Schiferle is prosecuting the case.
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Largest Independent Provider of Intraoperative Neuromonitoring Services to Hospitals Agrees to Pay $1.9 Million to Settle Fraud AllegationsRead the Press Release
NASHVILLE, Tenn. – December 30, 2019 – Medsurant Holdings, LLC, of West Conshohocken, Pennsylvania, has agreed to pay $1.9 million to settle the United States’ allegations that it had violated the False Claims Act, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Mesurant Holdings, which operates under the trade name Medsurant Health, is the largest independent provider of Interoperative Neuromonitoring (IONM) services to hospitals and surgeons in the United States. IONM includes various procedures that are used during surgery to monitor a patient’s nervous system in real-time during high-risk surgeries involving the peripheral nervous system, brain and spinal cord.
The settlement resolves the United States’ claims that, from January 1, 2013, through May 31, 2016, Medsurant billed Medicare for units of IONM services without regard to concurrent IONM services that it was providing to patients insured by payors other than Medicare, and that Medsurant billed Medicare for IONM services that were not provided “exclusively to one patient,” as required by Medicare regulations.
This case was handled by the United States Attorney’s Office for the Middle District of Tennessee and investigated by the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Mark H. Wildasin represented the United States.
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Four Men Sentenced to More Than 100 Years in Prison, Collectively, for Violent Crime in Nashville Public HousingRead the Press Release
NASHVILLE, Tenn. – December19, 2019 – Four Nashville men were sentenced to federal prison last week by Chief U.S. District Judge Waverly D. Crenshaw, Jr., for their roles in violent crime incidents connected to Nashville public housing developments, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
The four men were found responsible for a murder, multiple armed robberies and home invasions, shootings, and illegal firearms possession connected to the JC Napier public housing development in Nashville in 2015.
Aweis Haji-Mohamed, aka Son Son, 31, previously pleaded guilty and was sentenced to 35 years in prison. He was responsible for committing three armed robberies, including a robbery of Isaiah Starks a/k/a Blue, in the J.C. Napier Homes public housing development, and later shot and killed Starks in February 2015. He also committed other shootings, including in January 2015, at a home in east Nashville that was occupied by women and children, including a disabled child. Haji-Mohamed fired several shots during that incident as part of an ongoing dispute relating to a stolen gun. Prior to these incidents, Haji-Mohamed had been ordered deported to his home country, Somalia, from the United States and was under an order of supervision by U.S. Immigration and Customs Enforcement.
Marquis Brandon aka Dummy, 25, was sentenced to 25 years in prison after being convicted at trial in April 2018, of illegal firearms possession and committing an armed home invasion. In January 2015, Brandon entered a home in north Nashville and hoisted a male occupant onto the wall while brandishing a pistol. He took cash and a MAC-10 type firearm in that home invasion which he committed with Santez Bradford. At sentencing, Brandon was found responsible for committing other commercial robberies, including the armed robbery of a Cricket Wireless store near the J.C. Napier community with Haji-Mohamed in January 2015; an armed robbery of a Shell gas station in which he fired shots at a clerk the following week; and a robbery at a north Nashville home construction site in which two construction workers were shot in February 2015. One of the victims was shot in the throat and the other was permanently paralyzed from the shooting. Brandon was found to have threatened potential witnesses and also provided Haji-Mohamed the pistol which Haji-Mohamed used to murder Starks.
Santez Bradford a/k/a Wacco, 25, previously pleaded guilty and was sentenced to 22 ½ year in prison for illegal firearms possession and the January 2015 home invasion, which he committed with Brandon. During that home invasion, Bradford forced a man to his knees at gun point and threatened to shoot him. He was also responsible for shooting at a group of people at close range in the J.C. Napier area in December 2014 and attempted to prevent a victim whom he had tried to rob from testifying against him.
Charles Braden, aka Manstinka, 26, also pleaded guilty and was sentenced to 22 years in prison for illegal firearms possession; two drug-related robberies which he committed with Haji-Mohamed in January 2015; and committing an armed home invasion in the J.C. Napier community in March 2015. In that home invasion, Braden targeted a residence he believed would contain a substantial amount of drugs, which he planned to take, but invaded the wrong home while he was high on heroin. Braden terrorized the occupants, and threatened to kill a man, two women, and several young children who lived in that home. He was found responsible for attempting to tamper with one of the victims of that home invasion. Braden was later arrested after being wounded in a shootout in the J.C. Napier community in March 2015.
The multi-year investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Metropolitan Nashville Police Department. Assistant United States Attorney Sunny A.M. Koshy prosecuted the cases. More than 70 individuals have been convicted in the probe since 2015.
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Nashville Woman Arrested with Four Kilograms of Fentanyl at Nashville Bus StationRead the Press Release
NASHVILLE, Tenn. – December 18, 2019 – Jennifer Montejo, 31, of Nashville, was charged in a criminal complaint on December 12, 2019, with possession with intent to distribute 100 grams or more of heroin and 400 grams or more of fentanyl, announced United States Attorney Don Cochran for the Middle District of Tennessee.
According to the criminal complaint, Montejo and others had been previously identified as targets in a drug trafficking investigation in the Nashville area and at a state prison. Montejo was arrested on December 11, 2019, at a Nashville bus station as she was returning from California, after purchasing a one-way airline ticket to Los Angeles, days earlier. Approximately four kilograms of a substance believed to contain fentanyl, and about one kilogram of a substance believed to be heroin were discovered in Montejo’s luggage.
Montejo was on bond for state drug charges in Dickson County, Tennessee, which resulted from an incident in July 2019, where the Tennessee Highway Patrol stopped Montejo on Interstate 40 as she was travelling from California, and subsequently found approximately ¾ of a kilogram of pills containing fentanyl, about one kilogram of heroin, and three firearms.
If convicted, Montejo faces a minimum of 10 years and up to life in prison,
The arrest is part of an ongoing investigation into substantial drug trafficking which is allegedly being coordinated by a state prisoner. That investigation is being conducted by the U.S. Postal Inspection Service, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Internal Revenue Service – Criminal Investigation Division, the Tennessee Department of Corrections – Office of the Inspector General, the Metropolitan Nashville Police Department, and other partner agencies. The case is being prosecuted by Assistant United States Attorney Sunny A.M. Koshy.
The defendant is presumed innocent until proven guilty in a court of law.
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Four Gangster Disciples Sentenced Following Seven-Week Jury TrialRead the Press Release
NASHVILLE, Tenn., – December 3, 2019 – Following a seven-week jury trial in U.S. District Court earlier this year, a federal jury convicted five members of the Gangster Disciples of multiple counts relating to a racketeering conspiracy and a drug distribution conspiracy, which plagued the Clarksville, Tennessee area with violence and murders for more than a decade, announced U.S. Attorney Don Cochran for the Middle District of Tennessee and Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.
Marcus Termaine Darden, aka, “Tuff,” 41, and Elance Justin Lucas, aka, “Mac Luke,” 30, both of Guthrie, Kentucky; Derrick Lamar Kilgore, aka, “Smut,” 35, and DeCarlos Titington, aka, “Los,” 44, both of Clarksville, Tennessee, were convicted at trial.
Following sentencing hearings that began last week and concluded today, Chief U.S. District Judge Waverly D. Crenshaw, Jr. sentenced Darden, Kilgore, Titington and Lucas to 40 years, 35 years, 22.5 years, and 20 years in prison, respectively.
Of the 12 individuals charged in this conspiracy, five previously pleaded guilty, including Rex Whitlock, aka “Stackhouse,” 34, of Clarksville, who was sentenced in January to 30 years in federal prison, and Lorenzo Brown, aka “Zo,” of Murfreesboro, Tennessee, who was sentenced in November to 15 years in federal prison. According to evidence and testimony at trial, the defendants are all members of the Gangster Disciples, a criminal organization that originated in Chicago and spread through the midwestern and eastern United States. During a portion of the conspiracy, Marcus Darden was the “regent” of the “615 region” of the Gangster Disciples, making him the highest-ranking member of the gang in the middle Tennessee area. In that role, Darden exercised control over Gangster Disciples activities in Clarksville, Nashville, Murfreesboro, and Gallatin, among other cities. Darden also reported to a statewide “governor” of the Gangster Disciples.
Members of the Gangster Disciples criminal enterprise engaged in acts of violence including murder, attempted murder, witness intimidation, and obstruction of justice. These members also sold powder cocaine, crack cocaine, marijuana, and other controlled substances, and exercised control over certain territories in Clarksville. As part of the conspiracy, each defendant agreed that a member would commit at least two acts of racketeering activity for the Gangster Disciples.
The evidence at trial proved that the defendants and other members of the Gangster Disciples murdered members of the rival Bloods gang in Clarksville, including Jessie Hairston in September 2007. The evidence also showed that, in January 2006, and as part of the Gangster Disciples’ effort to consolidate power in Clarksville, Marcus Darden shot a rival Crips gang member, who was life-flighted to Vanderbilt Medical Center for treatment. In December 2007 Darden also shot an unarmed person in the parking lot of a nightclub because that individual had “disrespected” him. These defendants were also responsible for a drive-by shooting in Clarksville in August 2014 targeting members of the rival Vice Lords gang. During this shooting, members of the Gangster Disciples, including Derrick Kilgore, rode through a residential neighborhood and began firing AK-47 style assault weapons. During this incident, four innocent bystanders, including a 16-year-old, were struck by gunfire and were transported to a local hospital for treatment. One woman was shot three times in the abdomen and suffered serious, lifethreatening injuries.
DeCarlos Titington also attempted to shoot and kill two members of the rival Vice Lords gang after a brawl inside a convenience store in Clarksville in December 2014. During this incident, Titington fired 14 rounds from a Glock semi-automatic handgun, striking a vehicle occupied by rival Vice Lord gang members. Titington pleaded guilty to this conduct in state court, and although he was acquitted of federal attempted murder in aid of racketeering charges in connection with this conduct, he was convicted on a racketeering conspiracy charge which encompassed this conduct.
These violent acts were intended to further the gang’s activities and maintain and increase a member’s position within the organization. Evidence at trial also established that the defendants engaged in witness intimidation through violence or threats of violence, and prevented or deterred individuals from cooperating with law enforcement. Additionally, the government introduced evidence and testimony showing that law enforcement officers conducted undercover buys of cocaine and crack cocaine from Darden, Burks, Kilgore and Lucas between 2010 and 2015. During this investigation, law enforcement also seized numerous firearms, controlled substances, and other contraband.
This extensive investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Tennessee Bureau of Investigation; the Montgomery County Sheriff’s Office; the Clarksville Police Department; the Rutherford County Sheriff’s Office; the Murfreesboro Police Department; the Gallatin Police Department; the Kentucky State Police; the 19th Judicial District Drug Task Force; and the Hopkinsville, Kentucky Police Department. Assistant United States Attorney Ben Schrader of the Middle District of Tennessee and Trial Attorneys Shauna Hale and Ivana Nizich of the Criminal Division’s Organized Crime and Gang Section, are prosecuting the case.
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Former Tennessee Medical Doctor Pleads Guilty to Unlawfully Distributing Controlled SubstancesRead the Press Release
NASHVILLE, Tenn. – December 2, 2019 – Darrel R. Rinehart, M.D., 64, of Indianapolis, Indiana, formerly of Columbia, Tennessee, pleaded guilty today to one count of unlawful distribution of controlled substances, announced U.S. Attorney Don Cochran of the Middle District of Tennessee, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Atlanta Field Office and Director David B. Rausch of the Tennessee Bureau of Investigation (TBI).
Rinehart admitted today that in January 2016 he knowingly distributed hydrocodone, a Schedule II controlled substance, to a patient who did not have any significant underlying health issues justifying such a prescription. He further admitted to distributing Schedule II controlled substances, primarily opioids, to four different patients without a legitimate medical purpose and outside the course of professional practice on 18 other occasions between December 2014 and December 2015.
The HHS-OIG, TBI and the District Attorney General for the Tennessee’s 22nd Judicial District investigated the case. Assistant Chief Kilby Macfadden and Trial Attorney William M. Grady of the Criminal Division’s Fraud Section are prosecuting the case.
Rinehart will be sentenced on July 30, 2020, by Chief U.S. District Judge Waverly D. Crenshaw, Jr. He faces up to 20 years in prison and up to a $1 million fine.
The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 70 defendants who are collectively responsible for distributing more than 40 million pills. The Health Care Fraud Unit, in general, maintains 15 strike forces operating in 24 districts, and has charged nearly 4,200 defendants who have collectively billed the Medicare program for more than $15 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
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Tennessee Emergency Medical Doctor Pleads Guilty to Unlawfully Distributing Controlled SubstancesRead the Press Release
A Tennessee emergency medical doctor pleaded guilty today for his role in unlawfully distributing controlled substances.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Don Cochran of the Middle District of Tennessee and Acting Special Agent in Charge Daniel D. Dodds of the Drug Enforcement Administration’s (DEA) Louisville Division made the announcement.
Lawrence J. Valdez, M.D., 50, of Hendersonville, Tennessee, pleaded guilty to one count of unlawful distribution of controlled substances before U.S. District Judge Eli J. Richardson of the Middle District of Tennessee. Sentencing has been scheduled for April 3, 2020, before Judge Richardson.
Pursuant to his guilty plea, Valdez admitted that in February 2017 he knowingly distributed oxymorphone, a Schedule II controlled substance, to a patient without a legitimate medical purpose and outside the usual course of professional practice. He further admitted to distributing Schedule II opioids to four different patients without a legitimate medical purpose and outside the course of professional practice on 16 other occasions between June 2016 and February 2017, and in exchange for sexual intercourse and other sexual acts with those patients.
The DEA, Tennessee’s 18th Judicial Drug Task Force and the District Attorney General’s Office for Tennessee’s 18th Judicial District investigated the case. Assistant Chief Kilby Macfadden and Trial Attorneys Anthony J. Burba and William M. Grady of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 70 defendants who are collectively responsible for distributing more than 40 million pills. The Health Care Fraud Unit, in general, maintains 15 strike forces operating in 24 districts, and has charged nearly 4,200 defendants who have collectively billed the Medicare program for more than $15 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
Mid-State Emergency Medical Doctor Pleads Guilty to Unlawfully Distributing Controlled SubstancesRead the Press Release
NASHVILLE, Tenn. – November 25, 2019 – Lawrence J. Valdez, M.D., 50, of Hendersonville, Tennessee, pleaded guilty today to one count of unlawful distribution of controlled substances, announced U.S. Attorney Don Cochran of the Middle District of Tennessee, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, and Acting Special Agent in Charge Daniel D. Dodds of the Drug Enforcement Administration’s (DEA) Louisville Division.
Valdez admitted today that in February 2017 he knowingly distributed oxymorphone, a Schedule II controlled substance, to a patient without a legitimate medical purpose and outside the usual course of professional practice. He further admitted to distributing Schedule II opioids to four different patients without a legitimate medical purpose and outside the course of professional practice on 16 other occasions between June 2016 and February 2017, and in exchange for sexual intercourse and other sexual acts with those patients.
The DEA, Tennessee’s 18th Judicial Drug Task Force and the District Attorney General’s Office for Tennessee’s 18th Judicial District investigated the case. Assistant Chief Kilby Macfadden and Trial Attorneys Anthony J. Burba and William M. Grady of the Criminal Division’s Fraud Section are prosecuting the case.
Valdez faces up to 20 years in prison and up to a $1 million fine when he is sentenced on April 3, 2020, by U.S. District Judge Eli J. Richardson.
The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 70 defendants who are collectively responsible for distributing more than 40 million pills. The Health Care Fraud Unit, in general, maintains 15 strike forces operating in 24 districts, and has charged nearly 4,200 defendants who have collectively billed the Medicare program for more than $15 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
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Former Assistant United States Attorney Pleads Guilty to Federal Theft ChargeRead the Press Release
JACKSON, Tenn. – November 21, 2019 – Barbara Zoccola, 58, of Memphis, Tennessee, pleaded guilty today in U.S. District Court to a federal theft charge, announced U.S. Attorney Don Cochran for the Middle District of Tennessee. Zoccola was charged in a criminal Information filed on October 9, 2019, which resulted from an investigation by the Department of Justice’s Office of Inspector General into Zoccola’s time and attendance records.
Today, Zoccola entered into a plea agreement, in which she admitted to the conduct alleged in the single-count Information – that on October 25, 2018, she certified her time and attendance records for the pay period, falsely reporting that she had worked full 8-hour days on four specific days. Zoccola failed to report nine hours of leave time that she had taken on the same days. Zoccola also admitted that between June 2018 and June 2019, she submitted additional certifications in which she failed to report other leave time, which allowed her to accrue additional leave time that she was not entitled to. Zoccola admitted that the value of the unreported leave time was between $6,500 and $15,000.
The plea agreement required Zoccola to resign her position as an Assistant U.S. Attorney and to pay $10,000 in restitution to the Department of Justice. She also faces up to one year in prison when she is sentenced next year.
This case is being prosecuted by Assistant U.S. Attorneys Brent A. Hannafan and Chris Suedekum of the Middle District of Tennessee. U.S. District Judge William L. Campbell, Jr., of the Middle District of Tennessee, sitting by special designation, conducted the proceedings in the Jackson Branch of the Western District of Tennessee.
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Kentucky Trio Facing Federal Charges for Mail TheftRead the Press Release
NASHVILLE, Tenn. – November 20, 2019 – An 11-count indictment returned last week charged three individuals from Trenton, Kentucky with conspiracy to commit mail fraud and theft of mail, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Adam Perrelli, 41, Kaitlin Patterson, 30, and Natasha Pargellis, 35, were indicted on November 13, 2019, after a lengthy investigation into mail thefts in and around the Clarksville, Tennessee area.
According to the indictment, the defendants obtained a master key that allowed them to open mail receptacles such as street collection boxes and panels of apartment house mailboxes. During the period of March 2018 through September 2018, the trio drove with each other and other individuals to various mail receptacles and took large amounts of mail. They then sorted through the mail looking for documents to use for their personal benefit, including checks, money orders, credit cards and personal identifying information. The documents were then altered and made payable to another participant in the conspiracy and approximately $32,000 in altered checks and money orders were cashed or deposited. The investigation uncovered an additional $540,000 in stolen checks and money orders which they intended to alter.
If convicted, the defendants face up to 20 years in prison.
This case was investigated by the U.S. Postal Inspection Service and the Clarksville Police Department and is being prosecuted by Assistant U.S. Attorney Robert Levine.
An indictment is merely an accusation. The defendants are presumed innocent until proven guilty in a court of law.
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Federal Grand Jury Indicts Kedrick Ross on Drug Distribution and Firearms ChargesRead the Press Release
NASHVILLE, Tenn. – November 8, 2019 – Kedrick Ross, 27, of Nashville, was indicted Wednesday by a federal grand jury and charged with drug distribution and firearms offenses, announced Don Cochran, U.S. Attorney for the Middle District of Tennessee.
Ross was initially charged in a criminal complaint on October 2, 2019, with two counts of being a convicted felon in possession of a firearm and two counts of possession of a firearm in furtherance of a drug crime. The indictment charges Ross with three counts of being a convicted felon in possession of firearms; three counts of possession of a firearm in furtherance of a drug crime; possession of a controlled substance with intent to distribute marijuana, methamphetamine and Xanax, within 1,000 feet of an educational institution; possession of a controlled substance with intent to distribute marijuana and methamphetamine, within 1,000 feet of a public housing complex; possession with intent to distribute methamphetamine; and two counts of obstruction of justice.
According to the indictment, on December 13, 2018, Ross, a convicted felon, was in possession of a Glock .40 caliber handgun, 208 grams of marijuana, and a mixture of methamphetamine near the Watkins College of Art in Nashville. On May 29, 2019, Ross was in possession of a Glock 9mm handgun and a Glock .45 caliber handgun, marijuana and methamphetamine, while in the Cumberland View Public Housing development. The indictment also alleges that on September 9, 2019, Ross was in possession of a Glock .40 caliber handgun while in possession of methamphetamine, with intent to distribute. This firearm was determined to have been the same firearm that caused a gunshot wound to the head of a 3-year-old child on the same day. The indictment also alleges that Ross obstructed justice during the investigation of this incident by attempting to persuade an individual to falsely claim that this firearm belonged to a deceased individual.
If convicted, Ross faces up to life in prison.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Metropolitan Nashville Police Department. Assistant U.S. Attorney Sunny A.M. Koshy is prosecuting the case.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
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Convicted Felon Pleads Guilty to Federal Firearms Charges Following Stand Off with Police Last YearRead the Press Release
NASHVILLE, Tenn. – November 4, 2019 – Justin Jerome Jones, 31, of Nashville, Tennessee, pleaded guilty today in U.S. District Court to three counts of being a convicted felon in possession of firearms, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
According to the facts presented at the plea hearing, on February 7, 2018, residents of the Tony Sudekum public housing neighborhood called police when they saw Jones outside a residence, arguing with his 11-year-old daughter, before firing several gunshots into the ground near the young girl. When officers from the Metropolitan Nashville Police Department (MNPD) arrived, Jones barricaded himself inside an apartment. MNPD S.W.A.T. officers, as well as federal agents, responded to the scene and Jones then repeatedly fired at the officers. One round struck an MNPD officer. After several hours, Jones exited the apartment and was immediately taken into federal custody.
A search warrant was then executed at the apartment and officers recovered several spent shell casings; a cocked .357 caliber revolver; a .38 caliber revolver; and parts from a 9mm pistol. Additional firearms parts and boxes of ammunition were also recovered from the apartment the following day. The investigation also determined that Jones had previously brandished the 9mm pistol at another person.
Jones had previously been convicted of aggravated robbery in Davidson County, Tennessee, in 2007, and was also convicted of aggravated robbery in Hamilton County, Ohio, in 2009, relating to armed bank robbery. Jones was released from custody in Ohio in December 2016, and paroled to the State of Mississippi.
Jones faces up to 30 years in prison when he is sentenced on March 13, 2020.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Metropolitan Nashville Police Department. Assistant U.S. Attorneys Sunny A.M. Koshy and Joseph Montminy are prosecuting the case.
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Nashville Man Sentenced to 15 Years in Federal Prison for Firearms ViolationsRead the Press Release
NASHVILLE, Tenn. October 31, 2019 – Kevin Mark Paul, 36, of Nashville, was sentenced yesterday in U.S. District Court to 15 years in prison for being a convicted felon in possession of a firearm, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Paul was indicted by a federal grand jury in November 2018 after he was arrested by Metropolitan Nashville Police Department (MNPD) officers on October 4, 2018. On this date, MNPD officers received information that Paul was wanted on outstanding warrants, then in a residence on Charlotte Pike and was also in possession of weapons. Officers went to the house and attempted to persuade Paul to surrender but were unsuccessful. Officers entered the house and located Paul in a back bedroom, laying on the floor between a bed and the wall. Paul refused the officer’s commands to show his hands and reached under the bed in an attempt to retrieve a 12-gauge shotgun before being subdued and arrested by the officers.
Evidence and testimony introduced during subsequent court proceedings showed that Paul is affiliated with the Aryan Nation and has a lengthy criminal record and prior felony convictions, including aggravated assault and aggravated burglaries. Paul pleaded guilty in May to being a convicted felon in possession of a firearm.
At sentencing, U.S. District Judge William L. Campbell, Jr., found that Paul’s criminal history qualified him as an Armed Career Criminal and subject to sentence enhancement.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Metropolitan Nashville Police Department. Assistant U.S. Attorneys Rob McGuire and Brooke Schiferle prosecuted the case.
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Tennessee Medical Doctor and Advanced Practice Registered Nurse Charged in Scheme to Unlawfully Distribute Controlled SubstancesRead the Press Release
A Tennessee medical doctor and an advanced practice registered nurse were charged in an indictment unsealed today for their roles in unlawfully distributing controlled substances.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Don Cochran of the Middle District of Tennessee, Special Agent in Charge Derrick L. Jackson of the Atlanta Regional Office of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Special Agent in Charge M.A. “Mo” Myers of the FBI’s Memphis Field Office and Director David B. Rausch of the Tennessee Bureau of Investigation (TBI) made the announcement.
Hemal V. Mehta, M.D., 49, of Brentwood, Tennessee, and Heather L. Marks, APRN, 36, of Murfreesboro, Tennessee, were charged in an indictment filed Oct. 23, 2019, in the Middle District of Tennessee with one count of conspiracy to unlawfully distribute controlled substances and nine counts of unlawful distribution of controlled substances.
According to the indictment, between 2016 and 2018, Mehta and Marks, whom Mehta supervised, conspired to distribute Schedule II controlled substances, including oxycodone, morphine sulfate and oxymorphone, to patients outside the usual course of professional practice and without a legitimate medical purpose. Mehta and Marks also allegedly dispensed and distributed oxycodone and oxymorphone on various occasions between 2016 and 2018.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI, HHS-OIG and TBI investigated the case. Trial Attorney William M. Grady of the Criminal Division’s Fraud Section is prosecuting the case
The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 70 defendants who are collectively responsible for distributing more than 40 million pills. The Health Care Fraud Unit, in general, maintains 15 strike forces operating in 24 districts, and has charged nearly 4,200 defendants who have collectively billed the Medicare program for more than $15 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Individuals who believe that they may be a victim in this case should visit https://www.justice.gov/criminal-vns/case/ARPO for more information.
Texas Man Pleads Guilty to Interstate Stalking and Threatening CEO of Big Machine Label GroupRead the Press Release
NASHVILLE, Tenn. – October 28, 2019 –Eric Swarbrick, 26, of Austin Texas, pleaded guilty today in U.S. District Court, to interstate stalking and sending interstate communications with the intent to threaten, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Swarbrick was charged in September 2018 and initially arrested in Travis County, Texas before being transferred to the Middle District of Tennessee.
In January 2018, Big Machine Label Group (“BMLG”) in Nashville, began receiving letters from Swarbrick expressing his desire for BMLG CEO Scott Borchetta to introduce him to Taylor Swift, who at the time was a client of BMLG. In one letter, Swarbrick acknowledged that he had been wandering around the offices of BMLG in the past. Over time, the letters became increasingly violent and sexual in nature, with at least 40 letters and emails having been received by BMLG.
On three occasions, Swarbrick drove from Texas to Nashville and personally delivered letters to BMLG, including on August 2, 2018. On that date, Swarbrick attempted to gain entrance into BMLG’s office but was detained by security guards and arrested by the Metropolitan Nashville Police Department. After being released from custody in Nashville, Swarbrick continued to send at least 13 threatening letters and emails before the end of August 2018. In many of the letters, Swarbrick expressed his desire to rape and kill Taylor Swift and in one letter, he stated he would kill himself in front of Borchetta and his staff.
Swarbrick is currently in the custody of the United States Marshal and will remain so until he is sentenced on March 6, 2020. He faces up to five years in prison and a $250,000 fine on each count.
This case was investigated by the FBI and the Metropolitan Nashville Police Department. Assistant U.S. Attorney Siji Moore prosecuted the case.
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Lengthy Prison Sentences Handed Down in Continuing Violent Crime Investigations in Public Housing AreasRead the Press Release
NASHVILLE, Tenn. – October 28, 2019 – Four Nashville men received lengthy prison sentences last week for a series of violent crimes connected to investigations in or near the J.C. Napier and Tony Sudekum public housing developments, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Rodrecus M. Smith, aka, Lil Rod, 31, was sentenced on Thursday to 34 years in prison in connection with the October 2013 murder of Mario McKnight, during the robbery of another person. On that day, Smith had gone to a home in the Edgehill community of Nashville to rob a drug dealer during a high stakes dice game. Armed with a Mac/Tek style firearm with an extended magazine, Smith robbed the drug dealer of $5,000 and pointed the weapon at others, threatening to shoot anyone who interfered.
During the robbery, Mario McKnight was in the immediate area picking up laundry from a dry cleaning van and in an attempt to escape the violence, he jumped into the back of the van and urged the driver to leave the area. As the van drove past, Smith fired into the van, striking McKnight and killing him. Smith was then driven away from the area by Martez Parham, who conspired with Smith to commit the robbery. Smith was subsequently indicted on state charges but remained a fugitive until June 2014, when he was arrested by the U.S. Marshals Fugitive Task Force. Smith was indicted by a federal grand jury in June 2016. While in custody and awaiting trial, Smith made numerous attempts to prevent witnesses from testifying against him. During the third day of a jury trial in December 2018, Smith abruptly pleaded guilty to all charges, including conspiracy to commit robbery affecting commerce; carrying, brandishing and discharging a firearm resulting in death; possession of ammunition by a convicted felon; and two counts of witness tampering.
Darryl Starks, 35, was sentenced on Thursday to 15 years in prison. Starks was charged in connection with four shootings, all of which occurred in or adjacent to the J.C. Napier neighborhood, three of which were precipitated by Starks’ belief that Martez Parham had been involved in the robbery and murder in the Edgehill incident described above, which resulted in the death of Starks’ friend, Mario McKnight. Starks pleaded guilty to the charges in April 2017.
Starks participated in the shooting of Joshua Woods on October 16, 2014, whom he believed to have sided with Parham during a physical altercation between Starks and Parham. Woods was shot multiple times but survived.
On March 23, 2015, Starks shot into a vehicle with a 12-gauge shotgun, after becoming involved in another physical altercation during a dice game. No one was injured during that incident.
On July 16, 2015, Starks drove another person through the J.C. Napier neighborhood looking for Martez Parham and Ernest Eddie. That person was armed with a semi-automatic handgun and intended to shoot them. Upon seeing them, the individual fired at them and missed, but struck a woman who was holding a young child in her arms. The bullet struck the woman in the head and caused life-threatening injuries.
A few hours later, during the early morning hours of July 17, 2015, Starks returned to the J.C. Napier neighborhood with Terrance Kimbrough, armed with a rifle and a shotgun. Starks and Kimbrough engaged in a shootout with the brother of the female victim shot earlier. Two other innocent women were struck by gunfire during this incident and received medical treatment. Starks and Kimbrough were taken into custody on July 28, 2015, after an extensive manhunt by law enforcement. Kimbrough was previously sentenced in March to 42 years in prison.
Ernest Eddie, 30, was sentenced on Wednesday, to 61 months in prison. Eddie was indicted in August 2015, with being a convicted felon in possession of a firearm, in connection with the shooting incident on July 16, 2015. Through witness interviews and social media posts, investigators determined that Eddie, and Martez Parham, had been in possession of a .45 caliber handgun during this incident. Eddie pleaded guilty in September 2015.
Martez Parham, 27, was also sentenced on Wednesday to 27 years in prison for the robbery and conspiracy; witness tampering; and being a convicted felon in possession of firearms. Parham pleaded guilty in May 2017.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Metropolitan Nashville Police Department and prosecuted by Assistant U.S. Attorneys Sunny A.M. Koshy and Philip H. Wehby. This is part of an on-going effort to curb violent crime in the public housing areas of Nashville and investigations are continuing.
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Illegal Immigrant, Twice Deported, Again Facing Federal Firearms ChargesRead the Press Release
NASHVILLE, Tenn. – October 17, 2019 – Angel Daniel-Garcia, 35, of Mexico, was indicted yesterday by a federal grand jury on charges of being an aggravated felon who illegally re-entered the United States after having been previously deported; being a convicted felon in possession of a firearm; and being an illegal alien in possession of a firearm, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Court records indicate that Daniel-Garcia was deported in 2010 after he brandished a pistol and robbed two gas stations on Murfreesboro Road in Nashville, Tennessee. Daniel-Garcia returned to the United States and was charged and convicted in federal court of being an aggravated felon who illegally entered the United States after previously being deported. In October 2015, he was sentenced to 27 months in prison and deported after the completion of his sentence.
Daniel-Garcia again returned to the United States and according to the indictment, on September 10, 2019, he was found in possession of a Smith & Wesson 9mm pistol. Daniel-Garcia is also facing felony drug and firearms charges in Davidson County, Tennessee in relation to a shooting incident on the same day.
If convicted, Daniel-Garcia faces up to 10 years in prison on each firearm violation and up to 20 years in prison on the immigration charge.
The Bureau of Alcohol, Tobacco, Firearms & Explosives; the Department of Homeland Security-Immigration & Customs Enforcement; and the Metropolitan Nashville Police Department are investigating the case. Assistant U.S. Attorney Ahmed Safeeullah is prosecuting the case.
The defendant is presumed innocent until proven guilty in a court of law.
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16-Count Superseding Indictment Charges Owner of Pain MD and Three Medical Professionals in Healthcare Fraud ConspiracyRead the Press Release
NASHVILLE, Tenn. – October 15, 2019 –A 16-count superseding indictment unsealed today charged Michael Kestner, 67, of Nashville, Tennessee, Brian Richey, 37, of Cookeville, Tennessee, Daniel Seeley, 58, of Batesville, Mississippi, and Jonathan White, 49, of Tullahoma, Tennessee, with conspiracy to commit health care fraud and multiple counts of healthcare fraud, announced U.S. Attorney Don Cochran for the Middle District of Tennessee and Assistant Attorney General Brian Benczkowski of the Justice Department’s Criminal Division.
Richey and Seeley, both nurse practitioners, and White, a physician assistant, were indicted in April on one count of healthcare fraud and one count of conspiracy to commit healthcare fraud. Today’s superseding indictment charges each with four additional counts of healthcare fraud and also charges Kestner, the owner of MedManagement, Inc. (MMI), with one count of conspiracy and 15 counts of healthcare fraud.
Kestner surrendered to U.S. Marshals earlier today and will be making an initial appearance before a U.S. Magistrate Judge later this afternoon. Richey, Seeley and White are expected to surrender at a later time.
According to the indictment, Kestner was the owner and CEO of MMI and was the majority owner of Pain MD, with a principal place of business in Franklin, Tennessee. Richey, Seeley and White were employed by MMI, which managed Pain MD. Pain MD operated pain and wellness clinics throughout middle Tennessee, Virginia, and North Carolina and Michael Kestner, who has neither medical training nor certifications, served as its President.
Pain MD represented itself to be an “interventional” pain management practice and it claimed to provide procedures, including injections and durable medical equipment (“DME”) that were intended to reduce patient reliance on opioids and other narcotic pain medications. The indictment alleges that, in fact, these practices were intended to increase revenues for Pain MD and to personally enrich Pain MD providers.
Between 2010 and continuing through May 2018, the indictment alleges that Kestner, Richey, Seeley and White conspired to enrich themselves and their employers by submitting false and fraudulent claims to Medicare, Medicaid and TRICARE. Kestner and others took steps to ensure Pain MD providers increased their “productivity” by providing more and more services, without consideration of whether those services were medically reasonable and necessary. These steps included, but were not limited to: paying productivity-based bonuses to providers; locking providers into legally questionable employment agreements that included extended non-compete periods of up to 24 months; threatening providers who had low productivity numbers with termination and other consequences; sending regular emails, sometimes more than once daily, comparing and ranking providers based on the number of injections or DME devices they had provided; providing erroneous clinical trainings to under-experienced providers, instructing them on inappropriate care protocols and anatomically incorrect injection procedures; and sending Richey, Seeley and White out to clinics to “train” providers, who were not providing a high percentage of injections and DME, and how to “control” the patients and get them to agree to receive unnecessary medical procedures, under threats to discontinue their narcotic pain medications if they refused.
Richey, Seeley and White provided services to patients, namely “Tendon Origin Injections,” which were neither medically necessary nor anatomically possible, provided medically unnecessary DME, and then submitted fraudulent claims to Medicare, Medicaid and TRICARE. These services were provided to further the company’s business model by increasing revenues and to personally enrich Pain MD providers and executives.
As a result of the conspiracy, Kestner, Richey, Seeley and White caused the submission of more than $27,537,383.17 to be billed to Medicare, resulting in approximately $5,054,525.07 in reimbursement; more than $8,567,657.00 to be billed to TennCare, resulting in approximately $101,077.79 in reimbursement; and more than $2,544,322.01 to be billed to TRICARE, resulting in approximately $284,458.51 in reimbursement.
If convicted, the defendants face up to 10 years in prison and a $250,000 fine on each count.
This case is brought as part of the Appalachian Regional Prescription Opioid (ARPO) Strike Force, comprised of U.S. Attorney’s Offices for ten federal districts in six states, as well as law enforcement partners at the U.S. Department of Health & Human Services, Office of Inspector General; the Defense Criminal Investigative Service; the Department of Veterans Affairs, Office of Inspector General; the IRS, Criminal Investigation; and the Tennessee Bureau of Investigation, Medicaid Fraud Control Unit. Assistant U.S. Attorney Sara Beth Myers and Trial Attorney Anthony Burba of the Fraud Section of the Department of Justice’s Criminal Division are prosecuting the cases. The southern hub of the ARPO Strike Force operates out of Nashville.
An indictment is merely an accusation. All defendants are presumed innocent until proven guilty in a court of law.
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Honduran Man Recently Charged with Illegal Re-Entry Faces Additional Firearms & Drug Distribution ChargesRead the Press Release
NASHVILLE, Tenn. – October10, 2019 – Franklin Pineda-Caceras, aka “Bomba”, 19, of Honduras, was indicted yesterday by a federal grand jury and charged with immigration violations, firearms and drug offenses, announced U.S. Attorney Don Cochran for the Middle District of Tennessee. Pineda-Caceras was previously charged last month with illegally re-entering the United States after having been previously deported.
In addition to the immigration charge, the indictment charges Pineda-Caceras with being an illegal alien in possession of ammunition on July 17, 2019, and on September 8, 2019 - being an illegal alien in possession of a firearm and ammunition; possessing another firearm which had the serial number removed; possession with intent to distribute marijuana and cocaine; and possession of a firearm in furtherance of a drug crime.
According to charging documents, agents with Homeland Security Investigations (HSI) and officers of the Metropolitan Nashville Police Department (MNPD) first encountered Pineda-Caceres in October 2017, during the execution of an arrest warrant on another individual at a Nashville residence. Pineda-Caceres was taken into custody at that time by the MNPD and charged with drug crimes. HSI agents determined that Pineda-Caceres unlawfully entered the United States in 2014 and a final order of removal was issued in June 2016.
In February 2018, Pineda-Caceres was transferred to the custody of HSI and on May 3, 2018, he was placed on a plane and deported from the United States.
In July, HSI and MNPD learned that Pineda-Caceres had returned to the United States and attempted to arrest him at a residence in Nashville on an outstanding warrant for aggravated kidnapping. Pineda-Caceres was able to evade arrest but officers found cocaine, marijuana and digital scales inside the car he abandoned.
On September 8, Pineda-Caceres was involved in an automobile accident in Nashville and MNPD officers recovered a substantial amount of cocaine from his vehicle. Pineda Caceres was transported to Vanderbilt Hospital where MNPD officers subsequently identified him and arrested him on the outstanding kidnapping warrant.
If convicted, Pineda-Caceres faces a minimum of five years and up to life in prison.
This case is being prosecuted by Assistant U.S. Attorney Ahmed Safeeullah.
An indictment is merely an accusation and the defendant is presumed innocent until proven guilty in a court of law.
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Federal Jury Finds Pharmacy Shooter GuiltyRead the Press Release
NASHVILLE, Tenn. – October 9, 2019 – Dionte Breedlove, 25, of Nashville, was found guilty yesterday of robberies affecting interstate commerce and using a firearm during and in relation to crimes of violence, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
The verdicts were the result of a week-long trial in U.S. District Court where Breedlove was tried for participating in the robberies of the Rite Aid Pharmacy on West End Avenue in Nashville on September 14, 2017, and again on October 9, 2017, during which he shot an unarmed security guard.
Breedlove, along with Carlos Valcarcel-Arocho, 23, also of Nashville, were both charged in August 2018, after an investigation into the robberies determined that Valcarcel-Arocho, an employee of Rite-Aid, was present during each robbery and participated by texting Breedlove when the time was right for him to enter the store. Valcarcel-Arocho posed as a victim during each robbery and helped stuff cash into a bag after opening the safe and cash registers. The investigation also determined that Breedlove and Valcarcel-Arocho had been acquainted for several years. A search warrant later executed at Valcarcel-Arocho’s apartment uncovered several items connected to the robbery. Valcarcel-Arocho pleaded guilty to the charges in June.
During the October 2017 robbery, Breedlove pointed a gun at two employees, including Valcarcel-Arocho, and ordered them to put cash into a bag. The unarmed security guard stood nearby with his arms behind his head. Breedlove then shot him in the chest at close range and held the gun to the back of the head of the other employee while threatening him. The security guard underwent emergency surgery and was hospitalized for several weeks. Doctors were unable to remove a bullet that remains lodged in his spine.
Breedlove faces a mandatory minimum sentence of 17 years, and up to life in prison. Valcarcel-Arocho faces seven years, up to life in prison. Both will be sentenced in February 2020.
This case was investigated by the FBI and the Metropolitan Nashville Police Department. Assistant U.S. Attorneys Philip H. Wehby and Sunny A.M. Koshy prosecuted the case.
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Nashville Man Facing Federal Firearms Charges After Child Suffers Gunshot Wound to the HeadRead the Press Release
NASHVILLE, Tenn. – October 2, 2019 – Kedrick Ross, 27, of Nashville, Tennessee, was charged today with two counts of being a convicted felon in possession of a firearm and two counts of possession of a firearm in furtherance of a drug crime, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
A criminal complaint unsealed today alleges that Ross, a convicted felon, on separate occasions, was in possession of three stolen firearms and also possessed illegal drugs including marijuana, Xanax, methamphetamine, and MDMA as well as items associated with the packaging and sale of drugs.
Ross was arrested earlier today by ATF agents and Metro Nashville Police Youth Services Division detectives after appearing in Davidson County Criminal Court on other charges. He will appear before a U.S. Magistrate Judge later this afternoon.
The charges are the result of an investigation that began on September 9, 2019, after Ross’s three-year-son suffered a gunshot wound to the head while at a relative’s house in Nashville. The investigation determined that Ross, his girlfriend and child had stayed at a relative’s house on the previous evening and they found their son with a gunshot wound to the head the following day, after being startled by the sound of a “bang.” After the child was transported to the hospital, detectives from the Metropolitan Nashville Police Department (MNPD) interviewed the relative who told them that after the child was shot, Ross picked up the gun, placed it in a purse, and put in in her car parked in the driveway.
Further investigation revealed that at the time of this incident, Ross was under state indictment for other offenses, and out on bond, including a December 2018 incident in which he was arrested by MNPD officers on drug possession and distribution charges and possessing a stolen Glock .40 caliber handgun. Before being arrested, Ross was observed by MNPD officers conducting a drug transaction on Rosa Parks Boulevard. After two attempts to pull him over, officers stopped Ross’s vehicle but he refused to exit the car and made several reaching movements under the seat. Officers removed Ross from the car and recovered three quart jars containing marijuana, five plastic baggies of marijuana, electronic scales, and a bottle containing an assortment of pills, including Xanax and methamphetamine. A Glock .40 caliber handgun loaded with 14 rounds was recovered from between the driver seat and center console and 14 Xanax bars were found in Ross’ jacket pocket.
The firearm recovered from this incident had been reported stolen in September 2018 from a vehicle parked at a residence in Ashland City, Tennessee. This firearm has been linked to two subsequent shooting incidents, including a damaged property incident on Whites Creek Pike in Nashville on October 16, 2018, and an aggravated assault in Madison, Tennessee, in November 2018. These incidents remain under investigation.
While on bond for the charges listed above, on May 29, 2019, Ross was arrested by MNPD officers after fleeing from them in the area of 25th Avenue North, a part of the Cumberland View Apartments and commonly referred to as “Dodge City.” During this incident, officers with the Juvenile Crimes Task Force saw a vehicle, illegally parked in a handicap-designated space. As officers approached the vehicle, Ross exited the driver’s seat and fled on foot. After a foot pursuit, a TASER was deployed in order to subdue Ross. After being apprehended, two loaded Glock semi-automatic handguns were recovered from Ross’s vehicle, along with marijuana, MDMA, and several items associated with drug distribution. Each of these firearms had previously been reported stolen in separate incidents. One was forcibly taken from an individual as he walked along Charles E. Davis Boulevard in June 2018 and the other was stolen from a vehicle parked at a residence in Nashville in July 2018.
In addition to these charges, Ross had previously been convicted of felonies in 2013, 2014, 2015 and 2016, including being a convicted felon in possession of a firearm and possession of controlled substances with intent to sell.
If convicted, Ross faces a minimum of 10 years, up to life in prison.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Metropolitan Nashville Police Department. Assistant U.S. Attorney Sunny A.M. Koshy is prosecuting the case.
A criminal complaint is merely an accusation. Ross is presumed innocent until proven guilty in a court of law.
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Illegal Alien Pleads Guilty to Re-Entering the Unites StatesRead the Press Release
NASHVILLE, Tenn. – October 1, 2019 – Jose Lopez-Ruiz, 39, an illegal alien from Guatemala, pleaded guilty yesterday in U.S. District Court in Nashville, to re-entering the U.S. after having been previously deported, announced Don Cochran, U.S. Attorney for the Middle District of Tennessee.
In May 2019, Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE ERO) agents encountered Lopez-Ruiz while detaining another individual in Madison, Tennessee, as part of its Criminal Alien Program. During this encounter, Lopez-Ruiz fled on foot and was not apprehended. Approximately two months later, on July 9, 2019, ICE ERO, after receiving information on his whereabouts, engaged Lopez-Ruiz again in Madison. After initially resisting officers, Lopez-Ruiz was taken into custody.
Lopez-Ruiz is a native a Guatemala and has been physically deported from the United States on seven previous occasions beginning in 2000 and most recently in January 2018. While in the United States illegally, Lopez-Ruiz has been convicted of Driving Under the Influence on five occasions with another DUI offense still pending.
Lopez-Ruiz faces up to two years in prison when he is sentenced on January 24, 2020.
Assistant U.S. Attorney Josh Kurtzman is prosecuting the case.
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Former Credit Union Teller and Co-Conspirator Sentenced to Federal Prison for Bank Fraud and Identity TheftRead the Press Release
NASHVILLE, Tenn. – October 1, 2019 – Nicole C. Walker, 40, of Clarksville, Tennessee, was sentenced yesterday in U.S. District Court to three years in prison for conspiracy to commit bank fraud and aggravated identity theft, announced U.S. Attorney Don Cochran for the Middle District of Tennessee. LaToya Chambers, 43, of Nashville, Tennessee, also charged in this case, was sentenced in August to 30 months in prison. Both pleaded guilty earlier this year. U.S. District Judge Eli J. Richardson also ordered the defendants to pay $84,416.00 in restitution.
Chambers, a former teller at NGH Credit Union, (now Cornerstone Financial Credit Union) and Walker were indicted on December 19, 2018, after an investigation determined that Chambers had used her position to obtain personal identifying information of credit union customers. During their plea hearings, Chambers and Walker admitted that from March 2018 through July 2018, Chambers shared the personal information that she had obtained with Walker, who used the identities to make fraudulent withdrawals from the victims’ credit union accounts without their knowledge. Chambers and Walker divided the proceeds of many of the fraudulent transactions between themselves. Several of the credit union customers were elderly and had accumulated assets. According to court records, the financial institutions involved in these transactions lost over $80,000. Walker also used some of the stolen identities to conduct other personal transactions outside of the credit union.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Christopher C. Sabis. This case is supported by the Department of Justice’s Elder Justice Initiative, which coordinates the Department’s activities combatting elder abuse, neglect, and financial exploitation. This case is a product of the Elder Justice Task Force of the United States Attorney’s Office for the Middle District of Tennessee. For more information about the Department’s Elder Justice Initiative and the Elder Justice Task Force, see https://www.justice.gov/elderjustice/ and https://www.justice.gov/usao-mdtn/elder-justice-task-force .
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Three Facing Federal Charges After Carthage Bank RobberyRead the Press Release
NASHVILLE, Tenn. – September 26, 2019 – Three mid-state individuals are facing federal bank robbery charges following the Tuesday afternoon robbery of the Citizen’s Bank of Carthage, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
David Reynolds, 28, Joe Betty, 22, and Tiffany Garcia, 27, all of Gallatin, Tennessee, were charged yesterday in a criminal complaint following their arrests Tuesday afternoon on Interstate 40, near Lebanon, Tennessee.
According to the complaint, on Tuesday afternoon, three individuals entered the Citizen’s Bank on Dixon Springs Highway in Carthage, Tennessee and one of the individuals handed a teller a note demanding $15,000. The robber motioned to his waist indicating a gun. When the teller told the robber that there was not enough cash in the drawer to fulfill the demand, the robber asked where additional cash was. The teller then motioned toward the vault behind the teller counter. The robber then went behind the counter, pushed the teller out of the way and began taking cash from the vault and instructed the other two suspects to help him.
The suspects then fled the bank in a red Chevrolet Impala and a bank teller notified police. Officers from the Smith County Sheriff’s Department and the Carthage Police Department observed the suspects fleeing the bank and attempted to stop them but the suspects continued to flee. Multiple law enforcement agencies became involved as the suspects fled. The vehicle was subsequently stopped on Interstate 40, near Lebanon and four individuals were apprehended including Reynolds, Betty and Garcia, along with $65,000 cash. The other individual was a juvenile and was taken into custody by the Smith County Sheriff’s Department.
After reviewing the bank surveillance video, FBI agents determined that approximately five minutes before the robbery, Tiffany Garcia entered the bank and spoke to a teller. The complaint alleges that Garcia was “casing” the premises immediately before the robbery.
If convicted, the defendants face up to 20 years in prison.
This case is being investigated by the FBI. Other agencies involved in the pursuit and apprehension include the Tennessee Highway Patrol; the Wilson County Sheriff’s Department; and the Lebanon Police Department. Assistant U.S. Attorney Rob McGuire is prosecuting the case.
The charge is merely an accusation. All defendants are presumed innocent until proven guilty in a court of law.
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Illegal Alien Indicted for Re-Entering the United States After Having Been Previously DeportedRead the Press Release
NASHVILLE, Tenn. – September 17, 2019 – A federal indictment unsealed today, charged Jose Fernando Andrade-Sanchez, 39, a citizen of Mexico, with unlawful re-entry into the United States, after having been previously removed, announced U.S. Attorney Don Cochran for the Middle District of Tennessee and John Condon, Acting Special Agent in Charge of the U.S. Homeland Security Investigations Nashville Field Office.
Andrade-Sanchez was indicted by a federal grand jury on September 11, 2019, after encountering U.S. Immigration & Enforcement agents in Nashville on September 5, 2019, and eluding apprehension. Andrade-Sanchez was arrested by ICE agents in Nashville earlier today.
According to documents filed with the court, Andrade-Sanchez was found and removed from the United States on four prior occasions, most recently on October 13, 2013. While in the U.S. illegally and living in Nashville, Andrade-Sanchez was charged under the alias of Eduardo Negrete, with domestic assault and aggravated child abuse after striking a three-year old child in the face, while assaulting his then girlfriend and the child’s mother. Both required transport to a local hospital where the girlfriend was treated for facial injuries and the child was evaluated for a possible broken nose. Andrade-Sanchez later pleaded guilty to domestic assault and the child abuse charge was retired.
Following his removal to Mexico on July 16, 2009, Andrade-Sanchez illegally returned to the U.S. and on April 21, 2013, he was charged with criminal impersonation after falsely identifying himself to a Metro Nashville Police officer as Erik Valazquez. He pleaded guilty to that charge in May 2013.
On September 5, 2019, two ICE Enforcement & Removal agents located Andrade-Sanchez in a parking lot in Antioch, Tennessee. While speaking to Andrade-Sanchez, he refused to exit his truck and drove forward instead. One of the agents fired his weapon twice and one shot struck Andrade-Sanchez. Andrade-Sanchez then fled the area.
Andrade-Sanchez will make an initial appearance tomorrow before a U.S. Magistrate Judge. He is presumed innocent until proven guilty in a court of law.
Assistant U.S. Attorney Brent Hannafan is prosecuting this case.
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Honduran Man Charged with Illegal Re-entry into the United StatesRead the Press Release
NASHVILLE, Tenn. – September 17, 2019 – Franklin Pineda-Caceres, 18, of Honduras, was charged yesterday with illegally re-entering the United States after having been previously deported, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
According to charging documents, agents with Homeland Security Investigations (HSI) and officers of the Metropolitan Nashville Police Department (MNPD) first encountered Pineda-Caceres in October 2017, during the execution of an arrest warrant on another individual at a Nashville residence. Pineda-Caceres was taken into custody at that time by the MNPD and charged with drug crimes. HSI agents determined that Pineda-Caceres unlawfully entered the United States in 2014 and a final order of removal was issued in June 2016.
In February 2018, Pineda-Caceres was transferred to the custody of HSI and on May 3, 2018, he was placed on a plane and deported from the United States.
In July, HSI and MNPD learned that Pineda-Caceres had returned to the United States and attempted to arrest him at a residence in Nashville on an outstanding warrant for aggravated kidnapping. Pineda-Caceres was able to evade arrest but officers found cocaine, marijuana and digital scales inside the car he abandoned.
On September 15, Pineda-Caceres was involved in an automobile accident in Nashville and MNPD officers recovered a substantial amount of cocaine from his vehicle. Pineda Caceres was transported to Vanderbilt Hospital where MNPD officers subsequently identified him and arrested him on the outstanding kidnapping warrant.
If convicted, Pineda-Caceres faces up to 2 years in prison and a fine of $250,000.
This case is being prosecuted by Assistant U.S. Attorney Ahmed Safeeullah.
The charge is merely an accusation and the defendant is presumed innocent until proven guilty in a court of law.
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Memphis Man Facing Federal Firearms Charge After Weekend Assault in Broadway Entertainment DistrictRead the Press Release
NASHVILLE, Tenn. – September 11, 2019 –Pasquala Deshun Walls, 30, of Memphis, Tennessee, was charged yesterday with being a convicted felon in possession of a firearm, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
According to the criminal complaint, Walls was the driver of a Chrysler 300 and was reported to be driving erratically and displaying a handgun as he drove through the downtown entertainment district in the early morning hours of September 7, 2019. The area was packed with pedestrians and vehicular traffic at the time. Metro Nashville police officers located the vehicle and ordered Walls out of the car, at which time he accelerated and began crossing traffic lanes and ramming other cars. Metro police officers continued their attempts to stop the car and clear pedestrians from its path. At one point, officers were forced to jump out of the way to avoid being struck and one officer was pulled to the ground by the vehicle. This officer fired two shots at the vehicle as it continued on Broadway for several blocks before Walls jumped from the vehicle and ran. Walls was then chased and captured by citizens and held until he was taken into police custody. A 9mm pistol with an extended magazine, loaded with 26 rounds of ammunition was recovered from the floorboard of Walls’ car.
Walls was previously convicted of felony controlled substance crimes in Shelby County Tennessee and is prohibited from possessing a firearm.
If convicted, Walls faces up to 10 years in prison.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and is being prosecuted by Assistant U.S. Attorney Rob McGuire.
A criminal complaint is merely an accusation and is not evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
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Nashville Man Convicted of Federal Drug Distribution and Firearms ChargesRead the Press Release
NASHVILLE, Tenn. – September 4, 2019 –Lorenzo Shelton, 37, of Nashville, was found guilty yesterday on all counts of a federal indictment charging him with drug distribution and firearms violations, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
After a four-day trial, a jury found Shelton guilty of possession with intent to distribute 100 grams or more of heroin; possession of a firearm by a convicted felon; and possession of a firearm in furtherance of a drug trafficking crime.
According to evidence and testimony at trial, in August 2016, while Shelton was on parole for prior drug trafficking crimes, parole officers made a surprise visit to his home on Tillman Lane in Nashville. A search of Shelton’s room resulted in the seizure of 165 grams of heroin and other items indicative of drug trafficking. Officers also recovered $11,000 from the trunk of Shelton’s rental car. The investigation led officers to a second address on Chesapeake Drive in Nashville, where Shelton also lived, and there, officers recovered 90 grams of heroin, a loaded 9mm pistol, and $51,000 cash.
Shelton faces a minimum of 10 years and up to life in prison when he is sentenced by U.S. District Judge Eli J. Richardson on January 17, 2020.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives; the Tennessee Department of Correction; and the Metropolitan Nashville Police Department. Assistant U.S. Attorneys Henry C. Leventis and Brooke K. Schiferle prosecuted the case.
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Collinwood Tax Preparer Charged with Preparing False Tax ReturnsRead the Press Release
NASHVILLE, Tenn. – September 4, 2019 – Steve Lewis Newell, 72, of Collinwood, Tennessee, was charged today with three counts of preparing false tax returns, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
According to a criminal information filed today, Newell owned and controlled Tax Masters and Accounting in Collinwood, Tennessee, and assisted in the preparation of individual tax returns on behalf of his clients. Between 2014 and 2018, Newell prepared and filed more than 7,700 federal income tax returns, several of which contained inflated or fictitious deductions in Schedule A, including state and local taxes, charitable contributions, and employee business expenses. Newell also falsified other items on his clients’ tax returns, such as the filing status of the taxpayer. Each of these fraudulent misrepresentations served to lower the tax liability for his clients.
The scheme resulted in clients obtaining refunds, which they were not entitled to and caused a tax loss to the IRS of at least $230,000.
If convicted, Newell faces up to three years in prison and a $250,000 fine on each count.
This case was investigated by the IRS-Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Kathryn Booth.
The charges are merely an accusation and are not evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
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United States District Court Enters Permanent Injunction Against Hendersonville Companies and Its OwnerRead the Press Release
NASHVILLE, Tenn. – September 3, 2019 – A federal court in Nashville today entered a consent decree of permanent injunction against Hendersonville, Tennessee-based companies Basic Reset and Biogenyx, and its owner Fred R. Kaufman III, and Kimberly Kaufman, the Department of Justice announced today. The permanent injunction enjoins the defendants from distributing unapproved new drugs and misbranded and adulterated dietary supplements and a misbranded and adulterated device in violation of the federal Food, Drug, and Cosmetic Act (FDCA).
A complaint was filed on August 26, 2019, in the Middle District of Tennessee, at the request of the U.S. Food and Drug Administration (FDA), alleging, among other things, that defendants unlawfully distributed unapproved new drugs and an adulterated and misbranded device. Defendants market their drugs and device with claims that their products can be used to diagnose, cure, mitigate, treat, or prevent conditions, such as inflammation, chronic diarrhea, bacterial infections, head lice, allergies, and pain. The FDA has not approved Basic Reset’s or Biogenyx’s drugs or device for any use.
“The public has the right to expect that products perform according to claims included in their labeling and that the products are safe for use,” said U.S. Attorney Don Cochran. “FDA regulations exists to safeguard consumers and when those regulations are circumvented we will take whatever action is necessary to protect the public.”
“Drug and dietary supplement distributors who do not comply with the law risk endangering consumers,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We work closely with the FDA in our efforts to enforce the laws that are designed to keep consumers safe.”
“Americans expect and deserve products that meet appropriate standards for quality. To ensure safe use by consumers, it’s important that companies who sell products adhere to standards set forth by the FD&C Act, including product labeling and quality,” said Acting FDA Commissioner Ned Sharpless, M.D. “Despite previous warnings, Basic Reset and Biogenyx placed consumers at risk by distributing certain products in violation of current good manufacturing practice (CGMP) requirements and products which failed to adequately meet labeling standards. The U.S. Food and Drug Administration remains fully committed to taking enforcement action against companies and owners who place unsuspecting American consumers at risk.”
The complaint also alleges that Basic Reset and Biogenyx misbranded and adulterated their dietary supplements, several of which are missing information on their labels required by law. FDA inspections also uncovered numerous violations of the agency’s current Good Manufacturing Practice (cGMP) regulations for dietary supplements, including failing to establish and follow written procedures to review and investigate product complaints and failing to establish specifications to assure that the products they receive for labeling are adequately identified and consistent with the purchase order. Because Defendants failed to follow cGMP regulations, their dietary supplements are adulterated under the FDCA.
Basic Reset/Biogenyx is an own label distributor of various types of drugs, dietary supplements, and a device, and include, but are not limited to, AquaLyte, Bee Gold, Beta Factor, Body Mass Reset, CBD Reset, Dino-Min, Earth Wash, GH-C, Ionyte, Mello-Tonin, Miracle Facelift Masque, Nuovi Firming Masque, Nuovi Skin Toner, pH-FX, Q-min, SlimUp, TrimUp, Vibrant Energy Drink and Energy FX, a device intended for use in the cure, mitigation, treatment or prevention of disease, including but not limited to leukemia.
As part of the court-ordered permanent injunction, Basic Reset, Biogenyx, and their owners are prohibited from directly or indirectly receiving, labeling, holding, or distributing dietary supplements, drugs, or devices at or from their facility until they, among other things, recall their drugs, dietary supplements, and device, hire qualified experts to examine packaging and labeling, and receive written permission from the FDA to resume operations.
The United States is represented by Assistant U.S. Attorney Christopher Sabis of the U.S. Attorney’s Office for the Middle District of Tennessee, Trial Attorney Charles Biro of the Civil Division’s Consumer Protection Branch with the assistance of Associate Chief Counsel Laura Akowuah of the FDA’s Office of the Chief Counsel.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.
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Tennessee Health Care Executive Sentenced to Prison for Role in $4.6 Million Kickback SchemeRead the Press Release
A Tennessee health care executive was sentenced to 42 months in prison yesterday for her role in a $4.6 million kickback scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Don Cochran of the Middle District of Tennessee, Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General's (HHS-OIG) Atlanta Region, Special Agent in Charge John F. Kihn of the U.S. Department of Defense Criminal Investigative Service’s (DCIS) Southeast Field Office and Director David Rausch of the Tennessee Bureau of Investigation made the announcement.
Brenda Montgomery, 71, of Camden, Tennessee, was sentenced by U.S. District Judge William Campbell Jr., of the Middle District of Tennessee. Judge Campbell also ordered Montgomery to forfeit $595,676.80. Montgomery pleaded guilty on Jan. 7, 2019, to one count of conspiracy to violate the anti-kickback statute and seven counts of violating the anti-kickback statute.
As part of her guilty plea, Montgomery admitted that she agreed to pay John Davis, the former CEO of Comprehensive Pain Specialist (CPS), illegal kickbacks in exchange for his arranging for Medicare referrals for durable medical equipment (DME) ordered by CPS employees. Davis agreed to arrange for referrals of DME for Medicare beneficiaries from the providers he supervised in exchange for a kickback equaling 60 percent of the Medicare proceeds. In addition, Montgomery and Davis took a number of steps to conceal their illegal agreement, including making kickback payments through a nominee, creating and filing false tax documents, and, for Davis, intervening as CEO to prevent the owners of CPS from obtaining their own Medicare DME supplier numbers that would have allowed CPS to bill for its own Medicare DME orders.
Beginning in or around May 2015, Montgomery renegotiated her illegal agreement with Davis to further obscure their personal contract from Medicare and from CPS owners and employees, the court found. From approximately May 2015 until approximately November 2015, Montgomery agreed to pay Davis $200,000 for the sham purchase of a shell entity known as ProMed Solutions LLC (ProMed). Montgomery again sought to renegotiate the sham transaction with Davis after she complained that her referrals from CPS had been lower than expected. Montgomery ultimately paid $150,000 for ProMed. The true purpose of this payment was to induce Davis to continue driving CPS referrals to CCC Medical, which was Montgomery’s DME supplier.
The Court further found that Montgomery received as much as $2.9 million in fraudulent reimbursements from Medicare. In addition, Montgomery admittedly paid more than $770,000 in illegal kickbacks to Davis.
Davis was tried for his role in the conspiracy on March 26, 2019. On April 4, 2019, a jury in the Middle District of Tennessee returned a verdict of guilty on one count of conspiracy to defraud the United States and to violate the anti-kickback statute, and seven counts of violating the anti-kickback statute. Davis’ sentencing has not yet been scheduled.
This case was investigated by the HHS-OIG Atlanta Region, the DCIS’s Southeast Field Office and the Tennessee Bureau of Investigation Medicaid Fraud Control Unit. Trial Attorney Anthony J. Burba of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Henry Leventis of the Middle District of Tennessee are prosecuting the case.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Tennessee Health Care Executive Sentenced to Prison for Role in $4.6 Million Kickback SchemeRead the Press Release
NASHVILLE, Tenn. – August 29, 2019 - A Tennessee health care executive was sentenced to 42 months in prison yesterday for her role in a $4.6 million kickback scheme, announced U.S. Attorney Don Cochran for the Middle District of Tennessee, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General's (HHS-OIG) Atlanta region, Special Agent in Charge John F. Kihn of the U.S. Department of Defense Criminal Investigative Service’s (DCIS) Southeast Field Office and Director David Rausch of the Tennessee Bureau of Investigation.
Brenda Montgomery, 71, of Camden, Tennessee, was sentenced by U.S. District Judge William Campbell, Jr., of the Middle District of Tennessee. Judge Campbell also ordered Montgomery to forfeit $595,676.80. Montgomery pleaded guilty on Jan. 7, 2019, to one count of conspiracy to violate the anti-kickback statute, and seven counts of violating the anti-kickback statute.
As part of her guilty plea, Montgomery admitted that she agreed to pay John Davis, the former CEO of Comprehensive Pain Specialist (CPS), illegal kickbacks in exchange for his arranging for Medicare referrals for durable medical equipment (DME) ordered by CPS employees. Davis agreed to arrange for referrals of DME for Medicare beneficiaries from the providers he supervised in exchange for kickbacks equaling 60 percent of the Medicare proceeds. In addition, Montgomery and Davis took a number of steps to conceal their illegal agreement, including making kickback payments through a nominee, creating and filing false tax documents, and, for Davis, intervening as CEO to prevent the owners of CPS from obtaining their own Medicare DME supplier numbers that would have allowed CPS to bill for its own Medicare DME orders.
Beginning in or around May 2015, Montgomery renegotiated her illegal agreement with Davis to further obscure their personal contract from Medicare and from CPS owners and employees, the court found. From approximately May 2015 until approximately November 2015, Montgomery agreed to pay Davis $200,000 for the sham purchase of a shell entity known as ProMed Solutions, LLC (ProMed). Montgomery again sought to renegotiate the sham transaction with Davis after she complained that her referrals from CPS had been lower than expected. Montgomery ultimately paid $150,000 for ProMed. The true purpose of this payment was to induce Davis to continue driving CPS referrals to CCC Medical.
The Court further found that Montgomery received as much as $2.9 million in fraudulent reimbursements from Medicare. In addition, Montgomery admittedly paid more than $770,000 in illegal kickbacks to Davis.
Davis was tried for his role in the conspiracy on March 26, 2019. On April 4, 2019, a jury in the Middle District of Tennessee returned a verdict of guilty on one count of conspiracy to defraud the United States and to violate the anti-kickback statute, and seven counts of violating the anti-kickback statute. Davis’ sentencing has not yet been scheduled.
This case was investigated by the HHS-OIG Atlanta region, the DCIS’s Southeast Field Office and the Tennessee Bureau of Investigation Medicaid Fraud Control Unit. Assistant U.S. Attorney Henry Leventis and Trial Attorney Anthony J. Burba of the Criminal Division’s Fraud Section are prosecuting the case.
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Franklin, Tennessee Man and Three Others Sentenced to Prison for Engaging in Global Child Exploitation EnterpriseRead the Press Release
NASHVILLE, Tenn. – August 12, 2019 - The creator and lead administrator of a highly sophisticated “The Onion Router” (TOR)-network-based website dedicated to the sexual abuse of children was sentenced Friday, along with three others, for their roles in a global child exploitation enterprise.
Patrick D. Falte, 29, of Franklin, Tennessee, was sentenced to 35 years in prison for engaging in a child exploitation enterprise, three counts of advertising child pornography, and three counts of distributing child pornography. Benjamin A. Faulkner, 28, of Ontario, Canada, was sentenced to 35 years in prison; Andrew R. Leslie, 24, of Middleburg, Florida, was sentenced to 30 years in prison; and Brett A. Bedusek, 35, of Cudahy, Wisconsin, was sentenced to 20 years in prison, all for engaging in a child exploitation enterprise. Chief U.S. District Judge Waverly D. Crenshaw of the Middle District of Tennessee also sentenced each defendant to a lifetime of supervised release. All were indicted in March 2017 and pleaded guilty to the charges last year.
“The sentences imposed on these despicable individuals should insure that they never have another opportunity to abuse another child,” said U.S. Attorney Don Cochran. “With all that we have, we will continue to hunt down the evil and abominable like-minded individuals who delight in abusing children and will bring them to justice.”
“The Giftbox Exchange proved a haven for sophisticated predators to produce and spread deplorable depictions of child sexual abuse,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s sentences affirm that layers of anonymity on the dark web will not prevent the Department of Justice from identifying and holding accountable those who exploit children.”
In July 2015, Falte created a website called “The Giftbox Exchange” and operated it on the TOR network as a hidden service, meaning it could only be accessed by users through the TOR anonymity network. Falte paid for the operation of the site using the cryptocurrency Bitcoin. He acted as the lead administrator of the site and established rules that required users to upload and share images and videos depicting pre-teen children being sexually abused before being allowed access to the site.
The site was organized into different forums for posting different types of child pornography, categorized by age range of the minor victims, including a sub-forum for “Babies & Toddlers.” By the time the site was shut down by law enforcement in November 2016, it had over 72,000 registered users and 56,000 posts. In addition to operating the site on the TOR network, which masks the internet protocol addresses of the users, Falte and his co-conspirators used other advanced technological means to thwart law enforcement detection and investigative efforts, including file encryption and cryptography.
Faulkner joined The Giftbox Exchange in September 2015 and became an administrator of the site. In addition to his administration of The Giftbox Exchange, he created and administered another TOR network-based hidden service website dedicated to child sexual exploitation, which grew to host over 1 million members. Leslie, in addition to his membership on the The Giftbox Exchange, ran yet another TOR network-based hidden service website, which explicitly allowed images and videos depicting graphic and violent sexual abuse of children. Bedusek, who has a prior federal conviction for receipt of child pornography and engaged in activity on The Giftbox Exchange while on federal supervised release for that offense, was a VIP member, which gave him access to a special area of the site reserved for users who uploaded new or originally produced child pornography.
Falte and Faulkner were previously charged and convicted in the Eastern District of Virginia of operating an online network dedicated to child sexual exploitation, in connection with their sexual abuse of a toddler-aged minor to whom they gained access through an individual they met through The Giftbox Exchange. Both traveled to abuse that minor on multiple occasions and were sentenced in September 2017 to life in prison by U.S. District Judge John A. Gibney, Jr.
In addition, Andrew Leslie was previously charged and convicted in the Middle District of Florida, in connection with his sexual abuse and production of child pornography involving multiple children, including an infant and a toddler. In March 2018, Leslie was sentenced to 60 years in prison by U.S. District Judge Brian J. Davis.
The case was investigated by the U.S. Immigration and Customs Enforcement-Homeland Security Investigations and the High Technology Investigative Unit of the Child Exploitation and Obscenity Section (CEOS) of the Department of Justice. Assistant U.S. Attorneys S. Carran Daughtrey and Byron M. Jones of the Middle District of Tennessee and CEOS Trial Attorney Lauren E. Britsch prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Antioch Woman Facing Federal Charges for Embezzling More Than $200,000 from Her EmployerRead the Press Release
NASHVILLE, Tenn. – August 13, 2019 – Ilaine T. Newby, 51, of Antioch, Tennessee, was charged today with embezzling over $206,000 from a Smyrna-based company, announced U.S. Attorney Don Cochran for the Middle District of Tennessee. Newby was charged in a criminal information with three counts of wire fraud related to her embezzlement scheme.
According to the charging document, from November 2014 through June 2018, Newby embezzled approximately $206,000 from the company, identified only as “C.A.” Newby was the comptroller of the company for approximately seven years and in that position she was responsible for the company’s financial affairs, including managing the monthly financial reports, the profit and loss statements, QuickBooks entries, accounts payable, accounts receivable, and the company bank accounts and company credit card accounts. Newby paid for personal expenses using company credit cards and made payments to her personal credit cards from the company’s bank account. She also used company funds for personal expenditures, such as purchasing a Jeep Liberty and paying tuition to the University of Arizona. Newby concealed the fraud by making false entries in the company’s general ledger and providing manipulated financial records to the business’s owner.
If convicted, Newby faces up to 20 years in prison and a fine of up to $250,000 on each count. This case was investigated by the FBI and the Smyrna Police Department and is being prosecuted by Assistant U.S. Attorney Kathryn Booth.
A criminal information is merely an accusation. Newby is presumed innocent until proven guilty in a court of law.
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Four Men Sentenced to Prison for Engaging in a Child Exploitation Enterprise on the Tor NetworkRead the Press Release
The creator and lead administrator of a highly sophisticated Tor-network-based website dedicated to the sexual abuse of children was sentenced Friday, along with three others, for their roles in this global child exploitation enterprise.
Patrick D. Falte, 29, of Franklin, Tennessee, was sentenced to 35 years in prison for engaging in a child exploitation enterprise, three counts of advertising child pornography, and three counts of distributing child pornography. Benjamin A. Faulkner, 28, of Ontario, Canada, was sentenced to 35 years in prison; Andrew R. Leslie, 24, of Middleburg, Florida, was sentenced to 30 years in prison; and Brett A. Bedusek, 35, of Cudahy, Wisconsin, was sentenced to 20 years in prison, all for engaging in a child exploitation enterprise, by Chief U.S. District Judge Waverly D. Crenshaw of the Middle District of Tennessee. The judge also sentenced each defendant to a lifetime of supervised release. Falte had previously pleaded guilty to the charges in June 2018, and Faulkner, Leslie and Bedusek had pleaded guilty in November 2018.
“The Giftbox Exchange proved a haven for sophisticated predators to produce and spread deplorable depictions of child sexual abuse,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “These sentences affirm that layers of anonymity on the dark web will not prevent the Department of Justice from identifying and holding accountable those who exploit children.”
“The sentences imposed on these despicable individuals should insure that they never have another opportunity to abuse another child,” said U.S. Attorney Don Cochran for the Middle District of Tennessee. “With all that we have, we will continue to hunt down the evil and abominable like-minded individuals who delight in abusing children and will bring them to justice.”
In July 2015, Falte created a website called the “Giftbox Exchange” as a Tor hidden service, meaning it could only be accessed by users through the Tor anonymity network. Falte paid for the operation of the site using the cryptocurrency Bitcoin. He acted as the lead administrator of the site and established rules that required users to upload and share images and videos depicting pre-teen children being sexually abused before they could access the site.
The site was organized into different forums for posting different types of child pornography, categorized by age range of the minor victims — including a sub forum for “Babies & Toddlers.” At the time the site was shut down in November 2016, it had over 72,000 registered users and 56,000 posts. In addition to operating the site on the Tor network—which masks the internet protocol addresses of the users — Falte and his co-conspirators used other advanced technological means to thwart law enforcement efforts, including file encryption and cryptography.
Faulkner joined the Giftbox Exchange in September 2015 and also became an administrator of the site. In addition to his administration of Giftbox Exchange, he created and administered another Tor network-based hidden service website dedicated to child sexual exploitation, which grew to host over 200,000 users. Faulkner also created and administered a separate Tor hidden service reserved for producers of child pornography. Leslie, in addition to his membership on the Giftbox Exchange, himself ran yet another Tor network-based hidden service website, which explicitly allowed images and videos depicting graphic and violent sexual abuse of children. Bedusek, who has a prior federal conviction for receipt of child pornography and engaged in activity on Giftbox Exchange while on federal supervised release for that offense, was a VIP member of Giftbox Exchange which gave him access to a special area of the site, and a moderator on one of the hidden services created by Faulkner.
In addition to running an online network dedicated to child sexual exploitation, Falte and Faulkner were sentenced in September 2017 to life imprisonment by Judge John A. Gibney, Jr., of the Eastern District of Virginia, in connection with their sexual abuse of a toddler-aged minor to whom they gained access through an individual they met through the Giftbox Exchange. They traveled to abuse that minor on multiple occasions. Faulkner also separately traveled to Texas and sexually abused a toddler and produced child pornography of an infant. In March 2018, Leslie was sentenced to 60 years of imprisonment to be followed by a lifetime of supervised release by U.S. District Judge Brian J. Davis of the Middle District of Florida, in connection with his sexual abuse and production of child pornography involving multiple children, including an infant and a toddler.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the High Technology Investigative Unit of the Child Exploitation and Obscenity Section (CEOS). CEOS Trial Attorney Lauren E. Britsch and Assistant U.S. Attorneys S. Carran Daughtrey and Byron M. Jones of the Middle District of Tennessee prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Grand Jury Indicts Steven Wiggins on Federal Charges Relating to Death of Dickson County Sheriff’s DeputyRead the Press Release
NASHVILLE, Tenn. – August 8, 2019 – A federal grand jury sitting in Nashville yesterday, returned a four-count indictment charging Steven J. Wiggins, 32, of Dickson, Tennessee with federal carjacking and firearms violations which resulted in the death of Dickson County Sheriff’s Sergeant Daniel Baker. U.S. Attorney Don Cochran immediately filed a notice with the Court that the government intends to seek the death penalty.
After a thorough review by the Department of Justice, Attorney General William P. Barr recently granted authority to seek the death penalty in this case.
According to the indictment and court records, on May 30, 2018, Sergeant Baker encountered Wiggins after responding to a suspicious vehicle call in Dickson County. Sergeant Baker subsequently determined that the vehicle Wiggins was occupying was stolen and ordered Wiggins and his passenger out of the car. Wiggins then fired several rounds at Baker from a .45 caliber handgun. As the wounded deputy lay on the ground, Wiggins fired several more rounds, killing Baker. The indictment also alleges that after shooting Sergeant Baker, Wiggins dragged his body to his patrol car and placed him in the rear seat. Wiggins then drove the patrol car several miles, parked it and set fire to the car.
Wiggins will make an initial appearance before a U.S. Magistrate Judge at a time yet to be determined. He is presumed innocent until proven guilty in a court of law.
Agencies involved in the search and capture of Wiggins and the subsequent investigation include the Dickson County Sheriff’s Department; the 23rd District Attorney General’s Office; the Tennessee Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms & Explosives; the Tennessee Highway Patrol; the FBI; and numerous other local, state and federal agencies. U.S. Attorney Don Cochran and Assistant U.S. Attorney Robert McGuire are prosecuting the case.
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Justice Department Reaches $3 Million Settlement with Nissan Motor Acceptance Corporation for Violating the Servicemembers Civil Relief ActRead the Press Release
WASHINGTON – The Department of Justice announced today that Nissan Motor Acceptance Corporation (Nissan MAC) has agreed to pay $3 million to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA). The suit alleges that Nissan MAC repossessed 113 vehicles owned by SCRA-protected servicemembers without first obtaining the required court orders, and failed to refund up-front capitalized cost reduction (CCR) amounts to servicemembers who lawfully terminated their motor vehicle leases early after receiving military orders. This settlement is the Justice Department’s 10th settlement with an auto finance provider since 2015 and exemplifies continued efforts to enforce the SCRA’s motor vehicle repossession and lease termination provisions.
“Men and women in uniform risk their lives to serve our country, and Congress enacted the Servicemembers Civil Relief Act to protect them when they serve our nation,” said Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division. “The U.S. Department of Justice will continue to enforce the Act vigorously in order to protect servicemembers and to ensure that all covered industries comply fully with the law.”
“The SCRA exists to offer protections to our military service members and to minimize undue financial burdens associated with deployments and other instances where our military servicemembers experience a profound and prolonged lifestyle change,” said U.S. Attorney Don Cochran, for the Middle District of Tennessee. “We will aggressively hold those institutions and businesses accountable who are required to comply with the Act. Our military deserves no less.”
The SCRA prohibits repossessing a motor vehicle from a servicemember during military service without a court order if the individual made a deposit or installment payment on the loan before entering military service. The SCRA also permits servicemembers to terminate motor vehicle leases early without penalty after entering military service or receiving qualifying military orders for a permanent change of station or to deploy. When servicemembers lawfully terminate motor vehicle leases, the SCRA requires that they be refunded all lease amounts paid in advance for a period after the effective date of the termination.
Nissan MAC is a Tennessee-based auto financing company that provides auto loans and leases for customers of Nissan and Infiniti.
Individuals who lease vehicles from Nissan MAC often contribute an up-front monetary amount at lease signing, in the form of a cash payment, credit for a trade-in vehicle, rebate, or other credit. A portion of this up-front amount can be applied to the first-month’s rent and certain up-front costs such as licensing and registration fees. The remainder, which is called the CCR amount, reduces the monthly payment the lessee must make over the term of the lease. The Department’s investigation revealed that when servicemembers terminated their motor vehicle leases early pursuant to the SCRA, Nissan MAC retained the entire CCR amount.
The agreement resolves a suit filed today by the Department of Justice in the United States District Court for the Middle District of Tennessee. It covers all repossessions of servicemembers’ vehicles and leases terminated by servicemembers since Jan. 1, 2008.
The agreement requires Nissan MAC to create a $2,937,971 settlement fund to compensate servicemembers whose rights were violated under the SCRA. Additionally, Nissan MAC must pay $62,029 to the United States Treasury.
The agreement also requires Nissan MAC to revise its policies and procedures to prevent future unlawful repossessions of servicemembers’ vehicles and ensure that servicemembers who terminate their auto leases early receive a full refund of all eligible pre-paid CCR amounts. NMAC must also provide training to its employees and representatives.
The Department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section in partnership with U.S. Attorneys’ Offices throughout the country. Since 2011, the Department of Justice has obtained over $474 million in monetary relief for over 120,000 servicemembers through its enforcement of the SCRA. The SCRA provides protections for servicemembers in areas such as evictions, rental agreements, security deposits, pre-paid rent, civil judicial proceedings, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, automobile leases, life insurance, health insurance and income tax payments. For more information about the Department’s SCRA enforcement, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil/content/locator.php.
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Justice Department Reaches $3 Million Settlement with Nissan Motor Acceptance Corporation for Violating the Servicemembers Civil Relief ActRead the Press Release
The Department of Justice announced today that Nissan Motor Acceptance Corporation (Nissan MAC) has agreed to pay $3 million to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA). The suit alleges that Nissan MAC repossessed 113 vehicles owned by SCRA-protected servicemembers without first obtaining the required court orders, and failed to refund up-front capitalized cost reduction (CCR) amounts to servicemembers who lawfully terminated their motor vehicle leases early after receiving military orders. This settlement is the Justice Department’s 10th settlement with an auto finance provider since 2015 and exemplifies continued efforts to enforce the SCRA’s motor vehicle repossession and lease termination provisions.
“Men and women in uniform risk their lives to serve our country, and Congress enacted the Servicemembers Civil Relief Act to protect them when they serve our nation,” said Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division. “The U.S. Department of Justice will continue to enforce the Act vigorously in order to protect servicemembers and to ensure that all covered industries comply fully with the law.”
“The SCRA exists to offer protections to our military service members and to minimize undue financial burdens associated with deployments and other instances where our military servicemembers experience a profound and prolonged lifestyle change,” said U.S. Attorney Don Cochran, for the Middle District of Tennessee. “We will aggressively hold those institutions and businesses accountable who are required to comply with the Act. Our military deserves no less.”
The SCRA prohibits repossessing a motor vehicle from a servicemember during military service without a court order if the individual made a deposit or installment payment on the loan before entering military service. The SCRA also permits servicemembers to terminate motor vehicle leases early without penalty after entering military service or receiving qualifying military orders for a permanent change of station or to deploy. When servicemembers lawfully terminate motor vehicle leases, the SCRA requires that they be refunded all lease amounts paid in advance for a period after the effective date of the termination.
Nissan MAC is a Tennessee-based auto financing company that provides auto loans and leases for customers of Nissan and Infiniti.
Individuals who lease vehicles from Nissan MAC often contribute an up-front monetary amount at lease signing, in the form of a cash payment, credit for a trade-in vehicle, rebate, or other credit. A portion of this up-front amount can be applied to the first-month’s rent and certain up-front costs such as licensing and registration fees. The remainder, which is called the CCR amount, reduces the monthly payment the lessee must make over the term of the lease. The Department’s investigation revealed that when servicemembers terminated their motor vehicle leases early pursuant to the SCRA, Nissan MAC retained the entire CCR amount.
The agreement resolves a suit filed today by the Department of Justice in the United States District Court for the Middle District of Tennessee. It covers all repossessions of servicemembers’ vehicles and leases terminated by servicemembers since Jan. 1, 2008.
The agreement requires Nissan MAC to create a $2,937,971 settlement fund to compensate servicemembers whose rights were violated under the SCRA. Additionally, Nissan MAC must pay $62,029 to the United States Treasury.
The agreement also requires Nissan MAC to revise its policies and procedures to prevent future unlawful repossessions of servicemembers’ vehicles and ensure that servicemembers who terminate their auto leases early receive a full refund of all eligible pre-paid CCR amounts. NMAC must also provide training to its employees and representatives.
The Department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section in partnership with U.S. Attorneys’ Offices throughout the country. Since 2011, the Department of Justice has obtained over $474 million in monetary relief for over 120,000 servicemembers through its enforcement of the SCRA. The SCRA provides protections for servicemembers in areas such as evictions, rental agreements, security deposits, pre-paid rent, civil judicial proceedings, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, automobile leases, life insurance, health insurance and income tax payments. For more information about the Department’s SCRA enforcement, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil/content/locator.php.